Document:

Exhibit 10.3

 

GUARANTEE AGREEMENT

 

by and between

 

MAIN STREET BANKS, INC.

 

and

 

U.S. BANK NATIONAL ASSOCIATION

 

Dated as of May 22, 2003

 

 

GUARANTEE AGREEMENT

 

This GUARANTEE AGREEMENT (this “Guarantee”), dated as
of May 22, 2003, is executed and delivered by Main Street Banks, Inc., a
Georgia corporation (the “Guarantor”), and U.S. Bank National Association, a
national banking association, organized under the laws of the United States of
America, as trustee (the “Guarantee Trustee”), for the benefit of the Holders
(as defined herein) from time to time of the Capital Securities (as defined
herein) of Main Street Banks Statutory Trust II, a Connecticut statutory trust
(the “Issuer”).

 

WHEREAS, pursuant to an Amended and Restated
Declaration of Trust (the “Declaration”), dated as of the date hereof among
U.S. Bank National Association, not in its individual capacity but solely as
institutional trustee, the administrators of the Issuer named therein, the
Guarantor, as sponsor, and the holders from time to time of undivided
beneficial interests in the assets of the Issuer, the Issuer is issuing on the
date hereof those undivided beneficial interests, having an aggregate
liquidation amount of $45,000,000 (the “Capital Securities”); and

 

WHEREAS, as incentive for the Holders (as defined
herein) to purchase the Capital Securities, the Guarantor desires irrevocably
and unconditionally to agree, to the extent set forth in this Guarantee, to pay
to the Holders of Capital Securities the Guarantee Payments (as defined herein)
and to make certain other payments on the terms and conditions set forth
herein;

 

NOW, THEREFORE, in consideration of the purchase by
each Holder of the Capital Securities, which purchase the Guarantor hereby
agrees shall benefit the Guarantor, the Guarantor executes and delivers this
Guarantee for the benefit of the Holders.

 

ARTICLE
I

 

DEFINITIONS AND
INTERPRETATION

 

Section
1.1            Definitions and Interpretation. In
this Guarantee, unless the context otherwise requires:

 

(a)           capitalized terms used in this
Guarantee but not defined in the preamble above have the respective meanings
assigned to them in this Section 1.1;

 

(b)           a term defined anywhere in this
Guarantee has the same meaning throughout;

 

(c)           all references to “the Guarantee” or
“this Guarantee” are to this Guarantee as modified, supplemented or amended
from time to time;

 

(d)           all references in this Guarantee to
“Articles” or “Sections” are to Articles or Sections of this Guarantee, unless
otherwise specified;

 

(e)           terms defined in the Declaration as
at the date of execution of this Guarantee have the same meanings when used in
this Guarantee, unless otherwise defined in this Guarantee or unless the
context otherwise requires; and

 

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(f)            a reference to the singular includes
the plural and vice versa.

 

“Affiliate” has the same meaning as given to
that term in Rule 405 of the Securities Act of 1933, as amended, or any
successor rule thereunder.

 

“Beneficiaries” means any Person to whom the
Issuer is or hereafter becomes indebted or liable.

 

“Capital Securities” has the meaning set forth
in the recitals to this Guarantee.

 

“Common Securities” means the common securities
issued by the Issuer to the Guarantor pursuant to the Declaration.

 

“Corporate Trust Office” means the office of
the Guarantee Trustee at which the corporate trust business of the Guarantee
Trustee shall, at any particular time, be principally administered, which
office at the date of execution of this Guarantee is located at 225 Asylum
Street, Goodwin Square, Hartford, Connecticut 06103.

 

“Covered Person” means any Holder of Capital
Securities.

 

“Debentures” means the debt securities of the
Guarantor designated the Floating Rate Junior Subordinated Deferrable Interest
Debentures due 2033 held by the Institutional Trustee (as defined in the
Declaration) of the Issuer.

 

“Declaration Event of Default” means an “Event
of Default” as defined in the Declaration.

 

“Event of Default” has the meaning set forth in
Section 2.4(a).

 

“Guarantee Payments” means the following
payments or distributions, without duplication, with respect to the Capital
Securities, to the extent not paid or made by the Issuer: (i) any accrued and
unpaid Distributions (as defined in the Declaration) which are required to be
paid on such Capital Securities to the extent the Issuer shall have funds
available therefor, (ii) the Redemption Price to the extent the Issuer has
funds available therefor, with respect to any Capital Securities called for
redemption by the Issuer, (iii) upon a voluntary or involuntary liquidation,
dissolution, winding-up or termination of the Issuer (other than in connection
with the distribution of Debentures to the Holders of the Capital Securities in
exchange therefor as provided in the Declaration), the lesser of (a) the
aggregate of the liquidation amount and all accrued and unpaid Distributions on
the Capital Securities to the date of payment, to the extent the Issuer shall
have funds available therefor, and (b) the amount of assets of the Issuer
remaining available for distribution to Holders in liquidation of the Issuer
(in either case, the “Liquidation Distribution”).

 

“Guarantee Trustee” means U.S. Bank National
Association, until a Successor Guarantee Trustee has been appointed and has
accepted such appointment pursuant to the terms of this Guarantee and
thereafter means each such Successor Guarantee Trustee.

 

“Guarantor” means Main Street Banks, Inc. and
each of its successors and assigns.

 

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“Holder” means any holder, as registered on the
books and records of the Issuer, of any Capital Securities; provided, however,
that, in determining whether the Holders of the requisite percentage of Capital
Securities have given any request, notice, consent or waiver hereunder,
“Holder” shall not include the Guarantor or any Affiliate of the Guarantor.

 

“Indemnified Person” means the Guarantee
Trustee, any Affiliate of the Guarantee Trustee, or any officers, directors,
shareholders, members, partners, employees, representatives, nominees,
custodians or agents of the Guarantee Trustee.

 

“Indenture” means the Indenture dated as of the
date hereof between the Guarantor and U.S. Bank National Association, not in
its individual capacity but solely as trustee, and any indenture supplemental
thereto pursuant to which the Debentures are to be issued to the institutional
trustee of the Issuer.

 

“Issuer” has the meaning set forth in the
opening paragraph to this Guarantee.

 

“Liquidation Distribution” has the meaning set
forth in the definition of “Guarantee Payments” herein.

 

“Majority in liquidation amount of the Capital
Securities” means Holder(s) of outstanding Capital Securities, voting
together as a class, but separately from the holders of Common Securities, of more
than 50% of the aggregate liquidation amount (including the stated amount that
would be paid on redemption, liquidation or otherwise, plus accrued and unpaid
Distributions to the date upon which the voting percentages are determined) of
all Capital Securities then outstanding.

 

“Obligations” means any costs, expenses or
liabilities (but not including liabilities related to taxes) of the Issuer
other than obligations of the Issuer to pay to holders of any Trust Securities
the amounts due such holders pursuant to the terms of the Trust Securities.

 

“Officer’s Certificate” means, with respect to
any Person, a certificate signed by one Authorized Officer of such Person.  Any Officer’s Certificate delivered with
respect to compliance with a condition or covenant provided for in this
Guarantee shall include:

 

(a)           a
statement that each officer signing the Officer’s Certificate has read the

 

(b)           covenant
or condition and the definitions relating thereto;

 

(c)           a
brief statement of the nature and scope of the examination or investigation
undertaken by each officer in rendering the Officer’s Certificate;

 

(d)           a
statement that each such officer has made such examination or investigation as,
in such officer’s opinion, is necessary to enable such officer to express an informed
opinion as to whether or not such covenant or condition has been complied with;
and

 

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

 

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“Person” means a legal person, including any
individual, corporation, estate, partnership, joint venture, association, joint
stock company, limited liability company, trust, unincorporated association, or
government or any agency or political subdivision thereof, or any other entity
of whatever nature.

 

“Redemption Price” has the meaning set forth in
the Indenture.

 

“Responsible Officer” means, with respect to
the Guarantee Trustee, any officer within the Corporate Trust Office of the
Guarantee Trustee including any Vice President, Assistant Vice President,
Secretary, Assistant Secretary or any other officer of the Guarantee Trustee
customarily performing functions similar to those performed by any of the above
designated officers and also, with respect to a particular corporate trust
matter, any other officer to whom such matter is referred because of that
officer’s knowledge of and familiarity with the particular subject.

 

“Special Event” has the meaning set forth in
the Indenture.

 

“Successor Guarantee Trustee” means a successor
Guarantee Trustee possessing the qualifications to act as Guarantee Trustee
under Section 3.1.

 

“Trust Indenture Act” means the Trust Indenture
Act of 1939, as amended from time to time, or any successor legislation.

 

“Trust Securities” means the Common Securities
and the Capital Securities.

 

ARTICLE
II

 

POWERS, DUTIES AND
RIGHTS OF GUARANTEE TRUSTEE

 

Section
2.1            Powers and Duties of the Guarantee Trustee.

 

(a)           This Guarantee shall be held by the
Guarantee Trustee for the benefit of the Holders of the Capital Securities, and
the Guarantee Trustee shall not transfer this Guarantee to any Person except a
Holder of Capital Securities exercising his or her rights pursuant to Section
4.4(b) or to a Successor Guarantee Trustee on acceptance by such Successor
Guarantee Trustee of its appointment to act as Successor Guarantee
Trustee.  The right, title and interest
of the Guarantee Trustee shall automatically vest in any Successor Guarantee Trustee,
and such vesting and cessation of title shall be effective whether or not
conveyancing documents have been executed and delivered pursuant to the
appointment of such Successor Guarantee Trustee.

 

(b)           If an Event of Default actually known
to a Responsible Officer of the Guarantee Trustee has occurred and is
continuing, the Guarantee Trustee shall enforce this Guarantee for the benefit
of the Holders of the Capital Securities.

 

(c)           The Guarantee Trustee, before the
occurrence of any Event of Default and after curing all Events of Default that
may have occurred, shall undertake to perform only such duties as are
specifically set forth in this Guarantee, and no implied covenants shall be
read into this Guarantee against the Guarantee Trustee.  In case an Event of Default has occurred
(that has not

 

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been waived pursuant to Section 2.4) and is
actually known to a Responsible Officer of the Guarantee Trustee, the Guarantee
Trustee shall exercise such of the rights and powers vested in it by this Guarantee,
and use the same degree of care and skill in its exercise thereof, as a prudent
person would exercise or use under the circumstances in the conduct of his or
her own affairs.

 

(d)           No provision of this Guarantee shall
be construed to relieve the Guarantee Trustee from liability for its own
negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

 

(i)            prior to the occurrence of any Event of Default and after
the curing or waiving of all such Events of Default that may have occurred:

 

(A)          the duties and obligations of the Guarantee Trustee shall
be determined solely by the express provisions of this Guarantee, and the
Guarantee Trustee shall not be liable except for the performance of such duties
and obligations as are specifically set forth in this Guarantee, and no implied
covenants or obligations shall be read into this Guarantee against the
Guarantee Trustee; and

 

(B)           in the absence of bad faith on the part of the Guarantee
Trustee, the Guarantee Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon any
certificates or opinions furnished to the Guarantee Trustee and conforming to
the requirements of this Guarantee; but in the case of any such certificates or
opinions that by any provision hereof are specifically required to be furnished
to the Guarantee Trustee, the Guarantee Trustee shall be under a duty to
examine the same to determine whether or not they conform to the requirements
of this Guarantee;

 

(ii)           the Guarantee Trustee shall not be liable for any error of
judgment made in good faith by a Responsible Officer of the Guarantee Trustee,
unless it shall be proved that such Responsible Officer of the Guarantee
Trustee or the Guarantee Trustee was negligent in ascertaining the pertinent
facts upon which such judgment was made;

 

(iii)          the Guarantee Trustee shall not be liable with respect to
any action taken or omitted to be taken by it in good faith in accordance with
the written direction of the Holders of not less than a Majority in liquidation
amount of the Capital Securities relating to the time, method and place of
conducting any proceeding for any remedy available to the Guarantee Trustee, or
exercising any trust or power conferred upon the Guarantee Trustee under this
Guarantee; and

 

(iv)          no provision of this Guarantee shall require the Guarantee
Trustee to expend or risk its own funds or otherwise incur personal financial
liability in the performance of any of its duties or in the exercise of any of
its rights or powers, if the Guarantee Trustee shall have reasonable grounds
for believing that the repayment of such funds is not reasonably assured to it
under the terms of this Guarantee or security and indemnity, reasonably
satisfactory to the Guarantee Trustee, against such risk or liability is not
reasonably assured to it.

 

Section
2.2            Certain Rights of Guarantee Trustee.

 

(a)           Subject to the provisions of Section
2.1:

 

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(i)            The Guarantee Trustee may conclusively rely, and shall be
fully protected in acting or refraining from acting upon, any resolution,
certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document believed by it to be genuine and to
have been signed, sent or presented by the proper party or parties.

 

(ii)           Any direction or act of the Guarantor contemplated by this
Guarantee shall be sufficiently evidenced by an Officer’s Certificate.

 

(iii)          Whenever, in the administration of this Guarantee, the
Guarantee Trustee shall deem it desirable that a matter be proved or
established before taking, suffering or omitting any action hereunder, the
Guarantee Trustee (unless other evidence is herein specifically prescribed)
may, in the absence of bad faith on its part, request and conclusively rely
upon an Officer’s Certificate of the Guarantor which, upon receipt of such
request, shall be promptly delivered by the Guarantor.

 

(iv)          The Guarantee Trustee shall have no duty to see to any
recording, filing or registration of any instrument (or any re-recording,
refiling or re-registration thereof).

 

(v)           The Guarantee Trustee may consult with counsel of its
selection, and the advice or opinion of such counsel with respect to legal
matters shall be full and complete authorization and protection in respect of
any action taken, suffered or omitted by it hereunder in good faith and in
accordance with such advice or opinion. 
Such counsel may be counsel to the Guarantor or any of its Affiliates
and may include any of its employees. 
The Guarantee Trustee shall have the right at any time to seek
instructions concerning the administration of this Guarantee from any court of
competent jurisdiction.

 

(vi)          The Guarantee Trustee shall be under no obligation to
exercise any of the rights or powers vested in it by this Guarantee at the
request or direction of any Holder, unless such Holder shall have provided to
the Guarantee Trustee such security and indemnity, reasonably satisfactory to
the Guarantee Trustee, against the costs, expenses (including attorneys’ fees
and expenses and the expenses of the Guarantee Trustee’s agents, nominees or
custodians) and liabilities that might be incurred by it in complying with such
request or direction, including such reasonable advances as may be requested by
the Guarantee Trustee; provided, however, that nothing contained
in this Section 2.2(a)(vi) shall relieve the Guarantee Trustee, upon the
occurrence of an Event of Default, of its obligation to exercise the rights and
powers vested in it by this Guarantee.

 

(vii)         The Guarantee Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of indebtedness or other paper or
document, but the Guarantee Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see fit.

 

(viii)        The Guarantee Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through
agents, nominees, custodians or

 

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attorneys, and the Guarantee Trustee shall
not be responsible for any misconduct or negligence on the part of any agent or
attorney appointed with due care by it hereunder.

 

(ix)           Any action taken by the Guarantee Trustee or its  agents
hereunder shall bind the Holders of the Capital Securities, and the signature
of the Guarantee Trustee or its agents alone shall be sufficient and effective
to perform any such action.  No third
party shall be required to inquire as to the authority of the Guarantee Trustee
to so act or as to its compliance with any of the terms and provisions of this
Guarantee, both of which shall be conclusively evidenced by the Guarantee
Trustee’s or its agent’s taking such action.

 

(x)            Whenever in the administration of this Guarantee the
Guarantee Trustee shall deem it desirable to receive instructions with respect
to enforcing any remedy or right or taking any other action hereunder, the
Guarantee Trustee (i) may request instructions from the Holders of a Majority
in liquidation amount of the Capital Securities, (ii) may refrain from
enforcing such remedy or right or taking such other action until such
instructions are received, and (iii) shall be protected in conclusively relying
on or acting in accordance with such instructions.

 

(xi)           The Guarantee Trustee shall not be liable for any action
taken, suffered, or omitted to be taken by it in good faith, without
negligence, and reasonably believed by it to be authorized or within the
discretion or rights or powers conferred upon it by this Guarantee.

 

No provision of this Guarantee shall be deemed to
impose any duty or obligation on the Guarantee Trustee to perform any act or
acts or exercise any right, power, duty or obligation conferred or imposed on
it, in any jurisdiction in which it shall be illegal or in which the Guarantee
Trustee shall be unqualified or incompetent in accordance with applicable law
to perform any such act or acts or to exercise any such right, power, duty or
obligation.  No permissive power or
authority available to the Guarantee Trustee shall be construed to be a duty.

 

Section
2.3            Not Responsible for
Recitals or Issuance of Guarantee.  The recitals contained in this Guarantee
shall be taken as the statements of the Guarantor, and the Guarantee Trustee
does not assume any responsibility for their correctness.  The Guarantee Trustee makes no
representation as to the validity or sufficiency of this Guarantee.

 

Section
2.4            Events of Default; Waiver.

 

(a)           An Event of Default under this
Guarantee will occur upon the failure of the Guarantor to perform any of its
payment or other obligations hereunder.

 

(b)           The Holders of a Majority in
liquidation amount of the Capital Securities may, voting or consenting as a
class, on behalf of the Holders of all of the Capital Securities, waive any
past Event of Default and its consequences. 
Upon such waiver, any such Event of Default shall cease to exist, and
shall be deemed to have been cured, for every purpose of this Guarantee, but no
such waiver shall extend to any subsequent or other default or Event of Default
or impair any right consequent thereon.

 

8

 

Section
2.5            Events of Default; Notice.

 

(a)           The Guarantee
Trustee shall, within 90 days after the occurrence of an Event of Default,
transmit by mail, first class postage prepaid, to the Holders of the Capital
Securities and the Guarantor, notices of all Events of Default actually known
to a Responsible Officer of the Guarantee Trustee, unless such defaults have
been cured before the giving of such notice, provided, however,
that the Guarantee Trustee shall be protected in withholding such notice if and
so long as a Responsible Officer of the Guarantee Trustee in good faith
determines that the withholding of such notice is in the interests of the
Holders of the Capital Securities.

 

(b)           The Guarantee Trustee shall not be
deemed to have knowledge of any Event of Default unless the Guarantee Trustee
shall have received written notice from the Guarantor or a Holder of the
Capital Securities (except in the case of a payment default), or a Responsible
Officer of the Guarantee Trustee charged with the administration of this
Guarantee shall have obtained actual knowledge thereof.

 

ARTICLE
III

 

GUARANTEE TRUSTEE

 

Section
3.1            Guarantee Trustee; Eligibility.

 

(a)           There shall at all times be a
Guarantee Trustee which shall:

 

(i)            not be an Affiliate of the Guarantor, and

 

(ii)           be a corporation organized and doing business under the
laws of the United States of America or any State or Territory thereof or of
the District of Columbia, or Person authorized under such laws to exercise
corporate trust powers, having a combined capital and surplus of at least 50
million U.S. dollars ($50,000,000), and subject to supervision or examination
by Federal, State, Territorial or District of Columbia authority.  If such corporation publishes reports of
condition at least annually, pursuant to law or to the requirements of the
supervising or examining authority referred to above, then, for the purposes of
this Section 3.1(a)(ii), 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.

 

(b)           If at any time the Guarantee Trustee
shall cease to be eligible to so act under Section 3.1(a), the Guarantee
Trustee shall immediately resign in the manner and with the effect set out in
Section 3.2(c).

 

(c)           If the Guarantee Trustee has or shall
acquire any “conflicting interest” within the meaning of Section 310(b) of the
Trust Indenture Act, the Guarantee Trustee shall either eliminate such interest
or resign to the extent and in the manner provided by, and subject to this
Guarantee.

 

9

 

Section
3.2            Appointment, Removal and Resignation of Guarantee
Trustee.

 

(a)           Subject to Section
3.2(b), the Guarantee Trustee may be appointed or removed without cause at any
time by the Guarantor except during an Event of Default.

 

(b)           The Guarantee Trustee shall not be
removed in accordance with Section 3.2(a) until a Successor Guarantee Trustee
has been appointed and has accepted such appointment by written instrument
executed by such Successor Guarantee Trustee and delivered to the Guarantor.

 

(c)           The Guarantee Trustee appointed to
office shall hold office until a Successor Guarantee Trustee shall have been
appointed or until its removal or resignation. 
The Guarantee Trustee may resign from office (without need for prior or
subsequent accounting) by an instrument in writing executed by the Guarantee
Trustee and delivered to the Guarantor, which resignation shall not take effect
until a Successor Guarantee Trustee has been appointed and has accepted such
appointment by an instrument in writing executed by such Successor Guarantee Trustee
and delivered to the Guarantor and the resigning Guarantee Trustee.

 

(d)           If no Successor Guarantee Trustee
shall have been appointed and accepted appointment as provided in this Section
3.2 within 60 days after delivery of an instrument of removal or resignation,
the Guarantee Trustee resigning or being removed may petition any court of
competent jurisdiction for appointment of a Successor Guarantee Trustee.  Such court may thereupon, after prescribing
such notice, if any, as it may deem proper, appoint a Successor Guarantee
Trustee.

 

(e)           No Guarantee Trustee shall be liable
for the acts or omissions to act of any Successor Guarantee Trustee.

 

(f)            Upon termination of this Guarantee
or removal or resignation of the Guarantee Trustee pursuant to this Section
3.2, the Guarantor shall pay to the Guarantee Trustee all amounts owing to the
Guarantee Trustee under Sections 7.2 and 7.3 accrued to the date of such
termination, removal or resignation.

 

ARTICLE
IV

 

GUARANTEE

 

Section
4.1            Guarantee.

 

(a)           The Guarantor irrevocably and
unconditionally agrees to pay in full to the Holders the Guarantee Payments
(without duplication of amounts theretofore paid by the Issuer), as and when
due, regardless of any defense (except the defense of payment by the Issuer),
right of set-off or counterclaim that the Issuer may have or assert.  The Guarantor’s obligation to make a
Guarantee Payment may be satisfied by direct payment of the required amounts by
the Guarantor to the Holders or by causing the Issuer to pay such amounts to
the Holders.

 

(b)           The Guarantor hereby also agrees to
assume any and all Obligations of the Issuer and in the event any such
Obligation is not so assumed, subject to the terms and conditions

 

10

 

hereof, the Guarantor hereby irrevocably and
unconditionally guarantees to each Beneficiary the full payment, when and as
due, of any and all Obligations to such Beneficiaries.  This Guarantee is intended to be for the benefit
of, and to be enforceable by, all such Beneficiaries, whether or not such
Beneficiaries have received notice hereof.

 

Section
4.2            Waiver of Notice and
Demand.  The Guarantor hereby waives notice of acceptance of this Guarantee
and of any liability to which it applies or may apply, presentment, demand for
payment, any right to require a proceeding first against the Issuer or any
other Person before proceeding against the Guarantor, protest, notice of
nonpayment, notice of dishonor, notice of redemption and all other notices and
demands.

 

Section
4.3            Obligations Not Affected.
The obligations, covenants, agreements and duties of the Guarantor under this
Guarantee shall in no way be affected or impaired by reason of the happening
from time to time of any of the following:

 

(a)           the release or waiver, by operation
of law or otherwise, of the performance or observance by the Issuer of any
express or implied agreement, covenant, term or condition relating to the  Capital
Securities to be performed or observed by the Issuer;

 

(b)           the extension of time for the payment
by the Issuer of all or any portion of the Distributions, Redemption Price,
Special Redemption Price, Liquidation Distribution or any other sums payable
under the terms of the Capital Securities or the extension of time for the
performance of any other obligation under, arising out of or in connection
with, the Capital Securities (other than an extension of time for payment of
Distributions, Redemption Price, Special Redemption Price, Liquidation
Distribution or other sum payable that results from the extension of any
interest payment period on the Debentures or any extension of the maturity date
of the Debentures permitted by the Indenture);

 

(c)           any failure, omission, delay or lack
of diligence on the part of the Holders to enforce, assert or exercise any
right, privilege, power or remedy conferred on the Holders pursuant to the
terms of the Capital Securities, or any action on the part of the Issuer
granting indulgence or extension of any kind;

 

(d)           the voluntary or involuntary
liquidation, dissolution, sale of any collateral, receivership, insolvency,
bankruptcy, assignment for the benefit of creditors, reorganization,
arrangement. composition or readjustment of debt of, or other similar
proceedings affecting, the Issuer or any of the assets of the Issuer;

 

(e)           any invalidity of, or defect or
deficiency in, the Capital Securities;

 

(f)            the settlement or compromise of any
obligation guaranteed hereby or hereby incurred; or

 

(g)           any other circumstance whatsoever
that might otherwise constitute a legal or equitable discharge or defense of a
guarantor, it being the intent of this Section 4.3 that the obligations of the
Guarantor hereunder shall be absolute and unconditional under any and all
circumstances.

 

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There shall be no obligation of the Holders to give
notice to, or obtain consent of, the Guarantor with respect to the happening of
any of the foregoing.

 

Section
4.4            Rights of Holders.

 

(a)           The Holders of a Majority in
liquidation amount of the Capital Securities have the right to direct the time,
method and place of conducting any proceeding for any remedy available to the
Guarantee Trustee in respect of this Guarantee or to direct the exercise of any
trust or power conferred upon the Guarantee Trustee under this Guarantee; provided,
however, that (subject to Section 2.1) the Guarantee Trustee shall have the
right to decline to follow any such direction if the Guarantee Trustee being
advised by counsel determines that the action or proceeding so directed may not
lawfully be taken or if the Guarantee Trustee in good faith by its board of
directors or trustees, executive committees or a trust committee of directors
or trustees and/or Responsible Officers shall determine that the action or
proceedings so directed would involve the Guarantee Trustee in personal
liability.

