Document:

<PAGE>

                                                                  EXECUTION COPY

                        AMERICAN HONDA RECEIVABLES CORP.,
                                  as Depositor,

                              THE BANK OF NEW YORK,
                                as Owner Trustee

                                       and

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

                         ------------------------------
                              AMENDED AND RESTATED
                                 TRUST AGREEMENT

                             Dated February 25, 2003
                         ------------------------------

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

                                   ARTICLE ONE

                                   DEFINITIONS

<TABLE>
<CAPTION>
<S>                   <C>                                                                                        <C>
   Section 1.01.      General Definitions.........................................................................1
   Section 1.02.      Other Definitional Provisions...............................................................4
   Section 1.03.      Interpretive Provisions.....................................................................5

                                   ARTICLE TWO

                                  ORGANIZATION

   Section 2.01.      Name........................................................................................5
   Section 2.02.      Office......................................................................................5
   Section 2.03.      Purposes and Powers.........................................................................5
   Section 2.04.      Appointment of Owner Trustee and Delaware Trustee...........................................6
   Section 2.05.      Initial Capital Contribution of Owner Trust Estate..........................................6
   Section 2.06.      Declaration of Trust........................................................................7
   Section 2.07.      Liability of Owners.........................................................................7
   Section 2.08.      Title to Trust Property.....................................................................7
   Section 2.09.      Situs of Issuer.............................................................................7
   Section 2.10.      Representations and Warranties of the Depositor.............................................8

                                  ARTICLE THREE

                  TRUST CERTIFICATES AND TRANSFER OF INTERESTS

   Section 3.01.      Initial Ownership...........................................................................9
   Section 3.02.      The Trust Certificates......................................................................9
   Section 3.03.      Authentication and Delivery of Trust Certificates...........................................9
   Section 3.04.      Registration of Transfer and Exchange of Trust Certificates................................10
   Section 3.05.      Mutilated, Destroyed, Lost or Stolen Trust Certificates....................................11
   Section 3.06.      Persons Deemed Owners......................................................................12
   Section 3.07.      Access to List of Certificateholders' Names and Addresses..................................12
   Section 3.08.      Maintenance of Office or Agency............................................................12
   Section 3.09.      Appointment of Paying Agent................................................................12
   Section 3.10.      Definitive Trust Certificates..............................................................13
   Section 3.11.      Repayment of Trust Certificates............................................................13

                                  ARTICLE FOUR

                            ACTIONS BY OWNER TRUSTEE

   Section 4.01.      Prior Notice to Owners with Respect to Certain Matters.....................................13
   Section 4.02.      Action by Owners with Respect to Certain Matters...........................................14
</TABLE>

                                       i

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<TABLE>
<CAPTION>
<S>                   <C>                                                                                       <C>
   Section 4.03.      Action by Owners with Respect to Bankruptcy................................................14
   Section 4.04.      Restrictions on Owners' Power..............................................................14
   Section 4.05.      Majority Control...........................................................................14

                                  ARTICLE FIVE

                   APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

   Section 5.01.      Establishment of Trust Account.............................................................15
   Section 5.02.      Application of Trust Funds.................................................................15
   Section 5.03.      Method of Payment..........................................................................16
   Section 5.04.      No Segregation of Monies; No Interest......................................................16
   Section 5.05.      Accounting and Reports to Owners, Internal Revenue Service and Others......................16

                                   ARTICLE SIX

                      AUTHORITY AND DUTIES OF OWNER TRUSTEE

   Section 6.01.      General Authority..........................................................................17
   Section 6.02.      General Duties.............................................................................17
   Section 6.03.      Action Upon Instruction....................................................................17
   Section 6.04.      No Duties Except as Specified in this Agreement or in Instructions.........................18
   Section 6.05.      No Action Except Under Specified Documents or Instructions.................................18
   Section 6.06.      Restrictions...............................................................................18

                                  ARTICLE SEVEN

                               CONCERNING THE OWNER TRUSTEE AND THE DELAWARE TRUSTEE

   Section 7.01.      Acceptance of Trusts and Duties............................................................19
   Section 7.02.      Furnishing of Documents....................................................................20
   Section 7.03.      Representations and Warranties of the Owner Trustee and the Delaware Trustee...............20
   Section 7.04.      Reliance, Advice of Counsel................................................................22
   Section 7.05.      Not Acting in Individual Capacity..........................................................22
   Section 7.06.      Owner Trustee and Delaware Trustee Not Liable for Trust Certificates or Receivables........22
   Section 7.07.      Owner Trustee and Delaware Trustee May Own Trust Certificates and Notes....................23

                                  ARTICLE EIGHT

                               COMPENSATION OF OWNER TRUSTEE AND THE DELWARE TRUSTEE

   Section 8.01.      Owner Trustee's and Delaware Trustee's Fees and Expenses...................................24
   Section 8.02.      Indemnification............................................................................24
   Section 8.03.      Payments to the Owner Trustee and to the Delaware Trustee..................................24
</TABLE>

                                       ii

<PAGE>

                                  ARTICLE NINE

                         TERMINATION OF TRUST AGREEMENT

<TABLE>
<CAPTION>
<S>                   <C>                                                                                       <C>
   Section 9.01.      Termination of Trust Agreement.............................................................24

                                   ARTICLE TEN

                     SUCCESSOR AND ADDITIONAL OWNER TRUSTEES

   Section 10.01.     Eligibility Requirements for Owner Trustee and Delaware Trustee............................26
   Section 10.02.     Resignation or Removal of Owner Trustee....................................................26
   Section 10.03.     Successor Owner Trustee or Delaware Trustee................................................27
   Section 10.04.     Merger or Consolidation of Owner Trustee or Delaware Trustee...............................27
   Section 10.05.     Appointment of Co-Trustee or Separate Trustee..............................................28

                                 ARTICLE ELEVEN

                                  MISCELLANEOUS

   Section 11.01.     Supplements and Amendments.................................................................29
   Section 11.02.     No Legal Title to Owner Trust Estate in Owner..............................................30
   Section 11.03.     Limitations on Rights of Others............................................................30
   Section 11.04.     Notices....................................................................................30
   Section 11.05.     Severability...............................................................................31
   Section 11.06.     Separate Counterparts......................................................................31
   Section 11.07.     Successors and Assigns.....................................................................31
   Section 11.08.     No Petition................................................................................31
   Section 11.09.     No Recourse................................................................................31
   Section 11.10.     Headings...................................................................................32
   Section 11.11.     Governing Law..............................................................................32
   Section 11.12.     Trust Certificates Nonassessable and Fully Paid............................................32
   Section 11.13.     Depositor Payment Obligation...............................................................32
</TABLE>

                                      iii

<PAGE>

                                    EXHIBITS

Exhibit A - Form of Trust Certificate                A-1
Exhibit B - Form of Seller Certificate               B-1
Exhibit C - Form of Investment Letter                C-1
Exhibit D - Form of Rule 144A Letter                 D-1

                                       iv

<PAGE>

         This Amended and Restated Trust Agreement, dated February 25, 2003, is
among American Honda Receivables Corp., a California corporation, as depositor
(the "Depositor"), The Bank of New York, as trustee (the "Owner Trustee"), and
The Bank of New York (Delaware), as Delaware Trustee (the "Delaware Trustee").

         WHEREAS, Honda Auto Receivables 2003-1 Owner Trust has been created
pursuant to a trust agreement, dated as of January 21, 2003 between the
Depositor and the Delaware Trustee (the "Initial Trust Agreement"); and

         WHEREAS, the parties hereto are entering into this amended and restated
trust agreement pursuant to which, among other things, the Initial Trust
Agreement will be amended and restated and $1,541,700,000 aggregate principal
amount of Asset Backed Certificates will be issued;

         NOW, THEREFORE, in consideration of the mutual agreements herein
contained, and of other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties hereto agree as follows:

                                  ARTICLE ONE

                                   DEFINITIONS

         Section 1.01. General Definitions. Whenever used herein, unless the
context otherwise requires, the following words and phrases shall have the
following meanings:

         "Administration Agreement" means the administration agreement, dated as
of February 1, 2003, among the Issuer, the Indenture Trustee, the Depositor and
AHFC, as amended or supplemented from time to time.

         "Administrator" means AHFC, as Administrator under the Administration
Agreement, and its successors in such capacity.

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

         "AHFC" means American Honda Finance Corporation, and its successors.

         "AHRC" means American Honda Receivables Corp., and its successors.

         "Applicants" shall have the meaning specified in Section 3.07.

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

<PAGE>

         "Certificate Balance" means, with respect to any Trust Certificate, the
original certificate balance of such Trust Certificate minus all payments on
such Trust Certificate with respect to principal.

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

         "Certificate of Trust" means the Certificate of Trust filed for the
Issuer pursuant to Section 3810(a) of the Statutory Trust Statute, substantially
in the form of Exhibit A to the Initial Trust Agreement.

         "Certificate Rate" means 2.48% per annum calculated on the basis of a
360 day year of twelve 30 day months.

         "Certificate Register" and "Certificate Registrar" means the register
maintained and the registrar (or any successor thereto) appointed pursuant to
Section 3.04.

         "Certificateholder" or "Holder" means a Person in whose name a Trust
Certificate is registered.

         "Closing Date" means February 25, 2003.

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

         "Commission" means the Securities and Exchange Commission, and its
successors.

         "Corporate Trust Office" means, with respect to the Owner Trustee, the
principal corporate trust office of the Owner Trustee located at 101 Barclay
Street, 8th Floor West, New York, New York 10286, or at such other address as
the Owner Trustee may designate by notice to the Owners and, the Depositor, or
the principal corporate trust office of any successor Owner Trustee at the
address designated by such successor Owner Trustee by notice to the Owners and
the Depositor.

         "Depositor" means AHRC in its capacity as depositor hereunder.

         "Delaware  Trustee"  means  The Bank of New York  (Delaware),  with its
principal  place of business  in the State of  Delaware,  not in its  individual
capacity, but solely as Delaware Trustee under this Agreement,  and any sucessor
Delaware Trustee hereunder.

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

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

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

                                       2

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         "Expenses" means all liabilities, obligations, losses, damages, taxes,
claims, actions and suits, and any and all reasonable out of pocket costs,
expenses and disbursements (including reasonable legal fees and expenses) of any
kind and nature whatsoever.

         "Indemnified Parties" means the Owner Trustee and its successors,
assigns, agents and any co-trustee and the Delaware Trustee and its successors,
assigns, agents and any co-trustee.

         "Indenture" means the indenture dated as of February 1, 2003 between
the Issuer and JPMorgan Chase Bank, as indenture trustee.

         "Investment Letter" means a letter delivered in connection with the
transfer of a Trust Certificate pursuant to Section 3.04(a), substantially in
the form of Exhibit C.

         "Issuer" means the Honda Auto Receivables 2003-1 Owner Trust, and its
successors.

         "Opinion of Counsel" means one or more written opinions of counsel, who
may be an employee of or counsel to the Seller, the Depositor or the Servicer,
which counsel shall be acceptable to the Indenture Trustee, the Owner Trustee or
each Rating Agency, as applicable.

         "Original Certificate Balance" means $35,577,657.84.

         "Original Contribution Amount" means $1,000.00.

         "Owner" means each Holder of a Trust Certificate.

         "Owner Trust Estate" means all right, title and interest of the Issuer
in and to the property and rights assigned to the Issuer pursuant to Article Two
of the Sale and Servicing Agreement, all funds on deposit from time to time in
the Accounts and the Certificate Distribution Account, all other property of the
Issuer from time to time, including any rights of the Owner Trustee and the
Issuer pursuant to the Sale and Servicing Agreement and the Administration
Agreement and all proceeds of the foregoing.

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

         "Paying Agent" means any paying agent or co-paying agent appointed
pursuant to Section 3.09.

         "Payment Date" means the eighteenth calendar day of each month,
commencing March 2003, or if such day is not a Business Day, then the next
succeeding Business Day.

         "Percentage Interest" means, as to any Trust Certificate, (i) the
original certificate balance for such Trust Certificate, as specified on the
face thereof, divided by (ii) the Original Certificate Balance; provided, that
in determining whether the Holders of the requisite portion or percentage of the
Trust Certificates have given any request, demand, authorization, direction,
notice, consent or waiver hereunder or under any other Basic Document, Trust
Certificates owned by the Issuer, any other obligor upon the Certificates, the
Seller, the Servicer or any Affiliate of any of the foregoing Persons shall be
disregarded and deemed to be excluded from

                                       3

<PAGE>

the Certificate Balance (unless such Persons own 100% of the Trust
Certificates), except that, in determining whether the Indenture Trustee and
Owner Trustee shall be protected in relying on any such request, demand,
authorization, direction, notice, consent or waiver, only Trust Certificates
that the Indenture Trustee and the Owner Trustee have actual knowledge of being
so owned shall be so disregarded. Trust Certificates so owned that have been
pledged in good faith may be regarded as included in the Certificate Balance if
the pledgee establishes to the satisfaction of the Indenture Trustee or the
Owner Trustee, as applicable, the pledgee's right so to act with respect to such
Trust Certificates and that the pledgee is not the Issuer, any other obligor
upon the Trust Certificates, the Seller or any Affiliate of any of their
respective Affiliates. Neither the Indenture Trustee nor the Owner Trustee shall
incur any liability to any person in determining whether a pledgee has the right
to act with respect to such Trust Certificates.

         "Record Date" means the day immediately preceding the Payment Date so
long as the securities are in book-entry form, and the last day of the month
preceding the Payment Date if the securities are issued in definitive form.

         "Required Rating" means, with respect to any entity, that such entity
(or the parent of such entity) has a rating of at least BBB- by Standard &
Poor's and at least Baa3 by Moody's.

         "Rule 144A Letter" means a letter delivered in connection with the
transfer of a Trust Certificate pursuant to Section 3.04(a), substantially in
the form attached hereto as Exhibit D.

         "Sale and Servicing Agreement" means the sale and servicing agreement,
dated as of February 25, 2003, among the Issuer, the Depositor and AHFC, as
servicer, as amended or supplemented from time to time.

         "Secretary of State" means the Secretary of State of the State of
Delaware.

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

         "Seller Certificate" means a certificate of transfer delivered in
connection with the transfer of a Trust Certificate pursuant to Section 3.04(a),
substantially in the form of Exhibit B.

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

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

         "Trust Certificate" means a certificate evidencing the beneficial
interest of an Owner in the Trust, substantially in the form of Exhibit A.

         Section 1.02. Other Definitional Provisions.

                                       4

<PAGE>

         (a) Capitalized terms used herein that are not otherwise defined have
the meanings ascribed thereto in the Sale and Servicing Agreement or the
Indenture, as the case may be.

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

         Section 1.03. Interpretive Provisions.

         (a) For all purposes of this Agreement, except as otherwise expressly
provided or unless the context otherwise requires, (i) terms used herein
include, as appropriate, all genders and the plural as well as the singular,
(ii) references to words such as "herein", "hereof" and the like shall refer to
this Agreement as a whole and not to any particular part, article or section
within this Agreement, (iii) references to a section such as "Section 1.01" and
the like shall refer to the applicable Section of this Agreement, (iv) the term
"include, and all variations thereof shall mean "include without limitation",
(v) the term "or" shall include "and/or" and (vi) the term "proceeds" shall have
the meaning set forth in the applicable UCC.

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

                                   ARTICLE TWO

                                  ORGANIZATION

         Section 2.01. Name. The trust created hereby shall be known as the
"Honda Auto Receivables 2003-1 Owner Trust", in which name the Owner Trustee may
conduct the business of the Issuer, make and execute contracts and other
instruments and sue and be sued, to the extent herein provided.

         Section 2.02. Office. The Delaware office of the Issuer shall be in
care of the Delaware Trustee at White Clay Center Route 273, Newark, Delaware
19711, or at such other address in the State of Delaware as the Delaware Trustee
may designate by written notice to the Owners and the Depositor. The New York,
New York office of the Issuer shall be in care of the Owner Trustee at the
Corporate Trust Office or at such other address in Delaware as the Owner Trustee
may designate by written notice to the Owners and the Depositor.

         Section 2.03. Purposes and Powers.

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<PAGE>

         (a) The sole purpose of the Issuer is to conserve the Owner Trust
Estate and collect and disburse the periodic income therefrom for the use and
benefit of the Certificateholders, and in furtherance of such purpose to engage
in the following ministerial activities:

              (i) to issue the Notes pursuant to the Indenture and the Trust
         Certificates pursuant to this Agreement and to sell the Notes and the
         Trust Certificates;

              (ii) with the proceeds of the sale of the Notes and the Trust
         Certificates, to purchase the Receivables, to fund the Reserve Fund and
         the Yield Supplement Account, to pay the organizational, start-up and
         transactional expenses of the Trust and to pay the balance to the
         Depositor pursuant to the Sale and Servicing Agreement;

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

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

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

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

         (b) The Issuer is hereby authorized to engage in the foregoing
activities. The Issuer shall not engage in any activities other than in
connection with the foregoing or other than as required or authorized by the
terms of this Agreement or the other Basic Documents.

         Section 2.04. Appointment of Owner Trustee and Delaware Trustee. The
Depositor hereby appoints the Owner Trustee as trustee of the Issuer effective
as of the date hereof, to have all the rights, powers and duties set forth
herein, and the Owner Trustee hereby accepts such appointment. The Depositor
hereby appoints the Delaware Trustee as a trustee of the Issuer effective as of
the date hereof, for the sole purpose of satisfying Section 3807(a) of the
Delaware Statutory Trust Statute, and the Delaware Trustee hereby accepts such
appointment. The Owner Trustee may engage, in the name of the Issuer or in its
own name on behalf of the Issuer, in the activities of the Issuer, make and
execute contracts on behalf of the Issuer and sue on behalf of the Issuer.

         Section 2.05. Initial Capital Contribution of Owner Trust Estate. The
Depositor hereby reaffirms its sale, assignment, transfer and conveyance to the
Owner Trustee, as of the date of the Initial Trust Agreement, the sum of
$1,000.00 (the "Original Contribution Amount"). The Owner Trustee hereby
reaffirms its receipt in trust from the Depositor, as of the date of the Initial
Trust Agreement, of the Original Contribution Amount, which constituted the
initial Owner Trust Estate and shall be on or before the date hereof deposited
in the Certificate Distribution

                                       6

<PAGE>

Account. On the date hereof the Owner Trustee is hereby directed to withdraw the
Original Contribution Amount from the Certificate Distribution Account and
transfer such sums to the Depositor via wire transfer to the Depositor's account
from which the Original Contribution Amount was received. The Depositor shall
pay organizational expenses of the Issuer as they may arise or shall, upon the
request of the Owner Trustee, promptly reimburse the Owner Trustee for any such
expenses paid by the Owner Trustee.

         Section 2.06. Declaration of Trust. The Owner Trustee hereby declares
that it will hold the Owner Trust Estate in trust upon and subject to the
conditions set forth herein for the sole purpose of conserving the Owner Trust
Estate and collecting and disbursing the periodic income therefrom for the use
and benefit of the Owners, subject to the obligations of the Issuer under the
Basic Documents. It is the intention of the parties hereto that the Issuer
constitute a statutory trust under the Statutory Trust Statute and that this
Agreement constitute the governing instrument of such statutory trust. It is the
intention of the parties hereto that, solely for income and franchise tax
purposes, (i) so long as there is a sole Owner, the Issuer shall be disregarded
as an entity separate from the owner, with the assets of the Issuer being the
Receivables and other assets held by the Issuer, the owner of the Receivables
being the sole Owner and the Notes being non-recourse debt of the sole Owner and
(ii) if there is more than one Owner, the Issuer shall be treated as a
partnership for income and franchise tax purposes, with the assets of the
partnership being the Receivables and other assets held by the Issuer and with
the partners of the partnership being the Owners and the Notes being debt of the
partnership. The parties agree that, unless otherwise required by appropriate
tax authorities, the Issuer will file or cause to be filed annual or other
necessary returns, reports and other forms consistent with the characterization
of the Issuer as provided in the preceding sentence for such tax purposes.
Effective as of the date hereof, the Owner Trustee and the Delaware Trustee, as
applicable, shall have all rights, powers and duties set forth herein and in the
Statutory Trust Statute for the sole purpose and to the extent necessary to
accomplish the purpose of the Issuer as set forth in Section 2.03(a).

         Section 2.07. Liability of Owners. The Owners shall be entitled to the
same limitation of personal liability extended to stockholders of private
corporations for profit organized under the general corporation law of the State
of Delaware.

         Section 2.08. Title to Trust Property. Legal title to the Owner Trust
Estate shall be vested at all times in the Issuer as a separate legal entity
except where applicable law in any jurisdiction requires title to any part of
the Owner Trust Estate to be vested in a trustee or trustees, in which case
title shall be deemed to be vested in the Owner Trustee, a co-trustee and/or a
separate trustee, as the case may be.

         Section 2.09. Situs of Issuer. The Issuer will be located in the State
of Delaware. All bank accounts maintained by the Owner Trustee on behalf of the
Issuer shall be located in the states of Delaware or New York. The Issuer shall
not have any employees in any state other than Delaware; provided, however, that
nothing herein shall restrict or prohibit the Owner Trustee from having
employees within or without the State of Delaware. Payments will be received by
the Issuer only in, and payments will be made by the Issuer only from, the
states of Delaware or New York. The only office of the Issuer will be at the
Corporate Trust Office.

                                       7

<PAGE>

         Section 2.10. Representations and Warranties of the Depositor. The
Depositor hereby represents and warrants to the Owner Trustee and the Delaware
Trustee that:

         (a) The Depositor has been duly organized and is validly existing as a
corporation in good standing under the laws of the State of California, with
power and authority to own its properties and to conduct its business as such
properties are currently owned and such business is presently conducted, and had
at all relevant times, and has, power, authority and legal right to acquire, own
and sell the Receivables.

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

         (c) The Depositor has the power and authority to execute and deliver
this Agreement and to carry out its terms; the Depositor has full power and
authority to sell and assign the property to be sold and assigned to and
deposited with the Owner Trustee as part of the Owner Trust Estate and the
Depositor has duly authorized such sale and assignment and deposit to the Issuer
by all necessary corporate action; and the execution, delivery and performance
of this Agreement have been duly authorized by the Depositor by all necessary
corporate action.

         (d) This Agreement constitutes a legal, valid and binding obligation of
the Depositor, enforceable in accordance with its terms, except as such
enforceability may be subject to or limited by bankruptcy, insolvency,
reorganization, moratorium, liquidation, fraudulent conveyance or other similar
laws affecting the enforcement of creditors' rights in general and by general
principles of equity, regardless of whether such enforceability shall be
considered in a proceeding in equity or in law.

         (e) The execution, delivery and performance by the Depositor of this
Agreement and the consummation of the transactions contemplated by this
Agreement and the fulfillment of the terms hereof do not conflict with, result
in any breach of any of the terms and provisions of, nor constitute (with or
without notice or lapse of time) a default under, the articles of incorporation
or bylaws of the Depositor, or conflict with or violate any of the material
terms or provisions of, or constitute (with or without notice or lapse of time)
a default under, any indenture, agreement or other instrument to which the
Depositor is a party or by which it is bound; nor result in the creation or
imposition of any Lien upon any of its properties pursuant to the terms of any
such indenture, agreement or other instrument (other than pursuant to the Basic
Documents); nor violate any law or, to the best of the Depositor's knowledge,
any order, rule or regulation applicable to the Depositor of any court or of any
federal or state regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over the Depositor or its properties; which
breach, default, conflict, lien or violation would have a material adverse
effect on the earnings, business affairs or business prospects of the Depositor.

         (f) There are no proceedings or investigations pending or, to the
Depositor's knowledge, threatened, before any court, regulatory body,
administrative agency or other governmental instrumentality having jurisdiction
over the Depositor or its properties: (i) asserting the invalidity of this
Agreement, (ii) seeking to prevent the issuance of the Trust Certificates or the
consummation of any of the transactions contemplated by this Agreement or

                                       8

<PAGE>

(iii) seeking any determination or ruling that might materially and adversely
affect the performance by the Depositor of its obligations under, or the
validity or enforceability of, this Agreement.

                                 ARTICLE THREE

                  TRUST CERTIFICATES AND TRANSFER OF INTERESTS

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

         Section 3.02. The Trust Certificates. The Trust Certificates shall be
issued in minimum denominations of $100,000 and integral multiples thereof;
provided, however, that one Trust Certificate may be issued in such denomination
as required to include any residual amount. The Trust Certificates shall be
executed by the Owner Trustee on behalf of the Issuer by manual or facsimile
signature of an authorized officer of the Owner Trustee and shall have deemed to
have been validly issued when so executed and authenticated (as set forth in
Section 3.03 below). Trust Certificates bearing the manual or facsimile
signatures of individuals who were, at the time when such signatures were
affixed, authorized to sign on behalf of the Owner Trustee, shall be validly
issued and binding obligations of the Issuer and entitled to the benefit of this
Agreement, notwithstanding that such individuals or any of them shall have
ceased to be so authorized prior to the authentication and delivery of such
Trust Certificates or did not hold such offices at the date of authentication
and delivery of such Trust Certificates.

         A transferee of a Trust  Certificate  shall become a  Certificateholder
and  shall be  entitled  to the  rights  and  subject  to the  obligations  of a
Certificateholder  hereunder  upon  such  transferee's  acceptance  of  a  Trust
Certificate duly registered in such transferee's name pursuant to Section 3.04.

         Section 3.03. Authentication and Delivery of Trust Certificates. On the
Closing Date, the Owner Trustee shall cause to be authenticated and delivered
upon the order of the Depositor, in exchange for the Receivables and the other
assets of the Issuer, simultaneously with the sale, assignment and transfer to
the Issuer of the Receivables, and the constructive delivery to the Issuer of
the Receivable Files and the other assets of the Issuer, Trust Certificates duly
authenticated by the Owner Trustee, in authorized denominations equaling in the
aggregate the Original Certificate Balance and evidencing the entire ownership
of the Issuer. No Trust Certificate shall entitle its Holder to any benefit
under this Agreement, or be valid for any purpose, unless there shall appear on
such Trust Certificate a certificate of authentication substantially in the form
set forth in Exhibit A, executed by the Owner Trustee or its authenticating
agent, by manual signature; and such authentication shall constitute conclusive
evidence that such Trust Certificate shall have been duly authenticated and
delivered hereunder. All Trust Certificates shall be dated the date of their
authentication. Upon issuance, authentication and delivery pursuant to the terms
hereof, the Trust Certificates will be entitled to the benefits of this
Agreement. Whenever, in any Basic Document, a reference is made to
authentication by the Owner Trustee, such reference shall include authentication
by the Owner Trustee or its authenticating agent.

                                       9

<PAGE>

         Section 3.04. Registration of Transfer and Exchange of Trust
Certificates.

         (a) The Certificate Registrar shall keep or cause to be kept, at the
office or agency maintained pursuant to Section 3.08, a Certificate Register in
which, subject to such reasonable regulations as it may prescribe, the Owner
Trustee shall provide for the registration of Trust Certificates and of
transfers and exchanges of Trust Certificates as herein provided. The Owner
Trustee shall act as initial Certificate Registrar. The Owner Trustee may
appoint an agent to act as Certificate Registrar. Upon any resignation of the
Certificate Registrar, the Owner Trustee shall promptly appoint a successor
thereto.

         The Trust Certificates have not been registered under the Securities
Act or listed on any securities exchange. No transfer of a Trust Certificate
shall be made unless such transfer is made pursuant to an effective registration
statement under the Securities Act and any applicable state securities laws or
is exempt from the registration requirements under the Securities Act and such
state securities laws. In the event that a transfer is to be made in reliance
upon an exemption from the Securities Act and state securities laws, in order to
assure compliance with the Securities Act and such laws, the Holder desiring to
effect such transfer and such Holder's prospective transferee shall each certify
to the Issuer in writing the facts surrounding the transfer in the form of a
Seller Certificate and Investment Letter or a Rule 144A Letter. Except in the
case of a transfer as to which the proposed transferee has provided a Rule 144A
Letter, there shall also be delivered to the Issuer an Opinion of Counsel that
such transfer may be made pursuant to an exemption from the Securities Act and
an Opinion of Counsel or memorandum of law that such transfer may be made
pursuant to an exemption from state securities laws, which Opinion(s) of Counsel
and memorandum of law shall not be an expense of the Issuer or the Owner
Trustee. The Depositor shall provide to any Holder of a Trust Certificate and
any prospective transferee designated by any such Holder, information regarding
the Trust Certificates and the Receivables and such other information as shall
be necessary to satisfy the condition to eligibility set forth in Rule
144A(d)(4) for transfer of any such Trust Certificate without registration
thereof under the Securities Act pursuant to the registration exemption provided
by Rule 144A. Each Holder of a Trust Certificate desiring to effect such a
transfer shall, and does hereby agree to, indemnify the Issuer, the Owner
Trustee and the Depositor against any liability that may result if the transfer
is not so exempt or is not made in accordance with federal and state securities
laws. The Owner Trustee on behalf of the Issuer shall cause each Trust
Certificate to contain a legend in the form set forth on the form of Trust
Certificate attached hereto as Exhibit A.

         (b) Upon surrender for registration of transfer of any Trust
Certificate at the office of the Certificate Registrar and subject to the
satisfaction of the preceding paragraph, the Owner Trustee shall execute,
authenticate and deliver (or shall cause its authenticating agent to
authenticate and deliver), in the name of the designated transferee or
transferees, one or more new Trust Certificates in authorized denominations of a
like aggregate original certificate balance dated the date of authentication by
the Owner Trustee or any authenticating agent; provided that prior to such
execution, authentication and delivery, the Owner Trustee shall have received an
Opinion of Counsel to the effect that the proposed transfer will not cause the
Issuer to be characterized, as an association (or a publicly traded partnership)
taxable as a corporation or alter the tax characterization of the Notes for
federal income tax purposes. At the option of a Holder, Trust Certificates may
be exchanged for other Trust Certificates of authorized

                                       10

<PAGE>

denominations of a like aggregate original certificate balance upon surrender of
the Trust Certificates to be exchanged at the office or agency maintained
pursuant to Section 3.08.

         (c) At the option of a Certificateholder, Trust Certificates may be
exchanged for other Trust Certificates in authorized denominations of a like
aggregate original certificate balance upon surrender of the Trust Certificates
to be exchanged at the office of the Certificate Registrar. Whenever any Trust
Certificates are so surrendered for exchange, the Owner Trustee on behalf of the
Issuer shall execute, authenticate and deliver (or shall cause its
authenticating agent to authenticate and deliver) the Trust Certificates that
the Certificateholder making the exchange is entitled to receive. Every Trust
Certificate presented or surrendered for registration of transfer or exchange
shall be accompanied by a written instrument of transfer in form satisfactory to
the Owner Trustee and the Certificate Registrar duly executed by the Holder or
such Holder's attorney duly authorized in writing.

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

         (e) The Trust Certificates may not be acquired by or for the account of
a Benefit Plan. No transfer of a Trust Certificate shall be made unless the
prospective transferee has certified to the Issuer in writing that it is not a
Benefit Plan.

         (f) All Trust Certificates surrendered for registration of transfer or
exchange, if surrendered to the Issuer or any agent of the Owner Trustee or the
Issuer under this Agreement, shall be delivered to the Owner Trustee and
promptly cancelled by it, or, if surrendered to the Owner Trustee, shall be
promptly cancelled by it, and no Trust Certificates shall be issued in lieu
thereof except as expressly permitted by any of the provisions of this
Agreement. The Owner Trustee shall dispose of cancelled Trust Certificates in
accordance with its normal practice.

         (g) The preceding provisions of this Section notwithstanding, the Owner
Trustee shall not make, and the Certificate Registrar shall not register
transfers or exchanges of, Trust Certificates for a period of 15 days preceding
the due date for any payment with respect to the Trust Certificates.

