Document:

EXHIBIT 4.2
                                                                   -----------

<PAGE>

                                                                     EXECUTION
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                     AMENDED AND RESTATED TRUST AGREEMENT

                                     among

                         HOUSEHOLD FINANCE CORPORATION

                           HFC REVOLVING CORPORATION
                                 as Depositor

                             THE BANK OF NEW YORK
                               as Owner Trustee

                        BANK ONE, NATIONAL ASSOCIATION
                                 as Co-Trustee

                                      and

                        THE BANK OF NEW YORK (DELAWARE)
                              as Delaware Trustee

                             Dated August 28, 2003

                    HOUSEHOLD HOME EQUITY LOAN TRUST 2003-1
         Closed-End Home Equity Loan Asset Backed Notes, Series 2003-1

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                               Table of Contents
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                                   ARTICLE I

                                  DEFINITIONS

<S>              <C>                                                                                             <C>
         Section 1.1       Capitalized Terms......................................................................1
         Section 1.2       Other Definitional Provisions..........................................................5

                                  ARTICLE II

                                 ORGANIZATION

         Section 2.1       Name...................................................................................7
         Section 2.2       Offices................................................................................7
         Section 2.3       Purposes and Powers....................................................................7
         Section 2.4       Appointment of Owner Trustee...........................................................8
         Section 2.5       Appointment of Delaware Trustee........................................................8
         Section 2.6       Appointment of Co-Trustee..............................................................8
         Section 2.7       Capital Contribution of Owner Trust Estate............................................10
         Section 2.8       Declaration of Trust..................................................................10
         Section 2.9       Title to Trust Property...............................................................10
         Section 2.10      Situs of Trust........................................................................11
         Section 2.11      Representations and Warranties of the Depositor.......................................11
         Section 2.12      Federal Income Tax Allocations........................................................12

                                  ARTICLE III

          OWNERSHIP INTEREST AND TRANSFERS OF THE OWNERSHIP INTEREST

         Section 3.1       Initial Ownership.....................................................................13
         Section 3.2       The Ownership Interest................................................................13
         Section 3.3       [Reserved]............................................................................13
         Section 3.4       Registration of Transfer and Exchange of Ownership Interest...........................13
         Section 3.5       [Reserved]............................................................................13
         Section 3.6       Persons Deemed Transferors............................................................13
         Section 3.7       [Reserved]............................................................................13
         Section 3.8       Maintenance of Office or Agency.......................................................13
         Section 3.9       Appointment of Paying Agent...........................................................14
         Section 3.10      [Reserved]............................................................................14
         Section 3.11      [Reserved]............................................................................14
         Section 3.12      [Reserved]............................................................................14
         Section 3.13      Restrictions on Transfers of Ownership Interest.......................................14

                                       i
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                                  ARTICLE IV

                           ACTIONS BY OWNER TRUSTEE

         Section 4.1       Prior Notice to the Transferor and the Indenture Trustee
                           with Respect to Certain Matters.......................................................17
         Section 4.2       [Reserved]............................................................................18
         Section 4.3       Action by Transferor with Respect to Bankruptcy.......................................19
         Section 4.4       Restrictions on Transferor's Power....................................................19

                                   ARTICLE V

                  APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

         Section 5.1       Establishment of Trust Account........................................................20
         Section 5.2       Application of Trust Funds............................................................20
         Section 5.3       Method of Payment.....................................................................20
         Section 5.4       [Reserved]............................................................................20
         Section 5.5       Accounting and Reports to the Transferor, the Internal Revenue Service and Others.....20
         Section 5.6       Signature on Returns..................................................................21

                                  ARTICLE VI

                     AUTHORITY AND DUTIES OF OWNER TRUSTEE

         Section 6.1       General Authority.....................................................................22
         Section 6.2       General Duties........................................................................22
         Section 6.3       Action upon Instruction...............................................................22
         Section 6.4       No Duties Except as Specified in this Agreement, the
                           Transaction Documents or in Instructions..............................................23
         Section 6.5       No Action Except Under Specified Documents or Instructions............................23
         Section 6.6       Restrictions..........................................................................24

                                  ARTICLE VII

             CONCERNING THE OWNER TRUSTEE AND THE DELAWARE TRUSTEE

         Section 7.1       Acceptance of Trusts and Duties.......................................................25
         Section 7.2       Furnishing of Documents...............................................................27
         Section 7.3       Representations and Warranties........................................................27
         Section 7.4       Reliance; Advice of Counsel...........................................................28
         Section 7.5       Not Acting in Individual Capacity.....................................................29
         Section 7.6       Owner Trustee Nor Delaware Trustee Liable for the Ownership
                           Interest or the Home Equity Loans.....................................................29
         Section 7.7       Owner Trustee and Delaware Trustee May Own the Ownership Interest and the Notes.......30

                                      ii
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         Section 7.8       Licenses..............................................................................30

                                 ARTICLE VIII

              COMPENSATION OF OWNER TRUSTEE AND DELAWARE TRUSTEE

         Section 8.1       Fees and Expenses.....................................................................31
         Section 8.2       Indemnification.......................................................................31
         Section 8.3       Payments to the Owner Trustee and Delaware Trustee....................................31
         Section 8.4       Non-recourse Obligations..............................................................31

                                  ARTICLE IX

                        TERMINATION OF TRUST AGREEMENT

         Section 9.1       Termination of Trust Agreement........................................................32

                                   ARTICLE X

            SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES;
                          SUCCESSOR DELAWARE TRUSTEES

         Section 10.1      Eligibility Requirements for Owner Trustee and Delaware Trustee.......................34
         Section 10.2      Resignation or Removal of Owner Trustee or Delaware Trustee...........................34
         Section 10.3      Successor Trustee.....................................................................35
         Section 10.4      Merger or Consolidation of Owner Trustee or Delaware Trustee..........................35
         Section 10.5      Appointment of Co-Owner Trustee or Separate Owner Trustee.............................36

                                  ARTICLE XI

                                 MISCELLANEOUS

         Section 11.1      Supplements and Amendments............................................................38
         Section 11.2      No Legal Title to Owner Trust Estate in Transferor....................................39
         Section 11.3      Limitations on Rights of Others.......................................................39
         Section 11.4      Notices...............................................................................39
         Section 11.5      Severability..........................................................................39
         Section 11.6      Separate Counterparts.................................................................40
         Section 11.7      Successors and Assigns................................................................40
         Section 11.8      No Petition...........................................................................40
         Section 11.9      [Reserved]............................................................................40
         Section 11.10     No Recourse...........................................................................40
         Section 11.11     Headings..............................................................................40
         Section 11.12     GOVERNING LAW.........................................................................40
         Section 11.13     Inconsistencies with Sale and Servicing Agreement.....................................40
         Section 11.14     Third Party Beneficiary...............................................................41
         Section 11.15     Master Servicer.......................................................................41

                                      iii
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EXHIBIT A         Certificate of Trust..........................................................................A-1
EXHIBIT B         Form of Transfer Certificate..................................................................B-1

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                                      iv
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         AMENDED AND RESTATED TRUST AGREEMENT, dated August 28, 2003, among
Household Finance Corporation ("HFC"), HFC Revolving Corporation, as depositor
(the "Depositor"), The Bank of New York, a New York banking corporation, as
owner trustee (in such capacity, the "Owner Trustee"), Bank One, National
Association, a national banking association, as co-trustee and not in its
individual capacity (the "Co-Trustee") and The Bank of New York (Delaware), a
Delaware banking corporation, as Delaware trustee (in such capacity, the
"Delaware Trustee").

                             PRELIMINARY STATEMENT

         WHEREAS, the Trust was formed pursuant to a Trust Agreement, dated as
of August 21, 2003, among the Depositor, the Owner Trustee, and the Delaware
Trustee;

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

                                   ARTICLE I

                                  DEFINITIONS

         Section 1.1 Capitalized Terms. For all purposes of this Agreement,
the following terms shall have the meanings set forth below:

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

         "Bankruptcy Action" shall have the meaning assigned to such term in
Section 4.1.

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

         "Code" shall mean the Internal Revenue Code of 1986, as amended.

         "Collection Account" shall have the meaning assigned to such term in
the Sale and Servicing Agreement.

         "Conduit PSA" shall mean the pooling and servicing agreement, dated
as of March 28, 2002, among the Depositor, as depositor, HFC, as master
servicer, and Bank One, National Association, as trustee, relating to the
Depositor's Closed-End Home Equity Loan Asset-Backed Certificates, Series
2002-A1, as amended by the First Amendment thereto dated as of March 27, 2003,
the Second Amendment thereto dated as of May 27, 2003 and the Third Amendment
thereto dated as of July 27, 2003.

         "Conduit Purchased Assets" shall have the meaning assigned to such
term in the Reassignment.

         "Conduit Transfer Agreement" shall mean the transfer agreement dated
March 28, 2002, among the Sellers and certain affiliated entities, as sellers,
and the Conduit Trustee, as trustee, as

<PAGE>

amended by the First Amendment thereto dated as of March 27, 2003, pursuant to
which the Sellers assigned to the Conduit Trustee all of their right, title
and interest in and on the Conduit Transferred Assets not otherwise
transferred pursuant to the Conduit Home Equity Loan Purchase Agreement.

         "Conduit Transferred Assets" shall have the meaning assigned to such
term in the Reassignment.

         "Conduit Trustee" shall mean Bank One, National Association, in its
capacity as trustee under the Conduit PSA.

         "Corporate Trust Office" shall mean, (i) with respect to the Delaware
Trustee, the principal corporate trust office of the Delaware Trustee, which
office, at date of execution of this Agreement, is located at White Clay
Center, Route 273, Newark, Delaware 19711, Attention: Corporate Trust
Administration; or at such other address in the State of Delaware as the
Delaware Trustee may designate by notice to the Transferor, the Owner Trustee
and the Trust, or the principal corporate trust office of any successor
Delaware trustee (the address of which the successor Delaware trustee will
notify the Transferor, the Owner Trustee and the Trust); or (ii) with respect
to the Owner Trustee, the principal corporate trust of the Owner Trustee,
which office, at date of execution of this Agreement, is located at 101
Barclay St., Floor 8W, New York, New York 10286, Attention: Asset Backed
Securities; or at such other address in the State of New York as the Owner
Trustee may designate by notice to the Transferor, the Delaware Trustee, the
Co-Trustee and the Trust, or the principal corporate trust office of any
successor owner trustee (the address of which the successor owner trustee will
notify the Delaware Trustee, the Transferor and the Trust); or (iii) with
respect to the Indenture Trustee, the principal corporate trust office of the
Indenture Trustee, which office at date of execution of this Agreement, is
located at One Bank One Plaza, Chicago, Illinois 60670, Attention: Indenture
Trust Administration, or at such other address as the Indenture Trustee may
designate by notice to the Owner Trustee, the Delaware Trustee, the Transferor
and the Trust, or the principal corporate trust office of any successor
Indenture Trustee (the address of which the successor indenture trustee will
notify the Owner Trustee, the Delaware Trustee, the Transferor and the Trust);
or (iv) with respect to the Co-Trustee, the principal corporate trust office
of the Co-Trustee, which office at date of execution of this Agreement, is
located at One Bank One Plaza, Chicago, Illinois 60670, Attention: Trust
Administration, or at such other address as the Co-Trustee may designate by
notice to the Transferor, the Owner Trustee and the Trust, or the principal
corporate trust office of any successor Co-Trustee (the address of which the
successor co-trustee will notify the Owner Trustee, the Delaware Trustee, the
Transferor and the Trust).

         "Co-Trustee" shall mean Bank One, National Association, a national
banking association, as co-trustee and not in its individual capacity under
this Agreement and any successor co-trustee hereunder.

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

         "Depositor" shall mean HFC Revolving Corporation or its successors.

                                      2
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         "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

         "Expenses" shall have the meaning assigned to such term in Section
8.2.

         "HFC" shall mean Household Finance Corporation or its successors.

         "Indenture" shall mean the Indenture, dated August 28, 2003, by and
between the Trust and the Indenture Trustee.

         "Indenture Trustee" shall mean Bank One, National Association, as
Indenture Trustee under the Indenture.

         "Initial Note Principal Amount" shall mean with respect to the Class
A Notes, $547,610,000 and with respect to the Class M Notes, $105,872,000.

         "Master Servicer" shall mean HFC, or any successor servicer appointed
pursuant to the Sale and Servicing Agreement.

         "Non-permitted Foreign Owner" shall have the meaning set forth in
Exhibit B hereto.

         "Non-U.S. Person" shall mean any Person other than (i) a citizen or
resident of the United States, (ii) an entity treated for United States
federal income tax purposes as a corporation or partnership created or
organized in or under the laws of the United States or any state thereof,
including the District of Columbia, (iii) an estate that is subject to U.S.
federal income tax regardless of the source of its income, (iv) a trust if a
court within the United States is able to exercise primary supervision over
the administration of the trust and one or more United States trustees have
authority to control all substantial decisions of the trust, or (v) certain
trusts in existence on August 20, 1996 and treated as United States persons on
such date that elect to continue to be so treated.

         "Owner Trust Estate" shall mean the contribution of $1,000 and one
share of the Depositor's Class SV-Q Preferred Stock referred to in Section 2.7
and the Trust Estate.

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

         "Ownership Interest" shall have the meaning specified in Section 3.2.

         "Plan" shall have the meaning assigned to such term in Section 3.13.

         "Prospective Transferor" shall mean any prospective purchaser or
prospective transferee of the Ownership Interest.

         "Rating Agency Condition" shall mean, with respect to certain actions
requiring Rating Agency consent, that each Rating Agency shall have been given
10 days (or such shorter period as is acceptable to each Rating Agency) prior
notice thereof and that each of the Rating Agencies

                                      3
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shall have notified the Depositor, the Owner Trustee and the Trust that such
action will not result in a reduction or withdrawal of such Rating Agency's
then current ratings of the Notes.

         "Reassignment" shall mean the reassignment dated August 28, 2003
pursuant to which the Conduit Trustee shall assign to (a) the Depositor all of
the Conduit Trustee's right, title and interest in and to the Conduit
Purchased Assets and (b) the Trust all of the Conduit Trustee's right, title
and interest in and to the Conduit Transferred Assets.

         "Record Date" shall mean the last Business Day preceding the related
Payment Date; provided, however, that following the date on which Definitive
Notes are available pursuant to Section 2.2 of the Indenture, the Record Date
shall be the last day of the calendar month preceding the month in which the
related Payment Date occurs.

         "Register" shall mean a register kept by the Registrar in which,
subject to such reasonable regulations as it may prescribe, the Registrar
shall provide for the registration of the Ownership Interest and the
registration of transfers of the Ownership Interest. The location of the
Registrar shall be the same as that of the Corporate Trust Office of the
Indenture Trustee.

         "Registrar" shall mean the Indenture Trustee as Registrar hereunder.

         "Sale and Servicing Agreement" shall mean the Sale and Servicing
Agreement, dated as of August 28, 2003, among the Trust, the Depositor, the
Indenture Trustee and the Master Servicer.

         "Secretary of State" shall mean the Secretary of State of the State
of Delaware.

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

         "Transaction Documents" shall mean each of the Indenture, the Sale
and Servicing Agreement, the Conduit Transfer Agreement, the Term Transfer
Agreement, the Reassignment, the Trust Agreement and this Agreement.

         "Term Transfer Agreement" shall mean the transfer agreement dated
August 28, 2003 between the Trust and certain of the Sellers pursuant to which
such Sellers will assign to the Trust all of their right, title and interest
in and on the Term Transferred Assets not otherwise transferred pursuant to
the Term Home Equity Loan Purchase Agreement.

         "Transferor" shall mean the owner of the Ownership Interest.

         "Transferred Assets" shall mean the Term Transferred Assets and the
Conduit Transferred Assets.

         "Treasury Regulations" shall mean 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.

                                      4
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         "Trust" shall mean Household Home Equity Loan Trust 2003-1, the
Delaware statutory trust governed pursuant to this Agreement.

         "Trust Agreement" shall mean the Trust Agreement, dated as of August
21, 2003, among the Depositor, the Owner Trustee and the Delaware Trustee.

         "Trust Estate" shall mean the assets transferred and assigned to the
Trust pursuant to the Sale and Servicing Agreement, the Term Transfer
Agreement, the Reassignment and this Agreement and pledged to the Indenture
Trustee pursuant to the Indenture, consisting of: (i) each Home Equity Loan
and each Eligible Substitute Home Equity Loan and its related Mortgage Note
and other Mortgage File documents for each Home Equity Loan and each Eligible
Substitute Home Equity Loan, including such Home Equity Loan's, and each such
Eligible Substitute Home Equity Loan's, Principal Balance and all collections
in respect thereof received after the Cut-Off Date or Subsequent Cut-Off Date,
as applicable; (ii) property that secured each Home Equity Loan and each
Eligible Substitute Home Equity Loan that has become REO; (iii) the interest
of the Depositor in certain hazard insurance policies maintained by the
Mortgagors or the Master Servicer in respect of each Home Equity Loan and each
Eligible Substitute Home Equity Loan transferred by the Depositor; (iv) the
Collection Account and all amounts on deposit in the Collection Account
(exclusive of net earnings thereon); (v) one share of Preferred Stock of the
Depositor; (vi) the Trust's rights under the Sale and Servicing Agreement;
(vii) any proceeds of any of the foregoing and (viii) all other assets
included or to be included in the Trust for the benefit of Noteholders.

         Section 1.2 Other Definitional Provisions.

         (a) Capitalized terms used herein and not otherwise defined herein
have the meanings assigned to them in the Sale and Servicing Agreement or, if
not defined therein, in the Indenture.

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

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

         (d) The words "hereof," "herein," "hereunder" and words of similar
import when used in this Agreement shall refer to this Agreement as a whole
and not to any particular provision of this Agreement; Section and Exhibit
references contained in this Agreement are

                                      5
<PAGE>

references to Sections and Exhibits in or to this Agreement unless otherwise
specified; and the term "including" shall mean "including without limitation."

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

         (f) Any agreement, instrument or statute defined or referred to
herein or in any instrument or certificate delivered in connection herewith
means such agreement, instrument or statute as from time to time amended,
modified or supplemented and includes (in the case of agreements or
instruments) references to all attachments thereto and instruments
incorporated therein; references to a Person are also to its permitted
successors and assigns.

                                      6
<PAGE>

                                  ARTICLE II

                                 ORGANIZATION

         Section 2.1 Name. The Trust created hereby shall be known as
"Household Home Equity Loan Trust 2003-1," in which name the Owner Trustee may
conduct the business of the Trust and make and execute contracts and other
instruments on behalf of the Trust and the Trust may sue and be sued.

         Section 2.2 Offices. The principal office of the Trust shall be in
care of the Delaware Trustee at the Corporate Trust Office of the Delaware
Trustee or at such other address in the State of Delaware as the Delaware
Trustee may designate by written notice to the Transferor, the Owner Trustee
and the Indenture Trustee. The New York office of the Trust will be in care of
the Owner Trustee at the Corporate Trust Office of the Owner Trustee or at
such other address in the State of New York as the Owner Trustee may designate
by written notice to the Transferor, the Delaware Trustee and the Indenture
Trustee.

         Section 2.3 Purposes and Powers.

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

          (i) to issue the Notes pursuant to the Indenture and the Ownership
     Interest pursuant to this Agreement and to sell such Notes and Ownership
     Interest;

          (ii) with the proceeds of the sale of the Notes and the Ownership
     Interest, to fund start-up and transactional expenses of the Trust and to
     pay the balance to the Depositor, as its interests may appear pursuant to
     the Sale and Servicing Agreement;

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

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

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

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

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

                                      7
<PAGE>

         Section 2.4 Appointment of Owner Trustee. Pursuant to the Trust
Agreement, effective as of the date thereof, the Depositor appointed the Owner
Trustee as trustee of the Trust. Pursuant to this Agreement, the Owner Trustee
shall have all the rights, powers and duties set forth herein.

         Section 2.5 Appointment of Delaware Trustee. The Delaware Trustee is
hereby appointed to serve as the trustee of the Trust in the State of Delaware
for the sole and limited purpose of satisfying the requirement of Section 3807
of the Statutory Trust Statute that the Trust have at least one trustee with a
principal place of business in Delaware. It is understood and agreed by the
parties hereto that the Delaware Trustee has none of the duties or liabilities
of the Owner Trustee. The duties of the Delaware Trustee are limited to (a)
accepting legal process served on the Trust in the State of Delaware and (b)
executing and filing any certificates with the Secretary of State that the
Delaware Trustee is required to execute and file pursuant to Section 3811 of
the Statutory Trust Statute. The Delaware Trustee shall provide prompt notice
to the Owner Trustee of its performance of any such acts. The parties to this
Agreement understand and agree that the Delaware Trustee is not entitled to
exercise any powers, nor has the Delaware Trustee any of the duties and
liabilities, of the Owner Trustee. The Delaware Trustee is not liable for the
acts or omissions of the Owner Trustee, the Transferor or the Trust. To the
extent that, at law or in equity, the Delaware Trustee has duties (including
fiduciary duties) and liabilities relating thereto to the Trust, it is hereby
understood and agreed by the other parties that such duties and liabilities
are replaced by the duties and liabilities of the Delaware Trustee expressly
set forth in this Agreement. The Delaware Trustee owes no fiduciary or other
duties to the Trust or the Transferor except as expressly provided for in this
Agreement.

         Section 2.6 Appointment of Co-Trustee.

         (a) The Co-Trustee is hereby appointed to serve as trustee solely in
respect of the Transferred Assets. The Co-Trustee shall not undertake nor have
any of the duties of the Owner Trustee or the Delaware Trustee and shall have
no obligations under this Amended and Restated Trust Agreement other than as
expressly stated in this Section 2.6 and in Section 2.9(a)(ii).

         (b) The compensation of the Co-Trustee will be separately agreed to
between the Master Servicer and the Co-Trustee. The Co-Trustee shall have no
claim against the Owner Trustee, the Delaware Trustee, the Depositor or any of
the Owner Trust Estate or the Trust Estate for the payment of any of its fees
and expenses. The Master Servicer shall indemnify and hold harmless the
Co-Trustee for any loss suffered as a result of acting as Co-Trustee
hereunder.

         (c) The Co-Trustee shall, at all times, be a national banking
association organized and doing business under the laws of a state or the
United States of America, authorized under such laws to exercise corporate
trust powers having aggregate capital surplus and undivided profits of at
least $50,000,000, and subject to supervision or examination by a federal or
state authority, and otherwise acceptable to the Master Servicer. If at any
time the Co-Trustee ceases to be eligible in accordance with this subsection,
the Co-Trustee shall resign immediately in the manner and with the effect
specified in Section 2.6(d). The national banking association serving as
Co-Trustee may have normal banking and trust relationships with the Transferor
and its affiliates.

                                      8
<PAGE>

         (d) The Co-Trustee may at any time resign and be discharged from the
trusts hereby created (1) by giving written notice of resignation to the
Master Servicer and the Owner Trustee, not less than 60 days before the date
specified in the notice when the resignation is to take effect, and (2) upon
acceptance of appointment by a successor co-trustee in accordance with this
Subsection and meeting the qualifications in Section 2.6(c). If no successor
co-trustee shall have been so appointed and have accepted appointment within
60 days after the notice or resignation, the resigning Co-Trustee may petition
any court of competent jurisdiction for the appointment of a successor
co-trustee.

         If at any time (i) the Co-Trustee ceases to be eligible in accordance
with Section 2.6(c) and fails to resign after written request by the Master
Servicer or the Owner Trustee, or (ii) the Co-Trustee becomes incapable of
acting, or is adjudged as bankrupt or insolvent, or a receiver of the
Co-Trustee or of its property is appointed, or any public officer takes charge
of the Co-Trustee or of its property or affairs for the purpose of
rehabilitation, conservation, or liquidation, then the Master Servicer or the
Owner Trustee may remove the Co-Trustee and appoint a successor co-trustee by
written instrument, with copies delivered to the Co-Trustee, the Master
Servicer, the Owner Trustee and the successor co-trustee. Any successor
co-trustee shall be paid pursuant to an agreement with Master Servicer and the
Owner Trust Estate and the Trust Estate shall not be used to satisfy any
obligation to pay the compensation of the successor co-trustee. Any
resignation or removal of the Co-Trustee and appointment of a successor
co-trustee pursuant to this Subsection shall become effective only upon
acceptance of appointment by the successor co-trustee as provided in this
Subsection.

         (e) Any successor co-trustee appointed as provided in Section 2.6(c)
shall execute, acknowledge, and deliver to the Master Servicer, the Owner
Trustee, and to its predecessor co-trustee an instrument accepting its
appointment and thereupon the resignation or removal of the predecessor
co-trustee shall become effective and the successor co-trustee, without
anything further, shall become fully vested with all the rights and
obligations of its predecessor hereunder, with the like effect as if
originally named as co-trustee. The Co-Trustee shall deliver the Transferred
Assets to the successor co-trustee upon the appointment of the successor
co-trustee.

         (f) The Co-Trustee represents and warrants as to itself that it is
duly authorized under applicable law, its charter, and its by-laws to execute
and deliver this Amended and Restated Trust Agreement, and to perform its
obligations under this Amended and Restated Trust Agreement, and that all
corporate action necessary or required therefor has been duly and effectively
taken or obtained and all federal and state governmental consents and
approvals required with respect thereto have been obtained.

         (g) All parties to this Amended and Restated Trust Agreement agree
that in any suit for the enforcement of any right under this Trust Agreement,
or in any suit against the Co-Trustee for any action taken, suffered, or
omitted by it as Co-Trustee, any court may in its discretion require the
filing by any party litigant in the suit of an undertaking to pay the costs of
the suit, and that the court may in its discretion assess reasonable costs,
including reasonable attorneys' fees, against any party litigant in the suit,
having due regard to the merits and good faith of the claims or defenses made
by the party litigant.

                                      9
<PAGE>

         (h) The Co-Trustee may rely on any document believed by it to be
genuine and to have been signed or presented by the proper person.

         (i) Before the Co-Trustee acts or refrains from acting, it may
require an Officer's Certificate or an Opinion of Counsel. The Co-Trustee
shall not be liable for any action it takes or omits to take in good faith in
reliance on an Officer's Certificate or Opinion of Counsel unless other
evidence is specifically required.

         Section 2.7 Capital Contribution of Owner Trust Estate. Pursuant to
the Trust Agreement, as of August 21, 2003, the Depositor conveyed to the
Trust the sum of $1,000. The Depositor hereby sells, assigns, transfers,
conveys and sets over to the Trust, as of the date hereof, one share of its
Class SV-Q Preferred Stock. The Owner Trustee hereby acknowledges receipt in
trust from the Depositor, as of the date hereof, of the foregoing
contributions, which shall constitute the initial Owner Trust Estate and such
cash contribution shall be deposited in the Collection Account. The Depositor
shall pay organizational expenses of the Trust as they may arise or shall,
upon the request of the Owner Trustee, promptly reimburse the Owner Trustee
for any such expenses paid by the Owner Trustee.

         Section 2.8 Declaration of Trust. The Owner Trustee hereby declares
that it will hold the Owner Trust Estate in trust upon and subject to the
conditions set forth herein for the use and benefit of the Transferor, subject
to the obligations of the Trust under the Transaction Documents. It is the
intention of the parties hereto that the Trust constitute a statutory trust
under the Statutory Trust Statute and that this Agreement constitute the
governing instrument of such statutory trust. It is the intention of the
parties hereto that, solely for income and franchise tax purposes, the Trust
shall be treated as a disregarded entity, with the assets of the Trust being
treated as owned by the Transferor as the owner of the Ownership Interest. The
parties agree that, unless otherwise required by appropriate tax authorities,
the Trust will file or cause to be filed annual or other necessary returns,
reports and other forms, if any, consistent with the characterization of the
Trust as provided in the preceding sentence for such tax purposes. Effective
as of the date hereof, the Owner Trustee shall have all rights, powers and
duties set forth herein and in the Statutory Trust Statute with respect to
accomplishing the purposes of the Trust. Together with the Delaware Trustee,
the Owner Trustee has filed the Certificate of Trust with the Secretary of
State.

         Section 2.9 Title to Trust Property.

         (a) Subject to the Indenture, legal title to (i) all of the Owner
Trust Estate (other than the Transferred Assets) shall be vested at all times
in the Trust as a separate legal entity except where applicable law in any
jurisdiction requires title to any part of the Owner Trust Estate to be vested
in a trustee or trustees, in which case title shall be deemed to be vested in
the Owner Trustee, Co-Trustee, a co-owner trustee and/or a separate trustee,
as the case may be, and (ii) all of the Transferred Assets shall be vested at
all times in the Co-Trustee.

         (b) The Transferor shall not have legal title to any part of the
Owner Trust Estate. No transfer by operation of law or otherwise of any
interest of the Transferor shall operate to terminate this Agreement or the
trusts hereunder or entitle any transferee to an accounting or to the transfer
to it of any part of the Owner Trust Estate.

                                      10
<PAGE>

         Section 2.10 Situs of Trust. The Trust will be located and
administered in the State of Delaware. All bank accounts maintained by the
Owner Trustee on behalf of the Trust shall be located in the State of
Delaware, the State of Illinois or the State of New York. The Trust shall not
have any employees; provided, however, that nothing herein shall restrict or
prohibit the Delaware Trustee or the Owner Trustee from having employees
within or without the State of Delaware. Payments will be received by the
Trust only in Delaware or New York, and payments will be made by the Trust
only from Delaware or New York.

         Section 2.11 Representations and Warranties of the Depositor.

         The Depositor hereby represents and warrants to the Owner Trustee,
the Delaware Trustee, the Noteholders and the Indenture Trustee that:

         (a) The Depositor is a corporation duly organized, validly existing
and in good standing under the laws of the State of Delaware and has the
corporate power to own its assets and to transact the business in which it is
currently engaged. The Depositor is duly qualified to do business as a foreign
corporation and is in good standing in each jurisdiction in which the
character of the business transacted by it or properties owned or leased by it
require such qualification and in which the failure to so qualify would have a
material adverse effect on the business, properties, assets or condition
(financial or other) of the Depositor;

         (b) The Depositor has the power and authority to make, execute,
deliver and perform its obligations under this Agreement and to perform its
obligations with respect to all of the transactions contemplated under this
Agreement, and has taken all necessary corporate action to authorize the
execution, delivery and performance of its obligations under this Agreement.
When executed and delivered, this Agreement will constitute the legal, valid
and binding obligation of the Depositor enforceable in accordance with its
terms, except as enforcement of such terms may be limited by bankruptcy,
insolvency or similar laws affecting the enforcement of creditors' rights
generally and by the availability of equitable remedies (whether in a
proceeding at law or in equity);

         (c) The Depositor is not required to obtain the consent of any other
Person or any consent, license, approval or authorization from, or
registration or declaration with, any governmental authority, bureau or agency
in connection with the execution, delivery, performance, validity or
enforceability of this Agreement, except for such consents, licenses,
approvals or authorizations, or registrations or declarations, as shall have
been obtained or filed, as the case may be;

         (d) The execution and delivery of this Agreement and the performance
of the transactions contemplated hereby by the Depositor will not violate any
provision of any existing law or regulation or any order or decree of any
court applicable to the Depositor or any provision of the Certificate of
Incorporation or Bylaws of the Depositor, or constitute a material breach of
any mortgage, indenture, contract or other agreement to which the Depositor is
a party or by which the Depositor may be bound; and

         (e) No litigation or administrative proceeding of or before any
court, tribunal or governmental body is currently pending, or to the knowledge
of the Depositor threatened,

                                      11
<PAGE>

against the Depositor or any of its properties or with respect to this
Agreement which in the opinion of the Depositor has a reasonable likelihood of
resulting in a material adverse effect on the transactions contemplated by
this Agreement.

