Document:

<PAGE>

                                                                     EXHIBIT 4.2

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                   HOUSEHOLD CREDIT CARD MASTER NOTE TRUST I

                                    Issuer

                                      and

                       WELLS FARGO BANK MINNESOTA, N.A.

                 Indenture Trustee and Securities Intermediary

                     SERIES 2000-[.] INDENTURE SUPPLEMENT

                             Dated as of [.], 2000

--------------------------------------------------------------------------------
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<S>                                                                                                      <C>
ARTICLE I     Creation of the Series 2000-[ ] Notes..................................................     1
Section 1.01  Designation............................................................................     1
ARTICLE II    Definitions............................................................................     3
Section 2.01  Definitions............................................................................     3
ARTICLE III   Servicing Fee and Interchange..........................................................    16
Section 3.01  Servicing Compensation; Interchange....................................................    16
ARTICLE IV    Rights of Series 2000-[ ] Noteholders  and Allocation and Application of Collections...    17
Section 4.01  Collections and Allocations............................................................    17
Section 4.02  Determination of Monthly Interest......................................................    18
Section 4.03  Determination of Monthly Principal.....................................................    20
Section 4.04  Application of Available Funds on Deposit in the Collection Account....................    20
Section 4.05  Investor Charge-Offs...................................................................    23
Section 4.06  Subordinated Principal Collections.....................................................    23
Section 4.07  Excess Finance Charge and Administrative Collections...................................    23
Section 4.08  Shared Principal Collections...........................................................    23
Section 4.09  Reallocated Investor Finance Charge and Administrative Collections.....................    24
Section 4.10  Principal Funding Account..............................................................    25
Section 4.11  Reserve Account........................................................................    26
Section 4.12  Spread Account.........................................................................    27
Section 4.13  Determination of LIBOR.................................................................    30
Section 4.14  Investment Instructions................................................................    30
ARTICLE V     Delivery of Series 2000-[ ] Notes; Distributions; Reports to Series 2000-[ ]
              Noteholders............................................................................    31
Section 5.01  Delivery and Payment for the Series 2000-[ ] Notes.....................................    31
Section 5.02  Distributions..........................................................................    31
Section 5.03  Reports and Statements to Series 2000-[ ] Noteholders..................................    32
ARTICLE VI    Series 2000-[ ] Amortization Events....................................................    33
Section 6.01  Series 2000-[ ] Amortization Events....................................................    33
ARTICLE VII   Redemption of Series 2000-[ ] Notes; Series Final Maturity; Final Distributions........    35
Section 7.01  Optional Redemption of Series 2000-[ ] Notes...........................................    35
Section 7.02  Series Final Maturity..................................................................    35
ARTICLE VIII  Miscellaneous Provisions...............................................................    37
</TABLE>

                                      -i-
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<TABLE>
<S>                                                                                                      <C>
Section 8.01  Ratification of Agreement..............................................................    37
Section 8.02  Form of Delivery of the Series 2000-[ ] Notes..........................................    37
Section 8.03  Counterparts...........................................................................    37
Section 8.04  Governing Law..........................................................................    37
</TABLE>

                                      ii
<PAGE>

                                    EXHIBITS

EXHIBIT A-1  FORM OF CLASS A NOTE
EXHIBIT A-2  FORM OF CLASS B NOTE
EXHIBIT A-3  FORM OF CLASS C NOTE
EXHIBIT B    FORM OF MONTHLY PAYMENT INSTRUCTIONS AND NOTIFICATION TO THE
             INDENTURE TRUSTEE
EXHIBIT C    FORM OF MONTHLY STATEMENT
EXHIBIT D    FORM OF MONTHLY SERVICER'S CERTIFICATE

                                     -iii-
<PAGE>

     SERIES 2000-[.] INDENTURE SUPPLEMENT, dated as of [.], 2000 (the "Indenture
                                                                       ---------
Supplement"), between HOUSEHOLD CREDIT CARD MASTER NOTE TRUST I, a business
----------
trust organized and existing under the laws of the State of Delaware (herein,
the "Issuer" or the "Trust"), and WELLS FARGO BANK MINNESOTA, N.A., a [.], not
     ------          -----
in its individual capacity, but solely as indenture trustee (herein, together
with its successors in the trusts thereunder as provided in the Master Indenture
referred to below, the "Indenture Trustee") and Securities Intermediary, under
                        -----------------
the Master Indenture, dated [.], 2000 (the "Indenture") between the Issuer and
                                            ---------
the Indenture Trustee (the Indenture, together with this Indenture Supplement,
the "Agreement").
     ---------

     Pursuant to Section 2.12 of the Indenture, the Issuer may direct the
Indenture Trustee to issue one or more Series of Notes.  The Principal Terms of
this Series are set forth in this Indenture Supplement to the Indenture.

     Pursuant to this Indenture Supplement, the Issuer shall create the initial
Series of Notes and specify the Principal Terms thereof.

     In addition to the Grant of the Indenture, the Issuer hereby Grants to the
Indenture Trustee, for the exclusive benefit of the Holders of the Series 2000-
[.] Notes all of the Issuer's right, title and interest in and to (a) the
Collections on the Receivables allocated to the Holders of the Series 2000-[.]
Notes and (b) the Series 2000-[.] Accounts, including all Eligible Investments
therein and all income from the investment of funds therein.  Such Grants are
made in trust to secure the Series 2000-[.] Notes equally and ratably without
prejudice, priority or distinction, except as expressly provided in the
Agreement, between any Series 2000-[.] Notes, and to secure (i) the payment of
all amounts due on the Series 2000-[.] Notes in accordance with their terms,
(ii) the payment of all other sums payable under the Agreement and (iii)
compliance with the provisions of the Agreement all as provided in the
Agreement.

     The Indenture Trustee acknowledges such Grant, accepts the trusts hereunder
in accordance with the provisions hereof and agrees to perform the duties
herein.

                                   ARTICLE I

                     Creation of the Series 2000-[.] Notes
                     -------------------------------------

     Section 1.01.  Designation
                    -----------

          (a) There is hereby created a Series of Notes to be issued pursuant to
the Indenture and this Indenture Supplement to be known as "Household Credit
                                                            ----------------
Card Master Note Trust I, Series 2000-[.]" or the "Series 2000-[.] Notes."  The
-----------------------------------------          ---------------------
Series 2000-[.] Notes shall be issued in three Classes, the first of which shall
be known as the "Class A Series 2000-[.] Floating Rate Asset Backed Notes," the
                 ---------------------------------------------------------
second of which shall be known as the "Class B Series 2000-[.] Floating Rate
                                       -------------------------------------
Asset Backed Notes" and the third of which shall be known as the "Class C Series
------------------                                                --------------
2000-[.] Floating Rate Asset Backed Notes."  The Series 2000--[.] Notes shall be
-----------------------------------------
due and payable on the Series 2000--[.] Final Maturity Date.

          (b) Series 2000-[.] shall be a Pool One Series and shall be in
Reallocation Group One, Principal Sharing Series Group One, and Excess Finance
Charge Sharing Group One and shall not be in a Shared Enhancement Group or be
allocated Shared Transferor Principal Collections.  Series 2000-[.] shall not be
subordinated to any other Series.  Notwithstanding any provision in the
Indenture or in this Indenture Supplement to the contrary, the first
Distribution Date with respect to Series 2000-[.] shall be the [.] 2000
Distribution Date and the first Due Period shall begin on and include [.], 2000
and end on and include [.], 2000.
<PAGE>

          (c) In the event that any term or provision contained herein shall
conflict with or be inconsistent with any term or provision contained in the
Indenture, the terms and provisions of this Indenture Supplement shall be
controlling.  All capitalized terms not otherwise defined herein are defined in
the Indenture, the Transfer and Servicing Agreement or the Trust Agreement.
Each capitalized term defined herein shall relate only to the Series 2000-[.]
Notes and no other Series of Notes issued by the Issuer.

                              [END OF ARTICLE I]

                                       2
<PAGE>

                                  ARTICLE II

                                  Definitions

     Section 2.01.  Definitions.
                    -----------

          (a) Whenever used in this Indenture Supplement, the following words
and phrases shall have the following meanings, and the definitions of such terms
are applicable to the singular as well as the plural forms of such terms and the
masculine as well as the feminine and neuter genders of such terms.

          "Accumulation Period Factor" shall mean, with respect to any Due
           --------------------------
Period, a fraction, the numerator of which is equal to the sum of the initial
invested amounts of all outstanding Series in Principal Sharing Group One and
the denominator of which is equal to the sum of (a) the Initial Invested Amount,
and (b) the initial invested amounts of all outstanding Principal Sharing Group
One Series (other than Series 2000-[.]) which are not expected to be in their
revolving periods from such date to the Expected Principal Payment Date;
provided, however, that this definition may be changed at anytime if the Rating
Agency Condition is satisfied.

          "Accumulation Period Length" shall have the meaning assigned such term
           --------------------------
in subsection 4.04(e).

          "Additional Amounts" shall mean, with respect to any Distribution
           ------------------
Date, the sum of the amounts determined (without regard to the sufficiency of
Collections to satisfy such amounts) pursuant to subsection 4.04(a)(vi) for such
Distribution Date.

          "Additional Interest" shall mean, with respect to any Distribution
           -------------------
Date, Class A Additional Interest, Class B Additional Interest and the Class C
Additional Interest for such Distribution Date.

          "Adjusted Invested Amount" shall mean, with respect to any date of
           ------------------------
determination, an amount equal to the Invested Amount minus the Principal
Funding Account Balance on such date.

          "Adjusted Pool One Principal Balance" shall mean an amount equal to
           -----------------------------------
the greater of (a) the sum of (i) the total amount of Principal Receivables in
Pool One as of the close of business on the last day of the immediately
preceding Due Period (or with respect to the first Due Period, the total amount
of Principal Receivables in Pool One as of the Closing Date) and (ii) the
principal amount on deposit in the Special Funding Account with respect to Pool
One as of the close of business on such last day (or with respect to the first
Due Period, the Closing Date) and (b) the sum of the numerators used to
calculate the investor percentages for allocations with respect to Principal
Receivables, Finance Charge and Administrative Receivables or Defaulted Amounts,
as applicable, for all Pool One Series outstanding as of the date as to which
such determination is being made; provided, however, that with respect to any
Due Period in which an Addition Date for an Aggregate Addition or a Removal Date
occurs, the amount in clause (a)(i) above shall be the sum of the amounts for
each day in such Due Period computed as follows and divided by the number of
days in such Due Period: (1) the aggregate amount of Principal Receivables in
Pool One as of the close of business on the last day of the prior Due Period,
for each day in the period from and including the first day of such Due Period
to but excluding the related Additional Cut-Off Date or Removal Date and (2) the
aggregate amount of Principal Receivables in Pool One as of the close of
business on the related Additional Cut-off Date or Removal Date after adjusting
for the aggregate amount of Principal Receivables added to or removed from Pool
One on the related Additional Cut-off Date or

                                       3
<PAGE>

Removal Date, as the case may be, for each day in the period from and including
the related Additional Cut-off Date or Removal Date to and including the last
day of such Due Period.

          "Administration Fee" shall mean, with respect to any Distribution
           ------------------
Date, the fee payable to the Administrator on such date pursuant to the
Administration Agreement.

          "Available Investor Finance Charge and Administrative Collections"
           ----------------------------------------------------------------
shall mean, with respect to any Due Period, an amount equal to the sum of (a) an
amount equal to the Investor Finance Charge and Administrative Collections, (b)
Principal Funding Investment Proceeds, if any, with respect to the related
Distribution Date, and (c) amounts, if any, to be withdrawn from the Reserve
Account which will be deposited into the Collection Account on the related
Distribution Date to be treated as Available Investor Finance Charge and
Administrative Collections pursuant to subsections 4.11(b) and (d).

          "Available Investor Principal Collections" shall mean, with respect to
           ----------------------------------------
any Due Period, an amount equal to the sum of (a) (i) an amount equal to the
Investor Percentage of all Collections of Principal Receivables received during
such Due Period minus (ii) the amount of Subordinated Principal Collections with
respect to such Due Period which pursuant to Section 4.06 are required to fund
the Required Amount for the related Distribution Date, (b) any Shared Principal
Collections with respect to other Principal Sharing Series with respect to Pool
One (including any amounts on deposit in the Special Funding Account with
respect to Pool One that are allocated to Series 2000-[.] pursuant to the
Agreement for application as Shared Principal Collections), and (c) any other
amounts which pursuant to Section 4.04 hereof are to be treated as Available
Investor Principal Collections with respect to the related Distribution Date,
including proceeds of any new Series to the extent permitted by the Indenture
Trustee acting on behalf of the affected Noteholders.

          "Available Reserve Account Amount" shall mean, with respect to any
           --------------------------------
Distribution Date, the lesser of (a) the amount on deposit in the Reserve
Account on such date (after taking into account any interest and earnings
retained in the Reserve Account pursuant to subsection 4.11(b) and 4.11(d) on
such date, but before giving effect to any (i) deposit made or to be made
pursuant to subsection 4.04(a)(ix) to the Reserve Account on such date, or (ii)
any withdrawal made or to be made pursuant to subsection 4.11(d), (e) and (f)
from the Reserve Account with respect to such date) and (b) the Required Reserve
Account Amount.

          "Available Spread Account Amount" shall mean, with respect to any
           -------------------------------
Distribution Date, an amount equal to the lesser of (a) the amount on deposit in
the Spread Account (exclusive of Investment Earnings) on such date (before
giving effect to any (i) deposit made or to be made pursuant to subsection
4.04(a)(x) to the Spread Account on such date, or any withdrawal made or to be
made pursuant to subsection 4.12(c) or (d) from the Spread Account with respect
to such date) and (b) the Required Spread Account Amount for such Distribution
Date.

          "Base Rate" shall mean the weighted average of the Class A Note
           ---------
Interest Rate, the Class B Note Interest Rate and the Class C Note Interest Rate
(weighted based on the Class A Note Principal Balance, the Class B Note
Principal Balance and the Class C Note Principal Balance as of the last day of
the preceding Due Period), plus the Servicing Fee Rate.

          "Class A Additional Interest" shall have the meaning specified in
           ---------------------------
subsection 4.02(a).

          "Class A Interest Shortfall" shall have the meaning specified in
           --------------------------
subsection 4.02(a).

          "Class A Monthly Interest" shall have the meaning specified in
           ------------------------
subsection 4.02(a).

                                       4
<PAGE>

          "Class A Note Initial Principal Balance" shall mean $[.].
           --------------------------------------

          "Class A Note Interest Rate" shall mean a per annum rate of [.]% in
           --------------------------
excess of LIBOR as determined (i) on [.], 2000, for the period from and
including the Closing Date through and excluding [.], 2000 and (ii) on the
related LIBOR Determination Date with respect to each Interest Period
thereafter.

          "Class A Note Principal Balance" shall mean, with respect to any date,
           ------------------------------
the Class A Note Initial Principal Balance, minus the aggregate amount of any
principal payments made to the Class A Noteholders prior to such date.

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

          "Class A Notes" shall mean any one of the Notes executed by the
           -------------
Transferor and authenticated by or on behalf of the Indenture Trustee,
substantially in the form of Exhibit A-1.
                             -----------

          "Class B Additional Interest" shall have the meaning specified in
           ---------------------------
subsection 4.02(b).

          "Class B Interest Shortfall" shall have the meaning specified in
           --------------------------
subsection 4.02(b).

          "Class B Monthly Interest" shall have the meaning specified in
           ------------------------
subsection 4.02(b).

          "Class B Note Initial Principal Balance" shall mean $[.].
           --------------------------------------

          "Class B Note Interest Rate" shall mean a per annum rate of [.]% in
          ---------------------------
excess of LIBOR as determined (i) on [.], 2000, for the period from and
including the Closing Date through and excluding [.], 2000 and (ii) on the
related LIBOR Determination Date with respect to each Interest Period
thereafter.

          "Class B Note Principal Balance" shall mean, with respect to any date,
           ------------------------------
the Class B Note Initial Principal Balance, minus the aggregate amount of any
principal payments made to the Class B Noteholders prior to such date.

          "Class B Noteholder" shall mean the Person in whose name a Class B
           ------------------
Note is registered in the Note Register.

          "Class B Notes" shall mean any one of the Notes executed by the
           -------------
Transferor and authenticated by or on behalf of the Indenture Trustee,
substantially in the form of Exhibit A-2.
                             -----------

          "Class C Additional Interest" shall have the meaning specified in
           ---------------------------
subsection 4.02(c).

          "Class C Interest Shortfall" shall have the meaning specified in
           --------------------------
subsection 4.02(c).

          "Class C Monthly Interest" shall have the meaning specified in
           ------------------------
subsection 4.02(c).

          "Class C Note Initial Principal Balance" shall mean $[.].
           --------------------------------------

          "Class C Note Interest Rate" shall mean a per annum rate of [.]% in
           --------------------------
excess of LIBOR as determined (i) on [.], 2000, for the period from and
including the Closing Date through and excluding [.], 2000 and (ii) on the
related LIBOR Determination Date with respect to each Interest Period
thereafter.

                                       5
<PAGE>

          "Class C Note Principal Balance" shall mean, with respect to any date,
           ------------------------------
the Class C Note Initial Principal Balance, minus the aggregate amount of any
principal payments made to the Class C Noteholders prior to such date.

          "Class C Noteholder" shall mean the Person in whose name a Class C
           ------------------
Note is registered in the Note Register.

          "Class C Notes" shall mean any one of the Notes executed by the
           -------------
Transferor and authenticated by or on behalf of the Indenture Trustee,
substantially in the form of Exhibit A-3.
                             -----------

          "Closing Date" shall mean [.], 2000.
           ------------

          "Controlled Accumulation Amount" shall mean for any Distribution Date
           ------------------------------
with respect to the Controlled Accumulation Period, $[.]; provided, however,
that if the Accumulation Period Length is determined to be less than 12 months
pursuant to subsection 4.04(e), the Controlled Accumulation Amount for each
Distribution Date with respect to the Controlled Accumulation Period will be
equal to (a) the product of (i) the Initial Invested Amount and (ii) the
Accumulation Period Factor for such Due Period divided by (b) the Required
Accumulation Factor Number.

          "Controlled Accumulation Period" shall mean, unless an Amortization
           ------------------------------
Event shall have occurred prior thereto, the period commencing at the close of
business on [.], 20[.] or such later date as is determined in accordance with
subsection 4.04(e) and ending on the first to occur of (a) the commencement of
the Early Amortization Period, (b) the payment in full of the Note Principal
Balance and (c) the Series 2000-[.] Final Maturity Date.

          "Controlled Deposit Amount" shall mean, with respect to any
           -------------------------
Distribution Date with respect to the Controlled Accumulation Period, an amount
equal to the sum of (a) the Controlled Accumulation Amount for such Distribution
Date and (b) any existing Deficit Controlled Accumulation Amount.

          "Covered Amount" shall mean an amount, determined as of each
           --------------
Distribution Date with respect to any Interest Period, equal to the sum of (a)
the product of (i) a fraction, the numerator of which is the actual number of
days in such Interest Period and the denominator of which is 360, times (ii) the
Class A Note Interest Rate in effect with respect to such Interest Period, times
(iii) the aggregate amount on deposit in the Principal Funding Account up to the
Class A Note Principal Balance as of the Record Date preceding such Distribution
Date, (b) the product of (i) a fraction, the numerator of which is the actual
number of days in such Interest Period and the denominator of which is 360,
times (ii) the Class B Note Interest Rate in effect with respect to such
Interest Period, times (iii) the lesser of (A) the aggregate amount on deposit
in the Principal Funding Account in excess of the Class A Note Principal Balance
and (B) the Class B Note Principal Balance, in each case as of the Record Date
preceding such Distribution Date, and (c) the product of (i) a fraction, the
numerator of which is the actual number of days in such Interest Period and the
denominator of which is 360, times (ii) the Class C Note Interest Rate in effect
with respect to such Interest Period, times (iii) the aggregate amount on
deposit in the Principal Funding Account in excess of the Class A Note Principal
Balance and the Class B Note Principal Balance as of the Record Date preceding
such Distribution Date.

          "Deficit Controlled Accumulation Amount" shall mean (a) on the first
           --------------------------------------
Distribution Date during the Controlled Accumulation Period, the excess, if any,
of the Controlled Accumulation Amount for such Distribution Date over the amount
deposited in the Principal Funding Account on such Distribution Date and (b) on
each subsequent Distribution Date with respect to the Controlled Accumulation
Period, the excess, if any, of the Controlled Deposit Amount for such subsequent

                                       6
<PAGE>

Distribution Date over the amount deposited into the Principal Funding Account
on any previous Distribution Date.

          "Distribution Date" shall mean [.], 2000 and the fifteenth day of each
           -----------------
calendar month thereafter, or if such fifteenth day is not a Business Day, the
next succeeding Business Day.

          "Early Amortization Period" shall mean the period commencing on the
           -------------------------
day on which an Amortization Event with respect to Series 2000-[.] is deemed to
have occurred, and ending on the first to occur of (i) the payment in full of
the Note Principal Balance or (ii) the Series 2000-[.] Final Maturity Date.

          "Excess Spread" shall mean with respect to any Due Period, the excess
           -------------
of (a) the Reallocated Investor Finance Charge and Administrative Collections
and Excess Finance Charge and Administrative Collections allocated to Series
2000-[.] for such Due Period over (b) the amount to be distributed by the
Indenture Trustee pursuant to subsections 4.04(a)(i) through (viii).

          "Excess Spread Percentage" shall mean, with respect to any Due Period,
           ------------------------
an amount equal to the annualized percentage equivalent of a fraction, the
numerator of which is the product of (a) an amount equal to the Excess Spread
with respect to such Due Period, and (b) twelve, and the denominator of which is
the Adjusted Invested Amount on the first day of such Due Period.

          "Expected Principal Payment Date" shall mean the [.]
           -------------------------------
20[.] Distribution Date.

          "Finance Charge Shortfall" shall have the meaning specified in Section
           ------------------------
4.07.

          "Fixed Investor Percentage" shall mean, with respect to any Due Period
           -------------------------
or portion thereof occurring after the end of the Revolving Period, the
percentage equivalent (which percentage shall never exceed 100%) of a fraction,
(a) the numerator of which is the Adjusted Invested Amount as of the close of
business on the last day of the Revolving Period and (b) the denominator of
which is the Adjusted Pool One Principal Balance.

          "Floating Investor Percentage" shall mean, with respect to any Due
           ----------------------------
Period, the percentage equivalent (which percentage shall never exceed 100%) of
a fraction, (a) the numerator of which is the Adjusted Invested Amount as of the
close of business on the last day of the preceding Due Period (or with respect
to the first Due Period, the Initial Invested Amount) and (b) the denominator of
which is the Adjusted Pool One Principal Balance.

          "Initial Invested Amount" shall mean $[.].
           -----------------------

          "Interest Period" shall mean, with respect to any Distribution Date,
           ---------------
the period from and including the Distribution Date immediately preceding such
Distribution Date (or, in the case of the first Distribution Date, from and
including the Closing Date) to but excluding such Distribution Date.

          "Invested Amount" shall mean, as of any date of determination, an
           ---------------
amount equal to the initial principal amount of the Series 2000--[.] Notes minus
the amount of principal previously paid to the Series 2000--[.] Noteholders with
respect to the Class A Notes, the Class B Notes and the Class C Notes minus the
amount of unreimbursed Investor Charge-Offs and Subordinated Principal
Collections.

          "Investment Earnings" shall mean, with respect to any Distribution
           -------------------
Date, all interest and earnings on Eligible Investments included in the Spread
Account (net of losses and investment expenses)

                                       7
<PAGE>

during the period commencing on and including the Distribution Date immediately
preceding such Distribution Date and ending on but excluding such Distribution
Date.

          "Investor Charge-Offs" shall have the meaning specified in Section
           --------------------
4.05.

          "Investor Defaulted Amount" shall mean, with respect to any
           -------------------------
Distribution Date, an amount equal to the product of (a) the Defaulted Amount
for the related Due Period and (b) the Investor Percentage for such Due Period.

          "Investor Finance Charge and Administrative Collections" shall mean,
           ------------------------------------------------------
with respect to any Distribution Date, an amount equal to the product of (a)
Floating Investor Percentage for the related Due Period and (b) Collections of
Finance Charge and Administrative Receivables deposited in the Collection
Account for the related Due Period.

          "Investor Percentage" shall mean, for any Due Period, (a) with respect
           -------------------
to Finance Charge and Administrative Receivables and Defaulted Amounts at any
time and Principal Receivables during the Revolving Period, the Floating
Investor Percentage, and (b) with respect to Principal Receivables during the
Controlled Accumulation Period or the Early Amortization Period, the Fixed
Investor Percentage.

          "LIBOR" shall mean, for any Interest Period, the London interbank
           -----
offered rate for one-month United States dollar deposits determined by the
Indenture Trustee for each Interest Period in accordance with the provisions of
Section 4.13.

          "LIBOR Determination Date" shall mean (i) [.], 2000 for the period
           ------------------------
from and including the Closing Date through and including [.], 2000 and (ii) the
second London Business Day prior to the commencement of the second and each
subsequent Interest Period.

          "London Business Day" shall mean any Business Day on which dealings in
           -------------------
deposits in United States dollars are transacted in the London interbank market.

          "Modified Excess Spread Percentage" shall mean, with respect to the
           ---------------------------------
first Due Period an amount equal to the percentage equivalent of a fraction,

          (a)  the numerator of which is an amount equal to twelve times the
               excess, if any, of:

          (i)  the amount of Collections of Reallocated Investor Finance Charge
               and Administrative Receivables and Excess Finance Charge and
               Administrative Collections deposited in the Collection Account
               and allocable to the Series 2000-[.] Noteholders for such first
               Due Period, over

          (ii) the sum of,

               (A)  the product of (1) the Class A Monthly Interest for the
                    related Interest Period times (2) a fraction (I) the
                    numerator of which is the actual number of days in such
                    first Due Period and (II) the denominator of which is the
                    actual number of days in the related Interest Period, plus

               (B)  the product of (1) the Class B Monthly Interest for such
                    Interest Period times (2) a fraction (I) the numerator of
                    which is the actual number of days in such first Due Period
                    and (II) the denominator of which is the actual number of
                    days in such Interest Period, plus

                                       8
<PAGE>

               (C)  the product of (1) the Class C Monthly Interest for such
                    Interest Period times (2) a fraction (I) the numerator of
                    which is the actual number of days in such first Due Period
                    and (II) the denominator of which is the actual number of
                    days in such Interest Period, plus

               (D)  the Monthly Servicing Fee and Monthly Administration Fee
                    with respect to the Distribution Date relating to such first
                    Due Period, plus

               (E)  the Investor Defaulted Amount with respect to the related
                    Distribution Date; and

          (b)  the denominator of which is the Initial Invested Amount.

          "Monthly Administration Fee" shall mean, one-twelfth of the
           --------------------------
Administration Fee.

          "Monthly Interest" shall mean, with respect to any Distribution Date,
           ----------------
the sum of the Class A Monthly Interest, the Class B Monthly Interest and the
Class C Monthly Interest for such Distribution Date.

          "Monthly Principal" shall mean the monthly principal distributable in
           -----------------
respect of the Notes as calculated in accordance with Section 4.03.

          "Monthly Servicing Fee" shall mean, for any Distribution Date, an
           ---------------------
amount equal to one-twelfth of the product of:

          (a)  the Servicing Fee Rate;

          (b)  the Floating Investor Percentage for the related Due Period; and

          (c)  the total amount of Principal Receivables as of the close of
business on the last day of the immediately preceding Due Period, or with
respect to the first Due Period, the total amount of Principal Receivables as of
the Closing Date, in either case, excluding the principal portion of
Participation Interests;

provided, however, that with respect to any Due Period in which an Addition Date
for an Aggregate Addition or a Removal Date occurs, the amount in clause (c)
above shall be the sum of the amounts for each day in that Due Period computed
as follows and divided by the number of days in that Due Period:

          (i)  the aggregate amount of principal receivables, excluding the
               principal portion of participation interests, as of the close of
               business on the last day of the prior due period, for each day in
               the period from and including the first day of that due period to
               but excluding the related additional cut-off date or removal
               date; and

          (ii) the aggregate amount of principal receivables, excluding the
               principal portion of participation interests, as of the close of
               business on the related Additional Cut-off Date or Removal Date
               after adjusting for the aggregate amount of Principal
               Receivables, excluding the principal portion of Participation
               Interests, added to or removed on the related Additional Cut-off
               Date or Removal Date, as the case may be, for each day in the
               period from and including the related additional cut-off date or
               removal date to and including the last day of that due period;

                                       9
<PAGE>

provided further, that with respect to the first Distribution Date, the Monthly
Servicing Fee will equal $[.].

