Document:

EXHIBIT 4.1

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

                   CAPITAL AUTO RECEIVABLES ASSET TRUST 2000-2

                       Class A-1 6.593% Asset Backed Notes
                       Class A-2 6.510% Asset Backed Notes
                       Class A-3 6.460% Asset Backed Notes
                       Class A-4 6.460% Asset Backed Notes

             Floating Rate Variable Pay Asset Backed Revolving Notes

                   -------------------------------------------

                                    INDENTURE

                          Dated as of December 14, 2000

                   -------------------------------------------

                         BANK ONE, NATIONAL ASSOCIATION
                                Indenture Trustee

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

<PAGE>

                              CROSS-REFERENCE TABLE

          TIA                                             Indenture
      Section                                             Section
=============  =======================================  =======================
    310(a)(1)  .......................................  6.11
       (a)(2)  .......................................  6.11
       (a)(3)  .......................................  6.10
       (a)(4)  .......................................  6.14
          (b)  .......................................  6.11
          (c)  .......................................  N.A.
       311(a)  .......................................  6.12
          (b)  .......................................  6.12
          (c)  .......................................  N.A.
       312(a)  .......................................  7.1, 7.2
          (b)  .......................................  7.2
          (c)  .......................................  7.2
       313(a)  .......................................  7.4(a), 7.4(b)
       (b)(1)  .......................................  7.4(a)
       (b)(2)  .......................................  7.4(a)
          (c)  .......................................  7.4(a)
          (d)  .......................................  7.4(a)
       314(a)  .......................................  7.3(a), 3.9
          (b)  .......................................  3.6
       (c)(1)  .......................................  2.2, 2.9, 4.1, 11.1(a)
       (c)(2)  .......................................  11.1(a)
       (c)(3)  .......................................  11.1(a)
          (d)  .......................................  2.9, 11.1(b)
          (e)  .......................................  11.1(a)
          (f)  .......................................  11.1(a)
       315(a)  .......................................  6.1(b)
          (b)  .......................................  6.5
          (c)  .......................................  6.1(a)
          (d)  .......................................  6.2, 6.1(c)
          (e)  .......................................  5.13
   316(a)last
     sentence  .......................................  1.1
    (a)(1)(A)  .......................................  5.11
    (a)(1)(B)  .......................................  5.12
       (a)(2)  .......................................  Omitted
  316(b), (c)  .......................................  5.7
    317(a)(1)  .......................................  5.3(b)
       (a)(2)  .......................................  5.3(d)
          (b)  .......................................  3.3
       318(a)  .......................................  11.7
               N.A. means Not Applicable.
=============  =======================================  =======================

     Note: This cross  reference table shall not, for any purpose,  be deemed to
     be part of this Indenture.

                                       (i)

<PAGE>
<TABLE>
<CAPTION>

                                TABLE OF CONTENTS
                                                                                       Page

                                    ARTICLE I
                   DEFINITIONS AND INCORPORATION BY REFERENCE
<S>                                                                                    <C>
 1.1       Definitions...................................................................2
 1.2       Incorporation by Reference of Trust Indenture Act.............................2

                                   ARTICLE II
                                    THE NOTES

 2.1       Form..........................................................................3
 2.2       Execution, Authentication and Delivery........................................4
 2.3       Temporary Notes...............................................................5
 2.4       Registration; Registration of Transfer and Exchange of Notes..................5
 2.5       Mutilated, Destroyed, Lost or Stolen Notes....................................7
 2.6       Persons Deemed Noteholders....................................................8
 2.7       Payment of Principal and Interest.............................................8
 2.8       Cancellation of Notes.........................................................9
 2.9       Release of Collateral........................................................10
 2.10      Book-Entry Notes.............................................................10
 2.11      Notices to Clearing Agency...................................................11
 2.12      Definitive Notes.............................................................11
 2.13      Seller as Noteholder.........................................................11
 2.14      Tax Treatment................................................................11
 2.15      Special Terms Applicable to the Private Notes................................12

                                   ARTICLE III
                                    COVENANTS
 3.1       Payment of Principal and Interest............................................13
 3.2       Maintenance of Agency Office.................................................13
 3.3       Money for Payments To Be Held in Trust.......................................13
 3.4       Existence....................................................................15
 3.5       Protection of Trust Estate; Acknowledgment of Pledge.........................15
 3.6       Opinions as to Trust Estate..................................................16
 3.7       Performance of Obligations; Servicing of Receivables.........................17
 3.8       Negative Covenants...........................................................18
 3.9       Annual Statement as to Compliance............................................18
 3.10      Consolidation, Merger, etc., of Issuer; Disposition of Trust Assets..........19
 3.11      Successor or Transferee......................................................21

                                      (ii)

<PAGE>

 3.12      No Other Business............................................................21
 3.13      No Borrowing.................................................................21
 3.14      Guarantees, Loans, Advances and Other Liabilities............................22
 3.15      Servicer's Obligations.......................................................22
 3.16      Capital Expenditures.........................................................22
 3.17      Removal of Administrator.....................................................22
 3.18      Restricted Payments..........................................................22
 3.19      Notice of Events of Default..................................................23
 3.20      Further Instruments and Acts.................................................23
 3.21      Indenture Trustee's Assignment of Administrative Receivables and
           Warranty Receivables.........................................................23
 3.22      Representations and Warranties by the Issuer to the Indenture Trustee........23

                                   ARTICLE IV
                           SATISFACTION AND DISCHARGE
 4.1       Satisfaction and Discharge of Indenture......................................24
 4.2       Application of Trust Money...................................................25
 4.3       Repayment of Monies Held by Paying Agent.....................................25
 4.4       Duration of Position of Indenture Trustee....................................25

                                    ARTICLE V
                              DEFAULT AND REMEDIES
 5.1       Events of Default............................................................26
 5.2       Acceleration of Maturity; Rescission and Annulment...........................27
 5.3       Collection of Indebtedness and Suits for Enforcement by Indenture Trustee....28
 5.4       Remedies; Priorities.........................................................30
 5.5       Optional Preservation of the Receivables.....................................31
 5.6       Limitation of Suits..........................................................31
 5.7       Unconditional Rights of Noteholders To Receive Principal and Interest........32
 5.8       Restoration of Rights and Remedies...........................................33
 5.9       Rights and Remedies Cumulative...............................................33
 5.10      Delay or Omission Not a Waiver...............................................33
 5.11      Control by Noteholders.......................................................33
 5.12      Waiver of Past Defaults......................................................34
 5.13      Undertaking for Costs........................................................34
 5.14      Waiver of Stay or Extension Laws.............................................35
 5.15      Action on Notes..............................................................35
 5.16      Performance and Enforcement of Certain Obligations...........................35

                                      (iii)

<PAGE>
                                   ARTICLE VI
                              THE INDENTURE TRUSTEE

 6.1       Duties of Indenture Trustee..................................................36
 6.2       Rights of Indenture Trustee..................................................37
 6.3       Indenture Trustee May Own Notes..............................................39
 6.4       Indenture Trustee's Disclaimer...............................................39
 6.5       Notice of Defaults...........................................................39
 6.6       Reports by Indenture Trustee to Holders......................................39
 6.7       Compensation; Indemnity......................................................39
 6.8       Replacement of Indenture Trustee.............................................40
 6.9       Merger or Consolidation of Indenture Trustee.................................41
 6.10      Appointment of Co-Indenture Trustee or Separate Indenture Trustee............41
 6.11      Eligibility; Disqualification................................................43
 6.12      Preferential Collection of Claims Against Issuer.............................43
 6.13      Representations and Warranties of Indenture Trustee..........................43
 6.14      Indenture Trustee May Enforce Claims Without Possession of Notes.............44
 6.15      Suit for Enforcement.........................................................44
 6.16      Rights of Noteholders to Direct Indenture Trustee............................44

                                   ARTICLE VII
                         NOTEHOLDERS' LISTS AND REPORTS

 7.1       Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders.......45
 7.2       Preservation of Information, Communications to Noteholders...................45
 7.3       Reports by Issuer............................................................45
 7.4       Reports by Trustee...........................................................46

                                  ARTICLE VIII
                      ACCOUNTS, DISBURSEMENTS AND RELEASES

 8.1       Collection of Money..........................................................46
 8.2       Designated Accounts; Payments................................................47
 8.3       General Provisions Regarding Accounts........................................50
 8.4       Release of Trust Estate......................................................50
 8.5       Opinion of Counsel...........................................................51

                                   ARTICLE IX
                             SUPPLEMENTAL INDENTURES

 9.1       Supplemental Indentures Without Consent of Noteholders.......................51
 9.2       Supplemental Indentures With Consent of Noteholders..........................52
 9.3       Execution of Supplemental Indentures.........................................54
 9.4       Effect of Supplemental Indenture.............................................54
 9.5       Conformity with Trust Indenture Act..........................................55
 9.6       Reference in Notes to Supplemental Indentures................................55

                                      (iv)

<PAGE>

                                    ARTICLE X
                               REDEMPTION OF NOTES

 10.1      Redemption...................................................................55
 10.2      Form of Redemption Notice....................................................55
 10.3      Notes Payable on Redemption Date.............................................56

                                   ARTICLE XI
                                  MISCELLANEOUS

 11.1      Compliance Certificates and Opinions, etc....................................56
 11.2      Form of Documents Delivered to Indenture Trustee.............................58
 11.3      Acts of Noteholders..........................................................59
 11.4      Notices, etc., to Indenture Trustee, Issuer and Rating Agencies..............60
 11.5      Notices to Noteholders; Waiver...............................................60
 11.6      Alternate Payment and Notice Provisions......................................61
 11.7      Conflict with Trust Indenture Act............................................61
 11.8      Effect of Headings and Table of Contents.....................................61
 11.9      Successors and Assigns.......................................................61
 11.10     Severability.................................................................62
 11.11     Benefits of Indenture........................................................62
 11.12     Legal Holidays...............................................................62
 11.13     GOVERNING LAW................................................................62
 11.14     Counterparts.................................................................62
 11.15     Recording of Indenture.......................................................63
 11.16     No Recourse..................................................................63
 11.17     No Petition..................................................................63
 11.18     Inspection...................................................................64
 11.19     Indemnification by and Reimbursement of the Servicer.........................64

Exhibit A          -    Location of Schedule of Receivables
Exhibit B          -    Form of Note Depository Agreement
Exhibit C-1        -    Form of Offered Class A Asset Backed Note
Exhibit C-2        -    Form of Variable Pay Asset Backed Revolving Note
Exhibit C-3        -    Form of Class A-1 Asset Backed Note
Exhibit D          -    Rule 144A Certificate

</TABLE>

                                       (v)

<PAGE>

     INDENTURE,  dated as of December 14, 2000, between CAPITAL AUTO RECEIVABLES
ASSET TRUST 2000-2,  a Delaware  business  trust (the  "Issuer"),  and BANK ONE,
NATIONAL  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  Secured  Parties  and the  Holders  of the
Certificates (only to the extent expressly provided herein):

                                 GRANTING CLAUSE

     The Issuer hereby  Grants to the Indenture  Trustee at the Closing Date, as
trustee  for the benefit of the Secured  Parties  (only to the extent  expressly
provided herein),  (a) all of the Issuer's right,  title and interest in, to and
under the Receivables  listed on the Schedule of Receivables which is on file at
the  locations  listed  on  Exhibit  A hereto  and (i) in the case of  Scheduled
Interest  Receivables,  all monies due  thereon on and after the Cutoff Date and
(ii) in the case of Simple Inter est Receivables, all monies received thereon on
and after the Cutoff Date,  in each case  exclusive of any amounts  allocable to
the premium for  physical  damage  insurance  force-placed  by the  Servicer and
covering  any related  Financed  Vehicle;  (b) the interest of the Issuer in the
security  interests in the Financed Vehicles granted by Obligors pursuant to the
Receivables  and,  where  permitted  by law,  any  accessions  thereto;  (c) the
interest of the Issuer in any  proceeds  with  respect to the  Receivables  from
claims on any physical damage, credit life, credit disability or other insurance
policies  covering  Financed  Vehicles or Obligors (except for those Receivables
originated  in  Wisconsin);  (d) the interest of the Issuer in any proceeds with
respect to the Receivables from recourse against dealers thereon; (e) all right,
title and interest in all funds on deposit  from time to time in the  Collection
Account, the Note Distribution Account, the Certificate Distribution Account and
the Accumulation Account; (f) all right, title and interest of the Issuer in, to
and  under the Trust  Sale and  Servicing  Agreement  (including  all  rights of
Capital Auto  Receivables,  Inc.  ("CARI" or the "Seller") under the Pooling and
Servicing  Agreement  assigned  to the  Issuer  pursuant  to the Trust  Sale and
Servicing Agreement); (g) all right, title and interest of the Issuer in, to and
under any  Third  Party  Instrument;  and (h) all  present  and  future  claims,
demands,  causes 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,  voluntary or involuntary,  into cash or other liquid  property,
all cash proceeds,  accounts,  accounts receivable,  notes, drafts, acceptances,
chattel  paper,  checks,  deposit  accounts,   insurance  proceeds,   investment
property, general intangibles, condemnation awards, rights to payment of any and
every kind and other forms of obligations and receivables, instruments and other
property  which at any time  constitute  all or part of or are  included  in the
proceeds of any of the foregoing (collectively, the "Collateral").

                                        1

<PAGE>

     The foregoing Grant is made in trust to secure the Secured  Obligations and
the payment of the  Certificate  Balance and interest on, and any other  amounts
owing in respect of, the  Certificates,  equally and ratably without  prejudice,
priority or  distinction,  and to secure  compliance with the provisions of this
Indenture,  all as provided in this  Indenture.  This  Indenture  constitutes  a
security agreement under the UCC.

     The foregoing  Grant  includes all rights,  powers and options (but none of
the  obligations,  if any) of the  Issuer  under  any  agreement  or  instrument
included in the  Collateral,  including the immediate  and  continuing  right to
claim for, collect, receive and give receipt for principal and interest payments
in respect of the  Receivables  included in the  Collateral and all other monies
payable  under  the   Collateral,   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  Issuer  or  otherwise  and
generally to do and receive anything that the Issuer is or may be entitled to do
or receive under or with respect to the Collateral.

     The  Indenture  Trustee,  as trustee on behalf of the  Secured  Parties and
(only  to  the  extent  expressly   provided  herein)  the   Certificateholders,
acknowledges  such  Grant  and  accepts  the  trusts  under  this  Indenture  in
accordance with the provisions of this Indenture.

                                    ARTICLE I
                   DEFINITIONS AND INCORPORATION BY REFERENCE

     SECTION 1.1 Definitions.  Certain  capitalized terms used in this Indenture
shall have the respective  meanings assigned them in Part I of Appendix A to the
Trust Sale and  Servicing  Agreement  (as amended from time to time,  the "Trust
Sale and Servicing  Agreement")  dated as of the date hereof,  among the Issuer,
CARI and General Motors Acceptance  Corporation ("GMAC"). All references in this
Indenture  to  Articles,  Sections,  subsections  and  exhibits  are to the same
contained in or attached to this Indenture unless otherwise specified. All terms
defined in this  Indenture  shall  have the  defined  meanings  when used in any
certificate,  notice,  Note or other document made or delivered  pursuant hereto
unless otherwise defined therein. The rules of construction set forth in Part II
of such Appendix A shall be applicable to this Indenture.

     SECTION 1.2  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.

                                        2

<PAGE>

     "indenture security holder" means a Noteholder.

     "indenture to be qualified" means this Indenture.

     "indenture 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 reference to another statute or defined by a Commission rule have the
respective meanings assigned to them by such definitions.

                                   ARTICLE II
                                    THE NOTES

     SECTION 2.1 Form.

     (a) Each of the  Class  A-2  Notes,  the  Class A-3 Notes and the Class A-4
Notes,  together,  in each case,  with the Indenture  Trustee's  certificate  of
authentication,  shall be substantially in the form set forth in Exhibit C-1 and
each of the Variable Pay Revolving Notes,  together with the Indenture Trustee's
certificate of  authentication,  shall be substantially in the form set forth in
Exhibit  C-2 and each of the  Class  A-1  Notes,  together  with  the  Indenture
Trustee's certificate of authentication,  shall be substantially in the form set
forth in Exhibit C-3, in each case with such appropriate insertions,  omissions,
substitutions  and  other  variations  as are  required  or  permitted  by  this
Indenture,  and each such Note may have such letters,  numbers or other marks of
identification  and  such  legends  or  endorsements   placed  thereon  as  may,
consistently  herewith,  be determined by the officers  executing such Notes, as
evidenced by their  execution 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 the Note.

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

     (c) The terms of each class of Notes as provided  for in Exhibits  C-1, C-2
and C-3 hereto are part of the terms of this Indenture.

                                        3

<PAGE>

     SECTION 2.2 Execution, Authentication and Delivery.

     (a) Each Note  shall be dated the date of its  authentication  and shall be
issuable  as a  registered  Note in the  minimum  denomination  of $1,000 and in
integral multiples thereof (except,  if applicable,  for one Note representing a
residual portion of each class which may be issued in a different denomination).

     (b) 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.

     (c) 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
office  prior to the  authentication  and delivery of such Notes or did not hold
such office at the date of such Notes.

     (d) The Indenture Trustee, in exchange for the Grant of the Receivables and
the  other  components  of the  Trust,  simultaneously  with  the  Grant  to the
Indenture  Trustee of the  Receivables,  and the  constructive  delivery  to the
Indenture  Trustee of the Receivables  Files and the other components and assets
of the Trust, shall cause to be authenticated and delivered to or upon the order
of the  Issuer,  Notes  for  original  issue in  aggregate  principal  amount of
$2,000,284,000,  comprised  of (i) Class A-1  Notes in the  aggregate  principal
amount of $463,000,000,  (ii) Class A-2 Notes in the aggregate  principal amount
of  $362,000,000,  (iii) Class A-3 Notes in the  aggregate  principal  amount of
$267,000,000,  (iv)  Class  A-4  Notes  in the  aggregate  principal  amount  of
$351,284,000,  and (v) the Initial  Variable Pay Revolving Note in the aggregate
initial principal amount of $557,000,000.  The aggregate principal amount of all
Notes outstanding at any time may not exceed $2,000,284,000,  except as provided
in Section 2.5.

     (e) On the  Targeted  Final  Distribution  Date for  each  class of Class A
Notes,  an  Incremental  Advance  under any Variable Pay  Revolving  Note may be
obtained as set forth in Section 2.06 of the Trust Sale and Servicing Agreement.
If  the  Incremental  Advance  will  not  be  obtained  from  the  Holder  of an
outstanding  Variable Pay  Revolving  Note,  then (upon order of the Seller) the
Issuer shall execute and the Indenture  Trustee shall cause to be  authenticated
and delivered an additional  class of Variable Pay  Revolving  Notes.  Each such
order shall set forth:

          (i) the designation of the particular  class (which shall  distinguish
     such class from all other classes);

          (ii)  the  aggregate  principal  amount  of  the  class  which  may be
     authenticated   and  delivered  under  this  Indenture  (except  for  Notes
     authenticated  and  delivered  upon  registration  and  transfer  of, or in
     exchange  for, or in lieu of,  other  Notes of such class  pursuant to this
     Indenture);

                                        4

<PAGE>

          (iii) the Interest Rate for such class; and

          (iv) any other  terms or  provisions  of such class which shall not be
     inconsistent with the provisions of this Indenture.

     (f) No Notes 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 set forth in Exhibit
C-1,  Exhibit  C-2, or Exhibit  C-3, as  applicable,  executed by the  Indenture
Trustee by the manual  signature  of one of its  Authorized  Officers,  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 2.3 Temporary Notes.

     (a) Pending the  preparation  of Definitive  Notes,  if any, the Issuer may
execute,  and upon  receipt  of an Issuer  Order  the  Indenture  Trustee  shall
authenticate and deliver, such Temporary Notes which 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  as are
consistent with the terms of this Indenture as the officers executing such Notes
may determine, as evidenced by their execution of such Notes.

     (b) 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  Agency  Office  of the  Issuer to be
maintained as provided in Section 3.2,  without charge to the  Noteholder.  Upon
surrender for  cancellation of any one or more Temporary Notes, the Issuer shall
execute and the  Indenture  Trustee shall  authenticate  and deliver in exchange
therefor  a  like   principal   amount  of   Definitive   Notes  of   authorized
denominations.  Until so delivered in exchange, the Temporary Notes shall in all
respects be entitled to the same  benefits  under this  Indenture as  Definitive
Notes.

     SECTION 2.4 Registration; Registration of Transfer and Exchange of Notes.

     (a) The  Issuer  shall  cause  to be kept  the  Note  Register,  comprising
separate registers for each class of Notes, in which, subject to such reasonable
regulations  as the  Issuer may  prescribe,  the Issuer  shall  provide  for the
registration of the Notes and the registration of transfers and exchanges of the
Notes.  The  Indenture  Trustee  shall  initially be the Note  Registrar for the
purpose of registering the Notes and transfers of the Notes as herein  provided.
Upon any resignation of any Note Registrar,  the Issuer shall promptly appoint a
successor  Note  Registrar  or,  if it elects  not to make such an  appointment,
assume the duties of the Note Registrar.

                                        5

<PAGE>

     (b) 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.  The Indenture Trustee shall have
the right to inspect  the Note  Register at all  reasonable  times and to obtain
copies  thereof.  The  Indenture  Trustee  shall  have the  right to rely upon a
certificate  executed on behalf of the Note  Registrar by an  Executive  Officer
thereof  as to the names and  addresses  of the  Noteholders  and the  principal
amounts and number of such Notes.

     (c)  Upon  surrender  for  registration  of  transfer  of any  Note  at the
Corporate  Trust  Office of the  Indenture  Trustee or the Agency  Office of the
Issuer (and  following  the  delivery,  in the former case, of such Notes to the
Issuer by the  Indenture  Trustee),  the Issuer  shall  execute,  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 in any authorized denominations, of a like aggregate principal amount.

     (d) At the option of the Noteholder, Notes may be exchanged for other Notes
of the same class in any authorized denominations, of a like aggregate principal
amount,  upon  surrender of such Notes to be exchanged  at the  Corporate  Trust
Office  of the  Indenture  Trustee  or the  Agency  Office  of the  Issuer  (and
following the  delivery,  in the former case, of such Notes to the Issuer by the
Indenture  Trustee),  the Issuer shall execute,  and the Indenture Trustee shall
authenticate  and the Noteholder shall obtain from the Indenture  Trustee,  such
Notes which the Noteholder making the exchange is entitled to receive.

     (e) All Notes issued upon any registration of transfer or exchange of other
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.

     (f) 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 and the Note Registrar,
duly executed by the Holder thereof or such Holder's attorney duly authorized in
writing,  with such signature  guaranteed by a commercial  bank or trust company
located, or having a correspondent  located, in the City of New York or the city
in which the Corporate Trust Office of the Indenture Trustee is located, or by a
member firm of a national securities  exchange,  and such other documents as the
Indenture Trustee may require.

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

                                        6

<PAGE>

     (h) The  preceding  provisions  of this  Section 2.4  notwithstanding,  the
Issuer  shall  not be  required  to  transfer  or make  exchanges,  and the Note
Registrar need not register transfers or exchanges, of Notes that: (i) have been
selected for redemption  pursuant to Article X, if  applicable;  or (ii) are due
for repayment  within 15 days of submission to the Corporate Trust Office or the
Agency Office.

     SECTION 2.5 Mutilated, Destroyed, Lost or Stolen Notes.

     (a) If (i) any mutilated Note is surrendered to the Indenture  Trustee,  or
the Indenture  Trustee receives evidence to its satisfaction of the destruction,
loss or theft of any Note, and (ii) there is delivered to the Indenture  Trustee
such  security or  indemnity as may be required by it to hold the Issuer and the
Indenture  Trustee harmless,  then, in the absence of notice to the Issuer,  the
Note  Registrar or the  Indenture  Trustee that such Note has been acquired by a
bona fide purchaser,  the Issuer shall execute and upon the Issuer's request the
Indenture Trustee shall authenticate and deliver,  in exchange for or in lieu of
any such mutilated, destroyed, lost or stolen Note, a replacement Note of a like
class  and  aggregate  principal  amount;  provided,  however,  that if any such
destroyed,  lost or stolen Note, but not a mutilated Note,  shall have become or
within  seven  days  shall be due and  payable,  or shall  have been  called for
redemption,  instead of issuing a replacement  Note, the Issuer may make payment
to the Holder of such  destroyed,  lost or stolen Note when so due or payable or
upon the Redemption Date, if applicable, without surrender thereof.

     (b) If, after the delivery of a replacement Note or payment in respect of a
destroyed, lost or stolen Note pursuant to subsection (a), 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 (i) any Person
to whom it was delivered,  (ii) the Person taking such replacement Note from the
Person to whom such  replacement  Note was  delivered;  or (iii) any assignee of
such  Person,  except a bona fide  purchaser,  and the Issuer and the  Indenture
Trustee  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.

     (c) In  connection  with the  issuance of any  replacement  Note under this
Section  2.5, 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 all fees and
expenses of the Indenture Trustee) connected therewith.

     (d) Any duplicate  Note issued  pursuant to this Section 2.5 in replacement
for 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 found at any time or be enforced by any
Person,  and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.

                                        7

<PAGE>

     (e) The provisions of this Section 2.5 are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Notes.

     SECTION  2.6  Persons  Deemed  Noteholders.  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 Noteholder for
the purpose of receiving  payments of principal of and interest on such Note and
for all other  purposes  whatsoever,  whether or not such Note be  overdue,  and
neither the  Issuer,  the  Indenture  Trustee nor any agent of the Issuer or the
Indenture Trustee shall be affected by notice to the contrary.

     SECTION 2.7 Payment of Principal and Interest.

     (a) Interest on each class of Notes shall accrue in the manner set forth in
Exhibit  C-1,  Exhibit  C-2, or Exhibit C-3, as  applicable,  at the  applicable
Interest  Rate for such class and will be due and  payable on each  Distribution
Date in  accordance  with the  priorities  set  forth  in  Section  8.2(c).  Any
instalment  of  interest  payable on any Note shall be  punctually  paid or duly
provided  for by a deposit by or at the  direction  of the Issuer  into the Note
Distribution  Account on the applicable  Distribution  Date and shall be paid to
the  Person  in whose  name  such  Note (or one or more  Predecessor  Notes)  is
registered on the applicable 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;  provided,  however,  that,  unless and until Definitive Notes have
been issued  pursuant to Section 2.12,  with respect to Notes  registered on the
applicable  Record Date in the name of the Note  Depository  (initially,  Cede &
Co.),  payment shall be made by wire transfer in immediately  available funds to
the account  designated by the Note  Depository;  provided,  further,  that with
respect to any  Private  Notes,  upon  written  request  of the Holder  thereof,
payment shall be made by wire  transfer of  immediately  available  funds to the
account designated by such Holder until further written notice from such Holder.

