Document:

Exhibit 4.1

                                    INDENTURE

                                     between

                      FORD CREDIT AUTO OWNER TRUST 2000-E,
                                    as Issuer

                                       and

                            THE CHASE MANHATTAN BANK,
                              as Indenture Trustee

                            Dated as of September 1, 2000

<PAGE>

                             CROSS REFERENCE TABLE1
                              ---------------------
<TABLE>
<CAPTION>
<S>                                                                                         <C>

  TIA                                                                                       Indenture
Section                                                                                      Section

310 (a)(1)....................................................................................   6.11
    (a)(2)....................................................................................   6.11
    (a)(3)....................................................................................   6.10
    (a)(4)..................................................................................    N.A.2
    (a)(5)....................................................................................   6.11
    (b)  ..................................................................................  6.8;6.11
    (c)  .....................................................................................   N.A.
311 (a)  .....................................................................................   6.12
    (b)  .....................................................................................   6.12
    (c)  .....................................................................................   N.A.
312 (a)  .....................................................................................   7.1
    (b)  .....................................................................................   7.2
    (c)  .....................................................................................   7.2
313 (a)  .....................................................................................   7.4
    (b)(1)....................................................................................   7.4
    (b)(2)....................................................................................  11.5
    (c)  .....................................................................................   7.4
    (d)  .....................................................................................   7.3
314 (a)  .....................................................................................  11.15
    (b)  .....................................................................................  11.1
    (c)(1)....................................................................................  11.1
    (c)(2)....................................................................................  11.1
    (c)(3)....................................................................................  11.1
    (d)  .....................................................................................  11.1
    (e)  .....................................................................................  11.1
    (f)  .....................................................................................  11.1
315 (a)  .....................................................................................   6.1
    (b)  ...................................................................................6.5;11.5
    (c)  .....................................................................................   6.1
    (d)  .....................................................................................   6.1
    (e)  .....................................................................................   5.13
316 (a) (last sentence).......................................................................   2.8
    (a)(1)(A).................................................................................   5.11
    (a)(1)(B).................................................................................   5.12
    (a)(2)....................................................................................   N.A.
    (b)  .....................................................................................   5.7
    (c)  .....................................................................................   N.A
317 (a)(1)....................................................................................   5.3
    (a)(2)....................................................................................   5.3
    (b)  .....................................................................................   3.3
318 (a)  .....................................................................................  11.7
</TABLE>
-----------------------

1........Note:  This Cross Reference Table shall not, for any purpose, be
         deemed to be part of this Indenture.

2........N.A. means Not Applicable.

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
<S>                                                                                                  <C>
                                    ARTICLE I

                DEFINITIONS, USAGE AND INCORPORATION BY REFERENCE

SECTION 1.1       Definitions and Usage...............................................................3
SECTION 1.2       Incorporation by Reference of Trust Indenture Act...................................3

                                   ARTICLE II

                                    THE NOTES

SECTION 2.1       Form   4
SECTION 2.2       Execution, Authentication and Delivery..............................................4
SECTION 2.3       Temporary Notes.....................................................................5
SECTION 2.4       Tax Treatment.......................................................................6
SECTION 2.5       Registration; Registration of Transfer and Exchange.................................6
SECTION 2.6       Mutilated, Destroyed, Lost or Stolen Notes..........................................8
SECTION 2.7       Persons Deemed Owners...............................................................9
SECTION 2.8       Payment of Principal and Interest; Defaulted Interest..............................10
SECTION 2.9       Cancellation.......................................................................11
SECTION 2.10      Release of Collateral..............................................................12
SECTION 2.11      Book-Entry Notes...................................................................12
SECTION 2.12      Notices to Clearing Agency.........................................................14
SECTION 2.13      Definitive Notes...................................................................14
SECTION 2.14      Authenticating Agents..............................................................14

                                   ARTICLE III

                                    COVENANTS

SECTION 3.1       Payment of Principal and Interest..................................................16
SECTION 3.2       Maintenance of Office or Agency....................................................16
SECTION 3.3       Money for Payments To Be Held in Trust.............................................16
SECTION 3.4       Existence..........................................................................19
SECTION 3.5       Protection of Indenture Trust Estate...............................................19
SECTION 3.6       Opinions as to Indenture Trust Estate..............................................20
SECTION 3.7       Performance of Obligations; Servicing of Receivables...............................21
SECTION 3.8       Negative Covenants.................................................................23
SECTION 3.9       Annual Statement as to Compliance..................................................24
SECTION 3.10      Issuer May Consolidate, etc., Only on Certain Terms................................25

<PAGE>

SECTION 3.11      Successor or Transferee............................................................27
SECTION 3.12      No Other Business..................................................................28
SECTION 3.13      No Borrowing.......................................................................28
SECTION 3.14      Servicer's Obligations.............................................................28
SECTION 3.15      Guarantees, Loans, Advances and Other Liabilities..................................28
SECTION 3.16      Capital Expenditures...............................................................28
SECTION 3.17      Further Instruments and Acts.......................................................28
SECTION 3.18      Restricted Payments................................................................29
SECTION 3.19      Notice of Events of Default........................................................29
SECTION 3.20      Removal of Administrator...........................................................29
<PAGE>
                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

SECTION 4.1       Satisfaction and Discharge of Indenture............................................30
SECTION 4.2       Satisfaction, Discharge and Defeasance of Notes....................................31
SECTION 4.3       Application of Trust Money.........................................................33
SECTION 4.4       Repayment of Monies Held by Note Paying Agent......................................33

                                    ARTICLE V

                                    REMEDIES

SECTION 5.1       Events of Default..................................................................35
SECTION 5.2       Acceleration of Maturity; Rescission and Annulment.................................37
SECTION 5.3       Collection of Indebtedness and Suits for Enforcement by Indenture Trustee..........38
SECTION 5.4       Remedies; Priorities...............................................................41
SECTION 5.5       Optional Preservation of the Receivables...........................................45
SECTION 5.6       Limitation of Suits................................................................46
SECTION 5.7       Unconditional Rights of Noteholders To Receive Principal and Interest..............47
SECTION 5.8       Restoration of Rights and Remedies.................................................47
SECTION 5.9       Rights and Remedies Cumulative.....................................................47
SECTION 5.10      Delay or Omission Not a Waiver.....................................................48
SECTION 5.11      Control by Controlling Note Class of Noteholders...................................48
SECTION 5.12      Waiver of Past Defaults............................................................49
SECTION 5.13      Undertaking for Costs..............................................................49
SECTION 5.14      Waiver of Stay or Extension Laws...................................................50
SECTION 5.15      Action on Notes....................................................................50

<PAGE>

SECTION 5.16      Performance and Enforcement of Certain Obligations.................................50

                                   ARTICLE VI

                              THE INDENTURE TRUSTEE

SECTION 6.1       Duties of Indenture Trustee........................................................52
SECTION 6.2       Rights of Indenture Trustee........................................................53
SECTION 6.3       Individual Rights of Indenture Trustee.............................................55
SECTION 6.4       Indenture Trustee's Disclaimer.....................................................55
SECTION 6.5       Notice of Defaults. ...............................................................55
SECTION 6.6       Reports by Indenture Trustee to Noteholders........................................55
SECTION 6.7       Compensation and Indemnity.........................................................55
SECTION 6.8       Replacement of Indenture Trustee...................................................56
SECTION 6.9       Successor Indenture Trustee by Merger..............................................58
SECTION 6.10      Appointment of Co-Indenture Trustee or Separate Indenture Trustee..................59
SECTION 6.11      Eligibility; Disqualification......................................................60
SECTION 6.12      Preferential Collection of Claims Against Issuer...................................62

<PAGE>
                                   ARTICLE VII

                         NOTEHOLDERS' LISTS AND REPORTS

SECTION 7.1       Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders.............63
SECTION 7.2       Preservation of Information; Communications to Noteholders.........................63
SECTION 7.3       Reports by Issuer..................................................................64
SECTION 7.4       Reports by Indenture Trustee.......................................................64

                                  ARTICLE VIII

                      ACCOUNTS, DISBURSEMENTS AND RELEASES

SECTION 8.1       Collection of Money................................................................66
SECTION 8.2       Trust Accounts and Payahead Account................................................66
SECTION 8.3       General Provisions Regarding Accounts..............................................70
SECTION 8.4       Release of Indenture Trust Estate..................................................72
SECTION 8.5       Opinion of Counsel.................................................................73
<PAGE>

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

SECTION 9.1       Supplemental Indentures Without Consent of Noteholders.............................74
SECTION 9.2       Supplemental Indentures with Consent of Noteholders................................76
SECTION 9.3       Execution of Supplemental Indentures...............................................78
SECTION 9.4       Effect of Supplemental Indenture...................................................79
SECTION 9.5       Conformity with Trust Indenture Act................................................79
SECTION 9.6       Reference in Notes to Supplemental Indentures......................................79

                                    ARTICLE X

                               REDEMPTION OF NOTES

SECTION 10.1      Redemption.........................................................................80
SECTION 10.2      Form of Redemption Notice..........................................................80
SECTION 10.3      Notes Payable on Redemption Date...................................................81

<PAGE>
                                   ARTICLE XI

SECTION 11.1      Compliance Certificates and Opinions, etc..........................................82
SECTION 11.2      Form of Documents Delivered to Indenture Trustee...................................84
SECTION 11.3      Acts of Noteholders................................................................85
SECTION 11.4      Notices, etc., to Indenture Trustee, Issuer and Rating Agencies....................86
SECTION 11.5      Notices to Noteholders; Waiver.....................................................87
SECTION 11.6      Alternate Payment and Notice Provisions............................................88
SECTION 11.7      Conflict with Trust Indenture Act..................................................88
SECTION 11.8      Effect of Headings and Table of Contents...........................................89
SECTION 11.9      Successors and Assigns.............................................................89
SECTION 11.10     Separability.......................................................................89
SECTION 11.11     Benefits of Indenture..............................................................89
SECTION 11.12     Legal Holidays.....................................................................89
SECTION 11.13     Governing Law......................................................................90
SECTION 11.14     Counterparts.......................................................................90
SECTION 11.15     Recording of Indenture.............................................................90
SECTION 11.16     Trust Obligation...................................................................90
SECTION 11.17     No Petition........................................................................91

<PAGE>

SECTION 11.18     Inspection.........................................................................91

EXHIBIT A-1 [FORM OF CLASS A-1 NOTE]..............................................................A-1-1

EXHIBIT A-2 [FORM OF CLASS A-2 NOTE]..............................................................A-2-1

EXHIBIT A-3 [FORM OF CLASS A-3 NOTE]..............................................................A-3-1

EXHIBIT A-4 [FORM OF CLASS A-4 NOTE]..............................................................A-4-1

EXHIBIT A-5 [FORM OF CLASS A-5 NOTE]..............................................................A-5-1

EXHIBIT B [FORM OF CLASS B NOTE]....................................................................B-1

EXHIBIT C [FORM OF NOTE DEPOSITORY AGREEMENT].......................................................B-1

SCHEDULE A Schedule of Receivables.................................................................SA-1

APPENDIX A Definitions and Usage...................................................................AA-1

</TABLE>

<PAGE>

                  INDENTURE,  dated as of  September  1, 2000,  (as from time to
time  amended,   supplemented  or  otherwise   modified  and  in  effect,   this
"Indenture")  between FORD CREDIT AUTO OWNER TRUST 2000-E,  a Delaware  business
trust,  as Issuer,  and THE CHASE  MANHATTAN  BANK, a New York  corporation,  as
trustee and not in its  individual  capacity (in such  capacity,  the "Indenture
Trustee").

                  Each  party  agrees as  follows  for the  benefit of the other
party and for the equal and ratable benefit of the holders of the Issuer's Class
A-1 6.581% Asset  Backed  Notes (the "Class A-1 Notes"),  Class A-2 6.668% Asset
Backed  Notes (the "Class A-2  Notes"),  Class A-3 6.74% Asset Backed Notes (the
"Class A-3 Notes"),  Class A-4 6.74% Asset Backed Notes (the "Class A-4 Notes"),
Class A-5 6.77% Asset Backed Notes (the "Class A-5 Notes" and, together with the
Class A-1  Notes,  the Class  A-2  Notes,  the Class A-3 Notes and the Class A-4
Notes,  the "Class A Notes") and Class B 6.99% Asset  Backed Notes (the "Class B
Notes" and, together with the Class A Notes, the "Notes"):
<PAGE>

                                 GRANTING CLAUSE

                  The  Issuer  hereby  Grants to the  Indenture  Trustee  at the
Closing Date, as Indenture  Trustee for the benefit of the  Noteholders,  all of
the Issuer's  right,  title and interest in, to and under,  whether now owned or
existing or hereafter acquired or arising, (a) the Receivables; (b) with respect
to  Actuarial  Receivables,  monies due  thereunder  on or after the Cutoff Date
(including Payaheads) and, with respect to Simple Interest  Receivables,  monies
due or received  thereunder on or after the Cutoff Date  (including in each case
any monies received prior to the Cutoff Date that are due on or after the Cutoff
Date and were not used to reduce the principal  balance of the Receivable);  (c)
the security  interests in the Financed Vehicles granted by Obligors pursuant to
the Receivables  and any other interest of the Issuer in the Financed  Vehicles;
(d) rights to receive  proceeds with respect to the  Receivables  from claims on
any physical damage, credit life, credit disability, or other insurance policies
covering  Financed  Vehicles or Obligors;  (e) Dealer  Recourse;  (f) all of the
rights  to the  Receivable  Files;  (g) the  Trust  Accounts  and  all  amounts,
securities,  investments  and other property  deposited in or credited to any of

<PAGE>

the foregoing and all proceeds  thereof;  (h) the Sale and Servicing  Agreement;
(i) all of the rights under the Purchase  Agreement,  including the right of the
Seller to cause Ford  Credit to  repurchase  Receivables  from the  Seller;  (j)
payments and proceeds with respect to the Receivables held by the Servicer;  (k)
all property  (including the right to receive  Liquidation  Proceeds) securing a
Receivable (other than a Receivable  purchased by the Servicer or repurchased by
the  Seller);  (l) rebates of premiums and other  amounts  relating to insurance
policies  and other items  financed  under the  Receivables  in effect as of the
Cutoff Date;  and (m) all present and future claims,  demands,  causes of action
and choses in action in respect of any or all of the  foregoing and all payments
on or under and all proceeds of every kind and nature  whatsoever  in respect of
any or all of the foregoing,  including all proceeds of the conversion  thereof,
voluntary or involuntary, into cash or other liquid property, all cash proceeds,
accounts,  accounts  receivable,  notes,  drafts,  acceptances,  chattel  paper,
checks,  deposit accounts,  insurance proceeds,  condemnation awards,  rights to
payment of any and every kind and other forms of  obligations  and  receivables,
instruments  and other property  which at any time  constitute all or part of or
are  included  in  the  proceeds  of any of  the  foregoing  (collectively,  the
"Collateral").

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

                  The Indenture  Trustee,  as Indenture Trustee on behalf of the
Noteholders, 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 Noteholders may be adequately and effectively protected.

<PAGE>

                                    ARTICLE I

                DEFINITIONS, USAGE AND INCORPORATION BY REFERENCE

                  SECTION  1.1  Definitions  and  Usage.   Except  as  otherwise
specified herein or as the context may otherwise require, capitalized terms used
but not otherwise  defined  herein are defined in Appendix A hereto,  which also
contains rules as to usage that shall be applicable herein.

                  SECTION 1.2 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:

                  "indenture securities" shall mean the Notes.

                  "indenture security holder" shall mean a Noteholder.

                  "indenture to be qualified" shall mean this Indenture.

                  "indenture trustee" or "institutional trustee" shall mean the
                   Indenture Trustee.

                  "obligor" on the  indenture  securities  shall mean the Issuer
                   and any other obligor on the indenture securities.

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

<PAGE>

                                   ARTICLE II

                                    THE NOTES

                  SECTION  2.1  Form.  (a) The Class  A-1  Notes,  the Class A-2
Notes,  the Class A-3 Notes,  the Class A-4  Notes,  the Class A-5 Notes and the
Class  B  Notes,   together  with  the  Indenture   Trustee's   certificates  of
authentication,  shall be in  substantially  the form set forth in Exhibit  A-1,
Exhibit A-2, Exhibit A-3, Exhibit A-4, Exhibit A-5 and Exhibit B,  respectively,
with such appropriate insertions, omissions,  substitutions and other variations
as are  required or  permitted  by this  Indenture,  and may have such  letters,
numbers or other marks of identification and such legends or endorsements placed
thereon as may,  consistently  herewith, be determined by the officers executing
such Notes, as evidenced by their execution thereof.  Any portion of the text of
any Note may be set forth on the reverse thereof,  with an appropriate reference
thereto on the face of the Note.

                  (b)  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.

                  (c) Each Note  shall be dated the date of its  authentication.
The terms of the Notes set forth in  Exhibit  A-1,  Exhibit  A-2,  Exhibit  A-3,
Exhibit A-4,  Exhibit A-5 and Exhibit B are part of the terms of this  Indenture
and are incorporated herein by reference.

                  SECTION 2.2 Execution,  Authentication  and Delivery.  (a) The
Notes  shall be  executed  on  behalf  of the  Issuer  by any of its  Authorized
Officers.  The  signature  of any such  Authorized  Officer  on the Notes may be
manual or facsimile.

                  (b)  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.
<PAGE>

                  (c)  The   Indenture   Trustee   shall,   upon  Issuer  Order,
authenticate and deliver the Notes for original issue in the Classes and initial
aggregate principal amounts as set in the table below.

<TABLE>
<CAPTION>

        Class            Initial Aggregate
                         Principal Amount

<S>                     <C>

Class A-1 Notes         $200,000,000

Class A-2 Notes         $331,000,000

Class A-3 Notes         $995,000,000

Class A-4 Notes         $995,000,000

Class A-5 Notes         $181,308,000

Class B Notes           $100,086,000

</TABLE>

The aggregate  principal amount of Class A-1 Notes,  Class A-2 Notes,  Class A-3
Notes,  Class A-4 Notes,  Class A-5 Notes and Class B Notes  Outstanding  at any
time may not exceed those respective amounts except as provided in Section 2.6.

                  (d) The Class A-1 and Class  A-2 Notes  shall be  issuable  as
Book-Entry Notes in minimum  denominations of $100,000 and in integral multiples
of $1,000 in excess  thereof.  The Class A-3,  Class A-4,  Class A-5 and Class B
Notes shall be issuable as Book-Entry  Notes in minimum  denominations of $1,000
and in integral multiples of $1,000 in excess thereof.

                  (e) No Note  shall  be  entitled  to any  benefit  under  this
Indenture or be valid or  obligatory  for any purpose,  unless there  appears on
such Note a certificate of authentication substantially in the form provided for
herein executed by the Indenture  Trustee by the manual  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.

<PAGE>

                  SECTION 2.3 Temporary  Notes.  (a) Pending the  preparation of
definitive  Notes,  the Issuer may execute,  and upon receipt of an Issuer Order
the Indenture Trustee shall  authenticate and deliver,  temporary Notes that are
printed,   lithographed,   typewritten,   mimeographed  or  otherwise  produced,
substantially  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  the  temporary  Notes may  determine,  as
evidenced by their execution of such temporary Notes.

<PAGE>

                  If  temporary  Notes  are  issued,   the  Issuer  shall  cause
definitive  Notes  to  be  prepared  without   unreasonable   delay.  After  the
preparation of definitive  Notes,  the temporary Notes shall be exchangeable for
definitive  Notes upon surrender of the temporary  Notes at the office or agency
of the Issuer to be maintained as provided in Section 3.2, without charge to the
Noteholder.  Upon surrender for cancellation of any one or more temporary Notes,
the Issuer shall  execute,  and the  Indenture  Trustee shall  authenticate  and
deliver in exchange  therefor,  a like principal  amount of definitive  Notes of
authorized  denominations.  Until so exchanged, the temporary Notes shall in all
respects be entitled to the same  benefits  under this  Indenture as  definitive
Notes.

                  SECTION 2.4 Tax  Treatment.  The Issuer has entered  into this
Indenture,  and the Notes shall be issued, with the intention that, for federal,
State and local income and franchise  tax  purposes,  the Notes shall qualify as
indebtedness of the Issuer secured by the Indenture Trust Estate. The Issuer, by
entering into this Indenture,  and each Noteholder,  by its acceptance of a Note
(and  each  Note  Owner  by its  acceptance  of an  interest  in the  applicable
Book-Entry Note),  agree to treat the Notes for federal,  State and local income
and franchise tax purposes as indebtedness of the Issuer.

                  SECTION  2.5   Registration;   Registration  of  Transfer  and
Exchange. (a) The Issuer shall cause to be kept a register (the "Note Register")
in which, subject to such reasonable regulations as it may prescribe, the Issuer

<PAGE>

shall provide for the registration of Notes and the registration of transfers of
Notes.  The Indenture  Trustee  initially shall be the "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, (i) the Issuer shall 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, (ii) the Indenture Trustee
shall have the right to inspect the Note Register at all reasonable times and to
obtain copies thereof,  and (iii) 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  Noteholders  and the
principal amounts and number of such Notes.
<PAGE>

                  (b) [Reserved]

                  (c) Upon surrender for registration of transfer of any Note at
the office or agency of the Issuer to be  maintained as provided in Section 3.2,
if the  requirements  of Section  8-401(1)  of the UCC are met 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
denomination, of a like aggregate principal amount.

                  (d) At the option of the  Noteholder,  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,  if the
requirements  of Section  8-401(1) of the UCC are met, the Issuer shall execute,
the Indenture Trustee shall  authenticate,  and the Noteholder shall obtain from
the Indenture  Trustee,  the Notes which the Noteholder  making such exchange is
entitled to receive.

                  (e) All Notes  issued  upon any  registration  of  transfer or
exchange of Notes shall be the valid  obligations of the Issuer,  evidencing the

<PAGE>

same debt,  and entitled to the same benefits  under this Indenture as the Notes
surrendered upon such registration of transfer or exchange.

                  (f) Every Note presented or surrendered  for  registration  of
transfer or  exchange  shall be (i) duly  endorsed  by, or be  accompanied  by a
written  instrument of transfer in form  satisfactory  to the Indenture  Trustee
duly  executed by, the  Noteholder  thereof or such  Noteholder's  attorney duly
authorized in writing,  with such signature guaranteed by an "eligible guarantor
institution" meeting the requirements of the Note Registrar,  which requirements
include membership or participation in STAMP or such other "signature  guarantee
program"  as may be  determined  by the Note  Registrar  in  addition  to, or in
substitution  for, STAMP, all in accordance with the Securities  Exchange Act of
1934, as amended,  and (ii)  accompanied by such other  documents or evidence as
the Indenture Trustee may require.

                  (g) No service  charge shall be made to a  Noteholder  for any
registration  of  transfer  or  exchange  of Notes,  but the Issuer 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 2.3 or 9.6 not  involving any
transfer.

                  (h)   The   preceding   provisions   of   this   Section   2.5
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 fifteen (15) days preceding the  Distribution  Date for
any payment with respect to such Note.

                  SECTION 2.6 Mutilated, Destroyed, Lost or Stolen Notes. (a) If
(i) any mutilated Note is surrendered to the Indenture Trustee, or the Indenture
Trustee receives evidence to its satisfaction of the destruction,  loss or theft
of any Note, and (ii) there is delivered to the Indenture  Trustee such security
or  indemnity  as may be  required  by it to hold the Issuer  and the  Indenture
Trustee  harmless,  then,  in the  absence  of  notice to the  Issuer,  the Note
Registrar  or the  Indenture  Trustee  that  such  Note has been  acquired  by a
protected  purchaser,  as defined in Section 8-303 of the UCC, and provided that

<PAGE>

the  requirements of Section 8-405 of the UCC are met, the Issuer shall execute,
and upon Issuer 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 (7) 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 protected purchaser of the original Note in lieu of which
such  replacement  Note was issued  presents for payment such original Note, the
Issuer and the Indenture  Trustee shall be entitled to recover such  replacement
Note (or such  payment)  from the Person to whom it was  delivered or any Person
taking such  replacement Note from such Person to whom such replacement Note was
delivered  or any  assignee of such Person,  except a protected  purchaser,  and
shall be entitled to recover upon the security or indemnity provided therefor to
the extent of any loss,  damage,  cost or expense  incurred by the Issuer or the
Indenture Trustee in connection therewith.

                  (b) Upon the  issuance  of any  replacement  Note  under  this
Section 2.6, the Issuer may require the payment by the  Noteholder  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) connected therewith.

                  (c) Every replacement Note issued pursuant to this Section 2.6
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.

<PAGE>

                  (d) The provisions of this Section 2.6 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 2.7 Persons  Deemed Owners.  Prior to due  presentment
for registration of transfer of any Note, the Issuer,  the Indenture Trustee and
any agent of the Issuer or the  Indenture  Trustee may treat the Person in whose
name any Note is  registered  (as of the day of  determination)  as the owner of
such Note for the purpose of receiving payments of principal of and interest, if
any,  on such Note and for all other  purposes  whatsoever,  whether or not such
Note be overdue,  and none of the Issuer,  the Indenture Trustee or any agent of
the Issuer or the Indenture Trustee shall be affected by notice to the contrary.

              SECTION 2.8 Payment of Principal and Interest; Defaulted Interest.
(a) The Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the Class A-4
Notes,  the Class A-5 Notes and the Class B Notes shall  accrue  interest at the
Class A-1 Rate,  the Class A-2 Rate, the Class A-3 Rate, the Class A-4 Rate, the
Class A-5 Rate and the Class B Rate, respectively,  as set forth in Exhibit A-1,
Exhibit A-2, Exhibit A-3, Exhibit A-4, Exhibit A-5 and Exhibit B,  respectively,
and  such  interest  shall  be due  and  payable  on each  Distribution  Date as
specified  therein,  subject to Section  3.1.  Any  installment  of  interest or
principal,  if any, payable on any Note that is punctually paid or duly provided
for by the  Issuer  on the  applicable  Distribution  Date  shall be paid to the
Person in whose name such Note (or one or more Predecessor  Notes) is registered
on the Record Date either by wire transfer in immediately  available  funds,  to
the account of such  Noteholder  at a bank or other  entity  having  appropriate
facilities  therefor,  if  such  Noteholder  shall  have  provided  to the  Note
Registrar appropriate written instructions at least five (5) Business Days prior
to such Distribution Date and such Noteholder's  Notes in the aggregate evidence
a  denomination  of not less  than  $1,000,000,  or,  if not,  by  check  mailed
first-class  postage prepaid to such Person's  address as it appears on the Note
Register on such Record Date;  provided that,  unless Definitive Notes have been
issued to Note Owners pursuant to Section 2.13, 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  shall  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,  Redemption  Date or the  applicable  Final  Scheduled
Distribution  Date,  which  shall  be  payable  as  provided  below.  The  funds
represented by any such checks returned  undelivered shall be held in accordance
with Section 3.3.

                  (b)  The   principal   of  each  Note   shall  be  payable  in
installments  on each  Distribution  Date as  provided in the forms of Notes set
forth in Exhibit A-1,  Exhibit A-2,  Exhibit A-3,  Exhibit A-4,  Exhibit A-5 and
Exhibit B hereto.  Notwithstanding  the foregoing,  the entire unpaid  principal
amount of each Class of Notes shall be due and payable,  if not previously paid,
on the date on which an Event of Default shall have occurred and be  continuing,
if the Indenture  Trustee or the Noteholders of Notes evidencing not less than a
majority of the Note  Balance of the  Controlling  Note Class have  declared the
Notes to be immediately  due and payable in the manner  provided in Section 5.2.
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 shall be paid. Such
notice  shall  be  mailed  or  transmitted  by  facsimile  prior  to such  final
Distribution Date and shall specify that such final installment shall 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 redemption of Notes shall be mailed to
Noteholders as provided in Section 10.2.
<PAGE>

                  (c) If the Issuer  defaults  in a payment of  interest  on the
Notes, the Issuer shall pay defaulted  interest (plus interest on such defaulted
interest  to the extent  lawful) at the  applicable  Note  Interest  Rate on the
Distribution  Date following  such default.  The Issuer shall pay such defaulted
interest  to the  Persons  who are  Noteholders  on the  Record  Date  for  such
following Distribution Date.

                  SECTION 2.9  Cancellation.  All Notes surrendered for payment,
registration  of transfer,  exchange or redemption  shall, if surrendered to any
Person other than the Indenture  Trustee,  be delivered to the Indenture Trustee
and shall be promptly cancelled by the Indenture Trustee.  The Issuer may at any
time deliver to the  Indenture  Trustee for  cancellation  any Notes  previously
authenticated and delivered  hereunder which the Issuer may have acquired in any
manner whatsoever, and all Notes so delivered shall be promptly cancelled by the
Indenture Trustee. No Notes shall be authenticated in lieu of or in exchange for
any Notes  cancelled  as  provided  in this  Section  2.9,  except as  expressly
permitted by this  Indenture.  All cancelled Notes may be held or disposed of by
the  Indenture  Trustee in  accordance  with its standard  retention or disposal
policy as in effect at the time  unless  the  Issuer  shall  direct by an Issuer
Order that they be  destroyed or returned to it and so long as such Issuer Order
is timely and the Notes have not been  previously  disposed of by the  Indenture
Trustee.

                  SECTION  2.10 Release of  Collateral.  Subject to Section 11.1
and the  terms of the Basic  Documents,  the  Indenture  Trustee  shall  release
property from the lien of this  Indenture only upon receipt of an Issuer Request
accompanied by an Officer's  Certificate,  an Opinion of Counsel and Independent
Certificates  in accordance with TIA Sections 314(c) and 314(d)(1) or an Opinion
of Counsel in lieu of such  Independent  Certificates to the effect that the TIA
does not require any such  Independent  Certificates.  If the  Commission  shall
issue an exemptive order under TIA Section 304(d)  modifying the Owner Trustee's
obligations under TIA Sections 314(c) and 314(d)(1), subject to Section 11.1 and
the terms of the Basic Documents,  the Indenture  Trustee shall release property
from the lien of this Indenture in accordance with the conditions and procedures
set forth in such exemptive order.

                  SECTION  2.11  Book-Entry  Notes.  The  Notes,  upon  original
issuance,  shall be issued in the form of  typewritten  Notes  representing  the
Book-Entry  Notes, to be delivered to The Depository Trust Company,  the initial
Clearing Agency,  by, or on behalf of, the Issuer. The Book-Entry Notes shall be
registered initially on the Note Register in the name of Cede & Co., the nominee
of the  initial  Clearing  Agency,  and no Note Owner  thereof  shall  receive a
Definitive Note (as defined below)  representing  such Note Owner's  interest in
such Note,  except as provided  in Section  2.13.  Unless and until  definitive,
fully registered  Notes (the  "Definitive  Notes") have been issued to such Note
Owners pursuant to Section 2.13:
<PAGE>

                           (i)  the provisions of this Section 2.11 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  Book-Entry  Notes and the  giving of
                  instructions or directions  hereunder) as the sole Noteholder,
                  and shall have no obligation to the Note Owners;

                           (iii)  to the  extent  that  the  provisions  of this
                  Section  2.11  conflict  with  any  other  provisions  of this
                  Indenture, the provisions of this Section 2.11 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
                  pursuant to the Note  Depository  Agreement.  Unless and until
                  Definitive Notes are issued to Note Owners pursuant to Section
                  2.13,  the  initial  Clearing  Agency  shall  make  book-entry
                  transfers among the Clearing Agency  Participants  and receive
                  and  transmit  payments of  principal  of and  interest on the
                  Book-Entry Notes to such Clearing Agency Participants; and

                           (v)  whenever  this  Indenture  requires  or  permits
                  actions to be taken based upon  instructions  or directions of
                  Noteholders of Notes evidencing a specified  percentage of the
                  Note Balance of the Notes  Outstanding  (or any Class thereof,
                  including  the  Controlling  Note Class) the  Clearing  Agency
                  shall be  deemed  to  represent  such  percentage  only to the
                  extent that it has received  instructions  to such effect from
                  Note Owners  and/or  Clearing  Agency  Participants  owning or
                  representing,  respectively,  such required  percentage of the
                  beneficial   interest  of  the  Notes  Outstanding  (or  Class
                  thereof,   including  the  Controlling  Note  Class)  and  has
                  delivered such instructions to the Indenture Trustee.
<PAGE>

                  SECTION 2.12 Notices to Clearing Agency.  Whenever a notice or
other  communication  to the  Noteholders of Book-Entry  Notes is required under
this Indenture,  unless and until Definitive Notes shall have been issued to the
Note Owners pursuant to Section 2.13, the Indenture  Trustee shall give all such
notices  and  communications  specified  herein  to be given to  Noteholders  of
Book-Entry  Notes to the Clearing  Agency,  and shall have no obligation to such
Note Owners.

                  SECTION 2.13  Definitive  Notes.  With respect to any Class or
Classes of  Book-Entry  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 with respect to such Class of Book-Entry
Notes and the Administrator is unable to locate a qualified successor,  (ii) the
Administrator,  at its option,  advises the Indenture Trustee in writing that it
elects to terminate the book-entry  system through the Clearing  Agency or (iii)
after  the  occurrence  of  an  Event  of  Default  or  an  Event  of  Servicing
Termination, Note Owners of such Class of Book-Entry Notes evidencing beneficial
interests aggregating not less than a majority of the Note Balance of such Class
advise  the  Indenture  Trustee  and the  Clearing  Agency in  writing  that the
continuation of a book-entry  system through the Clearing Agency is no longer in
the best interests of such Class of Note Owners,  then the Clearing Agency shall
notify all Note Owners of such Class and the Indenture Trustee of the occurrence
of such event and of the  availability of Definitive Notes to the Note Owners of
the  applicable  Class  requesting  the same.  Upon  surrender to the  Indenture
Trustee  of the  typewritten  Notes  representing  the  Book-Entry  Notes by the
Clearing  Agency,  accompanied by  registration  instructions,  the Issuer shall
execute and the Indenture  Trustee shall  authenticate  the Definitive  Notes in
accordance with the instructions of the Clearing Agency. None of the Issuer, the
Note  Registrar  or the  Indenture  Trustee  shall be  liable  for any  delay in
delivery  of such  instructions  and may  conclusively  rely  on,  and  shall be
protected  in relying on, such  instructions.  Upon the  issuance of  Definitive
Notes to Note Owners,  the Indenture Trustee shall recognize the holders of such
Definitive Notes as Noteholders.

                  SECTION 2.14 Authenticating  Agents. (a) The Indenture Trustee
may appoint one or more Persons (each, an "Authenticating  Agent") with power to
act on its behalf and subject to its direction in the authentication of Notes in
connection with issuance,  transfers and exchanges under Sections 2.2, 2.3, 2.5,
2.6 and  9.6,  as  fully  to all  intents  and  purposes  as  though  each  such
Authenticating  Agent  had  been  expressly  authorized  by  those  Sections  to
authenticate such Notes. For all purposes of this Indenture,  the authentication
of Notes by an  Authenticating  Agent  pursuant  to this  Section  2.14 shall be
deemed to be the authentication of Notes "by the Indenture Trustee."

                  (b) Any corporation into which any Authenticating Agent may be
merged or converted  or with which it may be  consolidated,  or any  corporation
resulting   from  any  merger,   consolidation   or   conversion  to  which  any
Authenticating  Agent shall be a party, or any corporation  succeeding to all or
substantially all of the corporate trust business of any  Authenticating  Agent,
shall be the  successor  of such  Authenticating  Agent  hereunder,  without the
execution or filing of any further act on the part of the parties hereto or such
Authenticating Agent or such successor corporation.
<PAGE>

                  (c) Any Authenticating  Agent may at any time resign by giving
written notice of  resignation  to the Indenture  Trustee and the Owner Trustee.
The Indenture Trustee may at any time terminate the agency of any Authenticating
Agent by giving written notice of termination to such  Authenticating  Agent and
the Owner  Trustee.  Upon  receiving  such notice of  resignation or upon such a
termination,  the Indenture Trustee may appoint a successor Authenticating Agent
and shall give written notice of any such appointment to the Owner Trustee.

                  (d) The  Administrator  agrees  to pay to each  Authenticating
Agent from time to time reasonable compensation for its services. The provisions
of Sections 2.9 and 6.4 shall be applicable to any Authenticating Agent.

                                   ARTICLE III

                                    COVENANTS

                  SECTION  3.1 Payment of  Principal  and  Interest.  The Issuer
shall 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 and subject to Section 8.2, on each Distribution Date the
Issuer shall cause to be paid all amounts on deposit in the  Collection  Account
and the Principal  Distribution  Account with respect to the  Collection  Period
preceding such  Distribution Date and deposited therein pursuant to the Sale and
Servicing Agreement. 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 3.2 Maintenance of Office or Agency.  The Issuer shall
maintain in the Borough of Manhattan,  The City of New York, an office or agency
where Notes may be surrendered  for  registration  of transfer or exchange,  and
where notices and demands to or upon the Issuer in respect of the Notes and this
Indenture  may be served.  The Issuer  hereby  initially  appoints the Indenture
Trustee to serve as its agent for the foregoing purposes.  The Issuer shall give
prompt  written  notice to the  Indenture  Trustee of the  location,  and of any
change in the  location,  of any such  office or  agency.  If, at any time,  the
Issuer shall fail to maintain any such office or agency or shall fail to furnish
the Indenture  Trustee with the address thereof,  such  surrenders,  notices and
demands  may be made or served at the  Corporate  Trust  Office,  and the Issuer
hereby  appoints  the  Indenture  Trustee  as its  agent  to  receive  all  such
surrenders, notices and demands.

                  SECTION  3.3 Money for  Payments  To Be Held in Trust.  (a) As
provided in Sections  8.2 and  5.4(b),  all  payments of amounts due and payable
with  respect to any Notes that are to be made from amounts  withdrawn  from the
Trust Accounts and the Payahead Account shall be made on behalf of the Issuer by
the  Indenture  Trustee  or by  another  Note  Paying  Agent,  and no amounts so
withdrawn from the Trust Accounts and the Payahead Account for payments of Notes
shall be paid over to the Issuer, except as provided in this Section 3.3.
<PAGE>

                  (b) On or before each  Distribution  Date and Redemption Date,
the Issuer shall deposit or cause to be deposited in the  Collection  Account an
aggregate  sum  sufficient to pay the amounts then becoming due under the Notes,
such sum to be held in trust for the  benefit of the Persons  entitled  thereto,
and (unless the Note  Paying  Agent is the  Indenture  Trustee)  shall  promptly
notify the Indenture Trustee of its action or failure so to act.

                  (c) The Issuer  shall cause each Note Paying  Agent other than
the  Indenture  Trustee  to execute  and  deliver  to the  Indenture  Trustee an
instrument  in which such Note  Paying  Agent  shall  agree  with the  Indenture
Trustee (and if the Indenture  Trustee acts as Note Paying  Agent,  it hereby so
agrees),  subject to the  provisions  of this Section 3.3, that such Note Paying
Agent shall:

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

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

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

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

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

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

                  (e)  Subject  to  applicable  laws with  respect to escheat of
funds, any money held by the Indenture Trustee or any Note Paying Agent in trust
for the  payment  of any  amount  due with  respect  to any  Note and  remaining
unclaimed  for two (2) years after such amount has become due and payable  shall
be discharged from such trust and be paid to the Issuer on Issuer  Request;  and
the Noteholder of such Note shall thereafter,  as an unsecured general creditor,
look only to the  Issuer  for  payment  thereof  (but only to the  extent of the
amounts so paid to the Issuer),  and all liability of the  Indenture  Trustee or
such Note Paying Agent with respect to such trust money shall  thereupon  cease;
provided,  however, that the Indenture Trustee or such Note 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 thirty (30) days
from the date of such  publication,  any  unclaimed  balance  of such money then
remaining shall be repaid to the Issuer.  The Indenture Trustee shall also adopt
and employ,  at the expense and  direction of the Issuer,  any other  reasonable
means of notification of such repayment (including,  but not limited to, mailing
notice of such  repayment to  Noteholders  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 Note Paying Agent, at the last address of record for each such
Noteholder).

                  SECTION 3.4  Existence.  The Issuer  shall keep in full effect
its  existence,  rights and franchises as a business trust under the laws of the
State of Delaware  (unless it becomes,  or any successor  Issuer hereunder is or
becomes,  organized under the laws of any other State or of the United States of
America,  in which case the  Issuer  shall  keep in full  effect its  existence,
rights  and  franchises  under the laws of such  other  jurisdiction)  and shall
obtain and preserve its  qualification  to do business in each  jurisdiction  in
which such  qualification  is or shall be  necessary to protect the validity and
enforceability  of this  Indenture,  the Notes,  the  Collateral  and each other
instrument or agreement included in the Indenture Trust Estate.

                  SECTION 3.5 Protection of Indenture  Trust Estate.  The Issuer
shall from time to time execute and deliver all such  supplements and amendments
hereto and all such financing statements,  continuation statements,  instruments
of further  assurance  and other  instruments,  and shall take such other action
necessary or advisable to:

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

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

                           (iii)  enforce any of the Collateral; or

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

The   Issuer   hereby   designates   the   Indenture   Trustee   its  agent  and
attorney-in-fact to execute any financing statement,  continuation  statement or
other instrument required to be executed pursuant to this Section 3.5; provided,
however,  that the  Indenture  Trustee  shall be under no obligation to file any
such financing statement, continuation statement or other instrument required to
be executed pursuant to this Section 3.5.
<PAGE>

                  SECTION 3.6 Opinions as to Indenture Trust Estate.  (a) On the
Closing Date,  the Issuer shall  furnish to the Indenture  Trustee an Opinion of
Counsel  either  stating that,  in the opinion of such counsel,  such action has
been  taken with  respect to the  recording  and filing of this  Indenture,  any
indentures  supplemental  hereto,  and any other requisite  documents,  and with
respect to the execution and filing of any financing statements and continuation
statements, as are necessary to perfect and make effective the lien and security
interest of this  Indenture and reciting the details of such action,  or stating
that, in the opinion of such  counsel,  no such action is necessary to make such
lien and security interest effective.

                  (b) On or before April 30 in each calendar year,  beginning in
2001,  the Issuer shall furnish to the  Indenture  Trustee an Opinion of Counsel
either stating that, in the opinion of such counsel,  such action has been taken
with  respect  to the  recording,  filing,  re-recording  and  refiling  of this
Indenture,  any indentures supplemental hereto and any other requisite documents
and with respect to the  execution and filing of any  financing  statements  and
continuation  statements  and any other action that may be required by law as is
necessary to maintain the lien and security  interest  created by this Indenture
and  reciting  the details of such action or stating that in the opinion of such
counsel no such action is necessary to maintain such lien and security interest.
Such Opinion of Counsel shall also describe the recording,  filing, re-recording
and refiling of this Indenture, any indentures supplemental hereto and any other
requisite documents and the execution and filing of any financing statements and
continuation  statements that shall, in the opinion of such counsel, be required
to maintain the lien and security  interest of this Indenture  until April 30 in
the following calendar year.

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

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

                  (c) The Issuer shall 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 Indenture Trust
Estate,  including,  but not  limited  to,  filing  or  causing  to be filed all
financing statements and continuation  statements required to be filed under the
UCC 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 and the  Noteholders  of
Notes  evidencing  not less than a majority of the Note Balance of each Class of
Notes then Outstanding, voting separately.

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

                  (e) As  promptly  as  possible  after the  giving of notice of
termination  to the  Servicer of the  Servicer's  rights and powers  pursuant to
Section 8.1 of the Sale and Servicing Agreement or the Servicer's resignation in
accordance with the terms of the Sale and Servicing Agreement,  the Issuer shall
appoint a Successor  Servicer meeting the requirements of the Sale and Servicing
Agreement, and such Successor Servicer shall accept its appointment by a written
assumption in a form  acceptable to the Indenture  Trustee.  In the event that a
Successor  Servicer has not been appointed at the time when the Servicer  ceases
to  act  as  Servicer,  the  Indenture  Trustee  without  further  action  shall
automatically  be appointed the  Successor  Servicer.  If the Indenture  Trustee
shall be  legally  unable  to act as  Successor  Servicer,  it may  appoint,  or
petition a court of competent jurisdiction to appoint, a Successor Servicer. The
Indenture  Trustee may resign as the Servicer by giving  written  notice of such
resignation  to the Issuer and in such event shall be released  from such duties
and obligations,  such release not to be effective until the date a new servicer
enters  into a  servicing  agreement  with the Issuer as  provided  below.  Upon
delivery  of any such  notice  to the  Issuer,  the  Issuer  shall  obtain a new
servicer as the Successor Servicer under the Sale and Servicing  Agreement.  Any
Successor   Servicer  (other  than  the  Indenture  Trustee)  shall  (i)  be  an
established  institution  having a net worth of not less than  $100,000,000  and
whose regular business shall include the servicing of automotive receivables and
(ii) enter into a servicing  agreement with the Issuer having  substantially the
same provisions as the provisions of the Sale and Servicing Agreement applicable
to the  Servicer.  If,  within thirty (30) days after the delivery of the notice
referred to above,  the Issuer shall not have obtained such a new servicer,  the
Indenture Trustee may appoint, or may petition a court of competent jurisdiction
to appoint, a Successor Servicer.  In connection with any such appointment,  the
Indenture  Trustee  may make  such  arrangements  for the  compensation  of such
successor as it and such successor  shall agree,  subject to the limitations set
forth below and in the Sale and Servicing  Agreement,  and, in  accordance  with
Section 8.2 of the Sale and Servicing Agreement,  the Issuer shall enter into an
agreement  with  such  successor  for the  servicing  of the  Receivables  (such
agreement to be in form and substance satisfactory to the Indenture Trustee). If
the Indenture  Trustee shall succeed to the Servicer's duties as servicer of the
Receivables as provided  herein,  it shall do so in its individual  capacity and
not in its capacity as Indenture  Trustee and,  accordingly,  the  provisions of
Article VI hereof shall be inapplicable  to the Indenture  Trustee in its duties
as the successor to the Servicer and the servicing of the  Receivables.  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 any one of its Affiliates;  provided that the Indenture Trustee, in its
capacity as the Servicer, shall be fully liable for the actions and omissions of
such Affiliate in such capacity as Successor Servicer.

