Document:

Indenture dated December 16, 2004

  
 Exhibit 4.2 

 
 Execution Copy 
  
 INDENTURE 
  
 between 
  
 E*TRADE RV AND MARINE TRUST 2004-1, 
 as Issuer

  
 and 
  
 JPMORGAN CHASE BANK, N.A., 
 as Indenture Trustee 
  
 Dated as of December 16, 2004 
  

  
 TABLE OF CONTENTS

  

					
	 	  	 	  	Page

		
	 ARTICLE I. DEFINITIONS AND INCORPORATION BY REFERENCE
	  	2
			
	 SECTION 1.1
	  	 Definitions
	  	2
			
	 SECTION 1.2
	  	 Incorporation by Reference of Trust Indenture Act
	  	2
			
	 SECTION 1.3
	  	 Rules of Construction
	  	2
		
	 ARTICLE II. THE NOTES
	  	3
			
	 SECTION 2.1
	  	 Form
	  	3
			
	 SECTION 2.2
	  	 Execution, Authentication and Delivery
	  	3
			
	 SECTION 2.3
	  	 Temporary Notes
	  	4
			
	 SECTION 2.4
	  	 Registration; Registration of Transfer and Exchange
	  	4
			
	 SECTION 2.5
	  	 Mutilated, Destroyed, Lost or Stolen Notes
	  	5
			
	 SECTION 2.6
	  	 Persons Deemed Owner
	  	6
			
	 SECTION 2.7
	  	 Payment of Principal and Interest; Defaulted Interest
	  	7
			
	 SECTION 2.8
	  	 Cancellation
	  	8
			
	 SECTION 2.9
	  	 [Reserved]
	  	8
			
	 SECTION 2.10
	  	 Book-Entry Notes
	  	8
			
	 SECTION 2.11
	  	 Notices to Clearing Agency
	  	9
			
	 SECTION 2.12
	  	 Definitive Notes
	  	9
			
	 SECTION 2.13
	  	 Tax Treatment
	  	9
			
	 SECTION 2.14
	  	 Transfer of Class E Notes
	  	10
		
	 ARTICLE III. COVENANTS
	  	11
			
	 SECTION 3.1
	  	 Payment of Principal and Interest
	  	11
			
	 SECTION 3.2
	  	 Maintenance of Office or Agency
	  	11
			
	 SECTION 3.3
	  	 Money for Payments To Be Held in Trust
	  	12
			
	 SECTION 3.4
	  	 Existence
	  	13
			
	 SECTION 3.5
	  	 Protection of Trust Estate
	  	13
			
	 SECTION 3.6
	  	 Opinions as to Trust Estate
	  	14
			
	 SECTION 3.7
	  	 Performance of Obligations; Servicing of Receivables
	  	14
			
	 SECTION 3.8
	  	 Negative Covenants
	  	16
			
	 SECTION 3.9
	  	 Annual Statement as to Compliance
	  	17
			
	 SECTION 3.10
	  	 Issuer May Consolidate, etc., Only on Certain Terms
	  	17
			
	 SECTION 3.11
	  	 Successor or Transferee
	  	19
			
	 SECTION 3.12
	  	 No Other Business
	  	19

  

					
	 	 	-i-	 	E*Trade 2004-1 Indenture

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

			
	 SECTION 3.13
	  	 No Borrowing
	  	19
			
	 SECTION 3.14
	  	 Servicer’s Obligations
	  	19
			
	 SECTION 3.15
	  	 Guarantees, Loans, Advances and Other Liabilities
	  	19
			
	 SECTION 3.16
	  	 Capital Expenditures
	  	19
			
	 SECTION 3.17
	  	 [Reserved]
	  	19
			
	 SECTION 3.18
	  	 Restricted Payments
	  	19
			
	 SECTION 3.19
	  	 Notice of Events of Default
	  	20
			
	 SECTION 3.20
	  	 Further Instruments and Acts
	  	20
			
	 SECTION 3.21
	  	 Perfection Representations, Warranties and Covenants
	  	20
		
	 ARTICLE IV. SATISFACTION AND DISCHARGE
	  	20
			
	 SECTION 4.1
	  	 Satisfaction and Discharge of Indenture
	  	20
			
	 SECTION 4.2
	  	 Application of Trust Money
	  	21
			
	 SECTION 4.3
	  	 Repayment of Moneys Held by Paying Agent
	  	21
		
	 ARTICLE V. REMEDIES
	  	22
			
	 SECTION 5.1
	  	 Events of Default
	  	22
			
	 SECTION 5.2
	  	 Acceleration of Maturity; Rescission and Annulment
	  	23
			
	 SECTION 5.3
	  	 Collection of Indebtedness and Suits for Enforcement by Indenture Trustee
	  	24
			
	 SECTION 5.4
	  	 Remedies; Priorities
	  	26
			
	 SECTION 5.5
	  	 Optional Preservation of the Trust Estate
	  	27
			
	 SECTION 5.6
	  	 Limitation of Suits
	  	27
			
	 SECTION 5.7
	  	 Unconditional Rights of Noteholders To Receive Principal and Interest
	  	28
			
	 SECTION 5.8
	  	 Restoration of Rights and Remedies
	  	28
			
	 SECTION 5.9
	  	 Rights and Remedies Cumulative
	  	28
			
	 SECTION 5.10
	  	 Delay or Omission Not a Waiver
	  	28
			
	 SECTION 5.11
	  	 Control by Noteholders
	  	28
			
	 SECTION 5.12
	  	 Waiver of Past Defaults
	  	29
			
	 SECTION 5.13
	  	 Undertaking for Costs
	  	29
			
	 SECTION 5.14
	  	 Waiver of Stay or Extension Laws
	  	30
			
	 SECTION 5.15
	  	 Action on Notes
	  	28
			
	 SECTION 5.16
	  	 Performance and Enforcement of Certain Obligations
	  	30

  

					
	 	 	-ii-	 	E*Trade 2004-1 Indenture

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

		
	 ARTICLE VI. THE INDENTURE TRUSTEE
	  	31
			
	 SECTION 6.1
	  	 Duties of Indenture Trustee
	  	31
			
	 SECTION 6.2
	  	 Rights of Indenture Trustee
	  	32
			
	 SECTION 6.3
	  	 Individual Rights of Indenture Trustee
	  	33
			
	 SECTION 6.4
	  	 Indenture Trustee’s Disclaimer
	  	33
			
	 SECTION 6.5
	  	 Notice of Events
	  	33
			
	 SECTION 6.6
	  	 Reports by Indenture Trustee to Holders
	  	33
			
	 SECTION 6.7
	  	 Compensation and Indemnity
	  	34
			
	 SECTION 6.8
	  	 Replacement of Indenture Trustee
	  	34
			
	 SECTION 6.9
	  	 Successor Indenture Trustee by Merger
	  	36
			
	 SECTION 6.10
	  	 Appointment of Co-Indenture Trustee or Separate Indenture Trustee
	  	36
			
	 SECTION 6.11
	  	 Eligibility; Disqualification
	  	37
			
	 SECTION 6.12
	  	 Preferential Collection of Claims Against Issuer
	  	38
			
	 SECTION 6.13
	  	 Representations and Warranties
	  	38
		
	 ARTICLE VII. NOTEHOLDERS’ LISTS AND REPORTS
	  	39
			
	 SECTION 7.1
	  	 Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders
	  	39
			
	 SECTION 7.2
	  	 Preservation of Information; Communications to Noteholders
	  	39
			
	 SECTION 7.3
	  	 Reports by Issuer
	  	39
			
	 SECTION 7.4
	  	 Reports by Indenture Trustee
	  	40
		
	 ARTICLE VIII. ACCOUNTS, DISBURSEMENTS AND RELEASES
	  	40
			
	 SECTION 8.1
	  	 Collection of Money
	  	40
			
	 SECTION 8.2
	  	 Trust Accounts
	  	41
			
	 SECTION 8.3
	  	 General Provisions Regarding Accounts
	  	49
			
	 SECTION 8.4
	  	 Release of Trust Estate
	  	50
			
	 SECTION 8.5
	  	 Opinion of Counsel
	  	50
		
	 ARTICLE IX. SUPPLEMENTAL INDENTURES
	  	51
			
	 SECTION 9.1
	  	 Supplemental Indentures Without Consent of Noteholders
	  	51
			
	 SECTION 9.2
	  	 Supplemental Indentures with Consent of Noteholders
	  	52
			
	 SECTION 9.3
	  	 Execution of Supplemental Indentures
	  	54
			
	 SECTION 9.4
	  	 Effect of Supplemental Indenture
	  	54

  

					
	 	 	-iii-	 	E*Trade 2004-1 Indenture

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

			
	 SECTION 9.5
	  	 Conformity with Trust Indenture Act
	  	54
			
	 SECTION 9.6
	  	 Reference in Notes to Supplemental Indentures
	  	54
		
	 ARTICLE X. REDEMPTION OF NOTES
	  	54
			
	 SECTION 10.1
	  	 Redemption
	  	54
			
	 SECTION 10.2
	  	 Form of Redemption Notice
	  	55
			
	 SECTION 10.3
	  	 Notes Payable on Redemption Date
	  	55
		
	 ARTICLE XI. MISCELLANEOUS
	  	55
			
	 SECTION 11.1
	  	 Compliance Certificates and Opinions, etc.
	  	55
			
	 SECTION 11.2
	  	 Form of Documents Delivered to Indenture Trustee
	  	57
			
	 SECTION 11.3
	  	 Acts of Noteholders
	  	58
			
	 SECTION 11.4
	  	 Notices, etc., to Indenture Trustee, Issuer and Rating Agencies
	  	59
			
	 SECTION 11.5
	  	 Notices to Noteholders; Waiver
	  	59
			
	 SECTION 11.6
	  	 Alternate Payment and Notice Provisions
	  	60
			
	 SECTION 11.7
	  	 Conflict with Trust Indenture Act
	  	60
			
	 SECTION 11.8
	  	 Effect of Headings and Table of Contents
	  	60
			
	 SECTION 11.9
	  	 Successors and Assigns
	  	60
			
	 SECTION 11.10
	  	 Separability
	  	60
			
	 SECTION 11.11
	  	 Benefits of Indenture
	  	60
			
	 SECTION 11.12
	  	 Legal Holidays
	  	60
			
	 SECTION 11.13
	  	 GOVERNING LAW
	  	61
			
	 SECTION 11.14
	  	 Counterparts
	  	61
			
	 SECTION 11.15
	  	 Recording of Indenture
	  	61
			
	 SECTION 11.16
	  	 Trust Obligation
	  	61
			
	 SECTION 11.17
	  	 No Petition
	  	61
			
	 SECTION 11.18
	  	 No Prohibited Transaction
	  	62
			
	 SECTION 11.19
	  	 Inspection
	  	62
			
	 SECTION 11.20
	  	 Submission to Jurisdiction
	  	62
			
	 SECTION 11.21
	  	 Subordination of Claims
	  	63

  

					
	 	 	-iv-	 	E*Trade 2004-1 Indenture

 EXHIBIT A - Form of Note (Section 2.1) 
  
 EXHIBIT B - Form of Rule 144A Certificate 
  

					
	 	 	 	 	E*Trade 2004-1 Indenture

  
 CROSS REFERENCE
TABLE1 
  

						
	 TIA
Section

	  	 	  	Indenture
Section

	 
	 310
	  	 (a) (1)
	  	6.11	 
	 	  	 (a) (2)
	  	6.11	 
	 	  	 (a) (3)
	  	6.10	 
	 	  	 (a) (4)
	  	N.A.	2
	 	  	 (a) (5)
	  	6.11	 
	 	  	 (b)
	  	6.8; 6.11	 
	 	  	 (c)
	  	N.A.	 
	 311
	  	 (a)
	  	6.12	 
	 	  	 (b)
	  	6.12	 
	 	  	 (c)
	  	N.A.	 
	 312
	  	 (a)
	  	7.1	 
	 	  	 (b)
	  	7.2	 
	 	  	 (c)
	  	7.2	 
	 	  	 (d)
	  	7.4	 
	 313
	  	 (a)
	  	7.4	 
	 	  	 (b) (1)
	  	7.4	 
	 	  	 (b) (2)
	  	7.4; 11.5	 
	 	  	 (c)
	  	7.4	 
	 	  	 (d)
	  	7.3	 
	 314
	  	 (a)
	  	11.1	 
	 	  	 (b)
	  	11.15	 
	 	  	 (c) (1)
	  	11.1	 
	 	  	 (c) (2)
	  	11.1	 
	 	  	 (c) (3)
	  	11.1	 
	 	  	 (d)
	  	11.1	 
	 	  	 (e)
	  	11.1	 
	 	  	 (f)
	  	11.1	 
	 315
	  	 (a)
	  	6.1	 
	 	  	 (b)
	  	6.5; 11.5	 
	 	  	 (c)
	  	6.1	 
	 	  	 (d)
	  	6.1	 
	 	  	 (e)
	  	5.13	 
	 316
	  	 (a) (last sentence)
	  	2.7	 
	 	  	 (a) (1) (A)
	  	5.11	 
	 	  	 (a) (1) (B)
	  	5.12	 
	 	  	 (a) (2)
	  	5.11	 

	1	Note: This Cross Reference Table shall not, for any purpose, be deemed to be part of this Indenture. 

  

	2	N.A. means Not Applicable. 

  

					
	 	 	 	 	E*Trade 2004-1 Indenture

					
	 	  	 (b)
	  	5.7
	 	  	 (c)
	  	N.A.
	 317
	  	 (a) (1)
	  	5.3
	 	  	 (a) (2)
	  	5.3
	 	  	 (b)
	  	3.3
	 318
	  	 (a)
	  	11.7

  

					
	 	 	 	 	E*Trade 2004-1 Indenture

  
 INTRODUCTORY STATEMENT

  
 This INDENTURE dated as of December 16, 2004 (the
“Indenture”), between E*TRADE RV AND MARINE TRUST 2004-1, a New York common law trust (the “Issuer”), and JPMORGAN CHASE BANK, N.A., a national banking association, as trustee and not in its individual capacity (the
“Indenture Trustee”). 
  
 Each party agrees as
follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Issuer’s Class A-1 Asset Backed Notes, Class A-2 Asset Backed Notes, Class A-3 Asset Backed Notes, Class A-4 Asset Backed Notes, Class A-5
Asset Backed Notes, Class B Asset Backed Notes, Class C Asset Backed Notes, Class D Asset Backed Notes and Class E Asset Backed Notes (together, the “Notes”): 
  
 GRANTING CLAUSE 
  
 The Issuer hereby Grants to the Indenture Trustee at the Closing Date, as Indenture Trustee for the benefit of the Holders of the Notes, all of the
Issuer’s right, title and interest in, to and under: (a) the Receivables and all moneys received thereon after the Cut-Off Date; (b) the security interests in the Financed Assets (other than Federally Documented Boats) created pursuant to the
Receivables and any other interest of the Issuer in such Financed Assets; (c) any proceeds with respect to the Receivables and the Financed Assets under any Insurance Policies; (d) any proceeds from recourse to Dealers to the extent transferred
under the Depositor Sale Agreement; (e) any Financed Asset acquired in repossession; (f) the contents of the Receivable Files and all rights, benefits and proceeds arising therefrom or in connection therewith; (g) the Trust Accounts and all funds on
deposit from time to time in the Trust Accounts, and all investments and proceeds thereof (including all income thereon); (h) the Depositor Transfer Agreement, the Transfer and Servicing Agreement and the Boat Mortgage Trust Agreement (but only, in
the case of the Boat Mortgage Agreement, the extent relating to Financed Assets that are Federally Documented Boats); and (i) all present and future claims, demands, causes of action and chooses in action in respect of any or all of the foregoing
and all payments on or under and all proceeds of every kind and nature whatsoever in respect of any or all of the foregoing, including all proceeds of the conversion thereof, voluntary or involuntary, into cash or other liquid property, all cash
proceeds, accounts, accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts, insurance proceeds, condemnation awards, rights to payment of any and every kind and other forms of obligations and receivables,
instruments and other property which at any time constitute all or part of or are included in the proceeds of any of the foregoing (collectively, the “Collateral”). 
  
 The foregoing Grant is made in trust to secure the payment of principal of and interest on, and any other amounts owing in
respect of, the Notes, equally and ratably without prejudice, priority or distinction (subject to the terms of this Indenture), and to secure compliance with the provisions of this Indenture, all as provided in this Indenture. 
  
 The Indenture Trustee, as Indenture Trustee on behalf of the Holders of the
Notes, acknowledges such Grant and accepts the trusts under this Indenture in accordance with the provisions of this Indenture. 
  

					
	 	 	 	 	E*Trade 2004-1 Indenture

 ARTICLE I. 
  

DEFINITIONS AND INCORPORATION BY REFERENCE 
  
 SECTION 1.1 Definitions. Except as otherwise specified herein or as the context may otherwise require, capitalized terms used herein have
the respective meanings set forth in (or by reference in) Appendix A to the Transfer and Servicing Agreement, dated the same date as this Indenture (the “Transfer and Servicing Agreement”), among Issuer, ETCF Asset Funding
Corporation, as the Depositor and E*Trade Consumer Finance Corporation, as the Servicer. 
  
 SECTION 1.2 Incorporation by Reference of Trust Indenture Act. Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture.
The following TIA terms used in this Indenture have the following meanings: 
  
 “Commission” means the Securities and Exchange Commission. 
  
 “indenture securities” means the Notes. 
  
 “indenture security holder” means a Noteholder. 
  

“indenture to be qualified” means this Indenture. 
  
 “indenture trustee” or “institutional trustee” means the Indenture Trustee. 
  
 “obligor” on the indenture securities means the Issuer and
any other obligor on the indenture securities. 
  
 All other TIA
terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by Commission rule have the meaning assigned to them by such definitions. 
  
 SECTION 1.3 Rules of Construction. Unless the context otherwise requires: 
  
 (i) a term has the meaning assigned to it; 
  
 (ii) an accounting term not otherwise defined has the
meaning assigned to it in accordance with generally accepted accounting principles as in effect from time to time; 
  
 (iii) the words “hereof”, “herein”, “hereunder” and words of similar import when used in this Indenture
shall refer to this Indenture as a whole and not to any particular provision of this Indenture; Article, Section, Schedule and Exhibit references contained in this Indenture are references to Articles, Sections, Schedules and Exhibits in or to this
Indenture unless otherwise specified; and the word “or” is not exclusive; 
  
 (iv) “including” means “including without limitation”; 
  

					
	 	 	2	 	E*Trade 2004-1 Indenture

 (v) words in the singular include the plural and words in the plural include the
singular; and 
  
 (vi) any agreement (including
the Transfer and Servicing Agreement referred to above), instrument or statute defined or referred to herein or in any instrument or certificate delivered in connection herewith means such agreement, instrument or statute as from time to time
amended, amended and restated, or otherwise modified from time to time and includes (in the case of agreements or instruments) references to all attachments thereto and instruments incorporated therein; references to a Person are also to its
permitted successors and assigns. 
  
 ARTICLE II.

  
 THE NOTES 
  
 SECTION 2.1 Form. The Notes, together with the Indenture
Trustee’s certificate of authentication, shall be in substantially the form set forth in Exhibit A, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture, and may
have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may, consistently herewith, be determined by the officers executing such Notes, as evidenced by their execution of the Notes. Any portion
of the text of any Note may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Note. 
  
 Each Note shall be dated the date of its authentication. The terms of the Notes set forth in Exhibit A are part of the terms of this Indenture.

  
 SECTION 2.2 Execution, Authentication and
Delivery. The Notes shall be executed on behalf of the Issuer by any of its Authorized Officers. The signature of any such Authorized Officer on the Notes may be manual or facsimile. 
  
 Notes bearing the manual or facsimile signature of individuals who were at any time Authorized Officers of the Issuer shall
bind the Issuer, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such Notes or did not hold such offices at the date of such Notes. 
  
 The Indenture Trustee shall upon Issuer Order authenticate and deliver Class
A-1 Notes for original issue in an aggregate initial Note Balance of $61,200,000, Class A-2 Notes for original issue in an aggregate initial Note Balance of $66,200,000, Class A-3 Notes for original issue in an aggregate initial Note Balance of
$75,900,000, Class A-4 Notes for original issue in an aggregate principal amount of $32,500,000, Class A-5 Notes for original issue in an aggregate initial Note Balance of $34,572,000, Class B Notes for original issue in an aggregate initial Note
Balance of $10,042,000, Class C Notes for original issue in an aggregate initial Note Balance of $9,270,000, Class D Notes for original issue in an aggregate initial Note Balance of $10,815,000 and Class E Notes for original issue in an aggregate
initial Note Balance of $6,952,000. The aggregate initial Note Balance of Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4 Notes, Class A-5 Notes, Class B Notes, Class C Notes, Class D Notes and Class E Notes 

  

					
	 	 	3	 	E*Trade 2004-1 Indenture

 
outstanding at any time may not exceed such respective amounts except as provided in Section 2.5. 
  
 Each Note shall be dated the date of its authentication. The Notes, other
than the Class E Notes, shall be issuable as registered Notes in the minimum denomination of $1,000 and in integral multiples thereof. The Class E Notes shall be issued in the minimum denomination of $500,000 and in integral multiples of $1,000 in
excess thereof. 
  
 No Note shall be entitled to any benefit under
this Indenture or be valid or obligatory for any purpose, unless there appears on such Note a certificate of authentication substantially in the form provided for herein executed by the Indenture Trustee by the manual signature of one of its
authorized officers, and such certificate upon any Note shall be conclusive evidence, and the only evidence, that such Note has been duly authenticated and delivered hereunder. 
  
 SECTION 2.3 Temporary Notes. Pending the preparation of Definitive Notes, the Issuer may execute, and upon
receipt of an Issuer Order the Indenture Trustee shall authenticate and deliver, temporary Notes that are printed, lithographed, typewritten, mimeographed or otherwise produced, of the tenor of the Definitive Notes in lieu of which they are issued
and with such variations not inconsistent with the terms of this Indenture as the officers executing such Notes may determine, as evidenced by their execution of such Notes. 
  
 If temporary Notes are issued, the Issuer shall cause Definitive Notes to be prepared without unreasonable delay. After the
preparation of Definitive Notes, the temporary Notes shall be exchangeable for Definitive Notes upon surrender of the temporary Notes at the office or agency of the Issuer to be maintained as provided in Section 3.2, without charge to the
Holder. Upon surrender for cancellation of any one or more temporary Notes, the Issuer shall execute, and the Indenture Trustee upon Issuer Order shall authenticate and deliver in exchange therefor, a like principal amount of Definitive Notes of
authorized denominations and of the same Class. Until so exchanged, the temporary Notes shall in all respects be entitled to the same benefits under this Indenture as Definitive Notes. 
  
 SECTION 2.4 Registration; Registration of Transfer and Exchange. The Issuer shall cause to be kept a register
(the “Note Register”) in which, subject to such reasonable regulations as it may prescribe, the Issuer shall provide for the registration of Notes and the registration of transfers of Notes. The Indenture Trustee initially shall be
the “Note Registrar” for the purpose of registering Notes and transfers of Notes as herein provided. Upon any resignation of any Note Registrar, the Issuer shall promptly appoint a successor or, if it elects not to make such an
appointment, assume the duties of Note Registrar and shall promptly notify the Noteholders of such appointment or assumption. 
  
 If a Person other than the Indenture Trustee is appointed by the Issuer as Note Registrar, the Issuer shall give the Indenture Trustee prompt written
notice of the appointment of such Note Registrar and of the location, and any change in the location, of the Note Register, and the Indenture Trustee shall have the right to inspect the Note Register at all reasonable times and to obtain copies
thereof, and the Indenture Trustee shall have the right to conclusively rely upon a certificate executed on behalf of the Note Registrar by an Executive Officer thereof as to the 

  

					
	 	 	4	 	E*Trade 2004-1 Indenture

 
names and addresses of the Holders of the Notes and the principal amounts and number of such Notes. 
  
 Upon surrender for registration of transfer of any Note at the office or
agency of the Issuer to be maintained as provided in Section 3.2, if the requirements of Section 8-401 of the UCC are met, the Issuer shall execute, and upon its written request the Indenture Trustee shall authenticate and the Noteholder
shall obtain from the Indenture Trustee, in the name of the designated transferee or transferees, one or more new Notes of the same Class in any authorized denominations, of a like aggregate outstanding principal amount. 
  
 At the option of the Holder, Notes may be exchanged for other Notes of the
same Class in any authorized denominations, of a like aggregate outstanding principal amount, upon surrender of the Notes to be exchanged at such office or agency. 
  
 Whenever any Notes are so surrendered for exchange, if the requirements of Section 8-401 of the UCC are met, the Issuer
shall execute, and, upon Issuer Request, the Indenture Trustee shall authenticate and the Noteholder shall obtain from the Indenture Trustee, the Notes which the Noteholder making the exchange is entitled to receive. 
  
 All Notes issued upon any registration of transfer or exchange of Notes shall
be the valid obligations of the Issuer, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Notes surrendered upon such registration of transfer or exchange. 
  
 Every Note presented or surrendered for registration of transfer or exchange
shall be duly endorsed by, or be accompanied by a written instrument of transfer in form and substance satisfactory to the Indenture Trustee and the Issuer duly executed by, the Holder thereof or such Holder’s attorney-in-fact duly authorized
in writing, with such signature guaranteed by an “eligible grantor institution” meeting the requirements of the Note Registrar, which requirements may include membership or participation in the Securities Transfer Agent’s Medallion
Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Note Registrar in addition to, or in substitution for, STAMP, all in accordance with the Exchange Act. 
  
 No service charge shall be made to a Holder for any registration of transfer
or exchange of Notes, but the Issuer, the Indenture Trustee, or Note Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of
Notes, other than exchanges pursuant to Section 2.3 or 9.6 not involving any transfer. 
  
 The preceding provisions of this Section notwithstanding, the Issuer shall not be required to make and the Note Registrar need not register transfers or
exchanges of any Notes selected for redemption or of any Note for a period of 15 days preceding the due date for any payment with respect to such Note. 
  
 SECTION 2.5 Mutilated, Destroyed, Lost or Stolen Notes. If (a) any mutilated Note is surrendered to the Indenture Trustee, or the Indenture
Trustee receives evidence to its satisfaction of the destruction, loss or theft of any Note, and (b) there is delivered to the Indenture Trustee such security or indemnity as may be required by it to hold the Issuer and the Indenture Trustee
harmless, then, in the absence of notice to the Issuer, the Note Registrar or 

  

					
	 	 	5	 	E*Trade 2004-1 Indenture

 
the Indenture Trustee that such Note has been acquired by a “protected purchaser” (as contemplated by Article 8 of the UCC), and provided that the
requirements of Section 8-405 of the UCC are met, the Issuer shall execute, and upon its written request the Indenture Trustee shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Note, a
replacement Note of the same Class; provided, however, that if any such destroyed, lost or stolen Note, but not a mutilated Note, shall have become or within seven days shall be due and payable, or shall have been called for
redemption, instead of issuing a replacement Note, the Issuer may pay such destroyed, lost or stolen Note when so due or payable or upon the Redemption Date without surrender thereof. If, after the delivery of such replacement Note or payment of a
destroyed, lost or stolen Note pursuant to the proviso to the preceding sentence, a “protected purchaser” (as contemplated by Article 8 of the UCC) of the original Note in lieu of which such replacement Note was issued presents for payment
such original Note, the Issuer and the Indenture Trustee shall be entitled to recover such replacement Note (or such payment) from the Person to whom it was delivered or any Person taking such replacement Note from such Person to whom such
replacement Note was delivered or any assignee of such Person, except a “protected purchaser” (as contemplated by Article 8 of the UCC), and shall be entitled to recover upon the security or indemnity provided therefor to the extent of any
loss, damage, cost or expense incurred by the Issuer or the Indenture Trustee in connection therewith. 
  
 Upon the issuance of any replacement Note under this Section, the Issuer or the Indenture Trustee may require the payment by the Holder of such Note of a
sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other reasonable expenses (including the fees and expenses of the Indenture Trustee or the Note Registrar) and their counsel connected
therewith. 
  
 Every replacement Note issued pursuant to this
Section in replacement of any mutilated, destroyed, lost or stolen Note shall constitute an original additional contractual obligation of the Issuer, whether or not the mutilated, destroyed, lost or stolen Note shall be at any time enforceable by
anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Notes duly issued hereunder. 
  
 The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Notes. 
  
 SECTION 2.6 Persons Deemed Owner. Prior to due presentment for registration of transfer of any Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in whose name any
Note is registered (as of the day of determination except as provided in Section 2.7) as the owner of such Note for the purpose of receiving payments of principal of and interest, if any, on such Note and for all other purposes whatsoever,
whether or not such Note be overdue, and none of the Issuer, the Indenture Trustee or any agent of the Issuer or the Indenture Trustee shall be affected by notice to the contrary. 
  

					
	 	 	6	 	E*Trade 2004-1 Indenture

 SECTION 2.7 Payment of Principal and Interest; Defaulted Interest. 
  
 (a) The Class A-1 Notes, the Class A-2 Notes, the Class 3 Notes, the Class
A-4 Notes, the Class A-5 Notes, the Class B Notes, the Class C Notes, the Class D Notes and the Class E Notes shall accrue interest at the Class A-1 Interest Rate, the Class A-2 Interest Rate, the Class A-3 Interest Rate, the Class A-4 Interest
Rate, the Class A-5 Interest Rate, the Class B Interest Rate, the Class C Interest Rate, the Class D Interest Rate and the Class E Interest Rate, respectively, and such interest shall, if any, be due and payable on each Payment Date. Any installment
of interest or principal, if any, due and payable on a Note that is punctually paid or duly provided for by the Issuer on the applicable Payment Date shall be paid to the Person in whose name such Note (or one or more predecessor Notes) is
registered at the close of business on the Record Date by check mailed first-class postage prepaid to such Person’s address as it appears on the Note Register on such Record Date, except that, unless Definitive Notes have been issued pursuant
to Section 2.12, with respect to Notes registered at the close of business on the Record Date in the name of the nominee of the Clearing Agency (initially, such nominee shall be Cede & Co.), payment shall be made by wire transfer in
immediately available funds to the account designated by such nominee, except for the final installment of principal payable with respect to such Note on a Payment Date or on the applicable class Stated Maturity Date (and except for the Redemption
Price for any Note called for redemption pursuant to Section 10.1) which shall be payable as provided below. The funds represented by any such checks returned undelivered shall be held in accordance with Section 3.3. 
  
 (b) The principal of each Note shall be distributed on each Payment Date as
provided in Section 8.2. Notwithstanding the foregoing, the entire unpaid Note Balance and all accrued Interest thereon shall be due and payable, if not previously paid, on the earlier of (i) the date on which an Event of Default shall have
occurred and be continuing and if the Indenture Trustee or the holders of a majority of the Note Balance of the Controlling Class of Notes have declared the Notes to be, or the Notes have automatically become, immediately due and payable in the
manner provided in Section 5.2 and (ii) with respect to any Class of Notes, on the Stated Maturity Date of such Class. All principal and interest payments on each Class of Notes shall be made pro rata to the Noteholders of such Class entitled
thereto. The Indenture Trustee shall notify the Person in whose name a Note is registered at the close of business on the Record Date preceding the Payment Date on which the Indenture Trustee expects that the final installment of principal of and
interest on such Note shall be paid if the Issuer or the Servicer has notified the Indenture Trustee of such expectation at least five Business Days prior to such Record Date. Such notice shall be mailed or transmitted by facsimile prior to such
final Payment Date and shall specify that such final installment shall be payable to the Holder of record as of the applicable Record Date only upon presentation and surrender of such Note and shall specify the place where such Note may be presented
and surrendered for payment of such installment. Notices in connection with redemptions of Notes shall be mailed to Noteholders as provided in Section 10.2. 
  
 (c) If any interest payable on any Class of Notes is not paid on any Payment Date, interest on such unpaid interest shall
accrue at the applicable Interest Rate, and to the extent unpaid shall be due and payable on succeeding Payment Dates, to the extent permitted by law. 
  
 (d) A Noteholder’s portion of the aggregate outstanding principal balance of the related Class of Notes is the product of (i) the original
denomination of such Noteholder’s Note and (ii) the applicable Note Pool Factor. 
  

					
	 	 	7	 	E*Trade 2004-1 Indenture

 SECTION 2.8 Cancellation. All Notes surrendered for payment, registration of transfer,
exchange or redemption shall, if surrendered to any Person other than the Indenture Trustee, be delivered to the Indenture Trustee and shall be promptly cancelled by the Indenture Trustee. The Issuer may at any time deliver to the Indenture Trustee
for cancellation any Notes previously authenticated and delivered hereunder which the Issuer may have acquired in any manner whatsoever, and all Notes so delivered shall be promptly cancelled by the Indenture Trustee. No Notes shall be authenticated
in lieu of or in exchange for any Notes cancelled as provided in this Section, except as expressly permitted by this Indenture. All cancelled Notes may be held or disposed of by the Indenture Trustee in accordance with its standard retention or
disposal policy as in effect at the time unless the Issuer shall direct by an Issuer Order that they be destroyed or returned to it; provided, that such Issuer Order is timely and that such Notes have not been previously disposed of by the
Indenture Trustee. 
  
 SECTION 2.9 [Reserved].

  
 SECTION 2.10 Book-Entry Notes. The Notes, upon
original issuance, will be issued in the form of typewritten Notes representing the Book-Entry Notes, to be delivered to the Indenture Trustee, as agent for DTC, the initial Clearing Agency, by, or on behalf of, the Issuer. One fully registered Note
shall be issued with respect to each $500 million in principal amount of each Class of Notes and any such lesser amount. Such Notes shall initially be registered on the Note Register in the name of Cede & Co., the nominee of the initial Clearing
Agency, and no Note Owner shall receive a Definitive Note representing such Note Owner’s interest in such Note, except as provided in Section 2.12. Unless and until definitive, fully registered Notes (the “Definitive
Notes”) have been issued to Note Owners pursuant to Section 2.12: 
  

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

  

	 	(ii)	the Note Registrar and the Indenture Trustee shall be entitled to deal with the Clearing Agency for all purposes of this Indenture (including the payment of principal of and
interest on the Notes and the giving of instructions or directions hereunder) as the sole holder of the Notes, and shall have no obligation to the Note Owners; 

  

	 	(iii)	to the extent that the provisions of this Section conflict with any other provisions of this Indenture, the provisions of this Section shall control; 

  

	 	(iv)	the rights of Note Owners shall be exercised only through the Clearing Agency and shall be limited to those established by law and agreements between or among such Note Owners and
the Clearing Agency, the Clearing Agency Participants or Persons acting through Clearing Agency Participants. Unless and until Definitive Notes are issued pursuant to Section 2.12, the initial Clearing Agency will make book-entry transfers
among the Clearing Agency Participants and receive and transmit payments of principal of and interest on the Notes to such Clearing Agency Participants; and 

  

					
	 	 	8	 	E*Trade 2004-1 Indenture

	 	(v)	whenever this Indenture requires or permits actions to be taken based upon instructions or directions of Noteholders evidencing a specified percentage of the aggregate Note Balance
of the Notes then Outstanding, the Clearing Agency shall be deemed to represent such percentage only to the extent that it has received instructions to such effect from Note Owners, Clearing Agency Participants or Persons acting through Clearing
Agency Participants owning or representing, respectively, such required percentage of the beneficial interest in the Notes and has delivered such instructions to the Indenture Trustee. 

  
 SECTION 2.11 Notices to Clearing Agency. Whenever a notice or
other communication to the Noteholders is required under this Indenture, unless and until Definitive Notes shall have been issued to such Note Owners pursuant to Section 2.12, the Indenture Trustee shall give all such notices and
communications specified herein to be given to Holders of the Notes to the Clearing Agency, and shall have no obligation to such Note Owners. 
  
 SECTION 2.12 Definitive Notes. If (a) the Depositor advises the Indenture Trustee in writing that the Clearing Agency is no longer willing
or able to properly discharge its responsibilities with respect to the Notes, and the Depositor or the Indenture Trustee is unable to locate a qualified successor, (b) the Depositor at its option advises the Indenture Trustee in writing that it
elects to terminate the book-entry system through the Clearing Agency or (c) after the occurrence of an Event of Default, Note Owners representing beneficial interests aggregating more than 50% of the aggregate Note Balance of the Notes then
Outstanding, voting together as a single Class, advise the Indenture Trustee through the Clearing Agency or its successor in writing that the continuation of a book entry system through the Clearing Agency or its successor is no longer in the best
interests of such Note Owners, then the Indenture Trustee, through the Clearing Agency Participants, shall notify all Note Owners of Book-Entry Notes of the occurrence of any such event and of the availability of Definitive Notes to Note Owners
requesting the same. Upon surrender to the Indenture Trustee of the typewritten Note or Notes representing the Book-Entry Notes by the Clearing Agency, accompanied by registration instructions, the Issuer shall execute and the Indenture Trustee
shall authenticate the Definitive Notes in accordance with the instructions of the Clearing Agency. None of the Issuer, Note Registrar or the Indenture Trustee shall be liable for any delay in delivery of such instructions and may conclusively rely
on, and shall be protected in relying on, such instructions. Upon the issuance of Definitive Notes, the Indenture Trustee shall recognize the Holders of the Definitive Notes as Noteholders. 
  
 The Definitive Notes shall be typewritten, printed, lithographed or engraved
or produced by any combination of these methods (with or without steel engraved borders), all as determined by the officers executing such Notes, as evidenced by their execution of such Notes. 
  
 SECTION 2.13 Tax Treatment. The Issuer has entered into this
Indenture, and the Notes shall be issued, with the intention that, for all purposes including federal, state and local income, single business and franchise tax purposes, the Notes shall qualify as indebtedness of the Issuer secured by the Trust
Estate. The Issuer, by entering into this Indenture, and each Noteholder, by its acceptance of a Note (and each Note Owner by its acceptance of an interest in the applicable Book-Entry Note), agree to treat the Notes for all purposes, including
federal, 

  

					
	 	 	9	 	E*Trade 2004-1 Indenture

 
state and local income, single business and franchise tax purposes, as indebtedness of the Issuer. 
  
 SECTION 2.14 Transfer of Class E Notes. 
  
 (a) The Class E Notes may at no time be held by more than 99 persons. No
transfer of the Class E Notes will be permitted to the extent that such transfer would cause the number of direct or indirect holders of an interest in all outstanding series of Class E Notes to exceed a number equal to 99 persons. 
  
 (b) No Class E Noteholder shall acquire or transfer any Class E Note (or any
interest therein) or cause any Class E Notes (or any interest therein) to be marketed on or through an “established securities market” within the meaning of section 7704(b)(1) of the Code, including, without limitation, an over-the-counter
market or an interdealer quotation system that regularly disseminates firm buy or sell quotations. 
  
 (c) Each Class E Noteholder shall be required to represent and warrant that it (i) is not, and will not become, a partnership, Subchapter S corporation or
grantor trust for U.S. federal income tax purposes, or (ii) is such an entity and at all times the value of any Class E Notes that it holds or beneficially owns represents, or will represent, less than 50% of the value of all of its assets and at no
time will any Class E Notes that it holds or beneficially owns by disproportionately represented (in relation to its other assets) in the value of any of its ownership interests. 
  
 (d) The provisions of this Section 2.14 and of the Indenture generally are intended to prevent the Issuer from being
characterized as a “public traded partnership” within the meaning of section 7704 of the Code, in reliance on Treasury Regulations sections 1.7704-1(e) and (h). 
  
 (e) Each Class E Noteholder shall be required to represent and warrant that it is a person who is, for U.S. federal income
tax purposes, (i) a citizen or resident of the United States, (ii) a corporation or partnership organized in or under the laws of the United States or any state (or the District of Columbia), (iii) an estate the income of which is subject to U.S.
federal income tax, regardless of source or (iv) a trust if a court within the United States is able to exercise primary supervision over the administration of such trust and one or more persons described in this paragraph have the authority to
control all substantial decisions of such trust. Each Class E Noteholder shall agree to provide (A) a certification of non-foreign status, in such form as may be requested by the Issuer, signed under penalties of perjury and (B) such other
certification, representations or opinion of counsel as may be requested by the Issuer. 
  
 (f) None of the Class E Notes have been or will be registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any other jurisdiction. Consequently, the Class E
Notes are not transferable other than pursuant to an exemption from the registration requirements of the Securities Act and satisfaction of certain other provisions specified herein. The Class E Notes or an interest in the Class E Notes are being
sold in a private placement pursuant to Section 4(2) of the Securities Act on the date hereof. Thereafter, no further sale, pledge or other transfer of any Class E Note (or interest therein) may be made by any person unless either (i) such sale,
pledge or other transfer is made to a “qualified institutional buyer” that executes a certificate, in the form attached hereto as Exhibit B or otherwise in form and substance satisfactory to the Indenture Trustee and the Depositor, to the
effect that (A) it is a “qualified institutional buyer” as defined under Rule 144A under the Securities Act, acting for its 

  

					
	 	 	10	 	E*Trade 2004-1 Indenture

 
own account or the accounts of other “qualified institutional buyers” as defined under Rule 144A under the Securities Act, and (B) it is aware that
the transferor of such Note intends to rely on the exemption from the registration requirements of the Securities Act provided by Rule 144A under the Securities Act, or (ii) such sale, pledge or other transfer is otherwise made in a transaction
exempt from the registration requirements of the Securities Act, in which case (A) the Indenture Trustee shall require that both the prospective transferor and the prospective transferee certify to the Indenture Trustee and the Depositor in writing
the facts surrounding such transfer, which certification shall be in form and substance satisfactory to the Indenture Trustee and the Depositor, and (B) the Indenture Trustee shall require a written opinion of counsel (which will not be at the
expense of the Depositor, the Servicer or the Indenture Trustee) satisfactory to the Depositor and the Indenture Trustee to the effect that such transfer will not violate the Securities Act. Neither the Depositor nor the Indenture Trustee will
register any of the Class E Notes under the Securities Act, qualify any of the Class E Notes under the securities laws of any state or provide registration rights to any purchaser or holder thereof. 
  
 (g) The Indenture Trustee shall have no obligation or duty to monitor,
determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Class E Note other than to require delivery of such certificates and
other documentation or evidence as are expressly required by, and to do so if and when expressly required by the terms of, this Indenture, and to examine the same to determine substantial compliance as to form with the express requirements hereof.

  
 ARTICLE III. 
  
 COVENANTS 
  
 SECTION 3.1 Payment of Principal and Interest. The Issuer shall duly and punctually pay the principal of and
interest, if any, on the Notes in accordance with the terms of the Notes and this Indenture. Without limiting the foregoing, subject to Section 8.2, the Issuer shall cause to be distributed all amounts on deposit in the Collection Account and
Principal Distribution Account on a Payment Date deposited therein pursuant to the Transfer and Servicing Agreement and the Indenture (i) for the benefit of the Class A-1 Notes, to the Class A-1 Noteholders, (ii) for the benefit of the Class A-2
Notes, to the Class A-2 Noteholders, (iii) for the benefit of the Class A-3 Notes, to the Class A-3 Noteholders, (iv) for the benefit of the Class A-4 Notes, to the Class A-4 Noteholders, (v) for the benefit of the Class A-5 Notes, to the Class A-5
Noteholders, (vi) for the benefit of the Class B Notes, to the Class B Noteholders, (vii) for the benefit of the Class C Notes, to the Class C Noteholders, (viii) for the benefit of the Class D Notes, to the Class D Noteholders and (ix) for the
benefit of the Class E Notes, to the Class E Noteholders. Amounts properly withheld under the Code by any Person from a payment to any Noteholder of interest or principal shall be considered as having been paid by the Issuer to such Noteholder for
all purposes of this Indenture. 
  
 SECTION 3.2
Maintenance of Office or Agency. The Issuer shall maintain in the Borough of Manhattan, The City of New York, an office or agency where Notes may be surrendered for registration of transfer or exchange, and where notices and demands to or
upon the Issuer in respect of the Notes and this Indenture may be served. The Issuer hereby initially appoints the Indenture Trustee to serve as its agent for the foregoing purposes. The Issuer shall 

  

					
	 	 	11	 	E*Trade 2004-1 Indenture

 
give prompt written notice to the Indenture Trustee of the location, and of any change in the location, of any such office or agency. If at any time the
Issuer shall fail to maintain any such office or agency or shall fail to furnish the Indenture Trustee with the address thereof, such surrenders, notices and demands may be made or served at the Corporate Trust Office, and the Issuer hereby appoints
the Indenture Trustee as its agent to receive all such surrenders, notices and demands. 
  
 SECTION 3.3 Money for Payments To Be Held in Trust. All payments of amounts due and payable with respect to any Notes that are to be made from amounts withdrawn from the Collection Account and the Note
Distribution Account pursuant to Section 8.2 shall be made on behalf of the Issuer by the Indenture Trustee or by another Paying Agent, and no amounts so withdrawn from the Collection Account and the Principal Distribution Account for payments of
Notes shall be paid over to the Issuer except as provided in this Section. 
  
 On each Payment Date and Redemption Date, the Issuer shall deposit or cause to be deposited in the Collection Account an aggregate sum sufficient to pay the amounts then becoming due under the Notes, such sum to be
held in trust for the benefit of the Persons entitled thereto, and (unless the Paying Agent is the Indenture Trustee) shall promptly notify the Indenture Trustee in writing of its action or failure so to act. 
  
