Document:

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                                                                     EXHIBIT 4.2

                                                                  EXECUTION COPY

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                        WFS FINANCIAL 2002-4 OWNER TRUST,
                                   as Issuer,

                                       and

                      DEUTSCHE BANK TRUST COMPANY AMERICAS,
                                   as Trustee

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

                                    INDENTURE

                          Dated as of November 1, 2002

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

                                 $1,350,000,000
                          Auto Receivable Backed Notes

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                                TABLE OF CONTENTS
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                                   ARTICLE ONE

                   DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.01.  Definitions...............................................................    2
Section 1.02.  Incorporation by Reference of Trust Indenture Act.........................   12
Section 1.03.  Rules of Construction.....................................................   12

                                   ARTICLE TWO

                                    THE NOTES
Section 2.01.  Form......................................................................   14
Section 2.02.  Execution, Authentication and Delivery....................................   14
Section 2.03.  Temporary Notes...........................................................   14
Section 2.04.  Registration; Registration of Transfer and Exchange.......................   15
Section 2.05.  Mutilated, Destroyed, Lost or Stolen Notes................................   16
Section 2.06.  Persons Deemed Owner......................................................   17
Section 2.07.  Payment of Principal and Interest; Defaulted Interest.....................   17
Section 2.08.  Cancellation..............................................................   19
Section 2.09.  Book-Entry Notes..........................................................   20
Section 2.10.  Notices to Clearing Agency................................................   20
Section 2.11.  Definitive Notes..........................................................   21
Section 2.12.  Release of Collateral.....................................................   21
Section 2.13.  Tax Treatment.............................................................   21

                                  ARTICLE THREE

                                    COVENANTS

Section 3.01.  Payment of Principal and Interest.........................................   22
Section 3.02.  Maintenance of Office or Agency...........................................   22
Section 3.03.  Money for Payments to be Held in Trust....................................   22
Section 3.04.  Existence.................................................................   24
Section 3.05.  Protection of Trust Estate................................................   24
Section 3.06.  Opinions as to Trust Estate...............................................   25
Section 3.07.  Performance of Obligations; Servicing of Contracts........................   25
Section 3.08.  Negative Covenants........................................................   27
Section 3.09.  Annual Statement as to Compliance.........................................   27
Section 3.10.  Issuer May Consolidate, etc. Only on Certain Terms........................   28
Section 3.11.  Successor or Transferee...................................................   30
Section 3.12.  No Other Business.........................................................   30
Section 3.13.  No Borrowing..............................................................   30
Section 3.14.  Master Servicer's Obligations.............................................   30
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Section 3.15.  Guarantees, Loans, Advances and Other Liabilities.........................   30
Section 3.16.  Capital Expenditures......................................................   31
Section 3.17.  Restricted Payments.......................................................   31
Section 3.18.  Notice of Events of Default...............................................   31
Section 3.19.  Further Instruments and Acts..............................................   31
Section 3.20.  Compliance with Laws......................................................   31
Section 3.21.  Amendments of Sale and Servicing Agreement and Trust Agreement............   31
Section 3.22.  Removal of Administrator..................................................   31

                                  ARTICLE FOUR

                           SATISFACTION AND DISCHARGE

Section 4.01.  Satisfaction and Discharge of Indenture...................................   32
Section 4.02.  Application of Trust Money................................................   33
Section 4.03.  Repayment of Monies Held by Paying Agent..................................   33

                                  ARTICLE FIVE

                                    REMEDIES

Section 5.01.  Events of Default.........................................................   34
Section 5.02.  Rights upon Event of Default..............................................   35
Section 5.03.  Collection of Indebtedness and Suits for Enforcement by Trustee;
               Authority of Controlling Party............................................   36
Section 5.04.  Remedies..................................................................   38
Section 5.05.  Optional Preservation of the Contracts....................................   39
Section 5.06.  Priorities................................................................   40
Section 5.07.  Limitation of Suits.......................................................   40
Section 5.08.  Unconditional Rights of Noteholders to Receive Principal and Interest.....   41
Section 5.09.  Restoration of Rights and Remedies........................................   41
Section 5.10.  Rights and Remedies Cumulative............................................   42
Section 5.11.  Delay or Omission Not a Waiver............................................   42
Section 5.12.  Control by Noteholders....................................................   42
Section 5.13.  Waiver of Past Defaults...................................................   42
Section 5.14.  Undertaking for Costs.....................................................   43
Section 5.15.  Waiver of Stay or Extension Laws..........................................   43
Section 5.16.  Action on Notes...........................................................   43
Section 5.17.  Performance and Enforcement of Certain Obligations........................   44
Section 5.18.  Claims Under Note Policy..................................................   44
Section 5.19.  Preference Claims.........................................................   45
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                                   ARTICLE SIX

                                   THE TRUSTEE
Section 6.01.  Duties of Trustee.........................................................   47
Section 6.02.  Rights of Trustee.........................................................   49
Section 6.03.  Individual Rights of Trustee..............................................   50
Section 6.04.  Trustee's Disclaimer......................................................   50
Section 6.05.  Notice of Defaults........................................................   50
Section 6.06.  Reports by Trustee to Holders.............................................   50
Section 6.07.  Compensation and Indemnity................................................   50
Section 6.08.  Replacement of Trustee....................................................   51
Section 6.09.  Successor Trustee by Merger...............................................   52
Section 6.10.  Appointment of Co-Trustee or Separate Trustee.............................   53
Section 6.11.  Eligibility; Disqualification.............................................   54
Section 6.12.  Preferential Collection of Claims Against Issuer..........................   54
Section 6.13.  Representations and Warranties of Trustee.................................   54
Section 6.14.  Sales Finance Licenses....................................................   54

                                  ARTICLE SEVEN

                         NOTEHOLDERS' LISTS AND REPORTS

Section 7.01.  Issuer to Furnish Trustee Names and Addresses of Noteholders..............   55
Section 7.02.  Preservation of Information; Communications to Noteholders................   55
Section 7.03.  Reports by Issuer.........................................................   55
Section 7.04.  Reports by Trustee........................................................   56

                                  ARTICLE EIGHT

                      ACCOUNTS, DISBURSEMENTS AND RELEASES

Section 8.01.  Collection of Money.......................................................   57
Section 8.02.  Trust Accounts............................................................   57
Section 8.03.  General Provisions Regarding Accounts.....................................   57
Section 8.04.  Release of Trust Estate...................................................   58
Section 8.05.  Opinion of Counsel........................................................   59

                                  ARTICLE NINE

                             SUPPLEMENTAL INDENTURES

Section 9.01.  Supplemental Indentures Without Consent of Noteholders....................   60
Section 9.02.  Supplemental Indentures With Consent of Noteholders.......................   61
Section 9.03.  Execution of Supplemental Indentures......................................   62
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Section 9.04.  Effect of Supplemental Indenture..........................................   63
Section 9.05.  Conformity With Trust Indenture Act.......................................   63
Section 9.06.  Reference in Notes to Supplemental Indentures.............................   63

                                   ARTICLE TEN

                               REDEMPTION OF NOTES

Section 10.01.  Redemption...............................................................   64
Section 10.02.  Form of Redemption Notice................................................   64
Section 10.03.  Notes Payable on Redemption Date.........................................   65

                                 ARTICLE ELEVEN

                                  MISCELLANEOUS

Section 11.01.  Compliance Certificates and Opinions, etc................................   66
Section 11.02.  Form of Documents Delivered to Trustee...................................   67
Section 11.03.  Acts of Noteholders......................................................   68
Section 11.04.  Notices, etc., to Trustee, Issuer, Insurer and Rating Agencies...........   69
Section 11.05.  Notices to Noteholders; Waiver...........................................   70
Section 11.06.  Alternate Payment and Notice Provisions..................................   70
Section 11.07.  Conflict With Trust Indenture Act........................................   70
Section 11.08.  Effect of Headings and Table of Contents.................................   71
Section 11.09.  Successors and Assigns...................................................   71
Section 11.10.  Severability.............................................................   71
Section 11.11.  Benefits of Indenture....................................................   71
Section 11.12.  Legal Holidays...........................................................   71
Section 11.13.  Governing Law............................................................   71
Section 11.14.  Counterparts.............................................................   71
Section 11.15.  Recording of Indenture...................................................   71
Section 11.16.  Trust Obligation.........................................................   72
Section 11.17.  No Petition..............................................................   72
Section 11.18.  Inspection...............................................................   72
Section 11.19.  Limitation of Liability of Owner Trustee.................................   72
Section 11.20.  Limitation on Recourse Against WFSRC.....................................   73

EXHIBITS
Schedule A   -  Schedule of Contracts.................................................... SA-1
Exhibit A    -  Form of Sale and Servicing Agreement.....................................  A-1
Exhibit B    -  Form of Depository Agreement.............................................  B-1
Exhibit C    -  Form of Class A-1 Note...................................................  C-1
Exhibit D    -  Form of Class A-2 Note...................................................  D-1
Exhibit E    -  Form of Class A-3A Note..................................................  E-1
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Exhibit F    -  Form of Class A-3B Note..................................................  F-1
Exhibit G    -  Form of Class A-4A Note..................................................  G-1
Exhibit H    -  Form of Class A-4B Note..................................................  H-1
Exhibit I    -  Form of Note Assignment..................................................  I-1
Exhibit J    -  Form of Note Policy......................................................  J-1
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<PAGE>
        This Indenture, dated as of November 1, 2002, is between WFS Financial
2002-4 Owner Trust, a Delaware statutory trust (the "Issuer"), and Deutsche Bank
Trust Company Americas, a New York banking corporation, in its capacity as
trustee (the "Trustee") and not in its individual capacity.

        Each party agrees as follows for the benefit of the other parties and
for the equal and ratable benefit of the holders of the Issuer's 1.67625% Class
A-1 Notes (the "Class A-1 Notes"), Floating Rate Class A-2 Notes (the "Class A-2
Notes"), 2.39% Class A-3A Notes (the "Class A-3A Notes"), Floating Rate Class
A-3B Notes (the "Class A-3B Notes"), 3.11% Class A-4A Notes (the "Class A-4A
Notes") and Floating Rate Class A-4B Notes (the "Class A-4B Notes" and, together
with the Class A-1 Notes, the Class A-2 Notes, the Class A-3A Notes, the Class
A-3B Notes and the Class A4A, the "Notes"):

                                 GRANTING CLAUSE

        The Issuer hereby Grants to the Trustee on the Closing Date, on behalf
of and for the benefit of the Holders of the Notes, without recourse, all of the
Issuer's right, title and interest (exclusive of the amount, if any, allocable
to any rebatable insurance premium financed by any Contract) in, to and under
(i) the Contracts secured by the Financed Vehicles (which Contracts shall be
listed in the Schedule of Contracts); (ii) certain monies due under the
Contracts on and after November 13, 2002, including, without limitation, all
payments of Monthly P&I with respect to any Financed Vehicle to which a Contract
relates received on or after November 13, 2002 and all other proceeds received
on or in respect of such Contracts; (iii) security interests in the Financed
Vehicles; (iv) a financial guaranty insurance policy to be issued by Financial
Security for the exclusive benefit of Noteholders, which will unconditionally
and irrevocably guarantee payment of the Scheduled Payments on each Distribution
Date; (v) amounts on deposit in the Collection Account, the Note Distribution
Account and the Spread Account, including all Eligible Investments therein and
all income from the investment of funds therein and all proceeds therefrom; (vi)
proceeds from claims under certain insurance policies in respect of individual
Financed Vehicles or obligors under the Contracts; (vii) certain rights under
the Sale and Servicing Agreement; (viii) the protective security interest in
certain of the above-described property granted by the Seller in favor of the
Issuer; (ix) all present and future claims, demands, causes and choses in action
in respect of any or all of the foregoing; (x) the Issuer's interest in the
Interest Rate Swap Agreement; and (xi) 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, 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 (as each such defined term is defined in Section 1.01) (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.

<PAGE>
        The Trustee, as Trustee on behalf of the Holders of the Notes,
acknowledges such Grant, accepts the trusts under this Indenture in accordance
with the provisions of this Indenture 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.

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

                                   ARTICLE ONE

                   DEFINITIONS AND INCORPORATION BY REFERENCE

        Section 1.01. Definitions.

        (a) Except as otherwise specified herein or as the context may otherwise
require, the following terms have the respective meanings set forth below for
all purposes of this Indenture. Capitalized terms used herein that are not
otherwise defined herein has the meaning ascribed thereto in the Sale and
Servicing Agreement.

        "Act" has the meaning specified in Section 11.03(a).

        "Administration Agreement" means the Administration Agreement, dated as
of the date hereof, among the Administrator, the Issuer, the Seller and the
Trustee, as the same may be amended or supplemented from time to time.

        "Administrator" means the Master Servicer, or any successor
Administrator under the Administration Agreement.

        "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 Trustee on the Closing Date (as such list
may be modified or supplemented from time to time thereafter) and, so long as
the Administration Agreement is in effect, any Vice President or more senior
officer of the Administrator who is authorized to act for the Administrator in
matters relating to the Issuer and to be acted upon by the Administrator
pursuant to the Administration Agreement and who is identified on the foregoing
list of Authorized Officers.

                                       2
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        "Basic Documents" means the Certificate of Trust, the Trust Agreement,
the Sale and Servicing Agreement, the Administration Agreement, the Note
Depository Agreement, the Insurance Agreement, the Note Policy, the Interest
Rate Swap Agreement and this Indenture.

        "Book-Entry Notes" means a beneficial interest in the Notes, ownership
and transfers of which shall be made through book entries by a Clearing Agency
as described in Section 2.09.

        "Business Day" means any day other than a Saturday, Sunday or other day
on which banking institutions in Los Angeles, California, Newark, Delaware or
New York, New York are authorized or obligated by law, executive order or
governmental decree to remain closed.

        "Certificate of Trust" means the Certificate of Trust of the Issuer
substantially in the form of Exhibit B to the Trust Agreement.

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

        "Class A-1 Final Scheduled Distribution Date" means the November 2003
Distribution Date.

        "Class A-1 Noteholder" means the Person in whose name a Class A-1 Note
is registered in the Note Register.

        "Class A-1 Notes" means the Class A-1 Notes, substantially in the form
of Exhibit C.

        "Class A-1 Rate" means 1.67625% per annum.

        "Class A-2 Final Scheduled Distribution Date" means the August 2005
Distribution Date.

        "Class A-2 Noteholder" means the Person in whose name a Class A-2 Note
is registered in the Note Register.

        "Class A-2 Notes" means the Class A-2 Notes, substantially in the form
of Exhibit D.

        "Class A-2 Rate" means the lesser of (i) the sum of (a) the LIBOR Rate
and (b) 0.11% per annum and (ii) the maximum rate permitted by applicable law.

        "Class A-3 Final Scheduled Distribution Date" means the August 2007
Distribution Date.

        "Class A-3A Rate" means 2.39% per annum.

        "Class A-3A Noteholder" means the Person in whose name a Class A-3A Note
is registered in the Note Register.

        "Class A-3A Notes" means the Class A-3A Notes, substantially in the form
of Exhibit E.

        "Class A-3B Noteholder" means the Person in whose name a Class A-3B Note
is registered in the Note Register.

                                       3
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        "Class A-3B Notes" means the Class A-3B Notes, substantially in the form
of Exhibit F.

        "Class A-3B Rate" means the lesser of (i) the sum of (a) the LIBOR Rate
and (b) 0.17% per annum and (ii) the maximum rate permitted by applicable law.

        "Class A-4 Final Scheduled Distribution Date" means the August 2010
Distribution Date.

        "Class A-4A Noteholder" means the Person in whose name a Class A-4A Note
is registered in the Note Register.

        "Class A-4A Notes" means the Class A-4A Notes, substantially in the form
of Exhibit G.

        "Class A-4A Rate" means 3.11% per annum.

        "Class A-4B Noteholder" means the Person in whose name a Class A-4B Note
is registered in the Note Register.

        "Class A-4B Notes" means the Class A-4B Notes, substantially in the form
of Exhibit H.

        "Class A-4B Rate" means the lesser of (i) the sum of (a) the LIBOR Rate
and (b) 0.28% per annum and (ii) the maximum rate permitted by applicable law.

        "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 November 14, 2002.

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

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

        "Contracts" has the meaning specified in the Sale and Servicing
Agreement.

        "Controlling Party" means the Insurer, so long as no Insurer Default
shall have occurred and be continuing and any of the Notes are Outstanding, and
the Trustee, for so long as an Insurer Default shall have occurred and be
continuing or if none of the Notes are Outstanding.

        "Corporate Trust Office" means the principal office of the Trustee at
which at any particular time its corporate trust business shall be administered
which office at date of the execution of this Indenture is located at 60 Wall
Street, New York, New York 10005, Attention: Corporate Trust & Agency Services
-- Structured Finance Services; or at such other address as the Trustee may
designate from time to time by notice to the Noteholders, the Insurer and the
Issuer, or the principal corporate trust office of any successor Trustee (the
address of which the successor Trustee will notify the Noteholders, the Insurer
and the Issuer).

                                       4
<PAGE>
        "Cut-Off Date" has the meaning specified in the Sale and Servicing
Agreement.

        "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 Section 2.09.

        "Distribution Date" means each February 20, May 20, August 20 and
November 20 or, if any such date shall not be a Business Day, the next
succeeding Business Day, commencing August 20, 2002.

        "Distribution Date Statement" has the meaning specified in the Sale and
Servicing Agreement.

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

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

        "Event of Default" has the meaning specified in Section 5.01.

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

        "Executive Officer" means, with respect to any corporation or depository
institution, the chief executive officer, chief operating officer, chief
financial officer, president, executive vice president, any vice president, the
secretary or the treasurer of such corporation or depository institution; and
with respect to any partnership, any general partner thereof.

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

        "Financed Vehicle" has the meaning specified in the Sale and Servicing
Agreement.

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

        "Grant" means mortgage, pledge, bargain, sell, 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 or of 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 monies 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" means the Person in whose name a Note is registered on the Note
Register.

                                       5
<PAGE>
        "Indebtedness" means, with respect to any Person at any time, (i)
indebtedness or liability of such Person for borrowed money whether or not
evidenced by bonds, debentures, notes or other instruments, or for the deferred
purchase price of property or services (including trade obligations); (ii)
obligations of such Person as lessee under leases which should have been or
should be, in accordance with generally accepted accounting principles, recorded
as capital leases; (iii) current liabilities of such Person in respect of
unfunded vested benefits under plans covered by Title IV of ERISA; (iv)
obligations issued for or liabilities incurred on the account of such Person;
(v) obligations or liabilities of such Person arising under acceptance
facilities; (vi) obligations of such Person under any guaranties, endorsements
(other than for collection or deposit in the ordinary course of business) and
other contingent obligations to purchase, to provide funds for payment, to
supply funds to invest in any Person or otherwise to assure a creditor against
loss; (vii) obligations of such Person secured by any lien on property or assets
of such Person, whether or not the obligations have been assumed by such Person;
or (viii) obligations of such Person under any interest rate or currency
exchange agreement.

        "Indenture" means this Indenture, as the same may be amended or
supplemented from time to time.

        "Independent" means, when used with respect to any specified Person,
that the Person (i) is in fact independent of the Issuer, any other obligor upon
the Notes, either Seller and any of their respective Affiliates, (ii) does not
have any direct financial interest or any material indirect financial interest
in the Issuer, any such other obligor, either Seller or any of their respective
Affiliates, and (iii) is not connected with the Issuer, any such other obligor,
either Seller or any of their respective Affiliates as an officer, employee,
promoter, underwriter, trustee, partner, director or person performing similar
functions; provided that a person who is an Independent director or Independent
officer of the Seller may be an Independent director or Independent officer of
an Affiliate of the Seller which is a special purpose bankruptcy remote entity.

        "Independent Certificate" means a certificate or opinion to be delivered
to the Trustee under the circumstances described in, and otherwise complying
with, the applicable requirements of Section 11.01, made by an Independent
appraiser or other expert appointed by an Issuer Order and approved by the
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.

        "Insurance Agreement" means the Insurance, Indemnity and Pledge
Agreement, dated as of the date hereof, among the Insurer, the Issuer, the
Seller, the Master Servicer and the Trustee, as the same may be amended or
supplemented from time to time.

        "Insurance Agreement Obligations" means, as of any date, the aggregate
amounts owing to the Insurer under the Insurance Agreement as of such date,
other than amounts representing payments made under the Note Policy for which
the Insurer has not yet been reimbursed.

        "Insurer" means Financial Security, and its successors.

                                       6
<PAGE>
        "Insurer Default" means the occurrence and continuance of any of the
following:

                (i) the Insurer shall have failed to make a payment required to
        be made under the Note Policy;

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

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

        "Interest Period" has the meaning specified in the Sale and Servicing
Agreement.

        "Interest Rate" means the Class A-1 Rate, the Class A-2 Rate, the Class
A-3A Rate, the Class A-3B Rate, the Class A-4A Rate or the Class A-4B Rate, as
applicable.

        "Interest Rate Swap Agreement" has the meaning specified in the Sale and
Servicing Agreement, as the same may be amended or supplemented from time to
time.

        "Issuer" means WFS Financial 2002-4 Owner Trust until a permitted
successor replaces it and, thereafter, means the successor and, for purposes of
any provision contained herein and required by the TIA, each other obligor on
the Notes.

        "Issuer Order" and "Issuer Request" means a written order or request
signed in the name of the Issuer by an Authorized Officer and delivered to the
Trustee.

        "LIBOR Rate" has the meaning specified in the Sale and Servicing
Agreement.

        "Monthly P&I" has the meaning specified in the Sale and Servicing
Agreement.

        "Master Servicer" means WFS, in its capacity as master servicer under
the Sale and Servicing Agreement, and any successor Master Servicer thereunder.

        "Master Servicer Report Date" has the meaning specified in the Sale and
Servicing Agreement.

        "Net Swap Payments" has the meaning specified in the Sale and Servicing
Agreement.

                                       7
<PAGE>
        "Note" means a Class A-1 Note, a Class A-2 Note, a Class A-3A Note, a
Class A-3B Note, a Class A-4A Note or a Class A-4B Note.

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

        "Note Depository Agreement" means the agreement dated November 13, 2002,
among the Issuer, the Trustee and DTC, as the initial Clearing Agency, relating
to the Notes, substantially in the form of Exhibit B hereto.

        "Note Distribution Account" has the meaning specified in the Sale and
Servicing Agreement.

        "Note Owner" means, with respect to a Book-Entry Note, the Person who is
the 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 Policy" means the Financial Guaranty Insurance Policy issued by
the Insurer with respect to the Notes, including any endorsements thereto,
substantially in the form of Exhibit J hereto.

        "Note Policy Claim Amount" has the meaning specified in Section 5.18(a).

        "Note Register" and "Note Registrar" have the respective meanings
specified in Section 2.04.

        "Notice of Claim" has the meaning specified in Section 5.18(b).

        "Officer's Certificate" means a certificate signed by an Authorized
Officer of the Issuer, under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 11.01, and delivered to
the Trustee.

        "Opinion of Counsel" means one or more written opinions of counsel who
may, except as otherwise expressly provided in this Indenture, be an employee of
or counsel to the Issuer and who shall be satisfactory to the Trustee and, if
addressed to the Insurer, satisfactory to the Insurer, and which shall comply
with any applicable requirements of Section 11.01, and shall be in form and
substance satisfactory to the Trustee, and if addressed to the Insurer,
satisfactory to the Insurer.

        "Outstanding" means, as of the date of determination, all Notes
theretofore authenticated and delivered under this Indenture except:

                (i) Notes theretofore cancelled 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 Trustee or
        any Paying Agent in trust for

                                       8
<PAGE>
        the Holders of such Notes (provided, however, that if such Notes are to
        be redeemed, notice of such redemption has been duly given pursuant to
        this Indenture or provision for such notice has been made, satisfactory
        to the Trustee, has been made); and

               (iii) Notes in exchange for or in lieu of other Notes which have
        been authenticated and delivered pursuant to this Indenture unless proof
        satisfactory to the Trustee is presented that any such Notes are held by
        a protected purchaser (as such term is defined in Article 8 of the UCC);

provided, however, that Notes which have been paid with proceeds of the Note
Policy shall continue to remain Outstanding for purposes of this Indenture until
the Insurer has been paid as subrogee hereunder or reimbursed pursuant to the
Insurance Agreement as evidenced by a written notice delivered to the Trustee
from the Insurer, and the Insurer shall be deemed to be the Holder thereof to
the extent of any payments thereon made by the Insurer; provided, further, that
in determining whether the Holder of the requisite Outstanding Amount have given
any request, demand, authorization, direction, notice, consent or waiver
hereunder or under any other Basic Document, Notes owned by the Issuer, any
other obligor upon the Notes, the Seller, WFS or any of their respective
Affiliates shall be disregarded and deemed not to be Outstanding prior to the
Policy Expiration Date, except that, in determining whether the Trustee shall be
protected in relying upon any such request, demand, authorization, direction,
notice, consent or waiver, only Notes that the 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
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 Seller, WFS or
any of their respective Affiliates.

        "Outstanding Amount" means the aggregate principal amount of all Notes
of one Class or of all Classes, as the case may be, Outstanding at the date of
determination.

        "Owner Trustee" means Chase Manhattan Bank USA, National Association,
not in its individual capacity but solely as Owner Trustee under the Trust
Agreement, or any successor trustee under the Trust Agreement.

        "Paying Agent" means the Trustee or any other Person that meets the
eligibility standards for the Trustee specified in Section 6.11 and, so long as
no Insurer Default shall have occurred and be continuing, is consented to by the
Insurer and is authorized by the Issuer to make the distributions from the Note
Distribution Account, including payment of principal of or interest on the Notes
on behalf of the Issuer.

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

        "Policy Expiration Date" means the date on which the Notes have been
paid in full and all outstanding Reimbursement Obligations and other amounts due
to the Insurer have been paid in full and the "Term Of This Policy" (as defined
in the Note Policy) has expired.

                                       9
<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 Section 2.05 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.

        "Preference Claim" has the meaning specified in Section 5.19(b).

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

        "Rating Agency" means each of Moody's and Standard & Poor's.

        "Rating Agency Condition" means, with respect to any action, that (i)
Standard & Poor's shall have been given ten Business Days (or such shorter
period as is acceptable to Standard & Poor's) prior notice thereof and that
Standard & Poor's shall have notified the Seller, the Master Servicer, the
Insurer and the Issuer in writing that such action will not result in a
qualification, reduction or withdrawal of its then-current rating of any Class
of Notes and will not result in an increased capital charge to the Insurer and
(ii) Moody's shall have been given ten Business Days (or such shorter period as
is acceptable to Moody's) prior notice thereof and copies of all documentation
relating to the event requiring such Rating Agency Condition.

        "Record Date" means, with respect to a Distribution Date or Redemption
Date, the close of business on the Business Day immediately preceding such
Distribution Date or Redemption Date, or, in the event that Definitive Notes are
issued, the close of business on the 15th day of the month immediately preceding
the month in which such Distribution Date or Redemption Date occurs.

        "Redemption Date" means in the case of a redemption of the Notes
pursuant to Section 10.01(a) or a payment to Noteholders pursuant to Section
10.01(b), the Distribution Date specified by the Master Servicer or the Issuer
pursuant to Section 10.01(a) or 10.01(b), as the case may be.

        "Redemption Price" means (i) in the case of a redemption of the Notes
pursuant to Section 10.01(a) and Section 9.01(a) of the Sale and Servicing
Agreement, an amount equal to the unpaid principal amount of the Notes redeemed
plus accrued and unpaid interest thereon for each Class of Notes being so
redeemed to but excluding the Redemption Date or (ii) in the case of a payment
made to Noteholders pursuant to Section 10.01(b), the amount on deposit in the
Note Distribution Account, but not in excess of the amount specified in clause
(i) above.

        "Responsible Officer" means, with respect to the Trustee, any officer
within the Corporate Trust and Agency Group (or any successor group of the
Trustee), including any vice president, assistant secretary or other officer or
assistant officer of the Trustee customarily performing function similar to
those performed by the people who at such time shall be officers, respectively,
or to whom any corporate trust matter is referred at the Corporate Trust Office
of the Trustee because of his knowledge of and familiarity with the particular
subject.

                                       10
<PAGE>
        "Sale and Servicing Agreement" means the Sale and Servicing Agreement,
dated as of the date hereof, among the Issuer, the Seller and the Master
Servicer, substantially in the form of Exhibit A hereto, as the same may be
amended or supplemented from time to time.

        "Schedule of Contracts" means the listing of the Contracts set forth in
Schedule A hereto.

        "Scheduled Payments" has the meaning specified therefor in the Note
Policy.

        "Seller" means WFS Receivables Corporation, in its capacity as seller
under the Sale and Servicing Agreement, and its respective successors.

        "Servicing Fee" has the meaning specified in the Sale and Servicing
Agreement.

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

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

        "Swap Counterparty" has the meaning specified in the Sale and Servicing
Agreement.

        "Swap Termination Payments" has the meaning specified in the Sale and
Servicing Agreement.

        "Termination Date" means the latest of (i) the expiration of the Note
Policy and the return of the Note Policy to the Insurer for cancellation, (ii)
the date on which the Insurer shall have received payment and performance of all
amounts and obligations which the Issuer may owe to or on behalf of the Insurer
under this Indenture and (iii) the date on which the Trustee shall have received
payment and performance of all amounts and obligations which the Issuer may owe
to or on behalf of the Trustee for the benefit of the Noteholders under this
Indenture or the Notes.

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

        "Trust Agreement" means the Trust Agreement, dated October 28, 2002, as
amended and restated as of November 14, 2002, among the Seller, the Insurer and
the Owner Trustee, , as the same may be amended or supplemented from time to
time.

        "Trust Estate" means the Collateral Granted to the Trustee under this
Indenture, including all proceeds thereof.

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

        "Trustee" means Deutsche Bank Trust Company Americas, as Trustee under
this Indenture, or any successor Trustee under this Indenture.

                                       11
<PAGE>
        "UCC" means, unless the context otherwise requires, the Uniform
Commercial Code, as in effect in the relevant jurisdiction, as amended from time
to time.

        "United States" means the United States of America.

        "Unreimbursed Insurer Amounts" means, on any date, the amount that is
the sum of (i) all payments (if any) made under the Note Policy for which the
Insurer has not yet been reimbursed as of such date, plus (ii) all Insurance
Agreement Obligations as of such date.

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

        "WFSRC" means WFS Receivables Corporation, a California corporation, and
its successors.

        (b) Except as otherwise specified herein or as the context may otherwise
require, capitalized terms used herein that are not otherwise defined shall have
the meanings ascribed thereto in the Sale and Servicing Agreement.

        Section 1.02. Incorporation by Reference of Trust Indenture Act.
Whenever this Indenture refers to a provision of the Trust Indenture Act
("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.

        "Indenture Trustee" or "Institutional Trustee" means the 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 by the TIA,
defined by a TIA reference to another statute or defined by Commission rule have
the meaning assigned to them by such definitions.

        Section 1.03. 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; (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 and
includes (in the case of agreements or instruments) references to

                                       12
<PAGE>
all attachments thereto and instruments incorporated therein; (vii) references
to a Person are also to its permitted successors and assigns; (viii) the words
"hereof," "herein" and "hereunder" and words of similar import when used in this
Indenture shall refer to this Indenture as a whole and not to any particular
provision of this Indenture; and (ix) Section, subsection and Schedule
references contained in this Indenture are references to Sections, subsections
and Schedules in or to this Indenture unless otherwise specified.

                                       13
<PAGE>

                                   ARTICLE TWO

                                    THE NOTES

        Section 2.01. Form. The Class A-1 Notes, the Class A-2 Notes, the Class
A-3A Notes, the Class A-3B Notes, the Class A-4A Notes and the Class A-4B Notes,
in each case together with the Trustee's certificate of authentication, shall be
in substantially the forms set forth as Exhibits to this Indenture 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, consistently herewith, be determined by the officers executing such Notes,
as evidenced by their execution of the Notes. 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.

        Each Note shall be dated the date of its authentication. The terms of
the Notes set forth in Exhibits hereto are part of the terms of this Indenture.

        Section 2.02. Execution, Authentication and Delivery. The Notes shall be
executed on behalf of the Issuer by any of its Authorized Officers. 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 Issuer 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 Trustee shall, upon receipt of the Note Policy and an Issuer Order,
authenticate and deliver for original issue the following aggregate principal
amount of Notes: (i) $245,000,000 of Class A-1 Notes, (ii) $280,000,000 of Class
A-2 Notes, (iii) $325,000,000 of Class A-3A Notes, (iv) $175,000,000 of Class
A-3B Notes, (v) $163,000,000 of Class A-4A Notes and (vi) $162,000,000 of Class
A-4B Notes. The aggregate principal amount of Class A-1 Notes, Class A-2 Notes,
Class A-3A Notes, the Class A-3B Notes, the Class A-4A Notes and Class A-4B
Notes outstanding at any time may not exceed such respective amounts, except as
otherwise provided in Section 2.05.

        Each Note shall be dated the date of its authentication. The Notes shall
be issuable as registered Notes in the minimum denomination of $1,000 and in
integral 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 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.

        Section 2.03. Temporary Notes. Subject to Section 2.09, pending the
preparation of Definitive Notes, the Issuer may execute, and upon receipt of an
Issuer Order the Trustee shall

                                       14
<PAGE>
authenticate and deliver, temporary Notes that are printed, lithographed,
typewritten, mimeographed or otherwise produced, of the tenor of the Definitive
Notes in lieu of which they are issued and with such variations not inconsistent
with the terms of this Indenture as the officers executing such Notes may
determine, as evidenced by their execution of such Notes.

        If temporary Notes are issued, the Issuer will cause Definitive Notes to
be prepared without unreasonable delay. After the preparation of Definitive
Notes, the temporary Notes shall be exchangeable for Definitive Notes upon
surrender of the temporary Notes at the office or agency of the Issuer to be
maintained as provided in Section 3.02, without charge to the related Holder.
Upon surrender for cancellation of any one or more temporary Notes, the Issuer
shall execute, and the Trustee shall authenticate and deliver in exchange
therefor, a like tenor and principal amount of Definitive Notes of authorized
denominations. Until so exchanged, the temporary Notes shall in all respects be
entitled to the same benefits under this Indenture as Definitive Notes.

        Section 2.04. 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
Trustee shall be the initial "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 Note Registrar.

        If a Person other than the Trustee is appointed by the Issuer as Note
Registrar, the Issuer will give the 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 Trustee shall have the right to inspect
the Note Register at all reasonable times and to obtain copies thereof, and the
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 3.02, provided that
the requirements of Section 8-401 of the UCC are met, the Issuer shall execute,
and the Trustee shall authenticate and the Noteholder shall obtain from the
Trustee, in the name of the designated transferee or transferees, one or more
new Notes of the same Class in any authorized denominations, of a like aggregate
principal amount.

        At the option of a Holder, Notes may be exchanged for other Notes of the
same Class 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, provided that the
requirements of Section 8-401 of the UCC are met, the Issuer shall execute, and
the Trustee shall authenticate and the Noteholder shall obtain from the Trustee,
the Notes which the Noteholder making the exchange is entitled to receive.

                                       15
<PAGE>
        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 Trustee duly executed by, the Holder
thereof or such Holder's attorney duly authorized in writing, with such
signature guaranteed by a commercial bank or trust company located, or having a
correspondent located, in The City of New York or the city in which the
Corporate Trust Office is located, or by a member firm of a national securities
exchange, and such other documents as the Trustee may require.

        No service charge shall be made to a Holder for any registration of
transfer or exchange of Notes, but the Issuer or the Trustee 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 exchange of Notes,
other than exchanges pursuant to Section 2.03 or 9.06 not involving any
transfer.

        The preceding provisions of this Section notwithstanding, the Issuer
shall not be required to make and the Note Registrar need not register transfers
or exchanges of Notes selected for redemption or of any Note for a period of 15
days preceding the due date for the payment in full of such Note.

        Copies of this Indenture (without exhibits) may be obtained by
Noteholders upon request in writing to the Trustee at the Corporate Trust
Office.

        Section 2.05. Mutilated, Destroyed, Lost or Stolen Notes. If (i) any
mutilated Note is surrendered to the Trustee, or the Trustee receives evidence
to its satisfaction of the destruction, loss or theft of any Note, (ii) there is
delivered to the Trustee and the Insurer (unless an Insurer Default shall have
occurred and be continuing) such security or indemnity as may be required by
them to hold the Issuer, the Trustee and the Insurer harmless and (iii) the
requirements of Section 8-405 of the UCC are met, then, in the absence of notice
to the Issuer, the Note Registrar or the Trustee that such Note has been
acquired by a protected purchaser (as defined in Article 8 of the UCC), the
Issuer shall execute and upon its request the Trustee shall authenticate and
deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or
stolen Note, a replacement Note of the same Class; 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 protected purchaser (as defined in Article 8 of the UCC)
of the original Note in lieu of which such replacement Note was issued presents
for payment such original Note, the Issuer, the Insurer and the 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 protected purchaser (as defined in Article 8 of the UCC), and
shall be entitled to recover upon the security or indemnity

                                       16
<PAGE>
provided therefor to the extent of any loss, damage, cost or expense incurred by
the Issuer or the Trustee in connection therewith.

        Upon the issuance of any replacement Note under this Section, the Issuer
or the Trustee 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 Trustee or the Note Registrar) connected therewith.

        Every replacement Note issued pursuant to this Section 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 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 2.06. Persons Deemed Owner. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Trustee, the Insurer and
any of their respective agents 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, if any, on such Note
and for all other purposes whatsoever, whether or not such Note be overdue, and
none of the Issuer, the Insurer, the Trustee nor any of their respective agents
shall be affected by notice to the contrary.

        Section 2.07. Payment of Principal and Interest; Defaulted Interest.

        (a) Each Class of Notes shall accrue interest at the related Interest
Rate, and such interest shall be payable on each Distribution Date as specified
in Article Five of the Sale and Servicing Agreement and in the form of the
related Note set forth as an Exhibit hereto, subject to Section 3.01. Any
installment of interest or principal, if any, payable on any Note which is
punctually paid or duly provided for by the Issuer on the applicable
Distribution Date shall be paid to the Person in whose name such Note (or one or
more Predecessor Notes) is registered on the Record Date, by check mailed
first-class, postage prepaid to such Person's address as it appears on the Note
Register on such Record Date, except that, unless Definitive Notes have been
issued pursuant to Section 2.11, with respect to Notes registered on the Record
Date in the name of the nominee of the Clearing Agency (initially, such nominee
to be Cede & Co.), payment will be made by wire transfer in immediately
available funds to the account designated by such nominee and except for the
final installment of principal payable with respect to such Note on a
Distribution Date, a Redemption Date or on the related Final Scheduled
Distribution Date, as the case may be, which, in the case of the payment of a
redemption pursuant to Section 10.01(a), shall be payable pursuant to Section
9.01(e) of the Sale and Servicing Agreement, and in each other case shall be
payable as provided below. The funds represented by any such checks returned
undelivered shall be held in accordance with Section 3.03.

                                       17
<PAGE>
        (b) Subject to Sections 2.07(e), 5.02(a) and 5.06(a), the principal of
each Note shall be payable on each Distribution Date to the extent provided in
Article Five of the Sale and Servicing Agreement and in the form of the related
Note set forth as an Exhibit hereto. The Trustee shall notify the Person in
whose name a Note is registered at the close of business on the Record Date
preceding the Distribution 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 within five Business Days of such Distribution Date (or, in the
case of Notes registered in the name of Cede & Co., as nominee of DTC, such
notice shall be provided within one Business Day of such Distribution Date) or
receipt of notice of termination of the Issuer pursuant to Section 9.01(c) of
the Trust Agreement 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 10.02. In addition, the Administrator shall
notify the Rating Agencies upon the final payment of interest and principal of
each Class of Notes, and upon the termination of the Issuer, in each case
pursuant to Section 1(a)(i) of the Administration Agreement.

        (c) If the Issuer defaults in a payment of interest on the Notes, the
Issuer shall pay defaulted interest (plus interest on such defaulted interest to
the extent lawful) at the applicable Interest Rate in any lawful manner. The
Issuer may pay such defaulted interest to the Persons who are Noteholders on a
subsequent special record date, which date shall be at least five Business Days
prior to the related payment date. The Issuer shall fix or cause to be fixed any
such special record date and payment date, and, at least 15 days before any such
special record date, the Issuer shall mail to the Trustee and each Noteholder a
notice that states the special record date, the payment date and the amount of
defaulted interest to be paid.

        (d) Promptly following the date on which all principal of and interest
on the Notes has been paid in full and the Notes have been surrendered to the
Trustee, the Trustee shall, if the Insurer has paid any amount in respect of the
Notes under the Note Policy which has not been reimbursed to it, deliver such
surrendered Notes to the Insurer.

        (e) The entire unpaid principal amount of each Class of Notes shall be
due and payable, if not previously paid, on the related Final Scheduled
Distribution Date or on the date on which an Event of Default shall have
occurred and be continuing, so long as an Insurer Default shall not have
occurred and be continuing or, if an Insurer Default shall have occurred and be
continuing, on the date on which an Event of Default shall have occurred and be
continuing and the Trustee or the Holders of Notes representing not less than a
majority of the Outstanding Amount of the Notes, voting together as a single
Class, have declared the Notes to be immediately due and payable in the manner
provided in Section 5.02. Following an acceleration upon an Event of Default,
the Master Servicer shall instruct the Trustee (based on the information
contained in the Distribution Date Statement delivered on the related Master
Servicer Report Date pursuant to Section 4.09 of the Sale and Servicing
Agreement) to make the following distributions of Net Collections for such
Distribution Date, in the following amounts and order of priority:

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

                                       18
<PAGE>
               (ii) to the Swap Counterparty, any unpaid Net Swap Payments,
        including any unpaid Net Swap Payments with respect to one or more Due
        Periods;

               (iii) to the Indenture Trustee, any accrued and unpaid fees and
        expenses payable to the Indenture Trustee and to the Owner Trustee, any
        accrued and unpaid fees and expenses payable to the Owner Trustee, in
        each case to the extent such fees and expenses have not been previously
        paid by the Master Servicer;

               (iv) to the Note Distribution Account, the Note Interest
        Distributable Amount for each Class of Notes, for payment of interest on
        each such Class of Notes, pro rata in proportion to their respective
        Outstanding Amounts;

               (v) to the Note Distribution Account, the Outstanding Amount of
        the Class A-1 Notes, for payment of principal to the Holders of the
        Class A-1 Notes, until the Outstanding Amount of the Class A-1 Notes has
        been reduced to zero;

               (vi) to the Note Distribution Account, the Outstanding Amount of
        the Class A-2 Notes, for payment of principal to the Holders of the
        Class A-2 Notes, until the Outstanding Amount of the Class A-2 Notes has
        been reduced to zero;

               (vii) to the Note Distribution Account, the Outstanding Amount of
        the Class A-3A Notes and the Class A-3B Notes, for payment of principal
        to the Holders of the Class A-3A Notes and the Class A-3B Notes, pro
        rata based on their respective Outstanding Amounts, until the
        Outstanding Amount of each of the Class A-3A Notes and the Class A-3B
        Notes has been reduced to zero;

               (viii) to the Note Distribution Account, the Outstanding Amount
        of the Class A-4A Notes and the Class A-4B Notes, for payment of
        principal to the Holders of the Class A-4A Notes and the Class A-4B
        Notes, pro rata based on their respective Outstanding Amounts, until the
        Outstanding Amount of each of the Class A-4A Notes and the Class A-4B
        Notes has been reduced to zero;

               (ix) to the Swap Counterparty, any Swap Termination Payments not
        paid to it pursuant to clause (ii) above;

               (x) amounts due and owing and required to be distributed to the
        Insurer pursuant to clause (vi) of Section 5.05(a) of the Sale and
        Servicing Agreement and not previously distributed; and

               (xi) any excess amounts remaining after making the distributions
        described in clauses (i) through (x) above shall be distributed first,
        to WFSRC until WFSRC has received full repayment of its Spread Account
        Initial Deposit, and second, to the Owner Trustee for distribution to
        the Certificateholders in accordance with the Trust Agreement.

        Section 2.08. Cancellation. Subject to Section 2.07(d), all Notes
surrendered for payment, registration of transfer, exchange or redemption shall,
if surrendered to any Person other than the Trustee, be delivered to the Trustee
and shall be promptly cancelled by the Trustee. Subject to Section 2.07(d), the
Issuer may at any time deliver to the Trustee for

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<PAGE>
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 cancelled by the Trustee. No Notes shall be
authenticated in lieu of or in exchange for any Notes cancelled as provided in
this Section, except as expressly permitted by this Indenture. Subject to
Section 2.07(d), all cancelled Notes may be held or disposed of by the 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 Trustee.

        Section 2.09. Book-Entry Notes. The Notes, upon original issuance, will
be issued in the form of a typewritten Note or Notes representing the Book-Entry
Notes, to be delivered to DTC, the initial Clearing Agency, by, or on behalf of,
the Issuer. Such Notes shall initially be registered on the Note Register in the
name of Cede & Co., the nominee of the initial Clearing Agency, and no Note
Owner will receive a Definitive Note representing such Note Owner's interest in
such Note, except as provided in Section 2.11. Unless and until definitive,
fully registered Notes (the "Definitive Notes") have been issued to Note Owners
pursuant to Section 2.11:

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

               (ii) the Note Registrar and the 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 2.11,
        the 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

               (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, 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 Trustee.

        Section 2.10. 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 Note Owners pursuant to Section
2.11, the Trustee shall give all such notices and

                                       20
<PAGE>
communications specified herein to be given to Holders of the Notes to the
Clearing Agency, and shall have no obligation to the Note Owners.

        Section 2.11. Definitive Notes.

        (a) If (i)(A) the Administrator advises the Trustee in writing that the
Clearing Agency is no longer willing or able to properly discharge its
responsibilities as described in the Note Depository Agreement, and (B) Trustee
or the Administrator is unable to locate a qualified successor, (ii) the
Administrator at its option advises the 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, the Note Owners representing not less than a
majority of the Outstanding Amount of a Class of Notes advise the Trustee and
the Clearing Agency through the Clearing Agency Participants in writing that the
continuation of a book-entry system through the Clearing Agency is no longer in
the best interests of the related Note Owners, then the Trustee shall notify all
Note Owners of the related Class of Notes, through the Clearing Agency, of the
occurrence of such event and of the availability of Definitive Notes of the
related Class of Notes to Note Owners requesting the same. Upon surrender to the
Trustee of the Note or Notes representing the Book-Entry Notes by the Clearing
Agency, accompanied by registration instructions, the Issuer shall execute and
the Trustee shall authenticate the Definitive Notes in accordance with the
instructions of the Clearing Agency. None of the Issuer, the Note Registrar or
the 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 of a Class, the Trustee
shall recognize the Holders of the Definitive Notes as Noteholders hereunder.

