Document:

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                                                                  EXECUTION COPY

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                      AMENDED AND RESTATED TRUST AGREEMENT

                                     between

                     LONG BEACH ACCEPTANCE RECEIVABLES CORP.

                                       and

                            WILMINGTON TRUST COMPANY
                                  Owner Trustee

                            Dated as of July 1, 2004

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                                                TABLE OF CONTENTS
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Article I. Definitions.........................................................................................1

     SECTION 1.1.          Capitalized Terms...................................................................1
     SECTION 1.2.          Other Definitional Provisions.......................................................2

Article II. Organization.......................................................................................3

     SECTION 2.1.          Name................................................................................3
     SECTION 2.2.          Office..............................................................................3
     SECTION 2.3.          Purposes and Powers.................................................................3
     SECTION 2.4.          Appointment of Owner Trustee........................................................7
     SECTION 2.5.          Initial Capital Contribution to the Trust...........................................7
     SECTION 2.6.          Declaration of Trust................................................................7
     SECTION 2.7.          Title to Owner Trust Estate.........................................................7
     SECTION 2.8.          Situs of Trust......................................................................7
     SECTION 2.9.          Representations and Warranties of the Transferor....................................7
     SECTION 2.10.         Covenants of the Certificateholder..................................................9
     SECTION 2.11.         Federal Income Tax Treatment of the Trust..........................................10

Article III. Certificate and Transfer of Interest.............................................................12

     SECTION 3.1.          Initial Ownership..................................................................12
     SECTION 3.2.          The Certificate....................................................................12
     SECTION 3.3.          Authentication of Certificate......................................................12
     SECTION 3.4.          Registration of Certificate........................................................12
     SECTION 3.5.          Mutilated, Destroyed, Lost or Stolen Certificate...................................13
     SECTION 3.6.          Persons Deemed Certificateholders..................................................14
     SECTION 3.7.          Transfer of the Class R Certificate................................................14
     SECTION 3.8.          Disposition In Whole But Not In Part...............................................16

Article IV. Voting Rights and Other Actions...................................................................16

     SECTION 4.1.          Prior Notice to Certificateholder with Respect to Certain Matters..................16
     SECTION 4.2.          Action by Certificateholder with Respect to Certain Matters........................16
     SECTION 4.3.          Restrictions on Certificateholder's Power..........................................17
     SECTION 4.4.          Rights of Note Insurer.............................................................17

Article V. Authority and Duties of Owner Trustee..............................................................18

     SECTION 5.1.          General Authority..................................................................18
     SECTION 5.2.          General Duties.....................................................................18
     SECTION 5.3.          Action upon Instruction............................................................19
     SECTION 5.4.          No Duties Except as Specified in this Agreement or in Instructions.................20
     SECTION 5.5.          No Action Except under Specified Documents or Instructions.........................20
     SECTION 5.6.          Restrictions.......................................................................20

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Article VI. Concerning the Owner Trustee......................................................................20

     SECTION 6.1.          Acceptance of Trusts and Duties....................................................20
     SECTION 6.2.          Furnishing of Documents............................................................22
     SECTION 6.3.          Representations and Warranties.....................................................22
     SECTION 6.4.          Reliance; Advice of Counsel........................................................23
     SECTION 6.5.          Not Acting in Individual Capacity..................................................23
     SECTION 6.6.          Owner Trustee Not Liable for Certificate or Receivables............................23
     SECTION 6.7.          Owner Trustee May Own Notes........................................................24
     SECTION 6.8.          Payments from Owner Trust Estate...................................................24
     SECTION 6.9.          Doing Business in Other Jurisdictions..............................................24

Article VII. Compensation of Owner Trustee....................................................................25

     SECTION 7.1.          Owner Trustee's Fees and Expenses..................................................25
     SECTION 7.2.          Indemnification....................................................................25
     SECTION 7.3.          Payments to the Owner Trustee......................................................25
     SECTION 7.4.          Non-recourse Obligations...........................................................25

Article VIII. Termination of Trust Agreement..................................................................25

     SECTION 8.1.          Termination of Trust Agreement.....................................................25

Article IX. Successor Owner Trustees and Additional Owner Trustees............................................26

     SECTION 9.1.          Eligibility Requirements for Owner Trustee.........................................26
     SECTION 9.2.          Resignation or Removal of Owner Trustee............................................27
     SECTION 9.3.          Successor Owner Trustee............................................................27
     SECTION 9.4.          Merger or Consolidation of Owner Trustee...........................................28
     SECTION 9.5.          Appointment of Co-Indenture Trustee or Separate Indenture Trustee..................28

Article X. Miscellaneous......................................................................................30

     SECTION 10.1.         Supplements and Amendments.........................................................30
     SECTION 10.2.         No Legal Title to Owner Trust Estate in Certificateholder..........................31
     SECTION 10.3.         Limitations on Rights of Others....................................................31
     SECTION 10.4.         Notices............................................................................31
     SECTION 10.5.         Severability.......................................................................33
     SECTION 10.6.         Separate Counterparts..............................................................33
     SECTION 10.7.         Assignments........................................................................33
     SECTION 10.8.         No Recourse........................................................................33
     SECTION 10.9.         Headings...........................................................................33
     SECTION 10.10.        GOVERNING LAW......................................................................33
     SECTION 10.11.        Servicer...........................................................................34
     SECTION 10.12.        Limitation on Liability............................................................34
     SECTION 10.13.        No Petition........................................................................34

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     SECTION 10.14.        Bankruptcy Matters.................................................................34
     SECTION 10.15.        Effect of Policy Expiration Date...................................................34
     SECTION 10.16.        Termination of Demand Note and/or Demand Note Guarantee............................35
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EXHIBITS
--------

Exhibit A    -    Form of Certificate of Trust

Exhibit B    -    Form of Class R Certificate

Exhibit C    -    Form of Transferee's Certificate for Qualified Institutional
                  Buyers

Exhibit D    -    Form of Transferee's Certificate for Institutional Accredited
                  Investors

Exhibit E    -    Form of Transferor's Certificate

Exhibit F    -    Form of ERISA Certificate

Exhibit G    -    Form of Flow Through Entity Certificate

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                    AMENDED AND RESTATED TRUST AGREEMENT dated as of July 1,
2004 between LONG BEACH ACCEPTANCE RECEIVABLES CORP., a Delaware corporation
(the "Transferor"), and Wilmington Trust Company, a Delaware banking
corporation, acting hereunder not in its individual capacity but solely as Owner
Trustee (in such capacity, the "Owner Trustee").

                    WHEREAS, the Transferor and the Owner Trustee have entered
into a Trust Agreement dated as of July 1, 2004 (the "Original Trust
Agreement"); and

                    WHEREAS, the Transferor and the Owner Trustee wish to amend
and restate the Original Trust Agreement by entering into this Agreement.

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

                                   ARTICLE I.

                                   Definitions

                    SECTION 1.1. Capitalized Terms. For all purposes of this
Agreement, the following terms shall have the meanings set forth below, terms
defined in the singular shall include the plural:

                    "Agreement" shall mean this Amended and Restated Trust
Agreement, as the same may be further amended and supplemented from time to
time.

                    "Certificate" shall mean the Class R Certificate.

                    "Certificate of Trust" shall mean the Certificate of Trust
in the form of Exhibit A to be filed for the Trust pursuant to Section 3810(a)
of the Statutory Trust Act.

                    "Certificate Register" and "Certificate Registrar" shall
mean the register mentioned and the registrar appointed pursuant to Section 3.4.

                    "Certificateholder," "Class R Certificateholder" or "Holder"
shall mean the person in whose name a Certificate is registered on the
Certificate Register.

                    "Class R Certificate" means a trust certificate evidencing
the entire beneficial interest in the Trust, substantially in the form of
Exhibit B attached hereto.

                    "Derivative Contract" means any ISDA Master Agreement,
together with the related Schedule and Confirmation, entered into by the Trust
and a Derivative Counterparty in accordance with Section 2.12.

                    "Derivative Counterparty" means any counterparty to a
Derivative Contract as provided in Section 2.12.

                    "Instructing Party" shall have the meaning assigned to such
term in Section 5.3.

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                    "Master Loan Agreement" means the Master Loan Agreement,
dated as of October 30, 2003, among LBARC-WI, as borrower, LBAC and CIGPF I
Inc., as lender, as the same may be amended, supplemented or otherwise modified
from time to time in accordance with the terms thereof.

                    "Non-Registered Trust Certificate" means a Certificate other
than a Registered Trust Certificate.

                    "Owner Trust Estate" shall mean all right, title and
interest of the Trust in and to the property and rights assigned to the Trust
pursuant to Article II of the Sale and Servicing Agreement and pursuant to each
Transfer Agreement, all funds on deposit from time to time in Collection
Account, the Pre-Funding Account, the Capitalized Interest Account or the Note
Account 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 Spread Account Agreement.

                    "Registered Trust Certificate" means a Certificate that was
sold pursuant to a registration statement that has been filed and has become
effective under the Securities Act.

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

                    "Statutory Trust Act" shall mean Chapter 38 of Title 12 of
the Delaware Code, 12 Del. Code ss. 3801 et. seq. as the same may be amended
from time to time.

                    "Transferee's Certificate" means a certificate in the form
of Exhibits C or D hereto.

                    "Transferor's Certificate" means a certificate in the form
of Exhibit E hereto.

                    "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.

                    "WTC" means Wilmington Trust Company, a Delaware banking
corporation, in its individual capacity.

                    SECTION 1.2. Other Definitional Provisions.

                         (a) Capitalized terms used herein and not otherwise
     defined herein have the meanings assigned to them in Annex A to the Sale
     and Servicing Agreement.

                         (b) All terms defined in this Agreement shall have the
     defined meanings when used in any certificate or other document made or
     delivered pursuant hereto unless otherwise defined therein.

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                         (c) As used in this Agreement and in any certificate or
     other document made or delivered pursuant hereto or thereto, accounting
     terms not defined in this Agreement or in any such certificate or other
     document, and accounting terms partly defined in this Agreement or in any
     such certificate or other document to the extent not defined, shall have
     the respective meanings given to them under generally accepted accounting
     principles as in effect on the date of this Agreement or any such
     certificate or other document, as applicable. To the extent that the
     definitions of accounting terms in this Agreement or in any such
     certificate or other document are inconsistent with the meanings of such
     terms under generally accepted accounting principles, the definitions
     contained in this Agreement or in any such certificate or other document
     shall control.

                         (d) The words "hereof," "herein," "hereunder" and words
     of similar import when used in this Agreement shall refer to this Agreement
     as a whole and not to any particular provision of this Agreement; Section
     and Exhibit references contained in this Agreement are references to
     Sections and Exhibits in or to this Agreement unless otherwise specified;
     and the term "including" shall mean "including without limitation."

                         (e) The definitions contained in this Agreement are
     applicable to the singular as well as the plural forms of such terms and to
     the masculine as well as to the feminine and neuter genders of such terms.

                                  ARTICLE II.

                                  Organization

                    SECTION 2.1. Name. There is hereby formed a trust to be
known as "Long Beach Acceptance Auto Receivables Trust 2004-B," in which name
the Owner Trustee may conduct the business of the Trust, make and execute
contracts and other instruments on behalf of the Trust and sue and be sued on
behalf of the Trust.

                    SECTION 2.2. Office. The principal office of the Trust, and
such additional offices as the Class R Certificateholder may direct the Owner
Trustee to establish, shall be located at such place or places inside or outside
the State of Delaware as the Class R Certificateholder may unanimously designate
from time to time. The Class R Certificateholder hereby designates the office of
the Owner Trustee at Rodney Square North, 1100 North Market Street, Wilmington,
Delaware 19890-0001, Attention: Corporate Trust Administration as the principal
office of the Trust.

                    SECTION 2.3. Purposes and Powers. The Trust and the parties
to this Agreement shall be subject to the following provisions regarding the
purposes, powers and procedures of the Trust:

                         (a) The purpose of the Trust is to engage solely in the
     following activities:

               (i) to acquire the Owner Trust Estate pursuant to Article II of
          the Sale and Servicing Agreement and each Transfer Agreement, as
          applicable;

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               (ii) to issue the Notes pursuant to the Indenture and the Class R
          Certificate pursuant to this Agreement, to sell and exchange the Notes
          and to transfer the Class R Certificate to the Transferor and to pay
          interest on and principal of the Notes and distributions on the
          Certificate;

               (iii) with the proceeds of the sale of the Notes, to fund the
          Pre-Funding Account, the Capitalized Interest Account and the Spread
          Account and to pay the balance to the Transferor pursuant to the Sale
          and Servicing Agreement;

               (iv) to assign, grant, transfer, pledge, mortgage and convey the
          Pledged Property to the Indenture Trustee pursuant to the Indenture
          for the benefit of the Note Insurer and the Noteholders and to hold,
          manage and distribute to the Certificateholder pursuant to the terms
          of the Sale and Servicing Agreement, each Transfer Agreement and the
          Spread Account Agreement any portion of the Pledged Property released
          from the Lien of the Indenture;

               (v) at the direction of the Transferor and subject to the
          requirements set forth in Section 2.12 hereof, to enter into
          Derivative Contracts for the benefit of the Class R Certificateholder;

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

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

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

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

                         (b) The Trust's only assets shall be the Owner Trust
     Estate. Other than the Notes, the Trust shall not secure any indebtedness
     with any of the Owner Trust Estate.

                         (c) Other than with respect to the transfer to the
     Trust of the Trust Assets, the Trust shall not do any of the following:
     acquire any obligations of, make loans or advances to, borrow funds from,
     assume or guarantee the obligations or liabilities of, have its obligations
     or liabilities guaranteed by, or hold itself out as responsible for the
     debts and obligations of the Owner Trustee, the Certificateholder, LBAC,
     LBARC-WI, the Indenture Trustee or any other person or entity.

                         (d) The Owner Trustee shall not manage, control, use,
     sell, dispose of or otherwise deal with any part of the Owner Trust Estate
     except in accordance with the specific

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     limitations set forth in this Agreement and the other Basic Documents to
     which the Trust is a party.

                         (e) The Trust shall, in all dealings with the public,
     identify itself under the name of the Trust and as a separate and distinct
     entity from any other Person or entity. All transactions and agreements
     between the Trust and third parties shall be conducted in the name of the
     Trust as an entity separate and independent from the Owner Trustee, the
     Indenture Trustee, the Transferor, LBAC and the Certificateholder.

                         (f) All transactions and agreements between the Trust,
     on the one hand, and any of WTC, the Owner Trustee, the Indenture Trustee,
     the Trust Collateral Agent, the Custodian, the Transferor, LBAC, the Class
     R Certificateholder, on the other hand, shall reflect the separate legal
     existence of each entity and will be formally documented in writing. The
     pricing and other material terms of all such transactions and agreements
     shall be on terms substantially similar to those that would be available on
     an arm's-length basis with unaffiliated third parties.

                         (g) The Trust shall not commingle its funds and other
     assets with those of any other Person or business entity and shall maintain
     its assets and liabilities in such a manner that it shall not be costly or
     difficult to segregate, ascertain or identify its individual assets and
     liabilities from those of any other person or entity. The Owner Trustee
     shall hold the Owner Trust Estate on behalf of the Trust.

                         (h) The Trust shall pay its liabilities and losses as
     they become due from the Owner Trust Estate, provided, however, that none
     of the Owner Trust Estate shall be used to pay the liabilities (including
     liability in respect of guaranties) and losses of WTC, the Transferor,
     LBAC, the Indenture Trustee, the Trust Collateral Agent, the Custodian or
     the Certificateholder. The Trust has been structured to maintain capital in
     an amount reasonably sufficient to meet the anticipated needs of the Trust.

                         (i) The Trust shall not share any of the same officers
     or other employees with the Servicer, the Transferor, LBAC, the Indenture
     Trustee, the Trust Collateral Agent, the Custodian or the
     Certificateholder.

                         (j) The Trust shall not, jointly with the Servicer, the
     Transferor, LBAC, the Indenture Trustee, the Trust Collateral Agent, the
     Custodian or the Certificateholder contract or do business with vendors or
     service providers or share overhead expenses.

                         (k) The Trust shall maintain its own bank accounts,
     books and records and annual financial statements prepared in accordance
     with generally accepted accounting principles, separate from those of WTC,
     the Owner Trustee, the Indenture Trustee, the Trust Collateral Agent, the
     Custodian, the Transferor, LBAC, LBARC-WI and the Certificateholder. The
     foregoing will reflect that the assets and liabilities of and all
     transactions and transfers of funds involving the Trust shall be separate
     from those of each such other entity, and the Trust shall pay or bear the
     cost of the preparation of its own financial statements and shall not pay
     or bear the cost of the preparation of the financial statements of any such
     other entity. Neither the accounting records nor the financial

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     statements of the Trust will indicate that the Owner Trust Estate is
     available to pay creditors of WTC, the Indenture Trustee, the Trust
     Collateral Agent, the Custodian, the Transferor, LBAC, LBARC-WI or the
     Certificateholder or any other person or entity.

                         (l) The Owner Trustee shall not have the power to
     commence a voluntary proceeding in bankruptcy relating to the Trust without
     the prior approval of the Certificateholder and the Transferor and the
     delivery to the Owner Trustee by each of the Certificateholder and the
     Transferor of a certificate stating that such entity reasonably believes
     that the Trust is insolvent.

                         (m) Each of the Owner Trustee and the Transferor
     covenants and agrees that it will not at any time institute against the
     Certificateholder, or join in any institution against the Certificateholder
     of any bankruptcy, reorganization, arrangement, insolvency or liquidation
     proceeding or other proceeding under any United States of America federal
     or state bankruptcy or similar law in connection with any obligations
     relating to the Certificate or this Agreement. The Owner Trustee and the
     Transferor each covenants and agrees that it will not, in any capacity,
     seek the substantive consolidation of the assets of the Trust with the
     Certificateholder.