          "Monthly Subordination Amount" shall mean with respect to any Due
           ----------------------------
Period an amount equal to the sum of:

          (a)  the lower of (i) the excess of the Class A Monthly Interest over
the Reallocated Investor Finance Charge and Administrative Collections and
Excess Finance Charge and Administrative Collections allocated with respect
thereto pursuant to subsection 4.04(a)(i) and (ii) the greater of (A) (1) the
product of (I) [.]% and (II) the Initial Invested Amount minus (2) the amount of
unreimbursed Investor Charge-Offs (after giving effect to Investor Charge-Offs
for the related Due Period) and unreimbursed Subordinated Principal Collections
(as of the previous Distribution Date) and (B) zero; and

          (b)  the lower of (i) the excess of the Class B Monthly Interest, the
Monthly Servicing Fee (if HFC or an Affiliate of HFC is no longer the Servicer)
and the Monthly Servicing Fees previously due but unpaid for any prior
Distribution Date (if HFC or an Affiliate of HFC is no longer the Servicer),
over the Reallocated Investor Finance Charge and Administrative Collections and
Excess Finance Charge and Administrative Collections allocated with respect
thereto pursuant to subsections 4.04(a)(ii) and (iii) and (ii) the greater of
(A) the product of (1) [.]% and (2) the Initial Investor Interest minus the
amount of unreimbursed Investor Charge-Offs (after giving effect to Investor
Charge-Offs for the related Due Period) and unreimbursed Subordinated Principal
Collections as of the previous Distribution Date) and (B) zero.

          "Note Principal Balance" shall mean, with respect to any date, the sum
           ----------------------
of the Class A Note Principal Balance, the Class B Note Principal Balance and
the Class C Note Principal Balance.

          "Percentage Allocation" shall have the meaning set forth in Subsection
           ---------------------
4.01(c)(ii)(B).

          "Pool One" shall mean the pool of Receivables listed on Schedule P1 of
           --------
the Indenture.

          "Pool One Series" shall mean Series 2000--[.] and each other Series
           ---------------
which is designated as a Pool One Series in the related Indenture Supplement.

          "Principal Funding Account" shall have the meaning set forth in
           -------------------------
subsection 4.10(a).

          "Principal Funding Account Balance" shall mean, with respect to any
           ---------------------------------
date of determination, the principal amount, if any, on deposit in the Principal
Funding Account on such date of determination.

          "Principal Funding Investment Proceeds" shall mean, with respect to
           -------------------------------------
each Distribution Date, the investment earnings on funds in the Principal
Funding Account (net of investment expenses and losses) for the period from and
including the immediately preceding Distribution Date to but excluding such
Distribution Date.

          "Principal Sharing Group One" shall mean Series 2000--[.] and each
           ---------------------------
other Series hereafter specified in the related Indenture Supplement to be
included in Principal Sharing Group One.

          "Quarterly Excess Spread Percentage" shall mean
           ----------------------------------

          (a) with respect to the [Month 1] 2000 Distribution Date, the Modified
Excess Spread Percentage,

                                      10
<PAGE>

          (b) with respect to the [Month 2] 2000 Distribution Date, the
percentage equivalent of a fraction the numerator of which is the sum of (i) the
Modified Excess Spread Percentage for the first Due Period and (ii) the Excess
Spread Percentage with respect to the [Month 1] 2000 Due Period and the
denominator of which is two,

          (c) with respect to the [Month 3] 2000 Distribution Date, the
percentage equivalent of a fraction the numerator of which is the sum of (i) the
Modified Excess Spread Percentage for the first Due Period, (ii) the Excess
Spread Percentage with respect to the [Month 1] 2000 Due Period, and (iii) the
Excess Spread Percentage with respect to the [Month 2] 2000 Due Period and the
denominator of which is three, and

          (d) with respect to the [Month 4] 2000 Distribution Date and each
Distribution Date thereafter, the percentage equivalent of a fraction the
numerator of which is the sum of the Excess Spread Percentages with respect to
the immediately preceding three Due Periods and the denominator of which is
three.

          "Rating Agency" shall mean each of Standard & Poor's, Moody's and
           -------------
Fitch.

          "Reallocated Investor Finance Charge and Administrative Collections"
           ------------------------------------------------------------------
shall mean, with respect to any Due Period, that portion of Reallocation Group
One Investor Finance Charge and Administrative Collections allocated to Series
2000-[.] pursuant to Section 4.09.

          "Reallocation Group One" shall mean Series 2000-[.] and each other
           ----------------------
Series hereafter specified in the related Indenture Supplement to be included in
Reallocation Group One.

          "Reallocation Group One Investor Additional Amounts" shall mean, with
           --------------------------------------------------
respect to any Distribution Date, the sum of (a) Additional Amounts for such
Distribution Date and (b) for all other Series included in Reallocation Group
One, the aggregate net amount by which the Invested Amounts of such Series have
been reduced as a result of investor charge-offs, subordination of principal
collections and funding the investor default amounts in respect of any Class or
Series Enhancement interests of such Series as of such Distribution Date.

          "Reallocation Group One Investor Default Amount" shall mean, with
           ----------------------------------------------
respect to any Distribution Date, the sum of (a) the Investor Defaulted Amount
for such Distribution Date and (b) the aggregate amount of the investor default
amounts for all other Series included in Reallocation Group One for such
Distribution Date.

          "Reallocation Group One Investor Finance Charge and Administrative
           -----------------------------------------------------------------
Collections" shall mean, with respect to any Distribution Date, the sum of (a)
-----------
the aggregate amount of Available Investor Finance Charge and Administrative
Collections for such Distribution Date and (b) the aggregate amount of the
available investor finance charge and administrative collections for all other
Series included in Reallocation Group One for such Distribution Date.

          "Reallocation Group One Monthly Interest" shall mean, with respect to
           ---------------------------------------
any Distribution Date, the sum of (a) Monthly Interest for Series 2000-[.] for
such Distribution Date, including overdue Monthly Interest and interest on such
overdue Monthly Interest, and (b) the aggregate amount of monthly interest,
including overdue monthly interest and interest on such overdue monthly
interest, if applicable, for all other Series included in Reallocation Group One
for such Distribution Date.

          "Reallocation Group One Monthly Fees" shall mean with respect to any
           -----------------------------------
Distribution Date, the sum of (a) the Monthly Servicing Fee and the Monthly
Administration Fee for such Distribution

                                      11
<PAGE>

Date, (b) the Monthly Servicing Fee and the Monthly Administration Fee past due
but not paid for any prior Distribution Date, (c) the aggregate amount of
servicing fees and administration fees (including any past due servicing fees
and administration fees) plus any additional fees and amounts, including credit
enhancement fees for all other Series included in Reallocation Group One for
such Distribution Date and (d) reserve account funding requirements for all
Series included in Reallocation Group One for such Distribution Date.

          "Reassignment Amount" shall mean, with respect to any Distribution
           -------------------
Date, after giving effect to any deposits and distributions otherwise to be made
on such Distribution Date, the sum of (a) the Note Principal Balance on such
Distribution Date, plus (b) Monthly Interest for such Distribution Date and any
Monthly Interest previously due but not distributed to the Series 2000-[.]
Noteholders, plus (c) the amount of Additional Interest, if any, for such
Distribution Date and any Additional Interest previously due but not distributed
to the Series 2000-[.] Noteholders on a prior Distribution Date.

          "Reference Banks" shall mean four major banks in the London interbank
           ---------------
market selected by the Servicer.

          "Required Accumulation Factor Number" shall be equal to a fraction,
           -----------------------------------
rounded upwards to the nearest whole number, the numerator of which is one and
the denominator of which is equal to the lowest monthly principal payment rate
on the Accounts, expressed as a decimal, for the 12 months preceding the date of
such calculation; provided, however, that this definition may be changed at any
time if the Rating Agency Condition is satisfied.

          "Required Amount" shall mean, with respect to any Distribution Date,
           ---------------
an amount equal to the sum of the amounts described in subsections 4.04(a)(i),
(ii) and (iii).

          "Required Reserve Account Amount" shall mean, with respect to any
           -------------------------------
Distribution Date on or after the Reserve Account Funding Date, an amount equal
to (a) [0.5]% of the Class A Note Principal Balance or (b) any other amount
designated by the Transferor; provided, however, that if such designation is of
a lesser amount, the Transferor shall (i) provide the Servicer and the Indenture
Trustee with evidence that the Rating Agency Condition shall have been satisfied
and (ii) deliver to the Indenture Trustee a certificate of an authorized officer
to the effect that, based on the facts known to such officer at such time, in
the reasonable belief of the Transferor, such designation will not cause an
Amortization Event or an event that, after the giving of notice or the lapse of
time, would cause an Amortization Event to occur with respect to Series 2000-
[.].

          "Required Spread Account Amount" shall mean, with respect to any date
           ------------------------------
of determination, the product of (a) the Spread Account Percentage in effect on
such date and (b) the Initial Invested Amount; provided, that in no event will
the Required Spread Account Amount exceed the Class C Note Principal Balance
minus the excess, if any, of the Principal Funding Account Balance over the sum
of the Class A Note Principal Balance and the Class B Note Principal Balance on
such date of determination.

          "Required Transferor Amount" shall have the meaning specified in the
           --------------------------
Master Indenture.

          "Required Transferor Percentage" shall mean with respect to Pool One,
           ------------------------------
(a) initially [.]% or (b) any other percentage designated by the Transferor;
provided, however, that if such designation is of a lesser amount, the
Transferor shall (i) provide the Servicer and the Indenture Trustee with
evidence that the Rating Agency Condition shall have been satisfied and (ii)
deliver to the Indenture Trustee a certificate of an authorized officer to the
effect that, based on the facts known to such officer at such time, in the
reasonable belief of the Transferor, such designation will not have an Adverse
Effect.

                                      12
<PAGE>

          "Reserve Account" shall have the meaning specified in subsection
           ---------------
4.11(a).

          "Reserve Account Funding Date" shall mean the Distribution Date which
           ----------------------------
occurs not later than the Distribution Date with respect to the Due Period which
commences 3 months prior to the commencement of the Controlled Accumulation
Period.

          "Reserve Account Surplus" shall mean, as of any Distribution Date
           -----------------------
following the Reserve Account Funding Date, the amount, if any, by which the
amount on deposit in the Reserve Account exceeds the Required Reserve Account
Amount.

          "Reserve Draw Amount" shall mean, with respect to each Distribution
           -------------------
Date relating to the Controlled Accumulation Period or the first Distribution
Date relating to the Early Amortization Period, the amount, if any, by which the
Principal Funding Investment Proceeds for such Distribution Date are less than
the Covered Amount determined as of such Distribution Date.

          "Revolving Period" shall mean the period beginning on the Closing Date
           ----------------
and ending on the earlier of the close of business on the day immediately
preceding the day the Controlled Accumulation Period commences or the Early
Amortization Period commences.

          "Series 2000-[.]" shall mean the Series of Notes the terms of which
           ---------------
are specified in this Indenture Supplement.

          "Series 2000-[.] Amortization Event" shall have the meaning specified
           ----------------------------------
in Section 6.01.

          "Series 2000-[.] Final Maturity Date" shall mean the earliest to occur
           -----------------------------------
of (a) the Distribution Date on which the Notes are paid in full, (b) the [.]
Distribution Date and (c) the termination of the Trust pursuant to Section 11.01
of the Indenture.

          "Series 2000-[.] Note" shall mean a Class A Note or a Class B Note or
           --------------------
a Class C Note.

          "Series 2000-[.] Noteholder" shall mean a Class A Noteholder or a
           --------------------------
Class B Noteholder or a Class C Noteholder.

          "Series 2000-[.] Noteholders' Collateral" shall mean the Noteholders'
           ---------------------------------------
Collateral for Series 2000-[.].

          "Series 2000-[.] Principal Shortfall" shall have the meaning specified
           -----------------------------------
in subsection 4.08(a).

          "Series Adjusted Invested Amount" shall mean, with respect to any Due
          -------------------------------
Period:

          (a) during the Revolving Period, the Invested Amount as of the last
day of the immediately preceding Due Period;

          (b) during the Controlled Accumulation Period, the Invested Amount as
of the close of business on the last day of the Revolving Period less the
Principal Funding Account Balance on such date of determination; provided,
however, that on any date, at the option of the Seller (the exercise of such
option to be evidenced by written instructions from the Seller to the Servicer
and the Indenture Trustee), such amount may be reduced below the amount
specified for the previous Due Period to an amount not less than the greater of
(i) the Invested Amount as of the last day of the immediately preceding Due
Period (less the amount of any distribution of principal made to Noteholders of
this Series since the last

                                      13
<PAGE>

day of the immediately preceding Due Period) and (ii) an amount that, if used as
the numerator of the Fixed Investor Percentage for the remainder of the
Controlled Accumulation Period, would assure that Available Investor Principal
Collections for this Series plus the product of the aggregate amount of the
Shared Principal Collections during each Due Period multiplied by a fraction the
numerator of which is the Invested Amount of this Series and the denominator of
which is the aggregate invested amount of all Series not scheduled to be in
their revolving period during such Due Period would equal at least 125% of the
applicable Controlled Deposit Amount for such Due Period for so long as the
Invested Amount is greater than zero, assuming for this purpose that (A) the
payment rate with respect to Collections of Principal Receivables remains
constant at the level of the immediately preceding Due Period, (B) the total
amount of Principal Receivables theretofore conveyed to and in the Trust (and
the Special Funding Amount) remains constant at the level existing on the date
of such reduction, (C) no amortization event with respect to any Series will
subsequently occur and (D) no additional Series (other than any Series being
issued on the date of such reduction) will be subsequently issued; and

          (c)  during any Early Amortization Period, the Invested Amount as of
the last day of the Revolving Period less the Principal Funding Account Balance
or, if less, the amount last determined pursuant to clause (b) above during the
Controlled Accumulation Period.

          "Series Portfolio Yield" shall mean, with respect to any Due Period,
           ----------------------
the annualized percentage equivalent of a fraction, (a) the numerator of which
is equal to the sum of (i) Reallocated Investor Finance Charge and
Administrative Collections with respect to such Due Period, plus (ii) any Excess
Finance Charge and Administrative Collections that are allocated to Series 2000-
[.] with respect to such Due Period, such sum to be calculated on a cash basis
after subtracting the Investor Defaulted Amount for such Due Period, and (b) the
denominator of which is the Note Principal Balance as of the last day of the
immediately preceding Due Period.

          "Servicing Fee Rate" shall mean 2% per annum or such lesser percentage
           ------------------
as may be specified by the Servicer in an Officer's Certificate filed with the
Trustee, which Officer's Certificate shall state that, in the reasonable belief
of the Servicer, such change in percentage will not result in an Adverse Effect.

          "Spread Account" shall have the meaning specified in subsection
           --------------
4.12(a).

          "Spread Account Deficiency" shall mean the excess, if any, of the
           -------------------------
Required Spread Account Amount over the Available Spread Account Amount.

          "Spread Account Percentage" shall mean, (a) zero if the Quarterly
           -------------------------
Excess Spread Percentage on such Distribution Date is greater than or equal to
[.]%, (b) [.]% if the Quarterly Excess Spread Percentage on such Distribution
Date is less than [.]% and greater than or equal to [.]%, (c) [.]% if the
Quarterly Excess Spread Percentage on such Distribution Date is less than [.]%
and greater than or equal to [.]%, (d) [.]% if the Quarterly Excess Spread
Percentage on such Distribution Date is less than [.]% and greater than or equal
to [.]%, and (e) [.]% if the Quarterly Excess Spread Percentage on such
Distribution Date is less than [.]%, provided, that if an Amortization Event
with respect to Series 2000-[.] has occurred, the Spread Account Percentage
shall be [.]%.

          "Subordinated Principal Collections" shall mean with respect to any
           ----------------------------------
Due Period, Available Investor Principal Collections applied in accordance with
Section 4.06 in an amount not to exceed the lesser of the Monthly Subordination
Amount for the related Due Period and the Invested Amount after giving effect to
any Investor Charge-Offs for the related Distribution Date.

                                      14
<PAGE>

          "Telerate Page 3750" shall mean the display page currently so
           ------------------
designated on the Bridge Telerate Capital Markets Report (or such other page as
may replace that page in that service for the purpose of displaying comparable
rates or prices).

          Each capitalized term defined herein shall relate to the Series 2000-
[.] Notes and no other Series of Notes issued by the Trust, unless the context
otherwise requires. All capitalized terms used herein and not otherwise defined
herein have the meanings ascribed to them in the Indenture or the Transfer and
Servicing Agreement. In the event that any term or provision contained herein
shall conflict with or be inconsistent with any term or provision contained in
the Indenture or Transfer and Servicing Agreement, the terms and provisions of
this Indenture Supplement shall govern.

          The words "hereof," "herein" and "hereunder" and words of similar
                     ------    ------       ---------
import when used in this Indenture Supplement shall refer to this Indenture
Supplement as a whole and not to any particular provision of this Indenture
Supplement; references to any Article, subsection, Section or Exhibit are
references to Articles, subsections, Sections and Exhibits in or to this
Indenture Supplement unless otherwise specified; and the term "including" means
                                                               ---------
"including without limitation."
-----------------------------

                              [END OF ARTICLE II]

                                      15
<PAGE>

                                  ARTICLE III

                         Servicing Fee and Interchange

     Section 3.01.  Servicing Compensation; Interchange.
                    -----------------------------------

          (a)  Servicing Fee. The share of the Servicing Fee allocable to the
               -------------
Series 2000-[.] Noteholders with respect to any Distribution Date shall equal
the Monthly Servicing Fee. The portion of the Servicing Fee that is not
allocable to the Series 2000-[.] Noteholders shall be paid by the holders of the
Transferor Certificates or the noteholders of other Series (as provided in the
related Indenture Supplements) and in no event shall the Trust, the Indenture
Trustee or the Series 2000-[.] Noteholders be liable for the share of the
Servicing Fee to be paid by the holders of the Transferor Certificates or the
noteholders of any other Series.

          (b)  Interchange. Not later than 1:00 p.m., New York City time, on
               -----------
each Transfer Date, the Transferor shall notify the Servicer of the amount of
Interchange to be included as Collections of Finance Charge and Administrative
Receivables and allocable to Series 2000-[.] with respect to the preceding Due
Period as determined pursuant to this subsection 3.01(b). Such amount of
Interchange shall be equal to the product of (i) the amount of Interchange
attributable to the Accounts, as determined by the Bank pursuant to the
Receivables Purchase Agreement, and (ii) the Investor Percentage with regard to
Finance Charge and Administrative Receivables. On each Distribution Date, the
Transferor shall cause to be deposited into the Collection Account, in
immediately available funds, the amount of Interchange to be so included as
Collections of Finance Charge and Administrative Receivables allocable to Series
2000-[.] with respect to the preceding Due Period and such Interchange shall be
treated as a portion of Collections of Finance Charge and Administrative
Receivables allocable to Series 2000-[.] for all purposes of this Indenture
Supplement, the Indenture and the Transfer and Servicing Agreement.
Notwithstanding the above, if the Transferor shall have delivered to the
Indenture Trustee an Officer's Certificate stating that the Transferor
reasonably believes that such action will not have an adverse effect, the
Transferor may, in lieu of causing the deposit of Interchange into the
Collection Account as set forth above, designate Discount Option Collections
pursuant to Section 2.12 of the Transfer and Servicing Agreement in an amount
approximately equal to the then current Interchange with respect to the
Accounts.

                             [END OF ARTICLE III]

                                      16
<PAGE>

                                   ARTICLE IV

                     Rights of Series 2000-[.] Noteholders
                 and Allocation and Application of Collections

     Section 4.01.  Collections and Allocations.
                    ---------------------------

          (a)   Allocations. Collections of Finance Charge and
                -----------
Administrative Receivables and Principal Receivables and Defaulted Receivables
allocated to Series 2000-[.] pursuant to Article VIII of the Indenture (and, as
described herein, Collections of Finance Charge and Administrative Receivables
reallocated from other Series in Reallocation Group One) shall be allocated and
distributed as set forth in this Article.

          (b)   Payments to the Transferor. The Servicer shall on Deposit
                --------------------------
Dates withdraw from the Collection Account and, after giving effect to the
deposit into the Special Funding Account, pay to the Owner Trustee for
distribution in accordance with the Trust Agreement the following amounts:

                (i)  an amount equal to the Transferor Percentage for the
     related Due Period of Collections of Finance Charge and Administrative
     Receivables allocable to Series 2000-[.] to the extent such amount is
     deposited in the Collection Account; and

                (ii) an amount equal to the Transferor Percentage for the
     related Due Period of Collections of Principal Receivables allocable to
     Series 2000-[.] deposited in the Collection Account, if the Transferor
     Amount (determined after giving effect to any Principal Receivables
     transferred to the Trust on such Deposit Date) exceeds zero.

                The withdrawals to be made from the Collection Account pursuant
to this subsection 4.01(b) do not apply to deposits into the Collection Account
that do not represent Collections, including payment of the purchase price for
the Noteholders' Collateral pursuant to Section 2.06 or 7.01 of the Transfer and
Servicing Agreement or Section 11.04 of the Indenture and payment of the
purchase price for the Series 2000-[.] Noteholders' Collateral pursuant to
Section 7.01 of this Indenture Supplement.

          (c)   Allocations to the Series 2000-[.] Noteholders. The Servicer
                ----------------------------------------------
shall, prior to the close of business on any Deposit Date, allocate to the
Series 2000-[.] Noteholders the following amounts as set forth below:

                (i)  Allocations of Finance Charge Collections. The Servicer
                     -----------------------------------------
     shall allocate to the Series 2000-[.] Noteholders and retain in the
     Collection Account for application as provided herein an amount equal to
     the product of (A) the Investor Percentage and (B) the aggregate amount of
     Collections of Finance Charge and Administrative Receivables deposited in
     the Collection Account on such Deposit Date.

                (ii) Allocations of Principal Collections. The Servicer shall
                     ------------------------------------
     allocate to the Series 2000-[.] Noteholders the following amounts as set
     forth below:

                (A)  Allocations During the Revolving Period. During the
                     ---------------------------------------
          Revolving Period an amount equal to the product of (I) the Investor
          Percentage and (II) the aggregate amount of Collections of Principal
          Receivables deposited in the Collection Account on

                                      17
<PAGE>

          such Deposit Date, shall be allocated to the Series 2000-[.]
          Noteholders and retained in the Collection Account until applied as
          provided herein.

               (B)  Allocations During the Controlled Accumulation Period.
                    -----------------------------------------------------
          During the Controlled Accumulation Period an amount equal to the
          product of (I) the Investor Percentage and (II) the aggregate amount
          of Collections of Principal Receivables deposited in the Collection
          Account on such Deposit Date (the product for any such date is
          hereinafter referred to as a "Percentage Allocation") shall be
                                        ---------------------
          allocated to the Series 2000-[.] Noteholders and deposited in the
          Principal Funding Account until applied as provided herein; provided,
          however, that if the sum of such Percentage Allocation and all
          preceding Percentage Allocations with respect to the same Due Period
          exceeds the Controlled Deposit Amount for the related Distribution
          Date, then such excess shall not be treated as a Percentage Allocation
          and shall be first, if any other Principal Sharing Series in Principal
          Sharing Group One is outstanding and in its amortization period or
          accumulation period, retained in the Collection Account for
          application, to the extent necessary, as Shared Principal Collections
          to other Series in Principal Sharing Group One on the related
          Distribution Date, and second paid to the Owner Trustee for
          distribution the holders of the Transferor Certificates in accordance
          with the Trust Agreement only if the Transferor Amount on such Deposit
          Date is greater than the Required Transferor Amount (after giving
          effect to all Principal Receivables transferred to the Trust on such
          day) and otherwise shall be deposited in the Special Funding Account
          for Pool One.

               (C)  Allocations During the Early Amortization Period. During the
                    ------------------------------------------------
          Early Amortization Period, an amount equal to the product of (I) the
          Investor Percentage and (II) the aggregate amount of Collections of
          Principal Receivables deposited in the Collection Account on such
          Deposit Date, shall be allocated to the Series 2000-[.] Noteholders
          and retained in the Collection Account until applied as provided
          herein; provided, however, that after the date on which an amount of
          such Collections equal to the Note Principal Balance has been
          deposited into the Collection Account and allocated to the Series 200
          0-[.] Noteholders, the excess over such amount shall be first, if any
          other Principal Sharing Series in Principal Sharing Group One is
          outstanding and in its amortization period or accumulation period,
          retained in the Collection Account for application, to the extent
          necessary, as Shared Principal Collections on the related Distribution
          Date, and second paid to the Owner Trustee for distribution the
          holders of the Transferor Certificates in accordance with the Trust
          Agreement only if the Transferor Amount on such date is greater than
          the Required Transferor Amount (after giving effect to all Principal
          Receivables transferred to the Trust on such day) and otherwise shall
          be deposited in the Special Funding Account for Pool One.

     Section 4.02.   Determination of Monthly Interest.
                     ---------------------------------

          (a)  The amount of monthly interest ("Class A Monthly Interest")
                                                ------------------------
distributable from the Collection Account with respect to the Class A Notes on
any Distribution Date shall be an amount equal to the product of (i) (A) a
fraction, the numerator of which is the actual number of days in the related
Interest Period and the denominator of which is 360, times (B) the Class A Note
Interest Rate in effect with respect to the related Interest Period and (ii) the
Class A Note Principal Balance as of the close of business on the last day of
the preceding Due Period.

          On the Determination Date preceding each Distribution Date, the
Servicer shall determine the excess, if any (the "Class A Interest Shortfall"),
                                                  --------------------------
of (x) the Class A Monthly Interest for such Distribution Date over (y) the
aggregate amount of funds allocated and available to pay such Class A

                                      18
<PAGE>

Monthly Interest on such Distribution Date. If the Class A Interest Shortfall
with respect to any Distribution Date is greater than zero, on each subsequent
Distribution Date until such Class A Interest Shortfall is fully paid, an
additional amount ("Class A Additional Interest") equal to the product of (i)
                    ---------------------------
(A) a fraction, the numerator of which is the actual number of days in the
related Interest Period and the denominator of which is 360, times (B) the Class
A Note Interest Rate and (ii) such Class A Interest Shortfall (or the portion
thereof which has not been paid to the Class A Noteholders) shall be payable as
provided herein with respect to the Class A Notes. Notwithstanding anything to
the contrary herein, Class A Additional Interest shall be payable or distributed
to the Class A Noteholders only to the extent permitted by applicable law.

          (b)   The amount of monthly interest ("Class B Monthly Interest")
                                                 ------------------------
distributable from the Collection Account with respect to the Class B Notes on
any Distribution Date shall be an amount equal to the product of (i) (A) a
fraction, the numerator of which is the actual number of days in the related
Interest Period and the denominator of which is 360, times (B) the Class B Note
Interest Rate in effect with respect to the related Interest Period and (ii) the
Class B Note Principal Balance as of the close of business on the last day of
the preceding Due Period.

          On the Determination Date preceding each Distribution Date, the
Servicer shall determine the excess, if any (the "Class B Interest Shortfall"),
                                                  --------------------------
of (x) the Class B Monthly Interest for such Distribution Date over (y) the
aggregate amount of funds allocated and available to pay such Class B Monthly
Interest on such Distribution Date. If the Class B Interest Shortfall with
respect to any Distribution Date is greater than zero, on each subsequent
Distribution Date until such Class B Interest Shortfall is fully paid, an
additional amount ("Class B Additional Interest") equal to the product of (i)
                    ---------------------------
(A) a fraction, the numerator of which is the actual number of days in the
period from (and including) the immediately preceding Distribution Date to (but
excluding) such Distribution Date and the denominator of which is 360, times (B)
the Class B Note Interest Rate and (ii) such Class B Interest Shortfall (or the
portion thereof which has not been paid to the Class B Noteholders) shall be
payable as provided herein with respect to the Class B Notes. Notwithstanding
anything to the contrary herein, Class B Additional Interest shall be payable or
distributed to the Class B Noteholders only to the extent permitted by
applicable law.

          (c)  The amount of monthly interest ("Class C Monthly Interest")
                                                ------------------------
distributable from the Collection Account with respect to the Class C Notes on
any Distribution Date shall be an amount equal to the product of (i) (A) a
fraction, the numerator of which is the actual number of days in the related
Interest Period and the denominator of which is 360, times (B) the Class C Note
Interest Rate in effect with respect to the related Interest Period and (ii) the
Class C Note Principal Balance as of the close of business on the last day of
the preceding Due Period.

          On the Determination Date preceding each Distribution Date, the
Servicer shall determine an amount (the "Class C Interest Shortfall") equal to
                                         --------------------------
(x) the Class C Monthly Interest for such Distribution Date minus (y) the
aggregate amount of funds allocated and available to pay such Class C Monthly
Interest on such Distribution Date. If the Class C Interest Shortfall with
respect to any Distribution Date is greater than zero, on each subsequent
Distribution Date until such Class C Interest Shortfall is fully paid, an
additional amount ("Class C Additional Interest") shall be payable as provided
                    ---------------------------
herein with respect to the Class C Notes equal to the product of (i) (A) a
fraction, the numerator of which is the actual number of days in the period from
(and including) the immediately preceding Distribution Date to (but excluding)
such Distribution Date and the denominator of which is 360, times (B) the Class
C Note Interest Rate, and (ii) such Class C Interest Shortfall (or the portion
thereof which has not been paid to the Class C Noteholders (after giving effect
to the application of the proceeds of any draw made on the Spread Account as
provided in subsection 4.04(a)(vi) and Section 4.12(c) for the purpose of paying
such amount with respect to such Distribution Date)). Notwithstanding anything
to the contrary herein,

                                      19
<PAGE>

Class C Additional Interest shall be payable or distributed to the Class C
Noteholders only to the extent permitted by applicable law.

