Document:

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                                                                  EXECUTION COPY

                                                                     EXHIBIT 4.2

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                                 TRUST AGREEMENT

                                     BETWEEN

                         CAPITAL AUTO RECEIVABLES, INC.,

                                     SELLER

                                       AND

                      DEUTSCHE BANK TRUST COMPANY DELAWARE,

                                  OWNER TRUSTEE

                          DATED AS OF FEBRUARY 16, 2006

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                                TABLE OF CONTENTS

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                                                                                                               PAGE

<S>                   <C>                                                                                      <C>
ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE..............................................................1

     SECTION 1.1      DEFINITIONS.................................................................................1

ARTICLE II ORGANIZATION...........................................................................................1

     SECTION 2.1      NAME........................................................................................1
     SECTION 2.2      OFFICE......................................................................................1
     SECTION 2.3      PURPOSES AND POWERS.........................................................................1
     SECTION 2.4      APPOINTMENT OF OWNER TRUSTEE................................................................2
     SECTION 2.5      INITIAL CAPITAL CONTRIBUTION OF OWNER TRUST ESTATE..........................................2
     SECTION 2.6      DECLARATION OF TRUST........................................................................2
     SECTION 2.7      LIABILITY OF THE CERTIFICATEHOLDERS.........................................................3
     SECTION 2.8      TITLE TO TRUST PROPERTY.....................................................................3
     SECTION 2.9      SITUS OF TRUST..............................................................................3
     SECTION 2.10     REPRESENTATIONS AND WARRANTIES OF THE SELLER................................................3
     SECTION 2.11     TAX TREATMENT...............................................................................4

ARTICLE III THE CERTIFICATES......................................................................................5

     SECTION 3.1      INITIAL CERTIFICATE OWNERSHIP...............................................................5
     SECTION 3.2      FORM OF THE CERTIFICATES....................................................................5
     SECTION 3.3      EXECUTION, AUTHENTICATION AND DELIVERY......................................................5
     SECTION 3.4      REGISTRATION OF CERTIFICATES; REGISTRATION OF TRANSFER AND EXCHANGE OF
                      CERTIFICATES................................................................................5
     SECTION 3.5      MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES...........................................7
     SECTION 3.6      PERSONS DEEMED CERTIFICATEHOLDERS...........................................................8
     SECTION 3.7      ACCESS TO LIST OF CERTIFICATEHOLDERS' NAMES AND ADDRESSES...................................8
     SECTION 3.8      MAINTENANCE OF CORPORATE TRUST OFFICE.......................................................8
     SECTION 3.9      APPOINTMENT OF PAYING AGENT.................................................................9
     SECTION 3.10     [RESERVED.].................................................................................9
     SECTION 3.11     [RESERVED.].................................................................................9
     SECTION 3.12     NOTICES TO CLEARING AGENCY..................................................................9
     SECTION 3.13     DEFINITIVE CERTIFICATES.....................................................................9
     SECTION 3.14     SELLER AS CERTIFICATEHOLDER................................................................10

ARTICLE IV ACTIONS BY OWNER TRUSTEE..............................................................................10

     SECTION 4.1      PRIOR NOTICE TO CERTIFICATEHOLDERS WITH RESPECT TO CERTAIN MATTERS.........................10
     SECTION 4.2      ACTION BY CERTIFICATEHOLDERS WITH RESPECT TO CERTAIN MATTERS...............................11
     SECTION 4.3      ACTION BY CERTIFICATEHOLDERS WITH RESPECT TO BANKRUPTCY....................................11
     SECTION 4.4      RESTRICTIONS ON CERTIFICATEHOLDERS' POWER..................................................11
     SECTION 4.5      MAJORITY CONTROL...........................................................................11

ARTICLE V APPLICATION OF TRUST FUNDS; CERTAIN DUTIES.............................................................11

     SECTION 5.1      ESTABLISHMENT OF CERTIFICATE DISTRIBUTION ACCOUNT..........................................11
     SECTION 5.2      APPLICATION OF TRUST FUNDS.................................................................12
     SECTION 5.3      METHOD OF PAYMENT..........................................................................13
     SECTION 5.4      ACCOUNTING AND REPORTS TO THE CERTIFICATEHOLDERS, THE INTERNAL REVENUE
                      SERVICE AND OTHERS.........................................................................13
     SECTION 5.5      SIGNATURE ON RETURNS; OTHER TAX MATTERS....................................................13

ARTICLE VI THE OWNER TRUSTEE.....................................................................................14

     SECTION 6.1      DUTIES OF OWNER TRUSTEE....................................................................14
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<S>                   <C>                                                                                      <C>
     SECTION 6.2      RIGHTS OF OWNER TRUSTEE....................................................................15
     SECTION 6.3      ACCEPTANCE OF TRUSTS AND DUTIES............................................................15
     SECTION 6.4      ACTION UPON INSTRUCTION BY CERTIFICATEHOLDERS..............................................17
     SECTION 6.5      FURNISHING OF DOCUMENTS....................................................................17
     SECTION 6.6      REPRESENTATIONS AND WARRANTIES OF OWNER TRUSTEE............................................17
     SECTION 6.7      RELIANCE; ADVICE OF COUNSEL................................................................18
     SECTION 6.8      OWNER TRUSTEE MAY OWN CERTIFICATES AND NOTES...............................................19
     SECTION 6.9      COMPENSATION AND INDEMNITY.................................................................19
     SECTION 6.10     REPLACEMENT OF OWNER TRUSTEE...............................................................19
     SECTION 6.11     MERGER OR CONSOLIDATION OF OWNER TRUSTEE...................................................20
     SECTION 6.12     APPOINTMENT OF CO-TRUSTEE OR SEPARATE TRUSTEE..............................................20
     SECTION 6.13     ELIGIBILITY REQUIREMENTS FOR OWNER TRUSTEE.................................................22

ARTICLE VII TERMINATION OF TRUST AGREEMENT.......................................................................22

     SECTION 7.1      TERMINATION OF TRUST AGREEMENT.............................................................22

ARTICLE VIII AMENDMENTS..........................................................................................23

     SECTION 8.1      AMENDMENTS WITHOUT CONSENT OF CERTIFICATEHOLDERS OR NOTEHOLDERS............................23
     SECTION 8.2      AMENDMENTS WITH CONSENT OF CERTIFICATEHOLDERS AND NOTEHOLDERS..............................24
     SECTION 8.3      FORM OF AMENDMENTS.........................................................................24

ARTICLE IX MISCELLANEOUS.........................................................................................25

     SECTION 9.1      NO LEGAL TITLE TO OWNER TRUST ESTATE.......................................................25
     SECTION 9.2      LIMITATIONS ON RIGHTS OF OTHERS............................................................25
     SECTION 9.3      DERIVATIVE ACTIONS.........................................................................25
     SECTION 9.4      NOTICES....................................................................................25
     SECTION 9.5      SEVERABILITY...............................................................................25
     SECTION 9.6      COUNTERPARTS...............................................................................25
     SECTION 9.7      SUCCESSORS AND ASSIGNS.....................................................................25
     SECTION 9.8      NO PETITION................................................................................26
     SECTION 9.9      NO RECOURSE................................................................................26
     SECTION 9.10     HEADINGS...................................................................................26
     SECTION 9.11     GOVERNING LAW..............................................................................27
     SECTION 9.12     INDEMNIFICATION BY AND REIMBURSEMENT OF THE SERVICER.......................................27
     SECTION 9.13     EFFECT OF AMENDMENT AND RESTATEMENT........................................................27
     SECTION 9.14     INFORMATION TO BE PROVIDED BY THE OWNER TRUSTEE............................................27

EXHIBIT A                  Form of Certificate

EXHIBIT B                  Certificate of Trust

EXHIBIT C                  Form of Undertaking Letter
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                  TRUST AGREEMENT, dated as of February 16, 2006, between
CAPITAL AUTO RECEIVABLES, INC., a Delaware corporation, as seller (the
"Seller"), and DEUTSCHE BANK TRUST COMPANY DELAWARE, a Delaware banking
corporation, as trustee and not in its individual capacity (the "Owner
Trustee").

                  WHEREAS, the Seller and the Owner Trustee previously entered
into a certain Trust Agreement dated January 26, 2006 (the "Original Trust
Agreement") that contemplated this Trust Agreement.

                  WHEREAS, the Seller and the Owner Trustee desire hereby to
amend and restate the Original Trust Agreement in its entirety.

                  NOW, THEREFORE, the Seller and the Owner Trustee hereby agree
as follows:

                                   ARTICLE I
                   DEFINITIONS AND INCORPORATION BY REFERENCE

     Section 1.1  Definitions. Certain capitalized terms used in this Trust
Agreement shall have the respective meanings assigned to them in Part I of
Appendix A to the Trust Sale and Servicing Agreement of even date herewith among
the Seller, the Servicer and the Trust (the "Trust Sale and Servicing
Agreement"). All references herein to the "Agreement" are to this Trust
Agreement. All references herein to Articles, Sections and subsections are to
Articles, Sections and subsections of this Agreement unless otherwise specified.
The rules of construction set forth in Part II of Appendix A to the Trust Sale
and Servicing Agreement shall be applicable to this Agreement.

                                   ARTICLE II
                                  ORGANIZATION

     Section 2.1  Name. The Trust created hereby shall be known as Capital
Auto Receivables Asset Trust 2006-1, in which name the Owner Trustee may conduct
the business of the Trust, make and execute contracts and other instruments on
behalf of the Trust and sue and be sued on behalf of the Trust. The Owner
Trustee is hereby authorized to file the Certificate of Trust on behalf of the
Trust pursuant to Section 3810(a) of the Statutory Trust Act.

     Section 2.2  Office. The office of the Trust shall be in care of the
Owner Trustee at the Corporate Trust Office or at such other address in Delaware
as the Owner Trustee may designate by written notice to the Certificateholders
and the Seller.

     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:

               (a) to acquire, manage and hold the Receivables;

               (b) to issue the Notes pursuant to the Indenture and the
Certificates pursuant to this Agreement, and to sell, transfer or exchange the
Notes and the Certificates;

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               (c) to acquire certain property and assets from the Seller on the
Closing Date pursuant to the Trust Sale and Servicing Agreement and any other
Further Transfer and Servicing Agreements, to make payments to the Noteholders
and the Certificateholders, to make deposits into and withdrawals from the
Reserve Account and to pay the organizational, start-up and transactional
expenses of the Trust;

               (d) to assign, grant, transfer, pledge, mortgage and convey the
Trust Estate pursuant to the terms of the Indenture and to hold, manage and
distribute to the Certificateholders pursuant to the terms of this Agreement and
the Trust Sale and Servicing Agreement any portion of the Trust Estate released
from the lien of, and remitted to the Trust pursuant to, the Indenture;

               (e) to enter into and perform its obligations and exercise its
rights under the Basic Documents to which it is to be a party;

               (f) to enter into interest rate swaps and caps and other
derivative instruments in connection with the Offered Certificates and the
Offered Notes;

               (g) to enter into interest rate swaps and caps and other
derivative instruments in connection with the Retained Certificates;

               (h) 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

               (i) 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 Securityholders.

               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 Basic Documents.

     Section 2.4  Appointment of Owner Trustee. The Seller 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  Initial Capital Contribution of Owner Trust Estate. The Seller
sold, assigned, transferred, conveyed and set over to the Owner Trustee, as of
January 26, 2006, the sum of one dollar. The Owner Trustee hereby acknowledges
receipt in trust from the Seller, as of January 26, 2006, of the foregoing
contribution which constituted the initial Owner Trust Estate. The Seller shall
pay organizational expenses of the Trust as they may arise or shall, upon the
request of the Owner Trustee, promptly reimburse the Owner Trustee for any such
expenses paid by the Owner Trustee.

     Section 2.6  Declaration of Trust. The Owner Trustee hereby declares
that it shall hold the Owner Trust Estate (in the name of the Trust and not in
the Owner Trustee's name for the Trust, except as required by, and in accordance
with, Section 2.8) in trust upon and subject to the

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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 the Trust constitute a statutory trust
under the Statutory Trust Act, that this Agreement constitute the governing
instrument of such statutory trust and that the Certificates represent the
beneficial interests therein. The rights of the Certificateholders shall be
determined as set forth herein and in the Statutory Trust Act and the
relationship between the parties hereto created by this Agreement shall not
constitute indebtedness for any purpose. Effective as of the date hereof, the
Owner Trustee shall have all rights, powers and duties set forth herein and in
the Statutory Trust Act with respect to accomplishing the purposes of the Trust.

     Section 2.7  Liability of the Certificateholders. Certificateholders
and holders of beneficial interests therein shall be entitled to the same
limitation of personal liability extended to stockholders of private
corporations for profit organized under the General Corporation Law of Delaware.

     Section 2.8  Title to Trust Property. Legal title to all 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 transferred to and vested in the Owner Trustee,
a co-trustee and/or a separate trustee, as the case may be. Any such trustee
shall take such part of the Owner Trust Estate subject to the security interest
of the Indenture Trustee therein established under the Indenture. Such trustee's
acceptance of its appointment shall constitute acknowledgment of such security
interest and shall constitute a Grant to the Indenture Trustee of a security
interest in all property held by such trustee. Any such trustee shall prepare
and file all such financing statements naming such trustee as debtor that are
necessary or advisable to perfect, make effective or continue the lien and
security interest of the Indenture Trustee.

     Section 2.9  Situs of Trust. The Trust shall be located and administered in
the States of Delaware or 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 Delaware; provided, however, that nothing herein shall restrict or prohibit
the Owner Trustee from having employees within or without the State of Delaware.
Payments shall be received by the Trust only in Delaware or New York, and
payments shall be made by the Trust only from Delaware or New York. The only
office of the Trust shall be the Corporate Trust Office in Delaware.

     Section 2.10 Representations and Warranties of the Seller. The Seller
hereby represents and warrants to the Owner Trustee that:

               (a) The Seller has been duly organized and is validly existing as
a corporation in good standing under the laws of the State of Delaware, with
power and authority to own its properties and to conduct its business as such
properties are presently owned and such business is presently conducted and had
at all relevant times, and now has, power, authority and legal right to acquire
and own the Receivables contemplated to be transferred to the Trust pursuant to
the Trust Sale and Servicing Agreement.

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               (b) The Seller is duly qualified to do business as a foreign
corporation in good standing, and has obtained all necessary licenses and
approvals in all jurisdictions in which the ownership or lease of property or
the conduct of its business requires such qualifications.

               (c) The Seller has the power and authority to execute and deliver
this Agreement and any other Basic Documents to which the Seller is a party and
to carry out its terms, the Seller has full power and authority to sell and
assign the property to be sold and assigned to and deposited with the Issuer as
part of the Trust and the Seller has duly authorized such sale and assignment to
the Issuer by all necessary corporate action; and the execution, delivery and
performance of this Agreement have been duly authorized by the Seller by all
necessary corporate action.

               (d) The consummation of the transactions contemplated by this
Agreement and any other Basic Documents to which the Seller is a party, and the
fulfillment of the terms of this Agreement and any other Basic Documents to
which the Seller is a party 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) a default under, the certificate of incorporation or by-laws of the
Seller, or any indenture, agreement or other instrument to which the Seller is a
party or by which it is bound, or 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), or
violate any law or, to the best of the Seller's knowledge, any order, rule or
regulation applicable to the Seller of any court or of any federal or state
regulatory body, administrative agency or other governmental instrumentality
having jurisdiction over the Seller or any of its properties.

     Section 2.11 Tax Treatment. As long as the Seller is the sole owner of the
Certificates, the Seller and Owner Trustee, by entering into this Agreement, (a)
express their intention that the Trust will be disregarded for federal income
tax purposes and will be treated as a division of the Seller and (b) agree that
Section 5.5 of this Agreement will not be applicable. If the Seller is not the
sole owner of the Certificates, through sale of the Certificates, issuance by
the Trust of additional Certificates to a Person other than the Seller or
otherwise, the Seller and the Owner Trustee, by entering into this Agreement,
and the Certificateholders, by acquiring any Certificates or interest therein,
(i) express their intention that the Certificates will qualify as equity
interests in either (A) a division of the Seller, or any other single Person,
disregarded as a separate entity for federal income tax purposes if all
Certificates are owned solely by the Seller or by such single Person, or (B) a
partnership for federal income tax purposes if the Certificates are owned by
more than one Person and (ii) unless otherwise required by the appropriate
taxing authorities, agree to treat the Certificates as equity interests in an
entity as described in clause (i) of this Section 2.11 for the purposes of
federal income taxes, state and local income and franchise taxes, Michigan
single business tax, and any other taxes imposed upon, measured by, or based
upon gross or net income. The parties agree that, unless otherwise required by
appropriate tax authorities, the Trust shall file or cause to be filed annual or
other necessary returns, reports and other forms consistent with such
characterization of the Trust for such tax purposes.

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                                  ARTICLE III
                                THE CERTIFICATES

     Section 3.1 Initial Certificate Ownership. As of the formation of the Trust
by the contribution by the Seller pursuant to Section 2.5, the Seller has been
the sole Certificateholder.

     Section 3.2 Form of the Certificates.

               (a) The Certificates shall be substantially in the form of
Exhibit A. The Certificates shall represent the entire beneficial interest in
the Trust. The Certificates shall be executed on behalf of the Trust by manual
or facsimile signature of a Responsible 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 duly issued, fully paid and non-assessable
beneficial interests in the Trust, notwithstanding that such individuals or any
of them shall have ceased to be so authorized prior to the authentication and
delivery of such Certificates or did not hold such offices at the date of
authentication and delivery of such Certificates.

               (b) The Certificates 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
Certificates, as evidenced by their execution of such Certificates. The
Certificates shall be fully registered.

               (c) The Certificates shall be issued in fully-registered form.
The terms of the Certificates set forth in Exhibit A shall form part of this
Agreement.

