Document:

<PAGE>   1
                                                                EXHIBIT 10.14.4

            AMENDMENT NO. 3 TO AMENDED AND RESTATED CREDIT AGREEMENT
                             DATED JANUARY 7, 2000

         This Amendment No. 3 dated as of January 7, 2000 ("Amendment") is
among Schweitzer-Mauduit International, Inc., a Delaware corporation ("Company"
or "Guarantor"), Schweitzer-Mauduit France S.A.R.L., a French corporation
("SMF"), PDM Industries, S.N.C., a French corporation ("PDM", together with the
Company and SMF, the "Borrowers"), the banks party hereto ("Banks") and Societe
Generale, as agent for the Banks ("Agent").

                                  INTRODUCTION

         A.       The Borrowers, the Guarantor, the Banks and the Agent are
party to the Amended and Restated Credit Agreement dated as of January 30,
1998, as amended by Amendment No. 1 dated as of January 29, 1999 and Amendment
No. 2 dated as of May 6, 1999 (as amended, the "Credit Agreement").

         B.       The Borrowers have requested that the Banks agree to (1)
extend the Maturity Date of the U.S. Revolving Commitments and the French
Revolving Commitments under the Credit Agreement from January 28, 2000 to
January 26, 2001 and (2) make certain other amendments to the Credit Agreement.

         THEREFORE, the Borrowers, the Guarantor, the Agent and the Banks
hereby agree as follows:

         Section 1. Definitions; References. Unless otherwise defined in this
Amendment, terms used in this Amendment which are defined in the Credit
Agreement shall have the meanings assigned to such terms in the Credit
Agreement.

         Section 2. Amendments. Upon the satisfaction of each of the conditions
precedent set forth in Section 4 below, the Credit Agreement is hereby amended
as follows:

         (a)      Section 1.01 of the Credit Agreement is hereby amended as
follows:

                  (i)      by deleting the date "January 28, 2000" in the
         definition of "Maturity Date" and replacing it with the date "January
         26, 2001"; and

                  (ii)     by deleting the percentage ".45%" in the definition
         of "Applicable Margin" and replacing it with the percentage ".75%".

         (b)      Section 2.03(a) of the Credit Agreement is hereby amended as
follows:

                  (i)      by deleting the percentage ".15%" and replacing it
         with the percentage ".20%"; and

<PAGE>   2

                  (ii)     by deleting the date "March 31, 1999" and replacing
         it with the date "March 31, 2000".

         (c) Section 6.09(vi) of the Credit Agreement is amended in its
entirety as follows:

                  (vi)     Debt of SMS and Schweitzer-Mauduit do Brasil S.A. in
         an aggregate principal amount not to exceed $7,500,000.

         Section 3. Representations and Warranties. The Borrowers and the
Guarantor represent and warrant to the Agent and the Banks as of the date
hereof:

         (a)      Any representations and warranties set forth in the Credit
Agreement and in the other Credit Documents (other than those made as of a
specific date) are true and correct in all material respects;

         (b)      (i) The execution, delivery and performance of this Amendment
are within the corporate power and authority of the Borrowers and the Guarantor
and have or will have been duly authorized by appropriate proceedings and (ii)
this Amendment constitutes a legal, valid, and binding obligation of the
Borrowers and the Guarantor enforceable in accordance with its terms, except as
limited by applicable bankruptcy, insolvency, reorganization, moratorium, or
similar laws affecting the rights of creditors generally and general principles
of equity;

         (c)      No Default or Event of Default has occurred and is
continuing;and

         (d)      No Potential Phaseout Event has occurred.

         Section 4. Effectiveness. This Amendment shall become effective and
the Credit Agreement shall be amended as provided in Section 2 of this
Amendment when the Agent shall have received this Amendment duly and validly
executed by the Borrowers, the Agent and the Banks.

         Section 5. Reaffirmation of Guaranty. The Company hereby reaffirms its
obligations under Article VIII of the Credit Agreement and agrees to remain
liable for the repayment of the Guaranteed Obligations (as defined therein), as
such Guaranteed Obligations have been amended hereby.

         Section 6. Choice of Law. This Amendment shall be governed by and
construed and enforced in accordance with the laws of the State of New York.

         Section 7. Counterparts. This Amendment may be signed in any number of
counterparts, each of which shall be an original.

                                     -2-
<PAGE>   3

         EXECUTED as of the date first set forth above.

                                     BORROWERS:

                                     SCHWEITZER-MAUDUIT INTERNATIONAL, INC.

                                     By:
                                        ---------------------------------------
                                     Wayne H. Deitrich
                                     Chairman and Chief Executive Officer

                                     SCHWEITZER-MAUDUIT FRANCE S.A.R.L.

                                     By:
                                        ---------------------------------------
                                     Jean-Pierre Le Hetet
                                     Gerant (Manager)

                                     PDM INDUSTRIES S.N.C.

                                     By: Papeteries de Mauduit S.A., as Manager

                                     By:
                                        ---------------------------------------
                                     Jean-Pierre Le Hetet
                                     Legal Representative

                                     GUARANTOR:

                                     SCHWEITZER-MAUDUIT INTERNATIONAL, INC.

                                     By:
                                        ---------------------------------------
                                     Wayne H. Deitrich
                                     Chairman and Chief Executive Officer

                                     AGENT:

                                     SOCIETE GENERALE

                                     By:
                                        ---------------------------------------
                                     Nicolas Guerin
                                     Vice President

                                      -3-
<PAGE>   4

                                     BANKS:

                                     SOCIETE GENERALE

                                     By:
                                        ---------------------------------------
                                     Nicolas Guerin
                                     Vice President

                                     BANQUE NATIONALE DE PARIS

                                     By:
                                        ---------------------------------------
                                     Name:
                                          -------------------------------------
                                     Title:
                                           ------------------------------------

                                     CREDIT LYONNAIS

                                     By:
                                        ---------------------------------------
                                     Name:
                                          -------------------------------------
                                     Title:
                                           ------------------------------------

                                     NATEXIS BANQUE

                                     By:
                                        ---------------------------------------
                                     Name:
                                          -------------------------------------
                                     Title:
                                           ------------------------------------

                                     By:
                                        ---------------------------------------
                                     Name:
                                          -------------------------------------
                                     Title:
                                           ------------------------------------

                                     SUNTRUST BANK, ATLANTA

                                     By:
                                        ---------------------------------------
                                     Name:
                                          -------------------------------------
                                     Title:
                                           ------------------------------------

                                     By:
                                        ---------------------------------------
                                     Name:
                                          -------------------------------------
                                     Title:
                                           ------------------------------------

                                     WACHOVIA BANK, N.A.

                                     By:
                                        ---------------------------------------
                                     Name:
                                          -------------------------------------
                                     Title:
                                           ------------------------------------

                                      -4-<PAGE>   1
================================================================================

                                                                   EXHIBIT 4.1.1

                              AMENDED AND RESTATED
                                TRUST AGREEMENT

                                      among

                         WFS FINANCIAL AUTO LOANS, INC.,

                             WFS INVESTMENTS, INC.,

                        FINANCIAL SECURITY ASSURANCE INC.

                                       and

                         CHASE MANHATTAN BANK DELAWARE,
                                as Owner Trustee

                            Dated__________ __, 20__

================================================================================

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                          Page
                                   ARTICLE ONE
                                   DEFINITIONS
<S>          <C>                                                                            <C>
Section 1.01. Capitalized Terms..........................................................    1
Section 1.02. Other Definitional Provisions..............................................    4
Section 1.03. Usage of Terms.............................................................    4
Section 1.04. Section References.........................................................    5
Section 1.05. Accounting Terms...........................................................    5

                                   ARTICLE TWO
                                  ORGANIZATION

Section 2.01. Name.......................................................................    6
Section 2.02. Office.....................................................................    6
Section 2.03. Purposes and Powers........................................................    6
Section 2.04. Appointment of Owner Trustee...............................................    7
Section 2.05. Initial Capital Contribution of Owner Trust Estate.........................    7
Section 2.06. Declaration of Trust.......................................................    7
Section 2.07. Title to Trust Property....................................................    7
Section 2.08. Situs of Trust.............................................................    7
Section 2.09. Representations and Warranties of the Depositors...........................    8
Section 2.10. Federal Income Tax Allocations.............................................   10

                                  ARTICLE THREE
                  TRUST CERTIFICATES AND TRANSFER OF INTERESTS

Section 3.01. Initial Ownership..........................................................   11
Section 3.02. The Trust Certificates.....................................................   11
Section 3.03. Authentication and Delivery of Trust Certificates..........................   11
Section 3.04. Registration of Transfer and Exchange of Trust Certificates................   11
Section 3.05. Mutilated, Destroyed, Lost or Stolen Trust Certificates....................   13
Section 3.06. Persons Deemed Owners......................................................   13
Section 3.07. Access to List of Certificateholders' Names and Addresses..................   13
Section 3.08. Maintenance of Office or Agency............................................   13
Section 3.09. Temporary Trust Certificates...............................................   14
Section 3.10. Appointment of Paying Agent................................................   14
</TABLE>

                                      (i)

<PAGE>   3

<TABLE>
<CAPTION>

<S>          <C>                                                                            <C>
Section 3.11. Ownership by the Company of Trust Certificates.............................   15

                                  ARTICLE FOUR
                            ACTIONS BY OWNER TRUSTEE

Section 4.01. Prior Notice to Owners with Respect to Certain Matters.....................   17
Section 4.02. Action by Owners with Respect to Certain Matters...........................   17
Section 4.03. Action by Owners with Respect to Bankruptcy................................   18
Section 4.04. Restrictions on Owners' Power..............................................   18
Section 4.05. Majority Control...........................................................   18

                                  ARTICLE FIVE
                   APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

Section 5.01. Establishment of Trust Account.............................................   19
Section 5.02. Application of Trust Funds.................................................   19
Section 5.03. Method of Payment..........................................................   20
Section 5.04. No Segregation of Monies; No Interest......................................   20
Section 5.05. Accounting and Reports to the Noteholders, Owners, the Internal Revenue
              Service and Others.........................................................   20
Section 5.06. Signature on Returns; Tax Matters Partner..................................   20

                                   ARTICLE SIX
                      AUTHORITY AND DUTIES OF OWNER TRUSTEE

Section 6.01. General Authority..........................................................   21
Section 6.02. General Duties.............................................................   21
Section 6.03. Action Upon Instruction....................................................   21
Section 6.04. No Duties Except as Specified in this Agreement or in Instructions.........   22
Section 6.05. No Action Except Under Specified Documents or Instructions.................   22
Section 6.06. Restrictions...............................................................   23

                                  ARTICLE SEVEN
                          CONCERNING THE OWNER TRUSTEE

Section 7.01. Acceptance of Trusts and Duties............................................   24
Section 7.02. Furnishing of Documents....................................................   25
Section 7.03. Representations and Warranties.............................................   25
Section 7.04. Reliance; Advice of Counsel................................................   25
Section 7.05. Not Acting in Individual Capacity..........................................   26
</TABLE>

                                      (ii)

<PAGE>   4

<TABLE>
<CAPTION>

<S>          <C>                                                                            <C>
Section 7.06. Owner Trustee Not Liable for Trust Certificates, Notes or Contracts........   26
Section 7.07. Owner Trustee May Own Trust Certificates and Notes.........................   27
Section 7.08. Pennsylvania Motor Vehicle Sales Finance Act Licenses......................   27

                                  ARTICLE EIGHT
                          COMPENSATION OF OWNER TRUSTEE

Section 8.01. Owner Trustee's Fees and Expenses..........................................   28
Section 8.02. Indemnification............................................................   28
Section 8.03. Payments to the Owner Trustee..............................................   28

                                  ARTICLE NINE
                         TERMINATION OF TRUST AGREEMENT

Section 9.01. Termination of Trust Agreement.............................................   29

                                   ARTICLE TEN
                    SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

Section 10.01. Eligibility Requirements for Owner Trustee................................   31
Section 10.02. Resignation or Removal of Owner Trustee...................................   31
Section 10.03. Successor Owner Trustee...................................................   32
Section 10.04. Merger or Consolidation of Owner Trustee..................................   32
Section 10.05. Appointment of Co-Trustee or Separate Trustee.............................   32

                                 ARTICLE ELEVEN
                                  MISCELLANEOUS

Section 11.01. Supplements and Amendments................................................   34
Section 11.02. No Legal Title to Trust Estate in Owners..................................   35
Section 11.03. Limitations on Rights of Others...........................................   35
Section 11.04. Notices...................................................................   35
Section 11.05. Severability of Provisions................................................   36
Section 11.06. Counterparts..............................................................   36
Section 11.07. Successors and Assigns....................................................   36
Section 11.08. No Petition...............................................................   36
Section 11.09. No Recourse...............................................................   36
Section 11.10. Certificates Nonassessable and Fully Paid.................................   37
Section 11.11. Headings..................................................................   37
Section 11.12. Governing Law.............................................................   37
</TABLE>

                                     (iii)

<PAGE>   5

<TABLE>
<CAPTION>

<S>          <C>                                                                            <C>
Section 11.13. Depositor Payment Obligation..............................................   37
Section 11.14. Insurer Default or Insolvency.............................................   37

                                    EXHIBITS

Exhibit A - Form of Certificate of Trust.................................................  A-1
Exhibit B - Form of Trust Certificate....................................................  B-1
</TABLE>

                                      (iv)

<PAGE>   6

        This AMENDED AND RESTATED TRUST AGREEMENT, dated __________ __, 20__, is
among WFS FINANCIAL AUTO LOANS, INC., a California corporation (the
"Depositor"), WFS INVESTMENTS, INC., a California corporation (the "Company"),
FINANCIAL SECURITY ASSURANCE INC., a New York corporation ("Financial
Security"), and CHASE MANHATTAN BANK DELAWARE, a Delaware corporation, as owner
trustee (the "Owner Trustee").

