Document:

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                                                                     EXHIBIT 4.1

                          SALE AND SERVICING AGREEMENT

                                      among

                   NISSAN AUTO RECEIVABLES 2003-C OWNER TRUST,
                                   as Issuer,

                     NISSAN AUTO RECEIVABLES CORPORATION II,
                                   as Seller,

                                       and

                      NISSAN MOTOR ACCEPTANCE CORPORATION,
                                   as Servicer

                          Dated as of November 13, 2003

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                                TABLE OF CONTENTS

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                                              ARTICLE I

                                             DEFINITIONS

SECTION 1.01     Definitions..........................................................................     1
SECTION 1.02     Usage of Terms.......................................................................    19

                                              ARTICLE II

                                       CONVEYANCE OF RECEIVABLES

SECTION 2.01     Conveyance of Receivables............................................................    20
SECTION 2.02     Custody of Receivable Files..........................................................    21
SECTION 2.03     Acceptance by Issuer.................................................................    22

                                              ARTICLE III

                                            THE RECEIVABLES

SECTION 3.01     Representations and Warranties of the Seller with Respect to the Receivables.........    22
SECTION 3.02     Repurchase upon Breach...............................................................    26
SECTION 3.03     Duties of Servicer as Custodian......................................................    27
SECTION 3.04     Instructions; Authority To Act.......................................................    27
SECTION 3.05     Custodian's Indemnification..........................................................    28
SECTION 3.06     Effective Period and Termination.....................................................    28

                                              ARTICLE IV

                              ADMINISTRATION AND SERVICING OF RECEIVABLES

SECTION 4.01     Duties of Servicer...................................................................    28
SECTION 4.02     Collection of Receivable Payments....................................................    30
SECTION 4.03     Realization upon Receivables.........................................................    30
SECTION 4.04     Maintenance of Security Interests in Financed Vehicles...............................    30
SECTION 4.05     Covenants of Servicer................................................................    31
SECTION 4.06     Purchase of Receivables upon Breach..................................................    31
SECTION 4.07     Servicing Fee and Expenses...........................................................    32
SECTION 4.08     Servicer's Certificate...............................................................    32
SECTION 4.09     Annual Statement as to Compliance; Notice of Default.................................    32
SECTION 4.10     Annual Independent Certified Public Accountants' Report..............................    33
SECTION 4.11     Access to Certain Documentation and Information Regarding Receivables................    33
SECTION 4.12     Appointment of Subservicer...........................................................    34
SECTION 4.13     Amendments to Schedule of Receivables................................................    34
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                                TABLE OF CONTENTS
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SECTION 4.14    Acknowledgement by Servicer of its Obligations under the Indenture...................    34

                                              ARTICLE V

          DISTRIBUTIONS; ACCOUNTS; STATEMENTS TO THE CERTIFICATEHOLDERS AND THE NOTEHOLDERS

SECTION 5.01    Establishment of Accounts............................................................    34
SECTION 5.02    Collections..........................................................................    36
SECTION 5.03    Application of Collections...........................................................    37
SECTION 5.04    Advances.............................................................................    38
SECTION 5.05    Additional Deposits..................................................................    39
SECTION 5.06    Payments and Distributions...........................................................    39
SECTION 5.07    Reserve Account......................................................................    44
SECTION 5.08    Yield Supplement Account.............................................................    46
SECTION 5.09    Statements to Certificateholders and Noteholders.....................................    48
SECTION 5.10    Net Deposits.........................................................................    49
SECTION 5.11    Swap Agreement.......................................................................    49

                                              ARTICLE VI

                                              THE SELLER

SECTION 6.01    Representations of Seller............................................................    50
SECTION 6.02    Additional Covenants of the Seller...................................................    51
SECTION 6.03    Liability of Seller; Indemnities.....................................................    53
SECTION 6.04    Merger or Consolidation of, or Assumption of the Obligations of, Seller..............    54
SECTION 6.05    Limitation on Liability of Seller and Others.........................................    55
SECTION 6.06    Seller May Own Certificates or Notes.................................................    55

                                             ARTICLE VII

                                             THE SERVICER

SECTION 7.01    Representations of Servicer..........................................................    56
SECTION 7.02    Indemnities of Servicer..............................................................    57
SECTION 7.03    Merger or Consolidation of, or Assumption of the Obligations of, Servicer............    58
SECTION 7.04    Limitation on Liability of Servicer and Others.......................................    59
SECTION 7.05    NMAC Not To Resign as Servicer.......................................................    59
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                                TABLE OF CONTENTS
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                                             ARTICLE VIII

                                                DEFAULT

SECTION 8.01     Servicer Default.....................................................................    60
SECTION 8.02     Appointment of Successor.............................................................    61
SECTION 8.03     Repayment of Advances................................................................    62
SECTION 8.04     Notification.........................................................................    62
SECTION 8.05     Waiver of Past Defaults..............................................................    63

                                              ARTICLE IX

                                  TERMINATION; RELEASE OF RECEIVABLES

SECTION 9.01     Optional Purchase of All Receivables.................................................    63
SECTION 9.02     Release of Receivables...............................................................    64
SECTION 9.03     Termination..........................................................................    65

                                               ARTICLE X

                                             MISCELLANEOUS

SECTION 10.01    Amendment............................................................................    65
SECTION 10.02    Protection of Title to Trust.........................................................    67
SECTION 10.03    Notices..............................................................................    69
SECTION 10.04    Assignment by the Seller or the Servicer.............................................    69
SECTION 10.05    Limitations on Rights of Others......................................................    69
SECTION 10.06    Severability.........................................................................    69
SECTION 10.07    Separate Counterparts................................................................    69
SECTION 10.08    Headings.............................................................................    69
SECTION 10.09    Governing Law........................................................................    70
SECTION 10.10    Assignment by Issuer.................................................................    70
SECTION 10.11    Nonpetition Covenants................................................................    70
SECTION 10.12    Limitation of Liability of Owner Trustee and Indenture Trustee.......................    70
SECTION 10.13    Waivers..............................................................................    71

SCHEDULE A        Schedule of Receivables
SCHEDULE B        Location of the Receivable Files
EXHIBIT A         Form of Yield Supplement Agreement
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         SALE AND SERVICING AGREEMENT, dated as of November 13, 2003, among
NISSAN AUTO RECEIVABLES 2003-C OWNER TRUST, a Delaware statutory trust (the
"Issuer"), NISSAN AUTO RECEIVABLES CORPORATION II, a Delaware corporation (the
"Seller"), and NISSAN MOTOR ACCEPTANCE CORPORATION, a California corporation in
its individual capacity (in such capacity, "NMAC") and as Servicer (in such
capacity, the "Servicer"). Capitalized terms used herein without definition
shall have the respective meanings assigned to such terms in Article I.

         WHEREAS, the Issuer desires to purchase a portfolio of receivables
arising in connection with retail installment sales contracts secured by new,
near-new or used automobiles and light-duty trucks generated by NMAC in the
ordinary course of business and sold to the Seller;

         WHEREAS, the Seller is willing to sell such receivables to the Issuer;

         WHEREAS, the Servicer is willing to service such receivables; and

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

                                   ARTICLE I

                                  Definitions

         SECTION 1.01 Definitions. Except as otherwise provided in this
Agreement, whenever used herein, the following words and phrases, unless the
context otherwise requires, shall have the following respective meanings:

         "Accounts" means the Collection Account, the Yield Supplement Account
and the Reserve Account.

         "Administration Agreement" means the Administration Agreement, dated as
of November 13, 2003, among the Administrator, the Issuer, the Indenture Trustee
and the Owner Trustee.

         "Administrative Purchase Payment" for any Administrative Receivable as
of the last day of any Collection Period, means the sum of the Principal Balance
thereof as of the beginning of such Collection Period plus interest accrued
thereon through the due date for the Obligor's payment in such Collection Period
at the related APR, after giving effect to the receipt of monies collected (from
whatever source other than the Advances) on such Administrative Receivable, if
any, during such Collection Period.

         "Administrative Receivable" means a Receivable purchased as of the
close of business on the last day of a Collection Period by the Servicer
pursuant to Section 4.06 or Section 9.01.

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

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         "Advance" means the amount, as of the last day of a Collection Period,
that the Servicer is required to advance on the respective Receivable pursuant
to Section 5.04.

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

         "Aggregate Noteholders' Interest Distributable Amount" means, with
respect to any Distribution Date, the sum of the Noteholders' Interest
Distributable Amount for all Classes of Notes with respect to such Distribution
Date.

         "Agreement" means this Sale and Servicing Agreement among Nissan Auto
Receivables 2003-C Owner Trust, as Issuer, NARC II, as Seller, and NMAC, as
Servicer.

         "AICPA" shall have the meaning assigned to such term in Section 4.10.

         "Amount Financed" with respect to any Receivable, means the amount
advanced under the Receivable toward the purchase price of the related Financed
Vehicle and any related costs, including but not limited to accessories,
insurance premiums, service and warranty contracts and other items customarily
financed as part of retail automobile and light-duty truck installment sale
contracts.

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

         "Annual USAP Report" shall have the meaning specified in Section 4.10.

         "Assignment" shall have the meaning assigned to such term in the
Purchase Agreement.

         "Available Amounts" means, with respect to any Distribution Date, the
sum of Available Interest and Available Principal for such Distribution Date.

         "Available Interest" means, for any Distribution Date, the sum of the
following amounts received during the related Collection Period: (i) that
portion of all collections on Receivables allocable to interest, (ii) without
duplication of amounts described in clause (i), Net Liquidation Proceeds to the
extent allocable to interest due on a Liquidated Receivable in accordance with
the Servicer's customary servicing procedures, (iii) all Advances made by the
Servicer pursuant to Section 5.04, (iv) without duplication of any amounts
described above in clauses (i) and (ii), the Administrative Purchase Payment of
each Receivable that became an Administrative Receivable during the related
Collection Period to the extent attributable to interest thereon, (v) without
duplication of any amounts described above in clauses (i) and (ii), the Warranty
Purchase Payment of each Receivable that became a Warranty Receivable during the
related Collection Period to the extent attributable to interest thereon, and
(vi) the Yield Supplement Deposit plus the sum of (x) reinvestment income on the
Yield Supplement Account and (y) the amount, if any, deposited into the
Collection Account pursuant to the second or third sentence of

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Section 5.08(b); provided, however, that in calculating Available Interest,
amounts to be paid to the Servicer as reimbursement for Advances pursuant to
Sections 5.06(c)(i), 5.06(c)(ii), 5.06(d)(i), 5.06(d)(ii), 5.06(e)(i) and
5.06(e)(ii) on such Distribution Date shall be excluded.

         "Available Principal" means, for any Distribution Date, the sum of the
following amounts received during the related Collection Period: (i) that
portion of all collections on Receivables attributable to principal, (ii)
without duplication of amounts described in clause (i), Net Liquidation Proceeds
attributable to principal due on a Liquidated Receivable in accordance with the
Servicer's customary servicing procedures, (iii) without duplication of any
amounts described above in clauses (i) and (ii), the Administrative Purchase
Payment of each Receivable that became an Administrative Receivable during the
related Collection Period to the extent attributable to principal, and (iv)
without duplication of any amounts described above in clauses (i) and (ii), the
Warranty Purchase Payment of each Receivable that became a Warranty Receivable
during the related Collection Period to the extent attributable to principal.

         "Bankruptcy Code" means the United States Bankruptcy Code, 11
U.S.C. Section 101 et seq.

         "Base Servicing Fee" means the fee payable to the Servicer on each
Distribution Date for services rendered during the related Collection Period,
which shall be equal to one-twelfth of the Servicing Rate multiplied by the Pool
Balance as of the close of business on the last day of the immediately preceding
Collection Period or, with respect to the first Distribution Date, the Original
Pool Balance.

         "Basic Documents" means the Purchase Agreement, the Trust Agreement,
the Certificate of Trust, this Agreement, the Indenture, the Administration
Agreement, the Securities Account Control Agreement, the Yield Supplement
Agreement, the Note Depository Agreement and the other documents and
certificates delivered in connection herewith and therewith.

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

         "Certificate Balance" means, as of any Distribution Date, the Original
Certificate Balance, reduced by all amounts distributed to the
Certificateholders pursuant to Section 5.06(c), (d) and/or (e) hereof (but in no
event less than zero). For the purposes of determining whether the vote of the
requisite percentage of Certificateholders necessary to effect any consent,
waiver, request or demand shall have been obtained, the Certificate Balance
shall be deemed to be reduced by the amount equal to the balance (without giving
effect to this provision) evidenced by any Certificate registered in the name of
the Seller, the Servicer or any Person actually known to a Trust Officer of the
Owner Trustee or the Indenture Trustee, as the case may be, to be the Seller or
the Servicer or any of their Affiliates.

         "Certificate Factor" means, with respect to any Distribution Date, a
seven-digit decimal figure obtained by dividing the Certificate Balance as of
the close of business on the last day of the related Collection Period by the
Original Certificate Balance.

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         "Certificate of Trust" shall have the meaning assigned to such term in
the Trust Agreement.

         "Certificate Pool Factor" means, with respect to any Distribution Date,
a seven-digit decimal figure obtained by dividing the Certificate Balance as of
the close of business on the last day of the related Collection Period by the
Original Pool Balance.

         "Certificate Register" means the register maintained by the Certificate
Registrar pursuant to the Trust Agreement recording the names of the
Certificateholders.

         "Certificateholder" shall have the meaning assigned to such term in the
Trust Agreement.

         "Certificateholders' Percentage" means (a) until the Distribution Date
on which the principal amount of the Class A-1 Notes has been paid in full,
zero, and (b) with respect to any Distribution Date on or after the principal
amount of the Class A-1 Notes has been paid in full, 100% minus the Noteholders'
Percentage.

         "Certificateholders' Principal Distributable Amount" means, with
respect to any Distribution Date, an amount sufficient to reduce the outstanding
principal amount of the Certificates to an amount equal to the product of the
Certificateholders' Percentage and the Pool Balance as of the end of the related
Collection Period.

         "Certificates" shall have the meaning assigned to such term in the
Trust Agreement.

         "Class" means any one of the classes of Notes.

         "Class A-1 Final Scheduled Distribution Date" means November 15, 2004.

         "Class A-1 Interest Rate" means 1.1475% per annum.

         "Class A-1 Note" means any of the 1.1475% Asset Backed Notes, Class
A-1, issued under the Indenture.

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

         "Class A-2 Final Scheduled Distribution Date" means April 17, 2006.

         "Class A-2 Interest Rate" means 1.62000% per annum.

         "Class A-2 Note" means any of the 1.62000% Asset Backed Notes, Class
A-2, issued under the Indenture.

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

         "Class A-3 Final Scheduled Distribution Date" means March 15, 2007.

         "Class A-3 Interest Rate" means 2.23000% per annum.

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         "Class A-3 Note" means any of the 2.23000% Asset Backed Notes, Class
A-3, issued under the Indenture.

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

         "Class A-4 Final Scheduled Distribution Date" means December 17, 2007.

         "Class A-4 Interest Rate" means 2.70000% per annum.

         "Class A-4 Note" means any of the 2.70000% Asset Backed Notes, Class
A-4, issued under the Indenture.

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

         "Class A-5 Final Scheduled Distribution Date" means March 16, 2009.

         "Class A-5 Interest Rate" means 3.21000% per annum.

         "Class A-5 Note" means any of the 3.21000% Asset Backed Notes, Class
A-5, issued under the Indenture.

         "Class A-5 Noteholder" means the Person in whose name a Class A-5 Note
is registered in the Note Register.

         "Clearing Agency" means an organization registered as a "clearing
agency" pursuant to Section 17A of the Exchange Act.

         "Closing Date" means November 13, 2003.

         "Code" means the Internal Revenue Code of 1986.

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

         "Collection Period" means, with respect to any Distribution Date, the
preceding calendar month. Any amount stated "as of the close of business of the
last day of a Collection Period" or "as of the end of a Collection Period" shall
give effect to the following calculations as determined as of the end of the day
on such last day: (i) all applications of collections, (ii) all Advances and
reductions of Outstanding Advances and (iii) all distributions.

         "Corporate Trust Office" shall have the meaning assigned to such term
in the Indenture.

         "Cutoff Date" means October 31, 2003.

         "Damages" shall have the meaning assigned to such term in Section 7.02.

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         "Dealer" means the dealer who sold a Financed Vehicle and who
originated and assigned the related Receivable to NMAC under an existing
agreement between such dealer and NMAC.

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

         "Default" shall have the meaning assigned to such term in the
Indenture.

         "Defaulted Receivable" means (a) a Receivable (other than an
Administrative Receivable or a Warranty Receivable), which, by its terms, is
delinquent for 120 or more days, (b) with respect to Receivables that are
delinquent for less than 120 days, the Servicer has (i) determined, in
accordance with its customary servicing procedures, that eventual payment in
full is unlikely or (ii) repossessed the Financed Vehicle, or (c) a Receivable
with respect to which the Servicer has received notification that the related
Obligor is subject to proceedings under Chapter 13 of the Bankruptcy Code.

         "Definitive Notes" shall have the meaning ascribed thereto in the
Indenture.

         "Determination Date" means the tenth calendar day of each calendar
month, or if such tenth day is not a Business Day, the next succeeding Business
Day.

         "Distribution Date" means the 15th calendar day of each calendar month,
or if the 15th day is not a Business Day, the next succeeding Business Day,
commencing December 15, 2003.

         "DTC" means The Depository Trust Company.

         "Eligible Deposit Account" means an account maintained (i) with the
Indenture Trustee or the Owner Trustee so long as the Indenture Trustee's or the
Owner Trustee's short-term unsecured debt obligations have a rating of "P-1" by
Moody's and a rating of "A-1+" by Standard & Poor's, and for any account in
which deposits in excess of 30 days are to be made, so long as the Indenture
Trustee's or the Owner Trustee's long-term unsecured debt obligations have a
rating of at least "AA-" by Standard & Poor's (such short-term and long-term (if
applicable) ratings being the "Required Deposit Rating"), or (ii) in a
segregated trust account in the trust department of the Indenture Trustee or the
Owner Trustee, as the case may be. Notwithstanding anything to the contrary, as
of the Closing Date, the Indenture Trustee shall be deemed to have met the
requirements in clause (i).

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

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

                  (ii)     demand deposits, time deposits or certificates of
         deposit of any depository institution or trust company incorporated
         under the laws of the United States of America or any state thereof (or
         any domestic branch of a foreign bank) and subject to supervision and
         examination by Federal or State banking or depository institution
         authorities; provided, however, that at the time of the investment or
         contractual commitment to invest

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         therein, the commercial paper or other short-term unsecured debt
         obligations (other than such obligations the rating of which is based
         on the credit of a Person other than such depository institution or
         trust company) thereof shall have a credit rating from each of the
         Rating Agencies in the highest investment category granted thereby;

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

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

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

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

                  (vii)    repurchase obligations with respect to any security
         or whole loan, entered into with (a) a depository institution or trust
         company (acting as principal) described in clause (ii) above (except
         that the rating referred to in the proviso in such clause (ii) shall be
         "A-1" or higher in the case of Standard & Poor's) (such depository
         institution or trust company being referred to in this definition as a
         "financial institution"), (b) a broker/dealer (acting as principal)
         registered as a broker or dealer under Section 15 of the Exchange Act
         (a "broker/dealer"), the unsecured short-term debt obligations of which
         are rated "P-1" by Moody's and at least "A-1" by Standard & Poor's at
         the time of entering into such repurchase obligation (a "rated
         broker/dealer"), (c) an unrated broker/dealer (an "unrated
         broker/dealer"), acting as principal that is a wholly-owned subsidiary
         of a non-bank holding company the unsecured short-term debt obligations
         of which are rated "P-1" by Moody's and at least "A-1" by Standard &
         Poor's at the time of entering into such repurchase obligation (a
         "Rated Holding Company"), or (d) an unrated wholly-owned subsidiary of
         a direct or indirect parent Rated Holding Company, which guarantees
         such subsidiary's obligations under such repurchase agreement (a
         "Guaranteed Counterparty"); provided that the following conditions are
         satisfied:

                           (A)      the aggregate amount of funds invested in
                  repurchase obligations of a financial institution, a rated
                  broker/dealer, an unrated broker/dealer or a Guaranteed
                  Counterparty in respect of which the unsecured short-term
                  ratings of Standard & Poor's are "A-1" (in the case of an
                  unrated broker/dealer or Guaranteed Counterparty, such rating
                  being that of the related Rated Holding Company) shall not
                  exceed 20% of the outstanding Pool Balance (there being no
                  limit on the amount of funds that may be invested in
                  repurchase obligations in

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                  respect of which such Standard & Poor's rating is "A-1+" (in
                  the case of an unrated broker/dealer or Guaranteed
                  Counterparty, such rating being that of the related Rated
                  Holding Company));

                           (B)      in the case of the Reserve Account and the
                  Yield Supplement Account, the rating from Standard & Poor's in
                  respect of the unsecured short term debt obligations of the
                  financial institution, rated broker/dealer, unrated
                  broker/dealer or Guaranteed Counterparty (in the case of an
                  unrated broker/dealer or Guaranteed Counterparty, such rating
                  being that of the related Rated Holding Company) shall be
                  "A-1+";

                           (C)      the repurchase obligation must mature within
                  30 days of the date on which the Indenture Trustee or the
                  Owner Trustee, as applicable, enters into such repurchase
                  obligation;

                           (D)      the repurchase obligation shall not be
                  subordinated to any other obligation of the related financial
                  institution, rated broker/dealer, unrated broker/dealer or
                  Guaranteed Counterparty;

                           (E)      the collateral subject to the repurchase
                  obligation is held, in the appropriate form, by a custodial
                  bank on behalf of the Indenture Trustee or the Owner Trustee,
                  as applicable;

                           (F)      the repurchase obligation shall require that
                  the collateral subject thereto shall be marked to market
                  daily;

                           (G)      in the case of a repurchase obligation of a
                  Guaranteed Counterparty, the following conditions shall also
                  be satisfied:

                                    (1)      the Indenture Trustee or the Owner
                           Trustee, as applicable, shall have received an
                           Opinion of Counsel to the effect that the guarantee
                           of the related Rated Holding Company is a legal,
                           valid and binding agreement of the Rated Holding
                           Company, enforceable in accordance with its terms,
                           subject to the effect of bankruptcy, insolvency,
                           reorganization and moratorium or other similar laws
                           affecting creditors' rights generally and to general
                           equitable principles;

                                    (2)      the Indenture Trustee or the Owner
                           Trustee, as applicable, shall have received (x) an
                           incumbency certificate for the signer of such
                           guarantee, certified by an officer of such Rated
                           Holding Company, and (y) a resolution, certified by
                           an officer of the Rated Holding Company, of the board
                           of directors (or applicable committee thereof) of the
                           Rated Holding Company authorizing the execution,
                           delivery and performance of such guarantee by the
                           Rated Holding Company;

                                    (3)      the only conditions to the
                           obligation of such Rated Holding Company to pay on
                           behalf of the Guaranteed Counterparty shall be that
                           the Guaranteed Counterparty shall not have paid under
                           such repurchase

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                           obligation when required (it being understood that no
                           notice to, demand on or other action in respect of
                           the Guaranteed Counterparty is necessary) and that
                           the Indenture Trustee or the Owner Trustee, as
                           applicable, shall make a demand on the Rated Holding
                           Company to make the payment due under such guarantee;

                                    (4)      the guarantee of the Rated Holding
                           Company shall be irrevocable with respect to such
                           repurchase obligation and shall not be subordinated
                           to any other obligation of the Rated Holding Company;
                           and

                                    (5)      each of the Rating Agencies has
                           confirmed in writing to the Indenture Trustee or the
                           Owner Trustee, as applicable, that it has reviewed
                           the form of the guarantee of the Rated Holding
                           Company and has determined that the issuance of such
                           guarantee will not result in the downgrade or
                           withdrawal of the ratings assigned to the Notes; and

                           (H)      the repurchase obligation shall require that
                  the repurchase obligation be overcollateralized and shall
                  provide that, upon any failure to maintain such
                  overcollateralization, the repurchase obligation shall become
                  due and payable, and unless the repurchase obligation is
                  satisfied immediately, the collateral subject to the
                  repurchase agreement shall be liquidated and the proceeds
                  applied to satisfy the unsatisfied portion of the repurchase
                  obligation; and

                  (viii)   any other investment with respect to which the
         Servicer has received written notification from the Rating Agencies
         that the acquisition of such investment as an Eligible Investment will
         not result in a withdrawal or downgrading of the ratings on the Notes;

provided that, unless otherwise expressly stated herein, each of the foregoing
investments shall be denominated in U.S. dollars, shall not be purchased at a
premium, shall mature no later than the Business Day prior to the Distribution
Date immediately following the date of purchase, and shall be required to be
held to such maturity; and provided, further, that, notwithstanding clauses (i)
through (viii) above, "Eligible Investments" shall not include any security
having an "r" subscript attached to its Standard & Poor's rating.

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

         "Event of Default" shall have the meaning assigned to such term in the
Indenture.

         "Exchange Act" means the Securities Exchange Act of 1934.

         "Final Scheduled Distribution Date" means, the Class A-1 Final
Scheduled Distribution Date, the Class A-2 Final Scheduled Distribution Date,
the Class A-3 Final Scheduled

                                       9
<PAGE>

Distribution Date, the Class A-4 Final Scheduled Distribution Date, and the
Class A-5 Final Scheduled Distribution Date.

         "Financed Vehicle" means a new, near-new or used automobile or
light-duty truck, together with all accessions thereto, securing an Obligor's
indebtedness under the related Receivable.

         "Holder" or "Securityholder" means the registered holder of any
Certificate or Note as evidenced by the Certificate Register (as defined in the
Trust Agreement) or Note Register (as defined in the Indenture) except that,
solely for the purposes of giving certain consents, waivers, requests or demands
pursuant to the Trust Agreement or the Indenture, the interest evidenced by any
Certificate or Note registered in the name of NARC II or NMAC, or any Person
actually known to a Trust Officer to be an Affiliate of NARC II or NMAC, shall
not be taken into account in determining whether the requisite percentage
necessary to effect any such consent, waiver, request or demand shall have been
obtained unless NARC II or NMAC are the only holders.

         "Indenture" means the Indenture dated as of November 13, 2003, between
the Issuer and Wells Fargo Bank Minnesota, National Association, as Indenture
Trustee.

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

         "Initial Yield Supplement Amount" means $56,304,525.68.

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

         "Interest Period" means, with respect to any Distribution Date and the
Class A-1 Notes, the period from (and including) the preceding Distribution Date
to (but excluding) such Distribution Date, except that the initial Interest
Period will be from (and including) the Closing Date to (but excluding) December
15, 2003, and, with respect to any Distribution Date and the Class A-2 Notes,
the Class A-3 Notes, the Class A-4 Notes, and the Class A-5 Notes, the period
from (and including) the 15th day of the preceding calendar month to (but
excluding) the 15th

                                       10
<PAGE>

day of the month in which such Distribution Date occurs, except that the initial
Interest Period will be from (and including) the Closing Date to (but excluding)
December 15, 2003.

         "Interest Rate" means the Class A-1 Interest Rate, the Class A-2
Interest Rate, the Class A-3 Interest Rate, the Class A-4 Interest Rate or the
Class A-5 Interest Rate, as the case may be.

         "Issuer" means Nissan Auto Receivables 2003-C Owner Trust, a Delaware
statutory trust.

         "Lien" means any security interest, lien, charge, pledge, equity or
encumbrance of any kind, other than, in the case of a Financed Vehicle, tax
liens, mechanics' liens and any liens that attach to such Financed Vehicle by
operation of law.

         "Liquidated Receivable" means a Defaulted Receivable as to which the
related Financed Vehicle has been liquidated by the Servicer.

         "Monthly Remittance Conditions" shall have the meaning assigned to such
term in Section 5.02.

         "Moody's" means Moody's Investors Service.

         "NARC II" means Nissan Auto Receivables Corporation II, a Delaware
corporation.

         "Net Liquidation Proceeds" means the monies collected from whatever
source on a Liquidated Receivable, net of the sum of any amounts expended by the
Servicer for the account of the Obligor, plus any amounts required by law to be
remitted to the Obligor.

         "Nissan" means Nissan Motor Co., Ltd.

         "NMAC" means Nissan Motor Acceptance Corporation, a California
corporation.

         "Nonrecoverable Advance" means any Outstanding Advance with respect to
(i) any Defaulted Receivable or (ii) any Receivable as to which the Servicer
determines that any recovery from payments made on or with respect to such
Receivable is unlikely.

         "Note" means any one of the notes issued under the Indenture.

         "Note Depository Agreement" shall have the meaning assigned to such
term in the Indenture.

         "Note Factor" means, with respect to any Class of Notes and any
Distribution Date, a seven-digit decimal figure obtained by dividing the
Outstanding Amount of such Class of Notes, as of the close of business on the
last day of the related Collection Period, by the initial Outstanding Amount of
that Class of Notes.

         "Noteholder" shall have the meaning assigned to such term in the
Indenture.

         "Noteholders' Interest Carryover Shortfall" means, with respect to any
Distribution Date and a Class of Notes, the excess, if any, of the sum of the
Noteholders' Monthly Interest

                                       11
<PAGE>

Distributable Amount for such Class for the preceding Distribution Date plus any
outstanding Noteholders' Interest Carryover Shortfall for such Class on such
preceding Distribution Date, over the amount in respect of interest that is
actually paid on the Notes of such Class on such preceding Distribution Date,
plus, to the extent permitted by applicable law, interest on the Noteholders'
Interest Carryover Shortfall at the related Interest Rate for the related
Interest Period (calculated on the same basis as interest on that Class of Notes
for the same period).

         "Noteholders' Interest Distributable Amount" means, with respect to any
Distribution Date and a Class of Notes, the sum of the Noteholders' Monthly
Interest Distributable Amount for such Class plus any outstanding Noteholders'
Interest Carryover Shortfall for such Class as of the close of the immediately
preceding Distribution Date.

         "Noteholders' Monthly Interest Distributable Amount" means, with
respect to any Distribution Date and a Class of Notes, interest accrued for the
related Interest Period (calculated on the basis of, in the case of Class A-1
Notes, the actual number of days in such Interest Period and a year assumed to
consist of 360 days, and in the case of all other Classes of Notes, such
Interest Period being assumed to consist of 30 days and a year assumed to
consist of 360 days) at the related Interest Rate for such Class of Notes on the
Outstanding Amount of the Notes of such Class on the immediately preceding
Distribution Date, after giving effect to all payments of principal to
Noteholders of such Class on or prior to such Distribution Date (or, in the case
of the first Distribution Date, on the original principal amount of such Class
of Notes).

         "Noteholders' Percentage" means, for any Distribution Date, the
percentage equivalent of a fraction, the numerator of which is the aggregate of
the principal balances of the Class A-2, Class A-3, Class A-4 Notes, and the
Class A-5 Notes as of the Closing Date, and the denominator of which is the
aggregate of such principal balances plus the principal amount of the
Certificates as of the Closing Date.

         "Noteholders' Principal Carryover Shortfall" means, with respect to any
Distribution Date, the excess, if any, of the Noteholders' Principal
Distributable Amount for the preceding Distribution Date over the amount in
respect of principal that is actually paid as principal on the Notes on such
previous Distribution Date. Noteholders' Principal Carryover Shortfall is not
used to determine the amount of principal due on the Notes on any Distribution
Date, but is used solely for reporting purposes.

         "Noteholders' Principal Distributable Amount" means, (a) with respect
to any Distribution Date until the principal amount of the Class A-1 Notes is
reduced to zero, an amount equal to the excess, if any, of (i) the Pool Balance
as of the end of the Collection Period preceding the related Collection Period,
or as of the Cutoff Date, in the case of the first Collection Period, over (ii)
the Pool Balance as of the end of the related Collection Period, together with
any portion of the Noteholders' Principal Distributable Amount that was to be
distributed as such on any prior Distribution Date but was not because
sufficient funds were not available to make such distribution; and (b) with
respect to any Distribution Date on or after which the principal amount of the
Class A-1 Notes is reduced to zero, an amount sufficient to reduce the aggregate
outstanding principal amount of the Class A Notes to an amount equal to the
product of the Noteholders' Percentage and the Pool Balance as of the end of the
related Collection period; provided, however, that (i) the Noteholders'
Principal Distributable Amount

                                       12
<PAGE>

on the Class A-1 Final Scheduled Distribution Date shall not be less than the
amount that is necessary to reduce the outstanding principal amount of the Class
A-1 Notes to zero; (ii) the Noteholders' Principal Distributable Amount on the
Class A-2 Final Scheduled Distribution Date shall not be less than the amount
that is necessary to reduce the outstanding principal amount of the Class A-2
Notes to zero; (iii) the Noteholders' Principal Distributable Amount on the
Class A-3 Final Scheduled Distribution Date shall not be less than the amount
that is necessary to reduce the outstanding principal amount of the Class A-3
Notes to zero; (iv) the Noteholders' Principal Distributable Amount on the Class
A-4 Final Scheduled Distribution Date shall not be less than the amount that is
necessary to reduce the outstanding principal amount of the Class A-4 Notes to
zero; and (v) the Noteholders' Principal Distributable Amount on the Class A-5
Final Scheduled Distribution Date shall not be less than the amount that is
necessary to reduce the outstanding principal amount of the Class A-5 Notes to
zero.

         "Note Owner" shall have the meaning assigned to such term in the
Indenture.

         "Note Pool Factor" means, with respect to any Class of Notes and any
Distribution Date, a seven-digit decimal figure obtained by dividing the
Outstanding Amount of such Class of Notes as of the close of business on the
last day of the related Collection Period by the Original Pool Balance.

         "Note Register" means the register maintained by the Indenture Trustee
pursuant to the Indenture recording the name of each Noteholder.

         "Notes" means the Class A-1 Notes, the Class A-2 Notes, the Class A-3
Notes, the Class A-4 Notes, and the Class A-5 Notes.

         "Obligor" on a Receivable means the purchaser or co-purchasers of the
Financed Vehicle or any other Person who owes payments under the Receivable (but
excluding any Dealer in respect of Dealer Recourse).

         "Officer's Certificate" means a certificate signed by the chairman of
the board, the president, any executive vice president, any vice president, the
treasurer, any assistant treasurer or the controller of the Seller or the
Servicer, as the case may be.