     (b) Prior to the  occurrence  of an Event of Default and a  declaration  in
accordance  with Section 5.2(a) that the Notes have become  immediately  due and
payable,  the  principal  of each class of Notes shall be payable in full on the
Final  Scheduled  Distribution  Date for such class and,  to the extent of funds
available therefor,  in instalments on the Distribution Dates (if any) preceding
the Final  Scheduled  Distribution  Date for such  class,  in the amounts and in
accordance  with the  priorities  set forth in Section  8.2(c)(ii) or (iii),  as
applicable.  All principal  payments on each class of Notes on any  Distribution
Date shall be made pro rata to the  Noteholders of such class entitled  thereto.
Any instalment of principal payable on any Note shall be punctually paid or duly
provided  for by a deposit by or at the  direction  of the Issuer  into the Note
Distribution  Account on the applicable  Distribution  Date and shall be paid to
the  Person  in whose  name  such  Note (or one or more  Predecessor  Notes)  is
registered on the applicable Record Date, by check mailed first-class,

                                        8

<PAGE>

postage  prepaid to such Person's  address as it appears on the Note Register on
such Record Date; provided, however, that, (A) unless and until Definitive Notes
have been issued pursuant to Section 2.12,  with respect to Notes  registered on
the Record  Date in the name of the Note  Depository,  payment  shall be made by
wire transfer in immediately  available  funds to the account  designated by the
Note Depository and (B) with respect to any Private Notes,  upon written request
of the Holder  thereof,  payment shall be made by wire  transfer of  immediately
available  funds to the account  designated by such Holder until further written
notice from such Holder,  except for, in each case: (i) the final  instalment of
principal  on any Note;  and (ii) the  Redemption  Price for the Notes  redeemed
pursuant  to Section  10.1,  which,  in each case,  shall be payable as provided
herein.  The funds  represented  by any such  checks in respect of  interest  or
principal returned undelivered shall be held in accordance with Section 3.3.

     (c) From and after the  occurrence of an Event of Default and a declaration
in accordance with Section 5.2(a) that the Notes have become immediately due and
payable,  until such time as all Events of Default  have been cured or waived as
provided in Section 5.2(b),  all principal  payments shall be allocated pro rata
among the Holders of all of the Notes on the basis of the  respective  aggregate
unpaid principal balances of Notes held by such Holders.

     (d) With respect to any Distribution  Date on which the final instalment of
principal and interest on a class of Notes is to be paid, the Indenture  Trustee
shall notify each  Noteholder  of such class of record as of the Record Date for
such Distribution Date of the fact that the final instalment of principal of and
interest on such Note is to be paid on such  Distribution  Date. With respect to
any such class of Notes,  such  notice  shall be sent (i) on such Record Date by
facsimile,  if Book-Entry  Notes are  outstanding;  or (ii) not later than three
Business  Days after such  Record Date in  accordance  with  Section  11.5(a) if
Definitive Notes are  outstanding,  and shall specify that such final instalment
shall be payable  only upon  presentation  and  surrender of such Note and shall
specify the place where such Note may be presented and  surrendered  for payment
of such in stalment and the manner in which such payment shall be made.  Notices
in  connection  with  redemptions  of Notes  shall be mailed to  Noteholders  as
provided in Section 10.2.  Within sixty days of the  surrender  pursuant to this
Section 2.7(d) or cancellation  pursuant to Section 2.8 of all of the Notes of a
particular  class, the Indenture  Trustee if requested shall provide each of the
Rating  Agencies with written  notice  stating that all Notes of such class have
been surrendered or canceled.

     SECTION 2.8  Cancellation  of Notes.  All Notes  surrendered  for  payment,
redemption,  exchange or  registration  of transfer shall, if surrendered to any
Person other than the Indenture  Trustee,  be delivered to the Indenture Trustee
and shall be promptly canceled by the Indenture  Trustee.  The Issuer may at any
time deliver to the  Indenture  Trustee for  cancellation  any Notes  previously
authenticated and delivered  hereunder which the Issuer may have acquired in any
manner whatsoever,  and all Notes so delivered shall be promptly canceled by the
Indenture Trustee. No Notes shall be authenticated in lieu of or in exchange for
any Notes  canceled  as  provided  in this  Section  2.8,  except  as  expressly
permitted by this Indenture. All canceled Notes may be held or

                                        9

<PAGE>

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,  however,  that
such Issuer Order is timely and the Notes have not been  previously  disposed of
by the Indenture Trustee. The Indenture Trustee shall certify to the Issuer upon
request  that  surrendered  Notes  have  been  duly  canceled  and  retained  or
destroyed, as the case may be.

     SECTION 2.9 Release of  Collateral.  The  Indenture  Trustee  shall release
property  from the lien of this  Indenture  other than as  permitted by Sections
3.21, 8.2, 8.4 and 11.1,  only upon receipt of an Issuer Request  accompanied by
an Officer's  Certificate,  an Opinion of Counsel (to the extent required by the
TIA) and  Independent  Certificates  in  accordance  with TIA  ss.ss.314(c)  and
314(d)(1).

     SECTION 2.10  Book-Entry  Notes.  Subject to Section 2.15, the Notes,  upon
original  issuance,  shall be issued in the form of a typewritten  Note or Notes
representing  the Book- Entry Notes,  to be delivered  to The  Depository  Trust
Company,  as the initial Clearing Agency,  or its custodian,  by or on behalf of
the Issuer.  Such Note or Notes shall be  registered on the Note Register in the
name of the Note  Depository,  and no Note Owner shall receive a Definitive Note
representing  such Note  Owner's  interest  in such Note,  except as provided in
Section  2.12.  Unless and until the  Definitive  Notes have been issued to Note
Owners pursuant to Section 2.12:

     (a) the provisions of this Section 2.10 shall be in full force and effect;

     (b) 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  such  Notes  and  the  giving  of
instructions or directions hereunder) as the sole Holder of such Notes and shall
have no obligation to the Note Owners;

     (c) to the extent that the  provisions  of this Section 2.10  conflict with
any other  provisions  of this  Indenture,  the  provisions of this Section 2.10
shall control;

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

     (e) 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 Notes, the Clearing Agency shall be
deemed to represent such percentage only to the

                                       10

<PAGE>

extent  that it has (i)  received  instructions  to such effect from Note Owners
and/or Clearing Agency Participants owning or representing,  respectively,  such
required  percentage  of the  beneficial  interest  in the  Notes;  and (ii) 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 Note Owners pursuant to Section
2.12,  the  Indenture  Trustee  shall give all such  notices and  communications
specified  herein to be given to  Noteholders  to the Clearing  Agency and shall
have no other obligation to the 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 Notes  (other than the Private  Notes) and
the Issuer is unable to locate a qualified successor; (ii) the Administrator, at
its option, advises the Indenture Trustee in writing that it elects to terminate
the book-entry system through the Clearing Agency; or (iii) after the occurrence
of  an  Event  of  Default  or a  Servicer  Default,  Note  Owners  representing
beneficial  interests  aggregating at least a majority of the Outstanding Amount
of such Notes advise the Clearing  Agency in writing that the contin uation of a
book-entry system through the Clearing Agency is no longer in the best interests
of the Note Owners,  then the  Clearing  Agency shall notify all Note Owners 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 Note or Notes representing
the  Book-Entry  Notes  by the  Clearing  Agency,  accompanied  by  registration
instructions,   the  Issuer  shall  execute  and  the  Indenture  Trustee  shall
authenticate  the Definitive  Notes in accor dance with the  instructions of the
Clearing Agency. None of the Issuer, the Note Registrar or the Indenture Trustee
shall  be  liable  for  any  delay  in  delivery  of such  instructions  and may
conclusively  rely on, and shall be protected in relying on, such  instructions.
Upon the issuance of Definitive Notes, the Indenture Trustee shall recognize the
Holders of the Definitive Notes as Noteholders.

     SECTION  2.13 Seller as  Noteholder.  The Seller in its  individual  or any
other  capacity  may  become  the owner or pledgee of Notes of any class and may
otherwise deal with the Issuer or its  affiliates  with the same rights it would
have if it were not the Seller.

     SECTION  2.14 Tax  Treatment.  The Seller  and the  Indenture  Trustee,  by
entering  into this  Indenture,  and the  Noteholders,  by acquiring any Note or
interest  therein,  (i) express  their  intention  that the Notes  qualify under
applicable tax law as indebtedness  secured by the  Collateral,  and (ii) unless
otherwise required by appropriate taxing  authorities,  agree to treat the Notes
as  indebtedness  secured by the  Collateral  for the purpose of federal  income
taxes, state and local income and franchise taxes, Michigan single business tax,
and any other taxes imposed upon, measured by or based upon gross or net income.

                                       11

<PAGE>

     SECTION 2.15 Special Terms Applicable to the Private Notes.

     (a) None of the  Private  Notes have been or will be  registered  under the
Securities  Act of 1933, as amended (the  "Securities  Act"),  or the securities
laws  of any  other  jurisdiction.  Consequently,  the  Private  Notes  are  not
transferable   other  than  pursuant  to  an  exemption  from  the  registration
requirements of the Securities Act and  satisfaction of certain other provisions
specified  herein.  The Class A-1 Notes and an interest in the Initial  Variable
Pay Revolving Note are being sold in private placements pursuant to Section 4(2)
of the Securities Act on the date hereof. Each additional Variable Pay Revolving
Note, or an interest therein,  will be sold in a private  placement  pursuant to
Section  4(2) of the  Securities  Act on or about the date of issuance  thereof.
Thereafter,  no further sale,  pledge or other  transfer of any Private Note (or
interest  therein) may be made by any person unless either (i) such sale, pledge
or other transfer is made to a "qualified  institutional  buyer" that executes a
certificate,  in the form attached  hereto as Exhibit D or otherwise in form and
substance  satisfactory to the Indenture  Trustee and the Seller,  to the effect
that (A) it is a  "qualified  institutional  buyer" as  defined  under Rule 144A
under the  Securities  Act,  acting for its own account or the accounts of other
"qualified institutional buyers" as defined under Rule 144A under the Securities
Act, and (B) it is aware that the transferor of such Note intends to rely on the
exemption from the  registration  requirements of the Securities Act provided by
Rule 144A under the Securities Act, or (ii) such sale,  pledge or other transfer
is otherwise made in a transaction exempt from the registration  requirements of
the Securities  Act, in which case (A) the Indenture  Trustee shall require that
both the prospective  transferor and the prospective  transferee  certify to the
Indenture Trustee and the Seller in writing the facts surrounding such transfer,
which certification shall be in form and substance satisfactory to the Indenture
Trustee and the Seller,  and (B) the  Indenture  Trustee shall require a written
opinion of counsel (which will not be at the expense of the Seller, the Servicer
or the Indenture  Trustee)  satisfactory to the Seller and the Indenture Trustee
to the effect that such transfer will not violate the  Securities  Act.  Neither
the Seller nor the  Indenture  Trustee will  register  any of the Private  Notes
under the Securities Act,  qualify any of the Private Notes under the securities
laws of any state or  provide  registration  rights to any  purchaser  or holder
thereof.

     (b) The Private Notes shall be issued in the form of  Definitive  Notes and
shall  be in  fully  registered  form.  Sections  2.10,  2.11  and  2.12 of this
Indenture shall not apply to the Private Notes.

     (c) Each  Private  Note  shall  bear a legend  to the  effect  set forth in
subsection (a) above.

                                   ARTICLE III
                                    COVENANTS

     SECTION 3.1 Payment of Principal  and  Interest.  The Issuer shall duly and
punctually pay the principal of and interest on the Notes in accordance with the
terms of the Notes and this

                                       12

<PAGE>

Indenture. On each Distribution Date and on the Redemption Date (if applicable),
the Issuer shall cause amounts on deposit in the Note Distribution Account to be
distributed  to the  Noteholders  in accordance  with Sections 2.7 and 8.2, less
amounts  properly  withheld  under the Code by any Person  from a payment to any
Noteholder  of interest  and/or  principal.  Any  amounts so  withheld  shall be
considered as having been paid by the Issuer to such Noteholder for all purposes
of this Indenture.

     SECTION  3.2  Maintenance  of  Agency  Office.  As long as any of the Notes
remains outstanding,  the Issuer shall maintain in the Borough of Manhattan, the
City of New York,  an office (the  "Agency  Office"),  being an office or agency
where Notes may be  surrendered  to the Issuer for  registration  of transfer or
exchange,  and where notices and demands to or upon the Issuer in respect of the
Notes and this Indenture may be served. The Issuer hereby initially appoints the
Indenture Trustee to serve as its agent for the foregoing  purposes.  The Issuer
shall give prompt written notice to the Indenture  Trustee of the location,  and
of any change in the location,  of the Agency Office.  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 of the  Indenture  Trustee,
and the Issuer hereby appoints the Indenture Trustee as its agent to receive all
such surrenders, notices and demands.

     SECTION 3.3 Money for Payments To Be Held in Trust.

     (a) As provided in Section  8.2(a) and (b), all payments of amounts due and
payable  with  respect to any Notes that are to be made from  amounts  withdrawn
from the Note  Distribution  Account pursuant to Section 8.2(c) shall be made on
behalf of the Issuer by the Indenture Trustee or by another Paying Agent, and no
amounts so withdrawn  from the Note  Distribution  Account for payments of Notes
shall be paid over to the Issuer except as provided in this Section 3.3.

     (b) On or  before  each  Distribution  Date  or  the  Redemption  Date  (if
applicable),  the  Issuer  shall  deposit or cause to be  deposited  in the Note
Distribution  Account  pursuant to Section 4.06 of the Trust Sale and  Servicing
Agreement an aggregate sum  sufficient to pay the amounts then becoming due with
respect  to the  Notes,  such sum to be held in  trust  for the  benefit  of the
Persons entitled thereto.

     (c) The Issuer  shall  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 3.3, that such Paying Agent shall:

     (i) hold all sums held by it for the payment of amounts due with respect to
the Notes in trust for the benefit of the Persons  entitled  thereto  until such
sums shall be

                                       13

<PAGE>

paid to such  Persons or otherwise  disposed of as herein  provided and pay such
sums to such Persons as herein provided;

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

          (iii) at any time during the continuance of any such default, upon the
     written  request of the Indenture  Trustee,  forthwith pay to the Indenture
     Trustee all sums so held in trust by such 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 in effect at the time of determination; 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  and with  respect  to any  applicable
     reporting requirements in connection therewith.

     (d)  The  Issuer  may at  any  time,  for  the  purpose  of  obtaining  the
satisfaction and discharge of this Indenture or for any other purpose, by Issuer
Order direct any 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.

     (e) 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 one year
after such amount has become due and payable shall be discharged from such trust
and be paid to the Issuer on Issuer  Request;  and the 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 payment,
may at the  expense 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 shall be paid to the Issuer. The Indenture Trustee may
also adopt and

                                       14

<PAGE>

employ, at the expense of the Issuer, any other reasonable means of notification
of such payment  (including,  but not limited to, mailing notice of such payment
to Holders  whose  Notes  have been  called  but have not been  surrendered  for
redemption  or whose  right to or  interest  in monies due and  payable  but not
claimed is  determinable  from the  records of the  Indenture  Trustee or of any
Paying Agent, at the last address of record for each such Holder).

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

     SECTION 3.5 Protection of Trust Estate; Acknowledgment of Pledge.

     (a) The  Issuer  shall  from  time to time  execute  and  deliver  all such
supplements   and  amendments   hereto  and  all  such   financing   statements,
continuation statements, instruments of further assurance and other instruments,
and shall take such other action necessary or advisable to:

          (i)  maintain  or preserve  the lien and  security  interest  (and the
     priority  thereof)  of this  Indenture  or carry out more  effectively  the
     purposes  hereof,  including by making the  necessary  filings of financing
     statements or amendments  thereto within sixty days after the occurrence of
     any of the  following:  (A) any change in the Issuer's name, (B) any change
     in the location of the Issuer's principal place of business, (C) any merger
     or consolidation or other change in the Issuer's identity or organizational
     structure  and by  promptly  notifying  the  Indenture  Trustee of any such
     filings  and (D) any  other  change  or  occurrence  that  would  make  any
     financing statement or amendment seriously misleading within the meaning of
     Section 9-402(7) of the UCC.

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

          (iii) enforce the rights of the Indenture  Trustee and the Noteholders
     in any of the Collateral; or

          (iv)  preserve  and defend title to the Trust Estate and the rights of
     the Indenture  Trustee and the Secured Parties in such Trust Estate against
     the claims of all persons and parties,

                                       15

<PAGE>

     and the  Issuer  hereby  designates  the  Indenture  Trustee  its agent and
     attorney-in-fact to execute any financing statement, continuation statement
     or other  instrument  required by the  Indenture  Trustee  pursuant to this
     Section 3.5.

     (b) The  Indenture  Trustee  acknowledges  the  pledge by the Seller to the
Indenture  Trustee  pursuant to Section  4.07(c) of the Trust Sale and Servicing
Agreement  of (i) all of the  Seller's  right,  title and interest in and to the
Reserve  Account  Property in order to provide for the payment to the  Financial
Parties and the  Servicer in  accordance  with  Sections  4.06(c) and (d) of the
Trust  Sale and  Servicing  Agreement,  to assure  availability  of the  amounts
maintained in the Reserve  Account for the benefit of the Financial  Parties and
the  Servicer  and  as  security  for  the  performance  by  the  Seller  of its
obligations under the Trust Sale and Servicing Agreement.

     SECTION 3.6 Opinions as to Trust Estate.

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

     (b) On or before  August 15 in each  calendar  year,  beginning  August 15,
2002,  the Issuer shall furnish to the  Indenture  Trustee an Opinion of Counsel
either stating that, in the opinion of such counsel,  such action has been taken
with  respect  to the  recording,  filing,  re-recording  and  refiling  of this
Indenture,  any indentures supplemental hereto and any other requisite documents
and with respect to the  execution and filing of any  financing  statements  and
continuation  statements  as is  necessary  to  maintain  the lien and  security
interest  created by this  Indenture  and reciting the details of such action or
stating  that in the  opinion of such  counsel no such  action is  necessary  to
maintain the lien and security interest created by this Indenture.  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 August 15 in
the following calendar year.

     SECTION 3.7 Performance of Obligations; Servicing of Receivables.

     (a) The  Issuer  shall not take any  action  and  shall use its  reasonable
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

                                       16

<PAGE>

impair the  validity or  effectiveness  of, any such  instrument  or  agreement,
except as otherwise  expressly  provided in this  Indenture,  the Trust Sale and
Servicing  Agreement,  the Pooling and Servicing  Agreement,  the Administration
Agreement or such other instrument or agreement.

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

     (c) The Issuer shall punctually  perform and observe all of its obligations
and  agreements  contained in this  Indenture,  the 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  financ  ing  statements  and
continuation statements required to be filed by the terms of this Indenture, the
Trust Sale and Servicing  Agreement  and the Pooling and Servicing  Agreement in
accordance with and within the time periods provided for herein and therein.

     (d) If the Issuer  shall have  knowledge  of the  occurrence  of a Servicer
Default under the Trust Sale and Servicing Agreement,  the Issuer shall promptly
notify the Indenture Trustee and the Rating Agencies thereof,  and shall specify
in such notice the response or action, if any, the Issuer has taken or is taking
with respect of such default. If a Servicer Default shall arise from the failure
of the Servicer to perform any of its duties or obligations under the Trust Sale
and Servicing  Agreement or the Pooling and Servicing  Agreement with respect to
the Receivables,  the Issuer and the Indenture Trustee shall take all reasonable
steps  available to them pursuant to the Trust Sale and Servicing  Agreement and
the Pooling and Servicing Agreement to remedy such failure.

     (e) Without  derogating from the absolute nature of the assignment  granted
to the  Indenture  Trustee  under this  Indenture or the rights of the Indenture
Trustee  hereunder,  the  Issuer  agrees  that it shall not,  without  the prior
written  consent of the Indenture  Trustee or the Holders of at least a majority
in Outstanding  Amount of the Notes,  as applicable in accordance with the terms
of this Indenture, amend, modify, waive, supplement,  terminate or surrender, or
agree to any  amend  ment,  modification,  supplement,  termination,  waiver  or
surrender  of, the terms of any  Collateral  or any of the Basic  Documents,  or
waive timely  performance  or observance by the Servicer or the Seller under the
Trust Sale and Servicing Agreement or the Pooling and Servicing  Agreement,  the
Administrator  under the Administration  Agreement or GMAC under the Pooling and
Servicing Agreement.

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

                                       17

<PAGE>

     (a) sell, transfer,  exchange or otherwise dispose of any of the properties
or assets of the Issuer, except the Issuer may (i) collect,  liquidate,  sell or
otherwise dispose of Receivables (including Warranty Receivables, Administrative
Receivables  and  Liquidating  Receivables),  (ii) make cash payments out of the
Designated  Accounts,  Payment  Ahead  Servicing  Account  and  the  Certificate
Distribution  Account and (iii) take other actions, in each case as contemplated
by the Basic Documents;

     (b) 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 applicable  state law) 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;

     (c) voluntarily commence any insolvency,  readjustment of debt,  marshaling
of assets and liabilities or other proceeding,  or apply for an order by a court
or agency or  supervisory  authority for the  winding-up or  liquidation  of its
affairs or any other event specified in Section 5.1(f); or

     (d) either (i) 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,  (ii)  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 a Financed Vehicle and arising solely
as a result of an action or omission of the related  Obligor),  or (iii)  permit
the lien of this  Indenture  not to constitute a valid first  priority  security
interest  in the  Trust  Estate  (other  than  with  respect  to any  such  tax,
mechanics' or other lien).

     SECTION 3.9 Annual Statement as to Compliance.  The Issuer shall deliver to
the Indenture Trustee on or before August 15 of each year,  beginning August 15,
2002, an Officer's Certificate signed by an Authorized Officer, dated as of June
30 of such year, stating that:

     (a) a review of the activities of the Issuer during the preceding  12-month
period (or, with respect to the first such Officer's Certificate, such period as
shall  have  elapsed  since the  Closing  Date) and of  performance  under  this
Indenture has been made under such Authorized Officer's supervision; and

     (b) to the  best of such  Authorized  Officer's  knowledge,  based  on such
review,  the Issuer has fulfilled all of its  obligations  under this  Indenture
throughout  such period,  or, if there has been a default in the  fulfillment of
any such obligation, specifying each such default known to such

                                       18

<PAGE>

Authorized Officer and the nature and status thereof. A copy of such certificate
may be  obtained  by any  Noteholder  by a  request  in  writing  to the  Issuer
addressed to the Corporate Trust Office of the Indenture Trustee.

     SECTION 3.10 Consolidation,  Merger, etc., of Issuer;  Disposition of Trust
Assets.

     (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 timely  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 merger or consolidation,
     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 and such Person;

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

          (v) the  Issuer  shall  have  delivered  to the  Indenture  Trustee an
     Officer's  Certificate  and an Opinion of Counsel  addressed to the Issuer,
     each stating:

               (A) that  such  consolidation  or  merger  and such  supplemental
          indenture comply with this Section 3.10;

               (B) that  such  consolidation  or  merger  and such  supplemental
          indenture shall have no material adverse tax consequence to the Issuer
          or any Financial Party; and

               (C) that all  conditions  precedent  herein  provided for in this
          Section 3.10 have been complied  with,  which shall include any filing
          required by the Exchange Act.

                                       19

<PAGE>

     (b) Except as otherwise  expressly permitted by this Indenture or the other
Basic  Documents,  the Issuer  shall not sell,  convey,  exchange,  transfer  or
otherwise  dispose of any of its properties or assets,  including those included
in the Trust Estate, to any Person, unless:

          (i) the Person that acquires  such  properties or assets of the Issuer
     (1) shall be a United  States  citizen or a Person  organized  and existing
     under the laws of the  United  States of America or any State and (2) by an
     indenture  supplemental  hereto,  executed and  delivered to the  Indenture
     Trustee, in form satisfactory to the Indenture Trustee:

               (A)  expressly  assumes  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;

               (B) expressly agrees that all right,  title and interest so sold,
          conveyed,  exchanged,  transferred  or otherwise  disposed of shall be
          subject and subordinate to the rights of the Secured Parties;

               (C) unless  otherwise  provided in such  supplemental  indenture,
          expressly  agrees to  indemnify,  defend and hold  harmless the Issuer
          against  and from any loss,  liability  or  expense  arising  under or
          related to this Indenture and the Notes; and

               (D) expressly  agrees that such Person (or if a group of Persons,
          then one specified  Person) shall make all filings with the Commission
          (and any other  appropriate  Person)  required by the  Exchange Act in
          connection with the Notes;

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

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

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

          (v) the  Issuer  shall  have  delivered  to the  Indenture  Trustee an
     Officer's  Certificate  and an Opinion of Counsel  addressed to the Issuer,
     each stating that:

               (A) such sale, conveyance,  exchange, transfer or disposition and
          such supplemental indenture comply with this Section 3.10;

                                       20

<PAGE>

               (B) such sale, conveyance,  exchange, transfer or disposition and
          such  supplemental  indenture have no material adverse tax consequence
          to the Trust or to any Financial Parties; and

               (C) that all  conditions  precedent  herein  provided for in this
          Section 3.10 have been complied  with,  which shall include any filing
          required by the Exchange Act.

     SECTION 3.11 Successor or Transferee.

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

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

     SECTION 3.12 No Other Business. The Issuer shall not engage in any business
or activity  other than  acquiring,  holding and managing the Collateral and the
proceeds  therefrom in the manner  contemplated by the Basic Documents,  issuing
the  Notes  and  the  Certificates,   making  payments  on  the  Notes  and  the
Certificates  and  such  other  activities  that  are  necessary,   suitable  or
convenient to accomplish the foregoing or are incidental  thereto,  as set forth
in Section 2.3 of the Trust Agreement.

     SECTION  3.13 No  Borrowing.  The Issuer  shall not issue,  incur,  assume,
guarantee  or  otherwise  become  liable,   directly  or  indirectly,   for  any
indebtedness  for money borrowed other than  indebtedness  for money borrowed in
respect of the Notes or otherwise in accordance with the Basic Documents.

     SECTION 3.14 Guarantees,  Loans, Advances and Other Liabilities.  Except as
contemplated  by this Indenture or the other Basic  Documents,  the Issuer shall
not make any loan or advance or credit to, or guarantee  (directly or indirectly
or by  an  instrument  having  the  effect  of  assuring  another's  payment  or
performance on any  obligation or capability of so doing or otherwise),  endorse
or otherwise become contingently liable,  directly or indirectly,  in connection
with the obligations,  stocks or dividends of, or own,  purchase,  repurchase or
acquire  (or agree  contingently  to do so) any  stock,  obligations,  assets or
securities  of, or any other interest in, or make any capital  contribution  to,
any other Person.

                                       21

<PAGE>

     SECTION 3.15 Servicer's Obligations.  The Issuer shall use its best efforts
to cause the Servicer to comply with its  obligations  under Section 3.10 of the
Pooling and Servicing Agreement and Sections 4.01 and 4.02 of the Trust Sale and
Servicing Agreement.

     SECTION  3.16  Capital   Expenditures.   The  Issuer  shall  not  make  any
expenditure  (whether by long-term or operating  lease or otherwise) for capital
assets (either real, personal or intangible property) other than the purchase of
the  Receivables  and other property and rights from the Seller  pursuant to the
Trust Sale and Servicing Agreement.

     SECTION  3.17  Removal  of   Administrator.   So  long  as  any  Notes  are
Outstanding,  the Issuer shall not remove the Administrator without cause unless
the Rating Agency  Condition  shall have been satisfied in connection  with such
removal.

     SECTION  3.18  Restricted  Payments.  Except for  payments of  principal or
interest on or  redemption of the Notes,  so long as any Notes are  Outstanding,
the Issuer shall not, directly or indirectly:

     (a) pay any dividend or make any  distribution  (by reduction of capital or
other wise), 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,  in each case with  respect to any  ownership  or equity  interest or
similar security in or of the Issuer or to the Servicer;

     (b)  redeem,  purchase,  retire  or  otherwise  acquire  for value any such
ownership or equity interest or similar security; or

     (c) set aside or otherwise segregate any amounts for any such purpose;

provided,  however, that the Issuer may make, or cause to be made, distributions
to the Servicer,  the Seller, the Indenture Trustee,  the Owner Trustee, and the
Financial  Parties as permitted  by, and to the extent funds are  available  for
such purpose under, the Trust Sale and Servicing Agreement,  the Trust Agreement
or the other Basic Documents. The Issuer shall not, directly or indirectly, make
payments to or  distributions  from the Collection  Account except in accordance
with the Basic Documents.

