Document:

exv4w1

 

EXHIBIT 4.1

FORM OF

INDENTURE

between

HYUNDAI AUTO RECEIVABLES TRUST 200[__],

as Issuer

and

[________________________________],

as Indenture Trustee

Dated as of [__________], 200[__]

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I. DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	2	 
	Section 1.01. Definition
	 	 	2	 
	Section 1.02. Rules of Construction
	 	 	11	 
	Section 1.03. Incorporation by Reference of Trust Indenture Act
	 	 	11	 
	 
	ARTICLE II. THE NOTES
	 	 	12	 
	Section 2.01. Form
	 	 	12	 
	Section 2.02. Execution, Authentication and Delivery
	 	 	12	 
	Section 2.03. Temporary Notes
	 	 	13	 
	Section 2.04. Registration; Registration of Transfer and Exchange
	 	 	13	 
	Section 2.05. [Reserved]
	 	 	15	 
	Section 2.06. Mutilated, Destroyed, Lost or Stolen Notes
	 	 	15	 
	Section 2.07. Persons Deemed Owners
	 	 	16	 
	Section 2.08. Payment of Principal and Interest; Defaulted Interest
	 	 	16	 
	Section 2.09. Cancellation
	 	 	17	 
	Section 2.10. Book-Entry Notes
	 	 	17	 
	Section 2.11. Notices to Clearing Agency
	 	 	18	 
	Section 2.12. Definitive Notes
	 	 	18	 
	Section 2.13. Tax Treatment
	 	 	18	 
	 
	ARTICLE III. COVENANTS
	 	 	18	 
	Section 3.01. Payment of Principal and Interest
	 	 	18	 
	Section 3.02. Maintenance of Office or Agency
	 	 	19	 
	Section 3.03. Money for Payments To Be Held in Trust
	 	 	19	 
	Section 3.04. Existence
	 	 	21	 
	Section 3.05. Protection of Trust Estate
	 	 	21	 
	Section 3.06. Opinions as to Trust Estate
	 	 	21	 
	Section 3.07. Performance of Obligations; Servicing of Receivables
	 	 	22	 
	Section 3.08. Negative Covenants
	 	 	23	 
	Section 3.09. Annual Statement as to Compliance
	 	 	23	 
	Section 3.10. Issuer May Consolidate, etc., Only on Certain Terms
	 	 	24	 
	Section 3.11. Successor or Transferee
	 	 	25	 
	Section 3.12. No Other Business
	 	 	26	 
	Section 3.13. No Borrowing
	 	 	26	 
	Section 3.14. Servicer’s Obligations
	 	 	26	 
	Section 3.15. Guarantees, Loans, Advances and Other Liabilities
	 	 	26	 
	Section 3.16. Capital Expenditures
	 	 	26	 
	Section 3.17. Removal of Administrator
	 	 	26	 
	Section 3.18. Restricted Payments
	 	 	26	 
	Section 3.19. Notice of Events of Default
	 	 	27	 
	Section 3.20. Further Instruments and Acts
	 	 	27	 
	 
	ARTICLE IV. SATISFACTION AND DISCHARGE
	 	 	27	 
	Section 4.01. Satisfaction and Discharge of Indenture
	 	 	27	 

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	 	 	Page	 
	Section 4.02. Application of Trust Money
	 	 	28	 
	Section 4.03. Repayment of Moneys Held by Paying Agent
	 	 	28	 
	Section 4.04. Release of Collateral
	 	 	28	 
	 
	ARTICLE V. REMEDIES
	 	 	29	 
	Section 5.01. Events of Default
	 	 	29	 
	Section 5.02. Acceleration of Maturity; Rescission and Annulment
	 	 	30	 
	Section 5.03.
Collection of Indebtedness and Suits for Enforcement by Indenture Trustee
	 	 	31	 
	Section 5.04. Remedies; Priorities
	 	 	33	 
	Section 5.05. Optional Preservation of the Receivables
	 	 	36	 
	Section 5.06. Limitation of Suits
	 	 	36	 
	Section 5.07. Unconditional Rights of Noteholders To Receive Principal and Interest
	 	 	37	 
	Section 5.08. Restoration of Rights and Remedies
	 	 	37	 
	Section 5.09. Rights and Remedies Cumulative
	 	 	37	 
	Section 5.10. Delay or Omission Not a Waiver
	 	 	37	 
	Section 5.11. Control by the Controlling Class of Noteholders
	 	 	37	 
	Section 5.12. Waiver of Past Defaults
	 	 	38	 
	Section 5.13. Undertaking for Costs
	 	 	38	 
	Section 5.14. Waiver of Stay or Extension Laws
	 	 	39	 
	Section 5.15. Action on Notes
	 	 	39	 
	Section 5.16. Performance and Enforcement of Certain Obligations
	 	 	39	 
	 
	ARTICLE VI. THE INDENTURE TRUSTEE
	 	 	40	 
	Section 6.01. Duties of Indenture Trustee
	 	 	40	 
	Section 6.02. Rights of Indenture Trustee
	 	 	41	 
	Section 6.03. Individual Rights of Indenture Trustee
	 	 	42	 
	Section 6.04. Indenture Trustee’s Disclaimer
	 	 	43	 
	Section 6.05. Notice of Defaults
	 	 	43	 
	Section 6.06. Reports by Indenture Trustee to Holders
	 	 	43	 
	Section 6.07. Compensation and Indemnity
	 	 	43	 
	Section 6.08. Replacement of Indenture Trustee
	 	 	44	 
	Section 6.09. Successor Indenture Trustee by Merger
	 	 	45	 
	Section 6.10.
Appointment of Co-Indenture Trustee or Separate Indenture Trustee
	 	 	45	 
	Section 6.11. Eligibility; Disqualification
	 	 	46	 
	Section 6.12. [Reserved]
	 	 	46	 
	Section 6.13. Preferential Collection of Claims Against Issuer
	 	 	46	 
	Section 6.14. Waiver of Setoffs
	 	 	46	 
	 
	ARTICLE VII. NOTEHOLDERS’ LISTS AND REPORTS
	 	 	46	 
	Section 7.01. Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders
	 	 	47	 
	Section 7.02. Preservation of Information; Communications to Noteholders
	 	 	47	 
	Section 7.03. Reports by Issuer
	 	 	47	 
	Section 7.04. Reports by Indenture Trustee
	 	 	48	 

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	 	 	Page	 
	ARTICLE VIII. ACCOUNTS, DISBURSEMENTS AND RELEASES
	 	 	48	 
	Section 8.01. Collection of Money
	 	 	48	 
	Section 8.02. Trust Accounts
	 	 	48	 
	Section 8.03. General Provisions Regarding Accounts
	 	 	51	 
	Section 8.04. Release of Trust Estate
	 	 	51	 
	Section 8.05. Opinion of Counsel
	 	 	52	 
	 
	ARTICLE IX. SUPPLEMENTAL INDENTURES
	 	 	52	 
	Section 9.01. Supplemental Indentures Without Consent of Noteholders
	 	 	52	 
	Section 9.02. Supplemental Indentures with Consent of Noteholders
	 	 	53	 
	Section 9.03. Execution of Supplemental Indentures
	 	 	55	 
	Section 9.04. Effect of Supplemental Indenture
	 	 	55	 
	Section 9.05. Reference in Notes to Supplemental Indentures
	 	 	55	 
	Section 9.06. Conformity with Trust Indenture Act
	 	 	55	 
	 
	ARTICLE X. REDEMPTION OF NOTES
	 	 	55	 
	Section 10.01. Redemption
	 	 	55	 
	Section 10.02. Form of Redemption Notice
	 	 	56	 
	Section 10.03. Notes Payable on Redemption Date
	 	 	56	 
	 
	ARTICLE XI. MISCELLANEOUS
	 	 	56	 
	Section 11.01. Compliance Certificates and Opinions, etc.
	 	 	56	 
	Section 11.02. Form of Documents Delivered to Indenture Trustee
	 	 	58	 
	Section 11.03. Acts of Noteholders
	 	 	59	 
	Section 11.04. Notices, etc., to Indenture Trustee, Issuer and Rating
Agencies
	 	 	59	 
	Section 11.05. Notices to Noteholders; Waiver
	 	 	60	 
	Section 11.06. Alternate Payment and Notice Provisions
	 	 	61	 
	Section 11.07. Effect of Headings and Table of Contents
	 	 	61	 
	Section 11.08. Successors and Assigns
	 	 	61	 
	Section 11.09. Separability
	 	 	61	 
	Section 11.10. Benefits of Indenture
	 	 	61	 
	Section 11.11. Legal Holidays
	 	 	61	 
	Section 11.12. GOVERNING LAW
	 	 	61	 
	Section 11.13. Counterparts
	 	 	61	 
	Section 11.14. Recording of Indenture
	 	 	62	 
	Section 11.15. Trust Obligation
	 	 	62	 
	Section 11.16. No Petition
	 	 	62	 
	Section 11.17. Inspection
	 	 	62	 
	Section 11.18. Conflict with Trust Indenture Act
	 	 	62	 
	Section 11.19. Limitation of Liability
	 	 	63	 
	Section 11.20. Representations and Warranties
	 	 	63	 

EXHIBITS

	 	 	 	 	 
	SCHEDULE A

	 	Schedule of Receivables
	 	 
	EXHIBIT A-1

	 	Form of Class A-1 Note	 	 
	EXHIBIT A-2

	 	Form of Class A-2 Note	 	 
	EXHIBIT A-3

	 	Form of Class A-3 Note	 	 

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	EXHIBIT A-4

	 	Form of Class A-4 Note	 	 
	EXHIBIT B

	 	Form of Class B Note	 	 
	EXHIBIT C

	 	Form of Class C Note	 	 
	EXHIBIT D

	 	Form of Class D Note	 	 
	EXHIBIT E

	 	Form of the Note Depository Agreement	 	 

iv

 

     THIS INDENTURE, dated as of [___], 200[___], is between HYUNDAI AUTO RECEIVABLES TRUST
200[___], a Delaware statutory business trust (the “Issuer”), and [___], a [___]
banking association, as trustee and not in its individual capacity (the “Indenture Trustee”).

     Each party agrees as follows for the benefit of the other party and for the equal and ratable
benefit of the Holders of the Issuer’s [___]% Asset Backed Notes, Class A-1 (the “Class A-1
Notes”), [___]% Asset Backed Notes, Class A-2 (the “Class A-2 Notes”), [___]% Asset Backed Notes,
Class A-3 (the “Class A-3 Notes”), [___]% Asset Backed Notes, Class A-4 (the “Class A-4 Notes”),
[___]% Asset Backed Notes, Class B (the “Class B Notes”), [___]% Asset Backed Notes, Class C (the
“Class C Notes”) and [___]% Asset Backed Notes, Class D (the “Class D Notes” and, together with
the Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4 Notes, Class B Notes and Class C
Notes, the “Notes”):

GRANTING CLAUSE

     The Issuer hereby Grants to the Indenture Trustee at the Closing Date, as Indenture Trustee
for the benefit of the Holders of the Notes, all of the Issuer’s right, title and interest in and
to (a) the Receivables listed on Schedule A and all moneys received thereon on or after the close
of business on [___], 200[___] (b) the security interests in the Financed Vehicles and any
accessions thereto granted by Obligors pursuant to the Receivables and any other interest of the
Depositor in such Financed Vehicles; (c) any Liquidation Proceeds and any other proceeds with
respect to the Receivables from claims on any physical damage, credit life or disability insurance
policies covering Financed Vehicles or the related Obligors, including any vendor’s single interest
or other collateral protection insurance policy; (d) any property that shall have secured a
Receivable and that shall have been acquired by or on behalf of the Depositor, the Servicer, or the
Issuer; (e) all documents and other items contained in the Receivable Files; (f) all the
Depositor’s rights, but none of its obligations, under the Receivables Purchase Agreement; (g) all
right, title and interest in the Trust Accounts, all funds, securities or other assets credited
from time to time to the Trust Accounts and all investments therein and proceeds thereof (including
all investment earnings thereon); (h) any proceeds from any Receivable repurchased by a Dealer
pursuant to a Dealer Agreement; and (i) all present and future claims, demands, causes of action
and choses in action in respect of any or all of the foregoing and all payments on or under and all
proceeds of every kind and nature whatsoever in respect of any or all of the foregoing, including
all proceeds of the conversion thereof, voluntary or involuntary, into cash or other liquid
property, all cash proceeds, accounts, accounts receivable, notes, drafts, acceptances, chattel
paper, checks, deposit accounts, insurance proceeds, condemnation awards, rights to payment of any
and every kind and other forms of obligations and receivables, instruments and other property that
at any time constitute all or part of or are included in the proceeds of any of the foregoing
(collectively, the “Collateral”).

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

     The Indenture Trustee, on behalf of the Holders of the Notes, acknowledges such Grant, accepts
the trusts under this Indenture in accordance with the provisions of this Indenture

 

 

and agrees to perform its duties required in this Indenture to the best of its ability to the end
that the interests of the Holders of the Notes may be adequately and effectively protected.

ARTICLE I.

DEFINITIONS AND INCORPORATION BY REFERENCE

     Section 1.01. Definition. (a) Except as otherwise specified herein or as the context may
otherwise require, the following terms have the respective meanings set forth below for all
purposes of this Indenture.

     “Act” has the meaning specified in Section 11.03(a).

     “Administration Agreement” means the Owner Trust Administration Agreement, dated as of
[___], 200[___] among the Administrator, the Issuer and the Indenture Trustee.

     “Administrator” means HMFC, or any successor Administrator under 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 the purposes of this
definition, “control” when used with respect to any 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.

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

     “Book-Entry Notes” means a beneficial interest in the Notes, ownership and transfers of which
shall be made through book entries by a Clearing Agency as described in Section 2.10.

     “Business Day” shall have the meaning assigned thereto in the Sale and Servicing Agreement.

     “Certificate of Trust” means the certificate of trust of the Issuer substantially in the form
of Exhibit A to the Trust Agreement.

     “Class A Notes” means collectively the Class A-1 Notes, the Class A-2 Notes, the Class A-3
Notes and the Class A-4 Notes, as the context may require.

2

 

     “Class A Principal Distributable Amount” means, with respect to any Payment Date, an amount
equal to the greater of the Outstanding Amount of the Class A-1 Notes and the following:

     (a) the aggregate Outstanding Amount of the Class A Notes immediately
prior to such Payment Date; minus

     (b) the lesser of:

     (i) an amount equal to the product of:

     (A) the Adjusted Pool Balance as of the last day of the
related Collection Period; and

     (B) the sum of [___]% and the percentage equivalent of a
fraction equal to:

     (x) the amount on deposit in the Reserve Account after
giving effect to any withdrawals but prior to giving effect

to any deposits on that Payment Date; divided by

     (y) the Adjusted Pool Balance as of the last day of the
related Collection Period; and

     (ii) an amount equal to the Adjusted Pool Balance as of the last
day of the related Collection Period minus the Target

Overcollateralization Amount for the Payment Date;

provided, however, that on the Stated Maturity Date of any class of Class A Notes, the Class A
Principal Distributable Amount will be at least an amount sufficient to pay that class in full; and
provided further, that the Class A Principal Distributable Amount on any Payment Date will not
exceed the Outstanding Amount of the Class A Notes on that Payment Date.

     “Class A-1 Notes” means the [___]% Asset Backed Notes, Class A-1, substantially in the form
of Exhibit A-1.

     “Class A-1 Rate” means [___]% per annum, computed on the basis of the actual number of days
elapsed in the related Interest Accrual Period.

     “Class A-2 Notes” means the [___]% Asset Backed Notes, Class A-2, substantially in the form
of Exhibit A-2.

     “Class A-2 Rate” means [___]% per annum computed on the basis of a 360-day year consisting of
twelve 30-day months.

     “Class A-3 Notes” means the [___]% Asset Backed Notes, Class A-3, substantially in the form
of Exhibit A-3.

3

 

     “Class A-3 Rate” means [___]% per annum, computed on the basis of a 360-day year consisting
of twelve 30-day months.

     “Class A-4 Notes” means the [___]% Asset Backed Notes, Class A-4, substantially in the form
of Exhibit A-4.

     “Class A-4 Rate” means [___]% per annum, computed on the basis of a 360-day year consisting
of twelve 30-day months.

     “Class B Notes” means the [___]% Asset Backed Notes, Class B, substantially in the form of
Exhibit B.

     “Class B Principal Distributable Amount” means, with respect to any Payment Date, an amount
equal to:

     (a) the sum of the aggregate Outstanding Amount of the Class A Notes
(after taking into account the payment of the Class A Principal
Distributable Amount on such Payment Date) and the aggregate Outstanding
Amount of the Class B Notes immediately prior to such Payment Date; minus

     (b) the lesser of:

     (i) an amount equal to the product of:

     (A) the Adjusted Pool Balance as of the last day of the
related Collection Period; and

     (B) the sum of [___]% and the percentage equivalent of a
fraction equal to:

     (x) the amount on deposit in the Reserve Account after
giving effect to any withdrawals but prior to giving effect

to any deposits on that Payment Date; divided by

     (y) the Adjusted Pool Balance as of the last day of the
related Collection Period; and

     (ii) an amount equal to the Adjusted Pool Balance as of the last
day of the related Collection Period minus the Target

Overcollateralization Amount for the Payment Date;

provided, however, that on the Stated Maturity Date of any class of Class B Notes, the Class B
Principal Distributable Amount will be at least an amount sufficient to pay that class in full; and
provided further, that the Class B Principal Distributable Amount on any Payment Date will not
exceed the Outstanding Amount of the Class B Notes on that Payment Date.

     “Class B Rate” means [___]% per annum, computed on the basis of a 360-day year consisting of
twelve 30-day months.

4

 

     “Class C Notes” means the [___]% Asset Backed Notes, Class C, substantially in the form of
Exhibit C.

     “Class C Principal Distributable Amount” means, with respect to any Payment Date, an amount
equal to:

     (a) the sum of the aggregate Outstanding Amount of the Class A Notes
and the Class B Notes (after taking into account the payment of the Class A
Principal Distributable Amount and the Class B Principal Distributable
Amount on such Payment Date) and the aggregate Outstanding Amount of the
Class C Notes immediately prior to such Payment Date; minus

     (b) the lesser of:

     (i) an amount equal to the product of:

     (A) the Adjusted Pool Balance as of the last day of the
related Collection Period; and

     (B) the sum of [___]% and the percentage equivalent of a
fraction equal to:

     (x) the amount on deposit in the Reserve Account after
giving effect to any withdrawals but prior to giving effect

to any deposits on that Payment Date; divided by

     (y) the Adjusted Pool Balance as of the last day of the
related Collection Period; and

     (ii) an amount equal to the Adjusted Pool Balance as of the last
day of the related Collection Period minus the Target

Overcollateralization Amount for the Payment Date;

provided, however, that on the Stated Maturity Date of any class of Class C Notes, the Class C
Principal Distributable Amount will be at least an amount sufficient to pay that class in full; and
provided further, that the Class C Principal Distributable Amount on any Payment Date will not
exceed the Outstanding Amount of the Class C Notes on that Payment Date.

     “Class C Rate” means [___]% per annum, computed on the basis of a 360-day year consisting of
twelve 30-day months.

     “Class D Notes” means the [___]% Asset Backed Notes, Class D, substantially in the form of
Exhibit D.

     “Class D Principal Distributable Amount” means, with respect to any Payment Date, an amount
equal to:

     (a) the sum of the aggregate Outstanding Amount of the Class A Notes,
the Class B Notes and the Class C Notes (after taking into
account the payment of the Class

5

 

A Principal Distributable Amount, the Class B Principal Distributable
Amount and the Class C Principal Distributable Amount on such Payment Date)
and the Outstanding Amount of the Class D Notes immediately prior to such
Payment Date; minus

     (b) an amount equal to the Adjusted Pool Balance as of the last day of
the related Collection Period minus the Target Overcollateralization
Amount for the Payment Date;

provided, however, that on the Stated Maturity Date of the Class D Notes, the Class D Principal
Distributable Amount will be at least an amount sufficient to pay the Class D Notes in full; and
provided further, that the Class D Principal Distributable Amount on any Payment Date will not
exceed the Outstanding Amount of the Class D Notes on that Payment Date.

          “Class D Rate” means [ ___ ]% per annum, computed on the basis of a 360-day year consisting of
twelve 30-day months.

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

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

          “Closing Date” means[                      ], 200[ ___ ].

          “Code” means the Internal Revenue Code of 1986, as amended from time to time, and Treasury
Regulations promulgated thereunder.

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

          “Controlling Class” means with respect to any Notes that are Outstanding, the Class A Notes
(voting together as a single class) so long as any Class A Notes are Outstanding, then the Class B
Notes so long as any Class B Notes are Outstanding, then the Class C Notes so long as any Class C
Notes are Outstanding and thereafter the Class D Notes so long as any Class D Notes are
Outstanding.

          “Corporate Trust Office” means the principal office of the Indenture Trustee at which at any
particular time its corporate trust business is administered, which office at the date of execution
of this Agreement is located at [                                          ], [Address], Attention: Hyundai Auto Receivables
Trust 200[ ___ ], facsimile number [                      ]; or at such other address as the Indenture Trustee may
designate from time to time by notice to the Noteholders and the Issuer, or the principal corporate
trust office of any successor Indenture Trustee at the address designated by such successor
Indenture Trustee by notice to the Noteholders and the Issuer.

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

          “Definitive Notes” has the meaning specified in Section 2.10.

6

 

          “Depositor” means Hyundai ABS Funding Corporation, a Delaware corporation, its successors and
assigns.

          “Event
of Default” has the meaning specified in Section 5.01.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended.

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

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

          “HMFC” means Hyundai Motor Finance Company, a California corporation, and its successors.

          “Holder” or “Noteholder” means a Person in whose name a Note is registered on the Note
Register.

          “Indenture Trustee” means [                      ], a [                      ] banking association, not in its
individual capacity, but as Indenture Trustee under this Indenture, or any successor Indenture
Trustee under this Indenture.

          “Independent” means, when used with respect to any specified Person, that such Person (a) is
in fact independent of the Issuer, any other obligor on 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, the Servicer, the
Depositor 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.

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

7

 

          “Interest Rate” means the Class A-1 Rate, the Class A-2 Rate, the Class A-3 Rate, the Class
A-4 Rate, the Class B Rate, the Class C Rate or the Class D Rate, as the context may require.

          “Issuer” means Hyundai Auto Receivables Trust 200[ ___ ] until a successor replaces it and,
thereafter, means the successor and, for purposes of any provision contained herein and required by
the TIA, each other obligor on the Notes.

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

          “Note” means a Class A Note, a Class B Note, a Class C Note or a Class D Note as the context
may require.

          “Note Depository Agreement” means the agreement dated [                      ], 200[ ___ ] among the Issuer,
the Administrator, the Indenture Trustee and The Depository Trust Company, as the initial Clearing
Agency, relating to the Class A Notes, the Class B Notes, the Class C Notes and the Class D Notes,
substantially in the form of Exhibit E.

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

          “Note Register” and “Note Registrar” have the respective meanings specified in Section 2.04.

          “Officer’s Certificate” means a certificate signed by any Authorized Officer of the Issuer,
under the circumstances described in, and otherwise complying with, the applicable requirements of
Section 11.01, and delivered to the Indenture Trustee. Unless otherwise specified, any reference in
this Indenture to an Officer’s Certificate shall be to an Officer’s Certificate of any Authorized
Officer of the Issuer.

          “Opinion of Counsel” means one or more written opinions of counsel who may, except as
otherwise expressly provided in this Indenture, be an employee of or counsel to the Issuer and who
shall be satisfactory to the Indenture Trustee, and which opinion or opinions shall be addressed to
the Indenture Trustee, shall comply with any applicable requirements of Section 11.01 and shall be
in form and substance satisfactory to the Indenture Trustee.

          “Outstanding” means, as of any date of determination, all Notes theretofore authenticated and
delivered under this Indenture except:

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

     (ii) Notes or portions thereof the payment for which money in the
necessary amount has been theretofore deposited with the Indenture
Trustee or any Paying Agent in trust for the Holders of such Notes
(provided, however, that

8

 

if such Notes are to be redeemed, notice of such redemption has been
duly given pursuant to this Indenture or provision for such notice has
been made, satisfactory to the Indenture Trustee); and

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

provided, however, 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 on the Notes,
the Depositor, the Seller, the Servicer 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 a Responsible Officer of the Indenture Trustee knows to
be so owned shall be so disregarded. Notes so owned that have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the Indenture Trustee the
pledgee’s right so to act with respect to such Notes and that the pledgee is not the Issuer, any
other obligor on the Notes, the Depositor, the Seller, the Servicer or any Affiliate of any of the
foregoing Persons.

          “Outstanding Amount” means, as of any date of determination and as to any Notes, the aggregate
principal amount of such Notes Outstanding as of such date of determination.

          “Owner Trustee” means [                                          ], not in its individual capacity but solely as Owner
Trustee under the Trust Agreement, or any successor Owner Trustee under the Trust Agreement.

          “Paying Agent” means the Indenture Trustee or any other Person that meets the eligibility
standards for the Indenture Trustee specified in Section 6.11 and is authorized by the Issuer to
make payments to and distributions from the Collection Account, the Note Distribution Account and
the Reserve Account, including payments of principal of or interest on the Notes on behalf of the
Issuer.

          “Payment Date” means the [ ___ ] day of each month, or if any such date is not a Business Day,
the next succeeding Business Day, commencing [                      ], 200[ ___ ].

          “Person” means any individual, corporation, estate, partnership, limited liability company,
joint venture, association, joint stock company, trust or business trust (including any beneficiary
thereof), unincorporated organization or government or any agency or political subdivision thereof.

          “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 2.06 in lieu

9

 

of a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Note.

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

          “Record Date” means, with respect to a Payment Date or Redemption Date, the close of business
on the Business Day immediately preceding such Payment Date or Redemption Date; or, if Definitive
Notes have been issued, the last day of the calendar month preceding such Payment Date or
Redemption Date.

          “Redemption Date” means, as the context requires, in the case of a redemption of the Notes
pursuant to Section 10.01, the Payment Date specified by the Servicer or the Issuer pursuant to
Section 10.01.

          “Redemption Price” means in the case of a redemption of the Notes pursuant to Section 10.01,
an amount equal to the unpaid principal amount of the Notes redeemed plus accrued and unpaid
interest thereon at the Interest Rate for each Note being so redeemed to but excluding the
Redemption Date.

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

          “Responsible Officer” means, with respect to the Indenture Trustee or Owner Trustee, as
applicable, any officer within the Corporate Trust Office of the Indenture Trustee or the Owner
Trustee, including any Vice President, Assistant Vice President, Assistant Treasurer, Assistant
Secretary or any other officer of the Indenture Trustee or the Owner 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, in each case having direct responsibility
for the administration of the Basic Documents.

          “Sale and Servicing Agreement” means the Sale and Servicing Agreement, dated as of
[                      ], 200[ ___ ], among the Issuer, the Depositor, HMFC, as Seller and Servicer, and the
Indenture Trustee.

          “Schedule of Receivables” means the list of Receivables set forth in Schedule A (which
Schedule may be in the form of microfiche).

          “Securities Act” means the Securities Act of 1933, as amended.

          “Seller” means HMFC in its capacity as seller under the Receivables Purchase Agreement and the
Sale and Servicing Agreement, and its successor in interest.

          “Servicer” means HMFC, in its capacity as servicer under the Sale and Servicing Agreement, and
any Successor Servicer thereunder.

          “State” means any one of the 50 states of the United States of America, or the District of
Columbia.

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          “Successor Servicer” has the meaning specified in Section 3.07(f).

          “Trust Accounts” has the meaning set forth in the Sale and Servicing Agreement.

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

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

          “UCC” means, unless the context otherwise requires, the Uniform Commercial Code as in effect
in the relevant jurisdiction, as amended from time to time.

          (b) Except as otherwise specified herein or as the context may otherwise require, capitalized
terms used herein but not otherwise defined shall have the meanings ascribed thereto in the Sale
and Servicing Agreement.

          Section 1.02. Rules of Construction. Unless the context otherwise requires:

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

     (ii) an accounting term not otherwise defined has the meaning
assigned to it in accordance with generally accepted accounting

principles as in effect from time to time;

     (iii) “or” is not exclusive;

     (iv) “including” means including without limitation;

     (v) definitions are applicable to the singular and plural forms
of such terms and to the masculine, feminine and neuter genders of
such terms; and

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

          Section 1.03. Incorporation by Reference of Trust Indenture Act. Whenever this Indenture
refers to a provision of the TIA, such provision is incorporated by reference in and made a part of
this Indenture. The following TIA terms used in this Indenture have the following meanings:

          “Commission” means the Securities and Exchange Commission.

          “indenture securities” means the Notes.

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“indenture security holder” means a Noteholder.

“indenture to be qualified” means this Indenture.

“indenture trustee” or “institutional trustee” means the Indenture Trustee.

“obligor” on the indenture securities means the Issuer and any other obligor on the indenture
securities.

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

ARTICLE II.

THE NOTES

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

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

          Each Note shall be dated the date of its authentication. The terms of the Notes set forth in
Exhibit A-1, Exhibit A-2, Exhibit A-3, Exhibit A-4, Exhibit B, Exhibit C and Exhibit D are part of
the terms of this Indenture.

          Section 2.02. Execution, Authentication and Delivery. The Notes shall be executed on behalf of
the Issuer by any of its Authorized Officers. The signature of any such Authorized Officer on the
Notes may be manual or facsimile.

          Notes bearing the manual or facsimile signature of individuals who were at any time Authorized
Officers of the Issuer shall bind the Issuer, notwithstanding that such individuals or any of them
have ceased to hold such offices prior to the authentication and delivery of such Notes or did not
hold such offices at the date of such Notes.

          The Indenture Trustee shall upon Issuer Order authenticate and deliver Class A-1 Notes for
original issue in an aggregate principal amount of $[                      ], Class A-2 Notes for original issue
in an aggregate principal amount of $[                      ], Class A-3 Notes for original issue in an
aggregate principal amount of $[                      ], Class A-4 Notes for original issue in

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an aggregate principal amount of $[                      ], Class B Notes for original issue in an aggregate
principal amount of $[                      ], Class C Notes for original issue in an aggregate principal
amount of $[                      ], and Class D Notes for original issue in an aggregate principal amount
$[                      ]. The aggregate principal amount of Class A-1 Notes, Class A-2 Notes, Class A-3 Notes,
Class A-4 Notes, Class B Notes, Class C Notes and Class D Notes outstanding at any time may not
exceed such respective amounts except as provided in Section 2.06.

          The Notes shall be issuable as registered Notes in minimum denominations of $1,000 and in
integral multiples of $1,000 in excess thereof (except for one Note of each class which may be
issued in a denomination other than an integral multiple of $1,000).

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

          Section 2.03. Temporary Notes. Pending the preparation of Definitive Notes, the Issuer may
execute, and upon receipt of an Issuer Order the Indenture Trustee shall authenticate and deliver,
temporary Notes that are printed, lithographed, typewritten, mimeographed or otherwise produced, of
the tenor of the Definitive Notes in lieu of which they are issued and with such variations not
inconsistent with the terms of this Indenture as the officers executing such Notes may determine,
as evidenced by their execution of such Notes.

          If temporary Notes are issued, the Issuer shall cause Definitive Notes to be prepared without
unreasonable delay. After the preparation of Definitive Notes, the temporary Notes shall be
exchangeable for Definitive Notes upon surrender of the temporary Notes at the office or agency of
the Issuer to be maintained as provided in Section 3.02, without charge to the Holder. Upon
surrender for cancellation of any one or more temporary Notes, the Issuer shall execute, and the
Indenture Trustee shall authenticate and deliver in exchange therefor, a like principal amount of
Definitive Notes of authorized denominations. Until so exchanged, the temporary Notes shall in all
respects be entitled to the same benefits under this Indenture as Definitive Notes.

          Section 2.04. Registration; Registration of Transfer and Exchange. The Issuer shall cause to
be kept a register (the “Note Register”) in which, subject to such reasonable regulations as it may
prescribe, the Note Registrar shall provide for the registration of Notes and the registration of
transfers of Notes. The Indenture Trustee initially shall be the “Note Registrar” for the purpose
of registering Notes and transfers of Notes as herein provided. Upon any resignation of any Note
Registrar, the Issuer shall promptly appoint a successor or, if it elects not to make such an
appointment, assume the duties of Note Registrar. If a Person other than the Indenture Trustee is
appointed by the Issuer as Note Registrar, the Issuer will give the Indenture Trustee prompt
written notice of the appointment of such Note Registrar and of the location, and any change in the
location, of the Note Register, and the Indenture Trustee shall have the right to inspect the Note
Register at all reasonable times and to obtain copies thereof, and the Indenture Trustee shall have
the right to conclusively rely upon a certificate executed on behalf of the Note

13

 

Registrar by an Executive Officer thereof as to the names and addresses of the Holders of the Notes
and the principal amounts and number of such Notes.

          Upon surrender for registration of transfer of any Note at the office or agency of the Issuer
to be maintained as provided in Section 3.02, if the requirements of Section 8-401(a) of the UCC
are met, the Issuer shall execute, and the Indenture Trustee shall authenticate and the Noteholder
shall obtain from the Indenture Trustee, in the name of the designated transferee or transferees,
one or more new Notes of the same Class in any authorized denominations, of a like aggregate
principal amount.

          At the option of the Holder, Notes may be exchanged for other Notes of the same Class in any
authorized denominations, of a like aggregate principal amount, upon surrender of the Notes to be
exchanged at such office or agency. Whenever any Notes are so surrendered for exchange, if the
requirements of Section 8-401(a) of the UCC are met, the Issuer shall execute, and the Indenture
Trustee, without having to verify that the requirements of Section 8-401(a) have been met, shall
authenticate and the Noteholder shall obtain from the Indenture Trustee, the Notes that the
Noteholder making the exchange is entitled to receive.

          All Notes issued upon any registration of transfer or exchange of Notes shall be the valid
obligations of the Issuer, evidencing the same debt, and entitled to the same benefits under this
Indenture, as the Notes surrendered upon such registration of transfer or exchange. Every Note
presented or surrendered for registration of transfer or exchange shall be duly endorsed by, or be
accompanied by a written instrument of transfer in form satisfactory to the Indenture Trustee duly
executed by, the Holder thereof or such Holder’s attorney duly authorized in writing, with such
signature guaranteed by an “eligible guarantor institution” meeting the requirements of the Note
Registrar, which requirements include membership or participation in the Securities Transfer
Agent’s Medallion Program (“STAMP”) or such other “signature guarantee program” as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP, all in accordance
with the Exchange Act.

          No service charge shall be made to a Holder for any registration of transfer or exchange of
Notes, but the Issuer may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any registration of transfer or exchange
of Notes, other than exchanges pursuant to Section 2.03 or 9.05 not involving any transfer.

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

          No Note, or any interest therein, may be transferred to an “employee benefit plan” within the
meaning of Section 3(3) of ERISA that is subject to ERISA, a “plan” described in Section 4975(e)(1)
of the Code, any entity that is deemed to hold “plan assets” of any of the foregoing by reason of
an employee benefit plan’s or other plan’s investment in such entity, or any governmental, foreign
or church plan subject to applicable law that is substantially similar to the fiduciary
responsibility provisions of ERISA or Section 4975 of the Code, unless such transferee represents,
warrants and covenants that its purchase and holding of such note,

14

 

throughout the period that it holds such note, is and will be, covered by Department of Labor
prohibited transaction class exemption (“PTE”) 90-1; PTE 96-23; PTE 95-60; PTE 91-38; PTE 84-14 or
another applicable prohibited transaction exemption (or in the case of a governmental, foreign or
church plan, subject to law that is substantially similar to ERISA or Section 4975 of the Code, a
similar type of exemption or other applicable relief). By its acquisition of a Note in book-entry
form or any interest therein, each transferee will be deemed to have represented, warranted and
covenanted that it satisfies the foregoing requirements and the Indenture Trustee may rely
conclusively on the same for purposes hereof.

          The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the transfer of Notes.

          Section 2.05. [Reserved].

          Section 2.06. Mutilated, Destroyed, Lost or Stolen Notes. If (i) any mutilated Note is
surrendered to the Indenture Trustee, or the Indenture Trustee receives evidence to its
satisfaction of the destruction, loss or theft of any Note, and (ii) there is delivered to the
Indenture Trustee such security or indemnity as may be required by it to hold the Issuer and the
Indenture Trustee harmless, then, in the absence of notice to the Issuer, the Note Registrar or the
Indenture Trustee that such Note has been acquired by a protected purchaser, and provided that the
requirements of Section 8-405 of the UCC are met, the Issuer shall execute, and upon an Issuer
Order the Indenture Trustee shall authenticate and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Note, a replacement Note of the same Class; provided, however,
that if any such destroyed, lost or stolen Note, but not a mutilated Note, shall have become or
within 15 days shall be due and payable, or shall have been called for redemption, instead of
issuing a replacement Note, the Issuer may pay such destroyed, lost or stolen Note when so due or
payable or upon the Redemption Date without surrender thereof. If, after the delivery of such
replacement Note or payment of a destroyed, lost or stolen Note, a bona fide purchaser of the
original Note in lieu of which such replacement Note was issued presents for payment such original
Note, the Issuer and the Indenture Trustee shall be entitled to recover such replacement Note (or
such payment) from the Person to whom it was delivered or any Person taking such replacement Note
from such Person to whom such replacement Note was delivered or any assignee of such Person, except
a protected purchaser, and shall be entitled to recover upon the security or indemnity provided
therefor to the extent of any loss, damage, cost or expense incurred by the Issuer or the Indenture
Trustee in connection therewith.

          Upon the issuance of any replacement Note under this Section, the Issuer may require the
payment by the Holder of such Note of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other reasonable expenses (including the
fees and expenses of the Indenture Trustee) connected therewith.

          Every replacement Note issued pursuant to this Section in replacement of any mutilated,
destroyed, lost or stolen Note shall constitute an original additional contractual obligation of
the Issuer, whether or not the mutilated, destroyed, lost or stolen Note shall be at any time
enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.

15

 

          The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost
or stolen Notes.

          Section 2.07. Persons Deemed Owners. Prior to due presentment for registration of transfer of
any Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture Trustee
may treat the Person in whose name any Note is registered (as of the day of determination) as the
owner of such Note for the purpose of receiving payments of principal of and interest, if any, on
such Note and for all other purposes whatsoever, whether or not such Note be overdue, and none of
the Issuer, the Indenture Trustee or any agent of the Issuer or the Indenture Trustee shall be
affected by notice to the contrary.

          Section 2.08. Payment of Principal and Interest; Defaulted Interest.