         "Opinion of Counsel" means one or more written opinions of counsel who
may, except as otherwise provided herein, be an employee of or counsel to the
Issuer, the Seller or the Servicer, which counsel shall be reasonably acceptable
to the Indenture Trustee, the Owner Trustee or the Rating Agencies, as the case
may be.

         "Optional Purchase" shall have the meaning assigned to such term in
Section 9.01(a).

         "Optional Purchase Percentage" means 5.00%.

         "Optional Purchase Price" means, an amount equal to the aggregate
Administrative Purchase Payments for the Receivables (including Receivables that
became Defaulted Receivables in the Collection Period preceding the Distribution
Date on which a purchase pursuant to Section 9.01 is effected), plus the
appraised value of any other property held by the Trust, such value to be
determined by an appraiser mutually agreed upon by the Servicer and the

                                       13
<PAGE>

Indenture Trustee (less liquidation expenses); provided, however, that the
Optional Purchase Price shall be equal to or greater than the sum of (i) the
Outstanding Amount of all Classes of Notes, (ii) the Noteholders' Interest
Distributable Amount for all Classes of Notes for such Distribution Date, and
(iii) the Certificate Balance.

         "Original Certificate Balance" means $102,925,118.56.

         "Original Pool Balance" means the aggregate Principal Balance of the
Receivables on the Cutoff Date.

         "Original Principal Amount" means $480,000,000 for the Class A-1 Notes,
$452,000,000 for the Class A-2 Notes, $380,000,000 for the Class A-3 Notes,
$280,000,000 for the Class A-4 Notes, and $265,440,000 for the Class A-5 Notes.

         "Outstanding" shall have the meaning assigned to that term in the
Indenture.

         "Outstanding Advances" means, with respect to a Receivable and the last
day of a Collection Period, the sum of all Advances made as of or prior to such
date, minus all payments or collections as of or prior to such date that are
specified in Sections 5.04(b) and 5.04(d) as applied to reimburse all unpaid
Advances with respect to such Receivable.

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

         "Owner Trust Estate" means all right, title and interest of the Trust
in and to the Receivables (other than the Warranty Receivables for which the
Seller has paid the Warranty Purchase Payment in accordance with Section 3.02
and Administrative Receivables for which the Servicer has paid the
Administrative Purchase Payment in accordance with Section 4.06), and all monies
paid thereon, and all monies accrued thereon, after the Cutoff Date; security
interests in the Financed Vehicles and any accessions thereto; the Collection
Account and all funds deposited in the Collection Account; the Yield Supplement
Account and all funds deposited in the Yield Supplement Account; all property
(including the right to receive Net Liquidation Proceeds) that shall have
secured a Receivable and that shall have been acquired by or on behalf of the
Owner Trustee; proceeds from claims on any physical damage, credit life or
disability insurance policies covering the Financed Vehicles or the Obligors;
all right to receive payments in respect of any Dealer Recourse with respect to
the Receivables; all right, title and interest of the Seller in and to the
Purchase Agreement and the Assignment; all right, title and interest of the
Owner Trustee and the Trust pursuant to this Agreement, the Yield Supplement
Agreement and the Administration Agreement; certain rebates of premiums and
other amounts relating to certain insurance policies and other items financed
under the Receivables in effect as of the Cutoff Date; and the proceeds of any
and all of the foregoing.

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

         "Paying Agent" shall have the meaning assigned to such term in the
Indenture.

                                       14
<PAGE>

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

         "Pool Balance" as of the close of business on the last day of a
Collection Period means the aggregate Principal Balance of the Receivables
(reduced by the principal balance of any Administrative Receivables, Warranty
Receivables and Defaulted Receivables) as of the close of business on such day;
provided, however, that where the Pool Balance is relevant in determining
whether the requisite percentage of Certificateholders or Noteholders (or
relevant Class or Classes of Certificates or Notes, as the case may be)
necessary to effect any consent, waiver, request or demand shall have been
obtained, the Pool Balance shall be deemed to be reduced by the amount equal to
the portion of the Pool Balance (before giving effect to this provision)
represented by the interests evidenced by any applicable Certificate or Note
registered in the name of the Seller, the Servicer or any Person actually known
to a Trust Officer of the Owner Trustee or the Indenture Trustee, as the case
may be, to be an Affiliate of the Seller or the Servicer, unless all of the
Certificates or Notes, as the case may be, are held or beneficially owned by
NMAC, NARC II or any of their Affiliates.

         "Pool Factor" for a particular Class of Notes or Certificates on any
Distribution Date means a seven-digit decimal figure indicating the principal
amount of such Class of Notes or the Certificate Balance, as the case may be, as
of the close of business on the last day of the related Collection Period as a
fraction of the Original Pool Balance.

         "Prepayment" means, with respect to any Receivable, any prepayment,
whether in part or in full, in respect of such Receivable.

         "Principal Balance" of a Receivable, as of any date of determination,
means the Amount Financed minus the sum of (i) all payments on such Receivable
allocable to principal, (ii) any refunded portion of extended warranty
protection plan or service contract costs, or of physical damage, credit life or
disability insurance premiums included in the Amount Financed, (iii) any payment
of the Administrative Purchase Payment or the Warranty Purchase Payment with
respect to the Receivable allocable to principal and (iv) any Net Liquidation
Proceeds allocable to principal.

         "Purchase Agreement" means that certain agreement, dated as of November
13, 2003, between NMAC and the Seller, relating to the purchase by the Seller
from NMAC of the Receivables.

         "Rating Agency" means, as of any date, any of the nationally recognized
statistical rating organizations that has been requested by the Seller or one of
its Affiliates to rate any Class of Notes and that is rating such Class of Notes
on such date.

         "Receivable" means any retail installment sale contract that appears on
Schedule A to this Agreement (which Schedule A may be in the form of microfiche,
CD, datatape or paper) and that has not been released by the Owner Trustee from
the Trust.

         "Receivable File" means the documents specified in Section 2.02
pertaining to a particular Receivable.

                                       15
<PAGE>

         "Record Date" means, with respect to the Notes of any Class and each
Distribution Date, the 14th day of the calendar month in which such Distribution
Date occurs, and, with respect to the Certificates or if Definitive Notes,
representing any Class of Notes, have been issued, the last day of the
Collection Period preceding the related Distribution Date. Any amount stated "as
of a Record Date" or "on a Record Date" shall give effect to (i) all
applications of collections, and (ii) all distributions to any party under this
Agreement, the Indenture and the Trust Agreement or to the related Obligor, as
the case may be, in each case as determined as of the opening of business on the
related Record Date.

         "Relevant Trustee" means (i) with respect to the control over or
appropriate designation denoting ownership or control over any property
comprising a portion of the Owner Trust Estate that either is not conveyed or
pledged to the Indenture Trustee for the benefit of the Noteholders pursuant to
the Granting Clause of the Indenture or that has been released from the lien of
the Indenture, the Owner Trustee, and (ii) with respect to any property
comprising a portion of the Trust Estate (as defined in the Indenture) that has
not been released from the lien of the Indenture, the Indenture Trustee;
provided, however, that with respect to any property that is under the joint or
separate control of a co-trustee or separate trustee under the Trust Agreement
or the Indenture, respectively, "Relevant Trustee" shall refer to either or both
of the Owner Trustee and such co-trustee or separate trustee or to either or
both of the Indenture Trustee and such co-trustee or separate trustee, as the
case may be.

         "Required Deposit Rating" shall have the meaning assigned to such term
in the definition of "Eligible Deposit Account."

         "Required Rate" means, with respect to each Collection Period, 4.16%.

         "Required Yield Supplement Amount" means, with respect to every
Distribution Date, an amount equal to the lesser of (i) the aggregate amount of
Yield Supplement Deposits that would become due for all future Distribution
Dates under the Yield Supplement Agreement, assuming (1) that payments on the
Receivables are made on their scheduled due dates, (2) that no Receivable
becomes a prepaid Receivable, and (3) a discount rate of 0.75%, and (ii) the
Initial Yield Supplement Amount.

         "Reserve Account" means the account designated as such, established and
maintained pursuant to Section 5.07.

         "Reserve Account Initial Deposit" means $9,801,825.59.

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

         "Scheduled Payment" on a Receivable means the payment required to be
made by the Obligor during each Collection Period that is sufficient to amortize
the related Principal Balance under the Simple Interest Method over the term of
the Receivable and to provide interest at the related APR.

         "Securities Account Control Agreement" means the Securities Account
Control Agreement dated as of November 13, 2003, among the Seller, the Trust,
Wells Fargo Bank

                                       16
<PAGE>

Minnesota, National Association, as Securities Intermediary thereunder and Wells
Fargo Bank Minnesota, National Association, as Indenture Trustee pursuant to
which the Reserve Account and the Yield Supplement Account will be established
and maintained.

         "Securities Intermediary" shall have the meaning assigned to such term
in the Securities Account Control Agreement.

         "Securityholders" has the meaning set forth in this Section 1.01 under
the definition of "Holder."

         "Seller" means NARC II, as the seller of the Receivables under this
Agreement, and each successor to NARC II (in the same capacity) pursuant to
Section 6.04.

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

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

         "Servicer's Certificate" means a certificate completed and executed on
behalf of the Servicer by the president, any executive vice president, any vice
president, the treasurer, any assistant treasurer, the controller or any
assistant controller of the Servicer pursuant to Section 4.08.

         "Servicing Rate" means 1.00% per annum.

         "Simple Interest Method" means the method of allocating a fixed level
payment to principal and interest pursuant to which the portion of such payment
that is allocated to interest is equal to the product of the fixed rate of
interest multiplied by the unpaid principal balance multiplied by the quotient
obtained by calculating the period of time elapsed since the preceding payment
of interest was made and dividing such period of time by 365 or 366, as
appropriate.

         "Simple Interest Receivable" means any Receivable under which the
portion of a payment allocable to interest and the portion allocable to
principal is determined in accordance with the Simple Interest Method.

         "Specified Reserve Account Balance" means with respect to any
Distribution Date, an amount equal to $9,801,825.59, provided, however, that in
the event that on any Distribution Date (a) the annualized average for the
preceding three Collection Periods (or such smaller number of Collection Periods
as have elapsed since the Cutoff Date) of the percentage equivalents of the
ratios of net losses (i.e., the net balances of all Liquidated Receivables, less
any Net Liquidation Proceeds with respect to such Liquidated Receivables from
that or prior Collection Periods) to the Pool Balance as of the first day of
each such Collection Period exceeds 2.75% or (b) the average for the preceding
three Collection Periods (or such smaller number of Collection Periods as have
elapsed since the Cutoff Date) of the percentage equivalents of the ratios of
the number of Receivables that are delinquent 60 days or more to the outstanding
number of Receivables exceeds 2.0%, then the Specified Reserve Account Balance
for such Distribution Date (and for each succeeding Distribution Date until the
relevant averages have not exceeded the specified percentages in clauses (a) and
(b) above for three successive Distribution

                                       17
<PAGE>

Dates) shall be a dollar amount equal to the greater of (i) $9,801,825.59 and
(ii) 5.0% of the Outstanding Amount of the Notes and the Certificate Balance as
of the preceding Distribution Date (after giving effect to payments of principal
made on such Distribution Date).

         "Standard & Poor's" means Standard & Poor's, a division of The
McGraw-Hill Companies, Inc.

         "Successor Servicer" means any entity appointed as a successor to the
Servicer pursuant to Section 8.02.

         "Supplemental Servicing Fee" means, with respect to any Distribution
Date, all late fees, prepayment charges and other administrative fees and
expenses or similar charges allowed by applicable law with respect to the
Receivables received by the Servicer during the related Collection Period and
any interest earned from the investment of monies in the Accounts (other than
the Yield Supplement Account) during the related Collection Period.

         "Swap Agreement" shall mean any currency swap agreement, including all
schedules and confirmations thereto, entered into by the Issuer and the Swap
Counterparty, as the same may be amended, supplemented, renewed, extended or
replaced from time to time.

         "Swap Counterparty" shall mean an unaffiliated third party, as swap
counterparty under the Swap Agreement, or any successor or replacement swap
counterparty from time to time under the Swap Agreement.

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

         "Trust" means the Issuer.

         "Trust Agreement" means the Trust Agreement, dated October 4, 2002, as
amended by the Amended and Restated Trust Agreement, dated as of November 13,
2003, between the Seller and Wilmington Trust Company, as Owner Trustee.

         "Trust Collection Account" shall have the meaning assigned to such term
in Section 5.01(c).

         "Trust Estate" means all money, instruments, rights and other property
that are subject or intended to be subject to the lien and security interest of
the Indenture for the benefit of the Noteholders (including, without limitation,
all property and interests granted to the Indenture Trustee pursuant to the
Granting Clause of the Indenture), including all proceeds thereof.

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

                                       18
<PAGE>

of the Owner Trustee with direct responsibility for the administration of the
Trust Agreement and the Basic Documents on behalf of the Owner Trustee.

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

         "USAP" shall have the meaning assigned to such term in Section 4.10.

         "Warranty Purchase Payment," for any Warranty Receivable as of the last
day of any Collection Period, means the sum of the Principal Balance thereof as
of the beginning of such Collection Period plus interest accrued thereon through
the due date for the Obligor's payment in such Collection Period, at the related
APR, after giving effect to the receipt of monies collected (from whatever
source other than Advances) on such Warranty Receivable, if any, during such
Collection Period.

         "Warranty Receivable" means a Receivable purchased as of the close of
business on the last day of a Collection Period by the Seller pursuant to
Section 3.02.

         "Yield Supplement Account" means the segregated trust account
established and maintained for the benefit of the Noteholders pursuant to
Section 5.08(a).

         "Yield Supplement Agreement" means the agreement, dated as of the date
of this Agreement, among the Seller, NMAC, Wells Fargo Bank Minnesota, National
Association, as Indenture Trustee, and the Trust, substantially in the form
attached hereto as Exhibit A.

         "Yield Supplement Amount" means, with respect to any Distribution Date,
the aggregate amount on deposit in the Yield Supplement Account after giving
effect to the withdrawal therefrom of the related Yield Supplement Deposit and
without regard to any amounts on deposit therein in respect of interest or
investment earnings earned on the investment of amounts on deposit therein in
Eligible Investments for any period.

         "Yield Supplement Deposit" means, with respect to any Distribution
Date, the amount by which (a) the aggregate amount of interest that would have
been due during the related Collection Period on all Yield Supplemented
Receivables if such Yield Supplemented Receivables bore interest at the Required
Rate exceeds (b) the amount of interest accrued on such Yield Supplemented
Receivables at their respective APRs and due during such Collection Period.

         "Yield Supplemented Receivable" means any Receivable that has an APR
less than the Required Rate.

         SECTION 1.02 Usage of Terms. With respect to all terms in this
Agreement, the singular includes the plural and the plural the singular; words
importing any gender include the other genders; references to "writing" include
printing, typing, lithography and other means of reproducing words in a visible
form; references to agreements and other contractual instruments include all
subsequent amendments, amendments and restatements and supplements thereto or
changes therein entered into in accordance with their respective terms and not
prohibited by this Agreement; references to Persons include their permitted
successors and assigns; references to

                                       19
<PAGE>

laws include their amendments and supplements, the rules and regulations
thereunder and any successors thereto; and the term "including" means "including
without limitation."

                                   ARTICLE II

                            Conveyance of Receivables

         SECTION 2.01 Conveyance of Receivables.

                  (a) In consideration of the promises and the agreements,
         provisions and covenants herein contained and other good and valuable
         consideration to be delivered to the Seller hereunder, on behalf of the
         Issuer, the Seller does hereby sell, transfer, assign and otherwise
         convey to the Issuer, without recourse (but subject to the Seller's
         obligations in this Agreement):

                           (i)      all right, title and interest of the Seller
         in and to the Receivables (including all related Receivable Files)
         listed in Schedule A hereto and all monies due thereon or paid
         thereunder or in respect thereof (including proceeds of the repurchase
         of Receivables by the Seller pursuant to Section 3.02 or the purchase
         of Receivables by the Servicer pursuant to Section 4.06 or 9.01) after
         the Cutoff Date;

                           (ii)     the right of the Seller in the security
         interests in the Financed Vehicles granted by the Obligors pursuant to
         the Receivables and any related property;

                           (iii)    the right of the Seller in any proceeds from
         claims on any physical damage, credit life, credit disability or other
         insurance policies covering the Financed Vehicles or the Obligors;

                           (iv)     the right of the Seller through NMAC to
         receive payments in respect of any Dealer Recourse with respect to the
         Receivables;

                           (v)      the rights of the Seller under the Purchase
         Agreement and the Assignment;

                           (vi)     the right of the Seller to realize upon any
         property (including the right to receive future Net Liquidation
         Proceeds) that shall have secured a Receivable;

                           (vii)    the right of the Seller in rebates of
         premiums and other amounts relating to insurance policies and other
         items financed under the Receivables in effect as of the Cutoff Date;

                           (viii)   all other assets comprising the Owner Trust
         Estate; and

                           (ix)     all proceeds of the foregoing.

                                       20
<PAGE>

                  On the Closing Date, the Seller shall deliver to, or to the
         order of, the Issuer all property conveyed pursuant to this Section
         2.01(a), except for monies received in respect of the Receivables after
         the Cutoff Date and before the Closing Date which shall be deposited by
         NMAC (in its individual capacity or as the Servicer) into the
         Collection Account no later than the first Record Date after the
         Closing Date. Concurrently therewith and in exchange therefor, the
         Issuer shall deliver to, or to the order of, the Seller the Notes and
         the Certificates.

                  (b) It is the intention of the Seller that the transfer and
         assignment contemplated by this Agreement shall constitute a sale of
         the Receivables from the Seller to the Issuer and the beneficial
         interest in and title to the Receivables shall not be part of the
         Seller's estate in the event of the filing of a bankruptcy petition by
         or against the Seller under any bankruptcy law. The Seller agrees to
         execute and file all filings (including filings under the UCC)
         necessary in any jurisdiction to provide third parties with notice of
         the sale of the Receivables pursuant to this Agreement and to perfect
         such sale under the UCC.

                  (c) Although the parties hereto intend that the transfer and
         assignment contemplated by this Agreement be a sale, if such transfer
         and assignment is deemed to be other than a sale, the parties intend
         that all filings described in the foregoing paragraph shall give the
         Issuer a first priority perfected security interest in, to and under
         the Receivables, and other property conveyed hereunder and all proceeds
         of any of the foregoing. This Agreement shall be deemed to be the grant
         of a security interest from the Seller to the Issuer, and the Issuer
         shall have all the rights, powers and privileges of a secured party
         under the UCC.

                  (d) In connection with the foregoing conveyance, the Servicer
         shall maintain its computer system so that, from and after the time of
         sale of the Receivables to the Issuer under this Agreement, the
         Servicer's master computer records that refer to any Receivable
         indicate clearly the interest of the Issuer in such Receivables and
         that such Receivable is owned by the Issuer and controlled by the
         Issuer. Indication of the Issuer's ownership of a Receivable shall be
         deleted from or modified on the Servicer's computer systems when, and
         only when, the Receivable has been paid in full, repurchased or
         assigned pursuant to this Agreement.

                  (e) Ownership and control of the Receivables, as between the
         Issuer and the Indenture Trustee (on behalf of the Noteholders and the
         Certificateholders) shall be governed by the Indenture.

         SECTION 2.02 Custody of Receivable Files. To assure uniform quality in
servicing the Receivables and to reduce administrative costs, the Issuer, upon
the execution and delivery of this Agreement, appoints the Servicer, and the
Servicer accepts such appointment, to act as the agent of the Issuer as
custodian of the following documents or instruments that are hereby
constructively delivered to the Issuer with respect to each Receivable:

                  (a) the original of such Receivable (or a photocopy or other
         image thereof that the Servicer shall keep on file in accordance with
         its customary procedures) fully executed by the Obligor;

                                       21
<PAGE>

                  (b) the original credit application fully executed by the
         related Obligor (or a photocopy or other image thereof that the
         Servicer shall keep on file in accordance with its customary
         procedures);

                  (c) the original certificate of title (or a photocopy or other
         image thereof or such documents that the Servicer shall keep on file in
         accordance with its customary procedures), evidencing the security
         interest of the Servicer in the related Financed Vehicle; and

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

         SECTION 2.03 Acceptance by Issuer. The Issuer acknowledges its
acceptance pursuant to this Agreement, of all right, title and interest in and
to the Receivables and other property conveyed by the Seller pursuant to this
Agreement and declares and shall declare from and after the date hereof that the
Issuer holds and shall hold such right, title and interest, upon the terms and
conditions set forth in this Agreement.

                                  ARTICLE III

                                The Receivables

         SECTION 3.01 Representations and Warranties of the Seller with Respect
to the Receivables. The Seller makes the following representations and
warranties as to the Receivables on which the Issuer is deemed to have relied in
acquiring the Receivables. Such representations and warranties speak as of the
execution and delivery of this Agreement and as of the Closing Date, but shall
survive the sale, transfer and assignment of the Receivables to the Issuer and
the pledge thereof to the Indenture Trustee pursuant to the Indenture.

                  (a) Characteristics of Receivables. Each Receivable (i) has
         been originated in the United States of America by a Dealer for the
         retail sale of a Financed Vehicle in the ordinary course of such
         Dealer's business, has been fully and properly executed by the parties
         thereto, has been purchased by the Seller from NMAC pursuant to the
         Purchase Agreement, which in turn has purchased such Receivables from
         such Dealer under an existing dealer agreement with NMAC, and has been
         validly assigned by such Dealer to NMAC, which in turn has been validly
         assigned pursuant to the Purchase Agreement by NMAC to the Seller in
         accordance with its terms, (ii) created a valid, subsisting and
         enforceable security interest in favor of NMAC in such Financed
         Vehicle, which security interest has been validly assigned pursuant to
         the Purchase Agreement by NMAC to the Seller, which in turn has been
         validly assigned by the Seller to the Issuer in accordance with the
         terms hereof, (iii) contains customary and enforceable provisions such
         that the rights and remedies of the holder thereof are adequate for
         realization against the collateral of the benefits of the security,
         (iv) provides for level monthly payments (provided that the payment in
         the first or last month in the life of the Receivable may be minimally
         different from the level payment) that fully amortize the Amount
         Financed over an

                                       22
<PAGE>

         original term of no greater than 63 months, and (v) provides for
         interest at the related APR.

                  (b) Schedule of Receivables. The information set forth in
         Schedule A to this Agreement was true and correct in all material
         respects as of the opening of business on the Cutoff Date; the
         Receivables were selected from NMAC's retail installment sale contracts
         (other than contracts originated in Alabama, Hawaii or Maine) meeting
         the criteria of the Trust set forth in this Agreement; and no selection
         procedures believed to be adverse to the Securityholders were utilized
         in selecting the Receivables.

                  (c) Compliance with Law. Each Receivable, the origination of
         such Receivable, and the sale of the Financed Vehicle complied at the
         time it was originated or made and at the execution of this Agreement
         complies in all material respects with all requirements of applicable
         federal, state and local laws, and regulations thereunder, including
         usury laws, the Federal Truth-in-Lending Act, the Equal Credit
         Opportunity Act, the Fair Credit Reporting Act, the Fair Debt
         Collection Practices Act, the Federal Trade Commission Act, the
         Magnuson-Moss Warranty Act, the Soldiers and Sailors Civil Relief Act
         of 1940, the Federal Reserve Board's Regulations B and Z, and state
         adaptations of the National Consumer Credit Protection Act and of the
         Uniform Consumer Credit Code, state "Lemon Laws" designed to prevent
         fraud in the sale of automobiles and other consumer credit laws and
         equal credit opportunity and disclosure laws.

                  (d) Binding Obligation. Each Receivable represents the
         genuine, legal, valid and binding payment obligation in writing of the
         Obligor, enforceable by the holder thereof in accordance with its terms
         subject to the effect of bankruptcy, insolvency, reorganization,
         moratorium or other similar laws affecting creditors' rights generally
         and by general equitable principles.

                  (e) Security Interest in Financed Vehicle. (i) Immediately
         prior to the sale, assignment and transfer thereof to the Issuer, each
         Receivable was secured by a validly perfected first priority security
         interest in the Financed Vehicle in favor of NMAC as secured party or
         all necessary and appropriate actions shall have been commenced that
         would result in the valid perfection of a first priority security
         interest in the Financed Vehicle in favor of NMAC as secured party, and
         (ii) as of the Cutoff Date, according to the records of NMAC, no
         Financed Vehicle has been repossessed and the possession thereof not
         reinstated.

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

                  (g) No Waiver. No provision of a Receivable has been waived in
         a manner that is prohibited by the provisions of Section 4.01 or that
         would cause such Receivable to fail to meet all of the other
         requirements and warranties made by the Seller herein with respect
         thereto.

                                       23
<PAGE>

                  (h) No Defenses. No Receivable is subject to any right of
         rescission, setoff, counterclaim or defense, including the defense of
         usury, and the operation of any of the terms of any Receivable, or the
         exercise of any right thereunder, will not render such Receivable
         unenforceable in whole or in part or subject such Receivable to any
         right of rescission, setoff, counterclaim or defense, including the
         defense of usury, and no such right of rescission, setoff, counterclaim
         or defense has been asserted with respect thereto.

                  (i) No Liens. To the Seller's knowledge, no liens have been
         filed for work, labor or materials relating to a Financed Vehicle that
         shall be liens prior to, or equal or coordinate with, the security
         interest in the Financed Vehicle granted by the Receivable.

                  (j) No Default. Except for payment defaults continuing for a
         period of not more than 29 days as of the Cutoff Date, no default,
         breach, violation or event permitting acceleration under the terms of
         any Receivable has occurred; and no continuing condition that with
         notice or the lapse of time would constitute a default, breach,
         violation or event permitting acceleration under the terms of any
         Receivable has arisen (other than deferrals and waivers of late payment
         charges or fees permitted hereunder).

                  (k) Insurance. NMAC, in accordance with its customary
         procedures, has determined at the time of origination of each
         Receivable that the related Obligor has agreed to obtain physical
         damage insurance covering the Financed Vehicle and the Obligor is
         required under the terms of the related Receivable to maintain such
         insurance.

                  (l) Title. It is the intention of the Seller that the transfer
         and assignment herein contemplated constitute a sale of the Receivables
         from the Seller to the Trust and that the beneficial interest in and
         title to the Receivables not be part of the Seller's estate in the
         event of the filing of a bankruptcy petition by or against the Seller
         under any bankruptcy law. Immediately prior to the transfer and
         assignment herein contemplated, the Seller had good and marketable
         title to each Receivable free and clear of all Liens, and immediately
         upon the transfer thereof, the Issuer, for the benefit of the
         Noteholders and the Certificateholders, shall have good and marketable
         title to each Receivable, free and clear of all Liens and rights of
         others. Each Receivable File contains the original certificate of title
         (or a photocopy or image thereof) or evidence that an application for a
         certificate of title has been filed. To the extent the transfer and
         assignment contemplated under this Agreement is deemed to be other than
         a sale, this Agreement and all filings described under this Agreement
         create a valid and continuing security interest (as defined in the
         applicable UCC) in the Receivables in favor of the Issuer, which
         security interest is prior to all other Liens, and is enforceable as
         such as against creditors of and purchasers from the Seller.

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

                  (n) All Filings Made. All filings (including, without
         limitation, UCC filings) necessary in any jurisdiction to give the
         Relevant Trustee a first priority perfected

                                       24
<PAGE>

         ownership interest in the Receivables have been made or have been
         delivered to the Relevant Trustee in a form suitable for filing.

                  (o) Chattel Paper. Each Receivable constitutes "tangible
         chattel paper," as such term is defined in the UCC.

                  (p) Simple Interest Receivables. All of the Receivables are
         Simple Interest Receivables.

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

                  (r) No Amendments. No Receivable has been amended such that
         the amount of the Obligor's Scheduled Payments has been increased.

                  (s) APR. The APR of each Receivable equals or exceeds 0.00%.

                  (t) Maturity. As of the Cutoff Date, each Receivable had a
         remaining term to maturity of not less than 3 payments and not greater
         than 57 payments.

                  (u) Balance. Each Receivable had an original Principal Balance
         of not more than $50,000.00 and, as of the Cutoff Date, had a principal
         balance of not less than $2,000.00 and not more than $47,000.00.

                  (v) Delinquency. No Receivable was more than 29 days past due
         as of the Cutoff Date, and no Receivable has been extended by more than
         two months.

                  (w) Bankruptcy. No Obligor was the subject of a bankruptcy
         proceeding (according to the records of NMAC) as of the Cutoff Date.

                  (x) Transfer. Each Receivable prohibits the sale or transfer
         of the Financed Vehicle without the consent of NMAC.

                  (y) New, Near-New and Used Vehicles. Each Financed Vehicle was
         a new, near-new or used automobile or light-duty truck at the time the
         related Obligor executed the retail installment sale contract.

                  (z) Origination. Each Receivable has an origination date on or
         after December 30, 1998.

                  (aa) Receivable Files. The Receivable Files shall be kept at
         one or more of the locations listed in Schedule B hereto. The
         Receivable Files that constitute or evidence the Receivables do not
         have any marks or notations indicating that they have been pledged,
         assigned or otherwise conveyed by the Seller to any Person other than
         the Issuer. All financing statements filed or to be filed against the
         Seller in favor of the Issuer in connection herewith describing the
         Receivables contain a statement to the following effect: "A purchase of
         or security interest in any collateral described in this

                                       25
<PAGE>

         financing statement, except as permitted in the Sale and Servicing
         Agreement, will violate the rights of the Issuer."

                  (bb)     Forced-Placed Insurance Premiums. No contract
         relating to any Receivable has had forced-placed insurance premiums
         added to the amount financed.

                  (cc)     No Fraud or Misrepresentation. To the knowledge of
         the Seller, no Receivable was originated by a Dealer and sold by such
         Dealer to the Seller with any conduct constituting fraud or
         misrepresentation on the part of such Dealer.

                  (dd)     No Further Amounts Owed on the Receivables. No
         further amounts are owed by the Seller to any Obligor under the
         Receivables.

                  (ee)     No Pledge or Assignment of Receivables. Other than
         the security interest granted to the Issuer pursuant to this Agreement,
         the Seller has not pledged, assigned, sold, granted a security interest
         in, or otherwise conveyed any of the Receivables. The Seller has not
         authorized the filing of and is not aware of any financing statements
         against the Seller that include a description of collateral covering
         the Receivables other than any financing statement relating to the
         security interest granted to the Issuer hereunder or a financing
         statement as to which the security interest covering the Receivables
         has been released. The Seller is not aware of any judgment or tax lien
         filings against the Seller.

                  (ff)     No Government Obligors. None of the Receivables shall
         be due from the United States or any state, or from any agency,
         department subdivision or instrumentality thereof.

         SECTION 3.02 Repurchase upon Breach. The Seller, the Servicer or the
Issuer, as the case may be, shall inform the other parties to this Agreement and
the Indenture Trustee promptly, in writing, upon the discovery of any breach of
the Seller's representations and warranties pursuant to Section 3.01 that
materially and adversely affects the interests of the Securityholders in any
Receivable. Unless the breach shall have been cured by the last day of the
second Collection Period following such discovery (or, at the Seller's election,
the last day of the first Collection Period following such discovery), the
Seller shall be obligated (whether or not such breach was known to the Seller on
the Closing Date), and the Issuer shall enforce the obligation of the Seller
under this Agreement and, if necessary, the Seller shall enforce the obligation
of NMAC under the Purchase Agreement, to repurchase any Receivable the
Securityholders' interest in which was materially and adversely affected by the
breach as of such last day. A breach of the representation in Section
3.01(a)(iv), (t) or (u) shall be deemed to affect materially and adversely the
related Receivable. In consideration of the purchase of the Receivables, the
Seller shall remit the Warranty Purchase Payment in the manner specified in
Section 5.05. For purposes of this Section 3.02, the Warranty Purchase Payment
of a Receivable that is not consistent with the Seller's warranty pursuant to
Section 3.01(a)(iv) shall include such additional amount as shall be necessary
to provide the full amount of interest as contemplated therein to the date of
repurchase. The sole remedy of the Trust, the Indenture Trustee (by operation of
the assignment of the Issuer's rights hereunder pursuant to the Indenture) or
any Securityholder with respect to a breach of the Seller's representations and
warranties pursuant to

                                       26

<PAGE>

Section 3.01 shall be to require the Seller to repurchase Receivables pursuant
to this Section and to enforce the obligation of NMAC to the Seller to
repurchase such Receivables pursuant to the Purchase Agreement.

         SECTION 3.03 Duties of Servicer as Custodian.

                  (a)      Safekeeping. The Servicer shall hold the Receivable
         Files as custodian for the benefit of the Issuer and maintain such
         accurate and complete accounts, records and computer systems pertaining
         to each Receivable File as shall enable the Issuer to comply with this
         Agreement. In performing its duties as custodian, the Servicer shall
         act with reasonable care, using that degree of skill and attention that
         the Servicer exercises with respect to the receivable files relating to
         all comparable automotive receivables that the Servicer services for
         itself or others. In accordance with its customary practices with
         respect to its retail installment sale contracts, the Servicer shall
         conduct, or cause to be conducted, periodic audits of the Receivable
         Files held by it under this Agreement and of the related accounts,
         records and computer systems, in such a manner as shall enable the
         Issuer, the Owner Trustee or the Indenture Trustee to verify the
         accuracy of the Servicer's record keeping. The Servicer shall promptly
         report to the Issuer and the Indenture Trustee any material failure on
         its part to hold the Receivable Files and maintain its accounts,
         records and computer systems as herein provided in all material
         respects and shall promptly take appropriate action to remedy any such
         material failure. Nothing herein shall be deemed to require an initial
         review or any periodic review by the Issuer, the Owner Trustee or the
         Indenture Trustee of the Receivable Files.

                  (b)      Maintenance of and Access to Records. The Servicer
         shall maintain each Receivable File at one of its offices specified in
         Schedule B or at such other office as shall be specified to the Owner
         Trustee and the Indenture Trustee by written notice from the Servicer
         not later than 90 days after any change in location. The Servicer shall
         make available to the Owner Trustee and the Indenture Trustee or their
         respective duly authorized representatives, attorneys or auditors the
         Receivable Files and the related accounts, records and computer systems
         maintained by the Servicer at such times during normal business hours
         as the Owner Trustee or the Indenture Trustee shall instruct. The
         Servicer shall permit the Owner Trustee, the Indenture Trustee and
         their respective agents at any time during normal business hours upon
         reasonable prior notice to inspect, audit and make copies of and
         abstracts from the Servicer's records regarding any Receivable.

