Document:

<PAGE>

                                                                     Exhibit 4.2

                                                                [EXECUTION COPY]

                         CARMAX AUTO OWNER TRUST 2002-1,
                                   as Issuer,

                                       and

                WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION,
                              as Indenture Trustee

                     _______________________________________

                                    INDENTURE
                            Dated as of June 1, 2002

                     ________________________________________

                 $110,000,000 1.89% Class A-1 Asset-Backed Notes
                 $126,000,000 2.64% Class A-2 Asset-Backed Notes
                 $159,000,000 3.59% Class A-3 Asset-Backed Notes
                 $107,361,000 4.23% Class A-4 Asset-Backed Notes

<PAGE>

                            CROSS REFERENCE TABLE (1)

  TIA                                                                  Indenture
Section                                                                 Section
-------                                                                 -------

310  (a)(1) .......................................................       6.11
     (a)(2) .......................................................       6.11
     (a)(3) .......................................................       6.10
     (a)(4) .......................................................       N.A.
     (a)(5) .......................................................       6.11
     (b) ......................................................       6.8;6.11
     (c) ..........................................................       N.A.
311  (a) ..........................................................       6.12
     (b) ..........................................................       6.12
     (c) ..........................................................       N.A.
312  (a) ..........................................................        7.1
     (b) ..........................................................        7.2
     (c) ..........................................................        7.2
313  (a) ..........................................................        7.4
     (b)(1) .......................................................        7.4
     (b)(2) ...................................................       7.4;11.5
     (c) ..........................................................        7.4
     (d) ..........................................................        7.3
314  (a) ..........................................................        7.3
     (b) .........................................................       11.15
     (c)(1) .......................................................       11.1
     (c)(2) .......................................................       11.1
     (c)(3) .......................................................       11.1
     (d) ..........................................................       11.1
     (e) ..........................................................       11.1
     (f) ..........................................................       11.1
315  (a) ..........................................................        6.1
     (b) ......................................................       6.5;11.5
     (c) ..........................................................        6.1
     (d) ..........................................................        6.1
     (e) ..........................................................       5.13
316  (a)(last sentence) ...........................................        1.1
     (a)(1)(A) ....................................................       5.11
     (a)(1)(B) ....................................................       5.12
     (a)(2) .......................................................       N.A.
     (b) ..........................................................       5.7
     (c) ..........................................................       N.A.
317  (a)(1) .......................................................       5.3
     (a)(2) .......................................................       5.3
     (b) ..........................................................       3.3
318  (a) ..........................................................      11.7
______________________

(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.

                                       i

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                           Page
                                                                           ----
<S>                                                                       <C>
                                    ARTICLE I
                   DEFINITIONS AND INCORPORATION BY REFERENCE

SECTION 1.1   Definitions ..............................................    2
SECTION 1.2   Incorporation by Reference of Trust Indenture
              Act ......................................................   11
SECTION 1.3   Rules of Construction ....................................   11

                               ARTICLE II
                                THE NOTES

SECTION 2.1   Form .....................................................   12
SECTION 2.2   Execution, Authentication and Delivery ...................   13
SECTION 2.3   Temporary Notes ..........................................   13
SECTION 2.4   Tax Treatment ............................................   14
SECTION 2.5   Registration; Registration of Transfer and Exchange ......   14
SECTION 2.6   Mutilated, Destroyed, Lost or Stolen Notes ...............   15
SECTION 2.7   Persons Deemed Owners ....................................   16
SECTION 2.8   Payments .................................................   16
SECTION 2.9   Cancellation .............................................   20
SECTION 2.10  Release of Collateral ....................................   20
SECTION 2.11  Book-Entry Notes .........................................   20
SECTION 2.12  Notices to Clearing Agency ...............................   21
SECTION 2.13  Definitive Notes .........................................   21
SECTION 2.14  Authenticating Agents ....................................   22

                               ARTICLE III
                                COVENANTS

SECTION 3.1   Payment of Principal and Interest ........................   22
SECTION 3.2   Maintenance of Office or Agency ..........................   22
SECTION 3.3   Money for Payments To Be Held in Trust ...................   23
SECTION 3.4   Existence ................................................   24
SECTION 3.5   Protection of Trust Estate ...............................   24
SECTION 3.6   Opinions as to Trust Estate ..............................   25
SECTION 3.7   Performance of Obligations; Servicing of Receivables .....   25
SECTION 3.8   Negative Covenants .......................................   27
SECTION 3.9   Annual Statement as to Compliance ........................   28
SECTION 3.10  Issuer May Consolidate, etc., Only on Certain Terms ......   28
SECTION 3.11  Successor or Transferee ..................................   30
SECTION 3.12  No Other Business ........................................   30
SECTION 3.13  No Borrowing .............................................   30
SECTION 3.14  Servicer's Obligations ...................................   31
SECTION 3.15  Guarantees, Loans, Advances and Other Liabilities ........   31
</TABLE>

                                       i

<PAGE>

<TABLE>
<S>                                                                            <C>
SECTION 3.16  Capital Expenditures ........................................... 31
SECTION 3.17  Restricted Payments ............................................ 31
SECTION 3.18  Notice of Events of Default .................................... 31
SECTION 3.19  Removal of Administrator ....................................... 31
SECTION 3.20  Further Instruments and Acts ................................... 31

                                   ARTICLE IV
                           SATISFACTION AND DISCHARGE

SECTION 4.1   Satisfaction and Discharge of Indenture ........................ 32
SECTION 4.2   Satisfaction, Discharge and Defeasance of the Notes ............ 33
SECTION 4.3   Application of Trust Money ..................................... 34
SECTION 4.4   Repayment of Monies Held by Paying Agent ....................... 34

                                    ARTICLE V
                                    REMEDIES

SECTION 5.1   Events of Default .............................................. 34
SECTION 5.2   Acceleration of Maturity; Rescission and Annulment ............. 36
SECTION 5.3   Collection of Indebtedness and Suits for Enforcement
              by  Indenture Trustee .......................................... 37
SECTION 5.4   Remedies ....................................................... 39
SECTION 5.5   Optional Preservation of the Receivables ....................... 40
SECTION 5.6   Limitation of Suits ............................................ 41
SECTION 5.7   Unconditional Rights of Noteholders to Receive Principal
              and Interest ................................................... 42
SECTION 5.8   Restoration of Rights and Remedies ............................. 42
SECTION 5.9   Rights and Remedies Cumulative ................................. 42
SECTION 5.10  Delay or Omission Not a Waiver ................................. 42
SECTION 5.11  Control by Noteholders ......................................... 42
SECTION 5.12  Waiver of Past Defaults ........................................ 43
SECTION 5.13  Undertaking for Costs .......................................... 43
SECTION 5.14  Waiver of Stay or Extension Laws ............................... 44
SECTION 5.15  Action on Notes ................................................ 44
SECTION 5.16  Performance and Enforcement of Certain Obligations ............. 44

                                   ARTICLE VI
                              THE INDENTURE TRUSTEE

SECTION 6.1   Duties of Indenture Trustee .................................... 46
SECTION 6.2   Rights of Indenture Trustee .................................... 47
SECTION 6.3   Individual Rights of Indenture Trustee ......................... 48
SECTION 6.4   Indenture Trustee's Disclaimer ................................. 48
SECTION 6.5   Notice of Defaults ............................................. 48
SECTION 6.6   Reports by Indenture Trustee to Holders ........................ 48
SECTION 6.7   Compensation and Indemnity ..................................... 48
SECTION 6.8   Replacement of Indenture Trustee ............................... 49
SECTION 6.9   Successor Indenture Trustee by Merger .......................... 50
</TABLE>

                                       ii

<PAGE>

<TABLE>
<S>                                                                             <C>
SECTION 6.10  Appointment of Co-Indenture Trustee or Separate
              Indenture Trustee .............................................   50
SECTION 6.11  Eligibility; Disqualification .................................   52
SECTION 6.12  Preferential Collection of Claims Against Issuer ..............   52

                                   ARTICLE VII
                         NOTEHOLDERS' LISTS AND REPORTS

SECTION 7.1   Issuer To Furnish Indenture Trustee Names and Addresses
              of Noteholders ................................................   52
SECTION 7.2   Preservation of Information; Communications to Noteholders ....   52
SECTION 7.3   Reports by Issuer .............................................   52
SECTION 7.4   Reports by Indenture Trustee ..................................   53

                                  ARTICLE VIII
                      ACCOUNTS, DISBURSEMENTS AND RELEASES

SECTION 8.1   Collection of Money ...........................................   53
SECTION 8.2   Trust Accounts ................................................   54
SECTION 8.3   General Provisions Regarding Accounts .........................   54
SECTION 8.4   Release of Trust Estate .......................................   55
SECTION 8.5   Opinion of Counsel ............................................   55

                                   ARTICLE IX
                             SUPPLEMENTAL INDENTURES

SECTION 9.1   Supplemental Indentures Without Consent of Noteholders ........   56
SECTION 9.2   Supplemental Indentures with Consent of Noteholders ...........   57
SECTION 9.3   Execution of Supplemental Indentures ..........................   58
SECTION 9.4   Effect of Supplemental Indenture ..............................   58
SECTION 9.5   Conformity with Trust Indenture Act ...........................   59
SECTION 9.6   Reference in Notes to Supplemental Indentures .................   59

                                    ARTICLE X
                               REDEMPTION OF NOTES

SECTION 10.1  Redemption ....................................................   59
SECTION 10.2  Form of Redemption Notice .....................................   60
SECTION 10.3  Notes Payable on Redemption Date ..............................   60

                                   ARTICLE XI
                                  MISCELLANEOUS

SECTION 11.1  Compliance Certificates and Opinions, etc. ....................   60
SECTION 11.2  Form of Documents Delivered to Indenture Trustee ..............   62
SECTION 11.3  Acts of Noteholders ...........................................   63
SECTION 11.4  Notices, etc., to Indenture Trustee, Issuer and
              Rating Agencies ...............................................   63
SECTION 11.5  Notices to Noteholders; Waiver ................................   64
</TABLE>

                                      iii

<PAGE>

<TABLE>
<S>                                                                           <C>
SECTION 11.6      Alternate Payment and Notice Provisions ..................  65
SECTION 11.7      Conflict with Trust Indenture Act ........................  65
SECTION 11.8      Effect of Headings and Table of Contents .................  65
SECTION 11.9      Successors and Assigns ...................................  65
SECTION 11.10     Severability .............................................  65
SECTION 11.11     Benefits of Indenture ....................................  65
SECTION 11.12     Legal Holiday ............................................  65
SECTION 11.13     GOVERNING LAW ............................................  65
SECTION 11.14     Counterparts .............................................  66
SECTION 11.15     Recording of Indenture ...................................  66
SECTION 11.16     Trust Obligation .........................................  66
SECTION 11.17     No Petition ..............................................  66
SECTION 11.18     Inspection ...............................................  66
SECTION 11.19     Certain Matters Regarding the Insurer ....................  67
SECTION 11.20     Third-Party Beneficiaries ................................  67
</TABLE>

Exhibit A-1   Form of Class A-1 Note
Exhibit A-2   Form of Class A-2 Note
Exhibit A-3   Form of Class A-3 Note
Exhibit A-4   Form of Class A-4 Note
Exhibit B     Form of Opinion of Counsel

                                       iv

<PAGE>

         INDENTURE, dated as of June 1, 2002 (as amended, supplemented or
otherwise modified and in effect from time to time, this "Indenture"), between
CARMAX AUTO OWNER TRUST 2002-1, a Delaware statutory business trust (the
"Issuer"), and WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION, a national
banking association, not in its individual capacity but solely as indenture
trustee (in such capacity, the "Indenture Trustee").

         Each party agrees as follows for the benefit of the other party and for
the equal and ratable benefit of the holders of the Issuer's 1.89% Class A-1
Asset-Backed Notes (the "Class A-1 Notes"), 2.64% Class A-2 Asset-Backed Notes
(the "Class A-2 Notes"), 3.59% Class A-3 Asset-Backed Notes (the "Class A-3
Notes") and 4.23% Class A-4 Asset-Backed Notes (the "Class A-4 Notes" and,
collectively with the Class A-1 Notes, the Class A-2 Notes and the Class A-3
Notes, the "Notes"):

                                 GRANTING CLAUSE

         The Issuer hereby Grants to the Indenture Trustee on the Closing Date,
as Indenture Trustee for the benefit of the Holders of the Notes, all of the
Issuer's right, title and interest in, to and under, whether now owned or
existing or hereafter acquired or arising (i) the Receivables; (ii) all amounts
received on or in respect of the Receivables after the Cutoff Date; (iii) the
security interests in the Financed Vehicles granted by the Obligors pursuant to
the Receivables; (iv) all proceeds from claims on or refunds of premiums with
respect to any physical damage, theft, credit life or credit disability
insurance policies relating to the Financed Vehicles or the Obligors; (v) the
Receivable Files; (vi) the Collection Account, the Note Payment Account and the
Reserve Account and all amounts, securities, financial assets, investments and
other property deposited in or credited to any of the foregoing and all proceeds
thereof; (vii) all rights of the Depositor under the Receivables Purchase
Agreement, including the right to require the Seller to repurchase Receivables
from the Depositor; (viii) all rights of the Issuer under the Sale and Servicing
Agreement, including the right to require the Servicer to purchase Receivables
from the Issuer; and (ix) all present and future claims, demands, causes of
action and choses in action in respect of any or all of the foregoing and all
payments on or under and all proceeds of every kind and nature whatsoever in
respect of any or all of the foregoing, including all proceeds of the conversion
thereof, voluntary or involuntary, into cash or other liquid property, all
accounts, general intangibles, chattel paper, instruments, documents, money,
investment property, deposit accounts, letters of credit, letter-of-credit
rights, insurance proceeds, condemnation awards, rights to payment of any and
every kind and other forms of obligations and all other property which at any
time constitutes all or part of or is included in the proceeds of any of the
foregoing (collectively, the "Collateral").

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

         The Indenture Trustee, as Indenture Trustee on behalf of the Holders of
the Notes, acknowledges such Grant, accepts the trusts under this Indenture in
accordance with the provisions of this Indenture and agrees to perform its
duties required in this Indenture to the best

<PAGE>

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 1.1 Definitions.

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

         "Accrual Period" shall mean (i) in the case of the Class A-1 Notes,
each period from and including a Distribution Date to but excluding the
following Distribution Date (or, in the case of the initial Accrual Period, the
period from and including the Closing Date to but excluding the initial
Distribution Date) and (ii) in the case of the Class A-2 Notes, the Class A-3
Notes and the Class A-4 Notes, each period from and including the 15th day of a
month to but excluding the 15th day of the following month (or, in the case of
the initial Accrual Period, the period from and including the Closing Date to
but excluding the initial Distribution Date).

         "Act" shall have the meaning specified in Section 11.3(a).

         "Administration Agreement" shall mean the Administration Agreement,
dated as of June 1, 2002, by and among the Administrator, the Issuer and the
Indenture Trustee, as amended, supplemented or otherwise modified and in effect
from time to time.

         "Administrator" shall mean CarMax, or any successor Administrator under
the Administration Agreement.

         "Authenticating Agent" shall have the meaning specified in Section
2.14.

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

         "Book-Entry Notes" shall mean a beneficial interest in the Notes,
ownership and transfers of which shall be made through book entries by a
Clearing Agency as described in Section 2.11.

         "Business Day" shall mean any day other than a Saturday, a Sunday or a
day on which banking institutions or trust companies in New York, New York,
Wilmington, Delaware, Minneapolis, Minnesota, Charlotte, North Carolina or
Richmond, Virginia are authorized or obligated by law, executive order or
governmental decree to remain closed.

                                       2

<PAGE>

         "CarMax" shall mean CarMax Auto Superstores, Inc., a Virginia
corporation, and its successors and assigns.

         "Certificate of Trust" shall have the meaning specified in the Trust
Agreement.

         "Class" shall mean a class of Notes, which may be the Class A-1 Notes,
the Class A-2 Notes, the Class A-3 Notes or the Class A-4 Notes.

         "Class A-1 Final Distribution Date" shall mean the June 2003
Distribution Date.

         "Class A-1 Noteholder" shall mean the Person in whose name a Class A-1
Note is registered on the Note Register.

         "Class A-1 Notes" shall mean the 1.89% Class A-1 Asset-Backed Notes
issued by the Issuer pursuant to this Indenture in the initial aggregate
principal amount of $110,000,000.

         "Class A-1 Rate" shall mean 1.89% per annum.

         "Class A-2 Final Distribution Date" shall mean the February 2005
Distribution Date.

         "Class A-2 Noteholder" shall mean the Person in whose name a Class A-2
Note is registered on the Note Register.

         "Class A-2 Notes" shall mean the 2.64% Class A-2 Asset-Backed Notes
issued by the Issuer pursuant to this Indenture in the initial aggregate
principal amount of $126,000,000.

         "Class A-2 Rate" shall mean 2.64% per annum.

         "Class A-3 Final Distribution Date" shall mean the June 2006
Distribution Date.

         "Class A-3 Noteholder" shall mean the Person in whose name a Class A-3
Note is registered on the Note Register.

         "Class A-3 Notes" shall mean the 3.59% Class A-3 Asset-Backed Notes
issued by the Issuer pursuant to this Indenture in the initial aggregate
principal amount of $159,000,000.

         "Class A-3 Rate" shall mean 3.59% per annum.

         "Class A-4 Final Distribution Date" shall mean the September 2007
Distribution Date.

         "Class A-4 Noteholder" shall mean the Person in whose name a Class A-4
Note is registered on the Note Register.

         "Class A-4 Notes" shall mean the 4.23% Class A-4 Asset-Backed Notes
issued by the Issuer pursuant to this Indenture in the initial aggregate
principal amount of $107,361,000.

         "Class A-4 Rate" shall mean 4.23% per annum.

                                       3

<PAGE>

         "Class Final Distribution Date" shall mean all or any of the Class A-1
Final Distribution Date, the Class A-2 Final Distribution Date, the Class A-3
Final Distribution Date and the Class A-4 Final Distribution Date as the context
requires.

         "Clearing Agency" shall mean an organization registered as a "clearing
agency" pursuant to Section 17A of the Exchange Act.

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

         "Closing Date" shall mean June 26, 2002.

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

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

         "Collection Period" shall mean each calendar month during the term of
this Agreement or, in the case of the initial Collection Period, the period from
but excluding the Cutoff Date to and including June 30, 2002.

         "Commission" shall mean the Securities and Exchange Commission, and its
successors.

         "Corporate Trust Office" shall mean the principal office of the
Indenture Trustee at which at any particular time its corporate trust business
shall be administered, which office at date of execution of this Indenture is
located at Wells Fargo Center, MAC #9311-161, Sixth and Marquette, Minneapolis,
Minnesota 55479, Attention: Asset Backed Securities Department, or at such other
address as the Indenture Trustee may designate from time to time by written
notice to the Noteholders and the Issuer, or the principal corporate trust
office of any successor Indenture Trustee at the address designated by such
successor Indenture Trustee by written notice to the Noteholders and the Issuer.

         "Default" shall mean any event that, with notice or the lapse of time
or both, would become an Event of Default.

         "Definitive Notes" shall have the meaning specified in Section 2.11.

         "Delaware Trustee" shall mean The Bank of New York (Delaware), a
Delaware banking corporation, not in its individual capacity but solely as
Delaware Trustee under the Trust Agreement, and any successor Delaware Trustee
under the Trust Agreement.

         "Depositor" shall mean Pooled Auto Securities Shelf LLC, a Delaware
limited liability company, and its successors.

                                       4

<PAGE>

               "Distribution Date" shall mean the 15th day of each month or, if
such 15th day is not a Business Day, the following Business Day, commencing on
July 15, 2002.

               "Event of Default" shall have the meaning specified in Section
5.1.

               "Excess Collections" shall have the meaning specified in Section
2.8(a)(xii).

               "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

               "Executive Officer" shall mean, with respect to any corporation
or limited liability company, as applicable, the Chief Executive Officer, the
Chief Operating Officer, the Chief Financial Officer, the President, any
Executive Vice President, any Senior Vice President, any Vice President, the
Secretary or the Treasurer of such corporation or limited liability company,
and, with respect to any partnership, any general partner of such partnership.

               "Fiscal Year" shall mean the period commencing on March 1 of any
year and ending on February 28 (or February 29, if applicable) of the following
year.

               "Grant" shall mean to mortgage, pledge, bargain, sell, warrant,
alienate, remise, release, convey, assign, transfer, create, and to grant a lien
upon and a security interest in and right of set-off against, and to 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
monies 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" shall mean the Person in whose name a
Note is registered in the Note Register.

               "Indemnification Agreement" shall mean the Indemnification
Agreement dated as of June 12, 2002 among the Insurer, CarMax, as seller, the
Depositor, Wachovia Corporation, a North Carolina corporation, and the
Underwriters (as defined therein), as amended, supplemented or otherwise
modified and in effect from time to time.

               "Indenture Trustee" shall mean Wells Fargo Bank Minnesota,
National Association, a national banking association, not in its individual
capacity but solely as Indenture Trustee under this Indenture, and any successor
Indenture Trustee under this Indenture.

               "Independent" shall mean, when used with respect to any specified
Person, that such Person (i) is in fact independent of the Issuer, any other
obligor on the Notes, the Depositor, the Seller, the Servicer and any Affiliate
of any of the foregoing Persons, (ii) does not have any direct financial
interest or any material indirect financial interest in the Issuer, any such
other obligor, the Depositor, the Seller, the Servicer or any Affiliate of any
of the foregoing Persons and (iii) is not connected with the Issuer, any such
other obligor, the Depositor, the Seller, the

                                       5

<PAGE>

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

               "Insolvency Event" shall mean, with respect to any Person, (i)
the making by such Person of a general assignment for the benefit of creditors,
(ii) the filing by such Person of a voluntary petition in bankruptcy, (iii) such
Person being adjudged bankrupt or insolvent, or having had entered against such
Person an order for relief in any bankruptcy or insolvency proceeding, (iv) the
filing by such Person of a petition or answer seeking reorganization,
arrangement, composition, readjustment, liquidation, dissolution or similar
relief under any statute, law or regulation, (v) the filing by such Person of an
answer or other pleading admitting or failing to contest the material
allegations of a petition filed against such Person in any proceeding specified
in clause (vii) below, (vi) seeking, consenting to or acquiescing in the
appointment of a trustee, receiver or liquidator of such Person or of all or any
substantial part of the assets of such Person or (vii) the failure to obtain
dismissal within 60 days of the commencement of any proceeding against such
Person seeking reorganization, arrangement, composition, readjustment,
liquidation, dissolution or similar relief under any statute, law or regulation,
or the entry of any order appointing a trustee, liquidator or receiver of such
Person of all or any substantial portion of the assets of such Person.

               "Insurance Agreement" shall mean the Insurance and Reimbursement
Agreement, dated as of June 26, 2002, by and among the Insurer, CarMax, in its
individual capacity and as seller and servicer, and the Depositor, as amended,
supplemented or otherwise modified and in effect from time to time.

               "Insurance Premium" shall have the meaning specified in the
Premium Side Letter Agreement.

               "Insurer" shall mean MBIA Insurance Corporation, an insurance
company incorporated under the laws of the State of New York, and its
successors.

               "Insurer Default" shall mean a default by the Insurer under the
Policy (after giving effect to any applicable cure period) or the occurrence of
an Insolvency Event with respect to the Insurer.

               "Issuer" shall mean CarMax Auto Owner Trust 2002-1 or any
successor to CarMax Auto Owner Trust 2002-1 and, for purposes of any provision
contained herein and required by the TIA, each other obligor on the Notes.

               "Issuer Order" shall mean a written order signed in the name of
the Issuer by an Authorized Officer of the Issuer and delivered to the Indenture
Trustee by the Administrator, if

                                       6

<PAGE>

signed by an officer of the Administrator, or at the written direction of the
Depositor, if signed by an officer of the Owner Trustee.

               "Issuer Request" shall mean a written request signed in the name
of the Issuer by an Authorized Officer of the Issuer and delivered to the
Indenture Trustee by the Administrator, if signed by an officer of the
Administrator, or at the written direction of the Depositor, if signed by an
officer of the Owner Trustee.

               "Moody's" shall mean Moody's Investors Service, Inc., and its
successors.

               "Net Principal Policy Amount" shall mean, as of any date, the sum
of the Note Balance plus the Certificate Balance, in each case as of the Closing
Date, minus all amounts previously drawn on the Policy or withdrawn from the
Reserve Account with respect to Monthly Note Principal or Monthly Certificate
Principal.

               "Note Balance" shall mean, at any time, the aggregate principal
amount of all Notes Outstanding at such time.

               "Note Depository Agreement" shall mean the Letter of
Representations dated June 25, 2002, among the Issuer, the Indenture Trustee and
The Depository Trust Company, as the initial Clearing Agency, relating to the
Notes.

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

               "Note Rate" shall mean, in the case of the Class A-1 Notes, the
Class A-1 Rate, in the case of the Class A-2 Notes, the Class A-2 Rate, in the
case of the Class A-3 Notes, the Class A-3 Rate, and in the case of the Class
A-4 Notes, the Class A-4 Rate.

               "Note Register" shall have the meaning specified in Section 2.5.

               "Note Registrar" shall have the meaning specified in Section 2.5.

               "Noteholders" shall mean the Class A-1 Noteholders, the Class A-2
Noteholders, the Class A-3 Noteholders and the Class A-4 Noteholders.

               "Notes" shall mean the Class A-1 Notes, the Class A-2 Notes, the
Class A-3 Notes and the Class A-4 Notes.

               "Officer's Certificate" shall mean a certificate signed by an
Authorized Officer of the Issuer and delivered to the Indenture Trustee, which
certificate shall comply with the applicable requirements of Section 11.1.

               "Opinion of Counsel" shall mean one or more written opinions of
counsel who may, except as otherwise expressly provided in this Indenture, be an
employee of, or outside

                                       7

<PAGE>

counsel to, the Issuer, the Depositor, the Seller or the Servicer and who shall
be acceptable to the Indenture Trustee, which opinion or opinions shall be
addressed to the Indenture Trustee as Indenture Trustee, shall comply with any
applicable requirements of Section 11.1 and shall be in form and substance
satisfactory to the Indenture Trustee.

               "Outstanding" shall mean, 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
         Indenture 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 must have been duly given pursuant to this Indenture
         or provision for such notice must have been made in a manner
         satisfactory to the Indenture Trustee; and

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

provided, however, that in determining whether the Holders of the requisite
principal amount of the Notes Outstanding have given any request, demand,
authorization, direction, notice, consent or waiver hereunder or under any
Transaction Document, Notes owned by the Issuer, any other obligor upon the
Notes, the Depositor, the Seller, the Servicer or any Affiliate of any of the
foregoing Persons shall be disregarded and deemed not to be Outstanding, except
that, in determining whether the Indenture Trustee shall be protected in relying
on any such request, demand, authorization, direction, notice, consent or
waiver, only Notes that a Responsible Officer knows to be so owned shall be so
disregarded. Notes so owned that have been pledged in good faith may be regarded
as Outstanding if the pledgee establishes to the satisfaction of the Indenture
Trustee the pledgee's right so to act with respect to such Notes and that the
pledgee is not the Issuer, any other obligor upon the Notes, the Depositor, the
Seller, the Servicer or any Affiliate of any of the foregoing Persons.

               "Owner Trustee" shall mean The Bank of New York, a New York
banking corporation, not in its individual capacity but solely as Owner Trustee
under the Trust Agreement, and any successor Owner Trustee under the Trust
Agreement.

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

               "Policy" shall mean the irrevocable financial guaranty insurance
policy dated June 26, 2002, issued by the Insurer for the benefit of the
Indenture Trustee, on behalf of the

                                        8

<PAGE>

Noteholders and the Certificateholders, and having a maximum amount available to
be drawn with respect to any Distribution Date equal to the Policy Amount for
such Distribution Date.

               "Policy Amount" shall mean, for any Distribution Date:

                    (x)  the sum of (A) the lesser of (i) the sum of the Note
         Balance plus the Certificate Balance, in each case as of such
         Distribution Date (after giving effect to any distribution of Available
         Collections and any funds withdrawn from the Reserve Account to pay
         principal to the Noteholders or the Certificateholders with respect to
         such Distribution Date) and (ii) the Net Principal Policy Amount as of
         such Distribution Date (after giving effect to any funds withdrawn from
         the Reserve Account to pay principal to the Noteholders or the
         Certificateholders with respect to such Distribution Date) plus (B) the
         Total Servicing Fee for the preceding Collection Period plus (C) the
         Total Note Interest for such Distribution Date plus (D) the Total
         Certificate Interest for such Distribution Date;

                    minus:

                    (y)  the amount on deposit in and available for withdrawal
         from the Reserve Account on such Distribution Date (after giving effect
         to any funds withdrawn from the Reserve Account to pay principal to the
         Noteholders or the Certificateholders with respect to such Distribution
         Date).

               "Predecessor Note" shall mean, 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. Any Note authenticated and delivered under
Section 2.6 in lieu of a mutilated, lost, destroyed or stolen Note shall be
deemed, for purposes of this definition, to evidence the same debt as the
mutilated, lost, destroyed or stolen Note.

               "Premium Side Letter Agreement" shall have the meaning specified
in the Insurance Agreement.

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

               "Rating Agency" shall mean Moody's or Standard & Poor's;
provided, however, that if Moody's and Standard & Poor's cease to exist, Rating
Agency shall mean any nationally recognized statistical rating organization or
other comparable Person designated by the Issuer, written notice of which
designation shall have been given to the Depositor, the Servicer, the Indenture
Trustee, the Owner Trustee and the Insurer.

               "Rating Agency Condition" shall mean, with respect to any action,
that each Rating Agency shall have been given prior notice of such action and
(i) shall have notified the Owner Trustee, the Indenture Trustee and the Insurer
in writing that such action shall not result in a reduction or withdrawal of the
then-current rating assigned by such Rating Agency to any Class of Notes or the
Certificates and (ii) shall have confirmed to the Insurer that such action will
not result in a withdrawal or reduction below investment grade of the then
current shadow rating

                                       9

<PAGE>

assigned by such Rating Agency to any class of Notes or the Certificates, in
each case without giving effect to the benefit of the Policy.

               "Record Date" shall mean, with respect to any Distribution Date
or Redemption Date, the close of business on the Business Day preceding such
Distribution Date or Redemption Date; provided, however, that if Definitive
Notes have been issued pursuant to Section 2.13, Record Date shall mean, with
respect to any Distribution Date or Redemption Date, the last day of the
preceding Collection Period.

               "Redemption Date" shall mean the Distribution Date specified by
the Servicer pursuant to Section 10.1 on which date the Indenture Trustee shall
withdraw any amount remaining in the Reserve Account and deposit the portion of
such amount payable to the Noteholders in the Note Payment Account.

               "Redemption Price" shall mean, in the case of a redemption of
Notes pursuant to Section 10.1, an amount equal to the unpaid principal amount
of the Notes redeemed plus accrued and unpaid interest thereon.

               "Responsible Officer" shall mean any managing director,
principal, vice president, assistant vice president, assistant secretary,
assistant treasurer or trust officer of the Indenture Trustee or any other
officer of the Indenture Trustee customarily performing functions similar to
those performed by any of the above designated officers and, with respect to a
particular corporate trust matter, any other officer of the Indenture Trustee to
whom such matter is referred because of such officer's knowledge of and
familiarity with the particular subject.

               "Sale and Servicing Agreement" shall mean the Sale and Servicing
Agreement, dated as of June 1, 2002, by and among the Issuer, the Depositor, the
Seller and the Servicer, as amended, supplemented or otherwise modified and in
effect from time to time.

               "Seller" shall mean CarMax, in its capacity as seller of the
Receivables under the Receivables Purchase Agreement, and its successors in such
capacity.

               "Servicer" shall mean CarMax, in its capacity as servicer of the
Receivables under the Sale and Servicing Agreement, and its successors in such
capacity.

               "Standard & Poor's" shall mean Standard & Poor's, a division of
The McGraw-Hill Companies, Inc., and its successors.

               "State" shall mean any of the 50 states of the United States of
America or the District of Columbia.

               "Successor Servicer" shall have the meaning specified in Section
3.7(e).

               "Transaction Documents" shall mean the Receivables Purchase
Agreement, the Trust Agreement, the Sale and Servicing Agreement, the
Certificate of Trust, this Indenture, the Administration Agreement, the Note
Depository Agreement, the Certificate Depository Agreement, the Indemnification
Agreement, the Insurance Agreement and the other documents

                                       10

<PAGE>

and certificates delivered in connection therewith, in each case as amended,
supplemented or otherwise modified and in effect from time to time.

               "Trust Accounts" shall mean the Collection Account, the Note
Payment Account, the Certificate Payment Account and the Reserve Account.

               "Trust Agreement" shall mean the Amended and Restated Trust
Agreement, dated as of June 1, 2002, among the Depositor, the Delaware Trustee
and the Owner Trustee, as amended, supplemented or otherwise modified and in
effect from time to time.

               "Trust Estate" shall mean 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 property and interests Granted to the Indenture Trustee),
including all proceeds thereof.

               "Trust Indenture Act" or "TIA" shall mean the Trust Indenture Act
of 1939, as amended.

               (b)  Except as otherwise specified herein or as the context may
otherwise require, capitalized terms used but not otherwise defined herein have
the respective meanings set forth in, or incorporated by reference into, the
Sale and Servicing Agreement or the Trust Agreement for all purposes of this
Indenture.

               SECTION 1.2 Incorporation by Reference of Trust Indenture Act.
Whenever this Indenture refers to a provision of the TIA, that 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:

               "Indenture securities" shall mean the Notes.

               "Indenture security holder" shall mean a Noteholder.

               "Indenture to be qualified" shall mean this Indenture.

               "Indenture trustee" or "Institutional trustee" shall mean the
Indenture Trustee.

               "Obligor on the indenture securities" shall mean the Issuer and
any other obligor on the Notes.

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

               SECTION 1.3 Rules of Construction. Unless the context otherwise
requires:

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

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<PAGE>

                    (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;

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

                    (vii)  references to a Person are also to its permitted
         successors and assigns.

                                   ARTICLE II
                                    THE NOTES

         SECTION 2.1 Form.

         (a)  The Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and
the Class A-4 Notes, together with the Indenture Trustee's certificates of
authentication, shall be substantially in the form set forth in Exhibit A-1,
Exhibit A-2, Exhibit A-3 and Exhibit A-4, 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 thereof. Any portion of the text of any Note may be
set forth on the reverse thereof, with an appropriate reference thereto on the
face of the Note.

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

         (c)  Each Note shall be dated the date of its authentication. The terms
of the Notes set forth in Exhibits A-1 through A-4 hereto are part of the terms
of this Indenture and are incorporated herein by reference.

                                       12

<PAGE>

               SECTION 2.2 Execution, Authentication and Delivery.

               (a)  The Notes shall be executed on behalf of the Issuer by any
of its Authorized Officers. The signatures of any such Authorized Officer on the
Notes may be manual or facsimile.

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

               (c)  The Indenture Trustee shall, upon Issuer Order, authenticate
and deliver the Class A-1 Notes for original issue in an aggregate principal
amount of $110,000,000, the Class A-2 Notes for original issue in an aggregate
principal amount of $126,000,000, the Class A-3 Notes for original issue in an
aggregate principal amount of $159,000,000 and the Class A-4 Notes for original
issue in an aggregate principal amount of $107,361,000. The aggregate principal
amounts of Class A-1 Notes, Class A-2 Notes, Class A-3 Notes and Class A-4 Notes
outstanding at any time may not exceed those respective amounts except as
provided in Section 2.6.

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

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

               SECTION 2.3 Temporary Notes.

               (a)  Pending the preparation of Definitive Notes pursuant to
Section 2.13, the Issuer may execute, and upon receipt of an Issuer Order the
Indenture Trustee shall authenticate and deliver, temporary Notes that are
printed, lithographed, typewritten, mimeographed or otherwise produced of the
tenor of the Definitive Notes in lieu of which they are issued and with such
variations not inconsistent with the terms of this Indenture as the officers
executing such Notes may determine, as evidenced by their execution of such
Notes.

               (b)  If temporary Notes are issued pursuant to Section 2.3(a),
the Issuer shall cause Definitive Notes to be prepared without unreasonable
delay. After the preparation of Definitive Notes, the temporary Notes shall be
exchangeable for Definitive Notes upon surrender of the temporary Notes at the
office or agency of the Note Registrar to be maintained as provided in Section
3.2, without charge to the Holder. Upon surrender for cancellation of any one or
more temporary Notes, the Issuer shall execute, and the Indenture Trustee shall
authenticate and deliver in exchange therefor, a like principal amount of
Definitive Notes of authorized denominations. Until so exchanged, the temporary
Notes shall in all respects be entitled to the same benefits under this
Indenture as Definitive Notes.

                                       13

<PAGE>

               SECTION 2.4 Tax Treatment. The Issuer has entered into this
Indenture, and the Notes shall be issued, with the intention that, for federal,
state and local income and franchise tax purposes, the Notes shall qualify as
indebtedness of the Issuer secured by the Trust Estate. The Issuer, by entering
into this Indenture, and each Noteholder, by its acceptance of a Note (and each
Note Owner by its acceptance of an interest in the applicable Book-Entry Note),
agree to treat the Notes as indebtedness of the Issuer for federal, state and
local income and franchise tax purposes.

               SECTION 2.5 Registration; Registration of Transfer and Exchange.

               (a)  The Indenture Trustee initially shall be the registrar (the
"Note Registrar") for the purpose of registering Notes and transfers of Notes as
herein provided. The Note Registrar shall cause to be kept a register (the "Note
Register") in which, subject to such reasonable regulations as it may prescribe,
the Note Registrar shall provide for the registration of Notes and the
registration of transfers of Notes. 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.

               (b)  If a Person other than the Indenture Trustee is appointed by
the Issuer as Note Registrar, (i) the Issuer shall give the Indenture Trustee
prompt written notice of the appointment of such Note Registrar and of the
location, or any change in the location, of the Note Register, (ii) the
Indenture Trustee shall have the right to inspect the Note Register at all
reasonable times and to obtain copies thereof and (iii) the Indenture Trustee
shall have the right to rely upon a certificate executed on behalf of the Note
Registrar by an Executive Officer thereof as to the names and addresses of the
Holders of the Notes and the principal amounts and number of such Notes.

               (c)  Upon surrender for registration of transfer of any Note at
the office or agency of the Issuer to be maintained as provided in Section 3.2,
if the requirements of Section 8-401 or 8A-401, as applicable, of the Relevant
UCC are met, the Issuer shall execute, and the Indenture Trustee shall
authenticate and deliver to the Noteholder making such surrender, in the name of
the designated transferee or transferees, one or more new Notes of the same
Class in any authorized denomination, of a like aggregate principal amount. The
Indenture Trustee may rely upon the Administrator with respect to the
determination of whether the requirements of Section 8-401 or 8A-401, as
applicable, of the Relevant UCC are met.

               (d)  At the option of the Noteholder, Notes may be exchanged for
other Notes of the same Class in any authorized denominations, of a like
aggregate principal amount, upon surrender of the Notes to be exchanged at such
office or agency. Whenever any Notes are so surrendered for exchange, if the
requirements of Section 8-401 or 8A-401, as applicable, of the Relevant UCC are
met, the Issuer shall execute, and the Indenture Trustee shall authenticate and
deliver to the Noteholder making such exchange, the Notes which such Noteholder
is entitled to receive. The Indenture Trustee may rely upon the Administrator
with respect to the determination of whether the requirements of Section 8-401
or 8A-401, as applicable, of the Relevant UCC are met.

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<PAGE>

         (e) 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.

         (f) All Notes presented or surrendered for registration of transfer or
exchange shall be duly endorsed by, or be accompanied by a written instrument of
transfer in form satisfactory to the Indenture Trustee duly executed by, the
Holder thereof or such Holder's attorney duly authorized in writing, with such
signature guaranteed by an "eligible guarantor institution" meeting the
requirements of the Note Registrar.

         (g) No service charge shall be made to a Holder for any registration of
transfer or exchange of Notes, but the Issuer may require payment by such Holder
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 2.3 or 9.6 not involving any transfer.

         (h) The Issuer shall not be required to make, and the Note Registrar
need not register, transfers or exchanges of Notes selected for redemption or
Notes with respect to which the due date for any payment will occur within 15
days.

         SECTION 2.6 Mutilated, Destroyed, Lost or Stolen Notes.

         (a) If (i) any mutilated Note is surrendered to the Indenture Trustee,
or the Indenture Trustee receives evidence to its satisfaction of the
destruction, loss or theft of any Note, and (ii) there is delivered to the
Indenture Trustee such security or indemnity as may be required by it to hold
the Issuer and the Indenture Trustee harmless, then, in the absence of notice to
the Issuer, the Note Registrar or the Indenture Trustee that such Note has been
acquired by a "protected purchaser" (as defined in the Relevant UCC), and
provided that the requirements of Section 8-405 or 8A-405, as applicable, of the
Relevant UCC are met, the Issuer shall execute and the Indenture Trustee shall
authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Note, a replacement Note of the same Class; provided,
however, that if any such destroyed, lost or stolen Note, but not a mutilated
Note, shall have become or within seven (7) days of the Indenture Trustee's
receipt of evidence to its satisfaction of such destruction, loss or theft shall
be due and payable, or shall have been called for redemption in whole pursuant
to Section 10.1, instead of issuing a replacement Note of the same Class, the
Issuer may pay such destroyed, lost or stolen Note when so due or payable or
upon the Redemption Date without surrender thereof. The Indenture Trustee may
conclusively rely upon the Administrator with respect to the determination of
whether the requirements of Section 8-405 or 8A-405, as applicable, of the
Relevant UCC are met. 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 "protected purchaser" (as defined in the Relevant UCC) of the
original Note in lieu of which such replacement Note was issued presents for
payment such original Note, the Issuer and the Indenture Trustee shall be
entitled to recover such replacement Note (or such payment) from the Person to
whom such replacement Note was delivered or any Person taking such replacement
Note from such Person to whom such replacement Note was delivered or any
assignee of such Person, except a "protected purchaser" (as defined in the
Relevant UCC), and

                                       15

<PAGE>

shall be entitled to recover upon the security or indemnity provided therefor to
the extent of any loss, damage, cost or expense incurred by the Issuer or the
Indenture Trustee in connection therewith.

         (b) Upon the issuance of any replacement Note under this Section 2.6,
the Issuer may require the payment by the Holder of such Note of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with such issuance and any other reasonable expenses (including the
fees and expenses of the Indenture Trustee) related thereto.

         (c) Every replacement Note issued pursuant to this Section 2.6 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.

         (d) The provisions of this Section 2.6 are exclusive and shall preclude
(to the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Notes.

         SECTION 2.7  Persons Deemed Owners. Prior to due presentation of a Note
for registration of transfer, the Issuer, the Indenture Trustee and any agent of
the Issuer or the Indenture Trustee may, subject to Section 2.6, treat the
Person in whose name such Note is registered in the Note Register (as of the day
of determination) as the owner of such Note for the purpose of receiving
payments of principal of and interest on such Note and for all other purposes
whatsoever, whether or not such Note shall be overdue, and none of the Issuer,
the Indenture Trustee or any agent of the Issuer or the Indenture Trustee shall
be affected by any notice to the contrary.

         SECTION 2.8  Payments.

         (a) On each Distribution Date, upon receipt of written instructions
from the Servicer pursuant to Section 4.6(d) of the Sale and Servicing
Agreement, the Indenture Trustee shall apply the Available Funds for such
Distribution Date to make the following payments and deposits in the following
order of priority:

             (i)   to the Servicer, the Total Servicing Fee for the preceding
         Collection Period;

             (ii)  to the Note Payment Account, the Total Note Interest for such
         Distribution Date;

             (iii) if the Notes have not been declared immediately due and

         payable following an Event of Default, to the Certificate Payment
         Account, the Total Certificate Interest for such Distribution Date
         (which payment shall be made no later than 12:00 p.m., New York City
         time, on such Distribution Date);

                                       16

<PAGE>

                  (iv)   to the Note Payment Account, the Monthly Note Principal
         for such Distribution Date;

                  (v)    if the Notes have been declared immediately due and
         payable following an Event of Default, to the Certificate Payment
         Account, the Total Certificate Interest for such Distribution Date
         (which payment shall be made no later than 12:00 p.m., New York City
         time, on such Distribution Date);

                  (vi)   to the Certificate Payment Account, the Monthly
         Certificate Principal for such Distribution Date (which payment shall
         be made no later than 12:00 p.m., New York City time, on such
         Distribution Date);

                  (vii)  to the Insurer, the Insurance Premium for such
         Distribution Date plus any overdue Insurance Premiums for previous
         Distribution Dates;

                  (viii) to the Insurer, the aggregate amount of any
         unreimbursed payments under the Policy, including any amount deposited
         by the Insurer pursuant to Section 5.2(d) or (e) to the extent payable
         to the Insurer under the Insurance Agreement plus accrued interest on
         any unreimbursed payments under the Policy, including any amount
         deposited by the Insurer pursuant to Section 5.2(d) or (e) at the rate
         provided in the Insurance Agreement plus any other amounts due the
         Insurer under the Insurance Agreement plus any unreimbursed Insurer
         Defense Costs;

                  (ix)   if the Notes have been declared immediately due and
         payable following an Event of Default, to the Note Payment Account, an
         amount equal to the Note Balance as of such Distribution Date (before
         giving effect to the application of the amount on deposit in the
         Collection Account on such Distribution Date) minus the Monthly Note
         Principal for such Distribution Date;

                  (x)    if a Successor Servicer has been appointed pursuant to
         Section 8.2 of the Sale and Servicing Agreement, to such Successor
         Servicer, any unpaid Transition Costs due in connection with such
         transfer of servicing plus the Additional Servicing Fee, if any, for
         the preceding Collection Period;

                  (xi)   to the Reserve Account, the Reserve Account Deficiency,
         if any, for such Distribution Date; and

                  (xii)  to the Seller, as holder of the Residual Interest, any
         remaining Available Funds (the "Excess Collections").