                         (n) The Class R Certificate cannot be transferred other
     than pursuant to Section 3.7.

                         (o) The Owner Trustee may, pursuant to Section 5.2 of
     this Agreement, delegate certain administrative duties relating to the
     Trust to specified entities (other than the Class R Certificateholder),
     which will be authorized to prepare on behalf of the Trust all documents,
     reports, filings, instruments, certificates and opinions as it shall be the
     duty of the Trust to prepare, file and deliver. However, the Owner Trustee
     may not delegate any such administrative duties to the Class R
     Certificateholder, and the Class R Certificateholder may not perform any of
     the Trust's duties or obligations.

                         (p) The Class R Certificate shall entitle the Class R
     Certificateholder only to the benefits and distributions as are expressly
     set forth in this Agreement.

                         (q) The Trust and this Agreement may not be revoked or
     terminated except in accordance with Section 8.1 of this Agreement and in
     no event shall the Certificateholder have the ability to terminate the
     Trust unilaterally.

                         (r) The Trust shall not consensually merge or
     consolidate with any of WTC, the Owner Trustee, the Transferor, LBAC,
     LBARC-WI or the Certificateholder.

                         (s) Neither the Transferor nor the Certificateholder
     shall request or instruct the Owner Trustee to take or refrain from taking
     any action if such action or inaction would be contrary to any obligation
     of the Trust or the Owner Trustee under this Agreement or contrary to the
     limited purposes of the Trust, and the Owner Trustee shall be under no
     obligation to comply with any such request or instruction if given.

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

                    SECTION 2.5. Initial Capital Contribution to the Trust. The
Transferor hereby sells, assigns, transfers, conveys and sets over to the Owner
Trustee, as of the date hereof, the sum of $1. The Owner Trustee hereby
acknowledges receipt in trust from the Transferor, as of the date hereof, of the
foregoing contribution, which shall constitute the initial property of the
Trust. The Transferor shall pay organizational expenses of the Trust as they may
arise.

                    SECTION 2.6. Declaration of Trust. The Owner Trustee hereby
declares that it will hold the Owner Trust Estate for the use and benefit of the
Certificateholder in trust upon and subject to the conditions set forth herein,
subject to the obligations of the Trust under the Basic Documents. It is the
intention of the parties hereto that the Trust constitute a statutory trust
under the Statutory Trust Act and that this Agreement constitute the governing
instrument of such statutory trust. Effective as of the date hereof, the Owner
Trustee shall have all rights, powers and duties set forth herein and to the
extent not inconsistent herewith, in the Statutory Trust Act with respect to
accomplishing the purposes of the Trust. The Owner Trustee shall file the
Certificate of Trust with the Secretary of State.

                    The Certificateholder shall not have any personal liability
for any liability or obligation of the Trust.

                    SECTION 2.7. Title to Owner Trust Estate

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

                         (b) The Certificateholder shall not have legal title to
     any part of the Owner Trust Estate. The Class R Certificateholder shall be
     entitled to receive distributions with respect to its undivided ownership
     interest therein only in accordance with the Sale and Servicing Agreement
     and the Spread Account Agreement. No transfer, by operation of law or
     otherwise, of any right, title or interest by the Class R Certificateholder
     of its ownership interest in the Owner Trust Estate shall operate to
     terminate this Agreement or the trusts hereunder or entitle any transferee
     to an accounting or to the transfer to it of legal title to any part of the
     Owner Trust Estate.

                    SECTION 2.8. Situs of Trust. The Trust shall be administered
in the State of Delaware.

                    SECTION 2.9. Representations and Warranties of the
Transferor. The Transferor makes the following representations and warranties on
which the Owner Trustee relies in accepting the Trust Assets in trust and
issuing the Certificate and upon which the Note Insurer relies in issuing the
Policy:

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                         (a) Organization and Good Standing. The Transferor is
     duly organized and validly existing as a Delaware corporation with power
     and authority to own its properties and to conduct its business as such
     properties are currently owned and such business is presently conducted and
     is proposed to be conducted pursuant to this Agreement and the Basic
     Documents to which it is a party.

                         (b) Due Qualification. The Transferor is duly qualified
     to do business as a foreign corporation in good standing, and has obtained
     all necessary licenses and approvals, in all jurisdictions in which the
     ownership or lease of its property, the conduct of its business and the
     performance of its obligations under this Agreement and the Basic Documents
     to which it is a party requires such qualification.

                         (c) Power; Authority; Execution; Enforceability. The
     Transferor has the corporate power and authority to execute and deliver
     this Agreement and to carry out its terms; the Transferor has full power
     and authority to sell and assign the property to be conveyed and assigned
     to and deposited with the Trust and the Transferor has duly authorized such
     conveyance and assignment and deposit to the Trust by all necessary
     corporate action; and the execution, delivery and performance of this
     Agreement and the other Basic Documents to which it is a party has been
     duly authorized by the Transferor by all necessary corporate action. The
     Transferor has duly executed this Agreement and the other Basic Documents
     to which it is a party, and this Agreement and the other Basic Documents to
     which it is a party constitute the legal, valid and binding obligations of
     the Transferor, enforceable against the Transferor in accordance with their
     terms.

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

                         (e) No Violation. The consummation of the transactions
     contemplated by this Agreement and the other Basic Documents and the
     fulfillment of the terms hereof and thereof do not conflict with, result in
     any breach of any of the terms and provisions of, or constitute (with or
     without notice or lapse of time) a default under, the certificate of
     incorporation or by-laws of the Transferor, or any indenture, agreement or
     other instrument to which the Transferor is a party or by which it is
     bound; nor result in the creation or imposition of any Lien upon any of its
     properties pursuant to the terms of any such indenture, agreement or other
     instrument (other than pursuant to the Basic Documents); nor violate any
     law or, to the best of the Transferor's knowledge, any order, rule or
     regulation applicable to the Transferor of any court or of any federal or
     state regulatory body, administrative agency or other governmental
     instrumentality having jurisdiction over the Transferor or its properties.

                         (f) No Proceedings. There are no proceedings or
     investigations pending or, to its knowledge threatened against it before
     any court, regulatory body, administrative agency or other tribunal or
     governmental instrumentality having

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     jurisdiction over it or its properties (A) asserting the invalidity of this
     Agreement or any of the Basic Documents to which the Transferor is a party,
     (B) seeking to prevent the issuance of the Certificate or the Notes or the
     consummation of any of the transactions contemplated by this Agreement or
     any of the Basic Documents to which the Transferor is a party, (C) seeking
     any determination or ruling that might materially and adversely affect its
     performance of its obligations under, or the validity or enforceability of,
     this Agreement or any of the Basic Documents to which the Transferor is a
     party, or (D) seeking to adversely affect the federal income tax or other
     federal, state or local tax attributes of the Notes or the Certificate.

                         (g) No Liens. Upon the conveyance, assignment or other
     transfer of any of the Trust Assets by the Transferor to the Trust pursuant
     to the Sale and Servicing Agreement and each Transfer Agreement, the
     Transferor will have conveyed to the Trust good title, free and clear of
     any lien, encumbrance or other interests of others (including any claim of
     any creditor of the Transferor or any of its Affiliates) of any nature and
     the Trust will have the right to Grant and deliver the Pledged Property to
     the Indenture Trustee in accordance with the Indenture and upon the Grant
     and delivery of the Pledged Property by the Trust to the Indenture Trustee
     in the manner contemplated by the Indenture, and assuming the validity and
     binding effect of the Indenture, the Indenture Trustee will have obtained a
     valid first priority security interest therein, prior to all liens.

                         (h) Records. Immediately upon the sale or other
     delivery of any Trust Assets to the Trust pursuant to the Sale and
     Servicing Agreement and each Transfer Agreement, the Transferor will make
     any appropriate notations on its records to indicate that the Trust Assets
     have been transferred to the Trust pursuant to the Sale and Servicing
     Agreement, each Transfer Agreement and, to the extent it constitutes
     Pledged Property, has been pledged by the Trust to the Indenture Trustee to
     secure payment of the Notes.

                         (i) No Bankruptcy Petition. The Transferor has no
     present intent to cause a voluntary bankruptcy of the Trust.

                         (j) Separate Entity. The Transferor will hold itself
     out to the public under its own name as a separate and distinct entity and
     conduct its business so as not to mislead others as to the identity of the
     entity under which those others are concerned. Without limiting the
     generality of the foregoing, all oral and written communications, including
     all letters, invoices, contracts, statements and applications will be made
     solely in the name of the Trust if they are made on behalf of the Trust and
     solely in the name of the Transferor if they are made on behalf of the
     Transferor.

                         (k) Financial Statements. The Transferor will disclose
     in all financial statements that the assets of the Trust are not available
     to the Transferor's creditors.

                    SECTION 2.10. Covenants of the Certificateholder. The
Certificateholder, by its acceptance of a Certificate, agrees:

                         (a) to be bound by the terms and conditions of the
     Certificate of which the Certificateholder is the beneficial owner and of
     this Agreement and the other Basic

                                       9
<PAGE>

     Documents, including any supplements or amendments hereto and thereto and
     to perform the obligations of a Certificateholder as set forth therein or
     herein, in all respects as if it were a signatory hereto. This undertaking
     is made for the benefit of the Trust, the Owner Trustee and the Note
     Insurer;

                         (b) until one year and one day after the completion of
     the events specified in Section 8.1(d), not to, for any reason, institute
     proceedings for the Trust to be adjudicated a bankrupt or insolvent, or
     consent to the institution of bankruptcy or insolvency proceedings against
     the Trust, or file a petition seeking or consenting to reorganization or
     relief under any applicable federal or state law relating to bankruptcy, or
     consent to the appointment of a receiver, liquidator, assignee, trustee,
     sequestrator (or other similar official) of the Trust or a substantial part
     of its property, or cause or permit the Trust to make any assignment for
     the benefit of its creditors, or admit in writing its inability to pay its
     debts generally as they become due, or declare or effect a moratorium on
     its debt or take any action in furtherance of any such action; and

                         (c) to execute and deliver such instruments of
     conveyance, assignment, grant, confirmation, as well as any financing
     statements, in each case, as the Note Insurer shall consider reasonably
     necessary in order to perfect the security interests of the Collateral
     Agent in the collateral pledged under the Spread Account Agreement.

                    SECTION 2.11. Federal Income Tax Treatment of the Trust.

                         (a) For so long as the Trust has a single owner for
     federal income tax purposes, it will, pursuant to Treasury Regulations
     promulgated under section 7701 of the Code, be disregarded as an entity
     distinct from the Certificateholder for all federal income tax purposes.
     Accordingly, for federal income tax purposes, the Certificateholder will be
     treated as (i) owning all assets owned by the Trust, (ii) having incurred
     all liabilities incurred by the Trust, and (iii) all transactions between
     the Trust and the Certificateholder will be disregarded. 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 foregoing characterization.

                         (b) In the event that the Trust has two or more equity
     owners for federal income tax purposes, the Trust will be treated as a
     partnership. At any such time that the Trust has two equity owners, this
     Agreement will be amended, in accordance with Section 10.1 herein, and
     appropriate provisions will be added so as to provide for treatment of the
     Trust as a partnership. In no event, however, will the Trust engage in any
     activity which would cause the Trust to become an association or publicly
     traded partnership, taxable as a corporation for federal income tax
     purposes.

                         (c) Neither the Owner Trustee nor any Certificateholder
     will, under any circumstances, and at any time, make an election on IRS
     From 8832 or otherwise, to classify the Trust as an association taxable as
     a corporation for federal, state or any other applicable tax purpose.

                                       10
<PAGE>

                    SECTION 2.12. Derivatives Contracts(a). (a) The Trust, at
the direction of the Transferor, shall execute and deliver Derivative Contracts
in such form as the Transferor shall approve, as evidenced conclusively by the
Trust's execution thereof, such Derivative Contracts being solely for the
benefit of the Class R Certificateholder; provided, however, that neither the
execution and delivery of any such Derivative Contract nor the consummation of
any transaction contemplated thereunder shall give rise to a non-exempt
prohibited transaction described in Section 406 of ERISA or 4975(c)(1) of the
Code. Any such Derivative Contract shall constitute a fully prepaid agreement.
Any acquisition of a Derivative Contract shall be accompanied by (i) an Opinion
of Counsel provided by, and at the expense of, the Transferor to the effect that
the existence of the Derivative Contract will not cause the Trust to be
characterized as a publicly traded partnership taxable as a corporation for
federal income tax purposes; (ii) the prior written consent of the Note Insurer
to the acquisition of such Derivative Contract, such consent not to be
unreasonably withheld; provided that such consent shall not be deemed to be
unreasonably withheld if the proposed Derivative Contract does not satisfy the
requirements set forth in clauses (b) and (c) below; and (iii) confirmation from
the Rating Agencies that the then-current rating of the Notes will not be
qualified, reduced or withdrawn (without regard to the Policy) as a result of
the acquisition of such Derivative Contract. Prior to the acquisition of any
Derivative Contracts by the Trust, the Trust at the direction and expense of the
Transferor, shall establish and maintain in its own name an Eligible Account
(the "Derivative Contract Collection Account"), bearing a designation clearly
indicating that the funds deposited therein are held for the benefit of the
Trust on behalf of the Class R Certificateholder. All collections, proceeds and
other amounts in respect of the Derivative Contracts payable by the Derivative
Counterparty shall be deposited into the Derivative Contract Collection Account
for distribution to the Class R Certificateholder on the Distribution Date
following receipt thereof by the Trust.

                         (b) No Derivative Contract shall provide for any
     payment obligation on the part of the Trust. Each Derivative Contract must
     (i) contain a non-petition covenant provision from the Derivative
     Counterparty, (ii) limit payment dates thereunder to Payment Dates and
     (iii) contain a provision limiting any cash payments due to the Derivative
     Counterparty on any day under such Derivative Contract solely to funds
     available therefore in the Collection Account to make payments to the
     Holder of the Class R Certificates on such Payment Date.

                         (c) Each Derivative Contract must (i) provide for the
     direct payment of any amounts by the Derivative Counterparty thereunder to
     the Note Account at least one Business Day prior to the related Payment
     Date, (ii) provide that in the event of the occurrence of an Event of
     Default, such Derivative Contract shall terminate upon the direction of a
     majority Percentage Interest of the Class R Certificateholders, (iii)
     prohibit the Derivative Counterparty from "setting-off" or "netting" other
     obligations of the Trust and its Affiliates against such Derivative
     Counterparty's payment obligations thereunder and (iv) satisfy the Rating
     Agency Condition.

                                       11
<PAGE>

                                  ARTICLE III.

                      Certificate and Transfer of Interest

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

                    SECTION 3.2. The Certificate. The Certificate shall be
executed on behalf of the Trust by manual or facsimile signature of an
authorized officer of the Owner Trustee. A Certificate bearing the manual or
facsimile signatures of individuals who were, at the time when such signatures
shall have been affixed, authorized to sign on behalf of the Trust, shall be
validly issued and entitled to the benefit of this Agreement, notwithstanding
that such individuals or any of them shall have ceased to be so authorized prior
to the authentication and delivery of such Certificate or did not hold such
offices at the date of authentication and delivery of such Certificate. A
transferee of a Certificate shall become a Certificateholder, and shall be
entitled to the rights and subject to the obligations of a Certificateholder
hereunder, upon due registration of such Certificate in such transferee's name
pursuant to Section 3.4.

                    SECTION 3.3. Authentication of Certificate. Concurrently
with the conveyance of the Receivables to the Trust pursuant to the Sale and
Servicing Agreement, the Owner Trustee shall cause the Class R Certificate to be
executed on behalf of the Trust, authenticated and delivered to or upon the
written order of the Transferor, signed by its chairman of the board, its
president or any vice president, its treasurer or any assistant treasurer
without further corporate action by the Transferor, in authorized denominations.
No Class R Certificate shall entitle its holder to any benefit under this
Agreement, or shall be valid for any purpose, unless there shall appear on such
Class R Certificate a certificate of authentication substantially in the form
set forth in Exhibit B, executed by the Owner Trustee or WTC as the Owner
Trustee's authentication agent, by manual signature; such authentication shall
constitute conclusive evidence that such Class R Certificate shall have been
duly authenticated and delivered hereunder. The Class R Certificate shall be
dated the date of its authentication.

                    SECTION 3.4. Registration of Certificate

                         (a) The Certificate Registrar shall keep or cause to be
     kept, at the office or agency maintained pursuant to Section 2.2, a
     Certificate Register in which, subject to such reasonable regulations as it
     may prescribe, the Owner Trustee shall provide for the registration of the
     Certificate and of transfers and exchanges of the Certificate as herein
     provided. WTC shall be the initial Certificate Registrar.

                         (b) The Certificate Registrar shall provide the Trust
     Collateral Agent with the name and address of the Certificateholder on the
     Closing Date. Upon any transfer of a Certificate, the Certificate Registrar
     shall notify the Trust Collateral Agent of the name and address of the
     transferee in writing, by facsimile, on the day of such transfer.

                         (c) Upon surrender for registration of transfer of a
     Certificate at the office or agency maintained pursuant to Section 2.2, the
     Owner Trustee shall execute, authenticate and

                                       12
<PAGE>

     deliver (or shall cause WTC as its authenticating agent to authenticate and
     deliver), in the name of the designated transferee, a new Certificate dated
     the date of authentication by the Owner Trustee or any authenticating
     agent.

                         (d) A 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 Certificateholder or his
     attorney duly authorized in writing, with such signature guaranteed by an
     "eligible guarantor institution" meeting the requirements of the
     Certificate Registrar, which requirements include membership or
     participation in the Securities Transfer Agent's Medallion Program
     ("STAMP") or such other "signature guarantee program" as may be determined
     by the Certificate Registrar in addition to, or in substitution for, STAMP,
     all in accordance with the Exchange Act. Each Certificate surrendered for
     registration of transfer or exchange shall be canceled and subsequently
     disposed of by the Owner Trustee in accordance with its customary practice.