 The Issuer shall cause each Paying Agent other than the Indenture Trustee to
execute and deliver to the Indenture Trustee an instrument in which such Paying Agent shall agree with the Indenture Trustee (and if the Indenture Trustee acts as Paying Agent, it hereby so agrees), subject to the provisions of this Section, that
such Paying Agent shall: 
  

	 	(i)	hold all sums held by it for the payment of amounts due with respect to the Notes in trust for the benefit of the Persons entitled thereto until such sums shall be paid to such
Persons or otherwise disposed of as herein provided and pay such sums to such Persons as herein provided; 

  

	 	(ii)	give the Indenture Trustee written notice of any default by the Issuer (or any other obligor upon the Notes) of which it has actual knowledge in the making of any payment required
to be made with respect to the Notes; 

  

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

  

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

  

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

  

					
	 	 	12	 	E*Trade 2004-1 Indenture

 The Issuer may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture
or for any other purpose, by Issuer Order direct any Paying Agent to pay to the Indenture Trustee all sums held in trust by such Paying Agent, such sums to be held by the Indenture Trustee upon the same trusts as those upon which the sums were held
by such Paying Agent; and upon such payment by any Paying Agent to the Indenture Trustee, such Paying Agent shall be released from all further liability with respect to such money. 
  
 Subject to applicable laws with respect to escheat of funds, any money held by the Indenture Trustee or any Paying Agent in
trust for the payment of any amount due with respect to any Note and remaining unclaimed for two years after such amount has become due and payable shall be discharged from such trust and be distributed by the Indenture Trustee to the Issuer on
Issuer Request; and the Holder of such Note shall thereafter, as an unsecured general creditor, look only to the Issuer for payment thereof (but only to the extent of the amounts so paid to the Issuer), and all liability of the Indenture Trustee or
such Paying Agent with respect to such trust money shall thereupon cease; provided, however, that the Indenture Trustee or such Paying Agent, before being required to make any such repayment, shall at the expense and written direction
of the Issuer cause to be published once, in a newspaper published in the English language, customarily published on each Business Day and of general circulation in The City of New York, notice that such money remains unclaimed and that, after a
date specified therein, which shall not be less than 30 days from the date of such publication, any unclaimed balance of such money then remaining shall be repaid to the Issuer. The Indenture Trustee shall also adopt and employ, at the expense and
direction of the Issuer, any other reasonable means of notification of such repayment (including, but not limited to, mailing notice of such repayment to Holders whose Notes have been called but have not been surrendered for redemption or whose
right to or interest in moneys due and payable but not claimed is determinable from the records of the Indenture Trustee or of any Paying Agent, at the last address of record for each such Holder). 
  
 SECTION 3.4 Existence. The Issuer shall keep in full effect its
existence, rights and franchises as a trust under the laws of the State of New York (unless it becomes, or any successor Issuer hereunder is or becomes, organized under the laws of any other State or of the United States of America, in which case
the Issuer shall keep in full effect its existence, rights and franchises under the laws of such other jurisdiction) and shall obtain and preserve its qualification to do business in each jurisdiction in which such qualification is or shall be
necessary to protect the validity and enforceability of this Indenture, the Notes, the Collateral and each other instrument or agreement included in the Trust Estate. 
  
 SECTION 3.5 Protection of Trust Estate. The Issuer shall from time to time execute and deliver all such
supplements and amendments hereto and all such financing statements, continuation statements, instruments of further assurance and other instruments, and shall take such other action necessary or advisable to: 
  

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

  

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

  

					
	 	 	13	 	E*Trade 2004-1 Indenture

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

  

	 	(iv)	enforce any of the Collateral; or 

  

	 	(v)	preserve and defend title to the Trust Estate and the rights of the Indenture Trustee and the Noteholders in such Trust Estate against the claims of all Persons.

  
 The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact to execute all financing statements, continuation statements or other instruments prepared by the Issuer required to be filed pursuant to this Section 3.5. 
  
 SECTION 3.6 Opinions as to Trust Estate. 
  
 (a) On the Closing Date, the Issuer shall furnish to the Indenture Trustee an Opinion of Counsel either stating that, in the
opinion of such counsel, such action has been taken with respect to the recording and filing of this Indenture, any indentures supplemental hereto, and any other requisite documents, and with respect to the execution and filing of any financing
statements and continuation statements, as are necessary to perfect and make effective the lien and security interest of this Indenture and reciting the details of such action, or stating that, in the opinion of such counsel, no such action is
necessary to make such lien and security interest effective. 
  
 (b) On or before March 15, in each calendar year, beginning in 2005, the Issuer shall furnish to the Indenture Trustee an Opinion of Counsel either stating that, in the opinion of such counsel, such action has been taken with respect to the
recording, filing, re-recording and refiling of this Indenture, any indentures supplemental hereto and any other requisite documents and with respect to the execution and filing of any financing statements and continuation statements as is necessary
to maintain the lien and security interest created by this Indenture and reciting the details of such action, or stating that in the opinion of such counsel no such action is necessary to maintain such lien and security interest. Such Opinion of
Counsel shall also describe the recording, filing, re-recording and refiling of this Indenture, any indentures supplemental hereto and any other requisite documents and the execution and filing of any financing statements and continuation statements
that shall, in the opinion of such counsel, be required to maintain the lien and security interest of this Indenture until March 15 in the following calendar year. 
  
 SECTION 3.7 Performance of Obligations; Servicing of Receivables. 
  
 (a) The Issuer shall not take any action and shall use its best efforts not
to permit any action to be taken by others that would release any Person from any of such Person’s material covenants or obligations under any instrument or agreement included in the Trust Estate or that would result in the amendment,
hypothecation, subordination, termination or discharge of, or impair the validity or effectiveness of, any such instrument or agreement, except as expressly provided in this Indenture, the Transfer and Servicing Agreement or such other instrument or
agreement. 
  

					
	 	 	14	 	E*Trade 2004-1 Indenture

 (b) The Issuer may contract with other Persons to assist it in performing its duties under this
Indenture, and any performance of such duties by a Person identified to the Indenture Trustee in an Officer’s Certificate of the Issuer shall be deemed to be action taken by the Issuer. Initially, the Issuer has contracted with the Servicer to
assist the Issuer in performing its duties under this Indenture. 
  
 (c) The Issuer shall punctually perform and observe all of its obligations and agreements contained in this Indenture, the other Basic Documents and in the instruments and agreements included in the Trust Estate, including but not limited
to filing or causing to be filed all UCC financing statements and continuation statements required to be filed by the terms of this Indenture and the Transfer and Servicing Agreement in accordance with and within the time periods provided for herein
and therein. 
  
 (d) If the Issuer shall have knowledge of the
occurrence of a Servicer Default under the Transfer and Servicing Agreement, the Issuer shall promptly notify the Indenture Trustee and the Rating Agencies in writing thereof, and shall specify in such notice the action, if any, the Issuer is taking
with respect to such default. If a Servicer Default shall arise from the failure of the Servicer to perform any of its duties or obligations under the Transfer and Servicing Agreement with respect to the Receivables, the Issuer shall take all
reasonable steps available to it to remedy such failure. 
  
 (e)
As promptly as possible after notice of termination of the Servicer’s rights and powers has been given to the Servicer pursuant to Section 8.01 of the Transfer and Servicing Agreement, a successor servicer (the “Successor
Servicer”) shall be appointed in accordance with the terms thereof, and such Successor Servicer shall accept its appointment by a written assumption in a form acceptable to the Indenture Trustee, or, in the case of the Back-Up Servicer, in
accordance with the Back-Up Servicing Agreement. Any Successor Servicer other than the Indenture Trustee or the Back-Up Servicer shall (i) be an established financial institution having a net worth of not less than $100,000,000 and whose regular
business includes the servicing of Contracts and (ii) enter into a servicing agreement with the Issuer having substantially the same provisions as the provisions of the Transfer and Servicing Agreement applicable to the Servicer which is being
replaced by such Successor Servicer. If the Indenture Trustee shall succeed to the Servicer’s duties as servicer of the Receivables as provided herein and in the Transfer and Servicing Agreement, it shall do so in its individual capacity and
not in its capacity as Indenture Trustee and, accordingly, the provisions of Article VI hereof shall be inapplicable to the Indenture Trustee in its duties as the successor to the Servicer and in connection with the Indenture Trustee’s
servicing of the Receivables. In case the Indenture Trustee shall become successor to the Servicer under the Transfer and Servicing Agreement, the Indenture Trustee shall be entitled to receive the Servicing Fee in accordance with the Basic
Documents (so long as it is acting as Servicer) and shall also be entitled to appoint as Servicer any one of its Affiliates, provided that it shall be fully liable for the actions and omissions of such Affiliate in such capacity as Successor
Servicer. 
  
 (f) [Reserved]. 
  
 (g) Without derogating from the absolute nature of the assignment granted to
the Indenture Trustee under this Indenture or the rights of the Indenture Trustee hereunder, the Issuer 

  

					
	 	 	15	 	E*Trade 2004-1 Indenture

 
agrees (i) that it shall not, without the prior written consent of the Indenture Trustee or the holders of a majority of the Controlling Class of Notes,
amend, modify, waive, supplement, terminate or surrender, or agree to any amendment, modification, supplement, termination, waiver or surrender of, the terms of any Collateral (except to the extent otherwise provided in the Transfer and Servicing
Agreement) or the Basic Documents, or waive timely performance or observance by any Person under the Basic Documents; and (ii) that any such amendment, modification, waiver, supplement, termination or surrender shall not (A) increase or reduce in
any manner the amount of, or accelerate or delay the timing of, distributions that are required to be made for the benefit of the Noteholders or (B) reduce the aforesaid percentage of the Notes that is required to consent to any such amendment,
without the consent of the Holders of all the Notes then Outstanding. If any such amendment, modification, waiver, supplement, termination or surrender shall be so consented to by the Indenture Trustee or such Holders, the Issuer agrees, promptly
following a request by the Indenture Trustee to do so, to execute and deliver, in its own name and at its own expense, such agreements, instruments, consents and other documents as the Indenture Trustee may deem necessary or appropriate in the
circumstances. 
  
 SECTION 3.8 Negative Covenants.
So long as any Notes are Outstanding, the Issuer shall not: 
  

	 	(i)	except as expressly permitted by this Indenture or any other Basic Document sell, transfer, exchange or otherwise dispose of any of the properties or assets of the Issuer, including
those included in the Trust Estate, unless directed to do so by the Indenture Trustee, or dissolve or liquidate in whole or in part; 

  

	 	(ii)	claim any credit on, or make any deduction from the principal or interest payable in respect of, the Notes (other than amounts properly withheld from such payments under the Code or
applicable state law) or assert any claim against any present or former Noteholder by reason of the payment of the taxes levied or assessed upon the Issuer or any part of the Trust Estate; or 

  

	 	(iii)	(A) permit the validity or effectiveness of this Indenture to be impaired, or permit the lien of this Indenture to be amended, hypothecated, subordinated, terminated or discharged,
or permit any Person to be released from any covenants or obligations with respect to the Notes under this Indenture except as may be expressly permitted hereby, (B) permit any lien, charge, excise, claim, security interest, mortgage or other
encumbrance (other than the lien of this Indenture) to be created on or extend to or otherwise arise upon or burden the Trust Estate or any part thereof or any interest therein or the proceeds thereof (other than tax liens, mechanics’ liens and
other liens that arise by operation of law, in each case on any of the Financed Assets and arising solely as a result of an action or omission of the related Obligor) or (C) permit the lien of this Indenture not to constitute a valid first priority
(other than with respect to any such tax, mechanics’ or other lien) security interest in the Trust Estate. 

  

					
	 	 	16	 	E*Trade 2004-1 Indenture

 SECTION 3.9 Annual Statement as to Compliance. The Issuer shall deliver to the Indenture
Trustee, on or before March 15 of each year beginning in 2005, an Officer’s Certificate stating, as to the Authorized Officer signing such Officer’s Certificate, that: 
  

	 	(i)	a review of the activities of the Issuer during such year and of its performance under this Indenture has been made under such Authorized Officer’s supervision; and

  

	 	(ii)	to the best of such Authorized Officer’s knowledge, based on such review, the Issuer has complied with all conditions and covenants under this Indenture throughout such year
or, if there has been a default in its compliance with any such condition or covenant, specifying each such default known to such Authorized Officer and the nature and status thereof. 

  
 SECTION 3.10 Issuer May Consolidate, etc., Only on Certain
Terms. 
  
 (a) The Issuer shall not consolidate or merge with
or into any other Person, unless: 
  

	 	(i)	the Person (if other than the Issuer) formed by or surviving such consolidation or merger shall be a Person organized and existing under the laws of the United States of America or
any State or the District of Columbia and shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Indenture Trustee, in form satisfactory to the Indenture Trustee, the due and punctual payment of the principal of
and interest on all Notes and the performance or observance of every agreement and covenant of this Indenture on the part of the Issuer to be performed or observed, all as provided herein; 

  

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

  

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

  

	 	(iv)	the Issuer shall have received an Opinion of Counsel (and shall have delivered copies thereof to the Indenture Trustee) to the effect that such transaction shall not have any
material adverse tax consequence to the Issuer, any Noteholder or the Residual Interestholder; 

  

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

  

	 	(vi)	 the Issuer shall have delivered to the Indenture Trustee an Officer’s Certificate and an Opinion of Counsel each stating that such consolidation or merger and
such supplemental indenture comply with this Article III and that all conditions precedent herein provided for relating to such 

  

					
	 	 	17	 	E*Trade 2004-1 Indenture

	 	 
transaction have been complied with (including any filing required by the Exchange Act). 

  
 (b) Except as otherwise expressly contemplated by the Transfer and Servicing
Agreement, the Issuer shall not convey or transfer any of its properties or assets, including those included in the Trust Estate, to any Person, unless: 
  

	 	(i)	the Person that acquires by conveyance or transfer the properties and assets of the Issuer the conveyance or transfer of which is hereby restricted (A) shall be a United States
citizen or a Person organized and existing under the laws of the United States of America or any State, (B) expressly assumes, by an indenture supplemental hereto, executed and delivered to the Indenture Trustee, in form satisfactory to the
Indenture Trustee, the due and punctual payment of the principal of and interest on all Notes and the performance or observance of every agreement and covenant of this Indenture on the part of the Issuer to be performed or observed, all as provided
herein, (C) expressly agrees by means of such supplemental indenture that all right, title and interest so conveyed or transferred shall be subject and subordinate to the rights of Holders of the Notes, (D) unless otherwise provided in such
supplemental indenture, expressly agrees to indemnify, defend and hold harmless the Issuer against and from any loss, liability or expense arising under or related to this Indenture and the Notes and (E) expressly agrees by means of such
supplemental indenture that such Person (or if a group of Persons, then one specified Person) shall make all filings with the Commission (and any other appropriate Person) required by the Exchange Act in connection with the Notes;

  

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

  

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

  

	 	(iv)	the Issuer shall have received an Opinion of Counsel (and shall have delivered copies thereof to the Indenture Trustee) to the effect that such transaction shall not have any
material adverse tax consequence to the Issuer, any Noteholder or the Residual Interestholder; 

  

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

  

	 	(vi)	the Issuer shall have delivered to the Indenture Trustee an Officer’s Certificate and an Opinion of Counsel each stating that such conveyance or transfer and such supplemental
indenture comply with this Article III and that all conditions precedent herein provided for relating to such transaction have been complied with (including any filing required by the Exchange Act). 

  

					
	 	 	18	 	E*Trade 2004-1 Indenture

 SECTION 3.11 Successor or Transferee. 
  
 (a) Upon any consolidation or merger of the Issuer in accordance with Section
3.10(a), the Person formed by or surviving such consolidation or merger (if other than the Issuer) shall succeed to, and be substituted for, and may exercise every right and power of, the Issuer under this Indenture with the same effect as if such
Person had been named as the Issuer herein. 
  
 (b) Upon a
conveyance or transfer of the assets and properties of the Issuer including the Trust Estate pursuant to Section 3.10(b), (i) the Person acquiring such assets and properties shall succeed to, and be substituted for, and may exercise every
right and power of, the Issuer under this Indenture with the same effect as if such Person had been named as the Issuer herein and (ii) E*Trade RV and Marine Trust 2004-1 shall be released from every covenant and agreement of this Indenture to be observed or performed on the part of the Issuer with respect to the Notes immediately upon the delivery of written
notice to the Indenture Trustee stating that E*Trade RV and Marine Trust 2004-1 is to be so released. 
  
 SECTION 3.12 No Other Business. The Issuer shall not engage in
any business other than financing, purchasing, owning, selling and managing the Receivables in the manner contemplated by this Indenture and the other Basic Documents and activities incidental thereto. 
  
 SECTION 3.13 No Borrowing. The Issuer shall not issue, incur,
assume, guarantee or otherwise become liable, directly or indirectly, for any indebtedness other than as contemplated by this Indenture and the other Basic Documents. 
  
 SECTION 3.14 Servicer’s Obligations. The Issuer shall cause the Servicer to comply with Sections
4.09, 4.10, 4.11 and Article IX of the Transfer and Servicing Agreement. 
  
 SECTION 3.15 Guarantees, Loans, Advances and Other Liabilities. Except as contemplated by the Transfer and Servicing Agreement or this
Indenture, the Issuer shall not make any loan or advance of credit to, or guarantee (directly or indirectly or by an instrument having the effect of assuring another’s payment or performance on any obligation or capability of so doing or
otherwise), endorse or otherwise become contingently liable, directly or indirectly, in connection with the obligations, stocks or dividends of, or own, purchase, repurchase or acquire (or agree contingently to do so) any stock, obligations, assets
or securities of, or any other interest in, or make any capital contribution to, any other Person. 
  
 SECTION 3.16 Capital Expenditures. The Issuer shall not make any expenditure (by long-term or operating lease or otherwise) for capital
assets (either realty or personalty). 
  
 SECTION 3.17
[Reserved]. 
  
 SECTION 3.18 Restricted
Payments. The Issuer shall not, directly or indirectly, (i) pay any dividend or make any distribution (by reduction of capital or otherwise), whether in cash, property, securities or a combination thereof, to the Owner Trustee or any owner of a
beneficial interest in the Issuer or otherwise with respect to any ownership or equity interest or security in or of the Issuer or to the Servicer, (ii) redeem, purchase, retire or otherwise acquire for value any such ownership or equity interest or
security or (iii) set aside or otherwise 

  

					
	 	 	19	 	E*Trade 2004-1 Indenture

 
segregate any amounts for any such purpose; provided, however, that the Issuer may make, or cause to be made, distributions as contemplated by, and to the
extent funds are available for such purpose under, this Indenture, the Transfer and Servicing Agreement or the Trust Agreement. The Issuer shall not, directly or indirectly, make payments to or distributions from the Collection Account except in
accordance with this Indenture and the other Basic Documents. 
  
 SECTION 3.19 Notice of Events of Default. In addition to its obligations under the last paragraph of Section 5.1, the Issuer shall give the Indenture Trustee and the Rating Agencies written notice of each Event of
Default hereunder and each default on the part of the Servicer, the Transferor or the Depositor of its obligations under the Transfer and Servicing Agreement, in each case promptly after becoming aware of such Event of Default or default.

  
 SECTION 3.20 Further Instruments and Acts. Upon
request of the Indenture Trustee, the Issuer shall execute and deliver such further instruments and do such further acts as may be reasonably necessary or proper to carry out more effectively the purpose of this Indenture. 
  
 SECTION 3.21 Perfection Representations, Warranties and
Covenants. The perfection, representations, warranties and covenants on Schedule I shall be deemed part of this Indenture for all purposes. 
  
 ARTICLE IV. 
  
 SATISFACTION AND DISCHARGE 
  
 SECTION 4.1 Satisfaction and Discharge of Indenture. This Indenture shall cease to be of further effect with respect to the Notes except as to (a) rights of registration of transfer and exchange, (b)
substitution of mutilated, destroyed, lost or stolen Notes, (c) rights of Noteholders to receive payments of principal thereof and interest thereon, (d) Sections 3.3, 3.4, 3.5, 3.8, 3.10, 3.12 and
3.13, (e) the rights and immunities of the Indenture Trustee hereunder (including the rights of the Indenture Trustee under Section 6.7), (f) the obligations of the Indenture Trustee under Section 4.2) and (g) the rights of
Noteholders as beneficiaries hereof with respect to the property so deposited with the Indenture Trustee payable to all or any of them, and the Indenture Trustee, on demand of and at the expense of the Issuer, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture with respect to the Notes, when: 
  

	 	(i)	either 

  
 (A) all Notes theretofore authenticated and delivered (other than (i) Notes that have been destroyed, lost or stolen and that have been replaced or paid as provided in Section 2.5 and (ii) Notes for whose
payment money has theretofore been deposited in trust or segregated and held in trust by the Issuer and thereafter repaid to the Issuer or discharged from such trust, as provided in Section 3.3) have been delivered to the Indenture Trustee
for cancellation; or 
  

					
	 	 	20	 	E*Trade 2004-1 Indenture

 (B) all such Notes not theretofore delivered to the Indenture Trustee for cancellation 
  
 (1) have become due and payable, 
  
 (2) shall become due and payable at the applicable Stated Maturity Date
within one year, or 
  
 (3) are to be called for redemption
within one year under arrangements satisfactory to the Indenture Trustee for the giving of notice of redemption by the Indenture Trustee in the name, and at the expense, of the Issuer, 
  
 and the Issuer, in the case of clauses (1), (2) or (3), above, has irrevocably deposited or caused to
be irrevocably deposited with the Indenture Trustee cash or direct obligations of or obligations guaranteed by the United States of America (which shall mature prior to the date such amounts are payable), in trust for such purpose, in an amount
sufficient to pay and discharge the entire indebtedness on such Notes not theretofore delivered to the Indenture Trustee for cancellation when due to the applicable Stated Maturity Date or Redemption Date (if Notes shall have been called for
redemption pursuant to Section 10.1), as the case may be; 
  

	 	(B)	the Issuer has paid or caused to be paid all other sums payable hereunder and under the other Basic Documents by the Issuer; and 

  

	 	(C)	the Issuer has delivered to the Indenture Trustee an Officer’s Certificate, an Opinion of Counsel and (if required by the TIA or the Indenture Trustee) an Independent
Certificate from a firm of certified public accountants, each meeting the applicable requirements of Section 11.1(a) and, subject to Section 11.2, each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture have been complied with. 

  
 SECTION 4.2 Application of Trust Money. All moneys deposited with the Indenture Trustee pursuant to Section 4.1 hereof shall be held in trust and applied by it, in accordance with the provisions
of the Notes and this Indenture, to the payment, either directly or through any Paying Agent, as the Indenture Trustee may determine, to the Holders of the particular Notes for the payment or redemption of which such moneys have been deposited with
the Indenture Trustee, of all sums due and to become due thereon for principal and interest; but such moneys need not be segregated from other funds except to the extent required herein or in the Transfer and Servicing Agreement or required by law.

  
 SECTION 4.3 Repayment of Moneys Held by Paying
Agent. In connection with the satisfaction and discharge of this Indenture with respect to the Notes, all moneys then held by any Paying Agent other than the Indenture Trustee under the provisions of this Indenture with respect to such Notes
shall, upon demand of the Issuer, be paid to the Indenture Trustee to be held and applied according to Section 3.3 and thereupon such Paying Agent shall be released from all further liability with respect to such moneys. 
  

					
	 	 	21	 	E*Trade 2004-1 Indenture

 ARTICLE V. 
  

REMEDIES 
  
 SECTION 5.1 Events of Default. “Event of Default”, wherever used herein, means any one of the following events (whatever
the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental
body): 
  

	 	(i)	default in the payment of any interest on the Notes of the Controlling Class of Notes when the same becomes due and payable, and such default shall continue for a period of five
days after the related Payment Date; or 

  

	 	(ii)	default in the payment of any portion of the unpaid principal balance of any Class of Notes on the Stated Maturity Date of such Class of Notes; or 

  

	 	(iii)	(A) default in the observance or performance of any covenant or agreement of the Issuer made in this Indenture (other than a covenant or agreement, a default in the observance or
performance of which is elsewhere in this Section specifically dealt with), or (B) any representation or warranty of the Issuer made in this Indenture or in any certificate or other writing delivered pursuant hereto or in connection herewith proving
to have been incorrect in any material respect as of the time when the same shall have been made, and such default shall continue or not be cured in the case of Clause (A), or the circumstance or condition in respect of which such
representation or warranty was incorrect shall not have been eliminated or otherwise cured in the case of Clause B, for a period of 90 days, in the case of Clause (A) or 60 days, in the case of Clause (B), in each case after
there shall have been given, by registered or certified mail, to the Issuer by the Indenture Trustee (or to the Issuer and the Indenture Trustee by the Holders of Notes representing at least 25% of the Note Balance of the Notes then Outstanding) a
written notice specifying such default in the case of Clause (A) or incorrect representation or warranty in the case of Clause (B) and requiring it to be remedied and stating that such notice is a notice of Default hereunder; or

  

	 	(iv)	the filing of a decree or order for relief by a court having jurisdiction in the premises in respect of the Issuer or any substantial part of the Trust Estate in an involuntary case
under any applicable federal or state bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Issuer or for any substantial
part of the Trust Estate, or ordering the winding-up or liquidation of the Issuer’s affairs, and such decree or order shall remain unstayed and in effect for a period of 60 consecutive days; or 

  

					
	 	 	22	 	E*Trade 2004-1 Indenture

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

  
 The Issuer shall deliver to the Indenture Trustee, within five days after the occurrence thereof, written notice in the form of an Officer’s Certificate of any event which with the giving of notice and the lapse
of time would become an Event of Default, its status and what action the Issuer is taking or proposes to take with respect thereto. 
  
 SECTION 5.2 Acceleration of Maturity; Rescission and Annulment. If an Event of Default described in Section 5.1(i), (ii) or
(iii) should occur and be continuing, then and in every such case the Indenture Trustee or the Noteholders representing not less than a majority of the Note Balance of the Controlling Class of Notes may declare all of the Notes to be
immediately due and payable, by a notice in writing to the Issuer (and to the Indenture Trustee if given by Noteholders), and upon any such declaration the unpaid Note Balance of all of the Notes, together with accrued and unpaid interest thereon
through the date of acceleration, shall become immediately due and payable. If an Event of Default specified in Section 5.1(iv) or (v) occurs, the unpaid Note Balance of all the unpaid principal together with all accrued and unpaid
interest thereon shall automatically become immediately due and payable without any declaration or other act on the part of the Indenture Trustee or any Noteholder of the Controlling Class or otherwise. 
  
 At any time after such declaration of acceleration of maturity has been made
and before a judgment or decree for payment of the money due has been obtained by the Indenture Trustee as hereinafter provided for in this Article V, the Noteholders representing a majority of the Note Balance of the Controlling Class of
Notes, by written notice to the Issuer and the Indenture Trustee, may rescind and annul such declaration and its consequences if: 
  

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

  
 (A) all payments of principal of and interest on all Notes and all other amounts that would then be due hereunder or upon
such Notes if the Event of Default giving rise to such acceleration had not occurred; and 
  
 (B) all sums paid or advanced by the Indenture Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Indenture Trustee and its agents and counsel; and 
  

					
	 	 	23	 	E*Trade 2004-1 Indenture

	 	(ii)	all Events of Default, other than the nonpayment of the principal of the Notes that has become due solely by such acceleration, have been cured or waived as provided in Section
5.12. 

  
 No such rescission shall affect any subsequent default
or impair any right consequent thereto. 
  
 SECTION 5.3
Collection of Indebtedness and Suits for Enforcement by Indenture Trustee. 
  
 (a) The Issuer covenants that if (i) default is made in the payment of any interest on any Note of the Controlling Class when the same becomes due and payable, and such default continues for a period of five days, or
(ii) default is made in the payment of the principal of or any installment of the principal of any Note when the same becomes due and payable, the Issuer shall, upon demand of the Indenture Trustee, pay to it, for the benefit of the Holders of the
Notes, the whole amount then due and payable on such Notes for principal and interest, with interest on the overdue principal and, to the extent payment at such rate of interest shall be legally enforceable, on overdue installments of interest at
the rate borne by the Notes and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Indenture Trustee and
its agents and counsel. 
  
 (b) In case the Issuer shall fail
forthwith to pay such amounts upon such demand, the Indenture Trustee, in its own name and as trustee of an express trust, may institute a Proceeding for the collection of the sums so due and unpaid, and may prosecute such Proceeding to judgment or
final decree, and may enforce the same against the Issuer or other obligor upon such Notes and collect in the manner provided by law out of the property of the Issuer or other obligor upon such Notes, wherever situated, the moneys adjudged or
decreed to be payable. 
  
 (c) If an Event of Default occurs and
is continuing, the Indenture Trustee may, as more particularly provided in Section 5.4, in its discretion, proceed to protect and enforce its rights and the rights of the Noteholders, by such appropriate Proceedings as the Indenture Trustee
shall deem most effective to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy or
legal or equitable right vested in the Indenture Trustee by this Indenture or by law. 
  
 (d) In case there shall be pending, relative to the Issuer or any other obligor upon the Notes or any Person having or claiming an ownership interest in the Trust Estate, Proceedings under Title 11 of the United
States Code or any other applicable federal or state bankruptcy, insolvency or other similar law, or in case a receiver or trustee in bankruptcy or reorganization, or liquidator, sequestrator or similar official, shall have been appointed for or
taken possession of the Issuer or its property or such other obligor or Person, or in case of any other comparable judicial Proceedings relative to the Issuer or other obligor upon the Notes or to the creditors or property of the Issuer or such
other obligor, the Indenture Trustee, irrespective of whether the principal of any Notes shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Indenture Trustee shall have made any demand

  

					
	 	 	24	 	E*Trade 2004-1 Indenture

 
pursuant to the provisions of this Section, shall be entitled and empowered, by intervention in such Proceedings or otherwise: 
  

	 	(i)	to file and prove a claim or claims for the whole amount of principal and interest owing and unpaid in respect of the Notes and to file such other papers or documents as may be
necessary or advisable in order to have the claims of the Indenture Trustee (including any claim for reasonable compensation to the Indenture Trustee and each predecessor Indenture Trustee, and their respective agents, attorneys and counsel, and for
reimbursement of all expenses and liabilities incurred, and all advances made, by the Indenture Trustee and each predecessor Indenture Trustee, except as a result of negligence, bad faith or willful misconduct) and of the Noteholders allowed in such
Proceedings; 

  

	 	(ii)	unless prohibited by applicable law and regulations, to vote on behalf of the Holders of Notes in any election of a trustee, a standby trustee or Person performing similar functions
in any such Proceedings; 

  

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

  

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

  
 and any trustee, receiver, liquidator, sequestrator or similar official in any such Proceeding is hereby authorized by each of such Noteholders to make payments to the Indenture Trustee and, in the event that the Indenture Trustee shall
consent to the making of payments directly to such Noteholders, to pay to the Indenture Trustee such amounts as shall be sufficient to cover reasonable compensation to the Indenture Trustee, each predecessor Indenture Trustee and their respective
agents, attorneys and counsel, and all other expenses and liabilities incurred, and all advances made, by the Indenture Trustee and each predecessor Indenture Trustee except as a result of negligence, bad faith or willful misconduct. 
  
 (e) Nothing herein contained shall be deemed to authorize the Indenture
Trustee to authorize or consent to or vote for or accept or adopt on behalf of any Noteholder any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any Holder thereof or to authorize the Indenture
Trustee to vote in respect of the claim of any Noteholder in any such proceeding except as contemplated by clause (d)(ii) above. 
  
 (f) All rights of action and of asserting claims under this Indenture, or under any of the Notes, may be enforced by the Indenture Trustee without the
possession of any of the Notes or the production thereof in any trial or other Proceedings relative thereto, and any such action or Proceedings instituted by the Indenture Trustee shall be brought in its own name as trustee of an 

  

					
	 	 	25	 	E*Trade 2004-1 Indenture

 
express trust, and any recovery of judgment, subject to the payment of the expenses, liabilities, disbursements and compensation of the Indenture Trustee,
each predecessor Indenture Trustee and their respective agents and attorneys, shall be for the ratable benefit of the Holders of the Notes. 
  
 (g) In any Proceedings brought by the Indenture Trustee (and also any Proceedings involving the interpretation of any provision of this Indenture to which
the Indenture Trustee shall be a party), the Indenture Trustee shall be held to represent all the Holders of the Notes, and it shall not be necessary to make any Noteholder a party to any such Proceedings. 
  
 SECTION 5.4 Remedies; Priorities. (a) If an Event of Default
shall have occurred and be continuing, the Indenture Trustee may do one or more of the following (subject to Section 5.5): 
  

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

  

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

  

	 	(iii)	exercise any remedies of a secured party under the UCC and take any other appropriate action to protect and enforce the rights and remedies of the Indenture Trustee and the Holders
of the Notes; and 

  

	 	(iv)	sell the Trust Estate or any portion thereof or rights or interest therein, at one or more public or private sales called and conducted in any manner permitted by law;

  
 provided, however, that the Indenture Trustee may not
sell or otherwise liquidate the Trust Estate following an Event of Default, other than an Event of Default described in Section 5.01(i) or (ii), unless (A) the Holders of 100% of the Note Balance of all of the Notes then Outstanding
have consented to such sale or liquidation, (B) the proceeds of such sale or liquidation are sufficient to pay in full the principal of and the accrued interest on all of the Notes then Outstanding or (C) the Collections on the Receivables will not
be sufficient on an ongoing basis to make all payments on all of the Notes as such payments would have become due if the Notes had not been declared due and payable; and the Indenture Trustee obtains the consent of the Holders of at least 66-2/3% of
the Note Balance of all of the Notes then Outstanding. In determining such sufficiency or insufficiency with respect to clauses (B) and (C) of the preceding sentence, the Indenture Trustee may, but need not, obtain and conclusively
rely upon an opinion of an Independent investment banking or accounting firm of national reputation as to the feasibility of such proposed action and as to the sufficiency of the Trust Estate for such purpose. 
  
 (b) If the Indenture Trustee collects any money or property pursuant to this
Article V, it shall pay out the money or property on each Payment Date in accordance with Section 8.2(g) or Section 8.2(h), as applicable. 
  

					
	 	 	26	 	E*Trade 2004-1 Indenture

 The Indenture Trustee may fix a record date and payment date (which shall be a Payment Date) for any payment to
Noteholders pursuant to this Section. At least 15 days before such record date, the Issuer shall mail to each Noteholder and the Indenture Trustee a notice that states the record date, the payment date and the amount to be paid. 
  
 SECTION 5.5 Optional Preservation of the Trust Estate. If the
Notes have been declared to be or are automatically due and payable under Section 5.2 following an Event of Default and such declaration or automatic occurrence and its consequences have not been rescinded and annulled, the Indenture Trustee
may, but need not, elect to maintain possession of the Trust Estate. It is the desire of the parties hereto and the Noteholders that there be at all times sufficient funds for the payment of principal of and interest on the Notes, and the Indenture
Trustee shall take such desire into account when determining whether or not to maintain possession of the Trust Estate. In determining whether to maintain possession of the Trust Estate, the Indenture Trustee may, but need not, obtain at the
Issuer’s expense and conclusively rely upon an opinion of an Independent investment banking or accounting firm of national reputation as to the feasibility of such proposed action and as to the sufficiency of the Trust Estate for such purpose.

  
 SECTION 5.6 Limitation of Suits. Subject to
Section 7.5, no Holder of any Note shall have any right to institute any Proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless:

  

	 	(i)	such Holder has previously given written notice to the Indenture Trustee of a continuing Event of Default; 

  

	 	(ii)	the Holders of Notes representing not less than 25% of the Note Balance of the Notes then Outstanding, have made written request to the Indenture Trustee to institute such
Proceeding in respect of such Event of Default in its own name as Indenture Trustee hereunder; 

  

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

  

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

  

	 	(v)	no direction inconsistent with such written request has been given to the Indenture Trustee during such 60-day period by the Noteholders with respect to a majority of the Note
Balance of all Notes that are Outstanding. 

  
 It is understood and
intended that no one or more Holders of Notes shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other Holders of Notes or to obtain or to
seek to obtain priority or preference over any other Holders or to enforce any right under this Indenture, except to the extent and in the manner herein provided. 
  

					
	 	 	27	 	E*Trade 2004-1 Indenture

 In the event the Indenture Trustee shall receive conflicting or inconsistent requests and indemnity from
two or more groups of Holders of Notes, each representing less than a majority of the Note Balance of the Notes, the Indenture Trustee in its sole discretion may determine what action, if any, shall be taken, notwithstanding any other provisions of
this Indenture. 
  
 SECTION 5.7 Unconditional Rights of
Noteholders To Receive Principal and Interest. Notwithstanding any other provisions in this Indenture, the right of any Noteholder, which is absolute and unconditional, to receive payment of the principal of and interest, if any, on such Notes
on or after the respective due dates thereof expressed in such Note or in this Indenture (or, in the case of redemption, on or after the Redemption Date) or to institute suit for the enforcement of any such payment on or after such respective date,
and such right shall not be impaired without the consent of such Holder. 
  
 SECTION 5.8 Restoration of Rights and Remedies. If the Indenture Trustee or any Noteholder has instituted any Proceeding to enforce any right or remedy under this Indenture and such Proceeding has been
discontinued or abandoned for any reason or has been determined adversely to the Indenture Trustee or to such Noteholder, then and in every such case the Issuer, the Indenture Trustee and the Noteholders shall, subject to any determination in such
Proceeding, be restored severally and respectively to their former positions hereunder, and thereafter all rights and remedies of the Indenture Trustee and the Noteholders shall continue as though no such Proceeding had been instituted. 

 
 SECTION 5.9 Rights and Remedies Cumulative. No right or
remedy herein conferred upon or reserved to the Indenture Trustee or to the Noteholders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy. 
  
 SECTION 5.10
Delay or Omission Not a Waiver. No delay or omission of the Indenture Trustee or any Holder of any Note to exercise any right or remedy accruing upon any Default or Event of Default shall impair any such right or remedy or constitute a
waiver of any such Default or Event of Default or an acquiescence therein. Every right and remedy given by this Article V or by law to the Indenture Trustee or to the Noteholders may be exercised from time to time, and as often as may be deemed
expedient, by the Indenture Trustee or by the Noteholders, as the case may be. 
  
 SECTION 5.11 Control by Noteholders. Subject to Sections 5.16(b) and 6.2(f), the Holders of a majority of the Note Balance of the Controlling Class of Notes shall have the right to direct
the time, method and place of conducting any Proceeding for any remedy available to the Indenture Trustee with respect to the Notes or with respect to the exercise of any trust or power conferred on the Indenture Trustee; provided that:

  

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

  

					
	 	 	28	 	E*Trade 2004-1 Indenture

	 	(ii)	subject to the express terms of Section 5.4, any direction to the Indenture Trustee to sell or liquidate the Trust Estate shall be by Holders of the Controlling Class of
Notes representing not less than 100% of the Note Balance of such Controlling Class Notes then Outstanding; 

  

	 	(iii)	if the conditions set forth in Section 5.5 have been satisfied and the Indenture Trustee elects to retain the Trust Estate pursuant to such Section, then any direction to the
Indenture Trustee by holders of the Controlling Class of Notes representing less than 100% of the Note Balance of such Notes to sell or liquidate the Trust Estate shall be of no force and effect; and 

  

	 	(iv)	the Indenture Trustee may take any other action deemed proper by the Indenture Trustee that is not inconsistent with such direction, applicable law and the terms of this Indenture.

  
 Notwithstanding the rights of Noteholders set forth in this
Section, subject to Section 6.1, the Indenture Trustee need not take any action that it determines might involve it in personal liability or might materially adversely affect the rights of any Noteholders not consenting to such action.

  
 SECTION 5.12 Waiver of Past Defaults. Prior to
the declaration of the acceleration of the maturity of the Notes as provided in Section 5.2, the Holders of Notes of not less than a majority of the Note Balance of the Controlling Class may waive any past Default or Event of Default and its
consequences except a Default (a) in payment of principal of or interest on any of the Notes, (b) in respect of a covenant or provision hereof which cannot be modified or amended without the consent of each Noteholder or (c) arising from a
Insolvency Event with respect to the Issuer which, in the case of clause (a) or (b), can only be waived with the consent of all the Holders of Notes then Outstanding and, in the case of clause (c), cannot be waived. In the case
of any such waiver, the Issuer, the Indenture Trustee and the Noteholders shall be restored to their former positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or other Default or impair any right
consequent thereto. 
  
 Upon any such waiver, such Event of
Default shall cease to exist and be deemed to have been cured and not to have occurred, and any Event of Default arising therefrom shall be deemed to have been cured and not to have occurred, for every purpose of this Indenture; but no such waiver
shall extend to any prior, subsequent or other Default or Event of Default or impair any right consequent thereto. 
  
 SECTION 5.13 Undertaking for Costs. All parties to this Indenture agree, and each Holder of a Note by such Holder’s acceptance thereof
shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Indenture Trustee for any action taken, suffered or omitted by it
as Indenture Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party
litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to (a) any suit instituted by the 

  

					
	 	 	29	 	E*Trade 2004-1 Indenture

 
Indenture Trustee, (b) any suit instituted by any Noteholder, or group of Noteholders, in each case holding in the aggregate Notes representing more than 10%
of the Note Balance of the Notes then Outstanding or (c) any suit instituted by any Noteholder for the enforcement of the payment of principal of or interest on any Note on or after the respective due dates expressed in such Note and in this
Indenture (or, in the case of redemption, on or after the Redemption Date). 
  
 SECTION 5.14 Waiver of Stay or Extension Laws. The Issuer covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, or plead or in any manner whatsoever, claim or
take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, that may affect the covenants or the performance of this Indenture; and the Issuer (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and covenants that it shall not hinder, delay or impede the execution of any power herein granted to the Indenture Trustee, but shall suffer and permit the execution of every such power as
though no such law had been enacted. 
  
 SECTION 5.15
Action on Notes. The Indenture Trustee’s right to seek and recover judgment on the Notes or under this Indenture shall not be affected by the seeking, obtaining or application of any other relief under or with respect to this
Indenture. Neither the lien of this Indenture nor any rights or remedies of the Indenture Trustee or the Noteholders shall be impaired by the recovery of any judgment by the Indenture Trustee against the Issuer or by the levy of any execution under
such judgment upon any portion of the Trust Estate or upon any of the assets of the Issuer. Any money or property collected by the Indenture Trustee shall be applied in accordance with Section 5.4(b). 
  
 SECTION 5.16 Performance and Enforcement of Certain
Obligations. 
  
 (a) If an Event of Default has occurred and
is continuing, promptly following a request from the Indenture Trustee to do so, the Issuer shall take all such lawful action as the Indenture Trustee may request to compel or secure the performance and observance by any party to the Transfer and
Servicing Agreement, of each of such party’s obligations to the Issuer under or in connection with the Transfer and Servicing Agreement, and to exercise any and all rights, remedies, powers and privileges lawfully available to the Issuer under
or in connection with the Transfer and Servicing Agreement to the extent and in the manner directed by the Indenture Trustee, including the transmission of notices of default on the part of any party to the Transfer and Servicing Agreement and the
institution of legal or administrative actions or proceedings to compel or secure performance by any party to the Transfer and Servicing Agreement of such party’s obligations under the Transfer and Servicing Agreement. 
  
 (b) If an Event of Default has occurred and is continuing, the Indenture
Trustee may, and at the direction (which direction shall be in writing) of the Holders of the Controlling Class of Notes representing at least 66 2/3% of the Note Balance of such Controlling Class of Notes then Outstanding shall, subject to the
proviso and last sentence of Section 5.11, exercise all rights, remedies, powers, privileges and claims of the Issuer against any party to any of the Basic Documents under or in connection with any of the Basic Documents, including the
right or power to take any action to compel or secure performance or observance by any party to any of the Basic Documents of such party’s obligations to the Issuer thereunder and to give any consent, 

  

					
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request, notice, direction, approval, extension or waiver under any of the Basic Documents, and any right of the Issuer to take such action shall be
suspended. 
  
 ARTICLE VI. 
  
 THE INDENTURE TRUSTEE 
  
 SECTION 6.1 Duties of Indenture Trustee. 
  
 (a) If an Event of Default has occurred and is continuing, the Indenture
Trustee shall exercise the rights and powers vested in it by this Indenture and shall use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in the conduct of such person’s own
affairs. 
  
 (b) Except during the continuance of an Event of
Default: 
  

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

  

	 	(ii)	in the absence of bad faith on its part, the Indenture Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Indenture Trustee and conforming to the requirements of this Indenture or the Transfer and Servicing Agreement; provided, however, the Indenture Trustee shall examine the certificates and
opinions to determine whether or not they conform to the requirements of this Indenture. 

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

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

  

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

  

	 	(iii)	the Indenture Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it hereunder.

  
 (d) Every provision of this Indenture and the
Transfer and Servicing Agreement that in any way relates to the Indenture Trustee is subject to paragraphs (a), (b), (c) and (g) of this Section. 
  
 (e) The Indenture Trustee shall not be liable for interest on any money received by it. 
  

					
	 	 	31	 	E*Trade 2004-1 Indenture

 (f) Money held in trust by the Indenture Trustee need not be segregated from other funds except to the
extent required by law or the terms of this Indenture or the Transfer and Servicing Agreement. 
  
 (g) No provision of this Indenture or the Transfer and Servicing Agreement shall require the Indenture Trustee to expend or risk its own funds or otherwise incur liability, financial or otherwise, in the performance
of any of its duties hereunder or thereunder or in the exercise of any of its rights or powers, if it shall have reasonable grounds to believe that repayment of such funds or indemnity reasonably satisfactory to it against such risk or liability is
not reasonably assured to it. 
  
 (h) Every provision of this
Indenture or the Transfer and Servicing Agreement relating to the conduct or affecting the liability of or affording protection to the Indenture Trustee shall be subject to the provisions of this Section and to the provisions of the TIA. 

 
 SECTION 6.2 Rights of Indenture Trustee. 
  
 (a) The Indenture Trustee may conclusively rely on any document believed by
it to be genuine and to have been signed or presented by the proper person. The Indenture Trustee need not investigate any fact or matter stated in the document. 
  