        The Trustee shall not be liable if the Trustee or the Administrator is
unable to locate a qualified successor Clearing Agency. The Definitive Notes
shall be typewritten, printed, lithographed or engraved or produced by any
combination of these methods (with or without steel engraved borders), all as
determined by the officers executing such Notes, as evidenced by their execution
of such Notes.

        Section 2.12. Release of Collateral. Subject to Section 11.01 and the
other Basic Documents, the 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.

        Section 2.13. Tax Treatment. The Issuer has entered into this Indenture,
and the Notes will be 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 Issuer secured by the Trust Estate. The Issuer, by
entering into this Indenture, and each Noteholder, by its acceptance of its Note
(and each Note Owner by its acceptance of an interest in the applicable
Book-Entry Note), agree to treat the Notes for federal, state and local income,
single business and franchise tax purposes as indebtedness of the Issuer.

                                       21
<PAGE>

                                  ARTICLE THREE

                                    COVENANTS

        Section 3.01. Payment of Principal and Interest. The Issuer will duly
and punctually pay 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, subject to Section 8.02(c), the Issuer will cause to be distributed
all amounts on deposit in the Note Distribution Account in respect of the
related Due Period on a Distribution Date deposited therein pursuant to the Sale
and Servicing Agreement for the benefit of (i) the Class A-1 Notes, to the Class
A-1 Noteholders, (ii) the Class A-2 Notes, to the Class A-2 Noteholders, (iii)
the Class A-3A Notes, to the Class A-3A Noteholders, (iv) the Class A-3B Notes,
to the Class A-3B Noteholders, (v) the Class A-4A Notes, to the Class A-4A
Noteholders and (vi) the Class A-4B Notes, to the Class A-4B Noteholders.
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.

        Section 3.02. Maintenance of Office or Agency. The Chase Manhattan Bank,
as agent for the Issuer, will maintain in The City of New York 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 Trustee
to serve as its agent for the foregoing purposes. The Issuer will give prompt
written notice to the Trustee of the location, and of any change in the
location, of any such office or agency. If at any time the Issuer shall fail to
maintain any such office or agency or shall fail to furnish the 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 Trustee as its
agent to receive all such surrenders, notices and demands.

        Section 3.03. Money for Payments to be Held in Trust. As provided in
Sections 5.06 and 8.02, all payments of amounts due and payable with respect to
any Notes that are to be made from amounts withdrawn from the Collection Account
and the Note Distribution Account pursuant to Section 8.02(b) shall be made on
behalf of the Issuer by the Trustee or by another Paying Agent, and no amounts
so withdrawn from the Collection Account and the Note Distribution Account for
payments of Notes shall be paid over to the Issuer except as provided in this
Section.

        On the Business Day immediately preceding each Distribution Date and
Redemption Date, the Issuer shall deposit or cause to be deposited in the Note
Distribution Account an aggregate sum sufficient to pay the amounts then
becoming due, such sum to be held in trust for the benefit of the Persons
entitled thereto and (unless the Paying Agent is the Trustee) shall promptly
notify the Trustee of its action or failure so to act.

        The Issuer will cause each Paying Agent other than the Trustee to
execute and deliver to the Trustee and the Insurer an instrument in which such
Paying Agent shall agree with the

                                       22
<PAGE>
Trustee (and if the Trustee acts as Paying Agent, it hereby so agrees), subject
to the provisions of this Section, 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 Trustee notice of any default by the Issuer (or any
        other obligor upon the Notes) 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 Trustee, forthwith pay to the Trustee
        all sums so held in trust by such Paying Agent;

               (iv) immediately resign as Paying Agent and forthwith pay to the
        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.

        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 Trustee all sums held in trust by
such Paying Agent, such sums to be held by the Trustee upon the same trusts as
those upon which the sums were held by such Paying Agent; and upon such payment
by any Paying Agent to the Trustee, such Paying Agent shall be released from all
further liability with respect to such money.

        Subject to applicable laws with respect to escheat of funds, any money
held by the Trustee or any Paying Agent in trust for the payment of any amount
due with respect to any Note and remaining unclaimed for two years after such
amount has become due and payable shall be discharged from such trust and upon
receipt of an Issuer Request with the consent of the Insurer (unless an Insurer
Default shall have occurred and be continuing) shall be deposited by the Trustee
in the Collection Account; and the Holder of such Note shall thereafter, as an
unsecured general creditor, look only to the Issuer for payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such trust money
shall thereupon cease; provided, however, that if such money or any portion
thereof had been previously deposited by the Insurer with the Trustee for the
payment of principal or interest on the Notes, to the extent any amounts are
owing to the Insurer, such amounts shall be paid promptly to the Insurer upon
receipt of a written request by the Insurer to such effect, and provided,
further, that the Trustee or such Paying Agent, before being required to make
any such repayment, may at the expense of the Issuer cause to be published once,
in a newspaper published in the English language, customarily published on each
Business Day and of general circulation in The City of New York, notice that

                                       23
<PAGE>
such money remains unclaimed and that, after a date specified therein, which
shall not be less than 30 days from the date of such publication, any unclaimed
balance of such money then remaining will be repaid to or for the account of the
Issuer. The Trustee may also adopt and employ, at the expense of the Issuer, any
other reasonable means of notification of such repayment (including, but not
limited to, mailing notice of such repayment to Holders whose Notes have been
called but have not been surrendered for redemption or whose right to or
interest in monies due and payable but not claimed is determinable from the
records of the Trustee or of any Paying Agent, at the last address of record for
each such Holder).

        Section 3.04. Existence. 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, in
which case the Issuer will keep in full effect its existence, rights 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, the Collateral and each other
instrument or agreement included in the Trust Estate.

        Section 3.05. Protection of Trust Estate. The Issuer intends the
security interest Granted pursuant to this Indenture in favor of the Trustee on
behalf of the Noteholders to be prior to all other liens in respect of the Trust
Estate, and the Issuer shall take all actions necessary to obtain and maintain,
for the benefit of the Trustee on behalf of the Noteholders, a first lien on and
a first priority, perfected security interest in the Trust Estate, subject to
the rights of the Insurer under the Insurance Agreement. 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, all as prepared by the Master Servicer and
delivered to the Issuer, and will take such other action necessary or advisable
to:

               (i) Grant more effectively all or any portion of the Trust
        Estate;

               (ii) maintain or preserve the lien and security interest (and the
        priority thereof) created by 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 of the Collateral;

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

               (vi) pay all taxes or assessments levied or assessed upon the
        Trust Estate when due.

        The Issuer hereby designates the Trustee its agent and attorney-in-fact
to execute all financing statements, continuation statements or other
instruments required to be executed pursuant to this Section.

                                       24
<PAGE>
        Section 3.06. Opinions as to Trust Estate.

        (a) Promptly after the execution and delivery of this Indenture, the
Issuer shall furnish to the Trustee and the Insurer an Opinion of Counsel to the
effect that, in the opinion of such counsel, either (i) all financing statements
and continuation statements have been executed and filed that are necessary to
create and continue the Trustee's first priority perfected security interest in
the collateral (subject to the rights of the Insurer under the Insurance
Agreement) for the benefit of the Noteholders, and reciting the details of such
filings or referring to prior Opinions of Counsel in which such details are
given, or (ii) no such action shall be necessary to perfect such security
interest.

        (b) Within 90 days after the beginning of each calendar year beginning
with the first calendar year beginning more than three months after the Cut-Off
Date, the Issuer shall furnish to the Trustee and the Insurer an Opinion of
Counsel, dated as of a date during such 90-day period, to the effect that, in
the opinion of such counsel, either (i) all financing statements and
continuation statements have been executed and filed that are necessary to
create and continue the Trustee's first priority perfected security interest in
the collateral (subject to the rights of the Insurer under the Insurance
Agreement) for the benefit of the Noteholders, and reciting the details of such
filings or referring to prior Opinions of Counsel in which such details are
given, or (ii) no such action shall be necessary to perfect such security
interest.

        Section 3.07. Performance of Obligations; Servicing of Contracts.

        (a) The Issuer will not take any action and will use its best efforts
not to permit any action to be taken by others, including the Servicer, 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 the Basic Documents or such other
instrument or agreement.

        (b) The Issuer may contract with other Persons acceptable to the Insurer
(so long as no Insurer Default shall have occurred and be continuing) to assist
it in performing its duties and obligations under this Indenture, and any
performance of such duties by a Person identified to the Trustee and the Insurer
in an Officer's Certificate shall be deemed to be action taken by the Issuer.
The Trustee shall not be responsible for the action or inaction of the Master
Servicer or the Administrator. Initially, the Issuer has contracted with the
Master Servicer and the Administrator to assist the Issuer in performing its
duties under this Indenture.

        (c) The Issuer will, and will cause the Administrator to, punctually
perform and observe all of the obligations and agreements of the Issuer and the
Administrator contained in this Indenture, the other Basic Documents and in the
instruments and agreements included in the Trust Estate, including but not
limited to filing or causing to be filed all UCC financing statements and
continuation statements required to be filed by the terms of this Indenture and
the other Basic Documents in accordance with and within the time periods
provided for herein and therein. Except as otherwise expressly provided therein,
the Issuer shall not waive, amend, modify, supplement or terminate any Basic
Document or any provision thereof without the

                                       25
<PAGE>
consent of the Trustee or the Holders of at least a majority of the Outstanding
Amount or such greater percentage as may be specified in the particular
provision.

        (d) If the Issuer shall have knowledge of the occurrence of a Servicer
Default, the Issuer shall promptly notify the Trustee, the Insurer and each
Rating Agency thereof, and shall specify in such notice the action, if any, the
Issuer is taking with respect of such default. If a Servicer Default 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
Contracts, the Issuer shall take all reasonable steps available to it to remedy
such failure.

        (e) If an Insurer Default shall have occurred and be continuing and if
the Issuer has given notice of termination to the Master Servicer of the Master
Servicer's rights and powers pursuant to Section 8.02 of the Sale and Servicing
Agreement, as promptly as possible thereafter, the Issuer shall (subject to the
right of the Trustee to direct such appointment pursuant to Section 8.02 of the
Sale and Servicing Agreement) appoint a successor servicer (the "Successor
Master Servicer"), and such Successor Master Servicer shall accept its
appointment by a written assumption in a form acceptable to the Trustee. In the
event that a Successor Master Servicer has not been appointed and accepted its
appointment at the time when the Master Servicer ceases to act as Master
Servicer, the Trustee without further action shall automatically be appointed
the Successor Master Servicer. The Trustee may resign as the Successor Master
Servicer by giving written notice of such resignation to the Issuer and in such
event will be released from such duties and obligations, such release not to be
effective until the date a new servicer enters into a servicing agreement with
the Issuer as provided below. Upon delivery of any such notice to the Issuer,
the Issuer shall obtain a new servicer as the Successor Master Servicer under
the Sale and Servicing Agreement. Any Successor Master Servicer other than the
Trustee shall (i) be an established financial institution having a net worth of
not less than $50,000,000 and whose regular business includes the servicing of
motor vehicle receivables and (ii) enter into a servicing agreement with the
Issuer having substantially the same provisions as the provisions of the Sale
and Servicing Agreement applicable to the Master Servicer. If within 30 days
after the delivery of the notice referred to above, the Issuer shall not have
obtained such a new Master Servicer, the Trustee may appoint, or may petition a
court of competent jurisdiction to appoint, a Successor Master Servicer. In
connection with any such appointment, the Trustee may make such arrangements for
the compensation of such successor as it and such successor shall agree, subject
to the limitations set forth below and in the Sale and Servicing Agreement, and
in accordance with Section 8.02 of the Sale and Servicing Agreement, the Issuer
shall enter into an agreement with such successor for the servicing of the
Contracts (such agreement to be in form and substance satisfactory to the
Trustee). If the Trustee shall succeed to the Master Servicer's duties as
servicer of the Contracts as provided herein, it shall do so in its individual
capacity and not in its capacity as Trustee and, accordingly, the provisions of
Article Six shall be inapplicable to the Trustee in its duties as the successor
to the Master Servicer and the servicing of the Contracts. In case the Trustee
shall become successor to the Master Servicer under the Sale and Servicing
Agreement, the Trustee shall be entitled to appoint as Master Servicer 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) Upon any termination of the Master Servicer's rights and powers
pursuant to the Sale and Servicing Agreement, the Issuer shall promptly notify
the Trustee. As soon as a

                                       26
<PAGE>
successor Master Servicer is appointed, the Issuer shall notify the Trustee of
such appointment, specifying in such notice the name and address of such
successor Master Servicer.

        (g) The Issuer agrees that it will not waive timely performance or
observance by the Master Servicer or the Seller of their respective duties under
the Basic Documents: (i) without the prior consent of the Insurer (unless an
Insurer Default shall have occurred and be continuing or the Policy Expiration
Date has occurred) or (ii) if the effect thereof would adversely affect the
Holders of the Notes.

        Section 3.08. Negative Covenants. Until the Termination Date, the Issuer
shall not:

               (i) except as expressly permitted by the Basic Documents, 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 Controlling Party;

               (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
        applicable state law) or assert any claim against any present or former
        Noteholder by reason of the payment of the taxes levied or assessed upon
        any part of the Trust Estate;

               (iii) (A) permit the validity or effectiveness of this Indenture
        to be impaired, or permit the lien created by 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 or
        the lien in favor of the Insurer created by the Insurance Agreement) 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 the lien of this Indenture, the lien in favor of the
        Insurer created by the Insurance Agreement or tax liens, mechanics'
        liens and other liens that arise by operation of law, in each case on a
        Financed Vehicle and arising solely as a result of an action or omission
        of the related Obligor), (C) permit the lien created by 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, or (D) amend, modify or fail to comply with the provisions of
        the Basic Documents without the prior written consent of the Controlling
        Party, except where the Basic Documents allow for amendment or
        modification without the consent or approval of the Controlling Party;
        or

               (iv) dissolve or liquidate in whole or in part.

        Section 3.09. Annual Statement as to Compliance. The Issuer will deliver
to the Trustee and the Insurer, on or before 120 days after the end of each
fiscal year of the Issuer (commencing with the fiscal year ended December 31,
2002) an Officer's Certificate stating, as to the Authorized Officer signing
such Officer's Certificate, that:

                                       27
<PAGE>
        (a) a review of the activities of the Issuer during such year (or
shorter period, with respect to the first such Officer's Certificate) and of
performance under this Indenture has been made under such Authorized Officer's
supervision; and

        (b) 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 shorter period, with respect to the first
such Officer's Certificate), or, if there has been a default in the compliance
of any such condition or covenant, specifying each such default known to such
Authorized Officer and the nature and status thereof.

        Section 3.10. Issuer May Consolidate, etc. Only on Certain Terms.

        (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 or any State and shall expressly
        assume, by an indenture supplemental hereto, executed and delivered to
        the Trustee, in form and substance satisfactory to the Trustee and the
        Insurer (so long as no Insurer Default shall have occurred and be
        continuing), 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 and each other Basic Document
        on the part of the Issuer to be performed or observed, all as provided
        herein;

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

               (iii) the Rating Agency Condition shall have been satisfied with
        respect to such consolidation or merger;

               (iv) the Issuer shall have received an Opinion of Counsel which
        shall be delivered to and shall be satisfactory to the Trustee and the
        Insurer (so long as no Insurer Default shall have occurred and be
        continuing) to the effect that such consolidation or merger will not
        have any material adverse tax consequence to the Issuer, the Insurer,
        any Noteholder or any Certificateholder;

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

               (vi) the Issuer shall have delivered to the Trustee an Officer's
        Certificate and an Opinion of Counsel (which shall describe the actions
        taken as required by clause (v) above or that no such actions will be
        taken) each stating that such consolidation or merger and such
        supplemental indenture comply with this Article Three and that all
        conditions precedent herein provided for relating to such transaction
        have been compiled with (including any filings required by the Exchange
        Act); and

               (vii) so long as no Insurer Default shall have occurred and be
        continuing, the Issuer shall have given the Insurer written notice of
        such consolidation or merger at least

                                       28
<PAGE>
        20 Business Days prior to the consummation of such action and shall have
        received the prior written approval of the Insurer of such consolidation
        or merger and the Issuer or the Person (if other than the Issuer) formed
        by or surviving such consolidation or merger has a net worth,
        immediately after such consolidation or merger, that is (A) greater than
        zero and (B) not less than the net worth of the Issuer immediately prior
        to giving effect to such consolidation or merger.

        (b) The Issuer shall not convey or transfer all or substantially all of
its properties or assets, including those included in the Trust Estate, to any
Person (except as expressly permitted by the Basic Documents), unless:

               (i) the Person that acquires by conveyance or transfer the
        properties and assets of the Issuer shall (A) be a United States citizen
        or a Person organized and existing under the laws of the United States
        or any State, (B) expressly assume, by an indenture supplemental hereto,
        executed and delivered to the Trustee, in form and substance
        satisfactory to the Trustee and the Insurer (so long as no Insurer
        Default shall have occurred and be continuing), 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 and each other Basic Document on the part of the Issuer to be
        performed or observed, all as provided herein, (C) expressly agree 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 agree 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 agree 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 conveyance or
        transference, no Default or Event of Default shall have occurred and be
        continuing;

               (iii) the Rating Agency Condition shall have been satisfied with
        respect to such conveyance or transference;

               (iv) the Issuer shall have received an Opinion of Counsel which
        shall be delivered to and shall be satisfactory to the Trustee and the
        Insurer (so long as no Insurer Default shall have occurred and be
        continuing) to the effect that such conveyance or transference will not
        have any material adverse tax consequence to the Issuer, the Insurer,
        any Noteholder or any Certificateholder;

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

               (vi) the Issuer shall have delivered to the Trustee an Officer's
        Certificate and an Opinion of Counsel (which shall describe the actions
        taken as required by clause (v) above or that no such actions will be
        taken) each stating that such conveyance or trans-

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<PAGE>
        ference and such supplemental indenture comply with this Article Three
        and that all conditions precedent herein provided for relating to such
        transaction have been complied with (including any filings required by
        the Exchange Act); and

               (vii) so long as no Insurer Default shall have occurred and be
        continuing, the Issuer shall have given the Insurer written notice of
        such conveyance or transfer of properties or assets at least 20 Business
        Days prior to the consummation of such action and shall have received
        the prior written approval of the Insurer of such conveyance or transfer
        and the Person acquiring by conveyance or transference the properties or
        assets of the Issuer has a net worth, immediately after such conveyance
        or transfer, that is (A) greater than zero and (B) not less than the net
        worth of the Issuer immediately prior to giving effect to such
        conveyance or transfer.

        Section 3.11. Successor or Transferee.

        (a) Upon any consolidation or merger of the Issuer in accordance with
Section 3.10(a), 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 or substantially all the assets
or properties of the Issuer pursuant to Section 3.10(b), the Issuer will be
released from every covenant and agreement 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 Trustee stating that the Issuer is to be
so released.

        Section 3.12. No Other Business. The Issuer shall not engage in any
business other than financing, purchasing, owning, selling and managing the
Contracts in the manner contemplated by this Indenture and the other Basic
Documents and activities incidental thereto.

        Section 3.13. No Borrowing. The Issuer shall not issue, incur, assume,
guarantee or otherwise become liable, directly or indirectly, for any
Indebtedness except for (i) the Notes, (ii) obligations or Indebtedness owing
from time to time to the Insurer under the Insurance Agreement and (iii) any
other Indebtedness permitted by or arising under the other Basic Documents. The
proceeds of the Notes shall be used exclusively to fund the Issuer's purchase of
the Contracts and the other assets specified in the Sale and Servicing
Agreement, to fund the Spread Account and to pay the transactional expenses of
the Issuer.

        Section 3.14. Master Servicer's Obligations. The Issuer shall cause the
Master Servicer to comply with the Sale and Servicing Agreement, including
Section 5.07 and Articles Four and Seven thereof.

        Section 3.15. Guarantees, Loans, Advances and Other Liabilities. Except
as otherwise contemplated by the Basic 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 assuming 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)

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<PAGE>
any stock, obligations, assets or securities of, any other interest in, or make
any capital contribution to, any other Person.

        Section 3.16. 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 3.17. Restricted Payments. Except as expressly permitted by the
Basic Documents, 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 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, (A) distributions to the Master
Servicer, the Owner Trustee and the Certificateholders as contemplated by, and
to the extent funds are available for such purpose under, the Sale and Servicing
Agreement or the Trust Agreement and (B) payments to the Trustee and the Owner
Trustee pursuant to Section 1(a)(ii) of the Administration Agreement. The Issuer
will not, directly or indirectly, make payments to or distributions from the
Collection Account except in accordance with this Indenture and the other Basic
Documents.

        Section 3.18. Notice of Events of Default. The Issuer agrees to give the
Trustee, the Insurer and each Rating Agency prompt written notice of each Event
of Default hereunder and each default on the part of the Master Servicer or the
Seller of their respective obligations under the Sale and Servicing Agreement.

        Section 3.19. Further Instruments and Acts. Upon request of the Trustee
or the Insurer, 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 3.20. Compliance with Laws. The Issuer shall comply with the
requirements of all applicable laws, the non-compliance with which would,
individually or in the aggregate, materially and adversely affect the ability of
the Issuer to perform its obligations under the Notes, this Indenture or any
other Basic Document.

        Section 3.21. Amendments of Sale and Servicing Agreement and Trust
Agreement. The Issuer shall not agree to any amendment to Section 10.01 of the
Sale and Servicing Agreement or Section 11.01 of the Trust Agreement to
eliminate the requirements thereunder that the Trustee or the Holders of the
Notes consent to amendments thereto as provided therein.

        Section 3.22. Removal of Administrator. If an Insurer Default shall have
occurred and be continuing, so long as any Notes are issued and Outstanding, the
Issuer shall not remove the Administrator without cause unless the Rating Agency
Condition shall have been satisfied in connection with such removal.

                                       31
<PAGE>

                                  ARTICLE FOUR

                           SATISFACTION AND DISCHARGE

        Section 4.01. Satisfaction and Discharge of Indenture. 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 3.03, 3.04, 3.05, 3.07,
3.08, 3.10, 3.12, 3.13, 3.20 and 3.21, (v) the rights, obligations and
immunities of the Trustee hereunder (including the rights of the Trustee under
Section 6.07 and the obligations of the Trustee under Section 4.02), (vi) the
rights of Noteholders as beneficiaries hereof with respect to the property so
deposited with the Trustee payable to all or any of them and (vii) the
obligation of the Trustee to make claims under the Note Policy, which shall
survive the Class A-4 Final Scheduled Distribution Date and extend through any
preference period applicable with respect to the Notes or any payments made in
respect of the Notes, and the 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

               (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 2.05
               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 3.03) have been delivered to the
               Trustee for cancellation and the Note Policy has expired and been
               returned to the Insurer for cancellation; or

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

                             (i) have become due and payable,

                             (ii) will become due and payable at the Class A-4
                      Final Scheduled Distribution Date within one year or

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

               and the Issuer, in the case of clauses (i), (ii) or (iii) above,
               has irrevocably deposited or caused to be irrevocably deposited
               with the Trustee cash or direct obligations of or obligations
               guaranteed by the United States (which will mature prior to the
               date such amounts are payable), in trust in an Eligible Account
               for such purpose, in an amount sufficient to pay and discharge
               the entire indebtedness on such Notes not theretofore delivered
               to the Trustee for cancellation when due to the related Final
               Scheduled Distribution Date or Redemption Date (if Notes

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<PAGE>
               shall have been called for redemption pursuant to Section
               10.01(a)), as the case may be;

               (B) the Issuer has paid or performed or caused to be paid or
        performed all amounts and obligations which the Issuer may owe to or on
        behalf of (1) the Trustee for the benefit of the Noteholders under this
        Indenture or the Notes and (2) the Insurer under this Indenture and the
        other Basic Documents; and

               (C) the Issuer has delivered to the Trustee and the Insurer an
        Officer's Certificate, an Opinion of Counsel and (if required by the
        TIA, the Trustee and the Insurer) an Independent Certificate from a firm
        of certified public accountants, each meeting the applicable
        requirements of Section 11.01(a) and, subject to Section 11.02, each
        stating that all conditions precedent herein provided for relating to
        the satisfaction and discharge of this Indenture have been complied with
        (and, in the case of the foregoing Officer's Certificate, stating that
        the Rating Agency Condition has been satisfied).

        Section 4.02. Application of Trust Money. All monies deposited with the
Trustee pursuant to Section 4.01 shall be held in trust and applied by it, in
accordance with the provisions of the Notes and this Indenture, to the payment,
either directly or through any Paying Agent, as the Trustee may determine, to
the Holders of the particular Notes for the payment or redemption of which such
monies have been deposited with the Trustee, of all sums due and to become due
thereon for principal and interest and all other amounts due under this
Indenture and the Basic Documents; but such monies 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 4.03. Repayment of Monies Held by Paying Agent. In connection
with the satisfaction and discharge of this Indenture with respect to the Notes,
all monies then held by any Paying Agent other than the Trustee under the
provisions of this Indenture with respect to such Notes shall, upon demand of
the Issuer, be paid to the Trustee to be held and applied according to Section
3.03 and thereupon such Paying Agent shall be released from all further
liability with respect to such monies.

                                       33
<PAGE>

                                  ARTICLE FIVE

                                    REMEDIES

        Section 5.01. Events of Default. "Event of Default", wherever used
herein, means 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):

               (i) default by the Issuer in the payment of any interest on any
        Note when the same becomes due and payable, and such default shall
        continue for a period of five days, without taking into account the
        effect of any payment under the Note Policy;

               (ii) default by the Issuer in the payment of the principal of or
        any installment of the principal of any Note when the same becomes due
        and payable, without taking into account the effect of any payment under
        the Note Policy;

               (iii) 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 specifically dealt with), or any
        representation or warranty of the Issuer made in this Indenture, any
        other Basic Document or in any certificate or other writing delivered
        pursuant hereto or in connection herewith proves to have been incorrect
        in any material respect as of the time when the same shall have been
        made, 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 30 days after there shall have been given, by
        registered or certified mail, to the Issuer and the Trustee by the
        Insurer (so long as an Insurer Default shall not have occurred and be
        continuing) or, if an Insurer Default shall have occurred and be
        continuing, to the Issuer by the Trustee or to the Issuer and the
        Trustee by the Holders of at least 25% of the Outstanding Amount of the
        Notes, voting together as a single Class, 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;

               (iv) 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

               (v) 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

                                       34
<PAGE>
        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 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 action by the Issuer in furtherance of any of the
        foregoing.

        The Issuer shall deliver to the Trustee and the Insurer, within five
days after obtaining knowledge of 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 (iii) above,
its status and what action the Issuer is taking or proposes to take with respect
thereto.

        Section 5.02. Rights upon Event of Default.

        (a) So long as no Insurer Default has occurred and is continuing, if an
Event of Default shall have occurred and be continuing, then with the consent of
the Insurer, the Notes shall become immediately due and payable at par, together
with accrued interest thereon. The Trustee will have no discretion with respect
to the acceleration of the Notes under the foregoing circumstances. In the event
of any such acceleration of the Notes, the Trustee shall continue to be entitled
to make claims under the Note Policy pursuant to Section 5.18 for Scheduled
Payments on the Notes. Payments under the Note Policy following acceleration of
the Notes shall be applied by the Trustee:

               (i) to Noteholders for amounts due and unpaid on the Notes for
        interest, ratably, without preference or priority of any kind, according
        to the amounts due and payable on the Notes for interest;

               (ii) to Holders of the Class A-1 Notes for amounts due and unpaid
        on the Class A-1 Notes for principal, ratably, without preference or
        priority of any kind, until the Outstanding Amount of the Class A-1
        Notes is reduced to zero;

               (iii) to Holders of the Class A-2 Notes for amounts due and
        unpaid on the Class A-2 Notes for principal, ratably, without preference
        or priority of any kind, until the Outstanding Amount of the Class A-2
        Notes is reduced to zero;

               (iv) to Holders of the Class A-3A Notes and Class A-3B Notes for
        amounts due and unpaid on the Class A-3A Notes and Class A-3B Notes for
        principal, ratably, without preference or priority of any kind,
        according to the amounts due and payable on the Class A-3A Notes and
        Class A-3B Notes for principal, until the Outstanding Amount of each of
        the Class A-3A Notes and Class 3B Notes reduced to zero;

               (v) to Holders of the Class A-4A Notes and Class A-4B Notes for
        amounts due and unpaid on the Class A-4A Notes and Class A-4B Notes for
        principal, ratably, without preference or priority of any kind,
        according to the amounts due and payable on the Class A-4A Notes and
        Class A-4B Notes for principal, until the Outstanding Amount of each of
        the Class A-4A Notes and Class A-4B Notes is reduced to zero.

                                       35
<PAGE>
        (b) So long as no Insurer Default has occurred and is continuing, in the
event the Notes are accelerated due to an Event of Default, the Insurer shall
have the right (in addition to its obligation to pay Scheduled Payments on the
Notes in accordance with the Note Policy), but not the obligation, to elect:

               (i) to cause the Trustee or the Master Servicer, subject to
        Section 5.04, to sell or liquidate the Trust Estate, in whole or in
        part, on any date or dates following such acceleration as the Insurer,
        in its sole discretion, shall elect; or

               (ii) to pay Scheduled Payments on the Notes in accordance with
        the Note Policy.

        (c) If an Insurer Default shall have occurred and be continuing and an
Event of Default shall have occurred and be continuing, the Trustee may, or if
so requested in writing by Holders of Notes representing at least 66 2/3% of the
aggregate Outstanding Amount, voting together as a single Class, upon prior
written notice to each Rating Agency, shall declare by written notice to the
Issuer that the Notes become, whereupon they shall become, immediately due and
payable at par, together with accrued interest thereon. Notwithstanding anything
to the contrary in this paragraph (c), if an Event of Default specified in
Section 5.01(iv) or (v) shall occur and be continuing when an Insurer Default
has occurred and is continuing, the Notes shall become immediately due and
payable at par, together with accrued interest thereon.

        Section 5.03. Collection of Indebtedness and Suits for Enforcement by
Trustee; Authority of Controlling Party.

        (a) The Issuer covenants that if the Notes are accelerated following the
occurrence of an Event of Default, the Issuer will, upon demand of the Trustee,
pay to it, 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 applicable
Interest Rate 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 Trustee and its agents
and counsel.

        (b) Each of the Trustee and the Insurer hereby irrevocably and
unconditionally appoints the Controlling Party as the true and lawful
attorney-in-fact of such Person for so long as such Person is not the
Controlling Party, with full power of substitution, to execute, acknowledge and
deliver any notice, document, certificate, paper, pleading or instrument and to
do in the name of the Controlling Party as well as in the name, place and stead
of such Person such acts, things and deeds for or on behalf of and in the name
of such Person under this Indenture (including specifically under Section 5.04)
and under the other Basic Documents which such Person could or might do or which
may be necessary, desirable or convenient in such Controlling Party's sole
discretion to effect the purposes contemplated hereunder and under the other
Basic Documents and, without limitation, following the occurrence of an Event of
Default, exercise full right, power and authority to take, or defer from taking,
any and all acts with respect to the administration, maintenance or disposition
of the Trust Estate.

                                       36
<PAGE>
        (c) If an Event of Default occurs and is continuing, the Trustee may in
its discretion but with the consent of the Controlling Party (except as provided
in Section 5.03(d)), proceed to protect and enforce the rights of the
Noteholders, by such appropriate Proceedings as the 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 Trustee by this Indenture or by law.

        (d) Notwithstanding anything to the contrary contained in this Indenture
and regardless of whether an Insurer Default shall have occurred and be
continuing, if the Issuer fails to perform its obligations under Section
10.01(b) when and as due, the Trustee may in its discretion (and without the
consent of the Controlling Party) proceed to protect and enforce its rights and
the rights of the Noteholders by such appropriate proceedings as the Trustee
shall deem most effective to protect and enforce any such rights, whether for
specific performance of any covenant or agreement in this Indenture or in aid of
the exercise of any power granted herein, or to enforce any other remedy or
legal or equitable right vested in the Trustee by this Indenture or by law;
provided that the Trustee shall only be entitled to take any such actions
without the consent of the Controlling Party to the extent such actions (i) are
taken only to enforce the Issuer's obligations to redeem the principal amount of
Notes and (ii) are taken only against the portion of the Collateral, if any,
consisting of the Spread Account, any investments therein and any proceeds
thereof.

        (e) 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 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 Trustee shall have made any demand
pursuant to the provisions of this Section, 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 Trustee (including any claim for
        reasonable compensation to the Trustee and each predecessor Trustee, and
        their respective agents, attorneys and counsel, and for reimbursement of
        all expenses and liabilities incurred, and all advances made, by the
        Trustee and each predecessor 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;

                                       37
<PAGE>
               (iii) to collect and receive any monies or other property payable
        or deliverable on any such claims and to distribute all amounts received
        with respect to the claims of the Noteholders and of the 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
        Trustee or the Holders of Notes allowed in any 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
        Trustee, and, in the event that the Trustee shall consent to the making
        of payments directly to such Noteholders, to pay to the Trustee such
        amounts as shall be sufficient to cover reasonable compensation to the
        Trustee, each predecessor Trustee and their respective agents, attorneys
        and counsel, and all other expenses and liabilities incurred, and all
        advances made, by the Trustee and each predecessor Trustee except as a
        result of negligence or bad faith.

        (f) Nothing herein contained shall be deemed to authorize the 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
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.

        (g) All rights of action and of asserting claims under this Indenture or
under any of the Notes, may be enforced by the 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 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 Trustee, each predecessor Trustee and their respective
agents and attorneys, shall be for the ratable benefit of the Holders of the
Notes.

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

        Section 5.04. Remedies. If an Event of Default shall have occurred and
be continuing the Controlling Party may (subject to Sections 5.02 and 5.05):

               (i) institute Proceedings in its own name and as or on behalf of
        a trustee of an express trust for the collection of all amounts then
        payable on the 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 amounts
        then payable and adjudged due;

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

                                       38
<PAGE>
               (iii) exercise any remedies of a secured party under the UCC and
        any other remedy available to the Trustee and take any other appropriate
        action to protect and enforce the rights and remedies of the Trustee on
        behalf of the Noteholders under this Indenture or the Notes; and

               (iv) direct the Trustee or the Master Servicer to sell or
        otherwise liquidate the Trust Estate or any portion thereof or rights or
        interests therein, at one or more public or private sales called and
        conducted in any manner permitted by law and deliver the proceeds of
        such sale or liquidation to the Trustee for distribution in accordance
        with the terms of this Indenture; provided, however, that, except as
        otherwise provided in the immediately succeeding sentence, no such sale
        or liquidation can be made if the proceeds of such sale or liquidation
        distributable to the Noteholders are not sufficient to pay all
        outstanding principal of and accrued interest on the Notes.

        Notwithstanding the foregoing, the proceeds of such sale or liquidation
need not be sufficient to pay all outstanding principal of and accrued interest
on the Notes if (A) the Insurer is the Controlling Party and the related Event
of Default arose as described in clause (i), (ii), (iv) or (v) of Section 5.01
or (B) the Trustee is the Controlling Party and the related Event of Default
arose as described in clause (i), (ii), (iv) or (v) of Section 5.01 and (1) the
Holders of 100% of the Outstanding Amount of the Notes, voting together as a
single class, consent to such sale or liquidation or (2) the 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, the Trustee provides prior
written notice of such sale or liquidation to each Rating Agency and Holders of
66 2/3% of the Outstanding Amount of the Notes, voting together as a single
class, consent to such sale or liquidation. In determining such sufficiency or
insufficiency of (i) the proceeds of such sale or liquidation to pay all
outstanding principal of and accrued interest on the Notes or (ii) the Trust
Estate 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, the 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.

        Section 5.05. Optional Preservation of the Contracts. If the Trustee is
the Controlling Party and if the Notes have been declared to be due and payable
under Section 5.02 following an Event of Default and such declaration and its
consequences have not been rescinded and annulled, the Trustee may, but need
not, 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, and the Trustee shall
take such desire into account when determining whether or not to maintain
possession of the Trust Estate. In determining whether to maintain possession of
the Trust Estate, the 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.

                                       39
<PAGE>
        Section 5.06. Priorities.

        (a) If the Trustee collects any money or property pursuant to this
Article (excluding any payments made under the Note Policy), it shall pay out
the money or property in the following order and priority:

               (i) amounts due and owing and required to be distributed to the
        Master Servicer, the Swap Counterparty in respect of Net Swap Receipts,
        the Owner Trustee and the Trustee, respectively, pursuant to clauses
        (i), (ii) and (iii) of Section 5.05(a) of the Sale and Servicing
        Agreement and not previously distributed, in the order of such
        priorities and without preference or priority of any kind within such
        priorities;

               (ii) to each Class of Noteholders, accrued and unpaid interest on
        the outstanding principal amount of the related Class of Notes at the
        related Interest Rate, together with, to the extent permitted by
        applicable law, interest at the related Interest Rate on any interest
        accrued but not timely paid;

               (iii) to Holders of the Class A-1 Notes for amounts due and
        unpaid on the Class A-1 Notes for principal, ratably, without preference
        or priority of any kind, according to the amounts due and payable on the
        Class A-1 Notes for principal, until the Outstanding Amount of the Class
        A-1 Notes is reduced to zero;

               (iv) to Holders of each other Class of Notes for amounts due and
        unpaid on such Class of Notes for principal, ratably, without preference
        or priority of any kind, according to the amounts due and payable on
        such Class of Notes for principal, until the Outstanding Amount of each
        such Class of Notes is reduced to zero;

               (v) amounts due and owing and required to be distributed to the
        Insurer pursuant to clause (vi) of Section 5.05(a) of the Sale and
        Servicing Agreement and not previously distributed; and

               (vi) any excess amounts remaining after making the distributions
        described in clauses (i) through (v) above shall be distributed in the
        following order of priority: into the Spread Account until the amounts
        deposited therein equal the Specified Spread Account Balance, with any
        excess being distributed, first, to the Insurer, to the extent of any
        Unreimbursed Insurer Amounts, second, to WFSRC until WFSRC has received
        full repayment of its Spread Account Initial Deposit, and third, to the
        Owner Trustee for distribution in accordance with the Trust Agreement.

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

        Section 5.07. 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:

                                       40
<PAGE>
               (i) such Holder has previously given written notice to the
        Trustee of a continuing Event of Default;

               (ii) the Holders of not less than 25% of the Outstanding Amount
        of the Notes, voting together as a single Class, have made written
        request to the Trustee to institute such Proceeding in respect of such
        Event of Default in its own name as Trustee hereunder;

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

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

               (v) no direction inconsistent with such written request has been
        given to the Trustee during such 60-day period by the Holders of a
        majority of the Outstanding Amount of the Notes, voting together as a
        single class; and

               (vi) an Insurer Default shall have occurred and be continuing.

It is understood and intended that no one or more Holders of Notes 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
Holders of Notes 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.

        In the event the Trustee shall receive conflicting or inconsistent
requests and indemnity from two or more groups of Holders of Notes, each
representing less than a majority of the Outstanding Amount of the Notes, voting
together as a single Class, the Trustee in its sole discretion may determine
what action, if any, shall be taken, notwithstanding any other provisions of
this Indenture.

        Section 5.08. 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 on such Note on or after the
respective due dates thereof expressed in such Note or in this Indenture (or, in
the case of redemption, on or after the Redemption Date) and to institute suit
for the enforcement of any such payment, and such right shall not be impaired
without the consent of such Holder; provided, however, that so long as an
Insurer Default shall not have occurred and be continuing, no such suit shall be
instituted.

        Section 5.09. Restoration of Rights and Remedies. If the Controlling
Party 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 Trustee or to
such Noteholder, then and in every such case the Issuer, the 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

                                       41
<PAGE>
remedies of the Trustee and the Noteholders shall continue as though no such
Proceeding had been instituted.

        Section 5.10. Rights and Remedies Cumulative. No right or remedy herein
conferred upon or reserved to the Controlling Party 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 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 5.11. Delay or Omission Not a Waiver. No delay or omission of
the Controlling Party or any Holder of any Note 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 Five or by
law to the Trustee or to the Noteholders may be exercised from time to time, and
as often as may be deemed expedient, by the Trustee or by the Noteholders, as
the case may be.

        Section 5.12. Control by Noteholders. If the Trustee is the Controlling
Party, the Holders of a majority of the Outstanding Amount of the Notes, voting
together as a single Class, shall have the right to direct the time, method and
place of conducting any Proceeding for any remedy available to the Trustee with
respect to the Notes or exercising any trust or power conferred on the Trustee;
provided that:

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

               (ii) subject to the terms of Section 5.04, any direction to the
        Trustee to sell or liquidate the Trust Estate shall be by the Holders of
        Notes representing not less than 100% of the Outstanding Amount of the
        Notes;

               (iii) if the conditions set forth in Section 5.05 have been
        satisfied and the Trustee elects to retain the Trust Estate pursuant to
        such Section, then any direction to the 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

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

Notwithstanding the rights of Noteholders set forth in this Section, subject to
Section 6.01, the Trustee need not take any action that it determines, in its
sole discretion, might involve it in liability or might materially adversely
affect the rights of any Noteholders not consenting to such action.

        Section 5.13. Waiver of Past Defaults. If an Insurer Default shall have
occurred and be continuing, the Holders of Notes of not less than a majority of
the Outstanding Amount of the Notes, voting together as a single Class, may
waive any past Default or Event of Default and its consequences except a Default
(i) in payment of principal of or interest on any of the Notes or

                                       42
<PAGE>
(ii) in respect of a covenant or provision hereof which cannot be modified or
amended without the consent of the Holder of each Note. In the case of any such
waiver, the Issuer, the 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. The Issuer shall notify each Rating Agency of any waiver of a Default
or Event of Default.

        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 5.14. 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 Trustee for any action taken, suffered or omitted by it as 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 (i)
any suit instituted by the Trustee, (ii) 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 (iii) 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 5.15. 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 advantages of any such law, and covenants that it will not
hinder, delay or impede the execution of any power herein granted to the
Trustee, but will suffer and permit the execution of every such power as though
no such law had been enacted.

        Section 5.16. Action on Notes. The 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 Trustee or the Noteholders shall be impaired by the recovery of any judgment
by the 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 Trustee shall be applied in
accordance with Section 5.06.

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<PAGE>
        Section 5.17. Performance and Enforcement of Certain Obligations.

        (a) Promptly following a request from the Trustee to do so and at the
Administrator's expense, the Issuer shall take all such lawful action as the
Trustee may request to compel or secure the performance and observance by the
Seller and the Master Servicer as applicable, of each of their obligations to
the Issuer under or in connection with the Sale and Servicing Agreement in
accordance with the terms thereof, and to exercise any and all rights, remedies,
powers and privileges lawfully available to the Issuer under or in connection
with the Sale and Servicing Agreement to the extent and in the manner directed
by the Trustee, including the transmission of notices of default on the part of
a Seller or the Master Servicer thereunder and the institution of legal or
administrative actions or proceedings to compel or secure performance by such
Seller or the Master Servicer of each of their obligations under the Sale and
Servicing Agreement.

        (b) If the Trustee is the Controlling Party and if an Event of Default
has occurred and is continuing, the Trustee may, and at the direction (which
direction shall be in writing and may include a facsimile) of the Holders of 66
2/3% of the Outstanding Amount of the Notes, voting together as a single Class,
shall exercise all rights, remedies, powers, privileges and claims of the Issuer
against the Seller 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 a Seller or the Master Servicer 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.

        Section 5.18. Claims Under Note Policy.

        (a) In the event that the Trustee has received a Deficiency Notice with
respect to any Distribution Date pursuant to Section 5.02(b) of the Sale and
Servicing Agreement, the Trustee shall furnish to the Insurer no later than
12:00 p.m., New York City time, on the fourth Business Day prior to the related
Distribution Date a completed Notice of Claim in the amount of the shortfall in
amounts so available to pay the Note Interest Distributable Amount and the Note
Principal Distributable Amount with respect to such Distribution Date (the
amount of any such shortfall being hereinafter referred to as the "Note Policy
Claim Amount"). Amounts paid by the Insurer pursuant to a claim submitted under
this Section shall be deposited by the Trustee into the Note Distribution
Account for payment to Noteholders on the related Distribution Date.

        (b) Any notice delivered by the Trustee to the Insurer pursuant to
Section 5.18(a) shall specify the Note Policy Claim Amount claimed under the
Note Policy and shall constitute a "Notice of Claim" under the Note Policy. In
accordance with the provisions of the Note Policy, the Insurer is required to
pay to the Trustee the Note Policy Claim Amount properly claimed thereunder by
12:00 p.m., New York City time, on the later of (i) the fourth Business Day
following receipt of the Notice of Claim and (ii) the applicable Distribution
Date. Any payment made by the Insurer under the Note Policy shall be applied
solely to the payment of the Notes, and for no other purpose.

        (c) The Trustee shall (i) receive as attorney-in-fact of each Noteholder
any Note Policy Claim Amount from the Insurer and (ii) deposit the same in the
Note Distribution

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<PAGE>
Account for distribution to Noteholders as provided in Sections 3.01 or 5.02.
Any and all Note Policy Claim Amounts disbursed by the Trustee from claims made
under the Note Policy shall not be considered payment by the Issuer or from the
Spread Account with respect to such Notes, and shall not discharge the
obligations of the Issuer with respect thereto. The Insurer shall, to the extent
it makes any payment with respect to the Notes, become subrogated to the rights
of the recipients of such payments to the extent of such payments. Subject to
and conditioned upon any payment with respect to the Notes by or on behalf of
the Insurer, the Trustee shall assign to the Insurer all rights to the payment
of interest or principal with respect to the Notes which are then due for
payment to the extent of all payments made by the Insurer and the Insurer may
exercise any option, vote, right, power or the like with respect to the Notes to
the extent that it has made payment pursuant to the Note Policy. To evidence
such subrogation, the Note Registrar shall note the Insurer's rights as subrogee
upon the register of Noteholders upon receipt from the Insurer of proof of
payment by the Insurer of any Note Interest Distributable Amount or Note
Principal Distributable Amount. The foregoing subrogation shall in all cases be
subject to the rights of the Noteholders to receive all Scheduled Payments in
respect of the Notes.

