Document:

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                                                                     EXHIBIT 4.1

                                 TRUST AGREEMENT

                            Dated as of June 1, 2000

                                     between

                        ARCADIA RECEIVABLES FINANCE CORP.

                                       and

                            WILMINGTON TRUST COMPANY
                                  Owner Trustee

                 ASSOCIATES AUTOMOBILE RECEIVABLES TRUST 2000-1

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                                TABLE OF CONTENTS

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<S>                 <C>                                                                                        <C>
ARTICLE I           DEFINITIONS...................................................................................1
         SECTION 1.1.          Definitions........................................................................1
         SECTION 1.2.          Usage of Terms.....................................................................3
         SECTION 1.3.          Section References.................................................................4
         SECTION 1.4.          Action by or Consent of Certificateholders.........................................4

ARTICLE II          CREATION OF TRUST.............................................................................4
         SECTION 2.1.          Creation of Trust..................................................................4
         SECTION 2.2.          Office.............................................................................4
         SECTION 2.3.          Purposes and Powers................................................................4
         SECTION 2.4.          Appointment of Owner Trustee.......................................................5
         SECTION 2.5.          Initial Capital Contribution of Trust Estate.......................................5
         SECTION 2.6.          Declaration of Trust...............................................................5
         SECTION 2.7.          Liability of the Certificateholders................................................6
         SECTION 2.8.          Title to Trust Property............................................................6
         SECTION 2.9.          Situs of Trust.....................................................................6
         SECTION 2.10.         Representations and Warranties of the Depositor....................................6
         SECTION 2.11.         Federal Income Tax Treatment.......................................................7
         SECTION 2.12.         Covenants of the Certificateholders................................................8

ARTICLE III         THE CERTIFICATES..............................................................................9
         SECTION 3.1.          Initial Ownership..................................................................9
         SECTION 3.2.          The Certificates...................................................................9
         SECTION 3.3.          Authentication of Certificates.....................................................9
         SECTION 3.4.          Registration of Transfer and Exchange of Certificates.............................10
         SECTION 3.5.          Mutilated, Destroyed, Lost or Stolen Certificates.................................12
         SECTION 3.6.          Persons Deemed Owners.............................................................12
         SECTION 3.7.          Access to List of Certificateholders' Names and Addresses.........................12
         SECTION 3.8.          Maintenance of Office or Agency...................................................13
         SECTION 3.9.          Appointment of Paying Agent.......................................................13

ARTICLE IV          ACTIONS BY OWNER TRUSTEE.....................................................................13
         SECTION 4.1.          Restriction on Power of Certificateholders........................................13
         SECTION 4.2.          Prior Notice to Certificateholders with Respect to Certain Matters................13
         SECTION 4.3.          Action by Certificateholders with Respect to Bankruptcy...........................14
         SECTION 4.4.          Restrictions on Certificateholders' Power.........................................14

ARTICLE V           APPLICATION OF TRUST FUNDS; CERTAIN DUTIES...................................................15
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<S>                  <C>                                                                                         <C>
         SECTION 5.1.          Trust Accounts....................................................................15
         SECTION 5.2.          Application of Funds in Certificate Distribution Account..........................16
         SECTION 5.3.          Method of Payment.................................................................17
         SECTION 5.4.          No Segregation of Monies; No Interest.............................................17
         SECTION 5.5.          Accounting; Reports; Tax Returns..................................................17

ARTICLE VI          AUTHORITY AND DUTIES OF OWNER TRUSTEE........................................................18
         SECTION 6.1.          General Authority.................................................................18
         SECTION 6.2.          General Duties....................................................................18
         SECTION 6.3.          Action upon Instruction...........................................................19
         SECTION 6.4.          No Duties Except as Specified in this Agreement or
                               in Instructions...................................................................20
         SECTION 6.5.          No Action Except under Specified Documents or Instructions........................21
         SECTION 6.6.          Restrictions......................................................................21
         SECTION 6.7.          Administration Agreement..........................................................21

ARTICLE VII         CONCERNING THE OWNER TRUSTEE.................................................................22
         SECTION 7.1.          Acceptance of Trustee and Duties..................................................22
         SECTION 7.2.          Furnishing of Documents...........................................................23
         SECTION 7.3.          Representations and Warranties....................................................23
         SECTION 7.4.          Reliance; Advice of Counsel.......................................................24
         SECTION 7.5.          Not Acting in Individual Capacity.................................................24
         SECTION 7.6.          Owner Trustee Not Liable for Certificates, Notes or Receivables...................24
         SECTION 7.7.          Owner Trustee May Own Certificates and Notes......................................25

ARTICLE VIII        COMPENSATION OF OWNER TRUSTEE................................................................25
         SECTION 8.1.          Owner Trustee's Fees and Expenses.................................................25
         SECTION 8.2.          Indemnification...................................................................25
         SECTION 8.3.          Non-recourse Obligations..........................................................26

ARTICLE IX          TERMINATION..................................................................................26
         SECTION 9.1.          Termination of the Trust..........................................................26

ARTICLE X           SUCCESSOR OWNER TRUSTEES AND ADDITIONAL
                    OWNER TRUSTEES...............................................................................28
         SECTION 10.1.         Eligibility Requirements for Owner Trustee........................................28
         SECTION 10.2.         Resignation or Removal of Owner Trustee...........................................28
         SECTION 10.3.         Successor Owner Trustee...........................................................29
         SECTION 10.4.         Merger or Consolidation of Owner Trustee..........................................29
         SECTION 10.5.         Appointment of Co-Trustee or Separate Trustee.....................................29

ARTICLE XI          MISCELLANEOUS PROVISIONS.....................................................................31
         SECTION 11.1.         Amendment.........................................................................31
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<S>                  <C>                                                                                         <C>
         SECTION 11.2.         No Recourse.......................................................................32
         SECTION 11.3.         No Petition.......................................................................32
         SECTION 11.4.         Governing Law.....................................................................32
         SECTION 11.5.         Severability of Provisions........................................................32
         SECTION 11.6.         Certificates Nonassessable and Fully Paid.........................................32
         SECTION 11.7.         Third-Party Beneficiaries.........................................................33
         SECTION 11.8.         Counterparts......................................................................33
         SECTION 11.9.         Notices...........................................................................33

Exhibit A     --    Form of Certificate of Trust........................................................        A-1

Exhibit B     --    Form of Certificate.................................................................        B-1

Exhibit C     --    Form of Representation Letter.......................................................        C-1
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<PAGE>   5

                  THIS TRUST AGREEMENT, dated as of June 1, 2000, is made
between Arcadia Receivables Finance Corp., a Delaware corporation (the
"Seller"), and Wilmington Trust Company, a Delaware banking corporation, as
Owner Trustee (in such capacity, the "Owner Trustee").

                  In consideration of the mutual agreements herein contained,
and of other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the parties agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

                  SECTION 1.1. Definitions. All terms defined in the Sale and
Servicing Agreement (defined below) shall have the same meaning in this
Agreement. Whenever capitalized and used in this Agreement, the following words
and phrases, unless otherwise specified, shall have the following meanings:

                  Administration Agreement: The Administration Agreement, dated
as of June 22, 2000, between the Administrator and the Trust, as the same may be
amended and supplemented from time to time.

                  Administrator: Wilmington Trust Company, a Delaware banking
corporation, or any successor Administrator under the Administration Agreement.

                  AFL: Arcadia Financial Ltd., a Minnesota corporation, and its
successors in interest.

                  Agreement or "this Agreement": This Trust Agreement, all
amendments and supplements hereto and all exhibits and schedules to any of the
foregoing.

                  Authentication Agent: Wilmington Trust Company, or its
successor in interest, and any successor authentication agent appointed as
provided in this Agreement.

                  Business Trust Statute: Chapter 38 of Title 12 of the Delaware
Code, 12 Del. Code Section 3801 et seq., as the same may be amended from time to
time.

                  Certificate: A certificate executed by the Owner Trustee on
behalf of the Trust evidencing a fractional undivided interest in the Trust,
substantially in the form attached hereto as Exhibit B.

                  Certificate Distribution Account: The account designated as
the Certificate Distribution Account in, and which is established and maintained
pursuant to, Section 5.1.

<PAGE>   6

                  Certificate Majority: Holders of Certificates representing
more than 50% of the interests of the Certificateholders as a whole.

                  Certificate of Trust: The Certificate of Trust in the form of
Exhibit A hereto filed for the Trust pursuant to Section 3810(a) of the Business
Trust Statute.

                  Certificate Register and Certificate Registrar: The register
maintained and the registrar appointed pursuant to Section 3.4.

                  Certificateholder or Holder: A Person in whose name a
Certificate is registered in the Certificate Register.

                  Code: The Internal Revenue Code of 1986, and applicable
federal regulations promulgated thereunder, as the same may be amended from time
to time.

                  Corporate Trust Office: The principal office of the Owner
Trustee at which at any particular time its corporate trust business shall be
administered, which office at the Closing Date is located at Rodney Square
North, 1100 North Market Street, Wilmington, Delaware 19890, Attention:
Corporate Trust Administration; the telecopy number for such office on the date
of the execution of this Agreement is (302) 651-8882.

                  Depositor: The Seller in its capacity as depositor hereunder.

                  Dissolution Event: With respect to the Depositor, the
termination or dissolution of such Person, or the occurrence of an Insolvency
Event with respect to such Person.

                  Eligible Investments: The meaning assigned to such term in the
Sale and Servicing Agreement.

                  ERISA: The meaning assigned to such term in Section 3.4(e).

                  Expenses: The meaning assigned to such term in Section 8.2.

                  Indemnified Parties: The meaning assigned to such term in
Section 8.2.

                  Owner or Certificate Owner: With respect to any Certificate,
the Certificateholder.

                  Owner Trustee: Wilmington Trust Company, or its successor in
interest, acting not individually but solely as trustee, and any successor
trustee appointed as provided in this Agreement.

                  Paying Agent: Any paying agent or co-paying agent appointed
pursuant to Section 3.9, which initially shall be Wilmington Trust Company.

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                  Record Date: With respect to any Distribution Date, the close
of business on the last Business Day immediately preceding such Distribution
Date.

                  Related Documents: The Sale and Servicing Agreement, the
Indenture, the Certificates, the Notes, the Purchase Agreement, the Custodian
Agreement, the Administration Agreement, the Lockbox Agreement, the Depository
Agreement, the letter agreement between Associates Corporation of North America
and the underwriters of the Notes and the Underwriting Agreement among AFL, the
Seller and the underwriters of the Notes. The Related Documents executed by any
party are referred to herein as "such party's Related Documents," "its Related
Documents" or by a similar expression.

                  Sale and Servicing Agreement: The Sale and Servicing
Agreement, dated as of June 1, 2000, among the Trust, the Seller and AFL, in its
individual capacity and as Servicer, as the same may be amended and supplemented
from time to time.

                  Secretary of State: The Secretary of State of the State of
Delaware.

                  Seller: Arcadia Receivables Finance Corp., a Delaware
corporation, or its successor in interest.

                  Servicer's Certificate: The Monthly Report delivered by the
Servicer to the Trust pursuant to Section 3.9 of the Sale and Servicing
Agreement.

                  Trust: The trust created by this Agreement, the estate of
which consists of the Trust Property.

                  Trust Accounts: The Collection Account, the Reserve Account,
the Certificate Distribution Account, the Note Interest Distribution Account and
the Principal Distribution Account.

                  Trust Property: The property and proceeds of every description
conveyed pursuant to Section 2.5 hereof and Section 2.1 of the Sale and
Servicing Agreement, together with the Trust Accounts (including all Eligible
Investments therein and all proceeds therefrom).

                  SECTION 1.2. Usage of Terms. With respect to all terms used in
this Agreement, the singular includes the plural and the plural the singular;
words importing any gender include the other genders; references to "writing"
include printing, typing, lithography, and other means of reproducing words in a
visible form; references to agreements and other contractual instruments include
all subsequent amendments thereto or changes therein entered into in accordance
with their respective terms and not prohibited by this Agreement; references to
Persons include their permitted successors and assigns; and the terms "include"
or "including" mean "include without limitation" or "including without
limitation." To the extent that definitions are contained in this Agreement, or
in any such certificate or other document, such definitions shall control.

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                  SECTION 1.3. Section References. All references to Articles,
Sections, paragraphs, subsections, exhibits and schedules shall be to such
portions of this Agreement unless otherwise specified.

                  SECTION 1.4. Action by or Consent of Certificateholders.
Except as expressly provided herein, any action that may be taken by the
Certificateholders under this Agreement may be taken by a Certificate Majority.
Except as expressly provided herein, any written notice or consent of the
Certificateholders delivered pursuant to this Agreement shall be effective if
signed by Holders of the Certificates evidencing not less than a Certificate
Majority at the time of the delivery of such notice.

                                   ARTICLE II

                                CREATION OF TRUST

                  SECTION 2.1. Creation of Trust. There is hereby formed a trust
to be known as "Associates Automobile Receivables Trust 2000-1," in which name
the Trust may conduct business, make and execute contracts and other instruments
and sue and be sued.

                  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 Depositor.

                  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 issue the Notes pursuant to the Indenture and
         the Certificates pursuant to this Agreement and to sell the Notes;

                           (ii) with the proceeds of the sale of the Notes, to
         fund the Reserve Account, to pay the organizational, start-up and
         transactional expenses of the Trust and to pay the balance to the
         Seller pursuant to the Sale and Servicing Agreement and this Agreement;

                           (iii) to assign, grant, transfer, pledge, mortgage
         and convey the Trust Property to the Indenture Trustee on behalf of the
         Noteholders and to hold, manage and distribute to the Certificateholder
         pursuant to the terms of the Sale and Servicing Agreement any portion
         of the Trust Property released from the Lien of, and remitted to the
         Trust pursuant to, the Indenture;

                           (iv) to enter into and perform its obligations under
         the Related Documents to which it is to be a party;

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                           (v) to engage in those activities, including entering
         into agreements, that are necessary, suitable or convenient to
         accomplish the foregoing or are incidental thereto or connected
         therewith; and

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

The Trust is hereby authorized to engage in the foregoing activities. The Trust
shall not engage in any activity other than in connection with the foregoing or
other than as required or expressly authorized by the terms of this Agreement or
the Related Documents.

                  SECTION 2.4. Appointment of Owner Trustee. The Depositor
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, and the
Owner Trustee hereby accepts such appointment.

                  SECTION 2.5. Initial Capital Contribution of Trust Estate. The
Depositor hereby sells, assigns, transfers, conveys and sets over to the Owner
Trustee, as of the date hereof, the sum of $10. The Owner Trustee hereby
acknowledges receipt in trust from the Depositor, as of the date hereof, of the
foregoing contribution, which shall constitute the initial Trust Property and
shall be deposited in the Certificate Distribution Account. The Depositor shall
pay organizational expenses of the Trust as they may arise or shall, upon the
request of the Owner Trustee, promptly reimburse the Owner Trustee for any such
expenses paid by the Owner Trustee.

                  SECTION 2.6. Declaration of Trust. The Owner Trustee hereby
declares that it will hold the Trust Property in trust upon and subject to the
conditions set forth herein, subject to the interests and rights in the Trust
Property granted to other Persons by the Related Documents. It is the intention
and agreement of the parties hereto that the Trust constitutes a business trust
under the Business Trust Statute and that this Agreement constitutes the
governing instrument of such business trust. It is the intention and agreement
of the parties hereto that, solely for income and franchise tax purposes, the
Trust shall be treated as a partnership. None of the parties hereto shall make
the election provided in Treasury Regulation Section 301.7701-3(c) to have the
Trust classified as an association taxable as a corporation. The parties agree
that, unless otherwise required by appropriate tax authorities, the Servicer, on
behalf of the Trust, will file or cause to be filed annual or other necessary
returns, reports and other forms consistent with the characterization of the
Trust as a partnership for such tax purposes. On the date hereof, the Owner
Trustee shall file the Certificate of Trust required by Section 3810(a) of the
Business Trust Statute in the Office of the Secretary of State. 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.

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                  SECTION 2.7. Liability of the Certificateholders. Except as
otherwise provided herein, no Certificateholders shall have any personal
liability or obligation of the Trust or by reason of any action taken by the
parties to this Agreement pursuant to any provisions of this Agreement or any
Related Document.

                  SECTION 2.8. Title to Trust Property.

                  (a) Legal title to all the Trust Property 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 Trust Property 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.

                  (b) The Certificateholders shall not have legal title to any
part of the Trust Property. The Certificateholders shall be entitled to receive
distributions with respect to its undivided beneficial ownership interest in the
Trust only in accordance with Articles V and IX. No transfer, by operation of
law or otherwise, of any right, title or interest by any Certificateholder of
its beneficial ownership interest in the Trust Property 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 Trust
Property.

                  SECTION 2.9. Situs of Trust. The Trust will be located and
administered in the State of Delaware. All bank accounts maintained by the Owner
Trustee on behalf of the Trust shall be located in the State of Delaware. 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, the
Servicer or any agent of the Trust from having employees within or without the
State of Delaware. Payments will be received by the Trust only in Delaware, and
payments will be made by the Trust only from Delaware. The only office of the
Trust will be at the Corporate Trust Office in Delaware.

                  SECTION 2.10. Representations and Warranties of the Depositor.
By execution of this Agreement, the Depositor makes the following
representations and warranties with respect to itself on which the Owner Trustee
relies in accepting the Trust Property in trust and issuing the Certificates.

                  (a) Organization and Good Standing. It 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 currently owned and as such business is
currently conducted and is proposed to be conducted pursuant to this Agreement
and the Related Documents.

                  (b) Due Qualification. It 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 its
property, the conduct of its business and the performance of its obligations
under this Agreement and the Related Documents requires such qualification.

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                  (c) Power and Authority. It has the power and authority to
execute and deliver this Agreement and its Related Documents and to perform its
obligations pursuant thereto; and the execution, delivery and performance of
this Agreement and its Related Documents have been duly authorized by all
necessary corporate action.

                  (d) No Consent Required. No consent, license, approval or
authorization or registration or declaration with, any Person or with any
governmental authority, bureau or agency is required in connection with the
execution, delivery or performance of this Agreement and the Related Documents,
except for such as have been obtained, effected or made.

                  (e) No Violation. The consummation of the transactions
contemplated by this Agreement and its Related Documents and the fulfillment of
its obligations under this Agreement and its Related Documents shall not
conflict with, result in any breach of any of the terms and provisions of or
constitute (with or without notice, lapse of time or both) a default under, its
certificate of incorporation or by-laws, or any indenture, agreement, mortgage,
deed of trust or other instrument to which it is a party or by which it is
bound, or result in the creation or imposition of any Lien upon any of its
properties pursuant to the terms of any such indenture, agreement, mortgage,
deed of trust or other instrument, or violate any law, order, rule or regulation
applicable to it of any court or of any federal or state regulatory body,
administrative agency or other governmental instrumentality having jurisdiction
over it or any of its properties.

                  (f) No Proceedings. There are no proceedings or investigations
pending or, to its knowledge, threatened against it before any court, regulatory
body, administrative agency or other tribunal or governmental instrumentality
having jurisdiction over it or its properties, (A) asserting the invalidity of
this Agreement or any of the Related Documents, (B) seeking to prevent the
issuance of the Certificates or the Notes or the consummation of any of the
transactions contemplated by this Agreement or any of the Related Documents, (C)
seeking any determination or ruling that might materially and adversely affect
its performance of its obligations under, or the validity or enforceability of,
this Agreement or any of the Related Documents, or (D) seeking to adversely
affect the federal income tax or other federal, state or local tax attributes of
the Certificates.

                  SECTION 2.11. Federal Income Tax Treatment. The Seller and the
Owner Trustee agree to treat, and to take no action inconsistent with the
treatment of, the Notes as indebtedness for purposes of federal, state, local
and foreign income or franchise taxes and any other tax imposed on or measured
by income. Furthermore, subject to Section 4.1, the Seller and the Owner Trustee
shall treat the Trust as a security device only, and shall not file tax returns
or obtain an employer identification number on behalf of the Trust.

                  In the event that any class of Notes is deemed to represent an
equity interest in the Trust, the Trust shall be treated for federal income tax
purposes as a partnership among the Holders of such Notes and the Seller. In the
event such a partnership if deemed to exist, the net income of the Trust for any
month as determined for federal income tax purposes (and each item of income,
gain, loss, deduction and credit, if any, entering into the computation thereof)
shall be allocated:

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                           (a) among the Certificateholders in equal
         proportions; and

                           (b) in the event the Noteholders of any class are
         deemed to be partners of the partnership created hereby, among such
         Noteholders as of the first Determination

         Date following the end of such month in proportion to their ownership
         of the principal amount of Notes of such class on such date, in an
         amount of such income up to the sum of the monthly Interest
         Distributable Amount for such class for the related Distribution Date,
         and the balance thereof shall be allocated to the Certificateholders in
         accordance with clause (a) above. If the net income of the Trust for
         any succeeding month is insufficient for the allocations to Noteholders
         described in this clause (b), if applicable, net income shall first be
         allocated to such Noteholders to make up such shortfall before being
         allocated to Certificateholders as provided above.

                           In the event the Noteholders of any class are deemed
         to be partners of the partnership created hereby, net losses of the
         Trust, if any, for any month as determined for federal income tax
         purposes (and each item of income, gain, loss and deduction entering
         into the computation thereof) shall be allocated to the
         Certificateholders to the extent the Certificateholders are reasonably
         expected to bear the economic burden of such net losses, then net
         losses shall be allocated among the Noteholders as of the first
         Determination Date following the end of such month in proportion to
         their ownership of principal amount of Notes of such class on such
         Determination Date. The Certificateholders are authorized to modify the
         allocations in this paragraph if necessary or appropriate, in their
         sole discretion, for the allocations to fairly reflect the economic
         income, gain or loss to the Certificateholders or the Noteholders, or
         to comply with the provisions of the Code and the accompanying Treasury
         Regulations.

                  SECTION 2.12. Covenants of the Certificateholders. Each
Certificateholder by becoming the owner of the Certificates agrees:

                           (a) to be bound by the terms and conditions of the
         Certificates of which such Certificateholder is the owner and of this
         Agreement, including any supplements or amendments hereto and to
         perform the obligations of a Certificateholder as set forth therein or
         herein, in all respects as if it were a signatory hereto. This
         undertaking is made for the benefit of the Trust, the Owner Trustee,
         and any other future Certificateholders;

                           (b) to hereby appoint the Depositor as such Owner's
         agent and attorney- in-fact to sign any federal income tax information
         return filed on behalf of the Trust and agree that, if requested by the
         Trust, it will sign such federal income tax information return in its
         capacity as holder of an interest in the Trust. Each Owner also hereby
         agrees that in its tax returns it will not take any position
         inconsistent with those taken in any tax returns filed by the Trust;

                                      -8-
<PAGE>   13

                           (c) if such Owner is other than an individual or
         other entity holding its Certificate through a broker who reports
         securities sales on Form 1099-B, to notify the Owner Trustee of any
         transfer by it of a Certificate in a taxable sale or exchange, within
         30 days of the date of the transfer; and

                           (d) until the completion of the events specified in
         Section 9.1(e), not to, for any reason, institute proceedings for the
         Trust to be adjudicated a bankrupt or insolvent, or consent to the
         institution of bankruptcy or insolvency proceedings against the Trust,
         or file a petition seeking or consenting to reorganization or relief
         under any applicable federal or state law relating to bankruptcy, or
         consent to the appointment of a receiver, liquidator, assignee,
         trustee, sequestrator (or other similar official) of the Trust or a
         substantial part of its property, or cause or permit the Trust to make
         any assignment for the benefit of its creditors, or admit in writing
         its inability to pay its debts generally as they become due, or declare
         or effect a moratorium on its debt or take any action in furtherance of
         any such action.

                                   ARTICLE III

                                THE CERTIFICATES

                  SECTION 3.1. Initial Ownership. Upon the formation of the
Trust by the contribution by the Depositor pursuant to Section 2.5 and until the
issuance of the Certificates, the Depositor shall be the sole beneficiary of the
Trust.

                  SECTION 3.2. The Certificates. The Certificates shall be
evidenced by a single certificate issued on the Closing Date to Arcadia
Receivables Finance Corp. VI. The Certificates shall be executed on behalf of
the Trust by the Owner Trustee by manual or facsimile signature of any
authorized signatory of the Owner Trustee having such authority under the Owner
Trustee's seal imprinted or otherwise affixed thereon and attested on behalf of
the Owner Trustee by the manual or facsimile signature of any authorized
signatory of the Owner Trustee. Certificates bearing the manual or facsimile
signatures of individuals who were, at the time when such signatures were
affixed, authorized to sign on behalf of the Owner Trustee shall be validly
issued and entitled to the benefits of this Agreement, notwithstanding that such
individuals or any of them have ceased to be so authorized prior to the
authentication and delivery of such Certificates.

                  SECTION 3.3. Authentication of Certificates. Simultaneously
with the sale, assignment and transfer to the Trust of the Receivables and the
delivery to the Owner Trustee of the Receivable Files and the other Trust
Property pursuant to the Sale and Servicing Agreement, the Owner Trustee shall
cause a single Certificate to be executed on behalf of the Trust, authenticated
and delivered to or upon the order of Arcadia Receivables Finance Corp. VI. 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 B,
executed by the Owner Trustee or the Authentication Agent, by manual or
facsimile signature; such authentication shall constitute conclusive evidence
that such Certificate shall have been duly authenticated and

                                      -9-
<PAGE>   14

delivered hereunder. Wilmington Trust Company is hereby initially appointed as
Authentication Agent. All Certificates shall be dated the date of their
authentication.