 

(b)           Any Holder of Capital Securities may
institute a legal proceeding directly against the Guarantor to enforce the
Guarantee Trustee’s rights under this Guarantee, without first instituting a
legal proceeding against the Issuer, the Guarantee Trustee or any other
Person.  The Guarantor waives any right
or remedy to require that any such action be brought first against the Issuer,
the Guarantee Trustee or any other Person before so proceeding directly against
the Guarantor.

 

Section
4.5            Guarantee of Payment.  This Guarantee creates a guarantee of
payment and not of collection.

 

Section
4.6            Subrogation.  The Guarantor shall
be subrogated to all (if any) rights of the Holders of Capital Securities
against the Issuer in respect of any amounts paid to such Holders by the
Guarantor under this Guarantee; provided, however, that the Guarantor
shall not (except to the extent required by mandatory provisions of law) be
entitled to enforce or exercise any right that it may acquire by way of
subrogation or any indemnity, reimbursement or other agreement, in all cases as
a result of payment under this Guarantee, if, after giving effect to any such
payment, any amounts are due and unpaid under this Guarantee.  If any amount shall be paid to the Guarantor
in violation of the preceding sentence, the Guarantor agrees to hold such
amount in trust for the Holders and to pay over such amount to the Holders.

 

Section
4.7            Independent Obligations.  The Guarantor
acknowledges that its obligations hereunder are independent of the obligations
of the Issuer with respect to the Capital Securities and that the Guarantor
shall be liable as principal and as debtor hereunder to make Guarantee Payments
pursuant to the terms of this Guarantee notwithstanding the occurrence of any
event referred to in subsections (a) through (g), inclusive, of Section 4.3
hereof.

 

Section
4.8            Enforcement by a
Beneficiary.  A
Beneficiary may enforce the obligations of the Guarantor contained in Section
4.1(b) directly against the Guarantor and the Guarantor waives any right or
remedy to require that any action be brought against the Issuer or any other
person or entity before proceeding against the Guarantor.  The Guarantor shall be subrogated to all
rights (if any) of any Beneficiary against the Issuer in respect of any amounts

 

12

 

paid to the Beneficiaries by the Guarantor
under this Guarantee, provided, however, that the Guarantor shall not
(except to the extent required by mandatory provisions of law) be entitled to
enforce or exercise any rights that it may acquire by way of subrogation or any
indemnity, reimbursement or other agreement, in all cases as a result of
payment under this Guarantee, if at the time of any such payment, and after
giving effect to such payment, any amounts are due and unpaid under this
Guarantee.

 

ARTICLE
V

 

LIMITATION OF
TRANSACTIONS; SUBORDINATION

 

Section
5.1            Limitation of
Transactions. 
So long as any Capital Securities remain outstanding, if (a) there shall
have occurred and be continuing an Event of Default or a Declaration Event of
Default or (b) the Guarantor shall have selected an Extension Period as
provided in the Declaration and such period, or any extension thereof, shall
have commenced and be continuing, then the Guarantor shall not and shall not
permit any Affiliate to (x) declare or pay any dividends or distributions on,
or redeem, purchase, acquire, or make a liquidation payment with respect to, any
of the Guarantor’s or such Affiliate’s capital stock (other than payments of
dividends or distributions to the Guarantor) or make any guarantee payments
with respect to the foregoing or (y) make any payment of principal of or
interest or premium, if any, on or repay, repurchase or redeem any debt
securities of the Guarantor or any Affiliate that rank pari passu in all respects
with or junior in interest to the Debentures (other than, with respect to
clauses (x) and (y) above, (i) repurchases, redemptions or other acquisitions
of shares of capital stock of the Guarantor in connection with any employment
contract, benefit plan or other similar arrangement with or for the benefit of
one or more employees, officers, directors or consultants, in connection with a
dividend reinvestment or stockholder stock purchase plan or in connection with
the issuance of capital stock of the Guarantor (or securities convertible into
or exercisable for such capital stock) as consideration in an acquisition
transaction entered into prior to the occurrence of the Event of Default,
Declaration Event of Default or Extension Period, as applicable, (ii) as a
result of any exchange or conversion of any class or series of the Guarantor’s
capital stock (or any capital stock of a subsidiary of the Guarantor) for any
class or series of the Guarantor’s capital stock or of any class or series of
the Guarantor’s indebtedness for any class or series of the Guarantor’s capital
stock, (iii) the purchase of fractional interests in shares of the Guarantor’s
capital stock pursuant to the conversion or exchange provisions of such capital
stock or the security being converted or exchanged, (iv) any declaration of a
dividend in connection with any stockholders’ rights plan, or the issuance of
rights, stock or other property under any stockholders’ rights plan, or the
redemption or repurchase of rights pursuant thereto, (v) any dividend in the
form of stock, warrants, options or other rights where the dividend stock or
the stock issuable upon exercise of such warrants, options or other rights is
the same stock as that on which the dividend is being paid or ranks pari passu with
or junior to such stock and any cash payments in lieu of fractional shares
issued in connection therewith, or (vi) payments under this Guarantee).

 

Section
5.2            Ranking.  This Guarantee will constitute an unsecured
obligation of the Guarantor and will rank subordinate and junior in right of
payment to all present and future Senior Indebtedness (as defined in the
Indenture) of the Guarantor.  By their
acceptance thereof,

 

13

 

each Holder of Capital Securities agrees to
the foregoing provisions of this Guarantee and the other terms set forth
herein.

 

The right of the Guarantor to participate in any
distribution of assets of any of its subsidiaries upon any such subsidiary’s
liquidation or reorganization or otherwise is subject to the prior claims of
creditors of that subsidiary, except to the extent the Guarantor may itself be
recognized as a creditor of that subsidiary. 
Accordingly, the Guarantor’s obligations under this Guarantee will be
effectively subordinated to all existing and future liabilities of the
Guarantor’s subsidiaries, and claimants should look only to the assets of the
Guarantor for payments hereunder.  This
Guarantee does not limit the incurrence or issuance of other secured or
unsecured debt of the Guarantor, including Senior Indebtedness of the
Guarantor, under any indenture that the Guarantor may enter into in the future or
otherwise.

 

ARTICLE
VI

 

TERMINATION

 

Section
6.1            Termination.  This Guarantee shall terminate  upon the later of (i) full payment of the
Redemption Price of all Capital Securities then outstanding, (ii) upon the
distribution of all of the Debentures to the Holders of all of the Capital
Securities, and (iii) upon full payment of the amounts payable in accordance
with the Declaration upon dissolution of the Issuer.  This Guarantee will continue to be effective or will be
reinstated, as the case may be, if at any time any Holder of Capital Securities
must restore payment of any sums paid under the Capital Securities or under
this Guarantee.

 

ARTICLE
VII

 

INDEMNIFICATION

 

Section
7.1            Exculpation.

 

(a)           No Indemnified Person shall be
liable, responsible or accountable in damages or otherwise to the Guarantor or
any Covered Person for any loss, damage or claim incurred by reason of any act
or omission performed or omitted by such Indemnified Person in good faith in
accordance with this Guarantee and in a manner that such Indemnified Person
reasonably believed to be within the scope of the authority conferred on such
Indemnified Person by this Guarantee or by law, except that an Indemnified
Person shall be liable for any such loss, damage or claim incurred by reason of
such Indemnified Person’s negligence or willful misconduct with respect to such
acts or omissions.

 

(b)           An Indemnified Person shall be fully
protected in relying in good faith upon the records of the Issuer or the
Guarantor and upon such information, opinions, reports or statements presented
to the Issuer or the Guarantor by any Person as to matters the Indemnified
Person reasonably believes are within such other Person’s professional or
expert competence and who, if selected by such Indemnified Person, has been
selected with reasonable care by such Indemnified Person, including
information, opinions, reports or statements as to the value and amount of the
assets, liabilities, profits, losses, or any other facts pertinent to the
existence and

 

14

 

amount of assets from which Distributions to
Holders of Capital Securities might properly be paid.

 

Section
7.2            Indemnification.

 

(a)           The Guarantor agrees to indemnify
each Indemnified Person for, and to hold each Indemnified Person harmless
against, any and all loss, liability, damage, claim or expense incurred without
negligence or willful misconduct on the part of the Indemnified Person, arising
out of or in connection with the acceptance or administration of the trust or
trusts hereunder, including, but not limited to, the costs and expenses
(including reasonable legal fees and expenses) of the Indemnified Person
defending itself against, or investigating, any claim or liability in
connection with the exercise or performance of any of the Indemnified Person’s
powers or duties hereunder.  The
obligation to indemnify as set forth in this Section 7.2 shall survive the
resignation or removal of the Guarantee Trustee and the termination of this
Guarantee.

 

(b)           Promptly after receipt by an
Indemnified Person under this Section 7.2 of notice of the commencement of any
action, such Indemnified Person will, if a claim in respect thereof is to be
made against the Guarantor under this Section 7.2, notify the Guarantor in writing
of the commencement thereof, but the failure so to notify the Guarantor (i)
will not relieve the Guarantor from liability under paragraph (a) above unless
and to the extent that the Guarantor did not otherwise learn of such action and
such failure results in the forfeiture by the Guarantor of substantial rights
and defenses and (ii) will not, in any event, relieve the Guarantor from any
obligations to any Indemnified Person other than the indemnification obligation
provided in paragraph(a) above.  The
Guarantor shall be entitled to appoint counsel of the Guarantor’s choice at the
Guarantor’s expense to represent the Indemnified Person in any action for which
indemnification is sought (in which case the Guarantor shall not thereafter be
responsible for the fees and expenses of any separate counsel retained by the
Indemnified Person or Persons except as set forth below); provided, however,
that such counsel shall be reasonably satisfactory to the Indemnified
Person.  Notwithstanding the Guarantor’s
election to appoint counsel to represent the Guarantor in an action, the
Indemnified Person shall have the right to employ separate counsel (including
local counsel), and the Guarantor shall bear the reasonable fees, costs and
expenses of such separate counsel if (i) the use of counsel chosen by the
Guarantor to represent the Indemnified Person would present such counsel with a
conflict of interest, (ii) the actual or potential defendants in, or targets
of, any such action include both the Indemnified Person and the Guarantor and
the Indemnified Person shall have reasonably concluded that there may be legal
defenses available to it and/or other Indemnified Person(s) which are different
from or additional to those available to the Guarantor, (iii) the Guarantor shall
not have employed counsel satisfactory to the Indemnified Person to represent
the Indemnified Person within a reasonable time after notice of the institution
of such action or (iv) the Guarantor shall authorize the Indemnified Person to
employ separate counsel at the expense of the Guarantor.  The Guarantor will not, without the prior
written consent of the Indemnified Persons, settle or compromise or consent to
the entry of any judgment with respect to any pending or threatened claim,
action, suit or proceeding in respect of which indemnification or contribution
may be sought hereunder (whether or not the Indemnified Persons are actual or
potential parties to such claim or action) unless such settlement, compromise
or consent includes an unconditional release of each Indemnified Person from
all liability arising out of such claim, action, suit or proceeding.

 

15

 

Section
7.3            Compensation, Reimbursement of Expenses.  The Guarantor agrees:

 

(a)           to pay to the Guarantee Trustee from
time to time such compensation for all services rendered by it hereunder as the
parties shall agree to from time to time (which compensation shall not be
limited by any provision of law in regard to the compensation of a trustee of an
express trust); and

 

(b)           except as otherwise expressly
provided herein, to reimburse the Guarantee Trustee upon request for all
reasonable expenses, disbursements and advances incurred or made by it in
accordance with any provision of this Guarantee (including the reasonable
compensation and the expenses and disbursements of its agents and counsel),
except any such expense, disbursement or advance as may be attributable to its
negligence or willful misconduct.

 

The provisions of this Section 7.3 shall survive the
resignation or removal of the Guarantee Trustee and the termination of this
Guarantee.

 

ARTICLE
VIII

 

MISCELLANEOUS

 

Section
8.1            Successors and Assigns.  All guarantees and agreements contained in
this Guarantee shall bind the successors, assigns, receivers, trustees and
representatives of the Guarantor and shall inure to the benefit of the Holders
of the Capital Securities then outstanding. 
Except in connection with any merger or consolidation of the Guarantor
with or into another entity or any sale, transfer or lease of the Guarantor’s
assets to another entity, in each case, to the extent permitted under the
Indenture, the Guarantor may not assign its rights or delegate its obligations
under this Guarantee without the prior approval of the Holders of at least a
Majority in liquidation amount of the Capital Securities.

 

Section
8.2            Amendments.  Except with respect
to any changes that do not adversely affect the rights of Holders of the
Capital Securities in any material respect (in which case no consent of Holders
will be required), this Guarantee may be amended only with the prior approval
of the Holders of not less than a Majority in liquidation amount of the Capital
Securities.  The provisions of the Declaration
with respect to amendments thereof apply to the giving of such approval.

 

Section
8.3            Notices.  All notices
provided for in this Guarantee shall be in writing, duly signed by the party
giving such notice, and shall be delivered, telecopied or mailed by first class
mail, as follows:

 

(a)           If given to the Guarantee Trustee, at
the Guarantee Trustee’s mailing address set forth below (or such other address
as the Guarantee Trustee may give notice of to the Holders of the Capital
Securities and the Guarantor):

 

16

 

U.S. Bank National Association

225 Asylum Street, Goodwin Square

Hartford, Connecticut  06103

Attention:              Corporate
Trust Department

Telecopy:              860-244-1889

 

With a copy
to:

 

U.S. Bank
National Association

P.O. Box 778

Boston,
Massachusetts 02102-0778

Attention:              Earl W. Dennison, Corporate Trust
Department

Telecopy:              617-662-1464

 

(b)           If given to the Guarantor, at the
Guarantor’s mailing address set forth below (or such other address as the
Guarantor may give notice of to the Holders of the Capital Securities and to
the Guarantee Trustee):

 

Main Street
Banks, Inc.

676 Chastain
Road

P.O. Box 2147

Kennesaw,
Georgia 30061

Attention:  Robert D. McDermott

Telecopy:  770-788-2183

 

(c)           If given to any Holder of the Capital
Securities, at the address set forth on the books and records of the Issuer.

 

All such notices shall be deemed to have been given
when received in person, telecopied with receipt confirmed, or mailed by first
class mail, postage prepaid, except that if a notice or other document is refused
delivery or cannot be delivered because of a changed address of which no notice
was given, such notice or other document shall be deemed to have been delivered
on the date of such refusal or inability to deliver.

 

Section
8.4            Benefit.  This Guarantee is
solely for the benefit of the Holders of the Capital Securities and, subject to
Section 2.1(a), is not separately transferable from the Capital Securities.

 

Section
8.5            Governing Laws.  THIS GUARANTEE SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF, NEW
YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF (OTHER THAN SECTION
5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

 

Section
8.6            Counterparts.  This Guarantee may be executed in one or
more counterparts, each of which shall be an original, but all of which taken
together shall constitute one and the same instrument.

 

17

 

Section
8.7            Separability.  In case one or more of the provisions
contained in this Guarantee shall for any reason be held to be invalid, illegal
or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions of this Guarantee, but
this Guarantee shall be construed as if such invalid or illegal or
unenforceable provision had never been contained herein.

 

Signatures appear on
the following page

 

18

 

THIS GUARANTEE is executed as of the day and year
first above written.

 

	
   

  	
  MAIN STREET
  BANKS, INC., as Guarantor

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert D. McDermott

  
	
   

  	
   

  	
  Name: Robert D. McDermott

  
	
   

  	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
  U.S. BANK
  NATIONAL ASSOCIATION,

  as Guarantee Trustee

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Earl W. Dennison, Jr.

  
	
   

  	
   

  	
  Name: Earl W. Dennison, Jr.

  
	
   

  	
   

  	
  Title: Vice President

  

 

19<PAGE>

                                                                     Exhibit 4.1

===============================================================================

                 CHASE MANHATTAN BANK USA, NATIONAL ASSOCIATION,

                             as Seller and Servicer

                                       and

                     CHASE MANHATTAN AUTO OWNER TRUST 2003-A

                                    as Issuer

                          SALE AND SERVICING AGREEMENT

                            Dated as of May 22, 2003

===============================================================================

<PAGE>

                         TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                                        Page
                                                                                                        ----
<S>                                                                                                     <C>
                             ARTICLE I

                            DEFINITIONS

SECTION 1.1 Definitions....................................................................................1
SECTION 1.2 Usage of Terms................................................................................22
SECTION 1.3 Simple Interest Method; Methods of
            Allocating Payments or Receivables;
            Allocations...................................................................................22

                            ARTICLE II

                     CONVEYANCE OF RECEIVABLES

SECTION 2.1 Conveyance of Receivables.....................................................................22
SECTION 2.2 Closing.......................................................................................23

                            ARTICLE III

                          THE RECEIVABLES

SECTION 3.1 Representations and Warranties of Seller;
            Conditions Relating to Receivables............................................................23
SECTION 3.2 Repurchase Upon Breach or Failure of a Condition..............................................27
SECTION 3.3 Custody of Receivable Files...................................................................28
SECTION 3.4 Duties of Servicer as Custodian...............................................................28
SECTION 3.5 Instructions; Authority to Act................................................................29
SECTION 3.6 Custodian's Indemnification...................................................................29
SECTION 3.7 Effective Period and Termination..............................................................30

                            ARTICLE IV

            ADMINISTRATION AND SERVICING OF RECEIVABLES

SECTION 4.1 Duties of Servicer............................................................................30
SECTION 4.2 Collection of Receivable Payments; Refinancing................................................31
SECTION 4.3 Realization Upon Receivables..................................................................31
SECTION 4.4 Maintenance of Security Interests in Financed Vehicles........................................32
SECTION 4.5 Covenants of Servicer.........................................................................32
SECTION 4.6 Purchase of Receivables Upon Breach...........................................................33
SECTION 4.7 Servicing Fee.................................................................................33
SECTION 4.8 Servicer's Certificate........................................................................33
SECTION 4.9 Annual Statement as to Compliance.............................................................34
SECTION 4.10 Annual Audit Report..........................................................................34
SECTION 4.11 Access by Holders to Certain Documentation
             and Information Regarding Receivables........................................................35
SECTION 4.12 Reports to Holders and the Rating Agencies...................................................35
SECTION 4.13 Reports to the Securities and Exchange Commission............................................36

</TABLE>

                                       i

<PAGE>

<TABLE>
<CAPTION>

                                                                                                        Page
                                                                                                        ----
<S>                                                                                                     <C>
                             ARTICLE V

                     ACCOUNTS; DISTRIBUTIONS;
                 STATEMENTS TO CERTIFICATEHOLDERS

SECTION 5.1  Establishment of Collection Account and Note Distribution Account............................36
SECTION 5.2  Collections..................................................................................37
SECTION 5.3  [Reserved]...................................................................................37
SECTION 5.4  Additional Deposits..........................................................................37
SECTION 5.5  Distributions................................................................................38
SECTION 5.6  Yield Supplement Account.....................................................................39
SECTION 5.7  Reserve Account..............................................................................40
SECTION 5.8  Net Deposits.................................................................................41
SECTION 5.9  Statements to Certificateholders and Noteholders.............................................41

                  ARTICLE VI

                  THE SELLER

SECTION 6.1  Representations of Seller....................................................................42
SECTION 6.2  Liability of Seller; Indemnities.............................................................43
SECTION 6.3  Merger or Consolidation of Seller............................................................44
SECTION 6.4  Limitation on Liability of Seller and Others.................................................44
SECTION 6.5  Seller May Own Notes and Certificates........................................................44

                  ARTICLE VII

                 THE SERVICER

SECTION 7.1  Representations of Servicer..................................................................45
SECTION 7.2  Liability of Servicer; Indemnities...........................................................46
SECTION 7.3  Merger or Consolidation of Servicer..........................................................47
SECTION 7.4  Limitation on Liability of Servicer and Others...............................................47
SECTION 7.5  Servicer Not To Resign.......................................................................48
SECTION 7.6  Delegation of Duties.........................................................................48

</TABLE>

                                       ii

<PAGE>

<TABLE>
<CAPTION>

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                                                                                                        ----
<S>                                                                                                     <C>
                 ARTICLE VIII

             EVENTS OF SERVICING TERMINATION

SECTION 8.1  Events of Servicing Termination..............................................................49
SECTION 8.2  Indenture Trustee to Act; Appointment of Successor Servicer..................................50
SECTION 8.3  Notification to Noteholders and Certificateholders...........................................51
SECTION 8.4  Waiver of Past Defaults......................................................................51

                  ARTICLE IX

                  TERMINATION

SECTION 9.1  Optional Purchase of All Receivables; Trust Termination......................................51

                   ARTICLE X

             MISCELLANEOUS PROVISIONS

SECTION 10.1 Amendment....................................................................................53
SECTION 10.2 Protection of Title to Owner Trust Estate....................................................54
SECTION 10.3 GOVERNING LAW................................................................................56
SECTION 10.4 Notices......................................................................................56
SECTION 10.5 Severability of Provisions...................................................................56
SECTION 10.6 Assignment...................................................................................56
SECTION 10.7 Certificates and Notes Nonassessable and Fully Paid..........................................57
SECTION 10.8 Third-Party Beneficiaries....................................................................57
SECTION 10.9 Assignment to Indenture Trustee..............................................................57
SECTION 10.10 Limitation of Liability of Owner Trustee and Indenture Trustee..............................57
SECTION 10.11 No Petition.................................................................................57
SECTION 10.12 Disclosure..................................................................................58
</TABLE>

                                      iii

<PAGE>

                                    SCHEDULES

Schedule A  - Schedule of Receivables
Schedule B  - Location of Receivable Files

                      EXHIBITS

Exhibit A   - Form of Servicer's Certificate
Exhibit B   - Form of Monthly Report
Exhibit C   - Form of Collection Account Control Agreement
Exhibit D   - Form of Reserve Account Control Agreement
Exhibit E   - Form of Yield Supplement Account Control Agreement

                                       iv

<PAGE>

         This SALE AND SERVICING AGREEMENT, dated as of May 22, 2003, (as
amended, supplemented or otherwise modified and in effect from time to time,
this "Agreement") is made between CHASE MANHATTAN BANK USA, NATIONAL
ASSOCIATION, a national banking association having its principal executive
offices located at 200 White Clay Center Drive, Newark, Delaware 19711 ("Chase
USA," the "Seller" or the "Servicer" in its respective capacities as such), and
CHASE MANHATTAN AUTO OWNER TRUST 2003-A, as issuer (the "Issuer").

                              W I T N E S S E T H :
                               - - - - - - - - - -

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

                                    ARTICLE I

                                   DEFINITIONS

         SECTION 1.1 Definitions. Whenever used in this Agreement, the following
words and phrases, unless the context otherwise requires, shall have the
following meanings:

         "Accrued Interest" on a Receivable, as of any date of determination,
means that amount of interest accrued on the Principal Balance at the related
Contract Rate but not paid by or on behalf of the Obligor.

         "Administration Agreement" means the Administration Agreement, dated as
of May 22, 2003, among the Issuer, the Administrator and the Indenture Trustee,
as the same may be amended and supplemented from time to time.

         "Administrator" means JPMorgan Chase Bank, a New York banking
corporation, as administrator, and its successors and assigns.

         "Administration Fee" means $1,000, the fee payable to the Administrator
on each Payment Date pursuant to Section 5.5(c) for services rendered pursuant
to the Administration Agreement.

         "Affiliate" means, with respect to any specified Person, any other
Person controlling or controlled by or under common control with such specified
Person. For purposes of this definition, "control" when used with respect to any
specified Person means the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms "controlling" and
"controlled" have meanings correlative to the foregoing. A Person shall not be
deemed to be an Affiliate of any specified Person solely because such other
Person has the contractual right or obligation to manage such specified Person
unless such other Person controls such specified Person through equity ownership
or otherwise.

<PAGE>

                                                                               2

         "Aggregate Net Losses" means, for any Payment Date, the amount equal to
(i) the aggregate Principal Balance of all Receivables that became Defaulted
Receivables during the related Collection Period minus (ii) the Liquidation
Proceeds allocable to principal collected during such Collection Period with
respect to any Defaulted Receivables.

         "Amount Financed" in respect of a Receivable means the amount advanced
under the Receivable toward the purchase price of the Financed Vehicle and
related costs.

         "Assertion" has the meaning specified in Section 4.10.

         "Authenticating Agent" has the meaning specified in Section 2.13 of the
Indenture and shall initially be the corporate trust office of JPMorgan Chase
Bank, and its successors and assigns in such capacity.

         "Authorized Officer" means (i) with respect to the Owner Trustee,
Indenture Trustee or Servicer, any officer of the Owner Trustee, Indenture
Trustee or Servicer who is authorized to act on behalf of the Owner Trustee,
Indenture Trustee or Servicer, as applicable, and who is identified as such on
the list of authorized officers delivered by each such party on the Closing Date
or (ii) with respect to the Issuer, any officer of the Owner Trustee who is
authorized to act on behalf of the Owner Trustee and who is identified as such
on the list of authorized officers delivered by the Owner Trustee on the Closing
Date.

         "Available Interest" means, for any Payment Date, the sum of (i) that
portion of Collections on the Receivables received during the related Collection
Period allocated to interest, (ii) the Yield Supplement Withdrawal Amount for
such Payment Date and (iii) that portion of the Repurchase Amounts received with
respect to the Repurchased Receivables repurchased by the Seller or purchased by
the Servicer during the related Collection Period that would have been treated
as Available Interest if the Obligor thereof had prepaid such Receivables in
full on the date as of which such Receivables were repurchased or purchased.