            (b)   The principal of each Note shall be payable in installments on
each Distribution Date in an aggregate amount (unless the Notes have been
declared immediately due and payable following an Event of Default) for all
Classes of Notes equal to the Monthly Note Principal for such Distribution Date.
On each Distribution Date (unless the Notes have been declared immediately due
and payable following an Event of Default), upon receipt of instructions from
the Servicer pursuant to Section 4.6(d) of the Sale and Servicing Agreement, the
Indenture Trustee shall apply or cause to be applied the amount on deposit in
the Note

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<PAGE>

Payment Account on such Distribution Date to make the following payments in the
following order of priority:

                  (i)   to the Holders of each Class of Notes, the portion of
         the Total Note Interest payable to such Class for such Distribution
         Date;

                  (ii)  to the Class A-1 Noteholders, the Monthly Note Principal
         for that Distribution Date until the principal amount of the Class A-1
         Notes has been paid in full;

                  (iii) following payment in full of the Class A-1 Notes, to the
         Class A-2 Noteholders, the Monthly Note Principal for that Distribution
         Date until the principal amount of the Class A-2 Notes has been paid in
         full;

                  (iv)  following payment in full of the Class A-2 Notes, to the
         Class A-3 Noteholders, the Monthly Note Principal for that Distribution
         Date until the principal amount of the Class A-3 Notes has been paid in
         full; and

                  (v)   following payment in full of the Class A-3 Notes, to the
         Class A-4 Noteholders, the Monthly Note Principal for that Distribution
         Date until the principal amount of the Class A-4 Notes has been paid in
         full.

             If the amount on deposit in the Note Payment Account (including any
portion of the Reserve Account Draw Amount or the Policy Claim Amount included
in such amount) on any Distribution Date is less than the amount described in
clause (i) above for such Distribution Date, the Indenture Trustee shall pay the
available amount to the Holders of each Class of Notes pro rata based on the
Total Note Interest payable to such Class on such Distribution Date. If the
amount available to pay principal of the Notes on any Distribution Date is less
than the Monthly Note Principal for such Distribution Date, the Indenture
Trustee shall pay the available amount to the Holders of each Class of Notes pro
rata based on the outstanding principal amount of such Class as of such
Distribution Date.

             (c) The unpaid principal amount of the Class A-1 Notes, to the
extent not previously paid, shall be due and payable on the Class A-1 Final
Distribution Date, the principal amount of the Class A-2 Notes, to the extent
not previously paid, shall be due and payable on the Class A-2 Final
Distribution Date, the principal amount of the Class A-3 Notes, to the extent
not previously paid, shall be due and payable on the Class A-3 Final
Distribution Date and the principal amount of the Class A-4 Notes, to the extent
not previously paid, shall be due and payable on the Class A-4 Final
Distribution Date.

             (d) The Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes
and the Class A-4 Notes shall accrue interest during each Accrual Period at the
Class A-1 Rate, the Class A-2 Rate, the Class A-3 Rate and the Class A-4 Rate,
respectively, and such interest shall be due and payable on each Distribution
Date. Interest on the Class A-1 Notes shall be calculated on the basis of the
actual number of days elapsed and a 360-day year. Interest on the Class A-2
Notes, the Class A-3 Notes and the Class A-4 Notes shall be calculated on the
basis of a 360-day year of twelve 30-day months. Subject to Section 3.1, any
installment of interest or principal, if any, payable on any Note that is
punctually paid or duly provided for on the applicable Distribution Date shall
be paid to the Person in whose name such Note (or one or more Predecessor Notes)
is

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<PAGE>

registered on the related Record Date by check mailed first-class postage
prepaid to such Person's address as it appears on the Note Register on such
Record Date; provided, however, that, unless Definitive Notes have been issued
pursuant to Section 2.13, with respect to Notes registered on the Record Date in
the name of the nominee of the Clearing Agency (initially, such nominee to be
Cede & Co.), payment shall be made by wire transfer in immediately available
funds to the account designated by such nominee, and except for the final
installment of principal payable with respect to such Note on a Distribution
Date or on the related Class Final Distribution Date (and except for the
Redemption Price for any Note called for redemption in whole pursuant to Section
10.1(a) or (b)), which shall be payable as provided below. The funds represented
by any such checks returned undelivered shall be held in accordance with Section
3.3. The Indenture Trustee shall pay all Total Note Interest for any
Distribution Date to the Holders of the Notes on the related Record Date even if
a portion of such Total Note Interest relates to an earlier Distribution Date.

              (e) All principal and interest payments on a Class of Notes shall
be made pro rata to the Holders of such Class. The Indenture Trustee shall,
before the Distribution Date on which the Issuer expects to pay the final
installment of principal of and interest on any Note, notify the Holder of such
Note as of the related Record Date of such final installment. Such notice shall
be mailed or transmitted by facsimile and shall specify that such final
installment shall be payable only upon presentation and surrender of such Note
and shall specify the place where such Note may be presented and surrendered for
payment of such installment. Notices in connection with redemption of Notes
shall be mailed to Noteholders as provided in Section 10.2.

              (f) Notwithstanding the foregoing, the unpaid principal amount of
the Notes shall be due and payable, to the extent not previously paid, on the
date on which the Notes have been declared immediately due and payable following
an Event of Default. On each Distribution Date following acceleration of the
Notes, upon receipt of instructions from the Servicer pursuant to Section 4.6(d)
of the Sale and Servicing Agreement, the Indenture Trustee shall apply or cause
to be applied the amount on deposit in the Note Payment Account on such
Distribution Date to make the following payments in the following order of
priority:

                  (i)   to the Holders of each Class of Notes, the portion of
         the Total Note Interest payable to such Class for such Distribution
         Date; and

                  (ii)  to the Holders of each Class of Notes, the amount
         remaining on deposit in the Note Payment Account on such Distribution
         Date pro rata based on the outstanding principal amount of such Class
         as of such Distribution Date.

              If the amount on deposit in the Note Payment Account (including
any portion of the Reserve Account Draw Amount or the Policy Claim Amount
included in such amount) on any Distribution Date following acceleration of the
Notes is less than the amount described in clause (i) above for such
Distribution Date, the Indenture Trustee shall pay the available amount to the
Holders of each Class of Notes pro rata based on the Total Note Interest payable
to such Class on such Distribution Date.

              (g)  The Indenture Trustee shall transfer amounts from the
Reserve Account, deposit amounts transferred from the Reserve Account, submit
claims under the Policy and

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<PAGE>

deposit amounts drawn under the Policy, in each case at the written direction of
the Servicer and on behalf of the Noteholders and the Certificateholders, in
accordance with the Sale and Servicing Agreement.

                  SECTION 2.9  Cancellation. All Notes surrendered for payment,
registration of transfer, exchange or redemption in whole pursuant to Section
10.1(a) or (b) shall, if surrendered to any Person other than the Indenture
Trustee, be delivered to the Indenture Trustee and shall be promptly canceled by
the Indenture Trustee. The Issuer may at any time deliver to the Indenture
Trustee for cancellation any Notes previously authenticated and delivered
hereunder which the Issuer may have acquired in any manner whatsoever, and all
Notes so delivered shall be promptly canceled by the Indenture Trustee. No Notes
shall be authenticated in lieu of or in exchange for any Notes canceled as
provided in this Section 2.9, except as expressly permitted by this Indenture.
All canceled Notes may be held or disposed of by the Indenture Trustee in
accordance with its standard retention or disposal policy as in effect at the
time unless the Issuer shall direct by an Issuer Order that they be destroyed or
returned to it, provided that such Issuer Order is timely and the Notes have not
been previously disposed of by the Indenture Trustee.

                  SECTION 2.10 Release of Collateral. Subject to Section 11.1
and the terms of the Transaction Documents, the Indenture Trustee shall release
property from the lien of this Indenture only upon receipt of an Issuer Request
(which shall include delivery instructions and other relevant information)
accompanied by an Officer's Certificate, an Opinion of Counsel and Independent
Certificates in accordance with TIA Sections 314(c) and 314(d)(1) or an Opinion
of Counsel in lieu of such Independent Certificates to the effect that the TIA
does not require any such Independent Certificates. If the Commission shall
issue an exemptive order under TIA Section 304(d) modifying the Indenture
Trustee's obligations under TIA Sections 314(c) and 314(d)(1), the Indenture
Trustee shall release property from the lien of this Indenture in accordance
with the conditions and procedures set forth in such exemptive order.

                  SECTION 2.11 Book-Entry Notes. The Notes, upon original
issuance, shall be issued in the form of typewritten Notes representing the
Book-Entry Notes, to be delivered to The Depository Trust Company, the initial
Clearing Agency, by, or on behalf of, the Issuer. The Book-Entry Notes shall be
registered initially on the Note Register in the name of Cede & Co. , the
nominee of the initial Clearing Agency, and no Note Owner thereof shall receive
a definitive Note representing such Note Owner's interest in such Note, except
as provided in Section 2.13. Unless and until definitive, fully registered Notes
(the "Definitive Notes") have been issued to such Note Owners pursuant to
Section 2.13:

                      (i)      the provisions of this Section 2.11 shall be in
         full force and effect;

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

                                       20

<PAGE>

                   (iii)  to the extent that the provisions of this Section 2.11
         conflict with any other provisions of this Indenture, the provisions of
         this Section shall control;

                   (iv)   the rights of Note Owners shall be exercised only
         through the Clearing Agency and shall be limited to those established
         by law and agreements between such Note Owners and the Clearing Agency
         and/or the Clearing Agency Participants pursuant to the Note
         Depository Agreement; unless and until Definitive Notes are issued
         pursuant to Section 2.13, the initial Clearing Agency shall make
         book-entry transfers among the Clearing Agency Participants and
         receive and transmit payments of principal of and interest on the
         Notes to such Clearing Agency Participants; and

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

            SECTION 2.12  Notices to Clearing Agency. Whenever a notice or other
communication to the Noteholders is required under this Indenture, unless and
until Definitive Notes shall have been issued to such Note Owners pursuant to
Section 2.13, the Indenture Trustee shall give all such notices and
communications specified herein to be given to Holders of the Notes to the
Clearing Agency, and shall have no obligation to such Note Owners.

            SECTION 2.13  Definitive Notes. If (i) the Administrator or the
Servicer advises the Indenture Trustee in writing that the Clearing Agency is no
longer willing or able to properly discharge its responsibilities with respect
to the Book-Entry Notes and the Indenture Trustee or the Administrator is unable
to locate a qualified successor, (ii) the Administrator, at its option, advises
the Indenture Trustee in writing that it elects to terminate the book-entry
system through the Clearing Agency or (iii) after the occurrence of an Event of
Default or an Event of Servicing Termination, Note Owners of the Book-Entry
Notes representing beneficial interests aggregating not less than 51% of the
principal amount of such Notes advise the Indenture Trustee and the Clearing
Agency in writing that the continuation of a book-entry system through the
Clearing Agency is no longer in the best interests of such Note Owners, then the
Clearing Agency shall notify all Note Owners and the Indenture Trustee in
writing of the occurrence of such event and of the availability of Definitive
Notes to Note Owners requesting the same. Upon surrender to the Indenture
Trustee of the typewritten Notes representing the Book-Entry Notes by the
Clearing Agency, accompanied by registration instructions, the Issuer, at its
own expense, shall execute and deliver the Definitive Notes to the Indenture
Trustee and the Indenture Trustee shall authenticate the Definitive Notes in
accordance with the instructions of the Clearing Agency. None of the Issuer, the
Note Registrar or the Indenture Trustee shall be liable for any delay in
delivery of such instructions and may conclusively rely on, and shall be
protected in relying on, such instructions. Upon the issuance of Definitive
Notes, the Indenture Trustee shall recognize the Holders of the Definitive Notes
as Noteholders.

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<PAGE>

         SECTION 2.14  Authenticating Agents. The Indenture Trustee may appoint
one or more Persons (each, an "Authenticating Agent") with power to act on its
behalf and subject to its direction in the authentication of Notes in connection
with issuance, transfers and exchanges under Sections 2.2, 2.3, 2.5 and 2.6, as
fully to all intents and purposes as though each such Authenticating Agent had
been expressly authorized by those Sections to authenticate such Notes. For all
purposes of this Indenture, the authentication of Notes by an Authenticating
Agent pursuant to this Section 2.14 shall be deemed to be the authentication of
Notes "by the Indenture Trustee."

         Any corporation into which any Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, consolidation or conversion to which any Authenticating Agent
shall be a party, or any corporation succeeding to all or substantially all of
the corporate trust business of any Authenticating Agent, shall be the successor
of such Authenticating Agent hereunder, without the execution or filing of any
document or any further act on the part of the parties hereto or such
Authenticating Agent or such successor corporation.

         Any Authenticating Agent may at any time resign by giving written
notice of resignation to the Indenture Trustee and the Owner Trustee. The
Indenture Trustee may at any time terminate the agency of any Authenticating
Agent by giving written notice of termination to such Authenticating Agent and
the Owner Trustee. Upon receiving such notice of resignation or upon such a
termination, the Indenture Trustee may appoint a successor Authenticating Agent
and shall give written notice of any such appointment to the Owner Trustee.

         The Administrator agrees to pay to each Authenticating Agent from time
to time reasonable compensation for its services. The provisions of Sections 2.9
and 6.4 shall be applicable to any Authenticating Agent.

                                   ARTICLE III
                                    COVENANTS

         SECTION 3.1   Payment of Principal and Interest. The Issuer shall duly
and punctually pay the principal of and interest, if any, on the Notes in
accordance with the terms of the Notes and this Indenture. Amounts properly
withheld under the Code by any Person from a payment to any Noteholder of
interest and/or principal shall be considered as having been paid by the Issuer
to such Noteholder for all purposes of this Indenture.

         SECTION 3.2   Maintenance of Office or Agency. The Note Registrar shall
maintain in the Borough of Manhattan, The City of New York, an office or agency
where Notes may be surrendered for registration of transfer or exchange, and
where notices and demands to or upon the Note Registrar in respect of the Notes
and this Indenture may be served. The Note Registrar shall give prompt written
notice to the Issuer, the Depositor and the Indenture Trustee of the location,
and of any change in the location, of any such office or agency. If, at any
time, the Issuer and the Note Registrar shall fail to maintain any such office
or agency or shall fail to furnish the Indenture Trustee with the address
thereof, such surrenders, notices and demands may be made or served at the
Corporate Trust Office, and the Issuer hereby appoints the Indenture Trustee as
its agent to receive all such surrenders, notices and demands.

                                       22

<PAGE>

         SECTION 3.3 Money for Payments To Be Held in Trust.

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

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

         (c)   The Issuer shall cause each Paying Agent other than the Indenture
Trustee to execute and deliver to the Indenture Trustee an instrument in which
such Paying Agent shall agree with the Indenture Trustee (and if the Indenture
Trustee acts as Paying Agent, it hereby so agrees), subject to the provisions of
this Section 3.3, that such Paying Agent shall:

               (i)   hold all sums held by it for the payment of amounts due

         with respect to the Notes in trust for the benefit of the Persons
         entitled thereto until such sums shall be paid to such Persons or
         otherwise disposed of as herein provided and pay such sums to such
         Persons as herein provided;

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

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

               (iv)  immediately resign as a Paying Agent and forthwith pay to
         the Indenture Trustee all sums held by it in trust for payment of the
         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 and any state or
         local tax law with respect to the withholding from any payments made by
         it on the Notes of any applicable withholding taxes imposed thereon and
         with respect to any applicable reporting requirements in connection
         therewith.

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

                                       23

<PAGE>

         (e)    Subject to applicable laws with respect to escheat of funds, any
money held by the Indenture Trustee or any Paying Agent in trust for the payment
of any amount due with respect to any Note and remaining unclaimed for two (2)
years after such amount has become due and payable shall be discharged from such
trust and be paid to the Issuer on Issuer Request, and the Holder of such Note
shall thereafter, as an unsecured general creditor, look only to the Issuer for
payment thereof (but only to the extent of the amounts so paid to the Issuer),
and all liability of the Indenture Trustee or such Paying Agent with respect to
such trust money shall thereupon cease; provided, however, that the Indenture
Trustee or such Paying Agent, before being required to make any such repayment,
shall at the expense and direction of the Issuer cause to be published once, in
a newspaper published in the English language, customarily published on each
Business Day and of general circulation in The City of New York, notice that
such money remains unclaimed and that, after a date specified therein, which
shall not be less than thirty (30) days from the date of such publication, any
unclaimed balance of such money then remaining shall be repaid to the Issuer.
The Indenture Trustee shall also adopt and employ, at the expense and direction
of the Issuer, any other reasonable means of notification of such repayment
(including mailing notice of such repayment to Holders whose Notes have been
called but have not been surrendered for redemption in whole pursuant to Section
10.1 or whose right to or interest in monies due and payable but not claimed is
determinable from the records of the Indenture Trustee or of any Paying Agent at
the last address of record for each such Holder).

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

         SECTION 3.5   Protection of Trust Estate. The Issuer shall from time to
time authorize, execute and deliver all such supplements and amendments hereto
and all such financing statements, continuation statements, instruments of
further assurance and other instruments, and shall take such other action,
necessary or advisable to:

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

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

                (iii)  enforce any of the Collateral; or

                (iv)   preserve and defend title to the Trust Estate and the
         rights of the Indenture Trustee and the Noteholders in the Trust Estate
         against the claims of all Persons.

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<PAGE>

The Issuer hereby authorizes the Indenture Trustee to file any financing
statement or continuation statement required pursuant to this Section 3.5 and
designates the Indenture Trustee as its agent and attorney-in-fact to execute
any other instrument required to be executed pursuant to this Section 3.5.

         SECTION 3.6 Opinions as to Trust Estate.

         (a) On the Closing Date, the Issuer shall deliver to the Indenture
Trustee an Opinion of Counsel substantially in the form attached hereto as
Exhibit B.

         (b) On or before March 31 of each year (commencing with the year 2003),
the Issuer shall deliver to the Depositor, the Indenture Trustee and the Insurer
an Opinion of Counsel either stating that, in the opinion of such counsel, such
action has been taken with respect to the recording, filing, re-recording and
refiling of this Indenture, any indentures supplemental hereto and any other
requisite documents and with respect to the authorization and filing of any
financing statements and continuation statements as is necessary to maintain the
lien and security interest created by this Indenture and reciting the details of
such action or stating that, in the opinion of such counsel, no such action is
necessary to maintain 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 authorization and filing of any financing statements and continuation
statements that shall, in the opinion of such counsel, be required to maintain
the lien and security interest of this Indenture until March 31 in the following
year.

         SECTION 3.7 Performance of Obligations; Servicing of Receivables.

         (a) The Issuer shall not take any action and shall 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 and the other Transaction Documents.

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

         (c) The Issuer shall punctually perform and observe all of its
obligations and agreements contained in this Indenture, the other Transaction
Documents and the instruments and agreements included in the Trust Estate,
including filing or causing to be filed all financing statements and
continuation statements required to be filed under the Relevant UCC 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 an Event of
Servicing Termination, the Issuer shall promptly notify the Depositor, the
Indenture Trustee, the

                                       25

<PAGE>

Insurer and the Rating Agencies in writing of such event and shall specify in
such notice the action, if any, the Issuer is taking in respect of such default.
If an Event of Servicing Termination 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) 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 may (subject to the rights of the
Indenture Trustee to direct such appointment pursuant to Section 8.2 of the Sale
and Servicing Agreement) appoint a successor servicer acceptable to the Insurer
(the "Successor Servicer"), and such Successor Servicer shall accept its
appointment by a written assumption in a form acceptable to the Indenture
Trustee. In the event that a Successor Servicer has not been appointed and has
not accepted its appointment at the time when the Servicer ceases to act as
Servicer, the Indenture Trustee, without further action, shall be the successor
to the Servicer in all respects in accordance with Section 8.2 of the Sale and
Servicing Agreement. The Indenture Trustee may resign as the Servicer by giving
written notice of such resignation to the Issuer and in such event shall 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 Indenture Trustee)
shall (i) be an established financial institution having a net worth of not less
than $50,000,000 and whose regular business includes the servicing of motor
vehicle installment sale contracts 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 thirty
(30) days after the delivery of the notice referred to above, the Issuer shall
not have obtained such a new servicer, the Indenture Trustee may appoint, or may
petition a court of competent jurisdiction to appoint, a Successor Servicer. In
connection with any such appointment, the Indenture 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 Sale 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 Indenture Trustee and the Insurer). If the
Indenture 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 Indenture Trustee and, accordingly, the provisions of
Article VI shall be inapplicable to the Indenture Trustee in its duties as the
successor to the Servicer and the servicing of the Receivables. In case the
Indenture Trustee shall become successor to the Servicer under the Sale and
Servicing Agreement, the Indenture Trustee shall be entitled to appoint as
Servicer any one of its Affiliates; provided, however, that the Indenture
Trustee, in its capacity as the Servicer, shall be fully liable for the actions
and omissions of such Affiliate in such capacity as Successor Servicer.
Notwithstanding any other provisions of this Indenture to the contrary, in no
event shall the Indenture Trustee be liable for any servicing fee or for any
differential in the amount of the servicing fee paid under the Sale and
Servicing Agreement and the amount necessary to induce any Successor Servicer to
act as Successor Servicer under the Sale and Servicing Agreement.

                                       26

<PAGE>

         (f) Upon any termination of the Servicer's rights and powers pursuant
to Section 8.1 of the Sale and Servicing Agreement, the Issuer shall promptly
notify the Depositor, the Indenture Trustee, the Insurer and the Rating Agencies
in writing of such termination. Upon any appointment of a Successor Servicer by
the Issuer, the Issuer shall promptly notify the Depositor, the Indenture
Trustee, the Insurer and the Rating Agencies in writing of such appointment,
specifying in such notice the name and address of such Successor Servicer.

         (g) The Issuer shall not waive timely performance by the Depositor, the
Seller or the Servicer of their respective obligations under the Transaction
Documents without the prior written consent of the Insurer (if no Insurer
Default shall have occurred and be continuing) or if such waiver would
reasonably be expected to materially adversely affect the interests of the
Noteholders or the Insurer.

         SECTION 3.8 Negative Covenants. If any Notes are Outstanding, the
Issuer shall not:

             (i)   except as expressly permitted by this Indenture, the Trust
     Agreement, the Receivables 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 in writing by the Indenture Trustee with
     the prior written consent of the Insurer;

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

             (iii) dissolve or liquidate in whole or in part;

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

             (v)   engage in any activities other than financing, acquiring,
     owning, pledging and managing the Receivables as contemplated by the
     Receivables Purchase Agreement, the Trust Agreement, the Sale and Servicing
     Agreement and this Indenture and activities incidental to such activities;
     or

                                       27

<PAGE>

             (vi)  incur, assume or guarantee any indebtedness other than the
     indebtedness evidenced by the Notes or indebtedness otherwise permitted by
     the Receivables Purchase Agreement, the Trust Agreement, the Sale and
     Servicing Agreement or this Indenture.

         SECTION 3.9  Annual Statement as to Compliance. On or before May 31 of
each year (commencing with the year 2003), the Issuer shall deliver to the
Depositor, the Indenture Trustee and the Insurer 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 the preceding
     Fiscal Year (or, in the case of the Officer's Certificate to be delivered
     in the year 2003, during the period beginning on the Closing Date and
     ending on February 28, 2003) and of its performance under this Indenture
     has been made under such Authorized Officer's supervision; and

             (ii)  to the best of such Authorized Officer's knowledge, based on
     such review, the Issuer has complied with all conditions and covenants
     under this Indenture throughout such preceding Fiscal Year (or, in the case
     of the Officer's Certificate to be delivered in the year 2003, during the
     period beginning on the Closing Date and ending on February 28, 2003) or,
     if there has been a default in its compliance with any such condition or
     covenant, specifying each such default known to such Authorized Officer and
     the nature and status thereof.

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

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

             (i)   the Person formed by or surviving such consolidation or
     merger (if other than the Issuer) shall be a Person organized and existing
     under the laws of the United States of America or any State and shall
     expressly assume, by an indenture supplemental hereto, executed and
     delivered to the Indenture Trustee, in form satisfactory to the Depositor,
     the Indenture Trustee and the Insurer (if no Insurer Default shall have
     occurred and be continuing), the due and punctual payment of the principal
     of and interest on all Notes and the performance or observance of every
     agreement and covenant of this Indenture on the part of the Issuer to be
     performed or observed, all as provided herein;

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

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

             (iv)  the Issuer shall have received an Opinion of Counsel (and
     shall have delivered copies thereof to the Indenture Trustee) to the effect
     that such transaction

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<PAGE>

     will not have any material adverse tax consequence to the Issuer, any
     Noteholder or any Certificateholder;

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

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

             (vii) if no Insurer Default shall have occurred and be continuing,
     the Issuer shall have given the Insurer written notice of such
     consolidation or merger at least 20 Business Days prior to the consummation
     of such consolidation or merger and shall have received the prior written
     approval of the Insurer of such consolidation or merger and 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) Other than as specifically contemplated by the Transaction
Documents, the Issuer shall not convey or transfer any of its properties or
assets, including those included in the Trust Estate, to any other Person,
unless:

             (i)   the Person that acquires by conveyance or transfer the
     properties or assets of the Issuer the conveyance or transfer of which is
     hereby restricted (A) shall be a United States citizen or a Person
     organized and existing under the laws of the United States of America or
     any State, (B) shall expressly assume, by an indenture supplemental hereto,
     executed and delivered to the Indenture Trustee, in form satisfactory to
     the Indenture Trustee and the Insurer (if no Insurer Default shall have
     occurred and be continuing), the due and punctual payment of the principal
     of and interest on all Notes and the performance or observance of every
     agreement and covenant of this Indenture on the part of the Issuer to be
     performed or observed, all as provided herein, (C) shall 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
     the Holders of the Notes, (D) unless otherwise provided in such
     supplemental indenture, shall 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) shall 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;

                                       29

<PAGE>

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

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

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

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

             (vii) if no Insurer Default shall have occurred and be continuing,
     the Issuer shall have given the Insurer written notice of such transaction
     at least 20 Business Days prior to the consummation of such transaction and
     shall have received the prior written approval of the Insurer of such
     transaction and the Person that acquires by conveyance or transfer the
     properties or assets of the Issuer has a net worth, immediately after such
     transaction, that is (A) greater than zero and (B) not less than the net
     worth of the Issuer immediately prior to giving effect to such transaction.

         SECTION 3.11 Successor or Transferee.

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

         (b) Upon any conveyance or transfer of all the properties and assets of
the Issuer in accordance with Section 3.10(b), CarMax Auto Owner Trust 2002-1
shall be released from every covenant and agreement of this Indenture to be
observed or performed on the part of the Issuer with respect to the Notes
immediately upon the delivery of written notice to the Indenture Trustee, the
Depositor and the Insurer stating that CarMax Auto Owner Trust 2002-1 is to be
so released.

         SECTION 3.12 No Other Business. The Issuer shall not engage in any
business other than financing, acquiring, owning and pledging the Receivables in
the manner contemplated by this Indenture and the other Transaction Documents
and activities incidental thereto.

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

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<PAGE>

         SECTION 3.14 Servicer's Obligations. The Issuer shall cause the
Servicer to comply with the Sale and Servicing Agreement.

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

         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. 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 otherwise with
respect to any ownership or equity interest or security in or of the Issuer or
to the Servicer, (ii) redeem, purchase, retire or otherwise acquire for value
any such ownership or equity interest or security or (iii) set aside or
otherwise segregate any amounts for any such purpose; provided, however, that
the Issuer may make, or cause to be made, distributions as contemplated by, and
to the extent funds are available for such purpose under, the Sale and Servicing
Agreement, the Trust Agreement or this Indenture. The Issuer shall not, directly
or indirectly, make payments to or distributions from the Collection Account,
the Note Payment Account, the Certificate Payment Account or the Reserve Account
except in accordance with this Indenture and the other Transaction Documents.

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

         SECTION 3.19 Removal of Administrator. For so long as any Notes are
Outstanding, the Issuer shall not remove the Administrator without cause unless
the Rating Agency Condition shall have been satisfied with respect to such
removal and, unless an Insurer Default shall have occurred and be continuing,
the Insurer shall have consented to such removal.

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

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<PAGE>

                                   ARTICLE IV
                           SATISFACTION AND DISCHARGE

         SECTION 4.1 Satisfaction and Discharge of Indenture. This Indenture
shall cease to be of further effect with respect to the Notes except as to (i)
rights of registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments
of principal thereof and interest thereon, (iv) Sections 3.3, 3.4, 3.5, 3.8,
3.10, 3.12, 3.13, 3.16 and 3.17, (v) the rights, obligations and immunities of
the Indenture Trustee hereunder (including the rights of the Indenture Trustee
under Section 6.7 and the obligations of the Indenture Trustee under Section
4.3), and (vi) the rights of Noteholders as beneficiaries hereof with respect to
the property so deposited with the Indenture Trustee payable to all or any of
them, and the Indenture Trustee, on demand of and at the expense of the Issuer,
shall execute proper instruments acknowledging satisfaction and discharge of
this Indenture with respect to the Notes, when:

         (A) the Policy has been terminated in accordance with its terms and
returned to the Insurer for cancellation;

         (B) either

             (1) all Notes of all Classes 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 2.6 and (ii)
     Notes for whose payment money has theretofore been irrevocably deposited in
     trust or segregated and held in trust by the Issuer and thereafter repaid
     to the Issuer or discharged from such trust, as provided in Section 3.3)
     have been delivered to the Indenture Trustee for cancellation; or

             (2) all Notes not theretofore delivered to the Indenture Trustee
     for cancellation have become due and payable and the Issuer has irrevocably
     deposited or caused to be irrevocably deposited with the Indenture Trustee,
     in trust, cash or direct obligations of or obligations guaranteed by the
     United States of America (which will mature prior to the date needed), in
     an amount sufficient to pay and discharge the entire indebtedness on such
     Notes when due on the applicable Class Final Distribution Date or
     Redemption Date (if Notes shall have been called for redemption pursuant to
     Section 10.1(a)), as the case may be;

         (C) the Issuer has paid or caused to be paid all other sums payable by
the Issuer hereunder and under the other Transaction Documents;

         (D) the Issuer has delivered to the Depositor, the Indenture Trustee
and the Insurer an Officer's Certificate, an Opinion of Counsel and (if required
by the TIA or the Indenture Trustee) an Independent Certificate from a firm of
certified public accountants, each meeting the applicable requirements of
Section 11.1(a) and, subject to Section 11.2, each stating that all conditions
precedent provided for in this Indenture relating to the satisfaction and
discharge of this Indenture have been complied with; and

         (E) the Issuer has delivered to the Depositor, the Indenture Trustee
and the Insurer an Opinion of Counsel to the effect that the satisfaction and
discharge of this Indenture

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<PAGE>

pursuant to this Section 4.1 will not cause any Noteholder to be treated as
having sold or exchanged any of its Notes for purposes of Section 1001 of the
Code.

         SECTION 4.2 Satisfaction, Discharge and Defeasance of the Notes.

         (a) Upon satisfaction of the conditions set forth in subsection (b)
below, the Issuer shall be deemed to have paid and discharged the entire
indebtedness on all the Notes Outstanding, and the provisions of this Indenture,
as it relates to such Notes, shall no longer be in effect (and the Indenture
Trustee, at the expense of the Issuer, shall execute proper instruments
acknowledging the same), except as to:

             (i)   the rights of the Noteholders to receive, from the trust
     funds described in subsection (b)(i), payment of the principal of and
     interest on the Notes Outstanding at maturity of such principal or
     interest;

             (ii)  the obligations of the Issuer with respect to the Notes under
     Sections 2.5, 2.6, 3.2 and 3.3;

             (iii) the obligations of the Issuer to the Indenture Trustee under
     Section 6.7; and

             (iv)  the rights, powers, trusts and immunities of the Indenture
     Trustee hereunder and the duties of the Indenture Trustee hereunder.

         (b) The satisfaction, discharge and defeasance of the Notes pursuant to
subsection (a) of this Section 4.2 is subject to the satisfaction of all of the
following conditions:

             (i)   the Issuer or the Insurer has deposited or caused to be
     deposited irrevocably (except as provided in Section 4.4) with the
     Indenture Trustee as trust funds in trust, specifically pledged as security
     for, and dedicated solely to, the benefit of the Holders of the Notes,
     which, through the payment of interest and principal in respect thereof in
     accordance with their terms will provide, not later than one day prior to
     the due date of any payment referred to below, money in an amount
     sufficient, in the opinion of a nationally recognized firm of independent
     certified public accountants expressed in a written certification thereof
     delivered to the Indenture Trustee, to pay and discharge the entire
     indebtedness on the Notes Outstanding, for principal thereof and interest
     thereon to the date of such deposit (in the case of Notes that have become
     due and payable) or to the maturity of such principal and interest, as the
     case may be;

             (ii)  such deposit will not result in a breach or violation of, or
     constitute an event of default under, any Transaction Document or other
     agreement or instrument to which the Issuer is bound;

             (iii) no Event of Default has occurred and is continuing on the
     date of such deposit or on the ninety-first (91st) day after such date;

             (iv)  the Issuer has delivered to the Depositor, the Indenture
     Trustee and the Insurer an Opinion of Counsel to the effect that the
     satisfaction, discharge and

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<PAGE>

     defeasance of the Notes pursuant to this Section 4.2 will not cause any
     Noteholder to be treated as having sold or exchanged any of its Notes for
     purposes of Section 1001 of the Code; and

             (v)   the Issuer has delivered to the Depositor, the Indenture
     Trustee and the Insurer an Officer's Certificate and an Opinion of Counsel,
     each stating that all conditions precedent provided for in this Indenture
     relating to the defeasance contemplated by this Section 4.2 have been
     complied with.

         SECTION 4.3 Application of Trust Money. All monies deposited with the
Indenture Trustee pursuant to Section 4.1 shall be held in trust and applied by
the Indenture Trustee, in accordance with the provisions of the Notes and this
Indenture, to the payment, either directly or through any Paying Agent, to the
Holders of the Notes for the payment or redemption of which such monies have
been deposited with the Indenture Trustee, of all sums due and to become due
thereon for principal and interest, but such monies 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 4.4 Repayment of Monies Held by Paying Agent. In connection
with the satisfaction and discharge of this Indenture with respect to the Notes,
all monies then held by any Paying Agent other than the Indenture Trustee under
the provisions of this Indenture with respect to such Notes shall, upon demand
of the Issuer, be paid to the Indenture Trustee to be held and applied according
to Section 3.3, and thereupon such Paying Agent shall be released from all
further liability with respect to such monies.

                                    ARTICLE V
                                    REMEDIES

         SECTION 5.1 Events of Default. "Event of Default" means the occurrence
of any one of the following events (whatever the reason for such event and
whether such event shall be voluntary or involuntary or be effected by operation
of law or pursuant to any judgment, decree or order of any court or any order,
rule or regulation of any administrative or governmental body):

             (i)   default in the payment of any interest on any Note when the
     same becomes due and payable and such default shall continue for a period
     of five (5) Business Days;

             (ii)  default in the payment of any principal due and payable on
     any Class of Notes;

             (iii) default in the observance or performance of any material
     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 specifically dealt with elsewhere in this Section 5.1), and such default
     shall continue or not be cured for a period of sixty (60) days after there
     shall have been given, by registered or certified mail, to the Issuer by
     the Depositor, the Indenture Trustee or the Insurer or to the Issuer, the
     Depositor, the Indenture Trustee and the Insurer by the Holders of Notes
     evidencing not

                                       34

<PAGE>

     less than 25% of the Note Balance, a written notice specifying such default
     and requiring it to be remedied and stating that such notice is a notice of
     Default hereunder;

             (iv)  any representation or warranty of the Issuer made in this
     Indenture or in any certificate 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 the circumstance or condition
     in respect of which such representation or warranty was incorrect shall not
     have been eliminated or otherwise cured for a period of thirty (30) days
     after there shall have been given, by registered or certified mail, to the
     Issuer by the Depositor, the Indenture Trustee or the Insurer or to the
     Issuer, the Depositor, the Indenture Trustee and the Insurer by the Holders
     of Notes evidencing not less than 25% of the Note Balance, a written notice
     specifying such incorrect representation or warranty and requiring it to be
     remedied and stating that such notice is a notice of Default hereunder;

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

             (vi)  the commencement by the Issuer of a voluntary case under any
     applicable federal or state bankruptcy, insolvency or other similar law now
     or hereafter in effect, or the consent by the Issuer to the entry of an
     order for relief in an involuntary case under any such law, or the consent
     by the Issuer to the appointment or taking possession by a receiver,
     liquidator, assignee, custodian, trustee, sequestrator or similar official
     of the Issuer or for any substantial part of the Trust Estate, or the
     making by the Issuer of any general assignment for the benefit of
     creditors, or the failure by the Issuer generally to pay its debts as such
     debts become due, or the taking of any action by the Issuer in furtherance
     of any of the foregoing; or

             (vii) the submission of a claim under the Policy;

provided, however, that unless an Insurer Default shall have occurred and be
continuing, neither the Depositor, the Indenture Trustee nor the Noteholders may
declare an Event of Default. If no Insurer Default shall have occurred and be
continuing, an Event of Default shall occur only upon delivery by the Insurer to
the Depositor and the Indenture Trustee of notice of the occurrence of such
Event of Default.

         The Issuer shall deliver to the Indenture Trustee, the Depositor and
the Insurer, within five (5) days after the occurrence of any event that, with
notice or the lapse of time or both, would become an Event of Default under
clause (iii) or (iv), written notice of such Default in the form of an Officer's
Certificate, the status of such Default and what action the Issuer is taking or
proposes to take with respect to such Default.

                                       35

<PAGE>

         SECTION 5.2 Acceleration of Maturity; Rescission and Annulment.

         (a) If an Event of Default shall have occurred and be continuing and no
Insurer Default shall have occurred and be continuing, the Insurer shall have
the right, but not the obligation, upon prior written notice to each Rating
Agency, to declare the Notes to be immediately due and payable by written notice
to the Issuer, the Depositor, the Servicer and the Indenture Trustee, and upon
any such declaration the unpaid principal amount of the Notes, together with
accrued and unpaid interest thereon through the date of acceleration, shall
become immediately due and payable. The Indenture Trustee shall have no
discretion with respect to the acceleration of the Notes under the foregoing
circumstances. In the event of any such acceleration of the Notes, the Indenture
Trustee shall continue to submit claims under the Policy with respect to the
Notes and the Certificates.

         (b) If an Event of Default shall have occurred and be continuing and an
Insurer Default shall have occurred and be continuing, the Indenture Trustee or
the Holders of Notes evidencing not less than 66 2/3% of the Note Balance may,
upon prior written notice to each Rating Agency, declare the Notes to be
immediately due and payable by written notice to the Issuer (and to the
Indenture Trustee if given by Noteholders), the Depositor and the Servicer, and
upon any such declaration the unpaid principal amount of the Notes, together
with accrued and unpaid interest thereon through the date of acceleration, shall
become immediately due and payable.

         (c) If the Notes have been declared immediately due and payable
following an Event of Default, before a judgment or decree for payment of the
amount due has been obtained by the Indenture Trustee as hereinafter provided in
this Article V, the Holders of Notes evidencing not less than 66 2/3% of the
Note Balance, by written notice to the Issuer, the Depositor and the Indenture
Trustee, may rescind and annul such declaration of acceleration and its
consequences if:

             (i)  the Issuer has paid or deposited with the Indenture Trustee a
     sum sufficient to pay all principal of and interest on the Notes and all
     other amounts that would then be due hereunder or upon the Notes if the
     Event of Default giving rise to such acceleration had not occurred; and

             (ii) all Events of Default, other than the nonpayment of the
     principal of the Notes that has become due solely by such acceleration,
     have been cured or waived as provided in Section 5.12.

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

         (d) If an Event of Default shall have occurred and be continuing and no
Insurer Default shall have occurred and be continuing, the Insurer may elect to
prepay all or any portion of the Note Balance on any Distribution Date by
depositing the principal amount to be prepaid, plus accrued but unpaid interest
thereon to such Distribution Date, in the Collection Account in immediately
available funds no later than 5:00 p.m., New York City time, on the Business Day
preceding such Distribution Date; provided, however, that the Insurer shall
fulfill its obligations under the Policy.

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<PAGE>

         (e) If an Event of Default shall have occurred and be continuing, no
Insurer Default shall have occurred and be continuing and the Note Balance shall
have been paid in full, the Insurer may elect to prepay all or any portion of
the Certificate Balance on any Distribution Date by depositing the principal
amount to be prepaid, plus accrued but unpaid interest thereon to such
Distribution Date, in the Collection Account in immediately available funds no
later than 5:00 p.m., New York City time, on the Business Day preceding such
Distribution Date; provided, however, that the Insurer shall fulfill its
obligations under the Policy.

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

         (a) If (i) default is made in the payment of any interest on any Note
when the same becomes due and payable, and such default continues for a period
of five (5) Business Days, or (ii) default is made in the payment of the
principal of any Note when the same becomes due and payable, the Issuer shall,
upon demand of the Indenture Trustee, pay to the Indenture Trustee, for the
benefit of the Holders of the Notes, the amount then due and payable on the
Notes for principal and interest, with interest upon the overdue principal at
the applicable Note Rate and, to the extent payment at such rate of interest
shall be legally enforceable, upon overdue installments of interest at the
applicable Note Rate and in addition thereto such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Indenture
Trustee and its agents and counsel and other amounts due and owing to the
Indenture Trustee pursuant to Section 6.7.

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

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

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

                                       37

<PAGE>

therein expressed or by declaration or otherwise and irrespective of whether the
Indenture Trustee shall have made any demand pursuant to the provisions of this
Section 5.3, shall be entitled and empowered, by intervention in such
Proceedings or otherwise:

             (i)   to file and prove a claim or claims for the whole amount of
     principal and interest owing and unpaid in respect of the Notes and to file
     such other papers or documents as may be necessary or advisable in order to
     have the claims of the Indenture Trustee (including any claim for
     reasonable compensation to the Indenture Trustee and each predecessor
     Indenture Trustee, and their respective agents and attorneys, and all other
     amounts due and owing to the Indenture Trustee pursuant to Section 6.7) and
     of the Noteholders allowed in such Proceedings;

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

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

             (iv)  to file such proofs of claim and other papers or documents as
     may be necessary or advisable in order to have the claims of the Indenture
     Trustee or the Noteholders 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 the Noteholders to make
payments to the Indenture Trustee and, in the event that the Indenture Trustee
shall consent to the making of payments directly to the Noteholders, to pay to
the Indenture Trustee such amounts as shall be sufficient to cover reasonable
compensation to the Indenture Trustee and each predecessor Indenture Trustee,
and their respective agents and attorneys, and all other amounts due and owing
to the Indenture Trustee pursuant to Section 6.7.

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

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

                                       38

<PAGE>

and their respective agents and attorneys, shall be for the ratable benefit of
the Holders of the Notes.

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

         SECTION 5.4 Remedies.

         (a) If an Event of Default shall have occurred and be continuing, the
Indenture Trustee shall, at the written direction of the Insurer (if no Insurer
Default shall have occurred and be continuing), or at the written direction of
the Holders of Notes evidencing not less than 66 2/3% of the Note Balance (if an
Insurer Default shall have occurred and be continuing), take one or more of the
following actions as so directed (subject to Section 5.5):

             (i)   institute Proceedings in its own name and as trustee of an
     express trust for the collection of all amounts then 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 the Notes monies adjudged due;

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

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

             (iv)  sell the Trust Estate or any portion thereof or rights or
     interest therein at one or more public or private sales called and
     conducted in any manner permitted by law;

provided, however, that the Indenture Trustee may not sell or otherwise
liquidate the Trust Estate at the direction of the Insurer following an Event of
Default, other than an Event of Default described in Section 5.1(v), (vi) or
(vii), unless the proceeds of such sale or liquidation will be sufficient to pay
in full the Note Balance and all accrued but unpaid interest on the Outstanding
Notes; and, provided further, that the Indenture Trustee may not sell or
otherwise liquidate the Trust Estate at the direction of the Holders following
an Event of Default, other than an Event of Default described in Section 5.1(i)
or (ii), unless (A) the Holders of 100% of the Note Balance consent thereto, (B)
the proceeds of such sale or liquidation will be sufficient to pay in full the
Note Balance and all accrued but unpaid interest on the Outstanding Notes and
all amounts due to the Insurer under the Insurance Agreement or (C) the
Indenture Trustee determines that the Trust Estate will not continue to provide
sufficient funds for the payment of principal of and interest on the Notes as
they would have become due if the Notes had not been declared immediately due
and payable, and the Indenture Trustee obtains the consent of the Holders of
Notes evidencing not less than 66 2/3% of the Note Balance. In determining such
sufficiency or insufficiency with respect to clauses (B) and (C) above, the
Indenture Trustee may, but need not,

                                       39

<PAGE>

obtain and rely upon an opinion of an Independent investment banking or
accounting firm of national reputation as to the feasibility of such proposed
action and as to the sufficiency of the Trust Estate for such purpose.

         (b) If the Indenture Trustee collects any money or property pursuant to
this Section 5.4, it shall pay out such money or property in the following order
of priority:

             (i)    to the Indenture Trustee, all amounts due to the Indenture
     Trustee as compensation pursuant to Section 6.7;

             (ii)   to the Servicer, all amounts due to the Servicer as
     compensation pursuant to Section 3.8 of the Sale and Servicing Agreement;

             (iii)  to the Noteholders, all accrued but unpaid interest on the
     Notes;

             (iv)   to the Noteholders, the Note Balance;

             (v)    to the Certificateholders, all accrued but unpaid interest
     on the Certificates;

             (vi)   to the Certificateholders, the outstanding principal balance
     of the Certificates;

             (vii)  to the Insurer, all overdue Insurance Premiums;

             (viii) to the Insurer, the aggregate amount of any unreimbursed
     payments under the Policy, including any amount deposited by the Insurer
     pursuant to Section 5.2(d) or (e), to the extent payable to the Insurer
     under the Insurance Agreement plus accrued interest on any unreimbursed
     payments under the Policy, including any amount deposited by the Insurer
     pursuant to Section 5.2(d) or (e), at the rate provided in the Insurance
     Agreement plus any other amounts due the Insurer under the Insurance
     Agreement plus any unreimbursed Insurer Defense Costs;

             (ix)   if a Successor Servicer has been appointed pursuant to
     Section 8.2 of the Sale and Servicing Agreement, to such Successor
     Servicer, any unpaid Transition Costs due in connection with such transfer
     of servicing plus any Additional Servicing Fee due to such Successor
     Servicer; and

             (x)    to the Seller, as holder of the Residual Interest, any
     remaining money or property.

         (c) The Indenture Trustee may fix a record date and payment date for
any payment to Noteholders pursuant to this Section 5.4. At least five (5) days
before such record date, the Indenture Trustee on behalf of the Issuer shall
mail to each Noteholder a notice that states the record date, the payment date
and the amount to be paid.

