Document:

<PAGE>   1
                                                                     EXHIBIT 4.9

                                 TRUST AGREEMENT

                                      among

                     ONYX ACCEPTANCE FINANCIAL CORPORATION,
                                  as Depositor

                            BANKERS TRUST (DELAWARE),
                                as Owner Trustee

                                       and

                            THE CHASE MANHATTAN BANK,
                                 as Trust Agent

                             Dated as of May 1, 2001

                       ONYX ACCEPTANCE OWNER TRUST 2001-B

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
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ARTICLE I - DEFINITIONS............................................................1
   Section  1.01   Capitalized Terms...............................................1
   Section  1.02   Other Definitional Provisions...................................4
   Section  1.03   Usage of Terms..................................................4
   Section  1.04   Section References..............................................4
   Section  1.05   Accounting Terms................................................4

ARTICLE II - ORGANIZATION..........................................................4
   Section  2.01   Name............................................................4
   Section  2.02   Office..........................................................4
   Section  2.03   Purposes and Powers.............................................4
   Section  2.04   Appointment of Owner Trustee....................................5
   Section  2.05   Initial Capital Contribution of Owner Trust Estate..............5
   Section  2.06   Declaration of Trust............................................5
   Section  2.07   Title to Trust Property.........................................6
   Section  2.08   Situs of Trust..................................................6
   Section  2.09   Representations and Warranties of the Depositor.................6
   Section  2.10   Federal Income Tax Allocations..................................7

ARTICLE III - RESIDUAL INTEREST INSTRUMENTS AND TRANSFER OF INTERESTS..............8
   Section  3.01   Initial Ownership...............................................8
   Section  3.02   The Residual Interest Instruments and the Notes.................8
   Section  3.03   Execution, Authentication and Delivery of Residual Interest
                     Instruments and Notes.........................................8
   Section  3.04   Registration of Transfer and Exchange of Residual Interest
                     Instruments...................................................9
   Section  3.05   Mutilated, Destroyed, Lost or Stolen Residual Interest
                     Instruments..................................................10
   Section  3.06   Persons Deemed Owners..........................................10
   Section  3.07   Access to List of Owners' Names and Addresses..................10
   Section  3.08   Maintenance of Office or Agency................................10
   Section  3.09   Temporary Residual Interest Instruments........................10
   Section  3.10   Appointment of Paying Agent....................................11
   Section  3.11   Restrictions on Transfer of Residual Interest Instruments......12

ARTICLE IV - ACTIONS BY OWNER TRUSTEE.............................................13
   Section  4.01   Prior Notice to Owners with Respect to Certain Matters.........13
   Section  4.02   Action by Owners with Respect to Certain Matters...............14
   Section  4.03   Action by Owners with Respect to Bankruptcy....................14
   Section  4.04   Restrictions on Owners' Power..................................14
   Section  4.05   Majority Control...............................................14
   Section  4.06   Certain Litigation Matters.....................................15
</TABLE>

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                                TABLE OF CONTENTS
                                   (Continued)
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ARTICLE V - APPLICATION OF TRUST FUNDS; CERTAIN DUTIES............................15
   Section  5.01   Application of Trust Funds.....................................15
   Section  5.02   Method of Payment..............................................16
   Section  5.03   No Segregation of Monies; No Interest..........................16
   Section  5.04   Accounting and Reports to the Noteholders, Owners,
                     the Internal Revenue Service and Others......................16
   Section  5.05   Signature on Returns; Tax Matters Partner......................16

ARTICLE VI - AUTHORITY AND DUTIES OF OWNER TRUSTEE AND TRUST AGENT................17
   Section  6.01   General Authority..............................................17
   Section  6.02   General Duties.................................................17
   Section  6.03   Action Upon Instruction........................................17
   Section  6.04   No Duties Except as Specified in this Agreement or in
                     Instructions.................................................18
   Section  6.05   No Action Except Under Specified Documents or Instructions.....19
   Section  6.06   Restrictions...................................................19

ARTICLE VII - CONCERNING THE OWNER TRUSTEE AND THE TRUST AGENT....................19
   Section  7.01   Acceptance of Trusts and Duties................................19
   Section  7.02   Furnishing of Documents........................................21
   Section  7.03   Representations and Warranties.................................22
   Section  7.04   Reliance; Advice of Counsel....................................22
   Section  7.05   Not Acting in Individual Capacity..............................23
   Section  7.06   Owner Trustee and Trust Agent Not Liable for Residual
                     Interest Instruments, Notes or Contracts.....................23
   Section  7.07   Owner Trustee and Trust Agent May Own Residual Interest
                     Instruments and Notes........................................24

ARTICLE VIII - COMPENSATION AND INDEMNIFICATION OF OWNER TRUSTEE AND TRUST AGENT..24
   Section  8.01   Owner Trustee's and Trust Agent's Fees and Expenses............24
   Section  8.02   Indemnification................................................24
   Section  8.03   Payments to the Owner Trustee or Trust Agent...................24

ARTICLE IX - TERMINATION OF TRUST AGREEMENT.......................................24
   Section  9.01   Termination of Trust Agreement.................................24

ARTICLE X - SUCCESSOR OWNER TRUSTEES, ADDITIONAL OWNER TRUSTEE AND TRUST AGENT....25
   Section  10.01   Eligibility Requirements for Owner Trustee....................25
   Section  10.02   Resignation or Removal of Owner Trustee.......................26
   Section  10.03   Successor Owner Trustee.......................................26
   Section  10.04   Merger or Consolidation of Owner Trustee......................27
   Section  10.05   Appointment of Co-Trustee or Separate Trustee.................27
   Section  10.06   Appointment of Trust Agent....................................27
</TABLE>

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<PAGE>   4

                                TABLE OF CONTENTS
                                   (Continued)
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ARTICLE XI - MISCELLANEOUS........................................................29
   Section  11.01   Supplements and Amendments....................................29
   Section  11.02   [RESERVED]....................................................30
   Section  11.03   Limitations on Rights of Others...............................30
   Section  11.04   Notices.......................................................30
   Section  11.05   Severability of Provisions....................................30
   Section  11.06   Counterparts..................................................31
   Section  11.07   Successors and Assigns........................................31
   Section  11.08   No Petition...................................................31
   Section  11.09   No Recourse...................................................31
   Section  11.10   Residual Interest Instruments Nonassessable and Fully Paid....31
   Section  11.11   Headings......................................................31
   Section  11.12   Governing Law.................................................31
   Section  11.13   Depositor Payment Obligation..................................32
   Section  11.14   Certain Matters Regarding the Insurer.........................32
   Section  11.15   Fiduciary Duties..............................................32

                                    EXHIBITS

   Exhibit A - Form of Certificate of Trust
   Exhibit B - Form of Residual Interest Instrument
</TABLE>

                                      -iii-

<PAGE>   5

     This TRUST AGREEMENT, dated as of May 1, 2001, is among ONYX ACCEPTANCE
FINANCIAL CORPORATION, a Delaware corporation (the "DEPOSITOR"), BANKERS TRUST
(DELAWARE), a Delaware banking corporation, as owner trustee (the "OWNER
TRUSTEE"), and THE CHASE MANHATTAN BANK, a New York corporation, as agent of the
Owner Trustee for the limited purposes set forth herein (the "TRUST AGENT").

                                    ARTICLE I

                                   DEFINITIONS

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

     "ADMINISTRATION AGREEMENT" means the administration agreement, dated as of
May 1, 2001, among the Trust, the Depositor, the Indenture Trustee, the Trust
Agent and Onyx, as administrator.

     "ADMINISTRATOR" means the Person acting as "Administrator" under the
Administration Agreement.

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

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

     "BUSINESS TRUST STATUTE" means Chapter 38 of Title 12 of the Delaware Code,
12 Del. C. ss.3801, et seq., as the same may be amended from time to time.

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

     "CERTIFICATE REGISTER" and "CERTIFICATE REGISTRAR" mean the register
maintained and the registrar (or any successor thereto) appointed pursuant to
Section 3.04.

     "CLOSING DATE" means May 18, 2001.

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

     "COMMISSION" means the United States Securities and Exchange Commission.

<PAGE>   6

     "DEPOSITOR" means Onyx Acceptance Financial Corporation in its capacity as
depositor hereunder, and its successors.

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

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

     "GRANT" shall have the meaning assigned to such term in Section 2.03.

     "INDENTURE" means the indenture dated as of May 1, 2001, between the Trust,
as Issuer, and The Chase Manhattan Bank, as Indenture Trustee.

     "INSURER" means MBIA Insurance Corporation, and its successors.

     "NOTE DISTRIBUTION ACCOUNT" shall have the meaning assigned to such term in
the Sale and Servicing Agreement.

     "NOTES" means the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes
and the Class A-4 Notes, in each case issued pursuant to the Indenture.

     "ONYX" means Onyx Acceptance Corporation, and its successors.

     "OWNER" means each Person in whose name a Residual Interest Instrument is
registered in the Certificate Register.

     "OWNER TRUSTEE" means Bankers Trust (Delaware), a Delaware banking
corporation, not in its individual capacity but solely as owner trustee under
this Agreement, and any successor Owner Trustee hereunder.

     "OWNER TRUSTEE CORPORATE TRUST OFFICE" means the office of the Owner
Trustee at which its corporate trust business shall be administered, which
initially shall be E.A. Delle Donne Corporate Center, 1011 Centre Road, Suite
200, Wilmington, Delaware 19805-1266, Attention: Corporate Trust Administration
Department, or such other office at such other address as the Owner Trustee may
designate from time to time by notice to the Owners, the Servicer, the Depositor
and the Insurer.

     "PAYING AGENT" means the Trust Agent or any successor in interest thereto
or any other paying agent or co-paying agent appointed pursuant to Section 3.10
and authorized by the Issuer to make payments to and distributions on the
Residual Interest Instruments.

     "PERCENTAGE INTEREST" means with respect to each Residual Interest
Instrument, the percentage portion of the Residual Interest evidenced thereby as
stated on the face of such Residual Interest Instrument.

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

     "RECORD DATE" means, with respect to any Distribution Date, the day
immediately preceding such Distribution Date.

                                      -2-

<PAGE>   7

     "RESIDUAL INTEREST" means the right to receive amounts to be distributed or
paid to holders of the "Residual Interests" (as defined in the Sale and
Servicing Agreement), pursuant to the terms of the Sale and Servicing Agreement.

     "RESIDUAL INTEREST INSTRUMENT" means an instrument substantially in the
form attached as Exhibit B hereto and evidencing the Residual Interest.

     "RESPONSIBLE OFFICER" means, with respect to the Owner Trustee, any officer
within the Owner Trustee Corporate Trust Office, and with respect to the Trust
Agent, any officer within the Trust Agent Office, including any Vice President,
assistant secretary or other officer or assistant officer of the Owner Trustee
or the Trust Agent, as the case may be, customarily performing functions similar
to those performed by the people who at such time shall be officers and has
direct responsibility for the administration of this Agreement.

     "SALE AND SERVICING AGREEMENT" means the sale and servicing agreement,
dated as of May 1, 2001, among the Trust, as Issuer, the Depositor, as Seller,
Onyx, as Servicer and Custodian, the Indenture Trustee and the Trust Agent as
the same may be amended or supplemented from time to time.

     "SECRETARY OF STATE" means the Secretary of State of the State of Delaware.

     "SELLER" means Onyx Acceptance Financial Corporation, in its capacity as
seller under the Sale and Servicing Agreement, and its successors.

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

     "TRUST" means the trust established by this Agreement.

     "TRUST AGENT" means The Chase Manhattan Bank, a New York corporation, not
in its individual capacity but solely as agent of the Owner Trustee under this
Agreement, and any successor Trust Agent hereunder.

     "TRUST AGENT OFFICE" means the office of the Trust Agent at 450 West 33rd
Street, 14th Floor, New York, New York 10001-2697, Attention: Capital Markets
Fiduciary Services or such other office at such other address as the Trust Agent
may designate from time to time by notice to the Owners, the Servicer, the
Depositor and the Insurer.

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

     "UNDERWRITERS" means Credit Suisse First Boston Corporation and Salomon
Smith Barney Inc.

                                      -3-

<PAGE>   8

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

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

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

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

                                   ARTICLE II

                                  ORGANIZATION

     Section 2.01 Name. The Trust created hereby shall be known as Onyx
Acceptance Owner Trust 2001-B, in which name the Owner Trustee may conduct the
activities of the Trust, make and execute contracts and other instruments on
behalf of the Trust and sue and be sued, and in which name the Owner Trustee may
perform its duties hereunder.

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

     Section 2.03 Purposes and Powers. The sole purpose of the Trust is to
conserve the Trust Estate and collect and disburse the periodic income therefrom
for the use and benefit of the Owners, and in furtherance of such purpose to
engage in the following ministerial activities:

          (i) to issue the Notes pursuant to the Indenture, to sell the Notes,
     and to issue Residual Interest Instruments pursuant to this Agreement;

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

          (iii) to assign, grant, transfer, pledge, mortgage and convey
     ("GRANT") the Trust Estate pursuant to the Indenture and to hold, manage
     and distribute to the Owners pursuant to the Sale and Servicing Agreement
     any portion of the Trust Estate released from the Lien of, and remitted to
     the Trust pursuant to, the Indenture;

                                      -4-

<PAGE>   9

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

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

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

The Trust is hereby authorized to engage in the foregoing activities. Other than
pursuant to this Agreement, or in connection with or incidental to the
provisions or purposes of this Agreement, the Trust shall not (i) issue debt or
otherwise borrow money, (ii) merge or consolidate with any other entity,
reorganize, liquidate or transfer all or substantially all of its assets to any
other entity or (iii) otherwise engage in any activity or exercise any power not
provided for in this Agreement or the Basic Documents. However, all action taken
by the Owner Trustee on behalf of the Trust prior to the Closing Date in
connection with the filing of an Application for Licensure Sales Finance Company
in Pennsylvania is hereby ratified.

     Section 2.04 Appointment of Owner Trustee. The Depositor hereby appoints
the Owner Trustee as trustee of the Trust effective as of the date hereof, to
have all the rights, powers and duties set forth herein and in the Business
Trust Statute, and the Owner Trustee hereby accepts such appointment. The Owner
Trustee is hereby authorized and directed to file the Certificate of Trust with
the Secretary of State.

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

     Section 2.06 Declaration of Trust. The Owner Trustee hereby declares that
it will hold the Trust Estate in trust upon and subject to the conditions set
forth herein for the sole purpose of conserving the Trust Estate and collecting
and disbursing the periodic income therefrom for the use and benefit of the
Owners, subject to the obligations of the Trust under the Basic Documents. It is
the intention of the parties hereto that the Trust constitute a business trust
under the Business Trust Statute and that this Agreement constitute the
governing instrument of such business trust. It is the intention of the parties
hereto that, solely for income and franchise tax purposes, on and after the
Closing Date (i) so long as there is a sole Residual Interestholder, the Trust
shall be disregarded as an entity separate from the sole Residual
Interestholder, and (ii) if there is more than one Residual Interestholder, the
Trust shall be treated as a partnership, with the assets of the partnership
being the Contracts and other assets held by the Trust, and with the partners of
the partnership being the Owners of the Residual Interest Instruments, and the
Notes being debt of the partnership. The Trust shall not elect to be treated as
an association under Treasury Regulation Section 301.7701-3(a) for federal
income tax purposes. The parties agree that, unless otherwise required by
appropriate tax

                                      -5-
<PAGE>   10

authorities, the Trust will file or cause to be filed annual or other necessary
returns, reports and other forms consistent with the characterization of the
Trust as provided in the second preceding sentence. Effective as of the date
hereof, the Owner Trustee shall have all rights, powers and duties set forth
herein and in the Business Trust Statute for the sole purpose and to the extent
necessary to accomplish the purposes of the Trust as set forth in Section 2.03.

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

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

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

     Section 2.09 Representations and Warranties of the Depositor.

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

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

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

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

                                      -6-
<PAGE>   11

     corporate action. The execution, delivery and performance of this Agreement
     have been duly authorized by the Depositor by all necessary corporate
     action. The Depositor has duly executed and delivered this Agreement, and
     this Agreement constitutes the legal, valid and binding obligation of the
     Depositor enforceable against the Depositor in accordance with its terms.

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

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

     Section 2.10 Federal Income Tax Allocations.

     (a) Net income of the Trust for any month, as determined for federal income
tax purposes (and each item of income, gain, loss and deduction entering into
the computation thereof), shall be allocated among the Owners in proportion to
the Percentage Interest of the Residual Interest of each Owner.

     (b) Net losses of the Trust, if any, for any calendar month as determined
for federal income tax purposes (and each item of income, gain, loss and
deduction entering into the computation thereof) shall be allocated to the
Owners. Any indebtedness allocated pursuant to Treasury Regulation
ss.1.752-3(a)(3) shall be allocated to the Residual Interest. The Depositor is
authorized to modify the allocations in this paragraph if necessary or
appropriate, in its sole discretion, for the allocations to fairly reflect the
income, gain, loss and deduction to the Depositor or to the Owners, or as
otherwise required by the Code.

                                      -7-
<PAGE>   12

                                   ARTICLE III

             RESIDUAL INTEREST INSTRUMENTS AND TRANSFER OF INTERESTS

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

     Section 3.02 The Residual Interest Instruments and the Notes.

     (a) The Residual Interest Instruments shall not be issued with a principal
amount. The Residual Interest Instruments shall be executed by the Owner Trustee
on behalf of the Trust by manual or facsimile signature of an authorized officer
of the Owner Trustee, and authenticated by the Trust Agent by the manual or
facsimile signature of an authorized officer of the Trust Agent and shall be
deemed to have been validly issued when so executed and authenticated. Residual
Interest Instruments bearing the manual or facsimile signatures of individuals
who were, at the time when such signatures were affixed, authorized to sign on
behalf of the Owner Trustee or the Trust Agent shall be validly issued by the
Trust, notwithstanding that such individuals or any of them have ceased to be so
authorized prior to the execution, authentication and delivery of such Residual
Interest Instruments or did not hold such offices at the date of such Residual
Interest Instruments. All Residual Interest Instruments shall be dated the date
of their authentication.

     (b) The Notes shall be executed by the Owner Trustee on behalf of the Trust
by manual or facsimile signature of an authorized officer of the Owner Trustee,
and shall be authenticated as provided in the Indenture. Notes bearing the
manual or facsimile signature of an individual who was, at the time when such
signature was affixed, authorized to sign on behalf of the Owner Trustee shall
be deemed to have been validly executed by the Trust, notwithstanding that such
individual has ceased to be so authorized prior to the execution and delivery of
such Notes or did not hold such office at the date of such Notes.

     Section 3.03 Execution, Authentication and Delivery of Residual Interest
Instruments and Notes. The Owner Trustee shall cause to be executed,
authenticated and delivered upon the order of the Depositor, in exchange for the
Contracts and the other assets of the Trust, simultaneously with the sale,
assignment and transfer to the Trust of the Contracts, and such other assets,
(a) the Residual Interest Instruments representing 100% of the Percentage
Interests of the Residual Interest, evidencing the entire ownership of the
Trust, and (b) Notes executed by the Trust in aggregate principal amount of, in
the case of the (i) Class A-1 Notes, $78,000,000, (ii) Class A-2 Notes,
$96,000,000, (iii) Class A-3 Notes, $131,000,000, and (iv) Class A-4 Notes,
$95,000,000. The Trust Agent is hereby authorized to direct, on behalf of the
Trust, the Indenture Trustee to authenticate and deliver the Notes upon the
order of the Depositor. No Residual Interest Instrument shall entitle its Owner
to any benefit under this Agreement, or be valid for any purpose, unless there
appears on such Residual Interest Instrument a certificate of authentication
substantially in the form set forth in the form of Residual Interest Instrument
attached hereto as Exhibit B, executed by the Trust Agent or another
authenticating agent of the Owner Trustee, by manual or facsimile signature, and
such certificate upon any Residual Interest Instrument shall be conclusive
evidence, and the only evidence, that such Residual Interest Instrument has been
duly authenticated and delivered hereunder. Upon issuance, authorization and
delivery pursuant to the terms hereof, the Residual Interest Instruments will be
entitled to the benefits of this Agreement.

                                      -8-
<PAGE>   13

     Section 3.04 Registration of Transfer and Exchange of Residual Interest
Instruments.

     (a) The Certificate Registrar shall keep or cause to be kept, a Certificate
Register, subject to such reasonable regulations as it may prescribe. The
Certificate Register shall provide for the registration of Residual Interest
Instruments and transfers and exchanges of Residual Interest Instruments as
provided herein. The Trust Agent, as agent for the Trust, is hereby initially
appointed Certificate Registrar for the purpose of registering Residual Interest
Instruments and transfers and exchanges of Residual Interest Instruments as
herein provided. In the event that, subsequent to the Closing Date, the Trust
Agent notifies the Administrator that the Trust Agent is unable to act as
Certificate Registrar, the Administrator shall appoint another bank or trust
company, having an office or agency located in The City of New York, agreeing to
act in accordance with the provisions of this Agreement applicable to it, and
otherwise acceptable to the Depositor, to act as successor Certificate Registrar
hereunder.

     (b) Upon surrender for registration of transfer of any Residual Interest
Instrument at the office of the Certificate Registrar, the Owner Trustee shall
execute, authenticate and deliver (or shall cause the Trust Agent, as its
authenticating agent, to authenticate and deliver), in the name of the
designated transferee or transferees, one or more new Residual Interest
Instruments in authorized denominations of a like aggregate principal amount.

     (c) At the option of a Owner of a Residual Interest Instrument, Residual
Interest Instruments may be exchanged for other Residual Interest Instruments in
authorized denominations of a like Percentage Interest, upon surrender of the
Residual Interest Instruments to be exchanged at the office of the Certificate
Registrar. Whenever any Residual Interest Instruments are so surrendered for
exchange, the Owner Trustee on behalf of the Trust shall execute, authenticate
and deliver (or shall cause the Trust Agent, as its authenticating agent, to
authenticate and deliver) the Residual Interest Instruments that the Owner
making the exchange is entitled to receive. Every Residual Interest Instrument
presented or surrendered for registration of transfer or exchange shall be
accompanied by a written instrument of transfer in form satisfactory to the
Trust Agent and the Certificate Registrar duly executed by the Owner thereof or
his attorney duly authorized in writing. In addition, each Residual Interest
Instrument presented or surrendered for registration of transfer and exchange
must be accompanied by a letter from the prospective Owner certifying as to the
representations set forth in Section 3.11(a) and (b).

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

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

                                      -9-
<PAGE>   14

     Section 3.05 Mutilated, Destroyed, Lost or Stolen Residual Interest
Instruments. If (a) any mutilated Residual Interest Instrument is surrendered to
the Certificate Registrar, or the Certificate Registrar receives evidence to its
satisfaction of the destruction, loss or theft of any Residual Interest
Instrument, and (b) there is delivered to the Certificate Registrar and the
Trust Agent such security or indemnity as may be required by them to save each
of them harmless, then, in the absence of notice that such Residual Interest
Instrument has been acquired by a bona fide purchaser, the Owner Trustee on
behalf of the Trust shall execute and the Trust Agent, as its authenticating
agent, shall authenticate and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Residual Interest Instrument, a new
Residual Interest Instrument of like tenor and fractional undivided interest. In
connection with the issuance of any new Residual Interest Instrument under this
Section, the Owner Trustee or, on its behalf, the Trust Agent, may require the
payment by the Owner of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto. Any duplicate Residual Interest
Instrument issued pursuant to this Section shall constitute complete and
indefeasible evidence of ownership in the Trust, as if originally issued,
whether or not the lost, stolen or destroyed Residual Interest Instrument shall
be found at any time.

     Section 3.06 Persons Deemed Owners. Prior to due presentation of a Residual
Interest Instrument for registration of transfer, the Owner Trustee, the Trust
Agent, the Certificate Registrar, any Paying Agent and any of their respective
agents may treat the Person in whose name any Residual Interest Instrument is
registered as the owner of such Residual Interest Instrument for the purpose of
receiving distributions pursuant to Section 5.01 and for all other purposes
whatsoever, and none of the Owner Trustee, the Trust Agent, the Certificate
Registrar, any Paying Agent or any of their respective agents shall be affected
by any notice to the contrary.

     Section 3.07 Access to List of Owners' Names and Addresses. The Trust Agent
shall furnish or cause to be furnished to the Servicer, the Insurer and the
Depositor, within 15 days after receipt by the Trust Agent of a written request
therefor from the Servicer, the Insurer or the Depositor, a list, in such form
as the Servicer, the Insurer or the Depositor may reasonably require, of the
names and addresses of the Owners as of the most recent Record Date. Each Owner,
by receiving and holding a Residual Interest Instrument, agrees with the
Servicer, the Depositor, the Owner Trustee and the Trust Agent that none of the
Servicer, the Depositor, the Owner Trustee or the Trust Agent shall be held
accountable by reason of the disclosure of any such information as to its name
and address hereunder, regardless of the source from which such information was
derived.

     Section 3.08 Maintenance of Office or Agency. The Trust Agent shall
maintain in the City of New York an office or offices or agency or agencies
where Residual Interest Instruments may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Trust Agent in
respect of the Residual Interest Instruments and the Basic Documents may be
served. The Trust Agent hereby designates the office of The Chase Manhattan Bank
at the address provided under the definition of the term "TRUST AGENT OFFICE" as
its office for such purposes. The Trust Agent shall give prompt written notice
to the Owner Trustee, the Depositor, the Servicer and to the Owners of any
change in the location of the Certificate Register or any such office or agency.

     Section 3.09 Temporary Residual Interest Instruments. Pending the
preparation of definitive Residual Interest Instruments, the Owner Trustee, on
behalf of the Trust, may execute, authenticate and deliver, temporary Residual
Interest Instruments that are printed, lithographed, typewritten, mimeographed
or otherwise produced, in any authorized denomination, substantially of the
tenor of the definitive Residual Interest Instruments in lieu of which they are
issued. If

                                      -10-
<PAGE>   15

temporary Residual Interest Instruments are issued, the Depositor will cause
definitive Residual Interest Instruments to be prepared without unreasonable
delay. After the preparation of definitive Residual Interest Instruments, the
temporary Residual Interest Instruments shall be exchangeable for definitive
Residual Interest Instruments upon surrender of the temporary Residual Interest
Instruments at the office or agency to be maintained as provided in Section
3.08, without charge to the Owner. Upon surrender for cancellation of any one or
more temporary Residual Interest Instruments, the Owner Trustee shall execute,
authenticate and deliver (or shall cause the Trust Agent, as its authenticating
agent, to authenticate and deliver) in exchange therefor a like principal amount
of definitive Residual Interest Instruments in authorized denominations. Until
so exchanged, the temporary Residual Interest Instruments shall in all respects
be entitled to the same benefits hereunder as definitive Residual Interest
Instruments.

     Section 3.10 Appointment of Paying Agent. The Owner Trustee, on behalf of
the Trust, hereby appoints the Trust Agent as Paying Agent under this Agreement.
The Paying Agent shall make distributions to Owners pursuant to Section 5.01
hereof and shall report the amounts of such distributions to the Owner Trustee.
The Paying Agent shall have the revocable power to withdraw funds from the
Payment Account for the purpose of making the distributions referred to above.
The Owner Trustee on behalf of the Trust may revoke such power and remove the
Paying Agent if the Owner Trustee is directed in writing to do so by the
Administrator. Each Paying Agent shall be permitted to resign as Paying Agent
upon 30 days' written notice to the Trust. In the event that the Trust Agent
shall no longer be the Paying Agent, the Administrator shall appoint a successor
to act as Paying Agent (which shall be a bank or trust company acceptable to the
Insurer). The Administrator shall cause such successor Paying Agent or any
additional Paying Agent appointed by the Administrator to execute and deliver to
the Trust an instrument in which such successor Paying Agent or additional
Paying Agent shall agree with the Trust that, as Paying Agent, such successor
Paying Agent or additional Paying Agent will hold all sums, if any, held by it
for payment to the Owners in trust for the benefit of the Owners entitled
thereto until such sums shall be paid to the Owners. The Paying Agent shall
return all unclaimed funds to the Trust and upon removal of a Paying Agent such
Paying Agent shall also return all funds in its possession to the Trust. The
provisions of Sections 7.01, 7.03, 7.04 and 8.01 shall apply to the Trust Agent
also in its role as Paying Agent, for so long as the Trust Agent shall act as
Paying Agent and, to the extent applicable, to any other paying agent appointed
hereunder. Any reference in this Agreement to the Paying Agent shall include any
co-paying agent unless the context requires otherwise. Notwithstanding anything
herein to the contrary, the Trust Agent and the Paying Agent shall be the same
entity as the Indenture Trustee under the Indenture and the Sale and Servicing
Agreement, unless an Insurer Default has occurred and is continuing. In such
event, the Trust Agent and the Paying Agent shall resign and the Owner Trustee
shall assume the duties and obligations of the Trust Agent and the Paying Agent
hereunder and under the Sale and Servicing Agreement.

                                      -11-
<PAGE>   16

     Section 3.11 Restrictions on Transfer of Residual Interest Instruments.

     (a) Each prospective purchaser and any subsequent transferee of a Residual
Interest Instrument (each, a "PROSPECTIVE OWNER"), other than the Depositor, by
virtue of its acceptance thereof, shall be deemed to have represented and
warranted to the Owner Trustee, the Trust Agent and the Certificate Registrar
and any of their respective successors that:

          (i) Such Person is (A) a "QUALIFIED INSTITUTIONAL BUYER" as defined in
     Rule 144A under the Securities Act of 1933, as amended (the "SECURITIES
     ACT"), is aware that the seller of the Residual Interest Instrument may be
     relying on the exemption from the registration requirements of the
     Securities Act provided by Rule 144A and is acquiring such Residual
     Interest Instrument for its own account or for the account of one or more
     qualified institutional buyers for whom it is authorized to act, or (B) a
     Person involved in the organization or operation of the Trust or an
     affiliate of such Person within the meaning of Rule 3a-7 of the Investment
     Company Act of 1940, as amended (including, but not limited to, the
     Depositor and Onyx Acceptance Corporation).

          (ii) Such Person understands that the Residual Interest Instruments
     have not been and will not be registered under the Securities Act and may
     be offered, sold, pledged or otherwise transferred only to a person whom
     the seller reasonably believes is (A) a qualified institutional buyer (as
     such term is defined in Rule 144A under the Securities Act) or (B) a Person
     involved in the organization or operation of the Trust or an affiliate of
     such Person, in a transaction meeting the requirements of Rule 144A under
     the Securities Act and in accordance with any applicable securities laws of
     any state of the United States.

          (iii) Such person understands that the Residual Interest Instrument
     bears a legend to the following effect:

          "THE RESIDUAL INTEREST IN THE TRUST REPRESENTED BY THIS RESIDUAL
          INTEREST INSTRUMENT HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
          SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY STATE
          SECURITIES LAWS. THIS RESIDUAL INTEREST INSTRUMENT MAY BE DIRECTLY OR
          INDIRECTLY OFFERED OR SOLD OR OTHERWISE DISPOSED OF (INCLUDING
          PLEDGED) BY THE HOLDER HEREOF ONLY TO (I) A "QUALIFIED INSTITUTIONAL
          BUYER" AS DEFINED IN RULE 144A UNDER THE ACT, IN A TRANSACTION THAT IS
          REGISTERED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS OR THAT
          IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT PURSUANT TO
          RULE 144A OR (II) A PERSON INVOLVED IN THE ORGANIZATION OR OPERATION
          OF THE TRUST OR AN AFFILIATE OF SUCH A PERSON WITHIN THE MEANING OF
          RULE 3a-7 OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED
          (INCLUDING, BUT NOT LIMITED TO ONYX ACCEPTANCE FINANCIAL CORPORATION
          AND ONYX ACCEPTANCE CORPORATION) IN A TRANSACTION THAT IS REGISTERED
          UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS OR THAT IS EXEMPT
          FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND SUCH LAWS. NO PERSON
          IS OBLIGATED TO REGISTER THIS RESIDUAL INTEREST INSTRUMENT UNDER THE
          ACT OR ANY STATE SECURITIES LAWS.

                                      -12-
<PAGE>   17

          NO TRANSFER OF THIS RESIDUAL INTEREST INSTRUMENT OR ANY BENEFICIAL
          INTEREST THEREIN SHALL BE MADE TO ANY PERSON UNLESS THE OWNER TRUSTEE
          HAS RECEIVED A CERTIFICATE FROM THE TRANSFEREE TO THE EFFECT THAT SUCH
          TRANSFEREE (I) IS NOT A PERSON WHICH IS AN EMPLOYEE BENEFIT PLAN,
          TRUST OR ACCOUNT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME
          SECURITY ACT OF 1974, AS AMENDED ("ERISA") OR SECTION 4975 OF THE CODE
          OR A GOVERNMENTAL PLAN, DEFINED IN SECTION 3(32) OF ERISA SUBJECT TO
          ANY FEDERAL, STATE OR LOCAL LAW WHICH IS, TO A MATERIAL EXTENT,
          SIMILAR TO THE FOREGOING PROVISIONS OF ERISA OR THE CODE (ANY SUCH
          PERSON BEING A "PLAN") AND (II) IS NOT AN ENTITY, INCLUDING AN
          INSURANCE COMPANY SEPARATE ACCOUNT OR GENERAL ACCOUNT, WHOSE
          UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF A PLAN'S INVESTMENT
          IN THE ENTITY."

          (iv) Such Person shall comply with the provisions of Section 3.11(b),
     as applicable, relating to the ERISA restrictions with respect to the
     acceptance or acquisition of such Residual Interest Instrument.

     (b) The Residual Interest Instruments may not be acquired by or for the
account of (i) an employee benefit plan (as defined in Section 3(3) of the
Employee Retirement Income Security Act of 1974, as amended ("ERISA")) that is
subject to the provisions of Title I of ERISA, (ii) a plan described in Section
4975(e)(1) of the Internal Revenue Code of 1986, as amended, or (iii) any
entity, including an insurance company separate account or general account,
whose underlying assets include plan assets by reason of a plan's investment in
the entity (each, a "BENEFIT PLAN"). By accepting and holding a Residual
Interest Instrument, the Owner shall be deemed to have represented and warranted
that it is not a Benefit Plan.

                                   ARTICLE IV

                            ACTIONS BY OWNER TRUSTEE

     Section 4.01 Prior Notice to Owners with Respect to Certain Matters.
Subject to the provisions and limitations of Section 4.04 and Section 4.06, with
respect to the following matters, neither the Owner Trustee nor the Trust Agent
shall take any action unless at least 30 days before the taking of such action,
the Owner Trustee or the Trust Agent, as applicable, shall have notified the
Owners in writing of the proposed action and the Owners shall not have notified
the Owner Trustee or the Trust Agent, as applicable, in writing prior to the
30th day after such notice is given that such Owners have withheld consent or
provided alternative direction:

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

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

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

                                      -13-
<PAGE>   18

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

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

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

     Section 4.02 Action by Owners with Respect to Certain Matters. Subject to
the provisions and limitations of Section 4.04 and Section 4.06, neither the
Owner Trustee nor the Trust Agent shall have the power, except upon the
direction of the Owners and with the prior written consent of the Insurer (so
long as no Insurer Default shall have occurred and be continuing), to (a) remove
the Administrator pursuant to Section 8 of the Administration Agreement, (b)
appoint a successor Administrator pursuant to Section 8 of the Administration
Agreement, (c) remove the Servicer pursuant to Section 7.01 of the Sale and
Servicing Agreement, (d) except as expressly provided in the Basic Documents,
sell the Contracts after the termination of the Indenture, (e) initiate any
claim, suit or proceeding by the Trust or compromise any claim, suit or
proceeding brought by or against the Trust, (f) authorize the merger or
consolidation of the Trust with or into any other business trust or entity
(other than in accordance with Section 3.10 of the Indenture) or (g) amend the
Certificate of Trust. The Owner Trustee and the Trust Agent may only take the
actions referred to in the preceding sentence upon written instructions signed
by the Owners and, to the extent required by the preceding sentence, with the
prior written consent of the Insurer.

     Section 4.03 Action by Owners with Respect to Bankruptcy. Neither the Owner
Trustee nor the Trust Agent shall have the power to commence a voluntary
proceeding in bankruptcy relating to the Trust without the prior written consent
of the Insurer and the unanimous prior approval of all Owners and the delivery
to the Owner Trustee or the Trust Agent, as applicable, by each such Owner of a
certificate certifying that such Owner reasonably believes that the Trust is
insolvent.

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

     Section 4.05 Majority Control. Except as expressly provided herein, any
action that may be taken by the Owners under this Agreement may be taken by
Owners evidencing more than 50% of the Percentage Interest in the Residual
Interest. Except as expressly provided herein, any written notice of the Owners
delivered pursuant to this Agreement shall be effective if signed by Owners
evidencing more than 50% of the Percentage Interest in the Residual Interest at
the time of the delivery of such notice.

                                      -14-
<PAGE>   19

     Section 4.06 Certain Litigation Matters.

     (a) The Trust Agent, the Indenture Trustee or the Owner Trustee shall
provide prompt written notice to the Insurer of any action, proceeding or
investigation of which a Responsible Officer of the Trust Agent, the Indenture
Trustee or the Owner Trustee, as applicable, has actual knowledge that could
adversely affect the Trust or the Trust Estate or the rights or obligations of
the Insurer under the Basic Documents or any other document delivered with
respect thereto.