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

                         (f) In furtherance of and in limitation of the
     foregoing, the Certificateholder, by acceptance of its Certificate,
     specifically acknowledges that it has no right to or interest in any monies
     at any time held in the Spread Account prior to the release of such monies
     pursuant to Section 5.6(d) of the Sale and Servicing Agreement, such monies
     being held in trust for the benefit of the Class A Noteholders and the Note
     Insurer. Notwithstanding the foregoing, in the event that it is ever
     determined that provisions of the Sale and Servicing Agreement and the
     Spread Account Agreement shall be considered to constitute a security
     agreement and the Transferor and the Certificateholder hereby grant to the
     Collateral Agent for the benefit of the Class A Noteholders and the Note
     Insurer a first priority perfected security interest in such amounts, to be
     applied as set forth in Section 3.03 of the Spread Account Agreement and
     Section 5.6 of the Sale and Servicing Agreement. In addition, the Class R
     Certificateholder, by acceptance of its Certificate, hereby appoints the
     Transferor as its agent to pledge a first priority perfected security
     interest in the Spread Account, and any amounts held therein from time to
     time to the Collateral Agent pursuant to the Spread Account Agreement and
     agrees to execute and deliver such instruments of conveyance, assignment,
     grant and confirmation, as well as financing statements, in each case as
     the Note Insurer shall consider reasonably necessary in order to perfect
     the Collateral Agent's Security Interest in the Collateral (as such terms
     are defined in the Spread Account Agreement).

                    SECTION 3.5. Mutilated, Destroyed, Lost or Stolen
Certificate. If (a) any mutilated Certificate shall be surrendered to the
Certificate Registrar, or if the Certificate Registrar shall receive evidence to
its satisfaction of the destruction, loss or theft of any Certificate and (b)
there shall be delivered to the Certificate Registrar, the Owner Trustee and
(unless a Note Insurer Default shall have occurred and be continuing) the Note
Insurer, such security or indemnity as may be required by them to save each of
them harmless, then in the absence of notice that such Certificate shall have
been acquired by a bona fide purchaser, the

                                       13
<PAGE>

Owner Trustee on behalf of the Trust shall execute and the Owner Trustee, or
WTC, as the Owner Trustee's authenticating agent, shall authenticate and
deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or
stolen Certificate, a new Certificate of like class, tenor and denomination. In
connection with the issuance of any new Certificate under this Section, the
Owner Trustee or the Certificate Registrar may require the payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection therewith. Any duplicate Certificate issued pursuant to this Section
shall constitute conclusive evidence of an ownership interest in the Trust, as
if originally issued, whether or not the lost, stolen or destroyed Certificate
shall be found at any time.

                    SECTION 3.6. Persons Deemed Certificateholders. Every Person
by virtue of becoming a Certificateholder in accordance with this Agreement
shall be deemed to be bound by the terms of this Agreement. Prior to due
presentation of a Certificate for registration of transfer, the Owner Trustee,
the Certificate Registrar and the Note Insurer and any agent of the Owner
Trustee, the Certificate Registrar and the Note Insurer, may treat the person in
whose name any Certificate shall be registered in the Certificate Register as
the owner of such Certificate for the purpose of receiving distributions
pursuant to the Sale and Servicing Agreement and the Spread Account Agreement
and for all other purposes whatsoever, and none of the Owner Trustee, the
Certificate Registrar or the Note Insurer nor any agent of the Owner Trustee,
the Certificate Registrar or the Note Insurer shall be bound by any notice to
the contrary.

                    SECTION 3.7. Transfer of the Class R Certificate.

                         (a) No transfer of a Certificate shall be made unless
     (I) such transfer (x) is made pursuant to an effective registration
     statement under the Securities Act and any applicable state securities laws
     or (y) is exempt from the registration requirements under the Securities
     Act and such state securities laws and (II) such transfer is to a Person
     that satisfies the requirements of paragraph (a)(2)(i) or (a)(2)(ii) of
     Rule 3a-7 as then in effect or any successor rule ("Rule 3a-7") under the
     Investment Company Act.

                         (b) Each prospective purchaser of a Non-Registered
     Certificate not held in book-entry form (other than with respect to the
     initial transfer of the Certificate by the Transferor) shall deliver a
     completed and duly executed Transferee's Certificate (in the form of
     Exhibit C hereto for "qualified institutional buyers" as defined in Rule
     144A of the Securities Act ("Rule 144A") or Exhibit D hereto for
     "accredited investors" as defined in Rule 501(a)(1), (2), (3) or (7) of
     Regulation D promulgated under the Securities Act) to the Owner Trustee and
     to the Transferor for inspection prior to effecting any requested transfer.
     Each prospective seller of a Non-Registered Certificate (other than with
     respect to the initial transfer of any such Certificate by the Transferor)
     shall deliver a completed and duly executed Transferor's Certificate (in
     the form of Exhibit E hereto) to the Owner Trustee for inspection prior to
     effecting any requested transfer. The Transferor and the Owner Trustee may
     conclusively rely upon the information contained in any such Transferee's
     Certificate or Transferor's Certificate in the absence of actual knowledge
     to the contrary.

                         (c) In connection with any transfer, the Owner Trustee
     may (except in the case of (x) the initial transfer of any such Certificate
     by the Transferor, (y) a transfer to a "qualified institutional buyer" who
     delivers a Transferee's Certificate in the form of Exhibit C hereto, or

                                       14
<PAGE>

     (z) a transfer to a "accredited investor" who delivers a Transferee's
     Certificate in the form of Exhibit D hereto) require an opinion of counsel
     satisfactory to the Owner Trustee and the Transferor to the effect that
     such transfer may be effected without registration under the Securities
     Act, which opinion of counsel, if so required, shall be addressed to the
     Transferor and the Owner Trustee and shall be secured at the expense of the
     holder of a Certificate. The Owner Trustee may conclusively rely upon the
     representation of any purchaser made to the Owner Trustee, and upon such
     opinion of counsel, and shall be fully protected in so doing.

                         (d) No transfer of a Certificate shall be made to any
     Person unless the Owner Trustee has received a certificate (substantially
     in the form of Exhibit F hereto) from such transferee to the effect that
     such transferee is not a Plan, and is not acting on behalf of or investing
     the assets of a Plan. The preparation and delivery of the certificate
     referred to above shall not be an expense of the Trust, the Owner Trustee
     or the Transferor but shall be borne by the transferee. Each transferee of
     a beneficial ownership interest in a book-entry Certificate shall be deemed
     to represent that it is not a Plan and is not acting on behalf of or
     investing the assets of a Plan.

                         (e) No transfer of a Certificate shall be made to any
     Person unless the Owner Trustee and Transferor have received a certificate
     (substantially in the form of Exhibit G hereto) from such transferee to the
     effect that (i) such transferee is acquiring such certificate for its own
     behalf and is not acting as agent or custodian for any other Person or
     entity in connection with such acquisition, (ii) if the transferee is a
     partnership, grantor trust or S corporation for federal income tax purposes
     (a "Flow Through Entity"), any certificate (and interest in the Trust in
     the aggregate) owned by such Flow Through Entity will represent less than
     50% of the value of the assets owned by such Flow Through Entity and no
     special allocation of income, gain, loss, deduction or credit from such
     certificate will be made among the beneficial owners of such Flow Through
     Entity, and (iii) the transferee is a United States Person within the
     meaning of the Code.

                         (f) No transfer, pledge or encumbrance of the Class R
     Certificate shall be made to any Person unless (A) such Person is a Rated
     Entity, a Bankruptcy Remote Entity or a statutory trust established under
     Chapter 38 of Title 12 of the Delaware Code, 12 Del. C. ss. 3801 et seq.
     that is a Bankruptcy Remote Entity, or (B) such pledge is made to CIGPF I
     Corp. ("CIGPF") pursuant to the Master Loan Agreement; provided, however,
     that in the event CIGPF forecloses on its security interest in the Class R
     Certificate, the Class R Certificate may be registered in the name of a
     Person that is not a Bankruptcy Remote Entity for a period not to exceed
     two (2) Business Days. The Certificate shall at all times be registered in
     the name of a single holder.

                         (g) The Certificate shall bear a legend stating that it
     has not been registered under the Securities Act and are subject to the
     restrictions on transfer described herein. By purchasing a Certificate,
     each purchaser shall be deemed to have agreed to these restrictions on
     transfer.

                         (h) In order to preserve the exemption for resales and
     transfers provided by Rule 144A, the Transferor shall provide to any Holder
     of a Non-Registered Certificate and any prospective purchaser designated by
     such Holder, upon request of such Holder or such

                                       15
<PAGE>

     prospective purchaser, such information required by Rule 144A as will
     enable the resale of such Non-Registered Certificate to be made pursuant to
     Rule 144A. The Owner Trustee shall cooperate with the Transferor in
     providing the Transferor such information regarding the Non-Registered
     Certificate, the Trust Assets and other matters regarding the Trust as the
     Transferor shall reasonably request to meet its obligations under the
     preceding sentence.

                         (i) Notwithstanding any provision of this Agreement to
     the contrary, any transfer of Certificates that causes the total number of
     beneficial owners of Certificates to exceed ninety-nine (99) shall be null
     and void and the Certificate Register shall be amended to reflect such
     voided transfer.

                    SECTION 3.8. Disposition In Whole But Not In Part. The Class
R Certificate may be transferred in whole but not in part. Any attempted
transfer of the Certificate that would divide the beneficial ownership in the
Trust shall be void.

                                   ARTICLE IV.

                         Voting Rights and Other Actions

                    SECTION 4.1. Prior Notice to Certificateholder with Respect
to Certain Matters. With respect to the following matters, the Owner Trustee
shall not take action unless at least thirty (30) days before the taking of such
action, the Owner Trustee shall have notified the Certificateholder and the Note
Insurer in writing of the proposed action and the Certificateholder shall not
have notified the Owner Trustee in writing prior to the 30th day after such
notice is given that the Certificateholder has withheld consent or provided
alternative direction:

                         (a) the election by the Trust to file an amendment to
     the Certificate of Trust (unless such amendment is required to be filed
     under the Statutory Trust Act or unless such amendment would not materially
     and adversely affect the interests of the Certificateholder);

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

                         (c) 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 Certificateholder; or

                         (d) except pursuant to Section 13.1 of the Sale and
     Servicing Agreement, the amendment, change or modification of the Sale and
     Servicing Agreement, except to cure any ambiguity or defect or to amend or
     supplement any provision in a manner that would not materially adversely
     affect the interests of the Certificateholder.

                    The Owner Trustee shall notify the Certificateholder in
writing of any appointment of a successor Note Registrar or Trust Collateral
Agent within five Business Days after receipt of notice thereof.

                    SECTION 4.2. Action by Certificateholder with Respect to
Certain Matters. The Owner Trustee shall not have the power, except upon the
direction of the Controlling Party

                                       16
<PAGE>

or, after the Class A Notes and Reimbursement Obligations have been paid and
full and the expiration of the Policy in accordance with its terms, the
Certificateholder in accordance with the Basic Documents, to (a) remove the
Servicer under the Sale and Servicing Agreement pursuant to Section 9.1 thereof
or (b) except as expressly provided in the Basic Documents, sell the Receivables
after the termination of the Indenture. The Owner Trustee shall take the actions
referred to in the preceding sentence only upon written instructions signed by
the Controlling Party or the Certificateholder, as applicable and the furnishing
of indemnification satisfactory to the Owner Trustee by the Certificateholder.
To the fullest extent permitted by applicable law, the Owner Trustee shall not
have the power to, and shall not, commence any proceeding or other actions
contemplated by Section 2.10 (b).

                    SECTION 4.3. Restrictions on Certificateholder's Power.

                         (a) The Certificateholder shall not direct the Owner
     Trustee to take or refrain from taking any action if such action or
     inaction would be contrary to any obligation of the Trust or the Owner
     Trustee under this Agreement or any of the Basic Documents or would be
     contrary to Section 2.3 nor shall the Owner Trustee be obligated to follow
     any such direction, if given.

                         (b) The Certificateholder shall not have any right by
     virtue or by availing itself of any provisions of this Agreement to
     institute any suit, action, or proceeding in equity or at law upon or under
     or with respect to this Agreement or any Basic Document, unless the
     Certificateholder is the Instructing Party pursuant to Section 5.3 and
     unless the Certificateholder previously shall have given to the Owner
     Trustee a written notice of default and of the continuance thereof, as
     provided in this Agreement, and also unless the Certificateholder shall
     have made written request upon the Owner Trustee to institute such action,
     suit or proceeding in its own name as Owner Trustee under this Agreement
     and shall have offered to the Owner Trustee such reasonable indemnity as it
     may require against the costs, expenses and liabilities to be incurred
     therein or thereby, and the Owner Trustee, for thirty (30) days after its
     receipt of such notice, request, and offer of indemnity, shall have
     neglected or refused to institute any such action, suit, or proceeding, and
     during such 30-day period no request or waiver inconsistent with such
     written request has been given to the Owner Trustee pursuant to and in
     compliance with this Section or Section 5.3. For the protection and
     enforcement of the provisions of this Section, the Certificateholder and
     the Owner Trustee shall be entitled to such relief as can be given either
     at law or in equity.

                    SECTION 4.4. Rights of Note Insurer. Notwithstanding
anything to the contrary in the Basic Documents, without the prior written
consent of the Note Insurer (so long as no Note Insurer Default shall have
occurred and be continuing), the Owner Trustee shall not (i) remove the
Servicer, (ii) initiate any claim, suit or proceeding by the Trust or compromise
any claim, suit or proceeding brought by or against the Trust, other than with
respect to the enforcement of any Receivable or any rights of the Trust
thereunder, (iii) authorize the merger or consolidation of the Trust with or
into any other statutory trust or other entity (other than in accordance with
Section 3.10 of the Indenture) or (iv) amend the Certificate of Trust (except as
may be required by the Statutory Trust Act).

                                       17
<PAGE>

                                   ARTICLE V.

                      Authority and Duties of Owner Trustee

                    SECTION 5.1. General Authority.

                         (a) The Owner Trustee is authorized and directed to
     execute and deliver the Basic Documents to which the Trust is named as a
     party and each certificate or other document attached as an exhibit to or
     contemplated by the Basic Documents to which the Trust is named as a party
     and any amendment thereto, in each case, in such form as the Transferor
     shall approve as evidenced conclusively by the Owner Trustee's execution
     thereof, and on behalf of the Trust, to direct the Indenture Trustee to
     authenticate and deliver the Class A-1 Notes in the aggregate principal
     amount of $42,000,000, the Class A-2 Notes in the aggregate principal
     amount of $100,000,000, the Class A-3 Notes in the aggregate principal
     amount of $58,000,000 and the Class A-4 Notes in the aggregate principal
     amount of $50,000,000. In addition to the foregoing, the Owner Trustee is
     authorized, but shall not be obligated, to take all actions required of the
     Trust pursuant to the Basic Documents. The Owner Trustee is further
     authorized from time to time to take such action as the Instructing Party
     recommends with respect to the Basic Documents so long as such activities
     are consistent with the terms of the Basic Documents.

                         (b) The Owner Trustee shall sign on behalf of the Trust
     any applicable tax returns of the Trust, unless applicable law requires a
     Certificateholder to sign such documents.

                    SECTION 5.2. General Duties(a) . It shall be the duty of the
Owner Trustee:

               (i) to discharge (or cause to be discharged) all of its
          responsibilities pursuant to the terms of this Agreement and to
          administer the Trust in the interest of the Certificateholder, subject
          to the Basic Documents and in accordance with the provisions of this
          Agreement; and

               (ii) to execute on behalf of the Trust any license, approval,
          authorization or registration required by any governmental authority,
          bureau or agency, as notified by the Servicer and presented to the
          Owner Trustee in final execution form, with respect to which the
          failure to maintain any such license, approval, authorization or
          registration would have an adverse effect on the validity and
          enforceability of the Indenture, the Certificate, the Notes or the
          Owner Trust Estate.

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

                                       18
<PAGE>

                    SECTION 5.3. Action upon Instruction.

                         (a) Subject to Article IV and the terms of the Spread
     Account Agreement, the Note Insurer (so long as a Note Insurer Default
     shall not have occurred and be continuing) or the Class R
     Certificateholder) (if a Note Insurer Default shall have occurred and be
     continuing) (the "Instructing Party") shall have the exclusive right to
     direct the actions of the Owner Trustee in the management of the Trust, so
     long as such instructions are not inconsistent with the express terms set
     forth herein or in any Basic Document. The Instructing Party shall not
     instruct the Owner Trustee in a manner inconsistent with this Agreement or
     the Basic Documents.

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

                         (c) Whenever the Owner Trustee is unable to decide
     between alternative courses of action permitted or required by the terms of
     this Agreement or any Basic Document, 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 or
     the Basic Documents, as it shall deem to be in the best interests of the
     Certificateholder, 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 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 10
     days of such notice (or within such shorter period of time as reasonably
     may be specified in such notice or may be necessary under the
     circumstances) it may, but shall be under no duty to, take or refrain from
     taking such action, not inconsistent with this Agreement or the Basic
     Documents, as it shall deem to be in the best interests of the
     Certificateholder, and shall have no liability to any Person for such
     action or inaction.

                                       19
<PAGE>

                    SECTION 5.4. No Duties Except as Specified in this Agreement
or in Instructions. The Owner Trustee shall not have any duty or obligation to
manage, make any payment with respect to, register, record, sell, dispose of, or
otherwise deal with the Owner 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 5.3; and no implied duties or obligations
shall be read into this Agreement or any 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 Basic Document. WTC nevertheless agrees that it
will, at its own cost and expense, promptly take all action as may be necessary
to discharge any Liens on any part of the Owner Trust Estate that result from
actions by, or claims against, WTC and that are not related to the ownership or
the administration of the Owner Trust Estate.

