Document:

<PAGE>

                                                                     Exhibit 4.1
                                                                     -----------

                                MASTER INDENTURE

                                     between

                  FIRST CONSUMERS CREDIT CARD MASTER NOTE TRUST

                                     Issuer,

                                       and

                              THE BANK OF NEW YORK

                                Indenture Trustee

                           Dated as of March 1, 2001,
                  amended and restated as of December 31, 2001

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                                TABLE OF CONTENTS

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<S>                                                                             <C>
ARTICLE I    DEFINITIONS .......................................................   3
             Section 1.1.   Definitions ........................................   3
             Section 1.2.   Other Definitional Provisions ......................   3

ARTICLE II   THE NOTES .........................................................   4
             Section 2.1.   Form Generally .....................................   4
             Section 2.2.   Denominations ......................................   4
             Section 2.3.   Execution, Authentication and Delivery .............   5
             Section 2.4.   Authenticating Agent ...............................   5
             Section 2.5.   Registration of and Limitations on Transfer and
                            Exchange of Notes ..................................   6
             Section 2.6.   Mutilated, Destroyed, Lost or Stolen Notes .........   8
             Section 2.7.   Persons Deemed Owners ..............................   9
             Section 2.8.   Appointment of Paying Agent ........................  10
             Section 2.9.   Access to List of Noteholders' Names and]
                            Addresses ..........................................  10
             Section 2.10.  Cancellation .......................................  11
             Section 2.11.  [Reserved] .........................................  11
             Section 2.12.  New Issuances ......................................  11
             Section 2.13.  Book-Entry Notes ...................................  13
             Section 2.14.  Notices to Clearing Agency or Foreign Clearing
                            Agency .............................................  14
             Section 2.15.  Definitive Notes ...................................  14
             Section 2.16.  Global Note ........................................  15
             Section 2.17.  Meetings of Noteholders ............................  15

ARTICLE III  REPRESENTATIONS AND COVENANTS OF ISSUER ...........................  15
             Section 3.1.   Payment of Principal and Interest ..................  15
             Section 3.2.   Maintenance of Office or Agency ....................  16
             Section 3.3.   Money for Note Payments to Be Held in Trust ........  16
             Section 3.4.   Existence ..........................................  17
             Section 3.5.   Protection of Collateral ...........................  17
             Section 3.6.   Opinions as to Collateral ..........................  18
             Section 3.7.   Performance of Obligations; Servicing of
                            Receivables ........................................  19
             Section 3.8.   Negative Covenants .................................  21
             Section 3.9.   Statements as to Compliance ........................  21
             Section 3.10.  Issuer May Consolidate, Etc., Only on Certain
                            Terms ..............................................  22
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             Section 3.11.  Successor Substituted ..............................  24
             Section 3.12.  No Other Business ..................................  24
             Section 3.13.  [Reserved] .........................................  24
             Section 3.14.  Servicer's Obligations .............................  24
             Section 3.15.  Investments ........................................  24
             Section 3.16.  Capital Expenditures ...............................  24
             Section 3.17.  Removal of Administrator ...........................  24
             Section 3.18.  Restricted Payments ................................  25
             Section 3.19.  Notice of Events of Default ........................  25
             Section 3.20.  Further Instruments and Acts .......................  25

ARTICLE IV   SATISFACTION AND DISCHARGE ........................................  25
             Section 4.1.   Satisfaction and Discharge of this Indenture .......  25
             Section 4.2.   Application of Issuer Money ........................  27

ARTICLE V    PAY OUT EVENTS, DEFAULTS AND REMEDIES .............................  27
             Section 5.1.   Pay Out Events .....................................  27
             Section 5.2.   Events of Default ..................................  27
             Section 5.3.   Acceleration of Maturity; Rescission and
                            Annulment ..........................................  29
             Section 5.4.   Collection of Indebtedness and Suits for
                            Enforcement by Indenture Trustee ...................  30
             Section 5.6.   Optional Preservation of the Collateral ............  34
             Section 5.7.   Limitation on Suits ................................  34
             Section 5.8.   Unconditional Rights of Noteholders to Receive
                            Principal and Interest .............................  35
             Section 5.10.  Rights and Remedies Cumulative .....................  35
             Section 5.11.  Delay or Omission Not Waiver .......................  35
             Section 5.12.  Rights of Noteholders to Direct Indenture
                            Trustee ............................................  36
             Section 5.13.  Waiver of Past Defaults ............................  36
             Section 5.14.  Undertaking for Costs ..............................  37
             Section 5.16.  Sale of Receivables ................................  37
             Section 5.17.  Action on Notes ....................................  38

ARTICLE VI   THE INDENTURE TRUSTEE .............................................  38
             Section 6.1.   Duties of the Indenture Trustee ....................  38
             Section 6.2.   Notice of Pay Out Event or Event of Default ........  40
             Section 6.3.   Rights of Indenture Trustee ........................  41
             Section 6.4.   Not Responsible for Recitals or Issuance of
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                             Notes .............................................  42
              Section 6.5.   Restrictions on Holding Notes .....................  42
              Section 6.6.   Money Held in Trust ...............................  42
              Section 6.7.   Compensation, Reimbursement and
                             Indemnification ...................................  42
              Section 6.8.   Replacement of Indenture Trustee ..................  43
              Section 6.9.   Successor Indenture Trustee by Merger .............  45
              Section 6.10.  Appointment of Co-Indenture Trustee or
                             Separate Indenture Trustee ........................  45
              Section 6.11.  Eligibility; Disqualification .....................  46
              Section 6.12.  Preferential Collection of Claims Against .........  47
              Section 6.13.  Representations and Covenants of the Indenture
                             Trustee ...........................................  47
              Section 6.14.  Custody of the Collateral .........................  47

ARTICLE VII   NOTEHOLDERS' LIST AND REPORTS BY INDENTURE TRUSTEE AND ISSUER ....  48
              Section 7.1.   Issuer to Furnish Indenture Trustee Names and
                             Addresses of Noteholders ..........................  48
              Section 7.2.   Preservation of Information; Communications to
                             Noteholders .......................................  48
              Section 7.3.   Reports by Issuer .................................  48
              Section 7.4.   Reports by Indenture Trustee ......................  49

ARTICLE VIII  ALLOCATION AND APPLICATION OF COLLECTIONS ........................  50
              Section 8.1.   Collection of Money ...............................  50
              Section 8.2.   Rights of Noteholders .............................  50
              Section 8.3.   Establishment of Collection Account and Excess
                             Funding Account ...................................  50
              Section 8.4.   Collections and Allocations .......................  53
              Section 8.5.   Shared Principal Collections ......................  56
              Section 8.6.   Excess Finance Charge Collections .................  56
              Section 8.7.   Allocation of Collateral to Series or Groups ......  57
              Section 8.8.   Release of Collateral; Eligible Loan Documents ....  57
              Section 8.9.   Opinion of Counsel ................................  58

ARTICLE IX    DISTRIBUTIONS AND REPORTS TO NOTEHOLDERS .........................  58

ARTICLE X     SUPPLEMENTAL INDENTURES ..........................................  59
              Section 10.1.  Supplemental Indentures Without Consent of
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                             Noteholders .......................................  59
             Section  10.2.  Supplemental Indentures with Consent of
                             Noteholders .......................................  61
             Section  10.3.  Execution of Supplemental Indentures ..............  62
             Section  10.4.  Effect of Supplemental Indenture ..................  63
             Section  10.5.  Conformity With Trust Indenture Act ...............  63
             Section  10.6.  Reference in Notes to Supplemental Indentures .....  63

ARTICLE XI   TERMINATION .......................................................  63
             Section  11.1.  Termination of Issuer .............................  63
             Section  11.2.  Final Distribution ................................  63
             Section  11.3.  Issuer's Termination Rights .......................  64

ARTICLE XII  MISCELLANEOUS .....................................................  65
             Section  12.1.  Compliance Certificates and Opinions etc ..........  65
             Section  12.2.  Form of Documents Delivered to Indenture
                             Trustee ...........................................  66
             Section  12.3.  Acts of Noteholders ...............................  67
             Section  12.4.  Notices, Etc. to Indenture Trustee and Issuer .....  67
             Section  12.5.  Notices to Noteholders; Waiver ....................  68
             Section  12.6.  Alternate Payment and Notice Provisions ...........  68
             Section  12.7.  Conflict with Trust Indenture Act .................  69
             Section  12.8.  Effect of Headings and Table of Contents ..........  69
             Section  12.9.  Successors and Assigns ............................  69
             Section  12.10. Separability ......................................  69
             Section  12.11. Benefits of Indenture .............................  69
             Section  12.12. Legal Holidays ....................................  69
             Section  12.13. GOVERNING LAW .....................................  69
             Section  12.14. Counterparts ......................................  70
             Section  12.15. Issuer Obligation .................................  70
             Section  12.16. No Petition .......................................  70
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                 RECONCILIATION AND TIE BETWEEN TRUST INDENTURE
                     ACT OF 1939 AND INDENTURE PROVISIONS/1/

  Trust Indenture
    Act Section                                              Indenture Section
  ---------------                                            -----------------
     310(a)(1) .........................................           6.11
        (a)(2) .........................................           6.11
        (a)(3) .........................................           6.10
        (a)(4) .........................................       Not Applicable
        (a)(5) .........................................           6.11
        (b) ............................................           6.8, 6.11
        (c) ............................................       Not Applicable
     311(a) ............................................           6.12
        (b) ............................................           6.12
        (c) ............................................       Not Applicable
     312(a) ............................................           7.1, 7.2(a)
        (b) ............................................           7.2(b)
        (c) ............................................           7.2(c)
     313(a) ............................................           7.4
        (b) ............................................           7.4
        (c) ............................................           7.3, 7.4
        (d) ............................................           7.4
     314(a) ............................................           3.9, 7.3(a)
        (b) ............................................           3.6
        (c)(1) .........................................           8.9, 12.1(a)
        (c)(2) .........................................           8.9, 12.1(a)
        (c)(3) .........................................           8.9, 12.1(a)
        (d)(1) .........................................           8.9, 12.1(b)
        (d)(2) .........................................       Not Applicable
        (d)(3) .........................................       Not Applicable
        (e) ............................................          12.1(a)
     315(a) ............................................           6.1(b)
        (b) ............................................           6.2
        (c) ............................................           6.1(c)
        (d) ............................................           6.1(d)
        (d)(1) .........................................           6.1(d)
        (d)(2) .........................................           6.1(d)
        (d)(3) .........................................           6.1(d)
        (e) ............................................           5.14
     316(a)(1)(A) ......................................           5.12
     316(a)(1)(B) ......................................           5.13
     316(a)(2) .........................................       Not Applicable
     316(b) ............................................           5.8
     317(a)(1) .........................................           5.4
     317(a)(2) .........................................           5.4(d)

____________________________

/1/  This reconciliation and tie shall not, for any purpose, be deemed to be
     part of the within indenture.

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     317(b) ............................................           5.4(a)
     317(a) ............................................          12.7

<PAGE>

     MASTER INDENTURE, dated as of March 1, 2001, and amended and restated as of
December 31, 2001 (the "Indenture"), between First Consumers Credit Card Master
                        ---------
Note Trust, a trust organized under the laws of the State of Illinois (the
"Issuer"), and The Bank of New York, a New York banking corporation, as
 ------
indenture trustee (the "Indenture Trustee"). This Indenture may be supplemented
                        -----------------
at any time and from time to time by an indenture supplement in accordance with
Article X (an "Indenture Supplement," and together with this Indenture and any
---------      --------------------
amendments, the "Agreement"). If a conflict exists between the terms and
                 ---------
provisions of this Indenture and any Indenture Supplement, the terms and
provisions of the Indenture Supplement shall be controlling with respect to the
related Series.

                              PRELIMINARY STATEMENT

     The Issuer has duly authorized the execution and delivery of this Indenture
to provide for an issue of its asset backed notes as provided in this Indenture.
All covenants and agreements made by the Issuer herein are for the benefit and
security of the Noteholders. The Issuer is entering into this Indenture, and the
Indenture Trustee is accepting the trusts created hereby, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged.

     Simultaneously with the amendment and restatement of this Indenture, the
Issuer is amending and restating a Transfer and Servicing Agreement with First
Consumers National Bank, a national banking association, as Servicer (which
amendment and restatement will, among other things, substitute First Consumers
Credit Corporation, a Delaware corporation for First Consumers National Bank as
Seller under that Agreement), pursuant to which (a) the Seller will convey to
the Issuer all of its right, title and interest in, to and under (i) the
Collateral Certificate, which the Seller will have received from First Consumers
Master Trust, and (ii) on and after the FCMT Termination Date, the Receivables
which the Seller will have received from First Consumers National Bank pursuant
to the Receivables Purchase Agreement, dated as of the date hereof, and (b) the
Servicer will agree to service the Receivables and make collections thereon on
behalf of the Noteholders.

     Under the Receivables Purchase Agreement and the Transfer and Servicing
Agreement, Receivables arising in the Accounts from time to time will be
conveyed thereunder to the Issuer.

                                 GRANTING CLAUSE

     The Issuer hereby Grants to the Indenture Trustee, for the benefit of the
Holders of the Notes and the Enhancement Providers, all of the Issuer's right,
title and interest, whether now owned or hereafter acquired, in, to and under
(a) the Collateral Certificate, (b) the Receivables, (c) Recoveries related to
and all money, instruments, investment

<PAGE>

property and other property distributed or distributable in respect of (together
with all earnings, dividends, distributions, income, issues, and profits
relating to) the Receivables pursuant to the terms of the Transfer and Servicing
Agreement, this Indenture and any Indenture Supplement; (d) the rights to
receive certain amounts paid or payable as Interchange (if and to the extent
provided for in any Indenture Supplement), (e) all rights to security for any
Receivables (including rights to bank accounts or certificates of deposit
pledged as collateral), (f) all Permitted Investments and all money, investment
property, instruments and other property on deposit from time to time in,
credited to or related to the Collection Account, the Series Accounts and the
Excess Funding Account (including any subaccounts of any such account), and in
all interest, dividends, earnings, income and other distributions from time to
time received, receivable or otherwise distributed or distributable thereto or
in respect thereof (including any accrued discount realized on liquidation of
any investment purchased at a discount); (g) all rights, remedies, powers,
privileges and claims of the Issuer under or with respect to any Series
Enhancement and the Transfer and Servicing Agreement (whether arising pursuant
to the terms of the Transfer and Servicing Agreement or otherwise available to
the Issuer at law or in equity), including the rights of the Issuer to enforce
the Transfer and Servicing Agreement, and to give or withhold any and all
consents, requests, notices, directions, approvals, extensions or waivers under
or with respect to the Transfer and Servicing Agreement to the same extent as
the Issuer could but for the assignment and security interest granted to the
Indenture Trustee for the benefit of the Noteholders; (h) all proceeds of any
Credit Insurance policies relating to the Receivables; (i) all proceeds of any
derivative contracts between the Issuer or FCNB and a counterparty, as described
in any Indenture Supplement; (j) all money, accounts, general intangibles,
chattel paper, instruments, documents, goods, investment property, deposit
accounts, certificates of deposit, letters of credit, and advices of credit
consisting of, arising from or related to the foregoing; (k) all other property
of the Issuer; (l) all present and future claims, demands, causes and choses in
action in respect of any or all of the foregoing and all payments on or under
and all proceeds of every kind and nature whatsoever in respect of any or all of
the foregoing, including all proceeds, products, rents, receipts or profits of
the conversion, voluntary or involuntary, into cash or other property, all cash
and non-cash proceeds, and other property consisting of, arising from or
relating to all or any part of any of the foregoing; and (m) any proceeds of the
foregoing (collectively, the "Collateral").
                              ----------

                                LIMITED RECOURSE

     The obligation of the Issuer to make payments of principal, interest and
other amounts in respect of the Notes is limited by recourse only to the
Collateral.

                                       2

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                                    ARTICLE I

                                   DEFINITIONS

     Section 1.1. Definitions.
                  -----------

     Capitalized terms used herein are defined in Annex A.
                                                  -------

     Section 1.2. Other Definitional Provisions.
                  -----------------------------

     (a) All terms defined directly or by reference in this Indenture shall have
the defined meanings when used in any certificate or other document delivered
pursuant hereto unless otherwise defined therein. For purposes of this Indenture
and all such certificates and other documents, unless the context otherwise
requires: (i) accounting terms not otherwise defined in this Indenture, and
accounting terms partly defined in this Indenture to the extent not defined,
shall have the respective meanings given to them under generally accepted
accounting principles; (ii) terms defined in Article 9 of the UCC as in effect
in the applicable jurisdiction and not otherwise defined in this Indenture are
used as defined in that Article; (iii) any reference to each Rating Agency shall
only apply to any specific rating agency if such rating agency is then rating
any outstanding Series; (iv) references to any amount as on deposit or
outstanding on any particular date means such amount at the close of business on
such day; (v) the words "hereof," "herein" and "hereunder" and words of similar
import refer to this Indenture (or the certificate or other document in which
they are used) as a whole and not to any particular provision of this Indenture
(or such certificate or document); (vi) references to any Section, Schedule or
Exhibit are references to Sections, Schedules and Exhibits in or to this
Indenture (or the certificate or other document in which the reference is made),
and references to any paragraph, Section, clause or other subdivision within any
Section or definition refer to such paragraph, subsection, clause or other
subdivision of such Section or definition; (vii) the term "including" means
"including without limitation"; (viii) references to any law or regulation refer
to that law or regulation as amended from time to time and include any successor
law or regulation; (ix) references to any Person include that Person's
successors and assigns; and (x) headings are for purposes of reference only and
shall not otherwise affect the meaning or interpretation of any provision
hereof.

     (b) Whenever this Indenture refers to a provision of the TIA, the provision
is incorporated by reference in and made a part of this Indenture. The following
TIA terms used in this Indenture have the following meanings:

     "indenture securities" means the Notes
      --------------------

     "indenture security holder" means a Noteholder
      -------------------------

                                       3

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     "indenture to be qualified" means this Indenture
      -------------------------

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

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

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

                                   ARTICLE II

                                    THE NOTES

     Section 2.1. Form Generally. Any Series or Class of Notes, together with
                  --------------
the Indenture Trustee's certificate of authentication related thereto, may be
issued in bearer form (the "Bearer Notes") with attached interest coupons and a
                            ------------
special coupon (collectively, the "Coupons") or in fully registered form (the
                                   -------
"Registered Notes") and shall be in substantially the form of an exhibit to the
 ----------------
related Indenture Supplement with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this
Indenture or such Indenture Supplement, 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 such 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. The terms of any Notes set forth in an exhibit
to the related Indenture Supplement are part of the terms of this Indenture, as
applicable.

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

     Each Note will be dated the Closing Date and each Definitive Note will be
dated as of the date of its authentication.

     Section 2.2. Denominations. Except as otherwise specified in the related
                  -------------
Indenture Supplement and the Notes, each class of Notes of each Series shall be
issued in fully registered form in minimum amounts of $1,000 and in integral
multiples of $1,000 in excess thereof (except that one Note of each Class may be
issued in a different amount, so long as such amount exceeds the applicable
minimum denomination for such Class), and shall be issued upon initial issuance
as one or more Notes in an aggregate

                                       4

<PAGE>

original principal amount equal to the applicable Collateral Amount for such
Class or Series. Section 1.1.

     Section 2.3.  Execution, Authentication and Delivery. Each Note shall be
                   --------------------------------------
executed by manual or facsimile signature on behalf of the Issuer by an
Authorized Officer.

     Notes bearing the manual or facsimile signature of an individual who was,
at the time when such signature was affixed, authorized to sign on behalf of the
Issuer shall not be rendered invalid, notwithstanding the fact that such
individual ceased to be so authorized prior to the authentication and delivery
of such Notes or does not hold such office at the date of issuance of such
Notes.

     At any time and from time to time after the execution and delivery of this
Indenture, the Issuer may deliver Notes executed by the Issuer to the Indenture
Trustee for authentication and delivery, and the Indenture Trustee shall
authenticate at the written direction of the Issuer and deliver such Notes as
provided in this Indenture or the related Indenture Supplement and not
otherwise.

     No Note shall be entitled to any benefit under this Indenture or the
applicable Indenture Supplement 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 or in the related Indenture Supplement executed
by or on behalf of the Indenture Trustee by the manual signature of a duly
authorized signatory, 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 2.4.  Authenticating Agent.
                   --------------------

     (a) The Indenture Trustee, at the expense of the Servicer, may appoint one
or more authenticating agents with respect to the Notes which shall be
authorized to act on behalf of the Indenture Trustee in authenticating the Notes
in connection with the issuance, delivery, registration of transfer, exchange or
repayment of the Notes. Whenever reference is made in this Indenture to the
authentication of Notes by the Indenture Trustee or the Indenture Trustee's
certificate of authentication, such reference shall be deemed to include
authentication on behalf of the Indenture Trustee by an authenticating agent and
a certificate of authentication executed on behalf of the Indenture Trustee by
an authenticating agent. Each authenticating agent must be acceptable to the
Issuer and the Servicer.

     (b) Any institution succeeding to the corporate agency business of an
authenticating agent shall continue to be an authenticating agent without the
execution

                                       5

<PAGE>

or filing of any power or any further act on the part of the Indenture Trustee
or such authenticating agent.

     (c) An authenticating agent may at any time resign by giving written notice
of resignation to the Indenture Trustee, the Issuer and the Servicer. The
Indenture Trustee may at any time terminate the agency of an authenticating
agent by giving notice of termination to such authenticating agent and to the
Issuer and the Servicer. Upon receiving such a notice of resignation or upon
such a termination, or in case at any time an authenticating agent shall cease
to be acceptable to the Indenture Trustee or the Issuer and the Servicer, the
Indenture Trustee may promptly appoint a successor authenticating agent. Any
successor authenticating agent upon acceptance of its appointment hereunder
shall become vested with all the rights, powers and duties of its predecessor
hereunder, with like effect as if originally named as an authenticating agent.
No successor authenticating agent shall be appointed unless acceptable to the
Issuer and the Servicer.

     (d) The Issuer agrees to pay to each authenticating agent from time to time
reasonable compensation for its services under this Section 2.4.
                                                    -----------

     (e) The provisions of Sections 6.1 and 6.4 shall be applicable to any
                           ------------     ---
authenticating agent.

     (f) Pursuant to an appointment made under this Section 2.4, the Notes may
                                                    -----------
have endorsed thereon, in lieu of or in addition to the Indenture Trustee's
certificate of authentication, an alternative certificate of authentication in
substantially the following form:

"This is one of the Notes described in the within-mentioned Agreement.

____________________________

____________________________

as Authenticating Agent
for the Indenture Trustee

By: __________________________

"Authorized Signatory"

                                       6

<PAGE>

     Section 2.5. Registration of and Limitations on Transfer and Exchange of
                  -----------------------------------------------------------
Notes. The Issuer shall cause to be kept a register (the "Note Register") in
-----                                                     -------------
which the Issuer shall provide for the registration of Notes and the
registration of transfers of Notes. The Indenture Trustee initially shall be the
transfer agent and registrar (in such capacity, the "Transfer Agent and
                                                     ------------------
Registrar") for the purpose of registering Notes and transfers of Notes as
---------
herein provided. Upon any resignation of any Transfer Agent and Registrar, the
Issuer shall promptly appoint a successor or, if it elects not to make such an
appointment, assume the duties of Transfer Agent and Registrar.

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

     Upon surrender for registration of transfer of any Note at the office or
agency of the Transfer Agent and Registrar, to be maintained as provided in
Section 3.2, if the requirements of Section 8-401 of the UCC as in effect in the
-----------
applicable jurisdiction are met as certified by the Administrator to the
Indenture Trustee, the Issuer shall execute, and upon receipt of such
surrendered Note the Indenture Trustee shall authenticate and deliver to the
Noteholder, in the name of the designated transferee or transferees, one or more
new Notes (of the same Series and Class) in any authorized denominations of like
aggregate principal amount.

     At the option of a Noteholder, Notes may be exchanged for other Notes (of
the same Series and Class) in any authorized denominations and of like aggregate
principal amount, upon surrender of such Notes to be exchanged at the office or
agency of the Transfer Agent and Registrar. Whenever any Notes are so
surrendered for exchange, if the requirements of Section 8-401 of the UCC as in
effect in the applicable jurisdiction are met as certified by the Administrator
to the Indenture Trustee, the Issuer shall execute, and upon receipt of such
surrendered Note the Indenture Trustee shall authenticate and deliver to the
Noteholder, the Notes which the Noteholder making the exchange is entitled to
receive.

     All Notes issued upon any registration of transfer or exchange of Notes
shall evidence the same obligations, evidence the same debt, and be entitled to
the same rights and privileges under this Indenture, as the Notes surrendered
upon such registration of transfer or exchange.

                                       7

<PAGE>

     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 a form satisfactory to the Indenture Trustee duly executed by, the
Noteholder thereof or its attorney-in-fact duly authorized in writing, and by
such other documents as the Indenture Trustee may reasonably require.

     Any Note held by the Seller at any time after the date of its initial
issuance may be transferred or exchanged only upon the delivery to the Owner
Trustee and the Indenture Trustee of a Tax Opinion dated as of the date of such
transfer or exchange, as the case may be, with respect to such transfer or
exchange.

     The registration of transfer of any Note shall be subject to the additional
requirements, if any, set forth in the related Indenture Supplement.

     No service charge shall be made for any registration of transfer or
exchange of Notes, but the Issuer and the Transfer Agent and Registrar 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 such Notes.

     All Notes surrendered for registration of transfer and exchange shall be
canceled by the Issuer and delivered to the Indenture Trustee for subsequent
destruction without liability on the part of either. The Indenture Trustee shall
destroy the Global Note upon its exchange in full for Definitive Notes and shall
deliver a certificate of destruction to the Seller. Such certificate shall also
state that a certificate or certificates of each Foreign Clearing Agency
referred to in the applicable Indenture Supplement was received with respect to
each portion of the Global Note exchanged for Definitive Notes.

     The preceding provisions of this Section 2.5 notwithstanding, the Issuer
                                      -----------
shall not be required to make, and Transfer Agent and Registrar need not
register, transfers or exchanges of Notes for a period of twenty (20) days
preceding the due date for any payment with respect to the Note.

     If and so long as any Series of Notes are listed on the Luxembourg Stock
Exchange and such exchange shall so require, the Issuer shall appoint a
co-transfer agent and co-registrar in Luxembourg or another European city. Any
reference in this Indenture to the Transfer Agent and Registrar shall include
any co-transfer agent and co-registrar unless the context otherwise requires.
The Indenture Trustee will enter into any appropriate agency agreement with any
co-transfer agent and co-registrar not a party to this Indenture, which will
implement the provisions of this Indenture that relate to such agent.

                                       8

<PAGE>

     Section 2.6. Mutilated, Destroyed, Lost or Stolen Notes. If (a) any
                  ------------------------------------------
mutilated Note is surrendered to the Indenture Trustee, or the Indenture Trustee
receives evidence to its satisfaction of the destruction, loss or theft of any
Note, and (b) in case of destruction, loss, or theft there is delivered to the
Indenture Trustee such security or indemnity as may be required by it to hold
the Issuer, the Noteholders and the Indenture Trustee harmless, then, in the
absence of notice to the Issuer, the Transfer Agent and Registrar or the
Indenture Trustee that such Note has been acquired by a protected purchaser (as
defined in Section 8-303 of the UCC as in effect in the applicable
jurisdiction), the Issuer shall execute, and the Indenture Trustee shall
authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Note, a replacement Note of like tenor (including the
same date of issuance) and principal amount, bearing a number not
contemporaneously outstanding; provided, however, that if any such mutilated,
                               --------  -------
destroyed, lost or stolen Note shall have become or within seven (7) days shall
be due and payable, or shall have been selected or called for redemption,
instead of issuing a replacement Note, the Issuer may pay such Note without
surrender thereof, except that any mutilated Note shall be surrendered. 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 Section 8-303 of the UCC as in effect in the applicable
jurisdiction) of the original Note in lieu of which such replacement Note was
issued presents for payment such original Note, the Issuer and the Indenture
Trustee shall be entitled to recover such replacement Note (or such payment)
from the Person to whom it was delivered or any Person taking such replacement
Note from such Person to whom such replacement Note was delivered or any
assignee of such Person, except a protected purchaser, and shall be entitled to
recover upon the security or indemnity provided therefor to the extent of any
loss, damage, cost or expense incurred by the Issuer or the Indenture Trustee in
connection therewith.

     Upon the issuance of any replacement Note under this Section 2.6, the
                                                          -----------
Issuer may require the payment by the Holder of such Note of a sum sufficient to
cover any tax or other governmental charge that may be imposed in relation
thereto and any other reasonable expenses (including the fees and expenses of
the Indenture Trustee or the Transfer Agent and Registrar) connected therewith.

     Every replacement Note issued pursuant to this Section 2.6 in replacement
                                                    -----------
of any mutilated, destroyed, lost or stolen Note shall constitute complete and
indefeasible evidence of an obligation of the Trust, as if originally issued,
whether or not the mutilated, destroyed, lost or stolen Note shall be found at
any time, and shall be entitled to all the benefits of this Indenture equally
and proportionately with any and all other Notes duly issued hereunder.

     The provisions of this Section 2.6 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.

                                       9

<PAGE>

     Section 2.7.  Persons Deemed Owners. Prior to due presentment for
                   ---------------------
registration of transfer of any Note, the Issuer, the Seller, the Indenture
Trustee and any agent of the Issuer, the Seller or the Indenture Trustee shall
treat the Person in whose name any Note is registered as the owner of such Note
for the purpose of receiving distributions pursuant to the terms of the
applicable Indenture Supplement and for all other purposes whatsoever, whether
or not such Note is overdue, and neither the Issuer, the Seller, the Indenture
Trustee nor any agent of the Issuer, the Seller or the Indenture Trustee shall
be affected by any notice to the contrary.

     Section 2.8.  Appointment of Paying Agent.
                   ---------------------------

     (a) The Issuer reserves the right at any time to vary or terminate the
appointment of a Paying Agent for the Notes, and to appoint additional or other
Paying Agents, provided that it will at all times maintain the Indenture Trustee
as a Paying Agent.

     If and so long as any Notes are listed on the Luxembourg Stock Exchange and
such exchange shall so require, the Indenture Trustee will appoint a co-paying
agent in Luxembourg or another European city. The Indenture Trustee will enter
into any appropriate agency agreement with any co-paying agent not a party to
this Indenture, which will implement the provisions of this Indenture that
relate to such agent.

     Notice of all changes in the identity or specified office of a Paying Agent
will be delivered promptly to the Noteholders by the Indenture Trustee.

     (b) The Indenture Trustee shall cause each Paying Agent (other than itself)
to execute and deliver to the Indenture Trustee an instrument in which such
Paying Agent shall agree with the Indenture Trustee that such Paying Agent will
hold all sums, if any, held by it for payment to the Noteholders in trust for
the benefit of the Noteholders entitled thereto until such sums shall be paid to
such Noteholders and shall agree, and if the Indenture Trustee is the Paying
Agent it hereby agrees, that it shall comply with all requirements of the Code
regarding the withholding by the Indenture Trustee of payments in respect of
federal income taxes due from the Note Owners.

     Section 2.9.  Access to List of Noteholders' Names and Addresses.
                   --------------------------------------------------

     (a) The Issuer will furnish or cause to be furnished to the Indenture
Trustee, the Servicer or the Paying Agent, within five (5) Business Days after
receipt by the Issuer of a written request therefor from the Indenture Trustee,
the Servicer or the Paying Agent, respectively, a list of the names and
addresses of the Noteholders. Unless otherwise provided in the related Indenture
Supplement, the Holders of not less than 10% of the principal balance of the
Outstanding Notes of any Series (the "Applicants") may apply in writing to the
                                      ----------
Indenture Trustee, and if such application states that the Applicants

                                       10

<PAGE>

desire to communicate with other Noteholders of any Series with respect to their
rights under this Indenture or under the Notes and is accompanied by a copy of
the communication which such Applicants propose to transmit, then the Indenture
Trustee, after having been adequately indemnified by such Applicants for its
costs and expenses, shall afford or shall cause the Transfer Agent and Registrar
to afford such Applicants access during normal business hours to the most recent
list of Noteholders held by the Indenture Trustee and shall give the Servicer
notice that such request has been made, within five (5) Business Days after the
receipt of such application. Such list shall be as of a date no more than
forty-five (45) days prior to the date of receipt of such Applicants' request.

     (b) Every Noteholder, by receiving and holding a Note, agrees that none of
the Issuer, the Indenture Trustee, the Transfer Agent and Registrar and the
Servicer or any of their respective agents and employees shall be held
accountable by reason of the disclosure of any such information as to the names
and addresses of the Noteholders hereunder, regardless of the sources from which
such information was derived.

     Section 2.10. Cancellation. All Notes surrendered for payment, registration
                   ------------
of transfer, exchange or redemption shall, if surrendered to any Person other
than the Indenture Trustee, be delivered to the Indenture Trustee and shall be
promptly canceled by it. The Issuer may at any time deliver to the Indenture
Trustee for cancellation any Notes previously authenticated and delivered
hereunder which the Issuer may have acquired in any lawful manner whatsoever,
and all Notes so delivered shall be promptly canceled by the Indenture Trustee.
No Notes shall be authenticated in lieu of or in exchange for any Notes canceled
as provided in this Section 2.10, except as expressly permitted by this
                    ------------
Indenture. All canceled Notes held by the Indenture Trustee shall be destroyed
unless the Issuer shall direct by a timely order that they be returned to it.

     Section 2.11.  [Reserved]
                    ----------

     Section 2.12.  New Issuances.
                    -------------

     (a) Pursuant to one or more Indenture Supplements, the Seller may from time
to time direct the Owner Trustee, on behalf of the Issuer, to issue one or more
new Series of Notes (a "New Issuance"). The Notes of all outstanding Series
                        ------------
shall be equally and ratably entitled as provided herein to the benefits of this
Indenture without preference, priority or distinction, all in accordance with
the terms and provisions of this Indenture and the applicable Indenture
Supplement except, with respect to any Series or Class, as provided in the
related Indenture Supplement. Interest on and principal of the Notes of each
outstanding Series shall be paid as specified in the Indenture Supplement
relating to such outstanding Series.

                                       11

<PAGE>

     (b)  On or before the Closing Date relating to any new Series of Notes, the
parties hereto will execute and deliver an Indenture Supplement which will
specify the Principal Terms of such Series. The terms of such Indenture
Supplement may modify or amend the terms of this Indenture solely as applied to
such new Series. The obligation of the Owner Trustee to execute, on behalf of
the Issuer, the Notes of any Series and of the Indenture Trustee to authenticate
such Notes (other than any Series issued pursuant to an Indenture Supplement
dated as of the date hereof) and to execute and deliver the related Indenture
Supplement is subject to the satisfaction of the following conditions:

          (i)   on or before the fifth Business Day immediately preceding the
     Closing Date the Seller shall have given the Owner Trustee, the Indenture
     Trustee, the Servicer and each Rating Agency notice (unless such notice
     requirement is otherwise waived) of such issuance and the Closing Date;

          (ii)  the Seller shall have delivered to the Owner Trustee and the
     Indenture Trustee any related Indenture Supplement, in form satisfactory to
     the Owner Trustee and the Indenture Trustee, executed by each party hereto
     (other than the Indenture Trustee);

          (iii) the Seller shall have delivered to the Owner Trustee and the
     Indenture Trustee any related Enhancement Agreement executed by the Seller
     and the Series Enhancer;

          (iv)  the Rating Agency Condition shall have been satisfied with
     respect to such issuance;

          (v)   such issuance will not result in any Adverse Effect and the
     Seller shall have delivered to the Owner Trustee and the Indenture Trustee
     an Officer's Certificate, dated the Closing Date to the effect that the
     Seller reasonably believes that such issuance will not, based on the facts
     known to such officer at the time of such certification, have an Adverse
     Effect;

          (vi)  the Seller shall have delivered to the Owner Trustee and the
     Indenture Trustee (with a copy to each Rating Agency) (A) an Opinion of
     Counsel, dated the Closing Date with respect to such issuance, to the
     effect that, except as otherwise stated in the related Indenture
     Supplement, the Notes of the new Series will be characterized as debt for
     federal income tax purposes and (B) a Tax Opinion, dated the Closing Date
     with respect to such issuance; and

          (vii) the Aggregate Principal Balance shall not be less than the
     Minimum Aggregate Principal Balance as of the Closing Date and after giving
     effect to such issuance.

                                       12

<PAGE>

     (c) Upon satisfaction of the above conditions, pursuant to Section 2.3, the
                                                                -----------
Owner Trustee, on behalf of the Issuer, shall execute and the Indenture Trustee
shall upon written direction of the Issuer authenticate and deliver the Notes of
such Series as provided in this Indenture and the applicable Indenture
Supplement.

     (d) The Issuer may direct the Indenture Trustee in writing to deposit the
net proceeds from any New Issuance in the Excess Funding Account. The Issuer may
also specify that on any Transfer Date the proceeds from the sale of any new
Series may be withdrawn from the Excess Funding Account and treated as Shared
Principal Collections.

     Section 2.13. Book-Entry Notes. Unless otherwise provided in any related
                   ----------------
Indenture Supplement, the Notes, upon original issuance, shall be issued in the
form of typewritten or printed Notes representing the Book-Entry Notes to be
delivered to the depository specified in such Indenture Supplement which shall
be the Clearing Agency or Foreign Clearing Agency, by or on behalf of such
Series.

     The Notes of each Series shall, unless otherwise provided in the related
Indenture Supplement, initially be registered in the Note Register in the name
of the nominee of the Clearing Agency or Foreign Clearing Agency for such
Book-Entry Notes and shall be delivered to the Indenture Trustee or, pursuant to
such Clearing Agency's or Foreign Clearing Agency's instructions held by the
Indenture Trustee's agent as custodian for the Clearing Agency or Foreign
Clearing Agency.

     Unless and until Definitive Notes are issued under the limited
circumstances described in Section 2.15, no Note Owner shall be entitled to
                           ------------
receive a Definitive Note representing such Note Owner's interest in such Note.
Unless and until Definitive Notes have been issued to the Note Owners pursuant
to Section 2.15:
   ------------

     (a) the provisions of this Section 2.13 shall be in full force and effect
                                ------------
with respect to each such Series;

     (b) the Indenture Trustee shall be entitled to deal with the Clearing
Agency or Foreign Clearing Agency and the Clearing Agency Participants for all
purposes of this Indenture (including the payment of principal of and interest
on the Notes of each such Series) as the authorized representatives of the Note
Owners;

     (c) to the extent that the provisions of this Section 2.13 conflict with
                                                   ------------
any other provisions of this Indenture, the provisions of this Section 2.13
                                                               ------------
shall control with respect to each such Series;

     (d) the rights of Note Owners of each such Series shall be exercised only
through the Clearing Agency or Foreign Clearing Agency and the applicable
Clearing

                                       13

<PAGE>

Agency Participants and shall be limited to those established by law and
agreements between such Note Owners and the Clearing Agency or Foreign Clearing
Agency and/or the Clearing Agency Participants. Pursuant to the depository
agreement applicable to a Series, unless and until Definitive Notes of such
Series are issued pursuant to Section 2.15, the initial Clearing Agency shall
                              ------------
make book-entry transfers among the Clearing Agency Participants and receive and
transmit distributions of principal and interest on the Notes to such Clearing
Agency Participants; and

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

     Section 2.14. Notices to Clearing Agency or Foreign 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 2.15, the Indenture Trustee shall give all such
                   ------------
notices and communications specified herein to be given to Noteholders to the
Clearing Agency or Foreign Clearing Agency, as applicable, and shall have no
obligation to the Note Owners.

     Section 2.15. Definitive Notes. If (i) (A) the Seller advises the Indenture
                   ----------------
Trustee in writing that the Clearing Agency is no longer willing or able to
discharge properly its responsibilities as Clearing Agency with respect to the
Book-Entry Notes of a given Series and (B) the Indenture Trustee or Issuer is
unable to locate and reach an agreement on satisfactory terms with a qualified
successor, (ii) the Seller, at its option, advises the Indenture Trustee in
writing that it elects to terminate the book-entry system through the Clearing
Agency with respect to such Series or (iii) after the occurrence of a Servicer
Default, Note Owners of Notes evidencing more than 50% of the principal balance
of the Outstanding Notes (or such other percentage as specified in the related
Indenture Supplement) of such Series advise the Indenture Trustee and the
applicable Clearing Agency through the applicable Clearing Agency Participants
in writing that the continuation of a book-entry system is no longer in the best
interests of the Note Owners of such Series, the Clearing Agency shall notify
all Note Owners of such Series of the occurrence of such event and of the
availability of Definitive Notes to Note Owners of such Series requesting the
same. Upon surrender to the Indenture Trustee of the Notes of such Series,
accompanied by registration instructions from the applicable Clearing Agency,
the Issuer shall execute and the Indenture Trustee shall authenticate Definitive
Notes of such Series and shall recognize the registered holders of such
Definitive Notes as Noteholders under this Indenture. Neither the Issuer nor the
Indenture Trustee shall be liable for any delay in delivery of such
instructions, and the Issuer and the Indenture

                                       14

<PAGE>

Trustee may conclusively rely on, and shall be fully protected in relying on,
such instructions. Upon the issuance of Definitive Notes of such Series, all
references herein to obligations imposed upon or to be performed by the
applicable Clearing Agency or Foreign Clearing Agency shall be deemed to be
imposed upon and performed by the Indenture Trustee, to the extent applicable
with respect to such Definitive Notes, and the Indenture Trustee shall recognize
the registered holders of the Definitive Notes of such Series as Noteholders of
such Series hereunder. Definitive Notes will be transferable and exchangeable at
the offices of the Transfer Agent and Registrar.

     Section 2.16. Global Note. If specified in the related Indenture Supplement
                   -----------
for any Series, Notes may be initially issued in the form of a single temporary
Global Note (the "Global Note") in bearer form, without interest coupons, in the
                  -----------
denomination of the initial principal amount and substantially in the form
attached to the related Indenture Supplement. Unless otherwise specified in the
related Indenture Supplement, the provisions of this Section 2.16 shall apply to
                                                     ------------
such Global Note. The Global Note will be authenticated by the Indenture Trustee
upon the same conditions, in substantially the same manner and with the same
effect as the Definitive Notes. The Global Note may be exchanged in the manner
described in the related Indenture Supplement for Registered Notes or Bearer
Notes in definitive form. Except as otherwise specifically provided in the
Indenture Supplement, any Notes that are issued in bearer form pursuant to this
Indenture shall be issued in accordance with the requirements of Code section
163(f)(2).

     Section 2.17. Meetings of Noteholders. To the extent provided by the
                   -----------------------
Indenture Supplement for any Series issued in whole or in part in Bearer Notes,
the Servicer or the Indenture Trustee may at any time call a meeting of the
Noteholders of such Series, to be held at such time and at such place as the
Servicer and the Indenture Trustee, as the case may be, shall determine, for the
purpose of approving a modification or amendment to, or obtaining a waiver of,
any covenant or condition set forth in this Indenture with respect to such
Series or in the Notes of such Series, subject to Article X.
                                                  ---------

     Section 2.18. Uncertificated Classes. Notwithstanding anything to the
                   ----------------------
contrary contained in this Article II or in Article XI, unless otherwise
                           ----------       ----------
specified in any Indenture Supplement, any provisions contained in this Article
                                                                        -------
II and in Article XI relating to the registration, form, execution,
--        ----------
authentication, delivery, presentation, cancellation and surrender of Notes
shall not be applicable to any uncertificated Notes, provided, however, that,
                                                     --------  -------
except as otherwise specifically provided in the Indenture Supplement, any such
uncertificated Notes shall be issued in "registered form" within the meaning of
Code section 163(f)(1).

                                       15

<PAGE>

                                   ARTICLE III

                     REPRESENTATIONS AND COVENANTS OF ISSUER

         Section 3.1. Payment of Principal and Interest.
                      ---------------------------------

         (a) The Issuer will duly and punctually pay principal and interest in
accordance with the terms of the Notes as specified in the relevant Indenture
Supplement.

         (b) The Noteholders of a Series as of the Record Date in respect of a
Distribution Date shall be entitled to the interest accrued and payable and
principal payable on such Distribution Date as specified in the related
Indenture Supplement. All payment obligations under a Note are discharged to the
extent such payments are made to the Noteholder of record.

         Section 3.2. Maintenance of Office or Agency. The Issuer will maintain
                      -------------------------------
an office or agency within the State of New York and such other locations as may
be set forth in an Indenture Supplement where Notes may be presented or
surrendered for payment, where Notes may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Issuer in
respect of the Notes and this Indenture may be served. The Issuer hereby
initially appoints the Indenture Trustee at its Corporate Trust Office to serve
as its agent for the foregoing purposes. The Issuer will give prompt written
notice to the Indenture Trustee and the Noteholders 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
Indenture Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office, and the
Issuer hereby appoints the Indenture Trustee at its Corporate Trust Office as
its agent to receive all such presentations, surrenders, notices and demands.

         Section 3.3. Money for Note Payments to Be Held in Trust. As specified
                      -------------------------------------------
in Section 8.3(a) and (b) herein and in the related Indenture Supplement, all
   --------------     ---
payments of amounts due and payable with respect to the Notes which are to be
made from amounts withdrawn from the Collection Account and the Excess Funding
Account shall be made on behalf of the Issuer by the Indenture Trustee or by the
Paying Agent, and no amounts so withdrawn from the Collection Account or the
Excess Funding Account shall be paid over to or at the direction of the Issuer
except as provided in this Section 3.3 and in the related Indenture Supplement.
                           -----------

         The Issuer will cause each Paying Agent other than the Indenture
Trustee to execute and deliver to the Indenture Trustee an instrument in which
such Paying Agent shall agree with the Indenture Trustee (and if the Indenture
Trustee acts as Paying Agent,

                                       16

<PAGE>

it hereby so agrees), subject to the provisions of this Section 3.3, that such
                                                        -----------
Paying Agent, in acting as Paying Agent, is an express agent of the Issuer and,
further, 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 a Trustee Officer of the Indenture Trustee written
         notice of any default by the Issuer (or any other obligor upon the
         Notes) of which it has actual knowledge in the making of any payment
         required to be made with respect to the Notes;

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

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

              (v)     comply with all requirements of the Code with respect to
         the withholding from any payments made by it on any Notes of any
         applicable withholding taxes imposed thereon and with respect to any
         applicable reporting requirements in connection therewith.

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

         Section 3.4. Existence. The Issuer will keep in full effect its
                      ---------
existence, rights and franchises as a common law trust under the laws of the
State of Illinois (unless it becomes, or any successor Issuer hereunder is or
becomes, organized under the laws of any other State or of the United States of
America, in which case the Issuer will keep in full effect its existence, rights
and franchises under the laws of such other jurisdiction) and will obtain and
preserve its qualification to do business in each jurisdiction in which

                                       17

<PAGE>

such qualification is or shall be necessary to protect the validity and
enforceability of this Indenture, the Notes, the Collateral and each other
related instrument or agreement.

         Section 3.5. Protection of Collateral. The Issuer will from time to
                      ------------------------
time prepare, or cause to be prepared, execute and deliver all such supplements
and amendments hereto and all such financing statements, continuation
statements, instruments of further assurance and other instruments, and will
take such other action necessary or advisable to:

         (a) grant more effectively all or any portion of the Collateral as
security for the Notes;

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

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

         (d) enforce any of the Collateral; or

         (e) preserve and defend title to the Collateral securing the Notes and
the rights therein of the Indenture Trustee and the Noteholders secured thereby
against the claims of all persons and parties.

