Document:

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                                                                    Exhibit 10.2

                            Administration Agreement
                            dated as of July 1, 2001

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                    CATERPILLAR FINANCIAL ASSET TRUST 2001-A

                       Class A-1 3.74% Asset Backed Notes

                                       and

                       Class A-2 4.11% Asset Backed Notes

                       Class A-3 4.85% Asset Backed Notes

                        Class B 5.72% Asset Backed Notes

                            ADMINISTRATION AGREEMENT

                            Dated as of July 1, 2001

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

                   CATERPILLAR FINANCIAL SERVICES CORPORATION

                                  Administrator

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                              PAGE
<S>                                                                                           <C>
1.   DUTIES OF ADMINISTRATOR.............................................................       2

2.   RECORDS.............................................................................       7

3.   COMPENSATION........................................................................       7

4.   ADDITIONAL INFORMATION TO BE FURNISHED TO ISSUER....................................       7

5.   INDEPENDENCE OF ADMINISTRATOR.......................................................       7

6.   NO JOINT VENTURE....................................................................       8

7.   OTHER ACTIVITIES OF ADMINISTRATOR...................................................       8

8.   TERM OF AGREEMENT; RESIGNATION AND REMOVAL OF ADMINISTRATOR.........................       8

9.   ACTION UPON TERMINATION, RESIGNATION OR REMOVAL.....................................       9

10.  NOTICES.............................................................................       9

11.  AMENDMENTS.........................................................................       10

12.  SUCCESSORS AND ASSIGNS.............................................................       10

13.  GOVERNING LAW......................................................................       11

14.  HEADINGS...........................................................................       11

15.  COUNTERPARTS.......................................................................       11

16.  SEVERABILITY.......................................................................       11

17.  NOT APPLICABLE TO CATERPILLAR FINANCIAL SERVICES CORPORATION IN OTHER
     CAPACITIES.........................................................................       11

18.  LIMITATION OF LIABILITY OF OWNER TRUSTEE AND TRUSTEE...............................       11

19.  THIRD-PARTY BENEFICIARY............................................................       11

20.  SUCCESSOR SERVICER AND ADMINISTRATOR...............................................       11

21.  NONPETITION COVENANTS..............................................................       12
</TABLE>

EXHIBIT A - Form of Power of Attorney

                                      -i-
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       ADMINISTRATION AGREEMENT dated as of July 1, 2001, among CATERPILLAR
FINANCIAL ASSET TRUST 2001-A, a Delaware business trust (the "Issuer"),
CATERPILLAR FINANCIAL SERVICES CORPORATION, a Delaware corporation, as
administrator (the "Administrator"), CATERPILLAR FINANCIAL FUNDING CORPORATION,
a Nevada corporation (the "Seller"), and BANK ONE, NATIONAL ASSOCIATION, a
national banking association, not in its individual capacity but solely as
Indenture Trustee (the "Indenture Trustee").

                              W I T N E S S E T H :

       WHEREAS the Issuer is issuing the Class A-1 3.74% Asset Backed Notes (the
"A-1 Notes"), the Class A-2 4.11% Asset Backed Notes (the "Class A-2 Notes"),
the Class A-3 4.85% Asset Backed Notes (the "A-3 Notes") and the Class B 5.72%
Asset Backed Notes (the "Class B Notes"; together with the A-1 Notes, A-2 Notes
and the Class A-3 Notes, the "Notes") pursuant to the Indenture dated as of July
1, 2001 (as amended, modified or supplemented from time to time in accordance
with the provisions thereof, the "Indenture"), between the Issuer and the
Indenture Trustee.

       WHEREAS the Issuer has entered into certain agreements in connection with
the issuance of the Notes and of certain beneficial ownership interests of the
Issuer, including (i) a Sale and Servicing Agreement dated as of July 1, 2001
(the "Sale and Servicing Agreement") (capitalized terms used herein and not
defined herein shall have the meanings assigned such terms in the Sales and
Servicing Agreement, or if not defined therein, in the Indenture) among the
Issuer, Caterpillar Financial Services Corporation ("CFSC"), as servicer, and
the Seller, (ii) a Depository Agreement dated July 24, 2001 (the "Depository
Agreement") among the Issuer, the Indenture Trustee and The Depository Trust
Company, (iii) the Indenture, and (iv) the Custodial Agreement dated as of July
1, 2001 (the "Custodial Agreement") among CFSC, the Seller, the Issuer, the
Indenture Trustee and Bank One, National Association, as custodian (the
"Custodian") (the Sale and Servicing Agreement, the Depository Agreement, the
Custodial Agreement and the Indenture being hereinafter referred to collectively
as the "Related Agreements");

       WHEREAS pursuant to the Related Agreements, the Issuer and the Owner
Trustee are required to perform certain duties in connection with (a) the Notes
and the collateral therefor pledged pursuant to the Indenture (the "Collateral")
and (b) the beneficial ownership interests in the Issuer (the holders of such
interests being referred to herein as the "Owners");

       WHEREAS the Issuer and the Owner Trustee desire to have the Administrator
perform certain of the duties of the Issuer and the Owner Trustee referred to in
the preceding clause, and to provide such additional services consistent with
the terms of this Agreement and the Related Agreements as the Issuer and the
Owner Trustee may from time to time request;

       WHEREAS the Administrator has the capacity to provide the services
required hereby and is willing to perform such services for the Issuer and the
Owner Trustee on the terms set forth herein;

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

       1. Duties of Administrator. (a) Duties with Respect to the Related
Agreements. (i) The Administrator agrees to perform all its duties as
Administrator and the duties of the Issuer and the Owner Trustee under the
Depository Agreement. In addition, the Administrator shall consult with the
Owner Trustee regarding the duties of the Issuer and the Owner Trustee under the
Related Agreements. The Administrator shall monitor the performance of the
Issuer and shall advise the Owner Trustee when action is necessary to comply
with the Issuer's or the Owner Trustee's duties under the Related Agreements.
The Administrator shall prepare for execution by the Issuer or the Owner Trustee
or shall cause the preparation by other appropriate persons of all such
documents, reports, filings, instruments, certificates and opinions as it shall
be the duty of the Issuer or the Owner Trustee to prepare, file or deliver
pursuant to any Related Agreement. In furtherance of the foregoing, the
Administrator shall take all appropriate action that it is the duty of the
Issuer or the Owner Trustee to take pursuant to the Indenture including, without
limitation, such of the foregoing as are required with respect to the following
matters under the Indenture (references are to sections of the Indenture):

                     (A) the duty to cause the Note Register to be kept and to
       give the Indenture Trustee notice of any appointment of a new Note
       Registrar and the location, or change in location, of the Note Register
       (Section 2.04);

                     (B) the notification of Noteholders of the final principal
       payment on their Notes (Section 2.07(b));

                     (C) the fixing or causing to be fixed of any specified
       record date and the notification of the Indenture Trustee and Noteholders
       with respect to special payment dates, if any (Section 2.07(c));

                     (D) the preparation of or obtaining of the documents and
       instruments required for authentication of the Notes, if any, and
       delivery of the same to the Indenture Trustee (Section 2.02);

                     (E) the preparation, obtaining or filing of the
       instruments, opinions and certificates and other documents required for
       the release of collateral (Section 2.09);

                     (F) the duty to cause newly appointed Paying Agents, if
       any, to deliver to the Indenture Trustee the instrument specified in the
       Indenture regarding funds held in trust (Section 3.03);

                     (G) the direction to Paying Agents to pay to the Indenture
       Trustee all sums held in trust by such Paying Agents (Section 3.03);

                     (H) the obtaining and preservation of the Issuer's
       qualification to do business in each jurisdiction in which such
       qualification is or shall be necessary to protect the validity and
       enforceability of the Indenture, the Notes, the Collateral and each other
       instrument and agreement included in the Trust Estate;

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                     (I) the preparation of all supplements, amendments,
       financing statements, continuation statements, if any, instruments of
       further assurance and other instruments, in accordance with Section 3.05
       of the Indenture, necessary to protect the Trust Estate (Section 3.05);

                     (J) the obtaining of the Opinion of Counsel on the Closing
       Date and the annual delivery of Opinions of Counsel, in accordance with
       Section 3.06 of the Indenture, as to the Trust Estate, and the annual
       delivery of the Officer's Certificate and certain other statements, in
       accordance with Section 3.09 of the Indenture, as to compliance with the
       Indenture (Sections 3.06 and 3.09);

                     (K) the identification to the Indenture Trustee in an
       Officer's Certificate of a Person with whom the Issuer has contracted to
       perform its duties under the Indenture (Section 3.07(b));

                     (L) the notification of the Indenture Trustee and the
       Rating Agencies of a Servicer Default pursuant to the Sale and Servicing
       Agreement and, if such Servicer Default arises from the failure of the
       Servicer to perform any of its duties under the Sale and Servicing
       Agreement, the taking of all reasonable steps available to remedy such
       failure (Section 3.07(d));

                     (M) the preparation and obtaining of documents and
       instruments required for the release of the Issuer from its obligation
       under the Indenture (Section 3.11(b));

                     (N) the delivery of notice to the Indenture Trustee of each
       Event of Default and each default by the Servicer or Seller under the
       Sale and Servicing Agreement (Section 3.19);

                     (O) the monitoring of the Issuer's obligations as to the
       satisfaction and discharge of the Indenture and the preparation of an
       Officer's Certificate and the obtaining of the Opinion of Counsel and the
       Independent Certificate relating thereto (Section 4.01);

                     (P) the compliance with any written directive of the
       Indenture Trustee with respect to the sale of the Trust Estate in a
       commercially reasonable manner if an Event of Default shall have occurred
       and be continuing (Section 5.04);

                     (Q) the preparation and delivery of notice to Noteholders
       of the removal of the Indenture Trustee and the appointment of a
       successor Indenture Trustee (Section 6.08);

                     (R) the preparation of any written instruments required to
       confirm more fully the authority of any co-trustee or separate trustee
       and any written instruments necessary in connection with the resignation
       or removal of any co-trustee or separate trustee (Sections 6.08 and
       6.10);