        WHEREAS, in connection herewith, the Depositor is willing to assume
certain obligations pursuant hereto;

        WHEREAS, in connection herewith, the Company is willing to purchase the
Company Trust Certificate (as defined herein) to be issued pursuant hereto and
to assume certain obligations pursuant hereto; and

        WHEREAS, Financial Security is willing to issue a financial guaranty
insurance policy in respect of certain payments made on the Trust Certificates
to be issued pursuant hereto;

        NOW, THEREFORE, the parties hereto hereby agree as follows:

                                   ARTICLE ONE

                                   DEFINITIONS

        Section 1.01. Capitalized Terms. Except as otherwise provided in this
Agreement, whenever used in this Agreement the following words and phrases,
unless the context otherwise requires, shall have the following meanings:

        "Administration Agreement" means the administration agreement, dated as
of __________ __, 20__, among the Trust, the Company, the Depositor, the
Indenture Trustee and WFS, as administrator.

        "Agreement" means this Trust Agreement, as the same may be amended and
supplemented from time to time.

        "Applicants" shall have the meaning assigned to such term in Section
3.07.

        "Benefit Plan" means (i) an employee benefit plan (as such term is
defined in Section 3(3) of ERISA) that is subject to the provisions of Title I
of ERISA, (ii) a plan described in Section 4975(e)(1) of the Code or (iii) any
entity whose underlying assets include plan assets by reason of a plan's
investment in the entity.

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

        "Certificate Distribution Account" means the account established and
maintained as such pursuant to Section 5.01.

<PAGE>   7

        "Certificate Percentage Interest" has the meaning set forth in the Sale
and Servicing Agreement.

        "Certificate of Trust" means the Certificate of Trust filed for the
Trust pursuant to Section 3810(a) of the Business Trust Statute, substantially
in the form of Exhibit B hereto.

        "Certificate Register" and "Certificate Registrar" mean the register
maintained and the registrar (or any successor thereto) appointed pursuant to
Section 3.04.

        "Certificateholder" or "Holder" means the Person in whose name a Trust
Certificate is registered in the Certificate Register, except that, solely for
the purposes of giving any consent, waiver, request or demand pursuant to this
Agreement or the other Basic Documents, the interest evidenced by any Trust
Certificate registered in the name of the Depositor, the Company, WFS or any of
their respective Affiliates shall not be taken into account in determining
whether the requisite percentage necessary to effect such consent, waiver,
request or demand in respect of the Trust Certificates shall have been obtained.

        "Closing Date" means __________ __, 20__.

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

        "Company" means WFS Investments, Inc., a California corporation, in its
capacity as Owner of the Company Trust Certificate hereunder, and its
successors.

        "Company Trust Certificate" means the Trust Certificate purchased by the
Company on the Closing Date pursuant to Section 3.11, having an initial
principal balance equal to $------.

        "Depositor" means WFS Financial Auto Loans, Inc. in its capacity as
depositor hereunder, and its successors.

        "DTC" means The Depository Trust Company, and its successors.

        "ERISA" means the Employment Retirement Income Security Act of 1974, as
amended.

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

        "Expenses" shall have the meaning assigned to such term in Section 8.02.

        "Indemnified Parties" shall have the meaning assigned to such term in
Section 8.02.

        "Indenture" means the indenture dated as of __________ __, 20__, among
the Trust and Bankers Trust Company, as Indenture Trustee.

        "Instructing Party" shall have the meaning assigned to such term in
Section 6.03(a).

        "Insurer" means Financial Security Assurance, Inc., and its successors.

                                       2
<PAGE>   8

        "Notes" means the Class A-1 Notes, the Class A-2 Notes and the Class A-3
Notes, in each case issued pursuant to the Indenture.

        "Owner" means each Holder of a Trust Certificate.

        "Owner Trustee" means Chase Manhattan Bank Delaware, a Delaware banking
corporation, not in its individual capacity but solely as owner trustee under
this Agreement, and any successor Owner Trustee hereunder.

        "Owner Trustee Corporate Trust Office" means the office of the Owner
Trustee at which its corporate trust business shall be administered, which
initially shall be Chase Manhattan Bank Delaware, 1201 Market Street,
Wilmington, Delaware 19801, Attention: Corporate Trust Administration
Department, with a copy to The Chase Manhattan Bank, 450 West 33rd Street, 15th
Floor, New York, New York 10001, Attention: Structured Finance Services (ABS),
or such other office at such other address as the Owner Trustee may designate
from time to time by notice to the Certificateholders, the Master Servicer, the
Depositor, the Company and the Insurer. The foregoing address of The Chase
Manhattan Bank shall be its address for purposes of its acting as Certificate
Registrar and as agent of the Owner Trustee pursuant to Sections 3.04 and 3.08,
or such other office at such other address as the Owner Trustee may designate
from time to time by notice to the Certificateholders, the Master Servicer, the
Depositor, the Company and the Insurer.

        "Paying Agent" means any paying agent or co-paying agent appointed
pursuant to Section 3.10.

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

        "Record Date" means, with respect to any Distribution Date, the day
immediately preceding such Distribution Date or, if Definitive Trust
Certificates are issued, the 15th day of the month preceding the month in which
such Distribution Date occurs.

        "Sale and Servicing Agreement" means the sale and servicing agreement,
dated as of __________ __, 20__, among the Trust, as Issuer, the Depositor, as
Seller and WFS, as Master Servicer, as the same may be amended or supplemented
from time to time.

        "Secretary of State" means the Secretary of State of the State of
Delaware.

        "Seller" means WFS Financial Auto Loans, Inc., in its capacity as seller
under the Sale and Servicing Agreement, and its successors.

        "Treasury Regulations" means regulations, including proposed or
temporary regulations, promulgated under the Code. References herein to specific
provisions of proposed or temporary regulations shall include analogous
provisions of final Treasury Regulations or other successor Treasury
Regulations.

        "Trust" means the trust established by this Agreement.

                                       3
<PAGE>   9

        "Trust Certificates" means the trust certificates evidencing the
beneficial interest of an Owner in the Trust, substantially in the form of
Exhibit C hereto.

        "Trust Estate" means all right, title and interest of the Trust in and
to the property and rights assigned to the Trust pursuant to Article Two of the
Sale and Servicing Agreement, all funds on deposit from time to time in the
Trust Accounts and all other property of the Trust from time to time, including
any rights of the Owner Trustee and the Trust pursuant to the Sale and Servicing
Agreement and the Administration Agreement.

        "Underwriters" means Banc of America Securities LLC, Donaldson, Lufkin &
Jenrette Securities Corporation and Credit Suisse First Boston Corporation.

        "WFS" means WFS Financial Inc, and its successors.

        Section 1.02. Other Definitional Provisions. Capitalized terms used that
are not otherwise defined herein shall have the meanings ascribed thereto in the
Sale and Servicing Agreement or, if not defined therein, in the Indenture.

        Section 1.03. Usage of Terms. With respect to all terms in this
Agreement, the singular includes the plural and the plural the singular; words
importing any gender include the other genders; references to "writing" include
printing, typing, lithography and other means of reproducing words in a visible
form; references to agreements and other contractual instruments include all
amendments, modifications and supplements thereto or any changes therein entered
into in accordance with their respective terms and not prohibited by this
Agreement; references to Persons include their permitted successors and assigns;
and the term "including" means "including without limitation".

        Section 1.04. Section References. All section references, unless
otherwise indicated, shall be to Sections in this Agreement.

        Section 1.05. Accounting Terms. All accounting terms used but not
specifically defined herein shall be construed in accordance with generally
accepted accounting principles in the United States.

                                       4
<PAGE>   10

                                   ARTICLE TWO

                                  ORGANIZATION

        Section 2.01. Name. The Trust created hereby shall be known as "WFS
Financial 20__-_ Owner Trust", in which name the Owner Trustee may conduct the
activities of the Trust, make and execute contracts and other instruments on
behalf of the Trust and sue and be sued.

        Section 2.02. Office. The office of the Trust shall be in care of the
Owner Trustee at the Owner Trustee Corporate Trust Office or at such other
address in Delaware as the Owner Trustee may designate by written notice to the
Owners, the Depositor and the Insurer.

        Section 2.03. Purposes and Powers.

        (a) The sole purpose of the Trust is to conserve the Trust Estate and
collect and disburse the periodic income therefrom for the use and benefit of
the Owners, and in furtherance of such purpose to engage in the following
ministerial activities:

               (i) to issue the Notes pursuant to the Indenture and the Trust
        Certificates pursuant to this Agreement and to sell the Notes;

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

               (iii) to Grant the Trust Estate pursuant to the Indenture and to
        hold, manage and distribute to the Owners pursuant to the Sale and
        Servicing Agreement any portion of the Trust Estate released from the
        Lien of, and remitted to the Trust pursuant to, the Indenture;

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

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

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

        The Trust shall not engage in any activities other than in connection
with the foregoing. Nothing contained herein shall be deemed to authorize the
Owner Trustee, on behalf of the Trust, to engage in any business operations or
any activities other than those set forth in the introductory sentence of this
Section. Specifically, the Owner Trustee, on behalf of the Trust, shall have no
authority to engage in any business operations, acquire any assets other than
those specifically included in the Trust Estate under Section 1.01 or otherwise
vary the assets held by

                                       5
<PAGE>   11

the Trust. Similarly, the Owner Trustee shall have no discretionary duties other
than performing those ministerial acts set forth above necessary to accomplish
the purpose of the Trust as set forth in the introductory sentence of this
Section.

        Section 2.04. Appointment of Owner Trustee. The Depositor hereby
appoints the Owner Trustee as trustee of the Trust effective as of the date
hereof, to have all the rights, powers and duties set forth herein, and the
Owner Trustee hereby accepts such appointment.

        Section 2.05. Initial Capital Contribution of Owner Trust Estate. The
Depositor hereby sells, assigns, transfers, conveys and sets over to the Owner
Trustee, as of the date hereof, the sum of $1.00. The Owner Trustee hereby
acknowledges receipt in trust from the Depositor, as of the date hereof, of the
foregoing contribution, which shall constitute the initial Trust Estate and
shall be deposited in the Certificate Distribution Account. The Depositor shall
pay organizational expenses of the Trust as they may arise or shall, upon the
request of the Owner Trustee, promptly reimburse the Owner Trustee for any such
expenses paid by the Owner Trustee.