                  SECTION 3.4. Registration of Transfer and Exchange of
Certificates.

                           (a) The Certificate Registrar shall maintain, or
         cause to be maintained, 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 in this Agreement.
         The Owner Trustee is hereby appointed initial Certificate Registrar for
         the purpose of registering Certificates and transfers and exchanges of
         Certificates as provided in this Agreement.

                           (b) Upon surrender for registration of transfer of
         any Certificate at the office or agency maintained pursuant to Section
         3.8, and compliance with subsection (c), the Owner Trustee shall
         execute, authenticate and deliver (or shall cause the Authentication
         Agent to authenticate and deliver), in the name of the designated
         transferee or transferees, one or more new Certificates, dated the date
         of authentication by the Owner Trustee or any authenticating agent. At
         the option of a Holder, Certificates may be exchanged for other
         Certificates of the same class in authorized denominations of a like
         aggregate amount upon surrender of the Certificates to be exchanged at
         the office or agency maintained pursuant to Section 3.8.

                           (c) (1) No transfer of a Certificate shall be made by
         Arcadia Receivables Finance Corp. VI or any other Person unless such
         transfer is exempt from the registration requirements of the Securities
         Act of 1933, as amended (the "Act"), and any applicable state
         securities laws or is made in accordance with the Act and laws. In the
         event that any such transfer is to be made, (A) the Depositor may
         require a written Opinion of Counsel acceptable to and in form and
         substance satisfactory to the Depositor that such transfer may be made
         pursuant to an exemption, describing the applicable exemption and the
         basis therefor, from the Act and laws or is being made pursuant to the
         Act and laws, which Opinion of Counsel shall not be an expense of the
         Owner Trustee or the Depositor, and (B) the Owner Trustee shall require
         the transferee to execute an investment letter substantially in the
         form of Exhibit C attached hereto, which investment letter shall not be
         an expense of the Owner Trustee or the Depositor. Any Certificateholder
         desiring to effect such transfer shall, and does hereby agree to,
         indemnify the Owner Trustee, the Depositor and the Certificate
         Registrar against any liability that may result if the transfer is not
         so exempt or is not made in accordance with such federal and state
         laws. In addition, no transfer of a Certificate shall be made by
         Arcadia Receivables Finance Corp. VI or any other person to an
         Affiliate of the Servicer or the Seller without (i) the written Opinion
         of Counsel acceptable to and in form and substance satisfactory to the
         Depositor that in the event the Servicer or the Seller became a debtor
         under the United States Bankruptcy Code, a court exercising reasonable
         judgment under then existing statutes and precedents would not order
         that the assets of such Affiliate be consolidated with those of the

                                      -10-
<PAGE>   15

         Servicer or the Seller, which opinion shall not be an expense of the
         Owner Trustee or the Depositor, and (ii) written notification from each
         Rating Agency to the effect that such transfer will not cause such
         Rating Agency to downgrade its then-current ratings, if any, of any of
         the Notes below the lower of the then-current rating or the rating
         assigned to such Notes as of the Closing Date by such Rating Agency.

                                    (2) Any transfer, sale or other disposition
         not in compliance with the provisions of this Section 3.4(c) shall be
         deemed to be void and of no legal force or effect whatsoever and such
         transferee shall be deemed to not be the Certificateholder for any
         purpose hereunder, including, but not limited to, the receipt of
         distributions on such Certificate, and shall be deemed to have no
         interest whatsoever in such Certificate.

                           (d) No service charge shall be made for any
         registration of transfer or exchange of Certificates, but the Owner
         Trustee or the Certificate Registrar may require payment of a sum
         sufficient to cover any expense, tax or governmental charge that may be
         imposed in connection with any transfer or exchange of Certificates.

                           (e) The Certificates may not be acquired by or for
         the account of (i) a pension, profit sharing or other employee benefit
         plan, or an individual retirement account or Keogh plan, subject to
         Title I of the Employee Retirement Income Security Act of 1974, as
         amended ("ERISA") or Section 4975 of the Internal Revenue Code of 1986,
         as amended (a "Benefit Plan"), or (ii) any entity whose underlying
         assets include "plan assets" (within the meaning of Department of Labor
         ("DOL") Regulation Section 2510.3-101, 29 C.F.R. Section 2510.3-101 or
         otherwise under ERISA) by reason of a Benefit Plan's investment in the
         entity, including, without limitation, an insurance company acting on
         behalf of its general account.

                           (f) Notwithstanding anything contained herein to the
         contrary, the Owner Trustee and the Certificate Registrar shall not be
         responsible for ascertaining whether any transfer complies with the
         registration provisions or exemptions from the Act, the Securities and
         Exchange Act of 1934, as amended, or applicable state securities law or
         the Investment Company Act of 1940, as amended; provided, however, that
         if a certificate is specifically required to be delivered to the Owner
         Trustee by a purchaser or transferee of a Certificate, the Owner
         Trustee shall be under a duty to examine the same to determine whether
         it conforms to the requirements of this Agreement and shall promptly
         notify the party delivering the same if such certificate does not so
         conform.

                           (g) Notwithstanding the preceding provisions of this
         Section, the Owner Trustee shall not be required to make, and the
         Certificate Registrar shall not be required to register, transfers or
         exchanges of Certificates for a period of 15 days preceding the due
         date for any payment with respect to the Certificates.

                                      -11-
<PAGE>   16

                  SECTION 3.5. Mutilated, Destroyed, Lost or Stolen
Certificates.

                  If (a) 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 (b) there
is delivered to the Certificate Registrar and the Owner Trustee such security or
indemnity as may be required by them to save 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 bona fide purchaser, the Owner Trustee on
behalf of the Trust shall execute, authenticate and deliver (or the
Authentication Agent shall authenticate and deliver), in exchange for or in lieu
of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate
of like tenor. In connection with the issuance of any new Certificate under this
Section 3.5, the Owner Trustee may require the payment of a sum sufficient to
cover any expense, tax or other governmental charge that may be imposed in
relation thereto and any other expenses (including the fees and expenses of the
Owner Trustee and the Certificate Registrar) connected therewith. Any duplicate
Certificate issued pursuant to this Section 3.5 shall constitute conclusive
evidence of beneficial ownership in the assets of the Trust, as if originally
issued, whether or not the lost, stolen or destroyed Certificate shall be found
at any time.

                  SECTION 3.6. Persons Deemed Owners.

                  Prior to due presentation of a Certificate for registration of
transfer, the Owner Trustee, the Certificate Registrar and any agent of the
Owner Trustee or the Certificate Registrar may treat the person in whose name
any Certificate is registered as the owner of such Certificate for the purpose
of receiving distributions pursuant to Section 5.2 and for all other purposes
whatsoever, and neither the Owner Trustee, the Certificate Registrar nor any
agent of the Owner Trustee or 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, within 15 days after receipt by the Owner Trustee of a written
request therefor, a list, in such form as the Servicer may reasonably require,
of the names and addresses of the Certificateholders as of the most recent
Record Date for payment of distributions to Certificateholders. If three or more
Certificateholders of a Class, or one or more Certificateholders holding not
less than 25% of the interests of the Certificateholders as a whole (hereinafter
referred to as "Applicants"), apply in writing to the Owner Trustee, and such
application states that the Applicants desire to communicate with other
Certificateholders with respect to their rights under this Agreement or under
the Certificates and is accompanied by a copy of the communication that such
Applicants propose to transmit, then the Owner Trustee shall, within five
Business Days after the receipt of such application, afford such Applicants
access, during normal business hours, to the current list of Certificateholders.
Every Certificateholder, by receiving and holding a Certificate, agrees that
none of the Servicer or the Owner Trustee, nor any agent thereof, shall be held
accountable by reason of the disclosure of any such information as to the names
and addresses of the Certificateholders under this Agreement, regardless of the
source from which such information was derived.

                                      -12-
<PAGE>   17

                  SECTION 3.8. Maintenance of Office or Agency. The Owner
Trustee shall maintain in Wilmington, Delaware, 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 Related Documents may be served. The Owner
Trustee initially designates Wilmington Trust Company, Rodney Square North, 1100
North Market Street, Wilmington, Delaware 19890 as its principal corporate trust
office for such purposes. The Owner Trustee shall give prompt written notice to
the Depositor and to the Certificateholder of any change in the location of the
Owner Trustee of any such office or agency.

                  SECTION 3.9. Appointment of Paying Agent. 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. 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 Trust hereby
appoints Wilmington Trust Company as Paying Agent. Wilmington Trust Company
shall be permitted to resign as Paying Agent upon 30 days' written notice to the
Owner Trustee. In the event that Wilmington 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 will 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 7.1, 7.3, 7.4 and 8.1 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 appointed hereunder. Any reference in this Agreement to the
Paying Agent shall include any co-paying agent unless the context requires
otherwise.

                                   ARTICLE IV

                            ACTIONS BY OWNER TRUSTEE

                  SECTION 4.1. Restriction on Power of Certificateholders. The
Certificateholders shall not have any right to vote or in any manner otherwise
control the operation and management of the Trust except as expressly provided
in this Agreement.

                  SECTION 4.2. Prior Notice to Certificateholders with Respect
to Certain Matters. The Owner Trustee shall not take any of the following
actions, unless at least 30 days before the taking

                                      -13-
<PAGE>   18

of such action, the Owner Trustee shall have notified the Certificateholders in
writing of the proposed action and the Certificateholders shall not have
notified the Owner Trustee in writing prior to the 30th day after such notice is
given that such Certificateholders has withheld consent or provided alternative
direction:

                           (a) the initiation of any material claim or lawsuit
         by the Trust except claims or lawsuits brought in connection with the
         collection of the Receivables and the compromise of any material
         action, claim or lawsuit brought by or against the Trust (except with
         respect to the aforementioned claims or lawsuits for collection of the
         Receivables);

                           (b) the election by the Trust to file an amendment to
         the Certificate of Trust unless such amendment is required to be filed
         under the Business Trust Statute;

                           (c) the amendment of the Indenture by a supplemental
         indenture (i) in circumstances where the consent of any Noteholder is
         required or (ii) in circumstances where the consent of the Noteholders
         is not required unless such amendment would not, based upon an Opinion
         of Counsel on which the Owner Trustee may rely, materially and
         adversely affect the interests of the Certificateholders; or

                           (d) the amendment, change or modification of the
         Administration Agreement or the Sale and Servicing Agreement, unless
         such amendment would not, based upon an Opinion of Counsel on which the
         Owner Trustee may rely, materially and adversely affect the interests
         of 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 prior written consent
of the Certificateholders and the delivery to the Owner Trustee by the
Certificateholders of a certificate certifying that the Certificateholders
reasonably believe that the Trust is insolvent.

                  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 Related
Documents or would be contrary to Section 2.3, nor shall the Owner Trustee be
obligated to determine if a Certificateholder's direction violates this Section
4.4 or to follow any such direction, if given.

                                      -14-
<PAGE>   19

                                    ARTICLE V

                   APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

                  SECTION 5.1. Trust Accounts.

                           (a) On or prior to the Closing Date, the Depositor
         shall cause the Servicer to establish the Certificate Distribution
         Account in the name of the Owner Trustee for the benefit of the
         Certificateholders. The Certificate Distribution Account shall be an
         Eligible Account and initially shall be a segregated trust account
         established with the Owner Trustee and maintained with the Owner
         Trustee.

                           (b) The Trust shall possess all right, title and
         interest in all funds on deposit from time to time in the Certificate
         Distribution Account and in all proceeds thereof. If, at any time, the
         Certificate Distribution Account ceases to be an Eligible Account, the
         Owner Trustee shall within 5 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 Account
         and shall transfer any cash and/or any investments to such new
         Certificate Distribution Account.

                           (c) All amounts held in the Certificate Distribution
         Account shall, to the extent permitted by applicable laws, rules and
         regulations, be invested by the Paying Agent in Eligible Investments
         pursuant to the written instructions of the Administrator that mature
         not later than one Business Day prior to the Distribution Date for the
         Monthly Period to which such amounts relate. Investments in Eligible
         Investments shall be made in the name of the Trust, and such
         investments shall not be sold or disposed of prior to their maturity.
         Any investment of funds in the Certificate Distribution Account shall
         be made in Eligible Investments held by a financial institution with
         respect to which (a) such institution has noted the Trust's interest
         therein by book entry or otherwise and (b) a confirmation of the
         Trust's interest has been sent to the Owner Trustee by such
         institution, provided that such Eligible Investments are (i) specific
         certificated securities, and (ii) either (A) in the possession of such
         institution or (B) in the possession of a clearing corporation in New
         York or Delaware, registered in the name of such clearing corporation,
         not endorsed for collection or surrender or any other purpose not
         involving transfer, not containing any evidence of a right or interest
         inconsistent with the Trust's security interest therein, and held by
         such clearing corporation in an account of such institution. Subject to
         the other provisions hereof, the Paying Agent shall have sole control
         over each such investment and the income thereon, and any certificate
         or other instrument evidencing any such investment, if any, shall be
         delivered directly to the Trust or its agent, together with each
         document of transfer, if any, necessary to transfer title to such
         investment to the Trust in a manner which complies with this Section
         5.1. All interest, dividends, gains upon sale and other income from, or
         earnings on investment of funds in the Certificate Distribution Account
         shall be distributed on the next Distribution Date pursuant to Section
         5.2(a). The Servicer shall deposit

                                      -15-
<PAGE>   20

         in the Certificate Distribution Account an amount equal to any net loss
         on such investments immediately as realized.

                  SECTION 5.2. Application of Funds in Certificate Distribution
Account.

                           (a) On each Distribution Date, the Paying Agent will,
         based on the information contained in the Servicer's Certificate
         delivered on the related Determination Date pursuant to Section 3.9 of
         the Sale and Servicing Agreement, distribute to Certificateholders, on
         a pro rata basis to the extent of the funds available, amounts and
         deposited in the Certificate Distribution Account pursuant to the Sale
         and Servicing Agreement.

                           (b) On the Distribution Date following the date on
         which amounts received in respect of the Servicer's exercise of its
         option to purchase the corpus of the Trust pursuant to Section 9.1(a)
         of the Sale and Servicing Agreement are deposited in the Certificate
         Distribution Account, the Paying Agent will distribute such amounts to
         Certificateholders in the manner described in Section 5.2(a).

                           (c) On the Distribution Date following the date on
         which the Indenture Trustee makes payments of money or property in
         respect of liquidation of the Trust Property pursuant to Section 5.06
         of the Indenture and deposits funds received in connection with such
         liquidation in the Certificate Distribution Account, the Paying Agent
         will distribute such funds to Certificateholders in the manner
         described in Section 5.2(a).

                           (d) On each Distribution Date, the Owner Trustee
         shall send or cause to be sent to each Certificateholder the statement
         required pursuant to Section 4.8 of the Sale and Servicing Agreement.

                           (e) To the extent required by the Code, the Servicer
         shall notify the Paying Agent of the amount, if any, to be withheld,
         and the Paying Agent shall withhold from each payment due hereunder or
         under any Certificate, United States withholding taxes at the
         appropriate rate, and, on a timely basis, to deposit such amounts with
         an authorized depository and make such returns, filings and other
         reports in connection therewith as are required of it under the Code.
         Any Certificateholder which is eligible for an exemption from or
         reduction of withholding of United States federal income taxes shall,
         from time to time, provide to the Servicer, the Owner Trustee and the
         Paying Agent in a timely manner all appropriate and properly completed
         forms indicating such eligibility, as may be necessary to permit the
         Paying Agent not to withhold taxes from payments due to such
         Certificateholder. In connection with the foregoing, upon request, the
         Owner Trustee shall promptly furnish or cause to be furnished to each
         Certificateholder in a timely fashion such U.S. Treasury forms as are
         required by the Code to be furnished to such Certificateholder
         indicating payment of any taxes withheld from any payments by the
         Paying Agent to such Certificateholder. The Owner Trustee and the
         Paying Agent shall be fully protected in relying upon, and each
         Certificateholder by its acceptance of a Certificate hereunder agrees
         to indemnify and hold the Owner Trustee, the Paying Agent and the
         Servicer harmless against all claims or liability of any kind arising
         in connection with or related to the Owner Trustee's or the Paying
         Agent's reliance upon any documents, forms or information provided by
         any Certificateholder to the Owner Trustee, the

                                      -16-
<PAGE>   21

         Paying Agent or the Owner Trustee. In addition, if the Paying Agent has
         not withheld taxes on any payment made to any Certificateholder, and
         the Paying Agent is subsequently required to remit to any taxing
         authority any such amount not withheld, such Certificateholder shall
         return such amount to the Paying Agent upon written demand by the
         Paying Agent. In no event shall the Owner Trustee or the Paying Agent
         be liable for consequential damages to any Certificateholder.

                  SECTION 5.3. Method of Payment. Subject to Section 9.1(c),
distributions required to be made to Certificateholders on any Distribution Date
shall be made to each Certificateholder of record on the preceding Record Date
either by wire transfer, in immediately available funds, to the account of such
Holder at a bank or other entity having appropriate facilities therefor, if such
Certificateholder shall have provided to the Certificate Registrar appropriate
written instructions at least five Business Days prior to such Distribution Date
and such Holder's Certificates in the aggregate evidence a denomination of not
less than $1,000,000, or, if not, by check mailed to such Certificateholder at
the address of such holder appearing in the Certificate Register.

                  SECTION 5.4. No Segregation of Monies; No Interest. Any monies
received by the Owner Trustee or Paying Agent hereunder need not be segregated
in any manner except to the extent required by law and may be deposited under
such general conditions as may be prescribed by law, and, except as provided
herein, the Paying Agent and the Owner Trustee shall not be liable for any
interest thereon.

                  SECTION 5.5. Accounting; Reports; Tax Returns.

                           (a) It is the intention of the parties that the Trust
         will be treated as a partnership for tax purposes. Accordingly, the
         Administrator has agreed pursuant to the Administration Agreement that
         the Administrator shall, as appropriate: (i) maintain (or cause to be
         maintained) the books of the Trust on a calendar year basis on the
         accrual method of accounting, (ii) upon request, deliver to each
         Certificateholder, as may be required by the Code, such information as
         may be required to enable each Certificateholder to prepare its federal
         and state income tax returns, (iii) obtain a federal tax identification
         number for the Trust, and file or cause to be filed such tax returns
         relating to the Trust (once such returns are delivered to it in final
         form), and direct the Owner Trustee to 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 a partnership for federal income tax
         purposes, (iv) collect or cause to be collected any withholding tax as
         described in and in accordance with Section 5.2(f) with respect to
         income or distributions to Certificateholders and (v) cooperate in the
         filing of all documents required to be filed by the Trust with the
         Securities and Exchange Commission and otherwise take or cause to be
         taken all

                                      -17-
<PAGE>   22

         such actions as are notified by the Servicer to the Administrator as
         being required for the Trust's compliance with all applicable
         provisions of state and federal securities laws.

                           (b) The Owner Trustee shall sign on behalf of the
         Trust the tax returns of the Trust provided it in execution form,
         unless applicable law requires the Certificateholders to sign such
         documents, in which case such documents shall be signed by the
         Certificateholders.

                           (c) None of the parties hereto shall make the
         election provided in Treasury Regulation Section 301.7701-3(c) to have
         the Trust classified as an association taxable as a corporation.

                                   ARTICLE VI

                      AUTHORITY AND DUTIES OF OWNER TRUSTEE

                  SECTION 6.1. General Authority. The Owner Trustee is
authorized and directed to execute and deliver the Related Documents to which
the Trust is to be a party and each certificate or other document attached as an
exhibit to or contemplated by the Related Documents to which the Trust is to be
a party and any amendment thereto, and on behalf of the Trust, to direct the
Indenture Trustee to authenticate and deliver the Class A-1 Notes in the
aggregate principal amount of $207,000,000, the Class A-2 Notes in the aggregate
principal amount of $92,000,000, the Class A-3 Notes in the aggregate principal
amount of $301,000,000, the Class M Notes in the aggregate principal amount of
$64,583,000, and the Class B Notes in the aggregate principal amount of
$85,417,000. 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 Related Documents. The Owner Trustee is further authorized, on behalf of the
Trust, to enter into the Administration Agreement, to appoint a successor
Administrator and to take from time to time such action as the Instructing Party
recommends with respect to the Related Documents so long as such actions are
consistent with the terms of the Related Documents.

                  SECTION 6.2. General Duties. It shall be the duty of the Owner
Trustee to discharge (or cause to be discharged through the Administrator or
such agents as shall be appointed from time to time) all of its responsibilities
pursuant to the terms of this Agreement and the Related Documents and to
administer the Trust, subject to the Related Documents and in accordance with
the provisions of this Agreement. Notwithstanding the foregoing, the Owner
Trustee shall be deemed to have discharged its duties and responsibilities
hereunder and under the Related 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 Related 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. Notwithstanding
anything herein or in any Related Document to the contrary, the Owner Trustee
shall discharge its obligations pursuant to Section 8.2 and Section 8.3 of the
Sale and Servicing Agreement directly and not through the Administrator or any
agent.

                                      -18-
<PAGE>   23

                  SECTION 6.3. Action upon Instruction.

                  (a) Subject to Article IV, the Certificateholders shall have
the exclusive right to direct the actions of the Owner Trustee in the management
of the Trust, so long as such instructions are not inconsistent with the express
terms set forth herein or in any Related Document. The Certificateholders shall
not instruct the Owner Trustee in a manner inconsistent with this Agreement or
the Related Documents. Notwithstanding the foregoing, the Owner Trustee shall,
upon due authorization and consent by the Seller, execute and deliver such
notices, consents to the service of process and other necessary registration
forms as may be required to qualify the Trust under the securities laws of any
jurisdiction in which the underwriters of the Trust's securities may seek to
qualify the securities for sale. The Trust is not hereby authorized
without the express consent of the Seller to qualify the Seller as a foreign
corporation or to execute on behalf of the Seller a general consent to service
of process in any jurisdiction.

                  (b) The Owner Trustee shall not be required to take any action
hereunder or under any Related Document if the Owner Trustee shall have
reasonably determined, or shall have been advised by counsel, that such action
is contrary to the terms hereof or of any Related Document or is otherwise
contrary to law.

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

                  (d) In accepting the trusts hereby created, the Owner Trustee
acts solely as trustee hereunder and not in its individual capacity. The Owner
Trustee agrees to disburse any monies actually received by it constituting part
of the Trust Property upon the terms of this Agreement. Notwithstanding anything
in this Agreement to the contrary, the Owner Trustee, when acting in such
capacity, shall not be personally liable or accountable to any Person, under any
circumstances, except by reason of its gross negligence, willful misconduct or
breach of its representations, warranties or covenants.

                  (e) The Owner Trustee shall be under no liability (except as
provided in (d) above) for any action taken by the Owner Trustee in good faith
in reliance upon any paper, order, list, demand, request, consent, affidavit,
notice, opinion, direction, endorsement, assignment, resolution, draft or other
document believed by it to be genuine and to have been signed by the proper
party or parties or for the disposition of monies or Trust Property pursuant to
this Agreement. As to any fact or matter, the manner of ascertainment 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 officer 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.

                                      -19-
<PAGE>   24

                  (f) Whenever the Owner Trustee is unable to decide between
alternative courses of action permitted or required by the terms of this
Agreement or any Related Document, 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 written instruction received from the Certificateholders, the Owner
Trustee shall not be liable on account of such action to any Person. If the
Owner Trustee shall not have received appropriate instruction 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, not
inconsistent with this Agreement or the Related Documents, as it shall deem to
be in the best interests of the Certificateholders, and shall have no liability
to any Person for such action or inaction.

                  (g) In the event that the Owner Trustee is unsure as to the
application of any provision of this Agreement or any Related Document or any
such provision is ambiguous as to its application, or is, or appears to be, in
conflict with any other applicable provision, or in the event that this
Agreement permits any determination by the Owner Trustee or is silent or is
incomplete as to the course of action that the Owner Trustee is required to take
with respect to a particular set of facts, the Owner Trustee may give notice (in
such form as shall be appropriate under the circumstances) to the
Certificateholders requesting instruction and, to the extent that the Owner
Trustee acts or refrains from acting in good faith in accordance with any such
instruction received, the Owner Trustee shall not be liable, on account of such
action or inaction, to any Person. If the Owner Trustee shall not have received
appropriate instruction within 10 days of such notice (or within such shorter
period of time as reasonably may be specified in such notice or may be necessary
under the circumstances) it may, but shall be under no duty to, take or refrain
from taking such action, not inconsistent with this Agreement or the Related
Documents, as it shall deem to be in the best interests of the
Certificateholders, and shall have no liability to any Person for such action or
inaction.