         "Available Principal" means, for any Payment Date, the sum of (i) that
portion of Collections on the Receivables received during the related Collection
Period allocated to the principal balance of the Receivables and (ii) that
portion of the Repurchase Amounts received with respect to the Repurchased
Receivables repurchased by the Seller or purchased by the Servicer that would
have been treated as Available Principal if the Obligor thereof had prepaid such
Receivables in full on the date as of which such Receivables were repurchased or
purchased.

         "Available Reserve Account Amount" shall mean, for each Payment Date,
an amount equal to the lesser of (i) the amount on deposit in the Reserve
Account and (ii) the Specified Reserve Account Balance with respect to such
Payment Date.

         "Average Delinquency Percentage" means for any Payment Date, the
average of the Delinquency Percentages for such Payment Date and the preceding
two (2) Payment Dates.

         "Average Net Loss Ratio" means for any Payment Date, the average of the
Net Loss Ratios for such Payment Date and the preceding two (2) Payment Dates.

         "Basic Documents" means this Agreement, the Certificate of Trust, the
Indenture, the Depository Agreements, the Securities Control Agreements, the
Trust Agreement, the Administration Agreement and other documents and
certificates delivered in connection therewith.

<PAGE>

                                                                               3

         "Book-Entry Certificates" means beneficial interests in the
Certificates, the ownership and transfers of which shall be made through book
entries by a Clearing Agency or Foreign Clearing Agency as described in Section
3.10 of the Trust Agreement.

         "Book-Entry Notes" means beneficial interests in the Notes, the
ownership and transfers of which shall be made through book entries by a
Clearing Agency or Foreign Clearing Agency as described in Section 2.10 of the
Indenture.

         "Business Day" means a day, other than a Saturday or a Sunday, on which
the Indenture Trustee and banks located in New York, New York, Newark, Delaware
and Minneapolis, Minnesota are open for the purpose of conducting a commercial
banking business.

         "Capital Accounts" has the meaning specified in Section 5.8 of the
Trust Agreement.

         "Certificate" means a certificate evidencing the beneficial interest of
a Certificateholder in the Owner Trust Estate, substantially in the form of
Exhibit A-2 to the Trust Agreement.

         "Certificate Balance" means an amount equal to $50,300,000 as of the
Closing Date and, thereafter, shall be an amount equal to such initial
Certificate Balance, reduced by all amounts allocable to principal previously
distributed to Certificateholders. The Certificate Balance shall also be reduced
on any Payment Date by the excess, if any, of (i) the sum of (A) the Certificate
Balance and (B) the outstanding principal amount of the Notes (in each case
after giving effect to amounts in respect of principal to be deposited in the
Certificate Distribution Account and the Note Distribution Account on such
Payment Date), over (ii) the Pool Balance as of the close of business on the
last day of the preceding Collection Period. Thereafter, the Certificate Balance
shall be increased on any Payment Date to the extent that any portion of the
Total Distribution Amount on such Payment Date is available to pay the existing
Certificateholders' Principal Carryover Shortfall, but not by more than the net
aggregate reductions in the Certificate Balance set forth in the preceding
sentence.

         "Certificate Depository Agreement" means the agreement among the
Issuer, the Owner Trustee, JPMorgan Chase Bank, as agent for the Depository
Trust Company and The Depository Trust Company, as the initial Clearing Agency,
dated the Closing Date, relating to the Certificates, substantially in the form
attached as Exhibit C to the Trust Agreement, as the same may be amended and
supplemented from time to time or any similar agreement with any successor
Clearing Agency.

         "Certificate Distribution Account" has the meaning specified in Section
5.1 of the Trust Agreement.

         "Certificate Final Scheduled Payment Date" means the December 2009
Payment Date on which the outstanding principal amount, if any, of the
Certificates is payable.

<PAGE>
                                                                               4

         "Certificate of Trust" means the Certificate of Trust in the form of
Exhibit B to the Trust Agreement to be filed for the Issuer pursuant to Section
3810(a) of the Statutory Trust Statute.

         "Certificate Owner" means, with respect to a Book-Entry Certificate,
the Person who is the owner of such Book-Entry Certificate, as reflected on the
books of the Clearing Agency or Foreign Clearing Agency or on the books of a
direct or indirect Clearing Agency Participant.

         "Certificate Pool Factor" as of the close of business on a Payment Date
means a eight-digit decimal figure equal to the Certificate Balance (after
giving effect to distributions made on such date) divided by the initial
Certificate Balance. The Certificate Pool Factor will be 1.00000000 as of the
Cutoff Date; thereafter, the Certificate Pool Factor will decline to reflect
reductions in the Certificate Balance.

         "Certificate Rate" means 2.04% per annum.

         "Certificate Register" and "Certificate Registrar" means the register
maintained and the registrar appointed pursuant to Section 3.4 of the Trust
Agreement.

         "Certificateholder" means the Person in whose name a Certificate is
registered in the Certificate Register, except that, solely for the purpose of
giving any consent, request, waiver or demand pursuant to any of the Basic
Documents (other than pursuant to Section 4.3 of the Trust Agreement), the
interest evidenced by any Certificate registered in the name of the Seller, the
Servicer or any Person actually known by an Authorized Officer of the Owner
Trustee to be an Affiliate of the Seller or the Servicer shall not be taken into
account in determining whether the requisite percentage necessary to effect any
such consent, request or waiver shall have been obtained.

         "Certificateholders' Distributable Amount" means for any Payment Date,
the sum of (x) the Certificateholders' Principal Distributable Amount and (y)
the Certificateholders' Interest Distributable Amount.

         "Certificateholders' Interest Carryover Shortfall" means, (a) for the
initial Payment Date, zero, and (b) for any other Payment Date, the excess of
the Certificateholders' Interest Distributable Amount for the preceding Payment
Date over the amount in respect of the interest actually deposited in the
Certificate Distribution Account on such preceding Payment Date, plus interest
on such excess, to the extent permitted by law, at the Certificate Rate from and
including such preceding Payment Date to, but excluding, the current Payment
Date.

         "Certificateholders' Interest Distributable Amount" means, for any
Payment Date, the sum of the Certificateholders' Monthly Interest Distributable
Amount for such Payment Date and the Certificateholders' Interest Carryover
Shortfall for such Payment Date.

         "Certificateholders' Monthly Interest Distributable Amount" means, for
any Payment Date, one month's interest (or, in the case of the first Payment
Date, interest accrued from and including the Closing Date to, but excluding,
such Payment Date) at the Certificate Rate on the Certificate Balance on the
immediately preceding Payment Date, after giving effect to all payments of
principal to the Certificateholders on or prior to such Payment Date (or, in the
case of the first Payment Date, the Certificate Balance on the Closing Date).
Interest shall be computed on the basis of a 360 day-year of twelve 30-day
months for purposes of this definition.

<PAGE>
                                                                               5

         "Certificateholders' Monthly Principal Distributable Amount" means, for
any Payment Date, the Certificateholders' Percentage of the Principal
Distribution Amount.

         "Certificateholders' Percentage" means, for any Payment Date, 100%
minus the Noteholders' Percentage.

         "Certificateholders' Principal Carryover Shortfall" means for any
Payment Date, the sum of (a) the excess of (i) the Certificateholders' Principal
Distributable Amount for the preceding Payment Date, over (ii) the amount in
respect of principal actually deposited in the Certificate Distribution Account
on such Payment Date and (b) without duplication of clause (a), the unreimbursed
portion of the amount by which the Certificate Balance has been reduced pursuant
to the second sentence of the definition thereof.

         "Certificateholders' Principal Distributable Amount" means, for any
Payment Date, the sum of (i) the Certificateholders' Monthly Principal
Distributable Amount for such Payment Date and (ii) the Certificateholders'
Principal Carryover Shortfall for such Payment Date; provided that the
Certificateholders' Principal Distributable Amount shall not exceed the
Certificate Balance. In addition, on the Certificate Final Scheduled Payment
Date, the principal required to be distributed to the Certificateholders will
include the lesser of (a) any payments of principal due and remaining unpaid on
each Receivable owned by the Issuer as of the last day of the immediately
preceding Collection Period and (b) the amount that is necessary (after giving
effect to the other amounts to be deposited in the Certificate Distribution
Account on such Payment Date and allocable to principal) to reduce the
Certificate Balance to zero, in either case after giving effect to any required
distribution of the Noteholders' Principal Distributable Amount to the Note
Distribution Account.

         "Chase USA" means Chase Manhattan Bank USA, National Association.

         "Class A-1 Interest Rate" means 1.20% per annum.

         "Class A-1 Notes" means the Class A-1 1.20% Asset Backed Notes,
substantially in the form of Exhibit B to the Indenture.

         "Class A-2 Interest Rate" means 1.26% per annum.

         "Class A-2 Notes" means the Class A-2 1.26% Asset Backed Notes,
substantially in the form of Exhibit C to the Indenture.

         "Class A-3 Interest Rate" means 1.52% per annum.

         "Class A-3 Notes" means the Class A-3 1.52% Asset Backed Notes,
substantially in the form of Exhibit D to the Indenture.

         "Class A-4 Interest Rate" means 2.06% per annum.

<PAGE>
                                                                               6

         "Class A-4 Notes" means the Class A-4 2.06% Asset Backed Notes,
substantially in the form of Exhibit E to the Indenture.

         "Class R Certificate" means the certificate evidencing the beneficial
interest of the Class R Certificateholder in the Owner Trust Estate,
substantially in the form of Exhibit A-1 to the Trust Agreement.

         "Class R Certificateholder" means the Person in whose name the Class R
Certificate is registered.

         "Clearing Agency" means an organization registered as a "clearing
agency" pursuant to Section 17A of the Exchange Act. The initial Clearing Agency
shall be The Depository Trust Company.

         "Clearing Agency Participant" means a broker, dealer, bank, other
financial institution or other person for whom from time to time a Clearing
Agency effects book-entry transfers of securities deposited with the Clearing
Agency (including a Foreign Clearing Agency).

         "Clearstream" means Clearstream Banking, societe anonyme.

         "Closing Date" means May 28, 2003.

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

         "Collection Account" means securities account no. 10205535.2 entitled
"Wells Fargo Bank Minnesota, National Association, as Indenture Trustee,
Securities Account of Chase Auto Owner Trust Series 2003-A" maintained by the
Collection Account Securities Intermediary pursuant to the Collection Account
Control Agreement or any successor securities account maintained pursuant to the
Collection Account Control Agreement.

         "Collection Account Control Agreement" means the agreement among the
Issuer, JPMorgan Chase Bank, as securities intermediary, and the Indenture
Trustee, dated as of May 22, 2003, relating to the Collection Account,
substantially in the form attached as Exhibit C, as the same may be amended and
supplemented from time to time.

         "Collection Account Securities Intermediary" means JPMorgan Chase Bank
or any other securities intermediary that maintains the Collection Account
pursuant to the Collection Account Control Agreement.

         "Collection Period" means the period from and including May 22, 2003 to
and including June 30, 2003 and each calendar month thereafter until Chase
Manhattan Auto Owner Trust 2003-A shall terminate pursuant to Article IX of the
Trust Agreement.

         "Collections" means all collections in respect of Receivables,
including Liquidation Proceeds with respect to the Receivables.

<PAGE>
                                                                               7

         "Contract Rate" of a Receivable means the annual rate of interest
stated in such Receivable.

         "Corporate Trust Office" means the corporate trust office of the
Indenture Trustee in Minneapolis, Minnesota or the office of the Owner Trustee,
as applicable.

         "Cutoff Date" means May 22, 2003.

         "Dealer" means the dealer which sold a Financed Vehicle related to a
Dealer Receivable and which originated or assisted in the origination of such
Dealer Receivable under a Dealer Agreement.

         "Dealer Agreement" means any agreement and, if applicable, assignment
under which Dealer Receivables were originated by or through a Dealer and sold
to the Seller or an affiliate of the Seller.

         "Dealer Receivable" means each Receivable which was originated by the
Seller or an Affiliate of the Seller with the involvement of a Dealer.

         "Debt Cancellation Policy" means a policy issued by Chase USA to the
obligor that forgives the Principal Balance of a Receivable in excess of
insurance proceeds realized upon the event of a total loss of the related
Financed Vehicle.

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

         "Defaulted Receivable" means a Receivable (other than a Repurchased
Receivable) as to which the Servicer has determined based on its usual
collection practices and procedures, during any Collection Period, that eventual
payment in full of the Amount Financed (including accrued interest thereon) is
unlikely; provided that a Receivable shall become a Defaulted Receivable during
the calendar month in which more than 10% of any scheduled payment becomes 240
days delinquent, regardless of whether any such determination has been made.

         "Definitive Notes" means Notes issued in certificated, fully registered
form as provided in Section 2.12 of the Indenture.

         "Definitive Certificates" means Certificates issued in certificated,
fully registered form as provided in Section 3.12 of the Trust Agreement.

         "Delaware Trustee" has the meaning specified in Section 10.1 of the
Trust Agreement.

         "Delinquency Percentage" means, for any Payment Date, the sum of the
outstanding Principal Balances of all Receivables which were 60 days or more
delinquent (including Receivables, which are not Defaulted Receivables, relating
to Financed Vehicles that have been repossessed), as of the close of business on
the last day of the Collection Period immediately preceding such Payment Date,
determined in accordance with the Servicer's normal practices, such sum
expressed as a percentage of the Pool Balance as of the close of business on the
last day of such Collection Period.

<PAGE>
                                                                               8

         "Deposit Date" means the Business Day immediately preceding each
Payment Date.

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

         "Depository Agreements" means, collectively, the Certificate Depository
Agreement and the Note Depository Agreement.

         "Determination Date" means the 10th calendar day of the month (or, if
such 10th calendar day is not a Business Day, the Business Day preceding the
10th calendar day of the month) immediately succeeding the related Collection
Period.

         "Eligible Deposit Account" means (a) a segregated identifiable trust
account established in the trust department of a Qualified Trust Institution,
which shall, except in the case of the Reserve Account and the Yield Supplement
Account, initially be JPMorgan Chase Bank, and may be maintained with JPMorgan
Chase Bank so long as JPMorgan Chase Bank is a Qualified Trust Institution; or
(b) a separately identifiable deposit account established in the deposit taking
department of a Qualified Institution, which may be JPMorgan Chase Bank so long
as JPMorgan Chase Bank is a Qualified Institution.

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

         "Euroclear Operator" means Euroclear Bank S.A./N.V., in its capacity as
the operator of the Euroclear system.

         "Event of Default" means an event specified in Section 5.1 of the
Indenture.

         "Event of Servicing Termination" means an event specified in Section
8.1.

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

         "Expenses" has the meaning specified in Section 8.2 of the Trust
Agreement.

         "FDIC" means the Federal Deposit Insurance Corporation or any successor
thereto.

         "FHLMC" means the Federal Home Loan Mortgage Corporation or any
successor thereto.

         "Final Scheduled Maturity Date" means the last day of the Collection
Period immediately preceding the Certificate Final Scheduled Payment Date.

<PAGE>
                                                                               9

         "Financed Vehicle" means, with respect to a Receivable, the new or used
automobile or light-duty truck, together with all accessions thereto, securing
an Obligor's indebtedness under such Receivable.

         "Fitch" means Fitch, Inc. and its successors and assigns.

         "Fixed Note Percentage" means the percentage equivalent of a fraction
(rounded to the nearest one-one hundred thousandth of 1%) numerator of which is
the Outstanding Amount of the Class A-3 Notes and the Class A-4 Notes on the
Payment Date on which the Class A-2 Notes have been paid in full and the
denominator of which is the sum of the Outstanding Amount of the Class A-3 Notes
and the Class A-4 Notes and the Certificate Balance on the Payment Date on which
the Class A-2 Notes have been paid in full.

         "FNMA" means the Federal National Mortgage Association or any successor
thereto.

         "Foreign Clearing Agency" means, collectively, Clearstream and the
Euroclear Operator.

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

         "Holder" or "Holders" means, unless the context otherwise requires,
both Certificateholders and Noteholders.

         "Indemnified Parties" has the meaning specified in Section 8.2 of the
Trust Agreement.

         "Indenture" means the Indenture dated as of May 22, 2003, between the
Issuer and the Indenture Trustee, as the same may be amended and supplemented
from time to time.

         "Indenture Trustee" means, initially, Wells Fargo, as Indenture Trustee
under the Indenture, or any successor Indenture Trustee under the Indenture.

         "Independent" means, when used with respect to any specified Person,
that the person (a) is in fact independent of the Issuer, any other obligor upon
the Notes, the Seller and any Affiliate of any of the foregoing persons, (b)
does not have any direct financial interest or any material indirect financial
interest in the Issuer, any such other obligor, the Seller or any Affiliate of
any of the foregoing Persons and (c) is not connected with the Issuer, any such
other obligor, the Seller or any Affiliate of any of the foregoing Persons as an
officer, employee, promoter, underwriter, trustee, partner, director or Person
performing similar functions.

<PAGE>
                                                                              10

         "Independent Certificate" means a certificate or opinion to be
delivered to the Indenture Trustee under the circumstances described in, and
otherwise complying with, the applicable requirements of Section 11.1 of the
Indenture, made by an Independent engineer, appraiser or other expert appointed
by the Issuer and approved by the Indenture Trustee in the exercise of
reasonable care, and such opinion or certificate shall state that the signer has
read the definition of "Independent" in this Agreement and that the signer is
Independent within the meaning thereof.

         "Insolvency Event" means, for a specified Person, (a) the filing of a
decree or order for relief by a court having jurisdiction in the premises in
respect of such Person or any substantial part of its property in an involuntary
case under any applicable Federal or state bankruptcy, insolvency or other
similar law now or hereafter in effect, or appointing a receiver (including any
receiver appointed under the Financial Institutions Reform, Recovery and
Enforcement Act of 1989, as amended), liquidator, assignee, custodian, trustee,
sequestrator or similar official for such Person or for any substantial part of
its property, or ordering the winding-up or liquidation of such Person's
affairs, and such decree or order shall remain unstayed and in effect for a
period of 60 consecutive days; or (b) the commencement by such Person of a
voluntary case under any applicable Federal or state bankruptcy, insolvency or
other similar law now or hereafter in effect, or the consent by such Person to
the entry of an order for relief in an involuntary case under any such law, or
the consent by such Person to the appointment of or taking possession by a
receiver, liquidator, assignee, custodian, trustee, sequestrator or similar
official for such Person or for any substantial part of its property, or the
making of such Person of any general assignment for the benefit of creditors, or
the failure by such Person generally to pay its debts as such debts become due,
or the taking of action by such Person in furtherance of any of the foregoing.

         "Interest Rate" means the rate of interest borne by the Notes of any
class.

         "Investment Earnings" means, with respect to any Payment Date, the
investment earnings (net of losses and investment expenses) on amounts on
deposit in the Collection Account.

         "Issuer" means Chase Manhattan Auto Owner Trust 2003-A, a Delaware
statutory trust, until a successor replaces it and, thereafter, means such
successor and, for purposes of any provision contained in the Indenture and
required by the TIA, each other obligor on the Notes.

         "Issuer Order" and "Issuer Request" means a written order or request
signed in the name of the Issuer by any of its authorized officers and delivered
to the Indenture Trustee.

         "JPMorgan Chase Bank" means JPMorgan Chase Bank, a New York banking
corporation and its successors.

         "Late Fees" means any late charges, credit related extension fees,
non-credit related extension fees or other administrative fees or similar
charges allowed by applicable law with respect to the Receivables.

<PAGE>
                                                                              11

         "Lien" means a security interest, lien, charge, pledge or encumbrance
of any kind other than tax liens, mechanics' liens or any other liens that
attach by operation of law.

         "Liquidation Proceeds" means, with respect to any Receivable, (i)
insurance proceeds, (ii) the monies collected during a Collection Period from
whatever source on a Defaulted Receivable and (iii) proceeds of a Financed
Vehicle sold after repossession, in each case net of any liquidation expenses
and payments required by law to be remitted to the Obligor.

         "Moody's" means Moody's Investors Service and its successors and
assigns.

         "Net Loss Ratio" means, for any Payment Date, the ratio, expressed as
an annualized percentage, of (i) the Aggregate Net Losses for such Payment Date
to (ii) the average of the Pool Balances on each of the related Settlement Date
and the last day of the related Collection Period.

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

         "Note Depository Agreement" means the agreement among the Issuer, the
Indenture Trustee, JPMorgan Chase Bank, as agent for The Depository Trust
Company and The Depository Trust Company, as the initial Clearing Agency, dated
the Closing Date, relating to the Notes, substantially in the form of Exhibit F
to the Indenture, as the same may be amended or supplemented from time to time
or any similar agreement with any successor Clearing Agency.

         "Note Distribution Account" means the account designated as such,
established and maintained pursuant to Section 5.1(b).

         "Note Final Scheduled Payment Date" means for (a) the Class A-1 Notes,
the June 2004 Payment Date, (b) the Class A-2 Notes, the January 2006 Payment
Date, (c) the Class A-3 Notes, the May 2007 Payment Date, and (d) the Class A-4
Notes, the December 2009 Payment Date.

         "Note Owner" means, with respect to a Book-Entry Note, the person who
is the owner of such Book-Entry Note, as reflected on the books of the Clearing
Agency or Foreign Clearing Agency, or on the books of a direct or indirect
Clearing Agency Participant.

         "Note Pool Factor" for each class of Notes as of the close of business
on a Payment Date means an eight-digit decimal figure equal to the Outstanding
Amount of such class of Notes divided by the Outstanding Amount as of the
Closing Date of such class of Notes. The Note Pool Factor for each class of
Notes will be 1.00000000 as of the Cutoff Date; thereafter, the Note Pool Factor
for each class of Notes will decline to reflect reductions in the Outstanding
Amount of such class of Notes.

         "Noteholder" means the Person in whose name a Note is registered on the
Note Register.

<PAGE>
                                                                              12

         "Noteholders' Distributable Amount" means, for any Payment Date, the
sum of the Noteholders' Principal Distributable Amount and the Noteholders'
Interest Distributable Amount for all classes of Notes.

         "Noteholders' Interest Carryover Shortfall" means, for any class of
Notes, (a) for the initial Payment Date, zero, and (b) for any other Payment
Date, the excess of (x) the Noteholders' Interest Distributable Amount for the
preceding Payment Date for such class of Notes, over (y) the amount in respect
of interest actually deposited in the Note Distribution Account on such
preceding Payment Date with respect to such class of Notes, plus interest on the
amount of interest due but not paid to the Noteholders of such class on the
preceding Payment Date, to the extent permitted by law, at the applicable
Interest Rate from such preceding Payment Date through the current Payment Date.

         "Noteholders' Interest Distributable Amount" means, for any Payment
Date for any class of Notes, the sum of (x) the Noteholders' Monthly Interest
Distributable Amount for such class of Notes for such Payment Date and (y) the
Noteholders' Interest Carryover Shortfall for such class of Notes for such
Payment Date.

         "Noteholders' Monthly Interest Distributable Amount" means, for any
Payment Date for each class of Notes, one month's interest (or, in the case of
the first Payment Date, interest accrued from and including the Closing Date to
but excluding such Payment Date) at the related Interest Rate on the Outstanding
Amount of the Notes of such class on such Payment Date (or, in the case of the
first Payment Date, on the Closing Date). Interest for purposes of this
definition (i) on the Class A-1 Notes shall be computed on the basis of a
360-day year for the actual number of days elapsed and (ii) on the Class A-2
Notes, the Class A-3 Notes and the Class A-4 Notes shall be computed on the
basis of a 360-day year of twelve 30-day months.

         "Noteholders' Monthly Principal Distributable Amount" means, for any
Payment Date, the Noteholders' Percentage of the Principal Distribution Amount.

         "Noteholders' Percentage" means (i) 100% for each Payment Date
occurring before the Payment Date on which the Class A-2 Notes have been paid in
full, (ii) the Fixed Note Percentage (or such greater percentage as would be
necessary to pay the Class A-2 Notes in full) on such Payment Date, (iii) the
Fixed Note Percentage after such Payment Date until all of the Notes have been
paid in full and (iv) zero thereafter; provided, however, that (x) if the amount
on deposit in the Reserve Account on any Payment Date would be, after giving
effect to distributions on such Payment Date, less than 0.50% of the Original
Pool Balance, the Noteholders' Percentage will be 100% for such Payment Date and
each Payment Date thereafter until the Notes have been paid in full or the
amount on deposit in the Reserve Account equals or exceeds the Specified Reserve
Account Balance and (y) if the Notes have been accelerated after the occurrence
of an Event of Default, the Noteholders' Percentage will be 100% for each
Payment Date thereafter until the Notes have been paid in full.

         "Noteholders' Principal Carryover Shortfall" means for any Payment
Date, the excess of (x) the Noteholders' Principal Distributable Amount for the
preceding Payment Date over (y) the amount in respect of principal actually
deposited in the Note Distribution Account on such Payment Date.

<PAGE>
                                                                              13

         "Noteholders' Principal Distributable Amount" means, for any Payment
Date, the sum of (i) the Noteholders' Monthly Principal Distributable Amount for
such Payment Date and (ii) the Noteholders' Principal Carryover Shortfall for
such Payment Date; provided that the Noteholders' Principal Distributable Amount
shall not exceed the Outstanding Amount of the Notes. In addition, on the Note
Final Scheduled Payment Date of each class of Notes, the principal required to
be deposited in the Note Distribution Account will include the amount necessary
(after giving effect to the other amounts to be deposited in the Note
Distribution Account on such Payment Date and allocable to principal) to reduce
the Outstanding Amount of such class of Notes to zero.