         Section 3.05. Mutilated, Destroyed, Lost or Stolen Trust Certificates.
If (i) any mutilated Trust Certificate is surrendered to the Certificate
Registrar, or the Certificate Registrar receives evidence to its satisfaction of
the destruction, loss or theft of any Trust Certificate and (ii) there is
delivered to the Certificate Registrar and the Owner Trustee such security or
indemnity as may be required by them to save each of them harmless, then, in the
absence of notice that such Trust Certificate has been acquired by a bona fide
purchaser, the Owner Trustee on behalf of the Issuer shall execute and the Owner
Trustee or its authenticating agent shall authenticate and deliver, in exchange
for or in lieu of any such mutilated, destroyed, lost or stolen Trust
Certificate, a new Trust Certificate in an authorized denomination and of a like
original certificate balance. In connection with the issuance of any new Trust
Certificate under this Section, the Owner Trustee may require the payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection therewith. Any duplicate Trust

                                       11

<PAGE>

Certificate issued pursuant to this Section shall constitute conclusive evidence
of ownership in the Trust, as if originally issued, whether or not the lost,
stolen or destroyed Trust Certificate shall be found at any time.

         Section 3.06. Persons Deemed Owners. Prior to due presentation of a
Trust Certificate for registration of transfer, the Owner Trustee, the
Certificate Registrar, any Paying Agent and any of their respective agents may
treat the Person in whose name any Trust Certificate is registered as the owner
of such Trust Certificate for the purpose of receiving distributions pursuant to
Section 5.02 and for all other purposes whatsoever, and none of the Owner
Trustee, the Certificate Registrar, any Paying Agent or any of their respective
agents shall be affected by any notice to the contrary.

         Section 3.07. Access to List of Certificateholders' Names and
Addresses. The Owner Trustee shall furnish or cause to be furnished to the
Servicer and the Depositor, within 15 days after receipt by the Owner Trustee of
a written request therefor from the Servicer or the Depositor, a list, in such
form as the Servicer or the Depositor may reasonably require, of the names and
addresses of the Certificateholders as of the most recent Record Date. If three
or more Certificateholders, or one or more Certificateholders evidencing not
less than 51% of the Percentage Interests of the Trust Certificates (hereinafter
referred to as the "Applicants"), apply in writing to the Owner Trustee, and
such application states that the Applicants desire to communicate with other
Certificateholders with respect to their rights under this Agreement or under
the Trust Certificates, then the Owner Trustee shall, within five Business Days
after the receipt of such application, afford such Applicants access during
normal business hours to the current list of Certificateholders. Each Holder, by
receiving and holding a Trust Certificate, shall be deemed to have agreed not to
hold any of the Depositor, the Certificate Registrar or the Owner Trustee
accountable by reason of the disclosure of its name and address, regardless of
the source from which such information was derived.

         Section 3.08. Maintenance of Office or Agency. The Owner Trustee shall
maintain in New York, New York, an office or offices or agency or agencies where
Trust Certificates may be surrendered for registration of transfer or exchange
and where notices and demands to or upon the Owner Trustee in respect of the
Trust Certificates and the Basic Documents may be served. The Owner Trustee
initially designates The Bank of New York, 101 Barclay Street, 8th Floor West,
New York, New York 10286, Attention: Asset Backed Securities Unit--Honda 2003-1
as its office for such purposes. The Owner Trustee shall give prompt written
notice to the Depositor and to the Certificateholders of any change in the
location of the Certificate Register or any such office or agency.

         Section 3.09. Appointment of Paying Agent. The Paying Agent shall make
distributions to Certificateholders from the Certificate Distribution Account
pursuant to Sections 5.02 and 5.03 and shall report the amounts of such
distributions to the Owner Trustee. Any Paying Agent shall have the revocable
power to withdraw funds from the Certificate Distribution Account for the
purpose of making the distributions referred to above. The Owner Trustee may
revoke such power and remove the Paying Agent if the Owner Trustee determines in
its sole discretion that the Paying Agent shall have failed to perform its
obligations under this Agreement in any material respect. The Owner Trustee
initially appoints The Bank of New York as the Paying Agent and any co-paying
agent chosen by the Paying Agent that is acceptable to the Owner

                                       12

<PAGE>

Trustee. Each Paying Agent shall be permitted to resign as Paying Agent upon 30
days' written notice to the Owner Trustee. In the event that The Bank of New
York shall no longer be the Paying Agent, the Owner Trustee shall appoint a
successor to act as Paying Agent (which shall be a bank or trust company). The
Owner Trustee shall cause such successor Paying Agent or any additional Paying
Agent appointed by the Owner Trustee to execute and deliver to the Owner Trustee
an instrument in which such successor Paying Agent or additional Paying Agent
shall agree with the Owner Trustee that, as Paying Agent, such successor Paying
Agent or additional Paying Agent will hold all sums, if any, held by it for
payment to the Certificateholders in trust for the benefit of the
Certificateholders entitled thereto until such sums shall be paid to such
Certificateholders. The Paying Agent shall return all unclaimed funds to the
Owner Trustee and upon removal of a Paying Agent such Paying Agent shall also
return all funds in its possession to the Owner Trustee. The provisions of
Sections 7.01, 7.03, 7.04, 8.01 and 8.02 shall apply to the Owner Trustee also
in its role as Paying Agent, for so long as the Owner Trustee shall act as
Paying Agent and, to the extent applicable, to any other paying agent appointed
hereunder. Any reference in this Agreement to the Paying Agent shall include any
co-paying agent unless the context requires otherwise.

         Section 3.10. Definitive Trust Certificates. The Trust Certificates,
upon original issuance, will be issued in definitive, fully registered form.

         Section 3.11. Repayment of Trust Certificates. In the event of an
optional purchase pursuant to Section 8.01 (a) of the Sale and Servicing
Agreement, the Trust Certificates will be prepaid in whole, but not in part, at
an aggregate prepayment price equal to the aggregate Certificate Balance of all
the Trust Certificates plus accrued interest thereon at the Certificate Rate.

                                  ARTICLE FOUR

                            ACTIONS BY OWNER TRUSTEE

         Section 4.01. Prior Notice to Owners with Respect to Certain Matters.
Subject to the provisions and limitations of Section 4.04, with respect to the
following matters, the Owner Trustee shall not take action unless at least 30
days before the taking of such action, the Owner Trustee shall have notified the
Certificateholders in writing of the proposed action and the Owners shall not
have notified the Owner Trustee in writing prior to the 30th day after such
notice is given that such Owners have withheld consent or provided alternative
direction:

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

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

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

                                       13

<PAGE>

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

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

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

         Section 4.02. Action by Owners with Respect to Certain Matters. Subject
to the provisions and limitations of Section 4.04, the Owner Trustee shall not
have the power, except upon the direction of the Owners, to (i) remove the
Administrator pursuant to Section 1.09 of the Administration Agreement, (ii)
appoint a successor Administrator pursuant to Section 1.09 of the Administration
Agreement, (iii) remove the Servicer pursuant to Section 7.02 of the Sale and
Servicing Agreement, (iv) except as expressly provided in the Basic Documents,
sell the Receivables after the termination of the Indenture, or (v) authorize
the merger or consolidation of the Issuer with or into any other statutory trust
or entity (other than in accordance with Section 3.10 of the Indenture). The
Owner Trustee shall take the actions referred to in the preceding sentence only
upon written instructions signed by the Owners.

         Section 4.03. Action by Owners with Respect to Bankruptcy. The Owner
Trustee shall not have the power to commence a voluntary proceeding in
bankruptcy relating to the Issuer without the unanimous prior approval of all
Owners (including the Depositor) and the delivery to the Owner Trustee by each
such Owner of a certificate certifying that such Owner reasonably believes that
the Issuer is insolvent.

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

         Section 4.05. Majority Control. Except as expressly provided herein,
any action that may be taken by the Owners under this Agreement may be taken by
the Holders of Trust Certificates evidencing not less than a majority of the
Percentage Interests evidenced by the Trust Certificates. Except as expressly
provided herein, any written notice of the Owners delivered pursuant to this
Agreement shall be effective if signed by Holders of Trust Certificates
evidencing not less than a majority of the Percentage Interests evidenced by the
Trust Certificates at the time of the delivery of such notice.

                                       14

<PAGE>

                                  ARTICLE FIVE

                   APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

         Section 5.01. Establishment of Trust Account. The Owner Trustee, for
the benefit of the Certificateholders, shall establish and maintain (or shall
cause to be established and maintained) in the name of the Issuer an Eligible
Account (the "Certificate Distribution Account"), bearing a designation clearly
indicating that the funds deposited therein are held for the benefit of the
Certificateholders.

         The Issuer shall possess all right, title and interest in funds on
deposit from time to time in the Certificate Distribution Account and in the
proceeds thereof. Except as otherwise expressly provided herein, the Certificate
Distribution Account shall be under the sole dominion and control of the Owner
Trustee for the benefit of the Certificateholders. If, at any time, the
Certificate Distribution Account ceases to be an Eligible Account, the Owner
Trustee (or the Depositor on behalf of the Owner Trustee, if the Certificate
Distribution Account is not then held by the Owner Trustee or an Affiliate
thereof) shall within ten Business Days (or such longer period, not to exceed 30
calendar days, as to which each Rating Agency may consent) establish a new
Certificate Distribution Account as an Eligible Account and shall transfer any
cash and/or any investments to such new Certificate Distribution Account. Monies
on deposit in the Certificate Distribution Account may be invested in Eligible
Investments upon the terms set forth in Section 4.01 of the Sale and Servicing
Agreement, as if the Certificate Distribution Account were an "Account".
Earnings on investments of funds in the Certificate Distribution Account shall
be paid to the Servicer as part of the Supplemental Servicing Fee and any losses
and investment expenses shall be charged against the funds in such account.

         Section 5.02. Application of Trust Funds.

         (a) On each Payment Date, the Paying Agent will distribute to
Certificateholders, on the basis of the Percentage Interest evidenced by their
Trust Certificates, amounts deposited in the Certificate Distribution Account
pursuant to Section 4.06 of the Sale and Servicing Agreement with respect to
such Payment Date.

         (b) On each Payment Date, the Paying Agent shall send to each
Certificateholder the statement or statements provided to the Owner Trustee by
the Servicer pursuant to Section 4.10 of the Sale and Servicing Agreement with
respect to such Payment Date.

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

                                       15

<PAGE>

If there is a possibility that withholding tax is payable with respect to a
distribution, the Owner Trustee may in its sole discretion withhold such amounts
in accordance with this paragraph (c).

         Section 5.03. Method of Payment. Subject to Section 9.01(c) respecting
the final payment upon retirement of each Trust Certificate, distributions
required to be made to Certificateholders on any Payment Date shall be made to
each Certificateholder of record on the related Record Date by wire transfer, in
immediately available funds, to the account of such Holder at a bank or other
entity having appropriate facilities therefor, if such Certificateholder shall
have provided to the Certificate Registrar appropriate written instructions at
least five Business Days prior to such Payment Date, or, if not, by check mailed
to such Certificateholder at the address of such Holder appearing in the
Certificate Register.

         Section 5.04. No Segregation of Monies; No Interest. Subject to
Sections 5.01 and 5.02, monies received by the Owner Trustee hereunder need not
be segregated in any manner except to the extent required by law or the Sale and
Servicing Agreement and may be deposited under such general conditions as may be
prescribed by law, and the Owner Trustee shall not be liable for any interest
thereon.

         Section 5.05. Accounting and Reports to Owners, Internal Revenue
Service and Others. The Owner Trustee shall maintain (or cause to be maintained)
the books of the Issuer on a fiscal year basis ending March 31 of each year and
the accrual method of accounting. In addition, the Issuer shall deliver to each
Owner such information, reports or statements as may be required by the Code and
applicable Treasury Regulations and as may be required to enable each Owner to
prepare its federal and state income tax returns. Consistent with the Issuer's
characterization for tax purposes, as disregarded as an entity separate from the
Owner, no federal income tax return shall be filed on behalf of the Issuer
unless either (i) the Owner Trustee shall receive an Opinion of Counsel that,
based on a change in applicable law occurring after the date hereof, the Code
requires such a filing or (ii) the Internal Revenue Service shall determine that
the Issuer is required to file such a return. Neither the Owner Trustee nor any
Certificateholder will, under any circumstances, and at any time, make an
election on IRS Form 8832 or otherwise, to classify the Trust as an association
taxable as a corporation for federal, state or any other applicable tax purpose.
In the event that the Issuer is required to file tax returns, the Owner Trustee
shall prepare or shall cause to be prepared any tax returns required to be filed
by the Issuer and shall remit such returns to the Depositor (or if the Depositor
no longer owns any Certificates, the Owner designated for such purpose by the
Depositor to the Owner Trustee in writing) at least five days before such
returns are due to be filed. The Depositor (or such designee Owner, as
applicable) shall promptly sign such returns and deliver such returns after
signature to the Owner Trustee and such returns shall be filed by the Owner
Trustee with the appropriate tax authorities. In no event shall the Owner
Trustee or the Depositor (or such designee Owner, as applicable) be liable for
any liabilities, costs or expenses of the Issuer or the Noteholders arising out
of the application of any tax law, including federal, state, foreign or local
income or excise taxes or any other tax imposed on or measured by income (or any
interest, penalty or addition with respect thereto or arising from a failure to
comply therewith) except for any such liability, cost or expense attributable to
any act or omission by the Owner Trustee or the Depositor (or such designee
Owner, as applicable), as the case may be, in breach of its obligations under
this Agreement.

                                       16

<PAGE>

                                  ARTICLE SIX

                      AUTHORITY AND DUTIES OF OWNER TRUSTEE

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

         Section 6.02. General Duties. Subject to the provisions and limitations
of Sections 2.03 and 2.06, it shall be the duty of the Owner Trustee to
discharge (or cause to be discharged) all of its responsibilities pursuant to
the terms of this Agreement and the other Basic Documents to which the Issuer is
a party and to administer the Issuer in the interest of the Owners, subject to
the Basic Documents and in accordance with the provisions of this Agreement.
Notwithstanding the foregoing, the Owner Trustee shall be deemed to have
discharged its duties and responsibilities hereunder and under the other Basic
Documents to the extent the Administrator has agreed in the Administration
Agreement to perform any act or to discharge any duty of the Owner Trustee
hereunder or under any Basic Document, and the Owner Trustee shall not be held
liable for the default or failure of the Administrator to carry out its
obligations under the Administration Agreement.

         Section 6.03. Action Upon Instruction.

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

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

         (c) Whenever the Owner Trustee is unable to decide between alternative
courses of action permitted or required by the terms of this Agreement or under
any other Basic Document, the Owner Trustee shall promptly give notice (in such
form as shall be appropriate under the circumstances) to the Owners requesting
instruction as to the course of action to be adopted, and to the extent the
Owner Trustee acts in good faith in accordance with any written instruction of
the Owners received, the Owner Trustee shall not be liable on account of such
action to any Person. If the Owner Trustee shall not have received appropriate
instruction within ten days of such notice (or within such shorter period of
time as reasonably may be specified in such notice

                                       17

<PAGE>

or may be necessary under the circumstances) it may, but shall be under no duty
to, take or refrain from taking such action not inconsistent with this Agreement
and the other Basic Documents, as it shall deem to be in the best interests of
the Owners, and shall have no liability to any Person for such action or
inaction.

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

         Section 6.04. No Duties Except as Specified in this Agreement or in
Instructions. The Owner Trustee shall not have any duty or obligation to manage,
make any payment with respect to, register, record, sell, dispose of, or
otherwise deal with the Owner Trust Estate, or to otherwise take or refrain from
taking any action under, or in connection with, any document contemplated hereby
to which the Owner Trustee is a party, except as expressly provided by the terms
of this Agreement or in any document or written instruction received by the
Owner Trustee pursuant to Section 6.03; and no implied duties or obligations
shall be read into this Agreement or any other Basic Document against the Owner
Trustee. The Owner Trustee shall have no responsibility for filing any financing
or continuation statement in any public office at any time or to otherwise
perfect or maintain the perfection of any security interest or lien granted to
it hereunder or to prepare or file any Commission filing for the Issuer or to
record this Agreement or any other Basic Document. The Owner Trustee
nevertheless agrees that it will, at its own cost and expense, promptly take all
action as may be necessary to discharge any liens (other than the lien of the
Indenture) on any part of the Owner Trust Estate that result from actions by, or
claims against, the Owner Trustee that are not related to the ownership or the
administration of the Owner Trust Estate.

         Section 6.05. No Action Except Under Specified Documents or
Instructions. The Owner Trustee shall not manage, control, use, sell, dispose of
or otherwise deal with any part of the Owner Trust Estate except in accordance
with (i) the powers granted to and the authority conferred upon the Owner
Trustee pursuant to this Agreement, (ii) the Basic Documents and (iii) any
document or instruction delivered to the Owner Trustee pursuant to Section 6.03.

         Section 6.06. Restrictions. The Owner Trustee shall not take any action
(i) that is inconsistent with the purposes of the Issuer set forth in Section
2.03 or (ii) that, to the actual knowledge of the Owner Trustee, would result in
the Issuer's becoming taxable as a corporation

                                       18
<PAGE>

for federal or state income tax purposes. The Owners shall not direct the Owner
Trustee to take action that would violate the provisions of this Section.

                                 ARTICLE SEVEN

              CONCERNING THE OWNER TRUSTEE AND THE DELAWARE TRUSTEE

         Section 7.01. Acceptance of Trusts and Duties. Each of the Owner
Trustee and the Delaware Trustee accepts the trusts hereby created and each
agrees to perform its duties hereunder with respect to such trusts, but only
upon the terms of this Agreement. Each of the Owner Trustee and the Delaware
Trustee also agrees to disburse all monies actually received by it constituting
part of the Owner Trust Estate upon the terms of this Agreement and the other
Basic Documents. Neither the Owner Trustee nor the Delaware Trustee shall be
answerable or accountable hereunder or under any other Basic Document under any
circumstances, except (i) for its own willful misconduct, bad faith or gross
negligence or (ii) in the case of the inaccuracy of any representation or
warranty contained in Section 7.03 expressly made by the Owner Trustee or the
Delaware Trustee. In particular, but not by way of limitation (and subject to
the exceptions set forth in the preceding sentence):

         (a) neither the Owner Trustee nor the Delaware Trustee shall be liable
for any error of judgment made in good faith by the Owner Trustee or the
Delaware Trustee;

         (b) neither the Owner Trustee nor the Delaware Trustee shall be liable
with respect to any action taken or omitted to be taken by it in accordance with
the instructions of the Administrator or any Owner or Owners;

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

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

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

         (f) neither the Owner Trustee nor the Delaware Trustee shall be liable
for the default or misconduct of the Administrator, the Seller, the Depositor,
the Indenture Trustee or the

                                       19

<PAGE>

Servicer under any Basic Document or otherwise, and neither the Owner Trustee
nor the Delaware Trustee shall have any obligation or liability to perform the
obligations of the Issuer under this Agreement or the other Basic Documents that
are required to be performed by the Administrator under the Administration
Agreement, the Indenture Trustee under the Indenture or the Servicer or the
Seller under the Sale and Servicing Agreement or any other Person under any of
the Basic Documents; and

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

         Section 7.02. Furnishing of Documents.

         The Owner Trustee shall furnish to the Owners, promptly upon receipt of
a written request therefor, duplicates or copies of all reports, notices,
requests, demands, certificates, financial statements and any other instruments
furnished to the Owner Trustee under the Basic Documents.

         Section 7.03. Representations and Warranties of the Owner Trustee and
the Delaware Trustee. (X) The Owner Trustee hereby represents and warrants to
the Depositor and the Owners, that:

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

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

         (c) neither the execution nor the delivery by it of this Agreement, nor
the consummation by it of the transactions contemplated hereby, nor compliance
by it with any of the terms or provisions hereof will contravene any federal,
Delaware or New York law, governmental rule or regulation governing the banking
or trust powers of the Owner Trustee or any judgment or order binding on it, or
constitute any default under its charter documents or bylaws; and

         (d) this Agreement constitutes a legal, valid and binding obligation of
the Owner Trustee, enforceable against the Owner Trustee in accordance with its
terms, except as such enforceability may be subject to or limited by bankruptcy,
insolvency, reorganization,

                                       20

<PAGE>

moratorium, liquidation, fraudulent conveyance or other similar laws affecting
the enforcement of creditors' rights in general and by general principles of
equity, regardless of whether such enforceability shall be considered in a
proceeding in equity or in law; and

         (e) the execution, delivery and performance by the Owner Trustee of
this Agreement and the consummation of the transactions contemplated by this
Agreement and the fulfillment of the terms hereof do not conflict with, result
in any breach of any of the terms and provisions of, nor constitute (with or
without notice or lapse of time) a default under, the charter documents or
bylaws of the Owner Trustee; nor result in the creation or imposition of any
Lien upon any of its properties pursuant to the terms of any such indenture,
agreement or other instrument (other than pursuant to the Basic Documents); and

         (f) there are no proceedings or investigations pending or, to the Owner
Trustee's actual knowledge, threatened, before any court, regulatory body,
administrative agency or other governmental instrumentality having jurisdiction
over the Owner Trustee or its properties: (i) asserting the invalidity of this
Agreement or (ii) seeking any determination or ruling that might materially and
adversely affect the performance by the Owner Trustee of its obligations under,
or the validity or enforceability of, this Agreement.

         (Y) The Delaware Trustee hereby represents and warrants to the
Depositor and the Owners, that:

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

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

         (c) neither the execution nor the delivery by it of this Agreement, nor
the consummation by it of the transactions contemplated hereby, nor compliance
by it with any of the terms or provisions hereof will contravene any federal or
Delaware law, governmental rule or regulation governing the banking or trust
powers of the Delaware Trustee or any judgment or order binding on it, or
constitute any default under its charter documents or bylaws; and

         (d) this Agreement constitutes a legal, valid and binding obligation of
the Delaware Trustee, enforceable against the Delaware Trustee in accordance
with its terms, except as such enforceability may be subject to or limited by
bankruptcy, insolvency, reorganization, moratorium, liquidation, fraudulent
conveyance or other similar laws affecting the enforcement of creditors' rights
in general and by general principles of equity, regardless of whether such
enforceability shall be considered in a proceeding in equity or in law; and

         (e) the execution, delivery and performance by the Delaware Trustee of
this Agreement and the consummation of the transactions contemplated by this
Agreement and the fulfillment of the terms hereof do not conflict with, result
in any breach of any of the terms and provisions of, nor constitute (with or
without notice or lapse of time) a default under, the charter documents or
bylaws of the Delaware Trustee; nor result in the creation or imposition of any

                                       21

<PAGE>

Lien upon any of its properties pursuant to the terms of any such indenture,
agreement or other instrument (other than pursuant to the Basic Documents); and

         (f) there are no proceedings or investigations pending or, to the
Delaware Trustee's actual knowledge, threatened, before any court, regulatory
body, administrative agency or other governmental instrumentality having
jurisdiction over the Delaware Trustee or its properties: (i) asserting the
invalidity of this Agreement or (ii) seeking any determination or ruling that
might materially and adversely affect the performance by the Delaware Trustee of
its obligations under, or the validity or enforceability of, this Agreement.

         Section 7.04. Reliance, Advice of Counsel.

         (a) The Owner Trustee and the Delaware Trustee shall incur no liability
to anyone in acting upon any signature, instrument, notice, resolution, request,
consent, order, certificate, report, opinion, bond or other document or paper
believed by it to be genuine and believed by it to be signed by the proper party
or parties. The Owner Trustee or the Delaware Trustee may accept a certified
copy of a resolution of the board of directors or other governing body of any
corporate party as conclusive evidence that such resolution has been duly
adopted by such body and that the same is in full force and effect. As to any
fact or matter the method of determination of which is not specifically
prescribed herein, the Owner Trustee and the Delaware Trustee may for all
purposes hereof rely on a certificate, signed by the president or any vice
president or by the treasurer or other authorized officers of the relevant
party, as to such fact or matter, and such certificate shall constitute full
protection to the Owner Trustee or the Delaware Trustee, for any action taken or
omitted to be taken by it in good faith in reliance thereon.

         (b) In the exercise or administration of the trusts hereunder and in
the performance of its duties and obligations under this Agreement and the other
Basic Documents, the Owner Trustee and the Delaware Trustee (i) may act directly
or through its agents or attorneys pursuant to agreements entered into with any
of them, and the Owner Trustee and the Delaware Trustee shall not be liable for
the conduct or misconduct of such agents or attorneys if such agents or
attorneys shall have been selected by the Owner Trustee or the Delaware Trustee
with reasonable care, and (ii) may consult with counsel, accountants and other
skilled persons to be selected with reasonable care and employed by it. The
Owner Trustee and the Delaware Trustee shall not be liable for anything done,
suffered or omitted in good faith by it in accordance with the written opinion
or advice of any such counsel, accountants or other such persons and not
contrary to this Agreement or any other Basic Document.

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

         Section 7.06. Owner Trustee and Delaware Trustee Not Liable for Trust
Certificates or Receivables. The recitals contained herein and in the Trust
Certificates (other than the signature of the Owner Trustee and the certificate
of authentication on the Trust Certificates) shall be taken

                                       22
<PAGE>

as the statements of the Depositor, and the Owner Trustee and the Delaware
Trustee assume no responsibility for the correctness thereof. The Owner Trustee
and the Delaware Trustee make no representations as to the validity or
sufficiency of this Agreement, any other Basic Document or the Trust
Certificates (other than the signature of the Owner Trustee and the certificate
of authentication on the Trust Certificates and the representations and
warranties in Section 7.03) or the Notes, or of any Receivable or related
documents. The Owner Trustee and the Delaware Trustee shall at no time have any
responsibility or liability for or with respect to the legality, validity and
enforceability of any Receivable, or the perfection and priority of any security
interest created by any Receivable in any Financed Vehicle or the maintenance of
any such perfection and priority, or for or with respect to the sufficiency of
the Owner Trust Estate or its ability to generate the payments to be distributed
to Certificateholders under this Agreement or the Noteholders under the
Indenture, including, without limitation, the existence, condition and ownership
of any Financed Vehicle; the existence and enforceability of any insurance
thereon; the existence and contents of any Receivable on any computer or other
record thereof; the validity of the assignment of any Receivable to the Issuer
or of any intervening assignment; the completeness of any Receivable; the
performance or enforcement of any Receivable; the compliance by the Depositor or
the Servicer with any warranty or representation made under any Basic Document
or in any related document or the accuracy of any such warranty or
representation, or any action of the Administrator, the Indenture Trustee or the
Servicer or any subservicer taken in the name of the Owner Trustee.

         Section 7.07. Owner Trustee and Delaware Trustee May Own Trust
Certificates and Notes. The Owner Trustee or the Delaware Trustee in their
individual or any other capacity may become the owner or pledgee of Trust
Certificates or Notes and may deal with the Depositor, the Administrator, the
Indenture Trustee and the Servicer in banking transactions with the same rights
as it would have if it were not Owner Trustee or Delaware Trustee, respectively.

         Section 7.08. Duties of the Delaware Trustee. The Delaware Trustee is
appointed to serve as the trustee of the Trust in the State of Delaware for the
sole purpose of satisfying the requirement of Section 3807(a) of the Delaware
Act that the Trust have at least one trustee with a principal place of business
in Delaware. It is understood and agreed by the parties hereto that the Delaware
Trustee shall have none of the duties or liabilities of the Owner Trustee. The
duties of the Delaware Trustee shall be limited to (a) accepting legal process
served on the Trust in the State of Delaware and (b) the execution of any
certificates required to be filed with the Secretary of State of the State of
Delaware which the Delaware Trustee is required to execute under Section 3811 of
the Delaware Act. To the extent that, at law or in equity, the Delaware Trustee
has duties (including fiduciary duties) and liabilities relating thereto to the
Trust, the beneficial owners thereof or any other person, it is hereby
understood and agreed by the other parties hereto that such duties and
liabilities are replaced by the duties and liabilities of the Delaware Trustee
expressly set forth in this Section 7.08. The Delaware Trustee shall have all
the rights, privileges and immunities of the Owner Trustee.

                                       23

<PAGE>

                                 ARTICLE EIGHT

              COMPENSATION OF OWNER TRUSTEE AND THE DELWARE TRUSTEE

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

         Section 8.02. Indemnification. The Issuer shall be liable as primary
obligor for, and shall indemnify the Indemnified Parties from and against, any
and all Expenses which may at any time be imposed on, incurred by, or asserted
against the Owner Trustee, the Delaware Trustee or any other Indemnified Party
in any way relating to or arising out of this Agreement, the other Basic
Documents, the Owner Trust Estate, the administration of the Owner Trust Estate
or the action or inaction of the Owner Trustee or any other Indemnified Party
hereunder, except only that the Issuer shall not be liable for or required to
indemnify an Indemnified Party from and against Expenses arising or resulting
from any of the matters described in the third sentence of Section 7.01. The
indemnities contained in this Section shall survive the resignation or
termination of the Owner Trustee, the Delaware Trustee or the termination of
this Agreement. In the event of any claim, action or proceeding for which
indemnity will be sought pursuant to this Section, the Owner Trustee's or the
Delaware Trustee's choice of legal counsel shall be subject to the approval of
the Depositor (or if the Depositor is no longer an owner, the designee of the
Depositor), which approval shall not be unreasonably withheld.

         Section 8.03. Payments to the Owner Trustee and to the Delaware
Trustee. Any amounts paid to the Owner Trustee and to the Delaware Trustee
pursuant to this Article shall be deemed not to be a part of the Owner Trust
Estate immediately after such payment. Any amounts owing to the Owner Trustee
under this Agreement or the other Basic Documents shall constitute a claim
against the Owner Trust Estate.

                                  ARTICLE NINE

                         TERMINATION OF TRUST AGREEMENT

         Section 9.01. Termination of Trust Agreement.

         (a) This Agreement (other than Article Eight) and the Issuer shall
terminate in accordance with Section 3808 of the Statutory Trust Statute and be
of no further force or effect upon the earlier to occur of (i) the purchase on
any Payment Date by the Servicer, or any successor Servicer, at its option,
pursuant to Section 8.01(a) of the Sale and Servicing Agreement, of the Owner
Trust Estate other than the Accounts and the Certificate Distribution Account,
(ii) the final distribution by the Owner Trustee of all monies or other property
or

                                       24

<PAGE>

proceeds of the Owner Trust Estate in accordance with the terms of the
Indenture, the Sale and Servicing Agreement and Article Five or (iii) the
Payment Date next succeeding the month which is one year after the maturity or
other liquidation of the last Receivable and the disposition of any amount
received upon liquidation of any property remaining in the Owner Trust Estate.
The bankruptcy, liquidation, dissolution, death or incapacity of any Owner shall
not (i) operate to terminate this Agreement or the Issuer, (ii) entitle such
Owner's legal representatives or heirs to claim an accounting or to take any
action or proceeding in any court for a partition or winding up of all or any
part of the Issuer or Owner Trust Estate or (iii) otherwise affect the rights,
obligations and liabilities of the parties hereto.

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

         (c) The outstanding Trust Certificates are subject to redemption in
whole, but not in part, pursuant to Section 8.01 of the Sale and Servicing
Agreement; provided that the Issuer has available funds sufficient to pay the
aggregate Certificate Balance of all the Trust Certificates, together with
accrued interest at the Certificate Rate to but excluding the Payment Date.
Notice of any termination of the Issuer, specifying the Payment Date upon which
Certificateholders shall surrender their Trust Certificates to the Paying Agent
for payment of the final distribution and cancellation, shall be given by the
Owner Trustee by letter to Certificateholders mailed within five Business Days
of receipt of notice of such termination from the Servicer given pursuant to
Section 8.01(b) of the Sale and Servicing Agreement, stating (i) the Payment
Date upon or with respect to which final payment of the Trust Certificates shall
be made upon presentation and surrender of the Trust Certificates at the office
of the Paying Agent therein designated, (ii) the amount of any such final
payment and (iii) that the Record Date otherwise applicable to such Payment Date
is not applicable, payments being made only upon presentation and surrender of
the Trust Certificates at the office of the Paying Agent therein specified. The
Owner Trustee shall give such notice to the Certificate Registrar (if other than
the Owner Trustee) and the Paying Agent at the time such notice is given to
Certificateholders. Upon presentation and surrender of the Trust Certificates,
the Paying Agent shall cause to be distributed to Certificateholders amounts
distributable on such Payment Date pursuant to Section 5.02. The Owner Trustee
shall promptly notify each Rating Agency upon the final payment of the Trust
Certificates.