     Section 3.3 Execution, Authentication and Delivery. Concurrently with the
sale of the Receivables to the Trust pursuant to the Trust Sale and Servicing
Agreement, the Owner Trustee shall cause a single Certificate representing the
entire beneficial interest in the Trust to be executed on behalf of the Trust,
authenticated and delivered to or upon the written order of the Seller, signed
by its chairman of the board, its president or any vice president, without
further corporate action by the Seller. Such Certificate shall be issued to and
held by the Seller, as the initial Certificateholder. No Certificate shall
entitle its holder to any benefit under this Agreement, or shall be valid for
any purpose, unless there shall appear on such Certificate a certificate of
authentication substantially in the form set forth in Exhibit A, executed by the
Owner Trustee or Deutsche Bank Trust Company Americas, as the Owner Trustee's
authenticating agent, 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 3.4 Registration of Certificates; Registration of 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 3.8, a Certificate Register
in which, subject to such reasonable regulations as it may prescribe, the Owner
Trustee shall provide for the registration of Certificates and of transfers and
exchanges of Certificates as provided herein. Deutsche Bank Trust Company
Americas shall be the initial Certificate Registrar. Upon any resignation of a

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Certificate Registrar, the Owner Trustee shall promptly appoint a successor or,
if it elects not to make such an appointment, assume the duties of Certificate
Registrar.

               (b) The initial Certificateholder may at any time, without
consent of the Noteholders, sell, transfer, convey or assign in any manner its
rights to and interests in the Certificates (including its right to
distributions from the Reserve Account), provided that: (i) such action will not
result in a reduction or withdrawal of the rating of any class of Notes, (ii)
the Certificateholder provides to the Owner Trustee and the Indenture Trustee an
opinion of independent counsel that such action will not cause the Trust to be
treated as an association (or publicly traded partnership) taxable as a
corporation for federal income tax purposes, (iii) such transferee or assignee
agrees to take positions for tax purposes consistent with the tax positions
agreed to be taken by the Certificateholder, (iv) the conditions set forth in
Section 3.4(g) have been satisfied. In addition, no transfer of a Certificate
shall be registered unless the transferee shall have provided to the Owner
Trustee and the Certificate Registrar an opinion of counsel that in connection
with such transfer no registration of the Certificates is required under the
Securities Act or applicable state law or that such transfer is otherwise being
made in accordance with all applicable federal and state securities laws and (v)
in connection with any transfer of less than all of the interests in the
Certificates, the transferor and transferee shall specify the respective
interests in the Certificates to be held by the transferor and transferee, which
interests may be determined by a formula or on any other basis agreed by the
transferor and transferee. If agreed by the transferor and transferee, different
interests may be used for distributions of proceeds and for purposes of voting
the Certificates. The transferor shall notify the Owner Trustee of any such
agreement in connection with such transfer.

               (c) In the event that the Seller is no longer the sole
Certificateholder, the Administrator will promptly prepare amendments (subject
to the provisions regarding amendments in the applicable Basic Documents) to the
Basic Documents to the extent necessary to reflect the establishment of the
Certificate Distribution Account and the making of Distributions to the
Certificateholders and such other matters as shall be agreed between the Seller
and the Owner Trustee. The expense of the foregoing amendments shall be paid by
the Administrator.

               (d) Upon surrender for registration of transfer of any
Certificate at the office or agency maintained pursuant to Section 3.8, the
Owner Trustee shall execute on behalf of the Trust, authenticate and deliver (or
shall cause Deutsche Bank Trust Company Americas as its authenticating agent to
authenticate and deliver), in the name of the designated transferee or
transferees, one or more new Certificates of a like aggregate amount dated the
date of authentication by the Owner Trustee or any authenticating agent.

               (e) At the option of a Holder, Certificates may be exchanged for
other Certificates of a like percentage interest in the Trust, as shown on the
applicable Certificates, upon surrender of the Certificates to be exchanged at
the Corporate Trust Office maintained pursuant to Section 3.8. Whenever any
Certificates are so surrendered for exchange, the Owner Trustee shall execute on
behalf of the Trust, authenticate and deliver (or shall cause Deutsche Bank
Trust Company Americas as its authenticating agent to authenticate and deliver)
one or more Certificates dated the date of authentication by the Owner Trustee
or any authenticating agent. Such Certificates shall be delivered to the Holder
making the exchange.

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               (f) 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 Holder or his attorney duly authorized in writing and such other
documents and instruments as may be required by Section 3.4(b). Each Certificate
surrendered for registration of transfer or exchange shall be canceled and
subsequently destroyed or otherwise disposed of by the Owner Trustee or
Certificate Registrar in accordance with its customary practice.

               (g) 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 and any other expenses of the Owner Trustee in connection with any
transfer or exchange of Certificates.

               (h) The Certificates may not be acquired by or for the account of
(i) an "employee benefit plan," as defined in Section 3(3) of ERISA, whether or
not such employee benefit plan is subject to the provisions of Title I of ERISA,
(ii) a "plan," as described in Section 4975(e)(1) of the Code, or (iii) any
entity whose underlying assets include plan assets by reason of investment by an
employee benefit plan or plan in such entity other than an "insurance company
general account," as defined in Prohibited Transaction Class Exemption 95-60,
whose underlying assets include less than 25% plan assets and for which the
purchase and holding of Certificates is eligible and satisfies all conditions
for relief under Prohibited Transaction Class Exemption 95-60.

     Section 3.5 Mutilated, Destroyed, Lost or Stolen Certificates.

               (a) If (i) any mutilated Certificate is surrendered to the
Certificate Registrar, or the Certificate Registrar receives evidence to its
satisfaction of the destruction, loss or theft of any Certificate, and (ii)
there is delivered to the Certificate Registrar, the Owner Trustee and the Trust
such security or indemnity as may be required by them to hold each of them
harmless, then, in the absence of notice to the Certificate Registrar or the
Owner Trustee that such Certificate has been acquired by a protected purchaser,
the Owner Trustee shall execute on behalf of the Trust and the Owner Trustee
shall authenticate and deliver (or shall cause Deutsche Bank Trust Company
Americas as its authenticating agent to authenticate and deliver), in exchange
for or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a
replacement Certificate of a like percentage interest in the Trust, as shown on
the Certificate; provided, however, that if any such destroyed, lost or stolen
Certificate, but not a mutilated Certificate, shall have become or within seven
(7) days shall be due and payable, then instead of issuing a replacement
Certificate the Owner Trustee may pay such destroyed, lost or stolen Certificate
when so due or payable.

               (b) If, after the delivery of a replacement Certificate or
payment in respect of a destroyed, lost or stolen Certificate pursuant to
Section 3.5(a), a protected purchaser of the original Certificate in lieu of
which such replacement Certificate was issued presents for payment such original
Certificate, the Owner Trustee shall be entitled to recover such replacement
Certificate (and any distributions or payments made with respect thereto) or
such payment from the Person to whom it was delivered or any Person taking such
replacement Certificate from such Person to whom such replacement Certificate
was delivered or any

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<PAGE>

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 Owner Trustee in connection
therewith.

               (c) In connection with the issuance of any replacement
Certificate under this Section 3.5, the Owner Trustee may require the payment by
the Holder of such Certificate 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 Owner Trustee and
the Certificate Registrar) connected therewith.

               (d) Any duplicate Certificate issued pursuant to this Section 3.5
in replacement of any mutilated, destroyed, lost or stolen Certificate shall
constitute an original additional beneficial interest in the Trust, whether or
not the mutilated, destroyed, lost or stolen Certificate shall be found at any
time or be enforced by anyone, and shall be entitled to all the benefits of this
Agreement equally and proportionately with any and all other Certificates duly
issued hereunder.

               (e) The provisions of this Section 3.5 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 Certificates.

     Section 3.6 Persons Deemed Certificateholders. Prior to due presentation of
a Certificate for registration of transfer, the Owner Trustee or the Certificate
Registrar may treat the Person in whose name any Certificate shall be registered
in the Certificate Register as the Certificateholder of such Certificate for the
purpose of receiving distributions pursuant to Article V and for all other
purposes whatsoever, and neither the Owner Trustee nor the Certificate Registrar
shall be affected by any notice to the contrary.

     Section 3.7 Access to List of Certificateholders' Names and Addresses. The
Owner Trustee shall furnish or cause to be furnished to the Servicer and the
Seller, within fifteen (15) days after receipt by the Owner Trustee of a request
therefor from the Servicer or the Seller in writing, a list of the names and
addresses of the Certificateholders as of the most recent Record Date. Each
Holder, by receiving and holding a Certificate, shall be deemed to have agreed
not to hold any of the Servicer, the Seller 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 3.8 Maintenance of Corporate Trust Office. The Owner Trustee shall
maintain in the Borough of Manhattan, the City 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 offices of Deutsche Bank Trust Company
Americas, 60 Wall Street, New York, NY 10005, as its principal office for such
purposes. The Owner Trustee shall give prompt written notice to the Seller, to
the Servicer and to the Certificateholders of any change in the location of the
Certificate Register or any such office or agency.

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     Section 3.9 Appointment of Paying Agent. Except as otherwise provided in
Section 5.2, the Paying Agent shall make distributions to Certificateholders
from the Certificate Distribution Account pursuant to Section 5.2 and shall
report the amounts of such distributions to the Owner Trustee and the Servicer;
provided, however, that no such reports shall be required so long as the Seller
is the sole Certificateholder. Any Paying Agent shall have the revocable power
to withdraw funds from the Certificate Distribution Account for the purpose of
making the distributions referred to above. The Owner Trustee may revoke such
power and remove the Paying Agent if the Owner Trustee determines in its sole
discretion that the Paying Agent shall have failed to perform its obligations
under this Agreement in any material respect. The Paying Agent shall initially
be Deutsche Bank Trust Company Americas, and any co-paying agent chosen by
Deutsche Bank Trust Company Americas, and acceptable to the Owner Trustee.
Deutsche Bank Trust Company Americas shall be permitted to resign as Paying
Agent upon thirty (30) days' written notice to the Owner Trustee. If Deutsche
Bank Trust Company Americas shall no longer be the Paying Agent, the Owner
Trustee shall appoint a successor to act as Paying Agent (which shall be a bank
or trust company). The Owner Trustee shall cause such successor Paying Agent or
any additional Paying Agent appointed by the Owner Trustee to execute and
deliver to the Owner Trustee an instrument in which such successor Paying Agent
or additional Paying Agent shall agree with the Owner Trustee that as Paying
Agent, such successor Paying Agent or additional Paying Agent shall 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 Paying Agent shall return all unclaimed funds to
the Owner Trustee and upon removal of a Paying Agent such Paying Agent shall
also return all funds in its possession to the Owner Trustee. The provisions of
Sections 6.3, 6.6, 6.7 and 6.9 shall apply to the Owner Trustee also in its role
as Paying Agent for so long as the Owner Trustee shall act as Paying Agent and,
to the extent applicable, to any other paying agent, certificate registrar or
authenticating agent appointed hereunder. Any reference in this Agreement to the
Paying Agent shall include any co-paying agent unless the context requires
otherwise.

     Section 3.10 [Reserved.]

     Section 3.11 [Reserved.]

     Section 3.12 Notices to Clearing Agency. Whenever a notice or other
communication to the Certificateholders is required under this Agreement, unless
and until Definitive Certificates shall have been issued to Certificate Owners
pursuant to Section 3.13, the Owner Trustee shall give all such notices and
communications specified herein to be given to Certificateholders to the
Clearing Agency and shall have no further obligation to the Certificate Owners.

     Section 3.13 Definitive Certificates. Fully registered definitive
Certificates representing a beneficial interest in the Certificates ("Definitive
Certificates") may be issued to the Seller. Definitive Certificates shall be
issued in the form set forth in Exhibit A-1. In addition to the extent (a) the
Administrator advises the Owner Trustee in writing that the Clearing Agency is
no longer willing or able to properly discharge its responsibilities with
respect to the Certificates and the Administrator is unable to locate a
qualified successor, (b) the Administrator at its option advises the Owner
Trustee in writing that it elects to terminate the book-entry

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system through the Clearing Agency, or (c) after the occurrence of an Event of
Default or a Servicer Default, Certificate Owners representing beneficial
interests aggregating at least a majority of the Voting Interests advise the
Clearing Agency in writing that the continuation of a book-entry system through
the Clearing Agency is no longer in the best interest of the Certificate Owners,
then the Clearing Agency shall notify all Certificate Owners and the Owner
Trustee of the occurrence of any such event and of the availability of
Definitive Certificates to Certificate Owners requesting the same. Upon
surrender to the Owner Trustee of the printed Certificate or Certificates
representing the Book-Entry Certificates by the Clearing Agency, accompanied by
registration instructions, the Owner Trustee shall execute and authenticate the
Definitive Certificates in accordance with the instructions of the Clearing
Agency. Neither the Certificate Registrar nor the Owner 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 Certificates, the Owner Trustee shall recognize the Holders of the
Definitive Certificates as Certificateholders.

     Section 3.14 Seller as Certificateholder. The Seller in its individual or
any other capacity may become the owner or pledgee of Certificates and may
otherwise deal with the Owner Trustee or its Affiliates as if it were not the
Seller.

                                   ARTICLE IV
                            ACTIONS BY OWNER TRUSTEE

     Section 4.1 Prior Notice to Certificateholders with Respect to Certain
Matters. The Owner Trustee shall not take action with respect to the following
matters, unless (i) the Owner Trustee shall have notified the Certificateholders
in writing of the proposed action at least thirty (30) days and not more than
forty-five (45) days before the taking of such action, and (ii) the
Certificateholders 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 claim or lawsuit by the Trust (other
than an action to collect on a Receivable or an action by the Indenture Trustee
pursuant to the Indenture) and the compromise of any action, claim or lawsuit
brought by or against the Trust (other than an action to collect on a Receivable
or an action by the Indenture Trustee pursuant to the Indenture);

               (b) the election by the Trust to file an amendment to the
Certificate of Trust, a conformed copy of which is attached hereto as Exhibit B;

               (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 the Certificateholders;

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

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<PAGE>

               (f) the appointment pursuant to the Indenture of a successor Note
Registrar, 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, 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 shall not have the power, except upon the written direction of
the Certificateholders, to remove the Administrator under the Administration
Agreement pursuant to Section 10 thereof, appoint a successor Administrator
pursuant to Section 10 of the Administration Agreement, remove the Servicer
under the Trust Sale and Servicing Agreement pursuant to Section 7.02 thereof or
except as expressly provided in the Basic Documents, sell the Receivables or any
interest therein after the termination of the Indenture. The Owner Trustee shall
take the actions referred to in the preceding sentence only upon written
instructions signed by the Certificateholders.

     Section 4.3 Action by Certificateholders with Respect to Bankruptcy.
Notwithstanding any prior termination of this Agreement, the Owner Trustee shall
not have the power to commence a voluntary proceeding in bankruptcy relating to
the Trust without the unanimous prior approval of all Certificateholders
(including the Seller) and the delivery to the Owner Trustee by each such
Certificateholder of a certificate certifying that such Certificateholder
reasonably believes that the Trust is insolvent; provided, however, that under
no circumstances shall the Owner Trustee commence or join in commencing any such
proceeding prior to the date that is one year and one day after the termination
of the Trust.

     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, including Section 2.3 of
this Agreement, or any of the Basic Documents, nor shall the Owner Trustee be
obligated to follow any such direction, if given. The Certificateholders shall
not and shall not direct the Owner Trustee to take action that would violate the
provisions of Section 6.1 and, if given, the Owner Trustee shall not be
obligated to follow any such direction.

     Section 4.5 Majority Control. Except as expressly provided herein, any
action that may be taken or consent that may be given or withheld by the
Certificateholders under this Agreement shall be effective if such action is
taken or such consent is given or withheld by the Holders of Certificates
evidencing not less than a majority of the Voting Interests as of the close of
the preceding Distribution Date. Except as expressly provided herein, any
written notice, instruction, direction or other document of the
Certificateholders delivered pursuant to this Agreement shall be effective if
signed by Holders of Certificates evidencing not less than a majority of the
Voting Interests 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.

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               (a) Except as otherwise provided in Section 5.2, the Servicer,
for the benefit of the Certificateholders, shall establish and maintain in the
name of the Trust an Eligible Deposit Account known as the Capital Auto
Receivables Asset Trust 2006-1 Certificate Distribution Account (the
"Certificate Distribution Account"), bearing an additional designation clearly
indicating that the funds deposited therein are held for the benefit of the
Certificateholders.

               (b) The Trust shall possess all right, title and interest in and
to all funds on deposit from time to time in the Certificate Distribution
Account and in all proceeds thereof. Except as otherwise provided herein, in the
Indenture or in the Trust Sale and Servicing Agreement, the Certificate
Distribution Account shall be under the sole dominion and control of the Owner
Trustee for the benefit of the Certificateholders. If, at any time, the
Certificate Distribution Account ceases to be an Eligible Deposit Account, the
Owner Trustee (or the Servicer on behalf of the Owner Trustee, if the
Certificate Distribution Account is not then held by the Owner Trustee or an
Affiliate thereof) shall within ten (10) Business Days (or such longer period,
not to exceed thirty (30) calendar days, as to which each Rating Agency may
consent) establish a new Certificate Distribution Account as an Eligible Deposit
Account and shall transfer any cash and/or any investments to such new
Certificate Distribution Account.

     Section 5.2 Application of Trust Funds.

               (a) On each Distribution Date, the Owner Trustee shall distribute
to the Certificateholders, on a pro rata basis, amounts equal to the amounts
deposited in the Certificate Distribution Account pursuant to Section 4.06 and
Section 4.07 of the Trust Sale and Servicing Agreement on or prior to such
Distribution Date. Notwithstanding the foregoing or anything else to the
contrary in this Agreement or the other Basic Documents, if and for so long as
Certificates representing in the aggregate a 100% beneficial interest in the
Trust are held by the Seller, (i) no Certificate Distribution Account shall be
required to be established or maintained and (ii) all distributions and payments
on the Certificates (including the final distribution as contemplated by Section
7.1(c) hereof) required hereunder or under the Trust Sale and Servicing
Agreement shall be made directly to the Seller by the Indenture Trustee (whether
or not the Trust Sale and Servicing Agreement otherwise contemplates deposit
into the Certificate Distribution Account) and the Owner Trustee shall have no
duty or liability to see to such distribution.

               (b) On each Distribution Date, the Owner Trustee shall send to
each Certificateholder the statement provided to the Owner Trustee by the
Servicer pursuant to Section 4.09(a) of the Trust Sale and Servicing Agreement
on such Distribution Date; provided that no such statement shall be required to
be sent by the Owner Trustee if and for so long as the Seller is the sole
Certificateholder.