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                     (S) the furnishing of the Indenture Trustee with the names
       and addresses of Noteholders during any period when the Indenture Trustee
       is not the Note Registrar (Section 7.01);

                     (T) the preparation and, after execution by the Issuer, the
       filing with the Commission, any applicable state agencies and the
       Indenture Trustee of documents required to be filed on a periodic basis
       with, and summaries thereof as may be required by rules and regulations
       prescribed by, the Commission and any applicable state agencies and the
       transmission of such summaries, as necessary, to the Noteholders (Section
       7.03);

                     (U) the opening of one or more accounts in the Trust's
       name, the preparation of Issuer Orders, Officers' Certificates and
       Opinions of Counsel and all other actions necessary with respect to
       investment and reinvestment of funds in the Trust Accounts (Sections 8.02
       and 8.03);

                     (V) the preparation of an Issuer Request and Officer's
       Certificate and the obtaining of an Opinion of Counsel and Independent
       Certificates, if necessary, for the release of the Trust Estate as
       defined in the Indenture (Sections 8.04 and 8.05);

                     (W) the preparation of Issuer Orders and the obtaining of
       Opinions of Counsel with respect to the execution of supplemental
       indentures and the mailing to the Noteholders of notices with respect to
       such supplemental indentures (Sections 9.01, 9.02 and 9.03);

                     (X) the execution of new Notes conforming to any
       supplemental indenture (Section 9.06);

                     (Y) the notification of Noteholders of redemption of the
       Notes (Section 10.02);

                     (Z) the preparation of all Officers' Certificates, Opinions
       of Counsel and Independent Certificates with respect to any requests by
       the Issuer to the Indenture Trustee to take any action under the
       Indenture (Section 11.01(a));

                     (AA) the preparation and delivery of Officers' Certificates
       and the obtaining of Independent Certificates, if necessary, for the
       release of property from the lien of the Indenture (Section 11.01(b));

                     (BB) the notification of the Rating Agencies, upon the
       failure of the Indenture Trustee to give such notification, of the
       information required pursuant to Section 11.04 of the Indenture (Section
       11.04);

                     (CC) the preparation and delivery to Noteholders and the
       Indenture Trustee of any agreements with respect to alternate payment and
       notice provisions (Section 11.06);

                     (DD) the recording of the Indenture, if applicable (Section
       11.15); and

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                     (EE) causing the Servicer to comply with Sections 4.09,
       4.10, 4.11 and 5.06 of the Sale and Servicing Agreement.

              (ii) The Administrator will:

                     (A) pay the Indenture Trustee from time to time reasonable
       compensation for all services rendered by the Indenture Trustee under the
       Indenture (which compensation shall not be limited by any provision of
       law in regard to the compensation of a trustee of an express trust);

                     (B) except as otherwise expressly provided in the
       Indenture, reimburse the Indenture Trustee upon its request for all
       reasonable expenses, disbursements and advances incurred or made by the
       Indenture Trustee in accordance with any provision of the Indenture
       (including the reasonable compensation, expenses and disbursements of its
       agents and either in-house counsel or outside counsel, but not both),
       except any such expense, disbursement or advance as may be attributable
       to its negligence or bad faith;

                     (C) indemnify the Indenture Trustee and its agents for, and
       to hold them harmless against, any losses, liability or expense incurred
       without negligence or bad faith on their part, arising out of or in
       connection with the acceptance or administration of the transactions
       contemplated by the Indenture, including the reasonable costs and
       expenses of defending themselves against any claim or liability in
       connection with the exercise or performance of any of their powers or
       duties under the Indenture; and

                     (D) indemnify the Owner Trustee and its agents for, and to
       hold them harmless against, any losses, liability or expense incurred
       without negligence or bad faith on their part, arising out of or in
       connection with the acceptance or administration of the transactions
       contemplated by the Trust Agreement, including the reasonable costs and
       expenses of defending themselves against any claim or liability in
       connection with the exercise or performance of any of their powers or
       duties under the Trust Agreement.

              (b) Additional Duties. (i) In addition to the duties of the
Administrator set forth above, the Administrator shall perform such calculations
and shall prepare for execution by the Issuer or the Owner Trustee or shall
cause the preparation by other appropriate persons of all such documents,
reports, filings, instruments, certificates and opinions as it shall be the duty
of the Issuer or the Owner Trustee to prepare, file or deliver pursuant to the
Related Agreements, and at the request of the Owner Trustee shall take all
appropriate action that it is the duty of the Issuer or the Owner Trustee to
take pursuant to the Related Agreements. Subject to Section 5 of this Agreement,
and in accordance with the directions of the Owner Trustee, the Administrator
shall administer, perform or supervise the performance of such other activities
in connection with the Collateral (including the Related Agreements) as are not
covered by any of the foregoing provisions and as are expressly requested by the
Owner Trustee and are reasonably within the capability of the Administrator.

                     (ii) Notwithstanding anything in this Agreement or the
Related Agreements to the contrary, the Administrator shall be responsible for
promptly notifying the Owner Trustee in the event that any withholding tax is
imposed on the Trust's payments (or

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allocations of income) to the "Owner" as contemplated in Section 5.02(c) of the
Trust Agreement. Any such notice shall specify the amount of any withholding tax
required to be withheld by the Owner Trustee pursuant to such provision.

                     (iii) Notwithstanding anything in this Agreement or the
Related Agreements to the contrary, the Administrator shall be responsible for
performance of the duties of the Owner Trustee set forth in Section 5.05 of the
Trust Agreement with respect to, among other things, accounting and reports to
the Certificateholder.

                     (iv) The Administrator may satisfy its obligations with
respect to clauses (ii) and (iii) above by retaining, at the expense of the
Administrator, a firm of independent public accountants (the "Accountants")
acceptable to the Owner Trustee which shall perform the obligations of the
Administrator thereunder. In connection with paragraph (ii) above, the
Accountants will provide prior to August 27, 2001 a letter in form and substance
satisfactory to the Owner Trustee as to whether any tax withholding is then
required and, if required, the procedures to be followed with respect thereto to
comply with the requirements of the Code. The Accountants shall be required to
update the letter in each instance that any additional tax withholding is
subsequently required or any previously required tax withholding shall no longer
be required.

                     (v) The Administrator shall perform the duties of the
Administrator specified in Section 10.02 of the Trust Agreement required to be
performed in connection with the resignation or removal of the Owner Trustee,
and any other duties expressly required to be performed by the Administrator
under the Trust Agreement.

                     (vi) In carrying out the foregoing duties or any of its
other obligations under this Agreement, the Administrator may enter into
transactions with or otherwise deal with any of its Affiliates; provided,
however, that the terms of any such transactions or dealings shall be in
accordance with any directions received from the Issuer and shall be, in the
Administrator's opinion, no less favorable to the Issuer than would be available
from unaffiliated parties.

                     (vii) It is the intention of the parties hereto that the
Administrator shall, and the Administrator hereby agrees to, execute on behalf
of the Issuer or the Owner Trustee all such documents, reports, filings,
instruments, certificates and opinions as it shall be the duty of the Issuer or
the Owner Trustee to prepare, file or deliver pursuant to the Basic Documents.
In furtherance thereof, the Owner Trustee shall, on behalf of itself and of the
Issuer, execute and deliver to the Administrator, and to each successor
Administrator appointed pursuant to the terms hereof, one or more powers of
attorney substantially in the form of Exhibit A hereto, appointing the
Administrator the attorney-in-fact of the Owner Trustee and the Issuer for the
purpose of executing on behalf of the Owner Trustee and the Issuer all such
documents, reports, filings, instruments, certificates and opinions.

              (c) Non-Ministerial Matters. (i) With respect to matters that in
the reasonable judgment of the Administrator are non-ministerial, the
Administrator shall not take any action unless within a reasonable time before
the taking of such action, the Administrator shall have notified the Owner
Trustee of the proposed action and the Owner Trustee shall not

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have withheld consent or provided an alternative direction. For the purpose of
the preceding sentence, "non-ministerial matters" shall include, without
limitation:

                     (A) the amendment of or any supplement to the Indenture;

                     (B) the initiation of any claim or lawsuit by the Issuer
       and the compromise of any action, claim or lawsuit brought by or against
       the Issuer (other than in connection with the collection of the
       Receivables);

                     (C) the amendment, change or modification of the Related
       Agreements;

                     (D) the appointment of successor Note Registrars, successor
       Paying Agents and successor Trustees pursuant to the Indenture or the
       appointment of successor Administrators or successor Servicers, or the
       consent to the assignment by the Note Registrar, Paying Agent or Trustee
       of its obligations under the Indenture; and

                     (E) the removal of the Indenture Trustee.

                     (ii) Notwithstanding anything to the contrary in this
Agreement, the Administrator shall not be obligated to, and shall not, (x) make
any payments to the Noteholders or the Certificateholder under the Related
Agreements, (y) sell the Trust Estate pursuant to Section 5.04 of the Indenture
or (z) take any other action that the Issuer directs the Administrator not to
take on its behalf.

       2. Records. The Administrator shall maintain appropriate books of account
and records relating to services performed hereunder, which books of account and
records shall be accessible for inspection by the Issuer, the Owner Trustee, the
Indenture Trustee and the Seller at any time during normal business hours.

       3. Compensation. As compensation for the performance of the
Administrator's obligations under this Agreement, the Administrator shall be
entitled to $500 per month which shall be payable in accordance with Section
5.04 of the Sale and Servicing Agreement. The Seller shall also reimburse the
Administrator for any of its liabilities and expenses related to its performance
hereunder or under any Related Document (including without limitation those
expenses set forth in Section 1(a)(ii) of this Agreement).

       4. Additional Information To Be Furnished to Issuer. The Administrator
shall furnish to the Issuer from time to time such additional information
regarding the Collateral as the Issuer shall reasonably request.

       5. Independence of Administrator. For all purposes of this Agreement, the
Administrator shall be an independent contractor and shall not be subject to the
supervision of the Issuer or the Owner Trustee with respect to the manner in
which it accomplishes the performance of its obligations hereunder. Unless
expressly authorized by the Issuer, the Administrator shall have no authority to
act for or represent the Issuer or the Owner Trustee in any way and shall not
otherwise be deemed an agent of the Issuer or the Owner Trustee.