                  (c)      Release of Documents. Upon the occurrence and during
         the continuation of a Servicer Default or to the extent necessary for
         the Indenture Trustee to comply with its obligations under this
         Agreement, the Servicer shall, upon instruction from the Indenture
         Trustee, release any Receivable File to the Indenture Trustee, the
         Indenture Trustee's agent or the Indenture Trustee's designee, as the
         case may be, at such place or places as the Indenture Trustee may
         designate, as soon as practicable.

         SECTION 3.04 Instructions; Authority To Act. The Servicer shall be
deemed to have received proper instructions with respect to the Receivable Files
upon its receipt of written instructions signed by a Trust Officer of the Owner
Trustee or the Indenture Trustee.

                                       27

<PAGE>

         SECTION 3.05 Custodian's Indemnification. The Servicer, as custodian,
shall indemnify the Issuer, the Owner Trustee and the Indenture Trustee for any
and all liabilities, obligations, losses, compensatory damages, payments, costs
or expenses of any kind whatsoever that may be imposed on, incurred by or
asserted against any of them as the result of any improper act or omission in
any way relating to the maintenance and custody by the Servicer as custodian of
the Receivable Files; provided, however, that the Servicer shall not be liable
to the Owner Trustee for any portion of any such amount resulting from the
willful misfeasance, bad faith or negligence of the Owner Trustee, and the
Servicer shall not be liable to the Indenture Trustee for any portion of any
such amount resulting from the willful misfeasance, bad faith or negligence of
the Indenture Trustee.

         SECTION 3.06 Effective Period and Termination. The Servicer's
appointment as custodian shall become effective as of the Cutoff Date, and shall
continue in full force and effect until terminated pursuant to this Section. If
NMAC shall resign as Servicer in accordance with the provisions of this
Agreement or if all of the rights and obligations of any Servicer shall have
been terminated under Section 8.01, the appointment of NMAC as custodian may be
terminated by the Indenture Trustee or by the Holders of Notes evidencing not
less than 25% of the Outstanding Amount of the Notes (but excluding for purposes
of such calculation and action all Notes held or beneficially owned by NMAC,
NARC II or any of their Affiliates unless all of the Notes are held or
beneficially owned by NMAC, NARC II or any of their Affiliates) or, with the
consent of Holders of the Notes evidencing not less than 25% of the Outstanding
Amount of the Notes, by the Owner Trustee or by the Certificateholders
evidencing not less than 25% of the Certificate Balance (but excluding for
purposes of such calculation and action all Certificates held or beneficially
owned by NMAC, NARC II or any of their Affiliates unless all of the Certificates
are held or beneficially owned by NMAC, NARC II or any of their Affiliates), in
the same manner as the Indenture Trustee or such Holders may terminate the
rights and obligations of the Servicer under Section 8.01. The Indenture Trustee
or, with the consent of the Indenture Trustee, the Issuer may terminate the
Servicer's appointment as custodian, with cause, at any time upon written
notification to the Servicer, and without cause upon 30 days' prior written
notification to the Servicer. As soon as practicable after any termination of
such appointment, the Servicer shall deliver the Receivable Files and the
related accounts and records maintained by the Servicer to the Relevant Trustee
or the agent thereof at such place or places as the Relevant Trustee may
reasonably designate.

                                   ARTICLE IV

                   Administration and Servicing of Receivables

         SECTION 4.01 Duties of Servicer.

                  (a)      The Servicer shall manage, service, administer and
         make collections on the Receivables with reasonable care, using that
         degree of skill and attention that the Servicer exercises with respect
         to all comparable receivables that it services for itself or others.
         Except with respect to Defaulted Receivables, Administrative
         Receivables or Warranty Receivables, the Servicer shall not change the
         amount of or reschedule the due

                                       28

<PAGE>

         date of any Scheduled Payment, change the APR of, or extend any
         Receivable except as provided herein or change any material term of a
         Receivable; provided, however, that:

                           (1)      if a default, breach, violation, delinquency
                  or event permitting acceleration under the terms of any
                  Receivable shall have occurred or, in the judgment of the
                  Servicer, is imminent, the Servicer may (A) extend such
                  Receivable for credit related reasons that would be acceptable
                  to the Servicer with respect to comparable new, near-new or
                  used automobile or light-duty truck receivables that it
                  services for itself, but only if (i) the final scheduled
                  payment date of such Receivable as extended would not be later
                  than the last day of the Collection Period preceding the Final
                  Scheduled Distribution Date for the Class A-5 Notes, and (ii)
                  the rescheduling or extension would not modify the terms of
                  such Receivable in a manner that would constitute a
                  cancellation of such Receivable and the creation of a new
                  receivable for federal income tax purposes; or (B) reduce an
                  Obligor's monthly payment amount in the event of a prepayment
                  resulting from refunds of credit life and disability insurance
                  premiums and service contracts and make similar adjustments in
                  an Obligor's payment terms to the extent required by law;

                                    (2)      if at the end of the scheduled term
                  of any Receivable, the outstanding principal amount thereof is
                  such that the final payment to be made by the related Obligor
                  is larger than the regularly scheduled payment of principal
                  and interest made by such Obligor, the Servicer may permit
                  such Obligor to pay such remaining principal amount in more
                  than one payment of principal and interest, provided that the
                  last such payment shall be due on or prior to the last day of
                  the Collection Period preceding the Final Scheduled
                  Distribution Date for the Class A-5 Notes; and

                                    (3)      the Servicer may in its discretion
                  waive any late payment charge or any other fees that may be
                  collected in the ordinary course of servicing a Receivable.

                  (b)      The Servicer's duties shall include collection and
         posting of all payments, responding to inquiries of Obligors on the
         Receivables, investigating delinquencies, sending remittance advises to
         Obligors, reporting tax information to Obligors, accounting for
         collections, furnishing monthly and annual statements to the Owner
         Trustee and the Indenture Trustee with respect to distributions and
         making Advances pursuant to Section 5.04. In addition, the Servicer's
         duties shall include the execution and delivery of any filings,
         certificates, affidavits or other instruments required under the
         Sarbanes-Oxley Act of 2002, to the extent permitted by applicable law.

                  (c)      Without limiting the generality of the foregoing, the
         Servicer is authorized and empowered to execute and deliver, on behalf
         of itself, the Trust, the Owner Trustee, the Indenture Trustee and the
         Securityholders or any of them, any and all instruments of satisfaction
         or cancellation, or partial or full release or discharge, and all other
         comparable instruments, with respect to the Receivables or to the
         Financed Vehicles securing the Receivables. If the Servicer shall
         commence a legal proceeding to enforce a

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         Receivable, the Issuer (in the case of a Receivable other than an
         Administrative Receivable or a Warranty Receivable) shall thereupon be
         deemed to have automatically assigned, solely for the purpose of
         collection, such Receivable to the Servicer. If in any enforcement suit
         or legal proceeding it shall be held that the Servicer may not enforce
         a Receivable on the ground that it shall not be a real party in
         interest or a holder entitled to enforce such Receivable, the Issuer
         shall, at the Servicer's expense and direction, take steps to enforce
         the Receivable, including bringing suit in its name or the name of the
         Indenture Trustee or the Securityholders. The Issuer shall furnish the
         Servicer with any powers of attorney and other documents reasonably
         necessary or appropriate to enable the Servicer to carry out its
         servicing and administrative duties hereunder.

                  (d)      The Servicer, at its expense, shall obtain on behalf
         of the Trust all licenses, including those required under the
         Pennsylvania Motor Vehicle Sales Finance Act and the Maryland Financial
         Institutions Article, required by the laws of any jurisdiction to be
         held by the Trust in connection with ownership of the Receivables, and
         shall make all filings and pay all fees as may be required in
         connection therewith during the term hereof. Nothing in the foregoing
         or in any other section of this Agreement shall be construed to prevent
         the Servicer from implementing new programs, whether on an
         intermediate, pilot or permanent basis, or on a regional or nationwide
         basis, or from modifying its standards, policies and procedures as long
         as, in each case, the Servicer does or would implement such programs or
         modify its standards, policies and procedures in respect of comparable
         assets serviced for itself in the ordinary course of business.

         SECTION 4.02 Collection of Receivable Payments. The Servicer shall make
reasonable efforts to collect all payments called for under the terms and
provisions of the Receivables as and when the same shall become due and shall
follow such collection procedures as it follows with respect to all comparable
receivables that it services for itself or others.

         SECTION 4.03 Realization upon Receivables. On behalf of the Trust, the
Servicer shall use commercially reasonable efforts, consistent with its
customary servicing procedures, to repossess or otherwise convert the ownership
of the Financed Vehicle securing any Receivable as to which the Servicer shall
have determined eventual payment in full is unlikely. The Servicer shall follow
such customary and usual practices and procedures as it shall deem necessary or
advisable in its servicing of comparable receivables, which may include
reasonable efforts to realize upon any Dealer Recourse and selling the related
Financed Vehicle at public or private sale. The foregoing shall be subject to
the provision that, in any case in which the Financed Vehicle shall have
suffered damage, the Servicer shall not expend funds in connection with the
repair or the repossession of such Financed Vehicle unless it shall determine in
its discretion that such repair and/or repossession will increase the Net
Liquidation Proceeds.

         SECTION 4.04 Maintenance of Security Interests in Financed Vehicles.
The Servicer shall, in accordance with its customary servicing procedures, take
such steps as are necessary to maintain perfection of the security interest
created by each Receivable in the related Financed Vehicle. The Servicer is
hereby authorized to take such steps as are necessary to re-perfect such
security interest on behalf of the Issuer and the Indenture Trustee in the event
of the relocation of a Financed Vehicle or for any other reason. If the
assignment of a Receivable to the Trust is insufficient, without a notation on
the related Financed Vehicle's certificate of title, to grant to

                                       30

<PAGE>

the Trust a first priority perfected security interest in the related Financed
Vehicle, the Servicer hereby agrees to serve as the agent of the Trust for the
purpose of perfecting the security interest of the Trust in such Financed
Vehicle and agrees that the Servicer's listing as the secured party on the
certificate of title is in this capacity as agent of the Trust.

         SECTION 4.05 Covenants of Servicer.

                  (a)      The Servicer shall not release the Financed Vehicle
         securing any Receivable from the security interest granted by such
         Receivable in whole or in part except in the event of payment in full
         by or on behalf of the Obligor thereunder or repossession.

                  (b)      The Servicer shall not do anything to impair the
         rights of the Securityholders in the Receivables.

                  (c)      Except with respect to Defaulted Receivables,
         Administrative Receivables or Warranty Receivables, the Servicer shall
         not alter the APR of any Receivable or forgive payments on a
         Receivable. Except as provided in Section 4.01, the Servicer shall not
         modify the number of payments under a Receivable, increase the amount
         financed under a Receivable, or extend the due date for any payment on
         a Receivable.

                  (d)      If the Servicer shall determine not to make an
         Advance related to delinquency or non-payment of any Receivable
         pursuant to Section 5.04 because it determines that such Advance would
         not be recoverable from subsequent collections on such Receivable, such
         Receivable shall be designated by the Servicer to be a Defaulted
         Receivable, provided that such Receivable otherwise meets the
         definition of a Defaulted Receivable.

         SECTION 4.06 Purchase of Receivables upon Breach. The Servicer or the
Issuer shall inform the other party and the Indenture Trustee promptly, in
writing, upon the discovery of any breach by the Servicer of its obligations
under the second sentence of Section 4.01 or under Section 4.02, 4.04 or 4.05
that would materially and adversely affect any Receivable. Unless the breach
shall have been cured by the last day of the second Collection Period following
such discovery (or, at the Servicer's election, the last day of the first
Collection Period following discovery), the Servicer shall (whether or not such
breach was known to the Servicer on the Closing Date) purchase any Receivable
materially and adversely affected by such breach as of such last day. In
consideration of such Receivable, the Servicer shall remit the Administrative
Purchase Payment (as reduced by any Outstanding Advances with respect to such
Receivable) in the manner specified in Section 5.05. For the purposes of this
Section 4.06, the Administrative Purchase Payment shall consist in part of a
release by the Servicer of all rights of reimbursement with respect to
Outstanding Advances with respect to the purchased Receivable. The sole remedy
of the Indenture Trustee, the Owner Trustee, the Trust or the Securityholders
against the Servicer with respect to a breach by the Servicer of its obligations
under the second sentence of Section 4.01 or under Section 4.02, 4.04 or 4.05
shall be to require the Servicer to purchase Receivables pursuant to this
Section 4.06.

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<PAGE>

         SECTION 4.07 Servicing Fee and Expenses. As compensation for the
performance of its obligations hereunder, the Servicer shall be entitled to
receive on each Distribution Date the Total Servicing Fee. Except to the extent
otherwise provided herein, the Servicer shall be required to pay all expenses
incurred by it in connection with its activities under this Agreement (including
fees and disbursements of the Indenture Trustee and independent accountants,
taxes imposed on the Servicer, expenses incurred in connection with
distributions and reports to Securityholders and all other fees and expenses not
expressly stated under this Agreement to be for the account of the
Securityholders).

         SECTION 4.08 Servicer's Certificate.

                  (a)      On or before the tenth day of each month (or, if such
         tenth day is not a Business Day, then on the next succeeding Business
         Day), the Servicer shall deliver to the Owner Trustee, each Paying
         Agent, and the Indenture Trustee, with a copy to each Rating Agency, a
         Servicer's Certificate containing all information necessary to make the
         distributions pursuant to Sections 5.06, 5.07 and 5.08 (including the
         amount of the aggregate collections on the Receivables; the aggregate
         Advances to be made by the Servicer, if any, the aggregate
         Administrative Purchase Payments for any Administrative Receivables to
         be purchased by the Servicer, and the aggregate Warranty Purchase
         Payments for any Warranty Receivables to be purchased by the Seller)
         for the Collection Period preceding the date of such Servicer's
         Certificate, all information necessary for the Owner Trustee to send
         statements to the Certificateholders and the Indenture Trustee to send
         statements to the Noteholders pursuant to the Trust Agreement or
         Indenture, as the case may be. Each of the Owner Trustee and the
         Indenture Trustee may conclusively rely on the information in any
         Servicer's Certificate and shall have no duty to confirm or verify the
         contents thereof.

                  (b)      Concurrently with delivery of the Servicer's
         Certificate in each month, the Servicer shall deliver to the
         underwriters of the Notes the Note Factor for each Class of Notes, the
         Certificate Factor, and the Pool Factor for each Class of Notes and for
         the Certificates, in each case as of the close of business on the
         Distribution Date occurring in such month.

         SECTION 4.09 Annual Statement as to Compliance; Notice of Default.

                  (a)      The Servicer shall deliver to the Owner Trustee, the
         Indenture Trustee and each of the Rating Agencies, on or before the
         last day of the third month after the end of each fiscal year of the
         Servicer, beginning June 30, 2004, an Officers' Certificate with
         respect to the prior fiscal year of the Servicer ended such calendar
         year (or with respect to the initial Officer's Certificate, the period
         from the date of the initial issuance of the Notes to March 31, 2004),
         stating that (i) a review of the activities of the Servicer during the
         preceding 12-month (or shorter) period and of its performance under
         this Agreement has been made under such officer's supervision and (ii)
         to the best of such officer's knowledge, based on such review, the
         Servicer has fulfilled all its obligations under this Agreement
         throughout such twelve-month (or shorter) period, or, if there has been
         a default in the fulfillment of any such obligation, specifying each
         such default known to such officer and the nature and status thereof. A
         copy of such Officer's Certificate may

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<PAGE>

         be obtained by any Certificateholder or Noteholder by a request in
         writing to the Owner Trustee or the Indenture Trustee addressed as set
         forth in Section 10.03 hereof.

                  (b)      The Servicer shall deliver to the Owner Trustee, the
         Indenture Trustee and each Rating Agency, promptly after having
         obtained knowledge thereof, but in no event later than five Business
         Days thereafter, written notice in an Officer's Certificate of any
         event that with the giving of notice or lapse of time, or both, would
         become a Servicer Default under Section 8.01. The Seller shall deliver
         to the Owner Trustee, the Indenture Trustee and to each such Rating
         Agency, promptly after having obtained knowledge thereof, but in no
         event later than five Business Days thereafter, written notice in an
         Officer's Certificate of any event that with the giving of notice or
         lapse of time, or both, would become a Servicer Default under Section
         8.01(a)(ii) or would result in any lowering of the ratings described in
         Section 5.02(a)(ii)(A).

         SECTION 4.10 Annual Independent Certified Public Accountants' Report.
The Servicer shall cause a firm of independent certified public accountants, who
may also render other services to the Servicer, the Seller or their Affiliates,
to deliver to the Owner Trustee, the Indenture Trustee and each of the Rating
Agencies, on or before the last day of the third month after the end of each
fiscal year of the Servicer, beginning June 30, 2004, with respect to the prior
fiscal year (or with respect to the initial reports, the period from the date of
the initial issuance of the Securities to March 31, 2004) the following reports:
(a) a report that such firm has audited the consolidated financial statements of
the Servicer in accordance with generally accepted auditing standards, that such
firm is independent of the Servicer within the meaning of the Code of
Professional Ethics of the American Institute of Certified Public Accountants
("AICPA"), and expressing such firm's opinion thereon; and (b) a report
indicating that such firm has examined, in accordance with standards established
by AICPA, management's assertion about the Servicer's compliance with the
minimum servicing standards identified in the Mortgage Bankers Association of
America's Uniform Single Attestation Program for Mortgage Bankers ("USAP") as
such standards relate to automobile and light-duty truck loans serviced for
others, and expressing such firm's opinion on such management assertion (the
"Annual USAP Report") or any similar internal control audit report that is
acceptable to each Rating Agency. Upon the request of any Certificateholder or
Note Owner, the Owner Trustee or the Indenture Trustee, as the case may be,
shall promptly provide such Certificateholder or Note Owner with a copy of such
Annual USAP Report. For all purposes of this Agreement, the Owner Trustee and
the Indenture Trustee may rely on the representation of any Person that it is a
Certificateholder or a Note Owner, as the case may be.

         SECTION 4.11 Access to Certain Documentation and Information Regarding
Receivables.

                  (a)      The Servicer shall provide to the Owner Trustee and
         the Indenture Trustee access to the Receivable Files in such cases
         where the Securityholders shall be required by applicable statutes or
         regulations to review such documentation. In each case, such access
         shall be afforded without charge, but only upon reasonable request and
         during the normal business hours at the respective offices of the
         Servicer.

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<PAGE>

                  (b)      The Servicer shall provide to each Rating Agency any
         information regarding the Receivables that is reasonably requested by
         such Rating Agency.

                  (c)      Nothing in this Section shall affect the obligation
         of the Servicer to observe any applicable law prohibiting disclosure of
         information regarding the Obligors and the failure of the Servicer to
         provide access to information as a result of such obligation shall not
         constitute a breach of this Section.

         SECTION 4.12 Appointment of Subservicer. So long as NMAC acts as the
Servicer, the Servicer may at any time without notice or consent subcontract
substantially all its duties under this Agreement to any corporation more than
50% of the voting stock of which is owned, directly or indirectly, by Nissan.
The Servicer may at any time perform specific duties as servicer under this
Agreement through other subcontractors; provided, however, that no such
delegation or subcontracting shall relieve the Servicer of its responsibilities
with respect to such duties as to which the Servicer shall remain primarily
responsible with respect thereto.

         SECTION 4.13 Amendments to Schedule of Receivables. If the Servicer,
during any Collection Period, assigns to a Receivable an account number that
differs from the original account number identifying such Receivable on the
Schedule of Receivables, the Servicer shall deliver to the Owner Trustee and the
Indenture Trustee, on or before the Distribution Date relating to such
Collection Period, an amendment to the Schedule of Receivables reporting the
newly assigned account number, together with the old account number of each such
Receivable. The first such delivery of amendments to the Schedule of Receivables
shall include monthly amendments reporting account numbers appearing on the
Schedule of Receivables with the new account numbers assigned to such
Receivables during any prior Collection Period.

         SECTION 4.14 Acknowledgement by Servicer of its Obligations under the
Indenture. The Servicer hereby agrees and consents to the provisions of the
Indenture applicable to it (including, without limitation, Sections 8.03(a) and
8.03(b) thereof) and agrees to be bound by such provisions.

                                   ARTICLE V

                            Distributions; Accounts;
            Statements to the Certificateholders and the Noteholders

         SECTION 5.01 Establishment of Accounts.

                  (a)      The Servicer, on behalf of the Owner Trustee and the
         Indenture Trustee, shall establish the Collection Account in the name
         of the Indenture Trustee for the benefit of the Securityholders. The
         Collection Account shall be a segregated trust account initially
         established with the Indenture Trustee and maintained with the
         Indenture Trustee as long as (i) the deposits of the Indenture Trustee
         have the Required Deposit Rating or (ii) the Collection Account is
         maintained in a segregated trust account in the trust department of the
         Indenture Trustee; provided, however, that all amounts held in the
         Collection Account shall, to the extent permitted by applicable laws,
         rules and regulations and as directed by the Servicer, be invested by
         the Indenture Trustee in Eligible Investments; otherwise, such amounts
         shall be maintained in cash; provided that if (x) the

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<PAGE>

         Servicer shall have failed to give investment directions for any funds
         on deposit in the Collection Account to the Indenture Trustee by 5:00
         p.m. Eastern Time (or such other time as may be agreed by the Servicer
         and the Indenture Trustee) on any Business Day, or (y) a Default or
         Event of Default shall have occurred and be continuing with respect to
         the Notes but the Notes shall not have been declared due and payable
         pursuant to the Indenture, or (z) if the Notes shall have been declared
         due and payable following an Event of Default, amounts collected or
         receivable from the Trust Estate are being applied in accordance with
         Section 5.05 of the Indenture as if there had not been such a
         declaration, then the Indenture Trustee shall, to the fullest extent
         practicable, invest and reinvest funds in the Collection Account in one
         or more Eligible Investments specified in clauses (i), (iv) or (vi) of
         the definition of Eligible Investments. All such Eligible Investments
         shall mature not later than the Business Day preceding the next
         Distribution Date, in such manner that such amounts invested shall be
         available to make the required distributions on the Distribution Date.
         The Servicer will not direct the Indenture Trustee, and the Issuer
         shall cause the Servicer not to make any investment of any funds or to
         sell any investment held in the Collection Account unless the security
         interest granted and perfected in such account will continue to be
         perfected in such investment or the proceeds of such sale, in either
         case without any further action by any Person, and, in connection with
         any direction to the Indenture Trustee to make any such investment or
         sale, if requested by the Indenture Trustee, the Servicer shall deliver
         to the Indenture Trustee an Opinion of Counsel, acceptable to the
         Indenture Trustee, to such effect. Should the short-term unsecured debt
         obligations of the Indenture Trustee no longer have the Required
         Deposit Rating then, unless the Collection Account is maintained in
         segregated trust accounts in the trust department of the Indenture
         Trustee, the Servicer shall, with the Indenture Trustee's assistance as
         necessary and within ten Business Days of receipt of notice from the
         Indenture Trustee that the Indenture Trustee no longer has the Required
         Deposit Rating, cause the Collection Account (i) to be moved to
         segregated trust accounts in a bank or trust company, the short-term
         unsecured debt obligations of which shall have the Required Deposit
         Rating, or (ii) to be moved to the trust department of the Indenture
         Trustee.

                  (b)      Earnings on investment of funds in the Collection
         Account shall be paid to the Servicer as servicing compensation, and
         any losses and investment expenses shall be charged against the funds
         on deposit in the Collection Account.

                  (c)      Subject to the foregoing, the Servicer, on behalf of
         the Owner Trustee and the Indenture Trustee, shall establish and
         maintain the Collection Account as an Eligible Deposit Account in the
         name of and under the exclusive control of the Indenture Trustee,
         bearing a designation clearly indicating that the funds deposited
         therein are held for the benefit of the Securityholders. The Indenture
         Trustee shall transfer all amounts remaining on deposit in the
         Collection Account on the Distribution Date on which the Notes of all
         Classes have been paid in full (or substantially all of the Trust
         Estate is otherwise released from the lien of the Indenture) to another
         Eligible Deposit Account established pursuant to the Trust Agreement
         for the benefit of the Certificateholders (the "Trust Collection
         Account"), and take all necessary or appropriate actions to transfer
         all of its right, title and interest in the Collection Account, all
         funds or investments held therein and all proceeds thereof, whether or
         not on behalf of the Securityholders, to the

                                       35

<PAGE>

         Owner Trustee for the benefit of the Certificateholders, subject to the
         limitations set forth in the Indenture with respect to amounts held for
         payment to Noteholders that do not promptly deliver a Note for payment
         on such Distribution Date. After the transfer to the Trust Collection
         Account described in the immediately preceding sentence, references in
         this Agreement to "Collection Account" shall be deemed to be references
         to the "Trust Collection Account."

                  (d)      With respect to the Collection Account and all
         property held therein, the Owner Trustee agrees, by its acceptance
         hereof that, on the terms and conditions set forth in the Indenture,
         for so long as Notes of any Class remain outstanding, the Indenture
         Trustee shall possess all right, title and interest therein (excluding
         interest or investment income thereon payable to the Servicer or the
         Seller, as the case may be), and the Accounts shall be under the sole
         dominion and control of the Indenture Trustee for the benefit of the
         Noteholders and the Certificateholders, as the case may be, as set
         forth in the Indenture. The parties hereto agree that the Issuer, the
         Owner Trustee and the Holders of the Certificates have no right, title
         or interest in the Reserve Account or any amounts on deposit therein at
         any time. The parties hereto agree that the Servicer shall have the
         power, revocable by the Indenture Trustee or by the Owner Trustee with
         the consent of the Indenture Trustee, to instruct the Indenture Trustee
         to make withdrawals and payments from the Collection Account for the
         purpose of permitting the Servicer, Indenture Trustee or the Owner
         Trustee to carry out its respective duties hereunder or under the
         Indenture or the Trust Agreement, as the case may be.

                  Notwithstanding the foregoing, the Servicer shall be entitled
to withhold, or to be reimbursed from amounts otherwise payable into or on
deposit in the Collection Account, as the case may be, amounts previously
deposited in the Collection Account but later determined to have resulted from
mistaken deposits or posting.

         SECTION 5.02 Collections.

                  (a)      Except as otherwise provided in this Agreement, the
         Servicer shall remit daily to the Collection Account all payments
         received by or on behalf of the Obligors on or in respect of the
         Receivables (excluding payments on the Warranty Receivables or the
         Administrative Receivables) and all Net Liquidation Proceeds not later
         than the first Business Day after receipt thereof. For purposes of this
         Article V, the phrase "payments received by or on behalf of the
         Obligors" shall mean payments made by Persons other than the Servicer.
         Notwithstanding the foregoing, for so long as (i) NMAC is the Servicer,
         (ii) (A) NMAC's short-term unsecured debt obligations are rated at
         least "P-1" by Moody's and NMAC's short-term unsecured debt obligations
         (or, if NMAC is the Servicer and the Servicer then has no short-term
         rating from Standard & Poor's, Nissan Capital of America, Inc.'s
         short-term unsecured debt obligations) are rated "A-1" by Standard &
         Poor's (so long as Moody's and Standard & Poor's are Rating Agencies),
         or (B) certain arrangements are made that are acceptable to the Rating
         Agencies, and (iii) no Event of Default or Servicer Default shall have
         occurred and be continuing (unless waived by the appropriate
         Securityholders) (collectively, the "Monthly Remittance Conditions");
         the Servicer shall not be required to remit such collections to the
         Collection Account on the foregoing daily basis but shall be entitled
         to retain such collections,

                                       36

<PAGE>

         without segregation from its other funds, until the Business Day before
         each Distribution Date at which time the Servicer shall remit all such
         collections in respect of the related Collection Period to the
         Collection Account in immediately available funds. Commencing with the
         first day of the first Collection Period that begins at least two
         Business Days after the day on which any Monthly Remittance Condition
         ceases to be satisfied and for so long as any Monthly Remittance
         Condition is not satisfied, all collections then held by the Servicer
         shall be immediately deposited into the Collection Account and all
         future collections on or in respect of the Receivables (other than
         payments on Warranty Receivables and the Administrative Receivables)
         and all Net Liquidation Proceeds shall be remitted by the Servicer to
         the Collection Account on a daily basis not later than the first
         Business Day after receipt thereof.

                  (b)      The Indenture Trustee or the Owner Trustee shall not
         be deemed to have knowledge of any event or circumstances under clause
         (iii) of the definition of the Monthly Remittance Condition unless the
         Indenture Trustee or the Owner Trustee has received notice of such
         event or circumstance from the Seller or the Servicer in an Officer's
         Certificate or from the Holders of Notes evidencing not less than 25%
         in principal amount of the Outstanding Amount of the Notes, or a Trust
         Officer of the Indenture Trustee or the Owner Trustee with knowledge
         hereof or familiarity herewith has actual knowledge of such event or
         circumstances.

                  (c)      The Servicer shall give the Owner Trustee, the
         Indenture Trustee and each Rating Agency written notice of the failure
         of any Monthly Remittance Condition (and any subsequent curing of a
         failed Monthly Remittance Condition) as soon as practical after the
         occurrence thereof but in no event later than 10 Business Days after
         obtaining knowledge thereof (it being understood that if the Monthly
         Remittance Condition is not satisfied as of the Closing Date, no such
         notice shall be required in connection therewith).

                  (d)      Notwithstanding the foregoing, if a Monthly
         Remittance Condition is not satisfied, the Servicer may utilize an
         alternative remittance schedule (which may include the remittance
         schedule utilized by the Servicer before the Monthly Remittance
         Condition became unsatisfied), if the Servicer provides to the Owner
         Trustee and the Indenture Trustee written confirmation from each Rating
         Agency that such alternative remittance schedule will not result in the
         downgrading or withdrawal by such Rating Agency of the ratings then
         assigned to any Class of Notes.

         SECTION 5.03 Application of Collections. As of the Business Day
immediately preceding the related Distribution Date, all collections for the
related Collection Period with respect to each Receivable shall be applied by
the Servicer as follows:

                  (a)      First, to interest accrued to date on such
         Receivable;

                  (b)      Second, to principal until the Principal Balance of
         such Receivable is brought current;

                  (c)      Third, to reduce the unpaid late charges (if any) as
         provided in such Receivable; and

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<PAGE>

                  (d)      Fourth, to prepay principal on such Receivable.

         SECTION 5.04 Advances.

                  (a)      The Servicer shall make a payment with respect to
         each Receivable (other than an Administrative Receivable, a Warranty
         Receivable or a Liquidated Receivable) (each, an "Advance") equal to
         the excess if any, of (x) the product of the Principal Balance of such
         Receivable as of the first day of the related Collection Period and
         one-twelfth of its APR (calculated on the basis of a 360-day year
         comprised of twelve 30-day months), over (y) the interest actually
         received by the Servicer with respect to such Receivable from the
         Obligor or from payments of the Administrative Purchase Payment or the
         Warranty Purchase Payment, as the case may be, during such Collection
         Period. The Servicer will not be obligated to make an Advance in
         respect of a Receivable (other than an Advance in respect of an
         interest shortfall arising from the Prepayment of a Receivable) to the
         extent that the Servicer, in its sole discretion, shall determine that
         the Advance constitutes a Nonrecoverable Advance. With respect to each
         Receivable, the Advance shall increase the Outstanding Advances. No
         Advances will be made with respect to the Principal Balance of the
         Receivables. The Servicer shall deposit all such Advances into the
         Collection Account in immediately available funds no later than 5:00
         p.m., New York City time, on the Business Day immediately preceding the
         related Distribution Date. To the extent that the amount set forth in
         clause (y) above with respect to a Receivable is greater than the
         amount set forth in clause (x) above with respect thereto, such amount
         shall be distributed to the Servicer pursuant to Section 5.06;
         provided, however, that, notwithstanding anything else herein, the
         Servicer shall not be reimbursed for any amounts representing an
         Advance, or any portion thereof, made in respect of an interest
         shortfall arising from the Prepayment of a Receivable.

                  (b)      The Servicer shall be entitled to reimbursement for
         Outstanding Advances, without interest, with respect to a Receivable
         from the following sources with respect to such Receivable pursuant to
         Section 5.06(c)(i), Section 5.06(d)(i), or Section 5.06(e)(i): (i)
         subsequent payments made by or on behalf of the related Obligor, (ii)
         Net Liquidation Proceeds, and (iii) the Warranty Purchase Payments.

                  (c)      To the extent that the Servicer has determined that
         any Outstanding Advance is a Nonrecoverable Advance, the Servicer may
         provide to the Owner Trustee and the Indenture Trustee an Officer's
         Certificate setting forth the amount of such Nonrecoverable Advance,
         and on the related Distribution Date, the Relevant Trustee shall remit
         to the Servicer from funds on deposit in the Collection Account an
         amount equal to the amount of such Nonrecoverable Advance pursuant to
         Section 5.06(c)(ii), Section 5.06(d)(ii), or 5.06(e)(ii).

                  (d)      Notwithstanding anything to the contrary in this
         Agreement, for so long as NMAC is the Servicer, in lieu of causing the
         Servicer first to deposit and then the Relevant Trustee to remit to the
         Servicer the amounts described in clauses (i) through (iii) in Section
         5.04(b) reimbursable in respect on Outstanding Advances, or the amounts
         described in Section 5.04(c) applicable in respect of Nonrecoverable
         Advances, the

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<PAGE>

         Servicer may deduct such amounts from deposits otherwise to be made
         into the Collection Account.

                  (e)      Notwithstanding the provisions of Section 5.04(a), no
         Successor Servicer, including the Indenture Trustee, shall be obligated
         to make Advances unless it has expressly agreed to do so in writing.

         SECTION 5.05 Additional Deposits.

                  (a)      The following additional deposits shall be made to
         the Collection Account: (i) the Seller shall remit the aggregate
         Warranty Purchase Payments with respect to Warranty Receivables
         pursuant to Section 3.02; (ii) the Servicer shall remit (A) the
         aggregate Advances pursuant to Section 5.04(a), (B) the aggregate
         Administrative Purchase Payments with respect to Administrative
         Receivables pursuant to Section 4.06, and (C) the cash amount required
         upon any optional purchase of the Receivables by the Servicer, or any
         Successor Servicer, pursuant to Section 9.01; and (iii) the Indenture
         Trustee shall transfer (A) the Yield Supplement Deposit from the Yield
         Supplement Account to the Collection Account pursuant to Section 5.08,
         plus reinvestment income on the Yield Supplement Account (in assuring
         the availability therein of the related Available Interest), plus
         amounts described in the second sentence of Section 5.08(b) and (B) the
         amounts described in Sections 5.06 and 5.07 from the Reserve Account to
         the Collection Account pursuant to Section 5.07.