               (c) If 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 the Certificateholder in accordance with this Section
5.2; provided that the Owner Trustee shall not have an obligation to withhold
any such amount if and for so long as the Seller is the sole Certificateholder.
The Owner Trustee is hereby authorized and directed to retain from amounts
otherwise distributable to the Certificateholders sufficient funds for the
payment of any tax that is legally owed by the Trust (but such authorization
shall not prevent the Owner Trustee from

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<PAGE>

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 Section
5.2(c). If 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.

               (d) If the Indenture Trustee holds escheated funds for payment to
the Trust pursuant to Section 3.3(e) of the Indenture, the Owner Trustee shall,
upon notice from the Indenture Trustee that such funds exist, submit on behalf
of the Trust an Issuer Order to the Indenture Trustee pursuant to Section 3.3(e)
of the Indenture instructing the Indenture Trustee to pay such funds to or at
the order of the Seller.

     Section 5.3 Method of Payment. Subject to Section 7.1(c), distributions
required to be made to Certificateholders on any Distribution Date shall be made
to each Certificateholder of record on the related Record Date (i) by wire
transfer, in immediately available funds, to the account of such Holder at a
bank or other entity having appropriate facilities therefore, if such
Certificateholder shall have provided to the Certificate Registrar appropriate
written instructions at least five (5) Business Days prior to such Record Date
or if not, by check mailed to such Certificateholder at the address of such
Certificateholder appearing in the Certificate Register.

     Section 5.4 Accounting and Reports to the Certificateholders, the Internal
Revenue Service and Others. The Owner Trustee shall maintain (or cause to be
maintained) the books of the Trust on a calendar year basis on the accrual
method of accounting, deliver to each Certificateholder, as may be required by
the Code and applicable Treasury Regulations or otherwise, such information as
may be required to enable each Certificateholder to prepare its federal income
tax return, file such tax returns relating to the Trust 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 an entity described in clause (a) of Section 2.11
for federal income tax purposes, cause such tax returns to be signed in the
manner required by law and 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. In the event that the Internal Revenue
Service were to contend successfully that the Trust is not a disregarded entity
but is rather a partnership for federal income tax purposes, the Trust shall
allocate items of income, gain, deduction and loss to the partners of the Trust
in accordance with their economic interests in the Trust. With respect to
interest expense of the Trust, the Trust shall allocate to the
Certificateholders their share of the entire amount of such interest expense.

     Section 5.5 Signature on Returns; Other Tax Matters. The Owner Trustee
shall sign on behalf of the Trust any and all tax returns of the Trust, unless
applicable law requires a Certificateholder to sign such documents, in which
case such documents shall be signed by the

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Seller. To the extent one may be required, the Seller shall be the "tax matters
partner" of the Trust pursuant to the Code.

                                   ARTICLE VI
                                THE OWNER TRUSTEE

     Section 6.1 Duties of Owner Trustee.

               (a) The Owner Trustee undertakes to perform such duties, and only
such duties, as are specifically set forth in this Agreement and the other Basic
Documents, including the administration of the Trust in the interest of the
Certificateholders, subject to the Basic Documents and in accordance with the
provisions of this Agreement. No implied covenants or obligations shall be read
into this Agreement.

               (b) Notwithstanding the foregoing, the Owner Trustee shall be
deemed to have discharged its duties and responsibilities hereunder and under
the Basic Documents to the extent the Administrator has agreed in the
Administration Agreement to perform any act or to discharge any duty of the
Owner Trustee hereunder or under any Basic Document, and the Owner Trustee shall
not be liable for the default or failure of the Administrator to carry out its
obligations under the Administration Agreement.

               (c) In the absence of bad faith on its part, the Owner Trustee
may conclusively rely upon certificates or opinions furnished to the Owner
Trustee and conforming to the requirements of this Agreement in determining the
truth of the statements and the correctness of the opinions contained therein;
provided, however, that the Owner Trustee shall have examined such certificates
or opinions so as to determine compliance of the same with the requirements of
this Agreement.

               (d) The Owner 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 Section 6.1(d) shall not limit the effect of
Section 6.1(a) or 6.1(b);

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

                    (iii) the Owner 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 4.1, 4.2 or 6.4.

               (e) 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 or the Trust 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.

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<PAGE>

               (f) The Owner Trustee shall not take any action that (i) is
inconsistent with the purposes of the Trust set forth in Section 2.3 or (ii)
would, to the actual knowledge of a Responsible Officer of the Owner Trustee,
result in the Trust's becoming taxable as a corporation for federal income tax
purposes. The Certificateholders shall not direct the Owner Trustee to take
action that would violate the provisions of this Section 6.1.

     Section 6.2 Rights of Owner Trustee. The Owner Trustee is authorized and
directed to execute and deliver the Basic Documents 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, in such form as the Seller shall approve as
evidenced conclusively by the Owner Trustee's execution thereof. In addition to
the foregoing, the Owner Trustee is authorized, but shall not be obligated, 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 as the
Administrator recommends and directs in writing with respect to the Basic
Documents.

     Section 6.3 Acceptance of Trusts and Duties. Except as otherwise provided
in this Article VI, in accepting the trusts hereby created, Deutsche Bank Trust
Company Delaware acts solely as Owner Trustee hereunder and not in its
individual capacity and all Persons having any claim against the Owner Trustee
by reason of the transactions contemplated by this Agreement or any Basic
Document shall look only to the Owner Trust Estate for payment or satisfaction
thereof. The Owner Trustee accepts the trusts hereby created and agrees to
perform its duties hereunder with respect to such trusts but only upon the terms
of this Agreement. The Owner Trustee also agrees to disburse all monies actually
received by it constituting part of the Owner Trust Estate upon the terms of the
Basic Documents and this Agreement. The Owner Trustee shall not be liable or
accountable hereunder or under any Basic Document under any circumstances,
except for its own negligent action, its own negligent failure to act or its own
willful misconduct or in the case of the inaccuracy of any representation or
warranty contained in Section 6.6 and expressly made by the Owner Trustee. In
particular, but not by way of limitation (and subject to the exceptions set
forth in the preceding sentence):

               (a) the Owner Trustee 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 to 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 of any
intervening assignment; the completeness of any Receivable; the performance or
enforcement of any Receivable; the compliance by the Seller 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 Administrator, the Trustee or the Servicer or any sub-servicer taken in the
name of the Owner Trustee;

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<PAGE>

               (b) the Owner Trustee shall not be liable with respect to any
action taken or omitted to be taken by it in accordance with the instructions of
the Administrator or any Certificateholder;

               (c) no provision of this Agreement or any Basic Document shall
require the Owner Trustee to expend or risk funds or otherwise incur any
financial liability in the performance of any of its rights or powers hereunder
or under any Basic Document, if the Owner Trustee 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 it;

               (d) under no circumstances shall the Owner Trustee be liable for
indebtedness evidenced by or arising under any of the Basic Documents, including
the principal of and interest on the Notes;

               (e) the Owner Trustee shall not be responsible for or in respect
of and makes no representation as to the validity or sufficiency of any
provision of this Agreement other than as explicitly set forth herein or for the
due execution hereof by the Seller 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 Basic Documents, the Notes, the
Certificates (other than the certificate of authentication on the Certificates)
or of any Receivables or any related documents, and the Owner Trustee 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
Basic Documents;

               (f) the Owner Trustee shall not be liable for the default or
misconduct of the Administrator, the Indenture Trustee, the Seller or the
Servicer under any of the Basic Documents or otherwise and the Owner Trustee
shall have no obligation or liability to perform the obligations of the Trust
under this Agreement or the Basic Documents that are required to be performed by
the Administrator under the Administration Agreement, the Indenture Trustee
under the Indenture or the Servicer under the Pooling and Servicing Agreement or
the Trust Sale and Servicing Agreement; and

               (g) the Owner Trustee shall be under no obligation to exercise
any of the rights or powers vested in it by this Agreement, or to institute,
conduct or defend any litigation under this Agreement or otherwise or in
relation to this Agreement or any Basic Document, at the request, order or
direction of any of the Certificateholders, unless such Certificateholders have
offered to the Owner Trustee security or indemnity satisfactory to it against
the costs, expenses and liabilities that may be incurred by the Owner Trustee
therein or thereby. The right of the Owner Trustee to perform any discretionary
act enumerated in this Agreement or in any Basic Document shall not be construed
as a duty, and the Owner Trustee shall not be answerable for other than its
negligence or willful misconduct in the performance of any such act.

               (h) Notwithstanding anything to the contrary contained herein or
in any other Basic Document, the Owner Trustee shall not be required to execute,
deliver or certify on behalf of the Trust or any other Person any filings,
certificates, affidavits or other instruments required under the Sarbanes-Oxley
Act of 2002. Notwithstanding any Person's right to instruct the Owner Trustee,
neither the Owner Trustee nor any agent, employee, director or officer of the
Owner

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<PAGE>

Trustee shall have any obligation to execute any certificates or other documents
required pursuant to the Sarbanes-Oxley Act of 2002 or the rules and regulations
promulgated pursuant thereto, and the refusal to comply with any such
instructions shall not constitute a default or breach under any Basic Document.
In the event that the Owner Trustee, on behalf of the Trust, does not execute,
deliver or certify any filings, certificates, affidavits or other instruments
required under the Sarbanes-Oxley Act of 2002, an Officer of the Administrator
shall, on behalf of the Trust, execute, deliver or make such certification.

     Section 6.4 Action upon Instruction by Certificateholders.

               (a) Subject to Section 4.4, the Certificateholders may by written
instruction direct the Owner Trustee in the management of the Trust. Such
direction may be exercised at any time by written instruction of the
Certificateholders pursuant to Section 4.5.

               (b) Notwithstanding the foregoing, 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 Basic Document or is
otherwise contrary to law.

               (c) Whenever the Owner Trustee is unable to decide between
alternative courses of action permitted or required by the terms of this
Agreement or any Basic Document, or is unsure as to the application, intent,
interpretation or meaning of any provision of this Agreement or the Basic
Documents, 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 such instruction
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 instructions
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 which is consistent, in its view, with this Agreement or the
Basic Documents, and as it shall deem to be in the best interests of the
Certificateholders, and the Owner Trustee shall have no liability to any Person
for any such action or inaction.

     Section 6.5 Furnishing of Documents. The Owner Trustee shall furnish to the
Certificateholders, promptly upon receipt of a written request therefor,
duplicates or copies of all reports, notices, requests, demands, certificates,
financial statements and any other instruments furnished to the Owner Trustee
under the Basic Documents.

     Section 6.6 Representations and Warranties of Owner Trustee. The Owner
Trustee hereby represents and warrants to the Seller, for the benefit of the
Certificateholders, that:

               (a) It is a banking corporation duly organized, validly existing
and in good standing under the laws of the state of its incorporation. It has
satisfied the eligibility requirements set forth in Section 6.13.

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<PAGE>

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

               (c) The execution, delivery and performance by it of this
Agreement (i) shall not violate any provision of any law or regulation governing
the banking and trust powers of the Owner Trustee or any order, writ, judgment
or decree of any court, arbitrator or governmental authority applicable to the
Owner Trustee or any of its assets, (ii) shall not violate any provision of the
corporate charter or by-laws of the Owner Trustee or (iii) shall not violate any
provision of, or constitute, with or without notice or lapse of time, a default
under, or result in the creation or imposition of any lien on any properties
included in the Trust pursuant to the provisions of any mortgage, indenture,
contract, agreement or other undertaking to which it is a party, which
violation, default or lien could reasonably be expected to have a materially
adverse effect on the Owner Trustee's performance or ability to perform its
duties as Owner Trustee under this Agreement or on the transactions contemplated
in this Agreement.

               (d) This Agreement has been duly executed and delivered by the
Owner Trustee and constitutes the legal, valid and binding agreement of the
Owner Trustee, enforceable in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization, or
other similar laws affecting the enforcement of creditors' rights in general and
by general principles of equity, regardless of whether such enforceability is
considered in a proceeding in equity or at law.

     Section 6.7 Reliance; Advice of Counsel.

               (a) The Owner Trustee 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
and need not investigate any fact or matter in any such document. The Owner
Trustee 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 Owner Trustee 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
Owner Trustee for any action taken or omitted to be taken by it in good faith in
reliance thereon.

               (b) In the exercise or administration of the trusts hereunder and
in the performance of its duties and obligations under this Agreement or the
Basic Documents, the Owner Trustee may act directly or through its agents,
attorneys, custodians or nominees (including the granting of a power of attorney
to officers of Deutsche Bank Trust Company Americas to execute and deliver any
Basic Documents, Certificate, Note or other documents related thereto on behalf
of the Owner Trustee) pursuant to agreements entered into with any of them, and
the Owner Trustee shall not be liable for the conduct or misconduct of such
agents, attorneys, custodians or nominees if such agents, attorneys, custodians
or nominees shall have been selected by the Owner Trustee with reasonable care;
and may consult with counsel,

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<PAGE>

accountants and other skilled professionals to be selected with reasonable care
and employed by it. The Owner Trustee shall not be liable for anything done,
suffered or omitted in good faith by it in accordance with the opinion or advice
of any such counsel, accountants or other such Persons and not contrary to this
Agreement or any Basic Document.

     Section 6.8 Owner Trustee May Own Certificates and Notes. Deutsche Bank
Trust Company Delaware or any successor Owner Trustee in its individual or any
other capacity may become the owner or pledgee of Certificates or Notes and may
deal with the Seller, the Administrator, the Indenture Trustee and the Servicer
in transactions in the same manner as it would have if it were not the Owner
Trustee.

     Section 6.9 Compensation and Indemnity. The Owner Trustee shall receive as
compensation for its services hereunder such fees as have been separately agreed
upon before the date hereof between the Servicer and the Owner Trustee, and the
Owner Trustee, any paying agent, registrar, authenticating agent or co-trustee
shall be entitled to be reimbursed by the Servicer for its other reasonable
expenses hereunder, including the reasonable compensation, expenses and
disbursements of such agents, custodians, nominees, representatives, experts and
external counsel as the Owner Trustee may employ in connection with the exercise
and performance of its rights and its duties hereunder. The Servicer shall
indemnify the Owner Trustee, any paying agent, registrar, authenticating agent
or co-trustee and its successors, assigns, agents and servants in accordance
with the provisions of Section 6.01 of the Trust Sale and Servicing Agreement.
The indemnities contained in this Section 6.9 shall survive the resignation or
removal of the Owner Trustee or the termination of this Agreement. Any amounts
paid to the Owner Trustee pursuant to this Article VI shall be deemed not to be
a part of the Owner Trust Estate immediately after such payment.

     Section 6.10 Replacement of Owner Trustee.

               (a) The Owner Trustee may give notice of its intent to resign and
be discharged from the trusts hereby created by giving notice thereof to the
Administrator provided that no such resignation shall become effective, and the
Owner Trustee shall not resign, prior to the time set forth in Section 6.10(c).
If no successor Owner Trustee shall have been appointed pursuant to Section
6.10(b) and have accepted such appointment within thirty (30) days after the
giving of such notice, the Owner Trustee giving such notice may petition any
court of competent jurisdiction for the appointment of a successor Owner
Trustee. The Administrator shall remove the Owner Trustee if:

                    (i) the Owner Trustee shall cease to be eligible in
accordance with the provisions of Section 6.13 and shall fail to resign after
written request therefor by the Administrator;

                    (ii) the Owner Trustee shall be adjudged bankrupt or
insolvent;

                    (iii) a receiver or other public officer shall be appointed
or take charge or control of the Owner Trustee or of its property or affairs for
the purpose of rehabilitation, conservation or liquidation; or

                    (iv) the Owner Trustee shall otherwise be incapable of
acting.

                                       19

<PAGE>

               (b) If the Owner Trustee gives notice of its intent to resign or
is removed or if a vacancy exists in the office of Owner Trustee for any reason
the Administrator shall promptly appoint a successor Owner Trustee by written
instrument, in duplicate (one copy of which instrument shall be delivered to the
outgoing Owner Trustee so removed and one copy to the successor Owner Trustee)
and shall pay all fees owed to the outgoing Owner Trustee.

               (c) Any resignation or removal of the Owner Trustee and
appointment of a successor Owner Trustee pursuant to any of the provisions of
this Section 6.10 shall not become effective, and no such resignation shall be
deemed to have occurred, until a written acceptance of appointment is delivered
by the successor Owner Trustee to the outgoing Owner Trustee and the
Administrator and all fees and expenses due to the outgoing Owner Trustee are
paid. Costs associated with the resignation of the Owner Trustee and the
appointment of a successor Owner Trustee will be borne by the Servicer. Any
successor Owner Trustee appointed pursuant to this Section 6.10 shall be
eligible to act in such capacity in accordance with Section 6.13 and, following
compliance with the preceding sentence, 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. The Administrator
shall provide notice of such resignation or removal of the Owner Trustee to each
of the Rating Agencies.

               (d) The predecessor Owner Trustee shall upon payment of its fees
and expenses deliver to the successor Owner Trustee all documents and statements
and monies held by it under this Agreement. The Administrator and the
predecessor Owner Trustee shall execute and deliver such instruments and do such
other things as may reasonably be required for fully and certainly vesting and
confirming in the successor Owner Trustee all such rights, powers, duties and
obligations.

               (e) Upon acceptance of appointment by a successor Owner Trustee
pursuant to this Section 6.10, the Administrator shall mail notice of the
successor of such Owner Trustee to all Certificateholders, the Indenture
Trustee, the Noteholders and the Rating Agencies.

     Section 6.11 Merger or Consolidation of Owner Trustee. Any Person into
which the Owner Trustee may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Owner Trustee shall be a party, or any Person
succeeding to all or substantially all of the corporate trust business of the
Owner Trustee, shall be the successor of the Owner Trustee hereunder, provided
such Person shall be eligible pursuant to Section 6.13, and without the
execution or filing of any instrument or any further act on the part of any of
the parties hereto; provided, however, that the Owner Trustee shall mail notice
of such merger or consolidation to the Rating Agencies.