 (b) Before the Indenture Trustee acts or refrains from acting, it may require an Officer’s Certificate or an Opinion of
Counsel. The Indenture Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such Officer’s Certificate or Opinion of Counsel. 
  
 (c) The Indenture Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly
or by or through agents or attorneys or a custodian or nominee, and the Indenture Trustee shall not be responsible for any misconduct or negligence on the part of, or for the supervision of, any such agent, attorney, custodian or nominee appointed
with due care by it hereunder. 
  
 (d) The Indenture Trustee shall
not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers; provided, however, that the Indenture Trustee’s conduct does not constitute willful
misconduct, negligence or bad faith. 
  
 (e) The Indenture Trustee
may consult with counsel, and the advice or opinion of counsel with respect to legal matters relating to this Indenture and the Notes shall be full and complete authorization and protection from liability in respect to any action taken, omitted or
suffered by it hereunder in good faith and in accordance with the advice or opinion of such counsel. 
  
 (f) The Indenture Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction
of any of the Noteholders pursuant to this Indenture, unless such Noteholders shall have offered to the Indenture Trustee security or indemnity reasonably satisfactory to it against the costs, expenses and liabilities which might be incurred by it
in compliance with such request or direction. 
  

					
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 (g) The Indenture Trustee shall not be charged with knowledge of any Default, Event of Default or
Servicer Default unless (i) a Responsible Officer of the Indenture Trustee assigned to its Corporate Trust Office shall have actual knowledge thereof or (ii) written notice thereof shall have been given to the Indenture Trustee by the Issuer, the
Depositor, the Servicer or any Noteholder. 
  
 (h) The Indenture
Trustee in each of its capacities hereunder shall be afforded the rights, protections, immunities and indemnities set forth in this Article VI. 
  
 (i) Anything in this Indenture to the contrary notwithstanding, in no event shall the Indenture Trustee be liable for special, indirect or consequential
loss or damage of any kind whatsoever (including but not limited to lost profits) even if the Indenture Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action. 
  
 SECTION 6.3 Individual Rights of Indenture Trustee. Subject to
Section 310 of the TIA, the Indenture Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Issuer, the Depositor, Transferor, the Servicer or their respective Affiliates with the
same rights it would have if it were not Indenture Trustee. Any Paying Agent, Note Registrar, co-registrar, co-paying agent, co-trustee or separate trustee may do the same with like rights. However, the Indenture Trustee must comply with Sections
6.11 and 6.12. 
  
 SECTION 6.4 Indenture
Trustee’s Disclaimer. The Indenture Trustee shall not be responsible for and makes no representation as to the validity or adequacy of this Indenture, the Collateral or the Notes, it shall not be accountable for the Issuer’s use of the
proceeds from the Notes, and it shall not be responsible for any statement of the Issuer in this Indenture or in any document issued in connection with the sale of the Notes or in the Notes other than the Indenture Trustee’s certificate of
authentication. The Indenture Trustee shall have no responsibility for reviewing the contents of the Receivable Files or for maintaining custody of or protecting same, for monitoring the servicing of the Receivables by the Servicer or for perfecting
or continuing the perfection of the Indenture Trustee’s security interest in the Collateral, including the filing, re-filing, recording or re-recording of any notice, instrument or document in any public office at any time or times. The
Indenture 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 the Transfer and Servicing Agreement. 
  
 SECTION 6.5 Notice of Events. If a Default occurs and is
continuing and if it is known to a Responsible Officer of the Indenture Trustee, the Indenture Trustee shall mail to each Noteholder notice of the Default within 90 days after it occurs. Except in the case of a Default in payment of principal of or
interest on any Note (including payments pursuant to the redemption provisions of such Note), the Indenture Trustee may withhold the notice if and so long as a committee of its Responsible Officers in good faith determines that withholding the
notice is in the interests of Noteholders. 
  
 SECTION 6.6
Reports by Indenture Trustee to Holders. The Indenture Trustee shall deliver to each Noteholder who was a Noteholder during the applicable year, not later than the latest date permitted by law, such information as may be requested to
enable such holder to 

  

					
	 	 	33	 	E*Trade 2004-1 Indenture

 
prepare its federal and state income tax returns, provided, that, such information shall consist only of Form 1099s or any successor forms required to
be given by Paying Agents to Noteholders pursuant to the Code. 
  
 SECTION 6.7 Compensation and Indemnity. The Issuer shall pay to the Indenture Trustee from time to time reasonable compensation for its services as agreed to in writing. The Indenture Trustee’s compensation shall not be
limited by any law on compensation of a trustee of an express trust. The Issuer shall reimburse the Indenture Trustee for all reasonable out-of-pocket expenses incurred or made by it, including costs of collection, in addition to the compensation
for its services. Such expenses shall include the reasonable compensation and expenses, disbursements and advances of the Indenture Trustee’s agents, counsel, accountants and experts. The Issuer shall indemnify the Indenture Trustee against any
and all loss, liability or expense (including attorneys’ fees and expenses) incurred by it in connection with the administration of this trust and the performance of its duties hereunder and under the other Basic Documents. The Indenture
Trustee shall notify the Issuer promptly of any claim for which it may seek indemnity. Failure by the Indenture Trustee to so notify the Issuer shall not relieve the Issuer of its obligations hereunder. The Issuer shall defend any such claim, and
the Indenture Trustee may have separate counsel and the Issuer shall pay the fees and expenses of such counsel. The Issuer need not reimburse any expense or indemnify against any loss, liability or expense incurred by the Indenture Trustee through
the Indenture Trustee’s own willful misconduct, negligence or bad faith. 
  
 The Issuer’s payment obligations to the Indenture Trustee pursuant to this Section shall survive the discharge of this Indenture and the resignation or removal of the Indenture Trustee. Without prejudice to any
other rights available to the Indenture Trustee under applicable law, when the Indenture Trustee incurs expenses after the occurrence of a Default specified in Section 5.1(iv) or (v) with respect to the Issuer, the expenses are
intended to constitute expenses of administration under Title 11 of the United States Code or any other applicable federal or state bankruptcy, insolvency or similar law. 
  
 SECTION 6.8 Replacement of Indenture Trustee. (a) No resignation or removal of the Indenture Trustee and no
appointment of a successor Indenture Trustee shall become effective until the acceptance of appointment by the successor Indenture Trustee pursuant to this Section 6.8. The Indenture Trustee may resign at any time by so notifying the Issuer.
The Indenture Trustee shall give each of the Rating Agencies notice of its resignation promptly following such resignation. The holders of a majority of the Controlling Class of Notes may remove the Indenture Trustee by so notifying the Indenture
Trustee and may appoint a successor Indenture Trustee. The Issuer shall remove the Indenture Trustee if: 
  

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

  

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

  

	 	(iii)	a receiver or other public officer takes charge of the Indenture Trustee or its property; or 

  

	 	(iv)	the Indenture Trustee otherwise becomes incapable of acting. 

  

					
	 	 	34	 	E*Trade 2004-1 Indenture

 (b) The Servicer may remove the Indenture Trustee at any time and from time to time by giving written
notice of such removal to the Indenture Trustee if any of the following events or circumstances occurs at any time (such notice to be sent at least thirty days prior to the date of removal in the case of clause (v) below): 
  

	 	(i)	the Indenture Trustee shall be legally unable to act; or 

  

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

  

	 	(iii)	a receiver of the Indenture Trustee or of its property shall be appointed; or 

  

	 	(iv)	any public officer shall take charge or control of the Indenture Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation; or

  

	 	(v)	the Indenture Trustee shall fail to perform, as determined by the Servicer in its sole discretion, any of the Indenture Trustee’s duties or responsibilities under this
Agreement or any Supplement in a manner and at a cost that is satisfactory to the Servicer. 

  
 If the Indenture Trustee resigns or is removed by the Issuer, the Servicer or by the holders of a majority of the Controlling Class of Notes (and the
holders of a majority of the Controlling Class of Notes shall not have appointed a successor Indenture Trustee and such successor Indenture Trustee shall not have accepted its appointment as set forth below within 30 days after the Indenture Trustee
shall have been removed by the holders of a majority of the Controlling Class of Notes), or if a vacancy exists in the office of Indenture Trustee for any reason (the Indenture Trustee in the event of any such resignation, removal or vacancy being
referred to herein as the retiring Indenture Trustee), the Issuer shall promptly appoint a successor Indenture Trustee. 
  
 A successor Indenture Trustee shall deliver a written acceptance of its appointment to the retiring Indenture Trustee and to the Issuer. Thereupon the
resignation or removal of the retiring Indenture Trustee shall become effective, and the successor Indenture Trustee shall have all the rights, powers and duties of the Indenture Trustee under this Indenture. The successor Indenture Trustee shall
mail a notice of its succession to Noteholders. The retiring Indenture Trustee shall promptly, upon payment of its charges, transfer all property held by it as Indenture Trustee to the successor Indenture Trustee 
  
 If a successor Indenture Trustee does not take office within 60 days after
the retiring Indenture Trustee resigns or is removed, the retiring Indenture Trustee, the Issuer or the holders of a majority of the Note Balance of the Controlling Class of Notes may petition any court of competent jurisdiction for the appointment
of a successor Indenture Trustee. 
  
 If the Indenture Trustee
fails to comply with Section 6.11, any Noteholder may petition any court of competent jurisdiction for the removal of the Indenture Trustee and the appointment of a successor Indenture Trustee. 
  

					
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 Notwithstanding the replacement of the Indenture Trustee pursuant to this Section, the Issuer’s
obligations under Section 6.7 shall continue for the benefit of the retiring Indenture Trustee. 
  
 SECTION 6.9 Successor Indenture Trustee by Merger. If the Indenture Trustee consolidates with, merges or converts into, or transfers all or
substantially all its corporate trust business or assets to, another corporation or banking association, the resulting, surviving or transferee corporation without any further act shall be the successor Indenture Trustee; provided, that such
corporation or banking association shall be otherwise qualified and eligible under Section 6.11. The Indenture Trustee shall provide the Rating Agencies prior written notice of any such transaction. Such notice shall be deemed given if a
description of such transaction is published in a newspaper of general circulation in The City of New York. 
  
 In case at the time such successor or successors by merger, conversion or consolidation to the Indenture Trustee shall succeed to the trusts created by
this Indenture any of the Notes shall have been authenticated but not delivered, any such successor to the Indenture Trustee may adopt the certificate of authentication of any predecessor trustee and deliver such Notes so authenticated; and in case
at that time any of the Notes shall not have been authenticated, any successor to the Indenture Trustee may authenticate such Notes either in the name of any predecessor hereunder or in the name of the successor to the Indenture Trustee; and in all
such cases such certificates shall have the full force which it is anywhere in the Notes or in this Indenture provided that the certificate of the Indenture Trustee shall have. 
  
 SECTION 6.10 Appointment of Co-Indenture Trustee or Separate Indenture Trustee. 
  
 (a) Notwithstanding any other provisions of this Indenture, at any time, for
the purpose of meeting any legal requirement of any jurisdiction in which any part of the Trust Estate may at the time be located, the Indenture Trustee shall have the power and may execute and deliver all instruments to appoint one or more Persons
to act as a co-trustee or co-trustees, or separate trustee or separate trustees, of all or any part of the Trust Estate, and to vest in such Person or Persons, in such capacity and for the benefit of the Noteholders, such title to the Trust Estate,
or any part hereof, and, subject to the other provisions of this Section, such powers, duties, obligations, rights and trusts as the Indenture Trustee may consider necessary or desirable. No co-trustee or separate trustee hereunder shall be required
to meet the terms of eligibility as a successor trustee under Section 6.11 and no notice to Noteholders of the appointment of any co-trustee or separate trustee shall be required under Section 6.8 hereof. 
  
 (b) Every separate trustee and co-trustee shall, to the extent permitted by
law, be appointed and act subject to the following provisions and conditions: 
  

	 	(i)	 all rights, powers, duties and obligations conferred or imposed upon the Indenture Trustee shall be conferred or imposed upon and exercised or performed by the
Indenture Trustee and such separate trustee or co-trustee jointly (it being understood that such separate trustee or co-trustee is not authorized to act separately without the Indenture Trustee joining in such act), except to the extent that under
any law of any jurisdiction in which 

  

					
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any particular act or acts are to be performed the Indenture Trustee shall be incompetent or unqualified to perform such act or acts, in which event such
rights, powers, duties and obligations (including the holding of title to the Trust Estate or any portion thereof in any such jurisdiction) shall be exercised and performed singly by such separate trustee or co-trustee, but solely at the direction
of the Indenture Trustee; 

  

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

  

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

  
 (c) Any notice, request or other writing given to the Indenture Trustee shall
be deemed to have been given to each of the then separate trustees and co-trustees, as effectively as if given to each of them. Every instrument appointing any separate trustee or co-trustee shall refer to this Indenture and the conditions of this
Article VI. Each separate trustee and co-trustee, upon its acceptance of the trusts conferred, shall be vested with the estates or property specified in its instrument of appointment, either jointly with the Indenture Trustee or separately,
as may be provided therein, subject to all the provisions of this Indenture, specifically including every provision of this Indenture relating to the conduct of, affecting the liability of, or affording protection to, the Indenture Trustee. Every
such instrument shall be filed with the Indenture Trustee. 
  
 (d)
Any separate trustee or co-trustee may at any time constitute the Indenture Trustee as its agent or attorney-in-fact with full power and authority, to the extent not prohibited by law, to do any lawful act under or in respect of this Indenture on
its behalf and in its name. If any separate trustee or co-trustee shall die, become incapable of acting, resign or be removed, all of its estates, properties, rights, remedies and trusts shall vest in and be exercised by the Indenture Trustee, to
the extent permitted by law, without the appointment of a new or successor trustee. 
  
 SECTION 6.11 Eligibility; Disqualification. (a) The Indenture Trustee shall at all times satisfy the requirements of TIA Section 310(a). The Indenture Trustee shall have a combined capital and surplus of
at least $50,000,000 as set forth in its most recent published annual report of condition, and the time deposits of the Indenture Trustee shall be rated at least A-1 by Standard & Poor’s and P-1 by Moody’s. The Indenture Trustee shall
comply with TIA Section 310(b), subject to the penultimate paragraph thereof; provided, however, that there shall be excluded from the operation of TIA Section 310(b)(1) any indenture or indentures under which other securities of the
Issuer are outstanding if the requirements for such exclusion set forth in TIA Section 310(b)(1) are met. 
  
 (b) Within ninety (90) days after ascertaining the occurrence of an Event of Default which shall not have been cured or waived, unless authorized by the
TIA or the Commission, the Indenture Trustee shall resign with respect to the Class A Notes, the Class B Notes the Class C Notes, the Class D Notes and the Class E Notes in accordance with Section 6.8 of this Indenture, and the Issuer shall
appoint a successor Indenture Trustee for two or all of such Classes, as 

  

					
	 	 	37	 	E*Trade 2004-1 Indenture

 
applicable, so that there will be separate Indenture Trustees for the Class A Notes, the Class B Notes, the Class C Notes, the Class D Notes and the Class E
Notes. In the event the Indenture Trustee fails to comply with the terms of the preceding sentence, the Indenture Trustee shall comply with clauses (ii) and (iii) of TIA Section 310(b). 
  
 (c) In the case of the appointment hereunder of a successor Indenture Trustee with respect to any Class of Notes pursuant to
this Section 6.11, Issuer, the retiring Indenture Trustee and the successor Indenture Trustee with respect to such Class of Notes shall execute and deliver an indenture supplemental hereto wherein each successor Indenture Trustee shall accept
such appointment and which (i) shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, the successor Indenture Trustee all the rights, powers, trusts and duties of the retiring Indenture Trustee
with respect to the Notes of the Class to which the appointment of such successor Indenture Trustee relates, (ii) if the retiring Indenture Trustee is not retiring with respect to all Classes of Notes, shall contain such provisions as shall be
deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring Indenture Trustee with respect to the Notes of each Class as to which the retiring Indenture Trustee is not retiring shall continue to be vested
in the Indenture Trustee and (iii) shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Indenture Trustee, it being understood
that nothing herein or in such supplemental indenture shall constitute such Indenture Trustees co-trustees of the same trust and that each such Indenture Trustee shall be a trustee of a trust or trusts hereunder separate and apart from any trust or
trusts hereunder administered by any other such Indenture Trustee; and upon the removal of the retiring Indenture Trustee shall become effective to the extent provided herein. 
  
 SECTION 6.12 Preferential Collection of Claims Against Issuer. The Indenture Trustee shall comply with TIA
Section 311(a), excluding any creditor relationship listed in TIA Section 311(b). An Indenture Trustee who has resigned or been removed shall be subject to TIA Section 311(a) to the extent indicated. 
  
 SECTION 6.13 Representations and Warranties. The Indenture
Trustee hereby represents and warrants to the Issuer, for the benefit of the Noteholders, that: 
  
 (a) The Indenture Trustee is a national banking association duly organized and validly existing in good standing under the Federal law of the United
States. The Indenture Trustee has all requisite corporate power and authority to execute, deliver and perform its obligations under this Indenture and each other Basic Document to which it is a party. 
  
 (b) The Indenture Trustee has taken all action necessary to authorize the
execution and delivery by it of this Indenture and each of the other Basic Documents to which it is a party, and this Indenture and each of the other Basic Documents to which it is a party has been executed and delivered by one of its officers who
is duly authorized to execute and deliver this Indenture and each of the other Basic Documents to which it is a party on its behalf. 
  
 (c) This Indenture and each of the other Basic Documents to which it is a party constitutes a legal, valid and binding obligation of the Indenture
Trustee, enforceable against the Indenture Trustee in accordance with its respective terms, subject, as to enforceability, to 

  

					
	 	 	38	 	E*Trade 2004-1 Indenture

 
applicable insolvency, reorganization, conservatorship, receivership, liquidation and other similar laws affecting enforcement of the rights of creditors of
banks generally and to equitable limitations on the availability of specific remedies. 
  
 ARTICLE VII. 
  
 NOTEHOLDERS’ LISTS AND REPORTS 
  
 SECTION
7.1 Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders. The Issuer shall furnish or cause to be furnished to the Indenture Trustee (a) not more than five days after each Record Date, a list, in such form as the
Indenture Trustee may reasonably require, of the names and addresses of the Holders of Notes as of such Record Date, and (b) at such other times as the Indenture Trustee may request in writing, within 30 days after receipt by the Issuer of any such
request, a list of similar form and content as of a date not more than 10 days prior to the time such list is furnished; provided, however, that so long as the Indenture Trustee is the Note Registrar, no such list shall be required to
be furnished. 
  
 SECTION 7.2 Preservation of
Information; Communications to Noteholders. 
  
 (a) The
Indenture Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of the Holders of Notes contained in the most recent list furnished to the Indenture Trustee as provided in Section 7.1 and the names
and addresses of Holders of Notes received by the Indenture Trustee in its capacity as Note Registrar. The Indenture Trustee may destroy any list furnished to it as provided in such Section 7.1 upon receipt of a new list so furnished.

  
 (b) Noteholders may communicate pursuant to TIA Section 312(b)
with other Noteholders with respect to their rights under this Indenture or under the Notes. 
  
 (c) The Issuer, the Indenture Trustee and the Note Registrar shall have the protection of TIA Section 312(c). 
  
 SECTION 7.3 Reports by Issuer. 
  
 (a) The Issuer shall: 
  

	 	(i)	file with the Indenture Trustee, within 15 days after the Issuer is required to file the same with the Commission, copies of the annual reports and of the information, documents and
other reports (or copies of such portions of any of the foregoing as the Commission may from time to time by rules and regulations prescribe) that the Issuer may be required to file with the Commission pursuant to Section 13 or 15(d) of the Exchange
Act; 

  

	 	(ii)	 file with the Indenture Trustee and the Commission in accordance with rules and regulations prescribed from time to time by the Commission such additional
information, documents and reports with respect to compliance by the Issuer with the conditions and covenants of this 

  

					
	 	 	39	 	E*Trade 2004-1 Indenture

	 	 
Indenture as may be required from time to time by such rules and regulations; and 

  

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

  
 (b) Unless the Issuer otherwise determines, the fiscal year of the Issuer
shall end on December 31 of each year. 
  
 SECTION 7.4
Reports by Indenture Trustee. If required by TIA Section 313(a), within 60 days after each July 15th beginning with July, 15, 2005, the Indenture Trustee shall mail to each Noteholder as required by TIA Section 313(c) a brief report dated
as of such date that complies with TIA Section 313(a). The Indenture Trustee also shall comply with TIA Section 313(b). 
  
 A copy of each report at the time of its mailing to Noteholders shall be filed by the Indenture Trustee with the Commission and each stock exchange, if
any, on which the Notes are listed. The Issuer shall notify the Indenture Trustee if and when the Notes are listed on any stock exchange. 
  
 If a written request shall be furnished by three of more Noteholders to the Indenture Trustee, the Indenture Trustee shall grant access to the list of all
Noteholders maintained by such Indenture Trustee to such requesting Noteholders for the purpose of communicating with other Noteholders with respect to their rights under the Indenture or under such Notes. The Indenture Trustee may elect not to
afford the requesting Noteholders access to the list of Noteholders if it agrees to mail the desired communication or proxy, on behalf of and at the expense of the requesting Noteholders, to all Noteholders. 
  
 ARTICLE VIII. 
  
 ACCOUNTS, DISBURSEMENTS AND RELEASES 
  
 SECTION 8.1 Collection of Money. Except as otherwise expressly
provided herein, the Indenture Trustee may demand payment or delivery of, and shall receive and collect, directly and without intervention or assistance of any fiscal agent or other intermediary, all money and other property payable to or receivable
by the Indenture Trustee pursuant to this Indenture. The Indenture Trustee shall apply all such money received by it as provided in this Indenture. Except as otherwise expressly provided in this Indenture, if any default occurs in the making of any
payment or performance under any agreement or instrument that is part of the Trust Estate, the Indenture Trustee may take such action as may be appropriate to enforce such payment or performance, including the institution and prosecution of
appropriate Proceedings. Any such action shall be without prejudice to any right to claim a Default or Event of Default 

  

					
	 	 	40	 	E*Trade 2004-1 Indenture

 
under this Indenture and any right to proceed thereafter as provided in Article V. Notwithstanding the foregoing provisions of this Section
8.1, the Indenture Trustee shall not be empowered to demand payment of or to enforce payment or performance of any Receivable, except during the continuance of an Event of Default, and, during the pendency of such an Event of Default, shall be
protected in refraining from making any such demand or instituting any proceeding to enforce such payment or performance as long as the Servicer shall be servicing the Receivables. 
  
 SECTION 8.2 Trust Accounts. 
  
 (a) On or prior to the Closing Date, the Issuer shall cause the Indenture Trustee to establish and maintain the Trust
Accounts as provided in Section 5.1 of the Transfer and Servicing Agreement. 
  
 (b) Collections with respect to the Receivables and other amounts with respect to each Collection Period shall be deposited in the Collection Account as provided in Sections 5.2, 5.05 and 5.06 of
the Transfer and Servicing Agreement. On each Payment Date, all amounts required to be deposited in the Principal Distribution Account with respect to the preceding Collection Period pursuant to Section 5.06 of the Transfer and Servicing
Agreement shall be transferred from the applicable Trust Account to the Principal Distribution Account. 
  
 (c) Except as set forth under Sections 8.2(f), 8.2(g), 8.2(h), as applicable, the Indenture Trustee shall make the following deposits
and distributions, from amounts on deposit in the Collection Account on each Payment Date in the following amounts and order of priority: 
  

	 	(i)	to the Indenture Trustee and Owner Trustee, fees and reasonable expenses (including indemnification amounts) not previously paid and not to exceed, in the aggregate, $100,000 per
annum; 

  

	 	(ii)	to the Servicer, the Servicing Fee and all prior unpaid Servicing Fees from prior Collection Periods, and to the Back-Up Servicer, if the Back-Up Servicer has replaced the initial
Servicer or any of its Affiliates as Servicer in accordance with the terms of the Transfer and Servicing Agreement, any unpaid transition expenses due to the Back-Up Servicer in respect of a transfer of servicing not to exceed in the aggregate,
$100,000; 

  

	 	(iii)	 to the Class A Noteholders, (A) the aggregate amount of interest accrued for the related Interest Accrual Period on the Class A Notes at their respective Interest
Rates on the respective Note Balance of the Class A Notes as of the previous Payment Date after giving effect to all payments of principal to the Class A Noteholders on such previous Payment Date; provided that if there are not sufficient
funds available to pay the entire amount of the accrued Class A Note interest, the amounts available shall be applied to the payment of such interest on the Class A Notes on a pro rata basis based upon the amount of interest due on each Class of
Class A Notes; and (B) the excess, if any, of the amount of interest payable to the Class A Noteholders on prior Payment Dates over the amounts actually 

  

					
	 	 	41	 	E*Trade 2004-1 Indenture

	 	 
paid to the Class A Noteholders in respect of interest on the Class A Notes on those prior Payment Dates, plus interest on any such shortfall to the extent
permitted by law; 

  

	 	(iv)	to the Principal Distribution Account, the First Allocation of Principal, if any; 

  

	 	(v)	to the Class B Noteholders, (A) the aggregate amount of interest accrued for the related Interest Accrual Period on the Class B Notes at the Interest Rate for the Class B Notes on
the Note Balance of the Class B Notes as of the previous Payment Date after giving effect to all payments of principal to the Class B Noteholders on such previous Payment Date; provided that if there are not sufficient funds available to pay
the entire amount of the accrued Class B Note interest, the amounts available shall be applied to the payment of such interest on the Class B Notes on a pro rata basis; and (B) the excess, if any, of the amount of interest payable to the Class B
Noteholders on prior Payment Dates over the amounts actually paid to the Class B Noteholders in respect of interest on the Class B Notes on those prior Payment Dates, plus interest on any such shortfall to the extent permitted by law;

  

	 	(vi)	to the Principal Distribution Account, the Second Allocation of Principal, if any; 

  

	 	(vii)	to the Class C Noteholders, (A) the aggregate amount of interest accrued for the related Interest Accrual Period on the Class C Notes at the Interest Rate for the Class C Notes on
the Note Balance of the Class C Notes as of the previous Payment Date after giving effect to all payments of principal to the Class C Noteholders on such previous Payment Date; provided that if there are not sufficient funds available to pay
the entire amount of the accrued Class C Note interest, the amounts available shall be applied to the payment of such interest on the Class C Notes on a pro rata basis; and (B) the excess, if any, of the amount of interest payable to the Class C
Noteholders on prior Payment Dates over the amounts actually paid to the Class C Noteholders in respect of interest on the Class C Notes on those prior Payment Dates, plus interest on any such shortfall to the extent permitted by law;

  

	 	(viii)	to the Principal Distribution Account, the Third Allocation of Principal, if any: 

  

	 	(ix)	 to the Class D Noteholders, (A) the aggregate amount of interest accrued for the related Interest Accrual Period on the Class D Notes at the Interest Rate for the
Class D Notes on the Note Balance of the Class D Notes as of the previous Payment Date after giving effect to all payments of principal to the Class D Noteholders on such previous Payment Date; provided that if there are not sufficient funds
available to pay the entire amount of the 

  

					
	 	 	42	 	E*Trade 2004-1 Indenture

	 	 
accrued Class D Note interest, the amounts available shall be applied to the payment of such interest on the Class D Notes on a pro rata basis; and (B) the
excess, if any, of the amount of interest payable to the Class D Noteholders on prior Payment Dates over the amounts actually paid to the Class D Noteholders in respect of interest on the Class D Notes on those prior Payment Dates, plus interest on
any such shortfall to the extent permitted by law; 

  

	 	(x)	to the Principal Distribution Account, the Fourth Allocation of Principal, if any; 

  

	 	(xi)	to the Class E Noteholders, (A) the aggregate amount of interest, if any, accrued for the related Interest Accrual Period on the Class E Notes at the Interest Rate for the Class E
Notes on the Note Balance of the Class E Notes as of the previous Payment Date after giving effect to all payments of principal to the Class E Noteholders on such previous Payment Date; provided that if there are not sufficient funds
available to pay the entire amount of such accrued Class E Note interest the amounts available shall be applied to the payment of such interest on the Class E Notes on a pro rata basis; and (B) the excess, if any, of the amount of interest payable
to the Class E Noteholders on prior Payment Dates over the amounts actually paid to the Class E Noteholders in respect of interest on the Class E Notes on those prior Payment Dates, plus interest on any such shortfall to the extent permitted by law;

  

	 	(xii)	to the Principal Distribution Account, the Fifth Allocation of Principal, if any; 

  

	 	(xiii)	subject to Section 5.07(c) of the Transfer and Servicing Agreement, to the Reserve Account, the Specified Reserve Account Balance on that Payment Date;

  

	 	(xiv)	to the Principal Distribution Account, principal of the Notes in an amount equal to the amount by which the Note Balance of all the Notes then Outstanding (reduced by any amounts
allocated to pay principal of the Notes under clauses (iv), (vi), (viii), (x) and (xii) above) exceeds an amount equal to the Pool Balance minus the Overcollateralization Target Amount;

  

	 	(xv)	to the Indenture Trustee and Owner Trustee, fees and reasonable expenses (including indemnification amounts) and, with respect to the Back-Up Servicer, any transition expenses, not
previously paid, provided if there are not sufficient funds available to pay the entire amount of all such fees, expenses, and transition expenses the amounts available will be applied on a pro rata basis based upon the amount of such unpaid
fees expenses and transition expenses owed to the Indenture Trustee, Owner Trustee and Back-Up Servicer, respectively; and 

  

					
	 	 	43	 	E*Trade 2004-1 Indenture

	 	(xvi)	 any remaining amounts on deposit in the Collection Account on such Payment Date will be paid, prior to the Crossover Date or if a Trigger Event is in effect, to the Principal
Distribution Account; and, on and after the Crossover Date so long as a Trigger Event is not in effect, to the Residual Interestholder. 

  
 (d) On each Payment Date on and after the Crossover Date, so long as a Trigger Event is not in effect, the Indenture Trustee shall make the following
distributions, from amounts deposited into the Principal Distribution Account in Sections 8.2(c)(iv), (vi), (viii), (x), (xii), and (xiv) above in the following amounts and order of priority: 
  

	 	(i)	to the Class A-1 Notes until they have been paid in full, then to the Class A-2 Notes until they have been paid in full, then to the Class A-3 Notes until they have been paid in
full, then to the Class A-4 Notes until they have been paid in full and then to the Class A-5 Notes until they have been paid in full, the Class A Principal Distribution Amount; 

  

	 	(ii)	to the Class B Notes, the Class B Principal Distribution Amount; 

  

	 	(iii)	to the Class C Notes, the Class C Principal Distribution Amount; 

  

	 	(iv)	to the Class D Notes, the Class D Principal Distribution Amount; and 

  

	 	(v)	to the Class E Notes, the Class E Principal Distribution Amount. 

  
 (e) On each Payment Date prior to the Crossover Date or if a Trigger Event is in effect, the Indenture Trustee shall make the following distributions,
from amounts deposited into the Principal Distribution Account in Sections 8.2(c) (iv), (vi), (viii), (x), (xii), (xiv) and (xvi) above in the following amounts and order of priority: 
  

	 	(i)	to the Class A-1 Notes until they have been paid in full, then to the Class A-2 Notes until they have been paid in full, then to the Class A-3 Notes until they have been paid in
full, then to the Class A-4 Notes until they have been paid in full and then to the Class A-5 Notes until they have been paid in full; 

  

	 	(ii)	to the Class B Notes, until they have been paid in full; 

  

	 	(iii)	to the Class C Notes, until they have been paid in full; 

  

	 	(iv)	to the Class D Notes, until they have been paid in full; and 

  

	 	(v)	to the Class E Notes, until they have been paid in full. 

  
 (f) Following the occurrence of any Event of Default which has not resulted in an acceleration of the Notes, interest and principal on the Notes shall be
paid on each Payment Date in the manner set forth in Section 8.2(c) and Section 8.2(d) or Section 8.2(e), as applicable at such time. 
  

					
	 	 	44	 	E*Trade 2004-1 Indenture

 (g) Following the occurrence and during the continuation of an Event of Default (other than the Event of
Default set forth in Section 5.1(iii)) which has resulted in the acceleration of the Notes, the Indenture Trustee shall make the following deposits and distributions, from amounts on deposit in the Collection Account on each Payment Date in
the following amounts and order of priority: 
  

	 	(i)	to the Indenture Trustee and Owner Trustee, fees and reasonable expenses (including indemnification amounts) not previously paid; 

  

	 	(ii)	to the Servicer, the Servicing Fee and all prior unpaid Servicing Fees, and to the Back-Up Servicer, if the Back-Up Servicer has replaced the initial Servicer or any of its
Affiliates as Servicer in accordance with the terms of the Transfer and Servicing Agreement, any unpaid transition expenses due to the Back-Up Servicer in respect of a transfer of servicing not to exceed, in the aggregate, $100,000;

  

	 	(iii)	to the Class A Noteholders, (A) the aggregate amount of interest accrued for the related Interest Accrual Period on the Class A Notes at their respective Interest Rates on the
respective Note Balance of the Class A Notes as of the previous Payment Date after giving effect to all payments of principal to the Class A Noteholders on such previous Payment Date; provided that if there are not sufficient funds available
to pay the entire amount of the accrued Class A Note interest, the amounts available shall be applied to the payment of such interest on the Class A Notes on a pro rata basis based upon the amount of interest due on each Class of Class A Notes; and
(B) the excess, if any, of the amount of interest payable to the Class A Noteholders on prior Payment Dates over the amounts actually paid to the Class A Noteholders in respect of interest on the Class A Notes on those prior Payment Dates, plus
interest on any such shortfall to the extent permitted by law; 

  

	 	(iv)	to the Class A-1 Class A-2, Class A-3, Class A-4 and Class A-5 Noteholders, principal of the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes and the
Class A-5 Notes pro rata, based on the Note Balance of each outstanding Class of Class A Notes, until all Classes of the Class A Notes have been paid in full; 

  

	 	(v)	 to the Class B Noteholders, (A) the aggregate amount of interest accrued for the related Interest Accrual Period on the Class B Notes at the Interest Rate for the
Class B Notes on the Note Balance of the Class B Notes as of the previous Payment Date after giving effect to all payments of principal to the Class B Noteholders on such previous Payment Date; provided that if there are not sufficient funds
available to pay the entire amount of the accrued Class B Note interest, the amounts available shall be applied to the payment of such interest on the Class B Notes on a pro rata basis; and (B) the excess, if any, of the amount of interest payable
to the Class B Noteholders on prior Payment Dates over the amounts actually paid to the 

  

					
	 	 	45	 	E*Trade 2004-1 Indenture

	 	 
Class B Noteholders in respect of interest on the Class B Notes on those prior Payment Dates, plus interest on any such shortfall to the extent permitted by
law; 

  

	 	(vi)	to the Class B Noteholders, principal of the Class B Notes until the Class B Notes have been paid in full; 

  

	 	(vii)	to the Class C Noteholders, (A) the aggregate amount of interest accrued for the related Interest Accrual Period on the Class C Notes at the Interest Rate for the Class C Notes on
the Note Balance of the Class C Notes as of the previous Payment Date after giving effect to all payments of principal to the Class C Noteholders on such previous Payment Date; provided that if there are not sufficient funds available to pay
the entire amount of the accrued Class C Note interest, the amounts available shall be applied to the payment of such interest on the Class C Notes on a pro rata basis; and (B) the excess, if any, of the amount of interest payable to the Class C
Noteholders on prior Payment Dates over the amounts actually paid to the Class C Noteholders in respect of interest on the Class C Notes on those prior Payment Dates, plus interest on any such shortfall to the extent permitted by law;

  

	 	(viii)	to the Class C Noteholders, principal of the Class C Notes until the Class C Notes have been paid in full; 

  

	 	(ix)	to the Class D Noteholders, (A) the aggregate amount of interest accrued for the related Interest Accrual Period on the Class D Notes at the Interest Rate for the Class D Notes on
the Note Balance of the Class D Notes as of the previous Payment Date after giving effect to all payments of principal to the Class D Noteholders on such previous Payment Date; provided that if there are not sufficient funds available to pay the
entire amount of the accrued Class D Note interest, the amounts available shall be applied to the payment of such interest on the Class D Notes on a pro rata basis; and (B) the excess, if any, of the amount of interest payable to the Class D
Noteholders on prior Payment Dates over the amounts actually paid to the Class D Noteholders in respect of interest on the Class D Notes on those prior Payment Dates, plus interest on any such shortfall to the extent permitted by law;

  

	 	(x)	to the Class D Noteholders, principal of the Class D Notes until the Class D Notes have been paid in full; 

  

	 	(xi)	 to the Class E Noteholders, (A) the aggregate amount of interest accrued, if any, for the related Interest Accrual Period on the Class E Notes at the Interest Rate
for the Class E Notes on the Note Balance of the Class E Notes as of the previous Payment Date after giving effect to all payments of principal to the Class E Noteholders on such previous Payment Date; provided that if there are not
sufficient funds available to pay the entire 

  

					
	 	 	46	 	E*Trade 2004-1 Indenture

	 	 
amount of such accrued Class E Note interest, the amounts available shall be applied to the payment of such interest on the Class E Notes on a pro rata
basis; and (B) the excess, if any, of the amount of interest payable to the Class E Noteholders on prior Payment Dates over the amounts actually paid to the Class E Noteholders in respect of interest on the Class E Notes on those prior Payment
Dates, plus interest on any such shortfall to the extent permitted by law; 

  

	 	(xii)	to the Class E Noteholders, principal of the Class E Notes until the Class E Notes have been paid in full; 

  

	 	(xiii)	to the Back-Up Servicer, any transition expenses not previously paid; and 

  

	 	(xiv)	 any remaining amounts will be paid to the Residual Interestholder. 

  
 (h) Following the occurrence and during the continuation of an Event of Default set forth in Section 5.1(iii) which has resulted in the
acceleration of the Notes, the Indenture Trustee shall make the following deposits and distributions, from amounts on deposit in the Collection Account on each Payment Date in the following amounts and order of priority: 
  

	 	(i)	to the Indenture Trustee and Owner Trustee, fees and reasonable expenses (including indemnification amounts) not previously paid; 

  

	 	(ii)	to the Servicer, the Servicing Fee and all prior unpaid Servicing Fees from prior Collection Periods and to the Back-Up Servicer, if the Back-Up Servicer has replaced the initial
Servicer or any of its Affiliates as Servicer in accordance with terms of the Transfer and Servicing Agreement, any unpaid transition expenses due to the Back-Up Servicer in respect of a transfer of servicing not to exceed, in the aggregate,
$100,000; 

  

	 	(iii)	to the Class A Noteholders, (A) the aggregate amount of interest accrued for the related Interest Accrual Period on the Class A Notes at their respective Interest Rates on the
respective Note Balance of the Class A Notes as of the previous Payment Date after giving effect to all payments of principal to the Class A Noteholders on such previous Payment Date; provided that if there are not sufficient funds available
to pay the entire amount of the accrued Class A Note interest, the amounts available shall be applied to the payment of such interest on the Class A Notes on a pro rata basis based upon the amount of interest due on each Class of Class A Notes; and
(B) the excess, if any, of the amount of interest payable to the Class A Noteholders on prior Payment Dates over the amounts actually paid to the Class A Noteholders in respect of interest on the Class A Notes on those prior Payment Dates, plus
interest on any such shortfall to the extent permitted by law; 

  

	 	(iv)	 to the Class B Noteholders, (A) the aggregate amount of interest accrued for the related Interest Accrual Period on the Class B Notes at the Interest Rate for the
Class B Notes on the Note Balance of the Class B Notes as of 

  

					
	 	 	47	 	E*Trade 2004-1 Indenture

	 	 
the previous Payment Date after giving effect to all payments of principal to the Class B Noteholders on such previous Payment Date; provided that if there
are not sufficient funds available to pay the entire amount of the accrued Class B Note interest, the amounts available shall be applied to the payment of such interest on the Class B Notes on a pro rata basis; and (B) the excess, if any, of the
amount of interest payable to the Class B Noteholders on prior Payment Dates over the amounts actually paid to the Class B Noteholders in respect of interest on the Class B Notes on those prior Payment Dates, plus interest on any such shortfall to
the extent permitted by law; 

  

	 	(v)	to the Class C Noteholders, (A) the aggregate amount of interest accrued for the related Interest Accrual Period on the Class C Notes at the Interest Rate for the Class C Notes on
the Note Balance of the Class C Notes as of the previous Payment Date after giving effect to all payments of principal to the Class C Noteholders on such previous Payment Date; provided that if there are not sufficient funds available to pay
the entire amount of the accrued Class C Note interest, the amounts available shall be applied to the payment of such interest on the Class C Notes on a pro rata basis; and (B) the excess, if any, of the amount of interest payable to the Class C
Noteholders on prior Payment Dates over the amounts actually paid to the Class C Noteholders in respect of interest on the Class C Notes on those prior Payment Dates, plus interest on any such shortfall to the extent permitted by law;

  

	 	(vi)	to the Class D Noteholders, (A) the aggregate amount of interest accrued for the related Interest Accrual Period on the Class D Notes at Interest Rate for the Class D Notes on the
Note Balance of the Class D Notes as of the previous Payment Date after giving effect to all payments of principal to the Class D Noteholders on such previous Payment Date; provided that if there are not sufficient funds available to pay the
entire amount of the accrued Class D Note interest, the amounts available shall be applied to the payment of such interest on the Class D Notes on a pro rata basis and (B) the excess, if any, of the amount of interest payable to the Class D
Noteholders on prior Payment Dates over the amounts actually paid to the Class D Noteholders in respect of interest on the Class D Notes on those prior Payment Dates, plus interest on any such shortfall to the extent permitted by law;

  

	 	(vii)	 to the Class E Noteholders, (A) the aggregate amount of interest accrued, if any, for the related Interest Accrual Period on the Class E Notes at the Interest Rate
for the Class E Notes on the Note Balance of the Class E Notes as of the previous Payment Date after giving effect to all payments of principal to the Class E Noteholders on such previous Payment Date; provided that if there are not
sufficient funds available to pay the entire amount of such accrued Class E Note interest, the amounts available shall be applied to the payment of such interest on the Class E Notes on a pro 

  

					
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rata basis; and (B) the excess, if any, of the amount of interest payable to the Class E Noteholders on prior Payment Dates over the amounts actually paid to
the Class E Noteholders in respect of interest on the Class E Notes on those prior Payment Dates, plus interest on any such shortfall to the extent permitted by law; 

  

	 	(viii)	to the Class A-1 Class A-2, Class A-3, Class A-4 and Class A-5 Noteholders, principal of the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes and the
Class A-5 Notes pro rata, based on the Note Balance of each outstanding Class of Class A Notes, until all Classes of the Class A Notes have been paid in full; 

  

	 	(ix)	to the Class B Noteholders, principal of the Class B Notes until the Class B Notes have been paid in full; 

  

	 	(x)	to the Class C Noteholders, principal of the Class C Notes until the Class C Notes have been paid in full; 

  

	 	(xi)	to the Class D Noteholders, principal of the Class D Notes until the Class D Notes have been paid in full; 

  

	 	(xii)	to the Class E Noteholders, principal of the Class E Notes until the Class E Notes have been paid in full; 

  

	 	(xiii)	to the Back-Up Servicer, any transition expenses not previously paid; and 

  

	 	(xiv)	 any remaining amounts will be paid to the Residual Interestholder. 

  
 SECTION 8.3 General Provisions Regarding Accounts. 
  

(a) So long as no Default or Event of Default shall have occurred and be continuing, all or a portion of the funds in the Trust Accounts shall be
invested or reinvested in Eligible Investments pursuant to Section 5.01(b) of the Transfer and Servicing Agreement by the Indenture Trustee. The Servicer shall not direct the Indenture Trustee to make any investment of any funds or to sell
any investment held in any of the Trust Accounts unless the security interest Granted and perfected in such account shall continue to be perfected in such investment or the proceeds of such sale, in either case without any further action by any
Person, and, in connection with any direction to the Indenture Trustee to make any such investment or sale, if requested by the Indenture Trustee, the Issuer shall deliver to the Indenture Trustee an Opinion of Counsel, acceptable to the Indenture
Trustee, to such effect. 
  
 (b) Subject to Section 6.1(c),
the Indenture Trustee shall not in any way be held liable by reason of any insufficiency in any of the Trust Accounts resulting from any loss on any Eligible Investment included therein except for losses attributable to the Indenture Trustee’s
failure to make payments on such Eligible Investments issued by the Indenture Trustee, in its commercial capacity as principal obligor and not as trustee, in accordance with their terms. 
  

					
	 	 	49	 	E*Trade 2004-1 Indenture

 (c) If (i) the Servicer (pursuant to Section 5.01(b) of the Transfer and Servicing Agreement)
shall have failed to give investment directions for any funds on deposit in the Trust Accounts to the Indenture Trustee by 11:00 a.m. (New York City time) (or such other time as may be agreed by the Servicer and Indenture Trustee) on any Business
Day or (ii) a Default or Event of Default shall have occurred and is continuing with respect to the Notes but the Notes shall not have been declared due and payable pursuant to Section 5.2 or (iii) if such Notes shall have been declared due
and payable following an Event of Default but amounts collected or receivable from the Trust Estate are being applied in accordance with Section 5.5 as if there had not been such a declaration, then the Indenture Trustee shall, to the fullest
extent practicable, invest and reinvest funds in the Trust Accounts (other than the Principal Distribution Account) in money market funds having a rating from each of the Rating Agencies in the highest investment category granted thereby (including
funds for which the Indenture Trustee or the Owner Trustee or any of their respective Affiliates is investment manager or advisor). 
  
 (d) Nothing in this Section 8.3 shall require the investment of any funds on deposit in the Principal Distribution Account. 
  