     SECTION  3.19  Notice of Events of Default.  The Issuer  agrees to give the
Indenture Trustee and the Rating Agencies prompt written notice of each Event of
Default hereunder, each Servicer Default, each default on the part of the Seller
of its obligations under the Trust Sale and Servicing Agreement and each default
on the  part  of  GMAC  of its  obligations  under  the  Pooling  and  Servicing
Agreement.

                                       22

<PAGE>

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

     SECTION 3.21 Indenture Trustee's  Assignment of Administrative  Receivables
and Warranty Receivables. Upon receipt of the Administrative Purchase Payment or
the Warranty Payment with respect to an Administrative  Receivable or a Warranty
Receivable,  as the case may be, the Indenture  Trustee  shall  assign,  without
recourse, representation or warranty, to the Servicer or the Warranty Purchaser,
as the case may be, all the Indenture Trustee's right, title and interest in and
to such repurchased Receivable, all monies due thereon, the security interest in
the related Financed  Vehicle,  proceeds from any Insurance  Policies,  proceeds
from  recourse  against the Dealer on such  Receivable  and the interests of the
Indenture  Trustee in certain rebates of premiums and other amounts  relating to
the Insurance Policies and any documents relating thereto, such assignment being
an assignment  outright and not for  security;  and the Servicer or the Warranty
Purchaser,  as applicable,  shall  thereupon own such  Receivable,  and all such
security and documents, free of any further obligation to the Indenture Trustee,
the  Noteholders  or the  Certificateholders  with  respect  thereto.  If in any
enforcement  suit or  legal  proceeding  it is held  that the  Servicer  may not
enforce a Receivable  on the ground that it is not a real party in interest or a
holder entitled to enforce the Receivable,  the Indenture  Trustee shall, at the
Servicer's  expense,  take such steps as the Servicer deems necessary to enforce
the Receivable,  including bringing suit in the Indenture  Trustee's name or the
names of the Noteholders or the Certificateholders.

     SECTION 3.22  Representations and Warranties by the Issuer to the Indenture
Trustee.  The Issuer hereby  represents and warrants to the Indenture Trustee as
follows:

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

     (b) All Filings  Made.  All filings  (including,  without  limitation,  UCC
filings)  necessary in any  jurisdiction  to give the Indenture  Trustee a first
perfected security interest in the Receivables shall have been made.

                                       23

<PAGE>

                                   ARTICLE IV
                           SATISFACTION AND DISCHARGE

     SECTION 4.1 Satisfaction  and Discharge of Indenture.  This Indenture shall
cease to be of further effect with respect to the Notes except as to: (i) rights
of  registration  of transfer and  exchange;  (ii)  substitution  of  mutilated,
destroyed, lost or stolen Notes; (iii) rights of Noteholders to receive payments
of principal  thereof and interest  thereon;  (iv)  Sections 3.3, 3.4, 3.5, 3.8,
3.10, 3.12,  3.13, 3.19 and 3.21; (v) the rights,  obligations and immunities of
the Indenture Trustee  hereunder  (including the rights of the Indenture Trustee
under Section 6.7 and the  obligations  of the Indenture  Trustee under Sections
4.2 and 4.4); 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, if:

     (a) either:

          (i) all Notes theretofore  authenticated and delivered (other than (A)
     Notes that have been destroyed,  lost or stolen and that have been replaced
     or paid as provided in Section  2.5 and (B) Notes for whose  payment  money
     has theretofore  been deposited in trust or segregated and held in trust by
     the Issuer and  thereafter  repaid to the  Issuer or  discharged  from such
     trust,  as provided in Section 3.3) have been  delivered  to the  Indenture
     Trustee for cancellation; or

          (ii) all Notes not theretofore  delivered to the Indenture Trustee for
     cancellation:

               (A) have become due and payable,

               (B) will be due and payable on their  respective  Final Scheduled
          Distribution Dates within one year, or

               (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) of  subsection
               4.1(a)(ii)  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  (which  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  unpaid  principal  and  accrued
               interest on such Notes not

                                       24

<PAGE>

               theretofore  delivered to the Indenture  Trustee for cancellation
               when due on the Final Scheduled  Distribution Date for such Notes
               or the  Redemption  Date for such  Notes (if such Notes have been
               called for redemption  pursuant to Section 10.1), as the case may
               be;

     (b) the  Issuer  has paid or  caused  to be paid  all  other  sums  payable
hereunder or under any Third Party Instrument by the Issuer; and

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

     SECTION 4.2  Application  of Trust  Money.  All monies  deposited  with the
Indenture  Trustee pursuant to Section 4.1 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 monies have been deposited with the Indenture  Trustee,
of all sums due and to become due  thereon for  principal  and  interest  and to
payment of any other Secured  Party or any holder of any Third Party  Instrument
of all sums,  if any,  due or to become  due to any other  Secured  Party or any
holder  of any  Third  Party  Instrument  under  and  in  accordance  with  this
Indenture; but such monies need not be segregated from other funds except to the
extent  required  herein,  in the  Trust  Sale and  Servicing  Agreement,  or as
required by law.

     SECTION 4.3  Repayment of Monies Held by Paying Agent.  In connection  with
the  satisfaction and discharge of this Indenture with respect to the Notes, all
monies then held by any Paying Agent other than the Indenture  Trustee under the
provisions of this  Indenture  with respect to such Notes shall,  upon demand of
the Issuer, be paid to the Indenture Trustee to be held and applied according to
Section 3.3 and  thereupon  such Paying Agent shall be released from all further
liability with respect to such monies.

     SECTION 4.4 Duration of Position of Indenture Trustee.  Notwithstanding the
earlier  payment in full of all  principal  and interest due to the  Noteholders
under  the  terms of the Notes and the  cancellation  of the Notes  pursuant  to
Section  3.1, the  Indenture  Trustee  shall  continue to act in the capacity as
Indenture  Trustee  hereunder  and,  for the benefit of the  Certificateholders,
shall comply with its obligations under Sections  5.01(a),  7.02 and 7.03 of the
Trust  Sale and  Servicing  Agreement,  as  appropriate,  until such time as all
payments  in  respect  of   Certificate   Balance  and   interest   due  to  the
Certificateholders have been paid in full.

                                       25

<PAGE>

                                    ARTICLE V
                              DEFAULT AND REMEDIES

     SECTION 5.1 Events of Default.  For the purposes of this Indenture,  "Event
of Default" wherever used herein, means any one of the following events:

     (a) failure to pay the full Noteholders'  Interest  Distributable Amount on
any class of Notes on any Distribution Date, and such default shall continue for
a period of five (5) days; or

     (b) except as set forth in Section 5.1(c), failure to pay any instalment of
the principal of any Note as and when the same becomes due and payable, and such
default continues  unremedied for a period of thirty (30) days after there shall
have been  given,  by  registered  or  certified  mail,  to the  Servicer by the
Indenture Trustee or to the Servicer and the Indenture Trustee by the Holders of
not less than 25% of the  Outstanding  Amount  of the  Notes,  a written  notice
specifying  such default and demanding that it be remedied and stating that such
notice is a "Notice of Default" hereunder; or

     (c) failure to pay in full the outstanding  principal  balance of any class
of Notes by the Final Scheduled Distribution Date for such class; or

     (d) default in the observance or performance in any material respect of any
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  specifically  dealt with in this  Section 5.1) which  failure
materially and adversely affects the rights of the Noteholders, and such default
shall  continue or not be cured,  for a period of 30 days after there shall have
been given,  by registered  or certified  mail, to the Issuer and the Seller (or
the Servicer,  as applicable) by the Indenture  Trustee or to the Issuer and the
Seller (or the Servicer, as applicable) and the Indenture Trustee by the Holders
of at least  25% of the  Outstanding  Amount  of the  Notes,  a  written  notice
specifying  such  default,  demanding  that it be remedied and stating that such
notice is a "Notice of Default" hereunder; or

     (e)  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
appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or
similar  official of the Issuer or for any substantial part of the Trust Estate,
or ordering the  winding-up or  liquidation  of the Issuer's  affairs,  and such
decree  or  order  shall  remain  unstayed  and in  effect  for a  period  of 90
consecutive days; or

     (f) 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

                                       26

<PAGE>

by the Issuer to the entry of an order for relief in an  involuntary  case under
any such  law,  or the  consent  by the  Issuer  to the  appointment  or  taking
possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator
or  similar  official  of the  Issuer or for any  substantial  part of the 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 action by the Issuer in  furtherance  of any of the
foregoing.

The Issuer shall  deliver to the  Indenture  Trustee  within five  Business Days
after  learning  of the  occurrence  thereof,  written  notice in the form of an
Officer's Certificate of any event which with the giving of notice and the lapse
of time would become an Event of Default  under Section  5.1(d),  its status and
what action the Issuer is taking or proposes to take with respect thereto.

     SECTION 5.2 Acceleration of Maturity; Rescission and Annulment.

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

     (b) At any time after such  declaration of  acceleration of maturity of the
Notes has been made and before a judgment or decree for payment of the money due
thereunder has been obtained by the Indenture Trustee as hereinafter provided in
this Article V, the Holders of Notes  representing a majority of the Outstanding
Amount of the Notes, by written notice to the Issuer and the Indenture  Trustee,
may waive all  Defaults  set forth in the notice  delivered  pursuant to Section
5.2(a),  and rescind and annul such declaration and its consequences;  provided,
that no such  rescission  and  annulment  shall  extend to or  affect  any other
Default or impair any right consequent  thereto;  and provided further,  that if
the  Indenture  Trustee  shall have  proceeded  to enforce  any right under this
Indenture and such Proceedings shall have been discontinued or abandoned because
of such  rescission and annulment or for any other reason,  or such  Proceedings
shall have been determined adversely to the Indenture Trustee, then and in every
such case, the Indenture  Trustee,  the Issuer and the Noteholders,  as the case
may be,  shall be restored  respectively  to their former  positions  and rights
hereunder,  and all rights,  remedies and powers of the Indenture  Trustee,  the
Issuer and the Noteholders, as the case may be, shall continue as though no such
Proceedings had been commenced.

                                       27

<PAGE>

     SECTION  5.3  Collection  of  Indebtedness  and  Suits for  Enforcement  by
Indenture Trustee.

     (a) The Issuer  covenants that if an Event of Default occurs and such Event
of Default has not been waived pursuant to Section 5.12, the Issuer shall,  upon
demand of the Indenture Trustee,  pay to the Indenture Trustee,  for the ratable
benefit of the  Noteholders  in  accordance  with their  respective  outstanding
principal  amounts,  the whole  amount  then due and  payable  on such Notes for
principal and interest,  with interest upon the overdue  principal,  at the rate
borne by the Notes  and in  addition  thereto  such  further  amount as shall be
sufficient  to cover  the  costs  and  expenses  of  collection,  including  the
reasonable compensation,  expenses,  disbursements and advances of the Indenture
Trustee and its agents and counsel.

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

     (c) If an Event of Default occurs and is continuing,  the Indenture Trustee
may, as more particularly provided in Section 5.4, in its discretion, proceed to
protect  and  enforce  its  rights and the  rights of the  Noteholders,  by such
appropriate  Proceedings  as the Indenture  Trustee shall deem most effective to
protect and enforce any such rights, whether for the specific enforcement of any
covenant or agreement  in this  Indenture or in aid of the exercise of any power
granted  herein,  or to enforce any other  proper  remedy or legal or  equitable
right vested in the Indenture Trustee by this Indenture or by applicable law.

     (d) If there shall be pending,  relative to the Issuer or any other obligor
upon the Notes or any Person  having or  claiming an  ownership  interest in the
Trust Estate,  Proceedings under Title 11 of the United States Code or any other
applicable federal or state bankruptcy, insolvency or other similar law, or if a
receiver,  assignee  or trustee in  bankruptcy  or  reorganization,  liquidator,
sequestrator  or  similar  official  shall  have  been  appointed  for or  taken
possession of the Issuer or its property or such other obligor or Person,  or in
case of any other  comparable  judicial  Proceedings  relative  to the Issuer or
other  obligor upon the Notes,  or to the creditors or property of the Issuer or
such other obligor, the Indenture Trustee, irrespective of whether the principal
of  any  Notes  shall  then  be due  and  payable  as  therein  expressed  or by
declaration or otherwise and irrespective of whether the Indenture Trustee shall
have made any demand  pursuant to the  provisions of this Section 5.3,  shall be
entitled and empowered, by intervention in such Proceedings or otherwise:

                                       28

<PAGE>

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

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

          (iii) to collect and receive any monies or other  property  payable or
     deliverable on any such claims and to 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  judicial  proceedings
     relative to the Issuer, its creditors and 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  for  application  in  accordance  with the
priorities set forth in the Basic Documents, and, if 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  trustee  and their
respective agents, attorneys and counsel, and all other expenses and liabilities
incurred,  and all advances made, by the Indenture  Trustee and each predecessor
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.

     (f) All rights of action and of asserting  claims under this Indenture,  or
under any of the Notes,  may be enforced by the  Indenture  Trustee  without the
possession of any of the Notes or the  production  thereof in any trial or other
Proceedings  relative  thereto,  and  any  such  Proceedings  instituted  by the
Indenture  Trustee  shall be  brought  in its own name as  trustee of an express
trust,

                                       29

<PAGE>

and  any  recovery  of  judgment,  subject  to  the  payment  of  the  expenses,
disbursements  and  compensation  of the  Indenture  Trustee,  each  predecessor
Trustee and their respective  agents and attorneys,  shall be for the benefit of
the Secured  Parties in accordance  with the  priorities  set forth in the Basic
Documents.

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

     SECTION 5.4 Remedies; Priorities.

     (a) If an Event of Default shall have  occurred and be  continuing  and the
Notes have been accelerated  under Section 5.2(a),  the Indenture Trustee may do
one or more of the following (subject to Section 5.5):

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

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

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

          (iv)  sell the  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 or elect  to have  the  Issuer
     maintain possession of the Receivables and continue to apply collections on
     such  Receivables  as if there  had been no  declaration  of  acceleration;
     provided,  however,  that the  Indenture  Trustee may not sell or otherwise
     liquidate the Trust Estate  following an Event of Default and  acceleration
     of the  Notes,  unless  (i)  (A)  the  Holders  of  all  of  the  aggregate
     Outstanding  Amount  of the Notes  consent  thereto  (and if such  Event of
     Default  results under  Section  5.1(d) of this  Indenture,  the Holders of
     Certificates representing all of the Voting Interests also consent thereto)
     or (B) the  proceeds  of  such  sale or  liquidation  distributable  to the
     Noteholders and the  Certificateholders are sufficient to discharge in full
     the  principal  of and the  accrued  interest on the Notes and an amount in
     respect of the Certificates equal to (x) the sum of the Certificate Balance
     and any Noteholders' Principal

                                       30

<PAGE>

     Carryover  Shortfall or  Certificateholders'  Principal Carryover Shortfall
     and (y) the  Certificateholders  Interest Distributable Amount, each at the
     date of such  sale or  liquidation  or (C) (x)  there  has been an Event of
     Default  under  Section  5.1(a),  (b) or (c) or  otherwise  arising  from a
     failure  to make a  required  payment of  principal  on any Notes,  (y) the
     Indenture  Trustee  determines  that the Trust  Estate will not continue to
     provide  sufficient  funds for the payment of  principal of and interest on
     the Notes as and when they would have  become due if the Notes had not been
     declared due and payable, and (z) the Indenture Trustee obtains the consent
     of Holders of a majority of the aggregate  Outstanding  Amount of the Notes
     and (ii) 10 days'  prior  written  notice of sale or  liquidation  has been
     given  to  the  Rating   Agencies.   In  determining  such  sufficiency  or
     insufficiency  with respect to clauses (B) and (C), the  Indenture  Trustee
     may,  but need not,  obtain  and rely  upon an  opinion  of an  Independent
     investment  banking or  accounting  firm of national  reputation  as to the
     feasibility of such proposed  action and as to the sufficiency of the Trust
     Estate for such purpose.

     (b) If the  Indenture  Trustee  collects any money or property  pursuant to
this Article V, it shall pay out the money or property in the following order:

          FIRST: to the Indenture  Trustee for amounts due under Section 6.7 and
     then to the  Owner  Trustee  for  amounts  due to the  Owner  Trustee  (not
     including  amounts due for  payments to the  Certificateholders)  under the
     Trust Agreement or the Trust Sale and Servicing Agreement; and

          SECOND:  to the  Collection  Account,  for  distribution  pursuant  to
     Sections 8.01(b) and (e) of the Trust Sale and Servicing Agreement.

     SECTION 5.5 Optional  Preservation  of the  Receivables.  If the Notes have
been  declared to be due and payable  under  Section 5.2  following  an Event of
Default and such  declaration and its  consequences  have not been rescinded and
annulled in accordance with Section 5.2(b),  the Indenture Trustee may, but need
not, elect to take and maintain possession of the Trust Estate. It is the desire
of the  parties  hereto  and the  Secured  Parties  that  there be at all  times
sufficient  funds for the  payment of the  Secured  Obligations  to the  Secured
Parties and the  Indenture  Trustee  shall take such desire  into  account  when
determining  whether or not to take and maintain possession of the Trust Estate.
In determining  whether to take and maintain possession of the Trust Estate, the
Indenture  Trustee  may,  but need not,  obtain  and rely upon an  opinion of an
Independent  investment banking or accounting firm of national  reputation as to
the  feasibility of such proposed  action and as to the sufficiency of the Trust
Estate for such purpose.

     SECTION 5.6 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:

                                       31

<PAGE>

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

     (b) the Holders of not less than 25% of the Outstanding Amount of the 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;

     (c) such Holder or Holders have offered to the Indenture Trustee reasonable
indemnity  against  the  costs,  expenses  and  liabilities  to be  incurred  in
complying with such request;

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

     (e) no direction  inconsistent  with such written request has been given to
the Indenture  Trustee during such 60-day period by the Holders of a majority of
the Outstanding Amount of the Notes;

it being understood and intended that no one or more Holders of Notes shall have
any right in any manner  whatever by virtue of, or by availing of, any provision
of this  Indenture  to  affect,  disturb  or  prejudice  the rights of any other
Holders of Notes or to obtain or to seek to obtain  priority or preference  over
any other Holders of Notes or to enforce any right under this Indenture,  except
in the manner  herein  provided and for the equal,  ratable (on the basis of the
respective  aggregate  amount of principal and interest,  respectively,  due and
unpaid on the Notes held by each  Noteholder)  and common benefit of all holders
of Notes.  For the protection and  enforcement of the provisions of this Section
5.6, each and every  Noteholder shall be entitled to such relief as can be given
either at law or in equity.

     If the Indenture Trustee shall receive conflicting or inconsistent requests
and  indemnity  from two or more groups of Holders of Notes,  each  representing
less than a  majority  of the  Outstanding  Amount of the Notes,  the  Indenture
Trustee in its sole  discretion  may  determine  what action,  if any,  shall be
taken, notwithstanding any other provisions of this Indenture.

     SECTION 5.7  Unconditional  Rights of Noteholders To Receive  Principal and
Interest.  Notwithstanding any other provisions in this Indenture, the Holder of
any Note shall have the right, which is absolute and  unconditional,  to receive
payment  of the  principal  of and  interest,  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,  if applicable,  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.

                                       32

<PAGE>

     SECTION 5.8 Restoration of Rights and Remedies. If the Indenture Trustee or
any  Noteholder  has  instituted  any  Proceeding to enforce any right or remedy
under this Indenture and such Proceeding has been  discontinued or abandoned for
any reason or has been determined  adversely to the Indenture Trustee or to such
Noteholder,  then and in every such case the Issuer,  the Indenture  Trustee and
the Noteholders  shall,  subject to any  determination  in such  Proceeding,  be
restored  severally  to  their  respective  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  5.9  Rights and  Remedies  Cumulative.  No right or remedy  herein
conferred  upon or reserved to the Indenture  Trustee or to the  Noteholders  is
intended  to be  exclusive  of any other  right or remedy,  and every  right and
remedy shall,  to the extent  permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law
or in equity or  otherwise.  The  assertion or employment of any right or remedy
hereunder,  or  otherwise,   shall  not  prevent  the  concurrent  assertion  or
employment of any other appropriate right or remedy.

     SECTION  5.10 Delay or Omission  Not a Waiver.  No delay or omission of the
Indenture  Trustee  or any  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 by
the Noteholders, as the case may be.

     SECTION  5.11  Control by  Noteholders.  The  Holders of a majority  of the
Outstanding  Amount of the Notes  shall,  subject  to  provision  being made for
indemnification  against costs,  expenses and liabilities in a form satisfactory
to the Indenture Trustee, 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, however, that:

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

     (b) subject to the  express  terms of Section  5.4,  any  direction  to the
Indenture  Trustee to sell or liquidate the Trust Estate shall be by the Holders
of Notes representing not less than 100% of the Outstanding Amount of the Notes;

     (c) if the  conditions set forth in Section 5.5 have been satisfied and the
Indenture  Trustee  elects to retain the Trust  Estate  pursuant to Section 5.5,
then any direction to the Indenture

                                       33

<PAGE>

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

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

provided,  however, that, subject to Section 6.1, the Indenture Trustee need not
take any action  that it  determines  might cause it to incur any  liability  or
might  materially  adversely affect the rights of any Noteholders not consenting
to such action.

     SECTION 5.12 Waiver of Past Defaults.

     (a) Prior to the  declaration  of the  acceleration  of the maturity of the
Notes as provided in Section 5.2, the Holders of not less than a majority of the
Outstanding  Amount of the Notes may waive any past  Default or Event of Default
and its  consequences  except a Default  (i) in the payment of  principal  of or
interest  on any of the Notes or (ii) in  respect  of a  covenant  or  provision
hereof which 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  Noteholders  shall be restored to their  respective  former  positions  and
rights  hereunder;  but no such waiver shall extend to any  subsequent  or other
Default or impair any right consequent thereto.

     (b) 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 any Note by such Holder's  acceptance thereof shall be deemed
to have agreed,  that any court may in its discretion require, in any Proceeding
for the  enforcement  of any right or remedy  under  this  Indenture,  or in any
Proceeding  against  the  Indenture  Trustee for any action  taken,  suffered or
omitted by it as Trustee, the filing by any party litigant in such Proceeding of
an undertaking to pay the costs of such  Proceeding,  and that such court may in
its discretion assess reasonable costs,  including  reasonable  attorneys' fees,
against any party litigant in such  Proceeding,  having due regard to the merits
and good faith of the claims or defenses  made by such party  litigant;  but the
provisions of this Section 5.13 shall not apply to:

     (a) any Proceeding instituted by the Indenture Trustee;

     (b) any Proceeding  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

                                       34

<PAGE>

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

     SECTION 5.14 Waiver of Stay or Extension Laws. The Issuer covenants (to the
extent that it may lawfully do so) that it shall not at any time insist upon, or
plead or in any manner  whatsoever,  claim or take the benefit or advantage  of,
any stay or extension  law  wherever  enacted,  now or at any time  hereafter in
force,  that may affect the covenants or the performance of this Indenture.  The
Issuer (to the extent that it may  lawfully do so) hereby  expressly  waives all
benefit or advantage of any such law,  and  covenants  that it shall not hinder,
delay or impede the  execution  of any power  herein  granted  to the  Indenture
Trustee, but shall 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 5.4(b).

     SECTION 5.16 Performance and Enforcement of Certain Obligations.

     (a) Promptly following a request from the Indenture Trustee to do so and at
the Administrator's expense, the Issuer agrees to take all such lawful action as
the  Indenture  Trustee  may  request  to compel or secure the  performance  and
observance by the Seller and the Servicer of their respective obligations to the
Issuer under or in connection  with the Trust Sale and  Servicing  Agreement and
the Pooling and Servicing  Agreement or by GMAC of its  obligations  under or in
connection with the Pooling and Servicing Agreement in accordance with the terms
thereof or by any obligor  under a Third  Party  Instrument  of its  obligations
under or in accordance  with the Third Party  Instrument in accordance  with the
terms  thereof,  and to  exercise  any  and all  rights,  remedies,  powers  and
privileges  lawfully  available  to the Issuer under or in  connection  with the
Trust Sale and Servicing Agreement,  the Pooling and Servicing Agreement and any
Third Party Instrument to the extent and in the manner directed by the Indenture
Trustee,  including  the  transmission  of notices of default on the part of the
Seller, the Servicer,  or any obligor under a Third Party Instrument  thereunder
and the institution of legal or administrative  actions or proceedings to compel
or secure performance by the Seller or the Servicer or any obligor under a Third
Party  Instrument  of their  respective  obligations  under the  Trust  Sale and
Servicing  Agreement,  the Pooling and  Servicing  Agreement and any Third Party
Instrument.

                                       35

<PAGE>

     (b) If an Event of Default has occurred and is  continuing,  the  Indenture
Trustee may, and, at the direction  (which  direction  shall be in writing or by
telephone (confirmed in writing promptly  thereafter)) of the Holders of 66-2/3%
of the  Outstanding  Amount of the Notes shall,  exercise all rights,  remedies,
powers,  privileges and claims of the Issuer against the Seller, the Servicer or
any obligor under a Third Party Instrument under or in connection with the Trust
Sale and Servicing  Agreement,  the Pooling and  Servicing  Agreement or a Third
Party  Instrument,  including the right or power to take any action to compel or
secure  performance or observance by the Seller or the Servicer of each of their
obligations to the Issuer thereunder and to give any consent,  request,  notice,
direction,  approval,  extension  or waiver  under the Trust Sale and  Servicing
Agreement, and any right of the Issuer to take such action shall be suspended.

     (c) If an Event of Default has occurred and is  continuing,  the  Indenture
Trustee may, and, at the direction  (which  direction  shall be in writing or by
telephone (confirmed in writing promptly  thereafter)) of the Holders of 66-2/3%
of the  Outstanding  Amount of the Notes shall,  exercise all rights,  remedies,
powers,  privileges and claims of the Seller against GMAC under or in connection
with the Pooling and Servicing  Agreement,  including the right or power to take
any action to compel or secure  performance or observance by GMAC of each of its
obligations to the Seller thereunder and to give any consent,  request,  notice,
direction,  approval,  extension  or waiver  under  the  Pooling  and  Servicing
Agreement, and any right of the Seller to take such action shall be suspended.

                                   ARTICLE VI
                              THE INDENTURE TRUSTEE

     SECTION 6.1 Duties of Indenture Trustee.

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

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

          (i) the Indenture  Trustee  undertakes to perform such duties and only
     such duties as are  specifically  set forth in this Indenture and the Trust
     Sale and Servicing  Agreement and no implied covenants or obligations shall
     be read into this Indenture,  the Trust Sale and Servicing Agreement or any
     other Basic Document against the Indenture Trustee; and

                                       36

<PAGE>

          (ii) in the absence of bad faith on its part,  the  Indenture  Trustee
     may  conclusively  rely,  as  to  the  truth  of  the  statements  and  the
     correctness  of the  opinions  ex pressed  therein,  upon  certificates  or
     opinions   furnished  to  the  Indenture  Trustee  and  conforming  to  the
     requirements  of this  Indenture;  provided,  however,  that the  Indenture
     Trustee shall examine the certificates and opinions to determine whether or
     not they conform to the requirements of this Indenture.

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

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

          (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 Section 5.11.