         Section 2.12 Federal Income Tax Allocations. 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 to the Transferor.

                                      12
<PAGE>

                                 ARTICLE III

          OWNERSHIP INTEREST AND TRANSFERS OF THE OWNERSHIP INTEREST

         Section 3.1 Initial Ownership. The Transferor is the sole beneficial
owner of the Trust.

         Section 3.2 The Ownership Interest. The Ownership Interest (as
defined below) shall be uncertificated and shall represent the entire
undivided beneficial ownership interest in the Owner Trust Estate, subject to
the debt represented by the Notes (the "Ownership Interest"). The Ownership
Interest may be assigned by the Transferor as provided in Section 3.13.

         Upon the completion of a transfer in accordance with the terms and
conditions of this Article III, a transferee of the Ownership Interest shall
become the Transferor, and shall be entitled to the rights and subject to the
obligations of the Transferor hereunder, upon such transferee's acceptance of
the Ownership Interest duly registered in such transferee's name pursuant to
Section 3.4 below.

         Section 3.3 [Reserved].

         Section 3.4 Registration of Transfer and Exchange of Ownership
Interest. The Owner Trustee hereby appoints Bank One, National Association as
Registrar under this Agreement. The Registrar shall keep or cause to be kept,
at the office or agency maintained pursuant to Section 3.8, a Register in
which, subject to such reasonable regulations as it may prescribe, the
Register shall provide for the registration of the Ownership Interest and of
transfer and exchange of the Ownership Interest as herein provided. The
Registrar, subject to Section 3.13 hereof, on behalf of the Trust shall note
on the Register the transfer of the Ownership Interest.

         Section 3.5 [Reserved].

         Section 3.6 Persons Deemed Transferors. Prior to due assignment of
the Ownership Interest for registration of transfer, the Depositor, the Owner
Trustee, the Delaware Trustee, the Indenture Trustee and the Registrar may
treat the Person in whose name the Ownership Interest shall be registered in
the Register as the owner thereof for the purpose of receiving distributions
pursuant to Section 5.2 hereof and for all other purposes whatsoever, and none
of the Depositor, the Owner Trustee, the Delaware Trustee, the Indenture
Trustee or the Registrar shall be bound by any notice to the contrary.

         Section 3.7 [Reserved]

         Section 3.8 Maintenance of Office or Agency. The Indenture Trustee
shall maintain an office or offices or agency or agencies (initially, the
Corporate Trust Office of the Indenture Trustee) where instructions for the
transfer of the Ownership Interest may be delivered for registration of
transfer or exchange pursuant to Section 3.4 and where notices and demands to
or upon the Registrar in respect of the Ownership Interest and the Transaction
Documents may be served. The Indenture Trustee shall give prompt written
notice to the Owner Trustee, the Delaware Trustee and the Transferor of any
change in the location of the Register or any such office or agency.

                                      13
<PAGE>

         Section 3.9 Appointment of Paying Agent. The Owner Trustee hereby
appoints the Indenture Trustee as Paying Agent under this Agreement. The
Paying Agent shall make distributions to the Transferor from the Collection
Account pursuant to Section 5.2 hereof and Section 5.01 of the Sale and
Servicing Agreement 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 Collection Account for the purpose of making the distributions
referred to above. In the event that the Indenture Trustee shall no longer be
the Paying Agent hereunder, the Owner Trustee shall, pursuant to the direction
of the Depositor, appoint a successor to act as Paying Agent (which (x) shall
at all times be a corporation duly incorporated and validly existing under the
laws of the United States of America or any state thereof, authorized under
such laws to exercise corporate trust powers and subject to supervision or
examination by federal or state authorities and (y) shall not be entitled to
compensation from the Trust Estate). The Owner Trustee shall cause such
successor Paying Agent or any additional Paying Agent appointed by the Owner
Trustee to execute and deliver to the Owner Trustee an instrument in which
such successor Paying Agent or additional Paying Agent shall agree with the
Owner Trustee that as Paying Agent, such successor Paying Agent or additional
Paying Agent will hold all sums, if any, held by it for payment to the
Transferor in trust for the benefit of the Transferor until such sums shall be
paid to the Transferor. The Paying Agent shall return all unclaimed funds to
the Owner Trustee, and upon removal of a Paying Agent, such Paying Agent shall
also return all funds in its possession to the Owner Trustee. Any reference in
this Agreement to the Paying Agent shall include any co-paying agent unless
the context requires otherwise.

         Section 3.10 [Reserved].

         Section 3.11 [Reserved].

         Section 3.12 [Reserved].

         Section 3.13 Restrictions on Transfers of Ownership Interest. To the
fullest extent permitted by applicable law, the Ownership Interest shall not
be sold, pledged, transferred or assigned, except as provided below.

         (a) Unless the Prospective Transferor furnishes an opinion of counsel
meeting the requirements specified in Section 3.13(c)(ii) hereof, the
Ownership Interest 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 and subject to
Section 4975(e)(1) of the Code, 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.

         (b) Each prospective owner of the Ownership Interest, other than HFC
or an affiliate of HFC, shall represent and warrant, in writing, to the Owner
Trustee and the 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"), and is

                                      14
<PAGE>

     aware that the seller of such Ownership Interest may be relying on the
     exemption from the registration requirements of the Securities Act
     provided by Rule 144A and is acquiring such Ownership Interest for its
     own account or for the account of one or more qualified institutional
     buyers for whom it is authorized to act, (B) an "accredited investor" as
     defined in Rule 501(a) under the Securities Act , or (C) 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 1940 Act, as amended
     (including, but not limited to, HFC or the Transferor).

          (ii) Such Person understands that such Ownership Interest has 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," (B)
     "an accredited investor" or (C) a Person involved in the organization or
     operation of the Trust or an affiliate of such Person, in each case in a
     transaction meeting the requirements of Rule 144A under the Securities
     Act or that is otherwise exempt from registration under the Securities
     Act and in accordance with any applicable securities laws of any state of
     the United States.

          (iii) Such Person shall comply with the provisions of Section
     3.13(c), as applicable, relating to the ERISA restrictions with respect
     to the acceptance or acquisition of such Ownership Interest .

         (c) Each Prospective Transferor, other than the initial Transferor or
an affiliate of the initial Transferor, shall either:

          (i) represent and warrant, in writing, to the Owner Trustee and the
     Registrar and any of their respective successors, in accordance with
     Exhibit B hereto, that the Prospective Transferor is not (A) an "employee
     benefit plan" within the meaning of Section 3(3) of ERISA that is subject
     to Title I of ERISA, (B) a plan within the meaning of and subject to
     Section 4975(e)(1) of the Code (any such plan or employee benefit plan, a
     "Plan") or (C) 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 or otherwise under ERISA,
     and is not directly or indirectly purchasing such Ownership Interest on
     behalf of, as investment manager of, as named fiduciary of, as trustee
     of, or with assets of a Plan; or

          (ii) furnish to the Owner Trustee and the Registrar and any of their
     respective successors an opinion of counsel acceptable to such persons
     that (A) the proposed issuance or transfer of such Ownership Interest to
     such Prospective Transferor will not cause any assets of the Trust to be
     deemed assets of a Plan, and (B) the proposed holding or transfer of such
     Ownership Interest will not cause the Owner Trustee or the Registrar or
     any of their respective successors to be a fiduciary of a Plan within the
     meaning of Section 3(21) of ERISA and will not give rise to a transaction
     described in Section 406 of ERISA or Section 4975(c)(1) of the Code for
     which a statutory, regulatory or administrative exemption is unavailable.

                                      15
<PAGE>

         (d) Neither the Ownership Interest nor any beneficial ownership
interest therein may be transferred to HFC or any Seller, or to any non-United
States Person as defined in Section 7701(a)(30) of the Code, and any purported
transfer in violation of this Section 3.13(d) shall be null and void ab
initio.

         (e) The Prospective Transferor, other than the initial Transferor or
an affiliate of the initial Transferor, shall obtain an Opinion of Counsel to
the effect that, as a matter of federal income tax law, such Prospective
Transferor is permitted to accept the transfer of the Ownership Interest.

         (f) The Ownership Interest may not be pledged or transferred without
delivery to the Registrar of an Opinion of Counsel to the effect that such
transfer would not jeopardize the tax treatment of the Trust, would not
subject the Trust to an entity-level tax, and would not jeopardize the status
of the Notes as debt for all purposes.

         (g) No pledge or transfer of the Ownership Interest shall be
effective unless such purchase or transfer (i) results in the Ownership
Interest being owned by a single beneficial owner and (ii) is accompanied by
an opinion of counsel satisfactory to the Owner Trustee, which Opinion of
Counsel shall not be an expense of the Trust, the Owner Trustee, the Delaware
Trustee, the Co-Trustee, the Registrar or the Master Servicer, to the effect
such pledge or transfer will not cause the Trust to be treated for federal
income tax purposes as a taxable mortgage pool, association or a publicly
traded partnership taxable as a corporation.

                                      16
<PAGE>

                                  ARTICLE IV

                           ACTIONS BY OWNER TRUSTEE

         Section 4.1 Prior Notice to the Transferor and the Indenture Trustee
with Respect to Certain Matters. With respect to the following matters, the
Owner Trustee shall not take action, and neither the Transferor nor the
Indenture Trustee shall direct the Owner Trustee to take any action, unless
(i) the Indenture Trustee has provided written consent to the Owner Trustee,
(ii) at least 30 days before the taking of such action, the Owner Trustee
shall have notified the Transferor and the Indenture Trustee in writing of the
proposed action and neither the Transferor nor the Indenture Trustee shall
have notified the Owner Trustee in writing prior to the 30th day after such
notice is given that the Transferor has withheld consent or the Transferor or
the Indenture Trustee has provided alternative direction, and (iii) in the
case of clauses (b), (c), (d), (g), (h), (i), (j), (k), (l) and (o), the
Rating Agencies have confirmed that the taking of the proposed action would
not result in a withdrawal or a reduction of the then-current ratings of the
Notes.

         (a) the initiation of any claim or lawsuit by the Trust (except
claims or lawsuits brought in connection with the collection of the Home
Equity Loans) 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 Home Equity Loans);

         (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 Statutory
Trust Statute);

         (c) the amendment or other change to this Agreement or any
Transaction Document in circumstances where the consent of any Noteholder is
required;

         (d) the amendment or other change to this Agreement or any
Transaction Document in circumstances where the consent of any Noteholder is
not required and such amendment materially adversely affects the interest of
the Transferor;

         (e) the appointment pursuant to the Indenture of a successor Note
Registrar, Paying Agent or Indenture Trustee, or the consent to the assignment
by the Note Registrar, Paying Agent or Indenture Trustee of its obligations
under the Indenture;

         (f) the consent to the calling or waiver of any default of any
Transaction Document;

         (g) the consent to the assignment by the Indenture Trustee of its
obligations under any Transaction Document;

         (h) except as provided in Article IX hereof, dissolve, terminate or
liquidate the Trust in whole or in part;

         (i) merge or consolidate the Trust with or into any other entity, or,
except as contemplated by the Sale and Servicing Agreement or the Indenture,
convey or transfer all or substantially all of the Trust's assets to any other
entity;

                                      17
<PAGE>

         (j) cause the Trust to incur, assume or guaranty any indebtedness
other than as permitted by the Transaction Documents, as set forth in this
Agreement;

         (k) do any act that conflicts with any other Transaction Document;

         (l) do any act which would make it impossible to carry on the
ordinary business of the Trust;

         (m) confess a judgment against the Trust;

         (n) possess Trust assets, or assign the Trust's right to property,
for other than a Trust purpose; or

         (o) change the Trust's purpose and powers from those set forth in
this Agreement.

         In addition, except as specifically contemplated by the Transaction
Documents, the Trust shall not commingle its assets with those of any other
entity. The Trust shall maintain its financial and accounting books and
records separate from those of any other entity. Except as expressly set forth
herein, the Trust shall pay its indebtedness, operating expenses and other
liabilities from its own funds, and the Trust shall not pay the indebtedness,
operating expenses and liabilities of any other Person. The Trust shall
maintain appropriate minutes or other records of all appropriate actions and
shall maintain its office separate from the offices of the Depositor or HFC,
and any of their respective affiliates. This Agreement and the Transaction
Documents shall be the only agreements among the parties hereto with respect
to the creation, operation and termination of the Trust. For accounting
purposes, the Trust shall be treated as an entity separate and distinct from
the Transferor. The pricing and other material terms of all transactions and
agreements to which the Trust is a party shall be intrinsically fair to all
parties thereto.

         The Owner Trustee shall not have the power, except upon the written
direction of the Transferor or the Indenture Trustee, and to the extent
otherwise consistent with the Transaction Documents, to (i) remove or replace
the Master Servicer or the Indenture Trustee, (ii) institute proceedings to
have the Trust declared or adjudicated a bankrupt or insolvent, (iii) consent
to the institution of bankruptcy or insolvency proceedings against the Trust,
(iv) file a petition or consent to a petition seeking reorganization or relief
on behalf of the Trust under any applicable federal or state law relating to
bankruptcy, (v) consent to the appointment of a receiver, liquidator,
assignee, trustee, sequestrator (or any similar official) of the Trust or a
substantial portion of the property of the Trust, (vi) make any assignment for
the benefit of the Trust's creditors, (vii) cause the Trust to admit in
writing its inability to pay its debts generally as they become due, or (viii)
take any action, or cause the Trust to take any action, in furtherance of any
of the foregoing (any of the above, a "Bankruptcy Action"). So long as the
Indenture remains in effect, the Transferor shall not have the power to take,
and shall not take, any Bankruptcy Action with respect to the Trust or direct
the Owner Trustee to take any Bankruptcy Action with respect to the Trust.

         Section 4.2 [Reserved].

                                      18
<PAGE>

         Section 4.3 Action by Transferor with Respect to Bankruptcy. To the
fullest extent permitted by applicable law, the Owner Trustee shall not have
the power to commence a voluntary proceeding in bankruptcy relating to the
Trust without the prior consent and approval of (i) the Transferor; (ii) the
Owner Trustee; and (iii) the Indenture Trustee, and the delivery to the Owner
Trustee by the Transferor of a certificate certifying that such Transferor
reasonably believes that the Trust is insolvent. The terms of this Section 4.3
shall survive for one year and one day following the termination of this
Agreement.

         Section 4.4 Restrictions on Transferor's Power. The Transferor shall
not direct the Owner Trustee to take or refrain from taking any action if such
action or inaction would be contrary to any obligation of the Trust or the
Owner Trustee under this Agreement or any of the Transaction Documents or
would be contrary to Section 2.3 hereof, nor shall the Owner Trustee be
obligated to follow any such direction, if given.

                                      19
<PAGE>

                                  ARTICLE V

                  APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

         Section 5.1 Establishment of Trust Account. The Owner Trustee shall
cause the Indenture Trustee to establish and maintain with the Indenture
Trustee for the benefit of the Trust one or more Eligible Accounts in
accordance with the Indenture.

         Section 5.2 Application of Trust Funds.

         (a) On each Payment Date, the Paying Agent shall make the
distributions and payments set forth in Section 5.01 of the Sale and Servicing
Agreement from amounts on deposit in the Collection Account.

         (b) On or before the third Business Day following each Payment Date,
the Paying Agent shall send to DTC the statement provided to the Paying Agent
by the Indenture Trustee pursuant to Section 5.03 of the Sale and Servicing
Agreement with respect to such Payment Date.

         (c) In the event that any withholding tax is imposed on the Trust's
payment (or allocations of income) to the Transferor, such tax shall reduce
the amount otherwise distributable to the Transferor in accordance with this
Section 5.2. The Paying Agent is hereby authorized and directed to retain from
amounts otherwise distributable to the Transferor sufficient funds for the
payment of any tax that is legally owed by the Trust (but such authorization
shall not prevent the Paying 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 the Transferor shall be treated as cash distributed to the
Transferor 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 (such as a distribution to a
non-U.S. Transferor), the Paying Agent may in its sole discretion withhold
such amounts in accordance with this paragraph (c). In the event that the
Transferor wishes to apply for a refund of any such withholding tax, the Owner
Trustee and the Paying Agent shall reasonably cooperate with the Transferor in
making such claim so long as the Transferor agrees to reimburse the Owner
Trustee and the Paying Agent for any out-of-pocket expenses incurred.

         Section 5.3 Method of Payment. Distributions required to be made to
the Transferor on any Payment Date shall be made to the Transferor of record
on the preceding Record Date in the manner set forth in Section 5.01 of the
Sale and Servicing Agreement.

         Section 5.4 [Reserved].

         Section 5.5 Accounting and Reports to the Transferor, the Internal
Revenue Service and Others. The Owner Trustee shall deliver (or cause to be
delivered) to the Transferor such information, reports or statements as may be
required by the Code and applicable Treasury Regulations and as may be
required to enable the Transferor to prepare its respective federal and state
income tax returns. Consistent with the Trust's characterization as a
disregarded entity within the meaning of Treasury regulations Section
301.7701-2(a), no federal income tax return

                                      20
<PAGE>

shall be filed on behalf of the Trust unless either (a) the Trust or the
Transferor shall receive an Opinion of Counsel that, based on a change in
applicable law occurring after the date hereof, the Code requires such a
filing or (b) the Internal Revenue Service shall determine that the Trust is
required to file such a return. The Master Servicer shall prepare or shall
cause to be prepared any tax returns required to be filed by the Trust and
shall remit such returns to the Transferor at least five days before such
returns are due to be filed. Such returns shall be filed by, or at the
direction of, the Master Servicer with the appropriate tax authorities. In no
event shall the Transferor be liable for any liabilities, costs or expenses of
the Trust arising out of the application of any tax law, including federal,
state, foreign or local income or excise taxes or any other tax imposed on or
measured by income (or any interest, penalty or addition with respect thereto
or arising from a failure to comply therewith), except for any such liability,
cost or expense attributable to the Transferor's breach of its obligations
under this Agreement.

         Section 5.6 Signature on Returns.

         The Owner Trustee shall sign on behalf of the Trust the tax returns
of the Trust, if any, unless applicable law requires the Transferor to sign
such documents, in which case such documents shall be signed by the
Transferor.

                                      21
<PAGE>

                                  ARTICLE VI

                     AUTHORITY AND DUTIES OF OWNER TRUSTEE

         Section 6.1 General Authority. The Owner Trustee is authorized and
directed to execute and deliver or cause to be executed and delivered the
Notes, and the Transaction 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 Transaction Documents to which the Trust is to be a party and any other
agreement or instrument described in Article III, in each case, in such form
as the Owner Trustee shall approve, as evidenced conclusively by the Owner
Trustee's execution thereof, and, on behalf of the Trust, to direct the
Indenture Trustee to authenticate and deliver each Class of Notes in its
respective Initial Note Principal Amount. 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 Transaction Documents.

         Section 6.2 General Duties. It shall be the duty of the Owner Trustee
to discharge (or cause to be discharged) all of its responsibilities pursuant
to the terms of this Agreement and the Transaction Documents to which the
Trust is a party and to administer the Trust in the interest of the
Transferor, subject to the Transaction 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 Transaction Documents to the extent the Master Servicer has
agreed in the Sale and Servicing Agreement to perform any act or to discharge
any duty of the Owner Trustee hereunder or under any Transaction Document, and
the Owner Trustee shall not be held liable for the default or failure of the
Master Servicer to carry out its respective obligations under the Sale and
Servicing Agreement.

         Section 6.3 Action upon Instruction.

         (a) Subject to Article IV herein and in accordance with the terms of
the Transaction Documents, the Transferor may by written instruction direct
the Owner Trustee in the management of the Trust but only to the extent
consistent with the limited purpose of the Trust. Such direction may be
exercised at any time by written instruction of the Transferor pursuant to
Article IV.

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

         (c) Whenever the Owner Trustee is unable to decide between
alternative courses of action permitted or required by the terms of this
Agreement or under any Transaction Document, the Owner Trustee shall promptly
give notice (in such form as shall be appropriate under the circumstances) to
the Transferor requesting instruction from the Transferor as to the course of
action to be adopted, and to the extent the Owner Trustee acts in good faith
in accordance with any written instruction of the Transferor received, the
Owner Trustee shall not be liable on account of such action to any Person. If
the Owner Trustee shall not have received

                                      22
<PAGE>

appropriate instruction within 10 days of such notice (or within such shorter
period of time as reasonably may be specified in such notice or may be
necessary under the circumstances) it may, but shall be under no duty to, take
or refrain from taking such action, not inconsistent with this Agreement or
the Transaction Documents, as it shall deem to be in the best interest of the
Transferor, and shall have no liability to any Person for such action or
inaction.

         (d) In the event that the Owner Trustee is unsure as to the
application of any provision of this Agreement or any Transaction 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 provides no direction to the Owner Trustee or is silent or is
incomplete as to the course of action that the Owner Trustee is required to
take with respect to a particular set of facts, the Owner Trustee may give
notice (in such form as shall be appropriate under the circumstances) to the
Transferor requesting instruction and, to the extent that the Owner Trustee
acts or refrains from acting in good faith in accordance with any such
instruction received from the Transferor, the Owner Trustee shall not be
liable, on account of such action or inaction, to any Person. If the Owner
Trustee shall not have received appropriate instruction within 10 days of such
notice (or within such shorter period of time as reasonably may be specified
in such notice or may be necessary under the circumstances) it may, but shall
be under no duty to, take or refrain from taking such action, not inconsistent
with this Agreement or the Transaction Documents, as it shall deem to be in
the best interest of the Transferor, and shall have no liability to any Person
for such action or inaction.

         Section 6.4 No Duties Except as Specified in this Agreement, the
Transaction Documents or in Instructions. The Owner Trustee shall not have any
duty or obligation to manage, make any payment with respect to, register,
record, sell, dispose of, or otherwise deal with the Owner Trust Estate, or to
otherwise take or refrain from taking any action under, or in connection with,
any document contemplated hereby to which the Owner Trustee or the Trust is a
party, except as expressly provided by the terms of this Agreement, any
Transaction Document or in any document or written instruction received by the
Owner Trustee pursuant to Section 6.3; and no implied duties or obligations
shall be read into this Agreement or any Transaction Document against the
Owner Trustee. The Owner Trustee shall have no responsibility for filing any
financing or continuation statement in any public office at anytime or to
otherwise perfect or maintain the perfection of any security interest or lien
granted to it hereunder or to prepare or file any Securities and Exchange
Commission filing for the Trust or to record this Agreement or any Transaction
Document. The Owner Trustee nevertheless agrees that it will, at its own cost
and expense, promptly take all action as may be necessary to discharge any
liens on any part of the Owner Trust Estate that result from actions by, or
claims against, the Owner Trustee in its individual capacity that are not
related to the ownership or the administration of the Owner Trust Estate.

         Section 6.5 No Action Except Under Specified Documents or
Instructions. The Owner Trustee shall not manage, control, use, sell, dispose
of or otherwise deal with any part of the Owner Trust Estate except (i) in
accordance with the powers granted to and the authority conferred upon the
Owner Trustee pursuant to this Agreement, (ii) in accordance with the
Transaction Documents and (iii) in accordance with any document or instruction
delivered to the Owner Trustee pursuant to Section 6.3 above. The Owner
Trustee shall not be required to take any action under this Agreement if the
Owner Trustee shall reasonably determine or shall have

                                      23
<PAGE>

been advised by counsel that such action is contrary to the terms of this
Agreement or is otherwise contrary to law.

         Section 6.6 Restrictions. The Owner Trustee shall not take any action
(a) that is inconsistent with the purposes of the Trust set forth in Section
2.3 hereof or (b) that, to the actual knowledge of the Owner Trustee, would
result in the Trust's becoming taxable as a corporation for Federal income tax
purposes. The Transferor shall not direct the Owner Trustee to take action
that would violate the provisions of this Section 6.6.

                                      24
<PAGE>

                                 ARTICLE VII

             CONCERNING THE OWNER TRUSTEE AND THE DELAWARE TRUSTEE

         Section 7.1 Acceptance of Trusts and Duties. Each of the Owner
Trustee and the Delaware 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 Transaction Documents. Each of the Owner
Trustee and the Delaware Trustee also agrees to disburse all moneys actually
received by it constituting part of the Owner Trust Estate upon the terms of
the Transaction Documents and this Agreement. Neither the Owner Trustee nor
the Delaware Trustee shall be answerable or accountable hereunder or under any
Transaction Document under any circumstances, except (i) for its own willful
misconduct, bad faith or gross negligence or (ii) in the case of the
inaccuracy of any representation or warranty contained in Section 7.3 below
expressly made by the Owner Trustee or the Delaware Trustee, 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 Delaware Trustee shall be
liable for any error of judgment made by a responsible officer of the Owner
Trustee or the Delaware Trustee, as applicable;

         (b) no provision of this Agreement or any Transaction Document shall
require the Owner Trustee or the Delaware Trustee to expend or risk funds or
otherwise incur any financial liability in the performance of any of its
rights or powers hereunder or under any Transaction Document if the Owner
Trustee or the Delaware Trustee, as the case may be, 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;

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

         (d) neither the Owner Trustee nor the Delaware Trustee 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 Owner Trust Estate
or for or in respect of the validity or sufficiency of the Transaction
Documents, other than the genuineness of the signature and countersignature of
the Owner Trustee on the certificate of authentication on the Ownership
Interest, and the Owner Trustee and the Delaware Trustee shall in no event
assume or incur any liability, duty, or obligation to any Noteholder or the
Transferor other than as expressly provided for herein and in the Transaction
Documents;

         (e) neither the Owner Trustee nor the Delaware Trustee shall be
liable for the default or misconduct of the Indenture Trustee or the Master
Servicer under any of the Transaction Documents or otherwise and neither the
Owner Trustee nor the Delaware Trustee shall have any obligation or liability
to perform the obligations of the Trust under this Agreement or the
Transaction Documents that are required to be performed by the Indenture
Trustee under

                                      25
<PAGE>

the Indenture, the Master Servicer under the Sale and Servicing Agreement, or
the Registrar or any Paying Agent hereunder;

         (f) neither the Owner Trustee nor the Delaware Trustee 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 Transaction
Document, at the request, order or direction of the Transferor, unless the
Transferor has offered to the Owner Trustee or the Delaware Trustee, as the
case may be, security or indemnity satisfactory to it against the costs,
expenses and liabilities that may be incurred by the Owner Trustee or the
Delaware Trustee, as the case may be, therein or thereby. The right of the
Owner Trustee or the Delaware Trustee, as the case may be, to perform any
discretionary act enumerated in this Agreement or in any Transaction Document
shall not be construed as a duty, and the Owner Trustee and the Delaware
Trustee answerable for other than their gross negligence or willful misconduct
in the performance of any such act;

         (g) notwithstanding anything contained herein to the contrary, the
Delaware Trustee will not be required to take any action in any jurisdiction
other than in the State of Delaware if the taking of such action (i) requires
the registration with, licensing by or the taking of any other similar action
in respect of, any state or other governmental authority or agency of any
jurisdiction other than the State of Delaware by or with respect to the
Delaware Trustee (other than any registration, licensing or taking of any
other similar action that at the time of such action is in effect or has been
taken); (ii) results in any fee, tax or other governmental charge under the
laws of any jurisdiction or any political subdivisions thereof in existence on
the date hereof other than the State of Delaware becoming payable by the
Delaware Trustee; or (iii) subjects the Delaware Trustee to personal
jurisdiction in any jurisdiction other than the State of Delaware for causes
of action arising from acts unrelated to the consummation of the transactions
by the Delaware Trustee contemplated hereby. The Delaware Trustee will be
entitled to obtain advice of counsel (which advice will be an expense of the
Transferor) to determine whether any action required to be taken pursuant to
the Agreement results in the consequences described in clauses (i), (ii) and
(iii) of the preceding sentence. If said counsel advises the Delaware Trustee
that such action will result in such consequences, the Transferor will appoint
an additional trustee pursuant to Section 10.5 hereof to proceed with such
action; and

         (h) neither the Owner Trustee nor the Delaware Trustee shall be
liable with respect to any action taken or omitted to be taken by it in
accordance with the instructions of the Depositor or any Owner to the extent
such action or direction is permitted by the Transaction Documents.

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

                                      26
<PAGE>

         Section 7.2 Furnishing of Documents. The Owner Trustee shall furnish
(a) to the Transferor promptly upon receipt of a written request therefor,
duplicates or copies of all reports, notices, requests, demands, certificates,
financial statements and any other instruments furnished to the Owner Trustee
under the Transaction Documents and (b) to Noteholders promptly upon written
request therefor, copies of the Sale and Servicing Agreement and this
Agreement.

         Section 7.3 Representations and Warranties.

         (a) The Owner Trustee hereby represents and warrants to the
Depositor, for the benefit of the Transferor, the Noteholders and the
Indenture Trustee that:

          (i) It is a New York banking corporation duly organized and validly
     existing in good standing under the laws 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 law, governmental rule or regulation governing the
     banking or trust powers of the Owner Trustee or any judgment or order
     binding on it, or constitute any default under its charter documents or
     by-laws or any indenture, mortgage, contract, agreement or instrument to
     which it is a party or by which any of its properties may be bound;

          (iv) The execution, delivery, authentication and performance by the
     Owner Trustee of this Agreement will not require the authorization,
     consent or approval of, the giving of notice to, the filing or
     registration with, or the taking of any other action with respect to, any
     governmental authority or agency;

          (v) This Agreement has been duly authorized, executed and delivered
     by the Owner Trustee and constitutes a valid, legal and binding
     obligation of the Owner Trustee, enforceable against it in accordance
     with the terms hereof, subject to applicable bankruptcy, insolvency,
     reorganization, moratorium and other laws affecting the enforcement of
     creditors' rights generally and to general principles of equity,
     regardless of whether such enforcement is considered in a proceeding in
     equity or at law;

          (vi) The Owner Trustee is not in default with respect to any order
     or decree of any court or any order, regulation or demand of any federal,
     state, municipal or governmental agency, which default might have
     consequences that would materially and adversely affect the condition
     (financial or other) or operations of the Owner Trustee or its properties
     or might have consequences that would materially adversely affect its
     performance hereunder; and

                                      27
<PAGE>

          (vii) No litigation is pending or, to the best of the Owner
     Trustee's knowledge, threatened against the Owner Trustee which would
     prohibit its entering into this Agreement or performing its obligations
     under this Agreement.