        (d) The Trustee shall keep a complete and accurate record of all funds
deposited by the Insurer into the Note Distribution Account and the allocation
of such funds to payment of interest on and principal paid in respect of any
Note. The Insurer shall have the right to inspect such records at reasonable
times upon one Business Day's prior notice to the Trustee.

        (e) The Trustee shall be entitled to enforce on behalf of the
Noteholders the obligations of the Insurer under the Note Policy.
Notwithstanding any other provision of this Indenture or any other Basic
Document, the Noteholders are not entitled to institute proceedings directly
against the Insurer.

        Section 5.19. Preference Claims.

        (a) In the event that the Trustee has received a certified copy of an
order of the appropriate court that any Note Interest Distributable Amount or
Note Principal Distributable Amount paid on a Note has been avoided in whole or
in part as a preference payment under applicable bankruptcy law, the Trustee
shall so notify the Insurer, shall comply with the provisions of the Note Policy
to obtain payment by the Insurer of such avoided payment, and shall, at the time
it provides notice to the Insurer, notify Holders of the Notes by mail that, in
the event that any Noteholder's payment is so recoverable, such Noteholder will
be entitled to payment pursuant to the Note Policy. The Trustee shall furnish to
the Insurer its records evidencing the payments of principal of and interest on
Notes, if any, which have been made by the Trustee and subsequently recovered
from Noteholders, and the dates on which such payments were made. Pursuant to
the Note Policy, the Insurer will make such payment on behalf of the Noteholder
to the receiver, conservator, debtor-in-possession or trustee in bankruptcy
named in the Order (as such term is defined in the Note Policy) and not to the
Trustee or any Noteholder directly (unless a Noteholder has previously paid such
payment to the receiver, conservator, debtor-in-possession or trustee in
bankruptcy, in which case the Insurer will make such payment to the Trustee for
distribution to such Noteholder upon proof of such payment reasonably
satisfactory to the Insurer).

                                       45
<PAGE>
        (b) To the extent that a Responsible Officer has actual knowledge
thereof, the Trustee shall promptly notify the Insurer of any proceeding or the
institution of any action seeking the avoidance as a preferential transfer under
applicable bankruptcy, insolvency, receivership, rehabilitation or similar law
(a "Preference Claim") of any distribution made with respect to the Notes. Each
Holder, by its purchase of Notes, and the Trustee hereby agree that so long as
an Insurer Default shall not have occurred and be continuing, the Insurer may at
any time during the continuation of any proceeding relating to a Preference
Claim direct all matters relating to such Preference Claim including, without
limitation, (i) the direction of any appeal of any order relating to any
Preference Claim and (ii) the posting of any surety, supersedeas or performance
bond pending any such appeal at the expense of the Insurer, but subject to
reimbursement as provided in the Insurance Agreement. In addition, and without
limitation of the foregoing, as set forth in Section 5.18(c), the Insurer shall
be subrogated to, and each Noteholder and the Trustee hereby delegate and
assign, to the fullest extent permitted by law, the rights of the Trustee and
each Noteholder in the conduct of any proceeding with respect to a Preference
Claim, including, without limitation, all rights of any party to an adversary
proceeding action with respect to any court order issued in connection with any
such Preference Claim. In addition, for so long as the Insurer guarantees
amounts owing on the RIC and has not defaulted in the making of any payment
required to be made by it pursuant to such guaranty, the Insurer shall have the
right to initiate and control a proceeding against the obligor under the RIC but
only to the extent such proceeding relates to the amounts so guaranteed and no
settlement of any other proceeding or claim that would adversely affect the
Insurer's rights to recover such amounts shall be affected without the prior
written consent of the Insurer.

                                       46
<PAGE>

                                   ARTICLE SIX

                                   THE TRUSTEE

        Section 6.01. Duties of Trustee.

        (a) If an Event of Default has occurred and is continuing, the Trustee
shall exercise the rights and powers vested in it by this Indenture and in 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; provided, however, that if the Trustee shall assume the duties of the
Master Servicer pursuant to Section 3.07(e), the Trustee in performing such
duties shall use the degree of care and skill customarily exercised by a prudent
institutional servicer with respect to automobile retail installment sales
contracts that it services for itself or others.

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

               (i) the 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
        Trustee; and

               (ii) in the absence of bad faith on its part, the 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 Trustee and conforming to the requirements of this
        Indenture; however, the Trustee shall examine the certificates and
        opinions to determine whether or not they conform to the requirements of
        this Indenture and the other Basic Documents to which the Trustee is a
        party.

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

               (i) this paragraph does not limit the effect of Section 6.01(b);

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

               (iii) the 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 5.12.

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

        (e) The Trustee shall not be liable for interest on any money received
by it.

                                       47
<PAGE>
        (f) Money held in trust by the Trustee need not be segregated from other
funds except to the extent required by law or the terms of this Indenture or the
Sale and Servicing Agreement.

        (g) No provision of this Indenture shall require the 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 repayments of such
funds or adequate indemnity against such risk or liability is not reasonably
assured to it.

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

        (i) The Trustee shall, upon one Business Day's prior notice to the
Trustee, so long as no Insurer Default shall have occurred and be continuing, at
the expense of the Issuer, and if an Insurer Default shall have occurred and be
continuing, at the expense of the Insurer, permit any representative of the
Insurer, during the Trustee's normal business hours, to examine all books of
account, records, reports and other papers of the Trustee relating to the Notes,
to make copies and extracts therefrom and to discuss the Trustee's affairs and
actions, as such affairs and actions relate to the Trustee's duties with respect
to the Notes, with the Trustee's officers and employees responsible for carrying
out the Trustee's duties with respect to the Notes.

        (j) The Trustee shall, and hereby agrees that it will (i) perform all of
the obligations and duties required of it under the Sale and Servicing Agreement
and (ii) hold the Note Policy in trust, and will hold any proceeds of any claim
on the Note Policy in trust solely for the use and benefit of the Noteholders.

        (k) Except as otherwise required or permitted by the TIA, nothing
contained herein shall be deemed to authorize the Trustee to engage in any
business operations or any activities other than those set forth in this
Indenture. Specifically, the Trustee shall have no authority to engage in any
business operations, acquire any assets other than those specifically included
in the Trust Estate under this Indenture or otherwise vary the assets held by
the Issuer. Similarly, the Trustee shall have no discretionary duties other than
performing those ministerial acts set forth above necessary to accomplish the
purpose of the Issuer as set forth in this Indenture.

        (l) In no event shall the Trustee be liable for any indirect, special,
punitive or consequential loss or damage of any kind whatsoever, including, but
not limited to, lost profits, even if the Trustee has been advised of the
likelihood of such loss or damage and regardless of the form of action.

        (m) In no event shall the Trustee be liable (but the Trustee may be
subject to removal) for any failure or delay in the performance of its
obligations hereunder because of circumstances beyond its control, including
acts of God, flood, war (whether declared or undeclared), terrorism, fire, riot,
embargo, government action, including any laws, ordinances, regulations,
governmental action or the like which delay, restrict or prohibit the providing
of the services contemplated by this Indenture.

                                       48
<PAGE>
        Section 6.02. Rights of Trustee.

        (a) Except as otherwise provided in Section 6.02(g) and the second
succeeding sentence, the Trustee may conclusively rely and shall be protected in
acting upon or refraining from acting upon any resolution, certificate,
statement, instrument, opinion, report, notice, request, consent, order, note,
direction, demand, election or other paper or document believed by it to be
genuine and to have been signed or presented by the proper person. The Trustee
need not investigate any fact or matter stated in the document. Notwithstanding
the foregoing, the Trustee, upon receipt of all resolutions, certificates,
statements, opinions, reports, documents, orders or other instruments furnished
to the Trustee that shall be specifically required to be furnished pursuant to
any provision of this Indenture, shall examine them to determine whether they
comply as to form to the requirements of this Indenture.

        (b) Other than with respect to actions required to be taken by the
Trustee pursuant to Section 5.18 and 5.19, before the Trustee acts or refrains
from acting, it may require an Officer's Certificate (with respect to factual
matters) or an Opinion of Counsel, as applicable. The Trustee shall not be
liable for any action it takes or omits to take in good faith in reliance on the
Officer's Certificate or Opinion of Counsel.

        (c) The 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, and the Trustee shall not be responsible
for any misconduct or negligence on the part of, or for the supervision of, any
such agent, attorney, custodian or nominee appointed with due care by it
hereunder.

        (d) The 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 the Trustee's conduct does not constitute
willful misconduct, negligence or bad faith.

        (e) The Trustee may consult with counsel, and the advice or opinion of
counsel with respect to legal matters relating to this Indenture and the Notes
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 Trustee shall be under no obligation to institute, conduct or
defend any litigation under this Indenture or in relation to this Indenture, at
the request, order or direction of any of the Holders of Notes or the
Controlling Party, pursuant to the provisions of this Indenture, unless such
Holders or the Controlling Party shall have offered to the Trustee reasonable
security or indemnity against the costs, expenses and liabilities that may be
incurred therein or thereby; provided, however, that the Trustee shall, upon the
occurrence of an Event of Default (that has not been cured), exercise the rights
and powers vested in it by this Indenture with reasonable care and skill.

        (g) The 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 Insurer (so long as no
Insurer Default shall have occurred and be continuing) or (if an

                                       49
<PAGE>
Insurer Default shall have occurred and be continuing) by the Holders of Notes
evidencing not less than 25% of the Outstanding Amount of the Notes, voting
together as a single Class; provided, however, that if the payment within a
reasonable time to the 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
Trustee, not reasonably assured to the Trustee by the security afforded to it by
the terms of this Indenture or the Sale and Servicing Agreement, the Trustee may
require reasonable indemnity against such cost, expense or liability as a
condition to so proceeding. The reasonable expense of each such investigation
shall be paid by the Person making such request, or, if paid by the Trustee,
shall be reimbursed by the Person making such request upon demand.

        Section 6.03. Individual Rights of Trustee. The 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 Trustee. Any Paying Agent, Note Registrar,
co-registrar or co-paying agent may do the same with like rights. However, the
Trustee is required to comply with Sections 6.11 and 6.12.

        Section 6.04. Trustee's Disclaimer. The Trustee shall not be responsible
for and makes no representation as to the validity or adequacy of this
Indenture, the Trust Estate or the Notes, it shall not be accountable for the
Issuer's use of the proceeds from the Notes, and it shall not be responsible for
any statement of the Issuer in this Indenture or in any document issued in
connection with the sale of the Notes or in the Notes other than the Trustee's
certificate of authentication.

        Section 6.05. Notice of Defaults. If a Default occurs and is continuing
and if it is known to a Responsible Officer of the Trustee, the Trustee shall
mail to each Noteholder and the Insurer notice of the Default within 90 days
after it occurs. Except in the case of a Default in payment of principal of or
interest on any Note (including payments pursuant to the redemption of Notes),
the Trustee may withhold the notice 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 6.06. Reports by Trustee to Holders. The 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.

        Section 6.07. Compensation and Indemnity. The Issuer shall, or shall
cause the Administrator to, pay to the Trustee from time to time reasonable
compensation for its services. The 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 Administrator to, reimburse the 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
Trustee's agents, counsel, accountants and experts. The Issuer shall, or shall
cause the Administrator to, indemnify the Trustee against any and all loss,
liability or expense (including attorneys' fees) incurred by it in connection
with the administration of this trust and the performance of its duties
hereunder. The Trustee shall notify the Issuer and the Administrator promptly of
any claim for which it may seek indemnity. Failure by the Trustee to so notify
the Issuer and the Administrator shall not relieve the Issuer or the
Administrator of its obligations hereunder. The Issuer shall, or shall cause the

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Administrator to, defend any such claim, and the Trustee may have separate
counsel and the Issuer shall, or shall cause the Administrator to, pay the fees
and expenses of such counsel. Neither the Issuer nor the Administrator need
reimburse any expense or indemnify against any loss, liability or expense
incurred by the Trustee through the Trustee's own willful misconduct, negligence
or bad faith.

        The Issuer's payment obligations to the Trustee pursuant to this Section
shall survive the discharge of this Indenture or the resignation or removal of
the Trustee; provided, however, that neither the Issuer nor the Administrator
need reimburse any expense or indemnify against any loss, liability or expense
incurred by the Trustee through the Trustee's own willful misconduct, negligence
or bad faith. When the Trustee incurs expenses after the occurrence of a Default
specified in Section 5.01(iv) or (v) with respect to the Issuer, the expenses
are intended to constitute expenses of administration under Title 11 of the
United States Code or any other applicable federal or state bankruptcy,
insolvency or similar law.

        Section 6.08. Replacement of Trustee. The Trustee may resign at any time
by so notifying the Issuer, the Master Servicer and the Insurer. The Issuer,
may, with the consent of the Insurer, and, at the request of the Insurer shall,
remove the Trustee (unless an Insurer Default shall have occurred and be
continuing) if:

               (i) the Trustee fails to comply with Section 6.11;

               (ii) a court having jurisdiction in the premises in respect of
        the Trustee in an involuntary case or proceeding under federal or state
        banking or bankruptcy laws, as now or hereafter constituted, or any
        other applicable federal or state bankruptcy, insolvency or other
        similar law, shall have entered a decree or order granting relief or
        appointing a receiver, liquidator, assignee, custodian, trustee,
        conservator, sequestrator (or similar official) for the Trustee or for
        any substantial part of the Trustee's property, or ordering the
        winding-up or liquidation of the Trustee's affairs, provided any such
        decree or order shall have continued unstayed and in effect for a period
        of 30 consecutive days;

               (iii) the Trustee commences a voluntary case under any federal or
        state banking or bankruptcy laws, as now or hereafter constituted, or
        any other applicable federal or state bankruptcy, insolvency or other
        similar law, or consents to the appointment of or taking possession by a
        receiver, liquidator, assignee, custodian, trustee, conservator,
        sequestrator or other similar official for the Trustee or for any
        substantial part of the Trustee's property, or makes any assignment for
        the benefit of creditors or fails generally to pay its debts as such
        debts become due or takes any corporate action in furtherance of any of
        the foregoing;

               (iv) the Trustee otherwise becomes incapable of acting; or

               (v) the Trustee breaches any representation, warranty or covenant
        made by it under any Basic Document (including any failure or delay in
        the performance of any of its obligations because of circumstances
        beyond its control, as contemplated by Section 6.01(m)).

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        The Issuer shall remove the Trustee if an Insurer Default shall have
occurred and be continuing and any of the events described in clauses (ii)
through (v) above have occurred. If the Trustee resigns or is removed or if a
vacancy exists in the office of Trustee for any reason (the Trustee in such
event being referred to herein as the retiring Trustee), the Issuer shall
promptly appoint a successor Trustee reasonably acceptable to the Insurer (so
long as an Insurer Default shall not have occurred and be continuing). If the
Issuer fails to appoint such a successor Trustee, the Insurer may appoint a
successor Trustee.

        A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Issuer. Thereupon the resignation
or removal of the retiring Trustee shall become effective, and the successor
Trustee shall have all the rights, powers and duties of the Trustee under this
Indenture. The Issuer or the successor Trustee shall mail a notice of its
succession to Noteholders. The retiring Trustee shall promptly transfer all
property held by it as Trustee to the successor Trustee.

        If a successor Trustee does not take office within 45 days after the
retiring Trustee resigns or is removed, the retiring Trustee, the Insurer
(provided that no Insurer Default shall have occurred and be continuing), the
Issuer or the Holders of a majority of the Outstanding Amount of the Notes may
petition any court of competent jurisdiction for the appointment of a successor
Trustee.

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

        Any resignation or removal of the Trustee and appointment of a successor
Trustee pursuant to the provisions of this Section shall not become effective
until acceptance of appointment by the successor Trustee pursuant to this
Section and payment of all fees and expenses owed to the outgoing Trustee.
Notwithstanding the replacement of the Trustee pursuant to this Section, the
retiring Trustee shall be entitled to payment or reimbursement of such amounts
as such Person is entitled pursuant to Section 6.07.

        Section 6.09. Successor Trustee by Merger. If the 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 Trustee; provided, that such corporation or
banking association shall be otherwise qualified and eligible under Section
6.11. The Trustee shall provide the Insurer and each Rating Agency prompt notice
of any such transaction.

        In case at the time such successor by merger, conversion or
consolidation to the 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 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 Trustee may authenticate such Notes either in the name of any predecessor
hereunder or in the name of the successor to the 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 Trustee shall have.

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        Section 6.10. Appointment of Co-Trustee or Separate Trustee.

        (a) Notwithstanding any other provision 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 Trustee and the
Administrator acting jointly 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, jointly with the Trustee, 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 and the Insurer, such title to
the Trust Estate, or any part hereof, and, subject to the other provisions of
this Section, such powers, duties, obligations, rights and trusts as the Trustee
and the Administrator may consider necessary or desirable. If the Administrator
shall not have joined in such appointment within 15 days after the receipt by it
of a request so to do, the Trustee alone shall have the power to make such
appointment. No co-trustee or separate trustee hereunder shall be required to
meet the terms of eligibility as a successor Trustee under Section 6.11 and no
notice to Noteholders of the appointment of any co-trustee or separate trustee
shall be required under Section 6.08.

        (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 Trustee shall be conferred or imposed upon and
        exercised or performed by the 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 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
        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 Issuer 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 Trustee;

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

               (iii) the Trustee and the Administrator 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 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. 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 co-appointment, either jointly with the Trustee or separately,
as may be provided therein, subject to all the provisions of this Indenture,
specifically including every provision relating to the conduct of, affecting the
liability of, or affording protection to, the Trustee. Every such instrument
shall be filed with the Trustee and a copy thereof given to the Administrator.

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<PAGE>
        (d) Any separate trustee or co-trustee may at any time constitute the
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
Trustee, to the extent permitted by law, without the appointment of a new or
successor trustee. Notwithstanding anything to the contrary in this Indenture,
the appointment of any separate trustee or co-trustee shall not relieve the
Trustee of its obligations and duties under this Indenture.

        Section 6.11. Eligibility; Disqualification.

        (a) The Trustee shall at all times satisfy the requirements of TIA
Section 310(a) and shall in addition 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 Trustee shall provide copies of such reports to the Insurer upon
request. The Trustee shall comply with TIA Section 310(b); provided, 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.

        (b) If the long term debt rating of the Trustee shall not be at least
Baa3 from Moody's and BBB- from Standard & Poor's, the Rating Agencies shall be
given notice of such lower long-term debt rating.

        Section 6.12. Preferential Collection of Claims Against Issuer. The
Trustee shall comply with TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). A 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 of Trustee. The Trustee
hereby makes the following representations and warranties on which the Issuer
and Noteholders shall rely:

               (i) the Trustee is a corporation duly organized, validly
        existing and in good standing under the laws of its place of
        incorporation; and

               (ii) the Trustee has full power, authority and legal right to
        execute, deliver, and perform this Indenture and shall have taken all
        necessary action to authorize the execution, delivery and performance by
        it of this Indenture.

        Section 6.14. Sales Finance Licenses. The Trustee shall take such action
as, in its reasonable judgment, shall be necessary to maintain the effectiveness
of all sales finance company licenses required under the Maryland Code and all
licenses required under the Pennsylvania Motor Vehicle Sales Finance Act in
connection with this Indenture and the transactions contemplated hereby until
the lien and security interest of this Indenture shall no longer be in effect in
accordance with the terms hereof.

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                                  ARTICLE SEVEN

                         NOTEHOLDERS' LISTS AND REPORTS

        Section 7.01. Issuer to Furnish Trustee Names and Addresses of
Noteholders. The Issuer will furnish or cause to be furnished to the Trustee (i)
not more than five days after each Record Date, a list, in such form as the
Trustee may reasonably require, of the names and addresses of the Holders of
Notes as of such Record Date and (ii) at such other times as the 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 ten days
prior to the time such list is furnished; provided, however, that so long as the
Trustee is the Note Registrar, no such list shall be required to be furnished.
The Trustee or, if the Trustee is not the Note Registrar, the Issuer shall
furnish to the Insurer in writing at such times as the Insurer may reasonably
request a copy of the list.

        Section 7.02. Preservation of Information; Communications to
Noteholders.

        (a) The Trustee shall preserve, in as current a form as is reasonably
practicable, the names and addresses of the Holders of Notes contained in the
most recent list furnished to the Trustee as provided in Section 7.01 and the
names and addresses of Holders of Notes received by the Trustee in its capacity
as Note Registrar. The Trustee may destroy any list furnished to it as provided
in such Section 7.01 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 Trustee and the Note Registrar shall have the
protection of TIA Section 312(c).

        Section 7.03. Reports by Issuer.

        (a) The Issuer shall:

               (i) file with the 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) which 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 Trustee and the Commission in accordance with
        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 Trustee (and the 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 7.03(a) as may
        be required 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 7.04. Reports by Trustee. To the extent that any of the events
described in TIA Section 313(a) shall have occurred, the Trustee shall, within
60 days after each December 15 beginning with December 15, 2002, mail to the
Insurer and 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 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 Trustee with the Commission and with each stock exchange, if any,
on which the Notes are listed and of which listing the Trustee has been
informed. The Issuer shall notify the Trustee if and when the Notes are listed
on any stock exchange.

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<PAGE>

                                  ARTICLE EIGHT

                      ACCOUNTS, DISBURSEMENTS AND RELEASES

        Section 8.01. Collection of Money. Except as otherwise expressly
provided herein, the 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 Trustee pursuant to this Indenture and the Sale and Servicing
Agreement. The Trustee shall apply all such money received by it as provided in
this Indenture and the Sale and Servicing Agreement. 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 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 Five.

        Section 8.02. Trust Accounts.

        (a) On or prior to the Closing Date, the Issuer shall cause the Master
Servicer to establish and maintain, in the name of the Trustee, for the benefit
of the Noteholders and the Certificateholders, the Trust Accounts as provided in
Section 5.01 of the Sale and Servicing Agreement.

        (b) All Net Collections with respect to each Due Period will be
deposited in the Collection Account as provided in Section 5.02 of the Sale and
Servicing Agreement. On the Business Day immediately preceding each Distribution
Date, all amounts required to be deposited in the Note Distribution Account with
respect to the preceding Due Period pursuant to Section 5.05 of the Sale and
Servicing Agreement will be transferred from the Collection Account and/or the
Spread Account to the Note Distribution Account.

        (c) On each Distribution Date, the Trustee shall distribute all amounts
on deposit in the Note Distribution Account in respect of such Distribution Date
to Noteholders in respect of the Notes to the extent of amounts due and unpaid
on the Notes for principal and interest in the amounts and priority set forth in
Section 5.05 of the Sale and Servicing Agreement or Section 2.07(e), as the case
may be.

        (d) If on any Distribution Date there will be insufficient funds in the
Note Distribution Account to make any payment required to be made pursuant to
Section 8.02(c), the Trustee will make a claim under the Note Policy as
described in Section 5.18.

        Section 8.03. General Provisions Regarding Accounts.

        (a) So long as no Default or Event of Default shall have occurred and be
continuing, all or a portion of the funds in the Trust Accounts shall be
invested in Eligible Investments and reinvested by the Trustee upon receipt of
an Issuer Order, subject to the provisions of

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<PAGE>
Section 5.01(b) of the Sale and Servicing Agreement. Except as otherwise
provided in Section 5.01(b) of the Sale and Servicing Agreement, all income or
other gain from investments of monies deposited in such Trust Accounts shall be
deposited by the Trustee in the Collection Account, and any loss resulting from
such investments shall be charged to the related Trust Account. The Issuer will
not direct the Trustee to make any investment of any funds or to sell any
investment held in any of the Trust Accounts unless the security interest
Granted and perfected in such account will continue to be perfected in such
investment or the proceeds of such sale, in either case without any further
action by any Person, and, in connection with any direction to the Trustee to
make any such investment or sale, if requested by the Trustee, the Issuer shall
deliver to the Trustee an Opinion of Counsel, acceptable to the Trustee, to such
effect.

        (b) Subject to Section 6.01(c), the Trustee shall not in any way be held
liable by reason of any insufficiency in any of the Trust Accounts resulting
from any loss on any Eligible Investment included therein except for losses
attributable to the Trustee's failure to make payments on such Eligible
Investments issued by the Trustee, in its commercial capacity as principal
obligor and not as Trustee, in accordance with their terms.

        (c) If (i) the Issuer shall have failed to give investment directions
for any funds on deposit in the Trust Accounts to the Trustee by 11:00 a.m., New
York City time (or such other time as may be agreed by the Issuer and Trustee),
on any Business Day, (ii) a Default or Event of Default shall have occurred and
be continuing with respect to the Notes but the Notes have not been declared due
and payable pursuant to Section 5.02 or (iii) if such Notes have been declared
due and payable following an Event of Default but amounts collected or
receivable from the Trust Estate are being applied in accordance with Section
5.05 as if there had not been such a declaration, then the Trustee shall, to the
fullest extent practicable, invest and reinvest funds in the Trust Accounts in
one or more Eligible Investments.

        Section 8.04. Release of Trust Estate.

        (a) Subject to the payment of its fees and expenses pursuant to Section
6.07, the Trustee may, and when required by the provisions of this Indenture
shall, execute instruments to release property from the lien of this Indenture,
or convey the Trustee's interest in the same, in a manner and under
circumstances that are not inconsistent with the provisions of this Indenture.
No party relying upon an instrument executed by the Trustee as provided in this
Article shall be bound to ascertain the Trustee's authority, inquire into the
satisfaction of any conditions precedent or see to the application of any
monies.

        (b) The Trustee shall, at such time as there are no Notes Outstanding
and all sums due the Trustee pursuant to Section 6.07 have been paid, release
any remaining portion of the Trust Estate that secured the Notes from the lien
of this Indenture and release to the Issuer or any other Person entitled thereto
any funds then on deposit in the Trust Accounts. The Trustee shall release
property from the lien of this Indenture pursuant to this Section 8.04(b) only
upon receipt of an Issuer Request accompanied by (i) an Officer's Certificate
and an Opinion of Counsel, in each case stating that all conditions precedent
provided in this Indenture have been complied with and (ii) if required by the
TIA, Independent Certificates in accordance with TIA Sections 314(c) and
314(d)(1) meeting the applicable requirements of Section 11.01.

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<PAGE>
        Section 8.05. Opinion of Counsel. The Trustee shall receive at least
seven days' notice when requested by the Issuer to take any action pursuant to
Section 8.04(a), accompanied by copies of any instruments involved, and the
Trustee shall also require, as a condition to such action, an Opinion of
Counsel, in form and substance satisfactory to the 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 value of the 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 Trustee in connection with any such action.

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                                  ARTICLE NINE

                             SUPPLEMENTAL INDENTURES

        Section 9.01. Supplemental Indentures Without Consent of Noteholders.

        (a) Without the consent of the Holders of any Notes but with the consent
of the Insurer (unless an Insurer Default shall have occurred and be continuing
or the Policy Expiration Date has occurred) and with prior notice to each Rating
Agency, the Issuer and the Trustee, when authorized by an Issuer Order, and the
other parties hereto 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 TIA as in force at the date of the execution thereof), in form satisfactory
to the 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
        or confirm unto the Trustee any property subject or required to be
        subjected to the lien created by this Indenture, or to subject to the
        lien created by 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 Holders of the Notes, 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 Trustee;

               (v) to cure any ambiguity, to correct or supplement any provision
        herein or in any supplemental indenture which may be inconsistent with
        any other provision herein or in any supplemental indenture or the other
        Basic Documents or to make any other provisions with respect to matters
        or questions arising under this Indenture or in any supplemental
        indenture that shall not be inconsistent with the provisions of this
        Indenture; provided that such action shall not adversely affect the
        interests of the Holders of the Notes or result in the creation of a new
        security;

               (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 Six; 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 he expressly required by the TIA.

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

        (b) The Issuer and the Trustee, when authorized by an Issuer Order, may,
also without the consent of any of the Holders of the Notes but with the consent
of the Insurer (unless an Insurer Default shall have occurred and be continuing
or the Policy Expiration Date has occurred) and with prior notice to each Rating
Agency, 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
such action shall not, as evidenced by an Opinion of Counsel, adversely affect
in any material respect the interests of any Noteholder or result in the
creation of a new security.

        Section 9.02. Supplemental Indentures With Consent of Noteholders. The
Issuer and the Trustee, when authorized by an Issuer Order, also may, with prior
notice to each Rating Agency, with the consent of the Insurer (unless an Insurer
Default shall have occurred and be continuing) and with the consent of the
Holders of not less than a majority of the Outstanding Amount of the Notes, by
Act of such Holders delivered to the Issuer and the 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 prior written consent of the Swap Counterparty,
modify or amend this Indenture in the manner contemplated in Sections
1(h)(vii)(a) though (e) of the ISDA Schedule to the Interest Rate Swap
Agreement; provided, further, that, subject to the express rights of the Insurer
under the Basic Documents, no such supplemental indenture shall, without the
consent of the Holder of each Outstanding Note affected thereby:

               (i) change the Final Scheduled Distribution Date of any Class of
        Notes or 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 Redemption Price with respect thereto,
        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 Five, 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);

               (ii) 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;

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

               (iv) reduce the percentage of the Outstanding Amount of the Notes
        required to direct the Trustee to sell or liquidate the Trust Estate
        pursuant to Section 5.04 or amend the provisions of this Article which
        specify the percentage of the Outstanding Amount of the Notes required
        to amend this Indenture or the other Basic Documents;

               (v) 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 other Basic Documents cannot be
        modified or waived without the consent of the Holder of each Outstanding
        Note affected thereby;

               (vi) 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 Distribution Date
        (including the calculation of any of the individual components of such
        calculation) or to affect the rights of the Holders of Notes to the
        benefit of any provisions for the mandatory redemption of the Notes
        contained herein; or

               (vii) permit the creation of any lien ranking prior to or on a
        parity with the lien created by this Indenture with respect to any part
        of the Trust Estate or, except as otherwise permitted or contemplated
        herein, terminate the lien created by this Indenture on any property at
        any time subject hereto or deprive the Holder of any Note of the
        security provided by the lien created by this Indenture, and further
        provided that any such action will not, as evidenced by an Opinion of
        Counsel satisfactory to the Trustee, result in the creation of a new
        security.

        The 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 Trustee shall not be liable for any
such determination made in good faith.

        It shall not be necessary for any Act of Noteholders under this Section
to approve the particular form of any proposed supplemental indenture, but it
shall be sufficient if such Act shall approve the substance thereof.

        Promptly after the execution by the parties hereto of any supplemental
indenture pursuant to this Section, the 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. Any failure
of the Trustee to mail such notice, or any defect therein, shall not, however,
in any way impair or affect the validity of any such supplemental indenture.

        Section 9.03. Execution of Supplemental Indentures. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by
this Indenture, the Trustee shall be entitled to receive, and subject to
Sections 6.01 and 6.02 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. The Trustee may, but shall not be obligated to,
enter into any such

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supplemental indenture that affects the Trustee's own rights, duties,
liabilities or immunities under this Indenture or otherwise.

        Section 9.04. Effect of Supplemental Indenture. Upon the execution of
any supplemental indenture pursuant to the provisions hereof, this Indenture
shall be and 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 parties hereto 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.

        Section 9.05. Conformity With Trust Indenture Act. Every amendment of
this Indenture and every supplemental indenture executed pursuant to this
Article 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 9.06. Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article may, and if required by the Trustee shall, bear a
notation in form approved by the Trustee as to any matter provided for in such
supplemental indenture. If the Issuer or the Trustee shall so determine, new
notes so modified as to conform, in the opinion of the Trustee and the Issuer,
to any such supplemental indenture may be prepared and executed by the Issuer
and authenticated and delivered by the Trustee in exchange for Outstanding
Notes.

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                                   ARTICLE TEN

                               REDEMPTION OF NOTES

        Section 10.01. Redemption.

        (a) In the event that the Seller, pursuant to Section 9.01(a) of the
Sale and Servicing Agreement, purchases all the remaining Contracts of the
Trust, the Notes are subject to redemption on the Distribution Date on which
such repurchase occurs, for a purchase price equal to the Redemption Price;
provided, however, that the Issuer has available funds sufficient to pay the
Redemption Price. The Seller, the Master Servicer or the Issuer shall furnish
the Insurer and each Rating Agency notice of such redemption. If the Notes are
to be redeemed pursuant to this Section 10.01(a), the Master Servicer or the
Issuer shall furnish notice of such election to the Trustee not later than 20
days prior to the Redemption Date and the Master Servicer shall deposit the
proceeds from the purchase of the Contracts of the Trust received from the
Seller or the Certificateholders, as the case may be, into the Collection
Account, whereupon the Trustee, at the direction of the Master Servicer, shall
deposit the Redemption Price of the Notes to be redeemed, whereupon all such
Notes shall be due and payable in accordance with Section 9.01(e) of the Sale
and Servicing Agreement on the Redemption Date upon the furnishing of a notice
complying with Section 10.02 to each Holder of the Notes.

        (b) In the event that the assets of the Issuer are sold pursuant to
Section 5.02(b) of this Indenture, the proceeds of such sale shall be
distributed as provided in Section 5.06. If amounts are to be paid to
Noteholders pursuant to this Section 10.01(b), the Master Servicer or the Issuer
shall, to the extent practicable, furnish notice of such event to the Trustee
not later than 20 days prior to the Redemption Date whereupon all such amounts
shall be payable on the Redemption Date.

        Section 10.02. Form of Redemption Notice.

        (a) Notice of redemption under Section 10.01(a) shall be given by the
Trustee by first-class mail, postage prepaid, mailed not less than 20 days prior
to the applicable Redemption Date to each Holder of Notes, as of the close of
business on the Record Date preceding the applicable Redemption Date, at such
Holder's address appearing in the Note Register. In addition, the Administrator
shall notify the Rating Agencies upon the redemption of any Class of Notes,
pursuant to Section 1(a)(i) of the Administration Agreement.

        All notices of redemption shall state:

               (i) the Redemption Date;

               (ii) the Redemption Price;

               (iii) the place where such Notes are to be surrendered for
        payment of the Redemption Price (which shall be the office or agency of
        the Issuer to be maintained as provided in Section 3.02); and

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               (iv) that on the Redemption Date, the Redemption Price will
        become due and payable upon each Note and that interest thereon shall
        cease to accrue from and after the Redemption Date.

        Notice of redemption of the Notes shall be given by the Trustee in the
name and at the expense of the Issuer. Failure to give any required notice of
redemption, or any defect therein, to any Holder of any Note shall not impair or
affect the validity of the redemption of any other Note.

        (b) Notwithstanding the foregoing, prior notice of redemption under
Section 10.01(b) is not required to be given to Noteholders.

        Section 10.03. Notes Payable on Redemption Date. The Notes or portions
thereof to be redeemed shall, following notice of redemption (if any) as
required by Section 10.02, on the Redemption Date become due and payable at the
Redemption Price and (unless the Issuer shall default in the payment of the
Redemption Price) no interest shall accrue on the Redemption Price for any
period after the date to which accrued interest is calculated for purposes of
calculating the Redemption Price.

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                                 ARTICLE ELEVEN

                                  MISCELLANEOUS

        Section 11.01. Compliance Certificates and Opinions, etc.

        (a) Upon any application or request by the Issuer to the Trustee to take
any action under any provision of this Indenture, the Issuer shall furnish to
the 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.
Notwithstanding the foregoing, 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:

               (i) 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;

               (ii) 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;

               (iii) 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

               (iv) 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 Trustee that is to be made the basis for the release of any
property subject to the lien created by this Indenture, the Issuer shall, in
addition to any obligation imposed in Section 11.01(a) or elsewhere in this
Indenture, furnish to the Trustee and the Insurer (so long as no Insurer Default
shall have occurred and be continuing) an Officer's Certificate certifying or
stating the opinion of the signer thereof 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.

              (ii) Whenever the Issuer is required to furnish to the Trustee and
        the Insurer an Officer's Certificate certifying or stating the opinion
        of any signer thereof as to the

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        matters described in clause (i) above, the Issuer shall also deliver to
        the Trustee and the Insurer an Independent Certificate as to the same
        matters, if the fair value to the Issuer of the property to be so
        deposited and of all other such property 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 Officer's Certificates delivered
        pursuant to clause (i) above and this clause (ii), is 10% or more of the
        Outstanding Amount of the Notes, but such Officer's Certificate need not
        be furnished with respect to any property so deposited, if the fair
        value thereof to the Issuer as set forth in the related Officer's
        Certificate is less than $25,000 or less than one percent of the
        Outstanding Amount of the Notes.

             (iii) Other than with respect to any release described in clause
        (A) or (B) of Section 11.01(b)(v), whenever any property or securities
        are to be released from the lien created by this Indenture, the Issuer
        shall also furnish to the Trustee and the Insurer (so long as no Insurer
        Default shall have occurred and be continuing) 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
        created by this Indenture in contravention of the provisions hereof.

              (iv) Whenever the Issuer is required to furnish to the Trustee and
        the Insurer 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 Trustee and the Insurer an
        Independent Certificate as to the same matters if the fair value of the
        property or securities and of all other property (other than property
        described in clauses (A) or (B) of Section 11.01(b)(v)) or securities
        released from the lien created by this Indenture since the commencement
        of the then current fiscal year, as set forth in the Officer's
        Certificates required by clause (iii) above and this clause (iv), equals
        10% or more of the Outstanding Amount of the Notes, but such Officer's
        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 Outstanding Amount of the Notes.

        Notwithstanding Section 2.12 or any other provision of this Section, the
Issuer may, without compliance with the other provisions of this Section, (A)
collect, liquidate, sell or otherwise dispose of the Contracts as and to the
extent permitted or required by the Basic Documents and (B) make cash payments
out of the Trust Accounts as and to the extent permitted or required by the
Basic Documents, so long as the Issuer shall deliver to the Trustee every six
months, commencing December 15, 2002, an Officer's Certificate stating that all
the dispositions of Collateral described in clauses (A) or (B) that occurred
during the preceding six calendar months were in the ordinary course of the
Issuer's business and that the proceeds thereof were applied in accordance with
the Basic Documents.

        Section 11.02. Form of Documents Delivered to 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

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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 his 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, a Seller or the Issuer, stating that the information with respect to
such factual matters is in the possession of the Master Servicer, such Seller or
the Issuer, unless such officer or 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 to 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 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 Trustee's right to rely upon the truth and accuracy of
any statement or opinion contained in any such document as provided in Article
Six.

        Section 11.03. 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 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 6.01) conclusive in
favor of the Trustee and the Issuer, if made in the manner provided in this
Section.

        (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 Trustee deems
sufficient.

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

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        (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
Trustee or the Issuer in reliance thereon, whether or not notation of such
action is made upon such Note.

        Section 11.04. Notices, etc., to Trustee, Issuer, Insurer and Rating
Agencies.

        (a) 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:

               (i) the Trustee by any Noteholder or by the Issuer shall be
        sufficient for every purpose hereunder if in writing, personally
        delivered, sent by facsimile transmission and confirmed or mailed by
        overnight service, to or with the Trustee at its Corporate Trust Office;

               (ii) the Issuer by the Trustee or by any Noteholder shall be
        sufficient for every purpose hereunder if in writing, personally
        delivered, sent by facsimile transmission and confirmed or mailed by
        overnight service, to the Issuer addressed to: WFS Financial 2002-4
        Owner Trust, in care of Chase Manhattan Bank USA, National Association,
        as Owner Trustee, c/o JP Morgan Chase, Attention: Institutional Trust
        Services, 500 Stanton Christiana Road, OPS4/3rd Floor, Newark, Delaware
        19713, or at any other address furnished in writing to the Trustee by
        the Issuer; or

               (iii) the Insurer by the Issuer or the Trustee shall be
        sufficient for any purpose hereunder if in writing, personally
        delivered, sent by facsimile transmission and confirmed or mailed by
        overnight service, to the recipient as follows:

               Financial Security Assurance Inc.
               350 Park Avenue
               New York, NY  10022
               Attention:  Transaction Oversight Department
               Telex No.: (212) 688-3101
               Confirmation:  (212) 826-0100
               Telecopy Nos.: (212) 339-3518
                              (212) 339-3529

(In each case in which notice or other communication to the Insurer refers to an
Event of Default, a claim on the Note Policy or with respect to which failure on
the part of the Insurer to respond shall be deemed to constitute consent or
acceptance, then a copy of such notice or other communication should also be
sent to the attention of the General Counsel and the Head--Financial Guaranty
Group "URGENT MATERIAL ENCLOSED.")

        (b) Notices required to be given to the Rating Agencies by the Issuer,
the Trustee or the Owner Trustee shall be in writing, personally delivered, sent
by facsimile transmission and confirmed or mailed by overnight service, to (i)
in the case of Moody's, at Moody's Investors

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Service, Inc., ABS Monitoring Department, 99 Church Street, New York, New York
10007 and (ii) in the case of Standard & Poor's, at Standard & Poor's, 55 Water
Street, New York, New York 10041, Attention: Asset Backed Surveillance
Department; or as to each of the foregoing, at such other address as shall be
designated by written notice to the other parties.

        Section 11.05. 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 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 of Noteholders when such notice is required to be given
pursuant to any provision of this Indenture, then any manner of giving such
notice as shall be satisfactory to the 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, and shall not under any circumstance constitute a Default or Event of
Default

        Section 11.06. Alternate Payment and Notice Provisions. Notwithstanding
any provision of this Indenture or any of the Notes to the contrary, the Issuer
may enter into any agreement with any Holder of a Note providing for a method of
payment, or notice by the Trustee or any Paying Agent to such Holder, that is
different from the methods provided for in this Indenture for such payments or
notices. The Issuer will furnish to the Trustee a copy of each such agreement
and the Trustee will cause payments to be made and notices to be given in
accordance with such agreements.

        Section 11.07. 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.

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        Section 11.08. 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 11.09. 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 Trustee in this
Indenture shall bind its successors, co-trustees and agents.

        Section 11.10. Severability. 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. Each of the Insurer and its
successors and assigns shall be a third-party beneficiary to the provisions of
this Indenture, and shall be entitled to rely upon and directly to enforce such
provisions of this Indenture so long as no Insurer Default shall have occurred
and be continuing. 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. The Insurer may disclaim any of its rights and powers under this
Indenture, but not its duties and obligations under the Note Policy, upon
delivery of a written notice to the Trustee.

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

        Section 11.14. Counterparts. This Indenture may be executed in several
counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.

        Section 11.15. 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 Trustee or any other counsel reasonably acceptable
to the Trustee and the Insurer) 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 Trustee
under this Indenture.

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        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 Trustee on the Notes or under this Indenture or any certificate or other
writing delivered in connection herewith or therewith, against (i) the Trustee
or the Owner Trustee in its individual capacity, (ii) any owner of a beneficiary
interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer,
director, employee or agent of the Trustee or the Owner Trustee in its
individual capacity, any holder of a beneficial interest in the Issuer, the
Owner Trustee or the Trustee or of any successor or assign of the Trustee or the
Owner Trustee in its individual capacity, except as any such Person may have
expressly agreed (it being understood that the 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 Six, Seven and Eight of
the Trust Agreement.

        Section 11.17. No Petition. The parties hereto, by entering into this
Indenture, and each Noteholder, by accepting a Note or a beneficial interest in
a Note, hereby covenant and agree that they will not at any time institute
against either Seller or the Issuer, or join in any institution against either
Seller 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 other Basic Documents.

        Section 11.18. Inspection. The Issuer agrees that, on reasonable prior
notice, it will permit any representative of the Trustee or of the Insurer,
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, employees and independent certified public accountants, all
at such reasonable times and as often as may be reasonably requested, the
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 Trustee may reasonably determine that such disclosure is
consistent with its obligations hereunder.

        Section 11.19. Limitation of Liability of Owner Trustee. Notwithstanding
anything contained herein to the contrary, this instrument has been
countersigned by Chase Manhattan Bank USA, National Association not in its
individual capacity but solely in its capacity as Owner Trustee of the Issuer
and in no event shall Chase Manhattan Bank USA, National Association in its
individual capacity or any beneficial owner of the Issuer have any liability for
the representations, warranties, covenants, agreements or other obligations of
the Issuer hereunder, as to all of which recourse shall be had solely to the
assets of the Issuer. For all purposes of this 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 Six, Seven and Eight of the Trust Agreement.

                                       72
<PAGE>
        Section 11.20. Limitation on Recourse Against WFSRC. Notwithstanding
anything to the contrary contained in this Indenture, the obligations of WFSRC
under the Basic Documents are solely the corporate obligations of WFSRC, and
shall be payable by WFSRC, solely as provided the Basic Documents. WFSRC shall
only be required to pay (a) any fees, expenses, indemnities or other liabilities
that it may incur under the Basic Documents from funds available pursuant to,
and in accordance with, the payment priorities set forth in this Indenture and
(ii) to the extent WFSRC has additional funds available (other than funds
described in the preceding clause (i)) that would be in excess of amounts that
would be necessary to pay the debt and other obligations of WFSRC incurred in
accordance with WFSRC's certificate of incorporation and all financing documents
to which WFSRC is a party. The agreement set forth in the preceding sentence
shall constitute a subordination agreement for purposes of Section 510(a) of the
Bankruptcy Code. In addition, no amount owing by WFSRC hereunder in excess of
the liabilities that it is required to pay in accordance with the preceding
sentence shall constitute a "claim" (as defined in Section 101(5) of the
Bankruptcy Code) against it.

                                       73
<PAGE>
        IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed and delivered as of the day and year first above written.

                                   WFS FINANCIAL 2002-4 OWNER TRUST

                                   By:  CHASE MANHATTAN BANK USA, NATIONAL
                                        ASSOCIATION,
                                        not in its individual capacity but
                                        solely on behalf of the Issuer as Owner
                                        Trustee under the Trust Agreement

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

                                   DEUTSCHE BANK TRUST COMPANY AMERICAS, not in
                                   its individual capacity but solely as Trustee

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

<PAGE>
                                                                      SCHEDULE A

                              SCHEDULE OF CONTRACTS

Omitted -- Schedules of Contracts on file at the offices of the Seller, the
Master Servicer and the Owner Trustee.

                                      SA-1

<PAGE>
                                                                       EXHIBIT A

                      FORM OF SALE AND SERVICING AGREEMENT

                                      A-1
<PAGE>
                                                                       EXHIBIT B

                        FORM OF NOTE DEPOSITORY AGREEMENT

                                      B-1
<PAGE>
                                                                       EXHIBIT C

                             FORM OF CLASS A-1 NOTE

        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.

        THIS SECURITY IS NOT A SAVINGS ACCOUNT OR DEPOSIT AND IT IS NOT INSURED
BY THE UNITED STATES OR ANY AGENCY OR FUND OF THE UNITED STATES.

        THE PRINCIPAL OF THIS NOTE IS PAYABLE IN FULL ON THE DATE 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.