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

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

     (f) No provision of this Indenture  shall require the Indenture  Trustee to
expend or risk its own  funds or  otherwise  incur  financial  liability  in the
performance  of any of its duties  hereunder  or in the  exercise  of any of its
rights or powers, if it shall have reasonable grounds to believe that repayments
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 Indenture  Trustee
shall be subject to the  provisions of this Section 6.1 and to the provisions of
the TIA.

     SECTION 6.2 Rights of Indenture Trustee.

     (a) The  Indenture  Trustee may rely on 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.

                                       37

<PAGE>

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

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

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

     (e) The  Indenture  Trustee may  consult  with  counsel,  and the advice or
opinion of counsel with respect to legal matters  relating to this Indenture and
the Notes shall be full and complete authorization and protection from liability
in respect to any action  taken,  omitted or  suffered by it  hereunder  in good
faith and in accordance with the advice or opinion of such counsel.

     (f) The  Indenture  Trustee shall be under no obligation to exercise any of
the rights or powers vested in it by this  Indenture at the request or direction
of any of the Holders pursuant to this Indenture, unless such Holders shall have
offered to the  Indenture  Trustee  security or  indemnity  satisfactory  to the
Indenture  Trustee against the costs,  expenses and  liabilities  which might be
incurred by it in compliance with such request or direction.

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

     (h) The Indenture Trustee shall not be deemed to have notice of any Default
or Event of Default  unless a Responsible  Officer of the Indenture  Trustee has
actual knowledge  thereof or unless written notice of any event which is in fact
such a default is  received  by the  Indenture  Trustee at the  Corporate  Trust
Office of the Indenture  Trustee,  and such notice references the Securities and
this Indenture.

                                       38

<PAGE>

     (i) The rights, privileges,  protections,  immunities and benefits given to
the  Indenture  Trustee,   including,   without  limitation,  its  right  to  be
indemnified, are extended to, and shall be enforceable by, the Indenture Trustee
in each of its capacities hereunder.

     SECTION 6.3 Indenture  Trustee May Own Notes. 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,  the  Servicer or any of their  respective
Affiliates with the same rights it would have if it were not Indenture  Trustee;
provided,  however,  that the Indenture  Trustee shall comply with Sections 6.10
and 6.11. Any Paying Agent, Note Registrar,  co-registrar or co-paying agent may
do the same with like rights.

     SECTION 6.4 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 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 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 6.5 Notice of Defaults.  If a Default  occurs and is continuing and
if it is known to a Responsible Officer of the Indenture Trustee,  the Indenture
Trustee shall mail to each Noteholder notice of the Default within 90 days after
it  occurs.  Except in the case of a  Default  in  payment  of  principal  of or
interest on any Note,  the  Indenture  Trustee may withhold the notice 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 6.6 Reports by Indenture Trustee to Holders.  The Indenture Trustee
shall  deliver to each  Noteholder  the  information  and documents set forth in
Article VII, and, in addition, all such information with respect to the Notes as
may be required  to enable  such Holder to prepare its federal and state  income
tax returns.

     SECTION 6.7 Compensation; Indemnity.

     (a) The Issuer  shall cause the  Servicer  pursuant to Section  3.09 of the
Pooling and  Servicing  Agreement 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  pursuant to Section 3.09 of
the Pooling and Servicing  Agreement to reimburse the Indenture  Trustee for all
reasonable  out-of-pocket  expenses  incurred or made by it,  including costs of
collection,  in addition to the  compensation  for its  services.  Such expenses
shall  include the  reasonable  compensation  and  expenses,  disbursements  and
advances of the Indenture  Trustee's agents,  external counsel,  accountants and
experts. The Issuer

                                       39

<PAGE>

shall cause the Servicer to indemnify the Indenture  Trustee in accordance  with
Section 6.01 of the Trust Sale and Servicing Agreement.

     (b) The Issuer's  obligations  to the  Indenture  Trustee  pursuant to this
Section 6.7 shall  survive the discharge of this  Indenture.  When the Indenture
Trustee incurs  expenses after the occurrence of a Default  specified in Section
5.1(d)  or (e)  with  respect  to the  Issuer,  the  expenses  are  intended  to
constitute  expenses of administration  under Title 11 of the United States Code
or any other applicable federal or state bankruptcy, insolvency or similar law.

     SECTION 6.8 Replacement of Indenture Trustee.

     (a) The  Indenture  Trustee  may at any time give  notice of its  intent to
resign by so notifying the Issuer;  provided,  however, that no such resignation
shall become  effective and the Indenture  Trustee shall not resign prior to the
time set forth in Section  6.8(c).  The  Holders of a  majority  in  Outstanding
Amount of the  Notes may  remove  the  Indenture  Trustee  by so  notifying  the
Indenture  Trustee  and  may  appoint  a  successor   Indenture  Trustee.   Such
resignation or removal shall become effective in accordance with Section 6.8(c).
The Issuer shall remove the Indenture Trustee if:

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

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

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

          (iv) the Indenture Trustee otherwise becomes incapable of acting.

     (b) If the  Indenture  Trustee  gives  notice of its intent to resign or is
removed or if a vacancy  exists in the office of the  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 and designate a
successor Indenture Trustee.

     (c) A successor Indenture Trustee shall deliver a written acceptance of its
appointment and designation 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 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.

                                       40

<PAGE>

     (d) If a successor  Indenture  Trustee does not take office  within 60 days
after the Indenture  Trustee gives notice of its intent to resign or is removed,
the retiring Trustee, the Issuer or the Holders of a majority of the Outstanding
Amount of the Notes may  petition any court of  competent  jurisdiction  for the
appointment and designation of a successor Indenture Trustee.

     (e) 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.

     (f)  Notwithstanding  the replacement of the Indenture  Trustee pursuant to
this Section 6.8, the Issuer's  obligations under Section 6.7 and the Servicer's
corresponding  obligations  under the Trust Sale and Servicing  Agreement  shall
continue for the benefit of the retiring Indenture Trustee.

     SECTION 6.9 Merger or Consolidation of Indenture Trustee.

     (a) Any corporation into which the Indenture  Trustee may be merged or with
which it may be  consolidated,  or any corporation  resulting from any merger or
consolidation  to  which  the  Indenture  Trustee  shall  be  a  party,  or  any
corporation succeeding to the corporate trust business of the Indenture Trustee,
shall be the successor of the Indenture Trustee under this Indenture;  provided,
however, that such corporation shall be eligible under the provisions of Section
6.11,  without the  execution or filing of any  instrument or any further act on
the part of any of the parties to this Indenture,  anything in this Indenture to
the contrary notwithstanding.

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

     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 or any Financed Vehicle 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  Estate,  and to vest in such Person or Persons,  in such capacity and for
the benefit of the Secured  Parties and (only to the extent  expressly  provided
herein)  the  Certificateholders,  such title to the Trust  Estate,  or any part
hereof,  and, subject to the other provisions of this Section 6.10, such powers,
duties,  obligations,  rights and trusts as the  Indenture  Trustee may consider
necessary or desirable.  No co-trustee or separate  trustee  hereunder  shall be
required to meet the terms of eligibility  as a successor  trustee under Section
6.11 and no  notice to  Noteholders  of the  appointment  of any  co-trustee  or
separate trustee shall be required under Section 6.8.

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

          (i) all rights,  powers,  duties and obligations  conferred or imposed
     upon the Indenture Trustee shall be conferred or imposed upon and exercised
     or  performed  by the  Indenture  Trustee  and  such  separate  trustee  or
     co-trustee  jointly  (it being  understood  that such  separate  trustee or
     co-trustee  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

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

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

     (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

                                       41

<PAGE>

law,  to do any lawful act under or in respect of this  Indenture  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 ss.  310(a).  The Indenture  Trustee
shall have a combined  capital and surplus of at least  $50,000,000 as set forth
in its most recent  published  annual report of condition and (unless  waived by
Moody's Investors Service, Inc.) it shall have a long term unsecured debt rating
of Baa3 or better by Moody's Investors Service, Inc. The Indenture Trustee shall
comply with TIA ss. 310(b); provided, however, that there shall be excluded from
the operation of TIA ss. 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 ss. 310(b)(1) are met.

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

     SECTION 6.13  Representations  and  Warranties  of Indenture  Trustee.  The
Indenture Trustee represents and warrants as of the Closing Date that:

     (a) the  Indenture  Trustee  (i) is a  national  banking  association  duly
organized,  validly  existing and in good standing  under the laws of the United
States of America  and (ii)  satisfies  the  eligibility  criteria  set forth in
Section 6.11;

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

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

                                       42

<PAGE>

     (d) the execution,  delivery and  performance  by the Indenture  Trustee of
this Indenture shall not require the authorization,  consent or approval of, the
giving of notice to, the filing or registration with, or the taking of any other
action in respect  of,  any  governmental  authority  or agency  regulating  the
banking and corporate trust activities of the Indenture Trustee; and

     (e) this  Indenture  has been duly  executed and delivered by the Indenture
Trustee and constitutes the legal,  valid and binding agreement of the Indenture
Trustee, enforceable in accordance with its terms.

     SECTION 6.14 Indenture  Trustee May Enforce  Claims  Without  Possession of
Notes.  All rights of action and claims under this Indenture or the Notes may be
prosecuted and enforced by the Indenture  Trustee  without the possession of any
of the Notes or the production thereof in any proceeding  relating thereto,  and
any such proceeding  instituted by the Indenture Trustee shall be brought in its
own name as Indenture  Trustee.  Any recovery of judgment shall, after provision
for the payment of the  reasonable  compensation,  expenses,  disbursements  and
advances of the Indenture  Trustee,  its agents and counsel,  be for the ratable
benefit of the Noteholders and (only to the extent  expressly  provided  herein)
the Certificateholders in respect of which such judgment has been obtained.

     SECTION 6.15 Suit for  Enforcement.  If an Event of Default shall occur and
be continuing,  the Indenture  Trustee,  in its discretion  may,  subject to the
provisions  of Section  6.1,  proceed to protect  and enforce its rights and the
rights of the  Noteholders  under this  Indenture by Proceeding  whether for the
specific performance of any covenant or agreement contained in this Indenture or
in aid of the  execution  of any  power  granted  in this  Indenture  or for the
enforcement  of any other  legal,  equitable  or other  remedy as the  Indenture
Trustee,  being  advised by counsel,  shall deem most  effectual  to protect and
enforce any of the rights of the Indenture Trustee or the Noteholders.

     SECTION 6.16 Rights of Noteholders to Direct Indenture Trustee.  Holders of
Notes evidencing not less than a majority of the Outstanding Amount of the Notes
shall have the right to direct  the time,  method  and place of  conducting  any
Proceeding for any remedy  available to the Indenture  Trustee or exercising any
trust or power  conferred on the  Indenture  Trustee;  provided,  however,  that
subject to Section 6.1, the Indenture Trustee shall have the right to decline to
follow any such  direction if the  Indenture  Trustee  being  advised by counsel
determines  that the action so directed  may not  lawfully  be taken,  or if the
Indenture Trustee in good faith shall, by a Responsible Officer,  determine that
the proceedings so directed would be illegal or subject it to personal liability
or be unduly  prejudicial  to the  rights of  Noteholders  not  parties  to such
direction;  and provided,  further,  that nothing in this Indenture shall impair
the right of the  Indenture  Trustee  to take any  action  deemed  proper by the
Indenture  Trustee  and which is not  inconsistent  with such  direction  by the
Noteholders.

                                       43

<PAGE>

                                   ARTICLE VII
                         NOTEHOLDERS' LISTS AND REPORTS

     SECTION 7.1 Issuer To Furnish  Indenture  Trustee  Names and  Addresses  of
Noteholders.  The Issuer shall  furnish or cause to be furnished by the Servicer
to the  Indenture  Trustee (a) not more than five days before each  Distribution
Date a list, in such form as the Indenture  Trustee may reasonably  require,  of
the names and  addresses  of the Holders of Notes as of the close of business on
the related  Record Date,  and (b) at such other times as the Indenture  Trustee
may request in writing,  within 14 days after  receipt by the Issuer of any such
request,  a list of similar  form and content as of a date not more than 10 days
prior to the time such list is furnished; provided, however, that so long as the
Indenture  Trustee is the Note  Registrar,  no such list shall be required to be
furnished.

     SECTION 7.2 Preservation of Information, Communications to Noteholders.

     (a) The  Indenture  Trustee  shall  preserve,  in as  current  a form as is
reasonably  practicable,  the  names  and  addresses  of the  Holders  of  Notes
contained in the most recent list furnished to the Indenture Trustee as provided
in Section 7.1 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 7.1 upon receipt of
a new list so fur nished.

     (b)  Noteholders  may  communicate  pursuant  to TIAss.  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 TIAss. 312(c).

     SECTION 7.3 Reports by Issuer.

     (a) The Issuer shall:

          (i) file with the Indenture Trustee within 15 days after the Issuer is
     required to file the same with the Commission, copies of the annual reports
     and of the  information,  documents  and other  reports  (or copies of such
     portions of any of the foregoing as the Commission may from time to time by
     rules and regulations  prescribe)  which 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

                                       44

<PAGE>

     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 ss.  313(c))  such
     summaries of any information, documents and reports required to be filed by
     the Issuer  pursuant to clauses (i) and (ii) of this Section  7.3(a) as may
     be required 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 such year.

     SECTION 7.4 Reports by Trustee.

     (a) If  required  by  TIAss.  313(a),  within  60 days  after  each May 15,
beginning with May 15, 2002, the Indenture Trustee shall mail to each Noteholder
as required by TIA ss. 313(c) a brief report dated as of such date that complies
with TIA ss.  313(a).  The  Indenture  Trustee  also shall  comply  with TIA ss.
313(b). A copy of any report delivered pursuant to this Section 7.4(a) shall, at
the time of its mailing to Noteholders,  be filed by the Indenture  Trustee with
the Commission and each stock  exchange,  if any, on which the Notes are listed.
The Issuer shall notify the  Indenture  Trustee if and when the Notes are listed
on any stock exchange.

     (b) On each Distribution Date the Indenture Trustee shall include with each
payment to each  Noteholder  a copy of the  statement  for the  related  Monthly
Period or Periods  applicable to such  Distribution Date as required pursuant to
Section 4.09 of the Trust Sale and Servicing Agreement.

                                  ARTICLE VIII
                      ACCOUNTS, DISBURSEMENTS AND RELEASES

     SECTION 8.1  Collection of Money.  Except as otherwise  expressly  provided
herein,  the  Indenture  Trustee may demand  payment or  delivery  of, and shall
receive and collect,  directly and without  intervention  or  assistance  of any
fiscal agent or other  intermediary,  all money and other property payable to or
receivable by the  Indenture  Trustee  pursuant to this  Indenture and the Trust
Sale and Servicing  Agreement.  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

                                       45

<PAGE>

such action shall be without  prejudice to any right to claim a Default or Event
of Default under this Indenture and any right to proceed  thereafter as provided
in Article V.

     SECTION 8.2 Designated Accounts; Payments.

     (a) On or prior to the Closing Date, the Issuer shall cause the Servicer to
establish and maintain,  in the name of the Indenture Trustee for the benefit of
the Financial Parties (and with respect to the Reserve Account,  for the benefit
of the Servicer) the Designated Accounts as provided in Articles IV and V of the
Trust Sale and Servicing Agreement.

     (b) On or before each Distribution  Date, (i) amounts shall be deposited in
the  Collection  Account  as  provided  in  Section  4.06 of the Trust  Sale and
Servicing Agreement and (ii) the Aggregate  Noteholders' Interest  Distributable
Amount and the Aggregate  Noteholders'  Principal  Distributable Amount shall be
transferred from the Collection Account to the Note Distribution  Account as and
to the  extent  provided  in  Section  4.06  of the  Trust  Sale  and  Servicing
Agreement.

     (c) On each  Distribution  Date, the Indenture  Trustee shall apply and, as
required,  distribute  to the  Noteholders  all  amounts  on deposit in the Note
Distribution Account (subject to the Servicer's rights under Section 5.03 of the
Trust Sale and  Servicing  Agreement to  Investment  Earnings) in the  following
order of priority and in the amounts determined as described below:

          (i) The Aggregate  Noteholders' Interest Distributable Amount shall be
     applied to each class of Notes in an amount equal to the sum of

                    (A) the Noteholders' Interest  Distributable Amount for such
               class of Notes for such Distribution Date plus

                    (B)  if  there  was  any  Noteholders'   Interest  Carryover
               Shortfall   as  of  the  close  of  the   immediately   preceding
               Distribution  Date, a pro rata portion thereof  determined on the
               basis of the  amount of  interest  that was to be applied to such
               class on such preceding Distribution Date;

               provided,  however, that if there are not sufficient funds in the
               Note  Distribution  Account  to so  apply  the  entire  Aggregate
               Noteholders' Interest  Distributable Amount, the amount available
               in the  Note  Distribution  Account  for  such  purpose  shall be
               applied  to each  class  of Notes  pro  rata on the  basis of the
               respective  amount otherwise to be applied to such class pursuant
               to this clause (i).  The amount so applied to each class of Notes
               shall be paid to the Holders thereof on such Distribution Date.

                             (ii)  Unless  otherwise  provided  in clause  (iii)
               below,  an amount equal to the Aggregate  Noteholders'  Principal
               Distributable Amount (or such lesser amount as has been

                                       46

<PAGE>

               deposited in the Note  Distribution  Account  pursuant to Section
               4.06(c)(v)  of the Trust Sale and Servicing  Agreement)  shall be
               applied to each class of Notes in the  following  amounts  and in
               the  following  order of priority and any amount so applied shall
               be paid on such Distribution Date to the Holders of such class of
               Notes:

                                (A) Except during a Sequential Amortization
                                    Period:

                                        (1) On each  Distribution  Date that is
                                            not a  Targeted Final Distribution
                                            Date for any class of Class A Notes,

                                            (x) to the Variable Pay Revolving
                                                Notes as set forth in clause
                                                (iv) below, until the
                                                Outstanding Amount attributable
                                                to all Variable Pay Revolving
                                                Notes is reduced to zero, and

                                            (y) the remainder, if any, to the
                                                Accumulation Account.

                                        (2) On each Distribution Date that is
                                            the Targeted Final Distribution Date
                                            for a class of Class A Notes,

                                            (x) first, to such class of Class A
                                                Notes, until the Outstanding
                                                Amount attributable to such
                                                class is reduced to zero;

                                            (y) second, to the  Variable Pay
                                                Revolving Notes as set forth in
                                                clause (iv) below, until the
                                                Outstanding Amount attributable
                                                to all Variable Pay Revolving
                                                Notes is reduced to zero; and

                                            (z) the remainder, if any, to the
                                                Accumulation Account so long as
                                                any Note is outstanding.

                                (B) During  a  Curable   Sequential Amortization
                                    Period, to the class of Class A Notes, the
                                    Outstanding  Amount of which was not reduced
                                    to zero on its Final  Targeted  Distribution
                                    Date and the Variable Pay Revolving  Notes,
                                    pro rata, based upon  the  Noteholders'
                                    Principal   Distributable Amount  for such
                                    class  of Class A Notes and the Noteholders'
                                    Principal Distributable Amount for all
                                    Variable Pay Revolving Notes, as follows:

                                        (1) Payments allocable to such calss of
                                            Class A Notes shall be paid to such
                                            class  until  the Outstanding Amount
                                            attributable to such class is
                                            reduced to zero; and

                                       47

<PAGE>

                                        (2) Payments allocable to the Variable
                                            Pay Revolving Notes shall be applied
                                            as set  forth in clause (iv) below.

                                (C) During an  Extended  Sequential Amortization
                                    Period,  to the Class A Notes and the
                                    Variable Pay Revolving  Notes, pro rata,
                                    based upon the aggregate outstanding amount
                                    of all Class A Notes and the aggregate
                                    outstanding  amount of all Variable Pay
                                    Revolving Notes as follows:

                                        (1) Payments allocable to the Class A
                                            Notes   shall  be applied to each
                                            class  of  Class A Notes in the
                                            following  amounts and in the
                                            following order of priority:

                                            (w) first, to the Class A-1 Notes,
                                                until the Outstanding Amount of
                                                the Class A-1 Notes is reduced
                                                to zero;

                                            (x) second, to the Class A-2 Notes,
                                                until the Outstanding Amount of
                                                the Class A-2 Notes is reduced
                                                to zero;

                                            (y) third, to the Class A-3 Notes,
                                                until the Outstanding Amount
                                                of the Class A-3 Notes is
                                                reduced to zero;

                                            (z) fourth, to the Class A-4 Notes,
                                                until the Outstanding Amount
                                                of the Class A-4 Notes is
                                                reduced to zero.

                                        (2) Payments allocable to the Variable
                                            Pay Revolving  Notes shall be
                                            applied  as set  forth in clause
                                            (iv) below.

          (iii) If the Notes  have been  declared  immediately  due and  payable
     following an Event of Default as provided in Section  5.2,  until such time
     as all Events of Default  have been cured or waived as  provided in Section
     5.2(b),  any  amounts  remaining  in the Note  Distribution  Account or the
     Accumulation Account after the applications  described in Section 8.2(c)(i)
     and any amounts  then on deposit or  deposited  into the Note  Distribution
     Account  or the  Accumulation  Account  thereafter  shall be applied to the
     repayment  of principal on each class of the Notes pro rata on the basis of
     the respective  unpaid  principal  amount of each such Note and paid to the
     Holders thereof on such Distribution Date.

          (iv) Payments  allocable to the Variable Pay Revolving  Notes pursuant
     to clause  (ii)  above  shall be  applied  to each  class of  Variable  Pay
     Revolving Notes  sequentially  according to date of issuance,  such that no
     payments will be made to any class of Variable

                                       48

<PAGE>

     Pay  Revolving  Notes  until the  Outstanding  Amounts  on all  classes  of
     Variable Pay  Revolving  Notes which were issued  earlier in time have been
     reduced to zero.

          SECTION 8.3 General Provisions Regarding Accounts.

     (a) So long as no Default or Event of Default  shall have  occurred  and be
continuing,  all or a portion of the funds in the  Designated  Accounts shall be
invested in Eligible  Investments  and reinvested by the Indenture  Trustee upon
Issuer Order, subject to the provisions of Section 5.01(b) of the Trust Sale and
Servicing  Agreement.  The Issuer shall not direct the Indenture Trustee to make
any  investment  of any  funds  or to  sell  any  investment  held in any of the
Designated  Accounts unless the security  interest granted and perfected in such
account  shall  continue to be perfected in such  investment  or the proceeds of
such sale,  in either case  without any  further  action by any Person,  and, in
connection  with  any  direction  to the  Indenture  Trustee  to make  any  such
investment  or sale,  if requested by the  Indenture  Trustee,  the Issuer shall
deliver  to the  Indenture  Trustee an  Opinion  of  Counsel  acceptable  to the
Indenture Trustee, to such effect.

     (b) Subject to Section 6.1(c),  the Indenture  Trustee shall not in any way
be held liable by reason of any insufficiency in any of the Designated  Accounts
resulting from any loss on any Eligible  Investment  included therein except for
losses  attributable to the Indenture Trustee's failure 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.

     (c) If (i) the Issuer shall have failed to give  investment  directions for
any funds on deposit in the  Designated  Accounts  to the  Indenture  Trustee by
11:00  a.m.,  New York  City  Time (or such  other  time as may be agreed by the
Issuer and the  Indenture  Trustee)  on any  Business  Day; or (ii) a Default or
Event of Default shall have occurred and be continuing with respect to the Notes
but the Notes shall not have been  declared due and payable  pursuant to Section
5.2,  or, if such Notes shall have been  declared  due and payable  following an
Event of Default,  but amounts collected or receivable from the Trust Estate are
being  applied in  accordance  with  Section 5.5 as if there had not been such a
declaration;   then  the  Indenture   Trustee  shall,   to  the  fullest  extent
practicable, invest and reinvest funds in the Designated Accounts in one or more
Eligible Investments selected by the Indenture Trustee.

     SECTION 8.4 Release of Trust Estate.

     (a)  Subject to the  payment of its fees and  expenses  pursuant to Section
6.7, the  Indenture  Trustee may, and when  required by the  provisions  of this
Indenture shall,  execute  instruments to release property from the lien of this
Indenture,  or convey the Indenture  Trustee's interest in the same, in a manner
and  under  circumstances  that  are  consistent  with  the  provisions  of this
Indenture. No party relying upon an instrument executed by the Indenture Trustee
as provided

                                       49

<PAGE>

in this  Article  VIII  shall be  bound to  ascertain  the  Indenture  Trustee's
authority,  inquire into the satisfaction of any conditions  precedent or see to
the application of any monies.

     (b) The  Indenture  Trustee  shall,  at such  time as  there  are no  Notes
Outstanding  and all sums due to the Indenture  Trustee  pursuant to Section 6.7
have been paid and all amounts owing under each Third Party Instrument have been
paid,  release any remaining  portion of the Trust Estate that secured the Notes
and the other Secured Obligations from the lien of this Indenture and release to
the Issuer or any other Person entitled thereto any funds then on deposit in the
Designated Accounts.  The Indenture Trustee shall release property from the lien
of this Indenture  pursuant to this Section 8.4(b) only upon receipt by it of an
Issuer  Request  and an  Officer's  Certificate,  an Opinion of Counsel  and (if
required by the TIA)  Independent  Certificates  in  accordance  with TIA ss.ss.
314(c) and 314(d)(1) meeting the applicable requirements of Section 11.1.

     SECTION 8.5 Opinion of Counsel.  The  Indenture  Trustee  shall  receive at
least  seven  days'  notice  when  requested  by the  Issuer to take any  action
pursuant to Section 8.4(a),  accompanied by copies of any instruments  involved,
and the Indenture  Trustee shall also require as a condition to such action,  an
Opinion of Counsel and a Materiality Opinion, 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
shall  not  materially  and  adversely  impair  the  security  for  the  Secured
Obligations  or the  rights  of the  Secured  Parties  in  contravention  of the
provisions of this Indenture;  provided,  however,  that such Opinion of Counsel
and  Materiality  Opinion  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 9.1 Supplemental Indentures Without Consent of Noteholders.

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

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

                                       50

<PAGE>

     Indenture  Trustee any property  subject or required to be subjected to the
     lien of this Indenture, or to subject to additional property to the lien of
     this Indenture;

          (ii) to evidence the  succession,  in compliance with Section 3.10 and
     the applicable  provisions hereof, of another Person to the Issuer, and the
     assumption by any such  successor of the covenants of the Issuer  contained
     herein and in the Notes contained;

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

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

          (v) to cure any  ambiguity,  to correct or  supplement  any  provision
     herein or in any supplemental  indenture which may be inconsistent with any
     other  provision  herein or in any  supplemental  indenture or in any other
     Basic Document;

          (vi) to evidence  and provide for the  acceptance  of the  appointment
     hereunder  by a successor or  additional  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,  and  the  Indenture  Trustee  is  hereby
     authorized to join in the execution of any such supplemental  indenture and
     to make any further  appropriate  agreements and  stipulations  that may be
     therein contained.

     (b) The Issuer and the  Indenture  Trustee,  when  authorized  by an Issuer
Order,  may, also without the consent of any of the  Noteholders  but with prior
notice to the Rating  Agencies  at any time and from time to time enter into one
or more indentures  supplemental hereto for the purpose of adding any provisions
to,  changing in any  manner,  or  eliminating  any of the  provisions  of, this
Indenture or modifying  in any manner the rights of the  Noteholders  under this
Indenture;  provided,  however,  that such action  shall not, as evidenced by an
Opinion of Counsel,  adversely  affect in any material  respect the interests of
any Noteholder.