<PAGE>

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

                  (g)  Without  derogating  from  the  absolute  nature  of  the
assignment  granted to the Indenture  Trustee under this Indenture or the rights
of the Indenture Trustee hereunder,  the Issuer hereby agrees that it shall not,
without the prior written consent of the Indenture Trustee or the Noteholders of
Notes  evidencing  not  less  than a  majority  in  Note  Balance  of the  Notes
Outstanding, amend, modify, waive, supplement,  terminate or surrender, or agree
to any amendment, modification, supplement, termination, waiver or surrender of,
the terms of any Collateral (except to the extent otherwise provided in the Sale
and Servicing Agreement or the other Basic Documents).

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

                           (i) except as expressly  permitted by this Indenture,
                  the Trust  Agreement,  the Purchase  Agreement or the Sale and
                  Servicing  Agreement,  sell,  transfer,  exchange or otherwise
                  dispose  of any of the  properties  or assets  of the  Issuer,
                  including those included in the Indenture Trust Estate, unless
                  directed to do so by the Indenture Trustee;

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

                           (iii)  dissolve or liquidate in whole or in part; or
<PAGE>

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

                  SECTION  3.9 Annual  Statement  as to  Compliance.  The Issuer
shall  deliver to the Indenture  Trustee,  within 120 days after the end of each
calendar year, 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 its 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 its  compliance
                  with any such  condition  or  covenant,  specifying  each such
                  default  known to such  Authorized  Officer and the nature and
                  status thereof.
<PAGE>

                  SECTION 3.10  Issuer May Consolidate, etc., Only on Certain
Terms.  (a)  The Issuer shall not consolidate or merge with or into any other
Person, unless:

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

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

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

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

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

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

                  (b)  Other  than as  specifically  contemplated  by the  Basic
Documents,  the Issuer  shall not convey or transfer  any of its  properties  or
assets,  including those included in the Indenture Trust Estate,  to any Person,
unless:

<PAGE>

                           (i)  the  Person  that   acquires  by  conveyance  or
                  transfer  the   properties   and  assets  of  the  Issuer  the
                  conveyance or transfer of which is hereby restricted shall (A)
                  be a United States citizen or a Person  organized and existing
                  under the laws of the  United  States of America or any State,
                  (B) expressly assumes,  by an indenture  supplemental  hereto,
                  executed  and  delivered  to the  Indenture  Trustee,  in form
                  satisfactory  to the Indenture  Trustee,  the due and punctual
                  payment of the  principal of and interest on all Notes and the
                  performance  or observance of every  agreement and covenant of
                  this  Indenture  on the part of the Issuer to be  performed or
                  observed,  all as provided  herein,  (C)  expressly  agrees by
                  means of such supplemental indenture that all right, title and
                  interest  so  conveyed  or  transferred  shall be subject  and
                  subordinate to the rights of Noteholders, (D) unless otherwise
                  provided in such supplemental  indenture,  expressly agrees 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  agrees 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
                  transaction,  no  Default  or  Event  of  Default  shall  have
                  occurred and be continuing;

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

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

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

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

                  SECTION   3.11   Successor   or   Transferee.   (a)  Upon  any
consolidation  or merger of the Issuer in accordance with Section  3.10(a),  the
Person formed by or surviving  such  consolidation  or merger (if other than the
Issuer) shall succeed to, and be  substituted  for, and may exercise every right
and power of, the Issuer  under this  Indenture  with the same effect as if such
Person had been named as the Issuer herein.

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

                  SECTION 3.12 No Other Business. The Issuer shall not engage in
any  business  other  than  financing,   acquiring,   owning  and  pledging  the
Receivables in the manner contemplated by this Indenture and the Basic Documents
and activities incidental thereto.

                  SECTION 3.13 No Borrowing.  The Issuer shall not issue, incur,
assume,  guarantee or otherwise become liable,  directly or indirectly,  for any
indebtedness except for the Notes and the Certificates.

                  SECTION 3.14  Servicer's  Obligations.  The Issuer shall cause
the Servicer to comply with the Sale and Servicing Agreement, including Sections
3.9, 3.10, 3.11, 3.12, 3.13 and 4.9 and Article VII thereof.

                  SECTION   3.15   Guarantees,   Loans,   Advances   and   Other
Liabilities.  Except as  contemplated  by this  Indenture  and the  other  Basic
Documents,  the  Issuer  shall not make any loan or  advance  or  credit  to, or
guarantee  (directly  or  indirectly  or by an  instrument  having the effect of
assuring  another's payment or performance on any obligation or capability of so
doing or otherwise),  endorse or otherwise become contingently liable,  directly
or indirectly,  in connection with the  obligations,  stocks or dividends of, or
own, purchase, repurchase or acquire (or agree contingently to do so) any stock,
obligations,  assets or  securities  of, or any other  interest  in, or make any
capital contribution to, any other Person.

                  SECTION 3.16 Capital  Expenditures.  The Issuer shall not make
any  expenditure  (by  long-term or operating  lease or  otherwise)  for capital
assets (either realty or personalty).

                  SECTION 3.17 Further Instruments and Acts. Upon request of the
Indenture Trustee, the Issuer shall 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.

<PAGE>

                  SECTION  3.18  Restricted  Payments.  The  Issuer  shall  not,
directly or indirectly,  (i) 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  or the  Administrator,  (ii)  redeem,  purchase,
retire or otherwise  acquire for value any such ownership or equity  interest or
security  or (iii) set aside or  otherwise  segregate  any  amounts for any such
purpose;  provided,  however, that the Issuer may make, or cause to be made, (x)
payments to the Servicer,  the Administrator,  the Owner Trustee,  the Indenture
Trustee, the Noteholders and the  Certificateholders  as contemplated by, and to
the extent funds are available for such purpose  under,  this  Indenture and the
other Basic  Documents  and (y) payments to the  Indenture  Trustee  pursuant to
Section 2(a)(ii) of the Administration Agreement. The Issuer shall not, directly
or indirectly,  make payments to or distributions from the Collection Account or
the Principal  Distribution Account except in accordance with this Indenture and
the other Basic Documents.

                  SECTION  3.19  Notice of Events of Default.  The Issuer  shall
give the Indenture Trustee and the Rating Agencies prompt written notice of each
Event of Default  hereunder  and of each default on the part of any party to the
Sale and Servicing  Agreement or the Purchase  Agreement  with respect to any of
the provisions thereof.

                  SECTION  3.20  Removal  of  Administrator.  For so long as any
Notes are  Outstanding,  the Issuer shall not remove the  Administrator  without
cause unless the Rating Agency Condition shall have been satisfied in connection
therewith.

<PAGE>

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

                  SECTION 4.1  Satisfaction  and  Discharge of  Indenture.  This
Indenture  shall cease to be of further  effect with respect to the Notes except
as to (i) rights of registration of transfer and exchange,  (ii) substitution of
mutilated,  destroyed,  lost or stolen  Notes,  (iii) rights of  Noteholders  to
receive payments of principal thereof and interest  thereon,  (iv) Sections 3.3,
3.4, 3.5, 3.8, 3.10,  3.12 and 3.13, (v) the rights,  obligations and immunities
of the  Indenture  Trustee  hereunder  (including  the  rights of the  Indenture
Trustee under  Section 6.7 and the  obligations  of the Indenture  Trustee under
Section 4.3), and (vi) the rights of Noteholders  as  beneficiaries  hereof with
respect to the property so deposited with the Indenture  Trustee  payable to all
or any of them,  and the Indenture  Trustee,  on demand of and at the expense of
the Issuer,  shall execute proper  instruments  acknowledging  satisfaction  and
discharge of this Indenture with respect to the Notes, when:

                  (A)  either

                           (2) 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 2.6
                  and (ii) Notes for whose  payment money has  theretofore  been
                  deposited  in  trust  or  segregated  and held in trust by the
                  Issuer and thereafter  repaid to the Issuer or discharged from
                  such trust, as provided in Section 3.3) have been delivered to
                  the Indenture Trustee for cancellation; or

                           (3)  all  Notes  not  theretofore  delivered  to  the
                  Indenture Trustee for cancellation have become due and payable
                  and the  Issuer  has  irrevocably  deposited  or  caused to be
                  irrevocably  deposited  with  the  Indenture  Trustee  cash or
                  direct obligations of or obligations  guaranteed by the United
                  States of America  (which will  mature  prior to the date such
                  amounts are payable),  in trust for such purpose, in an amount
                  sufficient  without  reinvestment  to pay  and  discharge  the
                  entire indebtedness on such Notes not theretofore delivered to
                  the  Indenture  Trustee  for  cancellation  when  due  to  the
                  applicable  Final  Scheduled  Distribution  Date or Redemption
                  Date (if Notes shall have been called for redemption  pursuant
                  to Section 10.1(a)),  as the case may be, and all fees due and
                  payable to the Indenture Trustee;

<PAGE>

                  (B) the  Issuer  has paid or caused to be paid all other  sums
                  payable  hereunder and under any of the other Basic  Documents
                  by the Issuer;

                  (C) the  Issuer  has  delivered  to the  Indenture  Trustee an
                  Officer's Certificate,  an Opinion of Counsel and (if required
                  by  the  TIA  or  the   Indenture   Trustee)  an   Independent
                  Certificate from a firm of certified public accountants,  each
                  meeting the applicable  requirements  of Section  11.1(a) and,
                  subject to Section  11.2,  each  stating  that all  conditions
                  precedent herein provided for relating to the satisfaction and
                  discharge of this Indenture have been complied with; and

                  (D) the  Issuer  has  delivered  to the  Indenture  Trustee an
                  Opinion of Counsel to the  effect  that the  satisfaction  and
                  discharge  of the Notes  pursuant to this Section 4.1 will not
                  cause any Noteholder to be treated as having sold or exchanged
                  any of its Notes for purposes of Section 1001 of the Code.

Upon the  satisfaction  and discharge of the Indenture  pursuant to this Section
4.1, at the request of the Owner Trustee, the Indenture Trustee shall deliver to
the  Owner  Trustee  a  certificate  of  a  Trustee  Officer  stating  that  all
Noteholders have been paid in full and stating whether, to the best knowledge of
such Trustee  Officer,  any claims  remain  against the Issuer in respect of the
Indenture and the Notes.
<PAGE>

                  SECTION 4.2 Satisfaction, Discharge and Defeasance of Notes.

                  (a)  Upon   satisfaction   of  the  conditions  set  forth  in
subsection (b) below, the Issuer shall be deemed to have paid and discharged the
entire  indebtedness  on all the Outstanding  Notes,  and the provisions of this
Indenture,  as it relates to such  Notes,  shall no longer be in effect (and the
Indenture  Trustee,  at  the  expense  of  the  Issuer,   shall  execute  proper
instruments  acknowledging the same), 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 3.2, 3.3, 3.4, 3.5, 3.8, 3.10,  3.12 and 3.13,
(v) the rights,  obligations and immunities of the Indenture  Trustee  hereunder
(including  the  rights  of the  Indenture  Trustee  under  Section  6.7 and the
obligations of the Indenture  Trustee under Section 4.3), and (vi) the rights of
Noteholders  as  beneficiaries  hereof with respect to the property so deposited
with the Indenture Trustee payable to all or any of them.

                  (b) The  satisfaction,  discharge and  defeasance of the Notes
pursuant to subsection (a) of this Section 4.2 is subject to the satisfaction of
all of the following conditions:

                           (i)  the  Issuer  has   deposited  or  caused  to  be
                  deposited irrevocably (except as provided in Section 4.4) with
                  the  Indenture  Trustee as trust funds in trust,  specifically
                  pledged as security for, and dedicated  solely to, the benefit
                  of the Noteholders, which, through the payment of interest and
                  principal in respect  thereof in  accordance  with their terms
                  will provide,  not later than one day prior to the due date of
                  any payment referred to below,  money in an amount sufficient,
                  in the opinion of a nationally  recognized firm of independent
                  certified   public   accountants   expressed   in  a   written
                  certification  thereof delivered to the Indenture Trustee,  to
                  pay and discharge the entire  indebtedness  on the Outstanding
                  Notes, for principal  thereof and interest thereon to the date
                  of such deposit (in the case of Notes that have become due and
                  payable) or to the maturity of such principal and interest, as
                  the case may be;

<PAGE>

                           (ii)  such  deposit  will not  result  in a breach or
                  violation  of, or constitute  an event of default  under,  any
                  other agreement or instrument to which the Issuer is bound;

                           (iii) no Event of Default  with  respect to the Notes
                  shall  have  occurred  and be  continuing  on the date of such
                  deposit or on the ninety-first (91st) day after such date;

                           (iv)  the  Issuer  has  delivered  to  the  Indenture
                  Trustee  an  Opinion  of  Counsel  to  the  effect   that  the
                  satisfaction,  discharge and  defeasance of the Notes pursuant
                  to this  Section  4.2  will not  cause  any  Noteholder  to be
                  treated  as  having  sold or  exchanged  any of its  Notes for
                  purposes of Section 1001 of the Code; and

                           (v) the Issuer has delivered to the Indenture Trustee
                  an  Officer's  Certificate  and an  Opinion of  Counsel,  each
                  stating  that  all  conditions   precedent   relating  to  the
                  defeasance contemplated by this Section 4.2 have been complied
                  with.

                  SECTION 4.3 Application of Trust Money.  All monies  deposited
with the  Indenture  Trustee  pursuant to Sections  4.1 and 4.2 shall be held in
trust and applied by it, in accordance with the provisions of the Notes and this
Indenture,  to the payment, either directly or through any Note Paying Agent, as
the Indenture Trustee may determine,  to the Noteholders of the particular Notes
for the payment or redemption of which such monies have been  deposited with the
Indenture  Trustee,  of all sums due and to become due thereon for principal and
interest,  but such monies need not be segregated from other funds except to the
extent  required  herein or in the Sale and  Servicing  Agreement or required by
law.

                  SECTION 4.4 Repayment of Monies Held by Note Paying Agent.  In
connection with the satisfaction and discharge of this Indenture with respect to
the  Notes,  all  monies  then  held by any Note  Paying  Agent  other  than the
Indenture  Trustee under the  provisions of this  Indenture with respect to such
Notes shall,  upon demand of the Issuer,  be paid to the Indenture Trustee to be
held and applied  according to Section 3.3 and thereupon  such Note Paying Agent
shall be released from all further liability with respect to such monies.

<PAGE>

                                    ARTICLE V

                                    REMEDIES

                  SECTION 5.1 Events of Default.  "Event of  Default,"  wherever
used herein,  means the occurrence of any one of the following  events (whatever
the  reason  for such Event of Default  and  whether  it shall be  voluntary  or
involuntary  or be effected  by  operation  of law or pursuant to any  judgment,
decree  or  order  of  any  court  or  any  order,  rule  or  regulation  of any
administrative or governmental body):

                           (i)  default in the  payment of any  interest  on any
                  Note of the  Controlling  Note Class when the same becomes due
                  and payable on each Distribution  Date, and such default shall
                  continue for a period of five (5) days or more; or

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

                           (iii) default in the observance or performance of any
                  material  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 5.1 specifically dealt with), or any representation or
                  warranty  of the  Issuer  made  in  this  Indenture  or in any
                  certificate or other writing  delivered  pursuant hereto or in
                  connection  herewith  proving  to have been  incorrect  in any
                  material  respect as of the time when the same shall have been
                  made, and such default shall continue or not be cured,  or the
                  circumstance   or   condition   in   respect   of  which  such
                  misrepresentation  or warranty  was  incorrect  shall not have
                  been eliminated or otherwise cured, for a period of sixty (60)
                  days or in the case of a materially  incorrect  representation
                  and  warranty  thirty  (30) days,  after there shall have been
                  given,  by registered or certified  mail, to the Issuer by the
                  Indenture  Trustee or to the Issuer and the Indenture  Trustee
                  by the  Noteholders  of Notes  evidencing not less than 25% of
                  the Note  Balance of the  Controlling  Note  Class,  a written
                  notice specifying such default or incorrect  representation or
                  warranty and requiring it to be remedied and stating that such
                  notice is a "Notice of Default" hereunder; or

<PAGE>

                           (iv) the  filing of a decree or order for relief by a
                  court  having  jurisdiction  in the premises in respect of the
                  Issuer or any  substantial  part of the Indenture Trust Estate
                  in an involuntary  case under any applicable  federal or State
                  bankruptcy,  insolvency  or other similar law now or hereafter
                  in effect,  or  appointing a receiver,  liquidator,  assignee,
                  custodian,  trustee,  sequestrator or similar  official of the
                  Issuer  or for any  substantial  part of the  Indenture  Trust
                  Estate,  or ordering  the  winding-up  or  liquidation  of the
                  Issuer's  affairs,  and  such  decree  or order  shall  remain
                  unstayed and in effect for a period of sixty (60)  consecutive
                  days; or

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

The Issuer shall deliver to the Indenture  Trustee (with a copy to any Qualified
Institution  or  Qualified  Trust  Institution  (if not the  Indenture  Trustee)
maintaining  any Trust  Accounts),  within  five (5) days  after the  occurrence
thereof,  written  notice in the form of an Officer's  Certificate  of any event
which with the  giving of notice and the lapse of time would  become an Event of
Default  under  clause  (iii)  above,  its status and what  action the Issuer is
taking or proposes to take with respect thereto.

                  SECTION  5.2   Acceleration   of  Maturity;   Rescission   and
Annulment.  (a) If an Event of Default should occur and be continuing,  then and
in every such case the Indenture  Trustee or the Noteholders of Notes evidencing
not less than a majority of the Note Balance of the  Controlling  Note Class may
declare all the Notes to be immediately due and payable,  by a notice in writing
to the Issuer (and to the Indenture  Trustee if given by Noteholders),  and upon
any such declaration the unpaid  principal  amount of such Notes,  together with
accrued and unpaid  interest  thereon  through the date of  acceleration,  shall
become immediately due and payable.
<PAGE>

                  (b) At  any  time  after  a  declaration  of  acceleration  of
maturity has been made and before a judgment or decree for payment of the amount
due has been obtained by the Indenture  Trustee as hereinafter  provided in this
Article V, the  Noteholders of Notes  evidencing not less than a majority of the
Note Balance of the Controlling  Note Class, by written notice to the Issuer and
the  Indenture  Trustee,   may  rescind  and  annul  such  declaration  and  its
consequences if:

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

                                    (A)  all   payments  of   principal  of  and
                  interest on all Notes and all other amounts that would then be
                  due  hereunder  or upon  such  Notes if the  Event of  Default
                  giving rise to such acceleration had not occurred; and

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

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

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

                  SECTION  5.3   Collection  of   Indebtedness   and  Suits  for
Enforcement by Indenture Trustee.  (a) The Issuer covenants that if (i) there is
an Event of Default  relating to the nonpayment of any interest on any Note when
the same  becomes due and  payable,  and such Event of Default  continues  for a
period of five (5) days,  or (ii) there is an Event of Default  relating  to the
nonpayment  in  the  payment  of the  principal  of or  any  installment  of the
principal of any Note when the same becomes due and payable,  the Issuer  shall,
upon demand of the  Indenture  Trustee,  pay to the Indenture  Trustee,  for the
benefit of the Noteholders,  the whole amount then due and payable on such Notes
for principal and interest, with interest upon the overdue principal and, to the
extent  payment  at such rate of  interest  shall be legally  enforceable,  upon
overdue  installments  of interest at the applicable Note Interest Rate borne by
the Notes and in addition  thereto such further amount as shall be sufficient to
cover  the  costs  and  expenses  of   collection,   including  the   reasonable
compensation,  expenses, disbursements and advances of the Indenture Trustee and
its agents, attorneys and counsel.

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

                  (c) If an Event  of  Default  occurs  and is  continuing,  the
Indenture  Trustee,  as  more  particularly  provided  in  Section  5.4,  in its
discretion,  may proceed to protect and enforce its rights and 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.
<PAGE>

                  (d) In case there shall be pending,  relative to the Issuer or
any other  obligor upon the Notes or any Person  having or claiming an ownership
interest in the Indenture Trust Estate, Proceedings under Title 11 of the United
States Code or any other applicable  federal or State bankruptcy,  insolvency or
other  similar law, or in case a receiver,  assignee or trustee in bankruptcy or
reorganization,  liquidator,  sequestrator  or similar  official shall have been
appointed  for or taken  possession  of the Issuer or its property or such other
obligor  or  Person,  or in case of any other  comparable  judicial  Proceedings
relative to the Issuer or other  obligor upon the Notes,  or to the creditors or
property  of  the  Issuer  or  such  other  obligor,   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 5.3,  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,  and all advances  and  disbursements  made,  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  Noteholders  in any
                  election of a trustee,  a standby trustee or Person performing
                  similar functions in any such Proceedings;

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

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

and any trustee,  receiver,  liquidator,  custodian or other similar official in
any such  Proceeding is hereby  authorized by each of such  Noteholders  to make
payments to the Indenture  Trustee and, in the event that the Indenture  Trustee
shall consent to the making of payments directly to such Noteholders,  to pay to
the Indenture  Trustee such amounts as shall be  sufficient to cover  reasonable
compensation to the Indenture  Trustee,  each predecessor  Indenture Trustee and
their  respective  agents,  attorneys  and counsel,  and all other  expenses and
liabilities incurred,  and all advances and disbursements made, by the Indenture
Trustee and each predecessor Indenture Trustee, except as a result of negligence
or bad faith,  and any other  amounts  due the  Indenture  Trustee  pursuant  to
Section 6.7.

                  (e) Nothing herein  contained shall be deemed to authorize the
Indenture  Trustee to  authorize or consent to or vote for or accept or adopt on
behalf of any Noteholder any plan of reorganization,  arrangement, adjustment or
composition  affecting the Notes or the rights of any Noteholder 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.

                  (f) All rights of action and of  asserting  claims  under this
Indenture,  or under any of the Notes, may be enforced by the Indenture  Trustee
without  the  possession  of any of the Notes or the  production  thereof in any
trial or other Proceedings  relative thereto, and any such action or Proceedings
instituted by the Indenture  Trustee shall be brought in its own name as trustee
of an express trust, and any recovery of judgment, subject to the payment of the
expenses,   disbursements  and  compensation  of  the  Indenture  Trustee,  each
predecessor  Indenture  Trustee  and  their  respective  agents,  attorneys  and
counsel, shall be for the ratable benefit of the Noteholders in respect of which
such judgment has been recovered.

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

                  SECTION 5.4 Remedies;  Priorities.  (a) If an Event of Default
shall have occurred and be continuing,  the Indenture Trustee may do one or more
of the following (subject to Section 5.5):
<PAGE>

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

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

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

                           (iv) sell the  Indenture  Trust Estate or any portion
                  thereof or rights or interest  therein,  at one or more public
                  or private sales called and conducted in any manner  permitted
                  by law.

provided, however, the Indenture Trustee may not sell or otherwise liquidate the
Indenture Trust Estate unless:
<PAGE>

         (A) the Event of Default is of the type described in Section
5.1(i) or (ii); or

         (B) with respect to any Event of Default  described in Section  5.1(iv)
and (v):

                  (1)      the Noteholders of Notes evidencing 100% of the Note
                           Balance of the Controlling Note Class consent
                           thereto; or

                  (2)      the proceeds of such sale or liquidation are
                           sufficient to pay in full the principal of and the
                           accrued interest on the Outstanding Notes; or

                  (3)      the Indenture Trustee

                           (x)      determines  (but shall have no obligation to
                                    make such  determination) that the Indenture
                                    Trust  Estate  will not  continue to provide
                                    sufficient   funds   for  the   payment   of
                                    principal  of and  interest  on the Notes as
                                    they would have  become due if the Notes had
                                    not been declared due and payable; and

                           (y)      the Indenture Trustee obtains the consent of
                                    Noteholders of Notes evidencing not less
                                    than 662/3% of the Note Balance of the
                                    Controlling Note Class; or

         (C) with respect to an Event of Default described in Section 5.1(iii):

                  (1)      the Noteholders of all Outstanding Notes and the
                           Certificateholders of all outstanding Certificates
                           consent thereto; or

                  (2)      the  proceeds  of  such  sale  or   liquidation   are
                           sufficient  to  pay  in  full  the  principal  of and
                           accrued   interest  on  the  Outstanding   Notes  and
                           outstanding Certificates.
<PAGE>

In determining such sufficiency or insufficiency with respect to clauses (B)(2),
(C)(2) and (B)(3)(x) above, the Indenture  Trustee may, but need not, obtain and
rely upon an opinion of an Independent  investment banking or accounting firm of
national  reputation as to the feasibility of such proposed action and as to the
sufficiency of the Indenture Trust Estate for such purpose.

                  (b)  Notwithstanding  the  provisions  of Section  8.2, if the
Indenture  Trustee collects any money or property pursuant to this Article V, it
shall pay out the money or property in the following order:

                           (i)  first, to the Indenture Trustee for amounts due
                                under Section 6.7;

                           (ii)  second, to the Servicer for due and unpaid
                                 Servicing Fees;

                           (iii) third,  to Noteholders of the Class A Notes for
                  amounts  due and  unpaid  on the Class A Notes in  respect  of
                  interest, ratably, without preference or priority of any kind,
                  according  to the amounts due and payable on the Class A Notes
                  for interest;

                           (iv) fourth,  to  Noteholders  of the Class A-1 Notes
                  for  amounts  due  and  unpaid  on the  Class  A-1  Notes  for
                  principal,  ratably,  without  preference  or  priority of any
                  kind,  according  to the  amounts due and payable on the Class
                  A-1 Notes for  principal,  until the  principal  amount of the
                  Outstanding Class A-1 Notes is reduced to zero;

                           (v) fifth,  to Noteholders of the Class A-2 Notes for
                  amounts  due and unpaid on the Class A-2 Notes for  principal,
                  ratably, without preference or priority of any kind, according
                  to the  amounts  due and  payable  on the  Class A-2 Notes for
                  principal, until the principal amount of the Outstanding Class
                  A-2 Notes is reduced to zero;

                           (vi) sixth, to Noteholders of the Class A-3 Notes for
                  amounts  due and unpaid on the Class A-3 Notes for  principal,
                  ratably, without preference or priority of any kind, according
                  to the  amounts  due and  payable  on the  Class A-3 Notes for
                  principal, until the principal amount of the Outstanding Class
                  A-3 Notes is reduced to zero;
<PAGE>

                           (vii) seventh,  to Noteholders of the Class A-4 Notes
                  for  amounts  due  and  unpaid  on the  Class  A-4  Notes  for
                  principal,  ratably,  without  preference  or  priority of any
                  kind,  according  to the  amounts due and payable on the Class
                  A-4 Notes for  principal,  until the  principal  amount of the
                  Outstanding Class A-4 Notes is reduced to zero;

                           (viii) eighth, to Noteholders of the Class A-5 Notes
                  for amounts due and unpaid on the Class A-5 Notes for
                  principal,  ratably, without  preference  or priority of any
                  kind,  according to the amounts due and  payable  on the
                  Class  A-5  Notes  for  principal,  until the principal amount
                  of the Outstanding Class A-5 Notes is reduced to zero;

                           (ix) ninth, to Noteholders of the Class B Notes for
                  amounts  due and unpaid on the Class B Notes in  respect  of
                  interest, ratably,  without preference or priority of any
                  kind,  according to the amounts due and payable on the Class B
                  Notes for interest;

                           (x) tenth,  to  Noteholders  of the Class B Notes for
                  amounts  due and  unpaid on the  Class B Notes for  principal,
                  ratably, without preference or priority of any kind, according
                  to the  amounts  due and  payable  on the  Class  B Notes  for
                  principal, until the principal amount of the Outstanding Class
                  B Notes is reduced to zero;

                           (xi)  eleventh, to the Issuer for amounts required to
                   be distributed to the Certificateholders pursuant to the
                   Trust Agreement and the Sale and Servicing Agreement; and

                           (xii) twelfth,  to the Seller,  any money or property
                  remaining  after  payment in full of the amounts  described in
                  clauses (i)-(xi) of this Section 5.4(b).
<PAGE>

The Indenture  Trustee may fix a record date and payment date for any payment to
Noteholders pursuant to this Section 5.4. At least fifteen (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.

                  (c) Upon a sale or other liquidation of the Receivables in the
manner  set  forth in  Section  5.4(a),  the  Indenture  Trustee  shall  provide
reasonable  prior  notice of such sale or  liquidation  to each  Noteholder  and
Certificateholder.  A  Noteholder  or  Certificateholder  may  submit a bid with
respect to such sale.

                  SECTION 5.5 Optional  Preservation of the Receivables.  If the
Notes have been  declared to be due and payable  under  Section 5.2 following an
Event  of  Default,  and such  declaration  and its  consequences  have not been
rescinded  and  annulled,  the  Indenture  Trustee may,  but need not,  elect to
maintain possession of the Indenture Trust Estate and apply proceeds as if there
had been no  declaration  of  acceleration;  provided,  however,  that  funds on
deposit in the Collection  Account at the time the Indenture  Trustee makes such
election  or  deposited  therein  during  the  Collection  Period in which  such
election is made (including  funds, if any,  deposited  therein from the Reserve
Account  and the  Payahead  Account)  shall be applied in  accordance  with such
declaration  of  acceleration  in the manner  specified in Section 4.6(c) of the
Sale and  Servicing  Agreement.  It is the desire of the parties  hereto and the
Noteholders  that  there be at all times  sufficient  funds for the  payment  of
principal of and interest on the Notes,  and the  Indenture  Trustee  shall take
such desire into account when determining  whether or not to maintain possession
of the Indenture Trust Estate. In determining  whether to maintain possession of
the Indenture Trust Estate,  the Indenture Trustee may, but need not, obtain and
rely upon an opinion of an Independent  investment banking or accounting firm of
national  reputation as to the feasibility of such proposed action and as to the
sufficiency of the Indenture Trust Estate for such purpose.

                  SECTION 5.6 Limitation of Suits. No Noteholder  shall have any
right to institute any Proceeding,  judicial or otherwise,  with respect to this
Indenture  or for the  appointment  of a receiver or  trustee,  or for any other
remedy hereunder, unless:

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

                  (b) the  Noteholders of Notes  evidencing not less than 25% of
the Note Balance of the Controlling  Note 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;

                  (c)  such  Noteholder  or  Noteholders  have  offered  to  the
Indenture  Trustee  reasonable   indemnity  against  the  costs,   expenses  and
liabilities to be incurred in complying with such request;
<PAGE>

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

                  (e) no direction  inconsistent  with such written  request has
been  given  to the  Indenture  Trustee  during  such  sixty-day  period  by the
Noteholders of Notes  evidencing not less than a majority of the Note Balance of
the Controlling Note Class.

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

                  In the event the Indenture  Trustee shall receive  conflicting
or  inconsistent  requests and indemnity from two or more groups of Noteholders,
each evidencing less than a majority of the Note Balance of the Controlling Note
Class,  the Indenture  Trustee in its sole discretion may determine what action,
if any, shall be taken, notwithstanding any other provisions of this Indenture.

                  SECTION 5.7  Unconditional  Rights of  Noteholders  To Receive
Principal and Interest.  Notwithstanding any other provisions in this Indenture,
any Noteholder  shall have the right,  which is absolute and  unconditional,  to
receive  payment of the  principal  of and  interest,  if any, on its Note on or
after  the  respective  due  dates  thereof  expressed  in such  Note or in this
Indenture (or, in the case of redemption,  on or after the Redemption  Date) and
to institute suit for the enforcement of any such payment,  and such right shall
not be impaired without the consent of such Noteholder.

                  SECTION  5.8  Restoration  of  Rights  and  Remedies.  If  the
Indenture Trustee or any Noteholder has instituted any Proceeding to enforce any
right or remedy under this Indenture and such  Proceeding has been  discontinued
or abandoned  for any reason or has been  determined  adversely to the Indenture
Trustee  or to such  Noteholder,  then and in every  such case the  Issuer,  the
Indenture  Trustee and the Noteholders  shall,  subject to any  determination in
such  Proceeding,  be  restored  severally  and  respectively  to  their  former
positions  hereunder,  and  thereafter  all rights and remedies of the Indenture
Trustee and the Noteholders shall continue as though no such Proceeding had been
instituted.
<PAGE>

                  SECTION 5.9 Rights and Remedies Cumulative. No right or remedy
herein conferred upon or reserved to the Indenture Trustee or to the Noteholders
is intended to be  exclusive  of any other right or remedy,  and every right and
remedy shall,  to the extent  permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law
or in equity or  otherwise.  The  assertion or employment of any right or remedy
hereunder,  or  otherwise,   shall  not  prevent  the  concurrent  assertion  or
employment of any other appropriate right or remedy.

                  SECTION  5.10  Delay or  Omission  Not a  Waiver.  No delay or
omission of the  Indenture  Trustee or any  Noteholder  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 any
acquiescence  therein.  Every right and remedy given by this Article V or by law
to the Indenture  Trustee or to the  Noteholders  may be exercised  from time to
time, and as often as may be deemed  expedient,  by the Indenture  Trustee or by
the Noteholders, as the case may be.

                  SECTION 5.11 Control by Controlling Note Class of Noteholders.
The Noteholders of Notes evidencing not less than a majority of the Note Balance
of the  Controlling  Note Class shall have the right to direct the time,  method
and place of conducting any Proceeding for any remedy available to the Indenture
Trustee with respect to the Notes or exercising any trust or power  conferred on
the Indenture Trustee; provided that:

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

                  (b) subject to the express terms of Section 5.4, any direction
to the Indenture  Trustee to sell or liquidate the Indenture  Trust Estate shall
be by Noteholders of Notes  evidencing not less than 100% of the Note Balance of
the Controlling Note Class;

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

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

Notwithstanding  the  rights  of  Noteholders  set forth in this  Section  5.11,
subject to Section 6.1, the  Indenture  Trustee need not take any action that it
determines  might  involve  it in costs or  expenses  for  which it would not be
adequately  indemnified or expose it to personal  liability or might  materially
adversely  affect  or  unduly  prejudice  the  rights  of  any  Noteholders  not
consenting to such action.

                  SECTION 5.12 Waiver of Past Defaults. Prior to the declaration
of the acceleration of the maturity of the Notes as provided in Section 5.2, the
Noteholders of Notes  evidencing not less than a majority of the Note Balance of
the  Controlling  Note Class may waive any past  Default or Event of Default and
its consequences except a Default (a) in the payment of principal of or interest
on any of the Notes or (b) in respect of a covenant  or  provision  hereof  that
cannot  be  amended,  supplemented  or  modified  without  the  consent  of each
Noteholder.  In the case of any such waiver,  the Issuer,  the Indenture Trustee
and the  Noteholders  shall be restored  to their  former  positions  and rights
hereunder,  respectively;  but no such waiver shall extend to any  subsequent or
other Default or impair any right consequent thereto.
<PAGE>

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

                  SECTION  5.13  Undertaking  for  Costs.  All  parties  to this
Indenture agree,  and each Noteholder by such  Noteholder'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 5.13 shall not apply to (a) any suit  instituted  by
the Indenture  Trustee,  (b) any suit  instituted by any  Noteholder or group of
Noteholders,  in  each  case  holding  in the  aggregate  more  than  10% of the
principal  amount of the Notes  Outstanding (or in the case of a right or remedy
under this Indenture  which is instituted by the  Controlling  Note Class,  more
than  10% of the  Controlling  Note  Class)  or (c) any suit  instituted  by any
Noteholder for the enforcement of the payment of principal of or interest on any
Note on or after the  respective  due dates  expressed  in such Note and in this
Indenture (or, in the case of redemption, on or after the Redemption Date).

                  SECTION  5.14  Waiver of Stay or  Extension  Laws.  The Issuer
covenants  (to the extent  that it may  lawfully do so) that it shall not at any
time  insist  upon,  or plead  or in any  manner  whatsoever,  claim or take the
benefit or advantage of, any stay or extension law wherever  enacted,  now or at
any time hereafter in force, that may affect the covenants or the performance of
this Indenture, and the Issuer (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and covenants that it
shall 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.
<PAGE>

                  SECTION 5.15 Action on Notes. The Indenture Trustee's right to
seek and  recover  judgment  on the Notes or under this  Indenture  shall not be
affected by the seeking,  obtaining or  application of any other relief under or
with  respect to this  Indenture.  Neither  the lien of this  Indenture  nor any
rights or remedies of the Indenture Trustee or the Noteholders shall be impaired
by the recovery of any judgment by the Indenture  Trustee  against the Issuer or
by the  levy of any  execution  under  such  judgment  upon any  portion  of the
Indenture  Trust  Estate or upon any of the assets of the  Issuer.  Any money or
property  collected by the Indenture Trustee shall be applied in accordance with
Section 5.4(b).

                  SECTION   5.16   Performance   and   Enforcement   of  Certain
Obligations.  (a) Promptly  following a request from the Indenture Trustee to do
so, and at the  Administrator's  expense,  the Issuer shall take all such lawful
action as the Indenture  Trustee may request to compel or secure the performance
and observance by the Seller and the Servicer,  as applicable,  of each of their
obligations  to the Issuer under or in  connection  with the Sale and  Servicing
Agreement,  or by the Seller and Ford Credit,  as  applicable,  of each of their
obligations under or in connection with the Purchase Agreement,  and to exercise
any and all rights,  remedies,  powers and privileges  lawfully available to the
Issuer under or in  connection  with the Sale and  Servicing  Agreement  and the
Purchase Agreement, as the case may be, 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,  the  Servicer  or  Ford  Credit  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 or by the Seller or Ford Credit of each
of their obligations under the Purchase Agreement.

                  (b) If an Event of Default has occurred and is continuing, the
Indenture Trustee may, and at the direction (which direction shall be in writing
or by telephone, confirmed in writing promptly thereafter) of the Noteholders of
Notes  evidencing  not less than 662/3% of the Note  Balance of the  Controlling
Note Class shall, exercise all rights, remedies,  powers,  privileges and claims
of the Issuer against the Seller or the Servicer under or in connection with the
Sale and Servicing  Agreement,  or against the Seller or Ford Credit under or in
connection with the Purchase Agreement, including the right or power to take any
action to compel or secure performance or observance by the Seller, the Servicer
or Ford Credit,  as the case may be, 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  or the Purchase
Agreement,  as the case may be, and any right of the Issuer to take such  action
shall be suspended.

<PAGE>

                                   ARTICLE VI

                              THE INDENTURE TRUSTEE

                  SECTION 6.1 Duties of  Indenture  Trustee.  (a) If an Event of
Default has occurred and is continuing, the Indenture Trustee shall exercise the
rights and powers vested in it by this Indenture and 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.

                  (b)  Except during the continuance of an Event of Default:

                           (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,  if  required  by the  terms  of this
                  Indenture,  conforming to the  requirements of this Indenture;
                  provided,  however,  that the Indenture  Trustee shall examine
                  the certificates and opinions to determine whether or not they
                  conform to the requirements of this Indenture.
<PAGE>

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

                           (i)  this paragraph does not limit the effect of
                  paragraph (b) of this Section 6.1;

                           (ii) the  Indenture  Trustee  shall not be liable for
                  any error of judgment made in good faith by a Trustee  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 5.11.

                  (d) The Indenture  Trustee shall not be liable for interest on
any money  received by it except as the  Indenture  Trustee may agree in writing
with the Issuer.

                  (e) 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.

                  (f) 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
repayment of such funds or adequate  indemnity against such risk or liability is
not reasonably assured to it.

                  (g) Every provision of this Indenture  relating to the conduct
or affecting the liability of or affording  protection to the Indenture  Trustee
shall be subject to the  provisions of this Section 6.1 and to the provisions of
the TIA.

                  (h) The Indenture  Trustee shall not be charged with knowledge
of any Event of Default  unless  either (1) a Trustee  Officer shall have actual
knowledge  of such  Event of  Default  or (2)  written  notice of such  Event of
Default  shall have been given to the Indenture  Trustee in accordance  with the
provisions of this Indenture.

                  SECTION 6.2 Rights of  Indenture  Trustee.  (a) The  Indenture
Trustee may rely and shall be protected in acting or refraining from acting upon
any resolution,  certificate,  statement,  instrument,  opinion, report, notice,
request,  direction,  consent, order, bond, debenture 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 matters stated in
any such document.
<PAGE>

                  (b) Before the Indenture Trustee acts or refrains from acting,
it may require an Officer's  Certificate or an Opinion of Counsel. The Indenture
Trustee  shall  not be liable  for any  action it takes or omits to take in good
faith in reliance on an 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, or for
the supervision  of, any such agent,  attorney,  custodian or nominee  appointed
with due care by it hereunder.

                  (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 such action or omission by
the Indenture Trustee 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 rights or powers vested in it by this  Indenture or to honor
the request or direction of any of the  Noteholders  pursuant to this  Indenture
unless such Noteholders shall have offered to the Indenture  Trustee  reasonable
security or indemnity  against the reasonable  costs,  expenses,  disbursements,
advances  and  liabilities  which  might be  incurred  by it, its agents and its
counsel in compliance with such request or direction.

                  (g) Any request or  direction of the Issuer  mentioned  herein
shall be sufficiently evidenced by an Issuer Request.
<PAGE>

                  SECTION  6.3  Individual  Rights  of  Indenture  Trustee.  The
Indenture Trustee, in its individual or any other capacity, may become the owner
or pledgee  of Notes and may  otherwise  deal with the Issuer or its  Affiliates
with the same rights it would have if it were not  Indenture  Trustee.  Any Note
Paying Agent,  Note Registrar,  co-registrar or co-paying agent hereunder may do
the same with like rights.

                  SECTION 6.4  Indenture  Trustee's  Disclaimer.  The  Indenture
Trustee (i) shall not be responsible for, and makes no representation as to, the
validity  or  adequacy  of this  Indenture  or the Notes  and (ii)  shall not be
accountable  for the Issuer's use of the proceeds from the Notes, or 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  (all of which  shall be
taken  as  statements  of  the  Issuer)  other  than  the  Indenture   Trustee's
certificate of authentication.

                  SECTION  6.5 Notice of  Defaults.  If a Default  occurs and is
continuing and if it is known to a Trustee Officer of the Indenture Trustee, the
Indenture  Trustee shall mail to each  Noteholder  notice of such Default within
ninety (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
mandatory  redemption  provisions  of such  Note),  the  Indenture  Trustee  may
withhold  the notice if and so long as a committee  of its  Trustee  Officers in
good faith  determines  that  withholding  the notice is in the interests of the
Noteholders.

                  SECTION 6.6 Reports by Indenture Trustee to Noteholders.  Upon
delivery to the Indenture  Trustee by the Servicer of such information  prepared
by the Servicer  pursuant to Section 3.9 of the Sale and Servicing  Agreement as
may be  required  to enable  each  Noteholder  to prepare  its federal and State
income tax returns,  the Indenture Trustee shall deliver such information to the
Noteholders.

                  SECTION 6.7 Compensation and Indemnity.  (a) The Issuer shall,
or shall cause the  Administrator  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, or shall cause the  Administrator to, reimburse
the Indenture Trustee for all reasonable out-of-pocket expenses incurred or made
by it,  including costs of collection,  in addition to the  compensation for its
services.  Such expenses shall include the reasonable compensation and expenses,
disbursements  and  advances  of  the  Indenture   Trustee's  agents,   counsel,
accountants and experts.  The Issuer shall, or shall cause the Administrator to,

<PAGE>

indemnify the Indenture  Trustee for, and to hold it harmless  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,  including the costs and expenses of defending itself against
any claim or liability in connection  with the exercise or performance of any of
its powers or duties  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 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 indemnity
against any loss, liability or expense incurred by the Indenture Trustee through
the Indenture Trustee's own willful misconduct, negligence or bad faith.

                  (b) The Issuer's payment  obligations to the Indenture Trustee
pursuant to this  Section 6.7 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
5.1(iv)  or (v) with  respect  to the  Issuer,  the  expenses  are  intended  to
constitute  expenses of administration  under Title 11 of the United States Code
or any other applicable federal or State bankruptcy, insolvency or similar law.

                  SECTION  6.8   Replacement  of  Indenture   Trustee.   (a)  No
resignation  or  removal  of the  Indenture  Trustee,  and no  appointment  of a
successor  Indenture  Trustee,  shall become  effective  until the acceptance of
appointment by the successor  Indenture Trustee pursuant to this Section 6.8 and
payment in full of all sums due to the  Indenture  Trustee  pursuant  to Section
6.7. The  Indenture  Trustee may resign at any time by so notifying  the Issuer.
The Noteholders of Notes  evidencing not less than a majority in Note Balance of
the Controlling Note Class may remove the Indenture  Trustee without cause by so
notifying  the  Indenture  Trustee  and the Issuer and may  appoint a  successor
Indenture Trustee. The Issuer shall remove the Indenture Trustee if:

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

                           (ii) an Insolvency Event occurs with respect to the
                 Indenture Trustee;

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

                  (b) Any  successor  Indenture  Trustee shall deliver a written
acceptance  of its  appointment  to the  retiring  Indenture  Trustee and to the
Issuer.  Thereupon,  if all sums due the retiring  Indenture Trustee pursuant to
Section 6.7 have been paid in full,  the  resignation or removal of the retiring
Indenture  Trustee shall become effective,  and the successor  Indenture Trustee
shall have all the rights, powers and duties of the Indenture Trustee under this
Indenture. The successor Indenture Trustee shall mail a notice of its succession
to  Noteholders.  If all sums due the  retiring  Indenture  Trustee  pursuant to
Section  6.7 have  been  paid in full,  the  retiring  Indenture  Trustee  shall
promptly  transfer all property held by it as Indenture Trustee to the successor
Indenture Trustee.
<PAGE>

                  (c) If a  successor  Indenture  Trustee  does not take  office
within  sixty  (60) days  after the  retiring  Indenture  Trustee  resigns or is
removed,  the retiring Indenture Trustee, the Issuer or the Noteholders of Notes
evidencing  not less than a majority  in Note  Balance of the  Controlling  Note
Class 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  who has been a bona fide  Noteholder for at least
six (6) months may petition any court of competent  jurisdiction for the removal
of the Indenture Trustee and the appointment of a successor Indenture Trustee.