         The Issuer hereby represents that all of the representations and
warranties set out in Annex B are true and correct.
                      -------

         The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact to execute any financing statement, continuation statement or
other instrument required pursuant to this Section 3.5, but the Indenture
                                           -----------
Trustee shall not have any obligation to take any such action unless instructed
to do so by Noteholders in accordance with the terms hereof.

         The Issuer shall pay or cause to be paid any taxes levied on all or any
part of the Receivables securing the Notes.

         Section 3.6. Opinions as to Collateral.
                      -------------------------

         (a) On the Closing Date relating to any new Series of Notes, the Issuer
shall furnish to the Indenture Trustee an Opinion of Counsel satisfactory to the
Rating Agencies either stating that, in the opinion of such counsel, such action
has been taken to perfect the lien and security interest of this Indenture,
including with respect to the recording and filing of this Indenture, any
indentures supplemental hereto, and any other

                                       18

<PAGE>

requisite documents, and with respect to the execution and filing of any
financing statements and continuation statements, as are so necessary and
reciting the details of such action, or stating that, in the opinion of such
counsel, no such action is necessary to maintain the perfection of such lien and
security interest.

         (b) On or before May 30 in each calendar year, beginning in 2001, the
Issuer shall furnish to the Indenture Trustee an Opinion of Counsel satisfactory
to the Rating Agencies either stating that, in the opinion of such counsel, such
action has been taken to perfect the lien and security interest of this
Indenture, including with respect to the recording, filing, re-recording and
refiling of this Indenture, any indentures supplemental hereto and any other
requisite documents and with respect to the execution and filing of any
financing statements and continuation statements as is so necessary and reciting
the details of such action or stating that in the opinion of such counsel no
such action is necessary to maintain the perfection of such lien and security
interest. Such Opinion of Counsel shall also describe the recording, filing,
re-recording and refiling of this Indenture, any indentures supplemental hereto
and any other requisite documents and the execution and filing of any financing
statements and continuation statements that will, in the opinion of such
counsel, be required to maintain the perfection of the lien and security
interest of this Indenture until May 30 in the following calendar year.

         Section 3.7. Performance of Obligations; Servicing of Receivables.
                      ----------------------------------------------------

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

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

         (c) The Issuer will punctually perform and observe all of its
obligations and agreements contained in this Indenture, the other Transaction
Documents and in the instruments and agreements relating to the Collateral,
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 Transfer and Servicing Agreement in accordance with and within
the time periods provided for herein and therein.

                                       19

<PAGE>

         (d) If the Issuer shall have knowledge of the occurrence of a Servicer
Default under the Transfer and Servicing Agreement, the Issuer shall cause the
Indenture Trustee to promptly notify the Rating Agencies thereof, and shall
cause the Indenture Trustee to specify in such notice the action, if any, being
taken with respect to such default. If a Servicer Default shall arise from the
failure of the Servicer to perform any of its duties or obligations under the
Transfer and Servicing Agreement with respect to the Receivables, the Issuer
shall take all reasonable steps available to it to remedy such failure.

         (e) On and after the receipt by the Servicer of a Termination Notice
pursuant to Section 7.1 of the Transfer and Servicing Agreement, the Servicer
            -----------
shall continue to perform all servicing functions under this Indenture until the
date specified in the Termination Notice or until a date mutually agreed upon by
the Servicer and the Indenture Trustee. As promptly as possible after the giving
of a Termination Notice to the Servicer, the Indenture Trustee shall appoint a
Successor Servicer, and such Successor Servicer shall accept its appointment by
a written assumption in a form acceptable to the Indenture Trustee. In the event
that a Successor Servicer has not been appointed and accepted its appointment at
the time when the Servicer ceases to act as Servicer, the Indenture Trustee in
accordance with Section 7.2 of the Transfer and Servicing Agreement without
                -----------
further action shall automatically be appointed the Successor Servicer. The
Indenture Trustee may delegate any of its servicing obligations to an Affiliate
or agent in accordance with Section 3.1(b) and Section 5.7 of the Transfer and
                            --------------     -----------
Servicing Agreement. Notwithstanding the foregoing, the Indenture Trustee shall,
if it is legally unable so to act, petition at the expense of the Servicer a
court of competent jurisdiction to appoint any established institution
qualifying as an Eligible Servicer as the Successor Servicer hereunder. The
Indenture Trustee shall give prompt notice to each Rating Agency and each Series
Enhancer upon the appointment of a Successor Servicer. Upon its appointment, the
Successor Servicer shall be the successor in all respects to the Servicer with
respect to servicing functions under this Indenture and shall be subject to all
the responsibilities, duties and liabilities relating thereto placed on the
Servicer by the terms and provisions hereof, and all references in this
Indenture to the Servicer shall be deemed to refer to the Successor Servicer. In
connection with any Termination Notice, the Indenture Trustee will review any
bids which it obtains from Eligible Servicers and shall be permitted to appoint
any Eligible Servicer submitting such a bid as a Successor Servicer for
servicing compensation, subject to the limitations set forth in Section 7.2 of
                                                                -----------
the Transfer and Servicing Agreement. Notwithstanding anything else herein to
the contrary, in no event shall the Indenture Trustee be liable for any
servicing fee.

         (f) Without derogating from the absolute nature of the assignment
granted to the Indenture Trustee under this Indenture or the rights of the
Indenture Trustee hereunder, the Issuer agrees (i) that it will not, without the
prior written consent of the Indenture Trustee and satisfaction of the Rating
Agency Condition, amend, modify, waive, supplement, terminate or surrender, or
agree to any amendment, modification,

                                       20

<PAGE>

supplement, termination, waiver or surrender of, the terms of any Collateral
(except to the extent otherwise provided in the Transfer and Servicing
Agreement) or the Transaction Documents (except to the extent otherwise provided
in the Transaction Documents), or waive timely performance or observance by the
Servicer or the Seller under the Transfer and Servicing Agreement; and (ii) that
any such amendment shall not (A) increase or reduce in any manner the amount of,
or accelerate or delay the timing of, collections of payments on the Receivables
or distributions that are required to be made for the benefit of the Noteholders
or (B) reduce the aforesaid percentage of the Notes that is required to consent
to any such amendment, without the consent of the Holders of all the Outstanding
Notes. If any such amendment, modification, supplement or waiver shall be so
consented to by the Indenture Trustee and such Noteholders, the Issuer agrees,
promptly following a request by the Indenture Trustee to do so, to execute and
deliver, in its own name and at its own expense, such agreements, instruments,
consents and other documents as the Indenture Trustee may deem necessary or
appropriate in the circumstances.

         Section 3.8. Negative Covenants. So long as any Notes are Outstanding,
                      ------------------
the Issuer will not:

         (a) sell, transfer, exchange, or otherwise dispose of any part of the
Collateral unless directed to do so by the Indenture Trustee, except as
expressly permitted by this Indenture and any Indenture Supplement, the
Receivables Purchase Agreement, the Trust Agreement or the Transfer and
Servicing Agreement;

         (b) claim any credit on, or make any deduction from, the principal and
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 any taxes
levied or assessed upon any part of the Collateral;

         (c) incur, assume, guarantee or otherwise become liable, directly or
indirectly, for any indebtedness other than incurred under the Notes and this
Indenture;

         (d) (i) permit the validity or effectiveness of this Indenture to be
impaired, or permit the lien of this Indenture to be amended, hypothecated,
subordinated, terminated or discharged, or permit any Person to be released from
any covenants or obligations with respect to the Notes under this Indenture
except as may be expressly permitted hereby, (ii) permit any Lien, charge,
excise, claim, security interest, mortgage or other encumbrance (other than the
lien of this Indenture) to be created on or extend to or otherwise arise upon or
burden the Collateral or any part thereof or any interest therein or the
proceeds thereof or (iii) permit the lien of this Indenture not to constitute a
valid first priority security interest (other than with respect to a tax,
mechanics, or similar lien) in the Collateral; or

                                       21

<PAGE>

         (e)  voluntarily dissolve or liquidate in whole or in part.

         Section 3.9.  Statements as to Compliance. The Issuer will deliver to
                       ---------------------------
the Indenture Trustee and the Rating Agencies, within 120 days after the end of
each fiscal year of the Issuer at the end of which any Notes are outstanding
(commencing within 120 days after the end of the fiscal year 2001), an Officer's
Certificate stating, as to the Authorized Officer signing such Officer's
Certificate, that

              (i)      a review of the activities of the Issuer during the
         12-month period ending at the end of such fiscal year and of
         performance under this Indenture has been made under such Authorized
         Officer's supervision, and

              (ii)     to the best of such Authorized Officer's knowledge, based
         on such review, the Issuer has complied with all conditions and
         covenants under this Indenture throughout such year, or, if there has
         been a default in 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:

                       (1) the Person (if other than the Issuer) formed by or
              surviving such consolidation or merger (the "Surviving Person")
                                                           ----------------
              (i) is organized and existing under the laws of the United States
              of America or any state or the District of Columbia, (ii) is not
              subject to regulation as an "investment company" under the
              Investment Company Act and (iii) expressly assumes, by an
              indenture supplemental hereto, executed and delivered to the
              Indenture Trustee, in a form satisfactory to the Indenture
              Trustee, the obligation to make due and punctual payment of the
              principal of and interest on all Notes and the performance of
              every covenant of this Indenture on the part of the Issuer to be
              performed or observed;

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

                       (3) the Issuer shall have delivered to the Indenture
              Trustee an Officer's Certificate and an Opinion of Counsel each
              stating that (i) such consolidation or merger and such
              supplemental indenture comply

                                       22

<PAGE>

              with this Section 3.10, (ii) all conditions precedent provided for
                        ------------
              in this Section 3.10 relating to such transaction have been
                      ------------
              complied with (including any filing required by the Exchange Act),
              and (iii) such supplemental indenture is duly authorized, executed
              and delivered and is valid, binding and enforceable against the
              Surviving Person;

                 (4)  the Rating Agency Condition shall have been satisfied with
              respect to such transaction;

                 (5)  the Issuer shall have received a Tax Opinion with respect
              to such consolidation or merger; and

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

         For the avoidance of doubt, this Section 3.10 shall not apply to the
                                          ------------
transfer of the Receivables and other assets to the Issuer on the FCMT
Termination Date.

         (b)  The Issuer shall not convey or transfer any of its properties or
assets, including those included in the Collateral, substantially as an entirety
to any Person, unless:

                 (1)  the Person that acquires by conveyance or transfer the
              properties and assets of the Issuer the conveyance or transfer of
              which is hereby restricted (the "Acquiring Person") (A) is a
                                               ----------------
              United States citizen or a Person organized and existing under the
              laws of the United States of America or any state, or the District
              of Columbia, (B) is not subject to regulation as an "investment
              company" under the Investment Company Act, (C) expressly assumes,
              by an indenture supplemental hereto, executed and delivered to the
              Indenture Trustee, in form satisfactory to the Indenture Trustee,
              the obligation to make due and punctual payments of the principal
              of and interest on all Notes and the performance of every covenant
              of this Indenture on the part of the Issuer to be performed or
              observed, (D) 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, (E) 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 (F) 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;

                                       23

<PAGE>

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

               (3) the Rating Agency Condition shall have been satisfied with
          respect to such transaction;

               (4) the Issuer shall have received a Tax Opinion with respect to
          such transaction;

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

               (6) the Issuer shall have delivered to the Indenture Trustee an
          Officer's Certificate and an Opinion of Counsel each stating that (i)
          such conveyance or transfer and such supplemental indenture comply
          with this Section 3.10, (ii) all conditions precedent herein provided
                    ------------
          for relating to such transaction have been complied with (including
          any filing required by the Exchange Act), and (iii) such supplemental
          indenture is duly authorized, executed and delivered and is valid,
          binding and enforceable against the Acquiring Person.

     Section 3.11. Successor Substituted. Upon any consolidation or merger, or
                   ---------------------
any conveyance or transfer of the properties and assets of the Issuer
substantially as an entirety in accordance with Section 3.10, the Surviving
                                                ------------
Person or the Acquiring Person, as the case may be, 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. In the event of any such conveyance or transfer, the Person named
as the Issuer in the first paragraph of this Indenture or any successor which
shall theretofore have become such in the manner prescribed in this Section 3.11
                                                                    ------------
shall be released from its obligations under this Indenture as issued
immediately upon the effectiveness of such conveyance or transfer, provided that
the Issuer shall not be released from any obligations or liabilities to the
Indenture Trustee or the Noteholders arising prior to such effectiveness.

     Section 3.12. No Other Business. The Issuer shall not engage in any
                   -----------------
business other than (i) purchasing, owning and managing the Trust Assets and the
proceeds thereof in the manner contemplated by this Indenture and the other
Transaction Documents, (ii) issuing and making payments in respect of the Notes
and (iii) all activities related thereto.

                                       24

<PAGE>

     Section 3.13. [Reserved].

     Section 3.14. Servicer's Obligations. The Issuer shall cause the Servicer
                   ----------------------
to comply with all of its obligations under the Transaction Documents.

     Section 3.15. Investments. Except as contemplated by this Indenture or the
                   -----------
Transfer and Servicing Agreement, the Issuer shall not own, purchase, repurchase
or acquire (or agree contingently to do so) any stock, obligations, assets or
securities of, or any other interest in, or make any capital contribution to,
any other Person.

     Section 3.16. 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. Removal of Administrator. So long as any Notes are
                   ------------------------
outstanding, the Issuer shall not remove the Administrator without cause unless
the Rating Agency Condition shall have been satisfied in connection with such
removal.

     Section 3.18. Restricted Payments. The Issuer shall not, directly or
                   -------------------
indirectly, (i) pay any dividend or make any distribution (by reduction of
capital or otherwise), whether in cash, property, securities or a combination
thereof, to the Owner Trustee 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 Servicer, (ii) redeem, purchase, retire or
otherwise acquire for value any such ownership or equity interest or security or
(iii) set aside or otherwise segregate any amounts for any such purpose;
provided, however, that the Issuer may make, or cause to be made, (x)
--------  -------
distributions as contemplated by, and to the extent funds are available for such
purpose under, the Transaction Documents and (y) payments to the Indenture
Trustee pursuant to Section 6.7. The Issuer will not, directly or indirectly,
                    -----------
make payments to or distributions from the Collection Account except in
accordance with the Transaction Documents.

     Section 3.19. Notice of Events of Default. The Issuer agrees to give a
                   ---------------------------
Trustee Officer of the Indenture Trustee and the Rating Agencies prompt written
notice of each Event of Default hereunder and written notice of each default on
the part of the Servicer or the Seller of its obligations under the Transfer and
Servicing Agreement and each default on the part of a Seller of its obligations
under the Receivables Purchase Agreement, as applicable.

     Section 3.20. Further Instruments and Acts. Upon request of the Indenture
                   ----------------------------
Trustee, the Issuer will execute and deliver such further instruments and do
such further acts as may be reasonably necessary or proper to carry out more
effectively the purpose of this Indenture.

                                       25

<PAGE>

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

     Section 4.1. Satisfaction and Discharge of this Indenture. This Indenture
                  --------------------------------------------
shall cease to be of further effect with respect to the Notes except as to (a)
rights of registration of transfer and exchange, (b) substitution of mutilated,
destroyed, lost or stolen Notes, (c) the rights of Noteholders to receive
payments of principal thereof and interest thereon, (d) Sections 3.3, 3.7, 3.8,
                                                        ------------  ---  ---
3.11, 3.12 and 12.16, (e) the rights and immunities of the Indenture Trustee
----  ----     -----
hereunder, including the rights of the Indenture Trustee under Section 6.7, and
                                                               -----------
the obligations of the Indenture Trustee under Section 4.2, and (f) the rights
                                               -----------
of Noteholders as beneficiaries hereof with respect to the property so deposited
with the Indenture Trustee and payable to all or any of them, and the Indenture
Trustee, on written 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:

               (i)  either

                         (A) all Notes theretofore authenticated and delivered
                    (other than (1) Notes which have been destroyed, lost or
                    stolen and which have been replaced, or paid as provided in
                    Section 2.6, and (2) Notes for whose full payment money has
                    -----------
                    theretofore been deposited in trust or segregated and held
                    in trust by the Issuer and thereafter repaid to the Issuer
                    or discharged from such trust, as provided in Section 3.3)
                                                                  -----------
                    have been delivered to the Indenture Trustee for
                    cancellation; or

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

                    (1)  have become due and payable;

                    (2)  will become due and payable at the Series Termination
               Date for such Class or Series of Notes; or

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

                    (4)  and the Issuer, in the case of (1), (2) or (3) above,
               has irrevocably deposited or caused to be irrevocably deposited
               with the Indenture Trustee cash or direct obligations of or
               obligations guaranteed

                                       26

<PAGE>

          by the United States of America (which will mature prior to the date
          such amounts are payable), in trust for such purpose, in an amount
          sufficient to pay and discharge the entire indebtedness on such Notes
          not theretofore delivered to the Indenture Trustee for cancellation
          when due at the Series Termination Date for such Class or Series of
          Notes or the Redemption Date (if Notes shall have been called for
          redemption pursuant to the related Indenture Supplement), as the case
          may be;

          (ii)  the Issuer has paid or caused to be paid all other sums payable
     hereunder by the Issuer; and

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

     Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Issuer to the Indenture Trustee under Section 6.7 and of the
                                                         -----------
Indenture Trustee to the Noteholders under Section 4.2 shall survive.
                                           -----------

     Section 4.2. Application of Issuer Money. All monies deposited with the
                  ---------------------------
Indenture Trustee pursuant to Section 4.1 shall be held in trust and applied by
                              -----------
it, in accordance with the provisions of the Notes, this Indenture and the
applicable Indenture Supplement, to make payments, either directly or through
any Paying Agent to the Noteholders and for the payment in respect of which such
monies have been deposited with the Indenture Trustee, of all sums due and to
become due thereon for principal and interest; but such monies need not be
segregated from other funds except to the extent required herein or in the
Transfer and Servicing Agreement or required by law.

                                    ARTICLE V

                      PAY OUT EVENTS, DEFAULTS AND REMEDIES

     Section 5.1. Pay Out Events. If any one of the following events (each, a
                  --------------
"Trust Pay Out Event") shall occur:
 -------------------

     (a) the occurrence of an Insolvency Event relating to the Seller or FCNB;

     (b) a Transfer Restriction Event shall occur; or

                                       27

<PAGE>

     (c) the Issuer shall become subject to regulation by the Commission as an
"investment company" within the meaning of the Investment Company Act;

then a Pay Out Event with respect to all Series of Notes shall occur without any
notice or other action on the part of the Indenture Trustee or the Noteholders
immediately upon the occurrence of such event.

     Upon the occurrence of a Pay Out Event, payment on the Notes of each Series
will be made in accordance with the terms of the related Indenture Supplement.

     Section 5.2. Events of Default. "Event of Default," wherever used herein,
                  -----------------   ----------------
means with respect to any Series any one of the following events (whatever the
reason for such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

     (a) default in the payment of the principal of any Note of that Series, if
and to the extent not previously paid, when the same becomes due and payable on
its Series Termination Date; or

     (b) default in the payment of any interest on any Note of that Series when
the same becomes due and payable, and such default shall continue for a period
of thirty-five (35) days; or

     (c) the filing of a decree or order for relief by a court having
jurisdiction in the premises in respect of the Issuer 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, conservator,
liquidator, assignee, custodian, trustee, sequestrator or similar official for
the Issuer 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
sixty (60) consecutive days; or

     (d) the commencement by the Issuer of a voluntary case under any applicable
federal or state bankruptcy, insolvency or other similar law now or hereafter in
effect, or the consent by the Issuer to the entry of an order for relief in an
involuntary case under any such law, or the consent by the Issuer to the
appointment of or the taking possession by a receiver, liquidator, assignee,
custodian, trustee, sequestrator, conservator or similar official of the Issuer,
or the making by the Issuer of any general assignment for the benefit of
creditors, or the failure by the Issuer generally to pay, or the admission in
writing by the Issuer of its inability to pay, its debts as such debts become
due, or the taking of action by the Issuer in furtherance of any of the
foregoing; or

                                       28

<PAGE>

     (e) default in the observance or performance of any covenant or agreement
of the Issuer made in this Indenture made in respect of the Notes of such Series
(other than a covenant or agreement, a default in the observance or performance
of which is elsewhere in this Section 5.2 specifically dealt with) (all of such
                              -----------
covenants and agreements in the Indenture which are not expressly stated to be
for the benefit of a particular Series being deemed to be in respect of the
Notes of all Series for this purpose) and such default shall continue or not be
cured for a period of sixty (60) days after there shall have been given, by
registered or certified mail, return receipt requested to the Issuer by the
Indenture Trustee or to the Issuer and the Indenture Trustee by the Holders of
Notes representing at least 25% of the principal balance of the Outstanding
Notes of such Series, a written notice specifying such default and requiring it
to be remedied and stating that such notice is a "Notice of Default" hereunder
                                                  -----------------
and, as a result of such default, the interests of the Holders of the Notes are
materially and adversely affected and continue to be materially and adversely
affected during the 60-day period; or

     (f) any additional events specified in the Indenture Supplement related to
such Series.

     The Issuer shall deliver to a Trustee Officer of the Indenture Trustee,
within five (5) days after the occurrence thereof, written notice in the form of
an Officer's Certificate of any event which with the giving of notice and the
lapse of time would become an Event of Default, its status and what action the
Issuer is taking or proposes to take with respect thereto.

     Section 5.3. Acceleration of Maturity; Rescission and Annulment. If an
                  --------------------------------------------------
Event of Default described in paragraph (a), (b) or (e) of Section 5.2 should
                              -------------  ---    ---    -----------
occur and be continuing with respect to a Series, then and in every such case
the Indenture Trustee or the Holders of Notes representing more than 50% of the
principal balance of the Outstanding Notes of such Series may declare all the
Notes of such Series to be immediately due and payable, by a notice in writing
to the Issuer (and to a Trustee Officer of the Indenture Trustee if declared by
Noteholders), and upon any such declaration the unpaid principal amount of such
Notes, together with accrued and unpaid interest thereon through the date of
acceleration, shall become immediately due and payable.

     If an Event of Default described in paragraph (c) or (d) of Section 5.2
                                         -------------    ---    -----------
should occur and be continuing, then the unpaid principal of the Notes, together
with accrued and unpaid interest thereon through the date of acceleration, shall
automatically become due and payable.

     At any time after such declaration of acceleration of maturity has been
made and before a judgment or decree for payment of the money due has been
obtained by the Indenture Trustee as hereinafter provided in this Article V, the
                                                                  ---------
Holders of Notes

                                       29

<PAGE>

representing more than 50% of the principal balance of the Outstanding Notes of
such Series, by written notice to the Issuer, a Trustee Officer of the Indenture
Trustee and the Rating Agencies, may rescind and annul such declaration and its
consequences; provided, that:
              --------  ----

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

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

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

          (iii) all Events of Default, other than the nonpayment of the
     principal of the Notes that has become due solely by such acceleration,
     have been cured or waived as provided in Section 5.13.
                                              ------------

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

     Section 5.4. Collection of Indebtedness and Suits for Enforcement by
                  -------------------------------------------------------
Indenture Trustee.
-----------------

     (a) The Issuer covenants that if (i) default is made in the payment of any
interest on any Note when the same becomes due and payable, and such default
continues for a period of thirty-five (35) days following the date on which such
interest became due and payable, or (ii) default is made in the payment of
principal of any Note, if and to the extent not previously paid, when the same
becomes due and payable on the Series Termination Date, the Issuer will, upon
demand of the Indenture Trustee, pay to it, for the benefit of the Holders of
the Notes of the affected Series, 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,
interest upon overdue installments of interest, as specified in the related
Indenture Supplement, and in addition thereto will pay such further amount as
shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Indenture
Trustee and its agents and counsel.

     (b) In case the Issuer shall fail forthwith to pay such amounts upon such
demand, the Indenture Trustee, in its own name and as trustee of an express
trust, may

                                       30

<PAGE>

institute a Proceeding for the collection of the sums so due and unpaid, and may
prosecute such Proceeding to judgment or final decree, and may enforce the same
against the Issuer or other obligor upon such Notes and collect in the manner
provided by law out of the property of the Issuer or other obligor upon such
Notes, wherever situated, the moneys adjudged or decreed to be payable.

     (c)  If an Event of Default occurs and is continuing, the Indenture Trustee
may, as more particularly provided in Section 5.5, in its discretion, proceed to
                                      -----------
protect and enforce its rights and the rights of the Noteholders of the affected
Series, by such appropriate Proceedings as the Indenture Trustee shall deem most
effective to protect and enforce any such rights, whether for the specific
enforcement of any covenant or agreement in this Indenture or in aid of the
exercise of any power granted herein, or to enforce any other proper remedy or
legal or equitable right vested in the Indenture Trustee by this Indenture or by
law.

     (d)  In case there shall be pending, relative to the Issuer or any other
obligor upon the Notes of the affected Series, or any Person having or claiming
an ownership interest in the Collateral, Proceedings under Title 11 of the
United States Code or any other applicable federal or state bankruptcy,
insolvency or other similar law now or hereafter in effect, or in case a
receiver, conservator, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator, custodian or other 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 of such Series, or to the
creditors or property of the Issuer or such other obligor, the Indenture
Trustee, irrespective of whether the principal of any Notes shall then be due
and payable as therein expressed or by declaration or otherwise and irrespective
of whether the Indenture Trustee shall have made any demand pursuant to the
provisions of this Section 5.4, 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 of such
     Series and to file such other papers or documents as may be necessary or
     advisable in order to have the claims of the Indenture Trustee (including
     any claim for reasonable compensation to the Indenture Trustee and each
     predecessor Indenture Trustee, and their respective agents, attorneys and
     counsel, and for reimbursement of all expenses and liabilities incurred,
     and all advances made, by the Indenture Trustee and each predecessor
     Indenture Trustee, except as a result of negligence or willful misconduct)
     and of the Noteholders of such Series allowed in such Proceedings;

          (ii) unless prohibited by applicable law and regulations, to vote on
     behalf of the Holders of Notes of such Series in any election of a trustee,
     a

                                       31

<PAGE>

     standby trustee or Person performing similar functions in any such
     Proceedings;

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

          (iv)  to file such proofs of claim and other papers or documents as
     may be necessary or advisable in order to have the claims of the Indenture
     Trustee or the Holders of Notes of such Series allowed in any judicial
     Proceedings relative to the Issuer, its creditors and its property;

and any trustee, receiver, conservator, liquidator, custodian, assignee,
sequestrator or other similar official in any such Proceeding is hereby
authorized by each of such Noteholders to make payments to the Indenture
Trustee, and, in the event that the Indenture Trustee shall consent to the
making of payments directly to such Noteholders, to pay to the Indenture Trustee
such amounts as shall be sufficient to cover reasonable compensation to the
Indenture Trustee, each predecessor Indenture Trustee and their respective
agents, attorneys and counsel, and all other expenses and liabilities incurred,
and all advances made, by the Indenture Trustee and each predecessor Indenture
Trustee except as a result of negligence or willful misconduct.

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

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

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

                                       32

<PAGE>

     Section 5.5. Remedies; Priorities.
                  --------------------

     (a)  If an Event of Default shall have occurred and be continuing with
respect to any Series, and the Notes of such Series have been accelerated
pursuant to Section 5.3, the Indenture Trustee may do one or more of the
            -----------
following (subject to Sections 5.6 and 12.16):
                      ------------     -----

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

          (ii)  take any other appropriate action to protect and enforce the
     rights and remedies of the Indenture Trustee and the Holders of the Notes
     of the affected Series;

          (iii) cause the Issuer to sell Principal Receivables (or interests
     therein) in an amount equal to the Collateral Amount of the accelerated
     Series and the related Finance Charge Receivables in accordance with
     Section 5.16;
     ------------

provided, however, that the Indenture Trustee may not exercise the remedy
--------  -------
described in subparagraph (iii) above unless (A) (1) the Holders of Notes
representing 100% of the principal balance of the Outstanding Notes of the
affected Series consent in writing thereto, (2) the Indenture Trustee determines
that any proceeds of such exercise distributable to the Noteholders of the
affected Series are sufficient to discharge in full all amounts then due and
unpaid upon the Notes for principal and interest and is directed to exercise
this remedy by Holders of Notes representing more than 50% of the principal
balance of the Outstanding Notes of such Series, or (3) the Indenture Trustee
determines that the Collateral may not continue to provide sufficient funds for
the payment of principal of and interest on the Notes as they would have become
due if the Notes had not been declared due and payable, and the Indenture
Trustee obtains the consent of the Holders of Notes representing at least
66-2/3% of the principal balance of the Outstanding Notes of each Class of such
Series and (B) the Indenture Trustee has obtained an Opinion of Counsel to the
effect that the exercise of such remedy complies with applicable federal and
state securities laws. In determining such sufficiency or insufficiency with
respect to clauses (A)(2) and (A)(3), the Indenture Trustee may, but need not,
obtain and conclusively rely upon an opinion of an Independent investment
banking or accounting firm of national reputation as to the feasibility of such
proposed action and as to the sufficiency of the Collateral for such purpose.

                                       33

<PAGE>

     The remedies provided in this Section 5.5(a) are the exclusive remedies
                                   --------------
provided to the Noteholders with respect to the Collateral and each of the
Noteholders (by their acceptance of their respective interests in the Notes) or
the Indenture Trustee hereby expressly waive any other remedy that might have
been available under the applicable UCC.

     (b) If the Indenture Trustee collects any money or property pursuant to
this Article V following the acceleration of the Notes of the affected Series
pursuant to Section 5.3 (so long as such a declaration shall not have been
rescinded or annulled), it shall pay out the money or property in the following
order:

     FIRST:  to the Indenture Trustee for amounts due pursuant to Section 6.7;
                                                                  -----------
             and

     SECOND: unless otherwise specified in the related Indenture Supplement, to
             the Servicer for distribution in accordance with Article IV of the
             related Indenture Supplement with such amounts being deemed to be
             Principal Collections and Finance Charge Collections in the same
             proportion as (x) the outstanding principal balance of the Notes
             bears to (y) the sum of the accrued and unpaid interest on the
             Notes and other fees and expenses payable in connection therewith
             under the applicable Indenture Supplement, including the amounts
             payable under any Enhancements with respect to such Series.

     (c) The Indenture Trustee may, upon notification to the Issuer, fix a
record date and payment date for any payment to Noteholders of the affected
Series pursuant to this Section 5.5. At least fifteen (15) days before such
                        -----------
record date, the Indenture Trustee shall mail or send by facsimile, at the
expense of the Servicer, to each such Noteholder a notice that states the record
date, the payment date and the amount to be paid.

     Section 5.5. Optional Preservation of the Collateral. If the Notes of any
                  ---------------------------------------
Series have been declared to be due and payable under Section 5.3 following an
                                                      -----------
Event of Default and such declaration and its consequences have not been
rescinded and annulled, and the Indenture Trustee has not received directions
from the Noteholders pursuant to Section 5.12, the Indenture Trustee may, but
                                 ------------
need not, elect to maintain possession of the portion of the Collateral which
secures such Notes and apply proceeds of the Collateral to make payments on such
Notes to the extent such proceeds are available therefor. 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
Indenture Trustee shall take such desire into account when determining whether
or not to maintain possession of the Collateral. In determining whether to
maintain possession of the Collateral, the Indenture Trustee may, but need not,
obtain and conclusively rely upon an

                                       34

<PAGE>

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 Assets for such purpose.

     Section 5.7. Limitation on Suits. No Noteholder shall have any right to
                  -------------------
institute any proceedings, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless:

     (a) the Holders of Notes representing not less than 25% of the principal
balance of the Outstanding Notes of each affected Series have made written
request to the Indenture Trustee to institute such proceeding in its own name as
indenture trustee;

     (b) such Noteholder or Noteholders has previously given written notice to
the Indenture Trustee of a continuing Event of Default;

     (c) such Noteholder or Noteholders has offered to the Indenture Trustee
indemnity satisfactory to it against the costs, expenses and liabilities to be
incurred in compliance with such request;

     (d) the Indenture Trustee for sixty (60) days after its receipt of such
request and offer of indemnity has failed to institute any such Proceeding; and

     (e) no direction inconsistent with such written request has been given to
the Indenture Trustee during such 60-day period by the Holders of Notes
representing more than 50% of the principal balance of the Outstanding Notes of
such Series;

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

     In the event the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two (2) or more groups of Noteholders
of such affected Series, each representing no more than 50% of the principal
balance of the Outstanding Notes of such Series, the Indenture Trustee in its
sole discretion may determine what action, if any, shall be taken,
notwithstanding any other provisions of this Indenture.

                                       35

<PAGE>

     Section 5.8. Unconditional Rights of Noteholders to Receive Principal and
                  ------------------------------------------------------------
Interest. Notwithstanding any other provision in this Indenture, each Noteholder
--------
shall have the right which is absolute and unconditional to receive payment of
the principal of and interest in respect of such Note as such principal and
interest becomes due and payable and to institute suit for the enforcement of
any such payment, and such right shall not be impaired without the consent of
such Noteholder.

     Section 5.9. Restoration of Rights and Remedies. If the Indenture Trustee
                  ----------------------------------
or any Noteholder has instituted any Proceeding to enforce any right or remedy
under this Indenture and such Proceeding has been discontinued or abandoned, or
has been determined adversely to the Indenture Trustee or to such Noteholder,
then and in every such case the Issuer, the Indenture Trustee and the Noteholder
shall, subject to any determination in such Proceeding, be restored severally
and respectively to their former positions hereunder, and thereafter all rights
and remedies of the Indenture Trustee and the Noteholders shall continue as
though no such Proceeding had been instituted.

     Section 5.10. Rights and Remedies Cumulative. No right, remedy, power or
                   ------------------------------
privilege herein conferred upon or reserved to the Indenture Trustee or to the
Noteholders is intended to be exclusive of any other right, remedy, power or
privilege, and every right, remedy, power or privilege shall, to the extent
permitted by law, be cumulative and in addition to every other right, remedy,
power or privilege given hereunder or now or hereafter existing at law or in
equity or otherwise. The assertion or exercise of any right or remedy shall not
preclude any other further assertion or the exercise of any other appropriate
right or remedy.

     Section 5.11. Delay or Omission Not Waiver. No failure to exercise and no
                   ----------------------------
delay in exercising, on the part of the Indenture Trustee or of any Noteholder
or other Person, any right or remedy occurring hereunder upon any Event of
Default shall impair any such right or remedy or constitute a waiver thereof of
any such Event of Default or an acquiescence therein. Every right and remedy
given by this Article V or by law to the Indenture Trustee or to the Noteholders
              ---------
may be exercised from time to time, and as often as may be deemed expedient, by
the Indenture Trustee or by the Noteholders, as the case may be.

     Section 5.12. Rights of Noteholders to Direct Indenture Trustee. The
                   -------------------------------------------------
Holders of Notes representing more than 50% of the principal balance of the
Outstanding Notes of any affected Series shall have the right to direct in
writing the time, method and place of conducting any Proceeding for any remedy
available to the Indenture Trustee with respect to such Series or exercising any
trust or power conferred on the Indenture Trustee with respect to such Series;
provided, however, that subject to Section 6.1:
--------  -------                  -----------

                                       36

<PAGE>

    (a) the Indenture Trustee shall have the right to decline any such
direction if the Indenture Trustee, after being advised by counsel, determines
that the action so directed is in conflict with any rule of law or with this
Indenture, and

     (b) the Indenture Trustee shall have the right to decline any such
direction if the Indenture Trustee in good faith shall, by a Trustee Officer of
the Indenture Trustee, determine that the Proceedings so directed would be
illegal or involve the Indenture Trustee in personal liability or be unjustly
prejudicial to the Noteholders not parties to such direction.

     Section 5.13. Waiver of Past Defaults. Prior to the declaration of the
                   -----------------------
acceleration of the maturity of the Notes of the affected Series as provided in
Section 5.3, Holders of Notes representing more than 50% of the principal
-----------
balance of the Outstanding Notes of such Series (or with respect to any such
Series with two or more Classes, of each Class), may, on behalf of all such
Noteholders, waive in writing any past default, with written notice to the
Indenture Trustee, with respect to such Notes and its consequences, except a
default:

     (a) in the payment of the principal or interest in respect of any Note of
such Series, or

     (b) in respect of a covenant or provision hereof that under Section 10.2
                                                                 ------------
cannot be modified or amended without the consent of the Noteholder of each
Outstanding Note affected.

     Upon any such written waiver, such default shall cease to exist, and any
Event of Default arising therefrom shall be deemed to have been cured, for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or
other default or impair any right consequent thereon.

     Section 5.14. Undertaking for Costs. All parties to this Indenture agree,
                   ---------------------
and each Noteholder by its acceptance thereof shall be deemed to have agreed,
that any court may in its discretion require, in any suit for the enforcement of
any right or remedy under this Indenture, or in any suit against the Indenture
Trustee for any action taken, suffered or omitted by it as Indenture Trustee,
the filing by any party litigant in such suit of an undertaking to pay the costs
of such suit, and that such court may in its discretion assess reasonable costs,
including reasonable attorneys' fees, against any party litigant (other than the
Indenture Trustee) 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 5.14 shall not apply to any suit instituted by the Indenture
     ------------
Trustee, to any suit instituted by any Noteholder, or group of Noteholders (in
compliance with Section 5.8), holding Notes representing more than 10% of the
                -----------
principal balance of the Outstanding Notes of the affected Series, or to any
suit instituted by any Noteholder for the enforcement of the

                                       37

<PAGE>

payment of the principal or interest in respect of any Note on or after the
Distribution Date on which any of such amounts was due (or, in the case of
redemption, on or after the applicable 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, which may adversely affect the covenants or the performance of this
Indenture; and the Issuer (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and covenants that it
will not hinder, delay or impede the execution of any power herein granted to
the Indenture Trustee, but will suffer and permit the execution of every such
power as though no such law had been enacted.

     Section 5.16. Sale of Receivables.
                   -------------------

     (a) The method, manner, time, place and terms of any sale of Receivables
pursuant to Section 5.5(a)(iii) shall be commercially reasonable. The Indenture
            ------------------
Trustee may from time to time postpone any sale by public announcement made at
the time and place of such sale. The Indenture Trustee hereby expressly waives
its right to any amount fixed by law as compensation for any sale.

     (b) The Indenture Trustee is hereby irrevocably appointed the agent and
attorney-in-fact of the Issuer in connection with any sale of Receivables
pursuant to Section 5.5(a)(iii). No purchaser or transferee at any such sale
            ------------------
shall be bound to ascertain the Indenture Trustee's authority, inquire into the
satisfaction of any conditions precedent or see to the application of any
monies.

     (c) In its exercise of the foreclosure remedy pursuant to Section
                                                               -------
5.5(a)(iii), the Indenture Trustee shall solicit bids for the sale of Principal
----------
Receivables in any amount equal to the Collateral Amount of the affected Series
of Notes at the time of sale and the related Finance Charge Receivables (or
interests therein). The Seller or any of its affiliates shall be entitled to
participate in, and to receive from the Indenture Trustee a copy of each other
bid submitted in connection with, such bidding process; provided that (i) at
                                                        --------
least one participant other than the Seller and any of its affiliates must
submit a bona fide offer, and (ii) the Seller and any of its affiliates are
prohibited from bidding an amount which exceeds fair value for the transferred
assets. The Indenture Trustee shall sell such Receivables (or interests therein)
to the bidder with the highest cash purchase offer. The proceeds of any such
sale shall be applied as specified in the applicable Indenture Supplement.

                                       38

<PAGE>

     Section 5.17. Action on Notes. The Indenture Trustee's right to seek and
                   ---------------
recover judgment on the Notes or under this Indenture shall not be affected by
the seeking or obtaining of or application for any other relief under or with
respect to this Indenture. Neither the lien of this Indenture nor any rights or
remedies of the Indenture Trustee or the Noteholders shall be impaired by the
recovery of any judgment by the Indenture Trustee against the Issuer or by the
levy of any execution under such judgment upon any portion of the Collateral or
upon any of the assets of the Issuer. Any money or property collected by the
Indenture Trustee shall be applied as specified in the applicable Indenture
Supplement.

                                   ARTICLE VI

                              THE INDENTURE TRUSTEE

     Section 6.1. Duties of the Indenture Trustee.
                  -------------------------------

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

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

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

         (ii) in the absence of bad faith or negligence on its part, the
     Indenture Trustee may conclusively rely, as to the truth of the statements
     and the correctness of the opinions expressed therein, upon certificates or
     opinions furnished to the Indenture Trustee and conforming to the
     requirements of this Indenture; provided, however, the Indenture Trustee,
                                     --------  -------
     upon receipt of any resolutions, certificates, statements, opinions,
     reports, documents, orders or other instruments furnished to the Indenture
     Trustee which are specifically required to be furnished pursuant to any
     provision of this Indenture or any Indenture Supplement, shall examine them
     to determine whether they substantially conform to the requirements of this
     Indenture or any Indenture Supplement.

     (c) If a Pay Out Event has occurred and is continuing and a Trustee Officer
shall have actual knowledge or written notice of such Pay Out Event, the
Indenture Trustee shall exercise such of the rights and powers vested in it by
this Indenture, and use

                                       39

<PAGE>

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.

     (d) No provision of this Indenture shall be construed to relieve the
Indenture Trustee from liability for its own negligent action, its own negligent
failure to act, or its own willful misconduct, except that:

         (i)   this Section 6.1(d) shall not be construed to limit the effect
                    -------------
     of Section 6.1(a);
        -------------

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

         (iii) the Indenture Trustee shall not be liable with respect to any
     action taken, suffered or omitted to be taken by it in good faith in
     accordance with the Indenture and/or the direction of the Holders of Notes
     or for exercising any trust or power conferred upon the Indenture Trustee,
     under this Indenture. The Indenture Trustee shall not be liable for any
     action taken, suffered or omitted to be taken by it in good faith in
     accordance with the direction of the Servicer, the Seller or the Trust in
     compliance with the terms of this Indenture or any Indenture Supplement.

     (e) No provision of this Indenture shall require the Indenture Trustee to
expend or risk its own funds or otherwise incur any liability, financial or
otherwise, 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 for believing
that repayment of such funds or indemnity satisfactory to it against such risk
or liability is not reasonably assured to it.

     (f) Every provision of this Indenture that in any way relates to the
Indenture Trustee is subject to this Section 6.1.
                                     -----------

     (g) Except as expressly provided in this Indenture, the Indenture Trustee
shall have no power to vary the Collateral, including by (i) accepting any
substitute payment obligation for a Receivable initially transferred to the
Trust under the Transfer and Servicing Agreement, (ii) adding any other
investment, obligation or security to the Trust or (iii) withdrawing from the
Issuer any Receivable (except as otherwise provided in the Transfer and
Servicing Agreement).

     (h) The Indenture Trustee shall have no responsibility or liability for
investment losses on Permitted Investments (other than Permitted Investments on
which the institution acting as Indenture Trustee is an obligor). The Indenture
Trustee shall have no obligation to invest and reinvest any cash held in the
absence of timely and

                                       40

<PAGE>

specific written investment direction from the Issuer. In no event shall the
Indenture Trustee be liable for the selection of investments or for investment
losses incurred thereon. The Indenture Trustee shall have no liability in
respect of losses incurred as a result of the liquidation of any investment
prior to its stated maturity or the failure of the Issuer to provide timely
written investment direction.

     (i) The Indenture Trustee shall notify each Rating Agency (i) of any change
in any rating of the Notes by any other Rating Agency of which a Trustee Officer
of the Indenture Trustee has actual knowledge, and (ii) immediately of the
occurrence of any Event of Default or Pay Out Event of which a Trustee Officer
of the Indenture Trustee has actual knowledge of or has actual notice from the
Servicer of potential Pay Out Events or Events of Default.

     (j) For all purposes under this Indenture, the Indenture Trustee shall not
be deemed to have notice or knowledge of any Event of Default, Pay Out Event or
Servicer Default unless a Trustee Officer assigned to and working in the
Corporate Trust Office of the Indenture Trustee has actual knowledge thereof or
has received written notice thereof. For purposes of determining the Indenture
Trustee's responsibility and liability hereunder, any reference to an Event of
Default, Pay Out Event or Servicer Default shall be construed to refer only to
such event of which the Indenture Trustee is deemed to have notice as described
in this Section 6.1(j).
        -------------

     Section 6.2. Notice of Pay Out Event or Event of Default. Upon the
                  -------------------------------------------
occurrence of any Pay Out Event or Event of Default of which a Trustee Officer
has actual knowledge or has received written notice thereof, the Indenture
Trustee shall transmit by mail to all Noteholders as their names and addresses
appear on the Note Register and the Rating Agencies, notice of such Pay Out
Event or Event of Default hereunder known to the Indenture Trustee within thirty
(30) days after it occurs or within ten (10) Business Days after it receives
such notice or obtains actual notice, if later.

     Section 6.3. Rights of Indenture Trustee. Except as otherwise provided in
                  ---------------------------
Section 6.1:
-----------

     (a) the Indenture Trustee may conclusively rely and shall fully be
protected in acting or refraining from acting upon any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, note or other paper or document reasonably believed by it to be
genuine and to have been signed or presented by the proper party or parties;

     (b) whenever in the administration of this Indenture the Indenture Trustee
shall deem it desirable that a matter be proved or established prior to taking,
suffering or omitting any action hereunder, the Indenture Trustee (unless other
evidence be herein specifically prescribed) may, in the absence of bad faith on
its part, conclusively rely

                                       41

<PAGE>

upon an Officer's Certificate of the Issuer. The Issuer shall provide a copy of
such Officer's Certificate to the Noteholders at or prior to the time the
Indenture Trustee receives such Officer's Certificate;

     (c) as a condition to the taking, suffering or omitting of any action by it
hereunder, the Indenture Trustee may consult with counsel and the advice of such
counsel or any Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it hereunder
in-good faith and in reliance thereon;

     (d) the Indenture Trustee shall be under no obligation to exercise any of
the rights or powers vested in it by this Indenture or to honor the request or
direction of any of the Noteholders pursuant to this Indenture, unless such
Noteholders shall have offered to the Indenture Trustee security or indemnity
satisfactory to it against the costs, expenses and liabilities which might be
incurred by it in compliance with such request or direction;

     (e) the Indenture Trustee shall not be bound to make any investigation into
the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
note or other paper or document, but the Indenture Trustee at the written
direction of one or more of the Noteholders and at the expense of the
Noteholders, in its discretion, may make such further inquiry or investigation
into such facts or matters as it may see fit, and, if the Indenture Trustee
shall determine to make such further inquiry or investigation, it shall be
entitled to examine the books, records and premises of the Issuer and the
Servicer, personally or by agent or attorney;

     (f) the Indenture Trustee may execute any of the trusts or powers hereunder
or perform any duties hereunder either directly or by or through agents,
attorneys, custodians or nominees and the Indenture Trustee shall not be
responsible for any (i) misconduct or negligence on the part of any agent,
attorney, custodians or nominees appointed with due care by it hereunder or (ii)
the supervision of such agents, attorneys, custodians or nominees after such
appointment with due care;

     (g) the Indenture Trustee shall not be liable for any actions taken,
suffered or omitted by it in good faith and believed by it to be authorized or
within the discretion or rights conferred upon the Indenture Trustee by this
Indenture; and

     (h) in the event that the Indenture Trustee is also acting as Paying Agent
and Transfer Agent and Registrar and Successor Servicer, if it becomes Successor
Servicer pursuant to Section 7.2 of the Transfer and Servicing Agreement, the
rights and protections afforded to the Indenture Trustee pursuant to this
Article VI shall also be afforded to such Paying Agent and Transfer Agent and
----------
Registrar and Successor Servicer,

                                       42

<PAGE>

if it becomes Successor Servicer pursuant to Section 7.2 of the Transfer and
Servicing Agreement.