         "Note Register" and "Note Registrar" means the register maintained and
the registrar appointed pursuant to Section 2.4 of the Indenture.

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

         "Officer's Certificate" means a certificate signed by the chairman of
the board, the president, the treasurer, the controller, any executive or senior
vice president or any vice president of the Seller or Servicer, as appropriate,
meeting the requirements of Section 11.1 of the Indenture.

         "Opinion of Counsel" means a written opinion of counsel (who may be
counsel to the Seller or the Servicer) reasonably acceptable in form and
substance to the Indenture Trustee, meeting the requirements of Section 11.1 of
the Indenture (or in the case of an Opinion of Counsel delivered to the Owner
Trustee, reasonably acceptable in form and substance to the Owner Trustee).

         "Optional Purchase Percentage" shall be 10%.

         "Original Pool Balance" shall be $2,010,003.62.

         "Outstanding" means, when used with respect to Notes, as of any date of
determination, all Notes theretofore authenticated and delivered under the
Indenture except:

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

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

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

<PAGE>
                                                                              14

provided that in determining whether the Holders of the requisite Outstanding
Amount of the Notes have given any request, demand, authorization, direction,
notice, consent or waiver hereunder or under any Basic Document, Notes owned by
the Issuer, any other obligor upon the Notes, the Seller or any Affiliate of any
of the foregoing Persons shall be disregarded and deemed not to be Outstanding,
except that, in determining whether the Indenture Trustee shall be protected in
relying upon any such request, demand, authorization, direction, notice, consent
or waiver, only Notes that an Authorized Officer of the Indenture Trustee either
actually knows to be so owned or has received written notice that such Note is
so owned shall be so disregarded. Notes so owned that have been pledged in good
faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Indenture Trustee the pledgee's right so to act with respect
to such Notes and that the pledgee is not the Issuer, any other obligor upon the
Notes, the Seller or any Affiliate of any of the foregoing Persons.

         "Outstanding Amount" means, when used with respect to Notes, as of any
date of determination, the aggregate principal amount of all Notes, or a class
of Notes, as applicable, Outstanding as of such date.

         "Owner Trust Estate" means all right, title and interest of the Issuer
in and to the property and rights assigned to the Issuer pursuant to Article II
of this Agreement, all funds on deposit from time to time in the Trust Accounts
(other than the Note Distribution Account) and the Certificate Distribution
Account and all other property of Issuer from time to time, including any rights
of the Owner Trustee and the Issuer pursuant to this Agreement.

         "Owner Trustee" means Wilmington Trust Company, a Delaware banking
corporation, not in its individual capacity but solely as owner trustee under
the Trust Agreement, and any successor Owner Trustee thereunder.

         "Paying Agent" means: (a) when used in the Indenture or otherwise with
respect to the Notes, the Indenture Trustee or any other Person that meets the
eligibility standards for the Indenture Trustee specified in Section 6.11 of the
Indenture and is authorized by the Indenture Trustee to make the payments to and
distributions from the Collection Account and the Note Distribution Account,
including payment of principal of or interest on the Notes on behalf of the
Issuer; and (b) when used in the Trust Agreement or otherwise with respect to
the Certificates, the Owner Trustee or any other paying agent or co-paying agent
appointed pursuant to Section 3.9 of the Trust Agreement, and in the case of the
Indenture with respect to the Notes, and the Trust Agreement with respect to the
Certificates, such Paying Agent shall initially be the corporate trust office of
JPMorgan Chase Bank.

         "Payment Date" means, in the case of the first Collection Period, July
15, 2003, and in the case of every Collection Period thereafter, the 15th day of
the following month, or if the 15th day is not a Business Day, the next
following Business Day.

         "Permitted Investments" means, at any time, any one or more of the
following obligations, securities (certificated or uncertificated) or
instruments (excluding any security with the "r" symbol attached to its rating):

<PAGE>
                                                                              15

                  (i) obligations of the United States of America or any agency
         thereof; provided such obligations are backed by the full faith and
         credit of the United States of America;

                  (ii) general obligations of or obligations guaranteed as to
         the timely payment of interest and principal by any state of the United
         States of America or the District of Columbia then rated "A-1+" or
         "AAA" by Standard & Poor's, "F1+" or "AAA" by Fitch (if rated by Fitch)
         and P-1 or Aaa by Moody's;

                  (iii) commercial paper, other than commercial paper issued by
         JPMorgan Chase Bank or any of its Affiliates, which is then rated P-1
         by Moody's, "F1+" by Fitch (if rated by Fitch) and "A-1+" by Standard &
         Poor's;

                  (iv) certificates of deposit, demand or time deposits, federal
         funds or banker's acceptances, other than banker's acceptances issued
         by JPMorgan Chase Bank or any of its Affiliates, issued by any
         depository institution or trust company (including the Indenture
         Trustee acting in its commercial banking capacity) incorporated under
         the laws of the United States or of any state thereof or incorporated
         under the laws of a foreign jurisdiction with a branch or agency
         located in the United States of America and subject to supervision and
         examination by federal or state banking authorities which short term
         unsecured deposit obligations of such depository institution or trust
         company are then rated P-1 by Moody's, "F1+" by Fitch (if rated by
         Fitch) and "A-1+" by Standard & Poor's;

                  (v) demand or time deposits of, or certificates of deposit
         issued by, any bank, trust company, savings bank or other savings
         institution; provided such deposits or certificates of deposit are
         fully insured by the FDIC;

                  (vi) guaranteed reinvestment agreements issued by any bank,
         insurance company or other corporation the short term unsecured debt or
         deposits of which are rated P-1 by Moody's, "F1+" by Fitch (if rated by
         Fitch) and "A-1+" by Standard & Poor's or the long-term unsecured debt
         of which are rated Aaa by Moody's, "AAA" by Fitch (if rated by Fitch)
         and "AAA" by Standard & Poor's;

                  (vii) repurchase obligations with respect to any security
         described in clauses (i) or (ii) herein or any other security issued or
         guaranteed by the FHLMC, FNMA or any other agency or instrumentality of
         the United States of America which is backed by the full faith and
         credit of the United States of America, in either case entered into
         with a federal agency or a depository institution or trust company
         (acting as principal) described in (iv) above;

                  (viii) investments in money market funds, which funds (A) are
         not subject to any sales, load or other similar charge; and (B) are
         rated at least "AAAM" or "AAAM-G" by Standard & Poor's, "AAAV-1+" by
         Fitch (if rated by Fitch) and Aaa by Moody's; and

                  (ix) such other investments, other than investments in
         JPMorgan Chase Bank or any of its affiliates, where either (A) the
         short-term unsecured debt or deposits of the obligor on such
         investments are rated "A-1+" by Standard & Poor's, "F1+" by Fitch (if
         rated by Fitch) and P-1 by Moody's.

<PAGE>
                                                                              16

Permitted Investments may include money market mutual funds (so long as such
fund has the ratings specified in clause (viii) hereof), including, without
limitation, the JP Morgan Prime Money Market Fund or any other fund for which
JPMorgan Chase Bank, the Indenture Trustee or an Affiliate thereof serves as an
investment advisor, administrator, shareholder servicing agent, and/or custodian
or subcustodian, notwithstanding that (i) JPMorgan Chase Bank, Wells Fargo or an
Affiliate thereof charges and collects fees and expenses from such funds for
services rendered, (ii) JPMorgan Chase Bank, Wells Fargo or an Affiliate thereof
charges and collects fees and expenses for services rendered pursuant to this
Agreement, and (iii) services performed for such funds and pursuant to this
Agreement may converge at any time. The Indenture Trustee specifically
authorizes JPMorgan Chase Bank, Wells Fargo or an Affiliate thereof to charge
and collect all fees and expenses from such funds for services rendered to such
funds (but not to exceed investment earnings), in addition to any fees and
expenses JPMorgan Chase Bank or Wells Fargo, as applicable, may charge and
collect for services rendered pursuant to this Agreement.

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

         "Pool Balance" as of any date of determination means, the aggregate
Principal Balance of the Receivables as of the close of business on the last day
of the preceding Collection Period, after giving effect to all payments received
from Obligors and Repurchase Amounts to be remitted by the Servicer or the
Seller, as the case may be, for such Collection Period and all losses realized
on Receivables liquidated during such Collection Period.

         "Predecessor Note" means, with respect to any particular Note, every
previous Note evidencing all or a portion of the same debt as that evidenced by
such particular Note; and, for the purpose of this definition, any Note
authenticated and delivered under Section 2.5 of the Indenture in lieu of a
mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same
debt as the mutilated, lost, destroyed or stolen Note.

         "Prepayment Date" means in the case of a prepayment of the Notes
pursuant to Section 10.1 of the Indenture, the Payment Date specified by the
Servicer pursuant to such Section 10.1.

         "Principal Balance" of a Receivable, as of the close of business on the
last day of any Collection Period, means the Amount Financed minus that portion
of all payments received on or prior to such date allocable to principal. The
Principal Balance of a Defaulted Receivable or a Repurchased Receivable shall be
deemed to be zero, in each case, as of such date.

         "Principal Distribution Amount" means, for any Payment Date, the sum of
the following amounts, without duplication: (i) Available Principal and (ii)
Aggregate Net Losses.

<PAGE>
                                                                              17

         "Principal Prepayment" means a payment or other recovery of principal
on a Receivable (including insurance proceeds and Liquidation Proceeds applied
to principal on a Receivable) which is received in advance of its due date.

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

         "Projected Weighted Average Life" means, with respect to (a) the Class
A-1 Notes, 0.37, (b) the Class A-2 Notes, 1.05, (c) the Class A-3 Notes, 2.00,
(d) the Class A-4 Notes, 3.50 and (e) the Certificates, 2.75.

         "Qualified Institution" means a depository institution organized under
the laws of the United States of America or any State thereof or incorporated
under the laws of a foreign jurisdiction with a branch or agency located in the
United States of America or any State thereof and subject to supervision and
examination by federal or state banking authorities which at all times has the
Required Deposit Rating and, in the case of any such institution organized under
the laws of the United States of America, whose deposits are insured by the
FDIC.

         "Qualified Trust Institution" means an institution organized under the
laws of the United States of America or any State thereof or incorporated under
the laws of a foreign jurisdiction with a branch or agency located in the United
States of America or any State thereof and subject to supervision and
examination by federal or state banking authorities which at all times (i) is
authorized under such laws to act as a trustee or in any other fiduciary
capacity, (ii) has not less than one billion dollars in assets under fiduciary
management, and (iii) has a long term deposits rating of not less than "BBB-" by
Standard & Poor's, Baa3 by Moody's and "BBB-" by Fitch (if rated by Fitch).

         "Rating Agency" means any of Standard & Poor's, Moody's or Fitch.

         "Rating Agency Condition" means, with respect to any action or event,
that each Rating Agency shall have notified the Seller, the Servicer, the
Indenture Trustee and the Owner Trustee, in writing, that such action or event
will not result in reduction or withdrawal of any then outstanding rating of any
outstanding Note or Certificate with respect to which it is the Rating Agency.

         "Receivable" means a retail installment sale contract or purchase money
promissory note or other promissory note and security agreement executed by an
Obligor in respect of a Financed Vehicle, and all proceeds thereof and payments
thereunder (other than interest accrued and unpaid as of the opening of business
on the Cutoff Date), which Receivable shall be identified in the Schedule of
Receivables.

         "Receivable Files" means the documents specified in Section 3.3.

         "Receivables Pool" means the pool of Receivables included in the Trust
Estate and all monies received thereunder on or after the Cutoff Date.

         "Record Date" means, with respect to any Payment Date, the Business Day
prior to such Payment Date unless Definitive Notes or Definitive Certificates
are issued, in which case, Record Date, with respect to such Definitive Notes or
Definitive Certificates, as applicable, shall mean the last day of the
immediately preceding calendar month.

<PAGE>
                                                                              18

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

         "Repurchase Amount" of a Repurchased Receivable or any Receivable
purchased by the Servicer pursuant to Section 9.1, means the sum, as of the last
day of the Collection Period on which such Receivable becomes such, of the
Principal Balance thereof plus the Accrued Interest thereon.

         "Repurchased Receivable" means a Receivable repurchased by the Seller
pursuant to Section 3.2 or purchased by the Servicer pursuant to Section 4.6.

         "Required Deposit Rating" shall be a short-term certificate of deposit
rating from Moody's of P-1, from Fitch of "F1+" (if rated by Fitch) and from
Standard & Poor's of "A-1+," and a long-term unsecured debt rating of not less
than Aa3 by Moody's, "AA" by Fitch (if rated by Fitch) and "AA-" by Standard &
Poor's.

         "Required Rate" means the sum of (i) the Servicing Fee Rate and (ii)
the percentage equivalent of a fraction, the numerator of which is equal to the
sum of the product for each class of Notes and for the Certificates of (x) the
Interest Rate for such class of Notes or the Certificate Rate, (y) the
Outstanding Amount of the Notes of such class on the Closing Date or the
Certificate Balance on the Closing Date and (z) the Projected Weighted Average
Life with respect to such class of Notes or the Certificates, and the
denominator of which is equal to the sum of the product for each class of Notes
and for the Certificates of (1) the Outstanding Amount of the Notes of such
class on the Closing Date or the Certificate Balance on the Closing Date and (2)
the Projected Weighted Average Life with respect to such class of Notes or the
Certificates.

         "Reserve Account" means securities account no. 14720000 entitled "Wells
Fargo Bank Minnesota, National Association, as Indenture Trustee, Securities
Account of Chase Auto Owner Trust Series 2003-A" maintained by the Reserve
Account Securities Intermediary pursuant to the Reserve Account Control
Agreement or any successor securities account maintained pursuant to the Reserve
Account Control Agreement.

         "Reserve Account Control Agreement" means the agreement among the
Issuer, Wells Fargo, as securities intermediary, and the Indenture Trustee,
dated as of May 22, 2003, relating to the Reserve Account, substantially in the
form attached as Exhibit D, as the same may be amended and supplemented from
time to time.

         "Reserve Account Initial Deposit" means an amount equal to $15,075,000.

         "Reserve Account Securities Intermediary" means Wells Fargo or any
other securities intermediary that maintains the Reserve Account pursuant to the
Reserve Account Control Agreement.

<PAGE>
                                                                              19

         "Reserve Account Transfer Amount" means, for any Payment Date, an
amount equal to the lesser of (a) the amount of cash or other immediately
available funds on deposit in the Reserve Account on such Payment Date
(excluding amounts to be paid to the Class R Certificateholder pursuant to
clause (i) of Section 5.7(d), but before giving effect to any other withdrawals
therefrom relating to such Payment Date) and (b) the amount, if any, by which
the sum of the amounts set forth in clauses (i) through (vi) of Section 5.5(c),
inclusive, exceeds the Total Distribution Amount for such Payment Date.

         "Responsible Officer" means, with respect to the Indenture Trustee, any
officer within the Corporate Trust Office of the Indenture Trustee, including
any Vice President, Assistant Vice President, Assistant Treasurer, Assistant
Secretary, or any other officer of the Indenture Trustee customarily performing
functions similar to those performed by any of the above designated officers and
also, with respect to a particular matter, any other officer to whom such matter
is referred because of such officer's knowledge of and familiarity with the
particular subject.

         "Sale Proceeds" has the meaning specified in Section 9.1(b).

         "Schedule of Receivables" means the list of Receivables attached hereto
as Schedule A.

         "SFAS 140" means the Statement of Financial Accounting Standard No.
140, Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities.

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

         "Securities Control Agreements" means, collectively, the Collection
Account Control Agreement, the Reserve Account Control Agreement and the Yield
Supplement Account Control Agreement.

         "Securities Intermediaries" means, collectively, JPMorgan Chase Bank,
acting as securities intermediary under the Collection Account Control Agreement
or any successor thereto thereunder and Wells Fargo, acting as securities
intermediary under the Reserve Account Control Agreement and the Yield
Supplement Account Control Agreement or any successor thereto thereunder.

         "Seller" means Chase Manhattan Bank USA, National Association, a
national banking association with its principal executive offices in Newark,
Delaware, in its capacity as the seller of the Receivables under this Agreement,
and each successor to Chase Manhattan Bank USA, National Association (in the
same capacity) pursuant to Section 6.3.

         "Servicer" means Chase Manhattan Bank USA, National Association, a
national banking association with its principal offices in Newark, Delaware, in
its capacity as the servicer of the Receivables under this Agreement, and each
successor to Chase Manhattan Bank USA, National Association (in the same
capacity) pursuant to Section 7.3, and each successor servicer pursuant to
Section 8.2.

         "Servicer's Certificate" means a certificate, substantially in the form
of Exhibit A attached hereto, completed and executed by the Servicer by its
chairman of the board, the president, treasurer, controller or any executive,
senior vice president or vice president pursuant to Section 4.8.

<PAGE>
                                                                              20

         "Servicing Fee" with regard to a Collection Period means the fee
payable to the Servicer for services rendered during such Collection Period,
determined pursuant to Section 4.7.

         "Servicing Fee Rate" means 1.00% per annum.

         "Settlement Date" means, with respect to any Collection Period, the
last day of the Collection Period immediately preceding such Collection Period,
and with respect to any Payment Date, the last day of the second Collection
Period preceding the Collection Period in which such Payment Date occurs.

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

         "Simple Interest Receivable" means any Receivable providing for the
allocation of payments made thereunder to principal and interest in accordance
with the Simple Interest Method.

         "Specified Reserve Account Balance" with respect to any Payment Date,
means 1.75% of the Pool Balance as of the related Settlement Date, but in any
event will not be less than the lesser of (i) $15,075,000 and (ii) such Pool
Balance; provided that the Specified Reserve Account Balance will be calculated
using a percentage of 3.50% for any Payment Date (beginning with the September
2003 Payment Date) for which the Average Net Loss Ratio exceeds 1.75% or the
Average Delinquency Percentage exceeds 1.75%. Upon written notification to the
Indenture Trustee by the Seller, the Specified Reserve Account Balance may be
reduced to a lesser amount as determined by the Seller so long as such reduction
satisfies the Rating Agency Condition.

         "Specified Yield Supplement Amount" with respect to any Payment Date,
means an amount equal to the lesser of (a) the Yield Supplement Account Initial
Deposit and (b) the sum of the Yield Supplement Withdrawal Amounts for all
future Payment Dates, assuming that (i) all scheduled payments on the Yield
Supplemented Receivables are made when due, (ii) no prepayments are made on the
Yield Supplemented Receivables and (iii) the investment income on amounts on
deposit in the Yield Supplement Account will be 0.75% per annum.

         "Standard & Poor's" means Standard & Poor's Ratings Services and its
successors and assigns.

         "Statutory Trust Statute" means Chapter 38 of Title 12 of the Delaware
Code, 12 Del. Code ss. 3801 et seq., as amended from time to time.

         "Total Distribution Amount" means, for any Payment Date, the sum of
Available Interest and Available Principal for such Payment Date. The Total
Distribution Amount on any Payment Date shall exclude all payments and proceeds
(including any Liquidation Proceeds and any amounts received from Dealers with
respect to Receivables) of any Receivables the Repurchase Amount of which has
been included in the Total Distribution Amount for a prior Payment Date.

<PAGE>
                                                                              21

         "Treasury Regulations" means, the treasury regulations promulgated
under Code.

         "Trust Accounts" means, collectively, the Collection Account, the Note
Distribution Account, the Reserve Account and the Yield Supplement Account.

         "Trust Agreement" means the Amended and Restated Trust Agreement dated
as of May 22, 2003, between the Depositor and the Owner Trustee, as the same may
be amended and supplemented from time to time.

         "Trust Estate" means all money, instruments, rights and other property
that are subject or intended to be subject to the lien and security interest of
the Indenture for the benefit of the Noteholders (including all property and
interests Granted to the Indenture Trustee), including all proceeds thereof, the
Reserve Account and the Yield Supplement Account.

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

         "Wells Fargo" means Wells Fargo Bank Minnesota, National Association.

         "Yield Supplement Account" means securities account no. 14720001
entitled "Wells Fargo Bank Minnesota, National Association, as Indenture
Trustee, Securities Account of Chase Auto Owner Trust Series 2003-A" maintained
by the Yield Supplement Account Securities Intermediary pursuant to the Yield
Supplement Account Control Agreement or any successor securities account
maintained pursuant to the Yield Supplement Account Control Agreement.

         "Yield Supplement Account Control Agreement" means the agreement among
the Issuer, Wells Fargo, as securities intermediary, and the Indenture Trustee,
dated as of May 22, 2003, relating to the Yield Supplement Account,
substantially in the form attached as Exhibit E, as the same may be amended and
supplemented from time to time.

         "Yield Supplement Account Initial Deposit" means an amount equal to
$4,091,802.66.

         "Yield Supplement Account Securities Intermediary" means Wells Fargo or
any other securities intermediary that maintains the Yield Supplement Account
pursuant to the Yield Supplement Account Control Agreement.

         "Yield Supplement Withdrawal Amount" means, for any Payment Date, an
amount equal to the lesser of (i) the amount of cash or other immediately
available funds on deposit in the Yield Supplement Account on such Payment Date
and (ii) the aggregate amount by which one month's interest (assuming a
thirty-day month) on the Principal Balance of each Yield Supplemented Receivable
as of the close of business on the last day of the second Collection Period
preceding such Payment Date at the Required Rate exceeds one month's interest
(assuming a thirty-day month) on such Principal Balance at the Contract Rate of
such Yield Supplemental Receivable.

<PAGE>
                                                                              22

         "Yield Supplemented Receivable" means a Receivable that has a Contract
Rate that is less than the Required Rate.

         SECTION 1.2 Usage of Terms. With respect to all terms in this
Agreement, the singular includes the plural and the plural the singular; words
importing any gender include the other gender; references to "writing" include
printing, typing, lithography, and other means of reproducing words in a visible
form; references to agreements and other contractual instruments include all
subsequent amendments thereto or changes therein entered into in accordance with
their respective terms and not prohibited by this Agreement; references to
Persons include their permitted successors and assigns; and the term "including"
means "including without limitation." All references herein to Articles,
Sections, Subsections and Exhibits are references to Articles, Sections,
Subsections and Exhibits contained in or attached to this Agreement unless
otherwise specified, and each such Exhibit is part of the terms of this
Agreement.

         SECTION 1.3 Simple Interest Method; Methods of Allocating Payments or
Receivables; Allocations. All allocations of payments to principal and interest
and determinations of periodic charges and the like on the Receivables shall be
based on a year with the actual number of days in such year and twelve months
with the actual number of days in each such month. Each payment on a Receivable
shall be applied first, to the payment of accrued and unpaid interest on such
Receivable, second, to reduce the scheduled principal amount outstanding on the
Receivable to the extent of the remaining scheduled payment, third, to any
outstanding fees and Late Fees under the terms of the Receivable and fourth, to
reduce the principal amount outstanding on the Receivable. Amounts paid by the
Seller or the Servicer in respect of Repurchased Receivables shall be allocated
as if the Obligor thereof had prepaid such Receivable in full on the date as of
which such Receivable was repurchased by the Seller pursuant to Section 3.2 or
purchased by the Servicer pursuant to Section 4.6 or 9.1.

                                   ARTICLE II

                            CONVEYANCE OF RECEIVABLES

         SECTION 2.1 Conveyance of Receivables. In consideration of the Issuer's
delivery of the Notes, the Certificates and the Class R Certificate to and upon
the order of the Seller, the Seller does hereby sell, transfer, assign, and
otherwise convey to the Issuer, without recourse (subject to the Seller's
obligations herein):

                  (i) all right, title, and interest of the Seller in, to and
         under the Receivables listed in the Schedule of Receivables, which is
         incorporated by reference herein, all proceeds thereof and all amounts
         and monies received thereon on or after the Cutoff Date (including
         proceeds of the repurchase of Receivables by the Seller pursuant to
         Section 3.2 or the purchase of Receivables by the Servicer pursuant to
         Section 4.6 or 9.1), together with the interest of the Seller in the
         security interests in the Financed Vehicles granted by the Obligors
         pursuant to the Receivables and in any repossessed Financed Vehicles;

                  (ii) all right, title and interest of the Seller in any
         Liquidation Proceeds and in any proceeds of any extended warranties,
         theft and physical damage, guaranteed auto protection, credit life or
         credit disability policies relating to the Financed Vehicles or the
         Obligors;

<PAGE>
                                                                              23

                  (iii) all right, title and interest of the Seller in any
         proceeds from Dealer repurchase obligations relating to the
         Receivables; and

                  (iv) all proceeds (as defined in the Relevant UCC) of the
         foregoing.

         In connection with such sale, the Seller agrees to record and file, at
its own expense, financing statements (and continuation statements with respect
to such financing statements when applicable) with respect to the Receivables
for the sale of accounts and chattel paper meeting the requirements of
applicable state law in such manner and in such jurisdictions as are necessary
to perfect the sale and assignment of the Receivables to the Issuer.

         It is the intention of the Seller and the Issuer that (a) the
assignment and transfer herein contemplated constitute a sale of the
Receivables, conveying good title thereto free and clear of any liens and
encumbrances, from the Seller to the Issuer and (b) the Receivables not be part
of the Seller's estate in the event of an insolvency. In the event that such
conveyance is deemed to be a pledge to secure a loan, the Seller hereby grants
to the Issuer a first priority perfected security interest in all of the
Seller's right, title and interest in, to and under the items of property listed
in clauses (i) through (iii) above, and in all proceeds (as defined in the
Relevant UCC) of the foregoing, to secure the loan deemed to be made in
connection with such pledge and, in such event, this Agreement shall constitute
a security agreement under applicable law.