     (b) The Trust Agent, the Indenture Trustee and Owner Trustee shall, upon
written notice from the Insurer, allow the Insurer to institute, assume or
control the defense of any action, proceeding or investigation that could
adversely affect the Trust or the Trust Estate or the rights or obligations of
the Insurer under any of the Basic Documents or any other document delivered
with respect thereto.

     (c) None of the Trust Agent, the Indenture Trustee or the Owner Trustee
shall, without the Insurer's prior written consent or unless directed by the
Insurer, undertake or join any litigation or agree to any settlement of any
action, proceeding or investigation that could adversely affect the Trust or the
rights or obligations of the Insurer under any of the Basic Documents or any
other document delivered with respect thereto.

                                    ARTICLE V

                   APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

     Section 5.01 Application of Trust Funds.

     (a) On each Distribution Date, the Trust Agent, on behalf of the Owner
Trustee, shall direct the Paying Agent to distribute to the Owners from amounts
on deposit in the Payment Account the distributions as provided in Section
4.04(b) of the Sale and Servicing Agreement with respect to such Distribution
Date.

     (b) On each Distribution Date, the Trust Agent, on behalf of the Owner
Trustee, shall cause the Paying Agent to send to each Owner the statement or
statements provided to the Owner Trustee or the Trust Agent by the Servicer
pursuant to Section 4.05 of the Sale and Servicing Agreement with respect to
such Distribution Date.

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

                                      -15-
<PAGE>   20

     Section 5.02 Method of Payment. Subject to Section 9.01(c) respecting the
final payment upon retirement of each Residual Interest Instrument,
distributions required to be made to each Owner of record on the related Record
Date shall be made by check mailed to such Owner at the address of such Owner
appearing in the Certificate Register (or if requested by the Owner, by wire
transfer of immediately available funds or pursuant to other arrangements), the
amount to be distributed to such Owner pursuant to such Owner's Residual
Interest Instruments.

     Section 5.03 No Segregation of Monies; No Interest. Subject to Section
5.01, monies received by the Trust Agent hereunder need not be segregated in any
manner except to the extent required by law or the Sale and Servicing Agreement
and may be deposited under such general conditions as may be prescribed by law,
and the Trust Agent shall not be liable for any interest thereon.

     Section 5.04 Accounting and Reports to the Noteholders, Owners, the
Internal Revenue Service and Others. The Trust Agent shall (a) maintain (or
cause to be maintained) the books of the Trust on a calendar year basis and the
accrual method of accounting, (b) deliver to each Owner, as may be required by
the Code and applicable Treasury Regulations, such information as may be
required (including Schedule K-1) to enable each Owner to prepare its federal
and state income tax returns, (c) file such tax returns relating to the Trust
(including a partnership information return, IRS Form 1065) and make such
elections as from time to time may be required or appropriate under any
applicable state or federal statute or any rule or regulation thereunder so as
to maintain the Trust's characterization as a partnership for federal income tax
purposes, (d) cause such tax returns to be signed in the manner required by law
and (e) collect or cause to be collected any withholding tax as described in and
in accordance with Section 5.01(c) with respect to income or distributions to
Owners. Unless otherwise required by applicable law, the Trust Agent shall elect
under Section 1278 of the Code to include in current income any market discount
that accrues with respect to the Contracts. The Trust Agent shall not make the
election provided under Section 754 of the Code.

     Section 5.05 Signature on Returns; Tax Matters Partner.

     (a) The Owner Trustee shall sign on behalf of the Trust the tax returns of
the Trust, unless applicable law requires an Owner to sign such documents, in
which case such documents shall be signed by the Depositor, as long as the
Depositor holds a Residual Interest Instrument, and otherwise the holder of the
largest Percentage Interest in the Residual Interest Instruments shall sign such
documents.

     (b) The Depositor shall be designated the "tax matters partner" of the
Trust pursuant to Section 6231(a)(7)(A) of the Code and applicable Treasury
Regulations, as long as the Depositor holds a Residual Interest Instrument, and
otherwise the owner of the largest Percentage Interest in the Residual Interest
Instruments shall be the "tax matters partner".

                                      -16-
<PAGE>   21

                                   ARTICLE VI

              AUTHORITY AND DUTIES OF OWNER TRUSTEE AND TRUST AGENT

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

     Section 6.02 General Duties. Subject to the provisions and limitations of
Sections 2.03 and 2.06:

     (a) it shall be the duty of the Owner Trustee to discharge (or cause to be
discharged through the Administrator or such agents as shall be appointed with
the consent of the Insurer) all of its responsibilities pursuant to the terms of
this Agreement and the other Basic Documents to which the Trust is a party and
to administer the Trust in the interest of the Owners, subject to the Basic
Documents and in accordance with the provisions of this Agreement.
Notwithstanding the foregoing, the Owner Trustee shall be deemed to have
discharged its duties and responsibilities hereunder and under the other Basic
Documents to the extent the Administrator or the Trust Agent has agreed in the
Administration Agreement or this Agreement, respectively, to perform any act or
to discharge any duty of the Owner Trustee or the Trust hereunder or under any
Basic Document, and the Owner Trustee shall not be held liable for the default
or failure of the Administrator or the Trust Agent to carry out its obligations
under the Administration Agreement or this Agreement, respectively; and

     (b) it shall be the duty of the Trust Agent to discharge all of its
responsibilities pursuant to the terms of this Agreement and the other Basic
Documents to which the Trust and the Trust Agent are a party and to administer
the Trust in the interest of the Owners, subject to the Basic Documents and in
accordance with the provisions of this Agreement.

     Section 6.03 Action Upon Instruction.

     (a) Subject to Article Four, in accordance with the terms of the Basic
Documents, the Owners may by written instruction direct the Owner Trustee or the
Trust Agent in the management of the Trust. Such direction may be exercised at
any time by written instruction of the Owners pursuant to Article Four.

     (b) Neither the Owner Trustee nor the Trust Agent shall be required to take
any action hereunder or under any other Basic Document if the Owner Trustee or
the Trust Agent, as applicable, shall have reasonably determined, or shall have
been advised by counsel, that such action is likely to result in liability on
the part of the Owner Trustee or the Trust Agent, as applicable, or is contrary
to the terms hereof or of any other Basic Document or is otherwise contrary to
law.

                                      -17-
<PAGE>   22

     (c) Whenever the Owner Trustee or the Trust Agent is unable to decide
between alternative courses of action permitted or required by the terms of this
Agreement or under any other Basic Document, the Owner Trustee or the Trust
Agent, as applicable, shall promptly give notice (in such form as shall be
appropriate under the circumstances) to the Owners and the Insurer requesting
instruction as to the course of action to be adopted, and to the extent the
Owner Trustee or the Trust Agent, as applicable, acts in good faith in
accordance with any written instruction from the Owners received, the Owner
Trustee or the Trust Agent, as applicable, shall not be liable on account of
such action to any Person. If the Owner Trustee or the Trust Agent shall not
have received appropriate instruction within ten days of such notice (or within
such shorter period of time as reasonably may be specified in such notice or may
be necessary under the circumstances) it may, but shall be under no duty to,
take or refrain from taking such action not inconsistent with this Agreement and
the other Basic Documents, as it shall deem to be in the best interests of the
Owners, and shall have no liability to any Person for such action or inaction.

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

     Section 6.04 No Duties Except as Specified in this Agreement or in
Instructions. Neither the Owner Trustee nor the Trust Agent shall have any duty
or obligation to manage, make any payment with respect to, register, record,
sell, dispose of or otherwise deal with the Trust Estate, or to otherwise take
or refrain from taking any action under, or in connection with, any document
contemplated hereby to which the Owner Trustee or the Trust Agent, as
applicable, is a party, except as expressly provided by the terms of this
Agreement or in any document or written instruction received by the Owner
Trustee or the Trust Agent, as applicable, pursuant to Section 6.03; and no
implied duties or obligations shall be read into this Agreement or any other
Basic Document against the Owner Trustee or the Trust Agent. Neither the Owner
Trustee nor the Trust Agent shall have any responsibility for filing any
financing or continuation statement in any public office at any time or to
otherwise perfect or maintain the perfection of any security interest or lien
granted to it hereunder or to prepare or file with the Commission any filing for
the Trust or to record this Agreement or any other Basic Document. Each of the
Owner Trustee and the Trust Agent nevertheless agrees that it will, at its own
cost and expense, promptly take all action as may be necessary to discharge any
liens on any part of the Trust Estate that result from actions by, or claims
against, the Owner Trustee or the Trust Agent, as applicable, that are not
related to the ownership or the administration of the Trust Estate or the Grant
of any portion thereof to the Indenture Trustee pursuant to the Indenture.

                                      -18-
<PAGE>   23

     Section 6.05 No Action Except Under Specified Documents or Instructions.
Neither the Owner Trustee nor the Trust Agent shall manage, control, use, sell,
dispose of or otherwise deal with any part of the Trust Estate except in
accordance with (i) the powers granted to and the authority conferred upon the
Owner Trustee or the Trust Agent, as applicable, pursuant to this Agreement,
(ii) the other Basic Documents and (iii) any document or instruction delivered
to the Owner Trustee or the Trust Agent, as applicable, pursuant to Section
6.03.

     Section 6.06 Restrictions. Neither the Owner Trustee nor the Trust Agent
shall take any action (i) that is inconsistent with the purposes of the Trust
set forth in Section 2.03 or (ii) that, to the actual knowledge of the Owner
Trustee or the Trust Agent, as applicable, would result in the Trust's becoming
taxable as a corporation for federal or state income tax purposes. The Owners
shall not direct the Owner Trustee or the Trust Agent to take action that would
violate the provisions of this Section.

                                   ARTICLE VII

                CONCERNING THE OWNER TRUSTEE AND THE TRUST AGENT

     Section 7.01 Acceptance of Trusts and Duties. The Owner Trustee accepts the
trusts hereby created and agrees to perform its duties hereunder with respect to
such trusts but only upon the terms of this Agreement and the other Basic
Documents. The Trust Agent agrees to perform its duties hereunder upon the terms
of this Agreement and the other Basic Documents. Neither the Owner Trustee nor
the Trust Agent shall be liable except for the performance of such duties and
obligations as are specifically set forth in this Agreement, no implied
covenants or obligations shall be read into this Agreement against the Owner
Trustee or the Trust Agent and, in the absence of bad faith on the part of the
Owner Trustee or the Trust Agent, as applicable, the Owner Trustee and the Trust
Agent may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon any certificates or opinions
furnished to the Owner Trustee or the Trust Agent and conforming to the
requirements of this Agreement. Each of the Owner Trustee and the Trust Agent
agrees to disburse all monies actually received by it constituting part of the
Trust Estate upon the terms of this Agreement and the other Basic Documents.
Neither the Owner Trustee nor the Trust Agent shall be answerable or accountable
hereunder or under any other Basic Document under any circumstances, except (i)
for its own willful misconduct or negligence or (ii) in the case of the
inaccuracy of any representation or warranty contained in Section 7.03 expressly
made by the Owner Trustee or the Trust Agent, as the case may be. In particular,
but not by way of limitation (and subject to the exceptions set forth in the
preceding sentence):

          (a) neither the Owner Trustee nor the Trust Agent shall be liable for
     any error of judgment made by a Responsible Officer of the Owner Trustee or
     the Trust Agent, respectively;

          (b) neither the Owner Trustee nor the Trust Agent shall be liable with
     respect to any action taken or omitted to be taken by it in good faith in
     accordance with this Agreement, the Basic Documents or the written
     direction of the Administrator or any Owner;

                                      -19-
<PAGE>   24

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

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

          (e) neither the Owner Trustee nor the Trust Agent shall be responsible
     for or in respect of the validity or sufficiency of this Agreement or for
     the due execution hereof by the Depositor or for the form, character,
     genuineness, sufficiency, value or validity of any of the Trust Estate, or
     for or in respect of the validity or sufficiency of the Basic Documents,
     other than the certificate of authentication on the Residual Interest
     Instruments, and neither the Owner Trustee nor the Trust Agent shall assume
     or incur any liability, duty or obligation to any Noteholder or to any
     Owner, other than as expressly provided for herein or expressly agreed to
     in the other Basic Documents;

          (f) neither the Owner Trustee nor the Trust Agent shall be liable for
     the default or misconduct of the Administrator, the Depositor, the Insurer,
     the Indenture Trustee or the Servicer under any of the Basic Documents or
     otherwise and neither the Owner Trustee nor the Trust Agent shall have any
     obligation or liability to perform the obligations of the Trust under this
     Agreement or the other Basic Documents that are required to be performed by
     the Administrator under the Administration Agreement, the Indenture Trustee
     under the Indenture or the Servicer or the Depositor under the Sale and
     Servicing Agreement;

          (g) neither the Owner Trustee nor the Trust Agent shall be under any
     obligation to exercise any of the rights or powers vested in it by this
     Agreement, or to institute, conduct or defend any litigation under this
     Agreement or otherwise or in relation to this Agreement or any other Basic
     Document, at the request, order or direction of the Owners, unless such
     Owners have offered to the Owner Trustee or the Trust Agent, as applicable,
     security or indemnity satisfactory to it against the costs, expenses and
     liabilities that may be incurred by the Owner Trustee or the Trust Agent,
     as applicable, therein or thereby; the right of the Owner Trustee and the
     Trust Agent to perform any discretionary act enumerated in this Agreement
     or in any other Basic Document shall not be construed as a duty, and
     neither the Owner Trustee nor the Trust Agent shall be answerable for other
     than its negligence or willful misconduct in the performance of any such
     act;

          (h) anything in this Agreement to the contrary notwithstanding, in no
     event shall the Owner Trustee or Trust Agent be liable for special,
     indirect or consequential loss or damage of any kind whatsoever (including
     but not limited to lost profit), even if the Owner Trustee or Trust Agent
     has been advised of the likelihood of such loss or damage and regardless of
     the form of action;

          (i) neither the Owner Trustee nor the Trust Agent shall be required to
     take notice or be deemed to have notice or knowledge of any default, any
     Event of Default or Servicer Default under any of the Basic Documents
     unless a Responsible Officer of the Owner Trustee or the Trust Agent,
     respectively, shall have received written notice thereof. In the absence of
     receipt of such notice, the Owner Trustee and Trust Agent may conclusively
     assume that there is no default, Event of Default or Servicer Default;

                                      -20-
<PAGE>   25

          (j) [RESERVED].

          (k) each of the Owner Trustee and the Trust Agent may rely and shall
     be protected in acting or refraining from acting upon any resolution,
     opinion of counsel, certificate of auditors or any other certificate,
     statement, instrument, opinion, report, notice, request, consent, order,
     appraisal, bond or other paper or document believed by it to be genuine and
     to have been signed or presented by the proper party or parties;

          (l) each of the Owner Trustee and the Trust Agent may consult with
     counsel and any advice or opinion of counsel shall be full and complete
     authorization and protection in respect of any action taken or suffered or
     omitted by it hereunder in good faith and in accordance with such advice or
     opinion of counsel;

          (m) neither the Owner Trustee nor the Trust Agent shall be bound to
     make any investigation into the facts or matters stated in any resolution,
     certificate, statement, instrument, opinion, report, notice, request,
     consent, order, approval, bond or other paper or document, unless requested
     in writing to do so by the Administrator or Owners; provided, however, that
     if the payment within a reasonable time to the Owner Trustee or Trust
     Agent, as applicable, of the costs, expenses or liabilities likely to be
     incurred by it in the making of such investigation is, in the opinion of
     the Owner Trustee or Trust Agent, as applicable, not reasonably assured to
     it by the security afforded to them by the terms of this Agreement, the
     Owner Trustee or Trust Agent, as applicable, may require reasonable
     indemnity against such cost, expense or liability as a condition to taking
     any such action;

          (n) neither the Owner Trustee nor the Trust Agent shall be required to
     give any bond or surety in respect of the execution of the Trust created
     hereby or the powers granted hereunder; and

          (o) each of the Owner Trustee and Trust Agent may execute any of their
     respective trusts or powers hereunder or perform any of their respective
     duties hereunder either directly or by or through agents, attorneys or
     custodians, and neither the Owner Trustee nor the Trust Agent shall be
     responsible for any misconduct or negligence on the part of any such agent,
     attorney or custodian appointed by the Owner Trustee or Trust Agent, as
     applicable, with due care.

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

                                      -21-
<PAGE>   26

     Section 7.03 Representations and Warranties.

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

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

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

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

     (b) The Trust Agent hereby represents and warrants to the Depositor and the
Owners:

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

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

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

     Section 7.04 Reliance; Advice of Counsel.

     (a) Neither the Owner Trustee nor the Trust Agent shall incur liability to
anyone in acting upon any signature, instrument, notice, resolution, request,
consent, order, certificate, report, opinion, bond or other document or paper
believed by it to be genuine and believed by it to be signed by the proper party
or parties. The Owner Trustee and the Trust Agent may accept a certified copy of
a resolution of the board of directors or other governing body of any corporate
party as conclusive evidence that such resolution has been duly adopted by such
body and that the same is in full force and effect. As to any fact or matter the
method of determination of which is not specifically

                                      -22-
<PAGE>   27

prescribed herein, the Owner Trustee and the Trust Agent may for all purposes
hereof rely on a certificate, signed by the president or any vice president or
by the treasurer or other authorized officers of the relevant party, as to such
fact or matter and such certificate shall constitute full protection to the
Owner Trustee or the Trust Agent, as applicable, for any action taken or omitted
to be taken by it in good faith in reliance thereon.

     (b) In the exercise or administration of the trusts hereunder and in the
performance of its duties and obligations under this Agreement or the other
Basic Documents, the Owner Trustee and the Trust Agent each (i) may act directly
or through its agents or attorneys pursuant to agreements entered into with any
of them, and neither the Owner Trustee nor the Trust Agent shall be liable for
the conduct or misconduct of such agents or attorneys if such agents or
attorneys shall have been selected by the Owner Trustee or the Trust Agent with
reasonable care, and (ii) may consult with counsel, accountants and other
skilled persons to be selected with reasonable care and employed by it at the
sole expense of the Depositor. Neither the Owner Trustee nor the Trust Agent
shall be liable for anything done, suffered or omitted in good faith by it in
accordance with the written opinion or advice of any such counsel, accountants
or other such persons and not contrary to this Agreement or any other Basic
Document.

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

     Section 7.06 Owner Trustee and Trust Agent Not Liable for Residual Interest
Instruments, Notes or Contracts. The recitals contained herein and in the
Residual Interest Instruments (other than the respective signatures of the Owner
Trustee and the Trust Agent, and, in the case of the Trust Agent, the
certificate of authentication on the Residual Interest Instruments) shall be
taken as the statements of the Depositor, and neither the Owner Trustee nor the
Trust Agent assumes responsibility for the correctness thereof. Neither the
Owner Trustee nor the Trust Agent makes any representations as to the validity
or sufficiency of this Agreement, any other Basic Document or the Residual
Interest Instruments (other than the respective signatures of the Owner Trustee
and the Trust Agent, and, in the case of the Trust Agent, the certificate of
authentication on the Residual Interest Instruments) or the Notes, or of any
Contract or related documents. The Owner Trustee and the Trust Agent shall at no
time have any responsibility or liability for or with respect to the legality,
validity and enforceability of any Contract, or the perfection and priority of
any security interest created by any Contract in any Financed Vehicle or the
maintenance of any such perfection and priority, or for or with respect to the
sufficiency of the Trust Estate or its ability to generate the payments to be
distributed to Owners under this Agreement or the Noteholders under the
Indenture, including, without limitation, the existence, condition and ownership
of any Financed Vehicle; the existence and enforceability of any insurance
thereon; the existence and contents of any Contract on any computer or other
record thereof; the validity of the assignment of any Contract to the Trust or
of any intervening assignment; the completeness of any Contract; the performance
or enforcement of any Contract; the compliance by the Depositor, the Insurer or
the Servicer with any warranty or representation made under any Basic Document
or in any related document or the accuracy of any such warranty or
representation; or any action of the Administrator, the Indenture Trustee or the
Servicer or any subservicer taken in the name of the Owner Trustee or the Trust
Agent.

                                      -23-
<PAGE>   28

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

                                  ARTICLE VIII

                    COMPENSATION AND INDEMNIFICATION OF OWNER
                             TRUSTEE AND TRUST AGENT

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

     Section 8.02 Indemnification. The Owner Trustee and the Trust Agent shall
be entitled to indemnification as provided in the Administration Agreement and
the Sale and Servicing Agreement.

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

                                   ARTICLE IX

                         TERMINATION OF TRUST AGREEMENT

     Section 9.01 Termination of Trust Agreement.

     (a) This Agreement (other than Article Eight) and the Trust shall terminate
and be of no further force or effect upon the earlier of (i) final distribution
of all monies or other property or proceeds of the Trust Estate in accordance
with the terms of the Indenture, the Sale and Servicing Agreement and Article
Five and (ii) the expiration of 21 years from the death of the survivor of the
descendants of Joseph P. Kennedy, the late Ambassador of the United States to
the Court of St. James's, living on the date hereof. The bankruptcy,
liquidation, dissolution, death or incapacity of any Owner shall not (i) operate
to terminate this Agreement or the Trust, (ii) entitle such Owner's legal
representatives or heirs to claim an accounting or to take any action or
proceeding in any court for a partition or winding up of all or any part of the
Trust or Trust Estate or (iii) otherwise affect the rights, obligations and
liabilities of the parties hereto.

                                      -24-
<PAGE>   29

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

     (c) Notice of any termination of the Trust, specifying the Distribution
Date upon which Owners shall surrender their Residual Interest Instruments to
the Paying Agent for payment of the final distribution and cancellation, shall
be given by the Trust Agent by letter to Owners mailed within five Business Days
of receipt of notice of such termination from the Servicer given pursuant to
Section 8.01(b) of the Sale and Servicing Agreement, stating (i) the
Distribution Date upon or with respect to which final distribution in respect of
the Residual Interest Instruments shall be made upon presentation and surrender
of the Residual Interest Instruments at the office of the Paying Agent in the
City of New York therein designated, (ii) the amount of any such final payment
and (iii) that the Record Date otherwise applicable to such Distribution Date is
not applicable, payments being made only upon presentation and surrender of the
Residual Interest Instruments at the office of the Paying Agent therein
specified. The Trust Agent shall give such notice to the Certificate Registrar
(if other than the Trust Agent) and the Paying Agent (if other than the Trust
Agent) at the time such notice is given to Owners. Upon presentation and
surrender of the Residual Interest Instruments, the Paying Agent shall cause to
be distributed to Owners on a pro rata basis any amounts remaining in the Trust
upon the termination of this Agreement. In addition, the Trust Agent shall
notify the Rating Agencies upon the final distribution in respect of the
Residual Interest Instruments.

     (d) In the event that all of the Owners shall not surrender their Residual
Interest Instruments for cancellation within six months after the date specified
in the above-mentioned written notice, the Trust Agent shall give a second
written notice to the remaining Owners to surrender their Residual Interest
Instruments for cancellation and receive the final distribution with respect
thereto. If within one year after the second notice all the Owners shall not
have been surrendered for cancellation, the Trust Agent may take appropriate
steps, or may appoint an agent to take appropriate steps, to contact the
remaining Owners concerning surrender of their Residual Interest Instruments,
and the cost thereof shall be paid out of the funds and other assets that shall
remain subject to this Agreement.

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

                                    ARTICLE X

                   SUCCESSOR OWNER TRUSTEES, ADDITIONAL OWNER
                             TRUSTEE AND TRUST AGENT

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

                                      -25-
<PAGE>   30

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

     If at any time the Owner Trustee shall cease to be eligible in accordance
with the provisions of Section 10.01 and shall fail to resign after written
request therefor by the Administrator or the Insurer, or if at any time the
Owner Trustee shall be legally unable to act, or shall be adjudged bankrupt or
insolvent, or a receiver of the Owner Trustee or of its property shall be
appointed, or any public officer shall take charge or control of the Owner
Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, or if at any time the Owner Trustee shall have
breached any representation or warranty contained in Section 7.03(a)(iii)
(without regard to any knowledge qualification), then the Administrator or the
Insurer may remove the Owner Trustee. If the Owner Trustee shall be removed
under the authority of the immediately preceding sentence, the Administrator
shall promptly appoint a successor Owner Trustee acceptable to the Insurer by
written instrument, in duplicate, one copy of which instrument shall be
delivered to the outgoing Owner Trustee so removed and one copy to the successor
Owner Trustee, and shall pay all fees owed to the outgoing Owner Trustee.

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

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

                                      -26-
<PAGE>   31

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

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

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

     Section 10.05 Appointment of Co-Trustee or Separate Trustee.
Notwithstanding any other provisions of this Agreement, at any time, for the
purpose of meeting any legal requirements of any jurisdiction in which any part
of the Trust Estate or any Financed Vehicle may at the time be located, the
Administrator and the Owner Trustee acting jointly shall have the power and
shall execute and deliver all instruments to appoint one or more Persons
approved by the Administrator, the Insurer and Owner Trustee to act as
co-trustee, jointly with the Owner Trustee, or as separate trustee or separate
trustees, of all or any part of the Trust Estate, and to vest in such Person, in
such capacity, such title to the Trust or any part thereof and, subject to the
other provisions of this Section, such powers, duties, obligations, rights and
trusts as the Administrator and the Owner Trustee may consider necessary or
desirable. If the Administrator shall not have joined in such appointment within
15 days after the receipt by it of a request to do so, the Owner Trustee and the
Insurer shall have the power to make such appointment. No co-trustee or separate
trustee under this Agreement shall be required to meet the terms of eligibility
as a successor Owner Trustee, provided that such co-trustee or successor trustee
must be acceptable to the Rating Agencies and no notice of the appointment of
any co-trustee or separate trustee shall be required pursuant to Section 10.03.

     Section 10.06 Appointment of Trust Agent. Each separate trustee and
co-trustee shall, to the extent permitted by law, be appointed and act subject
to the following provisions and conditions:

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

                                      -27-
<PAGE>   32

     Trustee shall be incompetent or unqualified to perform such act or acts, in
     which event such rights, powers, duties and obligations (including the
     holding of title to the Trust Estate or any portion thereof in any such
     jurisdiction) shall be exercised and performed singly by such separate
     trustee or co-trustee, but solely at the direction of the Owner Trustee;

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

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

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

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

     The Owner Trustee on behalf of the Trust hereby appoints The Chase
Manhattan Bank as Trust Agent for the purpose of making the distributions from
the Payment Account to the persons entitled thereto pursuant to Section 4.03 of
the Sale and Servicing Agreement and for purposes of performing the other duties
specified to be performed by the Trust Agent under this Agreement and the other
Basic Documents. The Owner Trustee and the Trust Agent each agree that upon the
occurrence and continuation of an Insurer Default, the Trust Agent shall resign
and the Owner Trustee shall assume all rights, duties and obligations of the
Trust Agent under the Sale and Servicing Agreement and this Agreement, including
without limitation, the obligations of the Trust Agent pursuant to Sections
3.02, 3.03, 3.04, 3.05, 3.07, 3.08, 3.09, 3.10 and 5.01 hereof. The Trust Agent,
in its capacity as Trust Agent, shall not have any rights, duties or obligations
except as expressly provided in this Agreement and the Sale and Servicing
Agreement.

                                      -28-
<PAGE>   33

                                   ARTICLE XI

                                  MISCELLANEOUS

     Section 11.01 Supplements and Amendments.

     (a) This Agreement may be amended by the Depositor, the Owner Trustee and
the Trust Agent, with the prior written consent of the Insurer, but without the
consent of any of the Noteholders or the Owners, to cure any ambiguity, to
correct or supplement any provisions herein which may be inconsistent with any
of the provisions herein or make any other provisions with respect to matters or
questions arising hereunder that shall not be inconsistent with the provisions
of this Agreement; provided, however, that (i) any such action shall not
materially and adversely affect the interests of any Noteholder or Owner; (ii)
any such action shall be deemed not to materially and adversely affect the
interest of any Noteholder if the Person requesting the amendment obtains (A) a
letter from each Rating Agency to the effect that the amendment would not result
in a downgrading or withdrawal of the ratings then assigned to the Notes by such
Rating Agency or (B) an opinion of counsel to such effect; and (iii) any such
action shall be deemed not to materially and adversely affect the interest of
any Owner if the Person requesting such amendment obtains an opinion of counsel
to such effect, or Owners representing 100% of the Percentage Interests consent
to such amendment.

     (b) Subject to Section 11.14, this Agreement may also be amended from time
to time with the prior written consent of the Insurer by the Depositor, the
Owner Trustee and the Trust Agent, with the consent of Noteholders representing
not less than 51% of the Outstanding Amount acting together as a single class
(which consent of any Holder of a Note given pursuant to this Section or
pursuant to any other provision of this Agreement shall be conclusive and
binding on such Holder and on all future Holders of such Note issued upon the
transfer thereof or in exchange thereof or in lieu thereof whether or not
notation of such consent is made thereon) and, if such amendment materially and
adversely affects the interests of the Owners, with the consent of Owners
evidencing not less than 51% of the Percentage Interests, 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 Owners; 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 Contracts or distributions that shall be
required to be made for the benefit of the Noteholders or Owners or (ii) reduce
the aforesaid percentage of the Outstanding Amount of the Notes or Percentage
Interest of the Owners required to consent to any such amendment, without the
consent of the Owners of all outstanding Notes and Residual Interest
Instruments.

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

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

                                      -29-
<PAGE>   34

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

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

     Section 11.02 [RESERVED].

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

     Section 11.04 Notices. All demands, notices and communications under this
Agreement shall be in writing personally delivered or mailed by certified mail,
return receipt requested, and shall be deemed to have been duly given upon
receipt in the case of (a) the Owner Trustee, at the Owner Trustee Corporate
Trust Office; (b) the Depositor, at Onyx Acceptance Financial Corporation, 27051
Towne Centre Drive, Suite 200, Foothill Ranch, California 92610; (c) the
Insurer, at MBIA Insurance Corporation, 113 King Street, Armonk, New York 10504;
(d) the Trust Agent, at The Chase Manhattan Bank, Capital Markets Fiduciary
Services, 450 West 33rd Street, 14th Floor, New York, New York 10001-2697; (e)
the Servicer or the Administrator, at Onyx Acceptance Corporation, 27051 Towne
Centre Drive, Suite 100, Foothill Ranch, California 92610 or (f) as to each
party, at such other address as shall be designated by such party in a written
notice to each other party. Any notice required or permitted to be mailed to an
Owner shall be given by first-class mail, postage prepaid, at the address of
such Owner as shown in the Certificate Register. Any notice so mailed within the
time prescribed in this Agreement shall be conclusively presumed to have been
duly given, whether or not the Owner receives such notice.

     Section 11.05 Severability of Provisions. If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions or
terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement or of the Residual
Interest Instruments or the rights of the Owners thereof.

                                      -30-
<PAGE>   35

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

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

     Section 11.08 No Petition.

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

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

     Section 11.09 No Recourse. Each Owner by accepting a Residual Interest
Instrument acknowledges that such Owner's Residual Interest Instruments
represent a beneficial interest in the Trust only and does not represent an
interest in or obligation of the Depositor, the Servicer, the Seller, the
Administrator, the Owner Trustee, the Trust Agent, the Indenture Trustee or any
of their respective Affiliates and no recourse may be had against such parties
or their assets, except as may be expressly set forth or contemplated in this
Agreement, the Residual Interest Instruments or the other Basic Documents.

     Section 11.10 Residual Interest Instruments Nonassessable and Fully Paid.
Owners shall not be personally liable for obligations of the Trust. Except as
expressly provided herein, the interests represented by the Residual Interest
Instruments shall be nonassessable for any losses or expenses of the Trust or
for any reason whatsoever, and, upon authentication thereof pursuant to Section
3.03, the Residual Interest Instruments shall be deemed fully paid.

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

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

                                      -31-
<PAGE>   36

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

     Section 11.14 Certain Matters Regarding the Insurer. So long as an Insurer
Default shall not have occurred and be continuing, the Insurer shall have the
right to exercise all rights, including voting rights, which the Noteholders or
Owners are entitled to exercise pursuant to this Agreement, without any consent
of such Noteholders or Owners; provided, however, that without the consent of
each Noteholder or Owner affected thereby, the Insurer shall not exercise such
rights to amend this Agreement in any manner that would (i) reduce the amount
of, or delay the timing of, collections of payments on the Contracts or
distributions which are required to be made on any Note or Residual Interest
Instrument, (ii) adversely affect in any material respect the interests of the
Owners of any Notes or Residual Interest Instruments, or (iii) alter the rights
of any such Owner to consent to such amendment.

     Notwithstanding any provision in this Agreement (except Section 4.06) to
the contrary, in the event an Insurer Default shall have occurred and be
continuing, the Insurer shall not have the right to take any action under this
Agreement or to control or direct the actions of the Trust, the Depositor, the
Owner Trustee or the Trust Agent pursuant to the terms of this Agreement, nor
shall the consent of the Insurer be required with respect to any action (or
waiver of a right to take action) to be taken by the Trust, the Depositor, the
Owner Trustee, the Trust Agent or the Owners of the Notes or the Residual
Interest Instruments; provided, that the consent of the Insurer shall be
required at all times with respect to any amendment of this Agreement; and
provided further, that notwithstanding the foregoing, each of the provisions in
Section 4.06(a) of this Agreement shall continue to be effective notwithstanding
that an Insurer Default may have occurred and be continuing.

     Section 11.15 Fiduciary Duties. The duties and responsibilities of the
Owner Trustee and the Trust Agent shall be limited to those expressly provided
for in this Agreement. The parties hereto agree that except for the purpose of
the foregoing sentence, neither the Owner Trustee nor the Trust Agent shall have
management responsibilities or owe any fiduciary duties to the Insurer.

                                      -32-
<PAGE>   37

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

                                          ONYX ACCEPTANCE FINANCIAL CORPORATION,
                                          as Depositor

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

                                          BANKERS TRUST (DELAWARE),
                                          as Owner Trustee

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

                                          THE CHASE MANHATTAN BANK,
                                          as Trust Agent

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

                                      -33-

<PAGE>   38

                                                                       EXHIBIT A

                                     FORM OF
                             CERTIFICATE OF TRUST OF
                       ONYX ACCEPTANCE OWNER TRUST 2001-B

     This Certificate of Trust of Onyx Acceptance Owner Trust 2001-B (the
"TRUST") is being duly executed and filed by the undersigned, as trustees, to
form a business trust under the Delaware Business Trust Act (12 Del. Code,
Section 3801 et seq. (the "ACT")).

     1. Name. The name of the business trust formed hereby is Onyx Acceptance
Owner Trust 2001-B.

     2. Delaware Trustee. The name and business address of the trustee of the
Trust in the State of Delaware is Bankers Trust Company (Delaware), E.A. Delle
Donne Corporate Center, 1011 Centre Road, Suite 200, Wilmington, Delaware
19805-1266, Attention: Corporate Trust Administration.

     3. Effective Date. This Certificate of Trust shall be effective May 18,
2001.

     IN WITNESS WHEREOF, the undersigned has duly executed this Certificate of
Trust in accordance with Section 3811(a)(1) of the Act.