     Section 6.4. Not Responsible for Recitals or Issuance of Notes. The
                  -------------------------------------------------
recitals contained herein and in the Notes, except the certificate of
authentication of the Indenture Trustee, shall be taken as the statements of the
Issuer, and the Indenture Trustee assumes no responsibility for their
correctness. Neither the Indenture Trustee nor any of its agents makes any
representation as to the validity or sufficiency of the Agreement, the Notes, or
any related document. The Indenture Trustee shall not be accountable for the use
or application by the Issuer of the proceeds from the Notes.

     Section 6.5. Restrictions on Holding Notes. The Indenture Trustee shall not
                  -----------------------------
in its individual capacity, but may in a fiduciary capacity, become the owner or
pledgee of Notes and may otherwise deal with the Issuer with the same rights it
would have if it were not Indenture Trustee, Paying Agent, Transfer Agent and
Registrar or such other agent. Any Paying Agent, Transfer Agent and Registrar
that is not also the Indenture Trustee or any other agent of the Issuer, in its
individual or any other capacity, may become the owner or pledgee of Notes and
may otherwise deal with the Issuer with the same rights it would have if it were
not Indenture Trustee, Paying Agent, Transfer Agent and Registrar or such other
agent.

     Section 6.6. Money Held in Trust. Money held by the Indenture Trustee in
                  -------------------
trust hereunder need not be segregated from other funds held by the Indenture
Trustee in trust hereunder except to the extent required herein or required by
law. The Indenture Trustee shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed upon in writing by the
Indenture Trustee and the Issuer.

     Section 6.7. Compensation, Reimbursement and Indemnification. The Servicer
                  -----------------------------------------------
shall pay to the Indenture Trustee from time to time reasonable compensation for
all services rendered by the Indenture Trustee and the Authenticating Agent
under this Agreement (which compensation shall not be limited by any law on
compensation of a trustee of an express trust). The Servicer shall reimburse the
Indenture Trustee for all reasonable out-of-pocket expenses incurred or made by
it, including costs of collection, in addition to the compensation for its
services. Such expenses shall include the reasonable compensation and expenses,
disbursements and advances of the Indenture Trustee's agents, counsel,
accountants and experts. The Issuer shall direct the Servicer to indemnify,
defend and hold harmless, and the Servicer shall indemnify the Indenture Trustee
and its officers, directors, employees and agents against any and all loss,
liability, expense, damage or claim (including the fees of either in-house
counsel or outside counsel) incurred by it in connection with the administration
of this trust and the performance of its duties hereunder and under any other
Transaction Document, including any claim arising from any failure by Issuer or
Seller to pay when due any sales, excise, transfer or personal taxes relating to
the Receivables. The Indenture Trustee

                                       43

<PAGE>

shall notify the Issuer and the Servicer promptly of any claim for which it may
seek indemnity. Failure by the Indenture Trustee to so notify the Issuer and the
Servicer shall not relieve the Issuer or the Servicer of its obligations
hereunder unless such loss, liability or expense could have been avoided with
such prompt notification and then only to the extent of such loss, expense or
liability which could have been so avoided. The Servicer shall defend any claim
against the Indenture Trustee, the Indenture Trustee may have separate counsel
and, if it does, the Servicer shall pay the fees and expenses of such counsel.
Neither the Issuer nor the Servicer need reimburse any expense or indemnify
against any loss, liability or expense incurred by the Indenture Trustee through
the Indenture Trustee's own willful misconduct or negligence.

     The Servicer's payment obligations to the Indenture Trustee pursuant to
this Section 6.7 shall survive the discharge of this Indenture or earlier
     -----------
resignation or removal of the Indenture Trustee. When the Indenture Trustee
incurs expenses after the occurrence of a Default specified in Section 5.2(c) or
                                                               -------------
5.2(d) 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.

     To secure the Servicer's and Issuer's payment obligations in this Section
                                                                       -------
6.7, the Indenture Trustee shall have a lien prior to the Notes on all money or
---
property held or collected by the Indenture Trustee, in its capacity as
Indenture Trustee, except money or property held in trust to pay principal of,
or interest on, the Notes.

     Section 6.8. Replacement of Indenture Trustee. No resignation or removal of
                  --------------------------------
the Indenture Trustee and no appointment of a successor Indenture Trustee shall
become effective until the acceptance of appointment by the successor Indenture
Trustee pursuant to this Section 6.8. The Indenture Trustee may resign at any
                         -----------
time by giving thirty (30) days written notice to the Issuer and the Rating
Agencies. The Holders of Notes representing more than 66 2/3% of the Outstanding
Amount may remove the Indenture Trustee by so notifying the Indenture Trustee in
writing and may appoint a successor Indenture Trustee. The Administrator shall
remove the Indenture Trustee upon written notice if:

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

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

         (iii) a receiver of the Indenture Trustee or of its property shall be
     appointed, or any public officer takes charge of the Indenture Trustee or
     its property or its affairs for the purpose of rehabilitation, conservation
      or liquidation; or

                                       44

<PAGE>

          (iv) the Indenture Trustee otherwise becomes legally unable to act.

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

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

     If a successor Indenture Trustee does not take office within sixty (60)
days after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture Trustee, the Issuer or the Holders of Notes representing more than 50%
of the Outstanding Amount may petition any court of competent jurisdiction for
the appointment of a successor Indenture Trustee.

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

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

     The Administrator shall notify the Rating Agencies of any replacement of
the Indenture Trustee pursuant to this Section 6.8.
                                       -----------

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

                                       45

<PAGE>

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

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

     (a) Notwithstanding any other provisions of this Indenture, at any time,
for the purpose of meeting any legal requirement of any jurisdiction in which
any part of the Collateral may at the time be located, the Indenture Trustee
shall have the power and may execute and deliver all instruments to appoint one
or more Persons to act as a co-trustee or co-trustees, or separate trustee or
separate trustees, of all or any part of the Collateral, and to vest in such
Person or Persons, in such capacity and for the benefit of the Noteholders, such
title to the Collateral, or any part hereof, and, subject to the other
provisions of this Section 6.10, such powers, duties, obligations, rights and
                   ------------
trusts as the Indenture Trustee may consider necessary or desirable. No
co-trustee or separate trustee hereunder shall be required to meet the terms of
eligibility as a successor trustee under Section 6.11 and no notice to
                                         ------------
Noteholders of the appointment of any co-trustee or separate trustee shall be
required under Section 6.8.
               -----------

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

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

                                       46

<PAGE>

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

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

          (iv)  the Indenture Trustee shall not be liable for any act or failure
     to act on the part of any separate trustee or co-trustee.

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

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

     Section 6.11. Eligibility; Disqualification. The Indenture Trustee shall at
                   -----------------------------
all times satisfy the requirements of TIA (S)310(a). The Indenture Trustee shall
have a combined capital and surplus of at least $50,000,000 as set forth in its
most recent published annual report of condition and either its long-term
unsecured debt shall be rated at least A3 by Moody's and BBB- by Standard &
Poor's or its short-term debt shall be rated at least P-2 by Moody's or A-2 by
Standard & Poor's. The Indenture Trustee shall comply with TIA (S)310(b),
including the optional provision permitted by the second sentence of TIA
(S)310(b)(9); provided, however, that there shall be excluded from the operation
of TIA (S)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 (S)310(b)(1) are met.

                                       47

<PAGE>

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

     Section 6.13. Representations and Covenants of the Indenture Trustee. The
                   ------------------------------------------------------
Indenture Trustee represents, warrants and covenants that:

          (i)   the Indenture Trustee is a banking corporation duly organized
     and validly existing under the laws of the State of New York;

          (ii)  The Indenture Trustee has full power and authority to deliver
     and perform this Indenture and has taken all necessary action to authorize
     the execution, delivery and performance by it of this Indenture and other
     Transaction Documents to which it is a party; and

          (iii) Each of this Indenture and the other Transaction Documents to
     which it is a party has been duly executed and delivered by the Indenture
     Trustee and constitutes its legal, valid and binding obligation in
     accordance with its terms.

     Section 6.14. Custody of the Collateral. The Indenture Trustee shall hold
                   -------------------------
such of the Trust Estate as consists of instruments, deposit accounts,
negotiable documents, money, goods, letters of credit, and advices of credit in
the State of Illinois. The Indenture Trustee shall hold such of the Trust Estate
as constitutes investment property through a securities intermediary, which
securities intermediary shall agree with the Indenture Trustee that (a) such
investment property shall at all times be credited to a securities account of
the Indenture Trustee, (b) such securities intermediary shall treat the
Indenture Trustee as entitled to exercise the rights that comprise each
financial asset credited to such securities account, (c) all property credited
to such securities account shall be treated as a financial asset, (d) such
securities intermediary shall comply with entitlement orders originated by the
Indenture Trustee without the further consent of any other person or entity, (e)
such securities intermediary will not agree with any person or entity other than
the Indenture Trustee to comply with entitlement orders originated by such other
person or entity, (f) such securities accounts and the property credited thereto
shall not be subject to any lien, security interest, or right of set-off in
favor of such securities intermediary or anyone claiming through it (other than
the Indenture Trustee), and (g) such agreement shall be governed by the laws of
the State of Illinois. Terms used in the preceding sentence that are defined in
the Illinois UCC and not otherwise defined herein shall have the meaning set
forth in the Illinois UCC. Except as permitted by this Section 6.14, the
                                                       ------------
Indenture Trustee shall not hold any part of the Trust Estate through an agent
or a nominee.

                                       48

<PAGE>

                                   ARTICLE VII

                        NOTEHOLDERS' LIST AND REPORTS BY
                          INDENTURE TRUSTEE AND ISSUER

     Section 7.1. Issuer to Furnish Indenture Trustee Names and Addresses of
                  ----------------------------------------------------------
Noteholders. The Issuer will furnish or cause to be furnished to the Indenture
-----------
Trustee (a) upon each transfer of a Note, a list, in such form as the Indenture
Trustee may reasonably require, of the names, addresses and taxpayer
identification numbers of the Noteholders as they appear on the Note Register as
of such Record Date, and (b) at such other times, as the Indenture Trustee may
request in writing, within ten (10) 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 (10)
days prior to the time such list is furnished; provided, however, that for so
                                               --------  -------
long as the Indenture Trustee is the Transfer Agent and Registrar, the Indenture
Trustee shall furnish to the Issuer such list in the same manner prescribed in
clause (b) above.

     Section 7.2. Preservation of Information; Communications to Noteholders.
                  ----------------------------------------------------------

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

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

     (c) The Issuer, the Indenture Trustee and the Transfer Agent and Registrar
shall have the protection of TIA (S)312(c).

     Section 7.3. Reports by Issuer.
                  -----------------

     (a) The Issuer shall:

         (i) file with the Indenture Trustee, within fifteen (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;

                                       49

<PAGE>

              (ii)  file with the Indenture 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

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

         (c)  Delivery of such reports, information and documents to the
Indenture Trustee is for informational purposes only and the Indenture Trustee's
receipt of such shall not constitute constructive notice of any information
contained therein or determinable from information contained therein, including
the Issuer's compliance with any of the covenants hereunder.

         Section 7.4. Reports by Indenture Trustee. If required by TIA
                      ----------------------------
(S)313(a), within sixty (60) days after each March 31 beginning with March 31,
2002, the Indenture Trustee shall mail to each Noteholder as required by TIA
(S)313(c) a brief report dated as of such date that complies with TIA (S)313(a).
The Indenture Trustee also shall comply with TIA (S)313(b).

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

                                  ARTICLE VIII

                    ALLOCATION AND APPLICATION OF COLLECTIONS

         Section 8.1. Collection of Money. Except as otherwise expressly
                      -------------------
provided herein and in the related Indenture Supplement, the Indenture Trustee
may demand payment or delivery of, and shall receive and collect, directly and
without intervention or assistance of any fiscal agent or other intermediary,
all money and other property payable to or receivable by the Indenture Trustee
pursuant to this Indenture. The Indenture Trustee shall hold all such money and
property received by it in trust for the

                                       50

<PAGE>

Noteholders and shall apply it as provided in this Indenture. Except as
otherwise expressly provided in this Indenture, if any default occurs in the
making of any payment or performance under the Transfer and Servicing Agreement
or any other Transaction Document, the Indenture Trustee may, and upon the
written request of the Holders of Notes representing more than 50% of the
principal balance of the Outstanding Notes of the affected Series shall, subject
to Sections 6.1(e) and 6.3(d) 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 Pay Out Event or a Default or Event of Default under this Indenture
and to proceed thereafter as provided in Article V.
                                         ---------

     Section 8.2. Rights of Noteholders. The Collateral shall secure the rights
                  ---------------------
of the Holders of the Notes of each Series to receive the portion of Collections
allocable to the Noteholders of such Series pursuant to this Indenture and the
related Indenture Supplement, funds and other property credited to the
Collection Account and the Excess Funding Account (or any subaccount thereof)
allocable to the Noteholders of such Series pursuant to this Indenture and such
Indenture Supplement, funds and other property credited to any related Series
Account and funds available pursuant to any related Series Enhancement, it being
understood that, except as specifically set forth in the Indenture Supplement
with respect thereto, the Notes of any Series or Class shall not be secured by
any interest in any Series Account or Series Enhancement pledged for the benefit
of any other Series or Class.

     Section 8.3. Establishment of Collection Account and Excess Funding
                  ------------------------------------------------------
Account.
-------

     (a) The Servicer, for the benefit of the Noteholders, shall establish and
maintain with the Indenture Trustee or its nominee in the name of the Indenture
Trustee, on behalf of the Issuer, a Qualified Account (including any subaccount
thereof) bearing a designation clearly indicating that the funds and other
property credited thereto are held for the benefit of the Noteholders (the
"Collection Account"). The Indenture Trustee shall possess all right, title and
 ------------------
interest in all monies, instruments, investment property, documents,
certificates of deposit and other property credited from time to time to the
Collection Account and in all proceeds, earnings, income, revenue, dividends and
distributions thereof for the benefit of the Noteholders.

     The Collection Account shall be under the sole dominion and control of the
Indenture Trustee for the benefit of the Noteholders. Except as expressly
provided in this Indenture and the Transfer and Servicing Agreement, the
Servicer agrees that it shall have no right of setoff or banker's lien against,
and no right to otherwise deduct from, any funds held in the Collection Account
for any amount owed to it by the Indenture Trustee, the Issuer, any Noteholder
or any Series Enhancer. If, at any time, the Collection Account ceases to be a
Qualified Account and the same is actually known to a Trustee Officer of

                                       51

<PAGE>

the Indenture Trustee, the Indenture Trustee (or the Servicer on its behalf)
shall within 15 days (or such longer period, not to exceed thirty (30) calendar
days, as to which each Rating Agency may consent) establish a new Collection
Account meeting the conditions specified above, transfer any monies, documents,
instruments, investment property, certificates of deposit and other property to
such new Collection Account and from the date such new Collection Account is
established, it shall be the "Collection Account." Pursuant to the authority
                              ------------------
granted to the Servicer in Section 3.1(b) of the Transfer and Servicing
                           --------------
Agreement, the Servicer shall have the power, revocable by the Indenture
Trustee, to make withdrawals and payments from the Collection Account and to
instruct the Indenture Trustee in writing to make withdrawals and payments from
the Collection Account for the purposes of carrying out the Servicer's or the
Indenture Trustee's duties hereunder and under the Transfer and Servicing
Agreement, as applicable. The Servicer shall reduce deposits into the Collection
Account payable by the Seller on any Deposit Date to the extent the Seller is
entitled to receive funds from the Collection Account on such Deposit Date.

     Funds on deposit in the Collection Account (other than investment earnings
and amounts deposited pursuant to Section 2.6, 6.1, or 7.1 of the Transfer and
                                  -----------  ---     ---
Servicing Agreement or Section 11.2 of this Indenture) shall at the written
                       ------------
direction of the Servicer be invested by the Indenture Trustee or its nominee in
Permitted Investments selected by the Servicer. All such Permitted Investments
shall be held by the Indenture Trustee for the benefit of the Noteholders
pursuant to Sections 6.14 and 6.1(h). Investments of funds representing
            -------------     ------
Collections collected during any Monthly Period shall be invested in Permitted
Investments that will mature so that such funds will be available no later than
the close of business on each monthly Transfer Date following such Monthly
Period in amounts sufficient to the extent of such funds to make the required
distributions on the following Distribution Date. No such Permitted Investment
shall be disposed of prior to its maturity; provided, however, that the
                                            --------  -------
Indenture Trustee may sell, liquidate or dispose of any such Permitted
Investment before its maturity, at the written direction of the Servicer, if
such sale, liquidation or disposal would not result in a loss of all or part of
the principal portion of such Permitted Investment or if, prior to the maturity
of such Permitted Investment, a default occurs in the payment of principal,
interest or any other amount with respect to such Permitted Investment. Unless
directed by the Servicer in writing, funds deposited in the Collection Account
on a Transfer Date with respect to the immediately succeeding Distribution Date
are not required to be invested overnight. On each Distribution Date, all
interest and other investment earnings (net of losses and investment expenses)
on funds on deposit in the Collection Account shall be treated as Collections of
Finance Charge Receivables with respect to the last day of the related Monthly
Period, except as otherwise specified in any Indenture Supplement. The Indenture
Trustee shall bear no responsibility or liability for any losses resulting from
investment or reinvestment of any funds in accordance with this Section 8.3 nor
                                                                -----------
for the selection of Permitted Investments in accordance with the provisions of
this Indenture and any Indenture Supplement.

                                       52

<PAGE>

     (b)  The Servicer, for the benefit of the Noteholders, shall establish and
maintain with the Indenture Trustee or its nominee in the name of the Indenture
Trustee, on behalf of the Issuer, a Qualified Account (including any subaccounts
thereof) bearing a designation clearly indicating that the funds and other
property credited thereto are held for the benefit of the Noteholders (the
"Excess Funding Account"). The Indenture Trustee shall possess all right, title
 ----------------------
and interest in all monies, instruments, investment property, documents,
certificates of deposit and other property credited from time to time to the
Excess Funding Account and in all proceeds, dividends distributions, earnings,
income and revenue thereof for the benefit of the Noteholders. The Excess
Funding Account shall be under the sole dominion and control of the Indenture
Trustee for the benefit of the Noteholders. Except as expressly provided in this
Indenture and the Transfer and Servicing Agreement, the Servicer agrees that it
shall have no right of setoff or banker's lien against, and no right to
otherwise deduct from, any funds and other property held in the Excess Funding
Account for any amount owed to it by the Indenture Trustee, the Issuer, any
Noteholder or any Series Enhancer. If, at any time, the Excess Funding Account
ceases to be a Qualified Account and the same is actually known to a Trustee
Officer of the Indenture Trustee, the Indenture Trustee (or the Servicer on its
behalf) shall within 15 days (or such longer period, not to exceed thirty (30)
calendar days, as to which each Rating Agency may consent) establish a new
Excess Funding Account meeting the conditions specified above, transfer any
monies, documents, instruments, investment property, certificates of deposit and
other property to such new Excess Funding Account and from the date such new
Excess Funding Account is established, it shall be the "Excess Funding Account."
                                                        ----------------------

     Funds on deposit in the Excess Funding Account shall at the written
direction of the Servicer be invested by the Indenture Trustee in Permitted
Investments selected by the Servicer. All such Permitted Investments shall be
held by the Indenture Trustee or its nominee (including any securities
intermediary) for the benefit of the Noteholders pursuant to Sections 6.14 and
                                                             -------------
6.1(h). Funds on deposit in the Excess Funding Account on any Distribution Date
------
will be invested in Permitted Investments that will mature so that such funds
will be available no later than the close of business on the next succeeding
Transfer Date. No such Permitted Investment shall be disposed of prior to its
maturity; provided, however, that the Indenture Trustee may sell, liquidate or
          --------  -------
dispose of a Permitted Investment before its maturity, at the written direction
of the Servicer, if such sale, liquidation or disposal would not result in a
loss of all or part of the principal portion of such Permitted Investment or if,
prior to the maturity of such Permitted Investment, a default occurs in the
payment of principal, interest or any other amount with respect to such
Permitted Investment. Unless directed by the Servicer in writing, funds
deposited in the Excess Funding Account on a Transfer Date with respect to the
immediately succeeding Distribution Date are not required to be invested
overnight. On each Distribution Date, all interest and other investment earnings
(net of losses and investment expenses) on funds on deposit in the Excess
Funding Account shall be treated as

                                       53

<PAGE>

Collections of Finance Charge Receivables with respect to the last day of the
related Monthly Period except as otherwise specified in the related Indenture
Supplement.

     Section 8.4. Collections and Allocations. From and after the FCMT
                  ---------------------------
Termination Date:

     (a)  Collections. The Servicer shall apply or shall instruct the Indenture
          -----------
Trustee in writing to apply all funds on deposit in the Collection Account as
described in this Article VIII and in each Indenture Supplement. Except as
                  ------------
otherwise provided below, the Servicer shall deposit Collections into the
Collection Account as promptly as possible after the Date of Processing of such
Collections, but in no event later than the second Business Day following the
Date of Processing. Subject to the express terms of any Indenture Supplement,
but notwithstanding anything else in this Indenture or the Transfer and
Servicing Agreement to the contrary, for so long as FCNB shall remain the
Servicer and no Servicer Default has occurred and is continuing and either (i)
the Servicer provides to the Indenture Trustee a letter of credit or other
arrangement covering risk of collection of the Servicer and the Servicer shall
have satisfied the Rating Agency Condition with respect to such arrangement or
(ii) the Servicer (unless the Rating Agency Condition shall have been satisfied
with respect to making monthly deposits) shall have and maintain a certificate
of deposit or short-term deposit rating of P-1 by Moody's and of at least A-1 by
Standard & Poor's and deposit insurance as required by law and by the FDIC, the
Servicer need not make the daily deposits of Collections into the Collection
Account as provided in the preceding sentence, but may make a single deposit in
the Collection Account in immediately available funds on the Transfer Date
following the Monthly Period with respect to which such deposit relates.
Notwithstanding anything else in this Indenture or the Transfer and Servicing
Agreement to the contrary, with respect to any Monthly Period, whether the
Servicer is required to make deposits of Collections pursuant to the first or
the second preceding sentence, (i) the Servicer will only be required to deposit
Collections into the Collection Account up to the aggregate amount of
Collections required to be deposited into any Series Account or, without
duplication, distributed on or prior to the related Distribution Date to
Noteholders or to any Series Enhancer pursuant to the terms of any Indenture
Supplement or Enhancement Agreement, but the Servicer shall account for
Collections as if the full deposit had been made and (ii) if at any time prior
to such Distribution Date the amount of Collections deposited in the Collection
Account exceeds the amount required to be deposited pursuant to clause (i)
                                                                ----------
above, the Servicer will be permitted to withdraw the excess from the Collection
Account and pay such amount to the Holder of the Seller Interest. Subject to the
immediately preceding sentence, the Servicer may retain its Servicing Fee with
respect to a Series and shall not be required to deposit it in the Collection
Account.

     (b)  Series and Seller Allocations. Finance Charge Collections, Collections
          -----------------------------
of Principal Receivables and Defaulted Receivables will be allocated to each
Series of Notes and to the Holders of the Seller Interest in accordance with
this Article VIII and
     ------------

                                       54

<PAGE>

each Indenture Supplement, and amounts so allocated to any Series will not,
except as specified in the related Indenture Supplement, be available to the
Noteholders of any other Series. All Finance Charge Collections, Collections of
Principal Receivables and Defaulted Receivables not so allocated to any Series
of Notes shall be allocated and (in the case of Collections) paid to the Holder
of the Seller Interest, except as otherwise provided in Section 8.4(g).
                                                        --------------

     (c)  Allocation of Collections Between Finance Charge Receivables and
          ----------------------------------------------------------------
Principal Receivables. On each Business Day, the Servicer shall allocate
---------------------
Collections processed on the Accounts as Finance Charge Collections as set forth
in Section 1.3 of the Transfer and Servicing Agreement, or, in the case of
   -----------
Discount Option Receivables, Finance Charge Collections as set forth in Section
                                                                        -------
2.8(b) of the Transfer and Servicing Agreement. In addition all Collections
------
which constitute Net Recoveries, investment earnings (net of investment expenses
and losses) on the Collection Account and the Excess Funding Account shall be
treated as Finance Charge Collections and allocated accordingly. The balance of
the Collections processed on any Business Day shall be allocated to Principal
Receivables.

     (d)  Allocation of Collections of Recoveries and Defaulted Amounts. On each
          -------------------------------------------------------------
Determination Date, the Servicer shall calculate the Investor Default Amount and
the amount of Net Recoveries, if any, for the preceding Monthly Period with
respect to each Series.

     (e)  Adjustments for Miscellaneous Credits. The Servicer shall be obligated
          -------------------------------------
to reduce or adjust, as the case may be, on a net basis, the aggregate amount of
Principal Receivables used to calculate the Seller Amount as provided in this
Section 8.4(e) (a "Credit Adjustment") with respect to any Principal Receivable
--------------     -----------------
(i) which was created in respect of merchandise refused or returned by the
Obligor thereunder, (ii) which is reduced by the Servicer by any rebate, refund,
chargeback or adjustment, (iii) as to which the Obligor thereunder has asserted
a counterclaim or defense and either (x) the Servicer has agreed such
counterclaim or defense is valid or (y) a final nonappealable judgment or decree
has been entered in favor of such Obligor in respect of such counterclaim or
defense by a court or arbitral body having jurisdiction thereof, or (iv) which
the Servicer has determined was created through a fraudulent or counterfeit
charge, but only if and to the extent such fraudulent or counterfeit charges are
not included as charge-offs under the Cardholder Guidelines.

     In the event that the exclusion of the amount of a Credit Adjustment from
the calculation of the Seller Amount would cause the Seller Amount to be less
than the Minimum Seller Amount, Seller shall make a deposit, no later than the
Business Day following the Date of Processing of such Credit Adjustment, in the
Excess Funding Account in immediately available funds, in an amount equal to the
Shortfall Amount, after giving effect to such exclusion to the extent Seller has
received such funds from

                                       55

<PAGE>

FCNB under the Receivables Purchase Agreement and, if Seller has not received
such funds, to the extent Seller has funds available for such purpose after
amounts payable to Securityholders (as defined in the Receivables Purchase
Agreement) have been paid in full. Such deposit shall be applied in accordance
with this Article VIII and the Indenture Supplements and treated as a Principal
          ------------
Collection for all purposes hereof and thereof. Each party hereto agrees that
the failure by the Seller to make the deposit beyond the extent it has such
funds available for such purpose in accordance with this Section 8.4(e) shall
                                                         --------------
not give rise to a claim against the Seller for such failure.

     (f)  Net Payments. So long as FCNB is the Servicer and FCNB, as Servicer,
          ------------
is making daily deposits to the Collection Account in accordance with Section
                                                                      -------
8.4(a), FCNB, acting as Servicer and as agent for the Holder of the Seller
------
Interest, may make a net payment to the Collection Account on each Deposit Date
in the amount of all Collections received by the Servicer since the previous
Deposit Date, minus all amounts payable to the Holder of the Seller Interest on
or before such day in accordance with this Article VIII and the Indenture
                                           ------------
Supplements.

     (g)  Unallocated Collections; Excess Funding Account. On each Business Day,
          -----------------------------------------------
Principal Collections allocable to the Seller Interest (including Shared
Principal Collections and Excess Finance Charge Collections payable to the
Holders of the Seller Interest) in an aggregate amount equal to the Shortfall
Amount shall be deposited in the Excess Funding Account. Thereafter, amounts in
the Excess Funding Account shall be treated as Shared Principal Collections to
the extent that, after giving effect to the application of such amount as Shared
Principal Collections to the extent provided in any Indenture Supplement, the
Seller Amount would equal or exceed the Minimum Seller Amount.

     (h)  Allocation of Deposit Obligations. If the Seller or the Servicer shall
          ---------------------------------
fail to make any Deposit Obligation, the amount thereof shall first be allocated
to reduce the Seller Amount until the Seller Amount equals the Minimum Seller
Amount. Any remaining shortfall shall be allocated to each Series ratably based
upon a fraction the numerator of which is the Allocation Percentage used by such
Series to allocate Default Amounts and the denominator of which is the sum of
all such numerators of all Series outstanding (such allocated amount, the
"Series Share" of such shortfall). The Series Share of each series that
 ------------
specifies a Minimum Seller Percentage greater than zero shall be allocated to
reduce the Seller Amount and any Collections otherwise allocable to the Seller
Amount and the balance on deposit in the Excess Funding Account shall be
available on a ratable basis to such Series to cover any shortfalls arising from
such failure; provided to the extent the Seller Amount falls below zero, any
portion of the Series Share of any such Series that is not covered as described
above shall be allocated to such Series. The Series Share of each Series that
specifies a Minimum Seller Percentage of zero shall be allocated to such series.

                                       56

<PAGE>

     Section 8.5. Shared Principal Collections. From and after the FCMT
                  ----------------------------
Termination Date, on each Distribution Date, (a) the Servicer shall allocate
Shared Principal Collections (as described below) to each Principal Sharing
Series, pro rata, in proportion to the Principal Shortfalls (as described
below), if any, with respect to each such Series and (b) the Servicer shall
withdraw from the Collection Account an amount equal to the excess, if any, of
(i) the aggregate amount for all outstanding Series of Collections of Principal
Receivables which the related Indenture Supplements specify are to be treated as
"Shared Principal Collections" for such Distribution Date over (ii) the
 ----------------------------
aggregate amount for all outstanding Series which the related Indenture
Supplements specify are "Principal Shortfalls" for such Series and for such
                         --------------------
Distribution Date and shall (A) deposit such funds into the Excess Funding
Account in an aggregate amount equal to the Shortfall Amount in accordance with
Section 8.4(g) and (B) pay any remaining amount to the Holders of the Seller
--------------
Interest. The Seller may, at its option, instruct the Indenture Trustee in
writing to deposit Shared Principal Collections which are otherwise payable to
the holders of the Seller Interest pursuant to the provisions set forth above
into the Excess Funding Account.

     Section 8.6. Excess Finance Charge Collections. From and after the FCMT
                  ---------------------------------
Termination Date, on each Distribution Date, (a) the Servicer shall allocate
Excess Finance Charge Collections (as described below) to each Excess Allocation
Series, pro rata, in proportion to the Finance Charge Shortfalls (as described
below), if any, with respect to each such Series and (b) the Servicer shall
withdraw from the Collection Account an amount equal to the excess, if any, of
(x) the aggregate amount for all outstanding Series of Collections of Finance
Charge Receivables which the related Supplements specify are to be treated as
"Excess Finance Charge Collections" for such Distribution Date over (y) the
 ---------------------------------
aggregate amount for all outstanding Series which the related Supplements
specify are "Finance Charge Shortfalls" for such Series and such Distribution
             -------------------------
Date and shall (A) deposit such funds into the Excess Funding Account in an
aggregate amount equal to the Shortfall Amount in accordance with Section 8.4(g)
                                                                          ------
and (b) pay any remaining amount to the holders of the Seller Interest;
    ---
provided, however, that the sharing of Excess Finance Charge Collections among
--------  -------
Series will continue only until such time, if any, at which the Seller shall
deliver to the Indenture Trustee an Officer's Certificate to the effect that, in
the reasonable belief of the Seller, the continued sharing of Excess Finance
Charge Collections among Series would have adverse regulatory implications with
respect to the Seller. Notwithstanding the foregoing, a Group of Series may
specify in their related Indenture Supplements that Excess Finance Charge
Collections from such Series shall be allocated as provided above but only among
the Series in such Group.

                                       57

<PAGE>

     Section 8.7. Allocation of Collateral to Series or Groups. To the extent so
                  --------------------------------------------
provided in the Indenture Supplement for any Series or in an Indenture
Supplement otherwise executed pursuant to Section 10.1, Receivables conveyed to
                                          ------------
the Issuer pursuant to Section 2.1 of the Transfer and Servicing Agreement and
                       -----------
Receivables conveyed to the Issuer pursuant to Section 2.9 of the Transfer and
                                               -----------
Servicing Agreement and all Collections received with respect thereto may be
allocated or applied in whole or in part to one or more Series or Groups as may
be provided in such Indenture Supplement; provided, however, that any such
                                          --------  -------
allocation or application shall be effective only upon satisfaction of the
following conditions:

          (1)  on or before the fifth Business Day immediately preceding such
     allocation, the Servicer shall have given the Indenture Trustee and each
     Rating Agency written notice of such allocation;

          (2)  the Rating Agency Condition shall have been satisfied with
     respect to such allocation; and

          (3)  the Servicer shall have delivered to the Indenture Trustee an
     Officer's Certificate, dated the date of such allocation, to the effect
     that the Servicer reasonably believes that such allocation will not have an
     Adverse Effect.

     Any such Indenture Supplement may provide that (i) such allocation to one
or more particular Series or Groups may terminate upon the occurrence of certain
events specified therein and (ii) that upon the occurrence of any such event,
such assets and any Collections with respect thereto, shall be reallocated to
other Series or Groups or to all Series, all as shall be provided in such
Indenture Supplement.

     Section 8.8. Release of Collateral; Eligible Loan Documents.
                  ----------------------------------------------

     (a)  Upon the written direction of the Issuer, the Indenture 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 Indenture
Trustee's interest in the same, in a manner and under circumstances which are
not inconsistent with the provisions of this Indenture. No party relying upon an
instrument executed by the Indenture Trustee as provided in this Article VIII
                                                                 ------------
shall be bound to ascertain the Indenture Trustee's authority, inquire into the
satisfaction of any conditions precedent or see to the application of any
monies.

     (b)  In order to facilitate the servicing of the Receivables by the
Servicer, the Indenture Trustee upon Issuer Order shall authorize the Servicer
to execute in the name and on behalf of the Indenture Trustee instruments of
satisfaction or cancellation, or of partial or full release or discharge, and
other comparable instruments with respect to the

                                       58

<PAGE>

Receivables (and the Indenture Trustee shall execute any such documents on
written request of the Servicer), subject to the obligations of the Servicer
under the Transfer and Servicing Agreement.

       (c)   The Indenture Trustee shall, at such time as there are no Notes
outstanding, release and transfer, without recourse, all of the Collateral that
secured the Notes (other than any cash held for the payment of the Notes
pursuant to Section 4.2). The Indenture Trustee shall release property from the
            -----------
lien of this Indenture pursuant to this Section 8.9(c) only upon receipt of an
                                        --------------
Issuer Order accompanied by an Officer's Certificate, an Opinion of Counsel and
(if required by the TIA) Independent Certificates in accordance with TIA
(S)314(c) and 314(d)(1) meeting the applicable requirements of Section 12.1.
                                                               ------------

       (d)   Notwithstanding anything to the contrary in this Indenture, the
Transfer and Servicing Agreement and the Trust Agreement, immediately prior to
the release of any portion of the Collateral or any funds on deposit in the
Series Accounts pursuant to this Indenture, the Indenture Trustee shall at the
written request of the Issuer remit to the Seller for its own account any funds
that, upon such release, would otherwise be remitted to the Issuer.

       Section 8.9.  Opinion of Counsel. The Indenture Trustee shall receive at
                     ------------------
least seven (7) days notice when requested by the Issuer to take any action
pursuant to Section 8.8(a), accompanied by copies of any instruments involved,
            --------------
and the Indenture Trustee shall also require, as a condition to such action, an
Opinion of Counsel, in form and substance reasonably satisfactory to the
Indenture Trustee, stating the legal effect of any such action, outlining the
steps required to complete the same, and concluding that all conditions
precedent to the taking of such action have been complied with and such action
will not materially and adversely impair the security for the Notes or the
rights of the Noteholders in contravention of the provisions of this Indenture;
provided, however, that such Opinion of Counsel shall not be required to express
--------  -------
an opinion as to the fair value of the Collateral. The Indenture Trustee and
counsel rendering any such opinion may conclusively rely, without independent
investigation, on the accuracy and validity of any certificate or other
instrument delivered to the Indenture Trustee in connection with any such
action.

                                   ARTICLE IX

                    DISTRIBUTIONS AND REPORTS TO NOTEHOLDERS

       Distributions shall be made to, and reports shall be provided to,
Noteholders as set forth in the applicable Indenture Supplement. The identity of
the Noteholders with respect to distributions and reports shall be determined
according to the immediately preceding Record Date.

                                       59

<PAGE>

                                    ARTICLE X

                             SUPPLEMENTAL INDENTURES

       Section 10.1.  Supplemental Indentures Without Consent of Noteholders.
                      ------------------------------------------------------

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

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

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

             (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 Indenture Trustee;

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

             (vi)    to evidence and provide for the acceptance of the
       appointment hereunder by a successor indenture 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 indenture trustee, pursuant to the
       requirements of Article VI;
                       ----------

                                       60

<PAGE>

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

             (viii)   to provide for the issuance of one or more new Series of
       Notes, in accordance with the provisions of Section 2.12; or
                                                   ------------

             (ix)     to provide for the termination of any interest rate swap
       agreement or other form of credit enhancement or maturity guarantee
       agreement in accordance with the provisions of the related Indenture
       Supplement.

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

       (b)   The Issuer and the Indenture Trustee, when authorized by an Issuer
Order, may, also without the consent of any Noteholders of any Series then
Outstanding but upon satisfaction of the Rating Agency Condition with respect to
the Notes of all Series, 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 the Seller shall have delivered to the Owner Trustee and the
-------
Indenture Trustee an Officer's Certificate, dated the date of any such action,
stating that all requirements for such amendments contained in the Agreement
have been met and the Seller reasonably believes that such action will not have
an Adverse Effect. Additionally, notwithstanding the preceding sentence, the
Issuer and the Indenture Trustee, when authorized by an Issuer Order, may,
without the consent of any Noteholders of any Series then Outstanding or the
Series Enhancers for any Series, enter into an indenture or indentures
supplemental hereto to add, modify or eliminate such provisions as may be
necessary or advisable in order to enable all or a portion of the Issuer (i) to
qualify as, and to permit an election to be made to cause the Issuer to be
treated as, a "financial asset securitization investment trust" as described in
the provisions of Section 860L of the Code, and (ii) to avoid the imposition of
state or local income or franchise taxes imposed on the Issuer's property or its
income; provided, however, that (i) the Seller delivers to the Indenture Trustee
        --------  -------
and the Owner Trustee an Officer's Certificate to the effect that the proposed
amendments meet the requirements set forth in this Section 10.1(b), (ii) the
                                                   ---------------
Rating Agency Condition will have been satisfied and (iii) such amendment does
not affect the rights, duties, protections, indemnities, immunities or
obligations of the Indenture Trustee or the Owner Trustee hereunder. The
amendments which the Seller may make without the consent of Noteholders pursuant
to the preceding sentence may include the addition or sale of Receivables.

                                       61

<PAGE>

       Section 10.2. Supplemental Indentures with Consent of Noteholders. The
                     ---------------------------------------------------
Issuer and the Indenture Trustee, when authorized by an Issuer Order, also may,
upon satisfaction of the Rating Agency Condition and with the consent of the
Holders of Notes representing more than 66-2/3% of the principal balance of the
Outstanding Notes of each adversely affected Series, by Act of such Holders
delivered to the Issuer and the Indenture Trustee, enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to,
changing in any manner or eliminating any of the provisions of this Indenture or
of modifying in any manner the rights of such Noteholders under this Indenture;
provided, however that no such supplemental indenture shall, without the consent
--------  -------
of the Holder of each outstanding Note affected thereby:

       (a)   change the due date of any installment of principal of or interest
on any Note, or reduce the principal amount thereof, the interest rate specified
thereon or the redemption price with respect thereto or change any place of
payment where, or the coin or currency in which, any Note or any interest
thereon is payable;

       (b)   impair the right to institute suit for the enforcement of the
provisions of this Indenture requiring the application of funds available
therefor, as provided in Article V, 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);

       (c)   reduce the percentage of the Outstanding Notes of any Series 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 as provided for in this Indenture;

       (d)   reduce the percentage of the Outstanding Notes of any Series, the
consent of the Holders of which is required to direct the Indenture Trustee to
sell or liquidate the Collateral if the proceeds of such sale would be
insufficient to pay the principal amount and accrued but unpaid interest on the
outstanding Notes of such Series;

       (e)   decrease the percentage of the Outstanding Notes required to amend
the sections of this Indenture which specify the applicable percentage of the
Outstanding Notes of any Series necessary to amend the Indenture or any
Transaction Documents which require such consent;

       (f)   modify or alter the provisions of this Indenture prohibiting the
voting of Notes held by the Issuer, any other Obligor on the Notes, a Seller or
any affiliate thereof; or

                                       62

<PAGE>

       (g)   permit the creation of any Lien ranking prior to or on a parity
with the lien of this Indenture with respect to any part of the Collateral for
any Notes or, except as otherwise permitted or contemplated herein, terminate
the Lien of this Indenture on any such Collateral at any time subject hereto or
deprive the Holder of any Note of the security provided by the Lien of this
Indenture.

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

       Satisfaction of the Rating Agency Condition shall not be required with
respect to the execution of any supplemental indenture pursuant to this Section
                                                                        -------
10.2 for which the consent of all of the affected Noteholders is required.
----

       It shall not be necessary for any Act of Noteholders under this Section
                                                                       -------
10.2 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 Issuer and the Indenture Trustee of
any supplemental indenture pursuant to this Section 10.2, the Indenture Trustee
                                            ------------
shall mail to the Holders of the Notes to which such amendment or supplemental
indenture relates written notice setting forth in general terms the substance of
such supplemental indenture. Any failure of the Indenture 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 10.3. Execution of Supplemental Indentures. In executing, or
                     ------------------------------------
permitting the additional trusts created by, any supplemental indenture
permitted by this Article X or the modification thereby of the trusts created by
                  ---------
this Indenture, the Indenture Trustee shall be entitled to receive, and shall be
fully protected in relying upon, an Opinion of Counsel stating that the
execution of such supplemental indenture is authorized or permitted by this
Indenture and stating that all requisite consents have been obtained or that no
consents are required and stating that such supplemental indenture or
modification constitutes the legal, valid and binding obligation of the Issuer
in accordance with its terms. The Indenture Trustee may, but shall not be
obligated to, enter into any such supplemental indenture that affects the
Indenture Trustee's own rights, duties, liabilities or immunities under this
Indenture or otherwise.

                                       63

<PAGE>

       Section 10.4. Effect of Supplemental Indenture. Upon the execution of any
                     --------------------------------
supplemental indenture under this Article X, this Indenture shall be modified in
                                  ---------
accordance therewith, and such supplemental indenture shall form a part of this
Indenture for all purposes, and every Holder of Notes theretofore or thereafter
authenticated and delivered hereunder shall be bound thereby. This Section 10.4
                                                                   ------------
does not apply to Indenture Supplements.

       Section 10.5. Conformity With Trust Indenture Act. Every amendment of
                     -----------------------------------
this Indenture and every supplemental indenture executed pursuant to this
Article X shall conform to the requirements of the TIA as then in effect so long
---------
as this Indenture shall then be qualified under the TIA.

       Section 10.6. Reference in Notes to Supplemental Indentures. Notes
                     ---------------------------------------------
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article X may, and if required by the Indenture Trustee shall,
                 ---------
bear a notation in form approved by the Indenture Trustee as to any matter
provided for in such supplemental indenture. If the Issuer shall so determine,
new Notes so modified as to conform, in the opinion of the Indenture Trustee and
the Issuer, to any such supplemental indenture may be prepared and executed by
the Issuer and authenticated and delivered by the Indenture Trustee in exchange
for the outstanding Notes.

                                   ARTICLE XI

                                   TERMINATION

       Section 11.1. Termination of Issuer. The Issuer and the respective
                     ---------------------
obligations and responsibilities of the Indenture Trustee created hereby (other
than the obligation of the Indenture Trustee to make payments to Noteholders as
hereinafter set forth) shall terminate, except with respect to the duties
described in Section 11.2(b), as provided in the Trust Agreement.
             ---------------

       Section 11.2. Final Distribution.
                     ------------------

       (a)   The Servicer shall give the Indenture Trustee and the Rating
Agencies at least thirty (30) days prior written notice of the Distribution Date
on which the Noteholders of any Series or Class may surrender their Notes for
payment of the final distribution on and cancellation of such Notes (or, in the
event of a final distribution resulting from the application of Section 2.6 of
                                                                -----------
the Transfer and Servicing Agreement, notice of such Distribution Date promptly
after the Servicer has determined that a final distribution will occur, if such
determination is made less than thirty (30) days prior to such Distribution
Date). Such notice shall be accompanied by an Officer's Certificate setting
forth the information specified in Section 3.5 of the Transfer and Servicing
                                   -----------
Agreement covering the period during the then-current calendar year

                                       64

<PAGE>

through the date of such notice. Not later than the fifth day of the month in
which the final distribution in respect of such Series or Class is payable to
Noteholders, the Indenture Trustee shall provide notice to Noteholders of such
Series or Class specifying (i) the date upon which final payment of such Series
or Class will be made upon presentation and surrender of Notes of such Series or
Class at the office or offices therein designated, (ii) the amount of any such
final payment and (iii) that the Record Date otherwise applicable to such
payment date is not applicable, payments being made only upon presentation and
surrender of such Notes at the office or offices therein specified (which in the
case of Bearer Notes shall be outside the United States). The Indenture Trustee
shall give such notice to the Transfer Agent and Registrar and the Paying Agent
at the time such notice is given to Noteholders.

       (b)   Notwithstanding a final distribution to the Noteholders of any
Series or Class (or the termination of the Issuer), except as otherwise provided
in this paragraph, all funds then on deposit in the Collection Account and any
Series Account allocated to such Noteholders shall continue to be held in trust
for the benefit of such Noteholders and the Paying Agent or the Indenture
Trustee shall pay such funds to such Noteholders upon surrender of their Notes,
if certificated (and any excess shall be paid in accordance with the terms of
any Enhancement Agreement). In the event that all such Noteholders shall not
surrender their Notes for cancellation within six (6) months after the date
specified in the notice from the Indenture Trustee described in paragraph (a),
the Indenture Trustee shall give a second notice to the remaining such
Noteholders to surrender their Notes for cancellation and receive the final
distribution with respect thereto (which surrender and payment, in the case of
Bearer Notes, shall be outside the United States). If within one year after the
second notice all such Notes shall not have been surrendered for cancellation,
the Indenture Trustee may take appropriate steps, or may appoint an agent to
take appropriate steps, to contact the remaining such Noteholders concerning
surrender of their Notes, and the cost thereof shall be paid out of the funds in
the Collection Account or any Series Account held for the benefit of such
Noteholders. The Indenture Trustee and, upon the written request of the
Servicer, the Paying Agent shall pay to the Issuer any monies held by them for
the payment of principal or interest that remains unclaimed for two (2) years.
After payment to the Issuer, Noteholders entitled to the money must look to the
Issuer for payment as general creditors unless an applicable abandoned property
law designates another Person.

       Section 11.3. Issuer's Termination Rights. Upon the termination of the
                     ---------------------------
Issuer pursuant to the terms of the Trust Agreement and upon the written
direction of the Issuer, the Indenture Trustee shall assign and convey to the
Holders of the Seller Interest or any of their designees, without recourse,
representation or warranty, all right, title and interest of the Issuer in the
Receivables, whether then existing or thereafter created, all Recoveries related
thereto all monies due or to become due and all amounts received or receivable
with respect thereto (including all moneys then

                                       65

<PAGE>

held in the Collection Account or any Series Account) and all proceeds thereof,
except for amounts held by the Indenture Trustee pursuant to Section 11.2(b).
                                                             ---------------
The Indenture Trustee shall execute and deliver such instruments of transfer and
assignment, in each case without recourse, as shall be reasonably requested in
writing by the Holders of the Seller Interest to vest in the Holders of the
Seller Interest or any of their designees all right, title and interest which
the Indenture Trustee had in the Collateral and such other property.