         SECTION 2.2 Closing. The conveyance of the Receivables shall take place
at the offices of Simpson Thacher & Bartlett, New York, New York on the Closing
Date, simultaneously with the closing of the transactions contemplated by the
underwriting agreements related to the Notes and the Certificates and the other
Basic Documents. Upon the acceptance by the Seller of the Notes, the
Certificates and the Class R Certificate, the ownership of each Receivable and
the contents of the related Receivable File will be vested in the Issuer,
subject only to the lien of the Indenture.

                                  ARTICLE III

                                 THE RECEIVABLES

         SECTION 3.1 Representations and Warranties of Seller; Conditions
Relating to Receivables.

         (a) The Seller makes the following representations and warranties as to
the Receivables on which the Issuer shall rely in acquiring the Receivables.
Such representations and warranties shall speak as of the Cutoff Date unless
otherwise specified, but shall survive the sale, transfer, and assignment of the
Receivables to the Issuer and the pledge thereof to the Indenture Trustee
pursuant to the Indenture.

<PAGE>
                                                                              24

                  (i) Schedule of Receivables. The Schedule of Receivables
         identifies the Receivables by account number, name of Obligor and
         remaining principal balance of the Receivables as of the Cutoff Date
         and the information set forth in the Schedule of Receivables with
         respect to each Receivable is true and correct in all material
         respects, and no selection procedures materially adverse to the Holders
         has been utilized in selecting the Receivables from all receivables
         owned by the Seller which meet the selection criteria specified herein.

                  (ii) No Sale or Transfer. No Receivable has been sold,
         transferred, assigned or pledged by the Seller to any Person other than
         the Issuer.

                  (iii) Good Title. Immediately prior to the transfer and
         assignment of the Receivables to the Issuer herein contemplated, the
         Seller has good and marketable title to each Receivable free and clear
         of all Liens and rights of others; and, immediately upon the transfer
         thereof, the Issuer has either (i) good and marketable title to each
         Receivable, free and clear of all Liens and rights of others, other
         than the Lien of the Indenture Trustee under the Indenture, and the
         transfer has been perfected under applicable law or (ii) a first
         priority perfected security interest in each Receivable and the
         proceeds thereof.

         (b) Each Receivable satisfies the following conditions as of the Cutoff
Date unless otherwise specified and such conditions shall survive the sale,
transfer and assignment of the Receivables to the Issuer and the pledge thereof
to the Indenture Trustee pursuant to the Indenture.

                  (i) Acquisition. Each Receivable is a Dealer Receivable
         acquired directly or indirectly from or made through a Dealer located
         in the United States (including the District of Columbia);

                  (ii) Security. Each Receivable is secured by a new or used
         automobile or light-duty truck; (iii) Maturity of Receivables. Each
         Receivable had a remaining maturity of not less than nine months and
         not greater than seventy-two months, and (A) in the case of each
         Receivable secured by new Financed Vehicles, had an original maturity
         of at least twelve months and not more than seventy-three months, or
         (B) in the case of each Receivable secured by used Financed Vehicles,
         had an original maturity of at least twelve months and not more than
         sixty-seven months.

                  (iv) Contract Rate. Each Receivable is a fully-amortizing
         fixed rate simple interest contract or note that provides for level
         scheduled monthly payments over its remaining term and has a Contract
         Rate of not more than 18.00% per annum;

                  (v) No Repossessions. Each Receivable is secured by a Financed
         Vehicle that had not been repossessed without reinstatement of such
         Receivable;

                  (vi) Obligor Not Subject to Bankruptcy Proceedings. Each
         Receivable has been entered into by an Obligor who had not been
         identified on the computer files of the Seller as in bankruptcy
         proceedings;

<PAGE>
                                                                              25

                  (vii) No Overdue Payments. Each Receivable had no payment that
         was more than 30 days past due;

                  (viii) Remaining Principal Balance. Each Receivable had a
         remaining Principal Balance of at least $2,000 and not greater than
         $100,000;

                  (ix) No Force Placed Insurance. Each Receivable was secured by
         a Financed Vehicle that was not insured by a force placed insurance
         policy or any vendor's single interest and non-filing insurance policy;

                  (x) Receivable Files. The Receivable Files were kept at one or
         more of the locations specified in Schedule B hereto;

                  (xi) Characteristics of Receivables. Each Receivable (a) has
         been originated in the form of a credit sales transaction by a Dealer
         or a purchase money loan or other note through a Dealer located in one
         of the States of the United States (including the District of Columbia)
         for the retail financing of a Financed Vehicle and has been fully and
         properly executed by the parties thereto, (b) if a retail installment
         sales contract, has been purchased by the Seller from the originating
         Dealer or an Affiliate of the Seller and has been validly assigned by
         such Dealer or an Affiliate of the Seller to the Seller in accordance
         with its terms; (c) contains customary and enforceable provisions such
         that the rights and remedies of the holder thereof are adequate for
         realization against the collateral of the benefits of the security; and
         (d) provides for fully amortizing level scheduled monthly payments
         (provided that the -------- payment in the last month in the life of
         the Receivable may be different from the level scheduled payment) and
         for accrual of interest at a fixed rate according to the Simple
         Interest Method;

                  (xii) Compliance with Laws. Each Receivable and each sale of
         the related Financed Vehicle complied at the time it was originated or
         made, and complied on and after the Cutoff Date, in all material
         respects with all requirements of applicable federal, state, and local
         laws, and regulations thereunder, including usury laws, the Federal
         Truth-in-Lending Act, the Equal Credit Opportunity Act, the Fair Credit
         Reporting Act, the Federal Trade Commission Act, the Magnuson-Moss
         Warranty Act, Federal Reserve Board Regulations B and Z, state
         adaptations of the National Consumer Act and of the Uniform Consumer
         Credit Code, and any other consumer credit, equal opportunity, and
         disclosure laws applicable to such Receivable and sale thereof;

                  (xiii) Binding Obligation. Each Receivable constitutes the
         legal, valid, and binding payment obligation in writing of the Obligor,
         enforceable by the holder thereof in all material respects in
         accordance with its terms, subject, as to enforcement, to applicable
         bankruptcy, insolvency, reorganization, liquidation and other similar
         laws and equitable principles relating to or affecting the enforcement
         of creditors' rights;

                  (xiv) No Government Obligor. Each Receivable is not due from
         the United States of America or any State or from any agency,
         department, instrumentality or political subdivision of the United
         States of America or any State or local municipality, and each
         Receivable is not due from a business except to the extent that such
         Receivable has a personal guaranty;

<PAGE>
                                                                              26

                  (xv) Security Interest in Financed Vehicle. Immediately prior
         to the sale and assignment thereof to the Issuer as herein
         contemplated, each Receivable was secured by a validly perfected first
         priority security interest in the related Financed Vehicle in favor of
         or for the benefit of the Seller as secured party (subject to
         administrative delays and clerical errors on the part of the applicable
         governmental agency and to any statutory or other lien arising by
         operation of law after the Closing Date which is prior to such security
         interest), the Seller's security interest (or beneficial interest
         therein) is assignable, and has been so assigned by the Seller to the
         Issuer, and at such time as enforcement of such security interest is
         sought, each Receivable shall be secured by a validly perfected first
         priority security interest in the related Financed Vehicle for the
         benefit of the Issuer (subject to administrative delays and clerical
         errors on the part of the applicable governmental agency and to any
         statutory or other lien arising by operation of law after the Closing
         Date which is prior to such security interest);

                  (xvi) Receivables in Force. No Receivable has been satisfied,
         subordinated, or rescinded, nor has any Financed Vehicle been released
         from the Lien granted by the related Receivable, in whole or in part;

                  (xvii) No Waiver. No provision of a Receivable has been waived
         in such a manner that such Receivable fails either to meet all of the
         representations and warranties made by the Seller herein with respect
         thereto or to meet all of the conditions with respect thereto pursuant
         to this Section 3.1(b);

                  (xviii) No Amendments. No Receivable has been amended except
         pursuant to either instruments included in the Receivable Files or
         instruments to be included in the Receivable Files pursuant to Section
         4.2 (or otherwise maintained by the Seller in the ordinary course of
         its business), and no such amendment has caused such Receivable either
         to fail to meet all of the representations and warranties made by the
         Seller herein with respect thereto or to fail to meet all of the
         conditions with respect thereto pursuant to this Section 3.1(b);

                  (xix) No Defenses. The Seller had no knowledge either of any
         facts which would give rise to any right of rescission, setoff,
         counterclaim, or defense, or of the same being asserted or threatened,
         with respect to any Receivable;

                  (xx) No Liens. The Seller had no knowledge of any Liens or
         claims that have been filed, including liens for work, labor, materials
         or unpaid taxes relating to a Financed Vehicle, that would be liens
         prior to, or equal or coordinate with, the lien granted by the
         Receivable;

                  (xxi) No Default. Except for payment defaults continuing for a
         period of not more than 30 days as of the close of business on the
         Cutoff Date, the Seller has no knowledge that a default, breach,
         violation, or event permitting acceleration under the terms of any
         Receivable exists; the Seller has no knowledge that a continuing
         condition that with notice or lapse of time would constitute a default,
         breach, violation, or event permitting acceleration under the terms of
         any Receivable exists; and the Seller has not waived any of the
         foregoing;

<PAGE>
                                                                              27

                  (xxii) Insurance. Each Receivable requires that the Obligor
         thereunder maintain comprehensive, liability, theft and physical damage
         insurance covering the related Financed Vehicle;

                  (xxiii) Lawful Assignment. No Receivable has been originated
         in, or is subject to the laws of, any jurisdiction under which the
         sale, transfer, and assignment of such Receivable under this Agreement
         or pursuant to transfers of the Certificates or the Notes is unlawful,
         void or voidable;

                  (xxiv) All Filings Made. No filings (other than filings under
         the Relevant UCC which have been made) or other actions are necessary
         in any jurisdiction to give the Issuer a first perfected security
         interest in the Receivables;

                  (xxv) Chattel Paper. Each Receivable constitutes either
         "tangible chattel paper" or "electronic chattel paper" within the
         meaning of the Relevant UCC. In the case of a Receivable constituting
         "tangible chattel paper" within the meaning of the Relevant UCC, there
         is no more than one original executed copy of such Receivable, which
         immediately prior to delivery thereof to the Servicer (as custodian)
         for the Issuer, was in the possession of the Seller. In the case of a
         Receivable constituting "electronic chattel paper" within the meaning
         of the Relevant UCC, (a) there is no more than one authoritative copy
         of such Receivable which (i) is unique, identifiable and unalterable,
         (ii) has been marked with a unique encrypted numerical identifier and
         (iii) was communicated to and maintained by the Seller, and (b) the
         Seller has not communicated an authoritative copy of such Receivable to
         any Person;

                  (xxvi) Excluded Loans. Each Receivable is not a Receivable
         originated by or through a Dealer located in the State of Alabama,
         Maine or Maryland; and

                  (xxvii) No Debt Cancellation Policy. No Receivable is subject
         to a Debt Cancellation Policy.

         SECTION 3.2 Repurchase Upon Breach or Failure of a Condition. The
Seller, the Servicer, the Indenture Trustee or the Owner Trustee, as the case
may be, shall inform the other parties in writing, upon the discovery by the
Seller, the Servicer or an Authorized Officer of the Indenture Trustee or the
Owner Trustee, as the case may be, of either any breach of the Seller's
representations and warranties set forth in Section 3.1(a) or the failure of any
Receivable to satisfy any of the conditions set forth in Section 3.1(b) which
materially and adversely affects the Holders' interest in any Receivable. Unless
the breach or failed condition shall have been cured by the last day of the
Collection Period following the Collection Period in which such discovery
occurred (or, at the Seller's option, the last day of the Collection Period in
which such discovery occurred), the Seller shall repurchase any Receivable the
Holders' interest in which was materially and adversely affected by the breach
or failed condition, as of such last day. In consideration of the repurchase of
a Receivable, the Seller shall remit the Repurchase Amount of

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                                                                              28

such Receivable as of such last day (less any Liquidation Proceeds deposited, or
to be deposited, by the Servicer in the Collection Account with respect to such
Receivable pursuant to Section 4.3) in the manner specified in Section 5.4. The
sole remedy of the Issuer, the Indenture Trustee or the Holders with respect
either to a breach of the Seller's representations and warranties set forth in
Section 3.1(a) or to a failure of any of the conditions set forth in Section
3.1(b) shall be to require the Seller to repurchase Receivables pursuant to this
Section 3.2. The obligation of the Seller to repurchase under this Section 3.2
shall not be dependent upon the actual knowledge of the Seller of any breached
representation or warranty and shall exist without regard to any limitation set
forth in any representation or warranty concerning the knowledge of the Seller
as to the facts stated therein. The Owner Trustee shall have no duty to conduct
any affirmative investigation as to the occurrence of any condition requiring
the repurchase of any Receivable pursuant to this Section 3.2 or the eligibility
of any Receivable for purposes of this Agreement.

         SECTION 3.3 Custody of Receivable Files. To assure uniform quality in
servicing the Receivables and to reduce administrative costs, the Issuer, upon
the execution and delivery of this Agreement, agrees to have the Servicer act as
custodian of the following authoritative copies, documents or instruments (the
"Receivable Files") which are hereby constructively delivered to the Issuer with
respect to each Receivable:

                  (i) in the case of a Receivable constituting "tangible chattel
         paper" within the meaning of the Relevant UCC, the original executed
         copy of such Receivable or, in the case of a Receivable constituting
         "electronic chattel paper" within the meaning of the Relevant UCC, the
         authoritative copy of such Receivable; and

                  (ii) Any and all other documents or records that the Seller or
         the Servicer, as the case may be, shall keep on file, in accordance
         with its customary procedures, relating to a Receivable, an Obligor or
         a Financed Vehicle.

         The Servicer hereby agrees to act as custodian and as agent for the
Issuer hereunder. The Servicer acknowledges that it holds the documents and
instruments relating to the Receivables for the benefit of the Issuer. The
Issuer shall have no responsibility to monitor the Servicer's performance as
custodian and shall have no liability in connection with the Servicer's
performance of such duties hereunder.

         SECTION 3.4 Duties of Servicer as Custodian.

         (a) Safekeeping. The Servicer, in its capacity as custodian, shall hold
the Receivable Files on behalf of the Issuer, and maintain such accurate and
complete accounts, records (either original execution documents or copies of
such originally executed documents shall be sufficient) and computer systems
pertaining to the Receivables as shall enable the Issuer to comply with its
obligations pursuant to this Agreement. In performing its duties as custodian,
the Servicer shall act with reasonable care, using that degree of skill and
attention that the Servicer exercises with respect to the receivable files of
comparable new or used automobile receivables that the Servicer services for
itself. The Servicer shall conduct, or cause to be conducted, periodic audits of
the files of all receivables owned or serviced by the Servicer which shall
include the Receivable Files held by it under this Agreement and the related
accounts, records and computer systems, in such a manner as shall enable the
Owner Trustee or the Indenture Trustee to identify all Receivable Files and such
related accounts, records and computer systems and to verify, if the Owner
Trustee or the Indenture Trustee so elects, the accuracy of the Servicer's
recordkeeping. The Servicer shall promptly report to the Owner Trustee or the
Indenture Trustee any failure on its part to hold the Receivable Files and
maintain its accounts, records, and computer systems as herein provided, and
promptly take appropriate action to remedy any such failure.

<PAGE>
                                                                              29

         (b) Maintenance of and Access to Records. The Servicer shall maintain
each Receivable File at one of the locations specified in Schedule B to this
Agreement, or at such other location as shall be specified to the Owner Trustee
and the Indenture Trustee by 30 days' prior written notice. The Servicer shall
make available to the Owner Trustee, the Indenture Trustee or their respective
duly authorized representatives, attorneys or auditors, the Receivable Files and
the related accounts, records and computer systems maintained by the Servicer at
such times during normal operating hours as the Owner Trustee or Indenture
Trustee shall reasonably instruct which does not unreasonably interfere with the
Servicer's normal operations or customer or employee relations.

         (c) Release of Documents. Upon instruction from the Indenture Trustee
(or, if the Notes have been paid in full, from the Owner Trustee), the Servicer
shall release any document in the Receivable Files to the Indenture Trustee or
Owner Trustee, or their respective agents or designee, as the case may be, at
such place or places as such Person may reasonably designate as soon as
reasonably practicable to the extent it does not unreasonably interfere with the
Servicer's normal operations or customer or employee relations. The Servicer
shall not be responsible for any loss occasioned by the failure of the Owner
Trustee or Indenture Trustee, or their respective agents or designees, to return
any document or any delay in doing so.

         (d) Title to Receivables. The Servicer agrees that, in respect of any
Receivable held by it as custodian hereunder, (i) the Servicer will not at any
time have or in any way attempt to assert any interest in such Receivable or the
related Receivable File, other than solely for the purpose of collecting or
enforcing the Receivable for the benefit of the Issuer and (ii) the related
Receivable File shall at all times be property of the Issuer.

         SECTION 3.5 Instructions; Authority to Act. The Servicer shall be
deemed to have received proper instructions with respect to the Receivable Files
upon its receipt of written instructions signed by an Authorized Officer of the
Indenture Trustee (or, if the Notes have been paid in full, of the Owner
Trustee). A certified copy of a by-law or of a resolution of the Board of
Directors of the Owner Trustee or the Indenture Trustee, as the case may be,
shall constitute conclusive evidence of the authority of any such Authorized
Officer to act and shall be considered in full force and effect until receipt by
the Servicer of written notice to the contrary given by the Owner Trustee or the
Indenture Trustee, as the case may be.

         SECTION 3.6 Custodian's Indemnification. The Servicer, as custodian,
shall indemnify the Issuer, the Owner Trustee and the Indenture Trustee for any
and all liabilities, obligations, losses, damages, payments, costs, or expenses
of any kind whatsoever that may be imposed on, incurred or asserted against the
Issuer, the Owner Trustee or the Indenture Trustee as the result of any act or
omission in any way relating to the maintenance and custody by the Servicer, as
custodian, of the Receivable Files; provided, however, that the Servicer shall
not be liable for any portion of any such amount resulting from the willful
misfeasance, bad faith, or negligence of the Issuer, the Owner Trustee or the
Indenture Trustee.

<PAGE>
                                                                              30

         SECTION 3.7 Effective Period and Termination. The Servicer's
appointment as custodian shall become effective as of the Cutoff Date and shall
continue in full force and effect until terminated pursuant to this Section 3.7
or until this Agreement shall be terminated. If the Servicer shall resign as
Servicer under Section 7.5 or if all of the rights and obligations of the
Servicer shall have been terminated under Section 8.1, the appointment of the
Servicer as custodian may be terminated by the Indenture Trustee or by the
Holders of Notes evidencing not less than a majority of the aggregate
Outstanding Amount of the Notes (or, if there are no Notes outstanding, the
Holders of Certificates representing not less than a majority of the Certificate
Balance), in the same manner as the Indenture Trustee or such Holders may
terminate the rights and obligations of the Servicer under Section 8.1. As soon
as practicable after any termination of such appointment, the Servicer shall, at
its expense, deliver and/or electronically communicate the Receivable Files to
the Issuer or the Issuer's agent at such place or places as the Issuer may
reasonably designate. Notwithstanding the termination of the Servicer as
custodian, the Owner Trustee agrees that upon any such termination, the Issuer
shall provide, or cause its agent to provide, access to the Receivable Files to
the Servicer for the purpose of carrying out its duties and responsibilities
with respect to the servicing of the Receivables hereunder.

                                   ARTICLE IV

                   ADMINISTRATION AND SERVICING OF RECEIVABLES

         SECTION 4.1 Duties of Servicer. The Servicer is hereby authorized to
act as agent for the Issuer and in such capacity shall manage, service,
administer and make collections on the Receivables (other than Repurchased
Receivables) with reasonable care, using that degree of skill and attention that
the Servicer exercises with respect to comparable new or used automobile
receivables that it services for itself. The Servicer's duties shall include
collection and posting of all payments, responding to inquiries by Obligors or
by federal, state, or local governmental authorities with respect to the
Receivables, investigating delinquencies, reporting tax information to Obligors
in accordance with its customary practices, advancing costs of disposition of
defaults, monitoring Receivables in cases of Obligor defaults, accounting for
collections, furnishing monthly and annual statements to the Indenture Trustee
with respect to distributions. The Servicer shall follow its customary
standards, policies, and procedures in performing its duties as Servicer
hereunder; provided that the Servicer shall be permitted to take or to refrain
from taking any action not specified in this Agreement with respect to servicing
the Receivables if such action or inaction would not contravene any material
term of this Agreement or materially and adversely affect the interests of
Holders and is not outside customary or normal servicing procedures. Without
limiting the generality of the foregoing, the Servicer shall be authorized and
empowered by the Issuer to execute and deliver, on behalf of itself, the Owner
Trustee, the Indenture Trustee and the Holders, 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, without recourse to the Issuer,
with respect to the Receivables or with respect to the Financed Vehicles. If the
Servicer shall commence a legal proceeding to enforce a Receivable or a
Defaulted Receivable, the Issuer shall thereupon be deemed to have automatically
assigned such Receivable and the related property conveyed to the Issuer with
respect to such Receivable to the Servicer, solely for the purpose of
collection. The Owner Trustee shall furnish the Servicer with such documents as
have been prepared by the Servicer for execution by the Owner Trustee and as are
necessary or appropriate to enable the Servicer to carry out its servicing and
administrative duties hereunder.

<PAGE>
                                                                              31

         SECTION 4.2 Collection of Receivable Payments; Refinancing. (a) The
Servicer shall make reasonable efforts to collect all payments called for under
the terms and provisions of the Receivables and of this Agreement as and when
the same shall become due, and shall follow such collection procedures as it
follows with respect to comparable new or used automobile receivables that it
services for itself and that are consistent with prudent industry standards. In
connection therewith, the Servicer may grant extensions, rebates or adjustments
on a Receivable without the consent of the Issuer; provided, however, that if
the Servicer extends the date for final payment by the Obligor of any Receivable
beyond the Final Scheduled Maturity Date, it shall promptly repurchase such
Receivable pursuant to Section 4.6. The Servicer is authorized in its discretion
to waive any Late Fees that may be due in the ordinary course of collecting a
Receivable; provided, further, that the Servicer shall not agree to any change
in the underlying Contract Rate on any Receivable, to any change in the
Principal Balance thereof (except with respect to a prepayment of a scheduled
payment that does not result in a deferral of any other scheduled payment), to
any reduction of the total number of payments due thereunder or, subject to the
foregoing, to any reduction of the amount of any scheduled payment on a
Receivable. In the event that at the end of the scheduled term of any
Receivable, the outstanding principal amount thereof is such that the final
payment to be made by the related Obligor is larger than the regularly scheduled
payment of principal and interest made by such Obligor, the Servicer may permit
such Obligor to pay such remaining principal amount in more than one payment of
principal and interest; provided, however, that the last such payment shall be
due on or prior to the Final Scheduled Maturity Date.

         (b) Notwithstanding anything in this Agreement to the contrary, the
Servicer may refinance any Receivable by accepting a new promissory note from
the related Obligor and applying the proceeds of such refinancing to pay all
obligations in full of such Obligor under such Receivable. The receivable
created by the refinancing shall not be property of the Issuer.

         SECTION 4.3 Realization Upon Receivables. The Servicer shall use
reasonable efforts, consistent with its customary servicing procedures, to
repossess or otherwise take possession of the Financed Vehicle securing any
Receivable during the calendar month in which more than 10% of any scheduled
payment thereunder becomes 90 days delinquent; provided, however that the
Servicer may repossess or otherwise take possession of the Financed Vehicle
securing a Receivable (i) earlier if (A) such Receivable becomes a Defaulted
Receivable, (B) the Servicer determines that such Financed Vehicle is in danger
of being damaged, destroyed or otherwise made unavailable for repossession or
(C) the related Obligor voluntarily surrenders such Financed Vehicle or (ii)
later if (A) the Servicer is unable to locate such Financed Vehicle, (B) the
related Obligor is the subject of a bankruptcy proceeding or (C) the Servicer
otherwise defers repossession of such Financed Vehicle in accordance with its
normal and customary servicing practices and procedures. After repossession of a
Financed Vehicle, the Servicer shall in accordance with its customary and usual
practices and procedures sell such Financed Vehicle in an auction or consign
such Financed Vehicle to a Dealer for resale as soon as is practicable after
repossession, subject to any applicable laws. The Servicer shall follow such
customary and usual practices and procedures as it shall deem necessary or
advisable in determining when and if to exercise reasonable efforts to realize
upon any recourse to Dealers. The Servicer shall be entitled to recover from
proceeds all reasonable expenses incurred by it in the course of converting the
Financed Vehicle into cash proceeds. The Liquidation Proceeds with respect to a
Receivable shall be deposited by the Servicer in the Collection Account in the
manner specified in Section 5.2 and shall be applied to reduce (or to satisfy,
as the case may be) the Repurchase Amount of the Receivable, if such Receivable
is to be repurchased by the Seller pursuant to Section 3.2, or is to be
purchased by the Servicer pursuant to Section 4.6. The foregoing shall be
subject to the provision that, in any case in which a Financed Vehicle shall
have suffered damage, the Servicer shall not expend funds in connection with the
repair or the repossession of such Financed Vehicle unless it shall determine in
its sole discretion that such repair and/or repossession will increase the
Liquidation Proceeds of the related Receivable by an amount equal to or greater
than the amount of such expenses.