 SECTION 8.4 Release of Trust Estate. (a) Subject to the payment
of its fees, expenses and indemnities pursuant to Section 6.7, the Indenture Trustee shall, when required by Section 8.4(b), execute instruments (prepared by the Issuer) to release (without recourse or warranty) property from the lien
of this Indenture, or convey the Indenture Trustee’s interest in the same, in a manner and under circumstances that are not inconsistent with the provisions of this Indenture. No party relying upon an instrument executed by the Indenture
Trustee as provided in this Article VIII shall be bound to ascertain the Indenture Trustee’s authority, inquire into the satisfaction of any conditions precedent or see to the application of any moneys. 
  
 (b) The Indenture Trustee shall, at such time as there are no Notes
Outstanding and all sums due the Indenture Trustee pursuant to Section 6.7 have been paid, release any remaining portion of the Trust Estate that secured the Notes from the lien of this Indenture and release to the Issuer or any other Person
entitled thereto any funds then on deposit in the Trust Accounts. The Indenture Trustee shall release property from the lien of this Indenture pursuant to this Section 8.4(b) only upon receipt of an Issuer Request accompanied by an
Officer’s Certificate, an Opinion of Counsel and (if required by the TIA) Independent Certificates in accordance with TIA Sections 314(c) and 314(d)(1) meeting the applicable requirements of Section 11.1. 
  
 SECTION 8.5 Opinion of Counsel. The Indenture Trustee shall
receive at least seven days notice when requested by the Issuer to take any action pursuant to Section 8.4(a), accompanied by copies of any instruments involved, and the Indenture Trustee shall also require, as a condition to such action, an
Opinion of Counsel, in form and substance satisfactory to the Indenture Trustee, stating the legal effect of any such action, outlining the steps required to complete the same, and concluding that all conditions precedent to the taking of such
action have been complied with and such action shall not materially and adversely impair the security for the Notes or the rights of the Noteholders in contravention of the provisions of this Indenture; provided, however, that such
Opinion of Counsel shall not be required to express an opinion as to the fair value of the Trust Estate. Counsel rendering any such opinion may rely, without independent investigation, on the accuracy and validity of any certificate or other
instrument delivered to the Indenture Trustee in connection with any such action. 
  

					
	 	 	50	 	E*Trade 2004-1 Indenture

 ARTICLE IX. 
  
 SUPPLEMENTAL INDENTURES 
  
 SECTION 9.1 Supplemental Indentures Without Consent of Noteholders. 
  
 (a) Without the consent of the Holders of any Notes but with prior notice to the Rating Agencies, the Issuer and the
Indenture Trustee, when authorized by an Issuer Order, at any time and from time to time, may enter into one or more indentures supplemental hereto (which shall conform to the provisions of the Trust Indenture Act as in force at the date of the
execution thereof), in form satisfactory to the Indenture Trustee, for any of the following purposes: 
  

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

  

	 	(ii)	to evidence the succession, in compliance with the applicable provisions hereof, of another Person to the Issuer, and the assumption by any such successor of the covenants of the
Issuer herein and in the Notes contained; 

  

	 	(iii)	to add to the covenants of the Issuer, for the benefit of the Holders of the Notes, or to surrender any right or power herein conferred upon the Issuer; 

  

	 	(iv)	to convey, transfer, assign, mortgage or pledge any property to or with the Indenture Trustee; 

  

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

  

	 	(vi)	to evidence and provide for the acceptance of the appointment hereunder by a successor trustee with respect to the Notes and to add to or change any of the provisions of this
Indenture as shall be necessary to facilitate the administration of the trusts hereunder by more than one trustee, pursuant to the requirements of Article VI; or 

  

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

  

					
	 	 	51	 	E*Trade 2004-1 Indenture

 The Indenture Trustee is hereby authorized to join in the execution of any such supplemental indenture and to make any
further appropriate agreements and stipulations that may be therein contained. 
  
 (b) The Issuer and the Indenture Trustee, when authorized by an Issuer Order, may, also without the consent of any of the Holders of the Notes but subject to satisfaction of the Rating Agency Condition with respect
thereto and in each case subject to Section 9.2, enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to, or changing in any manner or eliminating any of the provisions of, this Indenture or of
modifying in any manner the rights of the Holders of the Notes under this Indenture; provided, however, that such action shall not, as evidenced by an Opinion of Counsel, adversely affect in any material respect the interests of any
Noteholder. 
  
 SECTION 9.2 Supplemental Indentures with
Consent of Noteholders. The Issuer and the Indenture Trustee, when authorized by an Issuer Order, also may, with prior notice to the Rating Agencies and with the consent of the Holders of a majority of the Notes then Outstanding, by Act of such
Holders of such Notes delivered to the Issuer and the Indenture Trustee, enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to, or changing in any manner or eliminating any of the provisions of, this
Indenture or of modifying in any manner the rights of the Holders of the Notes under this Indenture; provided, however, that no such supplemental indenture shall, without the consent of the Holder of each Note then Outstanding affected
thereby: 
  

	 	(i)	change the date of payment of any installment of principal of or interest on any Note, or reduce the principal amount thereof, the interest rate thereon or the Redemption Price with
respect thereto, change the provisions of this Indenture relating to the application of collections on, or the proceeds of the sale of, the Trust Estate to payment of principal of or interest on the Notes, or change any place of payment where, or
the coin or currency in which, any Note or the interest thereon is payable, or impair the right to institute suit for the enforcement of the provisions of this Indenture requiring the application of funds available therefor, as provided in
Article V, to the payment of any such amount due on the Notes on or after the respective due dates thereof (or, in the case of redemption, on or after the Redemption Date); 

  

	 	(ii)	reduce the percentage of the Note Balance of the Notes or the Notes of the Controlling Class, the consent of the Holders of which is required for any such supplemental indenture, or
the consent of the Holders of which is required for any waiver of certain defaults hereunder and their consequences provided for in this Indenture; 

  

	 	(iii)	modify or alter the provisions of the proviso to the definition of the term “Outstanding” or “Controlling Class”, each as defined in the Transfer and
Servicing Agreement; 

  

					
	 	 	52	 	E*Trade 2004-1 Indenture

	 	(iv)	reduce the percentage of the Note Balance of the Notes required to direct the Indenture Trustee pursuant to Sections 5.11 or 5.16(b) or to direct the Indenture Trustee
to sell or liquidate the Trust Estate pursuant to Section 5.4; 

  

	 	(v)	modify any provision of this Section except to increase any percentage specified herein or to provide that certain additional provisions of this Indenture cannot be modified or
waived without the consent of the Holder of each Outstanding Note affected thereby; 

  

	 	(vi)	modify any of the provisions of this Indenture in such manner as to affect the calculation of the amount of any payment of interest or principal due on any Note on any Payment Date
(including the calculation of any of the individual components of such calculation) or to affect the rights of the Holders of Notes to the benefit of any provisions for the redemption of the Notes contained herein; 

  

	 	(vii)	permit the creation of any lien ranking prior to or on a parity with the lien of this Indenture with respect to any part of the Trust Estate or, except as otherwise permitted or
contemplated herein, terminate the lien of this Indenture on any property at any time subject hereto or deprive the Holder of any Note of the security provided by the lien of this Indenture; 

  

	 	(viii)	impair the right to institute suit for the enforcement of non-payment hereunder as provided in Section 5.3; or 

  

	 	(ix)	modify or alter the provisions of hereof regarding the voting of Notes, any other obligor on such Notes, the Depositor, the Transferor or an Affiliate of any of them (including the
proviso to the definition of “Outstanding” in the Transfer and Servicing Agreement). 

  
 The Indenture Trustee may in its discretion determine whether or not any Notes would be affected by any supplemental indenture and any such determination shall be
conclusive upon the Holders of all Notes, whether theretofore or thereafter authenticated and delivered hereunder. The Indenture Trustee shall not be liable for any such determination made in good faith. 
  
 It shall not be necessary for any Act of Noteholders under this Section to approve the
particular form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve the substance thereof. 
  
 Promptly after the execution by the Issuer and the Indenture Trustee of any supplemental indenture pursuant to this Section, the Indenture Trustee shall mail to the
Holders of the Notes to which such amendment or supplemental indenture relates a notice setting forth in general terms the substance of such supplemental indenture. Any failure of the Indenture Trustee to mail such notice, or any defect therein,
shall not, however, in any way impair or affect the validity of any such supplemental indenture. 
  
 This Section 9.2 is subject to Section 5.7. 
  

					
	 	 	53	 	E*Trade 2004-1 Indenture

 SECTION 9.3 Execution of Supplemental Indentures. In executing, or permitting the
additional trusts created by, any supplemental indenture permitted by this Article IX or the modification thereby of the trusts created by this Indenture, the Indenture Trustee shall be entitled to receive, and subject to Sections 6.1 and
6.2, shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by this Indenture. The Indenture Trustee may, but shall not be obligated to, enter into
any such supplemental indenture that affects the Indenture Trustee’s own rights, duties, liabilities or immunities under this Indenture or otherwise. 
  
 SECTION 9.4 Effect of Supplemental Indenture. Upon the execution of any supplemental indenture pursuant to the provisions hereof, this
Indenture shall be and shall be deemed to be modified and amended in accordance therewith with respect to the Notes affected thereby, and the respective rights, limitations of rights, obligations, duties, liabilities and immunities under this
Indenture of the Indenture Trustee, the Issuer and the Holders of the Notes shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such
supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes. 
  
 SECTION 9.5 Conformity with Trust Indenture Act. Every amendment of this Indenture and every supplemental indenture executed pursuant to
this Article IX shall conform to the requirements of the Trust Indenture Act as then in effect so long as this Indenture shall then be qualified under the Trust Indenture Act. 
  
 SECTION 9.6 Reference in Notes to Supplemental Indentures. Notes authenticated and delivered after the
execution of any supplemental indenture pursuant to this Article IX may, and if required by the Indenture Trustee shall, bear a notation in form approved by the Indenture Trustee as to any matter provided for in such supplemental indenture.
If the Issuer or the Indenture Trustee shall so determine, new Notes so modified as to conform, in the opinion of the Indenture Trustee and the Issuer, to any such supplemental indenture may be prepared and executed by the Issuer and authenticated
and delivered by the Indenture Trustee in exchange for Notes then Outstanding. 
  
 ARTICLE X. 
  
 REDEMPTION
OF NOTES 
  
 SECTION 10.1 Redemption. The Notes
are subject to redemption in whole, but not in part on any Payment Date on which the Servicer exercises its option to purchase the Trust Estate pursuant to Section 9.1(a) of the Transfer and Servicing Agreement, for a purchase price equal to
the Redemption Price (such Payment Date being referred to as the “Redemption Date”). The Servicer shall furnish the Rating Agencies notice of such redemption. If the Notes are to be redeemed pursuant to this Section 10.1, the
Servicer shall furnish prior written notice of such election to the Indenture Trustee and the Issuer shall deposit or cause to be deposited by 10:00 A.M. New York City time on the Redemption Date with the Indenture Trustee in the Principal
Distribution Account the Redemption Price of each Class of Notes. All such Notes 

  

					
	 	 	54	 	E*Trade 2004-1 Indenture

 
shall be due and payable on the Redemption Date upon the furnishing of a notice complying with Section 10.2. 
  
 SECTION 10.2 Form of Redemption Notice. Notice of redemption
under Section 10.1 shall be given by the Indenture Trustee by first-class mail, postage prepaid, or by facsimile mailed or transmitted, not later than 30 days prior to the applicable Redemption Date to each Holder of Notes, as of the close of
business on the Record Date preceding the giving of such notice, at such Holder’s address or facsimile number appearing in the Note Register. 
  
 All notices of redemption shall state: 
  

	 	(i)	the Redemption Date; 

  

	 	(ii)	the Redemption Price; and 

  

	 	(iii)	the place where such Notes are to be surrendered for payment of the Redemption Price (which shall be the office or agency of the Issuer to be maintained as provided in Section
3.2). 

  
 Notice of redemption of the Notes shall be given by
the Indenture Trustee in the name and at the expense of the Issuer. Failure to give notice of redemption, or any defect therein, to any Holder of any Note shall not impair or affect the validity of the redemption of any other Note. 
  
 SECTION 10.3 Notes Payable on Redemption Date. The Notes to be
redeemed shall, following notice of redemption as required by Section 10.2, on the Redemption Date become due and payable at the Redemption Price and (unless the Issuer shall default in the payment of the Redemption Price) no interest shall
accrue on the Redemption Price for any period after the date to which accrued interest is calculated for purposes of calculating the Redemption Price. 
  
 ARTICLE XI. 
  
 MISCELLANEOUS 
  
 SECTION 11.1 Compliance Certificates and Opinions, etc. 
  
 (a) Upon any application or request by the Issuer to the Indenture Trustee to take any action under any provision of this Indenture, the Issuer shall
furnish to the Indenture Trustee (i) an Officer’s Certificate stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with that satisfies TIA Section 314(c)(1), (ii) an
Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent, if any, have been complied with that satisfies TIA Section 314(c)(2) and (iii) (if required by the TIA) an Independent Certificate from a firm of certified
public accountants meeting the applicable requirements of this Section, and that satisfies TIA Section 314(c)(3), except that, in the case of any such application or request as to which the furnishing of such documents is specifically required by
any provision of this Indenture, no additional certificate or opinion need be furnished. 
  

					
	 	 	55	 	E*Trade 2004-1 Indenture

 Every certificate or opinion in accordance with TIA Section 314(e) with respect to compliance with a
condition or covenant provided for in this Indenture shall include: 
  
 (1) a statement that each signatory of such certificate or opinion has read or has caused to be read such covenant or condition and the definitions herein relating thereto; 
  
 (2) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions
contained in such certificate or opinion are based; 
  
 (3) a
statement that, in the opinion of each such signatory, such signatory has made such examination or investigation as is necessary to enable such signatory to express an informed opinion as to whether or not such covenant or condition has been
complied with; and 
  
 (4) a statement as to whether, in the
opinion of each such signatory, such condition or covenant has been complied with. 
  

	(b)    (i)	Prior to the deposit of any Collateral or other property or securities with the Indenture Trustee that is to be made the basis for the release of any property or securities subject
to the lien of this Indenture, the Issuer shall, in addition to any obligation imposed in Section 11.1(a) or elsewhere in this Indenture, furnish to the Indenture Trustee an Officer’s Certificate certifying or stating the opinion of each
person signing such certificate as to the fair value in accordance with TIA Section 314(d) (within 90 days of such deposit) to the Issuer of the Collateral or other property or securities to be so deposited. 

  

	 	(ii)	Whenever the Issuer is required to furnish to the Indenture Trustee an Officer’s Certificate certifying or stating the opinion of any signer thereof as to the matters described
in clause (i) above, the Issuer shall also deliver to the Indenture Trustee an Independent Certificate as to the same matters, if the fair value in accordance with TIA Section 314(d) to the Issuer of the property or securities to be so
deposited and of all other such property or securities made the basis of any such release since the commencement of the then-current fiscal year of the Issuer, as set forth in the certificates delivered pursuant to clause (i) above and this
clause (ii), is 10% or more of the Note Balance of the Notes then Outstanding, but such a certificate need not be furnished with respect to any property or securities so deposited, if the fair value thereof to the Issuer as set forth in the
related Officer’s Certificate is less than $25,000 or less than one percent of the Note Balance of the Notes then Outstanding. 

  

	 	(iii)	 Whenever any property or securities are to be released from the lien of this Indenture, the Issuer shall also furnish to the Indenture Trustee an Officer’s
Certificate certifying or stating the opinion of each person 

  

					
	 	 	56	 	E*Trade 2004-1 Indenture

	 	 
signing such certificate as to the fair value (within 90 days of such release) of the property or securities proposed to be released and stating that in the
opinion of such person the proposed release shall not impair the security under this Indenture in contravention of the provisions hereof. 

  

	 	(iv)	Whenever the Issuer is required to furnish to the Indenture Trustee an Officer’s Certificate certifying or stating the opinion of any signer thereof as to the matters described
in clause (iii) above, the Issuer shall also furnish to the Indenture Trustee an Independent Certificate as to the same matters if the fair value of the property or securities and of all other property, other than property as contemplated by
clause (v) below or securities released from the lien of this Indenture since the commencement of the then-current calendar year, as set forth in the certificates required by clause (iii) above and this clause (iv), equals 10%
or more of the Note Balance of the Notes, but such certificate need not be furnished in the case of any release of property or securities if the fair value thereof as set forth in the related Officer’s Certificate is less than $25,000 or less
than one percent of the then Note Balance of the Notes then Outstanding. 

  

	 	(v)	Notwithstanding any other provision of this Section, the Issuer may, without compliance with the requirements of the other provisions of this Section, (A) collect, liquidate, sell
or otherwise dispose of Receivables or Financed Assets as and to the extent permitted or required by the Basic Documents and (B) make cash payments out of the Trust Accounts as and to the extent permitted or required by the Basic Documents, so long
as the Issuer shall deliver to the Indenture Trustee every six months, commencing on the day which is six months after the Closing Date (or, if such day is not a Business Day, on the next Business Day), an Officer’s Certificate of the Issuer
stating that all the dispositions of Collateral described in clauses (A) or (B) above that occurred during the preceding six calendar months were in the ordinary course of the Issuer’s business and that the proceeds thereof were
applied in accordance with the Basic Documents. 

  
 SECTION 11.2 Form of Documents Delivered to Indenture Trustee. In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to
other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. 
  
 Any certificate or opinion of an Authorized Officer of the Issuer may be based, insofar as it relates to legal matters, upon a certificate or opinion of,
or representations by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to the matters upon which such officer’s certificate or opinion is
based are erroneous. Any such certificate of an Authorized Officer or Opinion of 

  

					
	 	 	57	 	E*Trade 2004-1 Indenture

 
Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or officers of any party
to the Transfer and Servicing Agreement, stating that the information with respect to such factual matters is in the possession of such party to the Transfer and Servicing Agreement, unless the person signing such certificate of an Authorized
Officer or such Opinion of Counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to such matters are erroneous. 
  
 Where any Person is required to make, give or execute two or more applications, requests, consents, certificates,
statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one instrument. 
  
 Whenever in this Indenture, in connection with any application or certificate or report to the Indenture Trustee, it is provided that the Issuer shall
deliver any document as a condition of the granting of such application, or as evidence of the Issuer’s compliance with any term hereof, it is intended that the truth and accuracy, at the time of the granting of such application or at the
effective date of such certificate or report (as the case may be), of the facts and opinions stated in such document shall in such case be conditions precedent to the right of the Issuer to have such application granted or to the sufficiency of such
certificate or report. The foregoing shall not, however, be construed to affect the Indenture Trustee’s right to rely upon the truth and accuracy of any statement or opinion contained in any such document as provided in Article VI.

  
 SECTION 11.3 Acts of Noteholders. 
  
 (a) Any request, demand, authorization, direction, notice, consent, waiver or
other action provided by this Indenture to be given or taken by Noteholders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Noteholders in person or by agents duly appointed in writing; and
except as herein otherwise expressly provided such action shall become effective when such instrument or instruments are delivered to the Indenture Trustee and, where it is hereby expressly required, to the Issuer. Such instrument or instruments
(and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Noteholders signing such instrument or instruments. Proof of execution of any such instrument or of a writing appointing
any such agent shall be sufficient for any purpose of this Indenture and (subject to Section 6.1) conclusive in favor of the Indenture Trustee and the Issuer, if made in the manner provided in this Section. 
  
 (b) The fact and date of the execution by any person of any such instrument
or writing may be proved in any manner that the Indenture Trustee deems sufficient. 
  
 (c) The ownership of Notes shall be proved by the Note Register. 
  
 (d) Any request, demand, authorization, direction, notice, consent, waiver or other action by the Holder of any Notes shall bind the Holder of every Note
issued upon the registration thereof or in exchange therefor or in lieu thereof, in respect of anything done, omitted or suffered to be done by the Indenture Trustee or the Issuer in reliance thereon, whether or not notation of such action is made
upon such Note. 
  

					
	 	 	58	 	E*Trade 2004-1 Indenture

 SECTION 11.4 Notices, etc., to Indenture Trustee, Issuer and Rating Agencies. Any request,
demand, authorization, direction, notice, consent, waiver or Act of Noteholders or other documents provided or permitted by this Indenture to be made upon, given or furnished to or filed with: 
  

	 	(i)	the Indenture Trustee by any Noteholder or by the Issuer shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing to or with the Indenture
Trustee at its Corporate Trust Office, or 

  

	 	(ii)	the Issuer by the Indenture Trustee or by any Noteholder shall be sufficient for every purpose hereunder if in writing and mailed first-class, postage prepaid to the Issuer
addressed to: E*Trade RV and Marine Trust 2004-1, in care of the Owner Trustee at its Corporate Trust Office, or at any other address previously furnished in writing to the Indenture Trustee by the Issuer. The Issuer shall promptly transmit any
notice received by it from the Noteholders to the Indenture Trustee. 

  
 Notices required to be given to the Rating Agencies by the Issuer, the Indenture Trustee or the Owner Trustee shall be in writing, personally delivered or mailed by certified mail, return receipt requested, to (i) in
the case of Standard & Poor’s, at the following address: Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., 55 Water Street, New York, New York 10041, Attention: Asset Backed Surveillance Group or
(ii) in the case of Moody’s, at the following address: Moody’s Investors Service, 99 Church Street, New York, New York 10007, Attention: Moody’s ABS Monitoring Group; or as to each of the foregoing, at such other address as shall be
designated by written notice to the other parties. 
  
 SECTION
11.5 Notices to Noteholders; Waiver. Where this Indenture provides for notice to Noteholders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first-class, postage
prepaid, or sent by facsimile transmission, to each Noteholder affected by such event, at such Holder’s address as it appears on the Note Register, not later than the latest date, and not earlier than the earliest date, prescribed for the
giving of such notice. In any case where notice to Noteholders is given by mail, neither the failure to mail such notice nor any defect in any notice so mailed to any particular Noteholder shall affect the sufficiency of such notice with respect to
other Noteholders, and any notice that is mailed in the manner herein provided shall conclusively be presumed to have been duly given. 
  
 Where this Indenture provides for notice in any manner, such notice may be waived in writing by any Person entitled to receive such notice, either before
or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Noteholders shall be filed with the Indenture Trustee but such filing shall not be a condition precedent to the validity of any action taken in reliance
upon such a waiver. 
  
 In case, by reason of the suspension of
regular mail service as a result of a strike, work stoppage or similar activity, it shall be impractical to mail notice of any event to Noteholders when such notice is required to be given pursuant to any provision of this Indenture, then any

  

					
	 	 	59	 	E*Trade 2004-1 Indenture

 
manner of giving such notice as shall be satisfactory to the Indenture Trustee shall be deemed to be a sufficient giving of such notice. 
  
 Where this Indenture provides for notice to the Rating Agencies, failure to
give such notice shall not affect any other rights or obligations created hereunder, and shall not under any circumstance constitute a Default or an Event of Default. 
  
 SECTION 11.6 Alternate Payment and Notice Provisions. Notwithstanding any provision of this Indenture or any
of the Notes to the contrary, the Issuer may enter into any agreement with any Holder of a Note providing for a method of payment, or notice by the Indenture Trustee or any Paying Agent to such Holder, that is different from the methods provided for
in this Indenture for such payments or notices. The Issuer shall furnish to the Indenture Trustee a copy of each such agreement and the Indenture Trustee shall cause payments to be made and notices to be given in accordance with such agreement if it
is administratively acceptable to it. 
  
 SECTION 11.7
Conflict with Trust Indenture Act. If any provision hereof limits, qualifies or conflicts with another provision hereof that is required to be included in this Indenture by any of the provisions of the Trust Indenture Act, such required
provision shall control. 
  
 The provisions of TIA Sections 310
through 317 that impose duties on any person (including the provisions automatically deemed included herein unless expressly excluded by this Indenture) are a part of and govern this Indenture, whether or not physically contained herein. 

 
 SECTION 11.8 Effect of Headings and Table of Contents. The
Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof. 
  
 SECTION 11.9 Successors and Assigns. All covenants and agreements in this Indenture and the Notes by the Issuer shall bind its successors
and assigns, whether so expressed or not. All agreements of the Indenture Trustee in this Indenture shall bind its successors, co-trustees and agents. 
  
 SECTION 11.10 Separability. In case any provision in this Indenture or in the Notes shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
  
 SECTION 11.11 Benefits of Indenture. Nothing in this Indenture or in the Notes, express or implied, shall give to any Person, other than the
parties hereto and their successors hereunder, and the Noteholders, and any other party secured hereunder, and any other Person with an ownership interest in any part of the Trust Estate, any benefit or any legal or equitable right, remedy or claim
under this Indenture. 
  
 SECTION 11.12 Legal
Holidays. In any case where the date on which any payment is due shall not be a Business Day, then (notwithstanding any other provision of the Notes or this Indenture) payment need not be made on such date, but may be made on the next 

  

					
	 	 	60	 	E*Trade 2004-1 Indenture

 
succeeding Business Day with the same force and effect as if made on the date on which nominally due, and no interest shall accrue for the period from and
after any such nominal date. 
  
 SECTION 11.13 GOVERNING
LAW. THIS INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
WITH SUCH LAWS. 
  
 SECTION 11.14 Counterparts.
This Indenture may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. 
  
 SECTION 11.15 Recording of Indenture. If this Indenture is
subject to recording in any appropriate public recording offices, such recording is to be effected by the Issuer and at its expense and the Issuer shall deliver to the Indenture Trustee an Opinion of Counsel to the effect that such recording is
necessary either for the protection of the Noteholders or any other Person secured hereunder or for the enforcement of any right or remedy granted to the Indenture Trustee under this Indenture. 
  
 SECTION 11.16 Trust Obligation. No recourse may be taken,
directly or indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under this Indenture or any certificate or other writing delivered in connection herewith or therewith, against (i) the
Indenture Trustee or the Owner Trustee in its individual capacity, (ii) the Residual Interestholder or any other owner of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, officer, director, employee or agent of the
Indenture Trustee or the Owner Trustee in its individual capacity, the Residual Interestholder or any other holder of a beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or of any successor or assign of the Indenture
Trustee or the Owner Trustee in its individual capacity, except as any such Person may have expressly agreed (it being understood that the Indenture Trustee and the Owner Trustee have no such obligations in their individual capacities) and except
that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity. For all
purposes of this Indenture, in the performance of any duties or obligations of the Issuer hereunder, the Owner Trustee shall be subject to, and entitled to the benefits of, the terms and provisions of Article VI, VII and VIII of
the Trust Agreement. 
  
 SECTION 11.17 No Petition.
The Indenture Trustee, by entering into this Indenture, and each Noteholder, by accepting a Note, and each Note Owner, by accepting a beneficial interest in a Note, hereby covenant and agree that they shall not at any time acquiesce, petition or
otherwise invoke or cause (or join with any other Person in acquiescing, petitioning or otherwise invoking or causing) the Depositor or the Issuer or the Boat Mortgage Trust to invoke the process of any court or government authority for the purpose
of commencing or sustaining a case against the Depositor or the Issuer or the Boat Mortgage Trust 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 

  

					
	 	 	61	 	E*Trade 2004-1 Indenture

 
the Issuer or the Boat Mortgage Trust or any part of the property of the Depositor or the Issuer or the Boat Mortgage Trust, or ordering the winding up or
liquidation of the affairs of the Depositor or the Issuer or the Boat Mortgage Trust. 
  
 SECTION 11.18 No Prohibited Transaction. 
  
 (a) Each investor using the assets of a Benefit Plan which acquires a Class A-1 Asset Backed Note, Class A-2 Asset Backed Note, Class A-3 Asset Backed Note, Class A-4 Asset Backed Note, Class A-5 Asset Backed Note,
Class B Asset Backed Note, Class C Asset Backed Note or Class D Asset Backed Note, or to whom such Notes are transferred by its acceptance and holding of such Notes or an interest therein, will be deemed to represent and warrant that either (i) it
is not acquiring and will not hold such Notes with assets of a Benefit Plan; or (ii) its acquisition and continued holding will not, throughout the term of the holding, result in a non-exempt prohibited transaction under Section 406 of ERISA or
Section 4975 of the Code, or any substantially similar applicable law. 
  
 (b) Each purchaser of a Class E Asset Backed Note will be deemed to have represented, warranted, and covenanted that at the time of purchase and throughout the period that it holds such Notes, either (i) it is not and will not be a Benefit
Plan Investor; or (ii) (A) it is an insurance company general account within the meaning of Prohibited Transaction Class Exemption 95-60, (B) less than 25% of the assets of the general account are assets of a Benefit Plan Investor, and (C) it is not
the servicer, investment manager or any other service provider to the issuer or an affiliate of the above, and would not otherwise be excluded under 29 C.F.R. Section 2510.3-101(f). 
  
 SECTION 11.19 Inspection. The Issuer agrees that, on reasonable prior notice, it shall permit any
representative of the Indenture Trustee, during the Issuer’s normal business hours, to examine all the books of account, records, reports and other papers of the Issuer, to make copies and extracts therefrom, to cause such books to be audited
by Independent certified public accountants, and to discuss the Issuer’s affairs, finances and accounts with the Issuer’s officers, employees and Independent certified public accountants, all at such reasonable times and as often as may be
reasonably requested. 
  
 SECTION 11.20 Submission to
Jurisdiction. Each of the parties hereto hereby irrevocably and unconditionally: 
  
 (a) submits for itself and its property in any legal action or proceeding relating to this Indenture or any other Basic Document or for recognition and enforcement of any judgment in respect thereof, to the
non-exclusive general jurisdiction of the courts of the State of New York, the courts of the United States of America for the Southern District of New York, and appellate courts from any thereof; 
  
 (b) consents that any such action or proceeding may be brought in such courts
and waives any objection that it may now or hereafter have to the venue of such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same; 
  

					
	 	 	62	 	E*Trade 2004-1 Indenture

 (c) agrees that service of process in any such action or proceeding may be effected by mailing a copy
thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to such Person at its address set forth in Section 11.4 or at such other address notified to the other party to this Indenture pursuant
thereto; and 
  
 (d) agrees that nothing herein shall affect the
right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction. 
  
 SECTION 11.21 Subordination of Claims. The Issuer’s obligations under this Indenture are obligations solely of the Issuer and will not
constitute a claim against the Depositor to the extent that the Issuer does not have funds sufficient to make payment of such obligations. In furtherance of and not in derogation of the foregoing and subject to Section 6.04 of the Transfer
and Servicing Agreement, each of the Owner Trustee (in its individual capacity and as the Owner Trustee), by accepting the benefits of this agreement and Indenture Trustee (in its individual capacity and as Indenture Trustee), by entering into this
Indenture, and each Noteholder and each Note Owner, by accepting the benefits of this Indenture, hereby acknowledges and agrees that such Person has no right, title or interest in or to the Other Assets of the Depositor. To the extent that,
notwithstanding the agreements and provisions contained in the preceding sentence, each of the Owner Trustee, the Indenture Trustee and each Noteholder or Note Owner either (i) asserts an interest or claim to, or benefit from, Other Assets, or (ii)
is deemed to have any such interest, claim to, or benefit in or from Other Assets, whether by operation of law, legal process, pursuant to applicable provisions of insolvency laws or otherwise (including by virtue of Section 1111(b) of the
Bankruptcy Code or any successor provision having similar effect under the Bankruptcy Code), then such Person further acknowledges and agrees that any such interest, claim or benefit in or from Other Assets is and will be expressly subordinated to
the indefeasible payment in full, which, under the terms of the relevant documents relating to the securitization or conveyance of such Other Assets, are entitled to be paid from, entitled to the benefits of, or otherwise secured by such Other
Assets (whether or not any such entitlement or security interest is legally perfected or otherwise entitled to a priority of distributions or application under applicable law, including insolvency laws, and whether or not asserted against the
Depositor), including the payment of post-petition interest on such other obligations and liabilities. This subordination agreement will be deemed a subordination agreement within the meaning of Section 510(a) of the Bankruptcy Code. Each of the
Indenture Trustee (in its individual capacity and as the Indenture Trustee), by entering into or accepting this agreement, and the Owner Trustee, and each Noteholder or Note Owner, by accepting the benefits of this Indenture, hereby further
acknowledges and agrees that no adequate remedy at law exists for a breach of this Section and the terms of this Section may be enforced by an action for specific performance. The provisions of this Section will be for the third party benefit of
those entitled to rely thereon and will survive the termination of this Indenture. 
  
 [SIGNATURES FOLLOW] 
  

					
	 	 	63	 	E*Trade 2004-1 Indenture

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

			
	E*TRADE RV AND MARINE TRUST 2004-1
	
	 By: WELLS FARGO BANK MINNESOTA,
 NATIONAL ASSOCIATION, not in its individual
 capacity but solely as Owner Trustee

		
	By:	 	 
	 	 	 Name:
 Title:

	 	 	 
	JPMORGAN CHASE BANK, N.A., not in its individual capacity but solely as Indenture Trustee
		
	By:	 	 
	 	 	 Name:
 Title:

  

					
	 	 	S-1	 	E*Trade 2004-1 Indenture

			
	 STATE OF MINNESOTA
	  	)
	 	  	) ss.:
	 COUNTY OF HENNEPIN
	  	)

  
 BEFORE ME, the
undersigned authority, a Notary Public in and for said county and state, on this day personally appeared                     l, known to me to
be the person and officer whose name is subscribed to the foregoing instrument and acknowledged to me that the same was the act of E*Trade RV and Marine Trust 2004-1, a New York common law trust, and that (s)he executed the same as the act of said
trust for the purpose and consideration therein expressed, and in the capacities therein stated. 
  
 GIVEN UNDER MY HAND AND SEAL OF OFFICE, this      day of December, 2004. 
  

	
	
	 
	 Notary Public in and for the State of Minnesota

  

	
	My commission expires:
	
	  

  

					
	 	 	S-2	 	E*Trade 2004-1 Indenture

			
	 STATE OF NEW YORK
	  	)
	 	  	) ss.:
	 COUNTY OF NEW YORK
	  	)

  
 BEFORE ME, the
undersigned authority, a Notary Public in and for said county and state, on this day personally appeared                     - , known to me
to be the person and officer whose name is subscribed to the foregoing instrument and acknowledged to me that the same was the act of JPMorgan Chase Bank, N.A., a national banking association, and that (s)he executed the same as the act of said
corporation for the purpose and consideration therein stated. 
  
 GIVEN UNDER MY HAND AND SEAL OF OFFICE, this      day of December, 2004. 
  

	
	
	 
	 Notary Public in and for the State of New York.

  

	
	My commission expires:
	
	  

  

					
	 	 	S-3	 	E*Trade 2004-1 Indenture

  
 Schedule I 
  
 In addition to the representations, warranties and covenants contained in the
Indenture, the Issuer hereby represents, warrants, and covenants to the Indenture Trustee as follows on the Closing Date: 
  
 General 
  

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

  

	2.	The Receivables constitute “chattel paper” (including “electronic chattel paper” or “tangible chattel paper”, “accounts,”
“instruments” or “general intangibles”, within the meaning of the UCC. 

  

	3.	Each Receivable is secured by a first priority validly perfected security interest in the related Financed Asset (other than with respect to Federally Documented Boats) in favor of
the Transferor, or with respect to Federally Documented Boats, the Boat Mortgage Trustee, as secured party, or all necessary actions with respect to such Receivable have been taken or will be taken to perfect a first priority security interest in
the related Financed Assets (other than with respect to Federally Documented Boats) in favor of the Transferor, or with respect to Federally Documented Boats, the Boat Mortgage Trustee as secured party. 

  

	4.	Paragraph 3 above will also apply to all Federally Documented Boats with 90 days of the Closing Date. 

  

	5.	Each Trust Account constitutes either a “deposit account” or a “securities account” within the meaning of the UCC. 

  
 Creation 
  

	6.	Immediately prior to the sale, transfer, assignment and conveyance of a Receivable by the Depositor to the Issuer, the Depositor owned and had good and marketable title to such
Receivable free and clear of any lien and immediately after the sale, transfer, assignment and conveyance of such Receivable to the Issuer, the Issuer will have good and marketable title to such Receivable free and clear of any lien.

  
 Perfection 
  

	7.	 The Issuer has caused or will have caused, within ten days after the effective date of this Indenture, the filing of all appropriate financing statements in the
proper filing office in the appropriate jurisdictions under applicable law in order to perfect the security interest in the Receivables granted to the Indenture Trustee hereunder; and the Servicer has in its possession the original copies of such
instruments or tangible chattel paper that constitute or evidence the Receivables, and all financing statements referred to in this paragraph 

  

					
	 	 	S-1	 	E*Trade 2004-1 Indenture

	 	 
contain a statement that: “A purchase of or security interest in any collateral described in this financing statement will violate the rights of the
Secured Party”. 

  

	8.	With respect to Receivables that constitute instruments or tangible chattel paper, either: 

  
 (i) All original executed copies of each such instrument or tangible chattel paper have been delivered to the Indenture
Trustee; or 
  
 (ii) Such instruments or tangible chattel paper
are in the possession of the Servicer and the Indenture Trustee has received a written acknowledgment from the Servicer that the Servicer is holding such instruments or tangible chattel paper solely on behalf and for the benefit of the Indenture
Trustee; or 
  
 (iii) The Servicer received possession of such
instruments or tangible chattel paper after the Indenture Trustee received a written acknowledgment from the Servicer that the Servicer is acting solely as agent of the Indenture Trustee. 
  

	9.	With respect to the Trust Accounts that constitutes deposit accounts, either: 

  

(i) the Issuer has delivered to the Indenture Trustee a fully executed agreement pursuant to which the bank maintaining the deposit accounts has agreed
to comply with all instructions originated by the Indenture Trustee directing disposition of the funds in such Trust Accounts without further consent by the Issuer; or 
  
 (ii) the Issuer has taken all steps necessary to cause the Indenture Trustee to become the account holder of such Trust
Accounts. 
  

	10.	With respect to the Trust Accounts that constitute securities accounts or securities entitlements, either: 

  
 (i) the Issuer has delivered to the Indenture Trustee a fully executed
agreement pursuant to which the securities intermediary has agreed to comply with all instructions originated by the Indenture Trustee relating to such Trust Accounts without further consent by the Issuer; or 
  
 (ii) the Issuer has taken all steps necessary to cause the securities
intermediary to identify in its records the Indenture Trustee as the person having a security entitlement against the securities intermediary in each of such Trust Accounts. 
  
 Priority 
  

	11.	The Issuer has not authorized the filing of, or is aware of, any financing statements against the Issuer that include a description of collateral covering the Collateral other than
any financing statement (i) relating to the conveyance of the Collateral by Transferor to the Seller under the Depositor Sale Agreement, (ii) relating to the conveyance of the Receivables by the Depositor to the Issuer under the Transfer and
Servicing Agreement, (iii) relating to the security interest granted to the Indenture Trustee hereunder or (iv) that has been terminated. 

  

					
	 	 	S-2	 	E*Trade 2004-1 Indenture

	12.	The Issuer is not aware of any material judgment, ERISA or tax lien filings against the Issuer. 

  

	13.	Neither the Issuer nor a custodian holding any Receivable that is electronic chattel paper has communicated an authoritative copy of any loan agreement that constitutes or evidences
such Receivable to any Person other than the Servicer. 

  

	14.	None of the instruments, tangible chattel paper or electronic chattel paper that constitute or evidence the Receivables has any marks or notations indicating that they have been
pledged, assigned or otherwise conveyed to any Person other than the Issuer or the Indenture Trustee. 

  

	15.	No Trust Account that constitutes a securities account or securities entitlement is in the name of any person other than the Issuer or the Indenture Trustee. The Issuer has not
consented to the securities intermediary of any such Trust Account to comply with entitlement orders of any person other than the Indenture Trustee. 

  

	16.	No Trust Account that constitutes a deposit account is in the name of any person other than the Issuer or the Indenture Trustee. The Issuer has not consented to the bank maintaining
such Trust Account to comply with instructions of any person other than the Indenture Trustee. 

  

	17.	Survival of Perfection Representations. Notwithstanding any other provision of this Indenture or any other Basic Document, the perfection representations, warranties and covenants
contained in this Schedule I shall be continuing, and remain in full force and effect until such time as all obligations under this Indenture have been finally and fully paid and performed. 

  

	18.	No Waiver. The Issuer shall provide the Rating Agencies with prompt written notice of any breach of the perfection representations, warranties and covenants contained in this
Schedule I, and shall not, without satisfying the Rating Agency Condition, waive a breach of any of such perfection representations, warranties or covenants. 

  
 Issuer to Maintain Perfection and Priority. The Issuer covenants that, in order to evidence the interests of the Indenture Trustee under
this Indenture, the Issuer shall take such action, or execute and deliver such instruments as may be necessary or advisable (including, without limitation, such actions as are requested by the Indenture Trustee) to maintain and perfect, as a first
priority interest, the Indenture Trustee’s security interest in the Receivables. The Issuer shall, from time to time and within the time limits established by law, prepare and file, all financing statements, amendments, continuations, initial
financing statements in lieu of a continuation statement, terminations, partial terminations, releases or partial releases, or any other filings necessary or advisable to continue, maintain and perfect the Indenture Trustee’s security interest
in the Receivables as a first-priority interest. 
  

					
	 	 	S-3	 	E*Trade 2004-1 Indenture

 EXHIBIT A 
  
 (FORM OF NOTE) 
  

					
	 	 	 	 	E*Trade 2004-1 Indenture

 UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
(“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL IN AS MUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  
 THE PRINCIPAL OF THIS NOTE IS
PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. 
  
 [For Class B Notes Only: THIS CLASS B NOTE IS SUBORDINATED TO THE CLASS A NOTES AS CONTEMPLATED BY THE INDENTURE REFERRED TO BELOW.]

  
 [For Class C Notes Only: THIS CLASS C NOTE IS SUBORDINATED TO THE CLASS A
NOTES AND THE CLASS B NOTES AS CONTEMPLATED BY THE INDENTURE REFERRED TO BELOW.] 
  
 [For Class D Notes Only: THIS CLASS D NOTE IS SUBORDINATED TO THE CLASS A NOTES, THE CLASS B NOTES AND THE CLASS C NOTES AS CONTEMPLATED BY THE INDENTURE REFERRED TO BELOW.] 
  
 [For Class E Notes Only: THIS CLASS E NOTE IS SUBORDINATED TO THE CLASS A NOTES, THE CLASS B NOTES, THE CLASS C NOTES AND THE CLASS D NOTES
AS CONTEMPLATED BY THE INDENTURE REFERRED TO BELOW. ] 
  
 [For Class E NotesOnly:
THIS CLASS E NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES OR BLUE SKY LAWS OF ANY STATE IN THE UNITED STATES OR ANY FOREIGN
SECURITIES LAWS. BY ITS ACCEPTANCE OF THIS CLASS E NOTE (OR INTEREST THEREIN) THE HOLDER OF THIS CLASS E NOTE (OR SUCH INTEREST) IS DEEMED TO REPRESENT TO THE DEPOSITOR AND THE INDENTURE TRUSTEE THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER”
AS DEFINED IN RULE l44A UNDER THE SECURITIES ACT AND IS ACQUIRING THIS CLASS E NOTE (OR INTEREST THEREIN) FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QUALIFIED INSTITUTIONAL
BUYERS). 
  
 NO SALE, PLEDGE OR OTHER TRANSFER OF THIS CLASS E
NOTE (OR INTEREST THEREIN) MAY BE MADE BY ANY PERSON UNLESS EITHER (i) SUCH SALE, PLEDGE OR OTHER TRANSFER IS MADE TO THE DEPOSITOR, (ii) SO LONG AS THIS CLASS E NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE l44A UNDER THE 

  

					
	 	 	 	 	E*Trade 2004-1 Indenture

 
SECURITIES ACT, SUCH SALE, PLEDGE OR OTHER TRANSFER IS MADE TO A PERSON WHOM THE TRANSFEROR REASONABLY BELIEVES AFTER DUE INQUIRY IS A “QUALIFIED
INSTITUTIONAL BUYER” (AS DEFINED IN RULE l44A), ACTING FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QUALIFIED INSTITUTIONAL BUYERS) TO WHOM NOTICE IS GIVEN THAT THE SALE,
PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (iii) SUCH SALE, PLEDGE OR OTHER TRANSFER IS OTHERWISE MADE IN A TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, IN WHICH CASE (A) THE INDENTURE TRUSTEE
SHALL REQUIRE THAT BOTH THE PROSPECTIVE TRANSFEROR AND THE PROSPECTIVE TRANSFEREE CERTIFY TO THE INDENTURE TRUSTEE AND THE DEPOSITOR IN WRITING THE FACTS SURROUNDING SUCH TRANSFER, WHICH CERTIFICATION SHALL BE IN FORM AND SUBSTANCE SATISFACTORY TO
THE INDENTURE TRUSTEE AND THE DEPOSITOR, AND (B) THE INDENTURE TRUSTEE SHALL REQUIRE A WRITTEN OPINION OF COUNSEL (WHICH SHALL NOT BE AT THE EXPENSE OF THE SERVICER OR THE INDENTURE TRUSTEE) SATISFACTORY TO THE DEPOSITOR AND THE INDENTURE TRUSTEE TO
THE EFFECT THAT SUCH TRANSFER WILL NOT VIOLATE THE SECURITIES ACT.] 
  