                  SECTION 6.4. No Duties Except as Specified in this Agreement
or in Instructions. The Owner Trustee shall not have any duty or obligation to
manage, make any payment with respect to, register, record, sell, dispose of, or
otherwise deal with the Trust Property, or to otherwise take or refrain from
taking any action under, or in connection with, any document contemplated hereby
to which the Trust is a party, except as expressly provided by the terms of this
Agreement (including as provided in Section 6.2) or in any written instruction
received by the Owner Trustee pursuant to Section 6.3; and no implied duties or
obligations shall be read into this Agreement or any Related Document against
the Owner Trustee. The Owner Trustee shall have no responsibility for preparing,
monitoring or filing any financing or continuation statements in any public
office at any time or otherwise to perfect or maintain the perfection of any
security interest or lien granted to it hereunder or to record this Agreement or
any Related Document; however, the Owner Trustee will from time to time execute
and deliver such financing or continuation statements as are prepared by the
Servicer and delivered to the Owner Trustee for its execution on behalf of the
Trust for the purpose of perfecting or maintaining the perfection of such a
security interest or lien or effecting such a recording. The Owner Trustee
nevertheless agrees that it will, at its own cost and expense (and not at the
expense of the Trust), promptly take all action as may be necessary to discharge
any liens on any part of the Trust Property

                                      -20-
<PAGE>   25

that are attributable to claims against the Owner Trustee in its individual
capacity that are not related to the ownership or the administration of the
Trust Property.

                  SECTION 6.5. No Action Except under Specified Documents or
Instructions. The Owner Trustee shall not manage, control, use, sell, dispose of
or otherwise deal with any part of, the Trust Property except (i) in accordance
with the powers granted to and the authority conferred upon the Owner Trustee
pursuant to this Agreement, (ii) in accordance with the Related Documents and
(iii) in accordance with any document or instruction delivered to the Owner
Trustee pursuant to Section 6.3.

                  SECTION 6.6. Restrictions. The Owner Trustee shall not take
any action (i) that is inconsistent with the purposes of the Trust set forth in
Section 2.3 or (ii) that, to the actual knowledge of the Owner Trustee, would
result in the Trust's becoming taxable as a corporation for Federal income tax
purposes.

                  SECTION 6.7. Administration Agreement.

                  (a) The Administrator is authorized to execute on behalf of
the Trust all documents, reports, filings, instruments, certificates and
opinions as it shall be the duty of the Trust to prepare, file or deliver
pursuant to the Related Documents. Upon written request, the Owner Trustee shall
execute and deliver to the Administrator a power of attorney appointing the
Administrator its agent and attorney-in-fact to execute all such documents,
reports, filings, instruments, certificates and opinions.

                  (b) If the Administrator shall resign or be removed pursuant
to the terms of the Administration Agreement, the Owner Trustee may, and is
hereby authorized and empowered to, appoint or consent to the appointment of a
successor Administrator pursuant to the Administration Agreement.

                  (c) If the Administration Agreement is terminated, the Owner
Trustee may, and is hereby authorized and empowered to, with the consent of the
Certificateholders, appoint or consent to the appointment of a Person to perform
substantially the same duties as are assigned to the Administrator in the
Administration Agreement pursuant to an agreement containing substantially the
same provisions as are contained in the Administration Agreement.

                  (d) The Owner Trustee shall promptly notify the Depositor of
any default by or misconduct of the Administrator under the Administration
Agreement of which the Owner Trustee has received written notice or of which a
Responsible Officer has actual knowledge.

                                      -21-
<PAGE>   26

                                   ARTICLE VII

                          CONCERNING THE OWNER TRUSTEE

                  SECTION 7.1. Acceptance of Trustee and Duties. 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 Trust Property upon the terms of the Related Documents
and this Agreement. The Owner Trustee shall not be answerable or accountable
hereunder or under any Related Document under any circumstances, except (i) for
its own willful misconduct or gross negligence, (ii) in the case of the
inaccuracy of any representation or warranty contained in Section 7.3, (iii) for
liabilities arising from the failure of the Owner Trustee to perform obligations
expressly undertaken by it in the last sentence of Section 6.4 hereof, (iv) for
any investments issued by the Owner Trustee or any branch or affiliate thereof
in its commercial capacity or (v) for taxes, fees or other charges on, based on
or measured by, any fees, commissions or compensation received 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 not be liable for any
         error of judgment made in good faith by a Responsible Officer of the
         Owner Trustee;

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

                           (c) no provision of this Agreement or any Related
         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 Related 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 this Agreement or
         any of the Related Documents, including the principal of and interest
         on the Notes;

                           (e) the Owner Trustee shall not be responsible for or
         in respect of the validity or sufficiency of this Agreement or for the
         due execution hereof by the Depositor or for the form, character,
         genuineness, sufficiency, value or validity of any of the Trust
         Property or for or in respect of the validity or sufficiency of the
         Related Documents, other than the certificate of authentication on the
         Certificates, and the Owner Trustee shall in no event assume or incur
         any liability, duty, or obligation to the Custodian, the Indenture
         Trustee, any Noteholder or any Certificateholder, other than as
         expressly provided for herein and in the Related Documents;

                                      -22-
<PAGE>   27

                           (f) the Owner Trustee shall not be liable for the
         default or misconduct of the Administrator, the Paying Agent, the
         Custodian, the Indenture Trustee or the Servicer under any of the
         Related 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 Related Documents that are required to be
         performed by the Administrator under the Administration Agreement, the
         Custodian under the Custodian Agreement, the Indenture Trustee under
         the Indenture or the Servicer under the 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 Related Document, at
         the request, order or direction 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 Related Document shall not
         be construed as a duty, and the Owner Trustee shall not be answerable
         for other than its gross negligence or willful misconduct in the
         performance of any such act.

                  SECTION 7.2. 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 Related Documents unless the Certificateholders have
previously received such items.

                  SECTION 7.3. Representations and Warranties. The Owner Trustee
hereby represents and warrants to the Depositor and the Certificateholders that:

                           (a) It is a banking corporation duly organized and
         validly existing in good standing under the laws of the State of
         Delaware. It has all requisite corporate power and authority and all
         franchises, grants, authorizations, consents, orders and approvals from
         all governmental authorities necessary to execute, deliver and perform
         its obligations under this Agreement and each Related Document to which
         the Trust is a party.

                           (b) It has taken all corporate action necessary to
         authorize the execution and delivery by it of this Agreement and each
         Related Document to which the Trust is a party, and this Agreement and
         each Related Document will be executed and delivered by one of its
         officers who is duly authorized to execute and deliver this Agreement
         on its behalf.

                           (c) Neither the execution nor the delivery by it of
         this Agreement, nor the consummation by it of the transactions
         contemplated hereby nor compliance by it with any of the terms or
         provisions hereof will contravene any Federal or Delaware law,
         governmental rule or regulation governing the banking or trust powers
         of the Owner Trustee or any judgment or

                                      -23-
<PAGE>   28

         order binding on it, or constitute any default under its charter
         documents or by-laws or any indenture, mortgage, contract, agreement or
         instrument to which it is a party or by which any of its properties may
         be bound or result in the creation or imposition of any lien, charge or
         encumbrance on the Trust Property resulting from actions by or claims
         against the Owner Trustee individually which are unrelated to this
         Agreement or the Related Documents.

                  SECTION 7.4. 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. 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
Related Documents, the Owner Trustee (i) may act directly or through its agents
or attorneys 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 or
attorneys if such agents or attorneys shall have been selected by the Owner
Trustee with reasonable care, and (ii) may consult with counsel, accountants and
other skilled persons 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 written opinion or advice of any such
counsel, accountants or other such persons and not contrary to this Agreement or
any Related Document.

                  SECTION 7.5. Not Acting in Individual Capacity. Except as
provided in this Article VII, in accepting the trusts hereby created Wilmington
Trust Company 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 Related Document shall
look only to the Trust Property for payment or satisfaction thereof.

                  SECTION 7.6. Owner Trustee Not Liable for Certificates, Notes
or Receivables. The recitals contained herein and in the Certificates (other
than the signature and counter-signature of the Owner Trustee on the
Certificates) shall be taken as the statements of the Depositor (other than the
signature or counter-signature of the Owner Trustee on the Notes), and the Owner
Trustee assumes no responsibility for the correctness thereof. The Owner Trustee
makes no representations as to the validity or sufficiency of this Agreement, of
any Related Document or of the Certificates (other than the signature and
counter-signature of the Owner Trustee on the Certificates) or the Notes (other
than the

                                      -24-
<PAGE>   29

signature or counter-signature of the Owner Trustee on the Notes), or of any
Receivable or related documents. 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 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 Trust Property or its
ability to generate the payments to be distributed to Noteholders under the
Indenture or any payments to Certificateholders under this Agreement, 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 or 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 Related Document or in any Related
Document, or the accuracy of any such warranty or representation or any action
of the Paying Agent, the Indenture Trustee, the Custodian or the Servicer taken
in the name of the Owner Trustee.

                  SECTION 7.7. 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 Depositor, the Seller,
the Indenture Trustee and the Servicer in banking or other transactions with the
same rights as it would have if it were not Owner Trustee.

                                  ARTICLE VIII

                          COMPENSATION OF OWNER TRUSTEE

                  SECTION 8.1. Owner Trustee's Fees and Expenses. The Owner
Trustee shall receive as compensation for its services hereunder such fees as
have been separately agreed upon before the date hereof between AFL and the
Owner Trustee, and the Owner Trustee shall be entitled to be reimbursed by AFL
for its other reasonable expenses hereunder, including the reasonable
compensation, expenses and disbursements of such agents, representatives,
experts and counsel as the Owner Trustee may employ in connection with the
exercise and performance of its rights and its duties hereunder; provided,
however, that the Owner Trustee shall only be entitled to reimbursement for
expenses hereunder to the extent such expenses (i) are fees of outside counsel
engaged by the Owner Trustee in respect of the performance of its obligations
hereunder or (ii) relate to the performance of its obligations pursuant to
Section 5.5 hereof.

                  SECTION 8.2. Indemnification. AFL shall be liable as primary
obligor for, and shall indemnify the Owner Trustee in its individual capacity
and its successors, assigns, agents and servants, and any co-trustee
(collectively, the "Indemnified Parties") from and against, any and all
liabilities, obligations, losses, damages, taxes, claims, actions and suits, and
any and all reasonable costs, expenses and disbursements (including reasonable
legal fees and expenses) of any kind and nature whatsoever (collectively,
"Expenses") which may at any time be imposed on, incurred by, or asserted

                                      -25-
<PAGE>   30

against the Owner Trustee or any Indemnified Party in any way relating to or
arising out of this Agreement, the Related Documents, the Trust Property, the
administration of the Trust Property or the action or inaction of the Owner
Trustee hereunder, except only that AFL shall not be liable for or required to
indemnify the Owner Trustee from and against Expenses arising or resulting from
any of the matters described in the third sentence of Section 7.1. The
indemnities contained in this Section shall survive the resignation or
termination of the Owner Trustee or the termination of this Agreement.

                  SECTION 8.3. Non-recourse Obligations. Notwithstanding
anything in this Agreement or any Related Document, the Owner Trustee agrees in
its individual capacity and in its capacity as Owner Trustee for the Trust that
all obligations of the Trust to the Owner Trustee individually or as Owner
Trustee for the Trust shall be recourse to the Trust Property only.

                                   ARTICLE IX

                                   TERMINATION

                  SECTION 9.1. Termination of the Trust.

                           (a) The respective obligations and responsibilities
         of the Depositor and the Owner Trustee created by this Agreement and
         the Trust created by this Agreement shall terminate upon the later of
         (i) the maturity or other liquidation of the last Receivable (including
         the purchase as of any Accounting Date by the Seller or the Servicer at
         its option of the corpus of the Trust as described in Section 9.1 of
         the Sale and Servicing Agreement) and the subsequent distribution of
         amounts in respect of such Receivables as provided in the Related
         Documents, (ii) the payment to Certificateholders of all amounts
         required to be paid to them pursuant to the Agreement and (iii) the
         written consent of 100% of the Noteholders and 100% of the
         Certificateholders. In any case, there shall be delivered to the Owner
         Trustee, the Indenture Trustee and the Rating Agencies an Opinion of
         Counsel that all applicable preference periods under federal, state and
         local bankruptcy, insolvency and similar laws have expired with respect
         to the payments pursuant to clause (ii); provided, however, that in no
         event shall the trust created by this Agreement continue beyond the
         expiration of 21 years from the death of the last survivor of the
         descendants living on the date of this Agreement of Rose Kennedy of the
         Commonwealth of Massachusetts; and provided, further, that the rights
         to indemnification under Section 8.2 shall survive the termination of
         the Trust. The Servicer shall promptly notify the Owner Trustee of any
         prospective termination pursuant to this Section 9.1. Except as
         provided in Section 9.2, the bankruptcy, liquidation, dissolution,
         termination, resignation, expulsion, withdrawal, death or incapacity of
         any Owner, shall not (x) operate to terminate this Agreement or the
         Trust, nor (y) entitle such Owner'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 Trust
         Property nor (z) otherwise affect the rights, obligations and
         liabilities of the parties hereto.

                                      -26-
<PAGE>   31

                           (b) Except as provided in Section 9.1(a), the
         Depositor shall not be entitled to revoke or terminate the Trust.

                           (c) Within five Business Days of receipt of notice of
         termination of the Trust given pursuant to Section 9.1(b) of the Sale
         and Servicing Agreement, to the extent such information has been
         provided to the Owner Trustee, the Owner Trustee shall mail written
         notice to each Certificateholder specifying (i) the Distribution Date
         upon which final payment of the Certificates shall be made upon
         presentation and surrender of Certificates at the office of the Paying
         Agent therein specified, (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 at the time such notice is given to Certificateholders. In
         the event such notice is given, (i) the Indenture Trustee shall make
         deposits into the Certificate Distribution Account in accordance with
         Section 4.6 of the Sale and Servicing Agreement, or, (ii) in the case
         of an optional purchase of Receivables pursuant to Section 9.1 of the
         Sale and Servicing Agreement, the Indenture Trustee shall deposit the
         amount specified in Section 9.1 of the Sale and Servicing Agreement.
         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) In the event that all of the Certificateholders
         shall not surrender their Certificates for cancellation within six
         months after the date specified in the above-mentioned written notice,
         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 remain subject to this Agreement. Any funds which are
         payable to Certificateholders remaining in the Trust after 18 months
         following the initial notice shall be distributed by the Owner Trustee
         or the Paying Agent, as the case may be, to The United Way (but only
         upon termination of this Agreement), and the Certificateholders, by
         acceptance of their Certificates, hereby waive any rights with respect
         to such funds.

                           (e) Upon the winding up of the Trust and its
         termination, 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.

                                      -27-
<PAGE>   32

                                    ARTICLE X

             SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

                  SECTION 10.1. Eligibility Requirements for Owner Trustee. The
Owner Trustee shall at all times be a corporation (i) satisfying the provisions
of Section 3807(a) of the Business Trust Statute; (ii) authorized to exercise
corporate trust powers; (iii) having a combined capital and surplus of at least
$50,000,000 and subject to supervision or examination by Federal or State
authorities; and (iv) having (or having a parent which has) a rating of at least
Baa3 by Moody's or A-1 by Standard & Poor's or is otherwise acceptable to the
Rating Agencies. 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, 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. In
case at any time the Owner Trustee shall cease to be eligible in accordance with
the provisions of this Section, the Owner Trustee shall resign immediately in
the manner and with the effect specified in Section 10.2.

                  SECTION 10.2. Resignation or Removal of Owner Trustee. The
Owner Trustee may at any time resign and be discharged from the trusts hereby
created by giving written notice thereof to the Depositor and the Servicer at
least 30 days before the date specified in such instrument. Upon receiving such
notice of resignation, the Depositor shall promptly appoint a successor Owner
Trustee meeting the qualifications set forth in Section 10.1 by written
instrument, in duplicate, one copy of which instrument shall be delivered to the
resigning Owner Trustee and one copy to the successor Owner Trustee. If no
successor Owner Trustee shall have been so appointed and have accepted
appointment within 30 days after the giving of such notice of resignation, the
resigning Owner Trustee may petition any court of competent jurisdiction for the
appointment of a successor Owner Trustee.

                  If at any time the Owner Trustee shall cease to be eligible in
accordance with the provisions of Section 10.1 and shall fail to resign after
written request therefor by the Depositor or if at any time the Owner Trustee
shall be legally unable to act, or shall be adjudged bankrupt or insolvent, or a
receiver of the Owner Trustee or of its property shall be appointed, or any
public officer shall take charge or control of the Owner Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation, then the Depositor may remove the Owner Trustee. If the Depositor
shall remove the Owner Trustee under the authority of the immediately preceding
sentence, the Depositor shall promptly appoint a successor Owner Trustee meeting
the qualification requirements of Section 10.1 by written instrument, in
triplicate, one copy of which instrument shall be delivered to the outgoing
Owner Trustee so removed, and one copy to the successor Owner Trustee and
payment of all fees owed to the outgoing Owner Trustee.

                  Any resignation or removal of the Owner Trustee and
appointment of a successor Owner Trustee pursuant to any of the provisions of
this Section shall not become effective until all fees and expenses, including
any indemnity payments, due to the outgoing Owner Trustee have been paid and
until acceptance of appointment by the successor Owner Trustee pursuant to
Section 10.3. The

                                      -28-
<PAGE>   33

Depositor shall provide notice of such resignation or removal of the Owner
Trustee to each of the Rating Agencies.

                  SECTION 10.3. Successor Owner Trustee. Any successor Owner
Trustee appointed pursuant to Section 10.2 shall execute, acknowledge and
deliver to the Depositor and to its predecessor Owner Trustee an instrument
accepting such appointment under this Agreement, and thereupon the resignation
or removal of the predecessor Owner Trustee shall become effective and such
successor Owner Trustee, without any further act, deed or conveyance, 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 predecessor Owner Trustee shall deliver to the successor
Owner Trustee all documents and statements and monies held by it under this
Agreement; and the Depositor 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.

                  No successor Owner Trustee shall accept appointment as
provided in this Section unless at the time of such acceptance such successor
Owner Trustee shall be eligible pursuant to Section 10.1.

                  Upon acceptance of appointment by a successor Owner Trustee
pursuant to this Section, the Depositor shall mail notice of the successor of
such Owner Trustee to the Indenture Trustee, the Noteholders and the Rating
Agencies. If the Depositor shall fail to mail such notice within 10 days after
acceptance of appointment by the successor Owner Trustee, the successor Owner
Trustee shall cause such notice to be mailed at the expense of the Depositor. To
the extent required by the Delaware Business Trust Statute, any successor Owner
Trustee appointed hereunder shall promptly file an amendment to the Certificate
of Trust.

                  SECTION 10.4. Merger or Consolidation of Owner Trustee. Any
corporation into which the Owner Trustee may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Owner Trustee shall be a party, or any
corporation 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 corporation shall be eligible pursuant to Section 10.1,
without the execution or filing of any instrument or any further act on the part
of any of the parties hereto, anything herein to the contrary notwithstanding,
and provided further that the Owner Trustee shall mail notice of such merger or
consolidation to the Rating Agencies.

                  SECTION 10.5. Appointment of Co-Trustee or Separate Trustee.
Notwithstanding any other provisions of this Agreement, at any time, for the
purpose of meeting any legal requirements of any jurisdiction in which any part
of the Trust Property or any Financed Vehicle may at the time be located, the
Administrator and the Owner Trustee acting jointly shall have the power and
shall 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 separate trustee or separate trustees, of all or any part of

                                      -29-
<PAGE>   34

the Trust Property, 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, 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, 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 10.1 and no notice of the appointment of any co-trustee or
separate trustee shall be required pursuant to Section 10.1.

                  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 Property
         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.

                  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.

                  Any separate trustee or co-trustee may at any time appoint the
Owner Trustee, its agent or attorney-in-fact with full power and authority, to
the extent not prohibited by law, to do any lawful act under or in respect of
this Agreement on its behalf and in its name. If any separate trustee or
co-trustee shall die, become incapable of acting, resign or be removed, all of
its estates, properties,

                                      -30-
<PAGE>   35

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.

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

                  SECTION 11.1. Amendment.

                  (a) This Agreement may be amended by the Depositor and the
Owner Trustee (on behalf of the Certificateholders) but without the consent of
any of the Noteholders (i) to cure any ambiguity, or (ii) to correct, supplement
or modify any provisions in this Agreement; provided, however, that such
provisions or revisions: (A) only amend items that are administrative in nature,
(B) cannot change the substantive provisions effecting the terms of the Trust,
collecting cash proceeds from assets held, reinvesting proceeds from
collections, otherwise servicing the assets and distribution proceeds to the
Noteholders and (C) cannot be contrary to powers that are allowed for GAAP sales
treatment under existing accounting literature; and that such action shall not,
as evidenced by an Opinion of Counsel, adversely affect in any material respect
the interests of any Noteholder; provided, further, that any amendment within
the scope of Section 11.1(b)(i) or (ii) shall be deemed to materially and
adversely affect the interests of the Noteholders or the Certificateholders.

                  (b) This Agreement may also be amended from time to time by
the Depositor and the Owner Trustee and, if such amendment materially and
adversely affects the interests of Noteholders, the consent of a Note Majority
(which consent of any Holder of a Note given pursuant to this Section or
pursuant to any other provision of this Agreement shall be conclusive and
binding on such Holder and on all future Holders of such Note and of any Note
issued upon the transfer thereof or in exchange thereof or in lieu thereof
whether or not notation of such consent is made upon the Note) 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
Holders of Notes; provided, however, that, no such amendment shall (i) increase
or reduce in any manner the amount of, or accelerate or delay the timing of,
collections of payments on Receivables or distributions that shall be required
to be made on any Note or the Class A-1 Interest Rate, the Class A-2 Interest
Rate, the Class A-3 Interest Rate, the Class M Interest Rate or the Class B
Interest Rate, or (ii) reduce the aforesaid percentage required to consent to
any such amendment or any waiver hereunder, without the consent of the Holders
of all Notes then outstanding.

                  (c) Prior to the execution of any such amendment or consent,
the Depositor shall furnish written notification of the substance of such
amendment or consent to each Rating Agency.

                  (d) Promptly after the execution of any such amendment or
consent, the Owner Trustee shall furnish written notification of the substance
of such amendment or consent to the Certificateholders and the Indenture Trustee
unless such parties have previously received such notification.

                                      -31-
<PAGE>   36

                  (e) It shall not be necessary for the consent of
Certificateholders and Noteholders pursuant to Section 11.1(b) 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 and Noteholders
provided for in this Agreement) shall be subject to such reasonable requirements
as the Owner Trustee may prescribe, including the establishment of record dates.

                  (f) Prior to the execution of any amendment to this Agreement,
the Owner Trustee shall be entitled to receive and rely upon an Opinion of
Counsel stating that the execution of such amendment is authorized or permitted
by this Agreement and that all conditions precedent to the execution and
delivery of such amendment have been satisfied. 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.

                  SECTION 11.2. No Recourse. The Certificateholders by accepting
a Certificate acknowledges that such Certificateholder's Certificates represent
beneficial interests in the assets of the Trust only and do not represent
interests in or obligations of the Seller, the Servicer, the Owner Trustee, the
Indenture Trustee, the Administrator or any Affiliate of any of the foregoing
and no recourse 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 Related Documents.

                  SECTION 11.3. No Petition. To the extent permitted by law, the
Owner Trustee, by entering into this Trust Agreement, and each
Certificateholder, by accepting a Certificate, hereby covenant and agree that
they will not at any time institute against the Seller, the Issuer or the
Certificateholder, or join in or consent to any institution against the Seller,
the Issuer or the Certificateholder, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other proceedings under
any United States federal or state bankruptcy or similar law in connection with
any obligations relating to the Certificates, this Trust Agreement or any of the
Related Documents.

                  SECTION 11.4. Governing Law. This Agreement shall be governed
by and construed in accordance with the laws of the State of Delaware without
regard to the principles of conflicts of laws thereof and the obligations,
rights and remedies of the parties under this Agreement shall be determined in
accordance with such laws.

                  SECTION 11.5. Severability of Provisions. If any one or more
of the covenants, agreements, provisions or terms of this Agreement shall be for
any reason whatsoever held invalid, then such covenants, agreements, provisions
or terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement or of the Certificates
or the rights of the Holders thereof.

                  SECTION 11.6. Certificates Nonassessable and Fully Paid.
Certificateholders shall not be personally liable for obligations of the Trust,
the fractional undivided beneficial interests in the

                                      -32-
<PAGE>   37

Trust represented by the Certificates shall be nonassessable for any losses or
expenses of the Trust or for any reason whatsoever, and Certificates upon
execution thereof by the Owner Trustee pursuant to Section 3.3 are and shall be
deemed fully paid; provided, however, that this Section 11.6 shall not affect in
any way the terms set forth in Article VIII hereof.

                  SECTION 11.7. Third-Party Beneficiaries. This Agreement shall
inure to the benefit of and be binding upon the parties hereto and their
respective successors and permitted assigns. Except as otherwise provided in
this Agreement, no other Person shall have any right or obligation hereunder.

                  SECTION 11.8. Counterparts. For the purpose of facilitating
its execution and for other purposes, this Agreement may be executed
simultaneously in any number of counterparts, each of which counterparts shall
be deemed to be an original, and all of which counterparts shall constitute but
one and the same instrument.