<PAGE>
                                                                              32

         SECTION 4.4 Maintenance of Security Interests in Financed Vehicles. The
Servicer, in accordance with its customary servicing procedures, shall take such
steps as are necessary to maintain perfection of the first priority security
interest of the Seller created in any Financed Vehicle which secures a
Receivable. The Owner Trustee, on behalf of the Issuer, and the Indenture
Trustee hereby authorize the Servicer, and the Servicer hereby agrees, to take
such steps as are necessary to re-perfect such security interest in the event of
the relocation of a Financed Vehicle or for any other reason, in either case,
when the Servicer has knowledge of the need for such re-perfection. In the event
that the assignment of a Receivable to the Issuer and by the Issuer to the
Indenture Trustee pursuant to the Indenture is insufficient without a notation
on the related Financed Vehicle's certificate of title, or without fulfilling
any additional administrative requirements under the laws of the State in which
the Financed Vehicle is located, to grant to the Indenture Trustee a perfected
security interest in the related Financed Vehicle, the Seller and Servicer
hereby agree that the Seller's listing as the secured party on the certificate
of title is deemed to be in its capacity as agent of the Indenture Trustee and
the Servicer further agrees to hold such certificate of title as the Indenture
Trustee's agent and custodian; provided, however, that the Servicer shall not,
nor shall the Owner Trustee, the Indenture Trustee or Holders have the right to
require that the Servicer, make any such notation on the related Financed
Vehicles' certificate of title or fulfill any such additional administrative
requirement of the laws of the State in which a Financed Vehicle is located.

         SECTION 4.5 Covenants of Servicer. The Servicer hereby makes the
following covenants on which the Issuer will rely in accepting the Receivables:

                  (i) Security Interest to Remain in Force. The Financed Vehicle
         securing each Receivable shall not be released from the security
         interest granted by the Receivable in whole or in part except if such
         Financed Vehicle is substituted in whole by the manufacturer, dealer or
         seller as a result of mechanical defects or a total loss of the
         Financed Vehicle because of accident or theft or as otherwise
         contemplated herein;

                  (ii) No Impairment. The Servicer shall not impair the rights
         of the Issuer, the Indenture Trustee or any Holder in the Receivables;
         and

<PAGE>
                                                                              33

                  (iii) Extensions; Defaulted Receivables. The Servicer shall
         not increase the number of payments under a Receivable, nor increase
         the Amount Financed under a Receivable, nor extend or forgive payments
         on a Receivable or otherwise amend the terms of any Receivable, except
         as provided in Section 4.2.

         SECTION 4.6 Purchase of Receivables Upon Breach. The Seller, the
Servicer, the Indenture Trustee or the Owner Trustee, as the case may be, shall
inform the other parties promptly, in writing, upon the discovery by the Seller,
the Servicer or an Authorized Officer of the Indenture Trustee or the Owner
Trustee, as the case may be, of any breach by the Servicer of its covenants
under Section 4.5 which materially and adversely affects the interest of the
Holders in any Receivable (for this purpose, any breach of the covenant set
forth in Section 4.5(iii) shall be deemed to materially and adversely affect the
interest of the Holders in a Receivable). Except as otherwise specified in
Section 4.2, unless the breach shall have been cured by the last day of the
Collection Period following the Collection Period in which such discovery
occurred (or, at the Servicer's election, the last day of the Collection Period
in which such discovery occurred), the Servicer shall purchase any Receivable
materially and adversely affected by such breach as of such last day. In
consideration of the purchase of such Receivable, the Servicer shall remit the
Repurchase Amount (less any Liquidation Proceeds deposited, or to be deposited,
by the Servicer in the Collection Account with respect to such Receivable
pursuant to Section 4.3) in the manner specified in Section 5.4. The sole remedy
of the Issuer, the Owner Trustee, the Indenture Trustee or the Holders against
the Servicer with respect to a breach pursuant to Section 4.2 or 4.5 shall be to
require the Servicer to purchase Receivables pursuant to this Section 4.6. The
Owner Trustee shall have no duty to conduct any affirmative investigation as to
the occurrence of any condition requiring the repurchase of any Receivable
pursuant to this Section 4.6 or the eligibility of any Receivable for purposes
of this Agreement.

         SECTION 4.7 Servicing Fee. The Servicing Fee for a Collection Period
shall be payable on the related Payment Date pursuant to Section 5.5 and shall
equal the sum of (i)(A) in the case of the first Payment Date, the product of 39
multiplied by 1/360 of the Servicing Fee Rate and the Pool Balance as of the
Cutoff Date or (B) for all other Payment Dates, the product of one-twelfth of
the Servicing Fee Rate and the Pool Balance as of the related Settlement Date
and (ii) Late Fees received from Obligors during such Collection Period. In
addition, as part of the Servicing Fee, the Servicer shall be entitled to
receive on each Payment Date Investment Earnings when and as paid on amounts on
deposit in the Collection Account or earned on collections pending deposit in
the Collection Account. The Servicer shall be required to pay from its own
account all expenses incurred by it in connection with its activities hereunder
(including fees and disbursements of independent accountants and auditors, taxes
imposed on the Servicer, and other costs incurred in connection with
administering and servicing the Receivables) and the fees and disbursements of
the Issuer, the Administrator, the Owner Trustee, the Indenture Trustee, the
Owner Trustee's and the Indenture Trustee's respective counsel, the Securities
Intermediaries, the Paying Agent, the Authenticating Agent, the Note Registrar
and the Certificate Registrar except for United States federal, state and local
income and franchise taxes, if any, imposed on the Issuer or any Holder or any
expenses in connection with realizing upon Receivables under Section 4.3.

<PAGE>
                                                                              34

         SECTION 4.8 Servicer's Certificate. On or before each Determination
Date, the Servicer shall deliver to the Indenture Trustee, the Owner Trustee,
the Paying Agent and the Rating Agencies a Servicer's Certificate, substantially
in the form of Exhibit A, for the Collection Period preceding such Determination
Date, containing all information necessary to make the distributions pursuant to
Section 5.5, and all information necessary for the Paying Agent to send
statements to Holders pursuant to Section 5.9. The Servicer shall deliver to the
Rating Agencies any information, to the extent it is available to the Servicer,
that the Rating Agencies reasonably request in order to monitor the Issuer. The
Servicer shall also specify each Receivable which the Seller or the Servicer is
required to repurchase or purchase, as the case may be, as of the last day of
the preceding Collection Period and each Receivable which the Servicer shall
have determined to be a Defaulted Receivable during the preceding Collection
Period. Subsequent to the Closing Date, the form of Servicer's Certificate may
be revised or modified to cure any ambiguities or inconsistencies between such
form and this Agreement; provided, however, that no material information shall
be deleted from the form of Servicer's Certificate. In the event that the form
of Servicer's Certificate is revised or modified in accordance with the
preceding sentence, a form thereof, as so revised or modified, shall be provided
to the Owner Trustee, the Paying Agent, the Indenture Trustee and each Rating
Agency.

         SECTION 4.9 Annual Statement as to Compliance. (a) The Servicer shall
deliver to a firm of independent certified public accountants, on or before
March 31 of each year commencing March 31, 2004, a certificate signed by the
chairman of the board, the president, the treasurer, the controller, any
executive or senior vice president or any vice president of the Servicer,
stating that (a) a review of the activities of the Servicer during the year
ended the preceding December 31 (or the period since the Cutoff Date in the case
of the first such certificate) and of its performance under this Agreement has
been made under such officer's supervision and (b) to the best of such officer's
knowledge, based on such review, the Servicer has fulfilled all its obligations
in all material respects under this Agreement throughout such year (or the
period since the Cutoff Date in the case of the first such certificate), or, if
there has been a default in the fulfillment of any such obligation, specifying
each such default known to such officer and the nature and status thereof.

         (b) The Servicer shall deliver to the Indenture Trustee, the Owner
Trustee and each Rating Agency promptly after having obtained knowledge thereof,
but in no event later than five Business Days thereafter, an Officer's
Certificate specifying any event which with the giving of notice or lapse of
time, or both, would become an Event of Servicing Termination under Section 8.1.
The Seller shall deliver to the Indenture Trustee and the Owner Trustee,
promptly after having obtained knowledge thereof, but in no event later than
five Business Days thereafter, an Officer's Certificate specifying any event
which with the giving of notice or lapse of time, or both, would become an Event
of Servicing Termination under Section 8.1.

         SECTION 4.10 Annual Audit Report. The Servicer shall cause a firm of
independent public accountants (which may provide other services to the Servicer
or the Seller) to prepare a report (with a copy of the certificate described in
Section 4.9(a) attached) addressed to the Board of Directors of the Servicer,
for the information and use of the Indenture Trustee, the Owner Trustee and the
Rating Agencies on or before March of each year, beginning March 31, 2004 to the
effect that, with respect to the twelve months ended the preceding December 31
(or the period since the Cutoff Date, in the case of the first such
certificate), such firm has either (A) examined a written assertion by the
Servicer about the effectiveness of the Servicer's internal control structure
over the processing and reporting of transactions relating to securitized
automobile loans with respect to the criteria set forth by the Servicer (the
"Assertion") and that, on the basis of such examination, such firm is of the
opinion that the Servicer's Assertion is fairly stated in all material respects
except for such exceptions as shall be set forth in such firm's report, or (B)
such firm has performed the following procedures:

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                                                                              35

1. For a sample of daily cash receipts during the preceding calendar year:

         a.       Trace total cash receipts to deposits on bank statements.

         b.       Agree cash receipts for securitized loans to computer reports.

         c.       Trace cash receipts for securitized loans to disbursements to
                  the Owner Trustee and the Indenture Trustee.

2. For a sample of monthly cash receipt reports:

         a.       Agree total cash receipts per the cash receipt reports to
                  "Total Payments From Obligors Applied to Collection Period"
                  per monthly Servicer Certificates.

         b.       Agree total principal payments per the cash receipt reports to
                  "Principal Payments" per monthly Servicer Certificates.

3. For a sample of loans delinquent 30 days or more and for a sample of loans in
repossession status, selected from the loan delinquency report or a new
repossession report, as applicable, at a point in time, trace loan number to
inclusion in the loan collection system.

         The determination of which of the two alternative reports to be
prepared and delivered, and the size of each sample to be tested, shall be
decided in the sole discretion of the Servicer. The report of the independent
certified public accountants shall also indicate that such accounting firm is
independent of the Servicer within the meaning of the Code of Professional
Ethics of the American Institute of Certified Public Accountants.

         SECTION 4.11 Access by Holders to Certain Documentation and Information
Regarding Receivables. The Servicer shall provide to the Holders access to the
Receivable Files in such cases where the Holders shall be required by applicable
statutes or regulations to have access to such documentation. Access by the
Holders shall be afforded without charge, but only upon reasonable request and
during normal business hours which does not unreasonably interfere with the
Servicer's normal operations or customer or employee relations. Nothing in this
Section 4.11 shall affect the obligation of the Servicer to observe any
applicable law prohibiting disclosure of information regarding the Obligors, and
the failure of the Servicer to provide access to information as a result of such
obligation shall not constitute a breach of this Section 4.11.

         SECTION 4.12 Reports to Holders and the Rating Agencies. (a) The
Indenture Trustee or the Owner Trustee, as applicable, shall provide to any
Holder who so requests in writing (addressed to the Corporate Trust Office of
such trustee) a copy of any Servicer's Certificate described in Section 4.8, of
the annual statement described in Section 4.9(a), or of the annual report
described in Section 4.10. The Indenture Trustee or the Owner Trustee, as
applicable, may require the Holder to pay a reasonable sum to cover the cost of
the Indenture Trustee's or the Owner Trustee's complying with such request, as
applicable.

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                                                                              36

         (b) The Indenture Trustee or the Owner Trustee, as applicable, shall
forward to the Rating Agencies the statement to Holders described in Section 5.9
and any other reports it may receive pursuant to this Agreement to (i) Standard
& Poor's, Standard & Poor's Ratings Service, 55 Water Street, New York, New York
10041, (ii) Moody's, ABS Monitoring Dept., 99 Church Street, 4th Floor, New
York, New York 10007 and (iii) Fitch, One State Street Plaza, 32nd Floor, New
York, New York 10004.

         SECTION 4.13 Reports to the Securities and Exchange Commission. The
Servicer shall, on behalf of the Issuer, cause to be filed with the Commission
any periodic reports required to be filed under the provisions of the Exchange
Act and the rules and regulations of the Securities and Exchange Commission
thereunder.

                                   ARTICLE V

                            ACCOUNTS; DISTRIBUTIONS;
                        STATEMENTS TO CERTIFICATEHOLDERS

         SECTION 5.1 Establishment of Collection Account and Note Distribution
Account. (a)On or prior to the Closing Date, the Issuer, the Collection Account
Securities Intermediary and the Indenture Trustee shall have entered into the
Collection Account Control Agreement pursuant to which the Collection Account
shall be established and maintained for the benefit of the Noteholders and the
Certificateholders. If the depositary of the Collection Account ceases to be
either a Qualified Institution or a Qualified Trust Institution, as applicable,
the Issuer shall cause the Collection Account to be moved to a Qualified
Institution or a Qualified Trust Institution and the Indenture Trustee shall
cause the depositary maintaining the new Collection Account to assume the
obligations of the existing Collection Account Securities Intermediary under the
Collection Account Control Agreement unless the Rating Agency Condition is
satisfied in connection with such depositary's ceasing to be a Qualified
Institution or a Qualified Trust Institution, as the case may be. All amounts
held in the Collection Account shall be invested in accordance with the
Collection Account Control Agreement at the written direction of the Servicer to
the extent provided in Section 8.3(a) and Section 8.3(c) of the Indenture in
Permitted Investments that mature not later than the Deposit Date next
succeeding the date of investment except, if the Collection Account Securities
Intermediary and the Indenture Trustee are the same Person, investments on which
the Indenture Trustee is the obligor (including repurchase agreements on which
the Indenture Trustee, in its commercial capacity, is liable as principal) may
mature on the next succeeding Payment Date; provided, however, that once such
amounts have been invested in Permitted Investments, such Permitted Investments
must be held or maintained until they mature on or before the dates described
above.

         (b) On or prior to the Closing Date, the Servicer shall establish and
maintain for the benefit of the Noteholders, in the name of the Indenture
Trustee, an Eligible Deposit Account for the deposit of distributions to the
Noteholders (the "Note Distribution Account"), bearing a designation clearly
indicating that the funds deposited therein are held for the benefit of the
Noteholders. The Note Distribution Account shall be established initially at
JPMorgan Chase Bank. Should any depositary of the Note Distribution Account or
the Certificate Distribution Account (including JPMorgan Chase Bank (or an
Affiliate thereof)) cease to be either a Qualified Institution or a Qualified
Trust Institution, as applicable, then the Servicer shall, with the Seller's
assistance as necessary, cause the related account to be moved to a Qualified
Institution or a Qualified Trust Institution, unless the Rating Agency Condition
is satisfied in connection with such depositary's ceasing to be a Qualified
Institution or a Qualified Trust Institution, as the case may be. Amounts on
deposit in the Note Distribution Account shall not be invested.

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                                                                              37

         (c) The Indenture Trustee shall possess all right, title and interest
in all funds on deposit from time to time in the Note Distribution Account and
in all proceeds thereof and all such funds, investments, proceeds and income
shall be part of the Owner Trust Estate.

         SECTION 5.2 Collections. (a) The Servicer shall remit daily within
forty-eight hours of receipt to the Collection Account all Collections collected
during the Collection Period. Chase USA has requested that, so long as it is
acting as the Servicer, the Servicer be permitted to make remittances of
Collections on a less frequent basis than that specified in the immediately
preceding sentence. It is understood that such less frequent remittances may be
made only on the specific terms and conditions set forth below in this Section
5.2 and only for so long as such terms and conditions are fulfilled.
Accordingly, notwithstanding the provisions of the first sentence of this
Section 5.2, the Servicer shall remit such collections to the Collection Account
in Automated Clearinghouse Corporation next-day funds or immediately available
funds no later than 11:00 a.m., New York City time, on the Deposit Date, but
only for so long as (i) the short-term certificate of deposit ratings of the
Servicer are at least P-1 by Moody's, "F1" by Fitch (if rated by Fitch) and
"A-1" by Standard & Poor's, or the Rating Agency Condition is satisfied as a
result of Collections being remitted on a monthly, rather than daily, basis and
(ii) the Servicer shall be Chase USA or JPMorgan Chase Bank. Upon remittance by
the Servicer of Collections to the Collection Account pursuant to the preceding
sentence, the Paying Agent shall provide written notice to the Indenture Trustee
and the Owner Trustee no later than 11 a.m., New York City time, on each Deposit
Date, setting forth the amounts remitted by the Servicer on such date and, if
the Paying Agent fails to provide the Indenture Trustee and the Owner Trustee,
with such written notice by 12 noon, New York City time, on such Deposit Date,
then the Indenture Trustee and the Owner Trustee shall assume that no deposits
were made to the Collection Account pursuant to this Section 5.2. For purposes
of this Section 5.2 the phrase "payments made on behalf of the Obligors" shall
mean payments made by Persons other than the Seller or the Servicer.

         (b) Notwithstanding anything in this Agreement to the contrary, if the
Servicer inadvertently deposits amounts that it mistakenly believes are
Collections resulting in the payment in full of a Receivable, and (i) the
Servicer discovers its error prior to the Payment following such deposit, the
Indenture Trustee, at the written direction of the Servicer, shall withdraw such
amounts and pay them to the Servicer or (ii) the Servicer shall be deemed to
have purchased such Receivable pursuant to Section 4.6 as of the last day of the
Collection Period during which such error shall have occurred.

         SECTION 5.3 [Reserved]

         SECTION 5.4 Additional Deposits. The Servicer, or the Seller, as the
case may be, shall deposit into the Collection Account the aggregate Repurchase
Amount pursuant to Sections 3.2, 4.6 and 9.1(a), as applicable. All remittances
shall be made to the Collection Account, in Automated Clearinghouse Corporation
next-day funds or immediately available funds, no later than 11 a.m., New York
City time, on the Deposit Date.

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                                       38

         SECTION 5.5 Distributions. (a) No later than 12 noon, New York City
time, on each Determination Date, the Servicer shall calculate all amounts
required to determine the amounts to be withdrawn from the Yield Supplement
Account and the amounts to be withdrawn from the Reserve Account (if any) and
deposited into the Collection Account and the amounts to be withdrawn from the
Collection Account and paid to the Servicer and the Administrator, deposited
into the Note Distribution Account and the Certificate Distribution Account
and/or paid to the Class R Certificateholder pursuant to Sections 5.6(d) and
5.7(d) with respect to the next succeeding Payment Date.

         (b) On each Deposit Date, the Servicer shall instruct the Indenture
Trustee in writing (based on the information contained in the Servicer's
Certificate delivered on the related Determination Date pursuant to Section 4.8)
to withdraw from the Yield Supplement Account and deposit in the Collection
Account the Yield Supplement Withdrawal Amount for the related Payment Date and
to withdraw from the Reserve Account and deposit in the Collection Account the
Reserve Account Transfer Amount (if any) for the related Payment Date, and the
Indenture Trustee shall so withdraw and deposit the Yield Supplement Withdrawal
Amount and the Reserve Account Transfer Amount (if any) for such Payment Date.

         (c) Not later than 11:00 a.m., New York City time, on each Payment
Date, at the Servicer's direction, the Indenture Trustee, or the Paying Agent on
behalf of the Indenture Trustee, shall cause to be made the following
distributions, to the extent of the Total Distribution Amount then on deposit in
the Collection Account and amounts withdrawn from the Reserve Account and
deposited in the Collection Account by wire transfer of immediately available
funds, in the following order of priority and in the amounts set forth in the
Servicer's Certificate for such Payment Date:

                  (i) to the Servicer, the sum of (x) the Servicing Fee for the
         preceding Collection Period, plus (y) the amount of any Servicing Fee
         previously due but not paid, if any, to the extent such amounts are not
         deducted from the Servicer's remittance to the Collection Account
         pursuant to Section 5.8;

                  (ii) to the Administrator, the sum of (x) the Administration
         Fee for such Payment Date, plus (y) the amount of any Administration
         Fee previously due but not paid, if any;

                  (iii) to the Note Distribution Account, the Noteholders'
         Interest Distributable Amount;

                  (iv) except as set forth in Section 5.5(d), to the Owner
         Trustee for deposit in the Certificate Distribution Account, the
         Certificateholders' Interest Distributable Amount;

                  (v) except as set forth in Section 5.5(d), to the Note
         Distribution Account, the Noteholders' Principal Distributable Amount;
         and

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                                                                              39

                  (vi) except as set forth in Section 5.5(d), to the Owner
         Trustee for deposit in the Certificate Distribution Account, the
         Certificateholders' Principal Distributable Amount; and

                  (vii) except as set forth in Section 5.5(d), to the Reserve
         Account, any remaining portion of the Total Distribution Amount.

         In the event that the Collection Account is maintained with an
institution other than the Indenture Trustee, the Servicer shall instruct and
cause such institution to make all deposits and distributions pursuant to this
Section 5.5(c) on the related Deposit Date.

         (d) If the Notes have been declared immediately due and payable as
provided in Section 5.2 of the Indenture following the occurrence of an Event of
Default described in clause (a) or (b) of Section 5.2 of the Indenture, any
amounts remaining in the Collection Account after the distributions described in
clauses (i), (ii) and (iii) of Section 5.5(c) shall be distributed as follows:
(1) an amount equal to the Outstanding Amount of the Notes will be deposited in
the Note Distribution Account, and (2) any remaining amounts will be applied
pursuant to clauses (iv), (v), (vi) and (vii) of Section 5.5(c).

         SECTION 5.6 Yield Supplement Account. (a) On or prior to the Closing
Date, the Issuer, the Yield Supplement Account Securities Intermediary and the
Indenture Trustee shall have entered into the Yield Supplement Account Control
Agreement pursuant to which the Yield Supplement Account shall be established
and maintained for the benefit of the Noteholders and the Certificateholders.
Pursuant to Section 2.5 of the Trust Agreement, on the Closing Date, the Owner
Trustee shall deposit the Yield Supplement Account Initial Deposit into the
Yield Supplement Account. No additional deposits will be made to the Yield
Supplement Account after the Closing Date.

         (b) If the depositary of the Yield Supplement Account ceases to be
either a Qualified Institution or a Qualified Trust Institution, as applicable,
the Issuer shall cause the Yield Supplement Account to be moved to a Qualified
Institution or a Qualified Trust Institution and the Indenture Trustee shall
cause the depositary maintaining the new Yield Supplement Account to assume the
obligations of the existing Yield Supplement Account Securities Intermediary
under the Yield Supplement Account Control Agreement unless the Rating Agency
Condition is satisfied in connection with such depositary's ceasing to be a
Qualified Institution or a Qualified Trust Institution, as the case may be.

         (c) All amounts held in the Yield Supplement Account shall be invested
in accordance with the Yield Supplement Account Control Agreement at the written
direction of the Class R Certificateholder to the extent provided in Section
8.3(a) and Section 8.3(c) of the Indenture in Permitted Investments that mature
not later than the Deposit Date next succeeding the date of investment except,
if the Yield Supplement Account Securities Intermediary and the Indenture
Trustee are the same Person, investments on which the Indenture Trustee is the
obligor (including repurchase agreements on which the Indenture Trustee, in its
commercial capacity, is liable as principal) may mature on the next succeeding
Payment Date; provided, however, that amounts on deposit in the Yield Supplement
Account may be invested in Permitted Investments that mature later than the next
succeeding Deposit Date, but in no event that mature later than 90 days after
the date of investment, if the Rating Agency Condition is satisfied. Once
amounts on deposit in the Yield Supplement Account are invested in Permitted
Investments, such Permitted Investments must be held or maintained until they
mature on or before the dates described above.

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                                                                              40

         (d) On each Payment Date, the Indenture Trustee shall withdraw from the
Yield Supplement Account and pay to the Class R Certificateholder an amount
equal to the excess, if any, of the amount on deposit in the Yield Supplement
Account on such Payment Date (after giving effect to the withdrawal of the Yield
Supplement Withdrawal Amount for such Payment Date) over the Specified Yield
Supplement Amount with respect to such Payment Date.

         SECTION 5.7 Reserve Account. (a) On or prior to the Closing Date, the
Issuer, the Reserve Account Securities Intermediary and the Indenture Trustee
shall have entered into the Reserve Account Control Agreement pursuant to which
the Reserve Account shall be established and maintained for the benefit of the
Noteholders and the Certificateholders. Pursuant to Section 2.5 of the Trust
Agreement, on the Closing Date, the Owner Trustee shall deposit the Reserve
Account Initial Deposit into the Reserve Account.

         (b) If the depositary of the Reserve Account ceases to be either a
Qualified Institution or a Qualified Trust Institution, as applicable, the
Issuer shall cause the Reserve Account to be moved to a Qualified Institution or
a Qualified Trust Institution and the Indenture Trustee shall cause the
depositary maintaining the new Reserve Account to assume the obligations of the
existing Reserve Account Securities Intermediary under the Reserve Account
Control Agreement unless the Rating Agency Condition is satisfied in connection
with such depositary's ceasing to be a Qualified Institution or a Qualified
Trust Institution, as the case may be.