         (b) The Delaware Trustee hereby represents and warrants to the
Depositor, for the benefit of the Transferor, the Noteholders and the
Indenture Trustee that:

          (i) It is a Delaware 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 law, governmental rule or regulation governing the
     banking or trust powers of the Delaware Trustee or any judgment or order
     binding on it, or constitute any default under its charter documents or
     by-laws or any indenture, mortgage, contract, agreement or instrument to
     which it is a party or by which any of its properties may be bound;

          (iv) The execution, delivery, authentication and performance by the
     Delaware Trustee of this Agreement will not require the authorization,
     consent or approval of, the giving of notice to, the filing or
     registration with, or the taking of any other action with respect to, any
     governmental authority or agency;

          (v) This Agreement has been duly authorized, executed and delivered
     by the Delaware Trustee and constitutes a valid, legal and binding
     obligation of the Delaware Trustee, enforceable against it in accordance
     with the terms hereof, subject to applicable bankruptcy, insolvency,
     reorganization, moratorium and other laws affecting the enforcement of
     creditors' rights generally and to general principles of equity,
     regardless of whether such enforcement is considered in a proceeding in
     equity or at law;

          (vi) The Delaware Trustee is not in default with respect to any
     order or decree of any court or any order, regulation or demand of any
     federal, state, municipal or governmental agency, which default might
     have consequences that would materially and adversely affect the
     condition (financial or other) or operations of the Delaware Trustee or
     its properties or might have consequences that would materially adversely
     affect its performance hereunder; and

          (vii) No litigation is pending or, to the best of the Delaware
     Trustee's knowledge, threatened against the Delaware Trustee which would
     prohibit its entering into this Agreement or performing its obligations
     under this Agreement.

         Section 7.4 Reliance; Advice of Counsel.

                                      28
<PAGE>

         (a) Neither the Owner Trustee nor the Delaware Trustee shall incur
any 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. Each of the Owner Trustee and the
Delaware Trustee may accept a certified copy of a resolution of the board of
directors or other governing body of any corporate party as conclusive
evidence that such resolution has been duly adopted by such body and that the
same is in full force and effect. As to any fact or matter the method of the
determination of which is not specifically prescribed herein, each of the
Owner Trustee and the Delaware Trustee may for all purposes hereof rely on a
certificate, signed by the president or any vice president or by the treasurer
or other authorized officer of the relevant party, as to such fact or matter
and such certificate shall constitute full protection to each of the Owner
Trustee and the Delaware Trustee for any action taken or omitted to be taken
by it in good faith in reliance thereon.

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

         Section 7.5 Not Acting in Individual Capacity. Except as provided in
this Article VII, in accepting the trusts hereby created, The Bank of New York
acts solely as Owner Trustee hereunder, and The Bank of New York (Delaware)
acts solely as Delaware Trustee hereunder, and not in their individual
capacities, and all Persons having any claim against the Owner Trustee or the
Delaware Trustee by reason of the transactions contemplated by this Agreement
or any Transaction Document shall look only to the Owner Trust Estate for
payment or satisfaction thereof.

         Section 7.6 Owner Trustee Nor Delaware Trustee Liable for the
Ownership Interest or the Home Equity Loans. The recitals contained herein and
in the Ownership Interest shall be taken as the statements of the Depositor,
and neither the Owner Trustee nor the Delaware Trustee assumes any
responsibility for the correctness thereof. Neither the Owner Trustee nor the
Delaware Trustee makes any representations as to the validity or sufficiency
of this Agreement, of any Transaction Document or of the Ownership Interest
(other than as specified in Section 7.3 hereof) or the Notes, or of any Home
Equity Loans or related documents. Neither the Owner Trustee nor the Delaware
Trustee shall at any time have any responsibility or liability for or with
respect to the legality, validity and enforceability of any Home Equity Loan,
or the perfection and priority of any security interest created by any Home
Equity Loan or the maintenance of any such perfection and priority, or for or
with respect to the sufficiency of the Owner Trust Estate or its ability to
generate the payments to be distributed to the Transferor under this Agreement
or to

                                      29
<PAGE>

the Noteholders under the Indenture, including, without limitation: the
existence, condition and ownership of any Mortgaged Property; the existence
and enforceability of any insurance thereon; the existence and contents of any
Home Equity Loan on any computer or other record thereof; the validity of the
assignment of any Home Equity Loan to the Trust or of any intervening
assignment; the completeness of any Home Equity Loan; the performance or
enforcement of any Home Equity Loan; the compliance by the Depositor or the
Master Servicer with any warranty or representation made under any Transaction
Document or in any related document or the accuracy of any such warranty or
representation or any action of the Depositor, the Indenture Trustee or the
Master Servicer or any subservicer taken in the name of the Owner Trustee or
the Delaware Trustee.

         Section 7.7 Owner Trustee and Delaware Trustee May Own the Ownership
Interest and the Notes. The Bank of New York and The Bank of New York
(Delaware) in their individual or any other capacities may become the owner or
pledgee of the Ownership Interest or the Notes and may deal with the
Depositor, the Indenture Trustee and the Master Servicer in banking
transactions with the same rights as they would have if they were not the
Owner Trustee and Delaware Trustee, respectively.

         Section 7.8 Licenses. The Owner Trustee shall cause the Trust to use
its best efforts to obtain and maintain the effectiveness of any licenses
required in connection with this Agreement and the Transaction Documents and
the transactions contemplated hereby and thereby until such time as the Trust
shall terminate in accordance with the terms hereof.

                                      30
<PAGE>

                                 ARTICLE VIII

              COMPENSATION OF OWNER TRUSTEE AND DELAWARE TRUSTEE

         Section 8.1 Fees and Expenses. Each of the Owner Trustee and the
Delaware Trustee shall receive as compensation for its services hereunder such
fees as have been separately agreed upon before the date hereof between HFC
and each of the Owner Trustee and the Delaware Trustee, and the Owner Trustee
and the Delaware Trustee shall be entitled to be reimbursed by HFC for their
other reasonable expenses hereunder, including the reasonable compensation,
expenses and disbursements of such agents, representatives, experts and
counsel as the Owner Trustee and the Delaware Trustee may employ in connection
with the exercise and performance of their rights and its duties hereunder.

         Section 8.2 Indemnification. HFC shall be liable as primary obligor
for, and shall indemnify the Owner Trustee and the Delaware Trustee (in their
individual and trustee capacities) and their respective successors, assigns,
agents and servants (collectively, the "Indemnified Parties") from and
against, any and all liabilities, obligations, losses, damages, taxes, claims,
actions and suits, and any and all reasonable costs, expenses and
disbursements (including reasonable legal fees and expenses) of any kind and
nature whatsoever (collectively, "Expenses") which may at any time be imposed
on, incurred by, or asserted against the Owner Trustee, the Delaware Trustee
or any Indemnified Party in any way relating to or arising out of this
Agreement, the Transaction Documents, the Owner Trust Estate, the
administration of the Owner Trust Estate or the action or inaction of the
Owner Trustee or the Delaware Trustee hereunder, except only that HFC shall
not be liable for or required to indemnify an Indemnified Party from and
against Expenses arising or resulting from any of the matters described in the
third sentence of Section 7.1 hereof. The indemnities contained in this
Section 8.2 shall survive the resignation or termination of the Owner Trustee
or the Delaware Trustee or the termination of this Agreement. In the event of
any claim, action or proceeding for which indemnity will be sought pursuant to
this Section 8.2, the choice of legal counsel of the Owner Trustee or Delaware
Trustee, as applicable, shall be subject to the approval of HFC, which
approval shall not be unreasonably withheld.

         Section 8.3 Payments to the Owner Trustee and Delaware Trustee. Any
amounts paid to the Owner Trustee or the Delaware Trustee pursuant to this
Article VIII shall be deemed not to be a part of the Owner Trust Estate
immediately after such payment.

         Section 8.4 Non-recourse Obligations. Notwithstanding anything in
this Agreement or any Transaction Document, (i) the Owner Trustee agrees in
its individual capacity and in its capacity as Owner Trustee for the Trust
that all obligations of the Trust to the Owner Trustee individually or as
Owner Trustee for the Trust shall be recourse to the Trust only and
specifically shall not be recourse to the assets of any Noteholder and (ii)
the Delaware Trustee agrees in its individual capacity and in its capacity as
Delaware Trustee for the Trust that all obligations of the Trust to the
Delaware Trustee individually or as Delaware Trustee for the Trust shall be
recourse to the Trust only and specifically shall not be recourse to the
assets of any Noteholder.

                                      31
<PAGE>

                                  ARTICLE IX

                        TERMINATION OF TRUST AGREEMENT

         Section 9.1 Termination of Trust Agreement.

         (a) This Agreement (other than Article VIII) shall terminate and the
Trust shall dissolve and terminate pursuant to the Statutory Trust Statute and
be of no further force or effect upon notice to the Indenture Trustee of the
earliest of (i) the final payment or other liquidation of the last Home Equity
Loan remaining in the Trust; (ii) the optional purchase by the Master Servicer
of the Home Equity Loans as described in Section 8.01 of the Sale and
Servicing Agreement, (iii) the sale of the Home Equity Loans as described in
Section 10.2 of the Indenture and the corresponding redemption of the Notes;
and (iv) the Payment Date in October 2032. The bankruptcy, liquidation,
dissolution, death or incapacity of the Transferor shall not (x) operate to
terminate this Agreement or the Trust, nor (y) entitle such Transferor'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 Owner Trust Estate nor (z) otherwise affect the rights,
obligations and liabilities of the parties hereto.

         (b) The Ownership Interest shall be subject to an early redemption or
termination at the option of the Master Servicer in the manner and subject to
the provisions of Section 8.01 of the Sale and Servicing Agreement.

         (c) Except as provided in Sections 9.1(a) and (b) above, neither the
Depositor nor the Transferor shall be entitled to revoke or terminate the
Trust.

         (d) If any Ownership Interest is in certificated form, notice of any
termination of the Trust, specifying the Payment Date upon which the
Transferor shall surrender their Ownership Interest to the Paying Agent for
payment of the final distributions and cancellation, shall be given by the
Registrar to the Transferor and the Rating Agencies mailed within five
Business Days of receipt by the Registrar of notice of such termination
pursuant to (a) or (b) above, which notice given by the Owner Trustee shall
state (i) the Payment Date upon or with respect to which final payment of the
Registrar shall be made upon presentation and surrender of the Ownership
Interest at the office of the Paying Agent therein designated, (ii) the amount
of any such final payment and (iii) that the Record Date otherwise applicable
to such Payment Date is not applicable, payments being made only upon
submission of a claim for and acknowledgment of final distribution under the
Ownership Interest at the office of the Paying Agent therein specified. The
Registrar shall give such notice to the Owner Trustee and the Paying Agent at
the time such notice is given to the Transferor. Upon presentation of such
submission of a claim for and acknowledgment of final distribution under the
Ownership Interest, the Paying Agent shall cause to be distributed to the
Transferor amounts distributable on such Payment Date pursuant to Section 5.01
of the Sale and Servicing Agreement.

         In the event that the Transferor shall not have submitted claim for
and acknowledgment of final distribution under the Ownership Interest for
cancellation within six months after the date specified in the above mentioned
written notice, the Registrar shall give a second written notice to the
Transferor with respect thereto. Within one year after such second

                                      32
<PAGE>

notice, the Registrar may take appropriate steps, or may appoint an agent to
take appropriate steps, to contact the Transferor concerning the final
distribution, 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
Delaware Trustee and 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 Statutory Trust Statute.

                                      33
<PAGE>

                                  ARTICLE X

            SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES;
                          SUCCESSOR DELAWARE TRUSTEES

         Section 10.1 Eligibility Requirements for Owner Trustee and Delaware
Trustee. (a) The Owner Trustee shall at all times be a corporation or national
banking association authorized to exercise corporate 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
which has) a long-term rating of at least "Baa3" (or its equivalent) by
Moody's and "A" (or its equivalent) 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 10.1, the Owner Trustee shall resign immediately in the manner
and with the effect specified in Section 10.2.

         (b) The Delaware Trustee shall at all times be an entity satisfying
the provisions of Section 3807(a) of the Delaware Statutory Trust Statute. If
at any time the Delaware Trustee ceases to be eligible in accordance with the
provisions of this Section, the Delaware Trustee will resign immediately in
the manner and with the effect specified in Section 10.02.

         Section 10.2 Resignation or Removal of Owner Trustee or Delaware
Trustee. The Owner Trustee or the Delaware Trustee may at any time resign and
be discharged from the trusts hereby created by giving written notice thereof
to the Trust, the Indenture Trustee and the Rating Agencies. Upon receiving
such notice of resignation, the Indenture Trustee shall promptly appoint a
successor Owner Trustee or Delaware Trustee, as applicable, by written
instrument, in duplicate, one copy of which instrument shall be delivered to
the resigning trustee and one copy to the successor trustee. If no successor
Owner Trustee or Delaware shall have been so appointed and have accepted
appointment within 30 days after the giving of such notice of resignation, the
resigning trustee may petition any court of competent jurisdiction for the
appointment of a successor Owner Trustee or Delaware Trustee, as applicable.

         If at any time the Owner Trustee or Delaware Trustee shall cease to
be eligible in accordance with the provisions of Section 10.1 above and shall
fail to resign after written request therefor by the Indenture Trustee, or if
at any time the Owner Trustee or Delaware 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, or of the Delaware Trustee or its property, shall
be appointed, or any public officer shall take charge or control of the Owner
Trustee or of its property or affairs, or of the Delaware Trustee or of its
property or affairs, for the purpose of rehabilitation, conservation or
liquidation, then the Indenture Trustee may, and, at the direction of the
Majority Noteholder, shall, remove the Owner Trustee or Delaware Trustee, as
applicable. If the Indenture Trustee shall remove the Owner Trustee or
Delaware Trustee under the authority of the immediately preceding sentence,
the Indenture Trustee shall promptly appoint a successor Owner Trustee or
Delaware Trustee, as applicable, by written instrument in duplicate, one copy
of which

                                      34
<PAGE>

instrument shall be delivered to the outgoing trustee so removed and one copy
to the successor trustee and payment of all fees owed to the outgoing trustee.

         Any resignation or removal of the Owner Trustee or Delaware Trustee
and appointment of a successor Owner Trustee or Delaware Trustee, as
applicable, pursuant to any of the provisions of this Section 10.2 shall not
become effective until acceptance of appointment by the successor trustee
pursuant to Section 10.3 and payment of all fees and expenses owed to the
outgoing trustee. The Indenture Trustee shall provide notice of such
resignation or removal of the Owner Trustee or Delaware Trustee to each of the
Rating Agencies.

         Section 10.3 Successor Trustee. Any successor Owner Trustee or
Delaware Trustee appointed pursuant to Section 10.2 shall execute, acknowledge
and deliver to the Indenture Trustee and to its predecessor trustee an
instrument accepting such appointment under this Agreement, and thereupon the
resignation or removal of the predecessor trustee shall become effective and
such successor 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 or Delaware Trustee, as the case may be. The predecessor
Owner Trustee or Delaware Trustee shall upon payment of its fees and expenses
deliver to the successor Owner Trustee or Delaware Trustee, as the case may
be, all documents and statements and monies held by it under this Agreement;
and the Indenture Trustee and the predecessor Owner Trustee or Delaware
Trustee, as the case may be, 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 or Delaware Trustee, as
the case may be, all such rights, powers, duties, and obligations.

         No successor Owner Trustee or Delaware Trustee shall accept
appointment as provided in this Section 10.3 unless at the time of such
acceptance such successor Owner Trustee or Delaware Trustee, as the case may
be, shall be eligible pursuant to Section 10.1 above.

         Upon acceptance of appointment by a successor Owner Trustee or
Delaware Trustee, as the case may be, pursuant to this Section 10.3, the
Indenture Trustee shall mail notice of the successor of such Owner Trustee or
Delaware Trustee to the Transferor, the Noteholders and the Rating Agencies.
If the Indenture Trustee fails to mail such notice within 10 days after
acceptance of appointment by the successor Owner Trustee or Delaware Trustee,
as the case may be, the successor Owner Trustee or Delaware Trustee shall
cause such notice to be mailed at the expense of the Indenture Trustee.

         Any successor Delaware Trustee shall promptly file a certificate of
amendment identifying the name and principal plan of business of the Delaware
Trustee in the State of Delaware.

         Section 10.4 Merger or Consolidation of Owner Trustee or Delaware
Trustee. Any corporation into which the Owner Trustee or Delaware Trustee may
be merged or converted or with which either may be consolidated or any
corporation resulting from any merger, conversion or consolidation to which
the Owner Trustee or Delaware Trustee shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Owner Trustee or Delaware Trustee, shall be the successor of the Owner Trustee
or Delaware Trustee,

                                      35
<PAGE>

as the case may be, hereunder, provided such corporation shall be eligible
pursuant to Section 10.1 above, without the execution or filing of any
instrument or any further act on the part of any of the parties hereto,
anything herein to the contrary notwithstanding; provided further that the
Owner Trustee or Delaware Trustee, as the case may be, shall mail notice of
such merger or consolidation to the Depositor, the Co-Trustee, HFC and the
Rating Agencies.

         Section 10.5 Appointment of Co-Owner Trustee or Separate Owner
Trustee. Notwithstanding any other provisions of this Agreement, at any time,
for the purpose of meeting any legal requirements of any jurisdiction in which
any part of the Owner Trust Estate or any Mortgaged Property may at the time
be located, the Owner Trustee shall have the power and shall execute and
deliver all instruments to appoint one or more Persons to act as co-owner
trustee, jointly with the Owner Trustee, or separate owner trustee or separate
owner trustees, of all or any part of the Owner Trust Estate, and to vest in
such Person, in such capacity, such title to the Trust, or any part thereof,
and, subject to the other provisions of this Section, such powers, duties,
obligations, rights and trusts as the Owner Trustee may consider necessary or
desirable. No co-owner trustee or separate trustee under this Section 10.5
shall be required to meet the terms of eligibility as a successor Owner
Trustee pursuant to Section 10.1 above and no notice of the appointment of any
co-owner trustee or separate trustee shall be required pursuant to Section
10.3 above.

         The Owner Trustee hereby appoints the Indenture Trustee for the
purpose of establishing and maintaining the Collection Account and making the
distributions therefrom to the Persons entitled thereto pursuant to Section
5.01 of the Sale and Servicing Agreement.

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

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

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

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

         Any notice, request or other writing given to the Owner Trustee shall
be deemed to have been given to the separate trustees and co-owner trustees,
as if given to each of them. Every instrument appointing any separate owner
trustee or co-owner trustee, other than this Agreement,

                                      36
<PAGE>

shall refer to this Agreement and to the conditions of this Article X. Each
separate trustee and co-owner trustee, upon its acceptance of appointment,
shall be vested with the estates 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.

         Any separate trustee or co-owner 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 owner trustee or
co-owner trustee shall die, become incapable of acting, resign or be removed,
all of its estates, properties, rights, remedies and trusts shall vest in and
be exercised by the Owner Trustee, to the extent permitted by law, without the
appointment of a new or successor trustee.

                                      37
<PAGE>

                                  ARTICLE XI

                                 MISCELLANEOUS

         Section 11.1 Supplements and Amendments. This Agreement may be
amended by the Depositor, HFC, the Owner Trustee, the Delaware Trustee and the
Co-Trustee with prior written notice to the Rating Agencies and the Indenture
Trustee, but without the consent of any of the Noteholders, the Transferor or
the Indenture Trustee, to cure any ambiguity, to correct or supplement any
provisions in this Agreement or for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions in this Agreement
or of modifying in any manner the rights of the Noteholders or the Transferor;
provided, however, that such action shall not, as evidenced by an Opinion of
Counsel, adversely affect in any material respect the interests of any
Noteholder or the Transferor. An amendment described above shall be deemed not
to adversely affect in any material respect the interests of any Noteholder or
the Transferor if the party requesting the amendment satisfies the Rating
Agency Condition with respect to such amendment.

         This Agreement may also be amended from time to time by the
Depositor, HFC, the Owner Trustee, the Delaware Trustee and the Co-Trustee
with the prior written consent of the Rating Agencies, the Indenture Trustee,
the Majority Noteholder and the Transferor, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions
of this Agreement or modifying in any manner the rights of the Noteholders or
the Transferor; provided, however, that no such amendment shall (a) increase
or reduce in any manner the amount of, or accelerate or delay the timing of,
collections of payments on the Home Equity Loans or distributions that shall
be required to be made for the benefit of the Noteholders or the Transferor or
(b) reduce the aforesaid Percentage Interests required to consent to any such
amendment, without the consent of the holders of all the outstanding Notes;
and provided further, that no such amendment will be effective unless such
action will not, as evidenced by an Opinion of Counsel, adversely affect in
any material respect the interests of any Noteholders. The Depositor shall
join in any such amendment approved as provided in the preceding sentence so
long as such amendment is not adverse to the interests of the Depositor.

         Anything to the contrary herein notwithstanding, no amendment to this
Agreement may be made that affects the rights and liabilities of the Delaware
Trustee without the written consent of the Delaware Trustee.

         Promptly after the execution of any such amendment, the Owner Trustee
shall furnish written notification of the substance of such amendment to the
Indenture Trustee and each of the Rating Agencies.

         It shall not be necessary for the consent of the Transferor, the
Noteholders or the Indenture Trustee pursuant to this Section 11.1 to approve
the particular form of any proposed amendment, but it shall be sufficient if
such consent shall approve the substance thereof. The manner of obtaining such
consents (and any other consents of the Transferor provided for in this
Agreement or in any other Transaction Document) and of evidencing the
authorization of the execution thereof by the Transferor and the Noteholders
shall be subject to such reasonable requirements as the Owner Trustee may
prescribe.

                                      38
<PAGE>

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

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

         Section 11.2 No Legal Title to Owner Trust Estate in Transferor. The
Transferor shall not have legal title to any part of the Owner Trust Estate.
The Transferor shall be entitled to receive distributions with respect to
their undivided ownership interest therein only in accordance with Articles V
and IX herein. No transfer, by operation of law or otherwise, of any right,
title, or interest of the Transferor to and in its Ownership Interest shall
operate to terminate this Agreement or the trusts hereunder or entitle any
transferee to an accounting or to the transfer to it of legal title to any
part of the Owner Trust Estate.

         Section 11.3 Limitations on Rights of Others. The provisions of this
Agreement are solely for the benefit of the Owner Trustee, the Delaware
Trustee, the Trust, the Transferor and, to the extent expressly provided
herein, the Indenture Trustee and the Noteholders, and nothing in this
Agreement, whether express or implied, shall be construed to give to any other
Person any legal or equitable right, remedy or claim in the Owner Trust Estate
or under or in respect of this Agreement or any covenants, conditions or
provisions contained herein.

         Section 11.4 Notices.

         (a) Unless otherwise expressly specified or permitted by the terms
hereof, all notices shall be in writing and shall be deemed given upon receipt
by the intended recipient or three Business Days after mailing if mailed by
certified mail, postage prepaid (except that notice to the Owner Trustee shall
be deemed given only upon actual receipt by the Owner Trustee), at the
following addresses: (i) if to the Owner Trustee, its Corporate Trust Office;
(ii) if to the Delaware Trustee, at White Clay Center, Route 273, Newark,
Delaware 19711; (iii) if to the Co-Trustee, at One Bank One Plaza, Chicago,
Illinois 60670; (iv) if to the Depositor or HFC, 2700 Sanders Road, Prospect
Heights, Illinois 60070, Attention: Treasurer, (v) if to the Indenture
Trustee, its Corporate Trust Office; or, as to each such party, at such other
address as shall be designated by such party in a written notice to each other
party.

         (b) Any notice required or permitted to be given to the Transferor
shall be given by first-class mail, postage prepaid, at the address of such
Transferor as shown in the 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 Transferor receives such notice.

         Section 11.5 Severability. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such

                                      39
<PAGE>

prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such provision in any other
jurisdiction.

         Section 11.6 Separate Counterparts. This Agreement may be executed by
the parties hereto in separate counterparts, each of which when so executed
and delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument.

         Section 11.7 Successors and Assigns. All covenants and agreements
contained herein shall be binding upon, and inure to the benefit of the Owner
Trustee, the Delaware Trustee, the Co-Trustee and the Transferor and its
successors and permitted assigns, all as herein provided. Any request, notice,
direction, consent, waiver or other instrument or action by the Transferor
shall bind the successors and assigns of the Transferor.

         Section 11.8 No Petition. The Owner Trustee, the Delaware Trustee and
the Co-Trustee, by entering into this Agreement, the Transferor, by accepting
the Ownership Interest, 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 Depositor or the Trust, or join in
any institution against the Depositor, or the Trust of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States Federal or state bankruptcy or law in
connection with any obligations relating to the Ownership Interest and the
Notes, this Agreement or any of the Transaction Documents.

         Section 11.9 [Reserved].

         Section 11.10 No Recourse. The Transferor by accepting the Ownership
Interest acknowledges that the Transferor's Ownership Interest represents a
beneficial interest in the Trust only and does not represent an interest in or
an obligation of the Master Servicer, the Depositor, the Owner Trustee, the
Delaware Trustee, the Co-Trustee or any Affiliate thereof and no recourse may
be had against such parties or their assets, except as may be expressly set
forth or contemplated in this Agreement, the Ownership Interest or the
Transaction Documents.

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

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

         Section 11.13 Inconsistencies with Sale and Servicing Agreement.

         In the event certain provisions of this Agreement conflict with the
provisions of the Sale and Servicing Agreement, the parties hereto agree that
the provisions of the Sale and Servicing Agreement shall be controlling (other
than the provisions governing the internal affairs of the Trust, which shall
be governed by Delaware law).

                                      40
<PAGE>

         Section 11.14 Third Party Beneficiary.

         The parties hereto acknowledge that the Indenture Trustee is an
express third party beneficiary hereof entitled to enforce the provisions
hereof as if it were actually a party hereto. Nothing in this Section 11.14
however shall be construed to mitigate in any way, the fiduciary
responsibilities of the Owner Trustee to the beneficiaries of the Trust.

         Section 11.15 Master Servicer.

         The Master Servicer is authorized to prepare, or to cause to be
prepared, execute and deliver on behalf of the Trust all such documents,
reports, filings, instruments, certificates and opinions as it shall be the
duty of the Trust, the Delaware Trustee or the Owner Trustee to prepare, file
or deliver pursuant to the Transaction Documents. Upon written request, the
Owner Trustee shall execute and deliver to the Master Servicer a limited power
of attorney appointing the Master Servicer the Trust's agent and
attorney-in-fact to prepare, or to cause to be prepared, execute and deliver
all such documents, reports, filings, instruments, certificates and opinions.
In addition, the Master Servicer is authorized to cause the Trust to obtain
and maintain the effectiveness of any licenses as provided in Section 7.8.

                                      41
<PAGE>

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

                              HOUSEHOLD FINANCE CORPORATION

                              By: /s/ B. B. Moss, Jr.
                                  --------------------------------------------
                                  Name:  B. B. Moss, Jr.
                                  Title: Vice President and Treasurer

                              HFC REVOLVING CORPORATION,
                               as Depositor

                              By: /s/ David J. Hunter
                                  ---------------------------------------------
                                  Name:  David J. Hunter
                                  Title: Vice President and Assistant Treasurer

                               THE BANK OF NEW YORK (DELAWARE),
                                as Delaware Trustee

                               By: /s/ William T. Lewis
                                   --------------------------------------------
                                   Name:  William T. Lewis
                                   Title: Sr. Vice President

                               BANK ONE, NATIONAL ASSOCIATION,
                                as Co-Trustee

                               By: /s/ Steven E. Charles
                                   --------------------------------------------
                                   Name:  STEVEN E. CHARLES
                                   Title: VICE PRESIDENT

                               THE BANK OF NEW YORK,
                                as Owner Trustee

                               By: /s/ Jonathan Farber
                                   --------------------------------------------
                                   Name:  JONATHAN FARBER
                                   Title: ASSISTANT TREASURER

<PAGE>

                                   EXHIBIT A

                            CERTIFICATE OF TRUST OF
                    HOUSEHOLD HOME EQUITY LOAN TRUST 2003-1
                    ---------------------------------------

         THIS Certificate of Trust of HOUSEHOLD HOME EQUITY LOAN TRUST 2003-1
(the "Trust"), is being duly executed and filed by the undersigned, as
trustees, to form a statutory trust under the Delaware Statutory Trust Act (12
Del. Code, ss. 3801 et seq.)(the "Act").

         1. Name. The name of the statutory trust formed hereby is HOUSEHOLD
HOME EQUITY LOAN TRUST 2003-1.

         2. Delaware Trustee. The name and business address of the trustee of
the Trust in the State of Delaware is The Bank of New York (Delaware), White
Clay Center, Route 273, Newark, Delaware 19711. Attention: Corporate Trust
Administration Department.

         IN WITNESS WHEREOF, the undersigned, being all of the trustees of the
Trust, have executed this Certificate of Trust in accordance with Section
3811(a) of the Act.

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

                                 By:___________________________________
                                    Name:
                                    Title:

                                 THE BANK OF NEW YORK
                                 (DELAWARE), not in its individual capacity
                                  but solely as Delaware

                                 By:___________________________________
                                    Name:
                                    Title:

                                     A-1
<PAGE>

                                   EXHIBIT B

                             TRANSFER CERTIFICATE
                             --------------------

The Bank of New York
101 Barclay St., 8W
New York, New York  10286

Attention: Corporate Trust Administration

                  Re:      Amended and Restated Trust Agreement, August 28,
                           2003, Household Finance Corporation, HFC Revolving
                           Corporation, as Depositor, The Bank of New York
                           (Delaware), as Delaware Trustee, The Bank of New
                           York, as Owner Trustee, and Bank One, National
                           Association, as Co-Trustee; Household Home Equity
                           Loan Trust 2003-1, Closed-End Home Equity Loan
                           Asset Backed Notes, Series 2003-1
                           ---------------------------------------------------

Ladies and Gentlemen:

         The undersigned (the "Transferee") has agreed to purchase
_____________ from (the "Transferor") the Ownership Interest:

         A. Rule 144A "Qualified Institutional Buyers" should complete this
section

         I. The Transferee is (check one):

         _____  (i) An insurance company, as defined in Section 2(13) of the
                Securities Act of 1933, as amended (the "Securities Act"), (ii)
                an investment company registered under the Investment Company
                Act of 1940, as amended (the "Investment Company Act"), (iii) a
                business development company as defined in Section 2(a)(48) of
                the Securities Act, (iv) a Small Business Investment Company
                licensed by the U.S. Small Business Administration under
                Section 301(c) or (d) of the Small Business Investment Act of
                1958, (v) a plan established and maintained by a state, its
                political subdivisions, or any agency or instrumentality of a
                state or its political subdivisions, for the benefit of its
                employees, (vi) an employee benefit plan within the meaning of
                Title I of the Employee Retirement Income Security Act of 1974,
                as amended ("ERISA"), (vii) a business development company as
                defined in Section 202(a)(22) of the Investment Advisors Act of
                1940, (viii) an organization described in Section 501(c)(3) of
                the Internal Revenue Code, corporation (other than a bank as
                defined in Section 3(a)(2) of the Securities Act or a savings
                and loan association or

                                      B-1
<PAGE>

                other institution referenced in Section 3(a)(2) of the
                Securities Act or a foreign bank or savings and loan
                association or equivalent institution), partnership, or
                Massachusetts or similar business trust; or (ix) an investment
                advisor registered under the Investment Advisors Act of 1940,
                which, for each of (i) through (ix), owns and invests on a
                discretionary basis at least $100 million in securities other
                than securities of issuers affiliated with the Transferee,
                securities issued or guaranteed by the United States or a
                person controlled or supervised by and acting as an
                instrumentality of the government of the United States pursuant
                to authority granted by the Congress of the United States, bank
                deposit notes and certificates of deposit, loan participations,
                repurchase agreements, securities owned but subject to a
                repurchase agreement, and currency, interest rate and commodity
                swaps (collectively, "Excluded Securities");

         _____  a dealer registered pursuant to Section 15 of the
                Securities Exchange Act of 1934, as amended (the
                "Exchange Act") that in the aggregate owns and
                invests on a discretionary basis at least $10
                million of securities other than Excluded
                Securities and securities constituting the whole or
                part of an unsold allotment to, or subscription by,
                Transferee as a participant in a public offering;

         _____  an investment company registered under the
                Investment Company Act that is part of a family of
                investment companies (as defined in Rule 144A of
                the Securities and Exchange Commission) which own
                in the aggregate at least $100 million in
                securities other than Excluded Securities and
                securities of issuers that are part of such family
                of investment companies;

         _____  an entity, all of the equity owners of which are entities
                described in this Paragraph A(I);

         _____  a bank as defined in Section 3(a)(2) of the
                Securities Act, any savings and loan association or
                other institution as referenced in Section
                3(a)(5)(A) of the Securities Act, or any foreign
                bank or savings and loan association or equivalent
                institution that in the aggregate owns and invests
                on a discretionary basis at least $100 million in
                securities other than Excluded Securities and has
                an audited net worth of at least $25 million as
                demonstrated in its latest annual financial
                statements, as of a date not more than 16 months
                preceding the date of transfer of the Ownership
                Interest to the Transferee in the case of a U.S.
                bank or savings and loan association, and not more
                than 18 months preceding such date in the case of a
                foreign bank or savings association or equivalent
                institution.