                  (d)  Notwithstanding  the replacement of the Indenture Trustee
pursuant  to  this  Section  6.8,  the   obligations   of  the  Issuer  and  the
Administrator  under Section 6.7 shall  continue for the benefit of the retiring
Indenture Trustee.

                  SECTION 6.9 Successor  Indenture Trustee by Merger. (a) 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  or  banking  association  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 provide the Rating Agencies with prior written notice of
any such transaction.

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

                  SECTION 6.10  Appointment of Co-Indenture  Trustee or Separate
Indenture Trustee.  (a)  Notwithstanding any other provisions of this Indenture,
at  any  time,  for  the  purpose  of  meeting  any  legal  requirement  of  any
jurisdiction  in which any part of the Indenture Trust Estate may at the time be
located,  the Indenture Trustee shall have the power and may execute and deliver
an  instrument  to  appoint  one or  more  Persons  to act  as a  co-trustee  or
co-trustees, or separate trustee or separate trustees, of all or any part of the
Trust,  and to vest in such  Person or  Persons,  in such  capacity  and for the
benefit of the  Noteholders,  such title to the Indenture  Trust Estate,  or any
part hereof,  and,  subject to the other  provisions of this Section 6.10,  such
powers,  duties,  obligations,  rights and trusts as the  Indenture  Trustee may
consider  necessary or desirable.  No co-trustee or separate  trustee  hereunder
shall be required to meet the terms of eligibility as a successor  trustee under
Section 6.11 and no notice to Noteholders  of the  appointment of any co-trustee
or separate trustee shall be required under Section 6.8.

                  (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  shall not be 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 Indenture
                  Trust Estate or any portion thereof in any such  jurisdiction)
                  shall be  exercised  and  performed  singly  by such  separate
                  trustee  or  co-trustee,  but solely at the  direction  of the
                  Indenture Trustee;

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

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

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

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

                  SECTION 6.11 Eligibility;  Disqualification. (a) The Indenture
Trustee shall at all times satisfy the  requirements of TIA Section 310(a).  The
Indenture  Trustee or its parent shall have a combined capital and surplus of at
least  $50,000,000  as set forth in its most recent  published  annual report of
condition and shall have a long-term debt rating of investment  grade by each of
the Rating  Agencies  or shall  otherwise  be  acceptable  to each of the Rating
Agencies. The Indenture Trustee shall comply with TIA Section 310(b).

                  (b) Within ninety (90) days after  ascertaining the occurrence
of an Event of  Default  which  shall  not have  been  cured or  waived,  unless
authorized by the Commission, the Indenture Trustee shall resign with respect to
the Class A Notes  and/or the Class B Notes in  accordance  with  Section 6.8 of
this Indenture,  and the Issuer shall appoint a successor  Indenture Trustee for
one or both of such  Classes,  as  applicable,  so that there  will be  separate
Indenture Trustees for the Class A Notes and the Class B Notes. In the event the
Indenture Trustee fails to comply with the terms of the preceding sentence,  the
Indenture  Trustee  shall  comply  with  clauses  (ii) and (iii) of TIA  Section
310(b).

                  (c) In the case of the  appointment  hereunder  of a successor
Indenture  Trustee with  respect to any Class of Notes  pursuant to this Section
6.11, the Issuer,  the retiring  Indenture  Trustee and the successor  Indenture
Trustee  with  respect  to such  Class of Notes  shall  execute  and  deliver an
indenture  supplemental  hereto wherein each successor  Indenture  Trustee shall
accept such  appointment and which (i) shall contain such provisions as shall be
necessary or desirable to transfer and confirm to, and to vest in, the successor
Indenture  Trustee all the  rights,  powers,  trusts and duties of the  retiring
Indenture  Trustee  with  respect  to  the  Notes  of the  Class  to  which  the
appointment of such successor  Indenture  Trustee relates,  (ii) if the retiring
Indenture  Trustee is not retiring  with respect to all Classes of Notes,  shall
contain  such  provisions  as shall be deemed  necessary or desirable to confirm
that all the rights, powers, trusts and duties of the retiring Indenture Trustee
with  respect  to the  Notes of each  Class as to which the  retiring  Indenture
Trustee is not retiring shall continue to be vested in the Indenture Trustee and
(iii) shall add to or change any of the provisions of this Indenture as shall be
necessary  to  provide  for or  facilitate  the  administration  of  the  trusts
hereunder by more than one Indenture  Trustee,  it being understood that nothing
herein  or in  such  supplemental  indenture  shall  constitute  such  Indenture
Trustees  co-trustees  of the same  trust and that each such  Indenture  Trustee
shall be a trustee of a trust or trusts  hereunder  separate  and apart from any
trust or trusts hereunder  administered by any other such Indenture Trustee; and
upon the removal of the retiring Indenture Trustee shall become effective to the
extent provided herein.
<PAGE>

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

                                   ARTICLE VII

                         NOTEHOLDERS' LISTS AND REPORTS

                  SECTION  7.1 Issuer To  Furnish  Indenture  Trustee  Names and
Addresses of  Noteholders.  The Issuer shall furnish or cause to be furnished to
the Indenture  Trustee (a) not more than five (5) days after each Record Date, a
list, in such form as the Indenture Trustee may reasonably require, of the names
and  addresses of the  Noteholders  as of such Record Date and (b) at such other
times as the Indenture  Trustee may request in writing,  within thirty (30) days
after  receipt by the  Issuer of any such  request,  a list of similar  form and
content  as of a date not more than ten (10) days prior to the time such list is
furnished;  provided,  however, that (i) so long as the Indenture Trustee is the
Note Registrar,  no such list shall be required to be furnished and (ii) no such
list shall be required to be furnished with respect to Noteholders of Book-Entry
Notes.

                  SECTION 7.2  Preservation  of Information;  Communications  to
Noteholders.  (a) The Indenture Trustee shall preserve,  in as current a form as
is reasonably practicable,  the names and addresses of the Noteholders contained
in the most  recent  list  furnished  to the  Indenture  Trustee as  provided in
Section 7.1 and the names and addresses of Noteholders received by the Indenture
Trustee in its capacity as Note Registrar. The Indenture Trustee may destroy any
list  furnished to it as provided in such Section 7.1 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.  Upon receipt by the Indenture  Trustee of any request by three
or more  Noteholders or by one or more  Noteholders of Notes evidencing not less
than 25% of the Note Balance of the Notes  Outstanding  to receive a copy of the
current  list of  Noteholders  (whether  or not  made  pursuant  to TIA  Section
312(b)),  the Indenture Trustee shall promptly notify the Administrator  thereof
by providing to the  Administrator a copy of such request and a copy of the list
of Noteholders produced in response thereto.

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

                  SECTION 7.3  Reports by Issuer.  (a)  The Issuer shall:

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

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

                           (iii)  supply  to  the  Indenture  Trustee  (and  the
                  Indenture  Trustee shall  transmit by mail to all  Noteholders
                  described  in  TIA  Section  313(c))  such  summaries  of  any
                  information, documents and reports required to be filed by the
                  Issuer pursuant to clauses (i) and (ii) of this Section 7.3(a)
                  and by rules and  regulations  prescribed from time to time by
                  the Commission.

                  (b) Unless the Issuer otherwise determines, the fiscal year of
the Issuer shall correspond to the calendar year.

                  SECTION 7.4 Reports by Indenture  Trustee.  (a) If required by
TIA Section 313(a), within sixty (60) days after each May 15, beginning with May
15, 2001, the Indenture Trustee shall mail to each Noteholder as required by TIA
Section  313(c) a brief  report  dated as of such  date that  complies  with TIA
Section 313(a). The Indenture Trustee also shall comply with TIA Section 313(b).
<PAGE>

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

                                  ARTICLE VIII

                      ACCOUNTS, DISBURSEMENTS AND RELEASES

                  SECTION 8.1 Collection of Money. Except as otherwise expressly
provided  herein,  the Indenture  Trustee may demand payment or delivery of, and
shall receive and collect,  directly and without  intervention  or assistance of
any fiscal agent or other intermediary,  all money and other property payable to
or receivable by the Indenture  Trustee  pursuant to this Indenture and the Sale
and  Servicing  Agreement.  The  Indenture  Trustee  shall  apply all such money
received  by it as  provided  in this  Indenture  and  the  Sale  and  Servicing
Agreement.  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 Indenture Trust Estate,  the Indenture Trustee
may  take  such  action  as  may be  appropriate  to  enforce  such  payment  or
performance,   including  the   institution   and   prosecution  of  appropriate
Proceedings.  Any such action shall be without prejudice to any right to claim a
Default  or Event of  Default  under  this  Indenture  and any right to  proceed
thereafter as provided in Article V.

                  SECTION 8.2 Trust  Accounts  and Payahead  Account.  (a) On or
prior to the Closing Date,  the Issuer shall cause the Servicer to establish and
maintain the Trust Accounts and the Payahead Account as provided in Sections 4.1
and 4.7 of the Sale and Servicing Agreement.

                  (b) On or before each  Distribution  Date,  the Servicer shall
deposit  all  Available  Collections  with  respect  to  the  Collection  Period
preceding  such  Distribution  Date in the  Collection  Account as  provided  in
Sections 4.2, 4.3, 4.4 and 4.5 of the Sale and Servicing Agreement. On or before
each  Distribution  Date, all amounts  required to be withdrawn from the Reserve
Account and deposited in the Collection  Account  pursuant to Section 4.5 of the
Sale and Servicing  Agreement  shall be withdrawn by the Indenture  Trustee from
the Reserve Account and deposited to the Collection Account.

                  (c) On each Distribution Date, the Indenture Trustee (based on
the information  contained in the Servicer's  Certificate delivered on or before
the related Determination Date pursuant to Section 3.9 of the Sale and Servicing
Agreement) shall make the following  withdrawals from the Collection Account and
make deposits,  distributions and payments, to the extent of funds on deposit in
the  Collection  Account with respect to the  Collection  Period  preceding such
Distribution Date (including  funds, if any,  deposited therein from the Reserve
Account and the Payahead Account), in the following order of priority:
<PAGE>

                           (i)        first, to the Servicer, the Servicing Fee
                  and all unpaid Servicing Fees from prior Collection Periods;

                           (ii) second, to the Noteholders of Class A Notes, the
                  Accrued Class A Note Interest;  provided that if there are not
                  sufficient  funds  available  to pay the entire  amount of the
                  Accrued Class A Note Interest,  the amounts available shall be
                  applied to the  payment of such  interest on the Class A Notes
                  on a pro rata basis;

                           (iii) third, to the Principal Distribution Account,
                  the First Priority Principal Distribution Amount, if any;

                           (iv) fourth, to the Noteholders of Class B Notes, the
                  Accrued Class B Note Interest;  provided that if there are not
                  sufficient  funds  available  to pay the entire  amount of the
                  Accrued Class B Note Interest,  the amounts available shall be
                  applied to the  payment of such  interest on the Class B Notes
                  on a pro rata basis;

                           (v)  fifth, to the Principal Distribution Account,
                  the Second Priority Principal Distribution Amount, if any;

                           (vi)  sixth, to the Certificate Interest Distribution
                  Account, the Accrued Class C Certificate Interest;

                           (vii) seventh, to the Certificate Interest
                  Distribution Account, the Accrued Class D Certificate
                  Interest;

                           (viii) eighth, to the Reserve Account, the amount, if
                  any,  required to reinstate the amount in the Reserve  Account
                  up to the Specified Reserve Balance;

                           (ix)  ninth, to the Principal Distribution Account,
                  the Regular Principal Distribution Amount, if any; and

                           (x) tenth,  to the  Seller,  any funds  remaining  on
                  deposit  in  the  Collection   Account  with  respect  to  the
                  Collection Period preceding such Distribution Date.
<PAGE>

Notwithstanding any other provision of this Article VIII, and subject to Section
5.4(b),  (A) following the occurrence and during the continuation of an Event of
Default  specified  in Section  5.1(i),  5.1(ii),  5.1(iv)  or 5.1(v)  which has
resulted in an  acceleration  of the Notes (or following  the  occurrence of any
such event after an Event of Default  specified in Section 5.1(iii) has occurred
and the Notes have been accelerated),  the Servicer shall instruct the Indenture
Trustee to transfer  the funds on deposit in the  Collection  Account  remaining
after  the   application  of  clauses  (i)  and  (ii)  above  to  the  Principal
Distribution  Account to the extent  necessary to reduce the principal amount of
all the Class A Notes to zero,  (B)  following  the  occurrence  and  during the
continuation  of an Event of Default  specified in Section  5.1(iii),  which has
resulted in an  acceleration  of the Notes,  the  Servicer  shall  instruct  the
Indenture  Trustee to transfer  the funds on deposit in the  Collection  Account
remaining  after the  application of clauses (i), (ii),  (iii) and (iv) above to
the  Principal  Distribution  Account  to the  extent  necessary  to reduce  the
principal  amount  of all the  Notes  to  zero,  and (C) in the case of an event
described  in clause (A) or (B),  the  Certificateholders  will not  receive any
distributions  of principal or interest  until the principal  amount and accrued
interest on all the Notes has been paid in full.

                  (d) On each Distribution Date, the Indenture Trustee (based on
the information  contained in the Servicer's  Certificate delivered on or before
the related Determination Date pursuant to Section 3.9 of the Sale and Servicing
Agreement)  shall  withdraw the funds on deposit in the  Principal  Distribution
Account with respect to the Collection  Period preceding such  Distribution Date
and make distributions and payments in the following order of priority:

                           (i) first,  to the Noteholders of the Class A-1 Notes
                  in reduction of principal  until the  principal  amount of the
                  Outstanding  Class A-1  Notes has been paid in full;  provided
                  that if there are not  sufficient  funds  available to pay the
                  principal  amount of the Outstanding  Class A-1 Notes in full,
                  the  amounts  available  shall be  applied  to the  payment of
                  principal on the Class A-1 Notes on a pro rata basis;

                           (ii)  second,  to the  Noteholders  of the  Class A-2
                  Notes in reduction of principal until the principal  amount of
                  the  Outstanding  Class  A-2  Notes  has  been  paid in  full;
                  provided that if there are not sufficient  funds  available to
                  pay the principal amount of the Outstanding Class A-2 Notes in
                  full, the amounts available shall be applied to the payment of
                  principal on the Class A-2 Notes on a pro rata basis;

                           (iii)  third,  to the  Noteholders  of the  Class A-3
                  Notes in reduction of principal until the principal  amount of
                  the  Outstanding  Class  A-3  Notes  has  been  paid in  full;
                  provided that if there are not sufficient  funds  available to
                  pay the principal amount of the Outstanding Class A-3 Notes in
                  full, the amounts available shall be applied to the payment of
                  principal on the Class A-3 Notes on a pro rata basis;

                           (iv)  fourth,  to the  Noteholders  of the  Class A-4
                  Notes in reduction of principal until the principal  amount of
                  the  Outstanding  Class  A-4  Notes  has  been  paid in  full;
                  provided that if there are not sufficient  funds  available to
                  pay the principal amount of the Outstanding Class A-4 Notes in
                  full, the amounts available shall be applied to the payment of
                  principal on the Class A-4 Notes on a pro rata basis;
<PAGE>

                           (v) fifth,  to the Noteholders of the Class A-5 Notes
                  in reduction of principal  until the  principal  amount of the
                  Outstanding  Class A-5  Notes has been paid in full;  provided
                  that if there are not  sufficient  funds  available to pay the
                  principal  amount of the Outstanding  Class A-5 Notes in full,
                  the  amounts  available  shall be  applied  to the  payment of
                  principal on the Class A-5 Notes on a pro rata basis;

                           (vi) sixth,  to the  Noteholders of the Class B Notes
                  in reduction of principal  until the  principal  amount of the
                  Outstanding Class B Notes has been paid in full; provided that
                  if  there  are  not  sufficient  funds  available  to pay  the
                  principal amount of the Outstanding Class B Notes in full, the
                  amounts available shall be applied to the payment of principal
                  on the Class B Notes on a pro rata basis;

                           (vii)   seventh,   to   the   Certificate   Principal
                  Distribution  Account, in reduction of the Certificate Balance
                  of the Class C Certificates,  until the Certificate Balance of
                  the Class C Certificates has been reduced to zero;

                           (viii)   eighth,   to   the   Certificate   Principal
                  Distribution  Account, in reduction of the Certificate Balance
                  of the Class D Certificates,  until the Certificate Balance of
                  the Class D Certificates has been reduced to zero; and

                           (ix) ninth, to the Seller, any funds remaining on
                  deposit in the Principal Distribution Account.

                  SECTION 8.3 General Provisions Regarding Accounts. (a) So long
as no Default or Event of Default shall have occurred and be continuing,  all or
a portion of the funds in the Collection  Account and the Payahead Account shall
be  invested  by  the  Qualified  Institution  or  Qualified  Trust  Institution
maintaining  such  account  (which  initially is the  Indenture  Trustee) at the
direction of the Servicer in Permitted Investments as provided in Section 4.1 of
the Sale and  Servicing  Agreement.  All income or other gain (net of losses and
investment  expenses)  from  investments  of monies  deposited in the Collection
Account,  the Payahead Account and the Reserve Account shall be withdrawn by the
Indenture Trustee from such accounts (but only under the circumstances set forth
in Sections 4.5(b) and 4.7(c) in the Sale and Servicing Agreement in the case of
the Reserve  Account) and distributed as provided in Sections 4.1 and 4.7 of the
Sale and  Servicing  Agreement.  The  Servicer  shall not direct  the  Qualified
Institution or Qualified Trust Institution maintaining the Collection Account or
Payahead  Account to make any  investment of any funds or to sell any investment
held in any of the Trust  Accounts  unless the  security  interest  Granted  and
perfected in such account will  continue to be perfected in such  investment  or
the  proceeds  of such sale,  in either case  without any further  action by any
Person,  and, in connection  with any direction by the Servicer to make any such
investment  or sale, if requested by the  applicable  Qualified  Institution  or
Qualified  Trust  Institution,  the  Issuer  shall  deliver  to  such  Qualified
Institution or Qualified Trust Institution an Opinion of Counsel,  acceptable to
such Qualified Institution or Qualified Trust Institution, to such effect.
<PAGE>

                  (b) Subject to Section 6.1(c), the Indenture Trustee shall not
in any way be held  liable by reason  of any  insufficiency  in any of the Trust
Accounts or in the Payahead  Account  resulting  from any loss on any  Permitted
Investment  included  therein,  except for losses  attributable to the Indenture
Trustee's failure to make payments on such Permitted  Investments  issued by the
Indenture  Trustee,  in its commercial  capacity as principal obligor and not as
trustee,  in accordance  with their terms.  In addition,  the Indenture  Trustee
shall have no duty to monitor the  activities  of any Qualified  Institution  or
Qualified  Trust  Institution  (unless such  Qualified  Institution or Qualified
Trust  Institution  is also the  Indenture  Trustee) and shall not in any way be
held  liable for the  actions  or  inactions  of any  Qualified  Institution  or
Qualified  Trust  Institution  (unless such  Qualified  Institution or Qualified
Trust Institution is also the Indenture Trustee).

                  (c) If the Indenture  Trustee is the Qualified  Institution or
Qualified Trust Institution  maintaining the Collection  Account or the Payahead
Account and (i) the Servicer shall have failed to give investment directions for
any funds on deposit in the  Collection  Account or the Payahead  Account to the
Indenture  Trustee  by 11:00  a.m.  New York Time (or such  other time as may be
agreed by the Issuer and the  Indenture  Trustee) on the Business Day  preceding
each  Distribution  Date,  (ii)  to the  knowledge  of a  Trust  Officer  of the
Indenture  Trustee,  a Default or Event of Default  shall have  occurred  and be
continuing  with respect to the Notes but the Notes shall not have been declared
due and  payable  pursuant  to  Section  5.2 or (iii) the Notes  shall have been
declared  due and payable  following  an Event of Default  amounts  collected or
receivable  from the Indenture Trust Estate are being applied in accordance with
Section 5.4 as if there had not been such a  declaration,  then in each case the
Indenture Trustee shall, to the fullest extent practicable,  invest and reinvest
funds in the Collection Account and the Payahead Account, as the case may be, in
one or more  Permitted  Investments  described  in clause (b) of the  definition
thereof.

                  SECTION 8.4 Release of Indenture Trust Estate.  (a) Subject to
the payment of its fees and  expenses  pursuant to Section  6.7,  the  Indenture
Trustee  may,  and when  required by the  provisions  of this  Indenture  shall,
execute  instruments  to release  property from the lien of this  Indenture,  or
convey  the  Indenture  Trustee's  interest  in the same,  in a manner and under
circumstances  that are not inconsistent  with the provisions of this Indenture.
No party  relying  upon an  instrument  executed  by the  Indenture  Trustee  as
provided  in this  Article  VIII  shall  be  bound to  ascertain  the  Indenture
Trustee's  authority,  inquire into the satisfaction of any conditions precedent
or see to the application of any monies.
<PAGE>

                  (b) The Indenture  Trustee shall, at such time as there are no
Notes Outstanding and all sums due the Indenture Trustee pursuant to Section 6.7
have been paid in full,  release any remaining  portion of the  Indenture  Trust
Estate 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  8.4(b) only upon receipt of an Issuer
Request accompanied by an Officer's  Certificate,  an Opinion of Counsel and (if
required by the TIA)  Independent  Certificates  in accordance with TIA Sections
314(c) and 314(d)(1) meeting the applicable requirements of Section 11.1.

                  (c) Each Noteholder or Note Owner, by its acceptance of a Note
or, in the case of a Note Owner, a beneficial  interest in a Note,  acknowledges
that from time to time the  Indenture  Trustee  shall  release  the lien of this
Indenture  on any  Receivable  to be sold to (i) the Seller in  accordance  with
Section  2.3 of the Sale and  Servicing  Agreement  and (ii) to the  Servicer in
accordance with Section 3.7 of the Sale and Servicing Agreement.

                  SECTION 8.5 Opinion of Counsel.  The  Indenture  Trustee shall
receive at least seven (7) days notice when  requested by the Issuer to take any
action  pursuant to Section  8.4(a),  accompanied  by copies of any  instruments
involved,  and the Indenture  Trustee  shall also require,  except in connection
with any action  contemplated by Section 8.4(c),  as a condition to such action,
an Opinion of  Counsel,  in form and  substance  satisfactory  to the  Indenture
Trustee,  stating  the legal  effect  of any such  action,  outlining  the steps
required to complete the same, and concluding  that all conditions  precedent to
the taking of such  action  have been  complied  with and such  action  will not
materially and adversely  impair the security for the Notes or the rights of the
Noteholders  in  contravention  of the provisions of this  Indenture;  provided,
however,  that such  Opinion  of  Counsel  shall not be  required  to express an
opinion as to the fair value of the Indenture  Trust Estate.  Counsel  rendering
any such opinion may rely, without  independent  investigation,  on the accuracy
and validity of any certificate or other  instrument  delivered to the Indenture
Trustee in connection with any such action.

<PAGE>

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

                  SECTION  9.1  Supplemental   Indentures   Without  Consent  of
Noteholders. (a) Without the consent of the Noteholders but with prior notice to
the Rating Agencies, the Issuer and the Indenture Trustee, when authorized by an
Issuer  Order,  at any time and from time to time,  may  enter  into one or more
indentures  supplemental  hereto (which shall  conform to the  provisions of the
Trust Indenture Act as in force at the date of the execution  thereof),  in form
satisfactory to the Indenture Trustee, for any of the following purposes:

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

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

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

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

                           (v) to cure any  ambiguity,  to correct or supplement
                  any provision herein or in any supplemental indenture that may
                  be  inconsistent  with any  other  provision  herein or in any
                  supplemental  indenture or to make any other  provisions  with
                  respect to matters or questions  arising under this  Indenture
                  or  under  any  supplemental  indenture  which  shall  not  be
                  inconsistent  with the provisions of the  Indenture;  provided
                  that such action  shall not  materially  adversely  affect the
                  interests of the Noteholders;
<PAGE>

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

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

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

                  (b) The Issuer and the Indenture  Trustee,  when authorized by
an Issuer  Order,  may, also without the consent of any of the  Noteholders  but
with prior notice to the Rating Agencies,  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 (other than the  modifications set forth in Section 9.2)
the rights of the Noteholders under this Indenture;  provided, however, that (i)
such action shall not, as evidenced by an Opinion of Counsel,  adversely  affect
in any material respect the interests of any Noteholder,  (ii) the Rating Agency
Condition  shall have been  satisfied with respect to such action and (iii) such
action shall not, as evidenced by an Opinion of Counsel,  cause the Issuer to be
characterized  for federal or any then  Applicable Tax State income tax purposes
as an  association  taxable as a  corporation  or  otherwise  have any  material
adverse impact on the federal or any then  Applicable Tax State income  taxation
of any Notes  Outstanding  or  outstanding  Certificates  or any  Noteholder  or
Certificateholder.
<PAGE>

                  SECTION   9.2   Supplemental   Indentures   with   Consent  of
Noteholders.  The Issuer and the Indenture Trustee, when authorized by an Issuer
Order,  also may, with prior notice to the Rating  Agencies and the consent of a
majority  of the Note  Balance  of the  Controlling  Note  Class,  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  modifying  in any manner the rights of the  Noteholders
under this Indenture;  provided,  however,  that (i) the Rating Agency Condition
shall have been satisfied with respect to such action and (ii) such action shall
not, as evidenced by an Opinion of Counsel, cause the Issuer to be characterized
for  federal  or any  then  Applicable  Tax  State  income  tax  purposes  as an
association  taxable as a  corporation  or otherwise  have any material  adverse
impact on the federal or any then  Applicable  Tax State income  taxation of any
Notes   Outstanding   or   outstanding   Certificates   or  any   Noteholder  or
Certificateholder;  and provided,  further, that no such supplemental  indenture
shall, without the consent of each Outstanding Note affected thereby:

                           (i)  modify or alter provisions of this Section 9.2;

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

                           (iii) reduce the  percentage of the principal  amount
                  of the Notes  Outstanding or the Controlling  Note Class,  the
                  consent of the  Noteholders  of which is required for any such
                  supplemental  indenture,  or the consent of the Noteholders of
                  which is required  for any waiver of  compliance  with certain
                  provisions of this Indenture or certain  Defaults or Events of
                  Default hereunder and their consequences  provided for in this
                  Indenture;

<PAGE>

                           (iv) modify or alter (x) the provisions of the
                  provison to the definition of the term "Outstanding" or (y)
                  the definition of "Controlling Note Class";

                           (v) reduce the percentage of the principal  amount of
                  the  Notes  Outstanding  or  of  the  Controlling  Note  Class
                  required to direct or consent to a sale or  liquidation by the
                  Indenture  Trustee of the Indenture  Trust Estate  pursuant to
                  Section 5.4 if the proceeds of such sale or liquidation  would
                  be  insufficient  to pay the principal  amount and accrued but
                  unpaid  interest  on the Notes  and/or  the  Certificates,  as
                  applicable;

                           (vi)   modify  any   provision   of  this   Indenture
                  specifying a percentage of the  aggregate  Note Balance of the
                  Notes  necessary  to amend this  Indenture  or the other Basic
                  Documents  except to increase any percentage  specified herein
                  or to  provide  that  certain  additional  provisions  of this
                  Indenture or the other Basic  Documents  cannot be modified or
                  waived   without  the  consent  of  the   Noteholder  of  each
                  Outstanding Note affected thereby;

                           (vii) modify any of the  provisions of this Indenture
                  in such manner as to affect the  calculation  of the amount of
                  any payment of interest  or  principal  due on any Note on any
                  Distribution  Date  (including  the  calculation of any of the
                  individual  components of such  calculation)  or to affect the
                  rights of the Noteholders to the benefit of any provisions for
                  the mandatory redemption of the Notes contained herein; or

                           (viii)  permit the creation of any lien ranking prior
                  to or on a parity with the lien of this Indenture with respect
                  to any  part of the  Indenture  Trust  Estate  or,  except  as
                  otherwise permitted or contemplated herein, terminate the lien
                  of this  Indenture on any such  collateral at any time subject
                  hereto or deprive any  Noteholder of the security  provided by
                  the lien of this Indenture.

The  Indenture  Trustee may in its  discretion  or upon receipt of an Opinion of
Counsel determine whether or not any Notes would be affected by any supplemental
indenture and any such determination shall be conclusive upon the Noteholders 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.
<PAGE>

                  It shall not be  necessary  for any Act of  Noteholders  under
this Section 9.2 to approve the  particular  form of any  proposed  supplemental
indenture,  but it shall be  sufficient  if such Act shall approve the substance
thereof.

                  Promptly  after the  execution by the Issuer and the Indenture
Trustee  of any  supplemental  indenture  pursuant  to  this  Section  9.2,  the
Indenture  Trustee  shall  mail to the  Noteholders  of the Notes to which  such
amendment or  supplemental  indenture  relates a notice setting forth in general
terms the substance of such supplemental indenture. Any failure of the Indenture
Trustee to mail such notice, or any defect therein,  shall not, however,  in any
way impair or affect the validity of any such supplemental indenture.

                  SECTION  9.3   Execution  of   Supplemental   Indentures.   In
executing,  or permitting  the additional  trusts  created by, any  supplemental
indenture permitted by this Article IX or the modification thereby of the trusts
created by this Indenture,  the Indenture  Trustee shall be entitled to receive,
and subject to Sections 6.1 and 6.2,  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 and that all  conditions  precedent
to  the  execution  and  delivery  of  such  supplemental  indenture  have  been
satisfied.  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.
<PAGE>

                  SECTION  9.4  Effect  of  Supplemental  Indenture.   Upon  the
execution of any supplemental  indenture pursuant to the provisions hereof, this
Indenture  shall be and shall be deemed to be modified and amended in accordance
therewith with respect to the Notes affected thereby, and the respective rights,
limitations of rights,  obligations,  duties,  liabilities and immunities  under
this Indenture of the Indenture  Trustee,  the Issuer and the Noteholders  shall
thereafter  be  determined,  exercised  and  enforced  hereunder  subject in all
respects to such modifications and amendments,  and all the terms and conditions
of any such  supplemental  indenture  shall be and be  deemed  to be part of the
terms and conditions of this Indenture for any and all purposes.

                  SECTION  9.5  Conformity   with  Trust  Indenture  Act.  Every
amendment of this Indenture and every  supplemental  indenture executed pursuant
to this Article IX shall conform to the  requirements of the Trust Indenture Act
as then in effect so long as this  Indenture  shall then be qualified  under the
Trust Indenture Act.

                  SECTION 9.6  Reference  in Notes to  Supplemental  Indentures.
Notes  authenticated  and  delivered  after the  execution  of any  supplemental
indenture  pursuant to this  Article IX may,  and if  required by the  Indenture
Trustee shall,  bear a notation in form approved by the Indenture  Trustee as to
any matter  provided for in such  supplemental  indenture.  If the Issuer or the
Indenture  Trustee shall so determine,  new Notes so modified as to conform,  in
the opinion of the Indenture  Trustee and the Issuer,  to any such  supplemental
indenture  may be  prepared  and  executed by the Issuer and  authenticated  and
delivered by the Indenture Trustee in exchange for Outstanding Notes.

<PAGE>

                                    ARTICLE X

                               REDEMPTION OF NOTES

                  SECTION  10.1  Redemption.  The  Class A Notes and the Class B
Notes are subject to redemption  in whole,  but not in part, at the direction of
the Servicer pursuant to Section 9.1 of the Sale and Servicing Agreement, on any
Distribution  Date on which the  Servicer  exercises  its option to purchase the
assets of the Issuer  pursuant to such  Section  9.1, and the amount paid by the
Servicer shall be treated as  collections of Receivables  and applied to pay the
unpaid  principal amount of the Notes and the Aggregate  Certificate  Balance of
the Certificates plus accrued and unpaid interest thereon.  If the Class A Notes
and the Class B Notes are to be redeemed  pursuant to this Section 10.1(a),  the
Servicer or the Issuer shall  furnish  notice of such  election to the Indenture
Trustee  and the  Rating  Agencies  not later  than forty (40) days prior to the
Redemption Date (and the Indenture  Trustee shall promptly furnish notice to the
Noteholders)  and the Issuer shall deposit by 10:00 a.m. (New York City time) on
the Redemption  Date with the Indenture  Trustee in the  Collection  Account the
Redemption  Price of the  Class A Notes  and the  Class B Notes to be  redeemed,
whereupon  all such Class A Notes and Class B Notes  shall be due and payable on
the Redemption Date.

                  SECTION 10.2 Form of Redemption  Notice.  Notice of redemption
under Section  10.1(a) shall be given by the  Indenture  Trustee by  first-class
mail, postage prepaid, or by facsimile mailed or transmitted  promptly following
receipt of notice from the Issuer or Servicer  pursuant to Section 10.1(a),  but
not later than thirty (30) days prior to the applicable Redemption Date, to each
Noteholder  as of the  close  of  business  on the  Record  Date  preceding  the
applicable  Redemption  Date, at such  Noteholder's  address or facsimile number
appearing in the Note Register.

                  All notices of redemption shall state:

                           (i) the Redemption Date;

                           (ii) the Redemption Price;

<PAGE>

                           (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 3.2); and

                           (iv)  that on the  Redemption  Date,  the  Redemption
                  Price will become due and payable upon each such Note and that
                  interest  thereon  shall  cease to accrue  for and after  said
                  date.

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

                  SECTION 10.3 Notes Payable on Redemption Date. The Notes to be
redeemed shall,  following  notice of redemption as required by Section 10.2 (in
the case of redemption  pursuant to Section  10.1(a)),  shall 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.

<PAGE>

                                   ARTICLE XI

                                  MISCELLANEOUS

                  SECTION 11.1 Compliance  Certificates  and Opinions,  etc. (a)
Upon any  application or request by the Issuer to the Indenture  Trustee to take
any action under any  provision of this  Indenture,  the Issuer shall furnish to
the Indenture Trustee (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 11.1,  except that, in the case of any such  application or request
as to which the  furnishing of such  documents is  specifically  required by any
provision  of this  Indenture,  no  additional  certificate  or opinion  need be
furnished.

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

                  (A) 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;

                  (B) 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;

                  (C) 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

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

<PAGE>

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

                           (ii)  Whenever  the Issuer is  required to furnish to
                  the Indenture Trustee an Officer's  Certificate  certifying or
                  stating  the  opinion of any signer  thereof as to the matters
                  described  in clause (i) above,  the Issuer shall also deliver
                  to the Indenture Trustee an Independent  Certificate as to the
                  same  matters,  if  the  fair  value  to  the  Issuer  of  the
                  securities to be so deposited and of all other such securities
                  made the basis of any such  withdrawal  or  release  since the
                  commencement of the then-current fiscal year of the Issuer, as
                  set forth in the certificates delivered pursuant to clause (i)
                  above and this clause  (ii),  is ten percent  (10%) or more of
                  the  principal  amount  of the Notes  Outstanding,  but such a
                  certificate   need  not  be  furnished  with  respect  to  any
                  securities  so  deposited,  if the fair  value  thereof to the
                  Issuer as set forth in the related  Officer's  Certificate  is
                  less  than  $25,000  or  less  than  one  percent  (1%) of the
                  principal amount of the Notes Outstanding.

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

<PAGE>

                           (iv)  Whenever  the Issuer is  required to furnish to
                  the Indenture Trustee 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 an Independent  Certificate as to the
                  same matters if the fair value of the  property or  securities
                  and of all other property, other than property as contemplated
                  by clause (v) below or  securities  released  from the lien of
                  this  Indenture  since the  commencement  of the  then-current
                  calendar  year, as set forth in the  certificates  required by
                  clause  (iii) above and this clause  (iv),  equals ten percent
                  (10%)  or  more  of  the   principal   amount   of  the  Notes
                  Outstanding, but such certificate need not be furnished in the
                  case of any  release of  property  or  securities  if the fair
                  value   thereof  as  set  forth  in  the   related   Officer's
                  Certificate is less than $25,000 or less than one percent (1%)
                  of the principal amount of the Notes Outstanding.

                           (v)   Notwithstanding   Section  2.10  or  any  other
                  provisions  of this  Section  11.1,  the Issuer  may,  without
                  compliance with the  requirements  of the other  provisions of
                  this Section 11.1, (A) collect,  liquidate,  sell or otherwise
                  dispose of  Receivables  and  Financed  Vehicles as and to the
                  extent  permitted or required by the Basic  Documents  and (B)
                  make cash payments out of the Trust  Accounts and the Payahead
                  Account  as and to the extent  permitted  or  required  by the
                  Basic Documents.

                  SECTION 11.2 Form of Documents Delivered to Indenture Trustee.
(a) In any case where  several  matters  are  required  to be  certified  by, or
covered by an opinion of, any specified  Person,  it is not  necessary  that all
such  matters  be  certified  by, or covered by the  opinion  of,  only one such
Person,  or that they be so certified or covered by only one  document,  but one
such Person may certify or give an opinion  with respect to some matters and one
or more other such Persons as to other matters,  and any such Person may certify
or give an opinion as to such matters in one or several documents.

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

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

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

                  SECTION 11.3 Acts of  Noteholders.  (a) Any  request,  demand,
authorization,  direction,  notice,  consent, waiver or other action provided by
this  Indenture  to be  given or taken by  Noteholders  may be  embodied  in and
evidenced by one or more  instruments of  substantially  similar tenor signed by
such Noteholders in person or by agents duly appointed in writing; and except as
herein otherwise expressly provided such action shall become effective when such
instrument or instruments are delivered to the Indenture Trustee,  and, where it
is hereby expressly required, to the Issuer. Such instrument or instruments (and
the action embodied herein and evidenced  thereby) are herein sometimes referred
to as the "Act" of the Noteholders signing such instrument or instruments. Proof
of execution of any such  instrument or of a writing  appointing  any such agent
shall be  sufficient  for any purpose of this  Indenture and (subject to Section
6.1) conclusive in favor of the Indenture Trustee and the Issuer, if made in the
manner provided in this Section 11.3.

                  (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.
<PAGE>

                  (d) Any request,  demand,  authorization,  direction,  notice,
consent,  waiver or other action by the  Noteholder  of any Notes shall bind the
Noteholder  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 11.4 Notices,  etc., to Indenture Trustee,  Issuer and
Rating Agencies. Any request, demand, authorization, direction, notice, consent,
waiver or Act of  Noteholders or other  documents  provided or permitted by this
Indenture  shall  be in  writing  and if such  request,  demand,  authorization,
direction,  notice,  consent,  waiver or Act of  Noteholders is to be made upon,
given or furnished to or filed with:

                           (i) the  Indenture  Trustee  by any  Noteholder,  the
                  Servicer,  the Administrator or the Issuer shall be sufficient
                  for every purpose hereunder if made, given, furnished or filed
                  in writing to or with the  Indenture  Trustee at its Corporate
                  Trust office; or

                           (ii) the  Issuer by the  Indenture  Trustee or by any
                  Noteholder shall be sufficient for every purpose  hereunder if
                  in writing  and  mailed  first-class,  postage  prepaid to the
                  Issuer  addressed to: Ford Credit Auto Owner Trust 2000-E,  in
                  care of The Bank of New York,  101  Barclay  Street,  Floor 12
                  East,  New York,  New  York,  10256,  Attention:  Asset-Backed
                  Finance Unit, with a copy to the Administrator at One American
                  Road, Dearborn,  Michigan 48126,  Attention:  Secretary, or at
                  any other  address  previously  furnished  in  writing  to the
                  Indenture  Trustee  by the  Issuer or the  Administrator.  The
                  Issuer shall promptly  transmit any notice received by it from
                  the Noteholders to the Indenture Trustee.

                  Notices  required  to be given to the Rating  Agencies  by the
Issuer,  the  Indenture  Trustee  or the  Owner  Trustee  shall  be in  writing,
personally  delivered,  telecopied or mailed by certified  mail,  return receipt
requested,  to (i) in the case of Moody's,  at the  following  address:  Moody's
Investors Service, Inc., ABS Monitoring Department,  99 Church Street, New York,
New York 10007,  (ii) in case of Standard & Poor's,  at the  following  address:
Standard & Poor's Ratings Services,  55 Water Street,  40th Floor, New York, New
York 10041,  Attention:  Asset Backed  Surveillance  Department and (iii) in the
case of Fitch, at the following address:  Fitch, Inc., 1 State Street Plaza, New
York, New York 10004, Attention: Asset Backed Surveillance.
<PAGE>

                  SECTION 11.5 Notices to  Noteholders;  Waiver.  (a) Where this
Indenture  provides for notice to Noteholders of any event, such notice shall be
sufficiently  given (unless  otherwise herein expressly  provided) if in writing
and mailed,  first-class,  postage prepaid to each  Noteholder  affected by such
event,  at his  address as it appears on the Note  Register,  not later than the
latest date, and not earlier than the earliest  date,  prescribed for the giving
of such  notice.  In any case  where  notice  to  Noteholders  is given by mail,
neither  the  failure to mail such notice nor any defect in any notice so mailed
to any particular  Noteholder  shall affect the  sufficiency of such notice with
respect to other Noteholders, and any notice that is mailed in the manner herein
provided shall conclusively be presumed to have been duly given.

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

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

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

                  SECTION  11.6   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 Noteholder providing
for a method of payment,  or notice by the Indenture  Trustee or any Note Paying
Agent to such  Noteholder,  that is different  from the methods  provided for in
this  Indenture  for such  payments or notices.  The Issuer shall furnish to the
Indenture  Trustee a copy of each such agreement and the Indenture Trustee shall
cause  payments  to be made and  notices  to be given in  accordance  with  such
agreements.

                  SECTION  11.7  Conflict  with  Trust  Indenture  Act.  If  any
provision  hereof limits,  qualifies or conflicts with another  provision hereof
that is  required  or  deemed to be  included  in this  Indenture  by any of the
provisions of the Trust  Indenture Act, such required or deemed  provision shall
control.
<PAGE>

                  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  11.8 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  11.9  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.

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

              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,  without  reference to its
conflict of law provisions.

                  SECTION 11.14 Counterparts.  This Indenture may be executed in
any number of  counterparts,  each of which so executed shall be deemed to be an
original,  but all such counterparts  shall together  constitute but one and the
same instrument.

                  SECTION  11.15  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)  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.
<PAGE>

                  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 their  individual
capacities,  (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 their  individual  capacities,  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 their individual capacities, 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  capacities),  and except
that any such partner, owner or beneficiary shall be fully liable, to the extent
provided by  applicable  law,  for any unpaid  consideration  for stock,  unpaid
capital  contribution  or failure to pay any  installment  or call owing to such
entity. For all purposes of this Indenture,  in the performance of any duties or
obligations of the Issuer hereunder,  the Owner Trustee shall be subject to, and
entitled to the  benefits  of, the terms and  provisions  of Article VI, VII and
VIII of the Trust Agreement.

                  SECTION 11.17 No Petition.  The Indenture Trustee, by entering
into this Indenture,  and each Noteholder or Note Owner, by accepting a Note or,
in the case of a Note Owner, a beneficial  interest in a Note,  hereby  covenant
and agree  that they will not at any time  institute  against  the  Seller,  the
General Partner or the Issuer,  or join in any  institution  against the Seller,
the  General  Partner  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,  with
reasonable  prior  notice,  it will permit any  representative  of the Indenture
Trustee,  during the Issuer's normal business hours, to examine all the books of
account,  records,  reports and other  papers of the Issuer,  to make copies and
extracts therefrom,  to cause such books to be audited by Independent  certified
public accountants,  and to discuss the Issuer's affairs,  finances and accounts
with  the  Issuer's  officers,   employees,  and  Independent  certified  public
accountants,  all at such  reasonable  times  and as often as may be  reasonably
requested.  The Indenture Trustee shall and shall cause its  representatives  to
hold in confidence all such information  except to the extent  disclosure may be
required by law (and all reasonable  applications for confidential treatment are
unavailing)  and except to the extent that the Indenture  Trustee may reasonably
determine that such disclosure is consistent with its obligations hereunder.

<PAGE>

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

                                    FORD CREDIT AUTO OWNER TRUST 2000-E

                                  By:    THE BANK OF NEW YORK,
                                         not in its individual capacity but
                                         solely as Owner Trustee of Ford
                                         Credit Auto Owner Trust 2000-E

                                  By:
                                         Name:
                                         Title:

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

                                  By:
                                        Name:
                                        Title:

<PAGE>

                                                                     EXHIBIT A-1

                            [FORM OF CLASS A-1 NOTE]

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

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

THIS NOTE HAS NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933 PURSUANT TO
THE EXEMPTION FROM REGISTRATION SET FORTH IN SECTION 3(a)(3) THEREOF.