        Section 2.06. Declaration of Trust. The Owner Trustee hereby declares
that it will hold the Trust Estate in trust upon and subject to the conditions
set forth herein for the sole purpose of conserving the Trust Estate and
collecting and disbursing the periodic income therefrom for the use and benefit
of the Owners, subject to the obligations of the Trust under the Basic
Documents. It is the intention of the parties hereto that the Trust constitute a
business trust under the Business Trust Statute and that this Agreement
constitute the governing instrument of such business trust. It is the intention
of the parties hereto that, solely for income and franchise tax purposes, the
Trust shall be treated as a partnership, with the assets of the partnership
being the Contracts and other assets held by the Trust and with the partners of
the partnership being the Certificateholders (including the Company and the
Seller as the recipient of certain excess cash flows as provided in Section 5.05
of the Sale and Servicing Agreement) and the Notes being debt of the
partnership. The parties agree that, unless otherwise required by appropriate
tax authorities, the Trust will file or cause to be filed annual or other
necessary returns, reports and other forms consistent with the characterization
of the Trust as a partnership for such tax purposes. Effective as of the date
hereof, the Owner Trustee shall have all rights, powers and duties set forth
herein and in the Business Trust Statute for the sole purpose and to the extent
necessary to accomplish the purpose of the Trust as set forth in the
introductory sentence of Section 2.03.

        Section 2.07. Title to Trust Property. Legal title to the Trust Estate
shall be vested at all times in the Trust as a separate legal entity except
where applicable law in any jurisdiction requires title to any part of the Trust
Estate to be vested in a trustee or trustees, in which case title shall be
deemed to be vested in the Owner Trustee, a co-trustee and/or a separate
trustee, as the case may be.

        Section 2.08. Situs of Trust. The Trust will be located and administered
in the State of Delaware. All bank accounts maintained by the Owner Trustee on
behalf of the Trust shall be located in the State of California, the State of
Delaware or the State of New York. The Trust shall not have any employees in any
state other than Delaware; provided, however, that nothing herein shall restrict
or prohibit the Owner Trustee from having employees within or without the State
of Delaware. Payments will be received by the Trust only in Delaware or New York
and

                                       6
<PAGE>   12

payments will be made by the Trust only from Delaware or New York. The only
office of the Trust will be at the Owner Trustee Corporate Trust Office.

        Section 2.09. Representations and Warranties of the Depositor and the
Company.

        (a) The Depositor hereby represents and warrants to the Owner Trustee
and the Insurer that:

               (i) The Depositor is duly organized and validly existing as a
        corporation organized and existing and in good standing under the laws
        of the State of California, with power and authority to own its
        properties and to conduct its business and had at all relevant times,
        and has, power, authority and legal right to acquire and own the
        Contracts.

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

               (iii) The Depositor has the power and authority to execute and
        deliver this Agreement and to carry out its terms; the Depositor has
        full power and authority to sell and assign the property to be sold and
        assigned to and deposited with the Owner Trustee on behalf of the Trust
        as part of the Trust Estate and has duly authorized such sale and
        assignment and deposit with the Owner Trustee on behalf of the Trust by
        all necessary corporate action; and the execution, delivery and
        performance of this Agreement have been duly authorized by the Depositor
        by all necessary corporate action.

               (iv) The consummation of the transactions contemplated by this
        Agreement and the fulfillment of the terms hereof do not conflict with,
        result in the breach of any of the terms and provisions of, nor
        constitute (with or without notice or lapse of time) a default under,
        the articles of incorporation or bylaws of the Depositor, or any
        indenture, agreement or other instrument to which the Depositor is a
        party or by which it is bound; nor result in the creation or imposition
        of any Lien upon any of the properties of the Depositor pursuant to the
        terms of any such indenture, agreement or other instrument (other than
        pursuant to the Basic Documents); nor violate any law or any order, rule
        or regulation applicable to the Depositor of any court or of any federal
        or state regulatory body, administrative agency or other governmental
        instrumentality having jurisdiction over the Depositor or its
        properties.

               (v) There are no proceedings or investigations pending, or to the
        Depositor's best knowledge threatened, before any court, regulatory
        body, administrative agency or other governmental instrumentality having
        jurisdiction over the Depositor or its properties (A) asserting the
        invalidity of this Agreement, any of the other Basic Documents or the
        Trust Certificates, (B) seeking to prevent the issuance of the Trust
        Certificates or the consummation of any of the transactions contemplated
        by this Agreement or any of the other Basic Documents, (C) seeking any
        determination or ruling that might materially and adversely affect the
        performance by the Depositor of its obligations under, or the validity
        or enforceability of, this Agreement, any of the other

                                       7
<PAGE>   13

        Basic Documents or the Trust Certificates or (D) involving the Depositor
        and which might adversely affect the federal income tax or other
        federal, state or local tax attributes of the Trust Certificates.

        (b) The Company hereby represents and warrants to the Owner Trustee and
the Insurer that:

               (i) The Company is duly organized and validly existing as a
        corporation organized and existing and in good standing under the laws
        of the State of California, with power and authority to own its
        properties and to conduct its business and had at all relevant times,
        and has, power, authority and legal right to acquire and own the
        Contracts.

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

               (iii) The Company has the power and authority to execute and
        deliver this Agreement and to carry out its terms; and the execution,
        delivery and performance of this Agreement have been duly authorized by
        the Company by all necessary corporate action.

               (iv) The consummation of the transactions contemplated by this
        Agreement and the fulfillment of the terms hereof do not conflict with,
        result in any breach of any of the terms and provisions of, nor
        constitute (with or without notice or lapse of time) a default under,
        the articles of incorporation or bylaws of the Company, or any
        indenture, agreement or other instrument to which the Company is a party
        or by which it is bound; nor result in the creation or imposition of any
        Lien upon any of the properties of the Company pursuant to the terms of
        any such indenture, agreement or other instrument (other than pursuant
        to the Basic Documents); nor violate any law or any order, rule or
        regulation applicable to the Company of any court or of any federal or
        state regulatory body, administrative agency or other governmental
        instrumentality having jurisdiction over the Company or its properties.

               (v) There are no proceedings or investigations pending, or to the
        Company's best knowledge threatened, before any court, regulatory body,
        administrative agency or other governmental instrumentality having
        jurisdiction over the Company or its properties (A) asserting the
        invalidity of this Agreement, any of the other Basic Documents or the
        Trust Certificates, (B) seeking to prevent the issuance of the Trust
        Certificates or the consummation of any of the transactions contemplated
        by this Agreement or any of the other Basic Documents, (C) seeking any
        determination or ruling that might materially and adversely affect the
        performance by the Company of its obligations under, or the validity or
        enforceability of, this Agreement, any of the other Basic Documents or
        the Trust Certificates or (D) involving the Company and which might
        adversely affect the federal income tax or other federal, state or local
        tax attributes of the Trust Certificates.

                                       8
<PAGE>   14

        Section 2.10. Federal Income Tax Allocations.

        (a) Net income of the Trust for any calendar quarter as determined for
federal income tax purposes (and each item of income, gain, loss and deduction
entering into the computation thereof) shall be allocated among the
Certificateholders as of the first day following the end of such quarter, in
proportion to their Certificate Percentage Interest in the Trust Certificates on
such date,

        (b) Net losses of the Trust, if any, for any calendar quarter as
determined for federal income tax purposes (and each item of income, gain, loss
and deduction entering into the computation thereof) shall be allocated to the
Certificateholders in proportion to their Certificate Percentage Interest as of
the first day following the end of such quarter in proportion to their ownership
of the principal amount of Trust Certificates on such day. The
Certificateholders are authorized to modify the allocations in this paragraph if
necessary or appropriate, in their sole discretion, for the allocations to
fairly reflect the income, gain, loss and deduction to the Depositor and the
Company or to the Certificateholders, or as otherwise required by the Code.

                                       9
<PAGE>   15

                                  ARTICLE THREE

                  TRUST CERTIFICATES AND TRANSFER OF INTERESTS

        Section 3.01. Initial Ownership. Upon the formation of the Trust by the
contribution by the Depositor pursuant to Section 2.05 and until the issuance of
the Trust Certificates, the Depositor shall be the sole beneficiary of the
Trust.

        Section 3.02. The Trust Certificates. The Trust Certificates shall be
substantially in the form of Exhibit B hereto. The Trust Certificates shall be
executed by the Owner Trustee on behalf of the Trust by manual or facsimile
signature of an authorized officer of the Owner Trustee and attested on behalf
of the Owner Trustee by the manual or facsimile signature of an authorized
officer of the Owner Trustee and shall be deemed to have been validly issued
when so executed. Trust Certificates bearing the manual or facsimile signatures
of individuals who were, at the time when such signatures were affixed,
authorized to sign on behalf of the Owner Trustee shall be valid and binding
obligations of the Trust, notwithstanding that such individuals or any of them
have ceased to be so authorized prior to the authentication and delivery of such
Trust Certificates or did not hold such offices at the date of such Trust
Certificates. All Trust Certificates shall be dated the date of their
authentication.

        Section 3.03. Authentication and Delivery of Trust Certificates. The
Owner Trustee shall cause to be authenticated and delivered upon the order of
the Depositor, in exchange for the Contracts and the other assets of the Trust,
simultaneously with the sale, assignment and transfer to the Trust of the
Contracts, and the constructive delivery to the Owner Trustee of the Contract
Files and the other assets of the Trust, Trust Certificates duly authenticated
by the Owner Trustee evidencing the entire ownership of the Trust and Notes
issued by the Owner Trustee and authenticated by the Indenture Trustee in
aggregate principal amount of, in the case of the (i) Class A-1 Notes, $______,
(ii) Class A-2 Notes, $______ and (iii) Class A-3 Notes, $______. No Trust
Certificate shall be entitled to any benefit under this Agreement, or be valid
for any purpose, unless there appears on such Trust Certificate a certificate of
authentication substantially in the form set forth in the form of Trust
Certificate attached hereto as Exhibit C, executed by the Owner Trustee or its
authenticating agent, by manual signature, and such certificate upon any Trust
Certificate shall be conclusive evidence, and the only evidence, that such Trust
Certificate has been duly authenticated and delivered hereunder. The provisions
of Sections 7.01, 7.03, 7.04 and 8.01 shall apply to any authenticating agent
hereunder. Upon issuance, authentication and delivery pursuant to the terms
hereof, the Trust Certificates will be entitled to the benefits of this
Agreement.

        Section 3.04. Registration of Transfer and Exchange of Trust
Certificates.

        (a) The Certificate Registrar shall keep or cause to be kept, a
Certificate Register, subject to such reasonable regulations as it may
prescribe. The Certificate Register shall provide for the registration of Trust
Certificates and transfers and exchanges of Trust Certificates as provided
herein. The Chase Manhattan Bank, 450 West 33rd Street, 15th Floor, New York,
New York 10001, Attention: Structured Finance Services (ABS) as agent for the
Owner Trustee, is hereby initially appointed Certificate Registrar for the
purpose of registering Trust Certificates and transfers and exchanges of Trust
Certificates as herein provided. In the event that,

                                       10
<PAGE>   16

subsequent to the Closing Date, the Owner Trustee notifies the Master Servicer
that The Chase Manhattan Bank is unable to act as Certificate Registrar, the
Master Servicer shall appoint another bank or trust company, having an office or
agency located in The City of New York, agreeing to act in accordance with the
provisions of this Agreement applicable to it, and otherwise acceptable to the
Owner Trustee, to act as successor Certificate Registrar hereunder. The
provisions of Sections 7.01, 7.03, 7.04 and 8.01 shall apply to any Certificate
Registrar hereunder.

        (b) Upon surrender for registration of transfer of any Trust Certificate
at the office of the Certificate Registrar, the Owner Trustee shall execute,
authenticate and deliver (or shall cause its authenticating agent to
authenticate and deliver), in the name of the designated transferee or
transferees, one or more new Trust Certificates in authorized denominations of
like Certificate Percentage Interest.

        (c) At the option of a Certificateholder, Trust Certificates may be
exchanged for other Trust Certificates in authorized denominations of a like
aggregate principal amount, upon surrender of the Trust Certificates to be
exchanged at the office of the Certificate Registrar. Whenever any Trust
Certificates are so surrendered for exchange, the Owner Trustee on behalf of the
Trust shall execute, authenticate and deliver (or shall cause its authenticating
agent to authenticate and deliver) the Trust Certificates that the
Certificateholder making the exchange is entitled to receive. Every Trust
Certificate presented or surrendered for registration of transfer or exchange
shall be accompanied by a written instrument of transfer in form satisfactory to
the Owner Trustee and the Certificate Registrar duly executed by the Holder
thereof or his attorney duly authorized in writing.