                    SECTION 5.5. No Action Except under Specified Documents or
Instructions. The Owner Trustee shall not manage, control, use, sell, dispose of
or otherwise deal with any part of the Owner Trust Estate except (i) in
accordance with the powers granted to and the authority conferred upon the Owner
Trustee pursuant to this Agreement, (ii) in accordance with the Basic Documents
and (iii) in accordance with any document or instruction delivered to the Owner
Trustee pursuant to Section 5.3.

                    SECTION 5.6. Restrictions. The Owner Trustee shall not take
any action (a) that is inconsistent with the purposes of the Trust set forth in
Section 2.3 or (b) that, to the actual knowledge of the Owner Trustee, would
result in the Trust's becoming taxable as a corporation for Federal income tax
purposes. The Instructing Party shall not direct the Owner Trustee to take
action that would violate the provisions of this Section.

                                  ARTICLE VI.

                          Concerning the Owner Trustee

                    SECTION 6.1. 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 moneys actually received by it
constituting part of the Owner Trust Estate upon the terms of the Basic
Documents and this Agreement. The Owner Trustee shall not be answerable or
accountable hereunder or under any Basic Document under any circumstances,
except (i) for its own willful misconduct, bad faith or negligence, (ii) in the
case of the inaccuracy of any representation or warranty contained in Section
6.3 expressly made by the Owner Trustee, (iii) for liabilities arising from the
failure of WTC to perform obligations expressly undertaken by it in the last
sentence of Section 5.4 hereof, (iv) for any investments issued by the Owner
Trustee or any branch or Affiliate thereof in its commercial capacity or (v) for
taxes, fees or other charges on, based on or measured by, any fees, commissions
or compensation received by the Owner Trustee. In particular, but not by way of
limitation (and subject to the exceptions set forth in the preceding sentence):

                                       20
<PAGE>

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

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

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

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

                         (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 Transferor or for the form, character, genuineness,
     sufficiency, value or validity of any of the Owner Trust Estate or for or
     in respect of the validity or sufficiency of the Basic Documents, other
     than the certificate of authentication on a Certificate, and the Owner
     Trustee shall in no event assume or incur any liability, duty or obligation
     to the Note Insurer, Indenture Trustee, Trust Collateral Agent, the
     Collateral Agent, any Noteholder or to the Certificateholder, other than as
     expressly provided for herein and in the Basic Documents;

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

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

                         (h) with respect to the Note Insurer or Instructing
     Party, the Owner Trustee undertakes to perform or observe only such of the
     covenants and obligations of the Owner Trustee as are expressly set forth
     in this Agreement, and no implied covenants or obligations

                                       21
<PAGE>

     with respect to the Note Insurer or Instructing Party shall be read into
     this Agreement or the other Basic Documents against the Owner Trustee. The
     Owner Trustee shall not be deemed to owe any fiduciary duty to the Note
     Insurer or Instructing Party, and shall not be liable to any such person
     for the failure of the Trust to perform its obligations to such persons
     other than in accordance with Section 10.12 of this Agreement in the
     performance of its express obligations under this Agreement; and

                         (i) notwithstanding anything to the contrary herein or
     in any other document, the Owner Trustee shall not be required to execute,
     deliver or certify on behalf of the Trust, the Servicer, the Transferor or
     any other Person any filings, certificates, affidavits or other instruments
     required by the SEC or required under the Sarbanes-Oxley Act of 2002.
     Notwithstanding any Person's right to instruct the Owner Trustee, neither
     the Owner Trustee nor any agent, employee, director or officer of the Owner
     Trustee shall have any obligation to execute any certificates or other
     documents required by the SEC or required pursuant to the Sarbanes-Oxley
     Act of 2002 or the rules and regulations promulgated thereunder, and the
     refusal to comply with any such instructions shall not constitute a default
     or breach under this Agreement or any other document in connection
     herewith.

                    SECTION 6.2. Furnishing of Documents. The Owner Trustee
shall furnish to the Certificateholder promptly upon receipt of a written
request therefor, duplicates or copies of all reports, notices, requests,
demands, certificates, financial statements and any other instruments furnished
to the Owner Trustee under the Basic Documents.

                    SECTION 6.3. Representations and Warranties. The Owner
Trustee and WTC hereby represent and warrant to the Transferor, the
Certificateholder and the Note Insurer (which shall have relied on such
representations and warranties in issuing the Policy), that:

                         (a) It is a Delaware banking corporation, duly
     organized and validly existing in good standing under the laws of the State
     of Delaware and it holds all grants, authorizations, consents, orders and
     approvals from all governmental authorities necessary under the laws of the
     State of Delaware to carry on its true business as now conducted. 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 Delaware state or federal 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 by-laws or any indenture, mortgage, contract,
     agreement or instrument to which it is a party or by which any of its
     properties may be bound, or result in the creation or imposition of any
     lien, charge or encumbrance on the Trust Assets resulting

                                       22
<PAGE>

     from actions by or claims against the Owner Trustee in its individual
     capacity except as expressly contemplated by this Agreement or Indenture.

                         (d) No consent, approval, authorization or order of, or
     filing with, any court or regulatory, supervisory or government agency or
     body is required by the Owner Trustee under Delaware law in connection with
     the execution, delivery and performance by the Owner Trustee of this
     Agreement or the consummation by the Owner Trustee of the transactions
     contemplated hereby (except for the filing of the Certificate of Trust with
     the Secretary of State).

                         (e) The Owner Trustee has no present intent to cause a
     voluntary bankruptcy of the Trust.

                    SECTION 6.4. Reliance; Advice of Counsel.

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

                         (b) In the exercise or administration of the trusts
     hereunder and in the performance of its duties and obligations under this
     Agreement or the Basic Documents, the Owner Trustee (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 according to such opinion not
     contrary to this Agreement or any Basic Document.

                    SECTION 6.5. Not Acting in Individual Capacity. Except as
provided in Article II and this Article VI, in accepting the trusts hereby
created WTC acts solely as Owner Trustee hereunder and not in its individual
capacity and all Persons having any claim against the Owner Trustee by reason of
the transactions contemplated by this Agreement or any Basic Document shall look
only to the Owner Trust Estate for payment or satisfaction thereof.

                    SECTION 6.6. Owner Trustee Not Liable for Certificate or
Receivables. The recitals contained herein and in the Certificate (other than
the signature and countersignature of

                                       23
<PAGE>

the Owner Trustee on the Certificate) shall be taken as the statements of the
Transferor and the Owner Trustee assumes no responsibility for the correctness
thereof. The Owner Trustee makes no representations as to the validity or
sufficiency of this Agreement, of any Basic Document or of the Certificate
(other than the signature and countersignature of the Owner Trustee on the
Certificate) or the Notes, or of any Receivable or related documents. The Owner
Trustee shall at no time have any responsibility or liability for or with
respect to the legality, validity and enforceability of any Receivable, or the
perfection and priority of any security interest created by any Receivable in
any Financed Vehicle or the maintenance of any such perfection and priority, or
for or with respect to the sufficiency of the Owner Trust Estate or its ability
to generate the payments to be distributed to the Certificateholder under this
Agreement or the Noteholders under the Indenture, including: the existence,
condition and ownership of any Financed Vehicle; the existence and
enforceability of any insurance thereon; the existence and contents of any
Receivable on any computer or other record thereof; the validity of the
assignment of any Receivable to the Trust or of any intervening assignment; the
completeness of any Receivable; the performance or enforcement of any
Receivable; the compliance by the Transferor, the Servicer or any other Person
with any warranty or representation made under any Basic Document or in any
related document or the accuracy of any such warranty or representation or any
action of the Indenture Trustee or the Servicer or any subservicer taken in the
name of the Owner Trustee.

                    SECTION 6.7. Owner Trustee May Own Notes. The Owner Trustee
in its individual capacity may become the owner or pledgee of the Notes and may
deal with the Certificateholder, the Transferor, the Indenture Trustee and the
Servicer in banking transactions with the same rights as it would have if it
were not Owner Trustee.

                    SECTION 6.8. Payments from Owner Trust Estate. All payments
to be made by the Owner Trustee under this Agreement or any of the Basic
Documents to which the Trust or the Owner Trustee is a party shall be made only
from the income and proceeds of the Owner Trust Estate and only to the extent
that the Owner Trust shall have received income or proceeds from the Owner Trust
Estate to make such payments in accordance with the terms hereof. WTC, or any
successor thereto, in its individual capacity, shall not be liable for any
amounts payable under this Agreement or any of the Basic Documents to which the
Trust or the Owner Trustee is a party.

                    SECTION 6.9. Doing Business in Other Jurisdictions.
Notwithstanding anything contained to the contrary, neither WTC or any successor
thereto, nor the Owner Trustee shall be required to take any action in any
jurisdiction other than in the State of Delaware if the taking of such action
will, even after the appointment of a co-trustee or separate trustee in
accordance with Section 9.5 hereof, (i) require the consent or approval or
authorization or order of or the giving of notice to, or the registration with
or the taking of any other action in respect of, any state or other governmental
authority or agency of any jurisdiction other than the State of Delaware; (ii)
result in any fee, tax or other governmental charge under the laws of the State
of Delaware becoming payable by WTC (or any successor thereto); or (iii) subject
WTC (or any successor thereto) to personal jurisdiction in any jurisdiction
other than the State of Delaware for causes of action arising from acts
unrelated to the consummation of the transactions by WTC (or any successor
thereto) or the Owner Trustee, as the case may be, contemplated hereby.

                                       24
<PAGE>

                                  ARTICLE VII.

                          Compensation of Owner Trustee

                    SECTION 7.1. Owner Trustee's Fees and Expenses. The Owner
Trustee shall receive as compensation for its services hereunder such fees as
have been separately agreed upon before the date hereof between LBAC and the
Owner Trustee, and the Owner Trustee shall be entitled to be reimbursed by LBAC
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 and under the
Basic Documents.

                    SECTION 7.2. Indemnification. Each of the Owner Trustee and
WTC and its officers, directors, successors, assigns, agents and servants shall
be indemnified by the Servicer in and to the extent set forth in Section
8.2(a)(v) of the Sale and Servicing Agreement.

                    SECTION 7.3. Payments to the Owner Trustee. Any amounts paid
to the Owner Trustee pursuant to this Article VII shall be deemed not to be a
part of the Owner Trust Estate immediately after such payment.

                    SECTION 7.4. Non-recourse Obligations. Notwithstanding
anything in this Agreement or any Basic Document, the Owner Trustee agrees in
its individual capacity and in its capacity as Owner Trustee for the Trust that
all obligations of the Trust to the Owner Trustee individually or as Owner
Trustee for the Trust shall be recourse to the Owner Trust Estate only and
specifically shall not be recourse to the assets of the Certificateholder.

                                 ARTICLE VIII.

                         Termination of Trust Agreement

                  SECTION 8.1. Termination of Trust Agreement.

                         (a) This Agreement shall terminate and the Trust shall
     wind up and dissolve and be of no further force or effect upon the latest
     of (i) the maturity or other liquidation of the last Receivable and the
     subsequent distribution of amounts in respect of such Receivables as
     provided in the Basic Documents, (ii) the payment to the Certificateholder
     of all amounts required to be paid to it pursuant to this Agreement and the
     Sale and Servicing Agreement and the payment to the Note Insurer of all
     amounts payable or reimbursable to it pursuant to the Sale and Servicing
     Agreement, (iii) the expiration of the Policy in accordance with its terms;
     or (iv) payment to the Note Insurer in full of all Reimbursement
     Obligations; provided, however, that the rights to indemnification under
     Section 7.2 and the rights under Section 7.1 shall survive the termination
     of the Trust. The Servicer shall promptly notify the Owner Trustee and the
     Note Insurer of any prospective termination pursuant to this Section. The
     bankruptcy, liquidation, dissolution, death or incapacity of the
     Certificateholder, shall not (x) operate to terminate this Agreement or the
     Trust, nor (y) entitle the Certificateholder's legal representatives or
     heirs to claim an accounting or to take any action or proceeding in any
     court

                                       25
<PAGE>

     for a partition or winding up of all or any part of the Trust or Owner
     Trust Estate nor (z) otherwise affect the rights, obligations and
     liabilities of the parties hereto.

                         (b) Neither the Transferor nor the Certificateholder
     shall be entitled to revoke or terminate the Trust.

                         (c) Notice of any termination of the Trust, specifying
     the Payment Date upon which the Certificateholder shall surrender the
     Certificate to the Trust Collateral Agent for payment of the final
     distribution and cancellation, shall be given by the Owner Trustee by
     letter to the Certificateholder mailed within five Business Days of receipt
     of notice of such termination from the Servicer given pursuant to Section
     10.1(c) of the Sale and Servicing Agreement, stating (i) the Payment Date
     upon or with respect to which final payment of the Certificate shall be
     made upon presentation and surrender of the Certificate at the office of
     the Trust Collateral Agent therein designated, (ii) the amount of any such
     final payment, (iii) that the Record Date otherwise applicable to such
     Payment Date is not applicable, payments being made only upon presentation
     and surrender of the Certificate at the office of the Trust Collateral
     Agent therein specified and (iv) interest will cease to accrue on the
     Certificate. The Owner Trustee shall give such notice to the Trust
     Collateral Agent at the time such notice is given to the Certificateholder.
     Upon presentation and surrender of the Certificate, the Trust Collateral
     Agent shall cause to be distributed to the Certificateholder amounts
     distributable on such Payment Date pursuant to Section 5.6 of the Sale and
     Servicing Agreement.

                    In the event that the Certificateholder shall not surrender
its Certificate for cancellation within six months after the date specified in
the above mentioned written notice, the Trust Collateral Agent shall give a
second written notice to the Certificateholder to surrender its Certificate for
cancellation and receive the final distribution with respect thereto. If within
one year after the second notice the Certificate shall not have been surrendered
for cancellation, the Trust Collateral Agent may take appropriate steps, or may
appoint an agent to take appropriate steps, to contact the Certificateholder
concerning surrender of the Certificate, 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 shall be
distributed, subject to applicable escheat laws, by the Trust Collateral Agent
to the Transferor.

                         (d) Upon the winding up of the Trust and its
     dissolution, the Owner Trustee shall cause the Certificate of Trust to be
     canceled by filing a certificate of cancellation with the Secretary of
     State in accordance with the provisions of Section 3810 of the Statutory
     Trust Act.

                                  ARTICLE IX.

             Successor Owner Trustees and Additional Owner Trustees

                    SECTION 9.1. Eligibility Requirements for Owner Trustee. The
Owner Trustee shall at all times be a corporation or national banking
association (i) satisfying the provisions of Section 3807(a) of the Statutory
Trust Act; (ii) authorized to exercise corporate trust powers; (iii) having a
combined capital and surplus of at least $50,000,000 and subject to supervision
or examination by Federal or State authorities; and (iv) acceptable to the Note

                                       26
<PAGE>

Insurer in its sole discretion, so long as a Note Insurer Default shall not have
occurred and be continuing. If such entity 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 entity 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 9.2.

                    SECTION 9.2. Resignation or Removal of Owner Trustee. The
Owner Trustee may at any time resign and be discharged from the trusts hereby
created by giving sixty days' written notice thereof to the Transferor, the
Certificateholder, the Note Insurer and the Servicer. Upon receiving such notice
of resignation, the Class R Certificateholder shall, with the prior written
consent of the Note Insurer, 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 Class R Certificateholder shall have received written
confirmation from each of the Rating Agencies that the proposed appointment will
not result in an increased capital charge to the Note Insurer by either of the
Rating Agencies. If no successor Owner Trustee shall have been so appointed and
have accepted appointment within thirty (30) days after the giving of such
notice of resignation, the resigning Owner Trustee or the Note 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 9.1 and shall fail to resign after
written request therefor by the Class R Certificateholder, 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 Class R Certificateholder with the consent
of the Note Insurer (so long as a Note Insurer Default shall not have occurred
and be continuing) may remove the Owner Trustee. If the Class R
Certificateholder shall remove the Owner Trustee under the authority of the
immediately preceding sentence, the Class R Certificateholder shall, with the
prior written consent of the Note Insurer, 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, one copy to the Note
Insurer and one copy to the successor Owner Trustee and payment of all fees owed
to the outgoing Owner Trustee.

                    Any resignation or removal of the Owner Trustee and
appointment of a successor Owner Trustee pursuant to any of the provisions of
this Section shall not become effective until acceptance of appointment by the
successor Owner Trustee pursuant to Section 9.3 and payment of all fees and
expenses owed to the outgoing Owner Trustee. The Class R Certificateholder shall
provide notice of such resignation or removal of the Owner Trustee to each of
the Rating Agencies.

                    SECTION 9.3. Successor Owner Trustee. Any successor Owner
Trustee appointed pursuant to Section 9.2 shall execute, acknowledge and deliver
to the Transferor, the

                                       27
<PAGE>

Certificateholder, the Servicer, the Note 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
Transferor, the Certificateholder 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 9.1.

                    Upon acceptance of appointment by a successor Owner Trustee
pursuant to this Section, (i) the Servicer shall mail notice of the successor of
such Owner Trustee to the Certificateholder, the Indenture Trustee, the
Noteholders and the Rating Agencies and (ii) the successor Owner Trustee shall
file an amendment to the Certificate of Trust with the secretary of State
identifying its name and principal place of business in the State of Delaware.
If the Servicer shall fail to mail such notice within ten (10) days after
acceptance of appointment by the successor Owner Trustee, the successor Owner
Trustee shall cause such notice to be mailed at the expense of the Servicer.

                    SECTION 9.4. Merger or Consolidation of Owner Trustee. Any
corporation into which the Owner Trustee may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Owner Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Owner Trustee, shall be the successor of the Owner Trustee
hereunder, provided such corporation shall be eligible pursuant to Section 9.1,
without the execution or filing of any instrument or any further act on the part
of any of the parties hereto, anything herein to the contrary notwithstanding;
provided further that the Owner Trustee (i) shall mail notice of such merger or
consolidation to the Rating Agencies and (ii) shall file an amendment to the
Certificate of Trust as required under Section 9.3, above.