 [For Class
E Notes Only: Each Noteholder, by acceptance of a Note, or in the case of a Note Owner, a beneficial interest in a Note, hereby represents and warrants that: 
  
 (a) it (i) is not, and will not become, a partnership, Subchapter S corporation or grantor trust for U.S. federal income tax purposes or (ii) is such an
entity and at all times the value of any Class E Notes that it holds or beneficially owns represents, or will represent, less than 50% of the value of all of its assets and at no time will any Class E Notes that it holds or beneficially owns be
disproportionately represented (in relation to its other assets) in the value of any of its ownership interests; 
  
 (b) it did not acquire, and will not transfer, any Class E Note (or any interest therein) or cause any Class E Notes (or any interest therein) to be
marketed on or through an “established securities market” within the meaning of section 7704(b)(1) of the Code, including, without limitation, an over-the-counter market or an interdealer quotation system that regularly disseminates firm
buy or sell quotations; 
  
 (c) it is a person who is, for U.S.
federal income tax purposes, (i) a citizen or resident of the United States, (ii) a corporation or partnership organized in or under the laws of the United States or any state (or the District of Columbia), (iii) an estate the income of which is
subject to U.S. federal income tax, regardless of source or (iv) a trust if a court within the United States is able to exercise primary supervision over the administration of such trust and one or more persons described in this paragraph have the
authority to control all substantial decisions of such trust. Each Noteholder hereby agrees to provide certification of non-foreign status, in such form as may be requested by the Issuer, signed under penalties of perjury (and such other
certification, representations or opinion of counsel as may be requested by the Issuer); and 
  
 (d) at the time of purchase and throughout the period that it holds the Class E Note, either (i) it is not and will not be a Benefit Plan Investor as described in the Indenture; or (ii) (A) it is an insurance company
general account within the meaning of Prohibited Transaction Class 

  

					
	 	 	 	 	E*Trade 2004-1 Indenture

 
Exemption 95-60, (B) less than 25% of the assets of the general account are assets of a Benefit Plan Investor, and (C) it is not the servicer, investment
manager or any other service provider to the issuer or an affiliate of the above, and would not otherwise be excluded under 29 C.F.R. Section 2510.3-101(f). 
  
 Each Noteholder, be acceptance of a Note, or in the case of a Note Owner, a beneficial interest in a Note, acknowledges that the representations and
warranties provided in paragraphs (a) through (c) above generally are intended to prevent the Issuer from being characterized as a “publicly traded partnership” within the meaning of section 7704 of the Code, in reliance on Treasury
Regulations sections 1.7704-1(e) and (h).] 
  
 REGISTERED 
 $                     
  
 Class          Interest Rate:
      % 
  
 CUSIP Number:
                     
 ISIN Number:
                     
  
 No. R-         
  

					
	 	 	 	 	E*Trade 2004-1 Indenture

  
 E*TRADE RV AND MARINE TRUST
2004-1 
  
 CLASS [        ]
ASSET BACKED NOTES 
  
 E*Trade RV and Marine Trust 2004-1, a New
York common law trust (herein referred to as the “Issuer”), for value received, hereby promises to pay to                     , or
registered assigns, the principal sum of                      DOLLARS payable on each Payment Date in an amount equal to the result obtained
by multiplying (i) a fraction the numerator of which is the outstanding principal balance of this Note and the denominator of which is the aggregate outstanding principal balance of the Notes of this Class by (ii) the aggregate amount, if any,
payable from the Principal Distribution Account in respect of principal on the Notes of this Class pursuant to the Indenture dated as of December 16, 2004 (the “Indenture”), between the Issuer and JPMorgan Chase Bank, N.A., a
national banking association, as Indenture Trustee (the “Indenture Trustee”); provided, however, that the entire unpaid principal amount of this Note shall be due and payable on the earlier of the Stated Maturity Date of this Class and the
Redemption Date, if any. Capitalized terms used but not defined herein are as defined in or by reference in the Indenture, which also contains rules as to construction that shall be applicable herein. 
  
 The Issuer shall pay interest on this Note at the rate per annum shown above
on each Payment Date until the principal of this Note is paid or made available for payment, on the principal amount of this Note outstanding on the preceding Payment Date (after giving effect to all payments of principal made on the preceding
Payment Date), subject to certain limitations contained in the Indenture. Interest on this Note shall accrue for each Payment Date from and including the [    ] day of the preceding calendar month (or in the case of the
first Payment Date, from and including the Closing Date) to and including the day preceding the [    ] day of the current calendar month. (Interest shall be computed on the basis of a 360-day year consisting of twelve
30-day months.) Such principal of and interest on this Note shall be paid in the manner specified on the reverse hereof. 
  
 The principal of and interest on this Note are payable in such coin or currency of the United States of America as at the time of payment is legal tender
for payment of public and private debts. All payments made by the Issuer with respect to this Note shall be applied first to interest due and payable on this Note as provided above and then to the unpaid principal of this Note. 
  
 Reference is made to the further provisions of this Note set forth on the
reverse hereof, which shall have the same effect as though fully set forth on the face of this Note. 
  
 Unless the certificate of authentication hereon has been executed by the Indenture Trustee whose name appears below by manual signature, this Note shall
not be entitled to any benefit under the Indenture, or be valid or obligatory for any purpose. 
  

					
	 	 	 	 	E*Trade 2004-1 Indenture

 IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its
Authorized Officer, as of the date set forth below. 
  
 Date:                     
  

			
	E*TRADE RV AND MARINE TRUST 2004-1,
	
	 By: WELLS FARGO BANK NATIONAL ASSOCIATION,
 not in its individual capacity but solely
 as Owner Trustee under the Trust Agreement

		
	By:	 	 
	 	 	 Authorized Officer

  

					
	 	 	 	 	E*Trade 2004-1 Indenture

  
 TRUSTEE’S CERTIFICATE OF
AUTHENTICATION 
  
 This is one of the Notes designated above and referred to in
the within-mentioned Indenture. 
  

									
	 Date:            
	 	 	 	 JPMorgan Chase Bank, N.A., not in its individual
 capacity but solely as Indenture Trustee

					
	 	 	 	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 	 	 Authorized Officer

  

					
	 	 	 	 	E*Trade 2004-1 Indenture

 This Note is one of a duly authorized issue of Notes of the Issuer, issued under the Indenture, to which
Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes. The Notes are subject to all terms of
the Indenture. In the event of any conflict or inconsistency between this Note and the Indenture, the Indenture shall govern in all respects. 
  
 Payments on this Note, shall be made in accordance with the Indenture. Any reduction in the principal amount of this Note (or any one or more predecessor
Notes) effected by any payments made on any Payment Date shall be binding upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon.

  
 The Issuer shall pay interest on overdue installments of
interest at the Interest Rate for this Class to the extent lawful. 
  
 The transfer and exchange of this Note are subject to the terms of the Indenture. 
  
 Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note, covenants and agrees that no recourse may be taken, directly or indirectly, with respect to the
obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under the Indenture or any certificate or other writing delivered in connection therewith, against (i) the Indenture Trustee or the Owner Trustee in its individual
capacity, (ii) the Residual Interestholder or any other owner of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, officer, director, employee or agent of the Indenture Trustee or the Owner Trustee in its individual
capacity, the Residual Interestholder or any other holder of a beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee in its individual capacity,
except as any such Person may have expressly agreed (it being understood that the Indenture Trustee and the Owner Trustee have no such obligations in their individual capacities) and except that any such partner, owner or beneficiary shall be fully
liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity. 
  
 Each investor using the assets of a Benefit Plan which acquires a Class A-1 Asset Backed Note, Class A-2 Asset Backed Note,
Class A-3 Asset Backed Note, Class A-4 Asset Backed Note, Class A-5 Asset Backed Note, Class B Asset Backed Note, Class C Asset Backed Note or Class D Asset Backed Note, or to whom such Notes are transferred by its acceptance and holding of such
Notes or an interest therein, will be deemed to represent and warrant that either (i) it is not acquiring and will not hold such Notes with assets of a Benefit Plan; or (ii) its acquisition and continued holding will not, throughout the term of the
holding, result in a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code, or any substantially similar applicable law. 
  
 Each purchaser of a Class E Asset Backed Note will be deemed to have represented, warranted, and covenanted that at the time of purchase and throughout
the period that it holds such Notes, either (i) it is not and will not be a Benefit Plan Investor; or (ii) (A) it is an insurance 

  

					
	 	 	 	 	E*Trade 2004-1 Indenture

 
company general account within the meaning of Prohibited Transaction Class Exemption 95-60, (B) less than 25% of the assets of the general account are assets
of a Benefit Plan Investor, and (C) it is not the servicer, investment manager or any other service provider to the issuer or an affiliate of the above, and would not otherwise be excluded under 29 C.F.R. Section 2510.3-101(f). 
  
 Each Noteholder, by accepting a Note, and each Note Owner, by accepting a
beneficial interest in a Note, covenants and agrees that such Noteholder and Note Owner shall not at any time acquiesce, petition or otherwise invoke or cause (or join with any other Person in acquiescing, petitioning or otherwise invoking or
causing) the Depositor or the Issuer to invoke the process of any court or government authority for the purpose of commencing or sustaining a case against the Depositor or the Issuer or the Boat Mortgage Trust 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 the Issuer or the Boat Mortgage Trust or any substantial part of the property of the Depositor
or the Issuer or the Boat Mortgage Trust, or ordering the winding up or liquidation of the affairs of the Depositor or the Issuer or the Boat Mortgage Trust. 
  
 The Issuer has entered into the Indenture and this Note is issued with the intention that, for all purposes, including federal, state and local income,
single business and franchise tax purposes, the Notes shall qualify as indebtedness of the Issuer secured by the Trust Estate. Each Noteholder, by acceptance of a Note (and each Note Owner by acceptance of a beneficial interest in a Note), agrees to
treat the Notes for all purposes, including federal, state and local income, single business and franchise tax purposes, as indebtedness of the Issuer. 
  
 Prior to the due presentment for registration of transfer of this Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Note is registered (as of the day of determination or as of such other date as may be specified in the Indenture) as the owner hereof for the purpose of receiving payments of principal of and interest,
if any, on this Note and for all other purposes whatsoever, whether or not this Note be overdue, and none of the Issuer, the Indenture Trustee or any agent of the Issuer or the Indenture Trustee shall be affected by notice to the contrary.

  
 The term “Issuer” as used in this Note includes any
successor to the Issuer under the Indenture. 
  
 This Note and the
Indenture shall be construed in accordance with the laws of the State of New York, without reference to its conflict of law provisions, and the obligations, rights and remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws. 
  
 No reference herein to the
Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and in the coin or
currency contemplated by the Indenture and this Note. 
  

					
	 	 	 	 	E*Trade 2004-1 Indenture

 Anything herein to the contrary notwithstanding, except as expressly provided in the Basic Documents,
none of JPMorgan Chase Bank, N.A., in its individual capacity, Wells Fargo Bank Minnesota, National Association, in its individual capacity, the Residual Interestholder or any other owner of a beneficial interest in the Issuer, or any of their
respective partners, beneficiaries, agents, officers, directors, employees or successors or assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of or interest on this Note or performance of,
or failure to perform, any of the covenants, obligations or indemnifications contained in the Indenture. The Holder of this Note by its acceptance hereof (and each Note Owner, by accepting a beneficial interest in this Note) agrees that, except as
expressly provided in the Basic Documents, in the case of an Event of Default under the Indenture, no claim shall be had against any of the foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing contained herein shall
be taken to prevent recourse to, and enforcement against, the assets of the Issuer for any and all liabilities, obligations and undertakings contained in the Indenture or in this Note. 
  

					
	 	 	 	 	E*Trade 2004-1 Indenture

  
 ASSIGNMENT 
  
 Social Security or taxpayer I.D. or other identifying number of assignee: 
  
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto:

  

 (name and
address of assignee) 
  
 the within Note and all rights thereunder, and hereby
irrevocably constitutes and appoints              attorney, to transfer said Note on              the
books kept for registration thereof, with full power of substitution in the premises. 
  

					
			
	 Dated:
	 	 	 	*/ _________________________________________
	 	 	 	 	Signature Guaranteed:
			
	 	 	 	 	*/ */

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

					
	 	 	 	 	E*Trade 2004-1 Indenture

  
 EXHIBIT B 

 
 RULE 144A CERTIFICATE 
  
 ETCF Asset Funding Corporation 
 3355 Michelson Drive 
 Suite 350 
 Irvine, CA 92512 
  
 JPMorgan Chase Bank, N.A. 
 as Indenture Trustee 
 4 New York Plaza 
 6th Floor 
 New York, NY 10004 
  
 Ladies and Gentlemen: 
  
 In connection with the
purchase of the Class E Asset Backed Note, (the “Class E Notes”) of the E*TRADE RV and Marine Trust 2004-1, the undersigned buyer (“Buyer”) hereby acknowledges, represents and agrees that: 
  
 Buyer is a “qualified institutional buyer” as defined under Rule
144A (“Rule 144A”) under the Securities Act of 1933, as amended (the “Securities Act”), acting for its own account or for the accounts of other “qualified institutional buyers” as defined under Rule 144A under
the Securities Act. Buyer is familiar with Rule 144A under the Securities Act and Buyer is aware that the seller of the applicable Class E Notes to the Buyer and other parties intend to rely on the statements made herein and the exemption from the
registration requirements of the Securities Act provided by Rule 144A. 
  
 Buyer is purchasing the Class E Notes for its own account (or the accounts of other “qualified institutional buyers”), not with a view to, or for offer or sale in connection with, any distribution thereof, subject to the
disposition of Buyer’s property (or property held in the accounts of other “qualified institutional buyers”) being at all times within Buyer’s control and subject to Buyer’s ability to resell such Class E Notes pursuant to
Rule 144A under the Securities Act. Buyer agrees to offer, sell or otherwise transfer such Class E Notes only in conformity with the restrictions on transfer set forth in the Indenture dated as of December 16, 2004 pursuant to which the Class E
Notes were issued and the legend set forth on the such Note evidencing the Class E Notes. 
  

					
	 	 	 	 	E*Trade 2004-1 Indenture

 Buyer acknowledges that you and others will rely upon its confirmations, acknowledgments and agreements
set forth herein, and Buyer agrees to notify you promptly in writing if any of the information herein ceases to be accurate and complete. 
  

			
	 
	Print Name of Buyer
		
	By:	 	 
		
	 Name:
	 	 
		
	 Title:
	 	 
		
	 Date:
	 	 

  

					
	 	 	 	 	E*Trade 2004-1 IndentureTransfer and Servicing Agreement dated December 16, 2004

  
 Exhibit 10.1

  
 Execution Version 
  
 TRANSFER AND SERVICING AGREEMENT 
  
 among 
  
 E*TRADE RV AND MARINE TRUST 2004-1 
 as Issuer, 
  
 ETCF ASSET FUNDING
CORPORATION, 
 as Depositor 
  
 and 
  
 E*TRADE CONSUMER FINANCE CORPORATION, 
 as Servicer 
  
 Dated as of December 16, 2004 

  
 TABLE OF CONTENTS

  

					
	 	 	 	  	Page

	 ARTICLE I
	 	 Definitions
	  	1
			
	 SECTION 1.01
	 	 Definitions
	  	1
			
	 SECTION 1.02
	 	 Other Definitional Provisions
	  	1
			
	 ARTICLE II
	 	 Contribution of Receivables
	  	2
			
	 SECTION 2.01
	 	 Sale
	  	2
			
	 SECTION 2.02
	 	 Intent of the Parties
	  	2
			
	 ARTICLE III
	 	 The Receivables
	  	3
			
	 SECTION 3.01
	 	 Representations and Warranties with Respect to the Receivables
	  	3
			
	 SECTION 3.02
	 	 Custody of Receivable Files
	  	4
			
	 SECTION 3.03
	 	 Duties of Servicer as Custodian
	  	5
			
	 SECTION 3.04
	 	 Instructions; Authority To Act
	  	6
			
	 SECTION 3.05
	 	 Custodian’s Indemnification
	  	6
			
	 SECTION 3.06
	 	 Effective Period and Termination
	  	6
			
	 ARTICLE IV
	 	 Administration and Servicing of Receivables
	  	7
			
	 SECTION 4.01
	 	 Duties of Servicer
	  	7
			
	 SECTION 4.02
	 	 Collection and Application of Receivable Payments
	  	7
			
	 SECTION 4.03
	 	 Realization upon Receivables
	  	8
			
	 SECTION 4.04
	 	 Physical Damage Insurance
	  	8
			
	 SECTION 4.05
	 	 Maintenance of Security Interests in Financed Assets
	  	8
			
	 SECTION 4.06
	 	 Covenants of Servicer
	  	9
			
	 SECTION 4.07
	 	 Purchase of Receivables upon Breach
	  	9
			
	 SECTION 4.08
	 	 Servicing Fee
	  	9
			
	 SECTION 4.09
	 	 Servicer’s Certificate
	  	10
			
	 SECTION 4.10
	 	 Annual Statement as to Compliance; Notice of Default
	  	10
			
	 SECTION 4.11
	 	 Annual Independent Certified Public Accountants’ Report
	  	10
			
	 SECTION 4.12
	 	 Access to Certain Documentation and Information Regarding Receivables
	  	11
			
	 SECTION 4.13
	 	 Servicer Expenses
	  	11
			
	 SECTION 4.14
	 	 Appointment of Subservicer
	  	11
			
	 SECTION 4.15
	 	 Fidelity Bond; Errors and Omissions Insurance
	  	12

  

 i 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	 	 	  	Page

	 SECTION 4.16
	 	 1934 Act Filings
	  	12
			
	 ARTICLE V
	 	 Trust Accounts; Collections; Advances; Distributions; Statements to Noteholders
	  	12
			
	 SECTION 5.01
	 	 Establishment of Trust Accounts
	  	12
			
	 SECTION 5.02
	 	 Collections
	  	16
			
	 SECTION 5.03
	 	 Application of Collections
	  	17
			
	 SECTION 5.04
	 	 Advances
	  	17
			
	 SECTION 5.05
	 	 Additional Deposits
	  	17
			
	 SECTION 5.06
	 	 Distributions
	  	18
			
	 SECTION 5.07
	 	 Reserve Account
	  	18
			
	 SECTION 5.08
	 	 Statements to Noteholders
	  	18
			
	 ARTICLE VI
	 	 The Depositor
	  	19
			
	 SECTION 6.01
	 	 Representations of Depositor
	  	19
			
	 SECTION 6.02
	 	 Corporate Existence
	  	20
			
	 SECTION 6.03
	 	 Liability of the Depositor
	  	21
			
	 SECTION 6.04
	 	 Indemnification
	  	21
			
	 SECTION 6.05
	 	 Merger or Consolidation of, or Assumption of the Obligations of, Depositor
	  	22
			
	 SECTION 6.06
	 	 Limitation on Liability of Depositor and Others
	  	22
			
	 SECTION 6.07
	 	 Depositor May Own Notes
	  	23
			
	 SECTION 6.08
	 	 Notice of Events
	  	23
			
	 SECTION 6.09
	 	 Sarbanes-Oxley Act Requirements
	  	23
			
	 ARTICLE VII
	 	 The Servicer
	  	23
			
	 SECTION 7.01
	 	 Representations and Warranties of the Servicer
	  	23
			
	 SECTION 7.02
	 	 Indemnities, etc. of Servicer
	  	24
			
	 SECTION 7.03
	 	 Merger or Consolidation of, or Assumption of the Obligations of, Servicer
	  	25
			
	 SECTION 7.04
	 	 Limitation on Liability of Servicer and Others
	  	26
			
	 SECTION 7.05
	 	 Resignation of Servicer
	  	26
			
	 ARTICLE VIII
	 	 Servicer Default
	  	27
			
	 SECTION 8.01
	 	 Servicer Default
	  	27

  

 ii 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	 	 	  	Page

	 SECTION 8.02
	 	 Appointment of Successor
	  	28
			
	 SECTION 8.03
	 	 Repayment of Advances
	  	29
			
	 SECTION 8.04
	 	 Notification to Noteholders
	  	29
			
	 SECTION 8.05
	 	 Waiver of Past Servicer Defaults
	  	29
			
	 ARTICLE IX
	 	 Termination
	  	29
			
	 SECTION 9.01
	 	 Optional Purchase of All Receivables
	  	29
			
	 SECTION 9.02
	 	 Termination of Obligations
	  	30
			
	 ARTICLE X
	 	 Miscellaneous
	  	30
			
	 SECTION 10.01
	 	 Amendment
	  	30
			
	 SECTION 10.02
	 	 Protection of Title to Trust; Change of Name, Identity, Corporate Structure or Location of the Depositor, Etc.
	  	31
			
	 SECTION 10.03
	 	 Notices
	  	33
			
	 SECTION 10.04
	 	 Assignment
	  	33
			
	 SECTION 10.05
	 	 Limitations on Rights of Others
	  	33
			
	 SECTION 10.06
	 	 Severability
	  	33
			
	 SECTION 10.07
	 	 Separate Counterparts
	  	33
			
	 SECTION 10.08
	 	 Headings
	  	34
			
	 SECTION 10.09
	 	 Governing Law
	  	34
			
	 SECTION 10.10
	 	 Nonpetition Covenants
	  	34
			
	 SECTION 10.11
	 	 Limitation of Liability of Owner Trustee and Indenture Trustee
	  	34
			
	 SECTION 10.12
	 	 [Reserved]
	  	35
			
	 SECTION 10.13
	 	 Separate Corporate Existence
	  	35
			
	 SECTION 10.14
	 	 Submission to Jurisdiction
	  	37
			
	 SECTION 10.15
	 	 Tax Treatment
	  	37
			
	 SECTION 10.16
	 	 Subordination of Claims
	  	37

  

 iii 

			
	 APPENDIX A
	  	Definitions (Section 1.01)
	 SCHEDULE A
	  	Schedule of Receivables
	 SCHEDULE B
	  	Location of the Receivable Files (Section 3.03(b))
	 EXHIBIT A
	  	Form of Payment Date Statement to Noteholders (Section 5.08)
	 EXHIBIT B
	  	Form of Servicer’s Certificate (Section 4.09)
	 EXHIBIT C
	  	Final Certification of Custodian (Section 3.02)

  

 iv 

 INTRODUCTORY STATEMENT 
  
 TRANSFER AND SERVICING AGREEMENT dated as of December 16, 2004 (this “Agreement”), among E*TRADE RV AND
MARINE TRUST 2004-1, a New York common law trust, as Issuer, ETCF ASSET FUNDING CORPORATION, a Nevada corporation, as Depositor (the “Depositor”), and E*TRADE CONSUMER FINANCE CORPORATION, a Delaware corporation (“E*Trade
Consumer Finance”), as Servicer. 
  
 WHEREAS, the Issuer
desires to purchase Receivables from the Depositor; 
  
 WHEREAS,
the Depositor is willing to sell such Receivables to the Issuer; and 
  
 WHEREAS, the Depositor acquired such Receivables from the Transferor pursuant to the Depositor Sale Agreement. 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

  
 ARTICLE I 
  
 Definitions 
  
 SECTION 1.01 Definitions. Except as otherwise specified herein or as
the context may otherwise require, capitalized terms used herein (including in the recitals hereto) have the respective meanings assigned thereto in Appendix A for all purposes of this Agreement. 
  
 SECTION 1.02 Other Definitional Provisions. 
  
 (a) All terms defined in Appendix A shall have the defined meanings
when used in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein. 
  
 (b) As used in this Agreement and in any certificate or other document made or delivered pursuant hereto, accounting terms not defined in this Agreement
or in any such certificate or other document, and accounting terms partly defined in this Agreement or in any such certificate or other document to the extent not defined, shall have the respective meanings given to them under generally accepted
accounting principles. To the extent that the definitions of accounting terms in this Agreement or in any such certificate or other document are inconsistent with the meanings of such terms under generally accepted accounting principles, the
definitions contained in this Agreement or in any such certificate or other document shall control. 
  
 (c) 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; Article, Section, Schedule and Exhibit references contained in this Agreement are references to Articles, Sections, Schedules and Exhibits in or to this Agreement 

  

					
	 	 	1	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

 
unless otherwise specified; the term “including” shall mean “including”; the word “or” is not exclusive. 
  
 (d) 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. 
  
 (e) Any agreement, instrument or statute defined or referred to herein or in any instrument or certificate delivered in connection herewith means such
agreement, instrument or statute as from time to time amended, amended and restated or otherwise modified from time to time, and includes (in the case of agreements or instruments) references to all attachments thereto and instruments incorporated
therein; references to a Person are also to its permitted successors and assigns. 
  
 (f) Each reference to the “close of business” on a particular day shall mean 5:00 p.m. Eastern Time on such day. 
  
 ARTICLE II 
  
 Contribution of Receivables 
  
 SECTION 2.01 Sale. The Depositor does hereby sell, transfer, assign, set over and otherwise convey to the Issuer, without recourse (subject to the obligations of the Depositor set forth herein), and the Issuer
hereby purchases from the Depositor, all right, title and interest of the Depositor in, to and under (but none of the obligations of the Depositor under): 
  
 (a) the Receivables and the other Transferor Sold Property; 
  
 (b) the Depositor Sale Agreement; and 
  
 (c) the proceeds of any and all of the foregoing. 
  
 The Receivables and other items covered by clauses (a) through (c) of this Section 2.01 shall be referred to collectively as the
“Depositor Conveyed Property”. In consideration for the transfer of the Depositor Conveyed Property, the Issuer agrees to issue the Notes for the benefit of the Depositor and deliver such Notes to, or at the direction of, the
Depositor for its further disposition under the Underwriting Agreement. If for any reason the conveyance described above, shall not be treated as a sale, the Depositor and Issuer agree that such conveyance will be, and such conveyance shall be, a
capital contribution by the Depositor to the Issuer. No Receivables will be subsequently transferred by the Depositor to the Issuer after the Closing Date. 
  
 SECTION 2.02 Intent of the Parties. 
  
 (a) The Depositor and the Issuer intend that the conveyance by the Depositor to the Issuer of the right, title and interest of the Depositor in, to and
under the Receivables and the other Depositor Conveyed Property pursuant to this Agreement shall constitute a sale or capital 

  

					
	 	 	2	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

 
contribution and not a loan. However, in the event that, notwithstanding the intent of the parties, such conveyance is deemed to be a transfer for security
and not a sale or capital contribution, then (i) the Depositor shall be deemed to have granted, and in such event does hereby grant, to the Issuer to secure Depositor’s obligations hereunder a first priority security interest in all of its
right, title and interest in, to and under the Depositor Conveyed Property, and (ii) this Agreement shall constitute a security agreement under applicable law with respect to such conveyance. If such conveyance is deemed to be a transfer for
security and not a sale or capital contribution, the Depositor consents to the Issuer hypothecating and transferring such security interest in favor of any assignee or assignees and transferring the obligations secured thereby to such assignee or
assignees. 
  
 (b) No party hereto shall take any action that is
inconsistent with the ownership of the Depositor Conveyed Property by the Issuer, and each party hereto shall inform any Person inquiring about the Receivables that the Issuer owns the Depositor Conveyed Property. Without limiting the generality of
the foregoing, for accounting and other purposes (other than tax) the Depositor and the Issuer shall treat the transfer of the Depositor Conveyed Property by the Depositor to the Issuer as a sale by the Depositor to the Issuer. Notwithstanding any
other provision of this Agreement, no Person shall have any recourse to E*Trade Consumer Finance, the Transferor, the Depositor or the Servicer on account of the financial inability of any Obligor to make payments in respect of a Receivable.

  
 ARTICLE III 
  
 The Receivables 
  
 SECTION 3.01 Representations and Warranties with Respect to the
Receivables. The Transferor has made the representations and warranties set forth in Section 3.01 of the Depositor Sale Agreement, and has consented to the assignment by the Depositor to the Issuer of the Depositor’s rights with
respect thereto. Pursuant to Section 2.01, the Depositor has transferred to the Issuer all of the Depositor’s right, title and interest in, to and under the Depositor Sale Agreement, which shall be understood to include the
representations and warranties of the Transferor therein, upon which the Issuer relies in accepting the Receivables, together with all rights of the Depositor with respect to any breach thereof, including the right to require the Transferor to
purchase Receivables in accordance with the Depositor Sale Agreement. 
  
 The Depositor makes the following representations and warranties as to the Receivables on which the Issuer is deemed to have relied in acquiring the Receivables. Such representations and warranties speak as of the execution and delivery of
this Agreement and as of the Closing Date, but shall survive the transfer and assignment of the Receivables to the Issuer and the Grant thereof to the Indenture Trustee pursuant to the Indenture. 
  
 (a) Title. No Receivable has been sold, transferred, assigned or
pledged by the Depositor to any Person other than the Issuer. Immediately prior to the transfer and assignment by the Depositor to the Issuer, the Depositor had good and marketable title to each Receivable, free and clear of all Liens and,
immediately upon the transfer thereof, the Issuer shall have good and marketable title to each Receivable, free and clear of all Liens; and such transfer has been perfected under the UCC. 
  

					
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 (b) All Filings Made. All filings (including UCC filings) necessary in any jurisdiction to give
(i) the Issuer a first perfected ownership interest in the Receivables and (ii) the Indenture Trustee a first perfected security interest in the Receivables have been made. 
  
 (c) Other Perfection Matters. The perfection, representations, warranties and covenants on Schedule I shall be
deemed part of this Agreement for all purposes. 
  
 Upon discovery
by the Depositor, the Servicer, the Owner Trustee or the Indenture Trustee of a breach of any of the representations and warranties of the Depositor set forth in this Section or of the Transferor set forth in Section 3.01 of the Depositor
Sale Agreement, in each case which materially and adversely affects the value of the Receivables or the interest therein of the Issuer or the Indenture Trustee (or which materially and adversely affects the interest of the Issuer or the Indenture
Trustee in the related Receivable in the case of a representation and warranty relating to a particular Receivable), the Person discovering such breach shall give prompt written notice to the other parties hereto. On the last day of the Collection
Period following the Collection Period during which the Depositor discovers or receives notice of any such breach of any such representation or warranty, if such breach shall not have been cured in all material respects by such last day, then the
Depositor shall purchase (and, if applicable, the Depositor shall enforce the obligation of Transferor, under the Depositor Sale Agreement, to purchase) such Receivable from the Issuer as of such last day at a price equal to the Purchase Amount of
such Receivable, which price the Depositor shall remit in the manner specified in Section 5.05; provided that this Section is subject to the longer time period for a breach of Section 3.01(xvii) of the Depositor Sale Agreement
as set forth therein; provided, further, however, that the obligation of the Depositor to purchase any Receivable that arises as a result of a breach of the representations and warranties of the Transferor under the Depositor
Sale Agreement, as the case may be, is subject to the payment of the Purchase Amount by the Transferor in accordance with the Depositor Sale Agreement. Subject to the indemnification provisions contained in Section 6.04, the sole remedy of
the Issuer, the Owner Trustee, the Indenture Trustee, the Residual Interestholder and the Noteholders with respect to a breach of representations and warranties of the Depositor set forth in this Section shall be to require the Depositor to purchase
the affected Receivables pursuant to this Section, subject to the conditions contained herein; provided that this Section shall not limit the right of the Issuer, the Servicer, the Owner Trustee or the Indenture Trustee to enforce (or to
cause the Depositor to enforce) the obligation of the Transferor to purchase Receivables pursuant to the Depositor Sale Agreement, as described above. 
  
 SECTION 3.02 Custody of Receivable Files. To assure uniform quality in servicing the Receivables and to reduce administrative costs, the Issuer
hereby revocably appoints the Servicer, and the Servicer hereby accepts such appointment, to act for the benefit of the Issuer and the Indenture Trustee as custodian of the following documents or instruments which are hereby or shall hereby be
constructively delivered to the Indenture Trustee, as pledgee of the Issuer, as of the Closing Date with respect to each Receivable: 
  
 (a) the fully executed original Receivable; 
  
 (b) a fully executed assignment of the Receivable in blank or from the related Dealer to E*Trade Consumer Finance or the applicable Affiliated Originator
(and then assigned to 

  

					
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E*Trade Consumer Finance), as the case may be, if such Receivable was acquired by E*Trade Consumer Finance or the Affiliated Originator (and then assigned to
E*Trade Consumer Finance), as the case may be, from a Dealer; and a fully executed further assignment thereof in blank or from E*Trade Consumer Finance to the Transferor. 
  
 (c) a signed representation letter or agreement from the Obligor named in the Receivable pursuant to which the Obligor has
agreed to obtain physical damage insurance for the Financed Asset, or copies thereof; 
  
 (d) the Title Document, or Lien Certificate (which may be held separately from the Receivable) or a copy of the application therefor, except with respect to Financed Boats that are Federally Documented Boats, or a
certification from the Servicer that it has received confirmation from an authorized official of the appropriate governmental office of the existence of the first lien of E*Trade Consumer Finance or the Affiliated Originator, as applicable, with
respect to the related Financed Asset; and 
  
 (e) a credit
application signed by the Obligor, or a copy thereof. 
  
 Within
120 days after the Closing Date, the Servicer, as custodian, shall ascertain whether all of the Receivable Files are in its possession, and shall deliver to the Indenture Trustee a certification (“Final Certification”) substantially
in the form attached as Exhibit C hereto. During the term of this Agreement, in the event the Servicer, as custodian, discovers any defect with respect to the Receivable File, the Servicer, as custodian, shall give written specification of
such defect to the Indenture Trustee. 
  
 SECTION 3.03 Duties
of Servicer as Custodian. 
  
 (a) Safekeeping. As the
custodian appointed pursuant to Section 3.02, the Servicer shall hold the Receivable Files for the benefit of the Issuer and the Indenture Trustee and maintain such accurate and complete accounts, records and computer systems pertaining to
each Receivable File as shall enable the Issuer to comply with this Agreement. In performing its duties as custodian the Servicer shall act with reasonable care, using that degree of skill and attention that the Servicer exercises with respect to
the receivable files relating to all comparable recreational vehicle or boat receivables that the Servicer services for itself or others. The Servicer shall conduct, or cause to be conducted, periodic audits of the Receivable Files held by it under
this Agreement and of the related accounts, records and computer systems, in such a manner as shall enable the Issuer or the Indenture Trustee to verify the accuracy of the Servicer’s record keeping. The Servicer shall promptly report to the
Issuer and the Indenture Trustee any failure on its part to hold the Receivable Files and maintain its accounts, records and computer systems as herein provided and shall promptly take appropriate action to remedy any such failure. 
  
 (b) Maintenance of and Access to Records. The Servicer shall maintain
each Receivable File at its office specified in Schedule B or at such other office as shall be specified to the Issuer and the Indenture Trustee by written notice not later than 90 days after any change in location. At the time of any such
change of location, the Servicer will deliver to the Indenture Trustee an Opinion of Counsel opining that the Indenture Trustee’s security interest in the 

  

					
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Receivables remains perfected and of first priority. The Servicer shall make available to the Issuer and the Indenture Trustee or their respective duly
authorized representatives, attorneys or auditors a list of locations of the Receivable Files, and access to such Receivable Files and the related accounts, records and computer systems maintained by the Servicer at such times during normal business
hours as the Issuer or the Indenture Trustee shall instruct which, in the case of any successor Servicer, do not unreasonably interfere with such successor Servicer’s normal operations or customer or employee relations. Access to Receivable
Files by Noteholders, Note Owners and the Residual Interestholder is addressed in Section 4.12. Nothing in this Section shall affect the obligation of the Servicer to observe any applicable law prohibiting disclosure of information regarding
the Obligors and the failure of the Servicer to provide access to information as a result of such obligation shall not constitute a breach of this Section. 
  
 (c) Release of Documents. Upon written instruction from the Indenture Trustee, the Servicer shall release any Receivable File to the Indenture
Trustee, the Indenture Trustee’s agent or the Indenture Trustee’s designee, as the case may be, at such place or places as the Indenture Trustee may designate, as soon as practicable following the Servicer’s receipt of such written
instruction. 
  
 SECTION 3.04 Instructions; Authority To
Act. The Servicer shall be deemed to have received proper instructions with respect to the Receivable Files upon its receipt of written instructions signed by a Trust Officer of the Indenture Trustee. 
  
 SECTION 3.05 Custodian’s Indemnification. The Servicer as
custodian shall indemnify the Trust, the Owner Trustee and the Indenture Trustee and each of their respective officers, directors, employees and agents for any and all liabilities, obligations, losses, compensatory damages, payments, costs or
expenses of any kind whatsoever that may be imposed on, incurred by or asserted against the Trust, the Owner Trustee or the Indenture Trustee or any of their respective officers, directors, employees and agents as the result of Servicer’s as
custodian negligence or willful misconduct in any way relating to the maintenance and custody of the Receivable Files by the Servicer as custodian thereof; provided, however, that the Servicer shall not be liable to the Owner Trustee
for any portion of any such amount resulting from the willful misfeasance, bad faith or negligence of the Owner Trustee and the Servicer shall not be liable to the Indenture Trustee for any portion of any such amount resulting from the willful
misfeasance, bad faith or negligence of the Indenture Trustee. 
  
 SECTION 3.06 Effective Period and Termination. The Servicer’s appointment as custodian shall become effective as of the Cut-Off Date and shall continue in full force and effect until terminated pursuant to this Section. If
E*Trade Consumer Finance shall resign as Servicer in accordance with Article VII or if all of the rights and obligations of any Servicer shall have been terminated pursuant to Section 8.01, the appointment of such Servicer as custodian
shall be terminated by the Indenture Trustee acting at the written direction of the Holders of Notes evidencing not less than a majority of the Note Balance of the Notes of the Controlling Class (or, if all the Notes have been paid in full, by the
Owner Trustee or by the Residual Interestholder, in the same manner as the Indenture Trustee or such Holders of Notes may terminate the rights and obligations of the Servicer under Section 8.01). The Indenture Trustee or, with the consent of
the Indenture Trustee, the Owner Trustee may terminate the Servicer’s appointment as custodian, with cause, at any time upon written notification to the Servicer and, without cause, upon 30 

  

					
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days’ prior written notification to the Servicer. As soon as practicable after any termination of such appointment, the Servicer shall deliver the
Receivable Files to the Indenture Trustee or the Indenture Trustee’s agent at such place or places as the Indenture Trustee may reasonably designate. 
  
 ARTICLE IV 
  
 Administration and Servicing of Receivables 
  
 SECTION 4.01 Duties of Servicer. Subject to Section 4.02, the Servicer, for the benefit of the Issuer (to the extent provided herein), shall
manage, service, administer and make collections on the Receivables (other than Purchased Receivables) with reasonable care, using that degree of skill and attention that the Servicer exercises with respect to all comparable recreational vehicle or
boat receivables, as applicable, that it services for itself or others. The Servicer’s duties shall include collection and posting of all payments, responding to inquiries of Obligors on such Receivables, investigating delinquencies, sending
payment coupons to Obligors, reporting tax information to Obligors, accounting for collections, furnishing monthly and annual statements to the Owner Trustee and the Indenture Trustee with respect to distributions and making Advances. 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 Issuer, the Owner Trustee, the Indenture Trustee, the Noteholders, the Residual Interestholder 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 Financed Assets securing such Receivables. If the Servicer shall commence a legal proceeding to enforce a Receivable, the Issuer (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 grounds 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 Owner Trustee, the Indenture Trustee, the Residual Interestholder 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. 
  
 SECTION 4.02 Collection and Application of Receivable Payments. The Servicer shall make reasonable efforts to collect all payments called for under
the terms and provisions of the Receivables as and when the same shall become due and shall follow such collection procedures as it follows with respect to all comparable new or used recreational vehicle or boat receivables, as applicable, that it
services for itself or others. Subject to the foregoing, the Servicer may, in its discretion, arrange with Obligor on a Receivable to extend or modify the related payment schedule, but no such agreement shall, for the purposes of this Agreement,
modify the original due dates (except that E*Trade Consumer Finance as Servicer may, for administrative purposes, modify the due date of a Receivable to a different date in the same month, which date shall be reflected in its servicing records) or
the amounts of the originally scheduled payments on 

  

					
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Receivables; provided, however, that if the Servicer extends the date for final payment by the Obligor of any Receivable beyond the Payment
Date immediately following the latest scheduled maturity date of the Receivables held by the Issuer, it shall promptly purchase the Receivable from the Issuer in accordance with the terms of Section 4.07. The Servicer may in its discretion
waive any late payment charge or any other fees that may be collected in the ordinary course of servicing a Receivable. The Servicer shall not agree to any alteration of the interest rate or the originally scheduled payments on any Receivable. The
Servicer shall apply payments by or on behalf of Obligors in accordance with Section 5.03. 
  
 SECTION 4.03 Realization upon Receivables. On behalf of the Issuer, the Servicer shall use its best efforts, consistent with its customary
servicing procedures, to repossess or otherwise convert the ownership of the Financed Assets securing any Receivable as to which the Servicer shall have determined eventual payment in full is unlikely. The Servicer shall follow such customary and
usual practices and procedures as it shall deem necessary or advisable in its servicing of the Receivables, which may include reasonable efforts to realize upon any recourse to Dealers and selling the Financed Asset at public or private sale. The
Servicer is not required hereunder to pursue Obligors for deficiency balances or judgments. The Servicer shall be entitled to reimbursement out of recoveries on an aggregate basis on such Defaulted Receivable for its reasonable, out-of-pocket costs
and expenses incurred in realizing upon any Financed Asset securing any Receivable that becomes a Defaulted Receivable or in attempting to repossess any Financed Asset and in prosecuting legal action against any Obligor in respect of any Receivable.
The foregoing shall be subject to the provision that, in any case in which the Financed Asset shall have suffered damage, (i) the Servicer shall not expend funds in connection with the repair or the repossession of such Financed Asset unless it
shall determine in its discretion that such repair and/or repossession shall increase the Liquidation Proceeds by an amount greater than the amount of its expenses in connection with such repair and/or repossession, and (ii) the Servicer may,
subject to Section 4.01, allow Obligors to use the proceeds of the applicable Insurance Policy to repair or replace such Financed Asset rather than to prepay the related Receivable. 
  
 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 Financed Asset as of the execution of the Receivable. 
  
 SECTION 4.05 Maintenance of Security Interests in Financed Assets. The
Servicer shall (and with respect to any successor Servicer, at the Issuer’s expense subject to the priority of payments for such amounts in Section 8.02 of the Indenture), in accordance with its customary servicing procedures, take such
steps as are necessary to maintain perfection of the security interest created by each Receivable in the related Financed Asset. The Servicer is hereby authorized to take such steps as are necessary to re-perfect such security interest on behalf of
the Issuer and the Indenture Trustee in the event of the relocation of a Financed Asset or for any other reason. 
  
 With respect to each Federally Documented Boat, the Servicer shall either (i) cause an Assignment of Preferred Mortgage (with a completed Schedule
1) to the extent necessary to evidence the assignment of the security interest in such Federally Documented Boat to the Boat Mortgage Trustee, or (ii) cause Preferred Mortgages in such Federally Documented Boat in favor 

  

					
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of the Boat Mortgage Trustee, as applicable, to be duly filed with the Coast Guard no later than 90 days after the Closing Date. 
  
 SECTION 4.06 Covenants of Servicer. The Servicer shall not release the
Financed Asset securing any Receivable from the security interest granted by such Receivable in whole or in part (except in the event of payment in full by the Obligor thereunder or repossession, or except as ordered by a court of competent
jurisdiction), nor shall the Servicer impair the rights of the Issuer, the Indenture Trustee, the Residual Interestholder or the Noteholders in such Receivable, nor shall the Servicer increase the number of scheduled payments due under a Receivable.

  
 SECTION 4.07 Purchase of Receivables upon Breach. The
Servicer or the Owner Trustee shall inform the other party and the Indenture Trustee and the Depositor promptly, in writing, upon the discovery of any breach of the Servicer’s obligations under Section 4.02, 4.05 or 4.06.
Unless the breach shall have been cured by the last day of the second Collection Period following such discovery (or, at the Servicer’s election, the last day of the first following Collection Period), the Servicer shall purchase from the Trust
any Receivable materially and adversely affected by such breach as of such last day; provided, that, with respect to any Federally Documented Boat for which either (i) an Assignment of Preferred Mortgage to the extent necessary to evidence
the assignment of the security interest in such Federally Documented Boat to the Boat Mortgage Trustee or (ii) a Preferred Mortgage in such Federally Documented Boat in favor of the Boat Mortgage Trustee, as applicable, has not been filed with the
Coast Guard as contemplated by Section 4.05, the Servicer shall, on the first Business Day following the 90th day after the Closing Date, purchase the related Receivable from the Trust, with the Purchase Amount thereof to be calculated as of
the last day of the related Collection Period. If the Servicer takes any action during any Collection Period pursuant to Section 4.02 that impairs the rights of the Issuer, the Indenture Trustee, the Noteholders or the Residual Interestholder
in any Receivable or as otherwise provided in Section 4.02, the Servicer shall purchase such Receivable from the Trust as of the close of business on the last day of such Collection Period. 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 5.05. Subject to Section 7.02, the sole remedy of the Issuer, the Owner Trustee, the
Indenture Trustee, the Noteholders or the Residual Interestholder 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 and the Indenture 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 Servicer shall notify each of the Rating
Agencies upon filing the Assignments Preferred Mortgages, if any, with the Coast Guard. 
  
 SECTION 4.08 Servicing Fee. The “Servicing Fee” for each payment date shall, unless a successor Servicer is appointed pursuant to Section 8.02, equal the product of (a) one-twelfth (or,
in the case of the first Payment Date, a portion equal to the number of days from the Cut-Off Date to the last day of the first Collection Period over 360), (b) the Servicing Fee Rate and (c) the Pool Balance as of the first day of the
related Collection Period (or in the case of the first Payment Date, the Cut-Off Date). The Servicer shall also be entitled to retain any late fees, prepayment charges and other administrative fees or similar charges provided for under the
Receivables or allowed by applicable law, in each case to the extent not prohibited by applicable 

  

					
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law, collected (from whatever source) on the Receivables. If a successor Servicer is appointed pursuant to Section 8.02, which may be the Back-Up
Servicer, the Servicing Fee will equal the amount calculated above with respect to the initial Servicer (plus, in the case of the Back-Up Servicer, any additional fees and expenses set forth in the Back-Up Servicer Agreement). 
  