                  (b)      All deposits required to be made pursuant to this
         Section 5.05 by the Seller or the Servicer, as the case may be, may be
         made in the form of a single deposit and shall be made in immediately
         available funds, no later than 5:00 P.M., New York City time, on the
         Business Day immediately preceding the related Distribution Date. At
         the direction of the Servicer, the Relevant Trustee shall invest such
         amounts in Eligible Investments maturing not later than 12:00 P.M. New
         York City Time, on the related Distribution Date.

         SECTION 5.06 Payments and Distributions.

                  (a)      The rights of the Certificateholders to receive
         distributions in respect of the Certificates shall be and hereby are
         subordinated to the rights of the Noteholders to receive distributions
         in respect of the Notes to the extent provided in this Section 5.06.

                  (b)      On each Determination Date, the Servicer shall
         calculate the Available Interest, the Available Principal, the Yield
         Supplement Deposit, the Noteholders' Principal Distributable Amount,
         the Certificateholders' Principal Distributable Amount, the amount to
         be distributed to Noteholders of each Class and to Certificateholders
         pursuant to Section 5.06(c), (d) or (e), and all other distributions,
         deposits and withdrawals to be made on the related Distribution Date.

                  (c)      Subject to Sections 5.06(d) and (e), on each
         Distribution Date, the Relevant Trustee shall make the following
         payments and distributions from the Collection Account (after payment
         of the Supplemental Servicing Fee to the extent not previously retained
         by the Servicer) in the following order of priority and in the amounts

                                       39

<PAGE>

         set forth in the Servicer's Certificate for such Distribution Date;
         provided, however, that such payments and distributions shall be made
         only from those funds deposited in the Collection Account for the
         related Collection Period:

                           (i)      to the Servicer, from amounts on deposit in
         the Collection Account, any payments in respect of Advances required to
         be reimbursed and to the extent set forth in Section 5.04(b);

                           (ii)     to the Servicer, from amounts on deposit in
         the Collection Account, any payments in respect of Nonrecoverable
         Advances required to be reimbursed and to the extent set forth in
         Section 5.04(c);

                           (iii)    to the Servicer, from Available Amounts, the
         Base Servicing Fee (including any unpaid Base Servicing Fees from one
         or more prior Collection Periods);

                           (iv)     on a pro rata basis (based on the amounts
         distributable pursuant to this clause to each such Class), to the Class
         A-1 Noteholders, the Noteholders' Interest Distributable Amount for
         such Class, to the Class A-2 Noteholders, the Noteholders' Interest
         Distributable Amount for such Class, to the Class A-3 Noteholders, the
         Noteholders' Interest Distributable Amount for such Class, to the Class
         A-4 Noteholders, the Noteholders' Interest Distributable Amount for
         such Class, and to the Class A-5 Noteholders, the Noteholders' Interest
         Distributable Amount for such Class; such amounts to be paid from
         Available Amounts (after giving effect to any reduction in Available
         Amounts described in clause (iii) above);

                           (v)      to the Class A-1 Noteholders until the
         principal amount thereof is reduced to zero, an amount equal to the
         Noteholders' Principal Distributable Amount for such Distribution Date,
         such amounts to be paid from Available Amounts (after giving effect to
         any reduction in Available Amounts described in clauses (iii) and (iv)
         above);

                           (vi)     after the principal amount of the Class A-1
         Notes is reduced to zero, to the Class A-2 Noteholders until the
         principal amount of the Class A-2 Notes is reduced to zero, then to the
         Class A-3 Noteholders until the principal amount of the Class A-3 Notes
         is reduced to zero, then to the Class A-4 Noteholders until the
         principal amount of the Class A-4 Notes is reduced to zero, and then to
         the Class A-5 Noteholders until the principal amount of the Class A-5
         Notes is reduced to zero, an amount equal to the Noteholders' Principal
         Distributable Amount for such Distribution Date (after giving effect to
         any reduction in Noteholders' Principal Distributable Amount described
         in clause (v) above), such amounts to be paid from Available Amounts
         (after giving effect to any reduction in Available Amounts described in
         clauses (iii) through (v) above);

                           (vii)    to the Reserve Account, the amount, if any,
         necessary to cause the balance of funds therein to equal the Specified
         Reserve Account Balance with respect to such Distribution Date, such
         amounts to be paid from Available Amounts (after giving effect to any
         reduction in Available Amounts described in clauses (iii) through (vi)
         above);

                                       40

<PAGE>

                           (viii)   to the Certificateholders, or, to the extent
         amounts are payable to a Swap Counterparty pursuant to a Swap Agreement
         as described in Section 5.11, to such Swap Counterparty, except on any
         Distribution Date that occurs after the Class A Notes are accelerated,
         the Certificateholders' Principal Distributable Amount, such amounts to
         be paid from Available Amounts (after giving effect to any reduction in
         Available Amounts described in clauses (iii) through (vii) above); and

                           (ix)     any Available Amounts remaining after giving
         effect to the foregoing, to the Seller.

                  (d)      Notwithstanding the provisions of Section 5.06(c),
         after the occurrence of an Event of Default that results in the
         acceleration of any Notes and unless and until such acceleration has
         been rescinded, on each Distribution Date, the Relevant Trustee shall
         make the following payments and distributions from the Collection
         Account (after payment of the Supplemental Servicing Fee to the extent
         not previously retained by the Servicer) in the following order of
         priority and in the amounts set forth in the Servicer's Certificate for
         such Distribution Date; provided, however, that such payments and
         distributions shall be made only from those funds deposited in the
         Collection Account for the related Collection Period:

                           (i)      to the Servicer, from amounts on deposit in
         the Collection Account, any payments in respect of Advances required to
         be reimbursed and to the extent set forth in Section 5.04(b);

                           (ii)     to the Servicer, from amounts on deposit in
         the Collection Account, any payments in respect of Nonrecoverable
         Advances required to be reimbursed and to the extent set forth in
         Section 5.04(c);

                           (iii)    to the Servicer, from Available Amounts, the
         Base Servicing Fee (including any unpaid Base Servicing Fees from one
         or more prior Collection Periods);

                           (iv)     to the Class A-1 Noteholders, the
         Noteholders' Interest Distributable Amount for such Class (after giving
         effect to any reduction in Available Amounts described in clause (iii)
         above);

                           (v)      to the Class A-1 Noteholders, until the
         total amount paid to such Noteholders in respect of principal from the
         Closing Date is equal to the Original Principal Amount for such Class
         of Notes, such amounts to be paid from Available Amounts (after giving
         effect to any reduction in Available Amounts described in clauses (iii)
         through (iv) above);

                           (vi)     on the Distribution Date on which the Class
         A-1 Notes have been paid in full and on each Distribution Date
         thereafter, on a pro rata basis (based on the amounts distributable
         pursuant to this clause to each such Class), to the Class A-2
         Noteholders, the Noteholders' Interest Distributable Amount for such
         Class, to the Class A-3 Noteholders, the Noteholders' Interest
         Distributable Amount for such Class, to the Class A-4 Noteholders, the
         Noteholders' Interest Distributable Amount for such Class, and to the
         Class A-5 Noteholders, the Noteholders' Interest Distributable Amount
         for

                                       41

<PAGE>

         such Class; such amounts to be paid from Available Amounts (after
         giving effect to any reduction in Available Amounts described in
         clauses (iii) through (v) above);

                           (vii)    to the Class A-2 Noteholders, the Class A-3
         Noteholders, the Class A-4 Noteholders, and the Class A-5 Noteholders
         on a pro rata basis (based on the Outstanding Amount of each Class),
         until the total amount paid to such Noteholders in respect of principal
         from the Closing Date is equal to the Original Principal Amount for
         such Class of Notes, such amounts to be paid from Available Amounts
         (after giving effect to any reduction in Available Amounts described in
         clauses (iii) through (vi) above);

                           (viii)   on the Distribution Date on which the Notes
         have been paid in full and on each Distribution Date thereafter, to the
         Certificateholders, or, to the extent amounts are payable to a Swap
         Counterparty pursuant to a Swap Agreement as described in Section 5.11,
         to such Swap Counterparty, until the total amount paid to the
         Certificateholders in respect of principal from the Closing Date is
         equal to the Original Certificate Balance, such amount to be paid from
         Available Amounts (after giving effect to the reduction in Available
         Amounts described in clauses (iii) through (vii) above); and

                           (ix)     any Available Amounts remaining after giving
         effect to the foregoing, to the Seller.

                  (e)      Notwithstanding the provisions of Sections 5.06(c)
         and 5.06(d), after the occurrence of an Event of Default that results
         in the acceleration of any Notes, on or after the date on which such
         acceleration has been rescinded, on each Distribution Date, the
         Relevant Trustee shall make the following payments and distributions
         from the Collection Account (after payment of the Supplemental
         Servicing Fee to the extent not previously retained by the Servicer) in
         the following order of priority and in the amounts set forth in the
         Servicer's Certificate for such Distribution Date; provided, however,
         that such payments and distributions shall be made only from those
         funds deposited in the Collection Account for the related Collection
         Period:

                           (i)      to the Servicer, from amounts on deposit in
         the Collection Account, any payments in respect of Advances required to
         be reimbursed and to the extent set forth in Section 5.04(b);

                           (ii)     to the Servicer, from amounts on deposit in
         the Collection Account, any payments in respect of Nonrecoverable
         Advances required to be reimbursed and to the extent set forth in
         Section 5.04(c);

                           (iii)    to the Servicer, from Available Amounts, the
         Base Servicing Fee (including any unpaid Base Servicing Fees from one
         or more prior Collection Periods);

                           (iv)     on a pro rata basis (based on the amounts
         distributable pursuant to this clause to each such Class), to the Class
         A-1 Noteholders, the Noteholders' Interest Distributable Amount for
         such Class, to the Class A-2 Noteholders, the Noteholders' Interest
         Distributable Amount for such Class, to the Class A-3 Noteholders, the
         Noteholders' Interest Distributable Amount for such Class, to the Class
         A-4 Noteholders,

                                       42

<PAGE>

         the Noteholders' Interest Distributable Amount for such Class, and to
         the Class A-5 Noteholders, the Noteholders' Interest Distributable
         Amount for such Class; such amounts to be paid from Available Amounts
         (after giving effect to any reduction in Available Amounts described in
         clause (iii) above);

                           (v)      to the Class A-1 Noteholders, until the
         total amount paid to such Noteholders in respect of principal from the
         Closing Date is equal to the Original Principal Amount for the Class
         A-1 Notes, such amounts to be paid from Available Amounts (after giving
         effect to any reduction in Available Amounts described in clauses (iii)
         and (iv) above);

                           (vi)     to the Class A-2 Noteholders, until the
         total amount paid to such Noteholders in respect of principal from the
         Closing Date is equal to the Original Principal Amount for the Class
         A-2 Notes, such amounts to be paid from Available Amounts (after giving
         effect to any reduction in Available Amounts described in clauses (iii)
         through (v) above);

                           (vii)    to the Class A-3 Noteholders, until the
         total amount paid to such Noteholders in respect of principal from the
         Closing Date is equal to the Original Principal Amount for the Class
         A-3 Notes, such amounts to be paid from Available Amounts (after giving
         effect to any reduction in Available Amounts described in clauses (iii)
         through (vi) above);

                           (viii)   to the Class A-4 Noteholders, until the
         total amount paid to such Noteholders in respect of principal from the
         Closing Date is equal to the Original Principal Amount for the Class
         A-4 Notes, such amounts to be paid from Available Amounts (after giving
         effect to the reduction in Available Amounts described in clauses (iii)
         through (vii) above);

                           (ix)     to the Class A-5 Noteholders, until the
         total amount paid to such Noteholders in respect of principal from the
         Closing Date is equal to the Original Principal Amount for the Class
         A-5 Notes, such amounts to be paid from Available Amounts (after giving
         effect to the reduction in Available Amounts described in clauses (iii)
         through (viii) above);

                           (x)      on the Distribution Date on which the Notes
         have been paid in full and on each Distribution Date thereafter, to the
         Certificateholders, or, to the extent amounts are payable to a Swap
         Counterparty pursuant to a Swap Agreement as described in Section 5.11,
         to such Swap Counterparty, until the total amount paid to the
         Certificateholders in respect of principal from the Closing Date is
         equal to the Original Certificate Balance, such amount to be paid from
         Available Amounts (after giving effect to the reduction in Available
         Amounts described in clauses (iii) through (ix) above); and

                           (xi)     any Available Amounts remaining after giving
         effect to the foregoing, to the Seller.

                  (f)      For purposes of determining whether an Event of
         Default pursuant to Section 5.01(b) of the Indenture has occurred, the
         amount of principal required to be paid

                                       43
<PAGE>

         to the Holders of any Class of Notes on any Distribution Date is the
         amount available to be paid thereto pursuant to Section 5.06(c);
         provided, however, that (i) the Class A-1 Notes are required to be paid
         in full on or before the Final Scheduled Distribution Date for such
         Class, meaning that the Class A-1 Noteholders are entitled to have
         received on or before such date payments in respect of principal in an
         aggregate amount equal to the Original Principal Amount for such Class,
         together with all interest accrued thereon through such date; (ii) the
         Class A-2 Notes are required to be paid in full on or before the Final
         Scheduled Distribution Date for such Class, meaning that the Class A-2
         Noteholders are entitled to have received on or before such date
         payments in respect of principal in an aggregate amount equal to the
         Original Principal Amount for such Class, together with all interest
         accrued thereon through such date; (iii) the Class A-3 Notes are
         required to be paid in full on or before the Final Scheduled
         Distribution Date for such Class, meaning that the Class A-3
         Noteholders are entitled to have received on or before such date
         payments in respect of principal in an aggregate amount equal to the
         Original Principal Amount for such Class, together with all interest
         accrued thereon through such date; (iv) the Class A-4 Notes are
         required to be paid in full on or before the Final Scheduled
         Distribution Date for such Class, meaning that the Class A-4
         Noteholders are entitled to have received on or before such date
         payments in respect of principal in an aggregate amount equal to the
         Original Principal Amount for such Class, together with all interest
         accrued thereon through such date; and (v) the Class A-5 Notes are
         required to be paid in full on or before the Final Scheduled
         Distribution Date for such Class, meaning that the Class A-5
         Noteholders are entitled to have received on or before such date
         payments in respect of principal in an aggregate amount equal to the
         Original Principal Amount for such Class, together with all interest
         accrued thereon through such date.

                  (g)      Except with respect to the final payment upon
         retirement of a Note or Certificate, the Servicer shall on each
         Distribution Date instruct the Relevant Trustee to pay or distribute to
         each Securityholder of record on the related Record Date by check
         mailed to such Securityholder at the address of such Holder appearing
         in the Certificate Register or Note Register, as the case may be (or,
         if DTC, its nominee or a Clearing Agency is the relevant Holder, by
         wire transfer of immediately available funds or pursuant to other
         arrangements), the amount to be paid or distributed to such
         Securityholder pursuant to such Holder's Note or Certificate. With
         respect to the final payment upon retirement of a Note or Certificate,
         the Servicer shall on the relevant final Distribution Date instruct the
         Relevant Trustee to pay or distribute the amounts due thereon only upon
         delivery for cancellation of the certificate representing such Note or
         Certificate in accordance with the Indenture or the Trust Agreement, as
         the case may be.

         SECTION 5.07 Reserve Account.

                  (a)      In order to assure that certain amounts will be
         available to make required payments to Noteholders, the Seller will,
         pursuant to the Securities Account Control Agreement, establish and
         maintain with the Securities Intermediary a segregated trust account
         (the "Reserve Account") in the name of the Indenture Trustee which will
         include the money and other property deposited and held therein
         pursuant to Sections 5.06(c), 5.06(d), 5.06(e) and this Section 5.07.
         On or prior to the Closing Date, the Seller shall deposit an amount
         equal to the Reserve Account Initial Deposit into the Reserve Account.

                                       44
<PAGE>

         As, and to the extent, set forth in Section 5.06(c), the Relevant
         Trustee will deposit Available Amounts into the Reserve Account on each
         Distribution Date as provided in the Servicer's Certificate, until the
         amount on deposit therein equals the Specified Reserve Account Balance.
         On each Distribution Date, to the extent that amounts in the Collection
         Account and/or Available Amounts, as the case may be, are insufficient
         to fully fund the payments and distributions described in clauses (i)
         through (vi) of Section 5.06(c), clauses (i) through (vii) of Section
         5.06(d), or clauses (i) through (ix) of Section 5.06(e), the Relevant
         Trustee will withdraw amounts then on deposit in the Reserve Account,
         up to the amounts of any such deficiencies, and deposit such amounts
         into the Collection Account for application pursuant to such clauses.
         On each Distribution Date, as provided in the Servicer's Certificate,
         the Relevant Trustee will release to the Seller any amounts remaining
         on deposit in the Reserve Account in excess of the Specified Reserve
         Account Balance. Upon the payment in full of the Notes under the
         Indenture, as directed in writing by the Servicer, the Relevant Trustee
         will release to the Seller any amounts remaining on deposit in the
         Reserve Account, and all rights to the Reserve Account and all other
         collateral registered or held therein shall revert to the Seller in
         accordance with the Securities Account Control Agreement. Upon any such
         distribution to the Seller, the Issuer, Owner Trustee,
         Certificateholders, Indenture Trustee and Noteholders will have no
         further rights in, or claims to, such amounts.

                  (b)      All amounts held in the Reserve Account shall be
         invested by the Relevant Trustee, as directed in writing by the
         Servicer, in Eligible Investments; provided that if (x) the Servicer
         shall have failed to give investment directions for any funds on
         deposit in the Reserve Account to the Indenture Trustee by 5:00 p.m.
         Eastern Time (or such other time as may be agreed by the Servicer and
         the Indenture Trustee) on any Business Day, or (y) a Default or Event
         of Default shall have occurred and be continuing with respect to the
         Notes but the Notes shall not have been declared due and payable
         pursuant to the Indenture, or (z) the Notes shall have been declared
         due and payable following an Event of Default, but amounts collected or
         receivable from the Trust Estate are being applied pursuant to Section
         5.05 of the Indenture as if there had not been such a declaration, then
         the Indenture Trustee shall, to the fullest extent practicable, invest
         and reinvest funds in the Reserve Account in one or more Eligible
         Investments specified in clauses (i), (iv) or (vi) of the definition of
         Eligible Investments. All such Eligible Investments shall mature not
         later than the Business Day preceding the next Distribution Date, in
         such manner that such amounts invested shall be available to make the
         required deposits on the Distribution Date; provided that if permitted
         by the Rating Agencies, monies on deposit therein may be invested in
         Eligible Investments that mature later than the Business Day preceding
         the next Distribution Date. The Servicer will not direct the Relevant
         Trustee to make any investment of any funds or to sell any investment
         held in the Reserve Account unless the security interest granted and
         perfected in such account will continue to be perfected in such
         investment or the proceeds of such sale, in either case without any
         further action by any Person, and, in connection with any direction to
         the Relevant Trustee to make any such investment or sale, if requested
         by the Relevant Trustee, the Servicer shall deliver to the Relevant
         Trustee an Opinion of Counsel, acceptable to the Relevant Trustee, to
         such effect. Earnings, if any, on investment of funds in the Reserve
         Account shall be paid to the Seller, and losses and any investment
         expenses shall be charged against the funds on deposit therein. The
         Relevant Trustee shall incur no

                                       45
<PAGE>

         liability for the selection of investments or for losses thereon absent
         its own negligence or willful misfeasance. The Relevant Trustee shall
         have no liability in respect of losses incurred as a result of the
         liquidation of any investment prior to its stated maturity date or the
         failure of the Servicer to provide timely written investment
         directions.

                  (c)      Subject to the right of the Relevant Trustee to make
         withdrawals therefrom, as directed by the Servicer, for the purposes
         and in the amounts set forth in Section 5.06 and 5.07(a), the Reserve
         Account and all funds held therein shall be the property of the Seller
         and not the property of the Issuer, the Owner Trustee or the Indenture
         Trustee. The Issuer, the Owner Trustee, the Seller and the Indenture
         Trustee will treat the Reserve Account, all funds therein and all net
         investment income with respect thereto as assets of the Seller for
         federal income tax and all other purposes.

                  (d)      The Seller hereby grants to the Owner Trustee and the
         Indenture Trustee for the benefit of the Noteholders a security
         interest in the Reserve Account and all funds (including Eligible
         Investments) in the Reserve Account (including the Reserve Account
         Initial Deposit) and the proceeds thereof to secure the payment of
         interest on and principal of the Notes, and the Owner Trustee and the
         Indenture Trustee shall have all of the rights of a secured party under
         the UCC with respect thereto; provided that all income from the
         investment of funds in the Reserve Account, and the right to receive
         such income are retained by the Seller and are not transferred,
         assigned or otherwise conveyed hereunder. If for any reason the Reserve
         Account is no longer an Eligible Deposit Account, the Relevant Trustee
         shall promptly cause the Reserve Account to be moved to another
         institution or otherwise changed so that the Reserve Account becomes an
         Eligible Deposit Account.

                  (e)      Neither the Owner Trustee nor the Indenture Trustee
         shall enter into any subordination or intercreditor agreement with
         respect to the Reserve Account.

         SECTION 5.08 Yield Supplement Account.

                  (a)      In order to assure that sufficient amounts to make
         required distributions of interest to Noteholders will be available,
         the Owner Trustee will, pursuant to the Securities Account Control
         Agreement and the Yield Supplement Agreement, establish and maintain
         with the Securities Intermediary a segregated trust account (the "Yield
         Supplement Account") in the name of the Indenture Trustee which will
         include the money and other property deposited and held therein
         pursuant to the Yield Supplement Agreement and this Section 5.08.

                  (b)      On or prior to the Closing Date, the Seller shall
         make a capital contribution to the Trust by depositing an amount equal
         to the Initial Yield Supplement Amount into the Yield Supplement
         Account pursuant to the Yield Supplement Agreement. On each
         Distribution Date, to the extent amounts then on deposit in the Yield
         Supplement Account are sufficient therefor, the Relevant Trustee will
         withdraw amounts then on deposit in the Yield Supplement Account in an
         amount equal to the Yield Supplement Deposit with respect to such
         Distribution Date and deposit such amounts into the Collection Account
         for application pursuant to Section 5.06. On each

                                       46
<PAGE>

         Distribution Date, if the amount on deposit in the Yield Supplement
         Account (after giving effect to all deposits thereto or withdrawals
         therefrom on such Distribution Date) is greater than the Required Yield
         Supplement Amount, the Relevant Trustee will deposit such excess into
         the Collection Account for distribution by the Relevant Trustee in
         accordance with the terms of Section 5.06(c). Upon payment in full of
         the Notes under the Indenture, as directed in writing by the Servicer,
         the Indenture Trustee will release any amounts remaining on deposit in
         the Yield Supplement Account, and all rights to the Yield Supplement
         Account and all other collateral registered or held therein to the
         Seller.

                  (c)      All amounts held in the Yield Supplement Account
         shall be invested by the Relevant Trustee, as directed in writing by
         the Servicer, in Eligible Investments; provided that if (x) the
         Servicer shall have failed to give investment directions for any funds
         on deposit in the Yield Supplement Account to the Indenture Trustee by
         5:00 p.m. Eastern Time (or such other time as may be agreed by the
         Servicer and the Indenture Trustee) on any Business Day, or (y) a
         Default or Event of Default shall have occurred and be continuing with
         respect to the Notes but the Notes shall not have been declared due and
         payable pursuant to the Indenture, or (z) the Notes shall have been
         declared due and payable following an Event of Default, but amounts
         collected or receivable from the Trust Estate are being applied
         pursuant to Section 5.05 of the Indenture as if there had not been such
         a declaration, then the Indenture Trustee shall, to the fullest extent
         practicable, invest and reinvest funds in the Yield Supplement Account
         in one or more Eligible Investments specified in clauses (i), (iv) or
         (vi) of the definition of Eligible Investments. All such Eligible
         Investments shall mature not later than the Business Day preceding the
         next Distribution Date, in such manner that such amounts invested shall
         be available to make the required deposits on the Distribution Date;
         provided, that if permitted by the Rating Agencies, monies on deposit
         therein may be invested in Eligible Investments that mature later than
         the Business Day preceding the next Distribution Date. The Servicer
         will not direct the Relevant Trustee to make any investment of any
         funds or to sell any investment held in the Yield Supplement Account
         unless the security interest granted and perfected in such account will
         continue to be perfected in such investment or the proceeds of such
         sale, in either case without any further action by any Person, and, in
         connection with any direction to the Relevant Trustee to make any such
         investment or sale, if requested by the Relevant Trustee, the Servicer
         shall deliver to the Relevant Trustee an Opinion of Counsel, acceptable
         to the Relevant Trustee, to such effect. Earnings, if any, on
         investment of funds in the Yield Supplement Account shall be deposited
         in the Collection Account on each Distribution Date, and losses and any
         investment expenses shall be charged against the funds on deposit
         therein. The Relevant Trustee shall incur no liability for the
         selection of investments or for losses thereon absent its own
         negligence or willful misfeasance. The Relevant Trustee shall have no
         liability in respect of losses incurred as a result of the liquidation
         of any investment prior to its stated maturity date or the failure of
         the Servicer to provide timely written investment directions.

                  (d)      The Trust, the Owner Trustee, the Seller and the
         Indenture Trustee will treat the Yield Supplement Account, all funds
         therein and all net investment income with respect thereto as assets of
         the Trust for federal income tax and all other purposes.

                                       47
<PAGE>

                  (e)      Pursuant to the Yield Supplement Agreement and the
         Securities Account Control Agreement, the Trust will grant to the
         Indenture Trustee, for the benefit of the Noteholders, a security
         interest in all funds (including Eligible Investments) in the Yield
         Supplement Account (including the Initial Yield Supplement Amount) and
         the proceeds thereof to secure the payment of interest on the Notes,
         and the Indenture Trustee shall have all of the rights of a secured
         party under the UCC with respect thereto. If for any reason the Yield
         Supplement Account is no longer an Eligible Deposit Account, the
         Relevant Trustee shall promptly cause the Yield Supplement Account to
         be moved to another institution or otherwise changed so that the Yield
         Supplement Account becomes an Eligible Deposit Account.

                  (f)      Neither the Owner Trustee nor the Indenture Trustee
         shall enter into any subordination or intercreditor agreement with
         respect to the Yield Supplement Account.

         SECTION 5.09 Statements to Certificateholders and Noteholders.

                  (a)      On each Distribution Date, the Indenture Trustee
         shall include with each distribution to each Noteholder and the Owner
         Trustee shall include with each distribution to each Certificateholder
         a statement (which statement shall also be provided to each Rating
         Agency) based on information in the Servicer's Certificate furnished
         pursuant to Section 4.08, setting forth for the Collection Period
         relating to such Distribution Date the following information:

                           (i)      the amount of the payment allocable to the
                  principal amount of each Class of Notes and to the Certificate
                  Balance;

                           (ii)     the amount of the payment allocable to
                  interest on or with respect to each Class of Notes;

                           (iii)    the amount of the distribution allocable to
                  the Yield Supplement Deposit, if any, plus reinvestment
                  income, if any, on the Yield Supplement Account;

                           (iv)     the Pool Balance as of the close of business
                  on the last day of the related Collection Period;

                           (v)      the amount of the Base Servicing Fee paid to
                  the Servicer with respect to the related Collection Period,
                  the amount of any unpaid Base Servicing Fees and the change in
                  such amount from that of the prior Distribution Date;

                           (vi)     the Noteholders' Interest Carryover
                  Shortfall and the Noteholders' Principal Carryover Shortfall,
                  if any, with respect to each Class of Notes, and the change in
                  such amounts from the preceding Distribution Date;

                           (vii)    the Outstanding Amount, the Note Factor and
                  the Note Pool Factor with respect to each Class of Notes, and
                  the Certificate Balance, the Certificate Factor and the
                  Certificate Pool Factor with respect to the Certificates, in
                  each case

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<PAGE>

                  after giving effect to all payments in respect of principal on
                  such Distribution Date;

                           (viii)   the amount of Advances made in respect of
                  the Receivables during the related Collection Period and the
                  amount of unreimbursed Advances on such Distribution Date;

                           (ix)     the balance of the Reserve Account and the
                  Yield Supplement Account on such Distribution Date, after
                  giving effect to changes thereto on such Distribution Date and
                  the amount of such changes;

                           (x)      the amount of defaults and net losses on the
                  Receivables for the related Collection Period; and

                           (xi)     the number of delinquencies on the
                  Receivables as a percentage of the number of Receivables.

                  (b)      Copies of such statements may be obtained by the
         Certificateholders or the Note Owners from the Owner Trustee or the
         Indenture Trustee, as the case may be, by a request in writing. The
         Owner Trustee or the Indenture Trustee, as the case may be, shall
         provide such copies promptly after such requests.

         SECTION 5.10 Net Deposits. So long as NMAC is the Servicer, the
Servicer (in whatever capacity) may make the remittances pursuant to Sections
5.02 and 5.05 above net of amounts to be distributed to the Servicer (in
whatever capacity) pursuant to Section 5.06. Accounts between the Seller and the
Servicer will be adjusted accordingly. Nonetheless, the Servicer shall account
for all of the above described remittances and distributions (except for the
Supplemental Servicing Fee to the extent that the Servicer is entitled to retain
such amounts) in the Servicer's Certificate as if the amounts were deposited
and/or transferred separately.

         SECTION 5.11 Swap Agreement. Pursuant to the Trust Agreement, the
Issuer may, from time to time, as directed by the Certificateholders by means of
notice to the Administrator, enter into a currency Swap Agreement with a Swap
Counterparty to swap amounts payable to Certificateholders from U.S. dollars to
Japanese yen; provided, that (1) at the time the Issuer enters into the Swap
Agreement, the rating agencies have confirmed the then-existing ratings of the
Notes, and (2) any payments to the Swap Counterparty (including termination
payments) are payable only from amounts that are otherwise payable to the
Certificateholders. Any payments received by the Issuer from the Swap
Counterparty under such a Swap Agreement shall not be deposited in the
Collection Account and shall be paid by the Indenture Trustee directly to or to
the order of the Certificateholders on the related Distribution Date. In
connection with executing any such Swap Agreement, the Issuer, Indenture
Trustee, Owner Trustee, Seller and Servicer will enter into an amendment to this
Sale and Servicing Agreement, subject to Section 10.01 in a form approved by the
Certificateholders, that will specify the creation of any necessary accounts and
modifications of any provisions hereof to the extent necessary or appropriate to
effectuate the intention of such Swap Agreement.

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<PAGE>

                                   ARTICLE VI

                                   The Seller

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

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

                  (b)      Due Qualification. The Seller is duly qualified to do
         business as a foreign corporation in good standing, and has obtained
         all necessary licenses and approvals in all jurisdictions in which the
         ownership or lease of property or the conduct of its business shall
         require such qualifications and where the failure to so qualify would
         have a material adverse effect on the ability of the Seller to perform
         its obligations under this Agreement.

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

                  (d)      Valid Sale; Binding Obligations. This Agreement
         evidences a valid sale, transfer and assignment of the Receivables,
         enforceable against creditors of and purchasers from the Seller (other
         than a good faith purchaser for value in the ordinary course of
         business who takes actual possession of one or more Receivables); and
         this Agreement is a legal, valid and binding obligation of the Seller
         enforceable in accordance with its terms, subject to the effect of
         bankruptcy, insolvency, reorganization, moratorium or other similar
         laws affecting creditors' rights generally and by general equitable
         principles.

                  (e)      No Violation. The consummation of the transactions
         contemplated by this Agreement and the fulfillment of the terms hereof
         do not conflict with, result in any breach of any of the terms and
         provisions of, nor constitute (with or without notice or lapse of time)
         a default under, the certificate of incorporation or by-laws of the
         Seller, or any indenture, agreement or other instrument to which the
         Seller is a party or by which it shall be bound; nor result in the
         creation or imposition of any Lien upon any of its properties pursuant
         to the terms of any such indenture, agreement or other instrument

                                       50
<PAGE>

         (other than the Basic Documents); nor violate any law or, to the best
         of the Seller's knowledge, any order, rule or regulation applicable to
         the Seller of any court or of any federal or state regulatory body,
         administrative agency or other governmental instrumentality having
         jurisdiction over the Seller or its properties; which breach, default,
         conflict, Lien or violation in any case would have a material adverse
         effect on the ability of the Seller to perform its obligations under
         this Agreement.

                  (f)      No Proceedings. There are no proceedings or
         investigations pending, or, to the best of the Seller's knowledge,
         threatened, before any court, regulatory body, administrative agency or
         other governmental instrumentality having jurisdiction over the Seller
         or its properties: (i) asserting the invalidity of this Agreement, the
         Trust Agreement, the Indenture, the Securities Account Control
         Agreement, the Yield Supplement Agreement, the Certificates or the
         Notes; (ii) seeking to prevent the issuance of the Certificates or the
         Notes or the consummation of any of the transactions contemplated by
         this Agreement, the Trust Agreement, the Indenture, the Securities
         Account Control Agreement or the Yield Supplement Agreement; (iii)
         seeking any determination or ruling that would materially and adversely
         affect the performance by the Seller of its obligations under, or the
         validity or enforceability of, this Agreement, the Trust Agreement, the
         Indenture, the Securities Account Control Agreement, the Yield
         Supplement Agreement, the Certificates or the Notes; or (iv) relating
         to the Seller and that would adversely affect the federal or any state
         income tax attributes of the Issuer, the Certificates or the Notes.

         SECTION 6.02 Additional Covenants of the Seller.

                  (a)      The Seller agrees with the Certificateholders, the
         Note Owners and each Rating Agency that the Seller shall not issue any
         securities or deposit assets into a trust that issues any securities,
         the issuance of which could reasonably be expected to materially and
         adversely affect the rating of any Class of Notes unless it shall have
         first obtained the written consent of each Rating Agency to the effect
         that such issuance will not materially adversely affect such rating;
         provided that, the issuance of another series of certificates or notes
         pursuant to agreements with terms substantially similar to the terms of
         the Basic Documents shall not be deemed to materially and adversely
         affect the ratings on the Notes. The Seller shall provide a copy of any
         such consent to the Owner Trustee and the Indenture Trustee.