         (d) In the event that all of the Certificateholders shall not surrender
their Trust Certificates for cancellation within six months after the date
specified in the above mentioned written notice, the Owner Trustee shall give a
second written notice to the remaining Certificateholders to surrender their
Trust Certificates for cancellation and receive the final distribution with
respect thereto. If within one year after the second notice all the Trust
Certificates shall not have been surrendered for cancellation, the Owner Trustee
may take appropriate steps, or may appoint an agent to take appropriate steps,
to contact the remaining Certificateholders concerning surrender of their Trust
Certificates, and the cost thereof shall be paid out of the funds and other
assets that shall remain subject to this Agreement. Subject to applicable
escheat laws, any funds remaining in the Issuer after exhaustion of such
remedies shall be distributed by the Owner Trustee to the Depositor, in its
capacities as Depositor and as Holder of such Certificate.

                                       25

<PAGE>

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

                                  ARTICLE TEN

                     SUCCESSOR AND ADDITIONAL OWNER TRUSTEES

         Section 10.01. Eligibility Requirements for Owner Trustee and Delaware
Trustee. The Delaware Trustee shall at all times be a corporation satisfying the
provisions of Section 3807(a) of the Statutory Trust Statute. The Owner Trustee
shall at all times (i) be authorized to exercise corporate trust powers, (ii)
have a combined capital and surplus of at least $50,000,000, (iii) be subject to
supervision or examination by federal or state authorities and (iv) have the
Required Rating. If such corporation shall publish reports of condition at least
annually pursuant to law or to the requirements of the aforesaid supervising or
examining authority, then for the purpose of this Section, the combined capital
and surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. In
case at any time the Owner Trustee shall cease to be eligible in accordance with
the provisions of this Section, the Owner Trustee shall resign immediately in
the manner and with the effect specified in Section 10.02.

         Section 10.02. Resignation or Removal of Owner Trustee. The Owner
Trustee or Delaware Trustee may at any time resign and be discharged from the
trusts hereby created by giving written notice thereof to the Administrator.
Upon receiving such notice of resignation, the Administrator shall promptly
appoint a successor Owner Trustee or Delaware Trustee, as applicable, by written
instrument, in duplicate, one copy of which instrument shall be delivered to the
resigning Owner Trustee or Delaware Trustee, as applicable, and one copy to the
successor Owner Trustee or Delaware Trustee, as applicable. If no successor
Owner Trustee or Delaware Trustee, as applicable, shall have been so appointed
and have accepted appointment within 30 days after the giving of such notice of
resignation, the resigning Owner Trustee may petition at the Issuer's expense
any court of competent jurisdiction for the appointment of a successor Owner
Trustee or Delaware Trustee, as applicable.

         If at any time the Owner Trustee or Delaware Trustee, as applicable,
shall cease to be eligible in accordance with Section 10.01 and shall fail to
resign after written request therefor by the Administrator, or if at any time
the Owner Trustee or Delaware Trustee, as applicable, shall be legally unable to
act, or shall be adjudged bankrupt or insolvent, or a receiver of the Owner
Trustee or Delaware Trustee, as applicable, or of either of their property shall
be appointed, or any public officer shall take charge or control of the Owner
Trustee or Delaware Trustee or of either of their property or affairs for the
purpose of rehabilitation, conservation or liquidation, then the Administrator
may remove the Owner Trustee or Delaware Trustee, as applicable. If the
Administrator shall remove the Owner Trustee or Delaware Trustee, as applicable,
under the authority of the immediately preceding sentence, the Administrator
shall promptly appoint a successor Owner Trustee or Delaware Trustee, as
applicable, by written instrument, in duplicate, one copy of which instrument
shall be delivered to the outgoing Owner Trustee or Delaware Trustee, as
applicable, so removed and one copy to the successor Owner Trustee or Delaware

                                       26

<PAGE>

Trustee, as applicable, and shall pay all fees and expenses owed to the outgoing
Owner Trustee or Delaware Trustee, as applicable.

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

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

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

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

         Section 10.04. Merger or Consolidation of Owner Trustee or Delaware
Trustee. Any corporation into which the Owner Trustee or Delaware Trustee, as
applicable, may be merged or converted or with which it may be consolidated, or
any corporation resulting from any merger, conversion or consolidation to which
the Owner Trustee or Delaware Trustee, as applicable, shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Owner Trustee or Delaware Trustee, as applicable, shall be the
successor of the Owner Trustee or Delaware Trustee, as applicable, hereunder,
without the execution or filing of

                                       27

<PAGE>

any instrument or any further act on the part of any of the parties hereto,
anything herein to the contrary notwithstanding; provided, that such corporation
shall be eligible pursuant to Section 10.01 and, provided, further, that the
Owner Trustee or Delaware Trustee, as applicable, shall mail notice of such
merger or consolidation to each Rating Agency.

         Section 10.05. Appointment of Co-Trustee or Separate Trustee.
Notwithstanding any other provisions of this Agreement, at any time, for the
purpose of meeting any legal requirements of any jurisdiction in which any part
of the Owner Trust Estate or any Financed Vehicle may at the time be located,
the Administrator and the Owner Trustee acting jointly shall have the power and
shall execute and deliver all instruments to appoint one or more Persons
approved by the Administrator and Owner Trustee to act as co-trustee, jointly
with the Owner Trustee, or as separate trustee or separate trustees, of all or
any part of the Owner Trust Estate, and to vest in such Person, in such
capacity, such title to the Trust or any part thereof and, subject to the other
provisions of this Section, such powers, duties, obligations, rights and trusts
as the Administrator and the Owner Trustee may consider necessary or desirable.
If the Administrator shall not have joined in such appointment within 15 days
after the receipt by it of a request so to do, the Owner Trustee alone shall
have the power to make such appointment. No co-trustee or separate trustee under
this Agreement shall be required to meet the terms of eligibility as a successor
Owner Trustee pursuant to Section 10.01, except that such co-trustee or
successor trustee shall have the Required Rating, and no notice of the
appointment of any co-trustee or separate trustee shall be required pursuant to
Section 10.03.

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

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

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

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

         Any notice, request or other writing given to the Owner Trustee shall
be deemed to have been given to each of the then separate trustees and
co-trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Agreement and
the conditions of this Article. Each separate trustee and co-trustee, upon its
acceptance of the trusts conferred, shall be vested with the estates or property
specified in its

                                       28

<PAGE>

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

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

                                 ARTICLE ELEVEN

                                  MISCELLANEOUS

         Section 11.01. Supplements and Amendments.

         (a) This Agreement may be amended by the parties hereto with prior
written notice to each Rating Agency, without the consent of any
Securityholders, to cure any ambiguity, to correct or supplement any provisions
in this Agreement or for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions in this Agreement or of
modifying in any manner the rights of the Noteholders or the Certificateholders;
provided, however, that such action shall not, as evidenced by an Opinion of
Counsel, adversely affect in any material respect the interests of any
Noteholder or Certificateholder.

         (b) This Agreement may also be amended from time to time by the parties
hereto, with prior written notice to each Rating Agency, with the consent of the
Holders of Trust Certificates evidencing not less than a majority of the
Percentage Interests evidenced by the Trust Certificates and, if such amendment
materially and adversely affects the interests of the Noteholders, with the
consent of Holders (as such term is defined in the Indenture) of Notes
evidencing not less than a majority of the Outstanding Amount of the Notes, for
the purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of this Agreement or of modifying in any manner the rights
of the Noteholders or the Certificateholders; provided, however, that no such
amendment shall (i) increase or reduce in any manner the amount of, or
accelerate or delay the timing of, collections of payments on Receivables or
distributions that shall be required to be made for the benefit of the
Noteholders or the Certificateholders, (ii) increase or reduce any Interest Rate
or Certificate Rate or (iii) reduce the aforesaid percentage of the Outstanding
Amount of the Notes or of the Percentage Interests evidenced by the Trust
Certificates required to consent to any such amendment, without the consent of
the Holders of all the outstanding Notes and Trust Certificates affected
thereby.

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

                                       29

<PAGE>

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

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

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

         Section 11.02. No Legal Title to Owner Trust Estate in Owner. The Owner
shall not have legal title to any part of the Owner Trust Estate. The Owners
shall be entitled to receive distributions with respect to their undivided
ownership interest therein only in accordance with Articles Five and Nine. No
transfer, by operation of law or otherwise, of any right, title or interest of
the Owners to and in their ownership interest in the Owner Trust Estate shall
operate to terminate this Agreement or the trusts hereunder or entitle any
transferee to an accounting or to the transfer to it of legal title to any part
of the Owner Trust Estate.

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

         Section 11.04. Notices.

         (a) Unless otherwise expressly specified or permitted by the terms
hereof, all demands, notices and communications under this Agreement shall be in
writing, personally delivered, mailed by certified mail, return receipt
requested, or sent via facsimile transmission (followed by hard copy by
overnight delivery) and shall be deemed to have been duly given upon receipt (i)
in the case of the Owner Trustee, The Bank of New York, 101 Barclay Street, 8th
Floor

                                       30

<PAGE>

West, New York, New York 10286, Attention: Asset Backed Securities Unit--Honda
2003-1, (ii) in the case of the Delaware Trustee, The Bank of New York
(Delaware), White Clay Center Route 273, Newark, Delaware 19711, Attention:
Asset Backed Securities Unit--Honda 2003-1, (iii) in the case of the Depositor,
to American Honda Receivables Corp., 700 Van Ness Avenue, Building 300,
Torrance, California 90501, Attention: President or (iv) as to either party, at
such other address as shall be designated by such party in a written notice to
the other party.

         (b) Any notice required or permitted to be given to a Certificateholder
shall be given by first-class mail, postage prepaid, at the address of such
Holder as shown in the Certificate Register. Any notice so mailed within the
time prescribed in this Agreement shall be conclusively presumed to have been
duly given, whether or not the Certificateholder receives such notice.

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

         Section 11.06. Separate Counterparts. This Agreement may be executed by
the parties hereto in separate counterparts, each of which when so executed and
delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument.

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

         Section 11.08. No Petition. The Owner Trustee and the Delaware Trustee,
by entering into this Agreement, each Certificateholder, by accepting a Trust
Certificate, and the Indenture Trustee and each Noteholder, by accepting the
benefits of this Agreement, each hereby covenants and agrees that it will not at
any time institute against the Depositor or the Issuer, or join in any
institution against the Depositor or the Issuer of, any bankruptcy proceedings
under any United States federal or state bankruptcy or similar law in connection
with any obligations relating tot he Trust Certificates, the Notes, this
Agreement or any other Basic Document.

         Section 11.09. No Recourse. Each Certificateholder by accepting a Trust
Certificate acknowledges that such Certificateholder's Trust Certificates
represent beneficial interests in the Issuer only and do not represent interests
in or obligations of the Depositor, the Seller, the Servicer, the Administrator,
the Owner Trustee, the Delaware Trustee, the Indenture Trustee or any of their
respective Affiliates and no recourse may be had against such parties or their
assets, except as may be expressly set forth or contemplated in the Trust
Certificates, this Agreement or any other Basic Document.

                                       31

<PAGE>

         Section 11.10. Headings. The headings of the various Articles and
Sections herein are for convenience of reference only and shall not define or
limit any of the terms or provisions hereof.

         Section 11.11. Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

         Section 11.12. Trust Certificates Nonassessable and Fully Paid.
Certificateholders shall not be personally liable for obligations of the Issuer.
The interests represented by the Trust Certificates shall be nonassessable for
any losses or expenses of the Issuer or for any reason whatsoever, and, upon the
authentication thereof by the Owner Trustee pursuant to Section 3.03, 3.04 or
3.05, the Trust Certificates are and shall be deemed fully paid.

         Section 11.13. Depositor Payment Obligation. The Depositor shall be
responsible for payment of the Administrator's compensation under the
Administration Agreement and shall reimburse the Administrator for all expenses
and liabilities of the Administrator incurred thereunder. In addition, the
Depositor shall be responsible for the payment of all fees and expenses of the
Issuer and the Trustees paid by any of them in connection with any of their
obligations under the Basic Documents to obtain or maintain any required license
under the Pennsylvania Motor Vehicle Sales Finance Act and the Maryland Act (MD
Fin. Inst. Code Ann., Title 11, Subtitle 4).

                                       32

<PAGE>

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

                     AMERICAN HONDA RECEIVABLES CORP.,
                          as Depositor

                     By:               /s/ Y. Takahashi
                               --------------------------------------
                               Name:  Y. Takahashi
                               Title: President

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

                     By:            /s/ John Bobko
                              ---------------------------------------
                              Name:  John Bobko
                              Title: Assistant Vice President

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

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

                                       33

<PAGE>

                                                                       EXHIBIT A

                            FORM OF TRUST CERTIFICATE

         THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS, AND MAY
NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION OR AN EXEMPTION THEREFROM. IN ADDITION, THE TRANSFER OF THIS
CERTIFICATE IS SUBJECT TO CERTAIN RESTRICTIONS AND CONDITIONS SET FORTH IN
SECTION 3.04 OF THE TRUST AGREEMENT UNDER WHICH THIS CERTIFICATE ISSUED (A COPY
OF WHICH TRUST AGREEMENT IS AVAILABLE FROM THE OWNER TRUSTEE UPON REQUEST),
INCLUDING RECEIPT BY THE OWNER TRUSTEE OF AN INVESTMENT LETTER IN WHICH THE
TRANSFEREE MAKES CERTAIN REPRESENTATIONS.

               NUMBER: R-1 Initial Certificate Balance: $[        ]

                    HONDA AUTO RECEIVABLES 2003-1 OWNER TRUST

                       [    ]% ASSET BACKED CERTIFICATE

evidencing a fractional undivided interest in the Issuer, as defined below, the
property of which includes a pool of retail installment sale or conditional sale
contracts secured by new and used Honda and Acura motor vehicles.

         (This Trust Certificate does not represent an interest in or obligation
of American Honda Receivables Corp., American Honda Finance Corporation or any
of their respective affiliates.)

         THIS CERTIFIES THAT ____________________________ is the registered
owner of a 100 PERCENT nonassessable, fully-paid, undivided interest in the
Honda Auto Receivables 2003-1 Owner Trust (the "Issuer"), formed by American
Honda Receivables Corp., a California corporation (the "Depositor").

         The Issuer was created pursuant to a Trust Agreement dated as of
January 21, 2003, as amended and restated by an Amended and Restated Trust
Agreement dated February 25, 2003 (as amended or supplemented from time to time,
the "Trust Agreement"), among the Depositor, The Bank of New York, as owner
trustee (the "Owner Trustee"), and The Bank of New York (Delaware), as Delaware
trustee (the "Delaware Trustee"), a summary of certain of the pertinent
provisions of which is set forth below. Capitalized terms used herein that are
not otherwise defined shall have the meanings ascribed thereto in the Trust
Agreement.

         This Trust Certificate is one of the duly authorized certificates
designated as "Asset Backed Certificates" (the "Trust Certificates"). Issued
under an Indenture dated as of February 1, 2003 (the "Indenture"), between the
Issuer and JPMorgan Chase Bank, as indenture trustee, are four classes of Notes
designated as "Class A-1 1.30% Asset Backed Notes," "Class A-2

                                      A-1

<PAGE>

1.46% Asset Backed Notes", "Class A-3 1.92% Asset Backed Notes" and "Class A-4
2.48% Asset Backed Notes" (collectively, the "Notes"). This Trust Certificate is
issued under and is subject to terms, provisions and conditions of the Trust
Agreement, to which Trust Agreement the Holder of this Trust Certificate, by
virtue of its acceptance thereof, assents and by which such Holder is bound. The
property of the Issuer includes, among other things, a pool of retail
installment sale or conditional sale contracts for new and used Honda and Acura
motor vehicles (collectively, the "Receivables"), all monies received on or in
respect of the Receivables on or after February 1, 2003, security interests in
the vehicles financed thereby, certain bank accounts and the proceeds thereof,
proceeds from claims on certain insurance policies and certain other rights
under the Trust Agreement and the Sale and Servicing Agreement and all proceeds
of the foregoing.

         It is the intent of the Depositor, the Servicer and the
Certificateholder that, solely for purposes of federal income, state and local
income tax and any other income taxes, the Issuer will be treated as a
disregarded entity not separate from the sole Certificateholder. The purchaser
hereof, by acceptance of the Trust Certificates, agrees to treat, and to take no
action inconsistent with the above treatment for so long as it is the sole
Owner.

         Solely in the event the Trust Certificates are held by more than a
single Owner, it is the intent of the Depositor, the Servicer and the
Certificateholders that, solely for purposes of federal income, state and local
income and single business tax and any other income taxes, the Issuer will be
treated as a partnership and the Certificateholders will be treated as partners
in the partnership. The purchaser hereof and the other Certificateholders, by
acceptance of a Trust Certificate, agree to treat, and to take no action
inconsistent with the treatment of, the Trust Certificates for such tax purposes
as partnership interests in the Issuer.

         Each Certificateholder, by its acceptance of a Trust Certificate,
covenants and agrees that such Certificateholder will not at any time institute
against the Depositor, or join in any institution against the Depositor of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings ,
or other proceedings under any United States federal or state bankruptcy or
similar law in connection with any obligations relating to the Trust
Certificates, the Notes, the Trust Agreement or any other Basic Document.

         Distributions on this Trust Certificate will be made as provided in the
Trust Agreement by the Owner Trustee by wire transfer or check mailed to the
Certificateholder of record in the Certificate Register without the presentation
or surrender of this Trust Certificate or the making of any notation hereon.
Except as otherwise provided in the Trust Agreement and notwithstanding the
above, the final distribution on this Trust Certificate will be made after due
notice by the Owner Trustee of the pendency of such distribution and only upon
presentation and surrender of this Trust Certificate at the office or agency
maintained for the purpose by the Owner Trustee.

         Reference is hereby made to the further provisions of this Trust
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

                                      A-2

<PAGE>

         Unless the certificate of authentication hereon shall have been
executed by an authorized officer of the Owner Trustee, by manual signature,
this Trust Certificate shall not entitle the Holder hereof to any benefit under
the Trust Agreement or the Sale and Servicing Agreement or be valid for any
purpose.

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

         IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Issuer and not
in its individual capacity, has caused this Trust Certificate to be duly
executed.

                          HONDA AUTO RECEIVABLES 2003-1 OWNER TRUST

                          By:      THE BANK OF NEW YORK,
                                   not in its individual capacity but solely as
                                   Owner Trustee on behalf of the Trust

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

                  OWNER TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Trust Certificates referred to in the within-mentioned  Trust
Agreement.

<TABLE>
<CAPTION>
<S>                                                             <C>
THE BANK OF NEW YORK,                                    OR     THE BANK OF NEW YORK,
not in its individual capacity but solely as Owner              not in its individual capacity but solely as Owner
Trustee on behalf of the Trust                                  Trustee on behalf of the Trust

By:
          -----------------------------------------
          as Authenticating Agent

By:                                                            By:
          -----------------------------------------                    -----------------------------------------------
          Authorized Signatory                                         Authorized Signatory
</TABLE>

                                      A-3

<PAGE>

                         [REVERSE OF TRUST CERTIFICATE]

         The Trust Certificates do not represent an obligations of, or an
interest in, the Depositor, the Servicer, the Owner Trustee or any of their
respective affiliates and no recourse may be had against such parties or their
assets, except as expressly set forth or contemplated herein or in the Trust
Agreement or the other Basic Documents. In addition, this Trust Certificate is
not guaranteed by any governmental agency or instrumentality and is limited in
right of payment to certain collections and recoveries with respect to the
Receivables (and certain other amounts), all as more specifically set forth
herein and in the Sale and Servicing Agreement. A copy of each of the Sale and
Servicing Agreement and the Trust Agreement may be examined by any
Certificateholder upon written request during normal business hours at the
principal office of the Depositor and at such other places, if any, designated
by the Depositor.

         The Trust Agreement permits, with certain exceptions therein provided,
the amendment thereof and the modification of the rights and obligations of the
Depositor and the rights of the Certificateholders under the Trust Agreement at
any time by the parties thereto with the consent of the Holders of the Trust
Certificates and the Notes, each voting as a class, evidencing not less than a
majority of the Percentage Interests evidenced by the outstanding Trust
Certificates, or a majority of the outstanding principal balance of the Notes of
each such class. Any such consent by the Holder of this Trust Certificate shall
be conclusive and binding on such Holder and on all future Holders of this Trust
Certificate and of any Trust Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof, whether or not notation of such consent is
made upon this Trust Certificate. The Trust Agreement also permits the amendment
thereof, in certain limited circumstances, without the consent of the Holders of
any of the Trust Certificates.

         As provided in the Trust Agreement and subject to certain limitations
therein set forth, the transfer of this Trust Certificate is registrable in the
Certificate Register upon surrender of this Trust Certificate for registration
of transfer at the offices or agencies of the Certificate Registrar maintained
by the Owner Trustee, accompanied by a written instrument of transfer in form
satisfactory to the Owner Trustee and the Certificate Registrar duly executed by
the Holder hereof or such Holder's attorney duly authorized in writing, and
thereupon one or more new Trust Certificates evidencing the same original
certificate balance in the Issuer will be issued to the designated transferee.

         Except as provided in the Trust Agreement, the Trust Certificates are
issuable only as registered Trust Certificates. As provided in the Trust
Agreement and subject to certain limitations therein set forth, Trust
Certificates are exchangeable for new Trust Certificates evidencing the same
aggregate original certificate balance, as requested by the Holder surrendering
the same. No service charge will be made for any such registration of transfer
or exchange, but the Owner Trustee or the Certificate Registrar may require
payment of a sum sufficient to cover any tax or governmental charge payable in
connection therewith.

         The Owner Trustee, the Certificate Registrar and any agent of the Owner
Trustee or the Certificate Registrar may treat the Person in whose name this
Trust Certificate is registered as the owner hereof for all purposes, and none
of the Owner Trustee, the Certificate Registrar or any such agent shall be
affected by any notice to the contrary.

                                      A-4

<PAGE>

         The obligations and responsibilities created by the Trust Agreement and
the Issuer created thereby shall terminate upon the payment to
Certificateholders of all amounts required to be paid to them pursuant to the
Trust Agreement and the Sale and Servicing Agreement and the disposition of all
property held as part of the Owner Trust Estate. The Servicer of the Receivables
may at its option purchase the Owner Trust Estate at a price specified in the
Sale and Servicing Agreement, and such purchase of the Receivables and other
property of the Issuer will effect early retirement of the Trust Certificates;
provided, however, such right of purchase is exercisable only as of the last day
of any Collection Period as of which the Pool Balance is less than or equal to
10% of the Original Pool Balance.

         The Trust Certificates may not be acquired by a Benefit Plan. By
accepting and holding this Trust Certificate, the Holder hereof shall be deemed
to have represented and warranted that it is not a Benefit Plan.

                                      A-5

<PAGE>

                                   ASSIGNMENT

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

PLEASE INSERT SOCIAL SECURITY OR
OTHER IDENTIFYING NUMBER OF ASSIGNEE

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

the within Trust Certificate,  and all rights thereunder, any hereby irrevocably

constitutes and appoints  __________________,  attorney,  to transfer said Trust

Certificate  on the  books of the  Certificate  Registrar,  with  full  power of

substitution in the premises.

                                     -----------------------------------------o
                                                Signature Guaranteed:

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

--------

NOTICE: The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Trust Certificate in
every particular, without alteration, enlargement or any change whatsoever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Certificate Registrar, which requirements include membership
or participation in STAMP or such other "signature guarantee program" as may be
determined by the Certificate Registrar in addition to, or in substitution for,
STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

                                      A-6

<PAGE>

                                                                       EXHIBIT B

                         FORM OF TRANSFEROR CERTIFICATE

                                         ---------------, ----

[Seller]

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

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

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

THE BANK OF NEW YORK
101 Barclay Street, 8th Floor West
New York, New York 10286

         Re:      Honda Auto Receivables 2003-1 Owner Trust
                  Asset Backed Certificates
                  -----------------------------------------

Dear Sirs:

         In connection with our disposition of the above-referenced Asset Backed
Certificates (the "Certificates") we certify that (i) we understand that the
Certificates have not been registered under the Securities Act of 1933, as
amended (the "Act"), and are being transferred by us in a transaction that is
exempt from the registration requirements of the Act and (ii) we have not
offered or sold any Certificates to, or solicited offers to buy any Certificates
from, any person, or otherwise approached or negotiated with any person with
respect thereto, in a manner that would be deemed, or taken any other action
which would result in, a violation of Section 5 of the Act.

                                 Very truly yours,

                                 [NAME OF TRANSFEROR]

                                 By
                                       --------------------------------
                                               Authorized Officer

                                      B-1
<PAGE>

                                                                       EXHIBIT C

                            FORM OF INVESTMENT LETTER

                                     ---------------, ---

Seller

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

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

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

THE BANK OF NEW YORK
101 Barclay Street, 8th Floor West
New York, New York 10286

         Re:      Honda Auto Receivables 2003-1 Owner Trust
                  Asset Backed Certificates
                  -----------------------------------------

Dear Sirs:

         In connection with our acquisition of the above-referenced Asset Backed
Certificates (the "Certificates") we certify that (a) we understand that the
Certificates are not being registered under the Securities Act of 1933, as
amended (the "Act"), or any state securities laws and are being transferred to
us in a transaction that is exempt from the registration requirements of the Act
and any such laws, (b) we are an "accredited investor," as defined in Regulation
D under the Act, and have such knowledge and experience in financial and
business matters that we are capable of evaluating the merits and risks of
investments in the Certificates, (c) we have had the opportunity to ask
questions of and receive answers from the Seller concerning the purchase of the
Certificates and all matters relating thereto or any additional information
deemed necessary to our decision to purchase the Certificates, (d) we are
acquiring the Certificates for investment for our own account and not with a
view to any distribution of such Certificates (but without prejudice to our
right at all times to sell or otherwise dispose of the Certificates in
accordance with clause (f) below), (e) we have not offered or sold any
Certificates to, or solicited offers to buy any Certificates from, any person,
or otherwise approached or negotiated with any person with respect thereto, or
taken any other action that would result in a violation of Section 5 of the Act
or any state securities laws, (f) we are not a Benefit Plan and (g) we will not
sell, or otherwise dispose of any Certificates unless (i) such sale, transfer or
other disposition is made pursuant to an effective registration statement under
the Act and in compliance with any state securities laws or is exempt from such
registration requirements and, if requested, we will at our expense provide an
Opinion of Counsel satisfactory to the addresses of this certificate that such
sale, transfer or other disposition may be made pursuant to an exemption from
the Act, (ii) the purchaser or transferee of such Certificate has executed and
delivered to you a certificate to substantially the same effect as this
certificate and (iii) the purchaser or transferee has otherwise complied with
any conditions for transfer set forth in the Amended and Restated Trust

                                      C-1
<PAGE>

Agreement dated as of February 25, 2003, among American Honda Receivables Corp.,
The Bank of New York, as Owner Trustee, and The Bank of New York (Delaware),  as
Delaware Trustee.

                                Very truly yours,

                                [NAME OF TRANSFEROR]

                                By
                                        --------------------------------
                                                Authorized Officer

                                      C-2
<PAGE>

                                                                       EXHIBIT D

                            FORM OF RULE 144A LETTER

                                     _______________, 20__

Seller

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

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

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

THE BANK OF NEW YORK
101 Barclay Street, 8th Floor
New York, New York 10286

         Re:      Honda Auto Receivables 2003-1 Owner Trust
                  Asset Backed Certificates
                  -----------------------------------------

Dear Sirs:

         In connection with our acquisition of the above-referenced Asset Backed
Certificates (the "Certificates") we certify that (a) we understand that the
Certificates are not being registered under the Securities Act of 1933, as
amended (the "Act"), or any state securities laws and are being transferred to
us in a transaction that is exempt from the registration requirements of the Act
and any such laws, (b) we have such knowledge and experience in financial and
business matters that we are capable of evaluating the merits and risks of
investments in the Certificates, (c) we have had the opportunity to ask
questions of and receive answers from the Seller concerning the purchase of the
Certificates and all matters relating thereto or any additional information
deemed necessary to our decision to purchase the Certificates, (d) we have not,
nor has anyone acting on our behalf, offered, transferred, pledged, sold or
otherwise disposed of the Certificates or an interest in the Certificates, or
solicited any offer to buy, transfer, pledge or otherwise dispose of the
Certificates or any interest in the Certificates from any person in any manner
or made any general solicitation by means of general advertising or in any other
manner, taken any other action that would constitute a distribution of the
Certificates under the Act or that would render the disposition of the
Certificates a violation of Section 5 of the Act or any state securities laws or
require registration pursuant thereto, and we will not act, or authorize any
person to act, in such manner with respect to the Certificates, (e) we are not a
Benefit Plan and (f) we are a "qualified institutional buyer" as that term is
defined in Rule 144A under the Act. We are aware that the sale to us is being
made in reliance on Rule 144A. We are acquiring the certificates for our own
account or for resale pursuant to Rule 144A and understand that such
certificates may be resold, pledged or transferred only (i) to a person
reasonably believed to be a qualified institutional buyer that purchases for its
own account or for the account of a qualified institutional buyer to whom notice
is given that the resale, pledge or transfer is being made in reliance on Rule
144A or (ii) pursuant to another exemption from registration under the Act.