                        WFS FINANCIAL 2002-4 OWNER TRUST

                            1.67625% CLASS A-1 NOTES

REGISTERED                                                          $245,000,000

No. R-A1                                                   CUSIP NO. 92926J AA 4

        WFS Financial 2002-4 Owner Trust, a statutory trust organized and
existing under the laws of the State of Delaware (the "Issuer"), for value
received, hereby promises to pay to Cede & Co., or registered assigns, the
principal sum of Two Hundred Forty Five Million Dollars ($245,000,000), payable
to the extent described in the Indenture referred to on the reverse hereof on
each Distribution Date; provided, however, that the entire unpaid principal
amount of this Note shall be payable on the earlier of November 20, 2003 (the
"Class A-1 Final Scheduled Distribution Date") and the Redemption Date, if any,
selected pursuant to the Indenture.

        The Issuer will pay interest on this Note at the rate per annum shown
above on each Distribution Date until the principal of this Note is paid or made
available for payment, on the principal amount of this Note outstanding on the
preceding Distribution Date (after giving effect to all payments of principal
made on the preceding Distribution Date), or on the Closing Date in the case of
the first Distribution Date, subject to certain limitations contained in the
Indenture. Interest on this Note will accrue for each Distribution Date from and
including the prior

                                      C-1
<PAGE>
Distribution Date to but excluding the current Distribution Date or, in the case
of the first Distribution Date, from November 14, 2002. The Issuer shall pay
interest on overdue installments of interest at the Class A-1 Rate to the extent
lawful. Interest will be computed on the basis of a 360-day year and the actual
number of days elapsed during the related Interest Period. 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 Issuer
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.

        The Notes are entitled to the benefits of a financial guaranty insurance
policy (the "Note Policy") issued by Financial Security Assurance Inc. (the
"Insurer"), pursuant to which the Insurer has unconditionally guaranteed payment
of the Note Interest Distributable Amount and the Note Principal Distributable
Amount on each Distribution Date, all as more fully set forth in the Indenture.

        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
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.

                                      C-2
<PAGE>
        IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed,
manually or in facsimile, by an Authorized Officer, as set forth below.

Date: November ___ , 2002              WFS FINANCIAL 2002-4 OWNER TRUST

                                       By:  CHASE MANHATTAN BANK USA, NATIONAL
                                            ASSOCIATION,
                                            not in its individual capacity but
                                            solely on behalf of the Issuer as
                                            Owner Trustee, under the Trust
                                            Agreement

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

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

        This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

                                       DEUTSCHE BANK TRUST COMPANY AMERICAS,
                                       not in its individual capacity but solely
                                       as Trustee

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

                                      C-3
<PAGE>
                           [REVERSE OF CLASS A-1 NOTE]

        This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its 1.67625% Class A-1 Notes (the "Class A-1 Notes"), all issued
under an Indenture, dated as of November 1, 2002 (the "Indenture"), between the
Issuer and Deutsche Bank Trust Company Americas, as trustee (the "Trustee"), to
which Indenture and all indentures supplemental thereto reference is hereby made
for a statement of the respective rights and obligations thereunder of the
Issuer, the Insurer, the Trustee and the Holders of the Notes. The Notes are
subject to all terms of the Indenture. All terms used in this Note that are
defined in the Indenture, as supplemented or amended, shall have the meanings
assigned to them in or pursuant to the Indenture, as so supplemented or amended.

        The Class A-1 Notes, the Class A-2 Notes, the Class A-3A Notes, the
Class A-3B Notes, the Class A-4A Notes and the Class A-4B Notes (collectively,
the "Notes") are and, except as otherwise provided in the Indenture and the Sale
and Servicing Agreement, will be equally and ratably secured by the collateral
pledged as security therefor as provided in the Indenture.

        Principal payable on the Class A-1 Notes will be paid on each
Distribution Date in the amount specified in the Indenture and in the Sale and
Servicing Agreement. As described above, the entire unpaid principal amount of
this Note will be payable on the earlier of the Class A-1 Final Scheduled
Distribution Date and the Redemption Date, if any, selected pursuant to the
Indenture. Notwithstanding the foregoing, under certain circumstances, the
entire unpaid principal amount of the Class A-1 Notes shall be due and payable
following the occurrence and continuance of an Event of Default, as described in
the Indenture. All principal payments on the Class A-1 Notes shall be made pro
rata to the Class A-1 Noteholders entitled thereto.

        Payments of principal and interest on this Note due and payable on each
Distribution Date or Redemption Date shall be made by check 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 the
related Record Date, except that with respect to Notes registered on the Record
Date in the name of the nominee of the Clearing Agency (initially, such nominee
to be Cede & Co.), payments will be made by wire transfer in immediately
available funds to the account designated by such nominee. Such checks 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) affected by
any payments made on any Distribution Date or Redemption 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 remaining unpaid principal amount of this
Note on a Distribution Date or Redemption Date, then the Trustee, in the name of
and on behalf of the Issuer, will notify the Person who was the registered
Holder hereof as of the Record Date preceding such Distribution Date or
Redemption Date by notice mailed within 20 days of such Distribution Date or
Redemption Date and the amount then due and payable shall be payable only upon
presentation and surrender of this Note at the Corporate Trust Office of the
Trustee or at the office of the Trustee's agent appointed for such purposes
located in The City of New York.

                                      C-4
<PAGE>
        As provided in the Indenture, the Notes may be redeemed pursuant to the
Indenture, in whole, but not in part, at the option of the Seller, on any
Distribution Date as of which the sum of the Principal Balances of the Contracts
is less than or equal to $135,000,000.

        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 Issuer pursuant to the Indenture. No service charge will be
charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay 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 Issuer, the Owner Trustee or the Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the 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 or employee of the Trustee or the Owner
Trustee in its individual capacity, any holder of a beneficial interest in the
Issuer, the Owner Trustee or the Trustee or of any successor or assign of the
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 by
accepting the benefits of the Indenture and such Note that such Noteholder or
Note Owner will not at any time institute against the Seller or the Issuer, or
join in any institution against the Seller or the Issuer of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings under any
United States Federal or state bankruptcy or similar law in connection with any
obligations relating to the Notes, the Indenture or the other Basic Documents.

        The Issuer 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 Issuer
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 federal, state and local income, single business and franchise tax
purposes as indebtedness of the Issuer.

        Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Trustee and the Insurer and any agent of the Issuer, the Trustee
or the Insurer 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 neither the Issuer, the Trustee nor any such agent shall be
affected by notice to the contrary.

                                      C-5
<PAGE>
        The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer with the consent of the Insurer and of the Holders of Notes
representing a majority of the Outstanding Amount of the Notes, voting together
as a single Class. 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
Issuer 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 of 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 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 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 California, and the obligations, rights and remedies of the
parties hereunder and thereunder shall be determined in accordance with such
laws, except that the duties of the Trustee under the Indenture shall be
governed by New York law.

        No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Issuer, 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.

                                      C-6
<PAGE>
                                                                       EXHIBIT D

                             FORM OF CLASS A-2 NOTE

        THIS NOTE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A-1 NOTES TO
THE EXTENT DESCRIBED IN THE INDENTURE REFERRED TO HEREIN.

        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.

        THIS SECURITY IS NOT A SAVINGS ACCOUNT OR DEPOSIT AND IT IS NOT INSURED
BY THE UNITED STATES OR ANY AGENCY OR FUND OF THE UNITED STATES.

        THE PRINCIPAL OF THIS NOTE IS PAYABLE IN FULL ON THE DATE 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.

                        WFS FINANCIAL 2002-4 OWNER TRUST

                             FLOATING RATE CLASS A-2

REGISTERED                                                          $280,000,000

No. R-A2                                                   CUSIP NO. 92926J AB 2

        WFS Financial 2002-4 Owner Trust, a statutory trust organized and
existing under the laws of the State of Delaware (the "Issuer"), for value
received, hereby promises to pay to Cede & Co., or registered assigns, the
principal sum of Two Hundred Eighty Million Dollars ($280,000,000), payable to
the extent described in the Indenture referred to on the reverse hereof on each
Distribution Date; provided, however, that the entire unpaid principal amount of
this Note shall be payable on the earlier of August 22, 2005 (the "Class A-2
Final Scheduled Distribution Date") and the Redemption Date, if any, selected
pursuant to the Indenture. No payments of principal of the Class A-2 Notes shall
be made until the principal amount of the Class A-1 Notes has been reduced to
zero.

        The Issuer will pay interest on this Note at the rate per annum equal to
the LIBOR Rate plus 0.11% (to the extent that such rate does not exceed the
maximum rate permitted by applicable law) on each Distribution Date until the
principal of this Note is paid or made

                                      D-1
<PAGE>
available for payment, on the principal amount of this Note outstanding on the
preceding Distribution Date (after giving effect to all payments of principal
made on the preceding Distribution Date), or on the Closing Date in the case of
the first Distribution Date, subject to certain limitations contained in the
Indenture. Interest on this Note will accrue for each Distribution Date from and
including the prior Distribution Date to but excluding the current Distribution
Date or, in the case of the first Distribution Date, from November 14, 2002. The
Issuer shall pay interest on overdue installments of interest at the Class A-2
Rate to the extent lawful. Interest will be computed on the basis of a 360-day
year and the actual number of days elapsed during the related Interest Period.
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 Issuer
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.

        The Notes are entitled to the benefits of a financial guaranty insurance
policy (the "Note Policy") issued by Financial Security Assurance Inc. (the
"Insurer"), pursuant to which the Insurer has unconditionally guaranteed payment
of the Note Interest Distributable Amount and the Note Principal Distributable
Amount on each Distribution Date, all as more fully set forth in the Indenture.

        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
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.

                                      D-2
<PAGE>
        IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed,
manually or in facsimile, by an Authorized Officer, as set forth below.

Date: November ___, 2002               WFS FINANCIAL 2002-4 OWNER TRUST

                                       By:  CHASE MANHATTAN BANK USA, NATIONAL
                                            ASSOCIATION,
                                            not in its individual capacity but
                                            solely on behalf of the Issuer as
                                            Owner Trustee, under the Trust
                                            Agreement

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

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

        This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

                                       DEUTSCHE BANK TRUST COMPANY AMERICAS,
                                       not in its individual capacity but solely
                                       as Trustee,

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

                                      D-3
<PAGE>
                           [REVERSE OF CLASS A-2 NOTE]

        This Note is one of a duly authorized issue of Notes of the Issuer,
designated as Floating Rate Class A-2 Notes (the "Class A-2 Notes"), all issued
under an Indenture, dated as of November 1, 2002 (the "Indenture"), between the
Issuer and Deutsche Bank Trust Company Americas, as trustee (the "Trustee"), to
which Indenture and all indentures supplemental thereto reference is hereby made
for a statement of the respective rights and obligations thereunder of the
Issuer, the Insurer, the Trustee and the Holders of the Notes. The Notes are
subject to all terms of the Indenture. All terms used in this Note that are
defined in the Indenture, as supplemented or amended, shall have the meanings
assigned to them in or pursuant to the Indenture, as so supplemented or amended.

        The Class A-1 Notes, the Class A-2 Notes, the Class A-3A Notes, the
Class A-3B Notes, the Class A-4A Notes and the Class A-4B Notes (collectively,
the "Notes") are and, except as otherwise provided in the Indenture and the Sale
and Servicing Agreement, will be equally and ratably secured by the collateral
pledged as security therefor as provided in the Indenture.

        Principal payable on the Class A-2 Notes will be paid on each
Distribution Date in the amount specified in the Indenture and in the Sale and
Servicing Agreement. As described above, the entire unpaid principal amount of
this Note will be payable on the earlier of the Class A-2 Final Scheduled
Distribution Date and the Redemption Date, if any, selected pursuant to the
Indenture. Notwithstanding the foregoing, under certain circumstances, the
entire unpaid principal amount of the Class A-2 Notes shall be due and payable
following the occurrence and continuance of an Event of Default, as described in
the Indenture. All principal payments on the Class A-2 Notes shall be made pro
rata to the Class A-2 Noteholders entitled thereto.

        Payments of principal and interest on this Note due and payable on each
Distribution Date or Redemption Date shall be made by check 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 the
related Record Date, except that with respect to Notes registered on the Record
Date in the name of the nominee of the Clearing Agency (initially, such nominee
to be Cede & Co.), payments will be made by wire transfer in immediately
available funds to the account designated by such nominee. Such checks 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) affected by
any payments made on any Distribution Date or Redemption 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 remaining unpaid principal amount of this
Note on a Distribution Date or Redemption Date, then the Trustee, in the name of
and on behalf of the Issuer, will notify the Person who was the registered
Holder hereof as of the Record Date preceding such Distribution Date or
Redemption Date by notice mailed within 20 days of such Distribution Date or
Redemption Date and the amount then due and payable shall be payable only upon
presentation and surrender of this Note at the Corporate Trust Office of the
Trustee or at the office of the Trustee's agent appointed for such purposes
located in The City of New York.

                                      D-4
<PAGE>
        As provided in the Indenture, the Notes may be redeemed pursuant to the
Indenture, in whole, but not in part, at the option of the Seller, on any
Distribution Date as of which the sum of the Principal Balances of the Contracts
is less than or equal to $135,000,000.

        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 Issuer pursuant to the Indenture. No service charge will be
charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay 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 Issuer, the Owner Trustee or the Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the 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 or employee of the Trustee or the Owner
Trustee in its individual capacity, any holder of a beneficial interest in the
Issuer, the Owner Trustee or the Trustee or of any successor or assign of the
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 by
accepting the benefits of the Indenture and such Note that such Noteholder or
Note Owner will not at any time institute against the Seller or the Issuer, or
join in any institution against the Seller or the Issuer of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings under any
United States Federal or state bankruptcy or similar law in connection with any
obligations relating to the Notes, the Indenture or the other Basic Documents.

        The Issuer 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 Issuer
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 federal, state and local income, single business and franchise tax
purposes as indebtedness of the Issuer.

        Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Trustee and the Insurer and any agent of the Issuer, the Trustee
or the Insurer 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 neither the Issuer, the Trustee nor any such agent shall be
affected by notice to the contrary.

                                      D-5
<PAGE>
        The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer with the consent of the Insurer and of the Holders of Notes
representing a majority of the Outstanding Amount of the Notes, voting together
as single class. 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
Issuer 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 of 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 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 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 California, and the obligations, rights and remedies of the
parties hereunder and thereunder shall be determined in accordance with such
laws, except that the duties of the Trustee under the Indenture shall be
governed by New York law.

        No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Issuer, 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.

                                      D-6
<PAGE>
                                                                       EXHIBIT E

                            FORM OF CLASS A-3A NOTES

        THIS NOTE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A-1 AND THE
CLASS A-2 NOTES TO THE EXTENT DESCRIBED IN THE INDENTURE REFERRED TO HEREIN.

        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.

        THIS SECURITY IS NOT A SAVINGS ACCOUNT OR DEPOSIT AND IT IS NOT INSURED
BY THE UNITED STATES OR ANY AGENCY OR FUND OF THE UNITED STATES.

        THE PRINCIPAL OF THIS NOTE IS PAYABLE IN FULL ON THE DATE 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.

                        WFS FINANCIAL 2002-4 OWNER TRUST

                             2.39% CLASS A-3A NOTES

REGISTERED                                                          $325,000,000

No. R-A3A                                                  CUSIP NO. 92926J AC 0

        WFS Financial 2002-4 Owner Trust, a statutory trust organized and
existing under the laws of the State of Delaware (the "Issuer"), for value
received, hereby promises to pay to Cede & Co., or registered assigns, the
principal sum of Three Hundred Twenty Five Million Dollars ($325,000,000),
payable to the extent described in the Indenture referred to on the reverse
hereof on each Distribution Date; provided, however, that the entire unpaid
principal amount of this Note shall be payable on the earlier of August 20, 2007
(the "Class A-3 Final Scheduled Distribution Date") and the Redemption Date, if
any, selected pursuant to the Indenture. No payments of principal of the Class
A-3A Notes shall be made until the principal amount of the Class A-1 Notes and
the Class A-2 Notes has been reduced to zero.

        The Issuer will pay interest on this Note at the rate per annum shown
above on each Distribution Date until the principal of this Note is paid or made
available for payment, on the

                                      E-1
<PAGE>
principal amount of this Note outstanding on the preceding Distribution Date
(after giving effect to all payments of principal made on the preceding
Distribution Date), or on the Closing Date in the case of the first Distribution
Date, subject to certain limitations contained in the Indenture. Interest on
this Note will accrue for each Distribution Date from and including 20th day of
the month of the prior Distribution Date to but excluding the 20th day of the
month of the current Distribution Date or, in the case of the first Distribution
Date, from November 14, 2002. The Issuer shall pay interest on overdue
installments of interest at the Class A-3A Rate to the extent lawful. Interest
will be computed on the basis of a 360-day year consisting of twelve 30-day
months. 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 Issuer
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.

        The Notes are entitled to the benefits of a financial guaranty insurance
policy (the "Note Policy") issued by Financial Security Assurance Inc. (the
"Insurer"), pursuant to which the Insurer has unconditionally guaranteed payment
of the Note Interest Distributable Amount and the Note Principal Distributable
Amount on each Distribution Date, all as more fully set forth in the Indenture.

        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
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.

                                      E-2
<PAGE>
        IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed,
manually or in facsimile, by an Authorized Officer, as set forth below.

Date: November ___, 2002               WFS FINANCIAL 2002-4 OWNER TRUST

                                       By:  CHASE MANHATTAN BANK USA, NATIONAL
                                            ASSOCIATION,
                                            not in its individual capacity but
                                            solely on behalf of the Issuer as
                                            Owner Trustee, under the Trust
                                            Agreement

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

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

        This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

                                       DEUTSCHE BANK TRUST COMPANY AMERICAS,
                                       not in its individual capacity but solely
                                       as Trustee,

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

                                      E-3
<PAGE>
                          [REVERSE OF CLASS A-3A NOTE]

        This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its 2.39% Class A-3A Notes (the "Class A-3A Notes"), all issued
under an Indenture, dated as of November 1, 2002 (the "Indenture"), between the
Issuer and Deutsche Bank Trust Company Americas, as trustee (the "Trustee"), to
which Indenture and all indentures supplemental thereto reference is hereby made
for a statement of the respective rights and obligations thereunder of the
Issuer, the Insurer, the Trustee and the Holders of the Notes. The Notes are
subject to all terms of the Indenture. All terms used in this Note that are
defined in the Indenture, as supplemented or amended, shall have the meanings
assigned to them in or pursuant to the Indenture, as so supplemented or amended.

        The Class A-1 Notes, the Class A-2 Notes, the Class A-3A Notes, the
Class A-3B Notes, the Class A-4A Notes and the Class A-4B Notes (collectively,
the "Notes") are and, except as otherwise provided in the Indenture and the Sale
and Servicing Agreement, will be equally and ratably secured by the collateral
pledged as security therefor as provided in the Indenture.

        Principal payable on the Class A-3A Notes will be paid on each
Distribution Date in the amount specified in the Indenture and in the Sale and
Servicing Agreement. As described above, the entire unpaid principal amount of
this Note will be payable on the earlier of the Class A-3 Final Scheduled
Distribution Date and the Redemption Date, if any, selected pursuant to the
Indenture. Notwithstanding the foregoing, under certain circumstances, the
entire unpaid principal amount of the Class A-3A Notes shall be due and payable
following the occurrence and continuance of an Event of Default, as described in
the Indenture. All principal payments on the Class A-3A Notes shall be made pro
rata to the Class A-3A Noteholders entitled thereto.

        Payments of principal and interest on this Note due and payable on each
Distribution Date or Redemption Date shall be made by check 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 the
related Record Date, except that with respect to Notes registered on the Record
Date in the name of the nominee of the Clearing Agency (initially, such nominee
to be Cede & Co.), payments will be made by wire transfer in immediately
available funds to the account designated by such nominee. Such checks 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) affected by
any payments made on any Distribution Date or Redemption 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 remaining unpaid principal amount of this
Note on a Distribution Date or Redemption Date, then the Trustee, in the name of
and on behalf of the Issuer, will notify the Person who was the registered
Holder hereof as of the Record Date preceding such Distribution Date or
Redemption Date by notice mailed within 20 days of such Distribution Date or
Redemption Date and the amount then due and payable shall be payable only upon
presentation and surrender of this Note at the Corporate Trust Office of the
Trustee or at the office of the Trustee's agent appointed for such purposes
located in The City of New York.

                                      E-4
<PAGE>
        As provided in the Indenture, the Notes may be redeemed pursuant to the
Indenture, in whole, but not in part, at the option of the Seller, on any
Distribution Date as of which the sum of the Principal Balances of the Contracts
is less than or equal to $135,000,000.

        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 Issuer pursuant to the Indenture. No service charge will be
charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay 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 Issuer, the Owner Trustee or the Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the 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 or employee of the Trustee or the Owner
Trustee in its individual capacity, any holder of a beneficial interest in the
Issuer, the Owner Trustee or the Trustee or of any successor or assign of the
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 by
accepting the benefits of the Indenture and such Note that such Noteholder or
Note Owner will not at any time institute against the Seller or the Issuer, or
join in any institution against the Seller or the Issuer of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings under any
United States Federal or state bankruptcy or similar law in connection with any
obligations relating to the Notes, the Indenture or the other Basic Documents.

        The Issuer 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 Issuer
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 federal, state and local income, single business and franchise tax
purposes as indebtedness of the Issuer.

        Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Trustee and the Insurer and any agent of the Issuer, the Trustee
or the Insurer 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 neither the Issuer, the Trustee nor any such agent shall be
affected by notice to the contrary.

                                      E-5
<PAGE>
        The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer with the consent of the Insurer and of the Holders of Notes
representing a majority of the Outstanding Amount of the Notes, voting together
as a single Class. 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
Issuer 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 of 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 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 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 California, and the obligations, rights and remedies of the
parties hereunder and thereunder shall be determined in accordance with such
laws, except that the duties of the Trustee under the Indenture shall be
governed by New York law.

        No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Issuer, 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.

                                      E-6
<PAGE>
                                                                       EXHIBIT F
                            FORM OF CLASS A-3B NOTES

        THIS NOTE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A-1 AND THE
CLASS A-2 NOTES TO THE EXTENT DESCRIBED IN THE INDENTURE REFERRED TO HEREIN.

        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.

        THIS SECURITY IS NOT A SAVINGS ACCOUNT OR DEPOSIT AND IT IS NOT INSURED
BY THE UNITED STATES OR ANY AGENCY OR FUND OF THE UNITED STATES.

        THE PRINCIPAL OF THIS NOTE IS PAYABLE IN FULL ON THE DATE 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.

                        WFS FINANCIAL 2002-4 OWNER TRUST

                         FLOATING RATE CLASS A-3B NOTES

REGISTERED                                                          $175,000,000

No. R-A3B                                                  CUSIP NO. 92926J AD 8

        WFS Financial 2002-4 Owner Trust, a statutory trust organized and
existing under the laws of the State of Delaware (the "Issuer"), for value
received, hereby promises to pay to Cede & Co., or registered assigns, the
principal sum of One Hundred Seventy Five Million Dollars ($175,000,000),
payable to the extent described in the Indenture referred to on the reverse
hereof on each Distribution Date; provided, however, that the entire unpaid
principal amount of this Note shall be payable on the earlier of August 20, 2007
(the "Class A-3 Final Scheduled Distribution Date") and the Redemption Date, if
any, selected pursuant to the Indenture. No payments of principal of the Class
A-3B Notes shall be made until the principal amount of the Class A-1 Notes and
the Class A-2 Notes has been reduced to zero.

        The Issuer will pay interest on this Note at the rate per annum equal to
the LIBOR Rate plus 0.17% (to the extent that such rate does not exceed the
maximum rate permitted by

                                      F-1
<PAGE>
applicable law) on each Distribution Date until the principal of this Note is
paid or made available for payment, on the principal amount of this Note
outstanding on the preceding Distribution Date (after giving effect to all
payments of principal made on the preceding Distribution Date), or on the
Closing Date in the case of the first Distribution Date, subject to certain
limitations contained in the Indenture. Interest on this Note will accrue for
each Distribution Date from and including the prior Distribution Date to but
excluding the current Distribution Date or, in the case of the first
Distribution Date, from November 14, 2002. The Issuer shall pay interest on
overdue installments of interest at the Class A-3B Rate to the extent lawful.
Interest will be computed on the basis of a 360-day year and the actual number
of days elapsed during the related Interest Period. 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 Issuer
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.

        The Notes are entitled to the benefits of a financial guaranty insurance
policy (the "Note Policy") issued by Financial Security Assurance Inc. (the
"Insurer"), pursuant to which the Insurer has unconditionally guaranteed payment
of the Note Interest Distributable Amount and the Note Principal Distributable
Amount on each Distribution Date, all as more fully set forth in the Indenture.

        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
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.

                                      F-2
<PAGE>
        IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed,
manually or in facsimile, by an Authorized Officer, as set forth below.

Date: November ___, 2002               WFS FINANCIAL 2002-4 OWNER TRUST

                                       By:  CHASE MANHATTAN BANK USA, NATIONAL
                                            ASSOCIATION,
                                            not in its individual capacity but
                                            solely on behalf of the Issuer as
                                            Owner Trustee, under the Trust
                                            Agreement

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

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

        This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

                                       DEUTSCHE BANK TRUST COMPANY AMERICAS,
                                       not in its individual capacity but solely
                                       as Trustee,

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

                                      F-3
<PAGE>
                          [REVERSE OF CLASS A-3B NOTE]

        This Note is one of a duly authorized issue of Notes of the Issuer,
designated as Floating Rate Class A-3B Notes (the "Class A-3B Notes"), all
issued under an Indenture, dated as of November 1, 2002 (the "Indenture"),
between the Issuer and Deutsche Bank Trust Company Americas, as trustee (the
"Trustee"), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights and obligations
thereunder of the Issuer, the Insurer, the Trustee and the Holders of the Notes.
The Notes are subject to all terms of the Indenture. All terms used in this Note
that are defined in the Indenture, as supplemented or amended, shall have the
meanings assigned to them in or pursuant to the Indenture, as so supplemented or
amended.

        The Class A-1 Notes, the Class A-2 Notes, the Class A-3A Notes, the
Class A-3B Notes, the Class A-4A Notes and the Class A-4B Notes (collectively,
the "Notes") are and, except as otherwise provided in the Indenture and the Sale
and Servicing Agreement, will be equally and ratably secured by the collateral
pledged as security therefor as provided in the Indenture.

        Principal payable on the Class A-3B Notes will be paid on each
Distribution Date in the amount specified in the Indenture and in the Sale and
Servicing Agreement. As described above, the entire unpaid principal amount of
this Note will be payable on the earlier of the Class A-3 Final Scheduled
Distribution Date and the Redemption Date, if any, selected pursuant to the
Indenture. Notwithstanding the foregoing, under certain circumstances, the
entire unpaid principal amount of the Class A-3B Notes shall be due and payable
following the occurrence and continuance of an Event of Default, as described in
the Indenture. All principal payments on the Class A-3B Notes shall be made pro
rata to the Class A-3B Noteholders entitled thereto.

        Payments of principal and interest on this Note due and payable on each
Distribution Date or Redemption Date shall be made by check 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 the
related Record Date, except that with respect to Notes registered on the Record
Date in the name of the nominee of the Clearing Agency (initially, such nominee
to be Cede & Co.), payments will be made by wire transfer in immediately
available funds to the account designated by such nominee. Such checks 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) affected by
any payments made on any Distribution Date or Redemption 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 remaining unpaid principal amount of this
Note on a Distribution Date or Redemption Date, then the Trustee, in the name of
and on behalf of the Issuer, will notify the Person who was the registered
Holder hereof as of the Record Date preceding such Distribution Date or
Redemption Date by notice mailed within 20 days of such Distribution Date or
Redemption Date and the amount then due and payable shall be payable only upon
presentation and surrender of this Note at the Corporate Trust Office of the
Trustee or at the office of the Trustee's agent appointed for such purposes
located in The City of New York.

                                      F-4
<PAGE>
        As provided in the Indenture, the Notes may be redeemed pursuant to the
Indenture, in whole, but not in part, at the option of the Seller, on any
Distribution Date as of which the sum of the Principal Balances of the Contracts
is less than or equal to $135,000,000.

        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 Issuer pursuant to the Indenture. No service charge will be
charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay 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 Issuer, the Owner Trustee or the Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the 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 or employee of the Trustee or the Owner
Trustee in its individual capacity, any holder of a beneficial interest in the
Issuer, the Owner Trustee or the Trustee or of any successor or assign of the
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 by
accepting the benefits of the Indenture and such Note that such Noteholder or
Note Owner will not at any time institute against the Seller or the Issuer, or
join in any institution against the Seller or the Issuer of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings under any
United States Federal or state bankruptcy or similar law in connection with any
obligations relating to the Notes, the Indenture or the other Basic Documents.

        The Issuer 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 Issuer
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 federal, state and local income, single business and franchise tax
purposes as indebtedness of the Issuer.

        Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Trustee and the Insurer and any agent of the Issuer, the Trustee
or the Insurer 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 neither the Issuer, the Trustee nor any such agent shall be
affected by notice to the contrary.

                                      F-5
<PAGE>
        The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer with the consent of the Insurer and of the Holders of Notes
representing a majority of the Outstanding Amount of the Notes, voting together
as a single Class. 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
Issuer 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 of 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 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 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 California, and the obligations, rights and remedies of the
parties hereunder and thereunder shall be determined in accordance with such
laws, except that the duties of the Trustee under the Indenture shall be
governed by New York law.

        No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Issuer, 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.

                                      F-6
<PAGE>
                                                                       EXHIBIT G

                            FORM OF CLASS A-4A NOTES

        THIS NOTE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A-1 NOTES,
THE CLASS A-2 NOTES, THE CLASS A-3A NOTES AND THE CLASS A-3B NOTES TO THE EXTENT
DESCRIBED IN THE INDENTURE REFERRED TO HEREIN.

        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.

        THIS SECURITY IS NOT A SAVINGS ACCOUNT OR DEPOSIT AND IT IS NOT INSURED
BY THE UNITED STATES OR ANY AGENCY OR FUND OF THE UNITED STATES.

        THE PRINCIPAL OF THIS NOTE IS PAYABLE IN FULL ON THE DATE 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.

                        WFS FINANCIAL 2002-4 OWNER TRUST

                              3.11% CLASS A-4A NOTE

REGISTERED                                                          $163,000,000

No. R-4A                                                   CUSIP NO. 92926J AE 6

        WFS Financial 2002-4 Owner Trust, a statutory trust organized and
existing under the laws of the State of Delaware (the "Issuer"), for value
received, hereby promises to pay to Cede & Co., or registered assigns, the
principal sum of One Hundred Sixty Three Million Dollars ($163,000,000), payable
to the extent described in the Indenture referred to on the reverse hereof on
each Distribution Date; provided, however, that the entire unpaid principal
amount of this Note shall be payable on the earlier of August 20, 2010 (the
"Class A-4 Final Scheduled Distribution Date") and the Redemption Date, if any,
selected pursuant to the Indenture. No payments of principal of the Class A-4A
Notes shall be made until the principal amount of the Class A-1 Notes, the Class
A-2 Notes, the Class A-3A Notes and the Class A-3B Notes has been reduced to
zero.

                                      G-1
<PAGE>
        The Issuer will pay interest on this Note at the rate per annum shown
above on each Distribution Date until the principal of this Note is paid or made
available for payment, on the principal amount of this Note outstanding on the
preceding Distribution Date (after giving effect to all payments of principal
made on the preceding Distribution Date), or on the Closing Date in the case of
the first Distribution Date, subject to certain limitations contained in the
Indenture. Interest on this Note will accrue for each Distribution Date from and
including the 20th day of the month of the prior Distribution Date to but
excluding the 20th day of the month of the current Distribution Date or, in the
case of the first Distribution Date, from November 14, 2002. The Issuer shall
pay interest on overdue installments of interest at the Class A-4A Rate to the
extent lawful. Interest will be computed on the basis of a 360-day year
consisting of twelve 30-day months. 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 Issuer
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.

        The Notes are entitled to the benefits of a financial guaranty insurance
policy (the "Note Policy") issued by Financial Security Assurance Inc. (the
"Insurer"), pursuant to which the Insurer has unconditionally guaranteed payment
of the Note Interest Distributable Amount and the Note Principal Distributable
Amount on each Distribution Date, all as more fully set forth in the Indenture.

        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
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.

                                      G-2
<PAGE>
        IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed,
manually or in facsimile, by an Authorized Officer, as set forth below.

Date: November ___, 2002               WFS FINANCIAL 2002-4 OWNER TRUST

                                       By:  CHASE MANHATTAN BANK USA, NATIONAL
                                            ASSOCIATION,
                                            not in its individual capacity but
                                            solely on behalf of the Issuer as
                                            Owner Trustee, under the Trust
                                            Agreement

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

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

        This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

                                       DEUTSCHE BANK TRUST COMPANY AMERICAS,
                                       not in its individual capacity but solely
                                       as Trustee

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

                                      G-3
<PAGE>
                          [REVERSE OF CLASS A-4A NOTE]

        This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its 3.11% Class A-4A Notes (the "Class A-4 Notes"), all issued
under an Indenture, dated as of November 1, 2002 (the "Indenture"), between the
Issuer and Deutsche Bank Trust Company Americas, as trustee (the "Trustee"), to
which Indenture and all indentures supplemental thereto reference is hereby made
for a statement of the respective rights and obligations thereunder of the
Issuer, the Insurer, the Trustee and the Holders of the Notes. The Notes are
subject to all terms of the Indenture. All terms used in this Note that are
defined in the Indenture, as supplemented or amended, shall have the meanings
assigned to them in or pursuant to the Indenture, as so supplemented or amended.

        The Class A-1 Notes, the Class A-2 Notes, the Class A-3A Notes, the
Class A-3B Notes, the Class A-4A Notes and the Class A-4B Notes (collectively,
the "Notes") are and, except as otherwise provided in the Indenture and the Sale
and Servicing Agreement, will be equally and ratably secured by the collateral
pledged as security therefor as provided in the Indenture.

        Principal payable on the Class A-4A Notes will be paid on each
Distribution Date in the amount specified in the Indenture and in the Sale and
Servicing Agreement. As described above, the entire unpaid principal amount of
this Note will be payable on the earlier of the Class A-4 Final Scheduled
Distribution Date and the Redemption Date, if any, selected pursuant to the
Indenture. Notwithstanding the foregoing, under certain circumstances, the
entire unpaid principal amount of the Class A-4A Notes shall be due and payable
following the occurrence and continuance of an Event of Default, as described in
the Indenture. All principal payments on the Class A-4A Notes shall be made pro
rata to the Class A-4A Noteholders entitled thereto.

        Payments of principal and interest on this Note due and payable on each
Distribution Date or Redemption Date shall be made by check 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 the
related Record Date, except that with respect to Notes registered on the Record
Date in the name of the nominee of the Clearing Agency (initially, such nominee
to be Cede & Co.), payments will be made by wire transfer in immediately
available funds to the account designated by such nominee. Such checks 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) affected by
any payments made on any Distribution Date or Redemption 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 remaining unpaid principal amount of this
Note on a Distribution Date or Redemption Date, then the Trustee, in the name of
and on behalf of the Issuer, will notify the Person who was the registered
Holder hereof as of the Record Date preceding such Distribution Date or
Redemption Date by notice mailed within 20 days of such Distribution Date or
Redemption Date and the amount then due and payable shall be payable only upon
presentation and surrender of this Note at the Corporate Trust Office of the
Trustee or at the office of the Trustee's agent appointed for such purposes
located in The City of New York.

                                      G-4
<PAGE>
        As provided in the Indenture, the Notes may be redeemed pursuant to the
Indenture, in whole, but not in part, at the option of the Seller, on any
Distribution Date as of which the sum of the Principal Balances of the Contracts
is less than or equal to $135,000,000.

        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 Issuer pursuant to the Indenture. No service charge will be
charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay 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 Issuer, the Owner Trustee or the Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the 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 or employee of the Trustee or the Owner
Trustee in its individual capacity, any holder of a beneficial interest in the
Issuer, the Owner Trustee or the Trustee or of any successor or assign of the
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 by
accepting the benefits of the Indenture and such Note that such Noteholder or
Note Owner will not at any time institute against the Seller or the Issuer, or
join in any institution against the Seller or the Issuer of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings under any
United States Federal or state bankruptcy or similar law in connection with any
obligations relating to the Notes, the Indenture or the other Basic Documents.

        The Issuer 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 Issuer
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 federal, state and local income, single business and franchise tax
purposes as indebtedness of the Issuer.

        Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Trustee and the Insurer and any agent of the Issuer, the Trustee
or the Insurer 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 neither the Issuer, the Trustee nor any such agent shall be
affected by notice to the contrary.

                                      G-5
<PAGE>
        The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer with the consent of the Insurer and of the Holders of Notes
representing a majority of the Outstanding Amount of the Notes, voting together
as single class. 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
Issuer 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 of 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 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 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 California, and the obligations, rights and remedies of the
parties hereunder and thereunder shall be determined in accordance with such
laws, except that the duties of the Trustee under the Indenture shall be
governed by New York law.

        No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Issuer, 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.

                                      G-6
<PAGE>
                                                                       EXHIBIT H
                            FORM OF CLASS A-4B NOTES

        THIS NOTE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A-1, THE
CLASS A-2 NOTES, THE CLASS A-3A AND THE CLASS A-3B NOTES TO THE EXTENT DESCRIBED
IN THE INDENTURE REFERRED TO HEREIN.

        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.

        THIS SECURITY IS NOT A SAVINGS ACCOUNT OR DEPOSIT AND IT IS NOT INSURED
BY THE UNITED STATES OR ANY AGENCY OR FUND OF THE UNITED STATES.

        THE PRINCIPAL OF THIS NOTE IS PAYABLE IN FULL ON THE DATE 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.

                        WFS FINANCIAL 2002-4 OWNER TRUST

                         FLOATING RATE CLASS A-4B NOTES

REGISTERED                                                          $162,000,000

No. R-A4B                                                  CUSIP NO. 92926J AF 3

        WFS Financial 2002-4 Owner Trust, a statutory trust organized and
existing under the laws of the State of Delaware (the "Issuer"), for value
received, hereby promises to pay to Cede & Co., or registered assigns, the
principal sum of One Hundred Sixty Two Million Dollars ($162,000,000), payable
to the extent described in the Indenture referred to on the reverse hereof on
each Distribution Date; provided, however, that the entire unpaid principal
amount of this Note shall be payable on the earlier of August 20, 2010 (the
"Class A-4 Final Scheduled Distribution Date") and the Redemption Date, if any,
selected pursuant to the Indenture. No payments of principal of the Class A-4B
Notes shall be made until the principal amount of the Class A-1 Notes, Class A-2
Notes, Class A-3A Notes and the Class A-3B Notes has been reduced to zero.

                                      H-1
<PAGE>
        The Issuer will pay interest on this Note at the rate per annum equal to
the LIBOR Rate plus 0.28% (to the extent that such rate does not exceed the
maximum rate permitted by applicable law) on each Distribution Date until the
principal of this Note is paid or made available for payment, on the principal
amount of this Note outstanding on the preceding Distribution Date (after giving
effect to all payments of principal made on the preceding Distribution Date), or
on the Closing Date in the case of the first Distribution Date, subject to
certain limitations contained in the Indenture. Interest on this Note will
accrue for each Distribution Date from and including the prior Distribution Date
to but excluding the current Distribution Date or, in the case of the first
Distribution Date, from November 14, 2002. The Issuer shall pay interest on
overdue installments of interest at the Class A-4B Rate to the extent lawful.
Interest will be computed on the basis of a 360-day year and the actual number
of days elapsed during the related Interest Period. 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 Issuer
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.

        The Notes are entitled to the benefits of a financial guaranty insurance
policy (the "Note Policy") issued by Financial Security Assurance Inc. (the
"Insurer"), pursuant to which the Insurer has unconditionally guaranteed payment
of the Note Interest Distributable Amount and the Note Principal Distributable
Amount on each Distribution Date, all as more fully set forth in the Indenture.

        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
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.

                                      H-2
<PAGE>
        IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed,
manually or in facsimile, by an Authorized Officer, as set forth below.

Date: November ___, 2002               WFS FINANCIAL 2002-4 OWNER TRUST

                                       By:  CHASE MANHATTAN BANK USA, NATIONAL
                                            ASSOCIATION,
                                            not in its individual capacity but
                                            solely on behalf of the Issuer as
                                            Owner Trustee, under the Trust
                                            Agreement

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

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

        This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

                                       DEUTSCHE BANK TRUST COMPANY AMERICAS,
                                       not in its individual capacity but solely
                                       as Trustee,

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

                                      H-3
<PAGE>
                          [REVERSE OF CLASS A-4B NOTE]

        This Note is one of a duly authorized issue of Notes of the Issuer,
designated as Floating Rate Class A-4B Notes (the "Class A-4B Notes"), all
issued under an Indenture, dated as of November 1, 2002 (the "Indenture"),
between the Issuer and Deutsche Bank Trust Company Americas, as trustee (the
"Trustee"), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights and obligations
thereunder of the Issuer, the Insurer, the Trustee and the Holders of the Notes.
The Notes are subject to all terms of the Indenture. All terms used in this Note
that are defined in the Indenture, as supplemented or amended, shall have the
meanings assigned to them in or pursuant to the Indenture, as so supplemented or
amended.

        The Class A-1 Notes, the Class A-2 Notes, the Class A-3A Notes, the
Class A-3B Notes, the Class A-4A Notes and the Class A-4B Notes (collectively,
the "Notes") are and, except as otherwise provided in the Indenture and the Sale
and Servicing Agreement, will be equally and ratably secured by the collateral
pledged as security therefor as provided in the Indenture.

        Principal payable on the Class A-4B Notes will be paid on each
Distribution Date in the amount specified in the Indenture and in the Sale and
Servicing Agreement. As described above, the entire unpaid principal amount of
this Note will be payable on the earlier of the Class A-4 Final Scheduled
Distribution Date and the Redemption Date, if any, selected pursuant to the
Indenture. Notwithstanding the foregoing, under certain circumstances, the
entire unpaid principal amount of the Class A-4B Notes shall be due and payable
following the occurrence and continuance of an Event of Default, as described in
the Indenture. All principal payments on the Class A-4B Notes shall be made pro
rata to the Class A-4B Noteholders entitled thereto.

        Payments of principal and interest on this Note due and payable on each
Distribution Date or Redemption Date shall be made by check 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 the
related Record Date, except that with respect to Notes registered on the Record
Date in the name of the nominee of the Clearing Agency (initially, such nominee
to be Cede & Co.), payments will be made by wire transfer in immediately
available funds to the account designated by such nominee. Such checks 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) affected by
any payments made on any Distribution Date or Redemption 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 remaining unpaid principal amount of this
Note on a Distribution Date or Redemption Date, then the Trustee, in the name of
and on behalf of the Issuer, will notify the Person who was the registered
Holder hereof as of the Record Date preceding such Distribution Date or
Redemption Date by notice mailed within 20 days of such Distribution Date or
Redemption Date and the amount then due and payable shall be payable only upon
presentation and surrender of this Note at the Corporate Trust Office of the
Trustee or at the office of the Trustee's agent appointed for such purposes
located in The City of New York.

                                      H-4
<PAGE>
        As provided in the Indenture, the Notes may be redeemed pursuant to the
Indenture, in whole, but not in part, at the option of the Seller, on any
Distribution Date as of which the sum of the Principal Balances of the Contracts
is less than or equal to $135,000,000.

        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 Issuer pursuant to the Indenture. No service charge will be
charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay 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 Issuer, the Owner Trustee or the Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the 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 or employee of the Trustee or the Owner
Trustee in its individual capacity, any holder of a beneficial interest in the
Issuer, the Owner Trustee or the Trustee or of any successor or assign of the
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 by
accepting the benefits of the Indenture and such Note that such Noteholder or
Note Owner will not at any time institute against the Seller or the Issuer, or
join in any institution against the Seller or the Issuer of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings under any
United States Federal or state bankruptcy or similar law in connection with any
obligations relating to the Notes, the Indenture or the other Basic Documents.

        The Issuer 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 Issuer
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 federal, state and local income, single business and franchise tax
purposes as indebtedness of the Issuer.

        Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Trustee and the Insurer and any agent of the Issuer, the Trustee
or the Insurer 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 neither the Issuer, the Trustee nor any such agent shall be
affected by notice to the contrary.

                                      H-5
<PAGE>
        The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer with the consent of the Insurer and of the Holders of Notes
representing a majority of the Outstanding Amount of the Notes, voting together
as a single Class. 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
Issuer 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 of 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 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 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 California, and the obligations, rights and remedies of the
parties hereunder and thereunder shall be determined in accordance with such
laws, except that the duties of the Trustee under the Indenture shall be
governed by New York law.

        No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Issuer, 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.

                                      H-6
<PAGE>
                                                                       EXHIBIT I

                             FORM OF NOTE ASSIGNMENT

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

PLEASE INSERT SOCIAL SECURITY OR
OTHER IDENTIFYING NUMBER OF ASSIGNEE

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

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

--------------------------------------------------------------------------------
to transfer said Note on the books kept for registration thereof, with full
power of substitution in the premises.

Dated:
       --------------------

Signature Guaranteed By:

----------------------------------          ------------------------------------
Signature must be guaranteed by an          Notice: The signature(s) on this
eligible guarantor institution              assignment must correspond with the
which is a participant in the               name(s) as it appears on the face
Securities Transfer Agent's                 of the within Note in every
Medallion Program (STAMP) or                particular, without alteration,
similar signature guarantee                 enlargement, or any change
program.                                    whatsoever.