     SECTION 9.2 Supplemental Indentures With Consent of Noteholders.

                                       51

<PAGE>

     (a) The Issuer and the  Indenture  Trustee,  when  authorized  by an Issuer
Order,  also may, with prior notice to the Rating  Agencies 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,  changing in any manner,  or  eliminating  any of the
provisions  of, this  Indenture  or of modifying in any manner the rights of the
Noteholders under this Indenture;  provided,  however, that no such supplemental
indenture  shall,  without  the consent of the Holder of each  Outstanding  Note
affected thereby:

          (i) change the due date of any  instalment of principal of or interest
     on any Note,  or reduce the  principal  amount  thereof,  the interest rate
     applicable  thereto,  or the Redemption Price with respect thereto,  change
     any place of payment where,  or the coin or currency in which,  any Note or
     any 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, 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  as  provided  for  in  this
     Indenture;

          (iii) modify or alter the  provisions of the proviso to the definition
     of the term "Outstanding";

          (iv)  reduce the  percentage  of the  Outstanding  Amount of the Notes
     required to direct the  Indenture  Trustee to sell or  liquidate  the Trust
     Estate  pursuant  to  Section  5.4 if the  proceeds  of such sale  would be
     insufficient to pay the principal amount of and accrued but unpaid interest
     on the Outstanding Notes;

          (v) modify any  provision of this Section 9.2 to decrease the required
     minimum percentage necessary to approve any amendments to any provisions of
     this Indenture or any of the Basic Documents;

          (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  Distribution  Date  (including  the
     calculation of any of the individual  components of such  calculation),  or
     modify or alter the  provisions  of the  Indenture  regarding the voting of
     Notes held by the Issuer, the Seller or any Affiliate of either of them; or

                                       52

<PAGE>

          (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  thereto or
     deprive the Holder of any Note of the security afforded by the lien of this
     Indenture.

     (b) The Indenture  Trustee may in its discretion  determine  whether or not
any Notes would be affected (such that the consent of each  Noteholder  would be
required) by any supplemental  indenture  proposed  pursuant to this Section 9.2
and any such  determination  shall be  binding  upon the  Holders  of all Notes,
whether  authenticated  and delivered  thereunder  before or after the date upon
which such supplemental indenture becomes effective. The Indenture Trustee shall
not be liable for any such determination made in good faith.

     (c) It shall be sufficient if an Act of Noteholders approves the substance,
but not the form, of any proposed supplemental indenture.

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

     SECTION  9.3  Execution  of  Supplemental  Indentures.   In  executing,  or
permitting  the  additional  trusts  created  by,  any  supplemental   indenture
permitted by this Article IX or the modifications  thereby of the trusts created
by this  Indenture,  the  Indenture  Trustee  shall be entitled to receive,  and
subject to Sections 6.1 and 6.2,  shall be fully  protected in relying  upon, an
Opinion of Counsel stating that the execution of such supplemental  indenture is
authorized or permitted by this Indenture.  The Indenture Trustee may, but shall
not be obligated  to, enter into any such supple mental  indenture  that affects
the Indenture Trustee's own rights, duties, liabilities or immunities under this
Indenture or otherwise.

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

                                       53

<PAGE>

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

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

                                    ARTICLE X
                               REDEMPTION OF NOTES

     SECTION 10.1 Redemption.  The Redeemable Notes are subject to redemption in
whole,  but not in part,  upon the  exercise  by the  Servicer  of its option to
purchase  the  Receivables  pursuant  to  Section  8.01 of the  Trust  Sale  and
Servicing  Agreement.  The  date on which  such  redemption  shall  occur is the
Distribution Date following the Optional Purchase Date identified by Servicer in
its notice of exercise of such  purchase  option (the  "Redemption  Date").  The
purchase  price  for the  Redeemable  Notes  shall be  equal  to the  applicable
Redemption Price, provided the Issuer has available funds sufficient to pay such
amount.  The Servicer or the Issuer shall furnish the Rating  Agencies notice of
such  redemption.  If the Redeemable  Notes are to be redeemed  pursuant to this
Section  10.1,  the Servicer or the Issuer shall furnish  notice  thereof to the
Indenture  Trustee not later than 25 days prior to the  Redemption  Date and the
Indenture  Trustee  (based on such notice) shall  withdraw  from the  Collection
Account and deposit into the Note Distribution  Account, on the Redemption Date,
the aggregate Redemption Price of the Redeemable Notes, whereupon all such Notes
shall be due and payable on the Redemption Date.

     SECTION 10.2 Form of Redemption Notice.

     (a) Notice of redemption of the  Redeemable  Notes under Section 10.1 shall
be given by the Indenture Trustee by first-class mail,  postage prepaid,  mailed
not  less  than  five  days  prior  to the  applicable  Redemption  Date to each
Noteholder of Redeemable Notes of record at such Noteholder's  address appearing
in the Note Register.

     (b) All notices of redemption shall state:

                                       54

<PAGE>

          (i) the Redemption Date;

          (ii) the applicable Redemption Price; and

          (iii) the place  where  Redeemable  Notes  are to be  surrendered  for
     payment of the  Redemption  Price (which shall be the Agency  Office of the
     Indenture Trustee to be maintained as provided in Section 3.2).

     (c) Notice of  redemption  of the  Redeemable  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 Redeemable
Note shall not  impair or affect the  validity  of the  redemption  of any other
Redeemable Note.

     SECTION 10.3 Notes Payable on Redemption Date.

     The Redeemable  Notes shall,  following notice of redemption as required by
Section 10.2, on the  Redemption  Date cease to be  Outstanding  for purposes of
this  Indenture  and shall  thereafter  represent  only the right to receive the
applicable  Redemption Price and (unless the Issuer shall default in the payment
of such Redemption  Price) no interest shall accrue on such Redemption Price for
any period after the date to which accrued  interest is calculated  for purposes
of calculating such Redemption Price.

                                   ARTICLE XI
                                  MISCELLANEOUS

     SECTION 11.1 Compliance Certificates and Opinions, etc.

     (a) Upon any application or request by the Issuer to the Indenture  Trustee
to take any action  under any  provision  of this  Indenture,  the Issuer  shall
furnish to the Indenture Trustee: (i) an Officer's  Certificate stating that all
conditions  precedent,  if any,  provided for in this Indenture  relating to the
proposed action have been complied with, (ii) an Opinion of Counsel stating that
in the opinion of such counsel all such conditions precedent,  if any, have been
complied  with,  and (iii) (if required by the TIA) an  Independent  Certificate
from a firm of certified public accountants meeting the applicable  requirements
of this  Section  11.1,  except  that,  in the case of any such  application  or
request as to which the furnishing of such documents is specifically required by
any provision of this  Indenture,  no additional  certificate or opinion need be
furnished.  Every  certificate  or opinion  with  respect to  compliance  with a
condition or covenant provided for in this Indenture shall include:

                                       55

<PAGE>

          (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 judgment 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 with the Indenture  Trustee of any  Collateral
or other property or securities  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 Sec tion 11.1(a) or elsewhere in
this  Indenture,  furnish  to the  Indenture  Trustee an  Officer's  Certificate
certifying or stating the opinion of each Person signing such  certificate as to
the fair value (within 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  (b)(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 on 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 (b)(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  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)  Other  than  with  respect  to  the  release  of  any  Warranty
     Receivables,   Administrative   Receivables  or  Liquidating   Receivables,
     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

                                       56

<PAGE>

     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)  Whenever  the Issuer is  required  to  furnish to the  Indenture
     Trustee an Officer's  Certificate  certifying or stating the opinion of any
     signatory thereof as to the matters described in clause (b)(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  Warranty  Receivables,
     Administrative  Receivables  and  Liquidating  Receivables,  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
     (b)(iii)  above  and  this  clause  (b)(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 2.9 or any other provision of this Section
     11.1, the Issuer may (A) collect,  liquidate,  sell or otherwise dispose of
     Receivables  as  and to the  extent  permitted  or  required  by the  Basic
     Documents,  (B) make cash payments out of the  Designated  Accounts and the
     Certificate Distribution Account as and to the extent permitted or required
     by the Basic Documents and (C) take any other action not inconsistent  with
     the TIA.

          SECTION 11.2 Form of Documents Delivered to Indenture Trustee.

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

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

                                       57

<PAGE>

     (c) 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.

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

     SECTION 11.3 Acts of Noteholders.

     (a) Any request, demand, authorization,  direction, notice, consent, waiver
or other action  provided by this  Indenture to be given or taken by Noteholders
or a class  of  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  6.1)
conclusive  in favor of the  Indenture  Trustee and the  Issuer,  if made in the
manner provided in this Section 11.3.

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

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

     (d) Any request, demand, authorization,  direction, notice, consent, waiver
or other  action by the  Holder  of any  Notes  (or any one or more  Predecessor
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  11.4  Notices,  etc.,  to  Indenture  Trustee,  Issuer  and Rating
Agencies. Any request, demand, authorization, direction, notice, consent, waiver
or Act of Noteholders or other

                                       58

<PAGE>

documents  provided or  permitted by this  Indenture  to be made upon,  given or
furnished to or filed with:

     (a) 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

     (b) the  Issuer by the  Indenture  Trustee  or by any  Noteholder  shall be
sufficient  for  every  purpose  hereunder  if in  writing  and  either  sent by
electronic  facsimile  transmission  (with hard copy to follow  via first  class
mail) or mailed,  by certified mail,  return receipt requested to the Issuer and
the Owner Trustee each at the address  specified in Appendix B to the Trust Sale
and Servicing Agreement.

     The Issuer  shall  promptly  transmit  any notice  received  by it from the
Noteholders  to the  Indenture  Trustee.  The Indenture  Trustee shall  likewise
promptly transmit any notice received by it from the Noteholders to the Issuer.

     (c) Notices  required to be given to the Rating  Agencies by the Issuer and
the  Indenture  Trustee or the Owner  Trustee shall be delivered as specified in
Appendix B to the Trust Sale and Servicing Agreement.

     SECTION 11.5 Notices to Noteholders; Waiver.

     (a) Where this  Indenture  provides for notice to Noteholders of any event,
such notice shall be  sufficiently  given  (unless  otherwise  herein  expressly
provided) if it is in writing and mailed,  first-class,  postage prepaid to each
Noteholder affected by such event, at such Person'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.  If 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  Note holder 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 regardless of whether such notice is in fact actually received.

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

     (c) In case,  by reason of the  suspension  of  regular  mail  service as a
result of a strike,  work stoppage or similar activity,  it shall be impractical
to mail notice of any event of

                                       59

<PAGE>

Noteholders  when such notice is required to be given  pursuant to any provision
of  this  Indenture,  then  any  manner  of  giving  such  notice  as  shall  be
satisfactory to the Indenture  Trustee shall be deemed to be a sufficient giving
of such notice.

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

     SECTION 11.6 Alternate Payment and Notice Provisions.  Notwithstanding  any
provision of this Indenture or any of the Notes to the contrary,  the Issuer may
enter into any  agreement  with any 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 shall furnish to the Indenture Trustee a copy of
each such  agreement and the Indenture  Trustee shall cause  payments to be made
and notices to be given in accordance with such agreements.

     SECTION 11.7 Conflict with Trust Indenture Act.

     (a) If any provision  hereof  limits,  qualifies or conflicts  with another
provision hereof that is required to be included in this Indenture by any of the
provisions of the TIA, such required provision shall control.

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

     SECTION  11.8 Effect of  Headings  and Table of  Contents.  The Article and
Section  headings herein and the Table of Contents are for convenience  only and
shall not affect the construction hereof.

     SECTION 11.9 Successors and Assigns.

     (a) All  covenants and  agreements  in this  Indenture and the Notes by the
Issuer shall bind its successors and assigns, whether so expressed or not.

     (b) All covenants and agreements of the Indenture Trustee in this Indenture
shall bind its successors and assigns, whether so expressed or not.

                                       60

<PAGE>

     SECTION 11.10 Severability.

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

     SECTION 11.11 Benefits of Indenture.

     Nothing in this Indenture or in the Notes,  express or implied,  shall give
to any Person, other than the parties hereto and their successors hereunder, and
to   the   extent   expressly    provided   herein,    the   Noteholders,    the
Certificateholders,  any other party secured hereunder, any other Person with an
ownership  interest  in any part of the Trust  Estate  and any holder of a Third
Party Instrument,  any benefit or any legal or equitable right,  remedy or claim
under  this  Indenture.  The  holder  of a Third  Party  Instrument  shall  be a
third-party  beneficiary  to this  Agreement  only to the extent that it has any
rights specified herein or rights with respect to this Indenture specified under
the Swap Counterparty Rights Agreement.

     SECTION 11.12 Legal Holidays.

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

     SECTION 11.13 GOVERNING LAW.

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

     SECTION 11.14 Counterparts.

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

                                       61

<PAGE>

     SECTION 11.15 Recording of Indenture.

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

     SECTION 11.16 No Recourse.

     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:

     (a) the Indenture Trustee or the Owner Trustee in its individual capacity;

     (b) the Seller or any other owner of a  beneficial  interest in the Issuer;
or

     (c) any partner, owner, beneficiary,  agent, officer, director, employee or
agent of the Indenture Trustee or the Owner Trustee in its individual  capacity,
the Seller or any other 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  (or any of  their
successors or assigns),  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)  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 instalment or call owing to such entity.  For all purposes of
this  Indenture,  in the  performance of any duties or obligations of the Issuer
hereunder,  the Owner  Trustee shall be subject to, and entitled to the benefits
of,  the  terms  and  provisions  of  Articles  VI,  VII and  VIII of the  Trust
Agreement.

     SECTION 11.17 No Petition.

     The Indenture Trustee, by entering into this Indenture, and each Noteholder
and Note Owner,  by accepting a Note (or  interest  therein)  issued  hereunder,
hereby  covenant  and agree that they shall not,  prior to the date which is one
year and one day after the  termination  of this  Indenture  with respect to the
Issuer pursuant to Section 4.1, acquiesce, petition or otherwise invoke or cause
the  Seller or the  Issuer  to invoke  the  process  of any court or  government
authority  for the purpose of commencing or sustaining a case against the Seller
or the Issuer under any federal or state  bankruptcy,  insolvency or similar law
or appointing a receiver, liquidator, assignee, trustee,

                                       62

<PAGE>

custodian, sequestrator or other similar official of the Seller or the Issuer or
any substantial part of its property,  or ordering the winding up or liquidation
of the affairs of the Seller or the Issuer.

     SECTION 11.18 Inspection.

     The Issuer  agrees that, on  reasonable  prior notice,  it shall permit any
representative  of the Indenture  Trustee,  during the Issuer's  normal business
hours, to examine all the books of account,  records,  reports, and other papers
of the Issuer, to make copies and extracts therefrom,  to cause such books to be
audited by Independent certified public accountants, and to discuss the Issuer's
affairs,  finances  and  accounts  with the  Issuer's  officers,  employees  and
Independent  certified public  accountants,  all at such reasonable times and as
often as may be  reasonably  requested.  The  Indenture  Trustee shall and shall
cause its  representatives  to hold in confidence all such information except to
the extent  disclosure may be required by law (and all  reasonable  applications
for  confidential  treatment are  unavailing)  and except to the extent that the
Indenture  Trustee may reasonably  determine that such  disclosure is consistent
with its obligations hereunder.

     SECTION 11.19 Indemnification by and Reimbursement of the Servicer.

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

                                     * * * * *

                                       63

<PAGE>

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

                                  CAPITAL AUTO RECEIVABLES
                                  ASSET TRUST 2000-2

                                  By:  BANKERS TRUST (DELAWARE),
                                         not in its individual
                                         capacity but solely as
                                         Owner Trustee,

                                  By:    CHARLES C. GREITER
                                  __________________________
                                  Name:  Charles C. Greiter
                                  Title: Attorney-in-fact

                                  BANK ONE, NATIONAL ASSOCIATION,
                                  not in its individual capacity but solely as
                                  Indenture Trustee,

                                  By:    STEVEN M. WAGNER
                                  ___________________________
                                  Name:  Steven M. Wagner
                                  Title: First Vice President

<PAGE>

STATE OF ILLINOIS                                         )
                                                          )    ss.:
COUNTY OF COOK                                            )

     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 the
said Capital Auto Receivables Asset Trust 2000-2, a Delaware business trust, and
that he executed the same as the act of said business  trust for the purpose and
consideration therein expressed, and in the capacities therein stated.

     GIVEN  UNDER  MY HAND AND SEAL OF  OFFICE,  this the 14th day of  December,
2000.

                                ----------------------------------------------
                                Notary Public in and for the State of Illinois.

My commission expires:

----------------------------

<PAGE>

STATE OF ILLINOIS                                         )
                                                          )    ss.:
COUNTY OF COOK                                            )

     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 the said Bank One,  National
Association,  and that he executed the same as the act of said national  banking
association for the purpose and consideration therein stated.

     GIVEN  UNDER  MY HAND AND SEAL OF  OFFICE,  this the 14th day of  December,
2000.

                                 -----------------------------------------------

                                 Notary Public in and for the State of Illinois.

My commission expires:

----------------------------

<PAGE>

                                                                       EXHIBIT A

                                   LOCATION OF
                             SCHEDULE OF RECEIVABLES

     The Schedule of Receivables is on file at the offices of:

                             1. The Indenture Trustee

                             2. The Owner Trustee

                             3. General Motors Acceptance Corporation

                             4. Capital Auto Receivables, Inc.

<PAGE>

                                                                       EXHIBIT B

                        FORM OF NOTE DEPOSITORY AGREEMENT

<PAGE>

                                                                     EXHIBIT C-1

                              FORM OF OFFERED NOTES

REGISTERED                                                      $____________

No. R-

                       SEE REVERSE FOR CERTAIN DEFINITIONS

                                                            CUSIP NO. __________

          Unless this Note is presented by an authorized  representative  of The
     Depository Trust Company, a New York corporation  ("DTC"), to the Issuer or
     its agent for registration of transfer,  exchange or payment,  and any Note
     issued is  registered in the name of Cede & Co. or in such other name as is
     requested by an authorized  representative  of DTC (and any payment is made
     to Cede & Co. or to such  other  entity as is  requested  by an  authorized
     representative of DTC), ANY TRANSFER,  PLEDGE OR OTHER USE HEREOF FOR VALUE
     OR  OTHERWISE  BY OR TO ANY PERSON IS WRONGFUL  inasmuch as the  registered
     owner hereof, Cede & Co., has an interest herein.

          THE   PRINCIPAL  OF  THIS  NOTE  IS  PAYABLE  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.

                   CAPITAL AUTO RECEIVABLES ASSET TRUST 2000-2

                         CLASS A-__% ASSET BACKED NOTES

     CAPITAL AUTO RECEIVABLES ASSET TRUST 2000-2, a business trust organized and
existing  under the laws of the State of  Delaware  (herein  referred  to as the
"Issuer"),  for value received,  hereby promises to pay to  _______________,  or
registered assigns,  the principal sum of _______________  DOLLARS  ($_________)
payable in accordance with the Indenture (as defined on the reverse side of this
Note),  on each  Distribution  Date in an amount equal to the result obtained by
multiplying  (i) a fraction,  the  numerator  of which is the initial  principal
amount hereof and the denominator of which is aggregate initial principal amount
for such Class A-__ Notes by (ii) the aggregate  amount, if any, payable on such
Distribution Date from the Note Distribution  Account in respect of principal on
the Class A-__ Notes pursuant to Sections 2.7, 3.1 and 8.2(c) of

                                        1

<PAGE>

the Indenture;  provided,  however,  that the entire unpaid  principal amount of
this Note shall be due and  payable on the  earlier of  ___________  (the "Final
Scheduled  Distribution  Date") and the  Redemption  Date,  if any,  pursuant to
Section 10.1 of the Indenture. The Issuer shall pay interest on this Note at the
rate per annum shown above on each Distribution Date until the principal of this
Note is paid or made available for payment on the principal  amount of this Note
outstanding  on the  preceding  Distribution  Date (after  giving  effect to all
payments of  principal  made on the  preceding  Distribution  Date (or,  for the
initial  Distribution  Date, the  outstanding  principal  balance on the Closing
Date)).  Interest on this Note will accrue from and  including the Closing Date,
and  will  be  payable  on each  Distribution  Date in an  amount  equal  to the
Noteholders' Interest  Distributable Amount for such Distribution Date. Interest
will be computed on the basis of a 360-day year of twelve  30-day months (or, in
the case of the  initial  Distribution  Date,  33/360).  Such  principal  of and
interest  on this Note  shall be paid in the  manner  specified  on the  reverse
hereof.  All interest  payments on each class of Notes on any Distribution  Date
shall be made pro rata to the Noteholders of such class entitled thereto.

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

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

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

                                        2

<PAGE>

     IN WITNESS  WHEREOF,  the Issuer has caused this  instrument  to be signed,
manually or in facsimile, by its Authorized Officer.

Date:  December 14, 2000      CAPITAL AUTO RECEIVABLES ASSET
                              TRUST 2000-2,

                              By:  BANKERS TRUST (DELAWARE),
                              not in its individual capacity but solely as
                              Owner Trustee under the Trust Agreement

                              By:    CHARLES C. GREITER
                              ______________________________
                              Name:  Charles C. Greiter
                              Title: Attorney-in-fact

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                           BANK ONE, NATIONAL ASSOCIATION, not in its
                           individual capacity but solely as Indenture Trustee

                           By:    STEVEN M. WAGNER
                           ____________________________
                           Name:  Steven M. Wagner
                           Title: First Vice President

<PAGE>

                                                                 REVERSE OF NOTE

     This  Note  is one of a duly  authorized  issue  of  Notes  of the  Issuer,
designated  as its Class A-__ Asset  Backed Notes  (herein  called the "Class A-
Notes"),  all issued  under an  Indenture,  dated as of December  14, 2000 (such
Indenture,  as  supplemented  or  amended,  is herein  called the  "Indenture"),
between  the  Issuer  and  Bank  One,  National  Association,  as  trustee  (the
"Indenture  Trustee",  which  term  includes  any  successor  trustee  under the
Indenture), to which Indenture and all indentures supplemental thereto reference
is  hereby  made  for a  statement  of the  respective  rights  and  obligations
thereunder of the Issuer,  the Indenture Trustee and the Noteholders.  The Class
A-___ Notes are one of several  duly  authorized  classes of Notes of the Issuer
issued  pursuant  to the  Indenture  (collectively,  as to all Notes of all such
classes, the "Notes"). The Notes are governed by and subject to all terms of the
Indenture (which terms are incorporated herein and made a part hereof), to which
Indenture the Holder of this Note by virtue of acceptance  hereof assents and by
which such Holder is bound. All capitalized terms used and not otherwise defined
in this Note that are  defined in the  Indenture,  as  supplemented  or amended,
shall have the meanings assigned to them in or pursuant to the Indenture.

     The Class A-__ Notes and all other Notes issued  pursuant to the  Indenture
are and will be  equally  and  ratably  secured  by the  Collateral  pledged  as
security therefor as provided 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  Indenture  Trustee  or the Owner  Trustee in their
individual  capacities,  (ii) the  Seller  or any  other  owner of a  beneficial
interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer,
director  or  employee of the  Indenture  Trustee or the Owner  Trustee in their
individual  capacities,  any holder of a beneficial  interest in the Issuer, the
Owner  Trustee or the  Indenture  Trustee or of any  successor  or assign of the
Indenture Trustee or the Owner Trustee in their individual capacities, except as
any such  Person may have  expressly  agreed 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 instalment or call owing to such entity.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a
Note  Owner,  a  beneficial  interest  in a Note,  covenants  and agrees that by
accepting the benefits of the Indenture such  Noteholder  will not, prior to the
date which is one year and one day after the  termination of this Indenture with
respect to the  Issuer,  acquiesce,  petition or  otherwise  invoke or cause the
Seller or the Issuer to invoke the process of any court or government  authority
for the

                                        4

<PAGE>

purpose of  commencing  or  sustaining  a case  against the Seller or the Issuer
under any federal or state bankruptcy, insolvency or similar law or appointing a
receiver,  liquidator,  assignee,  trustee,  custodian,  sequestrator  or  other
similar  official  of the  Seller or the Issuer or any  substantial  part of its
property, or ordering the winding up or liquidation of the affairs of the Seller
or the Issuer.

     Each Noteholder, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note,  expresses its intention that this Note qualifies
under  applicable tax law as indebtedness  secured by the Collateral and, unless
otherwise required by appropriate taxing authorities,  agrees to treat the Notes
as  indebtedness  secured by the  Collateral  for the purpose of federal  income
taxes, state and local income and franchise taxes, Michigan single business tax,
and any other taxes imposed upon, measured by or based upon gross or net income.

     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 shall
be overdue,  and neither the Issuer,  the  Indenture  Trustee nor 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 Noteholders  under the Indenture at any time by the
Issuer with the consent of the Holders of Notes  representing  a majority of the
Outstanding  Amount of all the Notes.  The Indenture  also  contains  provisions
permitting  the  Holders  of Notes  representing  specified  percentages  of the
Outstanding  Amount of the 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 of 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 the Noteholders.

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

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

                                        5

<PAGE>

     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, neither the Seller, the Servicer, the Indenture
Trustee nor the Owner Trustee in their  respective  individual  capacities,  any
owner of a  beneficial  interest  in the  Issuer,  nor 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, or  performance  of, or
omission to  perform,  any of the  covenants,  obligations  or  indemnifications
contained in this Note or the Indenture, it being expressly understood that said
covenants,  obligations and indemnifications have been made by the Owner Trustee
solely as the Owner Trustee in the assets of the Issuer. The Holder of this Note
by the 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.

                                        6

<PAGE>
                                   ASSIGNMENT

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

---------------------------------

     FOR VALUE  RECEIVED,  the undersigned  hereby sells,  assigns and transfers
unto -----------------------------------------------
       ------------------------------------------------------------------
                         (name and address of assignee)

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

Dated:__________________                    __________________________________1
                                                    Signature Guaranteed:

-------------------------                   ----------------------------------

--------
  1 NOTE: 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.

<PAGE>
                                                                     EXHIBIT C-2

                       FORM OF VARIABLE PAY REVOLVING NOTE

REGISTERED                                                      $____________

No. R-

                       SEE REVERSE FOR CERTAIN DEFINITIONS

                                                                   CUSIP NO. N/A

               THE SECURITIES REPRESENTED BY THIS NOTE WERE ORIGINALLY ISSUED ON
          DECEMBER 14, 2000, HAVE NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT
          OF 1933, AS AMENDED (THE "ACT"),  OR APPLICABLE  STATE SECURITIES LAWS
          AND MAY NOT BE SOLD OR  TRANSFERRED  IN THE  ABSENCE  OF AN  EFFECTIVE
          REGISTRATION  STATEMENT UNDER THE ACT OR APPLICABLE  STATE  SECURITIES
          LAWS OR AN EXEMPTION FROM REGISTRATION THEREUNDER.

               THIS  NOTE  (AND  INTERESTS  THEREIN)  ARE  ALSO  SUBJECT  TO THE
          RESTRICTIONS SET FORTH IN THE INDENTURE REFERENCED BELOW.

               THE  PRINCIPAL  OF THIS  NOTE IS  PAYABLE  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.