 SECTION 4.09 Servicer’s Certificate. At least three (3) Business
Days prior to each Determination Date the Servicer shall provide to the Indenture Trustee the Servicer’s Certificate. Not later than 11:00 A.M. (New York City time) on at least (2) two Business Days prior to Determination Date, the Servicer
shall deliver to the Owner Trustee, each Paying Agent and the Depositor, with a copy to the Rating Agencies, a Servicer’s Certificate containing all information necessary to make the distributions to be made on the related Payment Date pursuant
to Sections 5.05 and 5.06 for the related Collection Period. Receivables to be purchased by the Servicer, the Depositor, E*Trade Consumer Finance or the Transferor shall be identified by the Servicer by account number with respect to
such Receivable (as specified in the Schedule of Receivables). 
  
 SECTION 4.10 Annual Statement as to Compliance; Notice of Default. 
  
 (a) The Servicer shall deliver to the Owner Trustee and the Indenture Trustee, on or before April 15 of each year beginning in 2005, an Officer’s Certificate, dated as of December 31 of the preceding year,
stating that (i) a review of the activities of the Servicer during the preceding 12 month period (or such shorter period as shall have elapsed since the Closing Date or if a successor Servicer, since assumption) and of its performance under this
Agreement has been made under the supervision of the officers of the Servicer signing such Officer’s Certificate and (ii) the Servicer has fulfilled all its obligations under this Agreement throughout such year (or such shorter period as shall
have elapsed since the Closing Date) or, if there has been a default in the fulfillment of any such obligation, specifying each such default and the nature and status thereof. The Indenture Trustee shall send a copy of such certificate and the
report referred to in Section 4.11 to the Rating Agencies. A copy of such certificate and the report referred to in Section 4.11 may be obtained by any Noteholder, Note Owner or the Residual Interestholder by a request in writing to
the Owner Trustee addressed to the Corporate Trust Office. Upon written request of the Owner Trustee, the Indenture Trustee shall promptly furnish the Owner Trustee a list of Noteholders as of the date specified by the Owner Trustee. 
  
 (b) 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 (5) Business Days thereafter, written notice in an Officer’s Certificate of any event which is or which with the giving of notice or
lapse of time, or both, would become, a Servicer Default under Section 8.01(a), (b) or (d). 
  
 SECTION 4.11 Annual Independent Certified Public Accountants’ Report. The Servicer shall cause a firm of nationally recognized
“independent certified public accountants” (within the meaning of the Code of Professional Ethics of the American Institute of Certified Public Accountants), which may also render other services to the Servicer, the Depositor or their
Affiliates, to deliver to the Owner Trustee and the Indenture Trustee on or before April 15 of each year beginning in 2005, a report addressed to the Board of Directors of the Servicer, to the effect that (a) such firm has examined the annual
Officer’s Certificate delivered by the Servicer pursuant to Section 4.10, (b) such examination (i) was made in accordance with attestation 

  

					
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standards established by the American Institute of Certified Public Accountants and accordingly included examining, in a test basis, evidence about the
Servicer’s compliance with those requirements and performing such other procedures as such accountants considered necessary in the circumstances, and (ii) included tests relating to retail installment loans or installment sales contracts
secured by recreational vehicles or boats serviced for others in compliance with the minimum servicing standards identified in the Mortgage Bankers Association of America’s Uniform Single Attestation Program for Mortgage Bankers (the
“Program”), to the extent such standards are applicable to the servicing obligations set forth in this Agreement, (c) management of the Servicer has asserted to such firm that the Servicer has complied with the minimum servicing
standards identified in the Program to the extent that such standards are applicable to the servicing obligations set forth in this Agreement, and (d) except as described in such report, the Servicer’s annual statement of compliance for such
year delivered pursuant to Section 4.10 is fairly stated in all material respects. 
  
 SECTION 4.12 Access to Certain Documentation and Information Regarding Receivables. The Servicer shall provide to the Noteholders, Note Owners, and the Residual Interestholder access to the Receivable Files in
such cases where the Noteholders, Note Owners, or the Residual Interestholder, as applicable, shall be required by applicable statutes or regulations to review such documentation. Access shall be afforded without charge, but only upon reasonable
request and during the normal business hours at the offices of the Servicer. Nothing in this Section shall affect the obligation of the Servicer to observe any applicable law prohibiting disclosure of information regarding the Obligors and the
failure of the Servicer to provide access to information as a result of such obligation shall not constitute a breach of this Section. 
  
 The Servicer shall provide to the Noteholders, Note Owners, and the Residual Interestholder and any supervisory agents or examiners which may relate to
the Noteholders, Note Owners, or the Residual Interestholder, including the Office of Thrift Supervision, the Office of the Comptroller of the Currency or the FDIC and other similar entities, access to any documentation regarding the Receivables
which may be required by any applicable regulations. Such access shall be afforded without charge, upon reasonable request, during normal business hours and at the offices of the Servicer which, in the case of any successor Servicer, do not
unreasonably interfere with such successor Servicer’s normal operations or customer or employee relations, all in accordance with federal government, the FDIC, the Office of Thrift Supervision, the Office of the Comptroller of the Currency or
any other similar regulations. 
  
 SECTION 4.13 Servicer
Expenses. The initial Servicer shall be required to pay all expenses incurred by it in connection with its activities hereunder, including fees and disbursements of the Back-Up Servicer, any other subservicer appointed pursuant to Section
4.14, independent accountants, taxes imposed on the Servicer and expenses incurred by the Servicer in connection with distributions and reports to Noteholders. 
  
 SECTION 4.14 Appointment of Subservicer. The Servicer may at any time, and from time to time, appoint one or more
subservicers to perform all or any portion of its obligations as Servicer hereunder pursuant to subservicing agreements including but not limited to its obligations as custodian as set forth in Article III. On and after the Cut-Off Date, the
Back-Up Servicer will act as a subservicer with respect to the receipt and standard surface review of 

  

					
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loan-level data relating to the Receivables, including the loan balance and payment information in each statement described in Section 5.08, as
further described, and pursuant to, the Back-Up Servicer Agreement. Prior to the appointment of any subservicer other than the Transferor or the Back-Up Servicer, the Servicer shall cause the Rating Agency Condition to have been satisfied in
connection therewith. Notwithstanding the appointment of any subservicer (including but not limited to the Transferor or the Back-Up Servicer), the Servicer shall remain obligated and be liable to the Issuer, the Owner Trustee, the Indenture
Trustee, the Noteholders and the Residual Interestholder for the servicing, administering and custodianship of the Receivables in accordance with the provisions hereof without diminution of such obligation and liability by virtue of the appointment
of such subservicer and to the same extent and under the same terms and conditions as if the Servicer alone were directly servicing and administering and acting as custodian of the Receivables. The fees and expenses of the subservicer shall be as
agreed between the Servicer and its subservicer from time to time, and none of the Issuer, the Owner Trustee, the Indenture Trustee, the Noteholders or the Residual Interestholder shall have any responsibility therefor. 
  
 SECTION 4.15 Fidelity Bond; Errors and Omissions Insurance. The
Servicer shall maintain, at its own expense, a blanket fidelity bond and an errors and omissions insurance policy, with broad coverage with responsible companies on all officers, employees or other persons acting in any capacity with regard to the
Receivables to handle funds, money, documents and papers relating to the Receivables. Any such fidelity bond and errors and omissions insurance shall protect and insure the Servicer against losses, including forgery, theft, embezzlement, fraud,
errors and omissions and negligent acts of such persons. Such fidelity bond shall also protect and insure the Servicer against losses in connection with any failure to maintain insurance policies required pursuant to this Agreement and the release
or satisfaction of a Receivable without having obtained payment in full of the indebtedness secured thereby. No provision of this Section 4.15 requiring such fidelity bond and errors and omissions insurance shall diminish or relieve the
Servicer from its duties and obligations as set forth in this Agreement. The coverage under any such bond and insurance policy shall be in such amounts as are customary for the business of servicing recreational vehicle receivables. 
  
 SECTION 4.16 1934 Act Filings. The Issuer hereby authorizes the
initial Servicer and the Depositor, or either of them, to prepare, sign, certify and file any and all reports, statements and information respecting the Issuer and/or the Notes required to be filed pursuant to the Securities and exchange Act of
1934, as amended, and the rules thereunder. 
  
 ARTICLE V

  
 Trust Accounts; Collections; Advances; Distributions;
Statements to Noteholders 
  
 SECTION 5.01 Establishment of
Trust Accounts. 
  
 (a)(i) The Indenture
Trustee, for the benefit of the Noteholders and the Residual Interestholder, shall establish and maintain in the name of the Indenture Trustee an Eligible Deposit Account (the “Collection Account”), bearing a designation clearly
indicating that the funds deposited therein are held for the benefit of the Noteholders and Residual Interestholder. 
  

					
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 (ii) The Indenture Trustee, for the benefit of the Noteholders, shall establish and
maintain in the name of the Indenture Trustee an Eligible Deposit Account (the “Note Distribution Account”), bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Noteholders.

  
 (iii) The Indenture Trustee, for the benefit
of the Noteholders, shall establish and maintain in the name of the Indenture Trustee a subaccount to the Note Distribution Account (the “Principal Distribution Account”), bearing a designation clearly indicating that the funds
deposited therein are held for the benefit of the Noteholders. 
  
 (iv) The Indenture Trustee, for the benefit of the Noteholders and the Servicer, shall establish and maintain in the name of the Indenture Trustee an Eligible Deposit Account (the “Reserve Account”),
bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Noteholders and the Servicer. 
  
 (b) Subject to Section 8.03 of the Indenture, funds on deposit in the Collection Account and the Reserve Account (the Collection Account and the
Reserve Account being referred to collectively, with the Note Distribution Account (and the Principal Distribution Account, a sub-account thereof), as the “Trust Accounts”) shall be invested by the Indenture Trustee in Eligible
Investments selected in writing by the Servicer, in each case pursuant to a direction of the Servicer. It is understood and agreed that the Indenture Trustee shall not be liable for any loss arising from an investment in Eligible Investments made in
accordance with this Section 5.01(b) except to the extent that the Indenture Trustee is the obligor of such Eligible Investments, unless such loss is occasioned by a reduction in the market price of such investment and not by default of the
Indenture Trustee in its capacity as obligor. All such Eligible Investments shall be held by the Indenture Trustee for the benefit of the Noteholders and the Residual Interestholder (or for such of such holders for whose benefit the applicable
account is maintained). All Investment Earnings with respect to amounts on deposit in a Trust Account shall be added to the balance of funds on deposit in such Trust Account, subject to application of funds on deposit in such Trust Account pursuant
to the applicable Basic Document. Other than as permitted by the Rating Agencies, funds on deposit in the Collection Account and the Reserve Account shall be invested in Eligible Investments that shall mature (i) not later than the Business Day
immediately preceding the next Payment Date or (ii) on such next Payment Date if either (A) such investment is held in the trust department of the institution with which each of the Collection Account and the Reserve Account is then maintained and
is invested in a time deposit of such institution that is rated at least A-1+ by Standard & Poor’s and Prime-1 by Moody’s or (B) E*Trade Consumer Finance (so long as the short-term unsecured debt obligations of E*Trade Consumer Finance
are either (I) rated at least A-1+ by Standard & Poor’s and Prime-1 by Moody’s on the date such investment is made or (II) guaranteed by an entity whose short-term unsecured debt obligations are rated at least A-1+ by Standard &
Poor’s and Prime-1 by Moody’s on the date such investment is made) has agreed to advance funds on such Payment Date to the Principal Distribution Account in the amount payable on such investment on such Payment Date pending receipt thereof
to the extent necessary to make distributions on such Payment Date. The guarantee referred to in clause (B) of the preceding sentence shall be subject to the Rating Agency Condition. For the purpose of the foregoing, unless E*Trade Consumer
Finance affirmatively agrees in writing with the Indenture Trustee to make such advance with respect to such investment prior to the time an investment is made, it shall not be deemed to have 

  

					
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agreed to make such advance. Funds deposited in a Trust Account on a day which immediately precedes a Payment Date upon the maturity of any Eligible
Investments are not required to be invested overnight. Funds on deposit in the Principal Distribution Account or Note Distribution Account shall not be invested. 
  
 (c)(i) The Indenture Trustee shall possess all right, title and interest in all funds on deposit from time to time in the
Trust Accounts and in all proceeds thereof (including all income thereon) and all such funds, investments, proceeds and income shall be part of the Trust Estate. The Trust Accounts shall be under the sole dominion and control of the Indenture
Trustee for the benefit of the Noteholders and the Residual Interestholder (or for such of such holders for whose benefit the applicable account is maintained). If, at any time, any of the Trust Accounts ceases to be an Eligible Deposit Account, the
Indenture Trustee (or the Servicer on its behalf) shall within ten (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 Deposit Account
and shall transfer any cash and/or any investments to such new Trust Account. 
  
 (ii) With respect to the Trust Account Property, the Indenture Trustee agrees, by its acceptance hereof, that: 
  
 (A) any Trust Account Property that is held in deposit accounts shall be held solely in the Eligible Deposit Accounts, subject to the last
sentence of Section 5.01(c)(i); and each such Eligible Deposit Account shall be subject to the exclusive custody and control of the Indenture Trustee, and the Indenture Trustee shall have sole signature authority with respect thereto;

  
 (B) any Trust Account Property that
constitutes a Certificated Item (other than a Clearing Corporation Item, Euroclear Item or Clearstream Item) or Instrument shall be registered in the name of the Indenture Trustee or endorsed to the Indenture Trustee or in blank by an authorized
person, with signature guaranteed, and the Indenture Trustee shall maintain continuous possession of such Certificated Item or Instrument on behalf of the Trust in the State of New York; 
  
 (C) any Trust Account Property that constitutes an Uncertificated Item (except those Uncertificated Items
consisting of Clearing Corporation Items) shall be continuously registered on the books of the issuer thereof to the Indenture Trustee; 
  
 (D) in the case of any Trust Account Property that constitutes a Clearing Corporation Item, the Indenture Trustee shall cause (i) the
relevant Clearing Corporation to make appropriate entries on its books increasing the appropriate securities account of the Indenture Trustee at such Clearing Corporation by the amount of such Clearing Corporation Item, and (ii) such Clearing
Corporation Item to be (I) continuously registered to the Clearing Corporation or its custodian or the nominee of either subject to the exclusive control of such Clearing Corporation (in the case of a Clearing Corporation Item that is an
Uncertificated Item) or continuously maintained in the State of New 

  

					
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York in the possession of such Clearing Corporation or its custodian or the nominee of either subject to the exclusive control of such Clearing Corporation
(in the case of a Clearing Corporation Item that is a Certificated Item), and (II) continuously identified on the books and records of such Clearing Corporation for the sole and exclusive account of the Indenture Trustee; 
  
 (E) in the case of any Trust Account Property that
constitutes a Euroclear Item, the Indenture Trustee shall cause (i) Euroclear to make appropriate entries on its books increasing the appropriate securities account of the Indenture Trustee’s client securities account at Euroclear and to send
confirmation to the Indenture Trustee that Euroclear is holding such Euroclear Item for the account of the Indenture Trustee, and (ii) such Euroclear Item to be (I) continuously registered to Euroclear, and (II) continuously identified on the books
and records of Euroclear for the sole and exclusive account of the Indenture Trustee; 
  
 (F) in the case of any Trust Account Property that constitutes a Clearstream Item, the Indenture Trustee shall cause (i) Clearstream to
make appropriate entries on its books transferring each such Clearstream Item to the Indenture Trustee’s client securities account at Clearstream and to send confirmation to the Indenture Trustee that Clearstream is holding such Clearstream
Item for the account of the Indenture Trustee, and (ii) such Clearstream Item to be (I) continuously registered to Clearstream, and (II) continuously identified on the books and records of Clearstream for the sole and exclusive account of the
Indenture Trustee; 
  
 (G) in the case of any
Trust Account Property that constitutes a Government Item, the Indenture Trustee shall cause (i) the transfer of such Government Item to one or more book-entry accounts for the Indenture Trustee at the Federal Reserve Bank of New York, and (ii) such
Government Item to be continuously identified in one or more book-entry accounts for the Indenture Trustee at the Federal Reserve Bank of New York; and 
  
 (H) without limiting the foregoing, the Servicer shall instruct the Indenture Trustee to take such different or additional action as may
be, based on an Opinion of Counsel of the Servicer, reasonably appropriate in order to maintain the perfection and priority of the security interest of the Indenture Trustee in the Trust Account Property under applicable law, including Articles 8
and 9 of the UCC and regulations of the U.S. Department of the Treasury governing transfers of interests in Government Items, and the Indenture Trustee shall cooperate with the Servicer in connection therewith. 
  
 (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 make withdrawals and payments from the Trust Accounts (other than the Principal Distribution Account) 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. 
  

					
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 All references in this Section 5.01 (or in terms defined in Appendix A and used without
definition in this Section 5.01) to the UCC shall be to the UCC as in effect in the State of New York, as amended from time to time. 
  
 SECTION 5.02 Collections. (a) The Servicer shall remit within two (2) Business Days of receipt thereof in cash to the Collection Account all
payments by or on behalf of the Obligors with respect to the Receivables (other than Purchased Receivables) and all Liquidation Proceeds, both as collected during each Collection Period. For purposes of this Article V the phrase
“payments by or on behalf of Obligors” shall mean payments made with respect to the Receivables or the Financed Assets by Persons other than the Servicer, E*Trade Consumer Finance, the Transferor or the Depositor. 
  
 (b) Notwithstanding anything in this Agreement to the contrary, if (i)
E*Trade Consumer Finance is the Servicer, (ii) no Servicer Default has occurred and is continuing and (iii) (A) the Servicer’s short-term unsecured debt rating is at least “A-1” by Standard & Poor’s and “Prime-1” by
Moody’s, or (B) E*Trade Consumer Finance otherwise obtains the Rating Agency confirmations described below, then (subject to any limitations in such confirmations described below), the Servicer need not make the daily deposits of payments and
Liquidation Proceeds into the Collection Account as provided in Section 5.02(a), but may make a single deposit into the Collection Account in same-day funds not later than 2:00 p.m. (New York City time) on each Determination Date in a net
amount equal to the amount which would have been on deposit with respect to the immediately preceding Collection Period in the Collection Account; provided, however, that prior to ceasing daily deposits as described in Section
5.02(a) the Servicer shall have delivered to the Indenture Trustee (i) only if E*Trade Consumer Finance is relying on clause (b)(iii)(B) above, written confirmation from each of the Rating Agencies that the failure by E*Trade Consumer
Finance to make daily deposits shall not result in a qualification, reduction or withdrawal of the rating of any Notes then Outstanding and (ii) a certificate of a vice president or other officer of the Servicer stating that all conditions described
in this paragraph to the cessation of the Servicer’s duty to make daily deposits have been satisfied. If (i) E*Trade Consumer Finance is no longer the Servicer, (ii) a Servicer Default has occurred and is continuing, (iii) the Servicer shall
cease to have the required short-term unsecured debt ratings described in the previous sentence, or (iv) any Rating Agency shall revoke its confirmation described in the previous sentence or E*Trade Consumer Finance shall fail to comply with any
limitations in any such confirmation, then (A) the Servicer shall comply with Section 5.02(a) until such time as the conditions described in the previous sentence have been satisfied and (B) E*Trade Consumer Finance promptly shall notify the
Indenture Trustee as to the failure of such conditions to be satisfied. 
  
 (c) If (i) the Servicer makes a deposit into the Collection Account in respect of a payment of a Receivable and such payment was received by the Servicer in the form of a check which is not honored for any reason or (ii) the Servicer makes
a mistake with respect to the amount of any payment and deposits an amount that is less than or more than the actual amount of such payment, the Servicer shall appropriately adjust the amount subsequently deposited into the Collection Account to
reflect such dishonored check or mistake. Any Receivable in respect of which a dishonored check is received shall be deemed not to have been paid. 
  

					
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 (d) As an administrative convenience, unless the Servicer is required to remit payments daily pursuant to
Section 5.02(a) (taking into effect Section 5.02(b)), the Servicer may make the deposit of payments by or on behalf of Obligors, Advances and Purchase Amounts for or with respect to the related Collection Period out of distributions to
be made to the Servicer with respect to such Collection Period. However, the Servicer shall account to the Owner Trustee, the Indenture Trustee, the Noteholders and the Residual Interestholder as if all deposits, distributions and transfers were
made individually. 
  
 SECTION 5.03 Application of
Collections. All payments by or on behalf of Obligors for any Collection Period shall be applied by the Servicer as follows: (a) first, payments by or on behalf of the Obligors (other than with respect to Purchased Receivables) shall be
applied to reduce Outstanding Advances to the extent described in Section 5.04; and (b) second, any excess shall be applied to interest and principal on the Receivables in accordance with the Simple Interest Method; and (c)
third, any remaining amounts shall be applied to any late fees and other charges in accordance with the customary servicing procedures that the Servicer follows with respect to all comparable recreational vehicle and boat receivables, as
applicable, that it services for itself or others. 
  
 SECTION
5.04 Advances. 
  
 (a) Except as provided in clause
(b) below, as of the close of business on the last day of each Collection Period, the Servicer shall advance an amount equal to the amount of interest due on the Receivables at their respective APRs for such Collection Period (assuming the
Receivables pay on their respective due dates) minus the amount of interest actually received by the Servicer on the Receivables during such Collection Period (such amount, an “Advance”). Any Advance shall increase
Outstanding Advances. If such calculation (i.e., the subtraction of the amount of interest due on the Receivables at their respective APRs for the related Collection Period (assuming the Receivables pay on their respective due dates) from the amount
of interest actually received on the Receivables during the related Collection Period) results in a negative number, an amount equal to the absolute value of such negative number shall be paid to the Servicer (out of funds that otherwise would be
deposited in the Collection Account to the extent of Outstanding Advances) and the amount of Outstanding Advances shall be reduced by such amount, in each case in accordance with Section 5.03. In addition, in the event that a Receivable
becomes a Defaulted Receivable, Liquidation Proceeds with respect to such Receivable attributable to accrued and unpaid interest thereon (but not including interest for the then current Collection Period) shall be paid to (or retained by) the
Servicer (out of funds that otherwise would be deposited in the Collection Account) to reduce Outstanding Advances. 
  
 (b) Notwithstanding the foregoing, the Servicer shall not make any Advance: (i) unless, and to the extent, the Servicer, in its sole discretion, believes
that the Servicer shall be reimbursed for such Advance as contemplated by this Section; (ii) in respect of principal of the Receivables; or (iii) in respect of a Defaulted Receivable or a Purchased Receivable. 
  
 SECTION 5.05 Additional Deposits. The Servicer shall deposit in the
Collection Account on or before 2:00 p.m. (New York City time) on the Determination Date following each Collection Period the related Advance made, if any, pursuant to Section 5.04. The Servicer and the Depositor shall deposit or cause to be
deposited in the Collection Account the aggregate 

  

					
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Purchase Amount with respect to Purchased Receivables and the Servicer shall deposit therein all amounts to be paid under Section 9.01, in each case
on or prior to 2:00 p.m. (New York City time) on the Determination Date following the Collection Period as of which such purchase is made by the Servicer, E*Trade Consumer Finance, the Transferor or the Depositor, as the case may be. In addition,
any other deposits required to be made by the Depositor or the Servicer to the Collection Account and which are not otherwise provided for by Section 5.02 or by the other provisions of this Section 5.05 shall be made on or prior to
2:00 p.m. (New York City time) on the Determination Date following the related Collection Period. 
  
 SECTION 5.06 Distributions. No later than one (1) Business Day prior to each Payment Date, the Servicer will cause all Available Funds to be
deposited into the Collection Account. 
  
 On each Determination
Date, the Servicer will determine the amount in the Collection Account for distribution on the related Payment Date and will notify the Indenture Trustee in writing. Payments to Noteholders will be made on each Payment Date in accordance with that
determination, and in accordance with Section 8.02 of the Indenture. 
  
 SECTION 5.07 Reserve Account. 
  
 (a) On the Closing Date, the Depositor shall deposit (or cause to be deposited) in the Reserve Account cash in an amount equal to the Reserve Account Initial Deposit. 
  
 (b) Amounts on deposit in the Reserve Account shall be invested by the Indenture Trustee at the direction of the Servicer in
Eligible Investments, and investment earnings, net of losses and investment expenses, therefrom shall be deposited by the Indenture Trustee as part of the Available Funds into the Collection Account in accordance with Section 5.06.

  
 (c) If at the end of any Payment Date, the amount on deposit
in the Reserve Account is greater than or equal to the Note Balance of the Notes then Outstanding, amounts on deposit in the Reserve Account will be used to repay the Notes in full on that Payment Date. 
  
 SECTION 5.08 Statements to Noteholders. At least three (3) Business
Days prior to each Determination Date, the Servicer shall provide to the Indenture Trustee and the Owner Trustee (with a copy to each Paying Agent) information relating to the Receivables for the related Collection Period in order that the Indenture
Trustee based on the information in the Servicers Certificate may perform the requisite calculations and forward or make available on its website www.jpmorgan.com/sfr to each Noteholder of record as of the most recent Record Date a statement
substantially in the form of Exhibit A setting forth the information specified in such Exhibit and the following information as to the Notes to the extent applicable: 
  
 (i) the amount of distributions to be made on such Payment Date allocable to principal of each Class of
Notes; 
  
 (ii) the amount of such distributions
to be made on such Payment Date allocable to interest on or with respect to each Class of Notes; 
  

					
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 (iii) the Note Balance of each Class of Notes and the Note Pool Factor for each such
Class, after giving effect to payments allocated to principal reported under clause (i) above; 
  
 (iv) the amount of the Servicing Fee paid to the Servicer with respect to the related Collection Period or Collection Periods, as the case
may be; 
  
 (v) the balance of the Reserve
Account on such Payment Date after giving effect to deposits and withdrawals to be made on such Payment Date, if any; 
  
 (vi) the Pool Balance as of the close of business on the last day of the preceding Collection Period; 
  
 (vii) any shortfall in required payments on the Notes, if
any, in each case as applicable to each Class of Notes, and the change in such amounts from the preceding statement; and 
  
 (viii) the aggregate Purchase Amounts for Receivables that were repurchased in the related Collection Period, if any. 
  
 Each amount set forth on the Payment Date statement under
clauses (i), (ii) and (iv) above shall be expressed as a dollar amount per $1,000 of original principal balance of a Note. 
  
 ARTICLE VI 
  
 The Depositor 
  
 SECTION 6.01 Representations of Depositor. The Depositor makes the following representations on which the Issuer is deemed to have relied in acquiring the Receivables. The representations speak as of the
execution and delivery of this Agreement and as of the Closing Date, in the case of the Receivables, and shall survive the transfer of the Receivables to the Issuer and the Grant thereof 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 corporate 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 corporate 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 shall require such qualifications. 
  
 (c) Power and Authority. The Depositor has the corporate power and authority to execute and deliver this Agreement and to carry out its respective
terms; the Depositor has full power and authority to transfer and assign the property to be transferred and assigned to and 

  

					
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deposited with the Issuer, and the Depositor shall have duly authorized such transfer and assignment to the Issuer by all necessary corporate action; and the
execution, delivery and performance of this Agreement by the Depositor 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.

  
 (e) No Violation. The consummation of the transactions
contemplated by this Agreement by the Depositor and the fulfillment of the terms hereof by the Depositor do not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a
default under, the articles of incorporation or bylaws of the Depositor, or any indenture, agreement or other instrument to which the Depositor is a party or by which it is bound; or 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 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. To the Depositor’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 Depositor or its properties: (i) asserting the invalidity of this Agreement, the Indenture or any of the other
Basic Documents, the Notes or the Residual Interest, (ii) seeking to prevent the issuance of the Notes or the Residual Interest 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, any of the other Basic
Documents, the Notes or the Residual Interest or (iv) which might adversely affect the federal or state income tax attributes of the Notes or the Residual Interest. 
  
 (g) Location. The chief executive office of the Depositor is located at 3355 Michelson Drive, Suite 350, Irvine,
California 92612. The Depositor is solely incorporated in Nevada. 
  
 SECTION 6.02 Corporate Existence. During the term of this Agreement, the Depositor shall keep in full force and effect its existence, rights and franchises as a corporation under the laws of Nevada and shall 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 transactions contemplated hereby. In addition, all transactions and dealings between the Depositor and its Affiliates shall be conducted on an arm’s-length basis. 
  

					
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 SECTION 6.03 Liability of the Depositor. The Depositor shall be liable in accordance herewith only
to the extent of the obligations specifically undertaken by the Depositor under this Agreement. 
  
 SECTION 6.04 Indemnification. (b) The Depositor shall indemnify, defend and hold harmless the Issuer, the Owner Trustee, the Indenture Trustee and
any of the officers, directors, employees and agents of the Issuer, the Owner Trustee and the Indenture Trustee from and against any taxes that may at any time be asserted against any such Person with respect to the transactions contemplated herein
and in the other Basic Documents (except any income taxes arising out of fees paid to the Owner Trustee and the Indenture Trustee), including any sales, gross receipts, general corporation, tangible personal property, privilege or license taxes
(but, in the case of the Issuer, not including any taxes asserted with respect to, and as of the date of, the transfer of the Receivables to the Issuer or the issuance and original sale of the Notes and the Residual Interest, or asserted with
respect to ownership of the Receivables, or federal or other income taxes arising out of distributions on the Notes and the Residual Interest) and costs and expenses in defending against the same. 
  
 (b) The Depositor shall indemnify, defend and hold harmless the Issuer, the
Owner Trustee, the Indenture Trustee, the Noteholders and Residual Interestholder and any of the officers, directors, employees and agents of the Issuer, the Owner Trustee and the Indenture Trustee 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 Issuer’s violation of federal or state securities laws in connection with the offering and sale of the Notes or the Residual Interest. 
  
 (c) The Depositor shall indemnify, defend and hold harmless the Owner Trustee and the Indenture Trustee and their respective
officers, directors, employees and agents from and against all costs, expenses, losses, claims, damages and liabilities arising out of or incurred in connection with the acceptance or performance of the trusts and duties herein and in the Trust
Agreement contained, in the case of the Owner Trustee, and herein and in the Indenture contained, in the case of the Indenture Trustee, except to the extent that such cost, expense, loss, claim, damage or liability: (i) in the case of the Owner
Trustee, shall be due to the willful misfeasance, bad faith or negligence (except for errors in judgment) of the Owner Trustee or, in the case of the Indenture Trustee, shall be due to the willful misfeasance, bad faith or negligence (except for
errors in judgment) of the Indenture Trustee; or (ii) in the case of the Owner Trustee, 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. 

 
 (d) The Depositor shall indemnify, defend and hold harmless the Issuer,
the Owner Trustee and the Indenture Trustee from and against any loss, damages, penalties, fines, forfeitures, legal fees and related costs, judgments, and other costs and expenses resulting from any claim, demand, defense or assertion based on or
grounded upon, or resulting from, a breach of the Depositor’s representations and warranties contained in this Agreement, except that the Depositor shall not be liable for any indirect damages or for any loss, damage, penalty, fine,
forfeiture, legal fees and related costs, judgments and other costs and expenses to the extent, in the case of the Issuer, shall be due to the willful misconduct of the Issuer, or in the case of the 

  

					
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Owner Trustee, shall be due to the willful misfeasance, bad faith or negligence (except for errors in judgment) of the Owner Trustee or, in the case of the
Indenture Trustee, shall be due to the willful misfeasance, bad faith or negligence (except for errors in judgment) of the Indenture Trustee. 
  
 (e) The Depositor shall pay any and all taxes levied or assessed upon all or any part of the Owner Trust Estate (other than any taxes expressly excluded
from the Depositor’s responsibilities pursuant to this Section 6.04). 
  
 Indemnification under this Section shall survive the resignation or removal of the Owner Trustee or the Indenture Trustee and the termination of this Agreement and the other Basic Documents 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 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 6.05 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 by the Depositor pursuant to Section 3.01 shall have been breached (unless the applicable breach
shall have been cured, or the applicable Receivable shall have been purchased in accordance therewith), (ii) the Depositor shall have delivered to the Owner Trustee and the Indenture Trustee an Officer’s 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 financing statements and continuation statements and amendments thereto have been executed and filed that are necessary fully to preserve and protect the interest of the Owner Trustee 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 clauses (a), (b) or
(c) above. 
  
 SECTION 6.06 Limitation on Liability of
Depositor and Others. The Depositor and any director, officer, 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 

  

					
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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 6.07 Depositor May
Own Notes. The Depositor and any Affiliate thereof may in its individual or any other capacity become the owner or pledgee of Notes with the same rights as it would have if it were not the Depositor or an Affiliate thereof, except as expressly
provided herein (including in the proviso to the definition of “Outstanding” in Appendix A) or in any other Basic Document. 
  
 SECTION 6.08 Notice of Events. The Depositor shall give each of the Rating Agencies prior written notice of any amendment to its articles of
incorporation. The Depositor shall give each Rating Agency prior written notice of any issuance by the Depositor of any debt not rated by such Rating Agency. 
  
 SECTION 6.09 Sarbanes-Oxley Act Requirements. To the extent any documents are required to be filed or any
certification is required to be made with respect to the Issuer or the Notes pursuant to the Sarbanes-Oxley Act, the Depositor shall prepare and execute any such document or certification and is authorized to file such document or certification on
behalf of the Issuer. 
  
 ARTICLE VII 
  
 The Servicer 
  
 SECTION 7.01 Representations and Warranties of the Servicer. E*Trade
Consumer Finance makes the following representations and warranties on which each of the Transferor, the Depositor and the Issuer is deemed to have relied in acquiring the Receivables. Such representations and warranties speak as of the execution
and delivery of this Agreement and as of the Closing Date but shall survive (a) the transfer and assignment of the Receivables to the Issuer and the Grant thereof to the Indenture Trustee pursuant to the Indenture and (b) the removal of E*Trade
Consumer Finance as Servicer. 
  
 (i) E*Trade
Consumer Finance is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware with the full power and authority to own and conduct its business as it is presently conducted by E*Trade Consumer
Finance. E*Trade Consumer Finance is or shall be in compliance with the laws of any state to the extent necessary to insure the enforceability of each Receivable and the servicing of the Receivables in accordance with the terms of this Agreement.

  
 (ii) E*Trade Consumer Finance has the full
power and authority to consummate all transactions contemplated by this Agreement. E*Trade Consumer Finance has duly authorized the execution, delivery and performance of this Agreement, has duly executed and delivered this Agreement and this
Agreement constitutes a legal, valid and binding obligation of E*Trade Consumer Finance, enforceable against it in accordance with its terms. 
  
 (iii) Neither the execution and delivery of this Agreement by E*Trade Consumer Finance, the acquisition or origination of the Receivables
by E*Trade 

  

					
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Consumer Finance, the consummation by E*Trade Consumer Finance of the transactions contemplated hereby, nor the fulfillment of or compliance by E*Trade
Consumer Finance with the terms and conditions of this Agreement shall conflict with or result in a breach of any of the terms of the charter or by-laws of E*Trade Consumer Finance or any legal restriction or any agreement or instrument to which
E*Trade Consumer Finance is now a party or by which it is bound, or constitute a default or result in an acceleration under any of the foregoing, or result in the violation of any law, rule, regulation, order, judgment or decree to which E*Trade
Consumer Finance or its property is subject. 
  
 (iv) E*Trade Consumer Finance does not believe, nor does it have any reason or cause to believe, that it cannot perform each and every covenant of E*Trade Consumer Finance contained in this Agreement. 
  
 (v) There is no litigation pending or, to the knowledge of
E*Trade Consumer Finance, threatened, which if determined adversely to E*Trade Consumer Finance would adversely affect the execution, delivery or enforceability of this Agreement, or the ability of E*Trade Consumer Finance to service the Receivables
hereunder in accordance with the terms hereof or which would have a material adverse effect on the financial condition of E*Trade Consumer Finance. 
  
 (vi) No consent, approval, authorization or order of any court or governmental agency or body is required for the execution, delivery and
performance by E*Trade Consumer Finance of or compliance by E*Trade Consumer Finance with this Agreement or the consummation by E*Trade Consumer Finance of the transactions contemplated by this Agreement. 
  
 (vii) The collection practices used by E*Trade Consumer
Finance with respect to each Receivable have been in all respects legal, proper, prudent and customary in the origination and servicing of receivables similar to the Receivables. 
  
 (viii) The chief executive office of E*Trade Consumer Finance is located at 3353 Michelson Drive,
2nd Floor, Irvine, California 92612. 
  
 (ix) Neither the representations and warranties of E*Trade Consumer Finance set forth in this Agreement nor
any statement, report or other document furnished or to be furnished by E*Trade Consumer Finance in connection with or pursuant to this Agreement or in connection with the transactions contemplated hereby contains any untrue statement of fact or
omits to state a fact necessary to make the statements contained therein not misleading under the circumstances under which such statements were made. 
  
 SECTION 7.02 Indemnities, etc. 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 indemnify, defend and hold harmless the Issuer, the Owner Trustee, the Indenture Trustee, the Noteholders, the Residual Interestholder and the Depositor and any of the officers, directors, employees and agents of the Issuer, the Owner
Trustee and the 

  

					
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Indenture Trustee 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 thereof of a Financed Asset. 
  
 (b) The Servicer shall indemnify, defend and hold harmless the Issuer, the Owner Trustee, the Indenture Trustee, the Depositor, the Noteholders, the Residual Interestholder and any of the officers, directors,
employees and agents of the Issuer, the Owner Trustee and the Indenture Trustee from and against any and all costs, expenses, losses, claims, damages and liabilities to the extent that such cost, expense, loss, claim, damage or liability arose out
of, or was imposed upon any such Person through, the negligence, willful misfeasance or bad faith of the Servicer in the performance of its duties under the Transfer and Servicing Agreement or by reason of reckless disregard of its obligations and
duties under the Transfer and Servicing Agreement. 
  
 (c) The
Servicer agrees to pay, reimburse or indemnify, as applicable, when due the compensation and any other amounts, including, without limitation, any indemnity amounts, due to the Indenture Trustee and the Owner Trustee pursuant to Section 6.07
of the Indenture and Section 8.02 of the Trust Agreement (in the event the Issuer or the Depositor, as applicable, cannot fully indemnify the Indenture Trustee or the Owner Trustee), as applicable. 
  
 For purposes of this Section, in the event of the termination of the rights
and obligations of E*Trade Consumer Finance (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. 
  
 Indemnification and other payments under this Section shall survive the resignation or removal of the Owner Trustee or the Indenture Trustee or the
termination of this Agreement and the Indenture 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) into which the
Servicer may be merged or consolidated, (b) resulting from any merger or consolidation to which the Servicer is a party, or (c) succeeding to the properties and assets of the Servicer substantially as a whole, which Person (in each of the cases
contemplated by clauses (a) through (c)) 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 (i) 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, (ii) the Servicer shall have delivered to the Owner Trustee and the Indenture Trustee an Officer’s 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 

  

					
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complied with, (iii) the Rating Agency Condition shall have been satisfied with respect to such transaction and (iv) the Servicer shall have delivered to the
Owner Trustee and the Indenture Trustee an Opinion of Counsel stating that, in the opinion of such counsel, either (A) all financing statements and continuation statements and amendments thereto have been executed 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) 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. 
  
 SECTION 7.04 Limitation on Liability of Servicer and Others. Neither the Servicer nor any of the directors, officers, employees or agents of the Servicer shall be under any liability to the Issuer, the
Noteholders or the Residual Interestholder 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 the Servicer’s duties under this Agreement or by reason of reckless disregard of
obligations and duties under this Agreement. The Servicer and any director, officer, employee or agent of the Servicer may rely in good faith on any document of any kind prima facie properly executed and submitted by any Person respecting any
matters arising under this Agreement. 
  
 The Servicer shall not
be under any obligation to appear in, prosecute or defend any legal action that is not incidental to the Servicer’s servicing responsibilities under 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 Noteholders under the Indenture and of the Residual Interestholder under the Trust Agreement. 
  
 SECTION 7.05 Resignation of Servicer. Subject to the provisions of Section 7.03, the Person which is the Servicer shall not resign from the
obligations and duties hereby imposed on it as Servicer under this Agreement except upon a determination that the performance of its duties under this Agreement shall no longer be permissible under applicable law. Notice of any such determination
permitting the resignation of the Servicer shall be communicated in writing to the Owner Trustee and the Indenture Trustee 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 obligations and duties of
the resigning Servicer in accordance with Section 8.02. In addition, in effecting such resignation, the resigning Servicer shall cooperate with the successor Servicer, the Indenture Trustee and the Owner Trustee in effecting the termination
of its responsibilities and rights as 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 it for deposit, or shall thereafter be received by
it with respect to any Receivable. The resigning Servicer shall also give the successor Servicer access to its records, software, systems, facilities and employees in order to facilitate the servicing transfer. All reasonable costs and expenses

  

					
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(including attorneys’ fees) incurred in connection with transferring the Receivable Files and the Servicer’s duties to the successor Servicer and
amending this Agreement to reflect such succession as Servicer shall be paid by E*Trade Consumer Finance upon presentation of reasonable documentation of such costs and expenses. Upon receipt of notice of the occurrence of any such resignation, the
Owner Trustee shall give notice thereof to the Rating Agencies. 
  
 ARTICLE VIII 
  
 Servicer Default 
  
 SECTION 8.01 Servicer Default. If any one of the following events (a
“Servicer Default”) shall occur and be continuing: 
  
 (a) any failure by the Servicer to deliver to the Indenture Trustee for deposit in any of the Trust Accounts or the Residual Interestholder Distribution Account any required payment or to direct the Indenture Trustee to make any required
distributions therefrom, which failure continues unremedied for a period of three (3) 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 the Servicer; or 
  
 (b) any failure by the Servicer duly to
observe or to perform in any material respect any other covenant or agreement of the Servicer set forth in this Agreement or any other Basic Document, which failure (i) materially and adversely affects the rights of the Noteholders and (ii)
continues unremedied for a period of 60 days after the date on which written notice of such failure 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 Note Balance of all of the Notes then Outstanding; 
  
 (c) the occurrence of an Insolvency Event with respect to the Servicer; or 
  
 (d) the Transferor receives notice that it is classified by the Office of Thrift Supervision in a capital category lower
than “Adequately Capitalized” in accordance with, and as defined in, 12 C.F.R. 565. 
  
 then, and in each and every case, so long as the Servicer Default shall not have been remedied, the Indenture Trustee acting at the direction of the Holders of Notes evidencing not less than a majority of the Note
Balance of the Notes of the Controlling Class, by notice then given in writing to the Servicer, the Owner Trustee, the Issuer, each Rating Agency, the Back-Up Servicer and the Noteholders may terminate all the rights and obligations (other than the
obligations set forth in Section 7.02) of the Servicer under this Agreement. On or after date described in Section 8.02(a), all the responsibilities, duties and liabilities of the Servicer under this Agreement, whether with respect to
the Notes or the Receivables or otherwise, shall, without further action, pass to and be vested in the such successor Servicer, the Indenture Trustee or the Back-Up Servicer as may be appointed under Section 8.02 in any case in accordance
with the terms of Section 8.02; and, without limitation, the Indenture Trustee and the Owner Trustee are hereby authorized and empowered to execute and deliver, for the benefit of the predecessor Servicer, as attorney-in-fact or otherwise,
any and all documents and other instruments, and to do 

  

					
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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 any Receivable. The predecessor Servicer shall also give the successor Servicer access to its records, software, systems, facilities and employees in order to facilitate the servicing transfer. All reasonable costs and expenses
(including attorneys’ fees) incurred in connection with transferring the Receivable Files and the Servicer’s duties to the successor Servicer and amending this Agreement to reflect such succession as Servicer pursuant to this Section shall
be paid by the predecessor Servicer, or to the extent not paid by such predecessor Servicer after demand therefor, by the Issuer in accordance with the priority of payment for such amount described in Section 8.2 of the Indenture, 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. Notwithstanding anything herein to the contrary,
in no event shall the Indenture Trustee be liable for any transition expenses, servicing fee or for any differential in the amount of the Servicer fee paid hereunder and the amount necessary to induce any successor Servicer to act as successor
Servicer or be liable or be required to make any Advances, nor shall the Indenture Trustee be required to act as successor Servicer or perform any duties of the successor Servicer. 
  
 The Owner Trustee agrees that if it gives a notice under clause (a) or clause (b) above, the Owner Trustee
shall simultaneously send a copy of such notice to the Indenture Trustee. The Indenture Trustee agrees that if it gives a notice under clause (a) or clause (b) above, the Indenture Trustee shall simultaneously send a copy of such
notice to the Owner Trustee. 
  
 SECTION 8.02 Appointment of
Successor. 
  
 (a) Upon the Servicer’s receipt of notice
of termination pursuant to Section 8.01 or the Servicer’s resignation in accordance with Section 7.05 and the other 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 later of (x) 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 (y) if the Back-Up Servicer will be the
successor Servicer, expiry of the Transfer Period; and, in the case of resignation, until the later of (i) the earlier of the expiry of the Transfer Period (if the Back-Up Servicer will be the successor Servicer) and 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 (ii) the date upon which the predecessor Servicer shall become
unable to act as Servicer, as specified in the notice of resignation and accompanying Opinion of Counsel. In the event of the Servicer’s termination hereunder, the Back-Up Servicer will become the successor Servicer pursuant to the terms of the
Back-Up Servicing Agreement. In the event that the Back-Up Servicer or another successor Servicer has not been appointed, and accepted such appointment, at the time when the predecessor Servicer has ceased to act as Servicer in accordance with this
Section, the Indenture Trustee without further action shall automatically be 

  

					
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appointed the successor Servicer and the Indenture Trustee shall be entitled to the Servicing Fee. Notwithstanding the above, the Indenture Trustee shall, if
it shall be legally unable or unwilling to act, appoint, or petition a court of competent jurisdiction to appoint, any established institution, having a net worth of not less than $100,000,000 and whose regular business shall include the servicing
of recreational vehicle and boat receivables, as the successor to the Servicer under this Agreement and the successor Servicer shall accept its appointment by a written assumption in form acceptable to the Owner Trustee and the Indenture Trustee.