     Section 6.12 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 requirement 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,
at the expense of the Servicer, have the power and shall, at the expense of the
Servicer, 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 as

                                       20

<PAGE>

separate trustee or trustees, of all or any part of the Owner Trust Estate, and
to vest in such Person (in the name of the Trust and not in such Person's name
for the Trust, except to the extent otherwise required by, and in accordance
with, Section 2.8), in such capacity, such title to the Trust, or any part
thereof, and, subject to the other provisions of this Section 6.12, 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 6.13 and no notice of the appointment of any co-trustee or separate
trustee shall be required pursuant to Section 6.10.

               (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:

                    (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. 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.

               (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

                                       21

<PAGE>

Owner Trustee, to the extent permitted by law, without the appointment of a new
or successor trustee.

     Section 6.13 Eligibility Requirements for Owner Trustee. The Owner Trustee
shall at all times satisfy the requirement of Section 26(a)(1) of the Investment
Company Act. The Owner Trustee shall at all times: (a) be a corporation
satisfying the provisions of Section 3807(a) of the Statutory Trust Act; (b) be
authorized to exercise corporate trust powers; (c) have a combined capital and
surplus of at least $50,000,000 and be subject to supervision or examination by
federal or state authorities; and (d) have (or have a parent which has) a
long-term unsecured debt rating of at least BBB- by Standard & Poor's Ratings
Services and at least Baa3 by Moody's Investors Service, Inc. 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 6.13, 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. If at any time the
Owner Trustee shall cease to be eligible in accordance with the provisions of
this Section 6.13, the Owner Trustee shall resign immediately in the manner and
with the effect specified in Section 6.10.

                                  ARTICLE VII
                         TERMINATION OF TRUST AGREEMENT

     Section 7.1 Termination of Trust Agreement.

               (a) This Agreement (other than Section 6.9) and the Trust shall
terminate in accordance with Section 3808 of the Statutory Trust Act and be of
no further force or effect on the final distribution by the Owner Trustee of all
monies or other property or proceeds of the Owner Trust Estate in accordance
with the terms of the Indenture, the Trust Sale and Servicing Agreement
(including the exercise by the Servicer of its option to purchase the
Receivables pursuant to Section 8.01(a) of the Trust Sale and Servicing
Agreement), the Interest Rate Swaps and Article V. The bankruptcy, liquidation,
dissolution, death or incapacity of any Certificateholder shall not (x) operate
to terminate this Agreement or the Trust, (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 the Owner Trust Estate or (z) otherwise affect the rights, obligations
and liabilities of the parties hereto.

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

               (c) Subject to Section 5.2(a), notice of any termination of the
Trust, specifying the Distribution Date upon which the Certificateholders shall
surrender their Certificates to the 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 given pursuant to Section 8.01(c) of the
Trust Sale and Servicing Agreement, 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 Paying Agent
therein designated; (ii) the amount of any such final payment; and (iii) that
the Record Date otherwise applicable to such Distribution Date is not

                                       22

<PAGE>

applicable, payments being made only upon presentation and surrender of the
Certificates at the office of the Paying Agent therein specified. The Owner
Trustee shall give such notice to the Certificate Registrar (if other than the
Owner Trustee) and the Paying Agent at the time such notice is given to
Certificateholders. Upon presentation and surrender of the Certificates, the
Paying Agent shall cause to be distributed to Certificateholders amounts
distributable on such Distribution Date pursuant to Section 5.2.

               (d) If all of the Certificateholders shall not surrender their
Certificates for cancellation within six months after the date specified in the
written notice referred to in Section 7.1(c), 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 laws with respect to
escheat of funds, any funds remaining in the Trust after exhaustion of such
remedies in the preceding sentence shall be deemed property of the Seller and
distributed by the Owner Trustee to the Seller, and the Owner Trustee shall have
no further liability to the Certificateholders with respect thereto.

               (e) Upon the winding up and termination of the Trust in
accordance with Section 3808 of the Statutory Trust Act and this Section, the
Owner Trustee shall cause the Certificate of Trust to be canceled by filing a
certificate of cancellation with the Secretary of State in accordance with the
provisions of Section 3810 of the Statutory Trust Act.

                                  ARTICLE VIII
                                   AMENDMENTS

     Section 8.1 Amendments Without Consent of Certificateholders or
Noteholders. This Agreement may be amended by the Seller and the Owner Trustee
without the consent of any of the Noteholders or any other Persons who may be
Certificateholders (but with prior notice to each of the Rating Agencies), to
(i) cure any ambiguity, (ii) correct or supplement any provision in this
Agreement that may be defective or inconsistent with any other provision in this
Agreement or any other Basic Document, (iii) add or supplement any credit
enhancement for the benefit of the Noteholders or Certificateholders (provided
that if any such addition shall affect any class of Noteholders or
Certificateholders differently than any other class of Noteholders or
Certificateholders, then such addition shall not, as evidenced by an Opinion of
Counsel, adversely affect in any material respect the interests of any class of
the Noteholders or Certificateholders), (iv) add to the covenants, restrictions
or obligations of the Seller or the Owner Trustee, (v) evidence and provide for
the acceptance of the appointment of a successor trustee with respect to the
Owner Trust Estate and add to or change any provisions as shall be necessary to
facilitate the administration of the trusts hereunder by more than one trustee
pursuant to Article VI, and (vi) add, change or eliminate any other provision of
this Agreement in any manner that shall not, as evidenced by an Opinion of
Counsel, adversely affect in any material respect the interests of the
Noteholders or Unaffiliated Certificateholders.

                                       23

<PAGE>

     Section 8.2 Amendments With Consent of Certificateholders and Noteholders.
This Agreement may be amended from time to time by the Seller and the Owner
Trustee with the consent of Noteholders whose Notes evidence not less than a
majority of the Outstanding Amount of the Notes as of the close of the preceding
Distribution Date and, if any Person other than the Seller or an Affiliate of
the Seller holds any Certificates, the consent of Certificateholders whose
Certificates evidence not less than a majority of the Voting Interest as of the
close of the preceding Distribution Date (which consent, whether given pursuant
to this Section 8.2 or pursuant to any other provision of this Agreement, shall
be conclusive and binding on such Person and on all future holders of such Notes
or Certificates and of any Notes or Certificates issued upon the transfer
thereof or in exchange thereof or in lieu thereof whether or not notation of
such consent is made upon the Notes or Certificates) 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 (a)
increase or reduce in any manner the amount of, or accelerate or delay the
timing of, collections of payments on Receivables or distributions that shall be
required to be made on any Note or Certificate, the Pass Through Rate or the
Specified Reserve Account Balance or (b) reduce the aforesaid percentage
required to consent to any such amendment, without the consent of the holders of
all Notes and all the Voting Interests with respect to Certificates then
outstanding. The Owner Trustee shall furnish notice to each of the Rating
Agencies prior to obtaining consent to any proposed amendment under this Section
8.2.

     Section 8.3 Form of Amendments.

               (a) Promptly after the execution of any amendment, supplement or
consent pursuant to Section 8.1 or 8.2, the Owner Trustee shall furnish written
notification of the substance of such amendment or consent to each Unaffiliated
Certificateholder and the Indenture Trustee.

               (b) It shall not be necessary for the consent of
Certificateholders, the Noteholders or the Indenture Trustee pursuant to Section
8.2 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 Unaffiliated
Certificateholders provided for in this Agreement or in any other Basic
Document) and of evidencing the authorization of the execution thereof by
Unaffiliated Certificateholders shall be subject to such reasonable requirements
as the Owner Trustee may prescribe.

               (c) 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.

               (d) Prior to the execution of any amendment to this Agreement or
the Certificate of Trust, the Owner Trustee shall be entitled to receive and
conclusively 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.

                                       24

<PAGE>

                                   ARTICLE IX
                                  MISCELLANEOUS

     Section 9.1 No Legal Title to Owner Trust Estate. 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 undivided ownership interest therein only in accordance with Articles V
and VII. No transfer, by operation of law or otherwise, of any right, title, and
interest of the Certificateholders to and in their ownership 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 9.2 Limitations on Rights of Others. Except for Section 9.13, the
provisions of this Agreement are solely for the benefit of the Owner Trustee,
the Seller, the Certificateholders, the Administrator and, to the extent
expressly provided herein, the Indenture Trustee and the Noteholders, and
nothing in this Agreement, whether express or implied, shall be construed to
give to any other Person any legal or equitable right, remedy or claim in the
Owner Trust Estate or under or in respect of this Agreement or any covenants,
conditions or provisions contained herein.

     Section 9.3 Derivative Actions. Any provision contained herein to the
contrary notwithstanding, the right of any Certificateholder to bring a
derivative action in the right of the Trust is hereby made expressly subject to
the following limitations and requirements:

               (a) such Certificate Owner must meet all requirements set forth
in the Statutory Trust Act; and

               (b) no Certificateholder may bring a derivative action in the
right of the Trust without the prior written consent of Certificate Holders
owning a beneficial interest in the Certificates representing 50% of the then
outstanding interest in the Certificates.

     Section 9.4 Notices. All demands, notices and communications upon or to the
Seller, the Servicer, the Administrator, the Indenture Trustee, the Owner
Trustee or the Rating Agencies under this Agreement shall be delivered as
specified in Appendix B to the Trust Sale and Servicing Agreement.

     Section 9.5 Severability. If any one or more of the covenants, agreements,
provisions or terms of this Agreement shall be for any reason whatsoever held
invalid, then such covenants, agreements, provisions or terms shall be deemed
severable from the remaining covenants, agreements, provisions or terms of this
Agreement and shall in no way affect the validity or enforceability of the other
provisions of this Agreement or of the Certificates or the rights of the holders
thereof.

     Section 9.6 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 one
and the same instrument.

     Section 9.7 Successors and Assigns. All covenants and agreements contained
herein shall be binding upon, and inure to the benefit of, the Seller, the Owner
Trustee and each

                                       25

<PAGE>

Certificateholder and their respective 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.

     Section 9.8 No Petition. The Owner Trustee by entering this Trust Agreement
and each Certificateholder or Certificate Owner, by accepting a Certificate (or
interest therein) issued hereunder, hereby covenant and agree that they shall
not (nor shall they join with or solicit another person to), prior to the day
that is one year and one day after the termination of the Trust and of each
other trust heretofore formed by the Seller, acquiesce, petition or otherwise
invoke or cause the Seller or the Trust to invoke in any court or government
authority for the purpose of commencing or sustaining a case against the Seller
or the Trust under any federal or state bankruptcy, insolvency or similar law or
appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or
other similar official of the Seller or the Trust or any substantial part of its
property, or ordering the winding up or liquidation of the affairs of the Seller
or the Trust.

     Section 9.9 No Recourse. Each Certificateholder by accepting a Certificate
(or any interest therein) acknowledges that such Person's Certificate (or
interest therein) represents beneficial interests in the Trust only and does not
represent interests in or obligations of the Seller, the Servicer, the
Administrator, the Owner Trustee, the Indenture Trustee or any Affiliate thereof
and no recourse, either directly or indirectly, 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 Basic Documents. Except as expressly provided
in the Basic Documents, none of the Seller, the Servicer or the Owner Trustee in
their respective individual capacities, or any of their respective partners,
beneficiaries, agents, officers, directors, employees or successors or assigns,
shall be personally liable for, or shall recourse be had to any of them for the
distribution of any amount with respect to the Certificates or the Trust's
performance of, or omission to perform, any obligations or indemnifications
contained in the Certificates, this Agreement or the Basic Documents, it being
expressly understood that such Certificateholder obligations have been made
solely by the Trust. Each Certificateholder by the acceptance of a Certificate
(or beneficial interest therein) agrees except as expressly provided in the
Basic Documents, in the event of nonpayment of any amounts with respect to the
Certificates, it shall have no claim against any of the foregoing Persons for
any deficiency, loss or claim therefrom. In the event that any of the foregoing
covenants of each Certificateholder and Certificate Owner is prohibited by, or
declared illegal or otherwise unenforceable against any such Certificateholder
or Certificate Owner under applicable law by any court or other authority of
competent jurisdiction, and, as a result, a Certificateholder or Certificate
Owner is deemed to have an interest in any assets of the Seller or any Affiliate
of the Seller other than the Trust, each Certificateholder and Certificate Owner
agrees that (i) its claim against any such other assets shall be, and hereby is,
subject and subordinate in all respects to the rights of other Persons to whom
rights in the other assets have been expressly granted, including to the payment
in full of all amounts owing to such entitled Persons, and (ii) the covenant set
forth in the preceding clause (i) constitutes a "subordination agreement" within
the meaning of, and subject to, Section 510(a) of the Bankruptcy Code.

     Section 9.10 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.

                                       26

<PAGE>

     Section 9.11 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF DELAWARE, WITHOUT
REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS THEREOF OR OF ANY OTHER
JURISDICTION, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER
SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     Section 9.12 Indemnification by and Reimbursement of the Servicer. The
Owner Trustee acknowledges and agrees to reimburse (i) the Servicer and its
directors, officers, employees and agents in accordance with Section 6.03(b) of
the Trust Sale and Servicing Agreement and (ii) the Seller and its directors,
officers, employees and agents in accordance with Section 3.04 of the Trust Sale
and Servicing Agreement. The Owner Trustee further acknowledges and accepts the
conditions and limitations with respect to the Servicer's obligation to
indemnify, defend and hold the Owner Trustee harmless as set forth in Section
6.01(a)(iv) of the Trust Sale and Servicing Agreement.

     Section 9.13 Effect of Amendment and Restatement. It is the intent of the
parties hereto that this Trust Agreement shall, as of February 16, 2006, replace
in its entirety the Original Trust Agreement; provided, however, that with
respect to the period of time from January 26, 2006 through February 16, 2006,
the rights and obligations of the parties shall be governed by the Original
Trust Agreement; provided further, that the amendment and restatement of the
Original Trust Agreement shall not affect any of the grants, conveyances or
transfers contemplated by the Original Trust Agreement to have occurred prior to
the date hereof.

     Section 9.14 Information to be Provided by the Owner Trustee.

               (a) The Owner Trustee agrees to cooperate in good faith with any
reasonable request by the Seller for information regarding the Owner Trustee
which is required in order to enable the Seller to comply with the provisions of
Items 1117 and 1119 of Regulation AB as it relates to the Owner Trustee or to
the Owner Trustee's obligations under this Agreement.

               (b) Except to the extent disclosed by the Owner Trustee in
subsection (c) or (d) below, the Owner Trustee shall be deemed to have
represented to the Seller on the first day of each Monthly Period with respect
to the prior Monthly Period that to the best of its knowledge there were no
legal or governmental proceedings pending (or known to be contemplated) against
Deutsche Bank Trust Company Delaware or any property of Deutsche Bank Trust
Company Delaware that would be material to any Noteholder or, to the extent that
the Certificates are registered under the Securities Act for public sale, any
holder of such Certificates.

               (c) The Owner Trustee shall, as promptly as practicable following
notice to or discovery by the Owner Trustee of any changes to any information
regarding the Owner Trustee as is required for the purpose of compliance with
Item 1117 of Regulation AB, provide to the Seller, in writing, such updated
information.

               (d) The Owner Trustee shall deliver to the Seller on or before
March 15 of each year, beginning with March 15, 2007, a report of a
representative of the Owner Trustee with

                                       27

<PAGE>

respect to the immediately preceding calendar year certifying, on behalf of the
Owner Trustee, that except to the extent otherwise disclosed in writing to
Seller, to the best of his or her knowledge there were no legal or governmental
proceedings pending (or known to be contemplated) against Deutsche Bank Trust
Company Delaware or any property of Deutsche Bank Trust Company Delaware that
would be material to any Noteholder or, to the extent that the Certificates are
registered under the Securities Act for public sale, any holder of such
Certificates.

               (e) The Owner Trustee shall deliver to the Seller on or before
March 15 of each year, beginning with March 15, 2007, a report of a
representative of the Owner Trustee with respect to the immediately preceding
calendar year providing to the Seller such information regarding the Owner
Trustee as is required for the purpose of compliance with Item 1119 of
Regulation AB. Such information shall include, at a minimum, a description of
any affiliation between the Owner Trustee and any of the following parties to
this securitization transaction, as such parties are identified to the Owner
Trustee by the Seller in writing in advance of this securitization transaction:

                    (i) the Seller;

                    (ii) GMAC;

                    (iii) the Issuer;

                    (iv) the Servicer;

                    (v) the Indenture Trustee;

                    (vi) the Swap Counterparty; and

                    (vii) any other material transaction party.

In connection with the parties listed in clauses (i) through (vii) above, the
Owner Trustee shall include a description of whether there is, and if so, the
general character of, any business relationship, agreement, arrangement,
transaction or understanding that is entered into outside the ordinary course of
business or is on terms other than would be obtained in an arm's length
transaction with an unrelated third party, apart from this securitization
transaction, that currently exists or that existed during the past two years and
that is material to an investor's understanding of the asset backed securities
issued in this securitization transaction.

                                    * * * * *

                                       28
<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.

                                       DEUTSCHE BANK TRUST COMPANY
                                       DELAWARE, as Owner Trustee

                                       By:      /s/ Elisabeth B. Ferry
                                                --------------------------------
                                       Name:    Elisabeth B. Ferry
                                       Title:   Assistant Vice President

                                       CAPITAL AUTO RECEIVABLES, INC.,
                                       as Seller

                                       By:      /s/ Nancy L. Bugg
                                                --------------------------------
                                       Name:    Nancy L. Bugg
                                       Title:   Vice President

Acknowledged and accepted:

DEUTSCHE BANK TRUST COMPANY
AMERICAS, as Paying Agent

By:      /s/ Eva Aryeetey
         -------------------------------
Name:    Eva Aryeetey
Title:   Assistant Vice President

By:      /s/ Jenna Kaufman
         -------------------------------
Name:    Jenna Kaufman
Title:   Vice President

<PAGE>

                                                                       EXHIBIT A

                               FORM OF CERTIFICATE

NO. R-                                                                    _____%

                       SEE REVERSE FOR CERTAIN DEFINITIONS

         THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED (THE "ACT"), AND THE VARIOUS STATE SECURITIES LAWS. NO
         TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS SUCH TRANSFER IS MADE
         IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE ACT OR
         ANY APPLICABLE STATE SECURITIES LAWS AND IS OTHERWISE IN COMPLIANCE
         WITH THE RESTRICTIONS SET FORTH IN THE TRUST AGREEMENT.

