Document:

Exhibit 4.3

    EXHIBIT
      4.3

    
      

      

    

     

    

     

     

    SALE
      AND SERVICING AGREEMENT

     

     

    among

     

     

    CATERPILLAR
      FINANCIAL ASSET TRUST 2006-A

     

     

    Issuing
      Entity

     

     

    CATERPILLAR
      FINANCIAL FUNDING CORPORATION

     

     

    Depositor

     

     

    and

     

     

    CATERPILLAR
      FINANCIAL SERVICES CORPORATION

     

     

    Servicer

     

     

    Dated
      as
      of June 1, 2006

     

    

     

     

     

     

    
      

      

    

    

     

    

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

     

    TABLE
      OF
      CONTENTS

    

    ARTICLE
      I              
DEFINITIONS............................................................................................................................................................1

     

    SECTION
      1.01.     Definitions.....................................................................................................................................................1

     

    SECTION
      1.02.     Other
      Definitional
      Provisions....................................................................................................................17

     

    ARTICLE
      II              
CONVEYANCE
      OF
      RECEIVABLES.....................................................................................................................18

     

    SECTION
      2.01.     Conveyance
      of
      Receivables......................................................................................................................18

     

    SECTION
      2.02.     Closing..........................................................................................................................................................19

     

    SECTION
      2.03.     Books
      and
      Records.....................................................................................................................................19

     

    ARTICLE
      III              
THE
      RECEIVABLES..............................................................................................................................................19

     

    SECTION
      3.01.     Representations
      and Warranties of
      Depositor........................................................................................19

     

    SECTION
      3.02.     Repurchase
      by Depositor or CFSC Upon
      Breach....................................................................................21

     

    SECTION
      3.03.     Custody
      of Receivable
      Files.......................................................................................................................22

     

    SECTION
      3.04.     Duties
      of
      Servicer........................................................................................................................................22

     

    SECTION
      3.05.     Acceptance
      by Issuing Entity and the Indenture Trustee of the Receivables;

                                 
       Certification by the Indenture
      Trustee......................................................................................................22

     

    ARTICLE
      IV              
ADMINISTRATION
      AND SERVICING OF
      RECEIVABLES...........................................................................24

     

    SECTION
      4.01.     Duties
      of
      Servicer.........................................................................................................................................24

     

    SECTION
      4.02.     Collection
      of Receivable
      Payments...........................................................................................................24

     

    SECTION
      4.03.     Realization
      upon
      Receivables.....................................................................................................................25

     

    SECTION
      4.04.     Physical
      Damage
      Insurance........................................................................................................................25

     

    SECTION
      4.05.     Maintenance
      of Security Interests in Financed
      Equipment...................................................................25

     

    SECTION
      4.06.     Covenants
      of
      Servicer..................................................................................................................................26

     

    SECTION
      4.07.     Purchase
      by Servicer of Receivables upon
      Breach.................................................................................26

     

    SECTION
      4.08.     Servicing
      Fee.................................................................................................................................................26

     

    SECTION
      4.09.     Servicer
      Report.............................................................................................................................................27

     

    SECTION
      4.10.     Annual
      Statement as to Compliance; Notice of
      Default........................................................................27

     

    SECTION
      4.11.     Annual
      Independent Certified Public Accountants'
      Attestation.........................................................28

     

    SECTION
      4.12.     Servicer
      Expenses........................................................................................................................................28

     

    SECTION
      4.13.     Reports
      to the
      Commission........................................................................................................................28

     

    
      
        
        

      

      
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    TABLE
      OF CONTENTS

    (continued)

     

     

    ARTICLE
      V              
DISTRIBUTIONS;
      RESERVE ACCOUNT; 

                                       
      CERTIFICATEHOLDER AND NOTEHOLDER
      INFORMATION....................................................................29

     

    SECTION
      5.01.     Establishment
      of Trust
      Accounts.............................................................................................................29

     

    SECTION
      5.02.     Collections....................................................................................................................................................31

     

    SECTION
      5.03.     Additional
      Deposits....................................................................................................................................31

     

    SECTION
      5.04.     Distributions.................................................................................................................................................31

     

    SECTION
      5.05.     Reserve
      Account.........................................................................................................................................34

    .

    SECTION
      5.06.     Certificateholder
      and Noteholder
      Information........................................................................................34

     

    SECTION
      5.07.     Net
      Deposits.................................................................................................................................................36

     

    SECTION
      5.08.     Tax
      Monitoring............................................................................................................................................36

    .

    ARTICLE
      VI              
THE
      DEPOSITOR...................................................................................................................................................36

     

    SECTION
      6.01.     Representations
      of
      Depositor....................................................................................................................36

     

    SECTION
      6.02.     Liability
      of Depositor;
      Indemnities............................................................................................................37

     

    SECTION
      6.03.     Merger
      or
      Consolidation of, or Assumption of the Obligations of,
      Depositor...................................38

     

    SECTION
      6.04.     Limitation
      on Liability of Depositor and
      Others........................................................................................39

     

    SECTION
      6.05.     Depositor
      May Own the Certificate or
      Notes............................................................................................39

     

    ARTICLE
      VII              
THE
      SERVICER.......................................................................................................................................................39

     

    SECTION
      7.01.     Representations
      of
      Servicer.........................................................................................................................39

     

    SECTION
      7.02.     Indemnities
      of
      Servicer.................................................................................................................................40

     

    SECTION
      7.03.     Merger
      or
      Consolidation of, or Assumption of the Obligations of,
      Servicer.......................................42

     

    SECTION
      7.04.     Limitation
      on Liability of Servicer and
      Others...........................................................................................42

     

    SECTION
      7.05.     CFSC
      Not
      To Resign as
      Servicer..................................................................................................................43

     

    ARTICLE
      VIII              
DEFAULT...............................................................................................................................................................43

     

    SECTION
      8.01.     Servicer
      Default..............................................................................................................................................43

     

    SECTION
      8.02.     Appointment
      of Successor
      Servicer............................................................................................................44

     

    SECTION
      8.03.     Notification
      to Noteholders and
      Certificateholder....................................................................................45

     

    SECTION
      8.04.     Waiver
      of
      Past
      Defaults................................................................................................................................45

     

    SECTION
      8.05.     Appointment
      of
      Custodians.........................................................................................................................46

     

    ARTICLE
      IX              
TERMINATION.......................................................................................................................................................46

     

    SECTION
      9.01.     Optional
      Purchase of All Receivables; Trust
      Termination......................................................................46

     

    
      
        
        

      

      
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    TABLE
      OF CONTENTS

    (continued)

     

    ARTICLE
      X              
MISCELLANEOUS
      PROVISIONS..........................................................................................................................47

     

    SECTION
      10.01.     Amendment...................................................................................................................................................47

     

    SECTION
      10.02.     Protection
      of Title to
      Trust.........................................................................................................................47

     

    SECTION
      10.03.     Notices...........................................................................................................................................................49

     

    SECTION
      10.04.     Assignment...................................................................................................................................................50

     

    SECTION
      10.05.     Limitations
      on Rights of
      Others.................................................................................................................50

     

    SECTION
      10.06.     Severability....................................................................................................................................................50

     

    SECTION
      10.07.     Separate
      Counterparts.................................................................................................................................50

     

    SECTION
      10.08.     Headings........................................................................................................................................................50

     

    SECTION
      10.09.     Governing
      Law..............................................................................................................................................50

     

    SECTION
      10.10.     Assignment
      to Indenture
      Trustee..............................................................................................................51

     

    SECTION
      10.11.     Nonpetition
      Covenants................................................................................................................................51

     

    SECTION
      10.12.     Limitation
      of Liability of Owner Trustee and Indenture
      Trustee............................................................51

     

    SCHEDULE
      A -      Schedule
      of
      Receivables............................................................................................................................................A-1

    SCHEDULE
      B -      Location
      of Receivable
      Files......................................................................................................................................B-1

    SCHEDULE
      C -      Receivable
      Files
      Certification.....................................................................................................................................C-1

    SCHEDULE
      D -      Servicer
      Report.............................................................................................................................................................D-1

    SCHEDULE
      E -      Trustee
      Instructions.....................................................................................................................................................E-1

    

    

     

    
      
        
           

          
 

        

        
        

      

      
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    SALE
      AND
      SERVICING AGREEMENT dated as of June 1, 2006, among CATERPILLAR FINANCIAL ASSET
      TRUST 2006-A, a Delaware statutory trust, CATERPILLAR FINANCIAL FUNDING
      CORPORATION, a Nevada corporation, and CATERPILLAR FINANCIAL SERVICES
      CORPORATION, a Delaware corporation.

     

    WHEREAS
      the Issuing Entity (as defined below) desires to purchase a portfolio of
      receivables arising in connection with (i) retail installment sale
      contracts for the purchase of machinery or equipment and (ii) equipment finance
      lease contracts for the lease of machinery or equipment, in each case acquired
      or originated by CFSC (as defined below) in the ordinary course of its
      business;

     

    WHEREAS
      the Depositor (as defined below) has purchased such portfolio of receivables
      from CFSC and desires to sell such portfolio of receivables to the Issuing
      Entity; and

     

    WHEREAS
      CFSC desires to service such receivables.

     

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

     

     

    ARTICLE
      I

     

    DEFINITIONS

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

     

    "Additional
      Servicing Compensation"
      means,
      with respect to any Receivable, any late fees, extension fees and other
      administrative fees or similar charges allowed by applicable law with respect
      to
      such Receivable.

     

    "Administration
      Agreement"
      means
      the Administration Agreement, dated as of June 1, 2006, among the Trust, the
      Depositor, CFSC, as administrator, and U.S. Bank National Association, as
      indenture trustee, as the same may be amended, modified or supplemented from
      time to time.

     

    "Administration
      Fee"
      means
      the fee payable to the Administrator pursuant to Section 3 of the
      Administration Agreement.

     

    "Administrator"
      means
      the administrator under the Administration Agreement.

     

    "Affiliate"
      has the
      meaning specified in the Indenture.

     

    "Agreement"
      means
      this Sale and Servicing Agreement, as the same may be amended, modified or
      supplemented from time to time.

     

    "Amount
      Financed"
      means
      with respect to a Receivable related to a Lease, the original Net Investment
      with respect to such Lease, and with respect to a Receivable related to an
      Installment Sales Contract, the sum of the amount advanced under the Receivable
      toward the purchase price of the related Financed Equipment, plus any related
      costs.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    "APR"
      or
      "Annual
      Percentage Rate"
      with
      respect to any Receivable related to an Installment Sales Contract means the
      annual percentage rate of interest of such Receivable as set forth on the
      Schedule of Receivables for such Receivable and with respect to any Receivable
      related to a Lease, the Implicit Interest Rate.

     

    "Basic
      Documents"
      has the
      meaning specified in the Indenture.

     

    "Business
      Day"
      means
      any day other than a Saturday, a Sunday or a day on which banking institutions
      or trust companies in New York, New York, Nashville, Tennessee, Las Vegas,
      Nevada or Wilmington, Delaware are authorized or obligated by law, regulation
      or
      executive order to remain closed.

     

    "Caterpillar"
      means
      Caterpillar Inc., a Delaware corporation, and its successors.

     

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

     

    "Certificate
      Balance"
      means,
      on the Closing Date, $4,835,819 and, thereafter, $4,835,819 reduced by all
      amounts allocable to principal previously distributed to the Certificateholder
      pursuant to Section 5.02(a) of the Trust Agreement.

     

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

     

    "Certificate
      Pool Factor"
      means
      1.0000000 as of the Closing Date, and as of the close of business on any
      Distribution Date thereafter a seven-digit decimal figure equal to the
      Certificate Balance as of such date (after giving effect to reductions of the
      Certificate Balance on such date) divided by the Certificate Balance at the
      Closing Date.

     

    "Certificateholder"
      has the
      meaning specified in the Trust Agreement.

     

    "CFSC"
      means
      Caterpillar Financial Services Corporation, a Delaware corporation, and its
      successors.

     

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

     

    "Class A
      Noteholders"
      has the
      meaning specified in the Indenture. 

     

    "Class A
      Noteholders' Interest Carryover Shortfall"
      means,
      with respect to any Distribution Date, the sum of (i) the excess, if any,
      of (A) the sum of (1) the Class A Noteholders' Monthly Interest
      Distributable Amount for the preceding Distribution Date and (2) any
      outstanding Class A Noteholders' Interest Carryover Shortfall on such
      preceding Distribution Date, over (B) the amount in respect of interest
      that is actually distributed to the Class A Noteholders on such preceding
      Distribution Date, and (ii) interest on the amount of interest due but not
      paid to Class A Noteholders on the preceding Distribution Date, to the
      extent permitted by law, at the Class A-1 Note Interest Rate, the
      Class A-2 Note Interest Rate, the Class A-3 Note Interest Rate and the
      Class A-4 Note Interest Rate, as applicable, from and including such
      preceding Distribution Date to, but excluding, the current Distribution
      Date.

     

    
      
        
        

      

      
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    "Class A
      Noteholders' Interest Distributable Amount"
      means,
      with respect to any Distribution Date, the sum of (i) the Class A
      Noteholders' Monthly Interest Distributable Amount for such Distribution Date
      and (ii) the Class A Noteholders' Interest Carryover Shortfall for such
      Distribution Date.

     

    "Class A
      Noteholders' Monthly Interest Distributable Amount"
      means,
      with respect to any Distribution Date, an amount equal to the aggregate amount
      of interest accrued on the Class A-1 Notes, the Class A-2 Notes, the
      Class A-3 Notes and the Class A-4 Notes at the Class A-1 Note
      Interest Rate, the Class A-2 Note Interest Rate, the Class A-3 Note
      Interest Rate and the Class A-4 Note Interest Rate, respectively, with
      respect to the Class A-1 Notes, from and including the preceding
      Distribution Date (or, in the case of the initial Distribution Date, from and
      including the Closing Date), to but excluding such Distribution Date (based
      on a
      360-day year and the actual number of days elapsed), and, with respect to the
      Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes,
      from and including the 25th
      day of
      the month preceding such Distribution Date (or, in the case of the initial
      Distribution Date, from and including the Closing Date), to but excluding the
      25th
      day of
      the month of such Distribution Date (in each case based on a 360-day year of
      twelve 30-day months).

     

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

     

    "Class A-1
      Note Final Scheduled Distribution Date"
      means
      the Distribution Date occurring in June 2007. 

     

    "Class A-1
      Note Interest Rate"
      has the
      meaning specified in the Indenture.

     

    "Class A-1
      Note Pool Factor"
      means
      1.0000000 as of the Closing Date, and as of the close of business on any
      Distribution Date thereafter means a seven digit decimal figure equal to the
      Outstanding Principal Amount of the Class A-1 Notes as of such date (after
      giving effect to payments in reduction of the principal amount of the
      Class A-1 Notes on such date) divided by the original Outstanding Principal
      Amount of the Class A-1 Notes.

     

    "Class A-2
      Note Final Scheduled Distribution Date"
      means
      the Distribution Date occurring in February 2009.

     

    "Class A-2
      Note Interest Rate"
      has the
      meaning specified in the Indenture.

     

    "Class A-2
      Note Pool Factor"
      means
      1.0000000 as of the Closing Date and as of the close of business on any
      Distribution Date thereafter means a seven digit decimal figure equal to the
      Outstanding Principal Amount of the Class A-2 Notes as of such date (after
      giving effect to payments in reduction of the principal amount of the
      Class A-2 Notes on such date) divided by the original Outstanding Principal
      Amount of the Class A-2 Notes.

     

    "Class A-3
      Note Final Scheduled Distribution Date"
      means
      the Distribution Date occurring in May 2010.

     

    
      
        
        

      

      
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    "Class A-3
      Note Interest Rate"
      has the
      meaning specified in the Indenture.

     

    "Class A-3
      Note Pool Factor"
      means
      1.0000000 as of the Closing Date and, as of the close of business on any
      Distribution Date thereafter means a seven digit decimal figure equal to the
      Outstanding Principal Amount of the Class A-3 Notes as of such date (after
      giving effect to payments in reduction of the principal amount of the
      Class A-3 Notes on such date) divided by the original Outstanding Principal
      Amount of the Class A-3 Notes.

     

    "Class A-4
      Note Final Scheduled Distribution Date"
      means
      the Distribution Date occurring in August 2011.

     

    "Class A-4
      Note Interest Rate"
      has the
      meaning specified in the Indenture.

     

    "Class A-4
      Note Pool Factor"
      means
      1.0000000 as of the Closing Date and, as of the close of business on any
      Distribution Date thereafter means a seven digit decimal figure equal to the
      Outstanding Principal Amount of the Class A-4 Notes as of such date (after
      giving effect to payments in reduction of the principal amount of the
      Class A-4 Notes on such date) divided by the original Outstanding Principal
      Amount of the Class A-4 Notes.

     

    "Class
      B Note Final Scheduled Distribution Date"
      means
      the Distribution Date occurring in June 2012.

     

    "Class
      B Noteholders"
      has the
      meaning specified in the Indenture.

     

    "Class
      B Noteholders' Interest Carryover Shortfall"
      means,
      with respect to any Distribution Date, the sum of (i) the excess, if any, of
      (A)
      the sum of (1) the Class B Noteholders' Monthly Interest Distributable Amount
      for the preceding Distribution Date and (2) any outstanding Class B Noteholders'
      Interest Carryover Shortfall on such preceding Distribution Date, over (B)
      the
      amount in respect of interest that is actually distributed to the Class B
      Noteholders on such preceding Distribution Date, and (ii) interest on the amount
      of interest due but not paid to Class B Noteholders on the preceding
      Distribution Date, to the extent permitted by law, at the Class B Note Interest
      Rate from and including the 25th
      day of
      the month preceding such Distribution Date, to but excluding the 25th
      day of
      the month containing such Distribution Date (based on a 360-day year of twelve
      30-day months).

     

    "Class
      B Noteholders' Interest Distributable Amount"
      means,
      with respect to any Distribution Date, the sum of (i) the Class B Noteholders'
      Monthly Interest Distributable Amount for such Distribution Date and (ii) the
      Class B Noteholders' Interest Carryover Shortfall for such Distribution
      Date.

     

    "Class
      B Noteholders' Monthly Interest Distributable Amount"
      means,
      with respect to any Distribution Date, an amount equal to the aggregate interest
      accrued on the Class B Notes at the Class B Note Interest Rate from and
      including the 25th
      day of
      the month preceding such Distribution Date (or, in the case of the initial
      Distribution Date, from and including the Closing Date), to but excluding the
      25th
      day of
      the month containing such Distribution Date (based on a 360-day year of twelve
      30-day months).

     

    "Class
      B Note Interest Rate"
      has the
      meaning specified in the Indenture.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    "Class
      B Note Pool Factor"
      means
      1.0000000 as of the Closing Date and, as of the close of business on any
      Distribution Date thereafter means a seven digit decimal figure equal to the
      Outstanding Principal Amount of the Class B Notes as of such date (after giving
      effect to payments in reduction of the principal amount of the Class B Notes
      on
      such date) divided by the original Outstanding Principal Amount of the Class
      B
      Notes.

     

    "Class
      of Notes"
      means
      all Notes included in Class A-1 Notes, all Notes included in Class A-2
      Notes, all Notes included in Class A-3 Notes, all Notes included in
      Class A-4 Notes or all Notes included in Class B Notes, whichever is
      appropriate.

     

    "Closing
      Date"
      means
      June 28, 2006.

     

    "Collection
      Account"
      means
      the account designated as such, established and maintained pursuant to Section
      5.01 (a)(i).

     

    "Collection
      Period"
      means,
      with respect to the first Distribution Date, the calendar month of June 2006
      and, with respect to each subsequent Distribution Date, the immediately
      preceding calendar month. Any amount stated "as of the close of business on
      the
      last day of a Collection Period" shall give effect to the following calculations
      as determined as of the end of the day on such last day: (i) all applications
      of
      collections and (ii) all distributions to be made on the following Distribution
      Date.

     

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

     

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

     

    "Contract"
      means
      an Installment Sales Contract or a Lease, as applicable, and shall include
      all
      documents relating to an amendment or modification of such
      Contract.

     

    "Contract
      Balance"
      of a
      Receivable, as of the close of business on the last day of a Collection Period
      or as of the Cut-off Date, as applicable, means the Amount Financed minus the
      sum of (i) that portion of all Scheduled Payments paid on or prior to such
      day
      allocable to principal using the actuarial method, (ii) any payment of the
      Purchase Amount with respect to such Receivable purchased by the Servicer or
      repurchased by CFSC or the Depositor and allocable to principal and (iii) any
      prepayment in full or any partial prepayments (including any Liquidation
      Proceeds) applied to reduce the Contract Balance of such Receivable, in each
      case plus accrued and unpaid interest. With respect to each Lease, the Servicer
      shall allocate all Scheduled Payments thereon between "principal" and "interest"
      based upon each such Lease's Implicit Interest Rate.

     

    "Corporate
      Trust Office"
      means
      the 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 209 South LaSalle Street, Suite 300,
      Chicago, Illinois, 60604, Attention: Caterpillar Financial Asset Trust 2006-A,
      except that for purposes of Section 3.02 of the Indenture, such term shall
      mean
      the office or agency of the Indenture Trustee in the Borough of Manhattan in
      the
      City of New York which office at the date hereof is located at 100 Wall Street,
      Suite 1600, New York, New York 10005; or at such other address as the Indenture
      Trustee may designate from time to time by notice to the Noteholders, the
      Servicer, the Owner Trustee and the Depositor, or the principal corporate trust
      office of any successor Indenture Trustee (the address of which the successor
      Indenture Trustee will notify the Noteholders, the Servicer, the Owner Trustee
      and the Depositor); provided that for purposes of Section 3.02 of the Indenture,
      the address of any such office shall be in the Borough of Manhattan in the
      City
      of New York.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    "Cross-Collateralized
      Equipment"
      means,
      with respect to any Contract, an item of machinery or equipment, other than
      the
      related Financed Equipment, which also secures an Obligor's indebtedness or
      obligations under the respective Receivable in addition to the related Financed
      Equipment.

     

    "Cumulative
      Realized Losses"
      means,
      with respect to any Collection Period, the percentage equivalent of a fraction
      equal to all Realized Losses during the period since the Cut-off Date through
      the end of such Collection Period divided by the Initial Pool
      Balance.

     

    "Custodian"
      means
      U.S. Bank National Association, in its capacity as custodian of the Receivable
      Files, and its successors and assigns in such capacity, pursuant to the
      Custodial Agreement.

     

    "Custodial
      Agreement"
      means
      the Custodial Agreement, dated as of June 1, 2006, among CFSC, the Depositor,
      the Issuing Entity and the Custodian, as the same may be amended, modified
      or
      supplemented from time to time.

     

    "Cut-off
      Date"
      means
      June 1, 2006.

     

    "Dealer"
      means
      each Caterpillar dealer who sold an item of Financed Equipment relating to
      a
      Receivable.

     

    "Dealer
      Receivable"
      means a
      Receivable originated by a Dealer and acquired by CFSC from such
      Dealer.

     

    "Delivery
      Date"
      means
      the date on which the Receivable Files are delivered to the
      Custodian.

     

    "Depositor"
      means
      Caterpillar Financial Funding Corporation, a Nevada corporation, and its
      successors in interest to the extent permitted hereunder.

     

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

     

    "Discount
      Factor"
      means
      7.90% per annum.

     

    "Distribution
      Date"
      means
      the 25th day of each calendar month or, if such day is not a Business Day,
      the
      immediately following Business Day, commencing on July 25,
      2006.

     

    "Eligible
      Institution"
      means
      (a) the corporate trust department of the Indenture Trustee, the Owner Trustee,
      JPMorgan Chase Bank, N.A., as long as it is paying agent under the Trust
      Agreement or U.S. Bank National Association, so long as it is a paying agent
      under the Indenture, or (b) a depository institution organized under the laws
      of
      the United States of America or any one of the states thereof or the District
      of
      Columbia (or any domestic branch of a foreign bank) (i)(A) which has either
      (1)
      a long-term unsecured debt rating of AAA or better by Standard & Poor's and
      Aaa or better by Moody's or (2) a short-term unsecured debt rating or a
      certificate of deposit rating of "A-1+" by Standard & Poor's and "Prime-1"
      or better by Moody's, or any other long-term, short-term or certificate of
      deposit rating acceptable to the Rating Agencies and (B) whose deposits-are
      insured by the FDIC or (ii)(A) the parent of which has a long-term or short-term
      unsecured debt rating acceptable to the Rating Agencies and (B) whose deposits
      are insured by the FDIC. If so qualified, the Indenture Trustee, the Owner
      Trustee, JPMorgan Chase Bank, N.A. or U.S. Bank National Association may be
      considered an Eligible Institution for the purposes of clause (b) of this
      definition.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    "Eligible
      Investments"
      mean
      the following (other than any issued by CFSC, the holder of the Certificates
      or
      any of their respective Affiliates):

     

                                  
      (a) direct
      obligations of, and obligations fully guaranteed as to timely payment by, the
      United States of America;

     

                                  
      (b) demand deposits, time deposits or certificates of deposit of any depository
      institution incorporated under the laws of the United States of America or
      any
      state thereof (or any domestic branch of a foreign bank) and subject to
      supervision and examination by federal or state banking or depository
      institution authorities; provided, however, that at the time of
      the investment or contractual commitment to invest therein, the commercial
      paper
      or other short-term unsecured debt obligations (other than such obligations
      the
      rating of which is based on the credit of a Person other than such depository
      institution) thereof shall have a credit rating from each Rating Agency in
      the
      highest investment category granted thereby;

     

                                  
      (c) commercial paper having, at the time of the investment or contractual
      commitment to invest therein, a rating from each Rating Agency in the highest
      investment category granted thereby;

     

                                  
      (d) investments in money market funds having a rating from each Rating Agency
      in
      the highest investment category granted thereby (including any such funds for
      which the Indenture Trustee or the Owner Trustee or any of their respective
      Affiliates is investment manager or advisor);

     

                                  
      (e) investments in common trust funds having a rating from each Rating Agency
      in
      the highest investment category granted thereby maintained and operated by
      Eligible Institutions (including the Indenture Trustee or the Owner
      Trustee);

     

                                   
      (f) bankers' acceptances issued by any depository institution or trust company
      referred to in clause (b) above;

     

                                  
      (g) repurchase obligations with respect to any security that is a direct
      obligation of, or fully guaranteed by, the United States of America or any
      agency or instrumentality thereof the obligations of which are backed by the
      full faith and credit of the United States of America, in either case entered
      into with (i) a depository institution (acting as principal) described in clause
      (b) or (ii) a depository institution the deposits of which are insured by FDIC;
      or

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

                                   
        (h) any other investment that is permitted by each of the Rating
        Agencies.

    

     

    "Eligible
      Securities Account"
      means
      either (a) a segregated account with an Eligible Institution or (b) a segregated
      trust account with the corporate trust department of a depository institution
      organized under the laws of the United States of America or any one of the
      states thereof or the District of Columbia (or any domestic branch of a foreign
      bank), having corporate trust powers and acting as trustee for funds deposited
      in such account, so long as such depository institution shall have a senior
      unsecured rating of at least investment grade from each Rating Agency in one
      of
      its generic rating categories.

     

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

     

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

     

    "Final
      Scheduled Distribution Date"
      means
      any of the Class A-1 Note Final Scheduled Distribution Date, the
      Class A-2 Note Final Scheduled Distribution Date, the Class A-3 Note
      Final Scheduled Distribution Date, the Class A-4 Note Final Scheduled
      Distribution Date or the Class B Note Final Scheduled Distribution
      Date.

     

    "Financed
      Equipment"
      means
      an item of machinery or equipment, together with all accessions thereto, which
      was purchased or refinanced, in the case of an Installment Sales Contract or
      leased, in the case of a Lease, by an Obligor pursuant to the terms of the
      related Contract, and in either case which secures such related Obligor's
      indebtedness or obligations under the respective Receivable.

     

    "First
      Priority Principal Distribution Amount"
      means,
      with respect to any Distribution Date, an amount, not less than zero, equal
      to
      the excess, if any, of (i) the Outstanding Principal Amount of all Class A
      Notes as of the preceding Distribution Date (after giving effect to any
      principal payments made on the Class A Notes on such preceding Distribution
      Date) over (ii) the Note Value at the end of the Collection Period preceding
      such Distribution Date; provided,
      however,
      that
      the First Priority Principal Distribution Amount shall not be less than the
      aggregate of (i) on and after the Class A-1 Note Final Scheduled
      Distribution Date, the amount that is necessary to reduce the Outstanding
      Principal Amount of the Class A-1 Notes to zero, (ii) on and after the
      Class A-2 Note Final Scheduled Distribution Date, the amount that is
      necessary to reduce the Outstanding Principal Amount of the Class A-2 Notes
      to zero, (iii) on and after the Class A-3 Note Final Scheduled Distribution
      Date, the amount that is necessary to reduce the Outstanding Principal Amount
      of
      the Class A-3 Notes to zero and (iv) on and after the Class A-4 Note
      Final Scheduled Distribution Date, the amount that is necessary to reduce the
      Outstanding Principal Amount of the Class A-4 Notes to zero.