<PAGE>

                                   Very truly yours,

                                   [NAME OF TRANSFEREE]

                                   By

                                     --------------------------------------
                                                  Authorized Officer<PAGE>

                                                                  EXECUTION COPY

                    HONDA AUTO RECEIVABLES 2003-1 OWNER TRUST,
                                   as Issuer,

                        AMERICAN HONDA RECEIVABLES CORP.,
                                   as Seller,

                                       And
                       AMERICAN HONDA FINANCE CORPORATION,
                                   as Servicer

                          SALE AND SERVICING AGREEMENT

                          Dated as of February 1, 2003

<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                                       Page
                                                                                                       ----
                                   ARTICLE ONE
                                   DEFINITIONS
<S>                                                                                                      <C>
   Section 1.01.      General Definitions.................................................................1
   Section 1.02.      Other Definitional Provisions......................................................19
   Section 1.03.      Interpretive Provisions............................................................19

                                   ARTICLE TWO
             CONVEYANCE OF RECEIVABLES; CUSTODY OF RECEIVABLES FILES

   Section 2.01.      Conveyance of Receivables..........................................................20
   Section 2.02.      Custody of Receivable Files........................................................21
   Section 2.03.      Representations and Warranties of Seller as to the Receivables.....................22
   Section 2.04.      Repurchase of Receivables Upon Breach..............................................25
   Section 2.05.      Duties of Servicer as Custodian....................................................26
   Section 2.06.      Instructions; Authority to Act.....................................................27
   Section 2.07.      Indemnification by Custodian.......................................................27
   Section 2.08.      Effective Period and Termination...................................................27

                                  ARTICLE THREE
                   ADMINISTRATION AND SERVICING OF RECEIVABLES

   Section 3.01.      Duties of Servicer.................................................................28
   Section 3.02.      Collection of Receivable Payments..................................................29
   Section 3.03.      Rebates on Full Prepayments........................................................29
   Section 3.04.      Realization Upon Receivables.......................................................29
   Section 3.05.      Maintenance of Physical Damage Insurance Policies..................................30
   Section 3.06.      Maintenance of Security Interests in Financed Vehicles.............................30
   Section 3.07.      Covenants of Servicer..............................................................30
   Section 3.08.      Purchase of Receivables Upon Breach................................................31
   Section 3.09.      Total Servicing Fee; Payment of Certain Expenses by Servicer.......................31
   Section 3.10.      Servicer's Certificate.............................................................31
   Section 3.11.      Annual Statement as to Compliance; Notice of Default...............................32
   Section 3.12.      Annual Accountants' Report.........................................................32
   Section 3.13.      Access to Certain Documentation and Information Regarding Receivables..............32
   Section 3.14.      Amendments to Schedule of Receivables..............................................33
   Section 3.15.      Reports to Securityholders and Rating Agencies.....................................33
   Section 3.16.      Appointment of Subservicer.........................................................33

                                  ARTICLE FOUR
                            DISTRIBUTIONS; RESERVE FUND; STATEMENTS TO SECURITYHOLDERS

   Section 4.01.      Establishment of Accounts..........................................................34
   Section 4.02.      Collections........................................................................35
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   Section 4.03.      Application of Collections.................................................................36
   Section 4.04.      Advances...................................................................................37
   Section 4.05.      Additional Deposits........................................................................38
   Section 4.06.      Distributions..............................................................................38
   Section 4.07.      Reserve Fund...............................................................................40
   Section 4.08.      Yield Supplement Account...................................................................40
   Section 4.09.      Net Deposits...............................................................................40
   Section 4.10.      Statements to Securityholders..............................................................40

                                  ARTICLE FIVE
                                   THE SELLER

   Section 5.01.      Representations of Seller..................................................................42
   Section 5.02.      Liability of Seller; Indemnities...........................................................43
   Section 5.03.      Merger, Consolidation or Assumption of the Obligations of Seller; Certain Limitations......44
   Section 5.04.      Limitation on Liability of Seller and Others...............................................46
   Section 5.05.      Seller May Own Notes.......................................................................46

                                   ARTICLE SIX
                                  THE SERVICER

   Section 6.01.      Representations of Servicer................................................................46
   Section 6.02.      Indemnities of Servicer....................................................................48
   Section 6.03.      Merger, Consolidation or Assumption of the Obligations of Servicer.........................48
   Section 6.04.      Limitation on Liability of Servicer and Others.............................................48
   Section 6.05.      AHFC Not to Resign as Servicer.............................................................49

                                  ARTICLE SEVEN
                                SERVICER DEFAULTS

   Section 7.01.      Servicer Defaults..........................................................................50
   Section 7.02.      Appointment of Successor Servicer..........................................................51
   Section 7.03.      Notification of Servicer Termination.......................................................52
   Section 7.04.      Waiver of Past Defaults....................................................................52
   Section 7.05.      Repayment of Advances......................................................................52

                                  ARTICLE EIGHT
                                   TERMINATION

   Section 8.01.      Optional Purchase of All Receivables.......................................................52

                                  ARTICLE NINE
                                  MISCELLANEOUS

   Section 9.01.      Amendment..................................................................................53
   Section 9.02.      Protection of Title to Trust...............................................................54
   Section 9.03.      Notices....................................................................................56
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   Section 9.04.      Assignment.................................................................................56
   Section 9.05.      Limitations on Rights of Others............................................................56
   Section 9.06.      Severability...............................................................................57
   Section 9.07.      Separate Counterparts......................................................................57
   Section 9.08.      Headings...................................................................................57
   Section 9.09.      Governing Law..............................................................................57
   Section 9.10.      Nonpetition Covenants......................................................................57
   Section 9.11.      Limitation of Liability of Owner Trustee and Indenture Trustee.............................57
</TABLE>

                                               SCHEDULES

Schedule A - Schedule of Receivables             A-1
Schedule B - Location of Receivable Files        B-1

                                               EXHIBITS

Exhibit A - Form of Distribution Statement
                   of Securityholders            A-1
Exhibit B - Form of Servicer's Certificate       B-1

                                      iii
<PAGE>

         This Sale and Servicing Agreement, dated as of February 1, 2003, is
among American Honda Receivables Corp., a California corporation ("AHRC" or, in
its capacity as Seller, the "Seller"), American Honda Finance Corporation, a
California corporation ("AHFC" or, in its capacity as Servicer, the "Servicer"),
and Honda Auto Receivables 2003-1 Owner Trust, a Delaware statutory trust, as
issuer (the "Issuer").

         WHEREAS the Issuer desires to purchase from the Seller a portfolio of
receivables arising in connection with retail installment sale or conditional
sale contracts (the "Receivables") generated by AHFC in the ordinary course of
its business, which Receivables have been sold by AHFC to AHRC;

         WHEREAS, AHRC is willing to sell the Receivables to the Issuer pursuant
to the terms hereof; and

         WHEREAS, AHFC is willing to service the Receivables pursuant to the
terms hereof;

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

                                  ARTICLE ONE

                                   DEFINITIONS

         Section 1.01. General Definitions. Whenever used in this Agreement, the
following words and phrases, unless the context otherwise requires, shall have
the following meanings:

         "Absolute Prepayment Model" means a model calculating prepayment of
receivables with respect to which the receivables prepay at a specified constant
monthly prepayment rate.

         "Accounts" means the Collection Account, the Note Distribution Account,
the Payahead Account, the Yield Supplement Account and the Reserve Fund.

         "Account Property" means, with respect to each Account, such Account,
together with all cash, securities, financial assets and investments and other
property from time to time deposited or credited to such Account and all
proceeds thereof, including, with respect to the (i) Reserve Fund, the Reserve
Fund Initial Deposit and (ii) Yield Supplement Account, the Yield Supplement
Account Deposit.

         "Actual Payment" means, with respect to a Receivable and a Collection
Period, all payments received by the Servicer from or for the account of the
related Obligor on such Receivable during such Collection Period, net of any
Supplemental Servicing Fees attributable to such Receivable. Actual Payments do
not include Applied Payments Ahead.

         "Actuarial Receivable" means any Receivable which provides for the
allocation of payments according to the "actuarial" method.

         "Administration Agreement" means the Administration Agreement, dated as
of February 1, 2003, among the Administrator, the Issuer, the Depositor and the
Indenture Trustee.

<PAGE>

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

         "Administrative Purchase Payment" means, with respect to a Payment Date
and to an Administrative Receivable purchased by the Seller or the Servicer as
of the end of the related Collection Period, which Receivable is (i) a
Precomputed Receivable, (a) the sum of (1) all Scheduled Payments on such
Receivable due after the last day of such Collection Period, (2) an amount equal
to any reimbursement of Outstanding Advances made pursuant to the first sentence
of Section 4.04(c) with respect to such Receivable, (3) all past due Scheduled
Payments for which an Advance has not been made, minus (b) the sum of (1) all
Payments Ahead in respect of such Administrative Receivable held by the Servicer
or on deposit in the Payahead Account, (2) any Rebate and (3) any proceeds of
the liquidation of such Receivable previously received (to the extent applied to
reduce the Principal Balance of such Receivable) or (ii) a Simple Interest
Receivable, the sum of (a) the unpaid principal balance owed by the related
Obligor in respect of such Receivable and (b) interest on such unpaid principal
balance at a rate equal to the APR of the related Receivable from the date of
last payment by such Obligor to the last day of such Collection Period.

         "Administrative Receivable" means a Receivable which the Servicer is
required to purchase pursuant to Section 3.08 or which the Servicer has elected
to purchase pursuant to Section 8.01.

         "Advance" means a Precomputed Advance or a Simple Interest Advance.

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

         "Aggregate Net Losses" means, with respect to a Collection Period, an
amount equal to the aggregate Principal Balance of all Receivables that became
Defaulted Receivables during such Collection Period minus all Net Liquidation
Proceeds collected during such Collection Period with respect to all Defaulted
Receivables.

         "Agreement" means this Sale and Servicing Agreement, and all amendments
hereof and supplements hereto.

         "AHFC" means American Honda Finance Corporation, and its successors.

         "AHRC" means American Honda Receivables Corp., and its successors.

         "Amount Financed" in respect of a Receivable means the aggregate amount
advanced under such Receivable toward the purchase price of the related Financed
Vehicle and any related costs, including but not limited to accessories,
insurance premiums, service and warranty contracts and other items customarily
financed as part of motor vehicle retail installment sale contracts.

                                       2
<PAGE>

         "Annual Percentage Rate" or "APR" of a Receivable means the annual rate
of finance charges stated in such Receivable.

         "Applied Payment Ahead" means, with respect to a Precomputed Receivable
and a Collection Period as to which (i) the Actual Payment is less than the
Scheduled Payment and (ii) a Deferred Prepayment is on deposit in the Payahead
Account or otherwise retained by the Servicer pursuant to Section 4.02(c), an
amount equal to the lesser of (a) such Deferred Prepayment and (b) the amount by
which the Scheduled Payment exceeds the Actual Payment.

         "Available Amount" means, with respect to any Payment Date, the sum of
Available Interest and Available Principal.

         "Available Interest" means, with respect to any Payment Date, the total
of the following amounts allocable to interest received by the Servicer on or in
respect of the Receivables during the related Collection Period (computed, in
the case of Precomputed Receivables, by the actuarial method and, in the case of
Simple Interest Receivables, by the simple interest method): (i) the sum of the
interest component of all (a) collections on or in respect of all Receivables
other than Defaulted Receivables (including the interest portion of Applied
Payments Ahead, but excluding Payments Ahead to be applied in one or more future
Collections Periods), (b) Net Liquidation Proceeds, (c) Advances made by the
Servicer, (d) Warranty Purchase Payments, (e) Administrative Purchase Payments
and (f) the Yield Supplement Withdrawal Amount, if any, for the related Payment
Date, less (ii) the sum of all (a) amounts received on or in respect of a
particular Receivable (other than a Defaulted Receivable) to the extent of the
aggregate Outstanding Interest Advances in respect of such Receivable and (b)
Net Liquidation Proceeds with respect to a particular Receivable to the extent
of the aggregate Outstanding Interest Advances in respect of such Receivable.

         "Available Principal" means, with respect to any Payment Date, the
total of the following amounts allocable to principal received by the Servicer
on or in respect of the Receivables during the related Collection Period
(computed, in the case of Precomputed Receivables, by the actuarial method and,
in the case of Simple Interest Receivables, by the simple interest method): (i)
the sum of the principal component of all (a) collections on or in respect of
all Receivables other than Defaulted Receivables (including the principal
portion of Applied Payments Ahead but excluding Payments Ahead), (b) Net
Liquidation Proceeds, (c) Advances made by the Servicer, (d) Warranty Purchase
Payments and (e) Administrative Purchase Payments, less (ii) an amount equal to
all (a) amounts received on or in respect of a particular Receivable (other than
a Defaulted Receivable) to the extent of the aggregate Outstanding Principal
Advances in respect of such Receivable and (b) Net Liquidation Proceeds with
respect to a particular Receivable to the extent of the aggregate Outstanding
Principal Advances in respect of such Receivable.

         "Basic Documents" means this Agreement, the Administration Agreement,
the Indenture, the Note Depository Agreement, the Receivables Purchase
Agreement, the Trust Agreement and the Control Agreement and any other documents
or certificates delivered in connection therewith as the same may be amended,
supplemented or otherwise modified and in effect.

         "Basic Servicing Fee" means the fee payable pursuant to Section 3.09 to
the Servicer on each Payment Date for services rendered during the related
Collection Period, which shall be

                                       3
<PAGE>

equal to one-twelfth of the Servicing Fee Rate multiplied by the Pool Balance as
of the first day of the related Collection Period or, with respect to the first
Payment Date, the Original Pool Balance.

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

         "Certificate Balance" means, on any Payment Date, the Original
Certificate Balance reduced by all distributions of principal previously made in
respect of the Certificates.

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

         "Certificate Distribution Account" has the meaning specified in the
Trust Agreement.

         "Certificate Interest Carryover Shortfall" means, with respect to any
Payment Date, the excess, if any, of (x) the sum of (i) the Certificate Monthly
Interest Distributable Amount and (ii) any outstanding Certificate Interest
Carryover Shortfall for the preceding Payment Date, over (y) the amount in
respect of interest on the Certificates that is actually paid as interest on the
Certificates on such Payment Date, plus, to the extent permitted by applicable
law, interest on the Certificate Interest Carryover Shortfall at the Certificate
Rate for the Interest Accrual Period.

         "Certificate Interest Distributable Amount" means, with respect to any
Payment Date, the sum of the Certificate Monthly Interest Distributable Amount
for such Payment Date and the Certificate Interest Carryover Shortfall for such
Payment Date.

         "Certificate Monthly Interest Distributable Amount" means, with respect
to any Payment Date, interest accrued for the related Interest Accrual Period at
the Certificate Rate on the Certificate Balance on the immediately preceding
Payment Date after giving effect to all payments of principal to
Certificateholders on or prior to such Payment Date (or, in the case of the
first Payment Date, on the Original Certificate Balance).

         "Certificate Monthly Principal Distributable Amount" means, with
respect to any Payment Date, the Certificate Percentage of the Principal
Distributable Amount for such Payment Date.

         "Certificate Percentage" means (i) for each Payment Date until the
principal amount of the Class A-1 Notes has been paid in full, 0%; (ii) after
the principal amount of the Class A-1 Notes has been paid in full, for each
Payment Date to and including the Payment Date on which the principal amount of
the Class A-4 Notes has been paid in full, the percent equivalent of a fraction,
the numerator of which is the initial principal amount of the Certificates and
the denominator of which is the sum of the initial aggregate principal amount of
the Class A-2, Class A-3 and Class A-4 Notes and the initial principal amount of
the Certificates; and (iii) for each Payment Date after the Payment Date on
which the principal amount of the Class A-4 Notes has been paid in full, 100%;
notwithstanding the foregoing, for each Payment Date after the

                                       4
<PAGE>

acceleration of the Notes following an Event of Default, the Certificate
Percentage shall be 0% until the Notes have been paid in full.

         "Certificate Pool Factor" means, with respect to the Certificates on
any Payment Date, a seven-digit decimal figure equal to the outstanding
principal balance of the Certificates on such Payment Date (after giving effect
to any reductions thereof to be made on such Payment Date) divided by the
Original Certificate Balance.

         "Certificate Principal Carryover Shortfall" means, with respect to any
Payment Date, the excess, if any, of (x) the sum of (i) the Certificate Monthly
Principal Distributable Amount and (ii) any outstanding Certificate Principal
Carryover Shortfall for the preceding Payment Date, over (y) the amount in
respect of principal that is actually paid as principal on the Certificates on
such Payment Date.

         "Certificate Principal Distributable Amount" means, with respect to any
Payment Date, the sum of the Certificate Monthly Principal Distributable Amount
for each Payment Date and any outstanding Certificate Principal Carryover
Shortfall as of the close of the immediately preceding Payment Date; provided,
however, that the Certificate Principal Distributable Amount shall not exceed
the Certificate Balance. In addition, on the Payment Date as of which all of the
Receivables are to be purchased pursuant to Section 8.01, the principal required
to be deposited into the Certificate Distribution Account will include the
amount necessary to reduce the Certificate Balance to zero.

         "Certificate Rate" means 2.48% per annum (computed on the basis of a
360 day year consisting of twelve 30-day months). "Certificateholders" has the
meaning specified in the Trust Agreement.

         "Charge-off Rate" with respect to a Collection Period will equal the
Aggregate Net Losses with respect to the Receivables expressed, on an annualized
basis, as a percentage of the average of the (i) Pool Balance on the last day of
the immediately preceding Collection Period and (ii) Pool Balance on the last
day of such current Collection Period.

         "Class" means all Securities whose form is identical except for
variation in denomination, principal amount or owner (i.e., each of Class A-1,
Class A-2, Class A-3 and Class A-4).

         "Class A-1 Final Payment Date" means the March 2004 Payment Date.

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

         "Class A-2 Final Payment Date" means the September 2005 Payment Date.

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

         "Class A-3 Final Payment Date" means the November 2006 Payment Date.

                                       5
<PAGE>

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

         "Class A-4 Final Payment Date" means the July 2008 Payment Date.

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

         "Closing Date" means February 25, 2003.

         "Collection Account" means the account designated as such, and
established and maintained pursuant to Section 4.01.

         "Collection Period" means each calendar month during the term of this
Agreement (or, in the case of the first Collection Period, the period of time
since the Cutoff Date through the last day of the calendar month immediately
preceding the month in which the first Payment Date occurs).

         "Commission" means the Securities and Exchange Commission, and its
successors.

         "Control" shall have the meaning specified in Section 8-106 of the UCC.

         "Control Agreement" means the control agreement, dated as of February
1, 2003, among AHRC, the Issuer, the Servicer, the Indenture Trustee and
JPMorgan Chase Bank, as securities intermediary, as amended or supplemented from
time to time.

         "Corporate Trust Office" means the principal office of the Indenture
Trustee at which at any particular time its corporate trust business shall be
administered, which office at the date of the execution of this Agreement is
located at 4 New York Plaza, 6th Floor, New York, New York 10004, Attention:
Institutional Trust Services: Honda Auto Receivables 2003-1 Owner Trust, 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 (of which address such successor
Indenture Trustee will notify the Noteholders and the Seller).

         "Current Receivable" means each Receivable that is not a Defaulted
Receivable or a Liquidated Receivable.

         "Cutoff Date" means February 1, 2003.

         "Dealer" means the dealer of motor vehicles who sold a Financed Vehicle
and who originated and assigned the Receivable relating to such Financed Vehicle
to AHFC under an existing agreement between such dealer and AHFC.

         "Dealer Recourse" means, with respect to a Receivable, all recourse
rights against the Dealer which originated the Receivable, and any successor to
such Dealer.

                                       6
<PAGE>

         "Defaulted Receivable" means a Receivable (other than an Administrative
Receivable or a Warranty Receivable as to which a Warranty Purchase Payment or
an Administrative Purchase Payment has been made) as to which (i) all or any
part of a Scheduled Payment is 120 or more days past due and the Servicer has
not repossessed the related Financed Vehicle or (ii) the Servicer has, in
accordance with its customary servicing procedures, determined that eventual
payment in full is unlikely and either repossessed and liquidated the related
Financed Vehicle or repossessed and held the related Financed Vehicle in its
repossession inventory for 90 days, whichever occurs first.

         "Deferred Prepayment" means, with respect to a Receivable and a
Collection Period, the aggregate amount, if any, of Payments Ahead remitted to
the Servicer in respect of such Receivable during one or more prior Collection
Periods and currently held by the Servicer or in the Payahead Account.

         "Delaware Trustee" means the Person acting as Delaware Trustee under
the Trust Agreement, its successors in interest and permitted assigns, initially
The Bank of New York (Delaware).

         "Delinquency Percentage" means, with respect to a Collection Period,
the percentage equivalent of a fraction, the numerator of which is the number of
(i) Receivables 61 days or more delinquent (after taking into account permitted
extensions) as of the last day of such Collection Period, determined in
accordance with the Servicer's normal practices, plus (ii) Receivables the
related Financed Vehicles of which have been repossessed but have not been
liquidated (to the extent the related Receivable is not otherwise reflected in
clause (i) above or is not a Defaulted Receivable), and the denominator of which
is the aggregate number of Current Receivables on the last day of such
Collection Period.

         "Deposit Date" means, with respect to any Collection Period and Payment
Date, the Business Day immediately preceding such Payment Date.

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

         "Determination Date" means, with respect to any Payment Date, the
thirteenth calendar day of the month in which such Payment Date occurs or, if
such day is not a Business Day, the immediately succeeding Business Day.

         "Discount Receivable" means any Receivable that has an APR which is
less than the Required Rate.

         "Eligible Account" means either (A) a segregated deposit account over
which the applicable Trustee has sole signature authority, maintained with an
Eligible Institution meeting the requirements of clause (i) thereof or (B) a
segregated trust account maintained with an Eligible Institution meeting the
requirements of clause (ii) thereof, in each case bearing a designation clearly
indicating that the funds deposited therein are held for the benefit of the
Securityholders, the Noteholders or the Certificateholders, as the case may be.

         "Eligible Institution" means a depository institution or trust company,
(i) the commercial paper or other short-term unsecured debt obligations of which
have the Required Deposit Rating

                                       7
<PAGE>

or (ii) having corporate trust powers and organized under the laws of the United
States, any state thereof, the District of Columbia or the Commonwealth of
Puerto Rico which has a long-term deposit rating from (A) Moody's of at least
Baa3 or (B) Standard and Poor's of at least BBB- (or such lower rating as either
Rating Agency shall approve in writing).

         "Eligible Investments" means, at any time, any one or more of the
following obligations and securities:

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

              (ii) general obligations of or obligations guaranteed by FNMA, any
         state of the United States, the District of Columbia or the
         Commonwealth of Puerto Rico then rated the highest available credit
         rating of each Rating Agency for such obligations;

              (iii) securities bearing interest or sold at a discount issued by
         any corporation incorporated under the laws of the United States or any
         state thereof, the District of Columbia or the Commonwealth of Puerto
         Rico, so long as at the time of such investment or contractual
         commitment providing for such investment either the long-term unsecured
         debt of such corporation has the highest available credit rating from
         each Rating Agency for such obligations or the commercial paper or
         other short-term debt which is then rated has the highest available
         credit rating of each Rating Agency for such obligations;

              (iv) certificates of deposit issued by any depository institution
         or trust company (including the Trustee) incorporated under the laws of
         the United States or any state thereof, the District of Columbia or the
         Commonwealth of Puerto Rico and subject to supervision and examination
         by banking authorities of one or more of such jurisdictions, provided
         that the short-term unsecured debt obligations of such depository
         institution or trust company has the highest available credit rating of
         each Rating Agency for such obligations;

              (v) certificates of deposit issued by any bank, trust company,
         savings bank or other savings institution and fully insured by the
         FDIC;

              (vi) repurchase obligations held by the Trustee that are
         acceptable to the Trustee with respect to any security described in
         clauses (i) or (ii) hereof or any other security issued or guaranteed
         by any other agency or instrumentality of the United States, in either
         case entered into with a federal agency or a depository institution or
         trust company (acting as principal) described in clause (iv) above;

              (vii) any mutual fund, money market fund, common trust fund or
         other pooled investment vehicle having a rating, at the time of such
         investment, of no less than Aaa or its equivalent by Moody's, AAA or
         its equivalent by Standard & Poor's and AAA or its equivalent by Fitch,
         if rated by Fitch (including, but not limited to funds of which
         JPMorgan Chase Bank or an affiliate thereof is the manager or financial
         advisor);

                                       8
<PAGE>

              (viii) such other investments acceptable to each Rating Agency in
         writing as will not result in the qualification, downgrading or
         withdrawal of the rating then assigned to any Rated Securities by such
         Rating Agency;

provided that each of the foregoing investments shall mature no later than the
Deposit Date immediately following the date of purchase (other than in the case
of the investment of monies in instruments of which the entity at which the
related Account or the Certificate Distribution Account, as the case may be, is
located is the obligor, which may mature on the related Payment Date), and shall
be required to be held to such maturity.

         Notwithstanding anything to the contrary contained in this definition,
(a) no Eligible Investment may be purchased at a premium, and (b) no obligation
or security is an "Eligible Investment" unless (i) the Trustee has Control over
such obligation or security and (ii) at the time such obligation or security was
delivered to the Trustee or the Trustee became the related Entitlement Holder,
the Trustee did not have notice of any adverse claim with respect thereto within
the meaning of Section 8-105 of the UCC.

         For purposes of this definition, any reference to the highest available
credit rating of an obligation shall mean the highest available credit rating
for such obligation, or such lower credit rating (as approved in writing by each
Rating Agency) as will not result in the qualification, downgrading or
withdrawal of the rating then assigned to any Rated Securities by such Rating
Agency.

         "Entitlement Holder" shall have the meaning specified in Section 8-102
of the UCC.

         "Entitlement Order" shall have the meaning specified in Section 8-102
of the UCC.

         "Excess Payment" means, with respect to a Receivable and a Collection
Period, the amount, if any, by which the Actual Payment exceeds the sum of (i)
the Scheduled Payment and (ii) any Overdue Payment.

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

         "FDIC" means the Federal Deposit Insurance Corporation.

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

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

         "Final Payment Dates" means, collectively, the Class A-1 Final Payment
Date, the Class A-2 Final Payment Date, the Class A-3 Final Payment Date and the
Class A-4 Final Payment Date.

         "Final Scheduled Maturity Date" means July 18, 2008.

         "Financed Vehicle" means, with respect to any retail installment sale
or conditional sale contract, the related new or used Honda or Acura motor
vehicle, together with all accessions

                                       9
<PAGE>

thereto, securing the related Obligor's indebtedness under such retail
installment sale or conditional sale contract.

         "Financial Asset" shall have the meaning specified in Section
8-102(a)(9) of the UCC.

         "Fitch" means Fitch, Inc., or its successors.

         "Indenture" means the indenture, dated as of February 1, 2003 between
the Issuer and the Indenture Trustee.

         "Indenture Trustee" means the Person acting as Indenture Trustee under
the Indenture, its successors in interest and any successor trustee under the
Indenture.

         "Independent Director" means a director of the Seller who is not (i) a
director, officer or employee of any Affiliate of the Seller, (ii) a natural
person related to any director or officer of any Affiliate of the Seller, (iii)
a holder (directly or indirectly) of more than 10% of any voting securities of
any Affiliate of the Seller or (iv) a natural person related to a holder
(directly or indirectly) of more than 10% of any voting securities of any
Affiliate of the Seller.

         "Insolvency Event" means, with respect to a specified Person, (i) the
filing of a decree or order for relief by a court having jurisdiction in the
premises in respect of such Person or any substantial part of its property in an
involuntary case under any applicable federal or state bankruptcy, insolvency or
other similar law now or hereafter in effect, or appointing a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official for
such Person or for any substantial part of its property, or ordering the
winding-up or liquidation of such Person's affairs, and such decree or order
shall remain unstayed and in effect for a period of 90 consecutive days; or (ii)
the commencement by such Person 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 such Person to the entry of an order for relief in an
involuntary case under any such law, or the consent by such Person to the
appointment of or taking possession by a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official for such Person or for any
substantial part of its property, or the making by such Person of any general
assignment for the benefit of creditors, or the failure by such Person generally
to pay its debts as such debts become due, or the taking of action by such
Person in furtherance of any of the foregoing.

         "Insurance Policy" means, with respect to a Receivable, an insurance
policy covering physical damage, credit life, credit disability, theft,
mechanical breakdown or any similar event relating to the related Financed
Vehicle or Obligor.

         "Letter of Credit Bank" means any Person who has provided a Servicer
Letter of Credit pursuant to Section 4.02(b).

         "Lien" means any security interest, lien, charge, pledge, equity or
encumbrance of any kind other than tax liens, mechanics' liens and any liens
that attach to a Receivable or any property, as the context may require, by
operation of law.

         "Liquidated Receivable" means a Receivable that (i) has been the
subject of a Prepayment in full, (ii) has otherwise been paid in full or (iii)
the Servicer has determined that

                                       10
<PAGE>

the final amounts in respect of such payment have been paid with respect to a
Defaulted Receivable, regardless of whether all or any part of such payment has
been made by the Obligor under such Receivable, the Seller pursuant to this
Agreement, AHFC pursuant to the Receivables Purchase Agreement, the Servicer
pursuant hereto, an insurer pursuant to an Insurance Policy or otherwise.

         "Liquidation Expenses" means, with respect to a Defaulted Receivable,
the amount charged by the Servicer, in accordance with its customary servicing
procedures, to or for its account for repossessing, refurbishing and disposing
of the related Financed Vehicle and other out-of-pocket costs related to such
liquidation.

         "Liquidation Proceeds" means, with respect to a Defaulted Receivable,
all amounts realized with respect to such Receivable from whatever sources
(including, without limitation, proceeds of any Insurance Policy), net of
amounts that are required by law or such Receivable to be refunded to the
related Obligor.

         "Maximum Yield Supplement Amount" means with respect to any Collection
Period and the related Deposit Date, after giving effect to the Yield Supplement
Amount, the maximum amount required to be on deposit in the Yield Supplement
Account on the immediately succeeding Payment Date, which is equal to the
present value (using an interest rate of: 1.25%) of the sum of all Yield
Supplement Amounts for all future Payment Dates, assuming that future Scheduled
Payments on the Discount Receivables are made on the date on which they are
scheduled as being due.

         "Monthly Payment" means, with respect to any Receivable, the amount of
each fixed monthly payment payable to the obligee under such Receivable in
accordance with the terms thereof, net of any portion of such monthly payment
that represents late payment charges, extension fees or collections allocable to
payments to be made by Obligors for payment of insurance premiums, extended
service contracts or similar items.

         "Moody's" means Moody's Investors Service, Inc., or its successors.

         "Motor Vehicle Receivables" shall have the meaning specified in Section
5.03(b)(ii)(A).

         "Net Liquidation Proceeds" means, with respect to a Defaulted
Receivable, Liquidation Proceeds less Liquidation Expenses.

         "Nonrecoverable Advance" shall have the meaning specified in Section
4.04(c).

         "Note Amount" means, with respect to any Payment Date, the aggregate
outstanding principal amount of the Notes after giving effect to payments of
principal made on the Notes on such Payment Date.

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

                                       11
<PAGE>

         "Note Distribution Account" means the account designated as such, and
established and maintained pursuant to Section 4.01.

         "Note Interest Carryover Shortfall" means, with respect to any Payment
Date and a Class of Notes, the excess, if any, of (x) the sum of (i) the Note
Monthly Interest Distributable Amount for such Class for the preceding Payment
Date and (ii) any outstanding Note Interest Carryover Shortfall for such Class
on such preceding Payment Date, over (y) the amount of interest that is actually
paid on the Notes on such preceding Payment Date, plus, to the extent permitted
by law, interest on the Note Interest Carryover Shortfall at the related
Interest Rate for the related Interest Accrual Period.

         "Note Interest Distributable Amount" means, with respect to any Payment
Date and a Class of Notes, the sum of the Note Monthly Interest Distributable
Amount for such Payment Date and the Note Interest Carryover Shortfall for such
Class of Notes. For all purposes of this Agreement and the other Basic
Documents, interest with respect to the Class A-2, Class A-3 and Class A-4 Notes
shall be computed on the basis of a 360-day year consisting of twelve 30-day
months; and interest with respect to the Class A-1 Notes shall be computed on
the basis of the actual number of days in each applicable Interest Accrual
Period, divided by 360.

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

         "Note Monthly Principal Distributable Amount" means, with respect to
any Payment Date, the Note Percentage of the Principal Distributable Amount for
such Payment Date.

         "Note Percentage" means (i) for each Payment Date until the principal
amount of the Class A-1 Notes has been paid in full, 100%; (ii) for each Payment
Date on or after the principal amount of the Class A-1 Notes has been paid in
full to and including the Payment Date on which the principal amount of the
Class A-4 Notes has been paid in full, the percent equivalent of a fraction, the
numerator of which is the initial aggregate principal amount of the Class A-2,
Class A-3 and Class A-4 Notes and the denominator of which is the sum of the
initial aggregate principal amount of the Class A-2, Class A-3 and Class A-4
Notes and the initial principal amount of the Certificates; and (iii) for each
Payment Date after the Payment Date on which the principal amount of the Class
A-4 Notes has been paid in full, 0%; notwithstanding the foregoing, for each
Payment Date after the acceleration of the Notes following an Event of Default,
the Note Percentage shall be 100% until the Notes have been paid in full.

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

                                       12
<PAGE>

         "Note Principal Carryover Shortfall" means, with respect to any Payment
Date, the excess, if any, of the sum of the Note Monthly Principal Distributable
Amount plus any outstanding Note Principal Carryover Shortfall for the preceding
Payment Date, over the amount in respect of principal that is actually paid as
principal on the Notes on such Payment Date.