         SECTION 5.5 Optional Preservation of the Receivables. If the Notes have
been declared immediately due and payable following an Event of Default, and
such declaration

                                       40

<PAGE>

and its consequences have not been rescinded and annulled, the Indenture Trustee
may, but need not, elect to maintain possession of the Trust Estate and apply
proceeds as if there had been no declaration of acceleration; provided, however,
that the Available Funds shall be applied in accordance with such declaration of
acceleration in the manner specified in Section 4.6(d) of the Sale and Servicing
Agreement. It is the desire of the parties hereto and the Noteholders that there
be at all times sufficient funds for the payment of principal of and interest on
the Notes, and the Indenture Trustee shall take such desire into account when
determining whether or not to maintain possession of the Trust Estate. In
determining whether to maintain possession of the Trust Estate, the Indenture
Trustee may, but need not, obtain and rely upon an opinion of an Independent
investment banking or accounting firm of national reputation as to the
feasibility of such proposed action and as to the sufficiency of the Trust
Estate for such purpose.

         SECTION 5.6 Limitation of Suits. No Holder of any Note shall have any
right to institute any Proceeding with respect to this Indenture or for the
appointment of a receiver or trustee, or for any other remedy hereunder, unless:

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

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

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

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

             (v)   no direction inconsistent with such written request has been
     given to the Indenture Trustee during such 60-day period by the Holders of
     Notes evidencing not less than 51% of the Note Balance; and

             (vi)  an Insurer Default has occurred and is continuing.

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

         In the event the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Holders of Notes,
each evidencing less than 51% of the Note Balance, the Indenture Trustee in its
sole discretion may determine what action, if any, shall be taken,
notwithstanding any other provisions of this Indenture.

                                       41

<PAGE>

         SECTION 5.7  Unconditional Rights of Noteholders to Receive Principal
and Interest. Notwithstanding any other provisions of this Indenture, the Holder
of any Note shall have the right, which is absolute and unconditional, to
receive payment of the principal of and interest, if any, on such Note on the
respective due dates thereof expressed in such Note or in this Indenture (or, in
the case of redemption, on the Redemption Date) and to institute suit for the
enforcement of any such payment, and such right shall not be impaired without
the consent of such Holder.

         SECTION 5.8  Restoration of Rights and Remedies. If the Indenture
Trustee, the Insurer or any Noteholder has instituted any Proceeding to enforce
any right or remedy under this Indenture and such Proceeding has been
discontinued or abandoned for any reason or has been determined adversely to the
Indenture Trustee, the Insurer or such Noteholder, then and in every such case
the Issuer, the Indenture Trustee, the Insurer and the Noteholders shall,
subject to any determination in such Proceeding, be restored severally and
respectively to their former positions hereunder, and thereafter all rights and
remedies of the Indenture Trustee and the Noteholders shall continue as though
no such Proceeding had been instituted.

         SECTION 5.9  Rights and Remedies Cumulative. No right or remedy herein
conferred upon or reserved to the Indenture Trustee, the Insurer or the
Noteholders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

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

         SECTION 5.11 Control by Noteholders. The Holders of Notes evidencing
not less than 51% of the Note Balance shall have the right to direct the time,
method and place of conducting any Proceeding for any remedy available to the
Indenture Trustee with respect to the Notes or exercising any trust or power
conferred on the Indenture Trustee; provided, however, 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 5.4, any written
     direction to the Indenture Trustee to sell or liquidate the Trust Estate
     shall be by the Holders of Notes evidencing not less than 100% of the Note
     Balance;

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<PAGE>

             (iii) if the conditions set forth in Section 5.5 have been
     satisfied and the Indenture Trustee elects to retain the Trust Estate
     pursuant to such section, then any written direction to the Indenture
     Trustee by the Holders of Notes evidencing less than 100% of the Note
     Balance to sell or liquidate the Trust Estate shall be of no force and
     effect; and

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

         Notwithstanding the rights of Noteholders set forth in this Section
5.11, subject to Section 6.1, the Indenture Trustee need not take any action
that it reasonably believes might involve it in costs, expenses and liabilities
for which it will not be adequately indemnified or might materially adversely
affect the rights of any Noteholders not consenting to such action.

         SECTION 5.12 Waiver of Past Defaults. Prior to the declaration of the
acceleration of the maturity of the Notes as provided in Section 5.2, the
Insurer (if no Insurer Default shall have occurred and be continuing) or the
Holders of Notes evidencing not less than 51% of the Note Balance, with the
consent of the Insurer (if no Insurer Default shall have occurred and be
continuing), may, on behalf of all Noteholders, waive any past Default or Event
of Default and its consequences except a Default or Event of Default (i) in the
payment of principal of or interest on any of the Notes or (ii) in respect of a
covenant or provision hereof that cannot be amended, supplemented or modified
without the consent of all the Holders. Upon any such waiver, the Issuer, the
Indenture Trustee, the Insurer and the Holders shall be restored to their former
positions and rights hereunder, respectively, but no such waiver shall extend to
any subsequent or other Default or Event of Default or impair any right
consequent thereto. Upon any such waiver, such Default or Event of Default shall
cease to exist and be deemed to have been cured and not to have occurred, and
any Event of Default arising therefrom shall be deemed to have been cured and
not to have occurred, for every purpose of this Indenture, but no such waiver
shall extend to any subsequent or other Default or Event of Default or impair
any right consequent thereto.

         SECTION 5.13 Undertaking for Costs. All parties to this Indenture
agree, and each Holder of any Note by such Holder's acceptance thereof shall be
deemed to have agreed, that any court may in its discretion require, in any suit
for the enforcement of any right or remedy under this Indenture, or in any suit
against the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorney's 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; provided,
however, that the provisions of this Section 5.13 shall not apply to (i) any
suit instituted by the Indenture Trustee, (ii) any suit instituted by any
Noteholder or group of Noteholders, in each case holding Notes evidencing in the
aggregate more than 10% of the Note Balance or (iii) 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).

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<PAGE>

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

         SECTION 5.15 Action on Notes. The Indenture Trustee's right to seek and
recover judgment on the Notes or under this Indenture shall not be affected by
the seeking, obtaining or application of any other relief under or with respect
to this Indenture. Neither the lien of this Indenture nor any rights or remedies
of the Indenture Trustee or the Noteholders shall be impaired by the recovery of
any judgment by the Indenture Trustee against the Issuer or by the levy of any
execution under such judgment upon any portion of the Trust Estate or upon any
of the assets of the Issuer. Any money or property collected by the Indenture
Trustee shall be applied in accordance with Section 5.4(b).

         SECTION 5.16 Performance and Enforcement of Certain Obligations.

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

         (b) If an Event of Default shall have occurred and be continuing, the
Indenture Trustee may, and at the direction (which direction shall be in writing
or by telephone (confirmed in writing promptly thereafter)) of the Holders of
Notes evidencing not less than 66 2/3% of the Note Balance shall, exercise all
rights, remedies, powers, privileges and claims of the Issuer against the
Depositor, the Seller or the Servicer under or in connection with the Sale and
Servicing Agreement or against the Seller under or in connection with the
Receivables Purchase Agreement, including the right or power to take any action
to compel or secure performance or observance by the Depositor, the Seller or
the Servicer, as the case may be, of its obligations to the Issuer thereunder
and to give any consent, request, notice, direction, approval, extension or
waiver under the Sale and Servicing Agreement or the Receivables Purchase
Agreement, as the case may be, and any right of the Issuer to take such action
shall be suspended.

                                       44

<PAGE>

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

          (d) If an Event of Default shall have occurred and be continuing, the
Indenture Trustee may, and at the direction (which direction shall be in writing
or by telephone (confirmed in writing promptly thereafter)) of the Holders of
Notes evidencing not less than 66 2/3% of the Note Balance shall, exercise all
rights, remedies, powers, privileges and claims of the Depositor against the
Seller under or in connection with the Receivables Purchase Agreement, including
the right or power to take any action to compel or secure performance or
observance by the Seller of its obligations to the Depositor thereunder and to
give any consent, request, notice, direction, approval, extension or waiver
under the Receivables Purchase Agreement, and any right of the Depositor to take
such action shall be suspended.

                                       45

<PAGE>

                                   ARTICLE VI
                              THE INDENTURE TRUSTEE

          SECTION 6.1 Duties of Indenture Trustee.

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

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

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

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

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

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

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

              (iii) the Indenture Trustee shall not be liable with respect to
    any action it takes or omits to take in good faith in accordance with a
    direction received by it pursuant to Section 5.11.

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

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

          (f) No provision of this Indenture shall require the Indenture Trustee
to expend or risk its own funds or otherwise incur financial liability in the
performance of any of its duties hereunder or in the exercise of any of its
rights or powers hereunder if the Indenture

                                       46

<PAGE>

Trustee shall have reasonable grounds to believe that repayment of such funds or
indemnity satisfactory to it against such risk or liability is not assured or
provided to it.

          (g) Every provision of this Indenture relating to the conduct or
affecting the liability of or affording protection to the Indenture Trustee
shall be subject to the provisions of this Section 6.1 and the TIA.

          (h) The Indenture Trustee shall not be charged with knowledge of any
Event of Default unless either (1) a Responsible Officer shall have actual
knowledge of such Event of Default or (2) written notice of such Event of
Default shall have been given to the Indenture Trustee in accordance with the
provisions of this Indenture.

          SECTION 6.2 Rights of Indenture Trustee.

          (a) The Indenture Trustee may conclusively rely on any document
believed by it to be genuine and to have been signed or presented by the proper
Person.

          (b) Before the Indenture Trustee acts or refrains from acting, it may
request and shall be entitled to receive an Officer's Certificate or an Opinion
of Counsel. The Indenture Trustee shall not be liable for any action it takes or
omits to take in good faith in reliance on an Officer's Certificate or Opinion
of Counsel unless it is proved that the Indenture Trustee was negligent in such
reliance.

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

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

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

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

          (g) The Indenture Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report,

                                       47

<PAGE>

notice, request, direction, consent, order, bond, debenture or other paper or
document, but the Indenture Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see fit, and, if
the Indenture Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises
of the Issuer, personally or by agent or attorney.

          SECTION 6.3 Individual Rights of Indenture Trustee. The Indenture
Trustee, in its individual or any other capacity, may become the owner or
pledgee of Notes and may otherwise deal with the Issuer or its Affiliates with
the same rights it would have if it were not Indenture Trustee. Any Paying
Agent, Note Registrar, co-registrar or co-paying agent hereunder may do the same
with like rights.

          SECTION 6.4 Indenture Trustee's Disclaimer. The Indenture Trustee (i)
shall not be responsible for, and makes no representation as to, the validity or
adequacy of this Indenture or the Notes and (ii) shall not be accountable for
the Issuer's use of the proceeds from the Notes or responsible for any statement
of the Issuer in this Indenture or in any document issued in connection with the
sale of the Notes or in the Notes other than the Indenture Trustee's certificate
of authentication.

          SECTION 6.5 Notice of Defaults. If a Default occurs and is continuing
and if it is known to a Responsible Officer of the Indenture Trustee, the
Indenture Trustee shall mail to each Noteholder notice of such Default within
ninety (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 Indenture Trustee may
withhold the notice if and so long as a committee of its Responsible Officers in
good faith determines that withholding the notice is in the interests of
Noteholders.

          SECTION 6.6 Reports by Indenture Trustee to Holders. The Indenture
Trustee shall deliver, within a reasonable period of time after the end of each
calendar year, to each Person who at any time during such calendar year was a
Noteholder, such information furnished to the Indenture Trustee as may be
required to enable such Person to prepare its federal and state income tax
returns.

          SECTION 6.7 Compensation and Indemnity.

          (a) The Administrator, on behalf of the Issuer, shall pay to the
Indenture Trustee from time to time reasonable compensation for its services.
The Indenture Trustee's compensation shall not be limited by any law on
compensation of a trustee of an express trust. The Administrator, on behalf of
the Issuer, shall reimburse the Indenture Trustee for all expenses, advances and
disbursements reasonably incurred or made by it, including costs of collection,
in addition to the compensation for its services; provided, however, that the
Administrator need not reimburse the Indenture Trustee for any expense incurred
through the Indenture Trustee's willful misconduct, negligence, or bad faith.
Such expenses shall include the reasonable compensation and expenses,
disbursements and advances of the Indenture Trustee's agents, counsel,
accountants and experts. The Administrator, on behalf of the Issuer, shall
indemnify the Indenture Trustee for, and hold it and its officers, directors,
employees, representatives and agents, harmless against, any and all loss,
liability or expense (including

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reasonable attorneys' fees and expenses) incurred by it in connection with the
administration of this trust and the performance of its duties hereunder;
provided, however, that the Administrator need not indemnify the Indenture
Trustee for, or hold it harmless against, any such loss, liability or expense
incurred through the Indenture Trustee's willful misconduct, negligence, or bad
faith. The Indenture Trustee shall notify the Issuer and the Administrator
promptly of any claim for which it may seek indemnity. Any failure by the
Indenture Trustee to so notify the Issuer and the Administrator shall not,
however, relieve the Administrator of its obligations hereunder. The
Administrator, on behalf of the Issuer, shall defend any such claim. The
Indenture Trustee may have separate counsel in connection with the defense of
any such claim, and the Administrator, on behalf of the Issuer, shall pay the
fees and expenses of such counsel.

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

          SECTION 6.8 Replacement of Indenture Trustee.

          (a) No resignation or removal of the Indenture Trustee, and no
appointment of a successor Indenture Trustee, shall become effective until the
acceptance of appointment by the successor Indenture Trustee pursuant to this
Section 6.8. The Indenture Trustee may resign at any time by so notifying the
Issuer, the Depositor, the Noteholders and the Insurer. The Insurer (if no
Insurer Default shall have occurred and be continuing) or the Holders of Notes
evidencing not less than 51% of the Note Balance, with the consent of the
Insurer (if no Insurer Default shall have occurred and be continuing), may
remove the Indenture Trustee without cause by notifying the Indenture Trustee
(with a copy to the Issuer, the Depositor, the Insurer and the Rating Agencies)
of such removal and, following such removal, may appoint a successor Indenture
Trustee. The Issuer shall remove the Indenture Trustee if:

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

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

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

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

          If the Indenture Trustee resigns or is removed or if a vacancy exists
in the office of Indenture Trustee for any reason (the Indenture Trustee in such
event being referred to herein as the retiring Indenture Trustee), the
Administrator, with the consent of the Insurer (if no Insurer Default shall have
occurred and be continuing), shall promptly appoint a successor Indenture
Trustee.

          (b) Any successor Indenture Trustee shall deliver a written acceptance
of its appointment to the retiring Indenture Trustee, the Issuer, the Depositor
and the Insurer. Upon

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delivery of such written acceptance, the resignation or removal of the retiring
Indenture Trustee shall become effective and the successor Indenture Trustee
shall have all the rights, powers and duties of the Indenture Trustee under this
Indenture. The successor Indenture Trustee shall mail a notice of its succession
to the Noteholders. The retiring Indenture Trustee shall promptly transfer all
property held by it as Indenture Trustee to the successor Indenture Trustee.

          (c) If a successor Indenture Trustee does not take office within sixty
(60) days after the retiring Indenture Trustee resigns or is removed, the
retiring Indenture Trustee, the Issuer or the Holders of Notes evidencing not
less than 51% of the Note Balance may petition any court of competent
jurisdiction for the appointment of a successor Indenture Trustee. If the
Indenture Trustee fails to comply with Section 6.11, any Noteholder may petition
any court of competent jurisdiction for the removal of the Indenture Trustee and
the appointment of a successor Indenture Trustee.

          (d) Notwithstanding the replacement of the Indenture Trustee pursuant
to this Section 6.8, the Administrator's obligations under Section 6.7 shall
continue for the benefit of the retiring Indenture Trustee.

          SECTION 6.9 Successor Indenture Trustee by Merger.

          (a) If the Indenture Trustee consolidates with, merges or converts
into, or transfers all or substantially all its corporate trust business or
assets to, another corporation or banking association, the resulting, surviving
or transferee corporation or banking association without any further act shall
be the successor Indenture Trustee; provided, however, that such corporation or
banking association must be otherwise qualified and eligible under Section 6.11.
The Indenture Trustee shall provide the Rating Agencies with prior written
notice of any such transaction.

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

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

          (a) Notwithstanding any other provisions of this Indenture, at any
time, for the purpose of meeting any legal requirement of any jurisdiction in
which any part of the Trust Estate may at the time be located, the Indenture
Trustee shall have the power and may execute and deliver an instrument to
appoint one or more Persons to act as a co-trustee or co-trustees, jointly with
the Indenture Trustee, or separate trustee or separate trustees, of all or any
part of the Trust Estate, and to vest in such Person or Persons, in such
capacity and for the benefit of the

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<PAGE>

Noteholders, such title to the Trust Estate, or any part hereof, and, subject to
the other provisions of this Section 6.10, such powers, duties, obligations,
rights and trusts as the Indenture Trustee may consider necessary or desirable.
No co-trustee or separate trustee under this Indenture shall be required to meet
the terms of eligibility as a successor trustee under Section 6.11 and no notice
of the appointment of any co-trustee or separate trustee shall be required under
Section 6.8.

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

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

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

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

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

          (d) Any separate trustee or co-trustee may at any time constitute the
Indenture Trustee its agent or attorney-in-fact with full power and authority,
to the extent permitted by law, to do any lawful act under or in respect of this
Indenture on its behalf and in its name. If any separate trustee or co-trustee
shall die, become incapable of acting, resign or be removed, all of its estates,
properties, rights, remedies and trusts shall vest in and be exercised by the
Indenture Trustee, to the extent permitted by law, without the appointment of a
new or successor trustee.

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<PAGE>

          SECTION 6.11 Eligibility; Disqualification. The Indenture Trustee
shall at all times satisfy the requirements of TIA Section 310(a). The Indenture
Trustee or its parent shall have a combined capital and surplus of at least
$50,000,000 as set forth in its most recent published annual report of condition
and shall have a long-term debt rating of investment grade by each of the Rating
Agencies or shall otherwise be acceptable to each of the Rating Agencies. The
Indenture Trustee shall comply with TIA Section 310(b).

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

                                   ARTICLE VII
                         NOTEHOLDERS' LISTS AND REPORTS

          SECTION 7.1 Issuer To Furnish Indenture Trustee Names and Addresses of
Noteholders. The Issuer shall furnish or cause to be furnished to the Indenture
Trustee (i) not more than five (5) days after each Record Date, a list, in such
form as the Indenture Trustee may reasonably require, of the names and addresses
of the Holders of Notes as of such Record Date and (ii) at such other times as
the Indenture Trustee may request in writing, within thirty (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 ten (10) days prior to the time such list is furnished;
provided, however, that so long as the Indenture Trustee is the Note Registrar
or the Notes are issued as Book-Entry Notes, no such list shall be required to
be furnished.

          SECTION 7.2 Preservation of Information; Communications to
Noteholders.

          (a) The Indenture Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of the Holders of Notes
contained in the most recent list furnished to the Indenture Trustee as provided
in Section 7.1 and the names and addresses of the Holders of Notes received by
the Indenture Trustee in its capacity as Note Registrar. The Indenture Trustee
may destroy any list furnished to it as provided in Section 7.1 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.

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

          SECTION 7.3 Reports by Issuer.

          (a) The Issuer shall:

              (i) file with the Indenture Trustee, within fifteen (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)

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<PAGE>

         that the Issuer may be required to file with the Commission pursuant to
         Section 13 or 15(d) of the Exchange Act;

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

                       (iii)  supply to the Indenture Trustee (and the Indenture
         Trustee shall transmit by mail to all Noteholders described in TIA
         Section 313(c)) such summaries of any information, documents and
         reports required to be filed by the Issuer pursuant to clauses (i) and
         (ii) of this Section 7.3(a) and by the rules and regulations prescribed
         from time to time by the Commission.

                (b)    Unless the Issuer otherwise determines, the fiscal year
of the Issuer shall correspond to the calendar year.

                SECTION 7.4 Reports by Indenture Trustee.

                (a)    If required by TIA Section 313(a), within sixty (60) days
after each March 31, beginning with March 31, 2003, the Indenture Trustee shall
mail to each Noteholder as required by TIA Section 313(c) a brief report dated
as of such date that complies with TIA Section 313(a). The Indenture Trustee
shall also comply with TIA Section 313(b).

                (b)    The Indenture Trustee shall file with the Commission and
each stock exchange, if any, on which the Notes are listed a copy of each report
mailed to Noteholders pursuant to this Indenture. The Issuer shall notify the
Indenture Trustee if and when the Notes are listed on any stock exchange.

                                  ARTICLE VIII
                      ACCOUNTS, DISBURSEMENTS AND RELEASES

                SECTION 8.1 Collection of Money. Except as otherwise expressly
provided herein, the Indenture Trustee may demand payment or delivery of, and
shall receive and collect, directly and without intervention or assistance of
any fiscal agent or other intermediary, all money and other property payable to
or receivable by the Indenture Trustee pursuant to this Indenture and the Sale
and Servicing Agreement. The Indenture Trustee shall apply all such money
received by it as provided in this Indenture and the Sale and Servicing
Agreement. Except as otherwise expressly provided in this Indenture, if any
default occurs in the making of any payment or performance under any agreement
or instrument that is part of the Trust Estate, the Indenture Trustee may take
such action as may be appropriate to enforce such payment or performance,
including the institution and prosecution of appropriate Proceedings. Any such
action shall be without prejudice to any right to claim a Default or Event of
Default under this Indenture and any right to proceed thereafter as provided in
Article V.

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<PAGE>

                SECTION 8.2 Trust Accounts.

                (a) On or before the Closing Date, the Issuer shall cause the
Servicer to establish and maintain, in the name of the Indenture Trustee, for
the benefit of the Insurer, the Noteholders and the Certificateholders, the
Collection Account as provided in Section 4.1(a) of the Sale and Servicing
Agreement. On or before each Distribution Date, the Servicer shall deposit in
the Collection Account all amounts required to be deposited therein with respect
to the preceding Collection Period as provided in Section 4.2 of the Sale and
Servicing Agreement.

                (b) On or before the Closing Date, the Issuer shall cause the
Servicer to establish and maintain, in the name of the Indenture Trustee, for
the benefit of the Insurer, the Noteholders and the Certificateholders, the
Reserve Account as provided in Section 4.7 of the Sale and Servicing Agreement.
On each Distribution Date, upon receipt of instructions from the Servicer
pursuant to Section 4.6(b) of the Sale and Servicing Agreement, the Indenture
Trustee shall withdraw from the Reserve Account (up to the amount on deposit in
the Reserve Account) and deposit in the Collection Account the amount, if any,
by which the Required Payment Amount for such Distribution Date exceeds the
Available Collections for such Distribution Date.

                (c) [RESERVED]

                (d) On each Distribution Date, the Indenture Trustee shall apply
or cause to be applied the amount on deposit in the Collection Account on such
Distribution Date in accordance with Section 2.8(a).

                (e) On or before the Closing Date, the Issuer shall cause the
Servicer to establish and maintain, in the name of the Indenture Trustee, for
the exclusive benefit of the Noteholders, the Note Payment Account as provided
in Section 4.1(b) of the Sale and Servicing Agreement. On each Distribution
Date, the Indenture Trustee shall apply or cause to be applied the amount on
deposit in the Note Payment Account on such Distribution Date in accordance with
Section 2.8(b) or (f), as applicable.

                SECTION 8.3 General Provisions Regarding Accounts.

                (a) So long as no Default or Event of Default shall have
occurred and be continuing, all or a portion of the funds in the Trust Accounts
shall be invested by the Indenture Trustee at the written direction of the
Servicer in Permitted Investments as provided in Sections 4.1 and 4.7 of the
Sale and Servicing Agreement. All income or other gain (net of losses and
investment expenses) from investments of monies deposited in the Trust Accounts
shall be withdrawn by the Indenture Trustee from such accounts and distributed
(but only under the circumstances set forth in the Sale and Servicing Agreement)
as provided in Sections 4.1 and 4.7 of the Sale and Servicing Agreement. The
Servicer shall not direct the Indenture 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 account 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 Indenture Trustee to make any such investment or sale, if requested by
the Indenture Trustee, the Issuer shall deliver to the Indenture Trustee an
Opinion of Counsel, acceptable to the Indenture Trustee, to such effect.

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<PAGE>

          (b) Subject to Section 6.1(c), the Indenture Trustee shall not in any
way be held liable by reason of any insufficiency in any of the Trust Accounts
resulting from any loss on any Permitted Investment included therein, except for
losses attributable to the Indenture Trustee's failure to make payments on such
Permitted Investments issued by the Indenture Trustee, in its commercial
capacity as principal obligor and not as trustee, in accordance with their
terms.

          (c) If (i) the Servicer shall have failed to give written investment
directions for any funds on deposit in the Trust Accounts to the Indenture
Trustee by 11:00 A.M. (New York City time) (or such other time as may be agreed
upon by the Issuer and Indenture Trustee), on the Business Day preceding each
Distribution Date, (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
immediately due and payable pursuant to Section 5.2 or (iii) the Notes shall
have been declared immediately due and payable following an Event of Default,
amounts collected or receivable from the Trust Estate are being applied in
accordance with Section 5.4 as if there had not been such a declaration, then
the Indenture Trustee shall, to the fullest extent practicable, invest and
reinvest funds in the Trust Accounts in one or more Permitted Investments.

          SECTION 8.4 Release of Trust Estate.

          (a) Subject to the payment of its fees and expenses pursuant to
Section 6.7, the Indenture Trustee may, and when required by the provisions of
this Indenture shall, execute instruments to release property from the lien of
this Indenture, or convey the Indenture Trustee's interest in the same, in a
manner and under circumstances that are not inconsistent with the provisions of
this Indenture. No party relying upon an instrument executed by the Indenture
Trustee as provided in this Article VIII shall be bound to ascertain the
Indenture Trustee's authority, inquire into the satisfaction of any conditions
precedent or see to the application of any monies.

          (b) The Indenture Trustee shall, at such time as there are no Notes
Outstanding, the Policy has been terminated in accordance with its terms and has
been returned to the Insurer for cancellation and all sums due the Indenture
Trustee and the Insurer pursuant to Section 6.7 have been paid in full, release
any remaining portion of the Trust Estate that secured the Notes from the lien
of this Indenture and release to the Issuer or any other Person entitled thereto
any funds then on deposit in the Trust Accounts. The Indenture Trustee shall
release property from the lien of this Indenture pursuant to this Section 8.4(b)
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 11.1.

          SECTION 8.5 Opinion of Counsel. The Indenture Trustee shall receive at
least seven (7) days notice when requested by the Issuer to take any action
pursuant to Section 8.4(a), accompanied by copies of any instruments involved,
and the Indenture Trustee shall also require, except in connection with any
action contemplated by Section 8.4(b), as a condition to such action, an Opinion
of Counsel, in form and substance satisfactory to the Indenture Trustee, stating
the legal effect of any such action, outlining the steps required to complete
such action, and concluding that all conditions precedent to the taking of such
action have been complied

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<PAGE>

with and such action will not materially and adversely impair the security for
the Notes or the rights of the Noteholders in contravention of the provisions of
this Indenture; provided, however, that such Opinion of Counsel shall not be
required to express an opinion as to the fair value of the Trust Estate. Counsel
rendering any such opinion may rely, without independent investigation, on the
accuracy and validity of any certificate or other instrument delivered to the
Indenture Trustee in connection with any such action.

                                   ARTICLE IX
                             SUPPLEMENTAL INDENTURES

          SECTION 9.1 Supplemental Indentures Without Consent of Noteholders.
The Issuer and the Indenture Trustee, when authorized by an Issuer Order, may,
without the consent of the Holders of any Notes but with the consent of the
Insurer (if no Insurer Default shall have occurred and be continuing), with
prior written notice to the Insurer and the Rating Agencies, at any time and
from time to time, enter into one or more indentures supplemental hereto, in
form satisfactory to the Indenture Trustee, for any of the following purposes:

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

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

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

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

                       (v)    to cure any ambiguity, to correct or supplement
     any provision herein or in any supplemental indenture that may be
     inconsistent with any other provision herein or in any supplemental
     indenture or in any offering document used in connection with the initial
     offer and sale of the Notes or the Certificates or to add any provisions to
     or change in any manner or eliminate any of the provisions of this
     Indenture which will not be inconsistent with other provisions of this
     Indenture;

                       (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;

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<PAGE>

provided, however, that (i) no such supplemental indenture may materially
adversely affect the interests of any Noteholder or Certificateholder, (ii) no
such supplemental indenture will be permitted unless an Opinion of Counsel is
delivered to the Indenture Trustee to the effect that such supplemental
indenture will not cause the Issuer to be characterized for federal income tax
purposes as an association taxable as a corporation or otherwise have any
material adverse impact on the federal income taxation of any Notes Outstanding
or outstanding Certificates or any Noteholder or Certificateholder and (iii) no
such supplemental indenture will be permitted without the consent of the Insurer
if such supplemental indenture would reasonably be expected to materially
adversely affect the interests of the Insurer. A supplemental indenture shall be
deemed not to materially adversely affect the interests of any Noteholder or
Certificateholder if (i) the Person requesting such supplemental indenture
obtains and delivers to the Indenture Trustee an Opinion of Counsel to that
effect or (ii) the Rating Agency Condition is satisfied. The Indenture Trustee
is hereby authorized to join in the execution of any such supplemental indenture
and to make any further appropriate agreements and stipulations that may be
therein contained.

          SECTION 9.2 Supplemental Indentures with Consent of Noteholders. The
Issuer and the Indenture Trustee, when authorized by an Issuer Order, may, with
the consent of the Holders of Notes evidencing not less than 51% of the Note
Balance and with the consent of the Insurer (if no Insurer Default shall have
occurred and be continuing), with prior notice to the Insurer and the Rating
Agencies, by Act of such Holders delivered to the Issuer and the Indenture
Trustee, at any time and from time to time, enter into one or more 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 modifying
in any manner the rights of the Holders of the Notes under this Indenture;
provided, however, that (i) no such supplemental indenture consented to by the
Insurer on behalf of the Noteholders pursuant to Section 11.19 may materially
adversely affect the interests of any Noteholder or Certificateholder, (ii) no
such supplemental indenture will be permitted unless an Opinion of Counsel is
delivered to the Indenture Trustee to the effect that such supplemental
indenture will not cause the Issuer to be characterized for federal income tax
purposes as an association taxable as a corporation or otherwise have any
material adverse impact on the federal income taxation of any Notes Outstanding
or outstanding Certificates or any Noteholder or Certificateholder and (iii) no
such supplemental indenture will be permitted without the consent of the Insurer
if such supplemental indenture would reasonably be expected to materially
adversely affect the interests of the Insurer; and, provided further, that no
such supplemental indenture may, without the consent of the Holder of each
Outstanding Note affected by such supplemental indenture:

                    (i)  change any Class Final Distribution Date or the date of
     payment of any installment of principal of or interest on any Note, or
     reduce the principal amount thereof, the Note Rate applicable thereto or
     the Redemption Price with respect thereto, change the provisions of this
     Indenture relating to the application of collections on, or the proceeds of
     the sale of, the Trust Estate to payment of principal of or interest on the
     Notes, or change any place of payment where, or the coin or currency in
     which, any Note or the interest thereon is payable;

                    (ii) impair the right to institute suit for the enforcement
     of the provisions of this Indenture requiring the application of available
     funds, as provided in

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<PAGE>

         Article V, to the payment of any 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);

                       (iii)   reduce the percentage of the Note Balance the
         consent of the Holders of which is required for any such supplemental
         indenture or for any waiver of compliance with the provisions of this
         Indenture or of defaults hereunder and their consequences as provided
         in this Indenture;

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

                       (v)     reduce the percentage of the Note Balance the
         consent of the Holders of which is required to direct the Indenture
         Trustee to sell or liquidate the Trust Estate pursuant to Section 5.4
         if the proceeds of such sale would be insufficient to pay in full the
         principal amount of and accrued but unpaid interest on the Notes;

                       (vi)    modify any of the provisions of this Indenture in
         such a manner as to affect the rights of the Holders of the Notes to
         the benefit of any provisions for the mandatory redemption of the
         Notes; or

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

                  It shall not be necessary for any Act of Noteholders under
this Section 9.2 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 Indenture Trustee of
any supplemental indenture pursuant to this Section 9.2, the Indenture Trustee
shall mail to the Holders of the Notes to which such amendment or supplemental
indenture relates a notice setting forth in general terms the substance of such
supplemental indenture. Any failure of the Indenture Trustee to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture.

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

                  SECTION 9.4 Effect of Supplemental Indenture. Upon the
execution of any supplemental indenture pursuant to the provisions hereof, this
Indenture shall be and shall be deemed to be modified and amended in accordance
therewith with respect to the Notes affected

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thereby, and the respective rights, limitations of rights, obligations, duties,
liabilities and immunities under this Indenture of the Indenture Trustee, the
Issuer and the Holders of the Notes shall thereafter be determined, exercised
and enforced hereunder subject in all respects to such modifications and
amendments, and all the terms and conditions of any such supplemental indenture
shall be and be deemed to be part of the terms and conditions of this Indenture
for any and all purposes.

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

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

                                    ARTICLE X
                               REDEMPTION OF NOTES

                  SECTION 10.1 Redemption.

                  (a) The Notes are subject to redemption in whole, but not in
part, at the direction of the Servicer, pursuant to Section 9.1(a) of the Sale
and Servicing Agreement, on any Distribution Date on which the Servicer
exercises its option to purchase the assets of the Issuer pursuant to such
Section 9.1(a), and the amount paid by the Servicer shall be treated as
collections in respect of the Receivables and applied to pay all amounts due to
the Servicer under the Sale and Servicing Agreement, the unpaid principal amount
of the Notes plus all accrued and unpaid interest (including any overdue
interest) thereon, the Certificate Balance plus all accrued and unpaid interest
(including any overdue interest) thereon and all amounts due to the Insurer
under the Transaction Documents or the Policy. If the Notes are to be redeemed
pursuant to this Section 10.1(a), the Issuer shall furnish or cause the Servicer
to furnish notice of such redemption to the Depositor, the Indenture Trustee,
the Insurer and the Rating Agencies not later than thirty (30) days prior to the
Redemption Date and the Issuer shall deposit the Redemption Price of the Notes
to be redeemed in the Note Payment Account by 10:00 A.M. (New York City time) on
the Redemption Date, whereupon all such Notes shall be due and payable on the
Redemption Date.

                  (b) In the event that the assets of the Issuer are purchased
by the Servicer pursuant to Section 9.1(a) of the Sale and Servicing Agreement,
all amounts on deposit in the Note Payment Account shall be paid to the
Noteholders up to the unpaid principal amount of the Notes and all accrued and
unpaid interest thereon. If such amounts are to be paid to Noteholders pursuant
to this Section 10.1(b), the Issuer shall, to the extent practicable, furnish or
cause the

                                       59

<PAGE>

Servicer to furnish notice of such event to the Depositor, the Indenture
Trustee, the Insurer and the Rating Agencies not later than twenty (20) days
prior to the Redemption Date, whereupon all such amounts shall be payable on the
Redemption Date.

          SECTION 10.2  Form of Redemption Notice. Notice of redemption of the
Notes under Section 10.1(a) shall be given by the Indenture Trustee by
first-class mail, postage prepaid, or by facsimile mailed or transmitted
promptly following receipt of notice from the Issuer or the Servicer pursuant to
Section 10.1(a), but not later than ten (10) days prior to the applicable
Redemption Date, to each Holder of the Notes as of the close of business on the
second Record Date preceding the applicable Redemption Date, at such Holder's
address or facsimile number appearing in the Note Register.

          All notices of redemption shall state:

               (i)      the Redemption Date;

               (ii)     the Redemption Price; and

               (iii)    the place where the 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 3.2).

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

          SECTION 10.3  Notes Payable on Redemption Date. The Notes to be
redeemed shall, following notice of redemption as required by Section 10.2 (in
the case of redemption pursuant to Section 10.1(a)), become due and payable on
the Redemption Date 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 11.1  Compliance Certificates and Opinions, etc.

          (a)  Upon any application or request by the Issuer to the Indenture
Trustee to take any action under any provision of this Indenture, the Issuer
shall furnish to the Indenture Trustee (i) an Officer's Certificate stating that
all conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with, (ii) an Opinion of Counsel stating
that, in the opinion of such counsel, all such conditions precedent, if any,
have been complied with and (iii) (if required by the TIA) an Independent
Certificate from a firm of certified public accountants meeting the applicable
requirements of this Section 11.1, except that, in the case of any such
application or request as to which the furnishing of such documents is

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specifically required by any provision of this Indenture, no additional
certificate or opinion need be furnished.

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

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

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

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

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

          (b)  Prior to the deposit of any Collateral or other property or
securities with the Indenture Trustee that is to be made the basis for the
release of any property or securities subject to the lien of this Indenture, the
Issuer shall, in addition to any obligation imposed in Section 11.1(a) or
elsewhere in this Indenture, deliver to the Indenture Trustee an Officer's
Certificate certifying or stating the opinion of each person signing such
certificate as to the fair value (within ninety (90) days of such deposit) to
the Issuer of the Collateral or other property or securities to be so deposited.

          (c)  Whenever the Issuer is required to furnish to the Indenture
Trustee an Officer's Certificate certifying or stating the opinion of any signer
thereof as to the matters described in Section 11.1(b), the Issuer shall also
furnish to the Indenture Trustee an Independent Certificate as to the same
matters if the fair value to the Issuer of the property or securities to be so
deposited and of all other such property or securities made the basis of any
such withdrawal or release since the commencement of the then-current fiscal
year of the Issuer, as set forth in the certificates furnished pursuant to
Section 11.1(b) and this Section 11.1(c), is 10% or more of the Note Balance,
but such a certificate need not be furnished with respect to any property or
securities so deposited if the fair value thereof to the Issuer as set forth in
the related Officer's Certificate is less than $25,000 or less than 1% of the
Note Balance.

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

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          (e)  Whenever the Issuer is required to furnish to the Indenture
Trustee an Officer's Certificate certifying or stating the opinion of any signer
thereof as to the matters described in Section 11.1(d), the Issuer shall also
furnish to the Indenture Trustee an Independent Certificate as to the same
matters if the fair value of the property or securities and of all other
property, other than property as contemplated by Section 11.1(f) or securities
released from the lien of this Indenture since the commencement of the
then-current calendar year, as set forth in the certificates required by Section
11.1(d) and this Section 11.1(e), is 10% or more of the Note Balance, but such a
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 1% of the Note Balance.

          (f)  Notwithstanding Section 2.10 or any other provisions of this
Section 11.1, the Issuer may, without compliance with the requirements of the
other provisions of this Section 11.1, (i) collect, liquidate, sell or otherwise
dispose of Receivables and Financed Vehicles as and to the extent permitted or
required by the Transaction Documents and (ii) make cash payments out of the
Trust Accounts as and to the extent permitted or required by the Transaction
Documents.

          SECTION 11.2  Form of Documents Delivered to Indenture Trustee.

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

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

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

          (d)  Whenever in this Indenture, in connection with any application or
certificate or report to the Indenture Trustee, it is provided that the Issuer
shall deliver any document as a condition of the granting of such application,
or as evidence of the Issuer's compliance with any term hereof, it is intended
that the truth and accuracy, at the time of the

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<PAGE>

granting of such application or at the effective date of such certificate or
report (as the case may be), of the facts and opinions stated in such document
shall in such case be conditions precedent to the right of the Issuer to have
such application granted or to the sufficiency of such certificate or report.
The foregoing shall not, however, be construed to affect the Indenture Trustee's
right to rely upon the truth and accuracy of any statement or opinion contained
in any such document as provided in Article VI.

          SECTION 11.3  Acts of Noteholders.

          (a)  Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by the
Noteholders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by the Noteholders in person or by agents
duly appointed in writing, and except as herein otherwise expressly provided
such action shall become effective when such instrument or instruments are
delivered to the Indenture Trustee and, where it is hereby expressly required,
to the Issuer. Such instrument or instruments (and the action embodied therein
and evidenced thereby) are herein sometimes referred to as the "Act" of the
Noteholders signing such instrument or instruments. Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Indenture and (subject to Section 6.1) conclusive in
favor of the Indenture Trustee and the Issuer, if made in the manner provided in
this Section 11.3.

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

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

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

          SECTION 11.4  Notices, etc., to Indenture Trustee, Issuer and Rating
Agencies. Any request, demand, authorization, direction, notice, instruction,
consent, waiver, Act of Noteholders or other document provided or permitted by
this Indenture shall be in writing and if such request, demand, authorization,
direction, notice, instruction, consent, waiver, Act of Noteholders or other
document is to be made upon, given or furnished to or filed with:

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

               (ii)     the Issuer by the Indenture Trustee or by any
     Noteholder, shall be sufficient for every purpose hereunder if in writing
     and mailed first-class, postage prepaid to the Issuer addressed to: CarMax
     Auto Owner Trust 2002-1, in care of The Bank of New York, 5 Penn Plaza,
     16th Floor, New York, New York 10001, Attention: Corporate Trust Division,
     Asset Backed Securities Group, with a copy to the Administrator at 4900 Cox
     Road, Glen Allen, Virginia 23060, Attention: Treasury Department, or at any
     other

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<PAGE>

     address previously furnished in writing to the Indenture Trustee by the
     Issuer or the Administrator;

               (iii)    the Depositor by the Indenture Trustee, the Servicer or
     any Noteholder, shall be sufficient for every purpose hereunder if in
     writing and mailed first-class, postage prepaid to the Depositor addressed
     to Pooled Auto Securities Shelf LLC, 301 South College Street, One Wachovia
     Center, TW-10, Charlotte, North Carolina 28288, Attention: General Counsel;
     or

               (iv)     the Insurer by the Indenture Trustee, the Servicer or
     any Noteholder, shall be sufficient for every purpose hereunder if in
     writing and mailed first-class, postage prepaid to the Insurer addressed to
     MBIA Insurance Corporation, 113 King Street, Armonk, New York 10504,
     Attention: Insured Portfolio Management, Structured Finance.

          Notices required to be given to the Rating Agencies by the Issuer, the
Indenture Trustee or the Owner Trustee shall be in writing, personally
delivered, telecopied 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 case of Standard & Poor's, at the following address: Standard & Poor's,
a division of The McGraw-Hill Companies, 55 Water Street (43rd Floor), New York,
New York 10041, Attention: Asset Backed Surveillance Department. The Issuer
shall promptly transmit any notice received by it from the Noteholders to the
Indenture Trustee.

          SECTION 11.5  Notices to Noteholders; Waiver.

          (a)  Where this Indenture provides for notice to Noteholders of any
event, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and mailed, first-class, postage prepaid to
each Noteholder affected by such event, at its 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.

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

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

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<PAGE>

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

          SECTION 11.6  Alternate Payment and Notice Provisions. Notwithstanding
any other provisions of this Indenture or any of the Notes to the contrary, the
Issuer may enter into any agreement with any Holder of a Note providing for a
method of payment, or notice by the Indenture Trustee or any Paying Agent to
such Holder, that is different from the methods provided for in this Indenture
for such payments or notices. The Issuer shall furnish to the Indenture Trustee
a copy of each such agreement and the Indenture Trustee shall cause payments to
be made and notices to be given in accordance with such agreements.

          SECTION 11.7  Conflict with Trust Indenture Act. 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 11.8  Effect of Headings and Table of Contents. The Article
and Section headings herein and the Table of Contents are for convenience of
reference only and shall not define or limit any of the terms or provisions
hereof.

          SECTION 11.9  Successors and Assigns. All covenants and agreements in
this Indenture and the Notes by the Issuer shall bind its successors and
assigns, whether so expressed or not. All agreements of the Indenture Trustee in
this Indenture shall bind its successors, co-trustees and agents.

          SECTION 11.10 Severability. If any provision of this Indenture or the
Notes shall be invalid, illegal or unenforceable, the validity, legality, and
enforceability of the remaining provisions of this Indenture and the Notes 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, the Insurer, the Noteholders, 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 Holiday. If the date on which any payment is due
shall not be a Business Day, then (notwithstanding any other provision of the
Notes or this Indenture) payment need not be made on such date but may be made
on the next succeeding Business Day with the same force and effect as if made on
the date on which nominally due, and no interest shall accrue for the period
from and after any such nominal date.

          SECTION 11.13 GOVERNING LAW. THIS INDENTURE SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK

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<PAGE>

AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES UNDER THIS INDENTURE
SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS WITHOUT GIVING EFFECT TO THE
CONFLICTS OF LAWS PROVISIONS THEREOF WHICH MAY REQUIRE THE APPLICATION OF THE
LAWS OF ANY OTHER JURISDICTION (OTHER THAN SECTION 5-1401 OF THE NEW YORK
GENERAL OBLIGATION LAW).

          SECTION 11.14 Counterparts. This Indenture may be executed in any
number of counterparts, each of which counterparts when so executed shall be
deemed to be an original, and all of which 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 office, such recording shall be
effected by the Issuer at its expense and shall be accompanied by an Opinion of
Counsel (which may be counsel to the Indenture Trustee or any other counsel
reasonably acceptable to the Indenture Trustee) to the effect that such
recording is necessary either for the protection of the Noteholders or any other
Person secured hereunder or for the enforcement of any right or remedy granted
to the Indenture Trustee under this Indenture.

          SECTION 11.16 Trust Obligation. No recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or
the Indenture Trustee on the Notes or under this Indenture or any certificate or
other writing delivered in connection herewith or therewith against (i) the
Indenture Trustee or the Owner Trustee in its individual capacity, (ii) any
holder of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director, employee or agent of the Indenture
Trustee or the Owner Trustee in its individual capacity, of any holder of a
beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or
of any successor or assign of the Indenture Trustee or the Owner Trustee in its
individual capacity, except as any such Person may have expressly agreed (it
being understood that the Indenture Trustee and the Owner Trustee have no such
obligations in their individual capacities), 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 Article VI, VII and VIII of the Trust Agreement.

          SECTION 11.17 No Petition. The Indenture Trustee, by entering into
this Indenture, and each Noteholder or Note Owner, by accepting a Note or
beneficial interest in a Note, as the case may be, hereby covenant and agree
that they will not at any time institute against the Depositor or the Issuer, or
join in any institution against the Depositor 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 other Transaction Documents.

          SECTION 11.18 Inspection. The Issuer shall, with reasonable prior
notice, permit any representative of the Indenture Trustee or the Insurer,
during the Issuer's normal

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<PAGE>

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

          SECTION 11.19 Certain Matters Regarding the Insurer. If no Insurer
Default shall have occurred and be continuing, the Insurer shall have the right
to exercise all rights, including voting rights, which the Noteholders or the
Certificateholders are entitled to exercise pursuant to this Indenture, without
any consent of such Noteholders or Certificateholders, and the Noteholders and
the Certificateholders may only exercise such voting rights with the prior
written consent of the Insurer; provided, however, that, without the consent of
each Noteholder and Certificateholder affected thereby, the Insurer shall not
exercise such rights to amend this Indenture in any manner that requires the
consent of the Holder of each Outstanding Note adversely affected by such
amendment.