     

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

     

    "Holder"
      or
      "Noteholder"
      has the
      meaning specified in the Indenture.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    "Implicit
      Interest Rate"
      means
      with respect to any Receivable related to a Lease, the rate set forth with
      respect to such Receivable on the Schedule of Receivables.

     

    "Indenture"
      means
      the Indenture, dated as of June 1, 2006, between the Issuing Entity and the
      Indenture Trustee, as the same may be amended, modified or supplemented from
      time to time.

     

    "Indenture
      Trustee"
      means
      U.S. Bank National Association, a national banking association, in its capacity
      as indenture trustee under the Indenture, its successors in interest and any
      successor indenture trustee under the Indenture.

     

    "Initial
      Note Value"
      means
      the Note Value as of the Cut-off Date, which is $965,955,819.

     

    "Initial
      Pool Balance"
      means
      the Pool Balance as of the Cut-off Date, which is $979,999,737.

     

    "Insolvency
      Event"
      means,
      with respect to a specified Person, (i) the entry 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.

     

    "Installment
      Sales Contract"
      means,
      with respect to any applicable Receivable, the related fixed rate retail
      installment sale contract for the purchase of machinery or
      equipment.

     

    "Investment
      Earnings"
      means,
      with respect to any Distribution Date, the investment earnings (net of losses
      and investment expenses) on amounts on deposit in the Trust
      Accounts.

     

    "Issuing
      Entity"
      means
      Caterpillar Financial Asset Trust 2006-A, a Delaware statutory trust, and its
      successors.

     

    "Lease"
      means,
      with respect to any applicable Receivable, the related equipment finance lease
      contract.

     

    "Lien"
      means a
      security interest, lien, charge, pledge, equity or encumbrance of any kind
      with
      respect to any Receivable other than mechanics' liens and any liens which attach
      to such Receivable by operation of law as a result of any act or omission by
      the
      related Obligor.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    "Liquidated
      Receivable"
      means
      any Receivable which has been liquidated by the Servicer through the sale or
      other disposition of the related Financed Equipment.

     

    "Liquidation
      Proceeds"
      means,
      with respect to any Liquidated Receivable, the monies collected in respect
      thereof, from whatever source (including the proceeds of insurance policies
      with
      respect to the related Financed Equipment or Obligor on a Liquidated
      Receivable), net of the sum of any amounts expended by the Servicer in
      connection with such liquidation and any amounts required by law or the
      applicable Contract to be remitted to the Obligor on such Liquidated Receivable,
      excluding (i) Recoveries and (ii) monies collected in respect of any Liquidated
      Receivable in excess of the Contract Balance therefor.

     

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

     

    "Net
      APR"
      means,
      with respect to any Receivable, the APR therefor less the Servicing Fee Rate.
      

     

    "Net
      Excess Spread"
      means,
      with respect to any Distribution Date on or prior to the Distribution Date
      on
      which the amount on deposit in the Reserve Account equals the Specified Reserve
      Account Balance, the Total Available Amount reduced by (i) the Servicing Fee
      and
      all unpaid Servicing Fees from prior Collection Periods, (ii) the Administration
      Fee and all unpaid Administration Fees from prior Collection Periods, (iii)
      the
      Class A Noteholders' Interest Distributable Amount, (iv) the Class B
      Noteholders' Interest Distributable Amount and (v) the difference between (A)
      the Note Value at the end of the second preceding Collection Period, or in
      the
      case of the initial Distribution Date, the Initial Note Value, and (B) the
      Note
      Value at the end of the preceding Collection Period.

     

    "Net
      Investment"
      with
      respect to a Lease, means the present value of the sum of (i) Scheduled
      Payments due thereunder and (ii) the residual payment amount at the end of
      the
      Lease term, discounted at the Implicit Interest Rate for such
      Lease.

     

    "New
      York UCC"
      means
      the New York Uniform Commercial Code.

     

    "Note
      Register"
      and
      "Note
      Registrar"
      have
      the meanings specified in the Indenture.

     

    "Note
      Value"
      means,
      at any time, the present value of the unpaid Scheduled Payments on the
      Receivables (including all lease residual payments on the Leases), discounted
      on
      a monthly basis at the Discount Factor. For purposes of calculating Note Value
      for any (i) delinquent Receivable that has not had the Financed Equipment
      by which it is secured repossessed and which is not a Liquidated Receivable
      or a
      180-Day Receivable, the amount of any delinquent payments will be assumed to
      be
      received in the next Collection Period and all other payments which have not
      yet
      become due will be assumed to be received as originally scheduled,
      (ii) Receivable that has had the Financed Equipment by which it is secured
      repossessed but which has not yet become a Liquidated Receivable or a 180-Day
      Receivable, the outstanding Contract Balance of that Receivable will be assumed
      to be received in the next Collection Period and it will be assumed that no
      other payments will be received on that Receivable, (iii) Liquidated
      Receivable, it will be assumed that no payments will be received on that
      Receivable and (iv) 180-Day Receivable, the aggregate amount of unpaid
      Scheduled Payments of such 180-Day Receivable will be reduced by the Write
      Down
      Amount, if any, calculated during the preceding Collection Period and all
      remaining Scheduled Payments will be assumed to be received as originally
      scheduled. 

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    "Noteholders'
      Interest Distributable Amount"
      means,
      with respect to any Distribution Date, the sum of (i) the Class A
      Noteholders' Interest Distributable Amount and (ii) the Class B Noteholders'
      Interest Distributable Amount for such Distribution Date. 

     

    "Notes"
      means
      the Class A Notes and the Class B Notes, collectively.

     

    "Obligor"
      on a
      Receivable means (i) the purchaser, co-purchasers or lessees of the Financed
      Equipment and (ii) any other Person, including the related Dealer, who owes
      payments under the Receivable.

     

    "Officers'
      Certificate"
      means a
      certificate signed by (i) the chairman of the board, the president, the vice
      chairman of the board, the executive vice president, any vice president, a
      treasurer or any assistant treasurer and (ii) the controller (or chief
      accounting officer) or a secretary or assistant secretary, in each case of
      the
      Depositor or the Servicer, as appropriate.

     

    "180-Day
      Receivable"
      means,
      as of the last day of any Collection Period, any Receivable as to which (i)
      a
      Scheduled Payment is more than 180 days past its due date, as specified in
      the
      related Contract, and (ii) the Servicer has determined its estimated value
      in
      accordance with its servicing standards.

     

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

     

    "Original
      Contract"
      means
      with respect to each Receivable, a related Contract that satisfies the following
      conditions:

     

    (a)          
      (i) Such
      Contract states as part of its terms: 

     

    "Although
      multiple counterparts of this document may be signed, only the counterpart
      accepted, acknowledged and certified by CFSC on the signature page thereof
      as
      the original will constitute original chattel paper."; and

     

    (ii) CFSC
      has
      accepted, acknowledged and certified one originally executed copy or version
      of
      such Contract (and no other) by stamping on the signature page thereon the
      following legend and executing the same where indicated (which execution will
      be
      effected in red by use of a stamp containing a replica of an authorized
      signatory of CFSC):

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    ACCEPTED,
      ACKNOWLEDGED AND CERTIFIED BY CATERPILLAR FINANCIAL SERVICES CORPORATION AS
      THE
      ORIGINAL.

    By:________________________________________ 

    Title:_______________________________________;
      or

     

    
      	 	
              (b)

            	
              Such
                Contract is in "snap-set" or other form for which only one original
                may be
                produced.

            

    

     

    
      	 	
              (c)

            	
              The
                Contract is a Dealer Receivable and the Dealer has represented and
                warranted to CFSC that such Contract is the original and only contract
                executed in connection with the related Financed
                Equipment.

            

    

     

    "Outstanding"
      has the
      meaning specified in the Indenture.

     

    "Outstanding
      Principal Amount"
      means
      the aggregate principal amount of all Notes, or a Class of Notes, as applicable,
      Outstanding at the date of determination.

     

    "Over
      60-day Delinquency Percentage"
      means,
      for any Distribution Date, the percentage equivalent of a fraction equal to
      the
      aggregate Contract Balance of all Receivables for which a Scheduled Payment
      was
      more than 60 days past its related due date (as specified in the related
      Contract) as of the end of the preceding Collection Period, divided by the
      Pool
      Balance on such Distribution Date.

     

    "Owner
      Trust Estate"
      has the
      meaning specified in the Trust Agreement.

     

    "Owner
      Trustee"
      means
      Chase Bank USA, National Association in its capacity as owner trustee under
      the
      Trust Agreement, its successors in interest and any successor Owner Trustee
      under the Trust Agreement.

     

    "Pool
      Balance"
      means,
      at any time, the aggregate of the Contract Balances of the Receivables at the
      end of the preceding Collection Period, after giving effect to (i) all payments
      received from Obligors and Purchase Amounts remitted by CFSC, the Depositor
      or
      the Servicer, as the case may be, for such Collection Period, (ii) Liquidation
      Proceeds received with respect to any Liquidated Receivables received during
      such Collection Period and (iii) all Realized Losses on Liquidated Receivables
      and 180 Day Receivables for that Collection Period.

     

    "Pool
      Factor"
      means
      1.0000000 as of the Cut-off Date and, as of the close of business on the last
      day of a Collection Period thereafter means a seven digit decimal figure equal
      to the Pool Balance as of such date divided by the Initial Pool
      Balance.

     

    "Principal
      Distribution Account"
      means
      the administrative subaccount within the Collection Account established by
      the
      Indenture Trustee pursuant to Section
      5.01(a)(i).

     

    "Principal
      Distribution Amount"
      means,
      with respect to any Distribution Date, the sum of the First Priority Principal
      Distribution Amount, the Second Priority Principal Distribution Amount and
      the
      Regular Principal Distribution Amount for such Distribution Date.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    "Purchase
      Agreement"
      means
      the Purchase Agreement, dated as of June 1, 2006, between the Depositor and
      CFSC, as the same may be amended, modified or supplemented from time to
      time.

     

    "Purchase
      Amount"
      means,
      with respect to an Installment Sales Contract or a Lease, the Contract Balance
      calculated as of the close of business on the last day of a Collection Period,
      required to prepay in full the respective Receivable under the terms thereof,
      in
      each case plus interest at the related APR to the end of the month during which
      the Installment Sales Contract or Lease became a Purchased
      Receivable.

     

    "Purchased
      Receivable"
      means a
      Receivable (i) purchased as of the close of business on the last day of a
      Collection Period by the Servicer pursuant to Section
      4.07,
      (ii)
      repurchased as of the last day of a Collection Period by the Depositor or CSFC
      pursuant to Section
      3.02,
      or
      (iii) purchased by the Servicer pursuant to Section
      9.01.

     

    "Rating
      Agencies"
      means
      Moody's and Standard & Poor's. If no such organization or successor is in
      existence, "Rating Agency" shall be a nationally recognized statistical rating
      organization or other comparable Person designated by the Depositor, notice
      of
      which designation shall be given to the Indenture Trustee, the Owner Trustee
      and
      the Servicer.

     

    "Rating
      Agency Condition"
      means,
      with respect to any action, that each Rating Agency shall have been given 10
      days' (or such shorter period as is acceptable to each Rating Agency) prior
      notice thereof and that each Rating Agency shall have notified the Depositor,
      the Servicer, the Owner Trustee and the Indenture Trustee in writing that such
      action will not result in a reduction or withdrawal of the then current rating
      of any Class of Notes.

     

    "Realized
      Loss"
      means,
      for any Distribution Date, the sum of (i) with respect to any Receivable that
      became a Liquidated Receivable during the related Collection Period, the excess,
      if any, of (a) the Contract Balance of such Liquidated Receivable minus the
      Write Down Amount for such Receivable, if any, over (b) the Liquidation Proceeds
      for that Liquidated Receivable for that Collection Period to the extent
      allocable to principal and (ii) the Write Down Amount, if any, calculated during
      the related Collection Period, with respect to each 180-Day
      Receivable.

     

    "Receivable"
      means
      any Contract listed on the Schedule of Receivables.

     

    "Receivable
      File"
      means
      (a) with respect to each Receivable (other than a Dealer Receivable), the
      Original Contract related to such Receivable and (b) with respect to each Dealer
      Receivable, the Original Contract related to such Receivable and any documents
      used to assign such Dealer Receivable and the related Dealer's security interest
      in the related Transaction Equipment to CFSC.

     

    "Recoveries"
      means,
      with respect to any Liquidated Receivable, (a) monies collected in respect
      thereof, from whatever source, but after (i) such Receivable became a Liquidated
      Receivable and (ii) the proceeds from the sale or other disposition of the
      related Financed Equipment have been received by the Servicer for deposit in
      the
      Collection Account, net of (b) the sum of any amounts expended by the Servicer
      for the account of the Obligor and any amounts required by law or the applicable
      Contract to be remitted to the Obligor.

     

    
      
        
           

        

      

      
        13

        
          

        

      

      
        
        

      

    

    "Regular
      Principal Distribution Amount"
      means,
      with respect to any Distribution Date, an amount, not less than zero, equal
      to
      (i) the excess of (A) the sum of the Outstanding Principal Amount of all Notes
      and the Certificate Balance as of the preceding Distribution Date (in each
      case,
      after giving effect to any principal payments made on the Notes and Certificates
      on such preceding Distribution Date) over (B) the Note Value at the end of
      the
      Collection Period preceding such Distribution Date, minus (ii) the sum of (A)
      the First Priority Principal Distribution Amount and (B) the Second Priority
      Principal Distribution Amount for such Distribution Date.

     

    "Regulation
      AB"
      means
      Subpart 229.1100 - Asset Backed Securities (Regulation AB), 17 C.F.R.
§§229.1100-229.1123, as such may be amended from time to time, and subject to
      such clarification and interpretation as have been provided by the Commission
      in
      the adopting release (Asset-Backed Securities, Securities Act Release No.
      33-8518, 70 Fed. Reg. 1,506, 1,531 (January 7, 2005)) or by the staff of the
      Commission, or as may be provided by the Commission or its staff from time
      to
      time.

     

    "Reserve
      Account"
      means
      the account designated as such, established and maintained pursuant to
Section
      5.01(a)(ii).

     

    "Reserve
      Account Initial Deposit"
      means
      the initial deposit to the Reserve Account by the Issuing Entity on the Closing
      Date of $12,074,448.

     

    "Schedule
      of Receivables"
      means
      the schedule of Receivables (which schedule may be in the form of microfiche)
      attached as Schedule A.

     

    "Scheduled
      Payment"
      on a
      Receivable means the scheduled periodic payment required to be made by the
      Obligor.

     

    "Securities"
      means,
      collectively, the Notes and the Certificate.

     

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

     

    "Second
      Priority Principal Distribution Amount"
      means,
      with respect to any Distribution Date, an amount, not less than zero, equal
      to
      (i) the excess, if any, of (A) the Outstanding Principal Amount of all Notes
      as
      of the preceding Distribution Date (after giving effect to any principal
      payments made on the Notes on such preceding Distribution Date) over (B) the
      Note Value at the end of the Collection Period preceding such Distribution
      Date
      minus (ii) the First Priority Principal Distribution Amount for such
      Distribution Date; provided,
      however,
      that on
      and after the Class B Note Final Scheduled Distribution Date, the Second
      Priority Principal Distribution Amount shall be not less than an amount that
      is
      necessary to reduce the Outstanding Principal Amount of the Class B Notes to
      zero.

     

    "Securities
      Intermediary"
      has the
      meaning specified in Section 5.01(c)(ii)(B) and initially means U.S. Bank
      National Association.

     

    "Servicer"
      means
      CFSC, as the servicer of the Receivables, and each successor to CFSC (in the
      same capacity) pursuant to Section
      7.03
      or
8.02.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    "Servicer
      Default"
      means
      an event specified in Section
      8.01.

     

    "Servicer
      Report"
      means
      an Officers' Certificate of the Servicer delivered pursuant to Section
      4.09,
      substantially in the form of Schedule
      D
      or in
      such other form that is acceptable to the Indenture Trustee, the Owner Trustee
      and the Servicer.

     

    "Servicing
      Fee"
      means
      the fee payable to the Servicer for services rendered during the respective
      Collection Period, determined pursuant to Section
      4.08.

     

    "Servicing
      Fee Rate"
      means
      1.0% per annum.

     

    "Specified
      Reserve Account Balance"
      means,
      with respect to any Distribution Date, an amount equal to the lesser of (i)
      the
      Outstanding Principal Amount of the Notes and (ii) 1.50% of the Initial
      Note Value; provided,
      however,
      that
      the percentage specified in clause (ii) of this definition of Specified Reserve
      Account Balance may be reduced as follows:

     

    
      	·  	
              if
                on the Distribution Date in December 2007, (i) Cumulative Realized
                Losses for the related Collection Period are less than 0.65% and
                (ii) the Three Month Rolling Over 60-Day Delinquency Percentage
                for
                such Distribution Date
                is
                less than 5.00%, the percentage specified in clause (ii) of this
                definition of Specified Reserve Account Balance will be 1.25% for
                the
                December 2007 Distribution Date and each subsequent Distribution
                Date,
                subject to any further reduction in accordance with the terms of
                this
                definition;

            

    

     

    
      	·  	
              if
                on the Distribution Date in June 2008, (i) the percentage then specified
                in clause (ii) of this definition of Specified Reserve Account Balance
                is
                1.50%, (ii) Cumulative Realized Losses for the related Collection
                Period
                are less than 1.00% and (iii) the Three Month Rolling Over 60-Day
                Delinquency Percentage for such Distribution Date is less than 6.00%,
                the
                percentage then specified in clause (ii) of this definition of Specified
                Reserve Account Balance will be reduced by 0.50% for the June 2008
                Distribution Date and each subsequent Distribution
                Date;

            

    

     

    
      	·  	
              if
                on the Distribution Date in June 2008, (i) the percentage then specified
                in clause (ii) of this definition of Specified Reserve Account Balance
                is
                1.25%, (ii) Cumulative Realized Losses for the related Collection
                Period
                are less than 1.00% and (iii) the Three Month Rolling Over 60-Day
                Delinquency Percentage for such Distribution Date is less than 6.00%,
                the
                percentage then specified in clause (ii) of this definition of Specified
                Reserve Account Balance will be reduced by 0.25% for the June 2008
                Distribution Date and each subsequent Distribution Date;
                and

            

    

     

    
      	·  	
              if
                on the Distribution Date in December 2008, (i) the percentage then
                specified in clause (ii) of this definition of Specified Reserve
                Account
                Balance is 1.25% or greater, (ii) Cumulative Realized Losses for
                the
                related Collection Period are less than 1.20% and (iii) the Three
                Month
                Rolling Over 60-Day Delinquency Percentage for such Distribution
                Date is
                less than 7.00%, the percentage then specified in clause (ii) of
                this
                definition of Specified Reserve Account Balance will be reduced by
                0.25%
                for the December 2008 Distribution Date and each subsequent Distribution
                Date.

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    provided,
      further,
      that on
      and after the date on which the Depositor eliminates the Reserve Account in
      accordance with the provisions of Section 5.05(e), the Specified Reserve Account
      Balance shall be zero.

     

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

     

    "Three
      Month Rolling Over 60-Day Delinquency Percentage"
      means,
      for any Distribution Date, the average of the Over 60-day Delinquency
      Percentages for that Distribution Date and the two immediately preceding
      Distribution Dates.

     

    "Total
      Available Amount"
      means,
      for each Distribution Date, the sum of the aggregate collections in respect
      of
      Receivables (including any Liquidation Proceeds, any Purchase Amounts paid
      by
      the Depositor, CFSC or the Servicer and any amounts received from Dealers with
      respect to Receivables) received during the related Collection Period and
      Investment Earnings on the Trust Accounts during such Collection Period, but
      shall not include any payments or proceeds (including any Liquidation Proceeds
      and any amounts received from Dealers with respect to Receivables) of (i) any
      Receivables the Purchase Amount of which has been included in the Total
      Available Amount in a prior Collection Period, (ii) any Liquidated Receivable
      after and to the extent of the reassignment of such Liquidated Receivable by
      the
      Trust to the Depositor in accordance with Section 4.02 and (iii) any Additional
      Servicing Compensation.

     

    "Total
      Distribution Amount"
      means,
      with respect to any Distribution Date, the sum of (i) the Total Available
      Amount for such Distribution Date and (ii) the amount, if any withdrawn from
      the
      Reserve Account and deposited into the Collection Account on such Distribution
      Date pursuant to Section 5.05(b) on such Distribution Date.

     

    "Total
      Required Payment"
      means,
      for each Distribution Date, the amounts payable pursuant to Section 5.04(b)(i)
      through 5.04(b)(vi).

     

    "Transaction
      Equipment"
      means,
      collectively, the Financed Equipment and, if applicable, the
      Cross-Collateralized Equipment.

     

    "Transfer
      Date"
      means,
      with respect to any Distribution Date, the Business Day preceding such
      Distribution Date.

     

    "Trust"
      means
      the Issuing Entity.

     

    "Trust
      Account Property"
      means
      the Trust Accounts, all investment property, instruments, money and other
      property credited to or on deposit in any Trust Account from time to time,
      including the Reserve Account Initial Deposit, and all proceeds of the
      foregoing.

     

    "Trust
      Accounts"
      has the
      meaning specified in Section
      5.01(b).

     

    "Trust
      Agreement"
      means
      the Amended and Restated Trust Agreement, dated as of June 28, 2006,
      between the Depositor and the Owner Trustee, as the same may be amended,
      modified or supplemented from time to time.

     

    
      
        
        

      

      
        16

        
          

           

        

      

      
        
        

      

    

    "Trust
      Officer"
      means,
      in the case of (a) the Indenture Trustee, any officer within the Corporate
      Trust
      Office of the Indenture Trustee, including any Vice President, Assistant Vice
      President, Trust Officer, Secretary, Assistant Secretary or any other officer
      of
      the Indenture Trustee customarily performing functions similar to those
      performed by any of the above designated officers and also, with respect to
      a
      particular matter, any other officer to whom such matter is referred because
      of
      such officer’s knowledge of and familiarity with the particular subject, and (b)
      the Owner Trustee, any officer in the Corporate Trustee 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.

     

    "Write
      Down Amount"
      means,
      for any 180-Day Receivable, the excess of (i) the Contract Balance of such
      180-Day Receivable as of the last day of the Collection Period during which
      a
      Scheduled Payment on such Receivable became more than 180 days past its due
      date, as specified in the related Contract, over (ii) the estimated value of
      the
      Receivable, as determined by the Servicer in accordance with its servicing
      standards, to the extent allocable to principal in the same manner as a payment
      in such amount would be.

     

    SECTION
      1.02.    Other
      Definitional Provisions. 

     

               
      (a)   Capitalized terms used herein and not otherwise defined herein
      have the meanings assigned to them in the Indenture.

     

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

     

                               
      (c)  As used in this Agreement and in any document made or delivered
      pursuant hereto, accounting terms not defined in this Agreement or in any such
      other document, and accounting terms partly defined in this Agreement or in
      any
      such 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
      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 other document shall control.

     

                                
      (d)  The words "hereof," "herein," "hereunder," and words of similar import
      when used in this Agreement shall refer to this Agreement as a whole and not
      to
      any particular provision of this Agreement; Section, Schedule and Exhibit
      references contained in this Agreement are references to Sections, Schedules
      and
      Exhibits in or to this Agreement unless otherwise specified; the term
      "including" shall mean "including without limitation"; and the term "or" is
      not
      exclusive. Terms used herein that are defined in the New York UCC and not
      otherwise defined herein shall have the meanings set forth in the New York
      UCC,
      unless the contract requires otherwise.

     

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

     

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

      

     

     

    

    ARTICLE
      II

     

    CONVEYANCE
      OF RECEIVABLES

     

               
      SECTION 2.01.   Conveyance of Receivables.
      In
      consideration of the Issuing Entity's delivery to or upon the order of the
      Depositor of (i) Class A-1 Notes with an aggregate Outstanding Principal
      Amount of $246,100,000, (ii) Class A-2 Notes with an aggregate Outstanding
      Principal Amount of $250,000,000, (iii) Class A-3 Notes with an aggregate
      Outstanding Principal Amount of $302,000,000, (iv) Class A-4 Notes
      with an aggregate Outstanding Principal Amount of $136,460,000, (v) Class B
      Notes with an aggregate Outstanding Principal Amount of $26,560,000 and (vi)
      the
      Certificate with a Certificate Balance of $4,835,819 the Depositor does hereby
      sell, transfer, assign, set over and otherwise convey to the Issuing Entity,
      without recourse (subject to the obligations herein), all right, title and
      interest, whether now owned or hereafter acquired, of the Depositor in and
      to
      the following:

     

                                  
      (a)   the Receivables, and all monies (including accrued interest) due
      thereunder on or after the Cut-off Date;

     

                                  
      (b)   the
      Trust
      Account Property;

     

                                 
      (c)  the security interests in the Transaction Equipment granted by
      Obligors pursuant to the Receivables, the Transaction Equipment, and all
      Liquidation Proceeds;

     

    (d) all
      proceeds of repossessed or returned Transaction Equipment;

     

    (e) all
      proceeds with respect to the Receivables from claims on any physical damage,
      credit life, liability or disability insurance policies covering Financed
      Equipment or Obligors, as the case may be;

     

    (f) the
      Purchase Agreement, including the right of the Depositor to cause CFSC to
      repurchase Receivables from the Depositor as provided therein;

     

    (g) all
      proceeds from recourse to, or other payments by, Dealers on
      Receivables;

     

    (h) cash
      in
      the amount of the Reserve Account Initial Deposit; and

     

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

     

    It
      is the
      express intent of the parties hereto that the conveyance of the Receivables
      and
      the other property described above by the Depositor to the Issuing Entity as
      provided in this Agreement be, and be construed as, a sale of the Receivables
      and the other property described above by the Depositor to the Issuing Entity.
      It is, further, not the intention of the parties that such conveyance be deemed
      the grant of a security interest in the Receivables or the other property
      described above by the Depositor to the Issuing Entity to secure a debt or
      other
      obligation of the Depositor. However, in the event, notwithstanding the intent
      of the parties, the Receivables or the other property described above are held
      to be property of the Depositor, or if for any reason this Agreement is held
      or
      deemed to create a security interest in the Receivables or the other property
      described above then, (a) this Agreement shall be a security agreement
      within the meaning of Article 9 of the New York UCC and (b) the Depositor
      hereby grants to the Issuing Entity a security interest in all of the
      Depositor's right, title, and interest, whether now owned or hereafter acquired,
      in and to the property described in clauses (a) through (i) above, as security
      for the obligations of the Depositor hereunder. In connection herewith, the
      Issuing Entity (or its assignee) shall have all of the rights and remedies
      of a
      secured party under the UCC.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    Any
      assignment of the interest of the Issuing Entity pursuant to this Section
      2.01
      shall
      also be an assignment of the security interest created hereby. Each of the
      Depositor and the Issuing Entity shall, to the extent consistent with this
      Agreement, take such actions as may be necessary to ensure that, if this
      Agreement creates a security interest in the Receivables, such security interest
      would be a perfected security interest of first priority under applicable law
      and will be maintained as such throughout the term of the
      Agreement.

     

                   
      SECTION 2.02.   Closing.

     

    The
      conveyance of the Receivables and the other property described in Section 2.01
      shall take place on the Closing Date, simultaneously with the closing of the
      transactions contemplated by the Purchase Agreement, the underwriting agreements
      relating to the Notes and the other Basic Documents. Upon the delivery to or
      upon the order of the Depositor of the Notes and the Certificate, the ownership
      of each Receivable and the contents of the related Receivable File is vested
      in
      the Issuing Entity, subject only to the lien of the Indenture.

     

                  
      SECTION 2.03.   Books and Records.

     

    The
      transfer of each Receivable shall be reflected on the Depositor's balance sheets
      and other financial statements prepared in accordance with generally accepted
      accounting principles as a transfer of assets by the Depositor to the Issuing
      Entity. The Depositor shall be responsible for maintaining, and shall maintain,
      a complete and accurate set of books and records and computer files for each
      Receivable which shall be clearly marked to reflect the ownership of each
      Receivable by the Issuing Entity.