                   CAPITAL AUTO RECEIVABLES ASSET TRUST 2000-2

       FLOATING RATE VARIABLE PAY ASSET BACKED REVOLVING NOTES, CLASS ___

     CAPITAL AUTO RECEIVABLES ASSET TRUST 2000-2, a business trust organized and
existing  under the laws of the State of  Delaware  (herein  referred  to as the
"Issuer"),  for value received,  hereby promises to pay to  _______________,  or
registered  assigns,  the principal balance  outstanding under this Variable Pay
Revolving  Note as shown on Schedule I attached  hereto,  payable in  accordance
with the  Indenture  (as  defined on the  reverse  side of this  Note),  on each
Distribution Date in an amount equal to the result obtained by multiplying (i) a
fraction, the

                                        1

<PAGE>

numerator of which is the principal  amount hereof and the  denominator of which
is the aggregate  principal amounts for all Variable Pay Revolving Notes,  Class
___ , by (ii) the aggregate  amount,  if any, payable on such  Distribution Date
from the Note  Distribution  Account in respect of principal on the Variable Pay
Revolving  Notes,  Class ___,  pursuant to Sections  2.7,  3.1 and 8.2(c) of the
Indenture;  provided,  however,  that the entire unpaid principal amount of this
Note shall be due and  payable on the  earlier of the  ___________  (the  "Final
Scheduled  Distribution  Date") and the  Redemption  Date,  if any,  pursuant to
Section  10.1 of the  Indenture.  The Issuer  shall pay interest on this Note on
each  Distribution  Date  until  the  principal  of  this  Note  is paid or made
available for payment on the principal  amount of this Note  outstanding  on the
preceding  Distribution  Date (after  giving effect to all payments of principal
made on the preceding  Distribution Date (or, for the initial Distribution Date,
the outstanding  principal balance on the Closing Date)).  Interest on this Note
will accrue from and  including  the Closing  Date,  and will be payable on each
Distribution Date in an amount equal to the Noteholders' Interest  Distributable
Amount for such Distribution Date. Interest will be computed on the basis of the
actual  number of days elapsed from and including  the prior  Distribution  Date
(or, in the case of the first  Distribution Date, from and including the Closing
Date) and a 360-day year.  Such  principal of and interest on this Note shall be
paid in the manner  specified on the reverse  hereof.  All interest  payments on
each  class  of  Notes on any  Distribution  Date  shall be made pro rata to the
Noteholders of such class entitled thereto.

     Subject  to the terms and  conditions  set forth  herein,  if on a Targeted
Final  Distribution  Date for any Class A Notes,  the Issuer  gives  notice,  by
telephone and confirmed in writing, by a duly approved agent thereof, requesting
an  Incremental  Advance in order to make  principal  payments on the applicable
Class A Notes on such Targeted Final  Distribution  Date, the Holder hereof may,
but shall not be  obligated  to,  agree to make such  Incremental  Advance.  The
amount of such  Incremental  Advance  shall  equal the amount  specified  by the
Issuer.

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

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

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

                                        2

<PAGE>

     IN WITNESS  WHEREOF,  the Issuer has caused this  instrument  to be signed,
manually or in facsimile, by its Authorized Officer.

Date:  December 14, 2000        CAPITAL AUTO RECEIVABLES ASSET
                                TRUST 2000-2,

                                By:  BANKERS TRUST (DELAWARE),
                                not in its individual capacity but solely as
                                Owner Trustee under the Trust Agreement

                                By:    CHARLES C. GREITER
                                ______________________________
                                Name:  Charles C. Greiter
                                Title: Attorney-in-fact

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                          BANK ONE, NATIONAL ASSOCIATION, not in its
                          individual capacity but solely as Indenture Trustee

                          By:    STEVEN M. WAGNER
                          ___________________________
                          Name:  Steven M. Wagner
                          Title: First Vice President

<PAGE>

                                 REVERSE OF NOTE

     This  Note  is one of a duly  authorized  issue  of  Notes  of the  Issuer,
designated as its Floating Rate Variable Pay Asset Backed Revolving Notes, Class
___ (herein  called the "Class ___ Variable Pay  Revolving  Notes"),  all issued
under  an  Indenture,  dated  as  of  December  14,  2000  (such  Indenture,  as
supplemented or amended,  is herein called the "Indenture"),  between the Issuer
and Bank One, National Association,  as trustee (the "Indenture Trustee",  which
term includes any successor trustee under the Indenture), to which Indenture and
all indentures  supplemental thereto reference is hereby made for a statement of
the respective  rights and obligations  thereunder of the Issuer,  the Indenture
Trustee and the Noteholders.  The Class ___ Variable Pay Revolving Notes are one
of multiple duly  authorized  classes of Notes of the Issuer issued  pursuant to
the Indenture (collectively,  as to all Notes of all such classes, the "Notes").
The Notes are governed by and subject to all terms of the Indenture (which terms
are incorporated  herein and made a part hereof),  to which Indenture the Holder
of this Note by virtue of acceptance  hereof assents and by which such Holder is
bound.  All capitalized  terms used and not otherwise  defined in this Note that
are  defined  in the  Indenture,  as  supplemented  or  amended,  shall have the
meanings assigned to them in or pursuant to the Indenture.

     The Class ___  Variable  Pay  Revolving  Notes and all other  Notes  issued
pursuant to the  Indenture  are and will be equally  and ratably  secured by the
Collateral pledged as security therefor as provided 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  Indenture  Trustee  or the Owner  Trustee in their
individual  capacities,  (ii) the  Seller  and any other  owner of a  beneficial
interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer,
director  or  employee of the  Indenture  Trustee or the Owner  Trustee in their
individual  capacities,  any holder of a beneficial  interest in the Issuer, the
Owner  Trustee or the  Indenture  Trustee or of any  successor  or assign of the
Indenture Trustee or the Owner Trustee in their individual capacities, except as
any such  Person may have  expressly  agreed 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 instalment or call owing to such entity.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a
Note  Owner,  a  beneficial  interest  in a Note,  covenants  and agrees that by
accepting the benefits of the Indenture such  Noteholder  will not, prior to the
date which is one year and one day after the  termination of this Indenture with
respect to the Issuer, acquiesce, petition or otherwise invoke or

                                        4

<PAGE>

cause the Seller or the Issuer to invoke the process of any court or  government
authority  for the purpose of commencing or sustaining a case against the Seller
or the Issuer under any federal or state  bankruptcy,  insolvency or similar law
or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator
or other similar official of the Seller or the Issuer or any substantial part of
its property,  or ordering the winding up or  liquidation  of the affairs of the
Seller or the Issuer.

     Each Noteholder, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note,  expresses its intention that this Note qualifies
under  applicable tax law as indebtedness  secured by the Collateral and, unless
otherwise required by appropriate taxing authorities,  agrees to treat the Notes
as  indebtedness  secured by the  Collateral  for the purpose of federal  income
taxes, state and local income and franchise taxes, Michigan single business tax,
and any other taxes imposed upon, measured by or based upon gross or net income.

     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 shall
be overdue,  and neither the Issuer,  the  Indenture  Trustee nor 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 Noteholders  under the Indenture at any time by the
Issuer with the consent of the Holders of Notes  representing  a majority of the
Outstanding  Amount of all the Notes.  The Indenture  also  contains  provisions
permitting  the  Holders  of Notes  representing  specified  percentages  of the
Outstanding  Amount of the 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 of 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 the Noteholders.

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

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

                                        5

<PAGE>

     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, neither the Seller, the Servicer, the Indenture
Trustee nor the Owner Trustee in their  respective  individual  capacities,  any
owner of a  beneficial  interest  in the  Issuer,  nor 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, or  performance  of, or
omission to  perform,  any of the  covenants,  obligations  or  indemnifications
contained in this Note or the Indenture, it being expressly understood that said
covenants,  obligations and indemnifications have been made by the Owner Trustee
solely as the Owner Trustee in the assets of the Issuer. The Holder of this Note
by the 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.

                                        6

<PAGE>

                                   SCHEDULE 1
                                TO REVOLVING NOTE

              Principal         Principal       Principal     Notation
             -
Date         Borrowed              Paid      Outstanding      Made by
----         --------              ----      -----------      -------

The  aggregate  unpaid  principal  balance  shown  on  this  schedule  shall  be
rebuttable  presumptive  evidence of the  principal  balance owing and unpaid on
this Note.  The  failure  to record  the date and amount of any  advance on this
schedule  shall not,  however,  limit or  otherwise  affect the  obligations  of
Capital  Auto  Receivables  Asset  Trust  2000-2  under  this  Note to repay the
outstanding  principal  balance  hereof  together  with  all  interest  accruing
thereon.

                                       7

<PAGE>

                                   ASSIGNMENT

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

---------------------------------

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

       ------------------------------------------------------------------
                         (name and address of assignee)

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

Dated:__________________                __________________________________2
                                              Signature Guaranteed:

-------------------------               -----------------------------

--------
  2 NOTE: 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.

                                        8
<PAGE>

                                                                     EXHIBIT C-3

                             FORM OF CLASS A-1 NOTE

REGISTERED                                                      $____________

No. R-

                       SEE REVERSE FOR CERTAIN DEFINITIONS

                                                                   CUSIP NO. N/A

               THE SECURITIES REPRESENTED BY THIS NOTE WERE ORIGINALLY ISSUED ON
               DECEMBER 14, 2000, HAVE NOT BEEN REGISTERED  UNDER THE SECURITIES
               ACT  OF  1933,  AS  AMENDED  (THE  "ACT"),  OR  APPLICABLE  STATE
               SECURITIES LAWS AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE
               OF  AN  EFFECTIVE   REGISTRATION   STATEMENT  UNDER  THE  ACT  OR
               APPLICABLE   STATE   SECURITIES   LAWS  OR  AN   EXEMPTION   FROM
               REGISTRATION THEREUNDER.

               THIS  NOTE  (AND  INTERESTS  THEREIN)  ARE  ALSO  SUBJECT  TO THE
               RESTRICTIONS SET FORTH IN THE INDENTURE REFERENCED BELOW.

               THE  PRINCIPAL  OF THIS  NOTE IS  PAYABLE  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.

                   CAPITAL AUTO RECEIVABLES ASSET TRUST 2000-2

                       CLASS A-1 6.593%ASSET BACKED NOTES

     CAPITAL AUTO RECEIVABLES ASSET TRUST 2000-2, a business trust organized and
existing  under the laws of the State of  Delaware  (herein  referred  to as the
"Issuer"),  for value received,  hereby promises to pay to  _______________,  or
registered assigns,  the principal sum of _______________  DOLLARS  ($_________)
payable in accordance with the Indenture (as defined on the reverse side of this
Note),  on each  Distribution  Date in an amount equal to the result obtained by
multiplying  (i) a fraction,  the  numerator  of which is the initial  principal
amount hereof and the  denominator  of which is aggregate  principal  amount for
such  Class A-1 Note,  by (ii) the  aggregate  amount,  if any,  payable on such
Distribution Date from the Note Distribution  Account in respect of principal on
the Class A-1 Note pursuant to

                                        1

<PAGE>

Sections  2.7,  3.1 and 8.2(c) of the  Indenture;  provided,  however,  that the
entire  unpaid  principal  amount of this Note  shall be due and  payable on the
earlier of the _______________ (the "Final Scheduled Distribution Date") and the
Redemption Date, if any,  pursuant to Section 10-1 of the Indenture.  The Issuer
shall  pay  interest  on this  Note at the rate per  annum  shown  above on each
Distribution Date until the principal of this Note is paid or made available for
payment  on the  principal  amount of this  Note  outstanding  on the  preceding
Distribution  Date (after giving effect to all payments of principal made on the
preceding  Distribution  Date  (or,  for  the  initial  Distribution  Date,  the
outstanding principal balance on the Closing Date)).  Interest on this Note will
accrue  from  and  including  the  Closing  Date,  and will be  payable  on each
Distribution Date in an amount equal to the Noteholders' Interest  Distributable
Amount for such Distribution Date. Interest will be computed on the basis of the
actual  number of days elapsed from and including  the prior  Distribution  Date
(or, in the case of the first  Distribution Date, from and including the Closing
Date) and a 360-day year.  Such  principal of and interest on this Note shall be
paid in the manner  specified on the reverse  hereof.  All interest  payments on
each  class  of  Notes on any  Distribution  Date  shall be made pro rata to the
Noteholders of such class entitled thereto.

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

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

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

                                        2

<PAGE>

     IN WITNESS  WHEREOF,  the Issuer has caused this  instrument  to be signed,
manually or in facsimile, by its Authorized Officer.

Date:                           CAPITAL AUTO RECEIVABLES ASSET
                                TRUST 2000-2,

                                By:  BANKERS TRUST (DELAWARE),
                                not in its individual capacity but solely as
                                Owner Trustee under the Trust Agreement

                                By:    CHARLES C. GREITER
                                ___________________________
                                Name:  Charles C. Greiter
                                Title: Attorney-in-fact

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                                BANK ONE, NATIONAL ASSOCIATION, not in
                                its individual capacity but solely as Indenture
                                Trustee

                                By:    STEVEN M. WAGNER
                                _____________________________
                                Name:  Steven M. Wagner
                                Title: First Vice President

<PAGE>

                                 REVERSE OF NOTE

     This  Note  is one of a duly  authorized  issue  of  Notes  of the  Issuer,
designated  as its Class A-1 Asset  Backed Notes  (herein  called the "Class A-1
Notes"),  all issued  under an  Indenture,  dated as of December  14, 2000 (such
Indenture,  as  supplemented  or  amended,  is herein  called the  "Indenture"),
between  the  Issuer  and  Bank  One,  National  Association,  as  trustee  (the
"Indenture  Trustee",  which  term  includes  any  successor  trustee  under the
Indenture), to which Indenture and all indentures supplemental thereto reference
is  hereby  made  for a  statement  of the  respective  rights  and  obligations
thereunder of the Issuer,  the Indenture Trustee and the Noteholders.  The Class
A-1 Notes are one of  multiple  duly  authorized  classes of Notes of the Issuer
issued  pursuant  to the  Indenture  (collectively,  as to all Notes of all such
classes, the "Notes"). The Notes are governed by and subject to all terms of the
Indenture (which terms are incorporated herein and made a part hereof), to which
Indenture the Holder of this Note by virtue of acceptance  hereof assents and by
which such Holder is bound. All capitalized terms used and not otherwise defined
in this Note that are  defined in the  Indenture,  as  supplemented  or amended,
shall have the meanings assigned to them in or pursuant to the Indenture.

     The Class A-1 Notes and all other Notes  issued  pursuant to the  Indenture
are and will be  equally  and  ratably  secured  by the  Collateral  pledged  as
security therefor as provided 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  Indenture  Trustee  or the Owner  Trustee in their
individual  capacities,  (ii) the  Seller  or any  other  owner of a  beneficial
interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer,
director  or  employee of the  Indenture  Trustee or the Owner  Trustee in their
individual  capacities,  any holder of a beneficial  interest in the Issuer, the
Owner  Trustee or the  Indenture  Trustee or of any  successor  or assign of the
Indenture Trustee or the Owner Trustee in their individual capacities, except as
any such  Person may have  expressly  agreed 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 instalment or call owing to such entity.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a
Note  Owner,  a  beneficial  interest  in a Note,  covenants  and agrees that by
accepting the benefits of the Indenture such  Noteholder  will not, prior to the
date which is one year and one day after the  termination of this Indenture with
respect to the  Issuer,  acquiesce,  petition or  otherwise  invoke or cause the
Seller or the Issuer to invoke the process of any court or government  authority
for the

                                        4

<PAGE>

purpose of  commencing  or  sustaining  a case  against the Seller or the Issuer
under any federal or state bankruptcy, insolvency or similar law or appointing a
receiver,  liquidator,  assignee,  trustee,  custodian,  sequestrator  or  other
similar  official  of the  Seller or the Issuer or any  substantial  part of its
property, or ordering the winding up or liquidation of the affairs of the Seller
or the Issuer.

     Each Noteholder, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note,  expresses its intention that this Note qualifies
under  applicable tax law as indebtedness  secured by the Collateral and, unless
otherwise required by appropriate taxing authorities,  agrees to treat the Notes
as  indebtedness  secured by the  Collateral  for the purpose of federal  income
taxes, state and local income and franchise taxes, Michigan single business tax,
and any other taxes imposed upon, measured by or based upon gross or net income.

     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 shall
be overdue,  and neither the Issuer,  the  Indenture  Trustee nor 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 Noteholders  under the Indenture at any time by the
Issuer with the consent of the Holders of Notes  representing  a majority of the
Outstanding  Amount of all the Notes.  The Indenture  also  contains  provisions
permitting  the  Holders  of Notes  representing  specified  percentages  of the
Outstanding  Amount of the 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 of 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 the Noteholders.

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

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

                                        5

<PAGE>

     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, neither the Seller, the Servicer, the Indenture
Trustee nor the Owner Trustee in their  respective  individual  capacities,  any
owner of a  beneficial  interest  in the  Issuer,  nor 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, or  performance  of, or
omission to  perform,  any of the  covenants,  obligations  or  indemnifications
contained in this Note or the Indenture, it being expressly understood that said
covenants,  obligations and indemnifications have been made by the Owner Trustee
solely as the Owner Trustee in the assets of the Issuer. The Holder of this Note
by the 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.

                                        6
<PAGE>

                                   ASSIGNMENT

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

---------------------------------

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

       ------------------------------------------------------------------
                         (name and address of assignee)

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

Dated:__________________            __________________________________3

                                             Signature Guaranteed:

-------------------------           ---------------------------------

--------
  3 NOTE: 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.

                                        7

<PAGE>

                                                                       EXHIBIT D

                              RULE 144A CERTIFICATE

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

Bank One, National Association,
as Indenture Trustee
1 Bank One Plaza, Mail Code 1-0126
Chicago, IL 60670 - 0126

Ladies and Gentlemen:

     In  connection  with the  purchase  of a Class A-1 Asset  Backed Note ( the
"Class A- 1 Note") or a Floating Rate Variable Pay Asset Backed  Revolving Note,
Class ___ (the  "Variable  Pay Revolving  Note,"and  together with the Class A-1
Notes, the "Private Notes") of the Capital Auto Receivables  Asset Trust 2000-2,
the undersigned buyer ("Buyer") hereby acknowledges, represents and agrees that:

     (a) Buyer is a "qualified  institutional  buyer" as defined under Rule 144A
under the Securities Act of 1933, as amended (the "Securities Act"),  acting for
its own account or for the accounts of other "qualified institutional buyers" as
defined under Rule 144A under the  Securities  Act.  Buyer is familiar with Rule
144A  under  the  Securities  Act and  Buyer is aware  that  the  seller  of the
applicable Private Note, as applicable, to the Buyer and other parties intend to
rely on the  statements  made  herein and the  exemption  from the  registration
requirements of the Securities Act provided by Rule 144A.

     (b) Buyer is purchasing the applicable Private Note for its own account (or
the accounts of other "qualified  institutional buyers"), not with a view to, or
for offer or sale in connection with, any distribution  thereof,  subject to the
disposition  of Buyer's  property  (or  property  held in the  accounts of other
"qualified  institutional buyers") being at all times within Buyer's control and
subject to Buyer's  ability to resell such  Private  Note  pursuant to Rule 144A
under the Securities Act. Buyer agrees to offer, sell or otherwise  transfer the
Private Note only in conformity  with the  restrictions on transfer set forth in
the  Indenture  dated as of December 14, 2000 pursuant to which the Private Note
were  issued  and the legend set forth on the  definitive  physical  certificate
evidencing the Private Note.

                                        8

<PAGE>

     (c)  Buyer   acknowledges   that  you  and   others   will  rely  upon  our
confirmations, acknowledgments and agreements set forth herein, and Buyer agrees
to notify you promptly in writing if any of the information  herein ceases to be
accurate and complete.

----------------------------------------
                                               Print Name of Buyer

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

                                               Name:

                                               Title:

                                               Date:
----------------------------------------

                                        9EXHIBIT 4.2

                                 TRUST AGREEMENT

                                     BETWEEN

                         CAPITAL AUTO RECEIVABLES, INC.
                                     SELLER

                                       AND

                            BANKERS TRUST (DELAWARE)
                                  OWNER TRUSTEE

                          DATED AS OF DECEMBER 14, 2000

<PAGE>
<TABLE>
<CAPTION>

                                TABLE OF CONTENTS

                                                                                        Page

ARTICLE I

    DEFINITIONS AND INCORPORATION BY REFERENCE 1
<S>                                                                                        <C>
         Section 1.1        Definitions ................................................    1

ARTICLE II

     ORGANIZATION ......................................................................    1
         Section 2.1        Name .......................................................    1
         Section 2.2        Office .....................................................    1
         Section 2.3        Purposes and Powers ........................................    1
         Section 2.4        Appointment of Owner Trustee ...............................    2
         Section 2.5        Initial Capital Contribution of Owner Trust Estate .........    2
         Section 2.6        Declaration of Trust .......................................    2
         Section 2.7        Liability of the Certificateholders ........................    3
         Section 2.8        Title to Trust Property ....................................    3
         Section 2.9        Situs of Trust .............................................    3
         Section 2.10       Representations and Warranties of the Seller................    3
         Section 2.11       Tax Treatment ..............................................    4

ARTICLE III

    THE CERTIFICATES ...................................................................    4
         Section 3.1        Initial Certificate Ownership ..............................    4
         Section 3.2        Form of the Certificates ...................................    4
         Section 3.3        Execution, Authentication and Delivery .....................    5
         Section 3.4        Registration; Registration of Transfer and
                            Exchange of Certificates ...................................    5
         Section 3.5        Mutilated, Destroyed, Lost or Stolen Certificates ..........    6
         Section 3.6        Persons Deemed Certificateholders ..........................    7
         Section 3.7        Access to List of Certificateholders' Names and Addresses ..    7
         Section 3.8        Maintenance of Corporate Trust Office ......................    7
         Section 3.9        Appointment of Paying Agent ................................    7
         Section 3.10       [Reserved] ................................................     8
         Section 3.11       Book-Entry Certificates ....................................    8
         Section 3.12       Notices to Clearing Agency .................................    9
         Section 3.13       Definitive Certificates ....................................    9
         Section 3.14       Seller as Certificateholder ................................   10

                                      -i-
<PAGE>

ARTICLE IV

    ACTIONS BY OWNER TRUSTEE ...........................................................   10
         Section 4.1        Prior Notice to Certificateholders with Respect to
                            Certain Matters ............................................   10
         Section 4.2        Action by Certificateholders with Respect to
                            Certain Matters ............................................   10
         Section 4.3        Action by Certificateholders with Respect to Bankruptcy.....   11
         Section 4.4        Restrictions on Certificateholders' Power ..................   11
         Section 4.5        Majority Control ...........................................   11

ARTICLE V

    APPLICATION OF TRUST FUNDS; CERTAIN DUTIES .........................................   11
         Section 5.1        Establishment of Certificate Distribution Account ..........   11
         Section 5.2        Application of Trust Funds .................................   12
         Section 5.3        Method of Payment ..........................................   13
         Section 5.4        Accounting and Reports to the Certificateholders,
                            the Internal Revenue Service and Others ....................   13
         Section 5.5        Signature on Returns; Other Tax Matters ....................   13

ARTICLE VI

     THE OWNER TRUSTEE .................................................................   14
         Section 6.1        Duties of Owner Trustee ....................................   14
         Section 6.2        Rights of Owner Trustee ....................................
         Section 6.3        Acceptance of Trusts and Duties ............................   15
         Section 6.4        Action upon Instruction by Certificateholders ..............   17
         Section 6.5        Furnishing of Documents ....................................   17
         Section 6.6        Representations and Warranties of Owner Trustee ............   17
         Section 6.7        Reliance; Advice of Counsel ................................   18
         Section 6.8        Owner Trustee May Own Certificates and Notes ...............   19
         Section 6.9        Compensation and Indemnity .................................   19
         Section 6.10       Replacement of Owner Trustee ...............................   19
         Section 6.11       Merger or Consolidation of Owner Trustee ...................   20
         Section 6.12       Appointment of Co-Trustee or Separate Trustee ..............   20
         Section 6.13       Eligibility Requirements for Owner Trustee .................   21

                                      -ii-
<PAGE>

ARTICLE VII

    TERMINATION OF TRUST AGREEMENT .....................................................   22
         Section 7.1        Termination of Trust Agreement .............................   22

ARTICLE VIII

    AMENDMENTS .........................................................................   23
         Section 8.1        Amendments Without Consent of Certificateholders or
                            Noteholders ................................................   23
         Section 8.2        Amendments With Consent of Certificateholders and
                            Noteholders ................................................   23
         Section 8.3        Form of Amendments .........................................   24

ARTICLE IX

    MISCELLANEOUS ......................................................................   25
         Section 9.1        No Legal Title to Owner Trust Estate .......................   25
         Section 9.2        Limitations on Rights of Others ............................   25
         Section 9.3        Derivative Actions .........................................   25
         Section 9.4        Notices ....................................................   25
         Section 9.5        Severability ...............................................   25
         Section 9.6        Counterparts ...............................................   25
         Section 9.7        Successors and Assigns .....................................   26
         Section 9.8        No Petition ................................................   26
         Section 9.9        No Recourse ................................................   26
         Section 9.10       Headings ...................................................   26
         Section 9.11       Governing Law ..............................................   26
         Section 9.12       Certificate Transfer Restrictions ..........................   26
         Section 9.13       Indemnification by and Reimbursement of the Servicer .......   27

                                     -iii-
<PAGE>

                                    EXHIBITS

Exhibit A  Form of Certificate
Exhibit B  Form of Certificate of Trust
Exhibit C  Undertaking Letter

                                      -iv-
</TABLE>

<PAGE>

     TRUST  AGREEMENT,  dated as of December  14,  2000,  between  CAPITAL  AUTO
RECEIVABLES,  INC.,  a  Delaware  corporation,  as  Seller,  and  BANKERS  TRUST
(DELAWARE), a Delaware banking corporation, as Owner Trustee.

     The Seller and the Owner Trustee hereby agree as follows:

                                   ARTICLE I
                   DEFINITIONS AND INCORPORATION BY REFERENCE

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

                                   ARTICLE II
                                  ORGANIZATION

     Section 2.1 Name . The Trust created hereby shall be known as "Capital Auto
Receivables  Asset Trust 2000-2" in which name the Owner Trustee may conduct the
business  of the Trust,  make and execute  contracts  and other  instruments  on
behalf  of the  Trust  and sue and be sued on  behalf  of the  Trust.  The Owner
Trustee is hereby  authorized to file the  Certificate of Trust on behalf of the
Trust pursuant to Section 3810(a) of the Business Trust Statute.

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

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

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

<PAGE>

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

        (iii)  to acquire  certain  property and assets from the Seller pursuant
to the Trust Sale and  Servicing  Agreement,  to make payments tothe Noteholders
and the Certificateholders, to make deposits into and  withdrawals   from  the
Reserve  Account  and  to  pay  the organizational, start-up and  transactional
expenses of the Trust;

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

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

        (vi)   to  engage  in  those   activities,   including   entering   into
agreements,  that  are  necessary,   suitable  or  convenient  to accomplish the
foregoing or are incidental thereto or connected therewith,  including  entering
into interest rate swaps and caps and other derivative instruments; and

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

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

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

     Section 2.5 Initial Capital Contribution of Owner Trust Estate . The Seller
hereby sells, assigns, transfers, conveys and sets over to the Owner Trustee, as
of the date hereof, the sum of $1. The Owner Trustee hereby acknowledges receipt
in trust from the Seller, as of the date hereof, of the foregoing  contribution,
which shall  constitute the initial Owner Trust Estate and shall be deposited in
the  Certificate  Distribution  Account.  The  Seller  shall pay  organizational
expenses of the Trust as they may arise or shall,  upon the request of the Owner
Trustee,  promptly reimburse the Owner Trustee for any such expenses paid by the
Owner Trustee.
<PAGE>

     Section 2.6  Declaration of Trust . The Owner Trustee hereby  declares that
it shall hold the Owner Trust Estate in trust upon and subject to the conditions
set forth herein for the use and benefit of the Certificate  Owners,  subject to
the obligations of the Trust under the Basic  Documents.  It is the intention of
the parties hereto that the Trust constitute a business trust under the Business
Trust Statute,  that this Agreement  constitute the governing instrument of such
business  trust and that the  Certificates  represent the  beneficial  interests
therein. The rights of the  Certificateholders  shall be determined as set forth
herein and in the  Business  Trust  Statute  and the  relationship  between  the
parties hereto created by this Agreement shall not constitute  indebtedness  for
any purpose.  Effective as of the date hereof,  the Owner Trustee shall have all
rights,  powers and duties set forth  herein and in the Business  Trust  Statute
with  respect  to  accomplishing  the  purposes  of the Trust.