          Notwithstanding any other provisions of this Indenture to the
contrary, if an Insurer Default shall have occurred and be continuing, the
Insurer shall not have the right to take any action under this Indenture or to
control or direct the actions of the Issuer, the Depositor, the Indenture
Trustee or the Owner Trustee pursuant to the terms of this Indenture, nor shall
the consent of the Insurer be required with respect to any action (or waiver of
a right to take action) to be taken by the Issuer, the Depositor, the Indenture
Trustee, the Owner Trustee, the Noteholders or the Certificateholders.

          SECTION 11.20 Third-Party Beneficiaries. This Indenture shall inure to
the benefit of and be binding upon the parties hereto, the Owner Trustee, the
Noteholders, the Certificateholders, the Insurer and their respective successors
and permitted assigns. Except as otherwise provided in this Article XI, no other
Person shall have any right or obligation hereunder.

                            [SIGNATURE PAGE FOLLOWS]

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

                                   CARMAX AUTO OWNER TRUST 2002-1

                                   By:  THE BANK OF NEW YORK,
                                        not in its individual capacity but
                                        solely as Owner Trustee

                                   By:  /s/ Helen Lam
                                      ---------------------------------
                                        Name:  Helen Lam
                                        Title:  Assistant Treasurer

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

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

                                       S-1

<PAGE>

                                   Exhibit A-1

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

          THE PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH IN THE INDENTURE
(AS DEFINED BELOW). THE OUTSTANDING PRINCIPAL BALANCE OF THIS NOTE AT ANY TIME
MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

REGISTERED                                                          $110,000,000

NO. A-1                                                      CUSIP NO. 143128AR7

                         CARMAX AUTO OWNER TRUST 2002-1

                        1.89% CLASS A-1 ASSET-BACKED NOTE

          CarMax Auto Owner Trust 2002-1, a statutory business trust organized
and existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to Cede & Co., or its
registered assigns, the principal sum of ONE HUNDRED TEN MILLION DOLLARS payable
on each Distribution Date in an amount equal to the aggregate amount, if any,
payable from the Note Payment Account in respect of principal on the Class A-1
Notes pursuant to Section 2.8 of the Indenture dated as of June 1, 2002 (as
amended, supplemented or otherwise modified and in effect from time to time, the
"Indenture") between the Issuer and Wells Fargo Bank Minnesota, National
Association, a national banking association, as Indenture Trustee (in such
capacity, the "Indenture Trustee"); provided, however, that, if not paid prior
to such date, the unpaid principal amount of this Class A-1 Note shall be due
and payable on the earlier of the June 2003 Distribution Date (the "Class A-1
Final Distribution Date") and the Redemption Date, if any, pursuant to Section
10.1 of the Indenture. Capitalized terms used but not defined herein are defined
in Article I of the Indenture, which also contains rules as to construction that
shall be applicable hereto.

          The Issuer shall pay interest on this Class A-1 Note at the rate per
annum shown above on each Distribution Date, until the principal of this Class
A-1 Note is paid or made available for payment, on the principal amount of this
Class A-1 Note outstanding on the preceding Distribution Date (after giving
effect to all payments of principal made on such preceding Distribution Date),
subject to certain limitations contained in Section 3.1 of the Indenture.
Interest on this Class A-1 Note shall accrue for each Distribution Date from and

                                      A1-1

<PAGE>

including the preceding Distribution Date (or, in the case of the initial
Distribution Date or if no interest has been paid, from and including the
Closing Date) to but excluding such Distribution Date. Interest shall be
computed on the basis of actual days elapsed and a 360-day year. The principal
of and interest on this Class A-1 Note shall be paid in the manner specified on
the reverse hereof.

          "Distribution Date" means the 15th day of each month or, if such 15th
day is not a Business Day, the following Business Day, commencing on July 15,
2002.

          The principal of and interest on this Class A-1 Note are payable in
such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts. All payments made by
the Issuer with respect to this Class A-1 Note shall be applied first to
interest due and payable on this Class A-1 Note as provided above and then to
the unpaid principal of this Class A-1 Note.

          Reference is hereby made to the further provisions of this Class A-1
Note set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if fully set forth on the face of this Class
A-1 Note.

          Unless the certificate of authentication hereon has been executed by
an authorized officer of the Indenture Trustee, by manual or facsimile
signature, this Class A-1 Note shall not entitle the Holder hereof to any
benefit under the Indenture or be valid for any purpose.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      A1-2

<PAGE>

          IN WITNESS WHEREOF, the Issuer has caused this Class A-1 Note to be
duly executed as of the date set forth below.

Dated: June 26, 2002

                                     CARMAX AUTO OWNER TRUST 2002-1

                                     By:  THE BANK OF NEW YORK,
                                          not in its individual capacity but
                                          solely as Owner Trustee

                                     By: ______________________________________
                                         Name:
                                         Title:

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

          This is one of the Class A-1 Notes designated above and referred to in
the within-mentioned Indenture.

Dated: June 26, 2002

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

                                     By: ______________________________________
                                         Name:
                                         Title:

                                      A1-3

<PAGE>

                           [REVERSE OF CLASS A-1 NOTE]

          This Class A-1 Note is one of a duly authorized issue of Notes of the
Issuer, designated as its 1.89% Class A-1 Asset-Backed Notes, which, together
with the 2.64% Class A-2 Asset-Backed Notes, the 3.59% Class A-3 Asset-Backed
Notes and the 4.23% Class A-4 Asset-Backed Notes (collectively, the "Notes"),
are issued under the Indenture, to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights and obligations thereunder of the Issuer, the Indenture Trustee and the
Holders of the Notes. The Notes are subject to all terms of the Indenture.

          The Class A-1 Notes are and shall be equally and ratably secured by
the collateral pledged as security therefor as provided in the Indenture.

          As described above, the entire unpaid principal amount of this Class
A-1 Note shall be due and payable on the earlier of the Class A-1 Final
Distribution Date and the Redemption Date, if any, pursuant to Section 10.1 of
the Indenture. Notwithstanding the foregoing, the entire unpaid principal amount
of the Notes shall be due and payable on the date on which an Event of Default
shall have occurred and be continuing if (i) the Insurer (if an Insurer Default
shall not have occurred and be continuing) or (ii) the Indenture Trustee or the
Holders of Notes evidencing not less than 66 2/3% of the Note Balance (if an
Insurer Default shall have occurred and be continuing) have declared the Notes
to be immediately due and payable in the manner provided in Section 5.2 of the
Indenture. All principal payments on the Class A-1 Notes shall be made pro rata
to the Holders entitled thereto if the Notes have been declared immediately due
and payable.

          Payments of interest on this Class A-1 Note due and payable on any
Distribution Date, together with the installment of principal, if any, due and
payable on such Distribution Date, to the extent not in full payment of this
Class A-1 Note, shall be made by check mailed to the Person whose name appears
as the Holder of this Class A-1 Note (or one or more Predecessor Notes) on the
Note Register as of the close of business on the Record Date preceding such
Distribution Date, except that with respect to Class A-1 Notes registered on the
Record Date in the name of the nominee of the Clearing Agency (initially, such
nominee to be Cede & Co.), payments will be made by wire transfer in immediately
available funds to the account designated by such nominee. Such checks shall be
mailed to the Person entitled thereto at the address of such Person as it
appears on the Note Register as of such Record Date without requiring that this
Class A-1 Note be submitted for notation of payment. Any reduction in the
principal amount of this Class A-1 Note (or any one or more Predecessor Notes)
effected by any payments made on any Distribution Date shall be binding upon all
future Holders of this Class A-1 Note and of any Class A-1 Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof, whether
or not noted hereon. If funds are expected to be available, as provided in the
Indenture, for payment in full of the then remaining unpaid principal amount of
this Class A-1 Note on a Distribution Date, then the Indenture Trustee, in the
name of and on behalf of the Issuer, shall notify the Person who was the Holder
hereof as of the Record Date preceding such Distribution Date by notice mailed
or transmitted by facsimile prior to such Distribution Date, and the amount then
due and payable shall be payable only upon presentation and surrender of this
Class A-1 Note at the Indenture Trustee's Corporate Trust Office or at the

                                      A1-4

<PAGE>

office of the Indenture Trustee's agent appointed for such purposes located in
New York, New York.

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

          As provided in the Indenture, the Notes may be redeemed, in whole but
not in part, in the manner and to the extent described in the Indenture and the
Sale and Servicing Agreement.

          As provided in the Indenture, and subject to certain limitations set
forth therein, the transfer of this Class A-1 Note may be registered on the Note
Register upon surrender of this Class A-1 Note for registration of transfer at
the office or agency designated by the Issuer pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or
such Holder's attorney duly authorized in writing, with such signature
guaranteed by an "eligible guarantor institution" meeting the requirements of
the Note Registrar, and thereupon one or more new Class A-1 Notes in any
authorized denomination and in the same aggregate principal amount will be
issued to the designated transferee or transferees. No service charge will be
charged for any registration of transfer or exchange of this Class A-1 Note, but
the transferor may be required to pay a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such registration
of transfer or exchange.

          Each Noteholder or Note Owner, by its acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note, covenants and agrees that
no recourse may be taken, directly or indirectly, with respect to the
obligations of the Issuer or the Indenture Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith
against (i) the Indenture Trustee or the Owner Trustee, each in its individual
capacity, (ii) any holder of a beneficial interest in the Issuer or (iii) any
partner, owner, beneficiary, agent, officer, director or employee of the
Indenture Trustee or the Owner Trustee, each in its individual capacity, or any
holder of a beneficial interest in the Issuer, the Owner Trustee or the
Indenture Trustee or any successor or assign of the Indenture Trustee or the
Owner Trustee, each in its individual capacity, except as any such Person may
have expressly agreed and except that any such partner, owner or beneficiary
shall be fully liable, to the extent provided by applicable law, for any unpaid
consideration for stock, unpaid capital contribution for stock, unpaid capital
contribution or failure to pay any installment or call owing to such entity.

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

          The Issuer has entered into the Indenture and this Class A-1 Note is
issued with the intention that, for federal, state and local income, and
franchise tax purposes, the Notes will

                                      A1-5

<PAGE>

qualify as indebtedness of the Issuer secured by the Trust Estate. Each
Noteholder or Note Owner, by its acceptance of a Note or, in the case of a Note
Owner, a beneficial interest in a Note, agrees to treat the Notes for federal,
state and local income, single business and franchise tax purposes as
indebtedness of the Issuer.

          Prior to the due presentment for registration of transfer of this
Class A-1 Note, the Issuer, the Indenture Trustee and any agent of the Issuer or
the Indenture Trustee may treat the Person in whose name this Class A-1 Note (as
of the day of determination or as of such other date as may be specified in the
Indenture) is registered as the owner hereof for all purposes, whether or not
this Class A-1 Note shall be overdue, and none of the Issuer, the Indenture
Trustee or any such agent shall be affected by notice to the contrary.

          The Indenture permits the Owner Trustee, on behalf of the Issuer, and
the Indenture Trustee, with certain exceptions therein provided, to amend or
waive from time to time certain terms and conditions set forth in the Indenture
without the consent of the Holders of the Notes but with the consent of the
Insurer (if an Insurer Default shall not have occurred and be continuing). The
Indenture also permits the Owner Trustee, on behalf of the Issuer, and the
Indenture Trustee, with certain exceptions as therein provided, to amend or
waive from time to time certain terms and conditions set forth in the Indenture
with the consent of the Insurer (if an Insurer Default shall not have occurred
and be continuing) and the Holders of Notes evidencing not less than 51% of the
Note Balance. The Indenture also permits the Insurer (if an Insurer Default
shall not have occurred and be continuing) or the Holders of Notes evidencing
not less than 51% of the Note Balance, with the consent of the Insurer (if an
Insurer Default shall not have occurred and be continuing), on behalf of the
Holders of all the Notes, to waive compliance by the Issuer with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Insurer, the Holders of
51% of the Note Balance, or the Holder of this Class A-1 Note (or any one or
more Predecessor Notes) shall be conclusive and binding on such Holder and on
all future Holders of this Class A-1 Note and of any Class A-1 Note issued upon
the registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Class A-1
Note.

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

          The Indenture permits the Issuer, under certain circumstances, to
consolidate or merge with or into another Person, subject to the rights of the
Indenture Trustee and the Holders of Notes under the Indenture.

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

          This Class A-1 Note and the Indenture shall be governed by, and
construed in accordance with, the laws of the State of New York, and the
obligations, rights and remedies of the parties hereunder and thereunder shall
be determined in accordance with such laws.

                                      A1-6

<PAGE>

                  No reference herein to the Indenture, and no provision of this
Note or of the Indenture, shall alter or impair the obligation of the Issuer,
which is absolute and unconditional, to pay the principal of and interest on
this Class A-1 Note at the times, place and rate, and in the coin or currency,
herein prescribed.

                  Anything herein to the contrary notwithstanding, except as
expressly provided in the Transaction Documents, none of Wells Fargo Bank
Minnesota, National Association, in its individual capacity, The Bank of New
York, in its individual capacity, any holder of a beneficial interest in the
Issuer, or any of their respective partners, beneficiaries, agents, officers,
directors, employees or successors or assigns shall be personally liable for,
nor shall recourse be had to any of them for, the payment of principal of or
interest on this Class A-1 Note or the performance of, or omission to perform,
any of the covenants, obligations or indemnifications contained in the
Indenture. The Holder of this Note, by its acceptance hereof, agrees that,
except as expressly provided in the Transaction Documents, in the case of an
Event of Default under the Indenture, the Holder shall have no claim against any
of the foregoing for any deficiency, loss or claim resulting therefrom;
provided, however, that nothing contained herein shall be taken to prevent
recourse to, or enforcement against, the assets of the Issuer for any and all
liabilities, obligations and undertakings contained in the Indenture or in this
Class A-1 Note.

                                      A1-7

<PAGE>

                                   ASSIGNMENT

SOCIAL SECURITY NUMBER
OR OTHER IDENTIFICATION
NUMBER OF ASSIGNEE: ________________

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

_______________________________________________________________________________

                         (name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints ________________________, attorney, to transfer said Note on the
Note Register, with full power of substitution in the premises.

Dated:

                                      ________________________________________*/

                                      Signature Guaranteed:

                                      ________________________________________*/

*/       NOTICE: The signature to this assignment must correspond with the name
         of the registered owner as it appears on the face of the within Note in
         every particular, without alteration, enlargement or any change
         whatsoever. Such signature must be guaranteed by an "eligible guarantor
         institution" meeting the requirements of the Note Registrar.

                                      A1-8

<PAGE>

                                   Exhibit A-2

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

                  THE PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH IN THE
INDENTURE (AS DEFINED BELOW). THE OUTSTANDING PRINCIPAL BALANCE OF THIS NOTE AT
ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

REGISTERED                                                          $126,000,000

NO. A-2                                                      CUSIP NO. 143128AS5

                         CARMAX AUTO OWNER TRUST 2002-1

                        2.64% CLASS A-2 ASSET-BACKED NOTE

                  CarMax Auto Owner Trust 2002-1, a statutory business trust
organized and existing under the laws of the State of Delaware (herein referred
to as the "Issuer"), for value received, hereby promises to pay to Cede & Co.,
or its registered assigns, the principal sum of ONE HUNDRED TWENTY-SIX MILLION
DOLLARS payable on each Distribution Date in an amount equal to the aggregate
amount, if any, payable from the Note Payment Account in respect of principal on
the Class A-2 Notes pursuant to Section 2.8 of the Indenture dated as of June 1,
2002 (as amended, supplemented or otherwise modified and in effect from time to
time, the "Indenture") between the Issuer and Wells Fargo Bank Minnesota,
National Association, a national banking association, as Indenture Trustee (in
such capacity, the "Indenture Trustee"); provided, however, that, except under
certain limited circumstances described in the Indenture, principal of this
Class A-2 Note will not be due and payable until the Class A-1 Notes have been
paid in full; and, provided further, that, if not paid prior to such date, the
unpaid principal amount of this Class A-2 Note shall be due and payable on the
earlier of the February 2005 Distribution Date (the "Class A-2 Final
Distribution Date") and the Redemption Date, if any, pursuant to Section 10.1 of
the Indenture. Capitalized terms used but not defined herein are defined in
Article I of the Indenture, which also contains rules as to construction that
shall be applicable hereto.

                  The Issuer shall pay interest on this Class A-2 Note at the
rate per annum shown above on each Distribution Date, until the principal of
this Class A-2 Note is paid or made available for payment, on the principal
amount of this Class A-2 Note outstanding on the

                                      A2-1

<PAGE>

preceding Distribution Date (after giving effect to all payments of principal
made on such preceding Distribution Date), subject to certain limitations
contained in Section 3.1 of the Indenture. Interest on this Class A-2 Note shall
accrue for each Distribution Date from and including the 15th day of the
preceding month (or, in the case of the initial Distribution Date or if no
interest has been paid, from and including the Closing Date) to but excluding
the 15th day of the month in which such Distribution Date occurs. Interest shall
be computed on the basis of a 360-day year consisting of twelve 30-day months.
Interest on this Class A-2 Note on each Distribution Date shall equal
one-twelfth of the product of (i) the rate per annum shown above and (ii) the
principal amount of this Class A-2 Note outstanding on the preceding
Distribution Date (after giving effect to all payments of principal made on such
preceding Distribution Date); provided, however, that the interest payable on
this Class A-2 Note on July 15, 2002 shall equal $175,560.00. The principal of
and interest on this Class A-2 Note shall be paid in the manner specified on the
reverse hereof.

                  "Distribution Date" means the 15th day of each month or, if
such 15th day is not a Business Day, the following Business Day, commencing on
July 15, 2002.

                  The principal of and interest on this Class A-2 Note are
payable in such coin or currency of the United States of America as at the time
of payment is legal tender for payment of public and private debts. All payments
made by the Issuer with respect to this Class A-2 Note shall be applied first to
interest due and payable on this Class A-2 Note as provided above and then to
the unpaid principal of this Class A-2 Note.

                  Reference is hereby made to the further provisions of this
Class A-2 Note set forth on the reverse hereof, which further provisions shall
for all purposes have the same effect as if fully set forth on the face of this
Class A-2 Note.

                  Unless the certificate of authentication hereon has been
executed by an authorized officer of the Indenture Trustee, by manual or
facsimile signature, this Class A-2 Note shall not entitle the Holder hereof to
any benefit under the Indenture or be valid for any purpose.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      A2-2

<PAGE>

                  IN WITNESS WHEREOF, the Issuer has caused this Class A-2 Note
to be duly executed as of the date set forth below.

Dated:  June 26, 2002

                                                CARMAX AUTO OWNER TRUST 2002-1

                                                By:  THE BANK OF NEW YORK,
                                                     not in its individual
                                                     capacity butsolely as Owner
                                                     Trustee

                                                By: ____________________________
                                                    Name:
                                                    Title:

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

                  This is one of the Class A-2 Notes designated above and
referred to in the within-mentioned Indenture.

Dated: June 26, 2002

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

                                                By: ____________________________
                                                    Name:
                                                    Title:

                                      A2-3

<PAGE>

                           [REVERSE OF CLASS A-2 NOTE]

         This Class A-2 Note is one of a duly authorized issue of Notes of the
Issuer, designated as its 2.64% Class A-2 Asset-Backed Notes, which, together
with the 1.89% Class A-1 Asset-Backed Notes, the 3.59% Class A-3 Asset-Backed
Notes and the 4.23% Class A-4 Asset-Backed Notes (collectively, the "Notes"),
are issued under the Indenture, to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights and obligations thereunder of the Issuer, the Indenture Trustee and the
Holders of the Notes. The Notes are subject to all terms of the Indenture.

         The Class A-2 Notes are and shall be equally and ratably secured by the
collateral pledged as security therefor as provided in the Indenture.

         As described above, the entire unpaid principal amount of this Class
A-2 Note shall be due and payable on the earlier of the Class A-2 Final
Distribution Date and the Redemption Date, if any, pursuant to Section 10.1 of
the Indenture. Notwithstanding the foregoing, the entire unpaid principal amount
of the Notes shall be due and payable on the date on which an Event of Default
shall have occurred and be continuing if (i) the Insurer (if an Insurer Default
shall not have occurred and be continuing) or (ii) the Indenture Trustee or the
Holders of Notes evidencing not less than 66 2/3% of the Note Balance (if an
Insurer Default shall have occurred and be continuing) have declared the Notes
to be immediately due and payable in the manner provided in Section 5.2 of the
Indenture. All principal payments on the Class A-2 Notes shall be made pro rata
to the Holders entitled thereto if the Notes have been declared immediately due
and payable.

         Payments of interest on this Class A-2 Note due and payable on any
Distribution Date, together with the installment of principal, if any, due and
payable on such Distribution Date, to the extent not in full payment of this
Class A-2 Note, shall be made by check mailed to the Person whose name appears
as the Holder of this Class A-2 Note (or one or more Predecessor Notes) on the
Note Register as of the close of business on the Record Date preceding such
Distribution Date, except that with respect to Class A-2 Notes registered on the
Record Date in the name of the nominee of the Clearing Agency (initially, such
nominee to be Cede & Co.), payments will be made by wire transfer in immediately
available funds to the account designated by such nominee. Such checks shall be
mailed to the Person entitled thereto at the address of such Person as it
appears on the Note Register as of such Record Date without requiring that this
Class A-2 Note be submitted for notation of payment. Any reduction in the
principal amount of this Class A-2 Note (or any one or more Predecessor Notes)
effected by any payments made on any Distribution Date shall be binding upon all
future Holders of this Class A-2 Note and of any Class A-2 Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof, whether
or not noted hereon. If funds are expected to be available, as provided in the
Indenture, for payment in full of the then remaining unpaid principal amount of
this Class A-2 Note on a Distribution Date, then the Indenture Trustee, in the
name of and on behalf of the Issuer, shall notify the Person who was the Holder
hereof as of the Record Date preceding such Distribution Date by notice mailed
or transmitted by facsimile prior to such Distribution Date, and the amount then
due and payable shall be payable only upon presentation and surrender of this
Class A-2 Note at the Indenture Trustee's Corporate Trust Office or at the

                                      A2-4

<PAGE>

office of the Indenture Trustee's agent appointed for such purposes located in
New York, New York.

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

         As provided in the Indenture, the Notes may be redeemed, in whole but
not in part, in the manner and to the extent described in the Indenture and the
Sale and Servicing Agreement.

         As provided in the Indenture, and subject to certain limitations set
forth therein, the transfer of this Class A-2 Note may be registered on the Note
Register upon surrender of this Class A-2 Note for registration of transfer at
the office or agency designated by the Issuer pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or
such Holder's attorney duly authorized in writing, with such signature
guaranteed by an "eligible guarantor institution" meeting the requirements of
the Note Registrar, and thereupon one or more new Class A-2 Notes in any
authorized denomination and in the same aggregate principal amount will be
issued to the designated transferee or transferees. No service charge will be
charged for any registration of transfer or exchange of this Class A-2 Note, but
the transferor may be required to pay a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such registration
of transfer or exchange.

         Each Noteholder or Note Owner, by its acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note, covenants and agrees that
no recourse may be taken, directly or indirectly, with respect to the
obligations of the Issuer or the Indenture Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith
against (i) the Indenture Trustee or the Owner Trustee, each in its individual
capacity, (ii) any holder of a beneficial interest in the Issuer or (iii) any
partner, owner, beneficiary, agent, officer, director or employee of the
Indenture Trustee or the Owner Trustee, each in its individual capacity, or any
holder of a beneficial interest in the Issuer, the Owner Trustee or the
Indenture Trustee or any successor or assign of the Indenture Trustee or the
Owner Trustee, each in its individual capacity, except as any such Person may
have expressly agreed and except that any such partner, owner or beneficiary
shall be fully liable, to the extent provided by applicable law, for any unpaid
consideration for stock, unpaid capital contribution for stock, unpaid capital
contribution or failure to pay any installment or call owing to such entity.

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

         The Issuer has entered into the Indenture and this Class A-2 Note is
issued with the intention that, for federal, state and local income, and
franchise tax purposes, the Notes will

                                      A2-5

<PAGE>

qualify as indebtedness of the Issuer secured by the Trust Estate. Each
Noteholder or Note Owner, by its acceptance of a Note or, in the case of a Note
Owner, a beneficial interest in a Note, agrees to treat the Notes for federal,
state and local income, single business and franchise tax purposes as
indebtedness of the Issuer.

         Prior to the due presentment for registration of transfer of this Class
A-2 Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the
Indenture Trustee may treat the Person in whose name this Class A-2 Note (as of
the day of determination or as of such other date as may be specified in the
Indenture) is registered as the owner hereof for all purposes, whether or not
this Class A-2 Note shall be overdue, and none of the Issuer, the Indenture
Trustee or any such agent shall be affected by notice to the contrary.

         The Indenture permits the Owner Trustee, on behalf of the Issuer, and
the Indenture Trustee, with certain exceptions therein provided, to amend or
waive from time to time certain terms and conditions set forth in the Indenture
without the consent of the Holders of the Notes but with the consent of the
Insurer (if an Insurer Default shall not have occurred and be continuing). The
Indenture also permits the Owner Trustee, on behalf of the Issuer, and the
Indenture Trustee, with certain exceptions as therein provided, to amend or
waive from time to time certain terms and conditions set forth in the Indenture
with the consent of the Insurer (if an Insurer Default shall not have occurred
and be continuing) and the Holders of Notes evidencing not less than 51% of the
Note Balance. The Indenture also permits the Insurer (if an Insurer Default
shall not have occurred and be continuing) or the Holders of Notes evidencing
not less than 51% of the Note Balance, with the consent of the Insurer (if an
Insurer Default shall not have occurred and be continuing), on behalf of the
Holders of all the Notes, to waive compliance by the Issuer with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Insurer, the Holders of
51% of the Note Balance, or the Holder of this Class A-2 Note (or any one or
more Predecessor Notes) shall be conclusive and binding on such Holder and on
all future Holders of this Class A-2 Note and of any Class A-2 Note issued upon
the registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Class A-2
Note.

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

         The Indenture permits the Issuer, under certain circumstances, to
consolidate or merge with or into another Person, subject to the rights of the
Indenture Trustee and the Holders of Notes under the Indenture.

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

         This Class A-2 Note and the Indenture shall be governed by, and
construed in accordance with, the laws of the State of New York, and the
obligations, rights and remedies of the parties hereunder and thereunder shall
be determined in accordance with such laws.

                                      A2-6

<PAGE>

         No reference herein to the Indenture, and no provision of this Note or
of the Indenture, shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Class
A-2 Note at the times, place and rate, and in the coin or currency, herein
prescribed.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Transaction Documents, none of Wells Fargo Bank Minnesota,
National Association, in its individual capacity, The Bank of New York, in its
individual capacity, any holder of a beneficial interest in the Issuer, or any
of their respective partners, beneficiaries, agents, officers, directors,
employees or successors or assigns shall be personally liable for, nor shall
recourse be had to any of them for, the payment of principal of or interest on
this Class A-2 Note or the performance of, or omission to perform, any of the
covenants, obligations or indemnifications contained in the Indenture. The
Holder of this Note, by its acceptance hereof, agrees that, except as expressly
provided in the Transaction Documents, in the case of an Event of Default under
the Indenture, the Holder shall have no claim against any of the foregoing for
any deficiency, loss or claim resulting therefrom; provided, however, that
nothing contained herein shall be taken to prevent recourse to, or enforcement
against, the assets of the Issuer for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Class A-2 Note.

                                      A2-7

<PAGE>

                                   ASSIGNMENT

SOCIAL SECURITY NUMBER
OR OTHER IDENTIFICATION
NUMBER OF ASSIGNEE: ________________

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

________________________________________________________________________________

                         (name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints ________________________, attorney, to transfer said Note on the
Note Register, with full power of substitution in the premises.

Dated:

                                      ________________________________________*/

                                      Signature Guaranteed:

                                      ________________________________________*/

*/       NOTICE: The signature to this assignment must correspond with the name
         of the registered owner as it appears on the face of the within Note in
         every particular, without alteration, enlargement or any change
         whatsoever. Such signature must be guaranteed by an "eligible guarantor
         institution" meeting the requirements of the Note Registrar.

                                      A2-8

<PAGE>

                                   Exhibit A-3

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

          THE PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH IN THE INDENTURE
(AS DEFINED BELOW). THE OUTSTANDING PRINCIPAL BALANCE OF THIS NOTE AT ANY TIME
MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

REGISTERED                                                          $159,000,000

NO. A-3                                                      CUSIP NO. 143128AT3

                         CARMAX AUTO OWNER TRUST 2002-1

                        3.59% CLASS A-3 ASSET-BACKED NOTE

          CarMax Auto Owner Trust 2002-1, a statutory business trust organized
and existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to Cede & Co., or its
registered assigns, the principal sum of ONE HUNDRED FIFTY-NINE MILLION DOLLARS
payable on each Distribution Date in an amount equal to the aggregate amount, if
any, payable from the Note Payment Account in respect of principal on the Class
A-3 Notes pursuant to Section 2.8 of the Indenture dated as of June 1, 2002 (as
amended, supplemented or otherwise modified and in effect from time to time, the
"Indenture") between the Issuer and Wells Fargo Bank Minnesota, National
Association, a national banking association, as Indenture Trustee (in such
capacity, the "Indenture Trustee"); provided, however, that, except under
certain limited circumstances described in the Indenture, principal of this
Class A-3 Note will not be due and payable until the Class A-1 Notes and the
Class A-2 Notes have been paid in full; and, provided further, that, if not paid
prior to such date, the unpaid principal amount of this Class A-3 Note shall be
due and payable on the earlier of the June 2006 Distribution Date (the "Class
A-3 Final Distribution Date") and the Redemption Date, if any, pursuant to
Section 10.1 of the Indenture. Capitalized terms used but not defined herein are
defined in Article I of the Indenture, which also contains rules as to
construction that shall be applicable hereto.

          The Issuer shall pay interest on this Class A-3 Note at the rate per
annum shown above on each Distribution Date, until the principal of this Class
A-3 Note is paid or made available for payment, on the principal amount of this
Class A-3 Note outstanding on the

                                      A3-1

<PAGE>

preceding Distribution Date (after giving effect to all payments of principal
made on such preceding Distribution Date), subject to certain limitations
contained in Section 3.1 of the Indenture. Interest on this Class A-3 Note shall
accrue for each Distribution Date from and including the 15th day of the
preceding month (or, in the case of the initial Distribution Date or if no
interest has been paid, from and including the Closing Date) to but excluding
the 15th day of the month in which such Distribution Date occurs. Interest shall
be computed on the basis of a 360-day year consisting of twelve 30-day months.
Interest on this Class A-3 Note on each Distribution Date shall equal
one-twelfth of the product of (i) the rate per annum shown above and (ii) the
principal amount of this Class A-3 Note outstanding on the preceding
Distribution Date (after giving effect to all payments of principal made on such
preceding Distribution Date); provided, however, that the interest payable on
this Class A-3 Note on July 15, 2002 shall equal $301,260.83. The principal of
and interest on this Class A-3 Note shall be paid in the manner specified on the
reverse hereof.

          "Distribution Date" means the 15th day of each month or, if such 15th
day is not a Business Day, the following Business Day, commencing on July 15,
2002.

          The principal of and interest on this Class A-3 Note are payable in
such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts. All payments made by
the Issuer with respect to this Class A-3 Note shall be applied first to
interest due and payable on this Class A-3 Note as provided above and then to
the unpaid principal of this Class A-3 Note.

          Reference is hereby made to the further provisions of this Class A-3
Note set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if fully set forth on the face of this Class
A-3 Note.

          Unless the certificate of authentication hereon has been executed by
an authorized officer of the Indenture Trustee, by manual or facsimile
signature, this Class A-3 Note shall not entitle the Holder hereof to any
benefit under the Indenture or be valid for any purpose.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      A3-2

<PAGE>

          IN WITNESS WHEREOF, the Issuer has caused this Class A-3 Note to be
duly executed as of the date set forth below.

Dated: June 26, 2002

                                      CARMAX AUTO OWNER TRUST 2002-1

                                      By:  THE BANK OF NEW YORK,
                                           not in its individual capacity but
                                           solely as Owner Trustee

                                      By: ______________________________________
                                          Name:
                                          Title:

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

          This is one of the Class A-3 Notes designated above and referred to in
the within-mentioned Indenture.

Dated: June 26, 2002

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

                                      By: ______________________________________
                                          Name:
                                          Title:

                                      A3-3

<PAGE>

                           [REVERSE OF CLASS A-3 NOTE]

          This Class A-3 Note is one of a duly authorized issue of Notes of the
Issuer, designated as its 3.59% Class A-3 Asset-Backed Notes, which, together
with the 1.89% Class A-1 Asset-Backed Notes, the 2.64% Class A-2 Asset-Backed
Notes and the 4.23% Class A-4 Asset-Backed Notes (collectively, the "Notes"),
are issued under the Indenture, to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights and obligations thereunder of the Issuer, the Indenture Trustee and the
Holders of the Notes. The Notes are subject to all terms of the Indenture.

          The Class A-3 Notes are and shall be equally and ratably secured by
the collateral pledged as security therefor as provided in the Indenture.

          As described above, the entire unpaid principal amount of this Class
A-3 Note shall be due and payable on the earlier of the Class A-3 Final
Distribution Date and the Redemption Date, if any, pursuant to Section 10.1 of
the Indenture. Notwithstanding the foregoing, the entire unpaid principal amount
of the Notes shall be due and payable on the date on which an Event of Default
shall have occurred and be continuing if (i) the Insurer (if an Insurer Default
shall not have occurred and be continuing) or (ii) the Indenture Trustee or the
Holders of Notes evidencing not less than 66 2/3% of the Note Balance (if an
Insurer Default shall have occurred and be continuing) have declared the Notes
to be immediately due and payable in the manner provided in Section 5.2 of the
Indenture. All principal payments on the Class A-3 Notes shall be made pro rata
to the Holders entitled thereto if the Notes have been declared immediately due
and payable.

          Payments of interest on this Class A-3 Note due and payable on any
Distribution Date, together with the installment of principal, if any, due and
payable on such Distribution Date, to the extent not in full payment of this
Class A-3 Note, shall be made by check mailed to the Person whose name appears
as the Holder of this Class A-3 Note (or one or more Predecessor Notes) on the
Note Register as of the close of business on the Record Date preceding such
Distribution Date, except that with respect to Class A-3 Notes registered on the
Record Date in the name of the nominee of the Clearing Agency (initially, such
nominee to be Cede & Co.), payments will be made by wire transfer in immediately
available funds to the account designated by such nominee. Such checks shall be
mailed to the Person entitled thereto at the address of such Person as it
appears on the Note Register as of such Record Date without requiring that this
Class A-3 Note be submitted for notation of payment. Any reduction in the
principal amount of this Class A-3 Note (or any one or more Predecessor Notes)
effected by any payments made on any Distribution Date shall be binding upon all
future Holders of this Class A-3 Note and of any Class A-3 Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof, whether
or not noted hereon. If funds are expected to be available, as provided in the
Indenture, for payment in full of the then remaining unpaid principal amount of
this Class A-3 Note on a Distribution Date, then the Indenture Trustee, in the
name of and on behalf of the Issuer, shall notify the Person who was the Holder
hereof as of the Record Date preceding such Distribution Date by notice mailed
or transmitted by facsimile prior to such Distribution Date, and the amount then
due and payable shall be payable only upon presentation and surrender of this
Class A-3 Note at the Indenture Trustee's Corporate Trust Office or at the

                                      A3-4

<PAGE>

office of the Indenture Trustee's agent appointed for such purposes located in
New York, New York.

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

          As provided in the Indenture, the Notes may be redeemed, in whole but
not in part, in the manner and to the extent described in the Indenture and the
Sale and Servicing Agreement.

          As provided in the Indenture, and subject to certain limitations set
forth therein, the transfer of this Class A-3 Note may be registered on the Note
Register upon surrender of this Class A-3 Note for registration of transfer at
the office or agency designated by the Issuer pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or
such Holder's attorney duly authorized in writing, with such signature
guaranteed by an "eligible guarantor institution" meeting the requirements of
the Note Registrar, and thereupon one or more new Class A-3 Notes in any
authorized denomination and in the same aggregate principal amount will be
issued to the designated transferee or transferees. No service charge will be
charged for any registration of transfer or exchange of this Class A-3 Note, but
the transferor may be required to pay a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such registration
of transfer or exchange.

          Each Noteholder or Note Owner, by its acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note, covenants and agrees that
no recourse may be taken, directly or indirectly, with respect to the
obligations of the Issuer or the Indenture Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith
against (i) the Indenture Trustee or the Owner Trustee, each in its individual
capacity, (ii) any holder of a beneficial interest in the Issuer or (iii) any
partner, owner, beneficiary, agent, officer, director or employee of the
Indenture Trustee or the Owner Trustee, each in its individual capacity, or any
holder of a beneficial interest in the Issuer, the Owner Trustee or the
Indenture Trustee or any successor or assign of the Indenture Trustee or the
Owner Trustee, each in its individual capacity, except as any such Person may
have expressly agreed and except that any such partner, owner or beneficiary
shall be fully liable, to the extent provided by applicable law, for any unpaid
consideration for stock, unpaid capital contribution for stock, unpaid capital
contribution or failure to pay any installment or call owing to such entity.

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

          The Issuer has entered into the Indenture and this Class A-3 Note is
issued with the intention that, for federal, state and local income, and
franchise tax purposes, the Notes will

                                      A3-5

<PAGE>

qualify as indebtedness of the Issuer secured by the Trust Estate. Each
Noteholder or Note Owner, by its acceptance of a Note or, in the case of a Note
Owner, a beneficial interest in a Note, agrees to treat the Notes for federal,
state and local income, single business and franchise tax purposes as
indebtedness of the Issuer.

          Prior to the due presentment for registration of transfer of this
Class A-3 Note, the Issuer, the Indenture Trustee and any agent of the Issuer or
the Indenture Trustee may treat the Person in whose name this Class A-3 Note (as
of the day of determination or as of such other date as may be specified in the
Indenture) is registered as the owner hereof for all purposes, whether or not
this Class A-3 Note shall be overdue, and none of the Issuer, the Indenture
Trustee or any such agent shall be affected by notice to the contrary.

          The Indenture permits the Owner Trustee, on behalf of the Issuer, and
the Indenture Trustee, with certain exceptions therein provided, to amend or
waive from time to time certain terms and conditions set forth in the Indenture
without the consent of the Holders of the Notes but with the consent of the
Insurer (if an Insurer Default shall not have occurred and be continuing). The
Indenture also permits the Owner Trustee, on behalf of the Issuer, and the
Indenture Trustee, with certain exceptions as therein provided, to amend or
waive from time to time certain terms and conditions set forth in the Indenture
with the consent of the Insurer (if an Insurer Default shall not have occurred
and be continuing) and the Holders of Notes evidencing not less than 51% of the
Note Balance. The Indenture also permits the Insurer (if an Insurer Default
shall not have occurred and be continuing) or the Holders of Notes evidencing
not less than 51% of the Note Balance, with the consent of the Insurer (if an
Insurer Default shall not have occurred and be continuing), on behalf of the
Holders of all the Notes, to waive compliance by the Issuer with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Insurer, the Holders of
51% of the Note Balance, or the Holder of this Class A-3 Note (or any one or
more Predecessor Notes) shall be conclusive and binding on such Holder and on
all future Holders of this Class A-3 Note and of any Class A-3 Note issued upon
the registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Class A-3
Note.

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

          The Indenture permits the Issuer, under certain circumstances, to
consolidate or merge with or into another Person, subject to the rights of the
Indenture Trustee and the Holders of Notes under the Indenture.

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

          This Class A-3 Note and the Indenture shall be governed by, and
construed in accordance with, the laws of the State of New York, and the
obligations, rights and remedies of the parties hereunder and thereunder shall
be determined in accordance with such laws.

                                      A3-6

<PAGE>

          No reference herein to the Indenture, and no provision of this Note or
of the Indenture, shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Class
A-3 Note at the times, place and rate, and in the coin or currency, herein
prescribed.

          Anything herein to the contrary notwithstanding, except as expressly
provided in the Transaction Documents, none of Wells Fargo Bank Minnesota,
National Association, in its individual capacity, The Bank of New York, in its
individual capacity, any holder of a beneficial interest in the Issuer, or any
of their respective partners, beneficiaries, agents, officers, directors,
employees or successors or assigns shall be personally liable for, nor shall
recourse be had to any of them for, the payment of principal of or interest on
this Class A-3 Note or the performance of, or omission to perform, any of the
covenants, obligations or indemnifications contained in the Indenture. The
Holder of this Note, by its acceptance hereof, agrees that, except as expressly
provided in the Transaction Documents, in the case of an Event of Default under
the Indenture, the Holder shall have no claim against any of the foregoing for
any deficiency, loss or claim resulting therefrom; provided, however, that
nothing contained herein shall be taken to prevent recourse to, or enforcement
against, the assets of the Issuer for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Class A-3 Note.

                                      A3-7

<PAGE>

                                   ASSIGNMENT

SOCIAL SECURITY NUMBER
OR OTHER IDENTIFICATION
NUMBER OF ASSIGNEE: ________________

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

                         (name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints ________________________, attorney, to transfer said Note on the
Note Register, with full power of substitution in the premises.

Dated:

                                         _____________________________________*/

                                         Signature Guaranteed:

                                         _____________________________________*/

*/   NOTICE: The signature to this assignment must correspond with the name of
     the registered owner as it appears on the face of the within Note in every
     particular, without alteration, enlargement or any change whatsoever. Such
     signature must be guaranteed by an "eligible guarantor institution" meeting
     the requirements of the Note Registrar.

                                      A3-8

<PAGE>

                                   Exhibit A-4

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

          THE PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH IN THE INDENTURE
(AS DEFINED BELOW). THE OUTSTANDING PRINCIPAL BALANCE OF THIS NOTE AT ANY TIME
MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

REGISTERED                                                          $107,361,000

NO. A-4                                                      CUSIP NO. 143128AU0

                         CARMAX AUTO OWNER TRUST 2002-1

                        4.23% CLASS A-4 ASSET-BACKED NOTE

          CarMax Auto Owner Trust 2002-1, a statutory business trust organized
and existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to Cede & Co., or its
registered assigns, the principal sum of ONE HUNDRED SEVEN MILLION THREE HUNDRED
SIXTY-ONE THOUSAND DOLLARS payable on each Distribution Date in an amount equal
to the aggregate amount, if any, payable from the Note Payment Account in
respect of principal on the Class A-4 Notes pursuant to Section 2.8 of the
Indenture dated as of June 1, 2002 (as amended, supplemented or otherwise
modified and in effect from time to time, the "Indenture") between the Issuer
and Wells Fargo Bank Minnesota, National Association, a national banking
association, as Indenture Trustee (in such capacity, the "Indenture Trustee");
provided, however, that, except under certain limited circumstances described in
the Indenture, principal of this Class A-4 Note will not be due and payable
until the Class A-1 Notes, the Class A-2 Notes and the Class A-3 Notes have been
paid in full; and, provided further, that, if not paid prior to such date, the
unpaid principal amount of this Class A-4 Note shall be due and payable on the
earlier of the September 2007 Distribution Date (the "Class A-4 Final
Distribution Date") and the Redemption Date, if any, pursuant to Section 10.1 of
the Indenture. Capitalized terms used but not defined herein are defined in
Article I of the Indenture, which also contains rules as to construction that
shall be applicable hereto.

          The Issuer shall pay interest on this Class A-4 Note at the rate per
annum shown above on each Distribution Date, until the principal of this Class
A-4 Note is paid or made

                                      A4-1

<PAGE>

available for payment, on the principal amount of this Class A-4 Note
outstanding on the preceding Distribution Date (after giving effect to all
payments of principal made on such preceding Distribution Date), subject to
certain limitations contained in Section 3.1 of the Indenture. Interest on this
Class A-4 Note shall accrue for each Distribution Date from and including the
15th day of the preceding month (or, in the case of the initial Distribution
Date or if no interest has been paid, from and including the Closing Date) to
but excluding the 15th day of the month in which such Distribution Date occurs.
Interest shall be computed on the basis of a 360-day year consisting of twelve
30-day months. Interest on this Class A-4 Note on each Distribution Date shall
equal one-twelfth of the product of (i) the rate per annum shown above and (ii)
the principal amount of this Class A-4 Note outstanding on the preceding
Distribution Date (after giving effect to all payments of principal made on such
preceding Distribution Date); provided, however, that the interest payable on
this Class A-4 Note on July 15, 2002 shall equal $239,683.43. The principal of
and interest on this Class A-4 Note shall be paid in the manner specified on the
reverse hereof.

          "Distribution Date" means the 15th day of each month or, if such 15th
day is not a Business Day, the following Business Day, commencing on July 15,
2002.

          The principal of and interest on this Class A-4 Note are payable in
such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts. All payments made by
the Issuer with respect to this Class A-4 Note shall be applied first to
interest due and payable on this Class A-4 Note as provided above and then to
the unpaid principal of this Class A-4 Note.

          Reference is hereby made to the further provisions of this Class A-4
Note set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if fully set forth on the face of this Class
A-4 Note.

          Unless the certificate of authentication hereon has been executed by
an authorized officer of the Indenture Trustee, by manual or facsimile
signature, this Class A-4 Note shall not entitle the Holder hereof to any
benefit under the Indenture or be valid for any purpose.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      A4-2

<PAGE>

          IN WITNESS WHEREOF, the Issuer has caused this Class A-4 Note to be
duly executed as of the date set forth below.

Dated: June 26, 2002

                                        CARMAX AUTO OWNER TRUST 2002-1

                                        By:  THE BANK OF NEW YORK,
                                             not in its individual capacity but
                                             solely as Owner Trustee

                                        By:  ___________________________________
                                             Name:
                                             Title:

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

          This is one of the Class A-4 Notes designated above and referred to in
the within-mentioned Indenture.

Dated: June 26, 2002

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

                                        By:  ___________________________
                                             Name:
                                             Title:

                                      A4-3

<PAGE>

                           [REVERSE OF CLASS A-4 NOTE]

          This Class A-4 Note is one of a duly authorized issue of Notes of the
Issuer, designated as its 4.23% Class A-4 Asset-Backed Notes, which, together
with the 1.89% Class A-1 Asset-Backed Notes, the 2.64% Class A-2 Asset-Backed
Notes and the 3.59% Class A-3 Asset-Backed Notes (collectively, the "Notes"),
are issued under the Indenture, to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights and obligations thereunder of the Issuer, the Indenture Trustee and the
Holders of the Notes. The Notes are subject to all terms of the Indenture.

          The Class A-4 Notes are and shall be equally and ratably secured by
the collateral pledged as security therefor as provided in the Indenture.