     

     

    ARTICLE
      III

     

    THE
      RECEIVABLES

     

                  
      SECTION 3.01. Representations and Warranties of Depositor.
      The
      Depositor hereby makes the following representations and warranties as to the
      Receivables on which the Issuing Entity is deemed to have relied in acquiring
      the Receivables. Such representations and warranties speak as of the execution
      and delivery of this Agreement, but shall survive the sale, transfer and
      assignment of the Receivables to the Issuing Entity and the grant of a security
      interest therein to the Indenture Trustee pursuant to the
      Indenture.

     

                                 
      (a)   Title.
      It is
      the intention of the Depositor that the transfer and assignment herein
      contemplated constitute a sale of the Receivables from the Depositor to the
      Issuing Entity and that the beneficial interest in and title to such Receivables
      not be part of the debtor's estate in the event of the filing of a bankruptcy
      petition by or against the Depositor under any bankruptcy law. No Receivable
      has
      been sold, transferred, assigned or pledged by the Depositor to any Person
      other
      than the Issuing Entity. Immediately prior to the transfer and assignment herein
      contemplated, the Depositor owns and has good and marketable title to the
      Receivables free and clear of any Lien, claim or encumbrance of any Person
      and,
      immediately upon the transfer thereof, the Issuing Entity shall have good and
      marketable title to each such Receivable, free and clear of all Liens and rights
      of others; and the transfer has been perfected under the UCC.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

       

                                
         (b)  Priority.
        Other
        than the security interest granted to the Issuing Entity pursuant to this
        Agreement, the Depositor has not pledged, assigned, sold, granted a security
        interest in, or otherwise conveyed any of the Receivables. The Depositor
        has not
        authorized the filing of and is not aware of any financing statement against
        the
        Depositor that includes a description of collateral covering the Receivables
        other than any financing statement relating to the security interest granted
        to
        the Issuing Entity hereunder or that has been terminated. The Depositor is
        not
        aware of any judgment or tax lien filings against the Depositor. None of
        the
        Contracts that constitute or evidence the Receivables has any mark or notation
        indicating that it has been pledged, assigned or otherwise conveyed by the
        Depositor to any Person other than the Issuing Entity or the Indenture
        Trustee.

       

                                    
(c)   Security
        Interest.
        This
        Agreement creates a valid and continuing security interest (as defined in
        the
        UCC) in the Receivables and the proceeds thereof in favor of the Issuing
        Entity,
        which security interest is prior to all other Liens, and is enforceable as
        such
        against creditors of and purchasers from the Depositor.

    

     

    (d) 
      Characterization of Receivables.
      The
      Receivables constitute "tangible chattel paper" within the meaning of the
      UCC.

     

                                   
      (e)  All Actions Taken.
      On the
      Delivery Date all original executed copies of each Contract that constitute
      or
      evidence the Receivables will be delivered to the Custodian. The Depositor
      will
      cause the Custodian to deliver a written acknowledgment that the Custodian
      is
      holding the Receivable Files solely on behalf and for the benefit of the Issuing
      Entity. The Depositor has caused or will have caused, within 10 days of the
      Closing Date, the filing of all appropriate financing statements in the proper
      filing office in the appropriate jurisdiction under applicable law in order
      to
      perfect the security interest in the Receivables granted to the Issuing Entity
      hereunder. All actions necessary in any jurisdiction to be taken to give (i)
      the
      Issuing Entity a first priority perfected ownership or security interest in
      the
      Receivables (exclusive of Receivables for which a governmental entity is the
      Obligor) and (ii) the Indenture Trustee a first priority perfected security
      interest therein (including UCC filings with the Nevada Secretaries of State)
      have been taken or will be taken within 10 days of the Closing
      Date.

     

                                  
      (f)  Possession of Receivable Files.
      All of
      the Receivable Files have been or will be delivered to the Custodian within
      30
      days of the Closing Date, subject to Section
      3.05(b).

     

    (g)  Perfection
      of Security Interest in Financed Equipment.
      The
      Depositor has taken all steps necessary to perfect its security interest against
      the Obligors in the property securing the Contracts.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

       

                                   
        (h)  No Consents Required.
        All
        approvals, authorizations, consents, orders or other actions of any Person
        or of
        any Governmental Authority required in connection with the execution and
        delivery by the Depositor of this Agreement or any other Basic Document,
        the
        performance by the Depositor of the transactions contemplated by this Agreement
        or any other Basic Document and the fulfillment by the Depositor of the terms
        hereof or thereof, have been obtained or have been completed and are in full
        force and effect (other than approvals, authorizations, consents, orders
        or
        other actions which if not obtained or completed or in full force and effect
        would not have a material adverse effect on the Depositor or the Issuing
        Entity
        or upon the collectability of any Receivable or upon the ability of the
        Depositor to perform its obligations under this Agreement).

    

     

                  
      SECTION 3.02.  Repurchase by Depositor or CFSC Upon
      Breach.
      

     

                               
      (a)  The Depositor, the Servicer or the Owner Trustee, as the case may be,
      shall inform the other parties to this Agreement, CFSC and the Indenture Trustee
      promptly, in writing, upon the discovery of any breach of the Depositor's
      representations and warranties made pursuant to Section
      3.01
      or any
      breach of CFSC's representations and warranties made pursuant to Section 3.02(b)
      of the Purchase Agreement. Unless any such breach shall have been cured by
      the
      last day of the second month following the month of the discovery thereof by
      the
      Depositor or receipt by the Depositor of written notice from the Owner Trustee
      or the Servicer of such breach, the Depositor shall be obligated, and, if
      necessary, the Depositor or the Owner Trustee shall enforce the obligation
      of
      CFSC, if any, under Section 6.02(a)(i) of the Purchase Agreement, to repurchase
      any Receivable materially and adversely affected by any such breach as of such
      last day (or, at the Depositor's option, as of the last day of the first month
      following the month of the discovery).

     

                                 (b) 
      In consideration of the repurchase of the Receivable, the Depositor shall remit
      the Purchase Amount with respect to such Receivable in the manner specified
      in
Section
      5.03;
      provided,
      however,
      that
      the obligation of the Depositor to repurchase any Receivable arising solely
      as a
      result of a breach of CFSC's representations and warranties pursuant to Section
      3.02(b) of the Purchase Agreement is subject to the receipt by the Depositor
      of
      the Purchase Amount from CFSC. Subject to the provisions of Section
      6.02,
      the
      sole remedy of the Issuing Entity, the Owner Trustee, the Indenture Trustee,
      the
      Noteholders or the Certificateholder with respect to a breach of representations
      and warranties pursuant to Section
      3.01,
      Section
      3.02(b) of the Purchase Agreement and the agreement contained in this Section
      shall be to require the Depositor to repurchase Receivables pursuant to this
      Section, subject to the conditions contained herein, or to enforce CFSC's
      obligation, if any, to the Depositor to repurchase such Receivables pursuant
      to
      the Purchase Agreement. The Owner Trustee shall have no duty to conduct any
      affirmative investigation as to the occurrence of any condition requiring the
      repurchase of any Receivable pursuant to this Section.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

       

                     
        SECTION 3.03.  Custody of Receivable Files.
        The
        Depositor, the Issuing Entity and the Indenture Trustee have appointed the
        Custodian pursuant to the Custodial Agreement, and the Custodian has thereby
        accepted such appointment, to act as custodian of the documents described
        in the
        definition of Receivable File.

    

     

                   
      SECTION 3.04.  Duties of Servicer.

     

                               
      (a)  Receivable Files.
      The
      Servicer shall maintain such accurate and complete accounts, records and
      computer systems pertaining to each Receivable File as shall enable itself
      and
      the Issuing Entity to comply with this Agreement. In performing its duties,
      the
      Servicer shall act with reasonable care, using that degree of skill and
      attention that the Servicer exercises with respect to the receivable files
      relating to all comparable receivables that the Servicer services for itself
      or
      others. The Servicer shall conduct, or cause to be conducted, periodic audits
      of
      the related accounts, records and computer systems, in such a manner as shall
      enable the Issuing Entity or the Indenture Trustee to verify the accuracy of
      the
      Servicer's record keeping. The Servicer shall promptly report to the Issuing
      Entity and the Indenture Trustee any failure on its part to 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 by the Issuing Entity, the
      Owner Trustee or the Indenture Trustee.

     

                               
      (b)  Access to Records.
      The
      Servicer shall notify the Owner Trustee and the Indenture Trustee of any change
      in the location of its principal place of business in writing not later than
      90
      days after any such change. The Servicer shall make available to the Owner
      Trustee and the Indenture Trustee, or their respective duly authorized
      representatives, attorneys or auditors, a list of locations of the related
      accounts, records and computer systems maintained by the Servicer at such times
      as the Owner Trustee or the Indenture Trustee shall instruct. The Indenture
      Trustee shall have access to such accounts, records and computer
      systems.

     

                               
      (c)  Safekeeping.
      The
      Servicer shall hold, or cause to be held, on behalf of the Issuing Entity (i)
      all file stamped copies of UCC financing statements evidencing the security
      interest of the Issuing Entity in Transaction Equipment and (ii) any and all
      documents, other than the Receivable Files, that CFSC or the Depositor shall
      keep on file, in accordance with its customary procedures, relating to a
      Receivable, an Obligor or Transaction Equipment, and shall maintain such
      accurate and complete records pertaining to each Receivable as shall enable
      the
      Issuing Entity to comply with this Agreement. Upon instruction from the
      Indenture Trustee, the Servicer shall release any such UCC filing or other
      document to the Indenture Trustee, the Indenture Trustee's agent, or the
      Indenture Trustee's designee, as the case may be, at such place or places as
      the
      Indenture Trustee may designate, as soon as practicable.

     

                     
      SECTION 3.05.   Acceptance by Issuing Entity and the Indenture
      Trustee of the Receivables; Certification by the Indenture
      Trustee.

     

                              
      (a)  The Issuing Entity hereby acknowledges and declares that on the
      Delivery Date the Custodian will hold the Receivable Files for the benefit
      of
      the Indenture Trustee, subject to the terms and conditions of the Indenture
      and
      this Agreement. By its acknowledgment of this Agreement, the Custodian agrees
      that it will execute and deliver the Custodian Certifications (as defined in
      the
      Custodial Agreement) described in Sections
      3.1
      and
4.1
      of the
      Custodial Agreement. Prior to delivering the Receivable Files to the Custodian,
      the Servicer agrees to review (or cause to be reviewed) each Receivable File.
      The Indenture Trustee shall be under no duty or obligation to inspect, review
      or
      examine any such documents, instruments, certificates or other papers to
      determine that they are genuine, enforceable, or appropriate for the represented
      purpose or that they are other than what they purport to be on their face.
      On
      the Delivery Date the Servicer shall deliver to the Depositor, the Issuing
      Entity, the Indenture Trustee, the Owner Trustee and each Rating Agency, a
      certification in the form attached as Schedule
      C
      to the
      effect that, as to each Receivable (other than any Receivable paid in full
      or
      any Receivable specifically identified in such certification as not covered
      by
      such certification): (i) all documents required to be delivered to the Custodian
      pursuant to this Agreement (including each of the items in the definition of
      Receivable File) have been delivered to the Custodian, (ii) such documents
      have
      been reviewed by it and have not been mutilated, damaged, torn or otherwise
      physically altered (handwritten additions, changes or corrections shall not
      constitute physical alteration if initialed by the Obligor) and relate to such
      Receivable, and (iii) based on its examination, and only as to the foregoing
      documents, the information set forth on the Schedule of Receivables accurately
      reflects the information set forth in the Receivable Files.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

       

                                   
        (b)  The Depositor agrees to use reasonable efforts to (i) in connection
        with the delivery of the Receivable Files on the Delivery Date, cause to
        be
        delivered to the Custodian, any Receivable File that the Custodian determines
        is
        missing pursuant to Section
        4.1
        of the
        Custodial Agreement and (ii) cause to be remedied a material defect in a
        document constituting part of a Receivable File. If, however, the Depositor
        has
        not caused (A) such missing Receivable File to be delivered or (B) to be
        remedied any defect by the last day of the second month following the month
        of
        the Delivery Date, and such defect materially and adversely affects the
        interests of the Noteholders or the Certificateholder in the related Receivable,
        the Depositor shall remit the Purchase Amount in the manner specified in
        Section 5.03.
        The
        obligation of the Depositor to repurchase any Receivable is subject to the
        receipt by the Depositor of the Purchase Amount from CFSC in accordance with
        the
        terms of the Purchase Agreement. Subject to the provisions of Section
        5.03,
        the
        sole remedy of the Issuing Entity, the Owner Trustee, the Indenture Trustee,
        the
        Noteholders or the Certificateholder with respect to such missing Receivable
        File or such a defect and the agreement contained in this Section shall be
        to
        require the Depositor to repurchase Receivables pursuant to this Section,
        subject to the conditions contained herein, or to enforce CFSC's obligation
        to
        the Depositor, if any, to repurchase such Receivables pursuant to the Purchase
        Agreement. The Owner Trustee shall have no duty to conduct any affirmative
        investigation as to the occurrence of any condition requiring the repurchase
        of
        any Receivable pursuant to this Section.

    

     

                                
      (c)  Upon receipt by the Indenture Trustee of a certification of the
      Servicer of a repurchase of a Receivable described in Section
      3.05(b)
      and
      receipt of the Purchase Amount, the Indenture Trustee is required to release
      to
      CFSC the related Receivable File and shall execute, without recourse, and
      deliver such instruments of transfer as may be necessary to transfer such
      Receivable to CFSC.

     

    
      
        
        

      

      
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    ARTICLE
      IV

     

    ADMINISTRATION
      AND SERVICING OF RECEIVABLES

     

                   
      SECTION 4.01.  Duties of Servicer.
      The
      Issuing Entity hereby engages the Servicer and the Servicer hereby agrees to
      manage, service, administer and make collections on the Receivables (other
      than
      Purchased Receivables) with reasonable care, using that degree of skill and
      attention that the Servicer exercises with respect to all comparable receivables
      that it services for itself or others. The Servicer's duties shall include
      calculating, billing, collection and posting of all payments, responding to
      inquiries of Obligors on such Receivables, investigating delinquencies,
      reporting tax information to Obligors (to the extent required under the related
      Contracts), accounting for collections, and furnishing servicer reports to
      the
      Owner Trustee and the Indenture Trustee with respect to distributions. Subject
      to the provisions of Section
      4.02,
      the
      Servicer shall follow its customary standards, policies and procedures in
      performing its duties as Servicer. Without limiting the generality of the
      foregoing, the Servicer is authorized and empowered to execute and deliver,
      on
      behalf of itself, the Issuing Entity, the Owner Trustee, the Indenture Trustee,
      the Certificateholder and the Noteholders or any of them, any and all
      instruments of satisfaction or cancellation, or partial or full release or
      discharge, and all other comparable instruments, with respect to such
      Receivables or to the Transaction Equipment securing such Receivables. If the
      Servicer shall commence a legal proceeding to enforce a Receivable, the Issuing
      Entity (in the case of a Receivable other than a Purchased Receivable) shall
      thereupon be deemed to have automatically assigned, solely for the purpose
      of
      collection, such Receivable to the Servicer. If in any enforcement suit or
      legal
      proceeding it shall be held that the Servicer may not enforce a Receivable
      on
      the ground that it shall not be a real party in interest or a holder entitled
      to
      enforce such Receivable, the Owner Trustee shall, at the Servicer's expense
      and
      direction, take steps to enforce such Receivable, including bringing suit in
      its
      name or the name of the Issuing Entity, the Indenture Trustee, the
      Certificateholder or the Noteholders. The Owner Trustee shall, upon the written
      request of the Servicer, furnish the Servicer with any powers of attorney and
      other documents reasonably necessary or appropriate to enable the Servicer
      to
      carry out its servicing and administrative duties hereunder. The Servicer shall
      prepare, execute or cause to be executed and deliver all certificates or other
      documents required to be delivered by the Issuing Entity pursuant to the
      Sarbanes-Oxley Act of 2002 or the rules and regulations promulgated thereunder.
      The Servicer shall determine the estimated value of any Receivable as to which
      a
      Scheduled Payment is more than 180 days past its due date as of the last day
      of
      a Collection Period during or prior to the immediately following Collection
      Period.

     

                   
      SECTION 4.02.  Collection of Receivable Payments.
      

     

                                 (a) 
      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 machinery receivables that it services for itself
      or
      others. The Servicer shall not reduce the principal balance of, reduce the
      APR
      of, reduce the aggregate amount of Scheduled Payments or the amount of any
      Scheduled Payment due under any Receivable, release or modify the security
      interest in the Financed Equipment securing such Receivable, or otherwise amend
      or modify a Receivable in a manner that would have a material adverse effect
      on
      the interests of the Noteholders. Notwithstanding the foregoing, the Servicer
      may grant extensions on a Receivable; provided,
      however,
      that if
      the Servicer extends the due date of any Scheduled Payment to a date beyond
      the
      Class B Note Final Scheduled Distribution Date, it shall promptly purchase
      the
      Receivable from the Issuing Entity in accordance with the terms of Section
      4.07.
      To the
      extent not otherwise required by applicable law or the applicable Contract,
      the
      Servicer shall allocate payments made by or on behalf of the Obligor with
      respect to the Receivables first to any overdue Scheduled Payment (including
      taxes and miscellaneous billables), second to the current Scheduled Payment
      (including taxes and miscellaneous billables) and third to late fees. The
      Servicer may in its discretion waive any other amounts of Additional Servicing
      Compensation that may be collected in the ordinary course of servicing a
      Receivable. Notwithstanding anything in this Agreement to the contrary, in
      the
      event that a Receivable becomes a Liquidated Receivable, any Recoveries relating
      thereto shall be paid to the Depositor and such Liquidated Receivable shall
      be
      assigned by the Issuing Entity to the Depositor.

     

    
      
        
        

      

      
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        (b)  Notwithstanding anything in this Agreement to the contrary (but
        subject to the immediately succeeding sentence), the Servicer may refinance
        any
        Receivable only if (i) the related Obligor executes a new installment sales
        contract or lease and (ii) the proceeds of such refinancing are used to pre-pay
        all obligations in full of such Obligor under such Receivable (which amount
        shall be applied in accordance with Section
        5.02).
        The
        new receivable created by the refinancing shall not be property of the Issuing
        Entity. The parties hereto intend that the Servicer will not refinance a
        Receivable pursuant to this Section
        4.02(b)
        in order
        to provide direct or indirect assurance to the Depositor, the Indenture Trustee,
        the Owner Trustee, the Noteholders, or the Certificateholder, as applicable,
        against loss by reason of the bankruptcy or insolvency (or other credit
        condition) of, or default by, the Obligor on, or the uncollectability of,
        any
        Receivable.

    

     

                    
      SECTION 4.03.  Realization upon Receivables.
      On
      behalf of the Issuing Entity, the Servicer shall use its best efforts,
      consistent with its customary servicing procedures, to repossess or otherwise
      realize upon the Transaction Equipment securing any Receivable as to which
      the
      Servicer shall have determined eventual payment in full is unlikely or, with
      respect to Financed Equipment relating to any Lease, as to which the related
      Obligor has returned the Financed Equipment. The Servicer shall follow such
      customary and usual practices and procedures as it shall deem necessary or
      advisable in its servicing of comparable receivables, which may include selling
      the Transaction Equipment at public or private sale. The foregoing shall be
      subject to the provision that, in any case in which any item of Transaction
      Equipment shall have suffered damage, the Servicer shall not expend funds in
      connection with the repair or the repossession of such Transaction Equipment
      unless it shall determine in its discretion that such repair or repossession
      will increase the Liquidation Proceeds by an amount greater than the amount
      of
      such expenses.

     

                    
      SECTION 4.04.  Physical Damage Insurance.
      The
      Servicer shall, in accordance with its customary servicing procedures, require
      that each Obligor shall have obtained physical damage insurance covering the
      Transaction Equipment as of the execution of the Receivable.

     

                     SECTION
      4.05.  Maintenance of Security Interests in Financed
      Equipment.
      The
      Servicer shall, in accordance with its customary servicing procedures, take
      such
      steps as are necessary to maintain perfection of the security interest created
      by each Receivable (including each Receivable on which a governmental entity
      is
      the Obligor) in the related Financed Equipment. The Servicer is hereby
      authorized to take such steps as are necessary to re-perfect such security
      interest or to maintain such perfected security interest on behalf of the
      Issuing Entity and the Indenture Trustee in the event of the relocation of
      the
      Obligor, or for any other reason.

     

    
      
        
        

      

      
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        SECTION 4.06.  Covenants of Servicer.
        The
        Servicer shall not: (i) release the Transaction Equipment securing any
        Receivable from the security interest granted by such Receivable in whole
        or in
        part or modify such security interest except (A) in accordance with Section
        4.03
        or (B)
        in the event of payment in full by the Obligor thereunder; (ii) impair the
        rights of the Issuing Entity, the Indenture Trustee, the Certificateholder
        or
        the Noteholders in any Receivable; (iii) modify or refinance a Receivable
        except
        in accordance with the terms of Section 4.02;
        or (iv)
        fail to return a Receivable File released to it pursuant to Section
        3.3
        of the
        Custodial Agreement within five Business Days of such
        release.

    

     

                  SECTION
      4.07.  Purchase by Servicer of Receivables upon Breach.
      The
      Servicer or the Owner Trustee shall inform the other party and the Indenture
      Trustee, the Depositor and CFSC promptly, in writing, upon the discovery of
      any
      breach pursuant to Section
      4.02,
      4.05
      or
4.06.
      Unless
      the breach shall have been cured by the last day of the second month following
      such discovery (or, at the Servicer's election, the last day of the first
      following month) (except for the failure to return a released Receivable File,
      for which there is no grace period beyond the specified five Business Days),
      the
      Servicer shall purchase any Receivable materially and adversely affected by
      such
      breach. If the Servicer takes any action pursuant to Section
      4.02
      that
      impairs the rights of the Issuing Entity, the Indenture Trustee, the
      Certificateholder or the Noteholders in any Receivable or as otherwise provided
      in Section
      4.02,
      the
      Servicer shall purchase such Receivable. In consideration of the purchase of
      any
      such Receivable pursuant to either of the two preceding sentences, the Servicer
      shall remit the Purchase Amount in the manner specified in Section
      5.03.
      Subject
      to Section
      7.02,
      the
      sole remedy of the Issuing Entity, the Owner Trustee, the Indenture Trustee,
      the
      Certificateholder or the Noteholders with respect to a breach pursuant to
Section
      4.02,
      4.05
      or
4.06
      shall be
      to require the Servicer to purchase Receivables pursuant to this Section. The
      Owner Trustee shall have no duty to conduct any affirmative investigation as
      to
      the occurrence of any condition requiring the purchase of any Receivable
      pursuant to this Section. The parties hereto intend that the Servicer will
      not
      intentionally breach or cause a breach pursuant to Section
      4.02,
      4.05
      or
4.06
      in order
      to provide direct or indirect assurance to the Depositor, the Indenture Trustee,
      the Owner Trustee, the Noteholders, or the Certificateholder, as applicable,
      against loss by reason of the bankruptcy or insolvency (or other credit
      condition) of, or default by, the Obligor on, or the uncollectability of, any
      Receivable.

     

                    
      SECTION 4.08.  Servicing Fee.
      On each
      Distribution Date, the Servicer shall be entitled to receive the Servicing
      Fee
      in respect of the immediately preceding Collection Period equal to the product
      of (a) one-twelfth of the Servicing Fee Rate and (b) the Note Value as of the
      first day of such preceding Collection Period. The Servicer shall also be
      entitled to any Additional Servicing Compensation with respect to Receivables,
      collected (from whatever source) on the Receivables, which Additional Servicing
      Compensation shall be paid to the Servicer pursuant to Section
      5.07.
      

     

    
      
        
        

      

      
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        SECTION 4.09.  Servicer Report.
        On each
        Determination Date, the Servicer shall deliver to the Administrator, the
        Owner
        Trustee, the Paying Agent as defined in the Trust Agreement, the Indenture
        Trustee and the Depositor, with a copy to the Rating Agencies, a Servicer
        Report
        containing all information necessary to make the distributions pursuant to
        Sections
        5.04,
        5.05
        and
5.06
        for the
        Collection Period preceding the date of such Servicer Report. The Servicer
        Report shall be substantially in the form of Schedule D (or such other form
        as is acceptable to the Indenture Trustee, the Owner Trustee and the Servicer).
        Neither the Owner Trustee nor the Indenture Trustee shall be required to
        determine, confirm or recalculate the information contained in the Servicer
        Report. Receivables to be purchased by the Servicer or to be repurchased
        by the
        Depositor or CSFC shall be identified by the Servicer by account number with
        respect to such Receivable as specified in Schedule
        A.

    

     

                    
      SECTION 4.10.  Annual Statement as to Compliance; Notice of
      Default.
      

     

                              
      (a)  The Servicer shall deliver to each of the Owner Trustee, the Indenture
      Trustee and the Rating Agencies, on or before the earlier of (1) April 30 of
      each year or (2) with respect to any calendar year during which the Issuing
      Entity's Annual Report on Form 10-K is required to be filed in accordance with
      the Exchange Act and the rules and regulations of the Commission, the date
      on
      which the Annual Report on Form 10-K is required to be filed in accordance
      with
      the Exchange Act and the rules and regulations of the Commission, a servicer
      compliance statement, signed by an authorized officer of the Servicer, as
      described in Item 1123 of Regulation AB, to the effect that:

                                                 (i) 
      A review of the Servicer's activities during the preceding 12-month period
      ended
      December 31 (or in the case
      of
      the initial statement, the period from the Closing Date to December 31) and
      of
      its performance under this
      Agreement has been made under such officer's supervision; and

     

                                                (ii) 
      To the best of such officer's knowledge, based on such review, the Servicer
      has
      fulfilled all of its obligations under this Agreement in all material respects
      throughout the reporting period or, if there has been a failure to fulfill
      any
      such obligation in any material respect, specifying each such failure known
      to
      such officer and the nature and status thereof.

     

                              
      (b)  The Servicer shall use commercially reasonable efforts to obtain from
      all other parties participating in the servicing function any additional
      certifications required under Item 1123 of Regulation AB to the extent required
      to be included in the Issuing Entity’s Annual Report on Form 10-K; provided,
      however, that a failure to obtain such certifications shall not be a breach
      of
      the Servicer's duties hereunder if any such party fails to deliver such a
      certification.

     

                             
      (c)  The Indenture Trustee shall send a copy of such certificate and the
      accountants' attestation referred to in Section
      4.11
      to the
      Rating Agencies. A copy of such certificate and the accountants' attestation
      referred to in Section
      4.11
      may be
      obtained by any Certificateholder by a request in writing to the Owner Trustee
      at its address in Section
      10.03.

     

                            
      (d)  The Servicer shall deliver to the Owner Trustee, the Indenture Trustee
      and the Rating Agencies, promptly after having obtained knowledge thereof,
      but
      in no event later than five Business Days thereafter, written notice in an
      Officers' Certificate of any event which with the giving of notice or lapse
      of
      time, or both, would become a Servicer Default under Section
      8.01(a)
      or
(b).

     

    
      
        
        

      

      
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        SECTION 4.11.  Annual Independent Certified Public Accountants'
        Attestation.
        In
        order to confirm that the servicing of the Receivables has been conducted
        in
        compliance with the terms of this Agreement and to comply with the applicable
        provisions of Regulation AB, the Servicer shall deliver or shall cause a
        firm of
        independent certified public accountants, which may also render other services
        to the Servicer, the Depositor or CFSC, to deliver to the Owner Trustee and
        the
        Indenture Trustee on or before the earlier of (a) April 30 of each year or
        (b)
        with respect to any calendar year during which the Issuing Entity's Annual
        Report on Form 10-K is required to be filed in accordance with the Exchange
        Act
        and the rules and regulations of the Commission, the date on which the Annual
        Report on Form 10-K is required to be filed in accordance with the Exchange
        Act
        and the rules and regulations of the Commission, the attestation required
        under
        Item 1122(b) of Regulation AB. 

    

     

                  
      SECTION 4.12.  Servicer Expenses.
      The
      Servicer shall be required to pay all expenses incurred by it in connection
      with
      its activities hereunder, including fees and disbursements of independent
      accountants, taxes imposed on the Servicer and expenses incurred in connection
      with distributions and reports to the Owner Trustee, the Indenture Trustee,
      the
      Certificateholder and the Noteholders.

     

                    
      SECTION 4.13.  Reports to the Commission.