                                               BANKERS TRUST COMPANY (DELAWARE),
                                               not in its individual capacity
                                               but solely as Owner Trustee

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

<PAGE>   39

                                                                       EXHIBIT B

                      FORM OF RESIDUAL INTEREST INSTRUMENT

                              [Begins on Next Page]<PAGE>   1
                                                                    EXHIBIT 10.2

                          SALE AND SERVICING AGREEMENT

                                     between

                       ONYX ACCEPTANCE OWNER TRUST 2001-B
                                   as Issuer,

                      ONYX ACCEPTANCE FINANCIAL CORPORATION
                                   as Seller,

                           ONYX ACCEPTANCE CORPORATION
                                   as Servicer

                                       and

                            THE CHASE MANHATTAN BANK
                     as Indenture Trustee and as Trust Agent

                             Dated as of May 1, 2001

<PAGE>   2

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                               PAGE
                                                                               ----
<S>                                                                            <C>
ARTICLE I - DEFINITIONS..........................................................1
  SECTION 1.01.  DEFINITIONS.....................................................1
  SECTION 1.02.  USAGE OF TERMS.................................................19
  SECTION 1.03.  SECTION REFERENCES.............................................19
  SECTION 1.04.  CALCULATIONS...................................................19
  SECTION 1.05.  ACCOUNTING TERMS...............................................20

ARTICLE II - CONVEYANCE OF CONTRACTS; REPRESENTATIONS AND WARRANTIES OF
               THE SELLER.......................................................20
  SECTION 2.01.  CONVEYANCE OF CONTRACTS........................................20
  SECTION 2.02.  REPRESENTATIONS AND WARRANTIES OF THE SELLER...................25
  SECTION 2.03.  REPURCHASE OF CERTAIN CONTRACTS................................36
  SECTION 2.04.  CUSTODY OF CONTRACT FILES......................................37
  SECTION 2.05.  DUTIES OF SERVICER RELATING TO THE CONTRACTS...................38
  SECTION 2.06.  INSTRUCTIONS; AUTHORITY TO ACT.................................39
  SECTION 2.07.  INDEMNIFICATION................................................39
  SECTION 2.08.  EFFECTIVE PERIOD AND TERMINATION...............................40
  SECTION 2.09.  NONPETITION COVENANT...........................................40
  SECTION 2.10.  COLLECTING TITLE DOCUMENTS NOT DELIVERED AT THE CLOSING
                 DATE...........................................................41

ARTICLE III - ADMINISTRATION AND SERVICING OF CONTRACTS.........................41
  SECTION 3.01.  DUTIES OF SERVICER.............................................41
  SECTION 3.02.  COLLECTION OF CONTRACT PAYMENTS................................43
  SECTION 3.03.  REALIZATION UPON CONTRACTS.....................................44
  SECTION 3.04.  INSURANCE......................................................44
  SECTION 3.05.  MAINTENANCE OF SECURITY INTERESTS IN FINANCED VEHICLES.........44
  SECTION 3.06.  COVENANTS, REPRESENTATIONS AND WARRANTIES OF SERVICER..........45
  SECTION 3.07.  PURCHASE OF CONTRACTS UPON BREACH BY SERVICER..................47
  SECTION 3.08.  SERVICING COMPENSATION.........................................47
  SECTION 3.09.  REPORTING BY THE SERVICER......................................48
  SECTION 3.10.  ANNUAL STATEMENT AS TO COMPLIANCE..............................51
  SECTION 3.11.  ANNUAL INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT'S REPORT........51
  SECTION 3.12.  ACCESS TO CERTAIN DOCUMENTATION AND INFORMATION REGARDING
                 CONTRACTS......................................................51
  SECTION 3.13.  FIDELITY BOND..................................................52
  SECTION 3.14.  INDEMNIFICATION; THIRD PARTY CLAIMS............................52
  SECTION 3.15.  REPORTS TO NOTEHOLDERS AND THE RATING AGENCIES.................52
  SECTION 3.16.  ACCESS TO LIST OF NOTEHOLDERS' NAMES AND ADDRESSES.............52
</TABLE>

                                        i

<PAGE>   3

                           TABLE OF CONTENTS (Cont'd.)
<TABLE>
<CAPTION>
                                                                               PAGE
                                                                               ----
<S>                                                                            <C>
ARTICLE IV - DISTRIBUTIONS; SPREAD ACCOUNT; STATEMENTS TO NOTEHOLDERS...........53
  SECTION 4.01.  ESTABLISHMENT OF TRUST ACCOUNTS................................53
  SECTION 4.02.  COLLECTIONS; TRANSFERS TO PAYAHEAD ACCOUNT; REALIZATION UPON
                 POLICY; NET DEPOSITS; TRANSFERS TO PAYMENT ACCOUNT.............55
  SECTION 4.03.  DISTRIBUTIONS..................................................56
  SECTION 4.04.  SPREAD ACCOUNT.................................................58
  SECTION 4.05.  STATEMENTS TO NOTEHOLDERS......................................60
  SECTION 4.06.  CAPITALIZED INTEREST ACCOUNT...................................62
  SECTION 4.07.  PREFUNDING ACCOUNT.............................................62
  SECTION 4.08.  REQUIREMENTS RELATING TO PREFUNDING ACCOUNT....................63

ARTICLE V - THE SELLER..........................................................63
  SECTION 5.01.  LIABILITY OF SELLER; INDEMNITIES...............................63
  SECTION 5.02.  MERGER OR CONSOLIDATION OF, OR ASSUMPTION OF THE OBLIGATIONS
                 OF, SELLER; CERTAIN LIMITATIONS................................63
  SECTION 5.03.  LIMITATION ON LIABILITY OF SELLER AND OTHERS...................64
  SECTION 5.04.  SELLER NOT TO RESIGN...........................................64
  SECTION 5.05.  SELLER MAY OWN NOTES...........................................64

ARTICLE VI - THE SERVICER.......................................................64
  SECTION 6.01.  LIABILITY OF SERVICER; INDEMNITIES.............................64
  SECTION 6.02.  CORPORATE EXISTENCE; STATUS AS SERVICER; MERGER................66
  SECTION 6.03.  PERFORMANCE OF OBLIGATIONS.....................................66
  SECTION 6.04.  SERVICER NOT TO RESIGN; ASSIGNMENT.............................66
  SECTION 6.05.  LIMITATION ON LIABILITY OF SERVICER AND OTHERS.................67

ARTICLE VII - DEFAULT...........................................................68
  SECTION 7.01.  EVENTS OF DEFAULT..............................................68
  SECTION 7.02.  TRUSTEE TO ACT; APPOINTMENT OF SUCCESSOR.......................70
  SECTION 7.03.  NOTIFICATION TO NOTEHOLDERS AND RESIDUAL INTERESTHOLDERS.......70
  SECTION 7.04.  WAIVER OF PAST DEFAULTS........................................70
  SECTION 7.05.  INSURER DIRECTION OF INSOLVENCY PROCEEDINGS....................71

ARTICLE VIII - TERMINATION......................................................71
  SECTION 8.01.  OPTIONAL PURCHASE OF ALL CONTRACTS; SATISFACTION AND
                 DISCHARGE OF THE INDENTURE.....................................71
  SECTION 8.02.  TRANSFER TO THE INSURER........................................72
</TABLE>

                                       ii

<PAGE>   4
                           TABLE OF CONTENTS (Cont'd.)
<TABLE>
<CAPTION>
                                                                               PAGE
                                                                               ----
<S>                                                                            <C>
ARTICLE IX - MISCELLANEOUS......................................................72
  SECTION 9.01.  AMENDMENT......................................................72
  SECTION 9.02.  PROTECTION OF TITLE TO TRUST...................................73
  SECTION 9.03.  GOVERNING LAW..................................................75
  SECTION 9.04.  NOTICES........................................................75
  SECTION 9.05.  SEVERABILITY OF PROVISIONS.....................................76
  SECTION 9.06.  ASSIGNMENT.....................................................76
  SECTION 9.07.  THIRD PARTY BENEFICIARIES......................................76
  SECTION 9.08.  CERTAIN MATTERS RELATING TO THE INSURER........................77
  SECTION 9.09.  HEADINGS.......................................................77
  SECTION 9.10.  ASSIGNMENT BY ISSUER...........................................77
  SECTION 9.11.  LIMITATION OF LIABILITY OF CERTAIN PARTIES.....................77
  SECTION 9.12.  ACKNOWLEDGMENT OF PARTIES; INSURER DEFENSE COSTS...............77

                                    EXHIBITS

  Schedule I-A - Schedule of Initial Contracts
  Schedule I-B - Schedule of Subsequent Contracts
  Schedule II  - Location and Account Numbers of Trust Accounts
  Exhibit A    - Form of Appointment of Custodian
  Exhibit B    - Form of Policy
  Exhibit C-1  - Form of Transfer Certificate
  Exhibit C-2  - Form of Prefunding Closing Date Certificate
</TABLE>

                                       iii

<PAGE>   5

     This SALE AND SERVICING AGREEMENT, dated as of May 1, 2001 (this
"AGREEMENT"), is between Onyx Acceptance Owner Trust 2001-B (the "ISSUER" or the
"TRUST"), Onyx Acceptance Financial Corporation (the "SELLER"), Onyx Acceptance
Corporation ("ONYX" or, in its capacity as servicer, the "SERVICER" or, in its
capacity as custodian, the "CUSTODIAN") and The Chase Manhattan Bank, as the
Indenture Trustee on behalf of the Noteholders (in such capacity, the "INDENTURE
TRUSTEE"), and as the Trust Agent on behalf of the Owner Trustee (in such
capacity, the "TRUST AGENT") .

     In consideration of the premises and the mutual covenants herein contained,
the parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

     SECTION 1.01. DEFINITIONS.

     Whenever used in this Agreement, the following words and phrases, unless
the context otherwise requires, shall have the following meanings:

     "ACCELERATED PRINCIPAL COMMENCEMENT DATE" means the first Distribution Date
on which (i) the Pool Balance as of such Distribution Date is equal to or less
than 15% of the Original Pool Balance and (ii) the amount of cash on deposit in
the Spread Account together with the other components of the Spread Account is
equal to or greater than the Spread Account Maximum (after giving effect to the
distribution pursuant to Section 4.03(viii) of this Agreement on such
Distribution Date).

     "ACCELERATED PRINCIPAL DISTRIBUTABLE AMOUNT" means, with respect to any
Distribution Date occurring on or after the Accelerated Principal Commencement
Date, the amount which would remain on deposit in the Payment Account for such
Distribution Date after giving effect to distributions pursuant to Section
4.03(i) through (viii) of this Agreement without regard to the inclusion of such
amount as part of the Note Principal Distributable Amount. The Accelerated
Principal Distributable Amount shall be included in the Note Principal
Distributable Amount until all of the Notes have been paid in full.

     "ACTUARIAL CONTRACT" means a Contract pursuant to which the allocation of
each payment between interest and principal is calculated using the Actuarial
Method.

     "ACTUARIAL METHOD" means the method of allocating principal and interest
payments on a Contract whereby amortization of the Contract is determined over a
series of fixed level payment monthly installments, and each monthly
installment, including the monthly installment representing the final payment on
the Contract, consists of an amount of interest equal to 1/12 of the APR of the
Contract multiplied by the unpaid principal balance of the Contract, and an
amount of principal equal to the remainder of the monthly payment.

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

                                      -1-
<PAGE>   6

     "AMOUNT FINANCED" means, with respect to a Contract, the aggregate amount
advanced under such Contract toward the purchase price of the related Financed
Vehicle and related costs, including amounts advanced in respect of accessories,
insurance premiums, extended service or warranty contracts and other items
customarily financed as part of retail automobile installment sales contracts.

     "APPOINTMENT OF CUSTODIAN" means the letter agreement between the Indenture
Trustee, the Insurer and the Servicer substantially in the form attached hereto
as Exhibit A.

     "APR" of a Contract means the annual percentage rate used to determine the
total interest expected to be charged over the term of a Contract as of its
inception, as shown on such Contract.

     "BASIC DOCUMENTS" shall have the meaning specified in the Indenture.

     "BLANKET INSURANCE POLICY" means the Creditors Comprehensive Single
Interest Insurance Policy covering losses with respect to the Contracts, which
policy has been issued by Great American Insurance Company and the Seller's
rights in which, with respect to the Contracts, have been validly assigned to
the Indenture Trustee acting on behalf of the Trust.

     "BUSINESS DAY" means any day other than a Saturday, a Sunday or other day
on which commercial banking institutions or savings associations located in Los
Angeles, California or New York, New York are authorized or obligated by law,
regulation, executive order or governmental decree to be closed.

     "CALCULATION DAY" means the last day of each calendar month.

     "CAPITALIZED INTEREST ACCOUNT" means the account designated as such and
established pursuant to Section 4.01 and maintained pursuant to Section 4.06.

     "CAPITALIZED INTEREST AMOUNT" means, with respect to each Distribution Date
following a Collection Period during which amounts are on deposit in the
Prefunding Account, an amount equal to the greater of:

          (a) the sum of the Note Interest Distributable Amount for such
     Distribution Date, plus the sum of the fees payable to the Owner Trustee,
     the Indenture Trustee and the Trust Agent and the premium payable to the
     Insurer for such Distribution Date, in each case, allocable to the balance
     in the Prefunding Account at the beginning of the related Collection
     Period, on a pro rata basis, minus the earnings received by the Indenture
     Trustee on behalf of the Trust during the related Collection Period from
     investment of the funds on deposit in the Prefunding Account; and

          (b) the amount, if any, by which (i) the sum of the Servicing Fees,
     the Note Interest Distributable Amount, the fees payable to the Owner
     Trustee, the Indenture Trustee and the Trust Agent and the premium payable
     to the Insurer for such Distribution Date exceeds (ii) Net Collections plus
     the earnings received by the Indenture Trustee on behalf of the Trust
     during the related Collection Period from investment of the funds on
     deposit in the Prefunding Account.

                                      -2-
<PAGE>   7

     "CERTIFICATE REGISTER" shall have the meaning specified in the Trust
Agreement.

     "CLASS" means all Notes whose form is identical except for variation in
denomination, principal amount or owner.

     "CLASS A-1 FINAL SCHEDULED DISTRIBUTION DATE" means the Distribution Date
occurring in May 2002.

     "CLASS A-1 NOTE" means any Class A-1 Note in the form attached to the
Indenture as Exhibit B.

     "CLASS A-1 RATE" means 4.02875% per annum.

     "CLASS A-2 FINAL SCHEDULED DISTRIBUTION DATE" means the Distribution Date
occurring in April 2004.

     "CLASS A-2 NOTE" means any Class A-2 Note in the form attached to the
Indenture as Exhibit C.

     "CLASS A-2 RATE" means 4.43% per annum.

     "CLASS A-3 FINAL SCHEDULED DISTRIBUTION DATE" means the Distribution Date
occurring in September 2005.

     "CLASS A-3 NOTE" means any Class A-3 Note in the form attached to the
Indenture as Exhibit D.

     "CLASS A-3 RATE" means 4.97% per annum.

     "CLASS A-4 FINAL SCHEDULED DISTRIBUTION DATE" means the Distribution Date
occurring in November 2007.

     "CLASS A-4 NOTE" means any Class A-4 Note in the form attached to the
Indenture as Exhibit E.

     "CLASS A-4 RATE" means 5.49% per annum.

     "CLASS A NOTES" means the Class A-1 Notes, the Class A-2 Notes, the Class
A-3 Notes and the Class A-4 Notes.

     "CLEARING ACCOUNT" means Account No. 4159359173 in the name of the Seller
maintained at Wells Fargo Bank, N.A.

     "CLOSING DATE" means May 18, 2001.

                                      -3-
<PAGE>   8

     "COLLECTION ACCOUNT" means the account established and maintained as such
pursuant to Section 4.01.

     "COLLECTION PERIOD" means, with respect to any Distribution Date, the
calendar month preceding the month in which such Distribution Date occurs;
provided that with respect to Liquidated Contracts, the Collection Period will
be the period from but excluding the sixth Business Day preceding the
immediately preceding Distribution Date to and including the sixth Business Day
preceding such Distribution Date. With respect to the first Distribution Date
the "Collection Period" for Liquidated Contracts shall be the period from and
including the related Cut-Off Date to and including the sixth Business Day
preceding such first Distribution Date.

     "CONTRACT" means each retail installment sales contract and security
agreement or installment loan agreement and security agreement and all proceeds
thereof and payments thereunder, which contract or agreement has been executed
by an Obligor and pursuant to which such Obligor purchased or financed the
Financed Vehicle described therein, agreed to pay the deferred purchase price
(i.e., the purchase price net of any down payment) or amount borrowed, together
with interest, as therein provided in connection with such purchase or loan,
granted a security interest in such Financed Vehicle, and undertook to perform
certain other obligations as specified in such contract or agreement. Each
Contract shall have been (i) originated by a Dealer and assigned to Onyx in
accordance with the assignment provisions set forth therein, (ii) subsequently
conveyed by Onyx to the Seller pursuant to the Purchase Agreement and (iii)
subsequently conveyed by the Seller to the Issuer pursuant to this Agreement. As
used herein, "Contracts" means the Initial Contracts, the Subsequent Contracts
and the Prefunded Contracts.

     "CONTRACT DOCUMENTS" means, with respect to each Contract, (a) the Contract
and the original credit application fully executed by the Obligor thereunder;
(b) either (i) the original Title Document for the related Financed Vehicle or a
duplicate copy thereof issued or certified by the Registrar of Titles which
issued the original thereof (or, with respect to certain of the Financed
Vehicles, evidence of the electronic Title Document), together with evidence of
perfection of the security interest in the related Financed Vehicle granted by
such Contract, as determined by the Servicer to be permitted or required to
perfect such security interest under the laws of the applicable jurisdiction, or
(ii) written evidence that the Title Document for such Financed Vehicle showing
Onyx as first lienholder has been applied for; (c) any agreement(s) modifying
the Contract (including, without limitation, any extension agreement(s)); (d)
any signed agreement by an Obligor to provide insurance with Onyx listed as loss
payee and (e) any documents specifically relating to the Obligor or the Financed
Vehicle. The documents referred to above, other than the Contracts, to the
extent expressly permitted by the Insurer in writing, may be maintained in
microfiche or electronic form.

     "CONTRACT FILES" means all papers and computerized records customarily kept
by the Servicer in servicing contracts and loans comparable to the Contracts.

     "CONTRACT NUMBER" means, with respect to any Contract included in the
Trust, the number assigned to such Contract by the Servicer, which number is set
forth in the related Schedule of Contracts.

                                      -4-
<PAGE>   9

     "CORPORATE TRUST OFFICE" means the principal office of the Indenture
Trustee at which at any particular time its corporate trust business shall be
administered, which office at the date of the execution of this Agreement is
located at 450 West 33rd Street, 14th Floor, New York, New York 10001-2697,
Attention: Institutional Trust Services; or at such other address as the
Indenture Trustee may designate from time to time by notice to the Noteholders,
the Insurer, the Servicer and the Seller.

     "CRAM DOWN LOSS" means, with respect to a Contract if a court of
appropriate jurisdiction in an insolvency proceeding shall have issued an order
reducing the amount owed on such Contract or otherwise modifying or
restructuring the scheduled payments to be made on such Contract, an amount
equal to (i) the excess of the Principal Balance of such Contract immediately
prior to such order over the Principal Balance of such Contract as so reduced
and/or (ii) if such court shall have issued an order reducing the effective rate
of interest on such Contract, the excess of the Principal Balance of such
Contract immediately prior to such order over the net present value (using as
the discount rate the higher of the annual percentage rate on such Contract or
the rate of interest, if any, specified by the court in such order) of the
scheduled payments as so modified or restructured. A Cram Down Loss shall be
deemed to have occurred on the date of issuance of such order.

     "CUSTODIAN" means Onyx until such time, if any, a Successor Custodian is
appointed and thereafter means such Successor Custodian.

     "CUT-OFF DATE" means, as applicable, (i) the Initial Cut-Off Date, with
respect to the Initial Contracts, (ii) the Subsequent Cut-Off Date, with respect
to the Subsequent Contracts or (iii) the Prefunding Cut-Off Date with respect to
the Prefunded Contracts.

     "DEALER" means the seller of a Financed Vehicle, which seller originated
and assigned the related Contract.

     "DEFAULT" means any occurrence which with the giving of notice or the lapse
of time or both would become a Servicer Default.

     "DEFAULTED CONTRACT" means, with respect to any Collection Period, a
Contract (i) which is, at the end of such Collection Period, delinquent in the
amount of at least two monthly installments of Monthly P&I or (ii) with respect
to which the related Financed Vehicle has been repossessed or repossession
efforts with respect to the related Financed Vehicle have been commenced.

     "DEFICIENCY AMOUNT" means as of any Distribution Date, the amount by which
(i) the sum of the amounts set forth in Section 4.03(i) though (iv) with respect
to such Distribution Date exceeds (ii) the amount of Net Collections (plus
amounts transferred from the Prefunding Account representing earnings from
investments therein and amounts transferred from the Capitalized Interest
Account, in each case to the Payment Account) available with respect to such
Distribution Date and the amount on deposit in the Spread Account as of such
Distribution Date.

     "DEFICIENCY NOTICE" means, with respect to any Distribution Date, the
notice delivered pursuant to Section 4.02(c) by the Servicer to the Indenture
Trustee, with a copy to the Insurer and the Trust Agent.

     "DEFINITIVE NOTES" means Notes issued in fully registered, certificated
form to Noteholders.

                                      -5-
<PAGE>   10

     "DEPOSITOR" means the Seller in its capacity as Depositor under the Trust
Agreement, and its successors.

     "DISTRIBUTION DATE" means the 15th day of each month or if such date shall
not be a Business Day, the following Business Day, commencing on June 15, 2001.

     "DISTRIBUTION DATE STATEMENT" shall have the meaning specified in Section
3.09(a).

     "DUE DATE" means, as to any Contract, the date upon which an installment of
Monthly P&I is due.

     "ELIGIBLE ACCOUNT" means (i) a trust account that is either (a) maintained
by the Indenture Trustee, (b) maintained with a depository institution or trust
company the commercial paper or other short-term debt obligations of which have
credit ratings from Standard & Poor's at least equal to "A-1" and from Moody's
equal to "P-1," which account is fully insured up to applicable limits by the
Federal Deposit Insurance Corporation or (c) maintained with a depository
institution acceptable to the Insurer, as evidenced by a letter from the Insurer
to that effect or (ii) a general ledger account or deposit account at a
depository institution acceptable to the Insurer, as evidenced by a letter from
the Insurer to that effect.

     "ELIGIBLE INVESTMENTS" means any one or more of the following obligations
or securities, all of which shall be denominated in United States dollars:

          (a) direct obligations of, and obligations fully guaranteed as to
     timely payment of principal and interest by, the United States of America
     or any agency or instrumentality of the United States of America the
     obligations of which are backed by the full faith and credit of the United
     States of America and, to the extent, at the time of investment, acceptable
     to the Insurer and each Rating Agency for securities having a rating
     equivalent to the rating of the Notes at the Closing Date, the direct
     obligations of, or obligations fully guaranteed by, the Federal Home Loan
     Mortgage Corporation and the Federal National Mortgage Association;

          (b) demand and time deposits in, certificates of deposit of, banker's
     acceptances issued by, or federal funds sold by any depository institution
     or trust company (including the Indenture Trustee or the Owner Trustee)
     incorporated under the laws of the United States of America or any State
     and subject to supervision and examination by Federal and/or State banking
     authorities, so long as at the time of such investment or contractual
     commitment providing for such investment either (i) the long-term,
     unsecured debt obligations of such depository institution or trust company
     have credit ratings from Standard & Poor's at least equal to "AA-" and from
     Moody's at least equal to "Aa2" or (ii) such depository institution is
     acceptable to the Insurer as evidenced by a letter from the Insurer to the
     Indenture Trustee;

          (c) repurchase obligations with respect to (i) any security described
     in clause (a) above or (ii) any other security issued or guaranteed as to
     timely payment of principal and interest by an agency or instrumentality of
     the United States of America, in either case entered into with any
     depository institution or trust company (including the Indenture Trustee
     and the Owner Trustee), acting as principal, described in clause (b) above;

                                      -6-
<PAGE>   11

          (d) securities bearing interest or sold at a discount issued by any
     corporation incorporated under the laws of the United States of America or
     any state thereof which at the time of such investment or contractual
     commitment providing for such investment have long-term, unsecured debt
     obligations rated by Standard & Poor's "AA-" or better and by Moody's "Aa2"
     or better; provided, however, that securities issued by any corporation
     will not be Eligible Investments to the extent that investment therein will
     cause the then outstanding principal amount of securities issued by such
     corporation and held as part of the Trust to exceed 10% of the aggregate
     Outstanding Principal Balances of the Contracts and all amounts of Eligible
     Investments held as part of the Trust;

          (e) commercial paper having the highest rating by Standard & Poor's
     and Moody's at the time of such investment;

          (f) investments in money market funds or money market mutual funds
     having a rating from Standard & Poor's and Moody's in the highest
     investment category granted thereby, including funds for which the
     Indenture Trustee, the Owner Trustee or any of their respective Affiliates
     is investment manager or advisor; and

          (g) such other obligations or securities acceptable to the Insurer, as
     evidenced by a letter from the Insurer to the Indenture Trustee (which
     acceptability may be revoked at any time by the Insurer), a copy of which
     shall be provided by the Indenture Trustee to the Rating Agencies.

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

     "FINANCED VEHICLE" means, as to any Contract, an automobile, light-duty
truck or van, together with all accessions thereto, securing the related
Obligor's indebtedness under such Contract.

     "FISCAL AGENT" shall have the meaning set forth in the Policy.

     "FULL PREPAYMENT" means any of the following: (a) with respect to any
Contract other than a Contract referred to in clause (ii), (iii) or (iv) of the
definition of the term "Liquidated Contract", payment by or on behalf of the
Obligor of the total amount required by the terms of such Contract to be paid
thereunder, which amount shall be at least equal to the sum of (i) 100% of the
Principal Balance of such Contract, (ii) interest accrued thereon to the date of
such payment at the APR; and (iii) any overdue amounts; or (b) with respect to
any Contract, payment by the Seller to the Indenture Trustee of the Purchase
Amount of such Contract in connection with the purchase of such Contract
pursuant to Section 2.03, or payment by the Servicer of the Purchase Amount of
such Contract in connection with the purchase of such Contract pursuant to
Section 3.07 or the purchase of all Contracts pursuant to Section 8.01.

     "FUNDED CONTRACTS" means all Initial Contracts and Subsequent Contracts.

     "FUNDING PERIOD" shall have the meaning specified in Section 4.08(a).

     "HOLDER" or "NOTEHOLDER" means, with respect to a Note, the Person in whose
name such Note is registered in the Note Register.

     "INDEMNIFICATION AGREEMENT" shall have the meaning specified in the
Insurance Agreement.

                                      -7-
<PAGE>   12

     "INDENTURE" means the Indenture, dated as of the date hereof, between the
Issuer and the Indenture Trustee.

     "INDENTURE EVENT OF DEFAULT" means an Event of Default as set forth in
Section 5.01 of the Indenture.

     "INDENTURE TRUSTEE" means The Chase Manhattan Bank, not in its individual
capacity but solely as the Indenture Trustee under the Indenture, its successors
in interest and any successor Indenture Trustee under the Indenture.

     "INITIAL CAPITALIZED INTEREST AMOUNT" means $360,130.00.

     "INITIAL CASH DEPOSIT" shall have the meaning specified in the Insurance
Agreement.

     "INITIAL CONTRACTS" means the Contracts designated as such in Schedule I-A
attached hereto.

     "INITIAL CUT-OFF DATE" means May 1, 2001.

     "INSOLVENCY PROCEEDING" shall have the meaning specified in Section 7.05.

     "INSURANCE AGREEMENT" means the Insurance and Reimbursement Agreement, to
be dated as of the Closing Date, among the Insurer, the Seller, Onyx and the
Servicer, as amended, modified or restated from time to time.

     "INSURER" means MBIA Insurance Corporation or its successors in interest.

     "INSURER DEFAULT" means the occurrence and continuance of any of the
following:

          (i) the Insurer shall have failed to make a payment required to be
     made under the Policy in accordance with its terms;

          (ii) the Insurer shall have (a) filed a petition or commenced any case
     or proceeding under any provision or chapter of the United States
     Bankruptcy Code or any other similar federal or state law relating to
     insolvency, bankruptcy, rehabilitation, liquidation or reorganization, (b)
     made a general assignment for the benefit of its creditors or (c) had an
     order for relief entered against it under the United States Bankruptcy Code
     or any other similar federal or state law relating to insolvency,
     bankruptcy, rehabilitation, liquidation or reorganization which is final
     and nonappealable; or

          (iii) a court of competent jurisdiction, the New York Department of
     Insurance or other competent regulatory authority shall have entered a
     final and nonappealable order, judgment or decree (a) appointing a
     custodian, trustee, agent or receiver for the Insurer or for all or any
     material portion of its property or (b) authorizing the taking of
     possession by a custodian, trustee, agent or receiver of the Insurer (or
     the taking of possession of all or any material portion of the property of
     the Insurer).

                                      -8-
<PAGE>   13

     "INSURER DEFENSE COSTS" means, all costs and expenses of the Insurer
(including costs and expenses of the Trust Agent, the Indenture Trustee or the
Owner Trustee that the Insurer may have paid) in connection with any action,
proceeding or investigation that could adversely affect the Trust or the Trust
Estate or the rights or obligations of the Insurer under any of the
Indemnification Agreement (as defined in the Insurance Agreement), the Basic
Documents or any other document delivered with respect thereto, including
(without limitation) any judgment or settlement entered into affecting the
Insurer or the Insurer's interests, together with interest thereon at a rate
equal to the Base Rate (as defined in the Insurance Agreement) from time to time
in effect plus 1% from the date such expenses are incurred up to but not
including the date such expenses are paid.

     "INTEREST ACCRUAL PERIOD" means, with respect to any Distribution Date, the
period from and including the Distribution Date immediately preceding such
Distribution Date (or, in the case of the first Distribution Date, from and
including the Closing Date) to but excluding such Distribution Date; in the case
of the first Distribution Date, the Interest Accrual Period will constitute 18
days.

     "INTEREST RATE" means the Class A-1 Rate, the Class A-2 Rate, the Class A-3
Rate or the Class A-4 Rate, as the case may be.

     "ISSUER" means Onyx Acceptance Owner Trust 2001-B and its successors.

     "LIEN" means a security interest, lien, charge, pledge, equity or
encumbrance of any kind, other than tax liens, mechanics' liens and any liens
that attach to the respective Contract by operation of law.

     "LIQUIDATED CONTRACT" means a Contract that (i) is the subject of a Full
Prepayment; (ii) is a Defaulted Contract with respect to which Liquidation
Proceeds constituting, in the Servicer's reasonable judgment, the final amounts
recoverable have been received and deposited in the Collection Account; (iii) is
paid in full on or after its Maturity Date; or (iv) has been a Defaulted
Contract for four or more Collection Periods and as to which Liquidation
Proceeds have not been deposited in the Collection Account; provided, however,
that in any event a Contract that is delinquent in the amount of five monthly
installments of Monthly P&I at the end of a Collection Period shall be deemed to
be a Liquidated Contract and shall be deemed to have a Principal Balance of
zero.

     "LIQUIDATION EXPENSES" means reasonable out-of-pocket expenses (not to
exceed Liquidation Proceeds), other than any overhead expenses, incurred by the
Servicer in connection with the realization of the full amounts due under any
Defaulted Contract (including the attempted liquidation of a Contract which is
brought current and is no longer in default during such attempted liquidation)
and the sale of any property acquired in respect thereof which are not
recoverable as proceeds paid by any insurer under a comprehensive and collision
insurance policy related to the Contract. Liquidation Expenses shall not include
any late fees or other administrative fees and expenses or similar charges
collected with respect to a Contract.

     "LIQUIDATION PROCEEDS" means amounts received by the Servicer (before
reimbursement for Liquidation Expenses) in connection with the realization of
the full amounts due and to become due under any Defaulted Contract and the sale
of any property acquired in respect thereof.

     "MANDATORY PARTIAL REDEMPTION AMOUNT" means the balance (excluding
investment earnings) remaining on deposit in the Prefunding Account on the
Mandatory Partial Redemption Date after giving effect to the sale to the Trust
of all Prefunded Contracts sold to the Trust during the Funding Period,
including any such acquisition and conveyance on the date on which the Funding
Period ends.

                                      -9-
<PAGE>   14

     "MANDATORY PARTIAL REDEMPTION DATE" means the Distribution Date on which
the Notes are partially prepaid pursuant to Section 4.07, which Distribution
Date shall be the Distribution Date immediately succeeding the date on which the
Funding Period ends in the event that any amount remains on deposit in the
Prefunding Account after giving effect to the sale to the Trust of all Prefunded
Contracts sold to the Trust during the Funding Period, including any acquisition
and conveyance on the date on which the Funding Period ends.

     "MATURITY DATE" means, with respect to any Contract, the date on which the
last scheduled payment of such Contract shall be due and payable as such date
may be extended pursuant to Section 3.02.

     "MAXIMUM CAPITALIZED INTEREST AMOUNT" means, with respect to each
Distribution Date following a Collection Period during which amounts are on
deposit in the Prefunding Account, an amount equal to the sum of the Note
Interest Distributable Amount (assuming no further reductions in principal on
the Notes) for each remaining Distribution Date during the Funding Period and
for the Distribution Date immediately following the Funding Period, plus the sum
of the fees payable to the Owner Trustee, the Indenture Trustee and the Trust
Agent and the premium payable to the Insurer for each such Distribution Date, in
each case, allocable to the balance in the Prefunding Account on the opening of
business on the first day of the beginning of the month in which the Maximum
Capitalized Interest Amount is being calculated for the Distribution Date in
that same month, on a pro rata basis, minus the earnings to be received by the
Indenture Trustee on behalf of the Trust through August 13, 2001 from investment
of the funds on deposit in the Prefunding Account, assuming that no additional
Prefunded Contracts are conveyed to the Trust and that interest at a rate of
2.5% per annum is earned on amounts on deposit in the Prefunding Account.

     "MONTHLY P&I" means, with respect to any Contract, the amount of each
monthly installment of principal and interest payable to the Obligee of such
Contract in accordance with the terms thereof, exclusive of any charges
allocable to the financing of any insurance premium and charges which represent
late payment charges or extension fees.

     "MOODY'S" means Moody's Investors Service, Inc., and its successors in
interest.

     "NET COLLECTIONS" means, with respect to any Distribution Date and the
related Collection Period, the sum of (i) all payments of Monthly P&I, all
partial prepayments, all Full Prepayments, Net Liquidation Proceeds and Net
Insurance Proceeds in each case, collected with respect to the Contracts during
such Collection Period, less partial prepayments of Precomputed Contracts
collected with respect to the Contracts during such Collection Period which are
deposited in the Payahead Account pursuant to Section 4.02(a), (ii) amounts
withdrawn from the Payahead Account pursuant to Section 4.01(b) and deposited in
the Collection Account with respect to such Distribution Date, and (iii) the
aggregate Purchase Amount for Purchased Contracts deposited in or credited to
the Collection Account pursuant to Section 4.02(a) on the Business Day preceding
the Servicer Report Date next preceding such Distribution Date.

                                      -10-
<PAGE>   15

     "NET INSURANCE PROCEEDS" means, with respect to any Contract, proceeds paid
by any insurer under a comprehensive and collision insurance policy related to
such Contract (other than funds used for the repair of the related Financed
Vehicle or otherwise released by Onyx to the related Obligor in accordance with
normal servicing procedures), after reimbursement to the Servicer of expenses
recoverable under such policy.

     "NET LIQUIDATION PROCEEDS" means the amount derived by subtracting from the
Liquidation Proceeds of a Contract the related Liquidation Expenses.

     "NET YIELD" means, on any day, the percentage equivalent of (a) four
multiplied by (b) a fraction the numerator of which is equal to (i) the sum of
(x) the aggregate of all interest collected on Contracts during the three
immediately preceding Collection Periods, (y) the investment earnings on amounts
deposited in the Prefunding Account transferred to the Payment Account with
respect to the three immediately preceding Distribution Dates and (z) the
amounts transferred from the Capitalized Interest Account to the Payment Account
with respect to the three immediately preceding Distribution Dates, minus (ii)
the sum of (A) the aggregate outstanding principal balances of Contracts which
became Liquidated Contracts other than by virtue of a Full Prepayment during
such three Collection Periods (less any Net Liquidation Proceeds received with
respect to such Liquidated Contracts during such three Collection Periods) and
(B) interest paid to the Noteholders and the Servicing Fees paid to the Servicer
during such three Collection Periods, and the denominator of which is equal to
the average of the Pool Balances as of the last day of each of such three
immediately preceding Collection Periods.

     "NOTE" means a Class A-1 Note, a Class A-2 Note, a Class A-3 Note or a
Class A-4 Note, as applicable.

     "NOTE DISTRIBUTABLE AMOUNT" means, with respect to any Distribution Date,
the sum of the Note Principal Distributable Amount and the Note Interest
Distributable Amount for such Distribution Date.

     "NOTE DISTRIBUTION ACCOUNT" means the account established and maintained as
such pursuant to Section 4.01.

     "NOTE FINAL SCHEDULED DISTRIBUTION DATE" means the Class A-1 Final
Scheduled Distribution Date, the Class A-2 Final Scheduled Distribution Date,
the Class A-3 Final Scheduled Distribution Date or the Class A-4 Final Scheduled
Distribution Date, as the case may be.

     "NOTEHOLDER" shall mean any Holder of a Note.

     "NOTE INTEREST CARRYOVER SHORTFALL" means, with respect to any Distribution
Date and a Class of Notes, the excess, if any, of the Note Interest
Distributable Amount for such Class for the immediately preceding Distribution
Date over the amount in respect of interest that is actually deposited in the
Note Distribution Account with respect to such Class on such preceding
Distribution Date, plus, to the extent permitted by applicable law, interest on
the amount of interest due but not paid to Noteholders of such Class on the
preceding Distribution Date at the related Interest Rate for the related
Interest Accrual Period; provided, however, that the Note Interest Carryover
Shortfall for the first Distribution Date shall be zero.

                                      -11-
<PAGE>   16

     "NOTE INTEREST DISTRIBUTABLE AMOUNT" means, with respect to any
Distribution Date and a Class of Notes, the sum of (i) an amount equal to the
interest accrued during the related Interest Accrual Period at the related
Interest Rate for such Class of Notes on the outstanding principal amount of
such Class of Notes on the immediately preceding Distribution Date, after giving
effect to all payments of principal to Noteholders of such Class on or prior to
such Distribution Date (or, in the case of the first Distribution Date, on the
original principal amount of such Class of Notes) and (ii) the Note Interest
Carryover Shortfall for such Class of Notes for such Distribution Date.

     "NOTE POOL FACTOR" means, with respect to any Class of Notes as of any
Distribution Date, a six-digit decimal figure equal to the outstanding principal
amount of such Class of Notes (after giving effect to any reductions thereof to
be made on such Distribution Date) divided by the original outstanding principal
amount of such Class of Notes.

     "NOTE PRINCIPAL CARRYOVER SHORTFALL" means, as of the close of business on
any Distribution Date, the excess of the Note Principal Distributable Amount for
such Distribution Date over the amount in respect of principal that is actually
deposited in the Note Distribution Account on such Distribution Date.

     "NOTE PRINCIPAL DISTRIBUTABLE AMOUNT" means, with respect to any
Distribution Date, the sum of (i) the Regular Principal Distributable Amount for
such Distribution Date, (ii) the Accelerated Principal Distributable Amount, if
any, for such Distribution Date and (iii) any outstanding Note Principal
Carryover Shortfall for the immediately preceding Distribution Date; provided,
however, that the Note Principal Distributable Amount shall not exceed the
aggregate outstanding principal amount of the Notes. Notwithstanding the
foregoing, the Note Principal Distributable Amount on the Note Final Scheduled
Distribution Date for each Class of Notes shall not be less than the amount that
is necessary to reduce the outstanding principal amount of the related Class of
Notes to zero.