                                   ARTICLE XII

                                  MISCELLANEOUS

     Section 12.1.  Compliance Certificates and Opinions etc.
                    ----------------------------------------

     (a)  Upon any application or request by the Issuer to the Indenture Trustee
to take any action under any provision of this Indenture, the Issuer shall
furnish to the Indenture Trustee (i) an Officer's Certificate stating that all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with and (ii) (if required by the TIA) an
Independent Certificate from a firm of certified public accountants meeting the
applicable requirements of this Section 12.1, except that, in the case of any
                                ------------
such application or request as to which the furnishing of such documents is
specifically required by any provision of this Indenture, no additional
certificate or opinion need be furnished.

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

          (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.

                                       66

<PAGE>

     (b)  Other than with respect to the release of any Receivables in Removed
Accounts, whenever any property or investment property is to be released from
the lien of this Indenture, the Issuer shall also furnish to the Indenture
Trustee an Officer's Certificate certifying or stating the opinion of each
person signing such certificate as to the fair value (within ninety (90) days of
such release) of the property or securities proposed to be released and stating
that in the opinion of such person the proposed release will not impair the
security under this Indenture in contravention of the provisions hereof.

          (i) Notwithstanding any other provision of this Section 12.1, the
                                                          ------------
     Issuer may (A) collect, liquidate, sell or otherwise dispose of Receivables
     as and to the extent permitted or required by the Transaction Documents and
     (B) make cash payments out of the Series Accounts as and to the extent
     permitted or required by the Transaction Documents.

     Section 12.2. Form of Documents Delivered to Indenture Trustee. In any case
                   ------------------------------------------------
where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be certified
by, or covered by the opinion of, only one such Person, or that they be so
certified or covered by only one document, but one such Person may certify or
give an opinion with respect to some matters and one or more other such Persons
as to other matters, and any such Person may certify or give an opinion as to
such matters in one or several documents.

     Any certificate or opinion of a Responsible Officer of the Issuer may be
based, insofar as it relates to legal matters, upon a certificate or opinion of,
or representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which such officer's certificate or opinion is
based are erroneous. Any such certificate of a Responsible 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
Servicer, a Seller, the Issuer or the Administrator, stating that the
information with respect to such factual matters is in the possession of the
Servicer, a Seller, the Issuer or the Administrator, unless such Responsible
Officer or Counsel has actual knowledge that the certificate or opinion or
representations with respect to such matters are erroneous.

     Where any Person is required to make, give or execute two (2) 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.

                                       67

<PAGE>

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

     Section 12.3. Acts of Noteholders.
                   -------------------

     (a) Any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Indenture to be given or taken by Noteholders
may be embodied in and evidenced by one or more instruments of substantially
similar tenor signed by such Noteholders in person or by their agents duly
appointed in writing and satisfying any requisite percentages as to minimum
number or dollar value of outstanding principal amount represented by such
Noteholders; and, except as herein otherwise expressly provided, such action
shall become effective when such instrument or instruments are delivered to the
Indenture Trustee, and, where it is hereby expressly required, to the Issuer.
Such instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the Noteholders
                                                  ---
signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for any
purpose of this Indenture and conclusive in favor of the Indenture Trustee and
the Issuer, if made in the manner provided in this Section 12.3.
                                                   ------------

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

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

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

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<PAGE>

     Section 12.4. Notices, Etc. to Indenture Trustee and Issuer. Any request,
                   ---------------------------------------------
demand, authorization, direction, notice, consent, waiver or Act of Noteholders
or other documents provided or permitted by the Agreement to be made upon, given
or furnished to, or filed with:

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

     (b) the Issuer by the Indenture Trustee or by any Noteholder shall be
sufficient for every purpose hereunder if in writing and mailed, first-class
postage prepaid, to the Issuer addressed to it and received by it c/o Bankers
Trust Company, Four Albany Street, 10th Floor, New York, New York 10006, Attn:
Corporate Trust and Agency Services, or at any other address previously
furnished in writing to the Indenture Trustee by the Issuer. A copy of each
notice to the Issuer shall be sent in writing and mailed, first-class postage
prepaid, to the Administrator at First Consumers National Bank, 9300 S.W. Gemini
Drive, Beaverton, Oregon 97008, Attn.: President.

     Section 12.5. Notices to Noteholders; Waiver. Where the 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 by
registered or certified mail or first class postage prepaid or national
overnight courier service to each Noteholder affected by such event, at its
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 which is mailed in the manner herein provided shall
conclusively be presumed to have been duly given.

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

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

                                       69

<PAGE>

satisfactory to the Indenture Trustee shall be deemed to be a sufficient giving
of such notice.

     Where this Indenture provides for notice to any Rating Agency, 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 12.6. Alternate Payment and Notice Provisions. Notwithstanding any
                   ---------------------------------------
provision of this Indenture or any of the Notes to the contrary, the Issuer,
with the prior written consent of the Indenture Trustee, may enter into any
agreement with any Holder of a Note providing for a method of payment, or notice
by the Indenture 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 Indenture Trustee a copy of each such agreement
and the Indenture Trustee will cause payments to be made and notices to be given
in accordance with such agreements.

     Section 12.7. Conflict with Trust Indenture Act. If any provision hereof
                   ---------------------------------
limits, qualifies or conflicts with another provision hereof that is required to
be included in this indenture by any of the provisions of the TIA, such required
provision shall control.

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

     Section 12.8. Effect of Headings and Table of Contents. The Article and
                   ----------------------------------------
Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

     Section 12.9. Successors and Assigns. All covenants and agreements in this
                   ----------------------
Indenture by the Issuer shall bind its successors and assigns, whether so
expressed or not.

     Section 12.10. Separability. In case any provision in this Indenture or in
                    ------------
the Notes shall be invalid, illegal or unenforceable, the validity, legality,
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

     Section 12.11. Benefits of Indenture. Nothing in this Indenture or in the
                    ---------------------
Notes, express or implied, shall give to any Person, other than the parties
hereto and

                                       70

<PAGE>

their successors hereunder, and the Noteholders, the Servicer and the Seller,
any benefit.

     Section 12.12. 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 12.13. GOVERNING LAW. THIS INDENTURE AND EACH NOTE SHALL BE
                    -------------
CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF ILLINOIS
APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN; PROVIDED, HOWEVER,
THAT THE DUTIES AND OBLIGATIONS OF THE INDENTURE TRUSTEE SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT
REFERENCE TO ITS CHOICE OF LAW PROVISIONS.

     Section 12.14. Counterparts. This Indenture may be executed in any number
                    ------------
of counterparts, each of which so executed shall be deemed to be an original,
but all such counterparts shall together constitute but one and the same
instrument.

     Section 12.15. Issuer Obligation. No recourse may be taken, directly or
                    -----------------
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or
the Indenture Trustee on the Notes or under this Indenture or any certificate or
other writing delivered in connection herewith or therewith, against (i) the
Indenture Trustee or the Owner Trustee in its individual capacity, (ii) any
owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director, employee or agent of the Indenture
Trustee or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or
of any successor or assign of the Indenture Trustee or the Owner Trustee in its
individual capacity, except as any such Person may have expressly agreed (it
being understood that the Indenture Trustee and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or
failure to pay any installment or call owing to such entity. For all purposes of
this Indenture, in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
of, the terms and provisions of Articles V, VI and VII of the Trust Agreement.
                                ----------  --     ---

                                       71

<PAGE>

     Section 12.16. No Petition. The Indenture Trustee, by entering into
                    -----------
this Indenture, and each Noteholder, by accepting a Note, hereby covenant and
agree that they will not at any time institute against the Issuer, First
Consumers Master Trust or the Seller, or join in instituting against the Issuer,
First Consumers Master Trust or the Seller any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other proceedings under
any United States federal or state bankruptcy or similar law.

                                       72

<PAGE>

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

                                            FIRST CONSUMERS CREDIT CARD
                                            MASTER NOTE TRUST,
                                            as Issuer

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

                                            By: /s/ Eileen M. Hughes
                                                --------------------
                                            Name: Eileen M. Hughes
                                            Title: Vice President

                                            THE BANK OF NEW YORK,

                                            as Indenture Trustee

                                            By: /s/ Greg Anderson
                                               ---------------------
                                            Name: Greg Anderson
                                            Title: Authorized Agent

Acknowledged and Accepted:

FIRST CONSUMERS NATIONAL BANK,
as Servicer

By: /s/ John R. Steele
    ------------------
Name: John R. Steele
Title: Treasurer

FIRST CONSUMERS CREDIT CORPORATION,
as Seller

By: /s/ John R. Steele
    ------------------
Name: John R. Steele
Title: Treasurer

First Consumers Credit Card Master Note Trust

                                       73

<PAGE>

Master Indenture Signature Page

                                       74

<PAGE>

                                     ANNEX A
                                       to
                                MASTER INDENTURE

                                   DEFINITIONS
                                   -----------

                                       75

<PAGE>

                                     ANNEX B
                                       to
                                MASTER INDENTURE

                     PERFECTION REPRESENTATIONS, WARRANTIES
                                  AND COVENANTS

       (A) Effective on the RPA Closing Date, in addition to the
representations, warranties and covenants contained in the Master Indenture,
Issuer hereby represents, warrants and covenants to the Indenture Trustee as
follows:

       (1)   The Master Indenture creates a valid and continuing security
interest (as defined in the applicable UCC) in (i) the Collateral Certificate
and (ii) Permitted Investments (the Collateral Certificate and Permitted
Investments together, the "Collateral" for the purposes of this paragraph (A))
                           ----------                           -------------
in favor of the Indenture Trustee, which security interest is prior to all other
Liens, and is enforceable as such against creditors of and purchasers from the
Issuer (other than Liens permitted pursuant to paragraph (A)(3) below).

       (2)   The Collateral Certificate constitutes a "certificated security,"
"instrument" or "general intangible" within the meaning of the applicable UCC.
The Permitted Investments constitute "instruments," "payment intangibles,"
"uncertificated securities" or "deposit accounts" under the applicable UCC.

       (3)   Issuer owns and has good and marketable title to the Collateral
free and clear of any Lien, claim or encumbrance of any Person; provided that
nothing in this paragraph 3 shall prevent or be deemed to prohibit Issuer from
suffering to exist upon any of the Collateral any Liens for any taxes if such
taxes shall not at the time be due and payable or if FCNB or Issuer, as
applicable, shall currently be contesting the validity thereof in good faith by
appropriate proceedings and shall have set aside on its books adequate reserves
with respect thereto. Issuer has received all consents and approvals required by
the terms of the Collateral to the sale of the Collateral hereunder to the
Indenture Trustee.

       (4)   (a) If perfection is by filing (i) Issuer has caused, or will have
caused within 10 days, 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 Collateral granted to the
Indenture Trustee under the Master Indenture. (b) If perfection is by
possession, all original executed copies of each mortgage note, promissory note
or security certificate that constitute or evidence the Collateral have been
delivered to the Indenture Trustee. Each security certificate either (i) is in
bearer form, (ii) has been indorsed, by an effective indorsement, to the
Indenture Trustee or in blank or (iii) has been registered in the name of the
Indenture Trustee. (c) With regard to

                                       76

<PAGE>

Permitted Investments that constitute "deposit accounts" within the meaning of
the applicable UCC (the "deposit accounts"), Issuer has delivered to the
                         ----------------
Indenture Trustee a fully executed agreement pursuant to which the bank
maintaining the deposit accounts has agreed to comply with all instructions
originated by the Indenture Trustee directing disposition of the funds in such
deposit accounts without further consent by the Issuer, or Issuer has taken all
steps necessary to cause Indenture Trustee to become the account holder of the
deposit accounts. (d) If perfection is by control, with regard to Permitted
Investments that constitute "uncertificated securities" within the meaning of
the applicable UCC, each issuer of Permitted Investments that constitutes an
uncertificated security has registered the Indenture Trustee as the registered
owner, or the Issuer is the registered owner of such uncertificated security and
has agreed in writing that it will comply with instructions originated by the
Indenture Trustee without further consent by the Issuer.

       (5)   Other than the grant of the security interest in the Collateral to
the Indenture Trustee pursuant to the Master Indenture, Issuer has not pledged,
assigned, sold, granted a security interest in, or otherwise conveyed any of the
Collateral. Issuer has not authorized the filing of and is not aware of any
financing statements against Issuer that include a description of collateral
covering the Collateral. (a) If perfection is by filing, Issuer has in its
possession all original copies of the mortgage notes, promissory notes or
security certificates that constitute or evidence the Collateral. The mortgage
notes, promissory notes or security certificates that constitute or evidence the
Collateral do not have any marks or notations indicating that they have been
pledged, assigned or otherwise conveyed to any Person other than the Indenture
Trustee. All financing statements to be filed against the Issuer in favor of the
Indenture Trustee in connection herewith describing the Collateral will contain
a statement to the effect that "A purchase of or security interest in any
collateral described in this financing statement will violate the rights of the
Indenture Trustee". (b) If perfection is by possession, none of the mortgage
notes, promissory notes or security certificates that constitute or evidence the
Collateral has any marks or notations indicating that they have been pledged,
assigned or otherwise conveyed to any Person other than the Indenture Trustee.
With regard to deposit accounts, the deposit accounts are not in the name of any
Person other than the Issuer or the Indenture Trustee. The Issuer has not
consented to the bank maintaining the deposit accounts to comply with
instructions of any Person other than the Indenture Trustee.

       (6)   Issuer is not aware of any judgment, ERISA or tax lien filings
against Issuer.

       (7)   Notwithstanding any other provision of the Master Indenture, the
representations and warranties set forth in this Annex B shall be continuing,
                                                 -------
and remain in full force and effect, until such time as all Notes have been
finally and fully paid. The parties hereto shall not, without satisfying the
Rating Agency Condition, waive a breach

                                       77

<PAGE>

of any representation or warranty set forth in this Annex B. In order to
                                                    -------
evidence the interests of Issuer and the Indenture Trustee under the Master
Indenture, Issuer and Servicer shall take such action, or execute and deliver
such instruments (other than filing financing statements) as may be necessary or
advisable (including, without limitation, such actions as are requested by
Indenture Trustee) to maintain and perfect, as a first priority interest,
Issuer's or the Indenture Trustee's security interest in the Collateral. The
Servicer shall, from time to time and within the time limits established by law,
prepare and present to the Indenture Trustee for the Indenture Trustee's
authorization and approval all financing statements, amendments, continuations
or initial financing statements in lieu of a continuation statement, or other
filings necessary to continue, maintain and perfect as a first-priority
interest. The Indenture Trustee's approval of such filings shall authorize the
Servicer to file such financing statements under the applicable UCC without the
signature of Issuer or Indenture Trustee where allowed by applicable law.
Notwithstanding anything else in the Master Indenture to the contrary, the
Servicer shall not have any authority to file a termination, partial
termination, release, partial release, or any amendment that deletes the name of
a debtor or excludes collateral of any such financing statements, without the
prior written consent of the Indenture Trustee. The Indenture Trustee may
require, prior to authorizing or filing any such termination, partial
termination, release, partial release or amendment, that Servicer provide an
Opinion of Counsel that such filings are authorized under the Master Indenture.

       (B) Effective on the FCMT Termination Date and on each Closing Date with
respect to each Series, in addition to the representations, warranties and
covenants contained in the Master Indenture, Issuer hereby represents, warrants
and covenants to the Indenture Trustee as follows:

       (1)   The Master Indenture creates a valid and continuing security
interest (as defined in the applicable UCC) in (i) the Receivables conveyed
(whether as a valid transfer or as a grant of a security interest) to the Issuer
pursuant to the Servicing Agreement, (ii) all rights to security for such
Receivables (including without limitation rights to bank accounts or
certificates of deposit pledged as collateral) conveyed (whether as a valid
transfer or as a grant of a security interest) to the Issuer pursuant to the
Servicing Agreement (the "Obligor Collateral") and (iii) Permitted Investments
                          ------------------
(the Obligor Collateral and Permitted Investments together with the Receivables,
the "Collateral" for the purposes of this paragraph (B)) in favor of the
     ----------                           -------------
Indenture Trustee, which security interest is prior to all other Liens, and is
enforceable as such against creditors of and purchasers from the Issuer (other
than Liens permitted pursuant to paragraph (B)(3) below).

       (2)   The Receivables constitute "accounts" within the meaning of the
applicable UCC. The Obligor Collateral constitutes security interests on
personal property securing certain of those accounts, and the creation and
perfection of a security interest in such security interests is governed by
Sections 9-203(g) and 9-308(e),

                                       78

<PAGE>

respectively, of the applicable UCC. The Permitted Investments constitute
"instruments," "payment intangibles," "uncertificated securities" or "deposit
accounts" under the applicable UCC.

       (3)   Immediately prior to the grant of the security interest in the
Collateral pursuant to the Master Indenture, Issuer owns and has good and
marketable title to the Collateral, and a valid, perfected security interest in
the collateral for the Receivables in any secured Accounts, in each case, free
and clear of any Lien, claim or encumbrance of any Person; provided that nothing
in this paragraph 3 shall prevent or be deemed to prohibit Issuer from suffering
to exist upon any of the Collateral any Liens for any taxes if such taxes shall
not at the time be due and payable or if FCNB or Issuer, as applicable, shall
currently be contesting the validity thereof in good faith by appropriate
proceedings and shall have set aside on its books adequate reserves with respect
thereto. Issuer has received all consents and approvals required by the terms of
the Collateral to the grant of the security interest in the Collateral hereunder
to the Indenture Trustee.

       (4)   (a) If perfection is by filing (i) Issuer has caused, or will have
caused within 10 days, 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 Collateral granted to the
Indenture Trustee under the Master Indenture. (b) If perfection is by
possession, all original executed copies of each mortgage note, promissory note
or security certificate that constitute or evidence the Collateral have been
delivered to the Indenture Trustee. Each security certificate either (i) is in
bearer form, (ii) has been indorsed, by an effective indorsement, to the
Indenture Trustee or in blank or (iii) has been registered in the name of the
Indenture Trustee. (c) With regard to Permitted Investments that constitute
"deposit accounts" within the meaning of the applicable UCC (the "deposit
                                                                  -------
accounts"), Issuer has delivered to the Indenture Trustee a fully executed
--------
agreement pursuant to which the bank maintaining the deposit accounts has agreed
to comply with all instructions originated by the Indenture Trustee directing
disposition of the funds in such deposit accounts without further consent by the
Issuer, or Issuer has taken all steps necessary to cause Indenture Trustee to
become the account holder of the deposit accounts. (d) If perfection is by
control, with regard to Permitted Investments that constitute "uncertificated
securities" within the meaning of the applicable UCC, each issuer of Permitted
Investments that constitutes an uncertificated security has registered the
Indenture Trustee as the registered owner, or the Issuer is the registered owner
of such uncertificated security and has agreed in writing that it will comply
with instructions originated by the Indenture Trustee without further consent by
the Issuer.

       (5)   Other than the grant of the security interest in the Collateral to
the Indenture Trustee pursuant to the Master Indenture, Issuer has not pledged,
assigned, sold, granted a security interest in, or otherwise conveyed any of the
Collateral. Issuer has not authorized the filing of and is not aware of any
financing statements against

                                       79

<PAGE>

Issuer that include a description of collateral covering the Collateral. (a) If
perfection is by filing, Issuer has in its possession all original copies of the
mortgage notes, promissory notes or security certificates that constitute or
evidence the Collateral. The mortgage notes, promissory notes or security
certificates that constitute or evidence the Collateral do not have any marks or
notations indicating that they have been pledged, assigned or otherwise conveyed
to any Person other than the Indenture Trustee. All financing statements to be
filed against the Issuer in favor of the Indenture Trustee in connection
herewith describing the Collateral will contain a statement to the effect that
"A purchase of or security interest in any collateral described in this
financing statement will violate the rights of the Indenture Trustee". (b) If
perfection is by possession, none of the mortgage notes, promissory notes or
security certificates that constitute or evidence the Collateral has any marks
or notations indicating that they have been pledged, assigned or otherwise
conveyed to any Person other than the Indenture Trustee. With regard to deposit
accounts, the deposit accounts are not in the name of any Person other than the
Issuer or the Indenture Trustee. The Issuer has not consented to the bank
maintaining the deposit accounts to comply with instructions of any Person other
than the Indenture Trustee.

       (6)   Issuer is not aware of any judgment, ERISA or tax lien filings
against Issuer.

       (7)   Notwithstanding any other provision of the Master Indenture, the
representations and warranties set forth in this Annex B shall be continuing,
                                                 -------
and remain in full force and effect, until such time as all Notes have been
finally and fully paid. The parties hereto shall not, without satisfying the
Rating Agency Condition, waive a breach of any representation or warranty set
forth in this Annex B. In order to evidence the interests of Issuer and the
              -------
Indenture Trustee under the Master Indenture, Issuer and Servicer shall take
such action, or execute and deliver such instruments (other than filing
financing statements) as may be necessary or advisable (including, without
limitation, such actions as are requested by Indenture Trustee) to maintain and
perfect, as a first priority interest, Issuer's or the Indenture Trustee's
security interest in the Collateral. The Servicer shall, from time to time and
within the time limits established by law, prepare and present to the Indenture
Trustee for the Indenture Trustee's authorization and approval all financing
statements, amendments, continuations or initial financing statements in lieu of
a continuation statement, or other filings necessary to continue, maintain and
perfect as a first-priority interest. The Indenture Trustee's approval of such
filings shall authorize the Servicer to file such financing statements under the
applicable UCC without the signature of Issuer or Indenture Trustee where
allowed by applicable law. Notwithstanding anything else in the Master Indenture
to the contrary, the Servicer shall not have any authority to file a
termination, partial termination, release, partial release, or any amendment
that deletes the name of a debtor or excludes collateral of any such financing
statements, without the prior written consent of the Indenture Trustee. The
Indenture Trustee may require, prior to authorizing or filing any such
termination,

                                       80

<PAGE>

partial termination, release, partial release or amendment, that Servicer
provide an Opinion of Counsel that such filings are authorized under the Master
Indenture.

                                       81

<PAGE>

                           ANNEX A TO MASTER INDENTURE

                                   DEFINITIONS

     "Account" means each MasterCard(R) or VISA(R)* credit card account
      -------
established pursuant to a Cardholder Agreement, and which is designated as an
"Account" pursuant to (and as defined in) the Pooling and Servicing Agreement on
or prior to the FCMT Termination Date. The term "Account" shall also be deemed
to refer to an Additional Account, but only from and after the Addition Date
with respect thereto, and the term "Account" shall be deemed to refer to any
Removed Account prior to but not after the Removal Date with respect thereto.

     "Acquiring Person" is defined in Section 3.10(b) of the Indenture.
      ----------------                ---------------

     "Act" is defined in Section 12.3(a) of the Indenture.
      ---                ---------------

     "Addition Date" means, with respect to any Additional Accounts, either the
      -------------
date five Business Days after the period or date when such Additional Accounts
are required or permitted to be added as Accounts pursuant to Section 2.6(a) or
                                                              --------------
(b) of the Transfer and Servicing Agreement, or the date on which such
---
Additional Accounts are automatically added as Accounts pursuant to Section
                                                                    -------
2.6(e) of the Transfer and Servicing Agreement.
------

     "Additional Accounts" means the Accounts the receivables arising under
      -------------------
which are transferred to the Issuer in accordance with the procedures set forth
in Section 2.6 of the Transfer and Servicing Agreement.
   -----------

     "Adjusted Collateral Amount" is defined, with respect to any Series (if
      --------------------------
applicable to that Series), in the related Indenture Supplement, or if no
meaning for such term is specified in such Supplement, shall mean the Collateral
Amount for such Series.

     "Administration Agreement" means the Administration Agreement, dated as of
      ------------------------
March 1, 2001, and amended and restated as of December 31, 2001 between the
Issuer and the Administrator, as the same may be amended, supplemented or
otherwise modified from time to time.

----------

*    MasterCard is a registered trademark of MasterCard International
     Incorporated and VISA is a registered trademark of VISA U.S.A., Inc.

<PAGE>

     "Administrator" means FCNB, its capacity as administrator, under the
      -------------
Administration Agreement, and any successor in that capacity.

     "Adverse Effect" means, with respect to any action, that such action will
      --------------
(a) result in the occurrence of a Pay Out Event or an Event of Default or (b)
materially and adversely affect the amount or timing of distributions to be made
to the Noteholders of any Series or Class pursuant to the Transaction Documents.

     "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" means the power to direct the
management and policies of a 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.

     "Aggregate Allocation Percentage" with respect to Principal Receivables,
      -------------------------------
Finance Charge Receivables and Receivables in Defaulted Accounts, as the case
may be, means, as of any date of determination, the sum of such Allocation
Percentages of all Series issued and outstanding on such date of determination;
provided, however, that the Aggregate Allocation Percentage shall not exceed
--------  -------
100%.

     "Aggregate Collateral Amount" means, as of any date of determination, the
      ---------------------------
sum of the Adjusted Collateral Amounts of all Series issued and outstanding on
such date of determination.

     "Aggregate Principal Balance" means, as of any time of determination, the
      ---------------------------
sum of (a) the Aggregate Principal Receivables, (b) the Excess Funding Amount
(exclusive of any investment earnings on such amount) and (c) the amount on
deposit in the Principal Collection Subaccount (exclusive of any investment
earnings on such amount), in each case as of such time.

     "Aggregate Principal Receivables" means, as of any date of determination,
      -------------------------------
the aggregate amount of Principal Receivables (excluding any Discount Option
Receivables) as of the end of the prior day.

     "Allocation Percentage" is defined, for any Series, with respect to
      ---------------------
Principal Receivables, Finance Charge Receivables and Receivables in Defaulted
Accounts, in the related Indenture Supplement.

     "Annual Account Additions" means on any date of determination, the number
      ------------------------
of Accounts the Receivables of which have been added to the Receivables Trust
pursuant to Sections 2.6(a), (b) and (e) of the Transfer and Servicing Agreement
            ---------------  ---     ---
or the corresponding sections of the Pooling and Servicing Agreement, from and

                                      -2-

<PAGE>

including the first day of the eleventh Monthly Period preceding such date of
determination.

     "Annual Quotient" is defined in Section 2.6(c)(ii)(1) of the Transfer and
      ---------------                ---------------------
Servicing Agreement.

     "Applicants" is defined in Section 2.9 of the Indenture.
      ----------                -----------

     "Assignee Seller" is defined in Section 6.6 of the Receivables Purchase
      ---------------                -----------
Agreement.

     "Assignment Agreement" is defined in Section 2.6(b)(iii) of the Transfer
      --------------------                -------------------
and Servicing Agreement.

     "Assignor Seller" is defined in Section 6.6 of the Receivables Purchase
      ---------------                -----------
Agreement.

     "Authorized Newspapers" means each newspaper of general circulation in New
      ---------------------
York, New York, or in any other place specified by Seller, printed in the
English language and customarily published on each Business Day, whether or not
published on Saturdays, Sundays or holidays.

     "Authorized Officer" means:
      ------------------

          (a) 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, containing
     the specimen signature of each such Person, delivered by the Owner Trustee
     to the Indenture Trustee on the Closing Date (as such list may be modified
     or supplemented from time to time thereafter) and 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 list of Authorized Officers (containing the specimen
     signatures of such officers) delivered by the Administrator to the
     Indenture Trustee on the Closing Date (as such list may be modified or
     supplemented from time to time thereafter);

          (b) with respect to the Seller, any officer of the Seller who is
     authorized to act for the Seller in matters relating to the Seller and who
     is identified on the list of Authorized Officers, containing the specimen
     signature of each such Person, delivered by the Seller to the Indenture
     Trustee

                                      -3-

<PAGE>

     on the Closing Date (as such list may be modified or supplemented from time
     to time thereafter); and

          (c) with respect to the Servicer, any officer of the Servicer who is
     authorized to act for the Servicer in matters relating to the Servicer and
     who is identified on the list of Authorized Officers, containing the
     specimen signature of each such Person, delivered by the Servicer to the
     Indenture Trustee on the Closing Date (as such list may be modified or
     supplemented from time to time thereafter).

     "Base Amount" means, at any date of determination, with reference to Annual
      -----------
Account Additions or Quarterly Account Additions, the number of Accounts
included in the Receivables Trust on the first day of the relevant measurement
period before giving effect to any Accounts added to the Receivables Trust on
such first day.

     "Base Rate" is defined, with respect to any Series, in the related
      ---------
Indenture Supplement.

     "Bearer Note" is defined in Section 2.1 of the Indenture.
      -----------                -----------

     "Book-Entry Notes" means beneficial interests in the Notes, ownership
      ----------------
and transfers of which shall be made through book entries by a Clearing Agency
or Foreign Clearing Agency as described in Section 2.13 of the Indenture.
                                           ------------

     "Business Day" means each day which is neither a Saturday, a Sunday nor any
      ------------
other day on which banking institutions in New York, New York, Portland, Oregon
or Chicago, Illinois (or, with respect to any Series, any additional city
specified in the related Indenture Supplement) are authorized or obligated by
law or required by executive order to be closed.

     "Buyer" means First Consumers Credit Corporation, a Delaware corporation.
      -----

     "Cardholder Agreement" means the agreement (and the related application)
      --------------------
for a MasterCard or VISA credit card account between any Obligor and FCNB, as
the same may be amended, modified or otherwise changed from time to time, or in
the case of any Additional Account not originated by FCNB, the agreement (and
the related application) for a MasterCard or VISA credit card account between
the related Obligor and the originator of such Account, as the same may be
amended, modified or otherwise changed from time to time.

     "Cardholder Fees" means, with respect to any Account, any fees specified in
      ---------------
the Cardholder Agreement applicable to such Account, including annual fees, over

                                      -4-

<PAGE>

limit charges, cash advance fees, late charges, returned check fees, and
reinstatement charges.

     "Cardholder Guidelines" means FCNB's policies and procedures relating to
      ---------------------
the operation of its credit card business, including the FCNB Credit Policy and
Operations Manual or such other of its policies and procedures for determining
the creditworthiness of credit card customers, the extension of credit to
customers, the terms on which repayments are required to be made, and relating
to the maintenance of credit card accounts and collection of credit card account
receivables, as said manual and such policies and procedures, as applicable, may
be amended from time to time.

     "Cash Advance Fees" means, with respect to any Account, any fees specified
      -----------------
in the Cardholder Agreement applicable to such Account as cash advance fees or
any similar term.

     "Class" means, with respect to any Series, any one of the classes of Notes
      -----
of that Series.

     "Clearing Agency" means an organization registered as a "clearing agency"
      ---------------
pursuant to Section 17A of the Securities Exchange Act of 1934.

     "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.

     "Clearstream" means Clearstream Banking, societe anonyme, a professional
      -----------
depository incorporated under the laws of Luxembourg, and its successors.

     "Closing Date" means, with respect to any Series, the closing date
      ------------
specified in the related Indenture Supplement.

     "Code" means the Internal Revenue Code of 1986, as amended.
      ----

     "Collateral" is defined in the Granting Clause of the Indenture.
      ----------

     "Collateral Amount" is defined, with respect to any Series, in the related
      -----------------
Indenture Supplement.

     "Collateral Certificate" means the certificate, representing an undivided
      ----------------------
interest in the assets held in the First Consumers Master Trust, issued pursuant
to the Pooling and Servicing Agreement and the Collateral Series Supplement,
dated as of March 1, 2001, to the Pooling and Servicing Agreement.

                                      -5-

<PAGE>

     "Collection Account" is defined in Section 8.3(a) of the Indenture.
      ------------------                --------------

     "Collections" means all payments (including Insurance Proceeds and
      -----------
Recoveries) received by the Servicer or by Seller in respect of the Collateral
Certificate and the Receivables, in the form of cash, checks, wire transfers,
ATM transfers, net proceeds of redemption of certificates of deposit or
liquidation of bank accounts or other form of payment in accordance with the
Cardholder Agreement in effect from time to time on any Receivable. A Collection
processed in respect of an Account (other than a Defaulted Account) in excess of
the aggregate amount of Receivables in such Account as of the Date of Processing
of such Collection shall be deemed to be a payment in respect of Principal
Receivables to the extent of such excess. Collections with respect to any
Monthly Period shall also include the amount of Interchange (if any) allocable
to any Series of Notes pursuant to any Indenture Supplement with respect to such
Monthly Period (to the extent received by the Issuer and deposited into the
Collection Account, on the Transfer Date following such Monthly Period), to be
applied as if such Collections were Finance Charge Receivables for all purposes.

     "Commission" means the Securities and Exchange Commission.
      ----------

     "Conveyance Papers" is defined in Section 4.1(b) of the Receivables
      -----------------                --------------
Purchase Agreement.

     "Corporate Trust Office" means
      ----------------------

          (a) for the Indenture Trustee, the principal office at which at any
     particular time its corporate trust business shall be administered, which
     office at date of the execution of the Indenture is located at 2 North
     LaSalle Street, Suite 1020, Chicago, Illinois 60602, Attention: Structured
     Finance Services, or at such other address as the Indenture Trustee may
     designate from time to time by notice to the Noteholders and the Seller, or
     the principal corporate trust office of any successor Indenture Trustee
     (the address of which the successor Indenture Trustee will notify the
     Noteholders and the Seller);

          (b) for the Owner Trustee, the principal office at which at any
     particular time its corporate trust business shall be administered, which
     office at date of the execution of the Indenture is located at Four Albany
     Street, 10th Floor, New York, New York 10006, Attn: Corporate Trust and
     Agency Services.

     "Coupon" is defined in Section 2.1 of the Indenture.
      ------                -----------

     "Credit Adjustment" is defined in Section 8.4(e) of the Indenture.
      -----------------                --------------

                                      -6-

<PAGE>

     "Credit Insurance" means life, accident, health, disability, involuntary
      ----------------
unemployment or other insurance of an Obligor to Seller to insure payment of any
amount owing by such Obligor under an Account and which proceeds of such
insurance are payable to Seller upon such Obligor's death, disability or
involuntary unemployment.

     "Date of Processing" means, with respect to any transaction, the date on
      ------------------
which such transaction is first recorded on the Servicer's computer master file
of accounts (without regard to the effective date of such recordation).

     "Debtor Relief Laws" means the Bankruptcy Code of the United States of
      ------------------
America and all other applicable liquidation, conservatorship, bankruptcy,
fraudulent conveyance, moratorium, rearrangement, receivership, insolvency,
reorganization, suspension of payments, or similar debtor relief laws from time
to time in effect affecting the rights of creditors (including creditors of
national banking associations) generally.

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

     "Default Amount" means, with respect to any Monthly Period, the result of
      --------------
multiplying (i) the excess, if any, of (A) the aggregate amount of Receivables
in Defaulted Accounts charged off during such Monthly Period over (B) Recoveries
collected during such Monthly Period, times (ii) 1.00 minus the percentage
(expressed as a decimal) of Receivables (other than Receivables in Defaulted
Accounts) constituting Finance Charge Receivables determined in accordance with
Section 1.3 of the Transfer and Servicing Agreement or Section 1.3 of the
Pooling and Servicing Agreement.

     "Defaulted Account" means each Account with respect to which, in accordance
      -----------------
with the Cardholder Guidelines or the Servicer's customary and usual servicing
procedures for servicing credit card receivables comparable to the Receivables,
the Servicer has charged off the Receivables in such Account as uncollectible;
an Account shall become a Defaulted Account on the day on which such Receivables
are recorded as charged off on the Servicer's computer master file of accounts
(regardless of whether such Receivables are charged off before or after the
Initial FCMT Cut-Off Date or Addition Date of such Account, as the case may be).

     "Definitive Notes" means Notes in definitive, fully registered form.
      ----------------

     "Demand Note" is defined in Section 2.9 of the Transfer and Servicing
      -----------                -----------
Agreement.

                                      -7-

<PAGE>

         "Deposit Date" means each day on which the Servicer deposits
          ------------
Collections in the Collection Account.

         "Deposit Obligation" means the obligation of the Seller to make any
          ------------------
deposit to the Excess Funding Account or the Collection Account pursuant to
Section 2.4(d) of the Transfer and Servicing Agreement or Section 8.4(g) of the
--------------                                            --------------
Indenture.

         "Determination Date" means the seventh calendar day prior to each
          ------------------
Transfer Date.

         "Discount Option Date" means each date on which a Discount Percentage
          --------------------
designated by the Seller pursuant to Section 2.8 of the Transfer and Servicing
                                     -----------
Agreement takes effect.

         "Discount Option Receivable Collections" means on any Date of
          --------------------------------------
Processing occurring in any Monthly Period succeeding the Monthly Period in
which the Discount Option Date occurs, the product of (a) a fraction (i) the
numerator of which is the Discount Option Receivables and (ii) the denominator
of which is the sum of the Principal Receivables and the Discount Option
Receivables in each case (for both the numerator and the denominator) at the end
of the prior Date of Processing and (b) Collections of Original Principal
Receivables on such Date of Processing.

         "Discount Option Receivables" is defined in Section 2.8 of the Transfer
          ---------------------------                -----------
and Servicing Agreement. The aggregate amount of Discount Option Receivables
outstanding on any Date of Processing occurring on or after the Discount Option
Date shall equal the result of (a) the aggregate Discount Option Receivables at
the end of the prior Date of Processing (which amount, prior to the Discount
Option Date, shall be zero) plus (b) any new Discount Option Receivables created
on such Date of Processing minus (c) any Discount Option Receivables Collections
received on such Date of Processing. Discount Option Receivables created on any
Date of Processing mean the product of the amount of any Original Principal
Receivables created on such Date of Processing and the Discount Percentage.

         "Discount Percentage" is defined in Section 2.8 of the Transfer and
          -------------------                -----------
Servicing Agreement.

         "Distribution Date" means, unless otherwise specified in the Indenture
          -----------------
Supplement for a Series, the fifteenth day of each month or, if such fifteenth
day is not a Business Day, the next succeeding Business Day.

         "Dollars," "$" or "U.S. $" means United States dollars.
          -------    -      ------

         "DTC" means The Depository Trust Company.
          ---

                                      -8-

<PAGE>

         "Eligible Account" means, (a) with respect to "Accounts" designated
          ----------------
pursuant to (and as defined in) the Pooling and Servicing Agreement prior to the
FCMT Termination Date, Accounts which are "Eligible Accounts" under (and as
defined in) the Pooling and Servicing Agreement and (b) as of the relevant
Notice Date in respect of Additional Accounts added pursuant to Section 2.6(a)
                                                                --------------
or (b) of the Transfer and Servicing Agreement or the fifth Business Day prior
   ---
to the relevant Addition Date in respect of Additional Accounts added pursuant
to Section 2.6(e) of the Transfer and Servicing Agreement), each Account:
   --------------

             (a)   which is payable in United States dollars;

             (b)   which is serviced in any credit service center of Seller
         which is located in the United States;

             (c)   the Obligor on which has provided, as its initial billing
         address, an address which is located in the United States or its
         territories or possessions;

             (d)   which the Seller has not finally determined to be counterfeit
         or fraudulent;

             (e)   which the Seller has not charged off in its customary and
         usual manner for charging off such Accounts as of the relevant Notice
         Date or Addition Date;

             (f)   which was originated by FCNB in the ordinary course of
         business, unless the Rating Agency Condition has otherwise been
         satisfied with respect to such Account;

             (g)   which has not been sold or pledged to any other party;

             (h)   which does not have receivables which have been sold or
         pledged to any party other than Seller pursuant to the Receivables
         Purchase Agreement; and

             (i)   is a "VISA" or "MasterCard" revolving credit card account.

         "Eligible Institution" means any depository institution (which may be
          --------------------
the Owner Trustee or the Indenture Trustee) organized under the laws of the
United States or any one of the states thereof, including the District of
Columbia (or any domestic branch of a foreign bank), which depository
institution at all times (a) has FDIC deposit insurance and (b) has (i) a
long-term unsecured debt rating acceptable to the Rating Agencies, which in the
case of Standard and Poor's shall be a rating of

                                      -9-

<PAGE>

AAA or (ii) a certificate of deposit rating acceptable to the Rating Agencies,
which in the case of Standard and Poor's shall be a rating of A-1+.
Notwithstanding the previous sentence, any institution the appointment of which
satisfies the Rating Agency Condition shall be considered an Eligible
Institution. If so qualified, the Servicer may be considered an Eligible
Institution for the purposes of this definition.

         "Eligible Receivable" means each Receivable:
          -------------------

                (a)   which has arisen under an Eligible Account;

                (b)   which was created in compliance, in all material respects,
         with all Requirements of Law applicable to FCNB or the originator of
         the related Account pursuant to a Cardholder Agreement which complies,
         in all material respects, with all Requirements of Law applicable to
         FCNB or the originator of the related Account;

                (c)   with respect to which all consents, licenses, approvals or
         authorizations of, or registrations or declarations with, any
         Governmental Authority required to be obtained, effected or given by
         FCNB or the originator of the related Account in connection with the
         creation of such Receivable or the execution, delivery and performance
         by FCNB or the originator of the related Account, as applicable, of the
         Cardholder Agreement pursuant to which such Receivable was created,
         have been duly obtained, effected or given and are in full force and
         effect as of such date of creation;

                (d)   as to which, immediately prior to the transfer of same to
         the Receivables Trust by Seller, Seller had good title thereto free and
         clear of all Liens arising under or through FCNB, Seller or their
         respective Affiliates (other than Liens permitted pursuant to Section
         2.5(b) of the Transfer and Servicing Agreement);

                (e)   which is the legal, valid and binding payment obligation
         of the Obligor thereon, enforceable against such Obligor in accordance
         with its terms, except as such enforceability may be limited by
         applicable Debtor Relief Laws, and except as such enforceability may be
         limited by general principles of equity (whether considered in a suit
         at law or in equity);

                (f)   which constitutes an "account" under and as defined in
         Article 9 of the UCC as then in effect in the applicable jurisdiction;

                (g)   which, at the time of transfer to the Receivables Trust,
         has not been waived or modified except for a Receivable which has been
         waived or modified as permitted in accordance with the Cardholder
         Guidelines and

                                      -10-

<PAGE>

         which waiver or modification is reflected in FCNB's computer files of
         revolving credit card accounts;

                (h)   which, at the time of transfer to the Receivables Trust,
         is not (to the knowledge of Seller) subject to any right of rescission,
         set-off, counterclaim or any other defense (including defenses arising
         out of violations or usury laws) of the Obligor, which requires that
         such Receivable be charged off in accordance with the Cardholder
         Guidelines, other than defenses arising out of applicable bankruptcy,
         insolvency, reorganization, moratorium or other similar laws affecting
         the enforcement of creditors' rights in general;

                (i)   as to which, at the time of transfer to the Receivables
         Trust, each of the Seller and FCNB has satisfied all its obligations
         required to be satisfied by such time;

                (j)   which has been the subject of either a valid transfer and
         assignment from the Seller to the Issuer of the Seller's right, title
         and interest therein (including any proceeds thereof), or the grant by
         the Seller to the Issuer of a valid first priority perfected security
         interest therein (and the proceeds thereof); and

                (k)   as to which at the time of transfer to the Issuer, the
         Seller has not taken any action, or omitted to take any action, that
         would impair the rights of the Issuer or the Noteholders.

         "Eligible Servicer" means the Indenture Trustee or, if the Indenture
          -----------------
Trustee is not acting as Servicer, an entity which, at the time of its
appointment as Servicer, (a) is servicing a portfolio of revolving credit card
accounts, (b) is legally qualified and has the capacity to service the Accounts,
(c) has demonstrated the ability to service professionally and competently a
portfolio of similar accounts in accordance with high standards of skill and
care, (d) is qualified to use the software that is then being used to service
the Accounts or obtains the right to use or has its own software which is
adequate to perform its duties under this Agreement and (e) has a net worth of
at least $50,000,000 as of the end of its most recent fiscal quarter.

         "Enhancement" means, with respect to any Series, the cash collateral
          -----------
account, letter of credit, surety bond, guaranteed rate agreement, maturity
guaranty facility, tax protection agreement, interest rate swap or any other
contract, arrangement or agreement for the benefit of the Noteholders of such
Series (or Noteholders of a Class within such Series), as designated in the
applicable Indenture Supplement.

                                      -11-

<PAGE>

         "Enhancement Agreement" means any agreement, instrument or document
          ---------------------
governing the terms of any Series Enhancement or pursuant to which any Series
Enhancement is issued or outstanding.

         "Enhancement Provider" means, with respect to any Series, the Person,
          --------------------
if any, designated as such in the related Indenture Supplement.

         "Euroclear Operator" means Euroclear Bank S.A./N.V.
          ------------------

         "Event of Default" is defined in Section 5.2 of the Indenture.
          ----------------                -----------

         "Excess Allocation Series" means a Series that, pursuant to the
          ------------------------
Indenture Supplement therefor, is entitled to receive certain excess Collections
of Finance Charge Receivables, as more specifically set forth in such Indenture
Supplement. If so specified in the Indenture Supplement for a Group of Series,
such Series may be Excess Allocation Series only for the Series in such Group.

         "Excess Finance Charge Collections" is defined in Section 8.6 of the
          ---------------------------------                -----------
Indenture.

         "Excess Funding Account" is defined in Section 8.3 of the Indenture.
          ----------------------                -----------

         "Excess Funding Amount" means the amount on deposit in the Excess
          ---------------------
Funding Account.

         "Exchange Act" means the Securities Exchange Act of 1934.
          ------------

         "Expenses" is defined in Section 7.2 of the Trust Agreement.
          --------                -----------

         "FCMT Termination Date" means the date on which the First Consumers
          ---------------------
Master Trust is terminated and all of the Receivables held by First Consumers
Master Trust are transferred to the Issuer.

         "FCMT Trustee" means the trustee under the Pooling and Servicing
          ------------
Agreement.

         "FCNB" means First Consumers National Bank, a national banking
          ----
association.

         "FDIC" means the Federal Deposit Insurance Corporation.
          ----

         "Finance Charge Collections" means, for any period, the amount of
          --------------------------
Collections allocated to Finance Charge Receivables during such period in

                                      -12-

<PAGE>

accordance with Section 1.3 of the Transfer and Servicing Agreement plus
                -----------
Discount Option Receivables Collections for such period. Payments on account of
Net Recoveries shall also be treated as Finance Charge Collections.

         "Finance Charge Receivables" means, with respect to any Monthly Period,
          --------------------------
(a) all amounts billed to Obligors on any Account during such Monthly Period in
respect of Finance Charges, Cash Advance Fees and Cardholder Fees, and (b) the
amount of Interchange (if any) allocable to any Series of Notes pursuant to any
Indenture Supplement with respect to such Monthly Period.

         "Finance Charge Shortfalls" is defined in Section 8.6 of the Indenture.
          -------------------------                -----------

         "Finance Charge Subaccount" means the finance charge subaccount of the
          -------------------------
Collections Account.

         "Finance Charges" means, as of any day, the amount of interest as
          ---------------
determined by the periodic finance charge rate assessed on the Cycle Billing
Date on or next preceding such day pursuant to the Cardholder Agreements.

         "First Consumers Master Trust" means the trust formed by the Pooling
          ----------------------------
and Servicing Agreement.