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       6. No Joint Venture. Nothing contained in this Agreement shall (i)
constitute the Administrator and either of the Issuer or the Owner Trustee as
members of any partnership, joint venture, association, syndicate,
unincorporated business or other separate entity, (ii) be construed to impose
any liability as such on any of them or (iii) be deemed to confer on any of them
any express, implied or apparent authority to incur any obligation or liability
on behalf of the others.

       7. Other Activities of Administrator. Nothing herein shall prevent the
Administrator or its affiliates from engaging in other businesses or, in its
sole discretion, from acting in a similar capacity as an administrator for any
other person or entity even though such person or entity may engage in business
activities similar to those of the Issuer, the Owner Trustee or the Indenture
Trustee.

       8. Term of Agreement; Resignation and Removal of Administrator. (a) This
Agreement shall continue in force until the dissolution of the Issuer, upon
which event this Agreement shall automatically terminate.

              (b) Subject to Section 8(e) and (f), the Administrator may resign
its duties hereunder by providing the Issuer with at least 60 days prior written
notice.

              (c) Subject to Section 8(e) and (f), the Issuer may remove the
Administrator without cause by providing the Administrator with at least 60 days
prior written notice.

              (d) Subject to Section 8(e) and (f), at the sole option of the
Issuer, the Administrator may be removed immediately upon written notice of
termination from the Issuer to the Administrator if any of the following events
shall occur:

                     (i) the Administrator shall default in the performance of
any of its duties under this Agreement and, after notice of such default, shall
not cure such default within ten days (or, if such default cannot be cured in
such time, shall not give within ten days such assurance of cure as shall be
reasonably satisfactory to the Issuer);

                     (ii) a court having jurisdiction in the premises shall
enter a decree or order for relief, and such decree or order shall not have been
vacated within 60 days, in respect of the Administrator in any involuntary case
under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect or appoint a receiver, liquidator, assignee, custodian,
trustee, sequestrator or similar official for the Administrator or any
substantial part of its property or order the winding-up or liquidation of its
affairs; or

                     (iii) the Administrator shall commence a voluntary case
under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, shall consent to the entry of an order for relief in an
involuntary case under any such law, or shall consent to the appointment of a
receiver, liquidator, assignee, trustee, custodian, sequestrator or similar
official for the Administrator or any substantial part of its property, shall
consent to the taking of possession by any such official of any substantial part
of its property, shall make any general assignment for the benefit of creditors
or shall fail generally to pay its debts as they become due.

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       The Administrator agrees that if any of the events specified in clause
(ii) or (iii) of this Section shall occur, it shall give written notice thereof
to the Issuer and the Indenture Trustee within seven days after the happening of
such event.

              (e) No resignation or removal of the Administrator pursuant to
this Section shall be effective until (i) a successor Administrator shall have
been appointed by the Issuer and (ii) such successor Administrator shall have
agreed in writing to be bound by the terms of this Agreement in the same manner
as the Administrator is bound hereunder.

              (f) The appointment of any successor Administrator shall be
effective only after satisfaction of the Rating Agency Condition with respect to
the proposed appointment.

       9. Action upon Termination, Resignation or Removal. Promptly upon the
effective date of termination of this Agreement pursuant to Section 8(a) or the
resignation or removal of the Administrator pursuant to Section 8(b) or (c),
respectively, the Administrator shall be entitled to be paid all fees and
reimbursable expenses accruing to it to the date of such termination,
resignation or removal. The Administrator shall forthwith upon such termination
pursuant to Section 8(a) deliver to the Issuer all property and documents of or
relating to the Collateral then in the custody of the Administrator. In the
event of the resignation or removal of the Administrator pursuant to Section
8(b) or (c), respectively, the Administrator shall cooperate with the Issuer and
take all reasonable steps requested to assist the Issuer in making an orderly
transfer of the duties of the Administrator.

       10. Notices. Any notice, report or other communication given hereunder
shall be in writing and addressed as follows:

               (a)    if to the Issuer or the Owner Trustee, to

                      Caterpillar Financial Asset Trust 2001-A
                      Chase Manhattan Bank USA, National Association
                      c/o JP Morgan Chase
                      500 Stanton Christiana Road, OPS4
                      3rd Floor
                      Newark, Delaware 19713
                      Attention:  Institutional Trust Services

               (b)    if to the Administrator, to

                      Caterpillar Financial Services Corporation
                      2120 West End Avenue
                      Nashville, TN  37203-0001

               (c)    if to the Indenture Trustee, to

                      Bank One, National Association
                      1 Bank One Plaza, Suite IL1-0126
                      Chicago, Illinois 60670-0126

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               (d)    if to the Seller, to

                      Caterpillar Financial Funding Corporation
                      4040 S. Eastern Avenue
                      Suite 344
                      Las Vegas, Nevada  89119

or to such other address as any party shall have provided to the other parties
in writing. Any notice required to be in writing hereunder shall be deemed given
if such notice is mailed by certified mail, postage prepaid, or hand-delivered
to the address of such party as provided above, except that notices to the
Indenture Trustee are effective only upon receipt.

       11. Amendments. This Agreement may be amended from time to time by a
written amendment duly executed and delivered by the Issuer, the Administrator
and the Indenture Trustee, with the written consent of the Owner Trustee,
without the consent of the Noteholders and the 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 such amendment
will not, in the Opinion of Counsel, materially and adversely affect the
interest of any Noteholder or the Certificateholder or the federal tax
characterization of the Notes. This Agreement may also be amended by the Issuer,
the Administrator and the Indenture Trustee with the written consent of the
Owner Trustee and the holders of Notes evidencing a majority in the Outstanding
Amount of the Notes and the holder of the Certificate 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 Noteholders or the
Certificateholder; provided, however, that no such amendment may (i) increase or
reduce in any manner the amount of, or accelerate or delay the timing of,
collections of payments on Receivables or distributions that are required to be
made for the benefit of the Noteholders or the Certificateholder or (ii) reduce
the aforesaid percentage of the holders of Notes and the holder of the
Certificate which are required to consent to any such amendment, without the
consent of the holders of all the outstanding Notes and the Certificate.
Notwithstanding the foregoing, the Administrator may not amend this Agreement
without the permission of the Seller, which permission shall not be unreasonably
withheld.

       12. Successors and Assigns. This Agreement may not be assigned by the
Administrator unless such assignment is previously consented to in writing by
the Issuer and the Owner Trustee and subject to the satisfaction of the Rating
Agency Condition in respect thereof. An assignment with such consent and
satisfaction, if accepted by the assignee, shall bind the assignee hereunder in
the same manner as the Administrator is bound hereunder. Notwithstanding the
foregoing, this Agreement may be assigned by the Administrator without the
consent of the Issuer or the Owner Trustee to a corporation or other
organization that is a successor (by merger, consolidation or purchase of
assets) to the Administrator, provided that such successor organization executes
and delivers to the Issuer, the Owner Trustee and the Indenture Trustee an
agreement in which such corporation or other organization agrees to be bound
hereunder by the terms of said assignment in the same manner as the
Administrator is bound hereunder. Subject to the foregoing, this Agreement shall
bind any successors or assigns of the parties hereto.

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

       14. Headings. The section headings hereof have been inserted for
convenience of reference only and shall not be construed to affect the meaning,
construction or effect of this Agreement.

       15. Counterparts. This Agreement may be executed in counterparts, each of
which when so executed shall together constitute but one and the same agreement.

       16. Severability. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall 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.

       17. Not Applicable to Caterpillar Financial Services Corporation in Other
Capacities. Nothing in this Agreement shall affect any obligation Caterpillar
Financial Services Corporation may have in any other capacity.

       18. Limitation of Liability of Owner Trustee and Trustee. (a)
Notwithstanding anything contained herein to the contrary, this instrument has
been signed by Chase Manhattan Bank USA, National Association not in its
individual capacity but solely in its capacity as Owner Trustee of the Issuer
and in no event shall Chase Manhattan Bank USA, National Association in its
individual capacity or any beneficial owner of the Issuer have any liability for
the representations, warranties, covenants, agreements or other obligations of
the Issuer hereunder, as to all of which recourse shall be had solely to the
assets of the Issuer. For all purposes of this Agreement, in the performance of
any duties or obligations of the Issuer hereunder, the Owner Trustee shall be
subject to, and entitled to the benefits of, the terms and provisions of
Articles VI, VII and VIII of the Trust Agreement.

              (b) Notwithstanding anything contained herein to the contrary,
this Agreement has been signed by Bank One, National Association not in its
individual capacity but solely as Indenture Trustee and in no event shall Bank
One, National Association have any liability for the representations,
warranties, covenants, agreements or other obligations of the Issuer hereunder
or in any of the certificates, notices or agreements delivered pursuant hereto,
as to all of which recourse shall be had solely to the assets of the Issuer.

       19. Third-Party Beneficiary. The Owner Trustee is a third-party
beneficiary to this Agreement and is entitled to the rights and benefits
hereunder and may enforce the provisions hereof as if it were a party hereto.

       20. Successor Servicer and Administrator. The Administrator shall
undertake, as promptly as possible after the giving of notice of termination to
the Servicer of the Servicer's rights and powers pursuant to Section 8.02 of the
Sale and Servicing Agreement, to enforce the

                                       11
<PAGE>   15

provisions of Section 8.02 with respect to the appointment of a successor
Servicer. Such successor Servicer shall, upon compliance with the last sentence
of the first paragraph of Section 8.02 of the Sale and Servicing Agreement,
become the successor Administrator hereunder; provided, however, that if the
Indenture Trustee shall become such successor Administrator, the Indenture
Trustee shall not be required to perform any obligations or duties or conduct
any activities as successor Administrator that would be prohibited by law and
not within the banking and trust powers of the Indenture Trustee. In such event,
the Indenture Trustee shall appoint a sub-administrator to perform such
obligations and duties.