          As described above, the entire unpaid principal amount of this Class
A-4 Note shall be due and payable on the earlier of the Class A-4 Final
Distribution Date and the Redemption Date, if any, pursuant to Section 10.1 of
the Indenture. Notwithstanding the foregoing, the entire unpaid principal amount
of the Notes shall be due and payable on the date on which an Event of Default
shall have occurred and be continuing if (i) the Insurer (if an Insurer Default
shall not have occurred and be continuing) or (ii) the Indenture Trustee or the
Holders of Notes evidencing not less than 66 2/3% of the Note Balance (if an
Insurer Default shall have occurred and be continuing) have declared the Notes
to be immediately due and payable in the manner provided in Section 5.2 of the
Indenture. All principal payments on the Class A-4 Notes shall be made pro rata
to the Holders entitled thereto if the Notes have been declared immediately due
and payable.

          Payments of interest on this Class A-4 Note due and payable on any
Distribution Date, together with the installment of principal, if any, due and
payable on such Distribution Date, to the extent not in full payment of this
Class A-4 Note, shall be made by check mailed to the Person whose name appears
as the Holder of this Class A-4 Note (or one or more Predecessor Notes) on the
Note Register as of the close of business on the Record Date preceding such
Distribution Date, except that with respect to Class A-4 Notes registered on the
Record Date in the name of the nominee of the Clearing Agency (initially, such
nominee to be Cede & Co.), payments will be made by wire transfer in immediately
available funds to the account designated by such nominee. Such checks shall be
mailed to the Person entitled thereto at the address of such Person as it
appears on the Note Register as of such Record Date without requiring that this
Class A-4 Note be submitted for notation of payment. Any reduction in the
principal amount of this Class A-4 Note (or any one or more Predecessor Notes)
effected by any payments made on any Distribution Date shall be binding upon all
future Holders of this Class A-4 Note and of any Class A-4 Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof, whether
or not noted hereon. If funds are expected to be available, as provided in the
Indenture, for payment in full of the then remaining unpaid principal amount of
this Class A-4 Note on a Distribution Date, then the Indenture Trustee, in the
name of and on behalf of the Issuer, shall notify the Person who was the Holder
hereof as of the Record Date preceding such Distribution Date by notice mailed
or transmitted by facsimile prior to such Distribution Date, and the amount then
due and payable shall be payable only upon presentation and surrender of this
Class A-4 Note at the Indenture Trustee's Corporate Trust Office or at the

                                      A4-4

<PAGE>

office of the Indenture Trustee's agent appointed for such purposes located in
New York, New York.

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

          As provided in the Indenture, the Notes may be redeemed, in whole but
not in part, in the manner and to the extent described in the Indenture and the
Sale and Servicing Agreement.

          As provided in the Indenture, and subject to certain limitations set
forth therein, the transfer of this Class A-4 Note may be registered on the Note
Register upon surrender of this Class A-4 Note for registration of transfer at
the office or agency designated by the Issuer pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or
such Holder's attorney duly authorized in writing, with such signature
guaranteed by an "eligible guarantor institution" meeting the requirements of
the Note Registrar, and thereupon one or more new Class A-4 Notes in any
authorized denomination and in the same aggregate principal amount will be
issued to the designated transferee or transferees. No service charge will be
charged for any registration of transfer or exchange of this Class A-4 Note, but
the transferor may be required to pay a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such registration
of transfer or exchange.

          Each Noteholder or Note Owner, by its acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note, covenants and agrees that
no recourse may be taken, directly or indirectly, with respect to the
obligations of the Issuer or the Indenture Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith
against (i) the Indenture Trustee or the Owner Trustee, each in its individual
capacity, (ii) any holder of a beneficial interest in the Issuer or (iii) any
partner, owner, beneficiary, agent, officer, director or employee of the
Indenture Trustee or the Owner Trustee, each in its individual capacity, or any
holder of a beneficial interest in the Issuer, the Owner Trustee or the
Indenture Trustee or any successor or assign of the Indenture Trustee or the
Owner Trustee, each in its individual capacity, except as any such Person may
have expressly agreed and except that any such partner, owner or beneficiary
shall be fully liable, to the extent provided by applicable law, for any unpaid
consideration for stock, unpaid capital contribution for stock, unpaid capital
contribution or failure to pay any installment or call owing to such entity.

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

          The Issuer has entered into the Indenture and this Class A-4 Note is
issued with the intention that, for federal, state and local income, and
franchise tax purposes, the Notes will

                                      A4-5

<PAGE>

qualify as indebtedness of the Issuer secured by the Trust Estate. Each
Noteholder or Note Owner, by its acceptance of a Note or, in the case of a Note
Owner, a beneficial interest in a Note, agrees to treat the Notes for federal,
state and local income, single business and franchise tax purposes as
indebtedness of the Issuer.

          Prior to the due presentment for registration of transfer of this
Class A-4 Note, the Issuer, the Indenture Trustee and any agent of the Issuer or
the Indenture Trustee may treat the Person in whose name this Class A-4 Note (as
of the day of determination or as of such other date as may be specified in the
Indenture) is registered as the owner hereof for all purposes, whether or not
this Class A-4 Note shall be overdue, and none of the Issuer, the Indenture
Trustee or any such agent shall be affected by notice to the contrary.

          The Indenture permits the Owner Trustee, on behalf of the Issuer, and
the Indenture Trustee, with certain exceptions therein provided, to amend or
waive from time to time certain terms and conditions set forth in the Indenture
without the consent of the Holders of the Notes but with the consent of the
Insurer (if an Insurer Default shall not have occurred and be continuing). The
Indenture also permits the Owner Trustee, on behalf of the Issuer, and the
Indenture Trustee, with certain exceptions as therein provided, to amend or
waive from time to time certain terms and conditions set forth in the Indenture
with the consent of the Insurer (if an Insurer Default shall not have occurred
and be continuing) and the Holders of Notes evidencing not less than 51% of the
Note Balance. The Indenture also permits the Insurer (if an Insurer Default
shall not have occurred and be continuing) or the Holders of Notes evidencing
not less than 51% of the Note Balance, with the consent of the Insurer (if an
Insurer Default shall not have occurred and be continuing), on behalf of the
Holders of all the Notes, to waive compliance by the Issuer with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Insurer, the Holders of
51% of the Note Balance, or the Holder of this Class A-4 Note (or any one or
more Predecessor Notes) shall be conclusive and binding on such Holder and on
all future Holders of this Class A-4 Note and of any Class A-4 Note issued upon
the registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Class A-4
Note.

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

          The Indenture permits the Issuer, under certain circumstances, to
consolidate or merge with or into another Person, subject to the rights of the
Indenture Trustee and the Holders of Notes under the Indenture.

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

          This Class A-4 Note and the Indenture shall be governed by, and
construed in accordance with, the laws of the State of New York, and the
obligations, rights and remedies of the parties hereunder and thereunder shall
be determined in accordance with such laws.

                                      A4-6

<PAGE>

          No reference herein to the Indenture, and no provision of this Note or
of the Indenture, shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Class
A-4 Note at the times, place and rate, and in the coin or currency, herein
prescribed.

          Anything herein to the contrary notwithstanding, except as expressly
provided in the Transaction Documents, none of Wells Fargo Bank Minnesota,
National Association, in its individual capacity, The Bank of New York, in its
individual capacity, any holder of a beneficial interest in the Issuer, or any
of their respective partners, beneficiaries, agents, officers, directors,
employees or successors or assigns shall be personally liable for, nor shall
recourse be had to any of them for, the payment of principal of or interest on
this Class A-4 Note or the performance of, or omission to perform, any of the
covenants, obligations or indemnifications contained in the Indenture. The
Holder of this Note, by its acceptance hereof, agrees that, except as expressly
provided in the Transaction Documents, in the case of an Event of Default under
the Indenture, the Holder shall have no claim against any of the foregoing for
any deficiency, loss or claim resulting therefrom; provided, however, that
nothing contained herein shall be taken to prevent recourse to, or enforcement
against, the assets of the Issuer for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Class A-4 Note.

                                      A4-7

<PAGE>

                                   ASSIGNMENT

SOCIAL SECURITY NUMBER
OR OTHER IDENTIFICATION
NUMBER OF ASSIGNEE: _________________

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

                         (name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints ________________________, attorney, to transfer said Note on the
Note Register, with full power of substitution in the premises.

Dated:

                                        ______________________________________*/

                                        Signature Guaranteed:

                                        ______________________________________*/

*/   NOTICE: The signature to this assignment must correspond with the name of
     the registered owner as it appears on the face of the within Note in every
     particular, without alteration, enlargement or any change whatsoever. Such
     signature must be guaranteed by an "eligible guarantor institution" meeting
     the requirements of the Note Registrar.

                                      A4-8

<PAGE>

                                    Exhibit B
                           Form of Opinion of Counsel

                                 [SEE ATTACHED]

                                       B-1<PAGE>

                                                                    Exhibit 10.1

                                                                [EXECUTION COPY]

                         CARMAX AUTO OWNER TRUST 2002-1,
                                   as Issuer,

                        POOLED AUTO SECURITIES SHELF LLC,
                                  as Depositor,

                                       and

                         CARMAX AUTO SUPERSTORES, INC.,
                             as Seller and Servicer

                         ______________________________

                          SALE AND SERVICING AGREEMENT

                            Dated as of June 1, 2002

                         ______________________________

<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                      Page
<S>                                                                                   <C>

                                       ARTICLE I
                                      DEFINITIONS

SECTION 1.1  Definitions ...........................................................     1
SECTION 1.2  Other Definitional Provisions .........................................    16

                                      ARTICLE II
                                    TRUST PROPERTY

SECTION 2.1  Conveyance of Trust Property ..........................................   17
SECTION 2.2  Representations and Warranties of the Seller as to the Receivables ....   18
SECTION 2.3  Representations and Warranties of the Depositor as to the Receivables .   19
SECTION 2.4  Repurchase by Seller upon Breach ......................................   20
SECTION 2.5  Custody of Receivable Files ...........................................   20
SECTION 2.6  Duties of Servicer as Custodian .......................................   21
SECTION 2.7  Instructions; Authority to Act ........................................   22
SECTION 2.8  Indemnification of the Custodian ......................................   22
SECTION 2.9  Effective Period and Termination ......................................   22

                                     ARTICLE III
                    ADMINISTRATION AND SERVICING OF RECEIVABLES AND
                                OTHER TRUST PROPERTY

SECTION 3.1  Duties of Servicer ....................................................   23
SECTION 3.2  Collection and Allocation of Receivable Payments ......................   23
SECTION 3.3  Realization upon Receivables ..........................................   24
SECTION 3.4  Physical Damage Insurance .............................................   24
SECTION 3.5  Maintenance of Security Interests in Financed Vehicles ................   24
SECTION 3.6  Amendment of Receivable Terms .........................................   25
SECTION 3.7  Purchase by Servicer upon Breach ......................................   25
SECTION 3.8  Servicing Compensation ................................................   25
SECTION 3.9  Servicer's Certificate ................................................   25
SECTION 3.10 Annual Statement as to Compliance; Notice of Event of
             Servicing Termination .................................................   26
SECTION 3.11 Annual Independent Certified Public Accountants' Reports ..............   27
SECTION 3.12 Access to Certain Documentation and Information Regarding
             Receivables ...........................................................   27
SECTION 3.13 Reports to the Commission .............................................   27
SECTION 3.14 Reports to Rating Agencies ............................................   28
</TABLE>

                                       i

<PAGE>

<TABLE>
<S>                                                                                        <C>
                                      ARTICLE IV
                DISTRIBUTIONS; RESERVE ACCOUNT; STATEMENTS TO NOTEHOLDERS
                               AND CERTIFICATEHOLDERS

SECTION 4.1  Accounts .................................................................... 28
SECTION 4.2  Collections ................................................................. 29
SECTION 4.3  Application of Collections .................................................. 30
SECTION 4.4  [RESERVED] .................................................................. 30
SECTION 4.5  Additional Deposits ......................................................... 30
SECTION 4.6  Determination Date Calculations; Application of Available Funds ............. 30
SECTION 4.7  Reserve Account ............................................................. 33
SECTION 4.8  Net Deposits ................................................................ 35
SECTION 4.9  Statements to Noteholders and Certificateholders ............................ 35
SECTION 4.10 Control of Securities Accounts .............................................. 36
SECTION 4.11 Policy Matters .............................................................. 36

                                      ARTICLE V
                                     [RESERVED]

                                     ARTICLE VI
                                    THE DEPOSITOR

SECTION 6.1  Representations and Warranties of Depositor ................................. 37
SECTION 6.2  Liability of Depositor; Indemnities ......................................... 39
SECTION 6.3  Merger or Consolidation of, or Assumption of the Obligations of, Depositor .. 40
SECTION 6.4  Limitation on Liability of Depositor and Others ............................. 40
SECTION 6.5  Depositor May Own Notes or Certificates ..................................... 41
SECTION 6.6  RESERVED .................................................................... 41
SECTION 6.7  Certain Limitations ......................................................... 41

                                   ARTICLE VII
                                  THE SERVICER

SECTION 7.1  Representations and Warranties of Servicer .................................. 42
SECTION 7.2  Liability of Servicer; Indemnities .......................................... 44
SECTION 7.3  Merger or Consolidation of, or Assumption of the Obligations
             of, Servicer ................................................................ 45
SECTION 7.4  Limitation on Liability of Servicer and Others .............................. 46
SECTION 7.5  Delegation of Duties ........................................................ 46
SECTION 7.6  Servicer Not to Resign ...................................................... 46
SECTION 7.7  Servicer May Own Notes or Certificates ...................................... 46

                                  ARTICLE VIII
                              SERVICING TERMINATION

SECTION 8.1  Events of Servicing Termination ............................................. 47
</TABLE>

                                     ii

<PAGE>

<TABLE>
<S>                                                                                        <C>
SECTION 8.2   Indenture Trustee to Act; Appointment of Successor Servicer ................ 49
SECTION 8.3   Effect of Servicing Transfer ............................................... 50
SECTION 8.4   Notification to Insurer, Noteholders, Certificateholders
              and Rating Agencies ........................................................ 50
SECTION 8.5   Waiver of Past Events of Servicing Termination ............................. 50

                                     ARTICLE IX
                                     TERMINATION

SECTION 9.1   Optional Purchase of All Receivables ....................................... 51

                                      ARTICLE X
                               MISCELLANEOUS PROVISIONS

SECTION 10.1  Amendment .................................................................. 52
SECTION 10.2  Protection of Title to Trust ............................................... 54
SECTION 10.3  GOVERNING LAW .............................................................. 56
SECTION 10.4  Notices .................................................................... 56
SECTION 10.5  Severability of Provisions ................................................. 56
SECTION 10.6  Assignment ................................................................. 56
SECTION 10.7  Further Assurances ......................................................... 57
SECTION 10.8  No Waiver; Cumulative Remedies ............................................. 57
SECTION 10.9  Third-Party Beneficiaries .................................................. 57
SECTION 10.10 Actions by Noteholder or Certificateholders ................................ 57
SECTION 10.11 Counterparts ............................................................... 57
SECTION 10.12 No Bankruptcy Petition ..................................................... 58
SECTION 10.13 Limitation of Liability of Owner Trustee and Indenture Trustee ............. 58
SECTION 10.14 Insurer Defense Costs ...................................................... 58

                                    SCHEDULES

SCHEDULE 1    Receivable Schedule
SCHEDULE 2    Location of Receivable Files

                                    EXHIBITS

EXHIBIT A     Representations and Warranties
EXHIBIT B     Form of Servicer's Certificate
EXHIBIT C     Form of Statement to Noteholders
EXHIBIT D     Form of Statement to Certificateholders
</TABLE>

                                      iii

<PAGE>

                  SALE AND SERVICING AGREEMENT, dated as of June 1, 2002 (as
amended, supplemented or otherwise modified and in effect from time to time,
this "Agreement"), by and among CARMAX AUTO OWNER TRUST 2002-1, a Delaware
statutory business trust (the "Trust"), POOLED AUTO SECURITIES SHELF LLC, a
Delaware limited liability company (the "Depositor"), and CARMAX AUTO
SUPERSTORES, INC., a Virginia corporation, as seller (in such capacity, the
"Seller") and servicer (in such capacity, the "Servicer").

                  WHEREAS, the Trust desires to purchase certain motor vehicle
retail installment sale contracts originated or acquired by CarMax Auto
Superstores, Inc. in the ordinary course of business and sold to the Depositor
as of the date hereof;

                  WHEREAS, the Depositor is willing to sell such contracts to
the Trust as of the date hereof; and

                  WHEREAS, the Servicer is willing to service such contracts on
behalf of the Trust;

                  NOW, THEREFORE, in consideration of the mutual covenants
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

                                   ARTICLE I
                                  DEFINITIONS

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

                  "Additional Certificate Interest" shall mean, for any
Distribution Date, the sum of (i) all accrued but unpaid Monthly Certificate
Interest for previous Distribution Dates plus (ii) to the extent permitted by
law, interest on such accrued but unpaid Monthly Certificate Interest at the
Certificate Rate.

                  "Additional Note Interest" shall mean, for any Distribution
Date and any class of Notes, the sum of (i) all accrued but unpaid Monthly Note
Interest for previous Distribution Dates for such class plus (ii) to the extent
permitted by law, interest on such accrued but unpaid Monthly Note Interest at
the Note Rate applicable to such class.

                  "Additional Servicing Fee" shall mean, for any Collection
Period, if a successor Servicer has been appointed pursuant to Section 8.2, the
amount, if any, by which (i) the compensation payable to such successor Servicer
for such Collection Period exceeds (ii) the Monthly Servicing Fee for such
Collection Period (but only to the extent such excess has been approved by the
Insurer in accordance with Section 8.2).

                  "Affiliate" shall mean, with respect to any Person, any other
Person directly or indirectly controlling, controlled by or under direct or
indirect common control with such Person. For purposes of this definition,
"control" when used with respect to any Person shall mean the

<PAGE>

power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or
otherwise.

                  "Amount Financed" shall mean, with respect to any Receivable,
the aggregate amount advanced under such Receivable toward the purchase price of
the related Financed Vehicle and any related costs, including accessories,
extended warranty contracts, insurance premiums and other items customarily
financed as part of a motor vehicle retail installment sale contract.

                  "Applicable Tax State" shall mean, as of any date,(i) any
State in which the Owner Trustee maintains the Corporate Trust Office, (ii) any
State in which the Owner Trustee maintains its principal executive offices and
(iii) any State in which the Servicer regularly conducts servicing and
collection activities (other than purely ministerial activities) with respect to
a material portion of the Receivables.

                  "APR" shall mean, with respect to any Receivable, the annual
percentage rate of interest stated in such Receivable.

                  "Authorized Officer" shall mean, as applicable, (i) any
officer within the Corporate Trust Office of the Indenture Trustee, including
any vice president, assistant vice president, secretary or assistant secretary,
or any financial services officer of the Indenture Trustee customarily
performing functions similar to those performed by any of the above designated
officers and also, with respect to a particular matter, any other officer of the
Indenture Trustee to whom such matter is referred because of such officer's
knowledge of and familiarity with the particular subject or (ii) any officer
within the Corporate Trust Office of the Owner Trustee, including any senior
vice president, vice president, assistant vice president, assistant secretary,
assistant treasurer or trust officer of the Owner Trustee customarily performing
functions similar to those performed by any of the above designated officers and
also, with respect to a particular matter, any other officer of the Owner
Trustee to whom such matter is referred because of such officer's knowledge of
and familiarity with the particular subject.

                  "Available Collections" shall mean, for any Distribution Date,
(i) all Obligor payments received with respect to the Receivables during the
preceding Collection Period, (ii) all Liquidation Proceeds received with respect
to the Receivables during the preceding Collection Period, (iii) all interest
earned on funds on deposit in the Collection Account during the preceding
Collection Period, (iv) the aggregate Purchase Amount deposited in the
Collection Account on the Business Day preceding such Distribution Date and (v)
all prepayments received with respect to the Receivables during the preceding
Collection Period attributable to any refunded item included in the Amount
Financed (including amounts received as a result of rebates of extended warranty
contract costs and insurance premiums and proceeds received under physical
damage, theft, credit life and credit disability insurance policies); provided,
however, that Available Collections for any Distribution Date shall not include
any payments or other amounts (including Liquidation Proceeds) received with
respect to any Purchased Receivable the Purchase Amount for which was included
in Available Collections for a previous Distribution Date.

                                       2

<PAGE>

                  "Available Funds" shall mean, for any Distribution Date, the
sum of (i) the Available Collections for such Distribution Date plus (ii) the
Reserve Account Draw Amount, if any, for such Distribution Date (to the extent
deposited in the Collection Account) plus (iii) the Policy Claim Amount, if any,
for such Distribution Date (to the extent deposited in the Collection Account)
plus (iv) the amount, if any, deposited by the Insurer in the Collection Account
on the Business Day preceding such Distribution Date pursuant to Section 5.2(d)
or (e) of the Indenture.

                  "Business Day" shall mean any day other than a Saturday, a
Sunday or a day on which banking institutions or trust companies in New York,
New York, Wilmington, Delaware, Minneapolis, Minnesota , Charlotte, North
Carolina or Richmond, Virginia are authorized or obligated by law, executive
order or governmental decree to remain closed.

                  "CarMax" shall mean CarMax Auto Superstores, Inc., a Virginia
corporation, and its successors and assigns.

                  "Certificate" shall have the meaning specified in the Trust
Agreement.

                  "Certificate Balance" shall mean, at any time, as the context
may require, (i) with respect to all of the Certificates, an amount equal to,
initially, the Initial Certificate Balance and, thereafter, an amount equal to
the Initial Certificate Balance as reduced from time to time by all amounts
allocable to principal previously distributed to the Certificateholders or (ii)
with respect to any Certificate, an amount equal to, initially, the initial
denomination of such Certificate and, thereafter, an amount equal to such
initial denomination as reduced from time to time by all amounts allocable to
principal previously distributed in respect of such Certificate; provided,
however, that in determining whether the Holders of Certificates evidencing the
requisite percentage of the Certificate Balance have given any request, demand,
authorization, direction, notice, consent or waiver hereunder or under any other
Transaction Document, Certificates owned by the Trust, any other obligor upon
the Certificates, the Depositor, the Seller, the Servicer or any Affiliate of
any of the foregoing Persons shall be disregarded and deemed to be excluded from
the Certificate Balance (unless such Persons own 100% of the Certificate Balance
of the Certificates), except that, in determining whether the Indenture Trustee
or the Owner Trustee shall be protected in relying on any such request, demand,
authorization, direction, notice, consent or waiver, only Certificates that a
Responsible Officer of the Indenture Trustee or the Owner Trustee, as
applicable, knows to be so owned shall be so disregarded; and, provided further,
that Certificates that have been pledged in good faith may be regarded as
included in the Certificate Balance if the pledgee establishes to the
satisfaction of the Indenture Trustee or the Owner Trustee, as applicable, the
pledgee's right so to act with respect to such Certificates and that the pledgee
is not the Trust, any other obligor upon the Certificates, the Depositor, the
Seller, the Servicer or any Affiliate of any of the foregoing Persons.

                  "Certificate Final Distribution Date" shall mean the December
2008 Distribution Date.

                  "Certificate Payment Account" shall mean the account
established and maintained as such pursuant to Section 4.1(c).

                                       3

<PAGE>

                  "Certificate Pool Factor" shall mean, as of any Distribution
Date, a seven-digit decimal figure equal to the Certificate Balance as of such
Distribution Date (after giving effect to any reductions of the Certificate
Balance to be made on such Distribution Date) divided by the Initial Certificate
Balance.

                  "Certificate Rate" shall mean 4.48% per annum.

                  "Certificateholder" shall have the meaning specified in the
Trust Agreement.

                  "Class A-1 Final Distribution Date" shall mean the June 2003
Distribution Date.

                  "Class A-1 Monthly Interest" shall mean (i) for the initial
Distribution Date, $109,725.00, and (ii) for any Distribution Date thereafter,
the product of (A) the actual number of days elapsed during the period from and
including the preceding Distribution Date to but excluding such Distribution
Date divided by 360, (B) the Class A-1 Rate and (C) the outstanding principal
balance of the Class A-1 Notes as of the preceding Distribution Date (after
giving effect to all payments of principal made to the Holders of the Class A-1
Notes on or before such preceding Distribution Date).

                  "Class A-1 Notes" shall mean the 1.89% Class A-1 Asset-Backed
Notes issued by the Trust pursuant to the Indenture in the initial aggregate
principal amount of $110,000,000.

                  "Class A-1 Rate" shall mean 1.89% per annum.

                  "Class A-2 Final Distribution Date" shall mean the February
2005 Distribution Date.

                  "Class A-2 Monthly Interest" shall mean (i) for the initial
Distribution Date, $175,560.00, and (ii) for any Distribution Date thereafter,
one-twelfth of the product of (A) the Class A-2 Rate and (B) the outstanding
principal balance of the Class A-2 Notes as of the preceding Distribution Date
(after giving effect to all payments of principal made to the Holders of the
Class A-2 Notes on or before such preceding Distribution Date).

                  "Class A-2 Notes" shall mean the 2.64% Class A-2 Asset-Backed
Notes issued by the Trust pursuant to the Indenture in the initial aggregate
principal amount of $126,000,000.

                  "Class A-2 Rate" shall mean 2.64% per annum.

                  "Class A-3 Final Distribution Date" shall mean the June 2006
Distribution Date.

                  "Class A-3 Monthly Interest" shall mean (i) for the initial
Distribution Date, $301,260.83, and (ii) for any Distribution Date thereafter,
one-twelfth of the product of (A) the Class A-3 Rate and (B) the outstanding
principal balance of the Class A-3 Notes as of the preceding Distribution Date
(after giving effect to all payments of principal made to the Holders of the
Class A-3 Notes on or before such preceding Distribution Date).

                  "Class A-3 Notes" shall mean the 3.59% Class A-3 Asset-Backed
Notes issued by the Trust pursuant to the Indenture in the initial aggregate
principal amount of $159,000,000.

                                       4

<PAGE>

                  "Class A-3 Rate" shall mean 3.59% per annum.

                  "Class A-4 Final Distribution Date" shall mean the September
2007 Distribution Date.

                  "Class A-4 Monthly Interest" shall mean (i) for the initial
Distribution Date, $239,683.43, and (ii) for any Distribution Date thereafter,
one-twelfth of the product of (A) the Class A-4 Rate and (B) the outstanding
principal balance of the Class A-4 Notes as of the preceding Distribution Date
(after giving effect to all payments of principal made to the Holders of the
Class A-4 Notes on or before such preceding Distribution Date).

                  "Class A-4 Notes" shall mean the 4.23% Class A-4 Asset-Backed
Notes issued by the Trust pursuant to the Indenture in the initial aggregate
principal amount of $107,361,000.

                  "Class A-4 Rate" shall mean 4.23% per annum.

                  "Closing Date" shall mean June 26, 2002.

                  "Collection Account" shall mean the account established and
maintained as such pursuant to Section 4.1(a).

                  "Collection Period" shall mean each calendar month during the
term of this Agreement or, in the case of the initial Collection Period, the
period from but excluding the Cutoff Date to and including June 30, 2002.

                  "Commission" shall mean the Securities and Exchange
Commission, and its successors.

                  "Computer Tape" shall mean any computer tape or compact disk
generated by the Seller which provides information relating to the Receivables
and which was used by the Seller in selecting the Receivables sold to the
Depositor under the Receivables Purchase Agreement on the Closing Date.

                  "Corporate Trust Office" shall mean, as applicable, (i) the
principal office of the Indenture Trustee at which at any particular time its
corporate trust business shall be administered, which office at the date of the
execution of this Agreement is located at Wells Fargo Center, MAC #9311-161,
Sixth and Marquette, Minneapolis, Minnesota 55479, Attention: Asset Backed
Securities Department, or at such other address as the Indenture Trustee may
designate from time to time by notice to the Noteholders, the Owner Trustee, the
Depositor, the Seller and the Servicer, or the principal corporate trust office
of any successor Indenture Trustee at the address designated by such successor
Indenture Trustee by notice to the Noteholders, the Owner Trustee, the
Depositor, the Seller and the Servicer or (ii) the principal office of the Owner
Trustee at which at any particular time its corporate trust business shall be
administered, which office at the date of the execution of this Agreement is
located at 5 Penn Plaza, 16th Floor, New York, New York 10001, Attention:
Corporate Trust Division, Asset Backed Securities Group, or at such other
address as the Owner Trustee may designate from time to time by notice to the
Certificateholders, the Indenture Trustee, the Depositor, the Seller and the
Servicer, or the principal corporate trust office of any successor Owner Trustee
at the address designated by such

                                       5

<PAGE>

successor Owner Trustee by notice to the Certificateholders, the Indenture
Trustee, the Depositor, the Seller and the Servicer.

                  "Cutoff Date" shall mean May 31, 2002.

                  "Defaulted Receivable" shall mean a Receivable as to which (i)
any payment, or any part of any payment, due under such Receivable has become
120 days or more delinquent (whether or not the Servicer has repossessed the
related Financed Vehicle), (ii) the Servicer has repossessed and sold the
related Financed Vehicle or (iii) the Servicer has determined in accordance with
its customary practices that such Receivable is uncollectible; provided,
however, that a Receivable shall not be classified as a Defaulted Receivable
until the last day of the Collection Period during which one of the foregoing
events first occurs; and, provided further, that a Purchased Receivable shall
not be deemed to be a Defaulted Receivable.

                  "Delaware Trustee" shall mean The Bank of New York (Delaware),
a Delaware banking corporation, not in its individual capacity but solely as
Delaware Trustee under the Trust Agreement, and any successor Delaware Trustee
under the Trust Agreement.

                  "Depositor" shall mean Pooled Auto Securities Shelf LLC, a
Delaware limited liability company, and its successors.

                  "Determination Date" shall mean the sixth day preceding each
Distribution Date or, if such sixth day is not a Business Day, the following
Business Day, commencing on July 9, 2002.

                  "Distribution Date" shall mean the 15th day of each month or,
if such 15th day is not a Business Day, the following Business Day, commencing
on July 15, 2002.

                  "Eligible Institution" shall mean (i) the corporate trust
department of the Indenture Trustee or the Owner Trustee or (ii) any other
depository institution organized under the laws of the United States of America
or any State or incorporated under the laws of a foreign jurisdiction with a
branch or agency located in the United States of America or any State qualified
to take deposits and subject to supervision and examination by federal or state
banking authorities which at all times has either a long-term unsecured debt
rating of at least Baa3 from Moody's or a long-term unsecured debt rating, a
short-term unsecured debt rating or a certificate of deposit rating acceptable
to Moody's and whose deposits are insured by the Federal Deposit Insurance
Corporation; provided, however, that (A) the commercial paper, short-term debt
obligations or other short-term deposits of the depository institution described
in clause (ii) above must be rated at least Prime-1 by Moody's and at least A-1+
by Standard & Poor's if deposits are to be held in an account maintained with
such depository institution pursuant to this Agreement for fewer than 30 days
and (B) the long-term unsecured debt obligations of the depository institution
described in clause (ii) above must be rated at least AA- by Standard & Poor's
if deposits are to be held in an account maintained with such depository
institution pursuant to this Agreement for more than 30 days.

                  "Eligible Servicer" shall mean a Person which, at the time of
its appointment as Servicer, (i) has a net worth of not less than $50,000,000,
(ii) is servicing a portfolio of motor vehicle retail installment sale contracts
and/or motor vehicle loans, (iii) is legally qualified, and

                                       6

<PAGE>

has the capacity, to service the Receivables, (iv) has demonstrated the ability
to service a portfolio of motor vehicle retail installment sale contracts and/or
motor vehicle loans similar to the Receivables professionally and competently in
accordance with standards of skill and care that are consistent with prudent
industry standards and (v) is qualified and entitled to use pursuant to a
license or other written agreement, and agrees to maintain the confidentiality
of, the software which the Servicer uses in connection with performing its
duties and responsibilities under this Agreement or obtains rights to use, or
develops at its own expense, software which is adequate to perform its duties
and responsibilities under this Agreement.

                  "ERISA" shall mean the Employee Retirement Income Security Act
of 1974, as amended.

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

                  "Excess Collections" shall have the meaning specified in
Section 4.6(d)(xii).

                  "Final Order" shall mean a final, non-appealable order of a
court exercising jurisdiction in an Insolvency Proceeding with respect to the
Depositor, the Seller or the Servicer to the effect that all or any portion of
any payment made to the Noteholders or the Certificateholders must be returned
prior to the Termination Date (as defined in the Policy) as a voidable
preference under the United States Bankruptcy Code (11 U.S.C.), as amended from
time to time.

                  "Final Scheduled Maturity Date" shall mean the December 2008
Distribution Date.

                  "Financed Vehicle" shall mean a new or used motor vehicle,
together with all accessions thereto, securing an Obligor's indebtedness under a
Receivable.

                  "Fiscal Agent" shall have the meaning specified in the Policy.

                  "Fiscal Year" shall mean the period commencing on March 1 of
any year and ending on February 28 (or February 29, if applicable) of the
following year.

                  "Holder" shall mean a Noteholder or a Certificateholder, as
the case may be.

                  "Indenture" shall mean the Indenture, dated as of June 1,
2002, between the Trust and the Indenture Trustee, as amended, supplemented or
otherwise modified and in effect from time to time.

                  "Indenture Trustee" shall mean Wells Fargo Bank Minnesota,
National Association, a national banking association, not in its individual
capacity but solely as Indenture Trustee under the Indenture, and any successor
Indenture Trustee under the Indenture.

                  "Initial Certificate Balance" shall mean, as the context may
require, (i) with respect to all of the Certificates, $10,252,000, or (ii) with
respect to any Certificate, an amount equal to the initial denomination of such
Certificate.

                                       7

<PAGE>

                  "Initial Note Balance" shall mean, as the context may require,
(i) with respect to all of the Notes, $502,361,000, or (ii) with respect to any
Note, an amount equal to the initial denomination of such Note.

                  "Initial Reserve Account Deposit" shall mean $1,281,534.25.

                  "Insolvency Event" shall mean, with respect to any Person, (i)
the making by such Person of a general assignment for the benefit of creditors,
(ii) the filing by such Person of a voluntary petition in bankruptcy, (iii) such
Person being adjudged bankrupt or insolvent, or having had entered against such
Person an order for relief in any bankruptcy or insolvency proceeding, (iv) the
filing by such Person of a petition or answer seeking reorganization,
arrangement, composition, readjustment, liquidation, dissolution or similar
relief under any statute, law or regulation, (v) the filing by such Person of an
answer or other pleading admitting or failing to contest the material
allegations of a petition filed against such Person in any proceeding specified
in clause (vii) below, (vi) seeking, consenting to or acquiescing in the
appointment of a trustee, receiver or liquidator of such Person or of all or any
substantial part of the assets of such Person or (vii) the failure to obtain
dismissal within 60 days of the commencement of any proceeding against such
Person seeking reorganization, arrangement, composition, readjustment,
liquidation, dissolution or similar relief under any statute, law or regulation,
or the entry of any order appointing a trustee, liquidator or receiver of such
Person of all or any substantial portion of the assets of such Person.

                  "Insurance Agreement" shall mean the Insurance and
Reimbursement Agreement, dated as of June 26, 2002, by and among the Insurer,
CarMax, in its individual capacity and as seller and servicer, and the
Depositor, as amended, supplemented or otherwise modified and in effect from
time to time.

                  "Insurance Payment Amount" shall have, for any Distribution
Date, the meaning specified for such Distribution Date in Section 4.6(a).

                  "Insurer" shall mean MBIA Insurance Corporation, a stock
insurance company incorporated under the laws of the State of New York, and its
successors.

                  "Insurer Defense Costs" shall mean all reasonable costs and
expenses of the Insurer (including reasonable costs and expenses of the Owner
Trustee paid by the Insurer) incurred in connection with any action, proceeding
or investigation that could reasonably be expected to adversely affect the Trust
or the Owner Trust Estate or the rights or obligations of the Insurer under any
of the Transaction Documents or under the Policy, including any judgment or
settlement entered into in connection with any such action, proceeding or
investigation; provided, however, that Insurer Defense Costs shall not include
costs or expenses incurred as a result of the willful misfeasance, bad faith or
negligence of the Insurer.

                  "Lien" shall mean a security interest, lien, charge, pledge,
equity or encumbrance of any kind, other than tax liens, mechanics' or
materialmen's liens, judicial liens and any liens that may attach to a Financed
Vehicle by operation of law.

                  "Liquidation Proceeds" shall mean all amounts received by the
Servicer with respect to any Defaulted Receivable, net of the sum of (i) any
expenses incurred by the Servicer

                                       8

<PAGE>

in connection with collection of such Receivable and the disposition of the
related Financed Vehicle (to the extent determinable by the Servicer and not
previously reimbursed) plus (ii) any amounts required by law to be remitted to
the related Obligor.

                  "Monthly Certificate Interest" shall mean (i) for the initial
Distribution Date, $24,240.28, and (ii) for any Distribution Date thereafter,
one-twelfth of the product of (A) the Certificate Rate and (B) the Certificate
Balance as of the immediately preceding Distribution Date (after giving effect
to all payments of principal made to the Certificateholders on or before such
preceding Distribution Date).

                  "Monthly Certificate Principal" shall mean, for any
Distribution Date on or after which the Notes have been paid in full, the lesser
of (i) the Certificate Balance as of the day preceding such Distribution Date
and (ii) the amount necessary to reduce the Certificate Balance as of the day
preceding such Distribution Date to the Pool Balance as of the last day of the
preceding Collection Period; provided, however, that the Monthly Certificate
Principal for the Certificate Final Distribution Date shall equal the amount
necessary to reduce the outstanding principal balance of the Certificates to
zero.

                  "Monthly Note Interest" shall mean, for any Distribution Date,
the sum of the Class A-1 Monthly Interest, the Class A-2 Monthly Interest, the
Class A-3 Monthly Interest and the Class A-4 Monthly Interest, in each case for
such Distribution Date.

                  "Monthly Note Principal" shall mean, for any Distribution
Date, the lesser of (i) the Note Balance as of the day preceding such
Distribution Date and (ii) the amount necessary to reduce the sum of the Note
Balance plus the Certificate Balance as of the day preceding such Distribution
Date to the Pool Balance as of the last day of the preceding Collection Period;
provided, however, that the Monthly Note Principal for the Note Final
Distribution Date for any class of Notes shall equal the greater of (i) the
amount otherwise calculated pursuant to this definition and (ii) the outstanding
principal balance of the Notes of such class as of the day preceding such
Distribution Date.

                  "Monthly Remittance Condition" shall have the meaning
specified in Section 4.2.

                  "Monthly Servicing Fee" shall mean, for any Collection Period,
the fee payable to the Servicer on the following Distribution Date for services
rendered during such Collection Period as determined pursuant to Section 3.8.

                  "Moody's" shall mean Moody's Investors Service, Inc., and its
successors.

                  "Motor Vehicle Receivables" shall have the meaning specified
in Section 6.7(a).

                  "Net Losses" shall mean, with respect to any Collection
Period, the excess, if any, of (i) the aggregate Principal Balance of all
Receivables that became Defaulted Receivables during such Collection Period over
(ii) the aggregate Liquidation Proceeds received by the Servicer during such
Collection Period.

                  "Note Balance" shall mean, at any time, as the context may
require, (i) with respect to all of the Notes, an amount equal to, initially,
the Initial Note Balance and, thereafter,

                                       9

<PAGE>

an amount equal to the Initial Note Balance as reduced from time to time by all
amounts allocable to principal previously distributed to the Noteholders or (ii)
with respect to any Note, an amount equal to, initially, the initial
denomination of such Note and, thereafter, an amount equal to such initial
denomination as reduced from time to time by all amounts allocable to principal
previously distributed in respect of such Note; provided, however, that in
determining whether the Holders of Notes evidencing the requisite percentage of
the Note Balance have given any request, demand, authorization, direction,
notice, consent or waiver hereunder or under any other Transaction Document,
Notes owned by the Trust, any other obligor upon the Notes, the Depositor, the
Seller, the Servicer or any Affiliate of any of the foregoing Persons shall be
disregarded and deemed to be excluded from the Note Balance (unless such Persons
own 100% of the Note Balance), except that, in determining whether the Indenture
Trustee or the Owner Trustee shall be protected in relying on any such request,
demand, authorization, direction, notice, consent or waiver, only Notes that a
Responsible Officer of the Indenture Trustee or the Owner Trustee, as
applicable, knows to be so owned shall be so disregarded; and, provided further,
that Notes that have been pledged in good faith may be regarded as included in
the Note Balance if the pledgee establishes to the satisfaction of the Indenture
Trustee or the Owner Trustee, as applicable, the pledgee's right so to act with
respect to such Notes and that the pledgee is not the Trust, any other obligor
upon the Notes, the Depositor, the Seller, the Servicer or any Affiliate of any
of the foregoing Persons.

                  "Note Final Distribution Date" shall mean, as applicable, the
Class A-1 Final Distribution Date, the Class A-2 Final Distribution Date, the
Class A-3 Final Distribution Date or the Class A-4 Final Distribution Date.

                  "Note Payment Account" shall mean the account established and
maintained as such pursuant to Section 4.1(b).

                  "Note Pool Factor" shall mean, with respect to any class of
Notes as of any Distribution Date, a seven-digit decimal figure equal to the
outstanding principal balance of such class as of such Distribution Date (after
giving effect to any reductions of such outstanding principal balance to be made
on such Distribution Date) divided by the original outstanding principal balance
of such class.

                  "Note Rate" shall mean, in the case of the Class A-1 Notes,
the Class A-1 Rate, in the case of the Class A-2 Notes, the Class A-2 Rate, in
the case of the Class A-3 Notes, the Class A-3 Rate, and in the case of the
Class A-4 Notes, the Class A-4 Rate.

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

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

                  "Officer's Certificate" shall mean a certificate signed by the
chairman, the president, any executive vice president, any senior vice
president, any vice president or the

                                       10

<PAGE>

treasurer of the Depositor or the Servicer, as the case may be, and delivered to
the Owner Trustee and the Indenture Trustee.

                  "Opinion of Counsel" shall mean one or more written opinions
of counsel who may, except as otherwise expressly provided in this Agreement, be
an employee of, or outside counsel to, the Depositor or the Servicer and who
shall be acceptable to the Indenture Trustee, the Owner Trustee or the Rating
Agencies, as applicable.

                  "Owner Trust Estate" shall have the meaning specified in the
Trust Agreement.

                  "Owner Trustee" shall mean The Bank of New York, a New York
banking corporation, not in its individual capacity but solely as Owner Trustee
under the Trust Agreement, and any successor Owner Trustee under the Trust
Agreement.

                  "Permitted Investments" shall mean, on any date of
determination, book-entry securities, negotiable instruments or securities
represented by instruments in bearer or registered form with maturities not
exceeding the next Distribution Date which evidence:

                        (i)    direct obligations of, and obligations fully
          guaranteed by, the United States of America or any agency or
          instrumentality thereof the obligations of which are backed by the
          full faith and credit of the United States of America;

                       (ii)    demand deposits, time deposits, bankers'
          acceptances or certificates of deposit of any depository institution
          or trust company incorporated under the laws of the United States of
          America or any State (or any domestic branch of a foreign bank) and
          subject to supervision and examination by federal or state banking or
          depository institution authorities; provided, however, that such
          investment shall not have an `r' highlighter affixed to its rating and
          its terms shall have a predetermined fixed dollar amount of principal
          due at maturity that cannot vary or change; and, provided further,
          that, at the time of the investment, the commercial paper or other
          short-term unsecured debt obligations (other than such obligations the
          rating of which is based on the credit of a Person other than such
          depository institution or trust company) of such depository
          institution or trust company shall have a rating from each of the
          Rating Agencies in the highest investment category granted thereby;

                       (iii)   repurchase obligations with respect to any
          security that is a direct obligation of, or fully guaranteed by, the
          United States of America or any agency or instrumentality thereof the
          obligations of which are backed by the full faith and credit of the
          United States of America, in either case entered into with a
          depository institution or trust company (acting as principal)
          described in clause (ii) above;

                       (iv)    short-term corporate securities bearing interest
          or sold at a discount issued by any corporation incorporated under the
          laws of the United States of America or any state thereof; provided,
          however, that such investment shall not have an `r' highlighter
          affixed to its rating and its terms shall have a predetermined fixed
          dollar amount of principal due at maturity that cannot vary or change;
          and, provided further, that, at the time of the investment, the
          short-term unsecured debt obligations (other than such obligations the
          rating of which is based on the credit of a Person other than such

                                       11

<PAGE>

          corporation) of such corporation shall have a rating from each of the
          Rating Agencies in the highest investment category granted thereby;

                       (v)    commercial paper having, at the time of the
          investment, a rating from each of the Rating Agencies in the highest
          investment category granted thereby; provided, however, that such
          investment shall not have an `r' highlighter affixed to its rating and
          its terms shall have a predetermined fixed dollar amount of principal
          due at maturity that cannot vary or change;

                       (vi)   guaranteed investment contracts issued by an
          insurance company or other corporation acceptable to the Rating
          Agencies;

                       (vii)  investments in money market funds having a rating
          from each of the Rating Agencies in the highest investment category
          granted thereby (including funds for which the Indenture Trustee or
          the Owner Trustee or any of their respective Affiliates is investment
          manager or advisor); and

                       (viii) any other investment as to which the Rating Agency
          Condition shall have been satisfied and, unless an Insurer Default
          shall have occurred and be continuing, the written consent of the
          Insurer shall have been obtained.

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

                  "Policy Claim Amount" shall have the meaning specified in
Section 4.6(b)(ii).

                  "Pool Balance" shall mean, as of the last day of any
Collection Period, the aggregate Principal Balance of the Receivables as of such
last day; provided, however, that if the Receivables are purchased by the
Servicer pursuant to Section 9.1(a) or are sold or otherwise liquidated by the
Indenture Trustee following an Event of Default pursuant to Section 5.4(a) of
the Indenture, the Pool Balance shall be deemed to be zero as of the last day of
the Collection Period during which such purchase, sale or other liquidation
occurs.

                  "Principal Balance" shall mean, with respect to any Receivable
as of any date, the Amount Financed under such Receivable minus the sum of (i)
that portion of all Scheduled Payments actually received on or prior to such
date allocable to principal using the Simple Interest Method (to the extent
collected) plus (ii) any rebates of extended warranty contract costs or physical
damage, theft, credit life or credit disability insurance premiums included in
the Amount Financed plus (iii) any full or partial prepayment applied to reduce
the unpaid principal balance of such Receivable; provided, however, that (i) the
Principal Balance of a Defaulted Receivable shall be zero as of the last day of
the Collection Period during which it became a Defaulted Receivable and (ii) the
Principal Balance of a Purchased Receivable shall be zero as of the last day of
the Collection Period during which it became a Purchased Receivable.