                  (b)      The Seller shall not do any of the following (without
         the prior written consent of each Rating Agency (other than Moody's)
         (which consent shall be to the effect that the acts set forth below
         shall not affect materially adversely the rating on any Class of Notes)
         and, upon the Seller's receipt of such written consent from each Rating
         Agency (other than Moody's), the Owner Trustee and the Indenture
         Trustee shall, without any exercise of its own discretion, also provide
         its written consent to the Seller (promptly after the occurrence of any
         of the following, the Seller shall provide notice of such occurrence to
         Moody's, so long as Moody's is then rating any outstanding Notes)):

                           (1)      engage in any business or activity other
                  than those set forth in Article Three of the Seller's
                  Certificate of Incorporation, as amended;

                                       51
<PAGE>

                           (2)      incur any indebtedness, or assume or
                  guaranty any indebtedness of any other entity, other than (A)
                  any indebtedness incurred in connection with the issuance of
                  any certificates or notes (as defined in the Seller's
                  Certificate of Incorporation), provided that any such future
                  indebtedness incurred in connection with the issuance of any
                  certificates or notes must be rated at least with the same
                  ratings given the outstanding certificates or notes secured or
                  supported by assets acquired by the Seller from NMAC by each
                  nationally recognized statistical rating organization that has
                  rated such outstanding certificates or notes or, prior to the
                  issuing of such future indebtedness incurred in connection
                  with such certificates or notes, the Seller shall have
                  received confirmation from each nationally recognized
                  statistical rating organization that has rated such
                  outstanding certificates or notes that the ratings of such
                  outstanding certificates or notes will not be adversely
                  affected by the issuance of such future indebtedness; and (B)
                  (i) any indebtedness to NMAC or any of its Affiliates incurred
                  in connection with the acquisition of receivables, which
                  indebtedness shall be fully subordinated (and which shall
                  provide for payment only after payment in respect of all
                  outstanding rated debt) and nonrecourse against any assets of
                  the Seller other than the assets pledged to secure such
                  indebtedness, (ii) such indebtedness does not constitute a
                  claim against the Seller in the event the assets pledged to
                  secure such indebtedness are insufficient to pay such
                  indebtedness, (iii) holders of such indebtedness agree that
                  they have no rights in any assets of the Seller other than the
                  assets pledged to secure such indebtedness, and (iv) to the
                  extent that any holder of such indebtedness is deemed to have
                  any interest in any assets of the Seller other than the assets
                  pledged to secure such indebtedness, holders of such
                  indebtedness agree that their interest is subordinate to
                  claims or rights of holders of other indebtedness issued by
                  the Seller, and that such agreement constitutes a
                  subordination agreement for purposes of Section 510(a) of the
                  Bankruptcy Code;

                           (3)      dissolve or liquidate, in whole or in part,
                  consolidate or merge with or into any other entity or convey
                  or transfer its properties and assets substantially as an
                  entirety to any entity, unless:

                                    (i)      the entity (if other than the
                  Seller) formed or surviving the consolidation or merger or
                  which acquires the properties and assets of the Seller is
                  organized and existing under the laws of the State of
                  Delaware, expressly assumes the due and punctual payment of
                  all obligations of the Seller, including those obligations of
                  the Seller under this Agreement and the Basic Documents, and
                  has a Certificate of Incorporation containing provisions
                  identical to the provisions of Article Three, Article Four and
                  Article Fifteen of the Seller's Certificate of Incorporation,
                  as amended;

                                    (ii)     immediately after giving effect to
                  the transaction, no default or event of default has occurred
                  and is continuing under any indebtedness of the Seller or any
                  agreements relating to such indebtedness;

                                    (iii)    the entity (if other than the
                  Seller) formed or surviving the consolidation or merger or
                  which acquires the properties and assets of the Seller

                                       52
<PAGE>

                  agrees that (i) it shall maintain its funds or assets as
                  identifiable and not commingle its funds or assets with those
                  of any direct or ultimate parent of such entity and pay from
                  its assets all obligations and indebtedness of any kind
                  incurred by it, (ii) it shall maintain bank accounts,
                  corporate records and books of account separate from those of
                  any direct or ultimate parent of such entity and (iii) the
                  business affairs of such entity will be managed by or under
                  the direction of its board of directors and it will conduct
                  its business from an office space separate from any direct or
                  ultimate parent of such entity; and

                                    (iv)     each nationally recognized
                  statistical rating organization that has rated any issue of
                  certificates or notes secured or supported by assets acquired
                  by the Seller from NMAC shall confirm in writing that the
                  rating of such certificates or notes shall not be adversely
                  affected by such consolidation or merger;

                           (4)      without the affirmative vote of 100% of the
                  members of the board of directors of the Seller, institute
                  proceedings to be adjudicated bankrupt or insolvent, or
                  consent to the institution of bankruptcy or insolvency
                  proceedings against it, or file a petition seeking or consent
                  to reorganization or relief under any applicable federal or
                  state law relating to bankruptcy, or consent to the
                  appointment of a receiver, liquidator, assignee, trustee,
                  sequestrator (or other similar official) of the corporation or
                  all or substantially all of its property, or make any
                  assignment for the benefit of creditors;

                           (5)      cease to have an "Independent Director," as
                  defined in the Seller's charter;

                           (6)      without the affirmative vote of at least one
                  "Independent Director," as defined in the Seller's charter,
                  enter into any transactions with the Servicer not in the
                  ordinary course of business; or

                           (7)      modify any provision of the "Restricted
                  Articles," as defined in the Seller's Certificate of
                  Incorporation, of the Seller's Certificate of Incorporation,
                  as amended, in any material respect.

         SECTION 6.03 Liability of Seller; Indemnities. The Seller shall be
liable in accordance herewith only to the extent of the obligations specifically
undertaken by the Seller under this Agreement.

                  (a)      The Seller shall indemnify, defend and hold harmless
         the Trust, the Owner Trustee, the Indenture Trustee from and against
         any taxes that may at any time be asserted against any such Person with
         respect to, as of the date hereof, the sale of the Receivables to the
         Trust or the issuance and original sale of the Notes and the
         Certificates, including any sales, gross receipts, general corporation,
         tangible personal property, privilege or license taxes (but, in the
         case of the Trust, not including any taxes asserted with respect to
         ownership of the Receivables or federal or other income taxes

                                       53
<PAGE>

         arising out of the transactions contemplated by this Agreement and the
         Basic Documents) and costs and expenses in defending against the same.

                  (b)      The Seller shall indemnify, defend and hold harmless
         the Owner Trustee and the Indenture Trustee, the Trust, the
         Certificateholders and the Noteholders from and against any loss,
         liability or expense incurred by reason of (i) the Seller's willful
         misfeasance, bad faith or negligence in the performance of its duties
         under this Agreement, or by reason of reckless disregard of its
         obligations and duties under this Agreement, and (ii) the Seller's or
         the Issuer's violation of federal or state securities laws in
         connection with the registration or the sale of the Certificates and
         the Notes.

                  Indemnification under this Section 6.03 shall survive the
termination of this Agreement and shall include reasonable fees and expenses of
counsel and expenses of litigation. If the Seller shall have made any indemnity
payment to any Person entitled thereto pursuant to this Section 6.03 and such
Person thereafter shall collect any of such amounts from others, such Person
shall promptly repay such amounts to the Seller, without interest (except to the
extent the recipient collects interest from others).

                  Promptly after receipt by a party indemnified under this
Section 6.03 (for purposes of this paragraph, an "Indemnified Party") of notice
of the commencement of any action, such Indemnified Party will, if a claim is to
be made in respect thereof against the Seller under this Section 6.03, notify
the Seller of the commencement thereof. If any such action is brought against
any Indemnified Party under this Section 6.03 and it notifies the Seller of the
commencement thereof, the Seller will assume the defense thereof, with counsel
reasonably satisfactory to such Indemnified Party (who may, unless there is, as
evidenced by an Opinion of Counsel to the Indemnified Party stating that there
is, a conflict of interest, be counsel to the Seller), and the Seller will not
be liable to such Indemnified Party under this Section 6.03 for any legal or
other expenses subsequently incurred by such Indemnified Party in connection
with the defense thereof, other than reasonable costs of investigation. The
obligations set forth in this Section 6.03 shall survive the termination of this
Agreement or the resignation or removal of the Owner Trustee or the Indenture
Trustee and shall include reasonable fees and expenses of counsel and expenses
of litigation. If the Seller shall have made any indemnity payments pursuant to
this Section 6.03 and the Person to or on behalf of whom such payments are made
thereafter collects any of such amounts from others, such Person shall promptly
repay such amounts to the Seller, without interest (except to the extent
received by such Person).

         SECTION 6.04 Merger or Consolidation of, or Assumption of the
Obligations of, Seller. Subject to Section 6.02, any Person (i) into which the
Seller may be merged or consolidated, (ii) resulting from any merger, conversion
or consolidation to which the Seller shall be a party, (iii) succeeding to the
business of the Seller or (iv) that is a corporation more than 50% of the voting
stock of which is owned directly or indirectly by Nissan, which Person in any of
the foregoing cases executes an agreement of assumption to perform every
obligation of the Seller under this Agreement, will be the successor to the
Seller under this Agreement without the execution or filing of any document or
any further act on the part of any of the parties to this Agreement; provided,
however, that (x) immediately after giving effect to such transaction, no
representation or warranty made pursuant to Section 6.01 shall have been
breached and no Servicer Default, and no event that, after notice or lapse of
time, or both, would become a

                                       54
<PAGE>

Servicer Default, shall have occurred and be continuing, (y) the Seller shall
have delivered to the Owner Trustee and the Indenture Trustee an Officer's
Certificate stating that such consolidation, merger or succession and such
agreement or assumption comply with this Section 6.04 and that all conditions
precedent, if any, provided for in this Agreement relating to such transaction
have been complied with and (z) the Seller shall have delivered to the Owner
Trustee and the Indenture Trustee an Opinion of Counsel either (A) stating that,
in the opinion of such counsel, based on customary qualifications and
assumptions, all financing statements and continuation statements and amendments
thereto have been executed and filed that are necessary fully to perfect the
interest of the Issuer and the Indenture Trustee, respectively, in the
Receivables, and reciting the details of such filings, or (B) stating that, in
the opinion of such counsel, no such action shall be necessary to preserve and
protect such interest. The Seller shall provide notice of any merger,
consolidation or succession pursuant to this Section 6.04 to each Rating Agency.
Notwithstanding anything herein to the contrary, the execution of the foregoing
agreement of assumption and compliance with clauses (x), (y) and (z) above shall
be conditions to the consummation of the transactions referred to in clauses
(i), (ii), (iii) or (iv) above.

         SECTION 6.05 Limitation on Liability of Seller and Others.

                  (a)      Neither the Seller nor any of the directors,
         officers, employees or agents of the Seller shall be under any
         liability to the Trust, the Certificateholders or the Noteholders,
         except as provided under this Agreement, for any action taken or for
         refraining from the taking of any action pursuant to this Agreement or
         for errors in judgment; provided, however, that this provision shall
         not protect the Seller or any such person against any liability that
         would otherwise be imposed by reason of willful misfeasance, bad faith
         or negligence in the performance of duties or by reason of reckless
         disregard of obligations and duties under this Agreement. The Seller
         and any director, officer, employee or agent of the Seller may rely in
         good faith on the advice of counsel or on any document of any kind,
         prima facie properly executed and submitted by any Person respecting
         any matters arising under this Agreement.

                  (b)      The Seller shall not be under any obligation to
         appear in, prosecute or defend any legal action that shall not be
         incidental to its obligations under this Agreement, and that in its
         opinion may cause it to incur any expense or liability; provided,
         however, that the Servicer may undertake any reasonable action that it
         may deem necessary or desirable in respect of this Agreement and the
         rights and duties of the parties to this Agreement and the interests of
         the Certificateholders and the Noteholders under this Agreement. In
         such event, the legal expenses and costs of such action and any
         liability resulting therefrom shall be expenses, costs and liabilities
         of the Servicer, and the Servicer will not be entitled to be reimbursed
         therefor.

         SECTION 6.06 Seller May Own Certificates or Notes. The Seller and any
Affiliate of the Seller may in its individual or any other capacity become the
owner or pledgee of Certificates or Notes with the same rights as it would have
if it were not the Seller or an Affiliate thereof, except as otherwise provided
in the Basic Documents. Certificates or Notes so owned by or pledged to the
Seller or such controlling or commonly controlled Person shall have an equal and
proportionate benefit under the provisions of this Agreement, without
preference, priority or

                                       55
<PAGE>

distinction as among all of the Certificates or the Notes, as the case may be,
except as otherwise expressly provided in the Basic Documents.

                                   ARTICLE VII

                                  The Servicer

         SECTION 7.01 Representations of Servicer. The Servicer makes the
following representations on which the Issuer is deemed to have relied in
acquiring the Receivables. The representations speak as of the execution and
delivery of this Agreement and as of the Closing Date and shall survive the sale
of the Receivables to the Issuer and the pledge thereof to the Indenture Trustee
pursuant to the Indenture.

                  (a)      Organization and Good Standing. The Servicer is duly
         organized and is validly existing as a corporation in good standing
         under the laws of the state of its incorporation, with corporate power
         and authority to own its properties and to conduct its business as such
         properties are currently owned and such business is presently
         conducted, and had at all relevant times, and has, corporate power,
         authority and legal right to acquire, own, sell and service the
         Receivables and to hold the Receivable Files as custodian on behalf of
         the Trust and the Indenture Trustee. The location of the Servicer's
         chief executive office and principal place of business is Torrance,
         California.

                  (b)      Due Qualification. The Servicer is duly qualified to
         do business as a foreign corporation in good standing, and has obtained
         all necessary licenses and approvals in all jurisdictions in which the
         ownership or lease of property or the conduct of its business relating
         to the servicing of the Receivables as required by this Agreement shall
         require such qualifications and where the failure to so qualify would
         have a material adverse effect on the ability of the Servicer to
         perform its obligations under this Agreement.

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

                  (d)      Binding Obligation. This Agreement constitutes a
         legal, valid and binding obligation of the Servicer enforceable in
         accordance with its terms, subject to the effect of bankruptcy,
         insolvency, reorganization, moratorium or other similar laws affecting
         creditors' rights generally and by general equitable principles.

                  (e)      No Violation. The consummation of the transactions
         contemplated by this Agreement and the fulfillment of the terms hereof
         do not conflict with, result in any breach of any of the terms and
         provisions of, nor constitute (with or without notice or lapse of time)
         a default under, the articles of incorporation or by-laws of the
         Servicer, or any indenture, agreement or other instrument to which the
         Servicer is a party or by which it shall be bound; nor result in the
         creation or imposition of any Lien upon any of its

                                       56
<PAGE>

         properties pursuant to the terms of any such indenture, agreement or
         other instrument (other than the Basic Documents); nor violate any law
         or any order, rule or regulation applicable to the Servicer of any
         court or of any federal or state regulatory body, administrative agency
         or other governmental instrumentality having jurisdiction over the
         Servicer or its properties; which breach, default, conflict, Lien or
         violation in any case would have a material adverse effect on the
         ability of the Seller to perform its obligations under this Agreement.

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

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

                  (a)      The Servicer shall defend, indemnify and hold
         harmless the Owner Trustee, the Indenture Trustee, the Trust, the
         Certificateholders and the Noteholders from and against any and all
         costs, expenses, losses, damages, claims and liabilities (collectively,
         "Damages") arising out of or resulting from the use, ownership or
         operation by the Servicer or any of its Affiliates (other than the
         Trust) of a Financed Vehicle.

                  (b)      The Servicer shall indemnify, defend and hold
         harmless the Owner Trustee, the Indenture Trustee, the Trust, the
         Certificateholders and the Noteholders from and against any and all
         Damages to the extent that such Damage arose out of, or was imposed
         upon, the Owner Trustee, the Indenture Trustee, the Trust, the
         Certificateholders or the Noteholders through the negligence, willful
         misfeasance or bad faith of the Servicer in the performance of its
         duties under this Agreement or by reason of reckless disregard of its
         obligations and duties under this Agreement.

                  (c)      The Servicer shall indemnify, defend and hold
         harmless the Owner Trustee and the Indenture Trustee from and against
         all Damages arising out of or incurred in connection with the
         acceptance or performance of the trusts and duties herein contained,
         except to the extent that such Damage: (i) shall be due to the willful
         misfeasance, bad faith, or negligence (except for errors in judgment)
         of the Owner Trustee or the Indenture Trustee, as the case may be; (ii)
         relates to any tax other than the taxes with respect to which the
         Seller shall be required to indemnify the Owner Trustee

                                       57
<PAGE>

         or the Indenture Trustee; (iii) shall arise from the breach by the
         Owner Trustee or the Indenture Trustee of any of their respective
         representations or warranties set forth in the Basic Documents; (iv)
         shall be one as to which the Seller is required to indemnify the Owner
         Trustee or the Indenture Trustee and as to which such Person has
         received payment of indemnity from the Seller; or (v) shall arise out
         of or be incurred in connection with the performance by the Indenture
         Trustee of the duties of Successor Servicer hereunder.

                  Promptly after receipt by a party indemnified under this
Section 7.02 (for purposes of this paragraph, an "Indemnified Party") of notice
of the commencement of any action, such Indemnified Party will, if a claim in
respect thereof is to be made against the Servicer under this Section 7.02,
notify the Servicer of the commencement thereof. If any such action is brought
against any Indemnified Party under this Section 7.02 and it notifies the
Servicer of the commencement thereof, the Servicer will assume the defense
thereof, with counsel reasonably satisfactory to such Indemnified Party (who
may, unless there is, as evidenced by an Opinion of Counsel to the Indemnified
Party stating that there is, a conflict of interest, be counsel to the
Servicer), and the Servicer will not be liable to such Indemnified Party under
this Section 7.02 for any legal or other expenses subsequently incurred by such
Indemnified Party in connection with the defense thereof, other than reasonable
costs of investigation. The obligations set forth in this Section 7.02 shall
survive the termination of this Agreement or the resignation or removal of the
Servicer, the Owner Trustee or the Indenture Trustee and shall include
reasonable fees and expenses of counsel and expenses of litigation. If the
Servicer shall have made any indemnity payments pursuant to this Section 7.02
and the Person to or on behalf of whom such payments are made thereafter
collects any of such amounts from others, such Person shall promptly repay such
amounts to the Servicer, without interest (except to the extent received by such
Person).

                  Indemnification under this Section 7.02 by NMAC (or any
successor thereto pursuant to Section 7.03) as Servicer, with respect to the
period such Person was the Servicer, shall survive the termination of such
Person as Servicer or a resignation by such Person as Servicer as well as the
termination of this Agreement and shall include reasonable fees and expenses of
counsel and expenses of litigation. If the Servicer shall have made any
indemnity payments pursuant to this Section 7.02 and the recipient thereafter
collects any of such amounts from others, the recipient shall promptly repay
such amounts to the Servicer, without interest (except to the extent the
recipient collects interest from others).

         SECTION 7.03 Merger or Consolidation of, or Assumption of the
Obligations of, Servicer. Any Person (i) into which the Servicer may be merged
or consolidated, (ii) resulting from any merger, conversion or consolidation to
which the Servicer shall be a party, (iii) succeeding to the business of the
Servicer, or (iv) so long as NMAC acts as Servicer, that is a corporation more
than 50% of the voting stock of which is owned directly or indirectly by Nissan,
which Person in any of the foregoing cases executes an agreement of assumption
to perform every obligation of the Servicer under this Agreement, will be the
successor to the Servicer under this Agreement without the execution or filing
of any paper or any further act on the part of any of the parties to this
Agreement; provided, however, that (x) immediately after giving effect to such
transaction, no Servicer Default, and no event which, after notice or lapse of
time, or both, would become a Servicer Default, shall have occurred and be
continuing, (y) the

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Servicer shall have delivered to the Owner Trustee and the Indenture Trustee an
Officer's Certificate stating that such consolidation, merger or succession and
such agreement of assumption comply with this Section 7.03 and that all
conditions precedent provided for in this Agreement relating to such transaction
have been complied with and (z) the Servicer shall have delivered to the Owner
Trustee and the Indenture Trustee an Opinion of Counsel either (A) stating that,
in the opinion of such counsel, based on customary qualifications and
assumptions, all financing statements and continuation statements and amendments
thereto have been executed and filed that are necessary fully to preserve and
protect the interest of the Issuer and the Indenture Trustee in the Receivables,
and reciting the details of such filings, or (B) stating that, in the opinion of
such counsel, no such action shall be necessary to perfect such interest. The
Servicer shall provide notice of any merger, consolidation or succession
pursuant to this Section 7.03 to each Rating Agency. Notwithstanding anything
herein to the contrary, the execution of the foregoing agreement of assumption
and compliance with clauses (x), (y) and (z) above shall be conditions to the
consummation of the transactions referred to in clauses (i), (ii), (iii) or (iv)
above.

         SECTION 7.04 Limitation on Liability of Servicer and Others.

                  (a)      Neither the Servicer nor any of the directors,
         officers, employees or agents of the Servicer shall be under any
         liability to the Trust, the Certificateholders or the Noteholders,
         except as provided under this Agreement, for any action taken or for
         refraining from the taking of any action pursuant to this Agreement or
         for errors in judgment; provided, however, that this provision shall
         not protect the Servicer or any such person against any liability that
         would otherwise be imposed by reason of willful misfeasance, bad faith
         or negligence in the performance of duties or by reason of reckless
         disregard of obligations and duties under this Agreement. The Servicer
         and any director, officer, employee or agent of the Servicer may rely
         in good faith on the advice of counsel or on any document of any kind,
         prima facie properly executed and submitted by any Person respecting
         any matters arising under this Agreement.

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

         SECTION 7.05 NMAC Not To Resign as Servicer. Subject to the provisions
of Section 7.03, NMAC shall not resign from the obligations and duties hereby
imposed on it as Servicer under this Agreement except upon determination that
the performance of its duties under this Agreement shall no longer be
permissible under applicable law. Notice of any such determination permitting
the resignation of NMAC shall be communicated to the Owner Trustee and the
Indenture Trustee at the earliest practicable time (and, if such communication
is not in

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writing, shall be confirmed in writing at the earliest practicable time), and
any such determination shall be evidenced by an Opinion of Counsel to such
effect delivered to the Owner Trustee and the Indenture Trustee concurrently
with or promptly after such notice. No such resignation shall become effective
until the Indenture Trustee or a Successor Servicer shall (i) have taken the
actions required by Section 8.01 of this Agreement to effect the termination of
the responsibilities and rights of the predecessor Servicer under this
Agreement, including the transfer to the Successor Servicer for administration
by it of all cash amounts that shall at the time be held by the predecessor
Servicer for deposit, or shall thereafter be received with respect to a
Receivable and the delivery of the Receivable Files, and the related accounts
and records maintained by the Servicer, (ii) have assumed the responsibilities
and obligations of NMAC as Servicer under this Agreement in accordance with
Section 8.02 of this Agreement (other than the initial Servicer's obligation to
make Advances), and (iii) become the Administrator under the Administration
Agreement in accordance with Section 8 of such Agreement.

                                  ARTICLE VIII

                                     Default

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

                  (a)      any failure by the Servicer (or the Seller, so long
         as NMAC is the Servicer) to deliver to the Relevant Trustee for deposit
         in any of the Accounts any required payment or to direct the Relevant
         Trustee to make any required distributions therefrom, which failure
         continues unremedied for a period of three Business Days after (i)
         receipt by the Servicer (or the Seller, so long as NMAC is the
         Servicer) of written notice of such failure given by the Owner Trustee
         or the Indenture Trustee, (ii) receipt by the Servicer (or the Seller,
         so long as NMAC is the Servicer), the Owner Trustee or the Indenture
         Trustee of written notice of such failure given by Holders of Notes
         evidencing not less than 25% of the Outstanding Amount, or (iii)
         discovery of such failure by any officer of the Servicer;

                  (b)      any failure by the Servicer (or the Seller, as long
         as NMAC is the Servicer) to duly observe or perform in any material
         respect any other covenants or agreements of the Servicer (or the
         Seller, as long as NMAC is the Servicer) set forth in this Agreement
         (including its obligation to purchase Receivables pursuant to Section
         4.06), which failure shall materially and adversely affect the rights
         of the Certificateholders or the Noteholders and shall continue
         unremedied for a period of 90 days after giving of written notice of
         the failure to (i) the Servicer (or the Seller, as long as NMAC is the
         Servicer) by the Owner Trustee or the Indenture Trustee, or (ii) the
         Servicer (or the Seller, as long as NMAC is the Servicer) and the Owner
         Trustee or the Indenture Trustee by Holders of Notes evidencing not
         less than 25% of the Outstanding Amount or Holders of Certificates
         evidencing not less than 25% of the Certificate Balance; or

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<PAGE>

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

then, and in each and every case, so long as the Servicer Default shall not have
been remedied, either the Indenture Trustee or the Holders of Notes evidencing a
majority of the Outstanding Amount of the Notes (but excluding for purposes of
such calculation and action all Notes held or beneficially owned by NMAC, NARC
II or any of their Affiliates unless all of the Notes are held or beneficially
owned by NMAC, NARC II or any of their Affiliates), acting together as a single
Class, by notice then given in writing to the Servicer (and to the Indenture
Trustee and the Owner Trustee if given by the Noteholders) may terminate all of
the rights and obligations (other than the obligations set forth in Section 7.02
hereof) of the Servicer under this Agreement. On or after the receipt by the
Servicer of such written notice, all authority and power of the Servicer under
this Agreement, whether with respect to the Notes, the Certificates or the
Receivables or otherwise, shall, without further action, pass to and be vested
in the Indenture Trustee or such Successor Servicer as may be appointed under
Section 8.02; and, without limitation, the Indenture Trustee and the Owner
Trustee are hereby authorized and empowered to execute and deliver, for the
benefit of the predecessor Servicer, as attorney-in-fact or otherwise, any and
all documents and other instruments, and to do or accomplish all other acts or
things necessary or appropriate to effect the purposes of such notice of
termination, whether to complete the transfer and endorsement of the Receivables
and related documents, or otherwise. The predecessor Servicer shall cooperate
with the Successor Servicer and the Owner Trustee in effecting the termination
of the responsibilities and rights of the predecessor Servicer under this
Agreement, including, without limitation, the transfer to the Successor Servicer
for administration by it of all cash amounts that shall at the time be held by
the predecessor Servicer for deposit, or have been deposited by the predecessor
Servicer, in the Accounts or thereafter received with respect to the Receivables
that shall at that time be held by the predecessor Servicer and the delivery of
the Receivable Files and the related accounts and records maintained by the
predecessor Servicer. All reasonable costs and expenses (including attorneys'
fees) incurred in connection with transferring the Receivable Files to the
Successor Servicer and amending this Agreement to reflect such succession as
Servicer pursuant to this Section 8.01 shall be paid by the predecessor Servicer
upon presentation of reasonable documentation of such costs and expenses.
Notwithstanding the foregoing, in the event the predecessor Servicer is the
Indenture Trustee, the original Servicer hereunder shall reimburse the Indenture
Trustee for all reasonable costs and expenses as described in the immediately
preceding sentence. Upon receipt of notice of the occurrence of a Servicer
Default, the Indenture Trustee shall give notice thereof to the Rating Agencies.

         SECTION 8.02 Appointment of Successor.

                  (a)      Upon the Servicer's receipt of notice of termination
         pursuant to Section 8.01 or the Servicer's resignation in accordance
         with the terms of this Agreement, the predecessor Servicer shall
         continue to perform its functions as Servicer under this Agreement, in
         the case of termination, only until the date specified in such
         termination notice or, if no such date is specified in a notice of
         termination, until receipt of such notice and, in the case of
         resignation, until the earlier of (i) the date 45 days from the
         delivery to the Owner Trustee and the Indenture Trustee of written
         notice of such resignation (or written confirmation of such notice) in
         accordance with the terms of this Agreement and (ii) the date upon
         which the predecessor Servicer shall become unable to

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<PAGE>

         act as Servicer, as specified in the notice of resignation and
         accompanying Opinion of Counsel. In the event of the Servicer's
         resignation or termination hereunder, the Indenture Trustee shall
         appoint a Successor Servicer, and the Successor Servicer shall accept
         its appointment (including its appointment as Administrator under the
         Administration Agreement as set forth in Section 8.02(b)) by a written
         assumption in form acceptable to the Owner Trustee and the Indenture
         Trustee. If a Successor Servicer has not been appointed at the time
         when the predecessor Servicer has ceased to act as Servicer in
         accordance with this Section 8.02, the Indenture Trustee without
         further action shall automatically be appointed the Successor Servicer
         and the Indenture Trustee shall be entitled to the Total Servicing Fee.
         Notwithstanding the above, the Indenture Trustee shall, if it shall be
         legally unable so to act, appoint or petition a court of competent
         jurisdiction to appoint, and the predecessor Servicer, if no successor
         Servicer has been appointed at the time the predecessor Servicer has
         ceased to act, may petition a court of competent jurisdiction to
         appoint any established institution having a net worth of not less than
         $100,000,000 and whose regular business shall include the servicing of
         automobile and/or light-duty truck receivables, as the successor to the
         Servicer under this Agreement.

                  (b)      Upon appointment, the Successor Servicer (including
         the Indenture Trustee acting as Successor Servicer) shall (i) be the
         successor in all respects to the predecessor Servicer and shall be
         subject to all the responsibilities, duties and liabilities arising
         thereafter relating thereto placed on the predecessor Servicer (except
         the initial Servicer's obligation to make Advances) and shall be
         entitled, subject to the arrangements referred to in paragraph (c)
         below, to the servicing fee and all the rights granted to the
         predecessor Servicer by the terms and provisions of this Agreement and
         (ii) become the Administrator under the Administration Agreement in
         accordance with Section 8 of such Agreement.

                  (c)      In connection with such appointment, the Issuer may
         make such arrangements for the compensation of such Successor Servicer
         out of payments on Receivables as it and such Successor Servicer shall
         agree; provided, however, that no such compensation shall be in excess
         of that permitted the predecessor Servicer under this Agreement. The
         Issuer, the Indenture Trustee and such Successor Servicer shall take
         such action, consistent with this Agreement, as shall be necessary to
         effectuate any such succession.

         SECTION 8.03 Repayment of Advances. If the Servicer shall resign or be
terminated, the Servicer shall continue to be entitled to receive, to the extent
of available funds, reimbursement for Outstanding Advances pursuant to Sections
5.03 and 5.04 with respect to all Advances previously made thereby.

         SECTION 8.04 Notification. Upon any termination of, or appointment of
a successor to, the Servicer pursuant to this Article VIII, the Owner Trustee
shall give prompt written notice thereof to the Certificateholders, and the
Indenture Trustee shall give prompt written notice thereof to Noteholders and
the Rating Agencies.

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         SECTION 8.05 Waiver of Past Defaults. The Holders of Notes evidencing a
majority of the Outstanding Amount of the Notes, or, in the case of any Servicer
Default which does not adversely affect the Indenture Trustee or the
Noteholders, the Holders of Certificates evidencing a majority of the
Certificate Balance, in each case excluding for purposes of such calculation and
action all Securities held or beneficially owned by NMAC, NARC II or any of
their Affiliates (unless all of the Notes or the Certificates, as the case may
be, are held by NMAC, NARC II and their Affiliates), may, on behalf of all the
Noteholders and the Certificateholders, waive in writing any default by the
Servicer in the performance of its obligations hereunder and its consequences,
except a default in making any required deposits to or payments from the
Collection Account in accordance with this Agreement. Upon any such waiver of a
past default, such default shall cease to exist, and any Servicer Default
arising therefrom shall be deemed to have been remedied for every purpose of
this Agreement. No such waiver shall extend to any subsequent or other default
or impair any right consequent thereto.

                                   ARTICLE IX

                       Termination; Release of Receivables

         SECTION 9.01 Optional Purchase of All Receivables.

                  (a)      On each Distribution Date following the last day of a
         Collection Period as of which the Pool Balance shall be less than or
         equal to the Optional Purchase Percentage multiplied by the Original
         Pool Balance, the Servicer or any successor to the Servicer shall have
         the option to purchase, or cause to be purchased, the corpus of the
         Owner Trust Estate (whether or not such assets then comprise all or a
         portion of the Trust Estate) for an amount equal to the Optional
         Purchase Price (the "Optional Purchase"). To exercise such option, the
         Servicer or any successor to the Servicer shall notify the Owner
         Trustee and the Indenture Trustee of its intention to do so in writing,
         no later than the tenth day of the month preceding the month in which
         the Distribution Date as of which such purchase is to be effected and
         shall, on or before the Distribution Date on which such purchase is to
         occur, deposit pursuant to Section 5.05 in the Collection Account an
         amount equal to the Optional Purchase Price (or the deposit in cash of
         such lesser amount as provided in Section 9.01(b)), and shall succeed
         to all interests in and to the Trust Estate and the Owner Trust Estate;
         provided, however, that the Servicer shall not effect any such purchase
         so long as the rating of NMAC by Moody's, or if NMAC shall then be
         unrated by Moody's, then the rating of Nissan Capital of America, Inc.,
         is less then "Ba1" by Moody's, unless the Owner Trustee and the
         Indenture Trustee shall have received an Opinion of Counsel to the
         effect that such purchase shall not constitute a fraudulent conveyance,
         subject to such assumptions as to factual matters as may be contained
         therein. Amounts so deposited will be paid and distributed as set forth
         in Section 5.06 of this Agreement. Upon such deposit of the amount
         necessary to purchase the corpus of the Owner Trust Estate, the
         Servicer shall for all purposes of this Agreement be deemed to have
         released all claims for reimbursement of Outstanding Advances made in
         respect of the Receivables.

                  (b)      The Servicer, at its option, may pay all or a portion
         of the Optional Purchase Price by issuing a demand note in favor of the
         Trust, the terms of which, on the

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         whole, shall be commercially reasonable and substantially similar to
         terms that would prevail in an arms-length negotiation between
         unaffiliated parties; provided, however, that (i) the Servicer shall
         pay in cash the portion of the Optional Purchase Price that is equal to
         or greater than the sum of (x) the Outstanding Amount of all Classes of
         Notes and (y) the Noteholders' Interest Distributable Amount for all
         Classes of Notes for such Distribution Date, and (ii) the Servicer may
         issue a demand note to a Certificateholder pursuant to this Section
         9.01 only if such Certificateholder consents to the receipt of such
         demand note.