     

                               
      (a)  The Servicer shall cause to be filed with the Commission any periodic
      reports required to be filed by the Issuing Entity under the provisions of
      the
      Exchange Act, and the rules and regulations of the Commission thereunder
      including, without limitation, reports on Form 10-K, Form 10-D and Form 8-K.
      The
      Depositor shall, at its expense, cooperate in any reasonable request made by
      the
      Servicer in connection with such filings.

     

                               
      (b)  Any Form 10-K filed with the Commission in connection with this
      Section 4.13 shall include, with respect to the Notes:

                                         
      (i)  A certification, signed by the senior officer in charge of the
      servicing functions of the Servicer, in the form required or permitted by the
      Commission (the "Form 10-K Certification"), in compliance with Rules 13a-14
      and
      15d-14 under the Exchange Act and any additional directives of the
      Commission.

     

                                        
      (ii)  A report regarding its assessment of compliance during the preceding
      calendar year with all applicable servicing criteria set forth in
      Item 1122(d) of Regulation AB with respect to transactions involving the
      Servicer that are backed by the same types of assets as those backing the Notes,
      as well as similar reports on assessment of compliance received from other
      parties participating in the servicing function as required by Item 1122(a)
      of
      Regulation AB. 

     

                                        
      (iii)  With respect to each assessment report described immediately above,
      a report by a registered public accounting firm that attests to, and reports
      on,
      the assessment made by the asserting party, as set forth in relevant Commission
      regulations, as described in Regulation 1122(b) of Regulation AB and Section
      4.11.

     

    
      
        
        

      

      
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        (iv)  The servicer compliance statement required to be delivered pursuant
        Section 4.10.

    

     

                               
      (c)  The Servicer shall use commercially reasonable efforts to obtain from
      all other parties participating in the servicing function any required
      assessment report and related accountants' attestation to the extent required
      to
      be included in the Issuing Entity’s Annual Report on Form 10-K; provided,
      however, that a failure to obtain such certifications shall not be a breach
      of
      the Servicer's duties hereunder if any such party fails to deliver such a report
      or attestation.

     

     

    ARTICLE
      V

     

    DISTRIBUTIONS;
      RESERVE ACCOUNT;

    CERTIFICATEHOLDER
      AND NOTEHOLDER INFORMATION

     

                       
      SECTION 5.01.  Establishment of Trust Accounts.

     

                                   
      (a) (i) The Servicer,
      for the
      benefit of the Noteholders and the Certificateholder, shall establish and
      maintain in the name of the Indenture Trustee an Eligible Securities Account
      (the "Collection Account"), which is U.S. Bank National Association Account
      #103403001 as of the Closing Date. The Indenture Trustee shall establish and
      maintain an administrative subaccount within the Collection Account for the
      benefit of the Noteholders and the Certificateholder (the "Principal
      Distribution Account"), which is U.S. Bank National Association Account
      #103403002 as of the Closing Date.

     

                                         
       (ii)  The Servicer, for the benefit of the Noteholders, shall
      establish and maintain in the name of the Indenture Trustee an Eligible
      Securities Account (the "Reserve Account"), which is U.S. Bank National
      Association Account #103403003 as of the Closing Date.

     

                                 
      (b)  Funds on deposit in the Collection Account (including the Principal
      Distribution Account) and the Reserve Account (collectively, the "Trust
      Accounts") shall be invested by the Indenture Trustee in Eligible Investments
      selected by the Servicer; provided,
      however,
      it is
      understood and agreed that the Indenture Trustee shall not be liable for any
      loss arising from such investment in Eligible Investments (other than losses
      from nonpayment of investments in obligations of the institution acting as
      Indenture Trustee). All such Eligible Investments shall be held by the Indenture
      Trustee for the benefit of the applicable Noteholders and, if applicable, the
      Certificateholder. Other than as permitted by the Rating Agencies, funds
      credited to or on deposit in the Trust Accounts shall be invested in Eligible
      Investments that will mature so that such funds will be available at the close
      of business on the Transfer Date preceding the immediately following
      Distribution Date; provided,
      however,
      that
      funds credited to or on deposit in Trust Accounts may be invested in Eligible
      Investments of the Indenture Trustee which may mature so that such funds will
      be
      available on the Distribution Date. Funds credited to or deposited in a Trust
      Account on a Transfer Date which immediately precedes a Distribution Date upon
      the maturity of any Eligible Investments are not required to be invested
      overnight, but if so invested, such investments must meet the conditions of
      the
      immediately preceding sentence.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

       

                                         
        (c)  (i)The
        Trust
        Accounts shall be under the control of the Indenture Trustee. If, at any
        time,
        any of the Trust Accounts ceases to be an Eligible Securities Account, the
        Indenture Trustee (or the Servicer on its behalf) shall within 10 Business
        Days
        (or such longer period, not to exceed 30 calendar days, as to which each
        Rating
        Agency may consent) establish a new Trust Account as an Eligible Securities
        Account and shall transfer any cash or any investments to such new Trust
        Account. So long as U.S. Bank National Association is an Eligible Institution,
        any Trust Account may be maintained with it as an Eligible Securities
        Account.

    

          
      

                                              
      (ii) With
      respect to the Trust Account Property, the Indenture Trustee and U.S. Bank
      National Association, as Securities Intermediary, agree, and each subsequent
      Securities Intermediary shall agree, by its acceptance hereof,
      that:

     

    (A)
      any
      Trust Account Property held in securities accounts shall be held solely in
      the
      Eligible Securities Accounts; and each such Eligible Securities Account shall
      be
      subject to the control of the Indenture Trustee, and the Indenture Trustee
      shall
      have sole signature authority with respect thereto;

     

    (B)
      all
      Trust Account Property shall be delivered to the Indenture Trustee by causing
      the financial institution then maintaining the related Trust Account (each
      such
      institution being referred to herein as a "Securities Intermediary") to indicate
      by book-entry that the financial asset related to such Trust Account Property
      has been credited to such Trust Account. Each Trust Account shall only be
      established at a financial institution which agrees (i) to comply with
      entitlement orders with respect to such Trust Account issued by the Indenture
      Trustee without further consent of the Depositor, the Servicer or the Issuing
      Entity and (ii) that each item of property credited to such Trust Account shall
      be treated as a financial asset, and the Securities Intermediary does hereby
      agree to the foregoing; and

     

    (C)
      Upon
      release of the lien of the Indenture Trustee under the Indenture in accordance
      with the terms thereof, each of the Trust Accounts shall be put in the name
      of
      the Issuing Entity and the Issuing Entity shall have all rights granted to
      the
      Indenture Trustee pursuant to this Agreement.

     
      

                                           
      (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 Trust 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.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

                                            
      (iv) The
      Indenture Trustee is hereby authorized to execute purchase and sales directed
      by
      the Servicer through the facilities of its own trading or capital markets
      operations. The Indenture Trustee shall send statements to the Servicer and
      the
      Issuing Entity monthly reflecting activity for each account created hereunder
      for the preceding month. Although the Issuing Entity recognizes that it may
      obtain a broker confirmation at no additional cost, the Issuing Entity hereby
      agrees that confirmations of investments are not required to be issued by the
      Indenture Trustee for each month in which a monthly statement is rendered.
      No
      statement need be rendered pursuant to the provision hereof if no activity
      occurred in the account for such month.

     

                     
      SECTION 5.02.  Collections.
      Subject
      to Section
      5.03,
      the
      Servicer shall remit to the Collection Account (i) all payments by or on behalf
      of the Obligors with respect to the Receivables (other than Purchased
      Receivables) and (ii) all Liquidation Proceeds, in each case as collected during
      each Collection Period within two Business Days of receipt and identification
      thereof. Notwithstanding the foregoing, if (i) CFSC is the Servicer, (ii) a
      Servicer Default shall not have occurred and be continuing and (iii) CFSC
      maintains a short-term rating of at least "A-1" by Standard & Poor's and
      "Prime-1" by Moody's, the Servicer may remit such collections with respect
      to
      each Collection Period to the Collection Account on or before the second
      Business Day prior to the following Distribution Date. For purposes of this
      Article V, the phrase "payments by or on behalf of Obligors" shall mean payments
      made with respect to the Receivables by Persons other than the Servicer or
      CFSC.

     

                      
      SECTION 5.03.  Additional Deposits.
      

     

                                 
      (a)  The Servicer and the Depositor shall deposit or cause to be deposited
      in the Collection Account the Purchase Amounts with respect to Purchased
      Receivables as set forth in the immediately following sentence, and the Servicer
      shall deposit in the Collection Account all amounts to be paid under
Section
      9.01
      as set
      forth therein. The Servicer and the Depositor will deposit the Purchase Amount
      with respect to each Purchased Receivable when such obligations are due, unless,
      with respect to Purchase Amounts to be remitted by the Servicer, the Servicer
      shall be permitted to make deposits monthly prior to each Distribution Date
      pursuant to Section
      5.02,
      in
      which case such deposits shall be made in accordance with such Section. The
      Servicer shall account for Purchase Amounts paid by itself, CFSC, or the
      Depositor separately.

     

                                 
      (b)  By its acknowledgement of this Agreement, the Indenture Trustee agrees
      that on each Distribution Date it will withdraw all Investment Earnings credited
      to the Reserve Account since the preceding Distribution Date (or in the case
      of
      the initial Distribution Date, the Indenture Trustee will withdraw all
      Investment Earnings credited to Reserve Account since the Closing Date) and
      deposit such Investment Earnings in the Collection Account in accordance with
      Section
      8.03(a)
      of the
      Indenture.

     

                        
      SECTION 5.04.  Distributions.
      

     

                                 
      (a)  On each Determination Date, the Servicer shall calculate all amounts
      required to determine the amounts to be remitted to the Class A
      Noteholders, the Class B Noteholders and the Certificateholder.

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

       

                                 
        (b)  On the second Business Day prior to each Distribution Date, the
        Servicer shall instruct the Indenture Trustee, which instruction shall be
        in the
        form of Schedule
        E
        (or such
        other form that is acceptable to the Indenture Trustee and the Servicer),
        to
        make the following deposits and distributions for receipt by the Servicer,
        the
        Noteholders, or for deposit in the applicable Trust Account or Certificate
        Distribution Account by 11:00 A.M. (New York time) on such following
        Distribution Date to the extent of the Total Distribution Amount on deposit
        in
        the Collection Account, in the following order of priority:

    

     

                                                  (i) 
      to the Servicer, the Servicing Fee and all unpaid Servicing Fees from prior
      Collection Periods;

     

                                                
      (ii)  to the Administrator under the Administration Agreement, the
      Administration Fee and all unpaid Administration Fees from prior Collection
      Periods;

     

                                                
      (iii)  to the Class A Noteholders pro rata based upon the amount of
      interest accrued on each such Class of Class A Notes, the Class A
      Noteholders' Interest Distributable Amount;

     

                                                 
      (iv)  to the Principal Distribution Account, the First Priority Principal
      Distribution Amount, if any;

     

                                                  
      (v)  to the Class B Noteholders, the Class B Noteholders' Interest
      Distributable Amount;

     

                                                 
      (vi)  to the Principal Distribution Account, the Second Priority Principal
      Distribution Amount, if any;

     

                                                 
      (vii)  to the Reserve Account, an amount equal to the excess of the
      Specified Reserve Account Balance over the amount on deposit in the Reserve
      Account on such Distribution Date; provided,
      that,
      on or
      prior to the Distribution Date on which the amount on deposit in the Reserve
      Account equals the Specified Reserve Account Balance, the amount deposited
      in
      the Reserve Account pursuant to this clause (vii) shall not exceed the Net
      Excess Spread for the applicable Distribution Date;

     

                                                 
      (viii)  if any Class of Notes is Outstanding prior to giving effect to
      distributions on such Distribution Date, to the Principal Distribution Account,
      the Regular Principal Distribution Amount;

     

                                                  
      (ix)  pro rata, to the Indenture Trustee under the Indenture, all unpaid
      Indenture Trustee's fees and expenses, to the Custodian under the Custodial
      Agreement, all unpaid Custodian's fees and expenses; and to the Issuing Entity,
      the amount of any state taxes payable by the Issuing Entity; and

     

                                                   
      (x)  to the Certificate Distribution Account, the remaining Total
      Distribution Amount.

     

                          
      (c)  On the second Business Day prior to each Distribution Date, the
      Servicer shall instruct the Indenture Trustee, which instruction shall be in
      the
      form of Schedule
      E
      (or such
      other form that is acceptable to the Indenture Trustee and the Servicer), to
      make the following distributions from the Principal Distribution Account by
      11:00 A.M. (New York time) on such following Distribution Date in the following
      order of priority:

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

       

                                                    
        (i)  to the Class A-1 Noteholders in reduction of the Outstanding
        Principal Amount of the Class A-1 Notes until the Outstanding Principal
        Amount thereof has been reduced to zero;

    

     

                                                   (ii) 
      to the Class A-2 Noteholders in reduction of the Outstanding Principal
      Amount of the Class A-2 Notes until the Outstanding Principal Amount
      thereof has been reduced to zero;

     

                                                  
      (iii)  to the Class A-3 Noteholders in reduction of the Outstanding
      Principal Amount of the Class A-3 Notes until the Outstanding Principal
      Amount thereof has been reduced to zero; 

     

                                                  
      (iv)  to the Class A-4 Noteholders in reduction of the Outstanding
      Principal Amount of the Class A-4 Notes until the Outstanding Principal
      Amount thereof has been reduced to zero;

     

                                                    
      (v)  to the Class B Noteholders in reduction of the Outstanding Principal
      Amount of the Class B Notes until the Outstanding Principal Amount thereof
      has
      been reduced to zero; and

     

                                                   
      (vi)  to the Certificate Distribution Account, any funds remaining on
      deposit in the Principal Distribution Account.

     

                                     (d) 
      Notwithstanding anything in this Section
      5.04
      to the
      contrary, if an Event of Default under the Indenture occurs and the maturities
      of the Notes are accelerated pursuant to Section
      5.02
      of the
      Indenture, all amounts on deposit in the Collection Account shall be applied
      in
      accordance with Section
      5.04(b)
      or
5.04(c)
      of the
      Indenture.

     

                                    
      (e)  In the event that any withholding tax is imposed on the Issuing
      Entity’s payment (or allocations of income) to the Class B Noteholders, such tax
      shall reduce the amount otherwise distributable to the Class B Noteholders
      in
      accordance with this Section. The Indenture Trustee is hereby authorized to
      retain from amounts otherwise distributable to the Class B Noteholders
      sufficient funds for the payment of any tax that is legally owed or required
      to
      be withheld by the Issuing Entity (but such authorization shall not prevent
      the
      Issuing Entity or the Indenture 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 the Class B Noteholders shall be treated as cash
      distributed to the Class B Noteholders at the time it is withheld by the Issuing
      Entity and remitted to the appropriate taxing authority. If there is a
      possibility that withholding tax is payable with respect to a distribution,
      the
      Indenture Trustee may in its sole discretion withhold such amounts in accordance
      with this clause (e). In the event that the Class B Noteholders wish to apply
      for a refund of any such withholding tax, the Indenture Trustee shall reasonably
      cooperate with the Class B Noteholders in making such claim so long as the
      Class
      B Noteholders agrees to reimburse the Indenture Trustee for any out-of-pocket
      expenses incurred.

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

       

                      
        SECTION 5.05.  Reserve Account.
        

    

     

                                 
      (a)  On the Closing Date, the Issuing Entity shall deposit the Reserve
      Account Initial Deposit into the Reserve Account using the cash supplied to
      it
      pursuant to Section 2.01(h). The Servicer shall determine the Specified
      Reserve Account Balance for each Distribution Date.

     

                                  (b) 
      On each Determination Date, the Servicer shall determine if the Total Required
      Payment exceeds the Total Available Amount for the related Distribution Date,
      and if such an excess exists the Servicer shall instruct the Indenture Trustee
      to withdraw from the Reserve Account on the related Distribution Date, to the
      extent of funds available therein after any withdrawal from the Reserve Account
      pursuant to Section
      5.03(b),
      an
      amount equal to such excess and deposit such funds into the Collection Account
      for inclusion as part of the Total Distribution Amount for distribution on
      such
      Distribution Date in accordance with the priorities set forth in Section
      5.04(b).

     

                                 
      (c)  On each Determination Date, the Servicer shall determine if the amount
      on deposit in the Reserve Account (after taking into account any deposits
      thereto pursuant to Sections
      5.04(b)
      and any
      withdrawals therefrom pursuant to Sections
      5.03(b)
      or
5.05(b))
      is
      greater than the Specified Reserve Account Balance for such Distribution Date
      (which shall be calculated to give effect to the reduction in the Outstanding
      Principal Amount of the Notes to result from payments to Noteholders pursuant
      to
Section
      5.04(c)
      on such
      Distribution Date) and the Servicer shall instruct the Indenture Trustee to
      deposit such amounts in the Certificate Distribution Account.

     

                                
      (d)  Notwithstanding anything in this Section
      5.05
      to the
      contrary, if an Event of Default under the Indenture occurs and the maturities
      of the Notes are accelerated pursuant to Section
      5.02
      of the
      Indenture, amounts on deposit in the Reserve Account shall be applied by the
      Indenture Trustee in accordance with Section
      5.04(b)
      or
5.04(c)
      of the
      Indenture.

     

                                  (e) 
      Upon satisfaction of the Rating Agency Condition, the Depositor may eliminate
      the Reserve Account and replace it with an alternative arrangement.

     

                     
      SECTION 5.06.  Certificateholder and Noteholder
      Information.
      On the
      second Business Day prior to each Distribution Date, the Indenture Trustee
      shall
      forward or make available to each Noteholder of record and the Administrator
      shall forward to each Certificateholder of record pursuant to the Trust
      Agreement the Servicer Report delivered by the Servicer pursuant to
      Section 4.09. Such Servicer Report shall set forth at least the following
      information as to the Notes (separately stating such information as to the
      Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the
      Class A-4 Notes and the Class B Notes) and the Certificate, to the extent
      applicable:

     

                                                                 
      (i)  the amount to be deposited to the Principal Distribution Account and
      the amounts to be paid to the Noteholders and the Certificateholder
      therefrom;

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

       

                                                                   
        (ii)  the Class A Noteholders' Interest Distributable Amount, the
        Class B Noteholders' Interest Distributable Amount and the amounts paid to
        such
        Noteholders in respect thereof;

    

     

                                                                
       (iii)  the Pool Balance as of the close of business on the last day
      of the preceding Collection Period;

     

                                                                 
      (iv)  the Note Value as of the close of business on the last day of the
      preceding Collection Period;

     

                                                                 
      (v)  the Outstanding Principal Amount of each class of the Notes, the
      Class A-1 Note Pool Factor, the Class A-2 Note Pool Factor, the
      Class A-3 Note Pool Factor, the Class A-4 Note Pool Factor, the Class
      B Note Pool Factor and the Certificate Balance, in each case as of the close
      of
      business on the last day of the preceding Collection Period, after giving effect
      to payments allocated to principal reported under (i) above;

     

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

     

                                                                  
      (vii)  the amount of the Administration Fee paid to the Administrator with
      respect to the preceding Collection Period;

     

                                                                 
      (viii)  the aggregate amount of the Purchase Amounts for Purchased
      Receivables with respect to the related Collection Period paid by each of CFSC,
      the Depositor, and the Servicer (accounted for separately);

     

                                                                  
      (ix)  the amount of Realized Losses, if any, for the related Collection
      Period;

     

                                                                   (x) 
      the amount of Cumulative Realized Losses with respect to the related Collection
      Period; 

     

                                                                 
      (xi)  the balance of the Reserve Account on such Distribution Date, after
      giving effect to withdrawals made on such Distribution Date;

     

                                                                 
      (xii)  the Specified Reserve Account Balance for such Distribution
      Date;

     

                                                                
      (xiii)  the amount, if any, to be withdrawn from the Reserve Account and
      deposited into the Collection Account on such Distribution Date pursuant to
      Section 5.05(b);

     

                                                                 (xiv) 
      the amount, if any, to be withdrawn from the Reserve Account and deposited
      to
      the Certificate Distribution Account pursuant to Section
      5.05(c);
      

     

                                                                
      (xv)  the Certificate Balance for such Distribution Date and the aggregate
      amount to be deposited to the Certificate Distribution Account pursuant to
      Section 5.04(c);
      

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

       

                                                                
        (xvi)  the amount, if any, to be distributed to the Certificateholder
        pursuant to Section 5.02(a)(i)
        of the
        Trust Agreement; and

    

     

                                                            
      (xvii)  the amount, if any, to be distributed to the Depositor pursuant to
Section 5.02(a)(ii)
      of the
      Trust Agreement.

     

    Each
      amount set forth pursuant to paragraph (i), (ii) or (iv) above shall be
      expressed as a dollar amount per $1,000 of original principal balance of a
      Note.

     

    The
      Indenture Trustee shall only be required to provide to the Noteholders the
      information furnished to it by the Servicer. The Indenture Trustee shall not
      be
      required to determine, confirm or recompute any such information.

     

                  
      SECTION 5.07.  Net Deposits.
      As an
      administrative convenience, so long as CFSC is the Servicer and the
      Administrator, if the Servicer is permitted to remit collections monthly rather
      than within two Business Days of their receipt and identification pursuant
      to
Section
      5.02,
      the
      Servicer will be permitted to make the deposit of collections on the Receivables
      and Purchase Amounts for or with respect to the Collection Period net of
      distributions to be made to the Servicer or the Administrator with respect
      to
      such Collection Period (including any Additional Servicing Compensation and
      the
      Servicing Fee to the extent of amounts available for payment thereof), and
      the
      Servicer shall pay amounts owing to the Administrator directly; provided, that
      if the Servicer is required to remit collections within two Business Days,
      the
      Servicer shall be paid the Additional Servicing Compensation by means of the
      Servicer making the deposit of such collections net of the Additional Servicing
      Compensation and deposits of such amounts may not be made net of the Servicing
      Fee. The Servicer, however, will account to the Owner Trustee, the Indenture
      Trustee, the Noteholders and the Certificateholder as if the Servicing Fee
      and
      Administration Fee were paid individually.

     

                   SECTION
      5.08.  Tax Monitoring.
      The
      Servicer shall monitor whether any state taxes are payable by the Issuing Entity
      and shall notify the Indenture Trustee of the amount and due date of such taxes
      in a timely manner. 

     

     

     

    ARTICLE
      VI

     

    THE
      DEPOSITOR

     

                     SECTION
      6.01.  Representations of Depositor.
      The
      Depositor makes the following representations on which the Issuing Entity is
      deemed to have relied in acquiring the Receivables. The representations speak
      as
      of the execution and delivery of this Agreement and shall survive the sale
      of
      the Receivables to the Issuing Entity and the grant of a security interest
      therein to the Indenture Trustee pursuant to the Indenture.

     

                                 
      (a)  Organization and Good Standing.
      The
      Depositor is duly organized and validly existing as a corporation in good
      standing under the laws of the State of Nevada with the 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, the power, authority and legal right to acquire and own the
      Receivables.

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

                                
      (b)  Due Qualification.
      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 failure to so qualify or to obtain any such license
      or approval would render any Receivable unenforceable that would otherwise
      be
      enforceable by the Depositor or the Issuing Entity.

     

                               
      (c)  Power and Authority.
      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 Receivables and other property to be sold and assigned to and
      deposited with the Issuing Entity and has duly authorized such sale and
      assignment to the Issuing Entity by all necessary corporate action; and the
      execution, delivery and performance of this Agreement has been duly authorized
      by the Depositor by all necessary corporate action.

     

                              
      (d)  Binding Obligation.
      This
      Agreement constitutes a legal, valid and binding obligation of the Depositor
      enforceable in accordance with its terms, except to the extent that such
      enforcement may be subject to bankruptcy, insolvency, reorganization, moratorium
      or other similar laws now or hereafter in effect relating to creditors' rights
      generally, and the remedy of specific performance and injunctive relief may
      be
      subject to certain equitable defenses and to the discretion of the court before
      which any proceeding therefor may be brought.

     

                              
      (e)  No Violation.
      The
      consummation by the Depositor of the transactions contemplated by this Agreement
      and the fulfillment by the Depositor of the terms hereof do not
      (i) conflict with, result in any breach of any of the terms and provisions
      of, or constitute (with or without notice or lapse of time) a default under,
      the
      articles of incorporation or by-laws of the Depositor, or any indenture,
      agreement or other instrument to which the Depositor is a party or by which
      it
      is bound; (ii) 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); or (iii) 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.

     

                            
      (f)  No Proceedings.
      There
      are no proceedings or investigations pending, or to the Depositor's best
      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, the
      Indenture, the Notes, the Certificate or any of the other Basic Documents,
      (ii) seeking to prevent the issuance of the Notes or the Certificate or the
      consummation of any of the transactions contemplated by this Agreement, the
      Indenture or any of the other Basic Documents; (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, the Indenture, the Notes, the Certificate
      or
      any other of the Basic Documents or (iv) which might adversely affect the
      federal or state income tax attributes of the Notes or the
      Certificate.

     

                   
      SECTION 6.02.  Liability of Depositor; Indemnities.
      The
      Depositor shall be liable in accordance herewith only to the extent of the
      obligations specifically undertaken by the Depositor under this
      Agreement.

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

       

                             
        (a)  The Depositor shall indemnify, defend and hold harmless the Issuing
        Entity, the Owner Trustee, the Custodian and the Indenture Trustee and their
        officers, directors and agents from and against any taxes that may at any
        time
        be asserted against the Issuing Entity, the Owner Trustee, the Custodian
        or the
        Indenture Trustee or their respective officers, directors, and agents with
        respect to the sale of the Receivables to the Issuing Entity or the issuance
        and
        original sale of the Certificate and the Notes, including any sales, gross
        receipts, general corporation, tangible personal property, privilege or license
        taxes (but, in the case of the Issuing Entity, not including any taxes asserted
        with respect to ownership of the Receivables or federal or other income taxes
        arising out of the transactions contemplated by this Agreement) and costs
        and
        expenses in defending against the same.

    

     

                         
      (b)  The Depositor shall indemnify, defend and hold harmless the Issuing
      Entity, the Owner Trustee, the Custodian and the Indenture Trustee and their
      officers, directors, and agents from and against any loss, liability or expense
      incurred by reason of (i) the Depositor'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 Depositor's or the Issuing Entity's violation or alleged violation
      of
      federal or state securities laws in connection with the offering and sale of
      the
      Notes and the Certificate.

     

    Indemnification
      under this Section shall survive the resignation or removal of the Owner
      Trustee, the Custodian or the Indenture Trustee and the termination of this
      Agreement and shall include reasonable fees and expenses of counsel and expenses
      of litigation. If the Depositor shall have made any indemnity payments pursuant
      to this Section
      6.02
      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 Depositor, without interest.

     

                    SECTION
      6.03.  Merger or Consolidation of, or Assumption of the Obligations of,
      Depositor.
      Any
      Person (a) into which the Depositor may be merged or consolidated, (b) which
      may
      result from any merger or consolidation to which the Depositor shall be a party
      or (c) which may succeed to the properties and assets of the Depositor
      substantially as a whole, which Person in any of the foregoing cases executes
      an
      agreement of assumption to perform every obligation of the Depositor under
      this
      Agreement, shall be the successor to the Depositor hereunder without the
      execution or filing of any document or any further act by any of the parties
      to
      this Agreement; provided,
      however,
      that
      (i) immediately after giving effect to such transaction, no representation
      or
      warranty made pursuant to Section
      3.01
      shall
      have been breached and no Servicer Default, and no event that, after notice
      or
      lapse of time, or both, would become a Servicer Default shall have occurred
      and
      be continuing, (ii) the Depositor shall have delivered to the Owner Trustee
      and
      the Indenture Trustee an Officers' Certificate and an Opinion of Counsel each
      stating that such consolidation, merger or succession and such agreement of
      assumption comply with this Section and that all conditions precedent, if any,
      provided for in this Agreement relating to such transaction have been complied
      with, (iii) the Rating Agency Condition shall have been satisfied with respect
      to such transaction and (iv) the Depositor shall have delivered to the Owner
      Trustee and the Indenture Trustee an Opinion of Counsel either (A) stating
      that,
      in the opinion of such counsel, all actions necessary to perfect the interests
      of the Issuing Entity and the Indenture Trustee have been taken, including
      that
      all financing statements and continuation statements and amendments thereto
      have
      been authorized and filed that are necessary fully to preserve and protect
      the
      interest of the Issuing Entity and Indenture Trustee, respectively, in the
      Receivables and reciting the details of such filings, or (B) stating that,
      in
      the opinion of such counsel, no such action shall be necessary to preserve
      and
      protect such interests. Notwithstanding anything herein to the contrary, the
      execution of the foregoing agreement of assumption and compliance with clauses
      (i), (ii), (iii) and (iv) above shall be conditions to the consummation of
      the
      transactions referred to in clause (a), (b) or (c) above.

