Document:

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                                                                   EXHIBIT 10.20

                                                                  EXECUTION COPY

                                SECOND AMENDMENT
                                     TO THE
                              AMENDED AND RESTATED
                             NOTE PURCHASE AGREEMENT
                 Arcadia Automobile Receivables Warehouse Trust

        THIS SECOND AMENDMENT TO THE AMENDED AND RESTATED NOTE PURCHASE
AGREEMENT dated as of November 4, 1999 (this "Amendment"), among ARCADIA
AUTOMOBILE RECEIVABLES WAREHOUSE TRUST (the "Issuer"), ARCADIA FINANCIAL LTD.
("Arcadia"), RECEIVABLES CAPITAL CORPORATION (a "Purchaser" or "RCC"), BANK OF
AMERICA, N.A. (formerly known as Bank of America National Trust and Savings
Association), as RCC Agent (in such capacity, the "RCC Agent") and as
Administrative Agent (in such capacity, the "Administrative Agent"), DELAWARE
FUNDING CORPORATION (a "Purchaser" or "DFC"), and MORGAN GUARANTY TRUST COMPANY
OF NEW YORK, as DFC Agent (the "DFC Agent").

        WHEREAS, the parties hereto wish to amend the Amended and Restated Note
Purchase Agreement dated as of July 21, 1998, as amended as of July 13, 1999 (as
amended and in effect from time to time, the "NOTE PURCHASE AGREEMENT"), among
the Issuer, Arcadia, the Purchasers, the RCC Agent and the DFC Agent to reduce
the minimum amount of any Note Increase from $7,000,000 to $5,000,000; and

        WHEREAS, in accordance with the provisions of Section 7.1(b) of the
Sale and Servicing Agreement and Section 902 of the Indenture, the consent of
the Purchasers is required for certain amendments to the Sale and Servicing
Agreement and the Indenture, respectively, and RCC and DFC desire to consent to
the provisions of Amendment No. 2 dated the date hereof to the Sale and
Servicing Agreement ("Sale Agreement Amendment"), by and among the Issuer,
Arcadia Receivables Finance Corp., AFL, the RCC Agent and the DFC Agent and the
Indenture Supplement dated the date hereof (the "Indenture Supplement"), among
the Issuer, the Trustee, the RCC Agent and the DFC Agent.

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

        SECTION 1. AMENDMENT OF SECTION 1. Clause (i) of the last sentence of
the third paragraph of Section 1 of the Note Purchase Agreement is hereby
amended by deleting the dollar amount "$7,000,000" and inserting in lieu
thereof the dollar amount "$5,000,000."

        SECTION 2. REPRESENTATIONS AND WARRANTIES. Each of Arcadia and the
Issuer represents and warrants that as of the date hereof no Event of Default
has occurred under the Sale and Servicing Agreement, and to the best of the
Issuer's or Arcadia's knowledge there is no set of circumstances existing that
with the passage of time, would constitute such an Event of Default or Servicer
Termination Event.

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        SECTION 3. CONSENT TO SALE AGREEMENT AMENDMENT AND INDENTURE SUPPLEMENT.
In accordance with the provisions Section 7.1(b) of the Sale and Servicing
Agreement and Section 902 of the Indenture, RCC and DFC hereby consent to the
provisions of the Sale Agreement Amendment and the Indenture Supplement.

        SECTION 4. EFFECTIVENESS. The amendments and consent provided for by
this Amendment shall become effective as of November 4, 1999, upon the receipt
by each Agent, in form and substance satisfactory to the RCC Agent and the DFC
Agent, of (a) this Amendment duly executed and delivered by each of the parties
hereto (and consented to by each of the required parties), (b) an opinion of
counsel to AFL and ARFC, dated the date hereof, addressed to each Agent, the
Security Insurer and each Purchaser, covering such matters as the RCC Agent or
the DFC Agent may reasonably request, and (c) duly executed counterparts of the
Sale Agreement Amendment and the Indenture Supplement.

        SECTION 5. NOTE PURCHASE AGREEMENT IN FULL FORCE AND EFFECT AS AMENDED.
Except as specifically amended hereby, all of the terms and conditions of the
Note Purchase Agreement shall remain in full force and effect and, except as
expressly provided herein, the effectiveness of this Amendment shall not operate
as, or constitute a waiver or modification of, any right, power or remedy of any
party to the Note Purchase Agreement. All references to the Note Purchase
Agreement in any other document or instrument shall be deemed to mean the Note
Purchase Agreement as amended by this Amendment. This Amendment shall not
constitute a novation of the Note Purchase Agreement, but shall constitute an
amendment thereof.

        SECTION 6. COUNTERPARTS. This Amendment may be executed in any number of
counterparts and by separate parties hereto on separate counterparts, each of
which when executed shall be deemed an original, but all such counterparts taken
together shall constitute one and the same instrument.

        SECTION 7. GOVERNING LAW. THIS AMENDMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS.

        SECTION 8. DEFINED TERMS. Capitalized terms used herein and not
otherwise defined shall have the meaning assigned to such terms in the Note
Purchase Agreement.