          (a) The Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes, the
Class B Notes, the Class C Notes and the Class D Notes shall accrue interest at the Class A-1 Rate,
the Class A-2 Rate, the Class A-3 Rate, the Class A-4 Rate, the Class B Rate, the Class C Rate and
the Class D Rate, respectively, as set forth in Exhibit A-1, Exhibit A-2, Exhibit A-3, Exhibit A-4,
Exhibit B, Exhibit C and Exhibit D, respectively, and such interest shall be payable on each
Payment Date as specified therein, subject to Section 3.01. Any installment of interest or
principal payable on a Note that is punctually paid or duly provided for by the Issuer on the
applicable Payment Date shall be paid to the Person in whose name such Note (or one or more
Predecessor Notes) is registered on the Record Date by check mailed first-class postage prepaid to
such Person’s address as it appears on the Note Register on such Record Date, except that, unless
Definitive Notes have been issued pursuant to Section 2.12, with respect to Notes registered on the
Record Date in the name of the nominee of the Clearing Agency (initially, such nominee to be Cede &
Co.), payment shall be made by wire transfer in immediately available funds to the account
designated by such nominee; provided, however, that the final installment of principal payable with
respect to such Note on a Payment Date or on the related Stated Maturity Date (including the
Redemption Price for any Note called for redemption pursuant to Section 10.01) shall be payable as
provided in paragraph (b) below. The funds represented by any such checks returned undelivered
shall be held in accordance with Section 3.03.

          (b) The principal of each Note shall be payable in installments on each Payment Date as
provided in Section 3.01 hereof and the forms of the Notes set forth in Exhibit A-1, Exhibit A-2,
Exhibit A-3, Exhibit A-4, Exhibit B, Exhibit C and Exhibit D. Notwithstanding the foregoing, the
entire unpaid principal amount of the Notes may be declared immediately due and payable, if not
previously paid, in the manner provided in Section 5.02 on any date on which an Event of Default
shall have occurred and be continuing, by the Indenture Trustee or the Indenture Trustee acting at
the direction of the Holders of Notes representing not less than a majority of the Outstanding
Amount of the Controlling Class. All principal payments on each Class of Notes shall be made pro
rata to the Noteholders of the related Class entitled thereto. Upon written notice thereof, the
Indenture Trustee shall notify the Person in whose name a Note is registered at the close of
business on the Record Date preceding the Payment Date on which the Issuer expects the final
installment of principal of and interest on such Note to be paid. Such notice shall specify that
such final installment will be payable only upon presentation and surrender of such Note and shall
specify the place where such Note may be

16

 

presented and surrendered for payment of such installment. Notices in connection with redemptions
of Notes shall be mailed to Noteholders as provided in Section 10.02.

          (c) If the Issuer defaults in a payment of interest on the Notes, the Issuer shall pay
defaulted interest (plus interest on such defaulted interest to the extent lawful) at the
applicable Interest Rate in any lawful manner on the next Payment Date.

          Section 2.09. Cancellation. All Notes surrendered for payment, registration of transfer,
exchange or redemption shall, if surrendered to any Person other than the Indenture Trustee, be
delivered to the Indenture Trustee and shall be promptly cancelled by the Indenture Trustee. The
Issuer may at any time deliver to the Indenture Trustee for cancellation any Notes previously
authenticated and delivered hereunder that the Issuer may have acquired in any manner whatsoever,
and all Notes so delivered shall be promptly cancelled by the Indenture Trustee. No Notes shall be
authenticated in lieu of or in exchange for any Notes cancelled as provided in this Section, except
as expressly permitted by this Indenture. All cancelled Notes may be held or disposed of by the
Indenture Trustee in accordance with its standard retention or disposal policy as in effect at the
time unless the Issuer shall direct by an Issuer Order that they be destroyed or returned to it;
provided, that such Issuer Order is timely and the Notes have not been previously disposed of by
the Indenture Trustee.

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

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

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

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

Section shall control;

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

17

 

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

          Section 2.11. Notices to Clearing Agency. Whenever a notice or other communication to the
Noteholders is required under this Indenture, unless and until Definitive Notes shall have been
issued to such Note Owners pursuant to Section 2.12, the Indenture Trustee shall give all such
notices and communications specified herein to be given to Holders of the Notes to the Clearing
Agency, and shall have no obligation to such Note Owners.

          Section 2.12. Definitive Notes. If (i) the Administrator advises the Indenture Trustee in
writing that the Clearing Agency is no longer willing or able to properly discharge its
responsibilities with respect to the Book-Entry Notes and the Administrator is unable to locate a
qualified successor or (ii) after the occurrence of an Event of Default or a Servicer Termination
Event, Owners of the Book-Entry Notes representing beneficial interests aggregating at least a
majority of the Outstanding Amount of such Notes advise the Clearing Agency in writing that the
continuation of a book-entry system through the Clearing Agency is no longer in the best interests
of such Note Owners, then the Clearing Agency shall notify all Note Owners, the Administrator and
the Indenture Trustee of the occurrence of any such event and of the availability of Definitive
Notes to Note Owners requesting the same. Upon surrender to the Indenture Trustee of the
typewritten Notes representing the Book-Entry Notes by the Clearing Agency, accompanied by
registration instructions, the Issuer shall execute and the Indenture Trustee upon an Issuer Order
shall authenticate the Definitive Notes in accordance with the written instructions of the Clearing
Agency. None of the Issuer, the Note Registrar, the Administrator or the Indenture Trustee shall be
liable for any delay in delivery of such instructions and may conclusively rely on, and shall be
protected in relying on, such instructions. Upon the issuance of Definitive Notes, the Indenture
Trustee shall recognize the Holders of the Definitive Notes as Noteholders.

          Section 2.13. Tax Treatment. The Issuer has entered into this Indenture, and the Notes will be
issued, with the intention that, for purposes of federal and state income tax, franchise tax and
any other tax measured in whole or in part by income, the Notes will be characterized as
indebtedness secured by the Trust Estate. The Issuer, by entering into this Indenture, and each
Noteholder, by its acceptance of a Note (and each Note Owner by its acceptance of an interest in
the applicable Book-Entry Note), agree to treat the Notes for such purposes as indebtedness.

ARTICLE III.

COVENANTS

          Section 3.01. Payment of Principal and Interest. The Issuer will duly and punctually pay the
principal of and interest, if any, on the Notes in accordance with the terms of

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the Notes and this Indenture. Without limiting the foregoing, subject to Section 8.02(c), on each
Payment Date, the Issuer will cause to be distributed all amounts deposited pursuant to the Sale
and Servicing Agreement into the Note Distribution Account (i) for the benefit of the Class A-1
Notes, to the Class A-1 Noteholders, (ii) for the benefit of the Class A-2 Notes, to the Class A-2
Noteholders, (iii) for the benefit of the Class A-3 Notes, to the Class A-3 Noteholders, (iv) for
the benefit of the Class A-4 Notes, to the Class A-4 Noteholders, (v) for the benefit of the Class
B Notes, to the Class B Noteholders, (vi) for the benefit of the Class C Notes, to the Class C
Noteholders and (vii) for the benefit of the Class D Notes to the Class D Noteholders. Amounts
properly withheld under the Code by any Person from a payment to any Noteholder of interest and/or
principal shall be considered as having been paid by the Issuer to such Noteholder for all purposes
of this Indenture.

          Section 3.02. Maintenance of Office or Agency. The Issuer will maintain in the Borough of
Manhattan, The City of New York, an office or agency where Notes may be surrendered for
registration of transfer or exchange, and where notices and demands to or upon the Issuer in
respect of the Notes and this Indenture may be served. Such office will initially be located at
[ ___ ], Attention: Hyundai Auto Receivables Trust 200[ ___ ], New York, New York [ ___ ]. The
Issuer will give prompt written notice to the Indenture Trustee of the location, and of any change
in the location, of any such office or agency. If at any time the Issuer shall fail to maintain any
such office or agency or shall fail to furnish the Indenture Trustee with the address thereof, such
surrenders, notices and demands may be made or served at the Corporate Trust Office, and the Issuer
hereby appoints the Indenture Trustee as its agent to receive all such surrenders, notices and
demands.

          Section 3.03. Money for Payments To Be Held in Trust. All payments of amounts due and payable
with respect to any Notes that are to be made from amounts withdrawn from the Collection Account,
the Note Distribution Account and the Reserve Account shall be made on behalf of the Issuer by the
Indenture Trustee or by another Paying Agent, and no amounts so withdrawn from the Collection
Account, the Note Distribution Account or the Reserve Account for payments of Notes shall be paid
over to the Issuer except as provided in this Section.

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

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

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

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

     (iii) at any time during the continuance of any such default,
upon the written request of the Indenture Trustee, forthwith pay to

the Indenture Trustee all sums so held in trust by such Paying Agent;

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

     (v) comply with all requirements of the Code with respect to the
withholding from any payments made by it on any Notes of any
applicable withholding taxes imposed thereon (including retaining any
Internal Revenue Service forms or certifications establishing
exemption therefrom as required by law) and with respect to any
applicable reporting requirements in connection with any payments made
by it on any Notes and any withholding of taxes therefrom.

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

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

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          Section 3.04. Existence. Except as otherwise permitted by the provisions of Section 3.10, the
Issuer will keep in full effect its existence, rights and franchises as a statutory trust under the
laws of the State of Delaware (unless it becomes, or any successor Issuer hereunder is or becomes,
organized under the laws of any other State or of the United States of America, in which case the
Issuer will keep in full effect its existence, rights and franchises under the laws of such other
jurisdiction) and will obtain and preserve its qualification to do business in each jurisdiction in
which such qualification is or shall be necessary to protect the validity and enforceability of
this Indenture, the Notes, the Collateral and each other instrument or agreement included in the
Trust Estate.

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

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

purposes hereof;

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

     (iii) enforce any of the Collateral; or

     (iv) preserve and defend title to the Trust Estate and the rights
of the Indenture Trustee and the Noteholders in such Trust Estate

against the claims of all persons and parties.

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

          Section 3.06. Opinions as to Trust Estate.

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

          (b) On or before April 30 in each calendar year, beginning in 200[ ___], the Issuer shall
furnish to the Indenture Trustee an Opinion of Counsel either stating that, in the opinion of such
counsel, such action has been taken with respect to the recording, filing, re-recording and
re-filing of this Indenture, any indentures supplemental hereto and any other requisite documents
and with respect to the execution and filing of any financing statements and continuation
statements as is necessary to maintain the lien and security interest created by this Indenture and
reciting the details of such action, or stating that in the opinion of such counsel no

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such action is necessary to maintain such lien and security interest. Such Opinion of Counsel shall
also describe the recording, filing, re-recording and refiling of this Indenture, any indentures
supplemental hereto and any other requisite documents and the execution and filing of any financing
statements and continuation statements that will, in the opinion of such counsel, be required to
maintain the lien and security interest of this Indenture until April 30 in the following calendar
year.

          Section 3.07. Performance of Obligations; Servicing of Receivables. (a) (a) The Issuer will
not take any action and will use its reasonable best efforts not to permit any action to be taken
by others that would release any Person from any of such Person’s material covenants or obligations
under any instrument or agreement included in the Trust Estate or that would result in the
amendment, hypothecation, subordination, termination or discharge of, or impair the validity or
effectiveness of, any such instrument or agreement, except as expressly provided in this Indenture,
the Sale and Servicing Agreement or such other instrument or agreement.

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

          (c) The Issuer will punctually perform and observe all of its obligations and agreements
contained in this Indenture, the Basic Documents and in the instruments and agreements included in
the Trust Estate, including but not limited to filing or causing to be filed all UCC financing
statements and continuation statements required to be filed by the terms of this Indenture and the
Sale and Servicing Agreement in accordance with and within the time periods provided for herein and
therein. Except as otherwise expressly provided therein, the Issuer shall not waive, amend, modify,
supplement or terminate any Basic Document or any provision thereof without the consent of either
the Indenture Trustee or the Holders of at least a majority of the Outstanding Amount of the Notes.

          (d) If the Issuer shall have knowledge of the occurrence of a Servicer Termination Event under
the Sale and Servicing Agreement, the Issuer shall promptly notify the Indenture Trustee and the
Rating Agencies thereof, and shall specify in such notice the action, if any, the Issuer is taking
with respect to such default.

          (e) [Reserved]

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

          (g) Without limitation of the absolute nature of the assignment granted to the Indenture
Trustee under this Indenture or the rights of the Indenture Trustee hereunder, the Issuer agrees
(i) except to the extent otherwise provided in any Basic Documents, that it will not, without the
prior written consent of either the Indenture Trustee acting at the direction of the

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Holders of at least a majority in Outstanding Amount of the Notes, amend, modify, waive,
supplement, terminate or surrender, or agree to any amendment, modification, supplement,
termination, waiver or surrender of, the terms of any Collateral (except to the extent otherwise
provided in the Sale and Servicing Agreement) or the Basic Documents, or waive timely performance
or observance by the Servicer or the Seller under the Sale and Servicing Agreement; and (ii) that
any such amendment shall not (A) increase or reduce in any manner the amount of, or accelerate or
delay the timing of, distributions that are required to be made for the benefit of the Noteholders
or (B) reduce the aforesaid percentage of the Notes that is required to consent to any such
amendment, without the consent of the Holders of all Outstanding Notes. If the Indenture Trustee
acting at the direction of such Holders agrees to any such amendment, modification, supplement or
waiver, the Indenture Trustee agrees, promptly following a request by the Issuer to do so, to
execute and deliver, at the Issuer’s own expense, such agreements, instruments, consents and other
documents as the Issuer may deem necessary or appropriate in the circumstances.

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

     (i) except to the extent as expressly permitted by this Indenture
or the Sale and Servicing Agreement, sell, transfer, exchange or
otherwise dispose of any of the properties or assets of the Issuer,
including those included in the Trust Estate, unless directed to do so
by the Indenture Trustee acting on direction of at least a majority in
Outstanding Amount of the Controlling Class given pursuant to this
Agreement;

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

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

          Section 3.09. Annual Statement as to Compliance. The Issuer will deliver to the Indenture
Trustee and the Rating Agencies, within 120 days after the end of each fiscal year of

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the Issuer (commencing with the fiscal year 200[ ___]), an Officer’s Certificate stating, as to the
Authorized Officer signing such Officer’s Certificate, that:

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

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

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

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

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

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

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

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

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

taken; and

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

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        (b) The Issuer shall not convey or transfer any of its properties
or assets, including those included in the Trust Estate, to any Person,

unless:

     (i) the Person that acquires by conveyance or transfer the
properties and assets of the Issuer the conveyance or transfer of
which is hereby restricted (A) shall be a United States citizen
or a Person organized and existing under the laws of the United
States of America or any State, (B) expressly assumes, by an
indenture supplemental hereto, executed and delivered to the
Indenture Trustee, in form satisfactory to the Indenture Trustee,
the due and punctual payment of the principal of and interest on
all Notes and the performance or observance of every agreement
and covenant of this Indenture on the part of the Issuer to be
performed or observed, all as provided herein, (C) expressly
agrees by means of such supplemental indenture that all right,
title and interest so conveyed or transferred shall be subject
and subordinate to the rights of Holders of the Notes, (D) unless
otherwise provided in such supplemental indenture, expressly
agrees to indemnify, defend and hold harmless the Issuer and the
Indenture Trustee against and from any loss, liability or expense
arising under or related to this Indenture and the Notes and (E)
expressly agrees by means of such supplemental indenture that
such Person (or, if a group of Persons, one specified Person)
shall make all filings with the Commission (and any other
appropriate Person) required by the Exchange Act in connection
with the Notes;

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

continuing;

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

     (iv) the Issuer shall have received an Opinion of Counsel
which may not be in-house counsel (and shall have delivered
copies thereof to the Indenture Trustee) to the effect that such
transaction will not have any material adverse federal income tax
consequences to the Issuer, any Noteholder or any
Certificateholder;

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

taken; and

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

          Section 3.11. Successor or Transferee. (a) Upon any consolidation or merger of the Issuer in
accordance with Section 3.10(a), the Person formed by or surviving such

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consolidation or merger (if other than the Issuer) shall succeed to, and be substituted for,
and may exercise every right and power of, the Issuer under this Indenture with the same effect as
if such Person had been named as the Issuer herein.

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

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

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

     Section 3.14. Servicer’s Obligations. The Issuer shall cause the Servicer to comply with
Sections 4.09, 4.10, 4.11 and Article VII of the Sale and Servicing Agreement.

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

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

     Section 3.17. Removal of Administrator. So long as any Notes are Outstanding, the Issuer shall
not remove the Administrator unless the Rating Agency Condition shall have been satisfied in
connection with such removal and the Indenture Trustee receives written notice of the foregoing and
consents thereto.

     Section 3.18. Restricted Payments. Except with respect to the proceeds from issuance of the
Notes, the Issuer shall not, directly or indirectly, (i) pay any dividend or make any distribution
(by reduction of capital or otherwise), whether in cash, property, securities or a combination
thereof, to the Owner Trustee or any owner of a beneficial interest in the Issuer or otherwise with
respect to any ownership or equity interest or security in or of the Issuer or to the Servicer,
(ii) redeem, purchase, retire or otherwise acquire for value any such ownership or equity interest
or security or (iii) set aside or otherwise segregate any amounts for any such purpose; provided,
however, that the Issuer may make, or cause to be made, distributions as contemplated by, and to
the extent funds are available for such purpose under, the Sale and Servicing Agreement, this
Indenture or the Trust Agreement. The Issuer will not, directly or indirectly, make payments to or
distributions from the Note Distribution Account, the Collection

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     Account, or the Reserve Account except in accordance with this Indenture and the Basic Documents.

     Section 3.19. Notice of Events of Default. The Issuer shall give the Indenture Trustee and the
Rating Agencies prompt written notice of each Event of Default hereunder, and of each default on
the part of the Servicer or the Seller of its obligations under the Sale and Servicing Agreement.

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

ARTICLE IV.

SATISFACTION AND DISCHARGE

     Section 4.01. Satisfaction and Discharge of Indenture. This Indenture shall cease to be of
further effect with respect to the Notes except as to (i) rights of registration of transfer and
exchange, (ii) substitution of mutilated, destroyed, lost or stolen Notes, (iii) rights of
Noteholders to receive payments of principal thereof and interest thereon, (iv) Sections 3.03,
3.04, 3.05, 3.08, 3.10, 3.11, 3.12, 3.13, 3.15, 3.16 and 3.18, (v) the rights, obligations and
immunities of the Indenture Trustee hereunder (including the rights of the Indenture Trustee under
Section 6.07 and the obligations of the Indenture Trustee under Section 4.02) and (vi) the rights
of Noteholders as beneficiaries hereof with respect to the property so deposited with the Indenture
Trustee payable to all or any of them, and the Indenture Trustee, on demand of and at the expense
of the Issuer, shall execute proper instruments acknowledging satisfaction and discharge of this
Indenture with respect to the Notes, when

     (A) either:

     1. all Notes theretofore authenticated and delivered

     (other than (i) Notes that have been destroyed, lost or
stolen and that have been replaced or paid as provided in
Section 2.06 and (ii) Notes for the payment of which money
has theretofore been deposited in trust or segregated and
held in trust by the Issuer and thereafter repaid to the
Issuer or discharged from such trust, as provided in Section
3.03), have been delivered to the Indenture Trustee for
cancellation; or

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

     a. have become due and payable,

     b. will become due and payable at the Class D Maturity
Date within one year or

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

and the Issuer, in the case of a, b, or c above, has irrevocably deposited or caused to be
irrevocably deposited with the Indenture Trustee cash or direct obligations of or obligations
guaranteed by the United States of America (that will mature prior to the date such amounts are
payable), in trust for such purpose, in an amount sufficient to pay and discharge the entire
indebtedness on such Notes not theretofore delivered to the Indenture Trustee for cancellation when
due to the applicable Stated Maturity Date or Redemption Date (if Notes shall have been called for
redemption pursuant to Section 10.01), as the case may be;

     (B) the Issuer has paid or caused to be paid all other sums
payable hereunder by the Issuer including, but not limited to, fees,
reimbursements, indemnities and expenses due to the Indenture Trustee;
and

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

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

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

     Section 4.04. Release of Collateral. Subject to Section 11.01 and the terms of the Basic
Documents, the Indenture Trustee shall release property from the lien of this Indenture only upon
receipt by it of an Issuer Request accompanied by an Officer’s Certificate, an Opinion of Counsel
and Independent Certificates in accordance with TIA Sections 314(c) and 314(d)(1) or an Opinion of
Counsel in lieu of such Independent Certificates to the effect that the TIA does not require any
such Independent Certificates.

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ARTICLE V.

REMEDIES

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

     (i) default in the payment of any interest on any Note of the
Controlling Class when the same becomes due and payable, and such
default shall continue for a period of thirty-five (35) days;

     (ii) default in the payment of the principal of or any
installment of the principal of any Note on its related Stated
Maturity Date;

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

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

     (v) the commencement by the Issuer of a voluntary case under any
applicable federal or state bankruptcy, insolvency or other similar
law now or hereafter in effect, or the consent by the Issuer to the
entry of an order for relief in an involuntary case under any such
law, or the consent by the Issuer to the appointment of or taking of
possession by a receiver, liquidator, assignee,

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custodian, trustee, sequestrator or similar official of the Issuer or
for any substantial part of the Trust Estate, or the making by the
Issuer of any general assignment for the benefit of creditors, or the
failure by the Issuer generally to pay its debts as such debts become
due, or the taking of any action by the Issuer in furtherance of any
of the foregoing.

     The Issuer shall promptly deliver to the Indenture Trustee written notice in the form of an
Officer’s Certificate of any event that with the giving of notice and the lapse of time would
become an Event of Default under clause (iii), its status and what action the Issuer is taking or
proposes to take with respect thereto.

     Section 5.02. Acceleration of Maturity; Rescission and Annulment.

     (a) If an Event of Default shall occur and be continuing, then and in every such case the
Indenture Trustee may, or the Indenture Trustee if so directed in writing by the Holders of Notes
representing not less than a majority of the Outstanding Amount of the Controlling Class of Notes
shall, declare all the Notes to be then immediately due and payable, by a notice in writing to the
Issuer (and to the Indenture Trustee if given by Noteholders), and upon any such declaration the
Outstanding Amount of such Notes, together with accrued and unpaid interest thereon through the
date of acceleration, shall become immediately due and payable.

     (b) If an Event of Default under this Indenture shall have occurred, the Indenture Trustee in
its discretion may, or if so requested in writing by Holders of Notes representing at least a
majority of the Outstanding Amount of the Controlling Class of Notes, shall, declare by written
notice to the Issuer all of the Notes to be immediately due and payable, and upon any such
declaration, the Outstanding Amount of the Notes, together with accrued interest thereon through
the date of acceleration, shall become immediately due and payable as provided in the Notes set
forth in Exhibit A-1, Exhibit A-2, Exhibit A-3, Exhibit A-4, Exhibit B, Exhibit C and Exhibit D.
Notwithstanding anything to the contrary in this paragraph (b), if an Event of Default specified in
clauses (iv) or (v) of Section 5.01 shall have occurred and be continuing the Notes shall become
immediately due and payable at par, together with accrued interest thereon.

     (c) At any time after such declaration of acceleration of maturity has been made and before a
judgment or decree for payment of the money due has been obtained by the Indenture Trustee as
hereinafter in this Article V provided, the Holders of Notes representing a majority of the
Outstanding Amount of the Controlling Class of Notes, by written notice to the Issuer and the
Indenture Trustee, may rescind and annul such declaration and its consequences if:

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

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

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          (B) all sums paid by the Indenture Trustee hereunder and the
reasonable compensation, indemnity, reimbursement, expenses and
disbursements of the Indenture Trustee and its agents and counsel and
the reasonable compensation, expenses and disbursements of the Owner
Trustee and its agents and counsel; and

     (ii) all Events of Default, other than the nonpayment of the
principal of the Notes that has become due solely by such

acceleration, have been cured or waived as provided in Section 5.12.

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

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

     (a) The Issuer covenants that if (i) a default is made in the payment of any interest on any
Note when the same becomes due and payable, and such default continues for a period of thirty-five
(35) days or, (ii) default is made in the payment of the principal of or any installment of the
principal of any Note when the same becomes due and payable, the Issuer will, upon demand of the
Indenture Trustee, pay to it, for the benefit of the Holders of the Notes, the entire amount then
due and payable on such Notes in respect of principal and interest, with interest on the overdue
principal and, to the extent payment at such rate of interest shall be legally enforceable, on
overdue installments of interest at the related Interest Rate and, in addition thereto, such
further amount as shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses and disbursements of the Indenture Trustee and its agents and
counsel.

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

     (c) If an Event of Default occurs, the Indenture Trustee may, as more particularly provided in
Section 5.04, in its discretion, or shall, at the directions of the Holders of at least a majority
of the Outstanding Amount of the Controlling Class of Notes, proceed to protect and enforce its
rights and the rights of the Noteholders, by such appropriate Proceedings as the Indenture Trustee
or the Indenture Trustee at the direction of the Holders of at least a majority of the Outstanding
Amount of the Controlling Class of Notes shall reasonably deem most effective to protect and
enforce any such rights, whether for the specific enforcement of any covenant or agreement in this
Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper
remedy or legal or equitable right vested in the Indenture Trustee by this Indenture or by law.

     (d) In case there shall be pending, relative to the Issuer or any other obligor on the Notes
or any Person having or claiming an ownership interest in the Trust Estate, Proceedings under Title
11 of the United States Code or any other applicable federal or state

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

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

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

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

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

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

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

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

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

     Section 5.04. Remedies; Priorities.

     (a) If an Event of Default shall have occurred and be continuing, the Indenture Trustee may
and at the written direction of the outstanding Controlling Class of the Notes shall, do one or
more of the following (subject to Section 5.05):

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

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

Estate;

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

     (iv) sell the Trust Estate or any portion thereof or rights or
interest therein, at one or more public or private sales called and

conducted in any manner permitted by law;

provided that Indenture Trustee may not sell or otherwise liquidate the Trust Estate following an
Event of Default unless:

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

     (B) with respect to an Event of Default described in Section
5.01(iii):

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

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

Notes and outstanding Certificates.

          (C) with respect to any Event of Default described in
Section 5.01 (iv) and (v):

     (i) the Noteholders of Notes evidencing 100% of the principal
amount of the Controlling Class consent thereto; or

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

Outstanding Notes; or

          (iii) the Indenture Trustee

(x) determines (but shall have no obligation to make such
determination) that the Trust Estate will not continue to
provide sufficient funds for the payment of principal of and
interest on the Notes as they would have become due if the
Notes had not been declared due and payable; and
(y) the Indenture Trustee obtains the consent of Noteholders
of Notes evidencing not less than 66 2/3% of the principal
amount of the Controlling Class; or

     In determining such sufficiency or insufficiency with respect to clause (B)(ii) and (C)(ii) or
(C)(iii)(x), Indenture Trustee may, but need not, obtain at the Issuer’s expense, and rely upon an
opinion of an Independent investment banking or accounting firm of national reputation as to the
feasibility of such proposed action and as to the sufficiency of the Trust Estate for such purpose.

     (b) (i) Notwithstanding the provisions of Section 8.02, following the occurrence and during
the continuation of an Event of Default specified in Section 5.01(i), 5.01(ii), 5.01(iv) or 5.01(v)
which has resulted in an acceleration of the Notes (or following the occurrence of any such event
after an Event of Default specified in Section 5.01(iii) has occurred and the Trust Estate has been
liquidated), if the Indenture Trustee collects any money or property, it shall pay out such money
or property (and other amounts including amounts held on deposit in the Reserve Account) held as
Collateral for the benefit of the Noteholders, net of liquidation costs associated with the sale of
the Trust Estate, in the following order:

     FIRST: to the Indenture Trustee, any amounts due under Section 6.07 to the extent that such
amounts were not previously paid by the Servicer;

     SECOND: to the Servicer for due and unpaid Servicing Fees and Advances not previously
reimbursed;

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

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     FOURTH: to Holders of the Class A-1 Notes for amounts due and unpaid on the Class A-1 Notes in
respect of principal, ratably, without preference or priority of any kind, according to the amounts
due and payable on the Class A-1 Notes in respect of principal, until the Outstanding Amount of the
Class A-1 Notes is reduced to zero;

     FIFTH: to Holders of the Class A-2 Notes, Class A-3 Notes and Class A-4 Notes for amounts due
and unpaid on the Class A-2 Notes, Class A-3 Notes and Class A-4 Notes in respect of principal,
ratably, without preference or priority of any kind, according to the amounts due and payable on
the Class A-2 Notes, Class A-3 Notes and Class A-4 Notes in respect of principal, until the
Outstanding Amount of the Class A-2 Notes, Class A-3 Notes and Class A-4 Notes is reduced to zero;

     SIXTH: to Holders of the Class B Notes for amounts due and unpaid on the Class B Notes in
respect of interest, ratably, without preference or priority of any kind, according to the amounts
due and payable on the Class B Notes in respect of interest;

     SEVENTH: to Holders of the Class B Notes for amounts due and unpaid on the Class B Notes in
respect of principal, ratably, without preference or priority of any kind, according to the amounts
due and payable on the Class B Notes in respect of principal, until the Outstanding Amount of the
Class B Notes is reduced to zero;

     EIGHTH: to Holders of the Class C Notes for amounts due and unpaid on the Class C Notes in
respect of interest, ratably, without preference or priority of any kind, according to the amounts
due and payable on the Class C Notes in respect of interest;

     NINTH: to Holders of the Class C Notes for amounts due and unpaid on the Class C Notes in
respect of principal, ratably, without preference or priority of any kind, according to the amounts
due and payable on the Class C Notes in respect of principal, until the Outstanding Amount of the
Class C Notes is reduced to zero;

     TENTH: to Holders of the Class D Notes for amounts due and unpaid on the Class D Notes in
respect of interest, ratably, without preference or priority of any kind, according to the amounts
due and payable on the Class D Notes in respect of interest;

     ELEVENTH: to Holders of the Class D Notes for amounts due and unpaid on the Class D Notes in
respect of principal, ratably, without preference or priority of any kind, according to the amounts
due and payable on the Class D Notes in respect of principal, until the Outstanding Amount of the
Class D Notes is reduced to zero;

     TWELFTH: to the Certificate Distribution Account, for distribution to the Certificateholders.

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

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     (ii) Except as provided in Section 5.04(b)(i), the Indenture
Trustee shall make all payments and distributions of the Trust Estate

in accordance with Section 8.02.

     Section 5.05. Optional Preservation of the Receivables. If the Notes have been declared to be
due and payable under Section 5.02 following an Event of Default, and such declaration and its
consequences have not been rescinded and annulled, the Indenture Trustee may, but need not, elect
to maintain possession of the Trust Estate. It is the desire of the parties hereto and the
Noteholders that there be at all times sufficient funds for the payment of principal of and
interest on the Notes, and the Indenture Trustee shall take such desire into account when
determining whether or not to maintain possession of the Trust Estate. In determining whether or
not to maintain possession of the Trust Estate, the Indenture Trustee may, at the expense of the
Issuer and paid in the priority set forth in Section 5.05(b) of the Sale and Servicing Agreement,
but need not, obtain and conclusively rely upon an opinion of an Independent investment banking or
accounting firm of national reputation as to the feasibility of such proposed action and as to the
sufficiency of the Trust Estate for such purpose.

     Section 5.06. Limitation of Suits. No Holder of any Note shall have any right to institute any
Proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a
receiver or trustee, or for any other remedy hereunder, unless:

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

     (ii) the Event of Default arises from the Servicer’s failure to
remit payments when due or the Holders of not less than 25% of the
Outstanding Amount of the Controlling Class of Notes have made written
request to the Indenture Trustee to institute such Proceeding in
respect of such Event of Default in its own name as Indenture Trustee
hereunder;

     (iii) such Holder or Holders have offered to the Indenture
Trustee reasonable indemnity against the costs, expenses and

liabilities that may be incurred in complying with such request;

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

such Proceedings; and

     (v) no direction inconsistent with such written request has been
given to the Indenture Trustee during such sixty (60) day period by
the Holders of a majority of the Outstanding Amount of the Controlling
Class of Notes.

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

     In the event the Indenture Trustee shall receive conflicting or inconsistent requests and
indemnity from two or more groups of Holders of Notes pursuant to this Section,

36

 

each representing less than a majority of the Outstanding Amount of the Controlling Class of Notes,
the Indenture Trustee shall act at the direction of the group representing the greater percentage
of the Outstanding Amount of Notes and if there is no such group then in its sole discretion may
determine what action, if any, shall be taken, notwithstanding any other provisions of this
Indenture.

     Section 5.07. Unconditional Rights of Noteholders To Receive Principal and Interest.
Notwithstanding any other provisions in this Indenture, the Holder of any Note shall have the
right, which is absolute and unconditional, to receive payment of the principal of and interest, if
any, on such Note on or after the respective due dates thereof expressed in such Note or in this
Indenture (or, in the case of redemption, on or after the Redemption Date) and to institute suit
for the enforcement of any such payment, and such right shall not be impaired without the consent
of such Holder.

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

     Section 5.09. Rights and Remedies Cumulative. No right or remedy herein conferred upon or
reserved to the Indenture Trustee or to the Noteholders is intended to be exclusive of any other
right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative
and in addition to every other right and remedy given hereunder or now or hereafter existing at law
or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right
or remedy.

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

     Section 5.11. Control by the Controlling Class of Noteholders. The Holders of a majority of
the Outstanding Amount of the Controlling Class of Notes shall have the right to direct the time,
method and place of conducting any Proceeding for any remedy available to the Indenture Trustee
with respect to the Notes or exercising any trust or power conferred on the Indenture Trustee;
provided that:

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

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     (ii) subject to the express terms of Section 5.04, any direction
to the Indenture Trustee to sell or liquidate the Trust Estate shall
be by Holders of Notes representing not less than 100% of the
Outstanding Amount of the Controlling Class of Notes;

     (iii) if the conditions set forth in Section 5.05 have been
satisfied and the Indenture Trustee elects to retain the Trust Estate
pursuant to such Section, then any written direction to the Indenture
Trustee by Holders of Notes representing less than 100% of the
Outstanding Amount of the Notes to sell or liquidate the Trust Estate
shall be of no force and effect; and

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

direction.

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

     Section 5.12. Waiver of Past Defaults. Prior to the declaration of the acceleration of the
maturity of the Notes as provided in Section 5.02, the Holders of Notes of not less than a majority
of the Outstanding Amount of the Controlling Class of Notes may, waive any past Default or Event of
Default and its consequences except a Default (a) in payment of principal of or interest on any of
the Notes or (b) in respect of a covenant or provision hereof that cannot be modified or amended
without the consent of the Holder of each Note. In the case of any such waiver, the Issuer, the
Indenture Trustee and the Holders of the Notes shall be restored to their former positions and
rights hereunder, respectively; but no such waiver shall extend to any subsequent or other Default
or impair any right consequent thereto.

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

     Section 5.13. Undertaking for Costs. All parties to this Indenture agree, and each Holder of a
Note by such Holder’s acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or
in any suit against the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs
of such suit, and that such court may in its discretion assess reasonable costs, including
reasonable attorneys’ fees, against any party litigant in such suit, having due regard to the
merits and good faith of the claims or defenses made by such party litigant; but the provisions of
this Section shall not apply to (a) any suit instituted by the Indenture Trustee, (b) any suit
instituted by any Noteholder, or group of Noteholders, in each case holding in the aggregate more
than 10% of the Outstanding Amount of the Notes (or in the case of a right or remedy under this
Indenture which is instituted by the Controlling Class, more than 10% of the Outstanding Amount of
the Controlling Class) or (c) any suit instituted by any Noteholder for the

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enforcement of the payment of principal of or interest on any Note on or after the respective due
dates expressed in such Note and in this Indenture (or, in the case of redemption, on or after the
Redemption Date).

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

     Section 5.15. Action on Notes. The Indenture Trustee’s right to seek and recover judgment on
the Notes or under this Indenture shall not be affected by the seeking, obtaining or application of
any other relief under or with respect to this Indenture. Neither the lien of this Indenture nor
any rights or remedies of the Indenture Trustee or the Noteholders shall be impaired by the
recovery of any judgment by the Indenture Trustee against the Issuer or by the levy of any
execution under such judgment upon any portion of the Trust Estate or upon any of the assets of the
Issuer. Any money or property collected by the Indenture Trustee shall be applied in accordance
with Section 5.04(b).

     Section 5.16. Performance and Enforcement of Certain Obligations.

     (a) Promptly following a request from the Indenture Trustee to do so and at the
Administrator’s expense, the Issuer shall take all such lawful action as the Indenture Trustee may
request to compel or secure the performance and observance by the Seller or the Servicer, as
applicable, of each of their obligations to the Issuer under or in connection with the Sale and
Servicing Agreement or the Receivables Purchase Agreement, as applicable, and to exercise any and
all rights, remedies, powers and privileges lawfully available to the Issuer under or in connection
with the Sale and Servicing Agreement or the Receivables Purchase Agreement to the extent and in
the manner directed by the Indenture Trustee, including the transmission of notices of default on
the part of either Seller or the Servicer thereunder and the institution of legal or administrative
actions or proceedings to compel or secure performance by the Seller or the Servicer of each of
their obligations under the Sale and Servicing Agreement and the Receivables Purchase Agreement;
provided, however, nothing herein shall in any way impose on the Indenture Trustee the duty to
monitor the performance of the Seller or the Servicer of any of their liabilities, duties or
obligations under any Basic Document.

     (b) If an Event of Default has occurred, the Indenture Trustee may, and at the direction
(which direction shall be in writing) of the Holders of not less than a majority of the Outstanding
Amount of the Controlling Class of Notes shall, exercise all rights, remedies, powers, privileges
and claims of the Issuer against the Seller or the Servicer under or in connection with the Sale
and Servicing Agreement and the Receivables Purchase Agreement, including the right or power to
take any action to compel or secure performance or observance by the Seller or the Servicer, as the
case may be, of each of their obligations to the Issuer thereunder and to give any consent,
request, notice, direction, approval, extension or waiver

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under the Sale and Servicing Agreement and the Receivables Purchase Agreement, as the case may be,
and any right of the Issuer to take such action shall be suspended.

ARTICLE VI.

THE INDENTURE TRUSTEE

     Section 6.01. Duties of Indenture Trustee.

     (a) If an Event of Default has occurred and is continuing of which a Responsible Officer of
the Indenture Trustee has actual knowledge, the Indenture Trustee shall exercise the rights and
powers vested in it by this Indenture and use the same degree of care and skill in their exercise
as a prudent person would exercise or use under the circumstances in the conduct of such person’s
own affairs.