     "NOTE REGISTER" shall have the meaning specified in the Indenture.

     "OBLIGEE" means, with respect to any Contract, the Person to whom an
Obligor is indebted under such Contract.

     "OBLIGOR" means, with respect to any Contract, the purchaser or
co-purchasers of the Financed Vehicle and any other Person who owes payments
under such Contract.

     "OFFICERS' CERTIFICATE" means a certificate signed by the Chairman, the
President or a Vice President, and by the Treasurer, an Assistant Treasurer, the
Controller, an Assistant Controller, the Secretary or an Assistant Secretary of
any Person delivering such certificate and delivered to the Person to whom such
certificate is required to be delivered. In the case of an Officers' Certificate
of the Servicer, at least one of the signing officers must be a Servicing
Officer. Unless otherwise specified, any reference herein to an Officers'
Certificate shall be to an Officers' Certificate of the Servicer.

     "ONYX" means Onyx Acceptance Corporation and its successors in interest.

     "OPINION OF COUNSEL" means a written opinion of counsel (who may be counsel
to the Seller or the Servicer) acceptable to the Indenture Trustee, the Owner
Trustee or the Trust Agent, as the case may be, and the Insurer.

                                      -12-
<PAGE>   17

     "ORIGINAL POOL BALANCE" means $400,000,000, which is the sum of (i) the
Principal Balances of the Initial Contracts as of the Initial Cut-Off Date, (ii)
the Principal Balances of the Subsequent Contracts as of the Subsequent Cut-Off
Date, and (iii) the initial deposit in the Prefunding Account.

     "OUTSTANDING" means with respect to a Contract and as of the time of
reference thereto, a Contract that has not reached its Maturity Date, has not
been fully prepaid, has not become a Liquidated Contract and has not been
repurchased pursuant to Section 2.03, 3.07 or 8.01.

     "OUTSTANDING PRINCIPAL BALANCE" means, as of the applicable Cut-Off Date,
(i) with respect to any Precomputed Contract, the amount set forth as the
Outstanding Principal Balance of such Contract on the Schedule of Contracts,
such amount being the total of all unpaid Monthly P&I due on or after the
Cut-Off Date, minus any unearned (or earned but unpaid) interest as of the
applicable Cut-Off Date computed in accordance with the Rule of 78's Method or
the Actuarial Method, as applicable, and (ii) with respect to any Simple
Interest Contract, the amount set forth as the Outstanding Principal Balance of
such Contract on the Schedule of Contracts, such amount being the total of all
principal payments due on or after the applicable Cut-Off Date.

     "OWNER TRUSTEE" means Bankers Trust (Delaware), not in its individual
capacity but solely as the Owner Trustee under the Trust Agreement, its
successors in interest and any successor Owner Trustee under the Trust
Agreement.

     "OWNER TRUSTEE CORPORATE TRUST OFFICE" means the principal office of the
Owner Trustee at which at any particular time its corporate trust business shall
be administered, which office at the date of the execution of this Agreement is
located at E.A. Delle Donne Corporate Center, 1011 Centre Road, Suite 200,
Wilmington, Delaware 19805-1266, Attention: Corporate Trust Administration; or
at such other address as the Owner Trustee may designate from time to time by
notice to the Noteholders, the Insurer, the Servicer and the Seller.

     "PAYAHEAD ACCOUNT" means the account established and maintained as such
pursuant to Section 4.01.

     "PAYMENT ACCOUNT" means the account established and maintained as such
pursuant to Section 4.01.

     "PAYING AGENT" means (i) with respect to the Notes, the Person acting as
the "Paying Agent" under the Indenture and (ii) with respect to the Residual
Interest Instruments, the Person acting as the "Paying Agent" under the Trust
Agreement, the Trust Agent or any other Person that meets the eligibility
standards for the Paying Agent specified in the Trust Agreement and is
authorized by the Issuer to make the distributions from the Payment Account,
including distributions in respect of the Residual Interest Instruments on
behalf of the Issuer.

     "PERCENTAGE INTEREST" shall have the meaning specified in Section 4.04(d).

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

                                      -13-
<PAGE>   18

     "POLICY" means the financial guarantee insurance policy for the Notes,
number 35247, dated May 18, 2001 and issued by the Insurer to the Indenture
Trustee, guaranteeing payment of any Policy Claim Amount, the form of which is
attached hereto as Exhibit B.

     "POLICY CLAIM AMOUNT" means, with respect to each Distribution Date, the
sum of (i) the Deficiency Amount for such Distribution Date and (ii) the
Preference Amount for such Distribution Date.

     "POOL BALANCE" as of the time of determination means the sum of (i) the
aggregate of the Principal Balances of the Contracts, exclusive of the Principal
Balances of all Contracts that are not Outstanding at the end of the Collection
Period ending immediately prior to such time of determination and (ii) the
amounts on deposit in the Prefunding Account (exclusive of any investment
earnings), if any.

     "POTENTIAL PREFERENCE PARTIES" shall have the meaning specified in Section
4.04(d).

     "PRECOMPUTED CONTRACT" means a Contract as to which, pursuant to the terms
of such Contract, the portion of payments allocable to earned interest and
principal thereunder is determined according to the "Rule of 78's Method" or the
"Actuarial Method".

     "PREFERENCE AMOUNT" means any amount previously distributed to a Holder in
respect of the Notes that is recoverable and sought to be recovered as a
voidable preference by a trustee in bankruptcy with respect to Onyx, the Seller
or the Trust pursuant to the United Stated Bankruptcy Code (11 U.S.C.), as
amended from time to time, in accordance with a final nonappealable order of a
court having competent jurisdiction.

     "PREFERENCE CLAIM" shall have the meaning specified in Section 7.05.

     "PREFUNDED AMOUNT" means $60,758,614.09, the initial deposit into the
Prefunding Account.

     "PREFUNDED CONTRACTS" means the Contracts which are transferred by the
Seller to the Issuer on each Prefunding Transfer Date pursuant to this Agreement
and are identified on the schedule attached to the Transfer Certificate
delivered to the Trust, the Indenture Trustee and the Insurer on the Business
Day immediately preceding the related Prefunding Transfer Date.

     "PREFUNDING ACCOUNT" means the account established as such pursuant to
Section 4.01 and maintained pursuant to Section 4.07.

     "PREFUNDING CLOSING DATE" means the last day of the Funding Period, or if
such day is not a Business Day, the following Business Day.

     "PREFUNDING CLOSING DATE CERTIFICATE" means the certificate of an officer
of the Seller delivered in connection with the Prefunding Closing Date,
substantially in the form attached hereto as Exhibit C-2.

     "PREFUNDING CUT-OFF DATE" means the cut-off date specified in the Transfer
Certificate with respect to the Prefunded Contracts transferred on the related
Prefunding Transfer Date.

                                      -14-
<PAGE>   19

     "PREFUNDING TRANSFER DATE" means each day on which the Seller conveys
Prefunded Contracts to the Trust.

     "PREMIUM" shall have the meaning specified in the Insurance Agreement.

     "PRINCIPAL BALANCE" means, with respect to a Contract, as of any date, the
Amount Financed under the terms of such Contract minus (i) that portion of
Monthly P&I in respect of such Contract received on or prior to the end of the
most recently ended Collection Period and allocable to principal as determined
by the Servicer and (ii) any Cram Down Loss incurred in respect of such Contract
on or prior to the end of the most recently ended Collection Period. For
purposes of this definition, allocations of Monthly P&I on each Contract by the
Servicer shall be made in accordance with the terms of such Contract, in the
case of a Simple Interest Contract or an Actuarial Contract, or in accordance
with the Recomputed Actuarial Method, in the case of a Rule of 78's Contract.

     "PURCHASE AGREEMENT" means the Amended and Restated Sale and Servicing
Agreement dated as of September 4, 1998 between Onyx, as seller, and the Seller,
as purchaser, as such agreement may have been or may be modified, supplemented
or amended from time to time.

     "PURCHASE AMOUNT" means, with respect to a Purchased Contract, the
Principal Balance of such Contract as of the date of purchase of such Contract
plus interest on such Contract through the date of such purchase, to the extent
not previously collected.

     "PURCHASED CONTRACT" means a Contract that (i) has been purchased by the
Servicer or the Seller because of certain material defects in documents related
to such Contract or certain breaches of representations and warranties regarding
such Contract made by the Seller in this Agreement that materially and adversely
affect the interests of the Noteholders or the Insurer, (ii) has been purchased
by the Servicer because of certain breaches of servicing covenants or (iii) has
been purchased by the Servicer in the event of an optional purchase of all of
the Contracts pursuant to Section 8.01

     "RATING AGENCIES" means Moody's and Standard & Poor's.

     "RECOMPUTED ACTUARIAL METHOD" means a method of accounting pursuant to
which each payment of Monthly P&I due on a Rule of 78's Contract will be deemed
to consist of interest equal to the product of 1/12 of the Recomputed Yield for
such Contract and the Principal Balance of the Contract as of the preceding Due
Date for such Contract and of principal to the extent of the remainder of such
scheduled installment of Monthly P&I, which will cause the Outstanding Principal
Balance as of the related Cut-Off Date to be amortized in full at the Recomputed
Yield.

     "RECOMPUTED YIELD" for any Rule of 78's Contract means the per annum rate
determined as of the related Cut-Off Date, such that the net present value of
the remaining scheduled payments due on such Contract, discounted at such rate
from the Due Date for each such scheduled payment to the Due Date for such
Contract immediately preceding the related Cut-Off Date, will equal the
Outstanding Principal Balance.

     "RECORD DATE" means, with respect to a Class of Notes and any Distribution
Date, the Business Day immediately preceding such Distribution Date or, if
Definitive Notes are issued, the last day of the immediately preceding calendar
month.

                                      -15-
<PAGE>   20

     "REGISTRAR OF TITLES" means the agency, department or office having the
responsibility for maintaining records of titles to motor vehicles and issuing
documents evidencing such titles in the jurisdiction in which a particular
Financed Vehicle is registered.

     "REGULAR PRINCIPAL DISTRIBUTABLE AMOUNT" means, with respect to any
Distribution Date, the amount equal to the sum of the following amounts with
respect to the related Collection Period: (i) collections received on Contracts
(other than Liquidated Contracts and Purchased Contracts) allocable to principal
as determined by the Servicer, including full and partial principal prepayments
(other than partial prepayments on Precomputed Contracts representing amounts
not due in such Collection Period which will be deposited into the Payahead
Account in accordance with this Agreement), (ii) the Principal Balance
(immediately prior to the reduction thereof to zero as provided in the
definition of "Liquidated Contract") of all Contracts (other than Purchased
Contracts) that became Liquidated Contracts during the related Collection
Period, (iii) the Principal Balance of all Contracts that became Purchased
Contracts as of the immediately preceding Record Date and (iv) the aggregate
amount of Cram Down Losses incurred during the related Collection Period.

     "REPAYMENT AMOUNT" shall have the meaning specified in the Insurance
Agreement.

     "RESIDUAL INTEREST" means the residual interest in the Trust, which
represents the right to the amount remaining, if any, after all prior
distributions have been made under this Agreement, the Indenture and the Trust
Agreement on each Distribution Date and certain other rights to receive amounts
hereunder and under the Trust Agreement.

     "RESIDUAL INTEREST INSTRUMENT" shall have the meaning specified in the
Trust Agreement.

     "RESIDUAL INTERESTHOLDER" means each Person in whose name a Residual
Interest Instrument is registered in the Certificate Register.

     "RESPONSIBLE OFFICER" means any officer of the Indenture Trustee within the
Corporate Trust Office including any vice president, assistant vice president,
assistant treasurer, assistant secretary or any other officer of the Indenture
Trustee customarily performing functions similar to those performed by any of
the above designated officers with direct responsibility for the administration
of this Agreement.

     "RULE OF 78's CONTRACT" means a Contract pursuant to which the allocation
between interest and principal is calculated using the Rule of 78's Method.

     "RULE OF 78's METHOD" means the method of allocating principal and interest
payments on a Contract whereby the amount of each payment allocable to interest
on a Contract is determined by multiplying the total amount of add-on interest
payable over the term of the Contract by a fraction, the denominator of which is
equal to the sum of a series of numbers representing the total number of monthly
payments due under the Contract and the numerator of which is the number of
payments remaining before giving effect to the payment to which the fraction is
being applied.

     "SCHEDULE OF CONTRACTS" means the list or lists of Funded Contracts
attached as Schedule I-A and Schedule I-B to this Agreement and each list of
Prefunded Contracts delivered to the Indenture Trustee, the Issuer and the
Insurer on each Prefunding Transfer Date and identified on Schedule I to the
related Transfer Certificate, which Contracts are being transferred to the Trust

                                      -16-
<PAGE>   21

as part of the Trust Property, together with supplemental data regarding the
contracts verified by the Servicer. The Schedule of Contracts attached hereto as
Schedules I-A and I-B, together with the initial deposit into the Prefunding
Account, comprises the Original Pool Balance. The following information with
respect to each Funded Contract is set forth on Schedule I-A and Schedule I-B in
columns, and any supplement to the Schedule of Contracts for Prefunded Contracts
will present the information in the same format:

                  Contract Number ("Account")
                  Date of Origination ("Discount Date")
                  Maturity Date ("Maturity")
                  Monthly P&I ("Payment")
                  Original Principal Balance ("Amount Financed")
                  Outstanding Principal Balance ("Net Balance")
                  Annual Percentage Rate ("APR")

In addition, the information contained in the Schedule of Contracts shall also
be contained on a computer disk or tape that shall be delivered by the Servicer
to the Indenture Trustee not later than (i) the 5th Business Day following the
Closing Date, with respect to the Funded Contracts and (ii) the 5th Business Day
following the related Prefunding Transfer Date, with respect to the Prefunded
Contracts.

     "SELLER" means Onyx Acceptance Financial Corporation, in its capacity as
the Seller of the Contracts under this Agreement, and each successor thereto (in
the same capacity) pursuant to Section 5.02.

     "SERVICER" means Onyx in its capacity as the servicer of the Contracts
under Section 3.01, and, in each case upon succession in accordance herewith,
each successor servicer in the same capacity pursuant to Section 3.01 and each
successor servicer pursuant to Section 7.02.

     "SERVICER DEFAULT" means an event specified in Section 7.01.

     "SERVICER REPORT DATE" means, with respect to any Distribution Date, the
fifth Business Day prior to such Distribution Date.

     "SERVICING FEE" means, as to any Distribution Date, the fee payable to the
Servicer for services rendered during the Collection Period ending immediately
prior to such Distribution Date, which shall be an amount equal to the product
of one-twelfth of 1% per annum multiplied by the Pool Balance (excluding amounts
on deposit in the Prefunding Account) as of the end of the Collection Period
preceding the related Collection Period.

     "SERVICING OFFICER" means any officer of the Servicer involved in, or
responsible for, the administration and servicing of the Contracts whose name
appears on a list of servicing officers furnished to the Indenture Trustee by
the Servicer pursuant to Section 3.01, as such list may be amended or
supplemented from time to time.

     "SERVICING STANDARDS" means at any time the quality of the Servicer's
performance with respect to (i) compliance with the terms of this Agreement and
(ii) adequacy, measured in accordance with industry standards and current and
historical standards of the Servicer, in respect of the servicing of all
Contracts serviced by the Servicer, regardless of whether any such Contract is
owned by the Servicer or otherwise.

                                      -17-
<PAGE>   22

     "SIMPLE INTEREST CONTRACT" means a Contract as to which the portion of
payments allocable to earned interest and principal thereunder is determined
according to the Simple Interest Method. For such Contracts, interest accrued as
of the Due Date is paid first, and then the remaining payment is applied to the
unpaid principal balance. Accordingly, if an Obligor pays the fixed monthly
installment in advance of the Due Date, the portion of the payment allocable to
interest for the period since the preceding payment will be less than it would
be if the payment were made on the Due Date, and the portion of the payment
allocable to reduce the principal balance will be correspondingly greater.
Conversely, if an Obligor pays the fixed monthly installment after its Due Date,
the portion of the payment allocable to interest for the period since the
preceding payment will be greater than it would be if the payment were made on
the Due Date, and the portion of the payment allocable to reduce the principal
balance will be correspondingly smaller. When necessary, an adjustment will be
made at the maturity of the Contract to the scheduled final payment to reflect
the larger or smaller, as the case may be, allocations of payments to the amount
financed under the Contract as a result of early or late payments, as the case
may be.

     "SIMPLE INTEREST METHOD" means the method for calculating interest on a
Contract whereby interest due is calculated each day based on the actual
principal balance of the Contract on that day.

     "SPREAD ACCOUNT" means the account established and maintained as such
pursuant to Section 4.01.

     "SPREAD ACCOUNT MAXIMUM" shall have the meaning set forth in the Insurance
Agreement.

     "STANDARD & POOR'S" means Standard & Poor's Ratings Services, a division of
The McGraw-Hill Companies, Inc., and its successors in interest.

     "SUBSEQUENT CONTRACTS" means the Contracts designated as such in Schedule
I-B attached hereto, which have an aggregate Outstanding Principal Balance of
$35,050,268.93.

     "SUBSEQUENT CUT-OFF DATE" means May 10, 2001.

     "SUCCESSOR CUSTODIAN" shall have the meaning set forth in Section 2.04(b).

     "TITLE DOCUMENT" means, with respect to any Financed Vehicle, the
certificate of title for, or other evidence of ownership of, such Financed
Vehicle issued by the Registrar of Titles in the jurisdiction in which such
Financed Vehicle is registered. For Financed Vehicles registered in certain
states, the Title Document may consist of electronic evidence of ownership on
the electronic lien and title systems of such states.

     "TRANSFER CERTIFICATE" means the certificate of an officer of the Seller
delivered in connection with the delivery of any Prefunded Contracts on the
Business Day immediately preceding a Prefunding Transfer Date, substantially in
the form attached hereto as Exhibit C-1.

     "TRUST" means the Issuer.

                                      -18-
<PAGE>   23

     "TRUST ACCOUNT PROPERTY" means the Trust Accounts, all amounts and
investments held from time to time in any Trust Account (whether in the form of
deposit accounts, physical property, book-entry securities, uncertificated
securities or otherwise) and all proceeds of the foregoing.

     "TRUST ACCOUNTS" shall have the meaning specified in Section 4.01(a).

     "TRUST AGENT" means The Chase Manhattan Bank, not in its individual
capacity but solely as the Trust Agent under the Trust Agreement and this
Agreement acting on behalf of the Owner Trustee, its successors in interest, and
any successor Trust Agent under such agreements.

     "TRUST AGENT OFFICE" means the principal office of the Trust Agent, which
office at the date of the execution of this Agreement is located at 450 W. 33rd
Street, 14th Floor, New York, New York 10001-2697, Attention: Institutional
Trust Services; or at such other address as the Trust Agent may designate from
time to time by notice to the Noteholders, the Insurer, the Servicer and the
Seller.

     "TRUST AGREEMENT" means the Trust Agreement, dated as of May 1, 2001, among
the Depositor, the Owner Trustee and the Trust Agent.

     "TRUST PROPERTY" has the meaning set forth in Section 2.01(b) hereof.

     "UCC" means the Uniform Commercial Code as in effect in the applicable
jurisdiction.

     SECTION 1.02. USAGE OF TERMS.

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

     SECTION 1.03. SECTION REFERENCES.

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

     SECTION 1.04. CALCULATIONS.

     Interest on the Notes will be calculated on the basis of a 360-day year of
twelve 30-day months, except that interest on the Class A-1 Notes will be
calculated on the basis of a 360-day year and the actual number of days in the
related Interest Accrual Period. Collections of interest on Rule of 78's
Contracts shall be calculated as if such Contracts were actuarial contracts the
scheduled principal balances of which are the Principal Balances thereof, and
collections of interest on Simple Interest Contracts and Actuarial Contracts
will be calculated in accordance with the terms thereof.

                                      -19-
<PAGE>   24

     SECTION 1.05. ACCOUNTING TERMS.

     All accounting terms used but not specifically defined herein shall be
construed in accordance with generally accepted accounting principles in the
United States of America.

                                   ARTICLE II

                            CONVEYANCE OF CONTRACTS;
                  REPRESENTATIONS AND WARRANTIES OF THE SELLER

     SECTION 2.01. CONVEYANCE OF CONTRACTS.

     (a) In consideration of the Issuer's delivery of authenticated Notes, in an
aggregate amount equal to $400,000,000, to or upon the order of the Seller,
effective upon the Closing Date, the Seller hereby sells, grants, transfers,
conveys and assigns to the Issuer, without recourse (except as expressly
provided in Section 2.03 hereof), all of the right, title and interest of the
Seller in, to and under:

          (i)    the Funded Contracts listed in the Schedule of Contracts;

          (ii)   all monies received under the Funded Contracts on or after the
                 related Cut-Off Date;

          (iii)  all Net Liquidation Proceeds and Net Insurance Proceeds with
                 respect to any Financed Vehicle to which a Funded Contract
                 relates received on or after the related Cut-Off Date;

          (iv)   the Contract Documents and Contract Files relating to the
                 Funded Contracts (except the Contract Documents and Contract
                 Files for Funded Contracts which have been the subject of a
                 Full Prepayment received on or after the related Cut-Off Date
                 but no later than two Business Days prior to the Closing Date,
                 in lieu of which the Seller shall have deposited in or credited
                 to the Collection Account on or prior to the Closing Date an
                 amount equal to such Full Prepayment);

          (v)    the Trust Accounts and all amounts, financial assets and
                 investment property held therein or credited thereto,
                 including, if applicable, all Eligible Investments credited
                 thereto (but excluding (A) the Payahead Account and all
                 amounts, financial assets and investment property held therein
                 or credited thereto, including all Eligible Investments
                 credited thereto and (B) investment income credited to the
                 Collection Account);

          (vi)   the right of the Seller, as purchaser under the Purchase
                 Agreement, to cause Onyx as seller thereunder to repurchase
                 Funded Contracts listed in the Schedule of Contracts under
                 certain circumstances;

                                      -20-
<PAGE>   25

          (vii)  any and all security interests of the Seller in the Financed
                 Vehicles and the rights to receive proceeds from claims on
                 certain insurance policies covering the Financed Vehicles or
                 the individual Obligors under each related Funded Contract;

          (viii) the Seller's right to proceeds under the Blanket Insurance
                 Policy with respect to the Funded Contracts; and

          (ix)   all proceeds in any way delivered with respect to the
                 foregoing, all rights to payments with respect to the foregoing
                 and all rights to enforce the foregoing.

     (b) Subject to the conditions set forth in Section 2.01(c), in
consideration of the Issuer's delivery of authenticated Notes, in an aggregate
amount equal to $400,000,000, to or upon the order of the Seller, effective upon
the Closing Date, the Seller hereby sells, grants, transfers, conveys and
assigns to the Issuer, without recourse (except as expressly provided in Section
2.03 hereof) effective upon delivery to the Issuer on the related Prefunding
Transfer Date against payment therefor from the Prefunding Account in accordance
Section 4.07(b), all of the right, title and interest of the Seller in, to and
under:

          (i)    all Prefunded Contracts listed on each Transfer Certificate;

          (ii)   all monies received under the Prefunded Contracts on or after
                 the related Prefunding Cut-Off Date;

          (iii)  all Net Liquidation Proceeds and Net Insurance Proceeds with
                 respect to any Financed Vehicle to which a Prefunded Contract
                 relates received on or after the related Prefunding Cut-Off
                 Date;

          (iv)   the Contract Documents and Contract Files relating to the
                 Prefunded Contracts;

          (v)    the right of the Seller, as purchaser under the Purchase
                 Agreement, to cause Onyx as seller thereunder to repurchase
                 Prefunded Contracts listed on any Transfer Certificate under
                 certain circumstances;

          (vi)   any and all security interests of the Seller in the related
                 Financed Vehicles and the rights to receive proceeds from
                 claims on certain insurance policies covering such Financed
                 Vehicles or the individual Obligors under each related
                 Prefunded Contract;

          (vii)  the Seller's right to proceeds under the Blanket Insurance
                 Policy with respect to the Prefunded Contracts; and

          (viii) all proceeds in any way delivered with respect to the
                 foregoing, all rights to payments with respect to the foregoing
                 and all rights to enforce the foregoing.

                                      -21-
<PAGE>   26

     The foregoing items of property listed in Sections 2.01(a) and (b),
together with the rights of the Indenture Trustee under the Policy, are
collectively referred to as the "TRUST PROPERTY". In addition, on or prior to
the Closing Date, the Seller shall cause the Insurer to deliver the Policy to
the Indenture Trustee for the benefit of the Noteholders.

     It is the intention of the Seller and the Issuer that the assignment and
transfer herein contemplated constitute (and shall be construed and treated for
all purposes as) a true and complete sale of the Trust Property (other than the
Spread Account and the Policy), conveying good title thereto free and clear of
any liens and encumbrances, from the Seller to the Issuer. However, in the event
that such conveyance is deemed to be a pledge to secure a loan (in spite of the
express intent of the parties hereto that this conveyance constitutes, and shall
be construed and treated for all purposes, as a true and complete sale), the
Seller hereby grants to the Issuer, for the benefit of the Noteholders and the
Insurer, a first priority perfected security interest in all of the Seller's
right, title and interest in the Trust Property whether now existing or
hereafter created and all proceeds of the foregoing to secure the loan deemed to
be made in connection with such pledge and, in such event, this Agreement shall
constitute a security agreement under applicable law.

     (c) The sale and assignment of the Prefunded Contracts and the other
property and rights related thereto described in Section 2.01(b) shall be
subject to the satisfaction of each of the following conditions, as well as the
conditions set forth in Section 4.08, as of the related Prefunding Transfer
Date, as applicable:

          (i)    the Seller shall have delivered to the Custodian, on behalf of
                 the Issuer, the Prefunded Contracts, and the Seller shall have
                 delivered to the Issuer, the Indenture Trustee and the Insurer,
                 on the Business Day immediately preceding the related
                 Prefunding Transfer Date, a duly executed Transfer Certificate,
                 substantially in the form of Exhibit C- 1;

          (ii)   the Servicer and the Seller shall certify to the Indenture
                 Trustee and the Insurer that, as of the Prefunding Transfer
                 Date, the Servicer and the Seller, respectively, were not
                 insolvent nor were they made insolvent by such transfer nor
                 were they aware of any such pending insolvency;

          (iii)  the Seller shall certify to the Indenture Trustee and the
                 Insurer that the addition of such Prefunded Contracts will not
                 result in a material adverse tax consequence to the Issuer or
                 the Noteholders;

          (iv)   the Funding Period shall not have terminated;

          (v)    the Seller and the Servicer shall certify to the Indenture
                 Trustee and the Insurer that no selection procedures believed
                 by the Seller or the Servicer to be adverse to the interests of
                 the Noteholders or the Insurer shall have been utilized in
                 selecting the Prefunded Contracts;

                                      -22-
<PAGE>   27

          (vi)   the Seller and the Insurer shall not have been advised by
                 either Rating Agency on or before the Business Day immediately
                 preceding such Prefunding Transfer Date that the conveyance of
                 the Prefunded Contracts would result in a qualification,
                 modification or withdrawal of its then current rating of the
                 Notes without regard to the Policy;

          (vii)  the weighted average APR (using the Recomputed Yield for the
                 Rule of 78's Contracts) of the Contracts (after giving effect
                 to the purchase of the related Prefunded Contracts) shall not
                 be less than 12.62%;

          (viii) less than 20% of the Prefunded Contracts transferred by the
                 Seller to the Issuer since the Closing Date, including all
                 Prefunded Contracts being transferred on such Prefunding
                 Transfer Date, shall have an original term to maturity of more
                 than 60 months and the weighted average remaining term of all
                 Contracts (including the Prefunded Contracts) as of such
                 Prefunding Transfer Date shall not be greater than 59 months;

          (ix)   if the balance in the Prefunding Account prior to such
                 Prefunding Transfer Date exceeds $30,000,000, the aggregate
                 Outstanding Principal Balance, as of the related Prefunding
                 Cut-Off Date, of the Prefunded Contracts to be conveyed by the
                 Seller to the Issuer on such Prefunding Transfer Date shall
                 equal or exceed $10,000,000 and the Insurer shall have
                 consented to such transfer;

          (x)    at least three Business Days prior to each Prefunding Transfer
                 Date, the Seller shall have delivered to the Rating Agencies
                 and the Insurer pool stratification data (including data with
                 respect to when the first scheduled payment is due under each
                 such Prefunded Contract) relating to the Prefunded Contracts to
                 be conveyed by the Seller to the Issuer on such Prefunding
                 Transfer Date, in the form of stratification data delivered to
                 the Rating Agencies and the Insurer with respect to the Funded
                 Contracts, and, as of the related Prefunding Cut-Off Date,
                 shall have certified that the information contained therein is
                 true and correct; and

          (xi)   The first scheduled monthly payment for at least 50% of the
                 Prefunded Contracts (by Outstanding Principal Balance as of the
                 related Prefunding Cut-Off Date) shall be due on or before June
                 30, 2001.

     (d) As of the Closing Date, the Issuer acknowledges the conveyance to it of
the Trust Property from the Seller, including all right, title and interest of
the Seller in and to the Trust Property, receipt of which is hereby acknowledged
by the Issuer. Concurrently with such delivery and in exchange therefor, the
Issuer has pledged to the Indenture Trustee, for the benefit of the Noteholders
and the Insurer, the Trust Property and the Indenture Trustee, pursuant to the
written instructions of the Issuer, has executed and caused to be authenticated
and delivered the Notes to the Seller or its designee, upon the order of the
Issuer.

                                      -23-
<PAGE>   28

     (e) In connection with the sale of the Contracts pursuant to the Purchase
Agreement, Onyx has filed with the office of the Secretary of State of the State
of California a UCC-1 financing statement naming Onyx as debtor, naming the
Seller as secured party and including the Contracts in the description of the
collateral. In connection with the sale of the Contracts pursuant to this
Agreement, the Seller has filed or caused to be filed with the Secretary of
State of the State of California a UCC-1 financing statement naming the Seller
as debtor, naming the Issuer as secured party, naming the Indenture Trustee, on
behalf of the Noteholders, as assignee, and including the Contracts in the
description of the collateral. In connection with the pledge of the Contracts
pursuant to the Indenture, the Trust has filed with the offices of the Secretary
of State of the State of Delaware UCC-1 financing statements naming the Trust as
debtor and the Indenture Trustee, on behalf of the Noteholders and the Insurer,
as secured party. The grant of a security interest to the Indenture Trustee and
the rights of the Indenture Trustee in the Contracts shall be governed by the
Indenture.

     The Seller shall have caused UCC-2 termination statements to have been
filed with the office of Secretary of State of the State of California
terminating any effective UCC-1 financing statements with respect to any
outstanding security interests in the Contracts.

     (f) From time to time, the Servicer shall cause to be taken such actions as
are necessary to continue the perfection of the respective interests of the
Trust and the Indenture Trustee in the Contracts and to continue the first
priority security interest of the Indenture Trustee in the Financed Vehicles and
their proceeds (other than, as to such priority, any statutory lien arising by
operation of law after the Closing Date which is prior to such interest),
including, without limitation, the filing of financing statements, amendments
thereto or continuation statements and the making of notations on records or
documents of title.

     (g) If any change in the name, identity or corporate structure of the
Seller or Onyx or the relocation of the chief executive office of either of them
would make any financing or continuation statement or notice of lien filed under
this Agreement or the other Basic Documents misleading within the meaning of
applicable provisions of the UCC or any title statute, the Servicer, within the
time period required by applicable law, shall file such financing statements or
amendments as may be required to preserve and protect the interests of the
Trust, the Indenture Trustee, the Noteholders and the Insurer in the Contracts,
the related Financed Vehicles and the proceeds thereof. Promptly thereafter, the
Servicer shall deliver to the Trust, the Indenture Trustee and the Insurer an
Opinion of Counsel stating that, in the opinion of such counsel, all financing
statements or amendments necessary fully to preserve and protect the interests
of the Trust, the Indenture Trustee, the Noteholders and the Insurer in the
Contracts, the related Financed Vehicles and the proceeds thereof have been
filed, and reciting the details of such filings.

     (h) During the term of this Agreement, the Seller and Onyx shall each
maintain its chief executive office in one of the states of the United States.

     (i) The Servicer shall pay all reasonable costs and disbursements in
connection with the perfection and the maintenance of perfection, as against all
third parties, of the Indenture Trustee's right, title and interest in and to
the Contracts and in connection with maintaining the first priority security
interest (subject to the security interest of the Insurer pursuant to the
Insurance Agreement) in the Financed Vehicles and the proceeds thereof.

                                      -24-
<PAGE>   29

     (j) On the Prefunding Closing Date, the Seller shall:

          (i)    deliver a certificate from each secured creditor of the Seller
                 confirming that such creditor has no claim of any security
                 interest in any of the Prefunded Contracts transferred during
                 the Funding Period;

          (ii)   deliver to each Rating Agency, the Insurer and the Indenture
                 Trustee a Prefunding Closing Date Certificate;

          (iii)  deliver to each Rating Agency, the Insurer and the Indenture
                 Trustee an Opinion of Counsel with respect to the absence of
                 negative tax consequences to the Trust, the characterization of
                 the transfer of the Prefunded Contracts and the perfection of
                 the Indenture Trustee's interest on behalf of the Noteholders;

          (iv)   deliver to each Rating Agency, the Insurer and the Indenture
                 Trustee with respect to any state (other than California) in
                 which 10% or more of the Contracts (including the Prefunded
                 Contracts), by Outstanding Principal Balance, were originated,
                 an opinion with respect to the perfection of the security
                 interest of the Indenture Trustee in the Financed Vehicles
                 securing the Contracts originated in such state; and

          (v)    deliver to the Insurer an Opinion of Counsel to the effect that
                 Onyx is duly qualified as a foreign corporation to do business,
                 and is in good standing, in each of the states in which
                 Prefunded Contracts have been originated.

     Failure to comply with any of the conditions set forth in this Section
2.01(j) on the Prefunding Closing Date shall be deemed to be a breach of a
representation and warranty with respect to each of the Prefunded Contracts to
which such failed conditions relate as of the Prefunding Closing Date.

     SECTION 2.02. REPRESENTATIONS AND WARRANTIES OF THE SELLER.

     The Seller makes the following representations and warranties on which (i)
the Issuer is deemed to have relied in acquiring the Contracts and (ii) the
Insurer is deemed to have relied in issuing the Policy; provided such
representations and warranties speak as of the execution and delivery of this
Agreement and as of the Closing Date with respect to Sections 2.02(a), (b) and
(c), and as of each Prefunding Transfer Date (with respect to the Prefunded
Contracts conveyed to the Trust on such date) with respect to Sections 2.02(a)
and (d), but shall survive the sale, transfer and assignment of the Contracts to
the Issuer and the pledge thereof to the Indenture Trustee pursuant to the
Indenture.

     (a) As to the Seller:

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

                                      -25-
<PAGE>   30

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

          (iii)  The Seller has the power and authority to execute and deliver
                 this Agreement and to carry out its terms; the Seller has full
                 power and authority to sell and assign the property to be sold
                 and assigned to and deposited with the Issuer and has duly
                 authorized such sale and assignment to the Issuer by all
                 necessary corporate action; and the execution, delivery, and
                 performance of this Agreement has been duly authorized by the
                 Seller by all necessary corporate action.

          (iv)   This Agreement constitutes (A) a valid sale, transfer, and
                 assignment of the Contracts, enforceable against creditors of
                 and purchasers from the Seller and (B) a legal, valid, and
                 binding obligation of the Seller enforceable in accordance with
                 its terms, except as such enforceability may be limited by
                 bankruptcy, insolvency, reorganization, or other similar laws
                 affecting the enforcement of creditors' rights in general and
                 by general principles of equity, regardless of whether such
                 enforceability shall be considered in a proceeding in equity or
                 at law.

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

          (vi)   To the Seller's best knowledge after due inquiry, there are no
                 proceedings or investigations pending, or threatened, before
                 any court, regulatory body, administrative agency, or other
                 governmental instrumentality having jurisdiction over the
                 Seller or its properties: (A) asserting the invalidity of this
                 Agreement, the Notes, (B) seeking to prevent the issuance of
                 the Notes or the consummation of any of the transactions
                 contemplated by this Agreement, (C) seeking any determination
                 or ruling that might materially and adversely affect the
                 performance by the Seller of its obligations under, or the
                 validity or enforceability of, this Agreement, the Notes, or
                 (D) naming the Seller which might adversely affect the federal
                 income tax attributes of the Notes.

                                      -26-
<PAGE>   31

     (b) As to each Funded Contract (except as noted below as being applicable
only to either Precomputed Contracts or Simple Interest Contracts):

          (i)    The information pertaining to such Contract set forth in the
                 related Schedule of Contracts was true and correct in all
                 material respects at the Closing Date.

          (ii)   As of the Closing Date, such Contract was secured by a valid
                 and enforceable first priority security interest in favor of
                 Onyx in the related Financed Vehicle, and such security
                 interest has been duly perfected and is prior to all other
                 liens upon and security interests in such Financed Vehicle
                 which now exist or may hereafter arise or be created (except,
                 as to priority, for any lien for unpaid taxes or unpaid storage
                 or repair charges which may arise after the Closing Date in
                 accordance with the UCC); such security interest is assignable,
                 had been assigned by Onyx to the Seller pursuant to the
                 Purchase Agreement, and, as of the Closing Date, has been
                 assigned by the Seller to the Issuer pursuant to Section
                 2.01(a) hereof.