         "Note Principal Distributable Amount" means, with respect to any
Payment Date, the sum of (i) the Note Monthly Principal Distributable Amount,
(ii) any outstanding Note Principal Carryover Shortfall as of the close of the
immediately preceding Payment Date and, (iii) on the Final Payment Date for a
Class of Notes or the Payment Date as of which all of the Receivables are to be
purchased pursuant to Section 8.01, the amount necessary (after giving effect to
all amounts allocable to principal required to be deposited in the Note
Distribution Account on such Payment Date) to reduce the Outstanding Amount of
each related Class of Notes to zero; provided, however, that the Note Principal
Distributable Amount with respect to a Class of Notes shall not exceed the
Outstanding Amount of such Class of Notes.

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

         "Obligor" on a Receivable means the purchaser or co-purchasers of the
related Financed Vehicle purchased in part or in whole by the execution and
delivery of a retail installment contract or any other Person who owes or may be
liable for payments under such retail installment contract.

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

         "Officers' Certificate" means a certificate signed by the president,
any Vice President, the treasurer or the secretary of the Seller or the
Servicer, as the case may be, and delivered to the Trustee.

         "Opinion of Counsel" means a written opinion of counsel (who, in the
case of counsel to the Seller or the Servicer, may be an employee of or outside
counsel to the Seller or the Servicer), which counsel shall be acceptable to the
Trustee.

         "Original Certificate Balance" means $35,577,657.84.

         "Original Pool Balance" means $1,577,277,657.84.

         "Outstanding Advances" means, with respect to a Receivable and the last
day of a Collection Period, the sum of all Advances made as of or prior to such
date, minus (1) all payments or collections as of or prior to such date which
are specified in Section 4.04(b) and (c) as applied to reimburse all unpaid
Advances with respect to such Receivable and (2) all amounts for which the
Servicer has deemed to have released all claims for reimbursement of Outstanding
Advances pursuant to Section 3.08.

         "Outstanding Amount" means the aggregate principal amount of all Notes,
or if indicated by the context, all Notes of any class, outstanding at the date
of the determination.

                                       13
<PAGE>

         "Outstanding Interest Advances" means, as of the last day of a
Collection Period with respect to a Receivable, the portion of Outstanding
Advances allocable to interest.

         "Outstanding Principal Advances" means, as of the last day of a
Collection Period with respect to a Receivable, the portion of Outstanding
Advances allocable to principal.

         "Overdue Payment" shall have the meaning specified in Section 4.03(a).

         "Owner Trust Estate" shall have the meaning specified in the Trust
Agreement.

         "Owner Trustee" means the Person acting as Owner Trustee under the
Trust Agreement, its successors in interest and any successor owner trustee
under the Trust Agreement.

         "Payahead Account" means the account designated as such and established
and maintained pursuant to Section 4.01.

         "Payment Ahead" means, with respect to a Precomputed Receivable and a
Collection Period, any Excess Payment (not representing, when added to any
Deferred Prepayment with respect to such Precomputed Receivable, a prepayment in
full of such Precomputed Receivable) which the Servicer, in accordance with its
customary servicing practices, will apply towards the payment of Scheduled
Payments due in one or more future Collection Periods.

         "Payment Date" means, with respect to a Collection Period, the
eighteenth calendar day of the next succeeding calendar month or, if such day is
not a Business Day, the next succeeding Business Day, commencing March 2003.

         "Percentage Interests" shall have the meaning specified in the Trust
Agreement.

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

         "Pool Balance" means, as of any date, the aggregate Principal Balance
of the Receivables (exclusive of all Administrative Receivables for which the
Servicer has paid the Administrative Purchase Payment, Warranty Receivables for
which the Seller has paid the Warranty Purchase Payment and Defaulted
Receivables) as of the close of business on such date.

         "Precomputed Advance" shall have the meaning specified in Section
4.04(a).

         "Precomputed Receivable" means any Actuarial Receivable or Rule of 78s
Receivable.

         "Prepayment" means any Excess Payment with respect to a Receivable
other than a Payment Ahead.

         "Principal Balance" means, with respect to any Receivable as of any
date, the Amount Financed minus the sum of the following amounts: (i) in the
case of a Precomputed Receivable, that portion of all Scheduled Payments due on
or prior to such date allocable to principal, computed in accordance with the
actuarial method, (ii) in the case of a Simple Interest

                                       14
<PAGE>

Receivable, that portion of all Scheduled Payments actually received on or prior
to such date allocable to principal, computed in accordance with the simple
interest method, (iii) any Warranty Purchase Payment or Administrative Purchase
Payment with respect to such Receivable allocable to principal and (iv) any
Prepayments or other payments applied to reduce the unpaid principal balance of
such Receivable.

         "Principal Distributable Amount" means, with respect to any Payment
Date, the sum of the following amounts (i) in the case of (a) Precomputed
Receivables, the principal portion of all Scheduled Payments due during the
related Collection Period, computed in accordance with the actuarial method and
(b) Simple Interest Receivables, the principal portion of all Scheduled Payments
actually received during the related Collection Period, computed in accordance
with the simple interest method, (ii) the principal portion of all Prepayments,
received during such Collection Period (to the extent such amounts are not
included in clause (i) above), (iii) the Principal Balance of each Receivable
that became an Administrative Receivable or a Warranty Receivable during such
Collection Period (to the extent such amounts are not included in clauses (i) or
(ii) above) and (iv) the Principal Balance of each Receivable that became a
Defaulted Receivable during such Collection Period (to the extent such amounts
are not included in clauses (i), (ii) or (iii) above).

         "Rated Securities" means each Class of Securities that has been rated
by a Rating at the request of the Seller.

         "Rating Agency" means Fitch, Moody's and Standard & Poor's.

         "Rating Agency Condition" means, with respect to any action, that each
Rating Agency shall have been given ten days' (or such shorter period as shall
be acceptable to each Rating Agency) prior notice thereof and that each Rating
Agency shall have notified the Seller, the Servicer and the Trustees in writing
that such action will not result in a reduction or withdrawal of the then
current rating of the Rated Securities.

         "Rebate" means, with respect to a Precomputed Receivable and any date,
the rebate, calculated in accordance with the actuarial method, under such
Receivable that is or would be payable to the related Obligor for unearned
finance charges or any other charges rebatable to the Obligor if such Obligor
were to prepay such Receivable in full on such date.

         "Receivable" means any retail installment sale contract executed by an
Obligor in respect of a Financed Vehicle, and all proceeds thereof and payments
thereunder, which Receivables shall be identified in a Schedule of Receivables.

         "Receivable Files" means the documents specified in Section 2.02.

         "Receivables Purchase Agreement" means the receivables purchase
agreement, dated as of February 1, 2003, between AHFC and the Seller, as amended
or supplemented from time to time.

         "Released Administrative Amount" means, with respect to a Payment Date
and to an Administrative Receivable, the Deferred Prepayment, if any, for such
Administrative Receivable.

                                       15
<PAGE>

         "Released Warranty Amount" means, with respect to a Payment Date and to
a Warranty Receivable, the Deferred Prepayment, if any, for such Warranty
Receivable.

         "Required Rate" means the sum of (a) the percent equivalent of a
fraction, the numerator of which is the sum for each Class of Notes of the
product of (1) the Interest Rate for such Class of Notes, (2) the original
principal balance of such Class of Notes and (3) the expected weighted average
life for such Class of Notes at the prepayment speed of 1.5% under the Absolute
Prepayment Model and the denominator of which is the sum for each such Class of
Notes of the product of (1) the original principal balance of such Class of
Notes and (2) the expected weighted average life for such Class of Notes at the
prepayment speed of 1.5% under the Absolute Prepayment Model and (b) the
Servicing Fee Rate.

         "Required Deposit Rating" means the short-term credit rating of the
related entity is at least equal to P-1 by Moody's, A-1+ by Standard & Poor's
and F1 by Fitch.

         "Required Servicer Rating" means, with respect to the Servicer, that
the then short-term unsecured debt obligations of the Servicer are rated at
least equal to P-1 by Moody's, and A-1 by Standard & Poor's.

         "Reserve Fund" means the account designated as such, and established
and maintained pursuant to Section 4.01.

         "Reserve Fund Initial Deposit" means the initial deposit of cash in the
amount of $7,886,388.29 made by or on behalf of the Seller into the Reserve Fund
on the Closing Date.

         "Reserve Fund Property" means, the Reserve Fund Initial Deposit and all
proceeds thereof and all other amounts deposited in or credited to the Reserve
Fund from time to time under this Agreement, all Eligible Investments made with
amounts on deposit therein, all earnings and distributions thereon and proceeds
thereof.

         "Responsible Officer" means, in the case of the Indenture Trustee, any
officer within the Corporate Trust Office of the Indenture Trustee, including
any Managing Director, Vice President, assistant Vice President, assistant
secretary or any other officer of the Indenture Trustee customarily performing
functions similar to those performed by any of the above designated officers, in
each case having direct responsibility for the administration of the Indenture
and, with respect to the Owner Trustee, any officer in the Corporate Trust
Administration Department of the Owner Trustee with direct responsibility for
the administration of the Trust Agreement and the Basic Documents on behalf of
the Owner Trustee.

         "retail installment contracts" means retail installment sale and
conditional sale contracts.

         "Rule of 78s Receivable" means any Receivable which provides for the
allocation of payments according to the "sum of periodic balances" or "sum of
monthly payments" method.

         "Schedule of Receivables" means the schedule of Receivables attached as
Schedule A to this Agreement, as it may be amended from time to time.

                                       16
<PAGE>

         "Scheduled Payment" means, with respect to any Payment Date and to a
Receivable, the payment set forth in such Receivable as due from the Obligor in
the related Collection Period; provided, however, that in the case of the first
Collection Period, the Scheduled Payment shall include all such payments due
from the Obligor on or after the Cutoff Date.

         "Securities" means the Notes and the Trust Certificates.

         "Security Entitlement" shall have the meaning specified in Section
8-102(a)(17) of the UCC.

         "Securityholders" means the Noteholders and the Certificateholders.

         "Seller" means AHRC, in its capacity as Seller of the Receivables under
this Agreement, and each successor thereto (in the same capacity) pursuant to
Section 5.03.

         "Servicer" means AHFC, in its capacity as servicer of the Receivables
pursuant to this Agreement, and each successor thereto (in the same capacity)
pursuant to Section 6.03.

         "Servicer Default" shall have the meaning specified in Section 7.01.

         "Servicer Letter of Credit" means, if the Servicer desires to remit
collections on or in respect of the Receivables to the Collection Account on a
monthly basis upon satisfaction of the conditions described in Section
4.02(b)(ii), (i) an irrevocable letter of credit, issued by a Letter of Credit
Bank and naming the Indenture Trustee a beneficiary or (ii) a surety bond,
insurance policy or deposit of cash or securities, which is satisfactory to each
Rating Agency.

         "Servicer's Certificate" means an Officers' Certificate of the Servicer
delivered pursuant to Section 3.10, substantially in the form of Exhibit B.

         "Servicing Fee Rate" means 1.00% per annum.

         "Simple Interest Advance" shall have the meaning specified in Section
4.04(a).

         "Simple Interest Receivable" means any Receivable which provides for
the allocation of payments according to the "simple interest" method.

         "Specified Reserve Fund Balance" means, on the Closing Date
$7,886,388.29, and with respect to any Payment Date the greater of: (i) 0.50% of
the Pool Balance as of the Cutoff Date and (ii) 0.75 % of the aggregate
principal amount of the Receivables as of the immediately preceding Payment
Date; except that, if on any Payment Date (i) the average of the Charge-off
Rates for the three preceding Collection Periods exceeds 2.25% or (ii) the
average of the Delinquency Percentages for the three preceding Collection
Periods exceeds 2.25%, then the Specified Reserve Fund Balance will be an amount
equal to a specified percentage of the Pool Balance as of the last day of the
immediately preceding Collection Period. Such percentage shall be determined by
deducting from 8.00% the following fraction, expressed as a percentage: (a) one
minus (b) a fraction, the numerator of which is the outstanding principal amount
of the Notes with respect to such Payment Date and the denominator of which is
such Pool Balance.

                                       17
<PAGE>

Notwithstanding the foregoing, in no event will the Specified Reserve Fund
Balance be more than the outstanding principal amount of the Notes.

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

         "Successor Servicer" means any entity appointed as a successor to the
Servicer pursuant to Section 7.02.

         "Supplemental Servicing Fee" means any interest earned on investment of
the monies on deposit in the Accounts (other than the Yield Supplement Account
and the Reserve Fund) during a Collection Period, net of any investment expenses
and losses from such investments, plus all late fees, prepayment charges and
other administrative fees and expenses or similar charges allowed by applicable
law with respect to the Receivables, including, in the case of a Rule of 78s
Receivable and that is prepaid in full, the difference between the Principal
Balance of a Rule of 78s Receivable, minus the Principal Balance of such
Receivable computed according to the actuarial method (plus accrued interest to
the date of prepayment), received by the Servicer during such Collection Period.

         "Total Servicing Fee" means the sum of the Basic Servicing Fee and the
Supplemental Servicing Fee.

         "Trust" means the Issuer.

         "Trust Agreement" means the trust agreement, dated as of January 21,
2003, as amended and restated, on February 25, 2003, among the Depositor, the
Owner Trustee and the Delaware Trustee.

         "Trust Fees and Expenses" means all accrued and unpaid Trustees' fees,
any amounts due to the Trustees for reimbursement of expenses or in respect of
indemnification and other administrative fees of the Trust.

         "Trustee" means either the Owner Trustee, the Indenture Trustee or the
Delaware Trustee, as the context requires.

         "Trustees" means the Owner Trustee, the Indenture Trustee and the
Delaware Trustee.

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

         "United States" means the United States of America.

         "Vice President" of any Person means any vice president of such Person,
whether or not designated by a number or words before or after the title "Vice
President", who is a duly elected officer of such Person.

         "Warranty Purchase Payment" means, with respect to a Payment Date and
to a Warranty Receivable repurchased by the Seller as of the end of the related
Collection Period, which Receivable is (i) a Precomputed Receivable, (a) the sum
of (1) all Scheduled Payments on such

                                       18
<PAGE>

Receivable due after the last day of such Collection Period, (2) all past due
Scheduled Payments for which an Advance has not been made, (3) all Outstanding
Advances made in respect of such Receivable and (4) an amount equal to any
reimbursement of Outstanding Advances made pursuant to the first sentence of
Section 4.04(c) with respect to such Receivable minus (b) the sum of (1) all
Payments Ahead in respect of such Warranty Receivable held by the Servicer or on
deposit in the Payahead Account, (2) any Rebate and (3) any proceeds of the
liquidation of such Receivable previously received (to the extent applied to
reduce the Principal Balance of such Receivable) or (ii) a Simple Interest
Receivable, the sum of (a) the unpaid principal balance owed by the related
Obligor in respect of such Receivable and (b) interest on such unpaid principal
balance at a rate equal to the APR of the related Receivable from the date of
last payment by such Obligor to the last day of such Collection Period.

         "Warranty Receivable" means a Receivable which the Seller is required
to repurchase pursuant to Section 2.04.

         "Yield Supplement Account" means the account designated as such, and
established and maintained pursuant to Section 4.01.

         "Yield Supplement Account Deposit" means the initial deposit of cash in
the amount of $267,720.61 made by or on behalf of the Seller into the Yield
Supplement Account on the Closing Date.

         "Yield Supplement Amount" means, with respect to any Collection Period
and the related Deposit Date, the aggregate amount by which one month's interest
on the Principal Balance as of the first day of such Collection Period of each
Discount Receivable (other than a Discount Receivable that is a Defaulted
Receivable) at a rate equal to the Required Rate, exceeds one month's interest
on such Principal Balance at the APR of each such Receivable.

         "Yield Supplement Withdrawal Amount" means, with respect to any
Collection Period and the related Deposit Date, the lesser of (a) the amount on
deposit in the Yield Supplement Account and (b) the sum of (i) the Yield
Supplement Amount and (ii) after giving effect to the withdrawal of the Yield
Supplement Amount, the amount by which the amount on deposit in the Yield
Supplement Account exceeds the Maximum Yield Supplement Amount.

         Section 1.02. Other Definitional Provisions.

         (a) Capitalized terms used herein that are not otherwise defined herein
shall have the meanings ascribed thereto in the Indenture.

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

         Section 1.03. Interpretive Provisions.

         (a) For all purposes of this Agreement, except as otherwise expressly
provided or unless the context otherwise requires, (i) terms used herein
include, as appropriate, all genders and the plural as well as the singular,
(ii) references to words such as "herein", "hereof" and the

                                       19
<PAGE>

like shall refer to this Agreement as a whole and not to any particular part,
article or section within this Agreement, (iii) references to a section such as
"Section 1.01" and the like shall refer to the applicable section of this
Agreement, (iv) the term "include" and all variations thereof shall mean
"include without limitation", (v) the term "or" shall include "and/or", and (vi)
the term "proceeds" shall have the meaning set forth in the applicable UCC.

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

                                  ARTICLE TWO

             CONVEYANCE OF RECEIVABLES; CUSTODY OF RECEIVABLES FILES

         Section 2.01. Conveyance of Receivables.

         (a)  In consideration of the Issuer's delivery to or upon the order of
the Seller of the Certificates and the net proceeds of the sale of the Notes,
less an amount equal to the Reserve Fund Initial Deposit to be deposited to the
Reserve Fund and the Yield Supplement Account Deposit to be deposited to the
Yield Supplement Account, each on the Closing Date, the Seller does hereby sell,
transfer, assign, set over and otherwise convey to the Issuer, without recourse
(subject to the obligations of the Seller set forth herein), all right, title
and interest of the Seller in, to and under:

              (i) the Receivables and all monies due thereon or paid thereunder
         or in respect thereof (including proceeds of the repurchase of
         Receivables by the Seller pursuant to Section 2.04 or the purchase of
         Receivables by the Servicer pursuant to Section 3.08 or 8.01) on or
         after the Cutoff Date;

              (ii) the security interests in the Financed Vehicles;

              (iii) any proceeds of any physical damage insurance policies
         covering the Financed Vehicles and in any proceeds of any credit life
         or credit disability insurance policies relating to the Receivables or
         the Obligors;

              (iv) any proceeds of Dealer Recourse;

              (v) the Receivables Purchase Agreement, but not the obligations of
         the Seller thereunder;

                                       20
<PAGE>

              (vi) the right to realize upon any property (including the right
         to receive future Liquidation Proceeds) that shall have secured a
         Receivable and have been repossessed by or on behalf of the Issuer;

              (vii) all funds on deposit from time to time in the Accounts,
         including the Reserve Fund Initial Deposit and the Yield Supplement
         Account Deposit, and in all investment income and proceeds thereof;

              (viii) any Servicer Letter of Credit; and

              (ix) the proceeds of any and all of the foregoing.

The Seller hereby confirms to the Issuer that, as of the Closing Date, the
Seller shall have caused the portions of all related electronic records relating
to the Receivables to be clearly and unambiguously marked, and shall have made
the appropriate entries in its general accounting records, to indicate that such
Receivables have been transferred and sold to the Issuer.

         (b)  The parties hereto intend that the conveyance hereunder be a sale.
In the event that the conveyance hereunder is not for any reason considered a
sale, the Seller hereby grants to the Issuer a first priority perfected security
interest in all of its right, title and interest in, to and under the
Receivables, and all other property conveyed hereunder and all proceeds of any
of the foregoing. The parties hereto intend that this Agreement constitute a
security agreement under applicable law. Such grant is made to secure the
payment of all amounts payable hereunder.

         Section 2.02.    Custody of Receivable Files. To assure uniform quality
in servicing the Receivables and to reduce administrative costs, the Issuer
hereby revocably appoints the Servicer, and the Servicer accepts such
appointment, to act for the benefit of the Issuer and the Indenture Trustee as
custodian of the following documents or instruments which are hereby
constructively delivered to the Indenture Trustee, as pledgee of the Issuer, as
of the Closing Date with respect to each Receivable:

              (a) the fully executed original of the Receivable;

              (b) documents evidencing or related to any Insurance Policy;

              (c) the original credit application of each Obligor, fully
         executed by such Obligor on AHFC's customary form, or on a form
         approved by AHFC for such application;

              (d) the original certificate of title (or evidence that such
         certificate of title has been applied for) or such documents that the
         Servicer shall keep on file, in accordance with its customary
         procedures, evidencing the security interest in the related Financed
         Vehicle; and

              (e) any and all other documents that the Seller or the Servicer,
         as the case may be, shall keep on file, in accordance with its
         customary procedures, relating to such Receivable or the related
         Obligor or Financed Vehicle.

                                       21
<PAGE>

         Section 2.03. Representations and Warranties of Seller as to the
Receivables. The Seller makes the following representations and warranties as to
the Receivables on which the Issuer shall rely in acquiring the Receivables.
Such representations and warranties speak as of the execution and delivery of
this Agreement and as of the Closing Date, but shall survive the sale, transfer
and assignment of the Receivables to the Issuer and the pledge thereof to the
Indenture Trustee.

              (a) Characteristics of Receivables. Each Receivable (i) shall have
         been originated in the United States by a Dealer for the retail sale of
         the related Financed Vehicle in the ordinary course of such Dealer's
         business, shall have been fully and properly executed by the parties
         thereto, shall have been purchased by AHFC from such Dealer under an
         existing agreement with AHFC, shall have been validly assigned by such
         Dealer to AHFC in accordance with the terms of such agreement and shall
         have been subsequently sold by AHFC to the Seller pursuant to the
         Receivables Purchase Agreement, (ii) shall have created or shall create
         a valid, continuing and enforceable first priority security interest in
         favor of AHFC in the related Financed Vehicle, which security interest
         has been assigned by AHFC to the Seller and shall be assignable, and
         shall be so assigned, by the Seller to the Owner Trustee, (iii) shall
         contain customary and enforceable provisions such that the rights and
         remedies of the holder thereof shall be adequate for realization
         against the collateral of the benefits of the security, (iv) shall,
         except as otherwise provided in this Agreement, provide for level
         Monthly Payments (provided that the payment in the first or last month
         in the life of the Receivable may be minimally different from the level
         payment) that fully amortize the Amount Financed over its original term
         and shall provide for a finance charge or shall yield interest at its
         APR, (v) shall provide for, in the event that such Receivable is
         prepaid, a prepayment that fully pays the Principal Balance and
         includes accrued but unpaid interest at least through the date of
         prepayment in an amount calculated by using an interest rate at least
         equal to its APR, (vi) shall have an Obligor that is not a federal,
         state or local governmental entity and (vii) is a retail installment
         contract.

              (b) Schedule of Receivables. The information set forth in the
         Schedule of Receivables shall be true and correct in all material
         respects as of the opening of business on the Cutoff Date, and no
         selection procedures believed to be adverse to the Securityholders were
         utilized in selecting the Receivables from those motor vehicle
         receivables of AHFC which met the selection criteria set forth in this
         Agreement.

              (c) Compliance with Law. Each Receivable and each sale of the
         related Financed Vehicle shall have complied at the time it was
         originated or made, and shall comply at the time of execution of this
         Agreement, in all material respects with all requirements of applicable
         federal, state and local laws, and regulations thereunder, including
         usury laws, the Federal Truth-in-Lending Act, the Equal Credit
         Opportunity Act, the Fair Credit Billing Act, the Fair Credit Reporting
         Act, the Fair Debt Collection Practices Act, the Federal Trade
         Commission Act, the Magnuson-Moss Warranty Act, Federal Reserve Board
         Regulations B , M and Z, state adaptations of the National Consumer Act
         and of the Uniform Consumer Credit Code and other consumer credit,
         equal credit opportunity and disclosure laws.

                                       22
<PAGE>

              (d) Binding Obligation. Each Receivable shall constitute the
         genuine, legal, valid and binding payment obligation in writing of the
         related Obligor, enforceable by the holder thereof in accordance with
         its terms, except as enforceability may be subject to or limited by
         bankruptcy, insolvency, reorganization, moratorium, liquidation or
         other similar laws affecting the enforcement of creditors' rights in
         general and by general principles of equity, regardless of whether such
         enforceability shall be considered in a proceeding in equity or at law.

              (e) No Bankrupt Obligors. According to the records of the Seller,
         as of the Cutoff Date, no Obligor is the subject of a bankruptcy
         proceeding.

              (f) Security Interest in Financed Vehicles. According to the
         records of the Seller, as of the Cutoff Date, no Financed Vehicle has
         been repossessed and not reinstated and immediately prior to the sale,
         assignment and transfer thereof, all necessary steps shall be taken so
         that each Receivable shall be secured by a validly perfected first
         priority security interest in the related Financed Vehicle in favor of
         AHFC as secured party or all necessary and appropriate action with
         respect to such Receivable shall have been taken to perfect a first
         priority security interest in such Financed Vehicle in favor of AHFC as
         secured party.

              (g) Receivables in Force. No Receivable shall have been satisfied,
         subordinated or rescinded, nor shall any Financed Vehicle have been
         released in whole or in part from the lien granted by the related
         Receivable.

              (h) No Waivers. No provision of a Receivable shall have been
         waived in such a manner that such Receivable fails to meet all of the
         other representations and warranties made by the Seller herein with
         respect thereto.

              (i) No Amendments. No Receivable shall have been amended or
         modified in such a manner that the total number of Scheduled Payments
         has been increased or that the related Amount Financed has been
         increased or that such Receivable fails to meet all of the other
         representations and warranties made by the Seller herein with respect
         thereto.

              (j) No Defenses. No facts shall be known to the Seller which would
         give rise to any right of rescission, setoff, counterclaim or defense,
         nor shall the same have been asserted or threatened, with respect to
         any Receivable.

              (k) No Liens. To the knowledge of the Seller, no liens or claims
         shall have been filed, including liens for work, labor or materials
         relating to a Financed Vehicle, that shall be liens prior to, or equal
         or coordinate with, the security interest in such Financed Vehicle
         granted by the related Receivable. To the knowledge of the Seller,
         there are no tax liens against the Seller, or against an Obligor
         affecting the related Receivable.

              (l) No Defaults. Except for payment defaults that, as of the
         Cutoff Date, have been continuing for a period of not more than 30
         days, no default, breach, violation or event permitting acceleration
         under the terms of any Receivable shall have occurred as of the Cutoff
         Date and no continuing condition that with notice or the lapse of time
         would constitute a default, breach, violation or event permitting
         acceleration under the terms of

                                       23
<PAGE>

         any Receivable shall have arisen; and the Seller shall not have waived
         any of the foregoing except as otherwise permitted hereunder.

              (m) Insurance. Pursuant to the Receivables, each Obligor has been
         required to obtain physical damage insurance covering the related
         Financed Vehicle and the Obligor is required under the terms of the
         related Receivable to maintain such insurance.

              (n) Title. It is the intention of the Seller that the transfer and
         assignment herein contemplated, taken as a whole, constitute a sale of
         the Receivables from the Seller to the Issuer and that the beneficial
         interest in and title to the Receivables not be part of the debtor's
         estate in the event of the filing of a bankruptcy petition by or
         against the Seller under any bankruptcy law. Other than (1) the sale by
         the Seller to the Issuer pursuant to this Agreement and (2) the
         security interest granted by the Issuer to the Indenture Trustee in the
         Indenture, no Receivable has been sold, transferred, assigned or
         pledged by the Seller to any Person other than the Issuer, and no
         Receivable has been sold, transferred, assigned or pledged by the
         Issuer to any Person other than the Indenture Trustee, and no provision
         of a Receivable shall have been waived, except as provided in clause
         (h) above; immediately prior to the transfer and assignment herein
         contemplated, the Seller had good and marketable title to each
         Receivable free and clear of all Liens and rights of any other Person
         and immediately prior to the pledge of security interest contemplated
         in the Indenture, the Issuer had good and marketable title to each
         Receivable free and clear of all Liens and rights of any other Person;
         immediately upon the transfer and assignment contemplated herein, the
         Issuer shall have good and marketable title to each Receivable, free
         and clear of all Liens and rights of any other Person and immediately
         upon the pledge of the security interest contemplated in the Indenture,
         the Indenture Trustee will have a valid and continuing security
         interest in the Receivables; and both the transfer and assignment
         herein contemplated and the pledge of security interest contemplated by
         the Indenture have been perfected under the applicable UCC.

              (o) Lawful Assignment. No Receivable shall have been originated
         in, or shall be subject to the laws of, any jurisdiction under which
         the sale, transfer and assignment of such Receivable under this
         Agreement or pursuant to a transfer of the Securities shall be
         unlawful, void or voidable.

              (p) All Filings Made. Both the Seller and the Issuer,
         respectively, have caused or will have caused, or have taken or will
         take, within ten days of the Closing Date, all steps necessary,
         including the filing of all appropriate financing statements (including
         UCC filings) necessary in the appropriate jurisdictions under the
         applicable law, to give the Issuer a first priority perfected security
         interest in the Receivables, and to give the Indenture Trustee a first
         priority perfected security interest therein, shall have been made.
         Except as contemplated hereby or in the Indenture, as applicable,
         neither the Seller or the Issuer has authorized the filing of nor is
         aware of any financing statements with respect to the Receivables,
         other than such financing statements that have been terminated on or
         prior to the Closing Date.

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<PAGE>

              (q) One Original. There shall be only one original executed copy
         of each Receivable.

              (r) Chattel Paper. Each Receivable constitutes "tangible chattel
         paper" as defined within the meaning of the applicable UCC.

              (s) Maturity of Receivables. Each Receivable shall have an
         original maturity of not less than 12 months nor greater than 60 months
         and, as of the Cutoff Date, a remaining maturity of not less than 6
         months nor greater than 59 months.

              (t) Finance Charge. Each Receivable provides for the payment of a
         finance charge calculated on the basis of an APR ranging from 1.90% to
         15.39%.

              (u) Principal Balance. Each Receivable had an original principal
         balance of not less than $2,013.32 nor more than $81,062.46 and an
         average unpaid principal balance, as of the Cutoff Date, of $15,164.09.

              (v) Origination. Each Receivable was originated on or after June
         12, 1998 and on or before October 30, 2002.

              (w) No Overdue Payments. No Receivable shall have a Scheduled
         Payment that is more than 30 days past due as of the Cutoff Date.

              (x) Location of Receivable Files. Each Receivable File shall be
         kept at one of the locations listed in Schedule B hereto.

              (y) Financed Vehicles. Each Financed Vehicle shall be a new or
         used Honda or Acura motor vehicle.

              (z) Addresses of Obligors. The Obligor under each Receivable had a
         current billing address in the United States as of the Cutoff Date.

              (aa) Security Interest. The Indenture creates a valid and
         continuing security interest (as defined in the applicable UCC) in the
         Receivables in favor of the Indenture Trustee, which security interest
         is prior to all other Liens, and is enforceable as such as against
         creditors of and purchasers from the Issuer.

              (bb) Possession of Documents. The Servicer has in its possession
         all original copies of the agreements that constitute or evidence the
         Receivables. The agreements that constitute or evidence the Receivables
         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 filed or to be filed
         against the Issuer in favor of the Indenture Trustee in connection
         herewith describing the Receivables contain a statement to the
         following effect: "A purchase of or security interest in any collateral
         described in this financing statement will violate the rights of the
         Indenture Trustee."