REGISTERED                                                          $200,000,000

No. R-1                                                    CUSIP NO. 34527R EP 4

                       FORD CREDIT AUTO OWNER TRUST 2000-E

                       CLASS A-1 6.581% ASSET BACKED NOTES

                  Ford  Credit  Auto  Owner  Trust  2000-E,   a  business  trust
organized and existing under the laws of the State of Delaware  (herein referred
to as the "Issuer"),  for value received,  hereby promises to pay to CEDE & CO.,
or registered assigns,  the principal sum of TWO HUNDRED MILLION DOLLARS payable
on each  Distribution  Date in an amount equal to the aggregate  amount, if any,
payable to  Noteholders  of Class A-1 Notes on such  Distribution  Date from the
Principal  Distribution  Account in respect of  principal on the Class A-1 Notes
pursuant to Section 3.1 of the Indenture  dated as of September 1, 2000 (as from
time to time  amended,  supplemented  or otherwise  modified and in effect,  the
"Indenture"),  between  the  Issuer  and The Chase  Manhattan  Bank,  a New York
corporation,  as Indenture  Trustee (in such capacity the "Indenture  Trustee");
provided, however, that the entire unpaid principal amount of this Note shall be
due and  payable on the  January  2001  Distribution  Date (the "Class A-1 Final
Scheduled Distribution Date"). Capitalized terms used but not defined herein are
defined  in  Article  I of  the  Indenture,  which  also  contains  rules  as to
construction that shall be applicable herein.
<PAGE>

                  The  Issuer  shall pay  interest  on this Note at the rate per
annum shown above on each  Distribution Date until the principal of this Note is
paid or made  available  for  payment,  on the  principal  amount  of this  Note
outstanding  on the  preceding  Distribution  Date (after  giving  effect to all
payments of  principal  made on the  preceding  Distribution  Date),  subject to
certain limitations contained in Section 3.1 of the Indenture.  Interest on this
Note will accrue for each  Distribution  Date from and  including  the  previous
Distribution  Date on which  interest  has  been  paid  (or,  in the case of the
initial  Distribution  Date,  from  the  Closing  Date)  to but  excluding  such
Distribution Date. Interest will be computed on the basis of actual days elapsed
and a 360-day year. Such principal of and interest on this Note shall be paid in
the manner specified on the reverse hereof.

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

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

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

<PAGE>

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

Date: September 26, 2000

                                  FORD CREDIT AUTO OWNER TRUST 2000-E

                                  By:    THE BANK OF NEW YORK,
                                         not in its individual capacity but
                                         solely as Owner Trustee of Ford
                                         Credit Auto Owner Trust 2000-E

                                  By:
                                         Authorized Officer

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Class  A-1 Notes  designated  above  and  referred  to in the
within-mentioned Indenture.

Date: September 26, 2000

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

                                  By:
                                        Authorized Officer

<PAGE>

                                [REVERSE OF NOTE]

                  This  Note is one of a duly  authorized  issue of Notes of the
Issuer,  designated  as its Class A-1 6.581%  Asset Backed Notes (the "Class A-1
Notes")  which,  together with the Issuer's  Class A-2 6.668% Asset Backed Notes
(the  "Class A-2  Notes"),  Class A-3 6.74% Asset  Backed  Notes (the "Class A-3
Notes"),  Class A-4 6.74% Asset Backed Notes (the "Class A-4 Notes"),  Class A-5
6.77% Asset Backed Notes (the "Class A-5 Notes" and, together with the Class A-1
Notes,  the Class A-2 Notes,  the Class A-3 Notes and the Class A-4  Notes,  the
"Class A Notes") and Class B 6.99% Asset  Backed Notes (the "Class B Notes" and,
together with the Class A Notes,  the "Notes"),  are issued under the Indenture,
to which Indenture and all indentures  supplemental  thereto reference is hereby
made for a statement of the respective rights and obligations  thereunder of the
Issuer, the Indenture Trustee and the Noteholders.  The Notes are subject to all
terms of the Indenture.

                  The  Class  A-1  Notes  are and will be  equally  and  ratably
secured by the  collateral  pledged as  security  therefor  as  provided  in the
Indenture.  The Class A-1 Notes are  senior in right of payment to the Class A-2
Notes,  the Class A-3 Notes,  the Class A-4  Notes,  the Class A-5 Notes and the
Class B Notes, each as and to the extent provided in the Indenture.

                  Principal  of the  Class  A-1 Notes  will be  payable  on each
Distribution Date in an amount described on the face hereof. "Distribution Date"
means the  fifteenth  day of each  month,  or, if any such day is not a Business
Day, the next succeeding Business Day, commencing in October 2000.

                  As described on the face hereof,  the entire unpaid  principal
amount of this Note shall be due and  payable  on the Class A-1 Final  Scheduled
Distribution Date.  Notwithstanding  the foregoing,  the entire unpaid principal
amount of the Notes  shall be due and  payable  on the date on which an Event of
Default shall have occurred and be continuing  and the Indenture  Trustee or the
Noteholders of Notes evidencing not less than a majority of the principal amount
of the Class A Notes have declared the Notes to be  immediately  due and payable
in the manner provided in Section 5.2 of the Indenture.  All principal  payments
on the  Class  A-1  Notes  shall be made pro  rata to the  Noteholders  entitled
thereto.
<PAGE>

                  Payments of interest on this Note on each  Distribution  Date,
together with the  installment  of principal,  if any, to the extent not in full
payment of this  Note,  shall be made to the  Person  whose name  appears as the
Registered Noteholder of the Note (or one or more Predecessor Notes) on the Note
Register as of the close of business on each Record Date either by wire transfer
in immediately  available  funds, to the account of such Noteholder at a bank or
other entity having appropriate  facilities  therefor,  if such Noteholder shall
have provided to the Note Registrar  appropriate  written  instructions at least
five (5) Business  Days prior to such  Distribution  Date and such  Noteholder's
Notes in the aggregate evidence a denomination of not less than $1,000,000,  or,
if not, by check mailed first-class  postage prepaid to such Person's address as
it appears on the Note  Register  on such Record  Date;  provided  that,  unless
Definitive  Notes  have  been  issued  to Note  Owners,  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.),  payments  will be made by wire
transfer  in  immediately  available  funds to the  account  designated  by such
nominee.  Such  payments  will be  made  without  requiring  that  this  Note be
submitted for notation of payment. Any reduction in the principal amount of this
Note (or any one or more Predecessor Notes) effected by any payments made on any
Distribution Date shall be binding upon all future  Noteholders of this Note and
of any Note  issued  upon the  registration  of  transfer  hereof or in exchange
hereof or in lieu hereof,  whether or not noted hereon. If funds are expected to
be  available,  as  provided in the  Indenture,  for payment in full of the then
remaining unpaid principal amount of this Note on a Distribution  Date, then the
Indenture Trustee,  in the name of and on behalf of the Issuer,  will notify the
Person who was the Registered  Noteholder hereof as of the Record Date preceding
such  Distribution  Date by notice mailed or transmitted  by facsimile  prior to
such  Distribution  Date,  and the amount then due and payable  shall be payable
only upon  presentation  and surrender of this Note at the  Indenture  Trustee's
principal  Corporate  Trust Office or at the office of the  Indenture  Trustee's
agent appointed for such purposes located in The City of New York.

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

                  As provided in the Indenture,  the Class A Notes and the Class
B Notes may be  redeemed,  in whole but not in part,  in the  manner  and to the
extent described in the Indenture and the Sale and Servicing Agreement.
<PAGE>

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

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

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

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

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

                  The Indenture permits,  with certain exceptions  requiring the
consent of all Noteholders  affected thereby as therein provided,  the amendment
thereof and the modification of the rights and obligations of the Issuer and the
rights of the Noteholders under the Indenture at any time by the Issuer with the
consent of the  Noteholders of Notes  evidencing not less than a majority of the
principal  amount of the Controlling  Note Class. The Indenture also permits the
Indenture  Trustee to amend or waive certain terms and  conditions  set forth in
the Indenture without the consent of the Noteholders provided certain conditions
are satisfied.  In addition,  the Indenture contains  provisions  permitting the
Noteholders of Notes evidencing specified percentages of the principal amount of
the  Notes  Outstanding  or of the  Controlling  Note  Class,  on  behalf of all
Noteholders,  to waive  compliance by the Issuer with certain  provisions of the
Indenture and certain past defaults under the Indenture and their  consequences.
Any such  consent or waiver by the  Noteholder  of this Note (or any one or more
Predecessor Notes) shall be conclusive and binding upon such Noteholder and upon
all future Noteholders of this Note and of any Note issued upon the registration
of  transfer  hereof or in  exchange  hereof or in lieu  hereof  whether  or not
notation of such consent or waiver is made upon this Note.

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

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

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

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

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

                  Anything  herein to the  contrary  notwithstanding,  except as
expressly provided in the Basic Documents,  none of The Chase Manhattan Bank, in
its individual capacity,  The Bank of New York, in its individual capacity,  any
owner  of a  beneficial  interest  in the  Issuer,  or any of  their  respective
partners, beneficiaries, agents, officers, directors, employees or successors or
assigns shall be personally liable for, nor shall recourse be had to any of them
for, the payment of principal or of interest on this Note or performance  of, or
omission to  perform,  any of the  covenants,  obligations  or  indemnifications
contained in the  Indenture.  The  Noteholder  of this Note,  by his  acceptance
hereof, agrees that, except as expressly provided in the Basic Documents, in the
case of an Event of Default under the Indenture,  the  Noteholder  shall have no
claim against any of the foregoing for any deficiency,  loss or claim therefrom;
provided,  however,  that  nothing  contained  herein  shall be taken to prevent
recourse to, and enforcement  against,  the assets of the Issuer for any and all
liabilities,  obligations and undertakings contained in the Indenture or in this
Note.

<PAGE>

                                   ASSIGNMENT

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

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

                         (name and address of assignee)

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

Dated:                                                                  */
                                                     Signature Guaranteed

                                                                        */

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

<PAGE>

                                                                     EXHIBIT A-2

                            [FORM OF CLASS A-2 NOTE]

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

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

THIS NOTE HAS NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933 PURSUANT TO
THE EXEMPTION FROM REGISTRATION SET FORTH IN SECTION 3(a)(3) THEREOF.

REGISTERED                                                          $331,000,000

No. R-[ ]                                                  CUSIP NO. 34527R EQ 2

                       FORD CREDIT AUTO OWNER TRUST 2000-E

                       CLASS A-2 6.668% ASSET BACKED NOTES

                  Ford  Credit  Auto  Owner  Trust  2000-E,   a  business  trust
organized and existing under the laws of the State of Delaware  (herein referred
to as the "Issuer"),  for value received,  hereby promises to pay to CEDE & CO.,
or registered  assigns,  the  principal sum of THREE HUNDRED  THIRTY ONE MILLION
DOLLARS  payable on each  Distribution  Date in an amount equal to the aggregate
amount,  if any, payable to Noteholders of Class A-2 Notes on such  Distribution
Date from the  Principal  Distribution  Account in respect of  principal  on the
Class A-2 Notes  pursuant to Section 3.1 of the Indenture  dated as of September
1, 2000 (as from time to time amended, supplemented or otherwise modified and in
effect, the "Indenture"), between the Issuer and The Chase Manhattan Bank, a New
York  corporation,  as  Indenture  Trustee  (in  such  capacity  the  "Indenture
Trustee");  provided,  however,  that the entire unpaid principal amount of this
Note shall be due and payable on the June 2001 Distribution Date (the "Class A-2
Final  Scheduled  Distribution  Date").  Capitalized  terms used but not defined
herein are defined in Article I of the  Indenture,  which also contains rules as
to construction that shall be applicable herein.
<PAGE>

                  The  Issuer  shall pay  interest  on this Note at the rate per
annum shown above on each  Distribution Date until the principal of this Note is
paid or made  available  for  payment,  on the  principal  amount  of this  Note
outstanding  on the  preceding  Distribution  Date (after  giving  effect to all
payments of  principal  made on the  preceding  Distribution  Date),  subject to
certain limitations contained in Section 3.1 of the Indenture.  Interest on this
Note will accrue for each  Distribution  Date from and  including  the  previous
Distribution  Date on which  interest  has  been  paid  (or,  in the case of the
initial  Distribution  Date,  from  the  Closing  Date)  to but  excluding  such
Distribution Date. Interest will be computed on the basis of actual days elapsed
and a 360-day year. Such principal of and interest on this Note shall be paid in
the manner specified on the reverse hereof.

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

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

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

<PAGE>

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

Date: September 26, 2000

                                  FORD CREDIT AUTO OWNER TRUST 2000-E

                                  By:    THE BANK OF NEW YORK,
                                         not in its individual capacity but
                                         solely as Owner Trustee of Ford
                                         Credit Auto Owner Trust 2000-E

                                  By:
                                         Authorized Officer

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Class  A-2 Notes  designated  above  and  referred  to in the
within-mentioned Indenture.

Date: September 26, 2000

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

                              By:
                                         Authorized Officer

<PAGE>

                                [REVERSE OF NOTE]

                  This  Note is one of a duly  authorized  issue of Notes of the
Issuer,  designated  as its Class A-2 6.668%  Asset Backed Notes (the "Class A-2
Notes")  which,  together with the Issuer's  Class A-1 6.581% Asset Backed Notes
(the  "Class A-1  Notes"),  Class A-3 6.74% Asset  Backed  Notes (the "Class A-3
Notes"),  Class A-4 6.74% Asset Backed Notes (the "Class A-4 Notes"),  Class A-5
6.77% Asset Backed Notes (the "Class A-5 Notes" and, together with the Class A-1
Notes,  the Class A-2 Notes,  the Class A-3 Notes and the Class A-4  Notes,  the
"Class A Notes") and Class B 6.99% Asset  Backed Notes (the "Class B Notes" and,
together with the Class A Notes,  the "Notes"),  are issued under the Indenture,
to which Indenture and all indentures  supplemental  thereto reference is hereby
made for a statement of the respective rights and obligations  thereunder of the
Issuer, the Indenture Trustee and the Noteholders.  The Notes are subject to all
terms of the Indenture.

                  The  Class  A-2  Notes  are and will be  equally  and  ratably
secured by the  collateral  pledged as  security  therefor  as  provided  in the
Indenture. The Class A-2 Notes are subordinated in right of payment to the Class
A-1 Notes and are senior in right of  payment to the Class A-3 Notes,  the Class
A-4 Notes, the Class A-5 Notes and the Class B Notes,  each as and to the extent
provided in the Indenture.

                  Principal  of the  Class  A-2 Notes  will be  payable  on each
Distribution Date in an amount described on the face hereof. "Distribution Date"
means the  fifteenth  day of each  month,  or, if any such day is not a Business
Day, the next succeeding Business Day, commencing in October 2000.

                  As described on the face hereof,  the entire unpaid  principal
amount of this Note shall be due and  payable  on the Class A-2 Final  Scheduled
Distribution Date.  Notwithstanding  the foregoing,  the entire unpaid principal
amount of the Notes  shall be due and  payable  on the date on which an Event of
Default shall have occurred and be continuing  and the Indenture  Trustee or the
Noteholders of Notes evidencing not less than a majority of the principal amount
of the Class A Notes have declared the Notes to be  immediately  due and payable
in the manner provided in Section 5.2 of the Indenture.  All principal  payments
on the  Class  A-2  Notes  shall be made pro  rata to the  Noteholders  entitled
thereto.
<PAGE>

                  Payments of interest on this Note on each  Distribution  Date,
together with the  installment  of principal,  if any, to the extent not in full
payment of this  Note,  shall be made to the  Person  whose name  appears as the
Registered Noteholder of the Note (or one or more Predecessor Notes) on the Note
Register as of the close of business on each Record Date either by wire transfer
in immediately  available  funds, to the account of such Noteholder at a bank or
other entity having appropriate  facilities  therefor,  if such Noteholder shall
have provided to the Note Registrar  appropriate  written  instructions at least
five (5) Business  Days prior to such  Distribution  Date and such  Noteholder's
Notes in the aggregate evidence a denomination of not less than $1,000,000,  or,
if not, by check mailed first-class  postage prepaid to such Person's address as
it appears on the Note  Register  on such Record  Date;  provided  that,  unless
Definitive  Notes  have  been  issued  to Note  Owners,  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.),  payments  will be made by wire
transfer  in  immediately  available  funds to the  account  designated  by such
nominee.  Such  payments  will be  made  without  requiring  that  this  Note be
submitted for notation of payment. Any reduction in the principal amount of this
Note (or any one or more Predecessor Notes) effected by any payments made on any
Distribution Date shall be binding upon all future  Noteholders of this Note and
of any Note  issued  upon the  registration  of  transfer  hereof or in exchange
hereof or in lieu hereof,  whether or not noted hereon. If funds are expected to
be  available,  as  provided in the  Indenture,  for payment in full of the then
remaining unpaid principal amount of this Note on a Distribution  Date, then the
Indenture Trustee,  in the name of and on behalf of the Issuer,  will notify the
Person who was the Registered  Noteholder hereof as of the Record Date preceding
such  Distribution  Date by notice mailed or transmitted  by facsimile  prior to
such  Distribution  Date,  and the amount then due and payable  shall be payable
only upon  presentation  and surrender of this Note at the  Indenture  Trustee's
principal  Corporate  Trust Office or at the office of the  Indenture  Trustee's
agent appointed for such purposes located in The City of New York.

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

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

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

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

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

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

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

                  The Indenture permits,  with certain exceptions  requiring the
consent of all Noteholders  affected thereby as therein provided,  the amendment
thereof and the modification of the rights and obligations of the Issuer and the
rights of the Noteholders under the Indenture at any time by the Issuer with the
consent of the  Noteholders of Notes  evidencing not less than a majority of the
principal  amount of the Controlling  Note Class. The Indenture also permits the
Indenture  Trustee to amend or waive certain terms and  conditions  set forth in
the Indenture without the consent of the Noteholders provided certain conditions
are satisfied.  In addition,  the Indenture contains  provisions  permitting the
Noteholders of Notes evidencing specified percentages of the principal amount of
the  Notes  Outstanding  or of the  Controlling  Note  Class,  on  behalf of all
Noteholders,  to waive  compliance by the Issuer with certain  provisions of the
Indenture and certain past defaults under the Indenture and their  consequences.
Any such  consent or waiver by the  Noteholder  of this Note (or any one or more
Predecessor Notes) shall be conclusive and binding upon such Noteholder and upon
all future Noteholders of this Note and of any Note issued upon the registration
of  transfer  hereof or in  exchange  hereof or in lieu  hereof  whether  or not
notation of such consent or waiver is made upon this Note.

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

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

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

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

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

                  Anything  herein to the  contrary  notwithstanding,  except as
expressly provided in the Basic Documents,  none of The Chase Manhattan Bank, in
its individual capacity,  The Bank of New York, in its individual capacity,  any
owner  of a  beneficial  interest  in the  Issuer,  or any of  their  respective
partners, beneficiaries, agents, officers, directors, employees or successors or
assigns shall be personally liable for, nor shall recourse be had to any of them
for, the payment of principal or of interest on this Note or performance  of, or
omission to  perform,  any of the  covenants,  obligations  or  indemnifications
contained in the  Indenture.  The  Noteholder  of this Note,  by his  acceptance
hereof, agrees that, except as expressly provided in the Basic Documents, in the
case of an Event of Default under the Indenture,  the  Noteholder  shall have no
claim against any of the foregoing for any deficiency,  loss or claim therefrom;
provided,  however,  that  nothing  contained  herein  shall be taken to prevent
recourse to, and enforcement  against,  the assets of the Issuer for any and all
liabilities,  obligations and undertakings contained in the Indenture or in this
Note.

                                   ASSIGNMENT

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

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

                         (name and address of assignee)

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

Dated:                                                                  */
                                                     Signature Guaranteed

                                                                        */

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

<PAGE>

                                                                     EXHIBIT A-3

                            [FORM OF CLASS A-3 NOTE]

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

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

REGISTERED                                                          $995,000,000

No. R-1                                                     CUSIP NO.34527R EK 5

                       FORD CREDIT AUTO OWNER TRUST 2000-E

                       CLASS A-3 6.74% ASSET BACKED NOTES

                  Ford  Credit  Auto  Owner  Trust  2000-E,   a  business  trust
organized and existing under the laws of the State of Delaware  (herein referred
to as the "Issuer"),  for value received,  hereby promises to pay to CEDE & CO.,
or registered  assigns,  the principal sum of NINE HUNDRED  NINETY-FIVE  MILLION
DOLLARS  payable on each  Distribution  Date in an amount equal to the aggregate
amount,  if any, payable to Noteholders of Class A-3 Notes on such  Distribution
Date from the  Principal  Distribution  Account in respect of  principal  on the
Class A-3 Notes  pursuant to Section 3.1 of the Indenture  dated as of September
1, 2000 (as from time to time amended, supplemented or otherwise modified and in
effect, the "Indenture"), between the Issuer and The Chase Manhattan Bank, a New
York  corporation,  as  Indenture  Trustee  (in  such  capacity  the  "Indenture
Trustee");  provided,  however,  that the entire unpaid principal amount of this
Note shall be due and payable on the December 2002 Distribution Date (the "Class
A-3 Final Scheduled Distribution Date").  Capitalized terms used but not defined
herein are defined in Article I of the  Indenture,  which also contains rules as
to construction that shall be applicable herein.
<PAGE>

                  The  Issuer  shall pay  interest  on this Note at the rate per
annum shown above on each  Distribution Date until the principal of this Note is
paid or made  available  for  payment,  on the  principal  amount  of this  Note
outstanding  on the  preceding  Distribution  Date (after  giving  effect to all
payments of  principal  made on the  preceding  Distribution  Date),  subject to
certain limitations contained in Section 3.1 of the Indenture.  Interest on this
Note will accrue for each Distribution Date from and including the fifteenth day
of the calendar month  immediately  preceding such Distribution Date (or, in the
case of the initial  Distribution  Date, from the Closing Date) to but excluding
the fifteenth day of the following calendar month.  Interest will be computed on
the basis of a 360-day  year of twelve  30-day  months.  Such  principal  of and
interest  on this Note  shall be paid in the  manner  specified  on the  reverse
hereof.

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

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

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

<PAGE>

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

Date: September 26, 2000

                                  FORD CREDIT AUTO OWNER TRUST 2000-E

                                  By:    THE BANK OF NEW YORK,
                                         not in its individual capacity but
                                         solely as Owner Trustee of Ford
                                         Credit Auto Owner Trust 2000-E

                                  By:
                                         Authorized Officer

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Class  A-3 Notes  designated  above  and  referred  to in the
within-mentioned Indenture.

Date: September 26, 2000

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

                                  By:
                                         Authorized Officer

<PAGE>

                                [REVERSE OF NOTE]

                  This  Note is one of a duly  authorized  issue of Notes of the
Issuer,  designated  as its Class A-3 6.74% Asset  Backed  Notes (the "Class A-3
Notes")  which,  together with the Issuer's  Class A-1 6.581% Asset Backed Notes
(the "Class A-1  Notes"),  Class A-2 6.668%  Asset  Backed Notes (the "Class A-2
Notes"),  Class A-4 6.74% Asset Backed Notes (the "Class A-4 Notes"),  Class A-5
6.77% Asset Backed Notes (the "Class A-5 Notes" and, together with the Class A-1
Notes,  the Class A-2 Notes,  the Class A-3 Notes and the Class A-4  Notes,  the
"Class A Notes") and Class B 6.99% Asset  Backed Notes (the "Class B Notes" and,
together with the Class A Notes,  the "Notes"),  are issued under the Indenture,
to which Indenture and all indentures  supplemental  thereto reference is hereby
made for a statement of the respective rights and obligations  thereunder of the
Issuer, the Indenture Trustee and the Noteholders.  The Notes are subject to all
terms of the Indenture.

                  The  Class  A-3  Notes  are and will be  equally  and  ratably
secured by the  collateral  pledged as  security  therefor  as  provided  in the
Indenture. The Class A-3 Notes are subordinated in right of payment to the Class
A-1 Notes and the Class  A-2  Notes and are  senior in right of  payment  to the
Class A-4 Notes,  the Class A-5 Notes and the Class B Notes,  each as and to the
extent provided in the Indenture.

                  Principal  of the  Class  A-3 Notes  will be  payable  on each
Distribution Date in an amount described on the face hereof. "Distribution Date"
means the  fifteenth  day of each  month,  or, if any such day is not a Business
Day, the next succeeding Business Day, commencing in October 2000.

                  As described on the face hereof,  the entire unpaid  principal
amount of this Note shall be due and  payable  on the Class A-3 Final  Scheduled
Distribution Date.  Notwithstanding  the foregoing,  the entire unpaid principal
amount of the Notes  shall be due and  payable  on the date on which an Event of
Default shall have occurred and be continuing  and the Indenture  Trustee or the
Noteholders of Notes evidencing not less than a majority of the principal amount
of the Class A Notes have declared the Notes to be  immediately  due and payable
in the manner provided in Section 5.2 of the Indenture.  All principal  payments
on the  Class  A-3  Notes  shall be made pro  rata to the  Noteholders  entitled
thereto.
<PAGE>

                  Payments of interest on this Note on each  Distribution  Date,
together with the  installment  of principal,  if any, to the extent not in full
payment of this  Note,  shall be made to the  Person  whose name  appears as the
Registered Noteholder of the Note (or one or more Predecessor Notes) on the Note
Register as of the close of business on each Record Date either by wire transfer
in immediately  available  funds, to the account of such Noteholder at a bank or
other entity having appropriate  facilities  therefor,  if such Noteholder shall
have provided to the Note Registrar  appropriate  written  instructions at least
five (5) Business  Days prior to such  Distribution  Date and such  Noteholder's
Notes in the aggregate evidence a denomination of not less than $1,000,000,  or,
if not, by check mailed first-class  postage prepaid to such Person's address as
it appears on the Note  Register  on such Record  Date;  provided  that,  unless
Definitive  Notes  have  been  issued  to Note  Owners,  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.),  payments  will be made by wire
transfer  in  immediately  available  funds to the  account  designated  by such
nominee.  Such  payments  will be  made  without  requiring  that  this  Note be
submitted for notation of payment. Any reduction in the principal amount of this
Note (or any one or more Predecessor Notes) effected by any payments made on any
Distribution Date shall be binding upon all future  Noteholders of this Note and
of any Note  issued  upon the  registration  of  transfer  hereof or in exchange
hereof or in lieu hereof,  whether or not noted hereon. If funds are expected to
be  available,  as  provided in the  Indenture,  for payment in full of the then
remaining unpaid principal amount of this Note on a Distribution  Date, then the
Indenture Trustee,  in the name of and on behalf of the Issuer,  will notify the
Person who was the Registered  Noteholder hereof as of the Record Date preceding
such  Distribution  Date by notice mailed or transmitted  by facsimile  prior to
such  Distribution  Date,  and the amount then due and payable  shall be payable
only upon  presentation  and surrender of this Note at the  Indenture  Trustee's
principal  Corporate  Trust Office or at the office of the  Indenture  Trustee's
agent appointed for such purposes located in The City of New York.

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

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

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

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

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

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

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

                  The Indenture permits,  with certain exceptions  requiring the
consent of all Noteholders  affected thereby as therein provided,  the amendment
thereof and the modification of the rights and obligations of the Issuer and the
rights of the Noteholders under the Indenture at any time by the Issuer with the
consent of the  Noteholders of Notes  evidencing not less than a majority of the
principal  amount of the Controlling  Note Class. The Indenture also permits the
Indenture  Trustee to amend or waive certain terms and  conditions  set forth in
the Indenture without the consent of the Noteholders provided certain conditions
are satisfied.  In addition,  the Indenture contains  provisions  permitting the
Noteholders of Notes evidencing specified percentages of the principal amount of
the  Notes  Outstanding  or of the  Controlling  Note  Class,  on  behalf of all
Noteholders,  to waive  compliance by the Issuer with certain  provisions of the
Indenture and certain past defaults under the Indenture and their  consequences.
Any such  consent or waiver by the  Noteholder  of this Note (or any one or more
Predecessor Notes) shall be conclusive and binding upon such Noteholder and upon
all future Noteholders of this Note and of any Note issued upon the registration
of  transfer  hereof or in  exchange  hereof or in lieu  hereof  whether  or not
notation of such consent or waiver is made upon this Note.

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

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

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

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

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

                  Anything  herein to the  contrary  notwithstanding,  except as
expressly provided in the Basic Documents,  none of The Chase Manhattan Bank, in
its individual capacity,  The Bank of New York, in its individual capacity,  any
owner  of a  beneficial  interest  in the  Issuer,  or any of  their  respective
partners, beneficiaries, agents, officers, directors, employees or successors or
assigns shall be personally liable for, nor shall recourse be had to any of them
for, the payment of principal or of interest on this Note or performance  of, or
omission to  perform,  any of the  covenants,  obligations  or  indemnifications
contained in the  Indenture.  The  Noteholder  of this Note,  by his  acceptance
hereof, agrees that, except as expressly provided in the Basic Documents, in the
case of an Event of Default under the Indenture,  the  Noteholder  shall have no
claim against any of the foregoing for any deficiency,  loss or claim therefrom;
provided,  however,  that  nothing  contained  herein  shall be taken to prevent
recourse to, and enforcement  against,  the assets of the Issuer for any and all
liabilities,  obligations and undertakings contained in the Indenture or in this
Note.

<PAGE>

                                   ASSIGNMENT

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

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

                         (name and address of assignee)

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

Dated:                                                                  */
                                                     Signature Guaranteed

                                                                        */

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

<PAGE>

                                                                     EXHIBIT A-4

                            [FORM OF CLASS A-4 NOTE]

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

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

REGISTERED                                                          $995,000,000

No. R-1                                                     CUSIP NO.34527R EL 3

                       FORD CREDIT AUTO OWNER TRUST 2000-E

                       CLASS A-4 6.74% ASSET BACKED NOTES

                  Ford  Credit  Auto  Owner  Trust  2000-E,   a  business  trust
organized and existing under the laws of the State of Delaware  (herein referred
to as the "Issuer"),  for value received,  hereby promises to pay to CEDE & CO.,
or registered  assigns,  the  principal sum of NINE HUNDRED  NINETY FIVE MILLION
DOLLARS  payable on each  Distribution  Date in an amount equal to the aggregate
amount,  if any, payable to Noteholders of Class A-4 Notes on such  Distribution
Date from the  Principal  Distribution  Account in respect of  principal  on the
Class A-4 Notes  pursuant to Section 3.1 of the Indenture  dated as of September
1, 2000 (as from time to time amended, supplemented or otherwise modified and in
effect, the "Indenture"), between the Issuer and The Chase Manhattan Bank, a New
York  corporation,  as  Indenture  Trustee  (in  such  capacity  the  "Indenture
Trustee");  provided,  however,  that the entire unpaid principal amount of this
Note shall be due and payable on the June 2004 Distribution Date (the "Class A-4
Final  Scheduled  Distribution  Date").  Capitalized  terms used but not defined
herein are defined in Article I of the  Indenture,  which also contains rules as
to construction that shall be applicable herein.
<PAGE>

                  The  Issuer  shall pay  interest  on this Note at the rate per
annum shown above on each  Distribution Date until the principal of this Note is
paid or made  available  for  payment,  on the  principal  amount  of this  Note
outstanding  on the  preceding  Distribution  Date (after  giving  effect to all
payments of  principal  made on the  preceding  Distribution  Date),  subject to
certain limitations contained in Section 3.1 of the Indenture.  Interest on this
Note will accrue for each Distribution Date from and including the fifteenth day
of the calendar month  immediately  preceding such Distribution Date (or, in the
case of the initial  Distribution  Date, from the Closing Date) to but excluding
the fifteenth day of the following calendar month.  Interest will be computed on
the basis of a 360-day  year of twelve  30-day  months.  Such  principal  of and
interest  on this Note  shall be paid in the  manner  specified  on the  reverse
hereof.

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

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

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

<PAGE>

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

Date: September 26, 2000

                                  FORD CREDIT AUTO OWNER TRUST 2000-E

                                  By:    THE BANK OF NEW YORK,
                                         not in its individual capacity but
                                         solely as Owner Trustee of Ford
                                         Credit Auto Owner Trust 2000-E

                                  By:
                                         Authorized Officer

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Class  A-4 Notes  designated  above  and  referred  to in the
within-mentioned Indenture.

Date: September 26, 2000

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

                                  By:
                                         Authorized Officer

<PAGE>

                                [REVERSE OF NOTE]

                  This  Note is one of a duly  authorized  issue of Notes of the
Issuer,  designated  as its Class A-4 6.74% Asset  Backed  Notes (the "Class A-4
Notes")  which,  together with the Issuer's  Class A-1 6.581% Asset Backed Notes
(the "Class A-1  Notes"),  Class A-2 6.668%  Asset  Backed Notes (the "Class A-2
Notes"),  Class A-3 6.74% Asset Backed Notes (the "Class A-3 Notes"),  Class A-5
6.77% Asset Backed Notes (the "Class A-5 Notes" and, together with the Class A-1
Notes,  the Class A-2 Notes,  the Class A-3 Notes and the Class A-4  Notes,  the
"Class A Notes") and Class B 6.99% Asset  Backed Notes (the "Class B Notes" and,
together with the Class A Notes,  the "Notes"),  are issued under the Indenture,
to which Indenture and all indentures  supplemental  thereto reference is hereby
made for a statement of the respective rights and obligations  thereunder of the
Issuer, the Indenture Trustee and the Noteholders.  The Notes are subject to all
terms of the Indenture.

                  The  Class  A-4  Notes  are and will be  equally  and  ratably
secured by the  collateral  pledged as  security  therefor  as  provided  in the
Indenture. The Class A-4 Notes are subordinated in right of payment to the Class
A-1  Notes,  the Class A-2 Notes and the Class A-3 Notes and are senior in right
of  payment  to the Class  A-5  Notes and the Class B Notes,  each as and to the
extent provided in the Indenture.

                  Principal  of the  Class  A-4 Notes  will be  payable  on each
Distribution Date in an amount described on the face hereof. "Distribution Date"
means the  fifteenth  day of each  month,  or, if any such day is not a Business
Day, the next succeeding Business Day, commencing in October 2000.

                  As described on the face hereof,  the entire unpaid  principal
amount of this Note shall be due and  payable  on the Class A-4 Final  Scheduled
Distribution Date.  Notwithstanding  the foregoing,  the entire unpaid principal
amount of the Notes  shall be due and  payable  on the date on which an Event of
Default shall have occurred and be continuing  and the Indenture  Trustee or the
Noteholders of Notes evidencing not less than a majority of the principal amount
of the Class A Notes have declared the Notes to be  immediately  due and payable
in the manner provided in Section 5.2 of the Indenture.  All principal  payments
on the  Class  A-4  Notes  shall be made pro  rata to the  Noteholders  entitled
thereto.
<PAGE>

                  Payments of interest on this Note on each  Distribution  Date,
together with the  installment  of principal,  if any, to the extent not in full
payment of this  Note,  shall be made to the  Person  whose name  appears as the
Registered Noteholder of the Note (or one or more Predecessor Notes) on the Note
Register as of the close of business on each Record Date either by wire transfer
in immediately  available  funds, to the account of such Noteholder at a bank or
other entity having appropriate  facilities  therefor,  if such Noteholder shall
have provided to the Note Registrar  appropriate  written  instructions at least
five (5) Business  Days prior to such  Distribution  Date and such  Noteholder's
Notes in the aggregate evidence a denomination of not less than $1,000,000,  or,
if not, by check mailed first-class  postage prepaid to such Person's address as
it appears on the Note  Register  on such Record  Date;  provided  that,  unless
Definitive  Notes  have  been  issued  to Note  Owners,  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.),  payments  will be made by wire
transfer  in  immediately  available  funds to the  account  designated  by such
nominee.  Such  payments  will be  made  without  requiring  that  this  Note be
submitted for notation of payment. Any reduction in the principal amount of this
Note (or any one or more Predecessor Notes) effected by any payments made on any
Distribution Date shall be binding upon all future  Noteholders of this Note and
of any Note  issued  upon the  registration  of  transfer  hereof or in exchange
hereof or in lieu hereof,  whether or not noted hereon. If funds are expected to
be  available,  as  provided in the  Indenture,  for payment in full of the then
remaining unpaid principal amount of this Note on a Distribution  Date, then the
Indenture Trustee,  in the name of and on behalf of the Issuer,  will notify the
Person who was the Registered  Noteholder hereof as of the Record Date preceding
such  Distribution  Date by notice mailed or transmitted  by facsimile  prior to
such  Distribution  Date,  and the amount then due and payable  shall be payable
only upon  presentation  and surrender of this Note at the  Indenture  Trustee's
principal  Corporate  Trust Office or at the office of the  Indenture  Trustee's
agent appointed for such purposes located in The City of New York.

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

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

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

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

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

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

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

                  The Indenture permits,  with certain exceptions  requiring the
consent of all Noteholders  affected thereby as therein provided,  the amendment
thereof and the modification of the rights and obligations of the Issuer and the
rights of the Noteholders under the Indenture at any time by the Issuer with the
consent of the  Noteholders of Notes  evidencing not less than a majority of the
principal  amount of the Controlling  Note Class. The Indenture also permits the
Indenture  Trustee to amend or waive certain terms and  conditions  set forth in
the Indenture without the consent of the Noteholders provided certain conditions
are satisfied.  In addition,  the Indenture contains  provisions  permitting the
Noteholders of Notes evidencing specified percentages of the principal amount of
the  Notes  Outstanding  or of the  Controlling  Note  Class,  on  behalf of all
Noteholders,  to waive  compliance by the Issuer with certain  provisions of the
Indenture and certain past defaults under the Indenture and their  consequences.
Any such  consent or waiver by the  Noteholder  of this Note (or any one or more
Predecessor Notes) shall be conclusive and binding upon such Noteholder and upon
all future Noteholders of this Note and of any Note issued upon the registration
of  transfer  hereof or in  exchange  hereof or in lieu  hereof  whether  or not
notation of such consent or waiver is made upon this Note.

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

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

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

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

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

                  Anything  herein to the  contrary  notwithstanding,  except as
expressly provided in the Basic Documents,  none of The Chase Manhattan Bank, in
its individual capacity,  The Bank of New York, in its individual capacity,  any
owner  of a  beneficial  interest  in the  Issuer,  or any of  their  respective
partners, beneficiaries, agents, officers, directors, employees or successors or
assigns shall be personally liable for, nor shall recourse be had to any of them
for, the payment of principal or of interest on this Note or performance  of, or
omission to  perform,  any of the  covenants,  obligations  or  indemnifications
contained in the  Indenture.  The  Noteholder  of this Note,  by his  acceptance
hereof, agrees that, except as expressly provided in the Basic Documents, in the
case of an Event of Default under the Indenture,  the  Noteholder  shall have no
claim against any of the foregoing for any deficiency,  loss or claim therefrom;
provided,  however,  that  nothing  contained  herein  shall be taken to prevent
recourse to, and enforcement  against,  the assets of the Issuer for any and all
liabilities,  obligations and undertakings contained in the Indenture or in this
Note.

<PAGE>

                                   ASSIGNMENT

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

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

                         (name and address of assignee)

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

Dated:                                                                  */
                                                     Signature Guaranteed

                                                                        */

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

<PAGE>

                                                                     EXHIBIT A-5

                            [FORM OF CLASS A-5 NOTE]

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

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

REGISTERED                                                          $181,308,000

No. R-1                                                    CUSIP NO. 34527R EM 1

                       FORD CREDIT AUTO OWNER TRUST 2000-E

                       CLASS A-5 6.77% ASSET BACKED NOTES

                  Ford  Credit  Auto  Owner  Trust  2000-E,   a  business  trust
organized and existing under the laws of the State of Delaware  (herein referred
to as the "Issuer"),  for value received,  hereby promises to pay to CEDE & CO.,
or registered assigns, the principal sum of ONE HUNDRED EIGHTY-ONE MILLION THREE
HUNDRED EIGHT THOUSAND  DOLLARS payable on each  Distribution  Date in an amount
equal to the aggregate amount, if any, payable to Noteholders of Class A-5 Notes
on such Distribution Date from the Principal  Distribution Account in respect of
principal on the Class A-5 Notes pursuant to Section 3.1 of the Indenture  dated
as of September 1, 2000 (as from time to time amended, supplemented or otherwise
modified  and in  effect,  the  "Indenture"),  between  the Issuer and The Chase
Manhattan Bank, a New York  corporation,  as Indenture Trustee (in such capacity
the "Indenture  Trustee");  provided,  however, that the entire unpaid principal
amount of this Note shall be due and payable on the earlier of the October  2004
Distribution  Date (the "Class A-5 Final Scheduled  Distribution  Date") and the
Redemption  Date,  if  any,  pursuant  to  Section  10.1(a)  of  the  Indenture.
Capitalized  terms used but not  defined  herein are defined in Article I of the
Indenture, which also contains rules as to construction that shall be applicable
herein.
<PAGE>

                  The  Issuer  shall pay  interest  on this Note at the rate per
annum shown above on each  Distribution Date until the principal of this Note is
paid or made  available  for  payment,  on the  principal  amount  of this  Note
outstanding  on the  preceding  Distribution  Date (after  giving  effect to all
payments of  principal  made on the  preceding  Distribution  Date),  subject to
certain limitations contained in Section 3.1 of the Indenture.  Interest on this
Note will accrue for each Distribution Date from and including the fifteenth day
of the calendar month  immediately  preceding such Distribution Date (or, in the
case of the initial  Distribution  Date, from the Closing Date) to but excluding
the fifteenth day of the following calendar month.  Interest will be computed on
the basis of a 360-day  year of twelve  30-day  months.  Such  principal  of and
interest  on this Note  shall be paid in the  manner  specified  on the  reverse
hereof.

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

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

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

<PAGE>

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

Date: September 26, 2000

                                  FORD CREDIT AUTO OWNER TRUST 2000-E

                                  By:    THE BANK OF NEW YORK,
                                         not in its individual capacity but
                                         solely as Owner Trustee of Ford
                                         Credit Auto Owner Trust 2000-E

                                  By:
                                         Authorized Officer

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Class  A-5 Notes  designated  above  and  referred  to in the
within-mentioned Indenture.

Date: September 26, 2000

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

                                  By:
                                         Authorized Officer

<PAGE>

                                [REVERSE OF NOTE]

                  This  Note is one of a duly  authorized  issue of Notes of the
Issuer,  designated  as its Class A-5 6.77% Asset  Backed  Notes (the "Class A-5
Notes")  which,  together with the Issuer's  Class A-1 6.581% Asset Backed Notes
(the "Class A-1  Notes"),  Class A-2 6.668%  Asset  Backed Notes (the "Class A-2
Notes"),  Class A-3 6.74% Asset Backed Notes (the "Class A-3 Notes"),  Class A-4
6.74% Asset Backed Notes (the "Class A-4 Notes" and, together with the Class A-1
Notes,  the Class A-2 Notes,  the Class A-3 Notes and the Class A-5  Notes,  the
"Class A Notes") and Class B 6.99% Asset  Backed Notes (the "Class B Notes" and,
together with the Class A Notes,  the "Notes"),  are issued under the Indenture,
to which Indenture and all indentures  supplemental  thereto reference is hereby
made for a statement of the respective rights and obligations  thereunder of the
Issuer, the Indenture Trustee and the Noteholders.  The Notes are subject to all
terms of the Indenture.

                  The  Class  A-5  Notes  are and will be  equally  and  ratably
secured by the  collateral  pledged as  security  therefor  as  provided  in the
Indenture. The Class A-5 Notes are subordinated in right of payment to the Class
A-1 Notes,  the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes and
are senior in right of  payment to the Class B Notes,  each as and to the extent
provided in the Indenture.

                  Principal  of the  Class  A-5 Notes  will be  payable  on each
Distribution Date in an amount described on the face hereof. "Distribution Date"
means the  fifteenth  day of each  month,  or, if any such day is not a Business
Day, the next succeeding Business Day, commencing in October 2000.

                  As described on the face hereof,  the entire unpaid  principal
amount of this Note  shall be due and  payable  on the  earlier of the Class A-5
Final Scheduled  Distribution  Date and the Redemption Date, if any, pursuant to
Section  10.1(a) of the Indenture.  Notwithstanding  the  foregoing,  the entire
unpaid  principal  amount of the Notes  shall be due and  payable on the date on
which an  Event  of  Default  shall  have  occurred  and be  continuing  and the
Indenture  Trustee  or the  Noteholders  of Notes  evidencing  not  less  than a
majority of the principal amount of the Class A Notes have declared the Notes to
be  immediately  due and  payable in the manner  provided  in Section 5.2 of the
Indenture.  All principal payments on the Class A-5 Notes shall be made pro rata
to the Noteholders entitled thereto.
<PAGE>

                  Payments of interest on this Note on each  Distribution  Date,
together with the  installment  of principal,  if any, to the extent not in full
payment of this  Note,  shall be made to the  Person  whose name  appears as the
Registered Noteholder of the Note (or one or more Predecessor Notes) on the Note
Register as of the close of business on each Record Date either by wire transfer
in immediately  available  funds, to the account of such Noteholder at a bank or
other entity having appropriate  facilities  therefor,  if such Noteholder shall
have provided to the Note Registrar  appropriate  written  instructions at least
five (5) Business  Days prior to such  Distribution  Date and such  Noteholder's
Notes in the aggregate evidence a denomination of not less than $1,000,000,  or,
if not, by check mailed first-class  postage prepaid to such Person's address as
it appears on the Note  Register  on such Record  Date;  provided  that,  unless
Definitive  Notes  have  been  issued  to Note  Owners,  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.),  payments  will be made by wire
transfer  in  immediately  available  funds to the  account  designated  by such
nominee.  Such  payments  will be  made  without  requiring  that  this  Note be
submitted for notation of payment. Any reduction in the principal amount of this
Note (or any one or more Predecessor Notes) effected by any payments made on any
Distribution Date shall be binding upon all future  Noteholders of this Note and
of any Note  issued  upon the  registration  of  transfer  hereof or in exchange
hereof or in lieu hereof,  whether or not noted hereon. If funds are expected to
be  available,  as  provided in the  Indenture,  for payment in full of the then
remaining unpaid principal amount of this Note on a Distribution  Date, then the
Indenture Trustee,  in the name of and on behalf of the Issuer,  will notify the
Person who was the Registered  Noteholder hereof as of the Record Date preceding
such  Distribution  Date by notice mailed or transmitted  by facsimile  prior to
such  Distribution  Date,  and the amount then due and payable  shall be payable
only upon  presentation  and surrender of this Note at the  Indenture  Trustee's
principal  Corporate  Trust Office or at the office of the  Indenture  Trustee's
agent appointed for such purposes located in The City of New York.