                  "Purchase Amount" shall mean, with respect to any Distribution
Date and any Receivable to be repurchased by the Seller or purchased by the
Servicer on such Distribution

                                       12

<PAGE>

Date, an amount equal to the sum of (i) the Principal Balance of such Receivable
plus (ii) the amount of accrued but unpaid interest on such Principal Balance at
the related APR to but excluding such Distribution Date.

                  "Purchased Receivable" shall mean a Receivable as to which
payment of the Purchase Amount has been made by the Seller pursuant to Section
2.4 or the Servicer pursuant to Section 3.7 or 9.1.

                  "Rating Agencies" shall mean Moody's and Standard & Poor's and
their respective successors; provided, however, that if no such organization or
successor is any longer in existence, Rating Agency shall mean a nationally
recognized statistical rating organization or other comparable Person designated
by the Trust, notice of which designation shall have been given to the Indenture
Trustee, the Owner Trustee and the Servicer.

                  "Rating Agency Condition" shall mean, with respect to any
action, that each Rating Agency shall have been given prior notice of such
action and (i) shall have notified the Depositor, the Seller, the Servicer, the
Owner Trustee and the Insurer in writing that such action will not result in a
reduction or withdrawal of the then current rating assigned by such Rating
Agency to any class of Notes or the Certificates and (ii) shall have confirmed
to the Insurer that such action will not result in a withdrawal or reduction
below investment grade of the then current shadow rating assigned by such Rating
Agency to any class of Notes or the Certificates, in each case without giving
effect to the benefit of the Policy.

                  "Receivable" shall mean a motor vehicle retail installment
sale contract identified on the Receivable Schedule (as such contract may be
amended, supplemented or otherwise modified and in effect from time to time).

                  "Receivable File" shall mean, with respect to any Receivable,
the electronic entries, documents, instruments and writings with respect to such
Receivable specified in Section 2.5.

                  "Receivable Schedule" shall mean the list identifying the
Receivables attached as Schedule 1 to this Agreement (which list may be in the
form of microfiche or compact disk).

                  "Receivables Purchase Agreement" shall mean the Receivables
Purchase Agreement, dated as of June 1, 2002, between the Seller and the
Depositor, as amended, supplemented or otherwise modified and in effect from
time to time.

                  "Record Date" shall mean, with respect to any Distribution
Date, the close of business on the Business Day preceding such Distribution
Date; provided, however, that (i) if Definitive Notes have been issued with
respect to any class of Notes, Record Date shall mean, with respect to any
Distribution Date for such class, the last Business Day of the calendar month
preceding such Distribution Date and (ii) if Definitive Certificates have been
issued, Record Date shall mean, with respect to any Distribution Date for the
Certificates, the last Business Day of the calendar month preceding such
Distribution Date.

                  "Relevant UCC" shall mean the Uniform Commercial Code as in
effect from time to time in any relevant jurisdiction.

                                       13

<PAGE>

                  "Required Payment Amount" shall have, for any Distribution
Date, the meaning specified for such Distribution Date in Section 4.6(a).

                  "Required Rating" shall mean a short-term unsecured debt
rating of Prime-1 by Moody's and A-1+ by Standard & Poor's.

                  "Required Reserve Account Amount" shall mean, for any
Distribution Date, the greater of (i) $5,126,137.02 and (ii) 2.25% of the Pool
Balance as of the last day of the preceding Collection Period; provided,
however, that the Required Reserve Account Amount for any Distribution Date on
which a Required Reserve Account Increase Event (as defined in the Insurance
Agreement) has occurred and is continuing shall equal the Required Reserve
Account Increase Amount (as defined in the Insurance Agreement) and the Required
Reserve Account Amount for any Distribution Date on which a Trigger Event (as
defined in the Insurance Agreement) has occurred and is continuing shall equal
the Policy Amount; and, provided further, that the Required Reserve Account
Amount for any Distribution Date shall not exceed the sum of the Note Balance
plus the Certificate Balance as of such Distribution Date (after giving effect
to all payments of principal made to the Noteholders and the Certificateholders
on such Distribution Date).

                  "Reserve Account" shall mean the account established and
maintained as such pursuant to Section 4.7(a).

                  "Reserve Account Amount" shall mean, for any Distribution
Date, the amount on deposit in and available for withdrawal from the Reserve
Account on such Distribution Date (after giving effect to all deposits to and
withdrawals from the Reserve Account on the preceding Distribution Date, or, in
the case of the initial Distribution Date, the Closing Date), including all
interest and other income (net of losses and investment expenses) earned on such
amount during the preceding Collection Period.

                  "Reserve Account Deficiency" shall have, for any Distribution
Date, the meaning specified for such Distribution Date in Section 4.6(b).

                  "Reserve Account Draw Amount" shall have the meaning specified
in Section 4.6(b).

                  "Reserve Account Property" shall have the meaning specified in
Section 4.7(a).

                  "Residual Interest" shall have the meaning specified in the
Trust Agreement.

                  "Responsible Officer" shall mean (i) in the case of the
Indenture Trustee, any managing director, principal, vice president, assistant
vice president, assistant secretary, assistant treasurer or trust officer of the
Indenture Trustee or any other officer of the Indenture Trustee customarily
performing functions similar to those performed by any of the above designated
officers and, with respect to a particular corporate trust matter, any other
officer of the Indenture Trustee to whom such matter is referred because of such
officer's knowledge of and familiarity with the particular subject and (ii) in
the case of the Owner Trustee, any vice president, assistant vice president,
assistant secretary, assistant treasurer, trust officer or financial services
officer of the Owner Trustee or any other officer of the Owner Trustee
customarily performing functions

                                       14

<PAGE>

similar to those performed by any of the above designated officers and with
direct responsibility for the administration of the Trust and, with respect to a
particular corporate trust matter, any other officer of the Owner Trustee to
whom such matter is referred because of such officer's knowledge of and
familiarity with the particular subject.

                  "Scheduled Payment" shall mean, for any Receivable, each
payment required to be made by the related Obligor in accordance with the terms
of such Receivable (after giving effect to any deferral of payments pursuant to
Section 3.2 or any rescheduling of payments as a result of any Insolvency Event
with respect to such Obligor).

                  "Securities" shall have the meaning specified in Section
6.7(a).

                  "Securitization Trust" shall have the meaning specified in
Section 6.7(a).

                  "Seller" shall mean CarMax, in its capacity as seller of the
Receivables under the Receivables Purchase Agreement, and its successors in such
capacity.

                  "Servicer" shall mean CarMax, in its capacity as servicer of
the Receivables under this Agreement, and its successors in such capacity.

                  "Servicer's Certificate" shall have the meaning specified in
Section 3.9.

                  "Servicing Officer" shall mean any officer of the Servicer
involved in, or responsible for, the administration and servicing of the
Receivables whose name appears on a list of servicing officers attached to an
Officer's Certificate furnished on the Closing Date to the Owner Trustee and the
Indenture Trustee by the Servicer, as such list may be amended from time to time
by the Servicer in writing.

                  "Servicing Rate" shall mean 1.00% per annum.

                  "Simple Interest Method" shall mean the method of allocating a
fixed level payment between principal and interest, pursuant to which a portion
of such payment is allocated to interest in an amount equal to the product of
the APR of the related Receivable multiplied by the unpaid Principal Balance of
such Receivable multiplied by the period of time (expressed as a fraction of a
year, based on the actual number of days in the applicable calendar month and a
365-day year) elapsed since the preceding payment was made and the remainder of
such payment is allocated to principal.

                  "Simple Interest Receivable" shall mean any Receivable under
which each payment is allocated between principal and interest in accordance
with the Simple Interest Method.

                  "Standard & Poor's" shall mean Standard & Poor's, a division
of The McGraw-Hill Companies, Inc., and its successors.

                  "Total Certificate Interest" shall mean, for any Distribution
Date, the sum of (i) the Monthly Certificate Interest for such Distribution Date
plus (ii) the Additional Certificate Interest for such Distribution Date.

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<PAGE>

                  "Total Note Interest" shall mean, for any Distribution Date
and any class of Notes, the sum of (i) the Monthly Note Interest for such
Distribution Date for such class plus (ii) the Additional Note Interest for such
Distribution Date for such class.

                  "Total Servicing Fee" shall mean, for any Collection Period,
the sum of (i) the Monthly Servicing Fee for such Collection Period plus (ii)
all accrued but unpaid Monthly Servicing Fees for previous Collection Periods.

                  "Transition Costs" shall have the meaning specified in Section
8.1(a).

                  "Trust" shall mean the CarMax Auto Owner Trust 2002-1, a
Delaware statutory business trust.

                  "Trust Agreement" shall mean the Amended and Restated Trust
Agreement, dated as of June 1, 2002, among the Depositor, the Delaware Trustee
and the Owner Trustee, as amended, supplemented or otherwise modified and in
effect from time to time.

                  "Trust Property" shall mean the Receivables and the other
related property sold, transferred, assigned and otherwise conveyed by the
Depositor to the Trust pursuant to Section 2.1(a).

     Section 1.2 Other Definitional Provisions.

     (a) Capitalized terms used herein and not otherwise defined herein have the
meanings assigned to them in the Indenture.

     (b) All terms defined in this Agreement shall have the defined meanings
when used in any certificate or other document made or delivered pursuant hereto
unless otherwise defined therein.

     (c) As used in this Agreement and in any certificate or other document made
or delivered pursuant hereto or thereto, accounting terms not defined in this
Agreement or in any such certificate or other document, and accounting terms
partly defined in this Agreement or in any such certificate or other document to
the extent not defined, shall have the respective meanings assigned to them
under generally accepted accounting principles. To the extent that the
definitions of accounting terms in this Agreement or in any such certificate or
other document are inconsistent with the meanings of such terms under generally
accepted accounting principles, the definitions contained in this Agreement or
in any such certificate or other document shall control.

     (d) The words "hereof," "herein," and "hereunder" and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement. Article, Section, Schedule
and Exhibit references contained in this Agreement are references to Articles,
Sections, Schedules and Exhibits in or to this Agreement unless otherwise
specified. The term "including" shall mean "including without limitation."

                                       16

<PAGE>

          (e) The definitions contained in this Agreement are applicable to the
singular as well as the plural forms of such terms and to the masculine as well
as to the feminine and neuter genders of such terms.

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

                                   ARTICLE II
                                 TRUST PROPERTY

          SECTION 2.1 Conveyance of Trust Property.

          (a) In consideration of the Trust's delivery to, or upon the written
order of, the Depositor of authenticated Notes and Certificates, in authorized
denominations in aggregate principal amounts equal to the Initial Note Balance
and the Initial Certificate Balance, respectively, the Depositor hereby
irrevocably sells, transfers, assigns and otherwise conveys to the Trust,
without recourse (subject to the obligations herein), all right, title and
interest of the Depositor, whether now owned or hereafter acquired, in, to and
under the following:

              (i)     the Receivables;

              (ii)    all amounts received on or in respect of the Receivables
     after the Cutoff Date;

              (iii)   the security interests in the Financed Vehicles granted by
     the Obligors pursuant to the Receivables;

              (iv)    all proceeds from claims on or refunds of premiums with
     respect to physical damage, theft, credit life or credit disability
     insurance policies relating to the Financed Vehicles or the Obligors;

              (v)     the Receivable Files;

              (vi)    the Collection Account, the Note Payment Account, the
     Certificate Payment Account, and the Reserve Account and all amounts,
     securities, financial assets, investments and other property deposited in
     or credited to any of the foregoing and all proceeds thereof;

              (vii)   all rights of the Depositor under the Receivables Purchase
     Agreement, including the right to require the Seller to repurchase
     Receivables from the Depositor; and

              (viii)  all present and future claims, demands, causes of action
     and choses in action in respect of any or all of the foregoing and all
     payments on or under and all proceeds of every kind and nature whatsoever
     in respect of any or all of the foregoing,

                                       17

<PAGE>

     including all proceeds of the conversion thereof, voluntary or involuntary,
     into cash or other liquid property, all accounts, general intangibles,
     chattel paper, instruments, documents, money, investment property, deposit
     accounts, letters of credit, letter-of-credit rights, insurance proceeds,
     condemnation awards, rights to payment of any and every kind and other
     forms of obligations and all other property which at any time constitutes
     all or part of or is included in the proceeds of any of the foregoing.

          (b) The Depositor and the Trust intend that the transfer of the Trust
Property contemplated by Section 2.1(a) constitute a sale of the Trust Property,
conveying good title to the Trust Property, from the Depositor to the Trust. If
such transfer is deemed to be a pledge to secure the payment of the Notes and
the Certificates, however, the Depositor hereby grants to the Trust a first
priority security interest in all of the Depositor's right, title and interest
in, to and under the Trust Property, and all proceeds thereof, to secure the
payment of the Notes and the Certificates, and in such event, this Agreement
shall constitute a security agreement under applicable law.

          (c) The sale, transfer, assignment and conveyance of the Trust
Property made under Section 2.1(a) shall not constitute and is not intended to
result in an assumption by the Trust of any obligation of the Depositor or the
Seller to the Obligors or any other Person in connection with the Receivables
and the other Trust Property or any obligation of the Depositor or the Seller
under any agreement, document or instrument related thereto.

          SECTION 2.2 Representations and Warranties of the Seller as to the
Receivables.

          (a) The Seller has made, under the Receivables Purchase Agreement,
each of the representations and warranties as to the Receivables set forth in
Exhibit A to this Agreement. The Trust shall be deemed to have relied on such
representations and warranties in accepting the Receivables. The representations
and warranties set forth in Exhibit A to this Agreement speak as of the
execution and delivery of this Agreement, except to the extent otherwise
provided, but shall survive the sale, transfer, assignment and conveyance of the
Receivables to the Trust pursuant to this Agreement and the pledge of the
Receivables to the Indenture Trustee pursuant to the Indenture. Pursuant to
Section 2.1(a) of this Agreement, the Depositor has sold, transferred, assigned
and otherwise conveyed to the Trust, as part of the Trust Property, its rights
under the Receivables Purchase Agreement, including its right to require the
Seller to repurchase Receivables in accordance with the Receivables Purchase
Agreement upon a breach of the representations and warranties set forth in
Exhibit A to this Agreement.

          (b) The Seller hereby agrees that the Trust shall have the right to
enforce any and all rights under the Receivables Purchase Agreement assigned to
the Trust under this Agreement, including the right to require the Seller to
repurchase Receivables in accordance with the Receivables Purchase Agreement
upon a breach of the representations and warranties set forth in Exhibit A to
this Agreement, directly against the Seller as though the Trust were a party to
the Receivables Purchase Agreement and that the Trust shall not be obligated to
enforce any such right indirectly through the Depositor.

                                       18

<PAGE>

     SECTION 2.3 Representations and Warranties of the Depositor as to the
Receivables. The Depositor makes the following representations and warranties as
to the Receivables on which the Trust shall be deemed to have relied in
accepting the Receivables. The representations and warranties speak as of the
execution and delivery of this Agreement, except to the extent otherwise
provided, but shall survive the sale, transfer, assignment and conveyance of the
Receivables to the Trust pursuant to this Agreement and the pledge of the
Receivables to the Indenture Trustee pursuant to the Indenture.

     (a) Title. The Depositor has purchased the Receivables from the Seller. The
Depositor intends that the transfer of the Receivables contemplated by Section
2.1(a) constitute a sale of the Receivables from the Depositor to the Trust and
that the beneficial interest in, and title to, the Receivables not be part of
the Depositor's estate in the event of the filing of a bankruptcy petition by or
against the Depositor under any bankruptcy law. The Depositor has not sold,
transferred, assigned or pledged any Receivable to any Person other than the
Trust. The Depositor has not created, incurred or suffered to exist any Lien,
encumbrance or security interest on any Receivable except for the Lien of the
Indenture.

     (b) Security Interest Matters. This Agreement creates a valid and
continuing "security interest" (as defined in the Relevant UCC) in the
Receivables in favor of the Trust, which security interest is prior to all other
Liens and is enforceable as such as against creditors of and purchasers from the
Depositor. The Receivables constitute "tangible chattel paper" (as defined in
the Relevant UCC). The Depositor owns and has good and marketable title to the
Receivables free and clear of any Lien, claim or encumbrance of any Person. The
Depositor has caused or will cause prior to the Closing Date the filing of all
appropriate financing statements in the proper filing offices in the appropriate
jurisdictions under applicable law necessary to perfect the security interest in
the Receivables granted to the Trust under this Agreement. Other than the
security interest granted to the Trust under this Agreement, the Depositor has
not pledged, assigned, sold, granted a security interest in or otherwise
conveyed any of the Receivables. The Depositor has not authorized the filing of
and is not aware of any financing statements against the Depositor that include
a description of collateral covering the Receivables other than any financing
statement relating to the security interest granted to the Trust under this
Agreement or that has been terminated. The Depositor is not aware of any
judgment or tax lien filings against the Depositor. The security interest of the
Seller in each Financed Vehicle has been validly assigned by the Depositor to
the Trust.

     (c) Financing Statements. All financing statements filed or to be filed
against the Depositor in favor of the Indenture Trustee (as assignee of the
Trust) contain a statement substantially to the following effect: "A purchase of
or security interest in any collateral described in this financing statement
will violate the rights of the Indenture Trustee."

     (d) No Transfer Restrictions. The Depositor has not created, incurred or
suffered to exist any restriction on transferability of the Receivables except
for the restrictions on transferability imposed by this Agreement. The transfer
of the Receivables and the Receivable Files by the Depositor to the Trust
pursuant to this Agreement is not subject to the bulk transfer laws or any
similar statutory provisions in effect in any applicable jurisdiction.

                                       19

<PAGE>

          SECTION 2.4 Repurchase by Seller upon Breach. The Depositor, the
Seller, the Servicer or the Owner Trustee, as the case may be, shall inform the
other parties to this Agreement, the Indenture Trustee and the Insurer promptly,
in writing, upon the discovery of any breach or failure to be true of the
representations and warranties set forth in Exhibit A to this Agreement. If such
breach or failure shall not have been cured by the close of business on the last
day of the Collection Period which includes the thirtieth (30th) day after the
date on which the Seller becomes aware of, or receives written notice from the
Depositor, the Servicer, the Owner Trustee or the Insurer of, such breach or
failure, and such breach or failure materially and adversely affects the
interest of the Trust in a Receivable, the Seller shall repurchase such
Receivable from the Trust on the Distribution Date immediately following such
Collection Period. In consideration of the repurchase of a Receivable hereunder,
the Seller shall remit the Purchase Amount of such Receivable in the manner
specified in Section 4.5. The sole remedy of the Trust, the Owner Trustee, the
Indenture Trustee, the Noteholders, the Certificateholders and the Insurer with
respect to a breach or failure to be true of the representations and warranties
set forth in Exhibit A to this Agreement shall be to require the Seller to
repurchase Receivables pursuant to this Section 2.4 or Section 3.02(g) of the
Receivables Purchase Agreement. Neither the Owner Trustee nor the Indenture
Trustee shall have any duty to conduct an affirmative investigation as to the
occurrence of any condition requiring the repurchase of any Receivable pursuant
to this Section 2.4 or the eligibility of any Receivable for purposes of this
Agreement.

          SECTION 2.7 Custody of Receivable Files. To assure uniform quality in
servicing the Receivables and to reduce administrative costs, the Trust, upon
the execution and delivery of this Agreement, hereby revocably appoints the
Servicer as its agent, and the Servicer hereby accepts such appointment, to act
as custodian on behalf of the Trust and the Indenture Trustee of the following
documents or instruments, which are hereby constructively delivered to the
Indenture Trustee, as pledgee of the Trust pursuant to the Indenture with
respect to each Receivable (collectively, a "Receivable File"):

          (i)    the original, executed copy of such Receivable;

          (ii)   the original credit application with respect to such Receivable
     fully executed by the related Obligor or a photocopy thereof or a record
     thereof on a computer file or disc or on microfiche;

          (iii)  the original certificate of title for the related Financed
     Vehicle or such other documents that the Seller or the Servicer shall keep
     on file, in accordance with its customary practices and procedures,
     evidencing the security interest of the Seller in such Financed Vehicle;

          (iv)   documents evidencing the commitment of the related Obligor to
     maintain physical damage insurance covering the related Financed Vehicle;
     and

          (v)    any and all other documents (including any computer file or
     disc or microfiche) that the Seller or the Servicer shall keep on file, in
     accordance with its customary practices and procedures, relating to such
     Receivable, the related Obligor or the related Financed Vehicle.

                                       20

<PAGE>

                  On the Closing Date, the Servicer shall deliver to the Trust
and the Indenture Trustee an Officer's Certificate confirming that the Servicer
has received, on behalf of the Trust and the Indenture Trustee, all the
documents and instruments necessary for the Servicer to act as the agent of the
Trust and the Indenture Trustee for the purposes set forth in this Section 2.5,
including the documents referred to herein, and the Trust, the Owner Trustee and
the Indenture Trustee are hereby authorized to rely on such Officer's
Certificate. In addition, within 180 days after the Closing Date, the Servicer
shall deliver to the Trust, the Indenture Trustee and the Insurer an Officer's
Certificate identifying each outstanding Receivable secured by a Financed
Vehicle for which the Servicer has not received the original certificate of
title (and indicating whether such Financed Vehicle is subject to a certificate
of title statute or motor vehicle registration law that requires that the
original certificate of title for such Financed Vehicle be delivered to the
Seller).

                  Section 2.6  Duties of Servicer as Custodian.

                  (a) Safekeeping. The Servicer, in its capacity as custodian,
shall hold the Receivable Files for the benefit of the Trust and the Indenture
Trustee and maintain such accurate and complete accounts, records and computer
systems pertaining to each Receivable File as shall enable the Servicer and the
Trust to comply with the terms and provisions of this Agreement and the
Indenture Trustee to comply with the terms and conditions of the Indenture. In
performing its duties as custodian, the Servicer shall act with reasonable care,
using that degree of skill and attention that the Servicer exercises with
respect to the files relating to comparable motor vehicle retail installment
sale contracts that the Servicer services for itself or others. The Servicer
shall conduct, or cause to be conducted, in accordance with its customary
practices and procedures, periodic audits of the Receivable Files held by it
under this Agreement, and of the related accounts, records and computer systems,
in such a manner as shall enable the Trust or the Indenture Trustee to verify
the accuracy of the Servicer's record keeping. The Servicer shall promptly
report to the Owner Trustee, the Indenture Trustee and the Insurer any failure
on its part to hold the Receivable Files and maintain its accounts, records and
computer systems as herein provided and promptly take appropriate action to
remedy any such failure. Nothing herein shall be deemed to require an initial
review or any periodic review by the Trust, the Owner Trustee or the Indenture
Trustee of the Receivable Files, and none of the Trust, the Owner Trustee or the
Indenture Trustee shall be liable or responsible for any action or failure to
act by the Servicer in its capacity as custodian hereunder.

                  (b) Maintenance of and Access to Records. The Servicer shall
maintain each Receivable File at the location listed in Schedule 2 to this
Agreement or at such other location as shall be specified to the Trust, the
Insurer and the Indenture Trustee by written notice not later than ninety (90)
days after any change in location. The Servicer shall make available to the
Trust and the Indenture Trustee, or its duly authorized representatives,
attorneys or auditors, a list of locations of the Receivable Files, the
Receivable Files, and the related accounts, records, and computer systems
maintained by the Servicer, at such times as the Trust or the Indenture Trustee
shall instruct.

                  (c) Release of Documents.  As soon as practicable after
receiving written instructions from the Indenture Trustee, the Servicer shall
release any document in the

                                       21

<PAGE>

Receivable Files to the Indenture Trustee, the Indenture Trustee's agent or the
Indenture Trustee's designee, as the case may be, at such place as the Indenture
Trustee may reasonably designate.

                  (d) Title to Receivables. The Servicer shall not at any time
have or in any way attempt to assert any interest in any Receivable held by it
as custodian hereunder or in the related Receivable File other than for
collecting or enforcing such Receivable for the benefit of the Trust. The entire
equitable interest in such Receivable and the related Receivable File shall at
all times be vested in the Trust.

                  SECTION 2.7 Instructions; Authority to Act. The Servicer shall
be deemed to have received proper instructions with respect to the Receivable
Files upon its receipt of written instructions signed by an Authorized Officer.
A certified copy of excerpts of authorizing resolutions of the Board of
Directors of the Indenture Trustee shall constitute conclusive evidence of the
authority of any such Authorized Officer to act and shall be considered in full
force and effect until receipt by the Servicer of written notice to the contrary
given by the Indenture Trustee.

                  SECTION 2.8 Indemnification of the Custodian. The Servicer, in
its capacity as custodian, shall indemnify and hold harmless the Trust, the
Owner Trustee and the Indenture Trustee and each of their respective officers,
directors, employees and agents from and against any and all liabilities,
obligations, losses, compensatory damages, payments, costs or expenses
(including legal fees if any) of any kind whatsoever that may be imposed on,
incurred or asserted against the Trust, the Owner Trustee or the Indenture
Trustee or any of their respective officers, directors, employees and agents as
the result of any act or omission by the Servicer relating to the maintenance
and custody of the Receivable Files; provided, however, that the Servicer shall
not be liable hereunder to the Owner Trustee to the extent that such
liabilities, obligations, losses, compensatory damages, payments, costs or
expenses result from the willful misfeasance, bad faith or negligence of the
Owner Trustee and shall not be liable hereunder to the Indenture Trustee to the
extent that such liabilities, obligations, losses, compensatory damages,
payments, costs or expenses result from the willful misfeasance, bad faith or
negligence of the Indenture Trustee.

                  SECTION 2.9 Effective Period and Termination. The Servicer's
appointment as custodian shall become effective as of the Cutoff Date and shall
continue in full force and effect until terminated pursuant to this Section 2.9.
If the Servicer shall resign as Servicer under Section 7.6, or if all of the
rights and obligations of the Servicer shall have been terminated under Section
8.1, the appointment of the Servicer as custodian hereunder may be terminated
(i) by the Trust, with the consent of the Indenture Trustee and the Insurer,
(ii) by the Holders of Notes evidencing not less than 25% of the Note Balance
or, if the Notes have been paid in full, by the Holders of Certificates
evidencing not less than 25% of the Certificate Balance, (iii) by the Owner
Trustee, with the consent of the Holders of Notes evidencing not less than 25%
of the Note Balance or (iv) by the Insurer, in each case by notice then given in
writing to the Depositor, the Servicer and the Insurer (with a copy to the
Indenture Trustee and the Owner Trustee if given by the Noteholders or the
Certificateholders). As soon as practicable after any termination of such
appointment, the Servicer shall deliver, or cause to be delivered, the
Receivable Files and the related accounts and records maintained by the Servicer
to the Indenture Trustee, the Indenture Trustee's agent or the Indenture
Trustee's designee, as the case may be, at

                                       22

<PAGE>

such place as the Indenture Trustee may reasonably designate or, if the Notes
have been paid in full, at such place as the Owner Trustee may reasonably
designate.

                                  ARTICLE III
                 ADMINISTRATION AND SERVICING OF RECEIVABLES AND
                              OTHER TRUST PROPERTY

                  SECTION 3.1 Duties of Servicer. The Servicer shall administer
the Receivables with reasonable care. The Servicer's duties shall include, but
not be limited to, the collection and posting of all payments, responding to
inquiries by Obligors on the Receivables, or by federal, state or local
governmental authorities, investigating delinquencies, reporting tax information
to Obligors, furnishing monthly and annual statements to the Owner Trustee and
the Indenture Trustee with respect to distributions and providing collection and
repossession services in the event of Obligor default. In performing its duties
as Servicer hereunder, the Servicer shall use reasonable care and exercise that
degree of skill and attention that the Servicer exercises with respect to all
comparable motor vehicle retail installment sale contracts that it services for
itself or others. Subject to the foregoing and to Section 3.2, the Servicer
shall follow its customary standards, policies, practices and procedures in
performing its duties hereunder as Servicer. Without limiting the generality of
the foregoing, the Servicer is hereby authorized and empowered to execute and
deliver, on behalf of itself, the Depositor, the Trust, the Owner Trustee, the
Indenture Trustee, the Certificateholders, the Noteholders or any one or more of
them, any and all instruments of satisfaction or cancellation, or of partial or
full release or discharge, and all other comparable instruments, with respect to
the Receivables or the Financed Vehicles, all in accordance with this Agreement;
provided, however, that, notwithstanding the foregoing, the Servicer shall not,
except pursuant to an order from a court of competent jurisdiction, release an
Obligor from payment of any unpaid amount under any Receivable or waive the
right to collect the unpaid balance (including accrued interest) of any
Receivable from the related Obligor, except in connection with a de minimis
deficiency which the Servicer would not attempt to collect in accordance with
its customary procedures, in which event the Servicer shall indemnify the Trust
for such deficiency. If the Servicer shall commence a legal proceeding to
enforce a Receivable, the Owner Trustee shall thereupon be deemed to have
automatically assigned such Receivable to the Servicer, which assignment shall
be solely for purposes of collection. If in any enforcement suit or legal
proceeding it shall be held that the Servicer may not enforce a Receivable on
the ground that it shall not be a real party in interest or a holder entitled to
enforce such Receivable, the Owner Trustee shall, at the Servicer's expense and
written direction, take steps to enforce such Receivable, including bringing
suit in its name or the names of the Indenture Trustee, the Certificateholders,
the Noteholders or any of them. The Owner Trustee shall execute and deliver to
the Servicer any powers of attorney and other documents as shall be prepared by
the Servicer and reasonably necessary or appropriate to enable the Servicer to
carry out its servicing and administrative duties hereunder. The Servicer, at
its expense, shall obtain on behalf of the Trust or the Owner Trustee all
licenses, if any, required by the laws of any jurisdiction to be held by the
Trust or the Owner Trustee in connection with ownership of the Receivables and
shall make all filings and pay all fees as may be required in connection
therewith during the term hereof.

                  Section 3.2 Collection and Allocation of Receivable Payments.
The Servicer shall make reasonable efforts to collect all payments called for
under the terms and

                                       23

<PAGE>

provisions of the Receivables as and when the same shall become due and
otherwise act with respect to the Receivables and the other Trust Property in
such manner as will, in the reasonable judgment of the Servicer, maximize the
amount to be received by the Trust with respect thereto and in accordance with
the standard of care required by Section 3.1. The Servicer shall allocate
collections on or in respect of the Receivables between principal and interest
in accordance with the customary servicing practices and procedures it follows
with respect to all comparable motor vehicle retail installment sale contracts
that it services for itself or others. The Servicer shall not increase or
decrease the number or amount of any Scheduled Payment, the Amount Financed
under any Receivable or the APR of any Receivable, or extend, rewrite or
otherwise modify the payment terms of any Receivable; provided, however, that
the Servicer may extend the due date for one or more payments due on any
Receivable for credit-related reasons that would be acceptable to the Servicer
with respect to comparable motor vehicle retail installment sale contracts that
it services for itself or others and in accordance with its customary standards,
policies, practices and procedures if the cumulative extensions with respect to
any Receivable shall not cause the term of such Receivable to extend beyond the
Final Scheduled Maturity Date. If the Servicer fails to comply with the
provisions of the preceding sentence, the Servicer shall be required to purchase
each Receivable affected thereby for the related Purchase Amount, in the manner
specified in Section 3.7, as of the close of the Collection Period during which
such failure occurs. The Servicer may, in its discretion (but only in accordance
with its customary standards, policies, practices and procedures), waive any
late payment charge or any other fee that may be collected in the ordinary
course of servicing a Receivable.

                  SECTION 3.3 Realization upon Receivables. The Servicer shall
use reasonable efforts on behalf of the Trust, in accordance with the standard
of care required under Section 3.1, to repossess or otherwise convert the
ownership of each Financed Vehicle securing a Defaulted Receivable. In taking
such action, the Servicer shall follow such customary practices and procedures
as it shall deem necessary or advisable in its servicing of comparable motor
vehicle retail installment sale contracts and as are otherwise consistent with
the standard of care required under Section 3.1. The Servicer shall be entitled
to recover all reasonable expenses incurred by it in the course of repossessing
and liquidating a Financed Vehicle into cash proceeds, but only out of the cash
proceeds of such Financed Vehicle and any deficiency obtained from the related
Obligor. If a Financed Vehicle shall have suffered damage, the Servicer shall
not expend funds in connection with the repair or the repossession of such
Financed Vehicle unless it shall determine in its discretion that such repair
and/or repossession will increase the Liquidation Proceeds received with respect
to the related Receivable.

                  SECTION 3.4 Physical Damage Insurance. The Servicer shall
follow its customary practices and procedures to determine whether or not each
Obligor shall have maintained physical damage insurance covering the related
Financed Vehicle.

                  SECTION 3.5 Maintenance of Security Interests in Financed
Vehicles. The Servicer shall take such steps, in accordance with the standard of
care required under Section 3.1, as are necessary to maintain perfection of the
security interest created by each Receivable in the related Financed Vehicle.
The Trust hereby authorizes the Servicer, and the Servicer hereby agrees, to
take such steps as are necessary to re-perfect such security interest on behalf
of the Trust and the Indenture Trustee in the event the Servicer receives notice
of, or otherwise has actual knowledge of, the fact that such security interest
is not perfected as a result of the

                                       24

<PAGE>

relocation of a Financed Vehicle or for any other reason. The Servicer shall not
release, in whole or in part, any security interest in a Financed Vehicle
created by the related Receivable except as permitted herein or in accordance
with its customary standards, policies, practices and procedures.

             SECTION 3.6 Amendment of Receivable Terms. The Servicer shall not
impair in any material respect the rights of the Depositor, the Trust, the Owner
Trustee, the Indenture Trustee, the Certificateholders, the Noteholders or the
Insurer in the Receivables or, except as permitted under Section 3.2, otherwise
amend or alter the terms of the Receivables if, as a result of such amendment or
alteration, the interests of the Depositor, the Trust, the Owner Trustee, the
Indenture Trustee, the Certificateholders, the Noteholders or the Insurer
hereunder would be materially adversely affected.

             SECTION 3.7 Purchase by Servicer upon Breach. The Depositor, the
Seller, the Servicer or the Owner Trustee, as the case may be, shall inform the
other parties to this Agreement, the Indenture Trustee and the Insurer promptly,
in writing, upon the discovery of any breach of Section 3.2, 3.5 or 3.6. If such
breach shall not have been cured by the close of business on the last day of the
Collection Period which includes the thirtieth (30th) day after the date on
which the Servicer becomes aware of, or receives written notice from the
Depositor, the Seller, the Owner Trustee or the Insurer of, such breach, and
such breach materially and adversely affects the interest of the Trust in a
Receivable, the Servicer shall purchase such Receivable from the Trust on the
Distribution Date following such Collection Period; provided, however, that,
with respect to a breach of Section 3.2, the Servicer shall purchase the
affected Receivable from the Trust at the end of the Collection Period in which
such breach occurs. In consideration of the purchase of a Receivable hereunder,
the Servicer shall remit the Purchase Amount of such Receivable in the manner
specified in Section 4.5. The sole remedy of the Trust, the Owner Trustee, the
Indenture Trustee, the Noteholders and the Certificateholders with respect to a
breach of Section 3.2, 3.5 or 3.6 shall be to require the Servicer to purchase
Receivables pursuant to this Section 3.7. Neither the Owner Trustee nor the
Indenture Trustee shall have any duty to conduct an affirmative investigation as
to the occurrence of any condition requiring the purchase of any Receivable
pursuant to this Section 3.7.

             SECTION 3.8 Servicing Compensation. The Servicer shall receive the
Monthly Servicing Fee for servicing the Receivables. The Monthly Servicing Fee
for any Collection Period shall equal the product of one-twelfth (1/12) of the
Servicing Rate and the Pool Balance as of the first day of such Collection
Period (or, in the case of the initial Collection Period, as of the Cutoff
Date). The Servicer shall pay all expenses incurred by it in connection with its
activities hereunder (including the fees and expenses of the Owner Trustee and
the Indenture Trustee, including the reasonable fees and expenses of their
attorneys, and any custodian appointed by the Owner Trustee and the Indenture
Trustee, the fees and expenses of independent accountants, taxes imposed on the
Servicer and expenses incurred in connection with distributions and reports to
the Certificateholders and the Noteholders), except expenses incurred in
connection with realizing upon Receivables under Section 3.3.

             SECTION 3.9 Servicer's Certificate. On or before the Determination
Date immediately preceding each Distribution Date, the Servicer shall deliver to
the Depositor, the Seller, the Owner Trustee, the Indenture Trustee, the Insurer
and each Paying Agent, with a copy

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<PAGE>

to the Rating Agencies, a certificate of a Servicing Officer substantially in
the form of Exhibit B to this Agreement (a "Servicer's Certificate") and
attached to a Servicer's report containing all information necessary to make the
transfers and distributions pursuant to Sections 4.5, 4.6 and 4.7, together with
the written statements to be furnished by the Owner Trustee to the
Certificateholders pursuant to Section 4.9 and by the Indenture Trustee to the
Noteholders pursuant to Section 4.9 and pursuant to Section 6.6 of the
Indenture. The Servicer shall separately identify (by account number) in a
written notice to the Depositor, the Owner Trustee, the Indenture Trustee and
the Insurer the Receivables to be repurchased by the Seller or to be purchased
by the Servicer, as the case may be, on the Business Day preceding such
Distribution Date, and, upon request of one of the foregoing parties, each
Receivable which became a Defaulted Receivable during the related Collection
Period. The Servicer shall deliver to the Rating Agencies any information, to
the extent it is available to the Servicer, that the Rating Agencies reasonably
request in order to monitor the Trust.

             SECTION 3.10 Annual Statement as to Compliance; Notice of Event of
Servicing Termination.

             (a) On or before May 31 of each year (commencing with the year
2003), the Servicer shall deliver to the Depositor, the Owner Trustee, the
Indenture Trustee and the Insurer an Officer's Certificate stating, as to the
officer signing such Officer's Certificate, that:

                  (i)      a review of the activities of the Servicer during the
     preceding Fiscal Year (or, in the case of the Officer's Certificate to be
     delivered in the year 2003, during the period beginning on the Closing Date
     and ending on February 28, 2003) and of its performance under this
     Agreement has been made under such officer's supervision; and

                  (ii)     to the best of such officer's knowledge, based on
     such review, the Servicer has fulfilled all its obligations under this
     Agreement throughout such Fiscal Year (or, in the case of the Officer's
     Certificate to be delivered in the year 2003, such period) or, if there has
     been a default in the fulfillment of any such obligation, specifying each
     such default known to such officer and the nature and status thereof.

             A copy of such certificate may be obtained by any Certificateholder
by a request in writing to the Owner Trustee, or by any Noteholder or Person
certifying that it is a Note Owner by a request in writing to the Indenture
Trustee, in either case addressed to the applicable Corporate Trust Office. Upon
the written request of the Owner Trustee, the Indenture Trustee shall promptly
furnish the Owner Trustee a list of Noteholders as of the date specified by the
Owner Trustee.

             (b) The Servicer shall deliver to the Depositor, the Owner Trustee,
the Indenture Trustee, the Insurer and the Rating Agencies, promptly after
having obtained knowledge thereof, but in no event later than five (5) Business
Days thereafter, an Officer's Certificate specifying any event which constitutes
or, with the giving of notice or lapse of time or both, would become an Event of
Servicing Termination.

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<PAGE>

             SECTION 3.11 Annual Independent Certified Public Accountants'
Reports. On or before May 31 of each year (commencing with the year 2003), the
Servicer shall cause a firm of independent certified public accountants (who may
also render other services to the Servicer or its Affiliates) to deliver to the
Depositor, the Owner Trustee, the Indenture Trustee and the Insurer a report
addressed to the Board of Directors of the Servicer with respect to the
preceding Fiscal Year (or, in the case of the report to be delivered in the year
2003, with respect to the period beginning on the Closing Date and ending on
February 28, 2003) to the effect that (i) such firm has audited the financial
statements of the Servicer and issued its report thereon, (ii) such firm has
audited the reports delivered by the Servicer pursuant to Section 3.9 and the
records relating to the servicing of the Receivables and the distributions on
the Notes and the Certificates under this Agreement, (iii) such audit was made
in accordance with generally accepted auditing standards and (iv) except as
described in the report, such audit disclosed no exceptions or errors in the
records relating to motor vehicle loans serviced for others. Such report shall
also indicate that the firm is independent with respect to the Depositor, the
Seller and the Servicer within the meaning of the Code of Professional Ethics of
the American Institute of Certified Public Accountants. A copy of such report
may be obtained by any Certificateholder by a request in writing to the Owner
Trustee, or by any Noteholder or Person certifying that it is a Note Owner by a
request in writing to the Indenture Trustee, in either case addressed to the
applicable Corporate Trust Office. In the event such firm requires the Indenture
Trustee to agree to the procedures performed by such firm, the Servicer shall
direct the Indenture Trustee in writing to so agree, it being understood and
agreed that the Indenture Trustee will deliver such letter of agreement in
conclusive reliance upon the direction of the Servicer, and the Indenture
Trustee makes no independent inquiry or investigation as to, and shall have no
obligation or liability in respect of, the sufficiency, validity or correctness
of such procedures.

             SECTION 3.12 Access to Certain Documentation and Information
Regarding Receivables. The Servicer shall provide the Depositor, the Owner
Trustee, the Indenture Trustee, the Certificateholders, the Noteholders and the
Insurer with access to the Receivable Files in the cases where the Depositor,
the Owner Trustee, the Indenture Trustee, the Certificateholders, the
Noteholders or the Insurer shall be required by applicable statutes or
regulations to have access to such documentation. Such access shall be afforded
without charge, but only upon reasonable request and during normal business
hours at the offices of the Servicer. Nothing in this Section 3.12 shall affect
the obligation of the Servicer to observe any applicable law prohibiting
disclosure of information regarding the Obligors, and the failure of the
Servicer to provide access to information as a result of such obligation shall
not constitute a breach of this Section 3.12. Each Certificateholder or
Noteholder, by its acceptance of a Certificate or Note, as the case may be, and
the Insurer shall be deemed to have agreed to keep any information obtained by
it pursuant to this Section 3.12 confidential, except as may be required by
applicable law.

             SECTION 3.13 Reports to the Commission. The Servicer shall, on
behalf of the Trust, cause to be filed with the Commission any periodic reports
required to be filed under the provisions of the Exchange Act, and the rules and
regulations of the Commission thereunder. The Depositor shall, at its expense,
cooperate in any reasonable request made by the Servicer in connection with such
filings. The Servicer shall provide or cause to be provided to the Depositor
copies of all documents filed by the Servicer after the Closing Date with the
Commission

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<PAGE>

pursuant to the Securities Act of 1933, as amended, or the Securities Act of
1934, as amended, that relate specifically to the Trust, the Notes or the
Certificates.

             SECTION 3.14 Reports to Rating Agencies. The Servicer shall deliver
to each Rating Agency, at such address as such Rating Agency may request, a copy
of all reports or notices furnished or delivered pursuant to this Article III
and a copy of any amendments, supplements or modifications to this Agreement and
any other information reasonably requested by such Rating Agency to monitor this
transaction.

                                   ARTICLE IV
                  DISTRIBUTIONS; RESERVE ACCOUNT; STATEMENTS TO
                       NOTEHOLDERS AND CERTIFICATEHOLDERS

             SECTION 4.1 Accounts.

             (a) The Servicer shall establish, on or before the Closing Date,
and maintain in the name of the Indenture Trustee at an Eligible Institution
(which shall initially be the Indenture Trustee) a segregated trust account
designated as the Collection Account (the "Collection Account"). The Collection
Account shall be held in trust for the benefit of the Insurer, the Noteholders
and the Certificateholders. The Collection Account shall be under the sole
dominion and control of the Indenture Trustee; provided, however, that the
Servicer may make deposits to and direct the Indenture Trustee in writing to
make withdrawals from the Collection Account in accordance with this Agreement,
the Indenture and the Trust Agreement. All monies deposited from time to time in
the Collection Account pursuant to this Agreement shall be held by the Indenture
Trustee as part of the Trust Property and shall be applied as provided in this
Agreement. All deposits to and withdrawals from the Collection Account shall be
made only upon the terms and conditions of the Transaction Documents.

             If the Servicer is required to remit collections on a daily basis
pursuant to the first sentence of Section 4.2, all amounts held in the
Collection Account shall, to the extent permitted by applicable law, rules and
regulations, be invested, as directed in writing by the Servicer, by the bank or
trust company then maintaining the Collection Account in Permitted Investments
that mature not later than the Business Day preceding the Distribution Date
following the Collection Period to which such amounts relate. All such Permitted
Investments shall be held to maturity. If the Collection Account is no longer to
be maintained at the Indenture Trustee, the Servicer shall, with the Indenture
Trustee's assistance as necessary, promptly (and in any case within ten (10)
calendar days or such longer period not to exceed thirty (30) calendar days as
to which each Rating Agency may consent) cause the Collection Account to be
moved to an Eligible Institution. The Servicer shall promptly notify the
Indenture Trustee and the Owner Trustee of any change in the account number or
location of the Collection Account.

             (b) The Servicer shall establish, on or before the Closing Date,
and maintain in the name of the Indenture Trustee at an Eligible Institution
(which shall initially be the Indenture Trustee) a segregated trust account
designated as the Note Payment Account (the "Note Payment Account"). The Note
Payment Account shall be held in trust for the benefit of the Noteholders. The
Note Payment Account shall be under the sole dominion and control of the
Indenture Trustee; provided, however, that the Servicer may make deposits to and
direct the

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<PAGE>

Indenture Trustee in writing to make withdrawals from the Note Payment Account
in accordance with this Agreement and the Indenture. All monies deposited from
time to time in the Note Payment Account pursuant to this Agreement and the
Indenture shall be held by the Indenture Trustee as part of the Trust Property
and shall be applied as provided in this Agreement and the Indenture. The
amounts on deposit in the Note Payment Account shall not be invested. If the
Note Payment Account is no longer to be maintained at the Indenture Trustee, the
Servicer shall, with the Indenture Trustee's assistance as necessary, promptly
(and in any case within ten (10) calendar days or such longer period not to
exceed thirty (30) calendar days as to which each Rating Agency may consent)
cause the Note Payment Account to be moved to an Eligible Institution. The
Servicer shall promptly notify the Indenture Trustee and the Owner Trustee of
any change in the account number or location of the Note Payment Account.