       21. Nonpetition Covenants. (a) Notwithstanding any prior termination of
this Agreement, the Seller, the Administrator, the Owner Trustee and the
Indenture Trustee shall not, prior to the date which is one year and one day
after the termination of this Agreement with respect to the Issuer, acquiesce,
petition or otherwise invoke or cause the Issuer to invoke the process of any
court or government authority for the purpose of commencing or sustaining a case
against the Issuer under any Federal or state bankruptcy, insolvency or similar
law or appointing a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of the Issuer or any substantial part of
its property, or ordering the winding up or liquidation of the affairs of the
Issuer.

              (b) Notwithstanding any prior termination of this Agreement, the
Issuer, the Administrator, the Owner Trustee and the Indenture Trustee shall
not, prior to the date which is one year and one day after the termination of
this Agreement with respect to the Seller, acquiesce, petition or otherwise
invoke or cause the Seller to invoke the process of any court or government
authority for the purpose of commencing or sustaining a case against the Seller
under any Federal or state bankruptcy, insolvency or similar law or appointing a
receiver, liquidator, assignee, trustee, custodian, sequestrator or other
similar official of the Seller or any substantial part of its property, or
ordering the winding up or liquidation of the affairs of the Seller.

                                       12
<PAGE>   16

       IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed and delivered as of the day and year first above written.

                             CATERPILLAR FINANCIAL ASSET
                               TRUST 2001-A

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

                             By: /s/ JOHN J. CASHIN
                                 -----------------------------------------------
                                 Name: John J. Cashin
                                 Title: Vice President

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

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

                             CATERPILLAR FINANCIAL SERVICES
                                CORPORATION, as Administrator

                             By: /s/ JAY P. GILLAN
                                 -----------------------------------------------
                                 Name: Jay P. Gillan
                                 Title: Vice President

                             CATERPILLAR FINANCIAL FUNDING
                               CORPORATION, as Seller

                             By: /s/ EDWARD J. SCOTT
                                 -----------------------------------------------
                                 Name: Edward J. Scott
                                 Title: Treasurer

<PAGE>   17

                                                                       EXHIBIT A
                                                     [Form of Power of Attorney]

                                POWER OF ATTORNEY

STATE OF ____________ )
                      )
COUNTY OF ___________ )

       KNOW ALL MEN BY THESE PRESENTS, that ______________________, a
____________________________, not in its individual capacity but solely as owner
trustee ("Owner Trustee") for the Caterpillar Financial Asset Trust 2001-A
("Trust"), does hereby make, constitute and appoint
____________________________, as Administrator under the Administration
Agreement (as defined below), and its agents and attorneys, as Attorneys-in-Fact
to execute on behalf of the Owner Trustee or the Trust all such documents,
reports, filings, instruments, certificates and opinions as it shall be the duty
of the Owner Trustee or the Trust to prepare, file or deliver pursuant to the
Related Documents (as defined in the Administration Agreement), including,
without limitation, to appear for and represent the Owner Trustee and the Trust
in connection with the preparation, filing and audit of federal, state and local
tax returns pertaining to the Trust, and with full power to perform any and all
acts associated with such returns and audits that the Owner Trustee could
perform, including without limitation, the right to distribute and receive
confidential information, defend and assert positions in response to audits,
initiate and defend litigation, and to execute waivers of restriction on
assessments of deficiencies, consents to the extension of any statutory or
regulatory time limit, and settlements. For the purpose of this Power of
Attorney, the term "Administration Agreement" means the Administration Agreement
dated as of July 1, 2001, among the Trust, Caterpillar Financial Services
Corporation, as Administrator and Servicer, and Bank One, National Association,
as Indenture Trustee, as such may be amended from time to time.

       All powers of attorney for this purpose heretofore filed or executed by
the Owner Trustee are hereby revoked.

       EXECUTED this [___] day of July, 2001.

                             CHASE MANHATTAN BANK USA, NATIONAL
                                ASSOCIATION, not in its individual capacity
                                but solely as Owner Trustee,

                             By:
                                 -----------------------------------------------
                                 Name:
                                 Title:<PAGE>   1

                                                                    Exhibit 10.3

                               Custodial Agreement
                            dated as of July 1, 2001

<PAGE>   2
================================================================================

                               CUSTODIAL AGREEMENT

                                      among

                   CATERPILLAR FINANCIAL SERVICES CORPORATION

                             Originator and Servicer

                    CATERPILLAR FINANCIAL FUNDING CORPORATION

                                     Seller

                    CATERPILLAR FINANCIAL ASSET TRUST 2001-A

                                     Issuer

                                       and

                         BANK ONE, NATIONAL ASSOCIATION

                         Indenture Trustee and Custodian

                            DATED AS OF JULY 1, 2001

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

<PAGE>   3
                               TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                           PAGE
                                                                                           ----
<S>     <C>       <C>                                                                      <C>
ARTICLE I         DEFINITIONS...............................................................2

        Section 1.1   Definitions...........................................................2

        Section 1.2.  Interpretation of the Agreement.......................................2

ARTICLE II        CUSTODIAL ARRANGEMENT.....................................................2

        Section 2.1.  Appointment as Custodian..............................................2

        Section 2.2.  Maintenance of Office.................................................2

ARTICLE III       CUSTODIAL ARRANGEMENT.....................................................3

        Section 3.1.  Transfer of Receivables; Delivery of Documents........................3

        Section 3.2.  Certification.........................................................4

        Section 3.3.  Release of Receivables Files..........................................4

        Section 3.4.  Purchase; Payment In Full.............................................5

        Section 3.5.  Other Duties of Custodian.............................................5

        Section 3.6.  Access to Records.....................................................5

        Section 3.7.  Instructions; Authority to Act........................................6

ARTICLE IV        OWNERSHIP AND TRANSFER OF RECEIVABLES.....................................6

        Section 4.1.  Transfer of Receivables...............................................6

        Section 4.2.  Substitution and Purchase of Receivables..............................6

        Section 4.3.  No Service Charge for Transfer of Receivables.........................7

        Section 4.4.  Defeasance............................................................7

ARTICLE V         CUSTODIAN.................................................................7

        Section 5.1.  Representations, Warranties and Covenants of Custodian................7

        Section 5.2.  Charges and Expenses..................................................8

        Section 5.3.  No Adverse Interests..................................................9

        Section 5.4.  Inspections...........................................................9

        Section 5.5.  Insurance.............................................................9

        Section 5.6.  Limitation of Liability...............................................9

        Section 5.7.  Indemnification.......................................................9

        Section 5.8.  Further Rights of Custodian..........................................10

</TABLE>

                                       i

<PAGE>   4
                               TABLE OF CONTENTS
                                  (CONTINUED)

<TABLE>
<CAPTION>

                                                                                           PAGE
                                                                                           ----
<S>     <C>       <C>                                                                     <C>
ARTICLE VI        MISCELLANEOUS PROVISIONS.................................................10

        Section 6.1.  Amendment............................................................10

        Section 6.2.  Governing Law........................................................10

        Section 6.3.  Notices..............................................................11

        Section 6.4.  Severability of Provisions...........................................11

        Section 6.5.  No Partnership.......................................................11

        Section 6.6.  Termination of Agreement.............................................11

        Section 6.7.  Counterparts.........................................................11

        Section 6.8.  Assignment...........................................................11

        Section 6.9.  Headings.............................................................11

        Section 6.10. Advice of Counsel....................................................12

        Section 6.11. No Petition..........................................................12

        Section 6.12. Resignation of Custodian.............................................12

        Section 6.13. Limitation of Liability of Indenture Trustee and Owner Trustee.......12

EXHIBIT A         CUSTODIAN CERTIFICATION.................................................A-1

EXHIBIT B         REQUEST FOR RELEASE OF DOCUMENTS........................................B-1

EXHIBIT C         TRANSFER CERTIFICATE....................................................C-1

</TABLE>

                                       ii

<PAGE>   5

                              CUSTODIAL AGREEMENT

        THIS CUSTODIAL AGREEMENT is made as of July 1, 2001, by and among
CATERPILLAR FINANCIAL SERVICES CORPORATION (the "Originator"), CATERPILLAR
FINANCIAL SERVICES CORPORATION, as Servicer (the "Servicer"), CATERPILLAR
FINANCIAL FUNDING CORPORATION (the "Seller"), CATERPILLAR FINANCIAL ASSET TRUST
2001-A (the "Trust"), BANK ONE, NATIONAL ASSOCIATION, as Indenture Trustee under
the Indenture (the "Indenture Trustee") and BANK ONE, NATIONAL ASSOCIATION, as
Custodian ("Custodian").

                                    RECITALS

        WHEREAS, before the Closing Date the Originator is the owner of the
Receivables.

        WHEREAS, pursuant to the Purchase Agreement, the Originator will sell
the Receivables to the Seller.

        WHEREAS, pursuant to the Sale and Servicing Agreement, the Seller will
sell the Receivables acquired pursuant to the Purchase Agreement to the Trust.

        WHEREAS, pursuant to the Indenture, the Trust will Grant to the
Indenture Trustee, as trustee for the benefit of the Noteholders (and to the
extent set forth in the Sale and Servicing Agreement, the Certificateholder),
all of the Trust's right, title and interest in, to and under the Receivables
and the other assets of the Trust.

        WHEREAS, during such time as the Originator, the Seller, the Trust or
the Indenture Trustee owns or has an interest in the Receivables, such Person or
Persons shall be referred to herein as the "Receivables Holder", and the
Custodian shall hold all Receivables for the benefit of the Originator, the
Seller, the Trust and the Indenture Trustee (for the benefit of the Noteholders
and, to the extent set forth in the Sale and Servicing Agreement, the
Certificateholder) during such time as such Person is a Receivables Holder.

        WHEREAS, in connection with the foregoing, the parties hereto desire to
provide for the custody and management of the Receivables transferred pursuant
to the Purchase Agreement, the Sale and Servicing Agreement and the Indenture
(each, a "Transfer").

        WHEREAS, Custodian is a financial institution regulated by the
Comptroller of the Currency of the United States.