                  The  Issuer  shall pay  interest  on overdue  installments  of
interest at the Class A-5 Rate to the extent lawful.

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

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

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

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

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

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

                  The Indenture permits,  with certain exceptions  requiring the
consent of all Noteholders  affected thereby as therein provided,  the amendment
thereof and the modification of the rights and obligations of the Issuer and the
rights of the Noteholders under the Indenture at any time by the Issuer with the
consent of the  Noteholders of Notes  evidencing not less than a majority of the
principal  amount of the Controlling  Note Class. The Indenture also permits the
Indenture  Trustee to amend or waive certain terms and  conditions  set forth in
the Indenture without the consent of the Noteholders provided certain conditions
are satisfied.  In addition,  the Indenture contains  provisions  permitting the
Noteholders of Notes evidencing specified percentages of the principal amount of
the  Notes  Outstanding  or of the  Controlling  Note  Class,  on  behalf of all
Noteholders,  to waive  compliance by the Issuer with certain  provisions of the
Indenture and certain past defaults under the Indenture and their  consequences.
Any such  consent or waiver by the  Noteholder  of this Note (or any one or more
Predecessor Notes) shall be conclusive and binding upon such Noteholder and upon
all future Noteholders of this Note and of any Note issued upon the registration
of  transfer  hereof or in  exchange  hereof or in lieu  hereof  whether  or not
notation of such consent or waiver is made upon this Note.

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

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

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

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

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

                  Anything  herein to the  contrary  notwithstanding,  except as
expressly provided in the Basic Documents,  none of The Chase Manhattan Bank, in
its individual capacity,  The Bank of New York, in its individual capacity,  any
owner  of a  beneficial  interest  in the  Issuer,  or any of  their  respective
partners, beneficiaries, agents, officers, directors, employees or successors or
assigns shall be personally liable for, nor shall recourse be had to any of them
for, the payment of principal or of interest on this Note or performance  of, or
omission to  perform,  any of the  covenants,  obligations  or  indemnifications
contained in the  Indenture.  The  Noteholder  of this Note,  by his  acceptance
hereof, agrees that, except as expressly provided in the Basic Documents, in the
case of an Event of Default under the Indenture,  the  Noteholder  shall have no
claim against any of the foregoing for any deficiency,  loss or claim therefrom;
provided,  however,  that  nothing  contained  herein  shall be taken to prevent
recourse to, and enforcement  against,  the assets of the Issuer for any and all
liabilities,  obligations and undertakings contained in the Indenture or in this
Note.

<PAGE>

                                   ASSIGNMENT

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

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

                         (name and address of assignee)

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

Dated:                                                                  */
                                                     Signature Guaranteed

                                                                        */

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

<PAGE>

                                                                       EXHIBIT B

                             [FORM OF CLASS B NOTE]

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

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

REGISTERED                                                          $100,086,000

No. R-1                                                     CUSIP NO.34527R EN 9

                       FORD CREDIT AUTO OWNER TRUST 2000-E

                        CLASS B 6.99% ASSET BACKED NOTES

                  Ford  Credit  Auto  Owner  Trust  2000-E,   a  business  trust
organized and existing under the laws of the State of Delaware  (herein referred
to as the "Issuer"),  for value received,  hereby promises to pay to CEDE & CO.,
or  registered  assigns,  the principal  sum of ONE HUNDRED  MILLION  EIGHTY-SIX
THOUSAND  DOLLARS  payable on each  Distribution  Date in an amount equal to the
aggregate  amount,  if any,  payable  to  Noteholders  of  Class B Notes on such
Distribution  Date  from  the  Principal  Distribution  Account  in  respect  of
principal on the Class B Notes pursuant to Section 3.1 of the Indenture dated as
of September 1, 2000 (as from time to time  amended,  supplemented  or otherwise
modified  and in  effect,  the  "Indenture"),  between  the Issuer and The Chase
Manhattan Bank, a New York  corporation,  as Indenture Trustee (in such capacity
the "Indenture  Trustee");  provided,  however, that the entire unpaid principal
amount of this Note shall be due and payable on the earlier of the February 2005
Distribution  Date (the  "Class B Final  Scheduled  Distribution  Date") and the
Redemption  Date,  if  any,  pursuant  to  Section  10.1(a)  of  the  Indenture.
Capitalized  terms used but not  defined  herein are defined in Article I of the
Indenture, which also contains rules as to construction that shall be applicable
herein.
<PAGE>

                  The  Issuer  shall pay  interest  on this Note at the rate per
annum shown above on each  Distribution Date until the principal of this Note is
paid or made  available  for  payment,  on the  principal  amount  of this  Note
outstanding  on the  preceding  Distribution  Date (after  giving  effect to all
payments of  principal  made on the  preceding  Distribution  Date),  subject to
certain limitations contained in Section 3.1 of the Indenture.  Interest on this
Note will accrue for each Distribution Date from and including the fifteenth day
of the calendar month  immediately  preceding such Distribution Date (or, in the
case of the initial  Distribution  Date, from the Closing Date) to but excluding
the fifteenth day of the following calendar month.  Interest will be computed on
the basis of a 360-day  year of twelve  30-day  months.  Such  principal  of and
interest  on this Note  shall be paid in the  manner  specified  on the  reverse
hereof.

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

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

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

<PAGE>

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

Date: September 26, 2000

                                  FORD CREDIT AUTO OWNER TRUST 2000-E

                                  By:    THE BANK OF NEW YORK,
                                         not in its individual capacity but
                                         solely as Owner Trustee of Ford
                                         Credit Auto Owner Trust 2000-E

                                  By:
                                         Authorized Officer

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Date: September 26, 2000

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

                                  By:
                                         Authorized Officer

<PAGE>

                                [REVERSE OF NOTE]

                  This  Note is one of a duly  authorized  issue of Notes of the
Issuer,  designated as its Class B 6.99% Asset Backed Notes (the "Class B Notes"
and,  together  with the Class A Notes  referred to below,  the "Notes")  which,
together  with the Issuer's  Class A-1 6.581% Asset Backed Notes (the "Class A-1
Notes"),  Class A-2 6.668% Asset Backed Notes (the "Class A-2 Notes"), Class A-3
6.74% Asset Backed  Notes (the "Class A-3 Notes"),  Class A-4 6.74% Asset Backed
Notes (the "Class A-4 Notes") and Class A-5 6.77% Asset Backed Notes (the "Class
A-5 Notes"  and,  together  with the Class A-1 Notes,  the Class A-2 Notes,  the
Class A-3 Notes and the Class A-4 Notes, the "Class A Notes"),  are issued under
the  Indenture,  to which  Indenture  and all  indentures  supplemental  thereto
reference  is  hereby  made  for  a  statement  of  the  respective  rights  and
obligations thereunder of the Issuer, the Indenture Trustee and the Noteholders.
The Notes are subject to all terms of the Indenture.

                  The Class B Notes are and will be equally and ratably  secured
by the collateral pledged as security therefor as provided in the Indenture. The
Class B Notes are  subordinated  in right of payment to the Class A Notes as and
to the extent provided in the Indenture.

                  Principal  of the  Class  B  Notes  will  be  payable  on each
Distribution Date in an amount described on the face hereof. "Distribution Date"
means the  fifteenth  day of each  month,  or, if any such day is not a Business
Day, the next succeeding Business Day, commencing in October 2000.

                  As described on the face hereof,  the entire unpaid  principal
amount of this Note shall be due and payable on the earlier of the Class B Final
Scheduled Distribution Date and the Redemption Date, if any, pursuant to Section
10.1(a) of the  Indenture.  Notwithstanding  the  foregoing,  the entire  unpaid
principal  amount of the Notes  shall be due and payable on the date on which an
Event of Default shall have occurred and be continuing and the Indenture Trustee
or the Noteholders of Notes evidencing not less than a majority of the principal
amount of the  Controlling  Note Class have declared the Notes to be immediately
due and  payable in the manner  provided in Section  5.2 of the  Indenture.  All
principal  payments  on the  Class  B  Notes  shall  be  made  pro  rata  to the
Noteholders entitled thereto.
<PAGE>

                  Payments of interest on this Note on each  Distribution  Date,
together with the  installment  of principal,  if any, to the extent not in full
payment of this  Note,  shall be made to the  Person  whose name  appears as the
Registered Noteholder of the Note (or one or more Predecessor Notes) on the Note
Register as of the close of business on each Record Date either by wire transfer
in immediately  available  funds, to the account of such Noteholder at a bank or
other entity having appropriate  facilities  therefor,  if such Noteholder shall
have provided to the Note Registrar  appropriate  written  instructions at least
five (5) Business  Days prior to such  Distribution  Date and such  Noteholder's
Notes in the aggregate evidence a denomination of not less than $1,000,000,  or,
if not, by check mailed first-class  postage prepaid to such Person's address as
it appears on the Note  Register  on such Record  Date;  provided  that,  unless
Definitive  Notes  have  been  issued  to Note  Owners,  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.),  payments  will be made by wire
transfer  in  immediately  available  funds to the  account  designated  by such
nominee.  Such  payments  will be  made  without  requiring  that  this  Note be
submitted for notation of payment. Any reduction in the principal amount of this
Note (or any one or more Predecessor Notes) effected by any payments made on any
Distribution Date shall be binding upon all future  Noteholders of this Note and
of any Note  issued  upon the  registration  of  transfer  hereof or in exchange
hereof or in lieu hereof,  whether or not noted hereon. If funds are expected to
be  available,  as  provided in the  Indenture,  for payment in full of the then
remaining unpaid principal amount of this Note on a Distribution  Date, then the
Indenture Trustee,  in the name of and on behalf of the Issuer,  will notify the
Person who was the Registered  Noteholder hereof as of the Record Date preceding
such  Distribution  Date by notice mailed or transmitted  by facsimile  prior to
such  Distribution  Date,  and the amount then due and payable  shall be payable
only upon  presentation  and surrender of this Note at the  Indenture  Trustee's
principal  Corporate  Trust Office or at the office of the  Indenture  Trustee's
agent appointed for such purposes located in The City of New York.

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

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

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

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

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

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

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

                  The Indenture permits,  with certain exceptions  requiring the
consent of all Noteholders  affected thereby as therein provided,  the amendment
thereof and the modification of the rights and obligations of the Issuer and the
rights of the Noteholders under the Indenture at any time by the Issuer with the
consent of the  Noteholders of Notes  evidencing not less than a majority of the
principal  amount of the Controlling  Note Class. The Indenture also permits the
Indenture  Trustee to amend or waive certain terms and  conditions  set forth in
the Indenture without the consent of the Noteholders provided certain conditions
are satisfied.  In addition,  the Indenture contains  provisions  permitting the
Noteholders of Notes evidencing specified percentages of the principal amount of
the  Notes  Outstanding  or of the  Controlling  Note  Class,  on  behalf of all
Noteholders,  to waive  compliance by the Issuer with certain  provisions of the
Indenture and certain past defaults under the Indenture and their  consequences.
Any such  consent or waiver by the  Noteholder  of this Note (or any one or more
Predecessor Notes) shall be conclusive and binding upon such Noteholder and upon
all future Noteholders of this Note and of any Note issued upon the registration
of  transfer  hereof or in  exchange  hereof or in lieu  hereof  whether  or not
notation of such consent or waiver is made upon this Note.

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

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

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

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

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

                  Anything  herein to the  contrary  notwithstanding,  except as
expressly provided in the Basic Documents,  none of The Chase Manhattan Bank, in
its individual capacity,  The Bank of New York, in its individual capacity,  any
owner  of a  beneficial  interest  in the  Issuer,  or any of  their  respective
partners, beneficiaries, agents, officers, directors, employees or successors or
assigns shall be personally liable for, nor shall recourse be had to any of them
for, the payment of principal or of interest on this Note or performance  of, or
omission to  perform,  any of the  covenants,  obligations  or  indemnifications
contained in the  Indenture.  The  Noteholder  of this Note,  by his  acceptance
hereof, agrees that, except as expressly provided in the Basic Documents, in the
case of an Event of Default under the Indenture,  the  Noteholder  shall have no
claim against any of the foregoing for any deficiency,  loss or claim therefrom;
provided,  however,  that  nothing  contained  herein  shall be taken to prevent
recourse to, and enforcement  against,  the assets of the Issuer for any and all
liabilities,  obligations and undertakings contained in the Indenture or in this
Note.

<PAGE>

                                   ASSIGNMENT

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

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

                         (name and address of assignee)

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

Dated:                                                                  */
                                                     Signature Guaranteed

                                                                        */

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

<PAGE>

                                                                       Exhibit C

                       [FORM OF NOTE DEPOSITORY AGREEMENT]

<PAGE>

                                                                      SCHEDULE A

                             Schedule of Receivables

               [Provided to the Indenture Trustee at the Closing]

<PAGE>

                                                                      APPENDIX A

                              Definitions and UsageExhibit 4.2

                              AMENDED AND RESTATED

                                 TRUST AGREEMENT

                                      among

                       FORD CREDIT AUTO RECEIVABLES TWO L.P.

                                  as Depositor,

                          THE BANK OF NEW YORK (DELAWARE),

                               as Delaware Trustee

                                       and

                              THE BANK OF NEW YORK,

                                as Owner Trustee

                          Dated as of September 1, 2000

<PAGE>

<TABLE>
<CAPTION>

                                           TABLE OF CONTENTS

                                                                                                 Page
<S>                                                                                              <C>

                                               ARTICLE I

DEFINITIONS AND USAGE...............................................................................1

                                               ARTICLE II

ORGANIZATION OF THE TRUST...........................................................................2

SECTION 2.1  Name...................................................................................2
SECTION 2.2  Offices................................................................................2
SECTION 2.3  Purposes and Powers....................................................................2
SECTION 2.4  Appointment of Owner Trustee...........................................................3
SECTION 2.5  Appointment of Delaware Trustee........................................................3
SECTION 2.6  Capital Contribution of Owner
               Trust Estate.........................................................................4
SECTION 2.7  Declaration of Trust...................................................................4
SECTION 2.8  Liability of the Depositor.............................................................5
SECTION 2.9  Title to Trust Property................................................................6
SECTION 2.10 Situs of Trust.........................................................................6
SECTION 2.11 Representations and Warranties of the
               Depositor............................................................................6
SECTION 2.12  Federal Income Tax Matters............................................................8

                                                ARTICLE III

TRUST CERTIFICATES AND TRANSFER OF INTERESTS.......................................................11

SECTION 3.1  Initial Beneficial Ownership..........................................................11
SECTION 3.2  Capital Accounts......................................................................11
SECTION 3.3  The Certificates......................................................................12
SECTION 3.4  Authentication of Certificates........................................................12
SECTION 3.5  Registration of Certificates; Transfer
               and Exchange of Certificates........................................................13
SECTION 3.6  Mutilated, Destroyed, Lost or Stolen
               Certificates........................................................................20
SECTION 3.7  Persons Deemed Owners of Certificates.................................................20
SECTION 3.8  Access to List of Certificateholders
               Names and Addresses.................................................................20
SECTION 3.9  Maintenance of Office or Agency.......................................................21
SECTION 3.10 Appointment of Certificate
               Paying Agent........................................................................21
SECTION 3.11 Certain Rights of Depositor...........................................................22
<PAGE>

                                                ARTICLE IV

ACTIONS BY OWNER TRUSTEE...........................................................................23

SECTION 4.1  Prior Notice to Certificateholders with
               Respect to Certain Matters..........................................................23
SECTION 4.2  Action by Certificateholders with Respect
               to Certain Matters..................................................................24
SECTION 4.3  Action by Certificateholders with
               Respect to Bankruptcy...............................................................25
SECTION 4.4  Restrictions on Certificateholders'
               Power...............................................................................25
SECTION 4.5  Majority Control......................................................................25

                                                ARTICLE V

APPLICATION OF TRUST FUNDS; CERTAIN DUTIES.........................................................25

SECTION 5.1  Establishment of Certificate
               Distribution Account................................................................25
SECTION 5.2  Application of Trust Funds............................................................26
SECTION 5.3  Method of Payment.....................................................................29
SECTION 5.4  No Segregation of Monies; No Interest.................................................29
SECTION 5.5  Accounting and Reports to Noteholders,
             Certificateholders, Internal Revenue
                Service and Others.................................................................29
SECTION 5.6  Signature on Returns; Tax Matters
               Partner.............................................................................30

                                               ARTICLE VI

AUTHORITY AND DUTIES OF OWNER TRUSTEE..............................................................30

SECTION 6.1  General Authority.....................................................................30
SECTION 6.2  General Duties........................................................................31
SECTION 6.3  Action upon Instruction...............................................................32
SECTION 6.4  No Duties Except as Specified in this
               Agreement or in Instructions........................................................33
SECTION 6.5  No Action Except Under Specified Documents
               or Instructions.....................................................................34
SECTION 6.6  Restrictions..........................................................................34
<PAGE>

                                              ARTICLE VII

REGARDING THE OWNER TRUSTEE
AND THE DELAWARE TRUSTEE...........................................................................34

SECTION 7.1  Acceptance of Trusts and Duties.......................................................34
SECTION 7.2  Furnishing of Documents...............................................................36
SECTION 7.3  Representations and Warranties........................................................37
SECTION 7.4  Reliance; Advice of Counsel...........................................................38
SECTION 7.5  Not Acting in Individual Capacity.....................................................39
SECTION 7.6  Owner Trustee Not Liable for
               Certificates or Receivables.........................................................39
SECTION 7.7  Co-Trustees May Own Certificates
               and Notes...........................................................................40

                                              ARTICLE VIII

COMPENSATION AND INDEMNITY OF OWNER TRUSTEE........................................................40

SECTION 8.1  Owner Trustee's Fees and Expenses.....................................................40
SECTION 8.2  Indemnification.......................................................................41
SECTION 8.3  Payments to Co-Trustees...............................................................41

                                               ARTICLE IX

TERMINATION........................................................................................42

SECTION 9.1  Termination of Trust Agreement........................................................42
SECTION 9.2  Prepayment of Certificates............................................................44

                                                ARTICLE X

SUCCESSOR OWNER TRUSTEES
AND ADDITIONAL OWNER TRUSTEES......................................................................45

SECTION 10.1  Eligibility Requirements for Owner
                Trustee and Delaware Trustee.......................................................45
SECTION 10.2  Resignation or Removal of Owner
                Trustee or the Delaware Trustee....................................................46
SECTION 10.3  Successor Owner Trustee or Delaware
                Trustee............................................................................47
SECTION 10.4  Merger or Consolidation of Owner
                Trustee or Delaware Trustee........................................................49
SECTION 10.5  Compliance with Business Trust
                Statute............................................................................51

<PAGE>

                                               ARTICLE XI

MISCELLANEOUS......................................................................................51

SECTION 11.1  Supplements and Amendments...........................................................51
SECTION 11.2  No Legal Title to Owner Trust Estate
                in Certificateholders..............................................................54
SECTION 11.3  Limitation on Rights of Others.......................................................54
SECTION 11.4  Notices..............................................................................54
SECTION 11.5  Severability.........................................................................55
SECTION 11.6  Separate Counterparts................................................................55
SECTION 11.7  Successors and Assigns...............................................................55
SECTION 11.8  No Petition..........................................................................55
SECTION 11.9  No Recourse..........................................................................56
SECTION 11.10 Headings.............................................................................56
SECTION 11.11 Governing Law........................................................................56
SECTION 11.12 Sale and Servicing Agreement
                Obligations........................................................................56

EXHIBIT A [FORM OF CLASS C CERTIFICATE]...........................................................A-1

EXHIBIT B [FORM OF CLASS D CERTIFICATE]...........................................................B-1

EXHIBIT C [FORM OF INVESTMENT LETTER
           QUALIFIED INSTITUTIONAL BUYER].........................................................C-1

EXHIBIT D [FORM OF INVESTMENT LETTER
           INSTITUTIONAL ACCREDITED INVESTOR].....................................................D-1

EXHIBIT E [FORM OF RULE 144A TRANSFEROR CERTIFICATE]..............................................E-1

EXHIBIT F [FORM OF CERTIFICATE OF TRUST]..........................................................F-1

APPENDIX A [Definitions and Usage]...............................................................AA-1

</TABLE>

<PAGE>

                  AMENDED AND RESTATED TRUST AGREEMENT, dated as of September 1,
2000 (as from time to time amended,  supplemented  or otherwise  modified and in
effect,  this  "Agreement"),  among FORD CREDIT  AUTO  RECEIVABLES  TWO L.P.,  a
Delaware  limited  partnership,  as Depositor,  having its  principal  executive
office at One American  Road,  Dearborn,  Michigan  48126;  THE BANK OF NEW YORK
(DELAWARE),  a Delaware banking  corporation not in its individual  capacity but
solely as Delaware trustee under this Agreement (the "Delaware Trustee"), having
its principal  corporate trust office at White Clay Center,  Route 273,  Newark,
Delaware 19711;  and THE BANK OF NEW YORK, a New York banking  corporation  (the
"Bank"),  not in its  individual  capacity  but  solely as  trustee  under  this
Agreement  (in  such  capacity,  the  "Owner  Trustee"),  having  its  principal
corporate  trust office at 101 Barclay  Street,  Floor 12E,  New York,  New York
10286 for the purpose of  establishing  the Ford Credit Auto Owner Trust 2000-E.
Each of the Delaware  Trustee and the Owner Trustee are referred to individually
as a "Co-Trustee" and collectively as the "Co-Trustees."

                  WHEREAS,  the parties  hereto intend to amend and restate that
certain Trust Agreement, dated as of September 1, 2000, among the Depositor, the
Delaware Trustee and the Owner Trustee, on the terms and conditions  hereinafter
set forth;

                  NOW,  THEREFORE,  in  consideration of the premises and mutual
covenants  herein  contained,  the receipt and  sufficiency  of which are hereby
acknowledged,  the Depositor,  the Delaware Trustee and the Owner Trustee hereby
agree as follows:

                                    ARTICLE I

                             DEFINITIONS AND USAGE

                  Except as  otherwise  specified  herein or as the  context may
otherwise  require,  capitalized terms used but not otherwise defined herein are
defined in Appendix A hereto,  which also contains  rules as to usage that shall
be applicable herein.

 <PAGE>
                                   ARTICLE II

                            ORGANIZATION OF THE TRUST

                  SECTION  2.1 Name.  The Trust created  hereby shall be known
as "Ford  Credit  Auto Owner  Trust  2000-E",  in which name the Owner  Trustee
may conduct  the  business  of the  Trust,  make and  execute  contracts  and
other instruments on behalf of the Trust and sue and be sued on behalf of the
Trust.

                  SECTION 2.2 Offices. The Delaware office of the Trust shall be
in care of the Delaware  Trustee at the Corporate  Trust Office or at such other
address in the State of  Delaware  as the  Delaware  Trustee  may  designate  by
written notice to the Certificateholders and the Depositor.  The New York office
of the Trust shall be in care of the Owner Trustee at the Corporate Trust Office
or at such  other  address  in the  State of New York as the Owner  Trustee  may
designate by written notice to the Certificateholders and the Depositor.

                  SECTION 2.3 Purposes and Powers.  The purpose of the Trust is,
and the Trust  shall have the power and  authority,  to engage in the  following
activities:

                    (i) to issue the Notes  pursuant to the  Indenture,  and the
         Certificates pursuant to this Agreement,  and to sell the Notes and the
         Certificates upon the written order of the Depositor;

                    (ii)  with the  proceeds  of the sale of the  Notes  and the
         Certificates,  to fund the Reserve Account,  to pay the organizational,
         start-up  and  transactional  expenses  of the  Trust,  and to pay  the
         balance to the Depositor pursuant to the Sale and Servicing Agreement;

                    (iii)  to pay interest on and principal of the Notes and
         distributions on the Certificates;

                    (iv) to Grant  the  Owner  Trust  Estate  (other  than  each
         Certificate  Distribution  Account  and the  proceeds  thereof)  to the
         Indenture Trustee pursuant to the Indenture;

                    (v)  to enter into and perform its obligations under the
         Basic Documents to which it is to be a party;
<PAGE>
                    (vi) to engage in those activities,  including entering into
         agreements,  that are  necessary,  suitable or convenient to accomplish
         the foregoing or are incidental thereto or connected therewith; and

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

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

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

                  SECTION 2.5  Appointment  of Delaware  Trustee.  The  Delaware
Trustee  is  appointed  to serve as the  trustee  of the  Trust in the  State of
Delaware  for the sole and limited  purpose of  satisfying  the  requirement  of
Section 3807 of the Delaware Business Trust Statute that the Trust have at least
one trustee with a principal place of business in Delaware. It is understood and
agreed  by the  parties  hereto  and the  Certificateholders  that the  Delaware
Trustee shall have none of the duties or liabilities  of the Owner Trustee.  The
duties of the Delaware  Trustee shall be limited to (a) accepting  legal process
served  on the  Trust in the  State of  Delaware  and (b) the  execution  of any
certificates  required to be filed with the  Secretary  of State of the State of
Delaware which the Delaware  Trustee is required to execute  pursuant to Section
3811 of the Business  Trust  Statute,  and the Delaware  Trustee  shall  provide
prompt  notice to the Owner  Trustee of its  performance  of any such acts.  The
parties hereto and the Certificateholders understand and agree that the Delaware
Trustee  shall not be entitled to exercise  any powers,  nor shall the  Delaware
Trustee  have any of the  duties  and  liabilities,  of the Owner  Trustee.  The
Delaware  Trustee  shall not be liable  for the acts or  omissions  of the Owner
Trustee,  the  Depositor or the Trust.  To the extent that, at law or in equity,
the Delaware  Trustee has duties  (including  fiduciary  duties) and liabilities
relating  thereto  to the  Trust  or to  the  Certificateholders,  it is  hereby
understood  and agreed by the other  parties  hereto and the  Certificateholders
that such duties and  liabilities  are replaced by the duties and liabilities of
the Delaware Trustee  expressly set forth in this Trust Agreement.  The Delaware
Trustee  shall owe no fiduciary or other duties to the Trust or to the Depositor
except as expressly provided for herein.
<PAGE>
                  SECTION 2.6 Capital  Contribution of Owner Trust Estate. As of
September 1, 2000, the Depositor sold, assigned,  transferred,  conveyed and set
over to the Owner Trustee the sum of $1. The Owner Trustee  hereby  acknowledges
receipt  in  trust  from  the  Depositor,  as of  such  date,  of the  foregoing
contribution, which shall constitute the initial Owner Trust Estate and shall be
deposited in the Certificate  Distribution  Account. The Depositor shall pay the
organizational  expenses  of the  Trust as they may  arise  or  shall,  upon the
request of the Owner  Trustee or the Delaware  Trustee,  promptly  reimburse the
Owner  Trustee or the Delaware  Trustee for any such  expenses paid by the Owner
Trustee or the Delaware Trustee. On the Closing Date, the Depositor shall convey
to the Trust the  Trust  Property  and the  Owner  Trustee  shall  convey to the
Depositor the Notes and the Certificates.

                  SECTION 2.7  Declaration  of Trust.  The Owner Trustee  hereby
declares  that it will hold the Owner Trust  Estate in trust upon and subject to
the   conditions   set   forth   herein   for  the  use  and   benefit   of  the
Certificateholders,  subject  to the  obligations  of the Trust  under the Basic
Documents.  It is the  intention  of the  parties  hereto  that  (i)  the  Trust
constitute  a business  trust  under the  Business  Trust  Statute and that this
Agreement  constitute  the governing  instrument of such business trust and (ii)
for  income  and  franchise  tax  purposes,  the  Trust  shall be  treated  as a
partnership,  with the assets of the partnership being the Receivables and other
assets  held  by  the  Trust,   the  partners  of  the  partnership   being  the
Certificateholders and the Depositor and the Notes constituting  indebtedness of
the  partnership.  The parties  agree  that,  unless  otherwise  required by the
appropriate tax authorities, the Depositor, on behalf of the Trust, will file or
cause to be filed  annual or other  necessary  returns,  reports and other forms
consistent with the  characterization of the Trust as a partnership for such tax
purposes.  Effective as of the date  hereof,  the Owner  Trustee  shall have the
rights,  powers and duties set forth  herein and in the Business  Trust  Statute
with  respect to  accomplishing  the  purposes of the Trust.  Together  with the
Delaware Trustee,  the Owner Trustee has filed the Certificate of Trust with the
Secretary of State.
<PAGE>
                  SECTION 2.8 Liability of the  Depositor.  (a)  Notwithstanding
Section 3803 of the Business Trust Statute, the Depositor in its capacity as the
holder of the interests  described in Section 3.11 shall be liable  directly to,
and will  indemnify  each  injured  party  for,  all  losses,  claims,  damages,
liabilities and expenses of the Trust  (including  Expenses,  to the extent that
the assets of the Trust that would  remain if all of the Notes were paid in full
would be insufficient to pay any such losses,  claims,  damages,  liabilities or
expenses, or to the extent that such losses,  claims,  damages,  liabilities and
expenses in fact are not paid out of the Owner Trust  Estate) that the Depositor
would  be  liable  for if  the  Trust  were  a  partnership  under  the  Limited
Partnership  Act in  which  the  Depositor  were a  general  partner;  provided,
however,  that the Depositor shall not be liable to or indemnify  Noteholders or
Note  Owners for any losses  incurred  by  Noteholders  or Note  Owners in their
capacity as holders of or  beneficial  owners of interests  in limited  recourse
debt   secured  by  the  Owner  Trust  Estate  or  be  liable  to  or  indemnify
Certificateholders  for any losses  incurred by the  Certificateholders  if such
losses would  nevertheless  have been incurred if the Certificates  were limited
recourse debt secured by the Owner Trust Estate.  In addition,  any  third-party
creditors of the Trust, or the  arrangement  between the Depositor and the Trust
(other  than in  connection  with the  obligations  described  in the  preceding
sentence  for  which  the  Depositor  shall  not be  liable),  shall  be  deemed
third-party beneficiaries of this paragraph.

                  (b) No  Certificateholder  other  than  the  Depositor  to the
extent set forth in paragraph  (a) of this Section 2.8,  shall have any personal
liability for any liability or obligation of the Trust.

                  SECTION  2.9  Title  to  Trust  Property.  Legal  title to the
entirety of the Owner Trust  Estate shall be vested at all times in the Trust as
a  separate  legal  entity,  except  where  applicable  law in any  jurisdiction
requires  title to any part of the Owner Trust  Estate to be vested in a trustee
or  trustees,  in which  case  title  shall be  deemed to be vested in the Owner
Trustee, a co-trustee and/or a separate trustee, as the case may be.
<PAGE>
                  SECTION 2.10 Situs of Trust.  The Trust shall be  administered
in the State of New York.  All bank accounts  maintained by the Owner Trustee on
behalf of the Trust  shall be located in the State of  Delaware  or the State of
New York.  The Trust  shall not have any  employees  in any state other than the
State of Delaware;  provided,  however,  that nothing  herein shall  restrict or
prohibit  the Bank,  the  Delaware  Trustee  or the Owner  Trustee  from  having
employees within or without the State of Delaware.  Payments will be received by
the Trust only in Delaware or New York,  and payments  will be made by the Trust
only from Delaware or New York.  The  principal  office of the Trust shall be in
care of the Delaware Trustee in the State of Delaware. The Trust shall also have
an office in care of the Owner Trustee in the State of New York.

                  SECTION 2.11  Representations and Warranties of the Depositor.
The  Depositor  hereby  represents  and  warrants  to the Owner  Trustee and the
Delaware Trustee that:

                           (a)  The Depositor is duly organized and validly
existing as a limited partnership in good standing under the laws of the State
of Delaware,  with power and authority to own its  properties  and to  conduct
its  business  as such  properties  are currently owned and such business is
presently conducted.

                           (b)  The Depositor is duly qualified to do business
as a foreign limited partnership in good standing,  and has obtained all
necessary  licenses and approvals in all jurisdictions  in which the ownership
or lease of property or the conduct of its business shall require such
qualifications.
<PAGE>
                           (c)  The Depositor has the power and authority to
execute and deliver this Agreement and to carry out its terms,  and the
Depositor  has full power and authority to sell and assign the property to be
sold and assigned to, and deposited with, the Trust,  and the  Depositor  has
duly  authorized  such sale and  assignment  and deposit  to the Trust;  and the
execution,  delivery  and  performance  of this Agreement has been duly
authorized by the Depositor.

                           (d)  This Agreement constitutes a legal, valid, and
binding obligation of the Depositor,  enforceable  against the  Depositor  in
accordance  with its terms, subject,   as  to   enforceability,   to  applicable
bankruptcy,   insolvency, reorganization,  conservatorship,  receivership,
liquidation  and other similar laws and to general equitable principles.

                           (e)  The consummation of the transactions
contemplated by this Agreement and the fulfillment  of the terms hereof do not
conflict  with,  result in any breach of any of the terms and  provisions  of,
or constitute  (with or without  notice or lapse of time or both) a default
under,  the Certificate of Limited  Partnership or the Limited  Partnership
Agreement,  or any  indenture,  agreement  or other instrument to which the
Depositor is a party or by which it is bound; nor result in the creation or
imposition of any lien upon any of its properties pursuant to the terms of any
such  indenture,  agreement  or other  instrument  (other  than pursuant  to the
Basic  Documents);  nor  violate any law or, to the best of the Depositor's
knowledge, any order, rule or regulation applicable to the Depositor of any
court or of any federal or state regulatory body,  administrative  agency
or other governmental  instrumentality having jurisdiction over the Depositor or
its properties.
<PAGE>
                           (f)  There are no proceedings or investigations
pending or, to the Depositor's best knowledge,  threatened before any court,
regulatory body,  administrative agency or other governmental  instrumentality
having jurisdiction over the Depositor or its properties:  (i) asserting the
invalidity of this Agreement,  the Indenture, any of the other Basic Documents,
the Notes or the Certificates, (ii) seeking to prevent the issuance of the Notes
or the Certificates or the consummation of any of the transactions  contemplated
by this Agreement, the Indenture or any of the other Basic  Documents,
(iii)  seeking any  determination  or ruling that might materially  and
adversely  affect  the  performance  by  the  Depositor  of its obligations
under, or the validity or enforceability of, this Agreement or (iv) which might
adversely  affect the federal income tax  attributes,  or Applicable
Tax State franchise or income tax attributes, of the Notes and the Certificates.

                           (g)  The representations and warranties of the
Depositor in Section 3.1 of the Purchase Agreement are true and correct.

                  SECTION    2.12    Federal    Income    Tax    Matters.    The
Certificateholders  acknowledge that it is their intent and that they understand
it is the intent of the Depositor and the Servicer that, for purposes of federal
income, state and local income and franchise tax and any other income taxes, the
Trust  will be  treated  as a  partnership  and the  Certificateholders  and the
Depositor will be treated as partners in that partnership.  The Depositor hereby
agrees and the  Certificateholders  by acceptance of a Certificate agree to such
treatment and each agrees to take no action  inconsistent  with such  treatment.
For purposes of federal income, state and local income and franchise tax and any
other income taxes each month:

                           (a)  amounts paid to any Certificateholder pursuant
to Section 5.2(a)(i) shall be treated as a guaranteed payment within the meaning
of Section 707(c) of the Code;
<PAGE>
                           (b)  to the extent the characterization provided for
in paragraph (a) of this Section 2.11 is not  respected,  gross  ordinary
income of the Trust for such  month as determined  for  federal  income  tax
purposes  shall be  allocated  among  the Certificateholders of each Class of
Certificates as of the Record Date occurring within such month, in proportion to
their ownership of the Aggregate Certificate Balance  on such  date,  in an
amount up to the sum of (i) the  Accrued  Class C Certificate Interest or
Accrued Class D Certificate Interest, as applicable, for such  Class for such
month,  (ii) the  portion of the  market  discount  on the Receivables  accrued
during such month that is allocable to the excess,  if any, of the aggregate
Initial  Certificate Balance of such class of Certificates over the initial
aggregate issue price of such Class of  Certificates  and (iii) any amount
expected  to be  distributed  to the  Certificateholders  of such  Class
pursuant to Sections 4.6(c) and (d) of the Sale and Servicing  Agreement (to the
extent not  previously  allocated  pursuant to this paragraph (b)) to the extent
necessary to reverse any net loss previously allocated to  Certificateholders of
such  Class (to the extent  not  previously  reversed  pursuant  to this  clause
(iii)); and

                           (c)  thereafter all remaining net income of the Trust
(subject to the modifications set forth below) for such month as  determined
for federal  income tax purposes (and each item of income,  gain,  credit,
loss or deduction  entering  into the computation thereof) shall be allocated
to the Depositor, to the extent thereof.

If the gross ordinary income of the Trust for any month is insufficient  for the
allocations  described in paragraph (b) above,  subsequent gross ordinary income
shall  first  be  allocated  to make up such  shortfall  before  any  allocation
pursuant to paragraph (c) above.  Net losses of the Trust, if any, for any month
as determined  for federal  income tax purposes (and each item of income,  gain,
credit,  loss or  deduction  entering  into the  computation  thereof)  shall be
allocated  to the  Depositor  to the extent the  Depositor,  in its  capacity as
"general  partner," is reasonably  expected to bear the economic  burden of such
net  losses,  and  any  remaining  net  losses  shall  be  allocated  among  the
Certificateholders  as of  the  Record  Date  occurring  within  such  month  in
proportion  to their  ownership  of the  Aggregate  Certificate  Balance on such
Record Date.  The  Depositor is  authorized  to modify the  allocations  in this
paragraph  if  necessary  or  appropriate,  in  its  sole  discretion,  for  the
allocations to fairly reflect the economic income, gain or loss to the Depositor
or the Certificateholders or as otherwise required by the Code.

<PAGE>

                                   ARTICLE III

                  TRUST CERTIFICATES AND TRANSFER OF INTERESTS

                  SECTION 3.1 Initial Beneficial  Ownership.  Upon the formation
of the Trust by the  contribution  by the Depositor  pursuant to Section 2.5 and
until  the  issuance  of the  Certificates,  the  Depositor  shall  be the  sole
beneficial owner of the Owner Trust Estate.

                  SECTION  3.2 Capital  Accounts.  (a) The Owner  Trustee  shall
establish and maintain a separate  bookkeeping account (a "Capital Account") for
the Depositor  and each  Certificateholder.  The initial  balance of the Capital
Account for (i) each  Certificateholder  shall be the amount  initially paid for
such  Certificateholder's  Certificates  and (ii) the Depositor shall be (x) the
fair market value of the Receivables minus (y) the proceeds of the sale of Notes
net of the Reserve Initial Deposit. The Capital Account of the Depositor or each
Certificateholder  shall  also be  increased  by (i) the  dollar  amount  of any
additional cash contributions  made by the Depositor or such  Certificateholder,
as the case may be, (ii) the fair market value of any property (other than cash)
contributed to the Trust by the Depositor or such Certificateholder, as the case
may be (net of any  liabilities  to which the  property is  subject),  and (iii)
allocations to the Depositor or such  Certificateholder,  as the case may be, of
income and gain  (including  income exempt from tax). The Capital Account of the
Depositor or each Certificateholder  shall be decreased by (i) the dollar amount
of any cash  distributions made to the Depositor or such  Certificateholder,  as
the case may be, (ii) the fair market  value of any  property  (other than cash)
distributed to the Depositor or such Certificateholder,  as the case may be (net
of any liabilities to which the property is subject),  (iii)  allocations to the
Depositor or such  Certificateholder,  as the case may be, of loss or deductions
(or  items  thereof),  and (iv) any  allocations  of  expenditures  of the Trust
described in Section 705(a)(2)(B) of the Code.
<PAGE>
                  (b)  Notwithstanding  any other provision of this Agreement to
the  contrary,  the  foregoing  provisions  of this  Section 3.2  regarding  the
maintenance  of Capital  Accounts  shall be  construed  so as to comply with the
provisions of the Treasury  Regulations  promulgated  pursuant to Section 704 of
the Code. The Depositor is hereby  authorized to modify these  provisions to the
minimum extent necessary to comply with such regulations.

                  SECTION 3.3 The Certificates. (a) The Class C Certificates and
the  Class D  Certificates  shall  each  be  issued  in one or more  registered,
definitive,  physical  certificates,  in the form set  forth  in  Exhibit  A and
Exhibit B,  respectively,  in  denominations of at least $20,000 and in integral
multiples of $1,000 in excess thereof. No Certificate may be sold,  transferred,
assigned,  participated,  pledged,  or  otherwise  disposed  of (any such act, a
"Transfer")  to any Person except in accordance  with the  provisions of Section
3.5 and any  attempted  Transfer in  violation  of Section 3.5 shall be null and
void (each a "Void Transfer").

                  (b) The Certificates  shall be executed on behalf of the Trust
by manual or facsimile  signature of an authorized officer of the Owner Trustee.
Certificates bearing the manual or facsimile signatures of individuals who were,
at the time when such signatures shall have been affixed,  authorized to sign on
behalf of the Trust,  shall be validly  issued and  entitled to the  benefits of
this Agreement,  notwithstanding that such individuals or any of them shall have
ceased to be so  authorized  prior to the  authentication  and  delivery of such
Certificates  or did not hold such  offices  at the date of  authentication  and
delivery of such Certificates.

                   (c) If Transfer of the Certificates is permitted  pursuant to
Section 3.5, a transferee of a Certificate shall become a Certificateholder, and
shall  be  entitled  to  the  rights  and  subject  to  the   obligations  of  a
Certificateholder  hereunder upon such transferee's  acceptance of a Certificate
duly registered in such transferee's name pursuant to Section 3.5.
<PAGE>
                  SECTION 3.4 Authentication of Certificates.  Concurrently with
the  initial  sale of the  Receivables  to the  Trust  pursuant  to the Sale and
Servicing Agreement, the Owner Trustee shall cause the Class C Certificates,  in
an aggregate  principal balance equal to the Initial Certificate Balance of such
Class C Certificates,  and the Class D Certificates,  in an aggregate  principal
balance equal to the Initial  Certificate  Balance of such Class D Certificates,
to be executed on behalf of the Trust,  authenticated  and  delivered to or upon
the written  order of the  Depositor,  signed by the chairman of the board,  the
president,  any executive vice president, any vice president, the secretary, any
assistant  secretary,  the treasurer or any  assistant  treasurer of the General
Partner,  without further action by the Depositor, in authorized  denominations.
No  Certificate  shall entitle its  Certificateholder  to any benefit under this
Agreement,  or shall be valid for any purpose, unless there shall appear on such
Certificate a certificate of authentication  substantially in the form set forth
in Exhibit A or Exhibit B, as applicable,  attached hereto executed by the Owner
Trustee by manual signature;  such  authentication  shall constitute  conclusive
evidence that such Certificate shall have been duly  authenticated and delivered
hereunder. All Certificates shall be dated the date of their authentication.