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

        (e) The Trust Certificates may not be acquired by or for the account of
a Benefit Plan. By accepting and holding a Trust Certificate or a beneficial
interest therein, the Holder or any Certificateholder thereof shall be deemed to
have represented and warranted that it is not a Benefit Plan nor will it hold
such Trust Certificate or a beneficial interest therein for the account of a
Benefit Plan.

        (f) All Trust Certificates surrendered for registration of transfer or
exchange, if surrendered to the Company or any agent of the Owner Trustee or the
Company under this Agreement, shall be delivered to the Owner Trustee and
promptly cancelled by it, or, if surrendered to the Owner Trustee, shall be
promptly cancelled by it, and no Trust Certificates shall be issued in lieu
thereof except as expressly permitted by any of the provisions of this
Agreement. The Owner Trustee shall dispose of cancelled Trust Certificates in
accordance with the normal industry practice.

        Section 3.05. Mutilated, Destroyed, Lost or Stolen Trust Certificates.
If (i) any mutilated Trust Certificate is surrendered to the Certificate
Registrar, or the Certificate Registrar receives evidence to its satisfaction of
the destruction, loss or theft of any Trust Certificate, and (ii) there

                                       11
<PAGE>   17

is delivered to the Certificate Registrar and the Owner Trustee such security or
indemnity as may be required by them to save each of them harmless, then, in the
absence of notice that such Trust Certificate has been acquired by a protected
purchaser, the Owner Trustee on behalf of the Trust shall execute and the Owner
Trustee or its authenticating agent shall authenticate and deliver, in exchange
for or in lieu of any such mutilated, destroyed, lost or stolen Trust
Certificate, a new Trust Certificate of like tenor and fractional undivided
interest. In connection with the issuance of any new Trust Certificate under
this Section, the Owner Trustee may require the payment by the Holder of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto. Any duplicate Trust Certificate issued pursuant to this
Section shall constitute complete and indefeasible evidence of ownership in the
Trust, as if originally issued, whether or not the lost, stolen or destroyed
Trust Certificate shall be found at any time.

        Section 3.06. Persons Deemed Owners. Prior to due presentation of a
Trust Certificate for registration of transfer, the Owner Trustee, the
Certificate Registrar, any Paying Agent and any of their respective agents may
treat the Person in whose name any Trust Certificate is registered as the owner
of such Trust Certificate for the purpose of receiving distributions pursuant to
Section 5.02 and for all other purposes whatsoever, and none of the Owner
Trustee, the Certificate Registrar, any Paying Agent or any of their respective
agents shall be affected by any notice to the contrary.

        Section 3.07. Access to List of Certificateholders' Names and Addresses.
The Owner Trustee shall furnish or cause to be furnished to the Master Servicer,
the Insurer and the Depositor, within 15 days after receipt by the Certificate
Registrar of a written request therefor from the Master Servicer, the
Certificateholders, the Insurer or the Depositor, a list, in such form as the
Master Servicer or the Depositor may reasonably require, of the names and
addresses of the Certificateholders as of the most recent Record Date. If three
or more Certificateholders, or one or more Holders of Trust Certificates
evidencing not less than 25% of the percentage interests of the Trust
Certificates (hereinafter referred to as "Applicants"), apply in writing to the
Owner Trustee, and such application states that the Applicants desire to
communicate with other Certificateholders with respect to their rights hereunder
or under the Trust Certificates and such application is accompanied by a copy of
the communication that such Applicants propose to transmit, then the Owner
Trustee shall, within five Business Days after the receipt of such application,
afford such Applicants access, during normal business hours, to the current list
of Certificateholders. Every Certificateholder, by receiving and holding a Trust
Certificate, agrees with the Master Servicer, the Depositor and the Owner
Trustee that none of the Master Servicer, the Depositor or the Owner Trustee
shall be held accountable by reason of the disclosure of any such information as
to the names and addresses of the Certificateholders hereunder, regardless of
the source from which such information was derived.

        Section 3.08. Maintenance of Office or Agency. The Chase Manhattan Bank,
as agent for the Owner Trustee, shall maintain in the Borough of Manhattan, The
City of New York, an office or offices or agency or agencies where Trust
Certificates may be surrendered for registration of transfer or exchange and
where notices and demands to or upon the Owner Trustee in respect of the Trust
Certificates and the Basic Documents may be served. The Owner Trustee hereby
designates the office of The Chase Manhattan Bank at the address provided under
the definition of the term "Owner Trustee Corporate Trust Office" as its office
for such purposes. The Owner Trustee shall give prompt written notice to the
Depositor, the Master Servicer and to

                                       12
<PAGE>   18

Certificateholders of any change in the location of the Certificate Register or
any such office or agency.

        Section 3.09. Temporary Trust Certificates. Pending the preparation of
definitive Trust Certificates, the Owner Trustee, on behalf of the Trust, may
execute, authenticate and deliver, temporary Trust Certificates that are
printed, lithographed, typewritten, mimeographed or otherwise produced, in any
authorized denomination, substantially of the tenor of the definitive Trust
Certificates in lieu of which they are issued. If temporary Trust Certificates
are issued, the Depositor will cause definitive Trust Certificates to be
prepared without unreasonable delay. After the preparation of definitive Trust
Certificates, the temporary Trust Certificates shall be exchangeable for
definitive Trust Certificates upon surrender of the temporary Trust Certificates
at the office or agency to be maintained as provided in Section 3.08, without
charge to the Holder. Upon surrender for cancellation of any one or more
temporary Trust Certificates, the Owner Trustee shall execute and authenticate
and deliver in exchange therefor a like principal amount of definitive Trust
Certificates in authorized denominations. Until so exchanged, the temporary
Trust Certificates shall in all respects be entitled to the same benefits
hereunder as definitive Trust Certificates.

        Section 3.10. Appointment of Paying Agent. The Paying Agent shall make
distributions to Certificateholders from the Certificate Distribution Account
pursuant to Section 5.02(a) and shall report the amounts of such distributions
to the Owner Trustee. Any Paying Agent shall have the revocable power to
withdraw funds from the Certificate Distribution Account for the purpose of
making the distributions referred to above. The Owner Trustee may revoke such
power and remove the Paying Agent if the Owner Trustee determines in its sole
discretion that the Paying Agent shall have failed to perform its obligations
under this Agreement in any material respect. The Paying Agent initially shall
be The Chase Manhattan Bank and any co-paying agent chosen by the Paying Agent
that is acceptable to the Owner Trustee. Each Paying Agent shall be permitted to
resign as Paying Agent upon 30 days' written notice to the Owner Trustee. In the
event that The Chase Manhattan Bank shall no longer be the Paying Agent, the
Owner Trustee shall appoint a successor to act as Paying Agent (which shall be a
bank or trust company). The Owner Trustee shall cause such successor Paying
Agent or any additional Paying Agent appointed by the Owner Trustee to execute
and deliver to the Owner Trustee an instrument in which such successor Paying
Agent or additional Paying Agent shall agree with the Owner Trustee that, as
Paying Agent, such successor Paying Agent or additional Paying Agent will hold
all sums, if any, held by it for payment to the Certificateholders in trust for
the benefit of the Certificateholders entitled thereto until such sums shall be
paid to such Certificateholders. The Paying Agent shall return all unclaimed
funds to the Owner Trustee and upon removal of a Paying Agent such Paying Agent
shall also return all funds in its possession to the Owner Trustee. The
provisions of Sections 7.01, 7.03, 7.04 and 8.01 shall apply to the Owner
Trustee also in its role as Paying Agent, for so long as the Owner Trustee shall
act as Paying Agent and, to the extent applicable, to any other paying agent
appointed hereunder. Any reference in this Agreement to the Paying Agent shall
include any co-paying agent unless the context requires otherwise. If the long
term debt rating of the Paying Agent shall not be at least Baa3 from Moody's and
BBB- from Standard & Poor's, the Rating Agencies shall be given notice of such
lower long term debt rating.

                                       13
<PAGE>   19

        Section 3.11. Ownership by the Company of Trust Certificates. The
Company shall on the Closing Date retain Trust Certificates representing at
least __% of the Certificate Percentage Interest and shall thereafter retain
beneficial and record ownership of Trust Certificates representing at least __%
of the Certificate Percentage Interest (the "Retained Trust Certificate
Percentage"). Any attempted transfer of any Trust Certificate that would reduce
the interest of the Company in the Trust below the Retained Trust Certificate
Percentage shall be void. The Owner Trustee shall cause any Trust Certificate
issued to the Company on the Closing Date (and any Trust Certificate issued in
exchange therefor) to contain a legend stating "THIS TRUST CERTIFICATE IS
NON-TRANSFERABLE EXCEPT AS PROVIDED IN SECTION 3.11 OF THE TRUST AGREEMENT".

                                       14
<PAGE>   20

                                  ARTICLE FOUR

                            ACTIONS BY OWNER TRUSTEE

        Section 4.01. Prior Notice to Owners with Respect to Certain Matters.
Subject to the provisions and limitations of Section 4.04, with respect to the
following matters, the Owner Trustee shall not take action unless at least 30
days before the taking of such action, the Owner Trustee shall have notified the
Certificateholders in writing of the proposed action and the Holders of Trust
Certificates evidencing at least a majority of the aggregate Certificate
Percentage Interest shall not have notified the Owner Trustee in writing prior
to the 30th day after such notice is given that such Holders have withheld
consent or provided alternative direction:

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

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

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

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

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

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

        Section 4.02. Action by Owners with Respect to Certain Matters. Subject
to the provisions and limitations of Section 4.04, the Owner Trustee shall not
have the power, except upon the direction of the Owners and with the prior
written consent of the Insurer (so long as no Insurer Default shall have
occurred and be continuing), to (a) remove the Administrator pursuant to Section
8 of the Administration Agreement, (b) appoint a successor Administrator
pursuant to Section 8 of the Administration Agreement, (c) remove the Master
Servicer pursuant to Section 8.01 of the Sale and Servicing Agreement, (d)
except as expressly provided in the Basic Documents, sell the Contracts after
the termination of the Indenture, (e) initiate any claim, suit or proceeding by
the Trust or compromise any claim, suit or proceeding brought by or against the

                                       15
<PAGE>   21

Trust, (f) authorize the merger, consolidation or conversion of the Trust with
or into any other business trust or entity (other than in accordance with
Section 3.10 of the Indenture) or (g) amend the Certificate of Trust. The Owner
Trustee shall take the actions referred to in the preceding sentence only upon
written instructions signed by the Owners.

        Section 4.03. Action by Owners with Respect to Bankruptcy. The Owner
Trustee shall not have the power to commence a voluntary proceeding in
bankruptcy relating to the Trust without the prior written consent of the
Insurer and the unanimous prior approval of all Owners and the delivery to the
Owner Trustee by each such Owner of a certificate certifying that such Owner
reasonably believes that the Trust is insolvent.

        Section 4.04. Restrictions on Owners' Power. The Owners shall not direct
the Owner Trustee to take or to refrain from taking any action if such action or
inaction would be contrary to any obligation of the Trust or the Owner Trustee
under this Agreement or any of the other Basic Documents or would be contrary to
the purpose of the Trust as set forth in Section 2.03, nor shall the Owner
Trustee be obligated to follow any such direction, if given.

        Section 4.05. Majority Control. Except as expressly provided herein, any
action that may be taken by the Owners under this Agreement may be taken by the
Holders of Trust Certificates evidencing not less than a majority of the
aggregate Certificate Percentage Interest. Except as expressly provided herein,
any written notice of the Owners delivered pursuant to this Agreement shall be
effective if signed by Holders of Trust Certificates evidencing not less than a
majority of the aggregate Certificate Percentage Interest at the time of the
delivery of such notice.

                                       16
<PAGE>   22

                                  ARTICLE FIVE

                           APPLICATION OF TRUST FUNDS;
                                 CERTAIN DUTIES

        Section 5.01. Establishment of Trust Account. The Owner Trustee, for the
benefit of the Certificateholders, shall establish and maintain in the name of
the Trust an Eligible Account (the "Certificate Distribution Account"), bearing
a designation clearly indicating that the funds deposited therein are held for
the benefit of the Certificateholders. The Certificate Distribution Account
initially shall be established with The Chase Manhattan Bank in the state of New
York.