         "Fitch" means Fitch, Inc.
          -----

         "Foreign Clearing Agency" means Clearstream and the Euroclear Operator.
          -----------------------

         "GAAP" means generally accepted accounting principles in the United
          ----
States of America in effect from time to time.

         "Global Note" is defined in Section 2.16 of the Indenture.
          -----------                ------------

         "Governmental Authority" means the United States of America, any state
          ----------------------
or other political subdivision thereof and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government.

         "Grant" means to mortgage, pledge, bargain, warrant, alienate, remise,
          -----
release, convey, assign, transfer, create, and grant a lien upon and a security
interest in and right of set-off against, deposit, set over and confirm pursuant
to this Indenture. A Grant of the Collateral 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 if available the
immediate and continuing right to claim for, collect, receive and give receipt
for principal and interest payments in respect of the Collateral and all other
moneys payable thereunder, to give and receive notices

                                      -13-

<PAGE>

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.

         "Group" means, with respect to any Series, the group of Series, if any,
          -----
in which the related Indenture Supplement specifies such Series is to be
included.

         "Indebtedness" means, with respect to any Person at any date, (a) all
          ------------
indebtedness of such Person for borrowed money or for the deferred purchase
price of property or services (other than current liabilities incurred in the
ordinary course of business and payable in accordance with customary trade
practices) or which is evidenced by a note, bond, debenture or similar
instrument, (b) all obligations of such Person under capital leases, (c) all
obligations of such Person in respect of acceptances issued or created for the
account of such Person and (d) all liabilities secured by any Lien on any
property owned by such Person even though such Person has not assumed or
otherwise become liable for the payment thereof.

         "Indemnified Parties" is defined in Section 7.2 of the Trust Agreement.
          -------------------                -----------

         "Indenture" means the Master Indenture, dated as of March 1, 2001, and
          ---------
amended and restated as of December 31, 2001, between the Issuer and the
Indenture Trustee, as the same may be amended, supplemented or otherwise
modified from time to time.

         "Indenture Supplement" means, with respect to any Series, a supplement
          --------------------
to this Indenture, executed and delivered in connection with the original
issuance of the Notes of such Series pursuant to Section 2.12 of the Indenture,
                                                 ------------
and an amendment to this Indenture executed pursuant to Sections 10.1 or 10.2 of
                                                        -------------    ----
the Indenture, and, in either case, including all amendments thereof and
supplements thereto.

         "Indenture Trustee" means The Bank of New York, in its capacity as
          -----------------
trustee under this Indenture, its successors in interest and any successor
indenture trustee under this Indenture.

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

                                      -14-

<PAGE>

          "Independent Certificate" means a certificate or opinion to be
           -----------------------
delivered to the Indenture Trustee under the circumstances described in, and
otherwise complying with, the applicable requirements of Section 12.1 of the
                                                         ------------
Indenture, made by an Independent appraiser or other expert appointed by an
Issuer Order, 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.

          "Indirect Participant" means other Persons such as securities brokers
           --------------------
and dealers, banks and trust companies that clear or maintain a custodial
relationship with a participant of DTC, either directly or indirectly.

          "Ineligible Receivables" is defined: (a) for purposes of the Transfer
           ----------------------
and Servicing Agreement in Section 2.4(d) of that Agreement; and (b) for
                           --------------
purposes of the Receivables Purchase Agreement, in Section 6.1 of that
                                                   -----------
Agreement.

          "Initial Closing Date" means March 6, 2001.
           --------------------

          "Initial Collateral Amount" with respect to any Series, shall have the
           -------------------------
meaning specified in the related Indenture Supplement.

          "Initial FCMT Cut-Off Date" means September 22, 1992.
           -------------------------

          "Insolvency Event" is defined in Section 6.1 of the Transfer and
           ----------------
Servicing Agreement.

          "Insurance Proceeds" means any amounts received pursuant to the
           ------------------
payment of benefits under any credit life insurance policies, credit disability
or unemployment insurance policies covering any Obligor with respect to
Receivables under such Obligor's Account.

          "Interchange" means interchange fees paid or payable to the Seller, in
           -----------
its capacity as credit card issuer, through MasterCard International
Incorporated and/or VISA U.S.A., Inc. in connection with cardholder charges for
goods and services.

         "Investment Company Act" means the Investment Company Act of 1940.
          ----------------------

          "Investor Monthly Servicing Fee" is defined in Section 3.2 of the
           ------------------------------
Transfer and Servicing Agreement.

          "Issuer" means the First Consumers Credit Card Master Note Trust,
           ------
which is established by the Trust Agreement.

                                      -15-

<PAGE>

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

         "Lien" means any mortgage, deed of trust, pledge, hypothecation,
          ----
assignment, deposit arrangement, encumbrance, lien (statutory or other), equity
interest, participation interest, preference, priority or other security
agreement or preferential arrangement of any kind or nature whatsoever including
any conditional sale or other title retention agreement, any financing lease
having substantially the same economic effect as any of the foregoing and the
filing of any financing statement under the applicable UCC (other than any such
financing statement filed for informational purposes only) or comparable law of
any jurisdiction to evidence any of the foregoing; provided, however, that any
                                                   --------  -------
assignment pursuant to the Indenture shall not be deemed to constitute a Lien.

         "Minimum Aggregate Principal Balance" means, on any date of
          -----------------------------------
determination, the greater of (a) the sum of the Aggregate Collateral Amount,
plus the Minimum Seller Amount, in each case as of such date and (b) the sum of
the numerators used to determine the Allocation Percentages for Principal
Collections of all Series outstanding on such date.

         "Minimum Average Seller Percentage" means the weighted average (by
          ---------------------------------
Adjusted Collateral Amount) Minimum Seller Percentages for all Series then
outstanding.

         "Minimum Seller Amount" means, on any Determination Date, the Aggregate
          ---------------------
Collateral Amount at the end of the day prior to such Determination Date, times
the Minimum Average Seller Percentage; provided that if such percentage is zero,
                                       -------- ----
the Minimum Seller Amount shall be zero. FCNB may reduce the Minimum Seller
Amount by written notice to the Indenture Trustee, provided that (a) the Rating
Agency Condition is satisfied with respect to such reduction and (b) FCNB
delivers to the Indenture Trustee an Opinion of Counsel to the effect that such
reduction will not have a material adverse effect on the Federal income tax
characterization of any outstanding Series.

         "Minimum Seller Percentage" is defined, for any Series, in the related
          -------------------------
Indenture Supplement.

         "Monthly Period" means the period from and including the first day of
          --------------
the calendar month preceding a related Determination Date to and including the
last day of such calendar month.

                                      -16-

<PAGE>

         "Monthly Seller Servicing Fee" is defined in Section 3.2 of the
          ----------------------------                -----------
Transfer and Servicing Agreement.

         "Monthly Servicing Fee" is defined in Section 3.2 of the Transfer and
          ---------------------                -----------
Servicing Agreement.

         "Moody's" means Moody's Investors Service, Inc.
          -------

         "Net Recoveries" means, with respect to any Monthly Period, the excess,
          --------------
if any, of Recoveries collected during such Monthly Period over the aggregate
amount of Principal Receivables in Defaulted Accounts charged off during such
Monthly Period.

         "New Issuance" is defined in Section 2.12(a) of the Indenture.
          ------------                ---------------

         "Notes" means all Series of Notes issued by the Issuer pursuant to this
          -----
Indenture and the applicable Indenture Supplements.

         "Noteholder" or "Holder" means the Person in whose name a Note is
          ----------      ------
registered on the Note Register and, if applicable, the holder of any Global
Note, or Coupon, as the case may be, or such other Person deemed to be a
"Noteholder" or "Holder" in any related Indenture Supplement.

         "Note Interest Rate" means, as of any particular date of determination
          ------------------
and with respect to any Series or Class, the interest rate as of such date
specified therefor in the related Indenture Supplement.

         "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 accordance with the rules of such Clearing Agency).

         "Note Principal Balance" means, as of any particular date of
          ----------------------
determination and with respect to any Series or Class, the amount specified in
the related Indenture Supplement.

         "Note Register" is defined in Section 2.5 of the Indenture.
          -------------                -----------

         "Notes" means all Series of Notes issued by the Issuer pursuant to this
          -----
Indenture and the applicable Indenture Supplements.

                                      -17-

<PAGE>

     "Notice Date" is defined in Section 2.6(c) of the Transfer and Servicing
      -----------                --------------
Agreement.

     "Notices" is defined in Section 9.4(a) of the Transfer and Servicing
      -------                --------------
Agreement.

     "Obligor" means, with respect to any Account, the Person or Persons
      -------
obligated to make payments with respect to such Account, including any guarantor
thereof.

     "Officer's Certificate" means a certificate signed by any officer of Seller
      ---------------------
or the Servicer and delivered to the Indenture Trustee.

     "Opinion of Counsel" means a written opinion of counsel, who may be counsel
      ------------------
for Seller or the Servicer and who shall be reasonably acceptable to the
Indenture Trustee, provided that a Tax Opinion shall be an opinion of Rooks,
                   --------
Pitts and Poust or other nationally recognized tax counsel.

     "Original Principal Receivables" means Principal Receivables determined
      ------------------------------
without giving effect to any reduction thereof attributable to Discount Option
Receivables.

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

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

          (ii)  Notes or portions thereof the payment for which money in the
     necessary amount has been theretofore deposited with the Indenture Trustee
     or any Paying Agent in trust for the Holders of such Notes (provided,
                                                                 --------
     however, that if such Notes are to be redeemed, notice of such redemption
     -------
     has been duly given pursuant to this Indenture or provision therefor,
     satisfactory to the Indenture 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 Indenture Trustee is presented that any such Notes are
     held by a protected purchaser;

provided that in determining whether the Holders of Notes representing the
--------
requisite Outstanding Notes have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, Notes owned by the Issuer, any
other obligor upon the

                                      -18-

<PAGE>

Notes, the Seller, the Servicer or any Affiliate of any of the foregoing Persons
shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Indenture Trustee shall be protected in relying upon any
such request, demand, authorization, direction, notice, consent or waiver, only
Notes that a Trustee Officer of the Indenture Trustee actually knows to be so
owned shall be so disregarded. Notes so owned that have been pledged in good
faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Indenture Trustee the pledgee's right so to act with respect
to such Notes and that the pledgee is not the Issuer, any other obligor upon the
Notes, the Seller, the Servicer or any Affiliate of any of the foregoing
Persons. In making any such determination, the Indenture Trustee may
conclusively rely on the representations of the pledgee and shall not be
required to undertake any independent investigation.

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

         "Owner" means Seller, as the holder of the beneficial ownership
          -----
interest in the Issuer and any successor or assign in that capacity.

         "Owner Trustee" means Bankers Trust Company, in its capacity as owner
          -------------
trustee under the Trust Agreement, its successors in interest and any successor
owner trustee under the Trust Agreement.

         "Paired Series" means (i) each Series which has been paired with
          -------------
another Series (which Series may be prefunded or partially prefunded), such that
the reduction of the Collateral Amount or Adjusted Collateral Amount of such
Series results in the increase of the Collateral Amount of such other Series, as
described in the related Indenture Supplements, and (ii) such other Series.

         "Pay Out Event" means, with respect to any Series, a Series Pay Out
          -------------
Event relating to that Series or a Trust Pay Out Event.

         "Paying Agent" means any paying agent appointed pursuant to Section 2.8
          ------------                                               -----------
of the Indenture and shall initially be the Indenture Trustee; provided that if
                                                               --------
the Indenture Supplement for a Series so provides, a separate or additional
Paying Agent may be appointed with respect to such Series.

         "Permitted Assignee" means any Person who, if it were to purchase
          ------------------
Receivables (or interests therein) in connection with a sale thereof pursuant to
Sections 5.5(a) and 5.16 of the Indenture, would not cause the Issuer to be
---------------     ----
taxable as a publicly traded partnership for federal income tax purposes.

                                      -19-

<PAGE>

         "Permitted Investments" means (a) negotiable instruments or securities
          ---------------------
represented by instruments in bearer or registered form which evidence (i)
obligations of or guaranteed by the United States of America, (ii) time deposits
in, certificates of deposit of, or bankers' acceptances issued by, any
depositary institution or trust company (other than Seller or an Affiliate of
Seller) incorporated under the laws of the United States of America or any state
thereof and subject to supervision and examination by federal or state banking
or depositary institution authorities, provided, however, that at the time of
                                       --------  -------
the Trust's investment or contractual commitment to invest therein, the
certificates of deposit or short-term deposits, if any, or long-term unsecured
debt obligations (other than such obligation whose rating is based on collateral
or on the credit of a Person other than such institution or trust company) of
such depositary institution or trust company shall have a credit rating from
Moody's and Standard & Poor's of P-1 and A-1+, respectively, in the case of the
certificates of deposit or short-term deposits, or a rating from Moody's of Aaa
and from Standard & Poor's of AAA in the case of the long-term unsecured debt
obligations, or such time deposits are fully insured by the FDIC, (iii)
certificates of deposit (other than those of Seller or an Affiliate of Seller)
having, at the time of the Trust's investment or contractual commitment to
invest therein, a rating from Moody's and Standard & Poor's of P-1 and A-1+,
respectively, and (iv) investments in money market funds rated in the highest
investment category or otherwise approved in writing by Moody's and Standard &
Poor's, which in the case of Standard & Poor's is AAAmg; (b) demand deposits in
the name of the Issuer or the Indenture Trustee in any depositary institution or
trust company referred to in (a) (ii) above; and (c) securities not represented
by an instrument, which are registered in the name of the Indenture Trustee upon
books maintained for that purpose by or on behalf of the issuer thereof and
identified on books maintained for that purpose by the Indenture Trustee as held
for the benefit of the Issuer or the Noteholders, and consisting of shares of an
open end diversified investment company which is registered under the Investment
Company Act of 1940, as amended, and which (i) invests its assets exclusively in
obligations of or guaranteed by the United States of America or any
instrumentality or agency thereof having in each instance a final maturity date
of less than one year from their date of purchase or other Permitted
Investments, (ii) seeks to maintain a constant net asset value per share and
(iii) has aggregate net assets of not less than $100,000,000 on the date of
purchase of such shares, and which satisfies the Rating Agency Condition;
provided, however, that only those investments described above which are
--------  -------
permitted to be made by a national banking association shall be deemed to be
"Permitted Investments" hereunder.

         "Permitted Transaction" mean any transaction or series of related
          ---------------------
transactions pursuant to which the Seller finances an interest in the Trust
Assets and (i) as to which the Rating Agency Condition is satisfied and (ii)
which in the reasonable judgment of the Seller as evidenced by an Officer's
Certificate, will not have a material adverse effect on the interests of the
Noteholders.

                                      -20-

<PAGE>

         "Person" means any legal person, including any individual, corporation,
          ------
partnership, joint venture, association, joint-stock company, trust,
unincorporated organization, governmental entity or other entity of similar
nature.

         "Pooling and Servicing Agreement" means the Pooling and Servicing
          -------------------------------
Agreement, dated as of September 30, 1992, as amended and restated February 1,
1999, and as amended and restated a second time as of December 31, 2001, and
heretofore amended, among FCNB and The Bank of New York (as successor-in-
interest to the corporate trust administration of Harris Trust and Savings
Bank), as trustee.

         "Portfolio Yield" is defined, with respect to any Series, in the
related Indenture Supplement.

         "Principal Collections" means all Collections that are not Finance
          ---------------------
Charge Collections.

         "Principal Collections Subaccount" means the principal collections
          --------------------------------
subaccount of the Collections Account.

         "Principal Receivable" means each Receivable other than Finance Charge
          --------------------
Receivables and Receivables in Defaulted Accounts. A Principal Receivable shall
be deemed to have been created at the end of the day on the Date of Processing
of such Receivable. In calculating the aggregate amount of Principal Receivables
on any day, the amount of Principal Receivables shall be reduced by the
aggregate amount of credit balances in the Accounts on such day. Any Principal
Receivables which Seller is unable to transfer as provided in Section 2.5(c) of
                                                              --------------
the Transfer and Servicing Agreement shall not be included in calculating the
aggregate amount of Principal Receivables.

         "Principal Sharing Series" means a Series that, pursuant to the
          ------------------------
Indenture Supplement therefor, is entitled to receive Shared Principal
Collections.

         "Principal Shortfalls" is defined in Section 8.5 of the Indenture.
          --------------------                -----------

         "Principal Terms" means, with respect to any Series, (a) the name or
          ---------------
designation; (b) the initial principal amount (or method for calculating such
amount), the Collateral Amount and the Seller Amount; (c) the Note Interest Rate
for each Class of Notes of such Series (or method for the determination
thereof); (d) the payment date or dates and the date or dates from which
interest shall accrue; (e) the method for allocating Collections to Noteholders;
(f) the designation of any Series Accounts and the terms governing the operation
of any such Series Accounts; (g) the Servicing Fee; (h) the terms of any form of
Series Enhancements with respect

                                      -21-

<PAGE>

thereto; (i) the terms on which the Notes of such Series may be exchanged for
Notes of another Series, repurchased by the Seller or remarketed to other
investors; (j) the Series Termination Date; (k) the number of Classes of Notes
of such Series and, if more than one Class, the rights and priorities of each
such Class; (l) the extent to which the Notes of such Series will be issuable in
temporary or permanent global form (and, in such case, the depositary for such
global note or notes, the terms and conditions, if any, upon which such global
note or notes may be exchanged, in whole or in part, for Definitive Notes, and
the manner in which any interest payable on a temporary or global note will be
paid); (m) whether the Notes of such Series may be issued in bearer form and any
limitations imposed thereon; (n) the priority of such Series with respect to any
other Series; (o) whether such Series will be part of a Group; (p) whether such
Series will be a Principal Sharing Series and whether such Series is entitled to
share Shared Seller Principal Collections; (q) whether such Series will be an
Excess Allocation Series; (r) the Distribution Date; (s) the legal final
maturity date on which the rights of the Noteholders of such Series to receive
payments from the Issuer will terminate, which shall not be later than the
Scheduled Trust Termination Date; (t) whether Interchange will be included in
the funds available to be paid for such Series; and (u) whether such Series will
or may be a Paired Series and the Series, with which it will be paired, if
applicable.

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

         "Purchase Price" is defined in Section 3.1 of the Receivables Purchase
          --------------                -----------
Agreement.

         "Qualified Account" means either (a) a non-interest bearing segregated
          -----------------
account with an Eligible Institution, or (b) a non-interest bearing segregated
trust account with the corporate trust department of a depository institution
organized under the laws of the United States or any one of the states thereof,
including the District of Columbia (or any domestic branch of a foreign bank),
and acting as a trustee for funds deposited in such account, so long as any of
the securities of such depository institution shall have a credit rating from
each Rating Agency in one of its generic credit rating categories that signifies
investment grade.

         "Quarterly Account Additions" means on any Determination Date, the
          ---------------------------
number of Accounts the Receivables of which have been added to the Receivables
Trust pursuant to Sections 2.6(a), (b) and (e) of the Transfer and Servicing
                  ---------------  ---     ---
Agreement during the current calendar quarter.

         "Quarterly Quotient" is defined in Section 2.6(c)(ii)(2) of the
          ------------------                ---------------------
Transfer and Servicing Agreement.

                                      -22-

<PAGE>

         "Rating Agency" means, with respect to any outstanding Series or Class,
          -------------
each rating agency, as specified in the applicable Indenture Supplement,
selected by the Seller to rate the Notes of such Series or Class.

         "Rating Agency Condition" means, with respect to any action or series
          -----------------------
of related actions or proposed transaction or series of related proposed
transactions, that each Rating Agency shall have notified Seller and the
Indenture Trustee in writing that such action or series of related actions or
the consummation of such proposed transaction or series of related transactions
will not result in a reduction or withdrawal of the rating of any outstanding
Series or Class with respect to which it is a Rating Agency.

         "Reassignment Agreement" is defined in Section 2.7(b)(ii) of the
          ----------------------                ------------------
Transfer and Servicing Agreement.

         "Receivable" means any amount owing by an Obligor under an Account
          ----------
(including amounts in Defaulted Accounts) from time to time, including amounts
owing for the purchase of goods and services, Finance Charges, Cash Advance
Fees, Cardholder Fees, Special Fees and premiums for Credit Insurance, if any.

         "Receivables Purchase Agreement" means the Receivables Purchase
          ------------------------------
Agreement dated as of December 31, 2001, among Seller and FCNB, as amended from
time to time, and includes any receivables purchase agreement substantially in
the form of such agreement entered into between the Seller and FCNB.

         "Receivables Trust" means (a) prior to the FCMT Termination Date, First
          -----------------
Consumers Master Trust and (b) on and after the FCMT Termination Date, the
Issuer.

         "Reconveyance" means an instrument substantially in the form and upon
          ------------
the terms of Exhibit B to the Receivables Purchase Agreement.
             ---------

         "Record Date" means, with respect to any Distribution Date, the last
          -----------
Business Day of the calendar month immediately preceding such Distribution Date
unless otherwise specified for a Series in the related Indenture Supplement.

         "Recoveries" means, with respect to any Monthly Period, all amounts
          ----------
received, including Insurance Proceeds and net proceeds from the liquidation of
certificates of deposit or bank accounts, by the Servicer with respect to
Receivables which have previously been charged off as uncollectible, after
deducting, in the case of each such amount received, a percentage of such amount
which in the good faith judgment of the Servicer represents the amount of
out-of-pocket costs incurred by the Servicer during the preceding fiscal year
(or other, more recent period deemed

                                      -23-

<PAGE>

appropriate by the Servicer) as a percentage of collections during such period
in respect of charged off receivables in all credit card accounts (including the
Accounts) serviced by the Servicer.

         "Redemption Date" means, with respect to any Series, the date or dates
          ---------------
specified in the related Indenture Supplement.

         "Registered Notes" is defined in Section 2.1 of the Indenture.
          ----------------                -----------

         "Removal Date" is defined in Section 2.7 of the Transfer and Servicing
          ------------                -----------
Agreement.

         "Removal Notice Date" means the fifth Business Day prior to a Removal
          ----------------
Date.

         "Removed Accounts" is defined in Section 2.7(a) of the Transfer and
          ----------------
Servicing Agreement.

         "Repurchase Date" is defined in Section 6.2 of the Receivables Purchase
          ---------------                -----------
Agreement.

         "Repurchase Notice Date" is defined in Section 6.2 of the Receivables
          ----------------------                -----------
Purchase Agreement.

         "Repurchase Price" means the Repurchase Price specified in Section
          ----------------                                          -------
6.1(c) or 6.2(a), as the case may be, of the Receivables Purchase Agreement.
------    ------

         "Requirements of Law" for any Person means the certificate of
          -------------------
incorporation or articles of association and by-laws or other organizational or
governing documents of such Person, and any law, treaty, rule or regulation, or
order or determination of an arbitrator or Governmental Authority, in each case
applicable to or binding upon such Person or to which such Person is subject,
whether Federal, state or local (including usury laws, the Federal Truth in
Lending Act and Regulation Z and Regulation B of the Board of Governors of the
Federal Reserve System).

         "Responsible Officer" means, as to the Issuer, the Chairman or any Vice
          -------------------
Chairman of the Board of Directors or Trustees of the Administrator; the
Chairman or Vice Chairman of the Executive or Standing Committee of the Board of
Directors or Trustees of the Administrator; and the President, any Executive
Vice President, Senior Vice President, Vice President, any Assistant Vice
President, the Secretary, any Assistant Secretary, the Treasurer, any Assistant
Treasurer, the Cashier, any Assistant or Deputy Cashier, the Controller and any
Assistant Controller or any other officer of the Administrator customarily
performing functions similar to those

                                      -24-

<PAGE>

performed by any of the above-designated officers. The term "Responsible
Officer", when used herein with respect to any Person other than the Issuer,
means an officer or employee of such Person corresponding to any officer or
employee described in the preceding sentence.

         "RPA Closing Date" means December 31, 2001.
          ----------------

         "RPA Seller" means FCNB.
          ----------

         "Scheduled Trust Termination Date" means December 31, 2050.
          --------------------------------

         "Securities Act" means the Securities Act of 1933.
          --------------

         "Seller" shall mean (i) before the RPA Closing Date, FCNB, and (ii) on
          ------
and after the RPA Closing Date, First Consumers Credit Corporation, a Delaware
corporation.

         "Seller Amount" means, on any Determination Date, the Aggregate
          -------------
Principal Balance at the end of the day immediately prior to such Determination
Date, minus the Aggregate Collateral Amount at the end of such day.

         "Seller Certificate Supplement" shall have the meaning specified in
          -----------------------------
Section 3.4 of the Trust Agreement.
-----------

         "Seller Interest" means the interest of the Seller or its assigns in
          ---------------
the Issuer and the Receivables, which entitles the Seller or its assigns to
receive the various amounts specified in the Transaction Documents to be paid or
transferred to the holder(s) of the Seller Interest.

         "Seller Percentage" means, on any date of determination, when used with
          -----------------
respect to Principal Collections, Finance Charge Collections and Receivables in
Defaulted Accounts, the percentage equivalent of a fraction equal to 1.0, minus
                                                                          -----
the fraction calculated on such date with respect to such categories of
Receivables in accordance with the definition of Aggregate Allocation
Percentage; provided, however, that the Seller Percentage shall never be less
            --------  -------
than zero.

         "Series" means any series of Notes, which may include within any such
          ------
Series a Class or Classes of Notes subordinate to another such Class or Classes
of Notes.

         "Series Account" means, with respect to any Series, any of the accounts
          --------------
established and designated as such pursuant to the related Indenture Supplement.

                                      -25-

<PAGE>

         "Series Enhancement" means the rights and benefits provided to the
          ------------------
Issuer or the Noteholders of any Series or Class pursuant to any letter of
credit, surety bond, cash collateral account, collateral interest, spread
account, reserve account, cash collateral guaranty, insurance policy, tax
protection agreement, interest rate swap agreement, interest rate cap agreement,
cross support feature or other similar arrangement. The subordination of any
Series or Class to another Series or Class shall be deemed to be a Series
Enhancement.

         "Series Enhancer" means the Person or Persons providing any Series
          ---------------
Enhancement, other than (except to the extent otherwise provided with respect to
any Series in the Indenture Supplement for such Series) any account or deposits
therein or the Noteholders of any Series or Class which is subordinated to
another Series or Class.

         "Series Pay Out Event" is defined, with respect to any Series, in the
          --------------------
related Indenture Supplement.

         "Series Share" is defined in Section 8.4(h) of the Indenture.
          ------------                --------------

         "Series Termination Date" means, with respect to any Series, the
          -----------------------
termination date for such Series specified in the related Indenture Supplement.

         "Servicer" means initially FCNB, and thereafter any Person appointed as
          --------
successor as herein provided to service the Receivables.

         "Servicer Default" is defined in Section 7.1 of the Transfer and
          ----------------                -----------
Servicing Agreement.

         "Servicing Agreement" means (i) before the FCMT Termination Date, the
          -------------------
Pooling and Servicing Agreement, and (ii) on and after the FCMT Termination
Date, the Transfer and Servicing Agreement.

         "Servicing Fee Rate" means, with respect to any Series, the Series
          ------------------
servicing fee percentage specified in the related Indenture Supplement.

         "Servicing Officer" means any employee of the Servicer involved in, or
          -----------------
responsible for, the administration and servicing of the Receivables whose name
appears on a list of servicing officers furnished to the Indenture Trustee by
the Servicer, as such list may from time to time be amended.

         "Settlement Date" is defined in Section 3.4 of the Receivables Purchase
          ---------------                -----------
Agreement.

                                      -26-

<PAGE>

         "Settlement Statement" means a document substantially in the form of
          --------------------
Exhibit C to the Receivables Purchase Agreement.
---------

         "Shared Finance Charge Collections" means, with respect to any
          ---------------------------------
Distribution Date, the aggregate amount for all outstanding Series that the
related Indenture Supplements specify are to be treated as "Shared Finance
Charge Collections" for such Distribution Date.

         "Shared Principal Collections" is defined in Section 8.5 of the
          ----------------------------                -----------
Indenture.

         "Shortfall Amount" means, on any Determination Date, the amount, if
          ----------------
any, by which the Minimum Seller Amount exceeds the Seller Amount.

         "Special Fees" means Receivables consisting of fees which are not now
          ------------
but may from time to time be assessed on the Accounts.

         "Spiegel" means Spiegel, Inc., a Delaware corporation.
          -------

         "Standard & Poor's" means Standard & Poor's Ratings Services, or its
          -----------------
successor.

         "Subordinated Note" means a subordinated note of Seller substantially
          -----------------
in the form attached to Exhibit F to the Receivables Purchase Agreement.
                        ---------

         "Successor Servicer" is defined in Section 7.2(a) of the Transfer and
          ------------------                --------------
Servicing Agreement.

         "Supplemental Certificate" is defined in Section 3.4 of the Trust
          ------------------------
Agreement.

         "Supplemental Conveyance" means an instrument substantially in the form
          -----------------------
and upon the terms of Exhibit A to the Receivables Purchase Agreement.
                      ---------

         "Surviving Person" is defined in Section 3.10(a) of the Indenture.
          ----------------                ---------------

         "Tax Opinion" means, with respect to any action, an Opinion of Counsel
          -----------
to the effect that, for federal income tax purposes, (a) such action will not
adversely affect the tax characterization as debt of the Notes of any
outstanding Series or Class that were characterized as debt at the time of their
issuance, (b) such action will not cause the Issuer to be deemed to be an
association (or publicly traded partnership) taxable as a corporation and (c)
such action will not cause or constitute an event in which gain or loss would be
recognized by any Noteholder.

                                      -27-

<PAGE>

         "Termination Notice" is defined in Section 7.1 of the Transfer and
          ------------------                -----------
Servicing Agreement.

         "Transaction Documents" means the Master Indenture, Indenture
          ---------------------
Supplements, Transfer and Servicing Agreement, Trust Agreement, Administration
Agreement, and, until the FCMT Termination Date, the Pooling and Servicing
Agreement and the Collateral Series Supplement, and any other documents related
to this transaction.

         "Transfer Agent and Registrar" is defined in Section 2.5 of the
          ----------------------------
Indenture.

         "Transfer and Servicing Agreement" means the Transfer and Servicing
          --------------------------------
Agreement, dated as of March 1, 2001, and amended and restated as of December
31, 2001, among First Consumers Credit Corporation, FCNB and the Issuer.

         "Transfer Date" means the Business Day immediately preceding each
          -------------
Distribution Date or each Distribution Date.

         "Transfer Restriction Event" means any event that prevents FCNB from
          --------------------------
transferring Receivables to the Seller or prevents the Seller from transferring
Receivables to the Issuer.

         "Trust" means the First Consumers Credit Card Master Note Trust.
          -----

         "Trust Agreement" means the Trust Agreement relating to the Receivables
          ---------------
Trust, dated as of March 1, 2001 and amended and restated as of December 31,
2001, between First Consumers Credit Corporation and the Owner Trustee, as the
same may be amended, supplemented or otherwise modified from time to time.

         "Trust Assets" is defined in Section 2.1 of the Transfer and Servicing
          ------------                -----------
Agreement.

         "Trust Estate" means all right, title and interest of the Issuer in and
          ------------
to the property and rights assigned to the Issuer pursuant to Section 2.5 of the
                                                              -----------
Trust Agreement and Section 2.1 of the Transfer and Servicing Agreement, all
                    -----------
monies, investment property, instruments and other property on deposit from time
to time in the Collection Account, the Series Accounts and the Excess Funding
Account and all other property of the Issuer from time to time, including any
rights of the Owner Trustee and the Issuer pursuant to the Transaction
Documents.

         "Trust Indenture Act" or "TIA" means the Trust Indenture Act of 1939.
          -------------------      ---

                                      -28-

<PAGE>

         "Trust Pay Out Event" is defined, with respect to each Series, in
          -------------------
Section 5.1 of the Indenture.

         "Trust Termination Date" is defined in Section 8.1 of the Trust
          ----------------------
Agreement.

         "Trustee Officer" means, with respect to the Indenture Trustee any
          ---------------
officer assigned to the Corporate Trust Office, including any managing director,
vice president, assistant vice president, assistant treasurer, assistant
secretary or any other officer of the Indenture Trustee customarily performing
functions similar to those performed by any of the above designated officers and
having direct responsibility for the administration of the applicable
Transaction Documents, and also, with respect to a particular matter, any other
officer, to whom such matter is referred because of such officer's knowledge of
and familiarity with the particular subject.

         "UCC" means the Uniform Commercial Code, as in effect in any specified
          ---
jurisdiction.

                                      -29-<PAGE>

                                                                     Exhibit 4.2
                                                                     -----------

                        TRANSFER AND SERVICING AGREEMENT

                                      among

                       FIRST CONSUMERS CREDIT CORPORATION

                                     Seller,

                         FIRST CONSUMERS NATIONAL BANK,

                                    Servicer,

                                       and

                 FIRST CONSUMERS CREDIT CARD MASTER NOTE TRUST,

                                     Issuer,

                            Dated as of March 1, 2001
                  amended and restated as of December 31, 2001

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                         Page
<S>                                                                                                                      <C>
ARTICLE I     DEFINITIONS .............................................................................................    1
              Section 1.1.  Definitions ...............................................................................    1
              Section 1.2.  Other Definitional Provisions .............................................................    1
              Section 1.3.  Monthly Allocation of Finance Charge Receivables ..........................................    2

ARTICLE II    CONVEYANCE OF RECEIVABLES ...............................................................................    3
              Section 2.1.  Conveyance of Receivables .................................................................    3
              Section 2.2.  Acceptance by Issuer ......................................................................    5
              Section 2.3.  Representations and Warranties of Seller Relating to Seller ...............................    5
              Section 2.4   Representations and Warranties of Seller Relating to this Agreement and the Receivables ...    7
              Section 2.5.  Covenants of Seller .......................................................................   11
              Section 2.6.  Addition of Accounts ......................................................................   15
              Section 2.7.  Removal of Accounts .......................................................................   18
              Section 2.8.  Discount Option ...........................................................................   19

ARTICLE III   ADMINISTRATION AND SERVICING OF RECEIVABLES .............................................................   20
              Section 3.1.  Acceptance of Appointment and Other Matters Relating to the Servicer ......................   20
              Section 3.2.  Servicing Compensation ....................................................................   21
              Section 3.3.  Representations; Warranties and Covenants of the Servicer .................................   22
              Section 3.4.  Reports and Records for the Indenture Trustee; Bank Account Statements ....................   23
              Section 3.5.  Annual Servicer's Certificate .............................................................   24
              Section 3.6.  Annual Independent Public Accountants' Servicing Report ...................................   24
              Section 3.7.  Tax Treatment .............................................................................   25
              Section 3.8.  Notices to Seller .........................................................................   25
              Section 3.9.  Reports to the Commission .................................................................   25

ARTICLE IV    OTHER MATTERS RELATING TO SELLER ........................................................................   25
              Section 4.1.  Liability of Seller .......................................................................   25
              Section 4.2.  Merger or Consolidation of, or Assumption of the Obligations of, Seller etc. ..............   25
              Section 4.3.  Limitation on Liability of Seller .........................................................   27
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                                                 <C>
ARTICLE V      OTHER MATTERS RELATING TO THE SERVICER ..........................................................    27
               Section 5.1.   Liability of the Servicer ........................................................    27
               Section 5.2.   Merger or Consolidation of, or Assumption of the Obligations of, the Servicer ....    27
               Section 5.3.   Limitation on Liability of the Servicer and Others ...............................    28
               Section 5.4.   Indemnification of the Issuer and the Owner Trustee ..............................    28
               Section 5.5.   The Servicer Not to Resign .......................................................    29
               Section 5.6.   Access to Certain Documentation and Information Regarding the Receivables ........    29
               Section 5.7.   Delegation of Duties .............................................................    30
               Section 5.8.   Examination of Records ...........................................................    30

ARTICLE VI     INSOLVENCY EVENTS ...............................................................................    30
               Section 6.1.   Rights upon the Occurrence of an Insolvency Event ................................    30

ARTICLE VII    SERVICER DEFAULTS ...............................................................................    31
               Section 7.1.   Servicer Defaults ................................................................    31
               Section 7.2.   Indenture Trustee to Act; Appointment of Successor ...............................    32
               Section 7.3.   Notification to Noteholders ......................................................    34

ARTICLE VIII   TERMINATION .....................................................................................    34
               Section 8.1.   Termination of Agreement .........................................................    34

ARTICLE IX     MISCELLANEOUS PROVISIONS ........................................................................    35
               Section 9.1.   Amendment; Waiver of Past Defaults ...............................................    35
               Section 9.2.   Protection of Right, Title and Interest to Issuer ................................    37
               Section 9.3.   GOVERNING LAW ....................................................................    38
               Section 9.4.   Notices; Payments ................................................................    38
               Section 9.5.   Severability of Provisions .......................................................    38
               Section 9.6.   Further Assurances ...............................................................    39
               Section 9.7.   No Waiver; Cumulative Remedies ...................................................    39
               Section 9.8.   Counterparts .....................................................................    39
               Section 9.9.   Third-Party Beneficiaries ........................................................    39
               Section 9.10.  Actions by Noteholders ...........................................................    39
               Section 9.11.  Rule 144A Information ............................................................    39
               Section 9.12.  Merger and Integration ...........................................................    40
               Section 9.13.  No Bankruptcy Petition ...........................................................    40
               Section 9.14.  Rights of Indenture Trustee ......................................................    40
               Section 9.15.  Rights of the Owner Trustee ......................................................    40
</TABLE>

                                       ii

<PAGE>

<TABLE>
<S>                                                                                  <C>
EXHIBITS

EXHIBIT A    Form of Assignment of Receivables in Additional Accounts ............     A-1
EXHIBIT B    Form of Reassignment of Receivables in Removed Accounts .............     B-1
EXHIBIT C    Form of Monthly Servicer's Certificate ..............................     C-1
EXHIBIT D    Form of Annual Servicer's Certificate ...............................     D-1
EXHIBIT E    Form of Annual Independent Public Accountants' Servicing Report .....     E-1
EXHIBIT F-1  Form of Opinion of Counsel with Respect to Amendments ...............   F-1-1
EXHIBIT F-2  Form of Opinion of Counsel with Respect to Accounts .................   F-2-1
EXHIBIT F-3  Provisions to be Included in Annual Opinion of Counsel ..............   F-3-1

SCHEDULES

SCHEDULE 1   List of Accounts ....................................................     1-1
SCHEDULE 2   Additional Representations, Warranties and Covenants ................     2-1
</TABLE>

                                      iii

<PAGE>

         TRANSFER AND SERVICING AGREEMENT, dated as of March 1, 2001, as amended
and restated herein as of December 31, 2001 (this "Agreement") among FIRST
                                                   ---------
CONSUMERS CREDIT CORPORATION, a Delaware corporation, as Seller, FIRST CONSUMERS
NATIONAL BANK, a national banking association, as Servicer, and FIRST CONSUMERS
CREDIT CARD MASTER NOTE TRUST, a trust organized under the laws of the State of
Illinois, as Issuer.

         In consideration of the mutual agreements herein contained, each party
agrees as follows for the benefit of the other parties, the Noteholders and any
Series Enhancer to the extent provided herein, in the Indenture and in any
Indenture Supplement:

                                    ARTICLE I

                                   DEFINITIONS

         Section 1.1. Definitions. Capitalized terms used herein and not
                      -----------
otherwise defined herein are defined in Annex A to the Master Indenture, dated
                                        -------
as of the date hereof, between First Consumers Credit Card Master Note Trust and
The Bank of New York.

         Section 1.2. Other Definitional Provisions. All terms defined directly
                      -----------------------------
or by reference in this Agreement shall have the defined meanings when used in
any certificate or other document delivered pursuant hereto unless otherwise
defined therein. For purposes of this Agreement and all such certificates and
other documents, unless the context otherwise requires: (a) accounting terms not
otherwise defined in this Agreement, and accounting terms partly defined in this
Agreement to the extent not defined, shall have the respective meanings given to
them under generally accepted accounting principles; (b) terms defined in
Article 9 of the UCC as in effect in the applicable jurisdiction and not
otherwise defined in this Agreement are used as defined in that Article; (c) any
reference to each Rating Agency shall only apply to any specific rating agency
if such rating agency is then rating any outstanding Series; (d) references to
any amount as on deposit or outstanding on any particular date means such amount
at the close of business on such day; (e) the words "hereof," "herein" and
"hereunder" and words of similar import refer to this Agreement (or the
certificate or other document in which they are used) as a whole and not to any
particular provision of this Agreement (or such certificate or document); (f)
references to any Section, Schedule or Exhibit are references to Sections,
Schedules and Exhibits in or to this Agreement (or the certificate or other
document in which the reference is made), and references to any paragraph,
Section, clause or other subdivision within any Section or definition refer to
such paragraph, subsection, clause or other subdivision of such Section or
definition; (g) the term "including" means "including without limitation"; (h)
references to any law or regulation refer to that law or regulation as amended
from time to time and include any successor law or regulation; (i) references to
any Person include that Person's

                                       1

<PAGE>

successors and assigns; and (j) headings are for purposes of reference only and
shall not otherwise affect the meaning or interpretation of any provision
hereof.

         Section 1.3. Monthly Allocation of Finance Charge Receivables. The
                      ------------------------------------------------
amount of Finance Charge Receivables (excluding, in each case where such term is
used in this Section 1.3, Discount Option Receivables) in all Accounts shall be
             -----------
determined as follows:

         (a) At the close of business on each Cycle Billing Date for any Cycle
of which any Accounts are included in the Trust, the amount of Finance Charge
Receivables of all Accounts in such Cycle shall be equal to the result of (A)
the amount of Finance Charges charged to all Accounts in such Cycle on such date
minus (B) the amount of Finance Charge Receivables on all Accounts in such
Billing Cycle that have been charged off since the close of business on the
preceding Cycle Billing Date. As of the end of each Monthly Period, the amount
of Finance Charge Receivables for all Accounts shall equal (X) the sum of the
amounts calculated pursuant to the preceding sentence for each Cycle of which
Accounts are included in the Trust during that Monthly Period plus (Y) the
Carry-Over Finance Charge Amount.

         (b) For each Business Day in each Monthly Period, the amount of
Collections allocated to Finance Charge Receivables for all Accounts shall be
all Collections available for allocation on that Business Day up to an amount
equal to the quotient of the result determined pursuant to paragraph (a) above
as of the end of the immediately preceding Monthly Period divided by the number
of Business Days in such present Monthly Period; provided, however, that (A) the
                                                 --------  -------
amount of Collections allocated to Finance Charge Receivables for all Accounts
on the first Business Day of each Monthly Period shall equal the product of two
times such quotient, (B) subject to clause (C) below, the amount of Collections
allocated to Finance Charge Receivables for all Accounts on the last Business
Day of each Monthly Period shall equal zero and (C) to the extent that the total
Collections available for allocation on any Business Day (other than the last
Business Day of a Monthly Period) is less than the amount that is to be
allocated to Collections of Finance Charge Receivables on that Business Day,
then the deficit shall be added to the amount of Collections that will be
allocated to Finance Charge Receivables on the next Business Day.

         (c) If, at the close of business on the last Business Day of any
Monthly Period, the amount of Collections allocated to Finance Charge
Receivables for all Accounts during such Monthly Period is less than the amount
of Finance Charge Receivables for all Accounts calculated pursuant to paragraph
(a) as of the end of the next preceding Monthly Period, then such deficit shall
be the "Carry-Over Finance Charge Amount" and shall be added to the amount of
Finance Charge Receivables as of the end of the then current Monthly Period
pursuant to paragraph (a).

                                       2

<PAGE>

         Notwithstanding the foregoing, the Servicer may adopt a different
method of determining the amount of Finance Charge Receivables which in the good
faith judgment of the Servicer is designed to more accurately reflect the
portions of Receivables and Collections constituting Finance Charge Receivables.

                                   ARTICLE II

                            CONVEYANCE OF RECEIVABLES

         Section 2.1. Conveyance of Receivables. By execution of this Agreement,
                      -------------------------
Seller does hereby transfer, assign, set over and otherwise convey to the
Issuer, without recourse except as provided herein, all its right, title and
interest in, to and under (a) the Collateral Certificate, and (b) effective on
the FCMT Termination Date, the Receivables existing at the opening of business
on the FCMT Termination Date, and thereafter created from time to time until the
termination of the Issuer, all Collections and Recoveries allocable to the
Issuer as provided herein, the rights to receive certain amounts paid or payable
as Interchange (if and to the extent provided for in any Indenture Supplement),
all rights to security for any Receivables (including without limitation rights
to bank accounts or certificates of deposit pledged as collateral) and the right
to any Enhancement with respect to any Series, in each case together with all
monies due or to become due and all amounts received or receivable with respect
thereto, Transferred Assets acquired by Seller under the Receivables Purchase
Agreement, rights described in clause (a)(ii) of the definition of "Existing
                               --------------
Assets" in the Receivables Purchase Agreement, rights under the Receivables
Purchase Agreement relating to assets that have been transferred or contributed
under the Receivables Purchase Agreement (other than the right to acquire such
assets under Sections 2.1(a) and 2.1(b) thereof) and all proceeds thereof and
             ---------------     ------
Insurance Proceeds relating thereto. Such property, together with all monies and
other property credited to the Collection Account, the Series Accounts and the
Excess Funding Account (including any subaccounts of any such account), the
rights of the Issuer under this Agreement and the Trust Agreement and the right
to receive Recoveries shall constitute the assets of the Issuer (the "Trust
                                                                      -----
Assets"). The foregoing does not constitute and is not intended to result in the
-------
creation or assumption by the Issuer, the Owner Trustee, the Indenture Trustee
or any Noteholder of any obligation of the Seller, the Servicer or any other
Person in connection with the Accounts or the Receivables or under any agreement
or instrument relating thereto, including any obligation to Obligors, merchant
banks, merchants or clearance systems.

         On or prior to the Initial Closing Date, Seller shall deliver to the
Owner Trustee a registered certificate representing the Collateral Certificate.
On or prior to the FCMT Termination Date, Seller agrees to record and file, at
its own expense, financing statements (and continuation statements when
applicable) with respect to the Receivables and other Trust Assets conveyed by
Seller existing on the FCMT Termination Date and thereafter created meeting the
requirements of applicable state law in such manner and in such jurisdictions as
are necessary to perfect, and maintain

                                       3

<PAGE>

the perfection of, the transfer and assignment of its interest in such
Receivables and other Trust Assets to the Issuer, and to deliver a file stamped
copy of each such financing statement or other evidence of such filing to the
Owner Trustee as soon as practicable after the FCMT Termination Date, and (if
any additional filing is so necessary) as soon as practicable after the
applicable Addition Date, in the case of Receivables and other Trust Assets
arising in Additional Accounts. The Owner Trustee shall be under no obligation
whatsoever to file such financing or continuation statements or to make any
other filing under the applicable UCC in connection with such transfer and
assignment.

         Seller further agrees, at its own expense, on or prior to (x) the FCMT
Termination Date, (y) the applicable Addition Date, in the case of Additional
Accounts (other than Additional Accounts added pursuant to Section 2.6(e)), and
                                                           ---------------
(z) the applicable Removal Date, in the case of Removed Accounts, (a) to
indicate in the appropriate computer files that Receivables created (or
reassigned, in the case of Removed Accounts) in connection with the Accounts
have been conveyed to the Issuer pursuant to this Agreement (or conveyed to
Seller or its designee in accordance with Section 2.7, in the case of Removed
                                          -----------
Accounts) and (b) to deliver to the Owner Trustee a computer file or microfiche
list containing a true and complete list of all such Accounts specifying for
each such Account, as of the FCMT Termination Date, the applicable Addition Date
in the case of Additional Accounts, and the applicable Removal Date in the case
of Removed Accounts, its account number and, the aggregate amount outstanding in
such Account and the aggregate amount of Principal Receivables outstanding in
such Account. Each such file or list, as supplemented, from time to time, to
reflect Additional Accounts and Removed Accounts, shall be marked as Schedule 1
                                                                     ----------
to this Agreement and is hereby incorporated into and made a part of this
Agreement.