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

     Section  2.8 Title to Trust  Property . Legal  title to all the Owner Trust
Estate  shall be vested at all times in the  Trust as a  separate  legal  entity
except where  applicable law in any  jurisdiction  requires title to any part of
the Owner  Trust  Estate to be vested in a trustee  or  trustees,  in which case
title shall be deemed to be vested in the Owner Trustee,  a co-trustee  and/or a
separate trustee, as the case may be.

     Section 2.9 Situs of Trust . The Trust shall be located and administered in
the States of Delaware or New York.  All bank  accounts  maintained by the Owner
Trustee on behalf of the Trust  shall be located in the State of Delaware or the
State of New York.  The Trust  shall not have any  employees  in any state other
than Delaware; provided, however, that nothing herein shall restrict or prohibit
the Owner Trustee from having employees within or without the State of Delaware.
Payments  shall be  received  by the Trust  only in  Delaware  or New York,  and
payments  will be made by the Trust  only from  Delaware  or New York.  The only
office of the Trust shall be the Corporate  Trust Office in Delaware.

     Section  2.10  Representations  and  Warranties  of the Seller . The Seller
hereby  represents  and warrants to the Owner Trustee that:
              (a) The Seller has been  duly  organized  and is validly  existing
        as a  corporation  in good standing  under the laws of the State of
        Delaware, with power and  authority to own its properties and to conduct
        its  business as such  properties are presently owned and such business
        is presently  conducted and had at all relevant  times, and  now  has,
        power, authority and legal right  to acquire  and  own  the Receivables.

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

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

              (d) The consummation of  the  transactions  contemplated  by  this
        Agreement and the  fulfillment  of the terms of this Agreement do  not
        conflict with,  result in any breach of any of the terms and  provisions
        of or constitute (with or without  notice or lapse of  time) a  default
        under,  the  certificate of  incorporation or by-laws  of the  Seller,
        or any  indenture, agreement or other instrument  to  which  the  Seller
        is a party  or by which it is   bound, or  result in  the  creation  or
        imposition of any Lien upon any of its properties pursuant to  the terms
        of any  such indenture,  agreement or other instrument (other than
        pursuant to the Basic Documents), or violate any law or, to the best of
        the Seller's knowledge, any order, rule or regulation  applicable to the
        Seller of any court or of any  federal  or state regulatory body,
        administrative agency or other governmental instrumentality having
        jurisdiction over the Seller or any of its properties.

     Section 2.11 Tax Treatment . The Seller and the Owner Trustee,  by entering
into this Agreement,  and the Certificateholders,  by acquiring any Certificates
or interest  therein,  (i) express their  intention that the  Certificates  will
qualify as equity interests in either (A) a division of the Seller, or any other
single Person,  disregarded as a separate entity for federal income tax purposes
if all Certificates are owned solely by the Seller or by such single Person,  or
(B) as a partnership  for federal  income tax purposes if the  Certificates  are
owned by more  than  one  Person  and  (ii)  unless  otherwise  required  by the
appropriate  taxing  authorities,  agree to treat  the  Certificates  as  equity
interests  in an entity as  described in clause (i) of this Section 2.11 for the
purposes of federal  income taxes,  state and local income and franchise  taxes,
Michigan single business tax, and any other taxes imposed upon,  measured by, or
based upon  gross or net  income.  The  parties  agree  that,  unless  otherwise
required by  appropriate  tax  authorities,  the Trust shall file or cause to be
filed annual or other necessary returns, reports and other forms consistent with
such characterization of the Trust for such tax purposes.

                                   ARTICLE III
                                THE CERTIFICATES

     Section 3.1 Initial Certificate Ownership . Upon the formation of the Trust
by the contribution by the Seller pursuant to Section 2.5 and until the issuance
of the Certificates, the Seller shall be the sole Certificateholder.
<PAGE>

     Section  3.2  Form of the  Certificates

       (a) The  Certificates  shall be  substantially  in the form set  forth in
Exhibit A and shall be issued in minimum  denominations  of $20,000 and integral
multiples of $1,000 in excess thereof;  provided,  however, that one Certificate
may  be  issued  in a  denomination  that  includes  any  residual  amount.  The
Certificates  shall represent the entire  beneficial  interest in the Trust. The
Certificates  shall be  executed  on behalf of the Trust by manual or  facsimile
signature of a Responsible  Officer of the Owner Trustee.  Certificates  bearing
the manual or facsimile  signatures  of  individuals  who were, at the time when
such  signatures  shall have been  affixed,  authorized to sign on behalf of the
Trust, shall be duly issued, fully paid and non-assessable  beneficial interests
in the Trust,  notwithstanding  that such  individuals or any of them shall have
ceased to be so  authorized  prior to the  authentication  and  delivery of such
Certificates  or did not hold such  offices  at the date of  authentication  and
delivery of such Certificates.

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

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

     Section 3.3 Execution,  Authentication and Delivery . Concurrently with the
sale of the  Receivables  to the Trust  pursuant to the Trust Sale and Servicing
Agreement,  the Owner  Trustee  shall  cause the  Certificates  in an  aggregate
principal  amount  equal to the  initial  Certificate  Balance to be executed on
behalf of the Trust, authenticated and delivered to or upon the written order of
the Seller,  signed by its  chairman  of the board,  its  president  or any vice
president,  without  further  corporate  action  by the  Seller,  in  authorized
denominations. No Certificate shall entitle its holder to any benefit under this
Agreement,  or shall be valid for any purpose, unless there shall appear on such
Certificate a certificate of authentication  substantially in the form set forth
in Exhibit A,  executed by the Owner Trustee or Bankers  Trust  Company,  as the
Owner Trustee's  authenticating agent, by manual signature.  Such authentication
shall constitute  conclusive evidence that such Certificate shall have been duly
authenticated and delivered hereunder.  All Certificates shall be dated the date
of their authentication.

     Section  3.4  Registration; Registration  of  Transfer  and  Exchange  of
     Certificates.

     (a) The Certificate Registrar shall keep or cause to be kept, at the office
or agency maintained  pursuant to Section 3.8, a Certificate  Register in which,
subject to such  reasonable  regulations as it may prescribe,  the Owner Trustee
shall  provide  for  the  registration  of  Certificates  and of  transfers  and
exchanges  of  Certificates  as  provided  herein;  provided,  however,  that no
Certificate   may  be  subdivided  upon  transfer  or  exchange  such  that  the
denomination  of any resulting  Certificate is less than $20,000.  Bankers Trust
Company shall be the initial  Certificate  Registrar.  Upon any resignation of a
Certificate Registrar,  the Owner Trustee shall promptly appoint a successor or,
if it elects not to make such an  appointment,  assume the duties of Certificate
Registrar.
<PAGE>

     (b) Upon surrender for  registration  of transfer of any Certificate at the
office or agency  maintained  pursuant to Section 3.8, the Owner  Trustee  shall
execute on behalf of the Trust, authenticate and deliver (or shall cause Bankers
Trust Company as its authenticating  agent to authenticate and deliver),  in the
name of the designated  transferee or transferees,  one or more new Certificates
in  authorized  denominations  of a like  aggregate  amount  dated  the  date of
authentication by the Owner Trustee or any authenticating agent. Notwithstanding
the foregoing, if the Seller has not delivered an Opinion of Counsel pursuant to
Section 9.12 to the Owner Trustee,  such transfer shall not be effective  unless
the  requirements  of Section 9.12 shall have been complied with.

     (c) At the  option of a Holder,  Certificates  may be  exchanged  for other
Certificates of authorized  denominations  of a like aggregate  principal amount
upon surrender of the Certificates to be exchanged at the Corporate Trust Office
maintained pursuant to Section 3.8. Whenever any Certificates are so surrendered
for  exchange,  the  Owner  Trustee  shall  execute  on  behalf  of  the  Trust,
authenticate   and  deliver  (or  shall  cause  Bankers  Trust  Company  as  its
authenticating agent to authenticate and deliver) one or more Certificates dated
the date of  authentication  by the Owner Trustee or any  authenticating  agent.
Such Certificates shall be delivered to the Holder making the exchange.

     (d) Every Certificate presented or surrendered for registration of transfer
or exchange  shall be  accompanied  by a written  instrument of transfer in form
satisfactory to the Owner Trustee and the Certificate Registrar duly executed by
the Holder or his attorney duly  authorized in writing and such other  documents
and  instruments  as  may  be  required  by  Section  3.4(b).  Each  Certificate
surrendered  for  registration  of transfer or  exchange  shall be canceled  and
subsequently  destroyed  or  otherwise  disposed  of by  the  Owner  Trustee  or
Certificate  Registrar in accordance  with its customary  practice.

     (e) The Owner Trustee or the Certificate Registrar may require payment of a
sum sufficient to cover any tax or  governmental  charge that may be imposed and
any other  expenses  of the Owner  Trustee in  connection  with any  transfer or
exchange of Certificates.

     Section 3.5 Mutilated, Destroyed, Lost or Stolen Certificates.

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

     (b) If,  after the  delivery  of a  replacement  Certificate  or payment in
respect of a destroyed, lost or stolen Certificate pursuant to Section 3.5(a), a
protected  purchaser  of  the  original   Certificate  in  lieu  of  which  such
replacement   Certificate   was  issued   presents  for  payment  such  original
Certificate,  the Owner  Trustee  shall be entitled to recover such  replacement
Certificate  (and any  distributions  or payments made with respect  thereto) or
such payment from the Person to whom it was  delivered or any Person taking such
replacement  Certificate from such Person to whom such  replacement  Certificate
was delivered or any assignee of such Person, except a protected purchaser,  and
shall be entitled to recover upon the security or indemnity provided therefor to
the extent of any loss, damage, cost or expense incurred by the Owner Trustee in
connection therewith.

     (c) In connection  with the issuance of any replacement  Certificate  under
this  Section  3.5,  the Owner  Trustee may require the payment by the Holder of
such  Certificate  of a sum  sufficient  to cover any tax or other  governmental
charge that may be imposed in relation thereto and any other reasonable expenses
(including  the fees and  expenses  of the  Owner  Trustee  and the  Certificate
Registrar)  connected  therewith.

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

     (e) The provisions of this Section 3.5 are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Certificates.

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

     Section 3.7 Access to List of Certificateholders' Names and Addresses . The
Owner  Trustee  shall  furnish or cause to be  furnished to the Servicer and the
Seller,  within 15 days after receipt by the Owner Trustee of a request therefor
from the Servicer or the Seller in writing, a list of the names and addresses of
the  Certificateholders  as of the most recent  Record  Date.  Each  Holder,  by
receiving and holding a Certificate,  shall be deemed to have agreed not to hold
any of the Servicer,  the Seller or the Owner Trustee  accountable  by reason of
the disclosure of its name and address, regardless of the source from which such
information was derived.
<PAGE>

     Section 3.8 Maintenance of Corporate Trust Office . The Owner Trustee shall
maintain in the Borough of Manhattan, the City of New York, an office or offices
or agency or agencies where  Certificates may be surrendered for registration of
transfer or exchange and where  notices and demands to or upon the Owner Trustee
in respect of the Certificates and the Basic Documents may be served.  The Owner
Trustee initially  designates the offices of Bankers Trust Company,  Four Albany
Street, New York, New York 10006, as its principal office for such purposes. The
Owner  Trustee  shall  give  prompt  written  notice  to the  Seller  and to the
Certificateholders  of any change in the location of the Certificate Register or
any such office or agency.

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

     Section 3.10 Initial Certificate Issuance . On the Closing Date, all of the
Certificates  shall be  issued  to the  Seller as  definitive  fully  registered
Certificates  (the "Initial  Definitive  Certificates").  The Seller may, at any
time  following  the  Closing  Date,  by notice to the Owner  Trustee,  make the
election  (a "Seller  Book-Entry  Election")  to have any or all of the  Initial
Definitive Certificates reissued as Book-Entry Certificates in connection with a
sale or other  transfer  of such  Certificates.
<PAGE>

     Section 3.11 Book-Entry  Certificates . Upon a Seller Book-Entry  Election,
any  Initial  Definitive  Certificates  which  the  Seller  elects  to  sell  as
Book-Entry  Certificates  (the  "Initial  Book-Entry   Certificates")  shall  be
reissued  in the form of a  printed  Certificate  or  Certificates  representing
Book-Entry  Certificates,  to be delivered to The Depository Trust Company,  the
initial  Clearing Agency by or on behalf of the Trust.  Such Initial  Book-Entry
Certificates  shall thereupon be registered on the  Certificate  Register in the
name  of  Cede  & Co.,  the  nominee  of  the  initial  Clearing  Agency  and no
Certificate  Owner shall  receive a  definitive  Certificate  representing  such
Certificate Owner's interest in such Certificate,  except as provided in Section
3.13.  Following  issuance of the Initial  Book-Entry  Certificates,  unless and
until  Definitive  Certificates  shall have been  issued to  Certificate  Owners
pursuant to Section 3.13:

               (a) the  provisions  of this  Section 3.11 shall be in full force
          and effect;

               (b) the  Certificate  Registrar  and the Owner  Trustee  shall be
          entitled  to deal with the  Clearing  Agency for all  purposes of this
          Agreement  (including  the payment of principal of and interest on the
          Certificates  and the giving of instructions or directions  hereunder)
          as the sole Holder of the Certificate, and shall have no obligation to
          the Certificate Owners;

               (c) to the  extent  that  the  provisions  of this  Section  3.11
          conflict with any other  provisions of this Agreement,  the provisions
          of this Section 3.11 shall control;

               (d) the rights of the Certificate  Owners shall be exercised only
          through the Clearing Agency and shall be limited to those  established
          by law and agreements between such Certificate Owners and the Clearing
          Agency  and/or the Clearing  Agency  Participants  and pursuant to the
          Certificate  Depository  Agreement in the form  attached as Exhibit C,
          unless  and until  Definitive  Certificates  are  issued  pursuant  to
          Section  3.13,  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 Certificates to
          such Clearing Agency Participants;

               (e) whenever  this  Agreement  requires or permits  actions to be
          taken based upon instructions or directions of Holders of Certificates
          evidencing  a  specified  percentage  of  the  Voting  Interests,  the
          Clearing  Agency shall be deemed to represent such  percentage only to
          the extent  that it has  received  instructions  to such  effect  from
          Certificate  Owners  and/or  Clearing  Agency  Participants  owning or
          representing,   respectively,   such  required  percentage  of  Voting
          Interests and has delivered such instructions to the Owner Trustee;

 provided,  however,  that the  provisions  of this  Section 3.11  shall  not be
 applicable in respect of  Certificates issued to the Seller.  The Seller or the
 Owner Trustee may set a record date for the purpose of determining the identity
 of Holders of Certificates entitled to vote or to consent to any action by vote
 as provided in this Agreement.
<PAGE>

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

     Section 3.13 Definitive  Certificates . After a Seller Book-Entry  Election
and  the  issuance  of  the  Initial   Book-Entry   Certificates,   if  (a)  the
Administrator  advises the Owner Trustee in writing that the Clearing  Agency is
no longer  willing  or able to  properly  discharge  its  responsibilities  with
respect  to the  Certificates  and the  Administrator  is  unable  to  locate  a
qualified  successor,  (b) the  Administrator  at its option  advises  the Owner
Trustee in writing that it elects to terminate the book-entry system through the
Clearing  Agency,  or (c)  after  the  occurrence  of an Event of  Default  or a
Servicer  Default,   Certificate  Owners   representing   beneficial   interests
aggregating  at least a majority  of the Voting  Interests  advise the  Clearing
Agency in writing  that the  continuation  of a  book-entry  system  through the
Clearing  Agency is no longer in the best  interest of the  Certificate  Owners,
then the  Clearing  Agency  shall  notify all  Certificate  Owners and the Owner
Trustee  of the  occurrence  of any  such  event  and  of  the  availability  of
definitive fully registered  Certificates  (the  "Definitive  Certificates")  to
Certificate  Owners  requesting the same. Upon surrender to the Owner Trustee of
the printed Certificate or Certificates representing the Book-Entry Certificates
by the Clearing  Agency,  accompanied by  registration  instructions,  the Owner
Trustee shall execute and authenticate the Definitive Certificates in accordance
with the instructions of the Clearing Agency.  Neither the Certificate Registrar
nor the  Owner  Trustee  shall  be  liable  for any  delay in  delivery  of such
instructions and may conclusively rely on, and shall be protected in relying on,
such  instructions.  Upon the  issuance of  Definitive  Certificates,  the Owner
Trustee  shall   recognize  the  Holders  of  the  Definitive   Certificates  as
Certificateholders.

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

                                   ARTICLE IV
                            ACTIONS BY OWNER TRUSTEE

     Section  4.1 Prior  Notice to  Certificateholders  with  Respect to Certain
Matters . The Owner  Trustee shall not take action with respect to the following
matters, unless (i) the Owner Trustee shall have notified the Certificateholders
in writing  of the  proposed  action at least 30 days  before the taking of such
action,  and (ii) the  Certificateholders  shall  not have  notified  the  Owner
Trustee  in writing  prior to the 30th day after such  notice is given that such
Certificateholders have withheld consent or provided alternative direction:
<PAGE>

               (a) the  initiation  of any claim or lawsuit by the Trust  (other
          than  an  action  to  collect  on a  Receivable  or an  action  by the
          Indenture Trustee pursuant to the Indenture) and the compromise of any
          action,  claim or lawsuit  brought by or against the Trust (other than
          an action to collect  on a  Receivable  or an action by the  Indenture
          Trustee pursuant to the Indenture);

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

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

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

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

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

      Section 4.2  Action by Certificateholders with Respect to Certain Matters.
The Owner Trustee shall not have the power, except upon the written direction of
the Certificateholders,  to  remove the Administrator under  the  Administration
Agreement  pursuant  to Section 10 thereof,  appoint a  successor  Administrator
pursuant  to Section 10 of the  Administration  Agreement,  remove the  Servicer
under the Trust Sale and Servicing Agreement pursuant to Section 7.02 thereof or
except as expressly provided in the Basic Documents, sell the Receivables or any
interest therein after the termination of the Indenture. The Owner Trustee shall
take the  actions  referred  to in the  preceding  sentence  only  upon  written
instructions  signed  by the  Certificateholders.

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

      Section 4.4  Restrictions  on Certificateholders'  Power . The
Certificateholders  shall not direct the Owner Trustee to take or refrain  from
taking any action if such action or inaction would be contrary to any obligation
of the Trust or the Owner Trustee under this Agreement or any of the Basic
Documents or would be contrary to Section 2.3, nor shall the Owner Trustee be
obligated to follow any such direction, if given. The Certificateholders  shall
not and shall not  direct  the Owner  Trustee  to take action that would violate
the provisions of Section 6.1 and, if given, the Owner Trustee  shall not be
obligated to follow any such  direction.

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

                                    ARTICLE V
                   APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

      Section 5.1  Establishment of Certificate Distribution Account .

     (a) Except as  otherwise  provided in Section 5.2,  the  Servicer,  for the
benefit of the  Certificateholders,  shall establish and maintain in the name of
the Trust an Eligible  Deposit  Account  known as the Capital  Auto  Receivables
Asset  Trust  2000-2   Certificate   Distribution   Account  (the   "Certificate
Distribution  Account"),  bearing an additional  designation  clearly indicating
that  the  funds   deposited   therein   are  held  for  the   benefit   of  the
Certificateholders.

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

Section 5.2    Application of Trust Funds .

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

     (b) On  each  Distribution  Date,  the  Owner  Trustee  shall  send to each
Certificateholder  the  statement  provided to the Owner Trustee by the Servicer
pursuant to Section  4.09(a) of the Trust Sale and  Servicing  Agreement on such
Distribution  Date  setting  forth,  among  other  things,  the  amount  of  the
distribution  allocable to Certificate Balance and to interest,  the Certificate
Balance  after giving  effect to such  distribution,  the balance of the Reserve
Account (and  amounts,  if any,  distributed  from the Reserve  Account) and the
Total Servicing Fee with respect to such Distribution Date or Monthly Period, as
applicable;  provided that no such statement shall be required to be sent by the
Owner  Trustee if and for so long as the  Seller is the sole  Certificateholder.

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

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

     Section  5.3 Method of Payment . Subject to Section  7.1(c),  distributions
required to be made to Certificateholders on any Distribution Date shall be made
to each  Certificateholder  of record  on the  related  Record  Date (i) by wire
transfer,  in immediately  available  funds,  to the account of such Holder at a
bank  or  other  entity  having  appropriate  facilities  therefor,  if (x)  the
Certificates are Definitive Certificates,  and such Certificateholder shall have
provided to the Certificate  Registrar appropriate written instructions at least
five Business Days prior to such Record Date and the distribution required to be
made to such  Holder  on such  Distribution  Date  exceeds  $100,000  or (y) the
Certificates are Book-Entry Certificates,  or, (ii) if neither clause (i)(x) nor
clause (i)(y) is applicable,  by check mailed to such  Certificateholder  at the
address of such Certificateholder appearing in the Certificate Register.

     Section 5.4 Accounting and Reports to the Certificateholders,  the Internal
Revenue  Service and Others . The Owner Trustee  shall  maintain (or cause to be
maintained)  the  books of the Trust on a  calendar  year  basis on the  accrual
method of accounting,  deliver to each Certificateholder,  as may be required by
the Code and applicable Treasury  Regulations or otherwise,  such information as
may be required to enable each  Certificateholder  to prepare its federal income
tax return,  file such tax returns relating to the Trust and make such elections
as may from time to time be required or appropriate  under any applicable  state
or federal  statute  or rule or  regulation  thereunder  so as to  maintain  the
Trust's  characterization  as an entity  described in clause (i) of Section 2.11
for  federal  income tax  purposes,  cause such tax  returns to be signed in the
manner  required by law and collect or cause to be collected any withholding tax
as described in and in accordance  with Section 5.2(c) with respect to income or
distributions  to  Certificateholders.  In the event that the  Internal  Revenue
Service were to contend  successfully  that the Trust is not a grantor trust but
is rather a  partnership  for  federal  income  tax  purposes,  the Trust  shall
allocate items of income,  gain, deduction and loss to the partners of the Trust
in  accordance  with their  economic  interests  in the Trust.  With  respect to
interest   expense   of  the   Trust,   the   Trust   shall   allocate   to  the
Certificateholders  their share of the entire amount of such  interest  expense.

     Section 5.5  Signature  on Returns;  Other Tax Matters . The Owner  Trustee
shall sign on behalf of the Trust any and all tax  returns of the Trust,  unless
applicable law requires a  Certificateholder  to sign such  documents,  in which
case such  documents  shall be signed by the  Seller.  To the  extent one may be
required, the Seller shall be the "tax matters partner" of the Trust pursuant to
the Code.
<PAGE>

                                   ARTICLE VI
                                THE OWNER TRUSTEE

      Section 6.1  Duties of Owner Trustee .

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

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

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

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

               (i) this  Section  6.1(d)  shall not limit the  effect of Section
          6.1(a) or (b);

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

               (iii) the Owner  Trustee  shall not be liable with respect to any
          action it takes or omits to take in good  faith in  accordance  with a
          direction received by it pursuant to Section 4.1, 4.2 or 6.4.

     (e) Subject to Sections 5.1 and 5.2,  monies  received by the Owner Trustee
hereunder need not be segregated in any manner except to the extent  required by
law or the Trust Sale and Servicing  Agreement  and may be deposited  under such
general  conditions as may be prescribed by law, and the Owner Trustee shall not
be liable for any interest thereon.
<PAGE>

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

     Section 6.2 Rights of Owner Trustee . The Owner  Trustee is authorized  and
directed  to execute and deliver the Basic  Documents  and each  certificate  or
other document  attached as an exhibit to or contemplated by the Basic Documents
to which the Trust is to be a party, in such form as the Seller shall approve as
evidenced  conclusively by the Owner Trustee's execution thereof. In addition to
the foregoing,  the Owner Trustee is authorized,  but shall not be obligated, to
take all actions  required of the Trust  pursuant  to the Basic  Documents.  The
Owner Trustee is further authorized from time to time to take such action as the
Administrator  recommends  and  directs  in  writing  with  respect to the Basic
Documents.

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

          (a) the  Owner  Trustee  shall at no time have any  responsibility  or
     liability   for,  or  with   respect  to,  the   legality,   validity   and
     enforceability  of any  Receivable,  or the  perfection and priority of any
     security  interest created by any Receivable in any Financed Vehicle or the
     maintenance of any such  perfection  and priority,  or for, or with respect
     to, the  sufficiency  of the Owner Trust  Estate or its ability to generate
     the payments to be distributed to  Certificateholders  under this Agreement
     or to Noteholders under the Indenture,  including,  without limitation: the
     existence,  condition and ownership of any Financed Vehicle;  the existence
     and enforceability of any insurance thereon;  the existence and contents of
     any Receivable on any computer or other record thereof; the validity of the
     assignment of any Receivable to the Trust or of any intervening assignment;
     the  completeness of any Receivable;  the performance or enforcement of any
     Receivable;  the compliance by the Seller or the Servicer with any warranty
     or representation  made under any Basic Document or in any related document
     or the accuracy of any such warranty or representation or any action of the
     Administrator,  the Trustee or the Servicer or any subservicer taken in the
     name of the Owner Trustee.
<PAGE>

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

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

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

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

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

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

     Section   6.4   Action   upon   Instruction   by    Certificateholders    .

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

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

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

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

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

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

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

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

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

     Section 6.7 Reliance; Advice of Counsel .

     (a) The Owner Trustee shall incur no liability to anyone in acting upon any
signature, instrument, notice, resolution, request, consent, order, certificate,
report,  opinion,  bond or other  document or paper believed by it to be genuine
and  believed  by it to be signed by the proper  party or  parties  and need not
investigate  any fact or matter in any such  document.  The  Owner  Trustee  may
accept a  certified  copy of a  resolution  of the board of  directors  or other
governing  body  of  any  corporate  party  as  conclusive  evidence  that  such
resolution has been duly adopted by such body and that the same is in full force
and effect. As to any fact or matter the method of the determination of which is
not  specifically  prescribed  herein,  the Owner  Trustee may for all  purposes
hereof rely on a  certificate,  signed by the president or any vice president or
by the treasurer or other authorized  officers of the relevant party, as to such
fact or matter,  and such  certificate  shall  constitute full protection to the
Owner Trustee for any action taken or omitted to be taken by it in good faith in
reliance thereon.