        The Owner Trustee shall possess all right, title and interest in funds
on deposit from time to time in the Certificate Distribution Account and in the
proceeds thereof. Except as otherwise expressly provided herein, the Certificate
Distribution Account shall be under the sole dominion and control of the Owner
Trustee for the benefit of the Certificateholders. If, at any time, the
Certificate Distribution Account ceases to be an Eligible Account, the Owner
Trustee (or the Depositor on behalf of the Owner Trustee, if the Certificate
Distribution Account is not then held by the Owner Trustee or an Affiliate
thereof) shall within ten Business Days (or such longer period, not to exceed 30
calendar days, as to which the Insurer must consent) establish a new Certificate
Distribution Account as an Eligible Account and shall transfer any cash and/or
any investments to such new Certificate Distribution Account.

        Section 5.02. Application of Trust Funds.

        (a) On each Calculation Day and Distribution Date, the Owner Trustee
will distribute to Certificateholders, in proportion to each Certificateholder's
Certificate Percentage Interest, amounts deposited into the Certificate
Distribution Account pursuant to Sections 5.06 and 9.01 of the Sale and
Servicing Agreement and Section 5.06(a) of the Indenture with respect to such
Distribution Date.

        (b) On each Distribution Date, the Owner Trustee shall send to each
Certificateholder the statement or statements provided to the Owner Trustee by
the Master Servicer pursuant to Section 5.07 of the Sale and Servicing Agreement
with respect to such Distribution Date.

        (c) In the event that any withholding tax is imposed on the Trust's
payment (or allocations of income) to an Owner, such tax shall reduce the amount
otherwise distributable to the Owner in accordance with this Section. The Owner
Trustee is hereby authorized and directed to retain, or cause the Paying Agent
to retain, from amounts otherwise distributable to the Owners sufficient funds
for the payment of any tax that is legally owed by the Trust (but such
authorization shall not prevent the Owner Trustee from contesting any such tax
in appropriate proceedings, and withholding payment of such tax, if permitted by
law, pending the outcome of such proceedings). The amount of any withholding tax
imposed with respect to an Owner shall be treated as cash distributed to such
Owner at the time it is withheld by the Trust and remitted to the appropriate
taxing authority. If there is a possibility that withholding tax is payable with
respect to a distribution, the Owner Trustee may in its sole discretion withhold
such amounts in accordance with this paragraph (c).

                                       17
<PAGE>   23

        Section 5.03. Method of Payment. Subject to Section 9.01(c) respecting
the final payment upon retirement of each Trust Certificate, distributions
required to be made to each Certificateholder of record on the related Record
Date shall be made by check mailed to such Certificateholder at the address of
such Holder appearing in the Certificate Register or by wire transfer of
immediately available funds or pursuant to other arrangements.

        Section 5.04. No Segregation of Monies; No Interest. Subject to Sections
5.01 and 5.02, monies received by the Owner Trustee hereunder need not be
segregated in any manner except to the extent required by law or the Sale and
Servicing Agreement and may be deposited under such general conditions as may be
prescribed by law, and the Owner Trustee shall not be liable for any interest
thereon.

        Section 5.05. Accounting and Reports to the Noteholders, Owners, the
Internal Revenue Service and Others. The Owner Trustee shall (a) maintain (or
cause to be maintained) the books of the Trust on a calendar year basis and the
accrual method of accounting, (b) deliver to each Owner, as may be required by
the Code and applicable Treasury Regulations, such information as may be
required (including Schedule K-1) to enable each Owner to prepare its federal
and state income tax returns, (c) file such tax returns relating to the Trust
(including a partnership information return, IRS Form 1065) and make such
elections as from time to time may be required or appropriate under any
applicable state or federal statute or any rule or regulation thereunder so as
to maintain the Trust's characterization as a partnership for federal income tax
purposes, (d) cause such tax returns to be signed in the manner required by law
and (e) collect or cause to be collected any withholding tax as described in and
in accordance with Section 5.01(c) with respect to income or distributions to
Owners. The Owner Trustee shall elect under Section 1278 of the Code to include
in income currently any market discount that accrues with respect to the
Contracts. The Owner Trustee shall not make the election provided under Section
754 of the Code.

        Section 5.06. Signature on Returns; Tax Matters Partner.

        (a) The Company shall sign on behalf of the Trust the tax returns of the
Trust.

        (b) The Company shall be designated the "tax matters partner" of the
Trust pursuant to Section 6231(a)(7)(A) of the Code and applicable Treasury
Regulations.

                                       18
<PAGE>   24

                                   ARTICLE SIX

                      AUTHORITY AND DUTIES OF OWNER TRUSTEE

        Section 6.01. General Authority. Subject to the provisions and
limitations of Sections 2.03 and 2.06, the Owner Trustee is authorized and
directed to execute and deliver the Basic Documents to which the Trust is to be
a party and each certificate or other document attached as an exhibit to or
contemplated by the Basic Documents to which the Trust is to be a party and any
amendment or other agreement, as evidenced conclusively by the Owner Trustee's
execution thereof. In addition to the foregoing, the Owner Trustee is
authorized, but shall not be obligated, to take all actions required of the
Trust pursuant to the Basic Documents. The Owner Trustee is further authorized
from time to time to take such action as the Administrator recommends with
respect to the Basic Documents.

        Section 6.02. General Duties. Subject to the provisions and limitations
of Sections 2.03 and 2.06, it shall be the duty of the Owner Trustee to
discharge (or cause to be discharged through the Administrator or such agents as
shall be appointed with the consent of the Insurer) all of its responsibilities
pursuant to the terms of this Agreement and the other Basic Documents to which
the Trust is a party and to administer the Trust in the interest of the Owners,
subject to the Basic Documents and in accordance with the provisions of this
Agreement. Without limiting the foregoing, the Owner Trustee shall on behalf of
the Trust file and prove any claim or claims that may exist against the Company
in connection with any claims paying procedure as part of an insolvency or
receivership proceeding involving the Company. Notwithstanding the foregoing,
the Owner Trustee shall be deemed to have discharged its duties and
responsibilities hereunder and under the other Basic Documents to the extent the
Administrator has agreed in the Administration Agreement to perform any act or
to discharge any duty of the Owner Trustee hereunder or under any Basic
Document, regardless of whether the Administration Agreement is subsequently
terminated or rejected by the Administrator, and the Owner Trustee shall not be
held liable for the default or failure of the Administrator to carry out its
obligations under the Administration Agreement.

        Section 6.03. Action Upon Instruction.

        (a) Subject to Article Four, in accordance with the terms of the Basic
Documents, the Insurer (so long as an Insurer Default shall not have occurred
and be continuing) or the Owners (if an Insurer Default shall have occurred and
be continuing) (the "Instructing Party") may by written instruction direct the
Owner Trustee in the management of the Trust. Such direction may be exercised at
any time by written instruction of the Instructing Party pursuant to Article
Four.

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

        (c) Whenever the Owner Trustee is unable to decide between alternative
courses of action permitted or required by the terms of this Agreement or under
any other Basic Document,

                                       19
<PAGE>   25

the Owner Trustee shall promptly give notice (in such form as shall be
appropriate under the circumstances) to the Instructing Party requesting
instruction as to the course of action to be adopted, and to the extent the
Owner Trustee acts in good faith in accordance with any written instruction of
the Instructing Party received, the Owner Trustee shall not be liable on account
of such action to any Person. If the Owner Trustee shall not have received
appropriate instruction within ten days of such notice (or within such shorter
period of time as reasonably may be specified in such notice or may be necessary
under the circumstances) it may, but shall be under no duty to, take or refrain
from taking such action not inconsistent with this Agreement and the other Basic
Documents, as it shall deem to be in the best interests of the Owners, and shall
have no liability to any Person for such action or inaction.

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

        Section 6.04. No Duties Except as Specified in this Agreement or in
Instructions. The Owner Trustee shall not have any duty or obligation to manage,
make any payment with respect to, register, record, sell, dispose of or
otherwise deal with the Trust Estate, or to otherwise take or refrain from
taking any action under, or in connection with, any document contemplated hereby
to which the Owner Trustee is a party, except as expressly provided by the terms
of this Agreement or in any document or written instruction received by the
Owner Trustee pursuant to Section 6.03 and no implied duties or obligations
shall be read into this Agreement or any other Basic Document against the Owner
Trustee. The Owner Trustee shall have no responsibility for filing any financing
or continuation statement in any public office at any time or to otherwise
perfect or maintain the perfection of any security interest or lien granted to
it hereunder or to prepare or file any Commission filing for the Trust or to
record this Agreement or any other Basic Document. The Owner Trustee
nevertheless agrees that it will, at its own cost and expense, promptly take all
action as may be necessary to discharge any liens (other than the lien of the
Indenture) on any part of the Trust Estate that result from actions by, or
claims against, the Owner Trustee that are not related to the ownership or the
administration of the Trust Estate.

        Section 6.05. No Action Except Under Specified Documents or
Instructions. The Owner Trustee shall not manage, control, use, sell, dispose of
or otherwise deal with any part of the Trust Estate except in accordance with
(i) the powers granted to and the authority conferred upon

                                       20
<PAGE>   26

the Owner Trustee pursuant to this Agreement, (ii) the other Basic Documents and
(iii) any document or instruction delivered to the Owner Trustee pursuant to
Section 6.03.

        Section 6.06. Restrictions. The Owner Trustee shall not take any action
(i) that is inconsistent with the purposes of the Trust set forth in Section
2.03 or (ii) that, to the actual knowledge of a Responsible Officer in the Owner
Trustee Corporate Trust Office, would result in the Trust's becoming taxable as
a corporation for federal or state income tax purposes. The Owners shall not
direct the Owner Trustee to take action that would violate the provisions of
this Section.

                                       21
<PAGE>   27

                                  ARTICLE SEVEN

                          CONCERNING THE OWNER TRUSTEE

        Section 7.01. Acceptance of Trusts and Duties. The Owner Trustee accepts
the trusts hereby created and agrees to perform its duties hereunder with
respect to such trusts but only upon the terms of this Agreement. The Owner
Trustee also agrees to disburse all monies actually received by it constituting
part of the Trust Estate upon the terms of this Agreement and the other Basic
Documents. The Owner Trustee shall not be answerable or accountable hereunder or
under any other Basic Document under any circumstances, except (i) for its own
willful misconduct or negligence or (ii) in the case of the inaccuracy of any
representation or warranty contained in Section 7.03 expressly made by the Owner
Trustee. In particular, but not by way of limitation (and subject to the
exceptions set forth in the preceding sentence):

               (a) the Owner Trustee shall not be liable for any error of
        judgment made by a Responsible Officer of the Owner Trustee;

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

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

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

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

               (f) the Owner Trustee shall not be liable for the default or
        misconduct of the Administrator, WFS Financial Auto Loans, Inc., as
        Seller or Depositor, the Insurer, the Indenture Trustee or the Master
        Servicer under any of the Basic Documents or otherwise and the Owner
        Trustee shall have no obligation or liability to perform the obligations
        of the Trust under this Agreement or the other Basic Documents that are
        required to be performed by the Administrator under the Administration
        Agreement, the Indenture

                                       22
<PAGE>   28

        Trustee under the Indenture or the Master Servicer or WFS Financial Auto
        Loans, Inc. as Seller or Depositor under the Sale and Servicing
        Agreement; and

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

        Section 7.02. Furnishing of Documents. The Owner Trustee shall furnish
to the Owners promptly upon receipt of a written request therefor, duplicates or
copies of all reports, notices, requests, demands, certificates, financial
statements and any other instruments furnished to the Owner Trustee under the
Basic Documents.

        Section 7.03. Representations and Warranties. The Owner Trustee hereby
represents and warrants to the Depositor, the Owners and the Insurer that:

               (a) It is a banking corporation duly organized and validly
        existing in good standing under the laws of the State of Delaware. It
        has all requisite corporate power and authority to execute, deliver and
        perform its obligations under this Agreement.

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

               (c) Neither the execution nor the delivery by it of this
        Agreement, nor the consummation by it of the transactions contemplated
        hereby nor compliance by it with any of the terms or provisions hereof
        will contravene any federal or Delaware law, governmental rule or
        regulation governing the banking or trust powers of the Owner Trustee or
        any judgment or order binding on it, or constitute any default under its
        charter documents or bylaws or any indenture, mortgage, contract,
        agreement or instrument to which it is a party or by which any of its
        properties may be bound or result in the creation or imposition of any
        lien, charge or encumbrance on the Trust Estate resulting from actions
        by or claims against the Owner Trustee individually which are unrelated
        to this Agreement or the other Basic Documents.