     Except during the continuance of an Event of Default, the Indenture Trustee undertakes to
perform such duties and only such duties as are specifically set forth in this Indenture and no
implied covenants or obligations shall be read into this Indenture against the Indenture Trustee.
In the absence of bad faith or negligence on its part, the Indenture Trustee may conclusively rely,
as to the truth of the statements and the correctness of the opinions expressed therein, upon the
face value of the certificates, reports, resolutions, documents, orders, opinions or other
instruments furnished to the Indenture Trustee and conforming to the requirements of this
Indenture; provided, however, that the Indenture Trustee shall not be responsible for the accuracy
or content of any such resolution, certificate, statement, opinion, report, document, order or
other instrument; however, the Indenture Trustee shall examine the certificates and opinions to
determine whether or not they conform to the requirements of this Indenture. If any such instrument
is found not to conform in any material respect to the requirements of this Agreement, the
Indenture Trustee shall notify the Noteholders of such instrument in the event that the Indenture
Trustee, after so requesting, does not receive a satisfactorily corrected instrument.

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

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

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

     (iii) the Indenture Trustee shall not be liable with respect to
any action it takes or omits to take in good faith in accordance with
a direction received by it pursuant to the terms of this Indenture or
any other Basic Documents.

     (c) Every provision of this Indenture that in any way relates to the Indenture Trustee is
subject to this Section.

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     (d) The Indenture Trustee shall not be liable for indebtedness evidenced by or arising under
any of the Basic Documents, including principal of or interest on the Notes, or interest on any
money received by it except as the Indenture Trustee may agree in writing with the Issuer.

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

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

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

     (h) In no event shall the Indenture Trustee be required to perform, or be responsible for the
manner of performance of, any of the obligations of the Servicer or any other party under the Sale
and Servicing Agreement.

     (i) The Indenture Trustee shall have no duty (A) to see to any recording, filing, or
depositing of this Indenture or any agreement referred to herein or any financing statement or
continuation statement evidencing a security interest, or to see to the maintenance of any such
recording or filing or depositing or to any rerecording, refiling or redepositing of any thereof,
(B) to see to any insurance, or (C) to see to the payment or discharge of any tax, assessment, or
other governmental charge or any lien or encumbrance of any kind owing with respect to, assessed or
levied against, any part of the Trust Fund.

     The Indenture Trustee, or a Responsible Officer thereof, shall be charged with actual
knowledge of any default or an Event of Default if a Responsible Officer actually knows of such
default or Event of Default or the Indenture Trustee receives written notice of such default or
Event of Default from the Issuer, the Servicer or Noteholders owning Notes aggregating not less
than 10% of the Outstanding Amount of the Notes. Notwithstanding the foregoing, the Indenture
Trustee shall not be required to take notice and in the absence of such actual notice and
knowledge, the Indenture Trustee may conclusively assume that there is no such default or Event of
Default.

     Section 6.02. Rights of Indenture Trustee.

     (a) The Indenture Trustee may conclusively rely on the face value of any document believed by
it to be genuine and to have been signed or presented by the proper person. The Indenture Trustee
need not investigate any fact or matter stated in the document.

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

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Certificate or Opinion of Counsel from the appropriate party. The right of the Indenture Trustee to
perform any discretionary act enumerated in this Indenture or in any Basic Document shall not be
construed as a duty of the Indenture Trustee and the Indenture Trustee shall not be answerable for
other than its negligence or willful misconduct in the performance of such discretionary act.

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

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

     (e) The Indenture Trustee may consult, at the Issuer’s expense and paid in accordance with
Section 4.16 of the Sale and Servicing Agreement or, to the extent not so paid, in accordance with
and in the priority set forth in Section 5.05(b) of the Sale and Servicing Agreement, with counsel,
and the written advice or opinion of counsel with respect to legal matters relating to this
Indenture and the Notes shall be full and complete authorization and protection from liability in
respect to any action taken, omitted or suffered by it hereunder in good faith and in accordance
with the advice or opinion of such counsel.

     (f) In the event that the Indenture Trustee is also acting as Paying Agent, Note Registrar or
collateral agent, the rights and protections afforded to the Indenture Trustee pursuant to this
Article 6 shall be afforded to such Paying Agent, Note Registrar or collateral agent.

     (g) The Indenture Trustee shall be under no obligation to exercise any of the trusts or powers
vested in it by this Indenture or to institute, conduct or defend any litigation hereunder or in
relation hereto at the request, order or direction of any of the Noteholders, pursuant to the
provisions of this Indenture, unless such Noteholders shall have offered to the Indenture Trustee
reasonable security or indemnity against the costs, expenses and liabilities which may be incurred
therein or thereby;

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

     (i) The Indenture Trustee shall not be required to give any bond or surety in respect of the
powers granted hereunder.

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

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

     Section 6.05. Notice of Defaults. If a Default occurs and is continuing and if it is actually
known to a Responsible Officer of the Indenture Trustee, the Indenture Trustee shall mail to each
Noteholder notice of the Default within thirty (30) days after it occurs. Except in the case of a
Default in payment of principal of or interest on any Note (including payments pursuant to the
mandatory redemption provisions of such Note), the Indenture Trustee may withhold the notice to
Noteholders if and so long as a committee of its Responsible Officers in good faith determines that
withholding the notice is in the interests of Noteholders.

     Section 6.06. Reports by Indenture Trustee to Holders. Solely from information provided by the
Servicer, the Indenture Trustee shall deliver to each Noteholder such information as may be
required to enable such holder to prepare its federal and state income tax returns.

     Section 6.07. Compensation and Indemnity. The Issuer shall cause the Servicer to pay to the
Indenture Trustee from time to time reasonable compensation for its services. The Indenture
Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express
trust. The Issuer shall cause the Servicer to reimburse the Indenture Trustee for all reasonable
out-of-pocket expenses incurred or made by it, including costs of collection, in addition to the
compensation for its services. Such expenses shall include but are not limited to the reasonable
out-of-pocket compensation and expenses, disbursements and advances of the Indenture Trustee’s
agents, counsel, accountants and experts. The Issuer shall cause the Servicer to indemnify the
Indenture Trustee against any and all loss, liability or expense (including attorneys’ fees and
expenses) incurred by it in connection with the administration of this trust and the performance of
its duties hereunder or under the Sale and Servicing Agreement or under any other Basic Document.
The Indenture Trustee shall notify the Issuer and the Servicer promptly of any claim for which it
may seek indemnity. Failure by the Indenture Trustee to so notify the Issuer and the Servicer shall
not relieve the Issuer or the Servicer of its obligations hereunder. The Issuer shall, or shall
cause the Servicer to, defend any such claim, and the Indenture Trustee may have separate counsel
and the Issuer shall, or shall cause the Administrator to, pay the fees and expenses of such
counsel. Neither the Issuer nor the Servicer need reimburse any expense or indemnify against any
loss, liability or expense incurred by the Indenture Trustee through the Indenture Trustee’s own
willful misconduct, negligence or bad faith. Anything in this Agreement to the contrary
notwithstanding, in no event shall the Indenture Trustee be liable for special, indirect or
consequential loss or damage of any kind whatsoever (including but not limited to lost profits),
even if the Indenture Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action.

     The Issuer’s payment obligations to the Indenture Trustee and the Administrator’s indemnities
to the Indenture Trustee pursuant to this Section shall survive the discharge of this Indenture or
the earlier resignation or removal of the Indenture Trustee. When the Indenture Trustee incurs
expenses after the occurrence of a Default specified in Section 5.01(iv) or (v) with respect to the
Issuer, the expenses are intended to constitute expenses of administration under

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Title 11 of the United States Code or any other applicable federal or state bankruptcy, insolvency
or similar law.

     Section 6.08. Replacement of Indenture Trustee. No resignation or removal of the Indenture
Trustee and no appointment of a successor Indenture Trustee shall become effective until the
acceptance of appointment by the successor Indenture Trustee pursuant to this Section 6.08. The
Indenture Trustee may resign at any time by so notifying the Issuer and each Rating Agency. The
Holders of a majority in Outstanding Amount of the Controlling Class of Notes may remove the
Indenture Trustee by notifying the Indenture Trustee if:

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

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

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

     (iv) the Indenture Trustee otherwise becomes incapable of acting;
or

     (v) the Indenture Trustee breaches any representation, warranty
or covenant made by it under any Basic Document.

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

     A successor Indenture Trustee shall deliver a written acceptance of its appointment to the
retiring Indenture Trustee and to the Issuer. Thereupon the resignation or removal of the retiring
Indenture Trustee shall become effective, and the successor Indenture Trustee shall have all the
rights, powers and duties of the Indenture Trustee under this Indenture. The retiring Indenture
Trustee shall be paid all amounts owed to it upon its resignation or removal. The successor
Indenture Trustee shall mail a notice of its succession to Noteholders. The retiring Indenture
Trustee shall promptly transfer all property held by it as Indenture Trustee to the successor
Indenture Trustee. The retiring Indenture Trustee shall not be liable for the acts or omissions of
any Successor Indenture Trustee.

     If a successor Indenture Trustee does not take office within 45 days after the retiring
Indenture Trustee resigns or is removed, the retiring Indenture Trustee, the Issuer or the Holders
of a majority in Outstanding Amount of the Controlling Class of Notes may petition any court of
competent jurisdiction for the appointment of a successor Indenture Trustee.

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

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

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     Section 6.09. Successor Indenture Trustee by Merger. If the Indenture Trustee consolidates
with, merges or converts into, or transfers all or substantially all its corporate trust business
or assets to, another corporation or banking association, the resulting, surviving or transferee
corporation without any further act shall be the successor Indenture Trustee; provided, that such
corporation or banking association shall be qualified and eligible under Section 6.11.

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

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

     (a) Notwithstanding any other provisions of this Indenture, at any time, for the purpose of
meeting any legal requirement of any jurisdiction in which any part of the Trust Estate may at the
time be located, the Indenture Trustee shall have the power and may execute and deliver all
instruments to appoint one or more Persons to act as a co-trustee or co-trustees, or separate
trustee or separate trustees, of all or any part of the Trust, and to vest in such Person or
Persons, in such capacity and for the benefit of the Noteholders, such title to the Trust Estate,
or any part thereof, and, subject to the other provisions of this Section, such powers, duties,
obligations, rights and trusts as the Indenture Trustee may consider necessary or desirable. No
co-trustee or separate trustee hereunder shall be required to meet the terms of eligibility as a
successor trustee under Section 6.11 and no notice to Noteholders of the appointment of any
co-trustee or separate trustee shall be required under Section 6.08 hereof.

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

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

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

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

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

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

     Section 6.11. Eligibility; Disqualification. The Indenture Trustee shall at all times satisfy
the requirements of TIA Section 310(a). The Indenture Trustee shall have a combined capital and
surplus of at least $50,000,000.00 as set forth in its most recent published annual report of
condition, and the time deposits of the Indenture Trustee shall be rated at least A-1 by Standard &
Poor’s and P-1 by Moody’s. The Indenture Trustee shall comply with TIA Section 310(b), including
the optional provision permitted by the second sentence of TIA Section 310(b)(9); provided,
however, that there shall be excluded from the operation of TIA Section 310(b)(1) any indenture or
indentures under which other securities of the Issuer are outstanding if the requirements for such
exclusion set forth in TIA Section 310(b)(1) are met.

     Section 6.12. [Reserved].

     Section 6.13. Preferential Collection of Claims Against Issuer. The Indenture Trustee shall
comply with TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b).
An Indenture Trustee who has resigned or been removed shall be subject to TIA Section 311(a) to the
extent indicated.

     Section 6.14. Waiver of Setoffs. The Indenture Trustee hereby expressly waives any and all
rights of setoff that the Indenture Trustee may otherwise at any time have under applicable law
with respect to any Trust Account and agrees that amounts in the Trust Accounts shall at all times
be held and applied solely in accordance with the provisions hereof and of the other Basic
Documents.

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ARTICLE VII.

NOTEHOLDERS’ LISTS AND REPORTS

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

     Section 7.02. Preservation of Information; Communications to Noteholders.

     (a) The Indenture Trustee shall preserve, in as current a form as is reasonably practicable,
the names and addresses of the Holders of Notes contained in the most recent list furnished to the
Indenture Trustee as provided in Section 7.01 and the names and addresses of Holders of Notes
received by the Indenture Trustee in its capacity as Note Registrar. The Indenture Trustee may
destroy any list furnished to it as provided in such Section 7.01 upon receipt of a new list so
furnished. The Indenture Trustee shall make such list available to the Owner Trustee on written
request, and to the Noteholders upon written request of three or more Noteholders or one or more
Noteholders evidencing not less than 25% of the Outstanding Amount of the Notes. Upon receipt by
the Indenture Trustee of any request by a Noteholder to receive a copy of the current list of
Noteholders, the Indenture Trustee shall promptly notify the Administrator thereof by providing to
the Administrator a copy of such request and a copy of the list of Noteholders in response thereto.

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

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

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Section 7.03. Reports by Issuer.

(a) The Issuer shall:

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

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

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

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

     Section 7.04. Reports by Indenture Trustee. If required by TIA Section 313(a), within 60 days
after each March 31, beginning with March 31, 200[___], the Indenture Trustee shall mail to each
Noteholder as required by TIA Section 313(c) a brief report dated as of such date that complies
with TIA Section 313(a). The Indenture Trustee also shall comply with TIA Section 313(b).

ARTICLE VIII.

ACCOUNTS, DISBURSEMENTS AND RELEASES

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

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     Section 8.02. Trust Accounts.

     (a) On or prior to the Closing Date, the Issuer shall, or shall cause the Servicer to,
establish and maintain, in the name of the Indenture Trustee, for the benefit of the Noteholders
the Trust Accounts as provided in Section 5.02 of the Sale and Servicing Agreement.

     (b) The Issuer shall cause the Servicer to deposit all Available Amounts with respect to the
Collection Period preceding such Payment Date in the Collection Account not later than two Business
Days after receipt as provided in Section 5.03 and 5.04 of the Sale and Servicing Agreement.
However, if each condition to making monthly deposits as may be required by the Sale and Servicing
Agreement (including, the satisfaction of specified ratings criteria by the Servicer and the
absence of any Servicer Default) is satisfied, the Servicer may retain these amounts until the
Business Day immediately preceding the related Payment Date. On or before the Business Day prior to
each Payment Date, all amounts required to be withdrawn from the Reserve Account and deposited in
the Collection Account pursuant to Section 5.05 of the Sale and Servicing Agreement shall be
withdrawn by the Indenture Trustee from the Reserve Account and deposited to the Collection Account
as provided therein, as to which Issuer shall cause Servicer to timely provide the related
instructions.

     (c) On each Payment Date, except as provided in Section 5.04(b), the Indenture Trustee (based
on the information contained in the Servicer’s report delivered on or before the related
Determination Date pursuant to Section 4.09 of the Sale and Servicing Agreement) shall make the
withdrawals from the Collection Account and make deposits, distributions and payments, to the
extent of funds on deposit in the Collection Account with respect to the Collection Period
preceding such Payment Date (including funds, if any, deposited therein from the Reserve Account),
in accordance with the provisions of Section 5.05(b) of the Sale and Servicing Agreement (as to
which Issuer shall cause Servicer to timely provide the related instructions). On each Payment
Date, the Indenture Trustee (based on the information contained in the Servicer’s report delivered
on or before the related Determination Date pursuant to Section 4.09 of the Sale and Servicing
Agreement) shall withdraw the funds on deposit in the Interest Distribution Account with respect to
the Collection Period preceding such Payment Date and make distributions and payments in the
following order of priority:

     (i) first, to the Noteholders of Class A Notes, the accrued and
unpaid interest on the Class A Notes; provided that if there are not
sufficient funds available to pay the entire amount of the accrued and
unpaid interest on the Class A Notes, the amounts available shall be
applied to the payment of such interest on the Class A Notes on a pro
rata basis based upon the amount of interest due on each Class of
Class A Notes;

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

     (iii) third, to the Noteholders of Class C Notes, the accrued and
unpaid interest on the Class C Notes; provided that if there are not
sufficient funds available to pay the entire amount of the accrued and
unpaid interest on the Class

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C
Notes, the amounts available shall be applied to the payment of such interest on the Class C Notes on a pro rata basis; and

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

     (d) On each Payment Date, except as provided in Section 5.04(b), the Indenture Trustee (based
on the information contained in the Servicer’s report delivered on or before the related
Determination Date pursuant to Section 4.09 of the Sale and Servicing Agreement) shall withdraw the
funds on deposit in the Principal Distribution Account with respect to the Collection Period
preceding such Payment Date and make distributions and payments in the following order of priority:

     (i) first, to the Noteholders of the Class A Notes, the Class A
Principal Distributable Amount in the following order of priority:

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

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

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

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

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

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

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

     (v) fifth, to the Certificateholders, any amounts remaining in
the Principal Distribution Account.

     Section 8.03. General Provisions Regarding Accounts. The Indenture Trustee shall not in any
way be held liable by reason of any insufficiency in any of the Trust Accounts resulting from any
loss on any Eligible Investment included therein except for losses attributable to the Indenture
Trustee’s failure, in its commercial capacity as principal obligor and not as trustee, to make
payments on such Eligible Investments issued by the Indenture Trustee, in its commercial capacity
as principal obligor and not as trustee, in accordance with their terms.

     Section 8.04. Release of Trust Estate.

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

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

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accompanied by an Officer’s Certificate, an Opinion of Counsel and (if required by the TIA)
Independent Certificates in accordance with TIA Sections 314(c) and 314(d)(1) meeting the
applicable requirements of Section 11.01.

     (c) The Issuer agrees, upon request by the Servicer and representation by the Servicer that it
has complied with the procedure in Section 9.01 of the Sale and Servicing Agreement, to render the
Issuer Request to the Indenture Trustee in accordance with Section 4.04, and take such other
actions as are required in that Section.

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

ARTICLE IX.

SUPPLEMENTAL INDENTURES

     Section 9.01. Supplemental Indentures Without Consent of Noteholders.

     (a) Without the consent of the Holders of any Notes but with prior written notice to the
Rating Agencies (with copy to the Indenture Trustee), the Issuer and the Indenture Trustee, when
authorized by an Issuer Order and provided with an Issuer Officer’s Certificate stating that the
supplement will have no material adverse effect on any Noteholder, at any time and from time to
time, may enter into one or more supplemental indentures hereto (which shall conform to the
provisions of the Trust Indenture Act as in force at the date of the execution thereof), in form
satisfactory to the Indenture Trustee, for any of the following purposes:

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

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

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

conferred upon the Issuer;

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

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

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

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

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

     (b) The Issuer and the Indenture Trustee, when authorized by an Issuer Order, may, also
without the consent of any of the Holders of the Notes but with prior notice to the Rating
Agencies, enter into an indenture or indentures supplemental hereto for the purpose of adding any
provisions to, or changing in any manner or eliminating any of the provisions of, this Indenture or
of modifying in any manner the rights of the Holders of the Notes under this Indenture; provided,
however, that such action shall not, as evidenced by an Opinion of Counsel (which may not be
in-house counsel), adversely affect in any material respect the interests of any Noteholder,
provided further that such action shall not be deemed to adversely affect in any material respect
the interests of any Noteholder and no Opinion of Counsel to that effect shall be required if the
person requesting such amendment obtains a letter from the Rating Agencies stating that the
amendment would not result in the downgrading or withdrawal of the ratings then assigned to the
Notes.

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

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

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

     (iii) modify or alter (x) the provisions of the proviso as to the
definition of the term “Outstanding” or (y) the definition of

Controlling Class;

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

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

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

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

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

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

     Section 9.03. Execution of Supplemental Indentures. In executing, or permitting the additional
trusts created by, any supplemental indenture permitted by this Article IX or the modification
thereby of the trusts created by this Indenture, the Indenture Trustee shall be entitled to receive
and shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of
such supplemental indenture is authorized or permitted by this Indenture. The Indenture Trustee
may, but shall not be obligated to, enter into any such supplemental indenture that affects the
Indenture Trustee’s own rights, duties, liabilities or immunities under this Indenture or
otherwise. The Administrator shall provide a fully executed copy of any supplemental indentures to
this Indenture to each Rating Agency.

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

     Section 9.05. Reference in Notes to Supplemental Indentures. Notes authenticated and delivered
after the execution of any supplemental indenture pursuant to this Article IX may, and if required
by the Indenture Trustee shall, bear a notation in form approved by the Indenture Trustee as to any
matter provided for in such supplemental indenture. If the Issuer or the Indenture Trustee shall so
determine, new Notes so modified as to conform, in the opinion of the Indenture Trustee and the
Issuer, to any such supplemental indenture may be prepared and executed by the Issuer and
authenticated and delivered by the Indenture Trustee in exchange for Outstanding Notes.

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

ARTICLE X.

REDEMPTION OF NOTES

     Section 10.01. Redemption. The Notes are subject to redemption in whole, but not in part, at
the direction of the Servicer pursuant to Section 9.01 of the Sale and Servicing Agreement, on any
Payment Date on which the Servicer exercises its option to purchase the

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Trust Estate pursuant to said Section 9.01, for a purchase price equal to the Redemption Price;
provided, that the Issuer has available funds sufficient to pay the Redemption Price. The Servicer
or the Issuer shall furnish the Rating Agencies and the Indenture Trustee notice of such
redemption. If the Notes are to be redeemed pursuant to this Section 10.01, the Servicer shall
furnish notice of such election to the Indenture Trustee not later than 20 days prior to the
Redemption Date and shall deposit the Business Day prior to the Redemption Date with the Indenture
Trustee in the Note Distribution Account the Redemption Price of the Notes to be redeemed,
whereupon all such Notes shall be due and payable on the Redemption Date upon the furnishing of a
notice complying with Section 10.02 to each Holder of the Notes.

     Section 10.02. Form of Redemption Notice. Notice of redemption under Section 10.01 shall be
given by the Indenture Trustee by first-class mail, postage prepaid, or by facsimile mailed or
transmitted not later than 10 days prior to the applicable Redemption Date to each Holder of Notes,
as of the close of business on the Record Date preceding the applicable Redemption Date, at such
Holder’s address or facsimile number appearing in the Note Register.

     All notices of redemption shall state:

     (i) the Redemption Date;

     (ii) the Redemption Price;

     (iii) the place where such Notes are to be surrendered for
payment of the Redemption Price (which shall be the office or agency

of the Issuer to be maintained as provided in Section 3.02); and

     (iv) that interest on the Notes shall cease to accrue on the
Redemption Date.

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

     Section 10.03. Notes Payable on Redemption Date. The Notes or portions thereof to be redeemed
shall, following notice of redemption as required by Section 10.02 (in the case of redemption
pursuant to Section 10.01), on the Redemption Date become due and payable at the Redemption Price
and (unless the Issuer shall default in the payment of the Redemption Price) no interest shall
accrue on the Redemption Price for any period after the date to which accrued interest is
calculated for purposes of calculating the Redemption Price.

ARTICLE XI.

MISCELLANEOUS

     Section 11.01. Compliance Certificates and Opinions, etc.

     (a) Upon any application or request by the Issuer to the Indenture Trustee to take any action
under any provision of this Indenture, the Issuer shall furnish to the Indenture

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Trustee (i) an Officer’s Certificate stating that all conditions precedent, if any, provided for in
this Indenture relating to the proposed action have been complied with and (ii) an Opinion of
Counsel stating that in the opinion of such counsel all such conditions precedent, if any, have
been complied with and (iii) (if required by the TIA) an Independent Certificate from a firm of
certified public accountants meeting the applicable requirements of this Section, except that, in
the case of any such application or request as to which the furnishing of such documents is
specifically required by any provision of this Indenture, no additional certificate or opinion need
be furnished.

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

     (i) a statement that each signatory of such certificate or
opinion has read or has caused to be read such covenant or condition

and the definitions herein relating thereto;

     (ii) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions

contained in such certificate or opinion are based;

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

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

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

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the Issuer as set forth in the related Officer’s Certificate is less
than $25,000 or less than one percent of the Outstanding Amount of the
Notes.

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

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

     (v) Notwithstanding Section 4.04 or any other provision of this
Section, the Issuer may, without compliance with the requirements of
the other provisions of this Section, (A) collect, liquidate, sell or
otherwise dispose of Receivables and Financed Vehicles as and to the
extent permitted or required by the Basic Documents and (B) make cash
payments out of the Trust Accounts as and to the extent permitted or
required by the Basic Documents.

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

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

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possession of the Servicer, the applicable Seller, the Issuer or the Administrator, unless such
counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion
or representations with respect to such matters are erroneous.

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

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

     Section 11.03. Acts of Noteholders.

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

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

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

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

     Section 11.04. Notices, etc., to Indenture Trustee, Issuer and Rating Agencies. Any request,
demand, authorization, direction, notice, consent, waiver or Act of Noteholders or other documents
provided or permitted by this Indenture shall be in writing and, if such request,

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demand, authorization, direction, notice, consent, waiver or act of Noteholders is to be made upon,
given or furnished to or filed with:

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

     (ii) the Issuer by the Indenture Trustee or by any Noteholder,
shall be sufficient for every purpose hereunder if in writing and
mailed first-class, postage prepaid to the Issuer addressed to:
Hyundai Auto Receivables Trust 200[___], in care of [___],
as Owner Trustee, [Address], Attention: [___], or at any
other address previously furnished in writing to the Indenture Trustee
by the Issuer or the Administrator. The Issuer shall promptly transmit
any notice received by it from the Noteholders to the Indenture
Trustee.

     Notices required to be given to the Rating Agencies by the Issuer, the Indenture Trustee or
the Owner Trustee shall be in writing, personally delivered or mailed by certified mail, return
receipt requested, to (i) in the case of Moody’s, at the following address: Moody’s Investors
Service, Inc., ABS Monitoring Department, 99 Church Street, New York, New York 10007; (ii) in the
case of Standard & Poor’s, at the following address: Standard & Poor’s, a division of The
McGraw-Hill Companies, Inc., 55 Water Street, New York, New York 10041, Attention of Asset Backed
Surveillance Department; and (iii) in the case of Fitch, at the following address: Fitch, Inc., One
State Street Plaza, New York, New York 10004; or as to each of the foregoing, at such other address
as shall be designated by written notice to the other parties.

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

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

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

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

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

     Section 11.07. Effect of Headings and Table of Contents. The Article and Section headings
herein and the Table of Contents are for convenience only and shall not affect the construction
hereof.

     Section 11.08. Successors and Assigns. All covenants and agreements in this Indenture and the
Notes by the Issuer shall bind its successors and assigns, whether so expressed or not. All
agreements of the Indenture Trustee in this Indenture shall bind its successors, co-trustees and
agents.

     Section 11.09. Separability. In case any provision in this Indenture or in the Notes shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

     Section 11.10. Benefits of Indenture. Nothing in this Indenture or in the Notes, express or
implied, shall give to any Person, other than the parties hereto and their successors hereunder,
and the Noteholders, and any other party secured hereunder, and any other Person with an ownership
interest in any part of the Trust Estate, any benefit or any legal or equitable right, remedy or
claim under this Indenture.

     Section 11.11. Legal Holidays. In any case where the date on which any payment is due shall
not be a Business Day, then (notwithstanding any other provision of the Notes or this Indenture)
payment need not be made on such date, but may be made on the next succeeding Business Day with the
same force and effect as if made on the date on which nominally due, and no interest shall accrue
for the period from and after any such nominal date.

     Section 11.12. GOVERNING LAW. THIS INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS,
RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

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

61

 

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

     Section 11.15. Trust Obligation. No recourse may be taken, directly or indirectly, with
respect to the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes
or under this Indenture or any certificate or other writing delivered in connection herewith or
therewith, against (i) the Indenture Trustee or the Owner Trustee in its individual capacity, (ii)
any owner of a beneficial interest in the Issuer, including the Seller, or (iii) any partner,
owner, beneficiary, agent, officer, director, employee or agent of the Indenture Trustee or the
Owner Trustee in its individual capacity, any holder of a beneficial interest in the Issuer, the
Owner Trustee or the Indenture Trustee or of any successor or assign of the Indenture Trustee or
the Owner Trustee in its individual capacity, except as any such Person may have expressly agreed
(it being understood that the Indenture Trustee and the Owner Trustee have no such obligations in
their individual capacity). For all purposes of this Indenture, in the performance of any duties or
obligations of the Issuer hereunder, the Owner Trustee shall be subject to, and entitled to the
benefits of, the terms and provisions of Article VI, VII and VIII of the Trust Agreement.

     Section 11.16. No Petition. The Indenture Trustee, by entering into this Indenture, and each
Noteholder, by accepting a Note, hereby covenant and agree that they will not at any time institute
against the Issuer or the Depositor, or join in any institution against the Issuer or the
Depositor, of any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
or other proceedings under any United States federal or state bankruptcy or similar law in
connection with any obligations relating to the Notes, this Indenture or any of the Basic
Documents.

     Section 11.17. Inspection. The Issuer agrees that, on reasonable prior notice, it will permit
any representative of the Indenture Trustee, during the Issuer’s normal business hours, to examine
all the books of account, records, reports and other papers of the Issuer, to make copies and
extracts therefrom, to cause such books to be audited by Independent certified public accountants,
and to discuss the Issuer’s affairs, finances and accounts with the Issuer’s officers, employees
and Independent certified public accountants, all at such reasonable times and as often as may be
reasonably requested; provided, however, that the Indenture Trustee may only cause the books of the
Issuer to be audited on an annual basis, unless there occurs an Event of Default hereunder. The
Indenture Trustee shall, and shall cause its representatives to, hold in confidence all such
information except to the extent such information is publicly available or such disclosure may be
required by law (and all reasonable applications for confidential treatment are unavailing) and
except to the extent that the Indenture Trustee may reasonably determine with the advice of counsel
and after consultation with the Issuer that such disclosure is consistent with its obligations
hereunder.

     Section 11.18. Conflict with Trust Indenture Act. If any provision hereof limits, qualifies or
conflicts with another provision hereof that is required to be included in this

62

 

Indenture by any of the provisions of the Trust Indenture Act, such required provision shall
control.

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

     Section 11.19. Limitation of Liability. It is expressly understood and agreed by the parties
hereto that (a) this Indenture is executed and delivered by [___], not individually or
personally but solely as Owner Trustee of Hyundai Auto Receivables Trust 200[___], in the exercise
of the powers and authority conferred and vested in it, (b) each of the representations,
undertakings and agreements herein made on the part of the Issuer is made and intended not as
personal representations, undertakings and agreements by [___] but is made and intended for
the purpose for binding only the Issuer, (c) nothing herein contained shall be construed as
creating any liability on [___], individually or personally, to perform any covenant either
expressed or implied contained herein, all such liability, if any, being expressly waived by the
parties hereto and by any Person claiming by, through or under the parties hereto and (d) under no
circumstances shall [___] be personally liable for the payment of any indebtedness or
expenses of the Issuer or be liable for the breach or failure of any obligation, representation,
warranty or covenant made or undertaken by the Issuer under this Indenture or any other related
documents.

     Section 11.20. Representations and Warranties. The Issuer makes the representations and
warranties set forth below with respect to the Receivables, on which the Indenture Trustee relies.
Such representations and warranties speak as of the execution and delivery of this Indenture as of
the Closing Date, but shall survive the assignment of the Receivables to the Indenture Trustee, and
shall not be waived by the Indenture Trustee except in accordance with the terms of this Indenture.

     (a) This Indenture creates a valid and continuing security interest (as defined in the UCC) in
the Receivables in favor of the Indenture Trustee, which security interest is prior to all other
Liens, and is enforceable as such against creditors of and purchasers from the Issuer.

     (b) Each Receivables constitutes “chattel paper” within the meaning of the UCC as in effect in
the state of origination

     (c) Immediately upon the transfer thereof from the Depositor to the Issuer pursuant to the
Sale and Servicing Agreement, the Issuer shall have good and marketable title to each Receivable,
free and clear of any Lien of any Person.

     (d) The Issuer has caused, or will have caused, within ten days, the filing of all appropriate
financing statements in the proper filling office in the appropriate jurisdiction under the
applicable UCC in order to perfect the security interest in the Receivables granted to the
Indenture Trustee under this Indenture.

     (e) Other than the security interest granted to the Indenture Trustee pursuant to this
Indenture, the Issuer has not pledged, assigned, sold, granted a security interest in, or

63

 

otherwise conveyed any of the Receivables. The Issuer has not authorized the filing of and is not
aware of any financing statements against the Issuer that include a description of collateral
describing the Receivables other than any financing statement relating to the security interest
granted to the Indenture Trustee under this Indenture. The Issuer is not aware of any judgment or
tax lien filings against the Issuer.

     (f) The Contracts that constitute or evidence the Receivables do not have any marks or
notations indicating that they have been pledged, assigned or otherwise conveyed to any Person
other than the Indenture Trustee, except for such marks or notations indicating that they have been
pledged, assigned or otherwise conveyed (i) to the Depositor or the Issuer in accordance with the
Basic Documents, [(ii) pursuant to the Second Amended and Restated Receivables Purchase Agreement,
dated as of July 23, 2002, as amended, among the Seller, Hyundai BC Funding Corporation, Amsterdam
Funding Corporation, Asset One Securitization, LLC, Sheffield Receivables Corporation, Societe,
Generale, ABN AMRO Bank N.V. and Barclays Bank PLC and the Purchase and Sale Agreement dated as of
January 17, 2000, as amended between the Seller and Hyundai BC Funding Corporation] or (iii) to
HMFC in accordance with Dealer Agreements. All financing statements filed or to be filed against
the Issuer in favor of the Indenture Trustee in connection with this Indenture describing the
Receivables contain a statement to the following effect: “A purchase or security interest in any
collateral described in this financing statement will violate the rights of the Indenture Trustee.”

* * * * *

64

 

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

	 	 	 	 	 	 	 
	 	 	HYUNDAI AUTO RECEIVABLES TRUST 200[__],
	 
	 	 	 	 	 	 
	 

	 	By:
	 	[                                                                                ], not in	 	 
	 

	 	 	 	its individual capacity but solely as Owner Trustee,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	[                                                                                ], not in	 	 
	 

	 	 	 	its individual capacity but solely as Indenture Trustee,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

	 	 	 
	STATE OF

	 	) 
	 

	 	)  ss.:
	COUNTY OF

	 	) 

     BEFORE ME, the undersigned authority, a Notary Public in and for said county and state, on
this day personally appeared [___], a [___] of [___], not in its individual
capacity but solely as Owner Trustee of Hyundai Auto Receivables Trust 200[___], a Delaware
statutory business trust (the “Trust”) known to me to be the person and officer whose name is
subscribed to the foregoing instrument and acknowledged to me that the same was the act of the said
Trust, and that s/he executed the same as the act of said statutory business trust for the purpose
and consideration therein expressed, and in the capacities therein stated.

GIVEN UNDER MY HAND AND

SEAL OF OFFICE, this [___] day of [___] 200[___].

	 	 	 	 	 
	 

	 	 	 	 
	Notary Public

	 	 	 	 
	 
	 	 	 	 
	My commission expires:

	 	 	 	 
	 

	 	 	 	 

 

 

	 	 	 
	STATE OF

	 	) 
	 

	 	)   ss.:
	COUNTY OF

	 	) 

BEFORE ME, the undersigned authority, a Notary Public in and for said county and state, on this day
personally appeared [___], known to me to be the person and officer whose name is
subscribed to the foregoing instrument and acknowledged to me that the same was the act of
[___], a [___] banking association, and that s/he executed the same as the
act of said corporation for the purpose and consideration therein stated.

GIVEN UNDER MY HAND AND

SEAL OF OFFICE, this [___] day of [___] 200[___].

	 	 	 	 	 
	 

	 	 	 	 
	Notary Public

	 	 	 	 
	 
	 	 	 	 
	My commission expires:
	 	 	 	 
	 

	 	 	 	 

 

 

SCHEDULE A

[To be Delivered to the Trust at Closing]

 

 

EXHIBIT A-1

[FORM OF CLASS A-1 NOTE]

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

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

	 	 	 	 	 	 	 
	REGISTERED	 	 	 	 
	CUSIP NO.
	 	 	 	 	$[___](1) No. R-	 
	 	 
	 	 	 	 	 
	 	 
	 	HYUNDAI AUTO RECEIVABLES TRUST 200[___]	 	 	 
	 	 	 	 	 	 	 
	 	 
	 	[___]% ASSET BACKED NOTE, CLASS A-1	 	 	 

     HYUNDAI AUTO RECEIVABLES TRUST 200[___], a statutory business trust organized and existing
under the laws of the State of Delaware (herein referred to as the “Issuer”), for value received,
hereby promises to pay to Cede & Co., or registered assigns, the principal sum of [___]
DOLLARS, payable on each Payment Date in an amount equal to the aggregate amount, if any, payable
from the Note Distribution Account in respect of principal on the Class A-1 Notes pursuant to
Section 3.01 of the Indenture dated as of [___], 200[___] (the “Indenture”), between the
Issuer and [___], a [___] banking association, as Indenture Trustee (the “Indenture
Trustee”); provided, however, that the entire unpaid principal amount of this Note shall be due and
payable on [the earlier of] [___], 200[___] (the “Class A-1 Maturity Date”) [and the
Redemption Date, if any, Pursuant to Article X of the Indenture]. Capitalized terms used but not
defined herein are defined in the Indenture, which also contains rules as to construction that
shall be applicable herein.

 

			
	(1)	 	Denomination of $1,000 and integral multiples of $1,000 in excess thereof.

A-1-1

 

     The Issuer will pay interest on this Note at the rate per annum set forth above, on each
Payment Date until the principal of this Note is paid or made available for payment, on the
principal amount of this Note outstanding on the preceding Payment Date (after giving effect to all
payments of principal made on the preceding Payment Date), subject to certain limitations contained
in the last sentence of Section 3.01 of the Indenture. Interest on this Note will accrue for each
Payment Date on the basis of a 360-day year and the actual number of days from the previous Payment
Date (or, in the case of the first Payment Date, from the Closing Date) to but excluding the next
Payment Date. Such principal of and interest on this Note shall be paid in the manner specified
herein.

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

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

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

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

     Principal of the Class A-1 Notes will be payable on each Payment Date in an amount described
on the face hereof. “Payment Date” means the [___] day of each month, or, if any such date is not
a Business Day, the next succeeding Business Day, commencing [___], 200[___].

     As described above, the entire unpaid principal amount of this Note shall be due and payable
on the [earlier of the] Class A-1 Maturity Date [and the Redemption Date, if any, pursuant to
Article X of the Indenture]. Notwithstanding the foregoing, if an Event of Default occurs, the
Indenture Trustee or the Holders of Notes representing not less than a majority of the Outstanding
Amount of the Controlling Class of Notes may declare the Notes to be immediately due and payable in
the manner provided in Section 5.02 of the Indenture. All principal payments on the Class A-1 Notes
shall be made pro rata to the Class A-1 Noteholders entitled thereto.