          (iii)  (A) If the related Contract was originated in a state in which
                 notation of a security interest on the Title Document (or in
                 the electronic title records) is required or permitted to
                 perfect the security interest in the related Financed Vehicle,
                 the Title Document or the electronic title records for such
                 Financed Vehicle shows, or, if a new or replacement Title
                 Document is being applied for with respect to such Financed
                 Vehicle, the Title Document will be received within 180 days of
                 the Closing Date and will show, Onyx named as the original
                 secured party under the related Contract as the holder of a
                 first priority security interest in such Financed Vehicle, and
                 (B) if the related Contract was originated in a state in which
                 the filing of a financing statement under the UCC is required
                 to perfect a security interest in motor vehicles, such filings
                 or recordings have been duly made and show Onyx named as the
                 original secured party under the related Contract, and in
                 either case, the Indenture Trustee on behalf of the Noteholders
                 and the Insurer has the same rights as such secured party has
                 or would have (if such secured party were still the owner of
                 such Contract) against all parties claiming an interest in such
                 Financed Vehicle. With respect to each Contract for which the
                 Title Document has not yet been returned from the Registrar of
                 Titles (or evidenced in the electronic title records), Onyx has
                 written evidence that such Title Documents showing Onyx as
                 first lienholder have been applied for.

                                      -27-
<PAGE>   32

          (iv)   As of the Closing Date, the Seller had good and marketable
                 title to and was the sole owner of each such Contract to be
                 transferred to the Issuer pursuant to Section 2.01 free of
                 liens, claims, encumbrances and rights of others and, upon
                 transfer of such Contract to the Issuer pursuant to Section
                 2.01, the Issuer will have good and marketable title to, will
                 have a first priority perfected security interest in and will
                 be the sole owner of such Contract free of liens, encumbrances
                 and rights of others.

          (v)    As of the related Cut-Off Date, the most recent scheduled
                 payment due on each such Contract had been made or was not
                 delinquent more than 30 days and, to the best of the Seller's
                 knowledge, all payments on the Contract were made by the
                 related Obligors.

          (vi)   As of the Closing Date, there is no lien against the related
                 Financed Vehicle for delinquent taxes.

          (vii)  As of the Closing Date, there is no right of rescission,
                 offset, defense or counterclaim to the obligation of the
                 related Obligor(s) to pay the unpaid principal or interest due
                 under such Contract; the operation of the terms of such
                 Contract or the exercise of any right thereunder will not
                 render such Contract unenforceable in whole or in part or
                 subject such Contract to any right of rescission, offset,
                 defense or counterclaim, and the Seller has no knowledge that
                 such right of rescission, offset, defense or counterclaim has
                 been asserted or threatened.

          (viii) As of the Closing Date, to the best of the Seller's knowledge,
                 there are no liens or claims which have been filed, including
                 liens for work, labor, material, storage or unpaid taxes
                 affecting the related Financed Vehicle which are or may become
                 a lien prior to, or equal or coordinate with, the security
                 interest granted by such Contract.

          (ix)   Such Contract, and the sale of the Financed Vehicle sold
                 thereunder, complied, at the time it was made, in all material
                 respects with all applicable federal, state and local laws (and
                 regulations thereunder), including without limitation usury,
                 equal credit opportunity, fair credit reporting,
                 truth-in-lending or other similar laws, the Federal Trade
                 Commission Act, the Fair Debt Collection Practices Act, the
                 Fair Credit Billing Act, the Magnuson-Moss Warranty Act, the
                 Federal Reserve Board's Regulations B and Z, the Soldiers' and
                 Sailors' Civil Relief Act of 1940, state adoptions of the
                 National Consumer Act and the Uniform Consumer Credit Code, and
                 other applicable state laws regulating retail installment sales
                 contracts and loans in general and motor vehicle retail
                 installment contracts and loans in particular; and the
                 consummation of the transactions herein contemplated,
                 including, without limitation, the transfer of ownership of
                 such Contracts to the Issuer and the receipt of interest by the
                 Noteholders, will not violate any applicable federal, state or
                 local law.

                                      -28-
<PAGE>   33

          (x)    Such Contract is the legal, valid and binding obligation of the
                 related Obligor(s) thereunder and is enforceable in accordance
                 with its terms, except only as such enforcement may be limited
                 by bankruptcy, insolvency or similar laws affecting the
                 enforcement of creditors' rights generally; each party to such
                 Contract had full legal capacity to execute and deliver such
                 Contract and all other documents related thereto and to grant
                 the security interest purported to be granted thereby; the
                 terms of such Contract have not been waived, amended or
                 modified in any respect, except by instruments that are part of
                 the related Contract Documents, and no such waiver, amendment
                 or modification has caused such Contract to fail to meet all of
                 the representations, warranties and conditions, set forth
                 herein with respect thereto.

          (xi)   Such Contract contains customary and enforceable provisions
                 such as to render the rights and remedies of the holder or
                 assignee thereof adequate for the practical realization against
                 the collateral of the benefits of the security, subject, as to
                 enforceability, to bankruptcy, insolvency, reorganization or
                 similar laws affecting the enforcement of creditors' rights
                 generally.

          (xii)  As of the Closing Date, (a) there was no default, breach,
                 violation or event permitting acceleration existing under such
                 Contract (except payment delinquencies permitted by
                 subparagraph (v) above), (b) there does not exist any
                 continuing condition that with notice or lapse of time would
                 constitute a default, breach, violation or event permitting
                 acceleration existing under such Contract, and (c) the Seller
                 has not waived any such default, breach, violation or event
                 permitting acceleration except payment delinquencies permitted
                 by subparagraph (v) above.

          (xiii) As of the Closing Date each related Financed Vehicle will be
                 covered by the Blanket Insurance Policy; each of Onyx and the
                 Seller shall at all times comply with all of the provisions of
                 such insurance policy applicable to it so long as such
                 insurance policy is in effect.

          (xiv)  As of the Closing Date, (a) such Contract will require that the
                 related Obligor(s) obtain and maintain in effect for the
                 related Financed Vehicle a comprehensive and collision
                 insurance policy (i) in an amount at least equal to the lesser
                 of (x) its maximum insurable value or (y) the principal amount
                 due from the related Obligor(s) under such Contract, (ii)
                 naming Onyx as a loss payee and (iii) insuring against loss and
                 damage due to fire, theft, transportation, collision and

                                      -29-

<PAGE>   34

                 other risks generally covered by comprehensive and collision
                 coverage and (b) the Servicer shall have put in place a
                 vendor's single interest insurance policy providing coverage
                 upon repossession of the related Financed Vehicle in an amount
                 equal to the lesser of the actual cash value of such Financed
                 Vehicle, the cost of repair or replacement for such Financed
                 Vehicle and the unpaid balance of the related Contract. Each of
                 Onyx and the Seller shall at all times comply with all of the
                 provisions of such insurance policies applicable to it.

          (xv)   Such Contract was acquired by Onyx from a Dealer with which it
                 ordinarily does business, and no adverse selection procedures
                 have been utilized in selecting such Contract from all other
                 similar contracts purchased or originated by Onyx or any
                 subsidiary.

          (xvi)  Payments under such Contract have been applied in accordance
                 with the Rule of 78's Method, the Actuarial Method or the
                 Simple Interest Method, as provided in the applicable Contract,
                 and are due monthly in substantially equal amounts through its
                 Maturity Date sufficient to fully amortize the principal
                 balance of such Contract by its Maturity Date.

          (xvii) There is only one original of such Contract and such original,
                 together with all other related Contract Documents, is being
                 held by the Custodian.

         (xviii) As of the Closing Date, the Servicer has clearly marked its
                 electronic records to indicate that such Contract is owned by
                 the Issuer.

          (xix)  At the date of origination of the Contract, the original
                 principal balance of such Contract was not greater than the
                 purchase price to the related Obligor(s) (including taxes,
                 warranties, licenses and related charges) of the related
                 Financed Vehicle.

          (xx)   As of the related Cut-Off Date, the Seller has not received
                 notice that any Obligor under such Contract has filed for
                 bankruptcy.

          (xxi)  Such Contract had an original maturity of not more than 72
                 months and as of the related Cut-Off Date, such Contract has a
                 remaining maturity of 72 months or less;

          (xxii) The first scheduled monthly payment for at least 80% of the
                 Initial Contracts (by Outstanding Principal Balance) is due on
                 or before May 31, 2001, and the first scheduled monthly payment
                 for at least 90% of the Subsequent Contracts (by Outstanding
                 Principal Balance) is due on or before June 30, 2001.

         (xxiii) As of the related Cut-Off Date, such Contract has a remaining
                 principal balance of at least $500.

                                      -30-
<PAGE>   35

          (xxiv) As of the related Cut-Off Date, such Contract is secured by a
                 Financed Vehicle that has not been repossessed without
                 reinstatement.

          (xxv)  The related Obligor(s) were located in Alabama, Arizona,
                 California, Colorado, Connecticut, Delaware, Florida, Georgia,
                 Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland,
                 Massachusetts, Michigan, Minnesota, Missouri, Montana,
                 Nebraska, Nevada, New Jersey, New York, North Carolina, Ohio,
                 Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina,
                 Tennessee, Texas, Utah, Virginia, Washington or West Virginia
                 on the date of origination of such Contract.

          (xxvi) The Obligor on such Contract is either (a) a natural person
                 residing in any state or (b) another entity, provided that a
                 natural person is a joint and several Obligor with respect to
                 such Contract.

     (c) As to all of the Funded Contracts:

          (i)    The aggregate Outstanding Principal Balance payable by Obligors
                 of the Funded Contracts as of the related Cut-Off Date plus the
                 initial deposit into the Prefunding Account equals the Original
                 Pool Balance.

          (ii)   As of the related Cut-Off Date, approximately 21.56% of the
                 Outstanding Principal Balance of all Funded Contracts is
                 attributable to loans involving new Financed Vehicles, and
                 approximately 78.44% of the Outstanding Principal Balance of
                 all Funded Contracts is attributable to loans involving used
                 Financed Vehicles.

          (iii)  As of the related Cut-Off Date, the aggregate Outstanding
                 Principal Balance of all Funded Contracts originated in any
                 single state, other than California, did not equal or exceed
                 10%.

     (d) As to each Prefunded Contract (except as noted below as being
applicable only to either Precomputed Contracts or Simple Interest Contracts),
as of the related Prefunding Transfer Date (except as otherwise noted):

          (i)    The information pertaining to such Contract set forth in the
                 related Transfer Certificate is true and correct in all
                 material respects as of the related Prefunding Transfer Date.

          (ii)   As of the related Prefunding Transfer Date, such Contract was
                 secured by a valid and enforceable first priority security
                 interest in favor of Onyx in the related Financed Vehicle, and
                 such security interest is duly perfected and is prior to all
                 other liens upon and security interests in such Financed
                 Vehicle which exist or may hereafter arise or be created
                 (except, as to priority, for any lien for unpaid taxes or
                 unpaid storage or repair charges which may arise after the
                 Prefunding Transfer Date in accordance with the UCC); such
                 security interest is assignable, has been assigned by Onyx to
                 the Seller pursuant to the Purchase Agreement and, as of the
                 Prefunding Transfer Date, has been assigned by the Seller to
                 the Issuer pursuant to Section 2.01(b) hereof.

                                      -31-
<PAGE>   36

          (iii)  (A) If the related Contract is originated in a state in which
                 notation of a security interest on the Title Document (or in
                 the electronic title records) is required or permitted to
                 perfect the security interest in the related Financed Vehicle,
                 the Title Document or the electronic title records for such
                 Financed Vehicle show, or, if a new or replacement Title
                 Document is being applied for with respect to such Financed
                 Vehicle, the Title Document will be received within 180 days of
                 the related Prefunding Transfer Date and will show, Onyx named
                 as the original secured party under the related Contract as the
                 holder of a first priority security interest in such Financed
                 Vehicle, and (B) if the related Contract is originated in a
                 state in which the filing of a financing statement under the
                 UCC is required to perfect a security interest in motor
                 vehicles, such filings or recordings have been duly made and
                 show Onyx named as the original secured party under the related
                 Contract as of the related Prefunding Transfer Date, and in
                 either case, the Indenture Trustee on behalf of the Noteholders
                 and the Insurer has the same rights as such secured party has
                 or would have (if such secured party were still the owner of
                 the Contract) against all parties claiming an interest in such
                 Financed Vehicle. With respect to each Contract for which the
                 Title Document has not yet been returned from the Registrar of
                 Titles (or evidenced in the electronic title records), Onyx has
                 received written evidence that such Title Documents showing
                 Onyx as first lienholder have been applied for as of the
                 related Prefunding Transfer Date.

          (iv)   As of the related Prefunding Transfer Date, the Seller had good
                 and marketable title to and was the sole owner of each Contract
                 to be transferred to the Issuer pursuant to Section 2.01(b)
                 free of liens, claims, encumbrances and rights of others and,
                 upon transfer of such Contract to the Issuer pursuant to
                 Section 2.01(b), the Issuer will have good and marketable title
                 to, will have a first perfected security interest in and will
                 be the sole owner of such Contract free of liens, encumbrances
                 and rights of others.

          (v)    As of the related Prefunding Cut-Off Date, the most recent
                 scheduled payment due on each such Contract has been made or
                 was not delinquent more than 30 days and, to the best of the
                 Seller's knowledge, all payments on the Contract were made by
                 the related Obligors.

                                      -32-
<PAGE>   37

          (vi)   As of the related Prefunding Transfer Date, there is no lien
                 against the related Financed Vehicle for delinquent taxes.

          (vii)  As of the related Prefunding Transfer Date, there is no right
                 of rescission, offset, defense or counterclaim to the
                 obligation of the Obligor(s) to pay the unpaid principal or
                 interest due under such Contract; the operation of the terms of
                 such Contract or the exercise of any right thereunder will not
                 render such Contract unenforceable in whole or in part or
                 subject such Contract to any right of rescission, offset,
                 defense or counterclaim, and the Seller has no knowledge that
                 such right of rescission, offset, defense or counterclaim has
                 been asserted or threatened.

          (viii) As of the related Prefunding Transfer Date, to the best of the
                 Seller's knowledge, there are no liens or claims which have
                 been filed, including liens for work, labor, material, storage
                 or unpaid taxes affecting the related Financed Vehicle which
                 are or may become a lien prior to, or equal or coordinate with,
                 the security interest granted by such Contract.

          (ix)   Such Contract, and the sale of the related Financed Vehicle
                 sold thereunder, complied, at the time it was made, in all
                 material respects with all applicable federal, state and local
                 laws (and regulations thereunder), including without limitation
                 usury, equal credit opportunity, fair credit reporting,
                 truth-in-lending or other similar laws, the Federal Trade
                 Commission Act, the Fair Debt Collection Practices Act, the
                 Fair Credit Billing Act, the Magnuson-Moss Warranty Act, the
                 Federal Reserve Bond's Regulations B and Z and, the Soldiers'
                 and Sailors' Civil Relief Act of 1940, state adoptions of the
                 National Consumer Act and the Uniform Consumer Credit Code, and
                 other applicable state laws regulating retail installment sales
                 contracts and loans in general and motor vehicle retail
                 installment contracts and loans in particular; and the
                 consummation of the transactions herein contemplated,
                 including, without limitation, the transfer of ownership of
                 such Contract to the Issuer and the receipt of interest by the
                 Noteholders, will not violate any applicable federal, state or
                 local law.

          (x)    Such Contract is the legal, valid and binding obligation of the
                 related Obligor(s) thereunder and is enforceable in accordance
                 with its terms, except only as such enforcement may be limited
                 by bankruptcy, insolvency or similar laws affecting the
                 enforcement of creditors' rights generally; each party to such
                 Contract had full legal capacity to execute and deliver such
                 Contract and all other documents related thereto and to grant
                 the security interest purported to be granted thereby; the
                 terms of such Contract have not been waived, amended or
                 modified in any respect, except by instruments that are part of
                 the related Contract Documents, and no such waiver, amendment
                 or modification has caused such Contract to fail to meet all of
                 the representations, warranties and conditions set forth herein
                 with respect thereto.

                                      -33-
<PAGE>   38

          (xi)   Such Contract contains customary and enforceable provisions
                 such as to render the rights and remedies of the holder or
                 assignee thereof adequate for the practical realization against
                 the collateral of the benefits of the security, subject, as to
                 enforceability, to bankruptcy, insolvency, reorganization or
                 similar laws affecting the enforcement of creditors' rights
                 generally.

          (xii)  As of the related Prefunding Transfer Date, (a) there is no
                 default, breach, violation or event permitting acceleration
                 existing under such Contract (except payment delinquencies
                 permitted by subparagraph (v) above), (b) there does not exist
                 any continuing condition that with notice or lapse of time
                 would constitute a default, breach, violation or event
                 permitting acceleration existing under such Contract, and (c)
                 the Seller has not waived any such default, breach, violation
                 or event permitting acceleration except payment delinquencies
                 permitted by subparagraph (v) above.

          (xiii) As of the related Prefunding Transfer Date, each related
                 Financed Vehicle will be covered by the Blanket Insurance
                 Policy; each of Onyx and the Seller shall at all times comply
                 with all of the provisions of such insurance policy applicable
                 to it so long as such insurance policy is in effect.

          (xiv)  As of the related Prefunding Transfer Date, (a) such Contract
                 will require that the related Obligor(s) obtain and maintain in
                 effect for the related Financed Vehicle a comprehensive and
                 collision insurance policy (i) in an amount at least equal to
                 the lesser of (x) its maximum insurable value or (y) the
                 principal amount due from the related Obligor(s) under such
                 Contract, (ii) naming Onyx as a loss payee and (iii) insuring
                 against loss and damage due to fire, theft, transportation,
                 collision and other risks generally covered by comprehensive
                 and collision coverage and (b) the Servicer shall have put in
                 place a vendor's single interest insurance policy providing
                 coverage upon repossession of the related Financed Vehicle in
                 an amount equal to the lesser of the actual cash value of such
                 Financed Vehicle, the cost of repair or replacement for such
                 Financed Vehicle and the unpaid balance of the related
                 Contract. Each of Onyx and the Seller shall at all times comply
                 with all of the provisions of such insurance policies
                 applicable to it.

          (xv)   Such Contract was acquired by Onyx from a Dealer with which it
                 ordinarily does business, and no adverse selection procedures
                 have been utilized in selecting such Contract from all other
                 similar contracts purchased or originated by Onyx or any
                 subsidiary.

                                      -34-
<PAGE>   39

          (xvi)   Payments under such Contract have been applied in accordance
                  with Rule of 78's Method, the Actuarial Method or the Simple
                  Interest Method, as provided in the applicable Contract, and
                  are due monthly in substantially equal amounts through its
                  Maturity Date sufficient to fully amortize the principal
                  balance of such Contract by its Maturity Date.

          (xvii)  There is only one original of such Contract and such original,
                  together with all other related Contract Documents, is being
                  held by the Custodian.

          (xviii) As of the related Prefunding Transfer Date, the Servicer has
                  clearly marked its electronic records to indicate that such
                  Contract is then owned by the Issuer.

          (xix)   At the date of origination of the Contract, the original
                  principal balance of such Contract was not greater than the
                  purchase price to the related Obligor(s) (including taxes,
                  warranties, licenses and related charges) of the related
                  Financed Vehicle.

          (xx)    As of the related Prefunding Cut-Off Date, the Seller has not
                  received notice that any Obligor under such Contract has filed
                  for bankruptcy.

          (xxi)   Such Contract has an original maturity of not more than 72
                  months, and as of the related Prefunding Cut-Off Date, such
                  Contract has a remaining maturity of 72 months or less.

          (xxii)  As of the related Prefunding Cut-Off Date, such Contract has a
                  remaining principal balance of at least $500.

         (xxiii)  As of the related Prefunding Cut-Off Date, such Contract is
                  secured by a Financed Vehicle that has not been repossessed
                  without reinstatement.

          (xxiv)  The Obligor on such Contract is either (a) a natural person
                  residing in any state or (b) another entity, provided that a
                  natural person is a joint and several Obligor with respect to
                  such Contract.

          (xxv)   No more than 50% of the Prefunded Contracts transferred to the
                  Issuer as of any Prefunding Transfer Date shall be originated
                  in any one state.

     (e) None of the foregoing representations and warranties shall be construed
as, and the Seller is specifically not making, any representations and
warranties regarding the collectibility of the Contracts or the future
performance of the Contracts.

                                      -35-

<PAGE>   40

     (f) The Seller has not prepared any financial statement which accounts for
the transfer of the Trust Property (other than the Policy and the Spread
Account) hereunder to the Issuer in any manner other than as a sale of the Trust
Property (other than the Policy and the Spread Account ) by it to the Issuer,
and the Seller has not in any other non-income tax respect (including, but not
limited to, for accounting purposes) accounted for or treated the transfer of
the Trust Property (other than the Policy and the Spread Account) hereunder in
any manner other than as a sale and absolute assignment to the Issuer of the
Seller's full right, title and ownership interest in the Trust Property (other
than the Policy and the Spread Account) to the Issuer.

     SECTION 2.03. REPURCHASE OF CERTAIN CONTRACTS.

     The representations and warranties of the Seller set forth in Section 2.02
with respect to each Contract and each of the conditions set forth in Section
2.01(c) with respect to each transfer of Prefunded Contracts and Section 2.01(j)
with respect to the Prefunding Closing Date and sale of Prefunded Contracts
shall survive delivery of the Contract Documents and shall continue until the
termination of this Agreement. Upon discovery by the Seller, the Servicer, the
Insurer or a Responsible Officer of the Owner Trustee, the Indenture Trustee or
the Trust Agent that any of such representations and warranties was incorrect or
that any of such conditions was unsatisfied as of the time made or that any of
the Contract Documents relating to any such Contract has not been properly
executed by the Obligor or contains a material defect or has not been received
by the Custodian, such Person making such discovery shall give prompt notice to
the other such Persons. If any such defect, incorrectness or omission materially
and adversely affects the interest of the Noteholders, the Indenture Trustee,
the Issuer or the Insurer, the Seller shall cure the defect or eliminate or
otherwise cure the circumstances or condition in respect of which such
representation or warranty was incorrect as of the time made; provided that if
the Seller is unable to do so by the last day of the Collection Period following
the Collection Period (or, if the Seller elects, the last day of such Collection
Period) during which the Seller becomes aware of or receives written notice from
the Servicer, the Insurer or the Indenture Trustee of such defect, incorrectness
or omission, it shall repurchase such Contract on the last day of the applicable
Collection Period from the Issuer at the Purchase Amount. Upon any such
repurchase, the Issuer shall execute and deliver such instruments of transfer or
assignment, in each case without recourse, as shall be necessary to vest in the
Seller any Contract purchased hereunder. The sole remedy of the Issuer, the
Indenture Trustee or the Noteholders with respect to a breach of the Seller's
representations and warranties pursuant to Section 2.02 shall be to require the
Seller to repurchase Contracts pursuant to this Section; provided, however, that
the Seller shall indemnify the Owner Trustee, the Trust Agent, the Indenture
Trustee, the Insurer, the Issuer and the Noteholders against all costs,
expenses, losses, damages, claims and liabilities, including reasonable fees and
expenses of counsel, which may be asserted against or incurred by any of them as
a result of third-party claims arising out of the events or facts giving rise to
such breach.

                                      -36-
<PAGE>   41

     SECTION 2.04. CUSTODY OF CONTRACT FILES.

     (a) Duties of Custodian. The Custodian shall:

          (i)    maintain continuous custody of the Contract Documents in secure
                 and fire resistant facilities in accordance with customary
                 standards for such custody. Such Contract Documents shall not
                 be segregated to show the Issuer as owner thereof and the
                 Indenture Trustee as the pledgee thereof, unless the Insurer
                 requires such segregation.

          (ii)   with respect to the Contract Documents, (A) act exclusively as
                 the Custodian for the benefit of the Indenture Trustee and (B)
                 hold all Contract Documents for the exclusive use
                 (notwithstanding Sections 2.04(a)(iii) and 2.04(a)(iv) below)
                 and for the benefit of the Indenture Trustee.

          (iii)  in the event that the Servicer is not the Custodian, to the
                 extent the Servicer directs the Custodian in writing, deliver
                 certain specified Contract Documents to the Servicer to enable
                 the Servicer to service the Contracts pursuant to this
                 Agreement. At such time as the Servicer returns such Contract
                 Documents to the Custodian, the Servicer shall provide written
                 notice of such return to the Custodian. The Custodian shall
                 acknowledge receipt of the returned materials by signing the
                 Servicer's notice and shall promptly send copies of such
                 acknowledgment or receipt to the Servicer.

          (iv)   upon reasonable prior written notice, permit the Servicer, the
                 Indenture Trustee and the Insurer to examine the Contract
                 Documents in the possession, or under the control, of the
                 Custodian.

          (v)    at its own expense, maintain at all times while acting as
                 Custodian, and keep in full force and effect (A) fidelity
                 insurance, (B) theft of documents insurance, (C) fire
                 insurance, and (d) forgery insurance. All such insurance shall
                 be in amounts, with standard coverage and subject to
                 deductibles, as are customary for similar insurance typically
                 maintained by banks that act as custodian in similar
                 transactions.

     (b) Appointment of Custodian. As of the Closing Date, Onyx shall be the
Custodian of the Contract Documents; provided, however, that (i) the Indenture
Trustee (if the Notes have not been paid in full and the Indenture has not been
satisfied and discharged) and the Issuer, with the consent of the Insurer, or
(ii) the Insurer, may terminate such appointment at any time, with or without
cause by written notice to the Custodian, and upon the execution by the
Indenture Trustee at the direction of the Insurer (or, if the Notes have been
paid in full and the Indenture has been satisfied and discharged, the Issuer at
the direction of the Insurer) of a letter agreement substantially in the form of
Exhibit A attached hereto (the "APPOINTMENT OF CUSTODIAN"), revocably appointing
such other entity acceptable to the Insurer as agent of and bailee for the
Indenture Trustee (or, if applicable, the Trust) to act as Custodian (the
"SUCCESSOR CUSTODIAN") of the Contract Documents, such Successor Custodian shall
be so appointed and shall from the effective date of such Appointment of
Custodian retain custody of the Contract Documents and any and all other
documents relating to a Contract or the related Obligor or Financed Vehicle. As
of the effective date of such Appointment of Custodian, the Contract Documents
and any and all other documents relating to a Contract or the related Obligor or
Financed Vehicle will be delivered to the Successor Custodian in its capacity as
agent of and bailee for the Indenture Trustee (or, if applicable, the Trust).

     For so long as the Servicer is the Custodian of the Contract Documents, the
Servicer need not maintain the Contract Documents held by it in a file area
physically separate from the other installment sales contracts or loans owned or
serviced by it or any of its Affiliates, unless the Insurer requires such
segregation.

                                      -37-
<PAGE>   42

     SECTION 2.05. DUTIES OF SERVICER RELATING TO THE CONTRACTS.

     (a) Safekeeping. The Servicer, in its capacity as servicer, shall hold the
Contract Files and any Contract Documents held by it in accordance with this
Agreement on behalf of the Issuer, the Indenture Trustee and the Insurer for the
use and benefit of all present and future Noteholders, and maintain such
accurate and complete accounts, records and computer systems pertaining to each
Contract File as shall enable the Issuer to comply with this Agreement. In
performing its duties as servicer, the Servicer shall act with reasonable care,
using that degree of skill and attention that the Servicer exercises with
respect to the files relating to all comparable automobile contracts that the
Servicer owns or services for itself or others. The Servicer shall (i) conduct,
or cause to be conducted, periodic physical inspections of the Contract Files
(and the Contract Documents, if the Servicer is acting as Custodian) held by it
under this Agreement and of the related accounts, records and computer systems;
(ii) maintain the Contract Files (and the Contract Documents, if the Servicer is
acting as Custodian) in such a manner as shall enable the Issuer, the Indenture
Trustee and the Insurer to verify the accuracy of the Servicer's record keeping;
(iii) promptly report to the Issuer, the Indenture Trustee and the Insurer any
failure on its part to hold the Contract Files (and the Contract Documents, if
the Servicer is acting as Custodian) and maintain its accounts, records and
computer systems as herein provided and (iv) promptly take appropriate action to
remedy any such failure.

     (b) Maintenance of and Access to Records. The Servicer shall maintain each
Contract File (other than the Contract Documents, unless the Servicer is acting
as Custodian) at the address of the Servicer set forth in Section 9.04, or at
such other location as shall be specified to the Issuer, the Indenture Trustee
and the Insurer by 30 days' prior written notice. The Servicer shall permit the
Issuer, the Indenture Trustee and the Insurer or their respective duly
authorized representatives, attorneys or auditors to inspect the Contract Files
and the related accounts, records and computer systems maintained by the
Servicer at such times as such Persons may request.

     (c) Release of Documents. If the Servicer is acting as Custodian pursuant
to Section 2.04, upon instruction from the Indenture Trustee (a copy of which
shall be furnished to the Issuer and the Insurer), the Servicer shall release
any document in the Contract Files to the Indenture Trustee, the Indenture
Trustee's agent, or the Indenture Trustee's designee, as the case may be, at
such place or places as the Indenture Trustee may designate, as soon as
practicable.

     (d) Monthly Reports. On the Servicer Report Date of each month, commencing
with the month next succeeding the month of the Closing Date, the Servicer shall
deliver to the Issuer, the Indenture Trustee and the Insurer a certificate of a
Servicing Officer stating (i) the Contract Number and outstanding principal
balance of each Contract that has become a Liquidated Contract since the
Business Day immediately preceding the date of the last certificate delivered
pursuant to this subsection (or since the Closing Date in the case of the first
such certificate); (ii) that, if such Contract has been the subject of a Full
Prepayment pursuant to clause (a) of the definition of the term "Full
Prepayment" or is a Liquidated Contract pursuant to clause (iii) of the
definition of the term "Liquidated Contract," all proceeds received in respect
thereof have been deposited in or credited to the Collection Account in

                                      -38-
<PAGE>   43

accordance with Section 4.02; (iii) that, if such Contract has been the subject
of a Full Prepayment pursuant to clause (b) of the definition of the term "Full
Prepayment," the correct Purchase Amount has been deposited in or credited to
the Collection Account in accordance with Section 2.03, 3.07 or 4.02; (iv) that,
if such Contract is a Liquidated Contract pursuant to clause (ii) of the
definition of the term "Liquidated Contract," there have been deposited in or
credited to the Collection Account the related Net Liquidation Proceeds in
accordance with Section 4.02; and (v) that the Indenture Trustee is authorized
to release such Contract and the related Contract Documents as provided herein.

     (e) Schedule of Title Documents. The Servicer shall deliver to the
Indenture Trustee, the Issuer and the Insurer (i) within 60 days of the Closing
Date with respect to the Funded Contracts and within 60 days of the Prefunding
Closing Date with respect to the Prefunded Contracts, a schedule of Title
Documents for Financed Vehicles which, as of the Closing Date or the Prefunding
Closing Date, as applicable, did not show Onyx as first lienholder and (ii)
within 180 days of the Closing Date with respect to the Funded Contracts and
within 180 days of the Prefunding Closing Date with respect to the Prefunded
Contracts, a schedule of Title Documents for Financed Vehicles which, as of the
date prior to such delivery, do not show Onyx as first lienholder and as to
which the Seller is obligated to repurchase pursuant to the provisions hereof.

     (f) Electronic Marking of Contracts; Possession. The Servicer shall cause
the electronic record of the Contracts maintained by it to be clearly marked to
indicate that the Contracts have been sold to the Issuer and shall not in any
way assert or claim an ownership interest in the Contracts. It is intended that
pursuant to the applicable provisions of Sections 2.04 and 2.05 hereof and the
Appointment of Custodian, the Custodian on behalf of the Indenture Trustee and
the Insurer shall be deemed to have possession of the Contract Documents for
purposes of Section 9-305 of the UCC of the state in which the Contract
Documents are located.

     SECTION 2.06. INSTRUCTIONS; AUTHORITY TO ACT.

     The Servicer shall be deemed to have received proper instructions (a copy
of which shall be furnished to the Issuer and the Insurer) with respect to the
Contract Files upon its receipt of written instructions signed by a Responsible
Officer of the Indenture Trustee.

     SECTION 2.07. INDEMNIFICATION.

     Subject to Section 7.02, the Servicer shall indemnify the Issuer, the Owner
Trustee, the Trust Agent, the Indenture Trustee, the Insurer, the Custodian and
the Noteholders for any and all liabilities, obligations, losses, compensatory
damages, payments, costs or expenses of any kind whatsoever (including the
reasonable fees and expenses of counsel) that may be imposed on, incurred by or
asserted against the Issuer, the Owner Trustee, the Trust Agent, the Indenture
Trustee, the Insurer, the Custodian or the Noteholders as the result of any
improper act or omission in any way relating to the maintenance and custody by
the Servicer of the Contract Files, or the failure of the Servicer to perform
its duties and service the Contracts in compliance with the terms of this
Agreement; provided, however, that the Servicer shall not be liable to the Owner
Trustee, the Trust Agent, the Indenture Trustee, the Custodian or the Insurer
for any portion of any such amount resulting from the willful misfeasance, bad
faith or negligence of the Owner Trustee, the Trust Agent, the Indenture
Trustee, the Custodian or the Insurer, respectively. The Servicer shall also
indemnify and hold harmless the Issuer, the Trust Property, the Noteholders, the
Custodian, the Indenture Trustee, the Trust Agent and the Insurer against any
taxes that may be asserted at any time against any of them with respect to the
Contracts, including any sales, gross receipts, general corporation, personal
property, privilege or license taxes (but exclusive of federal or other income

                                      -39-
<PAGE>   44

taxes arising out of payments on the Contracts) and the costs and expenses in
defending against such taxes. The Servicer shall (i) immediately notify the
Issuer and the Indenture Trustee if a claim is made by a third party with
respect to the Contracts, (ii) assume, with the consent of the Issuer, the
Indenture Trustee and the Insurer, the defense of any such claim, (iii) pay all
expenses in connection therewith, including counsel fees, and (iv) promptly pay,
discharge and satisfy any judgment or decree which may be entered against the
Servicer, the Issuer, the Owner Trustee, the Trust Agent, the Indenture Trustee,
the Insurer, the Custodian or the Noteholders with respect to such Contracts.

     SECTION 2.08. EFFECTIVE PERIOD AND TERMINATION.

     The appointment of Onyx as custodian shall become effective as of the
Closing Date and shall continue in full force and effect until the earlier of
(i) the execution of the Appointment of Custodian or (ii) the Class A-4 Final
Scheduled Distribution Date. If Onyx shall subsequently resign as Servicer in
accordance with the terms of this Agreement or if all of the rights and
obligations of the Servicer shall have been terminated pursuant to Section 7.01,
the appointment of the Servicer as Custodian may be terminated by the Insurer,
or if an Insurer Default has occurred and is continuing, by Holders evidencing
not less than 25% of the outstanding principal amount of the Notes, acting
together as a single Class, or by the Indenture Trustee. As soon as practicable
after any termination of such appointment, Onyx as Custodian and Onyx as
Servicer shall, at the Servicer's expense, deliver or cause the delivery of all
Contract Documents and all Contract Files (including those held in microfiche or
electronic form) to the Indenture Trustee or its agent (or, if the Indenture has
been satisfied and discharged, as directed by the Trust, with the consent of the
Insurer) at such place or places as the applicable party may reasonably
designate and shall cooperate in good faith to effect such delivery. The
foregoing notwithstanding, if the Servicer is acting as Custodian, the Servicer
shall, at the request of the Insurer, deliver the Contract Documents to the
Indenture Trustee in the event that such delivery is required by any Rating
Agency to consider the Notes investment grade without consideration of the
Policy.

     SECTION 2.09. NONPETITION COVENANT.

     (a) Neither the Seller nor the Servicer shall petition or otherwise 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) The Servicer shall not, nor cause the Seller to, petition or otherwise
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.

                                      -40-
<PAGE>   45

     SECTION 2.10. COLLECTING TITLE DOCUMENTS NOT DELIVERED AT THE CLOSING DATE.

     In the case of any Funded Contract or Prefunded Contract in respect of
which, in place of a Title Document, the Custodian received on the Closing Date
or the Prefunding Closing Date, as applicable, written evidence from the Dealer
selling the related Financed Vehicle that, or otherwise in respect of which, the
Title Document for such Financed Vehicle showing Onyx as first lienholder has
been applied for from the Registrar of Titles, the Servicer shall use its best
efforts to collect (or to obtain evidence in the electronic title records of)
such Title Document from the Registrar of Titles as promptly as possible. If
such Title Document showing Onyx as first lienholder is not received by the
Servicer (or verified by the Servicer in the electronic title records) within
180 days after the Closing Date with respect to the Funded Contracts or within
180 days after the Prefunding Closing Date with respect to the Prefunded
Contracts, then the representation and warranty in Section 2.02(b)(iii) as to
any such Funded Contracts or the representation and warranty in Section
2.02(d)(iii) as to any such Prefunded Contracts in respect of such Contract
shall be deemed to have been incorrect in a manner that materially and adversely
affects the Noteholders, and the Seller shall be obligated to repurchase such
Contract in accordance with Section 2.03.

                                   ARTICLE III

                    ADMINISTRATION AND SERVICING OF CONTRACTS

     SECTION 3.01. DUTIES OF SERVICER.