        SECTION 9. LIMITATION OF OWNER TRUSTEE LIABILITY. It is expressly
understood and agreed by the parties hereto that (a) this Amendment is executed
and delivered by Wilmington Trust Company, not individually or personally but
solely as Owner Trustee of the Issuer, in the exercise of the powers and
authority conferred and vested in it under the Trust Agreement, (b) each of the
representations, undertakings and agreements herein made on the part of the
Issuer is made and intended not as a personal representation, undertaking and
agreement by Wilmington Trust Company but is made and intended for the purpose
of binding only the Issuer and (c) under no circumstances shall Wilmington Trust
Company 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
Amendment or the other related documents.

                                        2
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        IN WITNESS WHEREOF, each Purchaser, the RCC Agent, the DFC Agent,
Arcadia and the Issuer have caused this Amendment to be duly executed by their
respective officers thereunto duly authorized as of the date first above
written.

                                      ARCADIA AUTOMOBILE RECEIVABLES
                                      TRUST

                                      By: Wilmington Trust Company, not in its
                                          individual capacity but solely as
                                          Owner Trustee

                                      By: /s/ Mary Kay Pupillo
                                         -------------------------------------
                                          Name:  Mary Kay Pupillo
                                          Title: Financial Services Officer

                                       ARCADIA FINANCIAL LTD.

                                       By: /s/ John A. Witham
                                          ------------------------------------
                                          Name:  John A. Witham
                                          Title: Executive Vice President and
                                                 Chief Financial Officer

                                       RECEIVABLES CAPITAL CORPORATION,
                                       as a Purchaser

                                       By: /s/ Stewart L. Cutler
                                          ------------------------------------
                                          Name:  STEWART L. CUTLER
                                          Title: Managing Director

                                       BANK OF AMERICA, N.A.,
                                       (formerly known as Bank of America
                                       National Trust and Savings Association),
                                       as Administrative Agent and RCC Agent

                                       By: /s/ Brian D. Krum
                                          ------------------------------------
                                          Name:  BRIAN D. KRUM
                                          Title: VICE PRESIDENT

[Signature Page to Second Amendment to the Amended and Restated Note Purchase
Agreement]

<PAGE>

                                       DELAWARE FUNDING CORPORATION,
                                       as a Purchaser

                                       By: Morgan Guaranty Trust Company of
                                           New York as attorney-in-fact for
                                           Delaware Funding Corporation

                                       By: /s/ Richard A. Burke
                                         -------------------------------------
                                         Name:   Richard A. Burke
                                         Title:  Vice President

                                       MORGAN GUARANTY TRUST COMPANY OF NEW
                                       YORK, as DFC Agent

                                       By: /s/ Richard A. Burke
                                         -------------------------------------
                                         Name:   Richard A. Burke
                                         Title:  Vice President

[Signature Page to Second Amendment to the Amended and Restated Note Purchase
Agreement]<PAGE>

                                                                  EXECUTION COPY
                              INDENTURE SUPPLEMENT
                                       TO
                         AMENDED AND RESTATED INDENTURE
                 Arcadia Automobile Receivables Warehouse Trust

      INDENTURE SUPPLEMENT dated as of November 4, 1999 (this "Indenture
Supplement"), among Arcadia Automobile Receivables Warehouse Trust, as issuer
(the "Issuer"), Norwest Bank Minnesota, National Association, as trustee and
collateral agent (the "Trustee"), Bank of America, N.A. (formerly known as Bank
of America National Trust and Savings Association), as administrative agent and
RCC agent, and Morgan Guaranty Trust Company of New York, as DFC agent, relating
to AMENDED AND RESTATED INDENTURE dated as of July 21, 1998, as amended as of
July 13, 1999 (the "Indenture"), between the Issuer and the Trustee. Capitalized
terms used in this Indenture Supplement and not otherwise defined herein shall
have the meanings assigned to such terms in the Indenture.

                                    RECITALS

      WHEREAS, pursuant to Section 902 of the Indenture, the Trustee and the
Agents, with the consent of the Holders, are authorized to enter into indenture
supplements; and

      WHEREAS, as of the date hereof, the Issuer, Arcadia Receivables Finance
Corp. (the "Seller"), Arcadia Financial Ltd., the Agents and the Trustee are
entering into Amendment No. 2 to Amended and Restated Sale and Servicing
Agreement (the "Sale Agreement Amendment") which provides, among other
things, for a reduction in the minimum amount of any Note Increase from
$7,000,000 to $5,000,000; and

      WHEREAS, the Issuer, the Trustee and the Agents desire to amend Section
401 of the Indenture to conform to the Sale Agreement Amendment; and

      WHEREAS, the Seller and Financial Security Assurance Inc. desire to
consent to this Indenture Supplement.

      NOW, THEREFORE, THIS INDENTURE SUPPLEMENT WITNESSETH that in consideration
of the premises and agreements contained herein, the parties hereto agree as
follows:

      SECTION 1. AMENDMENTS TO SECTION 401. Clause (i) of the last sentence of
the penultimate paragraph of Section 401 of the Indenture is hereby amended by
deleting the dollar amount "$7,000,000" and inserting in lieu thereof the dollar
amount "$5,000,000."