         II. The Transferee is acquiring such Ownership Interest solely for
its own account, for the account of one or more others, all of which are
"Qualified Institutional Buyers" within the meaning of Rule 144A, or in its
capacity as a dealer registered pursuant to Section 15 of the Exchange Act
acting in a riskless principal transaction on behalf of a "Qualified
Institutional Buyer". The Transferee is not acquiring such Ownership Interest
with a view to or

                                      B-2
<PAGE>

for the resale, distribution, subdivision or fractionalization thereof which
would require registration of the Ownership Interest under the Securities Act.

                  B. "Accredited Investors" should complete this Section

                  I. The Transferee is (check one):

                  ____     a bank within the meaning of Section 3(a)(2) of the
                           Securities Act;

                  ____     a savings and loan association or other institution
                           defined in Section 3(a)(5) of the Securities Act;

                  ____     a broker or dealer registered pursuant to the
                           Exchange Act;

                  ____     an insurance company within the meaning of
                           Section 2(13) of the Securities Act;

                  ____     an investment company registered under the
                           Investment Company Act;

                  ____     an  employee  benefit plan within the meaning of
                           Title I of ERISA,  which has total  assets in excess
                           of $5,000,000;

                  ____     another entity which is an "accredited investor"
                           within the meaning of paragraph ____ (fill in) of
                           subsection (a) of Rule 501 of the Securities and
                           Exchange Commission.

         II. The Transferee is acquiring such Ownership Interest solely for
its own account, for investment, and not with a view to or for the resale,
distribution, subdivision or fractionalization thereof which would require
registration of the Ownership Interest under the Securities Act.

         C. If the Transferee is unable to complete one of paragraph A(I) or
paragraph B(I) above, the Transferee must furnish an opinion in form and
substance satisfactory to the Trustee of counsel satisfactory to the Trustee
to the effect that such purchase will not violate any applicable federal or
state securities laws.

         D. The Transferee is not (A) an "employee benefit plan" within the
meaning of Section 3(3) of the Employee Retirement Income Security Act of
1974, as amended ("ERISA") that is subject to Title I of ERISA, or (B) a
"plan" within the meaning of and subject to Section 4975(e)(1) of the Code
(any such plan or employee benefit plan, a "Plan") or (C) 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 and is not directly or indirectly purchasing such Trust Security on
behalf of, as investment manager of, as named fiduciary of, as trustee of, or
with assets of a Plan.

         (iii) the Transferee is an "accredited investor" as defined in Rule
501(a) of Regulation D pursuant to the Securities Act.

                                      B-3
<PAGE>

                                         Very truly yours,
                                         [NAME OF TRANSFEREE]

                                         By:_________________
                                         Title:______________

Dated:

THE FOREGOING IS ACKNOWLEDGED THIS ____ DAY OF __________, 200_.

[NAME OF TRANSFEROR]
By:_____________________
Title:__________________

                                      B-4EXHIBIT 4.3
                                                                   -----------

<PAGE>

                                                                     EXECUTION

                                   INDENTURE

                                    between

                    HOUSEHOLD HOME EQUITY LOAN TRUST 2003-1
                                   as Issuer

                                      and

                        BANK ONE, NATIONAL ASSOCIATION,
                             as Indenture Trustee

                             Dated August 28, 2003

                    HOUSEHOLD HOME EQUITY LOAN TRUST 2003-1
         Closed-End Home Equity Loan Asset Backed Notes, Series 2003-1

<PAGE>

<TABLE>
<CAPTION>

                               Table of Contents
                                                                                          Page
                                                                                          ----
                                   ARTICLE I
                                  DEFINITIONS

<S>               <C>                                                                       <C>
SECTION 1.1       Definitions................................................................2
SECTION 1.2       Incorporation by Reference of Trust Indenture Act..........................9
SECTION 1.3       Rules of Construction.....................................................10

                                  ARTICLE II
                                   THE NOTES

SECTION 2.1       Form......................................................................11
SECTION 2.2       Execution, Authentication, Delivery and Dating............................11
SECTION 2.3       Registration; Registration of Transfer and Exchange.......................12
SECTION 2.4       Mutilated, Destroyed, Lost or Stolen Notes................................13
SECTION 2.5       Persons Deemed Owner......................................................13
SECTION 2.6       Payment of Principal and Interest; Defaulted Interest.....................14
SECTION 2.7       Cancellation..............................................................14
SECTION 2.8       [Reserved]................................................................14
SECTION 2.9       Release of Trust Estate...................................................15
SECTION 2.10      Book-Entry Notes..........................................................15
SECTION 2.11      Notices to Clearing Agency................................................16
SECTION 2.12      Definitive Notes..........................................................16
SECTION 2.13      Tax Treatment.............................................................16
SECTION 2.14      ERISA Representation......................................................16

                                  ARTICLE III
                                   COVENANTS

SECTION 3.1       Payment of Principal and Interest.........................................18
SECTION 3.2       Maintenance of Office or Agency...........................................18
SECTION 3.3       Money for Payments To Be Held in Trust....................................18
SECTION 3.4       Existence.................................................................19
SECTION 3.5       Protection of Trust Estate................................................20
SECTION 3.6       Annual Opinions as to the Trust Estate....................................20
SECTION 3.7       Performance of Obligations; Servicing of Home Equity Loans................21
SECTION 3.8       Negative Covenants........................................................22
SECTION 3.9       Annual Statement as to Compliance.........................................23
SECTION 3.10      Covenants of the Issuer...................................................24
SECTION 3.11      Master Servicer's Obligations.............................................24
SECTION 3.12      Restricted Payments.......................................................24
SECTION 3.13      Treatment of Notes as Debt for All Purposes...............................24
SECTION 3.14      Notice of Events of Default...............................................24
SECTION 3.15      Further Instruments and Acts..............................................24

                                      i
<PAGE>

SECTION 3.16      Issuer May Consolidate, etc...............................................25
SECTION 3.17      Successor or Transferee...................................................26
SECTION 3.18      No Other Business.........................................................27
SECTION 3.19      No Borrowing..............................................................27
SECTION 3.20      Guarantees, Loans, Advances and Other Liabilities.........................27
SECTION 3.21      Capital Expenditures......................................................27
SECTION 3.22      Representations and Warranties of the Issuer..............................27

                                  ARTICLE IV
                          SATISFACTION AND DISCHARGE

SECTION 4.1       Satisfaction and Discharge of Indenture...................................28
SECTION 4.2       Application of Trust Money................................................29
SECTION 4.3       [Reserved]................................................................29
SECTION 4.4       Repayment of Moneys Held by Paying Agent..................................30

                                   ARTICLE V
                                   REMEDIES

SECTION 5.1       Events of Default.........................................................32
SECTION 5.2       Acceleration of Maturity; Rescission and Annulment........................33
SECTION 5.3       Collection of  Indebtedness  and Suits for  Enforcement  by Indenture
                  Trustee...................................................................34
SECTION 5.4       Remedies; Priorities......................................................36
SECTION 5.5       Optional Preservation of the Trust Estate.................................37
SECTION 5.6       Limitation of Suits.......................................................38
SECTION 5.7       Unconditional   Rights  of  Noteholders  To  Receive   Principal  and
                  Interest..................................................................38
SECTION 5.8       Restoration of Rights and Remedies........................................38
SECTION 5.9       Rights and Remedies Cumulative............................................39
SECTION 5.10      Delay or Omission Not a Waiver............................................39
SECTION 5.11      Control by Noteholders....................................................39
SECTION 5.12      Waiver of Past Defaults...................................................40
SECTION 5.13      Undertaking for Costs.....................................................40
SECTION 5.14      Waiver of Stay or Extension Laws..........................................40
SECTION 5.15      Action on Notes...........................................................40
SECTION 5.16      Performance and Enforcement of Certain Obligations........................41

                                  ARTICLE VI
                             THE INDENTURE TRUSTEE

SECTION 6.1       Duties of Indenture Trustee...............................................42
SECTION 6.2       Rights of Indenture Trustee...............................................43
SECTION 6.3       Individual Rights of Indenture Trustee....................................45
SECTION 6.4       Indenture Trustee's Disclaimer............................................45
SECTION 6.5       Notice of Defaults........................................................45

                                      ii
<PAGE>

SECTION 6.6       Reports by Indenture Trustee to Holders...................................45
SECTION 6.7       Compensation and Indemnity................................................46
SECTION 6.8       Replacement of Indenture Trustee..........................................46
SECTION 6.9       Successor Indenture Trustee by Merger.....................................47
SECTION 6.10      Appointment of Co-Indenture Trustee or Separate Indenture Trustee.........47
SECTION 6.11      Eligibility; Disqualification.............................................49
SECTION 6.12      Preferential Collection of Claims Against Issuer..........................49
SECTION 6.13      Representations and Warranties............................................49
SECTION 6.14      Directions to Indenture Trustee...........................................49

                                  ARTICLE VII
                        NOTEHOLDERS' LISTS AND REPORTS

SECTION 7.1       Issuer  To  Furnish   Indenture   Trustee   Names  and  Addresses  of
                  Noteholders...............................................................51
SECTION 7.2       Preservation of Information; Communications to Noteholders................51
SECTION 7.3       Reports by Issuer.........................................................51
SECTION 7.4       Reports by Indenture Trustee..............................................52

                                 ARTICLE VIII
                     ACCOUNTS, DISBURSEMENTS AND RELEASES

SECTION 8.1       Collection of Money.......................................................53
SECTION 8.2       Accounts; Distributions...................................................53
SECTION 8.3       [Reserved]................................................................54
SECTION 8.4       Master Servicer's Monthly Statements......................................54
SECTION 8.5       [Reserved]................................................................54
SECTION 8.6       Opinion of Counsel........................................................54

                                  ARTICLE IX
                            SUPPLEMENTAL INDENTURES

SECTION 9.1       Supplemental Indentures without Consent of Noteholders....................55
SECTION 9.2       Supplemental Indentures with Consent of Noteholders.......................56
SECTION 9.3       Execution of Supplemental Indentures......................................57
SECTION 9.4       Effect of Supplemental Indenture..........................................57
SECTION 9.5       Conformity with Trust Indenture Act.......................................58
SECTION 9.6       Reference in Notes to Supplemental Indentures.............................58

                                   ARTICLE X
                             TERMINATION OF TRUST

SECTION 10.1      Early Termination.........................................................59
SECTION 10.2      Mandatory Redemption......................................................59

                                      iii
<PAGE>

                                  ARTICLE XI
                                 MISCELLANEOUS

SECTION 11.1      Compliance Certificates and Opinions, etc.................................62
SECTION 11.2      Form of Documents Delivered to Indenture Trustee..........................63
SECTION 11.3      Acts of Noteholders.......................................................64
SECTION 11.4      Notices...................................................................65
SECTION 11.5      Notices to Noteholders; Waiver............................................65
SECTION 11.6      [Reserved]................................................................66
SECTION 11.7      Conflict with Trust Indenture Act.........................................66
SECTION 11.8      Effect of Headings and Table of Contents..................................67
SECTION 11.9      Successors and Assigns....................................................67
SECTION 11.10     Separability..............................................................67
SECTION 11.11     Benefits of Indenture.....................................................67
SECTION 11.12     Legal Holidays............................................................67
SECTION 11.13     Governing Law.............................................................67
SECTION 11.14     Counterparts..............................................................67
SECTION 11.15     Recording of Indenture....................................................67
SECTION 11.16     Trust Obligation..........................................................68
SECTION 11.17     No Petition...............................................................68
SECTION 11.18     Inspection................................................................68
SECTION 11.19     Inconsistencies with the Sale and Servicing Agreement.....................68
SECTION 11.20     Third-Party Beneficiaries.................................................69
SECTION 11.21     Limited Recourse..........................................................69
SECTION 11.22     Limitation on Voting of Preferred Stock...................................69
SECTION 11.23     Limitation of Liability...................................................70
SECTION 11.24     [Reserved]................................................................70
SECTION 11.25     Entire Agreement..........................................................70
</TABLE>

                                      iv
<PAGE>

EXHIBITS

SCHEDULE A  - Perfection Representations, Warranties and Covenants
SCHEDULE B  - Home Equity Loan Schedule
EXHIBIT A   - Form of Class A Notes and Class M Notes

                                      v
<PAGE>

     INDENTURE dated August 28, 2003 between HOUSEHOLD HOME EQUITY LOAN TRUST
2003-1, a Delaware statutory trust (the "Issuer"), and Bank One, National
Association, a national banking association, as trustee and not in its
individual capacity (the "Indenture Trustee").

     Each party agrees as follows for the benefit of the other party and for
the equal and ratable benefit of the holders of the Issuer's Closed-End Home
Equity Loan Asset-Backed Notes, Series 2003-1 (the "Notes"):

                                GRANTING CLAUSE

     Subject to the terms of this Indenture, the Issuer hereby Grants to the
Indenture Trustee at the Closing Date, as Indenture Trustee for the benefit of
the Noteholders, all of the Issuer's right, title and interest in and to: (i)
the Trust Estate; (ii) all right, title and interest of the Issuer in the Sale
and Servicing Agreement (including the Issuer's right to cause the Depositor
or the Master Servicer to repurchase Home Equity Loans from the Issuer under
certain circumstances described therein), the Conduit Transfer Agreement, the
Term Transfer Agreement and the Reassignment (only with respect to the Conduit
Transferred Assets transferred thereunder); (iii) all present and future
claims, demands, causes of action and choses in action in respect of any or
all of the foregoing and all payments on or under and all proceeds of every
kind and nature whatsoever in respect of any or all of the foregoing,
including all proceeds of the conversion thereof, voluntary or involuntary,
into cash or other liquid property, all cash proceeds, accounts, accounts
receivable, notes, drafts, acceptances, chattel paper, checks, deposit
accounts, insurance proceeds, condemnation awards, rights to payment of any
and every kind and other forms of obligations and receivables, instruments and
other property which at any time constitute all or part of or are included in
the proceeds of any of the foregoing; (iv) all other property of the Trust
from time to time; and (v) any and all proceeds of the foregoing (collectively
the "Collateral").

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

     The Indenture Trustee, as Indenture Trustee on behalf of the holders of
the Notes, acknowledges the foregoing Grant, accepts the trusts hereunder in
good faith and without notice of any adverse claim or liens and agrees to
perform its duties required in this Indenture to the best of its ability to
the end that the interests of the holders of the Notes may be adequately and
effectively protected. The Indenture Trustee further agrees and acknowledges
that each item of Collateral that is physically delivered to the Indenture
Trustee will be held by the Indenture Trustee in Illinois.

<PAGE>

                                  ARTICLE I

                                  DEFINITIONS

     SECTION 1.1 Definitions.

     (a) For all purposes of this Indenture, except as otherwise expressly
provided herein or unless the context otherwise requires, capitalized terms
not otherwise defined herein shall have the meanings assigned to such terms in
the Sale and Servicing Agreement. All other capitalized terms used herein
shall have the meanings specified herein.

     "Accrual Period" shall have the meaning assigned thereto in the Sale and
Servicing Agreement.

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

     "Affiliate" means, with respect to any specified Person, 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 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" and
"controlled" have meanings correlative to the foregoing.

     "Authorized Officer" means, with respect to the Issuer, any officer of
the Owner Trustee who is authorized to act for the Owner Trustee in matters
relating to the Issuer and who is identified on the list of Authorized
Officers delivered by the Owner Trustee to the Indenture Trustee on the
Closing Date (as such list may be modified or supplemented from time to time
thereafter).

     "Book-Entry Note" means any Note registered in the name of the Depository
or its nominee, ownership of which is reflected on the books of the Depository
or on the books of a Person maintaining an account with such Depository
(directly or as an indirect participant in accordance with the rules of such
Depository).

     "Business Day" has the meaning assigned thereto in the Sale and Servicing
Agreement.

     "Certificate of Trust" means the certificate of trust of the Issuer
substantially in the form of Exhibit C to the Trust Agreement.

     "Class A Note" means any Closed-End Home Equity Loan Asset Backed Notes,
Series 2003-1, Class A, issued and executed by the Issuer and authenticated by
the Indenture Trustee substantially in the form of Exhibit A hereto.

     "Class M Note" means any Closed-End Home Equity Loan Asset Backed Notes,
Series 2003-1, Class M, issued and executed by the Issuer and authenticated by
the Indenture Trustee substantially in the form of Exhibit A hereto.

                                      2
<PAGE>

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

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

     "Closing Date" means August 28, 2003.

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

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

     "Collection Account" means the Collection Account (as defined in the Sale
and Servicing Agreement) established by the Indenture Trustee.

     "Commission" shall mean the Securities and Exchange Commission.

     "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 date of execution of this Indenture is located
at One Bank One Plaza, Chicago, Illinois 60670 Attention: Indenture Trust
Administration, or at such other address as the Indenture Trustee may
designate from time to time by notice to the Noteholders and the Issuer or the
principal corporate trust office of any successor Indenture Trustee at the
address designated by such successor Indenture Trustee by notice to the
Noteholders and the Issuer.

     "Default" means any occurrence that is, or with notice or the lapse of
time or both would become, an Event of Default.

     "Definitive Notes" has the meaning specified in Article II.

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

     "Depositor" shall mean HFC Revolving Corporation, a Delaware corporation,
in its capacity as depositor under the Sale and Servicing Agreement, and its
successor in interest.

     "Depository Institution" means any depository institution or trust
company, including the Indenture Trustee, that (i) has short-term debt
obligations and long-term debt obligations at the time of any deposit therein
and throughout the time the interest is maintained that are rated at least
"A-1" by Standard & Poor's and "Baa3" by Moody's, respectively, and that the
deposits in such account are fully insured to the maximum extent provided by
either the BIF or the SAIF and which is any of (a) a federal savings and loan
association duly organized, validly existing and in good standing under the
applicable banking laws of any state, (b) an institution duly

                                      3
<PAGE>

organized, validly existing and in good standing under the applicable banking
laws of any state, (c) a national banking association duly organized, validly
existing and in good standing under the federal banking laws or (d) a
principal subsidiary of a bank holding company. Such Depository Institution
shall have (x) a segregated trust account maintained with the corporate trust
department of a federal or state chartered depository or trust company, having
capital and surplus of not less than $50,000,000, acting in its fiduciary
capacity or (y) an account otherwise acceptable to each Rating Agency as
evidenced by a letter from such Rating Agency to each of the Owner Trustee and
the Indenture Trustee, without reduction or withdrawal of either of its then
current ratings of the Notes.

     "Event of Default" has the meaning specified in Section 5.1.

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

     "Executive Officer" means, with respect to any corporation, the Chief
Executive Officer, Chief Operating Officer, Chief Financial Officer,
President, Executive Vice President, any Vice President, the Secretary, the
Treasurer, or any Assistant Treasurer of such corporation; and with respect to
any partnership, any general partner thereof.

     "Final Scheduled Payment Date" means, with respect to any Note, the
Payment Date occurring in October 2032.

     "Fitch" shall mean Fitch, Inc., or any successor thereto.

     "Grant" means mortgage, pledge, bargain, warrant, alienate, remise,
release, convey, assign, transfer, create, and grant a lien upon and a
security interest in and right of set-off against, deposit, set over and
confirm pursuant to this Indenture. A Grant of the Collateral with respect to
any other agreement or instrument shall include all rights, powers and options
(but none of the obligations) of the granting party thereunder, including the
immediate and continuing right to claim for, collect, receive and give receipt
for principal and interest payments in respect of the Collateral and all other
moneys payable thereunder, to give and receive notices and other
communications, to make waivers or other agreements, to exercise all rights
and options, to bring Proceedings in the name of the granting party or
otherwise, and generally to do and receive anything that the granting party is
or may be entitled to do or receive thereunder or with respect thereto.

     "Holder" or "Noteholder" means the Person in whose name a Note is
registered on the Note Register.

     "Home Equity Loan Schedule" means the listing of the Home Equity Loans
set forth in Schedule B, as supplemented as of any date on which a Defective
Home Equity Loan has been repurchased from the Trust or substituted with an
Eligible Substitute Home Equity Loan pursuant to the Sale and Servicing
Agreement.

                                      4
<PAGE>

     "Indenture Trustee" means Bank One, National Association, a national
banking association, as Indenture Trustee under this Indenture, or any
successor Indenture Trustee appointed pursuant to the terms of this Indenture.

     "Independent" means, when used with respect to any specified Person, that
the Person (a) is in fact independent of the Issuer, any other obligor on the
Notes, the Transferor and any Affiliate of any of the foregoing Persons, (b)
does not have any direct financial interest or any material indirect financial
interest in the Issuer, any such other obligor, the Transferor or any
Affiliate of any of the foregoing Persons and (c) is not connected with the
Issuer, any such other obligor, the Transferor or any Affiliate of any of the
foregoing Persons as an officer, employee, promoter, underwriter, trustee,
partner, director or person performing similar functions.

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

     "Issuer" means Household Home Equity Loan Trust 2003-1 until a successor
replaces it in accordance with the terms of the Transaction Documents and,
thereafter, means the successor.

     "Issuer Order" and "Issuer Request" mean a written order or request
signed in the name of the Issuer by any one of its Authorized Officers and
delivered to the Indenture Trustee.

     "LIBOR" shall have the meaning assigned thereto in the Sale and Servicing
Agreement.

     "LIBOR Business Day" shall have the meaning assigned thereto in the Sale
and Servicing Agreement.

     "Lien" shall mean any lien, pledge, encumbrance or security interest on
or in any particular asset or property.

     "Majority Noteholder" shall mean the Holder or Holders of Notes
representing at least 51% of the Outstanding Amount.

     "Mandatory Redemption Price" as of any date of determination shall mean
an amount equal to the aggregate of the Outstanding Amount of the Notes,
together with any unpaid Interest Carry Forward Amounts and Supplemental
Interest Amounts on the Class A Notes and Class M Notes, plus one month's
interest on their respective Note Principal Amounts and any unpaid Interest
Carry Forward Amounts and Supplemental Interest Amounts on the Class A Notes
and Class M Notes at their respective Note Rates.

     "Master Servicer" shall mean Household Finance Corporation, in its
capacity as master servicer under the Sale and Servicing Agreement, or any
Successor Master Servicer appointed in accordance with the terms of the Sale
and Servicing Agreement.

                                      5
<PAGE>

     "Moody's" shall mean Moody's Investors Service, Inc., or any successor
thereto.

     "Note" means any Class A Note or Class M Note.

     "Note Depository Agreement" means the agreement dated August 27, 2003,
among the Issuer, the Indenture Trustee and The Depository Trust Company, as
the initial Clearing Agency, relating to the Book-Entry Notes.

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

     "Note Rate" with respect to either the Class A Notes or Class M Notes
shall have the meaning assigned thereto in the Sale and Servicing Agreement.

     "Note Register" and "Note Registrar" have the respective meanings
specified in Article II.

     "Noteholder" means a Holder of a Note. Any reference to a "Class A
Noteholder" or a "Class M Noteholder" means a Holder of a Class A or Class M
Note, respectively.

     "Obligations" shall mean the Home Equity Loans.

     "Officer's Certificate" means a certificate signed by any Authorized
Officer of the Issuer, under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 11.1 herein, and
delivered to the Indenture Trustee. Unless otherwise specified, any reference
in this Indenture to an Officer's Certificate shall be to an Officer's
Certificate of any Authorized Officer of the Issuer.

     "Opinion of Counsel" means one or more written opinions of counsel who
may, except as otherwise expressly provided in this Indenture, be employees of
or counsel to the Issuer and who shall be satisfactory to the Indenture
Trustee, and which opinion or opinions shall be addressed to the Indenture
Trustee and shall comply with any applicable requirements of Section 11.1
herein and shall be in form and substance reasonably satisfactory to the
Indenture Trustee.

     "Outstanding" means, with respect to any Note and as of the date of
determination, any Note theretofore authenticated and delivered under this
Indenture except:

          (i) Notes theretofore canceled by the Note Registrar or delivered to
     the Note Registrar for cancellation;

          (ii) Notes or portions thereof the payment for which money in the
     necessary amount has been theretofore deposited with the Indenture
     Trustee or any Paying Agent in trust for the Holders of such Notes
     (provided, however, that if such Notes are to be

                                      6
<PAGE>

     redeemed, notice of such redemption has been duly given pursuant to this
     Indenture or provision for such notice has been made, satisfactory to the
     Indenture Trustee);

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

          (iv) Notes for which the Final Scheduled Payment Date has occurred;

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

     "Outstanding Amount" means the aggregate principal amount of all Notes
Outstanding at the date of determination.

     "Owner Trustee" means The Bank of New York, not in its individual
capacity but solely as Owner Trustee under the Trust Agreement, its successors
in interest and any successor Owner Trustee under the Trust Agreement.

     "Ownership Interest" shall have the meaning assigned thereto in the Sale
and Servicing Agreement.

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

     "Payment Date" shall mean the twentieth day of each month or, if such day
is not a Business Day, then the next Business Day, beginning in October 2003.

     "Perfection Representations" shall mean the representations contained in
Schedule A hereto.

     "Person" means any individual, corporation, estate, partnership, joint
venture, association, joint stock company, trust (including any beneficiary
thereof), unincorporated organization, limited liability company, limited
liability partnership, or government or any agency or political subdivision
thereof.

                                      7
<PAGE>

     "Predecessor Note" means, with respect to any particular Note, every
previous Note evidencing all or a portion of the same debt as that evidenced
by such particular Note; and, for the purpose of this definition, any Note
authenticated and delivered under Article II in lieu of a mutilated, lost,
destroyed or stolen Note shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Note.

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

     "Rating Agency" means any of (i) Fitch, (ii) Moody's or (iii) Standard &
Poor's. If no such organization or successor is any longer in existence,
"Rating Agency" shall be a nationally recognized statistical rating
organization or other comparable person designated by the Depositor, notice of
which designation shall have been given to the Indenture Trustee.

     "Rating Agency Condition" means, with respect to certain actions
requiring prior Rating Agency consent, that each Rating Agency shall have been
given 10 days (or such shorter period as is acceptable to each Rating Agency)
prior notice thereof and that each of the Rating Agencies shall have notified
the Transferor and the Master Servicer that such action will not result in a
reduction or withdrawal of such Rating Agency's then current ratings of the
Notes.

     "Record Date" shall have the meaning assigned thereto in the Sale and
Servicing Agreement.

     "Redemption Date" means, in the case of a redemption of the Notes
pursuant to Section 10.1 or 10.2, the Payment Date specified by the Indenture
Trustee pursuant to Section 10.1 or 10.2, as applicable.

     "Registered Holder" means the Person in whose name a Note is registered
on the Note Register on the applicable Record Date.

     "Responsible Officer" shall have the meaning assigned thereto in the Sale
and Servicing Agreement.

     "Sale and Servicing Agreement" means the Sale and Servicing Agreement
dated as of August 28, 2003, among the Issuer, the Depositor, the Master
Servicer and the Indenture Trustee.

     "Securities Act" means the Securities Act of 1933, as amended.

     "Standard & Poor's" means Standard & Poor's Ratings Services, a division
of The McGraw-Hill Companies, Inc., or any successor thereto.

     "State" means any one of the 50 States of the United States of America or
the District of Columbia.

     "Successor Master Servicer" has the meaning specified in Section 3.7(e)
hereof.

     "Transaction Documents" has the meaning set forth in the Sale and
Servicing Agreement.

                                      8
<PAGE>

     "Transferor" shall have the meaning assigned thereto in the Sale and
Servicing Agreement.

     "Trust" means the Issuer.

     "Trust Agreement" shall mean the amended and restated trust agreement
dated August 28, 2003 among the Depositor, Household Finance Corporation, the
Owner Trustee, the Co-Trustee and the Delaware Trustee, as the same may be
amended, supplemented or otherwise modified from time to time.

     "Trust Estate" shall mean the assets transferred and assigned to the
Trust pursuant to the Sale and Servicing Agreement, the Conduit Transfer
Agreement, the Term Transfer Agreement, the Reassignment and the Trust
Agreement and pledged to the Indenture Trustee pursuant to this Indenture,
consisting of: (i) each Home Equity Loan and each Eligible Substitute Home
Equity Loan and its related Mortgage Note and other Mortgage File documents
for each Home Equity Loan and each Eligible Substitute Home Equity Loan,
including such Home Equity Loan's, and each such Eligible Substitute Home
Equity Loan's, Principal Balance and all collections in respect thereof
received after the Cut-Off Date or Subsequent Cut-Off Date, as applicable;
(ii) property that secured each Home Equity Loan and each Eligible Substitute
Home Equity Loan that has become REO; (iii) the interest of the Depositor in
certain hazard insurance policies maintained by the Mortgagors or the Master
Servicer in respect of each Home Equity Loan and each Eligible Substitute Home
Equity Loan transferred by the Depositor; (iv) the Collection Account and all
amounts on deposit in the Collection Account (exclusive of net earnings
thereon); (v) one share of Preferred Stock of the Depositor; (vi) the Trust's
rights under the Sale and Servicing Agreement; (vii) any proceeds of any of
the foregoing and (viii) all other assets included or to be included in the
Trust for the benefit of Noteholders.

     "Trust Indenture Act" or "TIA" means the Trust Indenture Act of 1939 as
in force on the date hereof, unless otherwise specifically provided.

     "UCC" means, unless the context otherwise requires, the Uniform
Commercial Code, as in effect in the relevant jurisdiction, as amended from
time to time.

     SECTION 1.2 Incorporation by Reference of Trust Indenture Act. Whenever
this Indenture refers to a provision of the TIA, the provision is incorporated
by reference in and made a part of this Indenture. The following TIA terms
used in this Indenture have the following meanings:

     "Commission" means the Securities and Exchange Commission.

     "indenture securities" means the Notes.

     "indenture security holder" means a Noteholder.

     "indenture to be qualified" means this Indenture.

                                      9
<PAGE>

     "indenture trustee" or "institutional trustee" means the Indenture
Trustee.

     "obligor" on the indenture securities means the Issuer and any other
obligor on the indenture securities.

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

     SECTION 1.3 Rules of Construction.