     The Servicer shall manage, service, administer, and make collections on the
Contracts. The Servicer agrees that its servicing of the Contracts shall be
carried out in accordance with reasonable care and, to the extent more exacting,
the procedures used by the Servicer in respect of such contracts serviced by it
for its own account; provided, however, that, subject to Section 3.02 as to
extensions, the Servicer shall not release or waive the right to collect the
unpaid balance of any Contract. The Servicer's duties shall include collection
and posting of all payments, responding to inquiries of Obligors on the
Contracts, investigating delinquencies, sending payment coupons to Obligors,
reporting tax information to Obligors, accounting for collections, furnishing
monthly and annual statements to the Indenture Trustee, the Issuer and the
Insurer with respect to distributions and the preparation of U.S. Partnership
Tax Returns (Form 1065) for the Owner Trustee to sign and file on an annual
basis, based on a tax year for the Issuer that is the calendar year and any
other tax forms required by any federal, state or local tax authority including
with respect to original issue discount, if any. The Servicer shall have,
subject to the terms hereof, full power and authority, acting alone, and subject
only to the specific requirements and prohibitions of this Agreement, to do any
and all things in connection with such managing, servicing, administration, and
collection that it may deem necessary or desirable; provided, however, that the
Servicer shall commence repossession efforts in respect of any Financed Vehicle
when any payment on the related Contract of which is four or more months
delinquent. Without limiting the generality of the foregoing, but subject to the
provisions of this Agreement, the Servicer is authorized and empowered by the
Indenture Trustee and the Issuer to execute and deliver, on behalf of itself,
the Issuer, the Insurer, the Noteholders, the Indenture Trustee or any of them,
any and all instruments of satisfaction or cancellation, or partial or full
release or discharge, and all other comparable instruments, with respect to the
Contracts or to the Financed Vehicles. The Issuer shall furnish the Servicer any
documents necessary or appropriate to enable the Servicer to carry out its
servicing and administrative duties hereunder. The Servicer may engage agents
and subservicers to fulfill its duties hereunder; provided, however, that the
Servicer shall remain at all times personally liable for the acts (and failures
to act) of such agents and subservicers.

                                      -41-
<PAGE>   46

     On or prior to the Closing Date, the Servicer shall deliver to the Owner
Trustee, the Trust Agent, the Indenture Trustee and the Insurer a list of
Servicing Officers of the Servicer involved in, or responsible for, the
administration and servicing of the Contracts, which list shall from time to
time be updated by the Servicer on request of the Owner Trustee, the Trust
Agent, the Indenture Trustee or the Insurer.

     On the Closing Date, the Servicer shall deposit in the Collection Account
(i) all installments of Monthly P&I due on or after the Initial Cut-Off Date and
received by the Servicer at least two Business Days prior to the Closing Date;
(ii) the proceeds of each Full Prepayment of any Contract and all partial
prepayments on Simple Interest Contracts received by the Servicer on or after
the Initial Cut-Off Date and at least two Business Days prior to the Closing
Date; and (iii) all Net Liquidation Proceeds and Net Insurance Proceeds received
with respect to a Financed Vehicle to which an Initial Contract relates received
on or after the Initial Cut-Off Date and at least two Business Days prior to the
Closing Date.

     On each Prefunding Transfer Date, the Servicer shall deposit in the
Collection Account (i) all installments of Monthly P&I due on or after the
related Prefunding Cut-Off Date and received by the Servicer at least two
Business Days prior to such Prefunding Transfer Date; (ii) the proceeds of each
Full Prepayment of any Prefunded Contract and all partial prepayments on Simple
Interest Contracts received by the Servicer on or after the related Prefunding
Cut-Off Date and at least two Business Days prior to such Prefunding Transfer
Date; and (iii) all Net Liquidation Proceeds and Net Insurance Proceeds received
with respect to a Financed Vehicle to which a Prefunded Contract being
transferred on such date relates, received on or after the related Prefunding
Cut-Off Date and at least two Business Days prior to such Prefunding Transfer
Date.

     Subject to Section 4.02(a) respecting deposits in the Payahead Account, the
Servicer shall deposit in or credit to the Collection Account within two
Business Days of receipt all collections of Monthly P&I due on or after the
related Cut-Off Date received by it on the Contracts together with the proceeds
of all Full Prepayments on all Contracts and all partial prepayments on Simple
Interest Contracts, and any accompanying interest. The Servicer shall likewise
deposit in the Collection Account within two Business Days of receipt all Net
Liquidation Proceeds and Net Insurance Proceeds. As of the last day of each
Collection Period, all amounts received in each Collection Period shall be
applied by the Servicer with respect to each Contract, first, to the Servicer as
additional servicing compensation any amounts due for late fees, extension fees
or similar charges, second to the payment of Monthly P&I, and third, in the case
of partial prepayments on Precomputed Contracts, to the Payahead Account. The
foregoing requirements for deposit in the Collection Account are exclusive, it
being understood that collections in the nature of late payment charges or
extension fees may, but need not be deposited in the Collection Account and may
be retained by the Servicer as additional servicing compensation.

     With respect to payments of Monthly P&I made by Obligors to the Servicer's
lock box, the Servicer shall direct the Person maintaining the lock box to
deposit the amount collected on the Contracts within one Business Day to the
Clearing Account. Such amounts shall be withdrawn from the Clearing Account and
deposited in the Collection Account no later than the next following Business
Day.

                                      -42-
<PAGE>   47

     In order to facilitate the servicing of the Contracts by the Servicer, the
Servicer shall retain, subject to and only to the extent permitted by the
provisions of this Agreement, all collections on the Contracts prior to the time
they are remitted or credited, in accordance with such provisions, to the
Collection Account or the Payahead Account, as the case may be. The Servicer
acknowledges that the unremitted collections on the Contracts are part of the
Trust Property and the Servicer agrees to act as custodian and bailee of the
Indenture Trustee, the Issuer and the Insurer in holding such monies and
collections. The Servicer agrees, for the benefit of the Indenture Trustee, the
Issuer, the Noteholders and the Insurer, to act as such custodian and bailee,
and to hold and deal with such monies and such collections, as custodian and
bailee for the Indenture Trustee, the Issuer and the Insurer, in accordance with
the provisions of this Agreement.

     The Servicer shall retain all data (including, without limitation,
computerized title records) relating directly to or maintained in connection
with the servicing of the Contracts at the address of the Servicer set forth in
Section 9.04 or, upon 15 days' notice to the Issuer, the Indenture Trustee and
the Insurer, at such other place where the servicing offices of the Servicer are
located, and shall give the Issuer, the Indenture Trustee and the Insurer access
to all data (including, without limitation, computerized title records) at all
reasonable times, and, while a Servicer Default shall be continuing, the
Servicer shall, on demand of the Issuer, the Indenture Trustee or the Insurer
deliver or cause to be delivered to the Issuer, the Indenture Trustee or the
Insurer, as the case may be, all data (including, without limitation,
computerized title records and, to the extent transferable, related operating
software) necessary for the servicing of the Contracts and all monies collected
by it and required to be deposited in or credited to the Collection Account or
the Payahead Account, as the case may be.

     All deposits made by the Servicer in any Trust Account shall be made in
immediately available funds.

     The Servicer shall be responsible for the payment of the fees of the
Indenture Trustee, the Owner Trustee and the Trust Agent; provided that any such
fees not paid as of a Distribution Date shall be paid as provided in Section
4.03(ii).

     SECTION 3.02. COLLECTION OF CONTRACT PAYMENTS.

     The Servicer shall use its best efforts to collect all payments called for
under the terms and provisions of the Contracts as and when the same shall
become due and shall use its best efforts to cause each Obligor to make all
payments in respect of his or her Contract to the Servicer. Consistent with the
foregoing, the Servicer may in its discretion (i) waive any late payment charges
in connection with delinquent payments on a Contract or prepayment charges and
(ii) in order to work out a default or an impending default due to the financial
condition of an Obligor, grant up to three extensions of the Due Date of any
payment for periods of 30 days or less, such that the Maturity Date of no
Contract shall, under any circumstances, extend more than 120 days past the
originally scheduled date of the last payment on such Contract and in no event
beyond the Class A-4 Final Scheduled Distribution Date. The Servicer shall not
extend the Maturity Date of a Contract except as provided in clause (ii) of the
preceding sentence. Except as explicitly permitted by this paragraph, the
Servicer shall not change any material term of a Contract, including but not
limited to the interest rate, the payment amounts or due dates, or the property
securing such Contract.

                                      -43-
<PAGE>   48

     SECTION 3.03. REALIZATION UPON CONTRACTS.

     The Servicer shall use its best efforts, consistent with the servicing
standard specified in Section 3.01, to repossess or otherwise convert the
ownership of the Financed Vehicle securing any Contract as to which no
satisfactory arrangements can be made for collection of delinquent payments.
Such servicing procedures may include reasonable efforts to realize upon any
recourse to Dealers and selling the Financed Vehicle at public or private sale.
In connection with such repossession or other conversion, the Servicer shall
follow such practices and procedures as it shall deem necessary or advisable and
as shall be normal and usual for prudent holders of retail installment sales
contracts and as shall be in compliance with all applicable laws, and, in
connection with the repossession of any Financed Vehicle or any contract in
default, may commence and prosecute any proceedings in respect of such Contract
in its own name or, if the Servicer deems it necessary, in the name of the
Issuer or the Indenture Trustee or on behalf of the Issuer or the Indenture
Trustee. The Servicer's obligations under this Section are subject to the
provision that, in the case of damage to a Financed Vehicle from an uninsured
cause, the Servicer shall not be required to expend its own funds in repairing
such motor vehicle unless it shall determine (i) that such restoration will
increase the proceeds of liquidation of the related Contract, after
reimbursement to itself for such expenses and (ii) that such expenses will be
recoverable by it either as Liquidation Expenses or as expenses recoverable
under an applicable insurance policy or under an insurance reserve established
by the Servicer. The Servicer shall be responsible for all other costs and
expenses incurred by it in connection with any action taken in respect of a
Defaulted Contract; provided, however, that it shall be entitled to
reimbursement of such costs and expenses to the extent they constitute
Liquidation Expenses or expenses recoverable under an applicable insurance
policy. All Net Liquidation Proceeds and Net Insurance Proceeds shall be
deposited directly in or credited to the Collection Account (without deposit in
any intervening account) to the extent required by Section 4.02.

     SECTION 3.04. INSURANCE.

     The Servicer shall cause to be maintained the Blanket Insurance Policy, and
the Servicer shall cause the Indenture Trustee to be the named payee thereunder
with respect to the Contracts; provided, however, that this obligation may be
eliminated or modified in any manner (and this Agreement shall be amended in
accordance with any such elimination or modification as the parties to the
Insurance Agreement and the Rating Agencies may agree) with the consent of the
Insurer but without any requirement to obtain the consent of any Noteholders.

     SECTION 3.05. MAINTENANCE OF SECURITY INTERESTS IN FINANCED VEHICLES.

     The Servicer shall take such steps as are necessary to maintain continuous
perfection and priority of the security interest created by each Contract in the
related Financed Vehicle, including but not limited to, obtaining the execution
by the related Obligor and the recording, registering, filing, re-recording,
re-registering, and refiling of all security agreements, financing statements,
continuation statements or other instruments as are necessary to maintain the
security interest granted by such Obligor under each respective Contract. The
Issuer and the Indenture Trustee each hereby authorize the Servicer to take such
steps as are necessary to re-perfect such security interest on behalf of the
Issuer in the event of the relocation of a Financed Vehicle or for any other
reason. In the event that the assignment of a Contract to the Issuer and the
subsequent pledge thereof by the Issuer to the Indenture Trustee is
insufficient, without a notation on the related Financed Vehicle's certificate
of

                                      -44-

<PAGE>   49

title (or, if applicable, the electronic title record), or without fulfilling
any additional administrative requirements under the laws of the state in which
the Financed Vehicle is located, to grant to the Issuer a perfected security
interest in the related Financed Vehicle and to pledge such perfected security
interest to the Indenture Trustee, Onyx hereby agrees that the identification of
Onyx as the secured party on the certificate of title (or, if applicable, the
electronic title record) is deemed to be in its capacity as agent of the
Indenture Trustee and further agrees to hold such certificate of title (or, if
applicable, the electronic title record) as the Indenture Trustee's agent and
custodian; provided that, except as provided in Section 7.01 and the Insurance
Agreement, neither the Servicer nor Onyx shall make, nor shall the Issuer or
Noteholders have the right to require that the Servicer or Onyx make, any such
notation on the related Financed Vehicles' certificate of title (or, if
applicable, the electronic title record) or fulfill any such additional
administrative requirement of the laws of the state in which a Financed Vehicle
is located.

     SECTION 3.06. COVENANTS, REPRESENTATIONS AND WARRANTIES OF SERVICER.

     The Servicer hereby makes the following covenants, representations and
warranties on which (i) the Issuer is deemed to have relied in acquiring the
Contracts and (ii) the Insurer is deemed to have relied in issuing the Policy.
Such covenants, representations and warranties speak as of the execution and
delivery of this Agreement and as of the Closing Date or the related Prefunding
Transfer Date, as applicable, but shall survive the sale, transfer and
assignment of the Contracts to the Issuer and the pledge thereof to the
Indenture Trustee pursuant to the Indenture.

     (a) The Servicer covenants as to the Contracts:

          (i)    The Financed Vehicle securing each Contract shall not be
                 released from the lien granted by the Contract in whole or in
                 part, except as contemplated herein.

          (ii)   The Servicer shall not impair the rights of the Noteholders or
                 the Insurer in the Contracts.

          (iii)  The Servicer shall not increase the number of payments under a
                 Contract, nor increase the amount financed under a Contract,
                 nor extend or forgive payments on a Contract, except as
                 provided in Section 3.02.

          (iv)   The Servicer may consent to the sale or transfer by an Obligor
                 of any Financed Vehicle if the original Obligor under the
                 related Contract remains liable under such Contract and the
                 transferee assumes all of the Obligor's obligations thereunder
                 and upon doing so the credit profile with respect to such
                 Obligor will not be changed from adequate to speculative by
                 virtue of the addition of the transferee's obligation
                 thereunder.

                                      -45-
<PAGE>   50

     (b) The Servicer represents and warrants as of the Closing Date:

          (i)    The Servicer (1) has been duly organized, is validly existing
                 and in good standing as a corporation organized and existing
                 under the laws of the State of Delaware, (2) has qualified to
                 do business as a foreign corporation and is in good standing in
                 each jurisdiction where the character of its properties or the
                 nature of its activities makes such qualification necessary,
                 and (3) has full power, authority and legal right to own its
                 property, to carry on its business as presently conducted, and
                 to enter into and perform its obligations under this Agreement.

          (ii)   The execution and delivery by the Servicer of this Agreement
                 are within the corporate power of the Servicer and have been
                 duly authorized by all necessary corporate action on the part
                 of the Servicer. Neither the execution and delivery of this
                 Agreement, nor the consummation of the transactions herein
                 contemplated, nor compliance with the provisions hereof, will
                 conflict with or result in a breach of, or constitute a default
                 under, any of the provisions of any law, governmental rule,
                 regulation, judgment, decree or order binding on the Servicer
                 or its properties or the Certificate of Incorporation or Bylaws
                 of the Servicer, or any of the provisions of any indenture,
                 mortgage, contract or other instrument to which the Servicer is
                 a party or by which it is bound or result in the creation or
                 imposition of any lien, charge or encumbrance upon any of its
                 property pursuant to the terms of any such indenture, mortgage,
                 contract or other instrument.

          (iii)  Other than consents that have been obtained prior to the
                 Closing Date, the Servicer is not required to obtain the
                 consent of any other party or any consent, license, approval or
                 authorization, or registration or declaration with, any
                 governmental authority, bureau or agency in connection with the
                 execution, delivery, performance, validity or enforceability of
                 this Agreement.

          (iv)   This Agreement has been duly executed and delivered by the
                 Servicer and, assuming the due authorization, execution and
                 delivery hereof by the Issuer, the Trust Agent and the
                 Indenture Trustee, constitutes a legal, valid and binding
                 obligation of the Servicer enforceable against the Servicer in
                 accordance with its terms (subject to applicable bankruptcy and
                 insolvency laws and other similar laws affecting the
                 enforcement of creditors' rights generally).

          (v)    There are no actions, suits or proceedings pending or, to the
                 knowledge of the Servicer, threatened against or affecting the
                 Servicer, before or by any court, administrative agency,
                 arbitrator or governmental body with respect to any of the
                 transactions contemplated by this Agreement, or which will, if
                 determined adversely to the Servicer, materially and adversely
                 affect it or its business, assets, operations or condition,
                 financial or otherwise, or materially and adversely affect the
                 Servicer's ability to perform its obligations under this
                 Agreement. The Servicer is not in default with respect to any
                 order of any court, administrative agency, arbitrator or
                 governmental body so as to materially and adversely affect the
                 transactions contemplated by the above-mentioned documents.

          (vi)   The Servicer has obtained or made all necessary consents,
                 approvals, waivers and notifications of creditors, lessors and
                 other nongovernmental persons, in each case, in connection with
                 the execution and delivery of this Agreement, and the
                 consummation of all the transactions herein contemplated.

                                      -46-

<PAGE>   51

     SECTION 3.07. PURCHASE OF CONTRACTS UPON BREACH BY SERVICER.

     The Servicer or the Issuer shall inform the other party and the Indenture
Trustee and the Insurer promptly, in writing, upon the discovery of any breach
of the covenants, representations and warranties set forth in Section 3.06 or of
the covenants set forth in Sections 3.02 or 3.05. Unless the breach shall have
been cured within 30 days following such discovery or receipt of notice of such
breach, the Servicer shall purchase any Contract materially and adversely
affected by such breach from the Issuer. As consideration for the Contract, the
Servicer shall remit the Purchase Amount on the Business Day preceding the
Servicer Report Date next succeeding the end of such 30-day cure period in the
manner specified in Section 4.02(a). The sole remedy of the Issuer, the
Indenture Trustee, or the Noteholders with respect to a breach of Section 3.02,
3.05 or 3.06 shall be to require the Servicer to purchase Contracts pursuant to
this Section 3.07; provided, however, that the Servicer shall indemnify the
Owner Trustee, the Indenture Trustee, the Insurer, the Issuer, the Custodian and
the Noteholders against all costs, expenses, losses damages, claims and
liabilities, including reasonable fees and expenses of counsel, which may be
asserted against or incurred by any of them as a result of third-party claims
arising out of the events or facts giving rise to such breach.

     Any successor Servicer appointed pursuant to Section 7.02 shall not be
obligated to purchase Contracts pursuant to this Section 3.07 with respect to
any breaches by any prior Servicer.

     SECTION 3.08. SERVICING COMPENSATION.

     As compensation for the performance of its obligations under this Agreement
and subject to the terms of this Section, the Servicer shall be entitled to
receive on each Distribution Date the Servicing Fee in respect of each Contract
that was Outstanding at the beginning of the Collection Period ending
immediately prior to such Distribution Date; provided, however, that with
respect to the first Distribution Date the Servicer will be entitled to receive
the Servicing Fee in respect of each Outstanding Initial Contract as of the
Initial Cut-Off Date. As servicing compensation in addition to the Servicing
Fee, the Servicer shall be entitled (i) to retain all late payment charges,
extension fees and similar items paid in respect of, under the circumstances and
in the manner set forth in the Contracts, (ii) to receive, in respect of each
Rule of 78's Contract that is prepaid in full prior to its Maturity Date, the
amount by which the outstanding principal balance of such Contract (determined
in accordance with the Rule of 78's Method) exceeds the Principal Balance of
such Contract at the time of such prepayment and (iii) to receive all investment
earnings on funds credited to the Collection Account and the Payahead Account;
provided, however, that the Servicer agrees that each amount payable to it
pursuant to clause (ii) of this Section shall be deposited in the Spread Account
and applied in accordance with the Insurance Agreement. The Servicer shall pay
all expenses incurred by it in connection with its servicing activities
hereunder and shall not be entitled to reimbursement of such expenses except to
the extent provided in Section 3.03.

                                      -47-
<PAGE>   52

     SECTION 3.09. REPORTING BY THE SERVICER.

     (a) No later than 3:00 p.m. New York City time on each Servicer Report
Date, the Servicer shall deliver (by telex, facsimile, electronic transmission,
first class mail, overnight courier or personal delivery) to the Issuer, the
Trust Agent, the Indenture Trustee and the Insurer a statement (the
"DISTRIBUTION DATE STATEMENT") setting forth with respect to the next succeeding
Distribution Date:

          (i)    the Note Interest Distributable Amount for such Distribution
                 Date;

          (ii)   the Note Principal Distributable Amount for such Distribution
                 Date and the portion of the Note Principal Distributable
                 Amount, if any, constituting the Accelerated Principal
                 Distributable Amount;

          (iii)  the Note Distributable Amount for such Distribution Date;

          (iv)   the Premium payable to the Insurer;

          (v)    the amount to be on deposit in the Spread Account on such
                 Distribution Date, before and after giving effect to deposits
                 thereto and withdrawals therefrom to be made in respect of such
                 Distribution Date;

          (vi)   the amount of the withdrawal, if any, required to be made from
                 the Spread Account by the Indenture Trustee pursuant to Section
                 4.04(b);

          (vii)  the aggregate Servicing Fee with respect to the Contracts for
                 the related Collection Period;

          (viii) the amount of fees paid to the Owner Trustee, the Indenture
                 Trustee and Trust Agent with respect to the related Collection
                 Period;

          (ix)   the amount of any Note Interest Carryover Shortfall and Note
                 Principal Carryover Shortfall on such Distribution Date and the
                 change in such amounts from those with respect to the
                 immediately preceding Distribution Date;

          (x)    the number of, and aggregate amount of, monthly principal and
                 interest payments due on the Contracts which are delinquent as
                 of the end of the related Collection Period presented on a
                 30-day, 60-day and 90-day basis;

          (xi)   the Net Collections and the Policy Claim Amount, if any, for
                 such Distribution Date;

                                      -48-
<PAGE>   53

          (xii)  the aggregate amount of Liquidation Proceeds received for
                 Defaulted Contracts;

          (xiii) the net credit losses and Cram Down Losses for the Collection
                 Period;

          (xiv)  the number and net outstanding balance of Contracts for which
                 the Financed Vehicle has been repossessed;

          (xv)   the Pool Balance;

          (xvi)  for each Distribution Date occurring during and immediately
                 following the end of the Funding Period, the amount on deposit
                 in each of the Prefunding Account and the Capitalized Interest
                 Account on such Distribution Date, before and after giving
                 effect to withdrawals therefrom to be made in respect of such
                 Distribution Date; and

          (xvii) for the Mandatory Partial Redemption Date, the Mandatory
                 Partial Redemption Amount, if any.

Each such Distribution Date Statement shall be accompanied by an Officers'
Certificate of the Servicer, which Officers' Certificate shall state that the
computations reflected in such statement were made in conformity with the
requirements of this Agreement.

     (b) On each Servicer Report Date, the Servicer shall deliver to the Issuer,
the Trust Agent, the Indenture Trustee and the Insurer a report, in respect of
the immediately preceding Collection Period, setting forth the following:

          (i)    the aggregate amount, if any, paid by or due from it for the
                 purchases of Contracts which the Seller or the Servicer has
                 become obligated to repurchase or purchase pursuant to Sections
                 2.03 or 3.07;

          (ii)   the net amount of funds which have been deposited in or
                 credited to the Collection Account or the Payahead Account in
                 respect of such Collection Period (including amounts, if any,
                 collected during the next preceding Collection Period and
                 deposited in the Payahead Account pursuant to Section 4.02)
                 after giving effect to all permitted deductions therefrom
                 pursuant to Section 4.02;

          (iii)  with respect to each Contract that became a Liquidated Contract
                 during the Collection Period, the following information:

                 (A) its Contract Number;

                 (B) the effective date as of which such Contract became a
                     Liquidated Contract;

                                      -49-
<PAGE>   54

                 (C) its Monthly P&I and Principal Balance as of the close of
                     business on the last day of the preceding Collection Period
                     (or as of the Closing Date in the case of the first
                     Distribution Date); and

                 (D) if less than 100% of the outstanding principal balance of
                     and accrued and unpaid interest was recovered on such
                     Liquidated Contract, the amount of the Net Liquidation
                     Proceeds or Net Insurance Proceeds;

          (iv)   with respect to each Contract which was the subject of a Full
                 Prepayment during such Collection Period, the following
                 information:

                 (A) its Contract Number; and

                 (B) the date of such Full Prepayment;

          (v)    the Contract Numbers, Monthly P&I, Principal Balances and
                 Maturity Dates of all Contracts which became Defaulted
                 Contracts during such Collection Period;

          (vi)   any other information relating to the Contracts reasonably
                 requested by the Owner Trustee, the Trust Agent, the Indenture
                 Trustee or the Insurer;

          (vii)  the amount of Net Liquidation Proceeds and Net Insurance
                 Proceeds which have been deposited in or credited to the
                 Collection Account in respect of the Collection Period ending
                 immediately prior to such Servicer Report Date and the
                 cumulative amount of Net Liquidation Proceeds and Net Insurance
                 Proceeds deposited in or credited to the Collection Account
                 during the preceding Collection Periods;

          (viii) with respect to each Distribution Date during and immediately
                 following the end of the Funding Period, the Capitalized
                 Interest Amount, if any, with respect to the related Collection
                 Period and the amount, if any, withdrawn from the Capitalized
                 Interest Account pursuant to this Agreement;

          (ix)   during the Funding Period, the remaining balance in the
                 Prefunding Account; and

          (x)    for the Mandatory Partial Redemption Date, the Mandatory
                 Partial Redemption Amount, if any.

                                      -50-
<PAGE>   55

     SECTION 3.10. ANNUAL STATEMENT AS TO COMPLIANCE.

     (a) The Servicer shall deliver to the Issuer, the Trust Agent, the
Indenture Trustee and the Insurer, on or before March 31, 2002 and on or before
March 31 of each fiscal year thereafter, an Officers' Certificate of the
Servicer stating that (i) a review of the activities of the Servicer during the
preceding fiscal year (since the Closing Date in the case of the first of such
Officers' Certificates required to be delivered) and of its performance under
this Agreement has been made under such officers' supervision and (ii) to the
best of such officers' knowledge, based on such review, the Servicer has
fulfilled all its obligations under this Agreement throughout such year and that
no default under this Agreement has occurred and is continuing, or, if there has
been a default in the fulfillment of any such obligation, specifying each such
default known to such officer and the nature and status thereof.

     (b) The Servicer shall deliver to the Issuer, the Trust Agent, the
Indenture Trustee, the Insurer and each Rating Agency promptly after having
obtained knowledge thereof, but in no event later than five Business Days
thereafter, an Officer's Certificate specifying any event which with the giving
of notice or lapse of time, or both, would become a Servicer Default under
Section 7.01.

     SECTION 3.11. ANNUAL INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT'S REPORT.

     On or before March 31, 2002 and on or before March 31 of each fiscal year
thereafter, the Servicer at its expense shall cause a firm of nationally
recognized independent certified public accountants (who may also render other
services to the Servicer) to furnish a report to the Issuer, the Trust Agent,
the Indenture Trustee and the Insurer to the effect that (i) they have audited
the balance sheet of the Servicer as of the last day of said fiscal year and the
related statements of operations, retained earnings and cash flows for such
fiscal year and have issued an opinion thereon, specifying the date thereof,
(ii) they have also reviewed the reports delivered by the Servicer pursuant to
Section 3.09(b) and certain other documents and the records relating to the
servicing of the Contracts and the distributions on the Notes under this
Agreement, (iii) their audit and review as described under clauses (i) and (ii)
above was made in accordance with generally accepted auditing standards and
accordingly included such tests of the accounting records and such other
auditing procedures as they considered necessary in the circumstances, and (iv)
their audits and reviews described under clauses (i) and (ii) above disclosed no
exceptions which, in their opinion, were material, relating to the servicing of
such Contracts in accordance with this Agreement and the making of distributions
on the Notes in accordance with this Agreement, or, if any such exceptions were
disclosed thereby, setting forth those exceptions which, in their opinion, were
material.

     SECTION 3.12. ACCESS TO CERTAIN DOCUMENTATION AND INFORMATION REGARDING
CONTRACTS.

     If the Servicer is acting as Custodian, the Servicer shall provide to the
Noteholders, the Issuer, the Owner Trustee, the Trust Agent, the Indenture
Trustee and the Insurer reasonable access to the Contract Files and Contract
Documents. Access shall be afforded without charge, but only upon reasonable
request and during normal business hours at designated offices of the Servicer.
Nothing in this Section shall affect the obligation of the Servicer to observe
any applicable law prohibiting disclosure of information regarding the Obligors,
and the failure of the Servicer to provide access to information as a result of
such obligation shall not constitute a breach of this Section.

                                      -51-
<PAGE>   56

     SECTION 3.13. FIDELITY BOND.

     The Servicer shall maintain a fidelity bond in such form and amount as is
customary for banks acting as custodian of funds and documents in respect of
mortgage loans or consumer contracts on behalf of institutional investors.

     SECTION 3.14. INDEMNIFICATION; THIRD PARTY CLAIMS.

     Subject to Section 7.02, the Servicer agrees to indemnify and hold the
Issuer, the Owner Trustee, the Trust Agent, the Indenture Trustee, the Insurer,
the Custodian and the Noteholders harmless against any and all claims, losses,
penalties, fines, forfeitures, reasonable legal fees and related costs,
judgments, and any reasonable other costs, fees and expenses that the Issuer,
the Owner Trustee, the Trust Agent, the Indenture Trustee, the Insurer, the
Custodian or Noteholders may sustain because of the failure of the Servicer to
perform its duties and service the Contracts in compliance with the terms of
this Agreement. The Servicer shall (i) immediately notify the Issuer and the
Indenture Trustee in writing if a claim is made by a third party with respect to
the Contracts, (ii) assume, with the consent of the Issuer, the Indenture
Trustee and the Insurer, the defense of any such claim, (iii) pay all expenses
in connection therewith, including counsel fees, and (iv) promptly pay,
discharge and satisfy any judgment or decree which may be entered with respect
to such claim against the Servicer, the Issuer, the Owner Trustee, the Trust
Agent, the Indenture Trustee, the Insurer, the Custodian or the Noteholders.

     SECTION 3.15. REPORTS TO NOTEHOLDERS AND THE RATING AGENCIES.

     (a) The Indenture Trustee at its own expense shall provide to each
Noteholder a copy of each Distribution Date Statement described in Section
3.09(a) concurrently with the delivery of the statement described in Section
4.05 below.

     (b) The Indenture Trustee shall provide to any Noteholder who so requests
in writing (addressed to the Corporate Trust Office of the Indenture Trustee) a
copy of the annual audit statement described in Section 3.10, or the annual
audit report described in Section 3.11. The Indenture Trustee may require the
Noteholder to pay a reasonable sum to cover the cost of the Indenture Trustee's
complying with such request.

     (c) The Indenture Trustee shall forward to the Rating Agencies and the
Insurer the statement to Noteholders described in Section 4.05 and any other
reports it may receive pursuant to this Agreement to (i) Standard & Poor's
Ratings Services, Asset-Backed Surveillance Group, 55 Water Street, New York,
New York 10041, (ii) Moody's Investors Service, Inc., ABS Monitoring Dept., 99
Church Street, 4th Floor, New York, New York 10007, and (iii) the address of the
Insurer at the address set forth in the Insurance Agreement.

     SECTION 3.16. ACCESS TO LIST OF NOTEHOLDERS' NAMES AND ADDRESSES.

     The Indenture Trustee shall furnish or cause to be furnished to the
Servicer, the Insurer and the Seller, within 15 days after receipt by the
Indenture Trustee of a written request therefor from the Servicer, the Insurer
or the Seller, a list, in such form as the Servicer, the Insurer or the Seller
may reasonably require, of the names and addresses of the Noteholders as of the
most recent Record Date. If three or more Noteholders, or one or more
Noteholders evidencing not less than 25% of the

                                      -52-
<PAGE>   57

aggregate outstanding principal balance of the Notes (hereinafter referred to as
"Applicants"), apply in writing to the Indenture Trustee, and such application
states that the Applicants desire to communicate with other Noteholders with
respect to their rights hereunder or under the Notes and such application is
accompanied by a copy of the communication that such Applicants propose to
transmit, then the Indenture Trustee shall, within five Business Days after the
receipt of such application, afford such Applicants access, during normal
business hours, to the current list of Noteholders. Each Noteholder, by
receiving and holding a Note, agrees with the Servicer, the Seller and the
Indenture Trustee that none of the Servicer, the Seller or the Indenture Trustee
shall be held accountable by reason of the disclosure of any such information as
to its name and address hereunder, regardless of the source from which such
information was derived.

                                   ARTICLE IV

            DISTRIBUTIONS; SPREAD ACCOUNT; STATEMENTS TO NOTEHOLDERS

     SECTION 4.01. ESTABLISHMENT OF TRUST ACCOUNTS.

     (a) Prior to the Closing Date, the Servicer shall open, at a depository
institution (which may be the same depository institution which is acting in the
capacity as Indenture Trustee), the following accounts:

          (i)    an account denominated "Collection Account - OT 2001-B, The
                 Chase Manhattan Bank, Indenture Trustee" (the "COLLECTION
                 ACCOUNT");

          (ii)   an account denominated "Payahead Account - OT 2001-B, The Chase
                 Manhattan Bank, as agent" (the "PAYAHEAD ACCOUNT");

          (iii)  an account denominated "Spread Account - OT 2001-B, The Chase
                 Manhattan Bank, Indenture Trustee" (the "SPREAD ACCOUNT");

          (iv)   an account denominated "Note Distribution Account - OT 2001-B,
                 The Chase Manhattan Bank, Indenture Trustee" (the "NOTE
                 DISTRIBUTION ACCOUNT");

          (v)    an account denominated "Prefunding Account - OT 2001-B, The
                 Chase Manhattan Bank, Indenture Trustee" (the "PREFUNDING
                 ACCOUNT"); and

          (vi)   an account denominated "Capitalized Interest Account - OT
                 2001-B, The Chase Manhattan Bank, Indenture Trustee" (the
                 "CAPITALIZED INTEREST ACCOUNT").

     In addition, the Indenture Trustee shall establish a trust account to be
maintained in the Corporate Trust Office of the Indenture Trustee denominated
"Payment Account - OT 2001-B, The Chase Manhattan Bank, Indenture Trustee" (the
"PAYMENT ACCOUNT" and, together with the accounts described in clauses (i)
through (vi) above, the "TRUST ACCOUNTS"). The Trust Accounts shall be

                                      -53-
<PAGE>   58

Eligible Accounts (subject to the requirement that the Payment Account must be
maintained as provided in the immediately preceding sentence) and relate solely
to the Notes and to the Contracts and, if applicable, the related Eligible
Investments. The location and account numbers of the Trust Accounts as of the
Closing Date are set forth on Schedule II. The Servicer shall give the Issuer,
the Owner Trustee, the Trust Agent, the Indenture Trustee and the Insurer at
least five Business Days' written notice of any change in the location of any
Trust Account and any related account identification information. All amounts,
financial assets and investment property held in, deposited in or credited to,
from time to time, the Trust Accounts (other than the Payahead Account and
investment income credited to the Collection Account and the Capitalized
Interest Account) shall be part of the Trust Property and all amounts, financial
assets and investment property held in, deposited in or credited to, from time
to time, the Collection Account, the Spread Account, the Prefunding Account and
the Capitalized Interest Account shall be invested by the Indenture Trustee in
Eligible Investments pursuant to Section 4.01(c).

     (b) If as of the last day of a Collection Period a payment in an amount
less than the scheduled payment of Monthly P&I has been made for a Precomputed
Contract with respect to which amounts have been deposited in or credited to the
Payahead Account in a preceding Collection Period in accordance with Sections
3.01 and 4.02(a), the Servicer shall withdraw from the Payahead Account and
deposit into the Collection Account by the fifth Business Day preceding the
Distribution Date immediately succeeding such Collection Period the amount equal
to the difference between such scheduled payment of Monthly P&I and such actual
payment, to the extent available from amounts deposited in or credited to the
Payahead Account with respect to such Contract. Amounts on deposit in the
Payahead Account shall be invested by the depository institution maintaining the
Payahead Account upon the written direction of the Servicer in Eligible
Investments which mature not later than the fifth Business Day prior to the
Distribution Date to which such amounts relate, and any earnings on such
Eligible Investments shall be payable to the Servicer monthly. The Payahead
Account and all amounts on deposit therein or credited thereto shall not be
considered part of the Trust Property.