     Section 4.03.  Determination of Monthly Principal.
                    ----------------------------------

     The amount of monthly principal distributable from the Collection Account
with respect to the Notes on each Distribution Date (the "Monthly Principal"),
                                                          -----------------
beginning with the Distribution Date in the month following the month in which
the Controlled Accumulation Period or, if earlier, the Early Amortization
Period, begins, shall be equal to the least of (i) the Available Investor
Principal Collections on deposit in the Collection Account with respect to such
Distribution Date, (ii) for each Distribution Date with respect to the
Controlled Accumulation Period, the Controlled Deposit Amount for such
Distribution Date and (iii) the Adjusted Invested Amount (after taking into
account any adjustments to be made on such Distribution Date pursuant to
Sections 4.05 and 4.06).

     Section 4.04.  Application of Available Funds on Deposit in the Collection
                    -----------------------------------------------------------
Account. The Servicer shall apply, or shall cause the Indenture Trustee to apply
-------
by written instruction to the Indenture Trustee, on each Distribution Date,
Reallocated Investor Finance Charge and Administrative Collections, Excess
Finance Charge and Administrative Collections allocable to Series 2000-[.] in
accordance with Section 4.07 and Available Investor Principal Collections on
deposit in the Collection Account with respect to such Distribution Date to make
the following distributions:

          (a)  On each Distribution Date, an amount equal to the sum of (x)
Reallocated Investor Finance Charge and Administrative Collections and (y)
Excess Finance Charge and Administrative Collections allocable to Series 2000-
[.] in accordance with Section 4.07, with respect to such Distribution Date will
be distributed or deposited in the following priority:

                    (i)   an amount equal to Class A Monthly Interest for such
     Distribution Date, plus the amount of any Class A Monthly Interest
     previously due but not distributed to Class A Noteholders on a prior
     Distribution Date, plus the amount of any Class A Additional Interest for
     such Distribution Date plus the amount of any Class A Additional Interest
     previously due but not distributed to Class A Noteholders on a prior
     Distribution Date, shall be distributed to the Paying Agent for payment to
     Class A Noteholders on such Distribution Date;

                    (ii)  an amount equal to Class B Monthly Interest for such
     Distribution Date, plus the amount of any Class B Monthly Interest
     previously due but not distributed to Class B Noteholders on a prior
     Distribution Date, plus the amount of any Class B Additional Interest for
     such Distribution Date plus the amount of any Class B Additional Interest
     previously due but not distributed to Class B Noteholders on a prior
     Distribution Date, shall be distributed to the Paying Agent for payment to
     Class B Noteholders on the applicable Distribution Date;

                    (iii) (A) if HFC or an Affiliate of HFC is no longer the
     Servicer, an amount equal to the Monthly Servicing Fee for such
     Distribution Date, plus the amount of any Monthly Servicing Fee previously
     due but not distributed to such Servicer on a prior Distribution Date,
     shall be distributed to such Servicer (unless such amount has been netted
     against deposits to the Collection Account in accordance with Section 8.04
     of the Indenture) and (B) if HFC or an Affiliate of HFC is no longer the
     Administrator, an amount equal to the Monthly Administration Fee for such
     Distribution Date, plus the amount of any Monthly Administration Fee
     previously due but not distributed to such Administrator on a prior
     Distribution Date, shall be distributed to such Administrator (unless such
     amount has been netted against deposits to the Collection Account in
     accordance with Section 8.04 of the Indenture);

                                      20
<PAGE>

               (iv)   an amount equal to Class C Monthly Interest for such
     Distribution Date, plus the amount of any Class C Monthly Interest
     previously due but not distributed to the Class C Noteholders on a prior
     Distribution Date, plus the amount of any Class C Additional Interest for
     such Distribution Date and any Class C Additional Interest previously due
     but not distributed to the Class C Noteholders on a prior Distribution Date
     shall be distributed to the Paying Agent for payment to the Class C
     Noteholders on such Distribution Date; provided, however, that, in the
     event that Class C Monthly Interest exceeds the amount of Reallocated
     Investor Finance Charge and Administrative Collections and Excess Finance
     Charge and Administrative Collections available (after giving effect to
     subsections 4.04(a)(i) through (iii) above) to fund such Class C Monthly
     Interest, a draw will be made from amounts available for distribution in
     the Spread Account (at the times and in the amounts specified in Section
     4.12) and shall be distributed to the Paying Agent for payment to the Class
     C Noteholders on such Distribution Date in accordance with this subsection
     4.04(a)(iv);

               (v)    an amount equal to the Investor Defaulted Amount for such
     Distribution Date shall be treated as a portion of Available Investor
     Principal Collections for such Distribution Date;

               (vi)   an amount equal to the sum of the aggregate amount of
     Investor Charge-Offs and the amount of Subordinated Principal Collections
     which have not been previously reimbursed shall be treated as a portion of
     Available Investor Principal Collections for such Distribution Date;

               (vii)  if HFC or an Affiliate of HFC is the Servicer, an amount
     equal to the Monthly Servicing Fee for such Distribution Date that has not
     been paid to the Servicer and any Monthly Servicing Fee due but not paid to
     the Servicer on a prior Distribution Date shall be paid to the Servicer;

               (viii) if HFC or an Affiliate of HFC is the Administrator, an
     amount equal to the Monthly Administration Fee for such Distribution Date
     and any Monthly Administration Fee due but not paid to the Administrator on
     a prior Distribution Date shall be paid to the Administrator;

               (ix)   on each Distribution Date from and after the Reserve
     Account Funding Date, but prior to the date on which the Reserve Account
     terminates as described in Section 4.11(f), an amount equal to the excess,
     if any, of the Required Reserve Account Amount over the Available Reserve
     Account Amount shall be deposited into the Reserve Account;

               (x)    (a) prior to the occurrence of an Event of Default with
     respect to Series 2000-[.] and acceleration of the maturity of the Series
     2000-[.] Notes pursuant to Section 5.03 of the Indenture, an amount equal
     to the amounts required to be deposited in the Spread Account pursuant to
     Section 4.12 shall be deposited into the Spread Account as provided in
     Section 4.12; and (b) upon the occurrence of an Event of Default with
     respect to Series 2000-[.] and acceleration of the maturity of the Series
     2000-[.] Notes pursuant to Section 5.03 of the Indenture the balance, if
     any, up to the outstanding Note Principal Balance shall be treated as a
     portion of Available Investor Principal Collections for such Distribution
     Date for distribution to the Series 2000-[.] Noteholders; and

               (xi)   the balance, if any, will constitute a portion of Excess
     Finance Charge and Administrative Collections for such Distribution Date
     and will be available for allocation to other Series in Excess Finance
     Charge Sharing Group One or to the Owner Trustee for

                                      21
<PAGE>

     distribution in accordance with the Trust Agreement, as set forth in
     Section 8.08C of the Indenture.

          (b)  On each Distribution Date with respect to the Revolving Period,
an amount equal to the Available Investor Principal Collections deposited in the
Collection Account for the related Due Period shall be treated as Shared
Principal Collections with respect to Principal Sharing Group One and applied in
accordance with Section 8.05 of the Indenture.

          (c)  On each Distribution Date with respect to the Controlled
Accumulation Period or the Early Amortization Period, an amount equal to the
Available Investor Principal Collections deposited in the Collection Account for
the related Due Period shall be distributed or deposited in the following order
of priority:

               (i)   during the Controlled Accumulation Period and prior to the
     payment in full of the Class A Notes, the Class B Notes and the Class C
     Notes, an amount equal to the Monthly Principal for such Distribution Date
     shall be deposited into the Principal Funding Account;

               (ii)  during the Early Amortization Period, an amount equal to
     the Monthly Principal for such Distribution Date shall be distributed to
     the Paying Agent for payment to the Class A Noteholders on such
     Distribution Date and on each subsequent Distribution Date until the Class
     A Note Principal Balance has been paid in full;

               (iii) after giving effect to the distribution referred to in
     clause (ii) above, during the Early Amortization Period, an amount equal to
     the Monthly Principal remaining, if any, shall be distributed to the Paying
     Agent for payment to the Class B Noteholders on such Distribution Date and
     on each subsequent Distribution Date until the Class B Note Principal
     Balance has been paid in full;

               (iv)  after giving effect to the distributions referred to in
     clauses (ii) and (iii) above, during the Early Amortization Period, an
     amount equal to the Monthly Principal remaining, if any, shall be
     distributed to the Paying Agent for payment to the Class C Noteholders on
     such Distribution Date and on each subsequent Distribution Date until the
     Class C Note Principal Balance has been paid in full;

               (v)   the balance of such Available Investor Principal
     Collections shall be treated as Shared Principal Collections with respect
     to Principal Sharing Group One and applied in accordance with Section 8.05
     of the Indenture.

          (d)  On the earlier to occur of (i) the first Distribution Date with
respect to the Early Amortization Period and (ii) the Expected Principal Payment
Date, the Indenture Trustee, acting in accordance with instructions from the
Servicer, shall withdraw from the Principal Funding Account and distribute to
the Paying Agent for payment first, to the Class A Noteholders up to the Class A
Note Principal Balance, second, to the Class B Noteholders up to the Class B
Note Principal Balance, and third, to the Class C Noteholders up to the Class C
Note Principal Balance, the amounts deposited into the Principal Funding Account
pursuant to subsection 4.04(c)(i).

          (e)  The Controlled Accumulation Period is scheduled to commence at
the close of business on [.], 20[.]; provided, however, that, if the
Accumulation Period Length (determined as described below) is less than 12 Due
Periods, the date on which the Controlled Accumulation Period actually commences
will be delayed to the first Business Day of the Due Period that is the number
of
                                   22
<PAGE>

whole Due Periods prior to the Expected Principal Payment Date at least equal to
the Accumulation Period Length and, as a result, the number of Due Periods in
the Controlled Accumulation Period will at least equal the Accumulation Period
Length. On the Determination Date immediately preceding the [.] Distribution
Date, and each Determination Date thereafter until the Controlled Accumulation
Period begins, the Servicer will determine the "Accumulation Period Length"
                                                --------------------------
which will equal the number of whole Due Periods such that the sum of the
Accumulation Period Factors for each Due Period during such period will be equal
to or greater than the Required Accumulation Factor Number; provided, however,
that the Accumulation Period Length will not be determined to be less than one
Due Period; provided further, however, that the determination of the
Accumulation Period Length may be changed at any time if the Rating Agency
Condition is satisfied.

     Section 4.05   Investor Charge-Offs. On each Determination Date, the
                    --------------------
Servicer shall calculate the Investor Defaulted Amount, if any, for the related
Distribution Date. If, on any Distribution Date, the Investor Defaulted Amount
for the related Due Period exceeds the amount available therefor pursuant to
Section 4.04(a)(v) with respect to such Due Period, the Invested Amount will be
reduced by the amount of such excess, but not by more than the Investor
Defaulted Amount for such Distribution Date (such reduction, an "Investor Charge
                                                                 ---------------
Off").
---
     Section 4.06.  Subordinated Principal Collections. On each Distribution
                    ----------------------------------
Date, the Servicer shall apply, or shall cause the Indenture Trustee to withdraw
from the Principal Account and apply, Subordinated Principal Collections with
respect to such Distribution Date, in an amount equal to the lesser of the
Available Investor Principal Collections and the Monthly Subordination Amount
for the preceding Due Period, and apply such amounts on such Distribution Date
in accordance with the priority set forth in clauses (i) through (iii) of
Section 4.04(a). On each Distribution Date, the Invested Amount shall be reduced
by the amount of Subordinated Principal Collections for such Distribution Date.

     Section 4.07.  Excess Finance Charge and Administrative Collections.
                    ----------------------------------------------------
Subject to Section 8.08C of the Indenture, Excess Finance Charge and
Administrative Collections with respect to the Excess Finance Charge Sharing
Series in Excess Finance Charge Sharing Group One for any Distribution Date will
be allocated to Series 2000-[.] in an amount equal to the product of (x) the
aggregate amount of Excess Finance Charge and Administrative Collections with
respect to all the Excess Finance Charge Sharing Series in Excess Finance Charge
Sharing Group One for such Distribution Date and (y) a fraction, the numerator
of which is the Finance Charge Shortfall for Series 2000-[.] for such
Distribution Date and the denominator of which is the aggregate amount of
Finance Charge Shortfalls for all the Excess Finance Charge Sharing Series in
Excess Finance Charge Sharing Group One for such Distribution Date. The "Finance
                                                                         -------
Charge Shortfall" for Series 2000-[.] for any Distribution Date will be equal to
----------------
the excess, if any, of (a) the full amount required to be paid, without
duplication, pursuant to subsections 4.04(a)(i) through (ix) on such
Distribution Date over (b) the Reallocated Finance Charge and Administrative
Collections with respect to such Distribution Date.

     Section 4.08.  Shared Principal Collections.
                    ----------------------------

          Subject to Section 8.05 of the Indenture, Shared Principal Collections
with respect to the Series in Principal Sharing Group One for any Distribution
Date will be allocated to Series 2000-[.] in an amount equal to the product of
(i) the aggregate amount of Shared Principal Collections with respect to all
Principal Sharing Series in Principal Sharing Group One for such Distribution
Date and (ii) a fraction, the numerator of which is the Series 2000-[.]
Principal Shortfall for such Distribution Date and the denominator of which is
the aggregate amount of Principal Shortfalls for all the Series which are
Principal Sharing Series in Principal Sharing Group One for such Distribution
Date. The "Series 2000-[.] Principal Shortfall" will be equal to (i) for any
           -----------------------------------
Distribution Date with respect to the Revolving Period, zero, (ii) for any
Distribution Date with respect to the Controlled Accumulation Period, the
excess, if any,

                                      23
<PAGE>

of the Controlled Deposit Amount with respect to such Distribution Date over the
amount of Available Investor Principal Collections for such Distribution Date
(excluding any portion thereof attributable to Shared Principal Collections),
and (iii) for any Distribution Date with respect to the Early Amortization
Period, the excess, if any, of the Invested Amount over the amount of Available
Investor Principal Collections for such Distribution Date (excluding any portion
thereof attributable to Shared Principal Collections).

     Section 4.09.  Reallocated Investor Finance Charge and Administrative
                    ------------------------------------------------------
Collections. (a) That portion of Reallocation Group One Investor Finance Charge
-----------
and Administrative Collections for any Distribution Date equal to the amount of
Reallocated Investor Finance Charge and Administrative Collections for such
Distribution Date will be allocated to Series 2000-[.] and will be distributed
as set forth in this Series Supplement.

             (b)    Reallocated Investor Finance Charge and Administrative
Collections, with respect to any Distribution Date shall equal the sum of (i)
the aggregate amounts payable under Sections 4.04(a)(i) through (ix) and (ii)
that portion of excess Reallocation Group One Investor Finance Charge and
Administrative Collections to be included in Reallocated Investor Finance Charge
and Administrative Collections pursuant to subsection (c) hereof; provided,
however, that if the amount of Reallocation Group One Investor Finance Charge
and Administrative Collections for such Distribution Date is less than the sum
of (A) Reallocation Group One Monthly Interest, (B) Reallocation Group One
Investor Default Amount, (C) Reallocation Group One Monthly Fees, and (D)
Reallocation Group One Investor Additional Amounts, then Reallocated Investor
Finance Charge and Administrative Collections shall equal the sum of the
following amounts for such Distribution Date:

                    (1)  The product of (I) Reallocation Group One Investor
     Finance Charge and Administrative Collections (up to the amount of
     Reallocation Group One Monthly Interest) and (II) a fraction, the numerator
     of which is the sum of the amounts payable in Sections 4.04(a)(i), (ii) and
     (iv) and the denominator of which is Reallocation Group One Monthly
     Interest;

                    (2)  the product of (I) Reallocation Group One Investor
     Finance Charge and Administrative Collections less the amount of
     Reallocation Group One Monthly Interest (up to the Reallocation Group One
     Investor Default Amount) and (II) a fraction, the numerator of which is the
     Investor Defaulted Amount and the denominator of which is the Reallocation
     Group One Investor Default Amount;

                    (3)  the product of (I) Reallocation Group One Investor
     Finance Charge and Administrative Collections less the amount of
     Reallocation Group One Monthly Interest and the Reallocation Group One
     Investor Default Amount (up to Reallocation Group One Monthly Fees) and
     (II) a fraction, the numerator of which is the sum of the amounts payable
     in Section 4.04(a)(iii), (vi), (vii), (viii) and (ix) for Series 2000-[.]
     and the denominator of which is Reallocation Group One Monthly Fees; and

                    (4)  the product of (I) Reallocation Group One Investor
     Finance Charge and Administrative Collections less the amount of
     Reallocation Group One Monthly Interest, the Reallocation Group One
     Investor Default Amount, and the Reallocation Group One Investor Monthly
     Fees, and (II) a fraction, the numerator of which is Additional Amounts and
     the denominator of which is Reallocation Group One Investor Additional
     Amounts.

          (c)       If the amount of Reallocation Group One Investor Finance
Charge and Administrative Collections for such Distribution Date exceeds the sum
of (i) Reallocation Group One Monthly Interest, (ii) Reallocation Group One
Investor Default Amount, (iii) Reallocation Group One

                                      24
<PAGE>

Monthly Fees, and (iii) Reallocation Group One Investor Additional Amounts, then
Reallocated Investor Finance Charge and Administrative Collections for such
Distribution Date shall include an amount equal to the product of (A) the amount
of such excess and (B) a fraction, the numerator of which is the Adjusted
Invested Amount as of the last day of the second preceding Due Period and the
denominator of which is the sum of such Adjusted Invested Amount and the
aggregate invested amounts for all other Series included in Reallocation Group
One as of such last day.

     Section 4.10.  Principal Funding Account.
                    -------------------------

             (a)    The Indenture Trustee shall establish and maintain with an
Eligible Institution, which may be the Indenture Trustee, in the name of the
Trust, on behalf of the Trust, for the benefit of the Noteholders, a segregated
trust account with the corporate trust department of such Eligible Institution
(the "Principal Funding Account"), bearing a designation clearly indicating that
      -------------------------
the funds deposited therein are held for the benefit of the Noteholders. The
Indenture Trustee shall possess all right, title and interest in all funds on
deposit from time to time in the Principal Funding Account and in all proceeds
thereof. The Principal Funding Account shall be under the sole dominion and
control of the Indenture Trustee for the benefit of the Noteholders. If at any
time the institution holding the Principal Funding Account ceases to be an
Eligible Institution, the Transferor shall notify the Indenture Trustee, and the
Indenture Trustee upon being notified (or the Servicer on its behalf) shall,
within 10 Business Days, establish a new Principal Funding Account meeting the
conditions specified above with an Eligible Institution, and shall transfer any
cash or any investments to such new Principal Funding Account. The Indenture
Trustee, at the direction of the Servicer, shall (i) make withdrawals from the
Principal Funding Account from time to time, in the amounts and for the purposes
set forth in this Indenture Supplement, and (ii) on each Distribution Date (from
and after the commencement of the Controlled Accumulation Period) prior to the
termination of the Principal Funding Account, make deposits into the Principal
Funding Account in the amounts specified in, and otherwise in accordance with,
subsection 4.04(c)(i).

             (b)    Funds on deposit in the Principal Funding Account shall be
invested at the direction of the Servicer by the Indenture Trustee in Eligible
Investments. Funds on deposit in the Principal Funding Account on any
Distribution Date, after giving effect to any withdrawals from the Principal
Funding Account on such Distribution Date, shall be invested in such investments
that will mature so that such funds will be available for withdrawal on or prior
to the following Distribution Date. The Indenture Trustee shall:

                    (i)    hold each Eligible Investment that constitutes
     investment property through a securities intermediary, which securities
     intermediary shall agree with the Indenture Trustee that (A) such
     investment property shall at all times be credited to a securities account
     of the Indenture Trustee, (B) such securities intermediary shall comply
     with entitlement orders originated by the Indenture Trustee without the
     further consent of any other person or entity, (C) all property credited to
     such securities account shall be treated as a financial asset, (D) such
     securities intermediary shall waive any lien on, security interest in, or
     right of set-off with respect to any property credited to such securities
     account, and (E) such agreement shall be governed by the laws of the State
     of New York; and

                    (ii)   maintain possession of each other Eligible Investment
     not described in clause (i) above;

provided, that no Eligible Investment shall be disposed of prior to its maturity
date. Terms used in clause (i) above that are defined in the New York UCC and
not otherwise defined herein shall have the meaning set forth in the New York
UCC.

                                      25
<PAGE>

          On each Distribution Date with respect to the Controlled Accumulation
Period and on the first Distribution Date with respect to the Early Amortization
Period, the Indenture Trustee, acting at the Servicer's direction given on or
before such Distribution Date, shall transfer from the Principal Funding Account
to the Collection Account the Principal Funding Investment Proceeds on deposit
in the Principal Funding Account for application as Available Investor Finance
Charge and Administrative Collections for such Distribution Date.

          Principal Funding Investment Proceeds (including reinvested interest)
shall not be considered part of the amounts on deposit in the Principal Funding
Account for purposes of this Indenture Supplement.

     Section 4.11.  Reserve Account.
                    ---------------

          (a)       The Indenture Trustee shall establish and maintain with an
Eligible Institution, which may be the Indenture Trustee in the name of the
Trust, on behalf of the Trust, for the benefit of the Noteholders, a segregated
trust account with the corporate trust department of such Eligible Institution
(the "Reserve Account"), bearing a designation clearly indicating that the funds
      ---------------
deposited therein are held for the benefit of the Noteholders. The Indenture
Trustee shall possess all right, title and interest in all funds on deposit from
time to time in the Reserve Account and in all proceeds thereof. The Reserve
Account shall be under the sole dominion and control of the Indenture Trustee
for the benefit of the Noteholders. If at any time the institution holding the
Reserve Account ceases to be an Eligible Institution, the Transferor shall
notify the Indenture Trustee, and the Indenture Trustee upon being notified (or
the Servicer on its behalf) shall, within 10 Business Days (or such longer
period as the Rating Agency may consent), establish a new Reserve Account
meeting the conditions specified above with an Eligible Institution, and shall
transfer any cash or any investments to such new Reserve Account. The Indenture
Trustee, at the direction of the Servicer, shall (i) make withdrawals from the
Reserve Account from time to time in an amount up to the Available Reserve
Account Amount at such time, for the purposes set forth in this Indenture
Supplement, and (ii) on each Distribution Date (from and after the Reserve
Account Funding Date) prior to termination of the Reserve Account, make a
deposit into the Reserve Account in the amount specified in, and otherwise in
accordance with, subsection 4.04(a)(ix).

          (b)       Funds on deposit in the Reserve Account shall be invested at
the direction of the Servicer by the Indenture Trustee in Eligible Investments.
Funds on deposit in the Reserve Account on any Distribution Date, after giving
effect to any withdrawals from the Reserve Account on such Distribution Date,
shall be invested in such investments that will mature so that such funds will
be available for withdrawal on or prior to the following Distribution Date. The
Indenture Trustee shall:

                    (i)  hold each Eligible Investment that constitutes
     investment property through a securities intermediary, which securities
     intermediary shall agree with the Indenture Trustee that (A) such
     investment property shall at all times be credited to a securities account
     of the Indenture Trustee, (B) such securities intermediary shall comply
     with entitlement orders originated by the Indenture Trustee without the
     further consent of any other person or entity, (C) all property credited to
     such securities account shall be treated as a financial asset, (D) such
     securities intermediary shall waive any lien on, security interest in, or
     right of set-off with respect to any property credited to such securities
     account, and (E) such agreement shall be governed by the laws of the State
     of New York; and

                    (ii) maintain possession of each other Eligible Investment
     not described in clause (i) above;

provided, that no Eligible Investment shall be disposed of prior to its maturity
date.  Terms used in clause

                                      26
<PAGE>

(i) above that are defined in the New York UCC and not otherwise defined herein
shall have the meaning set forth in the New York UCC.

          On each Distribution Date, all interest and earnings (net of losses
and investment expenses) accrued since the preceding Distribution Date on funds
on deposit in the Reserve Account shall be retained in the Reserve Account (to
the extent that the Available Reserve Account Amount is less than the Required
Reserve Account Amount) and the balance, if any, shall be deposited into the
Collection Account and included in Available Investor Finance Charge and
Administrative Collections for such Distribution Date. For purposes of
determining the availability of funds or the balance in the Reserve Account for
any reason under this Indenture Supplement, except as otherwise provided in the
preceding sentence, investment earnings on such funds shall be deemed not to be
available or on deposit.

          (c)     On or before each Distribution Date with respect to the
Controlled Accumulation Period and on or before the first Distribution Date with
respect to the Early Amortization Period, the Servicer shall calculate the
Reserve Draw Amount; provided, however, that such amount will be reduced to the
extent that funds otherwise would be available for deposit in the Reserve
Account under Section 4.04(a)(ix) with respect to such Distribution Date.

          (d)     In the event that for any Distribution Date the Reserve Draw
Amount is greater than zero, the Reserve Draw Amount, up to the Available
Reserve Account Amount, shall be withdrawn from the Reserve Account on such
Distribution Date by the Indenture Trustee (acting in accordance with the
instructions of the Servicer) and deposited into the Collection Account for
application as Available Investor Finance Charge and Administrative Collections
for such Distribution Date.

          (e)     In the event that the Reserve Account Surplus on any
Distribution Date, after giving effect to all deposits to and withdrawals from
the Reserve Account with respect to such Distribution Date, is greater than
zero, the Indenture Trustee, acting in accordance with the instructions of the
Servicer, shall withdraw from the Reserve Account and pay to the Owner Trustee
for distribution in accordance with the Trust Agreement an amount equal to such
Reserve Account Surplus.

          (f)     Upon the earliest to occur of (i) the termination of the Trust
pursuant to Article VIII of the Trust Agreement, (ii) if the Controlled
Accumulation Period has not commenced, the first Distribution Date relating to
the Early Amortization Period and (iii) if the Controlled Accumulation Period
has commenced, the earlier of the first Distribution Date with respect to the
Early Amortization Period and the Expected Principal Payment Date, the Indenture
Trustee, acting in accordance with the instructions of the Servicer, after the
prior payment of all amounts owing to the Series 2000-[.] Noteholders that are
payable from the Reserve Account as provided herein, shall withdraw from the
Reserve Account and pay to the Owner Trustee for distribution in accordance with
the Trust Agreement all amounts, if any, on deposit in the Reserve Account and
the Reserve Account shall be deemed to have terminated for purposes of this
Indenture Supplement; provided, however, that following the occurrence of an
Event of Default with respect to Series 2000-[.] and acceleration of the
maturity of the Series 2000-[.] Notes pursuant to Section 5.03 of the Indenture,
the Servicer shall withdraw from the Reserve Account all amounts on deposit
therein and the Indenture Trustee or the Servicer shall deposit such amounts in
the Collection Account for distribution to the Noteholders in accordance with
Section 5.02 to fund any shortfalls in amounts owed to such Noteholders.

     Section 4.12.  Spread Account.
                    --------------

          (a)     The Indenture Trustee shall establish and maintain with an
Eligible Institution, which may be the Indenture Trustee in the name of the
Trust, on behalf of the Trust, for the benefit of the Class C Noteholders, a
segregated account with the corporate trust department of such Eligible
Institution

                                      27
<PAGE>

(the "Spread Account"), bearing a designation clearly indicating that the
      --------------
funds deposited therein are held for the benefit of the Class C Noteholders.
Except as otherwise provided in this Section 4.12, the Indenture Trustee shall
possess all right, title and interest in all funds on deposit from time to time
in the Spread Account and in all proceeds thereof. The Spread Account shall be
under the sole dominion and control of the Indenture Trustee for the benefit of
the Class C Noteholders. If at any time the institution holding the Spread
Account ceases to be an Eligible Institution, the Transferor shall notify the
Indenture Trustee, and the Indenture Trustee upon being notified (or the
Servicer on its behalf) shall, within 10 Business Days (or such longer period as
to which the Rating Agency may consent) establish a new Spread Account meeting
the conditions specified above with an Eligible Institution, and shall transfer
any cash or any investments to such new Spread Account. The Indenture Trustee,
at the direction of the Servicer, shall (i) make withdrawals from the Spread
Account from time to time in an amount up to the Available Spread Account Amount
at such time, for the purposes set forth in this Indenture Supplement, and (ii)
on each Distribution Date prior to termination of the Spread Account, make a
deposit into the Spread Account in the amount specified in, and otherwise in
accordance with, Section 4.04(a).

          (b)     Funds on deposit in the Spread Account shall be invested at
the direction of the Servicer by the Indenture Trustee in Eligible Investments;
provided, however, that, for purposes of the investment of funds on deposit in
the Spread Account, references in the definition of "Eligible Investments" to a
rating in the "highest rating category" shall be modified to require a rating,
from any one of the following Rating Agencies, of at least A-2 by Standard &
Poor's, P-2 by Moody's or (if such investment is rated by Fitch) F2 by Fitch.
Funds on deposit in the Spread Account on any Distribution Date, after giving
effect to any withdrawals from and deposits to the Spread Account on such
Distribution Date, shall be invested in such investments that will mature so
that such funds will be available for withdrawal on or prior to the following
Distribution Date. The Indenture Trustee shall:

                  (i)    hold each Eligible Investment that constitutes
     investment property through a securities intermediary, which securities
     intermediary shall agree with the Indenture Trustee that (A) such
     investment property shall at all times be credited to a securities account
     of the Indenture Trustee, (B) such securities intermediary shall comply
     with entitlement orders originated by the Indenture Trustee without the
     further consent of any other person or entity, (C) all property credited to
     such securities account shall be treated as a financial asset, (D) such
     securities intermediary shall waive any lien on, security interest in, or
     right of set-off with respect to any property credited to such securities
     account, and (E) such agreement shall be governed by the laws of the State
     of New York; and

                  (ii)   maintain possession of each other Eligible Investment
     not described in clause (i) above;

provided, that no Eligible Investment shall be disposed of prior to its maturity
date. Terms used in clause (i) above that are defined in the New York UCC and
not otherwise defined herein shall have the meaning set forth in the New York
UCC.