          Unless the context otherwise requires:

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

          (ii) an accounting term not otherwise defined has the meaning
     assigned to it in accordance with generally accepted accounting
     principles as in effect from time to time;

          (iii) "or" is not exclusive;

          (iv) "including" means including without limitation;

          (v) words in the singular include the plural and words in the plural
     include the singular; and

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

                                      10
<PAGE>

                                  ARTICLE II

                                   THE NOTES

     SECTION 2.1 Form. The Notes shall be designated as the "Household Home
Equity Loan Trust 2003-1, Closed-End Home Equity Loan Asset Backed Notes,
Series 2003-1." Each Note shall be in substantially the form set forth in
Exhibit A with such appropriate insertions, omissions, substitutions and other
variations as are required or permitted by this Indenture, and may have such
letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may, consistent herewith, be determined by the
officers executing such Notes, as evidenced by their execution thereof. Any
portion of the text of any Note may be set forth on the reverse thereof, with
an appropriate reference thereto on the face of the Note.

     The Definitive Notes shall be typewritten, printed, lithographed or
engraved or produced by any combination of these methods, all as determined by
the officers executing such Notes, as evidenced by their execution of such
Notes.

     The terms of the Notes are set forth in Exhibit A hereto. The terms of
the Notes are part of the terms of this Indenture.

     SECTION 2.2 Execution, Authentication, Delivery and Dating. The Notes
shall be executed on behalf of the Issuer by an Authorized Officer of the
Owner Trustee. The signature of any such Authorized Officer on the Notes may
be manual or facsimile.

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

     The Indenture Trustee shall upon receipt of an Issuer Order, authenticate
and deliver the Class A Notes for original issue in the principal amount equal
to $547,610,000 and the Class M Notes for original issue in the principal
amount equal to $105,872,000. The aggregate principal amount of the Class A
and Class M Notes outstanding at any time may not exceed such amounts.

     The Notes that are authenticated and delivered by the Indenture Trustee
to or upon the order of the Issuer on the Closing Date shall be dated August
28, 2003. All other Notes that are authenticated after the Closing Date for
any other purpose under the Indenture shall be dated the date of their
authentication. The Notes shall be issuable as registered Notes in the minimum
denomination of $25,000 and multiples of $1,000 in excess thereof.

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

                                      11
<PAGE>

     SECTION 2.3 Registration; Registration of Transfer and Exchange. The
Issuer shall cause to be kept a register (the "Note Register") in which,
subject to such reasonable regulations as it may prescribe, the Issuer shall
provide for the registration of Notes and the registration of transfers of
Notes. The Indenture Trustee initially shall be the "Note Registrar" for the
purpose of registering Notes and transfers of Notes as herein provided. Upon
any resignation of any Note Registrar, the Issuer shall promptly appoint a
successor or, if it elects not to make such an appointment, assume the duties
of the Note Registrar.

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

     Upon surrender for registration of transfer of any Note at the office or
agency of the Issuer to be maintained as provided in Section 3.2 hereof, the
Owner Trustee on behalf of the Issuer shall execute, and the Indenture Trustee
shall authenticate and the Noteholder shall obtain from the Indenture Trustee,
in the name of the designated transferee or transferees, one or more new Notes
in any authorized denominations, of a like aggregate principal amount.

     At the option of the Holder, Notes may be exchanged for other Notes in
any authorized denominations, of a like aggregate principal amount, upon
surrender of the Notes to be exchanged at such office or agency. Whenever any
Notes are so surrendered for exchange, the Issuer shall execute, and the
Indenture Trustee shall authenticate and the Noteholder shall obtain from the
Indenture Trustee, the Notes which the Noteholder making the exchange is
entitled to receive.

     All Notes issued upon any registration of transfer or exchange of Notes
shall be the valid obligations of the Issuer, evidencing the same debt, and
entitled to the same benefits under this Indenture, as the Notes surrendered
upon such registration of transfer or exchange.

     Every Note presented or surrendered for registration of transfer or
exchange shall be duly endorsed by, or be accompanied by a written instrument
of transfer in form satisfactory to the Indenture Trustee duly executed by,
the Holder thereof or such Holder's attorney duly authorized in writing, with
such signature guaranteed by an "eligible guarantor institution" meeting the
requirements of the Note Registrar, which requirements include membership or
participation in the Securities Transfer Agent's Medallion Program ("STAMP")
or such other "signature guarantee program" as may be determined by the Note
Registrar in addition to, or in substitution for, STAMP, all in accordance
with the Exchange Act.

     No service charge shall be made to a Holder for any registration of
transfer or exchange of Notes, but the Issuer may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed
in connection with any registration of transfer or

                                      12
<PAGE>

exchange of Notes, other than exchanges pursuant to Section 2.4 or Section 9.6
hereof not involving any transfer.

     SECTION 2.4 Mutilated, Destroyed, Lost or Stolen Notes. If (i) any
mutilated Note is surrendered to the Indenture Trustee, or the Indenture
Trustee receives evidence to its satisfaction of the destruction, loss or
theft of any Note, and (ii) there is delivered to the Indenture Trustee such
security or indemnity as may be reasonably required by it to hold the Issuer
and the Indenture Trustee harmless, then, in the absence of notice to the
Issuer, the Note Registrar or the Indenture Trustee that such Note has been
acquired by a bona fide purchaser, and an Authorized Officer of the Owner
Trustee shall execute, and upon its request the Indenture Trustee shall
authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Note, a replacement Note; provided, however, that if
any such destroyed, lost or stolen Note, but not a mutilated Note, shall have
become or within seven days shall be due and payable, or shall have been
called for redemption, instead of issuing a replacement Note, the Issuer may
pay such destroyed, lost or stolen Note when so due or payable or upon the
Redemption Date without surrender thereof. If, after the delivery of such
replacement Note or payment of a destroyed, lost or stolen Note pursuant to
the proviso to the preceding sentence, a bona fide purchaser of the original
Note in lieu of which such replacement Note was issued presents for payment
such original Note, the Issuer and the Indenture Trustee shall be entitled to
recover such replacement Note (or such payment) from the Person to whom it was
delivered or any Person taking such replacement Note from such Person to whom
such replacement Note was delivered or any assignee of such Person, except a
bona fide purchaser, and shall be entitled to recover upon the security or
indemnity provided therefor to the extent of any loss, damage, cost or expense
incurred by the Issuer or the Indenture Trustee in connection therewith.

     Upon the issuance of any replacement Note under this Section 2.4, the
Issuer may require the payment by the Holder of such Note of a sum sufficient
to cover any tax or other governmental charge that may be imposed in relation
thereto and any other reasonable expenses (including the fees and expenses of
the Indenture Trustee) connected therewith.

     Every replacement Note issued pursuant to this Section 2.4 in replacement
of any mutilated, destroyed, lost or stolen Note shall constitute an original
additional contractual obligation of the Issuer, whether or not the mutilated,
destroyed, lost or stolen Note shall be at any time enforceable by anyone, and
shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.

     The provisions of this Section 2.4 are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Notes.

     SECTION 2.5 Persons Deemed Owner. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Indenture Trustee and
any agent of the Issuer or the Indenture Trustee may treat the Person in whose
name any Note is registered (as of the day of determination) as the owner of
such Note for the purpose of receiving payments of principal of and interest
on, if any, such Note and for all other purposes whatsoever, whether or not
such

                                      13
<PAGE>

Note be overdue, and none of the Issuer, the Indenture Trustee or any agent of
the Issuer or the Indenture Trustee shall be affected by notice to the
contrary.

     SECTION 2.6 Payment of Principal and Interest; Defaulted Interest.

     (a) Each Note shall accrue interest at the related Note Rate and such
interest shall be payable on each Payment Date as specified in Exhibit A
hereto, subject to Section 3.1 hereof. Any installment of interest or
principal, if any, payable on any Note that is punctually paid or duly
provided for by the Issuer on the applicable Payment Date shall be paid to the
Person in whose name such Note (or one or more Predecessor Notes) is
registered on the Record Date in the manner set forth in Section 5.01(c) of
the Sale and Servicing Agreement.

     (b) The principal of each Note shall be payable in installments on each
Payment Date as provided in the forms of the Notes set forth in Exhibit A
hereto. Notwithstanding the foregoing, the entire unpaid principal amount of
the Notes shall be due and payable, if not previously paid, on the earliest of
(i) the Final Scheduled Payment Date, (ii) the Redemption Date or (iii) the
date on which an Event of Default shall have occurred and be continuing, if
the Indenture Trustee or the Holders of Notes representing not less than
66-2/3% of the Outstanding Amount of the Notes have declared the Notes to be
immediately due and payable in the manner provided in Section 5.2 hereof. All
principal payments on the Notes shall be in the manner set forth in the Sale
and Servicing Agreement. The Indenture Trustee shall notify the Person in
whose name a Note is registered at the close of business on the Record Date
preceding the Payment Date on which the Issuer expects that the final
installment of principal of and interest on such Note will be paid. Such
notice shall be mailed or transmitted by facsimile prior to such final Payment
Date and shall specify that such final installment will be payable only upon
presentation and surrender of such Note and shall specify the place where such
Note may be presented and surrendered for payment of such installment. Notices
in connection with redemptions of Notes shall be mailed to Noteholders as
provided in Section 8.01 of the Sale and Servicing Agreement.

     SECTION 2.7 Cancellation. All Notes surrendered for payment, registration
of transfer, exchange or redemption shall, if surrendered to any Person other
than the Indenture Trustee, be delivered to the Indenture Trustee and shall be
promptly canceled by the Indenture Trustee. The Issuer may at any time deliver
to the Indenture Trustee for cancellation any Notes previously authenticated
and delivered hereunder which the Issuer may have acquired in any manner
whatsoever, and all Notes so delivered shall be promptly canceled by the
Indenture Trustee. No Notes shall be authenticated in lieu of or in exchange
for any Notes canceled as provided in this Section, except as expressly
permitted by this Indenture. All canceled Notes may be held or disposed of by
the Indenture Trustee in accordance with its standard retention or disposal
policy as in effect at the time unless the Issuer shall direct by an Issuer
Order that they be destroyed or returned to it; provided, that such Issuer
Order is timely and the Notes have not been previously disposed of by the
Indenture Trustee.

     SECTION 2.8 [Reserved].

     SECTION 2.9 Release of Trust Estate.

                                      14
<PAGE>

     (a) Except as otherwise provided in subsections (b) and (c) of this
Section 2.9 and Section 11.1 hereof and the terms of the Transaction
Documents, the Indenture Trustee shall release property from the lien of this
Indenture only upon receipt of an Issuer Request accompanied by an Officer's
Certificate, an Opinion of Counsel and Independent Certificates in accordance
with TIA Sections 314(c) and 314(d)(l) or an Opinion of Counsel in lieu of
such Independent Certificates to the effect that the TIA does not require any
such Independent Certificates.

     (b) The Master Servicer, on behalf of the Issuer, shall be entitled to
obtain a release from the lien of this Indenture for any Home Equity Loan and
the related Mortgaged Property at any time in accordance with the provisions
of Section 3.08 of the Sale and Servicing Agreement.

     (c) The Indenture Trustee shall, if requested by the Master Servicer,
temporarily release to the Master Servicer the Indenture Trustee's Mortgage
File pursuant to the provisions of Section 3.08 of the Sale and Servicing
Agreement upon compliance by the Master Servicer of the provisions thereof
provided that the Indenture Trustee's Mortgage File shall have been stamped to
signify the Issuer's pledge to the Indenture Trustee under the Indenture.

     SECTION 2.10 Book-Entry Notes. The Notes, upon original issuance, will be
issued in the form of typewritten Notes representing the Book-Entry Notes, to
be delivered to The Depository Trust Company, the initial Clearing Agency or
its custodian, by, or on behalf of, the Issuer. The Book-Entry Notes shall be
registered initially on the Note Register in the name of Cede & Co., the
nominee of the initial Clearing Agency, and no Note Owner thereof will receive
a definitive Note representing such Note Owner's interest in such Note, except
as provided in Section 2.12 below. Unless and until definitive, fully
registered Notes (the "Definitive Notes") have been issued to such Note Owners
pursuant to Section 2.12 below:

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

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

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

          (iv) the rights of Note Owners shall be exercised only through the
     Clearing Agency and shall be limited to those established by law and
     agreements between such Note Owners and the Clearing Agency and/or the
     Clearing Agency Participants pursuant to the Note Depository Agreement.
     Unless and until Definitive Notes are issued pursuant to Section 2.12
     below, the initial Clearing Agency will make book-entry transfers among
     the Clearing Agency Participants and receive and transmit payments of
     principal of and interest on the Notes to such Clearing Agency
     Participants; and

                                      15
<PAGE>

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

     SECTION 2.11 Notices to Clearing Agency. Whenever a notice or other
communication to the Noteholders is required under this Indenture, unless and
until Definitive Notes shall have been issued to such Note Owners pursuant to
Section 2.12, the Indenture Trustee shall give all such notices and
communications specified herein to be given to Holders of the Notes, to the
Clearing Agency, and shall have no obligation to such Note Owners.

     SECTION 2.12 Definitive Notes. If (i) the Clearing Agency or the
Depositor advises the Indenture Trustee in writing that the Clearing Agency is
no longer willing, qualified or able to properly discharge its
responsibilities with respect to the Book-Entry Notes and the Clearing Agency
or the Depositor, the Issuer or the Indenture Trustee is unable to locate a
qualified successor, (ii) the Depositor at its option advises the Indenture
Trustee in writing that it elects to terminate the book-entry system through
the Clearing Agency or (iii) after the occurrence of an Event of Default,
Owners of the Book-Entry Notes representing beneficial interests aggregating
at least 51% of the Outstanding Amount of such Notes advise the Clearing
Agency in writing that the continuation of a book-entry system through the
Clearing Agency is no longer in the best interests of such Note Owners, then
the Clearing Agency shall notify all Note Owners and the Indenture Trustee of
the occurrence of such event and of the availability of Definitive Notes to
Note Owners requesting the same. Upon surrender to the Indenture Trustee of
the typewritten Notes representing the Book-Entry Notes by the Clearing
Agency, accompanied by registration instructions, the Issuer shall execute and
the Indenture Trustee shall authenticate the Definitive Notes in accordance
with the instructions of the Clearing Agency. None of the Issuer, the Note
Registrar or the Indenture Trustee shall be liable for any delay in delivery
of such instructions and may conclusively rely on, and shall be protected in
relying on, such instructions. Upon the issuance of Definitive Notes, the
Indenture Trustee shall recognize the Holders of the Definitive Notes as
Noteholders.

     SECTION 2.13 Tax Treatment. The Issuer has entered into this Indenture,
and the Notes will be issued, with the intention that, for all tax purposes,
the Notes will qualify as indebtedness secured by the Trust Estate. The
Issuer, by entering into this Indenture, and each Noteholder, by its
acceptance of a Note (and each Note Owner by its acceptance of an interest in
the applicable Book-Entry Note), agree to treat the Notes for all purposes as
indebtedness of the Issuer.

     SECTION 2.14 ERISA Representation. Each Person that acquires a Note shall
be required to represent, or in the case of a Book-Entry Note, will be deemed
to represent by its acceptance of the Note, that (i) it is not, and is not
acquiring the Note on behalf of or with "plan assets" (as determined under
U.S. Department of Labor Regulations found at 29 C.F.R. ss.2510.3-101 or
otherwise) of an employee benefit plan or other plan that is subject to Title
I of ERISA or

                                      16
<PAGE>

Section 4975 of the Code or any substantially similar federal, state or local
law ("Similar Law"), or (ii) its acquisition and holding of the Note are
eligible for relief under Prohibited Transaction Class Exemption ("PTCE")
84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 or a similar exemption,
or in the case of a plan subject to Similar Law, do not give rise to a
nonexempt prohibited violation of that Similar Law.

                                      17
<PAGE>

                                  ARTICLE III

                                   COVENANTS

     SECTION 3.1 Payment of Principal and Interest. The Issuer will duly and
punctually pay (or will cause to be duly and punctually paid) the principal of
and interest, if any, on the Notes in accordance with the terms of the Notes
and this Indenture. Without limiting the foregoing, the Indenture Trustee
shall, pursuant to Section 5.01 of the Sale and Servicing Agreement, pay all
amounts on deposit in the Collection Account on each Payment Date deposited
therein pursuant to the Sale and Servicing Agreement, and held therein for
distribution to the Class A Noteholders and the Class M Noteholders for the
benefit of the Class A Noteholders and the Class M Noteholders, respectively.
Amounts properly withheld under the Code by any Person from a payment to any
Noteholder of interest and/or principal shall be considered as having been
paid by the Issuer to such Noteholder for all purposes of this Indenture.

     The Notes shall be non-recourse obligations of the Issuer and shall be
limited in right of payment to amounts available from the Collateral, as
provided in this Indenture. The Issuer shall not otherwise be liable for
payments on the Notes. If any other provision of this Indenture shall be
deemed to conflict with the provisions of this Section 3.1, the provisions of
this Section 3.1 shall control.

     SECTION 3.2 Maintenance of Office or Agency. The Issuer will maintain in
Illinois an office or agency where Notes may be surrendered for registration
of transfer or exchange, and where notices and demands to or upon the Issuer
in respect of the Notes and this Indenture may be served. The Issuer hereby
initially appoints the Indenture Trustee to serve as its agent for the
foregoing purposes and to serve as Paying Agent with respect to the Notes. If
at any time the Issuer shall fail to maintain any such office or agency or
shall fail to furnish the Indenture Trustee with the address thereof, such
surrenders, notices and demands may be made or served at the Corporate Trust
Office, and the Issuer hereby appoints the Indenture Trustee as its agent to
receive all such surrenders, notices and demands.

     SECTION 3.3 Money for Payments to Be Held in Trust. As provided in
Section 8.2(a) and (b), all payments of amounts due and payable with respect
to any Notes that are to be remitted from amounts withdrawn from the
Collection Account pursuant to Section 8.2(c) shall be made on behalf of the
Issuer by the Indenture Trustee or by the Paying Agent, and no amounts so
withdrawn from the Collection Account for payments on the Notes shall be paid
over to the Issuer.

     Any Paying Agent shall be appointed by Issuer Order with written notice
thereof to the Indenture Trustee. Any Paying Agent appointed by the Issuer
shall be a Person who would be eligible to be Indenture Trustee hereunder as
provided in Section 6.11 hereof. The Issuer shall not appoint any Paying Agent
(other than the Indenture Trustee) which is not, at the time of such
appointment, a Depository Institution.

                                      18
<PAGE>

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

          (i) hold all sums held by it for the payment of amounts due with
     respect to the Notes in trust for the benefit of the Persons entitled
     thereto until such sums shall be paid to such Persons or otherwise
     disposed of as herein provided and pay such sums to such Persons as
     herein provided;

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

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

          (iv) immediately resign as a Paying Agent and forthwith pay to the
     Indenture Trustee all sums held by it in trust for the payment of Notes
     if at any time it ceases to meet the standards required to be met by a
     Paying Agent at the time of its appointment; and

          (v) comply with all requirements of the Code with respect to the
     withholding from any payments made by it on any Notes of any applicable
     withholding taxes imposed thereon and with respect to any applicable
     reporting requirements in connection therewith; provided, however, that
     with respect to withholding and reporting requirements applicable to
     original issue discount (if any) on the Notes, the Issuer shall have
     first provided the calculations pertaining thereto to the Indenture
     Trustee.

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

     Any termination and release of a Trust Estate shall be done in accordance
with the provisions of Section 8.01 of the Sale and Servicing Agreement.

     SECTION 3.4 Existence.

     (a) Subject to Section 3.4(b) below, the Issuer will keep in full effect
its existence, rights and franchises as a statutory trust under the laws of
the State of Delaware (unless it becomes, or any successor Issuer hereunder is
or becomes, organized under the laws of any other State or of the United
States of America, in which case the Issuer will keep in full effect its
existence, rights

                                      19
<PAGE>

and franchises under the laws of such other jurisdiction) and will obtain and
preserve its qualification to do business in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Indenture, the Notes and the Trust Estate.

     (b) Any successor to the Owner Trustee appointed pursuant to Section 10.2
of the Trust Agreement shall be the successor Owner Trustee under this
Indenture without the execution or filing of any paper, instrument or further
act to be done on the part of the parties hereto.

     (c) Upon any consolidation or merger of or other succession to the Owner
Trustee, the Person succeeding to the Owner Trustee under the Trust Agreement
may exercise every right and power of the Owner Trustee under this Indenture
with the same effect as if such Person had been named as the Owner Trustee
herein.

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

          (i) provide further assurance with respect to a Grant of all or any
     portion of the related Trust Estate;

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

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

          (iv) enforce any rights with respect to the Trust Estate; or

          (v) preserve and defend title to the Trust Estate and the rights of
     the Indenture Trustee and the Noteholders in such Trust Estate against
     the claims of all persons and parties.

     SECTION 3.6 Annual Opinions as to the Trust Estate.

     On or before March 31 in each calendar year, beginning in 2004, the
Issuer shall furnish to the Indenture Trustee an Opinion of Counsel either
stating that, in the opinion of such counsel, such action has been taken with
respect to the recording, filing, re-recording and refiling of this Indenture,
any indentures supplemental hereto and any other requisite documents and with
respect to the execution and filing of any financing statements and
continuation statements as is necessary to maintain the lien and security
interest created by this Indenture and reciting the details of such action or
stating that in the opinion of such counsel no such action is necessary to
maintain such lien and security interest. Such Opinion of Counsel shall also
describe the recording, filing, re-recording and refiling of this Indenture,
any indentures supplemental hereto and any other requisite documents and the
execution and filing of any financing statements and

                                      20
<PAGE>

continuation statements that will, in the opinion of such counsel, be required
to maintain the lien and security interest of this Indenture until March 31 of
the following calendar year.

     SECTION 3.7 Performance of Obligations; Servicing of Home Equity Loans.

     (a) The Issuer will not take any action and will use its best efforts not
to permit any action to be taken by others that would release any Person from
any of such Person's material covenants or obligations under any instrument or
agreement included in the Trust Estate or that would result in the amendment,
hypothecation, subordination, termination or discharge of, or impair the
validity or effectiveness of, any such instrument or agreement, except as
expressly provided in this Indenture, the Sale and Servicing Agreement or such
other instrument or agreement.

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

     (c) The Issuer will punctually perform and observe all of its obligations
and agreements contained in this Indenture, the Transaction Documents and in
the instruments and agreements included in the Trust Estate, including but not
limited to (i) filing or causing to be filed all UCC financing statements and
continuation statements required to be filed by the terms of this Indenture,
the Home Equity Loan Purchase Agreement and the Sale and Servicing Agreement
and (ii) recording or causing to be recorded all Mortgages, Assignments of
Mortgage, all intervening Assignments of Mortgage and all assumption and
modification agreements required to be recorded by the terms of the Sale and
Servicing Agreement and the Home Equity Loan Purchase Agreement, in accordance
with and within the time periods provided for in this Indenture and/or the
Sale and Servicing Agreement, as applicable. Except as otherwise expressly
provided therein, the Issuer shall not waive, amend, modify, supplement or
terminate any Transaction Document or any provision thereof without the
consent of the Indenture Trustee and the Majority Noteholder or such other
percentage of Noteholders as is set forth in the applicable Transaction
Document.

     (d) Subject to the terms of the Sale and Servicing Agreement, if the
Issuer shall have knowledge of the occurrence of an Master Servicer
Termination Event under the Sale and Servicing Agreement, the Issuer shall
promptly notify the Indenture Trustee, the Depositor, the Master Servicer and
the Rating Agencies thereof, and shall specify in such notice the action, if
any, the Master Servicer is taking with respect of such default. If such a
Master Servicer Termination Event shall arise from the failure of the Master
Servicer to perform any of its duties or obligations under the Sale and
Servicing Agreement with respect to the Home Equity Loans, the Issuer shall
take all reasonable steps available to it to remedy or cause to be remedied
such failure.

     (e) Subject to the terms of the Sale and Servicing Agreement, as promptly
as possible after the giving of notice of termination to the Master Servicer
of the Master Servicer's rights and powers pursuant to Section 7.01 of the
Sale and Servicing Agreement, a successor master

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<PAGE>

servicer (the "Successor Master Servicer") shall be appointed pursuant to
Section 7.02 of the Sale and Servicing Agreement. If the Indenture Trustee
shall succeed to the Master Servicer's duties as master servicer of the Home
Equity Loans as provided herein, it shall do so in its individual capacity and
not in its capacity as Indenture Trustee and, accordingly, the provisions of
Article VI hereof shall be inapplicable to the Indenture Trustee in its duties
as successor Master Servicer and the servicing of the Home Equity Loans. In
case the Indenture Trustee shall become successor Master Servicer under the
Sale and Servicing Agreement, the Indenture Trustee shall be entitled to
appoint as Successor Master Servicer any one of its Affiliates, provided that
it shall be fully liable for the actions and omissions of such Affiliate in
such capacity as Successor Master Servicer.

     (f) Without derogating from the absolute nature of the assignment granted
to the Indenture Trustee under this Indenture or the rights of the Indenture
Trustee hereunder, the Issuer agrees (i) that it will not, without the prior
written consent of the Indenture Trustee (which consent shall not be
unreasonably withheld), amend, modify, waive, supplement, terminate or
surrender, or agree to any amendment, modification, supplement, termination,
waiver or surrender of, the terms of the Trust Estate (except to the extent
otherwise provided in the Sale and Servicing Agreement or the other
Transaction Documents), or waive timely performance or observance by the
Master Servicer or the Depositor under the Sale and Servicing Agreement; and
(ii) that any such amendment not otherwise provided for in the Sale and
Servicing Agreement or any other Transaction Document shall not (A) reduce in
any manner the amount of, or delay the timing of, collections of payments on
home equity loans, (B) reduce in any manner the amount of, or delay the timing
of, payments that are required to be made on a Note without the consent of the
affected Noteholder, (C) impair the right of any Noteholder to institute suit
for the enforcement of the provisions of the Agreement, or (D) reduce the
aforesaid percentage of the Notes that is required to consent to any such
amendment, without the consent of the Holders of all the outstanding Notes. If
any such amendment, modification, supplement or waiver shall be so consented
to by the Indenture Trustee or the Majority Noteholder (or such other
percentage of Noteholders as required by the applicable Transaction Document),
the Issuer agrees, promptly following a request by the Indenture Trustee to do
so, to execute and deliver, in its own name and at its own expense, such
agreements, instruments, consents and other documents as the Indenture Trustee
may deem necessary or appropriate in the circumstances.

     SECTION 3.8 Negative Covenants. So long as any Notes are Outstanding, the
Issuer shall not:

          (i) except as expressly permitted by this Indenture or the Sale and
     Servicing Agreement, sell, transfer, exchange or otherwise dispose of any
     of the properties or assets of the Issuer, including those included in
     the Trust Estate, unless directed to do so by the Indenture Trustee;

          (ii) claim any credit on, or make any deduction from the principal
     or interest payable in respect of, the Notes (other than amounts properly
     withheld from such payments under the Code) or assert any claim against
     any present or former Noteholder

                                      22
<PAGE>

     by reason of the payment of the taxes levied or assessed upon any part of
     the related Trust Estate;

          (iii) engage in any business or activity other than as permitted by
     the Trust Agreement or other than in connection with, or relating to, the
     issuance of Notes pursuant to this Indenture and the Ownership Interest
     pursuant to the Trust Agreement, or amend the Trust Agreement as in
     effect on the Closing Date other than in accordance with Section 11.1
     thereof;

          (iv) issue debt obligations under any other indenture;

          (v) incur or assume any indebtedness or guaranty any indebtedness of
     any Person, except for such indebtedness as may be incurred by the Issuer
     in connection with the issuance of the Notes pursuant to this Indenture
     or as otherwise may be permitted by the Transaction Documents;

          (vi) dissolve or liquidate in whole or in part or merge or
     consolidate with any other Person;

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

          (viii) [reserved]; or

          (ix) take any other action or fail to take any action which may
     cause the Issuer to be treated as (a) an association pursuant to Section
     7701 of the Code and the corresponding regulations, (b) a publicly traded
     partnership taxable as a corporation pursuant to Section 7704 of the Code
     and the corresponding regulations or (c) a taxable mortgage pool pursuant
     to Section 7701(i) of the Code and the corresponding regulations.

     SECTION 3.9 Annual Statement as to Compliance. The Issuer will deliver to
the Indenture Trustee, within 120 days after the end of each fiscal year of
the Issuer (commencing with the fiscal year 2003), an Officer's Certificate
stating, as to the Authorized Officer signing such Officer's Certificate,
that:

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<PAGE>

          (i) a review of the activities of the Issuer during such year and of
     its performance under this Indenture has been made under such Authorized
     Officer's supervision; and

          (ii) to the best of such Authorized Officer's knowledge, based on
     such review, the Issuer has complied with all conditions and covenants
     under this Indenture throughout such year, or, if there has been a
     default in its compliance with any such condition or covenant, specifying
     each such default known to such Authorized Officer and the nature and
     status thereof.

     SECTION 3.10 Covenants of the Issuer.

     All covenants of the Issuer in this Indenture are covenants of the Issuer
and are not covenants of the Owner Trustee. The Owner Trustee is, and any
successor Owner Trustee under the Trust Agreement will be, entering into this
Indenture solely as Owner Trustee under the Trust Agreement and not in its
respective individual capacity, and in no case whatsoever shall the Owner
Trustee or any such successor Owner Trustee be personally liable on, or for
any loss in respect of, any of the statements, representations, warranties or
obligations of the Issuer hereunder, as to all of which the parties hereto
agree to look solely to the property of the Issuer.

     SECTION 3.11 Master Servicer's Obligations. The Issuer shall cause the
Master Servicer to comply with its obligations under the terms of the Sale and
Servicing Agreement.

     SECTION 3.12 Restricted Payments. The Issuer shall not, directly or
indirectly, (i) pay any dividend or make any distribution (by reduction of
capital or otherwise), whether in cash, property, securities or a combination
thereof, to the Owner Trustee, the Delaware Trustee or any owner of a
beneficial interest in the Issuer or otherwise with respect to any ownership
or equity interest or security in or of the Issuer or to the Master Servicer,
(ii) redeem, purchase, retire or otherwise acquire for value any such
ownership or equity interest or security or (iii) set aside or otherwise
segregate any amounts for any such purpose; provided, however, that the Issuer
may make, or cause to be made (x) payments or distributions to the Master
Servicer, the Indenture Trustee, the Owner Trustee, the Delaware Trustee, the
Ownership Interest and the Noteholders as contemplated by, and to the extent
funds are available for such purpose under, the Sale and Servicing Agreement
or the Trust Agreement. The Issuer will not, directly or indirectly, make or
cause to be made payments to or distributions from the Collection Account
except in accordance with this Indenture and the Transaction Documents.

     SECTION 3.13 Treatment of Notes as Debt for All Purposes.

     The Issuer shall treat the Notes as indebtedness for all purposes.

     SECTION 3.14 Notice of Events of Default. The Issuer shall give the
Indenture Trustee and the Rating Agencies prompt written notice of each Event
of Default hereunder, each Master Servicer Termination Event under the Sale
and Servicing Agreement, each default on the part of the Master Servicer of
its obligations under the Sale and Servicing Agreement and each default on the
part of the Depositor of its obligations under the Sale and Servicing
Agreement.

                                      24
<PAGE>

     SECTION 3.15 Further Instruments and Acts. Upon request of the Indenture
Trustee, the Issuer will execute and deliver such further instruments and do
such further acts as may be reasonably necessary or proper to carry out more
effectively the purpose of this Indenture.

     SECTION 3.16 Issuer May Consolidate, etc.