     Payments of interest on this Note due and payable on each Payment Date, together with the
installment of principal, if any, to the extent not in full payment of this Note, shall be made by
check mailed to the Person whose name appears as the Registered Holder of

A-1-2

 

this Note (or one or more Predecessor Notes) on the Note Register as of the close of business on
each Record Date, except that with respect to Notes registered on the Record Date in the name of
the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.), payments will be
made by wire transfer in immediately available funds to the account designated by such nominee.
Such checks shall be mailed to the Person entitled thereto at the address of such Person as it
appears on the Note Register as of the applicable Record Date without requiring that this Note be
submitted for notation of payment. Any reduction in the principal amount of this Note (or any one
or more Predecessor Notes) effected by any payments made on any Payment Date shall be binding upon
all future Holders of this Note and of any Note issued upon the registration of transfer hereof or
in exchange hereof or in lieu hereof, whether or not noted hereon. If funds are expected to be
available, as provided in the Indenture, for payment in full of the then remaining unpaid principal
amount of this Note on a Payment Date, then the Indenture Trustee, in the name of and on behalf of
the Issuer, will notify the Person who was the Registered Holder hereof as of the Record Date
preceding such Payment Date by notice mailed or transmitted by facsimile prior to such Payment
Date, and the amount then due and payable shall be payable only upon presentation and surrender of
this Note at the Indenture Trustee’s principal Corporate Trust Office or at the office of the
Indenture Trustee’s agent appointed for such purposes located in The City of New York.

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

     As provided in the Indenture and subject to the limitations set forth therein and on the face
hereof, the transfer of this Note may be registered on the Note Register upon surrender of this
Note for registration of transfer at the office or agency designated by the Issuer pursuant to the
Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney
duly authorized in writing, with such signature guaranteed by an “eligible guarantor institution”
meeting the requirements of the Note Registrar, which requirements include membership or
participation in the Securities Transfer Agent’s Medallion Program (“STAMP”) or such other
“signature guarantee program” as may be determined by the Note Registrar in addition to, or in
substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended,
and thereupon one or more new Notes of authorized denominations and in the same aggregate principal
amount will be issued to the designated transferee or transferees. No service charge will be
charged for any registration of transfer or exchange of this Note, but the transferor may be
required to pay a sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any such registration of transfer or exchange subject to certain exceptions set
forth in the Indenture.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture
Trustee on the Notes or under the Indenture or any certificate or other writing delivered in
connection therewith, against (i) the Seller, the Servicer, the Indenture Trustee or the Owner
Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Issuer,
including the Seller or (iii) any partner, owner, beneficiary, agent, officer, director or employee
of the Seller, the Servicer, the Indenture Trustee or the Owner Trustee in its individual capacity,
any holder of a beneficial interest in the Issuer, the Seller, the Servicer, the Owner Trustee or
the

A-1-3

 

Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee in
its individual capacity, except as any such Person may have expressly agreed and except that any
such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law,
for any unpaid consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity. Each Noteholder or Note Owner, by its acceptance of a
Note or, in the case of a Note Owner, a beneficial interest in a Note, agrees that, except as
expressly provided in the Basic Documents, in the case of an Event of Default under the Indenture,
the Noteholder shall have no claim against any of the foregoing for any deficiency, loss or claim
therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to,
and enforcement against, the assets of the Issuer for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Note.

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

     The Issuer has entered into the Indenture and this Note is issued with the intention that, for
purposes of federal and state income tax, franchise tax and any other tax measured in whole or in
part by income, the Notes will be characterized as indebtedness secured by the Trust Estate. Each
Noteholder, by acceptance of a Note (and each Note Owner by acceptance of a beneficial interest in
a Note), agrees to treat the Notes for such purposes as indebtedness.

     This Note, or any interest therein, may not be transferred to an “employee benefit plan”
within the meaning of Section 3(3) of ERISA that is subject to ERISA, a “plan” described in Section
4975(e)(1) of the Code, any entity that is deemed to hold “plan assets” of any of the foregoing by
reason of an employee benefit plan’s or other plan’s investment in such entity, or any
governmental, foreign or church plan subject to applicable law that is substantially similar to the
fiduciary responsibility provisions of ERISA or Section 4975 of the Code, unless such transferee
represents, warrants and covenants that its purchase and holding of this Note, throughout the
period that it holds this Note is, and will be, covered by Department of Labor prohibited
transaction class exemption (“PTE”) 90-1; PTE 96-23; PTE 95-60; PTE 91-38; PTE 84-14 or another
applicable prohibited transaction exemption (or in the case of a governmental, foreign or church
plan subject to law that is substantially similar to ERISA or Section 4975 of the Code, a similar
type of exemption or other applicable relief). By its acquisition of this Note in book-entry form
or any interest therein, each transferee will be deemed to have represented, warranted and
covenanted that it satisfies the foregoing requirements and the Indenture Trustee may relay
conclusively on the same for purposes hereof.

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

A-1-4

 

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

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

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

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

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

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

A-1-5

 

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

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date:	 	 	 	 	 	HYUNDAI AUTO RECEIVABLES TRUST 200[__]	 	 
	 

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

	 	 	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Authorized Signatory	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date:	 	 	 	 	 	 	 	[______________________], not in its	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	individual capacity but solely as Indenture	 	 
	 	 	 	 	 	 	 	 	Trustee,	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Authorized Signatory	 	 

A-1-6

 

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee: ___FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto:

	 	 	 
	 

	 	 
	(name and address of assignee)

	 	 

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

	 	 	 	 	 
	Dated:

	 	 	 	*/
	 

	 	 	 	 

	 	 	 
	Signature Guaranteed:

	 	 
	 
	 	 

 

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

A-1-7

 

EXHIBIT A-2

[FORM OF CLASS A-2 NOTE]

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

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

	 	 	 	 	 	 	 	 
	REGISTERED	 	 	 	 	 
	CUSIP 	NO.
	 	 	 	 	$[___](1) No. R-	 
	 	 	 
	 	 	 	 	 
	 	 	 
	 	HYUNDAI AUTO RECEIVABLES TRUST 200[___]	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 
	 	[___]% ASSET BACKED NOTE, CLASS A-2	 	 	 

     HYUNDAI AUTO RECEIVABLES TRUST 200[___], a statutory business trust organized and existing
under the laws of the State of Delaware (herein referred to as the “Issuer”), for value received,
hereby promises to pay to Cede & Co., or registered assigns, the principal sum of [___]
DOLLARS, payable on each Payment Date in an amount equal to the aggregate amount, if any, payable
from the Note Distribution Account in respect of principal on the Class A-2 Notes pursuant to
Section 3.01 of the Indenture dated as of [___], 200[___] (the “Indenture”), between the
Issuer and [___], a [___] banking association, as Indenture Trustee (the “Indenture
Trustee”); provided, however, that the entire unpaid principal amount of this Note shall be due and
payable on [the earlier of] [___], 200[___] (the “Class A-2 Maturity Date”) [and the
Redemption Date, if any, pursuant to Article X of the Indenture]. Capitalized terms used but not
defined herein are defined in the Indenture, which also contains rules as to construction that
shall be applicable herein.

 

			
	(1)	 	Denominations of $1,000 and integral multiples of $1,000 in excess thereof.

A-2-1

 

     The Issuer will pay interest on this Note at the rate per annum set forth above, on each
Payment Date until the principal of this Note is paid or made available for payment, on the
principal amount of this Note outstanding on the preceding Payment Date (after giving effect to all
payments of principal made on the preceding Payment Date), subject to certain limitations contained
in the last sentence of Section 3.01 of the Indenture. Interest on this Note will accrue for each
Payment Date from and including the [___] day of the month preceding the month of such Payment
Date (or, in the case of the first Payment Date, from the Closing Date) to but excluding the [___]
day of the month of such Payment Date. Interest will be computed on the basis of a 360-day year
consisting of twelve 30-day months. Such principal of and interest on this Note shall be paid in
the manner specified herein.

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

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

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

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

     Principal of the Class A-2 Notes will be payable on each Payment Date in an amount described
on the face hereof. “Payment Date” means the [___] day of each month, or, if any such date is not
a Business Day, the next succeeding Business Day, commencing [___], 200[___].

     As described above, the entire unpaid principal amount of this Note shall be due and payable
on the [earlier of the] Class A-2 Maturity Date [and the Redemption Date, if any, pursuant to
Article X of the Indenture]. Notwithstanding the foregoing, if an Event of Default occurs, the
Indenture Trustee or the Holders of Notes representing not less than a majority of the Outstanding
Amount of the Controlling Class of Notes may declare the Notes to be immediately due and payable in
the manner provided in Section 5.02 of the Indenture. All principal payments on the Class A-2 Notes
shall be made pro rata to the Class A-2 Noteholders entitled thereto.

A-2-2

 

     Payments of interest on this Note due and payable on each Payment Date, together with the
installment of principal, if any, to the extent not in full payment of this Note, shall be made by
check mailed to the Person whose name appears as the Registered Holder of this Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on each Record Date, except
that with respect to Notes registered on the Record Date in the name of the nominee of the Clearing
Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in
immediately available funds to the account designated by such nominee. Such checks shall be mailed
to the Person entitled thereto at the address of such Person as it appears on the Note Register as
of the applicable Record Date without requiring that this Note be submitted for notation of
payment. Any reduction in the principal amount of this Note (or any one or more Predecessor Notes)
effected by any payments made on any Payment Date shall be binding upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in
lieu hereof, whether or not noted hereon. If funds are expected to be available, as provided in the
Indenture, for payment in full of the then remaining unpaid principal amount of this Note on a
Payment Date, then the Indenture Trustee, in the name of and on behalf of the Issuer, will notify
the Person who was the Registered Holder hereof as of the Record Date preceding such Payment Date
by notice mailed or transmitted by facsimile prior to such Payment Date, and the amount then due
and payable shall be payable only upon presentation and surrender of this Note at the Indenture
Trustee’s principal Corporate Trust Office or at the office of the Indenture Trustee’s agent
appointed for such purposes located in The City of New York.

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

     As provided in the Indenture and subject to the limitations set forth therein and on the face
hereof, the transfer of this Note may be registered on the Note Register upon surrender of this
Note for registration of transfer at the office or agency designated by the Issuer pursuant to the
Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney
duly authorized in writing, with such signature guaranteed by an “eligible guarantor institution”
meeting the requirements of the Note Registrar, which requirements include membership or
participation in the Securities Transfer Agent’s Medallion Program (“STAMP”) or such other
“signature guarantee program” as may be determined by the Note Registrar in addition to, or in
substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended,
and thereupon one or more new Notes of authorized denominations and in the same aggregate principal
amount will be issued to the designated transferee or transferees. No service charge will be
charged for any registration of transfer or exchange of this Note, but the transferor may be
required to pay a sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any such registration of transfer or exchange subject to certain exceptions set
forth in the Indenture.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture
Trustee on the Notes or under the Indenture or any certificate or other writing delivered in
connection therewith, against (i) the Seller, the Servicer, the Indenture Trustee or the Owner
Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Issuer,

A-2-3

 

including the Seller or (iii) any partner, owner, beneficiary, agent, officer, director or employee
of the Seller, the Servicer, Indenture Trustee or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Seller, the Servicer, the Owner Trustee or the
Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee in
its individual capacity, except as any such Person may have expressly agreed and except that any
such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law,
for any unpaid consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity. Each Noteholder or Note Owner, by its acceptance of a
Note or, in the case of a Note Owner, a beneficial interest in a Note, agrees that, except as
expressly provided in the Basic Documents, in the case of an Event of Default under the Indenture,
the Noteholder shall have no claim against any of the foregoing for any deficiency, loss or claim
therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to,
and enforcement against, the assets of the Issuer for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Note.

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

     The Issuer has entered into the Indenture and this Note is issued with the intention that, for
purposes of federal and state income tax, franchise tax and any other tax measured in whole or in
part by income, the Notes will be characterized as indebtedness secured by the Trust Estate. Each
Noteholder, by acceptance of a Note (and each Note Owner by acceptance of a beneficial interest in
a Note), agrees to treat the Notes for such purposes as indebtedness.

     This Note, or any interest therein, may not be transferred to an “employee benefit plan”
within the meaning of Section 3(3) of ERISA that is subject to ERISA, a “plan” described in Section
4975(e)(1) of the Code, any entity that is deemed to hold “plan assets” of any of the foregoing by
reason of an employee benefit plan’s or other plan’s investment in such entity, or any
governmental, foreign or church plan subject to applicable law that is substantially similar to the
fiduciary responsibility provisions of ERISA or Section 4975 of the Code, unless such transferee
represents, warrants and covenants that its purchase and holding of this Note, throughout the
period that it holds this Note is, and will be, covered by Department of Labor prohibited
transaction class exemption (“PTE”) 90-1; PTE 96-23; PTE 95-60; PTE 91-38; PTE 84-14 or another
applicable prohibited transaction exemption (or in the case of a governmental, foreign or church
plan, subject to law that is substantially similar to ERISA or Section 4975 of the Code, a similar
type of exemption or other applicable relief). By its acquisition of this Note in book-entry form
or any interest therein, each transferee will be deemed to have represented, warranted and
covenanted that it satisfies the foregoing requirements and the Indenture Trustee may relay
conclusively on the same for purposes hereof.

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

A-2-4

 

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

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

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

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

     This Note and the Indenture shall be construed in accordance with the laws of the State of New
York, without reference to its conflict of law provisions, and the obligations, rights and remedies
of the parties hereunder and thereunder shall be determined in accordance with such laws. No
reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or
impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of
and interest on this Note at the times, place and rate, and in the coin or currency herein
prescribed.

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

A-2-5

 

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

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date:	 	 	 	 	 	HYUNDAI AUTO RECEIVABLES TRUST 200[__]	 	 
	 

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

	 	 	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Authorized Signatory	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date:	 	 	 	 	 	 	 	[________________________], not in its	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	individual capacity but solely as Indenture	 	 
	 	 	 	 	 	 	 	 	Trustee,	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Authorized Signatory	 	 

A-2-6

 

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee: ___FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto:

	 	 	 
	 

	 	 
	(name and address of assignee)

	 	 

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

	 	 	 	 	 
	Dated:

	 	 	 	*/
	 

	 	 	 	 

	 	 	 
	Signature Guaranteed:

	 	 
	 
	 	 

 

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

A-2-7

 

EXHIBIT A-3

[FORM OF CLASS A-3 NOTE]

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

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

	 	 	 	 	 	 	 
	REGISTERED	 	 	 	 
	CUSIP 
	NO.
	 	 	 	$[___](1) No. R-	 
	 	 
	 	 	 	 	 
	 	 
	 	HYUNDAI AUTO RECEIVABLES TRUST 200[___]	 	 	 
	 	 	 	 	 	 	 
	 	 
	 	[___]%
ASSET BACKED NOTE, CLASS A-3	 	 	 

     HYUNDAI AUTO RECEIVABLES TRUST 200[___], a statutory business trust organized and existing
under the laws of the State of Delaware (herein referred to as the “Issuer”), for value received,
hereby promises to pay to Cede & Co. or registered assigns, the principal sum of
[___] DOLLARS, payable on each Payment Date in an amount equal to the aggregate
amount, if any, payable from the Note Distribution Account in respect of principal on the Class A-3
Notes pursuant to Section 3.01 of the Indenture dated as of [___], 200[___] (the “Indenture”),
between the Issuer and [___], a [___] banking association, as Indenture Trustee (the
“Indenture Trustee”); provided, however, that the entire unpaid principal amount of this Note shall
be due and payable on [the earlier of] [___], 200[___] (the “Class A-3 Maturity Date”) [and the
Redemption Date, if any, pursuant to Article X of the Indenture]. Capitalized terms used but not
defined herein are defined in the Indenture, which also contains rules as to construction that
shall be applicable herein.

     The Issuer will pay interest on this Note at the rate per annum set forth above, on each
Payment Date until the principal of this Note is paid or made available for payment, on the

 

			
	(1)	 	Denominations of $1,000 and integral multiples of $1,000 in excess thereof.

A-3-1

 

principal amount of this Note outstanding on the preceding Payment Date (after giving effect to all
payments of principal made on the preceding Payment Date), subject to certain limitations contained
in the last sentence of Section 3.01 of the Indenture. Interest on this Note will accrue for each
Payment Date from and including the [___] day of the month preceding the month of such Payment
Date (or, in the case of the first Payment Date, from the Closing Date) to but excluding the [___]
day of the month of such Payment Date. Interest will be computed on the basis of a 360-day year
consisting of twelve 30-day months. Such principal of and interest on this Note shall be paid in
the manner specified herein.

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

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

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

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

     Principal of the Class A-3 Notes will be payable on each Payment Date in an amount described
on the face hereof. “Payment Date” means the [___] day of each month, or, if any such date is not
a Business Day, the next succeeding Business Day, commencing [___], 200[___].

     As described above, the entire unpaid principal amount of this Note shall be due and payable
on the [earlier of the] Class A-3 Maturity Date [and the Redemption Date, if any, pursuant to
Article X of the Indenture]. Notwithstanding the foregoing, if an Event of Default occurs, the
Indenture Trustee or the Holders of Notes representing not less than a majority of the Outstanding
Amount of the Controlling Class of Notes may declare the Notes to be immediately due and payable in
the manner provided in Section 5.02 of the Indenture. All principal payments on the Class A-3 Notes
shall be made pro rata to the Class A-3 Noteholders entitled thereto. Payments of interest on this
Note due and payable on each Payment Date, together with the installment of principal, if any, to
the extent not in full payment of this Note, shall be made by check mailed to the Person whose name
appears as the Registered Holder of this Note (or one or more Predecessor Notes) on the Note
Register as of the close of business on each Record Date,

A-3-2

 

except that with respect to Notes registered on the Record Date in the name of the nominee of the
Clearing Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer
in immediately available funds to the account designated by such nominee. Such checks shall be
mailed to the Person entitled thereto at the address of such Person as it appears on the Note
Register as of the applicable Record Date without requiring that this Note be submitted for
notation of payment. Any reduction in the principal amount of this Note (or any one or more
Predecessor Notes) effected by any payments made on any Payment Date shall be binding upon all
future Holders of this Note and of any Note issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof, whether or not noted hereon. If funds are expected to be
available, as provided in the Indenture, for payment in full of the then remaining unpaid principal
amount of this Note on a Payment Date, then the Indenture Trustee, in the name of and on behalf of
the Issuer, will notify the Person who was the Registered Holder hereof as of the Record Date
preceding such Payment Date by notice mailed or transmitted by facsimile prior to such Payment
Date, and the amount then due and payable shall be payable only upon presentation and surrender of
this Note at the Indenture Trustee’s principal Corporate Trust Office or at the office of the
Indenture Trustee’s agent appointed for such purposes located in The City of New York.

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

     As provided in the Indenture and subject to the limitations set forth therein and on the face
hereof, the transfer of this Note may be registered on the Note Register upon surrender of this
Note for registration of transfer at the office or agency designated by the Issuer pursuant to the
Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney
duly authorized in writing, with such signature guaranteed by an “eligible guarantor institution”
meeting the requirements of the Note Registrar, which requirements include membership or
participation in the Securities Transfer Agent’s Medallion Program (“STAMP”) or such other
“signature guarantee program” as may be determined by the Note Registrar in addition to, or in
substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended,
and thereupon one or more new Notes of authorized denominations and in the same aggregate principal
amount will be issued to the designated transferee or transferees. No service charge will be
charged for any registration of transfer or exchange of this Note, but the transferor may be
required to pay a sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any such registration of transfer or exchange subject to certain exceptions set
forth in the Indenture.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture
Trustee on the Notes or under the Indenture or any certificate or other writing delivered in
connection therewith, against (i) the Seller, the Servicer, the Indenture Trustee or the Owner
Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Issuer,
including the Seller or (iii) any partner, owner, beneficiary, agent, officer, director or employee
of the Seller, the Servicer, Indenture Trustee or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Seller, the Servicer, the Owner Trustee or the
Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee in
its individual capacity, except as any such Person may have expressly agreed and except that any

A-3-3

 

 

such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law,
for any unpaid consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity. Each Noteholder or Note Owner, by its acceptance of a
Note or, in the case of a Note Owner, a beneficial interest in a Note, agrees that, except as
expressly provided in the Basic Documents, in the case of an Event of Default under the Indenture,
the Noteholder shall have no claim against any of the foregoing for any deficiency, loss or claim
therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to,
and enforcement against, the assets of the Issuer for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Note.

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

     The Issuer has entered into the Indenture and this Note is issued with the intention that, for
purposes of federal and state income tax, franchise tax and any other tax measured in whole or in
part by income, the Notes will be characterized as indebtedness secured by the Trust Estate. Each
Noteholder, by acceptance of a Note (and each Note Owner by acceptance of a beneficial interest in
a Note), agrees to treat the Notes for such purposes as indebtedness.

     This Note, or any interest therein, may not be transferred to an “employee benefit plan”
within the meaning of Section 3(3) of ERISA that is subject to ERISA, a “plan” described in Section
4975(e)(1) of the Code, any entity that is deemed to hold “plan assets” of any of the foregoing by
reason of an employee benefit plan’s or other plan’s investment in such entity, or any
governmental, foreign or church plan subject to applicable law that is substantially similar to the
fiduciary responsibility provisions of ERISA or Section 4975 of the Code, unless such transferee
represents, warrants and covenants that its purchase and holding of this Note, throughout the
period that it holds this Note is, and will be, covered by Department of Labor prohibited
transaction class exemption (“PTE”) 90-1; PTE 96-23; PTE 95-60; PTE 91-38; PTE 84-14 or another
applicable prohibited transaction exemption (or in the case of a governmental, foreign, or church
plan, subject to law that is substantially similar to ERISA or Section 4975 of the Code, a similar
type of exemption or other applicable relief). By its acquisition of this Note in book-entry form
or any interest therein, each transferee will be deemed to have represented, warranted and
covenanted that it satisfies the foregoing requirements and the Indenture Trustee may relay
conclusively on the same for purposes hereof.

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

A-3-4

 

 

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

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

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

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

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

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

A-3-5

 

 

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

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date:	 	 	 	 	 	HYUNDAI AUTO RECEIVABLES TRUST 200[__]	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	[__________________], not in its individual	 	 
	 	 	 	 	 	 	 	 	capacity but solely as Owner Trustee under

the Trust Agreement,	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Authorized Signatory	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date:	 	 	 	 	 	 	 	[__________________], not in its individual	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	capacity but solely as Indenture Trustee,	 	 
	 
	 

	 	 	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Authorized Signatory	 	 

A-3-6

 

 

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee: ___FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto:

	 	 	 
	 

	 
	(name and address of assignee)

	 	 

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

	 	 	 	 	 
	Dated:

	 	 	 	*/
	 

	 	 	 	 

	 	 	 
	Signature Guaranteed:

	 	 

 

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

A-3-7

 

EXHIBIT A-4

[FORM OF CLASS A-4 NOTE]

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

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

	 	 	 	 	 	 	 
	REGISTERED	 	 	 	 
	CUSIP 
	NO.
	 	 	 	$[___](1) No. R-	 
	 	 
	 	 	 	 	 
	 	 
	 	HYUNDAI AUTO RECEIVABLES TRUST 200[___]	 	 	 
	 	 	 	 	 	 	 
	 	 
	 	[___]%
ASSET BACKED NOTE, CLASS A-4	 	 	 

     HYUNDAI AUTO RECEIVABLES TRUST 200[___], a statutory business trust organized and existing
under the laws of the State of Delaware (herein referred to as the “Issuer”), for value received,
hereby promises to pay to Cede & Co., or registered assigns, the principal sum of
[___] DOLLARS, payable on each Payment Date in an amount equal to the aggregate
amount, if any, payable from the Note Distribution Account in respect of principal on the Class A-4
Notes pursuant to Section 3.01 of the Indenture dated as of [___], 200[___] (the “Indenture”),
between the Issuer and [___], a [___] banking association, as Indenture Trustee
(the “Indenture Trustee”); provided, however, that the entire unpaid principal amount of this Note
shall be due and payable on [the earlier of] [___], 200[___] (the “Class A-4 Maturity Date”)
[and the Redemption Date, if any, pursuant to Article X of the Indenture]. Capitalized terms used
but not defined herein are defined in the Indenture, which also contains rules as to construction
that shall be applicable herein.

 

			
	(1)	 	Denominations of $1,000 and integral multiples of $1,000 in excess thereof.

A-4-1

 

     The Issuer will pay interest on this Note at the rate per annum set forth above, on each
Payment Date until the principal of this Note is paid or made available for payment, on the
principal amount of this Note outstanding on the preceding Payment Date (after giving effect to all
payments of principal made on the preceding Payment Date), subject to certain limitations contained
in the last sentence of Section 3.01 of the Indenture. Interest on this Note will accrue for each
Payment Date from and including the [___] day of the month preceding the month of such Payment
Date (or, in the case of the first Payment Date, from the Closing Date) to but excluding the [___]
day of the month of such Payment Date. Interest will be computed on the basis of a 360-day year
consisting of twelve 30-day months. Such principal of and interest on this Note shall be paid in
the manner specified herein.

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

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

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

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

     Principal of the Class A-4 Notes will be payable on each Payment Date in an amount described
on the face hereof. “Payment Date” means the [___] day of each month, or, if any such date is not
a Business Day, the next succeeding Business Day, commencing [___], 200[___].

     As described above, the entire unpaid principal amount of this Note shall be due and payable
on the [earlier of the] Class A-4 Maturity Date [and the Redemption Date, if any, pursuant to
Article X of the Indenture]. Notwithstanding the foregoing, if an Event of Default occurs, the
Indenture Trustee or the Holders of Notes representing not less than a majority of the Outstanding
Amount of the Controlling Class of Notes may declare the Notes to be immediately due and payable in
the manner provided in Section 5.02 of the Indenture. All principal payments on the Class A-4 Notes
shall be made pro rata to the Class A-4 Noteholders entitled thereto.

A-4-2

 

     Payments of interest on this Note due and payable on each Payment Date, together with the
installment of principal, if any, to the extent not in full payment of this Note, shall be made by
check mailed to the Person whose name appears as the Registered Holder of this Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on each Record Date, except
that with respect to Notes registered on the Record Date in the name of the nominee of the Clearing
Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in
immediately available funds to the account designated by such nominee. Such checks shall be mailed
to the Person entitled thereto at the address of such Person as it appears on the Note Register as
of the applicable Record Date without requiring that this Note be submitted for notation of
payment. Any reduction in the principal amount of this Note (or any one or more Predecessor Notes)
effected by any payments made on any Payment Date shall be binding upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in
lieu hereof, whether or not noted hereon. If funds are expected to be available, as provided in the
Indenture, for payment in full of the then remaining unpaid principal amount of this Note on a
Payment Date, then the Indenture Trustee, in the name of and on behalf of the Issuer, will notify
the Person who was the Registered Holder hereof as of the Record Date preceding such Payment Date
by notice mailed or transmitted by facsimile prior to such Payment Date, and the amount then due
and payable shall be payable only upon presentation and surrender of this Note at the Indenture
Trustee’s principal Corporate Trust Office or at the office of the Indenture Trustee’s agent
appointed for such purposes located in The City of New York.

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

     As provided in the Indenture and subject to the limitations set forth therein and on the face
hereof, the transfer of this Note may be registered on the Note Register upon surrender of this
Note for registration of transfer at the office or agency designated by the Issuer pursuant to the
Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney
duly authorized in writing, with such signature guaranteed by an “eligible guarantor institution”
meeting the requirements of the Note Registrar, which requirements include membership or
participation in the Securities Transfer Agent’s Medallion Program (“STAMP”) or such other
“signature guarantee program” as may be determined by the Note Registrar in addition to, or in
substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended,
and thereupon one or more new Notes of authorized denominations and in the same aggregate principal
amount will be issued to the designated transferee or transferees. No service charge will be
charged for any registration of transfer or exchange of this Note, but the transferor may be
required to pay a sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any such registration of transfer or exchange subject to certain exceptions set
forth in the Indenture.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture
Trustee on the Notes or under the Indenture or any certificate or other writing delivered in
connection therewith, against (i) the Seller, the Servicer, the Indenture Trustee or the Owner
Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Issuer,

A-4-3

 

including the Seller or (iii) any partner, owner, beneficiary, agent, officer, director or employee
of the Seller, the Servicer, Indenture Trustee or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Seller, the Servicer, the Owner Trustee or the
Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee in
its individual capacity, except as any such Person may have expressly agreed and except that any
such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law,
for any unpaid consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity. Each Noteholder or Note Owner, by its acceptance of a
Note or, in the case of a Note Owner, a beneficial interest in a Note, agrees that, except as
expressly provided in the Basic Documents, in the case of an Event of Default under the Indenture,
the Noteholder shall have no claim against any of the foregoing for any deficiency, loss or claim
therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to,
and enforcement against, the assets of the Issuer for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Note.

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

     The Issuer has entered into the Indenture and this Note is issued with the intention that, for
purposes of federal and state income tax, franchise tax and any other tax measured in whole or in
part by income, the Notes will be characterized as indebtedness secured by the Trust Estate. Each
Noteholder, by acceptance of a Note (and each Note Owner by acceptance of a beneficial interest in
a Note), agrees to treat the Notes for such purposes as indebtedness.

     This Note, or any interest therein, may not be transferred to an “employee benefit plan”
within the meaning of Section 3(3) of ERISA that is subject to ERISA, a “plan” described in Section
4975(e)(1) of the Code, any entity that is deemed to hold “plan assets” of any of the foregoing by
reason of an employee benefit plan’s or other plan’s investment in such entity, or any
governmental, foreign or church plan subject to applicable law that is substantially similar to the
fiduciary responsibility provisions of ERISA or Section 4975 of the Code, unless such transferee
represents, warrants and covenants that its purchase and holding of this Note, throughout the
period that it holds this Note is, and will be, covered by Department of Labor prohibited
transaction class exemption (“PTE”) 90-1; PTE 96-23; PTE 95-60; PTE 91-38; PTE 84-14 or another
applicable prohibited transaction exemption (or in the case of a governmental, foreign or church
plan, subject to law that is substantially similar to ERISA or Section 4975 of the Code, a similar
type of exemption or other applicable relief). By its acquisition of this Note in book-entry form
or any interest therein, each transferee will be deemed to have represented, warranted and
covenanted that it satisfies the foregoing requirements and the Indenture Trustee may relay
conclusively on the same for purposes hereof.

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

A-4-4

 

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

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

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

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

     This Note and the Indenture shall be construed in accordance with the laws of the State of New
York, without reference to its conflict of law provisions, and the obligations, rights and remedies
of the parties hereunder and thereunder shall be determined in accordance with such laws. No
reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or
impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of
and interest on this Note at the times, place and rate, and in the coin or currency herein
prescribed.

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

A-4-5

 

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

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date:	 	 	 	 	 	HYUNDAI AUTO RECEIVABLES TRUST 200[__]	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	[__________________], not in its individual	 	 
	 	 	 	 	 	 	 	 	capacity but solely as Owner Trustee under

the Trust Agreement,	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 
	 

	 	 	 	 	 	 	 	Authorized Signatory
	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date:	 	 	 	 	 	 	 	[__________________], not in its individual	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	capacity but solely as Indenture Trustee,	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Authorized Signatory	 	 

A-4-6

 

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee:                                          FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto:

 

(name and address of assignee)

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

	 	 	 	 	 	 	 
	Dated:

	 	 	 	*/	 	 
	 

	 	 

	 	 	 	 
	Signature Guaranteed:	 	 	 	 

 

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

A-4-7

 

 

EXHIBIT B

[FORM OF CLASS B NOTE]

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

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

	 	 	 	 	 	 	 
	REGISTERED	 	 	 	 
	CUSIP 
	NO.
	 	 	 	$[___](1) No. R-	 
	 	 
	 	 	 	 	 
	 	 
	 	HYUNDAI AUTO RECEIVABLES TRUST 200[___]	 	 	 
	 	 	 	 	 	 	 
	 	 
	 	[___]%
ASSET BACKED NOTE, CLASS B	 	 	 

          HYUNDAI AUTO RECEIVABLES TRUST 200[___], a statutory business trust organized and existing
under the laws of the State of Delaware (herein referred to as the “Issuer”), for value received,
hereby promises to pay to Cede & Co., or registered assigns, the principal sum of
[                                        ]DOLLARS, payable on each Payment Date in an amount equal to the aggregate
amount, if any, payable from the Note Distribution Account in respect of principal on the Class B
Notes pursuant to Section 3.01 of the Indenture dated as of [                    ], 200[___] (the
“Indenture”), between the Issuer and [                    ], a [                    ] banking association, as Indenture
Trustee (the “Indenture Trustee”); provided, however, that the entire unpaid principal amount of
this Note shall be due and payable on the earlier of [                    ], 200[___] (the “Class B Maturity
Date”) and the Redemption Date, if any, pursuant to Article X of the Indenture. Capitalized terms
used but not defined herein are defined in the Indenture, which also contains rules as to
construction that shall be applicable herein.

 

			
	(1)	 	Denominations of $1,000 and integral multiples of $1,000 in excess thereof.

B-1

 

 

          The Issuer will pay interest on this Note at the rate per annum set forth above, on each
Payment Date until the principal of this Note is paid or made available for payment, on the
principal amount of this Note outstanding on the preceding Payment Date (after giving effect to all
payments of principal made on the preceding Payment Date), subject to certain limitations contained
in the last sentence of Section 3.01 of the Indenture. Interest on this Note will accrue for each
Payment Date from and including the [___] day of the month preceding the month of such Payment
Date (or, in the case of the first Payment Date, from the Closing Date) to but excluding the [___]
day of the month of such Payment Date. Interest will be computed on the basis of a 360-day year
consisting of twelve 30-day months. Such principal of and interest on this Note shall be paid in
the manner specified herein.

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

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

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

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

          Principal of the Class B Notes will be payable on each Payment Date in an amount described on
the face hereof. “Payment Date” means the [___] day of each month, or, if any such date is not a
Business Day, the next succeeding Business Day, commencing [___], 200[___].

          As described above, the entire unpaid principal amount of this Note shall be due and payable
on the earlier of the Class B Maturity Date and the Redemption Date, if any, pursuant to Article X
of the Indenture. Notwithstanding the foregoing, if an Event of Default occurs, the Indenture
Trustee or the Holders of Notes representing not less than a majority of the Outstanding Amount of
the Controlling Class of Notes may declare the Notes to be immediately due and payable in the
manner provided in Section 5.02 of the Indenture. All principal payments on the Class B Notes shall
be made pro rata to the Class B Noteholders entitled thereto.

          Payments of interest on this Note due and payable on each Payment Date, together with the
installment of principal, if any, to the extent not in full payment of this Note,

B-2

 

 

shall be made by check mailed to the Person whose name appears as the Registered Holder of this
Note (or one or more Predecessor Notes) on the Note Register as of the close of business on each
Record Date, except that with respect to Notes registered on the Record Date in the name of the
nominee of the Clearing Agency (initially, such nominee to be Cede & Co.), payments will be made by
wire transfer in immediately available funds to the account designated by such nominee. Such checks
shall be mailed to the Person entitled thereto at the address of such Person as it appears on the
Note Register as of the applicable Record Date without requiring that this Note be submitted for
notation of payment. Any reduction in the principal amount of this Note (or any one or more
Predecessor Notes) effected by any payments made on any Payment Date shall be binding upon all
future Holders of this Note and of any Note issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof, whether or not noted hereon. If funds are expected to be
available, as provided in the Indenture, for payment in full of the then remaining unpaid principal
amount of this Note on a Payment Date, then the Indenture Trustee, in the name of and on behalf of
the Issuer, will notify the Person who was the Registered Holder hereof as of the Record Date
preceding such Payment Date by notice mailed or transmitted by facsimile prior to such Payment
Date, and the amount then due and payable shall be payable only upon presentation and surrender of
this Note at the Indenture Trustee’s principal Corporate Trust Office or at the office of the
Indenture Trustee’s agent appointed for such purposes located in The City of New York.

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

          As provided in the Indenture and subject to the limitations set forth therein and on the face
hereof, the transfer of this Note may be registered on the Note Register upon surrender of this
Note for registration of transfer at the office or agency designated by the Issuer pursuant to the
Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney
duly authorized in writing, with such signature guaranteed by an “eligible guarantor institution”
meeting the requirements of the Note Registrar, which requirements include membership or
participation in the Securities Transfer Agent’s Medallion Program (“STAMP”) or such other
“signature guarantee program” as may be determined by the Note Registrar in addition to, or in
substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended,
and thereupon one or more new Notes of authorized denominations and in the same aggregate principal
amount will be issued to the designated transferee or transferees. No service charge will be
charged for any registration of transfer or exchange of this Note, but the transferor may be
required to pay a sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any such registration of transfer or exchange subject to certain exceptions set
forth in the Indenture.

          Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture
Trustee on the Notes or under the Indenture or any certificate or other writing delivered in
connection therewith, against (i) the Seller, the Servicer, the Indenture Trustee or the Owner
Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Issuer,
including the Seller or (iii) any partner, owner, beneficiary, agent, officer, director or employee
of the Seller, the Servicer, Indenture Trustee or the Owner Trustee in its individual capacity, any

B-3

 

 

holder of a beneficial interest in the Issuer, the Seller, the Servicer, the Owner Trustee or the
Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee in
its individual capacity, except as any such Person may have expressly agreed and except that any
such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law,
for any unpaid consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity. Each Noteholder or Note Owner, by its acceptance of a
Note or, in the case of a Note Owner, a beneficial interest in a Note, agrees that, except as
expressly provided in the Basic Documents, in the case of an Event of Default under the Indenture,
the Noteholder shall have no claim against any of the foregoing for any deficiency, loss or claim
therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to,
and enforcement against, the assets of the Issuer for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Note.

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

          The Issuer has entered into the Indenture and this Note is issued with the intention that, for
purposes of federal and state income tax, franchise tax and any other tax measured in whole or in
part by income, the Notes will be characterized as indebtedness secured by the Trust Estate. Each
Noteholder, by acceptance of a Note (and each Note Owner by acceptance of a beneficial interest in
a Note), agrees to treat the Notes for such purposes as indebtedness.

          This Note, or any interest therein, may not be transferred to an “employee benefit plan”
within the meaning of Section 3(3) of ERISA that is subject to ERISA, a “plan” described in Section
4975(e)(1) of the Code, any entity that is deemed to hold “plan assets” of any of the foregoing by
reason of an employee benefit plan’s or other plan’s investment in such entity, or any
governmental, foreign or church plan subject to applicable law that is substantially similar to the
fiduciary responsibility provisions of ERISA or Section 4975 of the Code, unless such transferee
represents, warrants and covenants that its purchase and holding of this Note, throughout the
period that it holds this Note is, and will be, covered by Department of Labor prohibited
transaction class exemption (“PTE”) 90-1; PTE 96-23; PTE 95-60; PTE 91-38; PTE 84-14 or another
applicable prohibited transaction exemption (or in the case of a governmental, foreign or church
plan, subject to law that is substantially similar to ERISA or Section 4975 of the Code, a similar
type of exemption or other applicable relief). By its acquisition of this Note in book-entry form
or any interest therein, each transferee will be deemed to have represented, warranted and
covenanted that it satisfies the foregoing requirements and the Indenture Trustee may relay
conclusively on the same for purposes hereof.