         If the arrangements with respect to the Receivables hereunder shall
constitute a loan and not a purchase and sale of such Receivables, it is the
intention of the parties hereto that this Agreement shall constitute a security
agreement under applicable law, and that Seller shall be deemed to have granted
to the Issuer a first priority perfected security interest in all of Seller's
right, title and interest, whether owned on the FCMT Termination Date or
thereafter acquired, in, to and under the Receivables and the other Trust Assets
conveyed by Seller, and all money, accounts, general intangibles, chattel paper,
instruments, documents, goods, investment property, deposit accounts,
certificates of deposit, letters of credit, and advices of credit consisting of,
arising from or related to the Trust Assets, to secure its obligations
hereunder.

         Seller and Servicer acknowledge that all instruments (including
certificates of deposit) and bank accounts the security interest in which has
been transferred to the Issuer hereby and which are maintained with Servicer or
of which Servicer has possession, shall be so maintained and held by Servicer on
behalf and for the benefit of the Issuer, in accordance with the terms of this
Agreement.

                                       4

<PAGE>

         Additionally, for purposes of perfecting the Issuer's security interest
in bank accounts pledged to Seller, which security interest Seller has
transferred to the Issuer hereunder, this Agreement constitutes and shall be
deemed (i) notice to Seller and Servicer by the Issuer of the Issuer's security
interest in such bank accounts, and (ii) Seller's and Servicer's acknowledgment
of and consent to the Issuer's notice and the Issuer's security interest in such
bank accounts.

         Section 2.2. Acceptance by Issuer.
                      --------------------
        (a) The Issuer hereby acknowledges its acceptance of all right, title
and interest to the property, now existing and hereafter created, conveyed to
the Issuer pursuant to Section 2.1. The Owner Trustee shall maintain a copy of
                       -----------
Schedule 1, as delivered from time to time, at its Corporate Trust Office.
----------

         (b) The Owner Trustee hereby agrees not to disclose to any Person any
of the account numbers or other information contained in the computer files or
microfiche lists marked as Schedule 1 and delivered to the Owner Trustee or the
                           ----------
Issuer, from time to time, except (i) to a Successor Servicer or as required by
a Requirement of Law applicable to the Owner Trustee, (ii) in connection with
the performance of the Owner Trustee's or the Issuer's duties hereunder, (iii)
to the Indenture Trustee in connection with its duties in enforcing the rights
of Noteholders or (iv) to bona fide creditors or potential creditors of the
Servicer or Seller for the limited purpose of enabling any such creditor to
identify Receivables or Accounts subject to this Agreement or the Receivables
Purchase Agreement. The Owner Trustee and the Issuer each agrees to take such
measures as shall be reasonably requested by Seller to protect and maintain the
security and confidentiality of such information and, in connection therewith,
shall allow Seller or its duly authorized representatives to inspect the Owner
Trustee's security and confidentiality arrangements as they specifically relate
to the administration of the Issuer from time to time during normal business
hours upon prior written notice. The Owner Trustee and the Issuer shall provide
Seller with notice five (5) Business Days prior to disclosure of any information
of the type described in this Section 2.2(b).
                              --------------

         Section 2.3. Representations  and Warranties of Seller  Relating to
                      ------------------------------------------------------
Seller.  Seller hereby  represents and warrants as of the Initial Closing Date
------
that:

         (a) Organization and Good Standing. Seller is a corporation duly
             ------------------------------
organized and validly existing in good standing under the laws of Delaware, and
has full corporate power, authority and legal right to own its properties and
conduct its business as such properties are presently owned and such business is
presently conducted, and to execute, deliver and perform its obligations under
this Agreement and the Receivables Purchase Agreement.

                                       5

<PAGE>

         (b) Due Qualification. Seller is not  required to qualify to do
             -----------------
business  as a foreign  corporation  in any state or to  obtain any licenses or
approvals in any jurisdiction in order to conduct its business.

         (c) Due Authorization. The execution and delivery of this Agreement and
             -----------------
the Receivables Purchase Agreement and the consummation of the transactions
provided for herein and therein have been duly authorized by Seller by all
necessary corporate action on the part of Seller.

         (d) No Conflict. The execution and delivery of this Agreement and the
             -----------
Receivables Purchase Agreement, the performance of the transactions contemplated
hereby and thereby and the fulfillment of the terms hereof and thereof will 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 or both) a default under,
any indenture, contract, agreement, mortgage, deed of trust, or other instrument
to which Seller is a party or by which it or any of its property is bound.

         (e) No Violation. The execution and delivery of this Agreement and the
             ------------
Receivables Purchase Agreement, the performance of the transactions contemplated
hereby and thereby and the fulfillment of the terms hereof and thereof will not
conflict with or violate any Requirements of Law applicable to Seller.

         (f) No Proceedings. There are no proceedings or investigations pending
             --------------
or, to the best knowledge of Seller, threatened against Seller, before any
court, regulatory body, administrative agency, or other tribunal or governmental
instrumentality (i) asserting the invalidity of this Agreement or the
Receivables Purchase Agreement, (ii) seeking to prevent the consummation of any
of the transactions contemplated by this Agreement or the Receivables Purchase
Agreement, (iii) seeking any determination or ruling that, in the reasonable
judgment of Seller, would materially and adversely affect the performance by
Seller of its obligations under this Agreement or the Receivables Purchase
Agreement, (iv) seeking any determination or ruling that would materially and
adversely affect the validity or enforceability of this Agreement or the
Receivables Purchase Agreement or (v) seeking to impose income taxes on the
Issuer (other than as a wholly-owned subsidiary of Seller).

         (g) Eligibility of Accounts. As of the Initial FCMT Cut-Off Date, each
             -----------------------
Account then existing was an Eligible Account.

         (h) All Consents Required. All approvals, authorizations, consents,
             ---------------------
orders or other actions of any Person or of any governmental body or official
required in connection with the execution and delivery of this Agreement, the
performance of the transactions contemplated by this Agreement, and the
fulfillment of or terms hereof, have been obtained.

                                       6

<PAGE>

         (i) Bulk Sales.  The  execution,  delivery and  performance of this
             ----------
Agreement do not require compliance with any "bulk sales" law by Seller.

         (j) Solvency. The transactions under this Agreement do not and will not
             --------
render Seller insolvent, nor have such transactions been entered into in
contemplation of the Seller's insolvency.

         (k) Selection  Procedures.  No selection  procedures  believed by
             ---------------------
Seller to be materially adverse to the interests of the Issuer or the
Noteholders were utilized by Seller in selecting the Accounts.

The representations and warranties set forth in this Section 2.3 shall survive
                                                     -----------
the transfer of the Trust Assets to the Issuer. Upon discovery by Seller, the
Servicer or the Owner Trustee of a breach of any of the foregoing
representations and warranties, the party discovering such breach shall give
prompt written notice to the others and any Enhancement Provider. Seller hereby
represents and warrants, with respect to any Series, as of the Closing Date with
respect to such Series, unless otherwise stated in the related Indenture
Supplement, that the representations and warranties of Seller set forth in this
Section 2.3 will be true and correct as of such date.
-----------

         Section 2.4 Representations and Warranties of Seller Relating to this
                     ---------------------------------------------------------
Agreement and the Receivables.
-----------------------------

         (a) Binding Obligation; Valid Transfer and Security Interest. Seller
             --------------------------------------------------------
hereby represents and warrants as of each date the representations are made or
deemed made in Sections 4.1(e), (j) and (k) of the Receivables Purchase
               ---------------  ---     ---
Agreement that such representations are true and correct. Seller hereby
represents and warrants to the Issuer that, as of the Initial Closing Date and,
with respect to any Series issued after the Initial Closing Date, unless
otherwise stated in the related Indenture Supplement, as of the Closing Date for
such Series:

             (i)  This Agreement constitutes a legal, valid and binding
         obligation of Seller, enforceable against Seller in accordance with its
         terms, except as such enforceability may be limited by Debtor Relief
         Laws and except as such enforceability may be limited by general
         principles of equity (whether considered in a suit at law or in
         equity).

             (ii) This Agreement constitutes either (A) a valid transfer to
         the Issuer of all right, title and interest of Seller in, to and under
         the Trust Assets, and such property will be held by the Issuer free and
         clear of any Lien of any Person claiming through or under Seller or its
         Affiliates, except for (w) the interests of the FCMT Trustee, the
         Indenture Trustee and the Noteholders, (x) Liens permitted under
         Section 2.5(b), (y) the Seller Interest and (z) Seller's right to
         --------------
         receive interest accruing on, and investment earnings in respect of,
         the Collection Account or any Series Account as provided in the
         Transaction

                                       7

<PAGE>

         Documents or (B) a grant of a security interest in such property to the
         Issuer, which is enforceable with respect to (i) upon execution and
         delivery of this Agreement, the Collateral Certificate, all monies due
         or to become due with respect thereto and other proceeds thereof, (ii)
         upon the FCMT Termination Date, the then existing Receivables, all
         monies due or to become due with respect thereto, the Collections,
         Recoveries and other proceeds thereof, and Insurance Proceeds relating
         thereto and (iii) thereafter, at the time new Receivables arise, with
         respect to such Receivables, all monies due or to become due with
         respect thereto, and the Collections, Recoveries and other proceeds
         thereof and Insurance Proceeds relating thereto. If this Agreement
         constitutes the grant of a security interest to the Issuer in such
         property, upon the filing of the financing statements described in
         Section 2.1 and in the case of the Receivables hereafter arising in the
         -----------
         Accounts and proceeds thereof and Insurance Proceeds relating to such
         Receivables, as the same arise, the Issuer shall have a first priority
         perfected security interest in such property, except for Liens
         permitted under Section 2.5(b). Neither Seller nor any Person claiming
                         -------------
         through or under Seller shall have any claim to or interest in the
         Collection Account, the Excess Funding Account or any Series Account,
         except for Seller's right to receive interest accruing on, and
         investment earnings in respect of, the Collection Account, the Excess
         Funding Account or any Series Account, as provided in the Transaction
         Documents, Seller's right to receive payments from the Collection
         Account or any Series Account in accordance with the provisions of the
         Indenture, and, if this Agreement constitutes the grant of a security
         interest in such property, except for the interest of Seller in such
         property as a debtor for purposes of the UCC as in effect in the
         applicable jurisdiction. Without limiting the generality of the
         foregoing, from and after the FCMT Termination Date, the
         representations and warranties specified in Schedule 2 are true and
                                                     ----------
         correct.

         (b) Eligibility of Receivables. Seller hereby represents and warrants
             ---------------------------
as of each date the representations are made or deemed made in Section 4.1(l) of
                                                               -------------
the Receivables Purchase Agreement (other than the first sentence thereof) that
such representations are true and correct. As of the FCMT Termination Date,
Seller agrees that all representations and warranties made by it with respect to
any Account or Receivable pursuant to Section 2.4 of the Pooling and Servicing
                                      -----------
Agreement shall be deemed for all purposes (including the reassignment
obligations under Section 2.4(e)) to have been made pursuant to this Agreement
                  --------------
as of the day when each was made or deemed made, as if this Agreement had been
in effect on that day. Thereafter, each day on which any new Receivable is
transferred by Seller to the Issuer, Seller shall be deemed to represent and
warrant to the Issuer that (i) each Receivable transferred on such day is an
Eligible Receivable, (ii) each Receivable transferred on such day has been
transferred to the Issuer free and clear of any Lien of any Person (other than
Liens permitted under Section 2.5(b), the Seller Interest and Seller's right to
                      -------------
receive interest accruing on, and investment earnings in respect of, the
Collection Account or any Series Account, as provided in the Transaction

                                       8

<PAGE>

Documents) and in compliance, in all material respects, with all Requirements of
Law applicable to Seller, (iii) with respect to each such Receivable, all
consents, licenses, approvals or authorizations of or registrations or
declarations with any Governmental Authority required to be obtained, effected
or given by Seller in connection with the transfer of such Receivable to the
Issuer have been duly obtained, effected or given and are in full force and
effect and (iv) the representations and warranties set forth in Section 2.4(a)
                                                                -------------
are true and correct with respect to each Receivable transferred on such day as
if made on such day.

         (c)  Notice of Breach. The representations and warranties set forth in
              ----------------
this Section 2.4 shall survive the transfer of the respective Receivables to the
     -----------
Issuer. Upon discovery by Seller, the Servicer or the Owner Trustee of a breach
of any of the foregoing representations and warranties, the party discovering
such breach shall give prompt written notice to the others and any Enhancement
Provider.

         (d)  Reassignment of Ineligible Receivables.
              --------------------------------------

         (i)  Reassignment of Receivables. In the event any representation or
              ---------------------------
warranty contained in Section 2.4(b) is not true and correct in any material
                      --------------
respect as of the date specified therein with respect to any Receivable or the
related Account unless cured within sixty (60) days (or such longer period, not
in excess of 120 days, as may be agreed to by the Indenture Trustee) after the
earliest to occur of the discovery thereof by Seller or receipt by Seller of
written notice thereof given by the Owner Trustee, the Indenture Trustee or the
Servicer, or the date on which the RPA Seller is required to make any
corresponding purchase under the Receivables Purchase Agreement, then Seller
shall accept reassignment of all Receivables in the related Account ("Ineligible
                                                                      ----------
Receivables") on the terms and conditions set forth in paragraph (ii) below.
-----------
Notwithstanding anything contained in this Section 2.4(d) to the contrary, in
                                           -------------
the event of breach of any representation and warranty set forth in Section
                                                                    -------
2.4(b) with respect to any Receivable having been conveyed to Seller or the
-----
Issuer free and clear of any Lien of any Person claiming through or under Seller
and its Affiliates and in compliance in all material respects with all
Requirements of Law applicable to RPA Seller or Seller, immediately upon the
earlier to occur of the discovery of such breach by Seller or receipt by Seller
of written notice of such breach given by the Owner Trustee, the Indenture
Trustee or the Servicer, Seller shall repurchase and the Owner Trustee shall
convey, without recourse, representation or warranty, all of the Owner Trustee's
right, title and interest in each Ineligible Receivable, and the Servicer shall
promptly notify the Rating Agencies of such event.

         (ii) Price of Reassignment. The Servicer shall deduct the portion of
              ---------------------
such Ineligible Receivables reassigned to the Seller which are Principal
Receivables from the aggregate amount of the Principal Receivables used to
calculate the Seller Amount and the various Allocation Percentages. If the
exclusion of an Ineligible Receivable from the calculation of the Seller Amount
would cause the Seller Amount to be less than the Minimum Seller Amount, then
Seller shall, on the date of

                                       9

<PAGE>

retransfer of such Ineligible Receivable, make a deposit in the Collection
Account (for allocation pursuant to the Indenture) in immediately available
funds in an amount equal to the Shortfall Amount to the extent Seller has
received such funds from RPA Seller under the Receivables Purchase Agreement,
and, if Seller has not received such funds, to the extent Seller has funds
available for such purpose after amounts payable to Securityholders (as defined
in the Receivables Purchase Agreement) have been paid in full. The amounts so
deposited are to be treated for all purposes hereof as Collections on such
Ineligible Receivables.

         Upon reassignment of any Ineligible Receivable, the Issuer shall
automatically and without further action be deemed to transfer, assign, set over
and otherwise convey to Seller or its designee, without recourse, representation
or warranty, all the right, title and interest of the Issuer in and to such
Ineligible Receivable, all Recoveries related thereto, all monies and amounts
due or to become due and all proceeds thereof and such reassigned Ineligible
Receivable shall be treated by the Issuer as collected in full as of the date on
which it was transferred. The obligation of Seller to accept reassignment of any
Ineligible Receivables conveyed to the Issuer by Seller, and to make the
deposits, if any, required to be made to the Collection Account as provided in
this Section, shall constitute the sole remedy respecting the event giving rise
to such obligation available to the Issuer, the Noteholders (or the Owner
Trustee on behalf of the Noteholders) or any Series Enhancer. The Issuer shall
execute such documents and instruments of transfer or assignment and take such
other actions as shall reasonably be requested and provided by the Seller to
effect the conveyance of such Ineligible Receivables pursuant to this Section
                                                                      -------
2.4(d), but only upon receipt of an Officer's Certificate from Seller that
-----
states that all conditions set forth in Section 2.5 have been satisfied. Each
                                        -----------
party hereto agrees that the failure by the Seller to make the deposit in
accordance with this Section 2.4(d) shall not give rise to any claim against the
                     -------------
Seller.

         (e) Reassignment of Issuer Portfolio. If any representation or warranty
             --------------------------------
of a Seller set forth in Section 2.4(a) is not true and correct in any material
                         -------------
respect and such breach has a material adverse effect on the Receivables or the
availability of the proceeds thereof to the Issuer (which determination shall be
made without regard to whether funds are then available pursuant to any Series
Enhancement), then either the Owner Trustee, the Indenture Trustee or the
Holders of Notes holding not less than 50% of the aggregate principal amount of
all Outstanding Notes, by notice then given to Seller and the Servicer (and to
the Owner Trustee and Indenture Trustee if given by the Noteholders), may direct
Seller to accept a reassignment of the Receivables conveyed to the Issuer by
Seller if such breach and any material adverse effect caused by such breach is
not cured within sixty (60) days of such notice (or within such longer period,
not in excess of 120 days, as may be specified in such notice), and upon those
conditions Seller shall be obligated to accept such reassignment on the terms
set forth below; provided, however, that the Receivables will not be reassigned
                 --------  -------
to Seller if, on any day prior to the end of such 60-day or longer period (i)
the relevant representation and warranty shall be true and correct in

                                       10

<PAGE>

all material respects as if made on such day and (ii) Seller shall have
delivered to the Owner Trustee a certificate of an authorized officer describing
the nature of such breach and the manner in which the relevant representation
and warranty has become true and correct.

         Seller shall deposit in the Collection Account in immediately available
funds not later than 1:00 p.m., New York City time, on the Transfer Date for the
first Distribution Date following the Monthly Period in which such reassignment
obligation arises, in payment for such reassignment, an amount equal to the
deposit amount for the reassignment to the extent Seller has received such funds
from RPA Seller under the Receivables Purchase Agreement, and, if Seller has not
received such funds, to the extent Seller has funds available for such purpose
after amounts payable to Securityholders (as defined in the Receivables Purchase
Agreement) have been paid in full. The deposit amount for such reassignment will
be equal to the sum of the amounts specified therefor with respect to each
outstanding Series in the related Indenture Supplement. Notwithstanding anything
to the contrary in this Agreement, such amounts shall be distributed to the
Noteholders on such Distribution Date in accordance with the terms of each
Indenture Supplement. If the Owner Trustee, the Indenture Trustee or the
Noteholders give notice directing the Seller to accept a reassignment of the
Receivables as provided above, the obligation of Seller to accept such
reassignment pursuant to this Section 2.4(e) and to make the deposit required to
                              -------------
be made to the Collection Account as provided in this paragraph shall constitute
the sole remedy respecting an event of the type specified in the first sentence
of this Section 2.4(e) available to the Noteholders (or the Owner Trustee or
        -------------
Indenture Trustee on behalf of the Noteholders) or any Series Enhancer. Upon
reassignment of the Receivables on such Distribution Date, the Issuer shall
automatically and without further action be deemed to sell, transfer, assign,
set-over and otherwise convey to the Seller, without recourse, representation or
warranty, all the right, title and interest of the Issuer in and to the
Receivables and Recoveries allocable to the Issuer, and all monies and amounts
due or to become due with respect thereto and all proceeds thereof. The Issuer
shall execute such documents and instruments of transfer or assignment and take
such other actions as shall reasonably be requested by the Seller to effect the
conveyance of such property pursuant to this Section. Each party hereto agrees
that the failure by the Seller to make the deposit in accordance with this
Section 2.4(e) shall not give rise to any claim against the Seller.
-------------

         (f) Seller will not add additional RPA Seller parties to the
Receivables Purchase Agreement, and not become a party to a new receivables
purchase agreement with any party other than FCNB, without first satisfying the
Rating Agency Condition.

         (g) Seller will be adequately capitalized to engage in the transactions
contemplated by its Certificate of Incorporation.

                                       11

<PAGE>

         Section 2.5. Covenants of Seller. Seller hereby covenants that:
                      -------------------

         (a) Receivables to be Accounts. Seller will take no action to cause any
             --------------------------
Receivable to be characterized as anything other than an "account" (as defined
in the UCC as in effect in the applicable jurisdiction). Each Receivable shall
be payable pursuant to a contract which does not create a Lien on any goods
purchased thereunder.

         (b) Security Interests. Except for the transfers hereunder and under
             ------------------
the Transfer and Servicing Agreement, Seller will not sell, pledge, assign or
transfer to any other Person, or grant, create, incur, assume or suffer to exist
any Lien on any Receivable, whether now existing or hereafter transferred to the
Issuer, or any interest therein. Seller will immediately notify the Owner
Trustee of the existence of any Lien on any Receivable; and Seller shall defend
the right, title and interest of the Issuer in, to and under the Receivables,
whether now existing or hereafter transferred to the Issuer, against all claims
of third parties; provided, however, that nothing in this Section 2.5(b) shall
                  --------  -------                       -------------
prevent or be deemed to prohibit Seller from suffering to exist upon any of the
Receivables any Liens for state, municipal or other local taxes if such taxes
shall not at the time be due and payable or if Seller shall currently be
contesting the validity thereof in good faith by appropriate proceedings and
shall have set aside on its books adequate reserves with respect thereto;
provided further, however, that nothing in this Section 2.5(b) shall prevent or
-------- -------  -------                       --------------
be deemed to prohibit Seller from granting a participation interest in the
Seller Interest.

         (c) Account Allocations. If Seller is unable for any reason to transfer
             -------------------
Receivables to the Issuer in accordance with the provisions of this Agreement
(including by reason of the occurrence of an Insolvency Event) then Seller
agrees that, solely for purposes of payments under this Agreement, it shall in
any such event allocate, after the occurrence of such event, payments on each
Account with respect to the principal balance of such Account first to the
oldest principal balance of such Account (it being understood that the foregoing
allocation does not affect, with respect to any obligor, the priority of
application of cardholder payments provided for in the related Cardholder
Agreement(s)) and to have such payments applied as Collections in accordance
with the Indenture. The parties hereto agree that Finance Charge Receivables,
whenever created, accrued in respect of Principal Receivables which have been
conveyed to the Issuer, or which would have been conveyed to the Issuer but for
the above described inability to transfer such Receivables, shall continue to be
a part of the Issuer notwithstanding any cessation of the transfer of additional
Principal Receivables to the Issuer and Collections with respect thereto shall
continue to be allocated and paid in accordance with the Indenture.

         (d) Delivery of Collections. Seller agrees to pay to the Servicer (if
             -----------------------
the Servicer is not then First Consumers National Bank) promptly (but in no
event later than two Business Days after receipt) all Collections received by
Seller in respect of the Receivables.

                                       12

<PAGE>

         (e) Finance Charges and Other Fees. Seller agrees that, except as
             ------------------------------
otherwise required by any Requirement of Law or as is deemed by Seller to be
advisable for its MasterCard and VISA programs based on a good faith assessment
by Seller of the various factors impacting the use of its MasterCard and VISA
cards, Seller shall not permit FCNB to reduce at any time (i) the Finance
Charges assessed in respect of any Accounts, or (ii) any other fees charged on
any of the Accounts if, as a result of such reduction, FCNB's reasonable
expectation of the Portfolio Yield in respect of any Series as of such date
would be less than the current Base Rate applicable to such Series.

         (f) Cardholder Agreements and Cardholder Guidelines. Seller agrees to
             -----------------------------------------------
comply with and perform its obligations under the Cardholder Agreements relating
to the Accounts and the Cardholder Guidelines, except insofar as any failure so
to comply or conform would not materially and adversely affect the rights of the
Issuer the Noteholders under the Transaction Documents. In that regard, except
as aforesaid, and so long as such changes are made applicable to the comparable
segments of those MasterCard and VISA accounts owned and serviced by the
Servicer which have characteristics the same as, or substantially similar to,
the Accounts which are subject hereto (if any), Seller shall be free to change
the terms and provisions of such Cardholder Agreements or the Cardholder
Guidelines in any respect (including, without limitation, the calculation of the
amount, or the timing, of charge offs). FCNB shall provide to each Rating Agency
written notice of any such change that (i) lowers the periodic finance charge
rate used to calculate Finance Charges on any Account or changes the minimum
monthly payment applicable to any Account; (2) changes any periodic finance
charge rate used to calculate Finance Charges on any Account from a floating
rate to a fixed rate or from a fixed rate to a floating rate; (3) reduces any
Cardholder Fees, Cash Advance Fees or other fees applicable to any Account or
(4) changes the calculation of the amount, or the timing, of charge offs.

         (g) Sale Treatment.  Seller agrees to treat the conveyance of
             --------------
Receivables hereunder as a sale for accounting purposes.

         (h) Compliance with Law. Seller hereby agrees to comply in all material
             -------------------
respects with all Requirements of Law applicable to Seller.

         (i) Activities of Seller. Seller shall not engage in any business or
             --------------------
activity of any kind or enter into any transaction or indenture, mortgage,
instrument, agreement, contract, lease or other undertaking which is not
directly related to the transactions contemplated and authorized by the
Transaction Documents or which is otherwise a Permitted Transaction.

         (j) Indebtedness.  Seller shall not create, incur, assume or suffer to
             ------------
exist any Indebtedness or other liability whatsoever, except (i) owing to the
Issuer under this Agreement or the Receivables Purchase obligations incurred or
Agreement,

                                       13

<PAGE>

(ii) liabilities incident to the maintenance of its corporate existence in good
standing and the ownership of the Receivables, (iii) obligations incident to a
Permitted Transaction or (iv) obligations to FCNB or Spiegel evidenced by a
Subordinated Note.

         (k) Guarantees. Seller shall not become or remain liable, directly or
             ----------
contingently, in connection with any Indebtedness or other liability of any
other Person, whether by guarantee, endorsement (other than endorsements of
negotiable instruments for deposit or collection in the ordinary course of
business), agreement to purchase or repurchase, agreement to supply or advance
funds, or otherwise except incident to a Permitted Transaction.

         (l) Investments. Seller shall not make or suffer to exist any loans or
             -----------
advances to, or extend any credit to, or make any investments (by way of
transfer of property, contributions to capital, purchase of stock or securities
or evidences of indebtedness, acquisition of the business or assets, or
otherwise) in, any Person except (i) for purchases of Receivables pursuant to
the Receivables Purchase Agreement, (ii) for investments in Permitted
Investments in accordance with the terms of this Agreement or (iii) pursuant to
a Permitted Transaction.

         (m) Distributions. Seller shall not declare or pay, directly or
             -------------
indirectly, any dividend or make any other distribution (whether in cash or
other property) with respect to the profits, assets or capital of Seller or any
Person's interest therein, or purchase, redeem or otherwise acquire for value
any of its capital stock now or hereafter outstanding, except that so long as no
Event of Default or Pay Out Event has occurred and is continuing and no Event of
Default or Pay Out Event would occur as a result thereof or after giving effect
thereto, Seller may declare and pay dividends on its capital stock.

         (n) Agreements. Seller shall not become a party to, or permit any of
             ----------
its properties to be bound by, any indenture, mortgage, instrument, contract,
agreement, lease or other undertaking, except the Transaction Documents and
except incidental to a Permitted Transaction or amend or modify the provisions
of its Certificate of Incorporation or issue any power of attorney except to the
Owner Trustee or to the Servicer.

         (o) Receivables  Purchase Agreement.  Seller shall not give any consent
             -------------------------------
to FCNB under the Receivables  Purchase Agreement unless the Rating Agency
Condition is satisfied with respect thereto.

         (p) Separate Corporate Existence. Seller shall:
             ----------------------------

             (i) Maintain its own deposit account or accounts, separate from
         those of any Affiliate, with commercial banking institutions. The funds
         of

                                       14

<PAGE>

         Seller will not be diverted to any other Person or for other than
         corporate uses of Seller except for dividends allowed under Section
                                                                     -------
         2.5(m).
         ------

                  (ii)   Ensure that, to the extent that it shares the same
         officers or other employees as any of its stockholders or Affiliates,
         the salaries of and the expenses related to providing benefits to such
         officers and other employees shall be fairly allocated among such
         entities, and each such entity shall bear its fair share of the salary
         and benefit costs associated with all such common officers and
         employees.

                  (iii)  Ensure that, to the extent that it jointly contracts
         with any of its stockholders or Affiliates to do business with vendors
         or service providers or to share overhead expenses, the costs incurred
         in so doing shall be allocated fairly among such entities, and each
         such entity shall bear its fair share of such costs. To the extent that
         Seller contracts or does business with vendors or service providers
         where the goods and services provided are partially for the benefit of
         any other Person, the costs incurred in so doing shall be fairly
         allocated to or among such entities for whose benefit the goods and
         services are provided, and each such entity shall bear its fair share
         of such costs. All material transactions (other than this Agreement and
         the Receivables Purchase Agreement) between Seller and any of its
         Affiliates shall be only on an arm's length basis.

                  (iv)   Maintain a principal executive and administrative
         office through which its business is conducted separate from those of
         its Affiliates. To the extent that Seller and any of its stockholders
         or Affiliates have offices in the same location, there shall be a fair
         and appropriate allocation of overhead costs among them, and each such
         entity shall bear its fair share of such expenses.

                  (v)    Conduct its affairs strictly in accordance with its
         Certificate of Incorporation and observe all necessary, appropriate and
         customary corporate formalities, including, but not limited to, holding
         all regular and special stockholders' and directors' meetings
         appropriate to authorize all corporate action, keeping separate and
         accurate minutes of its meetings, passing all resolutions or consents
         necessary to authorize actions taken or to be taken, and maintaining
         accurate and separate books, records and accounts, including, but not
         limited to, payroll and intercompany transaction accounts.

                  (vi)   Conduct its own business in its own name.

                  (vii)  Use separate stationary, invoices and checks.

                  (viii) Hold itself out as a separate entity.

                                       15

<PAGE>

         (q) Location of Records. Seller (i) shall not move outside the State of
             -------------------
Delaware the location of its chief executive office without 45 days' prior
written notice to the Owner Trustee and (ii) will promptly take all actions
required (including but not limited to all filings and other acts necessary or
advisable under the UCC of each applicable jurisdiction) in order to continue
the first priority perfected ownership interest of the Noteholders in all
Receivables now owned or hereunder created. Seller will give the Owner Trustee
prompt notice of a change within the State of Delaware of the location of its
chief executive office.

         Section 2.6. Addition of Accounts.
                      --------------------

         (a) If, on any day after the FCMT Termination Date, the Aggregate
Principal Balance is less than the Minimum Aggregate Principal Balance, either
Seller or the Servicer (whichever shall first become aware of same) promptly
shall give the Owner Trustee written notice thereof, and as soon as practicable
(but in no event later than 10 days thereafter) Seller shall designate
additional Eligible Accounts ("Additional Accounts") to be included as Accounts
                               -------------------
and shall transfer the Receivables in such Additional Accounts to the Issuer, in
a sufficient amount so that the Aggregate Principal Balance on such day would
have, if the Receivables from such Additional Accounts had been transferred to
the Issuer on or prior to such day, at least equaled the Minimum Aggregate
Principal Balance.

         (b) In addition to its obligation under Section 2.6(a), Seller may, but
                                                 --------------
shall not be obligated to, from time to time, designate Additional Accounts to
be included as Accounts, so long as after giving effect to such addition not
more than 20% of the Receivables, by outstanding balance, will be 30 or more
days delinquent (and for this purpose, Receivables in an Account shall be
considered delinquent if less than 100% of a required payment was received).

         (c) Seller agrees that any Receivables from Additional Accounts shall
be transferred by Seller to the Issuer under Section 2.6(a), (b) or (e) upon and
                                             --------------  ---    ---
subject to the following conditions:

             (i)  On or before the fifth Business Day (the "Notice Date")
                                                            -----------
         prior to the Addition Date in respect of Additional Accounts added
         pursuant to Section 2.6(a) or (b), Seller shall give the Owner Trustee
         and the Servicer (if a Person other than Seller) written notice that
         such Additional Accounts will be included and specifying the
         approximate aggregate amount of the Receivables to be transferred;

             (ii) Seller (A) shall transfer to the Issuer Receivables only
         in Eligible Accounts, and (B) shall, if such designation of Additional
         Accounts is made pursuant to Section 2.6(b) or (e) and if the addition
                                      --------------    ---
         of such Additional Accounts

                                       16

<PAGE>

                        (1) would cause the quotient (the "Annual Quotient")
                                                           ---------------
                  of (x) the sum of the Annual Account Additions after giving
                  effect to such addition, plus the related Base Amount, divided
                  by (y) the related Base Amount to exceed 1.20, or

                        (2) would cause the quotient (the "Quarterly
                                                           ---------
                  Quotient") of (x) the sum of the Quarterly Account Additions
                  --------
                  after giving effect to such addition plus the related Base
                  Amount divided by (y) the related Base Amount to exceed 1.15;

         in either case, deliver a letter from each Rating Agency to the
         Indenture Trustee by the Addition Date confirming that the Rating
         Agency Condition has been satisfied with respect to the addition of
         such Additional Accounts;

                  (iii) On or prior to the Addition Date, in respect of
         Additional Accounts added pursuant to Section 2.6(a) or (b), Seller
                                               --------------    ---
         shall have delivered to the Owner Trustee a written Assignment
         Agreement (including an acceptance by the Owner Trustee on behalf of
         the Issuer for the benefit of the Noteholders) in substantially the
         form of Exhibit A (the "Assignment Agreement") and shall have indicated
                 ---------       --------------------
         in its books and records, including the computer files of the
         Receivables, that the Receivables created in connection with the
         Additional Accounts have been transferred by Seller to the Issuer; and
         shall have delivered to the Owner Trustee a computer file or microfiche
         list containing a true and complete list of all Additional Accounts
         identified by account number, and the aggregate amount of the
         Receivables and the aggregate amount of Principal Receivables in such
         Additional Accounts, as of the Addition Date in respect of Additional
         Accounts added pursuant to Section 2.6(a) or (b), which computer file
                                    --------------    ---
         or microfiche list shall be marked as Schedule 1 to the Assignment
                                               ----------
         Agreement, delivered to the Owner Trustee as confidential and
         proprietary, shall be as of the date of such Assignment Agreement and
         incorporated into and made a part of such Assignment Agreement and this
         Agreement;

                  (iv)  Seller shall be deemed to represent and warrant that (x)
         each Additional Account is, as of the Addition Date, an Eligible
         Account, (y) no selection procedures reasonably believed by Seller to
         be materially adverse to the interests of the Noteholders were utilized
         in selecting the Additional Accounts from the available Eligible
         Accounts, and (z) as of the Addition Date, Seller is not insolvent and
         will not be rendered insolvent by adding any such Additional Account;

                  (v)   Seller shall be deemed to represent and warrant that, as
         of the Addition Date, the representations and warranties set out in
         Schedule 2 are correct; and, without limiting the generality of the
         ----------
         foregoing, the Assignment Agreement constitutes either (x) a valid
         transfer to the Issuer of all right, title

                                       17

<PAGE>

         and interest of Seller in, to and under the Receivables then existing
         and thereafter arising in respect of the Additional Accounts, all
         monies due or to become due with respect thereto (including all Finance
         Charge Receivables), and all proceeds of such Receivables and Insurance
         Proceeds relating thereto, and such property will be owned by the
         Issuer free and clear of any Lien of any Person, except for (i) Liens
         permitted under Section 2.5(b), (ii) the Seller Interest and (iii)
                         --------------
         Seller's right to receive interest accruing on, and investment earnings
         in respect of, the Collection Account or any Series Account, as
         provided in this Agreement and any Indenture Supplement, or (y) a grant
         of a security interest in such property to the Issuer, which is
         enforceable with respect to then existing Receivables of the Additional
         Accounts, all monies due or to become due with respect thereto, the
         proceeds thereof and Recoveries and Insurance Proceeds relating thereto
         upon the transfer of such Receivables to the Issuer, and which will be
         enforceable with respect to the Receivables thereafter transferred in
         respect of Additional Accounts, the proceeds thereof and Insurance
         Proceeds relating thereto upon such transfer; and (z) if the Assignment
         Agreement constitutes the grant of a security interest to the Issuer in
         such property, upon the filing of a financing statement as described in
         Section 2.1 with respect to such Additional Accounts and in the case of
         -----------
         the Receivables of Additional Accounts thereafter transferred and the
         proceeds thereof, and Insurance Proceeds relating to such Receivables,
         upon such transfer, the Issuer shall have a first priority perfected
         security interest in such property, except for Liens permitted under
         Section 2.5(b), the Seller Interest and Seller's right to receive
         --------------
         interest accruing on, and investment earnings in respect of, the
         Collection Account or any Series Account, as provided in this Agreement
         and any Indenture Supplement;

             (vi)  Seller shall, on the Addition Date for Additional Accounts
         added pursuant to Section 2.6(a) or (b), deliver a certificate of a
                           --------------    ---
         Vice President or more senior officer confirming the items set forth in
         paragraphs (ii), (iii), (iv) and (v) above; and
                    ----  -----  ----     ---

             (vii) Seller shall, on the Addition Date for Additional Accounts
         added pursuant to Section 2.6(a) or (b), deliver an Opinion of Counsel
                           --------------    ---
         with respect to the Receivables in the Additional Accounts to the Owner
         Trustee substantially in the form of Exhibit F-2, and which shall be
                                              -----------
         reasonably acceptable to the Rating Agencies.

         (d) Seller shall provide to each Rating Agency and to each Enhancement
Provider prior written notice each time Additional Accounts are added pursuant
to Section 2.6(a) or (b).
   --------------    ---

         (e) In addition to the occasional designation of Additional Accounts as
required or permitted pursuant to Sections 2.6(a) and (b), Seller agrees that
                                  ---------------     ---
each new MasterCard or VISA account originated in the normal course of FCNB's
business

                                       18

<PAGE>

after the FCMT Termination Date, where the Receivables with respect to such
accounts are purchased by Seller pursuant to the Receivables Purchase Agreement,
shall automatically be included as an Account (and the Trust Assets arising
thereunder automatically transferred to the Issuer) effective on the date on
which such account is created; provided, however, that such automatic inclusion
                               --------  -------
and transfer shall not occur with respect to any such account if: (i) such
account does not qualify as an Eligible Account, (ii) the transfer to the Issuer
of the Receivables in such Account, if such Accounts had been designated by
Seller pursuant to Section 2.6(b), would have caused the limitations set forth
                   --------------
in Section 2.6(c)(ii) to be exceeded (unless there shall have been delivered to
   ------------------
the Indenture Trustee a letter from each Rating Agency confirming the Rating
Agency Condition has been satisfied with respect to the addition of such
Additional Account), or (iii) Seller otherwise designates such account as an
account which is not to be included as an Account pursuant to this Section
                                                                   -------
2.6(e). On or before the fifth Business Day of each month next succeeding a
------
calendar month in which Accounts were included pursuant to the preceding
sentence, Seller shall indicate in its computer files of the receivables that
the Receivables created in connection with such included Accounts have been
transferred to the Issuer. Seller, at its option, may, by providing written
notice to the Owner Trustee and the Servicer, terminate or suspend the inclusion
of Additional Accounts added pursuant to Section 2.6(e) at any time.
                                         --------------

         Section 2.7. Removal of Accounts.
                      -------------------

         (a) Subject to the conditions set forth below, after the FCMT
Termination Date, Seller may designate from time to time Accounts no longer to
be designated for inclusion in the Issuer (the "Removed Accounts"); provided,
                                                ----------------    --------
however, that Seller shall not make more than one such designation in any
-------
Monthly Period. On or before the fifth Business Day (the "Removal Notice Date")
                                                          -------------------
prior to the date on which Removed Accounts shall be designated (the "Removal
                                                                      -------
Date"), Seller shall give the Owner Trustee, the Servicer and each Enhancement
----
Provider written notice that the Receivables from such Removed Accounts are to
be retransferred to Seller.

         (b) Seller shall be permitted to designate and require retransfer to it
of the Receivables from Removed Accounts only upon satisfaction of the following
conditions:

             (i)  If the Accounts to be removed have outstanding
         Receivables, Seller shall satisfy the Rating Agency Condition with
         respect thereto by such Removal Date;

             (ii) on each Removal Date, the Owner Trustee shall deliver to
         Seller a written Reassignment Agreement in substantially the form of
         Exhibit B (the "Reassignment Agreement") prepared by Seller, and Seller
         ---------       ----------------------
         shall deliver to the Owner Trustee a computer file, microfiche or
         written list containing a true and complete schedule identifying all
         Removed Accounts

                                       19

<PAGE>

         specifying for each such Removed Account, as of the Removal Notice
         Date, its account number and the Receivable balance thereof. Such
         computer file, microfiche or written list shall be as of the date of
         such Reassignment Agreement incorporated into and made a part of this
         Agreement;

                  (iii) Seller shall represent and warrant as of each Removal
         Date that (A) the list of Removed Accounts, as of the Removal Notice
         Date, complies in all material respects with the requirements of (ii)
         above; (B) Accounts (or administratively convenient groups of Accounts,
         such as billing cycles) were chosen for removal randomly or otherwise
         not on a basis intended to select particular accounts or groups of
         accounts for any reason other than administrative convenience, and no
         selection procedure used by Seller which is adverse to the interests of
         the Noteholders was utilized in selecting the Removed Accounts; and (C)
         as of the Removal Notice Date and as of the Removal Date, Seller is not
         insolvent and such removal was not made in contemplation of the
         Seller's insolvency;

                  (iv)  The removal of any Receivables of any Removed Accounts
         on any Removal Date shall not, in the reasonable belief of Seller,
         cause a Pay Out Event to occur, or an event which with notice or lapse
         of time or both would constitute a Pay Out Event;

                  (v)   The Aggregate  Principal Balance shall not be less than
         the Minimum Aggregate Principal Balance after giving effect to such
         removal;

                  (vi)  Seller shall have delivered to the Owner Trustee and to
         each Enhancement Provider a certificate of an officer of Seller
         confirming the items set forth in (i) through (v) above. The Owner
         Trustee may conclusively rely on such certificate, shall have no duty
         to make inquiries with regard to the matters set forth therein and
         shall incur no liability in so relying; and

                  (vii) such other conditions and restrictions as may at any
         time be specified in an Officer's Certificate of the Seller delivered
         to the Owner Trustee shall have been satisfied, it being understood
         that (i) no such additional conditions or restrictions may conflict
         with or override any of the conditions and restrictions specified
         above, and (ii) upon delivery of such an Officer's Certificate to the
         Owner Trustee, the additional conditions and restrictions specified
         therein shall be deemed to be incorporated by reference into and become
         a part of this Agreement.

         Upon satisfaction of the above conditions, the Owner Trustee shall
execute and deliver the Reassignment Agreement to Seller, and the Receivables
from the Removed Accounts shall no longer constitute a part of the Issuer.

                                       20

<PAGE>

         (d) On and after the FCMT Termination Date, on the date on which an
Account becomes a Defaulted Account, the Trust shall automatically and without
further action or consideration be deemed to transfer, set over, and otherwise
convey to the Seller, without recourse, representation or warranty, all the
right, title and interest of the Trust in and to the Receivables in such
Defaulted Account, all monies due or to become due with respect thereto, all
proceeds of such Receivables allocable to the Trust with respect to such
Receivable, excluding Recoveries relating thereto, which shall remain a part of
the Trust Assets.

         Section 2.8. Discount Option. (a) Seller shall have the option to
                      ---------------
designate at any time and from time to time a percentage or percentages, which
may be a fixed percentage or a variable percentage based on a formula (the
"Discount Percentage"), of all or any specified portion of Principal Receivables
 -------------------
created after the Discount Option Date to be treated as Finance Charge
Receivables ("Discount Option Receivables"). Seller shall also have the option
              ---------------------------
of reducing or withdrawing the Discount Percentage, at any time and from time to
time, on and after such Discount Option Date. Seller shall provide to the
Servicer, the Owner Trustee and any Rating Agency 30 days' prior written notice
of the Discount Option Date, and such designation shall become effective on the
Discount Option Date (i) unless such designation in the reasonable belief of
Seller would cause a Pay Out Event with respect to any series to occur, or an
event which, with notice or lapse of time or both, would constitute a Pay Out
Event with respect to any Series or (ii) unless the Rating Agency Condition
shall not have been satisfied with respect to such designation; provided that
                                                                --------
for this purpose Moody's shall not be deemed to be a "Rating Agency."

         (b) After the Discount Option Date, Seller shall treat Discount Option
Receivable Collections as Collections of Finance Charge Receivables.

                                   ARTICLE III

                   ADMINISTRATION AND SERVICING OF RECEIVABLES

         Prior to the FCMT Termination Date, the Receivables shall be serviced
as provided in the Pooling and Servicing Agreement, and this Article III will
have no effect. On and after the FCMT Termination Date:

         Section 3.1. Acceptance of Appointment and Other Matters Relating to
                      -------------------------------------------------------
the Servicer.
------------

         (a) FCNB agrees to act as the Servicer under this Agreement.  The
Noteholders by their acceptance of the Notes consent to FCNB's acting as
Servicer.

         (b) Subject to the provisions of this Agreement, the Servicer shall
service and administer the Receivables and shall collect payments due under the
Collateral Certificate and the Receivables in accordance with its customary and
usual servicing

                                       21

<PAGE>

procedures for servicing credit card receivables comparable to the Receivables
and in accordance with the Cardholder Guidelines and shall have full power and
authority, acting alone or through any party properly designated by it
hereunder, to do any and all things in connection with such servicing and
administration which it may deem necessary or desirable. Without limiting the
generality of the foregoing and subject to Section 7.1, the Servicer is hereby
                                           -----------
authorized and empowered (i) unless such power and authority is revoked by the
Indenture Trustee on account of the occurrence of a Servicer Default pursuant to
Section 7.1, to make withdrawals from the Collection Account as set forth in
-----------
this Agreement, (ii) unless such power and authority is revoked by the Indenture
Trustee on account of the occurrence of a Servicer Default pursuant to Section
7.1, to instruct the Indenture Trustee to make withdrawals and payments from the
Series Accounts in accordance with such instructions as set forth in this
Agreement, (iii) unless such power and authority is revoked by the Indenture
Trustee on account of the occurrence of a Servicer Default pursuant to Section
7.1, to instruct the Indenture Trustee in writing as provided herein, and (iv)
unless such power and authority is revoked by the Indenture Trustee on account
of the occurrence of a Servicer Default pursuant to Section 7.1, to execute and
                                                    -----------
deliver, on behalf of the Issuer for the benefit of the Noteholders, 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 Receivables
and, after the delinquency of any Receivable and to the extent permitted under
and in compliance with applicable law and regulations, to commence enforcement
proceedings with respect to such Receivables. The Owner Trustee shall furnish
the Servicer with any powers of attorney and other documents necessary or
appropriate to enable the Servicer to carry out its servicing and administrative
duties hereunder.

         (c) If Seller is unable for any reason to transfer Receivables to the
Issuer in accordance with the provisions of this Agreement (including by reason
of the occurrence of an Insolvency Event), the Servicer agrees to allocate and
pay to the Issuer, after such date, all Collections as contemplated by Section
                                                                       -------
2.5(c).
------

         (d) The Servicer shall not be obligated to use separate servicing
procedures, offices, employees or accounts for servicing the Receivables from
the procedures, offices, employees and accounts used by the Servicer in
connection with servicing other credit card receivables.