----------------------------------
   (Authorized Officer)

                                       I-1
<PAGE>
                                                                       EXHIBIT J

                               FORM OF NOTE POLICY

                                      J-1<PAGE>

                                                                    EXHIBIT 10.2

                                                                  EXECUTION COPY

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

                          SALE AND SERVICING AGREEMENT

                                      among

                        WFS FINANCIAL 2002-4 OWNER TRUST,
                                   as Issuer,

                          WFS RECEIVABLES CORPORATION,
                                   as Seller,

                                       and

                               WFS FINANCIAL INC,
                               as Master Servicer

                          Dated as of November 1, 2002

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

                               TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                           Page
                                                                                           ----
                                   ARTICLE ONE

                                   DEFINITIONS

<S>                                                                                        <C>
Section 1.01.  Definitions...............................................................    2
Section 1.02.  Usage of Terms............................................................   23
Section 1.03.  Section References........................................................   23
Section 1.04.  Calculations..............................................................   23
Section 1.05.  Accounting Terms..........................................................   23

                                   ARTICLE TWO

                             CONVEYANCE OF CONTRACTS

Section 2.01.  Conveyance of Contracts...................................................   24

                                  ARTICLE THREE

                                  THE CONTRACTS

Section 3.01.  Representations and Warranties of the Seller..............................   26
Section 3.02.  Purchase of Certain Contracts.............................................   32
Section 3.03.  Custody of Contract Files.................................................   32
Section 3.04.  Duties of Master Servicer as Custodian....................................   33
Section 3.05.  Instructions; Authority to Act............................................   35
Section 3.06.  Indemnification...........................................................   35
Section 3.07.  Effective Period and Termination..........................................   35
Section 3.08.  Nonpetition Covenant......................................................   36
Section 3.09.  Collecting Title Documents Not Delivered at the Closing Date..............   36

                                  ARTICLE FOUR

                    ADMINISTRATION AND SERVICING OF CONTRACTS

Section 4.01.  Duties of Master Servicer.................................................   37
Section 4.02.  Collection of Contract Payments...........................................   40
Section 4.03.  Realization upon Defaulted Contracts and Liquidated Contracts.............   41
Section 4.04.  Insurance.................................................................   41
Section 4.05.  Maintenance of Security Interests in Financed Vehicles....................   42
Section 4.06.  Covenants, Representations and Warranties of the Master Servicer..........   42
Section 4.07.  Repurchase of Contracts upon Breach of Covenant...........................   44
Section 4.08.  Servicing Compensation....................................................   44
Section 4.09.  Reporting by the Master Servicer..........................................   44
</TABLE>

                                       i
<PAGE>

<TABLE>
<CAPTION>
                                                                                           Page
                                                                                           ----
<S>                                                                                        <C>
Section 4.10.  Annual Statement as to Compliance.........................................   47
Section 4.11.  Annual Independent Certified Public Accountants' Report...................   47
Section 4.12.  Access to Certain Documentation and Information Regarding Contracts.......   48
Section 4.13.  Fidelity Bond.............................................................   48
Section 4.14.  Indemnification; Third Party Claims.......................................   48
Section 4.15.  Maintenance of the Interest Rate Swap Agreement...........................   48

                                  ARTICLE FIVE

          DISTRIBUTIONS; SPREAD ACCOUNT; STATEMENTS TO SECURITYHOLDERS

Section 5.01.  Establishment of Trust Accounts...........................................   49
Section 5.02.  Collections; Realization Upon Note Policy; Net Deposits...................   51
Section 5.03.  Application of Collections................................................   52
Section 5.04.  Advances and Nonrecoverable Advances; Repurchase Amounts..................   52
Section 5.05.  Distributions.............................................................   53
Section 5.06.  Spread Account............................................................   54
Section 5.07.  Statements to Securityholders.............................................   55
Section 5.08.  Calculation of the Class A-2 Rate, Class A-3B Rate and Class A-4B Rate....   56

                                   ARTICLE SIX

                                   THE SELLER

Section 6.01.  Corporate Existence.......................................................   57
Section 6.02.  Liability of Seller; Indemnities..........................................   57
Section 6.03.  Merger or Consolidation of, or Assumption of the Obligations of, the
               Seller; Certain Limitations...............................................   58
Section 6.04.  Limitation on Liability of Seller and Others..............................   59
Section 6.05.  Seller Not to Resign......................................................   60
Section 6.06.  Seller May Own Securities.................................................   60

                                  ARTICLE SEVEN

                               THE MASTER SERVICER

Section 7.01.  Liability of Master Servicer; Indemnities.................................   61
Section 7.02.  Corporate Existence; Status as Master Servicer; Merger....................   62
Section 7.03.  Performance of Obligations................................................   62
Section 7.04.  Master Servicer Not to Resign; Assignment.................................   62
Section 7.05.  Limitation on Liability of Master Servicer and Others.....................   63
</TABLE>

                                       ii

<PAGE>

<TABLE>
<CAPTION>
                                                                                           Page
                                                                                           ----

                                  ARTICLE EIGHT

                                     DEFAULT
<S>                                                                                        <C>
Section 8.01.  Servicer Default..........................................................   65
Section 8.02.  Indenture Trustee to Act; Appointment of Successor........................   66
Section 8.03.  Repayment of Advances.....................................................   67
Section 8.04.  Notification to Noteholders and Certificateholders........................   67
Section 8.05.  Waiver of Past Defaults...................................................   67
Section 8.06.  Insurer Direction of Insolvency Proceedings...............................   68

                                  ARTICLE NINE

                                   TERMINATION

Section 9.01.  Optional Purchase of All Contracts........................................   69
Section 9.02.  Transfer to the Insurer...................................................   70

                                   ARTICLE TEN

                                  MISCELLANEOUS

Section 10.01.  Amendment................................................................   71
Section 10.02.  Protection of Title to Trust.............................................   72
Section 10.03.  Governing Law............................................................   74
Section 10.04.  Notices..................................................................   74
Section 10.05.  Severability of Provisions...............................................   74
Section 10.06.  Assignment...............................................................   74
Section 10.07.  Third Party Beneficiaries................................................   74
Section 10.08.  Insurer Default or Insolvency............................................   75
Section 10.09.  Counterparts.............................................................   75
Section 10.10.  Headings.................................................................   75
Section 10.11.  Assignment by Issuer.....................................................   75
Section 10.12.  Limitation of Liability of Owner Trustee.................................   75
Section 10.13.  Effect of Policy Expiration Date.........................................   75
Section 10.14.  Limitation on Recourse Against WFSRC.....................................   76
Section 10.15.  Replacement Interest Rate Swap Agreement.................................   76

</TABLE>

                                      iii
<PAGE>

<TABLE>
<CAPTION>
                                                                                           Page
                                                                                           ----

                                    SCHEDULES
<S>                                                                                        <C>
Schedule A     Schedule of Contracts...................................................    SA-1
Schedule B     Location of Contract Files..............................................    SB-1
Schedule C     Net Charge-Off Percentage Triggers......................................    SC-1

                                    EXHIBITS

Exhibit A      Form of Insurance Agreement.............................................    A-1
Exhibit B      Form of Note Policy.....................................................    B-1
Exhibit C      Form of RIC.............................................................    C-1
Exhibit D      Form of Distribution Date Statement.....................................    D-1

</TABLE>

                                       iv
<PAGE>

        This SALE AND SERVICING AGREEMENT, dated as of November 1, 2002, is
among WFS Financial 2002-4 Owner Trust, as issuer (the "Issuer"), WFS
Receivables Corporation, as seller (the "Seller"), and WFS Financial Inc
("WFS"), as master servicer (the "Master Servicer").

        WHEREAS, the Issuer desires to purchase from the Seller a portfolio of
receivables arising in connection with automobile retail installment sales
contracts and installment loans (collectively, the "Contracts") primarily
originated by motor vehicle dealers and purchased by WFS, which Contracts were
subsequently sold by WFS to the Seller;

        WHEREAS, the Seller is willing to sell the Contracts to the Issuer
pursuant to the
terms hereof; and

        WHEREAS, the Master Servicer is willing to service the Contracts
pursuant to the terms hereof.

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

<PAGE>

                                   ARTICLE ONE

                                   DEFINITIONS

        Section 1.01. Definitions.

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

        "Advance" means the aggregate amount, as of a Master Servicer Report
Date, that the Master Servicer is required to advance in respect of the
Contracts pursuant to Section 5.04(a).

        "Administrator" shall have the meaning specified in the Indenture.

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

        "Aggregate Net Liquidation Losses" means, with respect to any Due
Period, the aggregate of the amounts by which (i) the principal amount of each
Contract that became a Liquidated Contract pursuant to clause (ii) or (iv) of
the definition of the term "Liquidated Contract" during such Due Period plus
accrued and unpaid interest thereon (adjusted to the Net Contract Rate) to the
last Due Date in such Due Period exceeds (ii) the Net Liquidation Proceeds for
such Contract.

        "Aggregate Principal Balance" means, with respect to any date and the
Outstanding Contracts, the aggregate of the Principal Balances of such Contracts
as of such date.

        "Aggregate Repurchase Amount" means, with respect to the purchase of
Contracts pursuant to Section 9.01(a), an amount equal to the sum of the amounts
described in clauses (i) through (vi) of Section 9.01(e).

        "APR" of a Contract means annual percentage rate and is the annual rate
of finance charges specified in such Contract.

        "Assignments" means, collectively, (i) the original instrument of
assignment of a Contract and all other documents securing such Contract made by
the Seller to the Issuer (or in the case of any Contract acquired by the Seller
from another Person, from such other Person to the Seller and from the Seller to
the Issuer), and (ii) the original instrument granting a security interest in
such Contract and other documents made by the Issuer to the Insurer, which, in
the case of clause (i) above, is in a form sufficient under the laws of the
jurisdiction under which the security interest in the related Financed Vehicle
arises to permit the assignee to exercise all rights granted by the Obligor
under such Contract and such other documents and all rights available under
applicable law to the Obligee under such Contract and such other documents and,
in the case of clause (ii) above, is in a form sufficient under the laws of the
jurisdiction under which the

                                       2
<PAGE>

security interest in the related Financed Vehicle arises to permit the Insurer,
as a secured party, to exercise, upon default, all rights granted by the Obligor
under such Contract and such other documents and all rights available under
applicable law to the Obligee under such Contract and which, in the case of
either clause (i) or (ii) above, may, to the extent permitted by the laws of
such jurisdiction, be a blanket instrument of assignment covering other
Contracts as well and which may also, to the extent permitted by the laws of the
jurisdiction governing such Contract, be an instrument of assignment running
directly from the related Seller to the Issuer and the Insurer.

        "Bank" means Western Financial Bank, and its successors.

        "Basic Documents" shall have the meaning specified in the Indenture.

        "Business Day" means any day that is not a Saturday, Sunday or other day
on which banking institutions in Los Angeles, California, Newark, Delaware or
New York, New York are authorized or obligated by law, executive order or
government decree to remain closed.

        "Calculation Day" means the last day of each calendar month.

        "Certificate Distributable Amount" means the aggregate amount of the
Excess Spread Amount distributed to Certificateholders pursuant to Section
5.06(b).

        "Certificate Distribution Account" shall have the meaning specified in
the Trust Agreement.

        "Certificate Final Principal Distribution Date" means the August 2010
Distribution Date.

        "Certificate Percentage Interest" means, with respect to a Certificate,
the percentage specified on such Certificate as the Certificate Percentage
Interest, which percentage represents the beneficial interest of such
Certificate in the Issuer. The initial Certificate Percentage Interest held by
the Seller shall be 100%.

        "Certificate Register" shall have the meaning specified in the Trust
Agreement.

        "Certificate Registrar" shall have the meaning specified in the Trust
Agreement.

        "Certificateholders" shall have the meaning specified in the Trust
Agreement.

        "Certificates" means the Trust Certificates (as such term is defined in
the Trust Agreement).

        "Chapter 13 Bankruptcy Proceeding" means a bankruptcy proceeding under
Chapter 13 of Title 11 of the United States Code, as amended.

        "Chapter 13 Contract" means a Contract with respect to which the related
Obligor is subject to a Chapter 13 Bankruptcy Proceeding and is in compliance
with a Chapter 13 Plan of Reorganization.

                                       3
<PAGE>

        "Chapter 13 Plan of Reorganization" means a plan of reorganization (as
such plan may be modified with court approval) that has been approved by a court
with jurisdiction over an Obligor under a Contract in a Chapter 13 Bankruptcy
Proceeding.

        "Charge-Off Date" means, with respect to a Repossessed Vehicle Contract,
the earlier of (i) the date the related Repossessed Vehicle is sold and (ii) the
date 60 days (or longer if required by applicable law) from the date the related
Repossessed Vehicle is repossessed.

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

        "Class A-1 Final Scheduled Distribution Date" means the November 2003
Distribution Date.

        "Class A-1 Rate" means 1.67625% per annum.

        "Class A-2 Final Scheduled Distribution Date" means the August 2005
Distribution Date.

        "Class A-2 Rate" means the lesser of (i) the sum of (a) the LIBOR Rate
and (b) 0.11% per annum and (ii) the maximum rate permitted by applicable law.

        "Class A-3 Final Scheduled Distribution Date" means the August 2007
Distribution Date.

        "Class A-3A Rate" means 2.39% per annum.

        "Class A-3B Rate" means the lesser of (i) the sum of (a) the LIBOR Rate
and (b) 0.17% per annum and (ii) the maximum rate permitted by applicable law.

        "Class A-4 Final Scheduled Distribution Date" means the August 2010
Distribution Date.

        "Class A-4A Noteholder" means the Person in whose name a Class A-4A Note
is registered in the Note Register.

        "Class A-4A Rate" means 3.11% per annum.

        "Class A-4B Noteholder" means the Person in whose name a Class A-4B Note
is registered in the Note Register.

        "Class A-4B Rate" means the lesser of (i) the sum of (a) the LIBOR Rate
and (b) 0.28% per annum and (ii) the maximum rate permitted by applicable law.

        "Class Balance" means, with respect to any Class of Notes as of any
Distribution Date, the outstanding principal amount of such Class of Notes
(after giving effect to any reductions thereof to be made on such Distribution
Date).

        "Closing Date" means November 14, 2002.

        "Collateral Agent" means Deutsche Bank Trust Company Americas, in its
capacity as collateral agent for the Insurer under the Insurance Agreement, and
each successor thereto.

                                       4
<PAGE>

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

        "Commercial Paper" means commercial paper given the highest rating by
each Rating Agency at the time of such investment; provided that the issuer of
such commercial paper must have a long-term unsecured debt rating of at least
"Aaa" from Moody's and "AAA" from Standard & Poor's or have a short-term
unsecured debt rating of at least "Prime-1" from Moody's and "A-1+" from
Standard & Poor's.

        "Contract" means each retail installment sales contract and security
agreement or installment loan agreement and security agreement which has been
executed by an Obligor and pursuant to which such Obligor purchased, financed or
pledged the Financed Vehicle described therein, agreed to pay the deferred
purchase price (i.e., the purchase price net of any down payment) or amount
borrowed, together with interest, as therein provided in connection with such
purchase or loan, granted a security interest in such Financed Vehicle, and
undertook to perform certain other obligations as specified in such Contract and
which has been conveyed to the Issuer pursuant to this Agreement.

        "Contract Documents" means, with respect to each Contract, (i) the
Contract; (ii) either the original Title Document for the related Financed
Vehicle or a duplicate copy thereof issued or certified by the Registrar of
Titles which issued the original thereof, together with evidence of perfection
of the security interest in the related Financed Vehicle granted by such
Contract, as determined by the Master Servicer to be permitted or required to
perfect such security interest under the laws of the applicable jurisdiction
(or, in the case of a Contract listed on the Schedule of Contracts, written
evidence from the Dealer selling such Financed Vehicle that the Title Document
for such Financed Vehicle showing the Seller as first lienholder has been
applied for); (iii) the related Assignments; (iv) any agreement(s) modifying the
Contract (including, without limitation, any extension agreement(s)); and (v)
documents evidencing the existence of physical damage insurance covering such
Financed Vehicle.

        "Contract Files" means the Contract Documents and all other papers and
computerized records customarily kept by the Master Servicer and all
Subservicers, as the case may be, in servicing contracts and loans comparable to
the Contracts.

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

        "Contract Rate" means, with respect to a Contract, the interest rate
borne by such Contract.

        "Contracts" means the Contracts sold to the Issuer by the Seller.

        "Corporate Trust Office" means the principal office of the Indenture
Trustee at which at any particular time its corporate trust business shall be
administered, which office at the date of the execution of this Agreement is
located at 60 Wall Street, New York, New York 10005, Attention: Corporate Trust
& Agency Services -- Structured Finance Services; or at such other

                                       5
<PAGE>

address as the Indenture Trustee may designate from time to time by notice to
the Certificateholders, the Insurer, the Master Servicer and the Seller.

        "Cut-Off Date" means November 12, 2002.

        "Cut-Off Date Aggregate Principal Balance" means $1,350,000,000, the
aggregate of the Principal Balances of the Contracts as of the Cut-Off Date.

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

        "Defaulted Contract" means, with respect to any Due Period, a Contract
(i) which is, at the end of such Due Period, delinquent in the amount of at
least two monthly payments or (ii) with respect to which the related Financed
Vehicle has been repossessed or repossession efforts have been commenced.

        "Deficiency Notice" means, with respect to any Distribution Date, the
notice delivered pursuant to Section 5.02(b) by the Master Servicer to the
Indenture Trustee, with a copy to the Insurer and the Owner Trustee.

        "Definitive Notes" shall have the meaning specified in the Indenture.

        "Delinquent Contract" means any Contract that is 60 days or more
delinquent.

        "Delinquency Percentage" means, with respect to any three calendar month
period, the average of the percentages of delinquent Contracts for each month in
such period. For each month the percentage of delinquent Contracts shall be the
percentage equivalent of a fraction, the numerator of which is the sum of (i)
the aggregate Principal Balance of all Outstanding Delinquent Contracts (after
taking into account permitted extensions), plus (ii) the aggregate Principal
Balance of all Contracts in respect of which the related Financed Vehicles have
been repossessed but have not been liquidated (to the extent the related
Contract is not otherwise reflected in clause (i) above), and the denominator of
which is the aggregate Principal Balance of all outstanding Contracts, in each
case, on the last day of such calendar month.

        "Delivery" means, when used with respect to Trust Account Property:

               (i) with respect to certificated securities, bankers'
        acceptances, commercial paper, negotiable certificates of deposit and
        any other obligations which evidence a right to the payment of money and
        is not itself a security agreement or lease and is of a type which is in
        ordinary course of business transferred by delivery with necessary
        endorsement or assignment (collectively, "Physical Property"): (A) the
        Indenture Trustee or the Owner Trustee, as the case may be, or its
        Financial Intermediary acquires possession of the Physical Property, and
        evidence that any such Physical Property that is in registerable form
        has been registered in the name of the Trustee, its Financial
        Intermediary, its custodian or its nominee; (B) the Financial
        Intermediary, not a clearing corporation, sends the Indenture Trustee or
        the Owner Trustee, as the case may be, confirmation of the transfer and
        also by book entry or otherwise identifies as belonging to the Indenture
        Trustee or the Owner Trustee, as the case may be, the Physical Property
        in the Financial

                                       6
<PAGE>

        Intermediary's possession; or (C) with respect to a clearing
        corporation, appropriate entries to the account of the Indenture Trustee
        or the Owner Trustee, as the case may be, or a Person designated by him
        or her and, if certificated, it is both, in the custody of the clearing
        corporation or another clearing corporation, a custodian bank or a
        nominee of any of them and, in bearer form or endorsed in blank by the
        appropriate person or registered in the name of the clearing
        corporation, custodian bank, or a nominee of any of them;

                  (ii) with respect to any Trust Account Property that is a
        book-entry security held through the Federal Reserve System pursuant to
        Federal book-entry regulations, the following procedures, all in
        accordance with applicable law, including applicable Federal regulations
        and Articles 8 and 9 of the UCC: (A) book-entry registration of such
        property to an appropriate book-entry account maintained with a Federal
        Reserve Bank by the Indenture Trustee or the Owner Trustee, as the case
        may be, of a deposit advice or other written confirmation of such
        book-entry registration, (B) the making by any such custodian of entries
        in its books and records identifying such book-entry security held
        through the Federal Reserve System pursuant to federal book-entry
        regulations as belonging to the Indenture Trustee or the Owner Trustee,
        as the case may be, and indicating that such custodian holds such Trust
        Account Property solely as agent for the Indenture Trustee or the Owner
        Trustee, as the case may be, and the making by the Indenture Trustee or
        the Owner Trustee, as the case may be, of entries in its books and
        records establishing that it holds such Trust Account Property solely as
        trustee pursuant to Section 5.01, and (C) such additional or alternative
        procedures as may hereafter become necessary to effect complete transfer
        of ownership of any such Trust Account Property to the Indenture Trustee
        or the Owner Trustee, as the case may be, consistent with changes in
        applicable law or regulations or the interpretation thereof; and

                  (iii) with respect to any Trust Account Property that is an
        uncertificated security under Article 8 of the UCC and that is not
        governed by clause (ii) above, registration of the transfer to, and
        ownership of such Trust Account Property by, the Indenture Trustee or
        the Owner Trustee, as the case may be, its custodian or its nominee by
        the issuer of such Trust Account Property.

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

        "Distribution Date" means each February 20, May 20, August 20 and
November 20 or, if any such date shall not be a Business Day, the next
succeeding Business Day, commencing February 20, 2003.

        "Distribution Date Statement" shall have the meaning specified in
Section 4.09(a).

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

        "Due Period" means, with respect to any Distribution Date, the period
commencing on the first day of the third month preceding the month in which such
Distribution Date occurs (or

                                       7
<PAGE>

from the Cut-Off Date in the case of the first Distribution Date) to the last
day of the month immediately preceding the month in which such Distribution Date
occurs.

        "Eligible Account" means (i) a segregated trust account in the corporate
trust department that is maintained with a depository institution or trust
company, commercial paper or other short-term debt obligations of which have
credit ratings from Standard & Poor's at least equal to "A-1+" and from Moody's
equal to "Prime-1", which account is fully insured up to applicable limits by
the FDIC or (ii) a general ledger account or deposit account that is (A)
guaranteed by an entity the long-term unsecured debt obligations of which are
rated "Aa2" by Moody's and "AAA" by Standard & Poor's or the commercial paper or
other short-term debt obligations of which have credit ratings from Standard &
Poor's at least equal to "A-1+" and from Moody's equal to "Prime-1" or (B) that
otherwise will not result in the qualification, reduction or withdrawal by any
Rating Agency of its then-applicable rating on any Class of Notes (without
giving effect to the guaranty under the Note Policy of payments owing to the
Noteholders). If any Eligible Account falls below the ratings specified in (i)
or (ii) above, all monies in such Eligible Account will be moved within 15 days
to an account meeting the requirements of an Eligible Account.

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

                (i) direct obligations of, and obligations fully guaranteed as
        to timely payment of principal and interest by, the United States or any
        agency or instrumentality of the United States the obligations of which
        are backed by the full faith and credit of the United States;

               (ii) general obligations of or obligations guaranteed as to
        timely payment of principal and interest by FNMA or FHLMC;

                (iii) demand and time deposits in, certificates of deposit of,
        banker's acceptances issued by, or federal funds sold by any depository
        institution or trust company (including the Indenture Trustee or the
        Owner Trustee) incorporated under the laws of the United States or any
        state and subject to supervision and examination by federal and/or state
        banking authorities, so long as at the time of such investment or
        contractual commitment providing for such investment either the
        long-term, unsecured debt obligations of such depository institution or
        trust company have credit ratings from Moody's at least equal to "Aa2"
        and shall have commercial paper or other short-term debt obligations
        rated at least "A-1+" by Standard & Poor's and "Prime-1" by Moody's;

                (iv)  Commercial Paper;

                (v)   Proprietary Funds;

               (vi) the RIC, provided that (A)(1) it is guaranteed by an entity
        which has long-term, unsecured debt obligations rated "AAA" by Standard
        & Poor's and at least "Aa2" by Moody's or (2) such investment will not
        result in a qualification, reduction or withdrawal by any Rating Agency
        of its then-applicable rating on any Class of Notes (without giving
        effect to the guaranty under the Note Policy of payments owing to the

                                       8
<PAGE>

        Noteholders) and (B) it has not ceased to be an Eligible Investment in
        accordance with Section 2 thereof; if the investments in this paragraph
        fall below the specified ratings, the invested monies shall be moved to
        Eligible Investments on the fifth Business Day preceding the next
        succeeding Distribution Date; however, no new monies may be invested in
        the RIC until the RIC once again becomes an Eligible Investment; and

                (vii) any other investments which meet the criteria of each
        Rating Agency as being consistent with their then-current rating of each
        Class of Notes.

        "Estimated Sale Value" means, with respect to a Repossessed Vehicle, the
estimated sale value determined in good faith (and in accordance with its credit
and collection policy) by the Master Servicer as of the related Charge-Off Date.

        "Excess Spread Amount" means, with respect to a Distribution Date or
Calculation Day, the excess of the Spread Account Balance over the Specified
Spread Account Balance (after giving effect to all deposits to, and withdrawals
(other than withdrawals pursuant to Section 5.06(b)) from the Spread Account on
such Distribution Date or Calculation Day, as the case may be).

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

        "FDIC" means the Federal Deposit Insurance Corporation, and its
successors.

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

        "FNMA" means the Federal National Mortgage Association, and its
successors.

        "Financial Intermediary" means a bank, broker, clearing corporation or
the Person (or the nominee of any of them) that in the ordinary course of its
business maintains security accounts for its customers and is acting in that
capacity.

        "Fiscal Agent" shall have the meaning set forth in the Note Policy.

        "FHLMC" means the Federal Home Loan Mortgage Corporation, and its
successors.

        "Gross Charge-Off Amount" means, with respect to any Due Period, the sum
of (i) the excess of the outstanding Principal Balances of all Repossessed
Vehicle Contracts as to which the related Charge-Off Dates have occurred during
the related Due Period over the aggregate Estimated Sale Values of the related
Repossessed Vehicles, (ii) the excess of the aggregate Estimated Sale Values of
Repossessed Vehicles sold during the related Due Period over the net sales
proceeds of such Repossessed Vehicles, (iii) the outstanding Principal Balances
of Contracts, other than Repossessed Vehicle Contracts and Chapter 13 Contracts,
that have become 120 days past due during the related Due Period, (iv) the
amount by which the outstanding Principal Balances of Contracts that have become
Chapter 13 Contracts during the related Due Period have been reduced by the
related Chapter 13 Plans of Reorganization and (v) the outstanding Principal
Balances, as such balances have been previously reduced by the related

                                       9
<PAGE>

Chapter 13 Plans of Reorganizations, of Chapter 13 Contracts that are no longer
in compliance with their Chapter 13 Plans of Reorganization and are more than
120 days past due as of the last day of the related Due Period; provided that,
with respect to any Contract, in no event shall the aggregate amount included in
the Gross Charge-Off Amounts for all Due Periods exceed the outstanding
Principal Balance of such Contract as of the date it becomes a Defaulted
Contract.

        "Holder" means, with respect to a (i) Certificate, the Person in whose
name such Certificate is registered in the Certificate Register and (ii) Note,
the Person in whose name such Note is registered in the Note Register.

        "Indenture" means the Indenture, dated as of November 1, 2002, between
the Issuer and the Indenture Trustee, as the same may be amended or supplemented
from time to time.

        "Indenture Trustee" means the Person acting as trustee under the
Indenture, its successors in interest and any successor trustee under the
Indenture and, initially, will be Deutsche Bank Trust Company Americas.

        "Independent", when used with respect to any specified Person, means
such a Person who (i) is in fact independent of the Issuer, the Seller or WFS,
(ii) is not a director, officer or employee of any Affiliate of the Issuer, the
Seller or WFS, (iii) is not a person related to any officer or director of the
Issuer, the Seller, WFS or any of their respective Affiliates, (iv) is not a
holder (directly or indirectly) of more than 10% of any voting securities of the
Issuer, the Seller, WFS or any of their respective Affiliates and (v) is not
connected with the Issuer, the Seller or WFS as an officer, employee, promoter,
underwriter, trustee, partner, director or person performing similar functions;
provided that a person who is an Independent director or Independent officer of
the Seller may be an Independent director or Independent officer of an Affiliate
of the Seller which is a special purpose bankruptcy remote entity.

        "Insolvency Event" means, with respect to a specified Person, (i) the
entry of a decree or order for relief by a court or regulatory authority having
jurisdiction in respect of such Person in an involuntary case under the federal
bankruptcy laws, as now or hereafter in effect, or any other present or future,
federal or state, bankruptcy, insolvency or similar law, or appointing a
receiver, liquidator, assignee, custodian, trustee, sequestrator or other
similar official for such Person or for any substantial part of its property, or
ordering the winding-up or liquidation of such Person's affairs, and the
continuance of any such decree or order unstayed and in effect for a period of
60 consecutive days; (ii) the commencement of an involuntary case under the
federal bankruptcy laws, as now or hereinafter in effect, or any other present
or future federal or state bankruptcy, insolvency or similar law and such case
is not dismissed within 60 days; or (iii) the commencement by such Person of a
voluntary case under the federal bankruptcy laws, as now or hereinafter in
effect, or any other present or future federal or state, bankruptcy, insolvency
or similar law, or the consent by such Person to the appointment of or taking
possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator
or other similar official for such Person or for any substantial part of its
property, or the making by such Person of an assignment for the benefit of
creditors or the failure by such Person generally to pay its debts as such debts
become due or the taking of corporate action by such Person in furtherance of
any the foregoing.

        "Insolvency Proceeding" shall have the meaning specified in Section
8.06.

                                       10
<PAGE>

        "Insolvency Proceeds" shall have the meaning specified in Section
9.01(b).

        "Insurance Agreement" means the Insurance, Indemnity and Pledge
Agreement, dated as of the date hereof, among the Insurer, the Issuer, the
Seller, the Master Servicer and the Indenture Trustee, is substantially the form
attached hereto as Exhibit A, as the same may be amended or supplemented from
time to time.

        "Insurance Agreement Obligations" means, as of any date, the aggregate
of amounts owing to the Insurer under the Insurance Agreement as of such date,
other than amounts representing payments made under the Note Policy for which
the Insurer has not yet been reimbursed.

        "Insurance Policy" means, with respect to a Financed Vehicle, the
policies of comprehensive and collision insurance and the LDI Policy.

        "Insurance Proceeds" means proceeds paid pursuant to any Insurance
Policy and amounts (exclusive of rebated premiums) paid by any insurer under any
other insurance policy related to a Financed Vehicle, a Contract or an Obligor.

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

        "Insurer Insolvency" means (i) the entry of a decree or order for relief
by a court or regulatory authority having jurisdiction in respect of the Insurer
in an involuntary case under the federal bankruptcy laws, as now or hereafter in
effect, or any other present or future federal or state bankruptcy, insolvency,
rehabilitation or similar law, or appointing a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of the Insurer or of
any substantial part of its property, or ordering the winding up or liquidation
of the affairs of the Insurer and the continuance of any such decree or order
unstayed and in effect for a period of 60 consecutive days, or (ii) the
commencement by the Insurer of a voluntary case under the federal bankruptcy
laws, as now or hereafter in effect, or any other present or future federal or
state bankruptcy, insolvency, rehabilitation or similar law, or the consent by
the Insurer to the appointment of or taking possession by a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar official
of the Insurer or of any substantial part of its property or the making by the
Insurer of an assignment for the benefit of creditors or the failure by the
Insurer generally to pay its debts as such debts become due or the taking of
corporate action by the Insurer in furtherance of any of the foregoing.

        "Interest Period" means, with respect to any Distribution Date and (i)
the Class A-1 Notes, the Class A-2 Notes, the Class A-3B Notes and the Class
A-4B Notes, the period from, and including, the Distribution Date immediately
preceding such Distribution Date (or, in the case of the first Distribution Date
from, and including, November 14, 2002) to, but excluding, such Distribution
Date and (ii) the Class A-3A Notes and the Class A-4A Notes, the period from,
and including, the 20th day of the month in which the Distribution Date
immediately preceding such Distribution Date occurs (or in the case of the first
Distribution Date from and including November 14, 2002) to, but excluding, the
20th day of the month of such Distribution Date.

        "Interest Rate" means the Class A-1 Rate, the Class A-2 Rate, the Class
A-3A Rate, the Class A-3B Rate, the Class A-4A Rate or the Class A-4B Rate, as
applicable.

                                       11
<PAGE>

        "Interest Rate Swap Agreement" means the interest rate swap agreement,
dated as of November 14, 2002, between the Issuer and the Swap Counterparty, as
the same may be amended or supplemented from time to time.

        "Investment Earnings" means, with respect to any Distribution Date, the
investment earnings (net of losses and investment expenses) on amounts on
deposit in the Trust Accounts to be deposited into the Collection Account on
such Distribution Date pursuant to Section 5.01(b).

        "Issuer" means the WFS Financial 2002-4 Owner Trust.

        "LDI Policy" means the limited dual interest policy providing coverage
for physical damage to, or loss of, a Financed Vehicle.

        "LIBOR Determination Date" means the second London Business Day prior to
the Closing Date with respect to the first Distribution Date and, as to each
subsequent Distribution Date, the second London Business Day prior to the
immediately preceding Distribution Date.

        "LIBOR Rate" means, with respect to any Interest Period, the London
interbank offered rate for deposits in U.S. dollars having a maturity of three
months commencing on the related LIBOR Determination Date which appears on
Telerate Page 3750 as of 11:00 a.m., London time, on such LIBOR Determination
Date; provided, however, that if such rate does not appear on the Telerate Page
3750, the LIBOR Rate will equal the Reference Bank Rate.

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

        "Liquidated Contract" means a Contract which (i) has been the subject of
a Prepayment; (ii) was a Defaulted Contract and with respect to which the
related Financed Vehicle was repossessed and, after any cure period required by
law has expired, the Master Servicer has charged-off any losses prior to the end
of the four-month period referred to in clause (iv); (iii) has been paid in full
on or after its Maturity Date; or (iv) has become delinquent as to all or part
of four or more payments of Monthly P&I. The Principal Balance of a Liquidated
Contract will be deemed to be zero.

        "Liquidation Expenses" means reasonable out-of-pocket expenses (not to
exceed Liquidation Proceeds), other than any overhead expenses, incurred by the
Master Servicer in connection with the realization of the full amounts due under
any Contract (including the attempted liquidation of a Contract which is brought
current and is no longer in default during such attempted liquidation) and the
sale of any property acquired in respect thereof which are not recoverable under
any Insurance Policy.

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

                                       12
<PAGE>

        "London Business Day" means any day other than a Saturday, Sunday or a
day on which banking institutions in London, England are authorized or obligated
by law or government decree to be closed.

        "Master Servicer" means WFS in its capacity as the master servicer of
the Contracts under Section 4.01, and, in each case upon succession in
accordance herewith, each successor servicer in the same capacity pursuant to
Section 4.01 and each successor master servicer pursuant to Section 8.02.

        "Master Servicer Report Date" means, with respect to any Distribution
Date, the fifth Business Day prior to such Distribution Date.

        "Maturity Date" means, with respect to any Contract, the date on which
the last scheduled payment of such Contract shall be due and payable (after
giving effect to all Prepayments received prior to the date of determination) as
such date may be extended pursuant to Section 4.02.

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

        "Moody's" means Moody's Investors Service, and its successors.

        "Net Charge-Off Percentage" means, with respect to each Calculation Day
in a Due Period, the percentage equivalent of a fraction, (a) the numerator of
which is equal to the excess of the sum of the Gross Charge-Off Amounts for such
Due Period (as of such Calculation Day) and all prior Due Periods over the sum
of Recoveries for such Due Period (as of such Calculation Day) and all prior Due
Periods and (b) the denominator of which is equal to the Cut-Off Date Aggregate
Principal Balance.

        "Net Charge-Off Percentage Trigger" means, with respect to any
Calculation Day, the percentage set forth in Schedule C.

        "Net Collections" means, with respect to any Distribution Date and the
related Due Period, the sum of (i) all amounts collected on or in respect of the
Contracts during such Due Period, including, Monthly P&I, the Aggregate
Repurchase Amount, if any, Liquidation Proceeds (only to the extent of the
related Net Liquidation Proceeds), Insurance Proceeds (only to the extent of the
related Net Insurance Proceeds), less the sum of (A) any late payments of
interest retained by the Master Servicer as reimbursement for Advances pursuant
to Section 5.04, (B) any installments of Monthly P&I or Prepayments retained by
the Master Servicer as reimbursement for Nonrecoverable Advances pursuant to
Section 5.04 and (C) any other amount retained by the Master Servicer as
compensation pursuant to Section 4.08; (ii) the Advance for such Due Period to
the extent actually made; (iii) the investment earnings on funds in the
Collection Account for such Distribution Date (which, except as otherwise
provided in Section 5.01, shall be the RIC Reinvestment Earnings); (iv) the
aggregate Repurchase Amount for Repurchased Contracts deposited in or credited
to the Collection Account pursuant to Section 5.04(c) on the related Master
Servicer Report Date; and (v) Net Swap Receipts excluding

                                       13
<PAGE>

any Swap Termination Payments paid by the Swap Counterparty to the extent such
amounts are used to enter into a replacement interest rate swap agreement.

        "Net Contract Rate" means, with respect to any Contract, its Contract
Rate less the sum of the Servicing Fee Percent.

        "Net Insurance Proceeds" means, with respect to any Contract, Insurance
Proceeds net of any such amount applied to the repair of the related Financed
Vehicle, released to the related Obligor in accordance with the normal servicing
procedures of the Master Servicer or representing expenses incurred by the
Master Servicer and recoverable hereunder.

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

        "Net Swap Payment" means any net amount owed by the Issuer to the Swap
Counterparty pursuant to an Interest Rate Swap Agreement including Swap
Termination Payments, but only to the extent such Swap Termination Payments
resulted from (i) a failure of the Issuer to pay to the Swap Counterparty any
amounts due to it, (ii) an Insolvency Event with respect to the Issuer or (iii)
an Event of Default specified in Section 5.01(a)(i) and (ii) of the Indenture.

        "Net Swap Receipt" means any amount paid by the Swap Counterparty to the
Issuer pursuant to an Interest Rate Swap Agreement including any Swap
Termination Payments.

        "Nonrecoverable Advance" means any Advance proposed to be made or
previously made by the Master Servicer which, in its good faith judgment, would
not be or will not be ultimately recoverable by the Master Servicer from late
payments, Insurance Proceeds or Liquidation Proceeds.

        "Note" has the meaning set forth in the Indenture.

        "Note Deficiency Claim Amount" means, with respect to each Distribution
Date, the amount, if any, by which the Note Distributable Amount for such
Distribution Date exceeds the amount of Net Collections actually deposited in
the Note Distribution Account on such Distribution Date in accordance with
Section 5.05.

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

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

        "Note Final Scheduled Distribution Date" means the Class A-1 Final
Scheduled Distribution Date, the Class A-2 Final Scheduled Distribution Date,
the Class A-3 Final Scheduled Distribution Date and the Class A-4 Final
Scheduled Distribution Date, as the case may be.

                                       14
<PAGE>

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

        "Note Interest Distributable Amount" means, with respect to any
Distribution Date and a Class of Notes, the sum of the Note Quarterly Interest
Distributable Amount for such Class of Notes for such Distribution Date and the
Note Interest Carryover Shortfall, if any, for such Class of Notes for such
Distribution Date. For all purposes of this Agreement and the other Basic
Documents, interest with respect to the (i) Class A-1 Notes, Class A-2 Notes,
Class A-3B Notes and the Class A-4B Notes shall be computed on the basis of a
360-day year and the actual number of days elapsed since the immediately
preceding Distribution Date (or, with respect to the first Distribution Date,
since November 14, 2002) and (ii) Class A-3A Notes and Class A-4A Notes shall be
computed on the basis of a 360-day year consisting of twelve 30-day months.

        "Note Policy" means the financial guaranty insurance policy issued by
the Insurer to the Indenture Trustee on behalf of the Noteholders, the form of
which is attached as Exhibit B hereto.

        "Note Policy Claim Amount" means, with respect to each Distribution
Date, the amount, if any, by which the Note Distributable Amount for such
Distribution Date exceeds the sum of (i) the amount of Net Collections actually
deposited in the Note Distribution Account on such Distribution Date in
accordance with Section 5.05 and (ii) the amount of the Note Deficiency Claim
Amount, if any, paid to the Note Distribution Account from the Spread Account
pursuant to a Deficiency Notice delivered for such Distribution Date.

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

        "Note Principal Carryover Shortfall" means, as of any Distribution Date,
the excess of the sum of the Note Quarterly Principal Distributable Amount for
such Distribution Date and any outstanding Note Principal Carryover Shortfall,
if any, for the immediately preceding Distribution Date over the amount in
respect of principal that is actually deposited in the Note Distribution Account
on the related Distribution Date.

        "Note Principal Distributable Amount" means, with respect to any
Distribution Date, the sum of the Note Quarterly Principal Distributable Amount
for such Distribution Date and the Note Principal Carryover Shortfall, if any,
for the immediately preceding Distribution Date; provided, however, that the
Note Principal Distributable Amount with respect to a Class of Notes shall not
exceed the outstanding principal amount of such Class of Notes; provided,
further, that the Note Principal Distributable Amount on each Note Final
Scheduled Distribution Date shall not be less than the amount that is necessary
(after giving effect to other amounts to be deposited

                                       15
<PAGE>

in the Note Distribution Account on such Distribution Date and allocable to
principal) to reduce the outstanding principal amount of the related Class of
Notes to zero.

        "Note Quarterly Interest Distributable Amount" means, with respect to
any Distribution Date, the sum of all interest accrued for the related Interest
Period on each Class of Notes at the related Interest Rate for such Class on the
outstanding principal amount of the Notes of such Class on the immediately
preceding Distribution Date, after giving effect to all payments of principal to
the Noteholders of such Class on or prior to such Distribution Date (or, in the
case of the first Distribution Date, on the original principal amount of such
Class of Notes).

        "Note Quarterly Principal Distributable Amount" means, with respect to
any Distribution Date, the amount by which the Aggregate Principal Balance as of
the beginning of the related Due Period (or the Cut-Off Date Aggregate Principal
Balance in the case of the first Distribution Date) exceeds the Aggregate
Principal Balance at the end of such Due Period.

        "Note Register" shall have the meaning specified in the Indenture.

        "Note Registrar" shall have the meaning specified in the Indenture.

        "Noteholder" means, with respect to a Note, the Holder of such Note.

        "Obligee" means the Person to whom an Obligor is indebted under a
Contract.

        "Obligor" on a Contract means the purchaser or co-purchasers of the
Financed Vehicle and any other Person who owes payments under the Contract.

        "Offered Securities" shall have the meaning specified in Section
6.03(b)(ii).

        "Officers' Certificate" means a certificate signed by the chairman, the
president or a Vice President, and by the treasurer, an assistant treasurer, the
controller, an assistant controller, the secretary or an assistant secretary of
any Person delivering such certificate and delivered to the Person to whom such
certificate is required to be delivered. In the case of an Officers' Certificate
of the Master Servicer, at least one of the signing officers must be a Servicing
Officer. Unless otherwise specified, any reference herein to an Officers'
Certificate shall be to an Officers' Certificate of the Master Servicer.

        "Opinion of Counsel" means a written opinion of counsel (who may be
counsel to the Seller or the Master Servicer) acceptable to the Indenture
Trustee or the Owner Trustee, as the case may be, and the Insurer.

        "Original Pool Balance" means $1,350,000,000.

        "Outstanding" means, with respect

                  (i) to a Contract and as of time of reference thereto, a
        Contract that has not reached its Maturity Date, has not been fully
        prepaid, has not become a Liquidated Contract and has not been
        repurchased pursuant to Section 3.02, 4.07 or 9.01; and

                                       16
<PAGE>

                  (ii) to the Securities, as of the date of determination, all
        Notes of one Class or of all Classes, all Certificates or all Notes and
        Certificates, as the case may be, theretofore authenticated and
        delivered except:

                      (A) Securities theretofore cancelled by the applicable
               Registrar or delivered to the applicable Registrar for
               cancellation;

                      (B) Securities or portions thereof the payment for which
               money in the necessary amount has been theretofore deposited with
               the applicable Trustee or any Paying Agent, as the case may be,
               in trust for the Holders of such Securities (provided, however,
               that if such Securities are to be redeemed or repurchased, notice
               of such redemption or repurchase has been duly given or provision
               for such notice has been made, satisfactory to the applicable
               Trustee); and

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

provided, however, that Securities which have been paid with proceeds of the
Note Policy shall continue to remain Outstanding until the Insurer has been paid
as subrogee hereunder or reimbursed pursuant to the Insurance Agreement as
evidenced by a written notice from the Insurer delivered to the applicable
Trustee, and the Insurer shall be deemed to be the Holder thereof to the extent
of any payments thereon made by the Insurer; provided, further, that in
determining whether the Holders of a specified Outstanding Amount of Securities
have given any request, demand, authorization, direction, notice, consent or
waiver hereunder or under any other Basic Document, Securities owned by the
Issuer, any other obligor upon the Securities, the Seller, WFS or any of their
respective Affiliates shall be disregarded and deemed not to be Outstanding
prior to the Policy Expiration Date, except that, in determining whether the
applicable Trustee shall be protected in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Securities that the
applicable Trustee knows to be so owned shall be so disregarded. Securities so
owned that have been pledged in good faith may be regarded as Outstanding if the
pledgee establishes to the satisfaction of the applicable Trustee the pledgee's
right so to act with respect to such Securities and that the pledgee is not the
Issuer, any other obligor upon the Securities, the Seller, WFS or any of their
respective Affiliates.

        "Outstanding Amount" means the aggregate principal amount of all Notes
of one Class or of all Classes, as the case may be, Outstanding at the date of
determination.

        "Owner Trustee" means the Person acting as Owner Trustee under the Trust
Agreement, its successors in interest and any successor owner trustee under the
Trust Agreement and, initially, will be Chase Manhattan Bank USA, National
Association.

        "Owner Trustee Corporate Trust Office" shall have the meaning specified
in the Trust Agreement.

        "Paying Agent" means the "Paying Agent" under the Trust Agreement or the
Indenture, as the case may be.

                                       17
<PAGE>

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

        "Physical Property" shall have the meaning specified in the definition
of the term "Delivery".

        "Policy Expiration Date" means the date on which the Notes have been
paid in full and all outstanding reimbursement obligations and other amounts due
to the Insurer have been paid in full and the Term Of this Policy (as defined in
the Note Policy) has expired.

        "Preference Claim" shall have the meaning specified in Section 8.06.

        "Preferential Transfer" shall have the meaning specified for the term
"Preference" in the Insurance Agreement.

        "Prepayment" means any of the following: (i) payment to the Master
Servicer of 100% of the outstanding principal balance of a Contract, exclusive
of any Contract referred to in clause (ii), (iii) or (iv) of the definition of
the term "Liquidated Contract", together with all accrued and unpaid interest
thereon to the date of such payment, or (ii) payment by the Seller or the Master
Servicer, as the case may be, of the purchase price of a Contract in connection
with the purchase of a Contract pursuant to Section 3.02 or 4.07, or payment by
the Seller or the Certificateholder, as the case may be, of the purchase price
of a Contract in connection with the purchase of all Contracts pursuant to
Section 9.01.