                    SECTION 9.5. Appointment of Co-Indenture Trustee or Separate
Indenture 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 Owner Trust Estate or any Financed Vehicle may at the
time be located, the Servicer and the Owner Trustee acting jointly shall have
the power and shall execute and deliver all instruments to appoint one or more
Persons approved by the Owner Trustee and the Note Insurer to act as co-trustee,
jointly with the Owner Trustee, or separate trustee or separate trustees, of all
or any part of the Owner Trust Estate, and to vest in such Person, in such
capacity, such title to the Trust, or any part thereof, and, subject to the
other provisions of this Section, such powers, duties, obligations, rights and
trusts as the Servicer and the Owner Trustee may consider necessary or
desirable. If the Servicer shall not have joined in such appointment within 15
days after the receipt by it of a request so to

                                       28
<PAGE>

do, the Owner Trustee subject, unless a Note Insurer Default shall have occurred
and be continuing, to the approval of the Note Insurer (which approval shall not
be unreasonably withheld) shall have the power to make such appointment. No
co-trustee or separate trustee under this Agreement shall be required to meet
the terms of eligibility as a successor trustee pursuant to Section 9.1 and no
notice of the appointment of any co-trustee or separate trustee shall be
required pursuant to Section 9.3.

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

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

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

               (iii) the Servicer 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 Servicer and the Note Insurer.

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

                                       29
<PAGE>

                                   ARTICLE X.

                                  Miscellaneous

                    SECTION 10.1. Supplements and Amendments.

                         (a) This Agreement may be amended by the Transferor and
     the Owner Trustee, with the prior written consent of the Note Insurer (so
     long as a Note Insurer Default shall not have occurred and be continuing)
     and with prior written notice to the Demand Note Provider, the Demand Note
     Guarantor and the Rating Agencies, without the consent of any of the
     Noteholders or the Certificateholder (so long as the Certificate is
     outstanding), (i) to cure any ambiguity or defect or (ii) to correct,
     supplement or modify any provisions in this Agreement; provided, however,
     that such action shall not, as evidenced by an Opinion of Counsel which may
     be based upon a certificate of the Servicer, delivered to the Owner
     Trustee, the Rating Agencies and the Note Insurer, adversely affect in any
     material respect the interests of any Noteholder, the Demand Note Provider,
     the Demand Note Guarantor or the Certificateholder.

                         (b) This Agreement may also be amended from time to
     time, with the prior written consent of the Note Insurer (so long as a Note
     Insurer Default shall not have occurred and be continuing) by the
     Transferor and the Owner Trustee, with prior written notice to the Demand
     Note Provider, the Demand Note Guarantor and the Rating Agencies, to the
     extent such amendment materially and adversely affects the interest of the
     Demand Note Provider or the Demand Note Guarantor, with the prior written
     consent of such Person, to the extent such amendment materially and
     adversely affects the interests of the Class A Noteholders, with the
     consent of the Class A Noteholders evidencing not less than 50% of the
     outstanding Class A Note Balance and, the consent of the Class R
     Certificateholder (which consent of the Class R Certificateholder given
     pursuant to this Section or pursuant to any other provision of this
     Agreement shall be conclusive and binding on such Class R Certificateholder
     and any future Class R Certificateholder) 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 Certificateholder; provided, however, that, subject
     to the express rights of the Note Insurer under the Basic Documents, no
     such amendment shall (a) increase or reduce in any manner the amount of, or
     accelerate or delay the timing of, collections of payments on Receivables
     or distributions that shall be required to be made for the benefit of the
     Noteholders or the Certificateholder or (b) reduce the aforesaid percentage
     of the Class A Note Balance or the Certificateholder required to consent to
     any such amendment, without the consent of the Noteholders of all the
     outstanding Class A Notes or the Class R Certificateholder, as the case may
     be.

                    Promptly after the execution of any such amendment or
consent, the Owner Trustee shall furnish written notification of the substance
of such amendment or consent to the Certificateholder, the Indenture Trustee,
the Demand Note Provider, the Demand Note Guarantor and each of the Rating
Agencies.

                    It shall not be necessary for the consent of
Certificateholder, the 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

                                       30
<PAGE>

thereof. The manner of obtaining such consents (and any other consents of the
Certificateholder provided for in this Agreement or in any other Basic Document)
and of evidencing the authorization of the execution thereof by the
Certificateholder shall be subject to such reasonable requirements as the Owner
Trustee may prescribe. 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.

                    Prior to the execution of any amendment to this Agreement or
the Certificate of Trust, the Owner Trustee and the Note Insurer shall be
entitled to receive and rely upon an Opinion of Counsel stating that the
execution of such amendment is authorized or permitted by this Agreement and
that all conditions precedent to the execution and delivery of such amendment
have been satisfied. The Owner Trustee may, but shall not be obligated to, enter
into any such amendment which affects the Owner Trustee's own rights, duties or
immunities under this Agreement or otherwise.

                    SECTION 10.2. No Legal Title to Owner Trust Estate in
Certificateholder. The Certificateholder shall not have legal title to any part
of the Owner Trust Estate. The Certificateholder shall be entitled to receive
distributions in accordance with this Agreement and the Sale and Servicing
Agreement. No transfer, by operation of law or otherwise, of any right, title or
interest of the Certificateholder to and in its ownership interest in the Owner
Trust Estate shall operate to terminate this Agreement or the trusts hereunder
or entitle any transferee to an accounting or to the transfer to it of legal
title to any part of the Owner Trust Estate.

                    SECTION 10.3. Limitations on Rights of Others. The
provisions of this Agreement are solely for the benefit of the Owner Trustee,
the Transferor, the Certificateholder, the Servicer and, to the extent expressly
provided herein, the Note Insurer, the Indenture Trustee, the Noteholders, the
Demand Note Provider and the Demand Note Guarantor, and nothing in this
Agreement, whether express or implied, shall be construed to give to any other
Person any legal or equitable right, remedy or claim in the Owner Trust Estate
or under or in respect of this Agreement or any covenants, conditions or
provisions contained herein.

                    SECTION 10.4. Notices.

                         (a) Unless otherwise expressly specified or permitted
     by the terms hereof, all notices shall be in writing and shall be deemed
     given upon receipt personally delivered, sent by facsimile transmission
     (with appropriate confirmation) delivered by overnight courier or mailed
     first class mail or certified mail, in each case return receipt requested,
     and shall be deemed to have been duly given upon receipt:

               (i) if to the Owner Trustee, addressed to:

                   Wilmington Trust Company
                   Rodney Square North
                   1100 North Market Street
                   Wilmington, Delaware 19890-0001
                   Attention:  Corporate Trust Administration
                   (Telecopy Number:  (302) 651-8882)

                                       31
<PAGE>

               (ii) if to the Transferor, addressed to:

                    Long Beach Acceptance Receivables Corp.
                    One Mack Centre Drive
                    Paramus, New Jersey 07652
                    Attention:  General Counsel
                    (Telecopy Number:  (201) 262-6868)

               (iii) if to the Note Insurer, addressed to

                    Financial Security Assurance Inc.
                    350 Park Avenue, New York, NY 10022
                    Attention:  Transaction Oversight
                    Re: Long Beach Acceptance Auto Receivables Trust 2004-B
                    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 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 notice or other
                    communication should also be sent to the attention of the
                    General Counsel and the Head-Financial Guaranty Group
                    "URGENT MATERIAL ENCLOSED").

               (iv) if to the Demand Note Provider, addressed to:

                    CIGPF I Corp.
                    390 Greenwich Street, 4th Floor
                    New York, New York 10013
                    Attention: Chief Financial Officer - Principal Finance and
                               Ari Rosenberg
                    Telecopy No.: (212) 723-8855

               (v)  if to the Demand Note Guarantor, addressed to:

                    Citigroup Global Markets Holdings Inc.
                    390 Greenwich Street, 6th Floor
                    New York, New York 10013
                    Attention: Chief Financial Officer - Principal Finance and
                               Ari Rosenberg
                    Telecopy No.: (212) 723-8855

                                       32
<PAGE>

               (vi) in the case of the Rating Agencies, addressed to:

                    Moody's Investors Service, Inc.
                    99 Church Street
                    New York, New York 10007
                    Attention:  ABS Monitoring Department

                    and

                    Standard & Poor's Ratings Services
                    55 Water Street, 40th Floor
                    New York, New York 10041
                    Attention:  Asset Backed Surveillance Department

                         (b) Any notice required or permitted to be given to a
     Class R Certificateholder shall be given by first-class mail, postage
     prepaid, at the address of the Class R Certificateholder in the register
     maintained by the Owner Trustee. Any notice so mailed within the time
     prescribed in this Agreement shall be conclusively presumed to have been
     duly given, whether or not the Class R Certificateholder receives such
     notice.

                    SECTION 10.5. Severability. Any provision of this Agreement
that is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

                    SECTION 10.6. Separate Counterparts. This Agreement may be
executed by the parties hereto in separate counterparts, each of which when so
executed and delivered shall be an original, but all such counterparts shall
together constitute but one and the same instrument.

                    SECTION 10.7. Assignments. This Agreement shall inure to the
benefit of and be binding upon the parties hereto and their respective
successors and permitted assigns.

                    SECTION 10.8. No Recourse. The Class R Certificateholder by
accepting a Class R Certificate acknowledges that such Class R Certificate
represents a beneficial interest in the Trust only and does not represent
interests in or obligations of the Transferor, the Servicer, the Owner Trustee,
the Indenture Trustee, the Note Insurer or any Affiliate thereof and no recourse
may be had against such parties or their assets, except as may be expressly set
forth or contemplated in this Agreement, the Class R Certificate or the Basic
Documents.

                    SECTION 10.9. 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 10.10. GOVERNING LAW. THIS AGREEMENT SHALL BE
CONSTRUED IN ACCORDANCE WITH, AND THIS AGREEMENT AND ALL MATTERS ARISING OUT OF
OR RELATING IN ANY WAY TO THIS AGREEMENT SHALL BE

                                       33
<PAGE>

GOVERNED BY, THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS.

                    SECTION 10.11. Servicer. The Servicer is authorized to
prepare, or cause to be prepared, execute and deliver on behalf of the Trust all
such documents, reports, filings, instruments, certificates and opinions as it
shall be the duty of the Trust or Owner Trustee to prepare, file or deliver
pursuant to the Basic Documents. Upon written request, the Owner Trustee shall
execute and deliver to the Servicer a limited power of attorney appointing the
Servicer the Trust's agent and attorney-in-fact to prepare, or cause to be
prepared, execute and deliver all such documents, reports, filings, instruments,
certificates and opinions.

                    SECTION 10.12. Limitation on Liability. With respect to the
Note Insurer, the Owner Trustee undertakes to perform or observe only such of
the covenants and obligations of the Owner Trustee as are expressly set forth in
this Agreement, and no implied covenants or obligations with respect to the Note
Insurer shall be read into this Agreement or the other Basic Documents against
the Owner Trustee. The Owner Trustee shall not be deemed to owe any fiduciary
duty to the Note Insurer, and shall not be liable to any such person for the
failure of the Trust to perform its obligations to such persons other than as a
result of the gross negligence or willful misconduct of the Owner Trustee in the
performance of its express obligations under this Agreement.

                    SECTION 10.13. No Petition. The Owner Trustee (not in its
individual capacity but solely as Owner Trustee), by entering into this
Agreement, the Certificateholder, by accepting its 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 Transferor, or join in any institution against the Transferor 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
Certificate, the Notes, this Agreement or any other Basic Documents.

                    SECTION 10.14. Bankruptcy Matters. To the fullest extent
permitted by law, no Certificateholder nor any party to this Agreement shall
take any action to cause the Trust to dissolve in whole or in part or file a
voluntary petition or otherwise initiate proceedings to have the Trust
adjudicated bankrupt or insolvent, or consent to the institution of bankruptcy
or insolvency proceedings against the Trust as debtor under any applicable
federal or state law relating to bankruptcy, insolvency or other relief for
debts with respect to the Trust; or seek or consent to the appointment of any
trustee, receiver, conservator, assignee, sequestrator, custodian, liquidator
(or other similar official) of the Trust or of all or any substantial part of
the properties and assets of the Trust, or cause the Trust to make any general
assignment for the benefit or creditors of the Trust or take any action in
furtherance of any of the above actions unless the Certificateholder and the
Indenture Trustee shall have provided their written consent.

                    SECTION 10.15. Effect of Policy Expiration Date.
Notwithstanding anything to the contrary set forth herein, all references to any
right of the Note Insurer to direct, appoint, consent to, accept, approve of,
take or omit to take any action under this Agreement or any other Basic Document
shall be inapplicable at all times after the Policy Expiration Date, and if such
reference provides for another party or parties to take or omit to take any such
action following a

                                       34
<PAGE>

Note Insurer Default, such party or parties shall also be entitled to take or
omit to take such action following the Policy Expiration Date and (ii) if such
reference does not provide for another party or parties to take or omit to take
any such action following a Note Insurer Default, then the Indenture Trustee
acting at the direction of the Majorityholders shall have the right to take or
omit to take any such action following the Policy Expiration Date. In addition,
any other provision of this Agreement or any other Basic Document which is
operative based in whole or in part on whether a Note Insurer Default has or has
not occurred shall, at all times on or after the Policy Expiration Date, be
deemed to refer to whether or not the Policy Expiration Date has occurred.

                    SECTION 10.16. Termination of Demand Note and/or Demand Note
Guarantee. All rights to notice, consent or waiver of the Demand Note Provider
or the Demand Note Guarantor, as applicable, under this Agreement shall cease to
be effective upon payment in full of all amounts due and owing to the Demand
Note Provider and the Demand Note Guarantor under the Sale and Servicing
Agreement and termination of the Demand Note or Demand Note Guarantee, as
applicable, in accordance with its terms.

                                       35
<PAGE>

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

                                              WILMINGTON TRUST COMPANY, as Owner
                                                 Trustee

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

                                              LONG BEACH ACCEPTANCE RECEIVABLES
                                                 CORP.

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

                                [Trust Agreement]

<PAGE>

                                                                       EXHIBIT A

                         [FORM OF CERTIFICATE OF TRUST]

                              CERTIFICATE OF TRUST
                                       OF
               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2004-B

          This Certificate of Trust of LONG BEACH ACCEPTANCE AUTO RECEIVABLES
TRUST 2004-B (the "Trust") is being duly executed and filed by the undersigned,
as trustee, to form a statutory trust under the Statutory Trust Act (12 Del.
C.ss.3801 et seq.) (the "Act").

          1. Name. The name of the statutory trust formed hereby is LONG BEACH
ACCEPTANCE AUTO RECEIVABLES TRUST 2004-B.

          2. Owner Trustee. The name and business address of the trustee of the
Trust in the State of Delaware is Wilmington Trust Company, Rodney Square North,
1100 North Market Street, Wilmington, Delaware 19890-0001, Attention: Corporate
Trust Administration.

          3. Effective Date. This Certificate of Trust will be effective upon
filing.

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

                                              WILMINGTON TRUST COMPANY, as Owner
                                                 Trustee

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

<PAGE>

                                                                       EXHIBIT B

                          [FORM OF CLASS R CERTIFICATE]

THIS CLASS R CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE APPLICABLE SECURITIES LAWS OF ANY
STATE. ACCORDINGLY, ANY TRANSFER OF THIS CLASS R CERTIFICATE IS SUBJECT TO
CERTAIN RESTRICTIONS SET FORTH IN SECTION 3.7 OF THE TRUST AGREEMENT. BY ITS
ACCEPTANCE OF THIS CLASS R CERTIFICATE THE HOLDER OF THIS CLASS R CERTIFICATE IS
DEEMED TO REPRESENT TO THE TRANSFEROR AND THE OWNER TRUSTEE (I) THAT IT IS AN
INSTITUTIONAL INVESTOR THAT IS AN "ACCREDITED INVESTOR" AS DEFINED IN RULE
501(A)(1), (2), (3) OR (7) OF REGULATION D PROMULGATED UNDER THE SECURITIES ACT
(AN "INSTITUTIONAL ACCREDITED INVESTOR") AND THAT IT IS ACQUIRING THIS CLASS R
CERTIFICATE FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A
FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE INSTITUTIONAL ACCREDITED
INVESTORS UNLESS THE HOLDER IS A BANK ACTING IN ITS FIDUCIARY CAPACITY) FOR
INVESTMENT AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, THE
PUBLIC DISTRIBUTION HEREOF OR (II) THAT IT IS A "QUALIFIED INSTITUTIONAL BUYER"
AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT AND IS ACQUIRING THIS CLASS R
CERTIFICATE FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A
FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QUALIFIED INSTITUTIONAL
BUYERS).