          On each Distribution Date (but subject to subsections 4.12(c), 4.12(d)
and 4.12(e)), the Investment Earnings, if any, accrued since the preceding
Distribution Date on funds on deposit in the Spread Account shall be paid by the
Indenture Trustee to the Owner Trustee for distribution to the holders of the
Transferor Certificates pursuant to the Trust Agreement. For purposes of
determining the availability of funds or the balance in the Spread Account for
any reason under this Indenture Supplement (subject to subsections 4.12(c),
4.12(d) and 4.12(e)), all Investment Earnings shall be deemed not to be
available or on deposit.

                                      28
<PAGE>

          (c)     If, on any Distribution Date, the aggregate amount available
for distribution pursuant to subsection 4.04(a)(iv) is less than the aggregate
amount required to be distributed pursuant to subsection 4.04(a)(iv), the
Indenture Trustee, at the direction of the Servicer, shall withdraw from the
Spread Account the amount of such deficiency up to the Available Spread Account
Amount and, if the Available Spread Account Amount is less than such deficiency,
Investment Earnings credited to the Spread Account, and deposit such amount in
the Collection Account for payment to the Class C Noteholders in respect of
interest on the Class C Notes.

          (d)     On the Series 2000-[.] Final Maturity Date, or on any earlier
Distribution Date on which the outstanding principal balance of the Class A
Notes and the Class B Notes is paid in full, the Indenture Trustee at the
direction of the Servicer shall withdraw from the Spread Account an amount equal
to the lesser of (i) the outstanding principal balance of the Class C Notes
(after any payments to be made on such date) and (ii) the Available Spread
Account Amount and, if the Available Spread Account Amount is less than the
amount of such excess, Investment Earnings credited to the Spread Account up to
the amount of such excess, and the Indenture Trustee or the Servicer shall
deposit such amounts into the Collection Account for distribution to the Class C
Noteholders in accordance with subsection 5.02(e).

          (e)     On any day following the occurrence of an Event of Default
with respect to Series 2000-[.] and acceleration of the maturity of the Series
2000-[.] Notes pursuant to Section 5.03 of the Indenture, the Servicer shall
withdraw from the Spread Account all amounts on deposit therein (including all
Investment Earnings, if any, on funds on deposit in the Spread Account) and the
Indenture Trustee or the Servicer shall deposit such amounts in the Collection
Account for distribution to the Class C Noteholders, the Class A Noteholders and
the Class B Noteholders, in that order of priority, in accordance with Section
5.02, to fund any shortfalls in amounts owed to such Noteholders.

          (f)     If on any Distribution Date, after giving effect to all
withdrawals from the Spread Account, the Available Spread Account Amount is less
than the Required Spread Account Amount then in effect, Reallocated Investor
Finance Charge and Administrative Collections and Excess Finance Charge and
Administrative Collections shall be deposited into the Spread Account under the
circumstances set forth in subsection 4.04(a)(x) up to the amount of the Spread
Account Deficiency.

          (g)     After the Spread Account Percentage has been increased above
zero pursuant to any of clauses (ii) through (v) of the definition thereof, the
Spread Account Percentage shall remain at that percentage until (a) further
increased to a higher required percentage specified in clauses (ii) through (v)
of the definition thereof or (b) the Distribution Date on which the Quarterly
Excess Spread Percentage has increased to a level above that for the then
current Spread Account Percentage, in which case the Spread Account Percentage
shall be decreased to the appropriate percentage in clauses (ii) through (iv) of
the definition thereof (or, if the Excess Spread Percentage is greater than or
equal to [.]%, the Spread Account Percentage shall be zero and the Required
Spread Account Amount shall be $0). Notwithstanding the foregoing, if an
Amortization Event with respect to Series 2000-[.] has occurred, the Spread
Account Percentage shall equal [.]% (as provided in the definition of Spread
Account Percentage) and shall no longer be subject to reduction.

          (h)     If on any Distribution Date, after giving effect to all
withdrawals from and deposits to the Spread Account, the amount on deposit in
the Spread Account would exceed the Required Spread Account Amount then in
effect, the Indenture Trustee shall, at the written direction of the Servicer,
release such excess to the Transferor. On the date on which the Class C Note
Principal Balance has been paid in full (including amounts to be paid to the
Class C Noteholders pursuant to subsection 4.12(d) above), the Indenture
Trustee, at the direction of the Servicer, shall withdraw from the Spread
Account all amounts then remaining in the Spread Account and pay such amounts to
the Owner Trustee for distribution to the holders of the Transferor Certificates
in accordance with the Trust Agreement.

                                      29
<PAGE>

     Section 4.13.  Determination of LIBOR.
                    ----------------------

          (a)     On each LIBOR Determination Date, the Indenture Trustee shall
determine LIBOR on the basis of the rate for deposits in United States dollars
for a one-month period which appears on Telerate Page 3750 as of 11:00 a.m.,
London time, on such date. If such rate does not appear on Telerate Page 3750,
the rate for that LIBOR Determination Date shall be determined on the basis of
the rates at which deposits in United States dollars are offered by the
Reference Banks at approximately 11:00 a.m., London time, on that day to prime
banks in the London interbank market for a one-month period. The Indenture
Trustee shall request the principal London office of each of the Reference Banks
to provide a quotation of its rate. If at least two such quotations are
provided, the rate for that LIBOR Determination Date shall be the arithmetic
mean of the quotations. If fewer than two quotations are provided as requested,
the rate for that LIBOR Determination Date will be the arithmetic mean of the
rates quoted by major banks in New York City, selected by the Servicer, at
approximately 11:00 a.m., New York City time, on that day for loans in United
States dollars to leading European banks for a one-month period.

          (b)     The Class A Note Interest Rate, Class B Note Interest Rate and
Class C Note Interest Rate applicable to the then current and the immediately
preceding Interest Periods may be obtained by telephoning the Indenture Trustee
at its corporate trust office at [.] or such other telephone number as shall be
designated by the Indenture Trustee for such purpose by prior written notice by
the Indenture Trustee to each Noteholder from time to time.

          (c)     On each LIBOR Determination Date, the Indenture Trustee shall
send to the Servicer and the Administrator by facsimile transmission,
notification of LIBOR for the following Interest Period.

     Section 4.14.  Investment Instructions.  Any investment instructions
                    -----------------------
required to be given to the Indenture Trustee pursuant to the terms hereof must
be given to the Indenture Trustee no later than 11:00 a.m. (New York City time)
on the date such investment is to be made. In the event the Indenture Trustee
receives such investment instruction later than such time, the Indenture Trustee
may, but shall have no obligation to, make such investment. In the event the
Indenture Trustee is unable to make an investment required in an investment
instruction received by the Indenture Trustee after [10:00] a.m. (New York City
time) on such day, such investment shall be made by the Indenture Trustee on the
next succeeding Business Day. In no event shall the Indenture Trustee be liable
for any investment not made pursuant to investment instructions received after
[10:00] a.m. (New York City time) on the day such investment is requested to be
made.

                              [END OF ARTICLE IV]

                                      30
<PAGE>

                                   ARTICLE V

                      Delivery of Series 2000-[.] Notes;
             Distributions; Reports to Series 2000-[.] Noteholders

     Section 5.01.  Delivery and Payment for the Series 2000-[.] Notes.
                    --------------------------------------------------

          The Indenture Trustee shall execute and authenticate the Series 2000-
[.] Notes in accordance with Section 2.03 of the Master Indenture. The Indenture
Trustee shall deliver the Series 2000-[.] Notes to or upon the order of the
Trust when so authenticated.

     Section 5.02.  Distributions.
                    -------------

          (a)       On each Distribution Date, the Paying Agent shall distribute
to each Class A Noteholder of record on the related Record Date (other than as
provided in Section 11.02 of the Indenture) such Class A Noteholder's pro rata
share of the amounts held by the Paying Agent that are allocated and available
on such Distribution Date to pay interest on the Class A Notes pursuant to this
Indenture Supplement.

          (b)       On each Distribution Date, the Paying Agent shall distribute
to each Class A Noteholder of record on the related Record Date such Class A
Noteholder's pro rata share of the amounts held by the Paying Agent that are
allocated and available on such Distribution Date to pay principal of the Class
A Notes pursuant to this Indenture Supplement.

          (c)       On each Distribution Date, the Paying Agent shall distribute
to each Class B Noteholder of record on the related Record Date (other than as
provided in Section 11.02 of the Indenture) such Class B Noteholder's pro rata
share of the amounts held by the Paying Agent that are allocated and available
on such Distribution Date to pay interest on the Class B Notes pursuant to this
Indenture Supplement.

          (d)       On each Distribution Date, the Paying Agent shall distribute
to each Class B Noteholder of record on the related Record Date such Class B
Noteholder's pro rata share of the amounts held by the Paying Agent that are
allocated and available on such Distribution Date to pay principal of the Class
B Notes pursuant to this Indenture Supplement.

          (e)       On each Distribution Date, the Paying Agent shall distribute
to each Class C Noteholder of record on the related Record Date (other than as
provided in Section 11.02 of the Indenture) such Class C Noteholder's pro rata
share of the amounts held by the Paying Agent (including amounts held by the
Paying Agent with respect to amounts withdrawn from the Spread Account (at the
times and in the amounts specified in Section 4.12)) that are allocated and
available on such Distribution Date to pay interest on the Class C Notes
pursuant to this Indenture Supplement.

          (f)       On each Distribution Date, the Paying Agent shall distribute
to each Class C Noteholder of record on the related Record Date such Class C
Noteholder's pro rata share of the amounts held by the Paying Agent that are
allocated and available on such Distribution Date to pay principal of the Class
C Notes pursuant to this Indenture Supplement.

                                      31
<PAGE>

          (g)     The distributions to be made pursuant to this Section 5.02 are
subject to the provisions of Sections 2.06, 6.01 and 7.01 of the Transfer and
Servicing Agreement, Section 11.02 of the Indenture and Section 7.01 of this
Indenture Supplement.

          (h)     Except as provided in Section 11.02 of the Indenture with
respect to a final distribution, distributions to Series 2000-[.] Noteholders
hereunder shall be made by (i) check mailed to each Series 2000-[.] Noteholder
(at such Noteholder's address as it appears in the Note Register), except that
with respect to any Series 2000-[.] Notes registered in the name of the nominee
of a Clearing Agency, such distribution shall be made in immediately available
funds and (ii) without presentation or surrender of any Series 2000-[.] Note or
the making of any notation thereon.

     Section 5.03.  Reports and Statements to Series 2000-[.] Noteholders.
                    -----------------------------------------------------

          (a)     On each Distribution Date, the Paying Agent, on behalf of the
Indenture Trustee, shall forward to each Series 2000-[.] Noteholder a statement
substantially in the form of Exhibit C prepared by the Servicer.
                             ---------

          (b)     Not later than the second Business Day preceding each
Distribution Date, the Servicer shall deliver to the Owner Trustee, the
Indenture Trustee, the Paying Agent and each Rating Agency (i) a statement
substantially in the form of Exhibit C prepared by the Servicer and (ii) a
                             ---------
certificate of an Authorized Officer substantially in the form of Exhibit D;
                                                                  ---------
provided that the Servicer may amend the form of Exhibit C and Exhibit D,
                                                 ---------     ---------
from time to time.

          (c)     A copy of each statement or certificate provided pursuant to
paragraph (a) or (b) may be obtained by any Series 2000-[.] Noteholder by a
request in writing to the Servicer.

          (d)     On or before January 31 of each calendar year, beginning with
calendar year 2001, the Paying Agent, on behalf of the Indenture Trustee, shall
furnish or cause to be furnished to each Person who at any time during the
preceding calendar year was a Series 2000-[.] Noteholder, a statement prepared
by the Servicer containing the information which is required to be contained in
the statement to Series 2000-[.] Noteholders, as set forth in paragraph (a)
above, aggregated for such calendar year together with other information as is
required to be provided by an issuer of indebtedness under the Code. Such
obligation of the Servicer shall be deemed to have been satisfied to the extent
that substantially comparable information shall be provided by the Paying Agent
pursuant to any requirements of the Code as from time to time in effect.

                              [END OF ARTICLE V]

                                      32
<PAGE>

                                  ARTICLE VI

                      Series 2000-[.] Amortization Events

     Section 6.01.  Series 2000-[.] Amortization Events.  If any one of the
                    -----------------------------------
following events shall occur with respect to the Series 2000-[.] Notes:

          (a)       failure on the part of the Transferor (i) to make any
payment or deposit required by the terms of the Transfer and Servicing
Agreement, the Indenture or this Indenture Supplement on or before the date
occurring five Business Days after the date such payment or deposit is required
to be made therein or herein or (ii) duly to observe or perform any other
covenants or agreements of the Transferor set forth in the Transfer and
Servicing Agreement, the Indenture or this Indenture Supplement, which failure
has an Adverse Effect on the Series 2000-[.] Noteholders and which continues
unremedied and continues to materially and adversely affect the interests of the
Noteholders for a period of 60 days after the date on which written notice of
such failure, requiring the same to be remedied, shall have been given to the
Transferor by the Indenture Trustee, or to the Transferor and the Indenture
Trustee by any Holder of the Series 2000-[.] Notes;

          (b)       any representation or warranty made by the Transferor in the
Transfer and Servicing Agreement, the Indenture or this Indenture Supplement, or
any information contained in a computer file or microfiche list required to be
delivered by the Transferor pursuant to Section 2.01 or subsection 2.09(h) of
the Transfer and Servicing Agreement shall prove to have been incorrect in any
material respect when made or when delivered, which continues to be incorrect in
any material respect for a period of 60 days after the date on which written
notice of such failure, requiring the same to be remedied, shall have been given
to the Transferor by the Indenture Trustee, or to the Transferor and the
Indenture Trustee by any Holder of the Series 2000-[.] Notes and as a result of
which the interests of the Series 2000-[.] Noteholders are materially and
adversely affected and continue to be materially and adversely affected for the
designated period; provided, however, that a Series 2000-[.] Amortization Event
Out Event pursuant to this subsection 6.01(b) shall not be deemed to have
occurred hereunder if the Transferor has accepted reassignment of the related
Receivable, or all of such Receivables, if applicable, during such period in
accordance with the provisions of the Transfer and Servicing Agreement;

          (c)       a failure by the Transferor to convey Receivables in
Additional Accounts or Participation Interests to the Trust within five Business
Days after the day on which it is required to convey such Receivables or
Participation Interests pursuant to subsection 2.09(a) of the Transfer and
Servicing Agreement;

          (d)       any Servicer Default shall occur which has an Adverse Effect
on the Series 2000-[.] Noteholders;

          (e)       the average Series Portfolio Yield for any three consecutive
Due Periods is reduced to a rate which is less than the average of the Base
Rates for such period;

          (f)       the Class A Note Principal Balance or the Class B Note
Principal Balance or the Class C Note Principal Balance shall not be paid in
full on the Expected Principal Payment Date; or

          (g)       without limiting the foregoing, the occurrence of an Event
of Default with respect to Series 2000--[.] and an acceleration of the maturity
of the Series 2000--[.] Notes pursuant to Section 5.03 of the Indenture; or

                                      33
<PAGE>

then, in the case of any event described in subparagraph (a), (b), (d) or (f)
after the applicable grace period, if any, set forth in such subparagraphs,
either the Indenture Trustee or the Holders of Series 2000-[.] Notes evidencing
more than 50% of the Outstanding Amount of Series 2000-[.] Notes by notice then
given in writing to the Transferor and the Servicer (and to the Indenture
Trustee if given by the Series 2000-[.] Noteholders) may declare that an
amortization event (a "Series 2000-[.] Amortization Event") has occurred as of
                       ----------------------------------
the date of such notice, and, in the case of any event described in subparagraph
(c), (e) or (g), a Series 2000-[.] Amortization Event shall occur without any
notice or other action on the part of the Indenture Trustee or the Series 2000-
[.] Noteholders immediately upon the occurrence of such event.

                              [END OF ARTICLE VI]

                                      34
<PAGE>

                                  ARTICLE VII

Redemption of Series 2000-[.] Notes; Series Final Maturity; Final Distributions

     Section 7.01.  Optional Redemption of Series 2000-[.] Notes.
                    --------------------------------------------

          (a)       On any day occurring on or after the date on which the sum
of the Class A Note Principal Balance, the Class B Note Principal Balance, and
any portion of the Class C Note Principal Balance that is not held by the
Transferor or an affiliate, is reduced to 10% or less of the sum of the Class A
Note Initial Principal Balance, the Class B Note Initial Principal Balance, and
any portion of the Class C Note Initial Principal Balance that is not held by
the Transferor or an affiliate, the Transferor shall have the option to redeem
the Series 2000-[.] Noteholders' Collateral, at a purchase price equal to (i) if
such day is a Distribution Date, the Reassignment Amount for such Distribution
Date or (ii) if such day is not a Distribution Date, the Reassignment Amount for
the Distribution Date following such day.

          (b)       The Transferor shall give the Servicer and the Indenture
Trustee at least 30 days prior written notice of the date on which the
Transferor intends to exercise such optional redemption. Not later than 12:00
noon, New York City time, on such day the Transferor shall deposit into the
Collection Account in immediately available funds the excess of the Reassignment
Amount over the amount, if any, on deposit in the Principal Funding Account.
Such redemption option is subject to payment in full of the Reassignment Amount.
Following such deposit into the Collection Amount in accordance with the
foregoing, the Invested Amount for Series 2000-[.] shall be reduced to zero and
the Series 2000-[.] Noteholders shall have no further interest in the
Receivables. The Reassignment Amount shall be distributed as set forth in
subsection [.].

     Section 7.02.  Series Final Maturity.
                    ---------------------

          (a)       The amount to be paid by the Transferor with respect to
Series 2000-[.] in connection with a reassignment of the Noteholders' Collateral
pursuant to Section 2.06 or Section 7.01 of the Transfer and Servicing Agreement
shall be the Reassignment Amount for the first Distribution Date following the
Due Period in which the reassignment obligation arises under the Transfer and
Servicing Agreement. With respect to the Reassignment Amount deposited into the
Collection Account pursuant to Section 7.01 or Section 2.06 of the Transfer and
Servicing Agreement or the proceeds from any Foreclosure Remedy pursuant to
Section 5.05 of the Indenture, the Indenture Trustee shall, in accordance with
the written direction of the Servicer, not later than 12:00 noon, New York City
time, on the related Distribution Date, make deposits or distributions of the
following amounts (in the priority set forth below and, in each case after
giving effect to any deposits and distributions otherwise to be made on such
date) in immediately available funds:

          (i)       (x) the Class A Note Principal Balance on such Distribution
     Date will be distributed to the Paying Agent for payment to the Class A
     Noteholders and (y) an amount equal to the sum of (A) Class A Monthly
     Interest for such Distribution Date, (B) any Class A Monthly Interest
     previously due but not distributed to the Class A Noteholders on a prior
     Distribution Date and (C) the amount of Class A Additional Interest, if
     any, for such Distribution Date and any Class A Additional Interest
     previously due but not distributed to the Class A Noteholders on any prior
     Distribution Date, will be distributed to the Paying Agent for payment to
     the Class A Noteholders;

                                      35
<PAGE>

          (ii)      (x) the Class B Note Principal Balance on such Distribution
     Date will be distributed to the Paying Agent for payment to the Class B
     Noteholders and (y) an amount equal to the sum of (A) Class B Monthly
     Interest for such Distribution Date, (B) any Class B Monthly Interest
     previously due but not distributed to the Class B Noteholders on a prior
     Distribution Date and (C) the amount of Class B Additional Interest, if
     any, for such Distribution Date and any Class B Additional Interest
     previously due but not distributed to the Class B Noteholders on any prior
     Distribution Date, will be distributed to the Paying Agent for payment to
     the Class B Noteholders; and

          (iii)     (x) the Class C Note Principal Balance on such Distribution
     Date will be distributed to the Paying Agent for payment to the Class C
     Noteholders and (y) an amount equal to the sum of (A) Class C Monthly
     Interest for such Distribution Date, (B) any Class C Monthly Interest
     previously due but not distributed to the Class C Noteholders on a prior
     Distribution Date and (C) the amount of Class C Additional Interest, if
     any, for such Distribution Date and any Class C Additional Interest
     previously due but not distributed to the Class C Noteholders on any prior
     Distribution Date, will be distributed to the Paying Agent for payment to
     the Class C Noteholders.

          (b)       Notwithstanding anything to the contrary in this Indenture
Supplement, the Indenture or the Transfer and Servicing Agreement, all amounts
distributed to the Paying Agent pursuant to subsection 7.02(d) for payment to
the Series 2000-[.] Noteholders shall be deemed distributed in full to the
Series 2000-[.] Noteholders on the date on which such funds are distributed to
the Paying Agent pursuant to this Section and shall be deemed to be a final
distribution pursuant to Section 11.02 of the Indenture.

                             [END OF ARTICLE VII]

                                      36
<PAGE>

                                 ARTICLE VIII

                            Miscellaneous Provision

     Section 8.01.  Ratification of Agreement.  As supplemented by this
                    -------------------------
Indenture Supplement, the Indenture is in all respects ratified and confirmed
and the Indenture as so supplemented by this Indenture Supplement shall be read,
taken and construed as one and the same instrument.

     Section 8.02.  Form of Delivery of the Series 2000-[.] Notes.
                    ---------------------------------------------

             The Series 2000-[.] Notes shall be delivered as Registered Notes as
provided in Section 2.01 of the Indenture.

     Section 8.03.  Counterparts.  This Indenture Supplement may be executed in
                    ------------
two or more counterparts, and by different parties on separate counterparts,
each of which shall be an original, but all of which shall constitute one and
the same instrument.

     Section 8.04.  Governing Law.  THIS INDENTURE SUPPLEMENT 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.

                             [END OF ARTICLE VIII]

                            [SIGNATURE PAGE FOLLOWS]

                                      37
<PAGE>

     IN WITNESS WHEREOF, the undersigned have caused this Indenture Supplement
to be duly executed and delivered by their respective duly authorized officers
on the day and year first above written.

Dated: [.], 2000                             HOUSEHOLD CREDIT CARD NOTE TRUST I,
                                              as Issuer

                                             By: _______________________________
                                                   not in its individual
                                                   capacity, but solely as Owner
                                                   Trustee

                                             By: _______________________________
                                                  Name:
                                                  Title:

                                             WELLS FARGO BANK MINNESOTA, N.A.,
                                              as Indenture Trustee and
                                              Securities Intermediary

                                             By: _______________________________
                                                  not in its individual
                                                  capacity, but solely as
                                                  Indenture Trustee and
                                                  Securities Intermediary

                                             By: _______________________________
                                                  Name:
                                                  Title:

                                      38
<PAGE>

                                                                     EXHIBIT A-1
                                                                     -----------

                                    FORM OF
               CLASS A [FLOATING RATE] [   %] ASSET BACKED NOTE

     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 INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

     THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT
IT WILL NOT AT ANY TIME INSTITUTE AGAINST THE ISSUER OR THE TRANSFEROR, OR JOIN
IN INSTITUTING AGAINST THE ISSUER OR THE TRANSFEROR, ANY BANKRUPTCY,
REORGANIZATION, ARRANGEMENT, INSOLVENCY OR LIQUIDATION PROCEEDINGS, OR OTHER
PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW.

     THE HOLDER OF THIS CLASS A NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH
HOLDER OF A BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE CLASS A NOTES AS
INDEBTEDNESS OF THE ISSUER FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND
FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON, OR MEASURED BY,
INCOME.

                                     A-1-1
<PAGE>

                                           INITIAL OUTSTANDING PRINCIPAL BALANCE
REGISTERED                                                             $______1/
                                                                              -

No. R-__                                                       CUPSIP NO._______

                   HOUSEHOLD CREDIT CARD MASTER NOTE TRUST I

                                 SERIES 2000-_

               CLASS A [FLOATING RATE] [   %] ASSET BACKED NOTE

     Household Credit Card Master Note Trust I (herein referred to as the
"Issuer" or the "Trust"), a Delaware statutory business trust governed by a
-------          -----
Trust Agreement dated as of _______, 2000, for value received, hereby promises
to pay to _________________, or registered assigns, subject to the following
provisions, the principal sum of __________________ DOLLARS, or such greater or
lesser amount as determined in accordance with the Indenture, on the Series
2000-_ Final Maturity Date (which is the earlier to occur of (a) the
Distribution Date on which the Notes is paid in full and (b) the ___________
____ Distribution Date), except as otherwise provided below or in the Indenture.
The Issuer will pay interest on the unpaid principal amount of this Note at the
Class A Note Interest Rate on each Distribution Date until the principal amount
of this Note is paid in full.  Interest on this Note will accrue for each
Distribution Date from and including the most recent Distribution Date on which
interest has been paid to but excluding such Distribution Date or, for the
initial Distribution Date, from and including the Closing Date to but excluding
such Distribution Date.  [Interest will be computed on the basis of a 360-day
year and the actual number of days elapsed.]  Principal of 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.

     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 or on
behalf of the Indenture Trustee, by manual signature, this Note shall not be
entitled to any benefit under the Indenture or the Indenture Supplement referred
to on the reverse hereof, or be valid for any purpose.

______________
1/ Denominations of $1,000 and integral multiples of $1,000 in excess thereof.
-
                                     A-1-2
<PAGE>

     IN WITNESS WHEREOF, the Issuer has caused this Class A Note to be duly
     executed.

                                      HOUSEHOLD CREDIT CARD MASTER NOTE TRUST I,
                                       as Issuer

                                      By:  WILMINGTON TRUST COMPANY, not in its
                                           individual capacity but solely as
                                           Owner Trustee under the Trust
                                           Agreement

                                      By: _____________________________________
                                          Name:
                                          Title:

Dated: ________, _____

                                     A-1-3
<PAGE>

               INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Class A Notes described in the within-mentioned Indenture.

                                               WELLS FARGO BANK MINNESOTA, N.A.,
                                               as Indenture Trustee

                                               By: _______________________
                                                    Authorized Signatory

                                     A-1-4
<PAGE>

                   HOUSEHOLD CREDIT CARD MASTER NOTE TRUST I

                                 SERIES 2000-_

               CLASS A [FLOATING RATE] [   %] ASSET BACKED NOTE

                        Summary of Terms and Conditions

          This Class A Note is one of a duly authorized issue of Notes of the
Issuer, designated as Household Credit Card Master Note Trust I, Series 2000-_
(the "Series 2000-_ Notes"), issued under a Master Indenture dated as of
      -------------------
__________ __, 2000 (the "Master Indenture"), between the Issuer and Wells Fargo
                          ----------------
Bank Minnesota, N.A., as indenture trustee (the "Indenture Trustee"), as
                                                 -----------------
supplemented by the Indenture Supplement dated as of __________ __, 2000 (the
"Indenture Supplement"), and representing the right to receive certain payments
---------------------
from the Issuer. The term "Indenture," unless the context otherwise requires,
refers to the Master Indenture as supplemented by the Indenture Supplement. The
Notes are subject to all of the terms of the Indenture. All terms used in this
Note that are defined in the Indenture shall have the meanings assigned to them
in or pursuant to the Indenture. In the event of any conflict or inconsistency
between the Indenture and this Note, the Indenture shall control.

          The Class B Notes and the Class C Notes will also be issued under the
Indenture.

          The Noteholder, by its acceptance of this Note, agrees that it will
look solely to the property of the Trust allocated to the payment of this Note
for payment hereunder and that the Indenture Trustee is not liable to the
Noteholders for any amount payable under the Note or the Indenture or, except as
expressly provided in the Indenture, subject to any liability under the
Indenture.

          This Note does not purport to summarize the Indenture and reference is
made to the Indenture for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced thereby, and the rights, duties and
immunities of the Indenture Trustee.

          The Class A Note Initial Principal Balance is $[_____________].  The
Class A Note Principal Balance on any date of determination will be an amount
equal to (a) the Class A Note Initial Principal Balance, minus (b) the aggregate
amount of principal payments made to the Class A Noteholders on or prior to such
date.

          The Expected Principal Payment Date is the [________ ________]
Distribution Date, but principal with respect to the Class A Notes may be paid
earlier or later under certain circumstances described in the Indenture. If for
one or more months during the Controlled Accumulation Period there are not
sufficient funds to deposit into the Principal Funding Account the Controlled
Deposit Amount, then to the extent that excess funds are not available on
subsequent Distribution Dates with respect to the Controlled Accumulation Period
to make up for such shortfalls, the final payment of principal of the Notes will
occur later than the Expected Principal Payment Date. Payments of principal of
the Notes shall be payable in accordance with the provisions of the Indenture.

          Subject to the terms and conditions of the Indenture, the Transferor
may, from time to time, direct the Owner Trustee, on behalf of the Trust, to
issue one or more new Series of Notes.