                  SECTION 11.9. Notices. All demands, notices and communications
under this Agreement shall be in writing, personally delivered or mailed by
certified mail-return receipt requested, and shall be deemed to have been duly
given upon receipt (a) in the case of the Depositor, at the following address:
290 East Carpenter Freeway, 7 Decker, Irving, Texas 75062, Attention: Assistant
General Counsel, with copies to Arcadia Financial Ltd., 2001 Beach Street, Suite
300, Fort Worth, Texas 76103, Attention: President, and Associates Corporation
of North America, 250 East Carpenter Freeway, Irving, Texas 75062, Attention:
Senior Vice President - Corporate Finance, (b) in the case of the Owner Trustee,
Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890,
Attention: Corporate Trust Administration, (c) in the case of each Rating
Agency, 99 Church Street, New York, New York 10007 (for Moody's), and 55 Water
Street, New York, New York 10041, Attention: Asset-Backed Surveillance (for
Standard & Poor's), or at such other address as shall be designated by any such
party in a written notice to the other parties.

                                      -33-
<PAGE>   38

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

                                   ARCADIA RECEIVABLES FINANCE CORP.

                                    By:        /s/ Scott W. McCarthy
                                        ----------------------------------------
                                        By: Scott W. McCarthy
                                        Title: Senior Vice President

                                    WILMINGTON TRUST COMPANY

                                    By:        /s/ Anita Dallago
                                        ----------------------------------------
                                        Name: Anita Dallago
                                        Title: Financial Services Officer<PAGE>   1
                                                                     EXHIBIT 4.2

                 ASSOCIATES AUTOMOBILE RECEIVABLES TRUST 2000-1

              6.854% Class A-1 Automobile Receivables-Backed Notes
               7.15% Class A-2 Automobile Receivables-Backed Notes
               7.30% Class A-3 Automobile Receivables-Backed Notes
               7.51% Class M Automobile Receivables-Backed Notes
               7.83% Class B Automobile Receivables-Backed Notes

                                    INDENTURE

                            Dated as of June 1, 2000

                         BANK ONE, NATIONAL ASSOCIATION
                                     Trustee

<PAGE>   2

                              CROSS REFERENCE TABLE

<TABLE>
<CAPTION>
  TIA                                                                                                   Indenture
                                                                                                        ---------
Section                                                                                                  Section
-------                                                                                                 ---------
<S>                                                                                                  <C>
310(a)(1)........................................................................................          6.11
   (a)(2)........................................................................................          6.11
   (a)(3)........................................................................................          6.10
   (a)(4)........................................................................................       N.A.(2)
   (a)(5)........................................................................................          6.11
      (b)........................................................................................    6.08; 6.11
      (c)........................................................................................          N.A.
311(a)   ........................................................................................          6.12
      (b)........................................................................................          6.12
      (c)........................................................................................          N.A.
312(a)   ........................................................................................          7.01
      (b)........................................................................................          7.02
      (c)........................................................................................          7.02
313(a)   ........................................................................................          7.04
   (b)(1)........................................................................................          7.04
   (b)(2)........................................................................................          7.04
      (c)........................................................................................         11.05
      (d)........................................................................................          7.04
314(a)   ........................................................................................          7.03
      (b)........................................................................................   3.06; 11.15
   (c)(1)........................................................................................         11.01
   (c)(2)........................................................................................         11.01
   (c)(3)........................................................................................         11.01
      (d)........................................................................................         11.01
      (e)........................................................................................         11.01
      (f)........................................................................................         11.01
315(a)   ........................................................................................          6.01
      (b)........................................................................................   6.05; 11.05
      (c)........................................................................................          6.01
      (d)........................................................................................          6.01
      (e)........................................................................................          5.14
316(a)(last sentence)............................................................................          1.01
(a)(1)(A)........................................................................................          5.12
(a)(1)(B)........................................................................................          5.13
   (a)(2)........................................................................................          N.A.
      (b)........................................................................................          5.08
      (c)........................................................................................          N.A.
317(a)(1)........................................................................................          5.03
   (a)(2)........................................................................................          5.03
      (b)........................................................................................          3.03
318(a)   ........................................................................................         11.07
</TABLE>

1        Note: This Cross Reference Table shall not, for any purpose, be deemed
         to be part of this Indenture.

2        N.A. means Not Applicable.

<PAGE>   3

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                          Page

<S>                                                                                       <C>
ARTICLE I     DEFINITIONS AND INCORPORATION BY REFERENCE.....................................2
     SECTION 1.01.     Definitions...........................................................2
     SECTION 1.02.     Incorporation by Reference of Trust Indenture Act....................11
     SECTION 1.03.     Rules of Construction................................................11

ARTICLE II    THE NOTES.....................................................................12
     SECTION 2.01.     Form.................................................................12
     SECTION 2.02.     Execution, Authentication and Delivery...............................12
     SECTION 2.03.     Temporary Notes......................................................13
     SECTION 2.04.     Registration; Registration of Transfer and Exchange..................13
     SECTION 2.05.     Mutilated, Destroyed, Lost or Stolen Notes...........................15
     SECTION 2.06.     Person Deemed Owner..................................................16
     SECTION 2.07.     Payment of Principal and Interest....................................16
     SECTION 2.08.     Cancellation.........................................................17
     SECTION 2.09.     Book-Entry Notes.....................................................17
     SECTION 2.10.     Notices to Depository................................................18
     SECTION 2.11.     Definitive Notes.....................................................18

ARTICLE III   COVENANTS.....................................................................18
     SECTION 3.01.     Payment of Principal and Interest....................................18
     SECTION 3.02.     Maintenance of Office or Agency......................................19
     SECTION 3.03.     Money for Payments To Be Held in Trust...............................19
     SECTION 3.04.     Existence............................................................20
     SECTION 3.05.     Protection of Trust Estate...........................................21
     SECTION 3.06.     Opinions as to Trust Estate..........................................21
     SECTION 3.07.     Performance of Obligations; Servicing of Receivables.................22
     SECTION 3.08.     Negative Covenants...................................................24
     SECTION 3.09.     Annual Statement as to Compliance....................................25
     SECTION 3.10.     Issuer May Consolidate, etc. Only on Certain Terms...................25
     SECTION 3.11.     Successor or Transferee..............................................27
     SECTION 3.12.     No Other Business....................................................28
     SECTION 3.13.     No Borrowing.........................................................28
     SECTION 3.14.     Servicer's Obligations...............................................28
     SECTION 3.15.     Guarantees, Loans, Advances and Other Liabilities....................28
     SECTION 3.16.     Capital Expenditures.................................................28
     SECTION 3.17.     Restricted Payments..................................................28
     SECTION 3.18.     Notice of Events of Default..........................................29
</TABLE>

                                      - i -
<PAGE>   4

<TABLE>
<S>                                                                                       <C>
     SECTION 3.19.     Further Instruments and Acts.........................................29
     SECTION 3.20.     Compliance with Laws.................................................29
     SECTION 3.21.     Amendments of Sale and Servicing Agreement and
                       Trust Agreement......................................................29
     SECTION 3.22.     Removal of Administrator.............................................29
     SECTION 3.23.     Income Tax Characterization..........................................29

ARTICLE IV    SATISFACTION AND DISCHARGE....................................................29
     SECTION 4.01.     Satisfaction and Discharge of Indenture..............................29
     SECTION 4.02.     Application of Trust Money...........................................31
     SECTION 4.03.     Repayment of Moneys Held by Paying Agent.............................31
     SECTION 4.04.     Release of Trust Estate..............................................31

ARTICLE V     REMEDIES......................................................................31
     SECTION 5.01.     Events of Default....................................................31
     SECTION 5.02.     Rights upon Event of Default.........................................33
     SECTION 5.03.     Collection of Indebtedness and Suits for Enforcement
                       by Trustee; Authority of Trustee.....................................33
     SECTION 5.04.     Remedies.............................................................36
     SECTION 5.05.     Optional Preservation of the Receivables.............................37
     SECTION 5.06.     Priorities...........................................................38
     SECTION 5.07.     Limitation of Suits..................................................40
     SECTION 5.08.     Unconditional Rights of Noteholders To Receive Principal
                       and Interest.........................................................41
     SECTION 5.09.     Restoration of Rights and Remedies...................................41
     SECTION 5.10.     Rights and Remedies Cumulative.......................................41
     SECTION 5.11.     Delay or Omission Not a Waiver.......................................42
     SECTION 5.12.     Control by Controlling Noteholders...................................42
     SECTION 5.13      Waiver of Past Defaults..............................................42
     SECTION 5.14.     Undertaking for Costs................................................43
     SECTION 5.15.     Waiver of Stay or Extension Laws.....................................43
     SECTION 5.16.     Action on Notes......................................................43
     SECTION 5.17.     Performance and Enforcement of Certain Obligations...................43

ARTICLE VI    THE TRUSTEE...................................................................45
     SECTION 6.01.     Duties of Trustee....................................................45
     SECTION 6.02.     Rights of Trustee....................................................47
     SECTION 6.03.     Individual Rights of Trustee.........................................48
     SECTION 6.04.     Trustee's Disclaimer.................................................49
     SECTION 6.05.     Notice of Defaults...................................................49
     SECTION 6.06.     Reports by Trustee to Holders........................................49
     SECTION 6.07.     Compensation and Indemnity...........................................49
</TABLE>

                                     - ii -
<PAGE>   5

<TABLE>
<S>                                                                                       <C>
     SECTION 6.08.     Replacement of Trustee...............................................50
     SECTION 6.09.     Successor Trustee by Merger..........................................51
     SECTION 6.10.     Appointment of Co-Trustee or Separate Trustee........................51
     SECTION 6.11.     Eligibility; Disqualification........................................53
     SECTION 6.12.     Preferential Collection of Claims Against Issuer.....................53

ARTICLE VII   NOTEHOLDERS' LISTS AND REPORTS................................................53
     SECTION 7.01.     Issuer To Furnish Trustee Names and Addresses to
                       Noteholders..........................................................53
     SECTION 7.02.     Preservation of Information; Communications to Noteholders...........53
     SECTION 7.03.     Reports by Issuer....................................................54
     SECTION 7.04.     Reports by Trustee...................................................54

ARTICLE VIII  ACCOUNTS, DISBURSEMENTS AND RELEASES..........................................55
     SECTION 8.01.     Collection of Money..................................................55
     SECTION 8.02.     Trust Accounts.......................................................55
     SECTION 8.03.     General Provisions Regarding Accounts................................56

ARTICLE IX    SUPPLEMENTAL INDENTURES.......................................................57
     SECTION 9.01.     Supplemental Indentures Without Consent of Noteholders...............57
     SECTION 9.02.     Supplemental Indentures With Consent of Noteholders..................58
     SECTION 9.03.     Execution of Supplemental Indentures.................................60
     SECTION 9.04.     Effect of Supplemental Indenture.....................................60
     SECTION 9.05.     Conformity With Trust Indenture Act..................................60
     SECTION 9.06.     Reference in Notes to Supplemental Indentures........................60

ARTICLE X     REDEMPTION OF NOTES...........................................................61
     SECTION 10.01.    Redemption.  ........................................................61
     SECTION 10.02.    Form of Redemption Notice............................................61
     SECTION 10.03.    Notes Payable on Redemption Date.....................................62

ARTICLE XI    MISCELLANEOUS.................................................................62
     SECTION 11.01.    Compliance Certificates and Opinions, etc............................62
     SECTION 11.02.    Form of Documents Delivered to Trustee...............................64
     SECTION 11.03.    Acts of Noteholders..................................................65
     SECTION 11.04.    Notices, etc., to Trustee, Issuer and Rating Agencies................65
     SECTION 11.05     Notices to Noteholders; Waiver.......................................66
     SECTION 11.06.    Alternate Payment and Notice Provisions..............................66
     SECTION 11.07.    Conflict with Trust Indenture Act....................................67
     SECTION 11.08.    Effect of Headings and Table of Contents.............................67
</TABLE>

                                     - iii -
<PAGE>   6

<TABLE>
<S>                                                                                       <C>
     SECTION 11.09.    Successors and Assigns...............................................67
     SECTION 11.10.    Severability.........................................................67
     SECTION 11.11.    Benefits of Indenture................................................67
     SECTION 11.12.    Legal Holidays.......................................................67
     SECTION 11.13.    Governing Law........................................................67
     SECTION 11.14.    Counterparts.........................................................68
     SECTION 11.15.    Recording of Indenture...............................................68
     SECTION 11.16.    Trust Obligation.....................................................68
     SECTION 11.17.    No Petition..........................................................68
     SECTION 11.18.    Inspection...........................................................68
     SECTION 11.19.    Limitation of Liability..............................................69
     SECTION 11.20.    No Substantive Review of Compliance Documents........................69
</TABLE>

<TABLE>
<S>                <C>     <C>
Exhibit A          --      Schedule of Receivables
Exhibit B          --      Form of Depository Agreement
Exhibit C-1        --      Form of Class A-1 Note
Exhibit C-2        --      Form of Class A-2 Note
Exhibit C-3        --      Form of Class A-3 Note
Exhibit C-4        --      Form of Class M Note
Exhibit C-5        --      Form of Class B Note
Exhibit D          --      Letter Agreement Between AFL and the Trustee
</TABLE>

                                     - iv -
<PAGE>   7

                  INDENTURE, dated as of June 1, 2000, between ASSOCIATES
AUTOMOBILE RECEIVABLES TRUST 2000-1, a Delaware business trust (the "Issuer"),
and BANK ONE, NATIONAL ASSOCIATION, as trustee (the "Trustee") and not in its
individual capacity.

                  Each party agrees as follows for the benefit of the other
party and for the equal and ratable benefit of the Holders of the Issuer's
6.854% Class A-1 Automobile Receivables-Backed Notes (the "Class A-1 Notes"),
7.15% Class A-2 Automobile Receivables-Backed Notes (the "Class A-2 Notes"),
7.30% Class A-3 Automobile Receivables-Backed Notes (the "Class A-3 Notes"),
7.51% Class M Automobile Receivables-Backed Notes (the "Class M Notes") and
7.83% Class B Automobile Receivables-Backed Notes (the "Class B Notes" and,
together with the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and
the Class M Notes, the "Notes"):

                  As security for the payment and performance by the Issuer of
its obligations under this Indenture and the Notes, the Issuer has agreed to
assign the Collateral (as defined below) as collateral to the Trustee on behalf
of the Noteholders.

                                 GRANTING CLAUSE

                  The Issuer hereby Grants to the Trustee at the Closing Date,
on behalf of and for the benefit of the Noteholders to secure the performance of
the Secured Obligations, all of the Issuer's right, title and interest now owned
or hereafter acquired in and to (a) the Receivables and all moneys paid or
payable thereon or in respect thereof after the Cutoff Date (including amounts
due on or before the Cutoff Date but received by AFL, the Seller or the Issuer
after the Cutoff Date); (b) an assignment of the security interests of AFL in
the Financed Vehicles; (c) the Insurance Policies and any proceeds from any
Insurance Policies relating to the Receivables, the Obligors or the Financed
Vehicles, including rebates of premiums and all Collateral Insurance relating to
the Receivables; (d) an assignment of the rights of AFL or the Seller against
Dealers with respect to the Receivables under the Dealer Agreements and the
Dealer Assignments, (e) all items contained in the Receivable Files and any and
all other documents that AFL keeps on file in accordance with its customary
procedures relating to the Receivables, the Obligors or the Financed Vehicles,
(f) an assignment of the rights of the Seller under the Purchase Agreement, (g)
property (including the right to receive future Liquidation Proceeds) that
secures a Receivable and that has been acquired by or on behalf of the Trust
pursuant to liquidation of such Receivable, (h) the Trust Accounts and all funds
on deposit therein from time to time, and in all investments and proceeds
thereof (including all income thereon), (i) the Purchase Agreement, including
the right assigned to the Issuer to cause AFL to repurchase Receivables from the
Seller under certain circumstances, (j) the Sale and Servicing Agreement
(including all rights of the Seller under the Purchase Agreement assigned to the
Issuer pursuant to the Sale and Servicing Agreement), and (k) 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

<PAGE>   8

liquid property, all cash proceeds, accounts, accounts receivable, notes,
drafts, acceptances, chattel paper, checks, deposit accounts, insurance
proceeds, condemnation awards, rights to payment of any and every kind and other
forms of obligations and receivables, instruments and other property which at
any time constitute all or part of or are included in the proceeds of any of the
foregoing (collectively, the "Collateral").

                  The Trustee on behalf of the Holders of the Notes acknowledges
such Grant. The Trustee on behalf of the Holders of the Notes accepts the trusts
under this Indenture in accordance with the provisions of this Indenture and
agrees to perform its duties required in this Indenture and the Related
Documents to which it is a party in accordance with their terms to the best of
its ability to the end that the interests of the Holders of the Notes may be
adequately and effectively protected.

                                    ARTICLE I

                   DEFINITIONS AND INCORPORATION BY REFERENCE

                  SECTION 1.01. Definitions.

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

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

                  "Administrator" has the meaning specified therefor in the
Trust Agreement.

                  "Affiliate" means, with respect to any specified Person, any
other Person controlling or controlled by or under common control with such
specified Person. For the purposes of this definition, "control" when used with
respect to any specified Person means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership
of voting securities, by contract or otherwise; and the terms "controlling" and
"controlled" have meanings correlative to the foregoing.

                  "Authorized Officer" means, with respect to the Issuer, any
officer or authorized signatory of the Owner Trustee who is authorized to act
for the Owner Trustee in matters relating to the Issuer and who is identified on
the list of Authorized Officers delivered by the Owner Trustee to the Trustee on
the Closing Date (as such list may be modified or supplemented from time to time
thereafter).

                  "Book-Entry Note" means any Note registered in the name of the
Depository or its nominee, ownership of which is reflected on the books of the
Depository or on the books of a person

                                      - 2 -
<PAGE>   9

maintaining an account with such Depository (directly or as an indirect
participant in accordance with the rules of such Depository).

                  "Business Day" means any day other than a Saturday, Sunday,
legal holiday or other day on which commercial banking institutions in Dallas,
Texas; Chicago, Illinois; New York, New York; Wilmington, Delaware or any other
location of any successor Servicer, successor Owner Trustee or successor Trustee
are authorized or obligated by law, executive order or governmental decree to
remain closed.

                  "Certificate of Trust" means the Certificate of Trust of the
Issuer substantially in the form of Exhibit A to the Trust Agreement.

                  "Class A-1 Interest Rate" means 6.854% per annum (computed on
the basis of actual days elapsed in a year of 360 days).

                  "Class A-2 Interest Rate" means 7.15% per annum (computed on
the basis of a 360-day year of twelve 30-day months).

                  "Class A-3 Interest Rate" means 7.30% per annum (computed on
the basis of a 360-day year of twelve 30-day months).

                  "Class M Interest Rate" means 7.51% per annum (computed on the
basis of a 360-day year of twelve 30-day months).

                  "Class B Interest Rate" means 7.83% per annum (computed on the
basis of a 360-day year of twelve 30-day months).

                  "Class A-1 Notes" means the 6.854% Class A-1 Automobile
Receivables-Backed Notes substantially in the form of Exhibit C-1.

                  "Class A-2 Notes" means the 7.15% Class A-2 Automobile
Receivables-Backed Notes substantially in the form of Exhibit C-2.

                  "Class A-3 Notes" means the 7.30% Class A-3 Automobile
Receivables-Backed Notes substantially in the form of Exhibit C-3.

                  "Class M Notes" means the 7.51% Class M Automobile
Receivables-Backed Notes substantially in the form of Exhibit C-4.

                                      - 3 -
<PAGE>   10
                  "Class B Notes" means the 7.83% Class B Automobile
Receivables-Backed Notes substantially in the form of Exhibit C-5.

                  "Closing Date" means June 22, 2000.

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

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

                  "Controlling Noteholders" means the holders of (i) a majority
in outstanding principal amount of Class A Notes, or (ii) if all of the Class A
Notes have been paid in full, a majority in outstanding principal amount of the
Class M Notes, or (iii) if all of the Class A Notes and Class M Notes have been
paid in full, a majority in outstanding principal amount of the Class B Notes.

                  "Corporate Trust Office" means the principal office of the
Trustee at which at any particular time its corporate trust business shall be
administered which office at date of the execution of this Agreement is located
at 1 Bank One Plaza, Suite IL1-0126, Chicago, Illinois 60670-0126, Attn: Global
Corporate Trust Services, except that for purposes of Section 3.02 hereof such
office is located at 14 Wall Street, 8th Floor, New York, New York 10005; or at
such other address as the Trustee may designate from time to time by notice to
the Noteholders and the Issuer, or the principal corporate trust office of any
successor Trustee (the address of which the successor Trustee will notify the
Noteholders, the Security Insurer and the Issuer).

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

                  "Definitive Notes" has the meaning specified in Section 2.09.

                  "Depository" means the initial Depository, The Depository
Trust Company, the nominee of which is Cede & Co., as the registered Holder of
$207,000,000 in aggregate principal amount of the Class A-1 Notes, $92,000,000
aggregate principal amount of the Class A-2 Notes, $301,000,000 in aggregate
principal amount of the Class A-3 Notes, $64,583,000 in aggregate principal
amount of the Class M Notes and $85,417,000 in aggregate principal amount of the
Class B Notes as of the Closing Date, and any permitted successor depository.
The Depository shall at all times be a "clearing corporation" as defined in
Section 8-102(3) of the New York UCC.

                  "Depository Agreement" means the agreement among the Issuer,
the Trustee and The Depository Trust Company, as the initial Depository, dated
as of the Closing Date, relating to the Notes substantially in the form of
Exhibit B.

                                      - 4 -
<PAGE>   11

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

                  "Event of Default" has the meaning specified in Section 5.01.

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

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

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

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

                  "Indebtedness" means, with respect to any Person at any time,
(a) indebtedness or liability of such Person for borrowed money whether
evidenced by bonds, debentures, notes or other instruments, or for the deferred
purchase price of property or services (including trade obligations); (b)
obligations of such Person as lessee under leases which should have been or
should be, in accordance with generally accepted accounting principles, recorded
as capital leases; (c) current liabilities of such Person in respect of unfunded
vested benefits under plans covered by Title IV of ERISA; (d) obligations issued
for or liabilities incurred on the account of such Person; (e) obligations or
liabilities of such Person arising under acceptance facilities; (f) obligations
of such Person under any guarantees, endorsements (other than for collection or
deposit in the ordinary course of business) and other contingent obligations to
purchase, to provide funds for payment, to supply funds to invest in any Person
or otherwise to assure a creditor against loss; (g) obligations of such Person
secured by any lien on property or assets of such Person, whether or not the
obligations have been assumed by such Person; or (h) obligations of such Person
under any interest rate or currency exchange agreement.

                                      - 5 -
<PAGE>   12

                  "Indenture" means this Indenture as amended or supplemented
from time to time.

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

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

                  "Interest Rate" means the Class A-1 Interest Rate, the Class
A-2 Interest Rate, the Class A-3 Interest Rate, the Class M Interest Rate and
the Class B Interest Rate, as applicable.

                  "Issuer" means the party named as such in this Indenture until
a successor replaces it and, thereafter, means the successor and, for purposes
of any provision contained herein and required by the TIA, each other obligor on
the Notes.

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

                  "Letter Agreement" has the meaning specified in Section 6.07.

                  "Note" means a Class A-1 Note, Class A-2 Note, Class A-3 Note,
Class M Note or Class B Note, as applicable.

                  "Note Owner" means, with respect to a Book-Entry Note, the
Person who is the owner of such Book-Entry Note, as reflected on the books of
the Depository, or on the books of a Person maintaining an account with such
Depository (directly as a Depository participant or as an indirect participant,
in each case in accordance with the rules of such Depository) and with respect
to any Definitive Notes, the Holder.

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

                                      - 6 -
<PAGE>   13

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

                  "Opinion of Counsel" means one or more written opinions of
counsel who may, except as otherwise expressly provided in this Indenture, be
employees of or counsel to the Issuer and who shall be satisfactory to the
Trustee and which shall comply with any applicable requirements of Section
11.01, and shall be in form and substance satisfactory to the Trustee. Such
Opinion of Counsel shall not be at the expense of the Trustee.

                  "Outstanding" means, as of the date of determination, all
Notes theretofore authenticated and delivered under this Indenture except:

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

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

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

                  "Outstanding Amount" means the aggregate principal amount of
all Notes, or class of Notes, as applicable, Outstanding at the date of
determination.

                  "Owner Trustee" means Wilmington Trust Company, not in its
individual capacity but solely as Owner Trustee under the Trust Agreement, or
any successor trustee under the Trust Agreement.

                  "Paying Agent" shall initially mean the Trustee or, with
respect to any successor to the Trustee, any other Person that meets the
eligibility standards for the Trustee specified in Section 6.11 and is
authorized by the Issuer to make the distributions from the Note Interest
Distribution Account and the Principal Distribution Account, including payment
of principal of or interest on the Notes on behalf of the Issuer.

                                      - 7 -
<PAGE>   14

                  "Payment Date" means a Distribution Date.

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

                  "Predecessor Note" means, with respect to any particular Note,
every previous Note evidencing all or a portion of the same debt as that
evidenced by such particular Note; and, for the purpose of this definition, any
Note authenticated and delivered under Section 2.05 in lieu of a mutilated,
lost, destroyed or stolen Note shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Note.