NO SALE, PLEDGE OR OTHER TRANSFER OF THIS CLASS R CERTIFICATE MAY BE MADE BY ANY
PERSON UNLESS EITHER (I) SUCH SALE, PLEDGE OR OTHER TRANSFER IS MADE TO THE
TRANSFEROR, (II) SUCH SALE, PLEDGE OR OTHER TRANSFER IS MADE TO AN INSTITUTIONAL
ACCREDITED INVESTOR THAT EXECUTES A CERTIFICATE, SUBSTANTIALLY IN THE FORM
SPECIFIED IN THE TRUST AGREEMENT, TO THE EFFECT THAT IT IS AN INSTITUTIONAL
ACCREDITED INVESTOR ACTING FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF
OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE
INSTITUTIONAL ACCREDITED INVESTORS UNLESS THE HOLDER IS A BANK ACTING IN ITS
FIDUCIARY CAPACITY), (III) SO LONG AS THIS CLASS R CERTIFICATE IS ELIGIBLE FOR
RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, SUCH SALE, PLEDGE OR
OTHER TRANSFER IS MADE TO A PERSON WHO THE TRANSFEROR REASONABLY BELIEVES AFTER
DUE INQUIRY IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A),
ACTING FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY
OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QUALIFIED INSTITUTIONAL BUYERS) TO
WHOM NOTICE IS GIVEN THAT THE SALE, PLEDGE OR TRANSFER IS BEING MADE IN RELIANCE
ON RULE 144A, OR (IV) SUCH SALE, PLEDGE OR OTHER TRANSFER IS OTHERWISE MADE IN A
TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, IN
WHICH CASE (A) THE OWNER TRUSTEE SHALL REQUIRE THAT BOTH THE PROSPECTIVE
TRANSFEROR AND THE PROSPECTIVE TRANSFEREE CERTIFY TO THE OWNER

<PAGE>

TRUSTEE AND THE TRANSFEROR IN WRITING THE FACTS SURROUNDING SUCH TRANSFER, WHICH
CERTIFICATION SHALL BE IN FORM AND SUBSTANCE SATISFACTORY TO THE OWNER TRUSTEE
AND THE TRANSFEROR, AND (B) THE OWNER TRUSTEE MAY REQUIRE A WRITTEN OPINION OF
COUNSEL (WHICH SHALL NOT BE AT THE EXPENSE OF THE TRUST, THE TRANSFEROR OR THE
OWNER TRUSTEE) SATISFACTORY TO THE TRANSFEROR AND THE OWNER TRUSTEE TO THE
EFFECT THAT SUCH TRANSFER WILL NOT VIOLATE THE SECURITIES ACT. NO SALE, PLEDGE
OR OTHER TRANSFER MAY BE MADE TO ANY ONE PERSON FOR CLASS R CERTIFICATE WITH A
FACE AMOUNT OF LESS THAN $100,000 AND, IN THE CASE OF ANY PERSON ACTING ON
BEHALF OF ONE OR MORE THIRD PARTIES (OTHER THAN A BANK (AS DEFINED IN SECTION
3(A)(2) OF THE SECURITIES ACT) ACTING IN ITS FIDUCIARY CAPACITY), FOR CLASS R
CERTIFICATE WITH A FACE AMOUNT OF LESS THAN $100,000 FOR EACH SUCH THIRD PARTY.

NO TRANSFER OF THIS CLASS R CERTIFICATE SHALL BE PERMITTED TO BE MADE TO ANY
PERSON UNLESS THE OWNER TRUSTEE HAS RECEIVED A CERTIFICATE FROM SUCH TRANSFEREE
TO THE EFFECT THAT SUCH TRANSFEREE IS NOT (A) AN EMPLOYEE BENEFIT PLAN (AS
DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
AS AMENDED ("ERISA")) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA OR
(B) A PLAN (AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE")) THAT IS SUBJECT TO SECTION 4975 OF THE CODE
(EACH, A "BENEFIT PLAN"), AND IS NOT ACTING ON BEHALF OF OR INVESTING THE ASSETS
OF A BENEFIT PLAN. EACH TRANSFEREE OF A BENEFICIAL OWNERSHIP INTEREST IN THIS
CLASS R CERTIFICATE SHALL BE DEEMED TO REPRESENT THAT IT IS NOT A BENEFIT PLAN
AND IS NOT ACTING ON BEHALF OF OR INVESTING THE ASSETS OF A BENEFIT PLAN.

NO TRANSFER OR SALE OF THIS CLASS R CERTIFICATE SHALL BE PERMITTED TO BE MADE IF
THE TRANSFER OR SALE INCREASES THE NUMBER OF CERTIFICATEHOLDERS TO MORE THAN
NINETY-NINE (99).

THE HOLDER OF THIS CLASS R CERTIFICATE REPRESENTS, BY VIRTUE OF ITS ACCEPTANCE
HEREOF, (I) THAT IT IS ACQUIRING THIS CLASS R CERTIFICATE FOR ITS OWN BEHALF AND
IS NOT ACTING AS AGENT OR CUSTODIAN FOR ANY OTHER PERSON OR ENTITY IN CONNECTION
WITH SUCH ACQUISITION, (II) IF THE HOLDER IS A PARTNERSHIP, GRANTOR TRUST OR S
CORPORATION FOR FEDERAL INCOME TAX PURPOSES (A "FLOW-THROUGH ENTITY"), ANY CLASS
R CERTIFICATE OWNED BY SUCH FLOW-THROUGH ENTITY WILL REPRESENT LESS THAN 50% OF
THE VALUE OF ALL THE ASSETS OWNED BY SUCH FLOW-THROUGH ENTITY AND NO SPECIAL
ALLOCATION OF INCOME, GAIN, LOSS, DEDUCTION OR CREDIT FROM SUCH CLASS R
CERTIFICATE WILL BE MADE AMONG THE BENEFICIAL OWNERS OF SUCH FLOW-THROUGH
ENTITY, AND (III) THE HOLDER IS A UNITED STATES PERSON WITHIN THE MEANING OF THE
CODE.

                                      B-1-2
<PAGE>

TRANSFER OF THIS CLASS R CERTIFICATE IS SUBJECT TO CERTAIN RESTRICTIONS SET
FORTH IN SECTION 3.7 OF THE AGREEMENT.

                                     B-1-3
<PAGE>

               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2004-B

                   UNDER AMENDED AND RESTATED TRUST AGREEMENT

                            DATED AS OF JULY 1, 2004

Certificate Number:

          WILMINGTON TRUST COMPANY, a Delaware banking corporation, not in its
individual capacity but solely as trustee (the "Owner Trustee") under an Amended
and Restated Trust Agreement, dated as of July 1, 2004, between Long Beach
Acceptance Receivables Corp., a Delaware corporation (the "Transferor") and the
Owner Trustee (the "Trust Agreement"), hereby certifies that LONG BEACH
ACCEPTANCE RECEIVABLES CORP. is the Holder of this Class R Certificate
representing the entire beneficial interest in the Long Beach Acceptance Auto
Receivables Trust (the "Trust") created by the Trust Agreement. This Class R
Certificate is issued pursuant to and is entitled to the benefits of the Trust
Agreement, and the Class R Certificateholder by acceptance hereof agrees to be
bound by the terms of the Trust Agreement. Reference is hereby made to the Trust
Agreement for a statement of the rights and obligations of the Class R
Certificateholder hereof. The Owner Trustee may treat the person shown on the
register maintained by the Owner Trustee pursuant to the Trust Agreement as the
absolute Class R Certificateholder hereof for all purposes.

          Capitalized terms used herein without definition have the meanings
ascribed to them in or by reference to the Trust Agreement.

          The Class R Certificateholder hereof, by its acceptance of this Class
R Certificate, warrants and represents to, and agrees with, the Owner Trustee
that it shall not transfer this Class R Certificate except in accordance with
the Trust Agreement.

          The Class R Certificateholder, by acceptance of its Class R
Certificate, specifically acknowledges that it has no right to or interest in
any monies at any time held pursuant to the Spread Account Agreement prior to
the release of such monies pursuant to Section 5.6 of the Sale and Servicing
Agreement, such monies being held in trust for the benefit of the Class A
Noteholders and the Note Insurer. Notwithstanding the foregoing, in the event
that it is ever determined that provisions of the Sale and Servicing Agreement
and the Spread Account Agreement shall be considered to constitute a security
agreement and the Transferor and the Class R Certificateholder hereby grant to
the Collateral Agent for the benefit of the Class A Noteholders and the Note
Insurer a first priority perfected security interest in such amounts, to be
applied as set forth in Section 3.03 of the Spread Account Agreement. In
addition the Class R Certificateholder, by acceptance of its Class R
Certificate, hereby appoints the Transferor as its agent to pledge a first
priority perfected security interest in the Spread Account, and any amounts held
therein from time to time to the Collateral Agent pursuant to the Spread Account
Agreement and agrees to execute and deliver such instruments of conveyance,
assignment, grant and confirmation, as well as financing statements, in each
case as the Note Insurer shall consider reasonably necessary in order to perfect
the Collateral Agent's Security Interest in the Collateral (as such terms are
defined in the Spread Account Agreement).

                                      B-1-4
<PAGE>

          This Class R Certificate and the Trust Agreement shall in all respects
be governed by, and construed in accordance with, the laws of the State of
Delaware, without regard to conflict-of-law principles.

                                      B-1-5
<PAGE>

          IN WITNESS WHEREOF, the Trust, pursuant to the Trust Agreement, has
caused this Class R Certificate to be issued as of the date hereof.

                                             LONG BEACH ACCEPTANCE AUTO
                                             RECEIVABLES TRUST 2004-B

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

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

Dated: July 16, 2004

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

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

                                             By:  Wilmington Trust Company,
                                                  Authenticating Agent

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

Dated: July 16, 2004

                                      B-1-6
<PAGE>

                                   ASSIGNMENT

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

PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE

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

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

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

Dated:

                                                                               *
                                                   -----------------------------

                                                                               *
                                                   -----------------------------

* NOTICE: The signature to this assignment must correspond with the name as it
appears upon the face of the within Class R Certificate in every particular,
without alteration, enlargement or any change whatever.

                                      B-1-7
<PAGE>

                                                                       EXHIBIT C

                    [FORM OF "QUALIFIED INSTITUTIONAL BUYER"
                            TRANSFEREE'S CERTIFICATE]

                                     [Date]

Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, DE  19890-0001
Attn: Corporate Trust Administration

Long Beach Acceptance Receivables Corp.
One Mack Centre Drive
Paramus, NJ  07652
Attn: President

           Re:   Long Beach Acceptance Auto Receivables Trust 2004-B

Ladies and Gentlemen:

          In connection with the proposed purchase by the buyer listed below
(the "Buyer") of the Class R Certificate (as defined below) issued pursuant to
the Amended and Restated Trust Agreement, dated as of July 1, 2004 (the "Trust
Agreement"), between Long Beach Acceptance Receivables Corp., as Transferor (the
"Transferor") and Wilmington Trust Company, as trustee (the "Owner Trustee"),
relating to Long Beach Acceptance Auto Receivables Trust 2004-B (the "Class R
Certificate"), the Buyer advises you as follows: (i) the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933, as amended (the "1933 Act") and is acquiring beneficial ownership
of the Class R Certificate for its own account or for the account of not more
than _ persons, each of which is a "qualified institutional buyer"; and (ii) the
Buyer satisfies the requirements of paragraph (a)(2)(ii) of Rule 3a-7 under the
Investment Company Act of 1940, as amended (the "1940 Act"). In addition to the
foregoing, you may rely on the information provided in Annex 1 or 2, as
applicable, attached hereto and incorporated herein.

          The Buyer understands that the Class R Certificate has not been
registered under the 1933 Act or the securities laws of any state. The Buyer
acknowledges that it has independently conducted such investigation and
evaluation of the merits and the risks involved in an investment in the Class R
Certificate and has received such information (whether from the Transferor, the
Owner Trustee, the transferor from which it proposes to purchase the Class R
Certificate, or from any other source) as the Buyer has deemed necessary and
advisable in order to make its investment decision. The Buyer has had any
questions arising from such investigation and evaluation answered by the
Transferor to the satisfaction of the Buyer. The

<PAGE>

Buyer is a sophisticated institutional investor, having such knowledge and
experience in financial and business matters generally, and with respect to
asset-backed securities and investments in "non-prime" automobile loans
specifically, that it is capable of independently evaluating the merits and
risks of investment in the Class R Certificate. In the normal course of its
business, the Buyer invests in or purchases securities similar to the Class R
Certificate. The Buyer is aware that it may be required to bear the economic
risk of an investment in the Class R Certificate for an indefinite period of
time, and it is able to bear such risk for an indefinite period.

                                               Very truly yours,

                                               [BUYER]

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

                                               Taxpayer ID:
                                                            --------------------
                                               Name in which Class R Certificate
                                               is to be Registered:

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

                                               Address for Notices:

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

                                               Payment Instructions:

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

                                       C-2
<PAGE>

                                                            ANNEX 1 TO EXHIBIT C

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

             [For Buyers Other Than Registered Investment Companies]

          The undersigned hereby certifies as follows to the parties listed in
the "Qualified Institutional Buyer" Transferee's Certificate to which this
certification relates with respect to the Rule 144A Securities described
therein:

          1. As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
Buyer.

          2. In connection with purchases by the Buyer, the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933 ("Rule 144A") because (i) the Buyer owned and/or invested
on a discretionary basis $_________________(1) in securities (except for the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year (such amount being calculated in accordance with Rule 144A) and (ii)
the Buyer satisfies the criteria in the category marked below.

[ ]  Corporation, etc. The Buyer is a corporation (other than a bank, savings
and loan association or similar institution), Massachusetts or similar business
trust, partnership, or charitable organization described in Section 501(c)(3) of
the Internal Revenue Code of 1986, as amended.

[ ]  Bank. The Buyer (a) is a national bank or banking institution organized
under the laws of any State, territory or the District of Columbia, the business
of which is substantially confined to banking and is supervised by the State or
territorial banking commission or similar official or is a foreign bank or
equivalent institution, and (b) has an audited net worth of at least $25,000,000
as demonstrated in its latest annual financial statements, a copy of which is
attached hereto.

[ ]  Savings and Loan. The Buyer (a) is a savings and loan association, building
and loan association, cooperative bank, homestead association or similar
institution, which is supervised and examined by a State or Federal authority
having supervision over any such institutions or is a foreign savings and loan
association or equivalent institution and (b) has an audited net worth of at
least $25,000,000 as demonstrated in its latest annual financial statements, a
copy of which is attached hereto.

[ ]  Broker-dealer. The Buyer is a dealer registered pursuant to Section 15 of
the Securities Exchange Act of 1934.

--------------------
(1) Buyer must own and/or invest on a discretionary basis at least $100,000,000
in securities unless Buyer is a dealer, and, in that case, Buyer must own and/or
invest on a discretionary basis at least $10,000,000 in securities.

                                       C-3
<PAGE>

[ ]  Insurance Company. The Buyer is an insurance company whose primary and
predominant business activity is the writing of insurance or the reinsuring of
risks underwritten by insurance companies and which is subject to supervision by
the insurance commissioner or a similar official or agency of a State, territory
or the District of Columbia.

[ ]  State or Local Plan. The Buyer is a plan established and maintained by a
State, its political subdivisions, or any agency or instrumentality of the State
or its political subdivisions, for the benefit of its employees.

[ ]  ERISA Plan. The Buyer is an employee benefit plan within the meaning of
Title I of the Employee Retirement Income Security Act of 1974.

[ ]  Investment Advisor. The Buyer is an investment advisor registered under the
Investment Advisers Act of 1940.

[ ]  Small Business Investment Company. Buyer is a small business investment
company licensed by the U.S. Small Business Administration under Section 301(c)
or (d) of the Small Business Investment Act of 1958.

[ ]  Business Development Company. Buyer is a business development company as
defined in Section 202(a)(22) of the Investment Advisors Act of 1940.

[ ]  Trust Fund. The Buyer is a trust fund whose trustee is a bank or trust
company and whose participants are exclusively State or Local Plans or ERISA
Plans as defined above, and no participant of the Buyer is an individual
retirement account or an H.R. 10 (Keogh) plan.

          3. The term "securities" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer, (ii) securities that
are part of an unsold allotment to or subscription by the Buyer, if the Buyer is
a dealer, (iii) bank deposit notes and certificates of deposit, (iv) loan
participations, (v) repurchase agreements, (vi) securities owned but subject to
a repurchase agreement and (vii) currency, interest rate and commodity swaps.

          4. For purposes of determining the aggregate amount of securities
owned and/or invested on a discretionary basis by the Buyer, the Buyer used the
cost of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph, except (i) where the Buyer reports its
securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
the securities may be valued at market. Further, in determining such aggregate
amount, the Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934.

          5. The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the Class R
Certificate are relying and

                                       C-4
<PAGE>

will continue to rely on the statements made herein because one or more sales to
the Buyer may be in reliance on Rule 144A.

          6. Until the date of purchase of the Rule 144A Securities, the Buyer
will notify each of the parties to which this certification is made of any
changes in the information and conclusions herein. Until such notice is given,
the Buyer's purchase of Rule 144A Securities will constitute a reaffirmation of
this certification as of the date of such purchase. In addition, if the Buyer is
a Bank or Savings and Loan as provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

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

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

                                                    Date:

                                       C-5

<PAGE>

                                                            ANNEX 2 TO EXHIBIT C

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

              [For Buyers that are Registered Investment Companies]

          The undersigned hereby certifies as follows to the parties listed in
the "Qualified Institutional Buyer" Transferee's Certificate to which this
certification relates with respect to the Rule 144A Securities described
therein:

          1. As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933 ("Rule 144A") because Buyer is part of a Family of
Investment Companies (as defined below), is such an officer of the Adviser.

          2. In connection with purchases by Buyer, the Buyer is a "qualified
institutional buyer" as defined in SEC Rule 144A because (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, and (ii)
as marked below, the Buyer alone, or the Buyer's Family of Investment Companies,
owned at least $100,000,000 in securities (other than the excluded securities
referred to below) as of the end of the Buyer's most recent fiscal year. For
purposes of determining the amount of securities owned by the Buyer or the
Buyer's Family of Investment Companies, the cost of such securities was used,
except (i) where the Buyer or the Buyer's Family of Investment Companies reports
its securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
the securities may be valued at market.

          [ ]  The Buyer owned $__________ in securities (other than the
          excluded securities referred to below) as of the end of the Buyer's
          most recent fiscal year (such amount being calculated in accordance
          with Rule 144A).

          [ ]  The Buyer is part of a Family of Investment Companies which owned
          in the aggregate $__________ in securities (other than the excluded
          securities referred to below) as of the end of the Buyer's most recent
          fiscal year (such amount being calculated in accordance with Rule
          144A).

          3. The term "Family of Investment Companies" as used herein means two
or more registered investment companies (or series thereof) that have the same
investment adviser or investment advisers that are affiliated (by virtue of
being majority owned subsidiaries of the same parent or because one investment
adviser is a majority owned subsidiary of the other).