         (c) All amounts held in the Reserve Account shall be invested in
accordance with the Reserve Account Control Agreement at the written direction
of the Class R Certificateholder to the extent provided in Section 8.3(a) and
Section 8.3(c) of the Indenture in Permitted Investments that mature not later
than the Deposit Date next succeeding the date of investment except, if the
Reserve Account Securities Intermediary and the Indenture Trustee are the same
Person, investments on which the Indenture Trustee is the obligor (including
repurchase agreements on which the Indenture Trustee, in its commercial
capacity, is liable as principal) may mature on the next succeeding Payment
Date; provided, however, that amounts on deposit in the Reserve Account may be
invested in Permitted Investments that mature later than the next succeeding
Deposit Date, but in no event that mature later than 90 days after the date of
investment, if the Rating Agency Condition is satisfied. Once amounts on deposit
in the Reserve Account are invested in Permitted Investments, such Permitted
Investments must be held or maintained until they mature on or before the dates
described above.

         (d) On each Payment Date, the Indenture Trustee shall withdraw from the
Reserve Account and pay to the Class R Certificateholder the sum of (i) all
investment earnings (net of losses and investment expenses) credited to the
Reserve Account since the prior Payment Date and (ii) the excess, if any, of the
amount on deposit in the Reserve Account over the Specified Reserve Account
Balance with respect to such Payment Date (after giving effect to all deposits
therein or withdrawals therefrom on such Payment Date). Upon any distribution to
the Class R Certificateholder of amounts from the Reserve Account, the Holders
will have no rights in, or claims, to, such amounts. Amounts properly
distributed to the Class R Certificateholder from the Reserve Account shall not
be available under any circumstances to the Indenture Trustee, and the Class R
Certificateholder shall not in any event thereafter be required to refund any
such distributed amounts.

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                                                                              41

         SECTION 5.8 Net Deposits. Chase USA (in its capacity as the Seller or
the Servicer) may make the remittances pursuant to Sections 5.2 and 5.4 above,
net of amounts to be retained by it or distributed to it (also in any such
capacity) pursuant to Section 4.7 (if applicable) and Section 5.5, if (a) it
shall be the Servicer and (b) it is entitled, pursuant to Section 5.2, to make
deposits on a monthly basis, rather than a daily basis. Nonetheless, the
Servicer shall account for all of the above-described amounts as if such amounts
were deposited and distributed separately.

         SECTION 5.9 Statements to Certificateholders and Noteholders. (a) On
each Payment Date, the Servicer shall provide to the Indenture Trustee and the
Paying Agent (for the Paying Agent to forward to each Noteholder of record
pursuant to the Indenture) and to the Owner Trustee (for the Owner Trustee to
forward to each Certificateholder of record pursuant to the Trust Agreement) a
statement substantially in the form of Exhibit B (or such other form that is
acceptable to the Indenture Trustee, the Owner Trustee and the Servicer), with a
copy to the Rating Agencies, setting forth at least the following information as
to the Notes (separately stating such information as to the Class A-1 Notes, the
Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes) and the
Certificates, to the extent applicable:

                  (i) the amount of such distribution allocable to principal on
         each class of Notes and the Certificates;

                  (ii) the amount of such distribution allocable to interest on
         each class of Notes and the Certificates;

                  (iii) the amount of the Servicing Fee paid to the Servicer
         pursuant to Section 5.5(c);

                  (iv) the amount of the Administration Fee paid to the
         Administrator on such Payment Date;

                  (v) the Outstanding Amount of each class of the Notes, the
         Class A-1 Note Pool Factor, the Class A-2 Note Pool Factor, the Class
         A-3 Note Pool Factor, the Class A-4 Note Pool Factor, the Certificate
         Balance and the Certificate Pool Factor, in each case after giving
         effect to payments allocated to principal reported under (i) above;

                  (vi) the Pool Balance as of the last day of the preceding
         Collection Period;

                  (vii) the aggregate amount of the Repurchase Amounts for
         Repurchased Receivables with respect to the related Collection Period
         paid by each of the Seller and the Servicer (accounted for separately);

                  (viii) the amount of Aggregate Net Losses, if any, for such
         Payment Date;

<PAGE>
                                                                              42

                  (ix) the balance of the Yield Supplement Account on such
         Payment Date, after giving effect to the withdrawal of the Yield
         Supplement Withdrawal Amount for such Payment Date;

                  (x) the balance of the Reserve Account on such Payment Date,
         after giving effect to deposits into and withdrawals from the Reserve
         Account on such Payment Date;

                  (xi) the Specified Reserve Account Balance for such Payment
         Date;

                  (xii) the Total Distribution Amount for such Payment Date;

                  (xiii) the Noteholders' Distributable Amount and the
         components thereof;

                  (xiv) the Certificateholders' Distributable Amount and the
         components thereof;

                  (xv) the Yield Supplement Withdrawal Amount for such Payment
         Date; and

                  (xvi) the Reserve Account Transfer Amount, if any, for such
         Payment Date.

         Each amount set forth pursuant to subclause (i), (ii), (iii), (iv),
(xii) or (xiii) above shall be expressed as a dollar amount per $1,000 of
original principal balance of a Note or a Certificate, as applicable.

                                   ARTICLE VI

                                   THE SELLER

         SECTION 6.1 Representations of Seller. The Seller makes the following
representations on which the Issuer shall rely in acquiring the Receivables. The
representations shall speak as of the execution and delivery of this Agreement,
and shall survive the sale of the Receivables to the Issuer and pledge thereof
to the Indenture Trustee pursuant to the Indenture.

                  (i) Organization and Good Standing. The Seller has been duly
         organized and is validly existing as a national banking association in
         good standing under the laws of the United States of America, with
         power and authority to own its properties and to conduct its business
         as such properties are currently owned and such business is presently
         conducted, and had at all relevant times, and has, power, authority,
         and legal right to acquire and own the Receivables.

                  (ii) Power and Authority. The Seller has the power and
         authority to execute and deliver this Agreement and the other Basic
         Documents to which it is a party and to carry out their respective
         terms, the Seller has full power and authority to sell and assign the
         property to be sold and assigned to the Issuer as the Owner Trust
         Estate and has duly authorized such sale and assignment to the Issuer
         by all necessary corporate action; and the execution, delivery, and
         performance of this Agreement and the other Basic Documents to which it
         is a party has been duly authorized by the Seller by all necessary
         action.

<PAGE>
                                                                              43

                  (iii) Valid Sale; Binding Obligations. This Agreement effects
         a valid sale, transfer, and assignment of the Receivables, enforceable
         against creditors of and purchasers from the Seller; this Agreement and
         each of the other Basic Documents to which it is a party constitutes a
         legal, valid, and binding obligation of the Seller enforceable in
         accordance with its terms, except as enforceability may be limited by
         bankruptcy, insolvency, reorganization, or other similar laws affecting
         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.

                  (iv) No Violation. The consummation of the transactions
         contemplated by this Agreement and the other Basic Documents and the
         fulfillment of the terms hereof and thereof do not conflict with,
         result in any breach of any of the terms and provisions of, nor
         constitute (with or without notice or lapse of time) a default under,
         the articles of association or bylaws of the Seller, or conflict with
         or breach any of the material terms or provisions of, or constitute
         (with or without notice or lapse of time) a default under, any
         indenture, agreement, or other instrument to which the Seller is a
         party or by which it is bound; nor result in the creation or imposition
         of any lien upon any of its properties pursuant to the terms of any
         such indenture, agreement, or other instrument; nor violate any law or,
         to the best of the Seller's knowledge, any order, rule, or regulation
         applicable to the Seller of any court or of any federal or state
         regulatory body, administrative agency, or other governmental
         instrumentality having jurisdiction over the Seller or its properties.

                  (v) No Proceedings. There are no proceedings or investigations
         pending, or, to the Seller's best knowledge, threatened, before any
         court, regulatory body, administrative agency, or other governmental
         instrumentality having jurisdiction over the Seller or its properties:
         (a) asserting the invalidity of this Agreement, any other Basic
         Document, the Notes or the Certificates, (b) seeking to prevent the
         issuance of the Notes or the Certificates or the consummation of any of
         the transactions contemplated by this Agreement or any other Basic
         Document, (c) seeking any determination or ruling that might materially
         and adversely affect the performance by the Seller of its obligations
         under, or the validity or enforceability of, this Agreement, any other
         Basic Document, or the Notes or the Certificates, or (d) relating to
         the Seller and which might adversely affect the federal or state income
         tax attributes of the Notes or the Certificates.

         SECTION 6.2 Liability of Seller; Indemnities. The Seller shall be
liable in accordance herewith only to the extent of the obligations specifically
undertaken by the Seller in such capacity under this Agreement and shall have no
other obligations or liabilities hereunder.

         The Seller shall indemnify, defend and hold harmless the Issuer, the
Owner Trustee and the Indenture Trustee from and against any taxes that may at
any time be asserted against any such Person with respect to, and as of the date
of, the sale of the Receivables to the Issuer or the issuance and original sale
of the Notes and the Certificates, including any sales, gross receipts, general
corporation, tangible or intangible personal property, privilege, or license
taxes (but not including any taxes asserted with respect to ownership of the
Receivables or federal or other income taxes, including franchise taxes measured
by net income), arising out of the transactions contemplated by this Agreement
and the other Basic Documents, and costs and expenses in defending against the
same.

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                                                                              44

         The Seller shall indemnify, defend, and hold harmless the Issuer, the
Owner Trustee and the Indenture Trustee from and against any loss, liability or
expense incurred by reason of (i) the Seller's willful misfeasance, bad faith,
or gross negligence in the performance of its duties hereunder, or by reason of
reckless disregard of the obligations and duties hereunder and (ii) the Seller's
violation of federal or state securities laws in connection with the
registration of the sale of the Notes and the Certificates.

         Indemnification under this Section 6.2 shall include reasonable fees
and expenses of counsel and expenses of litigation. If the Seller shall have
made any indemnity payments to the Issuer, the Owner Trustee or the Indenture
Trustee, respectively, pursuant to this Section 6.2 and the Issuer, the Owner
Trustee or the Indenture Trustee, respectively, thereafter shall collect any of
such amounts from others, the Issuer, the Owner Trustee or the Indenture
Trustee, respectively, shall repay such amounts to the Seller, without interest.

         SECTION 6.3 Merger or Consolidation of Seller. Any corporation or other
entity (i) into which the Seller may be merged or consolidated, (ii) which may
result from any merger, conversion, or consolidation to which the Seller shall
be a party, or (iii) which may succeed to all or substantially all of the
business of the Seller, which corporation or other entity shall be bound to
perform every obligation of the Seller under this Agreement, shall be the
successor to the Seller hereunder without the execution or filing of any
document or any further act by any of the parties to this Agreement. The Seller
shall give prompt written notice of any merger or consolidation to the Issuer,
the Owner Trustee, the Indenture Trustee, the Servicer and the Rating Agencies.

         SECTION 6.4 Limitation on Liability of Seller and Others. The Seller
and any director, officer, employee or agent of the Seller may rely in good
faith on the advice of counsel or on any document of any kind, prima facie
properly executed and submitted by any Person respecting any matters arising
hereunder or under any other Basic Documents. The Seller shall not be under any
obligation under this Agreement to appear in, prosecute, or defend any legal
action that shall be unrelated to its obligations under this Agreement or any
other Basic Document, and that in its opinion may involve it in any expense or
liability.

         SECTION 6.5 Seller May Own Notes and Certificates. The Seller or any of
its Affiliates may in its individual or any other capacity become the owner or
pledgee of Notes or Certificates with the same rights as it would have if it
were not the Seller or an Affiliate thereof, except as otherwise provided in the
definition of "Outstanding" specified in Section 1.1. Notes or Certificates so
owned by or pledged to the Seller or any Affiliate thereof shall have an equal
and proportionate benefit under the provisions of this Agreement, without
preference, priority, or distinction as among all of the Notes or Certificates,
as applicable.

<PAGE>
                                                                              45

                                  ARTICLE VII

                                  THE SERVICER

         SECTION 7.1 Representations of Servicer. The Servicer makes the
following representations on which the Issuer shall rely in acquiring the
Receivables. The representations shall speak as of the execution and delivery of
this Agreement (or as of a date a Person (other than the Indenture Trustee)
becomes Servicer pursuant to Section 7.3 or Section 8.2), and shall survive the
sale of the Receivables to the Issuer and the pledge thereof to the Indenture
Trustee pursuant to the Indenture.

                  (i) Organization and Good Standing. The Servicer has been duly
         organized and is validly existing as a national banking association or
         corporation and is in good standing under the laws of the United States
         of America or the jurisdiction of its incorporation, with power and
         authority to own its properties and to conduct its business as such
         properties are currently owned and such business is presently
         conducted, and had at all relevant times, and has, power, authority,
         and legal right to acquire, own, sell, and service the Receivables and
         to hold the Receivable Files as custodian on behalf of the Issuer.

                  (ii) Power and Authority. The Servicer has the power and
         authority to execute and deliver this Agreement and the Basic Documents
         to which it is a party and to carry out the terms thereof; and the
         execution, delivery, and performance of this Agreement and the other
         Basic Documents has been duly authorized by the Servicer by all
         necessary action.

                  (iii) Binding Obligations. This Agreement and the other Basic
         Documents to which it is a party constitute legal, valid, and binding
         obligations of the Servicer enforceable in accordance with their
         respective terms subject, as to enforcement, to applicable bankruptcy,
         insolvency, reorganization, liquidation or other similar laws and
         equitable principles relating to or affecting the enforcement of
         creditors' rights, whether considered in a proceeding at law or in
         equity.

                  (iv) No Violation. The consummation of the transactions
         contemplated by this Agreement and the other Basic Documents and the
         fulfillment of the terms hereof and thereof do not conflict with,
         result in any breach of any of the terms and provisions of, nor
         constitute (with or without notice or lapse of time) a default under,
         the articles of association or bylaws of the Servicer, or conflict with
         or breach any of the material terms or provisions of, or constitute
         (with or without notice or lapse of time) a default under, any
         indenture, agreement, or other instrument to which the Servicer is a
         party or by which it is bound; nor result in the creation or imposition
         of any lien upon any of its properties pursuant to the terms of any
         such indenture, agreement, or other instrument; nor violate any law or,
         to the best of the Servicer's knowledge, any order, rule, or regulation
         applicable to the Servicer of any court or of any federal or state
         regulatory body, administrative agency, or other governmental
         instrumentality having jurisdiction over the Servicer or its
         properties.

<PAGE>
                                                                              46

                  (v) No Proceedings. There are no proceedings or investigations
         pending, or to the Servicer's best knowledge, threatened, before any
         court, regulatory body, administrative agency, or other governmental
         instrumentality having jurisdiction over the Servicer or its
         properties: (a) asserting the invalidity of this Agreement, the Notes
         or the Certificates, (b) seeking to prevent the issuance of the Notes
         or the Certificates or the consummation of any of the transactions
         contemplated by this Agreement or any other Basic Document, (c) seeking
         any determination or ruling that might materially and adversely affect
         the performance by the Servicer of its obligations under, or the
         validity or enforceability of, this Agreement, any other Basic
         Document, the Notes or the Certificates, or (d) relating to the
         Servicer and which might adversely affect the federal or state income
         tax attributes of the Notes or the Certificates.

                  (vi) Fidelity Bond. The Servicer maintains a fidelity bond in
         such form and amount as is customary for banks acting as custodian of
         funds and documents in respect of retail automotive installment sales
         contracts.

         SECTION 7.2 Liability of Servicer; Indemnities. The Servicer shall be
liable in accordance herewith only to the extent of the obligations specifically
undertaken by the Servicer under this Agreement and shall have no other
obligations or liabilities hereunder.

                  (i) The Servicer shall defend, indemnify, and hold harmless
         the Issuer, the Owner Trustee, the Indenture Trustee and the Holders
         from and against any and all costs, expenses, losses, damages, claims,
         and liabilities, arising out of or resulting from the use, ownership,
         or operation by the Servicer or any Affiliate thereof of a Financed
         Vehicle.

                  (ii) The Servicer shall indemnify, defend, and hold harmless
         the Issuer, the Owner Trustee and the Indenture Trustee from and
         against any taxes that may at any time be asserted against the Issuer
         with respect to the transactions contemplated in this Agreement,
         including, without limitation, any sales, gross receipts, general
         corporation, tangible or intangible personal property, privilege, or
         license taxes (but not including any taxes asserted with respect to,
         and as of the date of, the sale of the Receivables to the Issuer or the
         issuance and original sale of the Notes or the Certificates, or
         asserted with respect to ownership of the Receivables or federal, state
         or other income taxes, including franchise taxes measured by net
         income) arising out of distributions on the Notes or the Certificates
         and costs and expenses in defending against the same.

                  (iii) The Servicer shall indemnify, defend, and hold harmless
         the Issuer, the Owner Trustee, the Indenture Trustee and the Holders
         from and against any and all costs, expenses, losses, claims, damages,
         and liabilities to the extent that such cost, expense, loss, claim,
         damage, or liability arose out of, or was imposed upon the Issuer, the
         Owner Trustee, the Indenture Trustee or the Holders through the willful
         misfeasance, gross negligence, or bad faith of the Servicer in the
         performance of its duties under this Agreement or by reason of reckless
         disregard of its obligations and duties under this Agreement.

<PAGE>
                                                                              47

         Indemnification under this Section 7.2 shall include reasonable fees
and expenses of counsel and expenses of litigation. If the Servicer shall have
made any indemnity payments pursuant to this Section 7.2 and the recipient
thereafter collects any of such amounts from others, the recipient shall
promptly repay such amounts to the Servicer, without interest. The
indemnification obligations of the Servicer set forth in this Section 7.2 shall
survive the termination of such Servicer with respect to any act or failure to
act which occurs prior to such Servicer's termination. The provisions of Section
6.7 of the Indenture and Sections 8.1 and 8.2 of the Trust Agreement with
respect to the Servicer's obligations are incorporated by reference herein.

         SECTION 7.3 Merger or Consolidation of Servicer. Any corporation or
other entity (i) into which the Servicer may be merged or consolidated, (ii)
which may result from any merger, conversion, or consolidation to which the
Servicer shall be a party, or (iii) which may succeed to all or substantially
all of the business of the Servicer, which corporation or other entity shall be
bound to perform every obligation of the Servicer hereunder, shall be the
successor to the Servicer under this Agreement without the execution or filing
of any document or any further act on the part of any of the parties to this
Agreement. The Servicer shall promptly inform the Issuer, the Owner Trustee, the
Indenture Trustee, the Seller and the Rating Agencies in writing of any such
merger or consolidation.

         SECTION 7.4 Limitation on Liability of Servicer and Others. (a) Neither
the Servicer nor any of the directors or officers or employees or agents of the
Servicer shall be under any liability to the Issuer, the Owner Trustee, the
Indenture Trustee or the Holders, except as provided under this Agreement, for
any action taken or for refraining from the taking of any action pursuant to
this Agreement; provided, however, that this provision shall not protect the
Servicer or any such person against any liability that would otherwise be
imposed by reason of willful misfeasance, gross negligence, or bad faith in the
performance of duties or by reason of reckless disregard of obligations and
duties under this Agreement. The Servicer and any director or officer or
employee or agent of the Servicer may rely in good faith on the advice of
counsel or on any document of any kind prima facie properly executed and
submitted by any Person respecting any matters arising under this Agreement.

         (b) The Servicer, and any director, or officer, employee or agent of
the Servicer, shall be indemnified by the Issuer and held harmless against any
loss, liability, or expense (including reasonable attorneys' fees and expenses)
incurred in connection with any legal action relating to the performance of the
Servicer's duties under this Agreement, other than (i) any loss or liability
otherwise reimbursable pursuant to this Agreement or the Basic Documents; (ii)
any loss, liability, or expense incurred solely by reason of the Servicer's
willful misfeasance, negligence, or bad faith in the performance of its duties
hereunder or by reason of reckless disregard of its obligations and duties under
this Agreement or the Basic Documents; and (iii) any loss, liability, or expense
for which the Issuer is to be indemnified by the Servicer under this Agreement
or the Basic Documents. Any amounts due the Servicer pursuant to this Section
7.4 shall be payable on a Payment Date from amounts distributable to the Class R
Certificateholder from the Reserve Account pursuant to Section 5.7(d).

         (c) Except as provided in this Agreement, the Servicer shall not be
under any obligation to appear in, prosecute, or defend any legal action that
shall not be incidental to its obligations under this Agreement, and that in its
opinion may involve it in any expense or liability; provided, however, that the
Servicer may undertake any reasonable action that it may deem necessary or
desirable in respect of this Agreement and the rights and duties of the parties
to this Agreement and the interests of the Holders under this Agreement. In such
event, the legal expenses and costs of such action and any liability resulting
therefrom shall be expenses, costs, and liabilities of the Issuer, and the
Servicer shall be entitled to be reimbursed therefor. Any amounts due the
Servicer pursuant to this Section 7.4 shall be payable on a Payment Date from
amounts distributable to the Class R Certificateholder from the Reserve Account
pursuant to Section 5.7(d) and from amounts distributable to the Class R
Certificateholder from the Yield Supplement Account pursuant to Section 5.6(d).

<PAGE>
                                                                              48

         The Person to be indemnified shall provide the Issuer, the Owner
Trustee and the Indenture Trustee with a certificate and accompanying Opinion of
Counsel requesting indemnification and setting forth the basis for such request.

         SECTION 7.5 Servicer Not To Resign. Except as permitted by Section 7.3,
the Servicer shall not resign from its obligations and duties under this
Agreement except (i) upon determination that the performance of its duties shall
no longer be permissible under applicable law or (ii) in the event of the
appointment of a successor Servicer, upon satisfaction of the Rating Agency
Condition. Notice of any such determination permitting the resignation of the
Servicer shall be communicated to the Issuer, the Indenture Trustee, the Owner
Trustee and the Rating Agencies at the earliest practicable time (and, if such
communication is not in writing, shall be confirmed in writing at the earliest
practicable time) and any such determination permitting the resignation of the
Servicer shall be evidenced by an Opinion of Counsel to such effect delivered to
the Issuer, the Indenture Trustee and the Owner Trustee concurrently with such
notice. No such resignation shall become effective until the Indenture Trustee
(which shall not be obligated to act as successor Servicer if the Servicer has
resigned for a reason other than that the performance of its duties are no
longer permissible under applicable law) or a successor Servicer shall have
assumed the responsibilities and obligations of the Servicer hereunder in
accordance with Section 8.2.

         SECTION 7.6 Delegation of Duties. So long as Chase USA acts as
Servicer, the Servicer shall have the right, in the ordinary course of its
business, to delegate any of its duties under this Agreement to any Person. The
Servicer shall pay any compensation payable to such Person from its own funds
and none of the Issuer, the Owner Trustee, the Indenture Trustee or the Holders
shall have any liability to such Person with respect thereto. Notwithstanding
any delegation of duties by the Servicer pursuant to this Section 7.6, the
Servicer shall not be relieved of its liability and responsibility with respect
to such duties, and any such delegation shall not constitute a resignation
within the meaning of Section 7.5. Any agreement that may be entered into by the
Servicer and a Person that provides for any delegation of the Servicer's duties
hereunder to such Person shall be deemed to be between the Servicer and such
Person alone, and the Issuer, the Owner Trustee, the Indenture Trustee and
Holders shall not be deemed parties thereto and shall have no claims, rights,
obligations, duties or liabilities with respect thereto.

<PAGE>
                                                                              49

                                  ARTICLE VIII

                         EVENTS OF SERVICING TERMINATION

         SECTION 8.1 Events of Servicing Termination. Any one of the following
events which shall occur and be continuing shall constitute an event of
servicing termination hereunder (each, an "Event of Servicing Termination"):

                  (i) Any failure by the Servicer to deliver to the Indenture
         Trustee the Servicer's Certificate for the related Collection Period,
         or any failure by the Servicer to deliver to the Indenture Trustee, for
         deposit in any of the Trust Accounts or the Certificate Distribution
         Account, any proceeds or payment required to be so delivered under the
         terms of the Certificates or the Notes and this Agreement (or, in the
         case of a payment or deposit to be made not later than the Deposit
         Date, the failure to make such payment or deposit on such Deposit
         Date), which failure continues unremedied for a period of five Business
         Days after (A) discovery by an officer of the Servicer or (B) written
         notice (1) to the Servicer by the Indenture Trustee or the Owner
         Trustee or (2) to the Indenture Trustee or the Owner Trustee, as
         applicable, and the Servicer by the Holders of Notes evidencing not
         less than 25% of the Outstanding Amount of the Notes (or, if the Notes
         have been paid in full, by Holders of the Certificates evidencing not
         less than 25% of the Certificate Balance);

                  (ii) Failure on the part of the Servicer duly to observe or to
         perform in any material respect any other covenants or agreements of
         the Servicer set forth in this Agreement or the Indenture, which
         failure shall (a) materially and adversely affect the rights of the
         Issuer or the Holders, and (b) continue unremedied for a period of 60
         days after the date on which written notice of such failure, requiring
         the same to be remedied, shall have been given (1) to the Servicer by
         the Indenture Trustee or the Owner Trustee, or (2) to the Indenture
         Trustee or the Owner Trustee, as applicable, and the Servicer by the
         Holders of Notes evidencing not less than 25% of the Outstanding Amount
         of the Notes (or, if the Notes have been paid in full, by Holders of
         the Certificates evidencing not less than 25% of the Certificate
         Balance);

                  (iii) The entry of a decree or order by a court or agency or
         supervisory authority having jurisdiction in the premises for the
         appointment of a conservator, receiver, or liquidator for the Servicer
         in any insolvency, readjustment of debt, marshalling of assets and
         liabilities, or similar proceedings, or for the winding up or
         liquidation of its affairs, and the continuance of any such decree or
         order unstayed and in effect for a period of 60 consecutive days; or

                  (iv) The consent by the Servicer to the appointment of a
         conservator or receiver or liquidator in any insolvency, readjustment
         of debt, marshalling of assets and liabilities, or similar proceedings
         of or relating to the Servicer or of or relating to substantially all
         of its property; or the Servicer shall admit in writing its inability
         to pay its debts generally as they become due, file a petition to take
         advantage of any applicable insolvency or reorganization statute, make
         an assignment for the benefit of its creditors, or voluntarily suspend
         payment of its obligations.