        "Principal Balance" means, with respect to a Contract that is a (i) Rule
of 78's Contract, the amount set forth as the Principal Balance of such Contract
on the Schedule of Contracts, such amount being the total of all Monthly P&I
received on or after November 13, 2002 less any unearned interest as of the Due
Date for such Contract immediately preceding November 13, 2002, computed in
accordance with the Rule of 78's, less all amounts received on or in respect of
such Contract on or after November 13, 2002 that are allocable to principal and
(ii) Simple Interest Contract, the actual principal balance under the terms
thereof.

        "Proprietary Funds" means money market funds having a rating from each
Rating Agency in the highest investment category granted by each Rating Agency,
including funds for which the Indenture Trustee or the Owner Trustee or any of
their respective Affiliates is investment manager or advisor.

        "Rating Agency" means Moody's and Standard & Poor's.

        "Record Date" means, with respect to a Class of Notes or the
Certificates and any Distribution Date or Redemption Date, the close of business
on the Business Day immediately preceding such Distribution Date or Redemption
Date or, in the case of the Notes, in the event that Definitive Notes are
issued, the 15th day of the month preceding the month in which such Distribution
Date occurs.

        "Recoveries" means, with respect to any Due Period, the sum of (i) the
excess of actual sales proceeds for Repossessed Vehicles sold during such Due
Period over the sum of (a) the

                                       18
<PAGE>

Estimated Sales Values of such Repossessed Vehicles and (b) any amounts required
by law to be remitted to the related Obligor and (ii) any insurance proceeds and
other amounts received in that Due Period from the related Obligors or otherwise
in connection with Repossessed Vehicle Contracts, Chapter 13 Contracts and
Contracts that have become 120 days past due.

        "Redemption Price" shall have the meaning specified in the Indenture.

        "Reference Bank Rate" means with respect to any Interest Period, the
arithmetic mean to the nearest 1/100,000 of 1% (0.0000001), with five
one-millionths of a percentage point rounded upward, of the rates, as of 11:00
A.M., London time, on the related LIBOR Determination Date, at which deposits in
United States dollars, having a maturity of three months and a principal amount
of not less than $1,000,000, offered by the Reference Banks from which the
Indenture Trustee has received quotations; provided however, in the event that
the Indenture Trustee has not received quotations from at least two Reference
Banks, the Reference Bank Rate will be the arithmetic mean to the nearest
1/100,000 of 1% (0.0000001), with five one-millionths of a percentage point
rounded upward, of the rates quoted by two or more major banks in New York City,
selected by the Indenture Trustee, as of 11:00 A.M., New York City time, on the
LIBOR Determination Date for loans in United States dollars to leading European
banks having a maturity of three months and a principal in amounts not less than
$1,000,000; provided, further, if less than two such quotations can be obtained,
the Reference Bank Rate shall be the Reference Bank Rate for the preceding
Interest Period.

        "Reference Banks" means four major banks that are engaged in the London
interbank market that are selected by the Indenture Trustee.

        "Registrar" means the Note Registrar or the Certificate Registrar, as
the case may be.

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

        "Replacement Interest Rate Swap Agreement" has the meaning set forth in
Section 3.13 of the Insurance Agreement.

        "Repossessed Vehicle" means the Financed Vehicle under a Repossessed
Vehicle Contract.

        "Repossessed Vehicle Contract" means a Defaulted Contract for which the
related Financed Vehicle has been repossessed by the Master Servicer.

        "Repurchase Amount" means, with respect to any Contract, the amount, as
of the date of repurchase, required to prepay in full the principal of and
accrued interest on such Contract to the last Due Date in the Due Period in
which such repurchase occurs.

        "Repurchased Contract" means a Contract repurchased as of the related
Master Servicer Report Date by the Master Servicer pursuant to Section 4.07 or
by the Seller pursuant to Section 3.02.

                                       19
<PAGE>

        "Responsible Officer" means any officer within the Corporate Trust and
Agency Group (or any successor group) of the Indenture Trustee including any
vice president, assistant secretary or any other officer or assistant officer of
the Indenture Trustee customarily performing functions similar to those
performed by the persons who at the time shall be such officers, respectively,
or to whom any corporate trust matter is referred at the Indenture Trustee's
Corporate Trust Office because of his knowledge of and familiarity with the
particular subject.

        "RIC" means the reinvestment contract provided by the Bank and WFAL2 or,
with the prior written consent of the Insurer, a subsidiary thereof,
substantially in the form of Exhibit C hereto.

        "RIC Reinvestment Earnings" means, with respect to any Distribution
Date, the related Due Period and the Contracts that were Outstanding at the
beginning of such Due Period, the amount by which the sum of the Note Quarterly
Interest Distributable Amount for such Distribution Date exceeds the sum of (i)
the aggregate amount of interest on the Contracts (adjusted with respect to each
Contract to the [Class A-4A Rate] and exclusive of such collections that have
been paid to the Master Servicer in reimbursement of a previous Advance) that is
part of Net Collections for such Distribution Date and (ii) the amount of the
Advance as to interest for such Distribution Date (assuming for this purpose
that an Advance was made in respect of each Contract (other than Liquidated
Contracts) for which the Master Servicer has not received one or more payments
of Monthly P&I due under such Contract).

        "Rule of 78's Contract" means a Contract as to which payments thereunder
are applied on the basis of the Rule of 78's.

        "Schedule of Contracts" means the list or lists of Contracts attached as
Schedule A to this Agreement, which Contracts are being transferred to the Owner
Trustee as part of the Trust Estate, which list or lists shall set forth the
following information with respect to each such Contract in numbered columns:

<TABLE>
<CAPTION>
Information                                                         Column Number
-----------                                                         -------------
<S>                                                                 <C>
Contract Number ("ACCT NBR")..............................              2
Date of Origination ("ORG DT")............................              9
Maturity Date ("MAT DT")..................................             15
Monthly P&I ("P&I").......................................             10
Original Principal Balance ("ORIG AMT")...................             16 Top
Principal Balance ("PRIN BAL")............................             16 Bottom
Discount Rate ("APR").....................................              7
</TABLE>

        "Securities" means the Notes and the Certificates.

        "Securityholders" means the Holders of the Notes and the Certificates.

        "Seller" means WFSRC, in its capacity as the Seller of Contracts under
this Agreement, and each successor thereto (in the same capacity) pursuant to
Section 6.03.

        "Servicer Default" means an event specified in Section 8.01.

                                       20
<PAGE>

        "Servicing Fee" means, as to any Distribution Date, the aggregate amount
calculated in respect to the Servicing Fee for each month in the related Due
Period, which for each such month shall equal the product of one-twelfth of the
Servicing Fee Percent and the Aggregate Principal Balance as of the first day of
such month or, in the case of the first month of the first Due Period, the
Closing Date. The Servicing Fee attributable to the first month in the first Due
Period will be prorated based on the number of days from the Closing Date to the
last day of such month.

        "Servicing Fee Percent" means one-twelfth of 1.25% per annum.

        "Servicing Officer" means any officer of the Master Servicer involved
in, or responsible for, the administration and servicing of the Contracts whose
name appears on a list of servicing officers furnished to the Indenture Trustee
and the Owner Trustee by the Master Servicer pursuant to Section 4.01.

        "Simple Interest Contract" means a Contract as to which interest is
calculated each day on the basis of the actual principal balance of such
Contract on such day.

        "Specified Spread Account Balance" means, with respect to any
Calculation Day or Distribution Date, 3.75% of the Aggregate Principal Balance
on such Calculation Day, except that if on any Calculation Day (i) the Net
Charge-Off Percentage for the related Calculation Day exceeds the Net Charge-Off
Percentage Trigger or (ii) the Delinquency Percentage for the three calendar
month period ending on such Calculation Day exceeds 2.5%, then the Specified
Spread Account Balance shall equal 9.0% of the Aggregate Principal Balance on
such Calculation Day (but only for so long as such Net Charge-Off Percentage or
Delinquency Percentage thresholds continue to be exceeded on any subsequent
Calculation Day). Notwithstanding the foregoing, in no event shall the Specified
Spread Account Balance be greater than $121,500,000 or less than $24,300,000;
provided, however, the Specified Spread Account Balance shall not be greater
than the Outstanding Amount of the Notes.

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

        "Spread Account Balance" means the amount on deposit in the Spread
Account.

        "Spread Account Initial Deposit" means $13,500,000, 100% of which will
be cash.

        "Standard & Poor's" means Standard & Poor's, a Division of The
McGraw-Hill Companies, Inc., and its successors in interest.

        "Statistical Calculation Date" means October 26, 2002.

        "Statistical Calculation Date Principal Balance" means the sum of the
Principal Balances of selected Contracts as of the Statistical Calculation Date,
which amount is equal to $1,214,526,056.10.

        "Subservicer" means any subservicer engaged by the Master Servicer to
subservice a Contract pursuant to Section 4.01.

                                       21
<PAGE>

        "Subservicing Agreement" means an agreement between the Master Servicer
and a Subservicer relating to the servicing of one or more Contracts.

        "Swap Counterparty" means Credit Suisse First Boston International, as
the swap counterparty under the Interest Rate Swap Agreement.

        "Swap Termination Payments" means payment due to the Swap Counterparty
by the Issuer or to the Issuer by the Swap Counterparty due to the termination
of an Interest Rate Swap Agreement pursuant to the occurrence of an event of
default or termination event under the Interest Rate Swap Agreement or as
otherwise agreed between the parties to the Interest Rate Swap Agreement and
consented to by the Insurer.

        "Telerate Page 3750" is the display page designated as page 3750 by
Moneyline Telerate Service (or any other page that replaces that page on that
service for the purpose of displaying comparable name or rates).

        "Third Party Lender" means an independent finance company, which has
originated or acquired one or more Contracts and assigned such Contract(s) to
WFS.

        "Title Document" means, with respect to any Financed Vehicle, the
certificate of title for, or other evidence of ownership of, such Financed
Vehicle issued by the Registrar of Titles in the jurisdiction in which such
Financed Vehicle is registered.

        "Trust" means the Issuer.

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

        "Trust Accounts" shall have the meaning specified in Section 5.01(a).

        "Trust Agreement" means the Trust Agreement, dated October 28, 2002, as
amended and restated as of November 14, 2002, among the Depositor, the Insurer
and the Owner Trustee, as the same may be amended or supplemented from time to
time.

        "Trust Estate" shall have the meaning specified in the Trust Agreement.

        "Trustee" means the Indenture Trustee or the Owner Trustee, as the case
may be.

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

        "United States" means the United States of America.

        "Unreimbursed Insurer Amounts" means, on any date, the amount that is
the sum of (i) all payments (if any) made under the Note Policy for which the
Insurer has not yet been reimbursed as of such date, plus (ii) all Insurance
Agreement Obligations as of such date.

                                       22
<PAGE>

        "Vehicle Receivables" shall have the meaning specified in Section
6.03(b)(ii).

        "Vice President" of any Person means any vice president of such Person,
whether or not designated by a number or words before or after the title "Vice
President," who is a duly elected officer of such Person.

        "WFAL2" means WFS Financial Auto Loans 2, Inc., a wholly owned
subsidiary of WFS, and its successors and assigns.

        "WFS" means WFS Financial Inc, a majority-owned operating subsidiary of
the Bank, and its successors and assigns.

        "WFSRC" means WFS Receivables Corporation, a wholly owned subsidiary of
WFS, and its successors and assigns.

        (b) Except as otherwise specified herein or as the context may otherwise
require, capitalized terms used herein that are not otherwise defined shall have
the meanings ascribed thereto in the Indenture.

        Section 1.02. Usage of Terms. With respect to all terms in this
Agreement, the singular includes the plural and the plural the singular; words
importing any gender include the other genders; references to "writing" include
printing, typing, lithography and other means of reproducing words in a visible
form; references to agreements and other contractual instruments include all
amendments, modifications and supplements thereto or any changes therein entered
into in accordance with their respective terms and not prohibited by this
Agreement; references to Persons include their permitted successors and assigns;
and the term "including" means "including without limitation."

        Section 1.03. Section References. All Section references, unless
otherwise indicated, shall be to Sections in this Agreement.

        Section 1.04. Calculations. Except as otherwise provided herein, all
interest rate and basis point calculations hereunder will be made on the basis
of a 360-day year and the actual number of days elapsed since the immediately
preceding Distribution Date or the Closing Date, in the case of the first
Distribution Date (or, in the case of the Class A-3A and Class A-4A Notes, on
the basis of a 360-day year and twelve 30-day months) and will be carried out to
at least six decimal places. Collections of interest on Rule of 78's Contracts
shall be calculated as if such Contracts were actuarial contracts the scheduled
principal balances of which are the Principal Balances thereof, and collections
of interest on Simple Interest Contracts will be calculated in accordance with
the terms thereof.

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

                                       23
<PAGE>

                                   ARTICLE TWO

                             CONVEYANCE OF CONTRACTS

        Section 2.01. Conveyance of Contracts.

        (a) In consideration of the Issuer's delivery to or upon the order of
the Seller of the Certificates and $1,350,000,000 aggregate principal balance of
Notes, the Seller hereby grants, transfers, assigns and otherwise conveys to the
Issuer, without recourse (subject to the obligations herein), and hereby grants
a security interest in, all of its right, title and interest (exclusive of the
amount, if any, allocable to any rebatable insurance premium financed by any
Contract) in, to and under the Contracts (which Contracts shall be listed in the
Schedule of Contracts), including, without limitation, all payments of Monthly
P&I received on or after the Cut-Off Date; all Net Liquidation Proceeds and Net
Insurance Proceeds with respect to any Financed Vehicle to which a Contract
relates received on or after the Cut-Off Date and all other proceeds received on
or in respect of such Contracts (other than payments of Monthly P&I received on
or prior to the Cut-Off Date) and any and all security interests in the Financed
Vehicles; the Contract Documents relating to the Contracts; and all proceeds in
any way delivered with respect to the foregoing, all rights to payments with
respect to the foregoing and all rights to enforce the foregoing.

        (b) WFS hereby authorizes and will cause the filing of UCC-1 financing
statements naming WFS as debtor and the Seller as secured party and describing
the Contracts as collateral with the office of the Secretary of State of the
State of California. The Seller hereby authorizes and will cause on or prior to
the Closing Date the filing of UCC-1 financing statements, naming the Seller as
debtor and the Collateral Agent, on behalf of the Insurer, as secured party and
describing the Contracts as collateral, with the Office of the Secretary of
State of the State of California. The grant of a security interest to the
Collateral Agent on behalf of the Insurer and the rights of the Collateral Agent
and the Insurer in respect of such security interest shall be governed by the
Insurance Agreement. The Seller hereby authorizes and will cause on or prior to
the Closing Date the filing of UCC-1 financing statements, naming the Seller as
debtor and the Trust as secured party and describing the Contracts being sold by
it to the Trust as collateral, with the Office of the Secretary of State of the
State of California. The Trust has caused the filing of UCC-1 financing
statements, naming the Trust as debtor and the Indenture Trustee, on behalf of
the Noteholders, as secured party and describing the Contracts as collateral,
with the office of the Secretary of State of the State of Delaware. The grant of
a security interest to the Indenture Trustee and the rights of the Indenture
Trustee in the Contracts shall be governed by the Indenture. From time to time,
the Master Servicer shall cause to be taken such actions as are necessary to
continue the perfection of the respective interests of the Indenture Trustee,
the Trust and the Collateral Agent on behalf of the Insurer in the Contracts and
to continue the first priority security interest of the Indenture Trustee
(subject to the security interest of the Insurer pursuant to the Insurance
Agreement) in the Financed Vehicles and their proceeds (other than, as to such
priority, any statutory lien arising by operation of law after the Closing Date
which is prior to such interest), including, without limitation, the filing of
financing statements, amendments thereto or continuation statements and the
making of notations on records or documents of title.

                                       24
<PAGE>

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

        During the term of this Agreement, the Seller and WFS shall each
maintain its chief executive office in one of the states of the United States,
other than Louisiana or Tennessee.

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

                                       25
<PAGE>

                                  ARTICLE THREE

                                  THE CONTRACTS

        Section 3.01. Representations and Warranties of the Seller. The Seller
hereby makes the following representations and warranties on which (i) the
Issuer is deemed to have relied in acquiring the Contracts and (ii) the Insurer
is deemed to have relied in issuing the Note Policy. Such representations and
warranties speak as of the execution and delivery of this Agreement and as of
the Closing Date, but shall survive the sale, transfer and assignment of the
Contracts to the Issuer and the pledge thereof to the Indenture Trustee pursuant
to the Indenture. The representations and warranties set forth in Sections
3(b)(ii), (iv), (xvi), (xxviii) and (xxix) may not be waived.

               (a) As to the Seller:

                      (i) Organization and Good Standing. The Seller is duly
               organized and validly existing as a corporation in good standing
               under the laws of the State of California, with power and
               authority to own its properties and to conduct its business, and
               has the corporate power, authority and legal right to acquire and
               own the Contracts.

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

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

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

                      (v) No Violation. The consummation of the transactions
               contemplated by this Agreement and the fulfillment of the terms
               hereof do not conflict with, result in any breach of any of the
               terms and provisions of, or constitute (with or without notice or
               lapse of time) a default under, the articles of incorporation or

                                       26
<PAGE>

               bylaws of the Seller, or any indenture, agreement or other
               instrument to which the Seller is a party or by which it is
               bound; nor result in the creation or imposition of any Lien upon
               any of its properties pursuant to the terms of any such
               indenture, agreement or other instrument (other than pursuant to
               the Basic Documents to which the Seller is a party); nor violate
               any law or, to the best of the Seller's knowledge, any order,
               rule or regulation applicable to the Seller of any court or of
               any federal or state regulatory body, administrative agency or
               other governmental instrumentality having jurisdiction over the
               Seller or its properties.

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

               (b) As to each Contract or all of the Contracts, as the case may
        be:

                      (i) Schedule of Contracts. The information pertaining to
               such Contract set forth in the related Schedule of Contracts was
               true and correct in all material respects at the Closing Date and
               the calculations of the Principal Balances appearing in such
               Schedule of Contracts for each such Contract at the Closing Date
               and at each Distribution Date thereafter prior to the related
               Maturity Date have been performed in accordance with this
               Agreement and are accurate.

                      (ii) Security Interests. As of the Closing Date, the
               Seller has taken all steps necessary to perfect its security
               interest against the Obligors in the Financed Vehicles securing
               the Contracts and such Contract granted a valid and enforceable
               first priority security interest in favor of WFS (or to the Bank,
               a Dealer or a Third Party Lender, which security interest has
               been assigned to WFS) in the related Financed Vehicle, and such
               security interest has been duly perfected and is prior to all
               other liens upon and security interests in such Financed Vehicle
               which now exist or may hereafter arise or be created (except, as
               to priority, for any lien for unpaid taxes or unpaid storage or
               repair charges which may arise after the Closing Date). The
               Seller has caused 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 Contracts granted to the Issuer
               hereunder. All financing statements filed against the Seller in
               favor of the Issuer in connection herewith describing the
               Contracts contain a statement to the following effect: "A
               purchase of or security interest in any collateral described in

                                       27
<PAGE>

               this financing statement will violate the rights of the Issuer
               unless the Issuer authorizes it."

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

                      (iv) Title to the Contracts. Immediately prior to the
               issuance of the Notes and the Certificates, the Seller had good
               and indefeasible title to and was the sole owner of each Contract
               to be transferred to the Issuer pursuant to Section 2.01 free of
               liens, claims, encumbrances and rights of any Person and, upon
               transfer of such Contract to the Issuer pursuant to Section 2.01,
               the Issuer will have good and indefeasible title to and will be
               the sole owner of such Contract free of liens, claims,
               encumbrances and rights of any Person, except for the Lien of the
               Indenture Trustee under the Indenture and the security interest
               granted to the Insurer under the Insurance Agreement.

                      (v) Current in Payment. As of the Closing Date, such
               Contract is no more than 30 days delinquent in payment as to all
               or any portion of any installment of Monthly P&I.

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

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

                                       28
<PAGE>

                      (viii) Mechanics' Liens. As of the Closing Date, there are
               no liens or claims for work, labor, material or storage affecting
               the related Financed Vehicle which are or may become a lien prior
               to or equal with the security interest granted by such Contract.

                      (ix) Compliance with Laws. Such Contract, and the sale of
               the Financed Vehicle sold thereunder, complied, at the time it
               was made, in all material respects with all applicable state and
               federal laws (and regulations thereunder), including without
               limitation usury, equal credit opportunity, fair credit
               reporting, truth-in-lending or other similar laws, the Federal
               Trade Commission Act, and applicable state laws regulating retail
               installment sales contracts and loans in general and motor
               vehicle retail installment contracts and loans in particular; and
               the consummation of the transactions herein contemplated,
               including, without limitation, the transfer of ownership of the
               Contracts to the Issuer and the receipt of interest by the
               Securityholders, will not involve the violation of any applicable
               state or federal law.

                      (x) Valid and Binding. Such Contract is the legal, valid
               and binding obligation of the Obligor thereunder and is
               enforceable in accordance with its terms, except as enforcement
               may be limited by bankruptcy, insolvency or similar laws
               affecting the enforcement of creditors' rights generally; all
               parties to such Contract had full legal capacity to execute and
               deliver such Contract and all other documents related thereto and
               to grant the security interest purported to be granted thereby;
               and the terms of such Contract have not been waived or modified
               in any respect, except by instruments that are part of the
               Contract Documents.

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

                      (xii) No Default. As of the Closing Date, there was no
               default, breach, violation or event permitting acceleration
               existing under such Contract (except payment delinquencies
               permitted by subparagraph (v) above) and no event which, with
               notice and the expiration of any grace or cure period, would
               constitute such a default, breach, violation or event permitting
               acceleration under such Contract, and the Seller has not waived
               any such default, breach, violation or event permitting
               acceleration except payment delinquencies permitted by
               subparagraph (v) above.

                      (xiii) Insurance. At the Closing Date, the related
               Financed Vehicle will be covered by (A) a comprehensive and
               collision insurance policy (1) in an amount at least equal to the
               lesser of (a) its actual cash value or (b) the principal amount
               due from the Obligor under the related Contract, (2) naming WFS
               as a loss payee and (3) insuring against loss and damage due to
               fire, theft, transportation, collision and other risks generally
               covered by comprehensive and

                                       29
<PAGE>

               collision coverage or (B) a LDI Policy; provided, however, that
               if such Financed Vehicle has an unpaid principal balance of less
               than $4,000.00 or the related Contract has six or fewer months
               remaining before its Maturity Date, it will not be required to be
               covered by the insurance described in this subparagraph. Each of
               the Seller, WFS and the Master Servicer shall at all times comply
               with all of the provisions of such insurance policies and the LDI
               Policy applicable to such Financed Vehicle.

                      (xiv) Acquisition of Contract. Such Contract was either
               acquired by WFS (or its predecessor in interest) from a Dealer or
               a Third Party Lender with which it ordinarily does business or
               the Bank or originated directly by WFS in the ordinary course of
               its business, and no adverse selection procedures have been
               utilized in selecting such Contract from all other similar
               contracts purchased by the Seller.

                      (xv) Scheduled Payments. As of the Closing Date, scheduled
               payments under such Contract are applied in accordance with the
               Rule of 78's method or the simple interest method and are due
               monthly in level payments through its Maturity Date sufficient to
               fully amortize the principal balance of such Contract by its
               Maturity Date, assuming timely payment by Obligors on Simple
               Interest Contracts, except that the payment in the first or last
               month in the life of the Contract may be minimally different from
               the level payment.

                      (xvi) One Original. There is only one original of such
               Contract and such original, together with all other Contract
               Documents, is being held by the Master Servicer pursuant to
               Section 3.04. The Seller has received a written acknowledgement
               from the Master Servicer that the Master Servicer is holding the
               Contract Documents that constitute or evidence the Contracts
               solely on behalf and for the benefit of the Issuer. None of the
               Contract Documents that constitute or evidence each Contract has
               any marks or notations indicating that it has been pledged,
               assigned or otherwise conveyed to any Person other than the
               Issuer. Each original Contract has been segregated and marked to
               show the Issuer as owner thereof, unless the Insurer has waived
               the requirement for such segregation and marking by notice in
               writing to the Owner Trustee, the Indenture Trustee and the
               Master Servicer.

                      (xvii) Characteristics. As of the Statistical Calculation
               Date such Contract had (A) an Principal Balance of not less than
               $552.58 nor more than $70,328.65, (B) an original term of not
               less than 12 months nor greater than 84 months, (C) a remaining
               maturity of not less than four months nor greater than 84 months
               and (D) an APR of not less than 5.00%.

                      (xviii) Identification. The Master Servicer and WFS have
               clearly marked their electronic records to indicate that such
               Contract is owned by the Issuer.

                                       30
<PAGE>

                      (xix) Maturity. As of the Closing Date such Contract did
               not have a Maturity Date later than the 90th day prior to the end
               of the Due Period immediately preceding the Class A-4 Final
               Scheduled Principal Distribution Date.

                      (xx) Principal Balance. At the Closing Date the initial
               Principal Balance of such Contract was not greater than the
               purchase price of the related vehicle.

                      (xxi) Location of Contract Files. The Contract Files are
               kept at one or more of the locations listed in Schedule B hereto.

                      (xxii) Finance Charge. With respect to each Contract, such
               Contract provides for the payment of a finance charge calculated
               at its APR based on the Rule of 78's or the simple interest
               method and such APR shall be equal to or greater than 5.00%.

                      (xxiii) WFS, Bank and Third Party Lender Originations.
               With respect to the Contracts, the aggregate Principal Balance as
               of the Statistical Calculation Date of such Contracts purchased
               by WFS from the Bank and Third Party Lenders or originated
               directly by WFS is not more than approximately 2.60% of the
               Statistical Calculation Date Principal Balance.

                      (xxiv) Simple Interest Contracts. As of the Statistical
               Calculation Date, approximately 97.51% of the aggregate Principal
               Balances of the Contracts shall be Simple Interest Contracts and
               approximately 2.49% of the aggregate Principal Balances of the
               Contracts shall be Rule of 78's Contracts.

                      (xxv) New or Pre-Owned Vehicles. At least 28.84% of
               the Contracts by Statistical Calculation Date Principal Balance
               were Contracts that financed new vehicles and not greater than
               71.16% were Contracts that financed pre-owned vehicles.

                      (xxvi) States of Origination. Approximately 38.71% of the
               Contracts by Statistical Calculation Date Principal Balance were
               originated or purchased by WFS or the Bank in California and
               approximately 61.29% of the Contracts by Statistical Calculation
               Date Principal Balance were originated in states other than
               California.

                      (xxvii) No Government Entity Obligors. Each Contract shall
               have an Obligor that is not a local, state or federal
               governmental entity.

                      (xxviii) Chattel Paper. Each Contract constitutes "chattel
               paper" within the meaning of the applicable UCC.

                      (xxix) Priority of Interest. This Agreement creates a
               valid and continuing security interest (as defined in the UCC) in
               the Contracts in favor of the Issuer, which security interest
               subject to the Insurance Agreement is prior to all other Liens,
               and is enforceable as such as against creditors of and purchasers
               from the

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<PAGE>

               Seller. Other than the security interest granted to the Issuer
               pursuant to this Agreement and subject to the Insurance
               Agreement, the Seller has not pledged, assigned, sold, granted a
               security interest in, or otherwise conveyed any of the Contracts.
               The Seller has not authorized the filing of and is not aware of
               any financing statements against the Seller that include a
               description of collateral covering the Contracts other than any
               financing statement relating to the security interest granted to
               the Issuer hereunder, the security interest granted to the
               Indenture Trustee under the Indenture and the security interest
               granted to the Insurer under the Insurance Agreement or that has
               been terminated.

                      (xxx) Contract Characteristics as of the Closing Date. The
               representations and warranties made in this Section with respect
               to certain Contracts as of the Statistical Calculation Date shall
               also be true and correct in every material respect for all
               Contracts as of the Closing Date.

        Section 3.02. Purchase of Certain Contracts. The representations and
warranties of the Seller set forth in Section 3.01 shall survive delivery of the
Contract Documents to the Owner Trustee and shall continue until the termination
of this Agreement. Upon discovery by the Seller, the Master Servicer or the
Owner Trustee, as the case may be, that any of such representations and
warranties was incorrect as of the time made or that any of the Contract
Documents relating to any such Contract has not been properly executed by the
Obligor or contains a material defect or has not been received by the Owner
Trustee, such Person making such discovery shall give prompt notice to the other
such Persons. If any such defect, incorrectness or omission materially and
adversely affects the interest of the Noteholders, the Certificateholders, the
Indenture Trustee, the Owner Trustee, the Issuer or the Insurer, the Seller
shall, within 90 days after discovery thereof or receipt of notice thereof, cure
the defect or eliminate or otherwise cure the circumstances or condition in
respect of which such representation or warranty was incorrect as of the time
made. If the Seller is unable to do so, it shall purchase such Contract on the
Master Servicer Report Date next succeeding the end of such 90-day period from
the Issuer for an amount equal to the related Repurchase Amount in the manner
set forth in Section 5.04. Upon any such purchase, the Owner Trustee shall
execute and deliver such instruments of transfer or assignment, in each case
without recourse, as shall be necessary to vest in the Seller title to any
Contract purchased hereunder. The sole remedy of the Issuer, the Owner Trustee,
the Indenture Trustee or the Securityholders with respect to a breach of the
Seller's representations and warranties pursuant to Section 3.01 shall be to
enforce the Seller's obligation to repurchase Contracts pursuant to this
Section; provided, however, that the Seller shall indemnify the Owner Trustee,
the Indenture Trustee, the Insurer, the Issuer and the Securityholders against
all costs, expenses, losses, damages, claims and liabilities, including
reasonable fees and expenses of counsel, which may be asserted against or
incurred by any of them as a result of third-party claims arising out of the
events or facts giving rise to such breach.

        Section 3.03. Custody of Contract Files.

        (a) Subject to Sections 3.07, 7.04 and 8.01, the Owner Trustee hereby
irrevocably appoints the Master Servicer, and the Master Servicer hereby accepts
such appointment, to act as the agent of the Owner Trustee as custodian of the
Contract Documents and any and all other documents that the Master Servicer
shall keep on file, in accordance with its customary

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<PAGE>

procedures, relating to a Contract, Obligor or Financed Vehicle, which are
hereby constructively delivered to the Owner Trustee with respect to each
Contract:

               (i) the original of the Contract;

               (ii) documents evidencing the existence of physical damage
        insurance covering the Financed Vehicles;

               (iii) the original credit application fully executed by the
        Obligor; and

               (iv) the original certificate of title or such documents that the
        Master Servicer shall keep on file, in accordance with its customary
        procedures, evidencing the security interest of the Master Servicer in
        the Financed Vehicle.

        (b) The Master Servicer shall maintain the Contract Documents held by it
(by itself or through one or more Subservicers) in a file area physically
separate from the other installment sales contracts and installment loans owned
or serviced by it or any of its Affiliates, which area shall be clearly marked
to indicate the Issuer as the owner of, and the security interest of the
Indenture Trustee and the Insurer in, the Contract Documents and shall mark the
Contracts in the same manner; except that if the Indenture Trustee and the
Insurer have waived the requirement for such segregation and marking by notice
in writing to the Owner Trustee, the Indenture Trustee and the Master Servicer,
such file area may contain contract documents for other motor vehicle retail
installment sales contracts and installment loans owned or serviced by the
Master Servicer.

        The Master Servicer shall cause the electronic record of the Contracts
maintained by it to be clearly marked to indicate that the Contracts have been
sold to the Issuer and shall not in any way assert or claim an ownership
interest in the Contracts. It is intended by the Master Servicer's and the
Seller's agreement pursuant to this Section that the Owner Trustee shall be
deemed to have possession of the Contract Documents for purposes of Section
9-313 of the UCC of the state in which the Contract Documents are located.

        Section 3.04. Duties of Master Servicer as Custodian.

        (a) Safekeeping. The Master Servicer shall hold the Contract Files on
behalf of the Owner Trustee, the Indenture Trustee and the Insurer for the use
and benefit of all present and future Securityholders, and maintain such
accurate and complete accounts, records and computer systems pertaining to each
Contract File as shall enable the Issuer to comply with this Agreement. In
performing its duties as custodian the Master Servicer shall act with reasonable
care, using that degree of skill and attention that the Master Servicer
exercises with respect to the files relating to all comparable automobile
contracts that the Master Servicer owns or services for itself or others. The
Master Servicer shall conduct, or cause to be conducted, periodic physical
inspections of the Contract Files held by it under this Agreement and of the
related accounts, records and computer systems, and shall maintain them in such
a manner as shall enable the Owner Trustee, the Indenture Trustee and the
Insurer to verify the accuracy of the Master Servicer's record keeping. The
Master Servicer shall promptly report to the Owner Trustee, the Indenture
Trustee and the Insurer any failure on its part to hold the Contract Files and
maintain

                                       33
<PAGE>

its accounts, records and computer systems as herein provided and shall promptly
take appropriate action to remedy any such failure.

        (b) Maintenance of and Access to Records. The Master Servicer shall
maintain each Contract File at one of its offices specified in Schedule B hereto
or at such other location as shall be specified to the Owner Trustee, the
Indenture Trustee and the Insurer by 30 days' prior written notice. The Master
Servicer shall permit the Owner Trustee, the Indenture Trustee and the Insurer
or their respective duly authorized representatives, attorneys or auditors to
inspect the Contract Files and the related accounts, records and computer
systems maintained by the Master Servicer at such times as such Persons may
request.

        (c) Release of Documents. Upon instruction from the Indenture Trustee (a
copy of which shall be furnished to the Owner Trustee and the Insurer), the
Master Servicer shall release any Contract File to the Indenture Trustee, the
Indenture Trustee's agent, or the Indenture Trustee's designee, as the case may
be, at such place or places as the Indenture Trustee may designate, as soon as
practicable.

        (d) Monthly Reports. On the twentieth calendar day or, if such day is
not a Business Day, the next succeeding Business Day, of each month, other than
a month in which a Distribution Date occurs, commencing with the month next
succeeding the month of the Closing Date, the Master Servicer shall mail to the
Indenture Trustee and the Owner Trustee, by first class mail, a certificate of a
Servicing Officer stating (i) the Contract Number and outstanding principal
balance of each Contract that has become a Liquidated Contract since the
Business Day next preceding the date of the last certificate delivered pursuant
to this subsection (or since the Closing Date in the case of the first such
certificate); (ii) that all proceeds received in respect of such Contract have
been deposited in or credited to the Collection Account as required by Section
5.02; (iii) that, if such Contract has been the subject of a Prepayment pursuant
to clause (i) of the definition of the term "Prepayment" or is a Liquidated
Contract pursuant to clause (iii) of the definition of the term "Liquidated
Contract," all proceeds received in respect thereof have been deposited in or
credited to the Collection Account in accordance with Section 5.02; (iv) that,
if such Contract has been the subject of a Prepayment pursuant to clause (ii) of
the definition of the term "Prepayment," the correct Repurchase Amount has been
deposited in or credited to the Collection Account in accordance with Section
4.07 or 5.04; (v) that, if such Contract is a Liquidated Contract pursuant to
clause (ii) of the definition of the term "Liquidated Contract," there have been
deposited in or credited to the Collection Account the related Net Liquidation
Proceeds in accordance with Section 5.02; (vi) the current Aggregate Principal
Balance; (vii) Gross Charge-Off Amount for the most recent Due Period; (viii)
the total dollar amount of Delinquent Contracts; (ix) the total dollar amount of
all Contracts in respect of which the related Financed Vehicles have been
repossessed but have not been liquidated; (x) the Net Charge-Off Percentage for
the most recent Calculation Day; and (xi) the current Delinquency Percentage.
The information called for in clauses (vi) through (xi) above shall be presented
as of the Calculation Day in the month preceding the month in which such
information is required to be delivered

        (e) Title Documents. The Master Servicer shall deliver to the Indenture
Trustee, the Owner Trustee and the Insurer (i) within 120 days of the Closing
Date, a schedule of Title Documents for Financed Vehicles which, as of the
Closing Date did not show the Master Servicer as

                                       34
<PAGE>

first lienholder and (ii) within 180 days of the Closing Date, a schedule of
Title Documents for Financed Vehicles which as of the date prior to such
delivery do not show the Master Servicer as first lienholder and as to which the
Seller is obligated to repurchase pursuant to the provisions hereof.

        Section 3.05. Instructions; Authority to Act. The Master Servicer shall
be deemed to have received proper instructions (a copy of which shall be
furnished to the Owner Trustee and the Insurer) with respect to the Contract
Files upon its receipt of written instructions signed by a Responsible Officer
of the Indenture Trustee.

        Section 3.06. Indemnification. Subject to Section 8.02, the Master
Servicer shall indemnify the Issuer, the Owner Trustee, the Indenture Trustee,
the Insurer and the Securityholders for any and all liabilities, obligations,
losses, compensatory damages, payments, costs or expenses of any kind whatsoever
(including the reasonable fees and expenses of counsel) that may be imposed on,
incurred by or asserted against the Issuer, the Owner Trustee, the Indenture
Trustee, the Insurer, the Noteholders or the Certificateholders as the result of
any improper act or omission in any way relating to the maintenance and custody
by the Master Servicer of the Contract Files, or the failure of the Master
Servicer to perform its duties and service the Contracts in compliance with the
terms of this Agreement; provided, however, that the Master Servicer shall not
be liable to the Owner Trustee for any portion of any such amount resulting from
the willful misfeasance, bad faith or negligence of the Owner Trustee and the
Master Servicer shall not be liable to the Indenture Trustee for any portion of
any such amount resulting from the willful misfeasance, bad faith or negligence
of the Indenture Trustee. The Master Servicer shall also indemnify and hold
harmless the Issuer, the Trust Estate and the Securityholders against any taxes
that may be asserted at any time against any of them with respect to the
Contracts, including any sales, gross receipts, general corporation, personal
property, privilege or license taxes (but exclusive of federal or other income
taxes arising out of payments on the Contracts) and the costs and expenses in
defending against such taxes. The Master Servicer shall immediately notify the
Owner Trustee and the Indenture Trustee if a claim is made by a third party with
respect to the Contracts, shall assume, with the consent of the Owner Trustee
and the Indenture Trustee, the defense of any such claim, pay all expenses in
connection therewith, including counsel fees, and shall promptly pay, discharge
and satisfy any judgment or decree which may be entered against it or the
Issuer.

        Section 3.07. Effective Period and Termination. The Master Servicer's
appointment as custodian shall become effective as of the Cut-Off Date and shall
continue in full force and effect until terminated under this Section, upon the
termination of the Issuer or the repurchase of all of the Contracts by the
Seller, whichever is first to occur. If the Master Servicer shall resign in
accordance with the provisions of this Agreement or if all of the rights and
obligations of the Master Servicer shall have been terminated pursuant to
Section 8.01, the appointment of the Master Servicer as custodian shall be
terminated by the Indenture Trustee, by the Holders of Notes evidencing not less
than a majority of the Outstanding Amount of the Notes, voting together as a
single class, by the Owner Trustee, by Certificateholders evidencing not less
than a majority of the aggregate Certificate Percentage Interest, or by the
Insurer, in the same manner as the Indenture Trustee, the Owner Trustee, the
Insurer or such Holders may terminate the rights and obligations of the Master
Servicer pursuant to Section 8.01. As soon as practicable after any termination
of such appointment, the Master Servicer shall, at its own expense, deliver the

                                       35
<PAGE>

Contract Files to the Owner Trustee or its agent or as designated by the Owner
Trustee at such place or places as the Owner Trustee may reasonably designate
and shall cooperate in good faith to effect such delivery.

        Section 3.08. Nonpetition Covenant.

        (a) Neither the Seller nor the Master Servicer shall petition or
otherwise invoke the process of any court or government authority for the
purpose of commencing or sustaining a case against the Issuer under any federal
or state bankruptcy, insolvency or similar law or appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar official
of the Issuer or any substantial part of its property, or ordering the winding
up or liquidation of the affairs of the Issuer.

        (b) The Master Servicer shall not, nor cause the Seller to, petition or
otherwise invoke the process of any court or government authority for the
purpose of commencing or sustaining a case against the Seller under any federal
or state bankruptcy, insolvency or similar law or appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar official
of the Seller or any substantial part of its property, or ordering the winding
up or liquidation of the affairs of the Seller.

        Section 3.09. Collecting Title Documents Not Delivered at the Closing
Date. In the case of any Contract in respect of which written evidence from the
Dealer selling or transferring the related Financed Vehicle that the Title
Document for such Financed Vehicle showing the Master Servicer as first
lienholder has been applied for from the Registrar of Titles was delivered to
the Owner Trustee on the Closing Date in lieu of a Title Document, the Master
Servicer shall use its best efforts to collect such Title Document from the
Registrar of Titles as promptly as possible. If such Title Document showing the
Master Servicer as first lienholder is not received by the Master Servicer or
the related Subservicer within 180 days after the Closing Date, then the
representation and warranty in Section 3.01(b)(iii) in respect of such Contract
shall be deemed to have been incorrect in a manner that materially and adversely
affects the Certificateholders.

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<PAGE>

                                  ARTICLE FOUR

                    ADMINISTRATION AND SERVICING OF CONTRACTS

        Section 4.01. Duties of Master Servicer. The Master Servicer, acting
alone and/or through one or more Subservicers as provided in this Section,
shall, as agent for the Indenture Trustee, the Owner Trustee and the Insurer,
manage, service, administer and make collections on the Contracts. The Master
Servicer agrees that its servicing of the Contracts shall be carried out in
accordance with customary and usual procedures of financial institutions which
service motor vehicle retail installment sales contracts and installment loans
and, to the extent more exacting, the procedures used by the Master Servicer in
respect of such contracts serviced by it for its own account. In accordance with
the foregoing, the Master Servicer may, whenever an Obligor has become
delinquent or the Master Servicer believes an Obligor may become delinquent, in
order to preserve the ultimate collectability of amounts due on a Contract,
modify the payment schedule on any Contract by reducing the APR on such Contract
without the consent of the Insurer or any Rating Agency; provided, however, that
the new APR shall not be less than the sum of (i) the Class A-4A Rate and (ii)
the Servicing Fee Percent. In addition, in order to preserve the Trust Estate,
the Master Servicer may, without the consent of any Rating Agency or the
Insurer, reduce the principal amount of a Contract (i.e., write-down a portion
of the principal amount due on such Contract and, accordingly, lower the Monthly
P&I on such Contract) to the extent funds are available in the Spread Account to
cover such reduction; provided, however, the total amount of such modifications
pursuant to the immediately preceding sentence and this sentence and reductions
(i) may not affect more than 1% of the Original Pool Balance through the
Distribution Date nine months prior to the Class A-4 Final Scheduled
Distribution Date and (ii) during each three-month period between Distribution
Dates (or in the case of the first Distribution Date, from the Cut-Off Date to
such Distribution Date) shall not affect Contracts having an aggregate Principal
Balance greater than one-tenth of one percent of the Aggregate Principal Balance
at the beginning of such period. Any such modifications or reductions exceeding
such limits may be made only with the consent of the Insurer and each Rating
Agency. The Master Servicer may also extend the Maturity Date on a Contract in
accordance with Section 4.02. The Master Servicer's duties shall include
collection and posting of all payments, responding to inquiries of Obligors on
the Contracts, investigating delinquencies, sending payment coupons to Obligors,
reporting tax information to Obligors, accounting for collections, furnishing
monthly and annual statements to the Indenture Trustee, the Owner Trustee and
the Insurer with respect to distributions and filing applicable U.S. tax returns
for the Issuer on an annual basis, based on a tax year for the Issuer that is
the calendar year. The Master Servicer shall have, subject to the terms hereof,
full power and authority, acting alone, and subject only to the specific
requirements and prohibitions of this Agreement, to do any and all things in
connection with such managing, servicing, administration and collection that it
may deem necessary or desirable; provided, however, that the Master Servicer
shall commence repossession efforts in respect of any Financed Vehicle
respecting which the related Contract is four or more months delinquent. Without
limiting the generality of the foregoing, but subject to the provisions of this
Agreement, the Master Servicer is authorized and empowered by the Indenture
Trustee and the Owner Trustee to execute and deliver, on behalf of itself, the
Trust, the Insurer, the Noteholders, the Certificateholders, the Indenture
Trustee, the Owner Trustee or any of them, any and all instruments of
satisfaction or cancellation, or of partial or full release or discharge, and
all other comparable instruments, with respect to the Contracts or to the
Financed

                                       37
<PAGE>

Vehicles. The Owner Trustee shall furnish the Master Servicer all documents
necessary or appropriate to enable the Master Servicer to carry out its
servicing and administrative duties hereunder.

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

        The Master Servicer may enter into Subservicing Agreements with one or
more Subservicers approved by the Insurer for the servicing and administration
of certain of the Contracts (including holding the related Contract Files as
custodian). The Master Servicer shall notify each Rating Agency promptly if a
Subservicer is hired. References herein to actions taken or to be taken by the
Master Servicer in servicing the Contracts include actions taken or to be taken
by a Subservicer on behalf of the Master Servicer and the Insurer. Each
Subservicing Agreement will be upon such terms and conditions as are not
inconsistent with this Agreement and as the Master Servicer and the Subservicer
have agreed. With the approval of the Master Servicer and the Insurer, a
Subservicer may delegate its servicing obligations to third-party servicers, but
such Subservicer will remain obligated under the related Subservicing Agreement.
The Master Servicer and a Subservicer may enter into amendments thereto or
different forms of Subservicing Agreements; provided, however, that any such
amendments or different forms shall be consistent with and not violate the
provisions of this Agreement or materially adversely affect the rights of
Noteholders, Certificateholders or the Insurer hereunder.

        The Master Servicer shall be entitled to terminate any Subservicing
Agreement that may exist in accordance with the terms and conditions of such
Subservicing Agreement and without any limitation by virtue of this Agreement;
provided, however, that in the event of termination of any Subservicing
Agreement by the Master Servicer or the related Subservicer, the Master Servicer
shall either act directly as servicer of the related Contract or enter into a
Subservicing Agreement with a successor Subservicer approved by the Insurer
which will be bound by the terms of the related Subservicing Agreement.