          4. The term "securities" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer or are part of the
Buyer's Family of Investment Companies, (ii) bank deposit notes and certificates
of deposit, (iii) loan participations, (iv) repurchase agreements, (v)
securities owned but subject to a repurchase agreement and (vi) currency,
interest rate and commodity swaps.

                                       C-6
<PAGE>

          5. The Buyer is familiar with Rule 144A and understands that the
parties listed in the Qualified Institutional Buyer Transferee's Certificate to
which this certification relates are relying and will continue to rely on the
statements made herein because one or more sales to the Buyer will be in
reliance on Rule 144A. In addition, the Buyer will only purchase for the Buyer's
own account.

          6. Until the date of purchase of the Rule 144A Securities, the
undersigned will notify each of the parties to which this certification is made
of any changes in the information and conclusions herein. Until such notice is
given, the Buyer's purchase of Rule 144A Securities will constitute a
reaffirmation of this certification by the undersigned as of the date of such
purchase.

                                                --------------------------------
                                                Print Name of Buyer or Adviser

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

                                                IF AN ADVISER:

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

                                                Date:

                                       C-7
<PAGE>

                                                                       EXHIBIT D

            [FORM OF "ACCREDITED INVESTOR" TRANSFEREE'S CERTIFICATE]

                                     [Date]

Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890-0001
Attn: Corporate Trust Administration

Long Beach Acceptance Receivables Corp.
One Mack Centre Drive
Paramus, NJ 07652
Attn: President

        Re:   Long Beach Acceptance Auto Receivables Trust 2004-B

Dear Sirs:

          In connection with the proposed purchase by the buyer listed below
(the "Buyer") of the Class R Certificate (as defined below) issued pursuant to
the Amended and Restated Trust Agreement, dated as of July 1, 2004 (the "Trust
Agreement"), between Long Beach Acceptance Receivables Corp., as Transferor (the
"Transferor"), and Wilmington Trust Company, as trustee (the "Owner Trustee"),
relating to Long Beach Acceptance Auto Receivables Trust 2004-B (the "Class R
Certificate"), the Buyer confirms that:

          1. The Buyer understands that the Class R Certificate has not been
registered under the Securities Act of 1933, as amended (the "1933 Act"), and
may not be sold except as permitted in the following sentence. The Buyer agrees,
on its own behalf and on behalf of any accounts for which it is acting as
hereinafter stated, that such Class R Certificate may be resold, pledged or
transferred only: (i) so long as such Class R Certificate is eligible for resale
pursuant to Rule 144A under the 1933 Act ("Rule 144A"), to a person who the
Buyer reasonably believes is a "qualified institutional buyer" as defined in
Rule 144A (a "QIB") that purchases for its own account or for the account of a
QIB, to whom notice is given that the resale, pledge or transfer is being made
in reliance on Rule 144A, (ii) pursuant to an exemption from registration under
the 1933 Act provided by Rule 144 (if applicable) under the 1933 Act or (iii) to
an institution that is an "Accredited Investor" as defined in Rule 501(a)(1),
(2), (3) or (7) under the 1933 Act (an "Accredited Investor") that is acquiring
the Class R Certificate for investment purposes and not for distribution, in
each case in accordance with any applicable securities laws of any state of the
United States, and the Buyer will notify any purchaser of the Class R
Certificate from it of the above resale restrictions. The Buyer further
understands that in connection with any transfer of the Class R Certificate to
an Accredited Investor by it that the Transferor or Owner Trustee may request,
and if so requested the Buyer will furnish, such certificates and other
information as they may reasonably require to confirm any such transfer with the
foregoing restrictions.

<PAGE>

          2. The Buyer is an institutional investor which is an Accredited
Investor or, if the Class R Certificate is to be purchased for one or more
institutional accounts ("investor accounts") for which it is acting as fiduciary
or agent (except if it is a bank as defined in Section 3(a)(2) of the 1933 Act,
or a savings and loan association or other institution as described in Section
3(a)(5)(A) of the 1933 Act, whether acting in its individual or in a fiduciary
capacity), each such investor account is an institutional investor and an
Accredited Investor on a like basis. In the normal course of its business, the
Buyer invests in or purchases securities similar to the Class R Certificate.

          3. The Buyer satisfies the requirements of paragraph (a)(2)(i) of Rule
3a-7 of the Investment Company Act of 1940, as amended.

          4. The Buyer acknowledges that it has independently conducted such
investigation and evaluation of the merits and the risks involved in an
investment in the Class R Certificate and has received such information (whether
from the Transferor, the Servicer, the transferor from which it proposes to
purchase the Class R Certificate, or from any other source) as the Buyer has
deemed necessary and advisable in order to make its investment decision. The
Buyer has had any questions arising from such investigation and evaluation
answered by the Transferor to the satisfaction of the Buyer. The Buyer is a
sophisticated institutional investor, having such knowledge and experience in
financial and business matters generally, and with respect to asset-backed
securities and investments in "non-prime" automobile loans specifically, that it
is capable of independently evaluating the merits and risks of investment in the
Class R Certificate. In the normal course of its business, the Buyer invests in
or purchases securities similar to the Class R Certificate. The Buyer is aware
that it (or any investor account) may be required to bear the economic risk of
an investment in the Class R Certificate for an indefinite period of time, and
it (or such account) is able to bear such risk for an indefinite period.

                                              Very truly yours,

                                              [BUYER]

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

                                       D-2
<PAGE>

                                                                       EXHIBIT E

                       [FORM OF TRANSFEROR'S CERTIFICATE]

                                     [Date]

Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890-0001
Attn: Corporate Trust Administration

           Re:  Long Beach Acceptance Auto Receivables Trust 2004-B

Ladies and Gentlemen:

          In connection with the disposition by the transferor listed below (the
"Transferor") of the Class R Certificate (as defined below) issued pursuant to
the Amended and Restated Trust Agreement, dated as of July 1, 2004 (the "Trust
Agreement") between Long Beach Acceptance Receivables Corp., as Transferor (the
"Transferor"), and Wilmington Trust Company, as trustee (the "Owner Trustee"),
relating to Long Beach Acceptance Auto Receivables Trust 2004-B (the "Class R
Certificate"), the Transferor certifies that:

          (a) the Transferor understands that the Class R Certificate has not
been registered under the Securities Act of 1933, as amended (the "1933 Act"),
and are being disposed of by the Transferor in a transaction that is exempt from
the registration requirements of the 1933 Act; and

          (b) the Transferor has not offered or sold the Class R Certificate to,
or solicited offers to buy the Class R Certificate from, any person, or
otherwise approached or negotiated with any person with respect thereto, in a
manner that would be deemed, or taken any other action which would result in, a
violation of Section 5 of the 1933 Act.

                                             Very truly yours,

                                             [Name of Transferor]

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

<PAGE>

                                                                       EXHIBIT F

                           [FORM OF ERISA CERTIFICATE]

                                     [Date]

Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890-0001
Attn: Corporate Trust Administration

Long Beach Acceptance Receivables Corp.
One Mack Centre Drive
Paramus, NJ 07652
Attn: President

         Re:   Long Beach Acceptance Auto Receivables Trust 2004-B

Ladies and Gentlemen:

[NAME OF OFFICER] hereby certifies that:

          1. That he [she] is [Title of Officer] ____________________ of [Name
of Transferee] ___________________________________________ (the "Transferee"), a
[savings institution] [corporation] duly organized and existing under the laws
of [the State of ________] [the United States], on behalf of which he [she]
makes this affidavit.

          2. The Transferee (1) is not, and on _______________ [insert date of
transfer of Class R Certificate to Transferee] will not be, and on such date
will not be acting on behalf of or investing the assets of (a) an "employee
benefit plan" (as defined in Section 3(3) of the Employee Retirement Income
Security Act of 1974, as amended ("ERISA")) that is subject to the provisions of
Title I of ERISA or (b) a "plan" (as defined in Section 4975(e)(1) of the
Internal Revenue Code of 1986, as amended (the "Code")) that is subject to
Section 4975 of the Code (each, a "Plan").

          3. In connection with the proposed purchase by the Transferee of the
Class R Certificate issued pursuant to the Trust Agreement (the "Agreement")
between Long Beach Acceptance Receivables Corp., as Transferor (the
"Transferor"), and Wilmington Trust Company, as trustee (the "Owner Trustee"),
dated as of July 1, 2004, the Transferee hereby acknowledges that under the
terms of the Agreement no transfer of any Class R Certificate (as defined in the
Agreement) shall be permitted to be made to any person unless the Owner Trustee
has received a certificate from such transferee to the effect that such
transferee is not a Plan and is not acting on behalf of or investing the assets
of a Plan.

          [4. The Class R Certificate shall be registered in the name of
_________________ as nominee for the Transferee.]

<PAGE>

          IN WITNESS WHEREOF, the Transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
[Title of Officer] _______________, this__ day of ____________.

                                                [NAME OF TRANSFEREE]

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

The undersigned hereby acknowledges
that it is holding and will hold
the Class R Certificate at the
exclusive direction of and as
nominee of the Investor named
above.

[NAME OF NOMINEE]

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

                                       F-2
<PAGE>

                                                                       EXHIBIT G

                    [FORM OF FLOW THROUGH ENTITY CERTIFICATE]

                                     [Date]

Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890-0001
Attn: Corporate Trust Administration

Long Beach Acceptance Receivables Corp.
One Mack Centre Drive
Paramus, NJ 07652
Attn: President

        Re:   Long Beach Acceptance Auto Receivables Trust 2004-B

Ladies and Gentlemen:

[NAME OF OFFICER] hereby certifies that:

          1. That he [she] is [Title of Officer] ____________ of [Name of
Transferee] _______________________________ (the "Transferee"), a [savings
institution] [corporation] duly organized and existing under the laws of [the
State of ____________] [the United States], on behalf of which he [she] makes
this affidavit.

          2. The Transferee (a) is acquiring the Class R Certificate (as defined
below) for its own behalf and is not acting as agent or custodian for any other
person or entity in connection with such acquisition, (b) if the Transferee is a
partnership, grantor trust or S corporation for federal income tax purposes (a
"Flow Through Entity"), any Class R Certificate owned by such Flow Through
Entity will represent less than 50% of the value of all the assets owned by such
Flow Through Entity and no special allocation of income, gain, loss, deduction
or credit from such Class R Certificate will be made among the beneficial owners
of such Flow Through Entity, and (c) the Transferee is a United States person
within the meaning of the Internal Revenue Code of 1986, as amended.

          3. The Transferee hereby acknowledges that under the terms of the
Amended and Restated Trust Agreement (the "Agreement") between Long Beach
Acceptance Receivables Corp., as Transferor (the "Transferor"), and Wilmington
Trust Company, as trustee (the "Owner Trustee"), dated as of July 1, 2004 no
transfer of any Class R Certificate (as defined in the Agreement) shall be
permitted to be made to any person unless the Owner Trustee has received a
certificate from such transferee to the effect that such transferee (a) is
acquiring the Class R Certificate for its own behalf and is not acting as agent
or custodian for any other person or entity in connection with such acquisition,

<PAGE>

(b) if the transferee is a partnership, grantor trust or S corporation for
federal income tax purposes (a "Flow Through Entity"), any Class R Certificate
owned by such Flow Through Entity will represent less than 50% of the value of
all the assets owned by such Flow Through Entity and no special allocation of
income, gain, loss, deduction or credit from such Class R Certificate will be
made among the beneficial owners of such Flow Through Entity, and (c) the
transferee is a United States person within the meaning of the Internal Revenue
Code of 1986 as amended.

          [4. The Class R Certificate shall be registered in the name of as
nominee for the Transferee.]

          IN WITNESS WHEREOF, the Transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
[Title of Officer) _____________________________, this ___ day of _________.

                                               [NAME OF TRANSFEREE]

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

The undersigned hereby acknowledges
that it is holding and will hold
the Class R Certificate at the
exclusive direction of and as
nominee of the Investor named
above.

[NAME OF NOMINEE]

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

                                       G-2<PAGE>

                                                              FINANCIAL GUARANTY
                                                                INSURANCE POLICY

Obligor: Long Beach Acceptance Auto                          Policy No.: 51539-N
         Receivables Trust 2004-B
Obligations: $250,000,000 Asset-Backed Notes,          Date of Issuance: 7/16/04
             as described in Endorsement No. 1

         FINANCIAL SECURITY ASSURANCE INC. ("Financial Security"), for
consideration received, hereby UNCONDITIONALLY AND IRREVOCABLY GUARANTEES to
each Holder, subject only to the terms of this Policy (which includes each
endorsement hereto), the full and complete payment by the Obligor of Scheduled
Payments of principal of, and interest on, the Obligations.

         For the further protection of each Holder, Financial Security
irrevocably and unconditionally guarantees:

         (a) payment of the amount of any distribution of principal of, or
     interest on, the Obligations made during the Term Of This Policy to such
     Holder that is subsequently avoided in whole or in part as a preference
     payment under applicable law (such payment to be made by Financial Security
     in accordance with Endorsement No. 1 hereto).

         (b) payment of any amount required to be paid under this Policy by
     Financial Security following Financial Security's receipt of notice as
     described in Endorsement No. 1 hereto.

         Financial Security shall be subrogated to the rights of each Holder to
receive payments under the Obligations to the extent of any payment by Financial
Security hereunder.

         Except to the extent expressly modified by an endorsement hereto, the
following terms shall have the meanings specified for all purposes of this
Policy. "Holder" means the registered owner of any Obligation as indicated on
the registration books maintained by or on behalf of the Obligor for such
purpose or, if the Obligation is in bearer form, the holder of the Obligation.
"Scheduled Payments" means payments which are scheduled to be made during the
Term Of This Policy in accordance with the original terms of the Obligations
when issued and without regard to any amendment or modification of such
Obligations thereafter; payments which become due on an accelerated basis as a
result of (a) a default by the Obligor, (b) an election by the Obligor to pay
principal on an accelerated basis or (c) any other cause, shall not constitute
"Scheduled Payments" unless Financial Security shall elect, in its sole
discretion, to pay such principal due upon such acceleration together with any
accrued interest to the date of acceleration. "Term Of This Policy" shall have
the meaning set forth in Endorsement No. 1 hereto.

         This Policy sets forth in full the undertaking of Financial Security,
and shall not be modified, altered or affected by any other agreement or
instrument, including any modification or amendment thereto, or by the merger,
consolidation or dissolution of the Obligor. Except to the extent expressly
modified by an endorsement hereto, the premiums paid in respect of this Policy
are nonrefundable for any reason whatsoever, including payment, or provision
being made for payment, of the Obligations prior to maturity. This Policy may
not be canceled or revoked during the Term Of This Policy. THIS POLICY IS NOT
COVERED BY THE PROPERTY/CASUALTY INSURANCE SECURITY FUND SPECIFIED IN ARTICLE 76
OF THE NEW YORK INSURANCE LAW.

         In witness whereof, FINANCIAL SECURITY ASSURANCE INC. has caused this
Policy to be executed on its behalf by its Authorized Officer.

                                               FINANCIAL SECURITY ASSURANCE INC.

                                               By /s/  M. Douglas Watson, Jr.
                                                  ------------------------------
                                                       AUTHORIZED OFFICER

A subsidiary of Financial Security Assurance Holdings Ltd.
350 Park Avenue, New York, N.Y.  10022-6022                       (212) 826-0100
Form 100NY (5/89)

<PAGE>

                                ENDORSEMENT NO. 1
                     TO FINANCIAL GUARANTY INSURANCE POLICY

FINANCIAL SECURITY                                               350 Park Avenue
ASSURANCE INC.                                          New York, New York 10022

OBLIGOR:  LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2004-B

OBLIGATIONS:      $42,000,000 1.57625% Asset-Backed Notes, Class A-1
                  $100,000,000 2.65% Asset-Backed Notes, Class A-2
                  $58,000,000 3.46% Asset-Backed Notes, Class A-3
                  $50,000,000 4.05% Asset-Backed Notes, Class A-4

Policy No.:       51539-N

Date of Issuance: July 16, 2004

         1. Definitions. For all purposes of this Policy, the terms specified
below shall have the meanings or constructions provided below. Capitalized terms
used herein and not otherwise defined herein shall have the meanings provided in
the Indenture unless the context shall otherwise require.

         "Business Day" means any day other than (i) a Saturday or Sunday or
(ii) a day on which banking institutions in the City of New York, Minneapolis,
Minnesota, the State of New Jersey, the State of Delaware, the city in which the
Corporate Trust Office of the Trust Collateral Agent or the Owner Trustee is
relocated subject to prior written notice with respect to such address to the
Class A Noteholders, the Servicer and the Note Insurer or any other location of
any successor Servicer, successor Owner Trustee, successor Indenture Trustee or
successor Trust Collateral Agent are authorized or obligated by law or executive
order to be closed.

         "Class A Interest Payment Amount" shall have the meaning set forth in
the Sale and Servicing Agreement.

         "Class A Noteholder" shall have the meaning set forth in the Indenture;
provided, however, that Class A Noteholder shall not include the Obligor or any
affiliates or successors thereof in the event the Obligor, or any such affiliate
or successor, is a registered or beneficial owner of a Class A Note.

         "Class A-1 Interest Carryover Shortfall" shall have the meaning set
forth in the Sale and Servicing Agreement.

         "Class A-2 Interest Carryover Shortfall" shall have the meaning set
forth in the Sale and Servicing Agreement.

<PAGE>

Policy No.: 51539-N                              Date of Issuance: July 16, 2004

         "Class A-3 Interest Carryover Shortfall" shall have the meaning set
forth in the Sale and Servicing Agreement.

         "Class A-4 Interest Carryover Shortfall" shall have the meaning set
forth in the Sale and Servicing Agreement.

         "Final Scheduled Payment Date" shall have the meaning set forth in the
Sale and Servicing Agreement.

         "Financial Security" means Financial Security Assurance Inc., a New
York stock insurance company.