            (c) The Servicer shall establish, on or before the Closing Date, and
maintain in the name of the Owner Trustee at an Eligible Institution (which
shall initially be the Owner Trustee) a segregated trust account designated as
the "CarMax Auto Owner Trust 2002-1 Trust Account" (the "Certificate Payment
Account"). The Certificate Payment Account shall be held in trust for the
benefit of the Certificateholders. The Certificate Payment Account shall be
under the sole dominion and control of the Owner Trustee; provided, however,
that the Servicer may direct the Indenture Trustee in writing to make deposits
to the Certificate Payment Account in accordance with this Agreement and the
Indenture and may direct the Owner Trustee to make withdrawals from the
Certificate Payment Account in accordance with this Agreement and the Trust
Agreement. All monies deposited from time to time in the Certificate Payment
Account pursuant to this Agreement and the Indenture shall be held by the Owner
Trustee as part of the Trust Property and shall be applied as provided in this
Agreement and the Trust Agreement. The amounts on deposit in the Certificate
Payment Account shall not be invested. If the Certificate Payment Account is no
longer to be maintained at the Owner Trustee, the Servicer shall, with the Owner
Trustee's assistance as necessary, promptly (and in any case within ten (10)
calendar days or such longer period not to exceed thirty (30) calendar days as
to which each Rating Agency may consent) cause the Certificate Payment Account
to be moved to an Eligible Institution. The Servicer shall promptly notify the
Indenture Trustee and the Owner Trustee in writing of any change in the account
number or location of the Certificate Payment Account.

            SECTION 4.2 Collections. The Servicer shall remit to the Collection
Account all amounts received by the Servicer on or in respect of the Receivables
(including Liquidation Proceeds and all amounts received by the Servicer in
connection with the repossession and sale of a Financed Vehicle (whether or not
the related Receivable has been classified as a Defaulted Receivable) but
excluding payments with respect to Purchased Receivables) as soon as practicable
and in no event after the close of business on the second Business day after
such receipt; provided, however, that for so long as (i) CarMax is the Servicer,
(ii) no Event of Servicing Termination shall have occurred and be continuing and
(iii) the Rating Agency Condition shall have been satisfied and, unless an
Insurer Default shall have occurred and be continuing, the written consent of
the Insurer shall have been obtained (each, a "Monthly Remittance Condition"),
the Servicer may remit any such amounts received during any Collection Period to
the Collection Account in immediately available funds on the Business Day
preceding the Distribution Date following such Collection Period (it being
understood that the Monthly Remittance Condition has not been satisfied as of
the Closing Date). The Owner Trustee and the Indenture Trustee shall not be
deemed to have knowledge of any event or

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<PAGE>

circumstance under clause (ii) or (iii) of the definition of Monthly Remittance
Condition that would require daily remittance by the Servicer to the Collection
Account unless the Owner Trustee or the Indenture Trustee, as applicable, has
received notice of such event or circumstance from the Depositor or the Servicer
in an Officer's Certificate or written notice from the Insurer (if no Insurer
Default shall have occurred and be continuing), the Holders of Notes evidencing
not less than 25% of the Note Balance or from the Holders of Certificates
evidencing not less than 25% of the Certificate Balance or a Responsible Officer
of the Owner Trustee or the Indenture Trustee, as applicable, has actual
knowledge of such event or circumstance. The Servicer shall remit to the
Collection Account on the Closing Date all amounts received by the Servicer on
or in respect of the Receivables (including Liquidation Proceeds and all amounts
received by the Servicer in connection with the repossession and sale of a
Financed Vehicle (whether or not the related Receivable has been classified as a
Defaulted Receivable)) during the period from but excluding the Cutoff Date to
and including the second Business Day preceding the Closing Date.

            SECTION 4.3 Application of Collections. For purposes of this
Agreement, all amounts received on or in respect of a Receivable during any
Collection Period (including Liquidation Proceeds and all amounts received by
the Servicer in connection with the repossession and sale of a Financed Vehicle
(whether or not the related Receivable has been classified as a Defaulted
Receivable) but excluding payments with respect to Purchased Receivables) shall
be applied by the Servicer, as of the last day of such Collection Period, to
interest and principal on such Receivable in accordance with the Simple Interest
Method.

            SECTION 4.4 [RESERVED].

            SECTION 4.5 Additional Deposits. The Seller and the Servicer shall
deposit or cause to be deposited in the Collection Account the aggregate
Purchase Amount with respect to Purchased Receivables pursuant to Section 2.4,
3.7 or 9.1. All such deposits with respect to a Collection Period shall be made
in immediately available funds no later than 5:00 p.m., New York City time, on
the Business Day preceding the Distribution Date following such Collection
Period.

            SECTION 4.6 Determination Date Calculations; Application of
Available Funds.

            (a)      On each Determination Date, the Servicer shall calculate
the following amounts:

                     (i)      the Available Collections for the following
     Distribution Date;

                     (ii)     the Total Servicing Fee for the preceding
     Collection Period;

                     (iii)    the Total Note Interest for each class of Notes
     for the following Distribution Date;

                     (iv)     the Total Certificate Interest for the following
     Distribution Date;

                     (v)      the Monthly Note Principal for the following
     Distribution Date;

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<PAGE>

                  (vi)     the Monthly Certificate Principal for the following
     Distribution Date;

                  (vii)    the Insurance Premium for the following Distribution
     Date plus any overdue Insurance Premiums for previous Distribution Dates;

                  (viii)   the aggregate amount of any unreimbursed payments
     under the Policy, including any amount deposited by the Insurer pursuant to
     Section 5.2(d) or (e) of the Indenture, to the extent payable to the
     Insurer under the Insurance Agreement plus accrued interest on any
     unreimbursed payments under the Policy, including any amount deposited by
     the Insurer pursuant to Section 5.2(d) or (e) of the Indenture, at the rate
     provided in the Insurance Agreement plus any other amounts due the Insurer
     under the Insurance Agreement plus any unreimbursed Insurer Defense Costs;

                  (ix)     the sum of the amounts described in clauses (ii)
     through (vi) above (the "Required Payment Amount"); and

                  (x)      the sum of the amounts described in clauses (vii) and
     (viii) above (the "Insurance Payment Amount").

            (b)   On each Determination Date, the Servicer shall calculate the
following amounts:

                  (i)      the lesser of (A) the amount, if any, by which the
     sum of the Required Payment Amount for the following Distribution Date plus
     the Insurance Payment Amount for such Distribution Date exceeds the
     Available Collections for such Distribution Date and (B) the Reserve
     Account Amount for such Distribution Date (before giving effect to any
     deposits to or withdrawals from the Reserve Account on such Distribution
     Date) (such lesser amount, the "Reserve Account Draw Amount");

                  (ii)     the amount, if any, by which the Required Payment
     Amount for the following Distribution Date exceeds the sum of the Available
     Collections for such Distribution Date plus the Reserve Account Draw Amount
     for such Distribution Date (such amount, the "Policy Claim Amount");

                  (iii)    the Reserve Account Amount for the following
     Distribution Date (after giving effect to the withdrawal of the Reserve
     Account Draw Amount for such Distribution Date); and

                  (iv)     the amount, if any, by which the Required Reserve
     Account Amount for the following Distribution Date exceeds the Reserve
     Account Amount for such Distribution Date (after giving effect to the
     withdrawal of the Reserve Account Draw Amount for such Distribution Date)
     (such excess, the "Reserve Account Deficiency").

            On each Distribution Date, the Servicer shall instruct the
Indenture Trustee to transfer the Reserve Account Draw Amount, if any, for such
Distribution Date from the Reserve Account to the Collection Account; provided,
however, that, if the Notes have been declared

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<PAGE>

immediately due and payable following an Event of Default (as defined in the
Indenture), the Servicer shall instruct the Indenture Trustee to transfer
directly to the Insurer the portion, if any, of such Reserve Account Draw Amount
payable in respect of the Insurance Payment Amount.

            (c) If the Servicer determines on any Determination Date that the
Available Collections for the following Distribution Date and the Reserve
Account Draw Amount for such Distribution Date will be insufficient to pay in
full the Required Payment Amount for such Distribution Date, the Servicer shall
deliver to the Indenture Trustee, with a copy to the Insurer, the Owner Trustee
and the Fiscal Agent, no later than 2:00 p.m., New York City time, on such
Determination Date, a written notice specifying the Policy Claim Amount for such
Distribution Date. The Indenture Trustee shall, no later than 12:00 p.m., New
York City time, on the second Business Day prior to such Distribution Date, make
a claim under the Policy for such Policy Claim Amount by delivering to the
Insurer and the Fiscal Agent, with a copy to the Depositor and the Servicer, a
Notice for Payment (as defined in and attached as Exhibit A to the Policy) for
such Policy Claim Amount. In making any such claim, the Indenture Trustee shall
act on behalf of the Noteholders and the Certificateholders and shall comply
with all the terms and conditions of the Policy. The Indenture Trustee shall,
upon receipt, deposit such Policy Claim Amount in the Collection Account.

            (d) On each Distribution Date, the Servicer shall instruct the
Indenture Trustee in writing to apply the Available Funds for such Distribution
Date to make the following payments and deposits in the following order of
priority:

                (i)     to the Servicer, the Total Servicing Fee for the
     preceding Collection Period;

                (ii)    to the Note Payment Account, the Total Note Interest for
     such Distribution Date;

                (iii)   if the Notes have not been declared immediately due and
     payable following an Event of Default (as defined in the Indenture), to the
     Certificate Payment Account, the Total Certificate Interest for such
     Distribution Date (which payment shall be made no later than 12:00 p.m.,
     New York City time, on such Distribution Date);

                (iv)    to the Note Payment Account, the Monthly Note Principal
     for such Distribution Date;

                (v)     if the Notes have been declared immediately due and
     payable following an Event of Default (as defined in the Indenture), to the
     Certificate Payment Account, the Total Certificate Interest for such
     Distribution Date (which payment shall be made no later than 12:00 p.m.,
     New York City time, on such Distribution Date);

                (vi)    to the Certificate Payment Account, the Monthly
     Certificate Principal for such Distribution Date (which payment shall be
     made no later than 12:00 p.m., New York City time, on such Distribution
     Date);

                (vii)   to the Insurer, the Insurance Premium for such
     Distribution Date plus any overdue Insurance Premiums for previous
     Distribution Dates;

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<PAGE>

               (viii) to the Insurer, the aggregate amount of any unreimbursed
     payments under the Policy, including any amount deposited by the Insurer
     pursuant to Section 5.2(d) or (e) of the Indenture, to the extent payable
     to the Insurer under the Insurance Agreement plus accrued interest on any
     unreimbursed payments under the Policy, including any amount deposited by
     the Insurer pursuant to Section 5.2(d) or (e) of the Indenture, at the rate
     provided in the Insurance Agreement plus any other amounts due the Insurer
     under the Insurance Agreement plus any unreimbursed Insurer Defense Costs;

               (ix)   if the Notes have been declared immediately due and
     payable following an Event of Default (as defined in the Indenture), to the
     Note Payment Account, an amount equal to the outstanding principal balance
     of the Notes as of such Distribution Date (before giving effect to the
     application of Available Funds on such Distribution Date) minus the Monthly
     Note Principal for such Distribution Date;

               (x)    if a successor Servicer has been appointed pursuant to
     Section 8.2, to such successor Servicer, any unpaid Transition Costs due in
     connection with such transfer of servicing plus the Additional Servicing
     Fee, if any, for the preceding Collection Period;

               (xi)   to the Reserve Account, the Reserve Account Deficiency, if
     any, for such Distribution Date; and

               (xii)  to the Seller, as holder of the Residual Interest, any
     remaining Available Funds (the "Excess Collections").

          (e)  The Indenture Trustee shall provide prompt written notice to the
Insurer of any action or proceeding known to the Indenture Trustee seeking to
recover all or any portion of any payment made to the Noteholders or the
Certificateholders as a voidable preference under the United States Bankruptcy
Code (11 U.S.C.), as amended from time to time. If the Indenture Trustee has
received a Final Order with respect to a preference payment, it shall promptly
notify the Insurer of such Final Order and shall comply with the provisions of
the Policy to obtain payment by the Insurer of such preference payment. The
Indenture Trustee shall furnish to the Insurer such information as the Insurer
shall reasonably request with respect to such preference payment.

          SECTION 4.7  Reserve Account.

          (a)  The Servicer shall establish, on or before the Closing Date, and
maintain in the name of the Indenture Trustee at an Eligible Institution (which
shall initially be the Indenture Trustee) a segregated trust account designated
as the Reserve Account (the "Reserve Account"). The Reserve Account shall be
held in trust for the benefit of the Noteholders, the Certificateholders and the
Insurer. The Reserve Account shall be under the sole dominion and control of the
Indenture Trustee; provided, however, that the Servicer may make deposits to and
direct the Indenture Trustee in writing to make withdrawals from the Reserve
Account in accordance with this Agreement and the Indenture. On the Closing
Date, the Depositor shall deposit the Initial Reserve Account Deposit into the
Reserve Account from the net proceeds of

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<PAGE>

the sale of the Notes. The Reserve Account and all amounts, securities,
investments, financial assets and other property deposited in or credited to the
Reserve Account (the "Reserve Account Property") has been conveyed by the
Depositor to the Trust pursuant to Section 2.1(a). Pursuant to the Indenture,
the Trust will pledge all of its right, title and interest in, to and under the
Reserve Account and the Reserve Account Property to the Insurer and to the
Indenture Trustee on behalf of the Noteholders and the Certificateholders to
secure its obligations under the Notes and the Indenture.

          (b)  The Reserve Account Property shall, to the extent permitted by
applicable law, rules and regulations, be invested, as directed in writing by
the Servicer, by the bank or trust company then maintaining the Reserve Account
in Permitted Investments that mature not later than the Business Day preceding
the next Distribution Date. All such Permitted Investments shall be held to
maturity. All interest and other income (net of losses and investment expenses)
on funds on deposit in the Reserve Account shall, at the written direction of
the Servicer, be paid to the Seller, as holder of the Residual Interest, on any
Distribution Date to the extent that funds on deposit therein, as certified by
the Servicer, exceed the Required Reserve Account Amount. If the Reserve Account
is no longer to be maintained at the Indenture Trustee, the Servicer shall, with
the Indenture Trustee's assistance as necessary, promptly (and in any case
within ten (10) calendar days or such longer period not to exceed thirty (30)
calendar days as to which each Rating Agency may consent) cause the Reserve
Account to be moved to an Eligible Institution. The Servicer shall promptly
notify the Insurer, the Indenture Trustee and the Owner Trustee in writing of
any change in the account number or location of the Reserve Account.

          (c)  With respect to any Reserve Account Property:

               (i)   any Reserve Account Property that is a "financial asset"
     (as defined in Section 8-102(a)(9) of the Relevant UCC) shall be physically
     delivered to, or credited to an account in the name of, the Eligible
     Institution maintaining the Reserve Account, in accordance with such
     institution's customary procedures such that such institution establishes a
     "securities entitlement" in favor of the Indenture Trustee with respect
     thereto;

               (ii)  any Reserve Account Property that is held in deposit
     accounts shall be held solely in the name of the Indenture Trustee at one
     or more depository institutions having the Required Rating and each such
     deposit account shall be subject to the exclusive custody and control of
     the Indenture Trustee and the Indenture Trustee shall have sole signature
     authority with respect thereto; and

               (iii) except for any deposit accounts specified in clause (ii)
     above, the Reserve Account shall only be invested in securities or in other
     assets which the Eligible Institution maintaining the Reserve Account
     agrees to treat as "financial assets" (as defined in Section 8-102(a)(9) of
     the Relevant UCC).

          (d)  If the Reserve Account Amount for any Distribution Date (after
giving effect to the withdrawal of the Reserve Account Draw Amount for such
Distribution Date) exceeds the Required Reserve Account Amount for such
Distribution Date, the Servicer shall instruct the Indenture Trustee in writing
to distribute the amount of such excess to the Seller, as

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<PAGE>

holder of the Residual Interest. The Indenture Trustee and the Owner Trustee
hereby release, on each Distribution Date, their security interest in, to and
under Reserve Account Property distributed to the Seller, as holder of the
Residual Interest.

          (e)  If the Note Balance and the Certificate Balance, and all other
amounts owing or to be distributed hereunder or under the Indenture or the Trust
Agreement to the Noteholders, the Certificateholders or the Insurer, have been
paid in full and the Trust has been terminated, any remaining Reserve Account
Property shall be distributed to the Seller, as holder of the Residual Interest.

          SECTION 4.8 Net Deposits. As an administrative convenience, unless the
Servicer is required to remit collections on a daily basis pursuant to the first
sentence of Section 4.2, the Depositor and the Servicer may make any remittance
pursuant to this Article IV with respect to a Collection Period net of
distributions to be made to the Depositor or the Servicer with respect to such
Collection Period; provided, however, that such obligations shall remain
separate obligations, no party shall have a right of offset and each such party
shall account for all of the above described remittances and distributions as if
the amounts were deposited and/or transferred separately.

          SECTION 4.9 Statements to Noteholders and Certificateholders. On or
prior to each Distribution Date, the Servicer shall provide to the Indenture
Trustee (with copies to the Depositor, the Insurer, the Rating Agencies and each
Paying Agent), for the Indenture Trustee to forward to each Noteholder of record
as of the most recent Record Date and to the Owner Trustee (with copies to the
Depositor, the Insurer, the Rating Agencies and each Paying Agent) for the Owner
Trustee to forward to each Certificateholder of record as of the most recent
Record Date, a statement in substantially the form of Exhibit C to this
Agreement or Exhibit D to this Agreement, as applicable. Each such statement
shall set forth at least the following information as to the Notes and the
Certificates (to the extent applicable) with respect to the distribution to be
made on such Distribution Date:

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

               (ii)  the amount of such distribution allocable to current and
     overdue interest (including any interest on overdue interest) for each
     class of Notes and for the Certificates;

               (iii) the Total Servicing Fee for the preceding Collection
     Period;

               (iv)  the aggregate outstanding principal balance of each class
     of Notes, the Note Pool Factor with respect to each class of Notes, the
     Certificate Balance and the Certificate Pool Factor (in each case after
     giving effect to payments allocated to principal reported under clause (i)
     above);

               (v)   the Pool Balance as of the close of business on the last
     day of the preceding Collection Period;

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<PAGE>

               (vi)   the Reserve Account Amount on such Distribution Date
     (after giving effect to all deposits to or withdrawals from the Reserve
     Account on such Distribution Date);

               (vii)  the aggregate Purchase Amount of Receivables repurchased
     by the Seller or purchased by the Servicer, if any, with respect to the
     preceding Collection Period;

               (viii) the number and aggregate Principal Balance of Receivables
     that were 31-60 days, 61-90 days or 91 days or more delinquent as of the
     last day of the preceding Collection Period; and

               (ix)   the Net Losses with respect to the preceding Collection
     Period.

          SECTION 4.10 Control of Securities Accounts. Notwithstanding anything
to the contrary contained herein, the Trust agrees that each of the Collection
Account, the Note Payment Account, the Certificate Payment Account and the
Reserve Account will only be established at an Eligible Institution that agrees
substantially as follows: (i) it will comply with "entitlement orders" (as
defined in Section 8-102(a)(8) of the Relevant UCC) relating to such accounts
issued by the Indenture Trustee without further consent by the Trust; (ii) until
the termination of the Indenture, it will not enter into any other agreement
relating to any such account pursuant to which it agrees to comply with
entitlement orders of any Person other than the Indenture Trustee; and (iii) all
assets delivered or credited to it in connection with such accounts and all
investments thereof will be promptly credited to such accounts.

          SECTION 4.11 Policy Matters.

          (a)  The Indenture Trustee hereby agrees on behalf of the Noteholders
(and each Noteholder, by its acceptance of its Notes, hereby agrees) for the
benefit of the Insurer that the Indenture Trustee shall recognize that to the
extent the Insurer makes a payment under the Policy, either directly or
indirectly (as by paying through the Indenture Trustee), to the Noteholders, the
Insurer will be entitled to be subrogated to the rights of the Noteholders to
the extent of such payment made under the Policy. Any rights of subrogation
acquired by the Insurer as a result of any payment made under the Policy shall,
in all respects, be subordinate and junior in right of payment to the prior
indefeasible payment in full of all amounts due under the Notes.

          (b)  The Owner Trustee hereby agrees on behalf of the
Certificateholders (and each Certificateholder, by its acceptance of its
Certificates, hereby agrees) for the benefit of the Insurer that the Indenture
Trustee shall recognize that to the extent the Insurer makes a payment under the
Policy, either directly or indirectly (as by paying through the Indenture
Trustee), to the Certificateholders, the Insurer will be entitled to be
subrogated to the rights of the Certificateholders to the extent of such payment
made under the Policy. Any rights of subrogation acquired by the Insurer as a
result of any payment made under the Policy shall, in all respects, be
subordinate and junior in right of payment to the prior indefeasible payment in
full of all amounts due under the Certificates.

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<PAGE>

          (c)  The Indenture Trustee, for itself and on behalf of the
Noteholders, hereby agrees that the Insurer may at any time during the
continuation of any proceeding relating to a Final Order direct all matters
relating to such Final Order, including the direction of any appeal of any order
relating to such Final Order and the posting of any surety, supersedeas or
performance bond pending any such appeal. In addition and without limitation of
the foregoing, the Insurer shall be subrogated, to the extent of any payments
made under the Policy, to the rights of the Depositor, the Seller, the Servicer,
the Trust, the Indenture Trustee and the Noteholders in the conduct of any
preference claim, including all rights of any party to any adversarial
proceeding or action with respect to any court order issued in connection with
any such preference claim.

          (d)  The Owner Trustee, for itself and on behalf of the
Certificateholders, hereby agrees that the Insurer may at any time during the
continuation of any proceeding relating to a Final Order direct all matters
relating to such Final Order, including the direction of any appeal of any order
relating to such Final Order and the posting of any surety, supersedeas or
performance bond pending any such appeal. In addition and without limitation of
the foregoing, the Insurer shall be subrogated, to the extent of any payments
made under the Policy, to the rights of the Depositor, the Seller, the Servicer,
the Trust, the Owner Trustee and the Certificateholders in the conduct of any
preference claim, including all rights of any party to any adversarial
proceeding or action with respect to any court order issued in connection with
any such preference claim.

                                   ARTICLE V
                                   [RESERVED]

                                   ARTICLE VI
                                  THE DEPOSITOR

          SECTION 6.1 Representations and Warranties of Depositor. The Depositor
makes the following representations and warranties on which the Trust shall be
deemed to have relied in accepting the Trust Property. The representations and
warranties speak as of the execution and delivery of this Agreement and shall
survive the sale, transfer, assignment and conveyance of the Trust Property to
the Trust pursuant to this Agreement and the pledge of the Trust Property to the
Indenture Trustee pursuant to the Indenture:

          (a)  Organization and Good Standing. The Depositor has been duly
organized and is validly existing as a limited liability company in good
standing under the laws of the State of Delaware, has the power, authority and
legal right to own its properties and to conduct its business as such properties
are currently owned and such business is currently conducted, and has the power,
authority and legal right to acquire, own and sell the Receivables.

          (b)  Due Qualification. The Depositor is duly qualified to do business
as a foreign limited liability company in good standing and has obtained all
necessary licenses and approvals in each jurisdiction in which the failure to so
qualify or to obtain such licenses and approvals would, in the reasonable
judgment of the Depositor, materially and adversely affect the performance by
the Depositor of its obligations under, or the validity or enforceability of,
this

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<PAGE>

Agreement, any of the other Transaction Documents to which the Depositor is a
party, the Receivables, the Notes or the Certificates.

          (c)  Power and Authority. The Depositor has the power and authority to
execute, deliver and perform its obligations under this Agreement and the other
Transaction Documents to which it is a party. The Depositor has the power and
authority to sell, assign, transfer and convey the property to be transferred to
and deposited with the Trust and has duly authorized such transfer and deposit
by all necessary limited liability company action, and the execution, delivery
and performance of this Agreement and the other Transaction Documents to which
the Depositor is a party have been duly authorized by the Depositor by all
necessary limited liability company action.

          (d)  Valid Transfer; Binding Obligation. This Agreement effects a
valid sale, transfer, assignment and conveyance to the Trust of the Receivables
and the other Trust Property enforceable against all creditors of and purchasers
from the Depositor. This Agreement and the other Transaction Documents to which
the Depositor is a party constitute legal, valid and binding obligations of the
Depositor, enforceable against the Depositor in accordance with their terms,
subject, as to enforceability, to applicable bankruptcy, insolvency,
reorganization, conservatorship, receivership, liquidation and other similar
laws and to general equitable principles.

          (e)  No Violation. The execution, delivery and performance by the
Depositor of this Agreement and the other Transaction Documents to which the
Depositor is a party, the consummation of the transactions contemplated hereby
and thereby and the fulfillment of the terms hereof and thereof will not
conflict with, result in a breach of any of the terms and provisions of or
constitute (with or without notice or lapse of time or both) a default under the
certificate of formation or limited liability company agreement of the Depositor
or any material indenture, agreement, mortgage, deed of trust or other
instrument to which the Depositor is a party or by which the Depositor is bound
or to which any of its properties are subject, or result in the creation or
imposition of any lien upon any of its properties pursuant to the terms of any
such indenture, agreement, mortgage, deed of trust or other instrument (other
than pursuant to this Agreement), or violate any law, order, rule or regulation
applicable to the Depositor or its properties of any federal or state regulatory
body, court, administrative agency or other governmental instrumentality having
jurisdiction over the Depositor or any of its properties.

          (f)  No Proceedings. There are no proceedings or investigations
ending or, to the knowledge of the Depositor, threatened against the Depositor
before any court, regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over the Depositor or its properties (i)
asserting the invalidity of this Agreement, the Indenture, the Trust Agreement,
any of the other Transaction Documents, the Notes or the Certificates, (ii)
seeking to prevent the issuance of the Notes or the Certificates or the
consummation of any of the transactions contemplated by this Agreement, the
Indenture, the Trust Agreement or any of the other Transaction Documents, (iii)
seeking any determination or ruling that, in the reasonable judgment of the
Depositor, would materially and adversely affect the performance by the
Depositor of its obligations under, or the validity or enforceability of, this
Agreement, the Indenture, the Trust Agreement, any of the other Transaction
Documents, the Receivables, the Notes or the Certificates, or (iv) that, in the
reasonable judgment of the Depositor, would

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<PAGE>

adversely affect the federal or Applicable Tax State income, excise, franchise
or similar tax attributes of the Trust or of the Notes or the Certificates.

          SECTION 6.2  Liability of Depositor; Indemnities.

          (a)  The Depositor shall be liable in accordance herewith only to the
extent of the obligations specifically undertaken by the Depositor under this
Agreement.

          (b)  The Depositor shall indemnify, defend and hold harmless the
Trust, the Owner Trustee and the Indenture Trustee from and against any taxes
that may at any time be asserted against any such Person with respect to, and as
of the date of, the transfer of the Receivables to the Trust or the issuance and
original sale of the Notes or the Certificates, including any sales, gross
receipts, general corporation, tangible personal property, privilege or license
taxes (but, in the case of the Trust, not including any taxes asserted with
respect to ownership of the Receivables or federal or other Applicable Tax State
income taxes arising out of the transactions contemplated by this Agreement and
the other Transaction Documents), and all costs and expenses in defending
against such taxes.

          (c)  The Depositor shall indemnify, defend and hold harmless the
Trust, the Owner Trustee, the Indenture Trustee, the Noteholders and the
Certificateholders from and against any loss, liability or expense incurred by
reason of (i) the Depositor's willful misfeasance, bad faith or gross negligence
in the performance of its duties under this Agreement or any other Transaction
Document to which it is a party or by reason of a reckless disregard of its
obligations and duties under this Agreement or any other Transaction Document to
which it is a party and (ii) the Depositor's violation of federal or state
securities laws in connection with the registration or the sale of the Notes or
the Certificates.

          (d)  The Depositor shall indemnify, defend and hold harmless the Owner
Trustee and the Indenture Trustee and their respective officers, directors,
employees and agents from and against all costs, expenses, losses, claims,
damages and liabilities arising out of or incurred in connection with the
acceptance or performance of the trusts and duties contained herein and in the
Trust Agreement, in the case of the Owner Trustee, and in the Indenture, in the
case of the Indenture Trustee, except to the extent that such cost, expense,
loss, claim, damage or liability (i) shall be due to the willful misfeasance,
bad faith or gross negligence (except for errors in judgment) of the Owner
Trustee or the Indenture Trustee, as applicable, (ii) in the case of the Owner
Trustee, shall arise from the breach by the Owner Trustee of any of its
representations or warranties set forth in the Trust Agreement, (iii) in the
case of the Indenture Trustee, shall arise from the breach by the Indenture
Trustee of any of its representations and warranties set forth in the Indenture
or (iv) relates to any tax other than the taxes with respect to which either the
Depositor or the Servicer shall be required to indemnify the Owner Trustee or
the Indenture Trustee, as applicable.

          (e)  The Depositor shall pay any and all taxes levied or assessed upon
all or any part of the Owner Trust Estate.

          Indemnification under this Section 6.2 shall survive the resignation
or removal of the Owner Trustee or the Indenture Trustee and the termination of
this Agreement and shall

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<PAGE>

include reasonable fees and expenses of counsel and expenses of litigation. If
the Depositor shall have made any indemnity payments pursuant to this Section
6.2 and the Person to or on behalf of whom such payments are made thereafter
shall collect any of such amounts from others, such Person shall promptly repay
such amounts to the Depositor, without interest.

          SECTION 6.3  Merger or Consolidation of, or Assumption of the
Obligations of, Depositor. Any Person (i) into which the Depositor shall be
merged or consolidated, (ii) resulting from any merger, conversion or
consolidation to which the Depositor shall be a party or (iii) that shall
succeed by purchase and assumption to all or substantially all of the business
of the Depositor, which Person in any of the foregoing cases executes an
agreement of assumption to perform every obligation of the Depositor under this
Agreement, shall be the successor to the Depositor under this Agreement without
the execution or filing of any other document or any further act on the part of
any of the parties to this Agreement; provided, however, that (x) the Depositor
shall have delivered to the Owner Trustee and the Indenture Trustee an Officer's
Certificate and an Opinion of Counsel each stating that such merger, conversion,
consolidation or succession and such agreement of assumption comply with this
Section 6.3, (y) the Depositor shall have delivered to the Owner Trustee and the
Indenture Trustee an Opinion of Counsel either (A) stating that, in the opinion
of such counsel, all financing statements and continuation statements and
amendments thereto have been authorized and filed that are necessary to fully
preserve and protect the interest of the Trust and the Indenture Trustee,
respectively, in the Receivables, and reciting the details of such filings or
referring to prior Opinions of Counsel in which such details are given, or (B)
stating that, in the opinion of such counsel, no such action shall be necessary
to fully preserve and protect such interest and (z) the Rating Agency Condition
shall have been satisfied and, unless an Insurer Default shall have occurred and
be continuing, the written consent of the Insurer shall have been obtained. The
Depositor shall provide prior written notice of any merger, conversion,
consolidation or succession pursuant to this Section 6.3 to the Insurer.
Notwithstanding anything to the contrary contained herein, the execution of the
foregoing agreement of assumption and compliance with clauses (x), (y) and (z)
above shall be conditions to the consummation of the transactions referred to in
clauses (i), (ii) and (iii) above.

          SECTION  6.4  Limitation on Liability of Depositor and Others.

          (a)  Neither the Depositor nor any of the directors, officers,
employees or agents of the Depositor shall be under any liability to the Trust,
the Noteholders or the Certificateholders for any action taken or for refraining
from the taking of any action pursuant to this Agreement or for errors in
judgment; provided, however, that this provision shall not protect the Depositor
or any such Person against any liability that would otherwise be imposed by
reason of willful misfeasance or bad faith in the performance of duties or by
reason of reckless disregard of obligations and duties under this Agreement, or
by reason of gross negligence in the performance of duties under this Agreement
(except for errors in judgment). The Depositor, and its directors, officers,
employees and agents, may rely in good faith on the advice of counsel or on any
document of any kind prima facie properly executed and submitted by any Person
in respect of any matters arising under this Agreement.

                                       40

<PAGE>

          (b)  The Depositor shall not be under any obligation to appear in,
prosecute or defend any legal action that shall not be incidental to its
obligations under this Agreement and that in its opinion may involve it in any
expense or liability.

          SECTION 6.5  Depositor May Own Notes or Certificates. The Depositor,
and any Affiliate of the Depositor, may, in its individual or any other
capacity, become the owner or pledgee of Notes or Certificates with the same
rights as it would have if it were not the Depositor or an Affiliate of the
Depositor, except as otherwise expressly provided herein (including in the
definitions of "Note Balance" and "Certificate Balance") or in the other
Transaction Documents. Except as otherwise expressly provided herein (including
the definition of "Certificate Balance" and "Note Balance") or in the other
Transaction Documents, Notes and Certificates so owned by or pledged to the
Depositor or such Affiliate shall have an equal and proportionate benefit under
the provisions of this Agreement and the other Transaction Documents, without
preference, priority or distinction as among the Notes and the Certificates.

          SECTION 6.6  RESERVED.

          SECTION 6.7  Certain Limitations.

          (a)  The purpose of the Depositor shall be limited to the conduct or
promotion of the following activities: (i) to acquire retail installment sales
contracts, purchase money notes or other notes between motor vehicle dealers or
lenders and purchasers of new and used automobiles, minivans, sport utility
vehicles, light-duty trucks, motorcycles or commercial vehicles (the "Motor
Vehicle Receivables"); (ii) to act as settlor or grantor of one or more trusts
or special purpose entities (each, a "Securitization Trust") formed pursuant to
a trust agreement or other agreement for the purpose of issuing one or more
series or classes of certificates, bonds, notes or other evidences of interest
or indebtedness (collectively, the "Securities") secured by or representing
beneficial interests in the Motor Vehicle Receivables; (iii) to acquire, lease,
own, hold, sell, transfer, convey, dispose of, pledge, assign, borrow money
against, finance, refinance or otherwise deal with, publicly or privately held
and whether with unrelated third parties or with affiliated entities, retail
installment sales contracts, purchase money notes or other notes between motor
vehicle dealers or lenders and purchasers of Motor Vehicle Receivables; (iv) to
acquire Securities or other property of a Securitization Trust (including
remainder interests in collateral or reserve accounts) or any interest in any of
the foregoing; (v) to issue, authorize, sell and deliver Securities or other
instruments secured or collateralized by the Securities; (vi) to own equity
interests in other limited liability companies or partnerships whose purposes
are substantially restricted to those described in clauses (i) through (v)
above; (vii) to borrow money other than pursuant to clause (iii) above, but only
to the extent that such borrowing is permitted by the terms of the transactions
contemplated by clauses (i) through (vi) above; and (viii) to (A) negotiate,
authorize, execute, deliver or assume or perform the obligations under any
agreement, instrument or document relating to the activities set forth in
clauses (i) through (vii) above, including the Basic Documents (as defined in
the limited liability company agreement of the Depositor) and (B) engage in any
lawful act or activity and to exercise any powers permitted to limited liability
companies organized under the laws of the State of Delaware that are incidental
to and necessary, convenient or advisable for the accomplishment of the
above-mentioned purposes, including the entering into of interest rate or basis
swap, cap, floor or collar agreements, currency exchange agreements or similar
hedging transactions and referral,

                                       41

<PAGE>

management, servicing and administration agreements. So long as any outstanding
debt of the Depositor or Securities are rated by any nationally recognized
statistical rating organization, the Depositor shall not issue notes or
otherwise borrow money unless (1) the Depositor has made a written request to
the related nationally recognized statistical rating organization to issue notes
or incur borrowings, which notes or borrowings are rated by the related
nationally recognized statistical rating organization the same as or higher than
the rating afforded any outstanding rated debt or Securities, or (2) such notes
or borrowings (x) are fully subordinated (and which shall provide for payment
only after payment in respect of all outstanding rated debt and/or Securities)
or are nonrecourse against any assets of the Depositor other than the assets
pledged to secure such notes or borrowings, (y) do not constitute a claim
against the Depositor in the event such assets are insufficient to pay such
notes or borrowings and (z) where such notes or borrowings are secured by the
rated debt or Securities, are fully subordinated (and which shall provide for
payment only after payment in respect of all outstanding rated debt and/or
Securities) to such rated debt or Securities.

          (b)  Notwithstanding any other provision of this Section and any
provision of law, the Depositor shall not do any of the following:

               (i)     engage in any business or activity other than as set
     forth in clause (a) above; or

               (ii)    without the unanimous written consent of the members of
     the Depositor and the members of the Board of Directors of the Depositor
     (including all independent directors of the Depositor), (A) consolidate or
     merge the Depositor with or into any Person or sell all or substantially
     all of the assets of the Depositor, (B) institute proceedings to have the
     Depositor be adjudicated bankrupt or insolvent, or consent to the
     institution of bankruptcy or insolvency proceedings against Depositor, (C)
     file a petition seeking, or consent to, reorganization or relief with
     respect to the Depositor under any applicable federal or state law relating
     to bankruptcy, (D) consent to the appointment of a receiver, liquidator,
     assignee, trustee, sequestrator or other similar official of the Depositor
     or a substantial part of its property, (E) make any assignment for the
     benefit of creditors of the Depositor, (F) admit in writing the Depositor's
     inability to pay its debts generally as they become due, (G) take any
     action in furtherance of any action set forth in clauses (A) through (F)
     above or (H) to the fullest extent permitted by law, dissolve or liquidate
     the Depositor.

          (c)  The Depositor shall not amend its organizational documents except
in accordance with the provisions thereof.

                                   ARTICLE VII
                                  THE SERVICER

          SECTION 7.1  Representations and Warranties of Servicer. The Servicer
makes the following representations and warranties on which the Trust shall be
deemed to have relied in accepting the Trust Property. The representations and
warranties speak as of the execution and delivery of this Agreement and shall
survive the sale, transfer, assignment and

                                       42

<PAGE>

conveyance of the Trust Property to the Trust pursuant to this Agreement and the
pledge of the Trust Property to the Indenture Trustee pursuant to the Indenture:

          (a)  Organization and Good Standing. The Servicer has been duly
organized and is validly existing as a corporation in good standing under the
laws of the state of its incorporation, has the power, authority and legal right
to own its properties and to conduct its business as such properties are
currently owned and such business is currently conducted and has the power,
authority and legal right to acquire, own, sell and service the Receivables and
to hold the Receivable Files as custodian on behalf of the Trust.

          (b)  Due Qualification. The Servicer is duly qualified to do business
as a foreign corporation in good standing and has obtained all necessary
licenses and approvals in each jurisdiction in which the failure to so qualify
or to obtain such licenses and approvals would, in the reasonable judgment of
the Depositor, materially and adversely affect the performance by the Depositor
of its obligations under, or the validity or enforceability of, this Agreement,
the Indenture, the Trust Agreement, any of the other Transaction Documents, the
Receivables, the Notes or the Certificates.

          (c)  Power and Authority. The Servicer has the power and authority to
execute, deliver and perform its obligations under this Agreement and the other
Transaction Documents to which it is a party, and the execution, delivery and
performance of this Agreement and the other Transaction Documents to which the
Servicer is a party have been duly authorized by the Servicer by all necessary
corporate action.

          (d)  Binding Obligation. This Agreement and the other Transaction
Documents to which the Servicer is a party constitute legal, valid and binding
obligations of the Servicer, enforceable against the Servicer in accordance with
their terms, subject, as to enforceability, to applicable bankruptcy,
insolvency, reorganization, conservatorship, receivership, liquidation and other
similar laws and to general equitable principles.

          (e)  No Violation. The execution, delivery and performance by the
Servicer of this Agreement and the other Transaction Documents to which the
Servicer is a party, the consummation of the transactions contemplated hereby
and thereby and the fulfillment of the terms hereof and thereof will not
conflict with, result in a breach of any of the terms and provisions of or
constitute (with or without notice or lapse of time or both) a default under the
articles of incorporation or bylaws of the Servicer or any material indenture,
agreement, mortgage, deed of trust or other instrument to which the Servicer is
a party or by which the Servicer is bound or to which any of its properties are
subject, 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 the Servicer or its properties of any federal or state regulatory
body, court, administrative agency or other governmental instrumentality having
jurisdiction over the Servicer or any of its properties.

          (f)  No Proceedings. There are no proceedings or investigations
pending, or, to the knowledge of the Servicer, threatened, against the Servicer
before any court, regulatory body, administrative agency or other tribunal or
governmental instrumentality having jurisdiction

                                       43

<PAGE>

over the Servicer or its properties (i) asserting the invalidity of this
Agreement, (ii) seeking to prevent the consummation of any of the transactions
contemplated by this Agreement or (iii) seeking any determination or ruling
that, in the reasonable judgment of the Servicer would materially and adversely
affect the performance by the Servicer of its obligations under, or the validity
or enforceability of, this Agreement or the Receivables.

          (g)  Security Interest Matters. The Servicer has in its possession all
original copies of the motor vehicle retail installment sale contracts that
constitute or evidence the Receivables. The motor vehicle retail installment
sale contracts that constitute or evidence the Receivables do not have any marks
or notations indicating that they have been pledged, assigned or otherwise
conveyed to any Person other than the Depositor, the Trust or the Indenture
Trustee.

          SECTION 7.2  Liability of Servicer; Indemnities.

          (a)  The Servicer shall be liable in accordance herewith only to the
extent of the obligations specifically undertaken by the Servicer under this
Agreement.

          (b)  The Servicer shall indemnify, defend and hold harmless the Trust,
the Owner Trustee, the Indenture Trustee, the Noteholders, the
Certificateholders and the Depositor from and against all costs, expenses,
losses, claims, damages and liabilities arising out of or incurred in connection
with the use, ownership or operation by the Servicer or any Affiliate of the
Servicer of a Financed Vehicle.

          (c)  The Servicer shall indemnify, defend and hold harmless the Trust,
the Owner Trustee and the Indenture Trustee from and against any taxes that may
at any time be asserted against any such Person with respect to the transactions
contemplated in this Agreement or the other Transaction Documents, including any
sales, gross receipts, general corporation, tangible personal property,
privilege or license taxes (but, in the case of the Trust, not including any
taxes asserted with respect to, and as of the date of, the transfer of the
Receivables to the Trust or the issuance and original sale of the Notes or the
Certificates or asserted with respect to ownership of the Receivables or federal
or other Applicable Tax State income taxes arising out of the transactions
contemplated by this Agreement and the other Transaction Documents), and all
costs and expenses in defending against such taxes.

          (d)  The Servicer shall indemnify, defend and hold harmless the Trust,
the Owner Trustee, the Indenture Trustee, the Noteholders, the
Certificateholders and the Depositor from and against any loss, liability or
expense incurred by reason of the Servicer's willful misfeasance, bad faith or
gross negligence in the performance of its duties under this Agreement or any
other Transaction Document to which it is a party or by reason of a reckless
disregard of its obligations and duties under this Agreement or any other
Transaction Document to which it is a party.

          (e)  The Servicer shall indemnify, defend and hold harmless the Owner
Trustee and the Indenture Trustee and their respective officers, directors,
employees and agents from and against all costs, expenses, losses, claims,
damages and liabilities arising out of or incurred in connection with the
acceptance or performance of the trusts and duties contained herein and in the
Trust Agreement, in the case of the Owner Trustee, and in the Indenture, in the

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<PAGE>

case of the Indenture Trustee, except to the extent that such cost, expense,
loss, claim, damage or liability (i) shall be due to the willful misfeasance,
bad faith or gross negligence (except for errors in judgment) of the Owner
Trustee or the Indenture Trustee, as applicable, (ii) in the case of the Owner
Trustee, shall arise from the breach by the Owner Trustee of any of its
representations or warranties set forth in the Trust Agreement, (iii) in the
case of the Indenture Trustee, shall arise from the breach by the Indenture
Trustee of any of its representations and warranties set forth in the Indenture
or (iv) relates to any tax other than the taxes with respect to which either the
Depositor or the Servicer shall be required to indemnify the Owner Trustee or
the Indenture Trustee, as applicable.

         (f) For purposes of this Section 7.2, in the event of a termination of
the rights and obligations of CarMax (or any successor Servicer) as Servicer
pursuant to Section 8.1 or a resignation by CarMax (or any successor Servicer)
as Servicer pursuant to Section 7.6, CarMax (or any successor Servicer) shall be
deemed to be the Servicer pending appointment of a successor Servicer (other
than the Indenture Trustee) pursuant to Section 8.2. Indemnification under this
Section 7.2 by CarMax (or any successor Servicer) as Servicer, with respect to
the period such Person was (or was deemed to be) the Servicer, shall survive the
termination of such Person as Servicer or a resignation by such Person as
Servicer as well as the resignation or removal of the Owner Trustee or the
Indenture Trustee and the termination of this Agreement and shall include
reasonable fees and expenses of counsel and expenses of litigation and the fees
and expenses of the Owner Trustee and the Indenture Trustee. If the Servicer
shall have made any indemnity payments pursuant to this Section 7.2 and the
Person to or on behalf of whom such payments are made thereafter shall collect
any of such amounts from others, such Person shall promptly repay such amounts
to the Servicer, without interest.

         SECTION 7.3 Merger or Consolidation of, or Assumption of the
Obligations of, Servicer. Any Person (i) into which the Servicer shall be merged
or consolidated, (ii) resulting from any merger, conversion or consolidation to
which the Servicer shall be a party or (iii) that shall succeed by purchase and
assumption to all or substantially all of the business of the Servicer, which
Person in any of the foregoing cases is an Eligible Servicer and executes an
agreement of assumption to perform every obligation of the Servicer under this
Agreement, shall be the successor to the Servicer under this Agreement without
the execution or filing of any other document or any further act on the part of
any of the parties to this Agreement; provided, however, that (x) the Servicer
shall have delivered to the Depositor, the Owner Trustee and the Indenture
Trustee an Officer's Certificate and an Opinion of Counsel each stating that
such merger, conversion, consolidation or succession and such agreement of
assumption comply with this Section 7.3 and (y) the Servicer shall have
delivered to the Depositor, the Owner Trustee and the Indenture Trustee an
Opinion of Counsel either (A) stating that, in the opinion of such counsel, all
financing statements and continuation statements and amendments thereto have
been authorized and filed that are necessary to fully preserve and protect the
interest of the Trust and the Indenture Trustee, respectively, in the
Receivables, and reciting the details of such filings or referring to prior
Opinions of Counsel in which such details are given, or (B) stating that, in the
opinion of such counsel, no such action shall be necessary to fully preserve and
protect such interest. The Servicer shall provide prior written notice of any
merger, conversion, consolidation or succession pursuant to this Section 7.3 to
the Insurer and the Rating Agencies. Notwithstanding anything to the contrary
contained herein, the execution of the foregoing

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<PAGE>

agreement of assumption and compliance with clauses (x) and (y) above shall be
conditions to the consummation of the transactions referred to in clauses (i),
(ii) and (iii) above.

         SECTION 7.4 Limitation on Liability of Servicer and Others.