     (c) All funds in the Collection Account, the Spread Account, the Prefunding
Account and the Capitalized Interest Account shall be invested by the Indenture
Trustee (if the Indenture Trustee maintains the applicable account), or on
behalf of the Indenture Trustee by the depository institution maintaining such
account, in Eligible Investments only upon the written direction from the
Servicer or the Insurer, as described below. Subject to the limitations set
forth herein, the Servicer may direct the depository institution maintaining the
Collection Account, the Spread Account, the Prefunding Account and the
Capitalized Interest Account in writing (with a copy of such direction to the
Indenture Trustee, if the Indenture Trustee is not the applicable depository
institution) to invest funds in the Collection Account, the Spread Account, the
Prefunding Account and the Capitalized Interest Account in Eligible Investments;
provided that (i) in the absence of such directions from the Servicer, the
Insurer may so direct, and (ii) at any time during the continuance of a Servicer
Default, only the Insurer, or for so long as an Insurer Default shall have
occurred and be continuing, only the Issuer, may give such investment
directions. All such investments shall be in the name of the Indenture Trustee
for the benefit of the Noteholders. All income or other gain from investment of
monies deposited in or credited to the Collection Account shall be paid by the
depository institution maintaining the Collection Account to the Servicer
monthly. All income or other gain from investment of monies deposited in or
credited to the Spread Account, the Prefunding Account and the Capitalized
Interest Account shall be deposited in or credited to such account immediately
upon receipt, and any loss resulting from such investment shall be charged to
such account. The

                                      -54-
<PAGE>   59

maximum permissible maturities of any investments of funds in the Collection
Account, the Spread Account and the Capitalized Interest Account on any date
shall not be later than the Servicer Report Date immediately preceding the
Distribution Date next succeeding the date of such investment; provided,
however, that if the Indenture Trustee is maintaining the applicable account,
such funds may be invested by the Indenture Trustee in Eligible Investments of
the entity that is serving as Indenture Trustee (or an entity which meets the
criteria in clauses (i)(b) or (i)(c) of the definition of Eligible Account) that
mature on the Business Day prior to such Distribution Date. The maximum
permissible maturity of any investments of funds in the Prefunding Account on
any date shall not be later than the next Business Day. No investment in
Eligible Investments may be sold prior to its maturity. The funds on deposit in
the Payment Account and the Note Distribution Account shall remain uninvested.

     (d) In the absence of written direction as provided above, all funds held
in the Spread Account, the Collection Account, the Prefunding Account and the
Capitalized Interest Account shall remain uninvested. In addition, if the
applicable depository institution receives what it perceives to be conflicting
directions regarding the investment of funds in the Collection Account, the
Spread Account, the Prefunding Account or the Capitalized Interest Account, the
directions of the Insurer shall control unless an Insurer Default shall have
occurred and be continuing, in which case the directions of the Servicer shall
control unless a Servicer Default shall have occurred and be continuing, in
which case the directions of the Issuer shall control. In addition, the
Indenture Trustee shall not in any way be held liable by reason of any
insufficiency in any of the foregoing Trust Accounts held by or on behalf of the
Indenture Trustee resulting from any investment loss on any Eligible
Investments.

     SECTION 4.02. COLLECTIONS; TRANSFERS TO PAYAHEAD ACCOUNT; REALIZATION UPON
POLICY; NET DEPOSITS; TRANSFERS TO PAYMENT ACCOUNT.

     (a) Subject to the last sentence of this Section 4.02(a), the Servicer
shall remit or credit all payments on a daily basis, within two Business Days of
receipt, by or on behalf of Obligors on the Contracts, and all Net Liquidation
Proceeds and Net Insurance Proceeds and other monies as required to the
Collection Account. Prior to the Servicer Report Date, amounts with respect to
Precomputed Contracts which are otherwise required to be deposited in or
credited to the Collection Account pursuant to the immediately preceding
sentence shall instead be deposited in or credited to the Payahead Account to
the extent that such amounts are installments of Monthly P&I which are due in a
Collection Period relating to a Distribution Date subsequent to the Distribution
Date immediately succeeding the date of receipt. The Servicer or the Seller, as
the case may be, each shall remit or credit to the Collection Account each
Purchase Amount to be remitted by it with respect to Purchased Contracts on the
Business Day preceding the Servicer Report Date next succeeding (i) the end of
the Collection Period in which the applicable Contract is repurchased by the
Seller pursuant to Section 2.03, in the case of the Seller or (ii) the last day
of the related cure period specified in Section 3.07, in the case of the
Servicer.

     (b) On the Servicer Report Date, the Servicer shall determine the Policy
Claim Amount, if any, which exists with respect to the related Distribution Date
and submit a Distribution Date Statement pursuant to Section 3.09.

                                      -55-
<PAGE>   60

     (c) The Indenture Trustee shall, no later than 12:00 p.m., New York City
time, on the third Business Day prior to each Distribution Date (based solely on
the information contained in the Distribution Date Statement, delivered on the
applicable Servicer Report Date), make a claim under the Policy for the Policy
Claim Amount, if any, for such Distribution Date by delivering to the Fiscal
Agent, with a copy to the Insurer, the Trust Agent and the Servicer, by hand
delivery, telex or facsimile transmission, a written notice (a "DEFICIENCY
NOTICE") specifying the Policy Claim Amount, if any, for such Distribution Date,
separately identifying the amount of the Policy Claim Amount payable in respect
of each Class of Notes. Each Deficiency Notice shall direct the Insurer to remit
such Policy Claim Amount to the Indenture Trustee for deposit in the Payment
Account. In making any such claim, the Indenture Trustee shall comply with all
the terms and conditions of the Policy. Upon receipt of the Policy Claim Amount,
the Indenture Trustee shall apply the portion thereof, if any, representing the
Deficiency Amount with respect to a Distribution Date as provided in Section
4.03. Any amounts received by the Indenture Trustee under the Policy that
represent Preference Amounts shall be paid, in accordance with the Policy, to
the applicable Noteholder(s).

     (d) So long as Onyx is the Servicer, the Servicer may make deposits in or
credits to the Collection Account net of amounts to be paid to the Servicer
under this Agreement. Notwithstanding the foregoing, the Servicer shall maintain
the records and accounts for such deposits and credits on a gross basis.

     (e) On the Business Day immediately preceding each Distribution Date, based
solely on the Distribution Date Statement, the Servicer shall cause funds equal
to the amount of Net Collections available with respect to such Distribution
Date on deposit in the Collection Account to be withdrawn from the Collection
Account and deposited into the Payment Account to be distributed pursuant to
Section 4.03.

     SECTION 4.03. DISTRIBUTIONS.

     On each Distribution Date, based solely on the Distribution Date Statement,
the Indenture Trustee will apply the Net Collections available from the Payment
Account, along with any amounts deposited into the Payment Account from the
Prefunding Account and the Capitalized Interest Account, with respect to such
Distribution Date to make the following deposits and distributions in the
following amounts and order of priority:

          (i)    to the Servicer, the Servicing Fee, including any accrued and
                 unpaid Servicing Fees with respect to one or more prior
                 Collection Periods;

          (ii)   to the Indenture Trustee, the Owner Trustee and the Trust
                 Agent, any accrued and unpaid fees of the Indenture Trustee,
                 the Owner Trustee and the Trust Agent, in each case to the
                 extent such fees have not been previously paid by the Servicer
                 or the Administrator;

          (iii)  to the Note Distribution Account, the Note Interest
                 Distributable Amount to be paid to the Holders of the Class A
                 Notes at their respective Interest Rates;

          (iv)   to the Note Distribution Account, if such Distribution Date is
                 a Note Final Scheduled Distribution Date for any Class of
                 Notes, the Note Principal Distributable Amount to the extent of
                 the remaining principal amount of such Class of Notes, to be
                 paid to the Holders of such Class of Notes;

                                      -56-
<PAGE>   61

          (v)    if such Distribution Date is the Mandatory Partial Redemption
                 Date, to the Note Distribution Account, the Mandatory Partial
                 Redemption Amount, to be distributed to the Holders of the
                 Class A-1 Notes if such amount is less than or equal to
                 $50,000, and to be distributed to the Holders of all Notes, pro
                 rata based on the then outstanding principal balance of the
                 Notes, if such amount exceeds $50,000;

          (vi)   to the Note Distribution Account, solely from Net Collections
                 (plus amounts transferred from the Prefunding Account
                 representing earnings from investments therein and amounts
                 transferred from the Capitalized Interest Account, if any)
                 remaining after giving effect to the distributions described in
                 clauses (i) through (v) above, the remaining Note Principal
                 Distributable Amount (after giving effect to the payment, if
                 any, described in clause (iv) above), to be paid first to the
                 Holders of the Class A-1 Notes until the principal amount of
                 the Class A-1 Notes has been reduced to zero, second, to the
                 Holders of the Class A-2 Notes until the principal amount of
                 the Class A-2 Notes has been reduced to zero, third, to the
                 Holders of the Class A-3 Notes until the principal amount of
                 the Class A-3 Notes has been reduced to zero, and fourth, to
                 the Holders of the Class A-4 Notes until the principal amount
                 of the Class A-4 Notes has been reduced to zero;

          (vii)  to the Insurer, after giving effect to the distributions
                 described in clauses (i) through (vi) above, (A) any amounts,
                 including the Premium, owing to the Insurer under the Insurance
                 Agreement and (B) any unreimbursed Insurer Defense Costs;

          (viii) to the Spread Account, after giving effect to the distributions
                 described in clauses (i) through (vii) above, the amount, if
                 any, required to increase the amount therein to the Spread
                 Account Maximum for such Distribution Date; and

          (ix)   any amounts remaining after distribution of the Accelerated
                 Principal Distributable Amount as part of the Note Principal
                 Distributable Amount, if applicable, shall be deposited into
                 the Spread Account.

Any amounts deposited in the Payment Account pursuant to 4.04(b) with respect to
a Distribution Date and any amounts received by the Indenture Trustee as a
result of a claim under the Policy that represent the Deficiency Amount with
respect to such Distribution Date shall be applied by the Indenture Trustee
solely to make the deposits and distributions referred to in clauses (i) through
(iv) above, in that order of priority, but only to the extent that the Net
Collections (plus amounts transferred to the Payment Account from the Prefunding
Account, representing earnings from investments therein, and amounts transferred
to the Payment Account from the Capitalized Interest Account, if any) with
respect to such Distribution Date, after application as provided above, were

                                      -57-
<PAGE>   62

insufficient to make such deposit or distribution. In addition, if the Insurer
pays any amounts to the Indenture Trustee with respect to a Distribution Date in
connection with the Insurer's election to pay, as provided in the Policy, all or
a portion of any shortfalls in the amount of Net Collections (plus amounts
transferred to the Payment Account from the Prefunding Account, representing
earnings from investments therein, and amounts transferred to the Payment
Account from the Capitalized Interest Account, if any) with respect to such
Distribution Date available to distribute the amounts referred to in clause (vi)
above, the Indenture Trustee shall distribute the amounts so received from the
Insurer as provided in such clause.

     SECTION 4.04. SPREAD ACCOUNT.

     (a) The Spread Account will be held for the benefit of the Noteholders and
the Insurer. On the Closing Date, the Seller shall deposit into the Spread
Account an amount equal to the Initial Cash Deposit from the proceeds of the
sale of the Notes.

     (b) On each Distribution Date, based solely on the Distribution Date
Statement, the Indenture Trustee shall withdraw funds from the Spread Account,
to the extent funds are on deposit therein, equal to the amount by which the sum
of the amounts set forth in Section 4.03, clauses (i) though (iv) with respect
to such Distribution Date exceeds the amount of Net Collections (plus amounts
transferred to the Payment Account from the Prefunding Account, representing
earnings from investments therein, and amounts transferred to the Payment
Account from the Capitalized Interest Account, if any) available with respect to
such Distribution Date. The Indenture Trustee shall deposit any such funds
withdrawn from the Spread Account into the Payment Account to be distributed
pursuant to Section 4.03. Funds shall also be withdrawn from the Spread Account
by the Indenture Trustee, as directed by the Insurer to reimburse the Insurer
for draws with respect to any Preference Amount. If the amount of cash on
deposit in the Spread Account on any Distribution Date (after giving effect to
all deposits thereto or withdrawals therefrom on such Distribution Date other
than withdrawals relating to distributions to be made pursuant to this sentence)
exceeds the maximum amount of the cash component of the Spread Account, as
specified in the definition of "Spread Account Maximum" set forth in the
Insurance Agreement, the Indenture Trustee shall, based solely on the
Distribution Date Statement, distribute any excess first, to the Insurer, to the
extent of any amounts owing to the Insurer pursuant to the Insurance Agreement
and any unreimbursed Insurer Defense Costs, and second, to the Note Distribution
Account for distribution to holders of the Residual Interests. Upon any such
distributions to the Insurer or the holders of the Residual Interests, the
Noteholders will have no further rights in, or claims to, such amounts.

     (c) Amounts held in the Spread Account shall be invested in the manner
specified in Section 4.01(c), and such investments shall be made in accordance
with written instructions from the Servicer; provided that, if the Indenture
Trustee does not receive any such written instructions prior to any date on
which an investment decision must be made, the funds held in the Spread Account
will remain uninvested. All such investments shall be made in the name of the
Indenture Trustee or its nominee and such investments shall not be sold or
disposed of prior to their maturity.

     (d) Ninety-one (91) days following the termination of the Trust pursuant to
Section 9.01 of the Trust Agreement, any amounts on deposit in the Spread
Account, after payments of amounts due to the Noteholders or the Insurer
pursuant to the Insurance Agreement and any unreimbursed Insurer Defense Costs,
shall be paid to the holders of the Residual Interests; provided, however, that
if an insolvency event of the type described in Section 7.01(d) or (e) with
respect to any of the Seller,

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<PAGE>   63

the Servicer, the Indenture Trustee or the Noteholders (collectively, the
"POTENTIAL PREFERENCE PARTIES") shall have occurred during the period ending
ninety-one (91) days after payment in full to the Noteholders of all amounts
payable with respect to the Notes and the payment in full of the Repayment
Amount then the funds on deposit in the Spread Account shall be retained until
the date all applicable statute of limitation periods with respect to all
applicable preference actions and periods have expired and during which time no
preference action or similar proceeding at law or in equity is commenced, at
which time, the Insurer shall direct the Indenture Trustee in writing to release
all amounts in the Spread Account to the holders of the Residual Interests, pro
rata in proportion to percentage portion of the Residual Interest (the
"PERCENTAGE INTEREST") of each such holder of the Residual Interests. In the
event that any preference action referred to above is commenced during any
applicable statute of limitations period, funds deposited in the Spread Account
shall be retained until the date on which there is a final determination by a
court of competent jurisdiction as to whether any payment or payments made
pursuant to this Agreement, the Indenture, the Indemnification Agreement or the
Insurance Agreement is recoverable from any of the Insurer or the Noteholders.
If it is so determined that a payment is so recoverable, funds deposited in the
Spread Account shall be applied by the Indenture Trustee at the written
direction of the Insurer first to pay any and all such claims with respect to
such preference actions as the Noteholders and the Insurer may be required to
pay and then to the holders of the Residual Interests, pro rata in proportion to
their Percentage Interests. If it is determined that any such payment is not
recoverable, the Insurer shall direct the Indenture Trustee in writing to
release all amounts on deposit in the Spread Account to the holders of the
Residual Interests, pro rata in proportion to their Percentage Interests, upon
receipt by the Insurer of both a final order determining that such payments are
not recoverable and an opinion of nationally recognized bankruptcy counsel to
the effect that such appeal is final and not subject to appeal. For purposes of
compliance with this Section 4.04(d), the Indenture Trustee shall be entitled to
rely on written instructions from the Insurer.

     (e) In the event any of the holders of the Residual Interests seek to have
the amounts remaining on deposit in the Spread Account released to holders of
the Residual Interests prior to the expiration of the ninety-one (91) day period
specified in Section 4.04(d) above, then, if (i) amounts payable with respect to
the Notes have been fully paid to the Noteholders, (ii) the Repayment Amount and
all other amounts owing to the Insurer pursuant to the Insurance Agreement and
any unreimbursed Insurer Defense Costs have been paid in full, (iii) no case or
proceeding described in Sections 7.01(d) or (e) has occurred with respect to the
Potential Preference Parties, and (iv) either (A) the long term unsecured debt
of the Seller and the Servicer is rated "BBB-" or better by Standard & Poor's
and "Baa3" or better by Moody's, (B) the Insurer shall have received a favorable
opinion or opinions, satisfactory in form and substance to the Insurer, from
counsel to Onyx, the Seller and the Servicer, to the effect that in the event a
case or proceeding described in Sections 7.01(d) or (e) were to occur with
respect to the Potential Preference Parties, no payment pursuant to this
Agreement or the Insurance Agreement would be recoverable from either the
Insurer or the Noteholders, and such other matters as the Insurer may reasonably
request, or (C) the Insurer, in its sole discretion, elects to have the
remaining amounts on deposit in the Spread Account paid to the holders of the
Residual Interests, then, in any such event, all remaining amounts on deposit in
the Spread Account shall be paid to the holders of the Residual Interests, pro
rata in proportion to their Percentage Interests.

                                      -59-
<PAGE>   64

     SECTION 4.05. STATEMENTS TO NOTEHOLDERS.

     (a) On each Distribution Date, the Indenture Trustee shall include with
each distribution to each Noteholder of record as of the related Record Date, a
statement, prepared by the Servicer, based on the information in the
Distribution Date Statement furnished pursuant to Section 3.09, setting forth
for such Distribution Date the following information as of the related Record
Date or such Distribution Date, as the case may be:

          (i)    the amount of such distribution allocable to principal (stated
                 separately for each Class of Notes), separately identifying the
                 aggregate amount included therein of any (i) Full Prepayments
                 of principal on Precomputed Contracts and (ii) Full Prepayments
                 and partial prepayments of principal on Simple Interest
                 Contracts;

          (ii)   the amount of such distribution allocable to interest (stated
                 separately for each Class of Notes);

          (iii)  the Note Distributable Amount for such Distribution Date;

          (iv)   the Premium payable to the Insurer;

          (v)    the amount to be on deposit in the Spread Account on such
                 Distribution Date, before and after giving effect to deposits
                 thereto and withdrawals therefrom to be made in respect of such
                 Distribution Date;

          (vi)   the amount of the withdrawal, if any, required to be made from
                 the Spread Account by the Indenture Trustee, specifying as to
                 whether such amount is to be (A) deposited into the Payment
                 Account, (B) paid to the Insurer or (C) deposited into the Note
                 Distribution Account for distribution to the holders of the
                 Residual Interests pursuant to Section 4.04;

          (vii)  the aggregate Servicing Fee with respect to the Contracts for
                 the related Collection Period;

          (viii) the amount of fees paid to the Owner Trustee, the Trust Agent
                 and the Indenture Trustee, with respect to the related
                 Collection Period;

          (ix)   the amount of any Note Interest Carryover Shortfall and Note
                 Principal Carryover Shortfall on such Distribution Date and the
                 change in such amounts from those with respect to the
                 immediately preceding Distribution Date;

          (x)    the number of, and aggregate amount of, monthly principal and
                 interest payments due on the Contracts which are delinquent as
                 of the end of the related Collection Period presented on a
                 30-day, 60-day and 90-day basis;

                                      -60-
<PAGE>   65

          (xi)   the Net Collections and the Policy Claim Amount, if any, for
                 such Distribution Date;

          (xii)  the aggregate amount of Liquidation Proceeds received for
                 Defaulted Contracts;

          (xiii) the net credit losses and Cram Down Losses for the Collection
                 Period;

          (xiv)  the number and net outstanding balance of Contracts for which
                 the Financed Vehicle has been repossessed;

          (xv)   the Pool Balance and the Note Pool Factor for each Class of
                 Notes as of such Distribution Date after giving effect to the
                 distribution made on such Distribution Date;

          (xvi)  on each Distribution Date occurring during and immediately
                 following the end of the Funding Period, the amount on deposit
                 in each of the Prefunding Account and the Capitalized Interest
                 Account on such Distribution Date, before and after giving
                 effect to withdrawals therefrom to be made in respect of such
                 Distribution Date;

          (xvii) on each Distribution Date occurring during and immediately
                 following the end of the Funding Period, the amounts of
                 investment earnings and other amounts transferred from the
                 Prefunding Account and the amounts transferred from the
                 Capitalized Interest Account to the Payment Account; and

         (xviii) on the Distribution Date immediately following the end of the
                 Funding Period, the Mandatory Partial Redemption Amount.

Each amount set forth pursuant to subclauses (i) or (ii) above shall be
expressed as a dollar amount per $1,000.00 of original principal amount of a
Note.

     (b) Within a reasonable period of time after the end of each calendar year,
but not later than the latest date permitted by law, the Servicer shall prepare
and furnish to the Issuer, the Indenture Trustee and each Paying Agent, and the
Paying Agent for the Notes and the Paying Agent for the Residual Interest
Instruments shall furnish to each Person who on any Record Date during such
calendar year shall have been a Holder of a Note or a Residual Interest
Instrument, respectively, a statement or statements containing the sum of the
amounts set forth in clauses (i) and (ii) above for such calendar year and such
other information as is reasonably necessary for the preparation of such
Person's federal income tax return in respect of the Notes or Residual Interest
Instruments or, in the event such Person shall have been a Holder of a Note or a
Residual Interest Instrument during a portion of such calendar year, for the
applicable portion of such year, for the purposes of such Noteholder's or
Residual Interestholder's preparation of federal income tax returns.

                                      -61-
<PAGE>   66

     SECTION 4.06. CAPITALIZED INTEREST ACCOUNT.

     (a) Pursuant to Section 4.01, the Servicer shall establish the Capitalized
Interest Account in the name of the Indenture Trustee for the benefit of the
Noteholders and the Insurer.

     (b) On the Closing Date, the Seller shall deposit the Initial Capitalized
Interest Amount into the Capitalized Interest Account.

     (c) On the Business Day immediately preceding each Distribution Date, based
solely on the Distribution Date Statement, the Indenture Trustee shall withdraw
or cause to be withdrawn funds equal to the Capitalized Interest Amount with
respect to such Distribution Date from amounts on deposit in the Capitalized
Interest Account and deposit or cause to be deposited such funds into the
Payment Account, to be distributed pursuant to Section 4.03.

     (d) On each Distribution Date during and immediately following the Funding
Period, based on the written instructions of the Servicer, the Indenture Trustee
shall release to the Seller from the Capitalized Interest Account an amount such
that the balance remaining in the Capitalized Interest Account after such
release and after any transfer of the Capitalized Interest Amount to the Payment
Account pursuant to Section 4.06(c) will equal the Maximum Capitalized Interest
Amount. On the Distribution Date following the Mandatory Partial Redemption
Date, the Indenture Trustee shall release to the Seller any amounts remaining on
deposit in the Capitalized Interest Account after giving effect to the required
distribution to Noteholders on such date.

     SECTION 4.07. PREFUNDING ACCOUNT.

     (a) Pursuant to Section 4.01, the Servicer shall establish the Prefunding
Account in the name of the Indenture Trustee for the benefit of the Noteholders
and the Insurer.

     (b) On the Closing Date, the Seller shall deposit into the Prefunding
Account an amount equal to the Prefunded Amount from the proceeds of the sale of
the Notes. Provided the Indenture Trustee has received the related Transfer
Certificate on the Business Day immediately preceding the Prefunding Transfer
Date, the Indenture Trustee shall withdraw from the Prefunding Account an amount
equal to the Outstanding Principal Balance of the Prefunded Contracts (as
indicated in the Transfer Certificate and determined as of the related
Prefunding Cut-Off Date) that have been delivered to the Custodian, on behalf of
the Indenture Trustee, and wire such amount by federal funds to the Seller's
account listed in the Transfer Certificate relating to such Prefunding Transfer
Date by 1:00 p.m. California time on such Prefunding Transfer Date.

     (c) If any amount remains on deposit in the Prefunding Account on the last
day of the Funding Period, such amount shall be invested at the written
instruction of the Servicer in a single Eligible Investment which matures on the
Business Day preceding the Mandatory Partial Redemption Date; provided, that in
the event no such Eligible Investment is available, such amount shall not be
invested but shall be held in the Prefunding Account uninvested.

     (d) On the Business Day preceding the Mandatory Partial Redemption Date,
the Servicer shall instruct the Indenture Trustee in writing to withdraw the
Mandatory Partial Redemption Amount from the Prefunding Account and deposit such
amount in the Payment Account on such Business Day.

     (e) On the Business Day immediately preceding each Distribution Date
following a Collection Period during which amounts are on deposit in the
Prefunding Account, the Indenture Trustee shall withdraw the earnings on all
investments in the Prefunding Account and deposit such amount in the Payment
Account on such Business Day.

                                      -62-
<PAGE>   67

     SECTION 4.08. REQUIREMENTS RELATING TO PREFUNDING ACCOUNT.

     The transfer of Prefunded Contracts to the Trust shall be subject to each
of, and Prefunded Contracts shall not be transferred to the Trust to the extent
such transfer would result in the violation of any of, the following
restrictions and limitations, as well as the conditions set forth in Section
2.01(c):

          (a) The period during which Prefunded Contracts may be transferred to
the Trust (the "FUNDING PERIOD") shall begin on the Closing Date and end no
later than the earliest to occur of: (i) the date on which the balance in the
Prefunding Account is less than $2,500.00; (ii) the date on which a Servicer
Default or an Indenture Event of Default occurs; or (iii) the close of business
on August 13, 2001.

          (b) The aggregate principal amount of the Prefunded Contracts shall
not exceed 25% of the principal balance of the Notes offered as of the Closing
Date.

          (c) Each of the Prefunded Contracts shall meet the same terms and
conditions for eligibility as those of the Funded Contracts; provided, that the
terms and conditions for determining the eligibility of a Prefunded Contract may
be changed if such changes receive prior approval by the Insurer, with notice
given to each Rating Agency.

          (d) The transfer of Prefunded Contracts shall not result in any Note
receiving a lower credit rating from a Rating Agency upon termination of the
Funding Period than the rating obtained as of the time of the initial issuance
of the Notes by the Trust without regard to the Policy.

                                    ARTICLE V

                                   THE SELLER

     SECTION 5.01. LIABILITY OF SELLER; INDEMNITIES.

     The Seller shall be liable in accordance herewith only to the extent of the
obligations specifically undertaken by the Seller under this Agreement.

     SECTION 5.02. MERGER OR CONSOLIDATION OF, OR ASSUMPTION OF THE OBLIGATIONS
OF, SELLER; CERTAIN LIMITATIONS.

     The Seller shall not consolidate with or merge into any other corporation
or convey, transfer or lease substantially all of its assets as an entirety to
any Person unless the corporation formed by such consolidation or into which the
Seller has merged or the Person which acquires by conveyance, transfer or lease
substantially all the assets of the Seller as an entirety, can lawfully perform
the

                                      -63-
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obligations of the Seller hereunder and executes and delivers to the Issuer, the
Trust Agent, the Indenture Trustee and the Insurer an agreement in form and
substance reasonably satisfactory to the Issuer, the Trust Agent, the Indenture
Trustee and the Insurer, which contains an assumption by such successor entity
of the due and punctual performance and observance of each covenant and
condition to be performed or observed by the Seller under this Agreement.

     SECTION 5.03. LIMITATION ON LIABILITY OF SELLER AND OTHERS.

     The Seller and any director or officer or employee or agent of the Seller
may rely in good faith on any document of any kind, prima facie properly
executed and submitted by any Person respecting any matters arising hereunder.
The Seller shall not be under any obligation to appear in, prosecute or defend
any legal action that shall not be incidental to its obligations under this
Agreement, and that in its opinion may involve it in any expense or liability.

     SECTION 5.04. SELLER NOT TO RESIGN.

     Subject to the provisions of Section 5.02, the Seller shall not resign from
the obligations and duties hereby imposed on it as Seller under this Agreement.

     SECTION 5.05. SELLER MAY OWN NOTES.

     The Seller and any Affiliate thereof may in its individual or any other
capacity become the owner or pledgee of Notes with the same rights as it would
have if it were not the Seller or an Affiliate thereof, except as expressly
provided herein or in any Basic Document. Notes so owned by or pledged to the
Seller or such Affiliate shall have an equal and proportionate benefit under the
provisions of this Agreement, without preference, priority or distinction as
among all Classes of the Notes.

                                   ARTICLE VI

                                  THE SERVICER

     SECTION 6.01. LIABILITY OF SERVICER; INDEMNITIES.

     Subject to Section 7.02, the Servicer shall be liable in accordance
herewith only to the extent of the obligations specifically undertaken by the
Servicer under this Agreement. Such obligations shall include the following:

     (a) The Servicer shall defend, indemnify and hold harmless the Issuer, the
Owner Trustee, the Trust Agent, the Indenture Trustee, the Insurer, the
Custodian, their respective officers, directors, agents and employees, and the
Noteholders from and against any and all costs, expenses, losses, damages,
claims and liabilities, arising out of or resulting from the use, ownership or
operation by the Servicer or any Affiliate thereof of a Financed Vehicle.

     (b) The Servicer shall indemnify, defend and hold harmless the Issuer, the
Owner Trustee, the Trust Agent, the Indenture Trustee, the Insurer, the
Custodian (if the Custodian is not the Servicer) and their respective officers,
directors, agents and employees from and against any taxes that may at any time
be asserted against the Issuer, the Owner Trustee, the Trust Agent, the

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Indenture Trustee, the Insurer or the Custodian with respect to the transactions
contemplated herein and in the other Basic Documents, including, without
limitation, any sales, gross receipts, general corporation, tangible personal
property, privilege or license taxes (but, not including (i) in the case of the
Issuer, any taxes asserted with respect to, and as of the date of, the sale of
the Contracts to the Issuer or the issuance and original sale of the Notes, or
(ii) any taxes asserted with respect to ownership of the Contracts, or (iii) any
federal or other income taxes arising out of distributions on the Notes) and
costs and expenses in defending against the same.

     (c) The Servicer shall indemnify, defend and hold harmless the Issuer, the
Owner Trustee, the Trust Agent, the Indenture Trustee, the Insurer, the
Custodian (if the Custodian is not the Servicer), their respective officers,
directors, agents and employees and the Noteholders from and against any and all
costs, expenses, losses, claims, damages and liabilities to the extent that such
cost, expense, loss, claim, damage or liability arose out of, or was imposed
upon any such Person through, the negligence (other than errors in judgment),
willful misfeasance or bad faith of the Servicer or the Seller in the
performance of their respective duties under this Agreement.

     (d) The Servicer shall indemnify, defend and hold harmless the Issuer, the
Owner Trustee, the Trust Agent, the Indenture Trustee, the Insurer, the
Custodian (if the Custodian is not the Servicer) and their respective officers,
directors, agents and employees from and against any and all costs, expenses,
losses, claims, damages and liabilities arising out of or incurred in connection
with the acceptance or performance of the trusts and duties herein and, in the
case of the Owner Trustee and the Trust Agent, in the Trust Agreement and, in
the case of the Indenture Trustee, in the Indenture, except to the extent that
such cost, expense, loss, claim, damage or liability (i) shall be due to the
willful misfeasance, bad faith or negligence of the Owner Trustee, the Trust
Agent, the Indenture Trustee, the Insurer or the Custodian, as the case may be;
(ii) relates to any tax other than the taxes with respect to which either the
Servicer shall be required to indemnify the Issuer, the Owner Trustee, the Trust
Agent, the Indenture Trustee, the Insurer or the Custodian; or (iii) shall arise
from the Trust Agent's, the Owner Trustee's or the Indenture Trustee's breach of
any of their respective representations or warranties set forth herein, in the
Trust Agreement or in the Indenture.

     (e) In addition to the indemnification obligations set forth above, and
without duplication, the Servicer shall indemnify the Owner Trustee, the Trust
Agent, each co-trustee and their respective officers, directors, employees,
successors, assigns, agents and servants from and against any and all
liabilities, obligations, losses, damages, taxes, claims, actions and suits, and
any and all reasonable costs, expenses and disbursements (including reasonable
legal fees and expenses) of any kind and nature whatsoever in any way relating
to or arising out of the Trust Agreement, the other Basic Documents, the Trust
Estate (as defined in the Trust Agreement), the administration of the Trust
Estate or the action or inaction of the Owner Trustee, Trust Agent or any
co-trustee under the Trust Agreement, except to the extent that such
liabilities, obligations, losses, damages, taxes, claims, actions, suits, costs,
expenses and disbursements (i) shall be due to the willful misconduct or
negligence of the Owner Trustee, the Trust Agent, a co-trustee or such other
party seeking indemnification, as the case may be, or (ii) shall arise from the
inaccuracy of any representation or warranty contained in Section 7.03 of the
Trust Agreement expressly made by the Owner Trustee or the Trust Agent, as the
case may be. In the event of any claim, action or proceeding for which indemnity
will be sought pursuant to this Section 6.01(e), the choice of legal counsel by
the Owner Trustee or the Trust Agent, as applicable, shall be subject to the
approval of the Servicer, which approval shall not be unreasonably withheld.

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     (f) Indemnification under this Section shall include, without limitation,
reasonable fees and expenses of counsel and expenses of litigation. If the
Servicer shall have made any indemnity payments pursuant to this section and the
recipient thereafter collects any of such amounts from others, the recipient
Person shall promptly repay such amounts to the Servicer, without interest.

     (g) This Section 6.01 shall survive the resignation or removal of the Owner
Trustee, the Trust Agent, the Custodian and the Indenture Trustee and the
termination of this Agreement, the Trust Agreement and the Indenture.

     SECTION 6.02. CORPORATE EXISTENCE; STATUS AS SERVICER; MERGER.

     (a) The Servicer shall keep in full effect its existence, rights and
franchises as a corporation incorporated under the laws of the State of
Delaware, and will obtain and preserve its qualification to do business as a
foreign corporation in each jurisdiction in which such qualification is or shall
be necessary to protect the validity and enforceability of the Contract
Documents and this Agreement.

     (b) The Servicer shall not consolidate with or merge into any other
corporation or convey, transfer or lease all or substantially all of its assets
as an entirety to any Person or engage in any corporate transaction pursuant to
which the surviving or successor entity is not Onyx Acceptance Corporation,
unless (i) such entity is at least rated investment grade by the Rating
Agencies, (ii) the Insurer shall have consented thereto in writing and (iii)
such entity executes and delivers to the Issuer, the Indenture Trustee and the
Insurer an agreement in form and substance reasonably satisfactory to the
Issuer, the Indenture Trustee and the Insurer, which contains an assumption by
such successor entity of the due and punctual performance and observance of each
covenant and condition to be performed or observed by the Servicer under this
Agreement.

     SECTION 6.03. PERFORMANCE OF OBLIGATIONS.

     (a) The Servicer shall punctually perform and observe all of its
obligations and agreements contained in this Agreement.

     (b) The Servicer shall not take any action, or permit any action to be
taken by others, which would excuse any person from any of its covenants or
obligations under any of the Contract Documents or under any other instrument
included in the Trust Property, or which would result in the amendment,
hypothecation, subordination, termination or discharge of, or impair the
validity or effectiveness of, any of the Contract Documents or any such
instrument, except as expressly provided herein and therein.

     SECTION 6.04. SERVICER NOT TO RESIGN; ASSIGNMENT.

     (a) The Servicer shall not resign from the duties and obligations hereby
imposed on it except upon determination by its Board of Directors that by reason
of change in applicable legal requirements the continued performance by the
Servicer of its duties hereunder would cause it to be in violation of such legal
requirements in a manner which would result in a material adverse effect on the
Servicer or its financial condition, said determination to be evidenced by a
resolution of its Board of Directors to such effect accompanied by an Opinion of
Counsel, satisfactory to the Issuer, the Insurer and the Indenture Trustee, to
such effect. No such resignation shall become effective

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unless and until (i) the Indenture Trustee assumes all of the Servicer's
obligations under this Agreement or (ii) a new servicer acceptable to the
Issuer, the Indenture Trustee and the Insurer is willing to service the
Contracts and enters into a servicing agreement with the Issuer, the Indenture
Trustee and the Insurer in form and substance substantially similar to this
Agreement and satisfactory to the Issuer, the Indenture Trustee and the Insurer,
and each Rating Agency confirms that the selection of such new servicer will not
result in the qualification, reduction or withdrawal of its then- current rating
of each Class of Notes assigned by such Rating Agency. No such resignation by
the Servicer shall affect the obligation of the Servicer to repurchase Contracts
pursuant to Section 3.07.

     (b) Except as specifically permitted in this Agreement, the Servicer may
not assign this Agreement or any of its rights, powers, duties or obligations
hereunder; provided that (i) the Servicer may assign this Agreement in
connection with a consolidation, merger, conveyance, transfer or lease made in
compliance with Section 6.02(b).

     (c) Except as provided in Sections 6.04(a) and (b), the duties and
obligations of the Servicer under this Agreement shall continue until this
Agreement shall have been terminated as provided in Section 8.01 or the Trust
shall have been terminated as provided by the terms of the Trust Agreement, and
shall survive the exercise by the Issuer, the Indenture Trustee or the Insurer
of any right or remedy under this Agreement, or the enforcement by the Issuer,
the Indenture Trustee or any Noteholder, or the Insurer of any provision of the
Notes, the Insurance Agreement or this Agreement.

     (d) The resignation of the Servicer in accordance with this Section shall
not affect the rights of the Seller hereunder. If the Servicer resigns pursuant
to this Section, its appointment as custodian may be terminated pursuant to
Section 2.08.

     SECTION 6.05. LIMITATION ON LIABILITY OF SERVICER AND OTHERS.

     Neither the Servicer nor any of the directors, officers, employees or
agents of the Servicer shall be under any liability to the Issuer or the
Noteholders, except as provided under this Agreement, for any action taken or
for refraining from the taking of any action pursuant to this Agreement or for
errors in judgment; provided, however, that this provision shall not protect the
Servicer or any such person against any liability that would otherwise be
imposed by reason of willful misfeasance, bad faith or negligence (except errors
in judgment) in the performance of duties or by reason of reckless disregard of
obligations and duties under this Agreement. The Servicer and any director,
officer, employee or agent of the Servicer may rely in good faith on any
document of any kind prima facie properly executed and submitted by any person
respecting any matters arising under this Agreement.

     Except as provided in this Agreement, the Servicer shall not be under any
obligation to appear in, prosecute or defend any legal action that shall not be
incidental to its duties to service the Contracts in accordance with this
Agreement, and that in its opinion may involve it in any expense or liability;
provided, however, that the Servicer may undertake any reasonable action that it
may deem necessary or desirable in respect of this Agreement and the other Basic
Documents and the rights and duties of the parties to this Agreement and the
other Basic Documents and the interests of the Noteholders under this Agreement
and the other Basic Documents.