         Section 2.04. Repurchase of Receivables Upon Breach. Upon discovery by
the Seller, the Servicer or the Owner Trustee or upon the actual knowledge of a
Responsible Officer of the

                                       25
<PAGE>

Indenture Trustee of a breach of any of the representations and warranties of
the Seller set forth in Section 2.03 that materially and adversely affects the
interests of the Issuer, the Trustees or the Securityholders in any Receivable,
the party discovering such breach shall give prompt written notice to the
others. As of the last day of the second Collection Period following the
Collection Period in which it discovers or receives notice of such breach (or,
at the Seller's election, the last day of the first Collection Period following
the Collection Period in which it discovers or receives notice of such breach),
the Seller shall, unless such breach shall have been cured in all material
respects, repurchase such Receivable, and, if necessary, the Seller shall
enforce the obligation of AHFC under the Receivables Purchase Agreement to
repurchase such Receivable from the Seller. This repurchase obligation shall
apply to all representations and warranties of the Seller contained in Section
2.03 whether or not the Seller has knowledge of the breach at the time of the
breach or at the time the representations and warranties were made. In
consideration of the repurchase of any such Receivable, on the related Deposit
Date, the Seller shall remit the Warranty Purchase Payment in respect of such
Receivable to the Collection Account in the manner specified in Section 4.05 and
shall be entitled to receive the Released Warranty Amount. In the event that, as
of the date of execution and delivery of this Agreement, any Liens or claims
shall have been filed, including Liens for work, labor or materials relating to
a Financed Vehicle, that shall be prior to, or equal or coordinate with, the
lien granted by the related Receivable, which Liens or claims shall not have
been satisfied or otherwise released in full as of the Closing Date, and such
breach materially and adversely affects the interests of the Issuer, the
Trustees or the Securityholders in such Receivable, the Seller shall repurchase
such Receivable on the terms and in the manner specified above. Upon any such
repurchase, the Issuer shall, without further action, be deemed to transfer,
assign, set-over and otherwise convey to the Seller, all right, title and
interest of the Issuer in, to and under such repurchased Receivable, all monies
due or to become due with respect thereto and all proceeds thereof. The Issuer
and the Trustees shall execute such documents and instruments of transfer and
assignment and take such other actions as shall be reasonably requested by the
Seller to effect the conveyance of such Receivable pursuant to this Section. The
sole remedy of the Issuer, the Trustees and the Securityholders with respect to
a breach of the Seller's representations and warranties pursuant to Section 2.03
or with respect to the existence of any such Liens or claims shall be to require
the Seller to repurchase the related Receivable pursuant to this Section and to
enforce AHFC's obligation to repurchase such Receivables from the Seller
pursuant to the Receivables Purchase Agreement. Neither the Owner Trustee nor
the Indenture Trustee shall have any duty to conduct an affirmative
investigation as to the occurrence of any condition requiring the repurchase of
any Receivable pursuant to Section 2.04 or the eligibility of any Receivables
for purposes of this Agreement. In addition, no party to this agreement may
waive a material breach of any of the representations and warranties contained
in Section 2.03 above.

         Section 2.05. Duties of Servicer as Custodian.

         (a) Safekeeping. The Servicer, in its capacity as custodian, shall hold
the Receivable Files for the benefit of the Issuer and maintain such accurate
and complete accounts, records and computer systems pertaining to each
Receivable File as shall enable the Issuer to comply with this Agreement. In
performing its duties as custodian, the Servicer shall act with reasonable care,
using that degree of skill and attention that it exercises with respect to the
receivable files of comparable motor vehicle receivables that the Servicer
services for itself or others. The Servicer shall conduct, or cause to be
conducted, periodic examinations of the files of all receivables

                                       26
<PAGE>

owned or serviced by it which shall include the Receivable Files held by it
under this Agreement, and of the related accounts, records and computer systems,
in such a manner as shall enable the Issuer or the Indenture Trustee to verify
the accuracy of the Servicer's record keeping. The Servicer shall promptly
report to the Issuer and the Indenture Trustee any failure on its part to hold
the Receivable Files and maintain its accounts, records and computer systems as
herein provided and promptly take appropriate action to remedy any such failure.
Nothing herein shall be deemed to require an initial review or any periodic
review of the Receivable Files by the Issuer or the Indenture Trustee.

         (b) Maintenance of and Access to Records. The Servicer shall maintain
each Receivable File solely in its capacity as Servicer at one of its offices
specified in Schedule B hereto or at such other office as shall be specified to
the Issuer and the Indenture Trustee by 30 days' prior written notice. The
Servicer shall make available to the Issuer and the Indenture Trustee or its
duly authorized representatives, attorneys or auditors the Receivable Files and
the related accounts, records and computer systems maintained by the Servicer at
such times as the Issuer and the Indenture Trustee shall reasonably instruct.

         (c) Release of Documents. Upon instruction from the Indenture Trustee,
the Servicer shall release any document in the Receivable Files to the Indenture
Trustee or its agent or designee, as the case may be, at such place or places as
the Indenture Trustee may designate, as soon as practicable. The Servicer shall
not be responsible for any loss occasioned by the failure of the Indenture
Trustee to return any document or any delay in doing so.

         Section 2.06. Instructions; Authority to Act. The Servicer shall be
deemed to have received proper instructions with respect to the Receivable Files
upon its receipt of written instructions signed by a Responsible Officer of the
Indenture Trustee. A certified copy of a bylaw or of a resolution of the board
of directors of the Indenture Trustee shall constitute conclusive evidence of
the authority of any such Responsible Officer to act and shall be considered in
full force and effect until receipt by the Servicer of written notice to the
contrary given by the Indenture Trustee.

         Section 2.07. Indemnification by Custodian. The Servicer, as custodian
of the Receivable Files, shall fully indemnify and hold harmless the Issuer and
the Trustees for any and all liabilities, obligations, losses, compensatory
damages, payments, costs or expenses of any kind whatsoever that may be imposed
on, incurred or asserted against the Issuer and the Trustees as the result of
any improper act or omission in any way relating to the maintenance and custody
of the Receivable Files by the Servicer, as custodian; provided, however, that
the Servicer shall not be liable for any portion of any such amount resulting
from the willful misfeasance, bad faith or negligence (in the case of the Owner
Trustee or the Indenture Trustee) or gross negligence (in the case of the
Delaware Trustee only).

         Section 2.08. Effective Period and Termination. The Servicer's
appointment as custodian of the Receivable Files shall become effective as of
the Cutoff Date and shall continue in full force and effect until terminated
pursuant to this Section. If the Servicer shall resign as Servicer pursuant to
Section 6.05 or if all of the rights and obligations of the Servicer have been
terminated pursuant to Section 7.02, the appointment of the Servicer as
custodian of the Receivable Files shall be terminated without further action by
the Indenture Trustee or by the

                                       27
<PAGE>

Holders of Notes. The Indenture Trustee or, with the consent of the Indenture
Trustee, the Owner Trustee may terminate the Servicer's appointment as custodian
of the Receivable Files with cause at any time immediately upon written
notification to the Servicer and, without cause, upon 30 days' prior written
notification by the Servicer. As soon as practicable, but in no event later than
30 days immediately following the effective date of any termination of such
appointment, the Servicer shall deliver the Receivable Files to the Indenture
Trustee or its agent at such place or places as the Indenture Trustee may
reasonably designate. Notwithstanding the termination of the Servicer as
custodian of the Receivable Files, the Indenture Trustee agrees that upon any
such termination, the Indenture Trustee shall provide, or cause its agent to
provide, access to the Receivable Files to the Servicer for the purpose of
carrying out its duties and responsibilities with respect to the servicing of
the Receivables pursuant to this Agreement.

                                 ARTICLE THREE

                   ADMINISTRATION AND SERVICING OF RECEIVABLES

         Section 3.01. Duties of Servicer. The Servicer, for the benefit of the
Issuer (to the extent provided herein), shall manage, service, administer and
make collections on the Receivables (other than Administrative Receivables and
Warranty Receivables) with reasonable care, using that degree of skill and
attention that the Servicer exercises with respect to all comparable motor
vehicle receivables that it services for itself or others. The Servicer's duties
shall include collection and posting of all payments, responding to inquiries of
Obligors or by federal, state or local government authorities with respect to
the Receivables, investigating delinquencies, sending payment coupons to
Obligors, reporting tax information to Obligors in accordance with its customary
practices, policing the collateral, accounting for collections and furnishing
monthly and annual statements to the Trustees with respect to distributions,
generating federal income tax information, making Advances and performing the
other duties specified herein. The Servicer shall follow its customary
standards, policies and procedures and shall have full power and authority,
acting alone, to do any and all things in connection with such managing,
servicing, administration and collection that it may deem necessary or
desirable. Without limiting the generality of the foregoing, the Servicer shall
be authorized and empowered to execute and deliver, on behalf of itself, the
Issuer, the Trustees, the Securityholders or any of them, any and all
instruments of satisfaction or cancellation, or of partial or full release or
discharge and all other comparable instruments, with respect to the Receivables
and the Financed Vehicles. The Servicer is hereby authorized to commence, in its
own name or in the name of the Issuer, a legal proceeding to enforce a Defaulted
Receivable pursuant to Section 3.04 or to commence or participate in a legal
proceeding (including without limitation a bankruptcy proceeding) relating to or
involving a Receivable, including a Defaulted Receivable. If the Servicer
commences or participates in such a legal proceeding in its own name, the Issuer
shall thereupon be deemed to have automatically assigned, solely for the purpose
of collection on behalf of the party retaining an interest in such Receivable,
such Receivable and the other property conveyed to the Issuer pursuant to
Section 2.01 with respect to such Receivable to the Servicer for purposes of
commencing or participating in any such proceeding as a party or claimant, and
the Servicer is authorized and empowered by the Issuer to execute and deliver in
the Servicer's name any notices, demands, claims, complaints, responses,
affidavits or other documents or instruments in connection with any such
proceeding. If in any enforcement suit or legal proceeding it shall be held that
the Servicer may not enforce a Receivable on the grounds

                                       28
<PAGE>

that it shall not be a real party in interest or a holder entitled to enforce
such Receivable, the Owner Trustee on behalf of the Issuer shall, at the
Servicer's expense and written direction, take steps to enforce such Receivable,
including bring suit in its name or the name of the Issuer, the Indenture
Trustee, the Noteholders or the Certificateholders. The Owner Trustee on behalf
of the Issuer shall furnish the Servicer with any powers of attorney and other
documents and take any other steps which the Servicer may deem necessary or
appropriate to enable the Servicer to carry out its servicing and administrative
duties hereunder.

         Section 3.02. Collection of Receivable Payments. The Servicer shall
make reasonable efforts to collect all payments called for under the terms and
provisions of the Receivables as and when the same shall become due, and shall
follow such collection procedures as it follows with respect to all comparable
motor vehicle receivables that it services for itself or others. The Servicer
shall be authorized to grant extensions, rebates or adjustments on a Receivable
without the prior consent of the Issuer. If, as a result of the extending of
payments in accordance with the customary servicing standards of the Servicer,
any Receivable will be outstanding later than the Final Scheduled Maturity Date
occurs, the Servicer shall be obligated to repurchase such Receivable pursuant
to Section 3.08. In addition, in the event that any such rescheduling or
extension of a Receivable modifies the terms of such Receivable in such a manner
as to constitute a cancellation of such Receivable and the creation of a new
motor vehicle receivable that results in a deemed exchange thereof within the
meaning of Section 1001 of the Code, the Servicer shall purchase such Receivable
pursuant to Section 3.08, and the receivable created shall not be included in
the Issuer. Notwithstanding the foregoing, extensions or modifications of the
payment schedule of a Receivable can be made only in accordance with the
customary servicing procedures of the Servicer, provided that the amount of any
extension fee charged in connection with the extension of a Receivable is
deposited into the Collection Account by the Servicer in accordance with Section
4.05(a). The Servicer may, in accordance with its customary servicing
procedures, waive any prepayment charge, late payment charge or any other fees
that may be collected in the ordinary course of servicing the Receivables.

         Section 3.03. Rebates on Full Prepayments. In the event that the amount
of a full Prepayment by an Obligor under a Precomputed Receivable, after
adjustment for the applicable Rebate, is less than the amount that would be
payable under the actuarial method if a full Prepayment were made at the end of
the billing month under such Precomputed Receivable, either because the Rebate
calculated under the terms of such Precomputed Receivable is greater than the
amount calculable under the actuarial method or because the Servicer's customary
servicing procedure is to credit a greater Rebate, the Servicer, as part of its
servicing duties, shall remit such difference to the Trust by deposit into the
Collection Account pursuant to Section 4.05(a).

         Section 3.04. Realization Upon Receivables. On behalf of the Issuer,
the Servicer shall use its best efforts, consistent with its customary servicing
procedures, to repossess or otherwise comparably convert the ownership of any
Financed Vehicle that it has reasonably determined should be repossessed or
otherwise converted following a default under the Receivable secured by the
Financed Vehicle (and shall specify such Receivables to the Trustees no later
than the Determination Date following the end of the Collection Period in which
the Servicer shall have made such determination). The Servicer shall follow such
practices and procedures as it shall deem necessary or advisable and as shall be
customary and usual in its servicing of motor vehicle

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<PAGE>

receivables, which practices and procedures may include reasonable efforts to
realize upon any Dealer Recourse, selling the related Financed Vehicle at public
or private sale and other actions by the Servicer in order to realize upon such
a Receivable. The Servicer shall be entitled to recover its reasonable
Liquidation Expenses with respect to each Defaulted Receivable, which are not to
exceed the related Net Liquidation Proceeds with respect to each such Defaulted
Receivable. All Net Liquidation Proceeds realized in connection with any such
action with respect to a Receivable shall be deposited by the Servicer in the
Collection Account in the manner specified in Section 4.02(a). The foregoing is
subject to the proviso that, in any case in which the Financed Vehicle shall
have suffered damage, the Servicer shall not expend funds in connection with any
repair or towards the repossession of such Financed Vehicle unless it shall
determine in its discretion that such repair and/or repossession shall increase
the Liquidation Proceeds of the related Receivable by an amount greater than the
amount of such expenses.

         Section 3.05. Maintenance of Physical Damage Insurance Policies. The
Servicer shall, in accordance with its customary servicing procedures and
underwriting standards, require that each Obligor shall have obtained physical
damage insurance covering each Financed Vehicle as of the origination of the
related Receivable.

         Section 3.06. Maintenance of Security Interests in Financed Vehicles.
The Servicer shall, in accordance with its customary servicing procedures and at
its own expense, take such steps as are necessary to maintain perfection of the
security interest created by each Receivable in the related Financed Vehicle.
The Servicer is hereby authorized to take such steps as are necessary to
reperfect such security interest on behalf of the Issuer in the event of the
relocation of a Financed Vehicle or for any other reason. In the event that the
assignment of a Receivable to the Issuer is insufficient, without a notation on
the related Financed Vehicle's certificate of title, to grant to the Issuer a
first priority perfected security interest in the related Financed Vehicle, the
Servicer hereby agrees to serve as the agent of the Issuer for the purpose of
perfecting the security interest of the Issuer in such Financed Vehicle and
agrees that the Servicer's listing as the secured party on the certificate of
title is solely in its capacity as agent of the Issuer.

         Section 3.07. Covenants of Servicer. The Servicer makes the following
covenants on which the Issuer shall rely in accepting the Receivables in trust
pursuant to Section 2.01:

              (a) Liens in Force. Except as otherwise contemplated by this
         Agreement, the Servicer shall not release in whole or in part any
         Financed Vehicle from the security interest securing the related
         Receivable.

              (b) No Impairment. The Servicer shall do nothing to impair the
         rights of the Issuer in the Receivables.

              (c) No Amendments. Subject to Section 3.02, the Servicer shall not
         amend or otherwise modify any Receivable such that the total number of
         Scheduled Payments is extended beyond the Final Scheduled Maturity
         Date, or either the Amount Financed or the APR is altered.

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<PAGE>

         Section 3.08. Purchase of Receivables Upon Breach. Upon discovery by
the Seller, the Servicer or the Issuer or upon the actual knowledge of a
Responsible Officer of the Indenture Trustee or Owner Trustee of a breach of any
of the covenants of the Servicer set forth in Section 3.07 that materially and
adversely affects the interests of the Issuer, the Indenture Trustee or the
Securityholders in any Receivable, or if an improper extension, rescheduling or
modification of a Receivable is made by the Servicer as described in Section
3.02, the party discovering such breach shall give prompt written notice to the
others. As of the last day of the second Collection Period following the
Collection Period in which it discovers or receives notice of such breach (or,
at the Servicer's election, the last day of the first Collection Period
following the Collection Period in which it discovers or receives notice of such
breach), the Servicer shall, unless such breach or impropriety shall have been
cured in all material respects, purchase from the Issuer such Receivable. In
consideration of the purchase of any such Receivable, on the related Deposit
Date the Servicer shall remit the Administrative Purchase Payment to the
Collection Account in the manner specified in Section 4.05, and shall be
entitled to receive the Released Administrative Amount. Upon such deposit of the
Administrative Purchase Payment, the Servicer shall for all purposes of this
Agreement be deemed to have released all claims for reimbursement of Outstanding
Advances made in respect of such Receivable. The sole remedy of the Issuer, the
Trustees or the Securityholders against the Servicer with respect to a breach
pursuant to Section 3.02 or 3.07 shall be to require the Servicer to purchase
the related Receivables pursuant to this Section, except as otherwise provided
in Section 6.02. Neither the Owner Trustee nor the Indenture Trustee shall have
any duty to conduct any affirmative investigation as to the occurrence of any
condition requiring the repurchase of any Receivable pursuant to this Section.

         Section 3.09. Total Servicing Fee; Payment of Certain Expenses by
Servicer. As compensation for the performance of its obligations hereunder, the
Servicer shall be entitled to receive on each Payment Date the Total Servicing
Fee. The Basic Servicing Fee in respect of a Collection Period shall be
calculated based on a 360 day year comprised of twelve 30-day months. Except to
the extent otherwise provided herein, the Servicer shall be required to pay all
expenses incurred by it in connection with its activities under this Agreement
(including fees and disbursements of the Trustees and independent accountants,
taxes imposed on the Servicer, expenses incurred in connection with
distributions and reports to Securityholders and all other fees and expenses not
expressly stated under this Agreement to be for the account of the
Securityholders).

         Section 3.10. Servicer's Certificate. On or before each Determination
Date, the Servicer shall deliver to the Trustees and each Rating Agency a
Servicer's Certificate containing all information necessary to make the
distributions required by Sections 4.06 and 4.07 in respect of the related
Collection Period and all information necessary for the Trustees to send
statements to Securityholders pursuant to Section 4.10. The Servicer shall also
specify in writing to the Trustees, no later than the Determination Date
following the last day of a Collection Period as of which the Seller shall be
required to repurchase or the Servicer shall be required to purchase a
Receivable, the identity of any such Receivable and the identity of any
Receivable which the Servicer shall have determined to be a Defaulted Receivable
during such Collection Period. Receivables purchased or to be purchased by the
Servicer or the Seller and Receivables as to which the Servicer has determined
during such Collection Period to be Defaulted Receivables and with respect to
which payment of the Administrative Purchase Payment or Warranty Purchase
Payment has been provided from whatever source as of last day of such Collection

                                       31
<PAGE>

Period shall be identified by the Seller's account number with respect to such
Receivable (as specified in the Schedule of Receivables).

         Section 3.11. Annual Statement as to Compliance; Notice of Default.

         (a) The Servicer shall deliver to the Trustees and each Rating Agency,
on or before 90 days after the end of each fiscal year, commencing with the
fiscal year ended March 31, 2004, an Officer's Certificate of the Servicer,
stating that (i) a review of the activities of the Servicer during the preceding
12-month period ended March 31 (or, if applicable, such shorter period in the
case of the first such Officer's Certificate) and of its performance under this
Agreement has been made under such officer's supervision, and (ii) to such
officer's knowledge, based on such review, the Servicer has fulfilled all its
obligations under this Agreement throughout such period, or, if there has been a
default in the fulfillment of any such obligation, specifying each such default
known to such officer and the nature and status thereof.

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

         Section 3.12. Annual Accountants' Report. The Servicer shall cause a
firm of independent accountants (who may also render other services to the
Servicer or to the Seller) to deliver to the Trustees on or before June 30 of
each year, beginning with the June 30 that is at least six months after the
Closing Date, a report with respect to the preceding 12-month period ended March
31 (or, if applicable, such shorter period in the case of the first such report)
to the effect that such accountants have examined certain records and documents
relating to the servicing of the Receivables under this Agreement (using
procedures specified in such report, which procedures shall be substantially in
compliance with generally accepted auditing standards and which procedure shall
be specified to the Trustees by the Servicer in writing; in the event such firm
of independent accountants requires any of the Trustees to agree to the
procedures performed by such firm, the Servicer shall direct such Trustees in
writing to so agree; it being understood and agreed that the Trustees will
deliver such letters of agreement in conclusive reliance upon the direction of
the Servicer, and none of the Trustees make any representation of warranty,
independent inquiry or investigation as to, and shall have no obligation or
liability in respect of, the sufficiency, validity or correctness of such
procedures) and that nothing has come to their attention indicating that such
servicing has not been conducted in compliance with the customary servicing
procedures of the Servicer, including but not limited to the procedures set
forth in this Agreement, except for (i) such exceptions as such firm shall
believe to be immaterial and (ii) such other exceptions as shall be set forth in
such report. Such report shall also indicate that the firm is independent with
respect to the Seller and the Servicer within the meaning of the Code of
Professional Ethics of the American Institute of Certified Public Accountants.

         Section 3.13. Access to Certain Documentation and Information Regarding
Receivables. The Servicer shall provide to the Trustees reasonable access to the
documentation regarding the Receivables. The Servicer shall provide such access
to any Securityholder only in such cases where a Securityholder is required by
applicable statutes or regulations to review such documentation. In each case,
such access shall be afforded without charge but only upon

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<PAGE>

reasonable request and during normal business hours at the respective offices of
the Servicer. Nothing in this Section shall derogate from the obligation of the
Servicer to observe any applicable law prohibiting disclosure of information
regarding the Obligors, and the failure of the Servicer to provide access as
provided in this Section as a result of such obligation shall not constitute a
breach of this Section.

         Section 3.14. Amendments to Schedule of Receivables. If the Servicer,
during a Collection Period, assigns to a Receivable an account number that
differs from the original account number identifying such Receivable on the
Schedule of Receivables, the Servicer shall deliver to the Seller and the
Trustees on or before the Payment Date relating to such Collection Period an
amendment to the Schedule of Receivables reporting the newly assigned account
number, together with the old account number of each such Receivable. The first
such delivery of amendments to the Schedule of Receivables shall include monthly
amendments reporting account numbers appearing on the Schedule of Receivables
with the new account numbers assigned to such Receivables during any prior
Collection Period.

         Section 3.15. Reports to Securityholders and Rating Agencies.

         (a) At the expense of the Issuer, the Indenture Trustee shall provide
to any Note Owner and the Owner Trustee shall provide to any Certificateholder
who so requests in writing a copy of (i) any Servicer's Certificate, (ii) any
annual statement as to compliance described in Section 3.1l(a), (iii) any annual
accountants' report described in Section 3.12, (iv) any statement to
Securityholder pursuant to Section 4.10, (v) the Trust Agreement, (vi) the
Indenture or (vii) this Agreement (without Exhibits). The Indenture Trustee or
the Owner Trustee, as applicable, may require such Securityholder or Note Owner
to pay a reasonable sum to cover the cost of the Trustee's complying with such
request.

         (b) The Servicer shall forward to each Rating Agency a copy of each (i)
Servicer's Certificate, (ii) annual statement as to compliance described in
Section 3.11(a), (iii) Officer's Certificate of the Servicer described in
Section 3.11(b), (iv) annual accountants' report pursuant to Section 3.12, (v)
statement to Securityholders pursuant to Section 4.10 and (vi) other report it
may receive pursuant to this Agreement, the Trust Agreement or the Indenture.

         Section 3.16. Appointment of Subservicer. The Servicer may at any time
appoint a subservicer to perform all or any portion of its obligations as
Servicer hereunder if each Rating Agency and the Indenture Trustee has received
10 days prior written notice of the Servicer's intention to do so and has not
notified the Servicer that such an appointment would or might result in the
qualification, reduction or withdrawal of a rating then assigned by such Rating
Agency to any Class of Notes; provided, however, that the Servicer shall remain
obligated and be liable to the Issuer, the Owner Trustee, the Indenture Trustee,
the Certificateholders and the Noteholders for the servicing and administering
of the Receivables in accordance with the provisions hereof without diminution
of such obligation and liability by virtue of the appointment of such
subservicer and to the same extent and under the same terms and conditions as if
the Servicer alone were servicing and administering the Receivables. The fees
and expenses of the subservicer shall be as agreed between the Servicer and its
subservicer from time to time, and none of the Issuer, the Owner Trustee, the
Indenture Trustee, the Certificateholders or the Noteholders shall have any
responsibility therefor.

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<PAGE>

                                  ARTICLE FOUR

                          DISTRIBUTIONS; RESERVE FUND;
                          STATEMENTS TO SECURITYHOLDERS

         Section 4.01. Establishment of Accounts.

         (a) The Servicer shall establish and maintain an Eligible Account with
and in the name of the Indenture Trustee for the benefit of (i) the
Securityholders (the "Collection Account"), (ii) the Noteholders (the "Note
Distribution Account"), (iii) the Noteholders (the "Reserve Fund"), (iv) the
Securityholders (the "Yield Supplement Account") and (v) the Securityholders
(the "Payahead Account"), in each case, bearing a designation clearly indicating
that the funds deposited therein are held for the benefit of the related
Securityholders. Except as otherwise provided in this Agreement, in the event
that the Indenture Trustee is no longer an Eligible Institution, the Servicer
shall, with the assistance of the Indenture Trustee as necessary, cause the
Accounts to be moved to an Eligible Institution.

         (b) To the extent permitted by applicable laws, rules and regulations,
all amounts held in (i) the Collection Account, the Note Distribution Account,
the Reserve Fund and the Yield Supplement Account shall be either invested by
the Indenture Trustee in Eligible Investments selected in writing by the
Servicer or maintained in cash and (ii) the Payahead Account shall be either
invested by the Indenture Trustee in investments defined in clause (vii) of the
definition of the term "Eligible Investments" selected in writing by the
Servicer or maintained in cash. Earnings on investment of funds in the Accounts
(other than the Yield Supplement Account and the Reserve Fund) (net of losses
and investment expenses) shall be paid to the Servicer as part of the
Supplemental Servicing Fee and any losses and investment expenses shall be
charged against the funds on deposit in the related Account.

              (i) Except as otherwise provided in Section 4.01(b), the Indenture
         Trustee shall possess all right, title and interest in all funds on
         deposit from time to time in the Accounts and in all proceeds thereof
         (including all income thereon) and all such funds, investments,
         proceeds and income shall be part of the Owner Trust Estate. The
         Accounts shall be under the sole dominion and control of the Indenture
         Trustee for the benefit of the Noteholders or the Securityholders, as
         the case may be.

              (ii) Notwithstanding anything else contained herein, the Servicer
         agrees that each Account and the Certificate Distribution Account will
         be established only with an Eligible Institution which agrees
         substantially as follows: (A) it will comply with Entitlement Orders
         related to such account issued by the Indenture Trustee without further
         consent by the Servicer; (B) until termination of this Agreement, it
         will not enter into any other agreement related to such account
         pursuant to which it agrees to comply with Entitlement Orders of any
         Person other than the Indenture Trustee; (C) all Account Property
         delivered or credited to it in connection with such account and all
         proceeds thereof will be promptly credited to such account; (D) it will
         treat all Account Property as Financial Assets; and (E) all Account
         Property will be physically delivered (accompanied by any required
         endorsements) to, or credited to an account in the name of, the
         Eligible Institution maintaining the related Account in accordance with
         such Eligible Institution's

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<PAGE>

         customary procedures such that such Eligible Institution establishes a
         Security Entitlement in favor of the Indenture Trustee with respect
         thereto over which the Indenture Trustee (or such other Eligible
         Institution) has Control.

              (iii) The Servicer shall have the power, revocable by the
         Indenture Trustee or by the Owner Trustee with the consent of the
         Indenture Trustee, to instruct the Indenture Trustee to make
         withdrawals and payments from the Accounts for the purpose of
         permitting the Servicer or the Owner Trustee to carry out its
         respective duties hereunder or permitting the Indenture Trustee to
         carry out its duties under the Indenture.

         Section 4.02. Collections.

         (a) The Servicer shall remit daily to the Collection Account all
payments received from or on behalf of the Obligors on or in respect of the
Receivables (other than, in the case of Precomputed Receivables, payments
constituting Payments Ahead) and all Net Liquidation Proceeds within two
Business Days after receipt thereof.

         (b) Notwithstanding the provisions of Section 4.02(a) and subject to
the conditions set forth below, the Servicer may be permitted to make
remittances of collections on a less frequent basis than that specified in
Section 4.02(a) upon compliance with the specific terms and conditions set forth
below in this Section and for so long as such terms and conditions are
fulfilled. Accordingly, notwithstanding the provisions of Section 4.02(a), the
Servicer will be permitted to remit such collections to the Collection Account
in immediately available funds, on each Deposit Date but only for so long as
(i)(A) the Servicer shall be AHFC, (B) except as provided in clause (ii) below,
the Required Servicer Rating is satisfied and (C) no Servicer Default shall have
occurred and be continuing, provided, however, that immediately following the
non-compliance with clause (B) above or in the event that an event of the nature
specified in Section 7.01(c) has occurred (notwithstanding any period of grace
contained in such clause), the Servicer shall remit such collections to the
Collection Account on a daily basis within two Business Days of receipt thereof,
or (ii)(A) if the conditions specified in clause (i)(A) and (C) above are
satisfied, and (B) the Servicer shall have obtained (1) a Servicer Letter of
Credit issued by a depository institution or insurance company, as the case may
be, having a short-term credit rating at least equal to the Required Deposit
Rating and providing that the Indenture Trustee may draw thereon in the event
that the Servicer fails to deposit collections into the Collection Account on a
monthly basis or (2) a surety bond, insurance policy or other deposit of cash or
securities satisfactory to the Indenture Trustee and each Rating Agency;
provided that in connection with clause (ii) above, the Servicer provides to the
Indenture Trustee, from each Rating Agency for which the Servicer's then-current
short-term credit rating is not at least equal to the Required Servicer Rating
for such Rating Agency, a letter to the effect that the satisfaction of the
conditions in clause (ii) above and allowing the Servicer to make monthly
deposits will not result in a qualification, reduction or withdrawal of its
then-current rating of any Class of Notes and, if applicable, an Officer's
Certificate from the Servicer to the effect that the Servicer's then-current
short-term credit rating is at least equal to the Required Servicer Rating from
each other Rating Agency, if any; and, provided further, that if the Servicer
shall have obtained a Servicer Letter of Credit in accordance with clause (ii)
above, the Servicer shall be required to remit collections to the Collection
Account on each Business Day to the extent that the aggregate amount of
collections described in Section 4.02(a) and received during such Collection
Period

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<PAGE>

exceeds the Servicer Letter of Credit Amount. The Indenture Trustee shall not be
deemed to have knowledge of any event or circumstance under clause (i)(C) above
that would require daily remittance by the Servicer to the Collection Account
unless a Responsible Officer has received notice of such event or circumstance
from the Seller or the Servicer in an Officer's Certificate, from
Securityholders as provided in Section 7.01 or from the Letter of Credit Bank.
For purposes of this Article the phrase "payments made on behalf of Obligors"
shall mean payments made by Persons other than the Seller, the Servicer or the
Letter of Credit Bank, if any.

         Any funds held by the Servicer which it determines are to be remitted
(or any of its own funds which the Seller or the Servicer determines to pay to
the Letter of Credit Bank) in respect of a failure previously to remit
collections which failure resulted in a payment under the Servicer Letter of
Credit, if any, shall not be remitted to the Collection Account, but shall
instead be paid immediately and directly to the Letter of Credit Bank. Any such
payment to the Letter of Credit Bank shall be accompanied by a copy of the
Servicer's Certificate related to the previous failure to remit funds and an
Officer's Certificate which includes a statement identifying, by reference to
the items in such related Servicer's Certificate, each shortfall in Servicer
remittances to which such payment relates. The Servicer will also provide the
Indenture Trustee with copies of each such Servicer's Certificate and Officer's
Certificate delivered with any such payment to the Letter of Credit Bank.