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

          (i) the Person (if other than the Issuer) formed by or surviving
     such consolidation or merger shall be a Person organized and existing
     under the laws of the United States of America or any state or the
     District of Columbia and shall expressly assume, by an indenture
     supplemental hereto, executed and delivered to the Indenture Trustee, in
     form reasonably satisfactory to the Indenture Trustee, the due and
     punctual payment of the principal of and interest on all Notes and to the
     Paying Agent, on behalf of the holder of the Ownership Interest and the
     performance or observance of every agreement and covenant of this
     Indenture on the part of the Issuer to be performed or observed, all as
     provided herein;

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

          (iii) each Rating Agency shall have notified the Issuer that such
     transaction will not cause a reduction or withdrawal by such Rating
     Agency of either of its then current ratings of the Notes;

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

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

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

     (b) The Issuer shall not convey or transfer any of its properties or
assets, including those included in any Trust Estate, to any Person, unless:

          (i) the Person that acquires by conveyance or transfer the
     properties and assets of the Issuer, the conveyance or transfer of which
     is hereby restricted, shall (A) be a United States citizen or a Person
     organized and existing under the laws of the United States of America or
     any state, (B) expressly assumes, by an indenture supplemental hereto,
     executed and delivered to the Indenture Trustee, in form satisfactory to
     the

                                      25
<PAGE>

     Indenture Trustee, the due and punctual payment of the principal of and
     interest on all Notes and the performance or observance of every
     agreement and covenant of this Indenture on the part of the Issuer to be
     performed or observed, all as provided herein, (C) expressly agrees by
     means of such supplemental indenture that all right, title and interest
     so conveyed or transferred shall be subject and subordinate to the rights
     of Holders of the Notes, (D) unless otherwise provided in such
     supplemental indenture, expressly agrees to indemnify, defend and hold
     harmless the Issuer against and from any loss, liability or expense
     arising under or related to this Indenture and the Notes and (E)
     expressly agrees by means of such supplemental indenture that such Person
     (or if a group of Persons, then one specified Person) shall make all
     filings with the Commission (and any other appropriate Person) required
     by the Exchange Act in connection with the Notes;

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

          (iii) each Rating Agency shall have notified the Issuer that such
     transaction will not cause a reduction or withdrawal by such Rating
     Agency of either of its then current ratings of the Notes;

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

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

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

     SECTION 3.17 Successor or Transferee.

     (a) Upon any consolidation or merger of the Issuer in accordance with
Section 3.16(a) above, the Person formed by or surviving such consolidation or
merger (if other than the Issuer) shall succeed to, and be substituted for,
and may exercise every right and power of, the Issuer under this Indenture
with the same effect as if such Person had been named as the Issuer herein.

     (b) Upon a conveyance or transfer of all the assets and properties of the
Issuer pursuant to Section 3.16(b) above, the Issuer shall be released from
every covenant and agreement (except such obligations that survive such
transfer) of this Indenture to be observed or performed on the part of the
Issuer with respect to the Notes immediately upon the delivery of written
notice to the Indenture Trustee of such conveyance or transfer.

                                      26
<PAGE>

     SECTION 3.18 No Other Business. The Issuer shall not engage in any
business other than financing, purchasing, owning, selling and managing the
Home Equity Loans, owning Preferred Stock of the Depositor and the issuance of
the Notes in the manner contemplated by this Indenture and the Transaction
Documents and all activities incidental thereto.

     SECTION 3.19 No Borrowing. The Issuer shall not issue, incur, assume,
guarantee or otherwise become liable, directly or indirectly, for any
indebtedness except for the Notes.

     SECTION 3.20 Guarantees, Loans, Advances and Other Liabilities. Except as
contemplated by this Indenture or the other Transaction Documents, the Issuer
shall not make any loan or advance or credit to, or guarantee (directly or
indirectly or by an instrument having the effect of assuring another's payment
or performance on any obligation or capability of so doing or otherwise),
endorse or otherwise become contingently liable, directly or indirectly, in
connection with the obligations, stocks or dividends of, or own, purchase,
repurchase or acquire (or agree contingently to do so) any stock, obligations,
assets or securities of, or any other interest in, or make any capital
contribution to, any other Person.

     SECTION 3.21 Capital Expenditures. The Issuer shall not make any
expenditure (by long-term or operating lease or otherwise) for capital assets
(either realty or personalty).

     SECTION 3.22 Representations and Warranties of the Issuer. The Perfection
Representations shall be a part of this Indenture.

                                      27
<PAGE>

                                  ARTICLE IV

                          SATISFACTION AND DISCHARGE

     SECTION 4.1 Satisfaction and Discharge of Indenture. Subject to and in
accordance with Section 8.01 of the Sale and Servicing Agreement, this
Indenture shall cease to be of further effect with respect to the Notes
(except as to (i) rights of registration of transfer and exchange, (ii)
substitution of mutilated, destroyed, lost or stolen Notes, (iii) rights of
Noteholders to receive payments of principal thereof and interest thereon,
(iv) Sections 3.3, 3.4, 3.5, 3.8 and 3.10 hereof, (v) the rights, obligations
and immunities of the Indenture Trustee hereunder (including the rights of the
Indenture Trustee under Section 6.7 hereof and the obligations of the
Indenture Trustee under Section 4.2 hereof) and (vi) the rights of Noteholders
as beneficiaries hereof with respect to the property so deposited with the
Indenture Trustee payable to all or any of them), and the Indenture Trustee,
on demand of and at the expense of the Issuer, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture with
respect to the Notes, when all of the following have occurred:

     (A) either

     (1)  all Notes theretofore authenticated and delivered (other than (i)
          Notes that have been destroyed, lost or stolen and that have been
          replaced or paid as provided in Section 2.4 and (ii) Notes for whose
          payment money has theretofore been deposited in trust or segregated
          and held in trust by the Issuer and thereafter repaid to the Issuer
          or discharged from such trust, as provided in Section 3.3 above)
          have been delivered to the Indenture Trustee for cancellation; or

     (2)  all Notes not theretofore delivered to the Indenture Trustee for
          cancellation

               a.   have become due and payable,

               b.   will become due and payable within one year prior to the
                    Final Scheduled Payment Date, or

               c.   are to be called for redemption within one year under
                    arrangements satisfactory to the Indenture Trustee for the
                    giving of notice of redemption by the Indenture Trustee in
                    the name, and at the expense, of the Issuer,

and the Issuer, in the case of a., b. or c. above, has irrevocably deposited
or caused to be irrevocably deposited with the Indenture Trustee cash or
direct obligations of or obligations guaranteed by the United States of
America (which will mature prior to the date such amounts are payable), in
trust for such purpose, in an amount sufficient to pay and discharge the
entire indebtedness on such Notes not theretofore delivered to the Indenture
Trustee for cancellation when due to the Final Scheduled Payment Date or
Redemption Date (if Notes shall have been called for redemption pursuant to
Section 10.1 hereof), as the case may be;

                                      28
<PAGE>

     (B) the latest of (a) twelve months after payment in full of all
outstanding obligations under the Notes, (b) the payment in full of all unpaid
fees and expenses of the Indenture Trustee hereunder and the other Transaction
Documents, (c) the date on which the Issuer has paid or caused to be paid all
other sums payable hereunder by the Issuer, and (d) the date on which the
final resolution of any litigation against the Issuer regarding a preference
claim under the United States Bankruptcy Code (11 U.S.C.) has occurred; and

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

     SECTION 4.2 Application of Trust Money. All moneys deposited with the
Indenture Trustee pursuant to Sections 3.3 and 4.1 hereof shall be held in
trust and applied by it, in accordance with the provisions of the Sale and
Servicing Agreement, to the payment, either directly or through any Paying
Agent to the Holders of the particular Notes for the payment or redemption of
which such moneys have been deposited with the Indenture Trustee, of all sums
due and to become due thereon for principal and interest; but such moneys need
not be segregated from other funds except to the extent required herein or in
the Sale and Servicing Agreement or required by law.

     SECTION 4.3 [Reserved].

     SECTION 4.4 Repayment of Moneys Held by Paying Agent. In connection with
the satisfaction and discharge of this Indenture with respect to the Notes,
all moneys then held by any Paying Agent other than the Indenture Trustee
under the provisions of this Indenture with respect to such Notes shall, upon
demand of the Issuer, be paid to the Indenture Trustee to be held and applied
according to Section 3.3 above and thereupon such Paying Agent shall be
released from all further liability with respect to such moneys.

                                      29
<PAGE>

                                  ARTICLE V

                                   REMEDIES

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

     (a) default in the payment of any interest on any Note when the same
becomes due and payable, and continuance of such default for a period of five
(5) days; or

     (b) default in the payment in full of the principal of the Note Principal
Amounts of the Class A and Class M Notes on the Final Scheduled Payment Date;
or

     (c) default in the observance or performance of any covenant or agreement
of the Issuer made in this Indenture (other than a covenant or agreement, a
default in the observance or performance of which is elsewhere in this Section
5.1 specifically dealt with), or any representation or warranty of the Issuer
made in this Indenture, the Sale and Servicing Agreement or in any certificate
or other writing delivered pursuant hereto or in connection herewith proving
to have been incorrect in any material respect as of the time when the same
shall have been made and has a material adverse effect on Noteholders, and
such default shall continue or not be cured, or the circumstance or condition
in respect of which such misrepresentation or warranty was incorrect shall not
have been eliminated or otherwise cured, for a period of 60 days after there
shall have been given, by registered or certified mail, to the Issuer by the
Indenture Trustee or to the Issuer and the Indenture Trustee by the Holders of
at least 25% of the Outstanding Amount of the Notes, a written notice
specifying such default or incorrect representation or warranty and requiring
it to be remedied and stating that such notice is a notice of Default
hereunder; or

     (d) [reserved]; or

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

     (f) the commencement by the Issuer of a voluntary case under any
applicable federal or state bankruptcy, insolvency or other similar law now or
hereafter in effect, or the consent by the Issuer to the entry of an order for
relief in an involuntary case under any such law, or the consent by the Issuer
to the appointment or taking possession by a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official of the Issuer or for any
substantial part of the

                                      30
<PAGE>

Trust Estate, or the making by the Issuer of any general assignment for the
benefit of creditors, or the failure by the Issuer generally to pay its debts
as such debts become due, or the taking of any action by the Issuer in
furtherance of any of the foregoing.

     The Issuer shall deliver to the Indenture Trustee and the Transferor
within five days after the occurrence thereof, written notice in the form of
an Officer's Certificate of any event which with the giving of notice and the
lapse of time would become an Event of Default under clause (c) above, its
status and what action the Issuer is taking or proposes to take with respect
thereto.

     SECTION 5.2 Acceleration of Maturity; Rescission and Annulment. If an
Event of Default should occur and be continuing, then and in every such case
the Indenture Trustee may, and shall, upon the prior written direction of the
Holders of Notes representing not less than 66-2/3% of the Outstanding Amount
of the Notes, declare all the Notes to be immediately due and payable, by a
notice in writing to the Issuer (and to the Indenture Trustee if given by
Noteholders), and upon any such declaration the unpaid principal amount of
such Notes, together with accrued and unpaid interest thereon through the date
of acceleration, shall become immediately due and payable.

     At any time after such declaration of acceleration of maturity has been
made and before a judgment or decree for payment of the money due has been
obtained by the Indenture Trustee as hereinafter in this Article V provided,
the Majority Noteholder, by written notice to the Issuer and the Indenture
Trustee, may rescind and annul such declaration and its consequences if:

          (i) the Issuer has paid or deposited with the Indenture Trustee a
     sum sufficient to pay:

               (A) all payments of principal of and interest on all Notes and
          all other amounts that would then be due hereunder or upon such
          Notes if the Event of Default giving rise to such acceleration had
          not occurred; and

               (B) all sums paid or advanced by the Indenture Trustee
          hereunder and the reasonable compensation, expenses, disbursements
          and advances of the Indenture Trustee and its agents and counsel;
          and

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

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

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

     (a) The Issuer covenants that if (i) default occurs in the payment of any
interest on any Note when the same becomes due and payable, and such default
continues for a period of five

                                      31
<PAGE>

days, or (ii) default occurs in the payment of the principal of or any
installment of the principal of any Note when the same becomes due and
payable, and such default continues for a period of five days, the Issuer
will, upon demand of the Indenture Trustee, pay to the Indenture Trustee, for
the benefit of the Holders of the Notes, the whole amount then due and payable
on such Notes for principal and interest, with interest upon the overdue
principal and, to the extent payment at such rate of interest shall be legally
enforceable, upon overdue installments of interest at the rate borne by the
Notes and in addition thereto such further amount as shall be sufficient to
cover the costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Indenture Trustee
and its agents and counsel.

     (b) In case the Issuer shall fail forthwith to pay such amounts upon such
demand, the Indenture Trustee may, and shall at the direction of the Holders
of 66-2/3% of the Outstanding Amount of the Notes, institute a Proceeding for
the collection of the sums so due and unpaid, and may prosecute such
Proceeding to judgment or final decree, and may enforce the same against the
Issuer or other obligor upon such Notes and collect in the manner provided by
law out of the property of the Issuer or other obligor upon such Notes,
wherever situated, the moneys adjudged or decreed to be payable.

     (c) If an Event of Default occurs and is continuing, the Indenture
Trustee may, and shall at the written direction of the Holders of 66-2/3% of
the Outstanding Amount of the Notes, as more particularly provided in Section
5.4 below, proceed to protect and enforce its rights and the rights of the
Noteholders, by such appropriate Proceedings as the Indenture Trustee shall
deem most effective to protect and enforce any such rights, whether for the
specific enforcement of any covenant or agreement in this Indenture or in aid
of the exercise of any power granted herein, or to enforce any other proper
remedy or legal or equitable right vested in the Indenture Trustee by this
Indenture or by law.

     (d) In case there shall be pending, relative to the Issuer or any other
obligor upon the Notes or any Person having or claiming an ownership interest
in the Trust Estate, Proceedings under Title 11 of the United States Code or
any other applicable federal or state bankruptcy, insolvency or other similar
law, or in case a receiver, assignee or trustee in bankruptcy or
reorganization, liquidator, sequestrator or similar official shall have been
appointed for or taken possession of the Issuer or its property or such other
obligor or Person, or in case of any other comparable judicial Proceedings
relative to the Issuer or other obligor upon the Notes, or to the creditors or
property of the Issuer or such other obligor, the Indenture Trustee,
irrespective of whether the principal of any Notes shall then be due and
payable as therein expressed or by declaration or otherwise and irrespective
of whether the Indenture Trustee shall have made any demand pursuant to the
provisions of this Section 5.3, shall be entitled and empowered by
intervention in such Proceedings or otherwise:

          (i) to file and prove a claim or claims for the whole amount of
     principal and interest owing and unpaid in respect of the Notes and to
     file such other papers or documents as may be necessary or advisable in
     order to have the claims of the Indenture Trustee (including any claim
     for reasonable compensation to the Indenture Trustee, each predecessor
     Indenture Trustee and its agents, attorneys and counsel, and for

                                      32
<PAGE>

     reimbursement of all expenses and liabilities incurred, and all advances
     made, by the Indenture Trustee and each predecessor Indenture Trustee
     (except as a result of negligence or bad faith)), and of the Noteholders
     allowed in such Proceedings;

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

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

          (iv) to file such proofs of claim and other papers or documents as
     may be necessary or advisable in order to have the claims of the
     Indenture Trustee or the Holders of Notes allowed in any judicial
     proceedings relative to the Issuer, its creditors and its property; and
     any trustee, receiver, liquidator, custodian or other similar official in
     any such Proceeding is hereby authorized by each of such Noteholders to
     make payments to the Indenture Trustee and, in the event that the
     Indenture Trustee shall consent to the making of payments directly to
     such Noteholders, to pay to the Indenture Trustee such amounts as shall
     be sufficient to cover reasonable compensation to the Indenture Trustee,
     each predecessor Indenture Trustee and their respective agents, attorneys
     and counsel, and all other expenses and liabilities incurred, and all
     advances made, by the Indenture Trustee and each predecessor Indenture
     Trustee except as a result of negligence or bad faith.

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

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

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

                                      33
<PAGE>

     SECTION 5.4 Remedies; Priorities.

     (a) If an Event of Default shall have occurred and be continuing of which
a Responsible Officer of the Indenture Trustee has actual knowledge, the
Indenture Trustee may and, at the direction of the Holders of 66-2/3% of the
Outstanding Amount of the Notes shall, do one or more of the following
(subject to Section 5.5 below):

          (i) institute Proceedings in its own name and as trustee of an
     express trust for the collection of all amounts then payable on the
     related Notes or under this Indenture with respect thereto, whether by
     declaration or otherwise, enforce any judgment obtained, and collect from
     the Issuer and any other obligor upon such Notes moneys adjudged due;

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

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

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

provided, however, that the Indenture Trustee may not sell or otherwise
liquidate the Trust Estate following an Event of Default, unless (A) the
Indenture Trustee obtains the consent of the Holders of 100% of the
Outstanding Amount of the Notes, (B) the proceeds of such sale or liquidation
distributable to the Noteholders are sufficient to discharge in full all
amounts then due and unpaid upon such Notes for principal and interest or (C)
the Indenture Trustee determines that the Trust Estate will not continue to
provide sufficient funds for the payment of principal of and interest on the
Notes as they would have become due if the Notes had not been declared due and
payable, and the Indenture Trustee obtains the consent of the Holders of
66-2/3% of the Outstanding Amount of the Notes. In determining such
sufficiency or insufficiency with respect to clauses (B) and (C) above, the
Indenture Trustee may, but need not, obtain and rely upon an opinion of an
Independent investment banking or accounting firm of national reputation as to
the feasibility of such proposed action and as to the sufficiency of the Trust
Estate for such purpose.

     (b) If the Indenture Trustee collects any money or property pursuant to
this Article V, the Indenture Trustee and the Paying Agent shall pay out the
money or property in the following order:

          FIRST: to the Indenture Trustee for any costs or expenses incurred
     by it in connection with the enforcement of the remedies provided for in
     this Article V;

          SECOND: to the Class A Noteholders for amounts due and unpaid on the
     Class A Notes for interest (excluding Supplemental Interest Amounts) pro
     rata among the

                                      34
<PAGE>

     Holders of the Class A Notes, according to the amounts due and payable on
     such Class A Notes;

          THIRD: to the Class M Noteholders for amounts due and unpaid on the
     Class M Notes for interest (excluding Supplemental Interest Amounts) pro
     rata among the Holders of the Class M Notes, according to the amounts due
     and payable on such Class M Notes;

          FOURTH: to the Class A Noteholders for amounts due and unpaid on the
     Class A Notes for principal pro rata among the Holders of the Class A
     Notes according to the amounts due and payable until the Note Principal
     Amount of the Class A Notes is reduced to zero;

          FIFTH: to the Class M Noteholders for amounts due and unpaid on the
     Class M Notes for principal pro rata among the Holders of the Class M
     Notes according to the amounts due and payable until the Note Principal
     Amount of the Class M Notes is reduced to zero;

          SIXTH: to the Class A Noteholders and Class M Noteholders for any
     Supplemental Interest Amounts due and unpaid on the Class A Notes and
     Class M Notes pro rata among the Holders of the Class A Notes and Class M
     Notes, according to the Supplemental Interest Amounts due and payable on
     the Class A Notes and Class M Notes, respectively; and

          SEVENTH: to the Paying Agent for any amounts to be distributed, to
     the holder of the Ownership Interest, in the manner set forth in Section
     5.01 of the Sale and Servicing Agreement.

     The Indenture Trustee may fix a record date and payment date for any
payment to be made to the Noteholders pursuant to this Section 5.4. At least
15 days before such record date, the Indenture Trustee shall mail to each
Noteholder and the Issuer a notice that states the record date, the payment
date and the amount to be paid.

     SECTION 5.5 Optional Preservation of the Trust Estate. If the Notes have
been declared to be due and payable under Section 5.2 above following an Event
of Default and such declaration and its consequences have not been rescinded
and annulled, the Indenture Trustee may, and shall at the written direction of
Holders of 66-2/3% of the Outstanding Amount of the Notes, elect to maintain
possession of the Trust Estate. It is the desire of the parties hereto and the
Noteholders that there be at all times sufficient funds for the payment of
principal of and interest on the Notes (although the parties hereto understand
that there exists the possibility of a shortfall in collections of the Home
Equity Loans), and the Indenture Trustee shall take such desire into account
when determining whether or not to maintain possession of the Collateral. In
determining whether to maintain possession of the Collateral, the Indenture
Trustee may, but need not, obtain and rely upon an opinion of an Independent
investment banking or accounting firm of national reputation as to the
feasibility of such proposed action and as to the sufficiency of the
Collateral for such purpose.

                                      35
<PAGE>

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

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

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

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

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

     (e) no direction inconsistent with such written request has been given to
the Indenture Trustee during such 60-day period by the Majority Noteholder.

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

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

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

     SECTION 5.9 Rights and Remedies Cumulative. No right or remedy herein
conferred upon or reserved to the Indenture Trustee or to the Noteholders is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be

                                      36
<PAGE>

cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent
the concurrent assertion or employment of any other appropriate right or
remedy.

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

     SECTION 5.11 Control by Noteholders. The Holders of 66-2/3% of the
Outstanding Amount of the Notes shall have the right to direct the time,
method and place of conducting any Proceeding for any remedy available to the
Indenture Trustee with respect to the Notes or exercising any trust or power
conferred on the Indenture Trustee; provided that:

     (a) such direction shall not be in conflict with any rule of law or with
this Indenture;

     (b) subject to the express terms of Section 5.4 above, any direction to
the Indenture Trustee to sell or liquidate the Trust Estate shall be in
writing by the Holders of Notes representing not less than 100% of the
Outstanding Amount of the Notes;

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

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

     Notwithstanding the rights of the Noteholders set forth in this Section
5.11, subject to Section 6.1 hereof, the Indenture Trustee need not take any
action that it determines might involve it in liability or might materially
adversely affect the rights of any Noteholders not consenting to such action.

     SECTION 5.12 Waiver of Past Defaults. Prior to the declaration of the
acceleration of the maturity of the Notes as provided in Section 5.2 above,
the Majority Noteholder may waive any past Default or Event of Default and its
consequences except a Default (a) in the payment of principal of or interest
on any of the Notes or (b) in respect of a covenant or provision hereof that
cannot be modified or amended without the consent of the Holder of each Note.
In the case of any such waiver, the Issuer, the Indenture Trustee and the
Holders of the Notes shall be restored to their former positions and rights
hereunder, respectively; but no such waiver shall extend to any subsequent or
other Default or impair any right consequent thereto.

                                      37
<PAGE>

     Upon any such waiver, such Default shall cease to exist and be deemed to
have been cured and not to have occurred, and any Event of Default arising
therefrom shall be deemed to have been cured and not to have occurred, for
every purpose of this Indenture; but no such waiver shall extend to any
subsequent or other Default or Event of Default or impair any right consequent
thereto.

     SECTION 5.13 Undertaking for Costs. All parties to this Indenture agree,
and each Holder of any Note by such Holder's acceptance thereof shall be
deemed to have agreed, that any court may in its discretion require, in any
suit for the enforcement of any right or remedy under this Indenture, or in
any suit against the Indenture Trustee for any action taken, suffered or
omitted by it as Indenture Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may
in its discretion assess reasonable costs, including reasonable attorneys'
fees, against any party litigant in such suit, having due regard to the merits
and good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to (a) any suit instituted by the
Indenture Trustee, (b) any suit instituted by any Noteholder, or group of
Noteholders, in each case holding in the aggregate more than 10% of the
Outstanding Amount of the Notes or (c) any suit instituted by any Noteholder
for the enforcement of the payment of principal of or interest on any Note on
or after the respective due dates expressed in such Note and in this Indenture
(or, in the case of redemption, on or after the Redemption Date).

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

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

     SECTION 5.16 Performance and Enforcement of Certain Obligations.

     (a) Promptly following a request from the Indenture Trustee, the Issuer
shall take all such lawful action as the Indenture Trustee may request to
compel or secure the performance and observance by the Depositor and the
Master Servicer, as applicable, of each of their obligations to the Issuer
under or in connection with the Sale and Servicing Agreement, and to exercise
any and all rights, remedies, powers and privileges lawfully available to the
Issuer under or in

                                      38
<PAGE>

connection with the Sale and Servicing Agreement to the extent and in the
manner directed by the Indenture Trustee, including the transmission of
notices of default on the part of the Depositor or the Master Servicer
thereunder and the institution of legal or administrative actions or
proceedings to compel or secure performance by the Depositor or the Master
Servicer of each of their obligations under the Sale and Servicing Agreement.

     (b) If an Event of Default has occurred and is continuing, the Indenture
Trustee may, and at the written direction of the Holders of 66-2/3% of the
Outstanding Amount of the Notes shall, exercise all rights, remedies, powers,
privileges and claims of the Issuer against the Depositor or the Master
Servicer under or in connection with the Sale and Servicing Agreement,
including the right or power to take any action to compel or secure
performance or observance by the Depositor, the Master Servicer, as the case
may be, of each of their obligations to the Issuer thereunder and to give any
consent, request, notice, direction, approval, extension, or waiver under the
Sale and Servicing Agreement, and any right of the Issuer to take such action
shall be suspended.

                                      39
<PAGE>

                                  ARTICLE VI

                             THE INDENTURE TRUSTEE

     SECTION 6.1 Duties of Indenture Trustee.

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

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

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

          (ii) in the absence of bad faith on its part, the Indenture Trustee
     may conclusively rely, as to the truth of the statements and the
     correctness of the opinions expressed therein, upon certificates or
     opinions furnished to the Indenture Trustee and conforming to the
     requirements of this Indenture; however, the Indenture Trustee shall
     examine the certificates and opinions to determine whether or not they
     conform to the requirements of this Indenture. If any such amendment is
     found not to conform in any material respect to the requirements of this
     Indenture, the Indenture Trustee shall notify the Noteholders of such
     instrument in the event that the Indenture Trustee, after so requesting,
     does not receive a satisfactory corrected instrument.

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

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

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

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

     (d) Every provision of this Indenture that in any way relates to the
Indenture Trustee is subject to paragraphs (a), (b), (c) and (g) of this
Section 6.1.

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

                                      40
<PAGE>

     (f) Money held in trust by the Indenture Trustee shall be segregated from
other funds except to the extent permitted by law or the terms of this
Indenture or the Sale and Servicing Agreement.

     (g) No provision of this Indenture shall require the Indenture Trustee to
expend or risk its own funds or otherwise incur financial liability in the
performance of any of its duties hereunder or in the exercise of any of its
rights or powers, if it shall have reasonable grounds to believe that
repayment of such funds or adequate indemnity against such risk or liability
is not reasonably assured to it; and none of the provisions contained in this
Indenture shall in any event require the Indenture Trustee to perform, or be
responsible for the manner of performance of, any of the obligations of the
Master Servicer, the Issuer or Transferor under this Indenture except during
such time, if any, as the Indenture Trustee shall be the successor to, and be
vested with the rights, duties, powers and privileges of, the Master Servicer
in accordance with the terms of this Indenture.

     (h) The Indenture Trustee shall challenge or cause to be challenged any
attempt at substantive consolidation of the assets and liabilities of the
Issuer with those of any Owner (as the term "Owner" is defined in the Trust
Agreement) in connection with any insolvency proceeding of the Issuer.

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

     (j) Subject to the other provisions of this Indenture and without
limiting the generality of this Section 6.1, the Indenture Trustee, unless it
is acting as the Master Servicer under the Sale and Servicing Agreement, shall
have no duty (A) to see to any recording, filing, or depositing of this
Indenture or any agreement referred to herein or any financing statement or
continuation statement evidencing a security interest, or to see to the
maintenance of any such recording or filing or depositing or to any
rerecording, refiling or redepositing of any thereof, (B) to see to any
insurance, (C) to see to the payment or discharge of any tax, assessment, or
other governmental charge or any lien or encumbrance of any kind owing with
respect to, assessed or levied against, any part of the Trust Estate other
than from funds available in the Collection Account, (D) to confirm or verify
the contents of any reports or certificates of the Issuer or Master Servicer
delivered to the Indenture Trustee pursuant to this Indenture believed by the
Indenture Trustee to be genuine and to have been signed or presented by the
proper party or parties.

     SECTION 6.2 Rights of Indenture Trustee.

     (a) The Indenture Trustee may conclusively rely and shall be fully
protected in acting or refraining from acting on any resolution, 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 person. The Indenture Trustee need not investigate any fact or matter
stated in the document.

                                      41
<PAGE>

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

     (c) The Indenture Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through
agents or attorneys or a custodian or nominee.

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

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

     (f) The Indenture Trustee shall be under no obligation to exercise any of
the trusts or powers vested in it by this Indenture or to institute, conduct
or defend any litigation hereunder or in relation hereto at the request, order
or direction of any of the Noteholders, pursuant to the provisions of this
Indenture, unless such Noteholders shall have offered to the Indenture Trustee
reasonable security or indemnity against the costs, expenses and liabilities
which may be incurred therein or thereby; nothing contained herein shall,
however, relieve the Indenture Trustee of the obligation, upon the occurrence
of an Event of Default of which a Responsible Officer of the Indenture Trustee
shall have actual knowledge (which has not been cured), to exercise such of
the rights and powers vested in it by this Indenture, and to use the same
degree of care and skill in their exercise, as a prudent person would exercise
or use under the circumstances in the conduct of such person's own affairs.

     (g) The Indenture Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, order, approval, bond
or other paper or document, unless requested in writing to do so by the
Majority Noteholder; provided, however, that if the payment within a
reasonable time to the Indenture Trustee of the costs, expenses or liabilities
likely to be incurred by it in the making of such investigation is, in the
opinion of the Indenture Trustee, not reasonably assured to the Indenture
Trustee by the security afforded to it by the terms of this Indenture, the
Indenture Trustee may require reasonable indemnity against such cost, expense
or liability as a condition to taking any such action. The reasonable expense
of every such examination shall be paid by the Issuer or, if paid by the
Indenture Trustee, shall be repaid by the Issuer upon demand.

     (h) The right of the Indenture Trustee to perform any discretionary act
enumerated in this Indenture shall not be construed as a duty, and the
Indenture Trustee shall not be answerable for other than its negligence or
willful misconduct in the performance of such act.

                                      42
<PAGE>

     (i) The Indenture Trustee shall not be required to give any bond or
surety in respect of the execution of the Trust Fund created hereby or the
powers granted hereunder.

     (j) The Indenture Trustee shall have no liability in connection with the
malfeasance or nonfeasance by the Issuer or the Master Servicer. The Indenture
Trustee shall have no liability in connection with compliance by the Issuer or
the Master Servicer with statutory or regulatory requirements related to the
Collateral or the Trust Estate. The Indenture Trustee shall not make or be
deemed to have made any representations or warranties with respect to the
Collateral or the Trust Estate or the validity or sufficiency of any
assignment of the Collateral or the Trust Estate to the Indenture Trustee.

     (k) In the event that the Indenture Trustee is also acting as Paying
Agent or Registrar hereunder, the rights, protection, immunities and
indemnities afforded to the Indenture Trustee pursuant to this Article VI
shall also be afforded to such Paying Agent or Registrar.

     SECTION 6.3 Individual Rights of Indenture Trustee. The Indenture Trustee
in its individual or any other capacity may become the owner or pledgee of
Notes and may otherwise deal with the Issuer or its Affiliates with the same
rights it would have if it were not Indenture Trustee. Any Paying Agent, Note
Registrar, co-registrar or co-paying agent may do the same with like rights.
However, the Indenture Trustee must comply with Sections 6.11 and 6.12 below.