          Prior to the due presentment for registration of transfer of this Note, the Issuer, the
Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in
whose name this Note (as of the day of determination or as of such other date as may be specified
in the Indenture) is registered as the owner hereof for all purposes, whether or not this

B-4

 

 

Note be overdue, and none of the Issuer, the Indenture Trustee or any such agent shall be affected
by notice to the contrary.

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

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

          The Notes are issuable only in registered form in denominations as provided in the Indenture,
subject to certain limitations therein set forth. This Note and the Indenture shall be construed in
accordance with the laws of the State of New York, without reference to its conflict of law
provisions, and the obligations, rights and remedies of the parties hereunder and thereunder shall
be determined in accordance with such laws.

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

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

B-5

 

 

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

	 	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	HYUNDAI AUTO RECEIVABLES TRUST 200[___]	 	 
	 

	 	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	[                                        ], not in its	 	 
	 

	 	 	 	 	 	 	 	individual capacity but solely as	 	 
	 

	 	 	 	 	 	 	 	Owner Trustee under the Trust	 	 
	 

	 	 	 	 	 	 	 	Agreement,	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

Authorized Signatory
	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

	 	 	 	 	 	 	 	 	 	 	 
	Date:	 	 	 	 	 	[                                        ], not in its	 	 
	 

	 	 

	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	individual capacity but solely as	 	 
	 	 	 	 	 	 	Indenture Trustee,	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

Authorized Signatory
	 	 

B-6

 

 

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee:                     FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto:

 

(name and address of assignee)

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

	 	 	 	 	 	 	 
	Dated:

	 	 	 	*/	 	 
	 

	 	 

	 	 	 	 
	Signature Guaranteed:	 	 	 	 

 

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

B-7

 

 

EXHIBIT C

[FORM OF CLASS C NOTE]

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

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

	 	 	 	 	 	 	 
	REGISTERED	 	 	 	 
	CUSIP 
	NO.
	 	 	 	$[___](1) No. R-	 
	 	 
	 	 	 	 	 
	 	 
	 	HYUNDAI AUTO RECEIVABLES TRUST 200[___]	 	 	 
	 	 	 	 	 	 	 
	 	 
	 	[___]%
ASSET BACKED NOTE, CLASS C	 	 	 

     HYUNDAI AUTO RECEIVABLES TRUST 200[___], a statutory business trust organized and existing
under the laws of the State of Delaware (herein referred to as the “Issuer”), for value received,
hereby promises to pay to Cede & Co., or registered assigns, the principal sum of
[                                        ] DOLLARS, payable on each Payment Date in an amount equal to the aggregate
amount, if any, payable from the Note Distribution Account in respect of principal on the Class C
Notes pursuant to Section 3.01 of the Indenture dated as of [                    ], 200[___] (the
“Indenture”), between the Issuer and [                    ], a [                    ] banking association, as
Indenture Trustee (the “Indenture Trustee”); provided, however, that the entire unpaid principal
amount of this Note shall be due and payable on the earlier of [                    ], 200[___] (the “Class C
Maturity Date”) and the Redemption Date, if any, pursuant to Article X of the Indenture.
Capitalized terms used but not defined herein are defined in the Indenture, which also contains
rules as to construction that shall be applicable herein.

     The Issuer will pay interest on this Note at the rate per annum set forth above, on each
Payment Date until the principal of this Note is paid or made available for payment, on the

 

			
	(1)	 	Denominations of $1,000 and integral multiples of $1,000 in excess thereof.

C-1

 

 

principal amount of this Note outstanding on the preceding Payment Date (after giving effect to all
payments of principal made on the preceding Payment Date), subject to certain limitations contained
in the last sentence of Section 3.01 of the Indenture. Interest on this Note will accrue for each
Payment Date from and including the [___] day of the month preceding the month of such Payment
Date (or, in the case of the first Payment Date, from the Closing Date) to but excluding the [___]
day of the month of such Payment Date. Interest will be computed on the basis of a 360-day year
consisting of twelve 30-day months. Such principal of and interest on this Note shall be paid in
the manner specified herein.

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

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

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

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

          Principal of the Class C Notes will be payable on each Payment Date in an amount described on
the face hereof. “Payment Date” means the [___] day of each month, or, if any such date is not a
Business Day, the next succeeding Business Day, commencing [___], 200[___].

          As described above, the entire unpaid principal amount of this Note shall be due and payable
on the earlier of the Class C Maturity Date and the Redemption Date, if any, pursuant to Article X
of the Indenture. Notwithstanding the foregoing, if an Event of Default occurs, the Indenture
Trustee or the Holders of Notes representing not less than a majority of the Outstanding Amount of
the Controlling Class of Notes may declare the Notes to be immediately due and payable in the
manner provided in Section 5.02 of the Indenture. All principal payments on the Class C Notes shall
be made pro rata to the Class C Noteholders entitled thereto.

          Payments of interest on this Note due and payable on each Payment Date, together with the
installment of principal, if any, to the extent not in full payment of this Note, shall be made by
check mailed to the Person whose name appears as the Registered Holder of this Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on

C-2

 

 

each Record Date, except that with respect to Notes registered on the Record Date in the name of
the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.), payments will be
made by wire transfer in immediately available funds to the account designated by such nominee.
Such checks shall be mailed to the Person entitled thereto at the address of such Person as it
appears on the Note Register as of the applicable Record Date without requiring that this Note be
submitted for notation of payment. Any reduction in the principal amount of this Note (or any one
or more Predecessor Notes) effected by any payments made on any Payment Date shall be binding upon
all future Holders of this Note and of any Note issued upon the registration of transfer hereof or
in exchange hereof or in lieu hereof, whether or not noted hereon. If funds are expected to be
available, as provided in the Indenture, for payment in full of the then remaining unpaid principal
amount of this Note on a Payment Date, then the Indenture Trustee, in the name of and on behalf of
the Issuer, will notify the Person who was the Registered Holder hereof as of the Record Date
preceding such Payment Date by notice mailed or transmitted by facsimile prior to such Payment
Date, and the amount then due and payable shall be payable only upon presentation and surrender of
this Note at the Indenture Trustee’s principal Corporate Trust Office or at the office of the
Indenture Trustee’s agent appointed for such purposes located in The City of New York.

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

          As provided in the Indenture and subject to the limitations set forth therein and on the face
hereof, the transfer of this Note may be registered on the Note Register upon surrender of this
Note for registration of transfer at the office or agency designated by the Issuer pursuant to the
Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney
duly authorized in writing, with such signature guaranteed by an “eligible guarantor institution”
meeting the requirements of the Note Registrar, which requirements include membership or
participation in the Securities Transfer Agent’s Medallion Program (“STAMP”) or such other
“signature guarantee program” as may be determined by the Note Registrar in addition to, or in
substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended,
and thereupon one or more new Notes of authorized denominations and in the same aggregate principal
amount will be issued to the designated transferee or transferees. No service charge will be
charged for any registration of transfer or exchange of this Note, but the transferor may be
required to pay a sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any such registration of transfer or exchange subject to certain exceptions set
forth in the Indenture.

          Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture
Trustee on the Notes or under the Indenture or any certificate or other writing delivered in
connection therewith, against (i) the Seller, the Servicer, the Indenture Trustee or the Owner
Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Issuer,
including the Seller or (iii) any partner, owner, beneficiary, agent, officer, director or employee
of the Seller, the Servicer, Indenture Trustee or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Seller, the Servicer, the Owner Trustee or the
Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee in

C-3

 

 

its individual capacity, except as any such Person may have expressly agreed and except that any
such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law,
for any unpaid consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity. Each Noteholder or Note Owner, by its acceptance of a
Note or, in the case of a Note Owner, a beneficial interest in a Note, agrees that, except as
expressly provided in the Basic Documents, in the case of an Event of Default under the Indenture,
the Noteholder shall have no claim against any of the foregoing for any deficiency, loss or claim
therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to,
and enforcement against, the assets of the Issuer for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Note.

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

          The Issuer has entered into the Indenture and this Note is issued with the intention that, for
purposes of federal and state income tax, franchise tax and any other tax measured in whole or in
part by income, the Notes will be characterized as indebtedness secured by the Trust Estate. Each
Noteholder, by acceptance of a Note (and each Note Owner by acceptance of a beneficial interest in
a Note), agrees to treat the Notes for such purposes as indebtedness.

          This Note, or any interest therein, may not be transferred to an “employee benefit plan”
within the meaning of Section 3(3) of ERISA that is subject to ERISA, a “plan” described in Section
4975(e)(1) of the Code, any entity that is deemed to hold “plan assets” of any of the foregoing by
reason of an employee benefit plan’s or other plan’s investment in such entity, or any
governmental, foreign or church plan subject to applicable law that is substantially similar to the
fiduciary responsibility provisions of ERISA or Section 4975 of the Code, unless such transferee
represents, warrants and covenants that its purchase and holding of this Note, throughout the
period that it holds this Note is, and will be, covered by Department of Labor prohibited
transaction class exemption (“PTE”) 90-1; PTE 96-23; PTE 95-60; PTE 91-38; PTE 84-14 or another
applicable prohibited transaction exemption (or in the case of a governmental, foreign or church
plan subject to law that is substantially similar to ERISA or Section 4975 of the Code, a similar
type of exemption or other applicable relief). By its acquisition of this Note in book-entry form
or any interest therein, each transferee will be deemed to have represented, warranted and
covenanted that it satisfies the foregoing requirements and the Indenture Trustee may relay
conclusively on the same for purposes hereof.

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

C - 4

 

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

          The term “Issuer” as used in this Note includes any successor to the Issuer under the
Indenture. The Notes are issuable only in registered form in denominations as provided in the Indenture,
subject to certain limitations therein set forth.

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

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

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

C - 5

 

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

	 	 	 	 	 	 	 	 	 	 	 
	Date:	 	 	 	 	 	HYUNDAI AUTO RECEIVABLES TRUST 200[__]
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	[                                        ], not in its	 	 
	 

	 	 	 	 	 	 	 	individual capacity but solely as	 	 
	 

	 	 	 	 	 	 	 	Owner Trustee under the Trust	 	 
	 

	 	 	 	 	 	 	 	Agreement,	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Authorized Signatory	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

	 	 	 	 	 	 	 	 	 	 	 
	Date:	 	 	 	 	 	[______________________], not in its
	 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	individual capacity but solely as
	 	 	 	 	 	 	Indenture Trustee,
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Authorized Signatory	 	 

C - 6

 

ASSIGNMENT

     Social Security or taxpayer I.D. or other identifying number of assignee:                                          FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto:

 

(name and address of assignee)

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

Dated:                                        */

Signature Guaranteed:

 

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

C - 7

 

EXHIBIT D

[FORM OF CLASS D NOTE]

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

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

	 	 	 	 	 	 	 
	REGISTERED	 	 	 	 
	CUSIP 
	NO.
	 	 	 	$[___](1) No. R-	 
	 	 
	 	 	 	 	 
	 	 
	 	HYUNDAI AUTO RECEIVABLES TRUST 200[___]	 	 	 
	 	 	 	 	 	 	 
	 	 
	 	[___]%
ASSET BACKED NOTE, CLASS D	 	 	 

          HYUNDAI AUTO RECEIVABLES TRUST 200[___], a statutory business trust organized and existing under the laws of the State of Delaware (herein referred to as the “Issuer”), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of [                    ] DOLLARS, payable on each Payment Date in an amount equal to the aggregate amount, if any, payable from the Note Distribution Account in respect of principal on the Class D Notes pursuant to Section 3.01 of the Indenture dated as of [                    ], 200[___] (the “Indenture”), between the Issuer and [                    ], a [                    ] banking association, as Indenture Trustee (the “Indenture Trustee”); provided, however, that the entire unpaid principal amount of this Note shall be due and payable on the earlier of [                    ], 200[___] (the “Class D Maturity Date”) and the Redemption Date, if any, pursuant to Article X of the Indenture. Capitalized terms used but not defined herein are defined in the Indenture, which also contains rules as to construction that shall be applicable herein.

 

			
	(1)	 	Denominations of $1,000 and integral multiples of $1,000 in excess thereof.

D - 1

 

          The Issuer will pay interest on this Note at the rate per annum set forth above, on each Payment Date until the principal of this Note is paid or made available for payment, on the principal amount of this Note outstanding on the preceding Payment Date (after giving effect to all payments of principal made on the preceding Payment Date), subject to certain limitations contained in the last sentence of Section 3.01 of the Indenture. Interest on this Note will accrue for each Payment Date from and including the [___] day of the month preceding the month of such Payment Date (or, in the case of the first Payment Date, from the Closing Date) to but excluding the [___] day of the month of such Payment Date. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months. Such principal of and interest on this Note shall be paid in the manner specified herein.

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

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

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

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

          Principal of the Class D Notes will be payable on each Payment Date in an amount described on the face hereof. “Payment Date” means the [___] day of each month, or, if any such date is not a Business Day, the next succeeding Business Day, commencing [                    ], 200[___].

          As described above, the entire unpaid principal amount of this Note shall be due and payable on the earlier of the Class D Maturity Date and the Redemption Date, if any, pursuant to Article X of the Indenture. Notwithstanding the foregoing, if an Event of Default occurs, the Indenture Trustee or the Holders of Notes representing not less than a majority of the Outstanding Amount of the Controlling Class of Notes may declare the Notes to be immediately due and payable in the manner provided in Section 5.02 of the Indenture. All principal payments on the Class D Notes shall be made pro rata to the Class D Noteholders entitled thereto.

          Payments of interest on this Note due and payable on each Payment Date, together with the installment of principal, if any, to the extent not in full payment of this Note,

D - 2

 

shall be made by check mailed to the Person whose name appears as the Registered Holder of this Note (or one or more Predecessor Notes) on the Note Register as of the close of business on each Record Date, except that with respect to Notes registered on the Record Date in the name of the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in immediately available funds to the account designated by such nominee. Such checks shall be mailed to the Person entitled thereto at the address of such Person as it appears on the Note Register as of the applicable Record Date without requiring that this Note be submitted for notation of payment. Any reduction in the principal amount of this Note (or any one or more Predecessor Notes) effected by any payments made on any Payment Date shall be binding upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. If funds are expected to be available, as provided in the Indenture, for payment in full of the then remaining unpaid principal amount of this Note on a Payment Date, then the Indenture Trustee, in the name of and on behalf of the Issuer, will notify the Person who was the Registered Holder hereof as of the Record Date preceding such Payment Date by notice mailed or transmitted by facsimile prior to such Payment Date, and the amount then due and payable shall be payable only upon presentation and surrender of this Note at the Indenture Trustee’s principal Corporate Trust Office or at the office of the Indenture Trustee’s agent appointed for such purposes located in The City of New York.

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

          As provided in the Indenture and subject to the limitations set forth therein and on the face hereof, the transfer of this Note may be registered on the Note Register upon surrender of this Note for registration of transfer at the office or agency designated by the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, with such signature guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, which requirements include membership or participation in the Securities Transfer Agent’s Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Note Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended, and thereupon one or more new Notes of authorized denominations and in the same aggregate principal amount will be issued to the designated transferee or transferees. No service charge will be charged for any registration of transfer or exchange of this Note, but the transferor may be required to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such registration of transfer or exchange subject to certain exceptions set forth in the Indenture.

          Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note, covenants and agrees that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under the Indenture or any certificate or other writing delivered in connection therewith, against (i) the Seller, the Servicer, the Indenture Trustee or the Owner Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Issuer, including the Seller or (iii) any partner, owner, beneficiary, agent, officer, director or employee of the Seller, the Servicer, Indenture Trustee or the Owner Trustee in its individual capacity, any

D - 3

 

holder of a beneficial interest in the Issuer, the Seller, the Servicer, the Owner Trustee or the Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee in its individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity. Each Noteholder or Note Owner, by its acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note, agrees that, except as expressly provided in the Basic Documents, in the case of an Event of Default under the Indenture, the Noteholder shall have no claim against any of the foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuer for any and all liabilities, obligations and undertakings contained in the Indenture or in this Note.

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

          The Issuer has entered into the Indenture and this Note is issued with the intention that, for purposes of federal and state income tax, franchise tax and any other tax measured in whole or in part by income, the Notes will be characterized as indebtedness secured by the Trust Estate. Each Noteholder, by acceptance of a Note (and each Note Owner by acceptance of a beneficial interest in a Note), agrees to treat the Notes for such purposes as indebtedness.

          This Note, or any interest therein, may not be transferred to an “employee benefit plan” within the meaning of Section 3(3) of ERISA that is subject to ERISA, a “plan” described in Section 4975(e)(1) of the Code, any entity that is deemed to hold “plan assets” of any of the foregoing by reason of an employee benefit plan’s or other plan’s investment in such entity, or any governmental, foreign or church plan subject to applicable law that is substantially similar to the fiduciary responsibility provisions of ERISA or Section 4975 of the Code, unless such transferee represents, warrants and covenants that its purchase and holding of this Note, throughout the period that it holds this Note is, and will be, covered by Department of Labor prohibited transaction class exemption (“PTE”) 90-1; PTE 96-23; PTE 95-60; PTE 91-38; PTE 84-14 or another applicable prohibited transaction exemption (or in the case of a governmental, foreign or church plan, subject to law that is substantially similar to ERISA or Section 4975 of the Code, a similar type of exemption or other applicable relief). By its acquisition of this Note in book-entry form or any interest therein, each transferee will be deemed to have represented, warranted and covenanted that it satisfies the foregoing requirements and the Indenture Trustee may relay conclusively on the same for purposes hereof.

          Prior to the due presentment for registration of transfer of this Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in whose name this Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this

D - 4

 

Note be overdue, and none of the Issuer, the Indenture Trustee or any such agent shall be affected by notice to the contrary.

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

          The term “Issuer” as used in this Note includes any successor to the Issuer under the Indenture. The Notes are issuable only in registered form in denominations as provided in the Indenture, subject to certain limitations therein set forth.

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

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

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

D - 5

 

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

	 	 	 	 	 	 	 	 	 	 	 
	Date:	 	 	 	 	 	HYUNDAI AUTO RECEIVABLES TRUST 200[__]
	 

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

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Authorized Signatory	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

	 	 	 	 	 	 	 	 	 	 	 
	Date:	 	 	 	 	 	[                                        ], not in its
	 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	individual capacity but solely as
	 	 	 	 	 	 	Indenture Trustee,
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Authorized Signatory	 	 

D - 6

 

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee:                                          FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto:

 

(name and address of assignee)

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

Dated:                                        */

Signature Guaranteed:

 

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

D - 7

 

EXHIBIT E

FORM OF NOTE DEPOSITORY AGREEMENT

(Letter of Representations)exv10w1

 

EXHIBIT 10.1

 

 

FORM OF

SALE AND SERVICING AGREEMENT

among

HYUNDAI AUTO RECEIVABLES TRUST 200[__],

Issuer,

HYUNDAI ABS FUNDING CORPORATION,

Depositor,

HYUNDAI MOTOR FINANCE COMPANY,

Seller and Servicer,

and

[_____________________________________],

Indenture Trustee

Dated as of [____________], 200[__]

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I.
	 	 	 	 
	DEFINITIONS
	 	 	 	 
	 
	 	 	 	 
	Section 1.01 Definitions
	 	 	1	 
	Section 1.02 Other Definitional Provisions
	 	 	16	 
	 
	 	 	 	 
	ARTICLE II.
	 	 	 	 
	CONVEYANCE OF RECEIVABLES
	 	 	 	 
	 
	 	 	 	 
	Section 2.01 Conveyance of Receivables
	 	 	17	 
	 
	 	 	 	 
	ARTICLE III.
	 	 	 	 
	THE RECEIVABLES
	 	 	 	 
	 
	 	 	 	 
	Section 3.01 Representations and Warranties of the Seller
	 	 	18	 
	Section 3.02 Representations and Warranties of the Depositor
	 	 	19	 
	Section 3.03 Repurchase Upon Breach
	 	 	19	 
	 
	 	 	 	 
	 ARTICLE IV.
	 	 	 	 
	ADMINISTRATION AND SERVICING OF RECEIVABLES
	 	 	 	 
	 
	 	 	 	 
	Section 4.01 Duties of Servicer
	 	 	20	 
	Section 4.02 Collection of Receivable Payments; Modifications of
Receivables
	 	 	21	 
	Section 4.03 Realization upon Receivables
	 	 	21	 
	Section 4.04 Physical Damage Insurance
	 	 	22	 
	Section 4.05 Maintenance of Security Interests in Financed Vehicles
	 	 	22	 
	Section 4.06 Covenants of Servicer
	 	 	22	 
	Section 4.07 Purchase of Receivables Upon Breach
	 	 	23	 
	Section 4.08 Servicing Fee
	 	 	23	 
	Section 4.09 Servicer’s Certificate
	 	 	23	 
	Section 4.10 Annual Statement as to Compliance, Notice of Servicer
Termination Event
	 	 	24	 
	Section 4.11 [Reserved]
	 	 	24	 
	Section 4.12 Access to Certain Documentation and Information Regarding
Receivables
	 	 	24	 
	Section 4.13 Term of Servicer
	 	 	24	 
	Section 4.14 Annual Independent Accountants’ Report
	 	 	24	 
	Section 4.15 Reports to the Commission
	 	 	25	 
	Section 4.16 Compensation of Indenture Trustee
	 	 	25	 
	 
	 	 	 	 
	ARTICLE V.
	 	 	 	 
	DISTRIBUTIONS; STATEMENTS TO SECURITYHOLDERS
	 	 	 	 
	 
	 	 	 	 
	Section 5.01 Post Office Box
	 	 	26	 
	Section 5.02 Accounts
	 	 	26	 
	Section 5.03 Application of Collections
	 	 	27	 
	Section 5.04 Purchase Amounts
	 	 	28	 

 i 

 

 

	 	 	 	 	 
	Section 5.05 Distributions
	 	 	28	 
	Section 5.06 Reserve Account
	 	 	30	 
	Section 5.07 Statements to Securityholders
	 	 	30	 
	Section 5.08 Advances by the Servicer
	 	 	32	 
	 
	 	 	 	 
	ARTICLE VI.
	 	 	 	 
	THE DEPOSITOR
	 	 	 	 
	 
	 	 	 	 
	Section 6.01 Representations of Depositor
	 	 	32	 
	Section 6.02 Corporate Existence
	 	 	33	 
	Section 6.03 Liability of Depositor; Indemnities
	 	 	34	 
	Section 6.04 Merger or Consolidation of, or Assumption of the
Obligations of, Depositor
	 	 	34	 
	Section 6.05 Amendment of Depositor’s Organizational Documents
	 	 	34	 
	 
	 	 	 	 
	ARTICLE VII.
	 	 	 	 
	THE SERVICER
	 	 	 	 
	 
	 	 	 	 
	Section 7.01 Representations of Servicer
	 	 	34	 
	Section 7.02 Indemnities of Servicer
	 	 	35	 
	Section 7.03 Merger or Consolidation of, or Assumption of the
Obligations of, Servicer
	 	 	36	 
	Section 7.04 Limitation on Liability of Servicer and Others
	 	 	37	 
	Section 7.05 Appointment of Subservicer
	 	 	37	 
	Section 7.06 Servicer Not to Resign
	 	 	37	 
	 
	 	 	 	 
	ARTICLE VIII.
	 	 	 	 
	DEFAULT
	 	 	 	 
	 
	 	 	 	 
	Section 8.01 Servicer Termination Events
	 	 	38	 
	Section 8.02 Consequences of a Servicer Termination Event
	 	 	38	 
	Section 8.03 Appointment of Successor Servicer
	 	 	39	 
	Section 8.04 Notification to Securityholders
	 	 	40	 
	Section 8.05 Waiver of Past Defaults
	 	 	40	 
	 
	 	 	 	 
	ARTICLE IX.
	 	 	 	 
	TERMINATION
	 	 	 	 
	 
	 	 	 	 
	Section 9.01 Optional Purchase of All Receivables
	 	 	40	 
	 
	 	 	 	 
	ARTICLE X.
	 	 	 	 
	MISCELLANEOUS
	 	 	 	 
	 
	 	 	 	 
	Section 10.01 Amendment
	 	 	40	 
	Section 10.02 Protection of Title to Trust
	 	 	41	 
	Section 10.03 Notices
	 	 	43	 
	Section 10.04 Assignment by the Depositor or the Servicer
	 	 	43	 
	Section 10.05 Limitations on Rights of Others
	 	 	43	 
	Section 10.06 Severability
	 	 	43	 

 

 

	 	 	 	 	 
	Section 10.07 Counterparts
	 	 	44	 
	Section 10.08 Headings
	 	 	44	 
	Section 10.09 GOVERNING LAW
	 	 	44	 
	Section 10.10 Assignment by Issuer
	 	 	44	 
	Section 10.11 Nonpetition Covenants
	 	 	44	 
	Section 10.12 Limitation of Liability of Owner Trustee and Indenture Trustee
	 	 	44	 

Exhibit A Representations and Warranties of Hyundai Motor Finance Company Under Section 3.02 of the Receivables Purchase Agreement

Exhibit B Form of Record Date Statement

Exhibit C Form of Servicer’s Certificate

Exhibit D Extension Policy

Schedule A Schedule of Receivables

Schedule B Required Yield Supplement Overcollateralization Amount

 

 

     This SALE AND SERVICING AGREEMENT, dated as of [______], 200[___], among HYUNDAI AUTO
RECEIVABLES TRUST 200[______], a Delaware statutory business trust (the “Issuer”), HYUNDAI ABS FUNDING
CORPORATION, a Delaware corporation (the “Depositor”), HYUNDAI MOTOR FINANCE COMPANY, a California
corporation, as servicer (in such capacity, the “Servicer”) and as seller (in such capacity, the
“Seller”), and [______], a [______] banking association, as indenture trustee
(the “Indenture Trustee”).

     WHEREAS, the Issuer desires to purchase a portfolio of receivables arising in connection with
automobile retail installment sale contracts acquired by the Seller in the ordinary course of
business and sold by the Seller to the Depositor;

     WHEREAS, the Depositor is willing to sell such receivables to the Issuer; and

     WHEREAS, the Servicer is willing to service such receivables.

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

ARTICLE I.

DEFINITIONS

     Section 1.01 Definitions. Whenever used in this Agreement, the following words and phrases,
unless the context otherwise requires, shall have the following meanings:

     “Administration Agreement” means the Owner Trust Administration Agreement, dated as of
[______], 200[___], among Hyundai Auto Receivables Trust 200[___], Hyundai Motor Finance
Company, and [______], as amended, supplemented, amended and restated or otherwise
modified from time to time.

     “Adjusted Pool Balance” means, with respect to any Payment Date, the Pool Balance as of the
end of the previous Collection Period less the Required Yield Supplement Overcollateralization
Amount with respect to such Payment Date.

     “Advance” means, as to any Payment Date, an advance made by the Servicer on such Payment Date
pursuant to Section 5.08 in respect of the aggregate of all Scheduled Payments of interest which
were due during the related Collection Period that remained unpaid at the end of such Collection
Period.

     “Agreement” means this Sale and Servicing Agreement, as amended, supplemented, amended and
restated or otherwise modified from time to time.

     “Amount Financed” means with respect to a Receivable, the amount advanced under the Receivable
toward the purchase price of the Financed Vehicle and any related costs.

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     “Annual Percentage Rate” or “APR” of a Receivable means the annual rate of finance charges
stated in the related Contract.

     “Available Amounts” means, with respect to any Payment Date, the sum of the following amounts
(without duplication) with respect to the related Collection Period: (i) all Collections on
Receivables, (ii) the Purchased Amount of each Receivable that becomes a Purchased Receivable,
(iii) Advances and (iv) Recoveries.

     “Available Amounts Shortfall” means, with respect to any Payment Date, the positive
difference, if any, of the Total Required Payment for such Payment Date minus the Available Amounts
for such Payment Date.

     “Basic Documents” means the Trust Agreement, the Securities Account Control Agreement, the
Indenture, this Agreement, the Receivables Purchase Agreement, the Administration Agreement, the
Note Depository Agreement and other documents and certificates delivered in connection therewith.

     “Business Day” means any day other than a Saturday, a Sunday or a day on which a commercial
banking institution in the states of California, Delaware or New York are authorized or obligated
by law or executive order to remain closed.

     “Certificate” means a certificate evidencing the beneficial interest of a Certificateholder in
the Trust.

     “Certificateholders” has the meaning assigned to such term in the Trust Agreement.

     “Class” means any one of the classes of Notes.

     “Class A Noteholders” means the Class A-1 Noteholders, the Class A-2 Noteholders, Class A-3
Noteholders and the Class A-4 Noteholders.

     “Class A Notes” means the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the
Class A-4 Notes.

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

     “Class A-1 Notes” means the [___]% Asset Backed Notes, Class A-1, substantially in the form
of Exhibit A-1 to the Indenture.

     “Class A-1 Rate” means [___]% per annum, computed on the basis of an actual/360-day year.

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

     “Class A-2 Notes” means the [___]% Asset Backed Notes, Class A-2, substantially in the form
of Exhibit A-2 to the Indenture.

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     “Class A-2 Rate” means [___]% per annum, computed on the basis of a 360-day year consisting
of twelve 30-day months.

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

     “Class A-3 Notes” means the [___]% Asset Backed Notes, Class A-3, substantially in the form
of Exhibit A-3 to the Indenture.

     “Class A-3 Rate” means [___]% per annum, computed on the basis of a 360-day year consisting
of twelve 30-day months.

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

     “Class A-4 Notes” means the [___]% Asset Backed Notes, Class A-4, substantially in the form
of Exhibit A-4 to the Indenture.

     “Class A-4 Rate” means [___]% per annum, computed on the basis of a 360-day year consisting
of twelve 30-day months.

     “Class B Maturity Date” means [______], 20[___].

     “Class B Noteholder” means the Person in whose name a Class B Note is registered in the Note
Register.

     “Class B Notes” means the [___]% Asset Backed Notes, Class B, substantially in the form of
Exhibit B to the Indenture.

     “Class B Rate” means [___]% per annum, computed on the basis of a 360-day year consisting of
twelve 30-day months.

     “Class C Maturity Date” means [______], 20[___].

     “Class C Noteholder” means the Person in whose name a Class C Note is registered in the Note
Register.

     “Class C Notes” means the [___]% Asset Backed Notes, Class C, substantially in the form of
Exhibit C to the Indenture.

     “Class C Rate” means [___]% per annum, computed on the basis of a 360-day year consisting of
twelve 30-day months.

     “Class D Maturity Date” means [______], 20[___].

     “Class D Noteholder” means the Person in whose name a Class D Note is registered in the Note
Register.

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     “Class D Notes” means the [___]% Asset Backed Notes, Class D, substantially in the form of
Exhibit D to the Indenture.

     “Class D Rate” means [___]% per annum, computed on the basis of a 360-day year consisting of
twelve 30-day months.

     “Closing Date” means [______], 200[___].

     “Collateral” has the meaning specified in the Granting Clause of the Indenture.

     “Collection” means, with respect to any Receivable and to the extent received by the Servicer
after the Cutoff Date, (i) any monthly payment by or on behalf of the Obligor thereunder, (ii) full
or partial prepayment of that Receivable, (iii) all Liquidation Proceeds and (iv) any other amounts
received by the Servicer which, in accordance with the customary servicing practices, would be
applied to the payment of accrued interest or to reduce the Principal Balance of that Receivable;
provided, however, that the term “Collection” in no event will include (1) any amounts in respect
of any Receivable purchased by the Servicer, the Seller or the Depositor on a prior Payment Date,
(2) any late fees, extension fees, non-sufficient funds charges and any and all other
administrative fees or similar charges allowed by applicable law with respect to any Receivable and
payable to the Servicer.

     “Collection Account” means the account designated as such, established and maintained pursuant
to Section 5.02(b)(i).

     “Collection Period” means, with respect to any Payment Date other than the first Payment Date,
the calendar month preceding such Payment Date. The Collection Period with respect to the first
Payment Date will be the period after the Cutoff Date to and including [______], 200[___].

     “Commission”
means the Securities and Exchange Commission.

     “Contract” means a motor vehicle retail installment sale contract.

     “Controlling Class” means with respect to any Notes that are Outstanding, the Class A Notes
(voting together as a single class) so long as the Class A Notes are Outstanding, and thereafter
the Class B Notes so long as any Class B Notes are Outstanding, and thereafter the Class C Notes so
long as any Class C Notes are Outstanding and thereafter the Class D Notes so long as any Class D
Notes are Outstanding, excluding in each case, Notes held by the Depositor, the Servicer or their
affiliates.

     “Conveyed
Assets” has the meaning provided in Section 2.01.

     “Corporate Trust Administration Department” has the meaning set forth in the Trust Agreement.

     “Corporate Trust Office” has the meaning set forth in the Indenture.

4

 

     “Credit and Collection Policy” means the credit and collection practices, policies and
procedures of HMFC as in effect as of the Closing Date and any subsequent amendments thereto unless
the context indicates otherwise.

     “Cutoff Date” means the close of business on [______], 200[___].

     “Dealer” means the dealer who sold a Financed Vehicle and who originated the related
Receivable and assigned it to HMFC pursuant to a Dealer Agreement.

     “Dealer Agreement” means an agreement between HMFC and a Dealer pursuant to which such Dealer
sells Contracts to HMFC.

     “Defaulted Receivables” means any Receivable (a) on which any installment is unpaid more than
sixty (60) days past its original due date (as defined in the Credit and Collection Policy) or (b)
the Obligor of which has suffered an Insolvency Event.

     “Deliver” or “Delivered”: when used with respect to Trust Account Property means when the
relevant steps specified below are accomplished with respect to such Trust Account Property:

     (i) if such Trust Account Property is an instrument or a certificated security (each as
defined in the UCC), by (a) delivering such instrument or security certificate to the Eligible
Institution then maintaining the applicable Eligible Account either registered in the name of such
Eligible Institution, or indorsed, by an effective endorsement, to the Eligible Institution or in
blank (provided, that no endorsement shall be required for certificated securities in bearer form),
(b) causing such Eligible Institution to maintain (on behalf of the Indenture Trustee) continuous
possession of such instrument or security certificate, (c) causing the Eligible Institution to
credit such instrument or certificated security to the appropriate Eligible Account (d) causing the
Eligible Institution to agree to treat all such instruments and certificated securities as
“financial assets” (as defined in the UCC) and (e) causing the Eligible Institution to agree
pursuant to a Control Agreement that it will comply with “entitlement orders” (as defined in the
UCC) originated by the Indenture Trustee with respect to each security entitlement (as defined in
the UCC) relating to such instruments and certificated securities without further consent by the
Depositor, the Issuer or any other Person;

     (ii) if such Trust Account Property is a security entitlement (as defined in the UCC), by (a)
causing the Eligible Institution then maintaining the applicable Eligible Account to become the
entitlement holder of such security entitlement, (b) causing the Eligible Institution to credit
such security entitlement to the appropriate Eligible Account thereby creating a securities
entitlement with respect to the financial asset underlying such securities entitlement and (c)
causing the Eligible Institution to agree pursuant to a Control Agreement that it will comply with
“entitlement orders” (as defined in the UCC) originated by the Indenture Trustee with respect to
each security entitlement (as defined in the UCC) without further consent by the Depositor, Issuer
or any other Person;

     (iii) if such Trust Account Property is an uncertificated security (as defined in the UCC), by
(a) causing the Eligible Institution then maintaining the applicable Eligible Account to become the
registered owner of such uncertificated security, (b) causing such registration to

5

 

remain effective and (c) causing the Eligible Institution to credit such uncertificated security to
the appropriate Eligible Account thereby creating a securities entitlement with respect to the
uncertificated security and (c) causing the Eligible Institution to agree pursuant to a Control
Agreement that it will comply with “entitlement orders” (as defined in the UCC) originated by the
Indenture Trustee with respect to each security entitlement (as defined in the UCC) without further
consent by the Depositor, Issuer or any other Person;

     (iv) if such Trust Account Property consists of deposit accounts (as defined in the UCC) by
either (X) causing the Indenture Trustee to be the customer with respect to such deposit accounts
or (Y) causing the bank maintaining such deposit account to enter into a Control Agreement pursuant
to which it agrees to comply with all instructions issued by the Indenture Trustee without further
consent by the Depositor, Issuer or any other Person;

     (v) in the case of any general intangibles, by causing an effective financing statement naming
the Issuer as debtor and the Indenture Trustee as secured party and covering such general
intangibles to be filed in the location (within the meaning of Section 9-307 of the UCC) of the
Issuer; and

     (vi) in the case of any Trust Account Property not covered above or as an additional method of
delivery for any of the foregoing, by delivering to the Indenture Trustee a legal opinion of
counsel reasonably satisfactory to the Indenture Trustee specifying another method of delivery that
will result in the Indenture Trustee having a valid and perfected security interest therein and by
delivery in compliance with the method specified in such legal opinion.

     “Depositor” means Hyundai ABS Funding Corporation, a Delaware corporation, and its successors
in interest.

     “Determination Date” means, with respect to each Payment Date, the earlier of the tenth
calendar day of the month in which such Payment Date occurs (or if such tenth day is not a Business
Day, the next succeeding Business Day).

     “Eligible Account” means a segregated securities account with an Eligible Institution.

     “Eligible Institution” means (a) the corporate trust department of the Indenture Trustee or
the Owner Trustee or (b) the corporate trust department of a depository institution organized under
the laws of the United States, any State, the District of Columbia or the Commonwealth of Puerto
Rico, that (i) has either (A) a long-term unsecured debt rating from Moody’s of at least “Baa3”,
Standard & Poor’s of at least “BBB-”, or Fitch of at least “BBB-” (or a lower rating as any Rating
Agency shall approve in writing) or (B) a short-term unsecured debt rating or certificate of
deposit rating in the highest investment category granted thereby and (ii) the deposits of which
are insured by the FDIC.

     “Eligible Investments” means book-entry securities, negotiable instruments or securities
represented by instruments in bearer or registered form and that evidence:

     (a) direct obligations of, and obligations fully guaranteed as to the
full and timely payment by, the United States of America;

6

 

     (b) demand deposits, time deposits or certificates of deposit of any
depository institution (including any affiliate of the Depositor, the
Servicer, the Indenture Trustee or the Owner Trustee) or trust company
incorporated under the laws of the United States of America or any state
thereof or the District of Columbia (or any domestic branch of a foreign
bank) and subject to supervision and examination by Federal or state
banking or depository institution authorities (including depository
receipts issued by any such institution or trust company as custodian with
respect to any obligation referred to in the first bullet point above or a
portion of such obligation for the benefit of the holders of such
depository receipts); provided that at the time of the investment or
contractual commitment to invest therein (which shall be deemed to be made
again each time funds are reinvested following each Payment Date), the
commercial paper or other short-term senior unsecured debt obligations
(other than such obligations the rating of which is based on the credit of
a person other than such depository institution or trust company) of such
depository institution or trust company shall have a credit rating from
each Rating Agency in the highest investment category granted thereby;

     (c) commercial paper (including commercial paper of any affiliate of
Depositor, the Servicer, the Indenture Trustee or the Owner Trustee)
having, at the time of the investment or contractual commitment to invest
therein, a rating from each Rating Agency in the highest investment
category granted thereby;

     (d) investments in money market funds (including funds for which the
Depositor, the Servicer, the Indenture Trustee or the Owner Trustee or any
of their respective affiliates is investment manager or advisor) having a
rating from each of Moody’s and Standard & Poor’s in the highest investment
category granted thereby;

     (e) bankers’ acceptances issued by any depository institution or trust
company referred to in clause (b) above;

     (f) repurchase obligations with respect to any security that is a
direct obligation of, or fully guaranteed by, the United States of America
or any agency or instrumentality thereof the obligations of which are
backed by the full faith and credit of the United States of America, in
either case entered into with a depository institution or trust company
(acting as principal) described in clause (b);

     (g) any other investment with respect to which the Issuer, the
Indenture Trustee or the Servicer has received written notification from
each Rating Agency that the acquisition of such investment will satisfy the
Rating Agency Condition.