        WHEREAS, the Originator, the Seller, the Trust and the Indenture
Trustee, during such time as each such Person is a Receivables Holder, desire to
have the Custodian (i) hold the Receivables as custodian for each such party,
(ii) take possession of the Contracts and the Receivables Files related to the
Receivables, along with certain other documents specified in this Agreement, as
the custodian for, and bailee of, such Receivables Holder in accordance with the
terms and conditions of this Agreement, and (iii) retain possession of the
Contracts and Receivables Files and such other documents as custodian for and
bailee of the Indenture Trustee. Cus-

<PAGE>   6

todian is willing and able to perform the duties and obligations of a custodian
and bailee as set forth herein.

        WHEREAS, Servicer will act as servicer of the Receivables pursuant to
the Sale and Servicing Agreement.

        NOW, THEREFORE, in consideration of the premises and the mutual
agreements hereinafter set forth, the Originator, the Servicer, the Seller, the
Trust, the Indenture Trustee and Custodian hereby agree as follows:

                                    Article I

                                   DEFINITIONS

        Section 1.1. Definitions. Certain capitalized terms used in this
Agreement and not otherwise defined herein shall have the respective meanings
assigned them in Article I of the Sale and Servicing Agreement dated as of July
1, 2001 (the "Sale and Servicing Agreement") among the Trust, the Seller and the
Servicer or in Article I of the Indenture dated as of July 1, 2001 (the
"Indenture") between the Trust and the Indenture Trustee. All references in this
Agreement to Articles, Sections, Subsections and Exhibits are to the same
contained in or attached to this Agreement unless otherwise specified. All terms
defined in this Agreement shall have the defined meanings when used in any
certificate, notice or other document made or delivered pursuant hereto unless
otherwise defined therein.

        Section 1.2. Interpretation of the Agreement. In interpreting any
mistake or ambiguity contained herein, the parties hereto agree to resolve any
such mistakes or ambiguities in favor of the Indenture Trustee (for the benefit
of the Noteholders, and to the extent set forth in the Sale and Servicing
Agreement, for the benefit of the Certificateholder).

                                   Article II

                              CUSTODIAL ARRANGEMENT

        Section 2.1. Appointment as Custodian. Subject to the terms and
conditions hereof, the Seller, the Trust and the Indenture Trustee (for the
benefit of the Noteholders and, to the extent set forth in the Sale and
Servicing Agreement, the Certificateholder), as their interests may appear,
hereby appoint Bank One, National Association, and Bank One, National
Association hereby accepts such appointment, as Custodian to maintain custody of
the Receivables, the Contracts and the Receivables Files during such time as
each such Person is a Receivables Holder.

        Section 2.2. Maintenance of Office. The Custodian agrees to maintain
each Receivables File identified in Section 3.03 of the Sale and Servicing
Agreement and Section 2.04 of the Purchase Agreement at its office located at
4040 S. Eastern Avenue, Suite 344, Las Vegas, Nevada 89119, or at such of its
other offices in Nevada as Custodian shall designate from time to time after
giving the Originator, the Seller, the Trust, each of the Rating Agencies and
the Indenture Trustee prior written notice, which office shall be maintained
separate from the offices of the Originator, the Seller and the Servicer and
shall be at all times under the exclusive do-

                                       2

<PAGE>   7

minion of the Custodian. None of the Custodian's employees shall be employees of
the Originator, the Seller, the Servicer or any of the Servicer's Affiliates.

                                   Article III

                              CUSTODIAL ARRANGEMENT

        Section 3.1. Transfer of Receivables; Delivery of Documents. On or
before the Closing Date, the Originator shall deliver, or cause to be delivered,
to the Custodian, the Receivables Files referred to in Section 2.04 of the
Purchase Agreement and Section 3.03 of the Sale and Servicing Agreement,
including without limitation, the Original Contract evidencing each Receivable.
Until the Closing Date and the occurrence of the initial Transfer described
below, the Custodian shall hold the Receivables (including the Receivables
Files) as custodian and bailee for the Originator.

        On the Closing Date, the Originator shall deliver to the Custodian a
Transfer Certificate in the form attached hereto as Exhibit C (a "Transfer
Certificate") evidencing the Transfer by the Originator to the Seller of the
Receivables pursuant to the Purchase Agreement. Upon receipt of the Transfer
Certificate duly executed by the Originator, the Custodian shall acknowledge the
Transfer Certificate as provided thereon and shall issue to the Seller a
Custodian Certification (as defined below) (the "Seller's Custodian
Certification"), as described in Section 3.2 below.

        On the Closing Date, upon receipt of the Seller's Custodian
Certification, the Seller shall deliver to the Custodian a Transfer Certificate
evidencing the Transfer by the Seller to the Trust of the Receivables pursuant
to the Sale and Servicing Agreement, together with the Seller's Custodian
Certification. Upon receipt of the Transfer Certificate duly executed by the
Seller and the Seller's Custodian Certification, the Custodian shall acknowledge
the Transfer Certificate as provided thereon and shall issue to the Trust a
Custodian Certification (the "Trust's Custodian Certification"), as described in
Section 3.2 below, and shall cancel the Seller's Custodian Certification.

        On the Closing Date, upon receipt of the Trust's Custodian
Certification, the Trust shall deliver to the Custodian a Transfer Certificate
evidencing the Transfer by the Trust to the Indenture Trustee of the Receivables
pursuant to the Indenture, together with the Trust's Custodian Certification.
Upon receipt of the Transfer Certificate duly executed by the Trust and the
Trust's Custodian Certification, the Custodian shall acknowledge the Transfer
Certificate as provided thereon and shall issue to the Indenture Trustee a
Custodian Certification (the "Trustee's Custodian Certification"), as described
in Section 3.2 below, and shall cancel the Trust's Custodian Certification.

        Custodian hereby acknowledges receipt of the Purchase Agreement, the
Sale and Servicing Agreement and the Indenture. Custodian further acknowledges
that, on the Closing Date and pursuant to this Agreement, the Purchase
Agreement, the Sale and Servicing Agreement and the Indenture, Custodian will be
given possession of the Receivables Files relating to the Receivables
constituting a portion of the Collateral, each of which Receivables will be
described specifically on Schedule A to each of the Purchase Agreement, the Sale
and Servicing

                                       3

<PAGE>   8

Agreement and the Indenture, a copy of which will be delivered to Custodian
simultaneously with the delivery of the Receivables Files relating thereto. On
and after the Closing Date and the completion of the Transfers described above,
and so long as this Agreement shall remain in effect, Custodian shall hold the
Receivables Files now and hereafter, from time to time, in its sole custody and
control as custodian for and bailee of the Indenture Trustee, as trustee for the
benefit of the Noteholders and the Certificateholder (as their interests may
appear), unless and until released from the lien of the Indenture and otherwise
in accordance with the Sale and Servicing Agreement, in which event, Custodian
shall hold the Receivables and the Receivables Files as trustee and bailee for
the benefit of the applicable Receivables Holder.

        Section 3.2. Certification. Upon delivery to Custodian of the
Receivables Files, as specified in Section 3.1, Custodian shall review the same
on account of the Indenture Trustee in accordance with the terms of Section 3.05
of the Sale and Servicing Agreement and (subject to Section 4.1 hereof) shall
confirm to the Indenture Trustee that all the documents in the Receivables Files
required to be delivered under Section 3.1 (being the documents described in
Section 3.03 of the Sale and Servicing Agreement) have been delivered. Custodian
shall hold such documents on behalf of the Indenture Trustee pursuant to this
Agreement. Upon consummation of a Transfer in accordance with Article IV hereof,
Custodian shall, with respect to the Receivables transferred to the applicable
Receivables Holder in connection with the applicable Transfer, as described in
Section 3.1 hereof, number, execute and deliver to the applicable Receivables
Holder (with a copy to the Servicer) one or more certifications (each, a
"Custodian Certification") in the form attached hereto as Exhibit A. Upon
issuance of a Custodian Certification with respect to any Transfer, the
Custodian Certification relating to such Receivable previously delivered shall
be deemed and marked cancelled with respect to such Receivable.

        Section 3.3. Release of Receivables Files. From time to time and as
provided in the Sale and Servicing Agreement, Custodian is hereby authorized,
upon written request of Servicer (with the approval of the Indenture Trustee,
which approval shall not be unreasonably withheld) in the form annexed hereto as
Exhibit B, to release to the Servicer the Receivables File related to any
Receivable or the specific documents identified in such request to the Servicer.
All documents so released to the Servicer shall be held by it in trust for the
benefit of the Indenture Trustee (for the benefit of the Noteholders and, to the
extent set forth in the Indenture and the Sale and Servicing Agreement, the
Certificateholder). Servicer shall return the Receivables File, or such other
documents which have been released to Servicer, to Custodian when Servicer's
need therefor in connection with a foreclosure, modification, termination or
repossession no longer exists, unless the Receivable shall be satisfied in full
or liquidated, in which case, upon receipt of a certification to such effect
from Servicer to Custodian in the form annexed hereto as Exhibit B, the related
Receivables File shall be released by Custodian to Servicer, and Custodian shall
thereupon reflect any such liquidation on the related Receivable. Pursuant to
Section 4.07 of the Sale and Servicing Agreement, (i) the Servicer shall return
a Receivables File released to it within five (5) Business Days of such release
and (ii) if such Receivables File has not been returned to the Custodian within
such five (5) Business Day period, the Servicer shall repurchase the related
Receivable.

        Notwithstanding anything herein or in any other Basic Document to the
contrary, (i) the Servicer shall return any Receivables File released to it in
connection with a modification or extension of a Receivable to the Custodian on
the same day such file is released and (ii) the

                                       4
<PAGE>   9

Custodian shall not release a Receivables File to the Servicer in connection
with a modification or extension of a Receivable if, after giving effect to the
release of such Receivables File, the aggregate Principal Balance of all
Receivables having released Receivables Files in connection with modifications
and extensions exceeds $500,000.