         (a) Neither the Servicer nor any of the directors, officers, employees
or agents of the Servicer shall be under any liability to the Trust, the
Noteholders or the Certificateholders for any action taken or for refraining
from the taking of any action pursuant to this Agreement or for errors in
judgment; provided, however, that this provision shall not protect the Servicer
or any such Person against any liability that would otherwise be imposed by
reason of willful misfeasance or bad faith in the performance of duties or by
reason of reckless disregard of obligations and duties under this Agreement, or
by reason of negligence in the performance of duties under this Agreement
(except for errors in judgment). The Servicer, and its directors, officers,
employees and agents, may rely in good faith on the advice of counsel or on any
document of any kind prima facie properly executed and submitted by any Person
in respect of any matters arising under this Agreement.

         (b) The Servicer shall not be under any obligation to appear in,
prosecute or defend any legal action that shall not be incidental to its duties
to service the Receivables in accordance with this Agreement and that in its
opinion may involve it in any expense or liability; provided, however, that the
Servicer may undertake any reasonable action that it may deem necessary or
desirable in respect of this Agreement and the rights and duties of the parties
to this Agreement and the interests of the Noteholders and the
Certificateholders under this Agreement. In such event, the legal expenses and
costs of such action and any liability resulting therefrom shall be expenses,
costs and liabilities of the Servicer.

         SECTION 7.5 Delegation of Duties. The Servicer may at any time delegate
its duties as servicer under this Agreement to third parties; provided, however,
that no such delegation shall relieve the Servicer of its responsibilities with
respect to such duties and the Servicer shall be solely responsible for the fees
of any such third party; and, provided further, that the Servicer must obtain
the prior written consent of the Insurer if such delegation is not in the
ordinary course of business.

         SECTION 7.6 Servicer Not to Resign. Subject to the provisions of
Section 7.3, the Servicer shall not resign from its obligations and duties under
this Agreement except upon a determination that the performance of its duties is
no longer permissible under applicable law. Any such determination permitting
the resignation of the Servicer shall be evidenced by an Opinion of Counsel to
such effect delivered to the Depositor, the Owner Trustee and the Indenture
Trustee. No such resignation shall become effective until the Indenture Trustee
or a successor Servicer shall have (i) assumed the obligations and duties of the
Servicer in accordance with Section 8.2 and (ii) become the Administrator under
the Administration Agreement pursuant to Section 8 thereof.

         SECTION 7.7 Servicer May Own Notes or Certificates. The Servicer, and
any Affiliate of the Servicer, may, in its individual or any other capacity,
become the owner or pledgee of Notes or Certificates with the same rights as it
would have if it were not the Servicer or an Affiliate of the Servicer, except
as otherwise expressly provided herein (including in the

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<PAGE>

definitions of "Note Balance" and "Certificate Balance") or in the other
Transaction Documents. Except as otherwise expressly provided herein (including
in the definitions of "Note Balance" and "Certificate Balance") or in the other
Transaction Documents, Notes and Certificates so owned by or pledged to the
Servicer or such Affiliate shall have an equal and proportionate benefit under
the provisions of this Agreement and the other Transaction Documents, without
preference, priority or distinction as among the Notes and the Certificates.

                                  ARTICLE VIII
                              SERVICING TERMINATION

         SECTION 8.1 Events of Servicing Termination.

         (a)  The occurrence of any one of the following events shall constitute
an event of servicing termination hereunder (each, an "Event of Servicing
Termination"):

              (i)   any failure by the Servicer to deliver to the Owner Trustee,
     the Indenture Trustee or the Insurer the Servicer's Certificate for any
     Collection Period, which failure shall continue unremedied beyond the
     earlier of three (3) Business Days following the date such Servicer's
     Certificate was required to be delivered and the Business Day preceding the
     related Distribution Date, or any failure by the Servicer to make any
     required payment or deposit under this Agreement, which failure shall
     continue unremedied beyond the earlier of five (5) Business Days following
     the date such payment or deposit was due and, in the case of a payment or
     deposit to be made no later than a Distribution Date or the Business Day
     preceding a Distribution Date, such Distribution Date or preceding Business
     Day, as applicable; or

              (ii)  any failure by the Servicer duly to observe or perform in
     any material respect any other covenant or agreement in this Agreement,
     which failure shall materially and adversely affect the rights of the
     Depositor, the Certificateholders, the Noteholders or the Insurer and shall
     continue unremedied for a period of sixty (60) days after the date on which
     written notice of such failure, requiring the same to be remedied, shall
     have been given to the Servicer by the Depositor, the Owner Trustee, the
     Indenture Trustee or the Insurer or to the Depositor, the Seller, the
     Servicer, the Owner Trustee and the Indenture Trustee by the Holders of
     Notes evidencing not less than 25% of the Note Balance or, if the Notes
     have been paid in full, by the Holders of Certificates evidencing not less
     than 25% of the Certificate Balance; or

              (iii) any representation or warranty of the Servicer made in this
     Agreement or in any certificate delivered pursuant hereto or in connection
     herewith, other than any representation and warranty relating to a
     Receivable that has been purchased by the Servicer, proving to have been
     incorrect in any material respect as of the time when the same shall have
     been made, and the circumstance or condition in respect of which such
     representation or warranty was incorrect shall not have been eliminated or
     otherwise cured for a period of thirty (30) days after the date on which
     written notice of such circumstance or condition, requiring the same to be
     eliminated or cured, shall have been given to the Servicer by the
     Depositor, the Owner Trustee, Indenture Trustee or the Insurer or to the
     Depositor, the Seller, the Servicer, the Owner Trustee and the Indenture

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<PAGE>

     Trustee by the Holders of Notes evidencing not less than 25% of the Note
     Balance or, if the Notes have been paid in full, by the Holders of
     Certificates evidencing not less than 25% of the Certificate Balance; or

              (iv) the entry of a decree or order by a court or agency or
     supervisory authority of competent jurisdiction for the appointment of a
     conservator, receiver, liquidator or trustee for the Servicer in any
     bankruptcy, insolvency, readjustment of debt, marshalling of assets and
     liabilities or similar proceeding, or for the winding up or liquidation of
     its affairs, which decree or order continues unstayed and in effect for a
     period of sixty (60) consecutive days; or

              (v)  the consent by the Servicer to the appointment of a
     conservator, receiver, liquidator or trustee in any bankruptcy, insolvency,
     readjustment of debt, marshalling of assets and liabilities or similar
     proceeding of or relating to the Servicer or relating to substantially all
     of its property, the admission in writing by the Servicer of its inability
     to pay its debts generally as they become due, the filing by the Servicer
     of a petition to take advantage of any applicable bankruptcy, insolvency or
     reorganization statute, the making by the Servicer of an assignment for the
     benefit of its creditors or the voluntary suspension by the Servicer of
     payment of its obligations; or

              (vi) the failure by the Servicer to be an Eligible Servicer.

         If an Event of Servicing Termination or a Trigger Event (as defined in
the Insurance Agreement) shall have occurred and be continuing and no Insurer
Default shall have occurred and be continuing, the Indenture Trustee or, if the
Notes have been paid in full, the Owner Trustee, in each case if directed in
writing to do so by the Insurer, by notice then given in writing to the
Depositor and the Servicer, shall terminate all of the rights and obligations of
the Servicer under this Agreement. If an Event of Servicing Termination shall
have occurred and be continuing and an Insurer Default shall have occurred and
be continuing, the Indenture Trustee or the Holders of Notes evidencing not less
than 51% of the Note Balance or, if the Notes have been paid in full, the Owner
Trustee or the Holders of Certificates evidencing not less than 51% of the
Certificate Balance, in each case by notice then given in writing to the
Depositor, the Servicer and the Insurer (with a copy to the Indenture Trustee
and the Owner Trustee if given by the Noteholders or the Certificateholders),
may terminate all of the rights and obligations of the Servicer under this
Agreement; provided, however, that the indemnification obligations of the
Servicer under Section 7.2 shall survive such termination. On or after the
receipt by the Servicer of such written notice, all authority and power of the
Servicer under this Agreement, whether with respect to the Notes, the
Certificates, the Trust Property or otherwise, shall pass to and be vested in
the Indenture Trustee or a successor Servicer appointed under Section 8.2 and,
without limitation, the Indenture Trustee and the Owner Trustee shall be
authorized and empowered to execute and deliver, on behalf of the Servicer, as
attorney-in-fact or otherwise, any and all documents and other instruments, and
to do or accomplish all other acts or things necessary or appropriate to effect
the purposes of such notice of termination, whether to complete the transfer and
endorsement of the Receivable Files or the certificates of title to the Financed
Vehicles or otherwise. The Servicer shall cooperate with the Indenture Trustee,
the Owner Trustee and such successor Servicer in effecting the termination of
its responsibilities and rights as Servicer under this Agreement, including the
transfer to the Indenture Trustee or such successor Servicer for

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<PAGE>

administration of all cash amounts that are at the time held by the Servicer for
deposit or thereafter shall be received with respect to a Receivable, all
Receivable Files and all information or documents that the Indenture Trustee or
such successor Servicer may require. In addition, the Servicer shall transfer
its electronic records relating to the Receivables to the successor Servicer in
such electronic form as the successor Servicer may reasonably request. All
reasonable costs and expenses (including reasonable attorneys' fees) incurred or
payable by the successor Servicer in connection with the transfer of servicing
(whether due to termination, resignation or otherwise), including allowable
compensation of employees and overhead costs incurred or payable in connection
with the transfer of the Receivable Files or any amendment to this Agreement
required in connection with the transfer of servicing (which amendment must be
approved in writing by the Insurer), (the "Transition Costs") shall be paid by
the outgoing Servicer (or by the initial Servicer if the outgoing Servicer is
the Indenture Trustee acting on an interim basis) upon presentation of
reasonable documentation of such costs and expenses.

         (b)  The Indenture Trustee and the Owner Trustee shall have no
obligation to notify the Noteholders, the Certificateholders or any other Person
of the occurrence of any event specified in Section 8.1(a) prior to the
continuance of such event through the end of any cure period specified in
Section 8.1(a).

         SECTION 8.2 Indenture Trustee to Act; Appointment of Successor
Servicer. Upon the resignation of the Servicer pursuant to Section 7.6 or the
termination of the Servicer pursuant to Section 8.1, the Indenture Trustee shall
be the successor in all respects to the Servicer in its capacity as Servicer
under this Agreement and shall be subject to all the obligations and duties
placed on the Servicer by the terms and provisions of this Agreement. As
compensation therefor, the Indenture Trustee shall be entitled to such
compensation (whether payable out of the Collection Account or otherwise) as the
Servicer would have been entitled to under this Agreement if no such resignation
or termination had occurred, except that all collections on or in respect of the
Receivables shall be deposited in the Collection Account within two (2) Business
Days of receipt and shall not be retained by the Servicer. Notwithstanding the
foregoing, the Indenture Trustee may, if it shall be unwilling so to act, or
shall, if it is legally unable so to act, appoint, or petition a court of
competent jurisdiction to appoint, an Eligible Servicer as the successor to the
terminated Servicer under this Agreement, subject to the approval of the
Insurer, unless an Insurer Default shall have occurred and be continuing. In
connection with such appointment, the Indenture Trustee may make such
arrangements for the compensation of such successor Servicer out of collections
on or in respect of the Receivables as it and such successor shall agree;
provided, however, that such compensation shall not be greater than that payable
to CarMax as Servicer hereunder without the prior written consent of the
Insurer. The Indenture Trustee and such successor shall take such action,
consistent with this Agreement, as shall be necessary to effectuate any such
succession. The Indenture Trustee shall not be relieved of its duties as
successor Servicer under this Section 8.2 until a newly appointed Servicer shall
have assumed the obligations and duties of the terminated Servicer under this
Agreement. Notwithstanding anything to the contrary contained herein, in no
event shall the Indenture Trustee be liable for any servicing fee or for any
differential in the amount of the servicing fee paid hereunder and the amount
necessary to induce any successor Servicer to act as successor Servicer
hereunder.

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<PAGE>

         SECTION 8.3 Effect of Servicing Transfer.

         (a)  After a transfer of servicing hereunder, the Indenture Trustee or
successor Servicer shall notify the Obligors to make directly to the successor
Servicer payments that are due under the Receivables after the effective date of
such transfer.

         (b)  Except as provided in Section 8.2, after a transfer of servicing
hereunder, the outgoing Servicer shall have no further obligations with respect
to the administration, servicing, custody or collection of the Receivables and
the successor Servicer shall have all of such obligations, except that the
outgoing Servicer will transmit or cause to be transmitted directly to the
successor Servicer for its own account, promptly on receipt and in the same form
in which received, any amounts or items held by the outgoing Servicer (properly
endorsed where required for the successor Servicer to collect any such items)
received as payments upon or otherwise in connection with the Receivables.

         (c)  Any successor Servicer shall provide the Depositor and the Insurer
with access to the Receivable Files and to the successor Servicer's records
(whether written or automated) with respect to the Receivable Files. Such access
shall be afforded without charge, but only upon reasonable request and during
normal business hours at the offices of the successor Servicer. Nothing in this
Section 8.3 shall affect the obligation of the successor Servicer to observe any
applicable law prohibiting disclosure of information regarding the Obligors, and
the failure of the Servicer to provide access to information as a result of such
obligation shall not constitute a breach of this Section 8.3.

         (d)  Any transfer of servicing hereunder shall not constitute an
assumption by the related successor Servicer of any liability of the related
outgoing Servicer arising out of any breach by such outgoing Servicer of such
outgoing Servicer's duties hereunder prior to such transfer of servicing.

         SECTION 8.4 Notification to Insurer, Noteholders, Certificateholders
and Rating Agencies. Upon any notice of an Event of Servicing Termination or
upon any termination of, or any appointment of a successor to, the Servicer
pursuant to this Article VIII, the Indenture Trustee shall give prompt written
notice thereof to the Insurer and the Noteholders and the Owner Trustee shall
give prompt written notice thereof to the Certificateholders and to the Rating
Agencies.

         SECTION 8.5 Waiver of Past Events of Servicing Termination. The Holders
of Notes evidencing not less than 51% of the Note Balance or, if the Notes have
been paid in full, the Holders of Certificates evidencing not less than 51% of
the Certificate Balance may, on behalf of all Noteholders and
Certificateholders, as applicable, waive any Event of Servicing Termination and
its consequences, except an event resulting from the failure to make any
required deposits to or payments from the Collection Account, the Note Payment
Account, the Certificate Payment Account, or the Reserve Account in accordance
with this Agreement; provided, however, that no Event of Servicing Termination
shall be waived without the consent of the Insurer if such waiver would
reasonably be expected to have a material adverse effect upon the rights of the
Insurer; and, provided further, that the Insurer (if no Insurer Default shall
have occurred and be continuing), in its discretion, may waive any Event of
Servicing

                                       50

<PAGE>

Termination. Upon any such waiver of an Event of Servicing Termination, such
event shall cease to exist, and shall be deemed to have been remedied for every
purpose of this Agreement. No such waiver shall extend to any subsequent or
other event or impair any right arising therefrom, except to the extent
expressly so waived.

                                   ARTICLE IX
                                   TERMINATION

         SECTION 9.1 Optional Purchase of All Receivables.

         (a)  If, as of the last day of any Collection Period, the Pool Balance
shall be less than or equal to 10% of the initial Pool Balance, the Servicer
shall have the option to purchase on the following Distribution Date the Owner
Trust Estate, other than the Collection Account, the Note Payment Account, the
Certificate Payment Account or the Reserve Account. To exercise such option, the
Servicer shall notify the Depositor, the Owner Trustee, the Indenture Trustee,
the Insurer and the Rating Agencies no later than thirty (30) days prior to the
Distribution Date on which such repurchase is to be effected and shall deposit
into the Collection Account on the Business Day preceding such Distribution Date
an amount equal to the aggregate Purchase Amount for the Receivables, plus the
appraised value of any other Trust Property, other than the Collection Account,
the Note Payment Account, the Certificate Payment Account or the Reserve
Account, such value to be determined by an appraiser mutually agreed upon by the
Servicer, the Owner Trustee, the Indenture Trustee and the Insurer; provided,
however, that the Servicer shall not be permitted to exercise such option unless
the amount to be deposited in the Collection Account pursuant to this Section
9.1(a) is at least equal to the sum of all amounts due to the Servicer under
this Agreement plus the Note Balance plus all accrued but unpaid interest
(including any overdue interest) on the Notes plus the Certificate Balance plus
all accrued but unpaid interest (including any overdue interest) on the
Certificates plus all amounts due to the Insurer under the Transaction Documents
or the Policy. Upon such payment, the Servicer shall succeed to and own all
interests in and to the Trust. The aggregate Purchase Amount for such
Distribution Date, plus, to the extent necessary, all amounts in the Reserve
Account, shall be used to make payments in full to the Noteholders, the
Certificateholders and the Insurer in the manner set forth in Article IV.

         (b)  If, at the time the Servicer exercises its purchase option
hereunder, the Servicer's long-term unsecured debt has a rating lower than
investment grade by the Rating Agencies, the Servicer shall deliver to the
Depositor, the Owner Trustee and the Indenture Trustee on such Distribution Date
(i) a letter from an Independent investment bank or an Independent public
accountant to the effect that the price paid by the Servicer for the Receivables
at the time of transfer pursuant to such purchase option represented a fair
market price for such Receivables or (ii) a letter from the Rating Agencies to
the effect that no such letter is required.

         (c)  Following the satisfaction and discharge of the Indenture and the
payment in full of the principal of and interest on the Notes, the
Certificateholders shall succeed to the rights of the Noteholders hereunder and
the Indenture Trustee shall continue to carry out its obligations hereunder with
respect to the Certificateholders, including making distributions from the
Collection Account in accordance with Section 4.6(d), making withdrawals from
the Reserve

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<PAGE>

Account in accordance with Sections 4.6(b) and 4.7 and submitting claims for
payment under the Insurance Policy in accordance with the terms thereof.

                                    ARTICLE X
                            MISCELLANEOUS PROVISIONS

         SECTION 10.1 Amendment.

         (a)  This Agreement may be amended from time to time by the Depositor,
the Seller, the Servicer and the Owner Trustee, on behalf of the Trust, with the
consent of the Indenture Trustee, but without the consent of any of the
Noteholders or the Certificateholders, to cure any ambiguity, to correct or
supplement any provision in this Agreement that may be inconsistent with any
other provisions in this Agreement or any offering document used in connection
with the initial offer and sale of the Notes or the Certificates or to add,
change or eliminate any other provisions with respect to matters or questions
arising under this Agreement that are not inconsistent with the provisions of
this Agreement; provided, however, that (i) no such amendment may materially
adversely affect the interests of any Noteholder or Certificateholder, (ii) no
such amendment will be permitted unless an Opinion of Counsel is delivered to
the Depositor, the Owner Trustee and the Indenture Trustee to the effect that
such amendment will not cause the Trust to be characterized for federal income
tax purposes as an association taxable as a corporation or otherwise have any
material adverse impact on the federal income taxation of any Notes Outstanding
or outstanding Certificates or any Noteholder or Certificateholder and (iii) no
such amendment will be permitted without the consent of the Insurer if such
amendment would reasonably be expected to materially adversely affect the
interests of the Insurer.

         (b)  This Agreement may also be amended from time to time by the
Depositor, the Seller, the Servicer and the Owner Trustee, on behalf of the
Trust, with the consent of the Indenture Trustee, the consent of the Holders of
Notes evidencing not less than 51% of the Note Balance or, if the Notes have
been paid in full, the consent of the Holders of Certificates evidencing not
less than 51% of the Certificate Balance, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Agreement, or of modifying in any manner the rights of the Noteholders or
the Certificateholders; provided, however, that (x) no such amendment will be
permitted unless an Opinion of Counsel is delivered to the Depositor, the Owner
Trustee and the Indenture Trustee to the effect that such amendment will not
cause the Trust to be characterized for federal income tax purposes as an
association taxable as a corporation or otherwise have any material adverse
impact on the federal income taxation of any Notes Outstanding or outstanding
Certificates or any Noteholder or Certificateholder and (y) no such amendment
will be permitted without the consent of the Insurer if such amendment would
reasonably be expected to materially adversely affect the interests of the
Insurer; and, provided further, that no such amendment may:

              (i)  increase or reduce in any manner the amount of, or accelerate
     or delay the timing of, or change the allocation or priority of,
     collections of payments on or in respect of the Receivables or
     distributions that are required to be made for the benefit of the
     Noteholders or the Certificateholders, or change any Note Rate or the
     Certificate

                                       52

<PAGE>

         Rate, without the consent of all Noteholders and Certificateholders
         adversely affected by such amendment;

                     (ii)  reduce the percentage of the Note Balance or the
         percentage of the Certificate Balance the consent of the Holders of
         which is required for any amendment to this Agreement without the
         consent of all the Noteholders and Certificateholders adversely
         affected by the amendment; or

                     (iii) adversely affect the rating assigned by either Rating
         Agency to any Class of Notes or the Certificates without the consent of
         the Holders of Notes evidencing not less than 66 2/3% of the aggregate
         principal amount of the then outstanding Notes of such Class or the
         consent of the Holders of Certificates evidencing not less than 66 2/3%
         of the Certificate Balance.

                (c)  An amendment to this Agreement shall be deemed not to
materially adversely affect the interests of any Noteholder or Certificateholder
if (i) the Person requesting such amendment obtains and delivers to the Owner
Trustee an Opinion of Counsel to that effect or (ii) the Rating Agency Condition
is satisfied.

                (d)  Prior to the execution of any amendment or consent pursuant
to Section 10.1, the Servicer shall provide written notification of the
substance of such amendment or consent to each Rating Agency and the Insurer.

                (e)  Promptly after the execution of any amendment or consent
pursuant to Section 10.1(b), the Owner Trustee shall furnish written
notification of the substance of such amendment or consent to each
Certificateholder. It shall not be necessary for the consent of the Noteholders
or the Certificateholders pursuant to Section 10.1(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 the Noteholders and the Certificateholders
provided for in this Agreement) and of evidencing the authorization of the
execution thereof by the Noteholders and the Certificateholders shall be subject
to such reasonable requirements as the Owner Trustee and the Indenture Trustee
may prescribe.

                (f)  Prior to the execution of any amendment pursuant to Section
10.1, the Depositor, the Owner Trustee and the Indenture Trustee shall be
entitled to receive and rely upon (i) an Opinion of Counsel stating that the
execution of such amendment is authorized or permitted by this Agreement and
(ii) an Officer's Certificate of the Servicer that all conditions precedent
provided for in this Agreement to the execution of such amendment have been
complied with. The Owner Trustee or the Indenture Trustee may, but shall not be
obligated to, enter into any such amendment which affects such Owner Trustee's
or Indenture Trustee's own rights, duties or immunities under this Agreement or
otherwise.

                (g)  The representations and warranties set forth in Section
2.3(b) and (c), Section 7.1(g) and paragraphs (l), (m) and (n) of Exhibit A to
this Agreement may not be amended or waived.

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<PAGE>

               SECTION 10.2 Protection of Title to Trust.

               (a)  The Depositor or the Servicer, or both, shall authorize and
file such financing statements and cause to be authorized and filed such
continuation statements, all in such manner and in such places as may be
required by law fully to preserve, maintain and protect the interest of the
Trust and the Indenture Trustee for the benefit of the Noteholders in the
Receivables and the proceeds thereof. The Depositor or the Servicer, or both,
shall deliver (or cause to be delivered) to the Owner Trustee and the Indenture
Trustee file-stamped copies of, or filing receipts for, any document filed as
provided above as soon as available following such filing.

               (b)  Neither the Depositor nor the Servicer shall change its
name, identity or organizational structure in any manner that would make any
financing statement or continuation statement filed by the Depositor or the
Servicer in accordance with Section 10.2(a) seriously misleading within the
meaning of Section 9-506 of the Relevant UCC, unless it shall have given the
Owner Trustee and the Indenture Trustee at least sixty (60) days' prior written
notice thereof and shall have promptly filed such amendments to previously filed
financing statements or continuation statements or such new financing statements
as may be necessary to continue the perfection of the interest of the Trust and
the Indenture Trustee for the benefit of the Noteholders in the Receivables and
the proceeds thereof.

               (c)  Each of the Depositor and the Servicer shall give the Owner
Trustee and the Indenture Trustee at least sixty (60) days' prior written notice
of any change in its name, identity, organizational structure or jurisdiction of
organization or any relocation of its principal place of business or chief
executive office if, as a result of such change or relocation, the applicable
provisions of the Relevant UCC would require the filing of any amendment to any
previously filed financing statement or continuation statement or of any new
financing statement and shall promptly file any such amendment, continuation
statement or new financing statement. The Depositor shall at all times maintain
its jurisdiction of organization, its principal place of business and its chief
executive office within the United States of America. The Servicer shall at all
times maintain each office from which it shall service Receivables and each
office at which the Receivable Files are located within the United States of
America.

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

               (e)  The Servicer shall maintain its computer systems so that,
from and after the time of the transfer of the Receivables to the Trust pursuant
to this Agreement, the Servicer's master computer records (including any back-up
archives) that refer to a Receivable shall indicate clearly and unambiguously
the interest of the Trust and the Indenture Trustee in such Receivable and that
such Receivable is owned by the Trust and has been pledged to the Indenture
Trustee pursuant to the Indenture. Indication of the Trust's and the Indenture
Trustee's interest in a Receivable shall be deleted from or modified on the
Servicer's computer systems when, and

                                       54

<PAGE>

only when, such Receivable shall have been paid in full or repurchased by the
Seller or purchased by the Servicer.

               (f)  If at any time the Depositor or the Servicer shall propose
to sell, grant a security interest in or otherwise transfer any interest in any
motor vehicle retail installment sale contract to any prospective purchaser,
lender or other transferee, the Servicer shall give to such prospective
purchaser, lender or other transferee computer tapes, compact disks, records or
print-outs (including any restored from back-up archives) that, if they shall
refer in any manner whatsoever to any Receivable, shall indicate clearly and
unambiguously that such Receivable has been sold and is owned by the Trust and
has been pledged to the Indenture Trustee (unless such Receivable has been paid
in full or repurchased by the Seller or purchased by the Servicer).

               (g)  The Servicer shall permit the Owner Trustee, the Indenture
Trustee and their respective agents at any time during normal business hours to
inspect, audit and make copies of and abstracts from the Servicer's records
regarding any Receivable.

               (h)  If the Seller has repurchased one or more Receivables from
the Trust pursuant to Section 2.4 or the Servicer has purchased one or more
Receivables from the Trust pursuant to Section 3.7, the Servicer shall, upon
request, furnish to the Owner Trustee and the Indenture Trustee, within ten (10)
Business Days, a list of all Receivables (by contract number and name of
Obligor) then held as part of the Trust, together with a reconciliation of such
list to the Receivable Schedule and to each of the Servicer's Certificates
furnished before such request indicating removal of Receivables from the Trust.

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

                          (1)  promptly after the authorization and delivery of
               each amendment to any financing statement, an Opinion of Counsel
               either (A) stating that, in the opinion of such counsel, all
               financing statements and continuation statements have been
               authorized and filed that are necessary fully to preserve and
               protect the interest of the Depositor (in the case of an opinion
               delivered by the Servicer) or the Trust and the Indenture Trustee
               (in the case of an opinion delivered by the Depositor) in the
               Receivables, and reciting the details of such filings or
               referring to prior Opinions of Counsel in which such details are
               given, or (B) stating that, in the opinion of such counsel, no
               such action shall be necessary to preserve and protect such
               interest; and

                          (2)  within ninety (90) days after the beginning of
               each calendar year (beginning with the year 2003), an Opinion of
               Counsel, dated as of a date during such 90-day period, either (A)
               stating that, in the opinion of such counsel, all financing
               statements and continuation statements have been authorized and
               filed that are necessary fully to preserve and protect the
               interest of the Depositor (in the case of an opinion delivered by
               the Servicer) or the Trust and the Indenture Trustee (in the case
               of an opinion delivered by the Depositor) in the Receivables, and
               reciting the details of such filings or referring to prior
               Opinions of Counsel in

                                       55

<PAGE>

               which such details are given, or (B) stating that, in the opinion
               of such counsel, no such action shall be necessary to preserve
               and protect such interest.

               Each Opinion of Counsel referred to in clause (i)(1) or (i)(2)
above shall specify any action necessary (as of the date of such opinion) to be
taken on or before March 31 of the following year to preserve and protect such
interest.

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

               SECTION 10.2 GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS
AND REMEDIES OF THE PARTIES UNDER THIS AGREEMENT SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS
PROVISIONS THEREOF WHICH MAY REQUIRE THE APPLICATION OF THE LAWS OF ANY OTHER
JURISDICTION (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATION LAW).

               SECTION 10.3 Notices. All demands, notices and other
communications under this Agreement shall be in writing, personally delivered,
sent by telecopier, overnight courier or mailed by certified mail, return
receipt requested, and shall be deemed to have been duly given upon receipt (i)
in the case of the Depositor, at the following address: 301 South College
Street, One Wachovia Center, Mail Code NC0610, Charlotte, North Carolina 28288,
Attention: General Counsel, (ii) in the case of the Seller or the Servicer, at
the following address: 4900 Cox Road, Glen Allen, Virginia 23060, Attention:
Treasury Department, (iii) in the case of the Owner Trustee, at the related
Corporate Trust Office, (iv) in the case of the Indenture Trustee, at the
related Corporate Trust Office, (v) 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 (vi) in the case of Standard & Poor's, at
the following address: Standard & Poor's, a division of The McGraw-Hill
Companies, Inc., 55 Water Street, 43rd Floor, New York, New York 10041,
Attention: Asset Backed Surveillance Department, and (vi) in the case of the
Insurer, at the following address: MBIA Insurance Corporation, 113 King Street,
Armonk, New York 10504, Attention: Insured Portfolio Management, Structured
Finance.

               SECTION 10.4 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 Notes or the
Certificates, or the rights of the Holders thereof.

               SECTION 10.5 Assignment. Notwithstanding anything to the contrary
contained herein, except as provided in Sections 7.3 and 8.2 and as provided in
the provisions of this Agreement concerning the resignation of the Servicer,
this Agreement may not be assigned by the Depositor, the Seller or the Servicer
without the prior written consent of the Owner

                                       56

<PAGE>

Trustee, the Indenture Trustee, the Holders of Notes evidencing not less than
66-2/3% of the Note Balance and the Holders of Certificates evidencing not less
than 66-2/3% of the Certificate Balance.

                SECTION 10.7 Further Assurances. The Depositor, the Seller, the
Servicer and the Trust agree to do and perform, from time to time, any and all
acts and to authorize and/or execute any and all further instruments required or
reasonably requested by the Owner Trustee or the Indenture Trustee more fully to
effect the purposes of this Agreement, including the authorization of any
financing statements or continuation statements relating to the Receivables for
filing under the provisions of the Relevant UCC of any applicable jurisdiction.

                SECTION 10.8 No Waiver; Cumulative Remedies. No failure to
exercise and no delay in exercising, on the part of the Depositor, the Owner
Trustee, the Indenture Trustee, the Noteholders or the Certificateholders, any
right, remedy, power or privilege hereunder, shall operate as a waiver thereof,
nor shall any single or partial exercise of any right, remedy, power or
privilege hereunder preclude any other or further exercise thereof or the
exercise of any other right, remedy, power or privilege. The rights, remedies,
powers and privileges provided in this Agreement are cumulative and not
exhaustive of any rights, remedies, powers and privileges provided by law.

                SECTION 10.9 Third-Party Beneficiaries. This Agreement shall
inure to the benefit of and be binding upon the parties hereto, the Owner
Trustee, the Noteholders, the Certificateholders, the Insurer and their
respective successors and permitted assigns. Except as otherwise provided in
this Article X, no other Person shall have any right or obligation hereunder.
The parties hereto hereby acknowledge and consent to the pledge of this
Agreement by the Trust to the Indenture Trustee for the benefit of the
Noteholders pursuant to the Indenture.

                SECTION 10.10 Actions by Noteholder or Certificateholders.

                (a)  Wherever in this Agreement a provision is made that an
action may be taken or a notice, demand or instruction given by the Noteholders
or the Certificateholders, such action, notice or instruction may be taken or
given by any Noteholder or any Certificateholder, as applicable, unless such
provision requires a specific percentage of the Noteholders or the
Certificateholders.

                (b)  Any request, demand, authorization, direction, notice,
consent, waiver or other act by a Noteholder or a Certificateholder shall bind
such Noteholder or Certificateholder and every subsequent Holder of such Note or
Certificate issued upon the registration of transfer thereof or in exchange
therefor or in lieu thereof in respect of anything done or omitted to be done by
the Owner Trustee, the Indenture Trustee or the Servicer in reliance thereon,
whether or not notation of such action is made upon such Note or Certificate.

                SECTION 10.11 Counterparts. For the purpose of facilitating the
execution of this Agreement and for other purposes, this Agreement may be
executed simultaneously in any number of counterparts, each of which
counterparts shall be deemed to be an original, and all of which counterparts
shall constitute but one and the same instrument.

                                       57

<PAGE>

                SECTION 10.12 No Bankruptcy Petition. The Owner Trustee, the
Indenture Trustee, the Trust and the Servicer each covenants and agrees that it
will not at any time institute against, or join any other Person in instituting
against, the Depositor or the Trust any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings or other proceedings under any federal or
state bankruptcy or similar law. This Section 10.12 shall survive the
resignation or removal of the Owner Trustee under the Trust Agreement and the
Indenture Trustee under the Indenture and shall survive the termination of the
Trust Agreement and the Indenture.

                SECTION 10.13 Limitation of Liability of Owner Trustee and
Indenture Trustee.

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

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

                SECTION 10.14 Insurer Defense Costs. Each of the Trust, the
Depositor, the Seller and the Servicer acknowledges Section 4.6 of the Trust
Agreement and agrees that the Trust shall reimburse the Insurer for all Insurer
Defense Costs pursuant to Section 4.6(d) of this Agreement and Section 2.8(a) of
the Indenture.

                            [SIGNATURE PAGES FOLLOW]

                                       58

<PAGE>

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

                                       CARMAX AUTO OWNER TRUST 2002-1

                                       By: THE BANK OF NEW YORK,
                                           not in its individual capacity but
                                           solely as Owner Trustee

                                       By: /s/ Helen Lam
                                          ---------------------------------
                                           Name:   Helen Lam
                                           Title:  Asst. Treasurer

                                       POOLED AUTO SECURITIES SHELF LLC,
                                       as Depositor

                                       By: /s/ Curtis A. Sidden, Jr.
                                          ---------------------------------
                                           Name:   Curtis A. Sidden, Jr.
                                           Title:  Vice President

                                       CARMAX AUTO SUPERSTORES, INC.,
                                       as Seller and Servicer

                                       By: /s/ Philip J. Dunn
                                          ---------------------------------
                                           Name:   Philip J. Dunn
                                           Title:  Treasurer

Accepted and agreed:

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

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

                                      S-1

<PAGE>

                                   Schedule 1
                               Receivable Schedule

                           [ON FILE WITH THE SERVICER]

<PAGE>

                                   Schedule 2
                          Location of Receivable Files

225 Chastain Meadows Court
Kennesaw, Georgia 30144

<PAGE>

                                    Exhibit A
                         Representations and Warranties

               CarMax Auto Superstores, Inc., a Virginia corporation (the
"Seller"), has made the following representations and warranties in the
Receivables Purchase Agreement dated as of June 1, 2002 (the "Receivables
Purchase Agreement") between the Seller and Pooled Auto Securities Shelf LLC, a
Delaware limited liability company (the "Depositor"). All capitalized terms used
in such representations and warranties have the respective meanings assigned to
them in the Receivables Purchase Agreement.

               (a)  Characteristics of Receivables. Each Receivable (i) has been
originated by the Seller or an Affiliate of the Seller in the ordinary course of
business in connection with the sale of a new or used motor vehicle and has been
fully and properly executed by the parties thereto, (ii) contains customary and
enforceable provisions such that the rights and remedies of the holder thereof
are adequate for realization against the collateral of the benefits of the
security, (iii) provides for level monthly payments that fully amortize the
Amount Financed by maturity (except that the period between the date of such
Receivable and the date of the first Scheduled Payment may be less than or
greater than one month and the amount of the first and last Scheduled Payments
may be less than or greater than the level payments) and yield interest at the
related APR, (iv) provides for, in the event that such Receivable is prepaid, a
prepayment that fully pays the Principal Balance of such Receivable with
interest at the related APR through the date of payment, (v) is a retail
installment sale contract substantially in the form of Exhibit E to the
Receivables Purchase Agreement, (vi) is secured by a new or used motor vehicle
that had not been repossessed as of the Cutoff Date, (vii) is a Simple Interest
Receivable, (viii) relates to an Obligor who has made at least one (1) payment
under such Receivable as of the Cutoff Date and (ix) relates to an Obligor whose
mailing address is located in any State.

               (b)  Receivable Schedule. The information set forth in the
Receivable Schedule was true and correct in all material respects as of the
opening of business on the Cutoff Date, and no selection procedures believed to
be adverse to the Depositor, the Noteholders and/or the Certificateholders were
utilized in selecting the Receivables from those retail installment sale
contracts which met the criteria contained in the Receivables Purchase
Agreement. The information set forth in the compact disk or other listing
regarding the Receivables made available to the Depositor and its assigns (which
compact disk or other listing is required to be delivered as specified herein)
is true and correct in all material respects.

               (c)  Compliance with Law. Each Receivable and the sale of the
related Financed Vehicle complied, at the time such Receivable was originated
and complies, as of the Closing Date, in all material respects with all
requirements of applicable federal, state and local laws, and regulations
thereunder, including usury laws, the Federal Truth-in-Lending Act, the Equal
Credit Opportunity Act, the Fair Credit Reporting Act, the Fair Credit Billing
Act, the Fair Debt Collection Practices Act, the Federal Trade Commission Act,
the Magnuson-Moss Warranty Act, the Federal Reserve Board's Regulations B, M and
Z, the Soldiers' and Sailors' Civil Relief Act of 1940 and state adaptations of
the National Consumer Act and the Uniform Consumer Credit Code.

                                      A-1

<PAGE>

               (d)  Binding Obligation. Each Receivable represents the genuine,
legal, valid and binding payment obligation in writing of the related Obligor,
enforceable by the holder thereof in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization,
liquidation or other similar laws affecting the enforcement of creditors' rights
generally and by general principles of equity.

               (e)  No Government Obligor. No Receivable is due from the United
States of America or any State or from any agency, department or instrumentality
of the United States of America or any State.

               (f)  Security Interest in Financed Vehicles. Immediately prior to
the transfer of the Receivables by the Seller to the Depositor, each Receivable
was secured by a valid, binding and enforceable first priority perfected
security interest in favor of the Seller in the related Financed Vehicle, which
security interest has been validly assigned by the Seller to the Depositor. The
Servicer has received, or will receive within 180 days after the Closing Date,
the original certificate of title for each Financed Vehicle (other than any
Financed Vehicle that is subject to a certificate of title statute or motor
vehicle registration law that does not require that the original certificate of
title for such Financed Vehicle be delivered to the Seller).

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

               (h)  No Waiver. No provision of any Receivable has been waived in
such a manner that such Receivable fails to meet all of the representations and
warranties made by the Seller in this Exhibit A with respect thereto.

               (i)  No Defenses. No Receivable is subject to any right of
rescission, setoff, counterclaim or defense, including the defense of usury, and
the operation of any of the terms of any Receivable, or the exercise of any
right thereunder, will not render such Receivable unenforceable in whole or in
part or subject to any right of rescission, setoff, counterclaim or defense,
including the defense of usury, and the Seller has not received written notice
of the assertion with respect to any Receivable of any such right of rescission,
setoff, counterclaim or defense.

               (j)  No Liens. To the best of the Seller's knowledge, no liens or
claims have been filed for work, labor or materials or for unpaid state or
federal taxes relating to any Financed Vehicle that are prior to, or equal or
coordinate with, the security interest in such Financed Vehicle created by the
related Receivable.

               (k)  No Default; Repossession. To the best of the Seller's
knowledge, no default, breach, violation or event permitting acceleration under
the terms of any Receivable has occurred and no continuing condition that with
notice or the lapse of time or both would constitute a default, breach,
violation or event permitting acceleration under the terms of any Receivable has
arisen, and the Seller has not waived any such event or condition.

               (l)  Title. The Seller intends that the transfer of the
Receivables contemplated by Section 2.01(a) of the Receivables Purchase
Agreement constitute a sale of the

                                      A-2

<PAGE>

Receivables from the Seller to the Depositor and that the beneficial interest
in, and title to, the Receivables not be part of the Seller's estate in the
event of the filing of a bankruptcy petition by or against the Seller under any
bankruptcy law. The Seller has not sold, transferred, assigned or pledged any
Receivable to any Person other than the Depositor. Immediately prior to the
transfer of the Receivables contemplated by Section 2.01(a) of the Receivables
Purchase Agreement, the Seller had good and marketable title to the Receivables
free and clear of any Lien, claim or encumbrance of any Person and, immediately
upon such transfer, the Depositor shall have good and marketable title to the
Receivables free and clear of any Lien, claim or encumbrance of any Person.

               (m)  Security Interest Matters. The Receivables Purchase
Agreement creates a valid and continuing "security interest" (as defined in the
Relevant UCC) in the Receivables in favor of the Depositor, which security
interest is prior to all other Liens and is enforceable as such as against
creditors of and purchasers from the Seller. With respect to each Receivable,
the Seller has taken all steps necessary to perfect its security interest
against the related Obligor in the related Financed Vehicle. The Receivables
constitute "tangible chattel paper" (as defined in the Relevant UCC). The Seller
has caused or will cause prior to the Closing Date the filing of all appropriate
financing statements in the proper filing offices in the appropriate
jurisdictions under applicable law necessary to perfect the security interest in
the Receivables granted to the Depositor under the Receivables Purchase
Agreement. Other than the security interest granted to the Depositor under the
Receivables Purchase Agreement, the Seller has not pledged, assigned, sold,
granted a security interest in or otherwise conveyed any of the Receivables. The
Seller has not authorized the filing of and is not aware of any financing
statements against the Seller that include a description of collateral covering
the Receivables other than any financing statement relating to the security
interest granted to the Depositor under the Sale and Servicing Agreement or that
has been terminated. The motor vehicle retail installment sale contracts that
constitute or evidence the Receivables do not have any marks or notations
indicating that they have been pledged, assigned or otherwise conveyed to any
Person other than the Depositor, the Trust or the Indenture Trustee. The Seller
is not aware of any judgment or tax lien filings against the Seller.

               (n)  Financing Statements. All financing statements filed or to
be filed against the Seller in favor of the Trust (as assignee of the Depositor)
contain a statement substantially to the following effect: "A purchase of or
security interest in any collateral described in this financing statement will
violate the rights of the Trust." All financing statements filed or to be filed
against the Seller in favor of the Indenture Trustee (as assignee of the Trust)
contain a statement substantially to the following effect: "A purchase of or
security interest in any collateral described in this financing statement will
violate the rights of the Indenture Trustee."

               (o)  Valid Assignment. No Receivable has been originated in, or
is subject to the laws of, any jurisdiction under which the sale, transfer,
assignment and conveyance of such Receivable under the Receivables Purchase
Agreement or the Sale and Servicing Agreement or the pledge of such Receivable
under the Indenture is unlawful, void or voidable or under which such Receivable
would be rendered void or voidable as a result of any such sale, transfer,
assignment, conveyance or pledge. The Seller has not entered into any agreement
with any account debtor that prohibits, restricts or conditions the assignment
of the Receivables.

                                      A-3

<PAGE>

               (p)   One Original. There is only one original executed copy of
each Receivable.

               (q)   Principal Balance. Each Receivable had an original
 Principal Balance of not more than $50,000 and a remaining Principal Balance as
of the Cutoff Date of not less than $500.

               (r)   No Bankrupt Obligors. As of the Cutoff Date, no Receivable
was due from an Obligor that was the subject of a proceeding under the
Bankruptcy Code of the United States or was bankrupt.

               (s)   New and Used Vehicles. As of the Cutoff Date, approximately
5.00% of the Pool Balance related to Receivables secured by new Financed
Vehicles and approximately 95.00% of the Pool Balance related to Receivables
secured by used Financed Vehicles.

               (t)   Origination. Each Receivable was originated after May 1,
1997.

               (u)   Term to Maturity. Each Receivable had an original term to
maturity of not more than 72 months and not less than 12 months and a remaining
term to maturity as of the Cutoff Date of not more than 71 months and not less
than three months.

               (v)   Weighted Average Remaining Term to Maturity. As of the
Cutoff Date, the weighted average remaining term to maturity of the Receivables
was approximately 56 months.

               (w)   Annual Percentage Rate. Each Receivable has an APR of at
least 5.00% and not more than 25.00%.

               (x)   Location of Receivable Files. The Receivable Files are
maintained at the location listed in Schedule 2 to the Sale and Servicing
Agreement.

               (y)   Simple Interest Method. All payments with respect to the
Receivables have been allocated consistently in accordance with the Simple
Interest Method.

               (z)   No Delinquent Receivables. As of the Cutoff Date, no
payment due under any Receivable was more than 30 days past due.

               (aa)  Prospectus Data. The tabular and numerical data contained
in the Prospectus relating to the characteristics of the Receivables is true and
correct in all material respects.

               (bb)  Insurance. Each Obligor has obtained or agreed to obtain
physical damage insurance (which insurance shall not be force placed insurance)
covering the related Financed Vehicle in accordance with the Seller's normal
requirements.

               (cc)  Fair Market Value. The Receivables Purchase Price and the
value of the Residual Interest represent the fair market value of the
Receivables.

                                      A-4

<PAGE>

               (dd)  Custodial Agreements. Immediately prior to the transfer of
the Receivables by the Seller to the Depositor, the Seller or an Affiliate of
the Seller had possession of the Receivable Files and there were no, and there
will not be any, custodial agreements in effect materially adversely affecting
the right or ability of the Seller to make, or cause to be made, any delivery
required under the Receivables Purchase Agreement.

               (ee)  Bulk Transfer Laws. The transfer of the Receivables and the
Receivable Files by the Seller to the Depositor pursuant to the Receivables
Purchase Agreement is not subject to the bulk transfer laws or any similar
statutory provisions in effect in any applicable jurisdiction.

                                      A-5

<PAGE>

                                    Exhibit B
                         Form of Servicer's Certificate

                                 [SEE ATTACHED]

                                      B-1

<PAGE>

                                    Exhibit C
                        Form of Statement to Noteholders

                                 [SEE EXHIBIT B]

                                      C-1

<PAGE>

                                    Exhibit D
                     Form of Statement to Certificateholders

                                 [SEE EXHIBIT B]

                                       D-1

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