        Section 7.04. Reliance; Advice of Counsel.

        (a) The Owner Trustee shall incur no liability to anyone in acting upon
any signature, instrument, notice, resolution, request, consent, order,
certificate, report, opinion, bond or other document or paper believed by it to
be genuine and believed by it to be signed by the proper party or parties. The
Owner Trustee may accept a certified copy of a resolution of the board of

                                       23
<PAGE>   29

directors or other governing body of any corporate party as conclusive evidence
that such resolution has been duly adopted by such body and that the same is in
full force and effect. As to any fact or matter the method of determination of
which is not specifically prescribed herein, the Owner Trustee may for all
purposes hereof rely on a certificate, signed by the president or any vice
president or by the treasurer or other authorized officers of the relevant
party, as to such fact or matter and such certificate shall constitute full
protection to the Owner Trustee for any action taken or omitted to be taken by
it in good faith in reliance thereon.

        (b) In the exercise or administration of the trusts hereunder and in the
performance of its duties and obligations under this Agreement or the other
Basic Documents, the Owner Trustee (i) may act directly or through its agents or
attorneys pursuant to agreements entered into with any of them, and the Owner
Trustee shall not be liable for the conduct or misconduct of such agents or
attorneys if such agents or attorneys shall have been selected by the Owner
Trustee with reasonable care, and (ii) may consult with counsel, accountants and
other skilled persons to be selected with reasonable care and employed by it.
The Owner Trustee shall not be liable for anything done, suffered or omitted in
good faith by it in accordance with the written opinion or advice of any such
counsel, accountants or other such persons and not contrary to this Agreement or
any other Basic Document.

        Section 7.05. Not Acting in Individual Capacity. Except as otherwise
provided in this Article Seven, in accepting the trusts hereby created, Chase
Manhattan Bank Delaware acts solely as Owner Trustee hereunder and not in its
individual capacity, and all Persons having any claim against the Owner Trustee
by reason of the transactions contemplated by this Agreement or any other Basic
Document shall look only to the Trust Estate for payment or satisfaction
thereof.

        Section 7.06. Owner Trustee Not Liable for Trust Certificates, Notes or
Contracts. The recitals contained herein and in the Trust Certificates (other
than the signature of the Owner Trustee and the certificate of authentication on
the Trust Certificates) shall be taken as the statements of the Depositor, and
the Owner Trustee assumes no responsibility for the correctness thereof. The
Owner Trustee makes no representations as to the validity or sufficiency of this
Agreement, any other Basic Document or the Trust Certificates (other than the
signature of the Owner Trustee and the certificate of authentication on the
Trust Certificates and the representations and warranties in Section 7.03) or
the Notes, or of any Contract or related documents. The Owner Trustee shall at
no time have any responsibility or liability for or with respect to the
legality, validity and enforceability of any Contract, or the perfection and
priority of any security interest created by any Contract in any Financed
Vehicle or the maintenance of any such perfection and priority, or for or with
respect to the sufficiency of the Trust Estate or its ability to generate the
payments to be distributed to Certificateholders under this Agreement or the
Noteholders under the Indenture, including, without limitation, the existence,
condition and ownership of any Financed Vehicle; the existence and
enforceability of any insurance thereon; the existence and contents of any
Contract on any computer or other record thereof; the validity of the assignment
of any Contract to the Trust or of any intervening assignment; the completeness
of any Contract; the performance or enforcement of any Contract; the compliance
by the Depositor, the Insurer or the Master Servicer with any warranty or
representation made under any Basic Document or in any related document or the
accuracy of any such warranty or

                                       24
<PAGE>   30

representation; or any action of the Administrator, the Indenture Trustee or the
Master Servicer or any subservicer taken in the name of the Owner Trustee.

        Section 7.07. Owner Trustee May Own Trust Certificates and Notes. The
Owner Trustee in its individual or any other capacity may become the owner or
pledgee of Trust Certificates or Notes and may deal with the Depositor, the
Insurer, the Administrator, the Indenture Trustee and the Master Servicer in
banking transactions with the same rights as it would have if it were not Owner
Trustee.

        Section 7.08. Pennsylvania Motor Vehicle Sales Finance Act Licenses. The
Owner Trustee, in its individual capacity, shall use its best efforts to
maintain, and the Owner Trustee, as Owner Trustee, shall cause the Trust to use
its best efforts to maintain, the effectiveness of all licenses required under
the Pennsylvania Motor Vehicle Sales Finance Act in connection with this
Agreement and the other Basic Documents and the transactions contemplated hereby
and thereby until such time as the Trust shall terminate in accordance with the
terms hereof.

                                       25
<PAGE>   31

                                  ARTICLE EIGHT

                          COMPENSATION OF OWNER TRUSTEE

        Section 8.01. Owner Trustee's Fees and Expenses. The Owner Trustee shall
receive as compensation for its services hereunder such fees as have been
separately agreed upon before the date hereof between the Depositor and the
Owner Trustee, and the Owner Trustee shall be entitled to be reimbursed by the
Depositor for its other reasonable expenses hereunder, including the reasonable
compensation, expenses and disbursements of such agents, representatives,
experts and counsel as the Owner Trustee may employ in connection with the
exercise and performance of its rights and its duties hereunder.

        Section 8.02. Indemnification. The Company shall be liable as primary
obligor for, and shall indemnify the Owner Trustee and its successors, assigns,
agents and servants (collectively, the "Indemnified Parties") from and against,
any and all liabilities, obligations, losses, damages, taxes, claims, actions
and suits, and any and all reasonable costs, expenses and disbursements
(including reasonable legal fees and expenses) of any kind and nature whatsoever
(collectively, "Expenses") which may at any time be imposed on, incurred by or
asserted against the Owner Trustee or any Indemnified Party in any way relating
to or arising out of this Agreement, the other Basic Documents, the Trust
Estate, the administration of the Trust Estate or the action or inaction of the
Owner Trustee hereunder, except only that the Company shall not be liable for or
required to indemnify an Indemnified Party from and against Expenses arising or
resulting from any of the matters described in the third sentence of Section
7.01. The indemnities contained in this Section shall survive the resignation or
termination of the Owner Trustee or the termination of this Agreement. In the
event of any claim, action or proceeding for which indemnity will be sought
pursuant to this Section, the Owner Trustee's choice of legal counsel shall be
subject to the approval of the Depositor, which approval shall not be
unreasonably withheld.

        Section 8.03. Payments to the Owner Trustee. Any amounts paid to the
Owner Trustee pursuant to this Article shall be deemed not to be a part of the
Trust Estate immediately after such payment.

                                       26
<PAGE>   32

                                  ARTICLE NINE

                         TERMINATION OF TRUST AGREEMENT

        Section 9.01. Termination of Trust Agreement.

        (a) The Trust shall dissolve upon the final distribution by the Owner
Trustee of all monies or other property or proceeds of the Trust Estate in
accordance with the terms of the Indenture, the Sale and Servicing Agreement and
Article Five. The bankruptcy, liquidation, dissolution, death or incapacity of
any Owner shall not (i) operate to terminate this Agreement or the Trust, (ii)
entitle such Owner's legal representatives or heirs to claim an accounting or to
take any action or proceeding in any court for a partition or winding up of all
or any part of the Trust or Trust Estate or (iii) otherwise affect the rights,
obligations and liabilities of the parties hereto.

        (b) Except as provided in Section 9.01(a), neither the Depositor, the
Company, the Insurer nor any Owner shall be entitled to dissolve, revoke or
terminate the Trust.

        (c) Notice of any dissolution of the Trust, specifying the Distribution
Date upon which Certificateholders shall surrender their Trust Certificates to
the Paying Agent for payment of the final distribution and cancellation, shall
be given by the Owner Trustee by letter to Certificateholders mailed within five
Business Days of receipt of a termination notice from the Master Servicer given
pursuant to Section 9.01(c) of the Sale and Servicing Agreement and no later
than 20 days prior to such dissolution, stating (i) the Distribution Date upon
or with respect to which final payment of the Trust Certificates shall be made
upon presentation and surrender of the Trust Certificates at the office of the
Paying Agent in The City of New York therein designated, (ii) the amount of any
such final payment and (iii) that the Record Date otherwise applicable to such
Distribution Date is not applicable, payments being made only upon presentation
and surrender of the Trust Certificates at the office of the Paying Agent
therein specified. The Owner Trustee shall give such notice to the Certificate
Registrar (if other than the Owner Trustee) and the Paying Agent at the time
such notice is given to Certificateholders. Upon presentation and surrender of
the Trust Certificates, the Paying Agent shall cause to be distributed to
Certificateholders amounts distributable on such Distribution Date pursuant to
Section 5.02. In addition, the Owner Trustee shall notify the Rating Agencies
upon the final payment of the Trust Certificates.

        (d) In the event that all of the Certificateholders shall not surrender
their Trust Certificates for cancellation within six months after the date
specified in the above-mentioned written notice, the Owner Trustee shall give a
second written notice to the remaining Certificateholders to surrender their
Trust Certificates for cancellation and receive the final distribution with
respect thereto. If within one year after the second notice all the Trust
Certificates shall not have been surrendered for cancellation, the Owner Trustee
may take appropriate steps, or may appoint an agent to take appropriate steps,
to contact the remaining Certificateholders concerning surrender of their Trust
Certificates, and the cost thereof shall be paid out of the funds and other
assets that shall remain subject to this Agreement. Any funds remaining in the
Trust after exhaustion of such remedies at least 18 months after the date of
dissolution shall be distributed by the Owner Trustee to a charity designated by
the Master Servicer.

                                       27
<PAGE>   33

        (e) Upon the winding up of the Trust and payment of its liabilities or
reasonable provision therefore in accordance with Section 3808 of the Business
Trust Statute, the Owner Trustee shall cause the Certificate of Trust to be
cancelled by filing a certificate of cancellation with the Secretary of State in
accordance with the provisions of Section 3810 of the Business Trust Statute and
this Agreement (other than Article Eight) and the Trust shall terminate.

                                       28
<PAGE>   34

                                   ARTICLE TEN

             SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

        Section 10.01. Eligibility Requirements for Owner Trustee. The Owner
Trustee shall at all times be a corporation satisfying the provisions of Section
3807(a) of the Business Trust Statute; authorized to exercise corporate trust
powers; having a combined capital and surplus of at least $50,000,000 and
subject to supervision or examination by federal or state authorities; and
having (or having a parent that has) a rating of at least Baa3 by Moody's and
A-1 by Standard & Poor's. If such corporation shall publish reports of condition
at least annually pursuant to law or to the requirements of the aforesaid
supervising or examining authority, then for the purpose of this Section, the
combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition
so published. In case at any time the Owner Trustee shall cease to be eligible
in accordance with the provisions of this Section, the Owner Trustee shall
resign immediately in the manner and with the effect specified in Section 10.02.

        Section 10.02. Resignation or Removal of Owner Trustee. The Owner
Trustee may at any time resign and be discharged from the trusts hereby created
by giving written notice thereof to the Administrator and the Insurer. Upon
receiving such notice of resignation, the Administrator shall promptly appoint a
successor Owner Trustee by written instrument, in duplicate, one copy of which
instrument shall be delivered to the resigning Owner Trustee and one copy to the
successor Owner Trustee; provided that the Depositor shall have received written
confirmation from each Rating Agency that the proposed appointment will not
result in an increased capital charge to the Insurer by either Rating Agency. If
no successor Owner Trustee shall have been so appointed and have accepted
appointment within 30 days after the giving of such notice of resignation, the
resigning Owner Trustee or the Insurer may petition any court of competent
jurisdiction for the appointment of a successor Owner Trustee.

        If at any time the Owner Trustee shall cease to be eligible in
accordance with the provisions of Section 10.01 and shall fail to resign after
written request therefor by the Administrator, or if at any time the Owner
Trustee shall be legally unable to act, or shall be adjudged bankrupt or
insolvent, or a receiver of the Owner Trustee or of its property shall be
appointed, or any public officer shall take charge or control of the Owner
Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then the Administrator, with the consent of the
Insurer (so long as an Insurer Default shall not have occurred and be
continuing) may remove the Owner Trustee. If the Administrator shall remove the
Owner Trustee under the authority of the immediately preceding sentence, the
Administrator shall promptly appoint a successor Owner Trustee by written
instrument, in duplicate, one copy of which instrument shall be delivered to the
outgoing Owner Trustee so removed and one copy to the successor Owner Trustee,
and shall pay all fees owed to the outgoing Owner Trustee.