     “Eligible Servicer” means Hyundai Motor Finance Company or any other Person that at the time
of its appointment as Servicer (i) is servicing a portfolio of motor vehicle retail installment
sale contracts or motor vehicle installment loans, (ii) is legally qualified and has the capacity
to service the Receivables, (iii) has demonstrated the ability professionally and competently to
service a portfolio of motor vehicle retail installment sale contracts or motor vehicle installment
loans similar to the Receivables with reasonable skill and care and (iv) has a minimum net worth of
$100,000,000.

7

 

     “Extension Policy” shall mean the policies of the Servicer with respect to granting extensions
on the Contracts as set forth on Exhibit D hereto.

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

     “Fee Letter” means the letter regarding fees dated [______], 200[___] between the
Depositor, the Owner Trustee and HMFC.

     “Financed Vehicle” means a new or used automobile, light-duty truck, van or minivan, together
with all accessions thereto, securing an Obligor’s indebtedness under the related Contract.

     “First Priority Principal Distribution Amount” means, with respect to any Payment Date, an
amount, not less than zero, equal to the result of (i) the aggregate outstanding principal amount
of the Class A Notes as of the preceding Payment Date (after giving effect to any principal
payments made on the Class A Notes on that preceding Payment Date), minus (ii) the Adjusted Pool
Balance at the end of the Collection Period preceding that Payment Date; provided, however, that
the First Priority Principal Distribution Amount shall not exceed the sum of the aggregate
outstanding principal amount of all of the Notes on that Payment Date (after giving effect to any
principal payments made on the Notes on that preceding Payment Date); and provided further, that
the First Priority Principal Distribution Amount on and after the Stated Maturity Date of a class
of Class A Notes shall not be less than the amount that is necessary to reduce the outstanding
principal amount of such class of the Class A Notes and all earlier maturing classes of Class A
Notes to zero.

     “Fitch” means Fitch, Inc., and its successors.

     “HMFC” means Hyundai Motor Finance Company, a California corporation, and its successors.

     “Indenture” means the Indenture, dated as of [______], 200[___], between the Issuer and
the Indenture Trustee, as amended, supplemented, amended and restated or otherwise modified from
time to time.

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

     “Initial Class A-1 Note Balance” means $[______].

     “Initial Class A-2 Note Balance” means $[______].

     “Initial Class A-3 Note Balance” means $[______].

     “Initial Class A-4 Note Balance” means $[______].

     “Initial Class B Note Balance” means $[______].

     “Initial Class C Note Balance” means $[______].

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     “Initial Class D Note Balance” means $[____________].

     “Initial Pool Balance” means, an amount equal to the aggregate Principal Balance of the
Receivables as of the Cutoff Date.

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

     “Interest Distribution Account” means, the account designated as such, established and
maintained pursuant to Section 5.02(b)(iv).

     “Interest Period” means, with respect to the Class A-1 Notes, the period from and including
the most recent Payment Date on which interest has been paid (or, in the case of the first Payment
Date, the Closing Date) to but excluding the next succeeding Payment Date and, with respect to the
Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes, the Class B Notes, the Class C Notes and
the Class D Notes, the period from and including the [______] day of the calendar month (or, in
the case of the first Payment Date, from and including the Closing Date) to but excluding the
[______] day of the next calendar month.

     “Investment Earnings” means, with respect to any Payment Date, any investment earnings (net of
losses and investment expenses) on amounts on deposit in a Trust Account.

     “Issuer” means Hyundai Auto Receivables Trust 200[___].

     “Lien” means a security interest, lien, charge, pledge, equity or encumbrance of any kind,
other than tax liens, mechanics’ liens and any liens that attach to the respective Receivable by
operation of law as a result of any act or omission by the related Obligor.

     “Liquidated Receivable” means a Receivable with respect to which the earlier of the following
shall have occurred: (i) the related Financed Vehicle has been repossessed and liquidated, (ii) the
related Financed Vehicle has been repossessed for 90 days or more and has not yet been liquidated,
(iii) the end of the Collection Period in which the Receivable becomes more than 120 days past due,
or (iv) the Servicer has determined in accordance with the Credit and Collections Policy that
eventual payment in full of the Amount Financed is unlikely.

9

 

     “Liquidation Proceeds” means, with respect to any Liquidated Receivable, all proceeds of the
liquidation of such Liquidated Receivable, net of the sum of any out-of-pocket expenses of the
Servicer reasonably allocated to the repossession, transport, reconditioning and liquidation and
any amounts required by law to be remitted or allocated to the account of the Obligor on such
Liquidated Receivable.

     “Local Remittance Account” has the meaning provided in Section 5.02(a).

     “Monthly Remittance Condition” means (i)(A) the short-term debt of the Servicer is rated in
the highest rating category, or is otherwise acceptable to, each Rating Agency and (B) no Servicer
Termination Event has occurred or (ii)(A) the Servicer obtains a letter of credit, surety bond or
insurance policy under which demands for payment may be made to secure the timely remittance of
Collections and Available Amounts to the Collection Account and (B) the Indenture Trustee and the
Owner Trustee are provided with confirmation from each Rating Agency to the effect that the use of
such alternative remittance schedule will not result in the qualification, reduction or withdrawal
of its then-current rating on any class of Notes.

     “Moody’s” means Moody’s Investors Service, Inc., and its successors.

     “Note Balance” means, as of any date of determination, an amount equal to (a) the sum of (i)
the Initial Class A-1 Note Balance, (ii) the Initial Class A-2 Note Balance, (iii) the Initial
Class A-3 Note Balance, (iv) the Initial Class A-4 Note Balance, (v) the Initial Class B Note
Balance, (vi) the Initial Class C Note Balance and (vii) the Initial Class D Note Balance less (b)
all amounts distributed to Noteholders on or prior to such date and allocable to principal thereon.

     “Note Distribution Account” means the account designated as such, established and maintained
pursuant to Section 5.02(b)(ii).

     “Note Pool Factor” means, with respect to each Class of Notes as of the close of business on
the last day of a Collection Period, a seven-digit decimal figure equal to the Outstanding Amount
of such Class of Notes (after giving effect to any reductions thereof to be made on the immediately
following Payment Date) divided by the original Outstanding Amount of such Class of Notes. The Note
Pool Factor will be 1.0000000 as of the Closing Date; thereafter, the Note Pool Factor will decline
to reflect reductions in the Outstanding Amount of such Class of Notes.

     “Noteholders” shall mean the Class A-1 Noteholders, the Class A-2 Noteholders, the Class A-3
Noteholders, the Class A-4 Noteholders, the Class B Noteholders, the Class C Noteholders or the
Class D Noteholders.

     “Obligor” means a person who obtained installment credit for the purchase of a Financed
Vehicle the terms of which are evidenced by a Contract, and any other person obligated to make
payments thereunder.

     “Officers’ Certificate” means a certificate signed by (a) the chairman of the board, any vice
president, the controller or any assistant controller and (b) the president, a treasurer, assistant
treasurer, secretary or assistant secretary of the Depositor or the Servicer, as appropriate.

10

 

     “Opinion of Counsel” means one or more written opinions of counsel, who may be an employee of
or counsel to the Depositor or the Servicer, which counsel shall be acceptable to the Indenture
Trustee, the Owner Trustee or the Rating Agencies, as applicable, and which shall be addressed to
the Owner Trustee and the Indenture Trustee.

     “Outstanding Amount” means, as of any date of determination, the aggregate principal amount of
a Class of Notes outstanding as of such date of determination.

     “Owner Trustee” means [______], acting not in its individual capacity but solely as
owner trustee under the Trust Agreement.

     “Payment Date” means, with respect to each Collection Period, the [______] day of the
following month or, if such day is not a Business Day, the immediately following Business Day,
commencing on [______], 200[___].

     “Physical Property” has the meaning assigned to such term in the definition of “Delivery”
above.

     “Pool Balance” means, with respect to any Payment Date, an amount equal to the aggregate
Principal Balance of the Receivables at the end of the related Collection Period, after giving
effect to all payments of principal received from Obligors and Purchase Amounts to be remitted by
the Servicer for such Collection Period and reduction to zero of the aggregate outstanding
Principal Balance of all Receivables that became Liquidated Receivables during such Collection
Period.

     “Post Office Box” means any post office boxes maintained by Citibank N.A., to which payments
on receivables owned or serviced by HMFC are or will be sent.

     “Principal Balance” means, with respect to any Receivable and a Determination Date, the Amount
Financed minus an amount equal to the sum, as of the close of business on the last day of the
related Collection Period, of that portion of all amounts received on or prior to such day with
respect to such Receivable and allocable to principal using the Simple Interest Method (with
respect to Simple Interest Receivables).

     “Principal Distribution Account” means that account designated as such established and
maintained pursuant to Section 5.02(b)(iv).

     “Purchase Amount” means, with respect to any Receivable that became a Purchased Receivable,
the unpaid principal balance owed by the Obligor thereon plus interest on such amount at the
applicable APR to the last day of the Collection Period of repurchase.

     “Purchased Receivable” means a Receivable purchased as of the close of business on the last
day of a Collection Period by or on behalf of the Servicer pursuant to Section 4.07 or by or on
behalf of the Seller pursuant to the Receivables Purchase Agreement.

     “Rating Agency” means Fitch, Moody’s or Standard & Poor’s, as the context may require. If none
of Fitch, Moody’s, Standard & Poor’s or a successor thereto remains in existence, “Rating Agency”
shall mean any nationally recognized statistical rating organization

11

 

or other comparable Person designated by the Depositor and, written notice of which designation
shall be given to the Owner Trustee, the Indenture Trustee and the Servicer.

     “Rating Agency Condition” means, with respect to any action, that each Rating Agency shall
have been given 10 days’ (or such shorter period as shall be acceptable to each Rating Agency)
prior notice thereof and that each Rating Agency shall not have notified the Issuer or the
Indenture Trustee in writing that such action will result in a reduction, withdrawal or down-grade
of the then-current rating of each class of Notes.

     “Realized Losses” means, with respect to any Receivable that becomes a Liquidated Receivable,
the excess of the Principal Balance thereof over the portion of related Liquidation Proceeds
allocable to principal.

     “Receivable” means any Contract listed on Schedule A (which Schedule may be in the form of
microfiche).

     “Receivable Files” means the following documents with respect to each Financed Vehicle:

     (i) the fully executed original of each Receivable (together with any
agreements modifying each such Receivable, including any extension
agreement);

     (ii) the original credit application, or a copy thereof, fully
executed by each Obligor thereon;

     (iii) the original certificate of title or such other documents
evidencing the security interest of the Seller in the related Financed
Vehicle; and

     (iv) any and all other documents that the Servicer shall have kept on
file in accordance with its customary procedures relating to Receivables,
Obligors or Financed Vehicles.

     “Receivables Purchase Agreement” means the Receivables Purchase Agreement dated as of
[______], 200[___], between the Seller and the Depositor, as amended, supplemented, amended
and restated or otherwise modified from time to time.

     “Record Date” means, as to any Payment Date, the day immediately preceding such Payment Date.

     “Recoveries” means, with respect to any Receivable that becomes a Liquidated Receivable,
monies collected in respect thereof (other than Liquidation Proceeds), from whatever source, net of
the sum of any amounts expended by the Servicer for the account of the Obligor and any amounts
required by law to be remitted or allocated to the account of the Obligor.

     “Regular Principal Distribution Amount” means, with respect to any Payment Date, an amount no
less than zero equal to the excess, if any, of (i) the aggregate outstanding principal amount of
the Notes immediately preceding such Payment Date over (ii)(a) the Adjusted Pool Balance as of the
last day of the related Collection Period minus (b) the Target

12

 

Overcollateralization Amount with respect to such Payment Date; provided, however, that the Regular
Principal Distribution Amount shall not exceed the sum of the aggregate outstanding principal
amount of all of the Notes on such Payment Date (after giving effect to any principal payments made
on the Notes on such Payment Date in respect of the First Priority Principal Distribution Amount,
the Second Priority Principal Distribution Amount, and the Third Priority Principal Distribution
Amount, if any); and provided further, that the Regular Principal Distribution Amount on or after
the Class D Stated Maturity Date shall not be less than the amount that is necessary to reduce the
outstanding principal amount of the Class D Notes to zero.

     “Required Yield Supplement Overcollateralization Amount” means with respect to any Payment
Date, the dollar amount set forth next to such Payment Date on Schedule B hereto.

     “Reserve Account” means the account designated as such, established by the Issuer and
maintained by the Indenture Trustee pursuant to Section 5.02(b)(iii).

     “Reserve Account Deposit” means $[_________].

     “Reserve Account Required Amount” means with respect to any Payment Date, an amount equal to
[___]% of the Adjusted Pool Balance as of the Cutoff Date; provided, however, that in no event
shall the Reserve Account Required Amount on any Payment Date be more than the aggregate
outstanding principal amount of the Notes on such Payment Date (after giving effect to the
allocation of principal payments on such Payment Date).

     “Reserve Account Withdrawal Amount” means, with respect to each Payment Date, the lesser of
(x) the Available Amounts Shortfall with respect to such Payment Date and (y) and the amount on
deposit in the Reserve Account on such Payment Date.

     “Responsible Officer” means the chairman of the board, the president, any executive vice
president, any vice president, the treasurer, any assistant treasurer, the secretary, or any
assistant secretary of the Servicer.

     “Scheduled Payment” means, with respect to each Receivable, the scheduled monthly payment
amount set forth in the related Contract and required to be paid by the Obligor during each
Collection Period.

     “Second Priority Principal Distribution Amount” means, with respect to any Payment Date, an
amount not less than zero equal to (i) the sum of the aggregate outstanding principal amount of the
Class A Notes and the Class B Notes as of the preceding Payment Date (after giving effect to any
principal payments made on the Class A Notes and the Class B Notes on that preceding Payment Date),
minus (ii) the Adjusted Pool Balance at the end of the Collection Period preceding that Payment
Date, minus (iii) the First Priority Principal Distribution Amount; provided, however, that the
Second Priority Principal Distribution Amount shall not exceed the sum of the aggregate outstanding
principal amount of all of the Notes on that Payment Date (after giving effect to any principal
payments made on the Notes on that preceding Payment Date); and provided further, that the Second
Priority Principal Distribution Amount on and after the Class B Maturity Date shall not be less
than the amount that is necessary to reduce the outstanding principal amount of the Class B Notes
to zero.

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     “Securities” means the Notes and the Certificates.

     “Securities Account Control Agreement” means the Securities Account Control Agreement dated as
of [______], 200[___] between the Trust, the Indenture Trustee and the Securities
Intermediary, as amended, supplemented, amended and restated or otherwise modified from time to
time.

     “Securities Intermediary” means [                                        ], in its capacity as the securities
intermediary in the Securities Account Control Agreement.

     “Securityholders” means the Noteholders and/or the Certificateholders, as the context may
require.

     “Seller” means HMFC and its successors in interest as seller of the Receivables to the
Depositor pursuant to the Receivables Purchase Agreement.

     “Servicer” means HMFC, as the servicer of the Receivables, and each successor to HMFC (in the
same capacity) pursuant to Section 7.03 or 8.03.

     “Servicer Termination Event” has the meaning set forth in Section 8.01.

     “Servicer’s Certificate” means an Officers’ Certificate of the Servicer delivered pursuant to
Section 4.09, substantially in the form of Exhibit C.

     “Servicing Fee” means an amount equal to the product of the Servicing Fee Rate and the Pool
Balance as of the first day of the related Collection Period.

     “Servicing Fee Rate” means [___]% per annum.

     “Simple Interest Method” means the method of allocating the monthly payments received with
respect to a Receivable to interest in an amount equal to the product of (i) the applicable APR,
(ii) the period of time (expressed as a fraction of a year, based on the actual number of days in
the calendar month and 365 days in the calendar year) elapsed since the preceding payment was made
under such Receivable and (iii) the outstanding principal amount of such Receivable, and allocating
the remainder of each such monthly payment to principal.

     “Simple Interest Receivable” means any Receivable under which the portion of a payment
allocable to interest and the portion allocable to principal is determined in accordance with the
Simple Interest Method.

     “Standard & Poor’s” means Standard & Poor’s, a division of The McGraw-Hill Companies, Inc.,
and its successors.

     “Stated Maturity Date” means, for each class of Notes, the respective date set forth opposite
such class of Notes in the table below or, if such date is not a Business Day, the next succeeding
Business Day:

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	Class	 	Stated Maturity Date
	 
	Class A-1 Notes
	 	[                    ], 200[            ]
	Class A-2 Notes
	 	[                    ], 200[            ]
	Class A-3 Notes
	 	[                    ], 200[            ]
	Class A-4 Notes
	 	[                    ], 20[            ]
	  Class B Notes
	 	[                    ], 20[            ]
	  Class C Notes
	 	[                    ], 20[            ]
	  Class D Notes
	 	[                    ], 20[            ]

     “Target Overcollateralization Amount” means, with respect to any Payment Date, the greater of
(a) [___]% of the Adjusted Pool Balance, minus amounts on deposit in the Reserve Account after
withdrawals from the Reserve Account but prior to deposits to the Reserve Account, in each case, on
such Payment Date and (b) [___]% of the Adjusted Pool Balance as of the Cut-off Date.
Notwithstanding the foregoing, the Target Overcollateralization Amount shall not exceed the
Adjusted Pool Balance on such Payment Date.

     “Third Priority Principal Distribution Amount” means, with respect to any Payment Date, an
amount not less than zero equal to (i) the sum of the aggregate outstanding principal amount of the
Class A Notes, the Class B Notes and the Class C Notes as of the preceding Payment Date (after
giving effect to any principal payments made on the Class A Notes, the Class B Notes and the Class
C Notes on that preceding Payment Date), minus (ii) the Adjusted Pool Balance at the end of the
Collection Period, minus (iii) the First Priority Principal Distribution Amount, minus (iv) the
Second Priority Principal Distribution Amount; provided, however, that the Third Priority Principal
Distribution Amount shall not exceed the sum of the aggregate outstanding principal amount of all
of the Notes on that Payment Date (after giving effect to any principal payments made on the Notes
on that preceding Payment Date); and provided further, that the Third Priority Principal
Distribution Amount on and after the Class C Maturity Date shall not be less than the amount that
is necessary to reduce the outstanding principal amount of the Class C Notes to zero.

     “Total Required Payment” means (a) with respect to any Payment Date prior to the occurrence of
an “Event of Default” under the Indenture which has resulted in the acceleration of the Notes, the
sum of (i) the Servicing Fee for the related Collection Period and all unpaid Servicing Fees from
prior Collection Periods, (ii) unreimbursed Advances, (iii) the accrued and unpaid interest on the
Notes, (iv) an amount equal to the change in the Adjusted Pool Balance during the related
Collection Period, and (v) on or after the Stated Maturity Date of any class of Notes, an amount
necessary to reduce the outstanding principal amount of such class of Notes to zero, and (b) with
respect to any Payment Date following the occurrence and during the continuation of an “Event of
Default” under the Indenture which has resulted in an acceleration

15

 

of the Notes, until the Payment Date on which the outstanding principal amount of all the Notes has
been paid in full, the sum of (i) the specified amounts payable to the Indenture Trustee, (ii) the
Servicing Fee for the related Collection Period and all unpaid Servicing Fees from prior Collection
Periods, (iii) unreimbursed Advances, (iv) the accrued and unpaid interest on the Notes and (v) the
amount necessary to reduce the outstanding principal amount of all the Notes to zero.

     “Trust” means the Issuer.

     “Trust Account Property” means the Trust Accounts, all amounts and investments held from time
to time in any Trust Account and all proceeds of the foregoing.

     “Trust Accounts” shall mean the Collection Account, the Note Distribution Account and the
Reserve Account.

     “Trust Agreement” means the Amended and Restated Trust Agreement, dated as of [                    ],
200[___], between the Depositor, the Administrator and the Owner Trustee, as amended, supplemented,
amended and restated or otherwise modified from time to time.

     “Trust Officer” means, in the case of the Indenture Trustee or any Officer within the
Corporate Trust Office of the Indenture Trustee, as the case may be, including any 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 and, with
respect to the Owner Trustee, any officer in the Corporate Trust Administration Department of the
Owner Trustee with direct responsibility for the administration of the Trust Agreement and the
other Basic Documents on behalf of the Owner Trustee.

     “UCC” means the Uniform Commercial Code, as in effect in the relevant jurisdiction.

     Section 1.02 Other Definitional Provisions.

          (a) Capitalized terms used herein that are not otherwise defined has the meanings ascribed
thereto in the Indenture or, if not defined therein, in the Trust Agreement.

          (b) All terms defined in this Agreement shall have the defined meanings when used in any
certificate or other document made or delivered pursuant hereto unless otherwise defined therein.

          (c) As used in this Agreement and in any certificate or other document made or delivered
pursuant hereto or thereto, accounting terms not defined in this Agreement or in any such
certificate or other document, and accounting terms partly defined in this Agreement or in any such
certificate or other document to the extent not defined, shall have the respective meanings given
to them under generally accepted accounting principles. To the extent that the definitions of
accounting terms in this Agreement or in any such certificate or other document are inconsistent
with the meanings of such terms under generally accepted accounting principles,

16

 

the definitions contained in this Agreement or in any such certificate or other document shall
control.

          (d) The words “hereof,” “herein,” “hereunder” and words of similar import when used in this
Agreement shall refer to this Agreement as a whole and not to any particular provision of this
Agreement; Article, Section, Schedule and Exhibit references contained in this Agreement are
references to Articles, Sections, Schedules and Exhibits in or to this Agreement unless otherwise
specified; “or” shall include “and/or”; and the term “including” shall mean “including without
limitation”.

          (e) The definitions contained in this Agreement are applicable to the singular as well as the
plural forms of such terms and to the masculine as well as to the feminine and neuter genders of
such terms.

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

ARTICLE II.

CONVEYANCE OF RECEIVABLES

     Section 2.01 Conveyance of Receivables.

     In consideration of the Issuer’s delivery to or upon the order of the Depositor of
$[                    ], the Certificates and such other amounts to be distributed to the Depositor on
the Closing Date, the Depositor does hereby sell, transfer, assign, set over and otherwise convey
to the Issuer, without recourse (subject to the obligations of the Depositor set forth herein), all
right, title and interest of the Depositor in and to:

          (i)
the Receivables and all moneys received thereon on or after the Cutoff Date;

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

          (iii) any Liquidation Proceeds and any other proceeds with
respect to the Receivables from claims on any physical damage, credit life
or disability insurance policies covering the Financed Vehicles or the
related Obligors, including any vendor’s single interest or other
collateral protection insurance policy;

          (iv) any property that shall have secured a Receivable and shall
have been acquired by or on behalf of the Depositor, the Servicer or the
Trust;

          (v) all documents and other items contained in the Receivable
Files;

17

 

          (vi) all of the Depositor’s rights (but not its obligations)
under the Receivables Purchase Agreement;

          (vii) all right, title and interest in the Trust Accounts and all
funds, securities or other assets credited from time to time to the Trust
Accounts and in all investments therein and proceeds thereof (including all
Investment Earnings thereon);

          (viii) any proceeds from any Receivable repurchased by a Dealer
pursuant to a Dealer Agreement; and

          (ix) the proceeds of any and all of the foregoing (collectively,
with the assets listed in clauses (i) through (viii) above, the “Conveyed

Assets”).

     It is the intention of the Depositor that the transfer and assignment contemplated by this
Agreement shall constitute a sale of the Conveyed Assets from the Depositor to the Trust and the
beneficial interest in and title to the Receivables and the related property shall not be part of
the Depositor’s estate in the event of the filing of a bankruptcy petition by or against the
Depositor under any bankruptcy law. In the event that, notwithstanding the intent of the Depositor,
the transfer and assignment contemplated hereby is held not to be a sale or is otherwise not
effective to sell the Conveyed Assets, this Agreement shall constitute a grant by the Depositor to
the Issuer of a security interest in all Conveyed Assets and all accounts, money, chattel paper,
securities, instruments, documents, deposit accounts, uncertificated securities, general
intangibles, contract rights, goods and other property consisting of, arising from or relating to
such Conveyed Assets, for the benefit of the Securityholders.

ARTICLE III.

THE RECEIVABLES

     Section 3.01 Representations and Warranties of the Seller.

          (a) The Seller has made each of the representations and warranties set forth in Exhibit A
hereto under the Receivables Purchase Agreement and has consented to the assignment by the
Depositor to the Issuer of the Depositor’s rights with respect thereto. Such representations and
warranties speak as of the execution and delivery of this Agreement and as of the Closing Date, but
shall survive the sale, transfer and assignment of the Receivables to the Issuer and the pledge of
such Receivables to the Indenture Trustee. Pursuant to Section 2.01 of this Agreement, the
Depositor has sold, assigned, transferred and conveyed to the Issuer, as part of the assets of the
Issuer, its rights under the Receivables Purchase Agreement, including the representations and
warranties of the Seller therein as set forth in Exhibit A, upon which representations and
warranties the Issuer relies in accepting the Receivables and delivering the Securities, together
with all rights of the Depositor with respect to any breach thereof, including the right to require
the Seller to repurchase Receivables in accordance with the Receivables Purchase Agreement. It is
understood and agreed that the representations and warranties referred to in this Section shall
survive the sale and delivery of the Receivables to the Issuer.

18

 

          (b) The Seller hereby agrees that the Issuer shall have the right to enforce any and all
rights under the Receivables Purchase Agreement assigned to the Issuer herein, including the right
to cause the Seller to repurchase any Receivable with respect to which it is in breach of any of
its representations and warranties set forth in Exhibit A, directly against the Seller as though
the Issuer were a party to the Receivables Purchase Agreement, and the Issuer shall not be
obligated to exercise any such rights indirectly through the Depositor.

          Section 3.02 Representations and Warranties of the Depositor. The Depositor makes the
following representations and warranties, on which the Issuer relies in accepting the Receivables
and delivering the Securities. Such representations and warranties speak as of the execution and
delivery of this Agreement and as of the Closing Date, but shall survive the sale, transfer and
assignment of the Receivables by the Depositor to the Issuer and the pledge thereof to the
Indenture Trustee pursuant to the Indenture:

          (a) Title. The Depositor shall convey to the Issuer all right, title and interest of the
Depositor in and to the Receivables.

          (b) All Filings Made. The Depositor has caused all filings (including UCC filings) to be made
in New York and Delaware with respect to the sale of the Receivables to the Issuer and the pledge
contemplated in the Basic Documents to the Indenture Trustee.

          (c) Liens. The Depositor has not taken any actions to create, incur or suffer to exist any
Lien on or restriction on transferability of any Receivable except for the Lien of the Indenture
and the restrictions on transferability imposed by this Agreement.

          Section 3.03 Repurchase Upon Breach. The Depositor, the Owner Trustee, the Indenture Trustee,
the Seller, and the Servicer shall inform the other parties to this Agreement promptly, in writing,
upon the discovery of any breach of the Seller’s representations and warranties made pursuant to
Section 3.01 of this Agreement or Section 3.02 of the Receivables Purchase Agreement, without
regard to any limitation set forth in such representation or warranty concerning the knowledge of
the Seller as to the facts stated therein. The occurrence of a breach of any of the Seller’s
representations and warranties contained in Section 3.01 of this Agreement or Section 3.02(b) of
the Receivables Purchase Agreement with respect to any Receivable shall constitute an event
obligating the Seller to repurchase such Receivables if the interests of the Depositor, the
Indenture Trustee, the Owner Trustee, the Issuer or the Securityholders are materially and
adversely affected by such breach (each, a “Repurchase Event”), at the Purchase Amount, from the
Depositor or from the Issuer, as applicable, unless any such breach shall have been cured by the
last day of the first Collection Period following the discovery or notice thereof by or to the
Seller or the Servicer. In consideration of the repurchase of any such Receivable, the Seller shall
remit the Purchase Amount to the Collection Account and notify in writing the Indenture Trustee of
such deposit, in the manner specified in Section 5.04. The sole remedy of the Issuer, the Indenture
Trustee, the Noteholders, or the Certificateholders with respect to a breach of representations and
warranties contained in Section 3.01 of this Agreement or Section 3.02(b) of the Receivables
Purchase Agreement shall be to require the Seller to repurchase the affected Receivables.

19

 

ARTICLE IV.

ADMINISTRATION AND SERVICING OF RECEIVABLES

     Section 4.01 Duties of Servicer. The Servicer, for the benefit of the Issuer and the Indenture
Trustee, shall manage, service, administer and make collections on the Receivables and perform the
other actions required of the Servicer under this Agreement. The Servicer shall service the
Receivables in accordance with its customary and usual procedures and consistent with the
procedures employed by institutions that service motor vehicle retail installment sale contracts.
The Servicer’s duties shall include the collection and posting of all payments, responding to
inquiries of Obligors, investigating delinquencies, sending payment statements to Obligors,
reporting any required tax information to Obligors, monitoring the Collateral, accounting for
collections, furnishing monthly and annual statements to the Owner Trustee and the Indenture
Trustee with respect to distributions and performing the other duties specified herein. The
Servicer also shall administer and enforce all rights of the holder of the Receivables under the
Receivables and the Dealer Agreements. To the extent consistent with the standards, policies and
procedures otherwise required hereby and the Credit and Collection Policy, the Servicer shall
follow its customary standards, policies and procedures and shall have full power and authority,
acting alone, to do any and all things in connection with the managing, servicing, administration
and collection of the Receivables that it may deem necessary or desirable. Without limiting the
generality of the foregoing, the Servicer is hereby authorized and empowered to execute and
deliver, on behalf of itself, the Issuer, the Owner Trustee, the Indenture Trustee, the
Certificateholders and the Noteholders, or any of them, any and all instruments of satisfaction or
cancellation, or of partial or full release or discharge, and all other comparable instruments with
respect to the Receivables and with respect to the Financed Vehicles; provided, however, that
notwithstanding the foregoing, the Servicer shall not, except pursuant to an order from a court of
competent jurisdiction or as required by applicable law, release an Obligor from payment of any
unpaid amount due under any Receivable, reduce the related APR or waive the right to collect the
unpaid balance of any Receivable from an Obligor. The Servicer is hereby authorized to commence, in
its own name or in the name of the Issuer, the Indenture Trustee, the Owner Trustee, the
Certificateholders or the Noteholders, a legal proceeding to enforce a Receivable pursuant to
Section 4.03 or to commence or participate in any other legal proceeding (including a bankruptcy
proceeding) relating to or involving a Receivable, an Obligor or a Financed Vehicle. If the
Servicer commences or participates in any such legal proceeding in its own name, the Indenture
Trustee or the Issuer shall thereupon be deemed to have automatically assigned the applicable
Receivable to the Servicer solely for purposes of commencing or participating in such proceeding as
a party or claimant, and the Servicer is authorized and empowered by the Indenture Trustee or the
Issuer to execute and deliver in the Indenture Trustee’s or the Issuer’s name any notices, demands,
claims, complaints, responses, affidavits or other documents or instruments in connection with any
such proceeding. If in any enforcement suit or legal proceeding it shall be held that the Servicer
may not enforce a Receivable on the ground that it shall not be a real party in interest or a
holder entitled to enforce such Receivable, the Owner Trustee shall, at the Servicer’s expense and
direction, take steps to enforce such Receivable, including bringing suit in its name or the name
of the Issuer, the Indenture Trustee, the Certificateholders or the Noteholders. The Owner Trustee
and the Indenture Trustee shall upon the written request of the Servicer furnish the Servicer with
any

20

 

powers of attorney and other documents reasonably necessary or appropriate to enable the Servicer
to carry out its servicing and administrative duties hereunder.

     Section 4.02 Collection of Receivable Payments; Modifications of Receivables.

          (a) Consistent with the standards, policies and procedures required by this Agreement, the
Servicer shall make reasonable efforts to collect all payments called for under the terms and
provisions of the Receivables as and when the same shall become due, and shall follow such
collection procedures as it follows with respect to all comparable motor vehicle receivables that
it services for itself or others and otherwise act with respect to the Receivables in such a manner
as will, in the reasonable judgment of the Servicer, maximize the amount to be received by the
Trust with respect thereto. The Servicer is authorized in its discretion to waive any prepayment
charge, late payment charge or any other similar fees that may be collected in the ordinary course
of servicing any Receivable.

          (b) The Servicer may grant payment extensions in accordance with its customary procedures if
the Servicer believes in good faith that such extension is necessary to avoid a default on such
Receivable, will maximize the amount to be received by the Trust with respect to such Receivable
and is otherwise in the best interests of the Trust; provided, that no such extension shall extend
the final payment date on any Receivable beyond the last day of the Collection Period ending three
months prior to the Class D Maturity Date. Anything herein to the contrary notwithstanding, the
Servicer shall grant payment extensions with respect to a Receivable only to the extent permissible
in its extension policy in effect from time to time, which policy in effect as of the date hereof
is attached hereto as Exhibit D. Generally, a Contract may be extended for at most one month per
extension and there may not be more than six extensions during the life of the Contract.

          (c) Upon any extension not in accordance with this Section, the Servicer shall be required to
purchase the related Receivable in accordance with Section 4.07.

     Section 4.03 Realization upon Receivables. Consistent with the standards, policies and
procedures required by this Agreement and the Credit and Collection Policy, the Servicer shall use
its best efforts to repossess or otherwise convert the ownership of and liquidate any Financed
Vehicle securing a Receivable with respect to which the Servicer shall have determined that
eventual payment in full is unlikely. The Servicer shall begin such repossession and conversion
procedures as soon as practicable after default on such Receivable; provided, however, that the
Servicer may elect not to repossess a Financed Vehicle within such time period if in its good faith
judgment it determines that the proceeds ultimately recoverable with respect to such Receivable
would be increased by forbearance. In repossessing or otherwise converting the ownership of a
Financed Vehicle and liquidating a Receivable, the Servicer is authorized to follow such customary
practices and procedures as it shall deem necessary or advisable, consistent with the standard of
care required by Section 4.01, which practices and procedures may include reasonable efforts to
realize upon any recourse to Dealers, the sale of the related Financed Vehicle at public or private
sale, the submission of claims under an insurance policy and other actions by the Servicer in order
to realize upon a Receivable; provided, however, that in any case in which the Financed Vehicle
shall have suffered damage, the Servicer shall not expend funds in connection with any repair or
towards the repossession of such Financed

21

 

Vehicle unless it shall determine in its reasonable judgment that such repair or repossession shall
increase the related Liquidation Proceeds by an amount materially greater than the expense for such
repair or repossession. The Servicer shall be entitled to recover all reasonable expenses incurred
by it in the course of repossessing and liquidating a Financed Vehicle into cash proceeds, but only
out of the cash proceeds of the sale of such Financed Vehicle, any deficiency obtained from the
related Obligor or any amounts received from recourse to the related Dealer.

     Section 4.04 Physical Damage Insurance. The Servicer shall, in accordance with its customary
servicing procedures, require each Obligor to obtain and maintain physical loss damage insurance
covering the related Financed Vehicle as of the execution of the related Receivable.

     Section 4.05 Maintenance of Security Interests in Financed Vehicles.

          (a) The Servicer shall, in accordance with its customary servicing procedures, take such steps
as are necessary to maintain perfection of the security interest created by each Receivable in the
related Financed Vehicle. The Servicer is hereby authorized to take such steps as are necessary to
re-perfect such security interest on behalf of the Issuer and the Indenture Trustee in the event of
the relocation of a Financed Vehicle, or for any other reason. In the event that the assignment of
a Receivable to the Issuer is insufficient, without a notation on the related Financed Vehicle’s
certificate of title, or without fulfilling any additional administrative requirements under the
laws of the state in which such Financed Vehicle is located, to perfect a security interest in the
related Financed Vehicle in favor of the Issuer, the Servicer hereby agrees that the designation of
HMFC as the secured party on the certificate of title is in its capacity as agent of the Issuer.

          (b) The Depositor, the Trust, the Indenture Trustee, and the Servicer hereby agree that, upon
a Servicer Termination Event, the Indenture Trustee may take or cause to be taken such actions as
may, in the opinion of counsel to the Indenture Trustee, be necessary to perfect or re-perfect the
security interests in the Financed Vehicles in the name of the Issuer, including by amending the
title documents of the Financed Vehicles. The Servicer hereby agrees to pay all expenses related to
such perfection or reperfection and to take all action necessary therefor.

     Section 4.06 Covenants of Servicer. By its execution and delivery of this Agreement, the
Servicer hereby covenants as follows (upon which covenants the Issuer, the Indenture Trustee and
the Owner Trustee rely in accepting the Receivables and delivering the applicable Securities):

          (a) Liens in Force. No Financed Vehicle securing a Receivable shall be released in whole or in
part from the security interest granted by such Receivable, except upon payment in full of such
Receivable or as otherwise contemplated herein;

          (b) No Impairment. The Servicer shall do nothing to impair the rights of the Trust in the
property of the Trust;

          (c) No Amendments. The Servicer shall not extend or otherwise amend the terms of any
Receivable, except in accordance with Section 4.02 and the Servicer shall not

22

 

amend or modify the Credit and Collection Policy if such amendment or modification may have a
material adverse effect on the interest of the Noteholders; and

          (d) Restrictions on Liens. The Servicer shall not (A) create, incur or suffer to exist, or
agree to create, incur or suffer to exist, or consent to or permit in the future (upon the
occurrence of a contingency or otherwise) the creation, incurrence or existence of any Lien on or
restriction on transferability of any Receivable except for the Lien of the Indenture and the
restrictions on transferability imposed by this Agreement or (B) file any UCC financing statements
in any jurisdiction that names HMFC, the Servicer or the Depositor as a debtor, and any Person
other than the Depositor, the Indenture Trustee or the Issuer as a secured party, or sign any
security agreement authorizing any secured party thereunder to file any such financing statement
with respect to the Receivables or the related property.