<PAGE>
                                                                              50

         Upon the occurrence of any Event of Servicing Termination as described
above, and in each and every case and for so long as such Event of Servicing
Termination shall not have been remedied, either the Indenture Trustee or the
Holders of Notes evidencing not less than a majority of the Outstanding Amount
of the Notes (or, if the Notes have been paid in full and the Indenture has been
discharged in accordance with its terms, by the Owner Trustee or the Holders of
Certificates evidencing not less than a majority of the Certificate Balance), by
notice given in writing to the Servicer (and to the Indenture Trustee or the
Owner Trustee, as applicable, if given by Holders) may terminate all of the
rights and obligations of the Servicer under this Agreement. On or after the
receipt by the Servicer of such written notice, all authority and power of the
Servicer under this Agreement, whether with respect to the Certificates, the
Notes or the Receivables or otherwise, shall pass to and be vested in the
Indenture Trustee pursuant to this Section 8.1; and, without limitation, the
Indenture Trustee shall be hereby authorized and empowered to execute and
deliver, on behalf of the predecessor Servicer, as attorney-in-fact or
otherwise, any and all documents and other instruments, and to do or accomplish
all other acts or things necessary or appropriate to effect the purposes of such
notice of termination, whether to complete the transfer and endorsement of the
Receivable Files, or otherwise. The predecessor Servicer shall cooperate with
the successor Servicer and the Indenture Trustee in effecting the termination of
the responsibilities and rights of the predecessor Servicer under this
Agreement, including the transfer to the successor Servicer for administration
by it of all cash amounts that shall at the time be held by the predecessor
Servicer for deposit, shall have been deposited by the predecessor Servicer in
the Collection Account, or shall thereafter be received with respect to a
Receivable. All reasonable costs and expenses (including attorneys' fees and
disbursements) incurred in connection with transferring the Receivable Files to
the successor Servicer and amending this Agreement to reflect such succession as
Servicer pursuant to this Section 8.1 shall be paid by the predecessor Servicer
upon presentation of reasonable documentation of such costs and expenses. The
Indenture Trustee and the Owner Trustee shall give written notice of any
termination of the Servicer to their related Holders, and the Indenture Trustee
shall give such notice to the Rating Agencies. Neither the Indenture Trustee nor
any successor Servicer shall be deemed to be in default hereunder by reason of
its failure to make, or any delay in making, any distribution hereunder or any
portion thereof which was caused by (i) the failure of the predecessor Servicer
to deliver, or any delay in delivering cash, documents or records to it, or (ii)
restrictions imposed by any regulatory authority having jurisdiction over the
predecessor Servicer.

         SECTION 8.2 Indenture Trustee to Act; Appointment of Successor
Servicer. Upon the Servicer's receipt of notice of termination pursuant to
Section 8.1 or resignation pursuant to Section 7.5, the Indenture Trustee shall
be the successor in all respects to the Servicer in its capacity as Servicer
under this Agreement, and shall be subject to all the responsibilities, duties
and liabilities arising thereafter relating thereto placed on the Servicer by
the terms and provisions of this Agreement. As compensation therefor, the
Indenture Trustee shall be entitled to such compensation (whether payable out of
the Collection Account or otherwise) as the Servicer would have been entitled to
under this Agreement if no such notice of termination or resignation had been
given. Notwithstanding the above, the Indenture Trustee may, if it shall be
unwilling so to act, or shall, if it shall be legally unable so to act, appoint,
or petition a court of competent jurisdiction to appoint, any established
financial institution (x) having a net worth of not less than $100,000,000 as of
the last day of the most recent fiscal quarter for such institution and (y)
whose regular business shall include the servicing of automobile receivables, as

<PAGE>
                                                                              51

successor Servicer under this Agreement; provided, that the appointment of any
such successor Servicer is required to satisfy the Rating Agency Condition. In
connection with such appointment, the Indenture Trustee may make such
arrangements for the compensation of such successor Servicer out of payments on
Receivables as it and such successor Servicer shall agree; provided, however,
that no such compensation shall be in excess of that permitted the Servicer
under this Agreement. The Indenture Trustee and such successor Servicer shall
take such action, consistent with this Agreement, as shall be necessary to
effectuate any such succession. Unless the Indenture Trustee shall be prohibited
by law from so acting, the Indenture Trustee shall not be relieved of its duties
as successor Servicer under this Section 8.2 until the newly appointed successor
Servicer shall have assumed the responsibilities and obligations of the Servicer
under this Agreement.

         SECTION 8.3 Notification to Noteholders and Certificateholders. Upon
any Event of Servicing Termination, or appointment of a successor Servicer
pursuant to this Article VIII, the Owner Trustee shall give prompt written
notice thereof to Certificateholders and the Indenture Trustee shall give prompt
written notice thereof to the Noteholders, at their respective addresses of
record, and to the Rating Agencies.

         SECTION 8.4 Waiver of Past Defaults. The Holders of Notes evidencing at
least a majority of the Outstanding Amount of the Notes (or, the Holders of
Certificates evidencing not less than a majority of the Certificate Balance, in
the case of any Event of Servicing Termination that does not adversely affect
the Indenture Trustee or the Noteholders) may, on behalf of all such Holders,
waive any default by the Servicer in the performance of its obligations
hereunder and its consequences, except a default in the failure to make any
required deposits to or payments from any of the Trust Accounts or the
Certificate Distribution Account in accordance with this Agreement. Upon any
such waiver of a past default, such default shall cease to exist, and any Event
of Servicing Termination arising therefrom shall be deemed to have been remedied
for every purpose of this Agreement. No such waiver shall extend to any
subsequent or other default or impair any right consequent thereon except to the
extent expressly so waived. The Servicer shall give prompt written notice of any
waiver to the Rating Agencies; provided, however, that the Indenture Trustee or
the Owner Trustee shall only be required to give such notice if a Responsible
Officer thereof has actual knowledge of the related event.

                                   ARTICLE IX

                                   TERMINATION

         SECTION 9.1 Optional Purchase of All Receivables; Trust Termination.
(a) As of the last day of any Collection Period as of which the Pool Balance
shall be equal to or less than the Optional Purchase Percentage of the Original
Pool Balance, the Servicer shall have the option to purchase the Owner Trust
Estate, other than the Trust Accounts and the Certificate Distribution Account.
To exercise such option, the Servicer shall notify the Indenture Trustee, the
Owner Trustee, the Note Registrar and the Certificate Registrar in writing, no
later than the 25th day of the Collection Period following which purchase is to
be effected, shall pay the aggregate Repurchase Amount for the Receivables
(including Defaulted Receivables) and shall succeed to all interests in, to and
under such property. The payment shall be made in the manner specified in
Section 5.4, and shall be distributed pursuant to Section 5.5. The Indenture
Trustee shall not permit the purchase of the Owner Trust Estate pursuant to this
Section 9.1 unless (i) the Servicer's long-term unsecured debt is rated at the
time of such purchase at least "BBB-" by Standard & Poor's and Fitch (if rated
by Fitch) and Baa3 by Moody's or (ii) the Servicer provides to the Indenture
Trustee an Opinion of Counsel in form and substance satisfactory to the Rating
Agencies to the effect that such purchase will not constitute a fraudulent
transfer under applicable state and federal law.

<PAGE>
                                                                              52

         (b) Upon any sale of the assets of the Issuer pursuant to Article V of
the Indenture, the Servicer shall instruct the Indenture Trustee in writing to
deposit the proceeds from such sale after all payments and reserves therefrom
(including the expenses of such sale) have been made (the "Sale Proceeds") in
the Collection Account. On the Payment Date on which the Sale Proceeds are
deposited in the Collection Account (or, if such proceeds are not so deposited
on a Payment Date, on the Payment Date immediately following such deposit), the
Servicer shall instruct the Indenture Trustee in writing to make, and the
Indenture Trustee shall make, the following deposits and distributions (after
the application on such Payment Date of the Total Distribution Amount pursuant
to Section 5.5) from the Sale Proceeds and any funds remaining on deposit in the
Yield Supplement Account and the Reserve Account (including the proceeds of any
sale of investments therein):

                  (i) to the Note Distribution Account, any portion of the
         Noteholders' Interest Distributable Amount not otherwise deposited into
         the Note Distribution Account on such Payment Date;

                  (ii) to the Note Distribution Account, the Outstanding Amount
         of the Notes (after giving effect to the reduction in the Outstanding
         Amount of the Notes resulting from the deposits made in the Note
         Distribution Account on such Payment Date);

                  (iii) to the Certificate Distribution Account, any portion of
         the Certificateholders' Interest Distributable Amount not otherwise
         deposited into the Certificate Distribution Account on such Payment
         Date; and

                  (iv) to the Certificate Distribution Account, the Certificate
         Balance and any Certificateholders' Principal Carryover Shortfall
         (after giving effect to the reduction in the Certificate Balance
         resulting from the deposits made in the Certificate Distribution
         Account on such Payment Date).

         Any Sale Proceeds remaining after the deposits described above shall be
paid to the Class R Certificateholder.

         (c) Notice of any termination of the Issuer shall be given by the
Servicer to the Owner Trustee, the Indenture Trustee and the Rating Agencies as
soon as practicable after the Servicer has received notice thereof.

         (d) After the payment to the Indenture Trustee, the Owner Trustee, the
Holders and the Servicer of all amounts required to be paid under this
Agreement, the Indenture and the Trust Agreement, any amounts on deposit in the
Yield Supplement Account, the Reserve Account or the Collection Account shall be
paid to the Class R Certificateholder, and any other assets remaining in the
Owner Trust Estate shall be distributed to the Class R Certificateholder.

<PAGE>
                                                                              53

                                   ARTICLE X

                            MISCELLANEOUS PROVISIONS

         SECTION 10.1 Amendment. This Agreement may be amended by the Seller,
the Servicer and the Owner Trustee, on behalf of the Issuer, with the prior
consent of the Indenture Trustee and prior notice to the Rating Agencies but
without prior notice to or the consent of any of the Holders, (i) to cure any
ambiguity, to correct or supplement any provisions in this Agreement which may
be inconsistent with any other provisions herein, to evidence a succession to
the Servicer or the Seller pursuant to this Agreement or to add any other
provisions with respect to matters or questions arising under this Agreement
that shall not be inconsistent with the provisions of this Agreement; provided,
however, that such action shall not, as evidenced by an Officer's Certificate
and/or an Opinion of Counsel reasonably acceptable and delivered to the Owner
Trustee and the Indenture Trustee, adversely and materially affect the interests
of the Issuer or any of the Holders; provided, further, that the Servicer shall
deliver written notice of such changes to each Rating Agency prior to the
execution of any such amendment, or (ii) to effect a transfer or assignment in
compliance with Section 10.6 of this Agreement. Notwithstanding the foregoing,
no amendment modifying the provisions of Section 5.5 shall become effective
without satisfaction of the Rating Agency Condition.

         This Agreement may also be amended from time to time by the Seller, the
Servicer and the Owner Trustee, on behalf of the Issuer, with the consent of the
Indenture Trustee, the Holders of Certificates evidencing at least a majority of
the Certificate Balance of the Certificates and the consent of the Holders of
Notes evidencing at least a majority of the Outstanding Amount of the Notes, for
the purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of this Agreement, or of modifying in any manner the
rights of the Noteholders or the Certificateholders (including effecting a
transfer or assignment in compliance with Section 10.6 of this Agreement);
provided, however, that no such amendment, except with the consent of the
Holders of all Certificates or Notes, as applicable, then outstanding, shall (a)
increase or reduce in any manner the amount of, or accelerate or delay the
timing of, collections of payments of Receivables, or distributions that shall
be required to be made on any Certificate or Note, or (b) reduce the aforesaid
percentage of the Certificate Balance of the Certificates or the Outstanding
Amount of the Notes required to consent to any such amendment.

         Promptly after the execution of any amendment or consent referred to in
this Section 10.1, the Owner Trustee shall furnish a copy of such amendment or
consent to each Certificateholder and the Indenture Trustee, who shall promptly
furnish a copy to each Noteholder and to the Rating Agencies.

         It shall not be necessary for the consent of the Indenture Trustee, the
Certificateholders or the Noteholders pursuant to this Section 10.1 to approve
the particular form of any proposed amendment or consent, but it shall be
sufficient if such consent shall approve the substance thereof. The manner of
obtaining such consents and of evidencing the authorization of the execution
thereof by Certificateholders or Noteholders shall be subject to such reasonable
requirements as the Indenture Trustee or the Owner Trustee may prescribe.

<PAGE>
                                                                              54

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

         Satisfaction of the Rating Agency Condition is required prior to the
execution of any amendment to this Agreement, other than an amendment permitted
pursuant to clause (i) of the first paragraph of this Section 10.1.

         SECTION 10.2 Protection of Title to Owner Trust Estate. (a) The Seller
shall execute and file such financing statements and cause to be executed and
filed such continuation statements, all in such manner and in such places as may
be required by law fully to preserve, maintain, and protect the interests of the
Issuer and the Indenture Trustee in the Receivables and in the proceeds thereof.
The Servicer shall deliver (or cause to be delivered) to the Owner Trustee and
the Indenture Trustee file-stamped copies of, or filing receipts for, any
document filed as provided above, as soon as available following such filing. In
addition, the Seller hereby authorizes the Issuer at any time and from time to
time to file any financing statements and amendments thereto in any jurisdiction
as may be necessary or desirable to preserve, maintain, and protect the
interests of the Issuer and the Indenture Trustee in the Receivables and the
proceeds thereof.

         (b) Neither the Seller nor the Servicer shall change its name in any
manner that would, could, or might make any financing statement or continuation
statement filed by the Seller in accordance with paragraph (a) above seriously
misleading within the meaning of ss. 9-506 (or any comparable section) of the
Relevant UCC, unless it shall have given the Owner Trustee and the Indenture
Trustee at least 30 days prior written notice thereof.

         (c) The Seller and the Servicer shall give the Owner Trustee and the
Indenture Trustee at least 60 days prior written notice of any change in the
jurisdiction of its organization or the State designated as its location in its
Articles of Association if, as a result of such change in jurisdiction or the
State designated as its location in its Articles of Association, the applicable
provisions of the Relevant UCC would require the filing of any amendment of any
previously filed financing or continuation statement or of any new financing
statement. The Servicer shall at all times maintain each office from which it
shall service Receivables or at which the Receivable Files are located within
the United States of America.

         (d) The Servicer shall maintain accounts and records as to each
Receivable accurately and in sufficient detail to permit (i) the reader thereof
to know at any time the status of such Receivable, including payments and
recoveries made and payments owing (and the nature of each) and (ii)
reconciliation between payments or recoveries on (or with respect to) each
Receivable and the amounts from time to time deposited in the Collection Account
in respect of such Receivable.

<PAGE>
                                                                              55

         (e) The Servicer shall maintain its computer systems so that, from and
after the time of sale under this Agreement of the Receivables to the Issuer,
the Servicer's master computer records (including archives) that shall refer to
a Receivable indicate clearly, by numerical code or otherwise, that such
Receivable is owned by the Issuer and has been pledged to the Indenture Trustee.
Indication of the Issuer's and Indenture Trustee's interest in a Receivable
shall be deleted from or modified on the Servicer's computer systems when, and
only when, the Receivable shall have been paid in full, repurchased or assigned
pursuant hereto.

         (f) If at any time the Seller or the Servicer shall propose to sell,
grant a security interest in, or otherwise transfer any interest in a new or
used automobile receivable to any prospective purchaser, creditor, or other
transferee, the Seller or the Servicer, as the case may be, shall give to such
prospective purchaser, creditor, or other transferee computer tapes, records, or
print-outs (including any restored from archives) that, if they shall refer in
any manner whatsoever to any Receivable, shall indicate clearly that such
Receivable has been sold and is owned by the Issuer and has been pledged to the
Indenture Trustee.

         (g) The Servicer shall permit the Indenture Trustee and the Owner
Trustee and their respective agents upon reasonable notice at any time during
normal business hours which does not unreasonably interfere with the Servicer's
normal operations or customer or employee relations to inspect, audit, and make
copies of and abstracts from the Servicer's records regarding the Receivables.

         (h) Upon request, the Servicer shall furnish to the Owner Trustee or
the Indenture Trustee, within five Business Days, a list of all Receivables by
account number and name of Obligor then held by the Issuer, together with a
reconciliation of such list to the Schedule of Receivables and to each of the
Servicer Certificates indicating removal of Receivables from the Owner Trust
Estate.

         (i) The Servicer shall deliver to the Owner Trustee and the Indenture
Trustee:

                  (i) upon the execution and delivery of this Agreement, an
         Opinion of Counsel either (a) stating that, in the opinion of such
         counsel, all financing statements and continuation statements have been
         executed and filed that are necessary fully to preserve and protect the
         interest of the Issuer and the Indenture Trustee in the Receivables,
         and reciting the details of such filings or referring to prior Opinions
         of Counsel in which such details are given, or (b) stating that, in the
         opinion of such counsel, no such action shall be necessary to preserve
         and protect such interest; and

                  (ii) on or before March 31 of each year, commencing with March
         31, 2004, an Opinion of Counsel, dated as of such date, either (a)
         stating that, in the opinion of such counsel, all financing statements
         and continuation statements have been executed and filed that are
         necessary fully to preserve and protect the interest of the Issuer and
         the Indenture Trustee in the Receivables, and reciting the details of
         such filings or referring to prior opinions of Counsel in which such
         details are given, or (b) stating that, in the opinion of such counsel,
         no such action shall be necessary to preserve and protect such
         interest. Notwithstanding the provisions of Section 10.4, such Opinion
         of Counsel may be sent by regular non-certified mail, and such mailed
         opinion shall be deemed delivered when so mailed.

<PAGE>
                                                                              56

         (j) The Seller shall, to the extent required by applicable law, cause
the Certificates and the Notes to be registered with the Securities and Exchange
Commission pursuant to Section 12(b) or Section 12(g) of the Exchange Act within
the time periods specified in such sections.

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

         SECTION 10.3 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND
INTERPRETED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

         SECTION 10.4 Notices. All demands, notices, and communications under
this Agreement shall be in writing, personally delivered or mailed by certified
mail, return receipt requested, and shall be deemed to have been duly given upon
receipt (a) in the case of the Seller, c/o Chase Automotive Finance Corporation,
900 Stewart Avenue, Garden City, New York 11530 Attention: Financial Controller,
or at such other address as shall be designated by the Seller in a written
notice to the Indenture Trustee, (b) in the case of the Servicer, c/o Chase
Manhattan Automotive Finance Corporation, 900 Stewart Avenue, Garden City, New
York 11530, Attention: Financial Controller, or at such other address as shall
be designated by the Servicer in a written notice to the Indenture Trustee, (c)
in the case of the Indenture Trustee, at Wells Fargo Bank Minnesota, National
Association, Sixth Street and Marquette Avenue MAC N9311-161, Minneapolis,
Minnesota 55479-0069, Attention: Corporate Trust Office and (d) in the case of
the Issuer and the Owner Trustee, at c/o Wilmington Trust Company, Rodney Square
North, 1100 North Market Street, Wilmington, Delaware 19890, Attention:
Corporate Trust Administration. Any notice required or permitted to be mailed to
a Holder shall be given by first class mail, postage prepaid, at the address of
record of such Holder. Any notice to a Holder so mailed within the time
prescribed in this Agreement shall be conclusively presumed to have been duly
given, whether or not the Holder shall receive such notice.

         SECTION 10.5 Severability of Provisions. If any one or more of the
covenants, agreements, provisions, or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions, or
terms shall be deemed severable from the remaining covenants, agreements,
provisions, or terms of this Agreement and shall in no way affect the validity
or enforceability of the other provisions of this Agreement or of the
Certificates or of the Notes or the rights of the Holders thereof.

         SECTION 10.6 Assignment. Notwithstanding anything to the contrary
contained herein, except as provided in Sections 6.3, 7.3, 7.5 and 8.2, neither
the Seller nor the Servicer may assign all, or a portion of, its rights,
obligations and duties under this Agreement unless such transfer or assignment
satisfies the Rating Agency Condition. In the event of a transfer or assignment
pursuant to this Section 10.6, the Rating Agencies shall be provided with notice
of such transfer or assignment.

<PAGE>
                                                                              57

         SECTION 10.7 Certificates and Notes Nonassessable and Fully Paid. The
interests represented by the Certificates and Notes shall be nonassessable for
any losses or expenses of the Issuer or for any reason whatsoever, and, upon
authentication thereof by the Indenture Trustee and the Owner Trustee pursuant
to the Trust Agreement and the Indenture, respectively, each Certificate and
Note shall be deemed fully paid.

         SECTION 10.8 Third-Party Beneficiaries. This Agreement will inure to
the benefit of and be binding upon the parties hereto, and their respective
successors and permitted assigns. The Administrator, the Owner Trustee,
individually and on behalf of the Certificateholders and the Class R
Certificateholder, and the Indenture Trustee, individually and on behalf of the
Noteholders are third-party beneficiaries to this Agreement and are entitled to
the rights and benefits hereunder and may enforce the provisions hereof as it
were a party hereto. Except as otherwise provided in this Agreement, no other
person will have any right or obligation hereunder.

         SECTION 10.9 Assignment to Indenture Trustee. The Seller hereby
acknowledges and consents to any mortgage, pledge, assignment and grant of a
security interest by the Issuer to the Indenture Trustee pursuant to the
Indenture for the benefit of the Noteholders of all right, title and interest of
the Issuer in, to and under the Receivables and the other property constituting
the Owner Trust Estate and/or the assignment of any or all of the Issuer's
rights and obligations hereunder to the Indenture Trustee and agrees that the
enforcement of a right or remedy hereunder by the Indenture Trustee shall have
the same force and effect as if such right or remedy had been enforced or
executed by the Issuer.

         SECTION 10.10 Limitation of Liability of Owner Trustee and Indenture
Trustee. (a) Notwithstanding anything contained herein to the contrary, this
Agreement has been countersigned by Wilmington Trust Company not in its
individual capacity but solely in its capacity as Owner Trustee of the Issuer,
and in no event shall Wilmington Trust Company in its individual capacity or,
except as expressly provided in the Trust Agreement, as Owner Trustee of the
Issuer have any liability for the representations, warranties, covenants,
agreements or other obligations of the Issuer hereunder or in any of the
certificates, notices or agreements delivered pursuant hereto, as to all of
which recourse shall be had solely to the assets of the Issuer. For all purposes
of this Agreement, in the performance of its duties or obligations hereunder or
in the performance of any duties or obligations of the Issuer hereunder, the
Owner Trustee shall be subject to, and entitled to the benefits of, the terms
and provisions of Articles VI, VII and VIII of the Trust Agreement.

         (b) Notwithstanding anything contained herein to the contrary, this
Agreement has been acknowledged and accepted by Wells Fargo not in its
individual capacity but solely as Indenture Trustee, and in no event shall Wells
Fargo have any liability for the representations, warranties, covenants,
agreements or other obligations of the Issuer hereunder or in any of the
certificates, notices or agreements delivered pursuant hereto, as to all of
which recourse shall be had solely to the assets of the Issuer.

         SECTION 10.11 No Petition. The Seller and Servicer, by entering into
this Agreement hereby covenant and agree that they will not at any time
institute against the Issuer or join in any institution against the Issuer of,
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings, or other proceedings under any United States Federal or state
bankruptcy or similar law in connection with any obligations relating to this
Agreement or any of the other Basic Documents.

<PAGE>
                                                                              58

         SECTION 10.12 Disclosure. Notwithstanding anything herein to the
contrary, Chase USA and the Issuer (and any employee, representative or other
agent of both Chase USA and the Issuer) may disclose to any and all persons,
without limitation of any kind, the U.S. federal income tax treatment and tax
structure of the transactions contemplated by this Agreement and all materials
of any kind (including opinions or other tax analyses) that are provided to it
relating to such tax treatment and tax structure. However, any such information
relating to the U.S. federal income tax treatment or tax structure is required
to be kept confidential to the extent necessary to comply with any applicable
federal or state securities laws.

<PAGE>

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

                         CHASE MANHATTAN BANK USA,
                           NATIONAL ASSOCIATION, as Seller
                           and Servicer

                         By:     /s/ Patricia Garvey
                            ----------------------------------------------
                              Name:  Patricia Garvey
                              Title: Vice President

                         CHASE MANHATTAN AUTO OWNER TRUST
                           2003-A, as Issuer

                         By: WILMINGTON TRUST COMPANY,
                              not in its individual capacity but solely
                              as Owner Trustee on behalf of the Issuer

                         By:     /s/ Janel Havrilla
                            ----------------------------------------------
                              Name:  Janel R. Havrilla
                              Title: Financial Services Officer

Acknowledged and Accepted:

WELLS FARGO BANK MINNESOTA,
 NATIONAL ASSOCIATION,
 not in its individual capacity,
 but solely in its capacity
 as Indenture Trustee

By:     /s/ Marianna C. Sterschic
   -------------------------------------------
     Name:  Marianna C. Sterschic
     Title: Vice President

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