         (e) The Servicer shall maintain fidelity bond coverage insuring against
losses through wrongdoing of its officers and employees who are involved in the
servicing of credit card receivables.

         Section 3.2. Servicing Compensation. As compensation for its servicing
                      ----------------------
activities hereunder and reimbursement for its expenses as set forth in the
immediately following paragraph, the Servicer shall be entitled to receive a
monthly servicing fee in respect of any Monthly Period (or portion thereof)
prior to the termination of the Issuer pursuant to the Indenture (the "Monthly
Servicing Fee").

                                       22

<PAGE>

The share of the Monthly Servicing Fee allocable to each Series of Notes with
respect to any Monthly Period (or portion thereof) shall be payable on the
related Distribution Date and, with respect to each Series (unless provided in
the related Indenture Supplement), shall be equal to the amount specified in the
related Indenture Supplement (the "Investor Monthly Servicing Fee"). The share
                                   ------------------------------
of the Monthly Servicing Fee allocable to the Holder of the Seller Interest with
respect to any Monthly Period (or portion thereof) shall be equal to one-twelfth
of the product of (A) Seller Amount minus the sum of the Excess Funding Amount
and the balance on deposit in the Principal Collections Subaccount, and (B) the
weighted average of the Servicing Fee Rates with respect to each Series of Notes
then outstanding (the "Monthly Seller Servicing Fee"). The Monthly Servicing Fee
                       ----------------------------
shall equal the sum of (x) the aggregate amount of Investor Monthly Servicing
Fees with respect to each Series then outstanding and (y) the Monthly Seller
Servicing Fee. The Investor Monthly Servicing Fee with respect to any Series is
payable in arrears on the related Distribution Date (unless otherwise provided
in the related Indenture Supplement) and the Monthly Seller Servicing Fee is
payable in arrears no later than the last Distribution Date with respect to any
Series occurring in a Monthly Period. The Monthly Seller Servicing Fee and,
unless otherwise provided in an Indenture Supplement, each Investor Monthly
Servicing Fee, shall be calculated on the basis of a 360-day year consisting of
twelve 30-day months.

         The Servicer's expenses include the reasonable fees and disbursements
of independent accountants and all other expenses incurred by the Servicer in
connection with its activities hereunder; provided that the Servicer shall not
                                          --------
be liable for any liabilities, costs or expenses of the Issuer, the Noteholders
or the Note Owners arising under any tax law, including any federal, state or
local income or franchise taxes or any other tax imposed on or measured by
income (or any interest or penalties with respect thereto or arising from a
failure to comply therewith). The Servicer shall be required to pay such
expenses for its own account and shall not be entitled to any payment therefor
other than the Monthly Servicing Fee.

         Section 3.3. Representations; Warranties and Covenants of the Servicer.
                      ---------------------------------------------------------
FCNB, as initial Servicer, hereby makes, and any successor Servicer by its
appointment hereunder shall make, the following representations and warranties
and covenants on which the Owner Trustee has relied in accepting the Receivables
in trust and in authenticating Notes:

         (a) Organization and Good Standing. The Servicer is duly organized,
             ------------------------------
validly existing and in good standing under the laws of its jurisdiction of
organization, and has full corporate power, authority and right to own its
properties and conduct its business as such properties are presently owned and
such business is presently conducted, and to execute, deliver and perform its
obligations under this Agreement.

                                       23

<PAGE>

         (b) Due Qualification. The Servicer is qualified as a foreign banking
             -----------------
association or other entity in any state where it is required to be so qualified
to service the Receivables as required by this Agreement and has obtained all
necessary licenses and approvals as required under federal and state law, in
each case, where the failure to be so qualified, licensed or approved, could
reasonably be expected materially and adversely to affect the ability of the
Servicer to comply with the terms of this Agreement.

         (c) Due Authorization. The execution, delivery, and performance of this
             -----------------
Agreement have been duly  authorized by the Servicer by all necessary corporate
action on the part of the Servicer.

         (d) Binding Obligation. This Agreement constitutes the legal, valid and
             ------------------
binding obligations of the Servicer, enforceable in accordance with its terms,
except as enforceability may be limited by Debtor Relief Laws and except as such
enforceability may be limited by general principles of equity (whether
considered in a proceeding at law or in equity).

         (e) No Violation. The execution and delivery of this Agreement by the
             ------------
Servicer, and the performance of the transactions contemplated by this Agreement
and the fulfillment of the terms hereof applicable to the Servicer, will not
conflict with, violate, result in any breach of any of the terms and provisions
of, or constitute (with or without notice or lapse of time or both) a default
under, any Requirements of Law applicable to the Servicer or any indenture,
contract, agreement, mortgage, deed of trust or other instrument to which the
Servicer is a party or by which it is bound.

         (f) No Proceedings. There are no proceedings or investigations pending
             --------------
or, to the best knowledge of the Servicer, threatened against the Servicer
before any court, regulatory body, administrative agency or other tribunal or
governmental instrumentality seeking to prevent the consummation of any of the
transactions contemplated by this Agreement, seeking any determination or ruling
that, in the reasonable judgment of the Servicer, would materially and adversely
affect the performance by the Servicer of its obligations under this Agreement,
or seeking any determination or ruling that would materially and adversely
affect the validity or enforceability of this Agreement.

         (g) Rescission and Cancellation. Other than pursuant to and in
             ---------------------------
accordance with the Cardholder Guidelines, the Servicer shall not rescind or
cancel any Receivable unless such rescission or cancellation shall have been
ordered or directed by a Governmental Authority.

         (h) Other Actions. Other than pursuant to and in accordance with the
             -------------
Cardholder Guidelines and as otherwise specifically permitted by this Agreement,
the Servicer shall not (i) take or fail to take any action if such action or
failure to act

                                       24

<PAGE>

would impair the rights of the Issuer in any Receivable, or (ii) revise or defer
any payment due in respect of any Receivable.

         (i) Compliance  with  Requirements  of Law. The Servicer  shall duly
             --------------------------------------
satisfy all  obligations on its part to be fulfilled under or in connection with
the Receivables or Accounts, will maintain in effect all qualifications required
under Requirements of Law in order to properly service the Receivables and the
Accounts and will comply in all material respects with all Requirements of Law
in connection with servicing the Receivables and the Accounts the failure to
comply with which would have a material adverse effect on the Noteholders.

         Section 3.4. Reports and Records for the Indenture Trustee; Bank
                      ---------------------------------------------------
Account Statements.
-------------------

         (a) Daily Reports. On each Business Day, the Servicer shall prepare and
             -------------
make available at the office of the Servicer for inspection by the Indenture
Trustee a record setting forth (i) the aggregate amount of Collections processed
by the Servicer on the preceding Business Day and (ii) the aggregate amount of
Receivables as of the close of business on the preceding Business Day.

         (b) Monthly Servicer's Certificate. Unless otherwise stated in the
             ------------------------------
related Indenture Supplement with respect to any Series, on each Determination
Date, the Servicer shall forward to the Indenture Trustee, the Paying Agent, any
Rating Agency and any Enhancement Provider a certificate of a Servicing Officer
substantially in the form of Exhibit C.
                             ---------

         Section 3.5. Annual Servicer's Certificate. Unless the Servicer has
                      -----------------------------
been relieved of all of its obligations under this Agreement because the final
Series has been repaid during the prior calendar year, the Servicer will deliver
to the Indenture Trustee, any Enhancement Provider and any Rating Agency on or
before April 30 of each calendar year, beginning with April 30, 2002, an
Officer's Certificate substantially in the form of Exhibit D stating that (a) a
                                                   ---------
review of the activities of the Servicer during the preceding calendar year (or,
with respect to the certificate to be delivered on April 30, 2002, since the
Issuer's inception) and of its performance under this Agreement was made under
the supervision of the officer signing such certificate and (b) to the best of
such officer's knowledge, based on such review, the Servicer has fully performed
all its obligations under this Agreement throughout such period, or, if there
has been a default in the performance of any such obligation, specifying each
such default known to such officer and the nature and status thereof. A copy of
such certificate may be obtained by any Noteholder by a request in writing to
the Indenture Trustee addressed to the Corporate Trust Office.

         Section 3.6. Annual Independent Public Accountants' Servicing Report.
                      -------------------------------------------------------

                                       25

<PAGE>

         (a) Unless the Servicer has been relieved of all of its obligations
under this Agreement because the final Series has been repaid during the prior
calendar year, on or before April 30 of each calendar year after the year during
which the FCMT Termination Date occurs, the Servicer shall cause KPMG LLP or
another firm of nationally recognized independent public accountants (who may
also render other services to the Servicer or Seller) to furnish a report
covering the preceding annual period to the effect that such accountants have
applied certain agreed-upon procedures to certain documents and records relating
to the servicing of Accounts under this Agreement (and Pooling and Servicing
Agreement, if applicable), compared the information contained in the Servicer's
certificates (excluding Servicer's certificates for any Series that has been
repaid during the prior calendar year) delivered during the period covered by
such report (which shall be the period from January 1, to and including December
31 of such calendar year) with such documents and records in each case as
specified in Exhibit E. In addition, each report shall set forth the agreed-upon
             ---------
procedures performed. A copy of such report may be obtained by any Noteholder by
a request in writing to the Indenture Trustee addressed to the Corporate Trust
Office. In addition, the Servicer shall cause such accountants to furnish a copy
of such report to each Rating Agency and to each Enhancement Provider.

         (b) On or before April 30 of each calendar year, beginning with April
30, 2002, the Servicer shall cause KPMG LLP or another firm of nationally
recognized independent public accountants (who may also render other services to
the Servicer or Seller) to furnish a report to the Indenture Trustee to the
effect that they have compared the mathematical calculations of each amount set
forth in the monthly certificates forwarded by the Servicer pursuant to Section
                                                                        -------
3.4(b) during the period covered by such report (which shall be the period from
------
January 1, to and including December 31 of such calendar year) with the
Servicer's computer reports which were the source of such amounts and that on
the basis of such comparison, such accountants are of the opinion that such
amounts are in agreement, except for such exceptions as they believe to be
immaterial and such other exceptions as shall be set forth in such statement. A
copy of such report may be obtained by any Noteholder by a request in writing to
the Owner Trustee addressed to the Corporate Trust Office. In addition, the
Servicer shall cause such accountants to furnish a copy of such report to each
Rating Agency and to each Enhancement Provider.

         Section 3.7. Tax Treatment. Seller has structured this Agreement and
                      -------------
the Notes to facilitate a secured, credit-enhanced financing on favorable terms
with the intention that the Notes will constitute indebtedness of Seller for
federal income and state and local tax purposes; and Seller and each Noteholder
by acceptance of its Note agrees to recognize and report the Notes as
indebtedness of Seller for purposes of federal, state and local income or
franchise taxes and any other tax imposed on or measured by income, and to
report all receipts and payments relating thereto in a manner that is consistent
with such characterization.

                                       26

<PAGE>

         Section 3.8. Notices to Seller. In the event that FCNB is no longer
                      -----------------
acting as Servicer, any Successor Servicer appointed pursuant to Section 7.2
                                                                 -----------
shall deliver or make available to Seller each certificate and report required
to be prepared, forwarded or delivered thereafter pursuant to Sections 3.4, 3.5
                                                              ------------  ---
and 3.6.
    ---

         Section 3.9. Reports to the Commission. The Servicer shall, on behalf
                      -------------------------
of the Issuer, cause to be filed with the Commission any periodic reports
required to be filed under the provisions of the Securities Exchange Act of
1934, and the rules and regulations of the Commission thereunder. Seller shall,
at its own expense, cooperate in any reasonable request of the Servicer in
connection with such filings. The Issuer agrees to cooperate with the Servicer
in connection with such filings.

                                   ARTICLE IV

                        OTHER MATTERS RELATING TO SELLER

         Section 4.1. Liability of Seller. Seller shall be liable in accordance
                      -------------------
herewith to the extent, and only to the extent, of the obligations specifically
undertaken by Seller hereunder.

         Section 4.2. Merger or Consolidation of, or Assumption of the
                      ------------------------------------------------
Obligations of, Seller etc.
--------------------------

         (a) Seller shall not consolidate with or merge into any other Person or
convey or transfer its properties and assets substantially as an entirety to any
Person, unless:

             (i)      the Person formed by such consolidation or into which
         Seller is merged or the Person which acquires by conveyance or transfer
         the properties and assets of Seller substantially as an entirety shall
         be, if Seller is not the surviving entity, organized and existing under
         the laws of the United States of America or any State or the District
         of Columbia and shall expressly assume, by an agreement supplemental
         hereto, executed and delivered to the Owner Trustee, in form
         satisfactory to the Owner Trustee, the performance of every covenant
         and obligation of Seller, as applicable hereunder, and shall benefit
         from all the rights granted to Seller, as applicable hereunder. To the
         extent that any right, covenant or obligation of Seller, as applicable
         hereunder, is inapplicable to the successor entity, such successor
         entity shall be subject to such covenant or obligation, or benefit from
         such right, as would apply, to the extent practicable, to such
         successor entity. In furtherance hereof, in applying this Section 4.2
                                                                   -----------
         to a successor entity, Section 6.1 hereof shall be applied by reference
                                -----------
         to events of involuntary liquidation, receivership or conservatorship
         applicable to such successor entity as such be set forth in the
         officer's certificate described in Section 4.2(a)(ii);
                                            ------------------

                                       27

<PAGE>

          (ii)  Seller shall have delivered to the Indenture Trustee an
     Officer's Certificate of Seller and an Opinion of Counsel, each stating
     that such consolidation, merger, conveyance or transfer and such
     supplemental agreement comply with this Section 4.2 and that all conditions
                                             -----------
     precedent herein provided for relating to such transaction have been
     complied with and, in the case of the Opinion of Counsel, that such
     supplemental agreement is legal, valid and binding with respect to Seller;
     and

          (iii) Seller shall have delivered notice of such consolidation,
     merger, conveyance or transfer to each Rating Agency, and the Rating Agency
     Condition shall have been satisfied; it being understood that a sale,
     transfer, assignment, participation, pledge or other disposition of the
     Seller Interest or the issuance of a Supplemental Certificate permitted by
     Section 3.4 of the Trust Agreement shall not be deemed to be a conveyance
     -----------
     or transfer of the Seller's property substantially as an entirety for
     purposes of this Section 4.2.
                      -----------

it being understood that a sale, transfer, assignment, participation, pledge or
other disposition of the Seller Interest or the issuance of a Supplemental
Certificate permitted by Section 3.4 of the Trust Agreement shall not be deemed
to be a conveyance or transfer of the Seller's property substantially as an
entirety for purposes of this Section 4.2.
                              -----------

     (b) The obligations of Seller hereunder shall not be assignable nor shall
any Person succeed to the obligations of Seller hereunder except for mergers,
consolidations, assumptions or transfers in accordance with the provisions of
the foregoing paragraph.

     Section 4.3. Limitation on Liability of Seller. Neither Seller nor any of
                  ---------------------------------
the directors or officers or employees or agents of Seller shall be under any
liability to the Issuer, the Owner Trustee, the Noteholders or any other Person
for any action taken or for refraining from the taking of any action pursuant to
this Agreement whether arising from express or implied duties under this
Agreement; provided, however, that this provision shall not protect Seller or
           --------  -------
any such person against any liability which would otherwise be imposed by reason
of willful misfeasance, bad faith or gross negligence in the performance of
duties or by reason of its willful misconduct hereunder; and provided, further,
                                                             --------  -------
that Seller shall be liable for any actual damages resulting directly from
Seller's material failure to perform any of its obligations under this
Agreement, but only if and to the extent that another remedy is not provided for
and available hereunder. Seller and any director or officer or employee or agent
of 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. Notwithstanding anything to the contrary in this Agreement or any
other Transaction Document, any payment by the Seller pursuant to this Section
                                                                       -------
4.3 shall only be made to the extent the Seller has funds available for such
---
purpose after

                                       28

<PAGE>

     amounts payable to Securityholders (as defined in the Receivables Purchase
     Agreement) have been paid in full. Each party hereto agrees that the
     failure to make such payment shall not give rise to any claim against the
     Seller.

                                    ARTICLE V

                     OTHER MATTERS RELATING TO THE SERVICER

          Section 5.1.  Liability of the Servicer. The Servicer shall be liable
                        -------------------------
     in accordance herewith only to the extent of the obligations specifically
     undertaken by the Servicer in such capacity herein.

          Section 5.2.  Merger or Consolidation of, or Assumption of the
                        ------------------------------------------------
     Obligations of, the Servicer. The Servicer shall not consolidate with or
     ----------------------------
     merge into any other Person or convey or transfer its properties and assets
     substantially as an entirety to any Person, unless:

               (a)      the Person formed by such consolidation or into which
          the Servicer is merged or the Person which acquires by conveyance or
          transfer the properties and assets of the Servicer substantially as an
          entirety shall be a corporation or a banking association organized and
          existing under the laws of the United States of America or any State
          or the District of Columbia and, if the Servicer is not the surviving
          entity, shall expressly assume, by an agreement supplemental hereto,
          executed and delivered to the Owner Trustee in form satisfactory to
          the Owner Trustee, the performance of every covenant and obligation of
          the Servicer hereunder;

               (b)      the Servicer has delivered to the Indenture Trustee and
          each Enhancement Provider an Officer's Certificate and an Opinion of
          Counsel each stating that such consolidation, merger, conveyance or
          transfer and such supplemental agreement comply with this Section 5.2
                                                                    -----------
          and that all conditions precedent herein provided for relating to such
          transaction have been complied with; and

               (c)      the Servicer shall have delivered notice of such
          consolidation, merger, conveyance or transfer to each of the Rating
          Agencies;

it being understood that a sale, transfer, assignment, participation, pledge or
other disposition of the Seller Interest or the issuance of a Supplemental
Certificate permitted by Section 3.4 of the Trust Agreement shall not be deemed
to be a conveyance or transfer of the Servicer's property substantially as an
entirety for purposes of this Section 5.2.
                              -----------

          Section 5.3.  Limitation on Liability of the Servicer and Others.
                        --------------------------------------------------
     Except as provided in Section 5.4 with respect to the Issuer and the Owner
                           -----------
     Trustee and Section

                                       29

<PAGE>

     6.7 of the Indenture with respect to the Indenture Trustee, neither the
     Servicer nor any of the directors or officers or employees or agents of the
     Servicer shall be under any liability to the Issuer, the Owner Trustee, the
     Indenture Trustee, the Noteholders or any other Person for any action taken
     or for refraining from the taking of any action in its capacity as Servicer
     pursuant to this Agreement; provided, however, that this provision shall
     not protect the Servicer or any such Person against any liability which
     would otherwise be imposed by reason of willful misfeasance, bad faith or
     gross negligence in the performance of duties or by reason of its willful
     misconduct hereunder. The Servicer and any director or officer or employee
     or agent of the Servicer may rely in good faith on any document of any kind
     prima facie properly executed and submitted by any Person respecting any
     matters arising hereunder. The Servicer shall not be under any obligation
     to appear in, prosecute or defend any legal action which does not arise out
     of its activities in servicing the Receivables in accordance with this
     Agreement which in its reasonable opinion may involve it in any expense or
     liability.

          Section 5.4.  Indemnification of the Issuer and the Owner Trustee. The
                        ---------------------------------------------------
     Servicer shall indemnify, defend and hold harmless the Issuer and the Owner
     Trustee and its officers, directors, employees and agents from and against
     any loss, liability, expense, damage or injury suffered or sustained by
     reason of any acts, omissions or alleged acts or omissions arising out of
     activities of the Issuer or the Owner Trustee pursuant to the Transaction
     Documents, including those arising from acts or omissions of the Servicer
     pursuant to this Agreement, including, but not limited to any judgment,
     award, settlement, reasonable attorneys' fees and other costs or expenses
     incurred in connection with the defense of any actual or threatened action,
     proceeding or claim; provided, however, that the Servicer shall not
                          --------  -------
     indemnify the Issuer or the Owner Trustee if such acts, omissions or
     alleged acts or omissions constitute fraud, gross negligence or breach of
     fiduciary duty by the Owner Trustee; provided further, that the Servicer
                                          -------- -------
     shall not indemnify the Issuer, any Noteholders or any Note Owners for any
     liabilities, costs or expenses of the Issuer with respect to any action
     taken by the Indenture Trustee at the request of such Noteholders; provided
                                                                        --------
     further, that the Servicer shall not indemnify the Issuer, any Noteholders
     -------
     or any Note Owners as to any losses, claims or damages incurred by any of
     them in their capacities as investors, including losses incurred as a
     result of defaulted Receivables or Receivables which are written off as
     uncollectible; and provided further, that the Servicer shall not indemnify
                        -------- -------
     the Issuer, or any Noteholders for any liabilities, costs or expenses of
     the Issuer, or such Noteholders arising under any tax law, including any
     federal, state or local income or franchise taxes or any other tax imposed
     on or measured by income (or any interest or penalties with respect thereto
     or arising from a failure to comply therewith) required to be paid by the
     Issuer, or such Noteholders in connection herewith to any taxing authority.
     The provisions of this indemnity shall run directly to and be enforceable
     by an injured party subject to the limitations hereof.

          Any indemnification pursuant to this Section shall not be payable from
     the assets of the Issuer.

                                       30

<PAGE>

          The obligations of the Servicer under this Section 5.4 shall survive
                                                     -----------
     the termination of the Issuer and the resignation or removal of the Owner
     Trustee.

          The Servicer shall indemnify the Indenture Trustee as provided in
     Section 6.7 of the Master Indenture.

          Section 5.5.  The Servicer Not to Resign. The Servicer shall not
                        --------------------------
     resign from the obligations and duties hereby imposed on it except upon
     determination that (i) the performance of its duties hereunder is or
     becomes impermissible under applicable law and (ii) there is no reasonable
     action which the Servicer could take to make the performance of its duties
     hereunder permissible under applicable law. Any such determination
     permitting the resignation of the Servicer shall be evidenced as to clause
     (i) by an Opinion of Counsel to such effect delivered to the Indenture
     Trustee. No such resignation shall become effective until the Indenture
     Trustee or a Successor Servicer shall have assumed the responsibilities and
     obligations of the Servicer in accordance with Section 7.2. If the
     Indenture Trustee is unable within 120 days of the date of such
     determination to appoint a Successor Servicer, the Indenture Trustee shall
     serve as Successor Servicer hereunder. Notice of any resignation by the
     Servicer shall be given to each Rating Agency by the resigning Servicer.

          Section 5.6.  Access to Certain Documentation and Information
                        -----------------------------------------------
     Regarding the Receivables. The Servicer shall provide to the Indenture
     -------------------------
     Trustee access to the documentation regarding the Accounts and the
     Receivables in such cases where the Indenture Trustee is required in
     connection with the enforcement of the rights of the Noteholders, or by
     applicable statutes or regulations to review such documentation, such
     access being afforded without charge but only (i) upon reasonable request,
     (ii) during normal business hours, (iii) subject to the Servicer's normal
     security and confidentiality procedures and (iv) at offices designated by
     the Servicer. Nothing in this Section 5.6 shall derogate from the
                                   -----------
     obligation of Seller, the Indenture Trustee or the Servicer to observe any
     applicable law prohibiting disclosure of information regarding the Obligors
     and the failure of the Servicer to provide access as provided in this
     Section 5.6 as a result of such obligation shall not constitute a breach of
     -----------
     this Section 5.6.
          -----------

          Section 5.7.  Delegation of Duties. It is understood and agreed by the
                        --------------------
     parties hereto that the Servicer may delegate certain of its duties
     hereunder to First Data Resources Inc., a Delaware corporation. In
     addition, in the ordinary course of business, the Servicer may at any time
     delegate any duties hereunder to any other Person who agrees to conduct
     such duties in accordance with the Cardholder Guidelines. Any such
     delegations shall not relieve the Servicer of its liability and
     responsibility with respect to such duties, and shall not constitute a
     resignation within the meaning of Section 5.5. The Servicer shall notify
                                       -----------
     each Rating Agency of any material delegation of its duties not consistent
     with its normal practices as of the date hereof.

                                       31

<PAGE>

          Section 5.8.  Examination of Records. The Servicer shall clearly and
                        ----------------------
     unambiguously identify each Account (including any Additional Account
     designated pursuant to Section 2.6) in its computer or other records to
     reflect that the Receivables arising in such Account have been transferred
     by Seller to the Issuer pursuant to this Agreement. The Servicer shall,
     prior to the sale or transfer to a third party of any receivable held in
     its custody, examine its computer and other records to determine that such
     receivable is not a Receivable.

                                   ARTICLE VI

                                INSOLVENCY EVENTS

          Section 6.1.  Rights upon the Occurrence of an Insolvency Event. If
                        -------------------------------------------------
     Seller shall consent or fail to object to the appointment of a bankruptcy
     trustee or conservator, receiver or liquidator in any bankruptcy proceeding
     or other insolvency, readjustment of debt, marshaling of assets and
     liabilities or similar proceedings of or relating to Seller of or relating
     to all or substantially all of Seller's property, or the commencement of an
     action seeking a decree or order of a court or agency or supervisory
     authority having jurisdiction in the premises for the appointment of a
     bankruptcy trustee or conservator, receiver or liquidator in any
     insolvency, readjustment of debt, marshaling of assets and liabilities or
     similar proceedings, or for the winding-up, insolvency, bankruptcy,
     reorganization, conservatorship, receivership or liquidation of such
     entity's affairs, or notwithstanding an objection by Seller any such action
     shall have remained undischarged or unstayed for a period of sixty (60)
     days or upon entry of any order or decree providing for such relief; or
     Seller shall admit in writing its inability to pay its debts generally as
     they become due, file, or consent or fail to object (or object without
     dismissal of any such filing within sixty (60) days of such filing) to the
     filing of, a petition to take advantage of any Debtor Relief Law, make an
     assignment for the benefit of its creditors (any such act or occurrence
     with respect to any Person being an "Insolvency Event"), Seller shall on
     the day any such Insolvency Event occurs immediately cease to transfer
     Principal Receivables to the Issuer and shall promptly give notice to the
     Indenture Trustee, the Owner Trustee and the Rating Agencies thereof.

                                   ARTICLE VII

                                SERVICER DEFAULTS

          Section 7.1.  Servicer Defaults. If any one of the following events (a
                        -----------------
     "Servicer Default") shall occur and be continuing after the FCMT
      ----------------
     Termination Date:

               (a)      any failure by the Servicer to make any payment,
          transfer or deposit or to give instructions or notice to the Indenture
          Trustee to make such payment, transfer or deposit or to make any
          required drawing, withdrawal, or payment under any Enhancement
          required to be made by the Servicer on or

                                       32

<PAGE>

          before the date occurring five Business Days after the date such
          payment, transfer, deposit, withdrawal or drawing, or such instruction
          or notice is required to be made or given by the Servicer, as the case
          may be, under the terms of this Agreement, the Indenture or any
          Indenture Supplement; or

               (b)      failure on the part of the Servicer duly to observe or
          perform in any material respect any other covenants or agreements of
          the Servicer set forth in this Agreement which has a material adverse
          effect on the Noteholders, which continues unremedied for a period of
          60 days after the date on which written notice of such failure
          requiring the same to be remedied shall have been given to the
          Servicer by the Indenture Trustee, or to the Servicer and the
          Indenture Trustee by the Noteholders holding not less than 10% of the
          outstanding principal amount of any Series adversely affected thereby
          and continues to materially adversely affect such Noteholders for such
          period; or the Servicer's delegation of its duties under this
          Agreement except as permitted by Section 5.7; or
                                           -----------

               (c)      any representation, warranty or certification made by
          the Servicer in this Agreement or in any certificate delivered
          pursuant to this Agreement shall prove to have been incorrect when
          made, which has a material adverse effect on the rights of the
          Noteholders and which continues to be incorrect in any material
          respect for a period of 60 days after the date on which written notice
          of such failure requiring the same to be remedied shall have been
          given to the Servicer by the Indenture Trustee, or to the Servicer and
          the Indenture Trustee by the Noteholders holding not less than 10% of
          the outstanding principal amount of any Series adversely affected
          thereby and continues to materially adversely affect such Noteholders
          for such period, or if such failure cannot be cured within such 60-day
          period owing to causes beyond the control of the Servicer, if the
          Servicer shall fail to proceed promptly to cure the same and prosecute
          the curing of such failure with diligence and continuity;

               (d)      the Servicer shall (i) become insolvent, (ii) fail to
          pay its debts generally as they become due, (iii) voluntarily seek,
          consent to, or acquiesce in the benefit or benefits of any Debtor
          Relief Law, or (iv) become a party to (or be made the subject of) any
          proceeding provided for by any Debtor Relief Law, other than as a
          creditor or claimant, and, in the event such proceeding is
          involuntary, the petition instituting same is not dismissed within 60
          days after its filing; or

               (e)      with respect to any Series, any other event specified in
          the Indenture Supplement for such Series,

     then, so long as such Servicer Default shall not have been remedied, either
     the Indenture Trustee, or the Noteholders holding more than 50% of the
     Outstanding

                                       33

<PAGE>

     Amount, by notice then given in writing to the Servicer (and to the
     Indenture Trustee if given by the Noteholders) (a "Termination Notice"),
                                                        ------------------
     may terminate all of the rights and obligations of the Servicer as Servicer
     under this Agreement and in and to the Receivables and the proceeds thereof
     (other than its rights and interest, if any, as holder of the Seller
     Interest or any Notes). After receipt by the Servicer of such Termination
     Notice, and on the date that a Successor Servicer shall have been appointed
     by the Indenture Trustee pursuant to Section 7.2, all authority and power
                                          -----------
     of the Servicer under this Agreement shall pass to and be vested in a
     Successor Servicer; and the Indenture Trustee is hereby authorized and
     empowered (upon the failure of the Servicer to cooperate) to execute and
     deliver, on behalf of the Servicer, as attorney-in-fact or otherwise, all
     documents and other instruments upon the failure of the Servicer to execute
     or deliver such documents or instruments, and to do and accomplish all
     other acts or things necessary or appropriate to effect the purposes of
     such transfer of servicing rights. The Servicer agrees to cooperate with
     the Indenture Trustee and such Successor Servicer in effecting the
     termination of the responsibilities and rights of the Servicer to conduct
     servicing hereunder, including the transfer to such Successor Servicer of
     all authority of the Servicer to service the Receivables provided for under
     this Agreement, including all authority over all Collections which shall on
     the date of transfer be held by the Servicer for deposit, or which have
     been deposited by the Servicer, in any Collection Account or Series
     Account, or which shall thereafter be received with respect to the
     Receivables, and in assisting the Successor Servicer and in enforcing all
     rights to Insurance Proceeds. The Servicer shall promptly transfer its
     electronic records relating to the Receivables to the Successor Servicer in
     such electronic form as the Successor Servicer may reasonably request and
     shall promptly transfer to the Successor Servicer all other records,
     correspondence and documents necessary for the continued servicing of the
     Receivables in the manner and at such times as the Successor Servicer shall
     reasonably request. To the extent that compliance with this Section 7.1
                                                                 -----------
     shall require the Servicer to disclose to the Successor Servicer
     information of any kind which the Servicer reasonably deems to be
     confidential, the Successor Servicer shall be required to enter into such
     customary licensing and confidentiality agreements as the Servicer shall
     deem necessary to protect its interest. The Servicer shall, on the date of
     any servicing transfer, transfer all of its rights and obligations, if any,
     in respect of any Enhancement to the Successor Servicer.

          Section 7.2.  Indenture Trustee to Act; Appointment of Successor. (a)
                        --------------------------------------------------
     On and after the receipt by the Servicer of a Termination Notice pursuant
     to Section 7.1, the Servicer shall continue to perform all servicing
        -----------
     functions under this Agreement until the date specified in the Termination
     Notice or otherwise specified by the Indenture Trustee in writing or, if no
     such date is specified in such Termination Notice or otherwise specified by
     the Indenture Trustee, until a date mutually agreed upon by the Servicer
     and the Indenture Trustee. The Indenture Trustee shall as promptly as
     possible after the giving of a Termination Notice appoint (with the consent
     of the Noteholders holding greater than 50% of the outstanding principal
     amount of each Series, and with prior written notice to the Rating
     Agencies) a successor servicer (the

                                       34

<PAGE>

     "Successor Servicer"), and such Successor Servicer shall accept its
      ------------------
     appointment by a written assumption in a form acceptable to the Indenture
     Trustee. The Indenture Trustee may obtain bids from any potential successor
     servicer. If the Indenture Trustee is unable to obtain any bids from any
     potential successor servicer and the Servicer delivers an Officer's
     Certificate to the effect that it cannot in good faith cure the Servicer
     Default which gave rise to a transfer of servicing, then the Owner Trustee
     shall offer Seller the right to accept retransfer of all the Receivables
     and Seller may accept retransfer of all the Receivables, provided, however,
                                                              --------  -------
     that if the long-term unsecured debt obligations of Seller are not rated at
     the time of such purchase at least Baa3 by Moody's and BBB- by Standard &
     Poor's, no such retransfer shall occur unless Seller shall deliver an
     Opinion of Counsel reasonably acceptable to the Indenture Trustee that such
     retransfer would not constitute a fraudulent conveyance of Seller. The
     retransfer deposit amount for such a retransfer shall be equal to the
     higher of the sum of (i) the outstanding principal balance of the Notes,
     plus accrued interest thereon, at the Note Rate, through the date of
     retransfer and (ii) the average bid price quoted by two recognized dealers
     for a similar security rated in the highest rating category by Moody's and
     Standard & Poor's and having a remaining maturity substantially similar to
     the remaining maturity of the Notes. In the event that a Successor Servicer
     has not been appointed and has not accepted its appointment at the time
     when the Servicer ceases to act as Servicer, the Indenture Trustee without
     further action shall automatically be appointed the Successor Servicer.
     Notwithstanding the above, the Indenture Trustee shall, if it is legally
     unable so to act, 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 includes the servicing of
     installment sales charge, credit and/or credit card account receivables as
     the Successor Servicer hereunder. Notwithstanding anything else herein to
     the contrary, in no event shall the Indenture Trustee be liable for any
     servicing fee.

          (b)  Upon its appointment, the Successor Servicer shall be the
     successor in all respects to the Servicer with respect to servicing
     functions under this Agreement and shall be subject to all the
     responsibilities, duties and liabilities relating thereto placed on the
     Servicer by the terms and provisions hereof, and all references in this
     Agreement to the Servicer shall be deemed to refer to the Successor
     Servicer. Any Successor Servicer, by its acceptance of its appointment,
     will automatically agree to be bound by the terms and provisions of any
     Enhancement to the extent that such terms apply to the Servicer. Any
     sub-servicing agreement shall be assigned to the Successor Servicer.

          (c)  In connection with such appointment and assumption, the Indenture
     Trustee shall be entitled to such compensation, or may make such
     arrangements for the compensation of the Successor Servicer out of
     Collections, as it and such Successor Servicer shall agree; provided,
                                                                 --------
     however, that no such compensation shall be in excess of the Monthly
     -------
     Servicing Fees permitted to the Servicer pursuant to Section 3.2. The
                                                          -----------
     Holder of the Seller Interest agrees that if the Servicer is terminated
     hereunder, it will agree, at the request of the Indenture Trustee or any
     Successor

                                       35

<PAGE>

Servicer, to deposit a portion of the Collections in respect of Finance Charge
Receivables that it is entitled to receive pursuant to the Indenture, to pay its
share of the compensation of the Successor Servicer. The Successor Servicer
shall have no liability for any actions or failure to act on the part of the
Servicer.

     (d)   All authority and power granted to the Successor Servicer under this
Agreement shall automatically cease and terminate upon termination of the Issuer
pursuant to the Trust Agreement and shall pass to and be vested in Seller and,
Seller is hereby authorized and empowered to execute and deliver, on behalf of
the Successor Servicer, as attorney-in-fact or otherwise, all documents and
other instruments, and to do and accomplish all other acts or things necessary
or appropriate to effect the purposes of such transfer of servicing rights. The
Successor Servicer agrees to cooperate with Seller in effecting the termination
of the responsibilities and rights of the Successor Servicer to conduct
servicing on the Receivables. The Successor Servicer shall transfer its
electronic records relating to the Receivables to Seller in such electronic form
as Seller may reasonably request and shall transfer all other records,
correspondence and documents to Seller in the manner and at such times as Seller
shall reasonably request. To the extent that compliance with this Section 7.2
                                                                  -----------
shall require the Successor Servicer to disclose to Seller information of any
kind which the Successor Servicer deems to be confidential, Seller shall be
required to enter into such customary licensing and confidentiality agreements
as the Successor Servicer shall deem necessary to protect its interests.

     Section 7.3.  Notification to Noteholders. Upon the occurrence of any
                   ---------------------------
Servicer Default, the Servicer shall give prompt written notice thereof to a
Trustee Officer of the Indenture Trustee and the Indenture Trustee shall give
notice to the Noteholders at their respective addresses appearing in the Note
Register. Upon any termination or appointment of a Successor Servicer pursuant
to this Article VII, the Indenture Trustee shall give prompt written notice
        -----------
thereof to Noteholders at their respective addresses appearing in the Note
Register. A copy of any notice given pursuant to this Section 7.3 shall be
                                                      -----------
delivered to each Rating Agency.

                                  ARTICLE VIII

                                   TERMINATION

     Section 8.1.  Termination of Agreement. This Agreement and the respective
                   ------------------------
obligations and responsibilities of the Issuer, Seller and the Servicer under
this Agreement shall terminate, except with respect to the duties described in
Section 5.4, on the Trust Termination Date.
-----------

                                       36

<PAGE>

                                   ARTICLE IX

                            MISCELLANEOUS PROVISIONS

     Section 9.1.   Amendment; Waiver of Past Defaults.
                    ----------------------------------

     (a)   This Agreement may be amended from time to time by the Servicer,
Seller and the Issuer, without the consent of any of the Indenture Trustee or
any Noteholder to cure any ambiguity, to correct or supplement any provisions
herein which may be inconsistent with any other provisions herein or to add any
other provisions with respect to matters or questions raised under this
Agreement which shall not be inconsistent with the provisions of this Agreement;
provided, however, that such action shall not adversely affect in any material
--------  -------
respect the interests of any of the Noteholders. Additionally, this Agreement
may be amended from time to time by the Servicer, the Seller and the Issuer by a
written instrument signed by each of them, without the consent of the Indenture
Trustee or any of the Noteholders; provided that (i) Seller shall have delivered
                                   --------
to the Indenture Trustee and the Owner Trustee an Officer's Certificate, dated
the date of any such Amendment, stating that Seller reasonably believes that
such amendment will not have an Adverse Effect and (ii) the Rating Agency
Condition shall have been satisfied with respect to any such amendment.
Additionally, notwithstanding the preceding sentence, this Agreement will be
amended by the Servicer and the Issuer at the direction of Seller without the
consent of the Indenture Trustee or any of the Noteholders or Series Enhancers
to add, modify or eliminate such provisions as may be necessary or advisable in
order to enable all or a portion of the Issuer (1) to qualify as, and to permit
an election to be made to cause the Issuer to be treated as, a "financial asset
securitization investment trust" as described in the provisions of Section 860L
of the Code, and (2) to avoid the imposition of state or local income or
franchise taxes imposed on the Issuer's property or its income; provided,
                                                                --------
however, that (A) Seller delivers to the Indenture Trustee and the Owner Trustee
-------
an Officer's Certificate to the effect that the proposed amendments meet the
requirements set forth in this Section, (B) the Rating Agency Condition has been
satisfied, and (C) such amendment does not affect the rights, duties or
obligations of the Indenture Trustee or the Owner Trustee hereunder. The
amendments which Seller may make without the consent of Noteholders or Series
Enhancers pursuant to the preceding sentence may include the addition of a
Seller.

     (b)   This Agreement may also be amended from time to time by the Servicer,
Seller and the Issuer, with the consent of the Noteholders holding more than 66
2/3% of the Outstanding principal amount of the Notes of each Series affected
thereby for which Seller has not delivered an Officer's Certificate stating that
there is no Adverse Effect, 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; provided, however,
                                                          --------  -------
that no such amendment shall (i) reduce in any manner the amount of or delay the
timing of any distributions (changes in Pay Out Events or Events of Default that
decrease the likelihood of the

                                       37

<PAGE>

occurrence thereof shall not be considered delays in the timing of distributions
for purposes of this clause) to be made to Noteholders or deposits of amounts to
be so distributed or the amount available under any Series Enhancement without
the consent of each affected Noteholder, (ii) change the definition of or the
manner of calculating the interest of any Noteholder without the consent of each
affected Noteholder or (iii) reduce the aforesaid percentage required to consent
to any such amendment without the consent of each Noteholder or (iv) adversely
affect the rating of any Series or Class by any Rating Agency without the
consent of the Noteholders of such Series or Class holding more than 66 2/3% of
the Outstanding principal amount of the Notes of such Series or Class affected
thereby.

     (c)   Promptly after the execution of any such amendment or consent (other
than an amendment pursuant to paragraph (a)), the Issuer shall furnish
notification of the substance of such amendment to the Indenture Trustee and
each Noteholder, and the Servicer shall furnish notification of the substance of
such amendment to each Rating Agency and each Series Enhancer.

     (d)   It shall not be necessary for the consent of Noteholders under this
Section 9.1 to approve the particular form of any proposed amendment, but it
-----------
shall be sufficient if such consent shall approve the substance thereof. The
manner of obtaining such consents and of evidencing the authorization of the
execution thereof by Noteholders shall be subject to such reasonable
requirements as the Indenture Trustee may prescribe.

     (e)   Notwithstanding anything in this Section 9.1 to the contrary, no
                                            -----------
amendment may be made to this Agreement which would adversely affect in any
material respect the interests of any Series Enhancer without the consent of
such Series Enhancer.

     (f)   Any Indenture Supplement executed in accordance with the provisions
of Article X of the Indenture shall not be considered an amendment of this
   ---------
Agreement for the purposes of this Section 9.1.
                                   -----------

     (g)   The Noteholders holding 66 2/3% or more of the Outstanding principal
amount of the Notes of each Series or, with respect to any Series with two (2)
or more Classes, of each Class (or, with respect to any default that does not
relate to all Series, 66 2/3% or more of the principal amount of the Outstanding
Notes of each Series to which such default relates or, with respect to any such
Series with two or more Classes, of each Class) may, on behalf of all
Noteholders, waive any default by Seller or the Servicer in the performance of
their obligations hereunder and its consequences, except the failure to make any
distributions required to be made to Noteholders or to make any required
deposits of any amounts to be so distributed. Upon any such waiver of a past
default, such default shall cease to exist, and any default arising therefrom
shall be deemed to have been remedied for every purpose of this Agreement. No
such

                                       38

<PAGE>

waiver shall extend to any subsequent or other default or impair any right
consequent thereon except to the extent expressly so waived.

     (h)  The Owner Trustee may, but shall not be obligated to, enter into any
such amendment which affects the Owner Trustee's rights, duties or immunities
under this Agreement or otherwise. In connection with the execution of any
amendment hereunder, the Owner Trustee shall be entitled to receive the Opinion
of Counsel described in Section 9.2(d).
                        --------------

     Section 9.2.   Protection of Right, Title and Interest to Issuer.
                    -------------------------------------------------

     (a)  Seller shall cause this Agreement, all amendments and supplements
hereto and all financing statements and continuation statements and any other
necessary documents covering the Indenture Trustee's and the Issuer's right,
title and interest to the Issuer to be promptly recorded, registered and filed,
and at all times to be kept recorded, registered and filed, all in such manner
and in such places as may be required by law fully to preserve and protect the
right, title and interest of the Indenture Trustee, Noteholders and the Issuer
hereunder to all property comprising the Issuer. Seller shall deliver to the
Indenture Trustee file-stamped copies of, or filing receipts for, any document
recorded, registered or filed as provided above, as soon as available following
such recording, registration or filing. Seller shall cooperate fully with the
Servicer in connection with the obligations set forth above and will execute any
and all documents reasonably required to fulfill the intent of this paragraph.

     (b)  Within thirty (30) days after the Seller makes any change in its name,
identity or corporate structure which would make any financing statement or
continuation statement filed in accordance with paragraph (a) seriously
misleading within the meaning of Section 9-506 (or any comparable provision) of
the applicable UCC, the Seller shall give the Indenture Trustee notice of any
such change and shall file such financing statements or amendments as may be
necessary to continue the perfection of the Issuer's security interest or
ownership interest in the Receivables and the proceeds thereof.

     (c)  Each of the Seller and the Servicer shall give the Indenture Trustee
prompt notice of any relocation of its chief principal executive office or any
change in the jurisdiction under whose laws it is organized and whether, as a
result of such relocation or change, the applicable provisions of the applicable
UCC would require the filing of any amendment of any previously filed financing
or continuation statement or of any new financing statement and shall file such
financing statements or amendments as may be necessary to perfect or to continue
the perfection of the Issuer's security interest in the Receivables and the
proceeds thereof. Each of Seller and Servicer shall at all times maintain its
chief principal executive offices within the United States and shall at all
times be organized under the laws of a jurisdiction located within the United
States.

                                       39

<PAGE>

     (d)   Seller shall deliver to the Indenture Trustee (i) upon the execution
and delivery of each amendment of this Agreement, an Opinion of Counsel to the
effect specified in Exhibit F-1; (ii) on each date specified in Section
                    -----------                                 -------
2.6(c)(vii) with respect to Additional Accounts added pursuant to Section 2.6(a)
-----------                                                       --------------
or (b), an Opinion of Counsel substantially in the form of Exhibit F-2; and
   ---                                                     -----------
(iii) on or before April 30 of each year following the year in which the FCMT
Termination Date occurs, an Opinion of Counsel substantially in the form of
Exhibit F-3.
-----------

     Section 9.3. GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE
                  -------------
WITH THE LAWS OF THE STATE OF ILLINOIS, WITHOUT REFERENCE TO ITS CONFLICT OF LAW
PROVISIONS, AND OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL
BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     Section 9.4. Notices; Payments.
                  -----------------

     (a)  All demands, notices, instructions, directions and communications
(collectively, "Notices") under this Agreement shall be in writing and shall be
                -------
deemed to have been duly given if personally delivered at, mailed by registered
mail, return receipt requested, or sent by facsimile transmission (i) in the
case of Seller, to First Consumers Credit Corporation, 400 West 9th Street,
Suite 302D, Wilmington, Delaware, 19801, Attn.: Treasurer, with a copy to
Spiegel, Inc., 3500 Lacey Road, Downers Grove, Illinois, 60515-5452, Attn.:
Treasurer, (ii) and the Servicer, to First Consumers National Bank, 9300 S.W.
Gemini Drive, Beaverton, Oregon 97008, Attn: President, (iii) in the case of the
Issuer or the Owner Trustee, to the Corporate Trust Office, Attn: Corporate
Trust & Agency Services, with a copy to the Administrator, (iv) in the case of
the Rating Agency for a particular Series, the address, if any, specified in the
Indenture Supplement relating to such Series, and (v) to any other Person as
specified in the Indenture or any Indenture Supplement; or, as to each party, at
such other address or facsimile number as shall be designated by such party in a
written notice to each other party.

     (b)  Any Notice required or permitted to be given to a Holder of Registered
Notes shall be given by first-class mail, postage prepaid, at the address of
such Holder as shown in the Note Register. Any Notice so mailed within the time
prescribed in this Agreement shall be conclusively presumed to have been duly
given, whether or not the Noteholder receives such Notice. In addition, in the
case of any Series or Class with respect to which any Notes are outstanding, any
Notice required or permitted to be given to Noteholders of such Series or Class
shall be published in an Authorized Newspaper within the time period prescribed
in this Agreement.