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

                  "Rating Agency" means each of Moody's and Standard & Poor's,
so long as such Persons maintain a rating on the Notes; and if either Moody's or
Standard & Poor's no longer maintains a rating on the Notes, such other
nationally recognized statistical rating organization selected by the Seller.

                  "Rating Agency Condition" means, with respect to any action,
that each Rating Agency shall have been given 10 days' prior notice thereof and
that each of the Rating Agencies shall have notified the Seller, the Servicer,
the Trustee, the Owner Trustee and the Issuer in writing that such action will
not result in a reduction or withdrawal of the then current rating of the Notes.

                  "Record Date" means, with respect to a Payment Date or
Redemption Date, the close of business on the last Business Day immediately
preceding such Payment Date or Redemption Date.

                  "Redemption Date" means, with respect to a redemption of the
Notes pursuant to Section 10.01, the Payment Date specified by the Servicer or
the Issuer pursuant to Section 10.01.

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

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

                                      - 8 -
<PAGE>   15

                  "Related Documents" means the Trust Agreement, the Notes, the
Certificates, the Purchase Agreement, the Sale and Servicing Agreement, the
Administration Agreement, the Custodian Agreement, the Lockbox Agreement, the
Depository Agreement, the letter agreement between Associates Corporation of
North America and the underwriters of the Notes and the Underwriting Agreement
among the Seller, AFL and the underwriters of the Notes. The Related Documents
executed by any party are referred to herein as "such party's Related
Documents," "its Related Documents" or by a similar expression.

                  "Responsible Officer" means, with respect to the Trustee, any
officer assigned to the Corporate Trust Office (or any successor thereto),
including any Vice President, Assistant Vice President, Trust Officer, any
Assistant Secretary, any trust officer or any other officer of the Trustee
customarily performing functions similar to those performed by any of the above
designated officers and having direct responsibility for the administration of
the this Indenture and Related Documents, and any other officer to whom a matter
may be referred arising hereunder. When used with respect to any other Person
that is not an individual, the President, any Vice President or Assistant Vice
President or the Controller of such Person, or any other officer or employee
having similar functions.

                  "Sale and Servicing Agreement" means the Sale and Servicing
Agreement, dated as of June 1, 2000, among the Issuer, the Seller and the
Servicer.

                  "Schedule of Receivables" means the listing of the Receivables
set forth in Exhibit A.

                  "Secured Obligations" means all amounts and obligations which
the Issuer may at any time owe to or on behalf of the Trustee for the benefit of
the Noteholders under this Indenture or the Notes.

                  "State" means any one of the 50 states of the United States of
America or the District of Columbia.

                  "Termination Date" means the date on which the Trustee shall
have received payment and performance of all Secured Obligations.

                  "Trust Estate" means all money, instruments, rights and other
property that are subject or intended to be subject to the Lien and security
interest of this Indenture for the benefit of the Noteholders, including all
proceeds thereof.

                  "Trust Indenture Act" or "TIA" means the Trust Indenture Act
of 1939, as amended, as in force on the date hereof, unless otherwise
specifically provided. The term "TIA" shall specifically include any amendments
or revisions to the Trust Indenture Act of 1939 which may be enacted from time
to time.

                                      - 9 -
<PAGE>   16

                  "Trustee" means Bank One, National Association, a national
banking association, as Trustee under this Indenture, or any successor Trustee
under this Indenture.

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

                  (b) Except as otherwise specified herein or as the context may
otherwise require, the following terms have the respective meanings set forth in
the Sale and Servicing Agreement as in effect on the Closing Date for all
purposes of this Indenture, and the definitions of such terms are equally
applicable both to the singular and plural forms of such terms:

<TABLE>
<CAPTION>
                                                                                      Section of Sale and
Term                                                                                  Servicing Agreement
----                                                                                  -------------------

<S>                                                                                   <C>
AFL...............................................................................        Section 1.1
Aggregate Principal Balance.......................................................        Section 1.1
APR...............................................................................        Section 1.1
Available Funds...................................................................        Section 1.1
Class A-1 Final Scheduled Distribution Date.......................................        Section 1.1
Class A-2 Final Scheduled Distribution Date.......................................        Section 1.1
Class A-3 Final Scheduled Distribution Date.......................................        Section 1.1
Class M Final Scheduled Distribution Date.........................................        Section 1.1
Class B Final Scheduled Distribution Date.........................................        Section 1.1
Collateral Agent..................................................................        Section 1.1
Collateral Insurance..............................................................        Section 1.1
Collection Account................................................................        Section 1.1
Controlling Noteholders...........................................................        Section 1.1
Custodian.........................................................................        Section 1.1
Dealer............................................................................        Section 1.1
Dealer Agreement..................................................................        Section 1.1
Dealer Assignment.................................................................        Section 1.1
Distribution Date.................................................................        Section 1.1
Draw Date.........................................................................        Section 1.1
Eligible Account..................................................................        Section 1.1
Eligible Investments..............................................................        Section 1.1
Financed Vehicle..................................................................        Section 1.1
Liquidation Proceeds..............................................................        Section 1.1
Lockbox Bank......................................................................        Section 1.1
Monthly Period....................................................................        Section 1.1
Moody's...........................................................................        Section 1.1
</TABLE>

                                     - 10 -
<PAGE>   17

<TABLE>
<S>                                                                                               <C>
Note Interest Distribution Account................................................        Section 1.1
Obligor...........................................................................        Section 1.1
Principal Distribution Account....................................................        Section 1.1
Purchase Agreement................................................................        Section 1.1
Purchased Receivable..............................................................        Section 1.1
Receivable........................................................................        Section 1.1
Reserve Account...................................................................        Section 1.1
Seller............................................................................        Section 1.1
Servicer..........................................................................        Section 1.1
Servicer Termination Event........................................................        Section 1.1
Standard & Poor's.................................................................        Section 1.1
Trust Accounts....................................................................        Section 1.1
Trust Agreement...................................................................        Section 1.1
</TABLE>

                  SECTION 1.02. Incorporation by Reference of Trust Indenture
Act. Whenever this Indenture refers to a provision of the TIA, the 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.

         "indenture security holder" means a Noteholder.

         "indenture to be qualified" means this Indenture.

         "indenture trustee" or "institutional trustee" means the Trustee.

         "obligor" on the indenture securities means the Issuer and any other
         obligor on the indenture securities.

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

                  SECTION 1.03. Rules of Construction. Unless otherwise
         specified:

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

                                     - 11 -
<PAGE>   18

                  (ii) an accounting term not otherwise defined has the meaning
assigned to it in accordance with generally accepted accounting principles as in
effect from time to time;

                  (iii) "or" is not exclusive;

                  (iv) "including" means including without limitation;

                  (v) words in the singular include the plural and words in the
plural include the singular; and

                  (vi) references to Sections, Subsections, Schedules and
Exhibits shall refer to such portions of this Indenture.

                                   ARTICLE II

                                    THE NOTES

                  SECTION 2.01. Form. The Class A-1 Notes, the Class A-2 Notes,
the Class A-3 Notes, the Class M Notes and the Class B Notes in each case
together with the Trustee's certificate of authentication, shall be in
substantially the forms set forth in Exhibits C-1, C-2, C-3, C-4 and C-5,
respectively, with such appropriate insertions, omissions, substitutions and
other variations as are required or permitted by this Indenture and may have
such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may, consistently herewith, be determined by the
officers executing 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.

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

                  Each Note shall be dated the date of its authentication. The
terms of the Notes set forth in Exhibits C-1, C-2, C-3, C-4 and C-5, are part of
the terms of this Indenture.

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

                  Notes bearing the manual or facsimile signature of individuals
who were at any time Authorized Officers of the Issuer shall bind the Issuer,
notwithstanding that such individuals or any of

                                     - 12 -
<PAGE>   19
them have ceased to hold such offices prior to the authentication and delivery
of such Notes or did not hold such offices at the date of such Notes.

                  The Trustee shall upon receipt of the Issuer Order
authenticate and deliver Class A-1 Notes for original issue in an aggregate
principal amount of $207,000,000 Class A-2 Notes for original issue in an
aggregate principal amount of $92,000,000, Class A-3 Notes for original issue in
an aggregate principal amount of $301,000,000, Class M Notes for original issue
in an aggregate principal amount of $64,583,000 and Class B Notes for original
issue in an aggregate principal amount of $85,417,000. The aggregate principal
amount of the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, Class M
Notes and Class B Notes outstanding at any time may not exceed that amount
except as provided in Section 2.05.

                  Each Note shall be dated the date of its authentication. The
Notes shall be issuable as registered Notes in the minimum denomination of
$1,000 and in integral multiples thereof.

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

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

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

                  SECTION 2.04. Registration; Registration of Transfer and
Exchange. The Issuer shall cause to be kept a register (the "Note Register") in
which, subject to such reasonable regulations as it may prescribe, the Issuer
shall provide for the registration of Notes and the registration of transfers of

                                     - 13 -
<PAGE>   20
Notes. The Trustee shall be "Note Registrar" for the purpose of registering
Notes and transfers of Notes as herein provided. Upon any resignation of any
Note Registrar, the Issuer shall promptly appoint a successor or, if it elects
not to make such an appointment, assume the duties of Note Registrar.

                  If a Person other than the Trustee is appointed by the Issuer
as Note Registrar, the Issuer will give the Trustee prompt written notice of the
appointment of such Note Registrar and of the location, and any change in the
location, of the Note Register, and the Trustee shall have the right to inspect
the Note Register at all reasonable times and to obtain copies thereof, and the
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 Holders of the Notes and the principal amounts and number of such Notes.

                  Upon surrender for registration of transfer of any Note at the
office or agency of the Issuer to be maintained as provided in Section 3.02, the
Issuer shall execute, and the Trustee shall authenticate and the Noteholder
shall obtain from the 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.

                  At the option of the Holder, Notes may be exchanged for other
Notes in any authorized denominations, of a like aggregate principal amount,
upon surrender of the Notes to be exchanged at such office or agency. Whenever
any Notes are so surrendered for exchange, the Issuer shall execute, and the
Trustee shall authenticate and the Noteholder shall obtain from the Trustee, the
Notes which the Noteholder making the exchange is entitled to receive.

                  All Notes issued upon any registration of transfer or exchange
of Notes shall be the valid obligations of the Issuer, evidencing the same debt,
and entitled to the same benefits under this Indenture, as the Notes surrendered
upon such registration of transfer or exchange.

                  Every Note presented or surrendered for registration of
transfer or exchange shall be duly endorsed by, or be accompanied by a written
instrument of transfer in form satisfactory to the Trustee 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 is located, or by a member firm of a national securities
exchange, and such other documents as the Trustee may require.

                  No service charge shall be made to a Holder for any
registration of transfer or exchange of Notes, but the Issuer or the 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 Section 2.03 or 9.06 not
involving any transfer.

                                     - 14 -
<PAGE>   21

                  The preceding provisions of this Section 2.04 notwithstanding,
the Issuer shall not be required to make and the Note Registrar need not
register transfers or exchanges of Notes selected for redemption or of any Note
for a period of 15 days preceding the due date for any payment with respect to
the Note.

                  SECTION 2.05. Mutilated, Destroyed, Lost or Stolen Notes. If
(i) any mutilated Note is surrendered to the Trustee, or the Trustee receives
evidence to its satisfaction of the destruction, loss or theft of any Note, and
(ii) there is delivered to the Trustee such security or indemnity as may be
required by them to hold the Issuer and the Trustee harmless, then, in the
absence of notice to the Issuer, the Note Registrar or the Trustee that such
Note has been acquired by a bona fide purchaser, the Issuer shall execute and
upon its request the Trustee shall authenticate and deliver, in exchange for or
in lieu of any such mutilated, destroyed, lost or stolen Note, a replacement
Note; 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 pay such destroyed, lost or stolen Note when so
due or payable or upon the Redemption Date without surrender thereof. If, after
the delivery of such replacement Note or payment of a destroyed, lost or stolen
Note pursuant to the proviso to the preceding sentence, 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 Trustee shall be entitled to
recover such replacement Note (or such payment) from the Person to whom it was
delivered or any Person taking such replacement Note from such Person to whom
such replacement Note was delivered or any assignee of such Person, except a
bona fide purchaser, and shall be entitled to recover upon the security or
indemnity provided therefor to the extent of any loss, damage, cost or expense
incurred by the Issuer or the Trustee in connection therewith.

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

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

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

                                     - 15 -
<PAGE>   22

                  SECTION 2.06. Person Deemed Owner. Prior to due presentment
for registration of transfer of any Note, the Issuer, the Trustee and any agent
of the Issuer or the Trustee may treat the Person in whose name any Note is
registered (as of the day of determination) as the owner of such Note for the
purpose of receiving payments of principal of and interest, if any, on such Note
and for all other purposes whatsoever, whether or not such Note be overdue, and
none of the Issuer, the Trustee nor any agent of the Issuer or the Trustee shall
be affected by notice to the contrary.

                  SECTION 2.07.  Payment of Principal and Interest

                  (a) The Notes shall accrue interest as provided in the forms
of the Class A-1 Note, the Class A-2 Note, the Class A-3 Note, the Class M Note
and the Class B Note set forth in Exhibits C-1, C-2, C-3, C-4 and C-5,
respectively, and such interest shall be payable on each Payment Date as
specified therein, subject to Section 3.01. Any installment of interest or
principal, if any, payable on any Note which is punctually paid or duly provided
for by the Issuer on the applicable Payment Date shall be paid to the Person in
whose name such Note (or one or more Predecessor Notes) is registered on the
Record Date, by check mailed first-class, postage prepaid to such Person's
address as it appears on the Note Register on such Record Date, except that,
unless Definitive Notes have been issued pursuant to Section 2.11, with respect
to Notes registered on the Record Date in the name of the nominee of the
Depository, payment will be made by wire transfer in immediately available funds
to the account designated by such nominee and except for (i) the final
installment of principal payable with respect to such Note on a Payment Date and
(ii) the Redemption Price for any Note called for redemption pursuant to Section
10.01, which shall be payable as provided below. The funds represented by any
such checks returned undelivered shall be held in accordance with Section 3.03.

                  (b) The principal of each Note shall be payable in
installments on each Payment Date as provided in the forms of the Class A-1
Note, the Class A-2 Note, the Class A-3 Note, the Class M Note and the Class B
Note set forth in Exhibits C-1, C-2, C-3, C-4 and C-5, respectively.
Notwithstanding the foregoing, the entire unpaid principal amount of the Notes
shall be due and payable, if not previously paid, on the date on which an Event
of Default shall have occurred and be continuing if the Trustee or the
Controlling Noteholders have declared the Notes to be immediately due and
payable in the manner described in Section 5.02 hereof. All principal payments
on a class of Notes shall be made pro rata to the Noteholders of such class
entitled thereto. The Trustee shall notify the Person in whose name a Note is
registered at the close of business on the Record Date preceding the Payment
Date for which the Trustee has received notice from the Issuer that the Issuer
expects that the final installment of principal of and interest on such Note
will be paid. Such notice shall be mailed no later than five days prior to such
final Payment Date and shall specify that such final installment will be payable
only upon presentation and surrender of such Note and shall specify the place
where such Note may be presented and surrendered for payment of such
installment. Notices in connection with redemptions of Notes shall be mailed to
Noteholders as provided in Section 10.02.

                                     - 16 -
<PAGE>   23

                  SECTION 2.08. Cancellation. All Notes surrendered for payment,
registration of transfer, exchange or redemption shall, if surrendered to any
Person other than the Trustee, be delivered to the Trustee and shall be promptly
canceled by the Trustee. The Issuer may at any time deliver to the 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 Trustee. No Notes shall be
authenticated in lieu of or in exchange for any Notes canceled as provided in
this Section, except as expressly permitted by this Indenture. All canceled
Notes may be held or disposed of by the Trustee in accordance with its standard
retention or disposal policy as in effect at the time unless the Issuer shall
direct by an Issuer Order that they be destroyed or returned to it, provided
that such Issuer Order is timely and the Notes have not been previously disposed
of by the Trustee.

                  SECTION 2.09. Book-Entry Notes. The Notes, upon original
issuance, will be issued in the form of a typewritten Note or Notes representing
the Book-Entry Notes, to be delivered to The Depository Trust Company, the
initial Depository, by, or on behalf of, the Issuer. Such Note shall initially
be registered on the Note Register in the name of Cede & Co., the nominee of the
initial Depository, and no Note Owner will receive a Definitive Note
representing such Note Owner's interest in such Note, except as provided in
Section 2.11. Unless and until definitive, fully registered Notes (the
"Definitive Notes") have been issued to Note Owners pursuant to Section 2.11:

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

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

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

                  (iv) the rights of Note Owners shall be exercised only through
         the Depository and shall be limited to those established by law and
         agreements between such Note Owners and the Depository and/or the
         Depository Participants. Pursuant to the Depository Agreement, unless
         and until Definitive Notes are issued pursuant to Section 2.11, the
         initial Depository will make book-entry transfers among the Depository
         Participants and receive and transmit payments of principal of and
         interest on the Notes to such Depository Participants;

                  (v) whenever this Indenture requires or permits actions to be
         taken based upon instructions or directions of Holders of Notes
         evidencing a specified percentage of the Outstanding Amount of the
         Notes, the Depository shall be deemed to represent such

                                     - 17 -
<PAGE>   24

         percentage only to the extent that it has received instructions to such
         effect from Note Owners and/or Depository Participants owning or
         representing, respectively, such required percentage of the beneficial
         interest in the Notes and has delivered such instructions to the
         Trustee; and

                  (vi) Note Owners may receive copies of any reports sent to
         Noteholders pursuant to this Indenture, upon written request, together
         with a certification that they are Note Owners and payment of
         reproduction and postage expenses associated with the distribution of
         such reports, from the Trustee at the Corporate Trust Office.

                  SECTION 2.10. Notices to Depository. 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 2.11, the Trustee shall give all such notices and communications
specified herein to be given to Holders of the Notes to the Depository and shall
have no obligation to the Note Owners.

                  SECTION 2.11. Definitive Notes. If (i) the Administrator
advises the Trustee in writing that the Depository is no longer willing or able
properly to discharge its responsibilities with respect to the Notes, and the
Administrator is unable to locate a qualified successor, (ii) the Administrator
at its option advises the Trustee in writing that it elects to terminate the
book-entry system through the Depository or (iii) after the occurrence of an
Event of Default, the Controlling Noteholders advise the Depository in writing
that the continuation of a book-entry system through the Depository is no longer
in the best interests of the Note Owners, then the Depository shall notify all
Note Owners and the 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 Trustee of the Note or Notes representing the Book-Entry Notes
by the Depository, accompanied by registration instructions, the Issuer shall
execute and the Trustee shall authenticate the Definitive Notes in accordance
with the instructions of the Depository. None of the Issuer, the Note Registrar
or the 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 Trustee shall recognize
the Holders of the Definitive Notes as Noteholders.

                                   ARTICLE III

                                    COVENANTS

                  SECTION 3.01. Payment of Principal and Interest. The Issuer
will duly and punctually pay the principal and interest, on the Notes in
accordance with the terms of the Notes and this Indenture. Without limiting the
foregoing, the Issuer will cause to be distributed all amounts on deposit in the
Note Interest Distribution Account and the Principal Distribution Account on a
Payment Date in accordance with Sections 8.02(b) and 8.02(c). Amounts properly
withheld under the Code by

                                     - 18 -
<PAGE>   25
any Person from a payment to any Noteholder of interest and/or principal shall
be considered as having been paid by the Issuer to such Noteholder for all
purposes of this Indenture.

                  SECTION 3.02. Maintenance of Office or Agency. The Issuer will
maintain in the City of New York, an office or agency where Notes may be
surrendered for registration of transfer or exchange, and where notices and
demands to or upon the Issuer in respect of the Notes and this Indenture may be
served. The Issuer hereby initially appoints the Trustee to serve as its agent
for the foregoing purposes. The Issuer will give prompt written notice to the
Trustee of the location, and of any change in the location, of any such office
or agency. If at any time the Issuer shall fail to maintain any such office or
agency or shall fail to furnish the Trustee with the address thereof, such
surrenders, notices and demands may be made or served at the Corporate Trust
Office, and the Issuer hereby appoints the Trustee as its agent to receive all
such surrenders, notices and demands.

                  SECTION 3.03. Money for Payments To Be Held in Trust. As
provided in Section 8.02, all payments of amounts due and payable with respect
to any Notes that are to be made from amounts withdrawn from the Note Interest
Distribution Account and the Principal Distribution Account pursuant to Sections
8.02(b) and 8.02(c) shall be made on behalf of the Issuer by the Trustee or by
another Paying Agent in accordance with written instructions from the Issuer
upon which the Trustee may rely, and no amounts so withdrawn from the Note
Interest Distribution Account and the Principal Distribution Account for
payments of Notes shall be paid over to the Issuer.

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

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

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

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

                                     - 19 -
<PAGE>   26

                  (iii) at any time during the continuance of any such default,
         upon the written request of the Trustee, forthwith pay to the Trustee
         all sums so held in trust by such Paying Agent;

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

                  (v) comply with all requirements of the Code with respect to
         the withholding from any payments made by it on any Notes of any
         applicable withholding taxes imposed thereon and with respect to any
         applicable reporting requirements in connection therewith.

                  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 Trustee all sums held in trust by
such Paying Agent, such sums to be held by the 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 Trustee, such Paying Agent shall be released from all
further liability with respect to such money.

                  Subject to applicable laws with respect to escheat of funds,
any money held by the Trustee or any Paying Agent in trust for the payment of
any amount due with respect to any Note and remaining unclaimed for two years
after such amount has become due and payable shall be discharged from such trust
and upon Issuer Request shall be deposited by the Trustee in the Collection
Account; and the Holder of such Note shall thereafter, as an unsecured general
creditor, look only to the Issuer for payment thereof, and all liability of the
Trustee or such Paying Agent with respect to such trust money shall thereupon
cease; provided, however, that the Trustee or such Paying Agent, before being
required to make any such repayment, 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 will be repaid to or for the
account of the Issuer. The Trustee may also adopt and employ, at the expense of
the Issuer, any other reasonable means of notification of such repayment
(including, but not limited to, mailing notice of such repayment to Holders
whose Notes have been called but have not been surrendered for redemption or
whose right to or interest in moneys due and payable but not claimed is
determinable from the records of the Trustee or of any Paying Agent, at the last
address of record for each such Holder).

                  SECTION 3.04. Existence. The Issuer will 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 will keep in full effect its existence, rights
and franchises

                                     - 20 -
<PAGE>   27
under the laws of such other jurisdiction) and will obtain and preserve its
qualification to do business in each jurisdiction in which such qualification is
or shall be necessary to protect the validity and enforceability of this
Indenture, the Notes, the Collateral and each other instrument or agreement
included in the Trust Estate.

                  SECTION 3.05. Protection of Trust Estate. The Issuer intends
the security interest Granted pursuant to this Indenture in favor of the
Noteholders to be prior to all other liens in respect of the Trust Estate, and
the Issuer shall take all actions necessary to obtain and maintain, in favor of
the Trustee, for the benefit of the Noteholders, a first Lien on and a first
priority, perfected security interest in the Trust Estate. The Issuer will from
time to time execute and deliver all such supplements and amendments hereto and
all such financing statements, continuation statements, instruments of further
assurance and other instruments, all as prepared by the Servicer and delivered
to the Issuer, and will take such other action necessary or advisable to:

                  (i) grant more effectively all or any portion of the Trust
         Estate;

                  (ii) maintain or preserve the Lien and security interest (and
         the priority thereof) in favor of the Trustee for the benefit of the
         Noteholders created by this Indenture or carry out more effectively the
         purposes hereof;

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

                  (iv) enforce any of the Collateral;

                  (v) preserve and defend title to the Trust Estate and the
         rights of the Trustee in such Trust Estate against the claims of all
         persons and parties; or

                  (vi) pay all taxes or assessments levied or assessed upon the
         Trust Estate when due.

The Issuer hereby designates the Trustee its agent and attorney-in-fact to
execute any financing statement, continuation statement or other instrument
required by the Trustee pursuant to this Section; provided, however, that the
Servicer shall be responsible for preparing and filing any such financing
statement, continuation statement or other instrument.

                  SECTION 3.06. Opinions as to Trust Estate.

                  (a) On the Closing Date, the Issuer shall furnish to the
Trustee an Opinion of Counsel either stating that, in the opinion of such
counsel, such action has been taken with respect to

                                     - 21 -
<PAGE>   28
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 first priority lien and security interest in
favor of the Trustee, for the benefit of the Noteholders, 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 make such lien and
security interest effective.

                  (b) On or before April 30 in each calendar year, beginning in
2001, the Issuer shall furnish to the Trustee an Opinion of Counsel with respect
to each jurisdiction in which a Uniform Commercial Code financing statement has
been filed by the Issuer 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
first priority 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 such Lien and security interest. Such
Opinion of Counsel shall also describe the recording, filing, re-recording and
refiling of this Indenture, any indentures supplemental hereto and any other
requisite documents and the execution and filing of any financing statements and
continuation statements that will, in the opinion of such counsel, be required
to maintain the Lien and security interest of this Indenture until April 30 in
the following calendar year.

