Document:

<PAGE>

                                                                   EXHIBIT 10.27

                     INTEREST RATE SWAP GUARANTEE AGREEMENT

This Interest Rate Swap Guarantee Agreement ("Agreement") is made as of this
30th day of August, 2002, by and between Western Financial Bank, a federal
savings bank ("Bank" or "WFB"), WFS Financial Inc, a California corporation
("WFS"), and WFS Receivables Corporation, a California corporation ("WFSRC") and
is based upon the following recitals. The aforementioned parties shall
hereinafter be collectively referred to as "Companies."

                                    RECITALS

A.      WFB is the parent company of WFS, which in turn is the parent company of
        WFSRC.

B.      WFB desires to reduce the level of risk assets maintained by WFS for the
        determination of WFB's regulatory capital requirement while concurrently
        avoiding the creation of additional amounts of retained interest in
        securitized assets ("RISA") on the consolidated financial statements of
        WFS.

C.      WFSRC is a first tier subsidiary of WFS and acts as the originator or
        co-originator of one or more asset securitization trusts and as a seller
        of WFS auto contracts to each of such trusts. The reduction of risk and
        avoidance of additional amounts of RISA on the consolidated financial
        statements of WFS can be accomplished upon the non-recourse sale of WFS
        originated auto contracts on a whole loan servicing released basis to
        WFSRC.

D.      WFB desires to limit the amount of collateral required and prepayment
        risk related to the floating rate note classes issued by the WFS
        Financial 2002-1 Owner Trust, which supported the most economic secured
        financing available to facilitate the aforementioned loan sale.

E.      In consideration of the above recitals B-D, WFB is willing to guarantee
        the timely exchange of any variable notes, rates, classes and interest
        payments between WFS and WFSRC.

                                    AGREEMENT

In consideration of the mutual promises set forth herein, and in reliance upon
the recitals set forth above, the parties agree as follows:

1.      The above recitals are hereby incorporated into this Agreement by
                                               reference and made a part hereto.

2.      Guarantee. WFB hereby guarantees the timely exchange of any variable
notes, rates, classes and interest payments due to third parties by WFS or
WFSRC.

3.      Further Assurances. The Companies agree that they will modify, amend, or
restate any provision of this Agreement as necessary in order to insure that
this Agreement complies with all applicable federal laws and OTS regulations
with respect to transacting business between the parties.

4.      Term.

        4.1     This Agreement shall commence as of the date stated above and
                shall continue until terminated by the parties.

<PAGE>

        4.2     This Agreement may be terminated immediately for breach of any
                covenant, obligation, or duty herein contained or for violation
                of law, ordinance, statute, rule or regulation (collectively
                referred to as "law") governing the conduct of any party hereto.

        4.3     Termination shall not effect the obligations of the Companies
                with respect to any event occurring before termination. Each
                Company shall be bound by and responsible for any transaction or
                expense properly agreed to or incurred by the other Company in
                connection with services performed hereunder but not settled,
                paid or reimbursed prior to the date of any such termination.
                Upon termination of this Agreement, the fee referred to above
                will be prorated, but the due date thereof shall not be changed.

5.      Representations and Warranties of Each Company. Each Company on its
        behalf alone represents and warrants to and for the benefit of the other
        Company as follows:

        5.1     Corporate Existence and Qualifications. Each Company is either a
                corporation or association duly organized, validly existing and
                in good standing under the laws of the United States or of the
                State of California, as applicable, with full corporate power to
                own its properties and to carry on its business as now owned and
                operated by Company.

        5.2     Licenses: Compliance with Laws. Each Company has all licenses,
                franchises, permits and authorizations necessary ("Licenses"),
                or is otherwise exempt from having to obtain such Licenses, for
                the lawful conduct by the respective Company of its business.
                Neither Company has violated, nor is in violation of, any such
                licenses, franchises, permits or authorizations or any
                applicable statues, laws, ordinances, rules or regulations of
                any federal, state, or local governmental bodies, agencies or
                subdivisions having, asserting or claiming jurisdiction over it
                or over any part of its operations.

6.      Covenants Regarding Corporate Existence.

        6.1     Preservation of Corporate Existence and Qualifications. Each
                Company shall keep in full effect its existence, rights and
                franchises as a corporation or association under the laws of the
                jurisdiction in which each is organized and will obtain and
                preserve its qualifications to carry on business as a foreign
                corporation in each jurisdiction in which such qualification is
                or shall be necessary.