                  SECTION  3.5  Registration  of   Certificates;   Transfer  and
Exchange of Certificates.  (a) The Certificate  Registrar shall keep or cause to
be kept,  at the  office  or  agency  maintained  pursuant  to  Section  3.9,  a
Certificate Register in which, subject to such reasonable  regulations as it may
prescribe,  the Trust shall provide for the  registration of Certificates and of
Transfers and exchanges of  Certificates as herein  provided.  The Bank shall be
the  initial  Certificate  Registrar.  No  Transfer  of a  Certificate  shall be
recognized  except  upon  registration  of  such  Transfer  in  the  Certificate
Register.
<PAGE>
                  (b) Each Class C  Certificate  and Class D  Certificate  shall
bear a  legend  to the  following  effect  unless  determined  otherwise  by the
Administrator  (as certified to the Owner  Trustee in an Officer's  Certificate)
and the Owner Trustee consistent with applicable law:

                  "THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER ANY STATE SECURITIES OR
BLUE SKY LAW OF ANY STATE OF THE UNITED STATES. THE HOLDER HEREOF, BY PURCHASING
THIS  CERTIFICATE,  AGREES FOR THE BENEFIT OF THE TRUST AND THE  DEPOSITOR  THAT
THIS CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY
IN COMPLIANCE  WITH THE SECURITIES ACT AND OTHER  APPLICABLE  LAWS, AND ONLY (1)
PURSUANT TO RULE 144A UNDER THE  SECURITIES  ACT ("RULE  144A") TO A PERSON THAT
THE HOLDER REASONABLY  BELIEVES IS A QUALIFIED  INSTITUTIONAL  BUYER, WITHIN THE
MEANING  OF RULE  l44A (A  "QIB"),  PURCHASING  FOR ITS OWN  ACCOUNT  OR FOR THE
ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED,  IN EACH CASE, THAT THE REOFFER,
RESALE,  PLEDGE,  OR OTHER  TRANSFER  IS BEING  MADE IN  RELIANCE  ON RULE 144A,
SUBJECT  TO (A) THE  RECEIPT  BY THE TRUST AND THE  CERTIFICATE  REGISTRAR  OF A
CERTIFICATE  SUBSTANTIALLY  IN THE  FORM  ATTACHED  AS  EXHIBIT  E TO THE  TRUST
AGREEMENT  AND (B) THE RECEIPT BY THE TRUST AND THE  CERTIFICATE  REGISTRAR OF A
LETTER  SUBSTANTIALLY  IN THE FORM ATTACHED AS EXHIBIT C TO THE TRUST AGREEMENT,
WITH SUCH CHANGES  THEREIN AS MAY BE APPROVED BY THE DEPOSITOR,  (2) PURSUANT TO
AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF
AVAILABLE),  SUBJECT TO THE RECEIPT BY THE TRUST, THE INITIAL  PURCHASER AND THE
CERTIFICATE  REGISTRAR OF SUCH EVIDENCE  ACCEPTABLE TO THE TRUST AND THE INITIAL
PURCHASER THAT SUCH REOFFER,  RESALE,  PLEDGE OR TRANSFER IS IN COMPLIANCE  WITH
THE TRUST AGREEMENT AND THE SECURITIES ACT AND OTHER  APPLICABLE LAWS, (3) TO AN
INSTITUTIONAL   "ACCREDITED   INVESTOR"  WITHIN  THE  MEANING  THEREOF  IN  RULE
501(a)(1),  (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT PURSUANT TO
ANY OTHER  EXEMPTION FROM THE  REGISTRATION  REQUIREMENTS OF THE SECURITIES ACT,
SUBJECT  TO (A) THE  RECEIPT  BY THE TRUST AND THE  CERTIFICATE  REGISTRAR  OF A
LETTER SUBSTANTIALLY IN THE FORM ATTACHED AS EXHIBIT D TO THE TRUST AGREEMENT OR
(B) THE  RECEIPT  BY THE  TRUST,  THE  INITIAL  PURCHASER  AND  THE  CERTIFICATE
REGISTRAR  OF SUCH  OTHER  EVIDENCE  ACCEPTABLE  TO THE  TRUST  AND THE  INITIAL
PURCHASER THAT SUCH REOFFER,  RESALE,  PLEDGE OR TRANSFER IS IN COMPLIANCE  WITH
THE TRUST AGREEMENT AND THE SECURITIES ACT AND OTHER  APPLICABLE LAWS, OR (4) TO
THE DEPOSITOR OR ITS AFFILIATES,  IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE
SECURITIES  LAWS OF THE UNITED  STATES AND  SECURITIES  AND BLUE SKY LAWS OF THE
STATES OF THE UNITED STATES."
<PAGE>
                  As a  condition  to  the  registration  of any  Transfer  of a
Certificate, the prospective transferee of such Certificate shall be required to
represent in writing to the Owner  Trustee,  the  Certificate  Registrar and the
Initial   Purchaser  the   following,   unless   determined   otherwise  by  the
Administrator (as certified to the Owner Trustee in an Officer's Certificate):

                  (i)  It  understands  that  no  subsequent   Transfer  of  the
         Certificates is permitted  unless it causes its proposed  transferee to
         provide  to the  Trust,  the  Certificate  Registrar  and  the  Initial
         Purchaser a letter  substantially in the form of Exhibit C or Exhibit D
         hereof (with such changes therein as may be approved by the Depositor),
         as applicable,  or such other written  statement as the Depositor shall
         prescribe.

                  (ii)  It is either:

                  (A) not, and each account (if any) for which it is  purchasing
                  the  Certificates  is not (1) an  employee  benefit  plan,  as
                  defined in Section  3(3) of ERISA,  that is subject to Title I
                  of ERISA,  (2) a plan  described in Section  4975(e)(1) of the
                  Code  that is  subject  to  Section  4975 of the  Code,  (3) a
                  governmental  plan,  as  defined  in  Section  3(32) of ERISA,
                  subject  to any  federal,  State or local  law  which is, to a
                  material  extent,  similar to the provisions of Section 406 of
                  ERISA  or  Section  4975  of the  Code,  (4) an  entity  whose
                  underlying  assets  include  plan assets by reason of a plan's
                  investment in the entity  (within the meaning of Department of
                  Labor Regulation 29 C.F.R.  ss.  2510.3-101 or otherwise under
                  ERISA) or (5) a person  investing  "plan  assets"  of any such
                  plan  (including  without  limitation,  for  purposes  of this
                  clause  (5),  an  insurance   company  general  account,   but
                  excluding any entity  registered under the Investment  Company
                  Act of 1940, as amended); or

                  (B) an insurance company acting on behalf of a general account
                  and (1) on the date of purchase less than 25% of the assets of
                  such  general   account  (as  reasonably   determined  by  it)
                  constitute  "plan assets" for purposes of Title I of ERISA and
                  Section 4975 of the Code, (2) the purchase and holding of such
                  Certificates  are eligible for exemptive relief under Sections
                  (I) and (III) of Prohibited Transaction Class Exemption 95-60,
                  and (3) the  purchaser  agrees that if, after the  purchaser's
                  initial  acquisition of the  Certificates,  at any time during
                  any calendar quarter 25% or more of the assets of such general
                  account (as  reasonably  determined  by it no less  frequently
                  than each  calendar  quarter)  constitute  "plan  assets"  for
                  purposes  of Title I of ERISA or Section  4975 of the Code and
                  no  exemption  or exception  from the  prohibited  transaction
                  rules  applies to the  continued  holding of the  Certificates
                  under  Section  401(c)  of  ERISA  and the  final  regulations
                  thereunder or under an exemption or  regulation  issued by the
                  United States Department of Labor under ERISA, it will dispose
                  of all  Certificates  then held in its general  account by the
                  end of the next following calendar quarter.
<PAGE>
                  (iii) It is a person who is (A) a citizen or  resident  of the
         United States,  (B) a corporation or partnership  organized in or under
         the laws of the United States or any political subdivision thereof, (c)
         an estate the income of which is  includible in gross income for United
         States tax purposes,  regardless  of its source,  (D) a trust if a U.S.
         court is able to exercise primary  supervision over the  administration
         of such trust and one or more persons described in clause (A), (B), (C)
         or (E) of  this  paragraph  (iii)  has the  authority  to  control  all
         substantial  decisions  of the trust or (E) a person not  described  in
         clauses (A) through (D) of this paragraph  (iii) whose ownership of the
         Certificates is effectively  connected with such person's  conduct of a
         trade or business  within the United States  (within the meaning of the
         Code) and who  provides  the Trust and the  Depositor  with an IRS Form
         4224 (and such other  certifications,  representations,  or opinions of
         counsel as may be requested by the Trust or the Depositor).

                  (iv)  It  understands  that  any  purported  Transfer  of  any
         Certificate (or any interest  therein) in  contravention  of any of the
         restrictions  and  conditions  contained in this Section will be a Void
         Transfer,  and the purported  transferee in a Void Transfer will not be
         recognized by the Trust or any other person as a Certificateholder  for
         any purpose.

                  (c) By acceptance of any  Certificate,  the  Certificateholder
thereof specifically agrees with and represents to the Depositor,  the Trust and
the Certificate  Registrar,  that no Transfer of such Certificate  shall be made
unless the  registration  requirements  of the Securities Act and any applicable
State  securities  laws are complied  with,  or such Transfer is exempt from the
registration   requirements  under  the  Securities  Act  because  the  Transfer
satisfies one of the following:
<PAGE>
                   (i) such Transfer is in  compliance  with Rule 144A under the
         Securities  Act  ("Rule  144A"),  to a  transferee  who the  transferor
         reasonably  believes  is  a  Qualified   Institutional  Buyer  that  is
         purchasing  for  its own  account  or for the  account  of a  Qualified
         Institutional  Buyer and to whom notice is given that such  Transfer is
         being made in reliance upon Rule 144A under the  Securities Act and (x)
         the transferor  executes and delivers to the Trust and the  Certificate
         Registrar, a Rule 144A transferor certificate substantially in the form
         attached as Exhibit E and (y) the  transferee  executes and delivers to
         the  Trust  and  the   Certificate   Registrar  an  investment   letter
         substantially in the form attached as Exhibit C;

                    (ii) after the appropriate  holding period, such Transfer is
         pursuant to an exemption  from  registration  under the  Securities Act
         provided by Rule 144 under the  Securities Act and the  transferee,  if
         requested  by the  Trust,  the  Certificate  Registrar  or the  Initial
         Purchaser,  delivers  an  Opinion  of  Counsel  in form  and  substance
         satisfactory to the Trust and the Initial Purchaser; or

                  (iii) such Transfer is to an institutional accredited investor
         as  defined  in  rule  501(a)(1),  (2),  (3)  or (7)  of  Regulation  D
         promulgated  under the Securities Act in a transaction  exempt from the
         registration  requirements  of the Securities  Act, such Transfer is in
         accordance  with any  applicable  securities  laws of any  State of the
         United States or any other jurisdiction, and such investor executes and
         delivers  to the  Trust and the  Certificate  Registrar  an  investment
         letter substantially in the form attached as Exhibit D.

<PAGE>
                  (d) The  Depositor  shall make  available  to the  prospective
transferor and transferee of a Certificate  information requested to satisfy the
requirements  of paragraph  (d) (4) of Rule 144A (the "Rule 144A  Information").
The Rule  144A  Information  shall  include  any or all of the  following  items
requested by the prospective transferee:

                   (i)  the private placement memorandum, if any, relating to
         the Certificates, and any amendments or supplements thereto;

                   (ii) each statement delivered to Certificateholders  pursuant
         to Section 5.2(b) on each Distribution Date preceding such request; and

                   (iii) such other  information  as is reasonably  available to
         the Owner  Trustee in order to comply  with  requests  for  information
         pursuant to Rule 144A under the Securities Act.

                  None of the Depositor,  the Certificate Registrar or the Owner
Trustee is under an obligation to register any Certificate  under the Securities
Act or any other securities law.

                  (e)  Upon  surrender  for  registration  of  Transfer  of  any
Certificate at the office or agency maintained  pursuant to Section 3.9 and upon
compliance with any provisions of this Agreement relating to such Transfer,  the
Owner  Trustee  shall  execute,  authenticate  and  deliver,  in the name of the
designated transferee or transferees, one or more new Certificates in authorized
denominations   of  a  like  Class  and  aggregate  amount  dated  the  date  of
authentication by the Owner Trustee or any  authenticating  agent. At the option
of a Certificateholder,  Certificates may be exchanged for other Certificates of
authorized  denominations of a like Class and aggregate amount upon surrender of
the Certificates to be exchanged at the office or agency maintained  pursuant to
Section 3.9.
<PAGE>
                  Every Certificate presented or surrendered for registration of
Transfer or exchange shall be accompanied by a written instrument of transfer in
form  satisfactory  to the Owner  Trustee and the  Certificate  Registrar,  duly
executed  by the  Certificateholder  or  his  attorney  in  writing,  with  such
signature  guaranteed  by a member  firm of the New  York  Stock  Exchange  or a
commercial bank or trust company. Each Certificate  surrendered for registration
of Transfer or exchange shall be cancelled and  subsequently  disposed of by the
Certificate Registrar in accordance with its customary practice.

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

                  The preceding  provisions of this Section 3.5 notwithstanding,
the Owner Trustee shall not make and the Certificate Registrar need not register
any  Transfer  or  exchange of  Certificates  for a period of fifteen  (15) days
preceding   any   Distribution   Date  for  any  payment  with  respect  to  the
Certificates.

                  SECTION 3.6 Mutilated, Destroyed, Lost or Stolen Certificates.
(a) If  any  mutilated  Certificate  shall  be  surrendered  to the  Certificate
Registrar,  or if  the  Certificate  Registrar  shall  receive  evidence  to its
satisfaction of the destruction,  loss or theft of any Certificate and (b) there
shall be  delivered  to the  Certificate  Registrar  and the Owner  Trustee such
security or indemnity as may be required by them to save each of them  harmless,
then, in the absence of notice that such Certificate shall have been acquired by
a protected  purchaser,  the Owner  Trustee on behalf of the Trust shall execute
and the Owner Trustee  shall  authenticate  and deliver,  in exchange for, or in
lieu  of,  any such  mutilated,  destroyed,  lost or  stolen  Certificate  a new
Certificate  of like  Class,  tenor and  denomination.  In  connection  with the
issuance of any new Certificate under this Section 3.6, the Owner Trustee or the
Certificate  Registrar may require the payment of a sum  sufficient to cover any
tax or other  governmental  charge that may be imposed in connection  therewith.
Any duplicate  Certificate  issued pursuant to this Section 3.6 shall constitute
conclusive evidence of ownership in the Trust, as if originally issued,  whether
or not the lost, stolen or destroyed Certificate shall be found at any time.
<PAGE>
                  SECTION 3.7 Persons  Deemed Owners of  Certificates.  Prior to
due  presentation  of a  Certificate  for  registration  of Transfer,  the Owner
Trustee,  the Certificate  Registrar and any Certificate  Paying Agent may treat
the Person in whose name any Certificate  shall be registered in the Certificate
Register  as the  owner  of  such  Certificate  for  the  purpose  of  receiving
distributions pursuant to Section 5.2 and for all other purposes whatsoever, and
none of the Owner Trustee,  the Certificate  Registrar or any Certificate Paying
Agent shall be bound by any notice to the contrary.

                  SECTION  3.8 Access to List of  Certificateholders'  Names and
Addresses.  The Owner  Trustee  shall  furnish or cause to be  furnished  to the
Servicer and the  Depositor,  or to the Indenture  Trustee,  within fifteen (15)
days after receipt by the Owner Trustee of a written request  therefore from the
Servicer or the Depositor, or the Indenture Trustee, as the case may be, a list,
in such form as the requesting  party may reasonably  require,  of the names and
addresses of the  Certificateholders as of the most recent Record Date. If three
or more  Certificateholders  or one or more  Certificateholders  of Certificates
evidencing  not less  than 25% of the  Aggregate  Certificate  Balance  apply in
writing to the Owner Trustee,  and such  application  states that the applicants
desire to communicate with other Certificateholders with respect to their rights
under  this  Agreement  or  under  the  Certificates  and  such  application  is
accompanied  by a copy of the  communication  that such  applicants  propose  to
transmit,  then the Owner Trustee shall, within five (5) Business Days after the
receipt  of such  application,  afford  such  applicants  access  during  normal
business   hours   to   the   current   list   of    Certificateholders.    Each
Certificateholder,  by receiving and holding a  Certificate,  shall be deemed to
have agreed not to hold any of the Depositor,  the Certificate  Registrar or the
Owner Trustee  accountable  by reason of the disclosure of its name and address,
regardless of the source from which such information was derived.

                  SECTION 3.9 Maintenance of Office or Agency. The Owner Trustee
shall  maintain  in the State of New York,  an  office or  offices  or agency or
agencies where  Certificates  may be surrendered for registration of Transfer or
exchange and where  notices and demands to or upon the Owner  Trustee in respect
of the  Certificates  and the Basic  Documents may be served.  The Owner Trustee
initially  designates The Bank of New York, l01 Barclay  Street,  Floor 12 East,
New York, New York 10286, Attention:  Asset-Backed Finance Unit as its principal
corporate  trust office for such  purposes.  The Owner Trustee shall give prompt
written notice to the Depositor and to the  Certificateholders  of any change in
the location of the Certificate Registrar or any such office or agency.
<PAGE>
                  SECTION 3.10  Appointment  of  Certificate  Paying Agent.  The
Certificate  Paying Agent shall make  distributions to  Certificateholders  from
each Certificate  Distribution  Account pursuant to Section 5.2 and shall report
the amounts of such  distributions to the Owner Trustee.  Any Certificate Paying
Agent shall have the  revocable  power to withdraw  funds from each  Certificate
Distribution  Account  for the purpose of making the  distributions  referred to
above. The Owner Trustee may revoke such power and remove the Certificate Paying
Agent  if  the  Owner  Trustee  determines  in  its  sole  discretion  that  the
Certificate Paying Agent shall have failed to perform its obligations under this
Agreement in any material respect.  The Certificate Paying Agent shall initially
be the Owner Trustee,  and any co-paying agent chosen by the Owner Trustee.  The
Owner  Trustee  shall be  permitted to resign as  Certificate  Paying Agent upon
thirty (30) days?  written  notice to the Owner  Trustee.  In the event that the
Bank shall no longer be the  Certificate  Paying Agent,  the Owner Trustee shall
appoint a successor to act as Certificate Paying Agent (which shall be a bank or
trust company).  The Owner Trustee shall cause such successor Certificate Paying
Agent or any additional  Certificate Paying Agent appointed by the Owner Trustee
to  execute  and  deliver  to the Owner  Trustee  an  instrument  in which  such
successor Certificate Paying Agent or additional  Certificate Paying Agent shall
agree with the Owner Trustee that as  Certificate  Paying Agent,  such successor
Certificate  Paying Agent or additional  Certificate  Paying Agent will hold all
sums, if any, held by it for payment to the  Certificateholders in trust for the
benefit of the Certificateholders entitled thereto until such sums shall be paid
to such  Certificateholders.  The  Certificate  Paying  Agent  shall  return all
unclaimed  funds to the Owner Trustee and upon removal of a  Certificate  Paying
Agent  such  Certificate  Paying  Agent  shall  also  return  all  funds  in its
possession to the Owner  Trustee.  The  provisions of Sections 7.1, 7.3, 7.4 and
8.1 shall  apply to the Owner  Trustee  also in its role as  Certificate  Paying
Agent,  for so long as the Owner Trustee shall act as  Certificate  Paying Agent
and, to the extent  applicable,  to any other paying agent appointed  hereunder.
Any reference in this  Agreement to the  Certificate  Paying Agent shall include
any co-paying agent unless the context requires otherwise.
<PAGE>
                  SECTION 3.11 Certain Rights of Depositor.  The Depositor shall
be entitled to any amounts not needed on any Distribution  Date to make payments
on the Notes or the  Certificates  or to make  deposits to the  Reserve  Account
pursuant  to Section  4.6 of the Sale and  Servicing  Agreement,  and to receive
amounts  remaining in the Reserve  Account  following the payment in full of the
aggregate  principal amount of the Notes and the Aggregate  Certificate  Balance
and of all  other  amounts  owing or to be  distributed  hereunder  or under the
Indenture   or  the  Sale   and   Servicing   Agreement   to   Noteholders   and
Certificateholders  and the  termination  of the Trust.  The  Depositor  may not
Transfer  any such  rights  unless it shall have  received an Opinion of Counsel
that such Transfer  shall not cause the Trust to be classified as an association
(or publicly traded partnership) taxable as a corporation.

 <PAGE>
                                   ARTICLE IV

                            ACTIONS BY OWNER TRUSTEE

                  SECTION 4.1 Prior Notice to Certificateholders with Respect to
Certain Matters. It is the intention of the Depositor and the Certificateholders
that  the  powers  and  duties  of  the  Owner  Trustee  are   ministerial   and
non-ministerial;  provided,  however, that any non-ministerial action (including
the  taking  of any legal  action)  may only be taken by the  Owner  Trustee  in
accordance  with this Section 4.1.  With respect to the following  matters,  the
Owner Trustee shall not take action unless, (I) at least thirty (30) days before
the  taking  of  such  action,   the  Owner  Trustee  shall  have  notified  the
Certificateholders and the Rating Agencies in writing of the proposed action and
(II)  Certificateholders  holding  not less  than a  majority  of the  Aggregate
Certificate  Balance  shall not have notified the Owner Trustee in writing prior
to the 30th day after  such  notice is given that such  Certificateholders  have
withheld consent or provided alternative direction:

                  (a) the  initiation  of any  material  claim or lawsuit by the
Trust (except claims or lawsuits  brought by the Servicer in connection with the
collection of the Receivables) and the settlement of any material action,  claim
or  lawsuit  brought  by or  against  the  Trust  (except  with  respect  to the
aforementioned  claims  or  lawsuits  for  collection  by  the  Servicer  of the
Receivables);

                  (b) the  election  by the  Trust to file an  amendment  to the
Certificate  of Trust  (unless such  amendment is required to be filed under the
Business Trust Statute);
<PAGE>

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

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

                  (e) the  amendment,  change  or  modification  of the Sale and
Servicing  Agreement  or  the  Administration  Agreement,  except  to  cure  any
ambiguity  or to amend or  supplement  any  provision  in a manner or to add any
provision  that  would not  materially  adversely  affect the  interests  of the
Certificateholders; or

                  (f) the  appointment  pursuant to the Indenture of a successor
Note  Registrar,  Note Paying  Agent or Indenture  Trustee,  or pursuant to this
Agreement of a successor Certificate Registrar, or the consent to the assignment
by the Note  Registrar,  Note Paying Agent or Indenture  Trustee or  Certificate
Registrar  of  its  obligations  under  the  Indenture  or  this  Agreement,  as
applicable.

                  SECTION  4.2  Action by  Certificateholders  with  Respect  to
Certain  Matters.  The Owner Trustee may not,  except upon the  occurrence of an
Event of Servicing  Termination  subsequent  to the payment in full of the Notes
and in accordance with the written direction of  Certificateholders  holding not
less than a  majority  of the  Aggregate  Certificate  Balance,  (a)  remove the
Servicer  under  the Sale and  Servicing  Agreement  pursuant  to  Article  VIII
thereof,  (b) appoint a successor  Servicer pursuant to Article VIII of the Sale
and Servicing  Agreement,  (c) remove the Administrator under the Administration
Agreement pursuant to Section 9 thereof or (d) appoint a successor Administrator
pursuant to Section 9 of the Administration Agreement.
<PAGE>

                  SECTION  4.3  Action by  Certificateholders  with  Respect  to
Bankruptcy.  The Owner  Trustee shall not have the power to commence a voluntary
proceeding in  bankruptcy  relating to the Trust unless the Notes have been paid
in full and each  Certificateholder  (other than the Depositor) approves of such
commencement  in  advance  and  delivers  to the  Owner  Trustee  a  certificate
certifying  that such  Certificateholder  reasonably  believes that the Trust is
insolvent.

                  SECTION 4.4  Restrictions on  Certificateholders'  Power.  The
Certificateholders  shall not direct the Owner  Trustee to take or refrain  from
taking any action if such action or inaction would be contrary to any obligation
of the Trust or the Owner Trustee under this Agreement or any of the other Basic
Documents or would be contrary to Section  2.3,  nor shall the Owner  Trustee be
obligated to follow any such direction, if given.

                  SECTION 4.5 Majority  Control.  Except as  expressly  provided
herein,  any  action  that  may be taken by the  Certificateholders  under  this
Agreement may be taken by the Certificateholders of Certificates  evidencing not
less than a majority of the Aggregate  Certificate Balance.  Except as expressly
provided herein, any written notice of the Certificateholders delivered pursuant
to this  Agreement  shall  be  effective  if  signed  by  Certificateholders  of
Certificates  evidencing  not less than a majority of the Aggregate  Certificate
Balance at the time of the delivery of such notice.

                                    ARTICLE V

                   APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

                  SECTION 5.1 Establishment of Certificate Distribution Account.
Pursuant to Section 4.1(c) of the Sale and Servicing  Agreement,  there has been
established and there shall be maintained two segregated trust accounts, each in
the name of "The Bank of New York, as Owner Trustee" at a Qualified  Institution
or Qualified  Trust  Institution  (which shall  initially be the corporate trust
department of the Bank), which shall be designated as the "Certificate  Interest
Distribution  Account" and the  "Certificate  Principal  Distribution  Account,"
respectively  (each of the  Certificate  Interest  Distribution  Account and the
Certificate  Principal   Distribution   Account,  a  "Certificate   Distribution
Account").  Except as  expressly  provided  in Section  3.10,  each  Certificate
Distribution  Account  shall be under the sole dominion and control of the Owner
Trustee. All monies deposited from time to time in each Certificate Distribution
Account  pursuant  to the Sale and  Servicing  Agreement  shall  be  applied  as
provided  in  the  Basic  Documents.   In  the  event  that  either  Certificate
Distribution  Account  is no  longer to be  maintained  at the  corporate  trust
department of the Bank, the Servicer shall, with the Owner Trustee's  assistance
as  necessary,  cause  such  Certificate  Distribution  Account to be moved to a
Qualified  institution or a Qualified Trust Institution within ten (10) Business
Days (or such longer  period not to exceed thirty (30) calendar days as to which
each Rating Agency may consent).  Each Certificate  Distribution Account will be
established and maintained  pursuant to an account agreement which specifies New
York law as the governing law.
<PAGE>

                  SECTION  5.2   Application   of  Trust  Funds.   (a)  On  each
Distribution Date, the Owner Trustee shall,  based on the information  contained
in the  Servicer's  Certificate  delivered  on the relevant  Determination  Date
pursuant to Section 3.9 of the Sale and Servicing Agreement:

                  (i)  withdraw  the  amounts  deposited  into  the  Certificate
         Interest  Distribution  Account  pursuant to Section 4.6(c) of the Sale
         and Servicing  Agreement on or prior to such Distribution Date and make
         or cause to be made  distributions  and payments in the following order
         of priority:

                           (1)  first,  to the  Certificateholders  of  Class  C
                  Certificates,   an  amount  equal  to  the  Accrued   Class  C
                  Certificate   Interest,   provided   that  if  there  are  not
                  sufficient  funds  available  to pay the entire  amount of the
                  Accrued Class C Certificate  Interest,  the amounts  available
                  shall be applied to the payment of such  interest on the Class
                  C Certificates on a pro rata basis;

                           (2)  second,  to the  Certificateholders  of  Class D
                  Certificates,   an  amount  equal  to  the  Accrued   Class  D
                  Certificate   Interest;   provided   that  if  there  are  not
                  sufficient  funds  available  to pay the entire  amount of the
                  Accrued Class D Certificate  Interest,  the amounts  available
                  shall be applied to the payment of such  interest on the Class
                  D Certificates on a pro rata basis; and

                           (3) third,  to the Depositor,  any funds remaining on
                  deposit in the Certificate Interest Distribution Account.
<PAGE>
                  (ii)  withdraw  the  amounts  deposited  into the  Certificate
         Principal  Distribution  Account  pursuant to Section 4.6(c) and (d) of
         the Sale and Servicing  Agreement on or prior to such Distribution Date
         and  make  or  cause  to be  made  distributions  and  payments  in the
         following order of priority:

                           (1) first, to the  Certificateholders  of the Class C
                  Certificates  in reduction of the  Certificate  Balance of the
                  Class C  Certificates,  until the  Certificate  Balance of the
                  Class C Certificates  has been reduced to zero;  provided that
                  if there are not  sufficient  funds  available  to reduce  the
                  Certificate  Balance of the Class C Certificates  to zero, the
                  amounts  available  shall be applied to the  reduction  of the
                  Certificate  Balance of the Class C Certificates on a pro rata
                  basis;

                           (2) second, to the  Certificateholders of the Class D
                  Certificates  in reduction of the  Certificate  Balance of the
                  Class D  Certificates,  until the  Certificate  Balance of the
                  Class D Certificates  has been reduced to zero;  provided that
                  if there are not  sufficient  funds  available  to reduce  the
                  Certificate  Balance of the Class D Certificates  to zero, the
                  amounts  available  shall be applied to the  reduction  of the
                  Certificate  Balance of the Class D  Certificates  on pro rata
                  basis; and

                           (3) third,  to the Depositor,  any funds remaining on
                  deposit in the Certificate Principal Distribution Account.

                  (b) On each  Distribution  Date, the Owner Trustee  shall,  or
shall cause the Certificate Paying Agent to, send to each  Certificateholder  as
of the related  Record Date the  statement  provided to the Owner Trustee by the
Servicer  pursuant  to  Section  4.9 of the Sale and  Servicing  Agreement  with
respect to such Distribution Date.
<PAGE>
                  (c) In the event  that any  withholding  tax is imposed on the
Trust's  payment (or  allocations  of income) to a  Certificateholder,  such tax
shall reduce the amount  otherwise  distributable to such  Certificateholder  in
accordance with this Section 5.2. The Owner Trustee and each Certificate  Paying
Agent is hereby  authorized  and  directed  to  retain  from  amounts  otherwise
distributable to the Certificateholders  sufficient funds for the payment of any
such  withholding tax that is legally owed by the Trust (but such  authorization
shall not prevent the Owner Trustee from  contesting any such tax in appropriate
proceedings,  and withholding  payment of such tax, if permitted by law, pending
the outcome of such proceedings). The amount of any withholding tax imposed with
respect to a  Certificateholder  shall be treated  as cash  distributed  to such
Certificateholder  at the time it is withheld  by the Trust and  remitted to the
appropriate taxing authority.  If there is a possibility that withholding tax is
payable with respect to a  distribution  (such as a  distribution  to a non-U.S.
Certificateholder), the Owner Trustee may, in its sole discretion, withhold such
amounts  in  accordance   with  this   paragraph   (c).  In  the  event  that  a
Certificateholder  wishes to apply for a refund of any such withholding tax, the
Owner Trustee shall reasonably  cooperate with such  Certificateholder in making
such  claim so long as such  Certificateholder  agrees  to  reimburse  the Owner
Trustee for any out-of-pocket expenses incurred.

                  SECTION  5.3 Method of  Payment.  Subject  to Section  9.1(c),
distributions required to be made to Certificateholders on any Distribution Date
shall be made to each  Certificateholder  of record on the preceding Record Date
either by wire transfer,  in immediately available funds, to the account of such
Certificateholder  at a bank  or  other  entity  having  appropriate  facilities
therefore,  if (i) such Certificateholder shall have provided to the Certificate
Registrar appropriate written instructions at least five (5) Business Days prior
to such  Distribution  Date and  such  Certificateholder's  Certificates  in the
aggregate  evidence a  denomination  of not less than  $1,000,000,  or (ii) such
Certificateholder  is the  Depositor  or,  if  not,  by  check  mailed  to  such
Certificateholder  at the  address of such  Certificateholder  appearing  in the
Certificate Register.  Notwithstanding the foregoing,  the final distribution in
respect  of  any  Certificate   (whether  on  the  applicable   Final  Scheduled
Distribution  Date or  otherwise)  will be payable  only upon  presentation  and
surrender  of such  Certificate  at the  office  or agency  maintained  for that
purpose by the Owner Trustee pursuant to Section 3.9.
<PAGE>

                  SECTION 5.4 No Segregation of Monies; No Interest.  Subject to
Sections 5.1 and 5.2, monies received by the Owner Trustee hereunder need not be
segregated in any manner except to the extent  required by law, the Indenture or
the Sale and  Servicing  Agreement,  and may be  deposited  under  such  general
conditions  as may be  prescribed  by law,  and the Owner  Trustee  shall not be
liable for any interest thereon.

                  SECTION   5.5   Accounting   and   Reports   to   Noteholders,
Certificateholders,  Internal  Revenue  Service  and Others.  The Owner  Trustee
shall,  based on  information  provided  by or on behalf of the  Depositor,  (a)
maintain (or cause to be  maintained)  the books of the Trust on a calendar year
basis  on the  accrual  method  of  accounting,  (b)  deliver  (or  cause  to be
delivered)  to  each  Certificateholder,  as may be  required  by the  Code  and
applicable Treasury Regulations,  such information as may be required (including
Schedule K-1) to enable each  Certificateholder to prepare its federal and State
income tax returns, (c) file (or cause to be filed) such tax returns relating to
the Trust (including a partnership  information return, IRS Form 1065), and make
such  elections  as may from time to time be required or  appropriate  under any
applicable  State or federal  statute or rule or regulation  thereunder so as to
maintain the Trust's  characterization  as a partnership  for federal income tax
purposes,  (d) cause such tax returns to be signed in the manner required by law
and (e) collect (or cause to be collected) any  withholding  tax as described in
and in accordance with Section 5.2(c) with respect to income or distributions to
Certificateholders. The Owner Trustee shall elect under Section 1278 of the Code
to include in income  currently any market discount that accrues with respect to
the  Receivables.  The Owner Trustee shall not make the election  provided under
Section 754 of the Code.

                  SECTION 5.6 Signature on Returns; Tax Matters Partner. (a) The
Depositor,  as general partner for income tax purposes,  shall prepare (or cause
to be prepared) and sign, on behalf of the Trust, the tax returns of the Trust.

                  (b)  The  Depositor  shall  be  designated  the  "tax  matters
partner"  of the  Trust  pursuant  to  Section  6231(a)(7)(A)  of the  Code  and
applicable Treasury Regulations.

<PAGE>

                                   ARTICLE VI

                      AUTHORITY AND DUTIES OF OWNER TRUSTEE

                  SECTION 6.1 General Authority. The Owner Trustee is authorized
and  directed to execute and deliver on behalf of the Trust the Basic  Documents
to which  the  Trust is to be a party  and each  certificate  or other  document
attached as an exhibit to or  contemplated  by the Basic  Documents to which the
Trust is to be a party and any  amendment or other  agreement,  in each case, in
such form as the Depositor shall approve, as evidenced conclusively by the Owner
Trustee's execution thereof and the Depositor's execution of this Agreement, and
to direct the Indenture  Trustee to authenticate and deliver (i) Class A-1 Notes
in the aggregate  principal amount of $200,000,000,  (ii) Class A-2 Notes in the
aggregate  principal  amount  of  $331,000,000,  (iii)  Class  A-3  Notes in the
aggregate  principal  amount  of  $995,000,000,  (iv)  Class  A-4  Notes  in the
aggregate principal amount of $995,000,000, (v) Class A-5 Notes in the aggregate
principal  amount  of  $181,308,000  and  (vi)  Class B Notes  in the  aggregate
principal  amount of  $100,086,000.  In  addition  to the  foregoing,  the Owner
Trustee is authorized to take all actions  required of the Trust pursuant to the
Basic  Documents.  The Owner Trustee is further  authorized from time to time to
take such action on behalf of the Trust as is permitted  by the Basic  Documents
and which the  Servicer or the  Administrator  directs with respect to the Basic
Documents,  except to the extent  that this  Agreement  expressly  requires  the
consent of Certificateholders for such action.

                  SECTION 6.2 General Duties.  Subject to Section 4.1 hereof, it
shall be the duty of the Owner Trustee to discharge (or cause to be  discharged)
all of its  responsibilities  pursuant  to the terms of this  Agreement  and the
other Basic  Documents to which the Trust is a party and to administer the Trust
in the interest of the Certificateholders,  subject to the lien of the Indenture
and in  accordance  with the  provisions  of this  Agreement and the other Basic
Documents.  Notwithstanding anything else to the contrary in this Agreement, the
Owner Trustee shall be deemed to have discharged its duties and responsibilities
hereunder  and under the Basic  Documents  to the  extent the  Administrator  is
required in the Administration Agreement to perform any act or to discharge such
duty of the Owner  Trustee  or the  Trust  hereunder  or under  any other  Basic
Document,  and the Owner  Trustee  shall not be held  liable for the  default or
failure  of  the   Administrator   to  carry  out  its  obligations   under  the
Administration  Agreement.  Except as expressly provided in the Basic Documents,
the Owner Trustee shall have no obligation to administer, service or collect the
Receivables or to maintain,  monitor or otherwise  supervise the administration,
servicing or collection of the Receivables.
<PAGE>

                  SECTION  6.3 Action upon  Instruction.  (a) Subject to Article
IV,   and  in   accordance   with  the  terms  of  the  Basic   Documents,   the
Certificateholders may, by written instruction,  direct the Owner Trustee in the
management of the Trust.

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

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

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

                  SECTION 6.4 No Duties Except as Specified in this Agreement or
in  Instructions.  The Owner  Trustee  shall not have any duty or  obligation to
manage, make any payment with respect to, register, record, sell, dispose of, or
otherwise deal with the Owner Trust Estate, or to otherwise take or refrain from
taking any action under, or in connection with, any document contemplated hereby
to which the Owner Trustee or the Trust is a party, except as expressly provided
by the  terms  of this  Agreement  or in any  document  or  written  instruction
received by the Owner Trustee  pursuant to Section 6.3; and no implied duties or
obligations  shall be read  into this  Agreement  or any  other  Basic  Document
against the Owner Trustee.  The Owner Trustee shall have no  responsibility  for
filing any financing or continuation  statement in any public office at any time
or to otherwise  perfect or maintain the perfection of any security  interest or
lien granted to it hereunder or to prepare or file any Commission filing for the
Trust or to record this Agreement or any other Basic Document. The Owner Trustee
nevertheless agrees that it will, at its own cost and expense, promptly take all
action as may be  necessary  to  discharge  any lien (other than the lien of the
Indenture)  on any part of the Owner Trust  Estate that results from actions by,
or claims  against,  the Owner  Trustee that are not related to the ownership or
the administration of the Owner Trust Estate.
<PAGE>

                  SECTION 6.5 No Action  Except  Under  Specified  Documents  or
Instructions. The Owner Trustee shall not manage, control, use, sell, dispose of
or  otherwise  deal  with any  part of the  Owner  Trust  Estate  except  (i) in
accordance with the powers granted to and the authority conferred upon the Owner
Trustee  pursuant to this  Agreement,  (ii) in  accordance  with the other Basic
Documents  to  which  the  Trust or the  Owner  Trust  is a party  and  (iii) in
accordance  with any  document or  instruction  delivered  to the Owner  Trustee
pursuant to Section 6.3. Neither the Depositor nor the Certificateholders  shall
direct the Trustee to take any action that would violate the  provisions of this
Section 6.5.

                  SECTION 6.6 Restrictions. The Owner Trustee shall not take any
action  (a) that is  inconsistent  with the  purposes  of the Trust set forth in
Section 2.3 or (b) that, to the actual knowledge of the Owner Trustee, would (i)
affect  the  treatment  of the  Notes as  indebtedness  for  federal  income  or
Applicable Tax State income or franchise tax purposes, (ii) be deemed to cause a
taxable  exchange of the Notes for federal income or Applicable Tax State income
or franchise tax purposes or (iii) cause the Trust or any portion  thereof to be
taxable  as  an  association  (or  publicly  traded  partnership)  taxable  as a
corporation  for federal  income or Applicable Tax State income or franchise tax
purposes.  The  Certificateholders  shall not direct  the Owner  Trustee to take
action that would violate the provisions of this Section 6.6.

                                   ARTICLE VII

              REGARDING THE OWNER TRUSTEE AND THE DELAWARE TRUSTEE

                  SECTION 7.1 Acceptance of Trusts and Duties. Each of the Owner
Trustee  and the  Delaware  Trustee  accept the trusts  hereby  created and each
agrees to perform its duties hereunder with respect to such trusts but only upon
the terms of this Agreement.  Each Co-Trustee also agrees to disburse all monies
actually  received by it  constituting  part of the Owner Trust  Estate upon the
terms of this Agreement and the other Basic  Documents to which each  Co-Trustee
is a party. Each Co-Trustee shall not be answerable or accountable  hereunder or
under any other Basic Document under any  circumstances,  except (i) for its own
willful  misconduct,  bad  faith  or  negligence  or  (ii)  in the  case  of the
inaccuracy of any  representation or warranty contained in Section 7.3 expressly
made by either  Co-Trustee.  In  particular,  but not by way of limitation  (and
subject to the exceptions set forth in the preceding sentence):

                  (a) the Co-Trustees shall not be liable for any error of
judgment made by a responsible officer of either of the Co-Trustees;

<PAGE>
                  (b) the  Co-Trustees  shall not be liable with  respect to any
action taken or omitted to be taken by them in accordance with the  instructions
of  any   Certificateholder,   the  Indenture   Trustee,   the  Depositor,   the
Administrator or the Servicer;

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

                  (d) under no circumstances shall the Co-Trustees be liable for
indebtedness evidenced by or arising under any of the Basic Documents, including
the  principal  of and  interest  on the Notes or amounts  distributable  on the
Certificates;

                  (e) the Co-Trustees shall not be responsible for or in respect
of the validity or sufficiency of this Agreement or for the due execution hereof
by the Depositor or for the form, character, genuineness,  sufficiency, value or
validity of any of the Owner Trust  Estate or for or in respect of the  validity
or  sufficiency  of the other Basic  Documents,  other than the  certificate  of
authentication on the Certificates, and the Co-Trustees shall in no event assume
or  incur  any  liability,  duty,  or  obligation  to any  Noteholder  or to any
Certificateholder,  other than as expressly provided for herein and in the other
Basic Documents;

                  (f) the  Co-Trustees  shall not be liable  for the  default or
misconduct of the Servicer,  the  Administrator,  the Depositor or the Indenture
Trustee under any of the Basic Documents or otherwise and the Co-Trustees  shall
have no  obligation or liability to perform the  obligations  of the Trust under
this Agreement or the other Basic Documents that are required to be performed by
the Administrator  under the  Administration  Agreement,  the Servicer under the
Sale and Servicing Agreement or the Indenture Trustee under the Indenture; and
<PAGE>
                  (g) the  Co-Trustees  shall be under no obligation to exercise
any of the rights or powers vested in them by this  Agreement,  or to institute,
conduct or defend  any  litigation  under  this  Agreement  or  otherwise  or in
relation to this Agreement or any other Basic Document, at the request, order or
direction of any of the Certificateholders,  unless such Certificateholders have
offered to the  Co-Trustees  security or indemnity  satisfactory to them against
the costs,  expenses  and  liabilities  that may be incurred by the  Co-Trustees
therein or thereby.  The right of the  Co-Trustees to perform any  discretionary
act  enumerated in this  Agreement or in any other Basic  Document  shall not be
construed as a duty, and the Co-Trustees  shall not be answerable for other than
the  willful  misconduct,  bad  faith or  negligence  of  either  of them in the
performance of any such act.

                  SECTION 7.2  Furnishing of Documents.  The Owner Trustee shall
furnish to the  Certificateholders,  promptly upon receipt of a written  request
therefore,  duplicates  or copies of all reports,  notices,  requests,  demands,
certificates,  financial  statements and any other instruments  furnished to the
Owner Trustee under the Basic Documents.

                  SECTION  7.3  Representations  and  Warranties.  (a) The Owner
Trustee hereby represents and warrants to the Depositor,  for the benefit of the
Certificateholders, that:

     (i)      It is a banking corporation duly organized and validly  existing
in good standing  under the laws of the State of New York. It has all  requisite
corporate  power and  authority  to execute,  deliver and perform its
obligations under this Agreement.
<PAGE>
     (ii)      It has taken all corporate action necessary to  authorize  the
execution  and  delivery by it of this  Agreement,  and this Agreement  will be
executed  and  delivered  by one of its  officers who is duly authorized to
execute and deliver this Agreement on its behalf.

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

         (b)  The  Delaware  Trustee  hereby  represents  and  warrants  to  the
Depositor, for the benefit of the Certificateholders, that:

     (i)      It is a banking corporation duly organized and validly  existing
in good standing  under the laws of the State of Delaware.  It has all requisite
corporate power and authority to execute,  deliver and perform its obligations
under this Agreement.

     (ii)     It has taken all corporate action necessary to  authorize  the
execution  and  delivery by it of this  Agreement,  and this Agreement  will be
executed  and  delivered  by one of its  officers who is duly authorized to
execute and deliver this Agreement on its behalf.
<PAGE>
     (iii)    Neither the execution nor the delivery by it of this Agreement,
nor the consummation by it of the transactions  contemplated hereby nor
compliance  by it with any of the terms or  provisions  hereof  will
contravene  any federal or Delaware State law,  governmental  rule or regulation
governing the banking or trust powers of the Delaware Trustee or any judgment or
order  binding on it, or constitute  any default under its charter  documents or
by-laws or any indenture,  mortgage,  contract, agreement or instrument to which
it is a party or by which any of its properties may be bound.

                  SECTION 7.4 Reliance;  Advice of Counsel.  (a) The Co-Trustees
may rely upon,  shall be protected in relying upon, and shall incur no liability
to anyone in acting upon any signature, instrument, notice, resolution, request,
consent, order,  certificate,  report, opinion, bond, or other document or paper
believed by it to be genuine and believed by it to be signed by the proper party
or parties.  The  Co-Trustees may accept a certified copy of a resolution of the
board of directors or other  governing body of any corporate party as conclusive
evidence  that such  resolution  has been duly adopted by such body and that the
same is in full  force and  effect.  As to any fact or matter  the method of the
determination of which is not specifically  prescribed  herein,  the Co-Trustees
may for all purposes  hereof rely on a  certificate,  signed by the president or
any vice  president  or by the  treasurer  or other  authorized  officers of the
relevant party, as to such fact or matter and such certificate  shall constitute
full  protection to the  Co-Trustees for any action taken or omitted to be taken
by it in good faith in reliance thereon.
<PAGE>
                  (b) In the exercise or  administration of the trusts hereunder
and in the performance of its duties and obligations under this Agreement or the
other  Basic  Documents,  the  Co-Trustees  (i) may act  directly or through its
agents or attorneys  pursuant to agreements  entered into with any of them,  and
the Co-Trustees shall not be liable for the conduct or misconduct of such agents
or  attorneys  if such  agents or  attorneys  shall  have been  selected  by the
Co-Trustees with reasonable care, and (ii) may consult with counsel, accountants
and other skilled  Persons to be selected with  reasonable  care and employed by
it. The Co-Trustees  shall not be liable for anything done,  suffered or omitted
in good faith by them in  accordance  with the written  opinion or advice of any
such  counsel,  accountants  or other  such  Persons  and not  contrary  to this
Agreement or any other Basic Document.