          On each Distribution Date, the Paying Agent shall distribute to each
Class A Noteholder of record on the related Record Date (except for the final
distribution in respect of this Class A Note) such Class A Noteholder's pro rata
share of the amounts held by the Paying Agent that are allocated and

                                     A-1-5
<PAGE>

available on such Distribution Date to pay interest and principal on the Class A
Notes pursuant to the Indenture Supplement. Except as provided in the Indenture
with respect to a final distribution, distributions to Series 2000-_ Noteholders
shall be made by (i) check mailed to each Series 2000-_ Noteholder (at such
Noteholder's address as it appears in the Note Register), except that with
respect to any Series 2000-_ Notes registered in the name of the nominee of a
Clearing Agency, such distribution shall be made in immediately available funds
and (ii) without presentation or surrender of any Series 2000-_ Note or the
making of any notation thereon. Final payment of this Class A Note will be made
only upon presentation and surrender of this Class A Note at the office or
agency specified in the notice of final distribution delivered by the Indenture
Trustee to the Series 2000-_ Noteholders in accordance with the Indenture.

          On any day occurring on or after the date on which the outstanding
principal balance of the Series 2000-_ Notes is reduced to 10% or less of the
initial outstanding principal balance of the Series 2000-_ Notes, the Issuer
shall have the option to redeem the Series 2000-_ Notes, at a purchase price
equal to (i) if such day is a Distribution Date, the Reassignment Amount for
such Distribution Date or (ii) if such day is not a Distribution Date, the
Reassignment Amount for the Distribution Date following such day.

          This Class A Note does not represent an obligation of, or an interest
in, the Transferor, Household Finance Corporation, Household Bank (Nevada), N.A.
or any Affiliate of any of them and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other governmental agency or
instrumentality.

          Each Noteholder, by accepting a Note, hereby covenants and agrees that
it will not at any time institute against the Issuer or the Transferor, or join
in instituting against the Issuer or the Transferor, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States federal or state bankruptcy or similar law.

          Except as otherwise provided in the Indenture Supplement, the Class A
Notes are issuable only in minimum denominations of $1,000 and integral
multiples of $1,000.  The transfer of this Class A Note shall be registered in
the Note Register upon surrender of this Class A Note for registration of
transfer at any office or agency maintained by the Transfer Agent and Registrar
accompanied by a written instrument of transfer, in a form satisfactory to the
Indenture Trustee or the Transfer Agent and Registrar, duly executed by the
Class A Noteholder or such Class A Noteholder's attorney, and duly authorized in
writing with such signature guaranteed, and thereupon one or more new Class A
Notes in any authorized denominations of like aggregate principal amount will be
issued to the designated transferee or transferees.

          As provided in the Indenture and subject to certain limitations
therein set forth, Class A Notes are exchangeable for new Class A Notes in any
authorized denominations and of like aggregate principal amount, upon surrender
of such Notes to be exchanged at the office or agency of the Transfer Agent and
Registrar.  No service charge may be imposed for any such exchange but the
Issuer or Transfer Agent and Registrar may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
therewith.

          The Issuer, the Transferor, the Indenture Trustee and any agent of the
Issuer, Transferor or the Indenture Trustee shall treat the person in whose name
this Class A Note is registered as the owner hereof for all purposes, and
neither the Issuer, the Transferor, the Indenture Trustee nor any agent of the
Issuer, Transferor or the Indenture Trustee shall be affected by notice to the
contrary.

          THIS CLASS A NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW

                                     A-1-6
<PAGE>

PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER
SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

                                     A-1-7
<PAGE>

                                  ASSIGNMENT

Social Security 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: ____________                  ______________________2/
                                                           -

                                     Signature Guaranteed:

                                     ______________________

________________________
2/ NOTE: 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 whatsoever.

                                     A-1-8
<PAGE>

                                                                     EXHIBIT A-2
                                                                     -----------

                                    FORM OF
               CLASS B [FLOATING RATE] [   %] ASSET BACKED NOTE

     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 INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

     THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT
IT WILL NOT AT ANY TIME INSTITUTE AGAINST THE ISSUER OR THE TRANSFEROR, OR JOIN
IN INSTITUTING AGAINST THE ISSUER OR THE TRANSFEROR, ANY BANKRUPTCY,
REORGANIZATION, ARRANGEMENT, INSOLVENCY OR LIQUIDATION PROCEEDINGS, OR OTHER
PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW.

     THE HOLDER OF THIS CLASS B NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH
HOLDER OF A BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE CLASS B NOTES AS
INDEBTEDNESS OF THE ISSUER FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND
FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON, OR MEASURED BY,
INCOME.

                                    A-2-1
<PAGE>

REGISTERED                                                        $___________3/
                                                                              -

No. R-__                                                    CUSIP NO. __________

                   HOUSEHOLD CREDIT CARD MASTER NOTE TRUST I

                                 SERIES 2000-_

               CLASS B [FLOATING RATE] [   %] ASSET BACKED NOTE

     Household Credit Card Master Note Trust I (herein referred to as the
"Issuer" or the "Trust"), a Delaware statutory business trust governed by a
-------          -----
Trust Agreement dated as of ______, 2000, for value received, hereby promises to
pay to _________________, or registered assigns, subject to the following
provisions, the principal sum of __________________ DOLLARS, or such greater or
lesser amount as determined in accordance with the Indenture, on the Series
2000-_ Final Maturity Date (which is the earlier to occur of (a) the
Distribution Date on which the Notes is paid in full and (b) the ___________
____ Distribution Date), except as otherwise provided below or in the Indenture.
The Issuer will pay interest on the unpaid principal amount of this Note at the
Class B Note Interest Rate on each Distribution Date until the principal amount
of this Note is paid in full. Interest on this Note will accrue for each
Distribution Date from and including the most recent Distribution Date on which
interest has been paid to but excluding such Distribution Date or, for the
initial Distribution Date, from and including the Closing Date to but excluding
such Distribution Date. [Interest will be computed on the basis of a 360-day
year and the actual number of days elapsed.] Principal of 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.

     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
or on behalf of the Indenture Trustee, by manual signature, this Note shall not
be entitled to any benefit under the Indenture or the Indenture Supplement
referred to on the reverse hereof, or be valid for any purpose.

          THIS CLASS B NOTE IS SUBORDINATED TO THE EXTENT NECESSARY TO FUND
PAYMENTS ON THE CLASS A NOTES TO THE EXTENT SPECIFIED IN THE INDENTURE
SUPPLEMENT.

__________________
3/ Denominations of $1,000 and integral multiples of $1,000 in excess
-  thereof.

                                     A-2-2
<PAGE>

                   IN WITNESS WHEREOF, the Issuer has caused this Class B Note
                   to be duly executed.

                                      HOUSEHOLD CREDIT CARD MASTER NOTE TRUST I,
                                       as Issuer

                                      By: WILMINGTON TRUST COMPANY, not in its
                                          individual capacity but solely as
                                          Owner Trustee under the Trust
                                          Agreement

                                      By: ________________________________
                                          Name:
                                          Title:

Dated: ________, _____

                                     A-2-3
<PAGE>

               INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Class B Notes described in the within-mentioned Indenture.

                                               WELLS FARGO BANK MINNESOTA, N.A.,
                                               as Indenture Trustee

                                               By: ______________________
                                                   Authorized Signatory

                                     A-2-4
<PAGE>

                   HOUSEHOLD CREDIT CARD MASTER NOTE TRUST I

                                 SERIES 2000-_

               CLASS A [FLOATING RATE] [ %] ASSET BACKED NOTE

                        Summary of Terms and Conditions

          This Class A Note is one of a duly authorized issue of Notes of the
Issuer, designated as Household Credit Card Master Note Trust I, Series 2000-_
(the "Series 2000-_ Notes"), issued under a Master Indenture dated as of
      -------------------
__________ __, 2000 (the "Master Indenture"), between the Issuer and Wells Fargo
                          ----------------
Bank Minnesota, N.A., as indenture trustee (the "Indenture Trustee"), as
                                                 -----------------
supplemented by the Indenture Supplement dated as of __________ __, 2000 (the
"Indenture Supplement"), and representing the right to receive certain payments
 --------------------
from the Issuer.  The term "Indenture," unless the context otherwise requires,
refers to the Master Indenture as supplemented by the Indenture Supplement.  The
Notes are subject to all of the terms of the Indenture.  All terms used in this
Note that are defined in the Indenture shall have the meanings assigned to them
in or pursuant to the Indenture.  In the event of any conflict or inconsistency
between the Indenture and this Note, the Indenture shall control.

          The Class B Notes and the Class C Notes will also be issued under the
Indenture.

          The Noteholder, by its acceptance of this Note, agrees that it will
look solely to the property of the Trust allocated to the payment of this Note
for payment hereunder and that the Indenture Trustee is not liable to the
Noteholders for any amount payable under the Note or the Indenture or, except as
expressly provided in the Indenture, subject to any liability under the
Indenture.

          This Note does not purport to summarize the Indenture and reference is
made to the Indenture for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced thereby, and the rights, duties and
immunities of the Indenture Trustee.

          The Class A Note Initial Principal Balance is $[_____________].  The
Class A Note Principal Balance on any date of determination will be an amount
equal to (a) the Class A Note Initial Principal Balance, minus (b) the aggregate
amount of principal payments made to the Class A Noteholders on or prior to such
date.

          The Expected Principal Payment Date is the [________ ________]
Distribution Date, but principal with respect to the Class A Notes may be paid
earlier or later under certain circumstances described in the Indenture.  If for
one or more months during the Controlled Accumulation Period there are not
sufficient funds to deposit into the Principal Funding Account the Controlled
Deposit Amount, then to the extent that excess funds are not available on
subsequent Distribution Dates with respect to the Controlled Accumulation Period
to make up for such shortfalls, the final payment of principal of the Notes will
occur later than the Expected Principal Payment Date.  Payments of principal of
the Notes shall be payable in accordance with the provisions of the Indenture.

          Subject to the terms and conditions of the Indenture, the Transferor
may, from time to time, direct the Owner Trustee, on behalf of the Trust, to
issue one or more new Series of Notes.

          On each Distribution Date, the Paying Agent shall distribute to each
Class A Noteholder of record on the related Record Date (except for the final
distribution in respect of this Class A Note) such Class A Noteholder's pro rata
share of the amounts held by the Paying Agent that are allocated and

                                     A-2-5
<PAGE>

available on such Distribution Date to pay interest and principal on the Class A
Notes pursuant to the Indenture Supplement. Except as provided in the Indenture
with respect to a final distribution, distributions to Series 2000-_ Noteholders
shall be made by (i) check mailed to each Series 2000-_ Noteholder (at such
Noteholder's address as it appears in the Note Register), except that with
respect to any Series 2000-_ Notes registered in the name of the nominee of a
Clearing Agency, such distribution shall be made in immediately available funds
and (ii) without presentation or surrender of any Series 2000-_ Note or the
making of any notation thereon. Final payment of this Class A Note will be made
only upon presentation and surrender of this Class A Note at the office or
agency specified in the notice of final distribution delivered by the Indenture
Trustee to the Series 2000-_ Noteholders in accordance with the Indenture.

          On any day occurring on or after the date on which the outstanding
principal balance of the Series 2000-_ Notes is reduced to 10% or less of the
initial outstanding principal balance of the Series 2000-_ Notes, the Issuer
shall have the option to redeem the Series 2000-_ Notes, at a purchase price
equal to (i) if such day is a Distribution Date, the Reassignment Amount for
such Distribution Date or (ii) if such day is not a Distribution Date, the
Reassignment Amount for the Distribution Date following such day.

          This Class A Note does not represent an obligation of, or an interest
in, the Transferor, Household Finance Corporation, Household Bank (Nevada), N.A.
or any Affiliate of any of them and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other governmental agency or
instrumentality.

          Each Noteholder, by accepting a Note, hereby covenants and agrees that
it will not at any time institute against the Issuer or the Transferor, or join
in instituting against the Issuer or the Transferor, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States federal or state bankruptcy or similar law.

          Except as otherwise provided in the Indenture Supplement, the Class A
Notes are issuable only in minimum denominations of $1,000 and integral
multiples of $1,000.  The transfer of this Class A Note shall be registered in
the Note Register upon surrender of this Class A Note for registration of
transfer at any office or agency maintained by the Transfer Agent and Registrar
accompanied by a written instrument of transfer, in a form satisfactory to the
Indenture Trustee or the Transfer Agent and Registrar, duly executed by the
Class A Noteholder or such Class A Noteholder's attorney, and duly authorized in
writing with such signature guaranteed, and thereupon one or more new Class A
Notes in any authorized denominations of like aggregate principal amount will be
issued to the designated transferee or transferees.

          As provided in the Indenture and subject to certain limitations
therein set forth, Class A Notes are exchangeable for new Class A Notes in any
authorized denominations and of like aggregate principal amount, upon surrender
of such Notes to be exchanged at the office or agency of the Transfer Agent and
Registrar.  No service charge may be imposed for any such exchange but the
Issuer or Transfer Agent and Registrar may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
therewith.

          The Issuer, the Transferor, the Indenture Trustee and any agent of the
Issuer, Transferor or the Indenture Trustee shall treat the person in whose name
this Class A Note is registered as the owner hereof for all purposes, and
neither the Issuer, the Transferor, the Indenture Trustee nor any agent of the
Issuer, Transferor or the Indenture Trustee shall be affected by notice to the
contrary.

          THIS CLASS A NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW

                                     A-2-6
<PAGE>

PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER
SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

                                     A-2-7
<PAGE>

                                   ASSIGNMENT

Social Security 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:                                                    ____________________4/
                                                                              -

                                                           Signature Guaranteed:

                                                          ______________________

______________

_____________________
4/  NOTE: 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 whatsoever.

                                     A-2-8
<PAGE>

                                                                     EXHIBIT A-3
                                                                     -----------

                                    FORM OF

               CLASS B [FLOATING RATE] [   %] ASSET BACKED NOTE

     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 INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

     THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT
IT WILL NOT AT ANY TIME INSTITUTE AGAINST THE ISSUER OR THE TRANSFEROR, OR JOIN
IN INSTITUTING AGAINST THE ISSUER OR THE TRANSFEROR, ANY BANKRUPTCY,
REORGANIZATION, ARRANGEMENT, INSOLVENCY OR LIQUIDATION PROCEEDINGS, OR OTHER
PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW.

     THE HOLDER OF THIS CLASS B NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH
HOLDER OF A BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE CLASS B NOTES AS
INDEBTEDNESS OF THE ISSUER FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND
FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON, OR MEASURED BY,
INCOME.

                                    A-3-1

<PAGE>

REGISTERED                                                       $___________5/
                                                                             -

No. R-__                                                    CUSIP NO. __________

                   HOUSEHOLD CREDIT CARD MASTER NOTE TRUST I

                                 SERIES 2000-_

               CLASS B [FLOATING RATE] [   %] ASSET BACKED NOTE

     Household Credit Card Master Note Trust I (herein referred to as the
"Issuer" or the "Trust"), a Delaware statutory business trust governed by a
 ------          -----
Trust Agreement dated as of ______, 2000, for value received, hereby promises to
pay to _________________, or registered assigns, subject to the following
provisions, the principal sum of __________________ DOLLARS, or such greater or
lesser amount as determined in accordance with the Indenture, on the Series
2000-_ Final Maturity Date (which is the earlier to occur of (a) the
Distribution Date on which the Notes is paid in full and (b) the ___________
____ Distribution Date), except as otherwise provided below or in the Indenture.
The Issuer will pay interest on the unpaid principal amount of this Note at the
Class B Note Interest Rate on each Distribution Date until the principal amount
of this Note is paid in full.  Interest on this Note will accrue for each
Distribution Date from and including the most recent Distribution Date on which
interest has been paid to but excluding such Distribution Date or, for the
initial Distribution Date, from and including the Closing Date to but excluding
such Distribution Date.  [Interest will be computed on the basis of a 360-day
year and the actual number of days elapsed.]  Principal of 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.

     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
or on behalf of the Indenture Trustee, by manual signature, this Note shall not
be entitled to any benefit under the Indenture or the Indenture Supplement
referred to on the reverse hereof, or be valid for any purpose.

          THIS CLASS B NOTE IS SUBORDINATED TO THE EXTENT NECESSARY TO FUND
PAYMENTS ON THE CLASS A NOTES TO THE EXTENT SPECIFIED IN THE INDENTURE
SUPPLEMENT.

          IN WITNESS WHEREOF, the Issuer has caused this Class B Note to be duly
executed.

                              HOUSEHOLD CREDIT CARD MASTER NOTE TRUST I,
                               as Issuer

_______________________
5/ Denominations of $1,000 and integral multiples of $1,000 in excess thereof.
-

                                     A-3-2
<PAGE>

                             By: WILMINGTON TRUST COMPANY, not in its individual
                                 capacity but solely as Owner Trustee under the
                                 Trust Agreement

                             By:_______________________________
                                Name:
                                Title:

Dated: ________, _____

                                     A-3-3
<PAGE>

               INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Class B Notes described in the within-mentioned Indenture.

                                        WELLS FARGO BANK MINNESOTA, N.A.,
                                        as Indenture Trustee

                                        By:  ________________________
                                             Authorized Signatory

                                     A-3-4
<PAGE>

                   HOUSEHOLD CREDIT CARD MASTER NOTE TRUST I

                                 SERIES 2000-_

               CLASS B [FLOATING RATE] [   %] ASSET BACKED NOTE

                        Summary of Terms and Conditions

          This Class B Note is one of a duly authorized issue of Notes of the
Issuer, designated as Household Credit Card Master Note Trust I, Series 2000-_
(the "Series 2000-_ Notes"), issued under a Master Indenture dated as of _____,
      -------------------
2000 (the "Master Indenture"), between the Issuer and Wells Fargo Minnesota,
           ----------------
N.A., as indenture trustee (the "Indenture Trustee"), as supplemented by the
                                 -----------------
Indenture Supplement dated as of __________ __, 2000 (the "Indenture
                                                           ---------
Supplement"), and representing the right to receive certain payments from the
----------
Issuer.  The term "Indenture," unless the context otherwise requires, refers to
the Master Indenture as supplemented by the Indenture Supplement.  The Notes are
subject to all of the terms of the Indenture.  All terms used in this Note that
are defined in the Indenture shall have the meanings assigned to them in or
pursuant to the Indenture.  In the event of any conflict or inconsistency
between the Indenture and this Note, the Indenture shall control.

          The Class A Notes and the Class C Notes will also be issued under the
Indenture.

          The Noteholder, by its acceptance of this Note, agrees that it will
look solely to the property of the Trust allocated to the payment of this Note
for payment hereunder and that the Indenture Trustee is not liable to the
Noteholders for any amount payable under the Note or the Indenture or, except as
expressly provided in the Indenture, subject to any liability under the
Indenture.

          This Note does not purport to summarize the Indenture and reference is
made to the Indenture for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced thereby, and the rights, duties and
immunities of the Indenture Trustee.

          The Class B Note Initial Principal Balance is $[___________].  The
Class B Note Principal Balance on any date of determination will be an amount
equal to (a) the Class B Note Initial Principal Balance, minus (b) the aggregate
amount of principal payments made to the Class B Noteholders on or prior to such
date.

          The Expected Principal Payment Date is the [________ ________]
Distribution Date, but principal with respect to the Class B Notes may be paid
earlier or later under certain circumstances described in the Indenture.  If for
one or more months during the Controlled Accumulation Period there are not
sufficient funds to deposit into the Principal Funding Account the Controlled
Deposit Amount, then to the extent that excess funds are not available on
subsequent Distribution Dates with respect to the Controlled Accumulation Period
to make up for such shortfalls, the final payment of principal of the Notes will
occur later than the Expected Principal Payment Date.  Payments of principal of
the Notes shall be payable in accordance with the provisions of the Indenture.

          Subject to the terms and conditions of the Indenture, the Transferor
may, from time to time, direct the Owner Trustee, on behalf of the Trust, to
issue one or more new Series of Notes.

          On each Distribution Date, the Paying Agent shall distribute to each
Class B Noteholder of record on the related Record Date (except for the final
distribution in respect of this Class B Note) such Class B Noteholder's pro rata
share of the amounts held by the Paying Agent that are allocated and

                                     A-3-5
<PAGE>

available on such Distribution Date to pay interest and principal on the Class B
Notes pursuant to the Indenture Supplement. Except as provided in the Indenture
with respect to a final distribution, distributions to Series 2000-_ Noteholders
shall be made by (i) check mailed to each Series 2000-_ Noteholder (at such
Noteholder's address as it appears in the Note Register), except that with
respect to any Series 2000-_ Notes registered in the name of the nominee of a
Clearing Agency, such distribution shall be made in immediately available funds
and (ii) without presentation or surrender of any Series 2000-_ Note or the
making of any notation thereon. Final payment of this Class B Note will be made
only upon presentation and surrender of this Class B Note at the office or
agency specified in the notice of final distribution delivered by the Indenture
Trustee to the Series 2000-_ Noteholders in accordance with the Indenture.

          On any day occurring on or after the date on which the outstanding
principal balance of the Series 2000-_ Notes is reduced to 10% or less of the
initial outstanding principal balance of the Series 2000-_ Notes, the Issuer
shall have the option to redeem the Series 2000-_ Notes, at a purchase price
equal to (i) if such day is a Distribution Date, the Reassignment Amount for
such Distribution Date or (ii) if such day is not a Distribution Date, the
Reassignment Amount for the Distribution Date following such day.

          This Class B Note does not represent an obligation of, or an interest
in, the Transferor, Household Finance Corporation, Household Bank (Nevada), N.A.
or any Affiliate of any of them and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other governmental agency or
instrumentality.

          Each Noteholder, by accepting a Note, hereby covenants and agrees that
it will not at any time institute against the Issuer or the Transferor, or join
in instituting against the Issuer or the Transferor, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States federal or state bankruptcy or similar law.

          Except as otherwise provided in the Indenture Supplement, the Class B
Notes are issuable only in minimum denominations of $1,000 and integral
multiples of $1,000.  The transfer of this Class B Note shall be registered in
the Note Register upon surrender of this Class B Note for registration of
transfer at any office or agency maintained by the Transfer Agent and Registrar
accompanied by a written instrument of transfer, in a form satisfactory to the
Indenture Trustee or the Transfer Agent and Registrar, duly executed by the
Class B Noteholder or such Class B Noteholder's attorney, and duly authorized in
writing with such signature guaranteed, and thereupon one or more new Class B
Notes in any authorized denominations of like aggregate principal amount will be
issued to the designated transferee or transferees.

          As provided in the Indenture and subject to certain limitations
therein set forth, Class B Notes are exchangeable for new Class B Notes in any
authorized denominations and of like aggregate principal amount, upon surrender
of such Notes to be exchanged at the office or agency of the Transfer Agent and
Registrar.  No service charge may be imposed for any such exchange but the
Issuer or Transfer Agent and Registrar may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
therewith.

          The Issuer, the Transferor, the Indenture Trustee and any agent of the
Issuer, the Transferor or the Indenture Trustee shall treat the person in whose
name this Class B Note is registered as the owner hereof for all purposes, and
neither the Issuer, the Transferor, the Indenture Trustee nor any agent of the
Issuer, the Transferor or the Indenture Trustee shall be affected by notice to
the contrary.

          THIS CLASS B NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW

                                     A-3-6
<PAGE>

PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER
SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

                                     A-3-7
<PAGE>

                                  ASSIGNMENT

Social Security 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:                                                     __________________6/
                                                                             -

                                                           Signature Guaranteed:

                                                           _____________________

_________________

___________________
6/  NOTE: 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 whatsoever.

                                     A-3-8
<PAGE>

                                                                       EXHIBIT B
                                                                       ---------

                   FORM OF MONTHLY PAYMENT INSTRUCTIONS AND
                     NOTIFICATION TO THE INDENTURE TRUSTEE

                        ______________________________

                   HOUSEHOLD CREDIT CARD MASTER NOTE TRUST I

                                 SERIES 2000-_

                        ______________________________

          The undersigned, a duly authorized representative of Household Finance
Corporation ("HFC"), as Servicer pursuant to the Transfer and Servicing
              ---
Agreement, dated as of ______, 2000 (as amended and supplemented, the "Transfer
                                                                       --------
and Servicing Agreement"), among HFC, Household Receivables Funding, Inc. III.
-----------------------
("HRF"), as Transferor and Household Credit Card Master Note Trust I (the
  ---
"Trust"), does hereby certify as follows:
 -----

          1.   Capitalized terms used in this Certificate have their respective
meanings set forth in the Transfer and Servicing Agreement or the Master
Indenture, dated as of ______, 2000 (as amended or supplemented, the "Master
                                                                      ------
Indenture"), between the Trust and Wells Fargo Bank Minnesota, N.A., as
---------
indenture trustee (the "Indenture Trustee") as supplemented by the Series 2000-_
                        -----------------
Indenture Supplement, dated as of __________ __, 2000, between the Trust and the
Indenture Trustee (as amended and supplemented, the "Indenture Supplement"), as
                                                     --------------------
applicable.

          2.   HFC is the Servicer.

          3.   The undersigned is an Authorized Officer of the Servicer.

I    INSTRUCTION TO MAKE A WITHDRAWAL
     --------------------------------

          Pursuant to subsection 4.04(a), the Servicer does hereby instruct the
Indenture Trustee (i) to make withdrawals from the Collection Account on
___________, ____, which date is a Distribution Date under the Indenture
Supplement, in the aggregate amounts (equal to the Available Finance Charge
Collections) as set forth below in respect of the following amounts and (ii) to
apply the proceeds of such withdrawals in accordance with subsections 3.01(a)
and 4.04(a):

          A)   Pursuant to subsection 3.01(b):
               -------------------------------

                  (1)    Servicer Interchange.......................  $_______

          B)   Pursuant to subsection 4.04(a)(i):
               ----------------------------------

                    (1)  Interest at the Class A Note Interest Rate
               for the related Interest Period on the outstanding
               principal balance of the Class A Notes...............  $_______

                                      B-1
<PAGE>

                    (2)  Class A Monthly Interest previously due but
               not paid  ...........................................  $_______

                    (3)  Class A Additional Interest and any Class A
               Additional Interest previously due but not paid......  $_______

           C)  Pursuant to subsection 4.04(a)(ii):
               -----------------------------------

          (1)  Interest at the Class B Note Interest Rate for the
               related Interest Period on the outstanding principal
               balance of the Class B Notes.........................  $_______

          (2)  Class B Monthly Interest previously due but not
               paid.................................................  $_______

          (3)  Class B Additional Interest and any Class B Additional
               Interest previously due but not paid.................  $_______

           D)  Pursuant to subsection 4.04(a)(iii):
               ------------------------------------

                    (1)  If HFC or an Affiliate of HFC is no longer
               the Servicer, the Monthly Servicing Fee for such
               Distribution Date....................................  $_______

                    (2)  If HFC or an Affiliate of HFC is no longer
               the Servicer, the accrued and unpaid Monthly Servicing
               Fees.................................................  $_______

                    (3)  If HFC or an Affiliate of HFC is no longer
               the Administrator, the Monthly Administration Fee for
               such Distribution Date...............................  $_______

                    (4)  If HFC or an Affiliate of HFC is no longer
               the Administrator, the accrued and unpaid Monthly
               Administration Fees..................................  $_______

           E)  Pursuant to subsection 4.04(a)(iv):
               -----------------------------------

                    (1)  Interest at the Class C Note Interest Rate
               for the related Interest Period on the outstanding
               principal balance of the Class C Notes...............  $_______

                    (2)  Class C Monthly Interest previously due but
               not paid.............................................. $_______

                    (3)  Class C Additional Interest and any Class C
               Additional Interest previously due but not paid......  $_______

           F)  Pursuant to subsection 4.04(a)(v):
               ----------------------------------

                    (1)  Investor Default Amount for such
               Distribution Date to be treated as Available Principal
               Collections..........................................  $_______

           G)  Pursuant to subsection 4.04(a)(vi):
               -----------------------------------

                    (1)  Aggregate amount of Investor Charge-Offs
               and Subordinated Principal Collections not previously
               reimbursed to be treated as Available Principal
               Collections..........................................  $_______

                                      B-2
<PAGE>

          H)   Pursuant to subsection 4.04(a)(vii):
               ------------------------------------

                    (1)  If HFC or an Affiliate of HFC is the
               Servicer, the Monthly Servicing Fee for such
               Distribution Date....................................  $_______

                    (2)  If HFC or an Affiliate of HFC is the
               Servicer, the accrued and unpaid Monthly Servicing
               Fees.................................................  $_______

          I)   Pursuant to subsection 4.04(a)(viii):
               -------------------------------------

                    (1)  If HFC or an Affiliate of HFC is the
               Administrator, the Monthly Administration Fee for
               such Distribution Date...............................  $_______

                    (2)  If HFC or an Affiliate of HFC is the
               Administrator, the accrued and unpaid Monthly
               Administration Fees..................................  $_______

          J)   Pursuant to subsection 4.04(a)(ix):
               -----------------------------------

                    (2)  An amount equal to the amounts to be
               deposited in the Reserve Account to be deposited in
               the Reserve Account..................................  $_______

          K)   Pursuant to subsection 4.04(a)(x):
               ----------------------------------

                    (1)  An amount equal to the amounts to be
               deposited in the Spread Account to be deposited
               in the Spread Account................................  $_______

          Pursuant to subsections 4.04(b) and (c), the Servicer hereby instructs
the Indenture Trustee (i) to make withdrawals from the Collection Account on
____________, which date is a Distribution Date under the Indenture Supplement,
in the aggregate amounts (equal to the Available Principal Collections) as set
forth below in respect of the following amounts and (ii) to apply the proceeds
of such withdrawals in accordance with subsections 4.04(b) and (c):

          A)   Pursuant to subsection 4.04(b):
               -------------------------------

               (1)  Amount equal to Available Principal
          Collections to be treated as Shared Principal
          Collections...............................................  $_______

          B)   Pursuant to subsection 4.04(c)(i):
               ----------------------------------

               (1)  During Controlled Accumulation Period,
          Monthly Principal for such Distribution Date
          deposited into the Principal Funding Account..............  $_______

          C)   Pursuant to subsection 4.04(c)(ii):
               -----------------------------------

               (1)  During Early Amortization Period, Monthly
          Principal for such Distribution Date to Class A Notes
          until Class A Notes paid in full..........................  $_______

          D)   Pursuant to subsection 4.04(c)(iii):
               ------------------------------------

               (1)  After giving effect to clause (C) above, during

                                      B-3
<PAGE>

               Early Amortization Period, if any remaining Monthly
               Principal, to Class B Notes until Class B Notes paid
               in full..............................................  $_______

               E)   Pursuant to subsection 4.04(c)(iv):
                    -----------------------------------

                    (1)  After giving effect to clauses (C) and (D)
               above, during Early Amortization Period, if any
               remaining Monthly Principal, to Class C Notes until
               Class C Notes paid in full...........................  $_______

               F)   Pursuant to subsection 4.04(c)(v):
                    ----------------------------------

                    (1)  Amount, if any, remaining after giving
               effect to clauses (B) or (E) above, to be treated as
               Shared Principal Collections.........................  $_______

          Pursuant to Section 4.06, the Servicer does hereby instruct the
Indenture Trustee to apply on __________, which is a Distribution Date under the
Indenture Supplement, any Subordinated Principal Collections for such
Distribution Date in amount equal to the lesser of Available Investor Principal
Collections and the Monthly Subordination Amount for the preceding Due Period.