     Section 9.5. Severability of Provisions. If any one or more of the
                  --------------------------
covenants, agreements, provisions or terms of this Agreement shall for any
reason whatsoever be held invalid, then such provisions shall be deemed
severable from the remaining

                                       40

<PAGE>

provisions of this Agreement and shall in no way affect the validity or
enforceability of the remaining provisions or of the Notes or the rights of the
Noteholders.

     Section 9.6.   Further Assurances. Seller and the Servicer agree to do and
                    ------------------
perform, from time to time, any and all acts and to execute any and all further
instruments required or reasonably requested by the Owner Trustee and the
Indenture Trustee more fully to effect the purposes of this Agreement, including
the execution of any financing statements or continuation statements relating to
the Receivables for filing under the provisions of the UCC of any applicable
jurisdiction.

     Section 9.7.   No Waiver; Cumulative Remedies. No failure to exercise and
                    ------------------------------
no delay in exercising, on the part of the Owner Trustee, the Indenture Trustee
or the Noteholders, any right, remedy, power or privilege under this Agreement
shall operate as a waiver thereof; nor shall any single or partial exercise of
any right, remedy, power or privilege under this Agreement preclude any other or
further exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights, remedies, powers and privileges provided under this
Agreement are cumulative and not exhaustive of any rights, remedies, powers and
privileges provided by law.

     Section 9.8.   Counterparts. This Agreement may be executed in two or more
                    ------------
counterparts (and by different parties on separate counterparts), each of which
shall be an original, but all of which together shall constitute one and the
same instrument.

     Section 9.9.   Third-Party Beneficiaries. This Agreement will inure to the
                    -------------------------
benefit of and be binding upon the parties hereto, the Indenture Trustee, the
Noteholders, and any Series Enhancer. Except as otherwise expressly provided in
this Agreement, no other Person will have any right or obligation hereunder.

     Section 9.10.  Actions by Noteholders.
                    ----------------------

     (a)   Wherever in this Agreement a provision is made that an action may be
taken or a Notice given by Noteholders, such action or Notice may be taken or
given by any Noteholder, unless such provision requires a specific percentage of
Noteholders.

     (b)   Any Notice, request, authorization, direction, consent, waiver or
other act by the Noteholder shall bind such Holder and every subsequent Holder
of such Note and of any Note issued upon the registration of transfer thereof or
in exchange therefor or in lieu thereof in respect of anything done or omitted
to be done by the Owner Trustee, Seller or the Servicer in reliance thereon,
whether or not notation of such action is made upon such Note.

     Section 9.11.  Rule 144A Information. For so long as any of the Notes of
                    ---------------------
any Series or Class are "restricted securities" within the meaning of Rule
144(a)(3) under the Securities Act, each of Seller, the Owner Trustee, the
Indenture Trustee, the

                                       41

<PAGE>

Servicer and any Series Enhancer agree to cooperate with each other to provide
to any Noteholders of such Series or Class and to any prospective purchaser of
Notes designated by such Noteholder, upon the request of such Noteholder or
prospective purchaser, any information required to be provided to such holder or
prospective purchaser to satisfy the condition set forth in Rule 144A(d)(4)
under the Securities Act.

     Section 9.12.  Merger and Integration. Except as specifically stated
                    ----------------------
otherwise herein, this Agreement sets forth the entire understanding of the
parties relating to the subject matter hereof, and all prior understandings,
written or oral, are superseded by this Agreement. This Agreement may not be
modified, amended, waived or supplemented except as provided herein.

     Section 9.13.  No Bankruptcy Petition. (a) Each of Seller and Servicer,
                    ----------------------
severally and not jointly, hereby covenants and agrees that, prior to the date
which is one (1) year and one (1) day after the payment in full of all Notes, it
will not institute against, or join any other Person in instituting against, the
Issuer any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings or other similar proceeding under the laws of the United States or
any state of the United States.

     (b)  Each of Servicer and Issuer, severally and not jointly, hereby
covenants and agrees that, prior to the date which is one (1) year and one (1)
day after the payment in full of all Notes, it will not institute against, or
join any other Person in instituting against, the Seller any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings or other
similar proceeding under the laws of the United States or any state of the
United States.

     Section 9.14.  Rights of Indenture Trustee. The Indenture Trustee shall
                    ---------------------------
have herein the same rights, protections, indemnities and immunities as
specified in the Indenture.

     Section 9.15.  Rights of the Owner Trustee. Each of the parties hereto
                    ---------------------------
acknowledges and agrees that this Agreement is being executed and delivered by
Bankers Trust Company not individually but solely and exclusively in its
capacity as Owner Trustee on behalf of First Consumers Credit Card Master Note
Trust for the purpose and with the intention of binding First Consumers Credit
Card Master Note Trust. No obligations or liabilities hereunder shall run
against Bankers Trust Company in its individual capacity or against its
properties or assets.

     Section 9.16.  Limited Recourse. Notwithstanding anything to the contrary
                    ----------------
in this Agreement or any other Transaction Document, with respect to provisions
hereof in which the Seller has agreed that certain actions will be taken at the
Seller's expense, payment of any such expense shall only be made to the extent
the Seller has funds available for such purpose after amounts payable to
Securityholders (as defined in the Receivables Purchase Agreement) have been
paid in full. Each party hereto agrees

                                       42

<PAGE>

that the failure to make such payments beyond the extent available shall not
give rise to any claim against the Seller.

                                       43

<PAGE>

     IN WITNESS WHEREOF, Seller, the Servicer and the Issuer have caused this
Transfer and Servicing Agreement to be duly executed by their respective
officers as of the day and year first above written.

                                           FIRST CONSUMERS CREDIT
                                           CORPORATION, as Seller

                                           By: /s/ John R. Steele
                                               ------------------
                                           Name: John R. Steele
                                           Title: Treasurer

                                           FIRST CONSUMERS NATIONAL
                                           BANK, as Servicer

                                           By: /s/ John R. Steele
                                               ------------------
                                           Name: John R. Steele
                                           Title: Treasurer

                                           FIRST CONSUMERS CREDIT CARD
                                           MASTER NOTE TRUST, Issuer

                                           By: BANKERS TRUST COMPANY,
                                           not in its individual capacity but
                                           solely as Owner Trustee on behalf of
                                           the Issuer

                                           By: /s/ Eileen M. Hughes
                                               --------------------
                                           Name:  Eileen M. Hughes
                                           Title: Vice President

Acknowledged and Accepted:

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

By: /s/ Greg Anderson
    -----------------
Name: Greg Anderson
Title: Authorized Agent

First Consumers Credit Card Master Note Trust
Transfer and Servicing Agreement Signature Page

<PAGE>

                                    EXHIBIT A
                                       to
                        TRANSFER AND SERVICING AGREEMENT

                        FORM OF ASSIGNMENT OF RECEIVABLES
                             IN ADDITIONAL ACCOUNTS

     (As required by Section 2.6 of the Transfer and Servicing Agreement)
                     -----------

ASSIGNMENT No. __ OF RECEIVABLES IN ADDITIONAL ACCOUNTS dated as of
_____________, by and among FIRST CONSUMERS CREDIT CORPORATION, a Delaware
corporation, as Seller (the "Seller") FIRST CONSUMERS NATIONAL BANK, a national
                             ------
banking association, as Servicer (the "Servicer") and FIRST CONSUMERS CREDIT
                                       --------
CARD MASTER NOTE TRUST (the "Issuer"), pursuant to the Transfer and Servicing
                             ------
Agreement referred to below.

                                   WITNESSETH

WHEREAS, the Seller, the Servicer and the Issuer are parties to the Transfer and
Servicing Agreement, dated as of March 1, 2001, and amended and restated as of
December 31, 2001 (the "Agreement");
                        ---------

WHEREAS, pursuant to the Agreement, the Seller wishes to designate Additional
Accounts to be included as Accounts and to convey the Receivables of such
Additional Accounts (as each such term is defined in the Agreement), whether now
existing or hereafter created, to the Issuer; and

WHEREAS, the Issuer is willing to accept such designation and conveyance subject
to the terms and conditions hereof;

     NOW, THEREFORE, the Seller, the Servicer and the Issuer hereby agree as
follows:

1.   Defined Terms. All capitalized terms used herein shall have the meanings
     -------------
ascribed to them in the Agreement unless otherwise defined herein.

"Addition Date" means, with respect to the Additional Accounts designated
 -------------
hereby, ____________, 200__.

"Notice Date" means, with respect to the Additional Accounts designated hereby,
 -----------
____________, ____, (which shall be a date on or prior to the fifth Business Day
prior to the Addition Date).

2.   Designation of Additional Accounts. On or before the date hereof, the
     ----------------------------------
Seller will deliver to the Owner Trustee a computer file or microfiche list
containing a true and complete schedule identifying all such Additional Accounts
(the "Additional
      ----------

                                  Exhibit A-1

<PAGE>

Accounts") specifying for each such Additional Account, as of the Notice Date,
--------
its account number, the aggregate amount outstanding in such Account and the
aggregate amount of Principal Receivables outstanding in such Account, which
computer file or microfiche list shall supplement Schedule 1 to the Agreement.
                                                  ----------

3.   Conveyance of Receivables. (a) The Seller does hereby transfer, assign, set
     -------------------------
over and otherwise convey, without recourse except as set forth in the Transfer
and Servicing Agreement, to the Issuer, all its right, title and interest in, to
and under the Receivables of such Additional Accounts existing at the close of
business on the Notice Date and thereafter created from time to time until the
termination of the Issuer, all Recoveries related thereto, all monies due or to
become due and all amounts received or receivable with respect thereto and all
proceeds thereof. The foregoing does not constitute and is not intended to
result in the creation or assumption by the Issuer, the Owner Trustee, the
Indenture Trustee, any Noteholders or any Series Enhancer of any obligation of
the Servicer, the Seller or any other Person in connection with the Accounts,
the Receivables or under any agreement or instrument relating thereto, including
any obligation to Obligors, merchant banks, merchants or clearance systems.

     (b) The Seller agrees to record and file, at its own expense, financing
statements (and continuation statements when applicable) with respect to the
Receivables in Additional Accounts existing on the Notice Date and thereafter
created meeting the requirements of applicable state law in such manner and in
such jurisdictions as are necessary to perfect, and maintain perfection of, the
sale and assignment of its interest in such Receivables to the Issuer, and to
deliver a file-stamped copy of each such financing statement or other evidence
of such filing to the Owner Trustee on or prior to the Addition Date. The Owner
Trustee shall be under no obligation whatsoever to file such financing or
continuation statements or to make any other filing under the applicable UCC in
connection with such sale and assignment.

     (c) In connection with such sale, the Seller further agrees, at its own
expense, on or prior to the date of this Assignment, to indicate in the
appropriate computer files that Receivables created in connection with the
Additional Accounts and designated hereby have been conveyed to the Issuer
pursuant to the Agreement and this Assignment.

     (d) The Seller does hereby grant to the Issuer a security interest in all
of its right, title and interest, whether now owned or hereafter acquired, in
and to the Receivables in the Additional Accounts existing on the Notice Date
and thereafter created, all Recoveries related thereto, all monies due or to
become due and all amounts received or receivable with respect thereto, all
money, accounts, general intangibles, chattel paper, instruments, documents,
goods, investment property, deposit accounts, certificates of deposit, letters
of credit, and advices of credit consisting of, arising from or related to the
foregoing, and all proceeds thereof. This Assignment constitutes a security
agreement under the applicable UCC.

                                  Exhibit A-2

<PAGE>

4.   Acceptance by Issuer. The Issuer hereby acknowledges its acceptance of all
     --------------------
right, title and interest to the property, existing on the Notice Date and
thereafter created, conveyed to the Issuer pursuant to Section 3(a) of this
                                                       ------------
Assignment. The Issuer further acknowledges that, prior to or simultaneously
with the execution and delivery of this Assignment, the Seller delivered to the
Owner Trustee the computer file or microfiche list described in Section 2 of
                                                                ---------
this Assignment.

5.   Representations and Warranties of the Seller. The Seller hereby represents
     --------------------------------------------
and warrants to the Issuer as of the Addition Date:

     (a) Legal Valid and Binding Obligation. This Assignment constitutes a
         ----------------------------------
legal, valid and binding obligation of the Seller enforceable against the Seller
in accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, receivership or conservatorship, insolvency,
reorganization, moratorium or other similar laws now or hereafter in effect
affecting the enforcement of creditors' rights in general and the rights of
creditors of national banking associations and except as such enforceability may
be limited by general principles of equity (whether considered in a suit at law
or in equity);

     (b) Schedule 1. Schedule 1 to this Assignment and the computer file or
         ----------
microfiche list delivered pursuant to Section 2 of this Assignment is an
                                      ---------
accurate and complete listing in all material respects of all the Additional
Accounts as of the Addition Date and the information contained therein with
respect to the identity of such Additional Accounts and the Receivables existing
thereunder is true and correct in all material respects as of the Addition Date;

     (c) Eligibility of Accounts. Each Additional Account designated hereby is
         -----------------------
an Eligible Account;

     (d) Selection Procedures. No selection procedures believed by the Seller to
         ---------------------
be materially adverse to the interests of the Noteholders were utilized in
selecting the Additional Accounts designated hereby;

     (e) Insolvency. The Seller is not insolvent and, after giving effect to the
         ----------
conveyance set forth in Section 3 of this Assignment, will not be insolvent;
                        ---------

     (f) Security Interest. This Assignment constitutes (i) a valid transfer and
         -----------------
assignment to the Issuer of all right, title and interest of the Seller in and
to Receivables now existing and hereafter created in the Additional Accounts
designated hereby, and all proceeds (as defined in the UCC as in effect in the
applicable jurisdiction) of such Receivables and Insurance Proceeds relating
thereto, and such Receivables and any Collections, Recoveries and other proceeds
thereof and Insurance Proceeds relating thereto will be held by the Issuer free
and clear of any Lien of any Person except for (x) Liens permitted under Section
                                                                         -------
2.5(b) of the Transfer and Servicing Agreement and (y) the interest of the
------
Seller as holder of the

                                  Exhibit A-3

<PAGE>

Collateral Certificate and/or (ii) it constitutes a grant of a security interest
(as defined in the UCC as in effect in the applicable jurisdiction) in such
property to the Issuer, which is enforceable with respect to the existing
Receivables in the Additional Accounts designated hereby, the Collections,
Recoveries and other proceeds (as defined in the UCC as in effect in the
applicable jurisdiction) thereof and Insurance Proceeds relating thereto upon
the conveyance of such Receivables to the Issuer, and which will be enforceable
with respect to the Receivables thereafter created in respect of the Additional
Accounts designated hereby, the Collections, Recoveries and other proceeds (as
defined in the UCC as in effect in the applicable jurisdiction) thereof and
Insurance Proceeds relating thereto, upon such creation; and (iii) if this
Assignment constitutes the grant of a security interest to the Issuer in such
property, upon the filing of a financing statement described in Section 3 of
                                                                ---------
this Assignment with respect to the Additional Accounts designated hereby and in
the case of the Receivables of such Additional Accounts thereafter created and
the Collections, Recoveries and other proceeds (as defined in the UCC as in
effect in the applicable jurisdiction) thereof, and Insurance Proceeds relating
to such Receivables, upon such creation, the Issuer shall have a first priority
perfected security interest in such property, except for Liens permitted under
Section 2.5(b) of the Transfer and Servicing Agreement, the interest of the
--------------
Seller as holder of the Collateral Certificate and the Seller's right to receive
interest accruing on, and investment earnings in respect of, the Collection
Subaccount and any Series Account as provided in the Transfer and Servicing
Agreement.

     (g) Notice has been given to each Rating Agency and to each Enhancement
Provider as required under Section 2.7(d) of the Transfer and Servicing
                           --------------
Agreement.

6.   Conditions Precedent. The acceptance of the Owner Trustee set forth in
     --------------------
Section 4 above and the amendment of the Transfer and Servicing Agreement set
---------
forth in Section 7 below are subject to the satisfaction, on or prior to the
         ---------
Addition Date, of the following conditions precedent:

     (a) Officer's Certificate. The Seller shall have delivered to the Owner
         ---------------------
Trustee a certificate of a Vice President or more senior officer, certifying
that (i) all requirements set forth in Section 2.6 of the Transfer and Servicing
                                       -----------
Agreement for designating Additional Accounts and conveying the Principal
Receivables of such Accounts, whether now existing or hereafter created, have
been satisfied and (ii) each of the representations and warranties made by the
Seller in Section 5 is true and correct as of the Addition Date. The Owner
          ---------
Trustee may conclusively rely on such Officer's Certificate, shall have no duty
to make inquiries with regard to the matters set forth therein, and shall incur
no liability in so relying.

     (b) Opinion of Counsel. The Seller shall have delivered to the Owner
         ------------------
Trustee an Opinion of Counsel with respect to the Additional Accounts designated
hereby substantially in the form of Exhibit F-2 to the Agreement.
                                    -----------

                                  Exhibit A-4

<PAGE>

     (c) Additional Information. The Seller shall have delivered to the Owner
         ----------------------
Trustee such information as was reasonably requested by the Owner Trustee to
satisfy itself as to the accuracy of the representation and warranty set forth
in Section 5(d) to this Assignment.
   ------------

7.   Amendment of the Transfer and Servicing Agreement. The Transfer and
     -------------------------------------------------
Servicing Agreement is hereby amended to provide that all references therein to
the "Transfer and Servicing Agreement", to "this Agreement" and "herein" shall
be deemed from and after the Addition Date to be a dual reference to the
Transfer and Servicing Agreement as supplemented by this Assignment. Except as
expressly amended hereby, all of the representations, warranties, terms,
covenants and conditions of the Transfer and Servicing Agreement shall remain
unamended and shall continue to be, and shall remain, in full force and effect
in accordance with its terms and except as expressly provided herein shall not
constitute or be deemed to constitute a waiver of compliance with or a consent
to noncompliance with any term or provision of the Transfer and Servicing
Agreement.

8.   Counterparts. This Assignment may be executed in two or more counterparts
     ------------
(and by different parties on separate counterparts), each of which shall be an
original, but all of which together shall constitute one and the same
instrument.

9.   Rights of the Owner Trustee. Each of the parties hereto acknowledges and
     ---------------------------
agrees that this Agreement is being executed and delivered by Bankers Trust
Company not individually but solely and exclusively in its capacity as Owner
Trustee on behalf of First Consumers Credit Card Master Note Trust for the
purpose and with the intention of binding First Consumers Credit Card Master
Note Trust. No obligations or liabilities hereunder shall run against Bankers
Trust Company in its individual capacity or against its properties or assets.

10.  No Bankruptcy Petition. (a) Each of Seller and Servicer, severally and not
     ----------------------
jointly, hereby covenants and agrees that, prior to the date which is one (1)
year and one (1) day after the payment in full of all Notes, it will not
institute against, or join any other Person in instituting against, the Issuer
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings or other similar proceeding under the laws of the United States or
any state of the United States.

(b) Each of Servicer and Issuer, severally and not jointly, hereby covenants and
agrees that, prior to the date which is one (1) year and one (1) day after the
payment in full of all Notes, it will not institute against, or join any other
Person in instituting against, the Seller any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings or other similar proceeding
under the laws of the United States or any state of the United States.

                                  Exhibit A-5

<PAGE>

IN WITNESS WHEREOF, the undersigned have caused this Assignment of Receivables
in Additional Accounts to be duly executed and delivered by their respective
duly authorized officers on the day and year first above written.

                                   FIRST CONSUMERS CREDIT
                                   CORPORATION, Seller

                                   By:__________________________________________
                                   Name:
                                   Title:

                                   FIRST CONSUMERS NATIONAL
                                   BANK, Servicer

                                   By:__________________________________________
                                   Name:
                                   Title:

                                   FIRST CONSUMERS CREDIT CARD
                                   MASTER NOTE TRUST,
                                   Issuer

                                   By: BANKERS TRUST COMPANY,
                                   not in its individual capacity but solely on
                                   behalf of the Issuer

                                   By:__________________________________________
                                   Name:
                                   Title:

                                  Exhibit A-6

<PAGE>

                                   Schedule 1
                          to Assignment of Receivables
                             in Additional Accounts

                               ADDITIONAL ACCOUNTS
                               -------------------

                                  Exhibit A-7

<PAGE>

                                    EXHIBIT B
                                       to
                        TRANSFER AND SERVICING AGREEMENT

                       FORM OF REASSIGNMENT OF RECEIVABLES
                               IN REMOVED ACCOUNTS

     (As required by Section 2.7 of the Transfer and Servicing Agreement)
                     -----------

REASSIGNMENT No. _______ OF RECEIVABLES dated as of _________, by and among
FIRST CONSUMERS CREDIT CORPORATION, a Delaware corporation, as Seller (the
"Seller"), FIRST CONSUMERS NATIONAL BANK, a national banking association, as
 ------
Servicer (the "Servicer"), and FIRST CONSUMERS CREDIT CARD MASTER NOTE TRUST
(the "Issuer"), pursuant to the Transfer and Servicing Agreement referred to
      ------
below.

                                   WITNESSETH:

WHEREAS the Seller, the Servicer and the Issuer are parties to the Transfer and
Servicing Agreement, dated as of March 1, 2001, and amended and restated as of
December 31, 2001 (the "Agreement");
                        ---------

WHEREAS pursuant to the Agreement, the Seller wishes to remove from the Issuer
all Receivables owned by the Issuer in certain designated Accounts (the "Removed
                                                                         -------
Accounts") and to cause the Issuer to reconvey the Receivables of such Removed
--------
Accounts, whether now existing or hereafter created, from the Issuer to the
Seller; and

WHEREAS the Issuer is willing to accept such designation and to reconvey the
Receivables in the Removed Accounts subject to the terms and conditions hereof;

NOW, THEREFORE, the Seller and the Issuer hereby agree as follows:

1.   Defined Terms. All terms defined in the Agreement and used herein shall
     -------------
have such defined meanings when used herein, unless otherwise defined herein.

"Removal Date" means, with respect to the Removed Accounts designated hereby,
 ------------
___________, ____.

"Removal Notice Date" means, with respect to the Removed Accounts
 -------------------
______________, ____, (which shall be a date on or prior to the fifth Business
Day prior to the Removal Date).

2.   Designation of Removed Accounts. On or before the date that is ten (10)
     -------------------------------
Business Days after the Removal Date, the Seller will deliver to the Owner
Trustee a computer file or microfiche list containing a true and complete
schedule identifying

                                  Exhibit B-1

<PAGE>

all Accounts the Receivables of which are being removed from the Issuer,
specifying for each such Account, as of the Removal Notice Date, its account
number, the aggregate amount outstanding in such Account and the aggregate
amount of Principal Receivables in such Account, which computer file or
microfiche list shall supplement Schedule 1 to the Agreement.
                                 ----------

3.   Conveyance of Receivables. (a) The Issuer does hereby transfer, assign, set
     -------------------------
over and otherwise convey to the Seller, without recourse, on and after the
Removal Date, all right, title and interest of the Issuer in, to and under the
Receivables existing at the close of business on the Removal Notice Date and
thereafter created from time to time in the Removed Accounts designated hereby,
all Recoveries related thereto, all monies due or to become due and all amounts
received or receivable with respect thereto and all proceeds thereof.

(b) In connection with such transfer, the Issuer agrees to execute and deliver
to the Seller on or prior to the date this Reassignment is delivered, applicable
termination statements prepared by the Seller with respect to the Receivables
existing at the close of business on the Removal Notice Date and thereafter
created from time to time in the Removed Accounts reassigned hereby and the
proceeds thereof evidencing the release by the Issuer of its interest in the
Receivables in the Removed Accounts, and meeting the requirements of applicable
state law, in such manner and such jurisdictions as are necessary to terminate
such interest.

4.   Representations and Warranties of the Seller. The Seller hereby represents
     --------------------------------------------
and warrants to the Issuer as of the Removal Date:

(a)  Legal Valid and Binding Obligation. This Reassignment Agreement constitutes
     ----------------------------------
a legal, valid and binding obligation of the Seller enforceable against the
Seller in accordance with its terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws now or hereafter in effect affecting the enforcement of
creditors' rights in general and except as such enforceability may be limited by
general principles of equity (whether considered in a suit at law or in equity);
and

(b)  Selection Procedures. No selection procedures believed by the Seller to be
     --------------------
materially adverse to the interests of the Noteholders were utilized in
selecting the Removed Accounts designated hereby.

5.   Condition Precedent. The amendment of the Transfer and Servicing Agreement
     -------------------
set forth in Section 7 hereof is subject to the satisfaction, on or prior to the
             ---------
Removal Date, of the following condition precedent:

6.   Officers' Certificate. The Seller shall have delivered to the Owner Trustee
     ---------------------
an Officers' Certificate certifying that (i) as of the Removal Date, all
requirements set forth in Section 2.5 of the Transfer and Servicing Agreement
                          -----------
for designating Removed

                                  Exhibit B-2

<PAGE>

Accounts and reconveying the Receivables of such Removed Accounts, whether now
existing or hereafter created, have been satisfied, and (ii) each of the
representations and warranties made by the Seller in Section 5 hereof is true
                                                     ---------
and correct as of the Removal Date. The Owner Trustee may conclusively rely on
such Officer's Certificate, shall have no duty to make inquiries with regard to
the matters set forth therein and shall incur no liability in so relying.

7.   Amendment of the Transfer and Servicing Agreement. The Transfer and
     -------------------------------------------------
Servicing Agreement is hereby amended to provide that all references therein to
the "Transfer and Servicing Agreement", to "this Agreement" and "herein" shall
be deemed from and after the Removal Date to be a dual reference to the Transfer
and Servicing Agreement as supplemented by this Reassignment Agreement. Except
as expressly amended hereby, all of the representations, warranties, terms,
covenants and conditions of the Transfer and Servicing Agreement shall remain
unamended and shall continue to be, and shall remain, in full force and effect
in accordance with its terms and except as expressly provided herein shall not
constitute or be deemed to constitute a waiver of compliance with or a consent
to non-compliance with any term or provision of the Transfer and Servicing
Agreement.

8.   Counterparts. This Reassignment Agreement may be executed in two or more
     ------------
counterparts (and by different parties on separate counterparts), each of which
shall be an original, but all of which together shall constitute one and the
same instrument.

9.   Rights of the Owner Trustee. Each of the parties hereto acknowledges and
     ---------------------------
agrees that this Agreement is being executed and delivered by Bankers Trust
Company not individually but solely and exclusively in its capacity as Owner
Trustee on behalf of First Consumers Credit Card Master Note Trust for the
purpose and with the intention of binding First Consumers Credit Card Master
Note Trust. No obligations or liabilities hereunder shall run against Bankers
Trust Company in its individual capacity or against its properties or assets.

10.  No Bankruptcy Petition. (a) Each of Seller and Servicer, severally and not
     ----------------------
jointly, hereby covenants and agrees that, prior to the date which is one (1)
year and one (1) day after the payment in full of all Notes, it will not
institute against, or join any other Person in instituting against, the Issuer
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings or other similar proceeding under the laws of the United States or
any state of the United States.

(b) Each of Servicer and Issuer, severally and not jointly, hereby covenants and
agrees that, prior to the date which is one (1) year and one (1) day after the
payment in full of all Notes, it will not institute against, or join any other
Person in instituting against, the Seller any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings or other similar proceeding
under the laws of the United States or any state of the United States.

                                  Exhibit B-3

<PAGE>

IN WITNESS WHEREOF, the undersigned have caused this Reassignment Agreement to
be duly executed and delivered by their respective duly authorized officers on
the day and year first above written.

                                   FIRST CONSUMERS CREDIT
                                   CORPORATION, Seller

                                   By:__________________________________________
                                   Name:
                                   Title:

                                   FIRST CONSUMERS NATIONAL
                                   BANK, Servicer

                                   By:__________________________________________
                                   Name:
                                   Title:

                                   FIRST CONSUMERS CREDIT CARD
                                   MASTER NOTE TRUST, Issuer

                                   By: BANKERS TRUST COMPANY,
                                   not in its individual capacity but solely on
                                   behalf of the Issuer

                                   By:__________________________________________
                                   Name:
                                   Title:

                                  Exhibit B-4

<PAGE>

                                   Schedule 1
                            to Reassignment Agreement

                                REMOVED ACCOUNTS
                                ----------------

                                  Exhibit B-5

<PAGE>

                                    EXHIBIT C
                                       to
                        TRANSFER AND SERVICING AGREEMENT

                     FORM OF MONTHLY SERVICER'S CERTIFICATE

 The undersigned, a duly authorized representative of First Consumers National
Bank ("FCNB"), as Servicer pursuant to the Transfer and Servicing Agreement
       ----
dated as of March 1, 2001, and amended and restated as of December 31, 2001 (the
"Transfer and Servicing Agreement") among FCNB, First Consumers Credit
 --------------------------------
Corporation, and First Consumers Credit Card Master Note Trust, does hereby
certify as follows:

1.     Capitalized terms used in this Certificate
       have their respective meanings set forth in
       the Transfer and Servicing Agreement;
       provided that the "preceding Monthly
       --------           -----------------
       Period" shall mean the Monthly Period
       ------
       immediately preceding the calendar month in
       which this Certificate is delivered. This
       Certificate is delivered pursuant to
       Section 3.4(b) of the Transfer and
       --------------
       Servicing Agreement. References herein to
       certain sections and subsections are
       references to the respective sections and
       subsections of the Transfer and Servicing
       Agreement.

2.     FCNB is the Servicer under the Transfer and
       Servicing Agreement.

3.     The undersigned is a Servicing Officer.

4.     The date of this Certificate is a
       Determination Date under the Transfer and
       Servicing Agreement.

5.     The aggregate amount of Collections
       processed during the preceding Monthly
       Period was equal to $____________

6.     The aggregate amount of the Allocation
       Percentage of Collections of Principal
       Receivables processed by the Servicer
       pursuant to Article VIII of the Indenture
       during the preceding Monthly Period was
       equal to $______________

                                  Exhibit C-1

<PAGE>

7.     The aggregate amount of the Allocation
       Percentage of Finance Charge Collections
       processed by the Servicer pursuant to
       Article VIII of the Indenture during the
       preceding Monthly Period was equal to $
       ____________

8.     The Default Amount for the preceding
       Monthly Period was equal to $____________

9.     Net Recoveries for the preceding Monthly
       Period was equal to $____________

10.    The Portfolio Yield for the preceding
       Monthly Period for each of the following
       Series was equal to:
       Series __________$_____________
       Series __________$_____________

11.    The Base Rate for the preceding Monthly
       Period for each of the following Series was
       equal to:
       Series __________$_____________
       Series __________$_____________

12.    The aggregate amount of Receivables as of
       the last day of the preceding Monthly
       Period was equal to $______________

13.    The aggregate amount of funds on deposit in
       the Collection Account (or any Subaccount
       thereof) and each other Series Account with
       respect to Collections processed as of the
       end of the last day of the preceding
       Monthly Period was equal to $____________

14.    The aggregate amount, if any, of
       withdrawals, drawings or payments under any
       Enhancement with respect to each Series
       made with respect to the preceding Monthly
       Period was equal to $____________

                                  Exhibit C-2

<PAGE>

15.    The aggregate amount payable to the
       Noteholders on the succeeding Distribution
       Date in respect of interest is equal to
       $____________

16.    The aggregate amount payable to the
       Noteholders on the succeeding Distribution
       Date in respect of principal is equal to
       $____________

                                  Exhibit C-3

<PAGE>

                                    EXHIBIT D
                                       to
                        TRANSFER AND SERVICING AGREEMENT

                      FORM OF ANNUAL SERVICER'S CERTIFICATE

      The undersigned, a duly authorized representative of First Consumers
National Bank ("FCNB") as Servicer pursuant to the Transfer and Servicing
                ----
Agreement dated as of March 1, 2001, and amended and restated as of December 31,
2001 (the "Transfer and Servicing Agreement") among FCNB, First Consumers Credit
           --------------------------------
Corporation and Spiegel Credit Card Master Note Trust, does hereby certify that:

      1.    FCNB is Servicer under the Transfer and Servicing Agreement.

      2.    The undersigned is duly authorized pursuant to the Transfer and
Servicing Agreement to execute and deliver this Certificate to the Owner
Trustee.

      3.    This Certificate is delivered pursuant to Section 3.5 of the
                                                      -----------
Transfer and Servicing Agreement.

      4.    A review of the activities of the Servicer during the calendar year
ended December 31, 200_ was conducted under my supervision.

      5.    Based on such review, the Servicer has, to the best of my knowledge,
fully performed all its obligations under the Transfer and Servicing Agreement
throughout such calendar year and no default in the performance of such
obligations has occurred or is continuing except as set forth in paragraph 6
below.

      6.    The following is a description of each default in the performance of
the Servicer's obligations under the provisions of the Transfer and Servicing
Agreement known to me to have been made during the calendar year ended December
31, 200_, which sets forth in detail the (i) nature of each such default, (ii)
the action taken by the Servicer, if any, to remedy each such default and (iii)
the current status of each such default: [If applicable, insert "None."]

                                  Exhibit D-1

<PAGE>

      IN WITNESS WHEREOF, the undersigned has duly executed this Certificate
this day of ______, 200 ___.

                                      ___________________________________
                                            Name:
                                            Title:

                                  Exhibit D-2

<PAGE>

                                    EXHIBIT E
                                       to
                        TRANSFER AND SERVICING AGREEMENT

                 FORM OF ANNUAL INDEPENDENT PUBLIC ACCOUNTANTS'
                                SERVICING REPORT

First Consumers National Bank
9300 S. W. Gemini Drive
Beaverton, Oregon  97005

First Consumers Credit Corporation
400 West 9/th/ Street, Suite 302D
Wilmington, Delaware, 19801

The Bank of New York
2 North LaSalle Street, Suite 1020
Chicago, Illinois  60602

The Management of First Consumers National Bank, First Consumers Credit
Corporation and The Bank of New York:

We have performed the procedures enumerated below, which were agreed to by the
management of First Consumers National Bank ("FCNB"), First Consumers Credit
                                              ----
Corporation ("FCCC") and The Bank of New York (the "Trustee"), solely to assist
              ----                                  -------
you in evaluating the Monthly Noteholder's Statements and the Monthly Servicer
Certificates (collectively, the Certificates) issued pursuant to the Transfer
and Servicing Agreement dated as of December 31, 2001 among FCNB, FCCC and First
Consumers Credit Card Master Note Trust (the "Transfer and Servicing Agreement")
                                              --------------------------------
in accordance with the requirements stated therein. This agreed-upon procedures
engagement was performed in accordance with standards established by the
American Institute of Certified Public Accountants. The sufficiency of these
procedures is solely the responsibility of FCNB, FCCC and the Trustee.
Consequently, we make no representation regarding the sufficiency of the
procedures described below either for the purpose for which this report has been
requested or for any other purpose.

For purposes of these agreed-upon procedures, differences between reported
amounts and FCNB (the "Servicer") documented amounts of less than or equal to
                       --------
$5,000 or 5% of the average of the amounts being compared were not considered
exceptions to the procedures performed. Our procedures and findings are as
follows:

                                  Exhibit E-1

<PAGE>

1.   We compared and/or recalculated, each of the amounts or entries shown in
     the Monthly Noteholder's Statements and the Monthly Servicer Certificates,
     other than entries showing "zero" amounts or "not applicable", for each of
     the months in the year ended December 31, _____ based on one or more of the
     following:

          .  Corresponding amounts or entries on the Transfer and Servicing
             Agreement,

          .  Schedules prepared by FCNB,

          .  Data extracted from FCNB's credit accounting system,

          .  Data provided to FCNB from the Trustee,

          .  Recalculations based on schedules prepared by FCNB and data
             extracted from FCNB's credit accounting system, or

          .  In instances where timely data was not available at the time the
             Certificates were prepared, to documented estimates by the
             Servicer.

     g. We read the "Annual Servicer's Certificate" for the year ended December
        31, _____ required by the Transfer and Servicing Agreement and made
        inquiries of FCNB's management regarding FCNB's compliance with the
        guidelines of the Transfer and Servicing Agreement. FCNB's management
        represented full compliance with the Transfer and Servicing Agreement.

We were not engaged to, and did not, perform an examination, the objective of
which would be the expression of an opinion on the Certificates. Accordingly, we
do not express such an opinion. Had we performed additional procedures, other
matters might have come to our attention that would have been reported to you.

This report is intended solely for the information and use of the specified
users listed above and is not intended to be and should not be used by anyone
other than these specified users.

Date

                                  Exhibit E-2

<PAGE>

                                   EXHIBIT F-1

                           FORM OF OPINION OF COUNSEL
                           WITH RESPECT TO AMENDMENTS

        (Provisions to be included in Opinion of Counsel to be delivered
                         pursuant to Section 9.2(d)(i))
                                     -----------------

     The opinions set forth below may be subject to all the qualifications,
assumptions, limitations and exceptions taken or made in the Opinions Of Counsel
delivered on any applicable Closing Date.

     (i)  The amendment to the Transfer and Servicing Agreement, attached hereto
as Schedule 1 (the "Amendment" ), has been duly authorized, executed and
   ----------       ---------
delivered by Seller and constitutes the legal, valid and binding agreement of
Seller, enforceable in accordance with its terms, except as such enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium
or other laws from time to time in effect affecting creditors' rights generally.
The enforceability of Seller's obligations is also subject to general principles
of equity (regardless of whether such enforceability is considered in a
proceeding in equity or at law).

     (ii) The Amendment has been entered into in accordance with the terms and
provisions of Section 9.1 of the Transfer and Servicing Agreement.
              -----------

                                 Exhibit F-1-1

<PAGE>

                                   EXHIBIT F-2
                                       to
                        TRANSFER AND SERVICING AGREEMENT

        (Provisions to be included in Opinion of Counsel to be delivered
             pursuant to Section 2.6(c)(vii) and Section 9.2(d)(ii))
                         -------------------     ------------------

     The opinions set forth below may be subject to all the qualifications,
assumptions, limitations and exceptions taken or made in the Opinions of Counsel
delivered on any applicable Closing Date.

     1.   Except for any Receivable that is evidenced by an instrument, the
Receivables constitute accounts under Article 9 of the applicable UCC.

     2.   If the Assignment, together with the Agreement, constitutes a valid
assignment of all Seller's right, title and interest in, to and under the
Receivables in Schedule 1 to the Assignment and all rights to security for such
               ----------
Receivables and the proceeds thereof (including without limitation rights to
bank accounts or certificates of deposit pledged as collateral) (the
"Collateral") and all of the Seller's rights, remedies, powers, and privileges
 ----------
with respect to such Collateral, then the Issuer has or will acquire all of
Seller's right, title and interest in, to and under the Collateral free and
clear of any Lien or interest of any person at the time of transfer (and anytime
thereafter with respect to any Lien or interest arising through or under the
Seller except as provided in the Agreement), except for Liens for municipal or
other local taxes permitted under Section 2.5(b) of the Agreement.

     3.   If the Assignment, together with the Agreement, does not constitute a
valid assignment of all of the Seller's right, title and interest in, to and
under the Collateral, then the Assignment creates a valid security interest in
all right, title and interest of Seller in, to and under the Collateral in favor
of the Issuer.

     4.   The Receivables Purchase Agreement constitutes a valid assignment of
all of the RPA Seller's right, title and interest in, to and under the
Collateral and all of its rights, remedies, powers, and privileges with respect
to such Collateral. The Seller has or will acquire all the RPA Seller's right,
title and interest in, to and under such Collateral free and clear of any Lien
or interest of any person at the time of transfer (and anytime thereafter with
respect to any Lien or interest arising through or under the RPA Seller, except
as provided in the Agreement), except for Liens for state, municipal or other
local taxes.

     5.   The security interest described in paragraphs 3 above is perfected and
of first priority.

                                 Exhibit F-2-1

<PAGE>

                                   EXHIBIT F-3

                          PROVISIONS TO BE INCLUDED IN
                            ANNUAL OPINION OF COUNSEL

     The opinions set forth below may be subject to certain qualifications,
assumptions, limitations and exceptions taken or made in the opinion of counsel
to Seller with respect to similar matters delivered on the Initial Closing Date.
Unless otherwise indicated, all capitalized terms used herein shall have the
meanings ascribed to them in the Transfer and Servicing Agreement.

     1.   No filing or other action, other than such filing or other action
described in this opinion letter, is necessary from the date of this opinion
letter through June 30 of the following year to continue the perfected status of
the security interest of the Trust in the Receivables and all rights to security
for such Receivables and the proceeds thereof (including without limitation
rights to bank accounts or certificates of deposit pledged as collateral) (the
"Collateral") described in the financing statements referenced in this opinion
 ----------
letter.

     2.   No filing or other action, other than such filing or other action
described in this opinion letter, is necessary from the date of this opinion
letter through June 30 of the following year to continue the perfected status of
the security interest of the Indenture Trustee in the Collateral described in
the financing statements referenced in this opinion letter.

     3.   No filing or other action, other than such filing or other action
described in this opinion letter, is necessary from the date of this opinion
letter through June 30 of the following year to continue the perfected status of
the security interest of the Seller in the Collateral described in the financing
statements referenced in this opinion letter.

                                 Exhibit F-3-1

<PAGE>

                                   SCHEDULE 1

                                List of Accounts
                                ----------------

                   [Original list delivered to Owner Trustee]

                                      1-1

<PAGE>

                                   SCHEDULE 2

                     ADDITIONAL REPRESENTATIONS, WARRANTIES
                                  AND COVENANTS

     In addition to the representations, warranties and covenants contained in
the Transfer and Servicing Agreement, Seller hereby represents, warrants and
covenants to the Trust as follows:

     (1)  The Transfer and Servicing Agreement creates either (A) a valid
transfer to the Issuer of all right, title and interest of Seller in, to and
under (i) the Receivables conveyed to the Seller pursuant to the Receivables
Purchase Agreement, (ii) all rights to security for such Receivables (including
without limitation rights to bank accounts or certificates of deposit pledged as
collateral) (the "Obligor Collateral") and (iii) the Collateral Certificate (the
                  ------------------
Obligor Collateral and Collateral Certificate together with the Receivables, the
"Collateral") and the Collateral will be held by the Issuer free and clear of
 ----------
any Lien, except for (w) the interests of the Noteholders and the Enhancement
Providers, (x) Liens permitted pursuant to paragraph 3 below, or (y) the
interests of the Seller as holder of the Seller Interest or (B) a valid and
continuing security interest (as defined in the applicable UCC) in the
Collateral in favor of the Issuer, which security interest is prior to all other
Liens, and is enforceable as such against creditors of and purchasers from the
Seller (other than Liens permitted pursuant to paragraph 3 below).

     (2)  The Receivables constitute "accounts" within the meaning of the
applicable UCC. The Obligor Collateral constitutes security interests on
personal property securing certain of those accounts, and the creation and
perfection of a security interest in such security interests is governed by
Sections 9-203(g) and 9-308(e), respectively, of the applicable UCC. The
Collateral Certificate constitutes a "certificated security," "instrument" or
"general intangible" within the meaning of the applicable UCC.

     (3)  Immediately prior to the conveyance of, or grant of the security
interest in, the Collateral pursuant to the Transfer and Servicing Agreement,
Seller owns and has good and marketable title to the Collateral, and a valid,
perfected security interest in the collateral for the Receivables in any secured
Accounts, in each case, free and clear of any Lien, claim or encumbrance of any
Person; provided that nothing in this paragraph 3 shall prevent or be deemed to
prohibit Seller from suffering to exist upon any of the Collateral any Liens for
any taxes if such taxes shall not at the time be due and payable or if FCNB or
Seller, as applicable, shall currently be contesting the validity thereof in
good faith by appropriate proceedings and shall have set aside on its books
adequate reserves with respect thereto. Seller has received all consents and
approvals required by the terms of the Collateral to the valid transfer of or
grant of security interest in the Collateral hereunder to the Issuer.

                                      1-2

<PAGE>

     (4)  (a) If perfection is by filing, Seller has caused, or will have caused
within 10 days, 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 Collateral granted to the Issuer under the
Transfer and Servicing Agreement. (b) If perfection is by possession, all
original executed copies of each mortgage note, promissory note or security
certificate that constitutes or evidences the Collateral has been delivered to
the Issuer. Each security certificate either (i) is in bearer form, (ii) has
been indorsed, by an effective indorsement, to the Issuer or in blank or (iii)
has been registered in the name of the Issuer.

     (5)  Other than the grant of the security interest in the Collateral to the
Issuer pursuant to the Transfer and Servicing Agreement, Seller has not pledged,
assigned, sold, granted a security interest in, or otherwise conveyed any of the
Collateral. Seller has not authorized the filing of and is not aware of any
financing statements against Seller that include a description of collateral
covering the Collateral. (a) If perfection is by filing, Issuer has in its
possession all original copies of the mortgage notes, promissory notes or
security certificates that constitute or evidence the Collateral. The mortgage
notes, promissory notes or security certificates that constitute or evidence the
Collateral do not have any marks or notations indicating that they have been
pledged, assigned or otherwise conveyed to any Person other than the Issuer. All
financing statements to be filed against Seller in favor of Issuer in connection
herewith describing the Collateral will contain a statement to the effect that
"A purchase of or security interest in any collateral described in this
financing statement will violate the rights of the Issuer". (b) If perfection is
by possession, none of the mortgage notes, promissory notes or security
certificates that constitute or evidence the Collateral have any marks or
notations indicating that they have been pledged, assigned or otherwise conveyed
to any Person other than the Issuer.

     (6)  Seller is not aware of any judgment, ERISA or tax lien filings against
Seller.

     (7)  Notwithstanding any other provision of the Transfer and Servicing
Agreement, the representations and warranties set forth in this Schedule 2 shall
                                                                ----------
be continuing, and remain in full force and effect, until such time as all Notes
have been finally and fully paid and shall survive the transfer of the Trust
Assets to the Issuer under the Transfer and Servicing Agreement and the
termination of the rights and obligations of the Servicer pursuant to Article
                                                                      -------
VII thereof. The parties to the Transfer and Servicing Agreement shall not,
---
without satisfying the Rating Agency Condition, waive a breach of any
representation or warranty set forth in this Schedule 2. In order to evidence
                                             ----------
the interests of Seller and the Issuer under the Transfer and Servicing
Agreement, Seller and Servicer shall take such action, or execute and deliver
such instruments (other than filing financing statements) as may be necessary or
advisable (including, without limitation, such actions as are requested by
Indenture Trustee) to maintain and perfect, as a first priority interest,
Seller's or the Issuer's security interest in the Collateral. The Servicer
shall, from time to time and within the time limits

                                      1-3

<PAGE>

established by law, prepare and present to the Issuer for the Indenture
Trustee's authorization and approval all financing statements, amendments,
continuations or initial financing statements in lieu of a continuation
statement, or other filings necessary to continue, maintain and perfect as a
first-priority interest. The Indenture Trustee's approval of such filings shall
authorize the Servicer to file such financing statements under the applicable
UCC without the signature of Seller or Issuer where allowed by applicable law.
Notwithstanding anything else in the Transfer and Servicing Agreement to the
contrary, the Servicer shall not have any authority to file a termination,
partial termination, release, partial release, or any amendment that deletes the
name of a debtor or excludes collateral of any such financing statements,
without the prior written consent of the Indenture Trustee. The Issuer may
require, prior to authorizing or filing any such termination, partial
termination, release, partial release or amendment, that Servicer provide an
Opinion of Counsel that such filings are authorized under the Transfer and
Servicing Agreement.

                                      1-4

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