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                                   ARTICLE VII

                                     DEFAULT

     SECTION 7.01. EVENTS OF DEFAULT.

     If any one of the following events (each, a "SERVICER DEFAULT") shall occur
and be continuing:

          (a) any failure by the Servicer to deposit or credit to the Collection
Account or the Payahead Account any amount required under this Agreement to be
so deposited or credited that shall continue unremedied for a period of three
Business Days after written notice of such failure is received by the Servicer
from the Issuer, the Indenture Trustee or the Insurer or after discovery of such
failure by an officer of the Servicer;

          (b) the Insurer, the Indenture Trustee, the Issuer or the Trust Agent
shall not have received a report in accordance with Section 3.09 by the Servicer
Report Date with respect to which such report is due;

          (c) any failure on the part of the Seller or the Servicer duly to
observe or to perform in any material respect any other covenants or agreements
of the Seller or the Servicer set forth in this Agreement or any other Basic
Document, which failure shall (i) materially and adversely affect the rights of
the Noteholders, the Insurer, the Issuer, the Owner Trustee or the Indenture
Trustee and (ii) continue unremedied for a period of 30 days after the date on
which written notice of such failure, requiring the same to be remedied, shall
have been given (A) to the Seller or the Servicer, as the case may be, by the
Insurer, the Issuer, the Owner Trustee or the Indenture Trustee or (B) to the
Seller or the Servicer, as the case may be, and to the Issuer and the Indenture
Trustee by the Holders of Notes, acting together as a single Class, evidencing
in the aggregate not less than 25% of the outstanding amount of the Notes, or
(2) so long as no Insurer Default has occurred and is continuing, by the
Insurer;

          (d) the entry of a decree or order for relief by a court or regulatory
authority having jurisdiction in respect of the Servicer or the Seller in an
involuntary case under the federal bankruptcy laws, as now or hereafter in
effect, or another present or future, federal or state, bankruptcy, insolvency
or similar law, or appointing a receiver, liquidator, assignee, trustee,
custodian, sequestrator or other similar official of the Servicer or the Seller
or of any substantial part of its property, or ordering the winding up or
liquidation of the affairs of the Servicer or the Seller and the continuance of
any such decree or order unstayed and in effect for a period of 60 consecutive
days or the commencement of an involuntary case under the federal bankruptcy
laws, as now or hereinafter in effect, or another present or future federal or
state bankruptcy, insolvency or similar law and such case is not dismissed
within 60 days;

          (e) the commencement by the Servicer or the Seller of a voluntary case
under the federal bankruptcy laws, as now or hereafter in effect, or any other
present or future, federal or state, bankruptcy, insolvency or similar law, or
the consent by the Servicer or the Seller to the appointment of or taking
possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator
or other similar official of the Servicer or the Seller or of any substantial
part of its property or the making by the Servicer or the Seller of an
assignment for the benefit of creditors or the failure by the Servicer or the
Seller generally to pay its debts as such debts become due or the taking of
corporate action by the Servicer or the Seller in furtherance of any of the
foregoing;

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<PAGE>   73

          (f) any change of control of the Servicer in violation of the covenant
set forth in Section 6.02 hereof;

          (g) any representation, warranty or statement of the Servicer or the
Seller made in this Agreement or any certificate, report or other writing
delivered pursuant hereto shall prove to be incorrect in any material respect as
of the time when the same shall have been made (excluding, however, any
representation or warranty as to which Section 2.03 or 3.07 shall be applicable
so long as the Servicer or the Seller shall be in compliance with Section 2.03
or 3.07, as the case may be), and the incorrectness of such representation,
warranty or statement has a material adverse effect on the Noteholders or the
Insurer and, within 30 days after written notice thereof shall have been given
to the Servicer or the Seller by the Indenture Trustee or the Issuer or by
Holders evidencing in the aggregate not less than 25% of the outstanding amount
of the Notes, acting together as a single Class, or, so long as no Insurer
Default has occurred and is continuing, by the Insurer, the circumstance or
condition in respect of which such representation, warranty or statement was
incorrect shall not have been eliminated or otherwise cured;

          (h) a Trigger Event (as defined in the Insurance Agreement) shall have
occurred;

then and in each and every case, so long as such Servicer Default shall not have
been remedied, either (i) the Insurer, provided no Insurer Default has occurred
and is continuing or (ii) if an Insurer Default has occurred and is continuing
Holders evidencing not less than 25% of the outstanding principal amount of the
Notes, acting together as a single Class, or the Indenture Trustee acting on
behalf of the Noteholders, and not the Seller, by notice then given in writing
to the Servicer (and to the Insurer, the Indenture Trustee and the Issuer if
given by the Noteholders) may terminate all the rights and obligations of the
Servicer under this Agreement. Upon such termination, termination of the
Servicer as custodian, if the Servicer is acting as such, can be made pursuant
to Section 2.08. On or after the receipt by the Servicer of such written notice,
all authority and power of the Servicer under this Agreement, whether with
respect to the Notes, the Contracts or otherwise, shall, without further action,
pass to and be vested in the Indenture Trustee or such Successor Servicer as may
be appointed under Section 7.02; and, without limitation, the Indenture Trustee
and the Issuer are hereby authorized and empowered to execute and deliver on
behalf of the Servicer, as attorney-in fact or otherwise, any and all documents
and other instruments, and to do or accomplish all other acts or things
necessary or appropriate to effect the purposes of such notice of termination,
whether to complete the transfer and endorsement of the Contracts and related
documents, or otherwise. The Servicer shall cooperate with the Indenture Trustee
and the Issuer in effecting the termination of the responsibilities and rights
of the Servicer under this Agreement, including the transfer to the Indenture
Trustee for administration by it of all cash amounts that (i) shall at the time
be held by the Servicer for deposit in, or shall have been deposited by the
Servicer in, the Collection Account or Payahead Account or (ii) shall thereafter
be received by it with respect to any Contract.

          Notwithstanding the foregoing, in the event that Onyx is not the
Servicer, then all references to the Seller in this Section 7.01 shall be of no
force and effect, and no act of Seller shall constitute a Servicer Default
hereunder.

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     SECTION 7.02. TRUSTEE TO ACT; APPOINTMENT OF SUCCESSOR.

     Upon the termination of the Servicer by the Insurer pursuant to Section
7.01 or resignation of the Servicer pursuant to Section 6.04, the Insurer shall
appoint a successor servicer ("SUCCESSOR SERVICER"). Upon the termination of the
Servicer by the Indenture Trustee or the Noteholders pursuant to Section 7.01,
or upon the resignation of the Servicer pursuant to Section 6.04 in the event
that the Insurer is not entitled to appoint a successor servicer by operation of
Section 9.08, (i) if the Notes have not been paid in full, the Indenture Trustee
shall be the Successor Servicer, and (ii) if the Notes have been paid in full,
the Owner Trustee, acting at the direction of the Holders of Residual Interest
Instruments evidencing not less than 51% of the Percentage Interests shall
appoint a Successor Servicer. The Successor Servicer shall succeed to all the
responsibilities, duties and liabilities of the Servicer under this Agreement,
except that such Successor Servicer shall not be obligated to purchase Contracts
pursuant to Section 3.07. If the Indenture Trustee acts as Successor Servicer,
the Indenture Trustee shall be entitled to such compensation (whether payable
out of the Collection Account or otherwise) as the Servicer would have been
entitled to under this Agreement if no such notice of termination shall have
been given. Notwithstanding the foregoing, if the Notes have not been paid in
full, the Indenture Trustee may, if it shall be unwilling to act, or shall, if
it shall be legally unable to so act, appoint, or petition a court of competent
jurisdiction to appoint, any established financial institution, having a net
worth of not less than $50,000,000 and whose regular business shall include the
servicing of automotive retail installment sales contracts, as the successor to
the Servicer under this Agreement. Pending appointment of any such Successor
Servicer, the Indenture Trustee shall act in such capacity as provided above. In
connection with such appointment, the Indenture Trustee or any other Successor
Servicer may make such arrangements for the compensation of such successor out
of payments on Contracts as it, the Insurer and such successor shall agree;
provided, however, (i) that such amount shall equal the product of a fixed
percentage rate and the Principal Balance, as of the commencement of each
Collection Period, of each Contract and (ii) that no such compensation shall be
in excess of that previously permitted the Servicer under this Agreement. The
Indenture Trustee and such successor shall take such action, consistent with
this Agreement, as shall be necessary to effectuate any such succession.

     SECTION 7.03. NOTIFICATION TO NOTEHOLDERS AND RESIDUAL INTERESTHOLDERS.

     Upon any termination of, or appointment of a successor to, the Servicer
pursuant to this Article, the Trust Agent shall give prompt written notice
thereof to Residual Interestholders at their respective addresses appearing in
the Certificate Register, and the Indenture Trustee shall give prompt written
notice thereof to Noteholders at their respective addresses appearing in the
Note Register.

     SECTION 7.04. WAIVER OF PAST DEFAULTS.

     Upon the occurrence of a Servicer Default, unless an Insurer Default shall
have occurred and be continuing, the Insurer, and only the Insurer, may waive
any default by the Servicer or the Seller, as the case may be, in the
performance of its obligations under this Agreement except a Servicer Default in
making any required deposits to or payment from the Trust Accounts in accordance
with this Agreement. Upon the occurrence of a Servicer Default, if an Insurer
Default has occurred and is continuing, Holders evidencing not less than 51% of
the outstanding principal amount of the Notes, acting together as a single
Class, on behalf of all Noteholders, shall have the right to waive any default
by the Servicer or the Seller, as the case may be, in the performance of its
obligations

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under this Agreement except a Servicer Default in making any required deposits
to or payment from the Trust Accounts in accordance with this Agreement. A
Servicer Default in making any required deposits to or payment from the Trust
Accounts in accordance with this Agreement may only be waived with the consent
of the Insurer (if no Insurer Default shall have occurred and be continuing) and
Holders evidencing 100% of the outstanding principal amount of the Notes. No
such waiver shall impair the Insurer's or the Noteholders' rights with respect
to subsequent defaults.

     SECTION 7.05. INSURER DIRECTION OF INSOLVENCY PROCEEDINGS.

     The Indenture Trustee, upon the actual knowledge of a Responsible Officer
of the Indenture Trustee, shall promptly notify the Insurer of (i) the
commencement of any of the events or proceedings (individually, an "INSOLVENCY
PROCEEDING") described in the Section 7.01(d) or 7.01(e) hereof and (ii) the
making of any claim in connection with any Insolvency Proceeding seeking the
avoidance as a preferential transfer (a "PREFERENCE CLAIM") of any payment of
principal of, or interest on, any Notes. Any Preference Amounts paid by the
Insurer shall be reimbursed to the Insurer as provided in Section 4.03 and
4.04(b). Each Noteholder, by its purchase of Notes, the Owner Trustee, the Trust
Agent and the Indenture Trustee hereby agree that, so long as no Insurer Default
has occurred and is continuing, the Insurer may at any time during the
continuation of an Insolvency Proceeding direct all matters relating to such
Insolvency Proceeding, including, without limitation, (i) all matters relating
to any Preference Claim, (ii) the direction of any appeal of any order relating
to any Preference Claim and (iii) the posting of any surety or performance bond
pending any such appeal. The Insurer shall be subrogated to the rights of the
Indenture Trustee, the Owner Trustee, the Trust Agent and each Noteholder in the
conduct of any Insolvency Proceeding, including, without limitation, all rights
of any party to an adversary proceeding action with respect to any court order
issued in connection with any such Insolvency Proceeding.

                                  ARTICLE VIII

                                   TERMINATION

     SECTION 8.01. OPTIONAL PURCHASE OF ALL CONTRACTS; SATISFACTION AND
DISCHARGE OF THE INDENTURE.

     (a) On each Distribution Date as of which the Pool Balance is 10% or less
of the Original Pool Balance, the Servicer shall have the option to purchase the
remaining Contracts from the Trust. Notice of the exercise of such option shall
be given by the Servicer to the Issuer, the Trust Agent, the Indenture Trustee
and the Insurer not later than the 10th day prior to the specified Distribution
Date and not earlier than the 15th day of the month prior to the month of the
specified Distribution Date. To exercise such option, the Servicer shall pay to
the Indenture Trustee for the benefit of the Noteholders, by deposit in the
Collection Account on the Business Day immediately preceding the related
Distribution Date, the greater of (i) the sum of (x) the Pool Balance on the
date of repurchase plus (y) accrued and unpaid interest on the Contracts and
(ii) the sum of (x) the aggregate unpaid principal amount of the Notes plus (y)
accrued and unpaid interest thereon plus (z) all amounts due to the Insurer
under the Insurance Agreement and any unreimbursed Insurer Defense Costs. Such
purchase shall be deemed to have occurred on the last day of the related
Collection Period.

     (b) Notice of any termination of the Trust shall be given by the Servicer
to the Owner Trustee, the Trust Agent, the Insurer and the Indenture Trustee as
soon as practicable after the Servicer has received notice thereof. Such notice
shall conform to the notice described in Section 9.01(c) of the Trust Agreement.

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     (c) Following the satisfaction and discharge of the Indenture and the
payment in full of the principal of and interest on the Notes, the Residual
Interestholders will succeed to the rights of the Noteholders hereunder and the
Owner Trustee and, on its behalf, the Trust Agent, will succeed to the rights
of, and assume the obligations of, the Indenture Trustee pursuant to this
Agreement.

     SECTION 8.02. TRANSFER TO THE INSURER.

     If (i) there are one or more Outstanding Contracts at the end of the
Collection Period ending immediately prior to the Class A-4 Final Scheduled
Distribution Date and (ii) an amount sufficient to pay the Note Distributable
Amount on the Class A-4 Final Scheduled Distribution Date has been deposited
with the Indenture Trustee by the Insurer for the benefit of the Noteholders,
then on the Class A-4 Final Scheduled Distribution Date, the Class A-4 Notes
shall be deemed to be transferred by the Class A-4 Noteholders to the Insurer or
its designee as purchaser thereof at the opening of business on the Class A-4
Final Scheduled Distribution Date and the Indenture Trustee shall execute, and
the Trust Agent shall authenticate and deliver to the Insurer or its designee,
in the name of the Insurer or its designee, as the case may be, a new Class A-4
Note evidencing the entire outstanding principal amount of the Class A-4 Notes.
Such new Class A-4 Note shall have the same terms as the Class A-4 Notes deemed
transferred by the Class A-4 Noteholders. No service charge shall be made for
the issuance of such Class A-4 Note to the Insurer or its designee, but the
Indenture Trustee or Trust Agent may require payment of a sum sufficient to
cover any tax or other governmental charge imposed in connection therewith. Such
transfer shall not diminish or restrict the Insurer's rights hereunder or under
the Insurance Agreement.

                                   ARTICLE IX

                                  MISCELLANEOUS

     SECTION 9.01. AMENDMENT.

     (a) This Agreement may be amended by the Issuer, the Seller, the Servicer,
the Indenture Trustee and the Trust Agent, collectively, with the prior written
consent of the Insurer, but without the consent of any Noteholders, to cure any
ambiguity, to correct or supplement any provisions in this Agreement which are
inconsistent with the provisions herein, or to make any other provisions with
respect to matters or questions arising under this Agreement which are not
inconsistent with the provisions of this Agreement; provided, however, that any
such action shall not materially and adversely affect the interests of any
Noteholder; and provided, further, that any such amendment shall be deemed not
to materially and adversely affect the interests of any Noteholder if the Person
requesting the amendment obtains a letter or confirmation from each Rating
Agency to the effect that such amendment would not result in a downgrading or
withdrawal of the ratings then assigned to the applicable Notes by such Rating
Agency.

     (b) This Agreement may also be amended by the Issuer, the Seller, the
Servicer, the Indenture Trustee and the Trust Agent, with the consent of the
Insurer and the Holders of Notes evidencing in the aggregate not less than 51%
of the principal amount of the Notes then outstanding, acting together as a
single Class, for the purpose of adding any provisions to or changing in any

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manner or eliminating any of the provisions of this Agreement, or of modifying
in any manner the rights of the Noteholders; provided, however, that no such
amendment shall (i) increase or reduce in any manner the amount of, or
accelerate or delay the timing of, collections of payments on the Contracts or
distributions that shall be required to be made for the benefit of the
Noteholders or (ii) reduce the aforesaid percentage of the outstanding amount of
the Notes the Holders of which are required to consent to any such amendment,
without the consent of all affected Noteholders.

     (c) Promptly after the execution of any such amendment or consent, the
Indenture Trustee shall furnish the written notification of the substance of
such amendment or consent to each Noteholder, respectively.

     (d) It shall not be necessary for the consent of Noteholders pursuant to
Section 9.01(b) to approve the particular form of any proposed amendment or
consent, but it shall be sufficient if such consent shall approve the substance
thereof. The manner of obtaining such consents and of evidencing the
authorization by Noteholders of the execution thereof shall be subject to such
reasonable requirements as the Indenture Trustee may prescribe. Any consent by a
Noteholder to an amendment of the Agreement shall be conclusive and binding on
such Noteholder and upon all future Noteholders of such Note and of any Note
issued upon the transfer thereof or in exchange thereof or in lieu thereof
whether or not notation of such consent is made upon such Note.

     (e) The Trust Agent and the Indenture Trustee may, but shall not be
obligated to, enter into any such amendment which affects the Trust Agent's or
the Indenture Trustee's own rights, duties or immunities under this Agreement or
otherwise and any such amendment shall be unenforceable in its entirety absent
the execution of such amendment by the Trust Agent and the Indenture Trustee.

     SECTION 9.02. PROTECTION OF TITLE TO TRUST.

     (a) The Servicer shall execute and file such financing statements and cause
to be executed and filed such continuation statements, all in such manner and in
such places as may be required by law fully to preserve, maintain and protect
the interest of the Issuer, the Noteholders, the Indenture Trustee, the Trust
Agent and the Insurer in the Contracts and in the proceeds thereof. The Servicer
shall deliver (or cause to be delivered) to the Trust Agent and the Indenture
Trustee file- stamped copies of, or filing receipts for, any document filed as
provided above, as soon as available following such filing.

     (b) Neither the Seller nor the Servicer shall change its name, identity or
corporate structure in any manner that would, could or might make any financing
statement or continuation statement filed in accordance with Section 9.02(a)
seriously misleading within the meaning of Section 9-402(7) of the UCC, unless
it shall have given the Insurer, the Trust Agent and the Indenture Trustee at
least 60 days' prior written notice thereof.

     (c) The Seller and the Servicer shall give the Insurer, the Trust Agent and
the Indenture Trustee at least 60 days' prior written notice of any relocation
of the principal executive office of the Seller and the Servicer if, as a result
of such relocation, the applicable provisions of the UCC would require the
filing of any amendment of any previously filed financing or continuation
statement or of any new financing statement. The Servicer shall at all times
maintain each office from which it shall service Contracts, and its principal
executive office, within the United States.

                                      -73-
<PAGE>   78

     (d) The Servicer shall maintain or cause to be maintained accounts and
records as to each Contract accurately and in sufficient detail to permit (i)
the reader thereof to know at any time the status of such Contract, including
payments and recoveries made and payments owing (and the nature of each) and
(ii) reconciliation between payments or recoveries on (or with respect to) each
Contract and the amounts from time to time deposited in or credited to the
Collection Account and the Payahead Account in respect of such Contract.

     (e) The Servicer shall maintain or cause to be maintained its computer
systems so that, from and after the time of sale under this Agreement of the
Contracts to the Issuer, the Servicer's master computer records (including any
backup archives) that shall refer to a Contract indicate clearly the interest of
the Issuer and the Indenture Trustee in such Contract and that such Contract is
owned by the Issuer and has been pledged to the Indenture Trustee.

     (f) If at any time the Seller or the Servicer shall propose to sell, grant
a security interest in, or otherwise transfer any interest in automotive retail
installment sales contracts or installment loan agreements to any prospective
purchaser, lender or other transferee, the Servicer shall give or cause to be
given to such prospective purchaser, lender or other transferee computer tapes,
records or print-outs (including any restored from back-up archives) that, if
they shall refer in any manner whatsoever to any Contract, shall indicate
clearly that such Contract has been sold and is owned by the Issuer and has been
pledged to the Indenture Trustee.

     (g) The Servicer shall permit the Owner Trustee, the Trust Agent, the
Indenture Trustee and the Insurer and their respective agents, at any time
during normal business hours, to inspect, audit and make copies of and abstracts
from the Servicer's records regarding any Contract.

     (h) Upon request, the Servicer shall furnish to the Owner Trustee, the
Trust Agent, the Indenture Trustee and the Insurer, within five Business Days, a
list of all Contracts then held as part of the Trust Property, together with a
reconciliation of such list to the Schedule of Contracts and to each of the
Distribution Date Statements furnished before such request indicating removal of
Contracts from the Trust.

     (i) The Servicer shall deliver to the Trust Agent, the Indenture Trustee
and the Insurer:

          (i)    promptly after the execution and delivery of this Agreement and
                 of each amendment hereto, an Opinion of Counsel stating that,
                 in the opinion of such counsel, all financing statements and
                 continuation statements have been executed and filed that are
                 necessary fully to preserve and protect the interest of the
                 Issuer and the Indenture Trustee in the Contracts, and reciting
                 the details of such filings or referring to prior Opinions of
                 Counsel in which such details are given, or (B) stating that,
                 in the opinion of such counsel, no such action shall be
                 necessary to preserve and protect such interest; and

          (ii)   within 90 days after the beginning of each calendar year
                 beginning with the first calendar year beginning more than
                 three months after the Closing Date an Opinion of Counsel,
                 dated as of a date during such 90-day period, either (A)
                 stating that, in the opinion of such counsel, all financing
                 statements and continuation statements have been executed and
                 filed that are necessary fully to preserve and protect the
                 interest of the Issuer and the Indenture Trustee in the
                 Contracts, and reciting the details of such filings or
                 referring to prior Opinions of Counsel in which such details
                 are given or (B) stating that, in the opinion of such counsel,
                 no such action shall be necessary to preserve and protect such
                 interest.

                                      -74-
<PAGE>   79

     (j) The Seller shall, to the extent required by applicable law, cause the
Notes to be registered with the Securities and Exchange Commission pursuant to
Section 12(b) or Section 12(g) of the Securities Exchange Act of 1934, as
amended, within the time periods specified in such sections.

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

     SECTION 9.03. GOVERNING LAW.

     THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF CALIFORNIA AND THE OBLIGATIONS, RIGHTS, AND REMEDIES OF THE PARTIES UNDER THE
AGREEMENT SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS, EXCEPT THAT THE
DUTIES OF THE TRUST AGENT AND THE INDENTURE TRUSTEE SHALL BE GOVERNED BY THE
LAWS OF THE STATE OF NEW YORK.

     SECTION 9.04. NOTICES.

     All demands, notices and communications under this Agreement shall be in
writing, personally delivered or mailed by certified mail, return receipt
requested, and shall be deemed to have been duly given upon receipt in the case
of

          (i)    the Seller, at 27051 Towne Centre Drive, Suite 200, Foothill
                 Ranch, CA 92610, Attention: John W. Hall, President, facsimile
                 (949) 465- 3530;

          (ii)   the Servicer, at 27051 Towne Centre Drive, Suite 100, Foothill
                 Ranch, CA 92610, Attention: Don P. Duffy, Executive Vice
                 President, facsimile (949) 465-3992;

          (iii)  the Insurer, at 113 King Street, Armonk, New York 10504,
                 Attention: Insured Portfolio Management, Structured Finance,
                 facsimile (914) 765-3810;

          (iv)   the Issuer or the Owner Trustee, at the Owner Trustee Corporate
                 Trust Office (with, in the case of the Issuer, a copy to the
                 Seller);

          (v)    the Trust Agent, at the Trust Agent Office;

                                      -75-
<PAGE>   80

          (vi)   the Indenture Trustee, at the Corporate Trust Office;

          (vii)  Moody's, to Moody's Investors Service, Inc., ABS Monitoring
                 Department, 99 Church Street, New York, New York 10007;

          (viii) Standard & Poor's, to Standard & Poor's Ratings Services, 55
                 Water Street, New York, New York 10041, Attention: Asset Backed
                 Surveillance Department; and

          (ix)   the Custodian, to Onyx Acceptance Corporation, 27051 Towne
                 Centre Drive, Suite 100, Foothill Ranch, CA 92610, Attention:
                 Don P. Duffy, Executive Vice President, facsimile (949)
                 465-3992.

or, as to each of the foregoing, at such other address as shall be designated by
written notice to the other parties. Any notice required or permitted to be to
be mailed to a Noteholder shall be given by first class mail, postage prepaid,
at the address of such Holder as shown in the Note Register. Any notice so
mailed within the time prescribed herein shall be conclusively presumed to have
been duly given, whether or not such Noteholder shall receive such notice.

     SECTION 9.05. SEVERABILITY OF PROVISIONS.

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

     SECTION 9.06. ASSIGNMENT.

     Notwithstanding anything to the contrary contained herein, except as
provided in Sections 5.02 and 6.02, neither the Seller nor the Servicer may
transfer or assign all, or a portion of, its rights, obligations and duties
under this Agreement unless such transfer or assignment (i) (A) will not result
in a reduction or withdrawal by any Rating Agency of the rating then assigned by
it to the Notes and (B) the Issuer, the Indenture Trustee and the Insurer have
consented to such transfer or assignment, or (ii) the Insurer, the Issuer, the
Indenture Trustee and Holders of Notes of each Class evidencing not less than
51% of the outstanding amount of Notes of such Class consent thereto. Any
transfer or assignment with respect to the Servicer of all of its rights,
obligations and duties will not become effective until a Successor Servicer has
assumed the Servicer's rights, duties and obligations under this Agreement. In
the event of a transfer or assignment pursuant to clause (ii) above, each Rating
Agency shall be provided with notice of such transfer or assignment.

     SECTION 9.07. THIRD PARTY BENEFICIARIES.

     Except as otherwise specifically provided herein, the parties to this
Agreement hereby manifest their intent that no third parties other than the
Insurer and, solely for the purposes of Section 6.01, the Owner Trustee and the
Trust Agent, shall be deemed a third party beneficiary of this Agreement, and
specifically that the Obligors are not third party beneficiaries of this
Agreement.

                                      -76-
<PAGE>   81

     SECTION 9.08. CERTAIN MATTERS RELATING TO THE INSURER.

     So long as an Insurer Default shall not have occurred and be continuing,
the Insurer shall have the right to exercise all rights, including voting
rights, which the Noteholders are entitled to exercise pursuant to this
Agreement, without any consent of such Noteholders; provided, however, that
without the consent of each Noteholder or Residual Interestholder affected
thereby, the Insurer shall not exercise such rights to amend this Agreement in
any manner that would (i) reduce the amount of, or delay the timing of,
collections of payments on the Contracts or distributions which are required to
be made on any Note or Residual Interest Instrument, (ii) adversely affect in
any material respect the interests of the Holders of any Notes or Residual
Interest Instruments or (iii) alter the rights of any such Holder to consent to
such amendment.

     Notwithstanding any provision in this Agreement to the contrary, for so
long as an Insurer Default shall have occurred and be continuing, the Insurer
shall not have the right to take any action under this Agreement or to control
or direct the actions of the Trust, the Seller, the Indenture Trustee, the
Servicer or the Trust Agent pursuant to the terms of this Agreement, nor shall
the consent of the Insurer be required with respect to any action (or waiver of
a right to take action) to be taken by the Trust, the Seller, the Indenture
Trustee, the Servicer, the Trust Agent or the Holders of the Notes pursuant to
the terms of this Agreement; provided, that the consent of the Insurer shall be
required at all times with respect to any amendment of this Agreement.

     SECTION 9.09. HEADINGS.

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

     SECTION 9.10. ASSIGNMENT BY ISSUER.

     The Seller hereby acknowledges and consents to any mortgage, pledge,
assignment and grant of a security interest by the Issuer to the Indenture
Trustee pursuant to the Indenture for the benefit of the Noteholders and the
Insurer of all right, title and interest of the Issuer in, to and under the
Contracts and/or the assignment of any or all of the Issuer's rights and
obligations hereunder to the Indenture Trustee.

     SECTION 9.11. LIMITATION OF LIABILITY OF CERTAIN PARTIES.

     Notwithstanding anything contained herein to the contrary, this instrument
has been executed by Bankers Trust (Delaware) not in its individual capacity but
in its capacity as Owner Trustee of the Issuer and by The Chase Manhattan Bank
not in its individual capacity but in its capacity as Indenture Trustee and
Trust Agent, and in no event shall Bankers Trust (Delaware) in its individual
capacity, The Chase Manhattan Bank 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.

     SECTION 9.12. ACKNOWLEDGMENT OF PARTIES; INSURER DEFENSE COSTS.

     Each of the Seller, the Servicer, the Issuer and the Indenture Trustee
acknowledge Section 4.06 of the Trust Agreement, and agree that the Trust shall
reimburse the Insurer for all Insurer Defense Costs pursuant to the applicable
provisions of the Indenture and the Sale and Servicing Agreement.

                                      -77-
<PAGE>   82

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

                                            ONYX ACCEPTANCE OWNER TRUST 2001-B
                                            as Issuer

                                            By: Bankers Trust (Delaware), not
                                                in its individual capacity but
                                                solely as Owner Trustee

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

                                            ONYX ACCEPTANCE FINANCIAL
                                            CORPORATION, as Seller

                                            By:
                                                ------------------------------
                                                    Michael A. Krahelski
                                                    Senior Vice President

                                            ONYX ACCEPTANCE CORPORATION, as
                                            Servicer and Custodian

                                            By:
                                                --------------------------------
                                                    Don P. Duffy
                                                    Executive Vice President and
                                                    Chief Financial Officer

                                            THE CHASE MANHATTAN BANK, not in its
                                            individual capacity but solely as
                                            Indenture Trustee and as Trust Agent

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

                                      -78-

<PAGE>   83

                                  SCHEDULE I-A

                          SCHEDULE OF INITIAL CONTRACTS

                           [On file with the Servicer]

<PAGE>   84

                                  SCHEDULE I-B

                        SCHEDULE OF SUBSEQUENT CONTRACTS

                           [On file with the Servicer]

<PAGE>   85

                                   SCHEDULE II

                 LOCATION AND ACCOUNT NUMBERS OF TRUST ACCOUNTS

                              [Begins on Next Page]

<PAGE>   86

                                    EXHIBIT A

                        FORM OF APPOINTMENT OF CUSTODIAN

[Name and address of Custodian]

     Re: Onyx Acceptance Owner Trust 2001-B
         Auto Loan Backed Notes, Series 2001-B

Dear Sirs:

     Reference is hereby made to the Sale and Servicing Agreement (the "Sale and
Servicing Agreement") dated as of May 1, 2001 by and among Onyx Acceptance Owner
Trust 2001-B, as Issuer (the "Issuer"), Onyx Acceptance Corporation, Onyx
Acceptance Financial Corporation and The Chase Manhattan Bank, as Indenture
Trustee (the "Indenture Trustee") and Trust Agent ("Trust Agent"). Terms used
herein which are defined in the Sale and Servicing Agreement have the respective
meanings set forth in the Sale and Servicing Agreement.

     You are revocably appointed as the agent of and bailee for the Indenture
Trustee to act as custodian, in accordance with the terms and provisions of the
Sale and Servicing Agreement, of the Contract Documents relating to each
Contract and the related Obligor and Financed Vehicle. Please acknowledge your
acceptance of such appointment and your agreement to act as custodian in
accordance with the terms and provisions of the Sale and Servicing Agreement by
signing below in the space indicated therefor.

     By accepting such appointment you acknowledge that (i) the Indenture
Trustee (if the Notes have not been paid in full and the Indenture has not been
satisfied and discharged) and the Issuer or (ii) the Insurer, may terminate such
appointment at any time, with or without cause, by written notice to you.

                                            Very truly yours,

                                            THE CHASE MANHATTAN BANK,
                                            not in its individual capacity, but
                                            solely as Indenture Trustee

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

                                            ONYX ACCEPTANCE OWNER TRUST 2001-B

                                            By: Bankers Trust (Delaware),
                                                not in its individual capacity,
                                                but solely as Owner Trustee

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

ACCEPTED AND AGREED:

[Name of Custodian]

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

MBIA Insurance Corporation

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

<PAGE>   87

                                    EXHIBIT B

                                 FORM OF POLICY

                              [Begins on Next Page]

<PAGE>   88

                                   EXHIBIT C-1

                          FORM OF TRANSFER CERTIFICATE

     The Transfer Certificate, dated as of _________, 2001, is delivered
pursuant to Section 2.01(c) of the Sale and Servicing Agreement dated as of May
1, 2001 (the "AGREEMENT") between Onyx Acceptance Owner Trust 2001-B, as Issuer
(the "ISSUER"), Onyx Acceptance Financial Corporation, as Seller (the "SELLER"),
Onyx Acceptance Corporation, as Servicer and Custodian, and The Chase Manhattan
Bank, as Indenture Trustee and as Trust Agent (the "INDENTURE TRUSTEE"). Terms
used in this Transfer Certificate which are not defined herein have meanings
assigned to such terms in the Agreement.

     I, __________________, the ____________ of the Seller, do hereby certify:

     1. Attached hereto as Schedule I is a list of Prefunded Contracts setting
forth the Contract Number, Date of Origination, Maturity Date, Monthly P&I,
Original Principal Balance, Outstanding Principal Balance and APR for each such
Prefunded Contract. Such Schedule I is a list of Prefunded Contracts referred to
in the definition of "Schedule of Contracts" in the Agreement, and is deemed
incorporated into and made a part thereof. Such Prefunded Contracts have an
aggregate Outstanding Principal Balance of $________________, and all Contract
Documents relating thereto have been delivered to the Custodian as of the date
hereof. The Prefunding Cut-Off Date with respect to the Prefunded Contracts
transferred on the date hereof is _____________, 2001.

     2. The aggregate Outstanding Principal Balance of all Prefunded Contracts
as of their respective Prefunding Cut-Off Dates delivered to the Custodian, on
behalf of the Indenture Trustee, pursuant to this Transfer Certificate and each
Transfer Certificate delivered up to the date hereof and after the Closing Date
is $_________, which amount is less than or equal to the Prefunded Amount.

     3. Each of the conditions set forth in Sections 2.01(c) and 4.08 of the
Agreement has been met as of this Prefunding Transfer Date.

     4. The representations and warranties as set forth in Section 2.02(a) and
(d) of the Agreement with respect to the Seller and the Prefunded Contracts
delivered hereunder are true and correct as of this Prefunding Transfer Date.

     Please transfer immediately available funds by 4:00 New York time today in
the amount of $___________________ to Seller in accordance with the wire
instructions below.

     IN WITNESS WHEREOF, the undersigned has caused this Transfer Certificate to
be delivered to the Issuer, the Indenture Trustee and the Insurer as of the date
first above written.

                                           ONYX ACCEPTANCE FINANCIAL CORPORATION

                                           By:
                                               --------------------------------
                                               Name:
                                               Office:

Wiring Instructions:

         Beneficiary:

         ------------:       --------------------------

                             --------------------------
         ABA:
                             --------------------------
         Bank Acct. #
                             --------------------------
         $ Amount:
                             --------------------------
         Notation:           Proceeds from 2001-B Owner Trust Prefunding Account

Consented to and agreed to (if the balance in the Prefunding Account prior to
the Prefunding Transfer Date to which this certificate relates exceeds
$30,000,000).

MBIA Insurance Corporation
<PAGE>   89

                                   EXHIBIT C-2

                   FORM OF PREFUNDING CLOSING DATE CERTIFICATE

     This Prefunding Closing Date Certificate, dated as of _________, 2001, is
delivered pursuant to Section 2.01(j) of the Sale and Servicing Agreement dated
as of May 1, 2001 (the "AGREEMENT") between Onyx Acceptance Owner Trust 2001-B,
as Issuer, Onyx Acceptance Financial Corporation, as Seller (the "SELLER"), Onyx
Acceptance Corporation, as Servicer and Custodian, and The Chase Manhattan Bank,
as Indenture Trustee and as Trust Agent (the "INDENTURE TRUSTEE"). Terms used in
this Prefunding Closing Date Certificate which are not defined herein have
meanings assigned to such terms in the Agreement.

     I, __________________, the ____________ of the Seller, do hereby certify:

     1. All Contract Documents relating to the Prefunded Contracts have been
delivered to the Custodian, on behalf of the Indenture Trustee, on or before the
date hereof.

     2. The aggregate Outstanding Principal Balance of all Prefunded Contracts
as of their respective Prefunding Transfer Dates conveyed to the Issuer and
pledged to the Indenture Trustee, as described in the Prefunding Transfer
Certificates delivered on and after the Closing Date up to the date hereof, is
$_________, which amount is less than or equal to the original Prefunded Amount.

     3. Each of the conditions set forth in Section 2.01(j) of the Agreement has
been met as of the Prefunding Closing Date and each of the conditions set forth
in Sections 2.01(c) and 4.08 of the Agreement was met as of each Prefunding
Transfer Date.

     IN WITNESS WHEREOF, the undersigned has caused this Prefunding Closing Date
Certificate to be delivered to each Rating Agency, the Insurer and the Indenture
Trustee as of the date first above written.

                                           ONYX ACCEPTANCE FINANCIAL CORPORATION

                                           By:
                                              ----------------------------------
                                               Name:
                                               Office:

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