  
 (b) Upon appointment, the successor Servicer (including the
Back-Up Servicer or 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 all the rights granted to the predecessor Servicer by, or in the case of the Back-Up Servicer, certain of those responsibilities, duties and liabilities as described
in the Back-Up Servicing Agreement, the terms and provisions of this Agreement. 
  
 (c) The Servicer may not resign except as contemplated by Section 7.05. 
  
 (d) In no event shall the Back-Up Servicer or the Indenture Trustee be liable for the acts or omissions of the predecessor Servicer. 
  
 SECTION 8.03 Repayment of Advances. If the Servicer shall change, the
predecessor Servicer shall be entitled to receive reimbursement for Outstanding Advances pursuant to Section 5.04 with respect to all Advances made by the predecessor Servicer. 
  
 SECTION 8.04 Notification to Noteholders. Upon any termination of, or appointment of a successor to, the Servicer
pursuant to this Article VIII, the Indenture Trustee shall give prompt written notice thereof to Noteholders and the Rating Agencies. 
  
 SECTION 8.05 Waiver of Past Servicer Defaults. The Holders of the majority of the Note Balance of the Controlling Class may, on behalf of all
Noteholders, waive in writing any Servicer Default and its consequences. Upon any such waiver of a past Servicer Default, such Servicer Default shall cease to exist and 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. 
  
 ARTICLE IX 
  
 Termination 
  
 SECTION 9.01 Optional Purchase
of All Receivables. If the Pool Balance is less than or equal to ten percent (10%) of the Initial Pool Balance at any time, then the Servicer shall have the option to purchase all (but not less than all) of the Owner Trust Estate, other than the
Trust Accounts, on any Payment Date following such day. To exercise such option, the Servicer shall deposit pursuant to Section 5.05 in the Collection Account an amount equal to the aggregate of the Purchase Amounts for the Receivables
(provided that if the Obligor of a Receivable is financially unable to make some or all of the payments on such Receivable, the Purchase Amount in respect of such Receivable shall be the fair market value of such Receivable as 

  

					
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reasonably determined by the Servicer), plus the appraised value of any other property held by the Trust other than the Trust Accounts (the value of any
other property held by the Trust, other than the Trust Accounts to be determined as of the last day of the Collection Period preceding such Payment Date by an appraiser mutually agreed upon by the Servicer, the Owner Trustee and the Indenture
Trustee), and shall succeed to all interests in and to the Trust. Notwithstanding the foregoing, the Servicer shall not be permitted to exercise such option unless the resulting distribution to the Noteholders on such Payment Date would be
sufficient to pay the sum of the Note Balance of all Notes that are Outstanding on such date plus all accrued and unpaid interest thereon. This Section 9.01 is subject to the terms and conditions of Section 10.01 of the Indenture.

  
 SECTION 9.02 Termination of Obligations. (a) Unless
otherwise provided herein, the obligations of the Servicer, the Depositor, the Indenture Trustee and the Owner Trustee under this Agreement shall terminate upon the earliest of (i) the maturity or other liquidation of the last Receivable and the
disposition of any amounts, in accordance herewith and with the terms of the other Basic Documents, received upon liquidation of any such last remaining Receivable, (ii) the payment to the Noteholders of all amounts required to be paid to them
hereunder and under the other Basic Documents and (iii) the completion of the optional purchase described in Section 9.01 and the payment in full of all amounts required to be paid in connection therewith. 
  
 (b) Following the satisfaction and discharge of the Indenture and the payment
in full of the principal of and interest on all the Notes, the Residual Interestholder shall succeed to the rights of the Noteholders hereunder and the Owner Trustee shall succeed to the rights of, and assume the obligations of, the Indenture
Trustee pursuant to this Agreement. 
  
 ARTICLE X 
  
 Miscellaneous 
  
 SECTION 10.01 Amendment. 
  
 (a) This Agreement may be amended by the Issuer, the Depositor and the
Servicer, with the consent of the Indenture Trustee and the consent of the Back-Up Servicer (which consent shall not be unreasonably withheld, conditioned or delayed by the Back-Up Servicer), but without the consent of any other Person (including
the Noteholders and the Residual Interestholder) 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 Residual
Interestholder; provided, however, that such action 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 Noteholder or
the Residual Interestholder. 
  
 (b) This Agreement may also be
amended from time to time by the Issuer, the Depositor and the Servicer, with the consent of the Indenture Trustee, the consent of the Majority Noteholders, the consent of the Residual Interestholder and the consent of the Back-Up Servicer (which
consent shall not be unreasonably withheld, conditioned or delayed by the Back-Up Servicer), for the purpose of adding any provisions to or changing in any manner or eliminating 

  

					
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any of the provisions of this Agreement or of modifying in any manner the rights of the Noteholders or the Residual Interestholder; provided,
however, that no such amendment shall (i) increase or reduce in any manner the amount of, or accelerate or delay the timing of, collections of payments on Receivables or distributions that shall be required to be made for the benefit of the
Noteholders or (ii) reduce the aforesaid percentage of the Note Balance of the Notes or the Controlling Class of Notes required to consent to any such amendment, without the consent of the Holders of all of the Notes that are Outstanding.

  
 (c) Promptly after the execution of any such amendment or
consent, the Owner Trustee shall furnish written notification of the substance of such amendment or consent to the Indenture Trustee and each of the Rating Agencies. It shall not be necessary for the consent of Noteholders or the Residual
Interestholder 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 or the consent to any amendment to
this Agreement, the Owner Trustee and the Indenture Trustee shall be entitled to receive and conclusively rely upon (i) an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this Agreement and (ii) the
Opinion of Counsel referred to in Section 10.02(i). The Owner Trustee and the Indenture Trustee may, but shall not be obligated to, enter into or consent to 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; Change of Name, Identity, Corporate Structure or Location of the Depositor, Etc. 
  
 (a) The Depositor shall execute and file such financing statements and cause
to be executed and filed such continuation statements, all in such manner and in such places as may be required by law fully to preserve, maintain and protect the interest of the Issuer and of the Indenture Trustee in the Receivables and in the
proceeds thereof. The 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) The Depositor shall not change its location, name,
identity or corporate structure in any manner that would, could or might make any financing statement or continuation statement filed in accordance with paragraph (a) above seriously misleading within the meaning of Section 9- 402(7) of the
UCC, unless it shall have given the Owner Trustee and the Indenture Trustee at least five days’ prior written notice thereof and shall have promptly filed appropriate amendments to all previously filed financing statements or continuation
statements. 
  
 (c) The Depositor shall give the Owner Trustee and
the Indenture Trustee at least 60 days’ prior written notice of any relocation of its chief executive office or organization in any state other than Nevada if, as a result of such relocation or organization, the applicable provisions of the UCC
would require the filing of any amendment of any previously filed financing or continuation statement or of any new financing statement and shall promptly file any such amendment or new financing statement. The Servicer shall at all times maintain
each office from which it shall service Receivables, and its principal executive office, within the United States of America. 
  

					
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 (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 transfer under this Agreement of the Receivables, the
Servicer’s master computer records (including any backup archives) that refer to a Receivable shall indicate clearly the interest of the Issuer and the Indenture Trustee in such Receivable and that such Receivable is owned by the Issuer and has
been Granted to the Indenture Trustee. Indication of the Issuer’s and the Indenture Trustee’s interest in a Receivable shall be deleted from or modified on the Servicer’s computer systems when, and only when, the related Receivable
shall have been paid in full or shall have become a Purchased Receivable. 
  
 (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 recreational vehicle or boat 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 transferred to and is owned by the Issuer and has been Granted to the Indenture Trustee. 
  
 (g) The Servicer shall permit the Indenture Trustee and its agents at any time during normal business hours to inspect, audit and make copies of and
abstracts from the Servicer’s records regarding any Receivable. 
  
 (h) Upon request, the Servicer shall furnish to the Owner Trustee or to the Indenture Trustee, within five (5) Business Days, a list of all Receivables (by contract number and name of Obligor) then held as part of the Trust, together with a
reconciliation of such list to the Schedule of Receivables and to each of the Servicer’s Certificates furnished before such request indicating removal of Receivables from the Trust. 
  
 (i) The Servicer or, if a successor Servicer is then servicing, the Depositor, shall deliver to the Owner Trustee and the
Indenture Trustee, promptly after the execution and delivery of this Agreement, and of each amendment hereto and on each Payment Date occurring in March, an Opinion of Counsel (which may be an employee of the Servicer) stating that, in the opinion
of such counsel, either (A) all financing statements and continuation statements have been executed and filed that are necessary fully to preserve and protect the interest of the Owner Trustee 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) no such action shall be necessary to preserve and protect such interest. Each such Opinion of Counsel shall specify any action
necessary (as of the date of such opinion) to be taken in the following year to preserve and protect such interest. 
  

					
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 (j) The Depositor shall, to the extent required by applicable law, cause the Notes and Certificates 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, directions, communications and instructions upon, to, or by the Depositor, the Servicer, the Owner
Trustee, the Indenture Trustee or the Rating Agencies under this Agreement shall be in writing, personally delivered or mailed by registered or certified mail or delivered by prepaid courier service and shall be deemed to have been duly given upon
receipt (a) in the case the Servicer (so long as E*Trade Consumer Finance is the Servicer), to 3353 Michelson Drive, 2nd Floor, Irvine, California 92612, Attention: Treasurer or Chief Legal Officer, (b) in the case of the Depositor, to 3355 Michelson Drive, Suite 350, Irvine, California 92512, Attention: President, (c) in the case of the Issuer or the
Owner Trustee, at the Corporate Trust Office with respect to the Owner Trustee, (d) in the case of the Indenture Trustee, at the Corporate Trust Office with respect to the Indenture Trustee, (e) in the case of Standard & Poor’s, to Standard
& Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., 55 Water Street, New York, New York 10041, Attention: Asset Backed Surveillance Group and (f) in the case of Moody’s, to Moody’s Investors Service, 99
Church Street, New York, New York 10007, Attention: Moody’s ABS Monitoring Group; or, as to each of the foregoing, at such other address as shall be designated by written notice to the other Persons listed in this Section. 
  
 SECTION 10.04 Assignment. Notwithstanding anything to the contrary
contained herein, except as provided in this Section, in Sections 6.05 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. The parties hereto hereby acknowledge and consent to the mortgage, pledge, assignment and grant of a security interest by the Issuer to the Indenture Trustee pursuant to the Indenture for the benefit of the Noteholders of all right, title
and interest of the Issuer in, to and under the Depositor Conveyed Property and the assignment of any or all of the Issuer’s rights under this Agreement to the Indenture Trustee. 
  
 SECTION 10.05 Limitations on Rights of Others. The provisions of this Agreement are solely for the benefit of the
Depositor, the Servicer, the Issuer, the Owner Trustee, the Indenture Trustee, the Noteholders and the Residual Interestholder, and, except as expressly provided in this Agreement, nothing in this Agreement 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. 
  

					
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 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 CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT
OF LAWS PRINCIPLES, EXCEPT TO THE EXTENT THAT THE PERFECTION (AND THE EFFECT OF PERFECTION OR NON-PERFECTION) OF THE INTERESTS OF ANY PERSON IN CONVEYED PROPERTY ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK.

  
 SECTION 10.10 Nonpetition Covenants.
Notwithstanding any prior termination of this Agreement, the Servicer and the Depositor shall not acquiesce, petition or otherwise invoke or cause the Issuer to invoke the process of any court or government authority for the purpose of commencing or
sustaining a case against the Issuer or the Boat Mortgage Trust under any federal or state bankruptcy, insolvency or similar law, or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the
Issuer or any part of the property of the Issuer or the Boat Mortgage Trust, or ordering the winding up or liquidation of the affairs of the Issuer. Notwithstanding any prior termination of this Agreement, the Servicer and the Issuer shall not
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 part of its property, or ordering the winding up or liquidation of the affairs of the Depositor.

  
 SECTION 10.11 Limitation of Liability of Owner Trustee and
Indenture Trustee. 
  
 (a) Notwithstanding anything contained
herein to the contrary, this Agreement has been countersigned by Wells Fargo Bank, National Association, not in its individual capacity but solely in its capacity as Owner Trustee of the Issuer and in no event shall Wells Fargo Bank, National
Association, in its individual capacity or, except as expressly provided in the Trust Agreement, as beneficial owner of the Issuer have any liability for the representations, warranties, covenants, agreements or other obligations of the Issuer
hereunder or in any of the certificates, notices or agreements delivered pursuant hereto, as to all of which recourse shall be had solely to the assets of the Issuer. For all purposes of this Agreement, in the performance of its duties or
obligations hereunder or in the performance of any duties or obligations of the Issuer hereunder, the Owner Trustee shall be subject to, and entitled to the benefits of, the terms and provisions of Articles VI, VII and VIII of
the Trust Agreement. 
  
 (b) Notwithstanding anything contained
herein to the contrary, this Agreement has been accepted by JPMorgan Chase Bank, N.A., not in its individual capacity but solely as Indenture Trustee and in no event shall JPMorgan Chase Bank, N.A. have any liability for the representations,
warranties, covenants, agreements or other obligations of the Issuer hereunder or in any of the certificates, notices or agreements delivered pursuant hereto, as to all of which 

  

					
	 	 	34	 	 E*TRADE 2004-1
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recourse shall be had solely to the assets of the Issuer. The Indenture Trustee shall be entitled to the same rights, protections, immunities and indemnities
provided to it in the Indenture. 
  
 SECTION 10.12
[Reserved]. 
  
 SECTION 10.13 Separate Corporate
Existence. The Depositor hereby acknowledges that the Trust is entering into the transactions contemplated by the Basic Documents in reliance upon the Depositor’s identity as a legal entity separate from E*Trade Consumer Finance and the
Transferor. Therefore, the Depositor shall take all reasonable steps to make it apparent to third Persons that each of E*Trade Consumer Finance and the Transferor is an entity with assets and liabilities distinct from those of the Depositor and any
other Affiliate and that the Depositor is not a division of E*Trade Consumer Finance or the Transferor or any other Person. Without limiting the foregoing, the Depositor shall (and shall cause each of E*Trade Consumer Finance and the Transferor to)
operate and conduct its business and otherwise act in a manner which is consistent with the following: 
  
 (a) The Depositor shall maintain its own stationery and other business forms separate from those of any other Person (including E*Trade Consumer Finance
and the Transferor) and shall conduct business in its own name. 
  
 (b) The Depositor shall not need to maintain any office space of its own (apart from the office space used by Servicer) as part of its operations. If the Depositor utilizes any office space, such office space shall be clearly demarcated as
being allocated to Depositor. 
  
 (c) E*Trade Consumer Finance or
the Transferor may issue consolidated financial statements that shall include the Depositor, but such financial statements shall contain a footnote to the effect that E*Trade Consumer Finance sold certain Receivables to the Transferor, the
Transferor then sold the Receivables to the Depositor and the Depositor in turn transferred the Receivables to the Trust. Separate financial statements shall also be prepared for the Depositor. In addition to the aforementioned footnote to any
consolidated financial statement, E*Trade Consumer Finance, the Transferor and the Depositor shall take certain actions to disclose publicly the Depositor’s separate existence and the transactions contemplated hereby, including through the
filing of UCC financing statements. None of E*Trade Consumer Finance, the Transferor and the Depositor has concealed or shall conceal from any interested party any transfers contemplated by the Basic Documents, although Obligors shall not be
affirmatively informed in the first instance of the transfer of their obligations. 
  
 (d) There shall be at all times at least one (1) Independent Director to be elected to the board of directors of the Depositor, and the Depositor shall compensate the Independent Director. 
  
 (e) The Depositor shall not have its own employees, and the Depositor’s
business relating to the Receivables shall be primarily conducted through E*Trade Consumer Finance as Servicer. However, any allocations of direct, indirect or overhead expenses for items shared among the Depositor, the Transferor and E*Trade
Consumer Finance that are not included as part of the Servicing Fee are and shall be made among such entities to the extent practical on the 

  

					
	 	 	35	 	 E*TRADE 2004-1
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basis of actual use or value of services rendered and otherwise on a basis reasonably related to actual use or the value of services rendered. 
  
 (f) E*Trade Consumer Finance, the Depositor and the Transferor shall maintain
their assets and liabilities in such a manner that it is not costly or difficult to segregate, ascertain or otherwise identify the individual assets and liabilities of the Depositor from those of the others or from those of any other Person,
including any other subsidiary or other Affiliate of E*Trade Consumer Finance. Except as set forth below, the Depositor shall maintain its own books of account and corporate records separate from E*Trade Consumer Finance, the Transferor, and any
other subsidiary or other Affiliate of E*Trade Consumer Finance. The Depositor shall not commingle or pool its funds (or other assets) or liabilities with those of E*Trade Consumer Finance, the Transferor, or any other subsidiary or Affiliate of
E*Trade Consumer Finance except as specifically provided in this Agreement with respect to the temporary commingling of collections of the Receivables and except with respect to the retention by E*Trade Consumer Finance, in its capacity as Servicer,
of the books and records pertaining to the Receivables. However, E*Trade Consumer Finance shall not generally make the books and records relating to the Receivables available to any of the creditors of E*Trade Consumer Finance or other interested
persons, and in the rare instance when it does so, E*Trade Consumer Finance simultaneously also shall provide the marked computer records and shall make such books and records available for the sole purpose of permitting creditors and other
interested parties of E*Trade Consumer Finance to verify the existence of E*Trade Consumer Finance and performance of its duties as Servicer. The Depositor shall not maintain joint bank accounts or other depository accounts to which E*Trade Consumer
Finance, the Transferor, or any other subsidiary or Affiliate of E*Trade Consumer Finance (other than E*Trade Consumer Finance solely in its capacity as Servicer) has independent access. 
  
 (g) Each of E*Trade Consumer Finance and the Transferor, on the one hand, and the Depositor, on the other hand, shall
strictly observe corporate formalities, including with respect to its dealings with the other. Specifically, no transfer of assets between E*Trade Consumer Finance and the Transferor on the one hand, and the Depositor, on the other hand, shall be
made without adherence to corporate formalities. 
  
 (h) Neither
the Depositor, on the one hand, or E*Trade Consumer Finance, the Transferor, or any other subsidiary or other Affiliate of E*Trade Consumer Finance, on the other hand, shall be, or shall hold itself out to be, responsible for the debts of the other,
or, except as provided in this Agreement with respect to the duties of the Servicer, the decisions or actions respecting the daily business and affairs of the other, except as contemplated by the expense reimbursement and indemnification provisions
of the Basic Documents and any underwriting agreement executed in connection therewith. 
  
 (i) All distributions made by the Depositor to it shareholder(s) shall be made in accordance with applicable law. 
  
 (j) Any other transactions between E*Trade Consumer Finance and the Depositor or E*Trade Consumer Finance and the Transferor permitted by (although not
expressly provided for in the Basic Documents) shall be fair and equitable to E*Trade Consumer Finance, the Depositor and the Transferor, shall be the type of transaction that would be entered into by a 

  

					
	 	 	36	 	 E*TRADE 2004-1
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prudent Person in the position of E*Trade Consumer Finance, the Depositor or the Transferor vis a vis each other, and shall be on terms that are at
least favorable as may be obtained from a Person who is not E*Trade Consumer Finance, the Depositor or the Transferor. 
  
 (k) The Depositor is not named, and has not entered into any agreement to be named, directly or indirectly, as a direct or contingent beneficiary or loss
payee on any insurance policy covering the property of E*Trade Consumer Finance, the Transferor or any other subsidiary or other Affiliate of E*Trade Consumer Finance except for any insurance policy with respect to the liability of directors and
officers maintained by the Depositor (or any of its Affiliates) for the benefit of its direct and indirect subsidiaries. 
  
 SECTION 10.14 Submission to Jurisdiction. Each of the parties hereto hereby irrevocably and unconditionally: 
  
 (a) SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING
RELATING TO THIS AGREEMENT OR ANY OTHER BASIC DOCUMENT OR FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE NON-EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK, THE COURTS OF THE UNITED STATES OF
AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF; 
  
 (b) CONSENTS THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS AND WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION
OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE SAME; 
  
 (c) AGREES THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO SUCH
PERSON AT ITS ADDRESS SET FORTH IN SECTION 10.03 OR AT SUCH OTHER ADDRESS NOTIFIED TO THE OTHER PARTIES TO THIS AGREEMENT PURSUANT THERETO; AND 
  
 (d) AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT TO SUE IN
ANY OTHER JURISDICTION. 
  
 SECTION 10.15 Tax Treatment.
The parties hereto agree to treat (and E*Trade Consumer Finance shall cause the Transferor to treat) the Trust and the Notes for tax purposes in a manner which is consistent with the applicable tax treatment specified in the other Basic Documents.

  
 SECTION 10.16 Subordination of Claims. The
Depositor’s obligations under this Agreement are obligations solely of the Depositor and will not constitute a claim against the Depositor to the extent that the Depositor does not have funds sufficient to make payment of such obligations. In
furtherance of and not in derogation of the foregoing, each of the Issuer and 

  

					
	 	 	37	 	 E*TRADE 2004-1
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Servicer, by entering into this Agreement, hereby acknowledges and agrees that such Person has no right, title or interest in or to the Other Assets of the
Depositor. To the extent that, notwithstanding the agreements and provisions contained in the preceding sentence, each of the Issuer and Servicer either (i) asserts an interest or claim to, or benefit from, Other Assets, or (ii) is deemed to have
any such interest, claim to, or benefit in or from Other Assets, whether by operation of law, legal process, pursuant to applicable provisions of insolvency laws or otherwise (including by virtue of Section 1111(b) of the Bankruptcy Code or any
successor provision having similar effect under the Bankruptcy Code), then such Person further acknowledges and agrees that any such interest, claim or benefit in or from Other Assets is and will be expressly subordinated to the indefeasible payment
in full, which, under the terms of the relevant documents relating to the securitization or conveyance of such Other Assets, are entitled to be paid from, entitled to the benefits of, or otherwise secured by such Other Assets (whether or not any
such entitlement or security interest is legally perfected or otherwise entitled to a priority of distributions or application under applicable law, including insolvency laws, and whether or not asserted against the Depositor), including the payment
of post-petition interest on such other obligations and liabilities. This subordination agreement will be deemed a subordination agreement within the meaning of Section 510(a) of the Bankruptcy Code. Each of the Issuer and Servicer by entering into
or accepting this Agreement hereby will be further deemed to acknowledge and agree that no adequate remedy at law exists for a breach of this Section and the terms of this Section may be enforced by an action for specific performance. The provisions
of this Section will be for the third party benefit of those entitled to rely thereon and will survive the termination of this Agreement. 
  
 [SIGNATURES FOLLOW] 
  

					
	 	 	38	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

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

			
	E*TRADE RV AND MARINE TRUST 2004-1
	
	 By: Wells Fargo Bank, National Association, not in
 its individual capacity but solely as Owner Trustee
 on behalf of the Trust

		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 ETCF ASSET FUNDING CORPORATION,
 as
Depositor

		
	By: 	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 E*TRADE CONSUMER FINANCE CORPORATION,
 as Servicer

		
	By: 	 	 
	 Name:
	 	 
	 Title:
	 	 

  

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

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

		
	By: 	 	 
	 Name: 
	 	 
	 Title:
	 	 

  

					
	 	 	39	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

  
 APPENDIX A 

 
 DEFINITIONS 
  
 “Act” is defined in Section 11.03(a) of the
Indenture. 
  
 “Advance” means the amount of
interest, as of the close of business on the last day of a Collection Period, which the Servicer advances on the Receivables pursuant to Section 5.04 of the Transfer and Servicing Agreement. 
  
 “Affiliate” means, with respect to any specified Person, any
other Person controlling or controlled by or under common control with such specified Person. For the purposes of this definition, “control” when used with respect to any Person means the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
  
 “Affiliated Originator” means an originator of Contracts
that is affiliated with E*Trade Consumer Finance, the Transferor or the Depositor (including Thor Credit Corporation). 
  
 “Agreement” is defined in the Introductory Statement of the Transfer and Servicing Agreement. 
  
 “Amount Financed” means with respect to a Receivable, the
amount advanced toward the purchase price of the Financed Asset and any related costs. 
  
 “Annual Percentage Rate” or “APR” of a Receivable means the annual rate of finance charges stated in the related Contract. 
  
 “Assignment of Preferred Mortgage” means, with respect to
each Federally Documented Boat, an assignment in substantially the form attached as an exhibit to the Boat Mortgage Trust Agreement. 
  
 “Authorized Officer” means, with respect to the Issuer, any officer of the Owner Trustee or Depositor who is authorized to act for the
Owner Trustee or the Depositor, as applicable, in matters relating to the Issuer and who is identified on a signature resolution, an incumbency certificate or other similar certificate delivered by the Owner Trustee or the Depositor, as applicable,
to the Indenture Trustee on the Closing Date (as such list may be modified or supplemented from time to time thereafter). 
  
 “Available Funds” means, for any Payment Date and the related Collection Period, an amount equal to the sum of the following amounts: (a)
all Collections, (b) the Purchase Amount of each Receivable that became a Purchased Receivable during such Collection Period received by the Servicer during such Collection Period, (c) any amounts on deposit in the Reserve Account and (d) the
investment income accrued during such Collection Period from the investment of funds in the Trust Accounts. 
  

					
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 “Back-Up Servicer” means Systems & Services Technologies, Inc., a Delaware
corporation. 
  
 “Back-Up Servicing Agreement”
means that Back-Up Servicing Agreement dated as of December 16, 2004, between the Servicer and the Back-Up Servicer. 
  
 “Bank Flow Purchase Agreement” means, that certain Pool Purchase Agreement (Flow) dated as of March 16, 2004 between E*Trade Consumer
Finance and E*Trade Bank. 
  
 “Bank Portfolio Purchase
Agreement” means, that certain Sale, Assignment and Assumption Agreement effective December 31, 2003 between E*Trade Consumer Finance and E*Trade Bank. 
  

“Bank Purchase Agreement” means, the Bank Portfolio Purchase Agreement and the Bank Flow Purchase Agreement. 
  
 “Basic Documents” means the Transfer and Servicing
Agreement, the Depositor Sale Agreement, the Indenture, the Trust Agreement, the Boat Trust Agreement and any Assignments of Preferred Mortgage related thereto and the Note Depository Agreement and the other documents and certificates delivered in
connection therewith. 
  
 “Benefit Plan” means
(i) an employee benefit plan (as defined in Section 3(3) of ERISA) whether or not subject to the provisions of Title I of ERISA (including foreign and government plans), (ii) a plan described in Section 4975(e)(1) of the Code or (iii) any entity
whose underlying assets include “plan assets” by reason of an employee benefit plan’s or other plan’s investment in the entity. 
  
 “Boat Mortgage Trust” means the DFS Ganis Boat Mortgage Trust, formed pursuant to the Boat Mortgage Trust Agreement. 
  
 “Boat Mortgage Trust Agreement” means the Boat Mortgage
Trust Agreement dated as of May 1, 2001, among E*Trade Consumer Finance (including as assignee of Deutsche Financial Services Corporation) and the Boat Mortgage Trustee. 
  
 “Boat Mortgage Trustee” means the trustee of the Boat Mortgage Trust. As of the Closing Date, Wilmington
Trust Company is the Boat Mortgage Trustee. 
  
 “Book-Entry Notes” means a beneficial interest in the Notes, ownership and transfers of which shall be made through book entries by a Clearing Agency as described in Section 2.10 of the Indenture. 
  
 “Business Day” means any day other than a Saturday, a Sunday
or a day on which banking institutions or trust companies in the State of New York or in the principal place of business of the Servicer are authorized or obligated by law, regulation or executive order to remain closed. 
  
 “Certificated Item” means a “certificated
security” as defined in Section 8-102(a)(4) of the UCC. 
  

					
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 “Class” means any one of the classes of Notes; that is, the Class A-1 Notes, the Class
A-2 Notes, the Class A-3 Notes, the Class A-4 Notes, the Class A-5 Notes, the Class B Notes, the Class C Notes, the Class D Notes or the Class E Notes. 
  
 “Class A-1 Interest Rate” means 2.67% per annum (computed on the basis of a 360-day year consisting of twelve 30-day months). 

 
 “Class A-2 Interest Rate” means 3.13% per annum (computed
on the basis of a 360-day year consisting of twelve 30-day months). 
  
 “Class A-3 Interest Rate” means 3.62% per annum (computed on the basis of a 360-day year consisting of twelve 30-day months). 
  
 “Class A-4 Interest Rate” means 4.18% per annum (computed on the basis of a 360-day year consisting of twelve 30-day months). 

 
 “Class A-5 Interest Rate” means 4.58% per annum (computed
on the basis of a 360-day year consisting of twelve 30-day months). 
  
 “Class B Interest Rate” means 4.25% per annum (computed on the basis of a 360-day year consisting of twelve 30-day months). 
  
 “Class C Interest Rate” means 4.54% per annum (computed on the basis of a 360-day year consisting of twelve 30-day months). 

 
 “Class D Interest Rate” means 4.86% per annum (computed
on the basis of a 360-day year consisting of twelve 30-day months). 
  
 “Class E Interest Rate” means 0.00% per annum (computed on the basis of a 360-day year consisting of twelve 30-day months). 
  
 “Class A-1 Noteholder” means the Person in whose name a Class A-1 Note is registered in the Note Register. 
  
 “Class A-2 Noteholder” means the Person in whose name a
Class A-2 Note is registered in the Note Register. 
  
 “Class A-3 Noteholder” means the Person in whose name a Class A-3 Note is registered in the Note Register. 
  
 “Class A-4 Noteholder” means the Person in whose name a Class A-4 Note is registered in the Note Register. 
  
 “Class A-5 Noteholder” means the Person in whose name a
Class A-5 Note is registered in the Note Register. 
  
 “Class B Noteholder” means the Person in whose name a Class B Note is registered in the Note Register. 
  

					
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 “Class C Noteholder” means the Person in whose name a Class C Note is registered in the
Note Register. 
  
 “Class D Noteholder” means the
Person in whose name a Class D Note is registered in the Note Register. 
  
 “Class E Noteholder” means the Person in whose name a Class E Note is registered in the Note Register. 
  
 “Class A Notes” means the Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4 Notes and Class A-5 Notes. 
  
 “Class A-1 Notes” means the 2.67% Asset Backed Notes, Class
A-1, substantially in the form of Exhibit A to the Indenture. 
  
 “Class A-2 Notes” means the 3.13% Asset Backed Notes, Class A-2, substantially in the form of Exhibit A to the Indenture. 
  
 “Class A-3 Notes” means the 3.62% Asset Backed Notes, Class A-3, substantially in the form of Exhibit A to the Indenture.

  
 “Class A-4 Notes” means the 4.18% Asset
Backed Notes, Class A-4, substantially in the form of Exhibit A to the Indenture. 
  
 “Class A-5 Notes” means the 4.58% Asset Backed Notes, Class A-5, substantially in the form of Exhibit A to the Indenture. 
  
 “Class B Notes” means the 4.25% Asset Backed Notes, Class B, substantially in the form of Exhibit A
to the Indenture. 
  
 “Class C Notes” means the
4.54% Asset Backed Notes, Class C, substantially in the form of Exhibit A to the Indenture. 
  
 “Class D Notes” means the 4.86% Asset Backed Notes, Class D, substantially in the form of Exhibit A to the Indenture. 

 
 “Class E Notes” means the 0.00% Asset Backed Notes, Class
E, substantially in the form of Exhibit A to the Indenture. 
  
 “Class A Principal Distribution Amount” means, for any Payment Date, the amount required to reduce the Note Balance of the Class A Notes to the product of (a) the Note Balance of the Class A Notes immediately prior to the
Crossover Date divided by the Pool Balance on the last day of the second Collection Period preceding the Crossover Date and (b) the Pool Balance as of the last day of the related Collection Period. 
  
 “Class B Principal Distribution Amount” means, for any
Payment Date, the amount required to reduce the sum of the Note Balances of the Class A Notes (as reduced by principal payments made to the Class A Notes on that Payment Date) and Class B Notes to the product of 

  

					
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 Transfer and Servicing Agreement

 
(a) the sum of the Note Balances of the Class A Notes and the Class B Notes immediately prior to the Crossover Date divided by the Pool Balance on the
last day of the second Collection Period preceding the Crossover Date and (b) the Pool Balance as of the last day of the related Collection Period. 
  
 “Class C Principal Distribution Amount” means, for any Payment Date, the amount required to reduce the sum of the Note Balances of the
Class A Notes (as reduced by principal payments made to the Class A Notes on that Payment Date), the Class B Notes (as reduced by principal payments made to the Class B Notes on that Payment Date) and the Class C Notes to the product of (a) the sum
of the Note Balances of the Class A Notes, the Class B Notes and the Class C Notes immediately prior to the Crossover Date divided by the Pool Balance on the last day of the second Collection Period preceding the Crossover Date and (b)
the Pool Balance as of the last day of the related Collection Period. 
  
 “Class D Principal Distribution Amount” means, for any Payment Date, the amount required to reduce the sum of the Note Balances of the Class A Notes (as reduced by principal payments made to the Class A Notes on that
Payment Date), the Class B Notes (as reduced by principal payments made to the Class B Notes on that Payment Date), the Class C Notes (as reduced by principal payments made to the Class C Notes on that Payment Date) and the Class D Notes to the
product of (a) the sum of the Note Balances of the Class A Notes, the Class B Notes, the Class C Notes and the Class D Notes immediately prior to the Crossover Date divided by the Pool Balance on the last day of the second Collection Period
preceding the Crossover Date and (b) the Pool Balance as of the last day of the related Collection Period. 
  
 “Class E Principal Distribution Amount” means, for any Payment Date, the amount required to reduce the Note Balances of the Notes (as
reduced by principal payments made to the Class A Notes, Class B Notes, Class C Notes and Class D Notes on that Payment Date) to the product of (a) the Note Balances of the Notes immediately prior to the Crossover Date divided by the Pool
Balance on the last day of the second Collection Period preceding the Crossover Date and (b) the Pool Balance as of the last day of the related Collection Period. 
  
 “Class A-1 Stated Maturity Date” means July 7, 2009. 
  
 “Class A-2 Stated Maturity Date” means October 7, 2013.

  
 “Class A-3 Stated Maturity Date” means
October 8, 2018. 
  
 “Class A-4 Stated Maturity
Date” means July 7, 2021. 
  
 “Class A-5 Stated
Maturity Date” means November 7, 2031. 
  
 “Class
B Stated Maturity Date” means November 7, 2031. 
  
 “Class C Stated Maturity Date” means November 7, 2031. 
  
 “Class D Stated Maturity Date” means November 7, 2031. 
  
 “Class E Stated Maturity Date” means November 7, 2031. 
  

					
	 	 	5	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

 “Clearing Agency” means an organization registered as a “clearing agency”
pursuant to Section 17A of the Exchange Act. 
  
 “Clearing
Agency Participant” means a broker, dealer, bank, other financial institution or other Person for whom from time to time a Clearing Agency effects book-entry transfers and pledges of securities deposited with the Clearing Agency.

  
 “Clearing Corporation” is defined in Section
8-102(a)(5) of the UCC. 
  
 “Clearing Corporation
Item” means securities which are in the custody of or maintained on the books of a Clearing Corporation or a nominee subject to the control of a Clearing Corporation and, if they are Certificated Items in registered form, properly endorsed
to or registered in the name of the Clearing Corporation or such nominee. 
  
 “Clearstream” means Clearstream Banking, Luxembourg, a limited liability company organized under the laws of the Grand Duchy of Luxembourg. 
  
 “Clearstream Item” means a “security” as defined
in Section 8-102(a)(15) of the UCC that (i) is a debt or equity security and (ii) is capable of being transferred to the Indenture Trustee’s account at Clearstream pursuant to Section 5.01 of the Transfer and Servicing Agreement.

  
 “Closing Date” means December 16, 2004.

  
 “Coast Guard” means the National Vessel
Documentation Center of the United States Coast Guard. 
  
 “Code” means the Internal Revenue Code of 1986, as amended, and Treasury Regulations promulgated thereunder. 
  
 “Collateral” is defined in the Granting Clause of the Indenture. 
  
 “Collection” or “Collections” means, with respect to any Receivable and to the extent
received by the Servicer after the Cut-Off Date, (a) any monthly payments by or on behalf of the obligor thereunder, (b) any full or partial prepayment of that Receivable, (c) all Liquidation Proceeds and (d) any other amounts received by the
Servicer which, in accordance with its customary servicing practices, would customarily be applied to the payment of accrued interest or to reduce the Principal Balance of that Receivable, including rebates of premiums with respect to the
cancellation or termination of any Insurance Policy, extended warranty or service contract; provided, however, that the term “Collections” in no event will include any amounts in respect of any receivable purchased by the
Servicer or the seller on a prior Payment Date or any limited supplemental servicing fees required to be paid under the Transfer and Servicing Agreement to the Servicer. 
  
 “Collection Account” means the account designated as such, established and maintained pursuant to
Section 5.01(a) of the Transfer and Servicing Agreement. 
  

					
	 	 	6	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

 “Collection Period” means the period commencing on the first day of each calendar month
and ending on the last day of such calendar month (or, in the case of the initial Collection Period, the period commencing on the close of business on the Cut-Off Date and ending on December 31, 2004). As used herein, the “related”
Collection Period with respect to a Payment Date shall be deemed to be the Collection Period which precedes such Payment Date. Any amount stated as of the last day of a Collection Period or as of the first day of a Collection Period shall give
effect to the following calculations as determined as of the close of business on such last day: (a) all applications of Collections and, (b) all Advances and reductions of Outstanding Advances on such day. 
  
 “Commission” is defined in Section 1.02 of the
Indenture. 
  
 “Computer Tape” means the computer
tape, containing information on the Receivables, delivered by E*Trade Consumer Finance to the Issuer on or prior to the Closing Date. 
  
 “Contract” means a retail installment sale contract or installment loan contract originated by E*Trade Consumer Finance, Dealers or
Affiliated Originators relating to new or used recreational vehicles or new or used marine assets (including recreational sport and power boats (including any boat motors and accompanying trailers) and yachts (both power and sail). 
  
 “Controlling Class” means, with respect to any Notes that
are Outstanding, the Class A Notes (voting together as a single class) as long as any Class A Notes are Outstanding, and thereafter the Class B Notes as long as any Class B Notes are Outstanding, and thereafter the Class C Notes as long as any Class
C Notes are Outstanding, and thereafter the Class D Notes as long as any Class D Notes are Outstanding, excluding, in each case, Notes held by the Depositor, the Servicer or their affiliates. 
  
 “Corporate Trust Office” or “Corporate Trust
Administration Department” means (i) the office of the Indenture Trustee at which at any particular time its corporate trust business shall be principally administered, which office at the date of the execution of the Indenture is located
at 4 New York Plaza, 6th floor, New York, New York 10004-2477; or at such other address as the Indenture Trustee may
designate from time to time by notice to the Noteholders and the Depositor, or the principal corporate trust office of any successor Indenture Trustee (of which address such successor Indenture Trustee shall notify the Noteholders and the Depositor)
and (ii) with respect to the Owner Trustee, the office of the Owner Trustee located at Sixth & Marquette, Minneapolis, Minnesota 55479-0070 or at such other address outside of New York as the Owner Trustee may designate by notice to the Residual
Interestholder, the Indenture Trustee, the Noteholders, the Residual Interestholder and the Depositor, or the principal corporate trust office of any successor Owner Trustee (of which address such successor Owner Trustee shall notify the Residual
Interestholder, the Indenture Trustee and the Depositor). 
  
 “Cram Down Loss” means, with respect to any Receivable (other than a Defaulted Receivable) as to which any court in any bankruptcy, insolvency or other similar proceeding issues an order reducing the Principal Balance to be
paid on such Receivable or otherwise modifies any payment terms with respect thereto, an amount equal to the greater of (a) the amount of the principal reduction ordered by such court and (b) the difference between the Principal Balance of such
Receivable at the time of such court order and the net present value 

  

					
	 	 	7	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

 
(using a discount rate which is the higher of the contract rate of such Receivable or the rate of interest specified by such court order) of the remaining
scheduled payments as modified or restructured. A “Cram Down Loss” will be deemed to have occurred on the date of issuance of such court’s order. 
  
 “Crossover Date” means the latest of (a) the Payment Date in July 2006, or (b) if a Trigger Event is in
effect on such date, or on any subsequent Payment Date, the first Payment Date after such date that a Trigger Event is not in effect. 
  
 “Cumulative Net Realized Loss Ratio” means as of any date of determination, the ratio of (a) the aggregate Principal Balance of all
Receivables that became Defaulted Receivables plus all the Cram Down Losses that occurred during the period from Cut-Off Date through the end of the related Collection Period reduced by the amount of all Liquidation Proceeds with respect to
Defaulted Receivables received during such period which are applied to principal of the Defaulted Receivables to (b) the initial aggregate Principal Balance of all Receivables. 
  
 “Cut-Off Date” means November 30, 2004. 
  
 “Dealer” means the dealer which sold a Financed Asset to an Obligor and, if applicable, which originated
and assigned the related Receivable to E*Trade Consumer Finance or an Affiliated Originator. 
  
 “Dealer Agreement” means an agreement between a Dealer and E*Trade Consumer Finance or an Affiliated Originator, pursuant to which E*Trade Consumer Finance or an Affiliated Originator purchased one or
more Receivables. 
  
 “Default” means any
occurrence that is, or with notice or the lapse of time or both would become, an Event of Default. 
  
 “Defaulted Receivable” means, with respect to any Collection Period, a Receivable as to which, without duplication, (a) more than 5.00%
of any scheduled payment on such Receivable is 120 or more days past due or (b) the Servicer has, in accordance with its customary servicing practices, determined that such Receivable has or should be written off as uncollectible. The Principal
Balance of any Receivable that becomes a “Defaulted Receivable” will be deemed to be zero as of the date it becomes a “Defaulted Receivable.” 
  
 “Definitive Notes” is defined in Section 2.10 of the Indenture. 
  
 “Depositor” is defined in the Introductory Statement
of the Transfer and Servicing Agreement. 
  
 “Depositor
Conveyed Property” is defined in Section 2.01 of the Transfer and Servicing Agreement. 
  
 “Depositor Sale Agreement” means the Depositor Sale Agreement dated as of December 16, 2004, between Transferor and the Depositor.

  

					
	 	 	8	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

 “Determination Date” means, with respect to any Payment Date and the Collection Period
immediately preceding such Payment Date, the Business Day immediately preceding such Payment Date. 
  
 “Eligible Deposit Account” means either (a) a segregated account with an Eligible Institution or (b) a segregated non-interest bearing
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 any of the securities of such depository institution shall have a credit rating from each Rating Agency in one of its generic rating categories that
signifies investment grade. 
  
 “Eligible
Institution” means (a) the corporate trust department of the Indenture Trustee or the Owner Trustee, 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) which has either (A) a long-term unsecured debt rating of AAA by Standard & Poor’s and Aaa by Moody’s or (B) a short-term unsecured debt rating or a certificate of deposit
rating of A-1+ by Standard & Poor’s and Prime-1 by Moody’s, or any other long-term, short-term unsecured or certificate of deposit rating acceptable to the Rating Agencies and (ii) whose deposits are insured by the FDIC. If so
qualified, the Indenture Trustee or the Owner Trustee may be considered an Eligible Institution for the purposes of clause (b) of this definition. 
  
 “Eligible Investments” means any one or more of the following types of investments and may include investments for which the Indenture
Trustee or its Affiliates serves as investment manager or advisor: 
  
 (a) direct obligations of, and obligations fully guaranteed as to the full and timely payment by, the United States of America; 
  
 (b) demand deposits, time deposits or certificates of deposit of any depository institution (including any Affiliate of the Transferor, the Servicer, the
Indenture Trustee or the Owner Trustee) or trust company incorporated under the laws of the United States of America or any State (or any domestic branch of a foreign bank) and subject to supervision and examination by Federal or State banking or
depository institution authorities (including depository receipts issued by any such institution or trust company as custodian with respect to any obligation referred to in clause (a) above or a portion of such obligation for the benefit of
the holders of such depository receipts); provided, however that at the time of the investment or contractual commitment to invest therein (which shall be deemed to be made again each time funds are reinvested following each payment date),
the commercial paper or other short-term senior unsecured debt obligations (other than such obligations the rating of which is based on the credit of a Person other than such depository institution or trust company) of such depository institution or
trust company shall have a credit rating from Standard & Poor’s of A-1+ and from Moody’s of Prime-1; 
  
 (c) commercial paper (including commercial paper of any Affiliate of Transferor, the Servicer, the Indenture Trustee or the Owner Trustee) having, at the
time of the investment or 

  

					
	 	 	9	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

 
contractual commitment to invest therein, a rating from Standard & Poor’s of A-1+ and from Moody’s of Prime-1; 
  
 (d) investments in money market funds (including funds for which the
Transferor, the Servicer, the Indenture Trustee or the Owner Trustee or any of their respective Affiliates is investment manager or advisor) having a rating from Standard & Poor’s of AAA-m or AAAm-G and from Moody’s of Aaa; 

 
 (e) banker’s acceptances issued by any depository institution or
trust company referred to in (b) above; 
  
 (f) 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 a depository institution or trust company (acting as principal) referred to in (b) above; and 
  
 (g) any other investment with respect to which each Rating Agency has provided written notice that such investment would not cause such Rating Agency to
downgrade or withdraw its then current rating of any Class of Notes. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 
  
 “E*Trade Consumer Finance” is defined in the Introductory Statement of the Transfer and Servicing Agreement. 
  
 “ETCFC Flow Purchase Agreement” means, that certain
Portfolio Purchase Agreement dated June 9, 1997 between Thor and E*Trade Consumer Finance. 
  
 “Euroclear” means Euroclear Bank S.A./N.V., as operator of the Euroclear system. 
  