         (c) The Servicer shall deposit all Payments Ahead in the Payahead
Account within two Business Days after receipt thereof, which Payments Ahead
shall be transferred to the Collection Account pursuant to Section 4.06(a)(i).
Notwithstanding the foregoing, so long as the Servicer is permitted to remit
collections to the Collection Account on a monthly basis pursuant to Section
4.02(b), the Servicer will not be required to deposit Payments Ahead in the
Payahead Account within two Business Days after receipt thereof but shall be
entitled to retain such Payments Ahead, without segregation from its other
funds, until such time as the Servicer shall be required to remit Applied
Payments Ahead to the Collection Account pursuant to Section 4.06(a)(ii).
Commencing with the first day of the first Collection Period that begins at
least two Business Days after the day on which the Servicer is no longer
permitted to remit collections to the Collection Account on a monthly basis
pursuant to Section 4.02(b), and until such time as the Servicer is once again
permitted by Section 4.02(b) to remit collections to the Collection Account on a
monthly basis, all Payments Ahead then held by the Servicer shall be immediately
deposited into the Payahead Account and all future Payments Ahead shall be
remitted by the Servicer to the Payahead Account within two Business Days after
receipt thereof.

         Section 4.03. Application of Collections. On each Payment Date, all
collections for the related Collection Period shall be applied by the Servicer
as follows:

         (a) With respect to each Receivable (other than an Administrative
Receivable or a Warranty Receivable), payments made by or on behalf of the
Obligor which are not Supplemental Servicing Fees shall be applied first to
reimburse the Servicer for Outstanding Advances made with respect to such
Receivable (each such payment, an "Overdue Payment"). Next, the amount of any
payment in excess of Supplemental Servicing Fees and Outstanding Advances with
respect to such Receivable shall be applied to the Scheduled Payment with
respect to such Receivable. If the amount of such payment remaining after the
applications described in the two preceding sentences (i) in the case of
Precomputed Receivables equals

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<PAGE>

(together with any Deferred Prepayment) the unpaid principal balance of such
Receivable, it shall be applied to prepay the principal balance of such
Receivable, or (ii) in the case of Simple Interest Receivables, it shall be
applied to prepay the principal balance of such Receivable.

         (b) With respect to each Administrative Receivable and Warranty
Receivable, payments made by or on behalf of the Obligor shall be applied in the
same manner, except that any Released Administrative Amount or Released Warranty
Amount shall be remitted to the Servicer or the Seller, as applicable. A
Warranty Purchase Payment shall be applied to reduce Outstanding Advances and
such Warranty Purchase Payment or an Administrative Purchase Payment, as
applicable, shall then be applied to the Scheduled Payment, in each case to the
extent that the payments by the Obligor shall be insufficient, and then to
prepay the unpaid principal balance of such Receivable in full.

         Section 4.04. Advances.

         (a) As of the close of business on the last day of a Collection Period,
if the payments during such Collection Period by or on behalf of the Obligor on
or in respect of a Receivable (other than an Administrative Receivable or a
Warranty Receivable) after application under Section 4.03(a) shall be less than
the Scheduled Payment, whether as a result of any extension granted to the
Obligor or otherwise, then (i) in the case of a Precomputed Receivable, the
Deferred Prepayment, if any, with respect to such Precomputed Receivable shall
be applied by the Servicer to the extent of the shortfall, and such Deferred
Prepayment shall be reduced accordingly and the Servicer shall advance to the
Trust an amount equal to such shortfall (each, a "Precomputed Advance") and (ii)
in the case of a Simple Interest Receivable, the Servicer shall advance to the
Trust an amount equal to the product of the principal balance of such Receivable
as of the first day of such Collection Period and one-twelfth of its APR minus
the amount of interest actually received on such Receivable during such
Collection Period (each, a "Simple Interest Advance"). If the calculation in
clause (ii) above in respect of a Simple Interest Receivable results in a
negative number, an amount equal to such negative amount shall be paid to the
Servicer in reimbursement of any Outstanding Advances in respect of Simple
Interest Receivables. In addition, in the event that a Simple Interest
Receivable becomes a Liquidated Receivable, the amount of accrued and unpaid
interest thereon (but not including interest for the current Collection Period)
shall, up to the amount of Outstanding Advances in respect of Simple Interest
Receivables in respect thereof, be withdrawn from the Collection Account and
paid to the Servicer in reimbursement of such Outstanding Advances. No Advances
will be made with respect to the Principal Balance of Simple Interest
Receivables. Notwithstanding the foregoing, the Servicer shall not be required
to make any Advance (other than a Simple Interest Advance in respect of an
interest shortfall arising from the Prepayment of a Simple Interest Receivable)
to the extent that the Servicer, in its sole discretion, shall determine that
such Advance is unlikely to be recovered from subsequent payments made by or on
behalf of the related Obligor, Liquidation Proceeds, by the Administrative
Purchase Payment or by the Warranty Purchase Payment, in each case, with respect
to such Receivable or otherwise. On each Deposit Date, the Servicer will deposit
into the Collection Account an amount equal to all Advances to be made in
respect of the related Collection Period. The Successor Servicer shall only be
required to make Advances for payments on behalf of Obligors in respect of
Receivables arising on or after the Collection Period in which the (i) Successor
Servicer accepts its appointment or (ii) the Indenture Trustee is automatically
appointed Successor Servicer.

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<PAGE>

         (b) The Servicer shall be entitled to reimbursement for Outstanding
Advances, without interest, with respect to a Receivable from the following
sources with respect to such Receivable: (i) subsequent payments made by or on
behalf of the related Obligor, (ii) Liquidation Proceeds, (iii) the
Administrative Purchase Payment and (iv) the Warranty Purchase Payment.

         (c) To the extent that during any Collection Period any funds described
above in Section 4.04(b) with respect to a Receivable as to which the Servicer
previously has made an unreimbursed Advance are received by the Issuer or the
Servicer, and the Servicer determines that any Outstanding Advances (other than
a Simple Interest Advance in respect of an interest shortfall arising from the
Prepayment of a Simple Interest Receivable) with respect to such Receivable are
unlikely to be recovered from payments made on or with respect to such
Receivable (each, a "Nonrecoverable Advance"), then, on the related Payment
Date, upon the Servicer providing the Seller and the Trustees with an Officer's
Certificate setting forth the basis for its determination of any such
Nonrecoverable Advance, the Indenture Trustee shall promptly remit to the
Servicer from the Collection Account, (i) from Available Interest an amount
equal to the portion of such Nonrecoverable Advance allocable to interest and
(ii) from Available Principal an amount equal to the portion of such
Nonrecoverable Advance allocable to principal, in each case without interest, in
accordance with Section 4.06(c)(i). In lieu of causing the Indenture Trustee to
remit any such amounts or the amounts described in clauses (i) through (iv) in
Section 4.04(b), the Servicer may deduct such amounts from deposits otherwise to
be made into the Collection Account in accordance with Section 4.09.

         Section 4.05. Additional Deposits.

         (a) The following additional deposits shall be made to the Collection
Account one day prior to each Payment Date: (i) the Seller shall remit the
aggregate Warranty Purchase Payments with respect to Warranty Receivables
pursuant to Section 2.04 and (ii) the Servicer shall remit (A) any extension fee
charged in connection with the extension of a Receivable pursuant to Section
3.02, (B) the amount required to be remitted in respect of certain full
Prepayments pursuant to Section 3.03, (C) the aggregate Advances pursuant to
Section 4.04(a), (D) the aggregate Administrative Purchase Payments with respect
to Administrative Receivables pursuant to Section 3.08 and (E) the amount
required upon the optional purchase of all Receivables by the Servicer or any
successor to the Servicer pursuant to Section 8.01.

         (b) All deposits required to be made in respect of a Collection Period
pursuant to this Section by the Seller or the Servicer, as the case may be, may
be made in the form of a single deposit and shall be made in immediately
available funds, on the related Deposit Date.

         Section 4.06. Distributions.

         (a) On each Deposit Date, the Indenture Trustee shall cause to be made
the following transfers and distributions in immediately available funds in the
amounts set forth in the Servicer's Certificate for such Payment Date:

              (i) from the Payahead Account (or directly from the Servicer in
         the case of Payments Ahead held by the Servicer pursuant to Section
         4.02(b) or (c)) to the Collection Account, the aggregate Applied
         Payments Ahead;

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<PAGE>

              (ii) if the Servicer is not permitted to hold Payments Ahead
         pursuant to Section 4.02(b) or (c), from the Collection Account to the
         Payahead Account, the aggregate Payments Ahead for the related
         Collection Period; and

              (iii) from the Yield Supplement Account to the Collection Account,
         an amount equal to the Yield Supplement Withdrawal Amount, if any, for
         such Payment Date.

         (b) On each Determination Date, the Servicer shall calculate all
amounts required to be deposited in the Note Distribution Account and the
Certificate Distribution Account and to make all distributions on the related
Payment Date.

         (c) On each Payment Date, the Servicer shall instruct the Indenture
Trustee in writing (based on the information contained in the Servicer's
Certificate delivered on the related Determination Date pursuant to Section
3.10) to make the following deposits and distributions for receipt by the
Servicer or deposit in the applicable account, to the extent of the Available
Amount, in the following order of priority:

              (i) to the Servicer, Nonrecoverable Advances;

              (ii) to the Servicer, the Total Servicing Fee (including any
         unpaid Total Servicing Fees from one or more prior Collection Periods);

              (iii) to the Indenture Trustee, the Delaware Trustee and the Owner
         Trustee, any accrued and unpaid Trust Fees and Expenses, in each case
         to the extent such fees and expenses have not been previously paid by
         the Servicer, in its capacity as Administrator, until the Notes have
         been paid in full, the annual amount paid to the Trustees out of the
         Available Amount allocation as described in this clause (iii) shall not
         exceed $100,000.00;

              (iv) to the Note Distribution Account, the Note Interest
         Distributable Amount to be distributed to the holders of the Notes at
         their respective Interest Rates;

              (v) to the Note Distribution Account, the Note Principal
         Distributable Amount;

              (vi) to the Reserve Fund, the amount, if any, necessary to
         reinstate the balance in the Reserve Fund up to the Specified Reserve
         Fund Balance;

              (vii) after the Class A-1 Notes have been paid in full, to the
         Certificate Distribution Account, the Certificate Interest
         Distributable Amount to be distributed to Certificateholders;

              (viii) after the Class A-1 Notes have been paid in full, to the
         Certificate Distribution Account, the Certificate Principal
         Distributable Amount;

              (ix) to the Indenture Trustee, the Delaware Trustee and the Owner
         Trustee, any accrued and unpaid Trust Fees and Expenses remaining after
         application of the payments described in clause (iii) above; and

                                       39
<PAGE>

              (x) to the Seller, any Available Amount remaining (after giving
         effect to the reduction in the Available Amount described in clauses
         (i) through (ix) above.

         Notwithstanding that the Notes have been paid in full, the Indenture
Trustee shall continue to maintain the Collection Account hereunder until the
Pool Balance has been reduced to zero.

         Section 4.07. Reserve Fund.

         (a) On the Closing Date, the Seller will deposit the Reserve Fund
Initial Deposit into the Reserve Fund from the net proceeds of the sale of the
Notes. The Reserve Fund shall be the property of the Issuer subject to the
rights of the Indenture Trustee in the Reserve Fund Property.

         (b) In the event that the Note Distributable Amount exceeds the sum of
the amounts deposited into the Note Distribution Account pursuant to Sections
4.06(c)(iv) and (v) on each Payment Date (or, if the Reserve Fund is not
maintained by the Indenture Trustee, on the related Deposit Date), the Indenture
Trustee shall cause an amount equal to the lesser of (A) the amount on deposit
in the Reserve Fund and (B) the amount by which the Note Distributable Amount
exceeds the sum of the amounts in the Note Distribution Account, to be deposited
into the Note Distribution Account in immediately available funds in the amounts
set forth in the Servicer's Certificate for such Payment Date; provided that
such amount shall be applied first, to the payment of interest due on the Notes
to the extent, if any, that the amount deposited pursuant to Section 4.06(c)(iv)
is not sufficient to cover such payment of interest and, second, to the payment
of principal of the Notes.

         (c) On each Payment Date (or, if the Reserve Fund is not maintained by
the Indenture Trustee, on the related Deposit Date), all interest and other
income (net of losses and investment expenses) on funds on deposit in the
Reserve Fund shall upon the written direction of the Servicer, be paid to the
Seller to the extent that the funds therein exceed the Specified Reserve Fund
Balance. Upon any distribution to the Seller of amounts in excess of the
Specified Reserve Fund Balance, the Noteholders will not have any rights in, or
claims to, such amounts.

         Section 4.08. Yield Supplement Account. On the Closing Date, the Seller
will deposit the Yield Supplement Account Deposit to the Yield Supplement
Account from the net proceeds of the sale of the Notes. The Yield Supplement
Account shall be the property of the Issuer subject to the rights of the
Indenture Trustee for the benefit of the Securityholders.

         Section 4.09. Net Deposits. For so long as AHFC shall be the Servicer
and the Seller, the Servicer and the Indenture Trustee may make any remittances
pursuant to this Article net of amounts to be distributed by the applicable
recipient to such remitting party. Nonetheless, each such party shall account in
writing for all of the above described remittances and distributions as if the
amounts were deposited and/or transferred separately.

         Section 4.10. Statements to Securityholders.

         (a) On each Payment Date, the Servicer shall provide to the Owner
Trustee to forward to each Certificateholder of record and to the Indenture
Trustee to forward to each Noteholder of record a statement, based on the
Servicer's Certificate furnished pursuant to

                                       40
<PAGE>

Section 3.10, setting forth at least the following information as to the
Securities, to the extent applicable:

              (i) the amount of such distribution allocable to principal, as
         allocated to each Class of Notes and to the Certificates (stated
         separately for each Class of Notes and the Certificates);

              (ii) the amount of such distribution allocable to interest, as
         allocated to each Class of Notes and to the Certificates (stated
         separately for each Class of Notes and the Certificates);

              (iii) the Yield Supplement Amount, the Yield Supplement Withdrawal
         Amount and the amount on deposit in the Yield Supplement Account after
         giving effect to the distributions made on such Payment Date;

              (iv) the Pool Balance as of the close of business on the last day
         of the related Collection Period, after giving effect to payments
         allocated to principal reported under clause (i) above;

              (v) the Note Distributable Amount, the Certificate Distributable
         Amount and the Available Amount;

              (vi) the Total Servicing Fee paid to the Servicer with respect to
         the related Collection Period;

              (vii) the amount of non-recoverable Advances;

              (viii) total Payments Ahead and the Applied Payments Ahead;

              (ix) the amount of Trust Fees and Expenses;

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

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

              (xii) the Note Pool Factor for each Class of Notes and the
         Certificate Pool Factor, in each case as of such Payment Date;

              (xiii) the balance on deposit in the Reserve Fund on such Payment
         Date, after giving effect to distributions made on the Payment Date, if
         any, and the change in such balance from the immediately preceding
         Payment Date; and

              (xiv) the amount available under the Servicer Letter of Credit, if
         any, and such amount as a percentage of the Pool Balance as of the last
         day of such Collection Period.

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<PAGE>

         Each amount set forth on the Payment Date statement under clauses (i),
(ii), (vi), (x) and (xi) above shall be expressed as a dollar amount per $1,000
of original principal balance of a Note or the Original Certificate Balance of a
Certificate, as the case may be.

         (b) Within the prescribed period of time for tax reporting purposes
after the end of each calendar year during the term of the Issuer, but not later
than the latest date permitted by law, the related Trustee shall mail to each
Person who at any time during such calendar year shall have been a
Securityholder, a statement, prepared by the Servicer, containing certain
information for such calendar year or, in the event such Person shall have been
a Securityholder during a portion of such calendar year, for the applicable
portion of such year, for the purposes of such Securityholder's preparation of
federal income tax returns. In addition, the Servicer shall furnish to the
Trustees for distribution to such Person at such time any other information
necessary under applicable law for the preparation of such income tax returns.

                                  ARTICLE FIVE

                                   THE SELLER

         Section 5.01. Representations of Seller. The Seller makes the following
representations on which the Issuer is deemed to have relied in acquiring the
Receivables. The representations speak as of the execution and delivery of this
Agreement and as of the Closing Date, and shall survive the sale of the
Receivables to the Issuer and the pledge thereof to the Indenture Trustee
pursuant to the Indenture.

              (a) Organization and Good Standing. The Seller has been duly
         organized and is validly existing as a corporation in good standing
         under the laws of the State of California, with power and authority to
         own its properties and to conduct its business as such properties are
         currently owned and such business is presently conducted, and had at
         all relevant times, and has, power, authority and legal right to
         acquire, own and sell the Receivables.

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

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

              (d) Valid Sale; Binding Obligation. This Agreement evidences a
         valid sale, transfer and assignment of the Receivables, enforceable
         against creditors of and purchasers from the Seller, and constitutes a
         legal, valid and binding obligation of the Seller enforceable in
         accordance with its terms, except as enforceability may be subject to

                                       42
<PAGE>

         or limited by bankruptcy, insolvency, reorganization, moratorium or
         other similar laws affecting the enforcement of creditors' rights in
         general and by general principles of equity, regardless of whether such
         enforceability shall be considered in a proceeding in equity or at law.

              (e) No Violation. The execution, delivery and performance by the
         Seller of this Agreement and the consummation of the transactions
         contemplated by this Agreement and the fulfillment of the terms of this
         Agreement does not conflict with, result in any breach of any of the
         terms and provisions of, nor constitute (with or without notice or
         lapse of time) a default under, the articles of incorporation or bylaws
         of the Seller, or conflict with or violate any of the material terms or
         provisions of, or constitute (with or without notice or lapse of time)
         a default under, any indenture, agreement or other instrument to which
         the Seller is a party or by which it shall be bound; nor result in the
         creation or imposition of any Lien upon any of its properties pursuant
         to the terms of any such indenture, agreement or other instrument
         (other than this Agreement); nor violate any law or, to the Seller's
         knowledge, any order, rule or regulation applicable to the Seller of
         any court or of any federal or state regulatory body, administrative
         agency or other governmental instrumentality having jurisdiction over
         the Seller or its properties, which breach, default, conflict, lien or
         violation would have a material adverse effect on the earnings,
         business affairs or business prospects of the Seller.

              (f) No Proceedings. There are no proceedings or investigations
         pending, or to the Seller's knowledge, threatened, before any court,
         regulatory body, administrative agency or other governmental
         instrumentality having jurisdiction over the Seller or its properties:
         (i) asserting the invalidity of this Agreement or any other Basic
         Document, (ii) seeking to prevent the issuance of the Securities or the
         consummation of any of the transactions contemplated by the Basic
         Documents, (iii) seeking any determination or ruling that might
         materially and adversely affect the performance by the Seller of its
         obligations under, or the validity or enforceability of, the Basic
         Documents or the Securities or (iv) relating to the Seller and which
         might adversely affect the federal income tax attributes of the
         Securities.

         Section 5.02. Liability of Seller; Indemnities. The Seller shall be
liable in accordance herewith only to the extent of the obligations specifically
undertaken by the Seller under this Agreement, which obligations shall include
the following:

              (a) The Seller shall indemnify, defend and hold harmless the
         Issuer, the Trustees and the Servicer and any of the officers,
         directors, employees and agents of the Issuer, the Owner Trustee, the
         Delaware Trustee and the Indenture Trustee from and against any taxes
         that may at any time be asserted against any such Person with respect
         to the transactions contemplated herein and in the other Basic
         Documents, including any sales, gross receipts, general corporation,
         tangible personal property, privilege or license taxes (but, in the
         case of the Issuer, not including any taxes asserted with respect to,
         and as of the date of, the sale of the Receivables to the Issuer or the
         issuance and original sale of the Securities, or asserted with respect
         to ownership of the Receivables, or federal or other income taxes
         arising out of distributions on the Securities) and costs and expenses
         in defending against the same.

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<PAGE>

              (b) The Seller shall indemnify, defend and hold harmless the
         Issuer, the Trustees and the Securityholders and any of the officers,
         directors, employees and agents of the Issuer, the Owner Trustee, the
         Delaware Trustee and the Indenture Trustee from and against any loss,
         liability or expense incurred by reason of (i) the Seller's willful
         misfeasance, bad faith or negligence in the performance of its duties
         under this Agreement, or by reason of reckless disregard of its
         obligations and duties under this Agreement and (ii) the Seller's or
         the Issuer's violation of federal or state securities laws in
         connection with the offering and sale of the Securities.

              (c) The Seller shall indemnify, defend and hold harmless the
         Trustees and their respective officers, directors, employees and agents
         from and against all costs, expenses, losses, claims, damages and
         liabilities arising out of or incurred in connection with the
         acceptance or performance of the trusts and duties herein and contained
         in the Trust Agreement, in the case of the Owner Trustee and the
         Delaware Trustee, and contained in the Indenture, in the case of the
         Indenture Trustee, except to the extent that such cost, expense, loss,
         claim, damage or liability: (i) in the case of the Owner Trustee, shall
         be due to the willful misfeasance, bad faith or gross negligence
         (except for errors in judgment) of the Owner Trustee or shall arise
         from the breach by the Owner Trustee of any of its representations or
         warranties set forth in Section 7.03 of the Trust Agreement, (ii) in
         the case of the Indenture Trustee, shall be due to the willful
         misfeasance, bad faith or negligence of the Indenture Trustee, or (iii)
         in the case of the Delaware Trustee, shall be due to the willful
         misfeasance, bad faith or gross negligence of the Delaware Trustee
         (except for errors in judgment).

              (d) The Seller shall pay any and all taxes levied or assessed upon
         all or any part of the Owner Trust Estate.

         Indemnification under this Section shall survive the resignation or
removal of the Owner Trustee, the Delaware Trustee or the Indenture Trustee, as
the case may be, and the termination of this Agreement and shall include
reasonable fees and expenses of counsel and expenses of litigation. If the
Seller shall have made any indemnity payments pursuant to this Section and the
Person to or on behalf of whom such payments are made thereafter shall collect
any of such amounts from others, such Person shall promptly repay such amounts
to the Seller, without interest.

         Section 5.03. Merger, Consolidation or Assumption of the Obligations of
Seller; Certain Limitations.

         (a) Any corporation (i) into which the Seller may be merged or
consolidated, (ii) which may result from any merger, conversion or consolidation
to which the Seller shall be a party or (iii) which may succeed to all or
substantially all of the business of the Seller, which corporation in any of the
foregoing cases executes an agreement of assumption to perform every obligation
of the Seller under this Agreement, shall be the successor to the Seller under
this Agreement without the execution or filing of any document or any further
act on the part of any of the parties to this Agreement, except that if the
Seller in any of the foregoing cases is not the surviving entity, then the
surviving entity shall execute an agreement of assumption to perform every
obligation of the Seller hereunder. The Seller shall provide notice of any
merger,

                                       44
<PAGE>

consolidation or succession pursuant to this Section to each Rating Agency and
shall receive from each Rating Agency a letter to the effect that such merger,
consolidation or succession will not result in a qualification, downgrading or
withdrawal of its then-current rating of any Class of Notes.

         (b) (i) Subject to paragraph (ii) below, the purpose of the Seller
shall be to engage in any lawful activity for which a corporation may be
organized under the general corporation law of California other than the banking
business, the trust company business or the practice of a profession permitted
to be incorporated by the California Corporations Code.

            (ii) Notwithstanding paragraph (b)(i) above, the purpose of the
         Seller shall be limited to the following purposes, and activities
         incident to and necessary or convenient to accomplish the following
         purposes: (A) to acquire, own, hold, sell, transfer, assign, pledge,
         finance, refinance and otherwise deal with, retail installment
         contracts or wholesale loans secured by, new and used Honda and Acura
         motor vehicles (the "Motor Vehicle Receivables"); (B) to authorize,
         issue, sell and deliver one or more series of obligations, consisting
         of one or more classes of certificates and/or notes or other evidence
         of indebtedness (the "Offered Securities") that are collateralized by
         or evidence an interest in Motor Vehicle Receivables; and (C) to
         negotiate, authorize, execute, deliver and assume the obligations or
         any agreement relating to the activities set forth in clauses (A) and
         (B) above, including but not limited to any pooling and servicing
         agreement, sale and servicing agreement, indenture, reimbursement
         agreement, credit support agreement, receivables purchase agreement or
         underwriting agreement and to engage in any lawful activity which is
         incidental to the activities contemplated by any such agreement. So
         long as any outstanding debt of the Seller or Offered Securities are
         rated by any nationally recognized statistical rating organization, the
         Seller shall not issue notes or otherwise borrow money unless (1) the
         Seller has made a written request to the related nationally recognized
         statistical rating organization to issue notes or incur borrowings,
         which notes or borrowings are rated by the related nationally
         recognized statistical rating organization the same as or higher than
         the rating afforded any outstanding rated debt or Offered Securities,
         or (2) such notes or borrowings (X) are fully subordinated (and which
         shall provide for payment only after payment in respect of all
         outstanding rated debt and/or Offered Securities) or are nonrecourse
         against any assets of the Seller other than the assets pledged to
         secure such notes or borrowings, (Y) do not constitute a claim against
         the Seller in the event such assets are insufficient to pay such notes
         or borrowings and (Z) where such notes or borrowings are secured by the
         rated debt or Offered Securities, are fully subordinated (and which
         shall provide for payment only after payment in respect of all
         outstanding rated debt and/or Offered Securities) to such rated debt or
         Offered Securities.

         (c) Notwithstanding any other provision of this Section and any
provision of law, the Seller shall not do any of the following:

              (i) engage in any business or activity other than as set forth in
         clause (b) above;

                                       45
<PAGE>

              (ii) without the affirmative vote of a majority of the members of
         the Board of Directors of the Seller (which must include the
         affirmative vote of all duly appointed Independent Directors, as
         required by the articles of incorporation and bylaws of the Seller),
         (A) dissolve or liquidate, in whole or in part, or institute
         proceedings to be adjudicated bankrupt or insolvent, (B) consent to the
         institution of bankruptcy or insolvency proceedings against it, (C)
         file a petition seeking or consent to reorganization or relief under
         any applicable federal or state law relating to bankruptcy, (D) consent
         to the appointment of a receiver, liquidator, assignee, trustee,
         sequestrator or other similar official of the corporation or a
         substantial part of its property, (E) make a general assignment for the
         benefit of creditors, (F) admit in writing its inability to pay its
         debts generally as they become due or (G) take any corporate action in
         furtherance of the actions set forth in clauses (A) through (F) above;
         provided, however, that no director may be required by any shareholder
         of the Seller to consent to the institution of bankruptcy or insolvency
         proceedings against the Seller so long as it is solvent; or

              (iii) merge or consolidate with any other corporation, company or
         entity or sell all or substantially all of its assets or acquire all or
         substantially all of the assets or capital stock or other ownership
         interest of any other corporation, company or entity (except for the
         acquisition of Motor Vehicle Receivables of AHFC and the sale of Motor
         Vehicle Receivables to one or more trusts in accordance with the terms
         of clause (b)(ii) above, which shall not be otherwise restricted by
         this Section).

         Section 5.04. Limitation on Liability of Seller and Others. The Seller
and any director, officer, employee or agent of the Seller may rely in good
faith on the advice of counsel or on any document of any kind, prima facie
properly executed and submitted by any Person respecting any matters arising
hereunder. The Seller shall not be under any obligation to appear in, prosecute
or defend any legal action that shall not be incidental to its obligations under
this Agreement, and that in its opinion may involve it in any expense or
liability.

         Section 5.05. Seller May Own Notes. The Seller and any Affiliate
thereof may in its individual or any other capacity become the owner or pledgee
of Notes with the same rights as it would have if it were not the Seller or an
Affiliate thereof, except as expressly provided herein or in any other Basic
Document.

                                  ARTICLE SIX

                                  THE SERVICER

         Section 6.01. Representations of Servicer. The Servicer makes the
following representations on which the Issuer is deemed to have relied in
acquiring the Receivables. The representations speak as of the execution and
delivery of this Agreement and as of the Closing Date, and shall survive the
sale of the Receivables to the Issuer and the pledge thereof to the Indenture
Trustee pursuant to the Indenture:

         (a) Organization and Good Standing. The Servicer has been duly
organized and is validly existing as a corporation in good standing under the
laws of the State of California, with power and authority to own its properties
and to conduct its business as such properties are

                                       46
<PAGE>

currently owned and such business is presently conducted, and had at all
relevant times, and has, power, authority and legal right to acquire, own, sell
and service the Receivables and to hold the Receivable Files as custodian on
behalf of the Issuer.

         (b) Due Qualification. The Servicer is duly qualified to do business as
a foreign corporation in good standing, and has obtained all necessary licenses
and approvals in all jurisdictions in which the ownership or lease of property
or the conduct of its business (including the servicing of the Receivables as
required by this Agreement) shall require such qualifications.

         (c) Power and Authority. The Servicer has the power and authority to
execute and deliver this Agreement and to carry out its terms; and the
execution, delivery and performance of this Agreement has been duly authorized
by the Servicer by all necessary corporate action.

         (d) Binding Obligation. This Agreement constitutes a legal, valid and
binding obligation of the Servicer enforceable in accordance with its terms,
except as enforceability may be subject to or limited by bankruptcy, insolvency,
reorganization, moratorium, liquidation or other similar laws affecting the
enforcement of creditors' rights in general and by general principles of equity,
regardless of whether such enforceability shall be considered in a proceeding in
equity or in law.

         (e) No Violation. The execution, delivery and performance by the
Servicer of this Agreement and the execution, delivery and performance by the
Seller of this Agreement and the consummation of the transactions contemplated
by this Agreement and the fulfillment of the terms of this Agreement shall not
conflict with, result in any breach of any of the terms and provisions of, nor
constitute (with or without notice or lapse of time) a default under, the
articles of incorporation or bylaws of the Servicer, or conflict with or breach
any of the material terms or provisions of, or constitute (with or without
notice or lapse of time) a default under, any indenture, agreement or other
instrument to which the Servicer is a party or by which it shall be bound; nor
result in the creation or imposition of any Lien upon any of its properties
pursuant to the terms of any such indenture, agreement or other instrument
(other than this Agreement); nor violate any law or, to the Servicer's
knowledge, any order, rule or regulation applicable to the Servicer of any court
or of any federal or state regulatory body, administrative agency or other
governmental instrumentality having jurisdiction over the Servicer or its
properties, which breach, default, conflict, lien or violation would have a
material adverse effect on the earnings, business affairs or business prospects
of the Servicer.

         (f) No Proceedings. There are no proceedings or investigations pending,
or to the Servicer's best knowledge, threatened, before any court, regulatory
body, administrative agency or other governmental instrumentality having
jurisdiction over the Servicer or its properties: (i) asserting the invalidity
of this Agreement or any other Basic Document, (ii) seeking to prevent the
issuance of the Securities or the consummation of any of the transactions
contemplated by the Basic Documents, (iii) seeking any determination or ruling
that might materially and adversely affect the performance by the Servicer of
its obligations under, or the validity or enforceability of, the Basic Documents
or the Securities or (iv) relating to the Servicer and which might adversely
affect the federal income tax attributes of the Securities.

         Section 6.02. Indemnities of Servicer.