                  (c)      Notice of any such purchase of the Owner Trust Estate
         shall be given by the Owner Trustee and the Indenture Trustee to each
         Securityholder as soon as practicable after their receipt of notice
         thereof from the Servicer.

                  (d)      Following the satisfaction and discharge of the
         Indenture and the payment in full of the principal of and interest on
         the Notes, the Certificateholders will succeed to the rights of the
         Noteholders hereunder other than under Section 5.06 and the Issuer will
         succeed to the rights of the Indenture Trustee provided for in this
         Agreement.

         SECTION 9.02 Release of Receivables.

                  (a)      Upon repurchase of any Receivable by the Seller
         pursuant to Section 3.02 or by the Servicer pursuant to Section 4.06 or
         Section 9.01, the Issuer and the Indenture Trustee on behalf of the
         Noteholders, shall, without further action, be deemed to transfer,
         assign, set-over and otherwise convey to the Seller or the Servicer, as
         the case may be, all right, title and interest of the Issuer in, to and
         under such repurchased Receivable, all monies due or to become due with
         respect thereto and all proceeds thereof and the other property
         conveyed to the Issuer hereunder pursuant to Section 2.01 with respect
         to such Receivable, and all security and any documents relating
         thereto, such assignment being an assignment outright and not for
         security; and the Seller or the Servicer, as applicable, shall
         thereupon own each such Receivable, and all such related security and
         documents, free of any further obligation to the Issuer, the Owner
         Trustee, the Certificateholders, the Indenture Trustee or the
         Noteholders with respect thereto.

                  (b)      The Issuer and Indenture Trustee shall execute such
         documents and instruments of transfer and assignment and take such
         other actions as shall be reasonably requested by the Seller or the
         Servicer, as the case may be, to effect the conveyance of such
         Receivable pursuant to Sections 3.02, 4.06 and 9.02.

                  If in any enforcement suit or legal proceeding it is held that
the Seller or the Servicer may not enforce a repurchased Receivable on the
ground that it is not a real party in interest or a holder entitled to enforce
the Receivable, the Issuer, and the Indenture Trustee on behalf of the
Noteholders, shall, at the written direction and expense of the Seller or
Servicer, as the case may be, take such reasonable steps as the Seller or the
Servicer deems necessary to enforce the Receivable, including bringing suit in
the name or names of the Issuer, the Certificateholders or the Noteholders.

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         SECTION 9.03 Termination.

                  (a)      The respective obligations of the Seller, the
         Servicer, NMAC (so long as NMAC has rights or obligations hereunder),
         the Owner Trustee, and the Indenture Trustee, as the case may be,
         pursuant to this Agreement shall terminate upon the earliest of (i) the
         maturity or other liquidation of the last Receivable and the final
         disposition of all amounts received upon liquidation of any remaining
         Receivables, or (ii) the election by the Servicer to purchase the
         corpus of the Trust as described in Section 9.01 and the payment or
         distribution to Securityholders of all amounts required to be paid to
         them under the Indenture or the Trust Agreement, as the case may be.

                  (b)      Notice of any such termination under this Section
         9.03 shall be given by the Indenture Trustee or the Owner Trustee to
         each Securityholder of record as specified in the Indenture or the
         Trust Agreement, as appropriate.

                                   ARTICLE X

                                  Miscellaneous

         SECTION 10.01 Amendment.

                  (a)      This Agreement may be amended by the Seller, the
         Servicer and the Issuer, with the consent of the Indenture Trustee, but
         without the consent of any of the Noteholders or the
         Certificateholders,

                           (1)      to cure any ambiguity, correct or supplement
                  any provision herein that may be inconsistent with any other
                  provision herein, or make any other provisions with respect to
                  matters or questions arising hereunder that are not
                  inconsistent with the provisions herein; provided that (i) the
                  amendment will not materially and adversely affect the
                  interest of any Noteholder or Certificateholder and (ii) the
                  Servicer shall have delivered an Officer's Certificate to the
                  Indenture Trustee and the Owner Trustee stating that such
                  amendment will not materially and adversely affect the
                  interest of any Noteholder or Certificateholder; and

                           (2)      to change the formula for determining the
                  required amount for the Specified Reserve Account Balance upon
                  (i) confirmation from each Rating Agency that such amendment
                  will not result in the qualification, reduction or withdrawal
                  of any rating it currently assigns to any Class of Notes, and
                  (ii) delivery by the Servicer to the Indenture Trustee and the
                  Owner Trustee of an Officer's Certificate stating that such
                  amendment will not materially and adversely affect the
                  interest of any Securityholder.

                  An amendment will be deemed not to materially and adversely
affect the interests of any Noteholder or Certificateholder of any Class if (x)
the amendment does not adversely affect the Trust's status as a partnership (or,
for any period during which there is not more than one beneficial owner of a
Certificate, the Trust's status as an entity that is disregarded as an entity
separate from the Certificateholder) for federal income tax purposes, (y) each
Rating Agency confirms that that amendment will not result in a reduction or
withdrawal of its rating on

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<PAGE>

the Notes of that Class, and (z) the Servicer has delivered the Officer's
Certificate described in this Section 10.01(a).

                  (b)      This Agreement may also be amended from time to time
         by the Seller, the Servicer and the Issuer, with the consent of the
         Indenture Trustee and the consent of:

                           (1)      the Holders of Notes evidencing a majority
                  of the Outstanding Amount of the Notes; or

                           (2)      in the case of any amendment that does not
                  adversely affect the Indenture Trustee or the Noteholders, the
                  Holders of the Certificates evidencing a majority of the
                  outstanding Certificate Balance (but excluding for purposes of
                  calculation and action all Certificates held by the Seller,
                  the Servicer or any of their Affiliates, unless all of the
                  Certificates are held by the Seller, the Servicer or any of
                  their Affiliates);

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 those Noteholders or Certificateholders; provided, however,
that no amendment shall:

                           (1)      increase or reduce in any manner the amount
                  of, or accelerate or delay the timing of, collections of
                  payments on the Receivables or distributions that are required
                  to be made for the benefit of those Noteholders or
                  Certificateholders or change the Interest Rate or the
                  Specified Reserve Account Balance (except as described above
                  under clause (2) of subsection (a) above) without the consent
                  of each "adversely affected" Noteholder or Certificateholder;
                  or

                           (2)      reduce the aforesaid percentage of the
                  Outstanding Amount of the Notes or Certificate Balance of the
                  Certificates which is required to consent to any amendment,
                  without the consent of the Holders of all the then outstanding
                  Notes or Certificates.

         An amendment referred to in clause (x) above will be deemed not to
"adversely affect" a Noteholder of any Class only if each Rating Agency confirms
that that amendment will not result in a reduction or withdrawal of its rating
on the Notes of that Class. In connection with any amendment referred to in
clause (x) above, the Servicer shall deliver an Officer's Certificate to the
Indenture Trustee and the Owner Trustee stating that those Noteholders and
Certificateholders whose consents were not obtained were not adversely affected
by such amendment.

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

         It shall not be necessary for the consent of the Certificateholders or
Noteholders pursuant to this Section 10.01 to approve the particular form of any
proposed amendment or consent, but it shall be sufficient if such consent shall
approve the substance thereof.

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<PAGE>

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

         SECTION 10.02 Protection of Title to Trust.

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

                  (b)      The Seller and the Servicer shall notify the Owner
         Trustee and the Indenture Trustee within 30 days after any change of
         its name, identity or corporate structure in any manner that would,
         could or might make any financing statement or continuation statement
         filed in accordance with paragraph (a) above seriously misleading
         within the meaning of Section 9-507(c) of the UCC, and shall promptly
         file appropriate amendments to all previously filed financing
         statements or continuation statements.

                  (c)      Each of the Seller and the Servicer shall notify the
         Owner Trustee and the Indenture Trustee of any relocation of its
         principal executive office or state of incorporation within 30 days
         after such relocation, if, as a result of such relocation, the
         applicable provisions of the UCC would require the filing of any
         amendment of any previously filed financing or continuation statement
         or of any new financing statement and shall promptly file any such
         amendment or new financing statement. The Servicer shall at all times
         maintain each office from which it shall service Receivables, and its
         principal executive office, within the United States of America.

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

                  (e)      The Servicer shall maintain its computer systems so
         that, from and after the time of sale under this Agreement of the
         Receivables to the Trust, the Servicer's master computer records that
         refer to any Receivable shall indicate clearly the interest of the
         Issuer and the Indenture Trustee in such Receivable and that such
         Receivable is owned by the Issuer and has been pledged to the Indenture
         Trustee. Indication of these respective interests in a Receivable shall
         be deleted from or modified on the Servicer's

                                       67
<PAGE>

         computer systems when, and only when, the related Receivable shall have
         become a Liquidated Receivable or been repurchased.

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

                  (g)      Upon receipt of a written request from the Owner
         Trustee or the Indenture Trustee, which request shall be made no more
         frequently than annually, the Servicer shall furnish to the Owner
         Trustee or the Indenture Trustee, as the case may be, within 20
         Business Days after receipt of such request, a list of all Receivables
         (by contract number and name of Obligor) then held as part of the
         Trust, together with a reconciliation of the list of Receivables
         attached hereto as Schedule A and to each of the Servicer's
         Certificates furnished before such request indicating removal of
         Receivables from the Trust. The Servicer shall permit the Indenture
         Trustee and its agents at any time during normal business hours upon
         reasonable prior notice to inspect, audit and make copies of and
         abstracts from the Servicer's records regarding any Receivable.

                  (h)      The Servicer shall deliver to the Owner Trustee and
         the Indenture Trustee:

                           (A)      upon the execution and delivery of this
                  Agreement and of each amendment hereto, an Opinion of Counsel,
                  based on customary assumptions and qualifications, stating
                  that, in the opinion of such counsel, either (A) all financing
                  statements and continuation statements have been executed and
                  filed that are necessary to perfect the interest of the Trust
                  and the Indenture Trustee in the Receivables, and reciting the
                  details of such filings or referring to prior Opinions of
                  Counsel in which such details are given, or (B) no such action
                  shall be necessary to preserve and protect such interest; and

                           (B)      if requested by the Indenture Trustee or the
                  Owner Trustee, not more frequently than annually, an Opinion
                  of Counsel, dated as of a date during such 90-day period,
                  either (A) stating that, in the opinion of such counsel, based
                  on customary assumptions and qualifications, all financing
                  statements and continuation statements have been executed and
                  filed that are necessary to perfect the interest of the Trust
                  and the Indenture Trustee in the Receivables, and reciting the
                  details of such filings or referring to prior Opinions of
                  Counsel in which such details are given, or (B) no such action
                  shall be necessary to preserve and protect such interest.

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

                                       68
<PAGE>

         SECTION 10.03 Notices. All demands, notices, communications and
instructions upon or to the Seller, the Servicer, the Owner Trustee, the
Indenture Trustee or the Rating Agencies under this Agreement shall be in
writing, personally delivered or mailed by certified mail, return receipt
requested, and shall be deemed to have been duly given upon receipt (a) in the
case of the Seller, to Nissan Auto Receivables Corporation II, 990 West 190th
Street, Torrance, California 90502, Attention of Secretary, (b) in the case of
the Servicer, to Nissan Motor Acceptance Corporation, 990 West 190th Street,
Torrance, California 90502, Attention of Secretary, (c) in the case of the
Issuer or the Owner Trustee, to Nissan Auto Receivables 2003-C Owner Trust, c/o
Wilmington Trust Company, Rodney Square North, 1100 North Market Street,
Wilmington, Delaware 19890, Attention: Nissan Auto Receivables 2003-C Owner
Trust, (d) in the case of the Indenture Trustee, at the Corporate Trust Office,
(e) in the case of Moody's, to Moody's Investors Service, ABS Monitoring
Department, 99 Church Street, New York, New York 10007, and (f) in the case of
Standard & Poor's, to Standard & Poor's, a division of The McGraw-Hill
Companies, Inc., 55 Water Street, New York, New York 10041-0003, Attention:
Asset Backed Surveillance Department; or, as to each of the foregoing, at such
other address as shall be designated by written notice to the other parties.

         SECTION 10.04 Assignment by the Seller or the Servicer. Notwithstanding
anything to the contrary contained herein, except as provided in Sections 6.04
and 7.03 of this Agreement and as provided in the provisions of this Agreement
concerning the resignation or termination of the Servicer, this Agreement may
not be assigned by the Seller or the Servicer without the prior written consent
of the Indenture Trustee, the Owner Trustee, the Holders of Notes evidencing not
less than 66 2/3% of the Outstanding Amount and the Holders of Certificates
evidencing not less than 66 2/3% of the Certificate Balance.

         SECTION 10.05 Limitations on Rights of Others. The provisions of this
Agreement are solely for the benefit of the Seller, the Servicer, the Issuer,
the Owner Trustee, the Certificateholders, the Indenture Trustee and the
Noteholders, and nothing in this Agreement, whether express or implied, shall be
construed to give to any other Person any legal or equitable right, remedy or
claim in the Owner Trust Estate or under or in respect of this Agreement or any
covenants, conditions or provisions contained herein.

         SECTION 10.06 Severability. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

         SECTION 10.07 Separate Counterparts. This Agreement may be executed by
the parties hereto in separate counterparts, each of which when so executed and
delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument.

         SECTION 10.08 Headings. The headings of the various Articles and
Sections herein are for convenience of reference only and shall not define or
limit any of the terms or provisions hereof.

                                       69
<PAGE>

         SECTION 10.09 Governing Law. This Agreement shall be construed in
accordance with the laws of the State of New York, without reference to its
conflict of law provisions (other than Section 5-1401 of the General Obligations
Law of the State of New York), and the obligations, rights and remedies of the
parties hereunder shall be determined in accordance with such laws.

         SECTION 10.10 Assignment by Issuer. The Seller hereby acknowledges and
consents to any mortgage, pledge, assignment and grant of a security interest by
the Issuer to the Indenture Trustee pursuant to the Indenture for the benefit of
the Noteholders of all right, title and interest of the Issuer in, to and under
the Receivables and the related property acquired hereunder and/or the
assignment of any or all of the Issuer's rights and obligations hereunder to the
Indenture Trustee.

         SECTION 10.11 Nonpetition Covenants.

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

                  (b)      Notwithstanding any prior termination of this
         Agreement, each of the Servicer and the Owner Trustee (not in its
         individual capacity but solely as Owner Trustee), prior to the date
         which is one year and one day after the Notes are paid in full,
         covenants and agrees that it will not at any time file, join in any
         filing of, or cooperate with or encourage others to file any
         bankruptcy, reorganization arrangement, insolvency or liquidation
         proceeding or other proceedings against the Seller under any federal or
         state bankruptcy, insolvency or similar law, appointing a receiver,
         liquidator, assignee, trustee, custodian, sequestrator or other similar
         official of the Seller or any substantial part of its property, or
         ordering the winding up or liquidation of the affairs of the Seller.

         SECTION 10.12 Limitation of Liability of Owner Trustee and Indenture
Trustee. Notwithstanding anything contained herein to the contrary, this
Agreement has been countersigned by Wilmington Trust Company, not in its
individual capacity, but solely in its capacity as Owner Trustee of the Issuer,
and by Wells Fargo Bank Minnesota, National Association, not in its individual
capacity, but solely in its capacity as Indenture Trustee under the Indenture.
In no event shall Wilmington Trust Company or Wells Fargo Bank Minnesota,
National Association have any liability for the representations, warranties,
covenants, agreements or other obligations of the Issuer hereunder or in any of
the certificates, notices or agreements delivered by the Seller or the Servicer,
or prepared by the Seller or the Servicer for delivery by the Owner Trustee on
behalf of the Issuer, pursuant hereto, as to all of which recourse shall be had
solely to the assets of the Issuer. For all purposes of this Agreement, in the
performance of its duties or obligations hereunder or in the performance of any
duties or

                                       70
<PAGE>

obligations of the Issuer hereunder, the Owner Trustee shall be
subject to, and entitled to the benefits of, the terms and provisions of
Articles VI, VII and VIII of the Trust Agreement.

         SECTION 10.13 Waivers. No failure or delay on the part of the Issuer in
exercising any power, right or remedy under this Agreement or the Assignment
shall operate as a waiver hereof or thereof, nor shall any single or partial
exercise of any such power, right or remedy preclude any other or further
exercise hereof or thereof or the exercise of any such power, right or remedy
preclude any other or further exercise hereof or thereof or the exercise of any
other power, right or remedy. Notwithstanding anything to the contrary, the
Issuer shall not waive any breach of representations and warranties as set forth
in Sections 3.01(e), (l), (n), (o), (aa) or (ee) without the written consent of
at least a majority of the Outstanding Amount of the Notes, voting as a single
class (excluding for such purposes the outstanding principal amount of any Notes
held of record or beneficially owned by NMAC, NARC II or any of their
Affiliates, unless at such time all of the Notes are held of record or
beneficially owned by NMAC, NARC II or any of their Affiliates.

                                       71
<PAGE>

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

                             NISSAN AUTO RECEIVABLES 2003-C OWNER TRUST

                             By:  WILMINGTON TRUST COMPANY,
                                  not in its individual capacity but solely as
                                  Owner Trustee on behalf of the Trust

                             By: /s/ Anita E. Dallago
                                 -------------------------------------------
                                 Name: Anita E. Dallago
                                 Title: Senior Financial Services Officer

                             NISSAN AUTO RECEIVABLES
                             CORPORATION II, as Seller

                             By: /s/ Joji Tagawa
                                 --------------------------------------------
                                 Name: Joji Tagawa
                                 Title: Treasurer

                             NISSAN MOTOR ACCEPTANCE
                             CORPORATION,
                             individually and as Servicer

                             By: /s/Steven R. Lambert
                                 --------------------------------------------
                                 Name: Steven R. Lambert
                                 Title: President

ACKNOWLEDGED AND ACCEPTED AS OF
THE DAY AND YEAR FIRST ABOVE WRITTEN:

WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION,
not in its individual capacity but solely as Indenture Trustee

By: /s/ Marianna C. Stershic
    -----------------------------------
    Name: Marianna C. Stershic
    Title: Vice President

                                      S-1
<PAGE>

                                   SCHEDULE A

                             SCHEDULE OF RECEIVABLES

                          TO BE DELIVERED UPON REQUEST.

                                      A-1

<PAGE>

                                   SCHEDULE B

                        LOCATION OF THE RECEIVABLE FILES

1.       Nissan Motor Acceptance Corporation, including its Infiniti Financial
         Services Division, 8900 Freeport Parkway, Irving, TX 75063-2438

2.       Iron Mountain, 1235 N. Union Bower, Irving, Texas 75061

3.       Nissan North America, Inc., Denver Data Center, 106 Inverness Circle,
         East Englewood, Colorado 80112-5312

4.       Arcus, 15505 East Hinsdale Circle, Englewood, Colorado 80112

5.       FDI Consulting, 1610 Arden Way, Suite 145, Sacramento, California 95815

<PAGE>

                                    EXHIBIT A

                       FORM OF YIELD SUPPLEMENT AGREEMENT

                            PLEASE SEE DOCUMENT #21.<PAGE>

                                                                     EXHIBIT 4.2

                                    INDENTURE

                   NISSAN AUTO RECEIVABLES 2003-C OWNER TRUST

                                    as Issuer

                                       and

                WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION

                              as Indenture Trustee

                          Dated as of November 13, 2003

<PAGE>

         INDENTURE (the "Indenture"), dated as of November 13, 2003, between
NISSAN AUTO RECEIVABLES 2003-C OWNER TRUST, a Delaware statutory trust (the
"Issuer"), and WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION, a national
banking association, as trustee and not in its individual capacity (the
"Indenture Trustee").

         Each party agrees as follows for the benefit of the other party and for
the equal and ratable benefit of (i) the Holders of the Issuer's 1.14750% Asset
Backed Notes, Class A-1 (the "Class A-1 Notes"), 1.62000% Asset Backed Notes,
Class A-2 (the "Class A-2 Notes"), 2.23000% Asset Backed Notes, Class A-3 (the
"Class A-3 Notes"), 2.70000% Asset Backed Notes, Class A-4 (the "Class A-4
Notes") 3.21000% Asset Backed Notes, Class A-5 (the "Class A-5 Notes" and,
together with the Class A-1, Class A-2, the Class A-3 Notes and the Class A-4
Notes, the "Notes") and (ii) for the purposes of the Granting Clause below, the
Certificateholders:

                                 GRANTING CLAUSE

         The Issuer hereby Grants to the Indenture Trustee at the Closing Date,
as Indenture Trustee for the benefit of the Holders of the Notes and
Certificates, the following:

         (i)      all right, title and interest of the Issuer in and to the
Receivables (including all related Receivable Files) and all monies due thereon
or paid thereunder or in respect thereof (including proceeds of the repurchase
of Receivables by the Seller pursuant to Section 3.02 of the Sale and Servicing
Agreement or the purchase of Receivables by the Servicer pursuant to Section
4.06 or 9.01 of the Sale and Servicing Agreement) after the Cutoff Date;

         (ii)     the Collection Account and amounts on deposit in the
Collection Account and the Yield Supplement Account;

         (iii)    the right of the Issuer in the security interests in the
Financed Vehicles granted by the Obligors pursuant to the Receivables and any
related property;

         (iv)     the right of the Issuer in any proceeds from claims on any
physical damage, credit life, credit disability or other insurance policies
covering the Financed Vehicles or the Obligors;

         (v)      the right of the Issuer (through the Seller and NMAC) to
receive payments in respect of any Dealer Recourse with respect to the
Receivables;

         (vi)     the rights of the Issuer under the Sale and Servicing
Agreement, and, through the Seller, under the Purchase Agreement and the
Assignment;

         (vii)    the rights of the Issuer under the Yield Supplement Agreement;

         (viii)   the right of the Issuer to realize upon any property
(including the right to receive future Net Liquidation Proceeds) that shall have
secured a Receivable;

         (ix)     the right of the Issuer in rebates of premiums and other
amounts relating to insurance policies and other items financed under the
Receivables in effect as of the Cutoff Date;

                                       1
<PAGE>

         (x)      all other assets comprising the Owner Trust Estate; and

         (xi)     all proceeds of the foregoing.

         The foregoing Grant is made in trust to secure the payment of principal
of and interest on, and any other amounts owing in respect of, the Notes,
equally and ratably without prejudice, priority or distinction, and to secure
compliance with the provisions of this Indenture, and subject to the subordinate
claims thereon of the Holder of the Certificates, all as provided in this
Indenture.

         The Indenture Trustee, as Indenture Trustee on behalf of the Holders of
the Notes and for the benefit of the Certificateholders, acknowledges such
Grant, accepts the trusts under this Indenture in accordance with the provisions
of this Indenture and agrees to perform its duties required in this Indenture to
the best of its ability to the end that the interests of the Holders of the
Notes may be adequately and effectively protected and the rights of the
Certificateholders secured.

                                    ARTICLE I
                   Definitions and Incorporation by Reference

         SECTION 1.01 Definitions. Except as otherwise specified herein or if
the context may otherwise require, capitalized terms used but not otherwise
defined herein have the meanings ascribed thereto in the Trust Agreement, the
Sale and Servicing Agreement and the Securities Account Control Agreement, as
the case may be, for all purposes of this Indenture. Except as otherwise
provided in this Indenture, whenever used herein the following words and
phrases, unless the context otherwise requires, shall have the following
meanings:

         "Action" has the meaning specified in Section 11.03(a).

         "Administration Agreement" means the Administration Agreement, dated as
of November 13, 2003, among the Administrator, the Issuer and the Indenture
Trustee.

         "Administrator" means NMAC or any successor Administrator under the
Administration Agreement.

         "Applicant" has the meaning specified in Section 7.01.

         "Authorized Officer" means with respect to the Issuer, any officer of
the Owner Trustee who is authorized to act for the Owner Trustee in matters
relating to the Issuer identified as such on any list of Authorized Officers
delivered by the Owner Trustee to the Indenture Trustee.

         "Book-Entry Notes" means a beneficial interest in the Class A-1 Notes,
the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes, and the Class A-5
Notes, ownership and transfers of which shall be made through book entries by a
Clearing Agency as described in Section 2.10.

         "Business Day" means any day except a Saturday, a Sunday or a day on
which banks in New York, New York, Los Angeles, California, Wilmington, Delaware
or Minneapolis,

                                       2
<PAGE>

Minnesota are authorized or obligated by law, regulation, executive order or
governmental decree to be closed.

         "Certificates" means the Certificates of the Issuer issued under the
Trust Agreement.

         "Class" means any one of the classes of the Notes.

         "Class A-1 Rate" means 1.14750% per annum (computed on the basis of
actual number of days in the related Interest Period and a 360-day year).

         "Class A-1 Notes" means the 1.14750% Asset Backed Notes, Class A-1,
substantially in the form attached hereto as Exhibit A.

         "Class A-2 Rate" means 1.62000% per annum (computed on the basis of a
360-day year consisting of twelve 30-day months).

         "Class A-2 Notes" means the 1.62000% Asset Backed Notes, Class A-2,
substantially in the form attached hereto as Exhibit A.

         "Class A-3 Rate" means 2.23000% per annum (computed on the basis of a
360-day year consisting of twelve 30-day months).

         "Class A-3 Notes" means the 2.23000% Asset Backed Notes, Class A-3,
substantially in the form attached hereto as Exhibit A.

         "Class A-4 Rate" means 2.70000% per annum (computed on the basis of a
360-day year consisting of twelve 30-day months).

         "Class A-4 Notes" means the 2.70000% Asset Backed Notes, Class A-4,
substantially in the form attached hereto as Exhibit A.

         "Class A-5 Rate" means 3.21000% per annum (computed on the basis of a
360-day year consisting of twelve 30-day months).

         "Class A-5 Notes" means the 3.21000% Asset Backed Notes, Class A-5,
substantially in the form attached hereto as Exhibit A.

         "Clearing Agency" means an organization registered as a "clearing
agency" pursuant to Section 17A of the Exchange Act.

         "Clearing Agency Participant" means a broker, dealer, bank, other
financial institution or other Person for whom from time to time a Clearing
Agency effects book-entry transfers and pledges of securities deposited with the
Clearing Agency.

         "Closing Date" means November 13, 2003.

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

                                       3
<PAGE>

         "Collateral" means the property of the Issuer subject to the Granting
Clause hereof, the Reserve Account, all amounts held from time to time in the
Reserve Account and all investments therein.

         "Corporate Trust Office" means the principal office of the Indenture
Trustee at which at any particular time its corporate trust business shall be
administered, which office at the date of execution of this Agreement is located
at Wells Fargo Center, Sixth and Marquette Avenue, MAC N9311-161, Minneapolis,
MN 55479, Attn: Asset Backed Securities Department, or at such other address as
the Indenture Trustee may designate from time to time by notice to the
Noteholders, the Issuer and the Administrator, or the principal corporate trust
office of any successor Indenture Trustee at the address designated by such
successor Indenture Trustee by notice to the Noteholders, the Issuer and the
Administrator.

         "Default" means any occurrence that is, or with notice or the lapse of
time or both would become, an Event of Default.

         "Definitive Notes" has the meaning specified in Section 2.10.

         "Event of Default" has the meaning specified in Section 5.01.

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

         "Executive Officer" means, with respect to any corporation, the Chief
Executive Officer, Chief Operating Officer, Chief Financial Officer, President,
Executive Vice President, any Vice President, the Secretary or the Treasurer of
such corporation; and with respect to any partnership, any general partner
thereof.

         "Grant" means mortgage, pledge, bargain, sell, warrant, alienate,
remise, release, convey, assign, transfer, create, and grant a lien upon and a
security interest in and right of set-off against, deposit, set over and confirm
pursuant to this Indenture. A Grant of the Collateral or of any other agreement
or instrument shall include all rights, powers and options (but none of the
obligations) of the granting party thereunder, including the immediate and
continuing right to claim for, collect, receive and give receipt for principal
and interest payments in respect of the Collateral and all other moneys payable
thereunder, to give and receive notices and other communications, to make
waivers or other agreements, to exercise all rights and options, to bring
Proceedings in the name of the granting party or otherwise, and generally to do
and receive anything that the granting party is or may be entitled to do or
receive thereunder or with respect thereto.

         "Holder" or "Noteholder" means the Person in whose name a Note is
registered on the Note Register.

         "Indenture Trustee" means Wells Fargo Bank Minnesota, National
Association, a national banking association, as Indenture Trustee under this
Indenture, or any successor Indenture Trustee under this Indenture.

         "Independent" means, when used with respect to any specified Person,
that the Person is in fact independent of the Seller, the Servicer, the
Administrator, the Issuer or any other obligor

                                       4
<PAGE>

on the Notes or any Affiliate of any of the foregoing Persons because, among
other things, such Person (a) is not an employee, officer or director or
otherwise controlled thereby or under common control therewith, (b) does not
have any direct financial interest or any material indirect financial interest
therein (whether as holder of securities thereof or party to contract therewith
or otherwise), and (c) is not and has not within the preceding twelve months
been a promoter, underwriter, trustee, partner, director or person performing
similar functions therefor or otherwise had legal, contractual or fiduciary or
other duties to act on behalf of or for the benefit thereof.

         "Independent Certificate" means a certificate or opinion to be
delivered to the Indenture Trustee, made by an Independent appraiser or other
expert appointed by an Issuer Order and approved by the Indenture Trustee in the
exercise of reasonable care, and such opinion or certificate shall state that
the signer has read the definition of "Independent" in this Indenture and that
the signer is Independent within the meaning thereof.

         "Interest Period" means, with respect to any Distribution Date and the
Class A-1 Notes, the period from (and including) the preceding Distribution Date
to (but excluding) such Distribution Date, except that the initial Interest
Period will be from (and including) the Closing Date to (but excluding) December
15, 2003, and, with respect to any Distribution Date and the Class A-2 Notes,
the Class A-3 Notes, the Class A-4 Notes, and the Class A-5 Notes, the period
from (and including) the 15th day of the preceding calendar month to (but
excluding) the 15th day of the month in which such Distribution Date occurs,
except that the initial Interest Period will be from (and including) the Closing
Date to (but excluding) December 15, 2003.

         "Interest Rate" means the Class A-1 Rate, the Class A-2 Rate, the Class
A-3 Rate, the Class A-4 Rate, or the Class A-5 Rate, as indicated by the
context.

         "Issuer" means Nissan Auto Receivables 2003-C Owner Trust unless and
until a successor replaces it and, thereafter, means the successor and, for
purposes of any provision contained herein and required by the TIA, each other
obligor on the Notes.

         "Issuer Order" and "Issuer Request" mean a written order or request
signed in the name of the Issuer by any one of its Authorized Officers and
delivered to the Indenture Trustee.

         "NMAC" means Nissan Motor Acceptance Corporation, in its individual
capacity and not as Servicer.

         "Note" means a Class A-1 Note, a Class A-2 Note, a Class A-3 Note, a
Class A-4 Note, or a Class A-5 Note.

         "Note Depository Agreement" means the agreement entitled "Letter of
Representations" dated on or before the Closing Date among the Clearing Agency,
the Issuer and the Indenture Trustee with respect to certain matters relating to
the duties thereof with respect to the Book-Entry Notes.

         "Note Owner" means, with respect to a Book-Entry Note, any Person who
is the beneficial owner of such Book-Entry Note, as reflected on the books of
the Clearing Agency or on the books of a Person maintaining an account with such
Clearing Agency (directly as a

                                       5
<PAGE>

Clearing Agency Participant or as an indirect participant, in each case in
accordance with the rules of such Clearing Agency).

         "Note Register" means the Register of Noteholders' information
maintained by the Note Registrar pursuant to Section 2.04.

         "Note Registrar" means the Indenture Trustee unless and until a
successor Note Registrar shall have been appointed pursuant to Section 2.04.

         "Officer's Certificate" means a certificate signed by any Authorized
Officer of the Issuer, under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 11.01, and delivered to
the Indenture Trustee.

         "Opinion of Counsel" means one or more written opinions of counsel who
may, except as otherwise expressly provided in this Indenture, be an employee of
or counsel to the Issuer, the Seller or the Servicer and which counsel shall be
reasonably satisfactory to the Owner Trustee, the Indenture Trustee or the
Rating Agencies, as the case may be.

         "Outstanding" means, as of the date of determination, all Notes
theretofore authenticated and delivered under this Indenture except:

         (a) Notes theretofore canceled by the Note Registrar or delivered to
the Note Registrar for cancellation;

         (b) Notes or portions thereof the payment for which money in the
necessary amount has been theretofore deposited with the Indenture Trustee or
any Paying Agent in trust for the Holders of such Notes; and

         (c) Notes in exchange for or in lieu of which other Notes have been
authenticated and delivered pursuant to this Indenture unless proof satisfactory
to the Indenture Trustee is presented that any such Notes are held by a
protected purchaser;

provided, that in determining whether the Holders of the requisite percentage of
the Outstanding Amount of the Notes, or any Class of Notes, have given any
request, demand, authorization, direction, notice, consent, or waiver hereunder
or under any Basic Document, Notes owned by the Issuer, any other obligor upon
the Notes, the Seller or any Affiliate of any of the foregoing Persons shall be
disregarded and deemed not to be Outstanding, except that, in determining
whether the Indenture Trustee shall be protected in relying upon any such
request, demand, authorization, direction, notice, consent, or waiver, only
Notes that the Indenture Trustee knows to be so owned shall be so disregarded.
Notes so owned that have been pledged in good faith may be regarded as
Outstanding if the pledgee establishes to the satisfaction of the Indenture
Trustee the pledgee's right so to act with respect to such Notes and that the
pledgee is not the Issuer, any other obligor upon the Notes, the Seller or any
Affiliate of any of the foregoing Persons.

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

                                       6
<PAGE>

         "Owner Trustee" means Wilmington Trust Company, not in its individual
capacity but solely as Owner Trustee under the Trust Agreement, or any successor
Owner Trustee under the Trust Agreement.

         "Paying Agent" means the Indenture Trustee or any other Person that
meets the eligibility standards for the Indenture Trustee specified in Section
6.11 that has been authorized by the Issuer to make payments to and
distributions from the Collection Account, including payment of principal of or
interest on the Notes on behalf of the Issuer.

         "Predecessor Note" means, with respect to any particular Note, every
previous Note evidencing all or a portion of the same debt as that evidenced by
such particular Note; and, for the purpose of this definition, any Note
authenticated and delivered under Section 2.05 in lieu of a mutilated, lost,
destroyed or stolen Note shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Note.