         "Indenture" means the Indenture, dated as of July 1, 2004, between Long
Beach Acceptance Auto Receivables Trust 2004-B, as Issuer and Wells Fargo Bank,
National Association, as Indenture Trustee, as amended from time to time in
accordance with its terms.

         "Indenture Trustee" means Wells Fargo Bank, National Association, a
national banking association, in its capacity as Indenture Trustee under the
Indenture and any successor in such capacity.

         "Noteholders' Remaining Parity Deficit Amount" shall have the meaning
set forth in the Sale and Servicing Agreement.

         "Policy" means this Financial Guaranty Insurance Policy and includes
each endorsement thereto.

         "Principal Payment Amount" shall have the meaning set forth in the Sale
and Servicing Agreement.

         "Receipt" and "Received" mean actual delivery to Financial Security and
to the Fiscal Agent (as defined below), if any, prior to 12:00 noon, New York
City time, on a Business Day; delivery either on a day that is not a Business
Day, or after 12:00 noon, New York City time, shall be deemed to be "Receipt" on
the next succeeding Business Day. If any notice or certificate given hereunder
by the Trustee is not in proper form or is not properly completed, executed or
delivered, it shall be deemed not to have been Received, and Financial Security
or its Fiscal Agent shall promptly so advise the Trust Collateral Agent and the
Trust Collateral Agent may submit an amended notice.

         "Sale and Servicing Agreement" means the Sale and Servicing Agreement,
dated as of July 1, 2004, among the Obligor, as Issuer, Long Beach Acceptance
Receivables Corp., as Transferor, Long Beach Acceptance Corp., as Originator,
Servicer and Custodian and Wells Fargo Bank, National Association, as Back-up
Servicer and Trust Collateral Agent, as amended from time to time in accordance
with its terms.

         "Scheduled Payments" means, (i) with respect to each Payment Date, the
distribution to be made to Class A Noteholders in an aggregate amount equal to
the Class A Interest Payment Amount and the Noteholders' Remaining Parity
Deficit Amount,

                                       2
<PAGE>

Policy No.: 51539-N                              Date of Issuance: July 16, 2004

each as due and payable on such Payment Date, and (ii) with respect to the Final
Scheduled Payment Date for any Class of Notes, the Principal Payment Amount of
such Class on such Final Scheduled Payment Date, after taking into account
reductions on such Final Scheduled Payment Date of such Principal Payment Amount
from all sources other than this Policy, in each case in accordance with the
original terms of the Class A Notes when issued and without regard to any
amendment or modification of the Class A Notes, the Indenture, or the Sale and
Servicing Agreement except amendments or modifications to which Financial
Security has given its prior written consent; provided, however, that Scheduled
Payments shall not include (x) any portion of the Class A Interest Payment
Amount due to Class A Noteholders because the appropriate notice and certificate
for payment in proper form was not timely Received by Financial Security or (y)
any portion of the Class A Interest Payment Amount due to Class A Noteholders
representing interest on any Class A-1 Interest Carryover Shortfall, Class A-2
Interest Carryover Shortfall, Class A-3 Interest Carryover Shortfall or Class
A-4 Interest Carryover Shortfall, unless, in each case, Financial Security
elects, in its sole discretion, to pay such amount in whole or in part.
Scheduled Payments do not include payments that become due on an accelerated
basis as a result of (a) a default by the Obligor, (b) an election by the
Obligor to pay principal on an accelerated basis, (c) the occurrence of an Event
of Default under the Indenture or (d) any other cause, unless, in each case,
Financial Security elects, in its sole discretion, to pay in whole or in part
such principal due upon acceleration, together with any accrued interest to the
date of acceleration. Scheduled Payments shall not include any amounts due in
respect of the Class A Notes attributable to any increase in interest rate, any
penalty or any similar additional sum payable by the Obligor by reason of any
default or event of default in respect of the Obligations or by reason of any
deterioration of the creditworthiness of the Obligor. Scheduled Payments shall
not include, nor shall coverage be provided under the Policy in respect of, any
taxes, withholding or other charge imposed by any governmental authority due in
connection with the payment of any Scheduled Payment to a Class A Noteholder.

         "Term Of This Policy" means the period from and including the Date of
Issuance to and including the latest of the date on which (i) the outstanding
principal amount of the Class A Notes has been reduced to zero and all
distributions of Class A Interest Payment Amount have been paid on the Class A
Notes, (ii) any period during which any payment on the Class A Notes could have
been avoided in whole or in part as a preference payment under applicable
bankruptcy, insolvency, receivership or similar law has expired, and (iii) if
any proceedings requisite to avoidance as a preference payment have been
commenced prior to the occurrence of (i) and (ii), a final and nonappealable
order in resolution of each such proceeding has been entered.

         "Trust Collateral Agent" means Wells Fargo Bank, National Association,
a national banking association, in its capacity as Trust Collateral Agent under
the Sale and Servicing Agreement and any successor in such capacity.

         2. Notices and Conditions to Payment in Respect of Scheduled Payments.
Following Receipt by Financial Security of a notice and certificate from the
Trust Collateral Agent in the form attached as Exhibit A to this Endorsement,
Financial Security will pay any amount payable hereunder in respect of Scheduled
Payments on the

                                       3
<PAGE>

Policy No.: 51539-N                              Date of Issuance: July 16, 2004

Obligations out of the funds of Financial Security on the later to occur of (a)
12:00 noon, New York City time, on the third Business Day following such
Receipt; and (b) 12:00 noon, New York City time, on the Payment Date to which
such claim relates. Payments due hereunder in respect of Scheduled Payments will
be disbursed by wire transfer of immediately available funds to the Policy
Payments Account established pursuant to the Sale and Servicing Agreement or, if
no such Policy Payments Account has been established, to the Trust Collateral
Agent.

         Financial Security shall be entitled to pay any amount hereunder in
respect of Scheduled Payments on the Obligations including any amount due on the
Obligations on an accelerated basis, whether or not any notice and certificate
shall have been Received by Financial Security as provided above; provided,
however, that by acceptance of this Policy the Trust Collateral Agent agrees to
provide to Financial Security, upon request by Financial Security to the Trust
Collateral Agent a notice of claim and certificate in respect of any such
payments made by Financial Security. Financial Security shall be entitled to pay
hereunder any amount due on the Obligations that becomes due on an accelerated
basis at any time or from time to time after such amount becomes due, in whole
or in part, prior to the scheduled date of payment thereof. Scheduled Payments
insured hereunder shall not include interest, in respect of principal paid
hereunder on an accelerated basis, accruing from and after the date of such
payment of principal. Financial Security's obligations hereunder in respect of
Scheduled Payments shall be discharged to the extent funds are disbursed by
Financial Security as provided herein whether or not such funds are properly
applied by the Trust Collateral Agent.

         3. Notices and Conditions to Payment in Respect of Scheduled Payments
Avoided as Preference Payments. If any Scheduled Payment is avoided as a
preference payment under applicable bankruptcy, insolvency, receivership or
similar law, Financial Security will pay such amount out of the funds of
Financial Security on the later of (a) the date when due to be paid pursuant to
the Order (as defined below) or (b) the first to occur of (i) the fourth
Business Day following Receipt by Financial Security from the Trust Collateral
Agent of (A) a certified copy of the order (the "Order") of the court or other
governmental body which exercised jurisdiction to the effect that the Class A
Noteholder is required to return the amount of any Scheduled Payment distributed
with respect to the Obligations during the Term Of This Policy because such
distributions were avoidable as preference payments under applicable bankruptcy
law, (B) a certificate of the Class A Noteholder that the Order has been entered
and is not subject to any stay and (C) an assignment duly executed and delivered
by the Class A Noteholder, in such form as is reasonably required by Financial
Security and provided to the Class A Noteholder by Financial Security,
irrevocably assigning to Financial Security all rights and claims of the Class A
Noteholder relating to or arising under the Obligations against the debtor which
made such preference payment or otherwise with respect to such preference
payment or (ii) the date of Receipt by Financial Security from the Trust
Collateral Agent of the items referred to in clauses (A), (B) and (C) above if,
at least four Business Days prior to such date of Receipt, Financial Security
shall have Received written notice from the Trust Collateral Agent that such
items were to be delivered on such date and such date was specified in such
notice. Such payment shall be disbursed to the receiver, conservator,
debtor-in-possession or trustee in bankruptcy named in the

                                       4
<PAGE>

Policy No.: 51539-N                              Date of Issuance: July 16, 2004

Order and not to the Trust Collateral Agent or any Class A Noteholder directly
(unless a Class A Noteholder has previously paid such amount to the receiver,
conservator, debtor-in-possession or trustee in bankruptcy named in the Order,
in which case such payment shall be disbursed to the Trust Collateral Agent for
distribution to such Class A Noteholder upon proof of such payment reasonably
satisfactory to Financial Security). In connection with the foregoing, Financial
Security shall have the rights provided pursuant to Section 6.3 of the Sale and
Servicing Agreement.

         4. Governing Law. This Policy shall be governed by and construed in
accordance with the laws of the State of New York, without giving effect to the
conflict of laws principles thereof.

         5. Fiscal Agent. At any time during the Term Of This Policy, Financial
Security may appoint a fiscal agent (the "Fiscal Agent") for purposes of this
Policy by written notice to the Trust Collateral Agent at the notice address
specified in the Sale and Servicing Agreement specifying the name and notice
address of the Fiscal Agent. From and after the date of receipt of such notice
by the Trust Collateral Agent, (i) copies of all notices and documents required
to be delivered to Financial Security pursuant to this Policy shall be
simultaneously delivered to the Fiscal Agent and to Financial Security and shall
not be deemed Received until Received by both and (ii) all payments required to
be made by Financial Security under this Policy may be made directly by
Financial Security or by the Fiscal Agent on behalf of Financial Security. The
Fiscal Agent is the agent of Financial Security only and the Fiscal Agent shall
in no event be liable to any Class A Noteholder for any acts of the Fiscal Agent
or any failure of Financial Security to deposit, or cause to be deposited,
sufficient funds to make payments due under this Policy.

         6. Waiver of Defenses. To the fullest extent permitted by applicable
law, Financial Security agrees not to assert, and hereby waives, for the benefit
of each Class A Noteholder, all rights (whether by counterclaim, setoff or
otherwise) and defenses (including, without limitation, the defense of fraud),
whether acquired by subrogation, assignment or otherwise, to the extent that
such rights and defenses may be available to Financial Security to avoid payment
of its obligations under this Policy in accordance with the express provisions
of this Policy.

         7. Notices. All notices to be given hereunder shall be in writing
(except as otherwise specifically provided herein) and shall be mailed by
registered mail or personally delivered or telecopied to Financial Security as
follows:

          Financial Security Assurance Inc.
          350 Park Avenue
          New York, NY 10022
          Attention: Senior Vice President - Transaction Oversight
          Re: Long Beach Acceptance Auto Receivables Trust 2004-B
          Policy No. 51539-N
          Telecopy No.: (212) 339-3518
          Confirmation: (212) 826-0100

                                       5
<PAGE>

Policy No.: 51539-N                              Date of Issuance: July 16, 2004

Financial Security may specify a different address or addresses by writing
mailed or delivered to the Trust Collateral Agent.

         8. Priorities. In the event any term or provision of the face of this
Policy is inconsistent with the provisions of this Endorsement, the provisions
of this Endorsement shall take precedence and shall be binding.

         9. Exclusions From Insurance Guaranty Funds. This Policy is not covered
by the Property/Casualty Insurance Security Fund specified in Article 76 of the
New York Insurance Law. This Policy is not covered by the Florida Insurance
Guaranty Association created under Part II of Chapter 631 of the Florida
Insurance Code. In the event Financial Security were to become insolvent, any
claims arising under this Policy are excluded from coverage by the California
Insurance Guaranty Association, established pursuant to Article 14.2 of Chapter
1 of Part 2 of Division 1 of the California Insurance Code.

         10. Surrender of Policy. The Trust Collateral Agent shall surrender
this Policy to Financial Security for cancellation upon expiration of the Term
Of This Policy.

         IN WITNESS WHEREOF, FINANCIAL SECURITY ASSURANCE INC. has caused this
Endorsement No. 1 to be executed by its Authorized Officer.

                                         FINANCIAL SECURITY ASSURANCE INC.

                                         By /s/  M. Douglas Watson, Jr.
                                            ------------------------------------
                                            Authorized Officer

                                       6
<PAGE>

Policy No.: 51539-N                              Date of Issuance: July 16, 2004

                                                      EXHIBIT A TO ENDORSEMENT 1

                         NOTICE OF CLAIM AND CERTIFICATE
                         -------------------------------
                     (Letterhead of Trust Collateral Agent)

Financial Security Assurance Inc.
350 Park Avenue
New York, NY 10022

     Re: Long Beach Acceptance Auto Receivables Trust 2004-B

     The undersigned, a duly authorized officer of Wells Fargo Bank, National
Association (the "Trust Collateral Agent"), hereby certifies to Financial
Security Assurance Inc. ("Financial Security"), with reference to Financial
Guaranty Insurance Policy No. 51539-N dated July 16, 2004 (the "Policy") issued
by Financial Security in respect of the Long Beach Acceptance Auto Receivables
Trust 2004-B $42,000,000 1.57625% Asset Backed Notes, Class A-1 and $100,000,000
2.65% Asset Backed Notes, Class A-2, $58,000,000 3.46% Asset Backed Notes, Class
A-3 and $50,000,000 4.05% Asset Backed Notes, Class A-4 (collectively, the
"Class A Notes"), that:

         (i) The Trust Collateral Agent is the Trust Collateral Agent under the
     Sale and Servicing Agreement for the Class A Noteholders.

         (ii) The sum of all amounts on deposit (or scheduled to be on deposit)
     in the Class A Note Account and available for distribution to the Class A
     Noteholders pursuant to the Sale and Servicing Agreement will be $
     _________ (the "Shortfall") less than the Scheduled Payments with respect
     to the Payment Date occurring __________, ____.

         (iii) The Trust Collateral Agent is making a claim under the Policy for
     the Shortfall to be applied to distributions of Scheduled Payments with
     respect to the Class A Notes.

         (iv) The Trust Collateral Agent agrees that, following receipt of funds
     from Financial Security, it shall (a) hold such amounts in trust and apply
     the same directly to the payment of Scheduled Payments on the Obligations
     when due; (b) not apply such funds for any other purpose; (c) not commingle
     such funds with other funds held by the Trust Collateral Agent and (d)
     maintain an accurate record of such payments with respect to each Class A
     Note and the corresponding claim on the Policy and proceeds thereof and, if
     the Class A Note is required to be surrendered or presented for such
     payment, shall stamp on each such Class A Note the legend "$[insert
     applicable amount] paid by Financial Security and the balance hereof has
     been canceled and reissued" and then shall deliver such Class A Note to
     Financial Security.

                                      A-1
<PAGE>

Policy No.: 51539-N                              Date of Issuance: July 16, 2004

         (v) The Trust Collateral Agent, on behalf of the Class A Noteholders,
     hereby assigns to Financial Security the rights of the Class A Noteholders
     with respect to the Class A Notes to the extent of any payments under the
     Policy, including, without limitation, any amounts due to the Class A
     Noteholders in respect of securities law violations arising from the offer
     and sale of the Class A Notes. The foregoing assignment is in addition to,
     and not in limitation of, rights of subrogation otherwise available to
     Financial Security in respect of such payments. The Trust Collateral Agent
     shall take such action and deliver such instruments as may be reasonably
     requested or required by Financial Security to effectuate the purpose or
     provisions of this clause (v).

         (vi) The Trust Collateral Agent, on its behalf and on behalf of the
     Class A Noteholders, hereby appoints Financial Security as agent and
     attorney-in-fact for the Trust Collateral Agent and each such Class A
     Noteholder in any legal proceeding with respect to the Class A Notes. The
     Trust Collateral Agent hereby agrees that Financial Security may at any
     time during the continuation of any proceeding by or against any debtor
     with respect to which a Preference Claim (as defined below) or other claim
     with respect to the Class A Notes is asserted under the United States
     Bankruptcy Code or any other applicable bankruptcy, insolvency,
     receivership, rehabilitation or similar law (an "Insolvency Proceeding")
     direct all matters relating to such Insolvency Proceeding, including
     without limitation, (A) all matters relating to any claim in connection
     with an Insolvency Proceeding seeking the avoidance as a preferential
     transfer of any payment made with respect to the Class A Notes (a
     "Preference Claim"), (B) the direction of any appeal of any order relating
     to any Preference Claim at the expense of Financial Security but subject to
     reimbursement as provided in the Insurance Agreement and (C) the posting of
     any surety, supersedeas or performance bond pending any such appeal. In
     addition, the Trust Collateral Agent hereby agrees that Financial Security
     shall be subrogated to, and the Trust Collateral Agent on its behalf and on
     behalf of each Class A Noteholder, hereby delegates and assigns, to the
     fullest extent permitted by law, the rights of the Trust Collateral Agent
     and each Class A Noteholder in the conduct of any Insolvency Proceeding,
     including, without limitation, all rights of any party to an adversary
     proceeding or action with respect to any court order issued in connection
     with any such Insolvency Proceeding.

         (vii) Payment should be made by wire transfer directed to [Specify
     Account].

     Unless the context otherwise requires, capitalized terms used in this
Notice of Claim and Certificate and not defined herein shall have the meanings
provided in the Policy.

                                      A-2
<PAGE>

     IN WITNESS WHEREOF, the Trust Collateral Agent has executed and delivered
this Notice of Claim and Certificate as of the ____ day of ________________,
_____.

                                     WELLS FARGO BANK, NATIONAL ASSOCIATION
                                       not in its individual capacity but solely
                                       as Trust Collateral Agent

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

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

For Financial Security or Fiscal Agent Use Only

Wire transfer sent on____________________________ by ___________________________

Confirmation Number _____________________________

                                      A-3

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