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

       

       

                   
        SECTION 6.04.  Limitation on Liability of Depositor and
        Others.
        The
        Depositor and any director or officer or employee or agent of the Depositor
        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 Depositor 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 6.05.  Depositor May Own the Certificate or
      Notes.
      The
      Depositor and any Affiliate (other than CFSC) thereof may in its individual
      or
      any other capacity become the owner or pledgee of the Certificate or Notes
      with
      the same rights as it would have if it were not the Depositor or an Affiliate
      thereof, except as expressly provided herein (including the definition of
      "Outstanding" contained in each of the Indenture and the Trust Agreement) or
      in
      any Basic Document.

     

     

    ARTICLE
      VII

     

    THE
      SERVICER

     

    SECTION
      7.01.  Representations of Servicer.
      The
      Servicer makes the following representations on which the Issuing Entity is
      deemed to have relied in acquiring the Receivables. The representations speak
      as
      of the execution and delivery of the Agreement (or as of the date a Person
      (other than the Indenture Trustee) becomes Servicer pursuant to Sections
      7.03
      and
8.02,
      in the
      case of a successor to the Servicer) and shall survive the sale of the
      Receivables to the Issuing Entity and the grant of a security interest therein
      to the Indenture Trustee pursuant to the Indenture.

     

                  
      (a)    Organization and Good Standing.
      The
      Servicer is a corporation duly organized, validly existing and in good standing
      under the laws of the jurisdiction of its incorporation, and has the corporate
      power and authority to own its properties and to conduct the business in which
      it is currently engaged, and had at all relevant times, and has, the power,
      authority and legal right to service the Receivables.

     

                                 
      (b)  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 have been duly authorized by the Servicer by all necessary corporate
      action.

     

                                 
      (c)  Binding Obligation.
      This
      Agreement constitutes a legal, valid and binding obligation of the Servicer
      enforceable in accordance with its terms, except that such enforcement may
      be
      subject to bankruptcy, insolvency, reorganization, moratorium or other similar
      laws now or hereafter in effect relating to creditors' rights generally, and
      the
      remedy of specific performance and injunctive relief may be subject to certain
      equitable defenses and to the discretion of the court before which any
      proceeding therefor may be brought.

     

    
       

      
         

        
          
            
            

          

          
            39

            
              

            

          

          
            
            

          

           

                                     
            (d)  No Violation.
            The
            consummation by the Servicer of the transactions contemplated by this
            Agreement
            and the fulfillment by the Servicer 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 by-laws of the Servicer, or any indenture, agreement
            or other
            instrument to which the Servicer 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 as
            contemplated by the Basic Documents); nor violate any law or, to the
            best of 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.

        

      

    

     

                              
      (e)  No Proceedings.
      To the
      Servicer's best knowledge, there are no proceedings or investigations pending,
      or 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, the Indenture,
      the
      Notes, the Certificate or any of the other Basic Documents; (ii) seeking to
      prevent the issuance of the Notes or the Certificate or the consummation of
      any
      of the transactions contemplated by this Agreement, the Indenture or any of
      the
      other 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, this Agreement, the
      Indenture, the Notes, the Certificate or any of the other Basic Documents;
      or
      (iv) relating to the Servicer and which might adversely affect the federal
      or
      state income tax attributes of the Notes or the Certificate.

     

                              
      (f)  No Consents Required.
      All
      approvals, authorizations, consents, orders or other actions of any Person
      or of
      any Governmental Authority required in connection with the execution and
      delivery by the Servicer of this Agreement or any other Basic Document, the
      performance by the Servicer of the transactions contemplated by this Agreement
      or any other Basic Document and the fulfillment by the Servicer of the terms
      hereof or thereof, have been obtained or have been completed and are in full
      force and effect (other than approvals, authorizations, consents, orders or
      other actions which if not obtained or completed or in full force and effect
      would not have a material adverse effect on the Servicer or the Issuing Entity
      or upon the collectability of any Receivable or upon the ability of the Servicer
      to perform its obligations under this Agreement).

     

                    
      SECTION 7.02.  Indemnities of Servicer.
      The
      Servicer shall be liable in accordance herewith only to the extent of the
      obligations specifically undertaken by the Servicer under this
      Agreement.

     

                       
      (a)  The Servicer shall defend, indemnify and hold harmless the Issuing
      Entity, the Owner Trustee, the Indenture Trustee, the Custodian, the
      Noteholders, the Certificateholder and the Depositor and any of the officers,
      directors and agents of the Issuing Entity, the Owner Trustee, the Indenture
      Trustee, the Custodian and the Depositor from and against any and all costs,
      expenses, losses, damages, claims and liabilities, arising out of or resulting
      from the use, ownership or operation by the Servicer or any Affiliate (other
      than the Depositor or the Issuing Entity) thereof of any Transaction
      Equipment.

     

    
      
        
        

      

      
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      (b)  The Servicer shall indemnify, defend and hold harmless the Issuing
      Entity, the Owner Trustee, the Indenture Trustee, the Custodian and the
      Depositor and their respective officers, directors and agents from and against
      (i) any taxes that may at any time be asserted against any such Person with
      respect to the transactions contemplated herein, including any sales, gross
      receipts, general corporation, tangible personal property, privilege or license
      taxes (but, in the case of the Issuing Entity or the Depositor, not including
      any taxes asserted with respect to, and as of the date of, the sale of the
      Receivables to the Issuing Entity or the issuance and original sale of the
      Certificate and the Notes, or asserted with respect to ownership of the
      Receivables, or Federal or other income taxes arising out of distributions
      on
      the Certificate or the Notes) and (ii) costs and expenses in defending against
      the same.

     

                       
      (c)  The Servicer shall indemnify, defend and hold harmless the Issuing
      Entity, the Owner Trustee, the Indenture Trustee, the Depositor, the Custodian,
      the Certificateholder and the Noteholders and any of the officers, directors
      and
      agents of the Issuing Entity, the Owner Trustee, the Indenture Trustee and
      the
      Depositor from and against any and all costs, expenses, losses, claims, damages
      and liabilities to the extent that any 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 or on account of the failure of
      the
      Servicer to be qualified to do business as a foreign corporation or to have
      obtained a license or approval in any jurisdiction.

     

                       (d) 
      The Servicer shall indemnify, defend and hold harmless the Owner Trustee, the
      Custodian and the Indenture Trustee and their respective officers, directors
      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 in the case of the Owner
      Trustee, in the Trust Agreement, in the case of the Custodian, the Custodial
      Agreement and in the case of the Indenture Trustee, the Indenture, except to
      the
      extent that any such cost, expense, loss, claim, damage or liability: (i) shall
      be due to the willful misfeasance, bad faith or negligence (except for errors
      in
      judgment) of the Owner Trustee, the Custodian or the Indenture Trustee, as
      applicable; or (ii) 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.

     

                     
      (e)  The Servicer shall pay any and all taxes levied or assessed upon all
      or any part of the Owner Trust Estate, other than any taxes asserted with
      respect to, and as of the date of, the sale of the Receivables to the Issuing
      Entity or the issuance and original sale of the Certificate and the Notes,
      or
      Federal or other income taxes imposed on the Issuing Entity because of its
      classification or reclassification for tax purposes, or Federal or other income
      taxes arising out of distributions on the Certificate or the Notes.

     

    For
      purposes of this Section, in the event of the termination of the rights and
      obligations of CFSC (or any successor thereto pursuant to Section
      7.03)
      as
      Servicer pursuant to Section
      8.01,
      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
      8.02.

     

    
      
        
        

      

      
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    Indemnification
      under this Section shall survive the resignation or removal of the Owner Trustee
      or the Indenture Trustee 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 7.03.  Merger or Consolidation of, or Assumption of the
      Obligations of, Servicer.
      Any
      Person (a) (i) into which the Servicer may be merged or consolidated, (ii)
      which
      may result from any merger or consolidation to which the Servicer shall be
      a
      party, (iii) which may succeed to the properties and assets of the Servicer
      substantially as a whole, or (iv) which is a corporation 50% or more of the
      voting stock of which is owned, directly or indirectly, by Caterpillar, and
      (b)
      in the case of any of (i), (ii), (iii) or (iv), which has executed an agreement
      of assumption to perform every obligation of the Servicer hereunder, shall
      be
      the successor to the Servicer under this Agreement without further act on the
      part of any of the parties to this Agreement; provided,
      however,
      that
      (w) immediately after giving effect to such transaction, no Servicer Default,
      and no event which, after notice or lapse of time, or both, would become a
      Servicer Default shall have occurred and be continuing, (x) the Servicer shall
      have delivered to the Owner Trustee and the Indenture Trustee an Officers'
      Certificate and an Opinion of Counsel each stating that such consolidation,
      merger or succession and such agreement of assumption comply with this Section
      and that all conditions precedent provided for in this Agreement relating to
      such transaction have been complied with, (y) the Rating Agency Condition shall
      have been satisfied with respect to such transaction and (z) the Servicer shall
      have delivered to the Owner Trustee and the Indenture Trustee an Opinion of
      Counsel either (A) stating that, in the opinion of such counsel, all financing
      statements and continuation statements and amendments thereto have been
      authorized and filed that are necessary fully to preserve and protect the
      interest of the Owner Trustee and the Indenture Trustee, respectively, in the
      Receivables and reciting the details of such filings or (B) stating that, in
      the
      opinion of such counsel, no such action shall be necessary to preserve and
      protect such interests. Notwithstanding anything herein to the contrary, the
      execution of the foregoing agreement of assumption and compliance with clauses
      (w), (x), (y) and (z) above shall be conditions to the consummation of the
      transactions referred to in clause (a) or (b) above.

     

                  
      SECTION 7.04.  Limitation on Liability of Servicer and
      Others.
      Neither
      the Servicer nor any of the directors or officers or employees or agents of
      the
      Servicer shall be under any liability to the Issuing Entity, the Noteholders
      or
      the Certificateholder, 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 or officer or employee or agent of the Servicer as the case may be,
      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.

     

    
      
        
        

      

      
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    Except
      as
      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 Certificateholder under this Agreement and the
      Noteholders under the Indenture.

     

                  
      SECTION 7.05.  CFSC Not To Resign as Servicer.
      Subject
      to the provisions of Section
      7.03,
      CFSC
      shall not resign from the obligations and duties hereby imposed on it as
      Servicer under this Agreement except upon determination that the performance
      of
      its duties under this Agreement shall no longer be permissible under applicable
      law (if it is also determined that such determination may not be reversed).
      Notice of any such determination permitting the resignation of CFSC shall be
      communicated to the Owner Trustee and the Indenture Trustee 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 Owner Trustee and the Indenture Trustee concurrently with
      or
      promptly after such notice. No such resignation shall become effective until
      the
      Indenture Trustee or a successor Servicer shall have assumed the
      responsibilities and obligations of CFSC in accordance with Section
      8.02.

     

    ARTICLE
      VIII

     

    DEFAULT

     

                    
      SECTION 8.01.  Servicer Default.
      If any
      one of the following events (each, a "Servicer
      Default")
      shall
      occur and be continuing:

     

                                
      (a)  any failure by the Servicer (i) to deliver to the Indenture Trustee
      for deposit in any of the Trust Accounts or the Certificate Distribution Account
      any required payment or (ii) to direct the Indenture Trustee to make any
      required distribution therefrom that shall continue unremedied for a period
      of
      three Business Days after written notice of such failure is received by the
      Servicer from the Owner Trustee or the Indenture Trustee or after discovery
      of
      such failure by an officer of the Servicer;

     

                              
      (b)  failure on the part of the Servicer to duly observe or to perform in
      any material respect any other covenants or agreements of the Servicer set
      forth
      in this Agreement or any other Basic Document, which failure shall (i)
      materially and adversely affect the rights of the Certificateholder or
      Noteholders and (ii) continues unremedied for a period of 60 days after the
      date
      on which written notice of such failure, requiring the same to be remedied,
      shall have been given (A) to the Servicer by the Owner Trustee or the Indenture
      Trustee or (B) to the Servicer and to the Owner Trustee and the Indenture
      Trustee by the Holders of Notes evidencing not less than 25% of the Outstanding
      Principal Amount of the Notes or the Certificateholder; or

     

    
      
        
        

      

      
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        (c)  an Insolvency Event occurs with respect to 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 Class A Notes
      evidencing not less than 25% of the Outstanding Principal Amount of such Notes,
      or if no Class A Notes are Outstanding, the Holders of Class B Notes
      evidencing not less than 25% of the Outstanding Principal Amount of such Notes,
      or if no Notes are Outstanding, either the Owner Trustee or the
      Certificateholder, 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
      7.02
      hereof
      that accrued prior to such termination) of the Servicer under this Agreement.
      On
      or after the receipt by the Servicer of such written notice, all authority
      and
      power of the Servicer under this Agreement, whether with respect to the Notes,
      the Certificate 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
      8.02;
      and,
      without limitation, the Indenture Trustee and the Owner Trustee are hereby
      authorized and empowered to execute and deliver, on behalf 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, the Indenture Trustee and the Owner Trustee 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 shall thereafter be received by it with
      respect to a Receivable. All reasonable costs and expenses (including reasonable
      attorneys' fees) incurred in connection (x) with transferring the computer
      or
      other records to the successor Servicer in the form requested and (y) 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. Upon receipt of notice of the
      occurrence of a Servicer Default, the Owner Trustee shall give notice thereof
      to
      the Rating Agencies.

     

                     
      SECTION 8.02.  Appointment of Successor Servicer.
      

     

                                (a) 
      Upon the Servicer's receipt of notice of termination, pursuant to Section
      8.01
      or the
      Servicer's resignation in accordance with the terms of this Agreement, the
      predecessor Servicer shall continue to perform its functions as Servicer under
      this Agreement, in the case of termination, only until the 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 earlier of (x) the date 45 days from the delivery to the Owner Trustee
      and
      the Indenture Trustee of written notice of such resignation (or written
      confirmation of such notice) in accordance with the terms of this Agreement
      and
      (y) 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 by a written assumption in form acceptable to the Owner
      Trustee and the Indenture Trustee. 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, pending the appointment of and
      acceptance by a successor Servicer, the Indenture Trustee without further action
      shall automatically be appointed and serve as the successor Servicer and the
      Indenture Trustee shall be entitled to the Servicing Fee and the Additional
      Servicing Compensation. Notwithstanding the above, the Indenture Trustee shall,
      if it shall be legally unable so to act, appoint or petition a court of
      competent jurisdiction to appoint, any established institution who has
      demonstrated its capability to service the Receivables to the satisfaction
      of
      the Indenture Trustee, as the successor to the Servicer under this Agreement,
      having a net worth of not less than $50,000,000 and whose regular business
      shall
      include the servicing of receivables comparable with the Receivables, as the
      successor to the Servicer under this Agreement.

     

    
      
        
        

      

      
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    The
      Indenture Trustee, acting in its capacity as successor Servicer, and any
      successor Servicer appointed by it, shall have no responsibility or obligation
      (i) for any breach by any predecessor Servicer of any of its representations
      and
      warranties, or (ii) any acts or omissions of CFSC or any other Servicer prior
      to
      its termination.

     

                                 
      (b)  Upon appointment, the successor Servicer (including the Indenture
      Trustee acting as successor servicer) shall 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 Servicing Fee and the
      Additional Servicing Compensation and all the rights granted to the predecessor
      Servicer by the terms and provisions of this Agreement.

     

                                 
      (c)  Subject to the Indenture Trustee's right to appoint a successor
      Servicer pursuant to Section
      8.02(a)
      after
      the Indenture Trustee has become the Servicer pending the appointment of and
      acceptance by a successor Servicer, the Servicer may not resign unless it is
      prohibited from serving as such by law.

     

                                  (d) 
      Notwithstanding any other provision of this Agreement, neither the Indenture
      Trustee nor any successor Servicer shall be deemed in default, breach or
      violation of this Agreement as a result of the failure of CFSC or any Servicer
      (i) to cooperate with the Indenture Trustee or any successor Servicer pursuant
      to Section
      8.01,
      (ii) to
      deliver funds required to be deposited to any Trust Account or (iii) to deliver
      files or records relative to the Receivables as may be requested by the
      Indenture Trustee or successor Servicer.

     

                   
      SECTION 8.03.  Notification to Noteholders and
      Certificateholder.
      Upon
      any termination of, or appointment of a successor to, the Servicer pursuant
      to
      this Article VIII, the Owner Trustee shall give prompt written notice thereof
      to
      the Certificateholder and the Indenture Trustee shall give prompt written notice
      thereof to Noteholders and the Rating Agencies.

     

                 
      SECTION 8.04.  Waiver of Past Defaults.
      The
      Holders of Class A Notes evidencing more than a 50% of the Outstanding
      Principal Amount of such Notes or, if no Class A Notes are Outstanding, the
      Holders of Class B Notes evidencing more than 50% of the Outstanding Principal
      Amount of such Notes or, if no Notes are Outstanding, the Certificateholder,
      may, on behalf of all Noteholders and the Certificateholder, 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 Trust Accounts in accordance with this Agreement.
      Upon
      any such waiver of a past default, such default shall cease to exist, and any
      Servicer Default arising therefrom shall be deemed to have been remedied for
      every purpose of this Agreement. No such waiver shall extend to any subsequent
      or other default or impair any right consequent thereto.

     

    
      
        
        

      

      
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        SECTION 8.05.  Appointment of Custodians.
        CFSC,
        the Depositor, the Issuing Entity and the Indenture Trustee may, with the
        consent of the Servicer and notice to the Rating Agencies, appoint U.S. Bank
        National Association, as Custodian to hold all or a portion of the Receivable
        Files as agent for such Person during such time as such Person owns or has
        an
        interest in the Receivables, in accordance with the Custodial Agreement.
        U.S.
        Bank National Association is appointed Custodian and, for so long as it shall
        be
        the Custodian thereunder, agrees to comply with the terms of the Custodial
        Agreement applicable to it. The Indenture Trustee agrees to comply with the
        terms of the Custodial Agreement and to enforce the terms and provisions
        thereof
        against the Custodian.

    

     

     

    ARTICLE
      IX

     

    TERMINATION

     

                 
      SECTION 9.01.  Optional Purchase of All Receivables; Trust
      Termination. 

     

                             (a) 
      If on the last day of any Collection Period the Note Value is 10% or less of
      the
      Initial Note Value the Servicer shall have the option to purchase the Owner
      Trust Estate, other than the Trust Accounts, which purchase shall be effective
      as of such last day by depositing in the Collection Account on or prior to
      the
      second Business Day prior to the next succeeding Distribution Date an amount
      equal to the aggregate Purchase Amount for the Receivables (including defaulted
      Receivables but not including Liquidated Receivables) pursuant to Section 5.03;
      provided,
      however,
      that
      the aggregate Purchase Amount for the Receivables, after payment of all amounts
      due pursuant to Section
      5.04(b)(i)
      on such
      next succeeding Distribution Date, is an amount at least equal to the aggregate
      Redemption Price for the Class A-4 Notes and the Class B Notes; and
      provided further that the Servicer shall not purchase the Owner Trust Estate
      if
      the aggregate Purchase Amount exceeds the fair market value of the Owner Trust
      Estate as determined by the Servicer in good faith. 

     

           
      (b) Notice
      of
      any termination of the Issuing Entity 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
      Certificateholder will succeed to the rights of the Noteholders hereunder (other
      than the right to receive payments under Section 5.05(b)),
      and
      the Owner Trustee will succeed to the rights of, and assume the obligations
      of,
      the Indenture Trustee pursuant to this Agreement.

     

    
      
        
        

      

      
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    ARTICLE
      X

     

    MISCELLANEOUS
      PROVISIONS

                   
      SECTION 10.01.  Amendment.
      The
      Agreement may be amended by the Depositor, the Servicer and the Issuing Entity,
      with the consent of the Indenture Trustee, but without the consent of any of
      the
      Noteholders or the Certificateholder, 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 Certificateholder; provided,
      however,
      that
      such amendment shall not, as evidenced by an Opinion of Counsel delivered to
      the
      Owner Trustee and the Indenture Trustee, adversely affect in any material
      respect the interests of any Noteholders or the Certificateholder or the federal
      tax characterization of the Notes.

     

    This
      Agreement may also be amended from time to time by the Depositor, the Servicer
      and the Issuing Entity, with the consent of the Indenture Trustee, the consent
      of the Holders of Notes evidencing at least a majority of the Outstanding
      Principal Amount of the Notes and the consent of the "Holder" (as defined in
      the
      Trust Agreement) of the Certificate, 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
      Certificateholder; provided,
      however,
      that no
      such amendment shall (a) increase or reduce in any manner the amount of, or
      accelerate or delay the timing of, collections of payments on Receivables or
      distributions that shall be required to be made for the benefit of the
      Noteholders or (b) reduce the aforesaid percentage of the Outstanding Principal
      Amount of the Notes, the holders of which are required to consent to any such
      amendment, without the consent of the Holders of all the Outstanding
      Notes.

     

    Prior
      to
      the execution of any such amendment or consent, the Servicer shall furnish
      written notification of the substance of such amendment or consent to each
      of
      the Rating Agencies. Promptly after the execution of any such amendment or
      consent without the consent of the Certificateholder, the Owner Trustee shall
      furnish written notification of the substance of such amendment or consent
      to
      the Certificateholder.

     

    It
      shall
      not be necessary for the consent of the Certificateholder or the Noteholders
      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.

     

    Prior
      to
      the execution of any amendment to this Agreement, the Owner Trustee and the
      Indenture Trustee shall be entitled to receive and rely upon an Opinion of
      Counsel stating that the execution of such amendment is authorized or permitted
      by this Agreement and the Opinion of Counsel referred to in Section
      10.02(i)(1).
      The
      Owner Trustee and the Indenture Trustee 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 10.02.  Protection of Title to Trust.
      

     

    
      
        
        

      

      
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        (a)  The Depositor shall take all actions necessary to perfect, and
        maintain perfection of, the interests of the Issuing Entity and the Indenture
        Trustee in the Receivables. In the event it is determined that the Indenture
        Trustee's or the Issuing Entity's interests are no longer perfected, such
        actions shall include but shall not be limited to the enforcement of the
        terms
        of the Custodial Agreement and of Section
        6.02
        of the
        Purchase Agreement. In addition, without limiting the rights of the Indenture
        Trustee or the Issuing Entity specified in the immediately preceding sentence,
        the Depositor shall authorize and file such financing statements and cause
        to be
        authorized and filed such continuation statements, all in such manner and
        in
        such places as may be required by law fully to present, maintain, and protect
        the interest of the Issuing Entity and the interest of the Indenture Trustee
        in
        the Receivables and in the proceeds thereof. The Depositor shall deliver
        (or
        cause to be delivered) to the Owner Trustee and the Indenture Trustee
        file-stamped copies of, or filing receipts for, any document filed as provided
        above, as soon as available following such filing.

    

     

                               
      (b)  Neither the Depositor nor the Servicer shall change its name or type
      or jurisdiction of organization unless it shall have given the Owner Trustee
      and
      the Indenture Trustee at least 30 days' prior written notice thereof and, if
      applicable, shall have timely filed appropriate amendments to any and all
      previously filed financing statements or continuation statements (so that the
      security interest of the Issuing Entity or the Indenture Trustee in the
      Receivables is not adversely affected).

     

                               
      (c)  The Servicer shall at all times maintain each office from which it
      shall service Receivables, and its principal executive office, within the United
      States of America.

     

                              
      (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 Collection Account 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 Issuing Entity (which
      interest has been acquired from the Depositor) and the Indenture Trustee in
      such
      Receivable and that such Receivable is owned by the Issuing Entity and a
      security interest therein has been granted to the Indenture Trustee. Indication
      of the Issuing Entity's interest (which interest has been acquired from the
      Depositor) 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 Depositor or the Servicer shall propose to sell,
      grant a security interest in, or otherwise transfer any interest in receivables
      comparable with the 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 Issuing Entity and a security interest therein has been granted
      to
      the Indenture Trustee.

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

       

                                  
        (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 Collateral,
      together with a reconciliation of such list to the Schedule of Receivables
      and
      to each of the Servicer Reports furnished before such request indicating removal
      of Receivables from the Collateral.

     

                                 
      (i) The Depositor shall deliver to the Owner Trustee and the Indenture
      Trustee:

     

                                              
      (1)  promptly after the execution and delivery of this Agreement and of
      each amendment thereto, an Opinion of Counsel either (A) stating that, in the
      opinion of such counsel, all actions have been taken that are necessary fully
      to
      perfect the interests of the Issuing Entity and the Indenture Trustee in the
      Receivables, and reciting the details of such action or referring to prior
      Opinions of Counsel in which such details are given, or (B) stating that, in
      the
      opinion of such counsel, no such action shall be necessary to perfect such
      interest; and

     

                                              
      (2)  within 120 days after the beginning of each calendar year beginning
      with the first calendar year beginning more than three months after the Cut-off
      Date, an Opinion of Counsel, dated as of a date during such 120-day period,
      either (A) stating that, in the opinion of such counsel, all actions have been
      taken, and, if applicable, all financing statements and continuation statements
      have been authorized and filed, that are necessary fully to perfect the
      interests of the Issuing Entity and the Indenture Trustee 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) stating that, in the opinion of such
      counsel, no such action shall be necessary to perfect 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 perfect such interest.

     

                              
      (j)  The Depositor 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 10.03.  Notices.
      All
      demands, notices and communications upon or to the Depositor, the Servicer,
      the
      Issuing Entity, the Owner Trustee, the Indenture Trustee or the Rating Agencies
      under this Agreement shall be in writing, personally delivered or mailed by
      certified mail, return receipt requested, and shall be deemed to have been
      duly
      given upon receipt (a) in the case of the Depositor, to Caterpillar Financial
      Funding Corporation, 4040 S. Eastern Avenue, Suite 344, Las Vegas, Nevada 89119,
      (702-735-2514), (b) in the case of the Servicer, to Caterpillar Financial
      Services Corporation, 2120 West End Avenue, Nashville, TN 37203-0001
      (615-341-1000), (c) in the case of the Issuing Entity or the Owner Trustee,
      at
      the "Corporate Trust Office" (as defined in the Trust Agreement), with a copy
      to
      the Administrator, to 2120 West End Avenue, Nashville, Tennessee 37203-0001
      (615-341-1000), (d) in the case of the Indenture Trustee, at the Corporate
      Trust
      Office, (e) in the case of Moody's, to Moody's Investors Service, Inc., ABS
      Monitoring Department, 99 Church Street, New York, New York 10007 and (f) in
      the
      case of Standard & Poor's, to Standard & Poor's Ratings Services, 55
      Water Street, 40th
      Floor,
      New York, New York 10041, Attention of Asset Backed Surveillance Department
      or,
      as to each of the foregoing, at such other address as shall be designated by
      written notice to the other parties.

     

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

       

                      SECTION
        10.04.  Assignment.
        Notwithstanding anything to the contrary contained herein, except as provided
        in
Sections
        6.03
        and
7.03
        and as
        provided in the provisions of this Agreement concerning the resignation of
        the
        Servicer, this Agreement may not be assigned by the Depositor or the
        Servicer.

    

     

                   SECTION
      10.05.  Limitations on Rights of Others.
      The
      provisions of this Agreement are solely for the benefit of the Depositor, the
      Servicer, the Issuing Entity, the Owner Trustee, the Certificateholder, 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 10.06.  Severability.
      Any
      provision of this Agreement that is prohibited or unenforceable in any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such prohibition or unenforceability without invalidating the remaining
      provisions hereof, and any such prohibition or unenforceability in any
      jurisdiction shall not invalidate or render unenforceable such provision in
      any
      other jurisdiction.

     

                  
      SECTION 10.07.  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 10.08.  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
      10.09.  Governing Law.
      THIS
      AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
      THE
      STATE OF NEW YORK WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER
      THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND
      THE OBLIGATIONS, RIGHTS, REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED
      IN ACCORDANCE WITH SUCH LAWS.

     

    
      
        
        

      

      
        50

        
          

        

      

      
        
        

      

       

                    
        SECTION 10.10.  Assignment to Indenture Trustee.
        The
        Depositor hereby acknowledges and consents to any mortgage, pledge, assignment
        and grant of a security interest by the Issuing Entity to the Indenture Trustee
        pursuant to the Indenture for the benefit of the Noteholders of all right,
        title
        and interest of the Issuing Entity in, to and under the Receivables and the
        other property constituting the Owner Trust Estate or the assignment of any
        or
        all of the Issuing Entity's rights and obligations hereunder to the Indenture
        Trustee.