     (b) In the exercise or  administration  of the trusts  hereunder and in the
performance  of its duties and  obligations  under this  Agreement  or the Basic
Documents, the Owner Trustee: may act directly or through its agents, attorneys,
custodians  or  nominees  (including  the  granting  of a power of  attorney  to
officers of Bankers  Trust  Company to execute and deliver any Basic  Documents,
Certificate,  Note or other  documents  related  thereto  on behalf of the Owner
Trustee)  pursuant to  agreements  entered into with any of them,  and the Owner
Trustee  shall not be liable  for the  conduct  or  misconduct  of such  agents,
attorneys,  custodians  or nominees if such  agents,  attorneys,  custodians  or
nominees shall have been selected by the Owner Trustee with reasonable care; and
may consult with  counsel,  accountants  and other skilled  professionals  to be
selected with reasonable care and employed by it. The Owner Trustee shall not be
liable for anything done,  suffered or omitted in good faith by it in accordance
with the  opinion  or  advice of any such  counsel,  accountants  or other  such
Persons and not contrary to this Agreement or any Basic Document.
<PAGE>

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

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

Section 6.10      Replacement of Owner Trustee .

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

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

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

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

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

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

     (c) Any  resignation or removal of the Owner Trustee and appointment of
a successor Owner Trustee pursuant to any of the provisions of this Section 6.10
shall  not  become  effective  and no such  resignation  shall be deemed to have
occurred until a written acceptance of appointment is delivered by the successor
Owner Trustee to the outgoing Owner Trustee and the  Administrator  and all fees
and expenses due to the outgoing  Owner Trustee are paid.  Any  successor  Owner
Trustee appointed pursuant to this Section 6.10 shall be eligible to act in such
capacity in  accordance  with Section 6.13 and,  following  compliance  with the
preceding  sentence,  shall  become  fully  vested with all the rights,  powers,
duties and obligations of its predecessor under this Agreement, with like effect
as if originally named as Owner Trustee.  The Administrator shall provide notice
of such  resignation  or  removal  of the Owner  Trustee  to each of the  Rating
Agencies.

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

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

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

     Section   6.12   Appointment   of   Co-Trustee   or   Separate   Trustee

     (a)  Notwithstanding  any other provisions of this Agreement,  at any time,
for the purpose of meeting any legal  requirement of any  jurisdiction  in which
any part of the Owner Trust  Estate or any  Financed  Vehicle may at the time be
located,  the  Administrator  and the Owner Trustee acting jointly shall, at the
expense  of the  Servicer,  have the  power and  shall,  at the  expense  of the
Servicer,  execute and deliver all  instruments  to appoint one or more  Persons
approved  by the Owner  Trustee  to act as  co-trustee,  jointly  with the Owner
Trustee,  or as separate  trustee or  trustees,  of all or any part of the Owner
Trust Estate,  and to vest in such Person,  in such capacity,  such title to the
Trust, or any part thereof, and, subject to the other provisions of this Section
6.12, such powers, duties,  obligations,  rights and trusts as the Administrator
and the Owner Trustee may consider necessary or desirable.  If the Administrator
shall not have joined in such appointment within 15 days after the receipt by it
of a request so to do, the Owner Trustee alone shall have the power to make such
appointment.  No co-trustee or separate  trustee under this  Agreement  shall be
required to meet the terms of  eligibility  as a successor  trustee  pursuant to
Section  6.13 and no notice of the  appointment  of any  co-trustee  or separate
trustee shall be required pursuant to Section 6.10.

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

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

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

          (iii) the  Administrator  and the Owner Trustee  acting jointly may at
     any time  accept  the  resignation  of or remove  any  separate  trustee or
     co-trustee.

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

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

     Section 6.13 Eligibility Requirements for Owner Trustee . The Owner Trustee
shall at all times satisfy the requirement of Section 26(a)(1) of the Investment
Company  Act.  The  Owner  Trustee  shall  at all  times:  (a) be a  corporation
satisfying the provisions of Section 3807(a) of the Business Trust Statute;  (b)
be authorized to exercise  corporate trust powers;  (c) have a combined  capital
and surplus of at least $50,000,000 and be subject to supervision or examination
by federal  or state  authorities;  and (d) have (or have a parent  which has) a
long-term  unsecured  debt rating of at least BBB- by Standard & Poor's  Ratings
Services and at least Baa3 by Moody's  Investors  Service.  If such  corporation
shall publish reports of condition at least annually,  pursuant to law or to the
requirements of the aforesaid  supervising or examining authority,  then for the
purpose  of  this  Section  6.13,  the  combined  capital  and  surplus  of such
corporation  shall be deemed to be its combined capital and surplus as set forth
in its most recent  report of condition so  published.  If at any time the Owner
Trustee  shall cease to be eligible in  accordance  with the  provisions of this
Section 6.13, the Owner Trustee shall resign  immediately in the manner and with
the effect specified in Section 6.10.

                                  ARTICLE VII
                         TERMINATION OF TRUST AGREEMENT

     Section 7.1 Termination of Trust Agreement .

     (a) This Agreement  (other than Section 6.9) and the Trust shall  terminate
in  accordance  with  Section 3808 of the  Business  Trust  Statute and be of no
further  force or effect on the final  distribution  by the Owner Trustee of all
monies or other  property or proceeds  of the Owner Trust  Estate in  accordance
with  the  terms of the  Indenture,  the  Trust  Sale  and  Servicing  Agreement
(including  the  exercise  by  the  Servicer  of  its  option  to  purchase  the
Receivables  pursuant  to  Section  8.01(a)  of the  Trust  Sale  and  Servicing
Agreement),  the Interest Rate Swap and Article V. The bankruptcy,  liquidation,
dissolution,  death or incapacity of any Certificateholder shall not (x) operate
to terminate this Agreement or the Trust,  (y) entitle such  Certificateholder's
legal  representatives  or heirs to claim an accounting or to take any action or
proceeding  in any court for a partition or winding up of all or any part of the
Trust or the Owner Trust Estate or (z) otherwise affect the rights,  obligations
and  liabilities  of the  parties  hereto.
<PAGE>

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

     (c)  Subject to Section  5.2(a),  notice of any  termination  of the Trust,
specifying  the  Distribution  Date  upon  which  the  Certificateholders  shall
surrender  their  Certificates  to the  Paying  Agent for  payment  of the final
distribution and cancellation,  shall be given by the Owner Trustee by letter to
Certificateholders mailed within five Business Days of receipt of notice of such
termination  from the Servicer  given  pursuant to Section  8.01(c) of the Trust
Sale and Servicing  Agreement,  stating:  (i) the Distribution Date upon or with
respect  to  which  final  payment  of  the  Certificates  shall  be  made  upon
presentation and surrender of the Certificates at the office of the Paying Agent
therein  designated;  (ii) the amount of any such final payment;  and (iii) that
the  Record  Date  otherwise   applicable  to  such  Distribution  Date  is  not
applicable,  payments  being made only upon  presentation  and  surrender of the
Certificates  at the office of the Paying  Agent  therein  specified.  The Owner
Trustee shall give such notice to the  Certificate  Registrar (if other than the
Owner  Trustee)  and the  Paying  Agent  at the  time  such  notice  is given to
Certificateholders.  Upon  presentation and surrender of the  Certificates,  the
Paying  Agent  shall  cause  to be  distributed  to  Certificateholders  amounts
distributable on such  Distribution Date pursuant to Section 5.2.

     (d) If all of the Certificateholders shall not surrender their Certificates
for  cancellation  within six months  after the date  specified  in the  written
notice  referred to in Section  7.1(c),  the Owner  Trustee  shall give a second
written  notice  to  the  remaining   Certificateholders   to  surrender   their
Certificates for cancellation  and receive the final  distribution  with respect
thereto.  If within one year after the second notice all the Certificates  shall
not  have  been  surrendered  for  cancellation,  the  Owner  Trustee  may  take
appropriate steps, or may appoint an agent to take appropriate steps, to contact
the remaining Certificateholders concerning surrender of their Certificates, and
the cost  thereof  shall be paid out of the funds and other  assets  that  shall
remain  subject to this  Agreement.  Subject to applicable  laws with respect to
escheat of funds,  any funds  remaining  in the Trust after  exhaustion  of such
remedies in the preceding  sentence  shall be deemed  property of the Seller and
distributed by the Owner Trustee to the Seller, and the Owner Trustee shall have
no further  liability to the  Certificateholders  with respect thereto.

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

                                  ARTICLE VIII
                                   AMENDMENTS

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

     Section 8.2 Amendments With Consent of Certificateholders and Noteholders .
This  Agreement  may be  amended  from time to time by the  Seller and the Owner
Trustee  with the consent of  Noteholders  whose Notes  evidence not less than a
majority of the Outstanding Amount of the Notes as of the close of the preceding
Distribution  Date and the  consent  of  Certificateholders  whose  Certificates
evidence not less than a majority of the Voting Interests as of the close of the
preceding  Distribution  Date (which  consent,  whether  given  pursuant to this
Section 8.2 or  pursuant  to any other  provision  of this  Agreement,  shall be
conclusive and binding on such Person and on all future holders of such Notes or
Certificates  and of any Notes or Certificates  issued upon the transfer thereof
or in  exchange  thereof  or in lieu  thereof  whether or not  notation  of such
consent is made upon the Notes or  Certificates)  for the  purpose of adding any
provisions to or changing in any manner or eliminating  any of the provisions of
this  Agreement,  or of modifying in any manner the rights of the Noteholders or
the  Certificateholders;  provided,  however,  that no such amendment  shall (a)
increase  or reduce in any  manner the  amount  of, or  accelerate  or delay the
timing of, collections of payments on Receivables or distributions that shall be
required to be made on any Note or  Certificate,  the Pass  Through  Rate or the
Specified  Reserve  Account  Balance  or (b)  reduce  the  aforesaid  percentage
required to consent to any such amendment, without the consent of the holders of
all Notes and all of the Voting  Interests  with  respect to  Certificates  then
outstanding.  The Owner  Trustee  shall  furnish  notice  to each of the  Rating
Agencies prior to obtaining consent to any proposed amendment under this Section
8.2.
<PAGE>

     Section 8.3 Form of Amendments .

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

     (b) It shall not be necessary  for the consent of  Certificateholders,  the
Noteholders  or the  Indenture  Trustee  pursuant  to Section 8.2 to approve the
particular form of any proposed amendment or consent, but it shall be sufficient
if such consent  shall approve the  substance  thereof.  The manner of obtaining
such consents (and any other consents of Certificateholders provided for in this
Agreement or in any other Basic Document) and of evidencing the authorization of
the execution thereof by Certificateholders  shall be subject to such reasonable
requirements as the Owner Trustee may prescribe.

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

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

                                   ARTICLE IX
                                  MISCELLANEOUS

     Section 9.1 No Legal Title to Owner Trust  Estate . The  Certificateholders
shall  not  have  legal  title  to any  part  of the  Owner  Trust  Estate.  The
Certificateholders  shall be entitled to receive  distributions  with respect to
their undivided  ownership  interest  therein only in accordance with Articles V
and VII. No transfer, by operation of law or otherwise, of any right, title, and
interest of the  Certificateholders  to and in their  ownership  interest in the
Owner Trust  Estate  shall  operate to  terminate  this  Agreement or the trusts
hereunder or entitle any transferee to an accounting or to the transfer to it of
legal title to any part of the Owner Trust Estate.

     Section 9.2  Limitations on Rights of Others . Except for Section 9.13, the
provisions of this  Agreement  are solely for the benefit of the Owner  Trustee,
the  Seller,  the  Certificateholders,  the  Administrator  and,  to the  extent
expressly  provided  herein,  the  Indenture  Trustee and the  Noteholders,  and
nothing in this  Agreement,  whether  express or implied,  shall be construed to
give to any other  Person any legal or equitable  right,  remedy or claim in the
Owner Trust Estate or under or in respect of this  Agreement  or any  covenants,
conditions or provisions contained herein.
<PAGE>

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

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

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

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

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

     Section 9.6  Counterparts  . This  Agreement may be executed by the parties
hereto in separate  counterparts,  each of which when so executed and  delivered
shall be an original,  but all such counterparts  shall together  constitute one
and the same instrument.

     Section 9.7 Successors and Assigns . All covenants and agreements contained
herein shall be binding upon, and inure to the benefit of, the Seller, the Owner
Trustee and each Certificateholder and their respective successors and permitted
assigns, all as herein provided. Any request, notice, direction, consent, waiver
or other instrument or action by a  Certificateholder  shall bind the successors
and assigns of such Certificateholder.

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

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

     Section 9.10  Headings . The headings of the various  Articles and Sections
herein are for  convenience  of reference only and shall not define or limit any
of  the terms or provisions  hereof.

     Section  9.11  Governing  Law  .  THIS  AGREEMENT  SHALL  BE  CONSTRUED  IN
ACCORDANCE  WITH THE LAWS OF THE STATE OF  DELAWARE,  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 9.12 Certificate Transfer Restrictions . Unless the Seller delivers
to the Owner Trustee an Opinion of Counsel  stating that the  acquisition of the
Certificates  in the initial  issuance and  acquisition  or  disposition  of the
Certificates in the secondary market by Benefit Plans, and the continued holding
of the  Certificates  by Benefit Plans,  is exempted  under  Department of Labor
Prohibited  Transaction Exemption 2000-58 and any proposed sale or transfer to a
Benefit  Plan  will  qualify  with  all  requirements  of  such  exemption,  the
Certificates  may not be acquired by or for the  account of a Benefit  Plan.  If
such  Opinion  of Counsel  is not  delivered,  (x) by  accepting  and  holding a
Certificate,  the Holder thereof and the Certificate  Owner shall each be deemed
to  have  represented  and  warranted  that it is not a  Benefit  Plan  and,  if
requested  to do so by the Seller,  the  Certificateholder  and the  Certificate
Owner shall  execute and deliver to the Owner Trustee an  Undertaking  Letter in
the form set forth in  Exhibit C and (y) each  certificate  shall be  stamped or
otherwise  imprinted with a legend in  substantially  the following  form:
<PAGE>

     "THIS  CERTIFICATE  MAY NOT BE  ACQUIRED  BY OR FOR THE  ACCOUNT  OF (i) AN
     "EMPLOYEE  BENEFIT  PLAN"  (AS  DEFINED  IN  SECTION  3(3) OF THE  EMPLOYEE
     RETIREMENT  INCOME  SECURITY ACT OF 1974,  AS AMENDED,  ("ERISA"))  THAT IS
     SUBJECT TO THE  PROVISIONS  OF TITLE I OF ERISA,  (ii) A PLAN  DESCRIBED IN
     SECTION  4975(e)(1) OF THE INTERNAL  REVENUE CODE OF 1986,  AS AMENDED,  OR
     (iii) ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF A
     PLAN'S INVESTMENT IN THE ENTITY. BY ACCEPTING AND HOLDING THIS CERTIFICATE,
     THE HOLDER  HEREOF AND THE  CERTIFICATE  OWNER SHALL EACH BE DEEMED TO HAVE
     REPRESENTED AND WARRANTED THAT IT IS NOT A BENEFIT PLAN."

The  Certificates  are also  subject to the minimum  denomination  specified  in
Section 3.4(a).

     Section 9.13  Indemnification  by and  Reimbursement  of the Servicer . The
Owner  Trustee  acknowledges  and agrees to  reimburse  (i) the Servicer and its
directors,  officers, employees and agents in accordance with Section 6.03(b) of
the Trust Sale and Servicing  Agreement  and (ii) the Seller and its  directors,
officers, employees and agents in accordance with Section 3.04 of the Trust Sale
and Servicing Agreement.  The Owner Trustee further acknowledges and accepts the
conditions  and  limitations  with  respect  to  the  Servicer's  obligation  to
indemnify,  defend and hold the Owner  Trustee  harmless as set forth in Section
6.01(a)(iv) of the Trust Sale and Servicing Agreement.

                                   * * * * *

<PAGE>

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

                                                 BANKERS TRUST (DELAWARE),
                                                 as Owner Trustee

                                                 By: __________________________
                                                 Name:
                                                 Title:

                                                 CAPITAL AUTO RECEIVABLES, INC.

                                                 By:    R. L. STRAUB
                                                 _______________________________
                                                 Name:  R. L. Straub
                                                 Title: Manager - Securitization

<PAGE>

                                                                       EXHIBIT A

NUMBER R-
                                                                  $_____________

                                                                   CUSIP NO.____

                       SEE REVERSE FOR CERTAIN DEFINITIONS

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

          [IF REQUIRED BY SECTION 9.12: THIS  CERTIFICATE MAY NOT BE ACQUIRED BY
     OR FOR THE ACCOUNT OF (i) AN "EMPLOYEE BENEFIT PLAN" (AS DEFINED IN SECTION
     3(3) OF THE EMPLOYEE  RETIREMENT  INCOME  SECURITY ACT OF 1974, AS AMENDED,
     ("ERISA"))  THAT IS SUBJECT TO THE  PROVISIONS OF TITLE I OF ERISA,  (ii) A
     PLAN DESCRIBED IN SECTION  4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986,
     AS AMENDED, OR (iii) ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE PLAN ASSETS
     BY REASON OF A PLAN'S  INVESTMENT  IN THE ENTITY.  BY ACCEPTING AND HOLDING
     THIS CERTIFICATE, THE HOLDER HEREOF AND THE CERTIFICATE OWNER SHALL EACH BE
     DEEMED TO HAVE REPRESENTED AND WARRANTED THAT IT IS NOT A BENEFIT PLAN.]

<PAGE>

                   CAPITAL AUTO RECEIVABLES ASSET TRUST 2000-2

                         6.450% ASSET BACKED CERTIFICATE

               evidencing  a  fractional  undivided  interest  in the Trust,  as
               defined  below,  the property of which  includes a pool of retail
               instalment  sale contracts  secured by new  automobiles and light
               trucks and sold to the Trust by Capital Auto Receivables, Inc.

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

     THIS CERTIFIES THAT Capital Auto Receivables,  Inc. is the registered owner
of a nonassessable,  fully-paid,  fractional  undivided interest in Capital Auto
Receivables Asset Trust 2000-2 (the "Trust") formed by Capital Auto Receivables,
Inc., a Delaware corporation.

     The Trust was created pursuant to a Trust  Agreement,  dated as of December
14, 2000 (as amended and supplemented from time to time, the "Trust Agreement"),
between the Seller and Bankers  Trust  (Delaware),  as owner trustee (the "Owner
Trustee"),  a summary  of certain of the  pertinent  provisions  of which is set
forth below. To the extent not otherwise  defined herein,  the capitalized terms
used herein have the meanings assigned to them in the Trust Agreement.

     This Certificate is one of the duly authorized  Certificates  designated as
"6.450% Asset Backed  Certificates"  (the  "Certificates").  This Certificate is
issued under and is subject to the terms, provisions and conditions of the Trust
Agreement,  the terms of which are incorporated herein by reference and made a
part hereof,  to which Trust Agreement the holder of this Certificate by virtue
of the acceptance hereof assents and by which such holder is bound.

     Under the Trust  Agreement,  there shall be  distributed on the 15th day of
each month or, if such 15th day is not a Business  Day, the next  Business  Day,
commencing on January 16, 2001 (each, a "Distribution  Date"),  to the person in
whose name this Certificate is registered on the related Record Date (as defined
below), such Certificateholder's  fractional undivided interest in the amount of
interest  on  and  distributions  in  respect  of  Certificate   Balance  to  be
distributed to Certificateholders on such Distribution Date; provided,  however,
Certificateholders  shall not  receive  payments  in respect of the  Certificate
Balance  until all the  Notes  have been  paid (or  provided  for) in full.  The
"Record Date," with respect to any Distribution  Date, means the last day of the
preceding Monthly Period.

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

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

     It  is  the   intent   of  the   Seller,   the   Owner   Trustee   and  the
Certificateholders  that, for purposes of federal income, state and local income
and franchise  taxes,  Michigan  single business tax and any other taxes imposed
upon,  measured by or based upon gross or net income, the Trust shall be treated
as either  (A) a  division  of the  Seller,  or any  other  single  Person,  and
disregarded as a separate  entity,  if all  Certificates are owned solely by the
Seller or by such single Person,  or (B) a partnership if the  Certificates  are
owned by more than one  Person.  Except as  otherwise  required  by  appropriate
taxing authorities, the Seller and the other Certificateholders by acceptance of
a  Certificate  agree to  treat,  and to take no  action  inconsistent  with the
treatment  of, the  Certificates  for such tax  purposes as  interests in such a
disregarded entity or partnership as described in the previous sentence.

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

     Except as otherwise provided in the Trust Agreement,  distributions on this
Certificate  shall be made as  provided  in the  Trust  Agreement  by the  Owner
Trustee by wire transfer or check mailed to the  Certificateholder  of record in
the  Certificate   Register  without  the  presentation  or  surrender  of  this
Certificate  or the making of any notation  hereon,  except that with respect to
Certificates  registered  on the Record  Date in the name of the  nominee of the
Clearing Agency  (initially,  such nominee to be Cede & Co.),  payments shall be
made by wire transfer in immediately  available funds to the account  designated
by such  nominee.  Except  as  otherwise  provided  in the Trust  Agreement  and
notwithstanding  the above, the final  distribution on this Certificate shall be
made after due notice by the Owner Trustee of the pendency of such  distribution
and only upon  presentation  and  surrender  of this  Certificate  at the office
maintained  for such purpose by the Owner  Trustee in the Borough of  Manhattan,
the City of New York.
<PAGE>

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

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

     THIS  CERTIFICATE  SHALL BE  CONSTRUED IN  ACCORDANCE  WITH THE LAWS OF THE
STATE OF DELAWARE,  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.

<PAGE>

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

Dated: December 14, 2000
                                     CAPITAL AUTO RECEIVABLES ASSET
                                     TRUST 2000-2

                                     BANKERS  TRUST  (DELAWARE),
                                     not in its  individual  capacity but solely
                                     as Owner Trustee

                                          By:   CHARLES C. GREITER
                                          ____________________________
                                          Name: Charles C. Greiter
                                          Title:Attorney-in-Fact

                  OWNER TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

BANKERS TRUST (DELAWARE),                              BANKERS TRUST (DELAWARE),
not in its individual                                  not in its individual
capacity but solely          OR                        capacity but solely
as Owner Trustee                                       as Owner Trustee
                                                       by Bankers Trust Company,
                                                       as Authenticating Agent

   By:    CHARLES C. GREITER                           By:    CHARLES C. GREITER
   _________________________                           _________________________
   Name:  Charles C. Greiter                           Name:  Charles C. Greiter
   Title: Attorney-in-Fact                             Title: Attorney-in-Fact

<PAGE>

                             REVERSE OF CERTIFICATE

     The  Certificates do not represent an obligation of, or an interest in, the
Seller, the Servicer,  General Motors  Corporation,  the Indenture Trustee,  the
Owner  Trustee  or any  affiliates  of any of them  and no  recourse  may be had
against such parties or their  assets,  except as may be expressly  set forth or
contemplated  herein  or in the  Trust  Agreement  or the  Basic  Documents.  In
addition,  this  Certificate  is not  guaranteed by any  governmental  agency or
instrumentality  and is limited in right of payment to certain  collections  and
recoveries with respect to the Receivables  (and certain other amounts),  all as
more specifically set forth herein and in the Trust Agreement and the Trust Sale
and  Servicing  Agreement.  A copy of  each  of the  Trust  Sale  and  Servicing
Agreement and the Trust  Agreement may be examined  during normal business hours
at the  principal  office  of the  Seller,  and at such  other  places,  if any,
designated by the Seller, by any Certificateholder upon written request.

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

     As  provided  in the Trust  Agreement  and  subject to certain  limitations
therein set forth,  the  transfer of this  Certificate  is  registerable  in the
Certificate  Register upon surrender of this  Certificate  for  registration  of
transfer at the offices or agencies of the Certificate  Registrar  maintained by
the  Owner  Trustee  in the  City  of New  York,  accompanied  by (i) a  written
instrument  of  transfer  in form  satisfactory  to the  Owner  Trustee  and the
Certificate  Registrar  duly  executed  by the  Holder  hereof or such  Holder's
attorney  duly  authorized  in writing and (ii) if requested by the Seller,  the
Undertaking  Letter  required  by  Section  9.12  of the  Trust  Agreement,  and
thereupon one or more new  Certificates of authorized  denominations  evidencing
the same  aggregate  interest  in the Trust  will be  issued  to the  designated
transferee.   The  initial  Certificate  Registrar  appointed  under  the  Trust
Agreement is Bankers Trust Company, New York, New York.

     The Book-Entry  Certificates  are issuable only as registered  Certificates
without coupons in denominations  of $20,000 or integral  multiples of $1,000 in
excess  thereof;  provided,  however,  that one  Certificate  may be issued in a
denomination  that  includes  any  residual  amount.  As  provided  in the Trust
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable  for new  Certificates of authorized  denominations  evidencing the
same aggregate  denomination,  as requested by the Holder surrendering the same;
provided,  however,  that  no  Certificate  may  be  subdivided  such  that  the
denomination  of any  resulting  Certificate  is less than  $20,000.  No service
charge shall be made for any such registration of transfer or exchange,  but the
Owner  Trustee  or  the  Certificate  Registrar  may  require  payment  of a sum
sufficient  to  cover  any tax or  governmental  charge  payable  in  connection
therewith.
<PAGE>

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

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

<PAGE>

                                   ASSIGNMENT

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

PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE

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

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

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

Dated:                                            _____________________________*
                                                       Signature Guaranteed:

                                                  _____________________________*

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

<PAGE>

                                                                       EXHIBIT B

                             CERTIFICATE OF TRUST OF
                   CAPITAL AUTO RECEIVABLES ASSET TRUST 2000-2

     THIS  Certificate of Trust of Capital Auto  Receivables  Asset Trust 2000-2
(the "Trust") is being duly executed and filed by the  undersigned,  as trustee,
to form a  business  trust  under  the  Delaware  Business  Trust  Act (12  Del.
C.ss.3801 et seq.) (the "Act").

     1. Name.  The name of the  business  trust  formed  hereby is Capital  Auto
Receivables Asset Trust 2000-2.

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

     3. This Certificate of Trust shall be effective on December 14, 2000.

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

                                             BANKERS TRUST (DELAWARE),  not
                                             in its individual capacity but
                                             solely as Owner Trustee

                                             By: _______________________________
                                             Name:
                                             Title:

<PAGE>

                                                                       EXHIBIT C
                               UNDERTAKING LETTER

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

Bankers Trust (Delaware),
as Owner Trustee of Capital Auto Receivables Asset Trust 2000-2
E.A. Delle Donne Corporate Center
Montgomery Building
1011 Centre Road, Suite 200
Wilmington, DE 19805-1266

Ladies and Gentlemen:

     In connection  with our purchase of record or  beneficial  ownership of the
6.450%  Asset  Backed  Certificate  (the  "Certificate")  of  the  Capital  Auto
Receivables  Asset Trust  2000-2,  the  undersigned  purchaser,  record owner or
beneficial  owner  hereby  acknowledges,   represents  and  warrants  that  such
purchaser, record owner or beneficial owner:

     (1) is not, and has not acquired the Certificate by, or for the benefit of,
(i) an  employee  benefit  plan (as  defined  in  Section  3(3) of the  Employee
Retirement Income Security Act of 1974, as amended ("ERISA")) that is subject to
the provisions of Title I of ERISA, (ii) a plan described in Section  4975(e)(1)
of the  Internal  Revenue  Code of 1986,  as amended,  or (iii) any entity whose
underlying  assets  include plan assets by reason of a plan's  investment in the
entity  whose  underlying  assets  include  plan  assets  by  reason of a plan's
investment in the entity; and

     (2)  acknowledges  that you and  others  will rely on our  acknowledgments,
representations and warranties,  and agrees to notify you promptly in writing if
any of our  representations  or  warranties  herein  cease  to be  accurate  and
complete.

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

                                     By:___________________________

                                     Name:
                                     Title:
                                     Date: _________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00018-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00018-of-00352.parquet"}]]