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

     SECTION 6.5 Notice of Defaults. The Indenture Trustee shall not be
charged with the knowledge of an Event of Default unless a Responsible Officer
has received written notice or has actual knowledge thereof. The Indenture
Trustee shall mail to each Noteholder, the Master Servicer and the Depositor
notice of the Default within 30 days after it occurs at the expense of the
Issuer. Except in the case of a Default in payment of principal of or interest
on any Note, the Indenture Trustee may withhold the notice to the Noteholders
if and so long as a committee of its Responsible Officers in good faith
determines that withholding the notice is in the interests of Noteholders.

     SECTION 6.6 Reports by Indenture Trustee to Holders. The Indenture
Trustee shall deliver to each Noteholder such information as may be required
to enable such holder to prepare its federal and state income tax returns. In
addition, upon Issuer Request, the Indenture Trustee shall promptly furnish
such information reasonably requested by the Issuer that is reasonably
available to the Indenture Trustee to enable the Issuer to perform its federal
and state income tax reporting obligations.

                                      43
<PAGE>

     SECTION 6.7 Compensation and Indemnity. The Issuer shall, or shall cause
the Master Servicer to, pay to the Indenture Trustee from time to time as
compensation for its services a fee previously agreed to by the Master
Servicer and the Indenture Trustee. The Indenture Trustee's compensation shall
not be limited by any law on compensation of a trustee of an express trust.
The Issuer shall or shall cause the Master Servicer to reimburse the Indenture
Trustee for all reasonable out-of-pocket expenses incurred or made by it,
including costs of collection, in addition to the compensation for its
services. Such expenses shall include the reasonable compensation and
expenses, disbursements and advances of the Indenture Trustee's agents,
outside counsel, accountants and experts. The Issuer shall or shall cause the
Master Servicer to indemnify the Indenture Trustee, and its respective
officers, directors, employees and agents against any and all loss, liability
or expense (including attorneys' fees and expenses) incurred by each of them
in connection with the acceptance or the administration of this trust and the
performance of its duties hereunder. The Indenture Trustee shall notify the
Issuer and the Master Servicer promptly of any claim for which it may seek
indemnity. Failure by the Indenture Trustee to so notify the Issuer and the
Master Servicer shall not relieve the Issuer or the Master Servicer of its
obligations hereunder. The Issuer shall defend or shall cause the Master
Servicer to defend any claim for indemnity that may arise against the
Indenture Trustee, or the Indenture Trustee may have separate counsel and the
Issuer shall or shall cause the Master Servicer to pay the fees and expenses
of such counsel. Neither the Issuer nor the Master Servicer need reimburse any
expense or indemnify against any loss, liability or expense incurred by the
Indenture Trustee through such Person's own willful misconduct, negligence or
bad faith. HFC's payment obligations to the Indenture Trustee pursuant to this
Section 6.7 shall survive the discharge of this Indenture.

     SECTION 6.8 Replacement of Indenture Trustee. No resignation or removal
of the Indenture Trustee and no appointment of a successor Indenture Trustee
shall become effective until the acceptance of appointment by the successor
Indenture Trustee pursuant to this Section. The Indenture Trustee may resign
at any time by so notifying the Issuer. The Majority Noteholder may remove the
Indenture Trustee by so notifying the Indenture Trustee and may appoint a
successor Indenture Trustee. The Issuer shall remove the Indenture Trustee if:

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

     (b) the Indenture Trustee is adjudged a bankrupt or insolvent;

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

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

     If the Indenture Trustee resigns or is removed or if a vacancy exists in
the office of Indenture Trustee for any reason (the Indenture Trustee in such
event being referred to herein as the retiring Indenture Trustee), the Issuer
shall promptly appoint a successor Indenture Trustee.

     A successor Indenture Trustee shall deliver a written acceptance of its
appointment to the retiring Indenture Trustee and the Issuer. Thereupon the
resignation or removal of the retiring

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

     If a successor Indenture Trustee does not take office within 30 days
after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture Trustee, the Issuer or the Majority Noteholder may petition any
court of competent jurisdiction for the appointment of a successor Indenture
Trustee.

     If the Indenture Trustee fails to comply with Section 6.11 below, any
Noteholder may petition any court of competent jurisdiction for the removal of
the Indenture Trustee and the appointment of a successor Indenture Trustee.

     Notwithstanding the replacement of the Indenture Trustee pursuant to this
Section 6.8, the Issuer's obligations under Section 6.7 above shall continue
for the benefit of the retiring Indenture Trustee.

     SECTION 6.9 Successor Indenture Trustee by Merger. If the Indenture
Trustee consolidates with, merges or converts into, or transfers all or
substantially all its corporate trust business or assets to, another
corporation or banking association, the resulting, surviving or transferee
corporation without any further act shall be the successor Indenture Trustee;
provided, that such corporation or banking association shall be otherwise
qualified and eligible under Section 6.11 below.

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

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

     (a) Notwithstanding any other provisions of this Indenture, at any time,
for the purpose of meeting any legal requirement of any jurisdiction in which
any part of the Trust Estate may at the time be located, the Indenture Trustee
shall have the power and may execute and deliver all instruments to appoint
one or more Persons to act as a co-trustee or co-trustees, or separate trustee
or separate trustees, of all or any part of the Trust, and to vest in such
Person or Persons, in such capacity and for the benefit of the Noteholders,
such title to the Trust Estate, or any part hereof, and, subject to the other
provisions of this Section 6.10, such powers, duties, obligations, rights and
trusts as the Indenture Trustee may consider necessary or desirable. No
co-trustee or separate trustee hereunder shall be required to meet the terms
of eligibility as a successor trustee

                                      45
<PAGE>

under Section 6.11 below and no notice to Noteholders of the appointment of
any co-trustee or separate trustee shall be required under Section 6.8 hereof.

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

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

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

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

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

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

     SECTION 6.11 Eligibility; Disqualification. The Indenture Trustee shall
at all times satisfy the requirements of TIA Section 310(a). The Indenture
Trustee shall have a combined capital and surplus of at least $50,000,000 as
set forth in its most recent published annual report of condition. The
Indenture Trustee shall comply with TIA Section 310(b), including the optional
provision permitted by the second sentence of TIA Section 310(b)(9); provided,

                                      46
<PAGE>

however, that there shall be excluded from the operation of TIA Section
310(b)(1) any indenture or indentures under which other securities of the
Issuer are outstanding if the requirements for such exclusion set forth in TIA
Section 310(b)(1) are met.

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

     SECTION 6.13 Representations and Warranties. The Indenture Trustee hereby
represents and warrants that:

     (a) The Indenture Trustee is duly organized, validly existing and in good
standing under the laws of United States of America, with power and authority
to own its properties and to conduct its business as such properties are
currently owned and such business is currently conducted.

     (b) The Indenture Trustee has the power and authority to execute and
deliver this Indenture and the other Transaction Documents to which it is a
party and to carry out its terms; and the execution, delivery and performance
of this Indenture have been duly authorized by the Indenture Trustee by all
necessary corporate action.

     (c) The consummation of the transactions contemplated by this Indenture
and the fulfillment of the terms hereof do not conflict with, result in any
breach of any of the terms and provisions of, or constitute (with or without
notice or lapse of time) a default under, the certificate of incorporation or
bylaws of the Indenture Trustee or any agreement or other instrument to which
the Indenture Trustee is a party or by which it is bound.

     SECTION 6.14 Directions to Indenture Trustee. The Indenture Trustee is
hereby directed:

     (a) to accept the pledge of the Home Equity Loans and hold the assets of
the Trust in trust for the Noteholders;

     (b) to authenticate and deliver the Notes substantially in the form
prescribed by Exhibit A in accordance with the terms of this Indenture; and

     (c) to take all other actions as shall be required to be taken by the
terms of this Indenture.

                                      47
<PAGE>

                                 ARTICLE VII

                        NOTEHOLDERS' LISTS AND REPORTS

     SECTION 7.1 Issuer to Furnish Indenture Trustee Names and Addresses of
Noteholders. The Issuer will furnish or cause to be furnished to the Indenture
Trustee (a) not more than five days after the earlier of (i) each Record Date
and (ii) three months after the last Record Date, a list, in such form as the
Indenture Trustee may reasonably require, of the names and addresses of the
Noteholders as of such Record Date, (b) at such other times as the Indenture
Trustee may request in writing, within 30 days after receipt by the Issuer of
any such request, a list of similar form and content as of a date not more
than 10 days prior to the time such list is furnished; provided, however, that
so long as the Indenture Trustee is the Note Registrar, no such list shall be
required to be furnished.

     SECTION 7.2 Preservation of Information; Communications to Noteholders.

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

     (b) Noteholders may communicate pursuant to TIA Section 312(b) with other
Noteholders with respect to their rights under this Indenture or under the
Notes.

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

     SECTION 7.3 Reports by Issuer.

     (a) The Issuer shall:

          (i) file with the Indenture Trustee, within 15 days after the Issuer
     is required to file the same with the Commission, copies of the annual
     reports and of the information, documents and other reports (or copies of
     such portions of any of the foregoing as the Commission may from time to
     time by rules and regulations prescribe) that the Issuer may be required
     to file with the Commission pursuant to Section 13 or 15(d) of the
     Exchange Act;

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

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<PAGE>

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

     (b) Unless the Issuer otherwise determines, the fiscal year of the Issuer
shall end on December 31 of each year.

     SECTION 7.4 Reports by Indenture Trustee. If required by TIA Section
313(a), within 60 days after each August 1, beginning with August 1, 2004, the
Indenture Trustee shall mail to each Noteholder as required by TIA Section
313(c) a brief report dated as of such date that complies with TIA Section
313(a). The Indenture Trustee also shall comply with TIA Section 313(b).

     A copy of each report at the time of its mailing to Noteholders shall be
filed by the Indenture Trustee with the Commission and each securities
exchange, if any, on which the Notes are listed. The Issuer shall notify the
Indenture Trustee if and when the Notes are listed on any securities exchange.

                                      49
<PAGE>

                                 ARTICLE VIII

                     ACCOUNTS, DISBURSEMENTS AND RELEASES

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

     SECTION 8.2 Accounts; Distributions.

     (a) On or prior to the Closing Date, the Indenture Trustee shall
establish and maintain or cause to be established and maintained, in the name
of the Indenture Trustee for the benefit of the Noteholders and the
Transferor, the Collection Account as provided in Article V of the Sale and
Servicing Agreement into which amounts shall be deposited in accordance with
the terms of the Sale and Servicing Agreement.

     (b) The Indenture Trustee shall deposit any amounts representing payments
on and any collections in respect of the Home Equity Loans received by it, if
any, and any other amounts required by the terms of the Transaction Documents
to be deposited, immediately following receipt thereof. Amounts on deposit in
the Collection Account may be invested in Permitted Investments pursuant to
Section 3.02(d) of the Sale and Servicing Agreement.

     (c) On each Payment Date and the Redemption Date, to the extent funds are
available in the Collection Account, the Indenture Trustee shall make the
distributions and payments in the amounts and in the priority set forth in
Section 5.01 of the Sale and Servicing Agreement (except as otherwise provided
in Section 5.4(b) herein).

     (d) On each Payment Date and the Redemption Date, to the extent of the
interest of the Indenture Trustee in the Collection Account (as described in
Section 5.01 of the Sale and Servicing Agreement), the Indenture Trustee
hereby authorizes the Owner Trustee or the Paying Agent, as applicable, to
make the distributions from the Collection Account as required pursuant to
Section 5.01 of the Sale and Servicing Agreement.

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<PAGE>

     SECTION 8.3 [Reserved].

     SECTION 8.4 Master Servicer's Monthly Statements.

     On each Payment Date, the Indenture Trustee shall deliver the Indenture
Trustee's Statement to Noteholders (as defined in the Sale and Servicing
Agreement) with respect to such Payment Date to DTC and the Rating Agencies.
Such information shall also be made available at the Indenture Trustee's
website, which as of the date hereof is located at www.abs.bankone.com.

     SECTION 8.5 [Reserved].

     SECTION 8.6 Opinion of Counsel. The Indenture Trustee shall receive at
least seven days notice when requested by the Issuer to take any action
pursuant to Section 2.9(a) herein, accompanied by copies of any instruments
involved, and the Indenture Trustee shall also require, as a condition to such
action, an Opinion of Counsel, in form and substance satisfactory to the
Indenture Trustee addressed to the Indenture Trustee, stating the legal effect
of any such action, outlining the steps required to complete the same, and
concluding that all conditions precedent to the taking of such action have
been complied with and such action will not materially and adversely impair
the security for the Notes or the rights of the Noteholders in contravention
of the provisions of this Indenture; provided, however, that such Opinion of
Counsel shall not be required to express an opinion as to the fair market
value of a Trust Estate. Counsel rendering any such opinion may rely, without
independent investigation, on the accuracy and validity of any certificate or
other instrument delivered to the Indenture Trustee in connection with any
such action.

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                                  ARTICLE IX

                            SUPPLEMENTAL INDENTURES

     SECTION 9.1 Supplemental Indentures without Consent of Noteholders.

     (a) Without the consent of the Holders of any Notes but with prior notice
to the Rating Agencies, the Issuer and the Indenture Trustee, when authorized
by an Issuer Order, at any time and from time to time, may enter into one or
more indentures supplemental hereto (which shall conform to the provisions of
the Trust Indenture Act as in force at the date of the execution thereof), in
form satisfactory to the Indenture Trustee, for any of the following purposes:

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

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

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

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

          (v) to cure any ambiguity, to correct or supplement any provision
     herein or in any supplemental indenture that may be inconsistent with any
     other provision herein or in any supplemental indenture or to make any
     other provisions with respect to matters or questions arising under this
     Indenture or in any supplemental indenture; provided, that such action
     shall not adversely affect the interests of the Noteholders;

          (vi) to evidence and provide for the acceptance of the appointment
     hereunder by a successor trustee with respect to the Notes and to add to
     or change any of the provisions of this Indenture as shall be necessary
     to facilitate the administration of the trusts hereunder by more than one
     trustee, pursuant to the requirements of Article VI herein; or

          (vii) to modify, eliminate or add to the provisions of this
     Indenture to such extent as shall be necessary to effect the
     qualification of this Indenture under the TIA or under any similar
     federal statute hereafter enacted and to add to this Indenture such other
     provisions as may be expressly required by the TIA.

     The Indenture Trustee is hereby authorized to join in the execution of
any such supplemental indenture and to make any further appropriate agreements
and stipulations that may be therein contained.

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<PAGE>

     (b) The Issuer and the Indenture Trustee, when authorized by an Issuer
Order, may, also without the consent of any of the Noteholders but with prior
confirmation from the Rating Agencies, enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to, or changing
in any manner or eliminating any of the provisions of, this Indenture or of
modifying in any manner the rights of the Noteholders under this Indenture;
provided, however, that such action shall not, as evidenced by an Opinion of
Counsel or satisfaction of the Rating Agency Condition, adversely affect in
any material respect the interests of any Noteholder or cause the Issuer to be
subject to entity level tax.

     SECTION 9.2 Supplemental Indentures with Consent of Noteholders. The
Issuer and the Indenture Trustee, when authorized by an Issuer Order, also
may, with prior consent of the Rating Agencies, and with the consent of the
Majority Noteholder, by Act of such Majority Noteholder delivered to the
Issuer and the Indenture Trustee, enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to, or changing
in any manner or eliminating any of the provisions of, this Indenture or of
modifying in any manner the rights of the Holders of the Notes under this
Indenture; provided, however, that no such supplemental indenture shall,
without the consent of the Holder of each Outstanding Note affected thereby:

     (a) change the date of payment of any installment of principal of or
interest on any Note, or reduce the principal amount thereof, the interest
rate thereon or the amount required to be paid on the Notes following the
exercise of the option set forth in Section 8.01 of the Sale and Servicing
Agreement, change the provisions of this Indenture relating to the application
of collections on, or the proceeds of the sale of, the Trust Estate to payment
of principal of or interest on the Notes, or change any place of payment
where, or the coin or currency in which, any Note or the interest thereon is
payable, or impair the right to institute suit for the enforcement of the
provisions of this Indenture requiring the application of funds available
therefor, as provided in Article V herein, to the payment of any such amount
due on the Notes on or after the respective due dates thereof (or, in the case
of redemption, on or after the Redemption Date);

     (b) reduce the percentage of the Outstanding Amount of the Notes, the
consent of the Holders of which is required for any such supplemental
indenture, or the consent of the Holders of which is required for any waiver
of compliance with certain provisions of this Indenture or certain defaults
hereunder and their consequences provided for in this Indenture;

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

     (d) reduce the percentage of the Outstanding Amount of the Notes required
to direct the Indenture Trustee to direct the Issuer to sell or liquidate the
Trust Estate pursuant to Section 5.4 herein;

     (e) modify any provision of this Section except to increase any
percentage specified herein or to provide that certain additional provisions
of this Indenture or the Transaction

                                      53
<PAGE>

Documents cannot be modified or waived without the consent of the Holder of
each Outstanding Note affected thereby;

     (f) modify any of the provisions of this Indenture in such manner as to
affect the calculation of the amount of any payment of interest or principal
due on any Note on any Payment Date (including the calculation of any of the
individual components of such calculation); or

     (g) permit the creation of any lien ranking prior to or on a parity with
the lien of this Indenture with respect to any part of the Trust Estate or,
except as otherwise permitted or contemplated herein, terminate the lien of
this Indenture on any property at any time subject hereto or deprive the
Holder of any Note of the security provided by the lien of this Indenture
provided further, that such action shall not, as evidenced by an Opinion of
Counsel, cause the Issuer to be subject to an entity level tax.

     The Indenture Trustee may in its discretion determine whether or not any
Notes would be affected by any supplemental indenture and any such
determination shall be conclusive upon the Holders of all Notes, whether
theretofore or thereafter authenticated and delivered hereunder. The Indenture
Trustee shall not be liable for any such determination made in good faith.

     In connection with requesting the consent of the Noteholders pursuant to
this Section 9.2, the Indenture Trustee shall mail to the Holders of the Notes
to which such amendment or supplemental indenture relates a notice setting
forth in general terms the substance of such supplemental indenture at the
Issuer's expense. It shall not be necessary for any Act of Noteholders under
this Section 9.2 to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such Act shall approve the substance
thereof.

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

     SECTION 9.4 Effect of Supplemental Indenture. Upon the execution of any
supplemental indenture pursuant to the provisions hereof, this Indenture shall
be deemed to be modified and amended in accordance therewith with respect to
the Notes affected thereby, and the respective rights, limitations of rights,
obligations, duties, liabilities and immunities under this Indenture of the
Indenture Trustee, the Issuer and the Holders of the Notes shall thereafter be
determined, exercised and enforced hereunder subject in all respects to such
modifications and amendments, and all the terms and conditions of any such
supplemental indenture shall be and be deemed to be part of the terms and
conditions of this Indenture for any and all purposes.

                                      54
<PAGE>

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

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

                                      55
<PAGE>

                                  ARTICLE X

                             TERMINATION OF TRUST

     SECTION 10.1 Early Termination.

     The Master Servicer may effect an early termination of the Trust pursuant
to Section 8.01 of the Sale and Servicing Agreement on or after any Payment
Date on which the Note Principal Amount of the Notes declines to 15% or less
of the initial Note Principal Amount of the Notes and the purchase price for
the Home Equity Loans has been paid, pursuant to the provisions of Section
8.01(b) of the Sale and Servicing Agreement (such date, the "Redemption
Date"). If the Master Servicer does not terminate the Trust in accordance with
Section 8.01(b) of the Sale and Servicing Agreement within three months of the
first Payment Date upon which such termination may be effected, then the
Indenture Trustee shall conduct an auction process for the Home Equity Loans
as provided in Section 8.01(c) of the Sale and Servicing Agreement.

     The Indenture Trustee shall furnish notice of any redemption of the Notes
that occurs as a result of any of the foregoing in accordance with Section
8.01 of the Sale and Servicing Agreement.

     SECTION 10.2 Mandatory Redemption.

     (a) If the full amount of principal and interest then due on the Notes is
not paid by the Payment Date in September 2013, the Indenture Trustee shall
begin a process for soliciting bids in connection with an auction of the Home
Equity Loans. The Indenture Trustee shall provide the Master Servicer written
notice of such auction at least ten (10) Business Days prior to the date bids
must be received in such auction (the "Mandatory Auction Date"). The auction
shall be conducted as follows:

     (b) The Indenture Trustee shall solicit new bids and, if more than one
bid is received, the Indenture Trustee shall solicit and resolicit new bids
from all participating bidders until only one bid remains or the remaining
bidders decline to resubmit bids. The Indenture Trustee shall accept the
highest of such remaining bids if it is equal to or in excess of the Mandatory
Redemption Price. If the highest of such remaining bids is less than the
Mandatory Redemption Price, then the Indenture Trustee shall neither accept
such bid nor consummate such sale unless the Holders of 66-2/3% of the
aggregate principal amount of each Class of Notes Outstanding consent.

     (c) If the first auction conducted by the Indenture Trustee does not
produce any bid at least equal to the Mandatory Redemption Price, then the
Indenture Trustee shall, beginning on the Payment Date occurring approximately
three months after the Mandatory Auction Date for the failed first auction,
commence another auction in accordance with the requirements of this
subsection (c). If such second auction does not produce any bid at least equal
to the Mandatory Redemption Price, then the Indenture Trustee shall, beginning
on the Payment Date occurring approximately three months after the Mandatory
Auction Date for the failed second auction, commence another auction in
accordance with the requirements of this subsection (c), and shall continue to
conduct similar auctions approximately every three months thereafter until the

                                      56
<PAGE>

earliest of (i) delivery by the Master Servicer of notice of exercise of its
repurchase option pursuant to Section 8.01(b) of the Sale and Servicing
Agreement, (ii) receipt by the Indenture Trustee of a bid meeting the
conditions specified in the preceding paragraph, or (iii) the Payment Date on
which the Principal Balance of all the Home Equity Loans is reduced to zero.

     (d) If the Indenture Trustee receives a bid meeting the conditions
specified in this Section 10.2, the Master Servicer and the Issuer shall
promptly arrange for the sale of the Home Equity Loans to the winning bidder,
the Indenture Trustee shall execute such agreements and termination statements
as may be reasonably required or appropriate to release the lien of this
Indenture with respect to the Home Equity Loans and Mortgage Files upon
payment to the Indenture Trustee of the bid purchase price and satisfaction of
any other terms of the auction sale. The Indenture Trustee shall cooperate
with the Master Servicer and the Issuer in the sale of the Home Equity Loans,
shall deliver to the winning bidder the related Mortgage Files in the
Indenture Trustee's possession (if any), and shall take such other actions as
the winning bidder may reasonably request to effect the transfer of the Home
Equity Loans.

     (e) Notice of any termination, specifying the Payment Date (which shall
be a date that would otherwise be a Payment Date) upon which the Noteholders
may surrender their Notes to the Indenture Trustee for payment of the final
distribution and cancellation (the "Redemption Date"), shall be given promptly
by the Indenture Trustee (upon receipt of written directions from the Master
Servicer, if the Master Servicer is exercising its right to repurchase the
Home Equity Loans, given not later than the first day of the month preceding
the month of such final distribution) to the Master Servicer by letter to the
Noteholders mailed not earlier than the 15th day and not later than the 25th
day of the month next preceding the month of such final distribution
specifying (i) the Payment Date upon which final distribution of the Notes
will be made upon presentation and surrender of Notes at the office or agency
of the Indenture Trustee therein designated, (ii) the amount of any such final
distribution and (iii) that the Record Date otherwise applicable to such
Payment Date is not applicable, distributions being made only upon
presentation and surrender of the Notes at the office or agency of the
Indenture Trustee therein specified. On the Redemption Date specified pursuant
to this subsection (e), the Indenture Trustee shall distribute the proceeds of
the sale of the Home Equity Loans in accordance with the priorities listed in
Section 5.01 of the Sale and Servicing Agreement.

     (f) Upon presentation and surrender of the Notes, to the extent of funds
available therefor, the Indenture Trustee shall cause to be distributed to the
Holders of the Notes on the Payment Date for such final distribution, in
proportion to the Percentage Interests of their respective Notes and to the
extent that funds are available for such purpose, an amount equal to the
amount required to be distributed to Noteholders pursuant to Section 5.01 of
the Sale and Servicing Agreement for such Payment Date.

     (g) In the event that all of the Noteholders shall not surrender their
Notes for final payment and cancellation on or before such final Payment Date,
the Indenture Trustee shall promptly following such date cause all funds in
the Collection Account not distributed in final payment to Noteholders, to be
withdrawn therefrom and credited to the remaining Noteholders by depositing
such funds in a separate escrow account for the benefit of such Noteholders,
and

                                      57
<PAGE>

the Master Servicer (if the Master Servicer has exercised its right to
purchase the Home Equity Loans) or the Indenture Trustee (in any other case)
shall give a second written notice to the remaining Noteholders to surrender
their Notes for cancellation and receive the final payment with respect
thereto. If within nine months after the second notice all the Notes shall not
have been surrendered for cancellation, the holder of the Ownership Interest
will be entitled to all remaining unclaimed funds and other assets which
remain subject hereto, and the Indenture Trustee upon transfer of such funds
shall be discharged of any responsibility for such funds and the Noteholders
shall look to the holder of the Ownership Interest for payment.

                                      58
<PAGE>

                                  ARTICLE XI

                                 MISCELLANEOUS

     SECTION 11.1 Compliance Certificates and Opinions, etc.

     (a) Upon any application or request by the Issuer made to the Indenture
Trustee to take any action under any provision of this Indenture, the Issuer
shall furnish to the Indenture Trustee (i) an Officer's Certificate stating
that all conditions precedent, if any, provided for in this Indenture relating
to the proposed action have been complied with, (ii) an Opinion of Counsel
stating that in the opinion of such counsel all such conditions precedent, if
any, have been complied with and (iii) (if required by the TIA) an Independent
Certificate from a firm of certified public accountants meeting the applicable
requirements of this Section 11.1, except that, in the case of any such
application or request as to which the furnishing of such documents is
specifically required by any provision of this Indenture, no additional
certificate or opinion need be furnished.

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

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

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

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

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

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

                                      59
<PAGE>

     (ii) Whenever the Issuer is required to furnish to the Indenture Trustee
an Officer's Certificate certifying or stating the opinion of any signer
thereof as to the matters described in clause (i) above, the Issuer shall also
deliver to the Indenture Trustee an Independent Certificate as to the same
matters, if the fair value to the Issuer of the Collateral, other property or
securities to be so deposited and of all other such Collateral, other property
or securities made the basis of any such withdrawal or release since the
commencement of the then-current fiscal year of the Issuer, as set forth in
the certificates delivered pursuant to clause (i) above and this clause (ii),
is 10% or more of the aggregate Note Principal Amount of the Notes, but such a
certificate need not be furnished with respect to any securities so deposited,
if the fair value thereof to the Issuer as set forth in the related Officer's
Certificate is less than either (A) $25,000 or (B) one percent of the
aggregate Note Principal Amount of the Notes.

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

     (iv) Whenever the Issuer is required to furnish to the Indenture Trustee
an Officer's Certificate certifying or stating the opinion of any signer
thereof as to the matters described in clause (iii) above, the Issuer shall
also furnish to the Indenture Trustee an Independent Certificate as to the
same matters if the fair value of the property or securities and of all other
property or securities released from the lien of this Indenture since the
commencement of the then-current calendar year, as set forth in the
certificates required by clause (iii) above and this clause (iv), equals 10%
or more of the aggregate Note Principal Amount of the Notes, but such
certificate need not be furnished in the case of any release of property or
securities if the fair value thereof as set forth in the related Officer's
Certificate is less than $25,000 or less than one percent of the then current
aggregate Note Principal Amount of the Notes.

     SECTION 11.2 Form of Documents Delivered to Indenture Trustee. In any
case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other
such Persons as to other matters, and any such Person may certify or give an
opinion as to such matters in one or several documents.

     Any certificate or opinion of an Authorized Officer of the Issuer may be
based, insofar as it relates to legal matters, upon a certificate or opinion
of, or representations by, counsel, unless such officer knows, or in the
exercise of reasonable care should know, that the certificate or opinion or
representations with respect to the matters upon which such officer's
certificate or opinion is based are erroneous. Any such certificate of an
Authorized Officer or Opinion of Counsel may be based, insofar as it relates
to factual matters, upon a certificate or opinion of, or representations by,
an officer or officers of the Master Servicer, the Transferor or the Issuer,

                                      60
<PAGE>

stating that the information with respect to such factual matters is in the
possession of the Master Servicer, the Transferor or the Issuer, unless such
counsel knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to such matters are
erroneous.

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

     Whenever in this Indenture, in connection with any application or
certificate or report to the Indenture Trustee, it is provided that the Issuer
shall deliver any document as a condition of the granting of such application,
or as evidence of the Issuer's compliance with any term hereof, it is intended
that the truth and accuracy, at the time of the granting of such application
or at the effective date of such certificate or report (as the case may be),
of the facts and opinions stated in such document shall in such case be
conditions precedent to the right of the Issuer to have such application
granted or to the sufficiency of such certificate or report. The foregoing
shall not, however, be construed to affect the Indenture Trustee's right to
rely upon the truth and accuracy of any statement or opinion contained in any
such document as provided in Article VI hereof.

     SECTION 11.3 Acts of Noteholders.

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

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

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

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

                                      61
<PAGE>

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

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

     (b) the Issuer by the Indenture Trustee or by any Noteholder shall be
sufficient for every purpose hereunder if in writing and mailed first-class,
postage prepaid to the Issuer addressed to: Household Home Equity Loan Trust
2003-1, in care of the Owner Trustee at 101 Barclay St., Floor 8W, New York,
New York 10286, Attention: Asset Backed Securities, and the Delaware Trustee
at White Clay Center, Route 273, Newark, Delaware 19711, Attention: Corporate
Trust Office and to the Master Servicer addressed to: 2700 Sanders Road,
Prospect Heights, Illinois 60070, or at any other address previously furnished
in writing to the Indenture Trustee by the Issuer. The Issuer shall promptly
transmit any notice received by it from the Noteholders to the Indenture
Trustee.

     Notices required to be given to the Rating Agencies by the Indenture
Trustee, the Owner Trustee or the Delaware Trustee shall be in writing,
personally delivered or mailed by certified mail, return receipt requested, to
(i) in the case of Fitch, at the following address: One State Street Plaza,
New York, New York 10007, (ii) in the case of Moody's, at the following
address: 99 Church Street, New York, New York 10007, and (iii) in the case of
Standard & Poor's, at the following address: 55 Water Street, New York, New
York 10041; or as to each of the foregoing, at such other address as shall be
designated by written notice to the other parties.

     SECTION 11.5 Notices to Noteholders; Waiver. Where this Indenture
provides for notice to Noteholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class, postage prepaid to each Noteholder affected by such
event, at his address as it appears on the Note Register, not later than the
latest date, and not earlier than the earliest date, prescribed for the giving
of such notice. In any case where notice to Noteholders is given by mail,
neither the failure to mail such notice nor any defect in any notice so mailed
to any particular Noteholder shall affect the sufficiency of such notice with
respect to other Noteholders, and any notice that is mailed in the manner
herein provided shall conclusively be presumed to have been duly given.