        Section 3.4. Purchase; Payment In Full. Upon the purchase of any
Receivable pursuant to Section 3.02, 3.05 or 4.07 of the Sale and Servicing
Agreement or Section 6.02 of the Purchase Agreement, or upon the payment in full
of any Receivable, which shall be evidenced by Custodian's receipt of the
request for release in the form annexed hereto as Exhibit B, Custodian shall
promptly release the related Receivables File to Servicer and the security
interest in such Receivable and related Receivables File granted by the Trust to
the Indenture Trustee pursuant to the Indenture shall terminate without any
further action by the Custodian, the Originator, the Seller or the Indenture
Trustee.

        Section 3.5. Other Duties of Custodian. The Custodian shall have and
perform the other following powers and duties:

        (a) Safekeeping. To segregate the Receivables and Receivables Files from
    all other receivables, leases and installment sale contracts and similar
    records in its possession, to identify the Receivables Files as being held
    and to hold the Receivables Files for and on behalf of the Receivables
    Holders (which, on and after the Closing Date and after completion of the
    Transfers described in Section 3.1, shall be the Indenture Trustee for the
    benefit of the Noteholders and the Certificateholder, as their interests may
    appear), to maintain accurate records pertaining to each Contract and
    Receivable in the Receivables Files, to provide monthly a list of all
    Receivable Files held by it, together with a current exception report, and
    to provide such information as is necessary to enable the Servicer to
    deliver the reports and notifications required by Section 4.09 of the Sale
    and Servicing Agreement. Custodian will promptly report to the Indenture
    Trustee any failure on its part to hold the Receivables Files as herein
    provided and promptly take appropriate action to remedy any such failure.

        (b) Administration; Reports. In general, to attend to all
    non-discretionary details in connection with maintaining custody of the
    Receivables Files on behalf of the Receivables Holders as may be expressly
    provided herein or as may be required or customary for a custodian or
    bailee. In addition, Custodian shall assist the Indenture Trustee and the
    Servicer (at Servicer's cost) generally in the preparation of reports to
    holders or to regulatory bodies to the extent necessitated by Custodian's
    custody of the Receivables Files.

        Section 3.6. Access to Records. Custodian shall permit the Indenture
Trustee and its duly authorized agents, attorneys or auditors to inspect the
Receivables Files and the books and records maintained by the Custodian pursuant
hereto at such reasonable times as they may reasonably request, subject only to
compliance with the terms of the Sale and Servicing Agreement.

        Section 3.7. Instructions; Authority to Act. The Custodian shall be
deemed to have received proper instructions with respect to the Receivables
Files upon its receipt of written

                                       5

<PAGE>   10

instructions signed by a Responsible Officer of the Indenture Trustee and may
conclusively rely on such instructions. In addition, the Custodian may
conclusively rely upon any release request delivered to it in the form attached
as Exhibit B hereto duly executed by an authorized officer of the Servicer as
set forth on Annex 1 to Exhibit B and, if required by the terms thereof, by the
Indenture Trustee.

                                   ARTICLE IV

                      OWNERSHIP AND TRANSFER OF RECEIVABLES

        Section 4.1. Transfer of Receivables. The transfer of Receivables in
connection with any Transfer shall occur in the following manner:

            (i) Custodian shall, promptly upon receiving a Transfer Certificate
        relating to the transfer of Receivables pursuant to a Transfer:

                (a) determine whether each document in the Receivables File
            listed in Section 2.04 of the Purchase Agreement and Section 3.03 of
            the Sale and Servicing Agreement with respect to each Receivable
            listed on the Receivable Schedule has been delivered to Custodian,
            and whether Custodian is able to deliver a Custodian Certification;

                (b) promptly advise the applicable Receivables Holder, the
            Indenture Trustee, the Originator, the Seller and each of the Rating
            Agencies by telephone or by facsimile transmission if it determines
            that any document referred to in (a) above has not been so delivered
            and take no further action under this Section 4.1 until it
            determines that such documents have been so delivered; and

                (c) upon determining that such documents have been so delivered,
            Custodian shall issue and deliver to applicable Receivables Holder
            the Custodian Certification in accordance with Sections 3.1 and 3.2
            of this Agreement.

        Section 4.2. Substitution and Purchase of Receivables. The purchase of
Receivables pursuant to Section 6.02 of the Purchase Agreement and Section 3.02,
Section 3.05(b) or Section 4.07 of the Sale and Servicing Agreement shall occur
in the following manner:

            (i) On or before the date of such purchase, the Servicer shall send
        the Indenture Trustee notice, with a copy to Custodian, indicating the
        Receivables to be purchased and the aggregate purchase prices to be paid
        on such date.

            (ii) Upon receiving written confirmation in the form annexed hereto
        as Exhibit B, from the Seller and the Trust that they have received the
        applicable Purchase Amount, Custodian shall return to the applicable
        party (as identified to the Custodian by the Indenture Trustee)
        Receivables Files related to the Receivables purchased on such date.

                                       6

<PAGE>   11

        Section 4.3. No Service Charge for Transfer of Receivables. No service
charge shall be made for any transfer of Receivables, but Custodian may require
payment from the relevant transferor (other than the Indenture Trustee) of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer of Receivables.

        Section 4.4. Defeasance. When a Receivable is purchased by the Servicer,
the Seller or the Originator pursuant to the terms of the Purchase Agreement and
the Sale and Servicing Agreement, the applicable Receivables Holder's interest
in such Receivable and all Collateral with respect to such Receivable shall
terminate, such Receivable and related Collateral shall be conveyed to the
Servicer, the Seller or the Originator, as applicable, and the Receivables
Holder's rights, title and interest therein shall cease, and the Indenture
Trustee shall execute such instruments acknowledging termination and discharge
of such pledge and security interest as are required by applicable law.

                                    ARTICLE V

                                    CUSTODIAN

        Section 5.1. Representations, Warranties and Covenants of Custodian.
Custodian hereby represents and warrants to, and covenants with, the Originator,
the Seller, the Servicer, the Trust and the Indenture Trustee, that as of the
date of each Custodian Certification:

            (i) Custodian is duly organized, validly existing and in good
        standing under the laws of the United States;

            (ii) Custodian has the full power and authority to hold each
        Receivable, to hold title to the Receivables as custodian on behalf of
        the Receivables Holders, and to execute, deliver and perform, and to
        enter into and consummate all transactions contemplated by this
        Agreement, has duly authorized the execution, delivery and performance
        of this Agreement, has duly executed and delivered this Agreement, and
        this Agreement constitutes a legal, valid and binding obligation of
        Custodian, enforceable against it in accordance with its terms, except
        as enforcement of such terms may be limited by bankruptcy, insolvency or
        similar laws affecting the enforcement of creditors' rights generally
        and by the availability of equitable remedies;

            (iii) Neither the execution and delivery of this Agreement, the
        delivery of Receivables to Custodian, the issuance of the Custodian
        Certifications, the consummation of the transactions contemplated hereby
        or thereby, nor the fulfillment of or compliance with the terms and
        conditions of this Agreement will conflict with or result in a breach of
        any of the terms, conditions or provisions of Custodian's charter or
        bylaws or any agreement or instrument to which Custodian is now a party
        or by which it is bound, or constitute a default or result in an
        acceleration under any of the foregoing, or result in the violation of
        any law, rule, regulation, order, judgment or decree to which Custodian
        or its property is subject; except that no representation or warranty is
        made as to compliance with laws and regulations, other than those of the
        United States and the State of Illinois, re-

                                       7

<PAGE>   12

        lating to qualifications, licensure or regulation of custodians of
        receivables originated in states other than Illinois;

            (iv) Custodian does not believe, nor does it have any reason or
        cause to believe, that it cannot perform each and every covenant
        contained in this Agreement;

            (v) To Custodian's knowledge after due inquiry, there is no
        litigation pending or threatened, which if determined adversely to
        Custodian, would adversely affect the execution, delivery or
        enforceability of this Agreement, or any of the duties or obligations of
        Custodian thereunder, or which would have a material adverse effect on
        the financial condition of Custodian;

            (vi) No consent, approval, authorization or order of any court or
        governmental agency or body is required for the execution, delivery and
        performance by Custodian of or compliance by Custodian with this
        Agreement or the consummation of the transactions contemplated hereby or
        thereby; except that no representation or warranty is made as to
        consents, approvals, authorizations or orders of any courts or
        governmental agencies or bodies, other than those of the United States
        and the State of Illinois, relating to qualifications, licensure or
        regulation of custodians of receivables originated in states other than
        Illinois;

            (vii) Upon written request of the Indenture Trustee, Custodian shall
        take such steps as requested by the Indenture Trustee to protect or
        maintain any interest in any Receivable; and

            (viii) The Custodian has not been notified by any party other than
        the Originator, the Seller, the Trust and the Indenture Trustee that any
        such third party claims an interest in the Receivables or the
        Receivables Files nor is any such party requesting the Custodian to act
        as a bailee with respect to the Receivables or the Receivables Files.

        Custodian makes no representations or warranties as to the validity,
legality, sufficiency, enforceability, perfection, genuineness or prior recorded
status of any of the documents contained in each Receivables File or the
collectability, insurability, effectiveness or suitability of any Receivable.

        Section 5.2. Charges and Expenses. The Seller will pay all fees of
Custodian in connection with the performance of its duties hereunder in
accordance with written agreements to be entered into from time to time between
the parties hereto and Custodian, including fees and expenses of counsel
incurred by Custodian in the performance of its duties hereunder; provided,
however, that (i) Custodian shall in no event acquire any lien upon any
Receivable deposited under this Agreement or the Purchase Agreement or the Sale
and Servicing Agreement, or any claim against any Receivables Holder by reason
of the failure of the Seller to pay any of such charges or expenses and (ii) in
the event the Seller fails to pay the fees and expenses of Custodian as set
forth in such written agreements, Custodian shall have no obligation to take
actions or incur costs in connection with this Agreement unless the Seller or
another Person has made ade-

                                       8

<PAGE>   13

quate provision for payment of Custodian's fees and expenses. The Seller shall
indemnify the Custodian against payment of any documentary stamp taxes,
intangible taxes and other similar taxes, penalties and interest incurred in
connection with the Receivables and the transactions contemplated hereby.