     Section 4.07 Purchase of Receivables Upon Breach. Upon discovery by any of the Servicer, the
Seller, the Depositor, the Owner Trustee, or the Indenture Trustee of a breach of any of the
covenants set forth in Sections 4.02, 4.05 or 4.06, the party discovering such breach shall give
prompt written notice to the other parties; provided, however, that the failure to give any such
notice shall not affect any obligation of the Servicer under this Section 4.07. On or before the
last day of the first Collection Period following its discovery or receipt of notice of the breach
of any covenant set forth in Sections 4.02, 4.05 or 4.06 that materially and adversely affects the
interests of the Issuer, the Indenture Trustee, the Owner Trustee, the Certificateholders or the
Noteholders in any Receivable, the Servicer shall, unless such breach shall have been cured in all
material respects by such date, purchase from the Issuer the Receivable affected by such breach. In
consideration of the purchase of any such Receivable, the Servicer shall remit the related Purchase
Amount into the Collection Account, with written notice to the Indenture Trustee of such deposit,
in the manner specified in Section 5.04. Subject to Section 7.02, it is understood and agreed that
the obligation of the Servicer to purchase any Receivable with respect to which such a breach has
occurred and is continuing shall, if such obligation is fulfilled, constitute the sole remedy
against the Servicer for such breach available to the Issuer, the Owner Trustee, the Indenture
Trustee, the Certificateholders or the Noteholders.

     Section 4.08 Servicing Fee. The Servicing Fee shall be payable to the Servicer on each Payment
Date. The Servicing Fee shall be calculated on the basis of a 360-day year comprised of twelve
30-day months. The Servicer shall be required to pay all expenses incurred by it in connection with
its activities under this Agreement (including taxes imposed on the Servicer and expenses incurred
in connection with distributions and reports made by the Servicer to the Owner Trustee and the
Indenture Trustee). The Servicer shall be required to pay all of the Indenture Trustee’s fees,
expenses, reimbursements and indemnifications.

     Section 4.09 Servicer’s Certificate. Not later than 2:00 p.m. (New York City time) on each
Determination Date, the Servicer shall deliver to the Owner Trustee, the Indenture Trustee, and the
Depositor, with a copy to each Rating Agency, a Servicer’s Certificate containing all information
necessary to make the distributions to be made on the related Payment Date pursuant to Section 5.05
for the related Collection Period and any other information the Indenture Trustee may reasonably
request and such Servicer’s Certificate shall be certified by a Responsible Officer of the Servicer
to the effect that the information provided is complete and no defaults have occurred. If any
defaults have occurred, such Servicer’s Certificate will provide an

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explanation of such defaults. Receivables to be purchased by the Servicer or to be repurchased by
the Seller and each Receivable that became a Liquidated Receivable shall be identified by the
Servicer by account number with respect to such Receivable (as specified in the applicable Schedule
of Receivables).

     Section 4.10 Annual Statement as to Compliance, Notice of Servicer Termination Event.

          (a) The Servicer shall deliver to the Owner Trustee, the Indenture Trustee, and each Rating
Agency, within 120 days after the end of the Servicer’s fiscal year (or, in the case of the first
such certificate, not later than April 30, 200[___]), an Officer’s Certificate signed by a
Responsible Officer of the Servicer, stating that (i) a review of the activities of the Servicer
during the preceding 12-month period (or such shorter period in the case of the first such
Officer’s Certificate) and of the performance of its obligations under this Agreement has been made
under such officer’s supervision and (ii) to such officer’s knowledge, based on such review, the
Servicer has fulfilled all its obligations under this Agreement throughout such period 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 Owner Trustee, the Indenture Trustee, and each Rating
Agency, promptly after having obtained knowledge thereof, but in no event later than two Business
Days thereafter, written notice in an Officer’s Certificate of any event that with the giving of
notice or lapse of time or both would become a Servicer Termination Event under Section 8.01.

     Section 4.11 [Reserved]

     Section 4.12 Access to Certain Documentation and Information Regarding Receivables. The
Servicer shall provide to representatives of the Owner Trustee, the Indenture Trustee, the
Certificateholders and the Noteholders reasonable access to the documentation regarding the
Receivables and the related Trust property. The Servicer will provide such access to any
Certificateholder and Noteholder only in such cases where the Certificateholder or Noteholder shall
be required by applicable statutes or regulations to review such documentation. In each case,
access shall be afforded without charge, but only upon reasonable request and during the normal
business hours at the offices of the Servicer. Nothing in this Section 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.

     Section 4.13 Term of Servicer. The Servicer hereby covenants and agrees to act as Servicer
under, and for the term of, this Agreement, subject to the provisions of Sections 7.03 and 7.06.

     Section 4.14 Annual Independent Accountants’ Report. The Servicer shall cause a firm of
independent certified public accountants, which may also render other services to the Servicer or
its Affiliates, to deliver to the Owner Trustee, the Indenture Trustee, and each Rating Agency,
within 120 days after the end of each fiscal year (or, in the case of the first such report, not
later

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than April 30, 200[___]), a report addressed to the Board of Directors of the Servicer, the Owner
Trustee, and the Indenture Trustee, to the effect that such firm has audited the books and records
of the Servicer and issued its report thereon and that (i) such audit was made in accordance with
generally accepted auditing standards and accordingly included such tests of the accounting records
and such other auditing procedures as such firm considered necessary in the circumstances and (ii)
the firm is independent of the Depositor and the Servicer within the meaning of the Code of
Professional Ethics of the American Institute of Certified Public Accountants.

     Section 4.15 Reports to the Commission. The Servicer shall, on behalf of the Issuer, execute
and cause to be filed with the Commission any periodic reports required to be filed with respect to
the issuance of the Notes under the provisions of the Securities Exchange Act of 1934, as amended,
and the rules and regulations of the Commission thereunder. The Seller shall, at its expense,
cooperate in any reasonable request made by the Servicer in connection with such filings.

     Section 4.16 Compensation of Indenture Trustee. The Servicer will:

          (a) pay the Indenture Trustee (and any separate trustee or co-trustee appointed pursuant to
Section 6.10 of the Indenture (a “Separate Trustee”)) from time to time reasonable compensation for
all services rendered by the Indenture Trustee or Separate Trustee, as the case may be, under the
Indenture (which compensation shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust);

          (b) except as otherwise expressly provided in the Indenture, reimburse the Indenture Trustee
or any Separate Trustee upon its request for all reasonable expenses, disbursements and advances
incurred or made by the Indenture Trustee or Separate Trustee, as the case may be, in accordance
with any provision of the Indenture (including the reasonable compensation, expenses and
disbursements of its agents and counsel), except any such expense, disbursement or advance as may
be attributable to its negligence or bad faith;

          (c) indemnify the Indenture Trustee and any Separate Trustee and their respective agents for,
and hold them harmless against, any losses, liability or expense incurred without negligence or bad
faith on their part, arising out of or in connection with the acceptance or administration of the
transactions contemplated by the Indenture and the other Basic Documents, including the reasonable
costs and expenses of defending themselves against any claim or liability in connection with the
exercise or performance of any of their powers or duties under the Indenture; and

          (d) indemnify the Owner Trustee and its agents, successors, assigns and servants in accordance
with Section 8.02 of the Trust Agreement to the extent that amounts thereunder have not been paid
pursuant to Section 5.05 of this Agreement.

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ARTICLE V.

DISTRIBUTIONS; STATEMENTS TO SECURITYHOLDERS

     Section 5.01 Post Office Box. All payments and other proceeds of any type and from any source
on or with respect to the Receivables that are delivered to a Post Office Box shall be the property
of the Trust, subject to the Lien of the Indenture and the rights of the Indenture Trustee
thereunder.

     Section 5.02 Accounts.

          (a) The Servicer has established an account or accounts in the name of HMFC (the “Local
Remittance Account”). All payments on the Receivables mailed by Obligors or any other Person to a
Post Office Box or otherwise delivered to the Servicer shall be deposited by Citibank N.A., as
remittance processor, or the Servicer, as applicable, on a daily basis into the Local Remittance
Account, from which the available funds related to the Receivables will be swept by the Servicer
within two Business Days to the Collection Account; provided, however, that if the Servicer fails
to transfer such payments to the Collection Account within two Business Days or the Servicer shall
for any reason no longer be acting as Servicer, HMFC at its expense shall deliver to the successor
Servicer all documents and records relating to the Post Office Boxes and cause Citibank N.A. to
transfer payments related to the Receivables directly from the Post Office Box to the Collection
Account. Amounts on deposit in the Local Remittance Account shall not be invested.

     (b) (i) On or prior to the Closing Date, the Servicer shall
establish, or cause to be established, an account with and in the name of
the Indenture Trustee (the “Collection Account”), which shall be maintained
as an Eligible Account and shall bear a designation clearly indicating that
the amounts deposited thereto are held for the benefit of the Noteholders.

          (ii) The Issuer, for the benefit of the Noteholders, shall cause
the Servicer to establish with and maintain in the name of the Indenture
Trustee an Eligible Account (including the subaccounts referred to in
clause (iv) below, the “Note Distribution Account”), bearing a designation
clearly indicating that the funds deposited therein are held for the
benefit of the Noteholders.

          (iii) The Issuer, for the benefit of the Noteholders, shall cause
the Servicer to establish with and maintain in the name of the Indenture
Trustee an Eligible Account (the “Reserve Account”), bearing a designation
clearly indicating that the funds deposited therein are held for the
benefit of the Noteholders.

          (iv) The Issuer shall also cause to be established two
administrative subaccounts within the Note Distribution Account, which
subaccounts shall be designated the “Interest Distribution Account” and the
“Principal Distribution Account”, respectively. The Interest Distribution
Account and the Principal Distribution Account are established and
maintained solely for administrative purposes.

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          (v) Funds on deposit in the Reserve Account shall be invested by
the Indenture Trustee in Eligible Investments selected by the Servicer;
provided, however, that if the Servicer fails to select any Eligible
Investment, the Indenture Trustee shall invest such funds in an Eligible
Investment described in clause (d) of such definition. All such Eligible
Investments shall be held by the Indenture Trustee for the benefit of the
Noteholders and/or the Certificateholders, as applicable. Other than as
permitted in writing by the Rating Agencies, funds on deposit in the
Reserve Account shall be invested in Eligible Investments that will mature
not later than the Business Day immediately preceding the next Payment
Date. Funds deposited in the Reserve Account, upon the maturity of any
Eligible Investments on a day which immediately precedes a Payment Date,
are not required to be invested overnight.

          (vi) Funds on deposit in the Collection Account shall be invested
by the Indenture Trustee in Eligible Investments selected by the Servicer;
provided, however, that if the Servicer fails to select any Eligible
Investment, the Indenture Trustee shall invest such funds in an Eligible
Investment described in clause (d) of such definition. All such Eligible
Investments shall be held by the Indenture Trustee for the benefit of the
Noteholders and/or the Certificateholders, as applicable. Funds on deposit
in the Collection Account shall be invested in Eligible Investments that
will mature not later than the Business Day immediately preceding the next
Payment Date. Funds deposited in the Collection Account, upon the maturity
of any Eligible Investments on a day which immediately precedes a Payment
Date, are not required to be invested overnight. Investment earnings on
funds deposited in the Collection Account, net of losses and investment
expenses, shall be released to the Servicer on each Payment Date and shall
be the property of the Servicer.

     (c) (i) The Indenture Trustee shall possess all right, title and
interest in all funds received and all funds on deposit from time to time
in a Post Office Box and the Local Remittance Account in each case only
with respect to the Receivables, the Trust Accounts and in all proceeds
thereof (including all income thereon). The Trust Accounts shall be under
the sole dominion and control of the Indenture Trustee for the benefit of
the Noteholders and the Certificateholders, as the case may be. If, at any
time, a Trust Account ceases to be an Eligible Account, the Indenture
Trustee (or the Servicer on its behalf) shall within 5 Business Days (or
such longer period, not to exceed 15 calendar days, as to which each Rating
Agency may consent) establish a new Trust Account as an Eligible Account
and shall transfer any cash or any investments from the account that is no
longer an Eligible Account to the Trust Account.

          (ii) The Servicer shall have the power, revocable by the
Indenture Trustee or by the Owner Trustee with the consent of the Indenture
Trustee, to instruct the Indenture Trustee in writing to make withdrawals
and payments from the Trust Accounts and the Certificate Deposit Account
for the purpose of withdrawing any amounts deposited in error into such
accounts.

     Section 5.03 Application of Collections. All payments received from or on behalf of an Obligor
during each Collection Period with respect to each Receivable (other than a Purchased Receivable)
shall be applied to interest and principal in accordance with the Simple Interest

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Method. The Servicer shall make all deposits of Collections and other Available Amounts received
into the Collection Account on the second Business Day following receipt thereof. However, so long
as the Monthly Remittance Condition is satisfied, the Servicer may retain such amounts received
during a Collection Period until the Business Day immediately preceding the related Payment Date.

     Section 5.04 Purchase Amounts. The Servicer or the Seller shall deposit or cause to be
deposited in the Collection Account, on or prior to each Determination Date, the aggregate Purchase
Amount with respect to Purchased Receivables and the Servicer shall deposit therein all amounts to
be paid under Section 4.07. Notice of this amount shall be provided in writing by the applicable
party to the Indenture Trustee.

     Section 5.05 Distributions.

          (a) On each Determination Date, the Servicer shall calculate all amounts required to be
deposited pursuant to this Section and deliver a Servicer’s Certificate pursuant to Section 4.09.

          (b) On each Payment Date, except as specified in Section 5.04(b) of the Indenture, 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 4.09) to
make the following deposits and distributions from Available Amounts on deposit in the Collection
Account, and in the event of an Available Amounts Shortfall from amounts withdrawn from the Reserve
Account in the following order and priority:

          (i) to the Servicer, the Servicing Fee, including any unpaid
Servicing Fees with respect to one or more prior Collection Periods, and
Advances not previously reimbursed to the Servicer;

          (ii) to the Interest Distribution Account, (a) the aggregate
amount of interest accrued for the related Interest Period on each of the
Class A Notes at their respective interest rates on the principal
outstanding as of the previous Payment Date after giving effect to all
payments of principal to the Class A Noteholders on the preceding Payment
Date; and (b) the excess, if any, of the amount of interest payable to the
Class A Noteholders on those prior Payment Dates over the amounts actually
paid to the Class A Noteholders on those prior Payment Dates, plus interest
on any such shortfall at their respective interest rates to the extent
permitted by law;

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

          (iv) to the Interest Distribution Account, (a) the aggregate
amount of interest accrued for the related Interest Period on each of the
Class B Notes at the Class B Rate on the principal outstanding as of the
previous Payment Date after giving effect to all payments of principal to
the Class B Noteholders on the preceding Payment Date; and (b) the excess,
if any, of the amount of interest payable to the Class B Noteholders on
prior Payment Dates over the amounts actually paid to the Class B
Noteholders on those

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prior Payment Dates, plus interest on any such shortfall at the Class B
Rate to the extent permitted by law;

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

          (vi) to the Interest Distribution Account, (a) the aggregate
amount of interest accrued for the related Interest Period on each of the
Class C Notes at the Class C Rate on the principal outstanding as of the
previous Payment Date after giving effect to all payments of principal to
the Class C Noteholders on the preceding Payment Date; and (b) the excess,
if any, of the amount of interest payable to the Class C Noteholders on
prior Payment Dates over the amounts actually paid to the Class C
Noteholders on prior Payment Dates, plus interest on any such shortfall at
the Class C Rate to the extent permitted by law;

          (vii) to the Principal Distribution Account, the Third Priority
Principal Distribution Amount, if any;

          (viii) to the Interest Distribution Account, (a) the aggregate
amount of interest accrued for the related Interest Period on each of the
Class D Notes at the Class D Rate on the principal outstanding as of the
previous Payment Date after giving effect to all payments of principal to
the Class D Noteholders on the preceding Payment Date; and (b) the excess,
if any, of the amount of interest payable to the Class D Noteholders on
prior Payment Dates over the amounts actually paid to the Class D
Noteholders on prior Payment Dates, plus interest on any such shortfall at
the Class D Rate to the extent permitted by law;

          (ix) to the Principal Distribution Account, the Regular Principal
Distribution Amount;

          (x) to the Reserve Account, from Available Amounts remaining, the
amount, if any, necessary to cause the amount on deposit in that account to
equal the Reserve Account Required Amount;

          (xi) to the Indenture Trustee and the Owner Trustee, any accrued
and unpaid fees, reimbursements and expenses, in each case to the extent
such fees, reimbursements and expenses have not been previously paid by the
Servicer and to the Securities Intermediary, any accrued and unpaid
indemnification expenses owed to it; and

          (xii) any Available Amounts remaining, if any, to the Owner
Trustee or its agent, for deposit into the Certificate Distribution Account
(as defined in the Trust Agreement) and subsequent distribution to the
Certificateholder pursuant to Section 5.02 of the Trust Agreement.

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     Section 5.06 Reserve Account.

          (a) On or prior to the Closing Date, the Issuer shall cause to be deposited an amount equal to
the Reserve Account Deposit into the Reserve Account from the net proceeds of the sale of the
Notes. The Reserve Account shall be an asset of the Issuer.

          (b) In the event that the Servicer’s Certificate states that there is an Available Amounts
Shortfall, then the Indenture Trustee shall, upon written directions from the Servicer, withdraw
the Reserve Account Withdrawal Amount from the Reserve Account and deposit such Reserve Account
Withdrawal Amount into the Collection Account no later than 12:00 noon, New York City time, on the
Business Day prior to the related Payment Date.

          (c) In the event that the amount on deposit in the Reserve Account (after giving effect to all
deposits thereto and withdrawals therefrom on such Business Day on a Payment Date) is greater than
the Reserve Account Required Amount on any Payment Date, the Indenture Trustee shall distribute,
upon written directions from the Servicer, all such amounts to the Depositor as per the monthly
Servicer’s Certificate. Upon any such distribution to the Depositor, the Noteholders shall have no
further rights in, or claims to, such amounts.

          (d) In the event that on any Payment Date the amount on deposit in the Reserve Account shall
be less than the Reserve Account Required Amount, the Available Amounts remaining after the payment
of the amounts set forth in Section 5.05(b)(i) through (ix), up to an amount equal to such
shortfall, shall be deposited by the Indenture Trustee, upon written directions from the Servicer,
to the Reserve Account on such Payment Date.

          (e) Subject to Section 9.01, amounts will continue to be applied pursuant to Section 5.05
following the payment in full of the Outstanding Amount of Notes until the Pool Balance is reduced
to zero. Following the payment in full of the aggregate Outstanding Amount of the Notes and the
Certificates and of all other amounts owing or to be distributed hereunder or under the Indenture
or the Trust Agreement to the Noteholders and the termination of the Trust, any amount then
allocated to the Reserve Account shall be distributed to the Depositor.

     Section 5.07 Statements to Securityholders. On each Payment Date, the Servicer shall provide
to the Indenture Trustee (with a copy to each Rating Agency) for the Indenture Trustee to forward
to each Noteholder of record as of the most recent Record Date and to the Owner Trustee for the
Owner Trustee to forward to each Certificateholder of record as of the most recent Record Date a
statement substantially in the form of Exhibit B, respectively, setting forth at least the
following information as to the Securities to the extent applicable:

          (i) the amount of collections received with respect to the
Receivables during the related Collection Period and allocable to principal

allocable to each Class of Notes on such Payment Date;

          (ii) the amount of collections received with respect to the
Receivables during the related Collection Period and allocable to interest

allocable to each Class of Notes on such Payment Date;

30

 

          (iii) the Outstanding Amount of each Class of Notes, the Note
Pool Factor for each such Class as of the close of business on the last day
of the preceding Collection Period, after giving effect to payments
allocated to principal reported under clause (i) above;

          (iv) the amount of the Servicing Fee paid to the Servicer and the
amount of any fees payable to the Owner Trustee, or the Indenture Trustee
with respect to the related Collection Period;

          (v) the aggregate amounts of Realized Losses, if any, with
respect to the related Collection Period;

          (vi) the balance of the Reserve Account on the related
Determination Date after giving effect to deposits and withdrawals to be
made on the relevant Payment Date, if any;

          (vii) the Pool Balance as of the close of business on the last
day of the related Collection Period, after giving effect to payments
allocated to principal reported under clause (i) above;

          (viii) the amount of any deposit to the Reserve Account and the
amount and application of any funds withdrawn from the Reserve Account, in
each case with respect to such Payment Date;

          (ix) the aggregate principal balance of all Receivables that
became Liquidated Receivables or Purchased Receivables during the related
Collection Period;

          (x) the aggregate principal balance and number of Receivables
that are 30 to 60 days, 61 to 90 days or 91 days or more delinquent as of
the last day of the related Collection Period;

          (xi) any Available Amounts Shortfall after giving effect to
payments on such Payment Date, and any change in such amounts from the
preceding statement;

          (xii) the aggregate Purchase Amounts for Receivables, if any,
that were purchased during or with respect to such Collection Period;

          (xiii) the aggregate Principal Balance and number of all
Receivables with respect to which the related Financed Vehicle was
repossessed;

          (xiv) the aggregate Principal Balance and number of Receivables
with respect to which the Servicer granted an extension;

          (xv) the Required Yield Supplement Overcollateralization Amount
for the next Collection Period; and

          (xvi) any amounts distributed to the Certificateholders.

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     Each amount set forth on the Payment Date statement under clauses (i), (ii) or (iv) above
shall be expressed as a dollar amount per $1,000 of original principal balance of a Certificate or
Note, as applicable.

     The Indenture Trustee may make any such statement (and, at its option, any additional files
containing the same information in an alternative format) available to the applicable Noteholders
via [______]. In connection with providing access to the Indenture Trustee’s website, the
Indenture Trustee may require registration and the acceptance of certain terms and conditions. The
Indenture Trustee shall have the right to change the way such statements are distributed in order
to make such distributions more convenient and/or more accessible to the above parties regarding
any such changes; provided, however, that the Indenture Trustee will also mail copies of any such
statements to any requesting Noteholder.

     Section 5.08 Advances by the Servicer.

     By the close of business on the day required by Section 5.02 hereof, the Servicer may, in its
sole discretion, deposit into the Collection Account, out of its own funds, an Advance; provided,
however, that the Servicer shall not make any Advances with respect to Defaulted Receivables.

ARTICLE VI.

THE DEPOSITOR

     Section 6.01 Representations of Depositor. The Depositor makes the following representations
on which the Issuer relies in accepting the Receivables and delivering the Securities. Such
representations speak as of the execution and delivery of this Agreement and as of the Closing Date
and shall survive the sale, transfer and assignment of the Receivables by the Depositor to the
Issuer and the pledge thereof to the Indenture Trustee pursuant to the Indenture.

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

          (b) Due Qualification. The Depositor is duly qualified to do business as a foreign corporation
in good standing, and has obtained all necessary licenses and approvals, in all jurisdictions where
the failure to do so would materially and adversely affect the Depositor’s ability to transfer the
Receivables to the Trust pursuant to this Agreement or the validity or enforceability of the
Receivables.

          (c) Power and Authority. The Depositor has the corporate 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 Depositor has full power and authority to sell and assign the property to be
sold and assigned to and deposited with the Issuer, and the Depositor shall have 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

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Basic Documents to which the Depositor is a party have been and will be duly authorized by the
Depositor by all necessary corporate action.

          (d) Binding Obligation. This Agreement and the other Basic Documents to which the Depositor is
a party, when duly executed and delivered by the other parties hereto and thereto, shall constitute
legal, valid and binding obligations of the Depositor, enforceable against the Depositor in
accordance with their respective terms, except as the enforceability thereof may be limited by
bankruptcy, insolvency, reorganization or similar laws now or hereafter in effect relating to or
affecting creditors’ rights generally and to general principles of equity (whether applied in a
proceeding at law or in equity).

          (e) No Violation. The consummation of the transactions contemplated by this Agreement and the
other Basic Documents and the fulfillment of the terms of this Agreement and the other Basic
Documents shall not conflict with, result in any breach of any of the terms or provisions of or
constitute (with or without notice or lapse of time, or both) a default under, the certificate of
incorporation or bylaws of the Depositor, or any indenture, agreement, mortgage, deed of trust or
other instrument to which the Depositor is a party or by which it is bound; or result in the
creation or imposition of any Lien upon any of its properties pursuant to the terms of any such
indenture, agreement, mortgage, deed of trust or other instrument, other than this Agreement and
the other Basic Documents; or violate any law, order, rule or regulation applicable to the
Depositor of any court or federal or state regulatory body, administrative agency or other
governmental instrumentality having jurisdiction over the Depositor or its properties.

          (f) No Proceedings. There are no proceedings or investigations pending or, to the Depositor’s
knowledge, threatened, against the Depositor before any court, regulatory body, administrative
agency or other tribunal or governmental instrumentality having jurisdiction over the Depositor or
its properties: (i) asserting the invalidity of this Agreement or any other Basic Document; (ii)
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; (iii) seeking any
determination or ruling that might materially and adversely affect the performance by the Depositor
of its obligations under, or the validity or enforceability of, this Agreement or any other Basic
Document; or (iv) seeking to adversely affect the federal income tax attributes of the Trust, the
Notes or the Certificates.

          (g) No Consents. The Depositor is not required to obtain the consent of any other party or any
consent, license, approval, registration, authorization, or declaration of or with any governmental
authority, bureau or agency in connection with the execution, delivery, performance, validity or
enforceability of this Agreement or any other Basic Document to which it is a party that has not
already been obtained.

     Section 6.02 Corporate Existence. During the term of this Agreement, the Depositor will keep
in full force and effect its existence, rights and franchises as a corporation under the laws of
the jurisdiction of its incorporation and will obtain and preserve its qualification to do business
in each jurisdiction in which such qualification is or shall be necessary to protect the validity
and enforceability of this Agreement, the Basic Documents and each other instrument or agreement
necessary or appropriate to the proper administration of this Agreement and the

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transactions contemplated hereby. In addition, all transactions and dealings between the Depositor
and its Affiliates will be conducted on an arm’s-length basis.

     Section 6.03 Liability of Depositor; Indemnities. The Depositor shall be liable in accordance
herewith only to the extent of the obligations specifically undertaken by the Depositor under this
Agreement (which shall not include distributions on account of the Notes or the Certificates).

     Section 6.04 Merger or Consolidation of, or Assumption of the Obligations of, Depositor. The
Depositor shall not merge or consolidate with any other Person or permit any other Person to become
the successor to the Depositor’s business.

     Section 6.05 Amendment of Depositor’s Organizational Documents. The Depositor shall not amend
its organizational documents except in accordance with the provisions thereof.

ARTICLE VII.

THE SERVICER

     Section 7.01 Representations of Servicer. The Servicer makes the following representations
upon which the Issuer is deemed to have relied in acquiring the Receivables. Such representations
speak as of the execution and delivery of this Agreement and as of the Closing Date and shall
survive the sale of the Receivables to the Issuer and the pledge thereof to the Indenture Trustee
pursuant to the Indenture.

          (a) Organization and Good Standing. The Servicer is duly organized and validly existing as a
corporation in good standing under the laws of the State of its incorporation, with the corporate
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,
the corporate power, authority and legal right to acquire, own, and service the Receivables.

          (b) Due Qualification. The Servicer is duly qualified to do business as a foreign corporation
in good standing, and has obtained all necessary licenses and approvals, in all jurisdictions where
the failure to do so would materially and adversely affect the Servicer’s ability to acquire, own
and service the Receivables.

          (c) Power and Authority. The Servicer 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; and the execution, delivery and performance of this Agreement and the other Basic Documents
to which it is a party have been duly authorized by the Servicer by all necessary corporate action.

          (d) Binding Obligation. This Agreement and the other Basic Documents to which it is a party
constitute legal, valid and binding obligations of the Servicer, enforceable against the Servicer
in accordance with their respective terms, except as the enforceability thereof may be limited by
bankruptcy, insolvency, reorganization or other similar laws affecting

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the enforcement of creditors’ rights generally and to general principles of equity whether applied
in a proceeding in equity or at law.

          (e) No Violation. The consummation of the transactions contemplated by this Agreement and the
other Basic Documents to which it is a party and the fulfillment of their respective terms shall
not conflict with, result in any breach of any of the terms and provisions of, or constitute (with
or without notice or lapse of time or both) a default under, the articles of incorporation or
bylaws of the Servicer, or any indenture, agreement, mortgage, deed of trust or other instrument to
which the Servicer is a party or by which it is bound; or result in the creation or imposition of
any Lien upon any of its properties pursuant to the terms of any such indenture, agreement,
mortgage, deed of trust or other instrument, other than this Agreement and the other Basic
Documents, or violate any law, order, rule or regulation applicable to the Servicer of any court or
federal or state regulatory body, administrative agency or other governmental instrumentality
having jurisdiction over the Servicer or any of its properties.

          (f) No Proceedings. There are no proceedings or investigations pending or, to the Servicer’s
knowledge, threatened, against the Servicer before any court, regulatory body, administrative
agency or other tribunal or governmental instrumentality having jurisdiction over the Servicer or
its properties: (i) asserting the invalidity of this Agreement or any of the other Basic Documents;
(ii) seeking to prevent the issuance of the Securities or the consummation of any of the
transactions contemplated by this Agreement or any of the other Basic Documents; (iii) seeking any
determination or ruling that might materially and adversely affect the performance by the Servicer
of its obligations under, or the validity or enforceability of, this Agreement or any of the other
Basic Documents; or (iv) seeking to adversely affect the federal income tax or other federal, state
or local tax attributes of the Securities.

          (g) No Consents. The Servicer is not required to obtain the consent of any other party or any
consent, license, approval or authorization, or registration or declaration with, any governmental
authority, bureau or agency in connection with the execution, delivery, performance, validity or
enforceability of this Agreement.

     Section 7.02 Indemnities of Servicer. The Servicer shall be liable in accordance herewith only
to the extent of the obligations specifically undertaken by the Servicer and the representations
made by the Servicer under this Agreement:

          (a) The Servicer shall indemnify, defend and hold harmless the Issuer, the Owner Trustee, the
Indenture Trustee, the Securityholders and the Depositor and any of the officers, directors,
employees and agents of the Issuer, the Owner Trustee and the Indenture Trustee from and against
any and all costs, expenses, losses, damages, claims and liabilities arising out of or resulting
from the use, ownership or operation by the Servicer or any Affiliate thereof of a Financed
Vehicle, excluding any losses incurred in connection with the sale of any repossessed Financed
Vehicles in a commercially reasonable manner and in compliance with the terms of this Agreement.

          (b) The Servicer shall indemnify, defend and hold harmless the Issuer, the Owner Trustee, the
Indenture Trustee and the Depositor and their respective officers, directors, agents and employees,
and the Securityholders, from and against any taxes that may at any time

35

 

be asserted against any of such parties with respect to the transactions contemplated in this
Agreement, including any sales, gross receipts, tangible or intangible personal property, privilege
or license taxes (but not including any federal or other income taxes, including franchise taxes
asserted with respect to, and as of the date of, the transfer of the Receivables to the Trust or
the issuance and original sale of the Securities), and any costs and expenses in defending against
the same.

          (c) The Servicer shall indemnify, defend and hold harmless the Issuer, the Owner Trustee, the
Indenture Trustee, the Depositor, the Securityholders and any of the officers, directors, employees
or agents of the Issuer, the Owner Trustee and the Indenture Trustee 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 any such Person through, the
negligence, misfeasance or bad faith of the Servicer in the performance of its duties under this
Agreement or by reason of reckless disregard of its obligations and duties under this Agreement.

     For purposes of this Section, in the event of the termination of the rights and obligations of
HMFC (or any successor thereto pursuant to Section 7.03) as Servicer pursuant to Section 8.02, or
the resignation by such Servicer pursuant to this Agreement, such Servicer shall be deemed to be
the Servicer pending appointment of a successor Servicer (other than the Indenture Trustee)
pursuant to Section 8.03.

     Indemnification under this Section shall survive the resignation or removal of the Servicer or
the termination of this Agreement, and shall include reasonable fees and expenses of counsel and
reasonable expenses of litigation. If the Servicer shall have made any indemnity payments pursuant
to this Section and the Person to or on behalf of whom such payments are made thereafter collects
any of such amounts from others, such Person shall promptly repay such amounts to the Servicer,
without interest. The Servicer shall pay all amounts due, pursuant to this Section, with respect to
the Indenture Trustee and Owner Trustee as set forth in Section 5.05(b)(xi).

     Section 7.03 Merger or Consolidation of, or Assumption of the Obligations of, Servicer. The
Servicer shall not merge or consolidate with any other Person, convey, transfer or lease
substantially all its assets as an entirety to another Person, or permit any other Person to become
the successor to the Servicer’s business unless, after such merger, consolidation, conveyance,
transfer, lease or succession, the successor or surviving entity shall be capable of fulfilling the
duties of the Servicer contained in this Agreement. Any Person (i) into which the Servicer may be
merged or consolidated, (ii) resulting from any merger or consolidation to which the Servicer shall
be a party, (iii) that acquires by conveyance, transfer or lease substantially all of the assets of
the Servicer or (iv) succeeding to the business of the Servicer, which Person shall execute an
agreement of assumption to perform every obligation of the Servicer under this Agreement, shall be
the successor to the Servicer under this Agreement without the execution or filing of any paper or
any further act on the part of any of the parties to this Agreement. The Servicer shall provide
notice of any merger, consolidation or succession pursuant to this Section 7.03(a) to the Owner
Trustee, the Indenture Trustee and each Rating Agency. Notwithstanding the foregoing, the Servicer
shall not merge or consolidate with any other Person or permit any other Person to become a
successor to the Servicer’s business unless

36

 

(i) immediately after giving effect to such transaction, no representation or warranty made
pursuant to Section 7.01 shall have been breached (for purposes hereof, such representations and
warranties shall speak as of the date of the consummation of such transaction) and no event that,
after notice or lapse of time or both, would become a Servicer Termination Event shall have
occurred, (ii) the Servicer shall have delivered to the Owner Trustee and the Indenture Trustee an
Officer’s Certificate and an Opinion of Counsel each stating that such consolidation, merger or
succession and such agreement of assumption comply with this Section 7.03(a) and that all
conditions precedent provided for in this Agreement relating to such transaction have been complied
with and (iii) the Servicer shall have delivered to the Owner Trustee and the Indenture Trustee an
Opinion of Counsel stating that either (A) all financing statements and continuation statements and
amendments thereto have been executed and filed that are necessary to preserve and protect the
interest of the Trust and the Indenture Trustee, respectively, in the assets of the Trust and
reciting the details of such filings or (B) no such action shall be necessary to preserve and
protect such interest.

     Section 7.04 Limitation on Liability of Servicer and Others. None of the Servicer or any of
its directors, officers, employees or agents shall be under any liability to the Issuer, the
Depositor, the Indenture Trustee, the Owner Trustee, the Noteholders or the Certificateholders,
except as provided in 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 a
breach of this Agreement or willful misfeasance, bad faith or negligence in the performance of
duties. The Servicer and any director, officer, employee or agent of the Servicer may conclusively
rely in good faith on the written 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.

     Section 7.05 Appointment of Subservicer. The Servicer may at any time appoint a subservicer to
perform all or any portion of its obligations as Servicer hereunder; provided, however, that 10
days’ prior notice of such appointment shall have been given to each Rating Agency, and each Rating
Agency shall have notified the Servicer, the Owner Trustee and the Indenture Trustee in writing
that such appointment satisfies the Rating Agency Condition; and provided further, that the
Servicer shall remain obligated and be liable to the Owner Trustee, the Indenture Trustee and the
Securityholders for the servicing and administering of the Receivables in accordance with the
provisions hereof without diminution of such obligation and liability by virtue of the appointment
of such subservicer and to the same extent and under the same terms and conditions as if the
Servicer alone were servicing and administering the Receivables. The fees and expenses of any
subservicer shall be as agreed between the Servicer and such subservicer from time to time, and
none of the Owner Trustee, the Indenture Trustee, the Issuer or the Securityholders shall have any
responsibility therefor.

     Section 7.06 Servicer Not to Resign.

          (a) Subject to the provisions of Section 7.03(a), the Servicer shall not resign from the
obligations and duties imposed on it by this Agreement as Servicer except upon a determination that
the performance of its duties under this Agreement shall no longer be permissible under applicable
law.

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          (b) Notice of any determination that the performance by the Servicer of its duties hereunder
is no longer permitted under applicable law shall be communicated to the Owner Trustee and the
Indenture Trustee at the earliest practicable time (and, if such communication is not in writing,
shall be confirmed in writing at the earliest practicable time) and any such determination shall be
evidenced by an Opinion of Counsel to such effect delivered by the Servicer to the Owner Trustee
and the Indenture Trustee concurrently with or promptly after such notice. No resignation of the
Servicer shall become effective until a successor shall have assumed the responsibilities and
obligations of the Servicer in accordance with Section 8.03. If no successor Servicer has been
appointed within 30 days of resignation or removal, the Servicer, as the case may be, may petition
any court of competent jurisdiction for such appointment.

ARTICLE VIII.

DEFAULT

     Section 8.01 Servicer Termination Events. For purposes of this Agreement, the occurrence and
continuance of any of the following shall constitute a “Servicer Termination Event”:

          (a) Any failure by the Servicer to deposit into any Account any proceeds or payment required
to be so delivered or to direct the Indenture Trustee to make the required payment from any Account
under the terms of this Agreement that continues unremedied for a period of five Business days
after written notice is received by the Servicer or after discovery of such failure by a
Responsible Officer of the Servicer;

          (b) Failure on the part of the Servicer duly to observe or perform, in any material respect,
any covenants or agreements of the Servicer set forth in this Agreement, which failure (i)
materially and adversely affects the rights of the Securityholders and (ii) continues unremedied
for a period of 60 days after discovery of such failure by a Responsible Officer of the Servicer or
after the date on which written notice of such failure requiring the same to be remedied shall have
been given to the Servicer by any of the Owner Trustee, the Indenture Trustee or Noteholders
evidencing not less than 50% of the Outstanding Amounts of the Controlling Class of Notes; or

          (c) The occurrence of an Insolvency Event with respect to the Servicer.

     Section 8.02 Consequences of a Servicer Termination Event. If a Servicer Termination Event
shall occur, the Indenture Trustee or Noteholders evidencing more than 50% of the voting interests
of the Controlling Class may, by notice given in writing to the Servicer (and to the Indenture
Trustee, the Owner Trustee and the Depositor if given by such Noteholders), 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, power, obligations and responsibilities of the
Servicer under this Agreement automatically shall pass to, be vested in and become obligations and
responsibilities of the successor Servicer; provided, however, that the successor Servicer shall
have no liability with respect to any obligation that was required to be performed by the
terminated Servicer prior to the date that the successor Servicer becomes the Servicer or any

38

 

claim of a third party based on any alleged action or inaction of the terminated Servicer. The
successor Servicer is authorized and empowered by this Agreement to execute and deliver, on behalf
of the terminated Servicer, as attorney-in-fact or otherwise, any and all documents and other
instruments and to do or accomplish all other acts or things necessary or appropriate to effect the
purposes of such notice of termination, whether to complete the transfer and endorsement of the
Receivables and related documents to show the Indenture Trustee (or the Owner Trustee if the Notes
have been paid in full) as lienholder or secured party on the related certificates of title of the
Financed Vehicles or otherwise. The terminated Servicer agrees to cooperate with the successor
Servicer in effecting the termination of the responsibilities and rights of the terminated Servicer
under this Agreement, including the transfer to the successor Servicer for administration by it of
all money and property held by the Servicer with respect to the Receivables and other records
relating to the Receivables, including any portion of the Receivables File held by the Servicer and
a computer tape in readable form as of the most recent Business Day containing all information
necessary to enable the successor Servicer to service the Receivables. The terminated Servicer
shall also provide the successor Servicer access to Servicer personnel and computer records in
order to facilitate the orderly and efficient transfer of servicing duties.