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

                In case, by reason of the suspension of regular mail service
as a result of a strike, work stoppage or similar activity, it shall be
impractical to mail notice of any event to Noteholders when such notice is
required to be given pursuant to any provision of this Indenture,

                                      62
<PAGE>

then any manner of giving such notice as shall be satisfactory to the
Indenture Trustee shall be deemed to be a sufficient giving of such notice.

               Where this Indenture provides for notice to the Rating
Agencies, failure to give such notice shall not affect any other rights or
obligations created hereunder.

     SECTION 11.6 [Reserved].

     SECTION 11.7 Conflict with Trust Indenture Act. If any provision hereof
limits, qualifies or conflicts with another provision hereof that is required
to be included in this Indenture by any of the provisions of the Trust
Indenture Act, such required provision shall control.

     The provisions of TIA Sections 310 through 317 that impose duties on any
person (including the provisions automatically deemed included herein unless
expressly excluded by this Indenture) are a part of and govern this Indenture,
whether or not physically contained herein.

     SECTION 11.8 Effect of Headings and Table of Contents. The Article and
Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

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

     SECTION 11.10 Separability. In case any provision in this Indenture or in
the Notes shall be invalid, illegal or unenforceable, the validity, legality,
and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.

     SECTION 11.11 Benefits of Indenture. Nothing in this Indenture or in the
Notes, express or implied, shall give to any Person, other than the parties
hereto and their successors hereunder, and the Noteholders and any other party
secured hereunder, and any other Person with an ownership interest in any part
of the Trust Estate, any benefit or any legal or equitable right, remedy or
claim under this Indenture.

     SECTION 11.12 Legal Holidays. In any case where the date on which any
payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Notes or this Indenture) payment need not be made on such
date, but may be made on the next succeeding Business Day with the same force
and effect as if made on the date on which nominally due, and no interest
shall accrue for the period from and after any such nominal date.

     SECTION 11.13 GOVERNING LAW. THIS INDENTURE SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS,

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<PAGE>

RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
WITH SUCH LAWS.

     SECTION 11.14 Counterparts. This Indenture may be executed in any number
of counterparts, each of which so executed shall be deemed to be an original,
but all such counterparts shall together constitute but one and the same
instrument.

     SECTION 11.15 Recording of Indenture. If this Indenture is subject to
recording in any appropriate public recording offices, such recording is to be
effected by the Issuer and at its expense accompanied by an Opinion of Counsel
(which may be counsel to the Indenture Trustee or any other counsel reasonably
acceptable to the Indenture Trustee) to the effect that such recording is
necessary either for the protection of the Noteholders or any other Person
secured hereunder or for the enforcement of any right or remedy granted to the
Indenture Trustee under this Indenture.

     SECTION 11.16 Trust Obligation. No recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee
or the Indenture Trustee on the Notes or under this Indenture or any
certificate or other writing delivered in connection herewith or therewith,
against (i) the Indenture Trustee or the Owner Trustee in its individual
capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any
partner, owner, beneficiary, agent, officer, director, employee or agent of
the Indenture Trustee or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Owner Trustee or the
Indenture Trustee or of any successor or assign of the Indenture Trustee or
the Owner Trustee in its individual capacity, except as any such Person may
have expressly agreed (it being understood that the Indenture Trustee and the
Owner Trustee have no such obligations in their individual capacity) and
except that any such partner, owner or beneficiary shall be fully liable, to
the extent provided by applicable law, for any unpaid consideration for stock,
unpaid capital contribution or failure to pay any installment or call owing to
such entity. For all purposes of this Indenture, in the performance of any
duties or obligations of the Issuer hereunder, the Owner Trustee shall be
subject to, and entitled to the benefits of, the terms and provisions of
Articles VI, VII and VIII of the Trust Agreement.

     SECTION 11.17 No Petition. The Indenture Trustee, by entering into this
Indenture, and each Noteholder, by accepting a Note, hereby covenant and agree
that they will not at any time institute against the Transferor (and any
wholly-owned subsidiary thereof), the Depositor, the Master Servicer or the
Issuer, or join in any institution against the Transferor (and any
wholly-owned subsidiary thereof), the Depositor, the Master Servicer or the
Issuer of, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other proceedings under any United States federal
or state bankruptcy or similar law in connection with any obligations relating
to the Notes, this Indenture or any of the Transaction Documents.

     SECTION 11.18 Inspection. The Issuer agrees that, on reasonable prior
notice, it will permit any representative of the Indenture Trustee, during the
Issuer's normal business hours, to examine all the books of account, records,
reports and other papers of the Issuer, to make copies and extracts therefrom,
to cause such books to be audited by Independent certified public accountants,
and to discuss the Issuer's affairs, finances and accounts with the Issuer's
officers,

                                      64
<PAGE>

employees, and Independent certified public accountants, all at such
reasonable times and as often as may be reasonably requested. The Indenture
Trustee shall and shall cause its representatives to hold in confidence all
such information except to the extent disclosure may be required by law (and
all reasonable applications for confidential treatment are unavailing) and
except to the extent that the Indenture Trustee may reasonably determine that
such disclosure is consistent with its obligations hereunder.

     SECTION 11.19 Inconsistencies with the Sale and Servicing Agreement. In
the event certain provisions of this Indenture conflict with the provisions of
the Sale and Servicing Agreement, the parties hereto agree that the provisions
of the Sale and Servicing Agreement shall be controlling.

     SECTION 11.20 Third-Party Beneficiaries. This Indenture will inure to the
benefit of and be binding upon the parties hereto, the Noteholders, the Note
Owners and their respective successors and permitted assigns. Except as
otherwise provided in this Indenture, no other person will have any right or
obligation hereunder.

     SECTION 11.21 Limited Recourse.

     (a) Notwithstanding anything in this Indenture to the contrary, the Notes
constitute limited recourse obligations and are limited in recourse to the
assets of the Trust. The Indenture Trustee, by entering into this Indenture,
and each Noteholder, by accepting a Note, agree that recourse for the Notes is
limited to the assets of the Trust and, if the assets of the Trust shall prove
to be insufficient to pay amounts due under the Notes, the Noteholders shall
have no claim against the assets of the Depositor other than those which have
been conveyed to the Trust.

     (b) If, notwithstanding paragraph (a) above, the Noteholders are deemed
to have any interest in any asset of the Depositor other than the Depositor's
interest in the assets of the Trust, including any interest in assets of the
Depositor, or any assets sold by the Depositor to another trustee pursuant to
a separate pooling and servicing agreement, sale and servicing agreement or
similar agreement, pledged to secure debt obligations of the Depositor other
than the Notes, the Indenture Trustee, by entering into this Indenture, and
each Noteholder, by accepting a Note, agree that any such interest is
subordinate to the claims of the holders of any such debt obligations, and the
Indenture Trustee and the Noteholders shall have no rights in such assets
until such debt obligations are indefeasibly paid in full. The agreement of
the Indenture Trustee and the Noteholders pursuant to this Section 11.20 is
intended to constitute a subordination agreement for the purposes of Section
510(a) of title 11 of the United States Code, 11 U.S.C. ss.ss. 101 et seq.
(the "Bankruptcy Code").

     SECTION 11.22 Limitation on Voting of Preferred Stock. The Indenture
Trustee shall hold all of the Preferred Stock in trust, for the benefit of the
Noteholders, and shall vote such stock only pursuant to the written
instructions of the Majority Noteholder; provided that:

          (i) any direction provided by the Majority Noteholder shall not be
     in conflict with any rule of law or with any of the Transaction
     Documents; and

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<PAGE>

          (ii) the Trust and the Indenture Trustee may take any other action
     deemed proper by the Trust or the Indenture Trustee that is not
     inconsistent with any direction;

and provided further, however, that the Trust or the Indenture Trustee need
not take any action that it determines might involve it in liability or might
materially adversely affect the rights of any Noteholders not consenting to an
action.

     The Indenture Trustee shall not permit a transfer of any of the Preferred
Stock to HFC or any of its Affiliates. Concurrently with any transfer of the
Home Equity Loans to the Master Servicer or sale in connection with any
auction pursuant to Section 8.01(b) or 8.01(c), respectively, of the Sale and
Servicing Agreement, the Indenture Trustee shall transfer to the Depositor for
cancellation all shares of Preferred Stock held by the Indenture Trustee.

     SECTION 11.23 Limitation of Liability. It is understood by each party
hereto that the sole recourse of each party hereto in respect of the
obligations of the Issuer hereunder and under the other Transaction Documents
to which it is a party shall be to the Trust Estate. In addition, The Bank of
New York is entering into this Indenture and other Transaction Documents to
which the Issuer is a party solely in its capacity as Owner Trustee and
Delaware Trustee under the Trust Agreement and not in its individual capacity
and in no case shall The Bank of New York (or any Person acting as successor
Owner Trustee or Delaware Trustee under the Trust Agreement) be personally
liable for or on account of any of the statements, representations,
warranties, covenants or obligations stated to be those of the Issuer
hereunder or thereunder, all such liability, if any, being expressly waived by
the parties hereto and any person claiming by, through or under such party.

     SECTION 11.24 [Reserved].

     SECTION 11.25 Entire Agreement. This Indenture sets forth the entire
agreement between the parties with respect to the subject matter hereof and
thereof, and this Indenture supersedes and replaces any agreement or
understanding that may have existed between the parties prior to the date
hereof in respect of such subject matter.

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<PAGE>

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

                                    HOUSEHOLD HOME EQUITY LOAN TRUST 2003-1
                                    By:    THE BANK OF NEW YORK,
                                           not in its individual capacity but
                                           solely as Owner Trustee

                                    By:    /s/ Jonathan Farber
                                           ---------------------------
                                    Name:  JONATHAN FARBER
                                           ---------------------------
                                    Title: ASSISTANT TREASURER
                                           ---------------------------

                                    BANK ONE, NATIONAL ASSOCIATION
                                    as Indenture Trustee

                                    By:    /s/ Steven E. Charles
                                           ---------------------------
                                    Name:  STEVEN E. CHARLES
                                           ---------------------------
                                    Title: VICE PRESIDENT
                                           ---------------------------

<PAGE>

STATE OF  NEW YORK)
                  ) SS.
COUNTY OF NEW YORK)

     BEFORE ME, the undersigned authority, a Notary Public in and for said
county and state, on this day personally appeared Jonathan Farber, known to me
to be the person and officer whose name is subscribed to the foregoing
instrument and acknowledged to me that the same was the act of the said The
Bank of New York, not in its individual capacity, but solely as Owner Trustee
on behalf of HOUSEHOLD HOME EQUITY LOAN TRUST 2003-1, a Delaware statutory
trust, and that such person executed the same as the act of said statutory
trust for the purpose and consideration therein expressed, and in the
capacities therein stated.

     GIVEN UNDER MY HAND AND SEAL OF OFFICE, this 27th day of August, 2003.

                               /s/ Scott J. Tepper
                               -----------------------------------------------
                               Notary Public in and for the State of New York

(Seal)

My commission expires:

Sept. 30, 2006
------------------------

<PAGE>

STATE OF ILLINOIS)
                 ) SS.
COUNTY OF COOK   )

     BEFORE ME, the undersigned authority, a Notary Public in and for said
county and state, on this day personally appeared STEVEN E. CHARLES, known
to me to be the person and officer whose name is subscribed to the foregoing
instrument and acknowledged to me that the same was the act of Bank One,
National Association, a national banking association, and that such person
executed the same as the act of said entity for the purpose and consideration
therein stated.

     GIVEN UNDER MY HAND AND SEAL OF OFFICE, this 28th day of August, 2003.

                               /s/ Julie Hopkins
                               -----------------------------------------------
                               Notary Public in and for the State of ILLINOIS

(Seal)

My commission expires:

3/3/07
--------------------------

<PAGE>

                                  SCHEDULE A

             PERFECTION REPRESENTATIONS, WARRANTIES AND COVENANTS

     The Issuer hereby represents, warrants, and covenants to the Indenture
Trustee as to itself, the Depositor and the Sellers as follows on the Closing
Date and on each Payment Date thereafter:

                                    General
                                    -------

     1. This Indenture creates a valid and continuing security
interest (as defined in the applicable UCC) in the Collateral in favor of the
Indenture Trustee, each of which security interest is prior to all other
Liens, and is enforceable as such as against creditors of and purchasers from
the Issuer.

     2. The Home Equity Loans constitute "general intangibles" or
"instruments" within the meaning of the applicable UCC.

     3. The Collection Account and all subaccounts thereof constitute either a
deposit account or a securities account.

     4. To the extent that payments and collections received or made with
respect to the Home Equity Loans constitute securities entitlements, such
payments and collections have been and will have been credited to the
Collection Account. The securities intermediary for the Collection Account has
agreed to treat all assets credited to the Collection Account as "financial
assets" within the meaning of the applicable UCC.

                                   Creation
                                   --------

     5. The Issuer owns and has good and marketable title to the Collateral
free and clear of any Lien, claim or encumbrance of any Person, excepting only
liens for taxes, assessments or similar governmental charges or levies
incurred in the ordinary course of business that are not yet due and payable
or as to which any applicable grace period shall not have expired, or that are
being contested in good faith by proper proceedings and for which adequate
reserves have been established, but only so long as foreclosure with respect
to such a lien is not imminent and the use and value of the property to which
the Lien attaches is not impaired during the pendency of such proceeding.

     6. The Depositor has received all consents and approvals to the sale of
the Home Equity Loans to the Issuer required by the terms of the Home Equity
Loans that constitute instruments.

     7. To the extent the Collection Account or subaccounts thereof constitute
securities entitlements, certificated securities or uncertificated securities,
the Issuer has received all consents and approvals required to transfer to the
Indenture Trustee its interest and rights in the Collection Account hereunder.

                                     A-1
<PAGE>

                                  Perfection
                                  ----------

     8. The Issuer has caused or will have caused, within ten days after the
effective date of this Indenture, the filing of all appropriate financing
statements in the proper filing office in the appropriate jurisdictions under
applicable law in order to perfect the pledge of the Collateral from the
Issuer to the Indenture Trustee and the security interest in the Collateral
granted to the Indenture Trustee under this Indenture.

     9. With respect to the Collection Account and all subaccounts that
constitute deposit accounts, either:

     (i) the Issuer has delivered to the Indenture Trustee a fully-executed
agreement pursuant to which the bank maintaining the deposit accounts has
agreed to comply with all instructions originated by the Indenture Trustee
directing disposition of the funds in the Collection Account without further
consent by the Issuer; or

     (ii) the Issuer has taken all steps necessary to cause the Indenture
Trustee to become the account holder of the Collection Account.

     10. With respect to the Collection Account or subaccounts thereof that
constitute securities accounts or securities entitlements, either:

     (i) the Issuer has caused or will have caused, within ten days after the
effective date of this Agreement, the filing of all appropriate financing
statements in the proper filing office in the appropriate jurisdictions under
applicable law in order to perfect the security interest in the Collection
Account granted by the Issuer to the Indenture Trustee; or

     (ii) the Issuer has delivered to the Indenture Trustee a fully-executed
agreement pursuant to which the securities intermediary has agreed to comply
with all instructions originated by the Indenture Trustee relating to the
Collection Account without further consent by the Depositor; or

     (iii) the Issuer has taken all steps necessary to cause the securities
intermediary to identify in its records the Indenture Trustee as the person
having a security entitlement against the securities intermediary in the
Collection Account.

                                   Priority
                                   --------

     11. Other than the transfer of the Transferred Assets to the Trust under
the Transfer Agreement, the transfer of the Home Equity Loans to the Depositor
under the Home Equity Loan Purchase Agreement, the transfer of the Home Equity
Loans to the Trust pursuant to the Sale and Servicing Agreement and the
security interest granted to the Indenture Trustee pursuant to this Indenture,
none of the Issuer, the Depositor or the Sellers has pledged, assigned, sold,
granted a security interest in, or otherwise conveyed any of the Home Equity
Loans. None of the Issuer, the Depositor or the Sellers has authorized the
filing of, or are aware of any financing statements against the Issuer, the
Depositor or any of the Sellers that include a description of collateral
covering the Home Equity Loans other than any financing statement relating to
the security interest granted to the Indenture Trustee hereunder or that has
been terminated.

                                     A-2
<PAGE>

     12. The Issuer is not aware of any judgment, ERISA or tax lien filings
against the Issuer, the Depositor or any of the Sellers.

     13. The Sellers have in their possession all original copies of the
Mortgage Notes that constitute or evidence the Home Equity Loans. To the
Issuer's knowledge, none of the instruments that constitute or evidence the
Home Equity Loans has any marks or notations indicating that they have been
pledged, assigned or otherwise conveyed to any Person other than the Issuer.
All financing statements filed or to be filed against the Issuer, the
Depositor and the Sellers in favor of the Indenture Trustee in connection
herewith describing the Home Equity Loans contain a statement to the following
effect: "A purchase of or security interest in any collateral described in
this financing statement will violate the rights of the Indenture Trustee."

     14. Neither the Collection Account nor any subaccount thereof is in the
name of any person other than the Issuer or the Indenture Trustee as trustee
under the Indenture or in the name of its nominee. The Issuer has not
consented for the securities intermediary of the Collection Account to comply
with entitlement orders of any person other than the Indenture Trustee.

     15. Survival of Perfection Representations. Notwithstanding any other
provision of this Agreement or any other transaction document, the Perfection
Representations contained in this Schedule shall be continuing, and remain in
full force and effect (notwithstanding any replacement of the Master Servicer
or termination of the Master Servicer's rights to act as such) until such time
as all obligations under this Agreement have been finally and fully paid and
performed.

     16. No Waiver. The parties to this Agreement (i) shall not, without
obtaining a confirmation of the then-current ratings of the Notes, waive any
of the Perfection Representations, and (ii) shall provide the Rating Agencies
with prompt written notice of any breach of the Perfection Representations,
and shall not, without obtaining a confirmation of the then-current ratings of
the Notes (as determined after any adjustment or withdrawal of the ratings
following notice of such breach), waive a breach of any of the Perfection
Representations.

     17. Master Servicer to Maintain Perfection and Priority. The Issuer shall
cause the Master Servicer, in order to evidence the interests of the
Depositor, the Issuer and the Indenture Trustee under the Sale and Servicing
Agreement, to take such action, or execute and deliver such instruments (other
than effecting a Filing (as defined below), unless such Filing is effected in
accordance with this paragraph) as may be necessary or advisable (including,
without limitation, such actions as are requested by the Indenture Trustee) to
maintain and perfect, as a first priority interest, the Indenture Trustee's
security interest in the Home Equity Loans. The Issuer shall cause the Master
Servicer to, from time to time and within the time limits established by law,
prepare and present to the Indenture Trustee for the Indenture Trustee to
authorize (based in reliance on the Opinion of Counsel hereinafter provided
for) the Master Servicer to file, all financing statements, amendments,
continuations, initial financing statements in lieu of a continuation
statement, terminations, partial terminations, releases or partial releases,
or any other filings necessary or advisable to continue, maintain and perfect
the Indenture Trustee's security interest in the Home Equity Loans as a
first-priority interest (each a "Filing"). The Issuer shall cause the Master
Servicer to present each such Filing to the Indenture Trustee

                                     A-3
<PAGE>

together with (x) an Opinion of Counsel to the effect that such Filing is (i)
consistent with grant of the security interest to the Trust pursuant to
Section 2.01 of the Sale and Servicing Agreement and the grant of the security
interest to the Indenture Trustee pursuant to this Indenture, (ii) satisfies
all requirements and conditions to such Filing in this Agreement and (iii)
satisfies the requirements for a Filing of such type under the Uniform
Commercial Code in the applicable jurisdiction (or if the Uniform Commercial
Code does not apply, the applicable statute governing the perfection of
security interests), and (y) a form of authorization for the Indenture
Trustee's signature. Upon receipt of such Opinion of Counsel and form of
authorization, the Indenture Trustee shall promptly authorize in writing the
Master Servicer to, and the Issuer shall cause the Master Servicer to, effect
such Filing under the Uniform Commercial Code without the signature of the
Depositor or the Trust or the Indenture Trustee where allowed by applicable
law. Notwithstanding anything else in the transaction documents to the
contrary, the Master Servicer shall not have any authority to effect a Filing
without obtaining written authorization from the Indenture Trustee.

                                     A-4
<PAGE>

                                  SCHEDULE B

                           HOME EQUITY LOAN SCHEDULE

                     [On file with the Indenture Trustee]

                                      B-1
<PAGE>

                                   EXHIBIT A

                    FORM OF CLASS A NOTES AND CLASS M NOTES

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

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE
LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

<TABLE>
<CAPTION>

No. [A][M]-[ ]                                     CUSIP NO. [o]

<S>                                                <C>
Initial Note Principal Amount of this Class:       Initial Note Principal Amount of this Note:
$[o]                                               $[o]
</TABLE>

                    HOUSEHOLD HOME EQUITY LOAN TRUST 2003-1

         CLOSED-END HOME EQUITY LOAN ASSET BACKED NOTES, SERIES 2003-1
                                 CLASS [A][M]

     HOUSEHOLD HOME EQUITY LOAN TRUST 2003-1, a statutory trust organized and
existing under the laws of the State of Delaware (herein referred to as the
"Trust"), for value received, hereby promises to pay to CEDE & CO., or
registered assigns, the principal sum of $____________ payable on each Payment
Date in an amount equal to the result obtained by multiplying (i) a fraction
the numerator of which is the Initial Note Principal Amount of this Note and
the denominator of which is the Initial Note Principal Amount of this Class by
(ii) the aggregate amount, if any, payable from the Collection Account in
respect of principal on the Note pursuant to Section 5.01 of the Sale and
Servicing Agreement dated as of August 28, 2003 (the "Sale and Servicing
Agreement"), among the Trust, HFC Revolving Corporation, as Depositor (the
"Depositor"), Household Finance Corporation, as Master Servicer ("HFC"), and
Bank One, National Association, a national banking association, as Indenture
Trustee (the "Indenture Trustee"); provided, however, that the entire unpaid
principal amount of this Note shall be due and payable on the earliest to
occur of (i) the Payment Date occurring in October 2032 (the "Final Scheduled
Payment Date"), (ii) the Redemption Date or (iii) the date on which an Event
of Default under the Indenture dated August 28, 2003, between the Trust and
the Indenture Trustee shall have occurred and be continuing, if the Indenture
Trustee or the Holders

                                     A-1
<PAGE>

of Notes representing not less than 66-2/3% of the Outstanding Amount of the
Notes have declared the Notes to be immediately due and payable in the manner
provided in Section 5.2 of the Indenture. Capitalized terms used but not
defined herein are defined in Article I of the Indenture, which also contains
rules as to construction that shall be applicable herein.

     The Trust will pay interest on this Note at the rate per annum described
in the Sale and Servicing Agreement with respect to the Note on the Note
Principal Amount of this Note outstanding on the preceding Payment Date (after
giving effect to all payments of principal made on the preceding Payment Date)
on each Payment Date until the principal of this Note is paid or made
available for payment in full. Interest on this Note will accrue for each
Payment Date during the period from and including the preceding Payment Date
to the day immediately preceding such Payment Date (or, in the case of the
first Payment Date, the period from and including the Closing Date to the day
immediately preceding the first Payment Date) (each, an "Accrual Period").
Interest will be computed on the basis of the actual number of days in each
Accrual Period and a 360-day year. Such principal of and interest on this Note
shall be paid in the manner specified on the reverse hereof.

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

     Reference is made to the further provisions of this Note set forth on the
reverse hereof, which shall have the same effect as though fully set forth on
the face of this Note.

     Unless the certificate of authentication hereon has been executed by the
Indenture Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

                                     A-2
<PAGE>

     IN WITNESS WHEREOF, the Trust has caused this instrument to be signed,
manually or in facsimile, by its Authorized Officer, as of the date set forth
below.

Date:  August 28, 2003

                                    HOUSEHOLD HOME EQUITY LOAN TRUST 2003-1

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

                                    By: ____________________________
                                            Authorized Signatory

               INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Date:  August 28, 2003

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

                                    By: ____________________________
                                            Authorized Signatory

                                     A-3
<PAGE>

                               (REVERSE OF NOTE)

     This Note is one of a duly authorized issue of Notes of the Trust,
designated as Closed-End Home Equity Loan Asset Backed Notes, Series 2003-1,
all issued under the Indenture, to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the
respective rights and obligations thereunder of the Trust, the Indenture
Trustee and the Holders of the Notes. The Notes are subject to all terms of
the Indenture.

     The Notes are and will be secured by the collateral pledged as security
therefor as provided in the Indenture.

     Principal of the Notes will be payable on each Payment Date in an amount
described on the face hereof. "Payment Date" means the 20th day of each month,
or, if any such date is not a Business Day, the next succeeding Business Day,
commencing in October 2003.

     As described above, the entire unpaid principal amount of this Note shall
be due and payable on the earlier of the Final Scheduled Payment Date and the
Redemption Date. Notwithstanding the foregoing, the entire unpaid principal
amount of the Notes shall be due and payable on the date on which an Event of
Default under the Indenture shall have occurred and be continuing and the
Indenture Trustee, upon the prior written direction of the Holders of Notes
representing not less than 66-2/3% of the Outstanding Amount of the Notes,
shall have declared the Notes to be immediately due and payable in the manner
provided in Section 5.2 of the Indenture. All principal payments on the Notes
shall be made pro rata to the Holders of the Notes entitled thereto.

     Payments of interest on this Note due and payable on each Payment Date,
together with the related installment of principal, if any, to the extent not
in full payment of this Note, shall be made by wire transfer of immediately
available funds to, or by check or money order mailed to the Person whose name
appears as the Registered Holder of this Note (or one or more Predecessor
Notes) on the Note Register as of the close of business on each Record Date,
or upon written request by a Noteholder delivered to the Indenture Trustee at
least five Business Days prior to such Record Date, by wire transfer (but only
if such Noteholder is the Depository or such Noteholder owns of record one or
more Notes having principal denominations aggregating at least $1,000,000) or
by such other means of payment as the Noteholder and the Indenture Trustee
shall agree. Such checks or money orders shall be mailed to the Person
entitled thereto at the address of such Person as it appears on the Note
Register as of the applicable Record Date without requiring that this Note be
submitted for notation of payment. Any reduction in the principal amount of
this Note (or any one or more Predecessor Notes) effected by any payments made
on any Payment Date shall be binding upon all future Holders of this Note and
of any Note issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof, whether or not noted hereon. If funds are expected
to be available, as provided in the Indenture, for payment in full of the then
remaining unpaid principal amount of this Note on a Payment Date, then the
Indenture Trustee, in the name of and on behalf of the Trust, will notify the
Person who was the Registered Holder hereof as of the Record Date preceding
such Payment Date by notice mailed or transmitted by facsimile prior to such
Payment Date, and the amount then due and payable shall be payable only upon
presentation and surrender of this Note at the

                                     A-4
<PAGE>

Indenture Trustee's principal Corporate Trust Office or at the office of the
Indenture Trustee's agent appointed for such purposes located in New York, New
York.

     As provided in the Sale and Servicing Agreement, the Notes may be
redeemed in whole, but not in part, at the option of the Master Servicer, on
any Payment Date after the Payment Date on which the Note Principal Amount of
the Notes is less than or equal to 15% of the aggregate Initial Note Principal
Amount of the Notes after giving effect to all payments on such Payment Date.

     As provided in the Indenture, if the full amount of principal and
interest then due on the Notes is not paid by the Payment Date in September
2013, the Indenture Trustee will begin an auction process for the sale of the
remaining Home Equity Loans. If the Indenture Trustee receives a bid meeting
the conditions specified in the Indenture, the remaining Home Equity Loans
will be sold and the Trust will use the proceeds of such sale to redeem the
Notes.

     As provided in the Indenture and subject to certain limitations set forth
therein, the transfer of this Note may be registered on the Note Register upon
surrender of this Note for registration of transfer at the office or agency
designated by the Trust pursuant to the Indenture, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, with such signature guaranteed by an
"eligible guarantor institution" meeting the requirements of the Note
Registrar, which requirements include membership or participation in the
Securities Transfer Agent's Medallion Program ("STAMP") or such other
"signature guarantee program" as may be determined by the Note Registrar in
addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended, and thereupon one or more new
Notes of authorized denominations and in the same aggregate principal amount
will be issued to the designated transferee or transferees. No service charge
will be charged for any registration of transfer or exchange of this Note, but
the Trust may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such
registration of transfer or exchange.

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

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of
a Note Owner, a beneficial interest in a Note, covenants and agrees that such
Noteholder or Note Owner

                                     A-5
<PAGE>

will not at any time institute against the Transferor (and any wholly-owned
subsidiary thereof), the Depositor, the Master Servicer or the Trust, or join
in any institution against the Transferor (and any wholly-owned subsidiary
thereof), the Depositor, the Master Servicer or the Trust of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States federal or state bankruptcy or similar law
in connection with any obligations relating to the Notes, this Indenture or
any of the Transaction Documents.

     Each Person that acquires a Note shall be required to represent, or in
the case of a Book-Entry Note, will be deemed to represent by its acceptance
of the Note, that (i) it is not, and is not acquiring the Note on behalf of or
with "plan assets" (as determined under Department of Labor Regulation
ss.2510.3-101 or otherwise) of an employee benefit plan or other plan that is
subject to Title I of ERISA or Section 4975 of the Code or any substantially
similar federal, state or local law ("Similar Law"), or (ii) its acquisition
and holding of the Note are eligible for relief under Prohibited Transaction
Class Exemption ("PTCE") 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23
or a similar exemption, or in the case of a plan subject to Similar Law, will
not result in a nonexempt violation of such Similar Law.

     The Trust has entered into the Indenture and this Note is issued with the
intention that, for federal, state and local income, single business and
franchise tax purposes, the Notes will qualify as indebtedness of the Trust
secured by the Trust Estate. Each Noteholder, by acceptance of a Note (and
each Note Owner by acceptance of a beneficial interest in a Note), agrees to
treat the Notes for all purposes as indebtedness of the Trust.

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

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trust and the rights of the Holders of the Notes under the Indenture at any
time by the Trust with the consent of the Majority Noteholder. The Indenture
also contains provisions permitting the Holders of Notes representing
specified percentages of the Outstanding Amount of the Notes, on behalf of the
Holders of all the Notes, to waive compliance by the Trust with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Note (or
any one or more Predecessor Notes) shall be conclusive and binding upon such
Holder and upon all future Holders of this Note and of any Note issued upon
the registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Note. The
Indenture also permits the Indenture Trustee to amend or waive certain terms
and conditions set forth in the Indenture without the consent of Holders of
the Notes issued thereunder.

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

                                     A-6
<PAGE>

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

     This Note and the Indenture shall be construed in accordance with the
laws of the State of New York, without reference to its conflict of law
provisions, and the obligations, rights and remedies of the parties hereunder
and thereunder shall be determined in accordance with such laws.

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

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

                                     A-7
<PAGE>

                                  ASSIGNMENT

Social Security or taxpayer I.D.  or other identifying number of assignee:
__________________

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

______________________________________________________________________________
                        (name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints , attorney, to transfer said Note on the books kept for
registration thereof, with full power of substitution in the premises.

Dated:_____________________

                                               ____________________________*/
                                              Signature Guaranteed:

                                               ____________________________*/

________________
*/ NOTICE: The signature to this assignment must correspond with the name of
the registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting
the requirements of the Note Registrar, which requirements include membership
or participation in STAMP or such other "signature guarantee program" as may
be determined by the Note Registrar in addition to, or in substitution for,
STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

                                     A-8

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