        6.2     Observation of Corporate Formalities. Each Company shall at all
                times observe the applicable legal requirements for the
                recognition of Company as a corporate entity separate and apart
                from any other Company, including without limitation the
                following:

                (a)     Each Company shall maintain corporate records and books
                        of account separate from those of every other Company;

                (b)     Each Company shall hold meetings of its Board of
                        Directors as appropriate to authorize its corporate
                        actions;

                                       2
<PAGE>

                (c)     Each Company shall hold meetings of its shareholder(s)
                        as appropriate and as required by applicable law in the
                        jurisdiction in which organized to authorize its
                        corporate actions;

                (d)     Each Company shall file all reports required by the
                        Secretary of State in any and all jurisdictions in which
                        that Company is licensed or qualified, including the
                        annual statement by whatever name denominated, in a
                        timely manner; and

                (e)     Each Company shall ensure that any applicable yearly
                        franchise taxes are paid in a timely manner so as to
                        maintain its corporate existence uninterrupted.

        6.3     Advertising. Each Company will at all times hold itself out to
                the public as an entity separate from every other Company and
                its advertising and marketing shall reflect such separate
                corporate existence.

        6.4     OTS Regulations. Each Company shall comply with all applicable
                OTS regulations. If required by 12 C.F.R. Section 563.37(b), any
                instrument evidencing borrowing by a Company shall indicate that
                no other Company is responsible for any such debt.

7.      Liability; Consultation with Counsel. With respect to the obligations
        hereunder, no Company shall assume responsibility or liability with
        respect to the business or affairs of any other Company except to the
        extent provided for in this Agreement. Each benefiting Company under
        this Agreement ("Indemnitor") shall indemnify, defend and hold harmless
        the performing Company against and in respect of any and all claims,
        demands, losses, costs, expenses, obligations, liabilities, damages,
        recoveries and deficiencies (collectively the "Claims), including
        without limitation interest penalties and attorney's fees, that such
        performing Company shall incur or suffer, which arise, result from or
        relate to (i) conduct by Indemnitor of its business and operations and
        (ii) breach by Indemnitor of its obligations pursuant to this Agreement.
        Notwithstanding anything contained herein to the contrary, Indemnitor's
        obligations pursuant to this section shall not be applicable to Claims
        arising directly from the performing Company's bad faith, gross
        negligence or willful misconduct. This Agreement shall create no right,
        benefit or privilege in favor of any person not a party hereto, and no
        person not a party hereto shall have any recourse against the performing
        Company for any advice, service or facility provided or omitted by
        performing Company pursuant to this Agreement. The performing Company
        may consult with legal counsel (who may also be counsel to Indemnitor)
        concerning any questions that may arise with respect to its duties and
        obligations hereunder, and it shall be fully protected in respect of any
        action taken or omitted by it hereunder in good faith reliance on any
        opinion of such counsel with respect to any such duty or obligation.

8.      General.

        8.1     This Agreement may be modified, amended or superseded in whole
                or in part, at any time, by a writing executed by the parties
                hereto.

        8.2     The laws of California shall govern this Agreement, except to
                the extent federal law or regulation supersedes any such laws.

        8.3     This Agreement may be executed in counterparts, all of which,
                taken together shall constitute one agreement.

                                       3
<PAGE>

        8.4     No Company shall assign this Agreement without the prior written
                consent of each of the other Companies, which consent shall not
                unreasonably be withheld.

Wherefore, the undersigned have executed this Agreement as of the date first set
forth above.

WESTERN FINANCIAL BANK

By:
   -------------------------------------
     Thomas A. Wolfe
Its: President

WFS RECEIVABLES CORPORATION

By:
   -------------------------------------
     John Coluccio
Its: President

WFS FINANCIAL INC

By:
   -------------------------------------
     J. Keith Palmer
Its: Sr. Vice President & Treasurer

                                       4<PAGE>

                                                                   EXHIBIT 10.28

                               SECURITY AGREEMENT

        This security agreement ("Agreement") is made as of the ___ day of
_______, 2002 by and between WFS Receivables Corporation 2 ("WFSRC2") and WFS
Financial Inc ("WFS") and Western Financial Bank (the "Bank") with respect to
the following facts:

                                    RECITALS

        A. WFSRC2 and WFS entered into a Sale and Servicing Agreement dated as
of August 1, 2000 with respect to the WFS Financial 2000-C Owner Trust pursuant
to which WFS is entitled to receive additional servicing fees, the payment of
which is deferred until funds are released to WFSRC2 from the spread account
established pursuant to that agreement (the "2000-C Spread Account").

        B. WFSRC2 and WFS entered into a Sale and Servicing Agreement dated as
of May 1, 2001 with respect to the WFS Financial 2001-B Owner Trust pursuant to
which WFS is entitled to receive additional servicing fees, the payment of which
is deferred until funds are released to WFSRC2 from the spread account
established pursuant to that agreement (the "2001-B Spread Account").