         THIS CERTIFICATE (OR AN INTEREST HEREIN) MAY NOT BE ACQUIRED BY OR FOR
         THE ACCOUNT OF (1) AN "EMPLOYEE BENEFIT PLAN," AS DEFINED IN SECTION
         3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
         ("ERISA"), WHETHER OR NOT SUCH EMPLOYEE BENEFIT PLAN IS SUBJECT TO THE
         PROVISIONS OF TITLE I OF ERISA, (2) A "PLAN," AS DESCRIBED IN SECTION
         4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
         "CODE"), OR (3) ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE PLAN ASSETS
         BY REASON OF INVESTMENT BY AN EMPLOYEE BENEFIT PLAN OR PLAN IN SUCH
         ENTITY OTHER THAN AN "INSURANCE COMPANY GENERAL ACCOUNT," AS DEFINED IN
         PROHIBITED TRANSACTION CLASS EXEMPTION 95-60 ("PTCE 95-60"), WHOSE
         UNDERLYING ASSETS INCLUDE LESS THAN 25% PLAN ASSETS AND FOR WHICH THE
         PURCHASE AND HOLDING OF CERTIFICATES IS ELIGIBLE AND SATISFIES ALL
         CONDITIONS FOR RELIEF UNDER PTCE 95-60. BY ACCEPTING AND HOLDING THIS
         CERTIFICATE, THE HOLDER HEREOF AND ANY RELATED CERTIFICATE OWNER SHALL
         EACH BE DEEMED TO HAVE REPRESENTED AND WARRANTED THAT IT IS NOT A
         BENEFIT PLAN AND, IF REQUESTED TO DO SO BY THE SELLER, SUCH PERSON
         SHALL EXECUTE AND DELIVER TO THE OWNER TRUSTEE AN UNDERTAKING LETTER TO
         SUCH EFFECT IN THE FORM SPECIFIED IN THE TRUST AGREEMENT.

                   CAPITAL AUTO RECEIVABLES ASSET TRUST 2006-1

                            ASSET BACKED CERTIFICATE

         evidencing a fractional undivided interest in the Trust, as defined
         below, the property of which includes a pool of retail installment sale
         contracts and direct

                                      A-1

<PAGE>

         purchase money loans secured by new or used automobiles and light
         trucks and sold to the Trust by Capital Auto Receivables, Inc.

         (This Certificate does not represent an interest in or obligation of
         Capital Auto Receivables, Inc., General Motors Acceptance Corporation
         or General Motors Corporation or any of their respective affiliates,
         except to the extent described in the Basic Documents.)

                  THIS CERTIFIES THAT ____________________ is the registered
owner of a nonassessable, fully-paid fractional undivided interest in Capital
Auto Receivables Asset Trust 2006-1 (the "Trust") formed by Capital Auto
Receivables, Inc., a Delaware corporation.

                  The Trust was created pursuant to a Trust Agreement, dated as
of January 26, 2006 (as amended and supplemented as of February 16, 2006, the
"Trust Agreement"), between the Seller and Deutsche Bank Trust Company Delaware,
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.

                  This Certificate is one of the duly authorized Certificates
designated as Asset Backed Certificates (the "Certificates"). This Certificate
is issued under and is subject to the terms, provisions and conditions of the
Trust Agreement, the terms of which are incorporated herein by reference and
made a part hereof, to which Trust Agreement the holder of this Certificate by
virtue of the acceptance hereof assents and by which such holder is bound.

                  Under the Trust Agreement there shall be distributed on the
15th day of each month, or if such 15th day is not a Business Day, the next
Business Day, commencing on March 15, 2006 (each, a "Distribution Date"), to the
person in whose name this Certificate is registered on the related Record Date,
such amount as is provided in the Basic Documents. The "Record Date," with
respect to any Distribution Date, means the last day of the preceding Monthly
Period.

                  The distributions in respect of this Certificate 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 Trust with respect to this Certificate shall be applied in respect
of this Certificate.

                  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 and to the extent described in
the Trust Sale and Servicing Agreement.

                  It is the intent of the Seller, the Owner Trustee and the
Certificateholders that, for purposes of federal income, state and local income
and franchise taxes, Michigan single business tax and any other taxes imposed
upon, measured by or based upon gross or net income, the Trust shall be treated
as either (A) a division of the Seller, or any other single Person, and
disregarded as a separate entity, if all Certificates are owned solely by the
Seller or by such single Person, or (B) a partnership if the Certificates are
owned by more than one Person. Except as otherwise

                                      A-2

<PAGE>

required by appropriate taxing authorities, the Seller 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 interests in such a disregarded entity or partnership as described
in the previous sentence.

                  This Certificate (or an interest herein) may not be acquired
by or for the account of (1) an employee benefit plan, as defined in Section
3(3) of ERISA, whether or not such employee benefit plan is subject to the
provisions of Title I of ERISA, (2) a plan, as described in Section 4975(e)(1)
of the Code, or (3) any entity whose underlying assets include plan assets by
reason of investment by an employee benefit plan or plan in such entity other
than an insurance company general account, as defined in PTCE 95-60, whose
underlying assets include less than 25% plan assets and for which the purchase
and holding of Certificates is eligible and satisfies all conditions for relief
under PTCE 95-60.

                  Each Certificateholder or Certificate Owner by its acceptance
of a Certificate (or an interest therein) covenants and agrees that such
Certificateholder shall not, prior to the date which is one year and one day
after the termination of the Trust, acquiesce, petition or otherwise invoke or
cause the Seller or the Owner Trustee to invoke the process of any court or
governmental authority for the purpose of commencing or sustaining a case
against the Seller or the Owner Trustee under any federal or state bankruptcy,
insolvency, reorganization or similar law or appointing a receiver, liquidator,
assignee, trustee, custodian, sequestrator or other similar official of the
Seller or the Owner Trustee or any substantial part of its property, or ordering
the winding up or liquidation of the affairs of the Seller or the Owner Trustee.

                  Except as otherwise provided in the Trust Agreement,
distributions on this Certificate shall be made as provided in the Trust
Agreement by the Owner Trustee 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 shall 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 maintained for such purpose by
the Owner Trustee in the Borough of Manhattan, the City of 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 holder hereof to any benefit under the
Trust Agreement or the Trust Sale and Servicing Agreement or be valid for any
purpose.

                  THIS CERTIFICATE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO
THE PRINCIPLES OF CONFLICTS OF LAW THEREOF OR OF ANY OTHER JURISDICTION, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF

                                      A-3

<PAGE>

THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

                                      A-4

<PAGE>

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

Dated: February 16, 2006              CAPITAL AUTO RECEIVABLES ASSET
                                      TRUST 2006-1

                                      DEUTSCHE BANK TRUST COMPANY
                                      DELAWARE, not in its individual capacity
                                      but solely as Owner Trustee

                                      By: /s/ Jenna Kaufman
                                          --------------------------------------
                                      Name:     Jenna Kaufman
                                      Title:   Attorney-In-Fact

                  OWNER TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

<Table>
<Caption>
<S>                                                         <C>
DEUTSCHE BANK TRUST COMPANY                                 DEUTSCHE BANK TRUST COMPANY
DELAWARE, not in its individual capacity but                DELAWARE, not in its individual capacity but
solely as Owner Trustee                                     solely as Owner Trustee

                                                            By:  DEUTSCHE BANK TRUST
                                                                 COMPANY AMERICAS, as
                                                                 Authenticating Agent

By: /s/ Jenna Kaufman                                       By:
    ----------------------------------------                    ----------------------------------------
Name: Jenna Kaufman                                         Name:
Title:   Attorney-In-Fact                                   Title:
</Table>

                                      A-5

<PAGE>

                             REVERSE OF CERTIFICATE

                  The Certificate does not represent an obligation of, or an
interest in, the Seller, the Servicer, General Motors Corporation, the Indenture
Trustee, 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 or in the Trust Agreement or the 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 and
recoveries with respect to the Receivables (and certain other amounts), all as
more specifically set forth herein and in the Basic Documents. A copy of each of
the Basic Documents may be examined during normal business hours at the
principal office of the Seller, and at such other places, if any, designated by
the Seller, by any Certificateholder upon written request. In the event of any
conflict between the terms of this Certificate and the terms of the Basic
Documents, the terms of the Basic Documents shall govern.

                  The Trust Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Seller and the rights of the Certificateholders under the
Trust Agreement at any time by the Seller and the Owner Trustee with the consent
of the Holders of the Notes evidencing not less than a majority of the
Outstanding Amount of the Notes as of the close of the preceding Distribution
Date and the consent of Certificateholders whose Certificates evidence not less
than a majority of the Voting Interests as of the close of the preceding
Distribution Date. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and on all future Holders of this
Certificate and of any Certificate issued upon the 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 circumstances, without the consent of the Holders of any of
the Certificates or the Notes.

                  As provided in the Trust Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registerable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies of the Certificate Registrar maintained
by the Owner Trustee in the City of 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
evidencing the same aggregate interest in the Trust will be issued to the
designated transferee. The initial Certificate Registrar appointed under the
Trust Agreement is Deutsche Bank Trust Company Americas, New York, New York.

                  The Certificate is issuable only as a registered Certificate.
As provided in the Trust Agreement and subject to certain limitations therein
set forth, the Certificate is exchangeable for a new Certificate. No service
charge shall 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

                                      A-6

<PAGE>

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 obligations and responsibilities created by the Trust
Agreement and the Trust created thereby shall terminate in accordance with
Article VII of the Trust Agreement.

                                      A-7

<PAGE>
                                   ASSIGNMENT

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

PLEASE INSERT SOCIAL SECURITY
NUMBER 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 of the
registered owner as it appears upon the face of the within Certificate in every
particular, without alteration, enlargement or any change whatsoever. Such
signature must be guaranteed by a member firm of the New York Stock Exchange or
a commercial bank or trust company.

                                      A-8

<PAGE>

                                                                       EXHIBIT B

                              CERTIFICATE OF TRUST
                 OF CAPITAL AUTO RECEIVABLES ASSET TRUST 2006-1

                  This Certificate of Trust of Capital Auto Receivables Asset
Trust 2006-1 (the "Trust") is being duly executed and filed by the undersigned,
as trustee, to form a statutory trust under the Delaware Statutory Trust Act (12
Del. C. Section 3801 et seq.) (the "Act").

     1.   Name. The name of the statutory trust formed hereby is Capital Auto
Receivables Asset Trust 2006-1.

     2. Delaware Trustee. The name and business address of the trustee of the
Trust in the State of Delaware are Deutsche Bank Trust Company Delaware, E.A.
Delle Donne Corporate Center, Montgomery Building, 1011 Centre Road, Wilmington,
Delaware 19805-1266.

     3. Effective Date. This certificate of trust shall be effective on January
26, 2006.

                  IN WITNESS WHEREOF, the undersigned has executed this
certificate of trust in accordance with Section 3811(a)(1) of the Act.

                                  DEUTSCHE BANK TRUST COMPANY
                                  DELAWARE, not in its individual capacity
                                  but solely as Owner Trustee

                                  By:  /s/ Elisabeth B. Ferry
                                       -----------------------------------------
                                  Name:    Elisabeth B. Ferry
                                  Title:   Assistant Vice President

                                      B-1

<PAGE>

                                                                       EXHIBIT C

                               UNDERTAKING LETTER

Capital Auto Receivables, Inc.
Corporation Trust Center
1209 Orange Street
Wilmington, DE 19801

Deutsche Bank Trust Company Delaware,
as Owner Trustee of Capital Auto Receivables Asset Trust 2006-1
E.A. Delle Donne Corporate Center
Montgomery Building
1011 Centre Road, Suite 200
Wilmington, DE 19805

Ladies and Gentlemen:

                  In connection with our purchase of record or beneficial
ownership of the _____ Asset Backed Certificate (the "Certificate") of Capital
Auto Receivables Asset Trust 2006-1, the undersigned purchaser, record owner or
beneficial owner hereby acknowledges, represents and warrants that such
purchaser, record owner or beneficial owner:

                  (1) is not, and has not acquired the Certificate by or for the
benefit of, (a) 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 the provisions of Title I of ERISA, (b) a "plan," as described in
Section 4975(e)(1) of the Internal Revenue Code of 1986, as amended, or (c) any
entity whose underlying assets include plan assets by reason of investment by an
employee benefit plan or plan in such entity other than an "insurance company
general account," as defined in Prohibited Transaction Class Exemption 95-60,
whose underlying assets include less than 25% plan assets and for which the
purchase and holding of Certificates is eligible and satisfies all conditions
for relief under Prohibited Transaction Class Exemption 95-60; and

                  (2) acknowledges that you and others will rely on our
acknowledgments, representations and warranties made in connection with our
purchase of record or beneficial ownership of the Certificate and agrees to
notify you promptly in writing if any of our representations or warranties
herein cease to be accurate and complete.

                                            ------------------------------------
                                            Name of Certificate Owner

                                            By:
                                                --------------------------------

                                            Name:
                                                  ------------------------------
                                            Title:
                                                   -----------------------------
                                            Date:
                                                  ------------------------------

                                      C-1exv4w3

 

EXECUTION COPY

Exhibit 4.3

 

POOLING AND SERVICING AGREEMENT

BETWEEN

CAPITAL AUTO RECEIVABLES, INC.

AND

GENERAL MOTORS ACCEPTANCE CORPORATION

DATED AS OF FEBRUARY 16, 2006

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	ARTICLE I DEFINITIONS	 	 	1	 
	 
	 	 	 	 	 	 
	SECTION 1.01
	 	Definitions.	 	 	1	 
	SECTION 1.02
	 	Owner of a Receivable.	 	 	2	 
	 
	 	 	 	 	 	 
	ARTICLE II PURCHASE AND SALE OF RECEIVABLES	 	 	2	 
	 
	 	 	 	 	 	 
	SECTION 2.01
	 	Purchase and Sale of Receivables.	 	 	2	 
	SECTION 2.02
	 	Receivables Purchase Price.	 	 	3	 
	SECTION 2.03
	 	The Closing.	 	 	3	 
	SECTION 2.04
	 	Custody of Receivable Files.	 	 	3	 
	 
	 	 	 	 	 	 
	ARTICLE III ADMINISTRATION AND SERVICING OF RECEIVABLES	 	 	4	 
	 
	 	 	 	 	 	 
	SECTION 3.01
	 	Duties of the Servicer.	 	 	4	 
	SECTION 3.02
	 	Collection of Receivable Payments.	 	 	5	 
	SECTION 3.03
	 	Rebates on Full Prepayments on Scheduled Interest Receivables.	 	 	5	 
	SECTION 3.04
	 	Realization Upon Liquidating Receivables.	 	 	5	 
	SECTION 3.05
	 	Maintenance of Insurance Policies.	 	 	6	 
	SECTION 3.06
	 	Maintenance of Security Interests in Vehicles.	 	 	6	 
	SECTION 3.07
	 	Covenants, Representations and Warranties of the Servicer.	 	 	6	 
	SECTION 3.08
	 	Purchase of Receivables Upon Breach of Covenant.	 	 	8	 
	SECTION 3.09
	 	Basic Servicing Fee; Payment of Certain Expenses by Servicer.	 	 	8	 
	SECTION 3.10
	 	Servicer’s Accounting.	 	 	8	 
	SECTION 3.11
	 	Application of Collections.	 	 	9	 
	 
	 	 	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES	 	 	10	 
	 
	 	 	 	 	 	 
	SECTION 4.01
	 	Representations and Warranties as to the Receivables.	 	 	10	 
	SECTION 4.02
	 	Additional Representations and Warranties of GMAC.	 	 	13	 
	SECTION 4.03
	 	Representations and Warranties of CARI.	 	 	14	 
	 
	 	 	 	 	 	 
	ARTICLE V ADDITIONAL AGREEMENTS	 	 	15	 
	 
	 	 	 	 	 	 
	SECTION 5.01
	 	Conflicts With Further Transfer and Servicing Agreements.	 	 	15	 
	SECTION 5.02
	 	Protection of Title.	 	 	15	 
	SECTION 5.03
	 	Other Liens or Interests.	 	 	15	 
	SECTION 5.04
	 	Repurchase Events.	 	 	16	 
	SECTION 5.05
	 	Indemnification.	 	 	16	 
	SECTION 5.06
	 	Further Assignments.	 	 	16	 
	SECTION 5.07
	 	Pre-Closing Collections.	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE VI CONDITIONS	 	 	17	 
	 
	 	 	 	 	 	 
	SECTION 6.01
	 	Conditions to Obligation of CARI.	 	 	17	 
	SECTION 6.02
	 	Conditions to Obligation of GMAC.	 	 	17	 
	 
	 	 	 	 	 	 
	ARTICLE VII MISCELLANEOUS PROVISIONS	 	 	18	 
	 
	 	 	 	 	 	 
	SECTION 7.01
	 	Amendment.	 	 	18	 
	SECTION 7.02
	 	Survival.	 	 	18	 
	SECTION 7.03
	 	Notices.	 	 	18	 
	SECTION 7.04
	 	Governing Law.	 	 	18	 
	SECTION 7.05
	 	Waivers.	 	 	18	 
	SECTION 7.06
	 	Costs and Expenses.	 	 	18	 
	SECTION 7.07
	 	Confidential Information.	 	 	18	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 7.08
	 	Headings.	 	 	18	 
	SECTION 7.09
	 	Counterparts.	 	 	19	 
	SECTION 7.10
	 	No Petition Covenant.	 	 	19	 
	SECTION 7.11
	 	Limitations on Rights of Others.	 	 	19	 
	 
	 	 	 	 	 	 
	EXHIBIT A
	 	Form of First Step Receivables Assignment	 	 	 	 
	 
	 	 	 	 	 	 
	SCHEDULE A
	 	Schedule of Receivables	 	 	 	 
	 
	 	 	 	 	 	 
	APPENDIX A
	 	Definitions, Rules of Construction and Notices	 	 	 	 
	 
	 	 	 	 	 	 
	APPENDIX B
	 	Additional Representations and Warranties	 	 	 	 

ii

 

     THIS POOLING AND SERVICING AGREEMENT, dated as of February 16, 2006, between CAPITAL AUTO
RECEIVABLES, INC., a Delaware corporation (“CARI”), and GENERAL MOTORS ACCEPTANCE
CORPORATION, a Delaware corporation (herein referred to as “GMAC” in its capacity as seller
of the Receivables and as the “Servicer” in its capacity as servicer of the Receivables).