     Section 8.03 Appointment of Successor Servicer.

          (a) On and after the time the Servicer receives a notice of termination pursuant to Section
8.02 or upon the resignation of the Servicer pursuant to Section 7.06, the Indenture Trustee or the
Noteholders evidencing more than 50% of the voting interests of the Controlling Class shall appoint
a successor Servicer which 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 rights, responsibilities,
restrictions, duties, liabilities and termination provisions relating to the Servicer under this
Agreement, except as otherwise stated herein. The Depositor, the Owner Trustee, the Indenture
Trustee and such successor Servicer shall take such action, consistent with this Agreement, as
shall be necessary to effectuate any such succession. If a successor Servicer is acting as Servicer
hereunder, it shall be subject to termination under Section 8.02 upon the occurrence of any
Servicer Termination Event after its appointment as successor Servicer. The original Servicer shall
pay any and all fees and expenses incurred as a result of a transfer of servicing.

          (b) The Noteholders evidencing more than 50% of the voting interests of the Controlling Class
shall have no liability to the Owner Trustee, the Indenture Trustee, the Servicer, the Depositor,
any Noteholders, any Certificateholders or any other Person if it exercises its right to appoint a
successor to the Servicer. Pending appointment pursuant to the preceding paragraph, the outgoing
Servicer shall continue to act as Servicer until a successor has been appointed and accepted such
appointment.

          (c) Upon appointment, the successor Servicer shall be the successor in all respects to the
predecessor Servicer and shall be subject to all the responsibilities, duties and liabilities
arising thereafter relating thereto placed on the predecessor Servicer, and shall be entitled to
the Servicing Fee and all the rights granted to the predecessor Servicer by the terms and
provisions of this Agreement.

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     Section 8.04 Notification to Securityholders. Upon any termination of, or appointment of a
successor to, the Servicer pursuant to this Article VIII, the Administrator shall give prompt
written notice thereof to the Certificateholders, and the Indenture Trustee shall give prompt
written notice thereof to the Noteholders and each Rating Agency.

     Section 8.05 Waiver of Past Defaults. The Noteholders evidencing more than 50% of the voting
interests of the Controlling Class may, on behalf of all Securityholders, waive in writing any
default by the Servicer in the performance of its obligations hereunder and its consequences,
except a default in making any required deposits to or payments from any of the Trust Accounts in
accordance with this Agreement. Upon any such waiver of a past default, such default shall cease to
exist, and any Servicer Termination Event arising therefrom shall be deemed to have been remedied
for every purpose of this Agreement. No such waiver shall extend to any subsequent or other default
or impair any right consequent thereto.

ARTICLE IX.

TERMINATION

     Section 9.01 Optional Purchase of All Receivables.

          (a) On each Determination Date as of which the Pool Balance is equal to or less than 10% of
the Initial Pool Balance, the Servicer shall have the option to purchase the Receivables. To
exercise such option, the Servicer shall deposit to the Collection Account pursuant to Section 5.04
an amount equal to the aggregate Purchase Amount for the Receivables and shall succeed to all
interests in and to the Receivables. The exercise of such option shall effect a retirement, in
whole but not in part, of all outstanding Notes.

          (b) As described in Article IX of the Trust Agreement, notice of any termination of the Trust
shall be given by the Servicer to the Owner Trustee and the Indenture Trustee as soon as
practicable after the Servicer has received notice thereof.

          (c) Following the satisfaction and discharge of the Indenture and the payment in full of the
principal of and interest on the Notes, the Certificateholders will succeed to the rights of the
Noteholders hereunder and the Trust will succeed to the rights of, and assume the obligations to
make payments to Certificateholders of, the Indenture Trustee pursuant to this Agreement.

ARTICLE X.

MISCELLANEOUS

     Section 10.01 Amendment.

          (a) This Agreement may be amended by the Depositor, the Servicer, the Indenture Trustee and
the Issuer, but without the consent of any of the Noteholders or the Certificateholders, to cure
any ambiguity, to correct or supplement any provisions in this Agreement or for the purpose of
adding any provisions to or changing in any manner or

40

 

eliminating any of the provisions in this Agreement or of modifying in any manner the rights of the
Noteholders or the Certificateholders; provided, however, that such action shall not, as evidenced
by an Opinion of Counsel delivered to the Owner Trustee and the Indenture Trustee, adversely affect
in any material respect the interests of any Noteholder or Certificateholder.

          (b) This Agreement may also be amended from time to time by the Depositor, the Servicer and
the Issuer, with the prior written consent of the Indenture Trustee and Noteholders holding not
less than 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 Securityholders; provided, however, that no such
amendment shall (i) increase or reduce in any manner the amount of, or accelerate or delay the
timing of, collections of payments on Receivables or distributions that shall be required to be
made for the benefit of the Securityholders or (ii) reduce the aforesaid percentage of the
Outstanding Amount of the Notes, the Securityholders of which are required to consent to any such
amendment, without the consent of the Noteholders holding all Outstanding Notes and
Certificateholders holding all outstanding Certificates.

     Promptly after the execution of any amendment or consent, the Administrator shall furnish
written notification of the substance of such amendment or consent to each Securityholder, the
Indenture Trustee and each Rating Agency.

     It shall not be necessary for the consent of Securityholders pursuant to this Section to
approve the particular form of any proposed amendment or consent, but it shall be sufficient if
such consent shall approve the substance thereof.

     Prior to the execution of any amendment to this Agreement, the Owner Trustee, on behalf of the
Issuer and the Indenture Trustee shall be entitled to receive and rely upon an Opinion of Counsel
stating that the execution of such amendment is authorized or permitted by this Agreement and the
Opinion of Counsel referred to in Section 10.02(i)(A). The Owner Trustee, on behalf of the Issuer,
and the Indenture Trustee may, but shall not be obligated to, enter into any such amendment that
affects the Owner Trustee’s or the Indenture Trustee’s, as applicable, own rights, duties or
immunities under this Agreement or otherwise.

     Section 10.02 Protection of Title to Trust.

          (a) The Servicer shall file such financing statements and cause to be filed such continuation
statements, all in such a manner and in such places as may be required by law fully to preserve,
maintain and protect the interest of the Issuer and the Indenture Trustee in the Receivables and
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.

          (b) Neither the Depositor nor the Servicer shall change its name, identity or corporate
structure in any manner that would, could or might make any financing statement or continuation
statement filed in accordance with paragraph (a) above insufficient within the meaning of Section
9-503 of the UCC, unless it shall have given the Owner Trustee and the

41

 

Indenture Trustee at least five days’ prior written notice thereof and shall have promptly filed
appropriate amendments to all previously filed financing statements or continuation statements.

          (c) The Servicer shall at all times maintain each office from which it shall service
Receivables, and its principal executive office, within the United States of America.

          (d) The Servicer shall maintain accounts and records as to each Receivable accurately and in
sufficient detail to permit (i) the reader thereof to know at any time the status of each 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 such Receivable and
the amounts from time to time deposited in the Collection Account in respect of each such
Receivable.

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

          (f) If at any time the Depositor or the Servicer shall propose to sell, grant a security
interest in or otherwise transfer any interest in motor vehicle receivables to any prospective
purchaser, lender or other transferee, the Servicer shall give to such prospective purchaser,
lender or other transferee computer tapes, records or printouts (including any restored from backup
archives) that, if they shall refer in any manner whatsoever to any Receivable, shall indicate
clearly that such Receivable has been sold and is owned by the Issuer and has been pledged to the
Indenture Trustee.

          (g) The Servicer shall permit the Indenture Trustee and its agents upon reasonable notice and
at any time during normal business hours to inspect, audit and make copies of and abstracts from
the Servicer’s records regarding any Receivable.

          (h) Upon request, the Servicer shall furnish to the Owner Trustee or the Indenture Trustee,
within fifteen Business Days, a list of all Receivables (by contract number and name of Obligor)
then held as part of the Trust, together with a reconciliation of such list to the Schedule of
Receivables and to each of the Servicer’s Certificates furnished prior to such request indicating
removal of Receivables from the Trust.

          (i) Upon request, the Servicer shall deliver to the Owner Trustee and the Indenture Trustee:

          (A) promptly after the execution and delivery of this
Agreement and each amendment hereto, an Opinion of Counsel stating
that, in the opinion of such counsel, either (i) all financing
statements and continuation statements have been filed that are
necessary to fully preserve and protect the interest of the Trust and
the Indenture Trustee in the Receivables, and reciting the details of
such filings or referring to prior Opinions of Counsel in which such

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details are given, or (ii) no such action shall be necessary to
preserve and protect such interest; and

          (B) within 90 days after the beginning of each calendar year
beginning with the first calendar year beginning more than three
months after the Cutoff Date, an Opinion of Counsel, dated as of a
date during such 90-day period, stating that, in the opinion of such
counsel, either (i) all financing statements and continuation
statements have been filed that are necessary to fully preserve and
protect the interest of the Trust 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 (ii) no
such action shall be necessary to preserve and protect such interest.

Each Opinion of Counsel referred to in clause (i) or (ii) above shall specify any action necessary
(as of the date of such opinion) to be taken in the following year to preserve and protect such
interest.

     Section 10.03 Notices. All demands, notices, communications and instructions upon or to the
Depositor, the Servicer, the Issuer, the Owner Trustee, the Indenture Trustee or any Rating Agency
under this Agreement shall be in writing, personally delivered, faxed and followed by first class
mail, 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 Depositor, to 10550 Talbert Avenue, Fountain Valley,
California 92708, Attention: Vice President and Secretary, with a copy to General Counsel; (b) in
the case of the Servicer and HMFC, to 10550 Talbert Avenue, Fountain Valley, California 92708,
Attention: Vice President, Finance; (c) in the case of the Issuer or the Owner Trustee, at the
Corporate Trust Office (as defined in the Trust Agreement); (d) in the case of Moody’s, to 99
Church Street, New York, New York 10007, Attention: ABS Monitoring Department; (e) in the case of
the Indenture Trustee, at the Corporate Trust Office (as defined in the Indenture); (f) in the case
of Standard & Poor’s, to 55 Water Street (40th Floor), New York, New York 10041, Attention: Asset
Backed Surveillance Department; and (g) in the case of Fitch, to One State Street Plaza, New York,
New York 10004; or, as to each of the foregoing, at such other address as shall be designated by
written notice to the other parties.

     Section 10.04 Assignment by the Depositor or the Servicer. Notwithstanding anything to the
contrary contained herein, except as provided in Sections 6.04 and 7.03 herein and as provided in
the provisions of this Agreement concerning the resignation of the Servicer, this Agreement may not
be assigned by the Depositor or the Servicer.

     Section 10.05 Limitations on Rights of Others. The provisions of this Agreement are solely for
the benefit of the Depositor, the Servicer, the Issuer, the Owner Trustee, the Certificateholders,
the Indenture Trustee and the Noteholders, and nothing in this Agreement, whether express or
implied, shall be construed to give to any other Person any legal or equitable right, remedy or
claim in the Trust Estate or under or in respect of this Agreement or any covenants, conditions or
provisions contained herein.

     Section 10.06 Severability. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such

43

 

prohibition or unenforceability without invalidating the remaining provisions hereof, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.

     Section 10.07 Counterparts. This Agreement may be executed by the parties hereto in any number
of counterparts, each of which when so executed and delivered shall be an original, but all of
which shall together constitute but one and the same instrument. Delivery of an executed
counterpart of a signature page to this Agreement by facsimile shall be effective as delivery of a
manually executed counterpart of this Agreement.

     Section 10.08 Headings. The headings of the various Articles and Sections herein are for
convenience of reference only and shall not define or limit any of the terms or provisions hereof.

     Section 10.09 GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     Section 10.10 Assignment by Issuer. The Depositor 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 or the assignment of any or all of the
Issuer’s rights and obligations hereunder to the Indenture Trustee.

     Section 10.11 Nonpetition Covenants. Notwithstanding any prior termination of this Agreement,
the parties hereto shall not, prior to the date that is one year and one day after the termination
of this Agreement with respect to the Issuer or the Depositor, acquiesce, petition or otherwise
invoke or cause the Issuer or the Depositor to invoke the process of any court or government
authority for the purpose of commencing or sustaining a case against the Issuer or the Depositor
under any federal or state bankruptcy, insolvency or similar law, or appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Issuer or
the Depositor or any substantial part of its property, or ordering the winding up or liquidation of
the affairs of the Issuer or the Depositor.

     Section 10.12 Limitation of Liability of Owner Trustee and Indenture Trustee.

          (a) Notwithstanding anything contained herein to the contrary, this Agreement has been
executed by [______] not in its individual capacity but solely in its capacity as
Owner Trustee of the Issuer and in no event shall [______] 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 in accordance with the
priorities set forth herein. For all purposes of this Agreement, in the performance of its duties
or obligations hereunder or in the performance of any duties or

44

 

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
accepted by [______], not in its individual capacity but solely as Indenture Trustee,
and in no event shall [______] 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 in accordance with the priorities set forth herein.

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

	 	 	 	 	 
	 	 	HYUNDAI AUTO RECEIVABLES TRUST 200[__]
	 

	 	By:
	 	[                                                            ], not in
	 

	 	 	 	its individual capacity but solely
	 

	 	 	 	as Owner Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	HYUNDAI ABS FUNDING CORPORATION, as
	 	 	     Depositor
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	HYUNDAI MOTOR FINANCE COMPANY, as
	 	 	     Servicer and Seller
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 

	 	 	 	[                                                            ], not in
	 

	 	 	 	its individual capacity but solely
	 

	 	 	 	as Indenture Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

 

 

EXHIBIT A

Representations and Warranties of Hyundai Motor Finance Company

Under Section 3.02 of the Receivables Purchase Agreement

          Terms used in this Exhibit A shall have the meanings assigned to them in the Receivables
Purchase Agreement, dated as of [______], 200[___](the “Receivables Purchase Agreement”),
between Hyundai Motor Finance Company as Seller (the “Seller”) and Hyundai ABS Funding Corporation
as depositor (the “Depositor”). Terms not defined in the Receivables Purchase Agreement shall have
the meanings assigned to them in the Sale and Servicing Agreement.

          (a)The Seller hereby represents and warrants as follows to the Depositor and the Indenture
Trustee as of the date hereof and as of the Transfer Date:

               (i) Organization and Good Standing. The Seller has been duly organized and is validly existing
as a corporation in good standing under the laws of the State of California, with the corporate
power and authority to own its properties and to conduct its business as such properties are
currently owned and such business is presently conducted.

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

               (iii) 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 had at all relevant times, and has, full power, authority and legal right to
sell, transfer and assign the property sold, transferred and assigned to the Depositor hereby and
has duly authorized such sale, transfer and assignment to the Depositor by all necessary corporate
action; and the execution, delivery and performance of this Agreement and the other Basic Documents
to which the Seller is a party have been duly authorized by the Seller by all necessary corporate
action.

               (iv) No Violation. The consummation of the transactions contemplated by this Agreement and the
other Basic Documents to which the Seller is a party and the fulfillment of their respective terms
do not conflict with, result in any breach of any of the terms and provisions of, or constitute
(with or without notice or lapse of time or both) a default under, the articles of incorporation or
bylaws of the Seller, or any indenture, agreement or other instrument to which the Seller is a
party or by which it is bound, or result in the creation or imposition of any Lien upon any of its
properties pursuant to the terms of any such indenture, agreement or other instrument (other than
this Agreement), or violate any law or, to the best of the Seller’s knowledge, any order, rule or
regulation applicable to the Seller of any court or of

A-1

 

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
knowledge, threatened against the Seller before any court, regulatory body, administrative agency
or other governmental instrumentality having jurisdiction over the Seller or its properties (i)
asserting the invalidity of this Agreement or any other Basic Document to which the Seller is a
party, (ii) seeking to prevent the consummation of any of the transactions contemplated by this
Agreement or any other Basic Document to which the Seller is a party or (iii) seeking any
determination or ruling that might materially and adversely affect the performance by the Seller of
its obligations under, or the validity or enforceability of, this Agreement or any other Basic
Document to which the Seller is a party.

               (vi) Valid Sale, Binding Obligation. This Agreement and the other Basic Documents to which the
Seller is a party, when duly executed and delivered by the other parties hereto and thereto, shall
constitute legal, valid and binding obligations of the Seller, enforceable against the Seller in
accordance with their respective terms, except as the enforceability thereof may be limited by
bankruptcy, insolvency, reorganization and similar laws now or hereafter in effect relating to or
affecting creditors’ rights generally and to general principles of equity (whether applied in a
proceeding at law or in equity).

               (vii) Chief Executive Office. The chief executive office of the Seller is located at 10550
Talbert Avenue, Fountain Valley, California 92708.

               (viii) No Consents. The Seller is not required to obtain the consent of any other party or any
consent, license, approval, registration, authorization, or declaration of or with any governmental
authority, bureau or agency in connection with the execution, delivery, performance, validity, or
enforceability of this Agreement or any other Basic Document to which it is a party that has not
already been obtained.

               (ix) Seller Information. No certificate of an officer, statement or document furnished in
writing or report delivered pursuant to the terms hereof by the Seller contains any untrue
statement of a material fact or omits to state any material fact necessary to make the certificate,
statement, document or report not misleading.

               (x) Ordinary Course. The transactions contemplated by this Agreement and the other Basic
Documents to which the Seller is a party are in the ordinary course of the Seller’s business.

               (xi) Solvency. The Seller is not insolvent, nor will the Seller be made insolvent by the
transfer of the Receivables, nor does the Seller contemplate any pending insolvency.

               (xii) Legal Compliance. The Seller is not in violation of, and the execution and delivery of
this Agreement and the other Basic Documents to which the Seller is a party by it and its
performance and compliance with the terms of this Agreement and the other Basic Documents to which
the Seller is a party will not constitute a violation with respect to, any order or decree of any
court or any order or regulation of any federal, state, municipal or

A-2

 

governmental agency having jurisdiction, which violation would materially and adversely affect the
Seller’s condition (financial or otherwise) or operations or any of the Seller’s properties or
materially and adversely affect the performance of any of its duties under the Basic Documents.

               (xiii) Creditors. The Seller represents and warrants that it did not sell the Receivables to
the Depositor with any intent to hinder, delay or defraud any of its creditors.

               (xiv) No Notice. The Seller represents and warrants that it acquired title to the Receivables
in good faith, without notice of any adverse claim.

               (xv) Bulk Transfer. The Seller represents and warrants that the transfer, assignment and
conveyance of the Receivables by the Seller pursuant to this Agreement are not subject to the bulk
transfer laws or any similar statutory provisions in effect in any applicable jurisdiction.

          (b)The Seller makes the following representations and warranties with respect to the
Receivables, on which the Depositor relies in accepting the Receivables and in transferring the
Receivables to the Issuer under the Sale and Servicing Agreement, and on which the Issuer relies in
pledging the same to the Indenture Trustee. Such representations and warranties speak as of the
execution and delivery of this Agreement as of the Closing Date, but shall survive the sale,
transfer and assignment of the Receivables to the Depositor, the subsequent sale, transfer and
assignment of the Receivables by the Depositor to the Issuer pursuant to the Sale and Servicing
Agreement and the pledge of the Receivables by the Issuer to the Indenture Trustee pursuant to the
Indenture.

               (i) Characteristics of Receivables. Each Receivable (A) was originated in the United States of
America by a Dealer located in the United States of America for the retail sale of a Financed
Vehicle in the ordinary course of such Dealer’s business and satisfied the Seller’s Credit and
Collection Policy as of the date of origination of the related Receivable, is payable in United
States dollars, has been fully and properly executed by the parties thereto, has been purchased by
the Seller from such Dealer under an existing Dealer Agreement and has been validly assigned by
such Dealer to the Seller, (B) has created or shall create a valid, subsisting and enforceable
first priority security interest in favor of the Seller in the Financed Vehicle, which security
interest is assignable by the Seller to the Depositor, by the Depositor to the Issuer, and by the
Issuer to the Indenture Trustee, (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, (D) provides for fixed level monthly payments (provided that the
payment in the last month of the term of the Receivable may be insignificantly different from the
level payments) that fully amortize the Amount Financed by maturity and yield interest at the APR
and (E) amortizes using the simple interest method.

               (ii) Compliance with Law. Each Receivable and the sale of the related Financed Vehicle
complied at the time it was originated or made, and at the time of execution of this Agreement
complies, in all material respects with all requirements of applicable federal, state and local
laws, rulings and regulations thereunder, including usury laws, the Federal Truth-in-Lending Act,
the Equal Credit Opportunity Act, the Fair Credit Billing Act, the Fair Credit

A-3

 

Reporting Act, the Fair Debt Collection Practices Act, the Federal Trade Commission Act, the
Magnuson-Moss Warranty Act, the Federal Reserve Board’s Regulations “B” and “Z”, the Servicemembers
Civil Relief Act, the Gramm-Leach-Bliley Act, state adaptations of the National Consumer Act and of
the Uniform Consumer Credit Code, and other consumer credit laws and equal credit opportunity and
disclosure laws; and each Dealer has represented to the Seller that such Dealer had all necessary
licenses and permits to originate such Receivables.

               (iii) Binding Obligation. Each Receivable represents the genuine, legal, valid and binding
payment obligation of the Obligor thereon, enforceable by the holder thereof in accordance with its
terms, except (A) as enforceability thereof may be limited by bankruptcy, insolvency,
reorganization or similar laws affecting the enforcement of creditors’ rights generally and by
equitable limitations on the availability of specific remedies, regardless of whether such
enforceability is considered in a proceeding in equity or at law and (B) as such Receivable may be
modified by the application after the Transfer Date of the Servicemembers Civil Relief Act.

               (iv) No Government Obligor. No Receivable is due from the United States of America or any
State or any agency, department, subdivision or instrumentality thereof.

               (v) Obligor Bankruptcy. According to the records of the Seller, as of the Cutoff Date, no
Obligor is the subject of a bankruptcy proceeding.

               (vi) Schedule of Receivables. The information set forth in Schedule A to this Agreement is
true and correct in all material respects as of the close of business on the Cutoff Date.

               (vii) Marking Records. By the Transfer Date, the Seller will have caused its computer and
accounting records relating to each Receivable to be clearly and unambiguously marked to show that
the Receivables have been sold to the Depositor by the Seller and transferred and assigned by the
Depositor to the Issuer in accordance with the terms of the Sale and Servicing Agreement and
pledged by the Issuer to the Indenture Trustee in accordance with the terms of the Indenture.

               (viii) Computer Tape. The computer tape regarding the Receivables made available by the Seller
to the Depositor is complete and accurate in all respects as of the Transfer Date.

               (ix) No Adverse Selection. The Receivables sold to the Depositor by the Seller were randomly
selected from those motor vehicle installment contracts in the Seller’s portfolio based upon the
satisfaction of the criteria set forth in the Receivables Purchase Agreement and no selection
procedures believed by the Seller to be adverse to the Noteholders or the Certificateholder were
utilized in selecting the Receivables.

               (x) Chattel Paper. Each Receivable constitutes chattel paper within the meaning of the UCC as
in effect in the state of origination.

               (xi) One Original. There is only one executed original of each Receivable.

A-4

 

               (xii) Receivables in Force. No Receivable has been satisfied, subordinated or rescinded, nor
has any Financed Vehicle been released from the Lien of the related Receivable in whole or in part.
None of the terms of any Receivable has been waived, altered or modified in any respect since its
origination, except by instruments or documents identified in the related Receivable File. No
Receivable has been modified as a result of the application of the Servicemembers Civil Relief Act.

               (xiii) Lawful Assignment. No Receivable has been originated in, or is subject to the laws of,
any jurisdiction the laws of which would make unlawful, void or voidable the sale, transfer and
assignment of such Receivable under this Agreement, the Sale and Servicing Agreement or the pledge
of such Receivable under the Indenture.

               (xiv) Title. It is the intention of the Seller that the transfers and assignments herein
contemplated constitute sales of the Receivables from the Seller to the Depositor and that the
beneficial interest in and title to the Receivables not be part of the debtor’s estate in the event
of the filing of a bankruptcy petition by or against the Seller under any bankruptcy law. No
Receivable, other than the Receivables identified in the Reconveyance Documents, has been sold,
transferred, assigned or pledged by the Seller to any Person other than to the Depositor or
pursuant to this Agreement (or by the Depositor to any other Person other than to the Issuer
pursuant to the Sale and Servicing Agreement). Except with respect to the Liens under the Conduit
Documents (which such Liens shall be released in accordance with provisions of the Reconveyance
Documents), immediately prior to the transfers and assignments herein contemplated, the Seller has
good and marketable title to each Receivable free and clear of all Liens, and, immediately upon the
transfer thereof, the Depositor shall have good and marketable title to each Receivable, free and
clear of all Liens and, immediately upon the transfer thereof from the Depositor to the Issuer
pursuant to the Sale and Servicing Agreement, the Issuer shall have good and marketable title to
each Receivable, free and clear of all Liens and, immediately upon the pledge thereof from the
Issuer to the Indenture Trustee pursuant to the Indenture, the Indenture Trustee shall have a first
priority perfected security interest in each Receivable.

               (xv) Security Interest in Financed Vehicle. Immediately prior to its sale, assignment and
transfer to the Depositor pursuant to this Agreement, each Receivable shall be secured by a validly
perfected first priority security interest in the related Financed Vehicle in favor of the Seller
as secured party, or all necessary and appropriate actions have been commenced that will result in
the valid perfection of a first priority security interest in such Financed Vehicle in favor of the
Seller as secured party within 120 days of the Closing Date, and the Seller further represents that
it will complete all such actions. The Lien Certificate for each Financed Vehicle shows, or if a
new or replacement Lien Certificate is being applied for with respect to such Financed Vehicle such
Lien Certificate shall be received within 120 days of the Closing Date and shall show, the Seller
named as the original secured party under each Receivable as the holder of a first priority
security interest in such Financed Vehicle. With respect to each Receivable for which the Lien
Certificate has not yet been returned from the Registrar of Titles, the Seller has received written
evidence that such Lien Certificate showing the Seller as first lienholder has been applied for.
Each Dealer’s ownership interest in any Receivable originated by such Dealer has been validly
assigned by the Dealer to the Seller. The Seller’s ownership interest in the Receivables and
security interest in the Financed Vehicles has

A-5

 

been validly assigned to the Depositor pursuant to this Agreement. The Seller has the legal right
to repossess or recover by legal process in its name the Financed Vehicle.

               (xvi) All Filings Made. All filings (including UCC filings, except for UCC releases required
to be filed in accordance with the Reconveyance Documents) required to be made in any jurisdiction
to give the Issuer a first perfected ownership interest in the Receivables and the Indenture
Trustee a first priority perfected security interest in the Receivables have been made.

               (xvii) No Defenses. No Receivable is subject to any right of rescission, setoff, counterclaim,
dispute or defense, including the defense of usury, whether arising out of transactions concerning
the Receivable or otherwise, and the operation of any terms of the Receivable or the exercise by
the Seller or the Obligor of any right under the Receivable will not render the Receivable
unenforceable in whole or in part, and no such right of rescission, setoff, counterclaim, dispute
or defense, including the defense of usury, has been asserted with respect thereto.

               (xviii) No Default. There has been no default, breach, violation or event permitting
acceleration under the terms of any Receivable (other than payment delinquencies of not more than
30 days), and no condition exists or event has occurred and is continuing that with notice, the
lapse of time or both would constitute a default, breach, violation or event permitting
acceleration under the terms of any Receivable, and there has been no waiver of any of the
foregoing.

               (xix) Insurance. The Seller, in accordance with its customary procedures, has determined that
the Obligor has obtained physical damage insurance covering each Financed Vehicle and, under the
terms of the related Receivable, the Obligor is required to maintain such insurance and to name the
Seller as a loss payee.

               (xx) Final Scheduled Maturity Date. No Receivable has a final scheduled payment date after
[                    ], 200[___].

               (xxi) Certain Characteristics of the Receivables. As of the applicable Cutoff Date, (A) each
Receivable had an original maturity of not less than 12 or more than 72 months and (B) no
Receivable was more than [___] days past due as of the Cutoff Date.

               (xxii) No Foreign Obligor. All of the Receivables are due from Obligors who are citizens, or
legal resident aliens, of the United States of America.

               (xxiii) No Extensions. The number or timing of scheduled payments has not been changed on any
Receivable on or before the Closing Date, as applicable, except as reflected on the computer tape
delivered in connection with the sale of the Receivables.

               (xxiv) Scheduled Payments. Each Obligor has been instructed to make all scheduled payments to
the Post Office Boxes. To the best knowledge of the Seller, each Obligor has paid the entire down
payment called for by the contract.

               (xxv) [Reserved]

A-6

 

               (xxvi) No Fleet Sales. No Receivable has been included in a “fleet” sale (i.e., a sale to any
single Obligor of more than five Financed Vehicles).

               (xxvii) Receivable Files. There is no more than one original copy of each of the documents or
instruments constituting the Receivable Files, and to the extent that an original copy has been
maintained, the Servicer has in its possession all such original copies that constitute or evidence
the Receivables. The Receivable Files that constitute or evidence the Receivables do not have any
marks or notations indicating that they have been pledged, assigned or otherwise conveyed by the
Seller to any Person other than the Depositor[, except for such Liens as have been released on or
before the Closing Date]. All financing statements filed or to be filed against the Seller in favor
of the Depositor in connection herewith describing the Receivables contain a statement to the
following effect: “A purchase of or security interest in any collateral described in this financing
statement, except as provided in the Receivables Purchase Agreement, will violate the rights of the
Depositor.”

               (xxviii) No Fraud or Misrepresentation. Each Receivable was originated by a Dealer and was
sold by the Dealer to the Seller, to the best of the Seller’s knowledge, without fraud or
misrepresentation on the part of such Dealer in either case.

               (xxix) Receivables Not Assumable. No Receivable is assumable by another person in a manner
which would release the Obligor thereof from such Obligor’s obligations to the Seller with respect
to such Receivable.

               (xxx) No Impairment. The Seller has not done anything to convey any right to any person that
would result in such person having a right to payments due under a Receivable or otherwise to
impair the rights of the Depositor in any Receivable or the proceeds thereof.

               (xxxi) Tax Liens. There is no Lien against any Financed Vehicle for delinquent taxes.

               (xxxii) No Corporate Obligor. All of the Receivables are due from Obligors who are natural
persons.

               (xxxiii) No Liens. No Liens or claims have been filed for work, labor, or materials relating
to a Financed Vehicle that are prior to, or equal or coordinate with, the security interest in the
Financed Vehicle granted by the related Receivable.

               (xxxiv) Servicing. Each Receivable has been serviced in conformity with all applicable laws,
rules and regulation and in conformity with the Seller’s policies and procedures which are
consistent with customary, prudent industry standards.

               (xxxv) APR. No Receivable has an APR of less than [___]% and the weighted average coupon on
the pool of Receivables is at least [___]%.

               (xxxvi) Remaining Term. Each Receivable has a remaining term of at least [___] months and no
more than [___] months.

A-7

 

               (xxxvii) Original Term. The weighted average original term for the Receivables is at least
[___] months.

               (xxxviii) Remaining Balance. Each Receivable has a remaining balance of at least $[                    ]
and not greater than $[                                        ].

               (xxxix) New Vehicles. At least [___]% of the aggregate principal balance of the Receivables
is secured by Financed Vehicles which were new at the date of origination.

               (xl) No Advances. No advances have been made to Obligors in order to meet any representation
and warranties herein set forth.

               (xli) No Repossessions. No Financed Vehicle has been repossessed on or prior to the applicable
Transfer Date.

               (xlii) No Omissions. There have been no material omissions or misstatements in any document
provided or statement made to the Depositor concerning the Receivables by or on behalf of the
Seller in connection with the transactions contemplated by this Agreement.

               (xliii) No Proceedings Pending. As of the Cutoff Date, there are no proceedings pending, or to
the best of the Seller’s knowledge, threatened, wherein the Obligor or any governmental agency has
alleged that any Receivable is illegal or unenforceable.

               (xliv) Dealer Agreements. Each Dealer from whom the Seller purchases Receivables has entered
into a Dealer Agreement with the Seller providing for the sale of Receivables from time to time by
such Dealer to the Seller.

               (xlv) Receivable Obligations. The Seller has duly fulfilled all obligations to be fulfilled on
its part under or in connection with the origination, acquisition and assignment of the
Receivables. To the best of the Seller’s knowledge, no notice to or consent from any Obligor is
necessary to effect the acquisition of the Receivables by the Indenture Trustee.

               (xlvi) Taxes. The sale, transfer, assignment and conveyance of the Receivables by the Seller
pursuant to this Agreement is not subject to and will not result in any tax, fee or governmental
charge payable by the Seller, the Issuer or the Indenture Trustee to any federal, state or local
government (“Transfer Taxes”) other than Transfer Taxes which have or will be paid by the Seller as
due. In the event the Issuer or the Indenture Trustee receives actual notice of any Transfer Taxes
arising out of the transfer, assignment and conveyance of the Receivables, on written demand by the
Issuer or the Indenture Trustee, or upon the Seller’s otherwise being given notice thereof by the
Issuer or the Indenture Trustee, the Seller shall pay, and otherwise indemnify and hold the Issuer
and the Indenture Trustee harmless, on an after-tax basis, from and against any and all such
Transfer Taxes (it being understood that the Noteholders, the Indenture Trustee and the Issuer
shall have no obligation to pay such Transfer Taxes).

A-8

 

               (xlvii) Computer Tape. The computer tape from which the selection of the Receivables being
acquired on the Closing Date was made available to the accountants that are providing a comfort
letter to the Noteholders in connection with the numerical information regarding the Receivables
and the Notes.

               (xlviii) No Future Disbursement. At the time each Receivable was acquired from the Dealer, the
Amount Financed was fully disbursed. There is no requirement for future advances of principal
thereunder, and, other than in connection with Dealer participations, all fees and expenses in
connection with the origination of such Receivable have been paid.

               (xlix) Physical Damage Insurance Policy. In connection with the purchase of each Receivable,
the Seller required the related Dealer to furnish evidence that the related Financed Vehicle was
covered by a physical damage insurance policy (i) in an amount at least equal to the lesser of (a)
the actual cash value of the related Financed Vehicle or (b) the unpaid principal balance owing on
such Receivable, (ii) naming the Seller as a loss payee and (iii) insuring against loss and damage
due to fire, theft, transportation, collision and other risks generally covered by comprehensive
and collision coverage.

               (l) Dealer Agreement. The Dealer that sold each Receivable to the Seller has entered into a
Dealer Agreement and such Dealer Agreement, together with the assignment and related documentation
signed by the Dealer, constitutes the entire agreement between the Seller and the related Dealer
with respect to the sale of such Receivable to the Seller. Each such Dealer Agreement is in full
force and effect and is the legal, valid and binding obligation of such Dealer; there have been no
material defaults by such Dealer with respect to such Receivable; the Seller has fully performed
all of its obligations under such Dealer Agreement; the Seller has not made any statements or
representations to such Dealer (whether written or oral) inconsistent with any term of such Dealer
Agreement; the Purchase Price (as specified in the applicable Dealer Agreement) for such Receivable
has been paid in full by the Seller, there is no other payment of principal due to such Dealer from
the Seller for the purchase of such Receivable; such Dealer has no right, title or interest in or
to any Receivable; there is no prior course of dealing between such Dealer and the Seller which
will materially and adversely affect the terms of such Dealer Agreement; and any payment owed to
such Dealer by the Seller is a corporate obligation of the Seller.

               (li) Condition of Financed Vehicle. Each Receivable requires the Obligor to maintain the
related Financed Vehicle in good and workable order.

               (lii) Condition of Financed Vehicle as of Transfer Date. To the best of the Seller’s
knowledge, each Financed Vehicle was properly delivered to the related Obligor in good repair,
without defects and in satisfactory order, and each Financed Vehicle is in good operating condition
and repair as of the Transfer Date.

               (liii) [Reserved]

               (liv) No Consumer Leases. No Receivable constitutes a “consumer lease” under either (a) the
UCC as in effect in the jurisdiction whose law governs the Receivable or (b) the Consumer Leasing
Act, 15 USC 1667.

A-9

 

               (lv) Balance as of Cutoff Date. The aggregate principal balance of the Receivables as of the
Cutoff Date is equal to $[                                        ].

A-10

 

EXHIBIT B

Form of Record Date Statement

B-1

 

 

EXHIBIT C

Form of Servicer’s Certificate

Collection Period:                                         

Distribution Date:                                         

Hyundai Auto Receivables Trust 200[__]

     The undersigned certifies that he is an officer of Hyundai Motor Finance Company, a California
corporation (“HMFC”) and that as such he is duly authorized to execute and deliver this certificate
on behalf of HMFC pursuant to Section 4.09 of the Sale and Servicing Agreement dated [                    ],
200[___] among Hyundai Auto Receivables Trust 200[___], as Issuer, Hyundai ABS Funding Corporation,
as Depositor, HMFC, as Seller and Servicer and
[                                        ], as Indenture Trustee (the “Sale and Servicing Agreement”) (all
capitalized terms used herein without definition have the respective meanings specified in the Sale
and Servicing Agreement) and further certifies that:

     1. The Servicer’s report for the period from                      to                      attached to this
certificate is complete and accurate and contains all information required by Section 4.09 of the
Sale and Servicing Agreement; and

     2. As of                                         , no defaults have occurred.

     IN WITNESS WHEREOF, I have fixed hereunto my signature this ___day of                                         .

	 	 	 	 	 
	 	HYUNDAI MOTOR FINANCE COMPANY,

as Servicer

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

C-1

 

 

EXHIBIT D

Extension Policy

D-1

 

 

SCHEDULE A

Schedule of Receivables

[Delivered to the Trust at Closing]

Sched. A-1

 

 

SCHEDULE B

Required Yield Supplement Overcollateralization Amount

     With respect to any Payment Date, the “Yield Supplement Overcollateralization Amount” is the
amount specified below:

	 	 	 
	 	 	Yield
	 	 	Supplement
	 	 	Overcollateralization
	Payment Date	 	Amount
	Closing Date
	 	$[                    ]

Sched. B-1

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