         "Proceeding" means any suit in equity, action at law or other judicial
or administrative proceeding.

         "Registered Holder" means the Person in whose name a Note is registered
on the Note Register on the applicable Record Date.

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

         "Sale and Servicing Agreement" means the Sale and Servicing Agreement,
dated as of November 13, 2003, among the Issuer, Nissan Auto Receivables
Corporation II, as Seller, and Nissan Motor Acceptance Corporation, as Servicer,
and as to which the Indenture Trustee is a third party beneficiary of certain
provisions.

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

         "Securities Account Control Agreement" shall have the meaning assigned
to such term in the Sale and Servicing Agreement.

         "Seller" shall mean Nissan Auto Receivables Corporation II, in its
capacity as seller under the Sale and Servicing Agreement, and its successor in
interest.

         "Servicer" shall mean Nissan Motor Acceptance Corporation, in its
capacity as servicer under the Sale and Servicing Agreement, and any Successor
Servicer thereunder.

         "Successor Servicer" has the meaning specified in Section 3.07.

         "Trust Estate" means all money, instruments, rights and other property
that are subject or intended to be subject to the lien and security interest of
this Indenture for the benefit of the

                                       7
<PAGE>

Noteholders (including, without limitation, all property and interests Granted
to the Indenture Trustee pursuant to the Granting Clause), including all
proceeds thereof.

         "Trust Indenture Act" or "TIA" means the Trust Indenture Act of 1939 as
in force on the date hereof, unless otherwise specifically provided.

         "UCC" means, unless the context otherwise requires, the Uniform
Commercial Code, as in effect in the relevant jurisdiction at the relevant time.

         SECTION 1.02 Usage of Terms. With respect to all terms in this
Indenture, the singular includes the plural and the plural the singular; words
importing any gender include the other genders; references to "writing" include
printing, typing, lithography and other means of reproducing words in a visible
form; references to agreements and other contractual instruments include all
subsequent amendments, amendments and restatements and supplements thereto or
changes therein entered into in accordance with their respective terms and not
prohibited by this Indenture; references to Persons include their permitted
successors and assigns; references to laws include their amendments and
supplements, the rules and regulations thereunder and any successors thereto;
and the term "including" means "including without limitation."

         SECTION 1.03 Incorporation by Reference of Trust Indenture Act.
Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture. The following
TIA terms used in this Indenture have the following meanings:

         "Commission" means the Securities and Exchange Commission.

         "indenture securities" means the Notes.

         "indenture security holder" means a Noteholder.

         "indenture to be qualified" means this Indenture.

         "indenture trustee" or "institutional trustee" means the Indenture
Trustee.

         "obligor" on the indenture securities means the Issuer and any other
obligor on the indenture securities.

         All other TIA terms used in this Indenture that are defined in the TIA,
defined in the TIA by reference to another statute or defined by Commission rule
have the meanings so assigned to them.

                                   ARTICLE II
                                    The Notes

         SECTION 2.01 Form. The Class A-1 Notes, the Class A-2 Notes, the Class
A-3 Notes, the Class A-4 Notes, and the Class A-5 Notes, in each case together
with the Indenture Trustee's certificate of authentication, shall be in
substantially the form set forth in Exhibit A, with such appropriate insertions,
omissions, substitutions and other variations as are required or

                                       8
<PAGE>

permitted by this Indenture, and may have such letters, numbers or other marks
of identification and such legends or endorsements placed thereon as may,
consistently herewith, be determined by the officers executing such Notes, as
evidenced by their execution thereof. Any portion of the text of any Note may be
set forth on the reverse thereof, with an appropriate reference thereto on the
face of the Note.

         The Definitive Notes shall be typewritten, printed, lithographed or
engraved or produced by any combination of these methods (with or without steel
engraved borders), all as determined by the officers executing such Notes, as
evidenced by their execution of such Notes.

         Each Note shall be dated the date of its authentication. The terms of
the Notes set forth in Exhibit A are part of the terms of this Indenture.

         SECTION 2.02 Execution, Authentication and Delivery. The Notes shall be
executed on behalf of the Issuer by any of its Authorized Officers. The
signature of any such Authorized Officer on the Notes may be manual or
facsimile. Notes bearing the manual or facsimile signature of individuals who
were at any time Authorized Officers of the Issuer shall bind the Issuer,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Notes or did not hold
such offices at the date of such Notes. The Indenture Trustee shall upon Issuer
Order authenticate and deliver the Class A-1 Notes for original issue in an
aggregate principal amount of $480,000,000, the Class A-2 Notes for original
issue in an aggregate principal amount of $452,000,000, the Class A-3 Notes for
original issue in an aggregate principal amount of $380,000,000, the Class A-4
Notes for original issue in an aggregate principal amount of $280,000,000, and
the Class A-5 Notes for original issue in an aggregate principal amount of
$265,440,000. The aggregate principal amount of the Class A-1 Notes, the Class
A-2 Notes, the Class A-3 Notes, the Class A-4 Notes, and the Class A-5 Notes
outstanding at any time may not exceed such respective amounts except as
provided in Section 2.05. The Notes shall be issuable as registered Notes in
denominations of $1,000 and any integral multiple thereof. Each Note shall be
dated the date of its authentication.

         No Note shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose, unless there appears on such Note a
certificate of authentication substantially in the form included in Exhibit A,
executed by the Indenture Trustee by the manual or facsimile signature of one of
its authorized signatories, and such certificate upon any Note shall be
conclusive evidence, and the only evidence, that such Note has been duly
authenticated and delivered hereunder.

         SECTION 2.03 Temporary Notes. Pending the preparation of Definitive
Notes, the Issuer may execute, and upon receipt of an Issuer Order the Indenture
Trustee shall authenticate and deliver, temporary Notes that are printed,
lithographed, typewritten, mimeographed or otherwise produced, of the tenor of
the Definitive Notes in lieu of which they are issued and with such variations
not inconsistent with the terms of this Indenture as the officers executing such
Notes may determine, as evidenced by their execution of such Notes. If temporary
Notes are issued, the Issuer will cause Definitive Notes to be prepared without
unreasonable delay. After the preparation of Definitive Notes, the temporary
Notes shall be exchangeable for Definitive Notes upon surrender of the temporary
Notes at the office or agency of the Issuer to be maintained as provided in
Section 3.02, without charge to the Holder. Upon

                                       9
<PAGE>

surrender for cancellation of any one or more temporary Notes of any Class, the
Issuer shall execute, and the Indenture Trustee shall authenticate and deliver
in exchange therefor, a like principal amount of Definitive Notes of such Class
of authorized denominations. Until so exchanged, the temporary Notes shall in
all respects be entitled to the same benefits under this Indenture as Definitive
Notes.

         SECTION 2.04 Registration; Registration of Transfer and Exchange.

         (a) The Note Registrar shall maintain a Note Register in which, subject
to such reasonable regulations as it may prescribe, the Note Registrar shall
provide for the registration of Notes and transfers and exchanges of Notes as
provided in this Indenture. The Indenture Trustee is hereby initially appointed
Note Registrar for the purpose of registering Notes and transfers and exchanges
of Notes as provided in this Indenture. In the event that, subsequent to the
Closing Date, the Indenture Trustee notifies the Issuer that it is unable to act
as Note Registrar, the Issuer shall appoint another bank or trust company,
having an office or agency located in the Borough of Manhattan, The City of New
York, agreeing to act in accordance with the provisions of this Indenture
applicable to it, and otherwise acceptable to the Indenture Trustee, to act as
successor Note Registrar under this Indenture.

                  If a Person other than the Indenture Trustee is appointed by
the Issuer as Note Registrar, the Issuer will give the Indenture Trustee prompt
written notice of the appointment of such Note Registrar and of the location,
and any change in the location, of the Note Register, and the Indenture Trustee
shall have the right to inspect the Note Register at all reasonable times and to
obtain copies thereof, and the Indenture Trustee shall have the right to rely
upon a certificate executed on behalf of the Note Registrar by an Executive
Officer thereof as to the names and addresses of the Holders of the Notes and
the principal amounts and number of such Notes.

         (b) Upon the proper surrender for registration of transfer of any Note
at the office or agency of the Issuer to be maintained as provided in Section
3.02, the Issuer shall execute, and the Indenture Trustee shall authenticate in
the name of the designated transferee or transferees, one or more new Notes of
the same Class in authorized denominations of a like aggregate principal amount.

         (c) At the option of the Holder, Notes may be exchanged for other Notes
of the same Class in any authorized denominations, of a like aggregate principal
amount, upon surrender of the Notes to be exchanged at such office or agency.
Whenever any Notes are so surrendered for exchange, the Issuer shall execute,
and the Indenture Trustee shall authenticate and the Noteholder shall obtain
from the Indenture Trustee, the Notes which the Noteholder making the exchange
is entitled to receive. Every Note presented or surrendered for registration of
transfer or exchange shall be accompanied by a written instrument of transfer in
form satisfactory to the Indenture Trustee and the Note Registrar duly executed
by the Holder thereof or his attorney duly authorized in writing.

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

                                       10
<PAGE>

         (e) All Notes surrendered for registration of transfer or exchange
shall be canceled and subsequently destroyed by the Indenture Trustee.

         SECTION 2.05 Mutilated, Destroyed, Lost or Stolen Notes. If (i) any
mutilated Note is surrendered to the Indenture Trustee, or the Indenture Trustee
receives evidence to its satisfaction of the destruction, loss or theft of any
Note, and (ii) there is delivered to the Indenture Trustee such security or
indemnity as may be required by it to hold the Issuer and the Indenture Trustee
harmless, then, in the absence of notice to the Issuer, the Note Registrar or
the Indenture Trustee that such Note has been acquired by a protected purchaser,
the Issuer shall execute, and upon its request the Indenture Trustee shall
authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Note, a replacement Note of the same Class. In
connection with the issuance of any new Note under this Section 2.05, the Issuer
may require payment by the Holder of such Note of a sum sufficient to cover any
tax or other governmental charge that may be imposed in relation thereto.

         If, after the delivery of such replacement Note or payment of a
destroyed, lost or stolen Note, a protected purchaser of the original Note in
lieu of which such replacement Note was issued presents for payment such
original Note, the Issuer and the Indenture Trustee shall be entitled to recover
such replacement Note (or such payment) from the Person to whom it was delivered
or any Person taking such replacement Note from such Person to whom such
replacement Note was delivered or any assignee of such Person, except a
protected purchaser, and shall be entitled to recover upon the security or
indemnity provided therefor to the extent of any loss, damage, cost or expense
incurred by the Issuer or the Indenture Trustee in connection therewith.

         Every replacement Note issued pursuant to this Section 2.05 in
replacement of any mutilated, destroyed, lost or stolen Note shall constitute an
original additional contractual obligation of the Issuer, whether or not the
mutilated, destroyed, lost or stolen Note shall be at any time enforceable by
anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes of the same Class duly issued
hereunder.

         The provisions of this Section 2.05 are exclusive and shall preclude
(to the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Notes.

         SECTION 2.06 Persons Deemed Owners. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Indenture Trustee and any
agent of the Issuer or the Indenture Trustee may treat the Person in whose name
any Note is registered (as of the day of determination) as the owner of such
Note for the purpose of receiving payments of principal of and interest, if any,
on such Note and for all other purposes whatsoever, and none of the Issuer, the
Indenture Trustee or any agent of the Issuer or the Indenture Trustee shall be
affected by notice to the contrary.

         SECTION 2.07 Payments of Principal and Interest.

         (a) The Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the
Class A-4 Notes, and the Class A-5 Notes shall accrue interest during each
Interest Period at the Class A-1 Rate,

                                       11
<PAGE>

the Class A-2 Rate, the Class A-3 Rate, the Class A-4 Rate, and the Class A-5
Rate, respectively, and such interest shall be payable on each related
Distribution Date as specified in the applicable Note by applying amounts
available pursuant to Section 5.06 of the Sale and Servicing Agreement and to
Section 3.01 of this Indenture. Any installment of interest or principal payable
on any Note that is punctually paid or duly provided for by the Issuer on the
applicable Distribution Date shall be paid to the Person in whose name such Note
(or one or more Predecessor Notes) is registered on the Record Date by wire
transfer in immediately available funds to the account designated by such
nominee, except for the final installment of principal payable with respect to
such Note on a Distribution Date or on the applicable Final Scheduled
Distribution Date, which shall be payable as provided below.

         (b) The principal of each Note shall be payable in installments on each
Distribution Date by applying amounts available pursuant to Section 5.06 of the
Sale and Servicing Agreement. Notwithstanding the foregoing, the entire unpaid
principal amount of the Notes shall be due and payable, if not previously paid,
from and after the date on which the Indenture Trustee or the Holders of a
majority of the Outstanding Amount of the Notes, voting as a single class
(excluding for such purpose the outstanding principal amount of any Notes held
of record or beneficially owned by NARC II, NMAC or any of their Affiliates,
unless at such time all of the Notes are held of record or beneficially owned by
NARC II, NMAC or any of their Affiliates), have declared the Notes to be
immediately due and payable in the manner provided in Section 5.02 in connection
with an Event of Default. All principal payments on each Class of Notes shall be
made pro rata to the Noteholders of such Class entitled thereto. The Indenture
Trustee shall notify the Person in whose name a Note is registered at the close
of business on the Record Date preceding the Distribution Date on which the
final installment of principal of and interest on such Note will be paid. Such
notice shall be mailed or transmitted by facsimile not less than 15 nor more
than 30 days prior to such final Distribution Date, shall specify that such
final installment will be payable only upon presentation and surrender of such
Note and shall specify the place where such Note may be presented and
surrendered for payment of such installment.

         SECTION 2.08 Cancellation. All Notes surrendered for payment,
registration of transfer or exchange shall, if surrendered to any Person other
than the Indenture Trustee, be delivered to the Indenture Trustee and shall be
promptly canceled by the Indenture Trustee. The Issuer may at any time deliver
to the Indenture Trustee for cancellation any Notes previously authenticated and
delivered hereunder which the Issuer may have acquired in any manner whatsoever,
and all Notes so delivered shall be promptly canceled by the Indenture Trustee.
No Notes shall be authenticated in lieu of or in exchange for any Notes canceled
as provided in this Section, except as expressly permitted by this Indenture.
All canceled Notes may be held or disposed of by the Indenture Trustee in
accordance with its standard retention or disposal policy as in effect at the
time unless the Issuer shall direct by an Issuer Order that they be destroyed or
returned to it; provided, that such Issuer Order is timely and the Notes have
not been previously disposed of by the Indenture Trustee.

         SECTION 2.09 Release of Collateral. Subject to Sections 8.05 and 11.01
and the terms of the Basic Documents, the Indenture Trustee shall release
property from the lien of this Indenture only upon receipt of an Issuer Request
accompanied by an Officer's Certificate, an Opinion of Counsel and Independent
Certificates in accordance with TIA Sections 314(c) and

                                       12
<PAGE>

314(d)(l) or an Opinion of Counsel in lieu of such Independent Certificates to
the effect that the TIA does not require any such Independent Certificates.

         SECTION 2.10 Book-Entry Notes. The Notes, upon original issuance, will
be issued in the form of typewritten Notes representing the Book-Entry Notes, to
be delivered to The Depository Trust Company, the initial Clearing Agency, or a
custodian therefor, by, or on behalf of, the Issuer. The Book-Entry Notes shall
be registered initially on the Note Register in the name of Cede & Co., the
nominee of the initial Clearing Agency, and no Note Owner thereof will receive a
Definitive Note representing such Note Owner's interest in such Note, except as
provided in Section 2.12. Unless and until definitive, fully registered Notes
(the "Definitive Notes") have been issued to such Note Owners pursuant to
Section 2.12:

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

         (b) the Note Registrar and the Indenture Trustee shall be entitled to
deal with the Clearing Agency for all purposes of this Indenture (including the
payment of principal of and interest on the Notes and the giving of instructions
or directions hereunder) as the authorized representative of the Note Owners;

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

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

         (e) whenever this Indenture requires or permits actions to be taken
based upon instructions or directions of Holders of Notes evidencing a specified
percentage of the Outstanding Amount of the Notes or of the Notes of any Class,
the Clearing Agency shall be deemed to represent such percentage only to the
extent that it has received instructions to such effect from Note Owners and/or
Clearing Agency Participants owning or representing, respectively, such required
percentage of the beneficial interest in the Notes and has delivered such
instructions to the Indenture Trustee.

         SECTION 2.11 Notices to Clearing Agency. Whenever a notice or other
communication to the Noteholders is required under this Indenture, unless and
until Definitive Notes shall have been issued to such Note Owners pursuant to
Section 2.12, the Indenture Trustee shall give all such notices and
communications specified herein to be given to Holders of the Notes to the
Clearing Agency and shall be deemed to have been given as of the date of
delivery to the Clearing Agency.

         SECTION 2.12 Definitive Notes. If (i) the Seller, the Owner Trustee or
the Administrator advises the Indenture Trustee in writing that the Clearing
Agency is no longer willing or able to properly discharge its responsibilities
with respect to the Book-Entry Notes and

                                       13
<PAGE>

the Seller, the Owner Trustee and the Administrator are unable to locate a
qualified successor (and if the Administrator has made such determination, the
Administrator has given written notice thereof to the Indenture Trustee), (ii)
the Seller, the Indenture Trustee or the Administrator at its option advises
each other such party in writing that it elects to terminate the book-entry
system through the Clearing Agency, or (iii) after the occurrence of an Event of
Default or a Servicer Default, Note Owners representing beneficial interests
aggregating a majority of the Outstanding Amount of the Notes of all Classes
advise the Indenture Trustee and the Clearing Agency in writing that the
continuation of a book-entry system through the Clearing Agency or a successor
thereto is no longer in the best interests of the Note Owners acting together as
a single Class, then the Clearing Agency shall notify all Note Owners and the
Indenture Trustee of the occurrence of such event and of the availability of
Definitive Notes to Note Owners requesting the same. Upon surrender to the
Indenture Trustee of the typewritten Notes representing the Book-Entry Notes by
the Clearing Agency, accompanied by registration instructions, the Issuer shall
execute and the Indenture Trustee shall authenticate the Definitive Notes in
accordance with the instructions of the Clearing Agency. None of the Issuer, the
Note Registrar or the Indenture Trustee shall be liable for any delay in
delivery of such instructions and may conclusively rely on, and shall be
protected in relying on, such instructions. Upon the issuance of Definitive
Notes, the Indenture Trustee shall recognize the Holders of the Definitive Notes
as Noteholders. The Indenture Trustee, Issuer and Administrator shall not be
liable for any inability to locate a qualified successor Clearing Agency. From
and after the date of issuance of Definitive Notes, all notices to be given to
Noteholders will be mailed thereto at their addresses of record in the Note
Register as of the relevant Record Date. Such notices will be deemed to have
been given as of the date of mailing.

         SECTION 2.13 Tax Treatment. The Issuer has entered into this Indenture,
and the Notes will be issued, with the intention that, for federal, state and
local income, single business and franchise tax purposes, the Notes will qualify
as indebtedness of the Issuer secured by the Trust Estate or, for periods during
which there is a single beneficial owner of the Certificates, indebtedness of
the Certificateholder issued by the Trust Estate. The Issuer, by entering into
this Indenture, and each Noteholder, by its acceptance of a Note (and each Note
Owner by its acceptance of an interest in the applicable Book-Entry Note), agree
to treat the Notes for federal, state and local income, single business and
franchise tax purposes as indebtedness of the Issuer.

                                   ARTICLE III
                    Covenants, Representations and Warranties

         SECTION 3.01 Payment of Principal and Interest. In accordance with the
terms of this Indenture, the Issuer will duly and punctually (i) pay the
principal of and interest, if any, on the Notes in accordance with the terms of
the Notes and (ii) cause the Servicer to direct the Indenture Trustee to release
from the Collection Account all other amounts distributable or payable from the
Owner Trust Estate under the Trust Agreement, the Sale and Servicing Agreement
and the Administration Agreement. Without limiting the foregoing and in order to
fulfill such obligations, pursuant to Sections 8.02 and 8.03 hereof, the Issuer
will cause the Servicer to direct the Indenture Trustee to apply all amounts on
deposit in the Collection Account, the Reserve Account and the Yield Supplement
Account on a Distribution Date deposited therein pursuant to the Sale and
Servicing Agreement (i) (a) for the benefit of the Class A-1 Notes, to the Class
A-1 Noteholders, (b) for the benefit of the Class A-2 Notes, to the Class

                                       14
<PAGE>

A-2 Noteholders, (c) for the benefit of the Class A-3 Notes, to the Class A-3
Noteholders, (d) for the benefit of the Class A-4 Notes, to the Class A-4
Noteholders, and (e) for the benefit of the Class A-5 Notes, to the Class A-5
Noteholders, and (ii) for the benefit of the Certificateholders, to or as
directed by the Owner Trustee or the Administrator, as set forth in Section
5.06, 5.07 and 5.08 of the Sale and Servicing Agreement. Amounts properly
withheld under the Code by any Person from a payment to any Noteholder of
interest and/or principal shall be considered as having been paid by the Issuer
to such Noteholder for all purposes of this Indenture.

         SECTION 3.02 Maintenance of Office or Agency. The Issuer will maintain
in the Borough of Manhattan, The City of New York, an office or agency where
Notes may be surrendered for registration of transfer or exchange, and where
notices and demands to or upon the Issuer in respect of the Notes and this
Indenture may be served. The Issuer hereby initially appoints the Indenture
Trustee to serve as its agent for the foregoing purposes. The Issuer will give
prompt written notice to the Indenture Trustee of the location, and of any
change in the location, of any such office or agency. If at any time the Issuer
shall fail to maintain any such office or agency or shall fail to furnish the
Indenture Trustee with the address thereof, such surrenders, notices and demands
may be made or served at the Corporate Trust Office, and the Issuer hereby
appoints the Indenture Trustee as its agent to receive all such surrenders,
notices and demands.

         SECTION 3.03 Money for Payments To Be Held in Trust. As provided in
Sections 8.02 and 8.03, all payments of amounts due and payable with respect to
any Notes that are to be made from amounts withdrawn from the Collection
Account, the Reserve Account or the Yield Supplement Account pursuant to
Sections 8.02 and 8.03 shall be made on behalf of the Issuer by the Indenture
Trustee or by the Paying Agent, and no amounts so withdrawn from such accounts
for payments of Notes shall be paid over to the Issuer, the Owner Trustee or the
Administrator except as provided in this Section.

         On or before each Distribution Date, the Issuer shall deposit in the
Collection Account or, in accordance with the Sale and Servicing Agreement,
cause to be deposited (including the provision of instructions to the Indenture
Trustee to make any required withdrawals from the Reserve Account or the Yield
Supplement Account and to deposit such amounts in the Collection Account), an
aggregate sum sufficient to pay the amounts then becoming due under the Notes
and the Certificates, such sum to be held in trust for the benefit of the
Persons entitled thereto, and (unless the Paying Agent is the Indenture Trustee)
shall promptly notify the Indenture Trustee of its action or failure so to act.

         The Indenture Trustee, as Paying Agent, hereby agrees with the Issuer
that it will, and the Issuer will cause each Paying Agent other than the
Indenture Trustee, as a condition to its acceptance of its appointment as Paying
Agent, to execute and deliver to the Indenture Trustee an instrument in which
such Paying Agent shall agree with the Indenture Trustee, subject to the
provisions of this Section, that such Paying Agent will:

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

                                       15
<PAGE>

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

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

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

         (e) comply with all requirements of the Code with respect to the
withholding from any payments made by it on any Notes or Certificates (or
assisting the Issuer to withhold from payment to the Certificateholders) of any
applicable withholding taxes imposed thereon and with respect to any applicable
reporting requirements in connection therewith.

         The Issuer may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, by Issuer
Order direct any Paying Agent to pay to the Indenture Trustee all sums held in
trust by such Paying Agent, such sums to be held by the Indenture Trustee upon
the same trusts as those upon which the sums were held by such Paying Agent; and
upon such payment by any Paying Agent to the Indenture Trustee, such Paying
Agent shall be released from all further liability with respect to such money.

         Subject to applicable laws with respect to escheat of funds, any money
held by the Indenture Trustee or any Paying Agent in trust for the payment of
any amount due with respect to any Note and remaining unclaimed after such
amount has become due and payable and after the Indenture Trustee has taken the
steps described in this paragraph shall be discharged from such trust and be
paid to Children's Hospital Los Angeles upon presentation thereto of an Issuer
Request; and the Holder of such Note shall thereafter, as an unsecured general
creditor, look only to the Issuer for payment thereof, and all liability of the
Indenture Trustee or such Paying Agent with respect to such trust money shall
thereupon cease. In the event that any Noteholder shall not surrender its Notes
for retirement within six months after the date specified in the written notice
of final payment described in Section 2.07, the Indenture Trustee will give a
second written notice to the registered Noteholders that have not surrendered
their Notes for final payment and retirement. If within one year after such
second notice any Notes have not been surrendered, the Indenture Trustee shall,
at the expense and direction of the Issuer, cause to be published once, in a
newspaper published in the English language, customarily published on each
Business Day and of general circulation in The City of New York, notice that
such money remains unclaimed and that, after a date specified therein, which
shall not be less than 30 days from the date of such publication, any unclaimed
balance of such money then remaining will be paid to Children's Hospital Los
Angeles. The Indenture Trustee shall also adopt and employ, at the expense and
direction of the Issuer, any other reasonable means of notification of such
repayment specified by the Issuer or the Administrator.

                                       16
<PAGE>

         SECTION 3.04 Existence. The Issuer will keep in full effect its
existence, rights and franchises as a statutory trust under the laws of the
State of Delaware (unless it becomes, or any successor Issuer hereunder is or
becomes, organized under the laws of any other State or of the United States of
America, in which case the Issuer will keep in full effect its existence, rights
and franchises under the laws of such other jurisdiction) and will obtain and
preserve its qualification to do business in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Indenture, the Notes, the Collateral and each other
instrument or agreement included in the Trust Estate or the Owner Trust Estate.

         SECTION 3.05 Protection of Trust Estate. The Issuer will from time to
time execute and deliver all such supplements and amendments hereto and all such
financing statements, continuation statements, instruments of further assurance
and other instruments, and will take such other action necessary or advisable
to:

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

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

         (c) enforce any of the Collateral; or

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

         The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact to execute any financing statement, continuation statement or
other instrument required to be executed pursuant to this Section 3.05.

         SECTION 3.06 Opinions as to Trust Estate.

         (a) On the Closing Date, the Issuer shall furnish or cause to be
furnished to the Indenture Trustee an Opinion of Counsel either stating that, in
the opinion of such counsel, such action has been taken with respect to the
execution, recording and filing of this Indenture, any indentures supplemental
hereto, any requisite financing statements and continuation statements and any
other requisite documents necessary to perfect and make effective the lien and
security interest of this Indenture or stating that, in the opinion of such
counsel, no such action is necessary to make such lien and security interest
effective.

         (b) As and when specified in Section 10.02(h) of the Sale and Servicing
Agreement, the Issuer shall furnish or cause to be furnished to the Indenture
Trustee an Opinion of Counsel either stating that, in the opinion of such
counsel, such action has been taken with respect to the execution, recording,
filing or re-recording and refiling of this Indenture, any indentures
supplemental hereto, any financing statements and continuation statements and
any other requisite documents necessary to maintain the lien and security
interest created by this Indenture or stating that in the opinion of such
counsel no such action is necessary to maintain such lien and security interest.
Such Opinion of Counsel shall also describe the execution, recording, filing or
re-recording and refiling of this Indenture, any indentures supplemental hereto,
any

                                       17
<PAGE>

financing statements and continuation statements and any other documents that
will, in the opinion of such counsel, be required to maintain the lien and
security interest of this Indenture until the date in the following calendar
year on which such Opinion of Counsel must again be delivered.

         SECTION 3.07 Performance of Obligations; Servicing of Receivables.

         (a) The Issuer will not take any action and will use its best efforts
not to permit any action to be taken by others that would release any Person
from any of such Person's material covenants or obligations under any instrument
or agreement included in the Trust Estate or that would result in the amendment,
hypothecation, subordination, termination or discharge of, or impair the
validity or effectiveness of, any such instrument or agreement, except as
expressly provided in the Basic Documents.

         (b) The Issuer may contract with other Persons to assist it in
performing its duties under this Indenture, and any performance of such duties
by a Person identified to the Indenture Trustee in an Officer's Certificate of
the Issuer shall be deemed to be action taken by the Issuer. Initially, the
Issuer has contracted with the Servicer and the Administrator to assist the
Issuer in performing its duties under this Indenture.

         (c) The Issuer will punctually perform and observe all of its
obligations and agreements contained in the Basic Documents and in the
instruments and agreements included in the Trust Estate, including but not
limited to filing or causing to be filed all UCC financing statements and
continuation statements required to be filed by the terms of the Trust
Agreement, this Indenture and the Sale and Servicing Agreement in accordance
with and within the time periods provided for herein and therein.

         (d) If an Authorized Officer of the Issuer shall have knowledge of the
occurrence of a Servicer Default under the Sale and Servicing Agreement, the
Issuer shall promptly notify the Indenture Trustee and the Rating Agencies
thereof, and shall specify in such notice the action, if any, the Issuer is
taking with respect of such default. If a Servicer Default shall arise from the
failure of the Servicer to perform any of its duties or obligations under the
Sale and Servicing Agreement with respect to the Receivables, the Issuer shall
take all reasonable steps available to it to remedy such failure.

         (e) As promptly as possible after the giving of notice of termination
to the Servicer of the Servicer's rights and powers pursuant to Section 8.01 of
the Sale and Servicing Agreement, the Indenture Trustee shall appoint a
successor servicer (the "Successor Servicer"), and such Successor Servicer shall
accept its appointment by a written assumption in a form acceptable to the
Indenture Trustee. In the event that a Successor Servicer has not been appointed
and accepted its appointment as set forth in Section 8.02 of the Sale and
Servicing Agreement, the Indenture Trustee without further action shall
automatically be appointed the Successor Servicer and shall thereafter be
entitled to the Total Servicing Fee. Notwithstanding the above, the Indenture
Trustee shall, if it shall be legally unable so to act, appoint or petition a
court of competent jurisdiction to appoint, and the predecessor Servicer, if no
successor Servicer has been appointed at the time the predecessor Servicer has
ceased to act, may petition a court of competent jurisdiction to appoint, any
established institution having a net worth of not less than

                                       18
<PAGE>

$100,000,000 and whose regular business shall include the servicing of
automobile and/or light-duty truck receivables, as the successor to the Servicer
under the Sale and Servicing Agreement. Upon such appointment, the Indenture
Trustee will be released from the duties and obligations of acting as Successor
Servicer, such release effective upon the effective date of the servicing
agreement entered into between the Successor Servicer and the Issuer.

         In connection with any such appointment, the Indenture Trustee may make
such arrangements for the compensation of such successor as it and such
Successor Servicer shall agree, subject to the limitations set forth below and
in the Sale and Servicing Agreement, and in accordance with Section 8.02 of the
Sale and Servicing Agreement, the Issuer shall enter into an agreement with such
Successor Servicer for the servicing of the Receivables (such agreement to be in
form and substance satisfactory to the Indenture Trustee). If the Indenture
Trustee shall succeed to the Servicer's duties as servicer of the Receivables as
provided herein, it shall do so in its individual capacity and not in its
capacity as Indenture Trustee and, accordingly, the provisions of Article VI
hereof shall be inapplicable to the Indenture Trustee in its duties as Successor
Servicer and the servicing of the Receivables. In case the Indenture Trustee
shall become the Successor Servicer, the Indenture Trustee shall be entitled to
appoint as a subservicer any one of its Affiliates, provided that the Indenture
Trustee, in its capacity as Successor Servicer, shall remain fully liable for
the actions and omissions of such Affiliate.

         (f) Upon any termination of the Servicer's rights and powers pursuant
to the Sale and Servicing Agreement, the Issuer shall promptly notify the
Indenture Trustee. As soon as a Successor Servicer is appointed, the Issuer
shall notify the Indenture Trustee of such appointment, specifying in such
notice the name and address of such Successor Servicer.

         (g) Without derogating from the absolute nature of the assignment
granted to the Indenture Trustee under this Indenture or the rights of the
Indenture Trustee hereunder, the Issuer agrees (i) that it will not, without the
prior written consent of the Indenture Trustee and the Holders of a majority in
Outstanding Amount of the Notes, voting as a single class (excluding for such
purposes the outstanding principal amount of any Notes held of record or
beneficially owned by NMAC, NARC II or any of their Affiliates, unless at such
time all of the Notes are held of record or beneficially owned by NARC II, NMAC
or any of their Affiliates), amend, modify, waive, supplement, terminate or
surrender, or agree to any amendment, modification, waiver, supplement,
termination or surrender of, the terms of any Collateral (except to the extent
otherwise provided in the Sale and Servicing Agreement) or the Basic Documents,
or waive timely performance or observance by the Servicer or the Seller under
the Sale and Servicing Agreement; and (ii) that any such amendment shall not (A)
increase or reduce in any manner the amount of, or accelerate or delay the
timing of, collections of payments on the Receivables or distributions that are
required to be made for the benefit of the Noteholders or change the Interest
Rate or the Specified Reserve Account Balance (except as otherwise provided in
the Basic Documents), in each case without the consent of each of the "adversely
affected" Noteholders, or (B) reduce the aforesaid percentage of the Notes that
is required to consent to any such amendment, without the consent of the Holders
of all the outstanding Notes. If any such amendment, modification, supplement or
waiver shall be so consented to by the Indenture Trustee or such Holders, the
Issuer agrees, promptly following a request by the Indenture Trustee to agree to
such amendment and to execute and deliver, in its own name and at its own
expense, such agreements, instruments, consents and other documents as the
Indenture Trustee may deem

                                       19
<PAGE>

necessary or appropriate in the circumstances to implement such amendment and to
cause the relevant Basic Documents, as amended, to be enforceable against the
Issuer. For the purposes of clause (ii) above, an amendment will be deemed not
to "adversely affect" a Noteholder of any Class only if each Rating Agency
confirms that such amendment will not result in a reduction or withdrawal of its
rating on such Class of Notes.