     WHEREAS, CARI desires to purchase on the date hereof a portfolio of automobile and light truck
retail instalment sale contracts, direct purchase money loans and related rights owned by GMAC;

     WHEREAS, GMAC is willing to sell on the date hereof such contracts and related rights to CARI;

     WHEREAS, CARI may wish to sell or otherwise transfer on the date hereof such contracts and
related rights, or interests therein, to a trust, corporation, partnership or other entity (any
such entity being the “Issuer”);

     WHEREAS, the Issuer may issue debentures, notes, participations, certificates of beneficial
interest, partnership interests or other interests or securities (collectively, any such issued
interests or securities being “Securities”) to fund its acquisition of such contracts and
related rights;

     WHEREAS, the Issuer may wish to provide in the agreements pursuant to which it acquires its
interest in such contracts and related rights and issues the Securities (all such agreements,
including the Trust Sale and Servicing Agreement and the Indenture, being collectively the
“Further Transfer and Servicing Agreements”) that GMAC shall service such contracts;

     WHEREAS, the Servicer is willing to service such contracts in accordance with the terms hereof
for the benefit of CARI and, by its execution of the Further Transfer and Servicing Agreements,
will be willing to service such contracts in accordance with the terms of such Further Transfer and
Servicing Agreements for the benefit of the Issuer and each other party identified or described
herein or in the Further Transfer and Servicing Agreements as having an interest as owner, trustee,
secured party, or holder of Securities (the Issuer and all such parties under the Further Transfer
and Servicing Agreements being “Interested Parties”) with respect to such contracts, and
the proceeds thereof, as the interests of such parties may appear from time to time.

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

ARTICLE I

DEFINITIONS

     SECTION
1.01      Definitions. Certain capitalized terms used in this Agreement are defined
in and shall have the respective meanings assigned to them in Part I of Appendix A to this
Agreement. All references herein to “the Agreement” or “this Agreement” are to
this Pooling and Servicing Agreement as it may be amended, supplemented or modified from time to

1

 

time, and all references herein to Articles and Sections are to Articles or Sections of this
Agreement unless otherwise specified. The rules of construction set forth in Part II of such
Appendix A shall be applicable to this Agreement.

     SECTION
1.02      Owner of a Receivable. For purposes of this Agreement, the “Owner”
of a Receivable shall mean CARI until the sale, transfer, assignment or other conveyance of such
Receivable by CARI pursuant to the terms of the Further Transfer and Servicing Agreements, and
thereafter shall mean the Issuer; provided, that GMAC or CARI, as applicable, shall be the
“Owner” of any Receivable from and after the time that such Person shall acquire such
Receivable, whether pursuant to Section 3.08 or 5.04 of this Agreement, any
provision of the Further Transfer and Servicing Agreements or otherwise.

ARTICLE II

PURCHASE AND SALE OF RECEIVABLES

     SECTION 2.01      Purchase and Sale of Receivables.

                  (a)      Purchase. On the Closing Date, subject to satisfaction of the conditions
specified in Article VI and the First Step Receivables Assignment (and, in any event, immediately
prior to consummation of the related transactions contemplated by the Further Transfer and
Servicing Agreements, if any), GMAC shall sell, transfer, assign and otherwise convey to CARI,
without recourse:

                            (i)      all right, title and interest of GMAC in, to and under the Receivables listed on the
Schedule of Receivables and (A) in the case of Receivables that are Scheduled Interest Receivables,
all monies due thereunder on and after the Cutoff Date and (B) in the case of Receivables that are
Simple Interest Receivables, all monies received thereon on and after the Cutoff Date, in each
case, exclusive of any amounts allocable to the premium for physical damage insurance force-placed
by GMAC covering any related Financed Vehicle;

                            (ii)      the interest of GMAC in the security interests in the Financed Vehicles granted by
Obligors pursuant to the Receivables and, to the extent permitted by law, any accessions thereto;

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

                            (iv)      the interest of GMAC in any proceeds from recourse against Dealers on the Receivables;

                            (v)      all right, title and interest of the Seller in, to and under the First Step Receivables
Assignment; and

                            (vi)      the present and future claims, demands, causes and choses in action in respect of any or
all the foregoing described in clauses (i) through (v) above and all payments on or
under and all proceeds of every kind and nature whatsoever in respect of any or all the foregoing,
including all proceeds of the conversion of any or all of the foregoing,

2

 

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, investment property, payment intangible, general intangibles, 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.

     The property described in clauses (i) through (vi) above is referred to herein
collectively as the “Purchased Property.”

                  (b)      It is the intention of GMAC and CARI that the transfer and assignment of Receivables
contemplated by this Agreement and the First Step Receivables Assignment shall constitute a sale of
the Receivables from GMAC to CARI and the beneficial interest in and title to the Receivables shall
not be part of GMAC’s estate in the event of the filing of a bankruptcy petition by or against GMAC
under any bankruptcy law.

                  (c)      The transfer and assignment of Receivables contemplated by this Agreement and the First
Step Receivables Assignment does not constitute and is not intended to result in any assumption by
CARI of any obligation of GMAC to the Obligors, Dealers, insurers or any other Person in connection
with the Receivables, any Dealer Agreements, any insurance policies or any agreement or instrument
relating to any of them.

     SECTION 2.02      Receivables Purchase Price.

     In consideration for the Purchased Property, CARI shall, on the Closing Date, pay to GMAC an
amount equal to the Initial Aggregate Receivables Principal Balance in respect of the Receivables
and GMAC shall execute and deliver to CARI an assignment in the form attached hereto as Exhibit A
(the “First Step Receivables Assignment”). The Initial Aggregate Receivables Principal
Balance, which is equal to $3,151,304,872.54 shall be paid to GMAC in immediately available funds.

     SECTION 2.03      The Closing.

     The sale and purchase of the Receivables shall take place at the offices of Kirkland & Ellis
LLP, 200 East Randolph Drive, Chicago, Illinois 60601, on the Closing Date at a time mutually
agreeable to GMAC and CARI, and will occur simultaneously with the closing of transactions
contemplated by the Further Transfer and Servicing Agreements.

     SECTION
2.04      Custody of Receivable Files. In connection with the sale, transfer and
assignment of the Receivables to CARI pursuant to this Agreement and the First Step Receivables
Assignment, CARI, simultaneously with the execution and delivery of this Agreement, shall enter
into the Custodian Agreement with the Custodian, pursuant to which CARI shall revocably appoint the
Custodian, and the Custodian shall accept such appointment, to act as the agent of CARI as
Custodian of the following documents or instruments which shall be constructively delivered to CARI
with respect to each Receivable:

                  (a)      the fully executed original of the instalment sale contract or direct purchase money loan,
as applicable, for such Receivable;

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

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

                  (d)      where permitted by law, the original certificate of title (when received) and otherwise
such documents, if any, that GMAC keeps on file in accordance with its customary procedures
indicating that the Financed Vehicle is owned by the Obligor and subject to the interest of GMAC as
first lienholder or secured party; and

                  (e)      any and all other documents that GMAC keeps on file in accordance with its customary
procedures relating to the individual Receivable, Obligor or Financed Vehicle.

ARTICLE III

ADMINISTRATION AND SERVICING OF RECEIVABLES

     SECTION
3.01      Duties of the Servicer. (a) The Servicer is hereby appointed and
authorized to act as agent for the Owner of the Receivables and in such capacity shall manage,
service, administer and make collections on the Receivables with reasonable care, using that degree
of skill and attention that the Servicer exercises with respect to comparable automotive
receivables that it services for itself or others. The Servicer hereby accepts such appointment
and authorization and agrees to perform the duties of Servicer with respect to the Receivables set
forth herein and in the Further Transfer and Servicing Agreements.

                  (b)      The Servicer’s duties shall include collection and posting of all payments, responding to
inquiries of Obligors, investigating delinquencies, sending payment coupons to Obligors, reporting
tax information to Obligors, policing the collateral, accounting for collections and furnishing
monthly and annual statements to the Owner of any Receivables with respect to distributions,
generating federal income tax information and performing the other duties specified herein.
Subject to the provisions of Section 3.02, the Servicer shall follow its customary
standards, policies and procedures and shall have full power and authority, acting alone, to do any
and all things in connection with such managing, servicing, administration and collection that it
may deem necessary or desirable.

                  (c)      Without limiting the generality of the foregoing, the Servicer is hereby authorized and
empowered by the Owner of the Receivables, pursuant to this Section 3.01, to execute and
deliver, on behalf of all Interested Parties, or any of them, any and all instruments of
satisfaction or cancellation, or of partial or full release or discharge, and all other comparable
instruments, with respect to the Receivables and the Financed Vehicles. The Servicer is hereby
authorized to commence, in its own name or in the name of the Owner of such Receivable a legal
proceeding to enforce a Liquidating Receivable as contemplated by Section 3.04, to enforce
all obligations of GMAC and CARI under this Agreement and under the Further Transfer and Servicing
Agreements or to commence or participate in a legal proceeding (including without limitation a
bankruptcy proceeding) relating to or involving a Receivable or a Liquidating Receivable. If the
Servicer commences or participates in such a legal proceeding in its own name, the Servicer is
hereby authorized and empowered by the Owner of the Receivables pursuant to this Section
3.01, to obtain possession of the related Financed Vehicle and

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immediately and without further action on the part of the Owner or the Servicer, the Owner of
such Receivable shall thereupon automatically assign in trust such Receivable and the security
interest in the related Financed Vehicle to the Servicer for the benefit of the Interested Parties
for purposes of commencing or participating in any such proceeding as a party or claimant. Upon
such automatic assignment, the Servicer will be, and will have all the rights and duties of, a
secured party under the UCC and other applicable law with respect to such Receivable and the
related Financed Vehicle. At the Servicer’s request from time to time, the Owner of a Receivable
assigned under this Section 3.01 shall provide the Servicer with evidence of the assignment
in trust for the benefit of the Interested Parties as may be reasonably necessary for the Servicer
to take any of the actions set forth in the following sentence.

                  (d)      The Servicer is hereby authorized and empowered by the Owner of a Receivable to execute
and deliver in the Servicer’s name any notices, demands, claims, complaints, responses, affidavits
or other documents or instruments in connection with any such proceeding. Any Owner of Receivables
shall furnish the Servicer with any powers of attorney and other documents and take any other steps
which the Servicer may deem necessary or appropriate to enable the Servicer to carry out its
servicing and administrative duties under this Agreement and the Further Transfer and Servicing
Agreements. Except to the extent required by the preceding two sentences, the authority and rights
granted to the Servicer in this Section 3.01 shall be nonexclusive and shall not be
construed to be in derogation of the retention by the Owner of a Receivable of equivalent authority
and rights.

     SECTION
3.02      Collection of Receivable Payments. The Servicer shall make reasonable
efforts to collect all payments called for under the terms and provisions of the Receivables as and
when the same shall become due, and shall follow such collection practices, policies and procedures
as it follows with respect to comparable automotive receivables that it services for itself or
others in connection therewith. Except as provided in Section 3.07(a)(iii), the Servicer
is hereby authorized to grant extensions, rebates or adjustments on a Receivable without the prior
consent of the Owner of such Receivable. The Servicer is authorized in its discretion to waive any
prepayment charge, late payment charge or any other fees that may be collected in the ordinary
course of servicing such Receivable.

     SECTION
3.03      Rebates on Full Prepayments on
Scheduled Interest Receivables. If the
amount of a full Prepayment by an Obligor under a Scheduled Interest Receivable, after adjustment
for the Rebate, is less than the amount that would be payable under the actuarial method if a full
Prepayment were made at the end of the billing month under such Scheduled Interest Receivable,
either because the Rebate calculated under the terms of such Receivable is greater than the amount
calculable under the actuarial method or because the Servicer’s customary servicing procedure is to
credit a greater Rebate, the Servicer, as part of its servicing duties, shall remit such difference
to the Owner of such Receivable.

     SECTION
3.04      Realization Upon Liquidating Receivables. The Servicer shall use
reasonable efforts, consistent with its customary practices, policies and procedures, to repossess
or otherwise comparably convert the ownership of any Financed Vehicle that it has reasonably
determined should be repossessed or otherwise converted following a default under the Receivable
secured by the Financed Vehicle. The Servicer is authorized to follow such customary practices,
policies and procedures as it follows with respect to comparable automotive

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receivables that it services for itself or others, which customary practices, policies and
procedures may include reasonable efforts to realize upon any recourse to Dealers, selling the
related Financed Vehicle at public or private sale and other actions by the Servicer in order to
realize upon such a Receivable. The Servicer is hereby authorized to exercise its discretion
consistent with its customary practices, policies and procedures and the terms of this Agreement,
in servicing Liquidating Receivables so as to maximize the realization of those Liquidating
Receivables. The Servicer shall not be liable for any such exercise of its discretion to sell or
not to sell such Liquidating Receivables made in good faith. The foregoing is subject to the
provision that, in any case in which the Financed Vehicle shall have suffered damage, the Servicer
shall not expend funds in connection with any repair or towards the repossession of such Financed
Vehicle unless it shall determine in its discretion that such repair and/or repossession shall
increase the proceeds of liquidation of the related Receivable by an amount greater than the amount
of such expenses. The Servicer shall be entitled to receive Liquidation Expenses with respect to
each Liquidating Receivable at such time as the Receivable becomes a Liquidating Receivable (or as
may otherwise be provided in the Further Transfer and Servicing Agreements).

     SECTION
3.05      Maintenance of Insurance Policies. The Servicer shall, in accordance with
its customary practices, policies and procedures, require that each Obligor shall have obtained
physical damage insurance covering the Financed Vehicle as of the execution of the related
Receivable. The Servicer shall, in accordance with its customary practices, policies and
procedures, monitor such physical damage insurance with respect to each Receivable.

     SECTION
3.06      Maintenance of Security Interests in Vehicles. The Servicer shall, in
accordance with its customary practices, policies and procedures and at its own expense, take such
steps as are necessary to maintain perfection of the security interest created by each Receivable
in the related Financed Vehicle. The Owner of each Receivable hereby authorizes the Servicer to
re-perfect such security interest on behalf of such Owner, as necessary because of the relocation
of a Financed Vehicle, or for any other reason.

     SECTION
3.07      Covenants, Representations and Warranties of the Servicer. As of the
Closing Date, the Servicer hereby makes the following representations, warranties and covenants on
which CARI relies in accepting the Receivables hereunder and pursuant to the related First Step
Receivables Assignment, and on which the Issuer shall rely in accepting such Receivables and
executing and delivering the Securities under the Further Transfer and Servicing Agreements.

                  (a)      The Servicer covenants that from and after the closing hereunder:

                            (i)      Liens in Force. Except as contemplated in this Agreement or the Further Transfer
and Servicing Agreements, the Servicer shall not release in whole or in part any Financed Vehicle
from the security interest securing the related Receivable;

                            (ii)      No Impairment. The Servicer shall do nothing to impair the rights or security
interest of CARI or any Interested Party in and to the Purchased Property; and

6

 

                            (iii)      No Modifications. The Servicer shall not amend or otherwise modify any
Receivable such that the Amount Financed, the Annual Percentage Rate, the total number of Scheduled
Payments (in the case of a Scheduled Interest Receivable) or the number of originally scheduled due
dates (in the case of a Simple Interest Receivable), is altered or such that the last Scheduled
Payment (in the case of a Scheduled Interest Receivable) or the last scheduled due date (in the
case of a Simple Interest Receivable) occurs after the Final Scheduled Distribution Date.

                  (b)      Upon the execution of this Agreement and the Further Transfer and Servicing Agreements,
the Servicer represents and warrants to the Issuer and CARI that as of the Closing Date, in
addition to the representations and warranties in Sections 4.01 and 4.02 being true:

                            (i)      Organization and Good Standing. The Servicer has been duly organized and is
validly existing and in good standing under the laws of its state of incorporation, with power and
authority to own its properties and to conduct its business as such properties are presently owned
and such business is presently conducted, and had at all relevant times, and now has, power,
authority and legal right to service the Receivables as provided herein and in the Further Transfer
and Servicing Agreements;

                            (ii)      Due Qualification. The Servicer is duly qualified to do business as a foreign
corporation in good standing, and has obtained all necessary licenses and approvals, in all
jurisdictions in which the ownership or lease of property or the conduct of its business (including
the servicing of the Receivables) requires or shall require such qualification;

                            (iii)      Power and Authority. The Servicer has the power and authority to execute and
deliver this Agreement and the Further Transfer and Servicing Agreements and to carry out the terms
of such agreements; and the Servicer’s execution, delivery and performance of this Agreement and
the Further Transfer and Servicing Agreements have been duly authorized by the Servicer by all
necessary corporate action;

                            (iv)      Binding Obligation. The Further Transfer and Servicing Agreements and this
Agreement, when duly executed and delivered, shall constitute the legal, valid and binding
obligations of the Servicer enforceable in accordance with their respective terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization, or other similar laws
affecting the enforcement of creditors’ rights in general and by general principles of equity,
regardless of whether such enforceability is considered in a proceeding in equity or at law;

                            (v)      No Violation. The consummation by the Servicer of the transactions contemplated
by this Agreement and the Further Transfer and Servicing Agreements, and the fulfillment by the
Servicer of the terms hereof and thereof, shall 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) a default
under, the articles of incorporation or by-laws of the Servicer, or any indenture, agreement,
mortgage, deed of trust or other instrument to which the Servicer is a party or by which it is
bound, or result in the creation or imposition of any Lien upon any of its properties pursuant to
the terms of any such indenture, agreement, mortgage, deed of trust or

7

 

other instrument, other than this Agreement and the Further Transfer and Servicing Agreements,
or violate any law or, to the best of the Servicer’s knowledge, any order, rule or regulation
applicable to the Servicer of any court or of any federal or state regulatory body, administrative
agency or other governmental instrumentality having jurisdiction over the Servicer or any of its
properties; and

                            (vi)      No Proceedings. To the Servicer’s knowledge, there are no proceedings or
investigations pending, or threatened, before any court, regulatory body, administrative agency or
other tribunal or governmental instrumentality having jurisdiction over the Servicer or its
properties (A) asserting the invalidity of this Agreement and the Further Transfer and Servicing
Agreements or any Securities issued thereunder, (B) seeking to prevent the issuance of such
Securities or the consummation of any of the transactions contemplated by the Further Transfer and
Servicing Agreements, or (C) seeking any determination or ruling that might materially and
adversely affect this Agreement, the performance by the Servicer of its obligations under, or the
validity or enforceability of, the Further Transfer and Servicing Agreements.