                                       47
<PAGE>

         (a) The Servicer shall be liable in accordance herewith only to the
extent of the obligations specifically undertaken by the Servicer under this
Agreement. In this regard, the Servicer shall indemnify, defend and hold
harmless the Issuer, the Trustees, the Securityholders and the Seller and any of
the officers, directors, employees and agents of the Issuer, the Owner Trustee,
the Delaware Trustee and the Indenture Trustee from and against any and all
costs, expenses, losses, damages, claims and liabilities (i) arising out of or
resulting from the use, ownership or operation by the Servicer or any Affiliate
thereof of a Financed Vehicle, and (ii) to the extent that such cost, expense,
loss, claim, damage or liability arose out of, or was imposed upon any such
Person through, the negligence, willful misfeasance or bad faith of the Servicer
in the performance of its duties under this Agreement or by reason of reckless
disregard of its obligations and duties under this Agreement.

         For purposes of this Section, in the event of the termination of the
rights and obligations of AHFC (or any successor thereto pursuant to Section
6.03) as Servicer pursuant to Section 7.01, or a resignation by such Servicer
pursuant to this Agreement, such Servicer shall be deemed to be the Servicer
pending appointment of a Successor Servicer (other than the Indenture Trustee)
pursuant to Section 7.02. For the avoidance of doubt, AHFC shall not be liable
for any claims described in the first sentence of this Section which relate to a
date or period on or after the date on which AHFC is terminated or removed as
the Servicer or which are cause by a successor servicer.

         (b) Indemnification under this Section shall survive the resignation or
removal of the Owner Trustee, the Delaware Trustee or the Indenture Trustee, as
the case may be, or the termination of this Agreement and shall include
reasonable fees and expenses of counsel and expenses of litigation. If the
Servicer shall have made any indemnity payments pursuant to this Section and the
Person to or on behalf of whom such payments are made thereafter collects any of
such amounts from others, such Person shall promptly repay such amounts to the
Servicer, without interest.

         Section 6.03. Merger, Consolidation or Assumption of the Obligations of
Servicer. Any corporation (i) into which the Servicer may be merged or
consolidated, (ii) which may result from any merger, conversion or consolidation
to which the Servicer shall be a party or (iii) which may succeed to all or
substantially all of the business of the Servicer, which corporation in any of
the foregoing cases executes an agreement of assumption to perform every
obligation of the Servicer under this Agreement, shall be the successor to the
Servicer under this Agreement without the execution or filing of any paper or
any further act on the part of any of the parties to this Agreement. The
Servicer shall provide notice of any merger, consolidation or succession
pursuant to this Section to the Trustees and each Rating Agency.

         Section 6.04. Limitation on Liability of Servicer and Others. Neither
the Servicer nor any of the directors, officers, employees or agents of the
Servicer shall be under any liability to the Issuer or any Securityholder,
except as provided under this Agreement, for any action taken or for refraining
from the taking of any action pursuant to this Agreement or for errors in
judgment; provided, however, that this provision shall not protect the Servicer
or any such person against any liability that would otherwise be imposed by
reason of willful misfeasance, bad faith or negligence in the performance of
duties or by reason of reckless disregard of obligations and duties under this
Agreement. The Servicer and any director, officer, employee or

                                       48
<PAGE>

agent of the Servicer may rely in good faith on any document of any kind prima
facie properly executed and submitted by any Person respecting any matters
arising under this Agreement.

         Except as otherwise provided in this Agreement, the Servicer shall not
be under any obligation to appear in, prosecute or defend any legal action that
shall not be incidental to its duties to service the Receivables in accordance
with this Agreement and that in its opinion may involve it in any expense or
liability; provided, however, that the Servicer may undertake any reasonable
action that it may deem necessary or desirable in respect of this Agreement and
the other Basic Documents and the rights and duties of the parties to this
Agreement and the other Basic Documents and the interests of the
Certificateholders under this Agreement and the Noteholders under the Indenture.
The legal expenses and costs of such action and any liability resulting
therefrom will be expenses, costs and liabilities of the Issuer.

         Section 6.05 AHFC Not to Resign as Servicer. Subject to the provisions
of Section 6.03, AHFC shall not resign from the obligations and duties hereby
imposed on it as Servicer under this Agreement except upon a determination that
the performance of its duties under this Agreement shall no longer be
permissible under applicable law. Notice of any such determination permitting
the resignation of AHFC shall be communicated to the Trustees at the earliest
practicable time (and, if such communication is not in writing, shall be
confirmed in writing at the earliest practicable time) and any such
determination shall be evidenced by an Opinion of Counsel to such effect
delivered to the Trustees concurrently with or promptly after such notice. No
such resignation shall become effective until the Indenture Trustee or a
Successor Servicer shall have (i) assumed the responsibilities and obligations
of AHFC in accordance with Section 7.02 and (ii) become the Administrator
pursuant to Section 1.09 of the Administration Agreement.

                                 ARTICLE SEVEN

                                SERVICER DEFAULTS

         Section 7.01. Servicer Defaults. If any one of the following events
(each, a "Servicer Default") shall occur and be continuing:

              (a) any failure by the Servicer to deliver to the related Trustee
         for deposit in any of the Accounts or the Certificate Distribution
         Account any required payment or to direct the Indenture Trustee to make
         any required distributions therefrom, which failure continues
         unremedied for a period of three Business Days after discovery of such
         failure by an officer of the Servicer or after the date on which
         written notice of such failure, requiring the same to be remedied,
         shall have been given (i) to the Servicer by the related Trustee or
         (ii) to the Servicer and to the Trustees by the Holders of Notes,
         evidencing not less than 25% of the Outstanding Amount of the Notes;

              (b) failure by the Servicer (or so long as the Servicer is AHFC,
         the Seller) duly to observe or to perform in any material respect any
         other covenants or agreements of the Servicer (or so long as the
         Servicer is AHFC, the Seller) set forth in this Agreement or any other
         Basic Document, which failure shall (i) materially and adversely affect
         the rights of Certificateholders or Noteholders and (ii) continue
         unremedied for a

                                       49
<PAGE>

         period of 90 days after the date on which written notice of such
         failure, requiring the same to be remedied, shall have been given (A)
         to the Servicer or the Seller (as the case may be) by the related
         Trustee or (B) to the Servicer or the Seller (as the case may be), and
         to the related Trustee by the Holders of Notes, evidencing not less
         than 25% of the Outstanding Amount of the Notes; or

              (c) the occurrence of an Insolvency Event with respect to the
         Seller or the Servicer;

then, and in each and every case, so long as the Servicer Default shall not have
been remedied, either the Indenture Trustee or the Holders of Notes evidencing
not less than 25% of the Outstanding Amount of the Notes (or, if the Notes have
been paid in full and the Indenture has been discharged in accordance with its
terms, by holders of Certificates evidencing not less than 25% of the Percentage
Interests) by notice then given in writing to the Servicer (and to the Indenture
Trustee and the Owner Trustee if given by the Noteholders) may terminate all the
rights and obligations (other than the obligations set forth in Section 6.02
that accrued on or prior to the effective date of the termination) of the
Servicer under this Agreement. On or after the date specified in such written
notice, all authority and power of the Servicer under this Agreement, whether
with respect to the Notes, the Certificates or the Receivables or otherwise,
shall, without further action, pass to and be vested in the Indenture Trustee or
such Successor Servicer as may be appointed under Section 7.02; and, without
limitation, the Indenture Trustee and the Owner Trustee are hereby authorized
and empowered to execute and deliver, for the benefit of the predecessor
Servicer, as attorney-in-fact or otherwise, any and all documents and other
instruments, and to do or accomplish all other acts or things necessary or
appropriate to effect the purposes of such notice of termination, whether to
complete the transfer and endorsement of the Receivables and related documents,
or otherwise. The predecessor Servicer shall cooperate with the Successor
Servicer and the Trustees in effecting the termination of the responsibilities
and rights of the predecessor Servicer under this Agreement, including the
transfer to the Successor Servicer for administration by it of all cash amounts
that shall at the time be held by the predecessor Servicer for deposit, or have
been deposited by the predecessor Servicer, in the Accounts or the Certificate
Distribution Account or thereafter received with respect to the Receivables and
all Payments Ahead that shall at that time by held by the predecessor Servicer.
All reasonable costs and expenses (including servicer conversion costs and
attorneys' fees) incurred in connection with transferring the Receivable Files
to the Successor Servicer and amending this Agreement to reflect such succession
as Servicer pursuant to this Section shall be paid by the predecessor Servicer
upon presentation of reasonable documentation of such costs and expenses. Any
costs or expenses incurred in connection with a Servicer Default shall
constitute an expense of administration under Title 11 of the United States
Bankruptcy Code or any other applicable Federal or State bankruptcy laws. Upon
receipt of notice of the occurrence of a Servicer Default, the Indenture Trustee
shall give notice thereof to each Rating Agency.

         Section 7.02. Appointment of Successor Servicer.

         (a) Upon the Servicer's receipt of notice of termination pursuant to
Section 7.01 or the Servicer's resignation pursuant to Section 6.05, the
predecessor Servicer shall continue to perform its functions as Servicer under
this Agreement, in the case of termination, only until the

                                       50
<PAGE>

date specified in such termination notice or, if no such date is specified in a
notice of termination, until receipt of such notice and, in the case of
resignation, until the later of (i) the date 45 days from the delivery to the
Trustees of written notice of such resignation (or written confirmation of such
notice) in accordance with the terms of this Agreement and (ii) the date upon
which the predecessor Servicer shall become unable to act as Servicer, as
specified in the notice of resignation and accompanying Opinion of Counsel. In
the event of the Servicer's termination hereunder, the Indenture Trustee shall
appoint a Successor Servicer, and the Successor Servicer shall accept its
appointment (including its appointment as Administrator under the Administration
Agreement as set forth in Section 7.02(b)) by a written assumption in form
acceptable to the Trustees. In the event that a Successor Servicer has not been
appointed at the time when the predecessor Servicer has ceased to act as
Servicer in accordance with this Section, the Indenture Trustee without further
action shall automatically be appointed the Successor Servicer and the Indenture
Trustee shall be entitled to receive the Total Servicing Fee. Notwithstanding
the above, the Indenture Trustee shall, if it shall be legally unable or
unwilling so to act, appoint or petition a court of competent jurisdiction to
appoint any established institution, having a net worth of not less than
$50,000,000 and whose regular business shall include the servicing of motor
vehicle receivables, as the successor to the Servicer under this Agreement. In
no event shall the Successor Servicer be liable for the acts or omissions of any
predecessor Servicer.

         (b) Upon appointment, the Successor Servicer (including the Indenture
Trustee acting as Successor Servicer) shall (i) be the successor in all respects
to the predecessor Servicer and shall be subject to all the responsibilities,
duties and liabilities arising thereafter relating thereto placed on the
predecessor Servicer and shall be entitled to the Total Servicing Fee and all
the rights granted to the predecessor Servicer by the terms and provisions of
this Agreement and (ii) become the Administrator pursuant to Section 1.09 of the
Administration Agreement.

         Section 7.03. Notification of Servicer Termination. Upon any
termination of, or appointment of a successor to, the Servicer pursuant to this
Article, the Owner Trustee shall give prompt written notice thereof to
Certificateholders, and the Indenture Trustee shall give prompt written notice
thereof to Noteholders and each Rating Agency.

         Section 7.04. Waiver of Past Defaults. The Holders of Notes evidencing
not less than a majority of the Outstanding Amount of the Notes or the Holders
(as defined in the Trust Agreement) of Certificates evidencing not less than a
majority of the Percentage Interests (in the case of a default by the Servicer
that does not adversely affect the Indenture Trustee or the Noteholders or if
all Notes have been paid in full and the Indenture Trustee has been discharged
in accordance with its terms) may, on behalf of all Securityholders waive in
writing any default by the Servicer in the performance of its obligations
hereunder and its consequences, except a default in making any required deposits
to or payments from any of the Accounts or the Certificate Distribution Account
in accordance with this Agreement or in respect of a covenant or provision
hereof that cannot be modified with the consent of each Securityholder. Upon any
such waiver of a past default, such default shall cease to exist, and any
Servicer Default arising therefrom shall be deemed to have been remedied for
every purpose of this Agreement. No such waiver shall extend to any subsequent
or other default or impair any right consequent thereto except to the extent
expressly so waived.

                                       51
<PAGE>

         Section 7.05. Repayment of Advances. If a Successor Servicer replaces
the Servicer, the predecessor Servicer shall be entitled to receive
reimbursement for all outstanding Advances made by the predecessor Servicer.

                                 ARTICLE EIGHT

                                  TERMINATION

         Section 8.01. Optional Purchase of All Receivables.

         (a) On the Payment Date following the last day of any Collection Period
as of which the Pool Balance is 10% or less of the Original Pool Balance, the
Servicer or any successor to the Servicer shall have the option to purchase the
Owner Trust Estate, other than the Accounts and the Certificate Distribution
Account. To exercise such option, on the related Deposit Date the Servicer shall
deposit pursuant to Section 4.05(a) in the Collection Account an amount equal to
the aggregate Administrative Purchase Payments for the Receivables (including
Defaulted Receivables), and shall succeed to all interests in and to the Issuer.
Notwithstanding the foregoing, the Servicer or any successor to the Servicer
shall not be permitted to exercise such option if the amount to be distributed
to Securityholders on the related Payment Date would be less than the Note
Distributable Amount and Certificate Distributable Amount.

         (b) As described in Article Nine of the Trust Agreement, notice of any
termination of the Trust shall be given by the Servicer to the Owner Trustee and
the Indenture Trustee as soon as practicable after the Servicer has received
notice thereof.

         (c) Following the satisfaction and discharge of the Indenture and the
payment in full of the principal of and interest on the Notes, the
Certificateholders will succeed to the rights of the Noteholders hereunder and
the Owner Trustee will succeed to the rights of the Indenture Trustee pursuant
to this Agreement.

                                  ARTICLE NINE

                                  MISCELLANEOUS

         Section 9.01. Amendment.

         (a) This Agreement may be amended by the Seller, the Servicer and the
Issuer, with the consent of the Indenture Trustee, but without the consent of
any Securityholders, (i) to cure any ambiguity, to correct or supplement any
provision in this Agreement which may be inconsistent with any other provision
of this Agreement, to add, change or eliminate any other provision of this
Agreement with respect to matters or questions arising under this Agreement that
shall not be inconsistent with the provisions of this Agreement, (ii) to change
the formula for determining the Specified Reserve Fund Balance or the manner in
which the Reserve Fund is funded or to amend or modify any provisions of this
Agreement relating to the remittance schedule with respect to collections
deposited into the Collection Account or the Payahead Account pursuant to
Section 4.02 or (iii) to amend or modify any provisions in this Agreement
relating to the Servicer Letter of Credit, if any, or the acquisition thereof
and including replacing the Servicer Letter of Credit with a surety bond,
insurance policy or deposit of cash or securities

                                       52
<PAGE>

satisfactory to the Indenture Trustee and each Rating Agency; provided, however,
that in connection with any amendment pursuant to clause (i) above, any such
action shall not, as evidenced by an Opinion of Counsel, adversely affect in any
material respect the interests of any Securityholder and provided, further, that
in connection with any amendment pursuant to clause (ii) or (iii) above, the
Servicer shall deliver to the Trustees a letter from each Rating Agency to the
effect that such amendment will not cause its then-current rating on the Rated
Securities to be qualified, reduced or withdrawn.

         (b) This Agreement may also be amended from time to time by the Seller,
the Servicer and the Issuer, with the consent of the Indenture Trustee, the
written consent of the Holders of Notes evidencing not less than a majority of
the Outstanding Amount of the Notes and the Owner Trustee, consent of the
Holders (as defined in the Trust Agreement) of outstanding Certificates
evidencing not less than a majority of the Percentage Interests, for the purpose
of adding any provisions to or changing in any manner or eliminating any of the
provisions of this Agreement or of modifying in any manner the rights of the
Securityholders; provided, however, that no such amendment shall (i) except as
otherwise provided in Section 9.01 (a) increase or reduce in any manner the
amount of, or accelerate or delay the timing of, collections of payments on
Receivables or distributions that shall be required to be made for the benefit
of the Securityholders or (ii) reduce the aforesaid percentage of the
Outstanding Amount of the Notes and the Percentage Interests, the Holders of
which are required to consent to any such amendment, without the written consent
of all of the Securityholders.

         (c) Promptly after the execution of any such amendment or consent, the
Owner Trustee shall furnish written notification of the substance of such
amendment or consent to each Certificateholder, the Indenture Trustee and each
Rating Agency. It shall not be necessary for the consent of Securityholders
pursuant to this Section to approve the particular form of any proposed
amendment or consent, but it shall be sufficient if such consent shall approve
the substance thereof. The manner of obtaining such consents and of evidencing
the authorization of Certificateholders of the execution thereof shall be
subject to such reasonable requirements as the Owner Trustee may require.

         (d) Prior to the execution of any amendment to this Agreement, the
Trustees shall be entitled to receive and rely upon an Opinion of Counsel
stating that the execution of such amendment is authorized or permitted by this
Agreement and the Opinion of Counsel referred to in Section 9.02(i)(1). The
Trustees may, but shall not be obligated to, enter into any such amendment which
affects the Owner Trustee's or the Indenture Trustee's, as applicable, own
rights, duties or immunities under this Agreement or otherwise.

         Section 9.02. Protection of Title to Trust.

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

                                       53
<PAGE>

         (b) Neither the Seller nor the Servicer shall change its name, identity
or corporate structure in any manner that would, could or might make any
financing statement or continuation statement filed in accordance with Section
9.02(a) seriously misleading within the meaning of Section 9-507(c) of the UCC,
unless it shall have given the Trustees at least 30 days' prior written notice
thereof and shall, within 30 days of such change, execute and file the
appropriate amendments to all previously filed financing statements or
continuation statements.

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

         (d) The Servicer shall maintain accounts and records as to each
Receivable accurately and in sufficient detail to permit (i) the reader thereof
to know at any time the status of such Receivable, including payments and
recoveries made and payments owing (and the nature of each) and (ii)
reconciliation between payments or recoveries on (or with respect to) each
Receivable and the amounts from time to time deposited in the Accounts and any
Payments Ahead held by the Servicer in respect of such Receivable.

         (e) The Servicer shall maintain its computer systems so that, from and
after the time of sale under this Agreement of the Receivables, the Servicer's
master computer records (including any backup archives) that refer to a
Receivable shall indicate clearly the interest of the Issuer and the Indenture
Trustee in such Receivable and that such Receivable is owned by the Issuer and
has been pledged to the Indenture Trustee. Indication of the Issuer's and the
Indenture Trustee's interest in a Receivable shall be deleted from or modified
on the Servicer's computer systems when, and only when, the related Receivable
shall have been paid in full or repurchased.

         (f) If at any time the Seller or the Servicer shall propose to sell,
grant a security interest in, or otherwise transfer any interest in motor
vehicle receivables to any prospective purchaser, lender or other transferee,
the Servicer shall give to such prospective purchaser, lender or other
transferee computer tapes, records or printouts (including any restored from
backup archives) that, if they shall refer in any manner whatsoever to any
Receivable, shall indicate clearly that such Receivable has been sold and is
owned by the Issuer and has been pledged to the Indenture Trustee.

         (g) The Servicer shall permit the Indenture Trustee and its agents at
any time during normal business hours to inspect, audit and make copies of and
abstracts from the Servicer's records regarding any Receivable.

         (h) Upon request, the Servicer shall furnish to the Owner Trustee or to
the Indenture Trustee, within five Business Days, a list of all Receivables (by
contract number and name of Obligor) then held as part of the Issuer, together
with a reconciliation of such list to the Schedule

                                       54
<PAGE>

of Receivables and to each of the Servicer's Certificates furnished before such
request indicating removal of Receivables from the Issuer.

         (i) The Servicer shall deliver to the Trustees:

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

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

         Each Opinion of Counsel referred to in clause (1) or (2) above shall
specify any action necessary (as of the date of such opinion) to be taken in the
following year to preserve and protect such interest.

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

         Section 9.03. Notices. All demands, notices and communications under
this Agreement shall be in writing, personally delivered or mailed by certified
mail, return receipt requested, and shall be deemed to have been duly given upon
receipt (i) in the case of the Seller, to CT Corp., 818 West 7th Street, Second
Floor, Los Angeles, California 90017, (ii) in the case of the Servicer, to
American Honda Finance Corporation, 700 Van Ness Avenue, Building 300, Torrance,
CA 90501, Attention: President, (iii) in the case of the Issuer or the Owner
Trustee, at the Corporate Trust Office (as such term is defined in the Trust
Agreement), (iv) in the case of the Indenture Trustee, at the Corporate Trust
Office (as such term is herein defined), (v) in the case of Moody's, to Moody's
Investors Service, Inc., ABS Monitoring Department, 99 Church Street, New York,
New York 10007, (vi) in the case of Standard & Poor's, to Standard & Poor's
Ratings Services, a division of The McGraw-Hill Companies, Inc., 55 Water
Street, New York, New York 10041, Attention: Asset Backed Surveillance
Department, (vii) in the case of Fitch, to Fitch, Inc., One State Street Plaza,
New York, New York 10004, Attention: Asset Backed Surveillance Department or
(viii) as to each of the foregoing, at such other address as shall be designated
by written notice to the other parties.

         Section 9.04. Assignment.

                                       55
<PAGE>

         (a) Notwithstanding anything to the contrary contained herein, except
as provided in the remainder of this Section, as provided in Sections 5.03, 6.03
and 6.05, this Agreement may not be assigned by the Seller or the Servicer
without the prior written consent of Holders of Notes evidencing not less than a
majority of the Outstanding Amount of the Notes and Holders (as such term is
defined in the Trust Agreement) of Certificates evidencing not less than a
majority of the Percentage Interests. And as provided in the provisions of this
Agreement concerning the resignation of the Servicer, this Agreement may not be
assigned by the Seller or the Servicer.

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

         Section 9.05. Limitations on Rights of Others. The provisions of this
Agreement are solely for the benefit of the Seller, the Servicer, the Issuer,
the Owner Trustee, the Certificateholders, the Indenture Trustee and the
Noteholders, and nothing in this Agreement, whether express or implied, shall be
construed to give to any other Person any legal or equitable right, remedy or
claim in the Owner Trust Estate or under or in respect of this Agreement or any
covenants, conditions or provisions contained herein. The Owner Trustee and the
Delaware Trustee are third-party beneficiaries of Sections 2.07, 5.02 and 6.02
of this Agreement and is entitled to the rights and benefits thereof and may
enforce the provisions as if it were a party hereto.

         Section 9.06. Severability. If any one or more of the covenants,
agreements, provisions or terms of this Agreement shall be for any reason
whatsoever held invalid, then such covenants, agreements, provisions or terms
shall be deemed severable from the remaining covenants, agreements, provisions
or terms of this Agreement and shall in no way affect the validity or
enforceability of the other covenants, agreements, provisions or terms of this
Agreement.

         Section 9.07. Separate Counterparts. This Agreement may be executed by
the parties hereto in separate counterparts, each of which when so executed and
delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument.

         Section 9.08. Headings. The headings of the various Articles and
Sections herein are for convenience of reference only and shall not define or
limit any of the terms or provisions hereof.

         Section 9.09. Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS, EXCEPT THAT
THE DUTIES, RIGHTS AND PROTECTIONS OF EACH OF THE OWNER TRUSTEE AND THE
INDENTURE TRUSTEE SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

                                       56
<PAGE>

         Section 9.10. Nonpetition Covenants.

         (a) Notwithstanding any prior termination of this Agreement, the
Servicer and the Seller shall not, prior to the date which is one year and one
day after the termination of this Agreement with respect to the Issuer,
acquiesce, petition or otherwise invoke or cause the Issuer to invoke the
process of any court or government authority for the purpose of commencing or
sustaining a case against the Issuer under any federal or state bankruptcy,
insolvency or similar law, or appointing a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of the Issuer or any
substantial part of its property, or ordering the winding up or liquidation of
the affairs of the Issuer.

         (b) Notwithstanding any prior termination of this Agreement, the
Servicer shall not, prior to the date which is one year and one day after the
termination of this Agreement with respect to the Seller, acquiesce, petition or
otherwise invoke or cause the Seller to invoke the process of any court or
government authority for the purpose of commencing or sustaining a case against
the Seller under any federal or state bankruptcy, insolvency or similar law, or
appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or
other similar official of the Seller or any substantial part of its property, or
ordering the winding up or liquidation of the affairs of the Seller.

         Section 9.11. Limitation of Liability of Owner Trustee and Indenture
Trustee.

         (a) Notwithstanding anything contained herein to the contrary, this
Agreement has been countersigned by The Bank of New York, not in its individual
capacity but solely in its capacity as Owner Trustee of the Issuer and in no
event shall The Bank of New York, in its individual capacity or, except as
expressly provided in the Trust Agreement, The Bank of New York, as Owner
Trustee of the Issuer have any liability for the representations, warranties,
covenants, agreements or other obligations of the Issuer hereunder or in any of
the certificates, notices or agreements delivered pursuant hereto, as to all of
which recourse shall be had solely to the assets of the Issuer. For all purposes
of this Agreement, in the performance of its duties or obligations hereunder or
in the performance of any duties or obligations of the Issuer hereunder, the
Owner Trustee shall be subject to, and entitled to the benefits of, the terms
and provisions of Articles Six, Seven and Eight of the Trust Agreement.

         (b) Notwithstanding anything contained herein to the contrary, this
Agreement has been accepted by JPMorgan Chase Bank, not in its individual
capacity but solely as Indenture Trustee and in no event shall JPMorgan Chase
Bank have any liability for the representations, warranties, covenants,
agreements or other obligations of the Issuer hereunder or in any of the
certificates, notices or agreements delivered pursuant hereto, as to all of
which recourse shall be had solely to the assets of the Issuer.

                                       57
<PAGE>

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

                              HONDA AUTO RECEIVABLES 2003-1 OWNER TRUST

                              By:   THE BANK OF NEW YORK, not in its
                                    individual capacity but solely as
                                    Owner Trustee on behalf of the Trust

                              By:    /s/ John Bobko
                                  --------------------------------------------
                                  Name:  John Bobko
                                  Title: Assistant Vice President

                              AMERICAN HONDA RECEIVABLES CORP., as Seller

                              By:    /s/ Y. Takahashi
                                  --------------------------------------------
                                  Name:  Y. Takahashi
                                  Title: President

                              AMERICAN HONDA FINANCE CORPORATION, as Servicer

                              By:       /s/ Y. Takahashi
                                  --------------------------------------------
                                  Name:  Y. Takahashi
                                  Title: President

Acknowledged and accepted as of the
day and year first above written:

JPMORGAN CHASE BANK, not in its
individual capacity but solely as Indenture
Trustee

By:       /s/ Jennifer H. McCourt
   ---------------------------------------
   Name:  Jennifer H. McCourt
   Title: Vice President

                                       58
<PAGE>

                                                                      SCHEDULE A

                             SCHEDULE OF RECEIVABLES

        Delivered to the Owner Trustee and Indenture Trustee at Closing.

                                      A-1
<PAGE>

                                                                      SCHEDULE B

                          LOCATION OF RECEIVABLE FILES

American Honda Finance Corporation
6261 Katella Avenue
Suite 1A
Cypress, California  90630

American Honda Finance Corporation
1335 Northmeadow Parkway, Suite 100
Roswell, Georgia 30076

American Honda Finance Corporation
3625 West Royal Lane
Suite 100
Irving, Texas 75063

American Honda Finance Corporation
470 Granby Road, Suite 2
S. Hadley, Massachusetts 01075

American Honda Finance Corporation
2170 Point Blvd.
Suite 100
Elgin, Illinois 60123

American Honda Finance Corporation
2420 Camino Ramon
Suite 350
San Ramon, California 94583

American Honda Finance Corporation
8601 McAlpine Park Drive, #230
Charlotte, North Carolina 28211

American Honda Finance Corporation
121 Continental Drive
Suite 308
Newark, Delaware  19713

American Honda Finance Corporation
700 Van Ness Avenue, Building 300
Torrance, California 90501

                                      B-1

<PAGE>

<TABLE>
<CAPTION>
                                                                                                           EXHIBIT A

<S>                                                                                                        <C>
                FORM OF DISTRIBUTION STATEMENT TO SECURITYHOLDERS

Honda Auto Receivables 2003-1 Owner Trust

NOTE PRINCIPAL DISTRIBUTABLE AMOUNT                                             $___________________________________
     Class A-1 Notes:      ($       per $1,000 original principal amount)
     Class A-2 Notes:      ($       per $1,000 original principal amount)
     Class A-3 Notes:      ($       per $1,000 original principal amount)
     Class A-4 Notes:      ($       per $1,000 original principal amount)

NOTE INTEREST DISTRIBUTABLE AMOUNT                                              $___________________________________
     Class A-1 Notes:      ($       per $1,000 original principal amount)
     Class A-2 Notes:      ($       per $1,000 original principal amount)
     Class A-3 Notes:      ($       per $1,000 original principal amount)
     Class A-4 Notes:      ($       per $1,000 original principal amount)

NOTE PRINCIPAL CARRYOVER SHORTFALL                                              $___________________________________
     change from immediately preceding Payment Date
     Class A-1 Notes:      ($       per $1,000 original principal amount)
     Class A-2 Notes:      ($       per $1,000 original principal amount)
     Class A-3 Notes:      ($       per $1,000 original principal amount)
     Class A-4 Notes:      ($       per $1,000 original principal amount)

NOTE INTEREST CARRYOVER SHORTFALL                                               $___________________________________
     change from immediately preceding Payment Date                             $___________________________________
     Class A-1 Notes:      ($       per $1,000 original principal amount)
     Class A-2 Notes:      ($       per $1,000 original principal amount)
     Class A-3 Notes:      ($       per $1,000 original principal amount)
     Class A-4 Notes:      ($       per $1,000 original principal amount)

AVAILABLE AMOUNT                                                                $___________________________________
     Available Interest                                                         $___________________________________
     Available Principal                                                        $___________________________________

CERTIFICATE INTEREST DISTRIBUTABLE AMOUNT                                       $___________________________________
     ($_______ per 1,000 original principal amount)

CERTIFICATE PRINCIPAL DISTRIBUTABLE AMOUNT                                      $___________________________________
     ($_______ per 1,000 original principal amount)

NOTE DISTRIBUTABLE AMOUNT                                                       $___________________________________

CERTIFICATE DISTRIBUTABLE AMOUNT                                                $___________________________________

CERTIFICATE PRINCIPAL CARRYOVER SHORTFALL                                       $___________________________________
     change from immediately preceding Payment Date                             $___________________________________

CERTIFICATE INTEREST CARRYOVER SHORTFALL                                        $___________________________________
     change from immediately preceding Payment Date                             $___________________________________

POOL BALANCE                                                                    $___________________________________

                                       A-1
<PAGE>

NOTE POOL FACTOR                                                                $___________________________________
     Class A-1 Notes                                                            $___________________________________
     Class A-2 Notes                                                            $___________________________________
     Class A-3 Notes                                                            $___________________________________
     Class A-4 Notes                                                            $___________________________________

CERTIFICATE POOL FACTOR                                                         $___________________________________

RESERVE FUND BALANCE                                                            $___________________________________
     change from immediately preceding Payment Date                             $___________________________________

PAYMENTS AHEAD                                                                  $___________________________________

APPLIED PAYMENTS AHEAD                                                          $___________________________________

TOTAL SERVICING FEE                                                             $___________________________________
     ($_______ per 1,000 original principal amount)

NONRECOVERABLE ADVANCES                                                         $___________________________________

YIELD SUPPLEMENT WITHDRAWAL AMOUNT                                              $___________________________________

YIELD SUPPLEMENT AMOUNT                                                         $___________________________________

AMOUNT ON DEPOSIT IN YIELD SUPPLEMENT ACCOUNT                                   $___________________________________

TRUST FEES AND EXPENSES                                                         $___________________________________

PRINCIPAL PAYMENT AMOUNT                                                        $___________________________________

</TABLE>

                                      A-2

<PAGE>

                                                                       EXHIBIT B

                         FORM OF SERVICER'S CERTIFICATE

                       [On File with Dewey Ballantine LLP]

                                      B-1

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