                  SECTION  7.5 Not  Acting  in  Individual  Capacity.  Except as
provided in this Article VII, in accepting the trusts hereby  created,  The Bank
of New York acts  solely  as Owner  Trustee  hereunder  and The Bank of New York
(Delaware) acts solely as Delaware Trustee hereunder and not in their individual
capacities,  and all Persons having any claim against the  Co-Trustees by reason
of the  transactions  contemplated by this Agreement or any other Basic Document
shall look only to the Owner Trust Estate for payment or satisfaction thereof.
<PAGE>
                  SECTION  7.6 Owner  Trustee  Not  Liable for  Certificates  or
Receivables.  The recitals contained herein and in the Certificates  (other than
the signature  and  countersignature  of the Owner Trustee on the  Certificates)
shall be taken as the statements of the Depositor, and the Owner Trustee assumes
no  responsibility  for  the  correctness   thereof.  The  Co-Trustees  make  no
representations  as to the validity or  sufficiency  of this  Agreement,  of any
other  Basic  Document or of the  Certificates  (other  than the  signature  and
countersignature  of the Owner Trustee on the  Certificates) or the Notes, or of
any Receivable or related  documents.  The Owner Trustee,  the Delaware Trustee,
The Bank of New York and The Bank of New York  (Delaware)  shall at no time have
any  responsibility  or liability for or with respect to the legality,  validity
and  enforceability  of any  Receivable,  or the  perfection and priority of any
security  interest  created by any  Receivable  in any  Financed  Vehicle or the
maintenance of any such  perfection and priority,  or for or with respect to the
sufficiency of the Owner Trust Estate or its ability to generate the payments to
be distributed  to  Certificateholders  under this Agreement or the  Noteholders
under the Indenture, including, without limitation: the existence, condition and
ownership of any Financed  Vehicle;  the  existence  and  enforceability  of any
insurance thereon;  the existence and contents of any Receivable on any computer
or other record thereof; the validity of the assignment of any Receivable to the
Trust or any intervening  assignment;  the  completeness of any Receivable;  the
performance or enforcement of any Receivable; the compliance by the Depositor or
the Servicer with any warranty or  representation  made under any Basic Document
or  in  any  related  document,   or  the  accuracy  of  any  such  warranty  or
representation or any action of the Indenture Trustee,  the Administrator or the
Servicer  or any  subservicer  taken in the  name of the  Owner  Trustee  or the
Delaware Trustee.

                  SECTION 7.7 Co-Trustees May Own  Certificates  and Notes.  The
Bank of New York and The Bank of New York (Delaware), in their individual or any
other  capacities,  may become the owner or pledgee of Certificates or Notes and
may deal with the Depositor,  the Servicer,  the Administrator and the Indenture
Trustee  in  banking  transactions  with the same  rights as they  would have if
either of them were not the Owner Trustee or the Delaware Trustee.

<PAGE>

                                  ARTICLE VIII

                   COMPENSATION AND INDEMNITY OF OWNER TRUSTEE

                  SECTION 8.1 Owner Trustee's Fees and Expenses. The Co-Trustees
shall receive as  compensation  for their  services  hereunder such fees as have
been separately agreed upon before the date hereof between the Depositor and the
Co-Trustees,  and the  Co-Trustees  shall be entitled to and  reimbursed  by the
Depositor  for  their  other  reasonable  expenses   hereunder,   including  the
reasonable   compensation,   expenses   and   disbursements   of  such   agents,
representatives, experts and counsel as the Co-Trustees may employ in connection
with the exercise and performance of their rights and its duties hereunder. Such
amounts  shall be treated for tax  purposes as having  been  contributed  to the
Trust by the Depositor and the tax deduction for such amounts shall be allocated
to the Depositor.

                  SECTION 8.2 Indemnification.  The Depositor shall be liable as
prime obligor for, and shall indemnify the Co-Trustees, The Bank of New York and
The Bank of New York (Delaware) and their respective successors, assigns, agents
and servants (collectively, the "Indemnified Parties") from and against, any and
all liabilities, obligations, losses, damages, taxes, claims, actions and suits,
and  any  and  all  reasonable  costs,  expenses  and  disbursements  (including
reasonable  legal  fees  and  expenses)  of  any  kind  and  nature   whatsoever
(collectively,  "Expenses") which may at any time be imposed on, incurred by, or
asserted against the Co-Trustees,  The Bank of New York and The Bank of New York
(Delaware)  or any  Indemnified  Party in any way  relating to or arising out of
this  Agreement,  the  other  Basic  Documents,  the  Owner  Trust  Estate,  the
administration  of the Owner Trust Estate or the action or inaction of the Owner
Trustee  hereunder;  provided  that the  Depositor  shall not be  liable  for or
required to indemnify an Indemnified  Party from and against Expenses arising or
resulting from (i) the Indemnified Party's own willful misconduct,  bad faith or
negligence,  or (ii) the inaccuracy of any  representation or warranty contained
in  Section  7.3  expressly  made  by the  Indemnified  Party.  The  indemnities
contained in this Section 8.2 shall survive the  resignation  or  termination of
the Co-Trustees or the termination of this Agreement. In the event of any claim,
action or proceeding for which indemnity will be sought pursuant to this Section
8.2, the  Co-Trustees'  choice of legal counsel shall be subject to the approval
of the Depositor, which approval shall not be unreasonably withheld.

                  SECTION 8.3 Payments to  Co-Trustees.  Any amounts paid to the
Co-Trustees  pursuant to this  Article  VIII shall be deemed not to be a part of
the Owner Trust Estate immediately after such payment.

<PAGE>
                                   ARTICLE IX

                                   TERMINATION

                  SECTION 9.1 Termination of Trust Agreement. (a) This Agreement
(other than the provisions of Article VIII) shall terminate and be of no further
force or effect and the Trust  shall wind up and  dissolve,  upon the earlier of
(i) the maturity or other  liquidation of the last remaining  Receivable and the
disposition of any amounts  received upon such maturity or liquidation  and (ii)
the  payment  to the  Noteholders  and  the  Certificateholders  of all  amounts
required to be paid to them pursuant to the terms of the Indenture, the Sale and
Servicing   Agreement  and  Article  V.  Any  Insolvency   Event,   liquidation,
dissolution,  death or incapacity with respect to any  Certificateholder,  shall
neither (x) operate to terminate  this  Agreement or the Trust,  nor (y) entitle
such  Certificateholder's  legal representatives or heirs to claim an accounting
or to take any action or  proceeding  in any court for a partition or winding up
of all or any part of the Trust or Owner Trust Estate nor (z)  otherwise  affect
the rights,  obligations and liabilities of the parties hereto. Upon dissolution
of the Trust,  the Owner  Trustee  shall wind up the business and affairs of the
Trust as required by Section 3808 of the Business Trust Statute.

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

                  (c) Notice of any  termination  of the Trust,  specifying  the
Distribution  Date  upon  which the  Certificateholders  shall  surrender  their
Certificates  to  the  Certificate   Paying  Agent  for  payment  of  the  final
distribution and cancellation,  shall be given by the Owner Trustee by letter to
Certificateholders  mailed within five (5) Business Days of receipt of notice of
such  termination from the Servicer,  stating (i) the Distribution  Date upon or
with  respect  to which  final  payment of the  Certificates  shall be made upon
presentation  and surrender of the Certificates at the office of the Certificate
Paying  Agent  therein  designated,  (ii) the amount of any such  final  payment
(after reservation of sums sufficient to pay all claims and obligations, if any,
known to the Owner  Trustee  and payable by the Trust) and (iii) that the Record
Date otherwise applicable to such Distribution Date is not applicable,  payments
being made only upon  presentation  and  surrender  of the  Certificates  at the
office of the  Certificate  Paying Agent  therein  specified.  The Owner Trustee
shall give such  notice to the  Certificate  Registrar  (if other than the Owner
Trustee)  and the  Certificate  Paying Agent at the time such notice is given to
Certificateholders.  Upon  presentation and surrender of the  Certificates,  the
Certificate  Paying Agent shall cause to be  distributed  to  Certificateholders
amounts  distributable on such  Distribution  Date pursuant to Section 5.2. Upon
the  satisfaction  and discharge of the Indenture,  and receipt of a certificate
from the Indenture  Trustee stating that all Noteholders  have been paid in full
and that the Indenture Trustee is aware of no claims remaining against the Trust
in respect of the Indenture and the Notes, the Owner Trustee,  in the absence of
actual  knowledge of any other claim against the Trust,  shall be deemed to have
made  reasonable  provision  to  pay  all  claims  and  obligations   (including
conditional,  contingent  or  unmatured  obligations)  for  purposes  of Section
3808(e) of the Business Trust Statute.
<PAGE>
                  In the  event  that all of the  Certificateholders  shall  not
surrender their  Certificates for  cancellation  within six (6) months after the
date specified in the above mentioned  written  notice,  the Owner Trustee shall
give a second  written notice to the remaining  Certificateholders  to surrender
their  Certificates  for cancellation  and receive the final  distribution  with
respect thereto. If within one year after the second notice all the Certificates
shall not have been  surrendered  for  cancellation,  the Owner Trustee may take
appropriate steps, or may appoint an agent to take appropriate steps, to contact
the remaining Certificateholders  concerning surrender of their Certificates and
the cost  thereof  shall be paid out of the funds and other  assets  that  shall
remain subject to this Agreement.  Subject to applicable escheat laws, any funds
remaining in the Trust after exhaustion of such remedies shall be distributed by
the Owner Trustee to the Depositor.

                  (d) Upon  final  distribution  of any funds  remaining  in the
Trust, the Owner Trustee shall cause the Certificate of Trust to be cancelled by
filing a certificate of  cancellation  with the Secretary of State in accordance
with the provisions of Section 3810(c) of the Business Trust Statute.

                  SECTION 9.2 Prepayment of  Certificates.  (a) The Certificates
shall be prepaid in whole,  but not in part,  at the  direction  of the Servicer
pursuant to Section 9.1 of the Sale and Servicing Agreement, on any Distribution
Date on which the  Servicer  exercises  its option to purchase the assets of the
Trust pursuant to said Section 9.1, and the amount paid by the Servicer shall be
treated as collections of  Receivables  and applied to pay the unpaid  principal
amount of the Notes and the  Aggregate  Certificate  Balance  plus  accrued  and
unpaid interest  (including any overdue  interest)  thereon.  The Servicer shall
furnish the Rating Agencies and the Owner Trustee notice of such prepayment.  If
the Certificates are to be prepaid pursuant to this Section 9.2(a), the Servicer
shall furnish notice of such election to the Owner Trustee not later than twenty
(20) days prior to the Prepayment Date and the Trust shall deposit by 10:00 A.M.
(New York City  time) on the  Prepayment  Date in the  Certificate  Distribution
Account the Prepayment Price of the  Certificates to be redeemed,  whereupon all
such Certificates shall be due and payable on the Prepayment Date.
<PAGE>
                  (b) Notice of prepayment  under Section  9.2(a) shall be given
by the Owner  Trustee by  first-class  mail,  postage  prepaid,  or by facsimile
mailed or transmitted  immediately following receipt of notice from the Trust or
Servicer  pursuant to Section 9.2(a),  but not later than ten (10) days prior to
the applicable  Prepayment  Date, to each  Certificateholder  as of the close of
business on the Record Date  preceding the applicable  Prepayment  Date, at such
Certificateholder's  address or facsimile  number  appearing in the  Certificate
Register.

                  All notices of prepayment shall state:

                    (i)  the Prepayment Date;

                    (ii)  the Prepayment Price; and

                    (iii)  the  place   where  such   Certificates   are  to  be
         surrendered  for payment of the  Prepayment  Price  (which shall be the
         office or agency of the Owner  Trustee to be  maintained as provided in
         Section 3.9).

Notice of prepayment of the Certificates  shall be given by the Owner Trustee in
the name and at the expense of the Trust.  Failure to give notice of prepayment,
or any defect therein, to any  Certificateholder  shall not impair or affect the
validity of the prepayment of any other Certificate.

                  (c)  Following  notice of  prepayment  as  required by Section
9.2(b),  the  Certificates  shall on the Prepayment Date be paid by the Trust at
the  Prepayment  Price and (unless the Trust shall default in the payment of the
Prepayment  Price) no  interest  shall  accrue on the  Prepayment  Price for any
period after the date to which accrued  interest is  calculated  for purposes of
calculating the Prepayment  Price.  Following  payment in full of the Prepayment
Price, this Agreement and the Trust shall terminate.

<PAGE>
                                    ARTICLE X

            SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEESES

                  SECTION 10.1  Eligibility  Requirements  for Owner Trustee and
Delaware Trustee.  (a) The Owner Trustee shall at all times (i) be authorized to
exercise corporate trust powers;  (ii) have a combined capital and surplus of at
least  $50,000,000 and shall be subject to supervision or examination by federal
or state  authorities;  and (iii) shall have (or shall have a parent that has) a
long-term debt rating of investment  grade by each of the Rating  Agencies or be
otherwise  acceptable to the Rating Agencies.  If such corporation shall publish
reports of condition at least annually,  pursuant to law or to the  requirements
of the aforesaid  supervising  or examining  authority,  then for the purpose of
this Section 10.1, the combined capital and surplus of such corporation shall be
deemed to be its  combined  capital  and surplus as set forth in its most recent
report of condition so  published.  In case at any time the Owner  Trustee shall
cease to be eligible in accordance with the provisions of this Section 10.1, the
Owner  Trustee  shall  resign  immediately  in the  manner  and with the  effect
specified in Section 10.2.

                  (b) The Delaware  Trustee  shall at all times be a corporation
satisfying the provisions of Section 3807(a) of the Business Trust Statute.

                  SECTION 10.2  Resignation  or Removal of Owner  Trustee or the
Delaware Trustee.  (a) The Owner Trustee or the Delaware Trustee may at any time
resign and be discharged from the trusts hereby created by giving written notice
thereof to the  Administrator.  Upon receiving such notice of  resignation,  the
Administrator  shall  promptly  appoint a  successor  Owner  Trustee or Delaware
Trustee, as applicable,  by written instrument,  in duplicate, one copy of which
instrument shall be delivered to the resigning Owner Trustee or Delaware Trustee
and one copy to the applicable  successor Owner Trustee or Delaware Trustee.  If
no successor Owner Trustee or Delaware  Trustee shall have been so appointed and
have  accepted  appointment  within  thirty  (30) days  after the giving of such
notice of  resignation,  the  resigning  Owner  Trustee or Delaware  Trustee may
petition any court of competent  jurisdiction for the appointment of a successor
Owner Trustee or Delaware Trustee; provided, however, that such right to appoint
or to  petition  for the  appointment  of any such  successor  shall in no event
relieve the  resigning  Owner Trustee or Delaware  Trustee from any  obligations
otherwise  imposed on it under the Basic  Documents  until such successor has in
fact assumed such appointment.
<PAGE>

                  (b) If at any time the Owner Trustee or Delaware Trustee shall
cease to be eligible in  accordance  with the  provisions  of Section  10.1 or a
Co-Trustee resigns pursuant to Section 10.2 of this Agreement and the ineligible
or  non-resigning  Co-Trustee or either  Co-Trustees  shall fail to resign after
written  request  therefore  by the  Administrator,  or if at any time the Owner
Trustee or Delaware Trustee shall be legally unable to act, or if at any time an
Insolvency  Event with respect to the Owner  Trustee or Delaware  Trustee  shall
have  occurred  and  be  continuing,  then  the  Administrator  may  remove  the
Co-Trustee  that is  insolvent  or  legally  unable  to act or may  remove  both
Co-Trustees.  If the  Administrator  shall remove one or both of the Co-Trustees
under the authority of the immediately  preceding  sentence,  the  Administrator
shall promptly appoint a successor Co-Trustee or Co-Trustees,  as applicable, by
written  instrument,  in  duplicate,  one  copy of  which  instrument  shall  be
delivered to the outgoing Co-Trustee or Co-Trustees,  as applicable,  so removed
and one copy to the successor  Co-Trustee or  Co-Trustees,  as  applicable,  and
shall  pay  all  fees  owed  to  the  outgoing  Co-Trustee  or  Co-Trustees,  as
applicable.

                  (c) Any resignation or removal of a Co-Trustee and appointment
of a successor  Co-Trustee or  Co-Trustees  pursuant to any of the provisions of
this Section 10.2 shall not become  effective until acceptance of appointment by
the successor Co-Trustee or Co-Trustees pursuant to Section 10.3, payment of all
fees and expenses owed to the outgoing  Co-Trustee or Co-Trustees and the filing
of a  certificate  of amendment to the  Certificate  of Trust if required by the
Business  Trust  Statute.   The  Administrator  shall  provide  notice  of  such
resignation   or   removal   of   the   Co-Trustee   or   Co-Trustees   to   the
Certificateholders,  the  Indenture  Trustee,  the  Noteholders,  any  remaining
Co-Trustee and each of the Rating Agencies.

                  SECTION 10.3 Successor Owner Trustee or Delaware Trustee.  (a)
Any successor Owner Trustee or Delaware  Trustee  appointed  pursuant to Section
10.2 shall  execute,  acknowledge  and deliver to the  Administrator  and to its
predecessor  Owner  Trustee or Delaware  Trustee an  instrument  accepting  such
appointment  under  this  Agreement.  Upon the  resignation  or  removal  of the
predecessor  Owner Trustee or Delaware  Trustee becoming  effective  pursuant to
Section 10.2,  such  successor  Owner Trustee or Delaware  Trustee,  without any
further act, deed or conveyance,  shall become fully vested with all the rights,
powers,  duties,  and obligations of its predecessor under this Agreement,  with
like effect as if  originally  named as Owner Trustee or Delaware  Trustee.  The
predecessor  Owner Trustee or Delaware  Trustee shall,  upon payment of its fees
and  expenses,  deliver to the successor  Owner Trustee or Delaware  Trustee all
documents and  statements  and monies held by it under this  Agreement,  and the
Administrator  and the  predecessor  Owner  Trustee or  Delaware  Trustee  shall
execute and deliver such  instruments and do such other things as may reasonably
be required for fully and  certainly  vesting and  confirming  in the  successor
Owner  Trustee  or  Delaware  Trustee  all  such  rights,  powers,  duties,  and
obligations.
<PAGE>
                  (b) No  successor  Owner  Trustee or  Delaware  Trustee  shall
accept  appointment as provided in this Section 10.3 unless, at the time of such
acceptance,  such successor Owner Trustee or Delaware  Trustee shall be eligible
pursuant to Section 10.1.

                  (c)  Upon  acceptance  of  appointment  by a  successor  Owner
Trustee or Delaware  Trustee  pursuant to this Section 10.3,  the  Administrator
shall mail notice of the successor of such Owner Trustee or Delaware  Trustee to
all  Certificateholders,  the Indenture Trustee, the Noteholders,  any remaining
Co-Trustee and the Rating Agencies. If the Administrator shall fail to mail such
notice  within ten (10) days after  acceptance of  appointment  by the successor
Owner  Trustee or De1aware  Trustee,  the  successor  Owner  Trustee or Delaware
Trustee   shall   cause  such  notice  to  be  mailed  at  the  expense  of  the
Administrator.

                  (d) Any successor  Delaware Trustee appointed  hereunder shall
file the  amendments  to the  Certificate  of Trust with the  Secretary of State
identifying the name and principal place of business of such successor  Delaware
Trustee in the State of Delaware.

                  SECTION  10.4  Merger or  Consolidation  of Owner  Trustee  or
Delaware  Trustee.  Any  corporation  into which the Owner  Trustee or  Delaware
Trustee may be merged or converted or with which it may be consolidated,  or any
corporation resulting from any merger,  conversion or consolidation to which the
Owner  Trustee  or  Delaware  Trustee  shall  be a  party,  or  any  corporation
succeeding to all or  substantially  all of the corporate  trust business of the
Owner Trustee or Delaware Trustee, shall, without the execution or filing of any
instrument or any further act on the part of any of the parties hereto, anything
herein to the contrary notwithstanding, be the successor of the Owner Trustee or
Delaware Trustee  hereunder;  provided that such  corporation  shall be eligible
pursuant to Section 10.1;  and provided  further,  that (i) the Owner Trustee or
Delaware Trustee shall mail notice of such merger or consolidation to the Rating
Agencies not less than fifteen (15) days prior to the effective date thereof and
(ii) the Delaware Trustee shall file an amendment to the Certificate of Trust as
required by Section 10.3.
<PAGE>
                  SECTION 10.5  Appointment  of Co-Trustee or Separate  Trustee.
(a) Notwithstanding any other provisions of this Agreement, at any time, for the
purpose of meeting any legal  requirements of any jurisdiction in which any part
of the Owner Trust  Estate or any  Financed  Vehicle may at the time be located,
the  Administrator and the Owner Trustee acting jointly shall have the power and
shall  execute  and  deliver  all  instruments  to appoint  one or more  Persons
approved  by the Owner  Trustee  to act as  co-trustee,  jointly  with the Owner
Trustee,  or separate  trustee or separate  trustees,  of all or any part of the
Trust,  and to vest in such Person,  in such  capacity,  such title to the Owner
Trust Estate, or any part thereof,  and, subject to the other provisions of this
Section  10.5,  such  powers,  duties,  obligations,  rights  and  trusts as the
Administrator and the Owner Trustee may consider necessary or desirable.  If the
Administrator shall not have joined in such appointment within fifteen (15) days
after the  receipt by it of a request so to do, the Owner  Trustee  alone  shall
have the power to make such appointment. No co-trustee or separate trustee under
this Agreement shall be required to meet the terms of eligibility as a successor
trustee  pursuant  to  Section  10.1 and no  notice  of the  appointment  of any
co-trustee or separate trustee shall be required pursuant to Section 10.3.

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

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

                   (iii) the  Administrator and the Owner Trustee acting jointly
         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 Owner
Trustee shall be deemed to have been given to each of the then separate trustees
and  co-trustees,  as effectively as if given to each of them.  Every instrument
appointing any separate  trustee or co-trustee shall refer to this Agreement and
the conditions of this Article X. Each separate trustee and co-trustee, upon its
acceptance of the trusts conferred, shall be vested with the estates or property
specified  in its  instrument  of  appointment,  either  jointly  with the Owner
Trustee or separately, as may be provided therein, subject to all the provisions
of this  Agreement,  specifically  including  every  provision of this Agreement
relating to the conduct of, affecting the liability of, or affording  protection
to,  the Owner  Trustee.  Each  such  instrument  shall be filed  with the Owner
Trustee and a copy thereof given to the Administrator.
<PAGE>
                  (d) Any separate trustee or co-trustee may at any time appoint
the  Owner  Trustee  as its  agent  or  attorney-in-fact  with  full  power  and
authority, to the extent not prohibited by law, to do any lawful act under or in
respect of this Agreement on its behalf and in its name. If any separate trustee
or co-trustee shall die, become incapable of acting,  resign or be removed,  all
of its  estates,  properties,  rights,  remedies and trusts shall vest in and be
exercised by the Owner  Trustee,  to the extent  permitted  by law,  without the
appointment of a new or successor trustee.

                  SECTION  10.6   Compliance   with  Business   Trust   Statute.
Notwithstanding  anything  herein to the contrary,  the Trust shall at all times
have at least one trustee which meets the requirements of Section 3807(a) of the
Business Trust Statute.

                                   ARTICLE XI

                                  MISCELLANEOUS

                  SECTION 11.1  Supplements and  Amendments.  (a) This Agreement
may be amended by the Depositor and the Owner Trustee, with prior written notice
to the Rating  Agencies,  without the consent of any of the  Noteholders  or the
Certificateholders,  to  cure  any  ambiguity,  to  correct  or  supplement  any
provisions  in this  Agreement  inconsistent  with any other  provision  of this
Agreement  or for the  purpose of adding any  provisions  to or  changing in any
manner  or  eliminating  any of the  provisions  in  this  Agreement;  provided,
however,  that such  action  shall not,  as  evidenced  by an opinion of Counsel
satisfactory to the Owner Trustee and the Indenture Trustee, adversely affect in
any material respect the interests of any Noteholder or  Certificateholder;  and
provided  further that an Opinion of Counsel shall be furnished to the Indenture
Trustee  and the Owner  Trustee to the effect that such  amendment  (A) will not
materially  adversely  affect the federal or any  Applicable Tax State income or
franchise taxation of any outstanding Note or Certificate,  or any Noteholder or
Certificateholder  and  (B)  will  not  cause  the  Trust  to  be  taxable  as a
corporation  for federal or any  Applicable  Tax State income or  franchise  tax
purposes.  In addition,  this  Agreement may be amended by the Depositor and the
Owner Trustee, with prior notice to the Rating Agencies,  without the consent of
any of the Noteholders or the Certificateholders, in connection with the Class C
Certificates under the Securities Act, in order to facilitate such registration,
including with respect to the modification of the restrictions applicable to the
transfer of the Class C Certificates and modification of the legend set forth on
the form of the Class C Certificates.
<PAGE>
                  (b) This  Agreement  may also be amended  from time to time by
the Depositor, the Owner Trustee and the Trust, with prior written notice to the
Rating Agencies,  with the consent of (i) the Indenture  Trustee,  to the extent
that its rights or  obligations  would be affected by such  amendment,  (ii) the
Noteholders of Notes evidencing not less than a majority of the principal amount
of the  Notes  Outstanding  and  (iii) the  Certificateholders  of  Certificates
evidencing not less than a majority of the Aggregate  Certificate  Balance,  for
the purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of this Agreement or of modifying in any manner the rights
of the Noteholders or the  Certificateholders;  provided,  however, that no such
amendment  shall  (i)  increase  or  reduce  in any  manner  the  amount  of, or
accelerate  or delay the timing of, or change the  allocation  or  priority  of,
collections of payments on Receivables or distributions  that are required to be
made for the  benefit  of the  Noteholders  or the  Certificateholders,  or (ii)
reduce the aforesaid percentage of the principal amount of the Notes Outstanding
and the Aggregate Certificate Balance required to consent to any such amendment,
without  the  consent of all the  Noteholders  and  Certificateholders  affected
thereby; and provided further,  that an Opinion of Counsel shall be furnished to
the Indenture  Trustee and the Owner  Trustee to the effect that such  amendment
(A) will not materially adversely affect the federal or any Applicable Tax State
income or franchise  taxation of any  outstanding  Note or  Certificate,  or any
Noteholder or  Certificateholder  and (B) will not cause the Trust to be taxable
as a corporation for federal or any Applicable Tax State income or franchise tax
purposes.

                  (c)  Promptly  after the  execution  of any such  amendment or
consent,  the Owner Trustee shall furnish written  notification of the substance
of such amendment or consent to each  Certificateholder,  the Indenture  Trustee
and each of the Rating Agencies.
<PAGE>
                  (d)  It  shall   not  be   necessary   for  the   consent   of
Certificateholders,  the Noteholders or the Indenture  Trustee  pursuant to this
Section  11.1 to  approve  the  particular  form of any  proposed  amendment  or
consent,  but it shall be sufficient if such consent shall approve the substance
thereof.  The manner of  obtaining  such  consents  (and any other  consents  of
Certificateholders  provided  for  in  this  Agreement  or in  any  other  Basic
Document)  and of  evidencing  the  authorization  of the  execution  thereof by
Certificateholders shall be subject to such reasonable requirements as the Owner
Trustee may prescribe.

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

                  (f) Prior to the execution of any amendment to this  Agreement
or the Certificate of Trust, the Owner Trustees shall be entitled to receive and
rely upon an Opinion of Counsel  stating that the execution of such amendment is
authorized or permitted by this Agreement.  The Owner Trustee may, but shall not
be obligated to, enter into any such amendment which affects the Owner Trustee's
own rights, duties or immunities under this Agreement or otherwise.

                  (g) In connection  with the execution of any amendment to this
Agreement or any amendment to any other agreement to which the Trust is a party,
the Owner  Trustee  shall be entitled to receive and  conclusively  rely upon an
opinion of Counsel to the effect that such  amendment is authorized or permitted
by the Basic Documents and that all conditions  precedent in the Basic Documents
for the execution and delivery thereof by the Trust or the Owner Trustee, as the
case may be, have been satisfied.
<PAGE>
                  SECTION   11.2  No  Legal  Title  to  Owner  Trust  Estate  in
Certificateholders.  The  Certificateholders  shall not have legal  title to any
part of the Owner  Trust  Estate.  The  Certificateholders  shall be entitled to
receive distributions with respect to their beneficial interests therein only in
accordance  with  Articles  V and  IX.  No  transfer,  by  operation  of  law or
otherwise,  of any right, title, or interest of the Certificateholders to and in
their  beneficial  interest in the Owner Trust Estate shall operate to terminate
this  Agreement  or  the  trusts  hereunder  or  entitle  any  transferee  to an
accounting  or to the  transfer  to it of legal  title to any part of the  Owner
Trust Estate.

                  SECTION  11.3  Limitation  on Rights  of  Others.  Except  for
Sections  2.7 and 11.1,  the  provisions  of this  Agreement  are solely for the
benefit  of  the  Owner  Trustee,  the  Delaware  Trustee,  the  Depositor,  the
Administrator, the Certificateholders, the Servicer and, to the extent expressly
provided herein, the Indenture Trustee and the Noteholders,  and nothing in this
Agreement  (other  than  Section  2.7),  whether  express or  implied,  shall be
construed to give to any other Person any legal or  equitable  right,  remedy or
claim in the Owner Trust Estate or under or in respect of this  Agreement or any
covenants, conditions or provisions contained herein.

                  SECTION 11.4 Notices. (a) Unless otherwise expressly specified
or permitted by the terms  hereof,  all notices shall be in writing and shall be
deemed given upon receipt by the intended  recipient or three (3) Business  Days
after mailing if mailed by certified  mail,  postage prepaid (except that notice
to the Owner  Trustee and the Delaware  Trustee  shall be deemed given only upon
actual receipt by the Owner Trustee and the Delaware Trustee,  respectively), if
to the Owner  Trustee  or the  Delaware  Trustee,  addressed  to the  respective
Corporate  Trust  Office;  if to the  Depositor,  addressed  to Ford Credit Auto
Receivables  Two L.P. at the address of its  principal  executive  office  first
above  written;  or,  as to each  party,  at such  other  address  as  shall  be
designated by such party in a written notice to each other party.
<PAGE>
                  (b)  Any  notice  required  or  permitted  to  be  given  to a
Certificateholder  shall be given by first-class mail,  postage prepaid,  at the
address of such  Certificateholder  as shown in the  Certificate  Register.  Any
notice  so  mailed  within  the  time  prescribed  in this  Agreement  shall  be
conclusively   presumed   to  have  been  duly   given,   whether   or  not  the
Certificateholder receives such notice.

                  SECTION 11.5  Severability.  Any  provision of this  Agreement
that is  prohibited  or  unenforceable  in any  jurisdiction  shall,  as to such
jurisdiction,   be   ineffective   to  the   extent  of  such   prohibition   or
unenforceability  without  invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

                  SECTION 11.6  Separate  Counterparts.  This  Agreement  may be
executed by the parties hereto in separate  counterparts,  each of which when so
executed and delivered  shall be an original,  but all such  counterparts  shall
together constitute but one and the same instrument.

                  SECTION  11.7  Successors  and  Assigns.   All  covenants  and
agreements  contained herein shall be binding upon, and inure to the benefit of,
the Depositor,  the Owner Trustee and its successors and each  Certificateholder
and its successors and permitted assigns,  all as herein provided.  Any request,
notice,  direction,   consent,  waiver  or  other  instrument  or  action  by  a
Certificateholder    shall   bind   the   successors   and   assigns   of   such
Certificateholder.
<PAGE>
                  SECTION  11.8  No  Petition.  The  Owner  Trustee  (not in its
individual  capacity  but  solely  as Owner  Trustee),  by  entering  into  this
Agreement,  and each  Certificateholder,  by  accepting  a  Certificate,  hereby
covenants  and agrees that it will not,  until after the Notes have been paid in
full, institute against the Depositor, the General Partner or the Trust, or join
in any institution  against the Depositor,  the General Partner or the Trust 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
Certificates, the Notes, this Agreement or any of the other Basic Documents.

                  SECTION 11.9 No Recourse. Each Certificateholder, by accepting
a Certificate, acknowledges that such Certificateholder's Certificates represent
beneficial  interests  in the Trust only and do not  represent  interests  in or
obligations  of  the  Depositor,   the  General  Partner,   the  Servicer,   the
Administrator,  the  Owner  Trustee,  the  Indenture  Trustee  or any  Affiliate
thereof, and no recourse may be had against such parties or their assets, except
as  may  be  expressly  set  forth  or  contemplated  in  this  Agreement,   the
Certificates or the other Basic Documents.

                  SECTION 11.10 Headings.  The headings of the various  Articles
and Sections  herein are for  convenience of reference only and shall not define
or limit any of the terms or provisions hereof.

                  SECTION 11.11 Governing Law. This Agreement shall be construed
in accordance with the laws of the State of Delaware and the obligations, rights
and remedies of the parties  hereunder  shall be determined  in accordance  with
such laws.

                  SECTION  11.12  Sale  and  Servicing  Agreement   Obligations.
Notwithstanding any other provision of this Agreement,  the Owner Trustee agrees
that it will comply with its obligations  under Sections 3.1, 4.1 and 4.2 of the
Sale and Servicing Agreement.

<PAGE>

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

                           FORD CREDIT AUTO RECEIVABLES
                           TWO L.P., as Depositor

                           By: FORD CREDIT AUTO RECEIVABLES TWO, INC.,
                               as General Partner

                               By:
                                  Name:
                                  Title:

                           THE BANK OF NEW YORK (DELAWARE),
                           as Delaware Trustee

                               By:
                                  Name:
                                  Title:

                           THE BANK OF NEW YORK,
                           as Owner Trustee

                               By:
                                  Name:
                                  Title:

<PAGE>

                                                                       EXHIBIT A

                           FORM OF CLASS C CERTIFICATE

NUMBER                                                               $57,191,000
R-1

THIS  CERTIFICATE HAS NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), OR UNDER ANY STATE SECURITIES OR BLUE SKY LAW OF
ANY  STATE  OF  THE  UNITED  STATES.  THE  HOLDER  HEREOF,  BY  PURCHASING  THIS
CERTIFICATE,  AGREES FOR THE  BENEFIT OF THE TRUST AND THE  DEPOSITOR  THAT THIS
CERTIFICATE MAY BE REOFFERED,  RESOLD,  PLEDGED OR OTHERWISE TRANSFERRED ONLY IN
COMPLIANCE  WITH THE  SECURITIES  ACT AND OTHER  APPLICABLE  LAWS,  AND ONLY (1)
PURSUANT TO RULE 144A UNDER THE  SECURITIES  ACT ("RULE  144A") TO A PERSON THAT
THE HOLDER REASONABLY  BELIEVES IS A QUALIFIED  INSTITUTIONAL  BUYER, WITHIN THE
MEANING  OF RULE  144A (A  "QIB"),  PURCHASING  FOR ITS OWN  ACCOUNT  OR FOR THE
ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED,  IN EACH CASE, THAT THE REOFFER,
RESALE,  PLEDGE,  OR OTHER  TRANSFER  IS BEING  MADE IN  RELIANCE  ON RULE 144A,
SUBJECT  TO (A) THE  RECEIPT  BY THE TRUST AND THE  CERTIFICATE  REGISTRAR  OF A
CERTIFICATE  SUBSTANTIALLY  IN THE  FORM  ATTACHED  AS  EXHIBIT  E TO THE  TRUST
AGREEMENT  AND (B) THE RECEIPT BY THE TRUST AND THE  CERTIFICATE  REGISTRAR OF A
LETTER  SUBSTANTIALLY  IN THE FORM ATTACHED AS EXHIBIT C TO THE TRUST AGREEMENT,
(2) PURSUANT TO AN EXEMPTION  FROM  REGISTRATION  PROVIDED BY RULE 144 UNDER THE
SECURITIES ACT (IF AVAILABLE),  SUBJECT TO THE RECEIPT BY THE TRUST, THE INITIAL
PURCHASER AND THE CERTIFICATE REGISTRAR OF SUCH EVIDENCE ACCEPTABLE TO THE TRUST
AND THE INITIAL  PURCHASER THAT SUCH REOFFER,  RESALE,  PLEDGE OR TRANSFER IS IN
COMPLIANCE WITH THE TRUST AGREEMENT AND THE SECURITIES ACT AND OTHER  APPLICABLE
LAWS, (3) TO AN INSTITUTIONAL  "ACCREDITED  INVESTOR" WITHIN THE MEANING THEREOF
IN RULE  501(a)(1),  (2), (3) OR (7) OF  REGULATION D UNDER THE  SECURITIES  ACT
PURSUANT  TO ANY  OTHER  EXEMPTION  FROM THE  REGISTRATION  REQUIREMENTS  OF THE
SECURITIES  ACT,  SUBJECT TO (A) THE  RECEIPT  BY THE TRUST AND THE  CERTIFICATE
REGISTRAR  OF A LETTER  SUBSTANTIALLY  IN THE FORM  ATTACHED AS EXHIBIT D TO THE
TRUST AGREEMENT OR (B) THE RECEIPT BY THE TRUST,  THE INITIAL  PURCHASER AND THE
CERTIFICATE  REGISTRAR OF SUCH OTHER  EVIDENCE  ACCEPTABLE  TO THE TRUST AND THE
INITIAL PURCHASER THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE
WITH THE TRUST  AGREEMENT AND THE SECURITIES ACT AND OTHER  APPLICABLE  LAWS, OR
(4) TO THE DEPOSITOR,  IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES
LAWS OF THE UNITED STATES AND  SECURITIES AND BLUE SKY LAWS OF THE STATES OF THE
UNITED STATES.
<PAGE>
THE PRINCIPAL OF THIS  CERTIFICATE  IS  DISTRIBUTABLE  AS SET FORTH IN THE TRUST
AGREEMENT. ACCORDINGLY, THE OUTSTANDING PRINCIPAL BALANCE OF THIS CERTIFICATE AT
ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

                       FORD CREDIT AUTO OWNER TRUST 2000-E

                     CLASS C 7.41% ASSET BACKED CERTIFICATE

evidencing a beneficial interest in the property of the Trust, as defined below,
which  property  includes  a pool  of  motor  vehicle  retail  installment  sale
contracts, secured by security interests in the motor vehicles financed thereby,
conveyed to Ford Credit Auto  Receivables  Two L.P. by Ford Motor Credit Company
and conveyed by Ford Credit Auto Receivables Two L.P. to the Trust. The property
of the Trust has been pledged to the Indenture Trustee pursuant to the Indenture
to secure the payment of the Notes issued thereunder.

(This  Certificate does not represent an interest in or obligation of Ford Motor
Credit Company, Ford Credit Auto Receivables Two L.P. or any of their respective
Affiliates, except to the extent described below.)

                  THIS CERTIFIES THAT  ____________  is the registered  owner of
_______________ DOLLARS nonassessable,  fully-paid, beneficial interest in Class
C  Certificates  of Ford Credit Auto Owner Trust 2000-E (the "Trust")  formed by
Ford Credit Auto  Receivables  Two L.P.,  a Delaware  limited  partnership  (the
"Depositor").  The Class C Certificates  have an aggregate  Initial  Certificate
Balance  of  $57,191,000  and bear  interest  at a rate of 7.41% per annum  (the
"Class C Rate").

                  The Trust was  created  pursuant  to an Amended  and  Restated
Trust  Agreement,  dated as of September 1, 2000 (as from time to time  amended,
supplemented or otherwise modified and in effect, the "Trust Agreement"),  among
the Depositor,  The Bank of New York (Delaware),  not in its individual capacity
but solely as Delaware  trustee  (the  "Delaware  Trustee")  and The Bank of New
York,  not in its  individual  capacity but solely as owner  trustee (the "Owner
Trustee"),  a summary  of certain of the  pertinent  provisions  of which is set
forth below. To the extent not otherwise  defined herein,  the capitalized terms
used herein have the meanings assigned to them in the Trust Agreement.
<PAGE>
                  This  Certificate is one of the duly  authorized  Certificates
designated  as "Class C 7.41%  Asset  Backed  Certificates"  (herein  called the
"Class C  Certificates")  which,  together with the  Certificates  designated as
"Class D 9.00%  Asset  Backed  Certificates"  (the "Class D  Certificates"  and,
together with the Class C Certificates, the "Certificates") are issued under and
are subject to the terms,  provisions and conditions of the Trust Agreement,  to
which Trust Agreement the Certificateholder of this Certificate by virtue of the
acceptance  hereof assents and by which such  Certificateholder  is bound.  Also
issued under the Indenture,  dated as of September 1, 2000 (as from time to time
amended,  supplemented or otherwise  modified and in effect,  the  "Indenture"),
between the Trust and The Chase  Manhattan  Bank, as indenture  trustee (in such
capacity,  the  "Indenture  Trustee"),  are the Notes  designated  as "Class A-1
6.581% Asset Backed Notes",  "Class A-2 6.668% Asset Backed  Notes",  "Class A-3
6.74% Asset  Backed  Notes",  "Class A-4 6.74% Asset Backed  Notes",  "Class A-5
6.77% Asset Backed Notes" and "Class B 6.99% Asset Backed Notes"  (collectively,
the  "Notes").  The property of the Trust  includes (i) a pool of motor  vehicle
retail  installment sale contracts for new and used automobiles and light trucks
and certain rights and  obligations  thereunder (the  "Receivables");  (ii) with
respect to  Actuarial  Receivables,  all monies due  thereunder  on or after the
Cutoff Date and, with respect to Simple Interest Receivables,  all monies due or
received thereunder on or after the Cutoff Date; (iii) the security interests in
the Financed  Vehicles  granted by Obligors  pursuant to the Receivables and any
other  interest of the Trust in the Financed  Vehicles;  (iv) rights to proceeds
from claims on certain physical damage,  credit life, credit disability or other
insurance policies,  if any, covering Financed Vehicles or Obligors;  (v) Dealer
Recourse;  (vi) all of the Seller's rights to the Receivable  Files;  (vii) such
amounts  as from  time to time  may be held in one or more  accounts  maintained
pursuant to the Sale and Servicing Agreement,  dated as of September 1, 2000 (as
from time to time amended, supplemented or otherwise modified and in effect, the
"Sale and  Servicing  Agreement"),  by and among the Trust,  the  Depositor,  as
seller (in such  capacity,  the  "Seller"),  and Ford Motor Credit  Company,  as
servicer (the  "Servicer"),  including the Reserve Account;  (viii) the Seller's
rights under the Sale and Servicing  Agreement;  (ix) the Seller's  rights under
the  Purchase  Agreement;   (x)  payments  and  proceeds  with  respect  to  the
Receivables  held by the  Servicer;  (xi) all property  (including  the right to
receive  Liquidation  Proceeds)  securing a Receivable  (other than a Receivable
repurchased  by the  Servicer or  purchased  by the  Seller);  (xii)  rebates of
premiums  and other  amounts  relating  to  insurance  policies  and other items
financed  under the  Receivables in effect as of the Cutoff Date; and (xiii) any
and all  proceeds  of the  foregoing.  The rights of the Trust in the  foregoing
property of the Trust have been pledged to the  Indenture  Trustee to secure the
payment of the Notes.
<PAGE>
                  Under the Trust  Agreement,  there will be  distributed on the
fifteenth day of each month, or if such fifteenth day is not a Business Day, the
next Business Day (each, a "Distribution Date"),  commencing in October 2000, to
the Person in whose name this Certificate is registered at the close of business
on  the  last  day  of  the   preceding   month   (the   "Record   Date")   such
Certificateholder's percentage interest in the amount to be distributed to Class
C  Certificateholders  on  such  Distribution  Date;  provided,   however,  that
principal  will  be  distributed  to the  Class  C  Certificateholders  on  each
Distribution  Date on (to the extent of funds remaining after all classes of the
Notes  have been paid in full)  and after the date on which all  classes  of the
Notes  have been paid in full.  Notwithstanding  the  foregoing,  following  the
occurrence  and  during  the  continuation  of an event  of  default  under  the
Indenture which has resulted in an  acceleration of the Notes, no  distributions
of principal or interest  will be made on the  Certificates  until all principal
and interest on the Notes has been paid in full.

                  The holder of this  Certificate  acknowledges  and agrees that
its  rights  to  receive  distributions  in  respect  of  this  Certificate  are
subordinated  to the  rights of the  Noteholders  as  described  in the Sale and
Servicing Agreement, the Indenture and the Trust Agreement.

                  It is the  intent  of the  Depositor,  the  Servicer  and  the
Certificateholders  that,  for  purposes  of  federal  income,  state  and local
franchise and income tax and any other income  taxes,  the Trust will be treated
as a partnership  and the  Certificateholders  (including the Depositor) will be
treated  as  partners  in  that   partnership.   The  Depositor  and  the  other
Certificateholders by acceptance of a Certificate agree to treat, and to take no
action  inconsistent  with  the  treatment  of,  the  Certificates  for such tax
purposes as partnership interests in the Trust.
<PAGE>
                  Each  Certificateholder,  by its  acceptance of a Certificate,
covenants and agrees that such Certificateholder will not, until after the Notes
have been paid in full, institute against the Depositor,  the General Partner or
the Trust, or join in any institution against the Depositor, the General Partner
or the Trust of, any  bankruptcy,  reorganization,  arrangement,  insolvency  or
liquidation proceedings, or other proceedings under any United States federal or
state  bankruptcy or similar law in connection with any obligations  relating to
the Notes,  the  Certificates,  the Trust  Agreement  or any of the other  Basic
Documents.

                  Distributions  on this Certificate will be made as provided in
the Trust Agreement by the Owner Trustee or the Certificate Paying Agent by wire
transfer or check mailed to the  Certificateholder  of record in the Certificate
Register without the presentation or surrender of this Certificate or the making
of any notation hereon.  Except as otherwise provided in the Trust Agreement and
notwithstanding  the above,  the final  distribution on this Certificate will be
made after due notice by the Owner Trustee of the pendency of such  distribution
and only upon  presentation  and surrender of this  Certificate at the office or
agency maintained for the purpose by the Owner Trustee in New York, New York.

                  Reference  is hereby  made to the further  provisions  of this
Certificate set forth on the reverse hereof,  which further provisions shall for
all purposes have the same effect as if set forth at this place.