    

     

                 
      SECTION 10.11.  Nonpetition Covenants.
      

     

                          
      (a)  Notwithstanding any prior termination of this Agreement, the Servicer,
      the Depositor, the Owner Trustee, the Custodian, the Securities Intermediary,
      and the Indenture Trustee shall not, prior to the date which is one year and
      one
      day after the payment in full of the Notes, acquiesce, petition or otherwise
      invoke or cause the Issuing Entity to invoke the process of any court or
      government authority for the purpose of commencing or sustaining a case against
      the Issuing Entity 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 Issuing Entity or any substantial
      part of its property, or ordering the winding up or liquidation of the affairs
      of the Issuing Entity.

     

                       
      (b)  Notwithstanding any prior termination of this Agreement, the Servicer,
      the Issuing Entity, the Owner Trustee, the Custodian, the Securities
      Intermediary, and the Indenture Trustee shall not, prior to the date which
      is
      one year and one day after the payment in full of the Notes, acquiesce, petition
      or otherwise invoke or cause the Depositor to invoke the process of any court
      or
      government authority for the purpose of commencing or sustaining a case against
      the Depositor 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 Depositor or any substantial part of its
      property, or ordering the winding up or liquidation of the affairs of the
      Depositor.

     

                      
      SECTION 10.12.  Limitation of Liability of Owner Trustee and Indenture
      Trustee.
      

     

                                
      (a)  Notwithstanding anything contained herein to the contrary, this
      Agreement has been countersigned by Chase Bank USA, National Association not
      in
      its individual capacity but solely in its capacity as Owner Trustee of the
      Issuing Entity, and in no event shall Chase Bank USA, National Association
      in
      its individual capacity or, except as expressly provided in the Trust Agreement,
      as owner trustee of the Issuing Entity, have any liability for the
      representations, warranties, covenants, agreements or other obligations of
      the
      Issuing Entity 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 Issuing Entity. 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 Issuing Entity hereunder, the Owner Trustee shall
      be subject to, and entitled to the benefits of, the terms and provisions of
      Articles VI, VII and VIII of the Trust Agreement.

     

                             
      (b)  Notwithstanding anything contained herein to the contrary, this
      Agreement has been acknowledged and accepted by U.S. Bank National Association
      not in its individual capacity but solely as Indenture Trustee, Securities
      Intermediary, and Custodian and in no event shall U.S. Bank National Association
      have any liability for the representations, warranties, covenants, agreements
      or
      other obligations of the Issuing Entity 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 Issuing Entity.

     

    
      
        
        

      

      
        51

        
          

        

      

      
        
        

      

    

    [Signature
      Page Follows]

    

     

    
      
        
           

        

        
        

      

      
        52

        
          

        

      

      
        
        

        
          

        

      

    

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

     

    CATERPILLAR
      FINANCIAL ASSET TRUST 2006-A

    

    By:
      CHASE
      BANK USA, NATIONAL ASSOCIATION, 

           
      not in its individual capacity but solely as Owner 

           
      Trustee on behalf of the Issuing Entity,

    

    

    

     By:
      /s/
      Diane P. Ledger

     Name: Diane
      P.
      Ledger

     Title: Assistant
      Vice President

    

    

    CATERPILLAR
      FINANCIAL FUNDING

    CORPORATION,
      as Depositor,

    

    

    

    By:
       /s/
      James A. Duensing

    Name: James
      A.
      Duensing

    Title: Treasurer

    

    

    CATERPILLAR
      FINANCIAL SERVICES

    CORPORATION,
      as Servicer

    

    

    

    By:
       /s/
      James A. Duensing

    Name: James
      A.
      Duensing

    Title: Treasurer

    

    Acknowledged
      and Accepted:

    U.S.
      BANK
      NATIONAL ASSOCIATION,

    not
      in
      its individual capacity but only as 

    Indenture
      Trustee, Custodian and 

    Securities
      Intermediary

    

    

    

    By: /s/
      Melissa A. Rosal 

    Name: Melissa
      A. Rosal

    Title: Vice
      President

    

    Acknowledged
      and Accepted:

    CHASE
      BANK USA, NATIONAL ASSOCIATION,

    not
      in
      its individual capacity but solely 

    as
      Owner
      Trustee of the Issuing Entity,

    

    

    

    By: /s/
      Diane P. Ledger  

    Name: Diane
      P.
      Ledger

    Title: Assistant
      Vice President

    

    

    

    

    

    

    
      
        
          Sale
            and Servicing Agreement

           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    SCHEDULE
      A

     

    SCHEDULE
      OF RECEIVABLES

     

    

    

     

    

    
      
        
          A-1

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    SCHEDULE
      B

     

    LOCATION
      OF RECEIVABLE FILES

     

    4040
      S.
      Eastern Avenue, Suite 346

    Las
      Vegas, Nevada 89121

    

     

    
      
        
           

        

        
        

      

      
        B-1

        
          

        

      

      
        
        

        
          

        

      

    

    SCHEDULE
      C

     

    FORM
      OF RECEIVABLE FILES CERTIFICATION

     

    [DATE]

     

    [Issuing
      Entity]

     

    [Rating
      Agencies]

     

    [Depositor]

     

    
      	 	
              Re:

            	
              Sale
                and Servicing Agreement (the "Sale and Servicing Agreement"), dated as of June 1, 2006 among Caterpillar
                Financial Services
                Corporation, as Servicer, Caterpillar Financial Funding Corporation
                and
                Caterpillar Financial Asset Trust
                2006-A

            

    

         

    Ladies
      and Gentlemen:

     

    In
      accordance with the provisions of Section 3.05 of the above-referenced Sale
      and
      Servicing Agreement, the undersigned hereby certifies that as to each Receivable
      listed on the Schedule of Receivables (other than any Receivable paid in full
      or
      any Receivable listed on the exception report attached hereto), it has reviewed
      the Receivable Files and has determined that (i) all documents required to
      be
      delivered to the Custodian pursuant to the Sale and Servicing Agreement
      (including each of the items in the definition of Receivable File) have been
      delivered to the Custodian, (ii) such documents have been reviewed by it and
      have not been mutilated, damaged, torn or otherwise physically altered
      (handwritten additions, changes or corrections shall not constitute physical
      alteration if initialed by the Obligor) and relate to such Receivable, and
      (iii)
      based on its examination, and only as to the foregoing documents, the
      information set forth on the Schedule of Receivables accurately reflects the
      information set forth in the Receivable Files.

     

    The
      undersigned has not made any independent examination of such documents beyond
      the review specifically required in the above-referenced Sale and Servicing
      Agreement. The undersigned makes no representations as to: (i) the validity,
      legality, enforceability or genuineness of any documents contained in the
      Receivable Files, or (ii) the collectability, insurability, effectiveness or
      suitability of any Receivable identified on the Schedule of
      Receivables.

     

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the above-referenced Sale and Servicing Agreement.

     

    [Signature
      Page Follows]

     

    
      
         

        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

    

     

    CATERPILLAR
      FINANCIAL SERVICES CORPORATION,

    as
      Servicer

    

    

    

    By:_______________________________________

    Name:

    Title:

    

     

    
      
        
           

        

        
        

      

      
        C-2

        
          

        

      

      
        
        

        
          

        

      

    

    SCHEDULE
      D

     

    SERVICER
      REPORT

     

    The
      undersigned hereby certify that (i) they are, respectively, a duly elected
      [title] and [title] of Caterpillar Financial Services Corporation and (ii)
      this
      Servicer Report complies with the requirements of, and is being delivered
      pursuant to, Section 4.09 and Section 5.06 of the Sale and Servicing Agreement
      (the "Sale and Servicing Agreement") dated as of June 1, 2006 between
      Caterpillar Financial Asset Trust 2006-A, Caterpillar Financial Funding
      Corporation and Caterpillar Financial Services Corporation.

     

    Dated:
      ________________________________                       ________________________________________

                                                                                                                   Name:

                                                                                                                  
      Title:

    

    

    

     

                                                                                                                   
      _______________________________________

    Name:

                                                                                                                   
      Title:

    

     

    

     

    
      
        
           

        

        
        

      

      
        
          D-1

        

        
          

        

      

      
        
        

        
          

        

      

    

    
      	
              Caterpillar
                Financial Asset Trust 2006-A

            	 
	
              SERVICER
                REPORT

            	 
	 	 
	
              Record
                Date

            	 
	
              Distribution
                Date

            	
              July
                25, 2006

            
	
              Transaction
                Month

            	
              1

            
	 	 
	
              Collection
                Period Month Begin

            	
              June
                1, 2006

            
	
              Collection
                Period Month End

            	
              June
                30, 2006

            
	
              Previous
                Payment Date (or Closing Date)

            	
              June
                28, 2006

            
	
              Actual
                Days in Accrual Period

            	
              27

            
	 	 
	
              ORIGINAL
                DEAL PARAMETERS

            	 
	
              Initial
                Note Value

            	 
	
              Initial
                Aggregate Contract Balance

            	 
	
              Number
                of Contracts

            	 
	
              Weighted
                Average Annual Percentage Rate

            	 
	
              Weighted
                Average Remaining Term

            	 
	
              Annual
                Servicing Fee Rate

            	 
	
              Reserve
                Account Initial Deposit

            	 
	
              Specified
                Reserve Account Balance

            	 
	
              Class
                A-1 Note Original Principal Balance

            	 
	
              Class
                A-1 Note Rate

            	 
	
              Class
                A-1 Note Final Scheduled Distribution Date

            	 
	
              Class
                A-1 CUSIP Number

            	 
	
              Class
                A-2 Note Original Principal Balance

            	 
	
              Class
                A-2 Note Rate

            	 
	
              Class
                A-2 Note Final Scheduled Distribution Date

            	 
	
              Class
                A-2 CUSIP Number

            	 
	
              Class
                A-3 Note Original Principal Balance

            	 
	
              Class
                A-3 Note Rate

            	 
	
              Class
                A-3 Note Final Scheduled Distribution Date

            	 
	
              Class
                A-3 CUSIP Number

            	 
	
              Class
                A-4 Note Original Principal Balance

            	 
	
              Class
                A-4 Note Rate

            	 
	
              Class
                A-4 Note Final Scheduled Distribution Date

            	 
	
              Class
                A-4 CUSIP Number

            	 
	
              Class
                B Note Original Principal Balance

            	 
	
              Class
                B Note Rate

            	 
	
              Class
                B Note Final Scheduled Distribution Date

            	 
	
              Class
                B CUSIP Number

            	 
	
              Certificate
                Balance

            	 
	 	 
	
              INPUTS
                FROM PREVIOUS PERIOD SERVICER REPORT

            	 
	
              Note
                Value

            	 
	
              Aggregate
                Contract Balance

            	 
	
              Number
                of Contracts

            	 
	
              Weighted
                Average Annual Percentage Rate

            	 
	
              Weighted
                Average Remaining Term

            	 
	
              Reserve
                Account Balance

            	 
	
              Class
                A-1 Note Outstanding Principal Balance

            	 
	
              Class
                A-1 Note Interest Shortfall

            	 
	
              Class
                A-2 Note Outstanding Principal Balance

            	 
	
              Class
                A-2 Note Interest Shortfall

            	 
	
              Class
                A-3 Note Outstanding Principal Balance

            	 
	
              Class
                A-3 Note Interest Shortfall

            	 
	
              Class
                A-4 Note Outstanding Principal Balance

            	 
	
              Class
                A-4 Note Interest Shortfall

            	 
	
              Class
                B Note Outstanding Principal Balance

            	 
	
              Class
                B Note Interest Shortfall

            	 
	
              Servicing
                Fee Shortfall

            	 
	 	 
	
              CURRENT
                COLLECTION PERIOD ACTIVITY

            	 
	
              Total
                Interest Collections

            	 
	
              Total
                Principal Collections

            	 
	
              Residual
                Collections

            	 
	
              Warranty
                Repurchases Contracts

            	 
	
              Administrative
                Repurchases

            	 
	
              Liquidation
                Proceeds

            	 
	
              Reserve
                Account Reinvestment Income 

            	 
	
              Total
                Available Amount

            	 
	 	 
	
              Beginning
                Note Value

            	 
	
              Ending
                Note Value

            	 
	
              Beginning
                Aggregate Contract Balance

            	 
	
              Ending
                Aggregate Contract Balance 

            	 
	
              Number
                of Contracts at Beginning of Period

            	 
	
              Number
                of Contracts at End of Period

            	 
	
              Weighted
                Average Annual Percentage Rate

            	 
	
              Weighted
                Average Remaining Term

            	 
	
              Cumulative
                Prepayment Rate

            	 
	
              Aggregate
                Scheduled Amounts 31-60 days past due

            	 
	
              Aggregate
                Scheduled Amounts 61-90 days past due

            	 
	
              Aggregate
                Scheduled Amounts 91-120 days past due

            	 
	
              Aggregate
                Scheduled Amounts 121 days or more past due

            	 
	
              Net
                Losses on Liquidated Receivables this Period

            	 
	
              Repossessed
                Equipment not Sold or Reassigned (Beginning)

            	 
	
              Repossessed
                Equipment not Sold or Reassigned (End)

            	 
	 	 
	
              CALCULATION
                OF DISTRIBUTABLE AMOUNTS

            	 
	
              Servicing
                Fee Due

            	 
	
              Is
                CFSC or Affiliate Servicer (Yes / No)?

            	 
	
              Has
                Reserve Account Reached the Specified Reserve Account Balance (Yes
                /
                No)?

            	 
	 	 
	
              Administration
                Fee

            	 
	 	 
	
              Class
                A-1 Noteholders' Monthly Interest Distributable Amount

            	 
	
              Class
                A-1 Noteholders' Interest Carryover Shortfall

            	 
	
              Class
                A-1 Noteholders' Interest Distributable Amount

            	 
	 	 
	
              Class
                A-2 Noteholders' Monthly Interest Distributable Amount

            	 
	
              Class
                A-2 Noteholders' Interest Carryover Shortfall

            	 
	
              Class
                A-2 Noteholders' Interest Distributable Amount

            	 
	 	 
	
              Class
                A-3 Noteholders' Monthly Interest Distributable Amount

            	 
	
              Class
                A-3 Noteholders' Interest Carryover Shortfall

            	 
	
              Class
                A-3 Noteholders' Interest Distributable Amount

            	 
	 	 
	
              Class
                A-4 Noteholders' Monthly Interest Distributable Amount

            	 
	
              Class
                A-4 Noteholders' Interest Carryover Shortfall

            	 
	
              Class
                A-4 Noteholders' Interest Distributable Amount

            	 
	 	 
	
              Class
                A Noteholders' Monthly Interest Distributable Amount

            	 
	
              Class
                A Noteholders' Interest Carryover Shortfall

            	 
	
              Class
                A Noteholders' Interest Distributable Amount

            	 
	 	 
	
              First
                Priority Principal Distribution Amount

            	 
	 	 
	
              Class
                B Noteholders' Monthly Interest Distributable Amount

            	 
	
              Class
                B Noteholders' Interest Carryover Shortfall

            	 
	
              Class
                B Noteholders' Interest Distributable Amount

            	 
	 	 
	
              Second
                Priority Principal Distribution Amount

            	 
	 	 
	
              Net
                Excess Spread Amount

            	 
	 	 
	
              Regular
                Principal Distribution Amount

            	 
	 	 
	
              Total
                Required Payment

            	 
	 	 
	
              Draw
                from Reserve Account

            	 
	 	 
	
              Total
                Distribution Amount

            	 
	 	 
	
              Excess
                Cash flow deposited to Certificate Distribution Account

            	 
	 	 
	 	 
	
              DISTRIBUTIONS
                FROM COLLECTION ACCOUNT

            	 
	
              1.
                Servicing Fee 

            	 
	
              2.
                Administration Fee 

            	 
	
              3.
                Class A Noteholders' Interest Distributable Amount to Class A
                Noteholders

            	 
	
              4.
                First Priority Principal Distribution Amount to Principal Distribution
                Account

            	 
	
              5.
                Class B Noteholders' Interest Distributable Amount to Class B
                Noteholders

            	 
	
              6.
                Second Priority Principal Distribution Amount to Principal Distribution
                Account

            	 
	
              7.
                Deposit to Reserve Account

            	 
	
              8.
                Regular Principal Distribution Amount to Principal Distribution
                Account

            	 
	
              9.
                Indenture Trustee Fees

            	 
	
              10.
                Custodian Fees

            	 
	
              11.
                Deposit to Certificate Distribution Account

            	 
	 	 
	
              DISTRIBUTIONS
                FROM PRINCIPAL DISTRIBUTION ACCOUNT

            	 
	
              1.
                Principal to Class A-1 Noteholders

            	 
	
              2.
                Principal to Class A-2 Noteholders

            	 
	
              3.
                Principal to Class A-3 Noteholders

            	 
	
              4.
                Principal to Class A-4 Noteholders

            	 
	
              5.
                Principal to Class B Noteholders

            	 
	
              6.
                Deposit to Certificate Distribution Account

            	 
	 	 
	
              RECONCILIATION
                OF RESERVE ACCOUNT

            	 
	
              Beginning
                Reserve Account Balance

            	 
	
              Draw
                from Reserve Account to cover shortfalls

            	 
	
              Interim
                Specified Reserve Account Balance

            	 
	
              Deposit
                to Reserve Account Needed

            	 
	
              Deposit
                to Reserve Account from Collection Account

            	 
	
              Specified
                Reserve Account Balance

            	 
	
              Reserve
                Account Release deposited into Certificate Distribution
                Account

            	 
	
              Ending
                Reserve Account Balance

            	 
	 	 
	
              SUMMARY
                OF DISTRIBUTIONS

            	 
	
              Servicing
                Fee Paid to Servicer

            	 
	
              Servicing
                Fee Shortfall

            	 
	 	 
	
              Class
                A-1 Interest Paid

            	 
	
              Class
                A-1 Interest Shortfall

            	 
	
              Class
                A-1 Principal Paid

            	 
	
              Ending
                Class A-1 Principal Balance

            	 
	 	 
	
              Class
                A-2 Interest Paid

            	 
	
              Class
                A-2 Interest Shortfall

            	 
	
              Class
                A-2 Principal Paid

            	 
	
              Ending
                Class A-2 Principal Balance

            	 
	 	 
	
              Class
                A-3 Interest Paid

            	 
	
              Class
                A-3 Interest Shortfall

            	 
	
              Class
                A-3 Principal Paid

            	 
	
              Ending
                Class A-3 Principal Balance

            	 
	 	 
	
              Class
                A-4 Interest Paid

            	 
	
              Class
                A-4 Interest Shortfall

            	 
	
              Class
                A-4 Principal Paid

            	 
	
              Ending
                Class A-4 Principal Balance

            	 
	 	 
	
              Class
                B Interest Paid

            	 
	
              Class
                B Interest Shortfall

            	 
	
              Class
                B Principal Paid

            	 
	
              Ending
                Class B Principal Balance

            	 
	 	 
	
              Deposit
                to Certificate Distribution Account

            	 
	 	 
	
              CERTIFICATEHOLDER
                INFORMATION

            	 
	 	 
	
              ORIGINAL
                DEAL PARAMETERS

            	 
	
              Certificate
                Balance

            	 
	 	 
	
              INPUTS
                FROM PREVIOUS PERIOD STATEMENT TO
                CERTIFICATEHOLDER

            	 
	
              Certificate
                Balance

            	 
	
              Certificate
                Pool Factor

            	 
	 	 
	
              CALCULATION
                OF DISTRIBUTABLE AMOUNTS

            	 
	
              Deposit
                to Certificate Distribution Account from Collection Account
                plus

            	 
	
              Deposit
                to Certificate Distribution Account from Principal Distribution
                Account

            	 
	
              Deposit
                to Certificate Distribution Account from Reserve Account

            	 
	
              Total
                Deposit to Certificate Distribution Account

            	 
	 	 
	
              DISTRIBUTIONS
                FROM CERTIFICATE DISTRIBUTION ACCOUNT

            	 
	
              1.
                Principal to Fixed Rate Certificateholders

            	 
	
              2.
                Any remaining amounts to the Depositor

            	 
	
              3.
                Amount of Principal being paid on Certificate

            	 
	
              per
                $1,000 original principal balance

            	 
	 	 
	
              SUMMARY
                OF DISTRIBUTIONS

            	 
	
              Certificates
                Principal Paid

            	 
	
              Ending
                Certificates Principal Balance

            	 
	
              Certificate
                Pool Factor

            	 
	 	 
	
              Remaining
                amounts to the Depositor

            	 
	 	 
	 	 
	 	 
	
              NOTEHOLDER
                INFORMATION 

            	 
	 	 
	
              (i)
                Amount of principal being paid on Notes

            	 
	 	 
	
              (a)
                Class A-1 Notes (CUSIP No. [____])

            	 
	
              per
                $1,000 original principal balance

            	 
	 	 
	
              (b)
                Class A-2 Notes (CUSIP No. [____])

            	 
	
              per
                $1,000 original principal balance

            	 
	 	 
	
              (c)
                Class A-3 Notes (CUSIP No. [_____])

            	 
	
              per
                $1,000 original principal balance

            	 
	 	 
	
              (d)
                Class A-4 Notes (CUSIP No. [_____])

            	 
	
              per
                $1,000 original principal balance

            	 
	 	 
	
              (e)
                Class B Notes (CUSIP No. [_____])

            	 
	
              per
                $1,000 original principal balance

            	 
	 	 
	
              (f)
                Total

            	 
	 	 
	 	 
	
              (ii) Amount
                of interest being paid on Notes

            	 
	 	 
	
              (a)
                Class A-1 Notes (CUSIP No. [_____])

            	 
	
              per
                $1,000 original principal balance

            	 
	 	 
	
              (b)
                Class A-2 Notes (CUSIP No. [_____])

            	 
	
              per
                $1,000 original principal balance

            	 
	 	 
	
              (c)
                Class A-3 Notes (CUSIP No. [_____])

            	 
	
              per
                $1,000 original principal balance

            	 
	 	 
	
              (d)
                Class A-4 Notes (CUSIP No. [____])

            	 
	
              per
                $1,000 original principal balance

            	 
	 	 
	
              (e)
                Class B Notes (CUSIP No. [____])

            	 
	
              per
                $1,000 original principal balance

            	 
	 	 
	
              (f)
                Total

            	 
	 	 
	
              (iii)
                (a) Aggregate Contract Balance at beginning of related collection
                period

            	 
	
              (b)
                Aggregate Contract Balance at end of related collection
                period

            	 
	
              (c)
                Note Value at beginning of related collection period

            	 
	
              (d)
                Note Value at end of related collection period

            	 
	 	 
	
              (iv)
                Before and after giving effect to distributions on this Distribution
                Date

            	 
	 	 
	
              (a)
                (1) outstanding principal amount of Class A-1 Notes

            	 
	
              (2)
                outstanding principal amount of Class A-1 Notes

            	 
	
              (3)
                Class A-1 Note Pool Factor

            	 
	
              (4)
                Class A-1 Note Pool Factor

            	 
	 	 
	
              (b)
                (1) outstanding principal amount of Class A-2 Notes

            	 
	
              (2)
                outstanding principal amount of Class A-2 Notes

            	 
	
              (3)
                Class A-2 Note Pool Factor

            	 
	
              (4)
                Class A-2 Note Pool Factor

            	 
	 	 
	
              (c)
                (1) outstanding principal amount of Class A-3 Notes

            	 
	
              (2)
                outstanding principal amount of Class A-3 Notes

            	 
	
              (3)
                Class A-3 Note Pool Factor

            	 
	
              (4)
                Class A-3 Note Pool Factor

            	 
	 	 
	
              (d)
                (1) outstanding principal amount of Class A-4 Notes

            	 
	
              (2)
                outstanding principal amount of Class A-4 Notes

            	 
	
              (3)
                Class A-4 Note Pool Factor

            	 
	
              (4)
                Class A-4 Note Pool Factor

            	 
	 	 
	
              (e)
                (1) outstanding principal amount of Class B Notes

            	 
	
              (2)
                outstanding principal amount of Class B Notes

            	 
	
              (3)
                Class B Note Pool Factor

            	 
	
              (4)
                Class B Note Pool Factor

            	 
	 	 
	
              (v)
                Amount of Servicing Fee paid

            	 
	 	 
	
              (vi)
                Amount of Administration fee being paid

            	 
	 	 
	
              (vii)
                Other expenses being paid

            	 
	 	 
	
              (viii)
                Cumulative Prepayment Rate for the related Collection
                Period

            	 
	 	 
	
              (ix)
                Three-Month Rolling Over 60-Day Delinquency Percentage

            	 
	 	 
	
              (x)
                Aggregate Amount of Realized Losses for the related Collection
                Period

            	 
	 	 
	
              (xi)
                Aggregate amount of Cumulative Realized Losses through the related
                

            	 
	
              Collection
                period

            	 
	 	 
	
              (xii)
                Aggregate Purchase Amounts for the related Collection
                Period

            	 
	 	 
	
              (xiii)
                (a) Balance of Reserve Account at beginning of related Collection
                Period

            	 
	
              (b)
                Balance of Reserve Account at end of related Collection
                Period

            	 
	 	 
	
              (xiv)
                Specified Reserve Account Balance at end of related Collection
                Period

            	 
	 	 

    

    
      
         

        
        

      

      
        D-3

        
          

        

      

      
        
        

      

    

    

    

    SCHEDULE
      E

     

    TRUSTEE
      INSTRUCTIONS

     

    The
      undersigned hereby certify that (i) they are, respectively, a duly elected
      [title] and [title] of Caterpillar Financial Services Corporation and (ii)
      Exhibit
      A
      hereto
      complies with the requirements of, and is being delivered pursuant to,
Section
      5.04(b)
      of the
      Sale and Servicing Agreement (the "Sale and Servicing Agreement") dated as
      of
      June 1, 2006 between Caterpillar Financial Asset Trust 2006-A, Caterpillar
      Financial Funding Corporation and Caterpillar Financial Services
      Corporation.