 “Euroclear Item” means a “security” as defined in Section 8-102(a)(15) of the UCC that (i) is a debt or equity security and
(ii) is capable of being transferred to the Indenture Trustee’s account at Euroclear pursuant to Section 5.01 of the Transfer and Servicing Agreement. 
  
 “Event of Default” is defined in Section 5.01 of the Indenture. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as
amended. 
  
 “Executive Officer” means, with
respect to any corporation, the Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, President, Executive Vice President, any Vice President, the Secretary or the Treasurer of such corporation; and with respect to any
partnership, any general partner thereof. 
  
 “Expenses” is defined in Section 8.02 of the Trust Agreement. 
  
 “FDIC” means the Federal Deposit Insurance Corporation or any successor organization. 
  

					
	 	 	10	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

 “Federally Documented Boat” means a Financed Boat that is documented under Chapter 121
of Title 46 of the United States Code. 
  
 “Fidelity
Bond” means a fidelity bond to be maintained by the Servicer pursuant to Section 4.15 of the Transfer and Servicing Agreement. 
  
 “Final Certification” is defined in Section 3.02 of the Transfer and Servicing Agreement. 
  
 “Final Scheduled Payment Date” means, for any Class of
Notes, the Stated Maturity Date of such Class of Notes. 
  
 “Financed Asset” means, as applicable, a Financed Boat or a Financed Vehicle. 
  
 “Financed Boat” means a new or used sport or power boat (including any boat motors and accompanying trailers) or yacht (both power and
sail), together with all accessions thereto, securing an Obligor’s indebtedness under the respective Receivable. 
  
 “Financed Vehicle” means a new or used recreational vehicle, together with all accessions thereto, securing an Obligor’s
indebtedness under the respective Receivable. 
  
 “Fifth
Allocation of Principal” means, for any Payment Date an amount not less than zero equal to the excess, if any, of (a) the Note Balance of the Class A Notes, Class B Notes, Class C Notes, Class D Notes and Class E Notes minus the
First Allocation of Principal, Second Allocation of Principal, Third Allocation of Principal and Fourth Allocation of Principal for the specified Payment Date over (b) the Pool Balance as of the last day of the related Collection Period;
provided, however, that the Fifth Allocation of Principal on and after the Final Scheduled Payment Date for the Class E Notes shall not be less than the amount that is necessary to reduce the Note Balance of the Class E Notes to zero
(after the application of the First Allocation of Principal, the Second Allocation of Principal, Third Allocation of Principal and the Fourth Allocation of Principal). 
  
 “First Allocation of Principal” means, for any Payment Date, an amount not less than zero equal to the
excess, if any, of (a) the Note Balance of the Class A Notes as of the preceding Payment Date over (b) the Pool Balance as of the last day of the related Collection Period; provided, however, that the First Allocation of
Principal on and after the Final Scheduled Payment Date for any Class of Class A Notes shall not be less than the amount that is necessary to reduce the Note Balance of that class of Class A Notes to zero. 
  
 “Fourth Allocation of Principal” means, for any Payment
Date, an amount not less than zero equal to the excess, if any, of (a) the Note Balance of the Class A Notes, Class B Notes, Class C Notes and Class D Notes minus the First Allocation of Principal, Second Allocation of Principal and Third
Allocation of Principal for the specified Payment Date over (b) the Pool Balance as of the last day of the related Collection Period; provided, however, that the Fourth Allocation of Principal on and after the Final Scheduled Payment
Date for the Class D Notes shall not be less than the amount that is necessary to reduce the Note Balance of the Class D Notes to zero (after the application of the First Allocation of Principal, the Second Allocation of Principal and Third
Allocation of Principal). 
  

					
	 	 	11	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

 “Government Item” means a security (other than a security issued by the Government
National Mortgage Association) issued or guaranteed by the United States of America or an agency or instrumentality thereof representing a full faith and credit obligation of the United States of America and, with respect to each of the foregoing,
that is maintained in book-entry form on the records of a Federal Reserve Bank. 
  
 “Grant” means mortgage, pledge, bargain, sell, warrant, alienate, remise, release, convey, assign, transfer, create, and grant a lien upon and a security interest in and a right of set-off against
pursuant to the Indenture. A Grant of the Collateral or of any other agreement or instrument shall include all rights, powers and options (but none of the obligations) of the granting party thereunder, including the immediate and continuing
right to claim for, collect, receive and give receipt for principal and interest payments in respect of the Collateral and all other moneys payable thereunder, to give and receive notices and other communications, to make waivers or other
agreements, to exercise all rights and options, to bring Proceedings in the name of the granting party or otherwise, and generally to do and receive anything that the granting party is or may be entitled to do or receive thereunder or with respect
thereto. 
  
 “Holder” means the Person in whose
name a Note is registered on the Note Register. 
  
 “Indemnified Parties” is defined in Section 8.02 of the Trust Agreement. 
  
 “Indenture” means the Indenture dated as of December 16, 2004, between the Issuer and the Indenture Trustee. 
  
 “Indenture Trustee” means JPMorgan Chase Bank, N.A., a
national banking association, as Indenture Trustee under the Indenture, or any successor Indenture Trustee under the Indenture. 
  
 “Independent” means, when used with respect to any specified Person, that the Person (a) is in fact independent of the Issuer, any other
obligor on the Notes, the Depositor, the Transferor and any Affiliate of any of the foregoing Persons, (b) does not have any direct financial interest or any material indirect financial interest in the Issuer, any such other obligor, the Depositor,
the Transferor or any Affiliate of any of the foregoing Persons and (c) is not connected with the Issuer, any such other obligor, the Depositor, the Transferor or any Affiliate of any of the foregoing Persons as an officer, employee, promoter,
underwriter, trustee, partner, director or person performing similar functions. 
  
 “Independent Certificate” means a certificate or opinion to be delivered to the Indenture Trustee under the circumstances described in, and otherwise complying with, the applicable requirements of
Section 11.01 of the Indenture, made by an Independent appraiser or other expert appointed by an Issuer Order, and such opinion or certificate shall state that the signer has read the definition of “Independent” in the Indenture and
that the signer is Independent within the meaning thereof. 
  
 “Independent Director” is defined in the articles of incorporation of the Depositor. 
  

					
	 	 	12	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

 “Initial Note Balance” means, with respect to each Class of Notes, the initial Note
Balance for such Class of Note as set forth below: 
  

			
	Class A-1 Notes: $61,200,000	  	Class B Notes: $10,042,000
	Class A-2 Notes: $66,200,000	  	Class C Notes: $9,270,000
	Class A-3 Notes: $75,900,000	  	Class D Notes: $10,815,000
	Class A-4 Notes: $32,500,000	  	Class E Notes: $6,952,000
	Class A-5 Notes: $34,572,000	  	 

  
 “Initial Pool
Balance” means $308,996,120.23. 
  
 “Insolvency
Event” means, with respect to a specified Person, (a) the filing of a decree or order for relief by a court having jurisdiction in the premises in respect of such Person or any substantial part of its property in an involuntary case under
any applicable federal or state bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official for such Person or for any substantial part
of its property, or ordering the winding-up or liquidation of such Person’s affairs, and such decree or order shall remain unstayed and in effect for a period of 60 consecutive days; or (b) 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. 
  
 “Instrument” is defined in Section 9-105(1)(i) of the UCC.

  
 “Insurance Policy” means, with respect to a
Receivable, any insurance policy benefiting the holder of the Receivable providing loss or physical damage, credit life, credit disability, theft, mechanical breakdown or similar coverage with respect to the related Financed Asset or the related
Obligor. 
  
 “Interest Accrual Period” means the
period from and including the prior Payment Date (or in the case of the first Payment Date, from and including the Closing Date) to but excluding the following Payment Date. 
  
 “Interest Rate” means the interest rate for any one or more of the Classes of Notes, or collectively for
all Classes of Notes, in each case, as the context requires. 
  
 “Investment Earnings” means the realized investment earnings (net of losses and investment expenses) on amounts on deposit in the Trust Accounts. 
  
 “Issuer” means E*Trade RV and Marine Trust 2004-1, a New York common law trust and, for purposes of any
provision contained herein and required by the TIA, each other obligor on the Notes. 
  
 “Issuer Order” or “Issuer Request” means a written order or request signed in the name of the Issuer by any one of its Authorized Officers and delivered to the Indenture Trustee.

  

					
	 	 	13	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

 “Lien” means a security interest, lien, charge, pledge, equity or encumbrance of any
kind, other than tax liens, mechanics’ liens and any liens that attach to a Receivable by operation of law as a result of any act or omission by the related Obligor. 
  
 “Lien Certificate” means, with respect to a Financed Asset, an original certificate of title, certificate
of lien or other notification issued by the Registrar of Titles of the applicable State to a secured party which indicates that the lien of the secured party on the Financed Asset is recorded on the original certificate of title or, if such Financed
Asset is of the type that is perfected by the filing of a financing statement, an acknowledgment copy of the filing thereof with the appropriate State. In any jurisdiction in which the original certificate of title is required to be given to the
Obligor, the term “Lien Certificate” means only a certificate or notification issued to a secured party by such Registrar of Titles. 
  
 “Liquidation Proceeds” means, with respect to any Receivable, (a) insurance proceeds received by the Servicer with respect to any
Insurance Policies relating to the related Financed Asset or Obligor, (b) amounts received by the Servicer in connection with such Receivable pursuant to the exercise of rights under that Receivable and (c) the monies collected by the Servicer (from
whatever source, including proceeds of a sale of the related Financed Asset, a deficiency balance recovered after the charge-off of the related Receivable or as a result of any recourse against the related Dealer) on such Receivable net of any
reasonable out-of-pocket expenses (including any auction, painting, repair or refurbishment expenses) incurred by the Servicer in connection with such liquidation or other actions described above and any payments required by law to be remitted to
the related Obligor. 
  
 “Majority Noteholders”
means the Holders of Notes representing not less than a majority of the Note Balance of the Notes then Outstanding excluding in each case, Notes held by the Depositor, the Servicer or their Affiliates. 
  
 “Moody’s” means Moody’s Investors Service, Inc.,
or its successor in interest. 
  
 “Note” means
any Class A Note, Class B Note, Class C Note, Class D Note or Class E Note. 
  
 “Note Balance” means, with respect to any Note that is Outstanding at any time, the Initial Note Balance of that Note, as reduced by any payments of principal made on such Note prior to such time and,
when used with respect to the Notes generally, the aggregate Note Balance for all the Notes that are Outstanding at such time. 
  
 “Note Depository Agreement” means the agreement dated the Closing Date among the Trust, the Indenture Trustee, and The Depository Trust
Company, as the initial Clearing Agency, relating to the Notes. 
  
 “Note Distribution Account” means the account designated as such, established and maintained pursuant to Section 5.01 of the Transfer and Servicing Agreement. 
  
 “Note Owner” means, with respect to a Book-Entry Note, the
Person who is the beneficial owner of such Book-Entry Note, as reflected on the books of the Clearing Agency or on the books of a Person maintaining an account with such Clearing Agency (directly as a 

  

					
	 	 	14	 	 E*TRADE 2004-1
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Clearing Agency Participant or as an indirect participant, in each case in accordance with the rules of such Clearing Agency). 
  
 “Note Pool Factor” means, with respect to each Class of
Notes as of the close of business on the last day of a Collection Period, a seven-digit decimal figure equal to the outstanding principal balance of such Class of Notes (after giving effect to any reductions thereof to be made on the immediately
following Payment Date) divided by the original outstanding principal balance of such Class of Notes. The Note Pool Factor shall be 1.0000000 as of the Closing Date; thereafter, the Note Pool Factor shall decline to reflect reductions in the
outstanding principal balance of such Class of Notes. 
  
 “Note Register” and “Note Registrar” have the respective meanings specified in Section 2.04 of the Indenture. 
  

“Noteholder” means the Person in whose name a Note is registered on the Note Register. 
  
 “Notes” means, collectively, the Class A Notes, the Class B
Notes, the Class C Notes, the Class D Notes and the Class E Notes. 
  
 “Obligor” on a Receivable means the purchaser or co-purchasers of the related Financed Asset and any other Person who owes payments under such Receivable. 
  
 “Officer’s Certificate” means a certificate signed by any Authorized Officer of the Issuer, under the
circumstances described in, and otherwise complying with, the applicable requirements of Section 11.01 of the Indenture, and delivered to the Indenture Trustee and, with respect to any other Basic Document, means a certificate signed by (a)
any vice president and (b) the president, treasurer, assistant treasurer, secretary or assistant secretary of the Servicer (or any other Person specified in any such Basic Document as delivering an Officer’s Certificate). Unless otherwise
specified, any reference in the Indenture to an Officer’s Certificate shall be to an Officer’s Certificate signed by any Authorized Officer of the Issuer. 
  
 “Opinion of Counsel” means one or more written opinions of counsel who may, except as otherwise expressly
provided in the Indenture, be an employee of or counsel to the Issuer, the Servicer, the Transferor or the Depositor and who shall be satisfactory to the Indenture Trustee, and which opinion or opinions shall be addressed to the Indenture Trustee as
Indenture Trustee, shall comply with any applicable requirements of Section 11.01 of the Indenture and shall be in form satisfactory to the Indenture Trustee. 
  
 “Original Trust Agreement” is defined in the preamble to the Trust Agreement. 
  
 “Other Assets” means any assets (or interests therein)
(other than the Depositor Conveyed Properly) conveyed or purported to be conveyed by the Depositor to another Person or Persons other than the Issuer, whether by way of a sale, capital contribution or by virtue of the granting of a lien. 

 

					
	 	 	15	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

 “Outstanding” means, as of any date of determination, all Notes theretofore
authenticated and delivered under the Indenture except: 
  
 (a) Notes theretofore cancelled by the Note Registrar or delivered to the Note Registrar for cancellation; 
  
 (b) Notes or portions thereof the payment for which money in the necessary amount has been theretofore deposited with the Indenture
Trustee or any Paying Agent in trust for the Holders of such Notes (provided, however, that if such Notes are to be redeemed, notice of such redemption has been duly given pursuant to the Indenture or provision for such notice has been
made, satisfactory to the Indenture Trustee); and 
  
 (c) Notes in exchange for or in lieu of which other Notes have been authenticated and delivered pursuant to the Indenture unless proof satisfactory to the Indenture Trustee is presented that any such Notes are held by a bona fide purchaser;

  
 provided, that in determining whether the Holders of
the requisite Note Balance of the Notes have given any request, demand, authorization, direction, notice, consent or waiver under any Basic Document, (i) Notes owned by the Issuer, any other obligor upon the Notes, the Depositor, E*Trade Consumer
Finance, the Transferor or any Affiliate of any of the foregoing Persons shall be disregarded and deemed not to be Outstanding, except that, in determining whether the Indenture Trustee shall be fully protected in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Notes that a Responsible Officer of the Indenture Trustee actually knows to be so owned shall be so disregarded (Notes so owned that have been pledged in good faith may be regarded as
Outstanding if the pledgee establishes to the satisfaction of the Indenture Trustee the pledgee’s right so to act with respect to such Notes and that the pledgee is not the Issuer, any other obligor upon the Notes, the Depositor, the Transferor
or any Affiliate of any of the foregoing Persons), and (ii) clause (b) of this definition of Outstanding shall be disregarded; provided further, that when monies referred to in clause (b) of this definition are payable to Noteholders,
then the related Notes shall be deemed to be Outstanding until the Note Balance of such Notes shall have been reduced to zero. 
  
 “Outstanding Advances” on the Receivables means the sum, as of the close of business on the last day of a Collection Period, of all
Advances as reduced as provided in Section 5.04 of the Transfer and Servicing Agreement. 
  
 “Overcollateralization Target Amount” means, for any Payment Date, the product of the Overcollateralization Target Percentage and the
Pool Balance as of the last day of the related Collection Period for that Payment Date. 
  
 “Overcollateralization Target Percentage” means, initially 0%, and for any Payment Date on or after the Crossover Date, 100% minus the percentage calculated on the Crossover Date by dividing
the aggregate Note Balance immediately prior to the Crossover Date by the Pool Balance on the last day of the second Collection Period preceding the Crossover Date. 
  
 “Owner Trust Estate” means all right, title and interest of the Trust in and to the property and rights
assigned to the Trust pursuant to Article II of the Transfer and Servicing Agreement, all funds on deposit from time to time in the Trust Accounts and all other property of the Trust 

  

					
	 	 	16	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

 
from time to time, including any rights of the Owner Trustee and the Trust pursuant to the Transfer and Servicing Agreement. 
  
 “Owner Trustee” means Wells Fargo Bank, National
Association, a national banking association, not in its individual capacity but solely as owner trustee under the Trust Agreement, and any successor Owner Trustee thereunder. 
  
 “Paying Agent” means the Indenture Trustee or any other Person that meets the eligibility standards for the
Indenture Trustee specified in Section 6.11 of the Indenture and is authorized by the Issuer to make payments to and distributions from the Collection Account and the Principal Distribution Account, including payments of principal of or
interest on the Notes on behalf of the Issuer. 
  
 “Payment Date” means, with respect to each Collection Period, the 7th day of the following month or, if such day is not a Business Day, the next Business Day, commencing on January 7, 2005. 
  
 “Payment Default” means an Event of Default that occurs as a
result of (a) a failure of the Trust to pay interest when due on any of the Notes of the Controlling Class on any Payment Date, or (b) a failure to pay the Note Balance of all of the Notes on a date selected for redemption of the Notes, or (c) a
failure of the Trust to pay the Note Balance of the Notes of a particular Class on the Stated Maturity Date for such class of Notes. 
  
 “Person” means any individual, corporation, limited liability company, estate, partnership, joint venture, association, joint stock
company, trust (including any beneficiary thereof), unincorporated organization or government or any agency or political subdivision thereof. 
  
 “Pool Balance” means, as of the close of business on the last day of a Collection Period, the aggregate Principal Balance of the
Receivables as of such day (excluding Purchased Receivables and Defaulted Receivables). 
  
 “Predecessor Note” means, with respect to any particular Note, every previous Note evidencing all or a portion of the same debt as that evidenced by such particular Note; and, for the purpose of this
definition, any Note authenticated and delivered under Section 2.05 of the Indenture in lieu of a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same debt as the mutilated, lost, destroyed or stolen Note.

  
 “Preferred Mortgage” means a mortgage
covering a Financed Boat which is a “preferred mortgage” within the meaning of Section 31322 of Title 46 of the United States Code. 
  
 “Principal Balance” means, as of any time, for any Receivable, the Principal Balance of that Receivable under the terms of the Receivable
determined in accordance with the Servicer’s customary servicing practices. The Principal Balance of any Receivable that becomes a Defaulted Receivable will be deemed to be zero as of the date it became a Defaulted Receivable. 
  

					
	 	 	17	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

 “Principal Distribution Account” means the subaccount of the Note Distribution Account
designated as such, established and maintained as such pursuant to Section 5.01 of the Transfer and Servicing Agreement, from which distributions of principal to the Noteholders will be made. 
  
 “Proceeding” means any suit in equity, action at law or
other judicial or administrative proceeding. 
  
 “Program” is defined in Section 4.11 of the Trust Sales and Servicing Agreement. 
  
 “Purchase Amount” means the amount, as of the close of business on the last day of a Collection Period, required to prepay in full a
Receivable under the terms thereof including interest to the end of such Collection Period. 
  
 “Purchased Receivable” means a Receivable purchased for the Purchase Amount as of the close of business on the last day of a Collection Period by the Servicer from the Issuer pursuant to Section
4.07 of the Transfer and Servicing Agreement or purchased by the Depositor from the Issuer pursuant to Section 3.01 of the Transfer and Servicing Agreement. 
  
 “Rating Agency” means Standard & Poor’s and Moody’s or, if no such organization or successor
is any longer in existence, 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 (a) each Rating Agency (other than Moody’s) shall have been given ten (10) Business Days (or such shorter period as is acceptable to each Rating Agency) prior notice thereof and that each of the Rating Agencies shall have
notified any of the Depositor, the Servicer, the Indenture Trustee, the Owner Trustee or the Issuer in writing that such action shall not result in a qualification, reduction or withdrawal of the then current rating of any Class of the Notes, and
(b) Moody’s shall have been given ten (10) Business Days (or such shorter period as is acceptable to Moody’s) prior notice thereof and copies of all documentation relating to the event requiring such Rating Agency Condition. 
  
 “Receivable” means any Contract listed on the Schedule of
Receivables. 
  
 “Receivable Files” means the
documents specified in Section 3.02 of the Transfer and Servicing Agreement. 
  
 “Record Date” means, with respect to any Payment Date (including the Redemption Date), the close of business on the day immediately preceding such Payment Date or, if Definitive Notes have been issued
pursuant to Section 2.12 of the Indenture, the last day of the month immediately preceding such Payment Date. 
  
 “Redemption Date” is defined in Section 10.01 of the Indenture. 
  
 “Redemption Price” means, in the case of a redemption of the Notes pursuant to Section 10.01 of the
Indenture, an amount equal to the unpaid principal amount of the Notes redeemed plus accrued and unpaid interest thereon at the respective Interest Rates for each Class of Notes 

  

					
	 	 	18	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

 
being so redeemed through the end of the Interest Accrual Period relating to the applicable Payment Date. 
  
 “Registered Holder” means the Person in whose name a Note is
registered on the Note Register on the applicable Record Date. 
  
 “Registrar of Titles” means, with respect to any state, the governmental agency or body responsible for the registration of, and the issuance of certificates of title relating to, motor vehicles and boats and liens thereon.

  
 “Reserve Account” means the account
designated as such, established and maintained pursuant to Section 5.01(a) of the Transfer and Servicing Agreement. 
  
 “Reserve Account Initial Deposit” means an amount equal to $4,634,941.80. 
  
 “Residual Interest” means the beneficial undivided ownership interest in the Trust. 
  
 “Residual Interestholder” means the Depositor in its
capacity as the owner of the Residual Interest. 
  
 “Residual Interestholder Distribution Account” is defined in Section 5.01 of the Trust Agreement. 
  
 “Responsible Officer” means, with respect to the Indenture Trustee, any Trust Officer thereof. 
  
 “Schedule of Receivables” means the list of the receivables
set forth in Schedule A to the Transfer and Servicing Agreement (which Schedule may be in the form of microfiche or computer tape or other computer-readable form). 
  
 “Second Allocation of Principal” means, for any Payment Date an amount not less than zero equal to the
excess, if any, of (a) the Note Balance of the Class A Notes and Class B Notes minus the First Allocation of Principal for the specified Payment Date over (b) the Pool Balance as of the last day of the related Collection Period;
provided, however, that the Second Allocation of Principal on and after the Final Scheduled Payment Date for the Class B Notes shall not be less than the amount that is necessary to reduce the Note Balance of the Class B Notes to zero
(after the application of the First Allocation of Principal). 
  
 “Securities” means the Notes. 
  
 “Securities Act” means the Securities Act of 1933, as amended. 
  
 “Servicer” means E*Trade Consumer Finance, as the servicer of the Receivables, and each successor to E*Trade Consumer Finance (in the same capacity). 
  
 “Servicer Default” is defined in Section 8.01 of the
Transfer and Servicing Agreement. 
  

					
	 	 	19	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

 “Servicer’s Certificate” means a certificate of the Servicer delivered pursuant to
Section 4.09 of the Transfer and Servicing Agreement, substantially in the form of Exhibit B thereto. 
  
 “Servicing Fee” means the fee payable to the Servicer for services rendered during each Collection Period, determined pursuant to
Section 4.08 of the Transfer and Servicing Agreement. 
  
 “Servicing Fee Rate” means 50 basis points (0.50%). 
  
 “Ship Mortgage Statutes” means the federal ship mortgage statutes of the United States, as amended from time to time. 
  
 “Simple Interest Method” means the method of allocating a payment with respect to a Receivable to principal
and interest, pursuant to which the portion of such payment that is allocated to interest is equal to the product of the stated APR multiplied by the unpaid principal balance of the Receivable multiplied by the period of time elapsed (as a fraction
of a calendar year) since the preceding payment of interest was made and the remainder of such payment is allocable to reduce the principal. 
  
 “Specified Accountants” means KPMG LLP. 
  
 “Specified Agreement” has the meaning set forth in Section 2.13(a) of the Trust Agreement. 
  
 “Specified Reserve Account Balance” means, with respect to
any Payment Date, the lesser of 1.50% of the Initial Pool Balance and the Note Balance of all the Notes on such date. 
  
 “STAMP” is defined in Section 2.4 of the Indenture. 
  
 “Standard & Poor’s” means Standard & Poor’s Ratings Services, a division of The
McGraw-Hill Companies, Inc., or its successor. 
  
 “State” means any one of the 50 States of the United States of America or the District of Columbia. 
  
 “Stated Maturity Date” means, with respect to (i) the Class A-1 Notes, the Class A-1 Stated Maturity Date; (ii) the Class A-2 Notes, the
Class A-2 Stated Maturity Date; (iii) the Class A-3 Notes, the Class A-3 Stated Maturity Date; (iv) the Class A-4 Notes, the Class A-4 Stated Maturity Date; (v) the Class A-5 Notes, the Class A-5 Stated Maturity Date; (vi) the Class B Notes, the
Class B Stated Maturity Date; (viii) the Class C Notes, the Class C Stated Maturity Date; (ix) the Class D Notes, the Class D Stated Maturity Date; or (x) the Class E Notes, the Class E Stated Maturity Date. 
  
 “Successor Servicer” is defined in Section 3.07(e) of
the Indenture. 
  
 “Third Allocation of
Principal” means, for any Payment Date an amount not less than zero equal to the excess, if any, of (a) the Note Balance of the Class A Notes, Class B Notes and Class C Notes minus the First Allocation of Principal and Second
Allocation of Principal for the Specified Payment Date over (b) the Pool Balance as of the last day of the related Collection 

  

					
	 	 	20	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

 
Period; provided, however, that the Third Allocation of Principal on and after the Final Scheduled Payment Date for the Class C Notes shall not
be less than the amount that is necessary to reduce the Note Balance of the Class C Notes to zero (after the application of the First Allocation of Principal and Second Allocation of Principal). 
  
 “Thor” means, Thor Credit Corporation, a Delaware
corporation and its successors. 
  
 “Title
Document” means (a) with respect to any Financed Boat subject to the Ship Mortgage Statutes, the documents (e.g., an abstract of title or a certificate of ownership issued by the Coast Guard) evidencing that a Preferred Mortgage must be
duly recorded with the Coast Guard; and (b) with respect to any Financed Boat not subject to the Ship Mortgage Statutes but subject to registration under a State title statute, an original certificate of title, certificate of lien or other
notification issued by the Registrar of Titles of the applicable State to a secured party which indicates that the lien of the secured party on the Financed Boat is recorded on the original certificate of title, provided that in any jurisdiction in
which the original certificate of title is required to be given to the Obligor, the term “Title Document” means only a certificate or notification issued to a secured party by such Registrar of Titles. 
  
 “Transfer and Servicing Agreement” means the Transfer and
Servicing Agreement dated as of December 16, 2004, among the Issuer, the Depositor, and this Servicer. 
  
 “Transfer Period” is defined in the Back-Up Servicing Agreement. 
  
 “Transferor” means E*Trade Bank, a federal savings bank, as “Transferor” under the
Depositor Sale Agreement. 
  
 “Transferor Sold
Property” is defined in Section 2.01 of the Depositor Sale Agreement. 
  
 “Treasury Regulations” means regulations, including proposed or temporary Regulations, promulgated under the Code. References herein to specific provisions of proposed or temporary regulations shall
include analogous provisions of final Treasury Regulations or other successor Treasury Regulations. 
  
 “Trigger Event” means, the existence of the following for the period from the Payment Date and for all following Payment Dates in the
Trigger Testing Period (as defined in this definition below) in which the Cumulative Net Realized Loss Ratio as of the last day of any Collection Period during any Trigger Testing Period exceeds the following percentages of the Initial Pool
Balance for the related Payment Date in such Trigger Testing Period (whether or not that breach is cured on a later Payment Date in that same Trigger Testing Periods): 
  

	 	(i)	July 2006 through September 2006, 1.25%; 

  

	 	(ii)	October 2006 through December 2006, 1.45%; 

  

	 	(iii)	January 2007 through March 2007, 1.65%; 

  

	 	(iv)	April 2007 through June 2007, 1.85%; 

  

					
	 	 	21	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

	 	(v)	July 2007 through September 2007, 2.00%; 

  

	 	(vi)	October 2007 through December 2007, 2.15%; 

  

	 	(vii)	January 2008 through March 2008, 2.30%; 

  

	 	(viii)	April 2008 through June 2008, 2.40%; and 

  

	 	(ix)	July 2008 and afterwards, 2.50%. 

  
 For the purpose of this definition, a “Trigger Testing Period” means any of the nine calendar periods set forth in clauses (i)
through (ix) above. 
  
 “Trust” means the
Issuer. 
  
 “Trust Account Property” means the
Trust Accounts, all amounts and investments held from time to time in any Trust Account (whether in the form of deposit accounts, Physical Property, book-entry securities, uncertificated securities or otherwise), and all proceeds of the foregoing.

  
 “Trust Accounts” is defined in Section
5.01 in the Transfer and Servicing Agreement. 
  
 “Trust Agreement” means the Amended and Restated Trust Agreement dated as of December 16, 2004, between the Depositor and the Owner Trustee. 
  
 “Trust Estate” means all money, instruments, rights and other property that are subject or intended to be
subject to the lien and security interest of the Indenture for the benefit of the Noteholders (including all property and interests Granted to the Indenture Trustee), including all proceeds thereof. 
  
 “Trust Indenture Act” or “TIA” means the
Trust Indenture Act of 1939 as in force on the Closing Date, unless otherwise specifically provided. 
  
 “Trust Officer” means (a) in the case of the Indenture Trustee, any officer within the Corporate Trust Office of the Indenture Trustee,
including any Vice President, Assistant Vice President, Senior Trust Officer, 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) in the case of the Owner Trustee,
any officer in the Corporate Trust Administration Department of the Owner Trustee with direct responsibility for the administration of the Trust Agreement and the other Basic Documents on behalf of the Owner Trustee. 
  
 “UCC” means, unless the context otherwise requires, the
Uniform Commercial Code, as in effect in the relevant jurisdiction, as amended from time to time. 
  
 “Uncertificated Item” means an “uncertificated security” as defined in Section 8-102(a)(18) of the UCC. 
  

					
	 	 	22	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

 “Underwriting Agreement” means the agreement or agreements with one or more
underwriters, purchasers or representatives thereof with respect to the underwriting or sale of the Notes and the offering thereof. 
  

					
	 	 	23	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

  
 SCHEDULE I 

 
 In addition to the representations, warranties and covenants contained in
the Agreement, the Depositor hereby represents, warrants, and covenants to the Issuer as follows on the Closing Date: 
  
 General 
  

	1.	This Agreement creates a valid and continuing security interest (as defined in the applicable UCC) in the Receivables and the other Depositor Conveyed Property in favor of the
Issuer, which security interest is prior to all other Liens, and is enforceable as such as against creditors of and purchasers from the Issuer. 

  

	2.	The Receivables constitute “chattel paper” (including “electronic chattel paper” or “tangible chattel paper”, “accounts,”
“instruments” or “general intangibles”, within the meaning of the UCC. 

  

	3.	Each Receivable is secured by a first priority validly perfected security interest in the related Financed Asset (other than with respect to Federally Documented Boats) in favor of
the Transferor, or with respect to Federally Documented Boats, the Boat Mortgage Trustee, as secured party, or all necessary actions with respect to such Receivable have been taken or will be taken to perfect a first priority security interest in
the related Financed Assets (other than with respect to Federally Documented Boats) in favor of the Transferor, or with respect to Federally Documented Boats, the Boat Mortgage Trustee as secured party. 

  

	4.	Paragraph 3 above will also apply to all Federally Documented Boats with 90 days of the Closing Date. 

  
 Creation 
  

	5.	Immediately prior to the sale, transfer, assignment and conveyance of a Receivable by the Depositor to the Issuer, the Depositor owned and had good and marketable title to such
Receivable free and clear of any lien and immediately after the sale, transfer, assignment and conveyance of such Receivable to the Issuer, the Issuer will have good and marketable title to such Receivable free and clear of any lien.

  
 Perfection 
  

	6.	The Depositor has caused or will have caused, within ten days after the effective date of this Agreement, the filing of all appropriate financing statements in the proper filing
office in the appropriate jurisdictions under applicable law in order to perfect the security interest in the Receivables granted to the Issuer hereunder; and the Servicer has in its possession the original copies of such instruments or tangible
chattel paper that constitute or evidence the Receivables, and all financing statements referred to in this paragraph contain a statement that: “A purchase of or security interest in any collateral described in this financing statement will
violate the rights of the Secured Party”. 

  

					
	 	 	24	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

	7.	With respect to Receivables that constitute instruments or tangible chattel paper, either: 

  
 (i) All original executed copies of each such instrument or tangible chattel paper have been delivered to the Indenture
Trustee (as total assignee of Issuer); or 
  
 (ii) Such
instruments or tangible chattel paper are in the possession of the Servicer and the Indenture Trustee has received a written acknowledgment from the Servicer that the Servicer is holding such instruments or tangible chattel paper solely on behalf
and for the benefit of the Indenture Trustee; or 
  
 (iii) The
Servicer received possession of such instruments or tangible chattel paper after the Indenture Trustee received a written acknowledgment from the Servicer that the Servicer is acting solely as agent of the Indenture Trustee. 
  
 Priority 
  

	8.	The Depositor has not authorized the filing of, or is aware of, any financing statements against the Issuer that include a description of collateral covering the Depositor Conveyed
Property other than any financing statement (i) relating to the conveyance of the Collateral by Transferor to the Seller under the Depositor Sale Agreement, (ii) relating to the conveyance of the Receivables by the Depositor to the Issuer under this
Agreement, (iii) relating to the security interest granted to the Indenture Trustee under the Indenture or (iv) that has been terminated. 

  

	9.	The Depositor is not aware of any material judgment, ERISA or tax lien filings against the Depositor. 

  

	10.	Neither the Depositor nor a custodian holding any Receivable that is electronic chattel paper has communicated an authoritative copy of any loan agreement that constitutes or
evidences such Receivable to any Person other than the Servicer. 

  

	11.	None of the instruments, tangible chattel paper or electronic chattel paper that constitute or evidence the Receivables has any marks or notations indicating that they have been
pledged, assigned or otherwise conveyed to any Person other than the Issuer or the Indenture Trustee. 

  
 Survival of Perfection Representations. Notwithstanding any other provision of this Indenture or any other Basic Document, the perfection representations,
warranties and covenants contained in this Schedule I shall be continuing, and remain in full force and effect until such time as all obligations under this Agreement have been finally and fully paid and performed. 
  
 No Waiver. The Depositor shall provide the Rating Agencies with prompt written notice
of any breach of the perfection representations, warranties and covenants contained in this Schedule I, and shall not, without satisfying the Rating Agency Condition, waive a breach of any of such perfection representations, warranties or
covenants. 
  
 Depositor to Maintain Perfection and Priority. The Depositor
covenants that, in order to evidence the interests of the Indenture Trustee (as total assignee of Issuer) under this Agreement, 

  

					
	 	 	25	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

 
the Depositor shall take such action, or execute and deliver such instruments as may be necessary or advisable (including, without limitation, such actions
as are requested by the Issuer) to maintain and perfect, as a first priority interest, of the Indenture Trustee’s (as total assignee of Issuer) security interest in the Receivables. The Depositor shall, from time to time and within the time
limits established by law, prepare and file, all financing statements, amendments, continuations, initial financing statements in lieu of a continuation statement, terminations, partial terminations, releases or partial releases, or any other
filings necessary or advisable to continue, maintain and perfect the Indenture Trustee’s (as total assignee of Issuer) security interest in the Receivables as a first-priority interest. 
  

					
	 	 	26	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

  
 SCHEDULE A 

 
 Schedule of Receivables 
  
 Delivered to the Owner Trustee and Indenture Trustee at Closing 
  

					
	 	 	Schedule A	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

  
 SCHEDULE B 

 
 Location of Receivable Files 
  
 3353 Michelson Drive 
 Irvine, California 92612 
  
 and at: 
  
 Iron Mountain Carton
Storage 
 700 Burning Tree Road 
 Fullerton, CA 92833 
  
 Iron Mountain Open Shelf

 1760 North St. Thomas Circle 
 Orange, California 92865-4247 
  

					
	 	 	Schedule 1	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

 EXHIBIT A 
  

E*TRADE RV AND MARINE TRUST 2004-1 
 PAYMENT DATE STATEMENT TO NOTEHOLDERS 
  
 Distribution Allocable
to Principal on Notes 

			
	 Class A-1 Notes:
	 	 ($ per $1,000 original principal amount)

	 Class A-2 Notes:
	 	 ($ per $1,000 original principal amount)

	 Class A-3 Notes:
	 	 ($ per $1,000 original principal amount)

	 Class A-4 Notes:
	 	 ($ per $1,000 original principal amount)

	 Class A-5 Notes:
	 	 ($ per $1,000 original principal amount)

	 Class B Notes:
	 	 ($ per $1,000 original principal amount)

	 Class C Notes:
	 	 ($ per $1,000 original principal amount)

	 Class D Notes:
	 	 ($ per $1,000 original principal amount)

	 Class E Notes:
	 	 ($ per $1,000 original principal amount)

  
 Distribution Allocable to Interest on
Notes 

			
	 Class A-1 Notes:
	 	 ($ per $1,000 original principal amount)

	 Class A-2 Notes:
	 	 ($ per $1,000 original principal amount)

	 Class A-3 Notes:
	 	 ($ per $1,000 original principal amount)

	 Class A-4 Notes:
	 	 ($ per $1,000 original principal amount)

	 Class A-5 Notes:
	 	 ($ per $1,000 original principal amount)

	 Class B Notes:
	 	 ($ per $1,000 original principal amount)

	 Class C Notes:
	 	 ($ per $1,000 original principal amount)

	 Class D Notes:
	 	 ($ per $1,000 original principal amount)

	 Class E Notes:
	 	 ($ per $1,000 original principal amount)

  
 Note Balance after Giving Effect to
Principal Distributions on Notes 
 Class A-1 Notes 
 Class A-2 Notes 
 Class A-3 Notes 
 Class A-4 Notes 
 Class A-5 Notes 
 Class B Notes 
 Class C Notes 
 Class D
Notes 
 Class E Notes 
  
 Note Pool Factor after Giving Effect to Principal Distributions on Notes 
 Class A-1 Notes 
 Class A-2 Notes 
 Class A-3 Notes 
 Class A-4 Notes 
 Class A-5 Notes 
 Class B Notes 
  

					
	 	 	 	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

 Class C Notes 
 Class D Notes 
 Class E Notes 
  
 Servicing Fee 
  
 Servicing Fee Per $1,000 Note 
  
 Reserve Account
Balance 
  
 Pool Balance 
  
 Payments Received with Respect to Receivables During Most Recently Ended Collection Period

  
 Payment Shortfall 
  
 Class A-1 Notes 
 Class A-2 Notes 
 Class A-3 Notes 
 Class A-4 Notes 
 Class A-5 Notes 
 Class B Notes 
 Class C Notes 
 Class D Notes 
 Class E Notes 
  
 Aggregate Purchase Amounts for Receivables, if any, that were purchased in the related Collection Period 
  
 Amounts Allocated or Distributed on the Preceding Payment Date (including reconciliation of
such amounts with information provided by the Servicer prior to current Payment Date) 
  
 Distribution to Residual Interestholder 
  

					
	 	 	 	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

  
 EXHIBIT B 

 
 SERVICER’S MONTHLY CERTIFICATE 
  
 E*TRADE RV AND MARINE TRUST 2004-1 
  
 Determination Date: 
 Payment Date: 
 Collection Period Ending: 
  

	I.	Collection Account Summary 

  

	 	(a)	Available Funds 

  

	 	•	Collections 

  

	 	•	Principal and Interest Payments Received (including Prepayments) 

  

	 	•	Liquidation Proceeds (including Rebates): 

  

	 	•	Current Advance: 

  

	 	•	Amounts on deposit in the Reserve Account: 

  

	 	•	Purchase Amounts for Purchased Receivables: 

  

	 	•	Investment Earnings 

  

	 	•	Available Funds Sent to Trustee: 

  

	II.	Excess or Shortfalls 

  

	 	•	Amount of Interest Payments Due During the Collection Period for Receivables: 

  

	 	•	Amount of Interest Payments Received During the Collection Period for Receivables: 

  

	 	•	Amount of Current Month Excess/Shortfall: 

  

	III.	Calculation of Reserve Account Deposits/Withdrawals 

  

	 	•	Specified Reserve Account Balance: 

  

	 	•	Beginning Reserve Account Balance: 

  

	 	•	Deposits to Reserve Account (only if Reserve Account Balance is less than the Specified Account Balance) 

  

	 	•	Withdrawals from Reserve Account 

  

	 	•	Ending Reserve Account Balance: 

  

	IV.	Collections on Receivables 

  

	 	(a)	Interest Payments Received: 

 Scheduled Principal Payments
Received: 
 Principal Prepayments Received: 
 Total Interest and Principal Payments Received: 
  

					
	 	 	 	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

	 	(b)	Total Liquidation Proceeds: 

  
 Allocation of Liquidation Proceeds: 
  

	 	•	Amount Allocable to Interest Payments: 

  

	 	•	Amount Allocable to Principal Payments: 

  

	 	(c)	Purchase Amount-Receivables purchased from Trust:1 

  

	 	•	Amount Allocable to Interest: 

  

	 	•	Amount Allocable to Principal: 

  
 Total Collected Funds: 
  

	V.	Servicing and Trustee Fees: 

  
 (a) Servicing 
  
 Pool Balance of Receivables as of First Day of Collection Period: 
  

	 	•	multiplied by Servicing Fee Rate: 

  

	 	•	divided by 12: 

  
 Servicing Fee Amount: 
  

	 	(b)	Indenture Trustee Fee Amount 

  

	 	(c)	Owner Trustee Fee Amount 

  

	VI.	Pool Balance and Portfolio Performance 

  

	 	(a)	Pool Balance: 

 Initial Pool Balance: 
 Pool Balance as of the end of the second preceding Collection Period: 
 Pool Balance as of the end of the preceding Collection Period 
 Age of Pool in Months: 
  

	 	(b)	Default and Delinquency Performance (Includes Repossessions and Bankruptcies): 

  

	 	(i)	Cumulative Principal Balance of all Defaulted Receivables: 

  

	 	(ii)	Cumulative Net Realized Loss Ratio: 

  

	 	(iii)	Schedule of Liquidated Receivables 

  

	 	•	Description of Boat or Vehicle 

  

	 	•	Account Number 

  

	 	•	Original Principal Balance of the Liquidated Receivables 

  

	 	•	Outstanding Principal Balance of the Liquidated Receivables 

  

	1.	Identify pursuant to Section 4.09 of the Transfer and Servicing Agreement. 

  

					
	 	 	 	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

	 	•	Gross Recovery 

  

	 	•	Net of Expenses 

  

	 	•	Chargeoff Date 

  

	 	•	Repossession Date 

  

	 	•	Liquidation Date 

  

	 	(iv)	Current Period Defaulted Receivables: 

  

	 	•	Description of Boat or Vehicle 

  

	 	•	Account Number 

  

	 	•	Original Principal Balance of the Defaulted Receivables 

  

	 	•	Outstanding Principal Balance of the Defaulted Receivables 

  

	 	•	Recovery Net of Expenses 

  

	 	•	Chargeoff Date 

  

	 	(v)	Schedule of Repossession Inventory 

  

	 	•	Description of Vehicle 

  

	 	•	Account Number 

  

	 	•	Original Principal Balance of the Defaulted Receivables 

  

	 	•	Outstanding Principal Balance of the Defaulted Loan 

  

	 	•	Recovery Net of Expenses 

  

	 	•	Chargeoff Date 

  

	 	•	Repossession Date 

  

	VII.	Distributions of Available Funds 

  

	 	A.	Note Pool Factor: 

  

	 	B.	Servicing 

  

	 	•	Monthly Servicing Fee and any unpaid servicing fees from prior Payment Dates: 

  

	 	•	Servicer Reimbursements for Mistaken Deposits or Postings of Checks Returned for Insufficient Funds (not Otherwise Reimbursed to Servicer): 

  

	VIII.	Pool Statistics 

  

	 	•	Weighted Average Annual Percentage Rate: 

  

	 	•	Weighted Average Remaining Term: 

  

					
	 	 	 	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

 EXHIBIT C 
  
 FINAL CERTIFICATION OF CUSTODIAN 
  
 (date) 
  
 (to be addressed to the 
 Indenture Trustee) 
  

					
	 	 	 	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

	 	Re:	Transfer and Servicing Agreement dated as of December 16, 2004, among E*Trade RV and Marine Trust 2004-1, ETFC Asset Funding Corporation, and E*Trade Consumer Finance Corporation,
as Servicer (the “Agreement”) 

  
 Ladies and
Gentlemen: 
  
 In accordance with the provisions of Section
3.02 of the Agreement, the undersigned, as custodian, hereby certifies that as to each Receivable listed in the Schedule of Receivables, it has reviewed the related Receivable File and has determined that (a) all documents required to be
delivered to it pursuant to the Agreement are in its possession, (b) such documents have been reviewed by it and appear regular on their face and relate to such Receivable (for each of the Receivables listed on the attachment hereto a certified
confirmation of the lien is included in the Receivables File in lieu of a fully executed original Title Document or Lien Certificate or application therefor), and (c) based on its examination and only as to the foregoing documents, the information
set forth in the Schedule of Receivables respecting such Receivable is correct. Capitalized terms used but not defined herein shall have the meanings provided by the Agreement. 
  

			
	E*TRADE CONSUMER FINANCE CORPORATION
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

					
	 	 	 	 	 E*TRADE 2004-1
 Transfer and Servicing Agreement

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