        Notwithstanding any Subservicing Agreement, any of the provisions of
this Agreement relating to agreements or arrangements between the Master
Servicer or a Subservicer or reference to actions taken through such Persons or
otherwise, the Master Servicer shall remain obligated and liable to the
Indenture Trustee, the Owner Trustee and the Securityholders for the servicing
and administering of the Contracts in accordance with the provisions of this
Agreement without diminution of such obligation or liability by virtue of such
Subservicing Agreements or arrangements or by virtue of indemnification from a
Subservicer and to the same extent and under the same terms and conditions as if
the Master Servicer alone were servicing and administering the Contracts. The
Master Servicer shall be entitled to enter into an agreement with a Subservicer
for indemnification of the Master Servicer and nothing contained in this
Agreement shall be deemed to limit or modify such indemnification.

        Any Subservicing Agreement that may be entered into and any other
transactions or servicing arrangements relating to the Contracts involving a
Subservicer or an Affiliate of the Master Servicer in its capacity as such, and
not as an originator of Contracts, shall be deemed to

                                       38
<PAGE>

be between the Subservicer or such Affiliate, as the case may be, and the Master
Servicer alone, and none of the Indenture Trustee, the Owner Trustee, the
Noteholders nor the Certificateholders shall be deemed parties thereto and shall
have no claims, rights, obligations, duties or liabilities with respect to the
Subservicer except as set forth in the immediately succeeding paragraph;
provided that the Insurer may rely upon the representations and warranties of
the Subservicer contained therein.

        In the event the Master Servicer shall for any reason no longer be
acting as servicer under this Agreement (including, but not limited to, by
reason of a Servicer Default), the Indenture Trustee or its designee may, at the
sole discretion of the Indenture Trustee, thereupon assume all of the rights and
obligations of such Master Servicer under each Subservicing Agreement selected
by the Indenture Trustee in its sole discretion. In such event, the Indenture
Trustee, its designee or the successor servicer for the Indenture Trustee shall
be deemed to have assumed all of the Master Servicer's interest therein and to
have replaced the Master Servicer as a party to each such Subservicing Agreement
to the same extent as if such Subservicing Agreement had been assigned to the
assuming party except that the Master Servicer shall not thereby be relieved of
any liability or obligations under the Subservicing Agreement. The Master
Servicer shall, upon request of the Indenture Trustee but at the expense of the
Master Servicer, deliver to the assuming party all documents and records
relating to each such Subservicing Agreement and the Contracts then being
serviced and an accounting of amounts collected and held by it and otherwise use
its best efforts to effect the orderly and efficient transfer of the
Subservicing Agreement to the assuming party.

        The Master Servicer shall deposit in or credit to the Collection Account
within two Business Days of receipt all collections of Monthly P&I received on
or after the Cut-Off Date on or in respect of the Contracts together with the
proceeds of all Prepayments and any accompanying interest; provided, however,
that, to the extent any such installment of Monthly P&I or any such Prepayment
proceeds are received in respect of a Contract as to which there is an
outstanding and unreimbursed Advance or Advances, such installment or proceeds
shall, to the extent of any such unreimbursed Advance or Advances, be retained
by the Master Servicer in reimbursement of itself. The Master Servicer shall
likewise deposit in the Collection Account within two Business Days of receipt
all Net Liquidation Proceeds and Net Insurance Proceeds after deducting
therefrom the amount of any outstanding and unreimbursed Advances made by it in
respect of such Contract. The foregoing notwithstanding, the Master Servicer
may, in the event it determines that it has made a Nonrecoverable Advance or
Advances, reimburse itself from unrelated installments of Monthly P&I or
Prepayment proceeds to the extent it shall, concurrently with the withholding of
any such installment or proceeds from deposit in or credit to the Collection
Account as required above, furnish to the Indenture Trustee, the Owner Trustee
and the Insurer a certificate of a Servicing Officer setting forth the basis for
the Master Servicer's determination, the amount of and Contract with respect to
which such Nonrecoverable Advance was made and the installment or installments
or other proceeds respecting which reimbursement has been taken; provided,
however, that the Master Servicer must provide such certificate within three
months of such Nonrecoverable Advance or Advances. The foregoing requirements
for deposit in the Collection Account are exclusive, it being understood that
collections in the nature of late payment charges or extension fees or
collections allocable to payments to be made by the Master Servicer on behalf of
Obligors for payment of insurance premiums or similar items need

                                       39
<PAGE>

not be deposited in the Collection Account and may be retained by the Master
Servicer as additional servicing compensation or for application on behalf of
Obligors, as the case may be.

        With respect to payments of Monthly P&I made by Obligors to the Master
Servicer's lock box, the Master Servicer shall direct the Person maintaining the
lock box to deposit the amount collected on or in respect of the Contracts to
the Collection Account.

        In those cases where a Subservicer is servicing a Contract pursuant to a
Subservicing Agreement, the Master Servicer shall cause the Subservicer to remit
to the Master Servicer for deposit in the Collection Account, on a daily basis,
within two Business Days after receipt by the Subservicer, all proceeds of
Contracts and all Net Liquidation Proceeds and Net Insurance Proceeds received
by the Subservicer.

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

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

        The Master Servicer shall, or cause the Administrator to, prepare,
execute and deliver all certificates or other documents required to be delivered
by the Trust pursuant to the Sarbanes-Oxley Act of 2002 or the rules and
regulations promulgated thereunder.

        Section 4.02. Collection of Contract Payments. The Master Servicer shall
use its best efforts to collect all payments called for under the terms and
provisions of the Contracts as and when the same shall become due and shall use
its best efforts to cause each Obligor to make all payments in respect of his or
her Contract to the Master Servicer. Consistent with the foregoing, the Master
Servicer may in its discretion (i) waive any late payment charges in connection
with

                                       40
<PAGE>

delinquent payments on a Contract or prepayment charges and (ii) in order to
work out a default or an impending default due to the financial condition of the
Obligor, modify the payment schedule of a Delinquent Contract (subject to the
next sentence) or extend the Maturity Date of a Delinquent Contract by up to 90
days in the aggregate past the originally scheduled date of the last payment on
such Contract; provided, however, the Master Servicer shall not defer payments
more than three times over the life of such Contract; provided, further, that in
the case of any extension granted pursuant to clause (ii) the Master Servicer
makes an Advance in respect of such extension and in no event can the last
payment on such Contract be extended beyond the last day of the Due Period
ending immediately prior to the Class A-4 Final Scheduled Distribution Date. The
Master Servicer shall not extend the Maturity Date of a Contract except as
provided in clause (ii) of the preceding sentence and shall not modify any
Contracts except in accordance with the criteria and limitations specified in
Section 4.01.

        Section 4.03. Realization upon Defaulted Contracts and Liquidated
Contracts. The Master Servicer shall use its best efforts, consistent with the
servicing standard specified in Section 4.01, to repossess or otherwise convert
the ownership of the Financed Vehicle securing any Contract as to which no
satisfactory arrangements can be made for collection of delinquent payments.
Such servicing procedures may include reasonable efforts to realize upon any
recourse to Dealers and selling the Financed Vehicle at public or private sale.
In connection with such repossession or other conversion, the Master Servicer
shall follow such practices and procedures as it shall deem necessary or
advisable and as shall be normal and usual for prudent holders of motor vehicle
retail installment sales contracts and installment loans and as shall be in
compliance with all applicable laws, and, in connection with the repossession of
any Financed Vehicle or any Contract in default, may commence and prosecute any
proceedings in respect of such Contract in its own name or, if the Master
Servicer deems it necessary, in the name of the Owner Trustee or on behalf of
the Owner Trustee. The Master Servicer's obligations under this Section are
subject to the provision that, in the case of damage to a Financed Vehicle from
an uninsured cause, the Master Servicer shall not be required to expend its own
funds in repairing such Financed Vehicle unless it shall determine (i) that such
restoration will increase the proceeds of liquidation of the related Contract,
after reimbursement to itself for such expenses, and (ii) that such expenses
will be recoverable by it either as Liquidation Expenses or as expenses
recoverable under an applicable Insurance Policy. In the event that the Master
Servicer determines that, in its best judgment, further collection efforts by it
as to a Liquidated Contract will not result in the realization of additional Net
Liquidation Proceeds to the Trust, the Master Servicer may, in the name of the
Owner Trustee, and for the benefit of the Trust, sell the Liquidated Contract to
any party not affiliated with the Master Servicer free and clear of the rights
of the Issuer. The Master Servicer shall be responsible for all other costs and
expenses incurred by it in connection with any action taken in respect of a
Defaulted Contract; provided, however, that it shall be entitled to
reimbursement of such costs and expenses to the extent they constitute
Liquidation Expenses or expenses recoverable under an applicable Insurance
Policy. All Net Liquidation Proceeds, Net Insurance Proceeds and proceeds of the
sale of Contracts hereunder shall be deposited directly in or credited to the
Collection Account (without deposit in any intervening account) to the extent
required by Section 5.02.

        Section 4.04. Insurance. To the extent the Obligor fails to maintain a
comprehensive and collision insurance policy in an amount at least equal to the
lesser of (i) the actual cash value of the Financed Vehicle or (ii) the
principal amount due from the Obligor under the related

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Contract, the Master Servicer shall obtain the LDI Policy in respect of such
Financed Vehicle; provided, however, that the Master Servicer shall not be
required to maintain such insurance in respect of any Financed Vehicle as to
which the related Contract has an unpaid principal balance of less than $4,000
or the related Contract has six or fewer months remaining before its Maturity
Date.

        Section 4.05. Maintenance of Security Interests in Financed Vehicles.
The Master Servicer shall take such steps as are necessary to maintain
continuous perfection and priority of the security interest created by each
Contract in the related Financed Vehicle, including but not limited to,
obtaining the execution by the Obligors and the recording, registering, filing,
re-recording, re-registering and refiling of all security agreements, financing
statements, continuation statements or other instruments as are necessary to
maintain the security interest granted by Obligors under the respective
Contracts. The Owner Trustee and the Indenture Trustee each hereby authorizes
the Master Servicer to take such steps as are necessary to re-perfect such
security interest on behalf of the Issuer in the event of the relocation of a
Financed Vehicle or for any other reason.

        Section 4.06. Covenants, Representations and Warranties of the Master
Servicer. The Master Servicer hereby makes the following covenants,
representations and warranties on which (i) the Issuer is deemed to have relied
in acquiring the Contracts and (ii) the Insurer is deemed to have relied in
issuing the Note Policy. Such covenants, representations and warranties speak as
of the execution and delivery of this Agreement and as of the Closing Date, but
shall survive the sale, transfer and assignment of the Contracts to the Issuer
and the pledge thereof to the Indenture Trustee pursuant to the Indenture.

               (a) The Master Servicer covenants as to the Contracts:

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

                          (ii) Impairment. The Master Servicer shall not impair
               the rights of the Noteholders and Certificateholders in the
               Contracts.

                          (iii) Amendments. The Master Servicer shall not amend
               the terms of any Contract, except that extensions or
               modifications may be granted in accordance with Section 4.02.

                          (iv) Transfers. The Master Servicer may consent to the
               sale or transfer by an Obligor of any Financed Vehicle if the
               original Obligor under the related Contract remains liable under
               such Contract and the transferee assumes all of the Obligor's
               obligations thereunder.

                          (v)Security Interest. The Master Servicer shall
               maintain the perfection and priority of the Issuer's and the
               Indenture Trustee's security interests in the Contracts.

               (b) The Master Servicer represents, warrants and covenants:

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<PAGE>

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

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

                          (iii) Governmental Consents. The Master Servicer is
               not required to obtain the consent of any other party or consent,
               license, approval or authorization, or registration or
               declaration with, any governmental authority, bureau or agency in
               connection with the execution, delivery, performance, validity or
               enforceability of this Agreement, except (in each case) such as
               have been obtained and are in full force and effect.

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

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

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<PAGE>

               or governmental body so as to materially and adversely affect the
               transactions contemplated by the above-mentioned documents.

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

        Section 4.07. Repurchase of Contracts upon Breach of Covenant. The
Master Servicer or the Owner Trustee shall inform the other party and the
Indenture Trustee and the Insurer promptly, in writing, upon the discovery of
any breach pursuant to Section 4.02, 4.05 or 4.06. Unless the breach shall have
been cured within 30 days following such discovery, the Master Servicer shall
purchase any Contract materially and adversely affected by such breach. In
consideration of the purchase of such Contract, the Master Servicer shall remit
the Repurchase Amount in the manner specified in Section 5.04. The sole remedy
of the Issuer, the Owner Trustee, the Indenture Trustee, the Certificateholders
or the Noteholders with respect to a breach pursuant to Section 4.02, 4.05 or
4.06 shall be to require the Master Servicer to purchase Contracts pursuant to
this Section; provided, however, that the Master Servicer shall indemnify the
Owner Trustee, the Indenture Trustee, the Insurer, the Issuer and the
Securityholders against all costs, expenses, losses, damages, claims and
liabilities, including reasonable fees and expenses of counsel, which may be
asserted against or incurred by any of them as a result of third-party claims
arising out of the events or facts giving rise to such breach. The Owner Trustee
shall have no duty to conduct any affirmative investigation as to the occurrence
of any condition requiring the repurchase of any Contract pursuant to this
Section.

        Section 4.08. Servicing Compensation. As compensation for the
performance of its obligations under this Agreement and subject to the terms of
this Section, the Master Servicer shall be entitled to receive on each
Distribution Date the Servicing Fee. As servicing compensation in addition to
the Servicing Fee, the Master Servicer shall be entitled to retain all late
payment charges, extension fees and similar items paid in respect of Contracts.
The Master Servicer shall pay all expenses incurred by it in connection with its
servicing activities hereunder and shall not be entitled to reimbursement of
such expenses except to the extent provided in Section 4.03.

        Section 4.09. Reporting by the Master Servicer.

        (a) On each Master Servicer Report Date, the Master Servicer shall
transmit to the Owner Trustee, the Indenture Trustee, each Rating Agency, the
Swap Counterparty and the Insurer a statement, substantially in the form of
Exhibit D hereto (the "Distribution Date Statement"), setting forth with respect
to the next succeeding Distribution Date:

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

                  (ii) the Note Principal Distributable Amount for such
        Distribution Date;

                  (iii) the Net Collections for such Distribution Date;

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<PAGE>

                  (iv) the amount otherwise distributable to each Class of
        Noteholders that will be distributed to a different Class of Noteholders
        on such Distribution Date;

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

                  (vi) the Servicing Fee with respect to the related Due Period;

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

                  (viii) the aggregate amount of Monthly P&I which was due on
        the Contracts during the related Due Period and was delinquent as of the
        end of the related Due Period (any such payment of Monthly P&I being
        presumed to be delinquent to the extent that it was not deposited in or
        credited to the Collection Account during such Due Period);

                  (ix) the amount set forth in clause (viii) above which is
        being advanced concurrently with such Distribution Date Statement by the
        Master Servicer pursuant to Section 5.04, the amount of any such Advance
        being deposited in or credited to the Collection Account on such Master
        Servicer Report Date;

                  (x) the aggregate amount of any Nonrecoverable Advances
        deducted by the Master Servicer from amounts otherwise required to be
        deposited by the Master Servicer in the Collection Account during the
        related Due Period;

                  (xi) the Aggregate Net Liquidation Losses for the related Due
        Period;

                  (xii) the Delinquency Percentage and the Net Charge-Off
        Percentage for the most recent Calculation Day;

                  (xiii) the amount of Contracts which have had their APR or
        principal amount modified pursuant to Section 4.01 and the percentage
        that amount constitutes of the Original Principal Balance on a
        cumulative basis; in addition the aggregate Principal Balance of
        Contracts so modified as a percentage of the Aggregate Principal Balance
        for the most recent Distribution Date;

                  (xiv) the Note Deficiency Claim Amount, if any, for such
        Distribution Date, separately setting forth the amount thereof payable
        in respect of each Class of Notes;

                  (xv) the Note Policy Claim Amount, if any, for such
        Distribution Date, separately setting forth the amount thereof payable
        in respect of each Class of Notes;

                  (xvi) the Certificate Distributable Amount;

                  (xvii) the Net Swap Receipts and Net Swap Payments, if any;

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<PAGE>

                  (xviii) the sum of the Principal Balances of Delinquents
        Contracts;

                  (xix) the sum of the Principal Balance of Contracts that
        became Defaulted Contracts during the related Collection Period;

                  (xx) the Class Balance of each Class of Notes;

                  (xxi) the Aggregate Principal Balance at the beginning and end
        of the related Collection Period; and

                  (xxii) the amount distributable to the Certificateholders.

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

        (b) On each Master Servicer Report Date, the Master Servicer shall
deliver to the Owner Trustee, the Indenture Trustee, each Rating Agency and the
Insurer a report, in respect of the immediately preceding Due Period, setting
forth the following:

                  (i) the aggregate amount, if any, paid by or due from it for
        the purchase of Contracts which the Seller or the Master Servicer has
        become obligated to purchase pursuant to Section 3.02 or 4.07, or the
        Seller has elected to purchase pursuant to Section 9.01;

                  (ii) the net amount of funds which have been deposited in or
        credited to the Collection Account in respect of such Due Period after
        giving effect to all permitted deductions therefrom pursuant to Section
        5.02;

                  (iii) upon request of any of the Insurer, the Owner Trustee,
        the Indenture Trustee or a Rating Agency, with respect to each Contract
        that became a Liquidated Contract during such Due Period, the following
        information:

                      (A) its Contract Number;

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

                      (C) its Monthly P&I and Principal Balance as of the
               immediately preceding Distribution Date (or as of the Cut-Off
               Date in the case of the first Distribution Date); and

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

                  (iv) upon request of any of the Insurer, the Owner Trustee,
        the Indenture Trustee or a Rating Agency, the Contract Numbers, Monthly
        P&I, Principal Balances and

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<PAGE>

        Maturity Dates of all Contracts which became Defaulted Contracts during
        such Due Period;

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

                  (vi) any other information relating to the Contracts
        reasonably requested by the Owner Trustee, the Indenture Trustee, each
        Rating Agency or the Insurer.

        Section 4.10. Annual Statement as to Compliance. The Master Servicer
shall deliver to the Owner Trustee, the Indenture Trustee, each Rating Agency,
the Swap Counterparty and the Insurer, on or before 90 days after the end of
each fiscal year of the Master Servicer, beginning with the fiscal year ended
December 31, 2002, an Officers' Certificate of the Master Servicer stating that
(i) a review of the activities of the Master Servicer during the preceding
fiscal year (or since the Closing Date in the case of the first such Officers'
Certificate) and of its performance under this Agreement has been made under
such officers' supervision and (ii) to the best of such officers' knowledge,
based on such review, the Master Servicer has fulfilled all its obligations
under this Agreement throughout such year and that no default under this
Agreement has occurred and is continuing, or, if there has been a default in the
fulfillment of any such obligation, specifying each such default known to such
officer and the nature and status thereof. A copy of such certificate and the
report referred to in Section 4.11 may be obtained by any Certificateholder,
Noteholder or Note Owner by a request in writing to the Owner Trustee addressed
to the Owner Trustee Corporate Trust Office. Upon the telephone request of the
Owner Trustee, the Indenture Trustee will promptly furnish the Owner Trustee a
list of Noteholders as of the date specified by the Owner Trustee.

        Section 4.11. Annual Independent Certified Public Accountants' Report.
On or before 90 days after the end of the first fiscal year of the Master
Servicer which ends more than three months after the Closing Date and each
fiscal year thereafter, the Master Servicer at its expense shall cause a firm of
nationally-recognized independent certified public accountants (who may also
render other services to the Master Servicer) to furnish a report to the
Indenture Trustee, the Owner Trustee, each Rating Agency and the Insurer to the
effect that (i) they have audited the balance sheet of the Master Servicer as of
the last day of said fiscal year and the related statements of operations,
retained earnings and cash flows for such fiscal year and have issued an opinion
thereon, specifying the date thereof, (ii) they have also audited certain
documents and the records relating to the servicing of the Contracts and the
distributions on the Notes and the Certificates hereunder, (iii) their audit as
described under clauses (i) and (ii) above was made in accordance with generally
accepted auditing standards and accordingly included such tests of the
accounting records and such other auditing procedures as they considered
necessary in the circumstances and (iv) their audits described under clauses (i)
and (ii) above disclosed no exceptions which, in their opinion, were material,
relating to the servicing of such Contracts in accordance with this Agreement
and the making of distributions on the Notes and Certificates in accordance with
this Agreement, or, if any such exceptions were disclosed thereby, setting forth
such exceptions which, in their opinion, were material.

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<PAGE>

        Section 4.12. Access to Certain Documentation and Information Regarding
Contracts. The Master Servicer shall provide to the Insurer, the Indenture
Trustee and the Securityholders access to the Contract Files in such cases where
the Certificateholders or Noteholders shall be required by applicable statutes
or regulations to review such documentation. Access shall be afforded without
charge, but only upon reasonable request and during the normal business hours at
the designated offices of the Master Servicer and each related Subservicer, if
any. Nothing in this Section shall affect the obligation of the Master Servicer
to observe any applicable law prohibiting disclosure of information regarding
the Obligors and the failure of the Master Servicer to provide access to
information as a result of such obligation shall not constitute a breach of this
Section.

        Section 4.13. Fidelity Bond. The Master Servicer shall maintain a
fidelity bond in such form and amount as is customary for banks acting as
custodian of funds and documents in respect of mortgage loans or consumer
contracts on behalf of institutional investors.

        Section 4.14. Indemnification; Third Party Claims. Subject to Section
8.02, the Master Servicer agrees to indemnify and hold the Indenture Trustee,
the Owner Trustee and the Securityholders harmless against any and all claims,
losses, penalties, fines, forfeitures, reasonable legal fees and related costs,
judgments and any reasonable other costs, fees and expenses that the Indenture
Trustee, the Owner Trustee, the Noteholders or the Certificateholders may
sustain because of the failure of the Master Servicer to perform its duties and
service the Contracts in compliance with the terms of this Agreement. The Master
Servicer shall immediately notify the Indenture Trustee and the Owner Trustee if
a claim is made by a third party with respect to the Contracts, assume, with the
consent of the Indenture Trustee and the Owner Trustee, the defense of any such
claim and pay all expenses in connection therewith, including counsel fees, and
promptly pay, discharge and satisfy any judgment or decree which may be entered
against it or Indenture Trustee, the Owner Trustee, the Noteholders or the
Certificateholders.

        Section 4.15. Maintenance of the Interest Rate Swap Agreement. As long
as the Class A-2, the Class A-3B Notes and the Class A-4B Notes are Outstanding,
the Master Servicer shall cause the Trust to maintain in effect an interest rate
swap agreement acceptable to the Insurer with respect to each of the Class A-2,
the Class A-3B Notes and the Class A-4B Notes; provided, that, the issuance of
the Note Policy on the Closing Date shall demonstrate the Insurer's approval of
the Interest Rate Swap Agreement.

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                                  ARTICLE FIVE

          DISTRIBUTIONS; SPREAD ACCOUNT; STATEMENTS TO SECURITYHOLDERS

        Section 5.01. Establishment of Trust Accounts.

        (a) Prior to the Closing Date, the Master Servicer shall open, at a
depository institution (which may be the Indenture Trustee or the Bank), the
following accounts (the "Trust Accounts"):

                  (i) an account in the name of the Indenture Trustee (the
        "Collection Account"), bearing a designation clearly indicating that the
        funds deposited therein are held for the benefit of the Securityholders;

                  (ii) an account in the name of the Indenture Trustee (the
        "Spread Account"), bearing a designation clearly indicating that the
        funds deposited therein are held for the benefit of the Securityholders;

                  (iii) an account in the name of the Indenture Trustee (the
        "Note Distribution Account") bearing a designation clearly indicating
        that the funds deposited therein are held for the benefit of the
        Noteholders; and

                  (iv) an account in the name of the Owner Trustee (the
        "Certificate Distribution Account") bearing a designation clearly
        indicating that the funds deposited therein are held for the benefit of
        the Certificateholders.

        The Trust Accounts shall be Eligible Accounts and relate solely to the
Securities and to the Contracts and Eligible Investments. The Master Servicer
shall give the Indenture Trustee, the Owner Trustee and the Insurer at least
five Business Days' written notice of any change in the location of any Trust
Account and any related account identification information. All monies deposited
in or credited to, from time to time, the Trust Accounts shall be part of the
Trust Estate and all monies deposited in or credited to, from time to time, the
Collection Account, the Spread Account, the Certificate Distribution Account and
the Note Distribution Account shall be invested by the Indenture Trustee in
Eligible Investments pursuant to Section 5.01(b).

        (b) All funds in the Collection Account, the Spread Account, the Note
Distribution Account and the Certificate Distribution Account shall be invested
by the Indenture Trustee in Eligible Investments. Unless and until the RIC is no
longer an Eligible Investment, all funds in such Trust Accounts, in each case
that are available for investment in Eligible Investments, shall be invested in
the RIC. If the RIC is no longer an Eligible Investment then, subject to the
limitations set forth herein, the Master Servicer may direct the Indenture
Trustee in writing to invest funds in the foregoing Trust Accounts in Eligible
Investments other than the RIC; provided that in the absence of such directions
from the Master Servicer, the Insurer may so direct the Indenture Trustee. All
such investments shall be in the name of the Indenture Trustee for the benefit
of the Noteholders and the Certificateholders, as applicable. All income or
other gain from investment of monies deposited in or credited to the Collection
Account (including without limitation the RIC Reinvestment Earnings) shall be
deposited in or credited to the Collection Account immediately upon receipt, and
any loss resulting from such investment shall

                                       49
<PAGE>
be charged to the Collection Account. All income or other gain from investment
of monies deposited in or credited to the Spread Account (including without
limitation the RIC Reinvestment Earnings) shall be deposited in or credited to
the Spread Account immediately upon receipt, and any loss resulting from such
investment shall be charged to the Spread Account. All income or other gain from
investment of monies deposited in or credited to the Note Distribution Account
(including without limitation the RIC Reinvestment Earnings) shall be deposited
in or credited to the Note Distribution Account immediately upon receipt, and
any loss resulting from such investment shall be charged to the Note
Distribution Account. All income or other gain from investment of monies
deposited in or credited to the Certificate Distribution Account (including
without limitation the RIC Reinvestment Earnings) shall be deposited in or
credited to the Certificate Distribution Account immediately upon receipt, and
any loss resulting from such investment shall be charged to the Certificate
Distribution Account. The maximum permissible maturities of any investments of
funds in the Collection Account, the Spread Account, the Note Distribution
Account and the Certificate Distribution Account on any date shall not be later
than one Business Day immediately preceding the Distribution Date next
succeeding the date of such investment; provided, however, that such funds may
be invested by the Indenture Trustee in Eligible Investments (other than the
RIC) that mature on the Business Day before the Distribution Date, or, in the
case of Commercial Paper or Proprietary Funds, that mature on the Distribution
Date for a period not to exceed one Business Day. No investment in Eligible
Investments may be sold prior to its maturity and all investments in Proprietary
Funds shall be for a period not to exceed one Business Day.

        (c)

                  (i) The Indenture Trustee shall possess all right, title and
        interest in all funds on deposit from time to time in the Trust Accounts
        and in all proceeds thereof (including all income thereon) and all such
        funds, investments, proceeds and income shall be part of the Trust
        Estate. The Trust Accounts, other than the Certificate Distribution
        Account, shall be under the sole dominion and control of the Indenture
        Trustee for the benefit of the Noteholders and the Certificateholders,
        as the case may be. The Certificate Distribution Account shall be in the
        name of the Owner Trustee for the benefit of the Certificateholders. If,
        at any time, any of the Trust Accounts ceases to be an Eligible Account,
        the Indenture Trustee (or the Master Servicer on its behalf) shall
        within ten Business Days (or such longer period, not to exceed 30
        calendar days, as to which each Rating Agency may consent) establish a
        new Trust Account as an Eligible Account and shall transfer any cash
        and/or any investments to such new Trust Account.

                  (ii) With respect to the Trust Account Property, the Indenture
        Trustee agrees, by its acceptance hereof, that:

                      (A) any Trust Account Property that is held in deposit
               accounts shall be held solely in the Eligible Accounts, subject
               to the last sentence of Section 5.01(c)(i); and each such
               Eligible Account shall be subject to the exclusive custody and
               continuous control of the Indenture Trustee within the meaning of
               Section 9-104(a) of the applicable UCC, and the Indenture Trustee
               shall have sole signature authority with respect thereto;

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<PAGE>

                      (B) any Trust Account Property that constitutes Physical
               Property shall be delivered to the Indenture Trustee in
               accordance with paragraph (i) of the definition of the term
               "Delivery" and shall be held, pending maturity or disposition,
               solely by the Indenture Trustee or a Financial Intermediary
               acting solely for the Indenture Trustee;

                      (C) any Trust Account Property that is a book-entry
               security held through the Federal Reserve System pursuant to
               Federal book-entry regulations shall be delivered in accordance
               with paragraph (ii) of the definition of the term "Delivery" and
               shall be maintained by the Indenture Trustee, pending maturity or
               disposition, through continued book-entry registration of such
               Trust Account Property as described in such paragraph; and

                      (D) any Trust Account Property that is an "uncertificated
               security" under Article Eight of the UCC and that is not governed
               by clause (C) above shall be delivered to the Indenture Trustee
               in accordance with paragraph (iii) of the definition of the term
               "Delivery" and shall be maintained by the Indenture Trustee,
               pending maturity or disposition, through continued registration
               of the Indenture Trustee's (or its nominee's) ownership of such
               security.

                  (iii) The Master Servicer shall have the power, revocable by
        the Indenture Trustee or by the Owner Trustee with the consent of the
        Indenture Trustee, to instruct the Indenture Trustee to make withdrawals
        and payments from the Trust Accounts for the purpose of permitting the
        Master Servicer or the Owner Trustee to carry out its respective duties
        hereunder or permitting the Indenture Trustee to carry out its duties
        under the Indenture.

        Section 5.02. Collections; Realization Upon Note Policy; Net Deposits.

        (a) Subject to Section 5.03 and subsection (d), the Master Servicer
shall remit or credit all payments by the Obligors on the Contracts, all
payments on behalf of Obligors on the Contracts and all Net Liquidation Proceeds
and Net Insurance Proceeds to the Collection Account (within two Business Days
as specified in Section 4.01); provided that the Master Servicer shall retain
from collection of late payments and Net Liquidation Proceeds or Net Insurance
Proceeds in respect of a Contract an amount equal to previously unreimbursed
Advances in respect of such Contract made pursuant to Section 5.04.

        (b) Not later than 12:00 p.m., New York City time, on the fifth Business
Day prior to each Distribution Date, based on the information set forth in the
related Distribution Date Statement to the extent that there are insufficient
funds to make the distributions required to be made to each Class of Notes as
described in Sections 5.05 and 5.06, the Master Servicer shall deliver to the
Indenture Trustee, with a copy to the Insurer, the Owner Trustee and the Fiscal
Agent, if any, by hand delivery, telex or facsimile transmission, a written
notice (a "Deficiency Notice") specifying the Note Deficiency Claim Amount, if
any, for such Distribution Date, separately identifying the amount of the
applicable Note Deficiency Claim Amount payable in respect of each Class of
Notes. Such Deficiency Notice shall direct the Indenture Trustee to

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remit such Note Deficiency Claim Amount (to the extent of funds then on deposit
in the Spread Account are insufficient) to the Indenture Trustee for deposit in
the Note Distribution Account.

        (c) Not later than 12:00 p.m., New York City time, on the fourth
Business Day prior to each Distribution Date, the Indenture Trustee shall make a
claim under the Note Policy for any Note Policy Claim Amount for such
Distribution Date by delivering to the Insurer and the Fiscal Agent, if any,
with a copy to the Master Servicer, by hand delivery, telex or facsimile
transmission, a claim for the related Note Policy Claim Amount, as the case may
be. In making any such claim, the Owner Trustee or the Indenture Trustee shall
comply with all the terms and conditions of the related Policy. The notice of
such claim shall direct the Insurer to remit such Note Policy Claim Amount to
the Owner Trustee or the Indenture Trustee for deposit in the Note Distribution
Account.

        (d) So long as the Master Servicer is WFS, the Master Servicer shall
have the right, on a basis not more frequently than once per month (although
deposits shall be made into the Collection Account within two Business Days
pursuant to Section 4.01), to deduct from amounts received that are otherwise
required to be deposited in or credited to the Collection Account and, to the
extent such amounts are insufficient, to require that the Indenture Trustee
withdraw and deliver to it from the Collection Account, amounts due to be paid
hereunder to the Master Servicer or to the Seller after giving effect to
application of the payment priorities specified in this Article for the month
(or other applicable period), and to pay such amounts to itself as Master
Servicer or to the Seller, as the case may be. Notwithstanding the foregoing,
the Master Servicer shall maintain the records and accounts for such deposits
and credits on a gross basis.

        Section 5.03. Application of Collections. On or prior to each
Calculation Day, all collections for the related month shall be applied by the
Master Servicer as follows: with respect to each Contract (including a Defaulted
Contract), payments by or on behalf of an Obligor shall be applied first to late
payment and extension fees, second to interest accrued on the Contract, third to
principal due on the Contract and fourth to administrative charges, if any. Any
excess shall be applied to prepay the principal balance of the Contract.

        Section 5.04. Advances and Nonrecoverable Advances; Repurchase Amounts.

        (a) If, as of the end of any Due Period, one or more payments of Monthly
P&I due under any Contract (other than a Liquidated Contract) Outstanding at the
end of such Due Period shall not have been received by the Master Servicer and
deposited in or credited to the Collection Account pursuant to Section 5.02(a),
the Master Servicer shall make, concurrently with the furnishing of the related
Distribution Date Statement to the Indenture Trustee and the Owner Trustee, the
Advance for such Due Period by depositing in or crediting to the Collection
Account with respect to each Contract 30 days of interest on the Principal
Balance of such Contract at a rate equal to the sum of (i) the Class A-4A Rate
and (ii) the Servicing Fee Percent for each month that the related Monthly P&I
is delinquent at the end of such Due Period. The Master Servicer shall account
for such deposit or credit in accordance with Section 4.01. The foregoing
notwithstanding, the Master Servicer shall not make an Advance in respect of a
Contract if the Master Servicer shall have determined that any such Advance, if
made, would constitute a Nonrecoverable Advance. Any such determination shall be
evidenced by an

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Officers' Certificate furnished to the Indenture Trustee, the Owner Trustee and
the Insurer setting forth the basis for such determination.

        (b) If the Master Servicer determines that it has made a Nonrecoverable
Advance or Advances, the Master Servicer shall reimburse itself, without
interest, from unrelated installments of Monthly P&I or Prepayment proceeds to
the extent it shall, concurrently with the withholding of any such installment
or proceeds from deposit in or credit to the Collection Account as required by
Section 5.02, furnish to the Indenture Trustee, the Owner Trustee and the
Insurer a certificate of a Servicing Officer setting forth the basis for the
Master Servicer's determination, the amount of, and Contract with respect to
which, such Nonrecoverable Advance was made and the installment or installments
or other proceeds respecting which reimbursement has been taken; provided,
however, that the Master Servicer must provide such certificate within three
months of such Nonrecoverable Advance or Advances.

        (c) The Master Servicer or the Seller, as the case may be, shall remit
or credit to the Collection Account the aggregate Repurchase Amount with respect
to Repurchased Contracts on the Master Servicer Report Date next succeeding the
last day of the related cure period specified in Section 3.02 or 4.07, as the
case may be. In addition, the Master Servicer and the Seller shall deposit or
cause to be deposited in the Collection Account the aggregate Repurchase Amount
with respect to Repurchased Contracts.

        (d) The Master Servicer and the Seller shall deposit or caused to be
deposited into the Collection Account the Aggregate Repurchase Amount of
Contracts purchased pursuant to Section 9.01(a).

        Section 5.05. Distributions.

        (a) On each Distribution Date, the Master Servicer shall instruct the
Indenture Trustee (based on the information contained in the Distribution Date
Statement delivered on the related Master Servicer Report Date pursuant to
Section 4.09) to make the following deposits and distributions for receipt by
the Master Servicer or deposit in the applicable account by 11:00 a.m. (New York
time), to the extent of the Net Collections for such Distribution Date, in the
following amounts and order of priority (or, if the Notes have been accelerated
upon an Event of Default, in the amounts and priority set forth in Section
2.07(e) of the Indenture):

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

                  (ii) to the Swap Counterparty, any unpaid Net Swap Payments,
        including any unpaid Net Swap Payments with respect to one or more Due
        Periods;

                  (iii) to the Indenture Trustee, any accrued and unpaid fees
        and expenses payable to the Indenture Trustee, and to the Owner Trustee,
        any accrued and unpaid fees and expenses payable to the Owner Trustee,
        in each case to the extent such fees and expenses have not been
        previously paid by the Master Servicer;

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                  (iv) to the Note Distribution Account, the Note Interest
        Distributable Amount for each Class of Notes, for payment of interest on
        each Class of Notes, pro rata, in proportion to their respective
        Outstanding Amounts;

                  (v) to the Note Distribution Account, the Note Principal
        Distributable Amount, (which amount includes, if such Distribution Date
        is a Note Final Scheduled Distribution Date, the remaining Outstanding
        Amount of the related Class of Notes), for payment on principal on the
        Notes, first to the Holders of the Class A-1 Notes until the Outstanding
        Amount of the Class A-1 Notes has been reduced to zero, second to the
        Holders of the Class A-2 Notes until the Outstanding Amount of the Class
        A-2 Notes has been reduced to zero, third to the Holders of the Class
        A-3A Notes and the Class A-3B Notes, pro rata, in proportion to their
        respective Outstanding Amounts, until the Outstanding Amount of each of
        the Class A-3A Notes and the Class A-3B Notes has been reduced to zero;
        and fourth to the Holders of the Class A-4A Notes and the Class A-4B
        Notes, pro rata, in proportion to their respective Outstanding Amounts,
        until the Outstanding Amount of each of the Class A-4A Notes and the
        Class A-4B Notes has been reduced to zero;

                  (vi) from Net Collections to the Swap Counterparty, any Swap
        Termination Payments not paid to it pursuant to clause (ii) above; and

                  (vii) to the Insurer, any Unreimbursed Insurer Amounts.

        (b) On each Distribution Date, the Master Servicer shall instruct the
Indenture Trustee (based on the information contained in the Distribution Date
Statement delivered on the related Master Servicer Report Date pursuant to
Section 4.09), to distribute any excess amounts remaining from Net Collections
after making the distributions described in Section 5.05(a) to the Spread
Account. On each Distribution Date, the Master Servicer shall instruct the
Indenture Trustee to distribute the Excess Spread Amount pursuant to Section
5.06(b).

        (c) To the extent that on any Distribution Date the amount on deposit in
the Note Distribution Account (after giving effect to any deposits thereto on
such Distribution Date) is less than the Note Distributable Amount, Noteholders
shall be entitled to receive distributions in respect of such deficiency first,
from amounts on deposit in the Spread Account pursuant to a Deficiency Notice;
and second, if such amounts are still insufficient, from a claim made under the
Note Policy for the Note Policy Claim Amount pursuant to Section 5.02(c).

        Section 5.06. Spread Account.

        (a) On or prior to the Closing Date, WFSRC shall deposit the Spread
Account Initial Amount into the Spread Account. The Spread Account will be held
for the benefit of the Securityholders and the Insurer in order to effectuate
the subordination of the rights of the Securityholders to the extent described
above.

        (b) On each Calculation Day and Distribution Date, the Master Servicer
shall instruct the Indenture Trustee to distribute the Excess Spread Amount, (i)
first, to the Insurer, to the extent of any Unreimbursed Insurer Amounts, (ii)
second, to WFSRC until WFSRC has received full payment of the Spread Account
Initial Deposit and (iii) third, on a Calculation Day that is

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not a Distribution Date, all remaining funds to the Certificateholders in
accordance with their Certificate Percentage Interests and in the case of a
Distribution Date, to the Certificate Distribution Account for distribution to
Certificateholders in accordance with Section 5.02 of the Trust Agreement. Upon
any such distribution to the Insurer, neither the Seller nor the Securityholders
will have further rights in, or claims to, such amounts.

        (c) Amounts held in the Spread Account shall be invested in the manner
specified in Section 5.01(b), and such investments shall be made in accordance
with written instructions from the Master Servicer; provided that, if the
Indenture Trustee does not receive any such written instructions prior to any
date on which an investment decision must be made, the Indenture Trustee shall
invest such amounts held in the Spread Account in Eligible Investments
consisting of commercial paper given the highest rating by each Rating Agency at
the time of such investment. All such investments shall be made in the name of
the Indenture Trustee or its nominee and such investments shall not be sold or
disposed of prior to their maturity.

        (d) Upon termination of the Issuer pursuant to Section 9.01, any amounts
on deposit in the Spread Account, after payments of amounts due to the
Securityholders and the Insurer (if there exists any Unreimbursed Insurer
Amounts), will be distributed first, to WFSRC until WFSRC has received full
repayment of the Spread Account Initial Deposit and second, to the Certificate
Distribution Account for distribution to Certificateholders in accordance with
the Section 5.02 of the Trust Agreement.

        Section 5.07. Statements to Securityholders.

        (a) On each Distribution Date, (i) the Indenture Trustee shall include
with each distribution to each Noteholder of record as of the related Record
Date and (ii) the Owner Trustee shall include with each distribution to each
Certificateholder of record as of the related Record Date a statement, prepared
by the Master Servicer, based on the information in the Distribution Date
Statement furnished pursuant to Section 4.09, setting forth for such
Distribution Date the following information as of the related Record Date or
such Distribution Date, as the case may be:

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

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

                  (iii) the Aggregate Principal Balance as of the close of
        business on the last day of such Due Period;

                  (iv) the amount of the Servicing Fee paid to the Master
        Servicer with respect to the related Due Period;

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

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                  (vi) the Note Pool Factor for each Class of Notes as of such
        Distribution Date, after giving effect to payments allocated to
        principal reported under clause (i) above;

                  (vii) the Certificate Distributable Amount; and

                  (viii) the amount on deposit in the Spread Account on such
        Distribution Date, after giving effect to distributions made on such
        Distribution Date, and the change in such balance from the immediately
        preceding Distribution Date.

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

        (b) Within a reasonable period of time after the end of each calendar
year, but not later than the latest date permitted by law, the Indenture Trustee
shall mail to each Person who at any time during such calendar year shall have
been a Holder of a Note a statement or statements, prepared by the Master
Servicer, which in the aggregate contain the sum of the amounts set forth in
clauses (i), (ii), (iv) and (v) above for such calendar year or, in the event
such Person shall have been a Holder of a Note during a portion of such calendar
year, for the applicable portion of such year, for the purposes of such
Noteholder's preparation of federal income tax returns. In addition, the Master
Servicer shall furnish to the Indenture Trustee for distribution to such Person
at such time any other information necessary under applicable law for the
preparation of such income tax returns.

        Section 5.08. Calculation of the Class A-2 Rate, Class A-3B Rate and
Class A-4B Rate. With respect to the Class A-2 Notes, the Class A-3B Notes and
Class A-4B Notes, on each LIBOR Determination Date, the Indenture Trustee shall
determine the LIBOR Rate for the Interest Period commencing on such Distribution
Date and inform the Master Servicer (at the facsimile number given to the
Indenture Trustee in writing) of such rates. If necessary to calculate the LIBOR
Rate, the Indenture Trustee will, in a timely manner, request the principal
London office of each Reference Bank to provide a quotation of its rates. On or
prior to each LIBOR Determination Date, the Indenture Trustee shall determine
the Interest Rate for the Class A-2 Notes, the Class A-3B Notes and Class A-4B
Notes for the related Distribution Date.

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                                   ARTICLE SIX

                                   THE SELLER

        Section 6.01. Corporate Existence. During the term of this Agreement,
the Seller will keep in full force and effect its existence, rights and
franchises as a corporation under the laws of the jurisdiction of its
incorporation 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 Agreement, the other Basic
Documents and each other instrument or agreement necessary or appropriate to the
proper administration of this Agreement and the transactions contemplated
hereby. In addition, all transactions and dealings between the Seller and its
Affiliates will be conducted on an arm's-length basis.

        Section 6.02. Liability of Seller; Indemnities. The Seller shall be
liable in accordance herewith only to the extent of the obligations specifically
undertaken by such Seller under this Agreement.

        The Seller shall indemnify, defend and hold harmless the Issuer, the
Owner Trustee, the Indenture Trustee and the Master Servicer from and against
any taxes that may at any time be asserted against any such Person with respect
to the transactions contemplated herein and in the other Basic Documents,
including any sales, gross receipts, general corporation, tangible personal
property, privilege or license taxes (but, in the case of the Issuer, not
including any taxes asserted with respect to, and as of the date of, the sale of
the Contracts to the Issuer or the issuance and original sale of the Securities,
or asserted with respect to ownership of the Contracts, or federal or other
income taxes arising out of distributions on the Certificates or the Notes) and
costs and expenses in defending against the same.

        The Seller shall indemnify, defend and hold harmless the Issuer, the
Owner Trustee, the Indenture Trustee and the Securityholders from and against
any loss, liability or expense incurred by reason of such Seller's willful
misfeasance, bad faith or negligence (other than errors in judgment) in the
performance of its duties under this Agreement, or by reason of reckless
disregard of its obligations and duties under this Agreement.

        The Seller shall indemnify, defend and hold harmless the Issuer, the
Owner Trustee and the Indenture Trustee from and against all costs, expenses,
losses, claims, damages and liabilities arising out of or incurred in connection
with the acceptance or performance of the trusts and duties herein and, in the
case of the Owner Trustee, in the Trust Agreement and, in the case of the
Indenture Trustee, in the Indenture, except to the extent that such cost,
expense, loss, claim, damage or liability, in the case of (i) the Owner Trustee,
shall be due to the willful misfeasance, bad faith or negligence of the Owner
Trustee or shall arise from the breach by the Owner Trustee of any of its
representations or warranties set forth in Section 7.03 of the Trust Agreement,
or (ii) the Indenture Trustee, shall be due to the willful misfeasance, bad
faith or negligence of the Indenture Trustee.

        Indemnification under this Section shall include, without limitation,
reasonable fees and expenses of counsel and expenses of litigation. If the
Seller shall have made any indemnity payments pursuant to this Section and the
Person to or on behalf of whom such payments are

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made thereafter shall collect any of such amounts from others, such Person shall
promptly repay such amounts to such Seller, without interest.

        Section 6.03. Merger or Consolidation of, or Assumption of the
Obligations of, the Seller; Certain Limitations.