     

    

     

    Dated:_________________________________________                
      ________________________________________  

                
      Name:

                 Title:

     

                                                                                                                                
      ________________________________________

                                                                                                                                
      Name:

                
      Title:

    

     

    
      
        
           

        

        
        

      

      
        E-1

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      A

    TO
      SCHEDULE E

    

    
      	
              TRUSTEE
                INSTRUCTIONS

            	 
	
               

              Attn:
                Melissa Rosal, Vice President

            	 
	
              U.S.
                Bank National Association

            	 
	
              Fax:
                (312) 325-8905

            	 
	 	 
	
              Re:
                Caterpillar Financial Asset Trust 2006-A, Account
                #[______]

            	 
	 	 
	
              Please
                make the following distributions from the above referenced
                account:

            	 
	 	 
	
              (i
                ) Payment of Servicing Fee (including any previously unpaid Servicing
                Fees) to Servicer pursuant to Section 5.04 (b)(i ):

            	 
	
               

            	 
	 	 
	
              (ii)
                to the Administrator under the Administration Agreement, the
                

            	 
	
              Administration
                Fee (including any previously unpaid Admin Fees)

            	 
	 	 
	
              (iii)
                Class A Noteholders' Interest Distributable Amount to be remitted
                to the
                Class A Noteholders:

            	 
	
               

            	 
	 	 
	
              (iv)
                Amount of First Priority Principal Distribution Amount to be deposited
                to
                the Principal Distribution Account pursuant to Section 5.04 (b) (iv)
                :

            	 
	
               

            	 
	 	 
	
              (v)
                Class B Noteholders' Interest Distributable Amount to be remitted
                to the
                Class B Noteholders:

            	 
	
               

            	 
	 	 
	
              (vi)
                Amount of Second Priority Principal Distribution Amount to be deposited
                to
                the Principal Distribution Account pursuant to Section 5.04 (b) (vi)
                :

            	 
	
               

            	 
	 	 
	
              (vii)
                Deposit to Reserve Account pursuant to Section 5.04
                (b)(vii):

            	 
	 	 
	
              (viii)
                Amount to be deposited to the Principal Distribution Account
                

            	 
	
              for
                the Regular Principal Distribution pursuant to Section
                5.04(b)(viii):

            	 
	 	 
	
              (ix)
                The amount to be deposited to the Certificate Distribution Account
                pursuant to Section 5.04 (b) (x) for distribution to the holder of
                the
                Certificate:

            	 
	
               

            	 
	 	 
	
              (x)
                Amount to be distributed from the Principal Distribution Account
                to each
                Class of Noteholders, and to the holders of the
                Certificate:

            	 
	
               

            	 
	 	 
	
              (xi)
                Amount to be withdrawn from the Reserve Account and deposited to
                the
                Collection Account pursuant to Section 5.05(b); and

            	 
	
               

            	 
	 	 
	
              (xii)
                Amount to be withdrawn from the Reserve Account and deposited to
                the
                Certificate Distribution Account pursuant to Section
                5.05(c)

            	 
	 	 
	 	 
	 	 
	
              Wire
                instructions for Certificate Distribution Account: 

            	 
	 	 
	
              JPMORGAN
                CHASE

            	 
	
              New
                York, NY

            	 
	
              ABA#
                021 000 021

            	 
	
              FOR
                FURTHER CREDIT TO:

            	 
	
              Account
                # [__________]

            	 
	
              Reference:
                Cat Financial 2006-A Certificate Distribution Account

            	 
	
              Attention:
                Inetta Coats Tel: (214) 468-6424 Fax: (214) 468-6428

            	 
	
              Veronica
                Avila Tel: (214) 468-6041

            	 
	 	 
	
              Wire
                instructions when remitting Excess Reserve and amounts

            	 
	
              due
                Depositor (when not sent to Certificate Distribution
                Account):

            	 
	 	 
	
              JPMorganChase
                Bank

            	 
	
              ABA#
                021000021

            	 
	
              FOR
                FURTHER CREDIT TO:

            	 
	
              Caterpillar
                Financial Funding Corporation

            	 
	
              Account
                # [__________]

            	 
	
              Reference:
                CAT FIN 2006-A

            	 
	 	 
	
              Servicer
                Contact: Dena Kinnard (615) 341-8459

            	 
	
              Caterpillar
                Financial Services Corporation

            	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

    

    

    

    
      
        
        

      

      
        E-2Exhibit 10.1

     

    EXHIBIT
      10.1

    
      

      

    

     

    

     

     

    PURCHASE
      AGREEMENT

     

     

    between

     

     

    CATERPILLAR
      FINANCIAL SERVICES CORPORATION

     

     

    Seller

     

     

    and

     

     

    CATERPILLAR
      FINANCIAL FUNDING CORPORATION

     

     

    Depositor

     

     

    Dated
      as
      of June 1, 2006

     

     

    

     

    
      

      

    

     

    

     

    

     

     

     

     

    

     

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

           

        

      

    

    
 

    TABLE
      OF CONTENTS

    ARTICLE
      I              
CERTAIN
      DEFINITIONS...............................................................................................................................................1

     

    SECTION
      1.01.    
DEFINITIONS.....................................................................................................................................................................1

     

    SECTION
      1.02.     OTHER DEFINITIONAL
      PROVISIONS..........................................................................................................................3

     

    ARTICLE
      II             
CONVEYANCE
      OF
      RECEIVABLES.............................................................................................................................4

     

    SECTION
      2.01.     CONVEYANCE OF
      RECEIVABLES................................................................................................................................4

     

    SECTION
      2.02.     OWNERSHIP AND CUSTODY OF RECEIVABLES
      FILES.........................................................................................5

     

    SECTION
      2.03.     BOOKS AND
      RECORDS..................................................................................................................................................5

     

    SECTION
      2.04.     CUSTODY OF RECEIVABLE
      FILES...............................................................................................................................5

     

    SECTION
      2.05.     CERTIFICATIONS BY THE SERVICER AND THE
      CUSTODIAN............................................................................5

     

    SECTION
      2.06.     THE
      CLOSING...................................................................................................................................................................6

     

    ARTICLE
      III              
REPRESENTATIONS
      AND
      WARRANTIES.........................................................................................................6

     

    SECTION
      3.01.     REPRESENTATIONS AND WARRANTIES OF
      DEPOSITOR.................................................................................6

     

    SECTION
      3.02.     REPRESENTATIONS AND WARRANTIES OF
      SELLER.........................................................................................7

     

    ARTICLE
      IV              
CONDITIONS...........................................................................................................................................................12

     

    SECTION
      4.01.     CONDITIONS TO THE OBLIGATION OF THE
      DEPOSITOR................................................................................12

     

    SECTION
      4.02.      CONDITIONS TO OBLIGATION OF
      SELLER.........................................................................................................13

     

    SECTION
      4.03.     JUNIOR LIENS ON FINANCED EQUIPMENT AND OTHER
      EQUIPMENT.......................................................13

     

    ARTICLE
      V              
COVENANTS
      OF THE SELLER AND THE
      DEPOSITOR...................................................................................14

     

    SECTION
      5.01.     PROTECTION OF RIGHT, TITLE AND
      INTEREST.................................................................................................14

     

    SECTION
      5.02.     OTHER LIENS OR
      INTERESTS...................................................................................................................................14

     

    SECTION
      5.03.     CHIEF EXECUTIVE
      OFFICE.........................................................................................................................................15

     

    SECTION
      5.04.     CORPORATE
      EXISTENCE...........................................................................................................................................15

     

    SECTION
      5.05.    
INDEMNIFICATION.....................................................................................................................................................17

     

    SECTION
      5.06.     REGULATION AB
      COMPLIANCE.............................................................................................................................18

     

    ARTICLE
      VI              
MISCELLANEOUS
      PROVISIONS.........................................................................................................................18

     

    SECTION
      6.01.     OBLIGATIONS OF
      SELLER.........................................................................................................................................18

     

    SECTION
      6.02.     REPURCHASE
      EVENTS...............................................................................................................................................18

     

    SECTION
      6.03.     DEPOSITOR ASSIGNMENT OF REPURCHASED
      RECEIVABLES......................................................................18

     

    SECTION
      6.04.     ISSUING
      ENTITY..........................................................................................................................................................18

     

    
      
         

      

      
        -i-

        
          

        

      

      
         

      

    

     

     

    TABLE
      OF CONTENTS 

    (continued)

     

    SECTION
      6.05.    
AMENDMENT..............................................................................................................................................................18

     

    SECTION
      6.06.    
WAIVERS......................................................................................................................................................................19

     

    SECTION
      6.07.    
NOTICES.......................................................................................................................................................................19

     

    SECTION
      6.08.     COSTS AND
      EXPENSES............................................................................................................................................19

     

    SECTION
      6.09.     REPRESENTATIONS OF SELLER AND
      DEPOSITOR...........................................................................................19

     

    SECTION
      6.10.     CONFIDENTIAL
      INFORMATION............................................................................................................................20

     

    SECTION
      6.11.    
HEADINGS...................................................................................................................................................................20

     

    SECTION
      6.12.     GOVERNING
      LAW.....................................................................................................................................................20

     

    SECTION
      6.13.    
COUNTERPARTS......................................................................................................................................................,20

     

    

    EXHIBIT
      A ASSIGNMENT
      OF RECEIVABLES

    

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    PURCHASE
      AGREEMENT, dated as of June 1, 2006, between CATERPILLAR FINANCIAL SERVICES
      CORPORATION, a Delaware corporation, as seller (together with its successors
      and
      assigns, the "Seller"),
      and
      CATERPILLAR FINANCIAL FUNDING CORPORATION, a Nevada corporation, as purchaser
      (together with its successors and assigns, the "Depositor").

     

    WHEREAS
      in the regular course of its business, the Seller has originated or purchased
      certain fixed-rate retail installment sale contracts and finance lease contracts
      secured by new and used machinery and equipment; and

     

    WHEREAS
      the Seller and the Depositor wish to set forth the terms pursuant to which
      the
      Receivables (as hereinafter defined) are to be sold by the Seller to the
      Depositor, which Receivables will be transferred by the Depositor, pursuant
      to
      the Sale and Servicing Agreement (as hereinafter defined), to Caterpillar
      Financial Asset Trust 2006-A, a Delaware statutory trust (the "Issuing Entity"),
      and the Issuing Entity will issue (i) an Asset Backed Certificate (the
      "Certificate") pursuant to the Trust Agreement (as hereinafter defined), which
      will represent an undivided beneficial interest in the Issuing Entity and
      (ii) the Notes (as hereinafter defined) pursuant to the Indenture (as
      hereinafter defined), which will represent obligations of the Issuing
      Entity.

     

    NOW,
      THEREFORE, in consideration of the foregoing, other good and valuable
      consideration and the mutual terms and covenants contained herein, the parties
      hereto agree as follows:

     

    ARTICLE
      I  

     

    CERTAIN
      DEFINITIONS

     

    SECTION
      1.01.  Definitions.
      Except
      as otherwise specified herein or as the context may otherwise require, the
      following terms have the respective meanings set forth below for all purposes
      of
      this Agreement.

     

    "Administration
      Agreement"
      means
      the Administration Agreement, dated as of June 1, 2006, among the Issuing
      Entity, the Depositor, the Seller, as administrator, and U.S. Bank National
      Association, as indenture trustee, as the same may be amended, modified or
      supplemented from time to time.

     

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

     

    "Affiliate
      Trust Security Interest"
      has the
      meaning specified in Section 4.03(b).

     

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

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    "Assignment"
      means
      the document of assignment, a form of which is attached as
      Exhibit A.

     

    "Basic
      Documents"
      has the
      meaning specified in the Indenture.

     

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

     

    "Closing
      Date"
      means
      June 28, 2006.

     

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

     

    "Custodian"
      means
      U.S. Bank National Association, in its capacity as custodian under the Custodial
      Agreement, and its successors in such capacity.

     

    "Custodial
      Agreement"
      means
      the Custodial Agreement, dated as of June 1, 2006, among the Seller, the
      Depositor, the Issuing Entity and the Custodian, as the same may be amended,
      modified or supplemented from time to time.

     

    "Indenture"
      means
      the Indenture, dated as of June 1, 2006, between the Issuing Entity and U.S.
      Bank National Association, as indenture trustee, as the same may be amended,
      modified or supplemented from time to time.

     

    "Notes"
      means
      the Class A-1 5.45498% Asset Backed Notes, the Class A-2 5.59% Asset Backed
      Notes, the Class A-3 5.57% Asset Backed Notes, the Class A-4 5.62% Asset Backed
      Notes and the Class B 5.71% Asset Backed Notes issued pursuant to the
      Indenture.

     

    "Other
      Equipment"
      has the
      meaning specified in Section 4.03(b).

     

    "Other
      Obligation"
      has the
      meaning specified in Section 4.03(a).

     

    "Other
      Security Interest"
      has the
      meaning specified in Section 4.03(a).

     

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

     

    "Prospectus"
      means
      the Prospectus (which consists of a base prospectus dated June 19, 2006,
      and a prospectus supplement dated June 20, 2006) pursuant to which the
      Notes were offered.

     

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

     

    "Receivable
      Security Interest"
      has the
      meaning specified in Section 4.03(a).

     

    "Repurchase
      Event"
      has the
      meaning specified in Section 6.02(a).

     

    "Sale
      and Servicing Agreement"
      means
      the Sale and Servicing Agreement, dated as of June 1, 2006, among the Issuing
      Entity, the Depositor (in its capacity as seller thereunder) and the Seller
      (in
      its capacity as Servicer thereunder), as the same may be amended, modified
      or
      supplemented from time to time.

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    "Schedule
      of Receivables"
      means
      the list of Receivables annexed as Schedule A (which may be in the form of
      microfiche), as the same may be amended, modified or supplemented from time
      to
      time.

     

    "Trust
      Agreement"
      means
      the Amended and Restated Trust Agreement, dated as of June 28, 2006,
      between the Depositor and Chase Bank USA, National Association, as owner
      trustee, as the same may be amended, modified or supplemented from time to
      time.

     

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

     

    SECTION
      1.02.  Other
      Definitional Provisions.
      

     

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

     

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

     

    (c)  As
      used
      in this Agreement and in any document made or delivered pursuant hereto,
      accounting terms not defined in this Agreement or in any such other document,
      and accounting terms partly defined in this Agreement or in any such 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 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 other document shall control.

     

    (d)  The
      words
      "hereof," "herein," "hereunder," and words of similar import when used in this
      Agreement shall refer to this Agreement as a whole and not to any particular
      provision of this Agreement; Section, Schedule and Exhibit references contained
      in this Agreement are references to Sections, Schedules and Exhibits in or
      to
      this Agreement unless otherwise specified; the term "including" shall mean
      "including without limitation"; and the term "or" is not exclusive. Terms used
      herein that are defined in the New York UCC and not otherwise defined herein
      shall have the meanings set forth in the New York UCC, unless the context
      requires otherwise. Any reference herein to the Administration Agreement, the
      Custodial Agreement, the Indenture, the Sale and Servicing Agreement or the
      Trust Agreement means such agreement as in effect on the Closing
      Date.

     

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

     

    
      
         

      

      
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    ARTICLE
      II  

     

    CONVEYANCE
      OF RECEIVABLES

     

    SECTION
      2.01.  Conveyance
      of Receivables.
      In
      consideration of the sale on the Closing Date of $979,999,737 in Contract
      Balance of Receivables as of the Cut-off Date, the Depositor shall deliver
      to or
      upon the order of the Seller cash in an amount of $962,716,526.28. The Seller
      does hereby sell, transfer, assign, set over and otherwise convey to the
      Depositor, without recourse (subject to the obligations herein), all right,
      title and interest in and to the following, whether now owned or hereafter
      acquired:

     

    (a)  all
      right, title and interest of the Seller in and to the Receivables, and all
      monies (including accrued interest) due thereunder on or after the Cut-off
      Date;

     

    (b)  the
      interests of the Seller in the security interests in the Transaction Equipment
      granted by Obligors pursuant to the Receivables and any other interest of the
      Seller in such Transaction Equipment, including any Liquidation
      Proceeds;

     

    (c)  the
      interest and rights of the Seller in any proceeds with respect to the
      Receivables from claims on any physical damage, credit life, liability or
      disability insurance policies covering Financed Equipment or Obligors, as the
      case may be;

     

    (d)  the
      interest of the Seller in any proceeds of repossessed or returned Transaction
      Equipment;

     

    (e)  the
      interest of the Seller in any proceeds from recourse to, or other payments
      by,
      Dealers on Receivables; and

     

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

     

    It
      is the
      express intent of the parties hereto that the conveyance of the Receivables
      and
      the other property described above by the Seller to the Depositor as provided
      in
      this Agreement be, and be construed as, a sale of the Receivables by the Seller
      to the Depositor. It is, further, not the intention of the parties that such
      conveyance be deemed the grant of a security interest in the Receivables or
      the
      other property described above by the Seller to the Depositor to secure a debt
      or other obligation of the Seller. However, in the event, notwithstanding the
      intent of the parties, the Receivables or the other property described above
      are
      held to be property of the Seller, or if for any reason this Agreement is held
      or deemed to create a security interest in the Receivables or the other property
      described above then, (a) this Agreement shall be a security agreement
      within the meaning of Article 9 of the New York UCC; and (b) the Seller
      hereby grants to the Depositor a security interest in all of the Seller's right,
      title, and interest, whether now owned or hereafter acquired, in and to the
      property described in clauses (a) through (f) above, as security for the
      obligations of the Seller hereunder. In connection herewith, the Depositor
      (or
      its assignee) shall have all of the rights and remedies of a secured party
      under
      the UCC.

     

    Any
      assignment of the interest of the Depositor pursuant to this Section
      2.01
      shall
      also be an assignment of the security interest created hereby. The Seller and
      the Depositor shall, to the extent consistent with this Agreement, take such
      actions as may be necessary to ensure that, if this Agreement creates a security
      interest in the Receivables, such security interest would be a perfected
      security interest of first priority under applicable law and will be maintained
      as such throughout the term of the Agreement.

    

    
      
         

      

      
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    SECTION
      2.02.  Ownership
      and Custody of Receivables Files.

     

    (a)  Upon
      the
      acceptance by the Seller of the amount set forth in Section 2.01, the
      ownership of each Receivable and the contents of the related Receivables File
      shall be vested in the Depositor.

     

    (b)  In
      connection with the sale of the Receivables pursuant to Section 2.01,
      within 30 days of the Closing Date, the Seller shall deliver each Receivable
      File to the Custodian on behalf of the Depositor.

     

    SECTION
      2.03.  Books
      and Records.

     

    The
      transfer of each Receivable shall be reflected on the Seller's balance sheets
      and other financial statements prepared in accordance with generally accepted
      accounting principles as a sale of assets by the Seller to the Depositor. The
      Seller shall be responsible for maintaining, and shall maintain, a complete
      and
      accurate set of accounts, records and computer files for each Receivable which
      shall be clearly marked to reflect the ownership of each Receivable by the
      Depositor.

     

    SECTION
      2.04.  Custody
      of Receivable Files.
      Pursuant to the Custodial Agreement the Depositor has appointed the Custodian,
      and the Custodian accepted such appointment, to act as custodian of the
      Receivables Files.

     

    SECTION
      2.05.  Certifications
      by the Servicer and the Custodian.

     

    (a)  In
      accordance with the terms of the Sale and Servicing Agreement, the Servicer
      will
      review the Receivable Files and deliver the certification required by Section
      3.05(a) of the Sale and Servicing Agreement.

     

    (b)  In
      accordance with the terms of the Custodial Agreement, the Custodian will review
      each of the Receivable Files and deliver the certifications or notices required
      by Sections 3.1 and 4.1 of the Custodial Agreement. It is understood that the
      scope of the Custodian's review of the Receivable Files is limited solely to
      confirming that it has received each Receivable File. The Seller agrees to
      use
      reasonable efforts to cause to be delivered to the Custodian any Receivable
      File
      that the Custodian determines is missing and to cause to be remedied a material
      defect in a document constituting part of a Receivables File. If, however,
      within 60 days after it has delivered the Receivable Files to the Custodian
      (A)
      the Seller has not caused such missing Receivable File to be delivered or (B)
      the Seller has not caused to be remedied any such material defect, and such
      defect materially and adversely affects the interest of the Depositor in the
      related Receivable, the Seller shall remit the Purchase Amount with respect
      to
      such Receivable to the Depositor and the Depositor shall reconvey such
      Receivable to the Seller. The sole remedy of the Depositor, the Issuing Entity,
      the Owner Trustee, the Indenture Trustee, the Noteholders or the
      Certificateholder with respect to a breach shall be to require the Seller to
      repurchase Receivables pursuant to this Section, subject to the conditions
      contained herein. The Owner Trustee shall have no duty to conduct any
      affirmative investigation as to the occurrence of any condition requiring the
      repurchase of any Receivable pursuant to this Section.

     

    
      
         

      

      
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    SECTION
      2.06.  The
      Closing.

     

    The
      conveyance of the Receivables and the other property described in
      Section 2.01 shall take place on the Closing Date, simultaneously with the
      closing of the transactions contemplated by the Sale and Servicing Agreement,
      the Indenture, the underwriting agreements related to the Notes and the other
      Basic Documents.

     

    ARTICLE
      III  

     

    REPRESENTATIONS
      AND WARRANTIES

     

    SECTION
      3.01.  Representations
      and Warranties of Depositor.
      The
      Depositor hereby represents and warrants to the Seller as of the date hereof
      and
      as of the Closing Date:

     

    (a)  Organization
      and Good Standing.
      The
      Depositor is duly organized, validly existing in good standing under the laws
      of
      the State of Nevada, and has the power and authority to own its properties
      and
      to conduct the business in which it is currently engaged, and had at all
      relevant times, and has, the power, authority and legal right to acquire and
      own
      the Receivables.

     

    (b)  Due
      Qualification.
      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 property or the conduct of
      its
      business requires such qualifications.

     

    (c)  Power
      and Authority.
      The
      Depositor 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 Depositor by all necessary corporate
      action.

     

    (d)  No
      Violation.
      The
      consummation by the Depositor of the transactions contemplated by this Agreement
      and the fulfillment by the Depositor 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 by-laws of the Depositor, or 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
      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, federal or state regulatory body, administrative agency or other
      governmental instrumentality having jurisdiction over the Depositor or its
      properties.

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    (e)  No
      Proceedings.
      There
      are no proceedings or investigations pending or, to the Depositor's best
      knowledge, threatened, before any court, federal or state regulatory body,
      administrative agency or other governmental instrumentality having jurisdiction
      over the Depositor or its properties which (i) assert the invalidity of
      this Agreement, (ii) seek to prevent the consummation of any of the
      transactions contemplated by this Agreement or (iii) seek 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.

     

    SECTION
      3.02.  Representations
      and Warranties of Seller.
      

     

    (a)   The
      Seller hereby represents and warrants to the Depositor of the date hereof and
      as
      of the Closing Date:

     

    (i)  Organization
      and Good Standing.
      The
      Seller is duly organized, validly existing in good standing under the laws
      of
      the State of Delaware, and has the power and authority to own its properties
      and
      to conduct the business in which it is currently engaged, and had at all
      relevant times, and has, the power, authority and legal right to acquire and
      own
      the Receivables.

     

    (ii)  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 requires such qualifications.

     

    (iii)  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 sold and assigned to the Depositor hereby and has duly authorized
      such sale and assignment to the Depositor by all necessary corporate action;
      and
      the execution, delivery and performance of this Agreement has been duly
      authorized by the Seller by all necessary corporate action.

     

    (iv)  No
      Violation.
      The
      consummation by the Seller of the transactions contemplated by this Agreement
      and the fulfillment by the Seller of the terms hereof neither 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 certificate of
      incorporation or by-laws of the Seller, or any indenture, agreement or other
      instrument to which the Seller is a party or by which it is bound; nor result
      in
      the creation or imposition of any Lien upon any of its properties pursuant
      to
      the terms of any such indenture, agreement or other instrument (other than
      the
      Basic Documents); nor violate any law or, to the best of the Seller's knowledge,
      any order, rule or regulation applicable to the Seller of any court, federal
      or
      state regulatory body, administrative agency or other governmental
      instrumentality having jurisdiction over the Seller or its
      properties.

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    (v)  No
      Proceedings.
      There
      are no proceedings or investigations pending, or, to the best of Seller's
      knowledge, threatened, before any court, federal or state regulatory body,
      administrative agency or other governmental instrumentality having jurisdiction
      over the Seller or its properties which (i) assert the invalidity of this
      Agreement, (ii) seek to prevent the consummation of any of the transactions
      contemplated by this Agreement or (iii) seek any determination or ruling
      that might materially and adversely affect the performance by the Seller of
      its
      obligations under, or the validity or enforceability of, this
      Agreement.

     

    (vi)  No
      Consents Required.
      All
      approvals, authorizations, consents, orders or other actions of any Person
      or of
      any Governmental Authority required in connection with the execution and
      delivery by the Seller of this Agreement or any other Basic Document, the
      performance by the Seller of the transactions contemplated by this Agreement
      or
      any other Basic Document and the fulfillment by the Seller of the terms hereof
      or thereof, have been obtained or have been completed and are in full force
      and
      effect (other than approvals, authorizations, consents, orders or other actions
      which if not obtained or completed or in full force and effect would not have
      a
      material adverse effect on the Seller or upon the collectability of any
      Receivable or upon the ability of the Seller to perform its obligations under
      this Agreement).

     

    (b)  The
      Seller makes the following representations and warranties as to the Receivables
      on which the Depositor relied in accepting the Receivables. The parties hereto
      acknowledge that the representations and warranties below require the Seller
      to
      monitor conditions that it may not have the ability to monitor. Accordingly,
      wherever the Seller makes, or is deemed to make, a representation that it cannot
      monitor, such representation shall be made as if prefaced with the phrase "to
      the best of the Seller's knowledge"; provided,
      however,
      that
      the determination as to whether a Repurchase Event has occurred pursuant to
      Section 6.02
      shall be
      made without reliance on whether the Seller actually had knowledge of the
      accuracy of any of its representations. Such representations and warranties
      speak as of the execution and delivery of this Agreement but shall survive
      the
      sale, transfer and assignment of the Receivables to the Depositor and the
      subsequent assignments and transfers of the Receivables pursuant to the Sale
      and
      Servicing Agreement and the Indenture:

     

    (i)  Characteristics
      of Receivables.
      Each
      Receivable (A) was originated in the United States of America by the Seller
      in
      the ordinary course of business or was originated by a Dealer in the ordinary
      course of business, in each case in connection with the retail sale by a Dealer
      of Financed Equipment in the ordinary course of such Dealer's business, was
      fully and properly executed by the parties thereto, and if originated by such
      Dealer, was purchased by the Seller from such Dealer and was validly assigned
      by
      such Dealer to the Seller in accordance with its terms, (B) has created a valid,
      subsisting and enforceable (subject to paragraph (iv) below) first priority
      security interest in favor of the Seller in the Financed Equipment, and if
      applicable, a valid, subsisting and enforceable (subject to paragraph (iv)
      below) security interest in favor of the Seller in the Cross-Collateralized
      Equipment, which security interests are assignable by the Seller to the
      Depositor, by the Depositor to the Issuing Entity and by the Issuing Entity
      to
      the Indenture Trustee, (C) contains customary and enforceable (subject to
      paragraph (iv) below) provisions such that the rights and remedies of the holder
      thereof are adequate for realization against the collateral of the benefits
      of
      the security and (D) provides for fixed payments (except as described below)
      on
      a periodic basis, yields interest at a fixed-rate (in the case of Receivables
      related to an Installment Sales Contract) and is prepayable without premium
      or
      penalty at any time. The fixed payments provided for are sufficient to amortize
      the Amount Financed of such Receivable by maturity and yield interest at the
      APR.

     

    
      
         

      

      
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    (ii)  Schedule
      of Receivables.
      The
      information set forth in the Schedule of Receivables to this Agreement is true
      and correct in all material respects as of the opening of business on the
      Cut-off Date and no selection procedures believed to be adverse to the
      Noteholders or the Certificateholder as assignees of the Depositor were utilized
      in selecting the Receivables. The computer tape regarding the Receivables made
      available to the Depositor and its assigns is true and correct in all
      respects.

     

    (iii)  Compliance
      with Law.
      Each
      Receivable and the sale or lease of the Financed Equipment complied at the
      time
      it was originated or made, and at the execution of this Agreement complies
      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
      Reporting Act, the Fair Debt Collection Practices Act, the Federal Trade
      Commission Act, the Magnuson-Moss Warranty Act, the Federal Reserve Board's
      Regulations B and S and other equal credit opportunity and disclosure
      laws.

     

    (iv)  Binding
      Obligations.
      Each
      Receivable represents the genuine, legal, valid and binding payment obligation
      in writing of the Obligor, enforceable by the holder thereof (which as of the
      Closing Date is the Seller) in accordance with its terms, subject to bankruptcy,
      insolvency and other laws relating to the enforcement of creditors' rights
      generally and to general principles of equity (regardless of whether
      enforceability is considered in a proceeding in equity or at law). Such
      enforceability has not been and is not adversely affected by whether or not
      the
      Seller was or is qualified to do business in the state in which the Obligor
      was
      or is located.

     

    (v)  Security
      Interest in Financed Equipment.
      Immediately prior to the sale, assignment and transfer thereof, each Receivable
      shall be secured by a validly perfected first priority security interest in
      the
      Financed Equipment in favor of the Seller as secured party. As of the Cut-off
      Date, such Financed Equipment is located in the United States of
      America.

     

    (vi)  Receivables
      in Force.
      No
      Receivable has been satisfied, subordinated or rescinded and no Financed
      Equipment been released from the lien granted by the related Receivable in
      whole
      or in part. No Receivable is rescindable on the basis of whether or not the
      Seller was or is qualified to do business in the state in which the Obligor
      was
      or is located.

     

    
      
         

      

      
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    (vii)  Prospectus
      Information.
      As of
      the Cut-off Date, each Receivable conforms and all Receivables in the aggregate
      conform, in all material respects, to the description set forth in the
      Prospectus, including all statistical data or otherwise.

     

    (viii)  No
      Amendments.
      No
      Receivable has been amended such that the amount of the Obligor's Scheduled
      Payments has been increased or decreased, except for increases or decreases
      resulting from the inclusion of any premium for forced-placed physical damage
      insurance covering the Financed Equipment.

     

    (ix)  No
      Defenses.
      No
      right of rescission, setoff, counterclaim or defense has been asserted or
      threatened with respect to any Receivable.

     

    (x)  No
      Liens.
      No
      liens or claims have been filed for work, labor or materials relating to any
      Financed Equipment that are liens prior to, or equal or coordinate with, the
      security interest in the Financed Equipment granted by the
      Receivable.

     

    (xi)  No
      Default.
      No
      Receivable has a payment that is more than 31 days overdue as of the
      Cut-off Date and, except as permitted in this paragraph, no default, breach,
      violation or event permitting acceleration under the terms of any Receivable
      has
      occurred and is continuing; and (except for payment defaults continuing for
      a
      period of not more than 31 days) 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 any Receivable has arisen; and the Seller has
      not waived and shall not waive any of the foregoing.

     

    (xii)  Insurance.
      Each
      Obligor is required to obtain and maintain physical damage insurance and/or
      liability insurance, as applicable, covering the Financed Equipment in
      accordance with the Seller's normal requirements.