        Section 5.3. No Adverse Interests. Custodian covenants and warrants to
the Originator, the Seller, the Servicer, the Trust and the Indenture Trustee,
that as of the date of each Custodian Certification: (i) it holds no adverse
interest, by way of security or otherwise, in any Receivable; and (ii) the
execution of this Agreement and the creation of the custodial relationship
hereunder does not create any interest, by way of security or otherwise, of
Custodian in or to any Receivable, other than Custodian's rights as custodian
hereunder.

        Section 5.4. Inspections. Upon reasonable prior written notice to
Custodian, the Servicer, the Seller, the Indenture Trustee, the Trust and such
Person's agents, accountants, attorneys and auditors will be permitted during
normal business hours to examine Custodian's documents, records and other papers
in possession of or under the control of Custodian relating to the Receivables.

        Section 5.5. Insurance. Custodian shall, at its own expense, maintain at
all times during the existence of this Agreement and keep in full force and
effect, (1) fidelity insurance, (2) theft of documents insurance, and (3)
forgery insurance subject to deductibles, all as is customary for amounts and
with insurance companies reasonably acceptable to the Servicer and the Indenture
Trustee. A certificate of the respective insurer as to each such policy or a
blanket policy for such coverage shall be furnished to the Servicer or the
Indenture Trustee, upon request, containing the insurer's statement or
endorsement that such insurance shall not terminate prior to receipt by such
party, by registered mail, of 10 days advance notice thereof.

        Section 5.6. Limitation of Liability. Custodian assumes no obligation,
and shall be subject to no liability, under this Agreement, except for its
negligence or willful misconduct in the performance of the obligations and
duties as are specifically set forth herein. Custodian shall not be liable for
any action or non-action by it in reliance on advice of counsel believed by it
in good faith to be competent to give such advice. Custodian may rely and shall
be protected in acting upon any written notice, order, request, direction or
other document believed by it to be genuine and to have been signed or presented
by the proper party or parties.

        Section 5.7. Indemnification. Servicer agrees to indemnify Custodian
against, and to hold it harmless from, any liabilities, and any related
out-of-pocket expenses, which it may incur in connection with this Agreement,
the Sale and Servicing Agreement, the Purchase Agreement or the Custodian
Certifications, other than any liabilities and expenses arising out of
Custodian's negligence or willful misconduct. The Custodian agrees to indemnify,
defend and hold harmless the Indenture Trustee against any liability to
Noteholders and/or Certificateholder arising out of the negligence or willful
misconduct of the Custodian (a) in the preparation or execution of any Custodian
Certification or (b) resulting in the loss of Receivables Files in the custody
of the Custodian. This indemnity shall include indemnification as to reasonable
attorneys' fees and costs, whether or not suit be brought, and including such
fees and costs on appeal. The Indenture Trustee shall give prompt written notice
to the Custodian of any claim forwhich in-

                                       9

<PAGE>   14

demnity is or may be sought and shall afford to the Custodian the opportunity to
defend such claim.

        Section 5.8. Further Rights of Custodian. (a) If the Custodian is at any
time uncertain of its obligations hereunder, the Custodian, upon prior written
notice to the Indenture Trustee, the Trust, the Originator, the Seller and the
Servicer, may refrain from taking any action with respect to such matter until
such uncertainty is removed. If conflicting demands are made on the Custodian
with respect to any matter, the Indenture Trustee's demand shall control, except
during the period prior to the issuance of the Trustee's Custodian Certification
pursuant to Section 3.1 hereof, when the applicable Receivables Holder's demand
shall control and the Custodian shall have the right to rely on such controlling
demand. The Custodian shall have the right in any such case to interplead any or
all of the documents contained in the Receivables Files in a court of competent
jurisdiction and, upon delivery thereof, shall have no further obligations
thereunder with respect to such documents.

        (b) The obligations of the Custodian shall be determined solely by the
    express provisions of this Agreement. No representation, warranty, covenant
    or obligation of the Custodian shall be implied with respect to this
    Agreement or the Custodian's service hereunder. Without limiting the
    generality of the foregoing statement, except as specifically required
    herein, the Custodian shall be under no obligation to inspect, review or
    examine the Receivables Files to determine that the contents thereof are
    complete, genuine, enforceable or appropriate for the represented purpose or
    that they have been actually recorded or filed in required offices or that
    they are other than what they purport to be on their face.

        (c) No provision of this Agreement shall require the Custodian to spend
    or risk its own funds or otherwise incur financial liability in performance
    of its duties under this Agreement unless, pursuant to Section 5.2 hereof,
    adequate provision has been made for the reimbursement of the Custodian's
    expenses hereunder.

                                   ARTICLE VI

                            MISCELLANEOUS PROVISIONS

        Section 6.1. Amendment. This Agreement may be amended from time to time
by Custodian, the Originator, the Seller, the Servicer, the Trust and the
Indenture Trustee by written agreement signed by such parties and upon
satisfaction of the Rating Agency Condition.

        Section 6.2. GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK GOVERNING AGREEMENTS MADE AND
TO BE PERFORMED THEREIN, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

        Section 6.3. Notices. All demands, notices and communication hereunder
shall be in writing and shall be deemed to have been duly given if personally
delivered at or mailed by overnight mail, certified mail or registered mail,
postage prepaid, to (i) in the case of the Servicer

                                       10

<PAGE>   15

and the Originator, Caterpillar Financial Services Corporation, 2120 West End
Avenue, Nashville, Tennessee 37203-0001, (ii) in the case of the Seller,
Caterpillar Financial Funding Corporation, 4040 S. Eastern Avenue, Suite 344,
Las Vegas, Nevada 89119, (iii) in the case of the Trust, c/o Chase Manhattan
Bank USA, National Association, as Owner Trustee, c/o JP Morgan Chase, 500
Stanton Christiana Road, OPS4, 3rd Floor, Newark, Delaware 19713, (iv) in the
case of the Indenture Trustee, Bank One, National Association, 1 Bank One Plaza,
Suite IL1-0126, Chicago, Illinois 60670-0126, (v) in the case of the Custodian,
Bank One, National Association, 1 Bank One Plaza, Suite IL1-0126, Chicago,
Illinois 60670-0126, and (vi) in the case of the Rating Agencies, at their
respective addresses set forth in the Sale and Servicing Agreement, and, in each
such case, at such other addresses as may hereafter be furnished to each party
hereto in writing.

        Section 6.4. Severability of Provisions. If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions or
terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other covenants, agreements, provisions or terms of this
Agreement.

        Section 6.5. No Partnership. Nothing herein contained shall be deemed or
construed to create a co-partnership or joint venture between Custodian and the
other parties hereto.

        Section 6.6. Termination of Agreement. This Agreement shall be
terminated upon termination of the Sale and Servicing Agreement or at the option
of Indenture Trustee on 30 days written notice to Custodian, the Servicer, the
Seller, the Trust and the Originator. Concurrently with, or as soon as
practicable after, the termination of this Agreement, Custodian shall redeliver
the Receivables Files to the Indenture Trustee at such place as the Indenture
Trustee may reasonably designate and until such redelivery, Custodian shall hold
such Receivables Files in its sole custody and control as custodian for and
bailee of the Indenture Trustee (for the benefit of the Noteholders and, to the
extent set forth in the Sale and Servicing Agreement, the Certificateholder). In
connection with the administration of this Agreement, Custodian and the
Indenture Trustee may agree from time to time upon the interpretation of the
provisions of this Agreement, as such interpretation may in their opinion be
consistent with the general tenor and purposes of this Agreement, any such
interpretation to be signed and annexed hereto.

        Section 6.7. Counterparts. This Agreement may be executed simultaneously
in any number of counterparts, each of which counterparts shall be deemed to be
an original, and such counterparts shall constitute but one and the same
instrument.

        Section 6.8. Assignment. No party hereto shall sell, pledge, assign or
otherwise transfer this Agreement without the prior written consent of the other
parties hereto and satisfaction of the Rating Agency Condition.

        Section 6.9. Headings. Section headings are for reference purposes only
and shall not be construed as a part of this Agreement.

                                       11

<PAGE>   16

        Section 6.10. Advice of Counsel. Custodian shall be entitled to rely and
act upon advice of counsel with respect to its performance hereunder as
Custodian and shall be without liability for any action reasonably taken
pursuant to such advice, provided that such action is not in violation of
application federal or state law. This paragraph shall not negate Custodian's
obligations under Section 5.7.

        Section 6.11. No Petition. Custodian, by entering into this Agreement,
hereby covenants and agrees that it will not at any time (whether or not this
Agreement has been terminated) institute against the Seller or the Trust, or
join in any institution against the Seller or the Trust 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 of the other Basic Documents.

        Section 6.12. Resignation of Custodian. (a) The Custodian may at any
time resign and terminate its obligations under this Agreement upon at least 90
days' prior written notice to the Servicer and the Indenture Trustee. The
Custodian may be removed at any time at the written request of the Indenture
Trustee. In the event of such resignation or removal, the Indenture Trustee
shall appoint a successor custodian acceptable to the Servicer, which
appointment must satisfy the Rating Agency Condition. If the Indenture Trustee
fails to appoint a successor custodian within 30 days, the Servicer shall
appoint a successor custodian. In no event shall the resignation of the
Custodian be effective until a successor custodian is duly appointed hereunder.
One original counterpart of such instrument of appointment shall be delivered to
each of the Servicer, the Custodian and the successor custodian. The Servicer
shall notify the Rating Agencies of any such resignation or removal and the
appointment of a successor custodian.

        (b) In the event of any resignation, the Custodian shall promptly
    transfer to the successor custodian (or to the Indenture Trustee if no
    successor custodian has been appointed) all of the Receivables (including
    the Receivables Files) in its possession under this Agreement and take such
    other action as may be requested by the Indenture Trustee to effect the
    transfer of the Custodian's Receivables Files to the successor custodian,
    which shall provide a written receipt for all such transferred documents and
    instruments. On completion of such transfer, the Custodian shall be relieved
    of all further responsibilities and obligations hereunder.

        Section 6.13. Limitation of Liability of Indenture Trustee and Owner
Trustee. (a) Notwithstanding anything contained herein to the contrary, in no
event shall Bank One, National Association in its individual capacity have any
liability for the representations, warranties, covenants, agreements or other
obligations of the Issuer hereunder or in any of the certificates, notices or
agreements delivered pursuant hereto, as to all of which recourse shall be had
solely to the assets of the Issuer.