        Any resignation or removal of the Owner Trustee and appointment of a
successor Owner Trustee pursuant to any of the provisions of this Section shall
not become effective until acceptance of appointment by the successor Owner
Trustee pursuant to Section 10.03 and payment of all fees and expenses owed to
the outgoing Owner Trustee. The Administrator shall provide notice of such
resignation or removal of the Owner Trustee to each Rating Agency.

                                       29
<PAGE>   35

        Section 10.03. Successor Owner Trustee. Any successor Owner Trustee
appointed pursuant to Section 10.02 shall execute, acknowledge and deliver to
the Administrator, the Insurer and to its predecessor Owner Trustee an
instrument accepting such appointment under this Agreement, and thereupon the
resignation or removal of the predecessor Owner Trustee shall become effective,
and such successor Owner Trustee, without any further act, deed or conveyance,
shall become fully vested with all the rights, powers, duties and obligations of
its predecessor under this Agreement, with like effect as if originally named as
Owner Trustee. The predecessor Owner Trustee shall, upon payment of its fees and
expenses, deliver to the successor Owner Trustee all documents and statements
and monies held by it under this Agreement; and the Administrator and the
predecessor Owner Trustee shall execute and deliver such instruments and do such
other things as may reasonably be required for fully and certainly vesting and
confirming in the successor Owner Trustee all such rights, powers, duties and
obligations.

        No successor Owner Trustee shall accept appointment as provided in this
Section unless at the time of such acceptance such successor Owner Trustee shall
be eligible pursuant to Section 10.01.

        Upon acceptance of appointment by a successor Owner Trustee pursuant to
this Section, the Administrator shall mail notice thereof to all
Certificateholders, the Insurer, the Indenture Trustee, the Noteholders and each
Rating Agency. If the Administrator shall fail to mail such notice within ten
days after acceptance of such appointment by the successor Owner Trustee, the
successor Owner Trustee shall cause such notice to be mailed at the expense of
the Administrator.

        Section 10.04. Merger or Consolidation of Owner Trustee. Any corporation
into which the Owner Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Owner Trustee shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Owner Trustee, shall be the successor of the Owner Trustee hereunder, without
the execution or filing of any instrument or any further act on the part of any
of the parties hereto, anything herein to the contrary notwithstanding;
provided, that such corporation shall be eligible pursuant to Section 10.01 and,
provided, further, that the Owner Trustee shall mail notice of such merger or
consolidation to each Rating Agency.

        Section 10.05. Appointment of Co-Trustee or Separate Trustee.
Notwithstanding any other provisions of this Agreement, at any time, for the
purpose of meeting any legal requirements of any jurisdiction in which any part
of the Trust Estate or any Financed Vehicle may at the time be located, the
Administrator and the Owner Trustee acting jointly shall have the power and
shall execute and deliver all instruments to appoint one or more Persons
approved by the Administrator and Owner Trustee to act as co-trustee, jointly
with the Owner Trustee, or as separate trustee or separate trustees, of all or
any part of the Trust Estate, and to vest in such Person, in such capacity, such
title to the Trust or any part thereof and, subject to the other provisions of
this Section, such powers, duties, obligations, rights and trusts as the
Administrator and the Owner Trustee may consider necessary or desirable. If the
Administrator shall not have joined in such appointment within 15 days after the
receipt by it of a request so to do, the Owner Trustee alone shall have the
power to make such appointment. No co-trustee or separate trustee under this
Agreement shall be required to meet the terms of eligibility as a successor
Owner

                                       30
<PAGE>   36

Trustee pursuant to Section 10.01, except that such co-trustee or successor
trustee shall have (or have a parent that has) a rating of at least Baa3 by
Moody's and A-1 by Standard & Poor's, and no notice of the appointment of any
co-trustee or separate trustee shall be required pursuant to Section 10.03.

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

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

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

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

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

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

                                       31
<PAGE>   37

                                 ARTICLE ELEVEN

                                  MISCELLANEOUS

        Section 11.01. Supplements and Amendments.

        (a) This Agreement may be amended by the Depositor, the Company and the
Owner Trustee, with the prior written consent of the Insurer (so long as an
Insurer Default shall not have occurred and be continuing), without the consent
of any of the Noteholders or the Certificateholders, to cure any ambiguity, to
correct or supplement any provisions in this Agreement or to add any other
provisions with respect to matters or questions arising under this Agreement
that shall not be inconsistent with the provisions of this Agreement; provided,
however, that any such action shall not, as evidenced by an Opinion of Counsel,
adversely affect in any material respect the interests of any Noteholder or
Certificateholder.

        (b) This Agreement may also be amended from time to time with the prior
written consent of the Insurer (so long as an Insurer Default shall not have
occurred and be continuing) by the Depositor, the Company and the Owner Trustee,
with the consent of the Holders of Trust Certificates evidencing not less than
51% of the aggregate Certificate Percentage (which consent of any Holder of a
Note or Trust Certificate given pursuant to this Section or pursuant to any
other provision of this Agreement shall be conclusive and binding on such Holder
and on all future Holders of such Note or Trust Certificate, as the case may be,
issued upon the transfer thereof or in exchange thereof or in lieu thereof
whether or not notation of such consent is made thereon) and, if such amendment
materially and adversely affects the interests of the Noteholders, with the
consent of Holders (as such term is defined in the Indenture) of Notes
evidencing not less than 51% of the Outstanding Amount of the Notes, for the
purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions of this Agreement, or of modifying in any manner the rights of
the Noteholders or the Certificateholders; provided, however, that no such
amendment shall increase or reduce in any manner the amount of, or accelerate or
delay the timing of, (i) collections of payments on Contracts or distributions
that shall be required to be made for the benefit of the Noteholders or the
Certificateholders or any Interest Rate or the Pass-Through Rate or (ii) reduce
the aforesaid percentage of the Outstanding Amount of the Notes and the
Certificate Percentage required to consent to any such amendment, without the
consent of the Insurer and the Holders of all outstanding Notes and Trust
Certificates.

        (c) Prior to the execution of any such amendment or consent, the Owner
Trustee shall furnish written notification of the substance of such amendment or
consent, together with a copy thereof, to the Indenture Trustee, the Insurer,
the Administrator and each Rating Agency.

        (d) Promptly after the execution of any such amendment or consent, the
Owner Trustee shall furnish written notification of the substance of such
amendment or consent to each Certificateholder. It shall not be necessary for
the consent of Certificateholders, Noteholders or the Indenture Trustee pursuant
to this Section to approve the particular form of any proposed amendment or
consent, but it shall be sufficient if such consent shall approve the substance
thereof. The manner of obtaining such consents (and any other consents of
Certificateholders provided for in this Agreement or in any other Basic
Document) and of evidencing the

                                       32
<PAGE>   38

authorization of the execution thereof by Certificateholders shall be subject to
such reasonable requirements as the Owner Trustee may prescribe.

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

        (f) In connection with the execution of any amendment to this Agreement
or any other Basic Document to which the Issuer is a party and for which
amendment the Owner Trustee's consent is sought, the Owner Trustee shall be
entitled to receive and conclusively rely upon an Opinion of Counsel to the
effect that such amendment is authorized or permitted by the Basic Documents and
that all conditions precedent in the Basic Documents for the execution and
delivery thereof by the Issuer or the Owner Trustee, as the case may be, have
been satisfied. The Owner Trustee may, but shall not be obligated to, enter into
any such amendment that affects the Owner Trustee's own rights, duties or
immunities under this Agreement or otherwise.

        Section 11.02. No Legal Title to Trust Estate in Owners. The Owners
shall not have legal title to any part of the Trust Estate. The Owners shall be
entitled to receive distributions with respect to their undivided ownership
interest therein only in accordance with Articles Five and Nine. No transfer, by
operation of law or otherwise, of any right, title or interest of the Owners to
and in their ownership interest in the Trust Estate shall operate to terminate
this Agreement or the trusts hereunder or entitle any transferee to an
accounting or to the transfer to it of legal title to any part of the Trust
Estate.

        Section 11.03. Limitations on Rights of Others. Except for Section 2.07,
the provisions of this Agreement are solely for the benefit of the Owner
Trustee, the Depositor, the Company, the Owners, the Administrator and, to the
extent expressly provided herein, the Indenture Trustee and the Noteholders, and
nothing in this Agreement (other than Section 2.07), whether express or implied,
shall be construed to give to any other Person any legal or equitable right,
remedy or claim in the Trust Estate or under or in respect of this Agreement or
any covenants, conditions or provisions contained herein.

        Section 11.04. Notices. All demands, notices and communications under
this Agreement shall be in writing personally delivered or mailed by certified
mail, return receipt requested, and shall be deemed to have been duly given upon
receipt in the case of (a) the Owner Trustee, at the Owner Trustee Corporate
Trust Office; (b) the Depositor, at 23 Pasteur, Irvine, California 92618,
Attention: Legal Department; (c) the Company, at 23 Pasteur, Irvine, California
92618, Attention: Legal Department; (d) the Insurer, at 350 Park Avenue, New
York, New York 10022, Attention: Surveillance Department, Telex No.: (212)
688-3101, Confirmation: (212) 826-0100, Telecopy Nos.: (212) 339-3518, (212)
339-3529 (in each case in which notice or other communication to Financial
Security refers to an Event of Default, a claim on the Note Policy or with
respect to which failure on the part of Financial Security to respond shall be
deemed to constitute consent or acceptance, then a copy of such other notice or
other communication should also be sent to the attention of the General Counsel
and the Head - Financial Guaranty Group "URGENT MATERIAL ENCLOSED"); (e) the
Certificate Registrar or the agent for the Owner Trustee, at the address
indicated under the definition of "Owner Trustee Corporate Trust Office"; or (f)
as to each party, at such other address as shall be designated by such party in
a written notice to each other party. Any notice required or permitted to be
mailed to a Certificateholder

                                       33
<PAGE>   39

shall be given by first-class mail, postage prepaid, at the address of such
Holder as shown in the Certificate Register. Any notice so mailed within the
time prescribed in this Agreement shall be conclusively presumed to have been
duly given, whether or not the Certificateholder receives such notice.

        Section 11.05. 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 Trust
Certificates or the rights of the Holders thereof.

        Section 11.06. Counterparts. This Agreement may be executed in several
counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.

        Section 11.07. Successors and Assigns. All covenants and agreements
contained herein shall be binding upon, and inure to the benefit of, each of the
Depositor, the Company, the Insurer, the Owner Trustee and their respective
successors and permitted assigns and each Owner and its successors and permitted
assigns, all as herein provided. Any request, notice, direction, consent, waiver
or other instrument or action by an Owner shall bind the successors and assigns
of such Owner.

        Section 11.08. No Petition.

        (a) The Depositor will not at any time institute against the Trust or
the Company any bankruptcy proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the
Trust Certificates, the Notes, this Agreement or any of the other Basic
Documents.

        (b) The Owner Trustee, by entering into this Agreement, each
Certificateholder, by accepting a Trust Certificate, and the Indenture Trustee
and each Noteholder, by accepting the benefits of this Agreement, hereby
covenant and agree that they will not at any time institute against the Seller,
the Depositor, the Company or the Trust, or join in any institution against the
Seller, the Depositor, the Company or the Trust of, any bankruptcy proceedings
under any United States federal or state bankruptcy or similar law in connection
with any obligations relating to the Trust Certificates, the Notes, this
Agreement or any of the other Basic Documents.

        (c) The Company will not at any time institute against the Trust, the
Seller or the Depositor any bankruptcy proceedings under any United States
federal or state bankruptcy or similar law in connection with any obligations
relating to the Trust Certificates, the Notes, the Agreement or any of the other
Basic Documents.

        Section 11.09. No Recourse. Each Certificateholder by accepting a Trust
Certificate acknowledges that such Certificateholder's Trust Certificates
represent beneficial interests in the Trust only and do not represent interests
in or obligations of the Depositor, the Company, the Master Servicer, the
Seller, the Administrator, the Owner Trustee, the Indenture Trustee or any of
their respective Affiliates and no recourse may be had against such parties or
their assets,

                                       34
<PAGE>   40

except as may be expressly set forth or contemplated in this Agreement, the
Trust Certificates or the other Basic Documents.