     

    (xiii)  Title.
      It is
      the intention of the Seller that the transfer and assignment herein contemplated
      constitute a sale of the Receivables from the Seller to the Depositor, 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. No Receivable has been sold,
      transferred, assigned or pledged by the Seller to any Person other than the
      Depositor. Immediately prior to the transfer and assignment herein contemplated,
      the Seller has good and marketable title to each Receivable, free and clear
      of
      all Liens, encumbrances, security interests and rights of others and,
      immediately upon the transfer thereof, the Depositor shall have good and
      marketable title to each Receivable, free and clear of all Liens, tax,
      governmental or similar liens, encumbrances, security interests and rights
      of
      others; and the transfer of the Receivables to the Depositor has been or will
      be
      within 10 days after the Closing Date perfected under the UCC.

     

    
      
         

      

      
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    (xiv)  Lawful
      Assignment.
      No
      Receivable has been originated in, or is subject to the laws of, any
      jurisdiction under which the sale, transfer and assignment of such Receivable
      or
      any Receivable under this Agreement, the Sale and Servicing Agreement or the
      Indenture is unlawful, void or voidable.

     

    (xv)  All
      Actions Taken.
      All
      actions necessary to give the Depositor a first priority perfected ownership
      interest in the Receivables pursuant to the UCC have been taken or will be
      taken
      within 10 days after the Closing Date.

     

    (xvi)  Leases.
      Each
      Lease, relating to any Receivable (A) creates a security interest rather
      than a lease for purposes of Section 1-201 of the UCC, (B) is not a
      "consumer lease" within the meaning of Article 2A of the UCC in any jurisdiction
      where said Article 2A has been adopted and governs the construction
      thereof, (C) to the best knowledge of Seller, the related Obligor has
      accepted the related Financed Equipment leased to it and has not notified Seller
      of any defects therein, (D) is by its terms an absolute and unconditional
      obligation of the related Obligor and non-cancelable, (E) requires the
      related Obligor to maintain the related Financed Equipment for its own account
      except for any rental, (F) the rights with respect to such Lease are
      assignable by the Seller thereunder without the consent of any Person,
      (G) is net to the Seller of any maintenance, taxes, insurance or other
      expenses, (H) contains provisions requiring the related Obligor to assume
      all risk of loss or malfunction of the related Financed Equipment and (I) may
      not be prepaid by its terms, although the Obligor may discharge its obligations
      by prepaying the aggregate remaining lease scheduled payments.

     

    (xvii)  Maturity
      of Receivables.
      Each
      Receivable has a final scheduled payment date due not later than the payment
      date occurring in May 2011 as of the Cut-off Date and the weighted average
      remaining term of the Receivables is 42 months as of the Cut-off
      Date.

     

    (xviii)  Location
      of Receivable Files.
      The
      Receivable Files are kept at the location listed in Schedule B to the Sale
      and
      Servicing Agreement.

     

    (xix)  Outstanding
      Contract Balance.
      Each
      Receivable has an outstanding Contract Balance of at least $5,007 as of the
      Cut-off Date.

     

    (xx)  No
      Bankruptcies.
      No
      Obligor on any Receivable as of the Cut-off Date was noted in the related
      Receivable File as having filed for bankruptcy or as being subject to a
      bankruptcy proceeding and to the Seller's knowledge no such proceeding is
      pending or threatened against any Obligor.

     

    (xxi)  No
      Repossessions.
      No
      Financed Equipment securing any Receivable is in repossession
      status.

     

    
      
         

      

      
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    (xxii)  Chattel
      Paper.
      Each
      Receivable constitutes "tangible chattel paper" within the meaning of the UCC
      of
      the States of New York and Nevada;

     

    (xxiii)  Obligors.
      None of
      the Receivables is due from any Person which does not have a mailing address
      in
      the United States of America. No Receivable is due from the United States of
      America or any State or from any agency, department, instrumentality or
      political subdivision thereof.

     

    (xxiv)  One
      Original.
      There
      is only one Original Contract related to each Receivable. With respect to each
      Receivable, the Seller has a perfected, first priority ownership or security
      interest in such Receivable, free and clear of all Liens, encumbrances, security
      interests or rights of others.

     

    (xxv)  Payment
      Frequency.
      As of
      the Cut-off Date and as shown on the books of the Seller, Receivables having
      an
      aggregate Contract Balance equal to approximately 87.8% of the aggregate
      Contract Balance of all Receivables had monthly scheduled payments; and as
      of
      the Cut-off Date and as shown on the books of the Seller, Receivables having
      an
      aggregate Contract Balance equal to approximately 12.2% of the aggregate
      Contract Balance of all Receivables had scheduled payments which have monthly
      scheduled payments other than certain months specified therein for which payment
      is skipped.

     

    (xxvi)  Interest
      Accrual.
      Each
      Receivable related to an Installment Sales Contract is, as of the Closing Date,
      accruing interest.

     

    (xxvii)  Notification
      of Obligors.
      With
      respect to each Dealer Receivable, the related Obligor has been notified with
      respect to the assignment of the related Contract to the Seller.

     

     

    ARTICLE
      IV

     

    CONDITIONS

     

    SECTION
      4.01.  Conditions
      to the Obligation of the Depositor.
      The
      obligation of the Depositor to purchase the Receivables is subject to the
      satisfaction of the following conditions:

     

    (a)  Representations
      and Warranties True.
      The
      representations and warranties of the Seller hereunder shall be true and correct
      on the Closing Date with the same effect as if then made and the Seller shall
      have performed all obligations to be performed by it hereunder on or prior
      to
      the Closing Date.

     

    (b)  Computer
      Files Marked.
      The
      Seller shall, at its own expense on or prior to the Closing Date (i) indicate
      in
      its computer files that the Receivables have been sold to the Depositor pursuant
      to this Agreement and sold by the Depositor to the Issuing Entity pursuant
      to
      the Sale and Servicing Agreement and (ii) deliver to the Depositor the
      Schedule of Receivables certified by the Chairman, the President, a Vice
      President, Secretary, the Treasurer or an Assistant Treasurer of the Seller
      to
      be true, correct and complete.

     

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

    (c)  Documents
      to be Delivered by Seller at Closing.

     

    (i)  Assignment.
      On the
      Closing Date, the Seller will execute and deliver the Assignment. The Assignment
      shall be substantially in the form of Exhibit A.

     

    (ii)  Other
      Documents.
      On the
      Closing Date, the Seller will execute and deliver such other documents as the
      Depositor may reasonably request.

     

    (d)  Other
      Transactions.
      The
      transactions contemplated by the Basic Documents to be consummated on the
      Closing Date shall be consummated on such date.

     

    SECTION
      4.02.  Conditions
      to Obligation of Seller.
      The
      obligation of the Seller to sell the Receivables to the Depositor is subject
      to
      the satisfaction of the following conditions:

     

    (a)  Representations
      and Warranties True.
      The
      representations and warranties of the Depositor hereunder shall be true and
      correct on the Closing Date with the same effect as if then made and the
      Depositor shall have performed all obligations to be performed by it hereunder
      on or prior to the Closing Date.

     

    (b)  Receivables
      Purchase Price.
      On the
      Closing Date, the Depositor shall have delivered to the Seller the purchase
      price specified in Section 2.01.

     

    SECTION
      4.03.  Junior
      Liens on Financed Equipment and Other Equipment.
      

     

    (a)   To
      the
      extent that any item of Financed Equipment is subject to a security interest
      in
      favor of the Seller (each, an "Other Security Interest") to secure an obligation
      of the related Obligor that is not part of a Receivable that has been
      transferred to the Depositor pursuant to Section 2.01 (each, an "Other
      Obligation"), then the Seller agrees that, notwithstanding any other provision
      of any document, instrument or agreement to the contrary, and until (i) the
      related Receivable has been paid in full or (ii) the security interest in such
      item of Financed Equipment that secures the Receivable (the "Receivable Security
      Interest") has been discharged or released, (A) the Receivable Security Interest
      in the Financed Equipment shall be prior and senior to the Other Security
      Interest in the Financed Equipment, and the Other Security Interest in the
      Financed Equipment shall be subordinate and junior to the Receivable Security
      Interest in the Financed Equipment, (B) the Seller shall not transfer the Other
      Obligation to an Affiliate of the Seller or a trust (other than the Issuing
      Entity) established by the Depositor or any of its Affiliates unless the
      documentation for such transaction provides that the Receivable Security
      Interest in the Financed Equipment shall be prior and senior to the Other
      Security Interest in the Financed Equipment, and the Other Security Interest
      in
      the Financed Equipment shall be subordinate and junior to the Receivable
      Security Interest in the Financed Equipment, and (C) the Seller shall not
      transfer the Other Obligation (other than as described in clause (B) of this
      paragraph) unless the transferee agrees in writing that the Receivable Security
      Interest in the Financed Equipment shall be prior and senior to the Other
      Security Interest in the Financed Equipment, and the Other Security Interest
      in
      the Financed Equipment shall be subordinate and junior to the Receivable
      Security Interest in the Financed Equipment.

     

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

    (b)  To
      the
      extent that any Receivable is secured by a security interest in any equipment
      other than the Financed Equipment (the "Other Equipment") and such Other
      Equipment is subject to a security interest (each, an "Affiliate Trust Security
      Interest") in favor of the Seller that has been or will in the future be
      assigned by the Seller to a trust (other than the Issuing Entity) established
      by
      the Depositor or any of its Affiliates, then the Seller and the Depositor agree
      that the Affiliate Trust Security Interest in the Other Equipment shall be
      prior
      and senior to the security interest in the Other Equipment that secures the
      Receivable, and the security interest in the Other Equipment that secures the
      Receivable shall be subordinate and junior to the Affiliate Trust Security
      Interest in the Other Equipment.

     

     

     

    ARTICLE
      V

     

    COVENANTS
      OF THE SELLER AND THE DEPOSITOR

     

    The
      Seller and the Depositor agree with each other as follows; provided,
      however,
      that to
      the extent that any provision of this Article conflicts with any provision
      of
      the Sale and Servicing Agreement, the Sale and Servicing Agreement shall
      govern:

     

    SECTION
      5.01.  Protection
      of Right, Title and Interest.
      

     

    (a)   Further
      Assurances.
      The
      Seller shall take all actions to preserve and protect the right, title and
      interest of the Depositor in and to the Receivables and the other property
      transferred to the Depositor pursuant to Section 2.01. The Depositor shall
      cooperate fully with the Seller in connection with the obligations set forth
      above and will execute any and all documents reasonably required to fulfill
      the
      purpose of this paragraph.

     

    (b)  Name
      Change.
      Within
      15 days after the Seller makes any change in its name or type or jurisdiction
      of
      organization, the Seller shall give the Depositor notice of any such
      change.

     

    (c)  UCC
      Financing Statements.
      The
      Seller shall file and maintain all appropriate financing statements (in the
      proper filing office, in the appropriate jurisdiction), necessary to perfect,
      and maintain the perfection of, the ownership interest or security interest
      of
      the Depositor in the Receivables.

     

    SECTION
      5.02.  Other
      Liens or Interests.
      Except
      for the conveyances hereunder and pursuant to the Sale and Servicing Agreement
      and the other Basic Documents, the Seller shall not sell, pledge, assign or
      transfer to any Person, or grant, create, incur, assume or suffer to exist
      any
      Lien arising through or under it or any Dealer on, any interest in, to and
      under
      the Receivables, and the Seller shall defend the right, title and interest
      of
      the Depositor in, to and under the Receivables against all claims of third
      parties claiming through or under the Seller or any Dealer; provided,
      however,
      that
      the Seller's obligations under this Section shall terminate one year and one
      day
      after the termination of the Issuing Entity pursuant to the Trust
      Agreement.

     

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

    SECTION
      5.03.  Chief
      Executive Office.
      During
      the term of the Receivables, the Seller will maintain its chief executive office
      in one of the States of the United States of America or the District of
      Columbia.

     

    SECTION
      5.04.  Corporate
      Existence.
      

     

    (a)   During
      the term of this Agreement, the Depositor will keep in full force and effect
      its
      existence, rights and franchises as a corporation under the laws of Nevada
      and
      will obtain and preserve its qualification to do business in each jurisdiction
      in which such qualification is or shall be necessary to protect the validity
      and
      enforceability of this Agreement, the Basic Documents and each other instrument
      or agreement necessary or appropriate to the proper administration of this
      Agreement and the Sale and Servicing Agreement and the transactions contemplated
      hereby.

     

    (b)  The
      Seller will not take any action or fail to take any action if such act or
      omission would cause the Depositor not to observe the covenants set forth in
      Section 5.04(c)
      or to
      violate the provisions of the Depositor's articles of
      incorporation.

     

    (c)  The
      Depositor and the Seller agree that each of their respective businesses shall
      be
      conducted as follows, and neither Depositor nor the Seller shall take any action
      or fail to take any action if such act or omission would cause its respective
      business not to be conducted as follows:

     

    (i)  The
      Depositor will maintain both an office at which its business is and will be
      conducted and a telephone number separate from the Seller or any of the Seller's
      Affiliates.

     

    (ii)  At
      least
      two of the Depositor's directors are not and will not be directors, officers
      or
      employees of the Seller or any of the Seller's Affiliates. No employee of the
      Depositor shall engage in any servicing functions with respect to the
      Receivables and, with respect to the Depositor, shall only engage in corporate
      governance and clerical functions. So long as the Depositor maintains an
      employee at its office, the Depositor shall at all times maintain comprehensive
      liability and workmen's compensation insurance (as is customary for commercial
      enterprises) in an amount, when taking into account any available umbrella
      policy, at least equal to $5,000,000.

     

    (iii)  The
      Depositor will maintain corporate records and books and accounts separate from
      those of the Seller or any of the Seller's Affiliates.

     

    (iv)  Except
      as
      expressly permitted by the Sale and Servicing Agreement with respect to
      collections on the Receivables prior to the transfer of such collections to
      the
      Collection Account, the Depositor's funds will not be commingled with those
      of
      the Seller or any of the Seller's Affiliates, and the Depositor shall maintain
      bank accounts separate from those of the Seller or any of the Seller's
      Affiliates.

     

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

    (v)  As
      long
      as it is the Servicer, the Seller shall maintain records permitting a
      determination on a daily basis of the amount and location of any of its funds
      which are commingled as permitted under clause
      (iv)
      above.

     

    (vi)  The
      Board
      of Directors of the Depositor will take appropriate corporate action (including
      holding meetings or acting by unanimous consent) to authorize all of the
      Depositor's corporate actions, and minutes shall be maintained by the Depositor
      separate and apart from those of the Seller or any of the Seller's
      Affiliates.

     

    (vii)  The
      Depositor shall at all times be adequately capitalized to engage in the
      transactions contemplated at its formation. Without limiting the foregoing,
      the
      Depositor shall at all times maintain capital sufficient to pay its rent, salary
      of any employee, and any required insurance from the Closing Date until the
      termination of the Issuing Entity in accordance with the terms and conditions
      of
      the Trust Agreement.

     

    (viii)  The
      Depositor shall not incur or guarantee any debt other than under the Sale and
      Servicing Agreement, nor shall the Depositor make any loans, pledge its assets
      for the benefit of any other entity or hold out its credit as being available
      to
      satisfy the obligations of others, other than as permitted by the Depositor's
      articles of incorporation.

     

    (ix)  The
      Depositor shall not engage in any transaction with the Seller or any of the
      Seller's Affiliates on terms more favorable than in a similar transaction
      involving a third party.

     

    (x)  The
      Depositor shall at all times use its own stationery.

     

    (xi)  The
      Depositor shall always be described as a separate corporation, and never as
      a
      department, division or otherwise of the Seller or any of the Seller's
      Affiliates.

     

    (xii)  The
      Depositor shall act solely in its own corporate name and through its own
      authorized officers and agents. Neither the Depositor nor any of Depositor's
      Affiliates shall be appointed agent of the Seller, except as expressly provided
      for by the Sale and Servicing Agreement and the Administration
      Agreement.

     

    (xiii)  The
      data
      and records (including computer records) used by the Depositor or the Seller
      in
      the collection and administration of the Receivables shall reflect the
      Depositor's ownership interest therein.

     

    (xiv)  Other
      than organizational expenses, the Depositor shall be responsible for the payment
      of all expenses including the salaries of its employees, indebtedness and other
      obligations incurred by it, including a fair and reasonable allocation for
      shared office space.

     

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

    (xv)  The
      Depositor shall at all times hold itself out to the public under the Depositor's
      own name as a legal entity separate and distinct from the Seller and any of
      the
      Seller's Affiliates and shall correct any known misunderstanding regarding
      its
      separate identity.

     

    (xvi)  None
      of
      the Depositor's funds nor any of the funds held by the Seller on behalf of
      the
      Depositor or the holders of the Certificate or the Notes shall be invested
      in
      securities issued by the Seller or any of the Seller's Affiliates.

     

    (xvii)  The
      Depositor shall at all times maintain a sufficient number of employees in light
      of its contemplated business operations.

     

    (xviii)  At
      any
      time the Notes are outstanding, the Seller shall not (A) dissolve or
      liquidate, (B) merge or consolidate with any other entity, (C) sell its assets
      substantially in their entirety to any other entity or (D) amend its articles
      of
      incorporation, in each case unless the Rating Agency Condition is
      satisfied.

     

    (d)  The
      Depositor and the Seller will each furnish to the other on or before April
      30 of
      each year (commencing April 30, 2007) for so long as any Certificate or Note
      remains outstanding an Officer's Certificate to the effect that all of its
      respective obligations under this Section 5.04 have been fulfilled
      throughout the preceding calendar year (or the period from the Closing Date
      until December 31, 2006, as applicable), or, if there has been any default
      in
      the fulfillment of any such obligations, specifying each such default known
      to
      the signer thereof and the nature and status thereof.

     

    (e)  The
      Seller will not transfer or assign any interest in the Depositor except pursuant
      to an instrument under which the transferee or assignee of such interest
      expressly assumes the performance of all covenants of the Seller to be performed
      or observed under this Section 5.04.

     

    (f)  The
      annual consolidated audited financial statements of the Depositor and the Seller
      will reflect the results of the issuance of the Notes and Certificates in
      accordance with generally accepted accounting principles and also disclose
      that
      the assets of the Depositor are not available to pay creditors of the Seller
      or
      any other Affiliate of the Seller.

     

    SECTION
      5.05.  Indemnification.
      The
      Seller shall indemnify the Depositor for any liability as a result of the
      failure of a Receivable to be originated in compliance with all requirements
      of
      law and for any breach of any of its representations and warranties contained
      herein, other than the representations and warranties made pursuant to
Section 3.02(b)
      for
      which the sole remedy shall be provided by Section 6.02;
      provided,
      however,
      that
      the Seller shall indemnify the Depositor for any liability arising from a breach
      of Section 3.02(b)(ii),
      (iii)
      and
(xxv).
      These
      indemnity obligations shall be in addition to any other obligation that the
      Seller may otherwise have.

     

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

    SECTION
      5.06.  Regulation
      AB Compliance.
      The
      Seller shall provide to the Depositor such information and disclosure regarding
      the Seller and the Receivables as is required to enable the Depositor to comply
      with all of its obligations under Regulation AB under the Securities Act of
      1933
      and the Securities Exchange Act of 1934. 

     

     

     

    

    ARTICLE
      VI

     

    MISCELLANEOUS
      PROVISIONS

     

    SECTION
      6.01.  Obligations
      of Seller.
      The
      obligations of the Seller under this Agreement shall not be affected by reason
      of any invalidity, illegality or irregularity of any Receivable.

     

    SECTION
      6.02.  Repurchase
      Events.
      

     

    (a)   The
      Seller hereby covenants and agrees with the Depositor for the benefit of the
      Depositor, the Indenture Trustee, the Noteholders, the Owner Trustee and the
      Certificateholder that the occurrence of a breach of any of the Seller's
      representations and warranties contained in Section 3.02(b)
      (other
      than the representation and warranty contained in Section 3.02(b)(xxv))
      in
      respect of a Receivable shall constitute an event obligating the Seller to
      repurchase such Receivable (each, a "Repurchase Event"), at the Purchase Amount
      from the Depositor or from the Issuing Entity.

     

    (b)  These
      repurchase obligations of the Seller shall constitute the sole remedies to
      the
      Depositor, the Indenture Trustee, the Noteholders, the Owner Trustee and the
      Certificateholder against the Seller with respect to any Repurchase
      Event.

     

    (c)  The
      terms
      and conditions of the Depositor's rights and obligations to enforce its right
      of
      repurchase pursuant to this Section 6.02 shall be governed by
      Section 3.02 of the Sale and Servicing Agreement.

     

    SECTION
      6.03.  Depositor
      Assignment of Repurchased Receivables.
      With
      respect to all Receivables repurchased by the Seller pursuant to this Agreement,
      the Depositor shall assign, without recourse, representation or warranty, to
      the
      Seller all the Depositor's right, title and interest in and to such Receivables,
      and all security and documents relating thereto.

     

    SECTION
      6.04.  Issuing
      Entity.
      The
      Seller acknowledges and agrees that (a) the Depositor will, pursuant to the
      Sale
      and Servicing Agreement, sell the Receivables to the Issuing Entity and assign
      its rights under this Agreement to the Issuing Entity, (b) the Issuing Entity
      will, pursuant to the Indenture, assign such Receivables and such rights to
      the
      Indenture Trustee and (c) the representations and warranties contained in this
      Agreement and the rights of the Depositor under this Agreement, including
Section 6.02,
      are
      intended to benefit the Issuing Entity, the Certificateholder and the
      Noteholders (and may be enforced directly by the Indenture Trustee on behalf
      of
      the Noteholders and by the Owner Trustee on behalf of the Issuing Entity or
      the
      Certificateholder). The Seller hereby consents to all such sales and
      assignments.

     

    SECTION
      6.05.  Amendment.
      This
      Agreement may be amended from time to time, with prior written notice to the
      Rating Agencies, by a written amendment duly executed and delivered by the
      Seller and the Depositor, without the consent of the Noteholders or the
      Certificateholder, 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 Certificateholder;
      provided that such amendment will not, as expressed in an Opinion of Counsel,
      materially and adversely affect the interest of any Noteholder or the
      Certificateholder or the federal tax characterization of the Notes. This
      Agreement may also be amended by the Seller and the Depositor, with prior
      written notice to the Rating Agencies, with the consent of the Noteholders
      evidencing a majority in the Outstanding Principal Amount of the Notes and
      the
      Certificateholder 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 Noteholders or the Certificateholder; provided,
      however,
      that no
      such amendment may (i) increase or reduce in any manner the amount of, or
      accelerate or delay the timing of, any payment by Seller hereunder or
      collections of payments on Receivables or distributions that are required to
      be
      made for the benefit of Noteholders or the Certificateholder or (ii) reduce
      the
      aforesaid percentage of the Notes and the Certificate which are required to
      consent to any such amendment, without the consent of the holders of all the
      outstanding Notes and the holder of the Certificate.

     

    
      
         

      

      
        -18-

        
          

        

      

      
         

      

    

    SECTION
      6.06.  Waivers.
      No
      failure or delay on the part of the Depositor in exercising any power, right
      or
      remedy under this Agreement or the Assignment shall operate as a waiver thereof,
      nor shall any single or partial exercise of any such power, right or remedy
      preclude any other or further exercise thereof or the exercise of any other
      power, right or remedy.

     

    SECTION
      6.07.  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 (a) in the case of the
      Seller, to Caterpillar Financial Services Corporation, 2120 West End Avenue,
      Nashville, TN 37203-0001, (615) 341-1000; (b) in the case of the Depositor,
      to
      Caterpillar Financial Funding Corporation, 4040 S. Eastern Avenue, Suite 344,
      Las Vegas, Nevada 89119 (702) 735-2514; (c) in the case of Moody's, to
      Moody's Investors Service, Inc., ABS Monitoring Department, 99 Church Street,
      New York, New York 10007; and (d) in the case of Standard & Poor's, to
      Standard & Poor's Ratings Services, 55 Water Street, 40th Floor, New York,
      New York 10004, Attention of Asset Backed Surveillance Department; or as to
      each
      of the foregoing, at such other address as shall be designated by written notice
      to the other parties.

     

    SECTION
      6.08.  Costs
      and Expenses.
      The
      Seller will pay all expenses incident to the performance of its obligations
      under this Agreement, and the Seller agrees to pay all reasonable out-of-pocket
      costs and expenses of the Depositor, excluding fees and expenses of counsel,
      in
      connection with the perfection as against third parties of the Depositor's
      right, title and interest in and to the Receivables and the enforcement of
      any
      obligation of the Seller hereunder.

     

    SECTION
      6.09.  Representations
      of Seller and Depositor.
      The
      respective agreements, representations, warranties and other statements by
      the
      Seller and the Depositor set forth in or made pursuant to this Agreement shall
      remain in full force and effect and will survive the closing under
      Section 2.02.

     

    
      
         

      

      
        -19-

        
          

        

      

      
         

      

    

    SECTION
      6.10.  Confidential
      Information.
      The
      Depositor agrees that it will neither use nor disclose to any Person the names
      and addresses of the Obligors, except in connection with the enforcement of
      the
      Depositor's rights hereunder, under the Receivables, under the Sale and
      Servicing Agreement or any other Basic Document or as required by any of the
      foregoing or by law.

     

    SECTION
      6.11.  Headings
      . The
      various headings in this Agreement are included for convenience only and shall
      not affect the meaning or interpretation of any provision of this Agreement.
      

     

    SECTION
      6.12.  Governing
      Law.
      THIS
      AGREEMENT AND THE ASSIGNMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
      WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO ITS CONFLICT OF
      LAW
      PROVISIONS (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL
      OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS, REMEDIES OF THE PARTIES HEREUNDER
      SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     

    SECTION
      6.13.  Counterparts.
      This
      Agreement may be executed in two or more counterparts and by different parties
      on separate counterparts, each of which shall be an original, but all of which
      together shall constitute one and the same instrument.

     

    [Signature
      Page Follows]

    

     

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

        
          

        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
      by
      their respective officers duly authorized as of the date first above
      written.

     

    CATERPILLAR
      FINANCIAL FUNDING CORPORATION, as Depositor

    

    

    

    By: /s/
      James A. Duensing 

    Name: James
      A.
      Duensing

    Title: Treasurer

     

    CATERPILLAR
      FINANCIAL SERVICES

    CORPORATION,
      as Seller

    

    

    

    By: /s/
      James A. Duensing 

    Name: James
      A.
      Duensing

                                                                                                           
      Title: Treasurer

     

    

    
      
        
          Purchase
            Agreement

           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    SCHEDULE
      A

     

    

     

    SCHEDULE
      OF RECEIVABLES

     

    

     

    

     

    

     

    

    
      
        
          Schedule
            A-1

           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      A

     

    ASSIGNMENT
      OF RECEIVABLES

     

    June
      28,
      2006

     

    For
      value
      received, in accordance with the Purchase Agreement, dated as of June 1, 2006
      (the "Purchase Agreement"), between the undersigned, as seller, and Caterpillar
      Financial Funding Corporation, as purchaser (the "Depositor"), the undersigned
      does hereby sell, assign, transfer and otherwise convey unto the Depositor,
      without recourse, (i) all right, title and interest of the undersigned in
      and to the Receivables, and all monies (including accrued interest) due
      thereunder on and after the Cut-off Date; (ii) the interests of the
      undersigned in the security interests in the Transaction Equipment granted
      by
      Obligors pursuant to the Receivables and any other interest of the undersigned
      in such Transaction Equipment, including any Liquidation Proceeds;
      (iii) the interest and rights of the undersigned in any proceeds with
      respect to the Receivables from claims on any physical damage, credit life,
      liability or disability insurance policies covering Financed Equipment or
      Obligors, as the case may be; (iv) the interest of the undersigned in any
      proceeds from recourse to, or other payment by, Dealers on Receivables; and
      (v) the proceeds of any and all of the foregoing.

     

    This
      Assignment is made pursuant to and upon the representations, warranties and
      agreements on the part of the undersigned contained in the Purchase Agreement
      and is to be governed by the Purchase Agreement.

     

    Capitalized
      terms used herein and not otherwise defined shall have the meaning assigned
      to
      them in the Purchase Agreement.

     

    IN
      WITNESS WHEREOF, the undersigned has caused this Assignment to be duly executed
      as of the date first set forth above.

     

    CATERPILLAR
      FINANCIAL SERVICES

    CORPORATION

    

    

    By: _________________________________

    Name: 

    Title: 

    

     

    
      
        
           

        

        
        

      

      
        1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]