        (b) Notwithstanding anything contained herein to the contrary, this
    instrument has been countersigned by Chase Manhattan Bank USA, National
    Association, not in its individual capacity but solely as Owner Trustee, and
    in no event shall Chase Manhattan Bank USA, National Association have any
    liability for the representations, warranties, covenants, agreements or
    other obligations of the Issuer hereunder or in any of the cer-

                                       12

<PAGE>   17

    tificates, notices or agreements delivered pursuant hereto, as to all of
    which recourse shall be had solely to the assets of the Issuer. For all
    purposes of this Agreement, in the performance of any duties or obligations
    of the Issuer hereunder, the Owner Trustee shall be subject to, and entitled
    to the benefits of, the terms and provisions of Article VI, VII and VIII of
    the Trust Agreement.

                                       13

<PAGE>   18

        IN WITNESS WHEREOF, the parties hereto have caused their names to be
signed hereto by their respective officers thereunto duly authorized, all as of
the day and year first above written.

                                               Originator

                                               CATERPILLAR FINANCIAL SERVICES
                                               CORPORATION,

                                               By: /s/ JAMES LEONARD
                                                  ------------------------------
                                                   Name:   James Leonard
                                                   Title:  Funding Manager

                                               Servicer

                                               CATERPILLAR FINANCIAL SERVICES
                                               CORPORATION, as Servicer

                                               By: /s/ JAMES LEONARD
                                                  ------------------------------
                                                   Name:   James Leonard
                                                   Title:  Funding Manager

                                               Seller

                                               CATERPILLAR FINANCIAL FUNDING
                                               CORPORATION

                                               By: /s/ PAUL J. GAETO
                                                  ------------------------------
                                                   Name:   Paul J. Gaeto
                                                   Title:  Secretary

<PAGE>   19

                                               CATERPILLAR FINANCIAL ASSET TRUST
                                               2001-A,

                                               CHASE MANHATTAN BANK USA,
                                               NATIONAL ASSOCIATION, not in its
                                               individual capacity but solely as
                                               Owner Trustee under the Trust
                                               Agreement

                                               By: /s/ JOHN J. CASHIN
                                                  ------------------------------
                                                   Name:   John J. Cashin
                                                   Title:  Vice President

                                               INDENTURE TRUSTEE

                                               BANK ONE, NATIONAL ASSOCIATION,
                                               as Indenture Trustee

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

                                               CUSTODIAN

                                               BANK ONE, NATIONAL ASSOCIATION,
                                               as Custodian

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

<PAGE>   20

                                    EXHIBIT A

                             CUSTODIAN CERTIFICATION

                                                          Certification No._____

                                     [DATE]

To:     [SELLER]
        [TRUST]
        [INDENTURE TRUSTEE]

                Re: Custodial Agreement, dated as of July 1, 2001 (the
                    "Custodial Agreement"), by and among Caterpillar Financial
                    Services Corporation (the "Originator"), Caterpillar
                    Financial Services Corporation, as Servicer (the
                    "Servicer"), Caterpillar Financial Funding Corporation (the
                    "Seller"), Caterpillar Financial Asset Trust 2001-A (the
                    "Trust"), Bank One, National Association, as Indenture
                    Trustee (the "Indenture Trustee") and Bank One, National
                    Association, as Custodian (the "Custodian")

Gentlemen:

        In accordance with the provisions of Section 3.2 of the above-referenced
Custodial Agreement, the undersigned, as Custodian, hereby certifies that it has
received all of the items listed in Section 3.1 of the Custodial Agreement with
respect to each Receivable identified on the Receivable Schedule (the
"Receivable Schedule") attached hereto dated as of July 1, 2001. The
undersigned, as Custodian, confirms that the Receivable number in each
Receivables File conforms to the respective Receivable number listed on the
Receivable Schedule. Capitalized terms used herein without definition shall have
the meanings ascribed to them in the Custodial Agreement.

        Custodian further certifies that as to each Receivable, Custodian holds
the Receivable in its name as custodian solely on behalf of and for the benefit
of [the Seller] [the Trust] [the Indenture Trustee], without written notice (a)
of any adverse claims, liens or encumbrances, (b) that any Receivable was
overdue or has been dishonored, (c) of evidence on the face of any Receivable or
other document in the Receivables File of any security interest therein, or (d)
of any defense against or claim to the Receivable by any other party.

        Custodian makes no representations or warranties as to the validity,
legality, sufficiency, enforceability, genuineness or prior recorded status of
any of the documents contained in each Receivables File or the collectability,
insurability, effectiveness or suitability of any Receivable.

        Custodian confirms that it holds each Receivable and the other documents
in the related Receivables File for the benefit of [the Seller][the Trust][the
Indenture Trustee].

        Upon repurchase of the Receivables to which this Custodian Certification
relates and payment of the applicable repurchase price, the Receivables to which
this Custodian Certifi-

                                      A-1

<PAGE>   21

cation relates shall be returned and released by Custodian to the Person paying
such repurchase price, and this Custodian Certification shall be and be deemed
to be canceled by Custodian and of no force and effect.

                                               --------------------------------,
                                               as Custodian

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

                                      A-2

<PAGE>   22

                                    EXHIBIT B

                        REQUEST FOR RELEASE OF DOCUMENTS

                                     [DATE]

To: [Custodian]

            Re: Custodial Agreement, dated as of July 1, 2001, by and among
                Caterpillar Financial Services Corporation (the "Originator"),
                Caterpillar Financial Services Corporation, as Servicer (the
                "Servicer"), Caterpillar Financial Funding Corporation (the
                "Seller"), Caterpillar Financial Asset Trust 2001-A (the
                "Trust"), Bank One, National Association, as Indenture Trustee
                (the "Indenture Trustee") and Bank One, National Association, as
                Custodian ("Custodian")

        In connection with the administration of the Receivables held by you as
Custodian under the above-referenced Custodial Agreement, [_________], on behalf
of [________], requests the release, and acknowledges receipt, of the following
for the Receivable described below, for the reason indicated:

A. Documents Released

  _____ 1a. Installment Sale Contract or Lease       b. Principal Balance ______

  _____ 2.  Other documents:

B. Obligor's Name, Address & Zip Code:

C. Receivable Number:

D. Reason for Requesting Documents (check one)

   _____ 1.      Receivable Paid in Full.

   _____ 2.      Receivable Repurchased Pursuant to the Purchase Agreement and/
                 or the Sale and Servicing Agreement.

   _____ 3.      Receivable Liquidated.

   _____ 4.      Receivable in Foreclosure or Repossession Proceedings.

   _____ 5.      Receivable to be modified or extended.

                    If box 1, 2 or 3 above is checked, and if all or part of
               Receivables File was previously released to us, please release to
               us our previous receipt on file

                                      B-1

<PAGE>   23

               with you, as well as any additional documents in your possession
               relating to the above specified Receivable. If box 1,2 or 3 is
               checked, evidence of receipt of payment by the Indenture Trustee
               is required prior to release.

                    If box 4 or 5 above is checked, upon our return of all of
               the above documents to you as Custodian, please acknowledge your
               receipt by signing in the space indicated below, and returning
               this form.

                    If box 5 above is checked, after giving effect to such
               release, the aggregate Principal Balance of all Receivables
               released in connection with modifications and extensions shall
               not exceed $500,000. In addition, upon return of the Receivables
               File, we are deemed to certify that the Receivables File as
               returned contains the related Receivable as so modified and
               extended.

                    If box 1, 2 or 3 above is checked, this request is only
               valid if also executed by the Seller and the Indenture Trustee.

               Documents released hereby in connection with a modification or
extension must be returned to the Custodian on the same Business Day of release.

                                               CATERPILLAR FINANCIAL SERVICES
                                               CORPORATION, as Servicer

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

                                               [                               ]
                                                -------------------------------

                                               By
                                                  ------------------------------
                                                  Name:
                                                  Title:
                                                  Date:
Documents returned to Custodian:

------------------------------------
as Custodian

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

                                      B-2

<PAGE>   24

                                     Annex 1

                         Authorized Officers of Servicer

                                      B-3

<PAGE>   25

                                    EXHIBIT C

                              Transfer Certificate

Bank One, National Association,                                           [DATE]
as Custodian under the
Custodial Agreement (defined below)
1 Bank One Plaza, Suite IL1-0126
Chicago, Illinois  60670-0126

            Re: Custodial Agreement, dated as of July 1, 2001 (the "Custodial
                Agreement"), by and among Caterpillar Financial Services
                Corporation (the "Originator"), Caterpillar Financial Services
                Corporation, as Servicer (the "Servicer"), Caterpillar Financial
                Funding Corporation (the "Seller"), Caterpillar Financial Asset
                Trust 2001-A (the "Trust"), Bank One, National Association, as
                Indenture Trustee (the "Indenture Trustee") and Bank One,
                National Association, as Custodian ("Custodian")

To whom it may concern:

        Pursuant to Section 3.1 of the above-referenced Custodial Agreement
(capitalized terms used herein but not otherwise defined shall have the same
meanings assigned to such terms in the Custodial Agreement), we hereby advise
you of the Transfer by the undersigned to [the Seller][the Trust][the Indenture
Trustee] of the Receivables identified on the Receivable Schedule[s] attached
[hereto] [to the [Seller's Custodian Certification] [Trust's Custodian
Certification] with respect to the undersigned which we are delivering to you
for cancellation]. You are instructed to hold such Receivables for [the Seller]
[the Trust] [the Indenture Trustee] and to deliver to [the Seller][the
Trust][the Indenture Trustee] a [Seller's] [Trust's] [Trustee's] Custodian
Certification acknowledging such transfer of these Receivables.

                                               Very truly yours,

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

The Custodian hereby acknowledges receipt of the forego-
ing instructions and agrees to hold such Receivables for
[the Seller] [the Trust] [the Indenture Trustee].

BANK ONE, NATIONAL ASSOCIATION

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

                                      C-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}]]