     SECTION
3.08      Purchase of Receivables Upon Breach of Covenant. Upon discovery by any of
the Servicer, CARI or any party under the Further Transfer and Servicing Agreements of a breach of
any of the covenants set forth in Sections 3.06 and 3.07(a), the party discovering such
breach shall give prompt written notice thereof to the others. As of the last day of the second
Monthly Period following its discovering or receiving notice of such breach (or, at the Servicer’s
election, the last day of the first Monthly Period so following), the Servicer shall, unless it
shall have cured such breach in all material respects, purchase from the Owner thereof any
Receivable materially and adversely affected by such breach as determined by such Owner and, on the
related Distribution Date, the Servicer shall pay the Administrative Purchase Payment, and shall be
entitled to receive the Released Administrative Amount, if any. It is understood and agreed that
the obligation of the Servicer to purchase any Receivable with respect to which such a breach has
occurred and is continuing shall, if such obligation is fulfilled, constitute the sole remedy
against the Servicer for such breach available to CARI or any Interested Party.

     SECTION
3.09      Basic Servicing Fee; Payment of Certain Expenses by Servicer. The Servicer
is entitled to receive the Basic Servicing Fee out of collections in respect of the Receivables and
other available funds, as and to the extent set forth in the Further Transfer and Servicing
Agreements. The Servicer shall also be entitled to Investment Earnings as, and to the extent, set
forth in the Further Transfer and Servicing Agreements. Subject to any limitations on the
Servicer’s liability under the Further Transfer and Servicing Agreements, the Servicer shall be
required to pay all expenses incurred by it in connection with its activities under this Agreement
and under the Further Transfer and Servicing Agreements (including fees and disbursements of the
Issuer, any trustees and independent accountants, taxes imposed on the Servicer, expenses incurred
in connection with distributions and reports to holders of Securities and all other fees and
expenses not expressly stated under this Agreement or the Further Transfer and Servicing Agreements
to be for the account of the holders of Securities).

     SECTION 3.10      Servicer’s Accounting. On each Determination Date under a Further
Transfer and Servicing Agreement, the Servicer shall deliver to each of the trustees and

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other applicable parties under the Further Transfer and Servicing Agreements and to CARI and
the Rating Agencies a Servicer’s Accounting with respect to the immediately preceding Monthly
Period executed by the President or any Vice President of the Servicer containing all information
necessary to each such party for making any distributions required by the Further Transfer and
Servicing Agreements, and all information necessary to each such party for sending any statements
required under the Further Transfer and Servicing Agreements. Receivables to be purchased by the
Servicer under Sections 3.08 or 5.04 or to be repurchased by CARI or GMAC under the Further
Transfer and Servicing Agreements as of the last day of any Monthly Period shall be identified by
Receivable number (as set forth in the Schedule of Receivables). With respect to any Receivables
for which CARI is the Owner, the Servicer shall deliver to CARI such accountings relating to such
Receivables and the actions of the Servicer with respect thereto as CARI may reasonably request.

     SECTION 3.11      Application of Collections. For the purposes of this Agreement and the
Further Transfer and Servicing Agreements, no later than each Distribution Date all collections for
the related Monthly Period shall be applied by the Servicer as follows:

                  (a)      With respect to each Scheduled Interest Receivable (other than an Administrative
Receivable or a Warranty Receivable), payments by or on behalf of the Obligor that are not
Supplemental Servicing Fees shall be applied first to reduce outstanding advances of shortfalls in
collections, if any, made pursuant to the Further Transfer and Servicing Agreements with respect to
such Receivable. Next, the amount of any such payments that are not Supplemental Servicing Fees
and are in excess of such advances with respect to such Receivable shall be applied to the
Scheduled Payment with respect to such Receivable. Any amount of such payments remaining after the
applications described in the preceding two sentences constitutes an Excess Payment with respect to
such Receivable, and such Excess Payment (to the extent it does not constitute a Payment Ahead)
shall be applied to prepay such Receivable. If the amounts applied under the first two sentences
of this Section 3.11(a) shall be less than the Scheduled Payment, whether as a result of
any extension granted to the Obligor or otherwise, then the Deferred Prepayment, if any, with
respect to such Receivable shall be applied by the Servicer to the extent of the shortfall, and
such Deferred Prepayment shall be reduced accordingly.

                  (b)      With respect to all Simple Interest Receivables (other than Administrative Receivables and
Warranty Receivables), payments by or on behalf of the Obligors that are not Supplemental Servicing
Fees shall be applied first to the payment to the Servicer of Excess Simple Interest Collections,
if any, and next to principal and interest on all such Simple Interest Receivables.

                  (c)      With respect to a Scheduled Interest Receivable or a Simple Interest Receivable that is
also an Administrative Receivable and Warranty Receivable, payments by or on behalf of the Obligor
shall be applied in the same manner as set forth in Section 3.11(a) or Section 3.11(b), as
applicable, except that any Released Administrative Amount or Released Warranty Amount shall be
remitted to the Servicer or CARI, as applicable. In the case of a Scheduled Interest Receivable, a
Warranty Payment shall be applied first to reduce any advances described in Section
3.11(a); and then the remaining amount of such Warranty Payment or an Administrative Purchase
Payment, as applicable, shall be applied to the Scheduled Payment, in each case to the extent that
the payments by or on behalf of the Obligor shall be insufficient to

9

 

pay such amount, and then to prepay such Receivable in full. In the case of a Simple Interest
Receivable, a Warranty Payment or an Administrative Purchase Payment, as applicable, shall be
applied to principal and interest on such Receivable.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

     SECTION
4.01      Representations and Warranties as to the Receivables. GMAC makes the
following representations and warranties as to the Receivables, on which CARI relies in accepting
the Receivables. Such representations and warranties speak as of the Closing Date, and shall
survive the sale, transfer and assignment of the Receivables to CARI and the subsequent assignment
and transfer pursuant to the Further Transfer and Servicing Agreements:

                  (a)      Characteristics of Receivables.

                            (i)      General. Each Receivable:

                                     (1)      is secured by a Financed Vehicle, was originated in the United States by GMAC or one of
its subsidiaries or a Dealer for the retail sale of a Financed Vehicle in the ordinary course of
business, was fully and properly executed by the parties thereto, if not originated by GMAC, was
purchased by GMAC from one of its subsidiaries or from such Dealer under an existing Dealer
Agreement, and was validly assigned by such subsidiary or such Dealer to GMAC in accordance with
its terms,

                                     (2)      has created or shall create a valid, binding and enforceable first priority security
interest in favor of GMAC in the Financed Vehicle, which security interest is assignable by GMAC to
CARI,

                                     (3)      contains customary and enforceable provisions such as to render the rights and remedies of
the holder thereof adequate for realization against the collateral of the benefits of the security,

                                     (4)      is a Scheduled Interest Receivable or a Simple Interest Receivable,

                                     (5)      provides for level monthly payments which may vary from one another by no more than $5,
which shall amortize the Amount Financed by maturity and shall yield interest at the Annual
Percentage Rate,

                                     (6)      has an original term of not less than six months and not greater than 72 months and a
remaining term of not less than six months, and

                                     (7)      at least one monthly payment has been made.

                            (ii)      Receivables. In addition to the characteristics set forth in Section
4.01(a)(i) above, each Receivable (1) has a first scheduled payment due date on or after
December 3, 1999 (2) was originated on or after October 29, 1999 (3) as of the Cutoff Date, was not
considered past due (that is, no payments due on that Receivable in excess of $25 were more

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than thirty (30) days delinquent), and was not a Liquidating Receivable and (4) has an Annual
Percentage Rate not greater than 8.85%.

                  In addition, Scheduled Interest Receivables represent (based on Principal Balances) 28.47% of
the Aggregate Amount Financed as of the Cutoff Date, with the balance of the Receivables being
Simple Interest Receivables.

                  (b)      Creation, Perfection and Priority of Security Interests. The representations and
warranties regarding creation, perfection and priority of security interests in the Purchased
Property, which are attached to this Agreement as Appendix B, are true and correct to the extent
that they are applicable;

                  (c)      Schedule of Receivables. The information set forth in the Schedule of Receivables
is true and correct in all material respects, and no selection procedures believed to be adverse to
CARI or to holders of the Securities issued under the Further Transfer and Servicing Agreements
were utilized in selecting the Receivables from those receivables of GMAC that meet the selection
criteria set forth in this Agreement;

                  (d)      Compliance With Law. All requirements of applicable federal, state and local
laws, and regulations thereunder, including, without limitation, usury laws, the Federal
Truth-in-Lending Act, the Equal Credit Opportunity Act, the Fair Credit Billing Act, the Fair
Credit Reporting Act, the Fair Debt Collection Practices Act, the Federal Trade Commission Act, the
Magnuson-Moss Warranty Act, the Federal Reserve Board’s Regulations “B” and “Z”, the Servicemembers
Civil Relief Act of 2003, the Texas Consumer Credit Code, and state adaptations of the National
Consumer Act and of the Uniform Consumer Credit Code and other consumer credit laws and equal
credit opportunity and disclosure laws, in respect of any of the Receivables and other Purchased
Property, have been complied with in all material respects, and each Receivable and the sale of the
Financed Vehicle evidenced thereby complied at the time it was originated or made and now complies
in all material respects with all legal requirements of the jurisdiction in which it was originated
or made;

                  (e)      Binding Obligation. Each Receivable represents the genuine, legal, valid and
binding payment obligation in writing of the Obligor thereon, enforceable by the holder thereof in
accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency,
reorganization or similar laws affecting the enforcement of creditors’ rights in general and by
equity, regardless of whether such enforceability is considered in a proceeding in equity or at
law;

                  (f)      Security Interest in Financed Vehicle. Immediately prior to the sale, transfer
and assignment thereof pursuant hereto and the First Step Receivables Assignment, each Receivable
was secured by a validly perfected first priority security interest in the Financed Vehicle in
favor of GMAC as secured party or all necessary and appropriate action had been commenced that
would result in the valid perfection of a first priority security interest in the Financed Vehicle
in favor of GMAC as secured party;

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                  (g)      Receivables In Force. No Receivable has been satisfied, subordinated or
rescinded, and the Financed Vehicle securing each such Receivable has not been released from the
lien of the related Receivable in whole or in part;

                  (h)      No Waiver. Since the Cutoff Date no provision of a Receivable has been waived,
altered or modified in any respect;

                  (i)      No Defenses. No right of rescission, setoff, counterclaim or defense has been
asserted or threatened with respect to any Receivable;

                  (j)      No Liens. To the best of GMAC’s knowledge: (1) there are no liens or claims that
have been filed for work, labor or materials affecting any Financed Vehicle securing any Receivable
that are or may be liens prior to, or equal or coordinate with, the security interest in the
Financed Vehicle granted by the Receivable; (2) no contribution failure has occurred with respect
to any Benefit Plan which is sufficient to give rise to a lien under Section 302 (f) of ERISA with
respect to any Receivable; and (3) no tax lien has been filed and no claim related thereto is being
asserted with respect to any Receivable;

                  (k)      Insurance. Each Obligor is required to maintain a physical damage insurance
policy of the type that GMAC requires in accordance with its customary underwriting standards for
the purchase of automotive receivables;

                  (l)      Good Title. No Receivable has been sold, transferred, assigned or pledged by GMAC
to any Person other than CARI; immediately prior to the conveyance of the Receivables pursuant to
this Agreement and the First Step Receivables Assignment, GMAC had good and marketable title
thereto, free of any Lien; and, upon execution and delivery of this Agreement by GMAC, CARI shall
have all of the right, title and interest of GMAC in and to the Receivables, the unpaid
indebtedness evidenced thereby and the collateral security therefor, free of any Lien;

                  (m)      Lawful Assignment. No Receivable was originated in, or is subject to the laws of,
any jurisdiction the laws of which would make unlawful the sale, transfer and assignment of such
Receivable under this Agreement, the Trust Sale and Servicing Agreement or the Indenture, as
applicable;

                  (n)      All Filings Made. All filings (including, without limitation, UCC filings)
necessary in any jurisdiction to give CARI a first priority perfected ownership interest in the
Receivables shall have been made;

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

                  (p)      No Documents or Instruments. No Receivable, or constituent part thereof,
constitutes a “negotiable instrument” or “negotiable document of title” (as such
terms are used in the UCC); and

                  (q)      No Amendment. No Receivable has been amended or otherwise modified such that the
total number of the Obligor’s Scheduled Payments (in the case of a Scheduled

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Interest Receivable) or the number of originally scheduled due dates (in the case of a Simple
Interest Receivable) has been increased or such that the Amount Financed has been increased.

     SECTION
4.02      Additional Representations and Warranties of GMAC. GMAC hereby represents
and warrants to CARI as of the Closing Date, both in its capacity as the seller of the Receivables
hereunder and in its capacity as Servicer, that:

                  (a)      Organization and Good Standing. GMAC has been duly organized and is validly
existing as a corporation 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 presently owned
and such business is presently conducted;

                  (b)      Due Qualification. GMAC is duly qualified to do business as a foreign corporation
in good standing, and has obtained all necessary licenses and approvals, in all jurisdictions in
which the ownership or lease of property or the conduct of its business (including the servicing of
the Receivables) requires or shall require such qualification;

                  (c)      Power and Authority. GMAC has the power and authority to execute and deliver this
Agreement and the First Step Receivables Assignment and to carry out its terms; GMAC has full power
and authority to sell and assign the property to be sold and assigned to CARI and to service the
Receivables as provided herein and in the Further Transfer and Servicing Agreements, has duly
authorized such sale and assignment to CARI by all necessary corporate action; and the execution,
delivery and performance of this Agreement and the First Step Receivables Assignment have been duly
authorized by GMAC by all necessary corporate action;

                  (d)      Valid Sale; Binding Obligation. This Agreement and the First Step Receivables
Assignment, when duly executed and delivered, shall constitute a valid sale, transfer and
assignment of the Receivables, in each case, enforceable against creditors of and purchasers from
GMAC; and this Agreement together with the First Step Receivables Assignment, when duly executed
and delivered, shall constitute a legal, valid and binding obligation of GMAC enforceable in
accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency,
reorganization or other similar laws affecting the enforcement of creditors’ rights in general and
by general principles of equity, regardless of whether such enforceability is considered in a
proceeding in equity or at law;

                  (e)      No Violation. The consummation of the transactions contemplated by this Agreement
and the First Step Receivables Assignment and the fulfillment of the terms of this Agreement and
the First Step Receivables Assignment shall 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) a default under,
the articles of incorporation or by-laws of GMAC, or any indenture, agreement, mortgage, deed of
trust or other instrument to which GMAC is a party or by which it is bound, or result in the
creation or imposition of any Lien upon any of its properties pursuant to the terms of any such
indenture, agreement, mortgage, deed of trust or other instrument, other than this Agreement and
the First Step Receivables Assignment or violate any law or, to the best of GMAC’s knowledge, any
order, rule or regulation applicable to GMAC of any court or of any

13

 

federal or state regulatory body, administrative agency or other governmental instrumentality
having jurisdiction over GMAC or any of its properties; and

                  (f)      No Proceedings. To GMAC’s knowledge, there are no proceedings or investigations
pending, or threatened, before any court, regulatory body, administrative agency or other tribunal
or governmental instrumentality having jurisdiction over GMAC or its properties (A) asserting the
invalidity of this Agreement and the First Step Receivables Assignment, (B) seeking to prevent the
consummation of any of the transactions contemplated by this Agreement and the First Step
Receivables Assignment, or (C) seeking any determination or ruling that might materially and
adversely affect the performance by GMAC of its obligations under, or the validity or
enforceability of, this Agreement and the First Step Receivables Assignment.

     SECTION
4.03      Representations and Warranties of CARI. CARI hereby represents and
warrants to GMAC as of the Closing Date:

                  (a)      Organization and Good Standing. CARI has been duly organized and is validly
existing as a corporation 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 presently owned
and such business is presently conducted, and had at all relevant times, and now has, power,
authority and legal right to acquire and own the Receivables;

                  (b)      Due Qualification. CARI is duly qualified to do business as a foreign corporation
in good standing, and has obtained all necessary licenses and approvals in all jurisdictions in
which the ownership or lease of property or the conduct of its business requires such
qualification;

                  (c)      Power and Authority. CARI has the power and authority to execute and deliver this
Agreement and the First Step Receivables Assignment and to carry out its terms and the execution,
delivery and performance of this Agreement and the First Step Receivables Assignment have been duly
authorized by CARI by all necessary corporate action;

                  (d)      No Violation. The consummation of the transactions contemplated by this Agreement
and the First Step Receivables Assignment and the fulfillment of the terms of this Agreement and
the First Step Receivables Assignment shall 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) a default under,
the certificate of incorporation or by-laws of CARI, or any indenture, agreement, mortgage, deed of
trust or other instrument to which CARI is a party or by which it is bound, or 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 any Further Transfer and Servicing Agreement
or violate any law or, to the best of CARI’s knowledge, any order, rule or regulation applicable to
CARI of any court or of any federal or state regulatory body, administrative agency or other
governmental instrumentality having jurisdiction over CARI or any of its properties; and

                  (e)      No Proceedings. To CARI’s knowledge, there are no proceedings or investigations
pending, or threatened, before any court, regulatory body, administrative agency

14

 

or other tribunal or governmental instrumentality having jurisdiction over CARI or its
properties (i) asserting the invalidity of this Agreement and the First Step Receivables
Assignment, or (ii) seeking any determination or ruling that might materially and adversely affect
the performance by CARI of its obligations under, or the validity or enforceability of, this
Agreement and the First Step Receivables Assignment.