II.  INSTRUCTION TO MAKE CERTAIN PAYMENTS

          Pursuant to Section 5.02, the Servicer does hereby instruct the
Indenture Trustee or the Paying Agent, as the case may be, to pay in accordance
with Section 5.02 from the Collection Account or the Principal Funding Account,
as applicable, on __________, which date is a Distribution Date under the
Indenture Supplement, the following amounts as set forth below:

     A)   Pursuant to subsection 5.02(a):
          -------------------------------

        Interest to be distributed to Class A Noteholders.........    $________

     B)   Pursuant to subsection 5.02(b):
          -------------------------------

        Principal to be distributed to Class A Noteholders........    $________

     C)   Pursuant to subsection 5.02(c):
          -------------------------------

        Interest to be distributed to Class B Noteholders.........    $________

     D)   Pursuant to subsection 5.02(d):
          -------------------------------

        Principal to be distributed to Class B Noteholders........    $________

     E)   Pursuant to subsection 5.02(e):
          -------------------------------

        Interest to be distributed to Class C Noteholders
        (including amounts from the Spread Account)...............    $________

     F)   Pursuant to subsection 5.02(f):
          -------------------------------

        Principal to be distributed to Class C Noteholders........    $________

                                      B-4
<PAGE>

          IN WITNESS WHEREOF, the undersigned has duly executed this Certificate
this ____ day of ________, _____.

                              HOUSEHOLD FINANCE CORPORATION

                              By: _______________________________________
                                  Name:
                                  Title:

                                      B-5
<PAGE>

                                                                       EXHIBIT C
                                                                       ---------

                           FORM OF MONTHLY STATEMENT

                   HOUSEHOLD CREDIT CARD MASTER NOTE TRUST I
                                 SERIES 2000-_

          Pursuant to the Master Indenture, dated as of ______, 2000 (as amended
and supplemented, the "Master Indenture"), between Household Credit Card Master
                       ----------------
Note Trust I (the "Trust") and Wells Fargo Bank Minnesota, N.A., as indenture
                   -----
trustee (the "Indenture Trustee"), as supplemented by the Series 2000-_
              -----------------
Indenture Supplement, dated as of __________ __, 2000 (the "Indenture
                                                            ---------
Supplement"), between the Trust and the Indenture Trustee, Household Finance
Corporation, as Servicer (the "Servicer") under the Transfer and Servicing
                               --------
Agreement, dated as of ______, 2000 (the "Transfer and Servicing Agreement")
                                          --------------------------------
among Household Receivables Funding, Inc. III, as Transferor, the Servicer and
the Trust, is required to prepare certain information each month regarding
current distributions to the Series 2000-_ Noteholders and the performance of
the Trust during the previous month.  The information which is required to be
prepared with respect to the Distribution Date of __________, and with respect
to the performance of the Trust during the month of __________ is set forth
below. Capitalized terms used in this Monthly Statement have their respective
meanings set forth in the Master Indenture and the Indenture Supplement.

     A)   Information regarding distributions in respect of the Class A
          Notes

          (1)  The total amount of the distribution in respect of Class A
          Notes.......................................................... $_____

          (2)  The amount of the distribution set forth in paragraph 1
          above in respect of interest on the Class A Notes.............. $_____

          (3)  The amount of the distribution set forth in paragraph 1
          above in respect of principal of the Class A Notes............. $_____

     B)   Information regarding distributions in respect of the Class B
          Notes

          (1)  The total amount of the distribution in respect of Class B
          Notes.......................................................... $_____

          (2)  The amount of the distribution set forth in paragraph 1
          above in respect of interest on the Class B Notes.............. $-----

          (3)  The amount of the distribution set forth in paragraph 1
          above in respect of principal of the Class B Notes............. $_____

                                      C-1
<PAGE>

     C)   Information regarding distributions in respect of the Class C
          Notes.......................................................... $_____

          (1)  The total amount of the distribution in respect of Class C
          Notes.......................................................... $_____

          (2)  The amount of the distribution set forth in paragraph 1
          above in respect of interest on the Class C Notes.............. $_____

          (3)  The amount of the distribution set forth in paragraph 1
          above in respect of principal of the Class C Notes............. $_____

RECEIVABLES --

Beginning of the Month Principal Receivables:                         $_________
Beginning of the Month Finance Charge and Administrative              $_________
Receivables:
Beginning of the Month Discounted Receivables:                        $_________
Beginning of the Month Total Receivables:                             $_________

Removed Principal Receivables:                                        $_________
Removed Finance Charge and Administrative Receivables:                $_________
Removed Total Receivables:                                            $_________

Additional Principal Receivables:                                     $_________
Additional Finance Charge and Administrative Receivables:             $_________
Additional Total Receivables:                                         $_________

Discounted Receivables Generated this Period:                         $_________
End of the Month Principal Receivables:                               $_________
End of the Month Finance Charge and Administrative Receivables:       $_________
End of the Month Discounted Receivables:                              $_________
End of the Month Total Receivables:                                   $_________

Special Funding Account Balance:                                      $_________
Aggregate Principal Balance (all Series):                             $_________
End of the Month Transferor Interest:                                 $_________

                                      C-2
<PAGE>

DELINQUENCIES AND LOSSES --

End of the Month Delinquencies:                                  RECEIVABLES
                                                                 -----------

  1-29 Days Delinquent                                           $_________
  30-59 Days Delinquent                                          $_________
  60-89 Days Delinquent                                          $_________
  90-119 Days Delinquent                                         $_________
  120+ Days Delinquent                                           $_________

  Total End of Month Delinquencies                               $_________

Defaulted Receivables During the Month                           $_________

NOTE PRINCIPAL BALANCES --

  Class A Note Principal Balance                  $_________
  Class B Note Principal Balance                  $_________
  Class C Note Principal Balance                  $_________

INITIAL INVESTED AMOUNT                                          $_________

MONTHLY SERVICING FEE                                            $_________

INVESTOR DEFAULT AMOUNT                                          $_________

INVESTOR CHARGE-OFFS                                             $_________

SERIES 2000-_ INFORMATION
  FLOATING INVESTOR PERCENTAGE                                   _________%
  FIXED INVESTOR PERCENTAGE                                      _________%
  AVAILABLE FINANCE CHARGE COLLECTIONS                           $_________
  INVESTOR DEFAULT AMOUNT                                        $_________
  MONTHLY SERVICING FEES                                         $_________
  AVAILABLE PRINCIPAL COLLECTIONS                                $_________

                                      C-3
<PAGE>

  REQUIRED TRANSFEROR INTEREST                                   $_________
  EXCESS FINANCE CHARGE AND ADMINISTRATIVE                       $_________
  COLLECTIONS
  SHARED PRINCIPAL COLLECTIONS                                   $_________

APPLICATION OF COLLECTIONS --

CLASS A MONTHLY INTEREST                                         $__________
CLASS B MONTHLY INTEREST                                         $__________
IF HFC OR AN AFFILIATE OF HFC IS NO LONGER
SERVICER, MONTHLY SERVICING FEE                                  $__________
IF HFC OR AN AFFILIATE OF HFC IS NO LONGER
  ADMINISTRATOR, THE MONTHLY ADMINISTRATION FEE                  $__________
CLASS C MONTHLY INTEREST                                         $__________
INVESTOR DEFAULT AMOUNT                                          $__________
INVESTOR CHARGE OFFS AND                                         $__________
 REALLOCATED PRINCIPAL COLLECTIONS
 NOT PREVIOUSLY REIMBURSED
IF HFC OR AN AFFILIATE OF HFC IS SERVICER, MONTHLY
  SERVICING FEE                                                  $__________
IF HFC OR AN AFFILIATE OF HFC IS ADMINISTRATOR,
 THE MONTHLY ADMINISTRATION FEE                                  $__________
AMOUNTS TO BE DEPOSITED IN THE                                   $__________
 RESERVE ACCOUNT
AMOUNTS TO BE DEPOSITED IN THE                                   $__________
 SPREAD ACCOUNT

EXCESS FINANCE CHARGE AND ADMINISTRATIVE COLLECTIONS

TOTAL EXCESS FINANCE CHARGE AND ADMINISTRATIVE
  COLLECTIONS FOR ALL ALLOCATION SERIES                          $_________

YIELD AND BASE RATE --

  Base Rate (Current Month)                       _________%
  Base Rate (Prior Month)                         _________%
  Base Rate (Two Months Ago)                      _________%
THREE MONTH AVERAGE BASE RATE                                    _________%

                                      C-4
<PAGE>

  Portfolio Yield (Current Month)                 _________%
  Portfolio Yield (Prior Month)                   _________%
  Portfolio Yield (Two Months Ago)                _________%
THREE MONTH AVERAGE PORTFOLIO YIELD                              _________%

PRINCIPAL COLLECTIONS --

MONTHLY PRINCIPAL                                                _________%

SERIES 2000-_ PRINCIPAL SHORTFALL                                $_________

SHARED PRINCIPAL COLLECTIONS ALLOCABLE FROM
  OTHER PRINCIPAL SHARING SERIES                                 $_________

INVESTOR CHARGE OFFS AND REDUCTIONS

INVESTOR CHARGE OFFS                                             $_________
REDUCTIONS IN INVESTED AMOUNT (OTHER THAN BY
  PRINCIPAL PAYMENTS)                                            $_________
PREVIOUS REDUCTIONS IN INVESTED AMOUNT
  REIMBURSED                                                     $_________

                                   ________________________________________
                                   as Paying Agent

                                   By: _______________________________________
                                       Name:
                                       Title:

                                      C-5
<PAGE>

                                                                       EXHIBIT D
                                                                       ---------

                    FORM OF MONTHLY SERVICER'S CERTIFICATE

                         HOUSEHOLD FINANCE CORPORATION

                   HOUSEHOLD CREDIT CARD MASTER NOTE TRUST I
                                 SERIES 2000-_

          The undersigned, a duly authorized representative of Household Finance
Corporation ("HFC"), as Servicer pursuant to the Transfer and Servicing
              ---
Agreement, dated as of ______, 2000 (as amended and supplemented, the "Transfer
                                                                       --------
and Servicing Agreement"), among HFC, Household Receivables Funding, Inc. III
-----------------------
("HRF"), as Transferor and Household Credit Card Master Note Trust I (the
  ---
"Trust"), does hereby certify as follows:
 -----

          1.   Capitalized terms used in this Certificate have their respective
     meanings set forth in the Transfer and Servicing Agreement or the Master
     Indenture, dated as of ______, 2000 (as amended or supplemented, the
     "Master Indenture"), between the Trust and Wells Fargo Bank Minnesota,
      ----------------
     N.A., as indenture trustee (the "Indenture Trustee") as supplemented by the
                                      -----------------
     Series 2000-_ Indenture Supplement, dated as of __________ __, 2000,
     between the Trust and the Indenture Trustee (as amended and supplemented,
     the "Indenture Supplement" and together with the Master Indenture, the
          --------------------
     "Indenture"), as applicable.
     ----------

          2.   HFC is, as of the date hereof, the Servicer under the Transfer
     and Servicing Agreement.

          3.   The undersigned is an Authorized Officer of the Servicer.

          4.   This Certificate relates to the Distribution Date occurring on
     __________ ____, 200_.

          5.   As of the date hereof, to the best knowledge of the undersigned,
     the Servicer has performed in all material respects all its obligations
     under the Transfer and Servicing Agreement and the Indenture through the
     Monthly Period preceding such Distribution Date [or, if there has been a
     default in the performance of any such obligation, set forth in detail the
     (i) nature of such default, (ii) the action taken by the Servicer, if any,
     to remedy such default and (iii) the current status of each such default];
     if applicable, insert "None".

          6.   As of the date hereof, to the best knowledge of the undersigned,
     no Amortization Event occurred on or prior to such Distribution Date.

                                      D-1
<PAGE>

          IN WITNESS WHEREOF, the undersigned has duly executed and delivered
this Certificate this ____ day of ____, ____.

                                   HOUSEHOLD FINANCE CORPORATION,
                                    Servicer

                                   By: ________________________________
                                       Name:
                                       Title:

                                      D-2<PAGE>

                                                                     EXHIBIT 4.4

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

                                TRUST AGREEMENT

                                    between

                   HOUSEHOLD RECEIVABLES FUNDING, INC. III,
                                 as Transferor

                                      and

                           WILMINGTON TRUST COMPANY,
                               as Owner Trustee

                             Dated as of [.], 2000

--------------------------------------------------------------------------------
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<S>                                                                                                           <C>
ARTICLE I  DEFINITIONS.........................................................................................  1

SECTION 1.01          CAPITALIZED TERMS........................................................................  1

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

ARTICLE II  ORGANIZATION.......................................................................................  4

SECTION 2.01.         NAME.....................................................................................  4

SECTION 2.02.         OFFICE...................................................................................  4

SECTION 2.03.         PURPOSE AND POWERS.......................................................................  4

SECTION 2.04.         APPOINTMENT OF OWNER TRUSTEE.............................................................  4

SECTION 2.05.         INITIAL CAPITAL CONTRIBUTION OF TRUST ESTATE.............................................  4

SECTION 2.06.         DECLARATION OF TRUST.....................................................................  5

SECTION 2.07.         TITLE TO TRUST PROPERTY..................................................................  5

SECTION 2.08.         SITUS OF TRUST...........................................................................  5

SECTION 2.09.         REPRESENTATIONS AND WARRANTIES OF TRANSFEROR.............................................  5

SECTION 2.10.         LIABILITY OF CERTIFICATEHOLDERS..........................................................  6

ARTICLE III  CERTIFICATES......................................................................................  7

SECTION 3.01.         INITIAL OWNERSHIP........................................................................  7

SECTION 3.02.         FORM OF CERTIFICATES.....................................................................  7

SECTION 3.03.         AUTHENTICATION OF CERTIFICATES...........................................................  7

SECTION 3.04.         RESTRICTIONS ON TRANSFER.................................................................  7

SECTION 3.05.         MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATE.........................................  7

SECTION 3.06.         ISSUANCE OF NEW TRANSFEROR CERTIFICATES..................................................  8

ARTICLE IV  ACTIONS BY OWNER TRUSTEE........................................................................... 10

SECTION 4.01.         PRIOR NOTICE TO OWNER AND TRANSFEROR WITH RESPECT TO CERTAIN MATTERS..................... 10

SECTION 4.02.         RESTRICTIONS ON POWER.................................................................... 10

ARTICLE V  AUTHORITY AND DUTIES OF OWNER TRUSTEE............................................................... 11

SECTION 5.01.         GENERAL AUTHORITY........................................................................ 11

SECTION 5.02.         GENERAL DUTIES........................................................................... 11

SECTION 5.03.         ACTION UPON INSTRUCTION.................................................................. 11

SECTION 5.04.         NO DUTIES EXCEPT AS SPECIFIED IN THIS AGREEMENT OR IN INSTRUCTIONS....................... 12

SECTION 5.05.         NO ACTION EXCEPT UNDER SPECIFIED DOCUMENTS OR INSTRUCTIONS............................... 12

SECTION 5.06.         RESTRICTIONS............................................................................. 12
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                                            <C>
SECTION 5.06.         [RESERVED]............................................................................... 12

ARTICLE VI  CONCERNING THE OWNER TRUSTEE....................................................................... 13

SECTION 6.01          ACCEPTANCE OF TRUSTS AND DUTIES.......................................................... 13

SECTION 6.02.         FURNISHING OF DOCUMENTS.................................................................. 14

SECTION 6.03.         REPRESENTATIONS AND WARRANTIES........................................................... 14

SECTION 6.04.         RELIANCE; ADVICE OF COUNSEL.............................................................. 14

SECTION 6.05.         NOT ACTING IN INDIVIDUAL CAPACITY........................................................ 15

SECTION 6.06.         OWNER TRUSTEE NOT LIABLE FOR CERTIFICATES, NOTES OR RECEIVABLES.......................... 15

SECTION 6.07.         OWNER TRUSTEE MAY OWN NOTES.............................................................. 15

ARTICLE VII  COMPENSATION OF OWNER TRUSTEE..................................................................... 16

SECTION 7.01.         OWNER TRUSTEE'S FEES AND EXPENSES........................................................ 16

SECTION 7.02.         INDEMNIFICATION.......................................................................... 16

SECTION 7.03.         PAYMENTS TO THE OWNER TRUSTEE............................................................ 16

ARTICLE VIII  TERMINATION OF TRUST AGREEMENT................................................................... 17

SECTION 8.01.         TERMINATION OF TRUST AGREEMENT........................................................... 17

ARTICLE IX  SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES............................................. 18

SECTION 9.01.         ELIGIBILITY REQUIREMENTS FOR OWNER TRUSTEE............................................... 18

SECTION 9.02.         RESIGNATION OR REMOVAL OF OWNER TRUSTEE.................................................. 18

SECTION 9.03.         SUCCESSOR OWNER TRUSTEE.................................................................. 18

SECTION 9.04.         MERGER OR CONSOLIDATION OF OWNER TRUSTEE................................................. 19

SECTION 9.05.         APPOINTMENT OF CO-TRUSTEE OR SEPARATE TRUSTEE............................................ 19

ARTICLE X  MISCELLANEOUS....................................................................................... 21

SECTION 10.01.        SUPPLEMENTS AND AMENDMENTS............................................................... 21

SECTION 10.02.        NO LEGAL TITLE TO TRUST ESTATE IN TRANSFEROR............................................. 22

SECTION 10.03.        LIMITATIONS ON RIGHTS OF OTHERS.......................................................... 22

SECTION 10.04.        NOTICES.................................................................................. 22

SECTION 10.05.        SEVERABILITY............................................................................. 22

SECTION 10.06.        SEPARATE COUNTERPARTS.................................................................... 22

SECTION 10.07.        SUCCESSORS AND ASSIGNS................................................................... 22

SECTION 10.08.        NONPETITION COVENANTS.................................................................... 22

SECTION 10.09.        NO RECOURSE.............................................................................. 23

SECTION 10.10.        HEADINGS................................................................................. 23

SECTION 10.11.        GOVERNING LAW............................................................................ 23
</TABLE>

                                      ii
<PAGE>

<TABLE>
<S>                                                                                                            <C>
SECTION 10.12.        TRANSFEROR PAYMENT OBLIGATION............................................................ 23

SECTION 10.13.        ACCEPTANCE OF TERMS OF AGREEMENT......................................................... 23

SECTION 10.14.        INTEGRATION OF DOCUMENTS................................................................. 23
</TABLE>

                                      iii
<PAGE>

                                    EXHIBITS
<TABLE>
<S>                                                                                                            <C>
EXHIBIT A                  FORM OF OWNERSHIP INTEREST CERTIFICATE.............................................. A-1

EXHIBIT B                  FORM OF TRANSFEROR CERTIFICATE...................................................... B-1

EXHIBIT C                  FORM OF CERTIFICATE OF TRUST........................................................ C-1
</TABLE>

                                      iv
<PAGE>

     HOUSEHOLD CREDIT CARD MASTER NOTE TRUST I TRUST AGREEMENT dated as of [.],
2000, between HOUSEHOLD RECEIVABLES FUNDING, INC. III, a Delaware corporation,
as Transferor, and WILMINGTON TRUST COMPANY, a Delaware banking corporation, as
Owner Trustee.

                                   ARTICLE I

                                  DEFINITIONS

     Section 1.01  Capitalized Terms.  For all purposes of this Agreement, the
                   -----------------
following terms shall have the meanings set forth below:

     "Administration Agreement" shall mean the Administration Agreement, dated
      ------------------------
as of [.], 2000, between the Issuer and Household Finance Corporation, as
Administrator.

     "Administrator" shall mean Household Finance Corporation, or any successor
      -------------
Administrator under the Administration Agreement.

     "Agreement" shall mean this Trust Agreement relating to the Household
      ---------
Credit Card Master Note Trust I, as the same may be amended, modified or
otherwise supplemented from time to time.

     "Business Trust Statute" shall mean Chapter 38 of Title 12 of the Delaware
      ----------------------
Code, 12 Del. C. (S) 3801, et seq., as the same may be amended from time to
         -------           -------
time.

     "Certificates" shall mean, unless otherwise indicated, the Transferor
      ------------
Certificates and the Ownership Interest Certificate.

     "Certificate of Trust" shall mean the Certificate of Trust in the form
      --------------------
attached hereto as Exhibit C which has been filed for the Trust pursuant to
Section 3810(a) of the Business Trust Statute.

     "Certificateholder" or "Holder" shall mean with respect to the Transferor's
      -----------------      ------
Interest, a Person in whose name the Transferor Certificates are registered or a
Person in whose name ownership of the uncertificated interest in the
Transferor's Interest is recorded in the books and records of the Trustee.

     "Corporate Trust Office" shall mean, with respect to the Owner Trustee, the
      ----------------------
principal corporate trust office of the Owner Trustee located at [.]; or such
other address as the Owner Trustee may designate by notice to the Transferor, or
the principal corporate trust office of any successor Owner Trustee (the address
of which the successor Owner Trustee will notify the Owner and the Transferor).

     "Expenses" shall have the meaning specified in Section 7.02.
      --------

     "Foreclosure Remedy" shall have the meaning specified in the Indenture.
      ------------------

     "Indemnified Parties" shall have the meaning specified in Section 7.02.
      -------------------

     "Indenture" shall mean the Master Indenture, dated as of [.], 2000, between
      ---------
the Trust and Wells Fargo Bank Minnesota, N.A., as Indenture Trustee, as the
same may be amended, supplemented or otherwise modified from time to time.
<PAGE>

     "Indenture Trustee" shall mean Wells Fargo Bank Minnesota, N.A., not in its
      -----------------
individual capacity but solely as Indenture Trustee under the Indenture, and any
successor Indenture Trustee under the Indenture.

     "Issuer" shall mean the Trust.
      ------

     "Owner" shall mean Household Receivables Funding, Inc. III, and its
      -----
successors and permitted assigns, in its capacity as Owner hereunder.

     "Owner Trustee" shall mean Wilmington Trust Company, a Delaware banking
      -------------
corporation, not in its individual capacity but solely as owner trustee under
this Agreement (unless otherwise specified herein), and any successor Owner
Trustee hereunder.

     "Ownership Interest Certificate" shall mean the certificate evidencing the
      ------------------------------
sole ownership interest in the Trust, substantially in the form attached hereto
as Exhibit A.

     "Secretary of State" shall mean the Secretary of State of the State of
      ------------------
Delaware.

     "Supplemental Certificate" shall have the meaning specified in subsection
      ------------------------
3.06(b).

     "Transfer and Servicing Agreement" shall mean the Transfer and Servicing
      --------------------------------
Agreement, dated as of [.], 2000, among the Issuer, the Transferor and Household
Finance Corporation, as Servicer, as the same may be amended, supplemented or
otherwise modified from time to time.

     "Transferor" shall mean Household Receivables Funding, Inc. III, in its
      ----------
capacity as Transferor hereunder and its successors and assigns in such
capacity.

     "Transferor Certificate Supplement" shall have the meaning specified in
      ---------------------------------
subsection 3.06(b).

     "Transferor Certificates" shall mean, if the Transferor elects (a) to
      -----------------------
evidence its interest in the Transferor's Interest in certificated form pursuant
to Section 3.06, the certificates executed by executed by the Transferor and
authenticated by or on behalf of the Owner Trustee, substantially in the form of
Exhibit B or (b) to have its interest in the Transferor's Interest be
---------
uncertificated pursuant to Section 3.06, such uncertificated interest.

     "Transferor's Interest" shall have the meaning specified in subsection
      ---------------------
3.06(a).

     "Trust" shall mean the trust created by this Agreement and the filing of
      -----
the Certificate of Trust.

     "Trust Company" shall mean Wilmington Trust Company.
      -------------

     "Trust Estate" shall mean all right, title and interest of the Trust in and
      ------------
to the property and rights assigned to the Trust pursuant to Section 2.05 of
this Agreement and Section 2.01 of the Transfer and Servicing Agreement, all
monies, securities, instruments and other property on deposit from time to time
in the Collection Account, the Series Accounts and the Special Funding Account
and all other property of the Trust from time to time, including any rights of
the Owner Trustee and the Trust pursuant to the Transfer and Servicing
Agreement.

     "Trust Termination Date" shall have the meaning specified in Section 8.01.
      ----------------------

                                       2
<PAGE>

     Section 1.02.  Other Definitional Provisions.  Capitalized terms used
                    -----------------------------
herein and not otherwise defined have the meanings assigned to them in the
Transfer and Servicing Agreement or, if not defined therein, in the Indenture.

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

     (b) As used in this Agreement and in any certificate or other document made
or delivered pursuant hereto or thereto, accounting terms not defined in this
Agreement or in any such certificate or other document, and accounting terms
partly defined in this Agreement or in any such certificate or other document to
the extent not defined, shall have the respective meanings given to them under
generally accepted accounting principles or regulatory accounting principles, as
applicable and as in effect on the date of this Agreement.  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 or regulatory accounting principles in
the United States, the definitions contained in this Agreement or in any such
certificate or other document shall control.

     (c) The words "hereof", "herein" and "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; references to any subsection,
Section, Schedule or Exhibit are references to subsections, Sections, Schedules
and Exhibits in or to this Agreement unless otherwise specified; and the term
"including" means "including without limitation."
 ---------         ----------------------------

     (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.

                               [End of Article I]

                                       3
<PAGE>

                                   ARTICLE II

                                  ORGANIZATION

     Section 2.01.  Name.  The Trust created hereby shall be known as "Household
                    ----
Credit Card Master Note Trust I," in which name the Trust or Owner Trustee on
behalf of the Trust may conduct the business of the Trust, make and execute
contracts and other instruments on behalf of the Trust and sue and be sued.

     Section 2.02.  Office.  The office of the Trust shall be in care of the
                    ------
Owner Trustee at the Corporate Trust Office or at such other address in the
State of Delaware as the Owner Trustee may designate by written notice to the
Owner, the Indenture Trustee and the Transferor.

     Section 2.03.  Purpose and Powers.  The purpose of the Trust is to engage
                    ------------------
in the following activities:

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

          (ii)      with the proceeds of the sale of the Notes and the
     Certificates, to acquire the Receivables and to pay the Transferor the
     amounts owed pursuant to Section 2.01 of the Transfer and Servicing
     Agreement;

          (iii)     to assign, grant, pledge and mortgage the Trust Estate
     pursuant to the Indenture and to hold, manage and distribute to the
     Transferor and the Owner or the Noteholders pursuant to the terms of this
     Agreement and the Transaction Documents any portion of the Trust Estate
     released from the lien of, and remitted to the Trust pursuant to, the
     Indenture;

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

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

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

     The Trust shall not engage in any activity other than in connection with
the foregoing or other than as required or authorized by the terms of this
Agreement or the Transaction Documents.

     Section 2.04.  Appointment of Owner Trustee.  The Transferor hereby
                    ----------------------------
appoints the Owner Trustee as trustee of the Trust effective as of the date
hereof, to have all the rights, powers and duties set forth herein.

     Section 2.05.  Initial Capital Contribution of Trust Estate.  The
                    --------------------------------------------
Transferor hereby  assigns, transfers, conveys and sets over to the Owner
Trustee, as of the date hereof, the sum of $1.  The Owner Trustee hereby
acknowledges receipt in trust from the Transferor, as of the date hereof, of the
foregoing

                                       4
<PAGE>

contribution, which shall constitute the initial Trust Estate and shall be held
by the Owner Trustee. The Transferor shall pay organizational expenses of the
Trust as they may arise or shall, upon the request of the Owner Trustee,
promptly reimburse the Owner Trustee for any such expenses paid by the Owner
Trustee.