        C. The deferral of payment of accrued Additional Servicing Fees (as
defined in those Sale and Servicing Agreements) result in an advance being
deemed made by WFS to WFSRC2, which advance is an asset of the Bank, the parent
company of WFS, upon consolidation pursuant to GAAP.

        D. To ensure compliance with OTS transactions with affiliates
regulations, 12 CFR Section 563.41, WFSRC2 desires to memorialize its intention
that WFS and the Bank have a perfected security interest in the money and other
investments in or made with funds in each of the 2000-C Spread Account and the
2001-B Spread Account, or with respect to any future similar spread account.

                                    AGREEMENT

        In reliance upon the foregoing facts and in consideration of the mutual
promises set forth herein, the parties hereto agree as follows:

        1. WFSRC2 hereby confirms that it has previously orally granted and does
hereby grant WFS and the Bank a security interest in all money and other
investments in or made with funds in the 2000-C Spread Account and the 2001-B
Spread Account, or with respect to any future similar spread account to secure
payment of any accrued Additional Servicing Fee earned by WFS which is accounted
for as an advance by the Bank.

        2. 2001-B Spread Account are deposited with the Bank and that such funds
are invested in reinvestment contracts with the Bank, which essentially results
in all cash in the 2000-C Spread Account and the 2001-B Spread Account being in
possession of the Bank, except as such funds are otherwise disbursed pursuant to
the terms and conditions of the above

                                      -1-
<PAGE>

referenced Sale and Servicing Agreements, such that the Bank will have
possession of all such funds and will have perfected the security interest
previously granted and as granted in this Agreement by that possession.

        3. The Bank shall have all rights of a secured creditor available under
the California Uniform Commercial Code.

        4. By reason of limitations set forth in the articles of incorporation
of WFSRC2, which limitations are included therein as a condition to obligations
issues by WFSRC2 or any trust it originates being rated not less than investment
grade, subject to otherwise meeting applicable qualifications for such rating,
WFSRC2 may not obligate itself to pay the additional servicing fees except out
of funds released from the 2000-C Spread Account and the 2001-B Spread Account,
and that any such obligations of WFSRC2 be subordinated to payment of any such
rated debt, in both cases while such debt is outstanding. WFSRC2 agrees that to
the extent it has not fully paid all accrued Additional Servicing Fees due with
respect to the WFS Financial 2000-C Owner Trust or the WFS Financial 2001-B
Owner Trust at the time that the last of such owner trusts is terminated in the
manner contemplated by the Sale and Servicing Agreement applicable to each such
owner trust, that the obligation of WFSRC2 to fully pay such fees shall be
unconditional and that WFS and the Bank shall have recourse to all assets of
WFSRC2 to enforce that obligation. In addition, notwithstanding the right of
WFSRC2 to receive 50% of all amounts released from the spread account, with the
remaining 50% being paid to WFS to the extent of any accrued Additional
Servicing Fees, WFSRC2 hereby waives and relinquishes its right to receive any
amount released from the spread account for either the WFS Financial 2000-C
Owner Trust or WFS Financial 2001-B Owner Trust unless and until all amounts of
accrued Additional Servicing Fees due to WFS have been paid in full. WFS is
hereby authorized by WFSRC2 to so advise and direct the Owner Trustee to
disburse any such Excess Spread Amounts to WFS and not to WFSRC2, unless and
until all amounts of accrued Additional Servicing Fees due to WFS have been paid
in full.

        5. At the sole cost and expense WFSRC2, WFSRC2 shall duly execute and
deliver, or cause to be duly executed and delivered to the Bank or WFS, as each
may request, such further agreements, documents, instruments and information and
do or cause to be done such further acts as may be necessary or proper to
evidence and/or perfect the security interests of the Bank or WFS in the money
and other investments in or made with funds in the 2000-C Spread Account and the
2001-B Spread Account, or with respect to any future similar spread account or
to otherwise carry out more effectively the provisions and purposes of this
Agreement as the Bank or WFS may from time to time request.

        6. WFSRC2 shall at all times comply with the requirements of all
applicable laws, rules, regulations and orders of all governmental authorities
of the United States, the States, foreign countries, states, provinces thereof
and their respective counties, municipalities and other subdivisions and of any
other jurisdictions (whether domestic or foreign) applicable to it.

        7. That all costs, expenses, obligations and liabilities of WFSRC2 shall
be discharged as and when they fall due except any such items being diligently
contested in good faith for which appropriate reserves and provisions as
required by GAAP have been made, so

                                      -2-
<PAGE>

long as by reason of such non-payment and contest no material item or portion of
the assets of WFSRC2 is in jeopardy of being seized, levied upon or forfeited.