                  SECTION 3.07. Performance of Obligations; Servicing of
Receivables.

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

                  (b) The Issuer may contract with other Persons to assist it in
performing its duties under this Indenture, and any performance of such duties
by a Person identified to the Trustee in an Officer's Certificate of the Issuer
shall be deemed to be action taken by the Issuer. Initially, the Issuer has
contracted with the Servicer and the Administrator to assist the Issuer in
performing its duties under this Indenture. The Owner Trustee shall not be
responsible for the action or inaction of the Servicer or the Administrator.

                  (c) The Issuer will punctually perform and observe all of its
obligations and agreements contained in this Indenture, the Related Documents
and in the instruments and agreements included in the Trust Estate, including
but not limited to filing or causing to be filed all UCC financing

                                     - 22 -
<PAGE>   29
statements and continuation statements required to be filed by the terms of this
Indenture and the Sale and Servicing Agreement in accordance with and within the
time periods provided for herein and therein.

                  (d) If the Issuer shall have knowledge of the occurrence of a
Servicer Termination Event under the Sale and Servicing Agreement, the Issuer
shall promptly notify in writing the Trustee and the Rating Agencies thereof,
and shall specify in such notice the action, if any, the Issuer is taking with
respect of such Servicer Termination Event. If a Servicer Termination Event
shall arise from the failure of the Servicer to perform any of its duties or
obligations under the Sale and Servicing Agreement with respect to the
Receivables, the Issuer shall take all reasonable steps available to it to
remedy such failure.

                  (e) If the Issuer has given notice of termination to the
Servicer of the Servicer's rights and powers pursuant to Section 8.2 of the Sale
and Servicing Agreement, as promptly as possible thereafter, the Issuer shall
appoint a successor servicer in accordance with Section 8.3 of the Sale and
Servicing Agreement.

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

                  (g) The Issuer agrees that it will not waive timely
performance or observance by the Servicer, the Seller or AFL of their respective
duties under the Related Documents if the effect thereof would adversely affect
the Holders of the Notes.

                  (h) As promptly as possible after the giving of notice of
termination to the Servicer of the Servicer's rights and powers pursuant to
Section 8.1 of the Sale and Servicing Agreement, the Issuer shall appoint a
successor servicer (the "Successor Servicer"), and such Successor Servicer shall
accept its appointment by a written assumption in a form acceptable to the
Trustee. In the event that a Successor Servicer has not been appointed and
accepted its appointment at the time when the Servicer ceases to act as
Servicer, the Trustee without further action shall automatically be appointed
the Successor Servicer in accordance with Section 8.2 of the Sale and Servicing
Agreement. The Trustee may resign as the Servicer by giving written notice of
such resignation to the Issuer and in such event will be released from such
duties and obligations, such release not to be effective until the date a new
servicer enters into a servicing agreement with the Issuer as provided below.
Upon delivery of any such notice to the Issuer, the Issuer shall obtain a new
servicer as the Successor Servicer under the Sale and Servicing Agreement. Any
Successor Servicer other than the Trustee shall (i) be an Eligible Servicer and
(ii) enter into a servicing agreement with the Issuer having substantially the
same provisions as the provisions of the Sale and Servicing Agreement applicable
to the Servicer. If within 30 days

                                     - 23 -
<PAGE>   30
after the delivery of the notice referred to above, the Issuer shall not have
obtained such a new servicer, the Trustee may appoint, or may petition a court
of competent jurisdiction to appoint, a Successor Servicer. In connection with
any such appointment, the Trustee may make such arrangements for the
compensation of such successor as it and such successor shall agree, subject to
the limitations set forth below and in the S4ale and Servicing Agreement, and in
accordance with Section 8.2 of the Sale and Servicing Agreement, the Issuer
shall enter into an agreement with such successor for the servicing of the
Receivables (such agreement to be in form and substance satisfactory to the
Trustee). If the Trustee shall succeed to the Servicer's duties as servicer of
the Receivables as provided herein, it shall do so in its individual capacity
and not in its capacity as Trustee and accordingly, the provisions of Article VI
hereof shall be inapplicable to the Trustee in its duties as the successor to
the Servicer and the servicing of the Receivables. In case the Trustee shall
become successor to the Servicer under the Sale and Servicing Agreement, the
Trustee shall be entitled to appoint as Servicer any one of its Affiliates, or
delegate any of its responsibilities as Servicer to any Affiliate or agents,
subject to the terms of the Sale and Servicing Agreement, provided that such
appointment or delegation shall not affect or alter in any way the liability of
the Trustee as successor for the performance of the duties and obligations of
the Servicer in accordance with the terms hereof.

                  (i) Without derogating from the absolute nature of the
assignment granted to the Trustee under this Indenture or the rights of the
Trustee hereunder, the Issuer agrees that, unless such action is specifically
permitted hereunder or under the Related Documents, it will not, without the
prior written consent of the Trustee or the Controlling Noteholders, amend,
modify, waive, supplement, terminate or surrender, or agree to any amendment,
modification, supplement, termination, waiver or surrender of, the terms of any
Collateral or the Related Documents, or waive timely performance or observance
by the Servicer or the Seller under the Sale and Servicing Agreement; provided,
however, that no such amendment shall (i) increase or reduce in any manner the
amount of, or accelerate or delay the timing of, distributions that are required
to be made for the benefit of the Noteholders, or (ii) reduce the aforesaid
percentage of the Notes which are required to consent to any such amendment,
without the consent of the Holders of all the Outstanding Notes. If any such
amendment, modification, supplement or waiver shall be so consented to by the
Trustee or such Holders, the Issuer agrees, promptly following a request by the
Trustee to do so, to execute and deliver, in its own name and at its own
expense, such agreements, instruments, consents and other documents as the
Trustee may deem necessary or appropriate in the circumstances.

                  SECTION 3.08. Negative Covenants. Until the Termination Date,
the Issuer shall not:

                  (i) except as expressly permitted by this Indenture, the
         Purchase Agreement or the Sale and Servicing Agreement, sell, transfer,
         exchange or otherwise dispose of any of the properties or assets of the
         Issuer, including those included in the Trust Estate, unless directed
         to do so by the Controlling Noteholders;

                                     - 24 -
<PAGE>   31

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

                  (iii) (A) permit the validity or effectiveness of this
         Indenture to be impaired, or permit the Lien in favor of the Trustee
         created by this Indenture to be amended, hypothecated, subordinated,
         terminated or discharged, or permit any Person to be released from any
         covenants or obligations with respect to the Notes under this Indenture
         except as may be expressly permitted hereby, (B) permit any Lien,
         charge, excise, claim, security interest, mortgage or other encumbrance
         (other than the lien in favor of the Trustee created by 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), (C) permit the Lien in favor of the Trustee created
         by this Indenture not to constitute a valid first priority (other than
         with respect to any such tax, mechanics' or other lien) security
         interest in the Trust Estate, or (D) amend, modify or fail to comply
         with the provisions of the Related Documents without the prior written
         consent of the Controlling Noteholders.

                  SECTION 3.09. Annual Statement as to Compliance. The Issuer
will deliver to the Trustee, within 120 days after the end of each fiscal year
of the Issuer (commencing with the fiscal year ending December 31, 2000), an
Officer's Certificate stating, as to the Authorized Officer signing such
Officer's Certificate, that

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

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

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

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

                  (i) the Person (if other than the Issuer) formed by or
         surviving such consolidation or merger shall be a Person organized and
         existing under the laws of the United States of

                                     - 25 -
<PAGE>   32
         America or any State and shall expressly assume, by an indenture
         supplemental hereto, executed and delivered to the Trustee, in form and
         substance satisfactory to the Trustee, the due and punctual payment of
         the principal of and interest on all Notes and the performance or
         observance of every agreement and covenant of this Indenture and each
         other Related Document on the part of the Issuer to be performed or
         observed, all as provided herein;

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

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

                  (iv) the Issuer, at its own expense, shall have received an
         Opinion of Counsel which shall be delivered to and shall be
         satisfactory to the Trustee to the effect that such transaction will
         not have any material adverse tax consequence to the Trust, or any
         Noteholder;

                  (v) any action as is necessary to maintain the Lien and
         security interest created in favor of the Trustee by this Indenture
         shall have been taken;

                  (vi) the Issuer, at its own expense, shall have delivered to
         the Trustee an Officer's Certificate and an Opinion of Counsel (which
         shall describe the actions taken as required by clause (a)(v) of this
         Section 3.10 or that no such actions will be taken) each stating that
         such consolidation or merger and such supplemental indenture comply
         with this Article III and that all conditions precedent herein provided
         for relating to such transaction have been compiled with (including any
         filing required by the Exchange Act); and

                  (vii) the Issuer or the Person (if other than the Issuer)
         formed by or surviving such consolidation or merger has a net worth,
         immediately after such consolidation or merger, that is (a) greater
         than zero and (b) not less than the net worth of the Issuer immediately
         prior to giving effect to such consolidation or merger.

                  (b) The Issuer shall not convey or transfer all or
substantially all of its properties or assets, including those included in the
Trust Estate, to any Person (except as expressly permitted by the Indenture, the
Purchase Agreement or the Sale and Servicing Agreement), unless:

                  (i) the Person that acquires by conveyance or transfer the
         properties and assets of the Issuer shall (A) be a United States
         citizen or a Person organized and existing under the laws of the United
         States of America or any State, (B) expressly assume, by an indenture
         supplemental hereto, executed and delivered to the Trustee, in form and
         substance satisfactory to the Trustee, the due and punctual payment of
         the principal of and interest on all Notes and

                                     - 26 -
<PAGE>   33
         the performance or observance of every agreement and covenant of this
         Indenture and each Related Document on the part of the Issuer to be
         performed or observed, all as provided herein, (C) expressly agree by
         means of such supplemental indenture that all right, title and interest
         so conveyed or transferred shall be subject and subordinate to the
         rights of Holders of the Notes, (D) unless otherwise provided in such
         supplemental indenture, expressly agree 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 (E)
         expressly agree by means of such supplemental indenture 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;

                  (iv) the Issuer shall have received an Opinion of Counsel
         which shall be delivered to and shall be satisfactory to the Trustee to
         the effect that such transaction will not have any material adverse tax
         consequence to the Trust or any Noteholder;

                  (v) any action as is necessary to maintain the Lien and
         security interest created in favor of the Trustee by this Indenture
         shall have been taken;

                  (vi) the Issuer shall have delivered to the Trustee an
         Officer's Certificate and an Opinion of Counsel (which shall describe
         the actions taken as required by clause (b)(v) of this Section 3.10 or
         that no such actions will be taken) each stating that such conveyance
         or transfer and such supplemental indenture comply with this Article
         III and that all conditions precedent herein provided for relating to
         such transaction have been complied with (including any filing required
         by the Exchange Act); and

                  (vii) the Person acquiring by conveyance or transfer the
         properties or assets of the Issuer has a net worth, immediately after
         such conveyance or transfer, that is (a) greater than zero and (b) not
         less than the net worth of the Issuer immediately prior to giving
         effect to such conveyance or transfer.

                  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

                                     - 27 -
<PAGE>   34

succeed to, and be substituted for, and may exercise every right and power of,
the Issuer under this Indenture with the same effect as if such Person had been
named as the Issuer herein.

                  (b) Upon a conveyance or transfer of all the assets and
properties of the Issuer pursuant to Section 3.10(b), Associates Automobile
Receivables Trust 2000-1 will 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
Trustee stating that Associates Automobile Receivables Trust 2000-1 is to be so
released.

                  SECTION 3.12. No Other Business. The Issuer shall not engage
in any business other than financing, purchasing, owning, selling and managing
the Receivables in the manner contemplated by this Indenture and the Related
Documents and activities incidental thereto. After the Closing Date, the Issuer
shall not fund the purchase of any new Receivables.

                  SECTION 3.13. No Borrowing. The Issuer shall not issue, incur,
assume, guarantee or otherwise become liable, directly or indirectly, for any
Indebtedness except for (i) the Notes and (ii) any other Indebtedness permitted
by or arising under the Related Documents. The proceeds of the Notes shall be
used exclusively to fund the Issuer's purchase of the Receivables and the other
assets specified in the Sale and Servicing Agreement, to fund the Reserve
Account and to pay the Issuer's organizational, transactional and start-up
expenses.

                  SECTION 3.14. Servicer's Obligations. The Issuer shall cause
the Servicer to comply with Sections 3.9, 3.10, 3.11 and 4.8(a) of the Sale and
Servicing Agreement.

                  SECTION 3.15. Guarantees, Loans, Advances and Other
Liabilities. Except as contemplated by the Sale and Servicing Agreement or this
Indenture, the Issuer shall not make any loan or advance or credit to, or
guarantee (directly or indirectly or by an instrument having the effect of
assuming 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, any other interest in, or make any capital
contribution to, any other Person.

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

                  SECTION 3.17. Restricted Payments. Except as expressly
permitted by this Indenture or the Sale and Servicing Agreement, the Issuer
shall not, directly or indirectly, (i) make any distribution (by reduction of
capital or otherwise), whether in cash, property, securities or a combination
thereof, to the Owner Trustee or any owner of a beneficial interest in the
Issuer or

                                     - 28 -
<PAGE>   35
otherwise with respect to any ownership or equity interest or security in or of
the Issuer or to the Servicer, (ii) redeem, purchase, retire or otherwise
acquire for value any such ownership or equity interest or security or (iii) set
aside or otherwise segregate any amounts for any such purpose. The Issuer will
not, directly or indirectly, make payments to or distributions from the
Collection Account except in accordance with this Indenture and the Related
Documents.

                  SECTION 3.18. Notice of Events of Default. The Issuer agrees
to give the Trustee and the Rating Agencies prompt written notice of each Event
of Default hereunder, each default on the part of the Servicer or the Seller of
its obligations under the Sale and Servicing Agreement and each default on the
part of AFL of its obligations under the Purchase Agreement.

                  SECTION 3.19. Further Instruments and Acts. Upon request of
the Trustee, the Issuer will execute and deliver such further instruments and do
such further acts as may be reasonably necessary or proper to carry out more
effectively the purpose of this Indenture.

                  SECTION 3.20. Compliance with Laws. The Issuer shall comply
with the requirements of all applicable laws, the non-compliance with which
would, individually or in the aggregate, materially and adversely affect the
ability of the Issuer to perform its obligations under the Notes, this Indenture
or any Related Document.

                  SECTION 3.21. Amendments of Sale and Servicing Agreement and
Trust Agreement. The Issuer shall not agree to any amendment to Section 10.1 of
the Sale and Servicing Agreement or Section 11.1 of the Trust Agreement to
eliminate the requirements thereunder that the Trustee or the Holders of the
Notes consent to amendments thereto as provided therein.

                  SECTION 3.22. Removal of Administrator. So long as any Notes
are issued and 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 3.23. Income Tax Characterization. For purposes of
federal income, state and local income and franchise and any other income taxes,
the Issuer will treat the Notes as indebtedness.

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

                  SECTION 4.01. Satisfaction and Discharge of Indenture. This
Indenture shall cease to be of further effect with respect to the Notes except
as to (i) rights of registration of transfer and exchange, (ii) substitution of
mutilated, destroyed, lost or stolen Notes, (iii) rights of Noteholders to

                                     - 29 -
<PAGE>   36

receive payments of principal, interest and premium, if any, thereon, (iv)
Sections 3.03, 3.04, 3.05, 3.07, 3.08, 3.10, 3.12, 3.13, 3.20, 3.21 and 3.23,
(v) the rights, obligations and immunities of the Trustee hereunder (including
the rights of the Trustee under Section 6.07 and the obligations of the Trustee
under Section 4.02) and (vi) the rights of Noteholders as beneficiaries hereof
with respect to the property so deposited with the Trustee payable to all or any
of them, and the Trustee, on demand of and at the expense of the Issuer, shall
execute proper instruments acknowledging satisfaction and discharge of this
Indenture with respect to the Notes, when

                  (A) either

                           (1) all Notes theretofore authenticated and
         delivered, other than (i) Notes that have been destroyed, lost or
         stolen and that have been replaced or paid as provided in Section 2.05
         and (ii) 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 3.03, have been delivered to the Trustee for cancellation; or

                           (2) all Notes not theretofore delivered to the
         Trustee for cancellation

                                    (i) have become due and payable, or

                                    (ii) will become due and payable at the
                  Final Scheduled Distribution Date within one year, or

                                    (iii) are to be called for redemption within
                  one year under arrangements satisfactory to the Trustee for
                  the giving of notice of redemption by the Trustee in the name,
                  and at the expense, of the Issuer,

         and the Issuer, in the case of (i), (ii) or (iii) above, has
         irrevocably deposited or caused to be irrevocably deposited with the
         Trustee as part of the Trust Estate 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 in an
         Eligible Account in the name of the Trustee for such purpose, in an
         amount sufficient to pay and discharge the entire indebtedness on such
         Notes not theretofore delivered to the Trustee for cancellation when
         due on the Final Scheduled Distribution Date or Redemption Date (if
         Notes shall have been called for redemption pursuant to Section 10.01),
         as the case may be;

                  (B) the Issuer has paid or caused to be paid all Secured
         Obligations; and

                                     - 30 -
<PAGE>   37

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

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

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

                  SECTION 4.04. Release of Trust Estate. The Trustee shall, on
or after the Termination Date, release any remaining portion of the Trust Estate
from the Lien created by this Indenture and deposit in the Collection Account
any funds then on deposit in any other Trust Account. The Trustee shall release
property from the Lien created by this Indenture pursuant to this Section 4.04
only upon receipt of an Issuer Request accompanied by an Officer's Certificate,
an Opinion of Counsel and (if required by the TIA) Independent Certificates in
accordance with TIA Sections 314(c) and 314(d)(1) meeting the applicable
requirements of Section 11.01.

                                    ARTICLE V

                                    REMEDIES

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

                                     - 31 -
<PAGE>   38

                  (i) default in the payment of any interest on any Class A Note
         when the same becomes due and payable, and such default shall continue
         for a period of five days (so long as any Class A Notes are
         Outstanding, each Holder of any Class M and Class B Notes or the Owner
         of any such note by such Holder's acceptance of such Note or beneficial
         interest therein, as the case may be, shall be deemed to have consented
         to the delay in payment of interest on such class of Notes and to have
         waived its right to institute suit for enforcement of any such
         payment); or

                  (ii) after the Class A Notes have been paid in full, default
         in the payment on payment of interest on any Class M Note when the same
         becomes due and payable, and such default shall continue for a period
         of five days (so long as the Class M Notes are outstanding, each Holder
         of any Class B Note or the Owner of any such note by such Holder's
         acceptance of such note or beneficial interest therein, as the case may
         be, shall be deemed to have consented to the delay in payment of
         interest on such class of Notes and to have waived its right to
         institute suit for enforcement of any such payment); or

                  (iii) after the Class M Notes have been paid in full, default
         in the payment of any interest on any Class B Note when the same
         becomes due and payable, and such default shall continue for a period
         of five days (so long as the Class B Notes are outstanding); or

                  (iv) default in the payment of the principal of or any
         installment of the principal of any Note when the same becomes due and
         payable; or

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

                  (vi) the commencement of an involuntary case against the
         Issuer under any applicable Federal or state bankruptcy, insolvency or
         other similar law now or hereafter in effect, and such case is not
         dismissed within 60 days; or

                                     - 32 -
<PAGE>   39

                  (vii) (A) 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, (B) the entry of an order for
         relief in an involuntary case against the Issuer under any such law,
         (C) the consent by the Issuer to the entry of any such order for
         relief, (D) 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, (E) the making by the Issuer of any general
         assignment for the benefit of creditors, (F) the failure by the Issuer
         generally to pay its debts as such debts become due, or (G) the taking
         of action by the Issuer in furtherance of any of the foregoing.

                  The Issuer shall deliver to the Trustee, within five days
after obtaining knowledge 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 clause (iii), its status
and what action the Issuer is taking or proposes to take with respect thereto.

                  SECTION 5.02.  Rights upon Event of Default.

                  (a) If an Event of Default shall have occurred and be
continuing, the Notes shall become immediately due and payable at par, together
with accrued interest thereon. If an Event of Default shall have occurred and be
continuing, the Trustee may exercise any of the remedies specified in Section
5.04(a).

                  (b) If an Event of Default shall have occurred and be
continuing, the Trustee in its discretion may, or if so requested in writing by
the Controlling Noteholders shall, upon prior written notice to the Rating
Agencies, declare by written notice to the Issuer that the Notes become,
whereupon they shall become, immediately due and payable at par, together with
accrued interest thereon. Notwithstanding anything to the contrary in this
paragraph (b), if an Event of Default specified in Section 5.01(vi) or (vii)
shall occur and be continuing, the Notes shall become immediately due and
payable at par, together with accrued interest thereon.

                  SECTION 5.03. Collection of Indebtedness and Suits for
Enforcement by Trustee; Authority of Trustee.

                  (a) The Issuer covenants that if any Notes are accelerated
following the occurrence of an Event of Default, the Issuer will, upon demand of
the Trustee, pay to it, for the benefit of the Holders of such Notes, the whole
amount then due and payable on such Notes for principal and interest, with
interest upon the overdue principal, and, to the extent payment at such rate of
interest shall be legally enforceable, upon overdue installments of interest, at
the applicable Interest Rate and in addition thereto such further amount as
shall be sufficient to cover the costs and expenses of collection,

                                     - 33 -
<PAGE>   40

including the reasonable compensation, expenses, disbursements, indemnified
amounts and advances of the Trustee and its agents and counsel.

                  (b) If an Event of Default occurs and is continuing, the
Trustee may in its discretion, proceed to protect and enforce its rights and the
rights of the Noteholders, by such appropriate Proceedings as the 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 Trustee by this Indenture or by law.

                  (c) Notwithstanding anything to the contrary contained in this
Indenture (including without limitation Sections 5.04(a), 5.12, 5.13 and 5.17)
if the Issuer fails to perform its obligations under Section 10.01 hereof when
and as due, the Trustee may in its discretion proceed to protect and enforce its
rights and the rights of the Noteholders by such appropriate Proceedings as the
Trustee shall deem most effective to protect and enforce any such rights,
whether for specific performance 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 Trustee by this
Indenture or by law.

                  (d) In case 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 in case 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 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 Trustee
shall have made any demand pursuant to the provisions of this Section, shall be
entitled and empowered, by intervention in such Proceedings or otherwise:

                  (i) to file and prove a claim or claims for the whole amount
         of principal, interest and premium, if any, 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 Trustee
         (including any claim for reasonable compensation to the 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 Trustee and each predecessor
         Trustee, except as a result of negligence or bad faith) and of the
         Noteholders allowed in such Proceedings;

                                     - 34 -
<PAGE>   41

                  (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 moneys or other property
         payable or deliverable on any such claims and to distribute all amounts
         received with respect to the claims of the Noteholders and of the
         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 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 Trustee, and, in the event that the Trustee shall consent to the
making of payments directly to such Noteholders, to pay to the Trustee such
amounts as shall be sufficient to cover reasonable compensation to the Trustee,
each predecessor Trustee and their respective agents, attorneys and counsel, and
all other expenses and liabilities incurred, and all advances made, by the
Trustee and each predecessor Trustee except as a result of negligence or bad
faith.

                  (e) Nothing herein contained shall be deemed to authorize the
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 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 Trustee without the
possession of any of the Notes or the production thereof in any trial or other
Proceedings relative thereto, and any such action or Proceedings instituted by
the Trustee shall be brought in its own name as trustee of an express trust, and
any recovery of judgment, subject to the payment of the expenses, disbursements
and compensation of the Trustee, each predecessor Trustee and their respective
agents and attorneys, shall be for the ratable benefit of the Holders of the
Notes.

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

                                     - 35 -
<PAGE>   42
                  SECTION 5.04. Remedies.

                  (a) If an Event of Default under Section 5.01(i), (ii), (iii),
(iv), (vi) or (vii) shall have occurred and be continuing which results in the
acceleration of the Notes (whether or not the Trust Estate is sold in one or
more public or private sales as provided in Section 5.04(d)(iv)), the Trustee
shall make payments on the Notes as provided in Section 5.06(a).

                  (b) If an Event of Default under Section 5.01(v) shall have
occurred and be continuing which results in the acceleration of the Notes
(whether or not the Trust Estate is sold in one or more public or private sales
as provided in Section 5.04(d)(iv)), the Trustee will make payments on the Notes
as provided in Section 5.06(b).

                  (c) If the Trustee, in compliance with Section 5.04(a) or (b),
is deemed to have a conflict of interest under the TIA and is required to resign
as Trustee hereunder, the Trustee, pursuant to Section 6.10, may appoint one or
more trustees to act separately hereunder for each class of Notes (in the case
of the Class A Notes, such trustee shall act for all Class A Notes as if they
comprised a single class). In the event separate trustees are appointed for one
or more classes of Notes:

                  (i) so long as any amounts remain unpaid with respect to the
         Class A Notes, only the Trustee for the Class A Noteholders shall be
         entitled to waive any Event of Default or Servicer Termination Event or
         exercise any remedies under this Indenture;

                  (ii) after the Class A Notes have been paid in full, only the
         Trustee for the Class M Noteholders shall be entitled to waive any
         Event of Default or Servicer Termination Event or exercise any remedies
         under this Indenture; and

                  (iii) after the Class M Notes have been paid in full, the
         Trustee for the Class B Noteholders shall be entitled to waive any
         Event of Default or Servicer Termination Event or exercise any remedies
         under this Indenture.