                  Unless the  certificate  of  authentication  hereon shall have
been  executed  by an  authorized  officer  of  the  Owner  Trustee,  by  manual
signature,  this Certificate shall not entitle the  Certificateholder  hereof to
any benefit under the Trust Agreement or the Sale and Servicing  Agreement or be
valid for any purpose.

                  This  Certificate  shall be construed in  accordance  with the
laws of the State of Delaware  and the  obligations,  rights and remedies of the
parties hereunder shall be determined in accordance with such laws.

<PAGE>

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

                                     FORD CREDIT AUTO OWNER TRUST 2000-E

                                     By:      THE BANK OF NEW YORK,
                                              not in its individual capacity but
                                              solely as Owner Trustee

                                     By:

                                               Authorized Officer

                  OWNER TRUSTEE'S CERTIFICATE OF AUTHENTICATION

         This  is  one  of  the  Class  C   Certificates   referred  to  in  the
within-mentioned Trust Agreement.

Dated: September 26, 2000

                                     By:    THE BANK OF NEW YORK,
                                            not in its individual capacity but
                                            solely as Owner Trustee

                                     By:

                                               Authorized Officer

<PAGE>

                            [REVERSE OF CERTIFICATE]

                  The  Certificates  do not  represent an  obligation  of, or an
interest  in,  the   Depositor,   the  General   Partner,   the  Servicer,   the
Administrator,  the  Owner  Trustee  or any  Affiliates  of any of  them  and no
recourse  may be had  against  such  parties or their  assets,  except as may be
expressly set forth or  contemplated  herein,  in the Trust  Agreement or in the
other Basic  Documents.  In addition,  this Certificate is not guaranteed by any
governmental  agency or  instrumentality  and is  limited in right of payment to
certain collections with respect to the Receivables (and certain other amounts),
all as  more  specifically  set  forth  herein  and in the  Sale  and  Servicing
Agreement.

                  The Trust Agreement  permits,  with certain exceptions therein
provided,  the  amendment  thereof  and  the  modification  of  the  rights  and
obligations of the Depositor and the rights of the Certificateholders  under the
Trust  Agreement  at any time by the  Depositor  and the Owner  Trustee with the
consent of the Noteholders and the Certificateholders evidencing not less than a
majority of the  principal  amount of the Notes  Outstanding  and the  Aggregate
Certificate Balance,  respectively. Any such consent by the Certificateholder of
this Certificate shall be conclusive and binding on such  Certificateholder  and
on all future  Certificateholders  of this  Certificate  and of any  Certificate
issued upon the  registration  of Transfer  hereof or in exchange  herefor or in
lieu  hereof  whether  or not  notation  of  such  consent  is  made  upon  this
Certificate.  The Trust Agreement also permits the amendment thereof, in certain
limited  circumstances,  without  the consent of any of the  Noteholders  or the
Certificateholders.

                  As  provided  in the Trust  Agreement  and  subject to certain
limitations  therein set forth, the Transfer of the Certificates are registrable
in the Certificate  Register upon surrender of this Certificate for registration
of Transfer at the offices or agencies maintained by The Bank of New York in its
capacity as Certificate Registrar, or by any successor Certificate Registrar, in
New York,  New York,  accompanied  by a written  instrument  of transfer in form
satisfactory to the Owner Trustee and the Certificate Registrar duly executed by
the holder hereof or such  holder's  attorney  duly  authorized in writing,  and
thereupon one or more new  Certificates of authorized  denominations  evidencing
the same  aggregate  interest  in the Trust  will be  issued  to the  designated
transferee.
<PAGE>

                  The  Certificates  are  issuable  as  registered  Certificates
without coupons in denominations  of at least $20,000 and in integral  multiples
of $1,000 in excess thereof.  Certificates are exchangeable for new Certificates
of like  Class  and  authorized  denominations  evidencing  the  same  aggregate
denomination,  as requested by the  Certificateholder  surrendering the same. No
service charge will be made for any such  registration  of Transfer or exchange,
but the Owner Trustee or the Certificate  Registrar may require payment of a sum
sufficient  to  cover  any tax or  governmental  charge  payable  in  connection
therewith.

                  The Owner Trustee, the Certificate  Registrar and any agent of
the Owner  Trustee or the  Certificate  Registrar  may treat the Person in whose
name this  Certificate  is registered as the owner hereof for all purposes,  and
none of the Owner Trustee, the Certificate  Registrar or any such agent shall be
affected by any notice to the contrary.

                  The Class C  Certificates  may be  acquired  only by an entity
that is either:  (a) not, and each  account (if any) for which it is  purchasing
the Class C  Certificates  is not (i) an  employee  benefit  plan (as defined in
Section 3(3) of the Employee  Retirement Income Security Act of 1974, as amended
("ERISA")) that is subject to Title I of ERISA, (ii) a plan described in Section
4975(e)(1) of the Internal Revenue Code of 1986, as amended (the "Code") that is
subject to Section 4975 of the Code,  (iii) a  governmental  plan, as defined in
Section 3(32) of ERISA, subject to any federal,  State or local law which is, to
a material extent,  similar to the provisions of Section 406 of ERISA or Section
4975 of the Code, (iv) an entity whose underlying  assets include plan assets by
reason of a plan's investment in the entity (within the meaning of Department of
Labor  Regulation 29 C.F.R.  ss.  2510.3-101 or otherwise  under ERISA) or (v) a
person investing "plan assets" of any such plan (including  without  limitation,
for  purposes of this clause (v), an  insurance  company  general  account,  but
excluding any entity  registered  under the  Investment  Company Act of 1940, as
amended);  or (b) an insurance company acting on behalf of a general account and
(i) on the date of purchase less than 25% of the assets of such general  account
(as reasonably  determined by it) constitute "plan assets" for purposes of Title
I of ERISA and Section  4975 of the Code,  (ii) the purchase and holding of such
Class C  Certificates  are eligible for exemptive  relief under Sections (I) and
(III) of Prohibited  Transaction  Class Exemption 95-60, and (iii) the purchaser
agrees  that if,  after  the  purchaser's  initial  acquisition  of the  Class C
Certificates,  at any time during any calendar quarter 25% or more of the assets
of such general account (as reasonably  determined by it no less frequently than
each calendar quarter) constitute "plan assets" for purposes of Title I of ERISA
or Section 4975 of the Code and no exemption  or exception  from the  prohibited
transaction  rules applies to the continued  holding of the Class C Certificates
under Section 401(c) of ERISA and the final  regulations  thereunder or under an
exemption or regulation  issued by the United  States  Department of Labor under
ERISA,  it will  dispose of all Class C  Certificates  then held in its  general
account by the end of the next following calendar quarter.
<PAGE>
                  In  addition,  the  Certificates  may not be acquired by or on
behalf of a Person  other than (A) a citizen or resident  of the United  States,
(B) a corporation  or  partnership  organized in or under the laws of the United
States or any political  subdivision  thereof, (C) an estate the income of which
is includible in gross income for United States tax purposes,  regardless of its
source, (D) a trust if a U.S. court is able to exercise primary supervision over
the  administration of such trust and one or more Persons meeting the conditions
of this paragraph has the authority to control all substantial  decisions of the
trust or (E) a Person not  described  in clauses  (A)  through  (D) above  whose
ownership  of the  Certificates  is  effectively  connected  with such  Person's
conduct of a trade or business  within the United States  (within the meaning of
the Code) and who provides the Owner Trustee and the Depositor  with an IRS Form
4224 (and such other certifications,  representations, or opinions of counsel as
may be requested by the Owner Trustee or the Depositor).

                  The  obligations  and  responsibilities  created  by the Trust
Agreement and the Trust created thereby shall terminate (i) upon the maturity or
other  liquidation of the last remaining  Receivable and the  disposition of any
amounts  received upon such maturity or  liquidation or (ii) upon the payment to
the Noteholders and the Certificateholders of all amounts required to be paid to
them pursuant to the Indenture,  the Trust  Agreement and the Sale and Servicing
Agreement,  and upon such termination any remaining assets of the Trust shall be
distributed to the Depositor.  The Servicer of the Receivables may at its option
purchase the assets of the Trust at a price  specified in the Sale and Servicing
Agreement,  and such purchase of the Receivables and other property of the Trust
will effect early retirement of the Notes and the  Certificates;  however,  such
right of  purchase  is  exercisable  only as of the  last day of any  Collection
Period as of which the Pool  Balance is less than or equal to 10% of the Initial
Pool Balance.

<PAGE>

                                   ASSIGNMENT

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

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE

(Please print or type name and address, including postal zip code, of assignee)

the within Certificate, and all rights thereunder, hereby irrevocably
constituting and appointing

Attorney to transfer said Certificate on the books of the Certificate
Registrar,  with full power of substitution in the premises.

Dated:

                                                      */

                              Signature Guaranteed:

                                                      */

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

<PAGE>

                                                                       EXHIBIT B

                           FORM OF CLASS D CERTIFICATE

NUMBER                                                               $57,191,000
R-1

THIS  CERTIFICATE  HAS NOT BEEN AND WILL NOT BE REGISTERED  UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER ANY STATE SECURITIES OR
BLUE SKY LAW OF ANY STATE OF THE UNITED STATES. THE HOLDER HEREOF, BY PURCHASING
THIS  CERTIFICATE,  AGREES FOR THE BENEFIT OF THE TRUST AND THE  DEPOSITOR  THAT
THIS CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY
IN COMPLIANCE  WITH THE SECURITIES ACT AND OTHER  APPLICABLE  LAWS, AND ONLY (1)
PURSUANT TO RULE 144A UNDER THE  SECURITIES  ACT ("RULE  144A") TO A PERSON THAT
THE HOLDER REASONABLY  BELIEVES IS A QUALIFIED  INSTITUTIONAL  BUYER, WITHIN THE
MEANING  OF RULE  144A (A  "QIB"),  PURCHASING  FOR ITS OWN  ACCOUNT  OR FOR THE
ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED,  IN EACH CASE, THAT THE REOFFER,
RESALE,  PLEDGE,  OR OTHER  TRANSFER  IS BEING  MADE IN  RELIANCE  ON RULE 144A,
SUBJECT  TO (A) THE  RECEIPT  BY THE TRUST AND THE  CERTIFICATE  REGISTRAR  OF A
CERTIFICATE  SUBSTANTIALLY  IN THE  FORM  ATTACHED  AS  EXHIBIT  E TO THE  TRUST
AGREEMENT  AND (B) THE RECEIPT BY THE TRUST AND THE  CERTIFICATE  REGISTRAR OF A
LETTER  SUBSTANTIALLY  IN THE FORM ATTACHED AS EXHIBIT C TO THE TRUST AGREEMENT,
(2) PURSUANT TO AN EXEMPTION  FROM  REGISTRATION  PROVIDED BY RULE 144 UNDER THE
SECURITIES ACT (IF AVAILABLE),  SUBJECT TO THE RECEIPT BY THE TRUST, THE INITIAL
PURCHASER AND THE CERTIFICATE REGISTRAR OF SUCH EVIDENCE ACCEPTABLE TO THE TRUST
AND THE INITIAL  PURCHASER THAT SUCH REOFFER,  RESALE,  PLEDGE OR TRANSFER IS IN
COMPLIANCE WITH THE TRUST AGREEMENT AND THE SECURITIES ACT AND OTHER  APPLICABLE
LAWS, (3) TO AN INSTITUTIONAL  "ACCREDITED  INVESTOR" WITHIN THE MEANING THEREOF
IN RULE  501(a)(1),  (2), (3) OR (7) OF  REGULATION D UNDER THE  SECURITIES  ACT
PURSUANT  TO ANY  OTHER  EXEMPTION  FROM THE  REGISTRATION  REQUIREMENTS  OF THE
SECURITIES  ACT,  SUBJECT TO (A) THE  RECEIPT  BY THE TRUST AND THE  CERTIFICATE
REGISTRAR  OF A LETTER  SUBSTANTIALLY  IN THE FORM  ATTACHED AS EXHIBIT D TO THE
TRUST AGREEMENT OR (B) THE RECEIPT BY THE TRUST,  THE INITIAL  PURCHASER AND THE
CERTIFICATE  REGISTRAR OF SUCH OTHER  EVIDENCE  ACCEPTABLE  TO THE TRUST AND THE
INITIAL PURCHASER THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE
WITH THE TRUST  AGREEMENT AND THE SECURITIES ACT AND OTHER  APPLICABLE  LAWS, OR
(4) TO THE DEPOSITOR,  IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES
LAWS OF THE UNITED STATES AND  SECURITIES AND BLUE SKY LAWS OF THE STATES OF THE
UNITED STATES.
<PAGE>
THE PRINCIPAL OF THIS  CERTIFICATE  IS  DISTRIBUTABLE  AS SET FORTH IN THE TRUST
AGREEMENT. ACCORDINGLY, THE OUTSTANDING PRINCIPAL BALANCE OF THIS CERTIFICATE AT
ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

                           FORD CREDIT AUTO OWNER TRUST 2000-E

                         CLASS D 9.00% ASSET BACKED CERTIFICATE

evidencing a beneficial interest in the property of the Trust, as defined below,
which  property  includes  a pool  of  motor  vehicle  retail  installment  sale
contracts, secured by security interests in the motor vehicles financed thereby,
conveyed to Ford Credit Auto  Receivables  Two L.P. by Ford Motor Credit Company
and conveyed by Ford Credit Auto Receivables Two L.P. to the Trust. The property
of the Trust has been pledged to the Indenture Trustee pursuant to the Indenture
to secure the payment of the Notes issued thereunder.

(This  Certificate does not represent an interest in or obligation of Ford Motor
Credit Company, Ford Credit Auto Receivables Two L.P. or any of their respective
Affiliates, except to the extent described below.)

                  THIS  CERTIFIES  THAT  __________is  the  registered  owner of
_____________ DOLLARS nonassessable,  fully-paid, beneficial interest in Class D
Certificates of Ford Credit Auto Owner Trust 2000-E (the "Trust") formed by Ford
Credit  Auto  Receivables  Two  L.P.,  a  Delaware   limited   partnership  (the
"Depositor").  The Class D Certificates  have an aggregate  Initial  Certificate
Balance  of  $57,191,000  and bear  interest  at a rate of 9.00% per annum  (the
"Class D Rate").

                  The Trust was  created  pursuant  to an Amended  and  Restated
Trust  Agreement,  dated as of September 1, 2000 (as from time to time  amended,
supplemented or otherwise modified and in effect, the "Trust Agreement"),  among
the Depositor,  The Bank of New York (Delaware),  not in its individual capacity
but solely as Delaware  trustee  (the  "Delaware  Trustee")  and The Bank of New
York,  not in its  individual  capacity but solely as owner  trustee (the "Owner
Trustee"),  a summary  of certain of the  pertinent  provisions  of which is set
forth below. To the extent not otherwise  defined herein,  the capitalized terms
used herein have the meanings assigned to them in the Trust Agreement.
<PAGE>
                  This  Certificate is one of the duly  authorized  Certificates
designated  as "Class D 9.00%  Asset  Backed  Certificates"  (herein  called the
"Class D  Certificates")  which,  together with the  Certificates  designated as
"Class C 7.41%  Asset  Backed  Certificates"  (the "Class C  Certificates"  and,
together with the Class D Certificates, the "Certificates") are issued under and
are subject to the terms,  provisions and conditions of the Trust Agreement,  to
which Trust Agreement the Certificateholder of this Certificate by virtue of the
acceptance  hereof assents and by which such  Certificateholder  is bound.  Also
issued under the Indenture,  dated as of September 1, 2000 (as from time to time
amended,  supplemented or otherwise  modified and in effect,  the  "Indenture"),
between the Trust and The Chase  Manhattan  Bank, as indenture  trustee (in such
capacity,  the  "Indenture  Trustee"),  are the Notes  designated  as "Class A-1
6.581% Asset Backed Notes",  "Class A-2 6.668% Asset Backed  Notes",  "Class A-3
6.74% Asset  Backed  Notes",  "Class A-4 6.74% Asset Backed  Notes",  "Class A-5
6.77% Asset Backed Notes" and "Class B 6.99% Asset Backed Notes"  (collectively,
the  "Notes").  The property of the Trust  includes (i) a pool of motor  vehicle
retail  installment sale contracts for new and used automobiles and light trucks
and certain rights and obligations  thereunder (the  "Receivables")  ; (ii) with
respect to  Actuarial  Receivables,  all monies due  thereunder  on or after the
Cutoff Date and, with respect to Simple Interest Receivables,  all monies due or
received thereunder on or after the Cutoff Date; (iii) the security interests in
the Financed  Vehicles  granted by Obligors  pursuant to the Receivables and any
other  interest of the Trust in the Financed  Vehicles;  (iv) rights to proceeds
from claims on certain physical damage,  credit life, credit disability or other
insurance policies,  if any, covering Financed Vehicles or Obligors;  (v) Dealer
Recourse;  (vi) all of the Seller's rights to the Receivable  Files;  (vii) such
amounts  as from  time to time  may be held in one or more  accounts  maintained
pursuant to the Sale and Servicing Agreement,  dated as of September 1, 2000 (as
from time to time amended, supplemented or otherwise modified and in effect, the
"Sale and  Servicing  Agreement"),  by and among the Trust,  the  Depositor,  as
seller (in such  capacity,  the  "Seller") , and Ford Motor Credit  Company,  as
servicer (the  "Servicer"),  including the Reserve Account;  (viii) the Seller's
rights under the Sale and Servicing  Agreement;  (ix) the Seller's  rights under
the  Purchase  Agreement;   (x)  payments  and  proceeds  with  respect  to  the
Receivables  held by the  Servicer;  (xi) all property  (including  the right to
receive  Liquidation  Proceeds)  securing a Receivable  (other than a Receivable
repurchased  by the  Servicer or  purchased  by the  Seller);  (xii)  rebates of
premiums  and other  amounts  relating  to  insurance  policies  and other items
financed  under the  Receivables in effect as of the Cutoff Date; and (xiii) any
and all  proceeds  of the  foregoing.  The rights of the Trust in the  foregoing
property of the Trust have been pledged to the  Indenture  Trustee to secure the
payment of the Notes.
<PAGE>
                  Under the Trust  Agreement,  there will be  distributed on the
fifteenth day of each month, or if such fifteenth day is not a Business Day, the
next Business Day (each, a "Distribution Date"),  commencing in October 2000, to
the Person in whose name this Certificate is registered at the close of business
on  the  last  day  of  the   preceding   month   (the   "Record   Date")   such
Certificateholder's percentage interest in the amount to be distributed to Class
D  Certificateholders  on  such  Distribution  Date;  provided,   however,  that
principal  will  be  distributed  to the  Class  D  Certificateholders  on  each
Distribution  Date on (to the extent of funds remaining after all classes of the
Notes and the Class C Certificates have been paid in full) and after the date on
which all  classes of the Notes and the Class C  Certificates  have been paid in
full.  Notwithstanding  the  foregoing,  following the occurrence and during the
continuation of an event of default under the Indenture which has resulted in an
acceleration  of the Notes,  no  distributions  of principal or interest will be
made on the Certificates  until all principal and interest on the Notes has been
paid in full.

                  The holder of this  Certificate  acknowledges  and agrees that
its  rights  to  receive  distributions  in  respect  of  this  Certificate  are
subordinated to the rights of the Noteholders and the Class C Certificateholders
as described in the Sale and  Servicing  Agreement,  the Indenture and the Trust
Agreement.
<PAGE>
                  It is the  intent  of the  Depositor,  the  Servicer  and  the
Certificateholders  that,  for  purposes  of  federal  income,  state  and local
franchise and income tax and any other income  taxes,  the Trust will be treated
as a partnership  and the  Certificateholders  (including the Depositor) will be
treated  as  partners  in  that   partnership.   The  Depositor  and  the  other
Certificateholders by acceptance of a Certificate agree to treat, and to take no
action  inconsistent  with  the  treatment  of,  the  Certificates  for such tax
purposes as partnership interests in the Trust.

                  Each  Certificateholder,  by its  acceptance of a Certificate,
covenants and agrees that such Certificateholder will not, until after the Notes
have been paid in full, institute against the Depositor,  the General Partner or
the Trust, or join in any institution against the Depositor, the General Partner
or the Trust of, any  bankruptcy,  reorganization,  arrangement,  insolvency  or
liquidation proceedings, or other proceedings under any United States federal or
state  bankruptcy or similar law in connection with any obligations  relating to
the Notes,  the  Certificates,  the Trust  Agreement  or any of the other  Basic
Documents.

                  Distributions  on this Certificate will be made as provided in
the Trust Agreement by the Owner Trustee or the Certificate Paying Agent by wire
transfer or check mailed to the  Certificateholder  of record in the Certificate
Register without the presentation or surrender of this Certificate or the making
of any notation hereon.  Except as otherwise provided in the Trust Agreement and
notwithstanding  the above,  the final  distribution on this Certificate will be
made after due notice by the Owner Trustee of the pendency of such  distribution
and only upon  presentation  and surrender of this  Certificate at the office or
agency maintained for the purpose by the Owner Trustee in New York, New York.
<PAGE>
                  Reference  is hereby  made to the further  provisions  of this
Certificate set forth on the reverse hereof,  which further provisions shall for
all purposes have the same effect as if set forth at this place.

                  Unless the  certificate  of  authentication  hereon shall have
been  executed  by an  authorized  officer  of  the  Owner  Trustee,  by  manual
signature,  this Certificate shall not entitle the  Certificateholder  hereof to
any benefit under the Trust Agreement or the Sale and Servicing  Agreement or be
valid for any purpose.

                  This  Certificate  shall be construed in  accordance  with the
laws of the State of Delaware  and the  obligations,  rights and remedies of the
parties hereunder shall be determined in accordance with such laws.

<PAGE>

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

                                    FORD CREDIT AUTO OWNER TRUST 2000-E

                                    By:     THE BANK OF NEW YORK,
                                            not in its individual capacity
                                            but solely as Owner Trustee

                                   By:

                                           Authorized Officer

                  OWNER TRUSTEE'S CERTIFICATE OF AUTHENTICATION

         This  is  one  of  the  Class  D   Certificates   referred  to  in  the
within-mentioned Trust Agreement.

Dated: September 26, 2000

                                    By:   THE BANK OF NEW YORK,
                                          not in its individual capacity
                                          but solely as Owner Trustee

                                   By:
                                         Authorized Officer

<PAGE>

                            [REVERSE OF CERTIFICATE]

                  The  Certificates  do not  represent an  obligation  of, or an
interest  in,  the   Depositor,   the  General   Partner,   the  Servicer,   the
Administrator,  the  Owner  Trustee  or any  Affiliates  of any of  them  and no
recourse  may be had  against  such  parties or their  assets,  except as may be
expressly set forth or  contemplated  herein,  in the Trust  Agreement or in the
other Basic  Documents.  In addition,  this Certificate is not guaranteed by any
governmental  agency or  instrumentality  and is  limited in right of payment to
certain collections with respect to the Receivables (and certain other amounts),
all as  more  specifically  set  forth  herein  and in the  Sale  and  Servicing
Agreement.  A  registration  statement,  which  includes  a form  of  the  Trust
Agreement as an exhibit thereto, has been filed with the Securities and Exchange
Commission with respect to the Class A-3 Notes,  the Class A-4 Notes,  the Class
A-5 Notes and the Class B Notes.

                  The Trust Agreement  permits,  with certain exceptions therein
provided,  the  amendment  thereof  and  the  modification  of  the  rights  and
obligations of the Depositor and the rights of the Certificateholders  under the
Trust  Agreement  at any time by the  Depositor  and the Owner  Trustee with the
consent of the Noteholders and the Certificateholders evidencing not less than a
majority of the  principal  amount of the Notes  Outstanding  and the  Aggregate
Certificate Balance,  respectively. Any such consent by the Certificateholder of
this Certificate shall be conclusive and binding on such  Certificateholder  and
on all future  Certificateholders  of this  Certificate  and of any  Certificate
issued upon the  registration  of Transfer  hereof or in exchange  herefor or in
lieu  hereof  whether  or not  notation  of  such  consent  is  made  upon  this
Certificate.  The Trust Agreement also permits the amendment thereof, in certain
limited  circumstances,  without  the consent of any of the  Noteholders  or the
Certificateholders.
<PAGE>
                  As  provided  in the Trust  Agreement  and  subject to certain
limitations  therein set forth, the Transfer of the Certificates are registrable
in the Certificate  Register upon surrender of this Certificate for registration
of Transfer at the offices or agencies maintained by The Bank of New York in its
capacity as Certificate Registrar, or by any successor Certificate Registrar, in
New York,  New York,  accompanied  by a written  instrument  of transfer in form
satisfactory to the Owner Trustee and the Certificate Registrar duly executed by
the holder hereof or such  holder's  attorney  duly  authorized in writing,  and
thereupon one or more new  Certificates of authorized  denominations  evidencing
the same  aggregate  interest  in the Trust  will be  issued  to the  designated
transferee.

                  The  Certificates  are  issuable  as  registered  Certificates
without coupons in denominations  of at least $20,000 and in integral  multiples
of $1,000 in excess thereof.  Certificates are exchangeable for new Certificates
of like  Class  and  authorized  denominations  evidencing  the  same  aggregate
denomination,  as requested by the  Certificateholder  surrendering the same. No
service charge will be made for any such  registration  of Transfer or exchange,
but the Owner Trustee or the Certificate  Registrar may require payment of a sum
sufficient  to  cover  any tax or  governmental  charge  payable  in  connection
therewith.

                  The Owner Trustee, the Certificate  Registrar and any agent of
the Owner  Trustee or the  Certificate  Registrar  may treat the Person in whose
name this  Certificate  is registered as the owner hereof for all purposes,  and
none of the Owner Trustee, the Certificate  Registrar or any such agent shall be
affected by any notice to the contrary.
<PAGE>
                  The Class D  Certificates  may be  acquired  only by an entity
that is either:  (a) not, and each  account (if any) for which it is  purchasing
the Class D  Certificates  is not (i) an  employee  benefit  plan (as defined in
Section 3(3) of the Employee  Retirement Income Security Act of 1974, as amended
("ERISA")) that is subject to Title I of ERISA, (ii) a plan described in Section
4975(e)(1) of the Internal Revenue Code of 1986, as amended (the "Code") that is
subject to Section 4975 of the Code,  (iii) a  governmental  plan, as defined in
Section 3(32) of ERISA, subject to any federal,  State or local law which is, to
a material extent,  similar to the provisions of Section 406 of ERISA or Section
4975 of the Code, (iv) an entity whose underlying  assets include plan assets by
reason of a plan's investment in the entity (within the meaning of Department of
Labor  Regulation 29 C.F.R.  ss.  2510.3-101 or otherwise  under ERISA) or (v) a
person investing "plan assets" of any such plan (including  without  limitation,
for  purposes of this clause (v), an  insurance  company  general  account,  but
excluding any entity  registered  under the  Investment  Company Act of 1940, as
amended);  or (b) an insurance company acting on behalf of a general account and
(i) on the date of purchase less than 25% of the assets of such general  account
(as reasonably  determined by it) constitute "plan assets" for purposes of Title
I of ERISA and Section  4975 of the Code,  (ii) the purchase and holding of such
Class D  Certificates  are eligible for exemptive  relief under Sections (I) and
(III) of Prohibited  Transaction  Class Exemption 95-60, and (iii) the purchaser
agrees  that if,  after  the  purchaser's  initial  acquisition  of the  Class D
Certificates,  at any time during any calendar quarter 25% or more of the assets
of such general account (as reasonably  determined by it no less frequently than
each calendar quarter) constitute "plan assets" for purposes of Title I of ERISA
or Section 4975 of the Code and no exemption  or exception  from the  prohibited
transaction  rules applies to the continued  holding of the Class D Certificates
under Section 401(c) of ERISA and the final  regulations  thereunder or under an
exemption or regulation  issued by the United  States  Department of Labor under
ERISA,  it will  dispose of all Class D  Certificates  then held in its  general
account by the end of the next following calendar quarter.
<PAGE>
                  In  addition,  the  Certificates  may not be acquired by or on
behalf of a Person  other than (A) a citizen or resident  of the United  States,
(B) a corporation  or  partnership  organized in or under the laws of the United
States or any political  subdivision  thereof, (C) an estate the income of which
is includible in gross income for United States tax purposes,  regardless of its
source, (D) a trust if a U.S. court is able to exercise primary supervision over
the  administration of such trust and one or more Persons meeting the conditions
of this paragraph has the authority to control all substantial  decisions of the
trust or (E) a Person not  described  in clauses  (A)  through  (D) above  whose
ownership  of the  Certificates  is  effectively  connected  with such  Person's
conduct of a trade or business  within the United States  (within the meaning of
the Code) and who provides the Owner Trustee and the Depositor  with an IRS Form
4224 (and such other certifications,  representations, or opinions of counsel as
may be requested by the Owner Trustee or the Depositor).

                  The  obligations  and  responsibilities  created  by the Trust
Agreement and the Trust created thereby shall terminate (i) upon the maturity or
other  liquidation of the last remaining  Receivable and the  disposition of any
amounts  received upon such maturity or  liquidation or (ii) upon the payment to
the Noteholders and the Certificateholders of all amounts required to be paid to
them pursuant to the Indenture,  the Trust  Agreement and the Sale and Servicing
Agreement,  and upon such termination any remaining assets of the Trust shall be
distributed to the Depositor.  The Servicer of the Receivables may at its option
purchase the assets of the Trust at a price  specified in the Sale and Servicing
Agreement,  and such purchase of the Receivables and other property of the Trust
will effect early retirement of the Notes and the  Certificates;  however,  such
right of  purchase  is  exercisable  only as of the  last day of any  Collection
Period as of which the Pool  Balance is less than or equal to 10% of the Initial
Pool Balance.

<PAGE>

                                   ASSIGNMENT

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

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE

(Please print or type name and address, including postal zip code, of assignee)

the within Certificate, and all rights thereunder, hereby irrevocably
constituting and appointing

Attorney to transfer said Certificate on the books of the Certificate
Registrar,  with full power of substitution in the premises.

Dated:

                                                  */

                              Signature Guaranteed:

                                                  */

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

                                                                       EXHIBIT C

                            FORM OF INVESTMENT LETTER
                          QUALIFIED INSTITUTIONAL BUYER

                                                                       [Date]

Ford Credit Auto Owner Trust 2000-E
  as Issuer
The Bank of New York
  as Owner Trustee and
  Certificate Registrar
101 Barclay Street
New York, New York 10286

                  Re:      Ford Credit Auto Owner Trust 2000-E
                           [Class C 7.41% Asset Backed Certificates]
                           [Class D 9.00% Asset Backed Certificates]

Ladies and Gentlemen:

         In  connection  with our proposed  purchase of the [Class C 7.41% Asset
Backed   Certificates]   [Class  D  9.00%  Asset   Backed   Certificates]   (the
"Certificates")  of Ford Credit Auto Owner Trust 2000-E (the "Issuer"),  a trust
formed by Ford Credit Auto  Receivables Two L.P. (the  "Depositor"),  we confirm
that:

         1. The undersigned agrees to be bound by, and not to resell,  transfer,
assign, participate, pledge or otherwise dispose of (any such act, a "Transfer")
the Certificates  except in compliance with, the restrictions and conditions set
forth in the legend on the face of the Certificates and under the Securities Act
of 1933, as amended (the "Securities Act").

         2. We understand  that no subsequent  Transfer of the  Certificates  is
permitted unless we cause our proposed  transferee to provide to the Issuer, the
Certificate  Registrar and the Initial  Purchaser a letter  substantially in the
form of this letter or Exhibit D to the Trust Agreement, as applicable,  or such
other written statement as the Depositor shall prescribe.
<PAGE>
         3. We are a "qualified institutional buyer" (within the meaning of Rule
144A under the Securities  Act) (a "QIB") and we are acquiring the  Certificates
for our own  account  or for a single  account  (which  is a QIB) as to which we
exercise sole investment discretion.

         4.       We are either:

                  (a) not, and each account (if any) for which we are purchasing
                  the  Certificates  is not (i) an  employee  benefit  plan  (as
                  defined  in Section  3(3) of the  Employee  Retirement  Income
                  Security Act of 1974, as amended ("ERISA")) that is subject to
                  Title I of ERISA, (ii) a plan described in Section  4975(e)(1)
                  of the Internal  Revenue Code of 1986, as amended (the "Code")
                  that  is  subject  to  Section  4975  of  the  Code,  (iii)  a
                  governmental  plan,  as  defined  in  Section  3(32) of ERISA,
                  subject  to any  federal,  state or local  law  which is, to a
                  material  extent,  similar to the provisions of Section 406 of
                  ERISA  or  Section  4975 of the  Code,  (iv) an  entity  whose
                  underlying  assets  include  plan assets by reason of a plan's
                  investment in the entity  (within the meaning of Department of
                  Labor  Regulation  29 C.F.R.  Section  2510.3-101 or otherwise
                  under ERISA) or (v) a person  investing  "plan  assets" of any
                  such plan (including without limitation,  for purposes of this
                  clause  (v),  an  insurance   company  general  account,   but
                  excluding an entity  registered  under the Investment  Company
                  Act of 1940, as amended), or

                  (b) an insurance company acting on behalf of a general account
                  and (i) on the date hereof less than 25% of the assets of such
                  general  account (as  reasonably  determined by us) constitute
                  "plan  assets"  for  purposes  of Title I of ERISA and Section
                  4975 of the  Code,  (ii)  the  purchase  and  holding  of such
                  Certificates  are eligible for exemptive relief under Sections
                  (I) and (III) of Prohibited Transaction Class Exemption 95-60,
                  and  (iii)  the   undersigned   agrees  that  if,   after  the
                  undersigned's initial acquisition of the Certificates,  at any
                  time during any calendar  quarter 25% or more of the assets of
                  such general  account (as reasonably  determined by us no less
                  frequently  than  each  calendar  quarter)   constitute  "plan
                  assets" for  purposes  of Title I of ERISA or Section  4975 of
                  the Code and no  exemption or  exception  from the  prohibited
                  transaction  rules  applies  to the  continued  holding of the
                  Certificates  under  Section  401(c)  of ERISA  and the  final
                  regulations  thereunder  or under an exemption  or  regulation
                  issued  by  the  DOL  under  ERISA,  we  will  dispose  of all
                  Certificates  then held in our  general  account by the end of
                  the next following calendar quarter.
<PAGE>

         5. We are a person  who is (i) a  citizen  or  resident  of the  United
States, (ii) a corporation or partnership  organized in or under the laws of the
United States or any political  subdivision thereof,  (iii) an estate the income
of  which  is  includible  in gross  income  for  United  States  tax  purposes,
regardless  of its  source,  (iv) a trust if a U.S.  court  is able to  exercise
primary  supervision  over  the  administration  of such  trust  and one or more
persons  described  in  clauses  (i) to (iii)  above or clause (v) below has the
authority to control all substantial  decisions of the trust or (v) a person not
described in clauses (i) to (iv) above whose  ownership of the  Certificates  is
effectively  connected with such person's  conduct of a trade or business within
the United  States  (within the meaning of the Code) and who provides the Issuer
and  the   Depositor   with  a  Form  4224  (and  such   other   certifications,
representations, or opinions of counsel as may be requested by the Issuer or the
Depositor).

         6. We understand that any purported Transfer of any Certificate (or any
interest therein) in contravention of the restrictions and conditions above will
be null and void (each, a "Void  Transfer"),  and the purported  transferee in a
Void  Transfer  will not be  recognized  by the Issuer or any other  person as a
Certificateholder for any purpose.

         You  are  entitled  to  rely  upon  this  letter  and  are  irrevocably
authorized  to produce this letter or a copy hereof to any  interested  party in
any  administrative or legal proceedings or official inquiry with respect to the
matters covered hereby.

                                    Very truly yours,

                                    By:

                                       Name:
                                       Title:

Securities To Be Purchased:
$                           principal amount of Certificates

<PAGE>

                                                                       EXHIBIT D

                            FORM OF INVESTMENT LETTER
                        INSTITUTIONAL ACCREDITED INVESTOR

                                                                        [Date]

Ford Credit Auto Owner Trust 2000-E
  as Issuer
The Bank of New York
  as Owner Trustee and
  Certificate Registrar
101 Barclay Street
New York, New York 10286

                  Re:      Ford Credit Auto Owner Trust 2000-E
                           [Class C 7.41% Asset Backed Certificates]
                           [Class D 9.00% Asset Backed Certificates]

Ladies and Gentlemen:

         In  connection  with our proposed  purchase of the [Class C 7.41% Asset
Backed   Certificates]   [Class  D  9.00%  Asset   Backed   Certificates]   (the
"Certificates")  of Ford Credit Auto Owner Trust 2000-E (the "Issuer") , a trust
formed by Ford Credit Auto  Receivables Two L.P. (the  "Depositor"),  we confirm
that:

                  1. The  undersigned  agrees to be bound by, and not to resell,
         transfer, assign, participate, pledge or otherwise dispose of (any such
         act, a "Transfer")  the  Certificates  except in compliance  with,  the
         restrictions  and conditions set forth in the legend on the face of the
         Class D  Certificates  and under the Securities Act of 1933, as amended
         (the "Securities Act").

                  2.  We  understand   that  no   subsequent   Transfer  of  the
         Certificates  is permitted  unless we cause our proposed  transferee to
         provide  to the  Issuer,  the  Certificate  Registrar  and the  Initial
         Purchaser a letter  substantially in the form of this letter or Exhibit
         C to  the  Trust  Agreement,  as  applicable,  or  such  other  written
         statement as the Depositor shall prescribe.

<PAGE>
                  3.  We  are a  "qualified  institutional  buyer"  (within  the
         meaning  of Rule 144A  under the  Securities  Act) (a "QIB") and we are
         acquiring the  Certificates for our own account or for a single account
         (which is a QIB) as to which we exercise sole investment discretion.

                  4. We are either:

                  (a) not, and each account (if any) for which we are purchasing
                  the  Certificates  is not (i) an  employee  benefit  plan  (as
                  defined  in Section  3(3) of the  Employee  Retirement  Income
                  Security Act of 1974, as amended ("ERISA")) that is subject to
                  Title I of ERISA, (ii) a plan described in Section  4975(e)(1)
                  of the Internal  Revenue Code of 1986, as amended (the "Code")
                  that  is  subject  to  Section  4975  of  the  Code,  (iii)  a
                  governmental  plan,  as  defined  in  Section  3(32) of ERISA,
                  subject  to any  federal,  state or local  law  which is, to a
                  material  extent,  similar to the provisions of Section 406 of
                  ERISA  or  Section  4975 of the  Code,  (iv) an  entity  whose
                  underlying  assets  include  plan assets by reason of a plan's
                  investment in the entity  (within the meaning of Department of
                  Labor  Regulation  29 C.F.R.  Section  2510.3-101 or otherwise
                  under ERISA) or (v) a person  investing  "plan  assets" of any
                  such plan (including without limitation,  for purposes of this
                  clause  (v),  an  insurance   company  general  account,   but
                  excluding an entity  registered  under the Investment  Company
                  Act of 1940, as amended), or

                  (b) an insurance company acting on behalf of a general account
                  and (i) on the date hereof less than 25% of the assets of such
                  general  account (as  reasonably  determined by us) constitute
                  "plan  assets"  for  purposes  of Title I of ERISA and Section
                  4975 of the  Code,  (ii)  the  purchase  and  holding  of such
                  Certificates  are eligible for exemptive relief under Sections
                  (I) and (III) of Prohibited Transaction Class Exemption 95-60,
                  and  (iii)  the   undersigned   agrees  that  if,   after  the
                  undersigned's initial acquisition of the Certificates,  at any
                  time during any calendar  quarter 25% or more of the assets of
                  such general  account (as reasonably  determined by us no less
                  frequently  than  each  calendar  quarter)   constitute  "plan
                  assets" for  purposes  of Title I of ERISA or Section  4975 of
                  the Code and no  exemption or  exception  from the  prohibited
                  transaction  rules  applies  to the  continued  holding of the
                  Certificates  under  Section  401(c)  of ERISA  and the  final
                  regulations  thereunder  or under an exemption  or  regulation
                  issued  by  the  DOL  under  ERISA,  we  will  dispose  of all
                  Certificates  then held in our  general  account by the end of
                  the next following calendar quarter.

<PAGE>

                  5. We are a person  who is (i) a citizen  or  resident  of the
         United States, (ii) a corporation or partnership  organized in or under
         the laws of the United  States or any  political  subdivision  thereof,
         (iii) an estate the income of which is  includible  in gross income for
         United States tax purposes, regardless of its source, (iv) a trust if a
         U.S.  court  is  able  to  exercise   primary   supervision   over  the
         administration  of such  trust  and one or more  persons  described  in
         clauses  (i) to (iii)  above or clause (v) below has the  authority  to
         control  all  substantial  decisions  of the trust or (v) a person  not
         described  in  clauses  (i)  to  (iv)  above  whose  ownership  of  the
         Certificates is effectively  connected with such person's  conduct of a
         trade or business  within the United States  (within the meaning of the
         Code) and who  provides the Issuer and the  Depositor  with a Form 4224
         (and such other certifications, representations, or opinions of counsel
         as may be requested by the Issuer or the Depositor).

                 6.  We  understand   that  any   purported   Transfer  of  any
         Certificate  (or  any  interest   therein)  in   contravention  of  the
         restrictions  and conditions above will be null and void (each, a "Void
         Transfer"), and the purported transferee in a Void Transfer will not be
         recognized by the Issuer or any other person as a Certificateholder for
         any purpose.

         You  are  entitled  to  rely  upon  this  letter  and  are  irrevocably
authorized  to produce this letter or a copy hereof to any  interested  party in
any  administrative or legal proceedings or official inquiry with respect to the
matters covered hereby.

                                    Very truly yours,

                                    By:
                                       Name:
                                       Title:

Securities To Be Purchased:
$                          principal amount of Certificates

<PAGE>

                                                                       EXHIBIT E

                          FORM OF RULE 144A TRANSFEROR
                                   CERTIFICATE

                                                                       [Date]

The Bank of New York
  as Owner Trustee and
  Certificate Registrar
101 Barclay Street
New York, New York 10286

                           Re: Ford Credit Auto Owner Trust 2000-E
                               [Class C 7.41% Asset Backed Certificates]
                               [Class D 9.00% Asset Backed Certificates]

Ladies and Gentlemen:

         This is to notify you as to the  transfer of $ [*] in  denomination  of
[Class  C  7.41%  Asset  Backed   Certificates]  [Class  D  9.00%  Asset  Backed
Certificates]  (the  "Certificates") of Ford Credit Auto Owner Trust 2000-E (the
"Issuer").

         The undersigned is the holder of the  Certificates and with this notice
hereby deposits with the Owner Trustee $[*] in denomination of Certificates  and
requests that Certificates of the same class in the same aggregate  denomination
be issued,  executed  and  authenticated  and  registered  to the  purchaser  on
___________, 200[], as specified in the Trust Agreement dated as of September 1,
2000 relating to the Certificates, as follows:

         Name:                      Denominations:
         Address:
         Taxpayer I.D. No:

         The  undersigned  represents  and  warrants  that the  undersigned  (i)
reasonably  believes  the  purchaser is a  "qualified  institutional  buyer," as
defined in Rule 144A under the  Securities  Act of 1933 (the  "Act"),  (ii) such
purchaser has acquired the Certificates in a transaction  effected in accordance
with the exemption  from the  registration  requirements  of the Act provided by
Rule 144A,  (iii) if the purchaser has purchased the Certificates for an account
for which it is acting  as  fiduciary  or agent,  such  account  is a  qualified
institutional buyer and (iv) the purchaser is acquiring Certificates for its own
account or for an  institutional  account for which it is acting as fiduciary or
agent.

                                       Very truly yours,

                                       [NAME OF HOLDER OF CERTIFICATES]

                                       By:

                                               Name:
                                               Title:

[*] authorized denomination

<PAGE>

                                                                       EXHIBIT F

                          FORM OF CERTIFICATE OF TRUST

                       FORD CREDIT AUTO OWNER TRUST 2000-E

                  This  Certificate  of Trust of Ford  Credit  Auto Owner  Trust
2000-E (the "Trust"),  dated as of September 1, 2000, is being duly executed and
filed by The Bank of New York  (Delaware),  a Delaware banking  corporation,  as
Delaware  trustee (the "Delaware  Trustee") and The Bank of New York, a New York
banking corporation,  as owner trustee (the "Owner Trustee"), to form a business
trust under the Delaware Business Trust Act (12 Delaware Code, ss. 3801 et seq.)
(the "Act").

                  1. Name.  The name of the business trust formed hereby is
            Ford Credit Auto Owner Trust 2000-E.

                  2. Delaware Trustee.  The name and business address of the
            trustee of the Trust in the State of Delaware is The Bank of
            New York (Delaware), White Clay Center, Route 273, Newark, Delaware
            19711.

                  3. Effective Date. This Certificate of Trust shall be
            effective upon filing.

<PAGE>

                  IN WITNESS WHEREOF,  the undersigned,  being the sole trustees
of the Trust, have executed this Certificate of Trust as of the date first above
written in accordance with Section 3811(a)(1) of the Act.

                                By: THE BANK OF NEW YORK,
                                    not in its individual capacity but
                                    solely as Owner Trustee under a Trust
                                    Agreement dated as of September 1, 2000

                                By:
                                            Name:
                                            Title:

                                By: THE BANK OF NEW YORK (DELAWARE),
                                    not in its individual capacity but
                                    solely as Delaware Trustee under a Trust
                                    Agreement dated as of September 1, 2000

                                By:

                                            Name:
                                            Title:

<PAGE>

                                                                     APPENDIX A

                              Definitions and Usage

                                   SEE TAB 15.

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