        8. WFSRC2 shall be in default hereunder if it fails to comply with any
provisions set forth herein. Upon any default by WFSRC2 not cured with in 10
days of written notice thereof from the Bank of WFS, the Bank and WFS shall have
all rights of a secured creditor under the California Uniform Commercial Code.

        9. Neither the Bank nor WFS shall cause WFSRC2 to, petition or otherwise
invoke the process of any court or government authority for the purpose of
commencing or sustaining a case against WFSRC2 under any federal or state
bankruptcy, insolvency or similar law or appointing a receiver, liquidator,
assignee, trustee, custodian, sequestrator or other similar official of WFSRC2
or any substantial part of its property, or ordering the winding up or
liquidation of the affairs of WFSRC2 at any time that either WFSRC2 or any trust
originated by WFSRC2 have any debt obligations outstanding rated by any Rating
Agency, as that term is defined in either of the above referenced Sale and
Servicing Agreements.

        10. All notices, requests, demands and other communications required or
permitted to be given hereunder shall be in writing and shall be deemed to have
been duly given if telecopied or if delivered by messenger or courier delivery,
or sent by first class mail, postage prepaid, certified or registered, return
receipt requested, as set forth below or at such other address as may be
furnished in writing:

                      If to WFSRC2:

                      WFS Receivables Corporation
                      23 Pasteur
                      Irvine California 92618
                      Attention:  Mark Olson
                      Fax No.: 949-727-2309

                      With a copy to:

                      Guy DuBose, Esq.
                      23 Pasteur
                      Irvine California 92618
                      Fax No.:  949-753-3085

                      If to the Bank or WFS:

                      Western Financial Bank/WFS Financial Inc:
                      15750 Alton Parkway
                      Irvine, California 92618
                      Attention:  Mark Olson
                      Fax No.: 949-727-2309

                                      -3-
<PAGE>

Any notice given by messenger or courier delivery as provided in this Section 10
shall be deemed given when delivered if during normal business hours on a
Business Day (or if not, the next Business Day after delivery); any notice given
by telecopier as provided herein shall be deemed given when sent if during
normal business hours on a Business Day (or, if not, the next Business Day after
it is sent), provided that at the time such telecopy is sent, the sending party
receives written confirmation of receipt and forwards a copy of the notice by
mail, messenger or courier delivery as provided herein; any notice given by
first class mail, postage prepaid, certified or registered, return receipt
requested shall be deemed given two (2) Business Days after the date of mailing.
Any party may by notice to the other change the address at which notices and
demands may be given to it.

        11. No failure or delay on the part of the Bank or WFS in notifying
WFSRC2 of a default, or in exercising, or partial exercise of, any right, power
or privilege hereunder shall operate as a waiver of any such default, or
privilege or right hereunder or otherwise or preclude any other or further
exercise of any other right power or privilege.

        12. This Agreement shall be subject to, construed and governed by, the
laws of the State of California without giving effect to such state's conflicts
of law provisions, but subject to any federal law that may pre-empt application
of the law of California. This Agreement may not be assigned, pledged,
hypothecated or otherwise encumbered by WFSRC2. Subject to the foregoing
sentence, this Agreement shall inure to the benefit of the Bank and WFS (and
their respective successors and assigns) and WFSRC2, and shall be binding upon
the successors and assigns of the parties hereto.

        13. This Agreement may be executed in one or more counterparts, each of
which shall constitute an original Agreement, but all of which together shall
constitute one and the same instrument.

        14. This Agreement and the Sale and Servicing Agreement set forth the
entire agreement and understanding of the parties concerning the subject matter
of this Agreement and supersede all prior agreements, arrangements, and
understandings regarding such subject matter between the parties hereto, which
agreements, arrangements and understandings are merged herein.

        15. No modification or waiver of any provision of this Agreement and no
consent to any departure by WFSRC2 from the Agreement shall in any event be
effective unless the same shall be in writing and signed by the each of the
parties hereto and then such waiver or consent shall be effective only in the
specific instance and for the purpose for which given.

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first set forth above.

                                         WFS RECEIVABLES CORPORATION

                                         By:
                                            ------------------------------------

                                      -4-
<PAGE>

                                         Its:
                                             -----------------------------------

                                         WESTERN FINANCIAL BANK

                                         By:
                                            ------------------------------------
                                         Its:
                                             -----------------------------------

                                         WFS FINANCIAL INC

                                         By:
                                            ------------------------------------
                                         Its:
                                             -----------------------------------

                                      -5-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00048-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00048-of-00352.parquet"}]]