                  (d) If an Event of Default shall have occurred and be
continuing, the Trustee may (subject to Section 5.05):

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

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

                                     - 36 -
<PAGE>   43

                  (iii) exercise any remedies of a secured party under the UCC
         and any other remedy available to the Trustee and take any other
         appropriate action to protect and enforce the rights and remedies of
         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; provided, however, that

                           (A) the Trustee may not sell or otherwise liquidate
                  the Trust Estate following an Event of Default unless

                                    (I) such Event of Default is of the type
                           described in Section 5.01(i), (ii), (iii) or (iv), or

                                    (II) either

                                             (x) the Holders of 100% of the
                                    Outstanding Amount of the Notes consent
                                    thereto,

                                             (y) the proceeds of such sale or
                                    liquidation distributable to the Noteholders
                                    are sufficient to discharge in full all
                                    amounts then due and unpaid upon such Notes
                                    for principal and interest, or

                                             (z) the 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
                                    they would have become due if the Notes had
                                    not been declared due and payable, and the
                                    Trustee provides prior written notice to the
                                    Rating Agencies and obtains the consent of
                                    the Controlling Noteholders.

                  In determining such sufficiency or insufficiency with respect
                  to clause (y) and (z), the 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 5.05. Optional Preservation of the Receivables. If any
Notes have been declared to be due and payable under Section 5.02 following an
Event of Default and such declaration and its consequences have not been
rescinded and annulled, the Trustee may, but need not, elect to maintain
possession of the Trust Estate. It is the desire of the parties hereto and the
Noteholders that there be at all times sufficient funds for the payment of
principal of and interest on the Notes, and the

                                     - 37 -
<PAGE>   44
Trustee shall take such desire into account when determining whether or not to
maintain possession of the Trust Estate. In determining whether to maintain
possession of the Trust Estate, the 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 5.06. Priorities.

                  (a) If the Trustee collects any money or property pursuant to
this Article V (including amounts on deposit in the Note Interest Distribution
Account and the Principal Distribution Account) following an Event of Default
described in Section 5.01(i), (ii), (iii), (iv), (vi) or (vii) and an
acceleration of the Notes pursuant to Section 5.02, the Trustee shall pay as
promptly as practicable out the money or property in the following order:

                  FIRST: amounts due and owing and required to be distributed by
         the Trust to the Servicer, the Owner Trustee, the Administrator, the
         Trustee, the Lockbox Bank and the Custodian, respectively, pursuant to
         priorities (i), (ii) and (iii) of Section 4.6 of the Sale and Servicing
         Agreement and not previously distributed, in the order of such
         priorities and without preference or priority of any kind within such
         priorities;

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

                  THIRD: to Class A-1 Noteholders for amounts due and unpaid on
         the Class A-1 Notes for principal, ratably, without preference or
         priority of any kind, according to the amounts due and payable on the
         Class A-1 Notes for principal;

                  FOURTH: to Class A-2 Noteholders and Class A-3 Noteholders for
         amounts due and unpaid on the Class A-2 Notes and Class A-3 Notes for
         principal, ratably, without preference or priority of any kind,
         according to the amounts due and payable on the Class A-2 Notes and
         Class A-3 Notes for principal;

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

                  SIXTH: to Class M Noteholders for amounts due and unpaid on
         the Class M Notes for principal, ratably, without preference or
         priority of any kind, according to the amounts due and payable on the
         Class M Notes for principal;

                                     - 38 -
<PAGE>   45

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

                  EIGHTH: to Class B Noteholders for amounts due and unpaid on
         the Class B Notes for principal, ratably, without preference or
         priority of any kind, according to the amounts due and payable on the
         Class B Notes for principal.

                  (b) If the Trustee collects any money or property pursuant to
this Article V (including amounts on deposit in the Note Interest Distribution
Account and the Principal Distribution Account) following an Event of Default
described in Section 5.01(v) and an acceleration of the Notes pursuant to
Section 5.02, the Trustee shall pay as promptly as practicable out the money or
property in the following order:

                  FIRST: amounts due and owing and required to be distributed to
         the Servicer, the Owner Trustee, the Administrator, the Trustee, the
         Lockbox Bank, and the Custodian, respectively, pursuant to priorities
         (a), (b) and (c) of Section 4.6 of the Sale and Servicing Agreement and
         not previously distributed, in the order of such priorities and without
         preference or priority of any kind within such priorities;

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

                  THIRD: to the Class A Noteholders (sequentially, commencing
         with the Class A-1 Noteholders), the First Priority Principal
         Distribution Amount (as defined in the Sale and Servicing Agreement),
         if any;

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

                  FIFTH: to the Class A Noteholders (sequentially, commencing
         with the Class A-1 Noteholders) until the Outstanding Amount of the
         Class A Notes is reduced to zero and then to the Class M Noteholders,
         the Second Priority Principal Distribution Amount (as defined in the
         Sale and Servicing Agreement), if any;

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

                                     - 39 -
<PAGE>   46

                  SEVENTH: to Class A Noteholders (sequentially, commencing with
         the Class A-1 Noteholders) for amounts due and unpaid on the Class A
         Notes for principal, ratably, without preference or priority of any
         kind, according to the amounts due and payable on the Class A Notes for
         principal;

                  EIGHTH: to Class M Noteholders for amounts due and unpaid on
         the Class M Notes for principal, ratably, without preference or
         priority of any kind, according to the amounts due and payable on the
         Class M Notes for principal; and

                  NINTH: to Class B Noteholders for amounts due and unpaid on
         the Class B Notes for principal, ratably, without preference or
         priority of any kind, according to the amounts due and payable on the
         Class B Notes for principal.

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

                  SECTION 5.07. Limitation of Suits. No Holder of any Note shall
have any right to institute any Proceeding, judicial or otherwise, with respect
to this Indenture, or for the appointment of a receiver or trustee, or for any
other remedy hereunder, unless:

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

                  (ii) the Holders of not less than 25% of the Outstanding
         Amount of the Notes have made written request to the Trustee to
         institute such Proceeding in respect of such Event of Default in its
         name as Trustee hereunder;

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

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

                  (v) no direction inconsistent with such written request has
         been given to the Trustee during such 60-day period by the Controlling
         Noteholders;

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

                                     - 40 -
<PAGE>   47

prejudice the rights of any other Holders of Notes or to obtain or to seek to
obtain priority or preference over any other Holders or to enforce any right
under this Indenture, except in the manner herein provided.

                  In the event the Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Holders of Notes,
neither representing the Controlling Noteholders, the Trustee in its sole
discretion may determine what action, if any, shall be taken, notwithstanding
any other provisions of this Indenture.

                  SECTION 5.08. 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, 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; provided, that the Holder or
Owner of a Class M Note will be deemed to have consented to any delay in payment
thereto of any interest due thereon that is in accordance with the payment of
interest pursuant to Section 4.6 of the Sale and Servicing Agreement and to have
waived its right to institute suit for enforcement of any such payment for so
long as any Class A Note is Outstanding, and each Holder or Owner of a Class B
Note will be deemed to have consented to any delay in the payment thereto of any
interest due thereon that is in accordance with payments of amounts pursuant to
Section 4.6 of the Sale and Servicing Agreement and to have waived its right to
institute suit for enforcement of any such payment for so long as any Class M
Note is Outstanding.

                  SECTION 5.09. Restoration of Rights and Remedies. If 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 Trustee or to such Noteholder,
then and in every such case the Issuer, the Trustee and the Noteholders shall,
subject to any determination in such Proceeding, be restored severally and
respectively to their former positions hereunder, and thereafter all rights and
remedies of the Trustee and the Noteholders shall continue as though no such
Proceeding had been instituted.

                  SECTION 5.10. Rights and Remedies Cumulative. No right or
remedy herein conferred upon or reserved 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.

                                     - 41 -
<PAGE>   48

                  SECTION 5.11. Delay or Omission Not a Waiver. No delay or
omission of 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 Trustee
or to the Noteholders may be exercised from time to time, and as often as may be
deemed expedient, by the Trustee or by the Noteholders, as the case may be.

                  SECTION 5.12. Control by Controlling Noteholders. The
Controlling Noteholders shall have the right to direct the time, method and
place of conducting any Proceeding for any remedy available to the Trustee with
respect to the Notes or exercising any trust or power conferred on the Trustee;
provided that

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

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

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

                  (iv) the Trustee may take any other action deemed proper by
         the Trustee that is not inconsistent with such direction; provided,
         however, that, subject to Section 6.01, the Trustee need not take any
         action that it determines might involve it in liability or might
         materially and adversely affect the rights of any Noteholders not
         consenting to such action.

                  SECTION 5.13. Waiver of Past Defaults.

                  The Controlling Noteholders may waive any past Default or
Event of Default and its consequences except a Default (a) in payment of
principal of or interest on any of the Notes or (b) in respect of a covenant or
provision hereof 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 Trustee and
the Holders of the Notes shall be restored to their former positions and rights
hereunder, respectively; but no such waiver shall extend to any subsequent or
other Default or impair any right consequent thereto.

                  Upon any such waiver, such Default shall cease to exist and be
deemed to have been cured and not to have occurred, and any Event of Default
arising therefrom shall be deemed to have

                                     - 42 -
<PAGE>   49
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 5.14. 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 suit for the enforcement of any right or remedy under this Indenture, or in
any suit against the Trustee for any action taken, suffered or omitted by it as
Trustee, the filing by any party litigant in such suit of an undertaking to pay
the costs of such suit and that such court may in its discretion assess
reasonable costs, including reasonable attorneys' fees, against any party
litigant in such suit, having due regard to the merits and good faith of the
claims or defenses made by such party litigant; but the provisions of this
Section shall not apply to (a) any suit instituted by the Trustee, (b) any suit
instituted by any Noteholder, or group of Noteholders, in each case holding in
the aggregate more than 10% of the Outstanding Amount of the Notes or (c) any
suit 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 5.15. Waiver of Stay or Extension Laws. The Issuer
covenants (to the extent that it may lawfully do so) that it will not at any
time insist upon, or plead or in any manner whatsoever, claim or take the
benefit or advantage of, any stay or extension law wherever enacted, now or at
any time hereafter in force, that may affect the covenants or the performance of
this Indenture; and the Issuer (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantages of any such law, and covenants that
it will not hinder, delay or impede the execution of any power herein granted to
the Trustee, but will suffer and permit the execution of every such power as
though no such law had been enacted.

                  SECTION 5.16. Action on Notes. The 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 Trustee or the Noteholders shall be impaired by the recovery of any
judgment by the 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.

                  SECTION 5.17. Performance and Enforcement of Certain
Obligations.

                  (a) Promptly following a request from the Trustee to do so and
at the Seller's expense, the Issuer agrees to take all such lawful action as the
Trustee may request to compel or secure the performance and observance by the
Seller, the Servicer and AFL, as applicable, of each of their obligations to the
Issuer under or in connection with the Sale and Servicing Agreement or to the
Seller under or in connection with the Purchase Agreement in accordance with the
terms thereof, and to

                                     - 43 -
<PAGE>   50
exercise any and all rights, remedies, powers and privileges lawfully available
to the Issuer under or in connection with the Sale and Servicing Agreement to
the extent and in the manner directed by the Trustee, including the transmission
of notices of default on the part of the Seller or the Servicer thereunder and
the institution of legal or administrative actions or proceedings to compel or
secure performance by the Seller or the Servicer of each of their obligations
under the Sale and Servicing Agreement.

                  (b) If an Event of Default has occurred and is continuing, the
Trustee may, and at the direction (which direction shall be in writing,
including facsimile) of the Controlling Noteholders shall, upon the receipt of
such indemnity as the Trustee may reasonably request, exercise all rights,
remedies, powers, privileges and claims of the Issuer against the Seller or the
Servicer under or in connection with the Sale and Servicing Agreement, 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 Sale and Servicing Agreement, and any right of the
Issuer to take such action shall be suspended.

                  (c) Promptly following a request from the Trustee to do so and
at the Seller's expense, the Issuer agrees to take all such lawful action as the
Trustee may request to compel or secure the performance and observance by AFL of
each of its obligations to the Seller under or in connection with the Purchase
Agreement 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 Purchase Agreement to the extent and in the manner
directed by the Trustee, including the transmission of notices of default on the
part of the Seller thereunder and the institution of legal or administrative
actions or proceedings to compel or secure performance by AFL of each of its
obligations under the Purchase Agreement.

                  (d) If an Event of Default has occurred and is continuing the
Trustee may, and at the direction (which direction shall be in writing,
including facsimile) of the Controlling Noteholders shall, upon the receipt of
such indemnity as the Trustee may reasonably request, exercise all rights,
remedies, powers, privileges and claims of the Seller against AFL under or in
connection with the Purchase Agreement, including the right or power to take any
action to compel or secure performance or observance by AFL of each of its
obligations to the Seller hereunder and to give any consent, request, notice,
direction, approval, extension or waiver under the Purchase Agreement, and any
right of the Seller to take such action shall be suspended.

                                     - 44 -
<PAGE>   51
                                   ARTICLE VI

                                   THE TRUSTEE

                  SECTION 6.01. Duties of Trustee.

                  (a) If an Event of Default of which a Responsible Officer of
the Trustee shall have actual knowledge has occurred and is continuing, the
Trustee shall exercise the rights and powers vested in it by this Indenture and
in 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 of
which a Responsible Officer of the Trustee shall have actual knowledge:

                  (i) the Trustee undertakes to perform such duties and only
         such duties as are specifically set forth in this Indenture and no
         implied covenants or obligations shall be read into this Indenture
         against the Trustee; and

                  (ii) prior to the occurrence of a Event of Default of which a
         Responsible Officer of the Trustee shall have actual knowledge, and
         after the curing or waiver of all such Events of Default which may have
         occurred, (A) the duties and obligations of the Trustee shall be
         determined solely by the express provisions of this Indenture, (B) the
         Trustee shall not be liable except for the performance of such duties
         and obligations as are specifically set forth in this Indenture, (C) no
         implied covenants or obligations shall be read into this Indenture
         against the Trustee and (D) in the absence of bad faith on its part,
         the Trustee may conclusively rely, as to the truth of the statements
         and the correctness of the opinions expressed therein, upon all
         resolutions, statements, reports, documents, orders, certificates or
         opinions furnished to the Trustee and conforming to the requirements of
         this Indenture; provided, however, that the Trustee shall examine the
         certificates and opinions to determine whether or not they conform to
         the requirements of this Indenture and the Trustee's other Related
         Documents. If any such instrument is found not to conform in any
         material respect to the requirements of this Indenture or any
         applicable Related Document, the Trustee shall notify the Noteholders
         of such instrument in the event the Trustee, after so requesting, does
         not receive a satisfactorily corrected document.

                  (c) The Trustee may not be relieved from liability in its
individual capacity from liability to the Noteholders for its willful
misconduct, negligence or bad faith in connection with the distribution of
amounts from the Note Interest Distribution Account or the Principal
Distribution Account in accordance with the terms hereof, or for its willful
misconduct, negligence or bad faith in the performance of its duties as Trustee
hereunder, except that:

                                     - 45 -
<PAGE>   52

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

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

                  (iii) the 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 5.12 or relating to the
         time, method and place of conducting any proceeding for any remedy
         available to the Trustee, or executing or omitting to execute any power
         conferred upon the Trustee, under this Agreement.

                  (d) Every provision of this Indenture that in any way relates
to the Trustee is subject to paragraphs (a), (b) and (c) of this Section.

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

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

                  (g) No provision of this Indenture shall require the 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.

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

                  (i) In no event shall the Trustee be required to perform, or
be responsible for the manner of performance of, any of the obligations of the
Servicer, or any other party, under the Sale and Servicing Agreement, except
during such time, if any, as the Trustee shall be the successor to, and be
vested with the rights, powers, duties and privileges of the Servicer in
accordance with the terms of, the Sale and Servicing Agreement.

                  (j) The Trustee shall, and hereby agrees that it will, perform
all of the obligations and duties required of it under the Sale and Servicing
Agreement.

                                     - 46 -
<PAGE>   53

                  (k) Without limiting the generality of this Section 6.01, the
Trustee shall have no duty (i) to see to any recording, filing or depositing of
this Indenture or any agreement referred to herein or any financing statement
evidencing a security interest in the Financed Vehicles, or to see to the
maintenance of any such recording or filing or depositing or to any recording,
refiling or redepositing of any thereof, (ii) to see to any insurance of the
Financed Vehicles or Obligors or to effect or maintain any such insurance, (iii)
to see to the payment or discharge of any tax, assessment or other governmental
charge or any Lien or encumbrance of any kind owing with respect to, assessed or
levied against any part of the Trust, (iv) to confirm or verify the contents of
any reports or certificates delivered to the Trustee pursuant to this Indenture
or the Sale and Servicing Agreement believed by the Trustee to be genuine and to
have been signed or presented by the proper party or parties, or (v) to inspect
the Financed Vehicles at any time or ascertain or inquire as to the performance
of observance of any of the Issuer's, the Seller's or the Servicer's
representations, warranties or covenants or the Servicer's duties and
obligations as Servicer and as custodian of the Receivable Files under the
Agreement.

                  (l) The Trustee shall not be required to take notice or be
deemed to have notice or knowledge of an Event of Default or any other default
under this Indenture unless a Responsible Officer of the Trustee shall have
received written notice thereof. In the absence of receipt of such notice, the
Trustee may conclusively assume that there is no Event of Default or other such
default.

                  SECTION 6.02. Rights of Trustee.

                  (a) The Trustee may rely and shall be protected in acting or
refraining from acting upon any document believed by it to be genuine and to
have been signed or presented by the proper person. The Trustee need not
investigate any fact or matter stated in the document.

                  (b) Before the Trustee acts or refrains from acting, it may
require an Officer's Certificate (with respect to factual matters) or an Opinion
of Counsel, as applicable, which shall not be at the expense of the Trustee. The
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, as
applicable, or as directed by the requisite amount of Note Owners as provided
herein.

                  (c) The 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 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 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 Trustee's conduct does not
constitute willful misconduct, negligence or bad faith.

                                     - 47 -
<PAGE>   54

                  (e) The Trustee may consult with counsel, and the advice of
such counsel or any Opinion of Counsel with respect to legal matters relating to
this Indenture or the Related Documents 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 of such counsel or Opinion of Counsel.

                  (f) The Trustee shall be under no obligation to institute,
conduct or defend any litigation under this Indenture or the Related Documents
or in relation to this Indenture, at the request, order or direction of any of
the Holders of Notes, pursuant to the provisions of this Indenture, unless such
Holders of Notes shall have offered to the Trustee reasonable security or
indemnity against the costs, expenses and liabilities that may be incurred
therein or thereby; provided, however, that the Trustee shall, upon the
occurrence of an Event of Default (that has not been cured or waived), exercise
the rights and powers vested in it by this Indenture with reasonable care and
skill.

                  (g) The 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, consent, order, approval, bond or
other paper or document, unless requested in writing to do so by the Holders of
Notes evidencing not less than 25% of the Outstanding Amount thereof; provided,
however, that if the payment within a reasonable time to the Trustee of the
costs, expenses or liabilities likely to be incurred by it in the making of such
investigation is, in the opinion of the Trustee, not reasonably assured to the
Trustee by the security afforded to it by the terms of this Indenture or the
Sale and Servicing Agreement, the Trustee may require reasonable indemnity
against such cost, expense or liability as a condition to so proceeding; the
reasonable expense of every such examination shall be paid by the Person making
such request, or, if paid by the Trustee, shall be reimbursed by the Person
making such request upon demand.

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

                  (i) The Trustee shall not be required to give any bond or
surety in respect of the execution of the Trust or the Trust Estate created
hereby or the powers granted hereunder.

                  SECTION 6.03. Individual Rights of Trustee. The Trustee in its
individual or any other capacity may become the owner or pledgee of Notes and
may otherwise deal with the Issuer or its Affiliates with the same rights it
would have if it were not Trustee. Any Paying Agent, Note Registrar,
co-registrar or co-paying agent may do the same with like rights. However, the
Trustee is required to comply with Sections 6.11 and 6.12.

                                     - 48 -
<PAGE>   55

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

                  SECTION 6.05. Notice of Defaults. If a Default occurs and is
continuing and if it is known to a Responsible Officer of the Trustee, the
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 (including payments pursuant to the mandatory redemption
provisions of such Note), the 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 6.06. Reports by Trustee to Holders. The Trustee shall
deliver to each Noteholder such information as may be required to enable such
holder to prepare its federal and state income tax returns.

                  SECTION 6.07.  Compensation and Indemnity.

                  (a) AFL in a separate letter agreement (the "Letter
Agreement") has covenanted and agreed to pay to the Trustee, and the Trustee
shall be entitled to, certain fees, which shall not be limited by any law on
compensation of a trustee of an express trust. In the Letter Agreement, AFL has
also agreed to reimburse the 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 Trustee's agents,
counsel, accountants and experts. AFL has also agreed to indemnify the Trustee
and any director, officer, employee or agent of the Trustee against any and all
loss, liability or expense (including attorneys' fees) incurred by it in
connection with the administration of this trust and the performance of its
duties hereunder.

                  (b) If notwithstanding the provisions of the Letter Agreement,
AFL fails to pay any fee, expense or indemnified amount due to the Trustee
pursuant to the terms of the Letter Agreement, the Trustee shall be entitled to
a distribution in respect of such amount pursuant of Section 4.6(ii) of the Sale
and Servicing Agreement. The Issuer's payment obligations to the Trustee
pursuant to this Section shall survive the discharge of this Indenture and the
removal or resignation of the Trustee. When the Trustee incurs expenses after
the occurrence of a Default specified in Section 5.01(vi) or (vii) 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. Notwithstanding anything
else set forth in this Indenture or the Related Documents, the Trustee

                                     - 49 -
<PAGE>   56
agrees that the obligations of the Issuer (but not AFL) to the Trustee hereunder
and under the Related Documents shall be recourse to the Trust Estate only. In
addition, the Trustee agrees that its recourse to the Issuer, the Trust Estate
and the Seller shall be limited to the right to receive the distributions
referred to in the first two sentences of this Section 6.07(b).

                  SECTION 6.08. Replacement of Trustee. The Trustee may resign
at any time by so notifying the Issuer. The Issuer may remove the Trustee if:

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

                  (ii) a court having jurisdiction in the premises in respect of
         the Trustee in an involuntary case or proceeding under federal or state
         banking or bankruptcy laws, as now or hereafter constituted, or any
         other applicable federal or state bankruptcy, insolvency or other
         similar law, shall have entered a decree or order granting relief or
         appointing a receiver, liquidator, assignee, custodian, trustee,
         conservator, sequestrator (or similar official) for the Trustee or for
         any substantial part of the Trustee's property, or ordering the
         winding-up or liquidation of the Trustee's affairs;

                  (iii) an involuntary case under the federal bankruptcy laws,
         as now or hereafter in effect, or another present or future federal or
         state bankruptcy, insolvency or similar law is commenced with respect
         to the Trustee and such case is not dismissed within 60 days;

                  (iv) the Trustee commences a voluntary case under any federal
         or state banking or bankruptcy laws, as now or hereafter constituted,
         or any other applicable federal or state bankruptcy, insolvency or
         other similar law, or consents to the appointment of or taking
         possession by a receiver, liquidator, assignee, custodian, trustee,
         conservator, sequestrator (or other similar official) for the Trustee
         or for any substantial part of the Trustee's property, or makes any
         assignment for the benefit of creditors or fails generally to pay its
         debts as such debts become due or takes any corporate action in
         furtherance of any of the foregoing;

                  (v) the Trustee otherwise becomes incapable of acting; or

                  (vi) the rating assigned to the long-term unsecured debt
         obligations of the Trustee (or the holding company thereof) by the
         Rating Agencies shall be lowered below the rating of "BBB," "Baa3" or
         equivalent rating or be withdrawn by either of the Rating Agencies.

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

                                     - 50 -
<PAGE>   57
                  A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Issuer. Thereupon the resignation
or removal of the retiring Trustee shall become effective, and the successor
Trustee shall have all the rights, powers and duties of the Trustee under this
Indenture. The successor Trustee shall mail a notice of its succession to
Noteholders. The retiring Trustee shall promptly transfer all property held by
it as Trustee to the successor Trustee.

                  If a successor Trustee does not take office within 60 days
after the retiring Trustee resigns or is removed, the retiring Trustee, the
Issuer or the Holders of a majority in Outstanding Amount of the Notes may
petition any court of competent jurisdiction for the appointment of a successor
Trustee.

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

                  Any resignation or removal of the Trustee and appointment of a
successor Trustee pursuant to any of the provisions of this Section shall not
become effective until acceptance of appointment by the successor Trustee
pursuant to this Section and payment of all fees and expenses owed to the
outgoing Trustee. Notwithstanding the replacement of the Trustee pursuant to
this Section, the retiring Trustee shall be entitled to payment or reimbursement
of such amounts as such Person is entitled pursuant to Section 6.07.

                  SECTION 6.09. Successor Trustee by Merger. If the Trustee
consolidates with, merges or converts into, or transfers all or substantially
all its corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation without any
further act shall be the successor Trustee. The Trustee shall provide the Rating
Agencies prompt notice of any such transaction.