        (a) The Seller shall not consolidate with nor merge into any other
corporation or convey, transfer or lease substantially all of its assets as an
entirety to any Person unless the corporation formed by such consolidation or
into which such Seller has merged or the Person which acquires by conveyance,
transfer or lease substantially all the assets of the Seller as an entirety, can
lawfully perform the obligations of the Seller hereunder and executes and
delivers to the Insurer, the Owner Trustee and the Indenture Trustee an
agreement in form and substance reasonably satisfactory to the Owner Trustee,
the Indenture Trustee and the Insurer, which contains an assumption by such
successor entity of the due and punctual performance and observance of each
covenant and condition to be performed or observed by the Seller under this
Agreement. The Seller shall provide notice of any merger, consolidation or
succession pursuant to this Section to each Rating Agency and will deliver to
the Insurer, the Owner Trustee and the Indenture Trustee a letter from each
Rating Agency to the effect that such merger, consolidation or succession will
not result in a qualification, downgrading or withdrawal of its then-current
ratings of each Class of Notes. The Seller and WFS each shall maintain separate
corporate offices.

        (b)

                  (i) Subject to paragraph (ii) below, the purpose of the Seller
        shall be to engage in any lawful activity for which a corporation may be
        organized under the laws of California Revised Statutes.

                  (ii) Notwithstanding paragraph (b)(i) above, the actual
        business activities of the Seller shall be limited to those activities
        incident to and necessary or convenient to accomplish the following
        purposes: (A) to acquire, own, hold, sell, transfer, assign, pledge,
        finance, refinance and otherwise deal with, retail installment sales
        contracts and installment loans secured by automobiles and light duty
        trucks (the "Vehicle Receivables"); (B) to authorize, issue, sell and
        deliver one or more series of obligations, consisting of one or more
        classes of notes, certificates or other securities (the "Offered
        Securities") that are collateralized by or evidence an interest in
        Vehicle Receivables and are rated in an investment grade category by at
        least one nationally recognized statistical rating agency; and (C) to
        negotiate, authorize, execute, deliver and assume the obligations of any
        agreement relating to the activities set forth in clauses (A) and (B)
        above, including but not limited to any pooling and servicing agreement,
        indenture, reimbursement agreement, credit support agreement,
        receivables purchase agreement or underwriting agreement or to engage in
        any lawful activity which is incidental to the activities contemplated
        by any such agreement. So long as any outstanding debt of the Seller or
        Offered Securities are rated by any nationally recognized statistical
        rating organization, such Seller shall not issue notes or otherwise
        incur debt unless (1) the Seller has made a written request to the
        related nationally recognized statistical rating organization to issue
        notes or incur borrowings which notes or borrowings are rated by

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        the related nationally recognized statistical rating organization the
        same as or higher than the rating afforded such debt or securities or
        (2) such notes or borrowings (a) are fully subordinated (and which shall
        provide for payment only after payment in respect of all outstanding
        rated debt and/or Offered Securities) or are nonrecourse against any
        assets of the Seller other than the assets pledged to secure such notes
        or borrowings, (b) do not constitute a claim against the Seller in the
        event such assets are insufficient to pay such notes or borrowings and
        (c) where such notes or borrowings are secured by the rated debt or
        Offered Securities, are fully subordinated (and which shall provide for
        payment only after payment in respect of all outstanding rated debt
        and/or Offered Securities) to such rated debt or Offered Securities.

        (c) Notwithstanding any other provision of this Section and any
provision of law, the Seller shall not do any of the following:

                  (i) engage in any business or activity other than as set forth
        in clause (b) above;

                  (ii) without the affirmative vote of a majority of the members
        of the Board of Directors of the Seller (which must include the
        affirmative vote of at least two duly appointed Independent directors)
        (A) dissolve or liquidate, in whole or in part, or institute proceedings
        to be adjudicated bankrupt or insolvent, (B) consent to the institution
        of bankruptcy or insolvency proceedings against it, (C) file a petition
        seeking or consent to reorganization or relief under any applicable
        federal or state law relating to bankruptcy, (D) consent to the
        appointment of a receiver, liquidator, assignee, trustee, sequestrator
        (or other similar official) of the corporation or a substantial part of
        its property, (E) make a general assignment for the benefit of
        creditors, (F) admit in writing its inability to pay its debts generally
        as they become due or (G) take any corporate action in furtherance of
        the actions set forth in clauses (A) through (F) above; provided,
        however, that no director may be required by any shareholder of the
        Seller to consent to the institution of bankruptcy or insolvency
        proceedings against the Seller so long as it is solvent; or

                  (iii) merge or consolidate with any other corporation, company
        or entity or sell all or substantially all of its assets or acquire all
        or substantially all of the assets or capital stock or other ownership
        interest of any other corporation, company or entity (except for the
        acquisition of Vehicle Receivables and the sale of Vehicle Receivables
        to one or more trusts in accordance with the terms of clause (b)(ii)
        above, which shall not be otherwise restricted by this Section 6.03(c)).

        Section 6.04. Limitation on Liability of Seller and Others. The Seller
and any director or officer or employee or agent of the Seller may rely in good
faith on any document of any kind, prima facie properly executed and submitted
by any Person respecting any matters arising hereunder. The Seller and any
director or officer or employee or agent of the Seller shall be reimbursed by
the Owner Trustee or the Indenture Trustee, as the case may be, for any
contractual damages, liability or expense incurred by reason of the Owner
Trustee's or the Indenture Trustee's willful misfeasance, bad faith or
negligence (except for errors in judgment) in the performance of their
respective duties hereunder, or by reason of reckless disregard of their
respective obligations and duties hereunder. The Seller shall not be under any
obligation to

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<PAGE>

appear in, prosecute or defend any legal action that shall not be incidental to
its obligations under this Agreement, and that in its opinion may involve it in
any expense or liability. The indemnities contained in this Section shall
survive the resignation or termination of the Owner Trustee or the termination
of this Agreement.

        Section 6.05. Seller Not to Resign. Subject to the provisions of Section
6.03, the Seller shall not resign from the obligations and duties hereby imposed
on it as Seller hereunder.

        Section 6.06. Seller May Own Securities. The Seller and any Affiliate
thereof may in its individual or any other capacity become the owner or pledgee
of Securities with the same rights as it would have if it were not such Seller
or an Affiliate thereof, except as expressly provided herein or in any Basic
Document. Securities so owned by or pledged to the Seller or an Affiliate
thereof shall have an equal and proportionate benefit under the provisions of
this Agreement, without preference, priority or distinction as among all of the
Notes.

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                                  ARTICLE SEVEN

                               THE MASTER SERVICER

        Section 7.01. Liability of Master Servicer; Indemnities. Subject to
Section 8.02, the Master Servicer shall be liable in accordance herewith only to
the extent of the obligations specifically undertaken by the Master Servicer
under this Agreement. Such obligations shall include the following:

               (a) The Master Servicer shall indemnify, defend and hold harmless
        the Issuer, the Owner Trustee, the Indenture Trustee, the
        Securityholders and the Insurer from and against any and all costs,
        expenses, losses, damages, claims and liabilities, arising out of or
        resulting from the use, ownership or operation by the Master Servicer,
        any Subservicer or any of their respective Affiliates of a Financed
        Vehicle.

               (b) The Master Servicer shall indemnify, defend and hold harmless
        the Issuer, the Owner Trustee, the Indenture Trustee and the Insurer
        from and against any taxes that may at any time be asserted against the
        Owner Trustee, the Indenture Trustee or the Issuer with respect to the
        transactions contemplated herein, including, without limitation, any
        sales, gross receipts, general corporation, tangible personal property,
        privilege or license taxes (but not including any taxes asserted with
        respect to, and as of the date of, the sale of the Contracts to the
        Issuer or the issuance and original sale of the Securities, or asserted
        with respect to ownership of the Contracts, or federal or other income
        taxes arising out of distributions on the Securities) and costs and
        expenses in defending against the same.

               (c) The Master Servicer shall indemnify, defend and hold harmless
        the Issuer, the Owner Trustee, the Indenture Trustee, the Insurer and
        the Securityholders from and against any and all costs, expenses,
        losses, claims, damages and liabilities to the extent that such cost,
        expense, loss, claim, damage or liability arose out of, or was imposed
        upon any such Person through, the negligence, willful misfeasance or bad
        faith of the Master Servicer in the performance of its duties under this
        Agreement or by reason of reckless disregard of its obligations and
        duties under this Agreement.

               (d) The Master Servicer shall indemnify, defend and hold harmless
        the Owner Trustee, the Indenture Trustee and the Insurer from and
        against any and all costs, expenses, losses, claims, damages and
        liabilities arising out of or incurred in connection with the acceptance
        or performance of the trusts and duties herein or the Trust Agreement
        contained, except to the extent that such cost, expense, loss, claim,
        damage or liability (i) shall be due to the willful misfeasance, bad
        faith or negligence (except for errors in judgment) of the Owner Trustee
        or the Indenture Trustee, as the case may be; (ii) relates to any tax
        other than the taxes with respect to which either the Seller or Master
        Servicer shall be required to indemnify the Owner Trustee and the
        Indenture Trustee; (iii) shall arise from the Owner Trustee's or the
        Indenture Trustee's breach of any of their respective representations or
        warranties set forth herein, in the Trust Agreement or in the Indenture;
        or (iv) shall be one as to which the Seller is required to indemnify the
        Owner Trustee or the Indenture Trustee, as the case may be.

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<PAGE>

               (e) The Master Servicer shall pay the Owner Trustee compensation,
        reimbursement or other payments owed to it by the Seller pursuant to
        Sections 8.01 and 8.02 of the Trust Agreement if the Seller fails to
        remit such compensation, reimbursement or payment in a timely manner.

        Indemnification under this Section shall survive the resignation or
removal of the Owner Trustee or the Indenture Trustee or the termination of this
Agreement of the Trust Agreement and shall include, without limitation,
reasonable fees and expenses of counsel and expenses of litigation. If the
Master Servicer shall have made any indemnity payments pursuant to this Section
and the Person to or on behalf of whom such payments are made thereafter
collects any of such amounts from others, such Person shall promptly repay such
amounts to the Master Servicer, without interest.

        Section 7.02. Corporate Existence; Status as Master Servicer; Merger.
The Master Servicer shall not consolidate with or merge into any other
corporation or convey, transfer or lease all or substantially all of its assets
as an entirety to any Person unless the corporation formed by such consolidation
or into which the Master Servicer has merged or the Person which acquires by
conveyance, transfer or lease substantially all the assets of the Master
Servicer as an entirety can lawfully perform the obligations of the Master
Servicer hereunder and executes and delivers to the Indenture Trustee and the
Owner Trustee an agreement in form and substance reasonably satisfactory to the
Indenture Trustee, the Owner Trustee and the Insurer, which contains an
assumption by such successor entity of the due and punctual performance or
observance of each covenant and condition to be performed or observed by the
Master Servicer under this Agreement. Notice shall be sent to each Rating Agency
by the Master Servicer of any consolidation, merger or succession pursuant to
this Section.

        Section 7.03. Performance of Obligations.

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

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

        Section 7.04. Master Servicer Not to Resign; Assignment.

        (a) The Master Servicer shall not resign from the duties and obligations
hereby imposed on it except upon determination by its Board of Directors that by
reason of change in applicable legal requirements the continued performance by
the Master Servicer of its duties hereunder would cause it to be in violation of
such legal requirements in a manner which would result in a material adverse
effect on the Master Servicer or its financial condition, said determination to
be evidenced by a resolution of its Board of Directors to such effect
accompanied by an Opinion of Counsel, satisfactory to the Owner Trustee and the
Indenture Trustee, to such

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effect. No such resignation shall become effective unless and until (i) a new
servicer acceptable to the Owner Trustee, the Indenture Trustee and the Insurer
is willing to service the Contracts and enters into a servicing agreement with
the Issuer and the Insurer in form and substance substantially similar to this
Agreement and satisfactory to the Owner Trustee, the Indenture Trustee and the
Insurer and (ii) each Rating Agency confirms that the selection of such new
servicer will not result in the qualification, reduction or withdrawal of its
then-current rating of each Class of Notes assigned by such Rating Agency. No
such resignation shall affect the obligation of the Master Servicer to
repurchase Contracts pursuant to Section 4.07.

        (b) Except as specifically permitted in this Agreement, the Master
Servicer may not assign this Agreement or any of its rights, powers, duties or
obligations hereunder; provided that the Master Servicer may assign this
Agreement in connection with a consolidation, merger, conveyance, transfer or
lease made in compliance with Section 7.02.

        (c) Except as provided in Sections 7.04(a) and (b), the duties and
obligations of the Master Servicer under this Agreement shall continue until
this Agreement shall have been terminated as provided in Section 9.01 or the
Issuer shall have been terminated as provided by the terms of the Trust
Agreement, and shall survive the exercise by the Owner Trustee, the Indenture
Trustee or the Insurer of any right or remedy under this Agreement, or the
enforcement by the Owner Trustee, the Indenture Trustee, any Certificateholder
or Noteholder, or the Insurer of any provision of the Notes, the Certificates,
the Insurance Agreement or this Agreement.

        (d) The resignation of the Master Servicer in accordance with this
Section shall not affect the rights of the Seller hereunder. If the Master
Servicer resigns pursuant to this Section, its appointment as custodian can be
terminated pursuant to Section 3.07.

        Section 7.05. Limitation on Liability of Master Servicer and Others.

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

        (b) The Master Servicer and any director or officer or employee or agent
of the Master Servicer shall be reimbursed by the Owner Trustee or the Indenture
Trustee, as the case may be, for any contractual damages, liability or expense
incurred by reason of such Trustee's willful misfeasance, bad faith or
negligence (except errors in judgment) in the performance of such Trustee's
duties under this Agreement or by reason of reckless disregard of its
obligations and duties under this Agreement.

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

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                                  ARTICLE EIGHT

                                     DEFAULT

        Section 8.01. Servicer Default. If any one of the following events (a
"Servicer Default") shall occur and be continuing:

               (a) a claim being made under the Note Policy;

               (b) any failure by the Master Servicer or the Issuer, to deposit
        or credit, or to deliver to the Indenture Trustee for deposit, in any of
        the Trust Accounts any amount required hereunder to be as deposited,
        credited or delivered or to direct the Indenture Trustee to make any
        required distributions therefrom, that shall continue unremedied for a
        period of three Business Days after written notice of such failure is
        received from the Owner Trustee, the Indenture Trustee or the Insurer or
        after discovery of such failure by an officer of the Master Servicer;

               (c) any failure by the Master Servicer to deliver to the Insurer,
        the Indenture Trustee or the Owner Trustee a report in accordance with
        Section 4.09 and/or Section 4.10 by the fourth Business Day prior to the
        Distribution Date with respect to which such report is due, or the
        Master Servicer shall have defaulted in the due observance of any
        provision of Section 7.02 (other than failure to enter into an
        assumption agreement under Section 7.02, which is a Servicer Default
        only if such failure continues for ten Business Days);

               (d) failure on the part of the Seller, the Issuer or the Master
        Servicer duly to observe or to perform in any material respect any other
        covenants or agreements of the Master Servicer or the Seller set forth
        in this Agreement or any other Basic Document, which failure shall (i)
        materially and adversely affect the rights of the Insurer, the Owner
        Trustee, the Indenture Trustee, the Certificateholders or Noteholders
        and (ii) continue unremedied for a period of 30 days after the date on
        which written notice of such failure, requiring the same to be remedied,
        shall have been given (A) to the Master Servicer or the Seller (as the
        case may be) by the Insurer, the Owner Trustee or the Indenture Trustee
        or (B) to the Master Servicer or the Seller (as the case may be), and to
        the Owner Trustee and the Indenture Trustee by the Holders of Notes
        evidencing not less than 25% of the Outstanding Amount of the Notes,
        voting together as a single Class, or, if the Notes have been paid in
        full, by Certificateholders evidencing not less than 25% of the
        aggregate Certificate Percentage Interest, or so long as no default
        under the Note Policy has occurred and is continuing and no insolvency
        of the Insurer has occurred, by the Insurer;

               (e) the occurrence of an Insolvency Event with respect to the
        Seller, the Issuer or the Master Servicer; or

               (f) any representation, warranty or statement of the Master
        Servicer, the Issuer or the Seller made in this Agreement or any
        certificate, report or other writing delivered pursuant hereto shall
        prove to be incorrect in any material respect as of the time when the
        same shall have been made (excluding, however, any representation or
        warranty

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        to which Section 3.01 or 4.06 shall be applicable so long as the Master
        Servicer or the Seller shall be in compliance with Section 3.02 or 4.07,
        as the case may be), and the incorrectness of such representation,
        warranty or statement has a material adverse effect on the Noteholders
        or the Certificateholders and, within 30 days after written notice
        thereof shall have been given to the Master Servicer or the Seller by
        the Indenture Trustee or the Owner Trustee or by the Holders of Notes
        evidencing not less than 25% of the Outstanding Amount of the Notes,
        voting together as a single Class, or Certificateholders evidencing not
        less than 25% of the aggregate Certificate Percentage Interest or, so
        long as no default has occurred under the Note Policy and is continuing
        and no Insurer Insolvency has occurred, by the Insurer, the circumstance
        or condition in respect of which such representation, warranty or
        statement was incorrect shall not have been eliminated or otherwise
        cured;

then, and in each and every case, so long as such Servicer Default shall not
have been remedied and subject to the limitations set forth in Section 6.07 of
the Insurance Agreement, either the Indenture Trustee, the Insurer, the Holders
of Notes evidencing not less than a majority of the Outstanding Amount of the
Notes, voting together as a single Class (or, if the Notes have been paid in
full and the Indenture has been discharged in accordance with its terms, by the
Owner Trustee or by Certificateholders evidencing not less than a majority of
the aggregate Certificate Percentage Interest), by notice then given in writing
to the Master Servicer (and to the Insurer, the Indenture Trustee and the Owner
Trustee if given by the Noteholders or the Certificateholders) may terminate all
the rights and obligations of the Master Servicer under this Agreement. Upon
such termination, termination of the Master Servicer as custodian can be made
pursuant to Section 3.07. On or after the receipt by the Master Servicer of such
written notice, all authority and power of the Master Servicer under this
Agreement, whether with respect to the Notes, the Certificates, the Contracts or
otherwise, shall, without further action, pass to and be vested in the Indenture
Trustee or such successor Master Servicer as may be appointed under Section
8.02; and, without limitation, the Indenture Trustee and the Owner Trustee are
hereby authorized and empowered to execute and deliver, for the benefit of the
predecessor Master Servicer, as attorney-in-fact or otherwise, any and all
documents and other instruments, and to do or accomplish all other acts or
things necessary or appropriate to effect the purposes of such notice of
termination, whether to complete the transfer and endorsement of the Contracts
and related documents, or otherwise. The Master Servicer shall cooperate with
the Indenture Trustee and the Owner Trustee in effecting the termination of the
responsibilities and rights of the predecessor Master Servicer under this
Agreement, including the transfer to the Indenture Trustee for administration by
it of all cash amounts that shall at the time be held by the predecessor Master
Servicer for deposit, or shall thereafter be received by it with respect to any
Contract.

        Section 8.02. Indenture Trustee to Act; Appointment of Successor. Upon
the Master Servicer's receipt of notice of termination pursuant to Section 8.01
or resignation pursuant to Section 7.04, the Indenture Trustee shall be the
successor to the Master Servicer in its capacity as servicer under this
Agreement, and shall be subject to all the responsibilities, duties and
liabilities relating thereto placed on the Master Servicer by the terms and
provisions of this Agreement, except that the Indenture Trustee shall not be
obligated to purchase Contracts pursuant to Section 4.07 unless the obligation
to repurchase arose after the date of the notice of termination given to the
Master Servicer pursuant to Section 8.01 or be subject to any obligation

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of the Master Servicer to indemnify or hold harmless any Person as set forth in
this Agreement arising from the acts or omissions of the previous Master
Servicer. As compensation therefor, the Indenture Trustee shall be entitled to
such compensation (whether payable out of the Collection Account or otherwise)
as the Master Servicer would have been entitled to under this Agreement if no
such notice of termination shall have been given. If, however, a bankruptcy
trustee or similar official has been appointed for the Master Servicer, and no
Servicer Default other than such appointment has occurred, such trustee or
official may have the power to prevent the Indenture Trustee, Insurer or the
Noteholders from effecting a transfer of servicing. Notwithstanding the above,
the Indenture Trustee may, if it shall be unwilling to act, or shall, if it
shall be legally unable so to act, appoint, or petition a court of competent
jurisdiction to appoint, any established financial institution, having a net
worth of not less than $50,000,000 and whose regular business shall include the
servicing of motor vehicle retail installment sales contracts, as the successor
to the Master Servicer under this Agreement. Pending appointment of any such
successor Master Servicer, the Indenture Trustee shall act in such capacity as
provided above. In connection with such appointment, the Indenture Trustee may
make such arrangements for the compensation of such successor out of payments on
Contracts it and such successor shall agree; provided, however, that no such
compensation shall be in excess of that permitted the Master Servicer under this
Agreement without the consent of the Insurer. The Indenture Trustee and such
successor shall take such action, consistent with this Agreement, as shall be
necessary to effectuate any such succession.

        Section 8.03. Repayment of Advances. If the identity of the Master
Servicer shall change, the predecessor Master Servicer shall be entitled to
receive reimbursement for outstanding Advances pursuant to Section 5.04 with
respect to all Advances made by the predecessor Master Servicer.

        Section 8.04. Notification to Noteholders and Certificateholders. Upon
any termination of, or appointment of a successor to, the Master Servicer
pursuant to this Article, the Owner Trustee shall give prompt written notice
thereof to Certificateholders at their respective addresses appearing in the
Certificate Register, and the Indenture Trustee shall give prompt written notice
thereof to Noteholders at their respective addresses appearing in the Note
Register and to each Rating Agency.

        Section 8.05. Waiver of Past Defaults. The Holders of Notes evidencing
not less than a majority of the Outstanding Amount of the Notes, voting together
as a single Class, or, if all the Notes have been paid in full and the Indenture
has been discharged in accordance with its terms, Certificateholders evidencing
not less than a majority of the aggregate Certificate Percentage Interest (in
the case of any default which does not adversely affect the Indenture Trustee or
the Noteholders) may, on behalf of all Securityholders, with the consent of the
Insurer, waive in writing any default by the Master Servicer in the performance
of its obligations hereunder and its consequences, except a default in making
any required deposits to or payments from any of the Trust Accounts in
accordance with this Agreement or in respect of a covenant or provisions hereof
which cannot be modified without the consent of each Securityholder. Upon any
such waiver of a past default, such default shall cease to exist, and any
Servicer Default arising therefrom shall be deemed to have been remedied for
every purpose of this Agreement. No such waiver shall extend to any subsequent
or other default or impair any right consequent thereto.

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        Section 8.06. Insurer Direction of Insolvency Proceedings. Upon receipt
of actual knowledge thereof by a Responsible Officer, the Indenture Trustee
shall promptly notify the Insurer of (i) the commencement of any of the events
or proceedings (individually, an "Insolvency Proceeding") described in the
definition of the term "Insolvency Event" or any such event or proceeding
applicable to an Obligor under a Contract and (ii) the making of any claim in
connection with any Insolvency Proceeding seeking the avoidance as a
preferential transfer (a "Preference Claim") of any payment of principal of, or
interest on, a Contract or any Notes or Certificates. Each Noteholder and Note
Owner, by its purchase of Notes or a beneficial interest therein, each
Certificateholder, by its purchase of Certificates or a beneficial interest
therein, the Owner Trustee and the Indenture Trustee hereby agree that, so long
as neither a default under the Note Policy nor an Insurer Insolvency has
occurred and is continuing, the Insurer may at any time during the continuation
of an Insolvency Proceeding direct all matters relating to such Insolvency
Proceeding, including, without limitation, (i) all matters relating to any
Preference Claim, (ii) the direction of any appeal of any order relating to any
Preference Claim and (iii) the posting of any surety, supersedes or performance
bond pending any such appeal. The Insurer shall be subrogated to the rights of
the Indenture Trustee, the Owner Trustee and each Securityholder in the conduct
of any Insolvency Proceeding, including, without limitation, all rights of any
party to an adversary proceeding action with respect to any court order issued
in connection with any such Insolvency Proceeding. In addition, for so long as
the Insurer guarantees amounts owing under the RIC and has not defaulted in the
making of any payment required to be made by it pursuant to such guaranty, the
Insurer shall have the right to initiate and control a proceeding against the
obligor under the RIC but only to the extent such proceeding relates to the
amounts so guaranteed and no settlement of any other proceeding or claim that
would adversely affect the Insurer's rights to recover such amounts shall be
effected without the prior written consent of the Insurer.

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                                  ARTICLE NINE

                                   TERMINATION

        Section 9.01. Optional Purchase of All Contracts.

        (a) On each Distribution Date as of which the Aggregate Principal
Balance is less than or equal to $135,000,000, the Seller shall have the option
to purchase the remaining Contracts from the Issuer. Notice of the exercise of
such option shall be given by the Seller to the Owner Trustee, the Indenture
Trustee and the Insurer not later than the 25th day of the month immediately
preceding the month of the related Distribution Date. To exercise such option,
the Seller shall pay to the Indenture Trustee for the benefit of the
Securityholders, by deposit in the Collection Account on the Business Day
immediately preceding the related Distribution Date, the Aggregate Repurchase
Amount, and shall succeed to all interests in and to the Issuer. Such purchase
shall be deemed to have occurred on the last day of such Due Period. In
addition, if the Master Servicer or the Seller has outstanding senior debt and
such debt is not rated "investment grade" by Moody's at the time of exercising
the option pursuant to this Section, then the Master Servicer or such Seller
shall deliver to the Owner Trustee, the Indenture Trustee and Moody's, an
Opinion of Counsel to the effect that such optional purchase is not a fraudulent
conveyance.

        (b) Upon any sale of the assets of the Issuer pursuant to Section
5.02(b) or Section 5.04 of the Indenture, the Master Servicer shall instruct the
Indenture Trustee to deposit the proceeds from such sale after all payments and
reserves therefrom have been made (the "Insolvency Proceeds") in the Collection
Account. On the Distribution Date on which the Insolvency Proceeds are deposited
in the Collection Account (or, if such proceeds are not so deposited on a
Distribution Date, on the Distribution Date immediately following such deposit),
the Master Servicer shall instruct the Indenture Trustee to distribute such
Insolvency Proceeds in accordance with Section 5.06(a) of the Indenture.

        (c) As described in Article Nine of the Trust Agreement, notice of any
termination of the Issuer shall be given by the Master Servicer to the Owner
Trustee, the Insurer, the Swap Counterparty and the Indenture Trustee as soon as
practicable after the Master Servicer has received notice thereof.

        (d) Following the satisfaction and discharge of the Indenture and the
payment in full of the principal of and interest on the Notes, the
Certificateholders will succeed to the rights of the Noteholders hereunder and
the Owner Trustee will succeed to the rights of, and assume the obligations of,
the Indenture Trustee pursuant to this Agreement.

        (e) On a Distribution Date on which an optional purchase pursuant to
Section 9.01(a) of all remaining Contracts in the Issuer occur, the Master
Servicer shall instruct the Indenture Trustee to make the following
distributions of the Aggregate Repurchase Amount and any Net Collections on
deposit in the Collection Account in the following priorities:

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

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                  (ii) to the Swap Counterparty, any accrued and unpaid Net Swap
        Payments with respect to one or more prior Due Periods;

                  (iii) to the Owner Trustee and Indenture Trustee, any accrued
        and unpaid fees and expenses;

                  (iv) to the Note Distribution Account, the Redemption Price
        for full payment of outstanding principal and accrued interest on the
        Notes;

                  (v) to the Swap Counterparty, any Swap Termination Payment
        owed to it by the Trust and not paid to it pursuant to clause (ii)
        above;

                  (vi) to the Insurer, to the extent of any Unreimbursed Insurer
        Amounts;

                  (vii) to WFSRC until WFSRC has received full repayment of the
        Spread Account Initial Deposit; and

                  (viii) to the Certificate Distribution Account, for
        distribution to Certificateholders in accordance with Section 5.02 of
        the Trust Agreement as determined by the Master Servicer.

        Section 9.02. Transfer to the Insurer. If (i) there is one or more
Outstanding Contracts at the end of the Due Period ending immediately prior to
the Class A-4 Final Scheduled Distribution Date and (ii) an amount sufficient to
pay the Note Distributable Amount on the Class A-4 Final Scheduled Distribution
Date has been deposited with the Indenture Trustee by the Insurer for the
benefit of the Class A-4A Noteholders and Class A-4B Noteholders then on the
Class A-4 Final Scheduled Distribution Date the Class A-4A Notes and Class A-4B
Notes shall be deemed to be transferred by the Class A-4A Noteholders and Class
A-4B Noteholders, respectively, to the Insurer or its designee as purchaser
thereof at the opening of business on the Class A-4 Final Scheduled Distribution
Date and the Owner Trustee, on behalf of the Trust, shall execute, and the
Indenture Trustee shall authenticate and deliver to the Insurer or its designee,
in the name of the Insurer or its designee, as the case may be, a new Class A-4A
Note and Class A-4B Note evidencing the entire respective Class Balances. Such
new Class A-4A Note and Class A-4B Note shall have the same terms as the Class
A-4A Notes and Class A-4B Notes, respectively, deemed transferred by the Class
A-4A Noteholders and Class A-4B Noteholders. No service charge shall be made for
the issuance of such Class A-4A Note and Class A-4B Note to the Insurer or its
designee, but the Owner Trustee may require payment of a sum sufficient to cover
any tax or other governmental charge imposed in connection therewith. Such
transfer shall not diminish or restrict the Insurer's rights hereunder or under
the Insurance Agreement.

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                                   ARTICLE TEN

                                  MISCELLANEOUS

        Section 10.01. Amendment.

        (a) This Agreement may be amended by the Seller, the Master Servicer and
the Owner Trustee on behalf of the Issuer, collectively, without the consent of
any Securityholders, (i) to cure any ambiguity, to correct or supplement any
provisions in this Agreement which are inconsistent with the provisions herein,
or to add any other provisions with respect to matters or questions arising
under this Agreement that shall not be inconsistent with the provisions of this
Agreement, (ii) to add or provide any credit enhancement for any Class of Notes
and (iii) to change any provision applicable for determining the Specified
Spread Account Balance or the manner in which the Spread Account is funded (in
each case with the approval of the Insurer); provided, however, that any such
action shall not, as evidenced by an Opinion of Counsel, adversely affect in any
material respect the interests of any Securityholder and provided, further, that
in connection with any amendment pursuant to clause (ii) and (iii) above, the
Master Servicer shall deliver to the Owner Trustee, the Indenture Trustee and
the Insurer a letter from Standard & Poor's to the effect that such amendment
will not cause its then-current rating on any Class of Notes to be qualified,
reduced or withdrawn, without giving any consideration to the effect of the
guaranty under the Note Policy of payments owing to Noteholders, and the Master
Servicer shall provide Moody's notice of such amendment; and provided, further,
that this Agreement may not be amended to alter the rights or obligations of the
Indenture Trustee without the prior consent of the Indenture Trustee.

        (b) This Agreement may also be amended from time to time by the Seller,
the Master Servicer and the Owner Trustee on behalf of the Issuer, with the
consent of the Holders of Notes holding not less than a majority of the
Outstanding Amount of the Notes and the consent of Certificateholders evidencing
not less than a majority of the Certificate Percentage Interest, for the purpose
of adding any provisions to or changing in any manner or eliminating any of the
provisions of this Agreement or of modifying in any manner the rights of the
Noteholders or the Certificateholders; provided, however, that no such amendment
shall increase or reduce in any manner the amount of, or accelerate or delay the
timing of (i)(A) collections of payments on the Contracts or distributions that
shall be required to be made on any Note or Certificate or any Interest Rate,
(B) except as otherwise provided in Section 10.01(a), the Specified Spread
Account Balance, or the manner in which the Spread Account is funded or (ii)
reduce the aforesaid percentage of the Outstanding Amount of the Notes, the
Holders of which are required to consent to any such amendment, without the
consent of the Insurer, the Swap Counterparty and the Holders of all Notes and
Certificates of the relevant Class then outstanding.

        (c) Prior to the execution of any such amendment or consent, the
Indenture Trustee shall furnish written notification of the substance of such
amendment or consent, as prepared by the Seller, the Master Servicer and the
Owner Trustee on behalf of the Issuer, at the expense of the such party,
together with a copy thereof, to each Rating Agency and the Insurer.

        (d) Promptly after the execution of any such amendment or consent, the
Owner Trustee and the Indenture Trustee, as the case may be, shall furnish the
written notification of the

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substance of the amendment or consent described in Section 10.01(c) above, at
the expense of the Seller, the Master Servicer or the Owner Trustee on behalf of
the Issuer, as the case may be, to each Certificateholder and Noteholder,
respectively. It shall not be necessary for the consent of Noteholders and
Certificateholders pursuant to Section 10.01(b) to approve the particular form
of any proposed amendment or consent, but it shall be sufficient if such consent
shall approve the substance thereof. The manner of obtaining such consents and
of evidencing the authorization by Noteholders and Certificateholders of the
execution thereof shall be subject to such reasonable requirements as the Owner
Trustee or the Indenture Trustee may prescribe.

        (e) Prior to the execution of any amendment to this Agreement, the Owner
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. The Owner Trustee may, but shall not be obligated to, enter into any
such amendment which affects the Owner Trustee's own rights, duties or
immunities under this Agreement or otherwise.

        Section 10.02. Protection of Title to Trust.

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

        (b) Neither WFS, the Seller nor the Master Servicer shall change its
name, identity or corporate structure in any manner that would, could or might
make any financing statement or continuation statement filed in accordance with
Section 10.02(a) seriously misleading within the meaning of Section 9-507 of the
UCC, unless it shall have given the Insurer, the Owner Trustee and the Indenture
Trustee at least 60 days' prior written notice thereof and shall have promptly
filed appropriate amendments to all previously filed financing statements or
continuation statements.

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

        (d) The Master Servicer shall maintain or cause to be maintained
accounts and records as to each Contract accurately and in sufficient detail to
permit (i) the reader thereof to know at any time the status of such Contract,
including payments and recoveries made and payments owing (and the nature of
each) and (ii) reconciliation between payments or recoveries

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on (or with respect to) each Contract and the amounts from time to time
deposited in or credited to the Collection Account in respect of such Contract.

        (e) The Master Servicer shall maintain or cause to be maintained its
computer systems and those of Subservicers so that, from and after the time of
sale under this Agreement of the Contracts, the Master Servicer's and
Subservicer's master computer records (including any backup archives) that shall
refer to a Contract indicate clearly the interest of the Issuer and the
Indenture Trustee in such Contract and that such Contract is owned by the Issuer
and has been pledged to the Indenture Trustee. Indication of the Issuer's
ownership of and the Indenture Trustee's interest in a Contract shall be deleted
from or modified on the Master Servicer's computer systems when, and only when,
the related Contract shall have been paid in full or repurchased or shall have
become a Liquidated Contract.

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

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

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

        (i) The Master Servicer shall deliver to the Owner Trustee, the
Indenture Trustee, each Rating Agency and the Insurer:

                  (i) promptly after the execution and delivery of this
        Agreement and of each amendment hereto, an Opinion of Counsel stating
        that, in the opinion of such counsel, the Indenture Trustee holds a
        perfected security interest in the Contracts, that the Issuer holds
        title to the Contracts subject to the security interest of the Indenture
        Trustee and the lien of the Insurer pursuant to the Insurance Agreement,
        and that the Insurer holds a lien on the Contracts under the Insurance
        Agreement, subject to applicable subordination; and

                  (ii) within 90 days after the beginning of each calendar year
        beginning with the first calendar year beginning more than three months
        after the Cut-Off Date, an Opinion of Counsel, dated as of a date during
        such 90-day period, either (A) stating that, in the opinion of such
        counsel, all financing statements and continuation statements have been
        executed and filed that are necessary fully to preserve and protect the
        interest of the Owner Trustee and the Indenture Trustee in the
        Contracts, and reciting the details of such

                                       73
<PAGE>

        filings or referring to prior Opinions of Counsel in which such details
        are given or (B) stating that, in the opinion of such counsel, no such
        action shall be necessary to preserve and protect such interest.

        Section 10.03. Governing Law. This Agreement shall be construed in
accordance with the laws of the State of California and the obligations, rights,
and remedies of the parties under the Agreement shall be determined in
accordance with such laws, except that the duties of the Owner Trustee and the
Indenture Trustee shall be governed by the laws of the State of New York.

        Section 10.04. Notices. All demands, notices and communications upon or
to the Seller, the Master Servicer, the Owner Trustee, the Indenture Trustee,
the Insurer or the Rating Agencies under this Agreement shall be in writing,
personally delivered or mailed by certified mail, return receipt requested, and
shall be deemed to have been duly given upon receipt in the case of (i) WFSRC,
at 444 East Warm Springs Road #116, Las Vegas, Nevada 89119, Attention: Keith
Ford, (ii) the Master Servicer, 23 Pasteur, Irvine, California 92618, Attention:
Legal Department, (iii) the Issuer or the Owner Trustee, at the Corporate Trust
Office (with, in the case of the Issuer, a copy to the Seller), (iv) the
Indenture Trustee, at 60 Wall Street, New York, New York 10005, Attention:
Corporate Trust & Agency Services -- Structured Finance Services, (v) Moody's,
to Moody's Investors Service, Inc., ABS Monitoring Department, 99 Church Street,
New York, New York 10007, (vi) Standard & Poor's, to Standard & Poor's, 55 Water
Street, New York, New York 10041, Attention of Asset Backed Surveillance
Department and (vii) the Insurer, at 350 Park Avenue, New York, New York 10022,
Attention: Transaction Oversight Department, with a copy to the Senior Vice
President -- Transaction Oversight; or, as to each of the foregoing, at such
other address as shall be designated by written notice to the other parties. Any
notice required or permitted to be to be mailed to a Securityholder shall be
given by first class mail, postage prepaid, at the address of such Holder as
shown in the Note Register or the Certificate Register, as the case may be. Any
notice so mailed within the time prescribed herein shall be conclusively
presumed to have been duly given, whether or not such Securityholder shall
receive such notice.

        Section 10.05. Severability of Provisions. If one or more of the
covenants, agreements, provisions or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions or
terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement or of the Notes or
Certificates or the rights of the Holders thereof.

        Section 10.06. Assignment. Notwithstanding anything to the contrary
contained herein, as provided in Sections 6.03, 7.02 and 8.04, this Agreement
may not be assigned by the Seller or the Master Servicer without the prior
written consent of Holders of Notes of each Class evidencing not less than
662/3% of the Outstanding Amount of Notes of such Class and Certificateholders
evidencing not less than 662/3% of the aggregate Certificate Percentage
Interest.

        Section 10.07. Third Party Beneficiaries. Except as otherwise
specifically provided herein, the parties hereto hereby manifest their intent
that no third party other than the Insurer

                                       74
<PAGE>

and the Swap Counterparty shall be deemed a third party beneficiary of this
Agreement, and specifically that the Obligors are not third party beneficiaries
of this Agreement.

        Section 10.08. Insurer Default or Insolvency. If a default under the
Note Policy has occurred and is continuing or an Insurer Insolvency has
occurred, any provision giving the Insurer the right to direct, appoint or
consent to, approve of, or take any action under this Agreement, shall be
inoperative during the period of such default or the period from and after such
Insurer Insolvency and such consent or approval shall be deemed to have been
given for the purpose of such provisions.

        Section 10.09. Counterparts. This Agreement may be executed in several
counterparts, each of which shall be an original and all of which shall together
constitute but one and the same instrument.

        Section 10.10. Headings. The headings of the various Articles and
Sections herein are for convenience of reference only and shall not define or
limit any of the terms or provisions hereof.

        Section 10.11. Assignment by Issuer. The Seller hereby acknowledges and
consents to any mortgage, pledge, assignment and grant of a security interest by
the Issuer to the Indenture Trustee pursuant to the Indenture for the benefit of
the Noteholders of all right, title and interest of the Issuer in, to and under
the Contracts and/or the assignment of any or all of the Issuer's rights and
obligations hereunder to the Indenture Trustee.

        Section 10.12. Limitation of Liability of Owner Trustee. Notwithstanding
anything contained herein to the contrary, this instrument has been
countersigned by Chase Manhattan Bank USA, National Association not in its
individual capacity but solely in its capacity as Owner Trustee of the Issuer
and in no event shall Chase Manhattan Bank USA, National Association in its
individual capacity or any beneficial owner of the Issuer have any liability for
the representations, warranties, covenants, agreements or other obligations of
the Issuer hereunder, as to all of which recourse shall be had solely to the
assets of the Issuer. For all purposes of this Agreement, in the performance of
any duties or obligations of the Issuer hereunder, the Owner Trustee shall be
subject to, and entitled to the benefits of, the terms and provisions of
Articles Six, Seven and Eight of the Trust Agreement.

        Section 10.13. Effect of Policy Expiration Date. Notwithstanding
anything to the contrary set forth herein, all references to any right of the
Insurer to direct, appoint, consent to, accept, approve of, take or omit to take
any action under this Sale and Servicing Agreement or any other Basic Document
shall be inapplicable at all times after the Policy Expiration Date, and (i) if
such reference provides for another party or parties to take or omit to take any
such action following an Insurer Default, such party or parties shall be
entitled to take or omit to take such action following the Policy Expiration
Date and (ii) if such reference does not provide for another party or parties to
take or omit to take any such action following an Insurer Default, then the
Indenture Trustee acting at the written direction of Holders of Notes evidencing
not less than a majority of the Outstanding Amount of the Notes, voting together
as a single Class, with the consent of Certificateholders holding not less than
a majority of the Certificate Percentage Interest shall have the right to take
or omit to take any such action following the Policy

                                       75
<PAGE>

Expiration Date. In addition, any other provision of this Sale and Servicing
Agreement or any other Basic Document which is operative based in whole or in
part on whether an Insurer Default has or has not occurred shall, at all times
on or after the Policy Expiration Date, be deemed to refer to whether or not the
Policy Expiration Date has occurred.

        Section 10.14. Limitation on Recourse Against WFSRC. Notwithstanding
anything to the contrary contained in this Agreement, the obligations of WFSRC
under the Basic Documents are solely the corporate obligations of WFSRC, and
shall be payable by WFSRC, solely as provided by the Basic Documents. WFSRC
shall only be required to pay (i) any fees, expenses, indemnities or other
liabilities that it may incur under the Basic Documents from funds available
pursuant to, and in accordance with, the payment priorities set forth in this
Agreement and (ii) to the extent WFSRC has additional funds available (other
than funds described in the preceding clause (i)) that would be in excess of
amounts that would be necessary to pay the debt and other obligations of WFSRC
incurred in accordance with WFSRC's certificate of incorporation and all
financing documents to which WFSRC is a party. The agreement set forth in the
preceding sentence shall constitute a subordination agreement for purposes of
Section 510(a) of the Bankruptcy Code. In addition, no amount owing by WFSRC
hereunder in excess of the liabilities that it is required to pay in accordance
with the preceding sentence shall constitute a "claim" (as defined in Section
101(5) of the Bankruptcy Code) against it.

        Section 10.15. Replacement Interest Rate Swap Agreement. In accordance
with Section 3.13 of the Insurance Agreement, the Issuer at the direction of the
Collateral Agent shall enter into a Replacement Interest Rate Swap Agreement
with a replacement swap provider(s) in form and substance satisfactory to the
Insurer. Any payment by a replacement swap provider(s) to enter into a
Replacement Interest Rate Swap Agreement shall be applied first to pay all Net
Swap Payments payable to the Swap Counterparty until such payment obligations
are satisfied.

                                       76
<PAGE>

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

                                WFS FINANCIAL 2002-4 OWNER TRUST

                                By: CHASE MANHATTAN BANK USA,
                                    NATIONAL ASSOCIATION,
                                    not in its individual capacity but solely as
                                    Owner Trustee on behalf of the Trust

                                By:____________________________________________
                                    Name:
                                    Title:

                                WFS RECEIVABLES CORPORATION,
                                    as Seller

                                By:____________________________________________
                                    Name:
                                    Title:

                                WFS FINANCIAL INC,
                                    as Master Servicer

                                By:____________________________________________
                                    Name:
                                    Title:

Acknowledged and accepted as of the day
and year first above written:

DEUTSCHE BANK TRUST COMPANY
AMERICAS, not in its individual capacity
but solely as Indenture Trustee

By:______________________________________
   Name:
   Title:

<PAGE>

                                                                      SCHEDULE A

                              SCHEDULE OF CONTRACTS

        [Omitted--Schedule of Contracts on file at the offices of the Seller,
        the Master Servicer, the Owner Trustee and the Indenture Trustee.]

                                      SA-1
<PAGE>

                                                                      SCHEDULE B

                           LOCATION OF CONTRACT FILES

WFS Financial Inc                      WFS Financial Inc
23 Pasteur                             6061 N. State Highway 161
Irvine, CA  92618                      Irving, TX  75038
714-727-1000                           972-870-8060

                                      SB-1
<PAGE>

                                                                      SCHEDULE C

                       NET CHARGE-OFF PERCENTAGE TRIGGERS
<TABLE>
<CAPTION>
                                                    Net Charge-Off
                                                      Percentage
Calculation Day                                         Trigger
---------------                                     --------------
<S>                                                 <C>
November 2002                                            0.00%
December 2002 -- February 2003                           0.34%
March 2003 -- May 2003                                   1.03%
June 2003 -- August 2003                                 1.72%
September 2003 -- November 2003                          2.32%
December 2003 -- February 2004                           2.87%
March 2004 -- May 2004                                   3.35%
June 2004 -- August 2004                                 3.77%
September 2004 -- November 2004                          4.12%
December 2004 -- February 2005                           4.39%
March 2005 -- May 2005                                   4.61%
June 2005 -- August 2005                                 4.77%
September 2005 -- November 2005                          4.90%
December 2005 -- February 2006                           5.00%
March 2006 -- May 2006                                   5.07%
June 2006 -- August 2006                                 5.11%
September 2006 -- November 2006                          5.15%
December 2006 -- February 2007                           5.18%
March 2007 -- May 2007                                   5.21%
June 2007 -- August 2007                                 5.22%
September 2007 -- November 2007                          5.24%
December 2007 -- February 2008                           5.24%
March 2008 -- August 2010                                5.25%
</TABLE>

                                      SC-1
<PAGE>

                                                                       EXHIBIT A

                           FORM OF INSURANCE AGREEMENT

                                       A-1
<PAGE>

                                                                       EXHIBIT B

                               FORM OF NOTE POLICY

                                       B-1

<PAGE>

                                                                       EXHIBIT C

                                   FORM OF RIC

                                       C-1

<PAGE>

                                                                       EXHIBIT D

                       FORM OF DISTRIBUTION DATE STATEMENT

                                       D-1

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