      SECTION 2. COUNTERPARTS; EFFECTIVENESS. (a) This Indenture Supplement may
be executed by the parties hereto in several counterparts, each of which shall
be deemed to be an original and all of which shall constitute together but one
and the same agreement.

<PAGE>

      (b) This Amendment shall become effective when the Trustee shall have
received (i) counterparts hereof of executed on behalf of the Issuer and the
Trustee, (ii) the consents of the Agents, the Noteholders and the Security
Insurer, to the terms of this Indenture Supplement, (iii) an opinion of counsel
to AFL, dated the date hereof, addressed to the Trustee and the Security
Insurer, to the effect that the execution of this Indenture Supplement is
permitted by the Indenture, (iv) evidence of notice to Standard & Poor's and
Moody's of this Indenture Supplement and (v) confirmation from each of Standard
& Poor's and Moody's that this Indenture Supplement will not result in a capital
charge to the Security Insurer.

      SECTION 3. GOVERNING LAW; ENTIRE AGREEMENT. THIS INDENTURE SUPPLEMENT
SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF
THE STATE OF NEW YORK. This Indenture Supplement and the Indenture (and all
exhibits, annexes and schedules thereto) constitute the entire understanding
among the parties hereto with respect to the subject matter hereof and supersede
any prior agreements, written or oral, with respect thereto.

      SECTION 4. HEADINGS. The various headings of this Indenture Supplement are
inserted for convenience only and shall not affect the meaning or interpretation
of this Indenture Supplement or any provisions hereof or thereof.

      SECTION 5. INDENTURE IN FULL FORCE AND EFFECT AS SUPPLEMENTED. Except as
specifically stated herein, all of the terms and conditions of the Indenture
shall remain in full force and effect. All reference to the Indenture in any
other document or instrument shall be deemed to mean the Indenture, as
supplemented by this Indenture Supplement. This Indenture Supplement shall not
constitute a novation of the Indenture, but shall constitute a supplement
thereto. The parties hereto agree to be bound by the terms and obligations of
the Indenture, as supplemented by this Indenture Supplement, as though the terms
and obligations of the Indenture were set forth herein.

      SECTION 6. LIMITATION OF OWNER TRUSTEE LIABILITY. It is expressly
understood and agreed by the parties hereto that (a) this Indenture
Supplement is executed and delivered by Wilmington Trust Company, not
individually or personally but solely as Owner Trustee of the Issuer, in the
exercise of the powers and authority conferred and vested in it under the
Trust Agreement, (b) each of the representations, undertakings and agreements
herein made on the part of the Issuer is made and intended not as a personal
representation, undertaking and agreement by Wilmington Trust Company but is
made and intended for the purpose of binding only the Issuer and (c) under no
circumstances shall Wilmington Trust Company 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 Supplement or the other
related documents.

<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Indenture
Supplement to be duly executed and delivered by their authorized officers, all
as of the date and year first above written.

                              ISSUER:

                              ARCADIA AUTOMOBILE RECEIVABLES
                              WAREHOUSE TRUST

                              By:  WILMINGTON TRUST COMPANY, not in
                                   its individual capacity but solely as
                                   Owner Trustee

                              By:  /s/  Mary Kay Pupillo
                                 -----------------------------------------
                                  Name:  Mary Kay Pupillo
                                  Title: Financial Services Officer

                              INDENTURE TRUSTEE:
                              NORWEST BANK MINNESOTA,
                              NATIONAL ASSOCIATION, not in its individual
                                capacity but as Indenture Trustee

                              By:  /s/  Eileen R. O'Connor
                                 -----------------------------------------
                                  Name:  Eileen R. O'Connor
                                  Title: Assistant Vice President

                              BANK OF AMERICA, N.A.,
                               (formerly known as Bank of America National
                                Trust and Savings Association)
                               as Administrative Agent and RCC Agent

                              By:  /s/  Brian D. Krum
                                 -----------------------------------------
                                  Name:  BRIAN D. KRUM
                                  Title: VICE PRESIDENT

                              MORGAN GUARANTY TRUST COMPANY
                              OF NEW YORK, as DFC Agent

                              By:  /s/  Richard A. Burke
                                 -----------------------------------------
                                  Name:  Richard A. Burke
                                  Title: Vice President

[Signature Page to Indenture Supplement to Amended and Restated Indenture]
<PAGE>

AGREED AND CONSENTED:

FINANCIAL SECURITY ASSURANCE INC.

By:  /s/   Errol Uhr
   -----------------------------------------
     Name:  ERROL UHR
     Title: MANAGING DIRECTOR

ARCADIA RECEIVABLES FINANCE CORP.

By:  /s/  John A. Witham
   -----------------------------------------
   Name:  John A. Witham
   Title: Senior Vice President
          and Chief Financial Officer

[Signature Page to Indenture Supplement to Amended and Restated Indenture]

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