ARTICLE V

ADDITIONAL AGREEMENTS

     SECTION
5.01      Conflicts With Further Transfer and Servicing Agreements. To the extent
that any provision of Sections 5.02 through 5.04 of this Agreement conflicts with any
provision of the Further Transfer and Servicing Agreements, the Further Transfer and Servicing
Agreements shall govern.

     SECTION 5.02      Protection of Title.

                  (a)      Filings. GMAC shall authorize and execute, as applicable, and file such financing
statements and cause to be authorized and executed, as applicable, and filed such continuation and
other statements, all in such manner and in such places as may be required by law fully to
preserve, maintain and protect the interest of CARI under this Agreement and the First Step
Receivables Assignment in the Receivables and the other Purchased Property and in the proceeds
thereof. GMAC shall deliver (or cause to be delivered) to CARI file-stamped copies of, or filing
receipts for, any document filed as provided above, as soon as available following such filing GMAC
hereby authorizes CARI and its assigns to file all such financing statements without its signature.

                  (b)      Name Change. GMAC shall not change its state of organization or its name,
identity or corporate structure in any manner that would, could or might make any financing
statement or continuation statement filed by GMAC, CARI or CARI’s assigns in accordance with
Section 5.02(a) seriously misleading within the meaning of the UCC, unless it shall have
given CARI at least sixty (60) days prior written notice thereof.

                  (c)      Executive Office; Maintenance of Offices. GMAC shall give CARI at least sixty
(60) days prior written notice of any relocation of its principal executive office if, as a result
of such relocation, the applicable provisions of the UCC would require the filing of any amendment
of any previously filed financing or continuation statement or of any new financing statement.
GMAC shall at all times maintain each office from which it services Receivables and its principal
executive office within the United States of America.

                  (d)      New Debtor. In the event that GMAC shall change the jurisdiction in which it is
incorporated or otherwise enter into any transaction which would result in a “new debtor”
(as defined in the UCC) succeeding to the obligations of GMAC hereunder, GMAC shall comply fully
with the obligations of Section 5.02(a).

     SECTION
5.03      Other Liens or Interests. Except for the conveyances hereunder and under
the First Step Receivables Assignment and as contemplated by the Further Transfer and Servicing
Agreements, GMAC shall not sell, pledge, assign or transfer the Receivables or other Purchased
Property to any other Person, or grant, create, incur, assume or suffer to exist any Lien

15

 

on any interest therein, and GMAC shall defend the right, title and interest of CARI in, to
and under such Receivables or other Purchased Property against all claims of third parties claiming
through or under GMAC.

     SECTION
5.04      Repurchase Events. By its execution of the Further Transfer and Servicing
Agreements to which it is a party, GMAC shall acknowledge the assignment by CARI of such of its
right, title and interest in, to and under this Agreement and the First Step Receivables Assignment
to the Issuer as shall be provided in the Further Transfer and Servicing Agreements. GMAC hereby
covenants and agrees with CARI for the benefit of CARI and the Interested Parties that in the event
of a breach of any of GMAC’s representations and warranties contained in Section 4.01
hereof with respect to any Receivable (a “Repurchase Event”), GMAC will repurchase such
Receivable from the Issuer (if the Issuer is then the Owner of such Receivable) on the date and for
the amount specified in the Further Transfer and Servicing Agreements, without further notice from
CARI hereunder. Upon the occurrence of a Repurchase Event with respect to a Receivable for which
CARI is the Owner, GMAC agrees to repurchase such Receivable from CARI for an amount and upon the
same terms as GMAC would be obligated to repurchase such Receivable from the Issuer if the Issuer
was then the Owner thereof, and upon payment of such amount, GMAC shall have such rights with
respect to such Receivable as if GMAC had purchased such Receivable from the Issuer as the Owner
thereof. It is understood and agreed that the obligation of GMAC to repurchase any Receivable as
to which a breach has occurred and is continuing shall, if such obligation is fulfilled, constitute
the sole remedy against GMAC for such breach available to CARI or any Interested Party.

     SECTION
5.05      Indemnification. GMAC shall indemnify CARI for any liability as a result
of the failure of a Receivable to be originated in compliance with all requirements of law. This
indemnity obligation shall be in addition to any obligation that GMAC may otherwise have.

     SECTION
5.06      Further Assignments. GMAC acknowledges that CARI may, pursuant to the
Further Transfer and Servicing Agreements, sell the Receivables to the Issuer and assign its rights
hereunder and under the First Step Receivables Assignment to the Issuer, subject to the terms and
conditions of the Further Transfer and Servicing Agreements, and that the Issuer may in turn
further pledge, assign or transfer its rights in the Receivables and this Agreement and the First
Step Receivables Assignment. GMAC further acknowledges that CARI may assign its rights under the
Custodian Agreement to the Issuer.

     SECTION
5.07      Pre-Closing Collections. Within two (2) Business Days after the Closing
Date GMAC shall transfer to the account or accounts designated by CARI (or by the Issuer under the
Further Transfer and Servicing Agreements) all collections on the Receivables held by GMAC on the
Closing Date, and conveyed to CARI pursuant to Section 2.01; provided that so long as the
Monthly Remittance Conditions are satisfied, such collections need not be transferred until the
first Distribution Date.

16

 

ARTICLE VI

CONDITIONS

     SECTION 6.01      Conditions to Obligation of CARI. The obligation of CARI to purchase the
Receivables hereunder and pursuant to the First Step Receivables Assignment is subject to the
satisfaction of the following conditions:

                  (a)      Representations and Warranties True. The representations and warranties of GMAC
hereunder shall be true and correct at the time of the Closing Date, and GMAC shall have performed
all obligations to be performed by it hereunder on or prior to the Closing Date.

                  (b)      No Repurchase Event. No Repurchase Event shall have occurred on or prior to the
Closing Date.

                  (c)      Computer Files Marked. GMAC shall, at its own expense, on or prior to the Closing
Date, indicate in its computer files created in connection with the Receivables that the
Receivables have been sold to CARI pursuant to this Agreement and the First Step Receivables
Assignment and deliver to CARI the Schedule of Receivables, certified by an officer of GMAC to be
true, correct and complete.

                  (d)      Documents to be Delivered By GMAC.

                            (i)      The Assignments. On the Closing Date, GMAC shall execute and deliver the First
Step Receivables Assignment.

                            (ii)      Evidence of UCC Filing. On or prior to the Closing Date, GMAC shall record and
file, at its own expense, a UCC-1 financing statement in each jurisdiction in which required by
applicable law, authorized by and naming GMAC as seller or debtor, naming CARI as purchaser or
secured party, naming the Receivables and the other Purchased Property as collateral, meeting the
requirements of the laws of each such jurisdiction and in such manner as is necessary to perfect
the sale, transfer, assignment and conveyance of such Receivables to CARI. GMAC shall deliver a
file-stamped copy, or other evidence satisfactory to CARI of such filing, to CARI on or prior to
the Closing Date.

                            (iii)      Other Documents. On the Closing Date GMAC shall provide such other documents as
CARI may reasonably request.

                  (e)      Other Transactions. The transactions contemplated by the Further Transfer and
Servicing Agreements shall be consummated to the extent that such transactions are intended to be
substantially contemporaneous with the transactions hereunder.

     SECTION
6.02      Conditions to Obligation of GMAC. The obligation of GMAC to sell the
Receivables to CARI hereunder or pursuant to the First Step Receivables Assignment is subject to
the satisfaction of the following conditions:

                  (a)      Representations and Warranties True. The representations and warranties of CARI
hereunder shall be true and correct as of the Closing Date with respect to the Receivables, and
CARI shall have performed all obligations to be performed by it hereunder or pursuant to the First
Step Receivables Assignment on or prior to the closing hereunder.

17

 

                  (b)      Receivables Purchase Price. On the Closing Date, CARI shall pay to GMAC the
Aggregate Receivables Principal Balance as provided in Section 2.02.

ARTICLE VII

MISCELLANEOUS PROVISIONS

     SECTION
7.01      Amendment. This Agreement may be amended from time to time (subject to any
expressly applicable amendment provision of the Further Transfer and Servicing Agreements) by a
written amendment duly executed and delivered by GMAC and CARI.

     SECTION 7.02      Survival. The representations and warranties of GMAC set forth in
Articles IV and V of this Agreement and of Servicer set forth in Section 3.07 of this
Agreement shall remain in full force and effect and shall survive the Closing Date under
Section 2.03 hereof and the closing under the Further Transfer and Servicing Agreements.

     SECTION
7.03      Notices. All demands, notices and communications upon or to GMAC or CARI
under this Agreement shall be delivered as specified in Part III of Appendix A to this
Agreement.

     SECTION
7.04      Governing Law. THIS AGREEMENT AND THE FIRST STEP RECEIVABLES ASSIGNMENT
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK,
WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS THEREOF OR OF ANY OTHER JURISDICTION OTHER
THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW, AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES UNDER THIS AGREEMENT SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     SECTION
7.05      Waivers. No failure or delay on the part of CARI in exercising any power,
right or remedy under this Agreement or the First Step Receivables Assignment shall operate as a
waiver thereof, nor shall any single or partial exercise of any such power, right or remedy
preclude any other or further exercise thereof or the exercise of any other power, right or remedy.

     SECTION
7.06      Costs and Expenses. GMAC agrees to pay all reasonable out-of-pocket costs
and expenses of CARI, including fees and expenses of counsel, in connection with the perfection as
against third parties of CARI’s right, title and interest in, to and under the Receivables and the
enforcement of any obligation of GMAC hereunder.

     SECTION
7.07      Confidential Information. CARI agrees that it shall neither use nor
disclose to any person the names and addresses of the Obligors, except in connection with the
enforcement of CARI’s rights hereunder, under the Receivables, under the Further Transfer and
Servicing Agreements or as required by law.

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

18

 

     SECTION
7.09      Counterparts. This Agreement may be executed in two or more counterparts
and by different parties on separate counterparts, each of which shall be an original, but all of
which together shall constitute one and the same instrument.

     SECTION
7.10      No Petition Covenant. Notwithstanding any prior termination of this
Agreement, GMAC shall not, prior to the date which is one year and one day after the final
distribution with respect to the Notes to the Note Distribution Account, acquiesce, petition or
otherwise invoke or cause CARI to invoke the process of any court or government authority for the
purpose of commencing or sustaining a case against CARI under any federal or state bankruptcy,
insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of CARI or any substantial part of its property, or ordering
the winding up or liquidation of the affairs of CARI.

     SECTION
7.11      Limitations on Rights of Others. The provisions of this Agreement and the
First Step Receivables Assignment are solely for the benefit of GMAC and CARI and, to the extent
expressly provided herein, the Interested Parties, and nothing in this Agreement, whether express
or implied, shall be construed to give to any other Person any legal or equitable right, remedy or
claim in, under, or in respect of this Agreement or any covenants, conditions or provisions
contained herein.

* * * * *

19

 

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

	 	 	 	 	 
	 	 	GENERAL MOTORS ACCEPTANCE CORPORATION
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Carl J. Vannatter
	 

	 	 	 	 
	 

	 	Name:
	 	Carl J. Vannatter
	 

	 	Title:
	 	Director — Global Securitization
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	CAPITAL AUTO RECEIVABLES, INC.
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Nancy L. Bugg
	 

	 	 	 	 
	 

	 	Name:
	 	Nancy L. Bugg
	 

	 	Title:
	 	Vice President

 

 

EXHIBIT A

FORM OF

FIRST STEP RECEIVABLES ASSIGNMENT

PURSUANT TO POOLING AND SERVICING AGREEMENT

     For value received, in accordance with the Pooling and Servicing Agreement, dated as of
February 16, 2006 (the “Pooling and Servicing Agreement”), between General Motors
Acceptance Corporation, a Delaware corporation (“GMAC”), and Capital Auto Receivables,
Inc., a Delaware corporation (“CARI”), GMAC does hereby sell, assign, transfer and
otherwise convey unto CARI, without recourse, (i) all right, title and interest of GMAC in, to and
under the Receivables listed on the Schedule of Receivables attached hereto and (a) in the case of
Receivables that are Scheduled Interest Receivables, all monies due thereunder on and after the
Cutoff Date and (b) in the case of Receivables that are Simple Interest Receivables, all monies
received thereon on and after the Cutoff Date, in each case exclusive of any amounts allocable to
the premium for physical damage insurance force-placed by GMAC covering any related Financed
Vehicle; (ii) the interest of GMAC in the security interests in the Financed Vehicles granted by
Obligors pursuant to the Receivables and, to the extent permitted by law, any accessions thereto;
(iii) the interest of GMAC in any proceeds from claims on any physical damage, credit life, credit
disability or other insurance policies covering Financed Vehicles or Obligors; (iv) the interest of
GMAC in any proceeds from recourse against Dealers on the Receivables; and (v) all right, title and
interest of GMAC in, to and under the First Step Receivables Assignment; and (vi) the present and
future claims, demands, causes and choses in action in respect of any or all the foregoing
described in clauses (i), (ii), (iii), (iv), and (v) above and all payments on or under and all
proceeds of every kind and nature whatsoever in respect of any or all the foregoing, including all
proceeds of the conversion of any or all of the foregoing, 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, investment property,
payment intangible, general intangibles, 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.

     It is the intention of GMAC and CARI that the transfer and assignment of Receivables
contemplated by this First Step Receivables Assignment shall constitute a sale of the Receivables
from GMAC to CARI and the beneficial interest in and title to the Receivables shall not be part of
GMAC’s estate in the event of the filing of a bankruptcy petition by or against GMAC under any
bankruptcy law.

     The foregoing transfer and assignment of Receivables contemplated by the Pooling and Servicing
Agreement and this First Step Receivables Assignment does not constitute and is not intended to
result in any assumption by CARI of any obligation of the undersigned to the Obligors, Dealers,
insurers or any other Person in connection with the Receivables, any Dealer Agreements, any
insurance policies or any agreement or instrument relating to any of them.

     This First Step Receivables Assignment is made pursuant to and upon the representations,
warranties and agreements on the part of the undersigned contained in the

1

 

Pooling and Servicing Agreement and is to be governed by the Pooling and Servicing Agreement.

     Capitalized terms used herein and not otherwise defined herein shall have the meaning assigned
to them in the Pooling and Servicing Agreement.

* * * * *

2

 

     IN WITNESS WHEREOF, the undersigned has caused this First Step Receivables Assignment to be
duly executed as of February 16, 2006.

	 	 	 	 	 
	 	 	GENERAL MOTORS ACCEPTANCE CORPORATION
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name: Carl J. Vannatter
	 	 	Title:   Director — Global Securitization

 

 

SCHEDULE A

SCHEDULE OF RECEIVABLES

The Schedule of Receivables is

on file at the offices of:

	 	1.	 	The Indenture Trustee
	 
	 	2.	 	The Owner Trustee
	 
	 	3.	 	General Motors Acceptance Corporation
	 
	 	4.	 	Capital Auto Receivables, Inc.

 

 

APPENDIX A

Part I

               For ease of reference, capitalized terms defined herein have been consolidated with and are
contained in Part I of Appendix A to the Trust Sale and Servicing Agreement of even date herewith
among GMAC, CARI and Capital Auto Receivables Asset Trust 2006-1, as amended and supplemented from
time to time.

Part II

               For ease of reference, the rules of construction have been consolidated with and are contained
in Part II of Appendix A to the Trust Sale and Servicing Agreement of even date herewith among
GMAC, CARI and Capital Auto Receivables Asset Trust 2006-1, as amended and supplemented from time
to time.

Part III

               For ease of reference, the notice addresses and procedures have been consolidated with and are
contained in Appendix B to the Trust Sale and Servicing Agreement of even date herewith among GMAC,
CARI and Capital Auto Receivables Asset Trust 2006-1, as amended and supplemented from time to
time.

 

 

APPENDIX B

Additional Representations and Warranties

	1.	 	While it is the intention of GMAC and CARI that the transfer and assignment contemplated by
this Agreement and the First Step Receivables Assignment shall constitute sales of the
Purchased Property from GMAC to CARI, this Agreement, the Trust Sale and Servicing Agreement
and the Indenture create a valid and continuing security interest (as defined in the
applicable UCC) in the Purchased Property in favor of CARI, the Trust and the Indenture
Trustee, as applicable, which security interest is prior to all other Liens, and is
enforceable as such as against creditors of and purchasers from GMAC, CARI and the Issuer,
respectively.
	 
	2.	 	All steps necessary to perfect GMAC’s security interest against each Obligor in the property
securing the Purchased Property have been taken.
	 
	3.	 	Prior to the sale of the Purchased Property to CARI under this Agreement, the Receivables
constitute “tangible chattel paper” within the meaning of the applicable UCC.
	 
	4.	 	GMAC owns and has good and marketable title to the Purchased Property free and clear of any
Lien, claim or encumbrance of any Person.
	 
	5.	 	GMAC has caused or will have caused, within ten (10) days, the filing of all appropriate
financing statements in the proper filing office in the appropriate jurisdictions under
applicable law in order to perfect the security interest in the Purchased Property granted to
CARI hereunder, the Issuer under the Trust Sale and Servicing Agreement and the Indenture
Trustee under the Indenture.
	 
	6.	 	Other than the security interest granted to CARI pursuant to the Basic Documents, the Issuer
under the Trust Sale and Servicing Agreement and the Indenture Trustee under the Indenture
none of GMAC, CARI or the Issuer has pledged, assigned, sold, granted a security interest in,
or otherwise conveyed any of the Purchased Property. None of GMAC, CARI or the Issuer has
authorized the filing of, nor is GMAC aware of, any financing statements against GMAC, CARI or
the Issuer that include a description of collateral covering the Purchased Property other than
the financing statements relating to the security interests granted to CARI, the Issuer and
the Indenture Trustee under the Basic Documents or any financing statement that has been
terminated. GMAC is not aware of any judgment or tax lien filings against GMAC, CARI or the
Issuer.
	 
	7.	 	GMAC, as Servicer, has in its possession all original copies of the Receivables Files and
other documents that constitute or evidence the Receivables and the Purchased Property. The
Receivables Files and other documents that constitute or evidence the Purchased Property do
not have any marks or notations indicating that they have been pledged, assigned or otherwise
conveyed to any Person other than CARI.

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