        Section 11.10. Certificates Nonassessable and Fully Paid.
Certificateholders shall not be personally liable for obligations of the Trust.
The interests represented by the Certificates shall be nonassessable for any
losses or expenses of the Trust or for any reason whatsoever, and, upon
authentication thereof pursuant to Section 3.03, the Certificates shall be
deemed fully paid.

        Section 11.11. Headings. The headings of the various Articles and
Sections herein are for convenience of reference only and shall not define or
limit any of the terms or provisions hereof.

        Section 11.12. Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

        Section 11.13. Depositor Payment Obligation. The Depositor shall be
responsible for payment of the Administrator's compensation pursuant to Section
3 of the Administration Agreement and shall reimburse the Administrator for all
expenses and liabilities of the Administrator incurred thereunder.

        Section 11.14. Insurer Default or Insolvency. If a default under the
Note Policy has occurred and is continuing or a Insurer Insolvency has occurred,
any provision of this Agreement or any other Basic Document giving the Insurer
the right to direct, appoint or consent to, approve of, or take any action under
this Agreement, shall be inoperative during the period of such default or the
period from and after such Insurer Insolvency and such consent or approval shall
be deemed to have been given for the purpose of such provisions.

                                       35
<PAGE>   41

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

                                            WFS FINANCIAL AUTO LOANS, INC.,
                                             as Depositor

                                            By:
                                                --------------------------------
                                                Name:
                                                Title:

                                            WFS INVESTMENTS, INC.

                                            By:
                                                --------------------------------
                                                Name:
                                                Title:

                                            FINANCIAL SECURITY ASSURANCE INC.

                                            By:
                                                --------------------------------
                                                Name:
                                                Title:

                                            CHASE MANHATTAN BANK DELAWARE,
                                             as Owner Trustee

                                            By:
                                                --------------------------------
                                                Name:
                                                Title:

<PAGE>   42

                                                                       EXHIBIT A

                             CERTIFICATE OF TRUST OF
                        WFS FINANCIAL 20__-_ OWNER TRUST

        This Certificate of Trust of WFS Financial 20__-_ Owner Trust (the
"Trust"), dated as of __________ __, 20__, is being duly executed and filed by
Chase Manhattan Bank Delaware, a Delaware corporation, as trustee, to form a
business trust under the Delaware Business Trust Act (12 Del. Code, Section 3801
et seq.).

        1. Name. The name of the business trust formed hereby is WFS Financial
20__-_ Owner Trust.

        2. Delaware Trustee. The name and business address of the trustee of the
Trust in the State of Delaware is Chase Manhattan Bank Delaware, 1201 Market
Street, Wilmington, Delaware 19801, Attention: Corporate Trust Administration
Department.

        IN WITNESS WHEREOF, the undersigned, being the sole trustee of the
Trust, has executed this Certificate of Trust as of the date first above
written.

                                            CHASE MANHATTAN BANK DELAWARE,
                                              not in its individual capacity but
                                              solely as Owner Trustee

                                            By:
                                                --------------------------------
                                                Name:
                                                Title:

                                       A-1
<PAGE>   43

                                                                       EXHIBIT B

        THIS TRUST CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE NOTES
TO THE EXTENT DESCRIBED IN THE INDENTURE REFERRED TO HEREIN.

                    [TO BE INSERTED ON COMPANY CERTIFICATE--
                   THIS TRUST CERTIFICATE IS NON-TRANSFERABLE]

                        WFS FINANCIAL 20__-_ OWNER TRUST

                       AUTO RECEIVABLE BACKED CERTIFICATE

        evidencing a fractional undivided interest in the Trust, as defined
below, the property of which includes, among other things, a pool of retail
installment sale contracts secured by new and used automobiles and light duty
trucks sold to the Trust by WFS Financial Auto Loans, Inc.

        (This Trust Certificate does not represent an interest in or obligation
of WFS Financial Auto Loans, Inc., WFS Financial Inc, WFS Investments, Inc. or
any of their respective affiliates, and is not a deposit and is not insured by
the Federal Deposit Insurance Corporation.)

        Full and complete payment of the Certificate Distributable Amount on
each Distribution Date is unconditionally and irrevocably guaranteed pursuant to
the Certificate Policy.

NUMBER C-1                                                               $______
                                                                CUSIP NO. ______

        THIS CERTIFIES THAT Cede & Co. is the registered owner of a __%
Certificate Percentage Interest nonassessable, fully-paid, fractional undivided
interest in the WFS Financial 20__-_ Owner Trust (the "Trust") formed by WFS
Financial Auto Loans, Inc., a California corporation (the "Depositor").

        The Trust was created pursuant to a Trust Agreement, dated __________
__, 20__, as amended and restated __________ __, 20__ (as amended and
supplemented from time to time, the "Trust Agreement"), among WFS Financial Auto
Loans, Inc. (the "Depositor"), WFS Investments, Inc. (the "Company"), Financial
Security Assurance Inc. (the "Insurer") and Chase Manhattan Bank Delaware, as
owner trustee (the "Owner Trustee"), a summary of certain of the pertinent
provisions of which is set forth below. Capitalized terms used herein that are
not otherwise defined shall have the meanings ascribed thereto in the Trust
Agreement.

        This Trust Certificate is one of the duly authorized Trust Certificates
designated as "______% Auto Receivable Backed Certificates" (the "Trust
Certificates"). Issued under the Indenture, dated as of __________ __, 20__ (the
"Indenture"), between the Trust and Bankers Trust Company as Indenture Trustee,
are three classes of Notes designated as "______% Auto Receivable Backed Notes,
Class A-1", "______% Auto Receivable Backed Notes, Class A-2" and "______% Auto
Receivable Backed Notes, Class A-3" (collectively, the "Notes"). This Trust
Certificate is issued under and is subject to the terms, provisions and
conditions of the

                                       B-1
<PAGE>   44

Trust Agreement, to which Trust Agreement the Holder of this Trust Certificate
by virtue of its acceptance hereof assents and by which such Holder is bound.
The property of the Trust includes, among other things, (i) a pool of retail
installment sale contracts (the "Contracts") for new and used automobiles and
light duty trucks (the "Financed Vehicles") and (ii) the Certificate Policy.

        Under the Trust Agreement, there will be distributed on each January 20,
April 20, July 20 and October 20, of each year or, if any such day is not a
Business Day, the next succeeding Business Day (each, a "Distribution Date"),
commencing on __________ 20, 20__ and ending no later than __________ 20, 20__
to the person in whose name this Trust Certificate is registered at the close of
business on the last calendar day immediately preceding the related Distribution
Date (the "Record Date"), such Certificateholder's Certificate Percentage
Interest in the amount to be distributed to Certificateholders on such
Distribution Date.

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

        It is the intent of the Seller, the Master Servicer, the Company and the
Certificateholders that, for purposes of federal income, state and local income
and single business tax and any other income taxes, the Trust will be treated as
a partnership and the Certificateholders (including the Company) will be treated
as partners in that partnership. The Company and the other Certificateholders,
by acceptance of a Trust Certificate, agree to treat, and to take no action
inconsistent with the treatment of, the Trust Certificates for such tax purposes
as partnership interests in the Trust.

        Each Certificateholder, by its acceptance of a Trust Certificate
covenants and agrees that such Certificateholder or Certificate Owner, as the
case may be, will not at any time institute against the Trust, the Seller, the
Depositor or the Company, or join in any institution against the Trust, the
Seller, the Depositor or the Company 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 Trust Certificates, the Notes, the Trust
Agreement or any of the other Basic Documents.

        Distributions on this Trust Certificate will be made as provided in the
Trust Agreement by the Owner Trustee by wire transfer or check mailed to the
Certificateholder of record in the Certificate Register without the presentation
or surrender of this Trust Certificate or the making of any notation hereon.
Except as otherwise provided in the Trust Agreement and notwithstanding the
above, the final distribution on this Trust Certificate will be made after due
notice by the Owner Trustee of the pendency of such distribution and only upon
presentation and surrender of this Trust Certificate at the office of the Paying
Agent or the office or agency maintained for that purpose by the Owner Trustee
in The City of New York.

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

                                       B-2
<PAGE>   45

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

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

                                       B-3
<PAGE>   46

                            [REVERSE OF CERTIFICATE]

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

        The Trust Agreement permits, with certain exceptions therein provided,
the amendment thereof and the modification of the rights and obligations of the
parties thereto and the rights of the Certificateholders under the Trust
Agreement at any time by the parties thereto with the consent of Holders of
Trust Certificates evidencing not less than 51% of the aggregate Certificate
Percentage Interest and, if such amendment materially and adversely affects the
interests of the Noteholders, with the consent of Holders of Notes evidencing
not less than 51% of the Outstanding Amount of the Notes. Any such consent by
the Holder of this Trust Certificate shall be conclusive and binding on such
Holder and on all future Holders of this Trust Certificate and of any Trust
Certificate issued upon the transfer hereof or in exchange herefor or in lieu
hereof, whether or not notation of such consent is made upon this Trust
Certificate. The Trust Agreement also permits the amendment thereof, in certain
limited circumstances, without the consent of the Holders of any of the Trust
Certificates or the Notes.

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

        As provided in the Trust Agreement and subject to certain limitations
therein set forth, Trust Certificates are exchangeable for new Trust
Certificates of authorized denominations evidencing the same Certificate
Percentage Interest, as requested by the Holder surrendering the same. No
service charge will be made for any such registration of transfer or exchange,
but the Owner Trustee or the Certificate Registrar may require payment of a sum
sufficient to cover any tax or governmental charge payable in connection
therewith.

        The Owner Trustee, the Certificate Registrar, the Paying Agent and any
of their respective agents may treat the Person in whose name this Trust
Certificate is registered as the

                                      B-4
<PAGE>   47

owner hereof for all purposes, and none of the Owner Trustee, the Certificate
Registrar, the Paying Agent or any such agent shall be affected by any notice to
the contrary.

        The obligations and responsibilities created by the Trust Agreement and
the Trust created thereby shall terminate upon the payment to Certificateholders
of all amounts required to be paid to them pursuant to the Trust Agreement and
the Sale and Servicing Agreement and the disposition of all property held as
part of the Trust Estate. The Seller may at its option purchase the Trust Estate
at a price specified in the Sale and Servicing Agreement, and such purchase of
the Contracts and other property of the Trust will effect early retirement of
the Trust Certificates; however, such right of purchase is exercisable only as
of any Distribution Date as of which the Aggregate Scheduled Balance is less
than or equal to 10% of the Cut-Off Date Aggregate Scheduled Balance.

        The Trust Certificates may not be acquired by a Benefit Plan. By
accepting and holding this Trust Certificate, the Holder hereof shall be deemed
to have represented and warranted that it is not a Benefit Plan and is not
acquiring this Trust Certificate or an interest therein for the account of a
Benefit Plan.

                                      B-5
<PAGE>   48

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

Dated: __________ __, 20__              WFS FINANCIAL 20__-_ OWNER TRUST

                                        By:   CHASE MANHATTAN BANK DELAWARE, not
                                              in its individual capacity but
                                              solely as Owner Trustee

                                        By:
                                            ------------------------------------
                                                      Authorized Signatory

                  OWNER TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

THE CHASE MANHATTAN BANK,                     CHASE MANHATTAN BANK DELAWARE, not
as Authenticating Agent                       in its individual capacity but
                                              solely as Owner Trustee

                                       OR

By:                                       By:
    ----------------------------------         ---------------------------------
           Authorized Signatory                        Authorized Signatory

                                      B-6
<PAGE>   49

                                   ASSIGNMENT

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

PLEASE INSERT SOCIAL SECURITY OR
OTHER IDENTIFYING NUMBER OF ASSIGNEE

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

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

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

Dated:
      ---------------
Signature Guaranteed:

------------------------------------            --------------------------------
NOTICE: Signature(s) must be                    NOTICE: The signature to this
guaranteed by an eligible guarantor             assignment must correspond with
institution.                                    the name of the registered owner
                                                as it appears on the face of the
                                                within Trust Certificate in
                                                every particular, without
                                                alteration or enlargement or any
                                                change whatever.

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