     Section 2.06.  Declaration of Trust.  The Owner Trustee hereby declares
                    --------------------
that it will hold the Trust Estate in trust upon and subject to the conditions
set forth herein for the use and benefit of the Transferor, subject to the
obligations of the Trust under the Transaction Documents to which it is a party.
It is the intention of the parties hereto that the Trust constitute a business
trust under the Business Trust Statute and that this Agreement, together with
the Transfer and Servicing Agreement, constitute the governing instrument of
such business trust.  It is the intention of the parties hereto that, for income
and franchise tax purposes, the Trust shall be treated as a security device and
disregarded as an entity and its assets shall be treated as owned in whole by
the Transferor.  The parties hereto agree that they will take no action contrary
to the foregoing intention.  Effective as of the date hereof, the Owner Trustee
shall have all rights, powers and duties set forth herein and, to the extent not
inconsistent herewith, in the Business Trust Statute with respect to
accomplishing the purposes of the Trust.

     Section 2.07.  Title to Trust Property.  Legal title to all the Trust
                    -----------------------
Estate shall be vested at all times in the Trust as a separate legal entity
except where applicable law in any jurisdiction requires title to any part of
the Trust Estate to be vested in a trustee or trustees, in which case title
shall be deemed to be vested in the Owner Trustee, a co-trustee and/or a
separate trustee, as the case may be.

     Section 2.08.  Situs of Trust.  The Trust will be located and administered
                    --------------
in the State of Delaware. All bank accounts maintained by the Owner Trustee on
behalf of the Trust shall be located in the State of Delaware or the State of
New York.  The Trust shall not have any employees in any state other than
Delaware; provided, however, that nothing herein shall restrict or prohibit the
Owner Trustee from having employees within or without the State of Delaware.
Payments will be received by the Trust only in Delaware or New York, and
payments will be made by the Trust only from Delaware or New York.  The only
office of the Trust will be at the Corporate Trust Office in Delaware.

     Section 2.09.  Representations and Warranties of Transferor.  The
                    --------------------------------------------
Transferor hereby represents and warrants to the Owner Trustee that:

     (a) The Transferor is a Delaware corporation duly organized and validly
existing in good standing under the laws of the State of Delaware and has full
corporate power and authority to own its properties and to conduct its business
as such properties are presently owned and such business is presently conducted,
and to execute, deliver and perform its obligations under this Agreement and any
other document related hereto to which it is a party and to perform its
obligations as contemplated hereby and thereby.

     (b) The Transferor is duly qualified to do business and is in good standing
(or is exempt from such requirement) in any state required in order to conduct
its business, and has obtained all necessary licenses and approvals with respect
to the Transferor, in each jurisdiction in which failure to so qualify or to
obtain such licenses and approvals would have a material adverse effect on its
ability to perform its obligations under this Agreement or any other document
related hereto to which the Transferor is a party.

     (c) The execution and delivery of this Agreement and the consummation of
the transactions provided for in this Agreement and in the other Transaction
Documents to which the Transferor is a party have been duly authorized by the
Transferor by all necessary corporate action on its part and each of this
Agreement and the other Transaction Documents to which the Transferor is a party
will remain, from the time of its execution, an official record of the
Transferor; the Transferor has the power and authority to

                                       5
<PAGE>

assign the property to be assigned to and deposited with the Trust pursuant to
Section 2.05 of this Agreement and Section 2.01 of the Transfer and Servicing
Agreement.

     (d) The execution and delivery of this Agreement, the performance of the
transactions contemplated by this Agreement and the fulfillment of the terms
hereof will not conflict with, result in any breach of any of the material terms
and provisions of, or constitute (with or without notice or lapse of time or
both) a material default under, any indenture, contract, agreement, mortgage,
deed of trust or other instrument to which the Transferor is a party or by which
it or any of its properties are bound (other than violations of such indentures,
contracts, agreements, mortgages, deeds of trust or other instruments which,
individually or in the aggregate, would not have a material adverse effect on
the Transferor's ability to perform its obligations under this Agreement).

     (e) The execution and delivery of this Agreement, the performance of the
transactions contemplated by this Agreement and the fulfillment of the terms
hereof will not conflict with or violate any Requirements of Law applicable to
the Transferor.

     (f) There are no proceedings or investigations pending or, to the best
knowledge of the Transferor, threatened against the Transferor before any court,
regulatory body, administrative agency, or other tribunal or governmental
instrumentality having jurisdiction over the Transferor (i) asserting the
invalidity of any of the Transaction Documents to which the Transferor is a
party, (ii) seeking to prevent the consummation of any of the transactions
contemplated by any of the Transaction Documents to which the Transferor is a
party, (iii) seeking any determination or ruling that, in the reasonable
judgment of the Transferor, would materially and adversely affect the
performance by the Transferor of its obligations under the Transaction Documents
to which the Transferor is a party, or (iv) seeking any determination or ruling
that would materially and adversely affect the validity or enforceability of the
Transaction Documents to which the Transferor is a party.

     Section 2.10.  Liability of Certificateholders.  The holders of the
                    -------------------------------
Ownership Interest Certificate, the Transferor Certificates and any Supplemental
Certificates shall be entitled to the same limitation of personal liability
extended to stockholders of private corporations for profit organized under the
general corporation law of the State of Nevada.

                              [End of Article II]

                                       6
<PAGE>

                                  ARTICLE III

                                  CERTIFICATES

     Section 3.01.  Initial Ownership.  Upon the formation of the Trust by the
                    -----------------
contribution pursuant to Section 2.05, the Transferor shall be the sole
beneficial Owner of the Trust.

     Section 3.02.  Form of Certificates.  (a) The Ownership Interest
                    --------------------
Certificate shall be issued in registered form in substantially the form
attached hereto as Exhibit A and initially registered as provided in Annex 1 to
                   ---------
Exhibit A. The Transferor or any Additional Transferor may elect at any time, by
---------
written notice to the Trustee, to have its interest in the Transferor's Interest
be (i) an uncertificated interest or (ii) evidenced by a certificate.  The
Transferor Certificate, if certificated, will be issued in registered form,
substantially in the form of Exhibit B, and shall upon issue, be executed and
                             ---------
delivered by the Transferor to the Trustee for authentication and redelivery as
provided in Section 3.03.  If the Transferor or any Additional Transferor elects
to have its interest in the Transferor's Interest be uncertificated, it shall
deliver to the Trustee for cancellation any Transferor Certificate or
Supplemental Certificate, as the case may be, previously issued and the Trustee
shall make appropriate entries in its books and records to evidence such
uncertificated interest in the Transferor's Interest. The Trustee shall keep
with the books and records of the Trust a register, in book-entry form, of each
Person owning any uncertificated interest in the Transferor's Interest. The
Transferor Certificate, if in certificated form, shall be a single certificate
and shall initially represent the entire Transferor's Interest.

     (b) The Certificates shall be executed by manual or facsimile signature of
the Owner Trustee.  The Certificates bearing the manual or facsimile signatures
of individuals who were, at the time when such signatures shall have been
affixed, authorized to sign on behalf of the Trust, shall, when duly
authenticated pursuant to Section 3.03, be validly issued and entitled to the
benefits of this Agreement, notwithstanding that such individuals or any of them
shall have ceased to be so authorized prior to the authentication and delivery
of the Certificates or did not hold such offices at the date of authentication
and delivery of the Certificates.

     Section 3.03.  Authentication of Certificates.  On the Closing Date, the
                    ------------------------------
Owner Trustee shall authenticate and deliver the Ownership Interest Certificate
and the Transferor Certificate upon the written order of the Transferor, signed
by its chairman of the board, its president, any vice president, secretary, any
assistant treasurer or any authorized signatory, without further corporate
action by the Transferor. No Certificate shall be entitled to any benefit under
this Agreement, or be valid for any purpose, unless there appears on such
Certificate a certificate of authentication substantially in the form provided
for herein, executed by or on behalf of the Owner Trustee by the manual
signature of a duly authorized signatory, and such certificate upon any
Certificate shall be conclusive evidence, and the only evidence, that such
Certificate has been duly authenticated and delivered hereunder.  Each
Certificate shall be dated the date of its authentication.

     Section 3.04.  Restrictions on Transfer.  To the fullest extent permitted
                    ------------------------
by applicable law, the Certificates (or any interest therein) may not be sold,
transferred, assigned, participated, pledged or otherwise disposed of to any
Person; provided, however, that a Certificate (or any interest therein) may be
sold, transferred, assigned, participated, pledged or otherwise disposed of if
the transferor has thereof provided the Owner Trustee and the Indenture Trustee
with a Tax Opinion relating to such sale, transfer, assignment, participation,
pledge or other disposition.

     Section 3.05.  Mutilated, Destroyed, Lost or Stolen Certificate. If (a) any
                    ------------------------------------------------
mutilated Certificate is surrendered to the Owner Trustee, or the Owner Trustee
receives evidence to its reasonable satisfaction of the destruction, loss or
theft of any Certificate, and (b) there is delivered to the Owner Trustee such

                                       7
<PAGE>

security or indemnity as may be required by it to hold the Owner Trustee
harmless, then, in the absence of notice to the Owner Trustee that such
Certificate has been acquired by a bona fide purchaser, the Owner Trustee on
behalf of the Trust shall execute, and the Owner Trustee shall authenticate and
deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or
stolen Certificate, a replacement Certificate of like tenor (including the same
date of issuance) and denomination. Upon the issuance of any replacement
Certificate under this Section, the Owner Trustee may require the payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in relation thereto and any other reasonable expenses connected therewith. Every
replacement Certificate issued pursuant to this Section in replacement of any
mutilated, destroyed, lost or stolen Certificate shall constitute complete and
indefeasible evidence of an interest in the Trust, as if originally issued,
whether or not the mutilated, destroyed, lost or stolen Certificate shall be
found at any time.

     Section 3.06.  Issuance of New Transferor Certificates.  (a) Taken
                    ---------------------------------------
together, the Transferor Certificates shall represent the ownership interest in
the Trust Assets not allocated pursuant to the Transaction Documents to the
Noteholders' Collateral, including the right to receive Collections with respect
to the Receivables and other amounts at the times and in the amounts specified
in any Indenture Supplement to be paid to the Transferor on behalf of all
holders of the Transferor Certificates (the "Transferor's Interest") and the
                                             ---------------------
other Trust Assets subject to the lien of the Indenture; provided, however, that
the Transferor Certificates shall represent an interest in the Collection
Account, any Series Account or any Series Enhancement, subject to the lien of
the Notes and only as specifically provided in the Transfer and Servicing
Agreement, the Indenture, or any Indenture Supplement.

     (b) In connection with the issuance of a new Series of Investor
Certificates, the designation of an Additional Transferor pursuant to 2.09(g) of
the Transfer and Servicing Agreement or at any other time, a Transferor may
surrender its Transferor Certificate to the Trustee in exchange for a newly
issued Transferor Certificate and a second certificated or uncertificated
interest in the Transferor's Interest (a "Supplemental Certificate"), the terms
                                          ------------------------
of which shall be defined in a supplement (a "Transferor Certificate
                                              ----------------------
Supplement") to this Agreement (which Transferor Certificate Supplement shall be
----------
subject to Section 13.01 to the extent that it amends any of the terms of this
Agreement); to be delivered to or upon the order of the Transferor (or the
Holder of a Supplemental Certificate, in the case of the transfer and exchange
thereof); provided, however, notwithstanding anything contained herein, any
exchange of a certificated Transferor Certificate for an uncertificated
Transferor Certificate or an uncertificated Transferor Certificate for a
certificated Transferor Certificate by the Holder of such Transferor Certificate
shall not be subject to the conditions set forth in clauses (i) through (vi)
below.  Except as set forth in the proviso to the immediately preceding
sentence, the issuance of any such Investor Certificates or Supplemental
Certificate shall be subject to satisfaction of the following conditions:

          (i)       on or before the fifth day immediately preceding the
     Transferor Certificate surrender and exchange, the Transferor shall have
     given the Owner Trustee, the Servicer, the Indenture Trustee and each
     Rating Agency notice (unless such notice requirement is otherwise waived)
     of such Transferor Certificate surrender and exchange;

          (ii)      the Transferor shall have delivered to the Owner Trustee and
     the Indenture Trustee any related Transferor Certificate Supplement in form
     satisfactory to the Owner Trustee and the Indenture Trustee, executed by
     each party hereto (other than the Owner Trustee, the Indenture Trustee and
     the Holder of the Supplemental Certificate, if any);

          (iii)     the Rating Agency Condition shall have been satisfied with
     respect to such Transferor Certificate surrender and exchange;

                                       8
<PAGE>

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

          (v)    the Transferor shall have delivered to the Owner Trustee and
     Indenture Trustee (with a copy to each Rating Agency) a Tax Opinion, dated
     the date of such surrender and exchange with respect to such surrender and
     exchange; and

          (vi)   the aggregate amount of Principal Receivables plus the
     principal amount of any Participation Interest theretofore conveyed to the
     Trust as of the date of such surrender and exchange shall be greater than
     the Required Minimum Principal Balance as of the date of such surrender and
     exchange after giving effect to such surrender and exchange.

     (c)  Any Supplemental Certificate held by any Person, may be transferred or
exchanged only upon the delivery to the Trustee of a Tax Opinion dated as of the
date of such transfer or exchange, as the case may be, with respect to such
transfer or exchange.

                              [End of Article III]

                                       9
<PAGE>

                                   ARTICLE IV

                            ACTIONS BY OWNER TRUSTEE

     Section 4.01.  Prior Notice to Owner and Transferor with Respect to Certain
                    ------------------------------------------------------------
Matters.  With respect to the following matters, unless otherwise instructed by
-------
the Transferor, the Owner Trustee shall not take action unless at least thirty
(30) days before the taking of such action the Owner Trustee shall have notified
the Transferor:

     (a) the initiation of any claim or lawsuit by the Trust (other than an
action to collect on the Trust Estate) and the settlement of any action, claim
or lawsuit brought by or against the Trust (other than an action to collect on
the Trust Estate);

     (b) the election by the Trust to file an amendment to the Certificate of
Trust;

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

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

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

     (f) the appointment pursuant to the Indenture of a replacement or successor
Note Registrar or Indenture Trustee, or the consent to the assignment by the
Note Registrar, Administrator or Indenture Trustee of its obligations under the
Indenture.

     Section 4.02.  Restrictions on Power.  The Owner Trustee shall not be
                    ---------------------
required to take or refrain from taking any action if such action or inaction
would be contrary to any obligation of the Trust or the Owner Trustee under any
of the Transaction Documents or would be contrary to Section 2.03.

                              [End of Article IV]

                                      10
<PAGE>

                                   ARTICLE V

                     AUTHORITY AND DUTIES OF OWNER TRUSTEE

     Section 5.01.  General Authority.  The Owner Trustee is authorized and
                    -----------------
directed to execute and deliver the Transaction Documents to which the Trust is
to be a party and each certificate or other document attached as an exhibit to
or contemplated by the Transaction Documents to which the Trust is to be a
party, or any amendment thereto or other agreement, in each case, in such form
as the Transferor shall approve as evidenced conclusively by the Owner Trustee's
execution thereof and the Transferor's execution of the related documents.  In
addition to the foregoing, the Owner Trustee is authorized, but shall not be
obligated, to take all actions required of the Trust pursuant to the Transaction
Documents.  The Owner Trustee is further authorized from time to time to take
such action as the Transferor or the Administrator directs in writing with
respect to the Transaction Documents.

     Section 5.02.  General Duties.  It shall be the duty of the Owner Trustee
                    --------------
to discharge (or cause to be discharged) all of its responsibilities pursuant to
the terms of this Agreement and the other Transaction Documents to which the
Trust is a party and to administer the Trust in the interest of the Transferor,
subject to the Transaction Documents and in accordance with the provisions of
this Agreement.  Notwithstanding the foregoing, the Owner Trustee shall be
deemed to have discharged its duties and responsibilities hereunder and under
the other Transaction Documents to the extent the Administrator has agreed in
the Administration Agreement to perform any act or to discharge any duty of the
Owner Trustee or the Trust under any Transaction Document, and the Owner Trustee
shall not be liable for the default or failure of the Administrator to carry out
its obligations under the Administration Agreement.

     Section 5.03.  Action Upon Instruction.
                    -----------------------

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

     (b) Whenever the Owner Trustee is unable to decide between alternative
courses of action permitted or required by the terms of any Transaction
Document, the Owner Trustee shall promptly give notice (in such form as shall be
appropriate under the circumstances) to the Owner requesting instruction as to
the course of action to be adopted, and to the extent the Owner Trustee acts in
good faith in accordance with any written instruction of the Transferor
received, the Owner Trustee shall not be liable on account of such action to any
Person.  If the Owner Trustee shall not have received appropriate instruction
within ten (10) days of such notice (or within such shorter period of time as
reasonably may be specified in such notice or may be necessary under the
circumstances) it may, but shall be under no duty to, take or refrain from
taking such action, not in violation of the Transaction Documents, as it shall
deem to be in the best interest of the Transferor, and shall have no liability
to any Person for such action or inaction.

     (c) In the event that the Owner Trustee is unsure as to the application of
any provision of any Transaction Document or any such provision is ambiguous as
to its application, or is, or appears to be, in conflict with any other
applicable provision, or in the event that this Agreement permits any
determination by the Owner Trustee or is silent or is incomplete as to the
course of action that the Owner Trustee is required to take with respect to a
particular set of facts, the Owner Trustee may give notice (in such form as
shall be appropriate under the circumstances) to the Transferor requesting
instruction and, to the extent that the Owner Trustee acts or refrains from
acting in good faith in accordance with any such

                                      11
<PAGE>

instruction received, the Owner Trustee shall not be liable, on account of such
action or inaction, to any Person. If the Owner Trustee shall not have received
appropriate instruction within ten (10) days of such notice (or within such
shorter period of time as reasonably may be specified in such notice or may be
necessary under the circumstances) it may, but shall be under no duty to, take
or refrain from taking such action, not in violation of the Transaction
Documents, as it shall deem to be in the best interests of the Transferor, and
shall have no liability to any Person for such action or inaction.

     Section 5.04.  No Duties Except as Specified in this Agreement or in
                    -----------------------------------------------------
Instructions.  The Owner Trustee shall not have any duty or obligation to
------------
manage, make any payment with respect to, register, record, sell, dispose of, or
otherwise deal with the Trust or the Trust Estate, or to otherwise take or
refrain from taking any action under, or in connection with, any document
contemplated hereby to which the Trust is a party, except as expressly provided
by the terms of this Agreement or in any document or written instruction
received by the Owner Trustee pursuant to Section 5.03; and no implied duties or
obligations shall be read into any Transaction Document against the Owner
Trustee.  The Owner Trustee shall have no responsibility for any filing or
recording, including filing any financing or continuation statement in any
public office at any time or to otherwise perfect or maintain the perfection of
any security interest or lien granted to it hereunder or to prepare or file any
Commission filing for the Trust or to record any Transaction Document.  The
Owner Trustee nevertheless agrees that it will, at its own cost and expense,
promptly take all action as may be necessary to discharge any liens on any part
of the Trust Estate that result from actions by, or claims against, the Owner
Trustee in its individual capacity that are not related to the ownership or the
administration of the Trust Estate or the transactions contemplated by the
Transaction Documents.

     Section 5.05.  No Action Except under Specified Documents or Instructions.
                    ----------------------------------------------------------
The Trustee shall not manage, control, use, sell, dispose of or otherwise deal
with any part of the Trust Estate except (a) in accordance with the powers
granted to and the authority conferred upon the Owner Trustee pursuant to this
Agreement, (b) in accordance with the Transaction Documents and (c) in
accordance with any document or instruction delivered to the Owner Trustee
pursuant to Section 5.03.

     Section 5.06.  Restrictions.  The Owner Trustee shall not take any action
                    ------------
(a) that, to the actual knowledge of the Owner Trustee, would violate the
purposes of the Trust set forth in Section 2.03 or (b) that, to the actual
knowledge of the Owner Trustee, would result in the Trust's becoming taxable as
a corporation for federal income tax purposes.  The Transferor shall not direct
the Owner Trustee to take action that would violate the provisions of this
Section.

     Section 5.06.  [Reserved].
                    ----------

                               [End of Article V]

                                      12
<PAGE>

                                   ARTICLE VI

                          CONCERNING THE OWNER TRUSTEE

     Section 6.01  Acceptance of Trusts and Duties.  The Owner Trustee accepts
                   -------------------------------
the trusts hereby created and agrees to perform its duties hereunder with
respect to such trusts, but only upon the terms of this Agreement.  The Owner
Trustee also agrees to disburse all moneys actually received by it constituting
part of the Trust Estate upon the terms of the Transaction Documents.  The Owner
Trustee shall not be answerable or accountable under any Transaction Document
under any circumstances, except (i) for its own willful misconduct or negligence
or (ii) in the case of the inaccuracy of any representation or warranty
contained in Section 6.03 expressly made by the Owner Trustee in its individual
capacity.  In particular, but not by way of limitation (and subject to the
exceptions set forth in the preceding sentence):

     (a) the Owner Trustee shall not be liable for any error of judgment made in
good faith by the Owner Trustee;

     (b) the Owner Trustee shall not be liable with respect to any action taken
or omitted to be taken by it in accordance with the instructions of the
Administrator or the Transferor;

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

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

     (e) the Owner Trustee shall not be responsible for or in respect of the
validity or sufficiency of this Agreement or for the due execution hereof by the
Transferor or for the form, character, genuineness, sufficiency, value or
validity of any of the Trust Estate or for or in respect of the validity or
sufficiency of the Transaction Documents, other than the genuineness of the
signature on the certificate of authentication on the Certificates, and the
Owner Trustee shall in no event assume or incur any liability, duty, or
obligation to any Noteholder or to the Owner, other than as expressly provided
for herein or expressly agreed to in the other Transaction Documents;

     (f) the Owner Trustee shall not be liable for the default or misconduct of
the Transferor, the Servicer, the Administrator or the Indenture Trustee under
any of the Transaction Documents or otherwise, and the Owner Trustee shall have
no obligation or liability to perform the obligations of the Trust under the
Transaction Documents, including those that are required to be performed by the
Administrator under the Administration Agreement, the Indenture Trustee under
the Indenture or the Servicer under the Transfer and Servicing Agreement;

     (g) the Owner Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Agreement, or to institute, conduct or
defend any litigation under this Agreement or otherwise or in relation to this
Agreement or any other Transaction Document, at the request, order or direction
of the Transferor, unless the Transferor has offered to the Owner Trustee
security or indemnity satisfactory to it against the costs, expenses and
liabilities that may be incurred by the Owner Trustee therein or thereby.  The
right of the Owner Trustee to perform any discretionary act enumerated in this
Agreement or any other Transaction Document shall not be construed as a duty,
and the Owner Trustee

                                      13
<PAGE>

shall not be answerable for, other than its negligence or willful misconduct in
the performance of, any such act; and

     (h) Notwithstanding anything contained herein to the contrary, the Owner
Trustee shall not be required to take any action in any jurisdiction other than
in the State of Delaware if the taking of such action will (i) require the
registration with, licensing by or the taking of any other similar action in
respect of, any state or other governmental authority or agency of any
jurisdiction other than the State of Delaware by or with respect to the Owner
Trustee; (ii) result in any fee, tax or other governmental charge under the laws
of any jurisdiction or any political subdivisions thereof in existence on the
date hereof other than the State of Delaware becoming payable by the Owner
Trustee; or (iii) subject the Owner Trustee to personal jurisdiction in any
jurisdiction other than the State of Delaware for causes of action arising from
acts unrelated to the consummation of the transactions by the Owner Trustee
contemplated hereby.  The Owner Trustee shall be entitled to obtain advice of
counsel (which advice shall be an expense of the Transferor) to determine
whether any action required to be taken pursuant to the Agreement results in the
consequences described in clauses (i), (ii) and (iii) of the preceding sentence.
In the event that said counsel advises the Owner Trustee that such action will
result in such consequences, the Transferor shall appoint an additional trustee
pursuant to Section 9.05 hereof to proceed with such action.

     Section 6.02.  Furnishing of Documents.  The Owner Trustee shall furnish to
                    -----------------------
the Transferor and the Indenture Trustee, promptly upon written request
therefor, duplicates or copies of all reports, notices, requests, demands,
certificates, financial statements and any other instruments furnished to the
Owner Trustee under the Transaction Documents.

     Section 6.03.  Representations and Warranties.  The Owner Trustee hereby
                    ------------------------------
represents and warrants to the Transferor that:

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

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

     (c) Neither the execution nor the delivery by it of this Agreement, nor the
consummation by it of the transactions contemplated hereby nor compliance by it
with any of the terms or provisions hereof will contravene any federal or
Delaware law, governmental rule or regulation governing the banking or trust
powers of the Owner Trustee or any judgment or order binding on it, or
constitute any default under its charter documents or by-laws or any indenture,
mortgage, contract, agreement or instrument to which it is a party or by which
any of its properties may be bound.

     Section 6.04.  Reliance; Advice of Counsel.
                    ---------------------------

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

                                      14
<PAGE>

hereof rely on a certificate, signed by the president or any vice president or
by the treasurer or other authorized officers of the relevant party, as to such
fact or matter, and such certificate shall constitute full protection to the
Owner Trustee for any action taken or omitted to be taken by it in good faith in
reliance thereon.

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

     Section 6.05.  Not Acting in Individual Capacity.  Except as expressly
                    ---------------------------------
provided in this Article VI, in accepting the trusts hereby created Wilmington
Trust Company acts solely as Owner Trustee hereunder and not in its individual
capacity, and all Persons having any claim against the Owner Trustee by reason
of the transactions contemplated by any Transaction Document shall look only to
the Trust Estate for payment or satisfaction thereof.

     Section 6.06.  Owner Trustee Not Liable for Certificates, Notes or
                    ---------------------------------------------------
Receivables.  The recitals contained herein and in the Certificates (other than
-----------
the genuineness of the signature and counter-signature of the Owner Trustee on
the Certificates and its representations and warranties in Section 6.03) shall
be taken as the statements of the Transferor, and the Owner Trustee assumes no
responsibility for the correctness thereof.  The Owner Trustee makes no
representations as to the validity or sufficiency of this Agreement, any other
Transaction Document or the Certificates (other than the genuineness of the
signature and counter-signature of the Owner Trustee on the Certificates), the
Notes, or related documents.  The Owner Trustee shall at no time have any
responsibility or liability for or with respect to the legality, validity and
enforceability of the Receivables or the perfection and priority of any security
interest in the Receivables or the maintenance of any such perfection and
priority, or for or with respect to the sufficiency of the Trust Estate or its
ability to generate the payments to be distributed to the Noteholders under the
Indenture, including, without limitation:  the existence, condition and
ownership of the Receivables; the existence and contents of the Receivables on
any computer or other record thereof; the validity of the assignment of the
Receivables to the Trust or of any intervening assignment; the completeness of
the Receivables; the performance or enforcement of the Receivables; the
compliance by the Transferor with any warranty or representation made under any
Transaction Document or in any related document or the accuracy of any such
warranty or representation or any action of the Administrator, the Servicer or
the Indenture Trustee taken in the name of the Owner Trustee.

     Section 6.07.  Owner Trustee May Own Notes.  The Owner Trustee in its
                    ---------------------------
individual or any other capacity may become the owner or pledgee of Notes and
may deal with the Transferor, the Administrator, the Servicer and the Indenture
Trustee in banking transactions with the same rights as it would have if it were
not Owner Trustee.

                              [End of Article VI]

                                      15
<PAGE>

                                  ARTICLE VII

                         COMPENSATION OF OWNER TRUSTEE

     Section 7.01.  Owner Trustee's Fees and Expenses.  The Trust Company shall
                    ---------------------------------
receive as compensation for its services hereunder such fees as have been
separately agreed upon before the date hereof between the Transferor and the
Trust Company, and the Trust Company shall be entitled to be reimbursed by the
Transferor for its other reasonable expenses hereunder, including the reasonable
compensation, expenses and disbursements of such agents, representatives,
experts and counsel as the Owner Trustee may employ in connection with the
exercise and performance of its rights and its duties hereunder; provided,
however, that the Owner Trustee's right to enforce such obligation shall be
subject to the provisions of Section 10.08.

     Section 7.02.  Indemnification. To the fullest extent permitted by law, the
                    ---------------
Transferor shall be liable as primary obligor for, and shall indemnify the Trust
Company and its successors, assigns, agents, employees and servants
(collectively, the "Indemnified Parties") from and against, any and all
                    -------------------
liabilities, obligations, losses, damages, taxes, claims, actions and suits, and
any and all reasonable costs, expenses and disbursements (including reasonable
legal fees and expenses) of any kind and nature whatsoever (collectively,
"Expenses") which may at any time be imposed on, incurred by, or asserted
 --------
against the Owner Trustee or any Indemnified Party in any way relating to or
arising out of the Transaction Documents, the Trust Estate, the acceptance and
administration of the Trust Estate or the action or inaction of the Owner
Trustee hereunder; provided that the Transferor shall not be liable for or
required to indemnify any Indemnified Party from and against Expenses arising or
resulting from any of the matters described in the third sentence of Section
6.01; provided further, that the Transferor shall not be liable for or required
to indemnify an Indemnified Party from and against expenses arising or resulting
from (i) the Indemnified Party's own willful misconduct, bad faith or
negligence, or (ii) the inaccuracy of any representation or warranty contained
in Section 6.03 made by the Indemnified Party.  An Indemnified Party's right to
enforce such obligation shall be subject to the provisions of Section 10.08.
The indemnities contained in this Section 7.02 shall survive the resignation or
termination of the Owner Trustee or the termination of this Agreement.  In the
event of any claim, action or proceeding for which indemnity will be sought
pursuant to this Section 7.02, the Owner Trustee's choice of legal counsel shall
be subject to the approval of the Transferor, which approval shall not be
unreasonably withheld.