                  In case at the time such successor or successors by merger,
conversion or consolidation to the 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 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 Trustee may authenticate such Notes either
in the name of any predecessor hereunder or in the name of the successor to the
Trustee; and in all such cases such certificates shall have the full force which
it is anywhere in the Notes or in this Indenture provided that the certificate
of the Trustee shall have.

                  SECTION 6.10. Appointment of Co-Trustee or Separate 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 may at the

                                     - 51 -
<PAGE>   58
time be located, the Trustee, shall have the power and may execute and deliver
all instruments to appoint one or more Persons to act as a co-trustee or
co-trustees, or separate trustee or separate trustees, of all or any part of the
Trust, and to vest in such Person or Persons, in such capacity and for the
benefit of the Noteholders, such title to the Trust, or any part hereof, and,
subject to the other provisions of this Section, such powers, duties,
obligations, rights and trusts as the Trustee may consider necessary or
desirable. No co-trustee or separate trustee hereunder shall be required to meet
the terms of eligibility as a successor Trustee under Section 6.11 and no notice
to Noteholders of the appointment of any co-trustee or separate trustee shall be
required under Section 6.08 hereof.

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

                  (i) all rights, powers, duties and obligations conferred or
         imposed upon the Trustee shall be conferred or imposed upon and
         exercised or performed by the 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 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 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
         Trustee;

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

                  (iii) the 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 Trustee
shall be deemed to have been given to each of the then separate trustees and
co-trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Agreement and
the conditions of this Article VI. Each separate trustee and co-trustee, upon
its acceptance of the trusts conferred, shall be vested with the estates or
property specified in its instrument of appointment, either jointly with the
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 Trustee. Every such instrument shall be filed with the Trustee.

                  (d) Any separate trustee or co-trustee may at any time
constitute the Trustee, its agent or attorney-in-fact with full power and
authority, to the extent not prohibited by law, to do any

                                     - 52 -
<PAGE>   59
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 Trustee, to the extent permitted by
law, without the appointment of a new or successor trustee.

                  SECTION 6.11. Eligibility; Disqualification. The Trustee shall
at all times satisfy the requirements of TIA Section 310(a). The 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. The Trustee shall comply with
TIA Section 310(b), including the optional provision permitted by the second
sentence of TIA Section 310(b)(9); provided, however, that there shall be
excluded from the operation of TIA Section 310(b)(1) any indenture or indentures
under which other securities of the Issuer are outstanding if the requirements
for such exclusion set forth in TIA Section 310(b)(1) are met.

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

                                   ARTICLE VII

                         NOTEHOLDERS' LISTS AND REPORTS

                  SECTION 7.01. Issuer To Furnish Trustee Names and Addresses to
Noteholders. The Issuer will furnish or cause to be furnished to the Trustee (a)
not more than five days after the earlier of (i) each Record Date and (ii) three
months after the last Record Date, a list, in such form as the Trustee may
reasonably require, of the names and addresses of the Holders of Notes as of
such Record Date, and (b) at such other times as the Trustee may request in
writing, within 30 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 Trustee is the
Note Registrar, no such list shall be required to be furnished.

                  SECTION 7.02. Preservation of Information; Communications to
Noteholders.

                  (a) The 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 Trustee as provided in
Section 7.01 and the names and addresses of Holders of Notes received by the
Trustee in its capacity as Note Registrar. The Trustee may destroy any list
furnished to it as provided in such Section 7.01 upon receipt of a new list so
furnished.

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

                                     - 53 -
<PAGE>   60
                  (c) The Issuer, the Trustee and the Note Registrar shall have
the protection of TIA Section 312(c).

                  SECTION 7.03. Reports by Issuer.

                  (a) The Issuer shall:

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

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

                  SECTION 7.04. Reports by Trustee. If required by TIA Section
313(a), within 60 days after each March 31, beginning with March 31, 2001, the
Trustee shall mail to each Noteholder as required by TIA Section 313(c) a brief
report dated as of such date that complies with TIA Section 313(a). The Trustee
also shall comply with TIA Section 313(b).

                  A copy of each report at the time of its mailing to
Noteholders shall be filed by the Trustee with the Commission and each stock
exchange, if any, on which the Notes are listed. The Issuer shall notify the
Trustee if and when the Notes are listed on any stock exchange.

                                     - 54 -
<PAGE>   61

                                  ARTICLE VIII

                      ACCOUNTS, DISBURSEMENTS AND RELEASES

                  SECTION 8.01. Collection of Money. Except as otherwise
expressly provided herein, the 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 Trustee pursuant to this Indenture as instructed in writing
by the Servicer. The 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 this Indenture or the Notes,
the Trustee may take such action as may be appropriate to enforce such payment
or performance, including the institution and prosecution of appropriate
Proceedings. Any such action shall be without prejudice to any right to claim a
Default or Event of Default under this Indenture and any right to proceed
thereafter as provided in Article V.

                  SECTION 8.02. Trust Accounts.

                  (a) On or prior to the Closing Date, the Issuer shall cause
the Servicer to establish and maintain, in the name of the Trustee, for the
benefit of the Noteholders, the Trust Accounts as provided in Section 4.1 of the
Sale and Servicing Agreement.

                  (b) On each Payment Date and Redemption Date except following
an Event of Default and an acceleration of the Notes pursuant to Section 5.02,
the Trustee shall distribute all amounts on deposit in the Note Interest
Distribution Account to Noteholders in respect of the Notes to pay all accrued
and unpaid interest on the Notes in the following amounts and in the following
order of priority as directed in writing by the Servicer:

                  (i) accrued and unpaid interest on the Class A Notes, provided
         that if funds in the Note Interest Distribution Account are not
         sufficient to pay the entire amount of accrued but unpaid interest on
         each class of Class A Notes, the amount in the Note Interest
         Distribution Account shall be applied to the payment of such interest
         on each class of Class A Notes pro rata on the basis of the amount of
         accrued and unpaid interest on each class of Class A Notes;

                  (ii) accrued and unpaid interest on the Class M Notes; and

                  (iii) accrued and unpaid interest on the Class B Notes;

                  (c) On each Payment Date and Redemption Date except following
an Event of Default and an acceleration of the Notes pursuant to Section 5.02,
the Trustee shall distribute all

                                     - 55 -
<PAGE>   62
amounts in the Principal Distribution Account in the following amounts and in
the following order of priority as directed in writing by the Servicer:

                  (i) to the Holders of the Class A-1 Notes in reduction of the
         Outstanding Amount of the Class A-1 Notes until the Outstanding Amount
         of the Class A-1 Notes is reduced to zero;

                  (ii) to the Holders of the Class A-2 Notes in reduction of the
         Outstanding Amount of the Class A-2 Notes until the Outstanding Amount
         of the Class A-2 Notes is reduced to zero;

                  (iii) to the Holders of the Class A-3 Notes in reduction of
         the Outstanding Amount of the Class A-3 Notes until the Outstanding
         Amount of the Class A-3 Notes is reduced to zero;

                  (iv) to the Holders of the Class M Notes in reduction of the
         Outstanding Amount of the Class M Notes until the Outstanding Amount of
         the Class M Notes is reduced to zero; and

                  (v) to the Holders of the Class B Notes in reduction of the
         Outstanding Amount of the Class B Notes until the Outstanding Amount of
         the Class B Notes is reduced to zero;

                  (vi) to the Certificate Distribution Account for distribution
         to the Certificateholder.

                  SECTION 8.03. 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 Trust Accounts
shall be invested and reinvested in Eligible Investments in accordance with the
provisions of Section 4.1(f) of the Sale and Servicing Agreement. All income or
other gain from investments of monies deposited in the Trust Accounts, net of
losses, shall be deposited (or caused to be deposited) by the Trustee in the
Collection Account; provided, however, that all income or other gain from
investments of monies deposited in the Reserve Account, net of losses, shall be
deposited in the Reserve Account. The Issuer will not direct the Trustee to make
any investment of any funds or to sell any investment held in any of the Trust
Accounts unless the security interest granted and perfected in such accounts
will 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 Trustee to make any such investment or sale, if requested
by the Trustee, the Issuer shall deliver to the Trustee an Opinion of Counsel,
acceptable to the Trustee, to such effect.

                  (b) If (i) the Issuer shall have failed to give investment
directions for any funds on deposit in the Trust Accounts to the Trustee by
11:00 a.m. Eastern Time (or such other time as may be

                                     - 56 -
<PAGE>   63
agreed by the Issuer and 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
5.02, or (iii) 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 5.06 as if there had not been such
a declaration; then the Trustee shall, to the fullest extent practicable, invest
and reinvest funds in the Trust Accounts in one or more investments under clause
(f) of the definition of Eligible Investments.

                  (c) Subject to Section 6.01(c), the Trustee shall not in any
way be held liable by reason of any insufficiency in any of the Trust Accounts
resulting from any loss on any Eligible Investment included therein except for
losses attributable to the Trustee's failure to make payments on such Eligible
Investments issued by the Trustee, in its commercial capacity as principal
obligor and not as Trustee, in accordance with their terms.

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

                  SECTION 9.01. Supplemental Indentures Without Consent of
Noteholders.

                  (a) Without the consent of the Holders of any Notes and with
prior notice to the Rating Agencies, the Issuer and the 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 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 Trustee any property subject or required to
         be subjected to the Lien created by this Indenture, or to subject to
         the Lien created by this Indenture additional property;

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

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

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

                                     - 57 -
<PAGE>   64

                  (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 to make any other provisions with respect to matters or
         questions arising under this Indenture or in any supplemental
         indenture; provided that such action shall not adversely affect the
         interests of the Holders of the Notes;

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

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

                  The 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 Trustee, when authorized by an Issuer
Order, may, also without the consent of any of the Holders of the Notes and with
prior notice to the Rating Agencies, enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to, or changing in
any manner or eliminating any of the provisions of, this Indenture or of
modifying in any manner the rights of the Holders of the Notes under this
Indenture; provided, however, that such action shall not, as evidenced by an
Opinion of Counsel, adversely affect in any material respect the interests of
any Noteholder; and provided, further, that any amendment within the scope of
Section 9.02(i)-(vii) below shall be deemed to materially and adversely affect
the interests of the Noteholders.

                  SECTION 9.02. Supplemental Indentures With Consent of
Noteholders. The Issuer and the 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 each class of
Notes, by Act of such Holders delivered to the Issuer and the Trustee, enter
into an indenture or indentures supplemental hereto for the purpose of adding
any provisions to, or changing in any manner or eliminating any of the
provisions of, this Indenture or of modifying in any manner the rights of the
Holders of the Notes under this Indenture; provided, however, that no such
supplemental indenture shall, without the consent of the Holder of each
Outstanding Note affected thereby:

                  (i) change the date of payment of any installment of principal
         of or interest on any Note, or reduce the principal amount thereof, the
         interest rate thereon or the Redemption Price

                                     - 58 -
<PAGE>   65
         with respect thereto, change the provision of this Indenture relating
         to the application of collections on, or the proceeds of the sale of,
         the Trust Estate to payment of principal of or interest on the Notes,
         or change any place of payment where, or the coin or currency in which,
         any Note or the interest thereon is payable, or impair the right to
         institute suit for the enforcement of the provisions of this Indenture
         requiring the application of funds available therefor, as provided in
         Article V, to the payment of any such amount due on the Notes on or
         after the respective due dates thereof (or, in the case of redemption,
         on or after the Redemption Date);

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

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

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

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

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

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

                  The Trustee may in its discretion determine whether or not any
Notes would be affected by any supplemental indenture, and any such
determination shall be conclusive upon the

                                     - 59 -
<PAGE>   66
Holders of all Notes, whether theretofore or thereafter authenticated and
delivered hereunder. The Trustee shall not be liable for any such determination
made in good faith.

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

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

                  SECTION 9.03. Execution of Supplemental Indentures. In
executing, or permitting the additional trusts created by, any supplemental
indenture permitted by this Article IX or the modifications thereby of the
trusts created by this Indenture, the Trustee shall be entitled to receive, and
subject to Sections 6.01 and 6.02 shall be fully protected in relying upon, an
Opinion of Counsel (which shall not be at the expense of the Trustee) stating
that the execution of such supplemental indenture is authorized or permitted by
this Indenture. The Trustee may, but shall not be obligated to, enter into any
such supplemental indenture that affects the Trustee's own rights, duties,
liabilities or immunities under this Indenture or otherwise.

                  SECTION 9.04. 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 Trustee, the Issuer and the Holders of the Notes shall
thereafter be determined, exercised and enforced hereunder subject in all
respects to such modifications and amendments, and all the terms and conditions
of any such supplemental indenture shall be and be deemed to be part of the
terms and conditions of this Indenture for any and all purposes.

                  SECTION 9.05. Conformity With Trust Indenture Act. Every
amendment of this Indenture and every supplemental indenture executed pursuant
to this Article IX shall conform to the requirements of the Trust Indenture Act
as then in effect so long as this Indenture shall then be qualified under the
Trust Indenture Act.

                  SECTION 9.06. 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 Trustee shall,
bear a notation in form approved by the Trustee as to any matter provided for in
such supplemental indenture. If the Issuer or the Trustee shall so determine,
new

                                     - 60 -
<PAGE>   67
notes so modified as to conform, in the opinion of the Trustee and the Issuer,
to any such supplemental indenture may be prepared and executed by the Issuer
and authenticated and delivered by the Trustee in exchange for Outstanding
Notes.

                                    ARTICLE X

                               REDEMPTION OF NOTES

                  SECTION 10.01. Redemption. In the event that the Servicer
pursuant to Section 9.1(a) of the Sale and Servicing Agreement purchases the
corpus of the Trust, the Notes are subject to redemption in whole, but not in
part, on the Payment Date on which such repurchase occurs, for a purchase price
equal to the Redemption Price; provided, however, that the Issuer has available
funds sufficient to pay the Redemption Price. The Seller, the Servicer or the
Issuer shall furnish the Trustee, Owner Trustee and the Rating Agencies with
written notice of such redemption. If the Notes are to be redeemed pursuant to
this Section 10.01, the Servicer or the Issuer shall furnish notice of such
election to the Trustee not later than 25 days prior to the Redemption Date, and
the Issuer shall deposit with the Trustee in the Note Interest Distribution
Account and the Principal Distribution Account the Redemption Price of the Notes
to be redeemed, whereupon all such Notes shall be due and payable on the
Redemption Date upon the furnishing of a notice complying with Section 10.02 to
each Holder of the Notes.

                  SECTION 10.02. Form of Redemption Notice. Notice of redemption
under Section 10.01 shall be given by the Trustee by first-class mail, postage
prepaid, mailed not less than five days prior to the applicable Redemption Date
to each Holder of Notes, as of the close of business on the Record Date with
respect to the Payment Date immediately preceding the applicable Redemption
Date, at such Holder's address appearing in the Note Register.

                  All notices of redemption shall state:

                  (i) the Redemption Date;

                  (ii) the Redemption Price; and

                  (iii) the place where such Notes are to be surrendered for
         payment of the Redemption Price (which shall be the office or agency of
         the Issuer to be maintained as provided in Section 3.02).

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

                                     - 61 -
<PAGE>   68

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

                                   ARTICLE XI

                                  MISCELLANEOUS

                  SECTION 11.01. Compliance Certificates and Opinions, etc.

                  (a) Upon any application or request by the Issuer to the
Trustee to take any action under any provision of this Indenture, the Issuer
shall furnish to the 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, except that, in the case of any such application or request as to
which the furnishing of such documents is specifically required by any provision
of this Indenture, no additional certificate or opinion need be furnished.

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

                  (i) a statement that each signatory of such certificate or
         opinion has read or has caused to be read such covenant or condition
         and the definitions herein relating thereto;

                  (ii) a brief statement as to the nature and scope of the
         examination or investigation upon which the statements or opinions
         contained in such certificate or opinion are based;

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

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

                                     - 62 -
<PAGE>   69

                  (b) (i) Prior to the deposit of any Collateral or other
         property or securities with the Trustee that is to be made the basis
         for the release of any property subject to the Lien created by this
         Indenture, the Issuer shall, in addition to any obligation imposed in
         Section 11.01(a) or elsewhere in this Indenture, furnish to the 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 Trustee
         an Officer's Certificate certifying or stating the opinion of any
         signer thereof as to the matters described in clause (i) above, the
         Issuer shall also deliver to the Trustee an Independent Certificate as
         to the same matters, if the fair value to the Issuer of the property to
         be so deposited and of all other such property made the basis of any
         such withdrawal or release since the commencement of the then-current
         fiscal year of the Issuer, as set forth in the certificates delivered
         pursuant to clause (i) above and this clause (ii), is 10% or more of
         the Outstanding Amount of the Notes, but such a certificate need not be
         furnished with respect to any property 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 any release described in
         clause (A) or (B) of Section 11.01(b)(v), whenever any property or
         securities are to be released from the Lien created by this Indenture,
         the Issuer shall also furnish to the Trustee an Officer's Certificate
         certifying or stating the opinion of each person signing such
         certificate as to the fair value (within 90 days of such release) of
         the property or securities proposed to be released and stating that in
         the opinion of such person the proposed release will not impair the
         security created by this Indenture in contravention of the provisions
         hereof.

                  (iv) Whenever the Issuer is required to furnish to the Trustee
         an Officer's Certificate certifying or stating the opinion of any
         signer thereof as to the matters described in clause (iii) above, the
         Issuer shall also furnish to the Trustee an Independent Certificate as
         to the same matters if the fair value of the property or securities and
         of all other property or securities (other than property described in
         clauses (A) or (B) of Section 11.01(b)(v)) released from the lien
         created by this Indenture since the commencement of the then current
         fiscal year, as set forth in the certificates required by clause (iii)
         above and this clause (iv), equals 10% or more of the Outstanding
         Amount of the Notes, but such certificate need not be furnished in the
         case of any release of property or securities if the fair value thereof
         as set forth in the related Officer's Certificate is less than $25,000
         or less than one percent of the then Outstanding Amount of the Notes.

                  (v) Notwithstanding any other provision of this Section, the
         Issuer may, without compliance with the other provisions of this
         Section (A) collect, liquidate, sell or otherwise

                                     - 63 -
<PAGE>   70
         dispose of Receivables as and to the extent permitted or required by
         the Related Documents (including as provided in Section 3.1 of the Sale
         and Servicing Agreement) and (B) make cash payments out of the Trust
         Accounts as and to the extent permitted or required by the Related
         Documents.

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

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

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

                  Whenever in this Indenture, in connection with any application
or certificate or report to the 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 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.

                                     - 64 -
<PAGE>   71
                  SECTION 11.03. Acts of Noteholders.

                  (a) Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Indenture to be given or taken
by Noteholders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Noteholders in person or by agents
duly appointed in writing; and except as herein otherwise expressly provided,
such action shall become effective when such instrument or instruments are
delivered to the Trustee, and, where it is hereby expressly required, to the
Issuer. Such instrument or instruments (and the action embodied therein and
evidenced thereby) are herein sometimes referred to as the "Act" of the
Noteholders signing such instrument or instruments.

Proof of execution of any such instrument or of a writing appointing any such
agent shall be sufficient for any purpose of this Indenture and (subject to
Section 6.01) conclusive in favor of the Trustee and the Issuer, if made in the
manner provided in this Section.

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

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

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

                  SECTION 11.04. Notices, etc., to Trustee, Issuer and Rating
Agencies. Any request, demand, authorization, direction, notice, consent, waiver
or Act of Noteholders or other documents provided or permitted by this Indenture
to be made upon, given or furnished to or filed with:

                  (a) the 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 Trustee at its Corporate Trust Office,

                  (b) the Issuer by the Trustee or by any Noteholder shall be
         sufficient for every purpose hereunder if in writing and mailed,
         first-class, postage prepaid, to the Issuer addressed to: Associates
         Automobile Receivables Trust 2000-1, in care of Wilmington Trust
         Company, as Owner Trustee, Rodney Square North, 1100 North Market
         Street, Wilmington, Delaware 19890, Attention: Corporate Trust
         Administration, or at any other address previously furnished in writing
         to the Trustee by Issuer. The Issuer shall promptly transmit any notice
         received by it from the Noteholders to the Trustee.

                                     - 65 -
<PAGE>   72

                  Notices required to be given to the Rating Agencies by the
         Issuer, the Trustee or the Owner Trustee shall be in writing,
         personally delivered or mailed by certified mail, return receipt
         requested to (i) in the case of Moody's, at the following address:
         Moody's Investors Service, Inc., ABS Monitoring Department, 99 Church
         Street, New York, New York 10007 and (ii) in the case of Standard &
         Poor's, at the following address: Standard & Poor's Ratings Services,
         55 Water Street, New York, New York 10041, Attention: Asset Backed
         Surveillance Department; or as to each of the foregoing, at such other
         address as shall be designated by written notice to the other parties.

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

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

                  In case, by reason of the suspension of regular mail service
as a result of a strike, work stoppage or similar activity, it shall be
impractical to mail notice of any event of 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 Trustee shall be
deemed to be a sufficient giving of such notice.

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

                  SECTION 11.06. Alternate Payment and Notice Provisions.
Notwithstanding any provision of this Indenture or any of the Notes to the
contrary, the Issuer may enter into any agreement with any Holder of a Note
providing for a method of payment, or notice by the Trustee or any Paying Agent
to such Holder, that is different from the methods provided for in this
Indenture for such

                                     - 66 -
<PAGE>   73
payments or notices. The Issuer will furnish to the Trustee a copy of each such
agreement and the Trustee will cause payments to be made and notices to be given
in accordance with such agreements.

                  SECTION 11.07. Conflict with Trust Indenture Act. If any
provision hereof limits, qualifies or conflicts with another provision hereof
that is required to be included in this indenture by any of the provisions of
the Trust Indenture Act, such required provision shall control.

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

                  SECTION 11.08. 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 11.09. Successors and Assigns. All covenants and
agreements in this Indenture and the Notes by the Issuer shall bind its
successors and assigns, whether so expressed or not. All agreements of the
Trustee in this Indenture shall bind its successors.

                  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 the Noteholders, and
any other party secured hereunder, and any other Person with an ownership
interest in any part of the Trust Estate, any benefit or any legal or equitable
right, remedy or claim under this Indenture.

                  SECTION 11.12. Legal Holidays. In any case where the date on
which any payment is due shall not be a Business Day, then (notwithstanding any
other provision of the Notes or this Indenture) payment need not be made on such
date, but may be made on the next succeeding Business Day with the same force
and effect as if made on the date on which nominally due, and no interest shall
accrue for the period from and after any such nominal date.

                  SECTION 11.13. 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.

                                     - 67 -
<PAGE>   74

                  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.

                  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 Trustee or any other counsel reasonably
acceptable to the 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 Trustee under this
Indenture.

                  SECTION 11.16. Trust Obligation. No recourse may be taken,
directly or indirectly, with respect to the obligations of the Issuer, the Owner
Trustee or the Trustee on the Notes or under this Indenture or any certificate
or other writing delivered in connection herewith or therewith, against (i) the
Trustee or the Owner Trustee in its individual capacity, (ii) any owner of a
beneficial interest in the Issuer or (iii) any partner, owner, beneficiary,
agent, officer, director, employee or agent of the Trustee or the Owner Trustee
in its individual capacity, any holder of a beneficial interest in the Issuer,
the Owner Trustee or the Trustee or of any successor or assign of the Trustee or
the Owner Trustee in its individual capacity, except as any such Person may have
expressly agreed (it being understood that the 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 installment 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 Trustee, by entering into this
Indenture, and each Noteholder, by accepting a Note, hereby covenant and agree
that they will not at any time institute against the Seller or the Issuer, or
join in any institution against the Seller or the Issuer of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States Federal or state bankruptcy or similar law
in connection with any obligations relating to the Notes, this Indenture or any
of the Related Documents.

                  SECTION 11.18. Inspection. The Issuer agrees that, on
reasonable prior notice, it will permit any representative of the 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
Trustee shall and shall cause its representatives to hold in confidence all

                                     - 68 -
<PAGE>   75
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 Trustee may reasonably determine that such disclosure is
consistent with its obligations hereunder.

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

                  SECTION 11.20. No Substantive Review of Compliance Documents.
Other than as set forth in this Agreement, any reports, information or other
documents provided to the Trustee are for purposes only of enabling the sending
party to comply with its document delivery requirements hereunder, and such
party's receipt of any such information shall not constitute actual or
constructive notice of any information contained therein or determinable from
any information contained therein, including the Issuer's, the Seller's or the
Servicer's compliance with any of its covenants, representations or warranties
hereunder.

                                     - 69 -
<PAGE>   76

                  IN WITNESS WHEREOF, the Issuer and the 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.

                           ASSOCIATES AUTOMOBILE RECEIVABLES
                              TRUST 2000-1

                           By WILMINGTON TRUST COMPANY
                              not in its individual capacity but solely as Owner
                              Trustee under the Trust Agreement

                           By:  /s/ Anita Dallago
                              ---------------------------
                              Name: Anita Dallago
                              Title: Financial Services Officer

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

                           By:  /s/ Barbara G. Grosse
                              ---------------------------
                              Name: Barbara G. Grosse
                              Title: Vice President and Assistant Secretary

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