     Section 7.03.  Payments to the Owner Trustee.  Any amounts paid to an
                    -----------------------------
Indemnified Party pursuant to this Article VII shall be deemed not to be a part
of the Trust Estate immediately after such payment.

                              [End of Article VII]

                                      16
<PAGE>

                                  ARTICLE VIII

                         TERMINATION OF TRUST AGREEMENT

     Section 8.01.  Termination of Trust Agreement.
                    ------------------------------

     (a) The Trust shall dissolve upon the earlier of (i) January 1, 20__, and
(ii) at the option of the Transferor, the day following the day on which the
right of all series of Notes to receive payments from the Trust has terminated
(the "Trust Termination Date").  Any money or other property held as part of the
      ----------------------
Trust Estate following such distribution shall be distributed to the Transferor.
The bankruptcy, liquidation, dissolution, termination, death or incapacity of
the Transferor shall not (x) operate to terminate this Agreement or the Trust,
or (y) entitle the Transferor's legal representatives or heirs to claim an
accounting or to take any action or proceeding in any court for a partition or
winding up of all or any part of the Trust or Trust Estate or (z) otherwise
affect the rights, obligations and liabilities of the parties hereto.

     Except as provided in subsection 8.01(a), the Transferor shall not be
entitled to revoke or terminate the Trust.

     Upon the winding up of the Trust in accordance with the Business Trust
Statute, the Owner Trustee shall cause the Certificate of Trust to be canceled
by filing a certificate of cancellation with the Secretary of State in
accordance with the provisions of Section 3810 of the Business Trust Statute and
thereupon the Trust and this Agreement (other than Article VII) shall terminate.

                             [End of Article VIII]

                                      17
<PAGE>

                                   ARTICLE IX

             SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

     Section 9.01.  Eligibility Requirements for Owner Trustee.  The Owner
                    ------------------------------------------
Trustee shall at all times be a corporation satisfying the provisions of Section
3807(a) of the Business Trust Statute; authorized to exercise corporate trust
powers; having a combined capital and surplus of at least $50,000,000 and
subject to supervision or examination by federal or state authorities; and
having (or having a parent which has) a rating of at least Baa3 by Moody's, at
least BBB- by Standard & Poor's and, if rated by Fitch, at least BBB- by Fitch,
or otherwise satisfactory to each Rating Agency.  If such corporation shall
publish reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the
purpose of this Section, the combined capital and surplus of such corporation
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published.  In case at any time the Owner Trustee
shall cease to be eligible in accordance with the provisions of this Section,
the Owner Trustee shall resign immediately in the manner and with the effect
specified in Section 9.02.

     Section 9.02.  Resignation or Removal of Owner Trustee.  The Owner Trustee
                    ---------------------------------------
may at any time resign and be discharged from the trusts hereby created by
giving written notice thereof to the Administrator; provided, however, that such
resignation and discharge shall only be effective upon the appointment of a
successor Owner Trustee.  Upon receiving such notice of resignation, the
Administrator shall promptly appoint a successor Owner Trustee by written
instrument, in duplicate, one copy of which instrument shall be delivered to the
resigning Owner Trustee and one copy to the successor Owner Trustee.  If no
successor Owner Trustee shall have been so appointed and have accepted
appointment within 30 days after the giving of such notice of resignation, the
resigning Owner Trustee may petition any court of competent jurisdiction for the
appointment of a successor Owner Trustee.

     If at any time the Owner Trustee shall cease to be eligible in accordance
with the provisions of Section 9.01 and shall fail to resign after written
request therefor by the Administrator, or if at any time the Owner Trustee shall
be legally unable to act, or shall be adjudged bankrupt or insolvent, or a
receiver of the Owner Trustee or of its property shall be appointed, or any
public officer shall take charge or control of the Owner Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation, then the Administrator may, but shall not be required to, remove
the Owner Trustee.  If the Administrator shall remove the Owner Trustee under
the authority of the immediately preceding sentence, the Administrator shall
promptly (i) appoint a successor Owner Trustee by written instrument, in
duplicate, one copy of which instrument shall be delivered to the outgoing Owner
Trustee so removed and one copy to the successor Owner Trustee and (ii) pay all
fees owed to the outgoing Owner Trustee.

     Any resignation or removal of the Owner Trustee and appointment of a
successor Owner Trustee pursuant to any of the provisions of this Section shall
not become effective until acceptance of appointment by the successor Owner
Trustee pursuant to Section 9.03 and payment of all fees and expenses owed to
the outgoing Owner Trustee.  The Administrator shall provide notice of such
resignation or removal of the Owner Trustee to each Note Rating Agency.

     Section 9.03.  Successor Owner Trustee.  Any successor Owner Trustee
                    -----------------------
appointed pursuant to Section 9.02 shall execute, acknowledge and deliver to the
Administrator and to its predecessor Owner Trustee an instrument accepting such
appointment under this Agreement, and thereupon the resignation or removal of
the predecessor Owner Trustee shall become effective and such successor Owner
Trustee, without any further act, deed or conveyance, shall become fully vested
with all the rights, powers, duties, and obligations of its predecessor under
this Agreement, with like effect as if originally named as Owner Trustee.  The
predecessor Owner Trustee shall upon payment of its fees and expenses deliver to
the

                                      18
<PAGE>

successor Owner Trustee all documents and statements and monies held by it under
this Agreement; and the Administrator and the predecessor Owner Trustee shall
execute and deliver such instruments and do such other things as may reasonably
be required for fully and certainly vesting and confirming in the successor
Owner Trustee all such rights, powers, duties, and obligations.

     No successor Owner Trustee shall accept appointment as provided in this
Section 9.03 unless at the time of such acceptance such successor Owner Trustee
shall be eligible pursuant to Section 9.01.

     Upon acceptance of appointment by a successor Owner Trustee pursuant to
this Section, the Administrator shall mail notice of such acceptance of
appointment including the name of such successor Owner Trustee to the
Transferor, the Indenture Trustee, the Noteholders and each Rating Agency.  If
the Administrator shall fail to mail such notice within ten (10) days after
acceptance of appointment by the successor Owner Trustee, the successor Owner
Trustee shall cause such notice to be mailed at the expense of the
Administrator.

     Upon acceptance of appointment by a successor Owner Trustee pursuant to
this Section 9.03, such successor Owner Trustee shall file an amendment to the
Certificate of Trust with the Secretary of State identifying the name and
principal place of business of such successor Owner Trustee in the State of
Delaware.

     Section 9.04.  Merger or Consolidation of Owner Trustee.  Notwithstanding
                    ----------------------------------------
anything herein to the contrary, any corporation into which the Owner Trustee
may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion or consolidation to which the
Owner Trustee shall be a party, or any corporation succeeding to all or
substantially all of the corporate trust business of the Owner Trustee, shall be
the successor of the Owner Trustee hereunder (provided that such corporation
shall meet the eligibility requirements set forth in Section 9.01), without the
execution or filing of any instrument or any further act on the part of any of
the parties hereto; provided, further, that (a) the Owner Trustee shall mail
                                     -
notice of such merger or consolidation to each Rating Agency and (b) the Owner
Trustee shall file any necessary amendments to the Certificate of Trust with the
Secretary of State.

     Section 9.05.  Appointment of Co-Trustee or Separate Trustee.
                    ---------------------------------------------
Notwithstanding any other provisions of this Agreement, at any time, for the
purpose of meeting any legal requirements of any jurisdiction in which any part
of the Trust Estate may at the time be located, the Administrator and the Owner
Trustee acting jointly shall have the power and shall execute and deliver all
instruments to appoint one or more Persons approved by each of the Administrator
and the Owner Trustee to act as co-trustee, jointly with the Owner Trustee, or
separate trustee or separate trustees, of all or any part of the Trust Estate,
and to vest in such Person, in such capacity, such title to the Trust, or any
part thereof, and, subject to the other provisions of this Section, such powers,
duties, obligations, rights and trusts as the Administrator and the Owner
Trustee may consider necessary or desirable.  If the Administrator shall not
have joined in such appointment within 15 days after the receipt by it of a
request so to do, the Owner Trustee alone shall have the power to make such
appointment.  No co-trustee or separate trustee under this Agreement shall be
required to meet the terms of eligibility as a successor trustee pursuant to
Section 9.01 and no notice of the appointment of any co-trustee or separate
trustee shall be required pursuant to Section 9.03.

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

          (i) all rights, powers, duties, and obligations conferred or imposed
     upon the Owner Trustee shall be conferred upon and exercised or performed
     by the Owner Trustee and such

                                      19
<PAGE>

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

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

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

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

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

                              [End of Article IX]

                                      20
<PAGE>

                                   ARTICLE X

                                 MISCELLANEOUS

     Section 10.01.  Supplements and Amendments.  This Agreement may be amended
                     --------------------------
from time to time, by a written amendment duly executed and delivered by the
Transferor and the Owner Trustee, with the written consent of the Indenture
Trustee, but without the consent of any of the Noteholders, to cure any
ambiguity, to correct or supplement any provisions in this Agreement or for the
purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions of this Agreement or modifying in any manner the rights of the
Noteholders; provided, however, that such amendment will not (i) as evidenced by
an Officer's Certificate of the Transferor addressed and delivered to the Owner
Trustee and the Indenture Trustee, materially and adversely affect the interest
of any Noteholder or the Owner and (ii) as evidenced by an Opinion of Counsel
addressed and delivered to the Owner Trustee and the Indenture Trustee, cause
the Trust to be classified as an association (or a publicly traded partnership)
taxable as a corporation for federal income tax purposes.  Additionally,
notwithstanding the preceding sentence, this Agreement will be amended by the
Transferor and the Owner Trustee without the consent of the Indenture Trustee or
any of the Noteholders to add, modify or eliminate such provisions as may be
necessary or advisable in order to enable all or a portion of the Trust (i) to
qualify as, and to permit an election to be made to cause the Trust to be
treated as, a "financial asset securitization investment trust" as described in
the provisions of Section 860L of the Code, and (ii) to avoid the imposition of
state or local income or franchise taxes imposed on the Trust's property or its
income; provided, however, that (i) the Transferor delivers to the Indenture
Trustee and the Owner Trustee an Officer's Certificate to the effect that the
proposed amendments meet the requirements set forth in this subsection, (ii)
each Rating Agency will have notified the Transferor, the Servicer, the
Indenture Trustee and the Owner Trustee in writing that the amendment will not
result in a reduction or withdrawal of the rating of any outstanding Series or
Class as to which it is a Rating Agency and (iii) such amendment does not affect
the rights, duties or obligations of the Owner Trustee hereunder.  The
amendments which the Transferor may make without the consent of Noteholders
pursuant to the preceding sentence may include, without limitation, the addition
of a sale of Receivables.

     This Agreement may also be amended from time to time by a written amendment
duly executed and delivered by the Transferor and the Owner Trustee, with prior
written notice to each Rating Agency, with the consent of the Indenture Trustee
and, the Holders of Notes evidencing not less than a majority of the Outstanding
Amount of the Notes, for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Agreement or of
modifying in any manner the rights of the Noteholders; provided, however, that
without the consent of all Noteholders, no such amendment shall (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 Outstanding Amount of the Notes, the
Holders of which are required to consent to any such amendment; provided
                                                                --------
further, such amendment shall be subject to delivery to the Indenture Trustee of
-------
a Tax Opinion.

     Promptly after the execution of any such amendment or consent, the
Transferor shall furnish written notification of the substance of such amendment
or consent to the Indenture Trustee and each Rating Agency.

     It shall not be necessary for the consent of the Noteholders pursuant to
this Section to approve the particular form of any proposed amendment or
consent, but it shall be sufficient if such consent shall approve the substance
thereof.

                                      21
<PAGE>

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

     The Owner Trustee shall be entitled to receive, and shall be fully
protected in relying upon, an Officer's Certificate of the Transferor or the
Administrator to the effect that the conditions to such Amendment have been
satisfied.

     The Owner Trustee may, but shall not be obligated to, enter into any such
amendment which affects the Owner Trustee's own rights, duties or immunities
under this Agreement or otherwise.

     Section 10.02.  No Legal Title to Trust Estate in Transferor.  The
                     --------------------------------------------
Transferor shall not have legal title to any part of the Trust Estate.  No
transfer, by operation of law or otherwise, of any right, title, and interest of
the Transferor to and in its beneficial ownership interest in the Trust Estate
shall operate to terminate this Agreement or the trusts hereunder or entitle any
transferee to an accounting or to the transfer to it of legal title to any part
of the Trust Estate.

     Section 10.03.  Limitations on Rights of Others.  The provisions of this
                     -------------------------------
Agreement are solely for the benefit of the Owner Trustee, the Transferor, the
Administrator and, to the extent expressly provided herein, the Indenture
Trustee and the Noteholders, and nothing in this Agreement, whether express or
implied, shall be construed to give to any other Person any legal or equitable
right, remedy or claim in the Trust Estate or under or in respect of this
Agreement or any covenants, conditions or provisions contained herein.

     Section 10.04.  Notices.  Unless otherwise expressly specified or permitted
                     -------
by the terms hereof, all notices shall be in writing and shall be deemed given
upon receipt by the intended recipient or three Business Days after mailing if
mailed by certified mail, postage prepaid (except that notice to the Owner
Trustee or Indenture Trustee shall be deemed given only upon actual receipt by
the Owner Trustee or Indenture Trustee), if to the Owner Trustee, addressed to
the Corporate Trust Office; if to the Indenture Trustee, addressed to [.], if to
the Transferor, addressed to [.], Attention: [.] or, as to each party, at such
other address as shall be designated by such party in a written notice to each
other party.

     Section 10.05.  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 10.06.  Separate Counterparts.  This Agreement may be executed by
                     ---------------------
the parties hereto in separate counterparts, each of which when so executed and
delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument.

     Section 10.07.  Successors and Assigns.  All covenants and agreements
                     ----------------------
contained herein shall be binding upon, and inure to the benefit of, the
Transferor and its permitted assignees, the Owner Trustee and its successors and
the Transferor and its successors and permitted assigns, all as herein provided.
Any request, notice, direction, consent, waiver or other instrument or action by
the Transferor shall bind the successors and assigns of the Transferor.

     Section 10.08.  Nonpetition Covenants.  Notwithstanding any prior
                     ---------------------
termination of the Trust or this Agreement, the Owner Trustee (not in its
individual capacity) shall not at any time with respect to the Trust or the
Transferor, acquiesce, petition or otherwise invoke or cause the Trust or the
Transferor to invoke the process of any court or governmental authority for the
purpose of commencing or sustaining a

                                      22
<PAGE>

case against the Trust or the Transferor under any federal or state bankruptcy,
insolvency or similar law or appointing a receiver, conservator, liquidator,
assignee, trustee, custodian, sequestrator or other similar official of the
Trust or the Transferor or any substantial part of its property, or ordering the
winding up or liquidation of the affairs of the Trust or the Transferor;
provided, however, that this Section 10.08 shall not operate to preclude any
remedy described in Article V of the Indenture.

     Section 10.09.  No Recourse.  The Transferor by accepting the Certificates
                     -----------
acknowledges that the Certificates do not represent interest in or obligations
of the Servicer, the Administrator, the Owner Trustee, the Indenture Trustee or
any Affiliate thereof, and no recourse may be had against such parties or their
assets, or against the assets pledged under the Indenture, except as expressly
provided in the Transaction Documents.

     Section 10.10.  Headings.  The headings of the various Articles and
                     --------
Sections herein are for convenience of reference only and shall not define or
limit any of the terms or provisions hereof.

     Section 10.11.  GOVERNING LAW.  THIS AGREEMENT SHALL BE CONSTRUED IN
                     -------------
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS AND THE OBLIGATIONS, RIGHTS, AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     Section 10.12.  Transferor Payment Obligation.  The Transferor shall be
                     -----------------------------
responsible for payment of the Administrator's fees under the Administration
Agreement (to the extent not paid pursuant to Section 4.04(a) of the applicable
Indenture Supplement) and shall reimburse the Administrator for all expenses and
liabilities of the Administrator incurred thereunder.

     Section 10.13.  Acceptance of Terms of Agreement.   THE RECEIPT AND
                     --------------------------------
ACCEPTANCE OF THE OWNERSHIP INTEREST CERTIFICATE BY THE TRANSFEROR, WITHOUT ANY
SIGNATURE OR FURTHER MANIFESTATION OF ASSENT, SHALL CONSTITUTE THE UNCONDITIONAL
ACCEPTANCE BY THE TRANSFEROR OF ALL THE TERMS AND PROVISIONS OF THIS AGREEMENT,
AND SHALL CONSTITUTE THE AGREEMENT OF THE TRUST THAT THE TERMS AND PROVISIONS OF
THIS AGREEMENT SHALL BE BINDING, OPERATIVE AND EFFECTIVE AS BETWEEN THE TRUST
AND THE TRANSFEROR.

     Section 10.14.  Integration of Documents.  This Agreement, together with
                     ------------------------
the Transfer and Servicing Agreement, constitutes the entire agreement of the
parties hereto and thereto with respect to the subject matter hereof and thereof
and supercedes all prior agreements relating to the subject matter hereof and
thereof.

                               [End of Article X]

                           [Signature Page to Follow]

                                      23
<PAGE>

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

                           WILMINGTON TRUST COMPANY,

                              as Owner Trustee,

                           By:______________________________________
                              Name:
                              Title:

                           HOUSEHOLD RECEIVABLES FUNDING, INC. III,
                             as Transferor,

                           By:______________________________________
                              Name:
                              Title:

                      [Signature Page to Trust Agreement]
<PAGE>

                                                                       EXHIBIT A

                     Form of Ownership Interest Certificate
                     --------------------------------------

     TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THIS CERTIFICATE (OR ANY
INTEREST HEREIN) MAY NOT BE TRANSFERRED TO ANY PERSON EXCEPT IN ACCORDANCE WITH
THE TRUST AGREEMENT.

                   HOUSEHOLD CREDIT CARD MASTER NOTE TRUST I

                               OWNER CERTIFICATE

R-1

     (This Certificate does not represent an interest in or obligation of
Household Receivables Funding, Inc. III, or any of their affiliates, except to
the extent described below.)

     THIS CERTIFIES THAT ___________________________________ is the registered
Owner of the Household Credit Card Master Note Trust I (the "Trust").
                                                             -----

     The Trust was created pursuant to (i) the filing of the Certificate of
Trust with the Secretary of State of the State of Delaware and (ii) the
Household Credit Card Master Note Trust I Trust Agreement dated as of
____________ __, 2000 (the "Trust Agreement"), between Household Receivables
                            ---------------
Funding, Inc. III (the "Transferor") and Wilmington Trust Company, as owner
                        ----------
trustee (not in its individual capacity but solely as owner trustee, the "Owner
                                                                          -----
Trustee").  To the extent not otherwise defined herein, the capitalized terms
-------
used herein have the meanings assigned to them in the Trust Agreement, including
as specified in Section 1.02(a).

     This Certificate is the duly authorized Certificate evidencing a beneficial
interest in the Trust (herein called the "Certificate").  This Certificate is
                                          -----------
issued under and is subject to the terms, provisions and conditions of the Trust
Agreement, to which Trust Agreement the holder by virtue of the acceptance
hereof assents and by which the holder is bound.

     Notwithstanding any prior termination of the Trust Agreement, the holder,
by its acceptance of this Certificate, covenants and agrees that it shall not at
any time with respect to the Trust or the Transferor, acquiesce, petition or
otherwise invoke or cause the Trust or the Transferor to invoke the process of
any court or governmental authority for the purpose of commencing or sustaining
a case against the Trust or the Transferor under any federal or state
bankruptcy, insolvency or similar law or appointing a receiver, conservator,
liquidator, assignee, trustee, custodian, sequestrator or other similar official
of the Trust or the Transferor or any substantial part of its property, or
ordering the winding up or liquidation of the affairs of the Trust or the
Transferor.

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

                                      A-1
<PAGE>

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

                                      A-2
<PAGE>

     IN WITNESS WHEREOF, the Trust has caused this Certificate to be duly
executed.

                                  HOUSEHOLD CREDIT CARD MASTER NOTE TRUST I

                                  By: WILMINGTON TRUST COMPANY
                                          Not in its individual
                                          capacity but solely
                                          as Owner Trustee

Dated:  ____________ __, 2000     By:________________________________
                                     Name:
                                     Title:

                         CERTIFICATE OF AUTHENTICATION

     This is the Certificate referred to in the within-mentioned Trust
Agreement.

                                  WILMINGTON TRUST COMPANY,
                                  Not in its individual
                                  capacity but solely
                                  as Owner Trustee

                                     By:_____________________________,
                                        Authenticating Agent

                                     By:_____________________________
                                        Authorized Signatory

                                      A-3
<PAGE>

                                                            ANNEX 1 TO EXHIBIT A

Registered Owner and address:

Tax Identification Number:

                                      A-4
<PAGE>

                                                                       EXHIBIT B
                         Form of Transferor Certificate
                         ------------------------------

     THIS TRANSFEROR CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED.  NEITHER THIS TRANSFEROR CERTIFICATE NOR ANY PORTION
HEREOF MAY BE OFFERED OR SOLD EXCEPT IN COMPLIANCE WITH THE REGISTRATION
PROVISIONS OF SUCH ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM SUCH
REGISTRATION PROVISIONS.

     THIS TRANSFEROR CERTIFICATE IS NOT PERMITTED TO BE TRANSFERRED, ASSIGNED,
EXCHANGED OR OTHERWISE PLEDGED OR CONVEYED EXCEPT IN COMPLIANCE WITH THE TERMS
OF THE TRANSFER AND SERVICING AGREEMENT REFERRED TO HEREIN.

No. R-__                                                One Unit

                   HOUSEHOLD CREDIT CARD MASTER NOTE TRUST I
                             TRANSFEROR CERTIFICATE

                    THIS CERTIFICATE REPRESENTS AN INTEREST
                            IN CERTAIN ASSETS OF THE
                   HOUSEHOLD CREDIT CARD MASTER NOTE TRUST I

     Evidencing an interest in a trust, the corpus of which consists primarily
of an interest in receivables generated from time to time in the ordinary course
of business in a portfolio of revolving credit card accounts transferred by
Household Receivables Funding, Inc. III (the "Transferor").
                                              ----------

              (Not an interest in or obligation of the Transferor
                           or any affiliate thereof)

     This certifies that HOUSEHOLD RECEIVABLES FUNDING, INC. III is the
registered owner of an undivided ownership interest in the assets of a trust
(the "Trust") subject to the lien of the Notes pursuant to the Master Indenture
      -----
dated as of _________ __, 2000 (as amended and supplemented, the "Indenture")
                                                                  ---------
between the Trust and _________, as Indenture Trustee and not allocated to the
interest of any Holder of a Supplemental Certificate pursuant to the Trust
Agreement dated as of _________ __, 2000 (as amended and supplemented, the
"Trust Agreement"), between Household Receivables Funding, Inc. III, a Delaware
----------------
corporation, as Transferor, and as owner trustee (the "Owner Trustee").  The
                                                       -------------
corpus of the Trust consists of (a) a portfolio of certain receivables (the
"Receivables") existing in the revolving credit card accounts identified under
------------
the Transfer and Servicing Agreement dated as of _________ __, 2000 (the
"Transfer and Servicing Agreement"), among the Transferor, Household Finance
---------------------------------
Corporation, as Servicer (the "Servicer") and the Trust, as Issuer from time to
                               --------
time (the "Accounts"), (b) certain Receivables generated under the Accounts from
           --------
time to time thereafter, (c) certain funds collected or to be collected from
accountholders in respect of the Receivables, (d) all funds which are from time
to time on deposit in the Collection Account, Special Funding Account and in the
Series Accounts, (e) the benefits of any Series Enhancements issued and to be
issued by Series Enhancers with respect to one or more Series of Notes and (f)
all other assets and interests constituting the Trust, including Interchange and
Recoveries allocated to the Trust pursuant to the Transfer and Servicing
Agreement.  Although a summary of certain provisions of the Transfer and
Servicing Agreement, the Trust Agreement and the Indenture (collectively, the
"Agreements") is set forth below, this Certificate
 ----------

                                      B-1
<PAGE>

does not purport to summarize the Agreements and reference is made to the
Agreements for information with respect to the interests, rights, benefits,
obligations, proceeds and duties evidenced hereby and the rights, duties and
obligations of the Owner Trustee. A copy of the Agreements may be requested from
the Owner Trustee by writing to the Owner Trustee at the Corporate Trust Office.
To the extent not defined herein, the capitalized terms used herein have the
meanings ascribed to them in the Agreements.

          This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreements, to which Agreements, as amended and
supplemented from time to time, the Transferor by virtue of the acceptance
hereof assents and is bound.

          The Receivables consist of Principal Receivables which arise generally
from the purchase of merchandise and services and amounts advanced to
cardholders as cash advances and Finance Charge and Administration Receivables
which arise generally from Periodic Finance Charges, Late Fees and other fees
and charges with respect to the Accounts.

          This Certificate is the Transferor Certificate, which represents the
Transferor's interest in the assets of the Trust, including the right to receive
a portion of the Collections and other amounts at the times and in the amounts
specified in the Indenture.  The aggregate interest represented by the
Transferor Certificate at any time in the Receivables in the Trust shall not
exceed the Transferor's Interest at such time.  In addition to the Transferor
Certificate, (a) Notes will be issued to investors pursuant to the Indenture,
which will represent obligations of the Trust, and (b) Supplemental Certificates
may be issued pursuant to the Trust Agreement, which will represent that portion
of the Transferor's Interest not allocated to the Transferor.  This Transferor
Certificate shall represent an interest in the Collection Account, the Special
Funding Account or the Series Accounts, subject to the lien of the Notes and
only as expressly provided in the Agreements, or any Series Enhancements.

          Unless otherwise specified in an Indenture Supplement with respect to
a particular Series the Transferor has entered into the Transfer and Servicing
Agreement, and this Certificate is issued, with the intention that, for federal,
state and local income and franchise tax purposes, (a) the Notes of each Series
which are characterized as indebtedness at the time of their issuance will
qualify as indebtedness of the Transferor secured by the Receivables and (b) the
Trust shall not be treated as an association taxable as a corporation.  The
Transferor, by entering into the Transfer and Servicing Agreement and by the
acceptance of this Transferor Certificate, agrees to treat the Notes for
federal, state and local income and franchise tax purposes as indebtedness of
the Transferor.

          Subject to certain conditions and exceptions specified in the
Agreements, the obligations created by the Agreements and the Trust created
thereby shall terminate upon the earlier of (a) _________ __, 20__, and (b) the
day following the day on which the right of all series of Notes to receive
payments from the Trust has terminated (the "Trust Termination Date") (provided
                                             ----------------------
the Transferor has delivered a written notice to the Owner Trustee electing to
terminate the Trust.

                                      B-2
<PAGE>

          Unless the certificate of authentication hereon has been executed by
or on behalf of the Owner Trustee, by manual signature, this Certificate shall
not be entitled to any benefit under the Agreement or be valid for any purpose.

          IN WITNESS WHEREOF, the Transferor has caused this Certificate to be
duly executed.

                         HOUSEHOLD RECEIVABLES FUNDING, INC. III

                                 By ________________________________
                                    Name:
                                    Title:

Dated:  [_________ __, ____]

                                      B-3
<PAGE>

                    TRUSTEE'S CERTIFICATE OF AUTHENTICATION

     This is the Transferor Certificate described in the within-mentioned
Agreement.

                    WILMINGTON TRUST COMPANY,
                    Not in its individual capacity but solely
                    as Owner Trustee,

                    By:________________________________
                       Authorized Signatory

                                      B-4
<PAGE>

                                                                       EXHIBIT C
                                    FORM OF
                            CERTIFICATE OF TRUST OF
                   HOUSEHOLD CREDIT CARD MASTER NOTE TRUST I

     THIS Certificate of Trust of Household Credit Card Master Note Trust I (the
"Trust"), dated _____________ __, 2000, is being duly executed and filed by the
 -----
undersigned, as trustee, to form a business trust under the Delaware Business
Trust Act (12 Del. C., (S) 3801 et seq.) (the "Act").
              -------           -- ----        ---

     1.   Name.  The name of the business trust created hereby is Household
          ----
Credit Card Master Note Trust I.

     2.   Delaware Trustee.  The name and business address of the trustee of the
          ----------------
Trust in the State of Delaware is ____________________________________________.

     3.   Effective Date.  This Certificate of Trust shall be effective
          --------------
____________ __, 2000.

     IN WITNESS WHEREOF, the undersigned has executed this Certificate of Trust
in accordance with Section 3811(a)(2) of the Act.

                         WILMINGTON TRUST COMPANY,
                              Not in its individual capacity but
                              solely as owner trustee under the Trust Agreement,
                              dated as of ____________ __, 2000

                         By:___________________________________
                            Name:
                            Title:

                                      C-1

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