         SECTION 3.08 Negative Covenants. So long as any Notes are Outstanding,
the Issuer shall not:

         (a) except as expressly permitted by Basic Documents, sell, transfer,
exchange or otherwise dispose of any of the properties or assets of the Issuer,
including those included in the Trust Estate, unless directed to do so by the
Indenture Trustee;

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

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

         (d) assume or incur any indebtedness other than the Notes or as
expressly contemplated by this Indenture (in connection with the obligation to
reimburse Advances from the Trust Estate, or to pay expenses from the Trust
Estate) or by the Basic Documents as in effect on the date hereof.

         SECTION 3.09 Annual Statement as to Compliance. The Issuer will cause
the Servicer to deliver to the Indenture Trustee concurrently with its delivery
thereof to the Issuer the annual statement of compliance described in Section
4.09 of the Sale and Servicing Agreement. In addition, on the same date annually
upon which such annual statement of compliance is to be delivered by the
Servicer, the Issuer shall deliver to the Indenture Trustee an Officer's
Certificate stating, as to the Authorized Officer signing such Officer's
Certificate, that:

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

         (b) to the best of such Authorized Officer's knowledge, based on such
review, the Issuer has complied with all conditions and covenants under this
Indenture throughout such year, or, if

                                       20
<PAGE>
there has been a default in its compliance with any such condition or covenant,
specifying each such default known to such Authorized Officer and the nature and
status thereof.

         SECTION 3.10 Issuer May Consolidate, etc., Only on Certain Terms.

         (a) The Issuer shall not consolidate or merge with or into any other
Person, unless:

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

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

                  (iii)    no Rating Agency shall have notified the Indenture
         Trustee and the Owner Trustee that such transaction might or would
         result in the removal or reduction of the rating then assigned thereby
         to any Class of Notes;

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

                  (v)      any action that is necessary to maintain each lien
         and security interest created by the Trust Agreement, the Sale and
         Servicing Agreement or this Indenture shall have been taken; and

                  (vi)     the Issuer shall have delivered to the Indenture
         Trustee an Officer's Certificate and an Opinion of Counsel each stating
         that such consolidation or merger and any related supplemental
         indenture complies with this Article III and that all conditions
         precedent provided in this Indenture relating to such transaction have
         been complied with (including any filing required by the Exchange Act).

         (b)The Issuer shall not convey or transfer any of its properties or
assets, including those included in the Trust Estate, to any Person, unless:

                  (i)      the Person that acquires by conveyance or transfer
         such properties and assets of the Issuer shall (A) be a United States
         citizen or a Person organized and existing under the laws of the United
         States of America or any state or the District of Columbia, (B)
         expressly assume, by an indenture supplemental hereto, executed and
         delivered to the Indenture Trustee, in form satisfactory to the
         Indenture Trustee, the duty to make due and punctual payment of the
         principal of and interest on all Notes and the performance or
         observance of every agreement and covenant of this Indenture on the
         part of the Issuer to

                                       21
<PAGE>

         be performed or observed, all as provided herein, (C) expressly agrees
         by means of such supplemental indenture that all right, title and
         interest so conveyed or transferred shall be subject and subordinate to
         the rights of Holders of the Notes, (D) unless otherwise provided in
         such supplemental indenture, expressly agrees to indemnify, defend and
         hold harmless the Issuer, the Owner Trustee and the Indenture Trustee
         against and from any loss, liability or expense arising under or
         related to this Indenture and the Notes, and (E) expressly agrees by
         means of such supplemental indenture that such Person (or if a group of
         Persons, then one specified Person) shall make all filings that counsel
         satisfactory to such purchaser or transferee and the Indenture Trustee
         determines must be made with (1) the Commission (and any other
         appropriate Person) required by the Exchange Act or the appropriate
         authorities in any state in which the Notes have been sold pursuant to
         any qualification or exemption under the securities or "blue sky" laws
         of such state, in connection with the Notes or (2) the Internal Revenue
         Service or the relevant state or local taxing authorities of any
         jurisdiction;

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

                  (iii)    no Rating Agency shall have notified the Indenture
         Trustee and the Owner Trustee that such transaction might or would
         result in the removal or reduction of the rating then assigned thereby
         to any Class of Notes;

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

                  (v)      any action that is necessary to maintain each lien
         and security interest created by the Trust Agreement, the Sale and
         Servicing Agreement or this Indenture shall have been taken; and

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

         SECTION 3.11 Successor or Transferee.

         (a) Upon any consolidation or merger of the Issuer in accordance with
Section 3.10(a), the Person formed by or surviving such consolidation or merger
(if other than the Issuer) shall succeed to, and be substituted for, and may
exercise every right and power of, the Issuer under this Indenture with the same
effect as if such Person had been named as the Issuer herein.

         (b) Upon a conveyance or transfer of all the assets and properties of
the Issuer pursuant to Section 3.10(b), Nissan Auto Receivables 2003-C Owner
Trust will be released from every covenant and agreement of this Indenture to be
observed or performed on the part of the Issuer with respect to the Notes and
the Certificates immediately upon the delivery of written notice to

                                       22
<PAGE>

the Indenture Trustee stating that Nissan Auto Receivables 2003-C Owner Trust is
to be so released.

         SECTION 3.12 No Other Business. Unless and until the Issuer shall have
been released from its duties and obligations hereunder, the Issuer shall not
engage in any business other than financing, purchasing, owning, selling and
managing the Receivables in the manner contemplated by the Basic Documents and
activities incidental thereto.

         SECTION 3.13 No Borrowing. Unless and until the Issuer shall have been
released from its duties and obligations hereunder, the Issuer shall not issue,
incur, assume, guarantee or otherwise become liable, directly or indirectly, for
any indebtedness except for the Notes or other obligations permitted hereunder
(including the obligation to reimburse Advances or certain expenses of the
Servicer) or under another Basic Document (including indemnification expenses of
the Issuer and certain fees and expenses of the Administrator).

         SECTION 3.14 Servicer's Notice Obligations. The Issuer shall cause the
Servicer to comply with all of its duties and obligations with respect to the
preparation of reports, the delivery of Officer's Certificates and Opinions of
Counsel and the giving of instructions and notices under the Sale and Servicing
Agreement (including, but not limited to, under Sections 4.08, 4.09, 4.11, 4.13,
5.09 and Article IX thereof).

         SECTION 3.15 Guarantees, Loans, Advances and Other Liabilities. Unless
and until the Issuer shall have been released from its duties and obligations
hereunder, except as contemplated by the Sale and Servicing Agreement or this
Indenture, the Issuer shall not make any loan or advance or credit to, or
guarantee (directly or indirectly or by an instrument having the effect of
assuring another's payment or performance on any obligation or capability of so
doing or otherwise), endorse or otherwise become contingently liable, directly
or indirectly, in connection with the obligations, stocks or dividends of, or
own, purchase, repurchase or acquire (or agree contingently to do so) any stock,
obligations, assets or securities of, or any other interest in, or make any
capital contribution to, any other Person.

         SECTION 3.16 Capital Expenditures. Unless and until the Issuer shall
have been released from its duties and obligations hereunder, the Issuer shall
not make any expenditure (by long-term or operating lease or otherwise) for
capital assets (either realty or personalty).

         SECTION 3.17 Removal of Administrator. So long as any Notes are
Outstanding, the Issuer shall not remove the Administrator without cause unless
so instructed by the Owner Trustee or the Indenture Trustee and unless each
Rating Agency shall have received 10 days' written notice thereof and shall not
have notified the Indenture Trustee, the Administrator or the Owner Trustee that
such removal might or would result in the removal or reduction of the rating, if
any, then assigned thereby to any Class of Notes or the Certificates.

         SECTION 3.18 Restricted Payments. The Issuer shall not, directly or
indirectly, (i) pay any dividend or make any distribution (by reduction of
capital or otherwise), whether in cash, property, securities or a combination
thereof, to the Servicer, the Owner Trustee or any Certificateholder or
otherwise with respect to any ownership or equity interest or security in or of
the Issuer, (ii) redeem, purchase, retire or otherwise acquire for value any
such ownership or

                                       23
<PAGE>

equity interest or security or (iii) set aside or otherwise segregate any
amounts for any such purpose; provided, however, that the Issuer may make, or
cause to be made, (x) distributions to the Servicer, the Owner Trustee and the
Certificateholders as contemplated by, and to the extent funds are available for
such purpose under, the Sale and Servicing Agreement or the Trust Agreement, and
(y) payments to the Owner Trustee or the Indenture Trustee pursuant to the
Administration Agreement. The Issuer will not, directly or indirectly, make
payments to or distributions from the Collection Account except in accordance
with the Basic Documents.

         SECTION 3.19 Notice of Events of Default. The Issuer shall give the
Indenture Trustee and each Rating Agency prompt written notice of each Event of
Default hereunder, each default on the part of the Servicer or the Seller of its
obligations under the Sale and Servicing Agreement (including any Servicer
Defaults) and each default on the part of NMAC of its obligations under the
Purchase Agreement. The Indenture Trustee shall notify each Noteholder of record
in writing of any Event of Default promptly upon a Responsible Officer obtaining
actual knowledge thereof. Such notices will be provided in accordance with
Section 2.11.

         SECTION 3.20 Further Instruments and Actions. Upon request of the
Indenture Trustee, the Issuer will execute and deliver such further instruments
and do such further acts as may be reasonably necessary or proper to carry out
more effectively the purpose of this Indenture.

         SECTION 3.21 Representations and Warranties. The Issuer makes the
following representations and warranties. Such representations and warranties
speak as of the execution and delivery of this Indenture and as of the Closing
Date, but shall survive the Closing Date. Notwithstanding anything to the
contrary, the Indenture Trustee shall not waive any breach of representations or
warranties in this Section 3.21 without the written consent of at least a
majority of the Outstanding Amount of the Notes, voting as a single class
(excluding for such purposes the outstanding principal amount of any Notes held
of record or beneficially owned by NMAC, NARC II or any of their Affiliates,
unless at such time all of the Notes are held of record or beneficially owned by
NMAC, NARC II or any of their Affiliates).

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

         (b) The Issuer has taken all steps necessary to perfect its security
interest against the Obligor in the property securing the Receivables.

         (c) The Collateral constitutes "tangible chattel paper" within the
meaning of the applicable UCC.

         (d) The Issuer owns and has good and marketable title to the Collateral
free and clear of any Lien, claim or encumbrance of any Person.

         (e) The Issuer has caused or will have caused, within ten days, the
filing of all appropriate financing statements in the proper filing office in
the appropriate jurisdictions under

                                       24
<PAGE>

applicable law in order to perfect the security interest in the Collateral
granted to the Indenture Trustee hereunder.

         (f) Other than the security interest granted to the Indenture Trustee
pursuant to this Indenture, the Issuer has not pledged, assigned, sold, granted
a security interest in, or otherwise conveyed any of the Collateral. The Issuer
has not authorized the filing of and is not aware of any financing statements
against the Issuer that includes a description of collateral covering the
Collateral other than any financing statement relating to the security interest
granted to the Indenture Trustee hereunder or a financing statement as to which
the security interest covering the Receivables has been released. The Issuer is
not aware of any judgment or tax lien filings against the Issuer.

         (g) The Servicer, as an agent of the Issuer, has in its possession all
original copies of the Receivable File that constitute or evidence the
Collateral. The Receivable Files that constitute or evidence the Collateral do
not have any marks or notations indicating that they have been pledged, assigned
or otherwise conveyed by the Issuer to any Person other than the Indenture
Trustee. All financing statements filed or to be filed against the Issuer in
favor of the Indenture Trustee in connection herewith describing the Collateral
contain a statement to the following effect: "A purchase of or security interest
in any collateral described in this financing statement, except as permitted in
the Indenture, will violate the rights of the Indenture Trustee."

                                   ARTICLE IV
                           Satisfaction and Discharge

         SECTION 4.01 Satisfaction and Discharge of Indenture. This Indenture
shall cease to be of further effect with respect to the Notes except as to (i)
rights of registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments
of principal thereof and interest thereon, (iv) Sections 3.03, 3.04, 3.05, 3.08,
3.10, 3.12 and 3.13, (v) the rights, obligations and immunities of the Indenture
Trustee hereunder (including the rights of the Indenture Trustee under Section
6.07 and the obligations of the Indenture Trustee under Sections 3.03 and 4.02),
and (vi) the rights of the Noteholders and the Certificateholders as
beneficiaries hereof with respect to the property so deposited with the
Indenture Trustee payable to all or any of them, and the Indenture Trustee, on
demand of and at the expense of the Issuer, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture with respect to the
Notes, when:

         (a) either (1) all Notes theretofore authenticated and delivered (other
than Notes that have been destroyed, lost or stolen and that have been replaced
or paid as provided in Section 2.05 and Notes for whose payment money has
theretofore been deposited in trust or segregated and held in trust by the
Issuer and thereafter repaid to the Issuer or discharged from such trust, as
provided in Section 3.03) have been delivered to the Indenture Trustee for
cancellation or (2) all Notes not theretofore delivered to the Indenture Trustee
for cancellation have become due and payable or will become due and payable
within one year (either because the Final Scheduled Distribution Date for the
Class A-5 Notes is within one year or because the Indenture Trustee has received
notice of the exercise of the option granted pursuant to Section 9.01 of the
Sale and Servicing Agreement) and the Issuer has irrevocably deposited or caused
to be irrevocably deposited with the Indenture Trustee cash or direct
obligations of or obligations guaranteed by the United States

                                       25
<PAGE>

of America (which will mature prior to the date such amounts are payable), in
trust for such purpose, in an amount sufficient to pay and discharge the entire
indebtedness on such Notes not theretofore delivered to the Indenture Trustee
for cancellation when due;

         (b) the Issuer has paid or caused to be paid all other sums payable
hereunder by the Issuer; and

         (c) the Issuer has delivered to the Indenture Trustee, an Officer's
Certificate, (if required by the TIA or the Indenture Trustee) an Opinion of
Counsel and (if required by the TIA or the Indenture Trustee) an Independent
Certificate from a firm of certified public accountants, each meeting the
applicable requirements of Section 11.01 and, subject to Section 11.02, each
stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture have been complied with.

         SECTION 4.02 Application of Trust Money. All moneys deposited with the
Indenture Trustee pursuant to Section 4.01 hereof shall be held in trust and (a)
applied by it in accordance with the provisions of the Notes and this Indenture
to the payment, either directly or through any Paying Agent, as the Indenture
Trustee may determine, to the Holders of the particular Notes for the payment of
which such moneys have been deposited with the Indenture Trustee, of all sums
due and to become due thereon for principal and interest or (b) released to the
Owner Trustee for application pursuant to the Trust Agreement or the Sale and
Servicing Agreement; but such moneys need not be segregated from other funds
except to the extent required herein or in the Sale and Servicing Agreement or
required by law.

         SECTION 4.03 Repayment of Moneys Held by Paying Agent. In connection
with the satisfaction and discharge of this Indenture with respect to the Notes,
all moneys then held by any Paying Agent other than the Indenture Trustee under
the provisions of this Indenture with respect to such Notes shall, upon demand
of the Issuer, be paid to the Indenture Trustee to be held and applied according
to Section 3.03 or 4.02 and thereupon such Paying Agent shall be released from
all further liability with respect to such moneys.

                                   ARTICLE V
                                   Remedies

         SECTION 5.01 Events of Default. "Event of Default," wherever used
herein, means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be effected
by operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

         (a) default in the payment of any interest on any Note when the same
becomes due and payable, and such default shall continue for a period of five
days;

         (b) default in the payment of the principal of or any installment of
the principal of any Note when the same becomes due and payable;

         (c) default in the observance or performance of any covenant or
agreement of the Issuer made in this Indenture (other than a covenant or
agreement, a default in the observance or

                                       26
<PAGE>

performance of which is elsewhere in this Section specifically dealt with) which
shall continue or not be cured for a period of 90 days after there shall have
been given, by registered or certified mail, to the Issuer by the Indenture
Trustee or to the Issuer and the Indenture Trustee by the Holders of at least
25% of the Outstanding Amount of the Notes, acting together as a single class, a
written notice specifying such default or incorrect representation or warranty
and requiring it to be remedied and stating that such notice is a notice of
Default hereunder;

         (d) any representation or warranty of the Issuer made in this Indenture
or in any certificate or other writing delivered pursuant hereto or in
connection herewith shall prove to have been incorrect in any material respect
as of the time when the same shall have been made, and such default shall
continue or not be cured, or the circumstance or condition in respect of which
such misrepresentation or warranty was incorrect shall not have been eliminated
or otherwise cured, for a period of 30 days after there shall have been given,
by registered or certified mail, to the Issuer by the Indenture Trustee or to
the Issuer and the Indenture Trustee by the Holders of at least 25% of the
Outstanding Amount of the Notes, acting together as a single Class, a written
notice specifying such default or incorrect representation or warranty and
requiring it to be remedied and stating that such notice is a notice of Default
hereunder;

         (e) the filing of a petition seeking entry of a decree or order for
relief by a court having jurisdiction in the premises in respect of the Issuer
or any substantial part of the Trust Estate in an involuntary case under any
applicable federal or state bankruptcy, insolvency or other similar law now or
hereafter in effect, or appointing a receiver, liquidator, assignee, custodian,
trustee, sequestrator or similar official of the Issuer or for any substantial
part of the Trust Estate, or ordering the winding-up or liquidation of the
Issuer's affairs, and such petition shall remain unstayed and in effect for a
period of 90 consecutive days; or

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

         The Issuer shall deliver to the Indenture Trustee, within five Business
Days after the occurrence thereof, written notice in the form of an Officer's
Certificate of any Default that with the giving of notice or the lapse of time
would become an Event of Default under clause (d), stating the status of such
Default and any action the Issuer is taking or proposes to take with respect
thereto.

         SECTION 5.02 Acceleration of Maturity; Rescission and Annulment. If an
Event of Default should occur and be continuing, then and in every such case the
Indenture Trustee or the Holders of a majority of the Outstanding Amount of the
Notes, voting as a single class (excluding for such purposes the outstanding
principal amount of any Notes held of record or beneficially owned by NMAC, NARC
II or any of their Affiliates, unless at such time all of the Notes are held of
record or beneficially owned by NARC II, NMAC or any of their Affiliates)

                                       27
<PAGE>

may declare all the Notes to be immediately due and payable, by a notice in
writing to the Issuer (and to the Indenture Trustee if given by Noteholders),
and upon any such declaration the unpaid principal amount of such Notes,
together with accrued and unpaid interest thereon through the date of
acceleration, shall become immediately due and payable.

         At any time after such declaration of acceleration of maturity has been
made and before a judgment or decree for payment of the money due has been
obtained by the Indenture Trustee as hereinafter in this Article V provided, the
Holders of a majority of the Outstanding Amount of the Notes, voting as a single
class (excluding for such purposes the outstanding principal amount of any Notes
held of record or beneficially owned by NMAC, NARC II or any of their
Affiliates, unless at such time all of the Notes are held of record or
beneficially owned by NARC II, NMAC or any of their Affiliates), by written
notice to the Issuer and the Indenture Trustee, may rescind and annul such
declaration and its consequences if:

         (a) the Issuer has paid or deposited with the Securities Intermediary
in the name of the Indenture Trustee a sum sufficient to pay:

                  (i)      all payments of principal of and interest on the
         Notes and all other amounts that would then be due hereunder or upon
         such Notes if the Event of Default giving rise to such acceleration had
         not occurred; and

                  (ii)     all sums paid or advanced by the Indenture Trustee
         hereunder and the reasonable compensation, expenses, disbursements and
         advances of the Indenture Trustee and its agents and counsel; and

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

         No such rescission shall affect any subsequent default or impair any
right consequent thereto.

         SECTION 5.03 Collection of Indebtedness and Suits for Enforcement by
Indenture Trustee.

         (a) The Issuer covenants that if (i) default is made in the payment of
any interest on any Note, so long as any amounts remain unpaid with respect to
the Notes, when the same becomes due and payable, and such default continues for
a period of five days, or (ii) default is made in the payment of the principal
of or any installment of the principal of any Note when the same becomes due and
payable, the Issuer will, upon demand of the Indenture Trustee, pay to the
Indenture Trustee, for the benefit of the Holders of the Notes, the whole amount
then due and payable on the Notes for principal and interest, with interest upon
the overdue principal and, to the extent payment at such rate of interest shall
be legally enforceable, upon overdue installments of interest at the rate borne
by the Notes and in addition thereto such further amount as shall be sufficient
to cover the costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Indenture Trustee and
its agents and counsel.

         (b) In case the Issuer shall fail forthwith to pay such amounts upon
such demand, the Indenture Trustee, in its own name and as trustee of an express
trust, may institute a Proceeding

                                       28
<PAGE>

for the collection of the sums so due and unpaid, and may prosecute such
Proceeding to judgment or final decree, and may enforce the same against the
Issuer or other obligor upon such Notes and collect in the manner provided by
law out of the property of the Issuer or other obligor upon such Notes, wherever
situated, the moneys adjudged or decreed to be payable.

         (c) If an Event of Default occurs and is continuing, the Indenture
Trustee may, as more particularly provided in Section 5.04, in its discretion,
proceed to protect and enforce its rights and the rights of the Noteholders and,
incidentally thereto, the Certificateholders, by such appropriate Proceedings as
the Indenture Trustee shall deem most effective to protect and enforce any such
rights, whether for the specific enforcement of any covenant or agreement in
this Indenture or in aid of the exercise of any power granted herein, or to
enforce any other proper remedy or legal or equitable right vested in the
Indenture Trustee by this Indenture or by law.

         (d) In case there shall be pending, relative to the Issuer or any other
obligor upon the Notes or any Person having or claiming an ownership interest in
the Trust Estate, Proceedings under Title 11 of the United States Code or any
other applicable federal or state bankruptcy, insolvency or other similar law,
or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Issuer or its property or such other obligor or Person,
or in case of any other comparable judicial Proceedings relative to the Issuer
or other obligor upon the Notes, or to the creditors or property of the Issuer
or such other obligor, then, irrespective of whether the principal of any Notes
shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Indenture Trustee shall have made any
demand pursuant to the provisions of this Section, the Indenture Trustee shall
be entitled and empowered, by intervention in such Proceedings or otherwise:

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

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

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

                  (iv)     to file such proofs of claim and other papers or
         documents as may be necessary or advisable in order to have the claims
         of the Indenture Trustee or the Holders

                                       29
<PAGE>

         of Notes allowed in any judicial proceedings relative to the Issuer,
         its creditors and its property.

         Any trustee, receiver, liquidator, custodian or other similar official
in any such Proceeding is hereby authorized by each of such Noteholders to make
payments to the Indenture Trustee and, in the event that the Indenture Trustee
shall consent to the making of payments directly to such Noteholders, to pay to
the Indenture Trustee such amounts as shall be sufficient to cover reasonable
compensation to the Indenture Trustee, each predecessor Indenture Trustee and
their respective agents, attorneys and counsel, and all other expenses and
liabilities incurred, and all advances made, by the Indenture Trustee and each
predecessor Indenture Trustee except as a result of negligence or bad faith.

         (e) Nothing herein contained shall be deemed to authorize the Indenture
Trustee to authorize or consent to or vote for or accept or adopt on behalf of
any Noteholder any plan of reorganization, arrangement, adjustment or
composition affecting the Notes or the rights of any Holder thereof or to
authorize the Indenture Trustee to vote in respect of the claim of any
Noteholder in any such proceeding except, as aforesaid, to vote for the election
of a trustee in bankruptcy or similar Person.

         (f) All rights of action and of asserting claims under this Indenture,
or under any of the Notes, may be enforced by the Indenture Trustee without the
possession of any of the Notes or the production thereof in any trial or other
Proceedings relative thereto, and any such action or Proceedings instituted by
the Indenture Trustee shall be brought in its own name as trustee of an express
trust, and any recovery of judgment, subject to the payment of the expenses,
disbursements and compensation of the Indenture Trustee, each predecessor
Indenture Trustee and their respective agents and attorneys, shall be for the
ratable benefit of the Holders of the Notes.

         (g) In any Proceedings brought by the Indenture Trustee (and also any
Proceedings involving the interpretation of any provision of this Indenture to
which the Indenture Trustee shall be a party), the Indenture Trustee shall be
held to represent all the Noteholders, and it shall not be necessary to make any
Noteholder a party to any such Proceedings.

         SECTION 5.04 Remedies; Priorities.

         (a) If an Event of Default shall have occurred and be continuing and
result in the acceleration of the Notes, the Indenture Trustee shall make
payments on the Notes and to the Owner Trustee as set forth in Section 5.06(d)
of the Sale and Servicing Agreement, rather than pursuant to Section 5.06(c)
thereof.

         (b) If the Indenture Trustee, in compliance with Section 5.04(a), is
deemed to have a conflict of interest under the TIA and is required to resign as
Indenture Trustee hereunder, the Issuer shall, pursuant to Section 6.08, cause
the Servicer to appoint a successor Indenture Trustee.

         (c) In accordance with Section 5.04(b), if an Event of Default shall
have occurred and be continuing, the Indenture Trustee may do one or more of the
following (subject to Section 5.05):

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<PAGE>

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

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

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

                  (iv)     sell the Trust Estate or any portion thereof or
         rights or interest therein, at one or more public or private sales
         called and conducted in any manner permitted by law; provided, however,
         that the Indenture Trustee may not sell or otherwise liquidate the
         Trust Estate following an Event of Default, other than an Event of
         Default described in Section 5.01(a) or (b), unless (A) the Holders of
         100% of the Outstanding Amount of the Notes, voting as a single class,
         consent thereto (but excluding for purposes of such vote all Notes held
         or beneficially owned by NMAC, NARC II or any of their Affiliates,
         unless at such time all of the Notes are held or beneficially owned by
         NMAC, NARC II and their Affiliates), or (B) the proceeds of such sale
         or liquidation distributable to the Noteholders are sufficient to
         discharge in full all amounts then due and unpaid upon the Notes for
         principal and interest, or (C) the Indenture Trustee determines that
         the Trust Estate may not continue to provide sufficient funds on an
         ongoing basis to make all payments of principal of and interest on the
         Notes as they would have become due if the Notes had not been declared
         due and payable, and the Indenture Trustee obtains the consent of
         Holders of a 66 2/3% of the Outstanding Amount of the Notes, voting as
         a single class (but excluding for purposes of such vote all Notes held
         or beneficially owned by NMAC, NARC II or any of their Affiliates,
         unless at such time all of the Notes are held or beneficially owned by
         NMAC, NARC II and their Affiliates). In determining such sufficiency or
         insufficiency with respect to clause (B) and (C), the Indenture Trustee
         may, but need not, obtain and rely upon an opinion of an Independent
         investment banking or accounting firm of national reputation as to the
         feasibility of such proposed action and as to the sufficiency of the
         Trust Estate for such purpose.

         (d) The Indenture Trustee may fix a record date and payment date for
any payment to Noteholders pursuant to this Section. At least 15 days before
such record date, the Issuer shall mail to each Noteholder and the Indenture
Trustee a notice that states the related record date, payment date and amount to
be paid.

         SECTION 5.05 Optional Preservation of the Receivables. If the Notes
have been declared to be due and payable under Section 5.02 following an Event
of Default and such declaration and its consequences have not been rescinded and
annulled, the Indenture Trustee may, unless otherwise directed by the Holders of
at least a majority of the Outstanding Amount of the Notes, voting as a single
class (excluding from such action and calculation any Notes held by NMAC, NARC
II or any of their Affiliates, unless at such time all of the Notes are held of
record or beneficially owned by NARC II, NMAC or any of their Affiliates), but
need not, elect

                                       31
<PAGE>

to maintain possession of the Trust Estate and direct the Issuer, Servicer and
Administrator not to take steps to liquidate the Receivables. It is the desire
of the parties hereto and the Noteholders that there be at all times sufficient
funds for the payment of principal of and interest on the Notes, and the
Indenture Trustee shall take such desire into account when determining whether
or not to maintain possession of the Trust Estate. In determining whether to
maintain possession of the Trust Estate, the Indenture Trustee may, but need
not, obtain and rely upon an opinion of an Independent investment banking or
accounting firm of national reputation as to the feasibility of such proposed
action and as to the sufficiency of the Trust Estate for such purpose.

         SECTION 5.06 Limitation of Suits. No Holder of any Note shall have any
right to institute any Proceeding, judicial or otherwise, with respect to this
Indenture or for the appointment of a receiver or trustee, or for any other
remedy hereunder unless such Holder has previously given written notice to the
Indenture Trustee of a continuing Event of Default, and:

         (a) the Event of Default arises from the Servicer's failure to remit
payments when due; or

         (b) the Holders of not less than 25% of the Outstanding Amount of the
Notes, voting as a single class (excluding for such purpose the outstanding
principal amount of any Notes held of record or beneficially owned by NARC II,
NMAC or any of their Affiliates, unless at such time all of the Notes are held
of record or beneficially owned by NARC II, NMAC or any of their Affiliates)
have made written request to the Indenture Trustee to institute such Proceeding
in respect of such Event of Default in its own name as Indenture Trustee
hereunder and have offered to the Indenture Trustee reasonable indemnity against
the costs, expenses and liabilities to be incurred in complying with such
request, the Indenture Trustee for 60 days after its receipt of such notice,
request and offer of indemnity has failed to institute such Proceedings, and no
direction inconsistent with that written request has been given to the Indenture
Trustee during the 60-day period by the holders of a majority in principal
amount of those outstanding Notes (or relevant class or classes of Notes).

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

         In the event the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Holders of Notes,
each representing less than a majority of the Outstanding Amount of the Notes,
the Indenture Trustee in its sole discretion may determine what action, if any,
shall be taken, notwithstanding any other provisions of this Indenture.

         SECTION 5.07 Unconditional Rights of Noteholders To Receive Principal
and Interest. Notwithstanding any other provisions in this Indenture, the Holder
of any Note shall have the right, which is absolute and unconditional, to
receive payment of the principal of and interest, if any, on such Note on or
after the respective due dates thereof expressed in such Note and in this
Indenture (in each case with reference to the calculations to be made pursuant
to the

                                       32
<PAGE>

Sale and Servicing Agreement) and to institute suit for the enforcement of any
such payment, and such right shall not be impaired without the consent of such
Holder.

         SECTION 5.08 Restoration of Rights and Remedies. If the Indenture
Trustee or any Noteholder has instituted any Proceeding to enforce any right or
remedy under this Indenture and such Proceeding has been discontinued or
abandoned for any reason or has been determined adversely to the Indenture
Trustee or to such Noteholder, then and in every such case the Issuer, the
Indenture Trustee and the Noteholders shall, subject to any determination in
such Proceeding, be restored severally and respectively to their former
positions hereunder, and thereafter all rights and remedies of the Indenture
Trustee and the Noteholders shall continue as though no such Proceeding had been
instituted.

         SECTION 5.09 Rights and Remedies Cumulative. No right or remedy herein
conferred upon or reserved to the Indenture Trustee or to the Noteholders is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law
or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

         SECTION 5.10 Delay or Omission Not a Waiver. No delay or omission of
the Indenture Trustee or any Holder of any Note to exercise any right or remedy
accruing upon any Default or Event of Default shall impair any such right or
remedy or constitute a waiver of any such Default or Event of Default or an
acquiescence therein. Every right and remedy given by this Article V or by law
to the Indenture Trustee or to the Noteholders may be exercised from time to
time, and as often as may be deemed expedient, by the Indenture Trustee or by
the Noteholders, as the case may be.

         SECTION 5.11 Control by Noteholders. The Holders of a majority of the
Outstanding Amount of the Notes, voting as a single class (excluding for such
purpose the outstanding principal amount of any Notes held of record or
beneficially owned by NARC II, NMAC or any of their Affiliates, unless at such
time all of the Notes are held of record or beneficially owned by NARC II, NMAC
or any of their Affiliates), shall have the right to direct the time, method and
place of conducting any Proceeding for any remedy available to the Indenture
Trustee with respect to the Notes or exercising any trust or power conferred on
the Indenture Trustee; provided that:

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

         (b) any direction to the Indenture Trustee to sell or liquidate the
Trust Estate shall be by Holders of Notes representing not less than the
applicable percentage of the Outstanding Amount of the Notes set forth in
Section 5.04(c)(iv); and

         (c) the Indenture Trustee may take any other action deemed proper by
the Indenture Trustee that is not inconsistent with such direction.

                                       33
<PAGE>

         Notwithstanding the rights of Noteholders set forth in this Section,
subject to Section 6.01, the Indenture Trustee need not take any action that it
determines might involve it in liability or might materially adversely affect
the rights of any Noteholders not consenting to such action.

         SECTION 5.12 Waiver of Past Defaults. Prior to the declaration of the
acceleration of the maturity of the Notes as provided in Section 5.02 or the
liquidation or sale of the Trust Estate pursuant to Section 5.04, the Holders of
a majority of the Outstanding Amount of the Notes, voting as a single class
(excluding for such purposes the outstanding principal amount of any Notes held
of record or beneficially owned by NMAC, NARC II or any of their Affiliates,
unless at such time all of the Notes are held of record or beneficially owned by
NARC II, NMAC or any of their Affiliates) may waive any past Default or Event of
Default and its consequences except a Default or Event of Default in (a) the
deposit of collections or other required amounts, (b) any required payment from
amounts held in Accounts in respect of amounts due on the Notes, (c) payment of
principal or interest on the Notes, or (d) an Event of Default in respect of a
covenant or provision hereof that cannot be modified or amended without the
consent of the Holder of each Note. In the case of any such waiver, the Issuer,
the Indenture Trustee and the Holders of the Notes shall be restored to their
former positions and rights hereunder, respectively.

         Upon any such waiver, such Default shall cease to exist and be deemed
to have been cured and not to have occurred, and any Event of Default arising
therefrom shall be deemed to have been cured and not to have occurred, for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or
other Default or Event of Default or impair any right consequent thereto.

         SECTION 5.13 Undertaking for Costs. All parties to this Indenture
agree, and each Holder of any Note or Note Owner by such Holder's acceptance of
such Note or beneficial interest therein, as the case may be, shall be deemed to
have agreed, that any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Indenture, or in any suit against
the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to (a) any suit instituted by the
Indenture Trustee, (b) any suit instituted by any Noteholder, or a group of
Noteholders, in each case holding in the aggregate more than 10% of the
Outstanding Amount of the Notes, (c) any suit instituted by any Noteholder for
the enforcement of the payment of principal of or interest on any Note on or
after the respective due dates expressed in such Note and in this Indenture.

         SECTION 5.14 Waiver of Stay or Extension Laws. The Issuer covenants (to
the extent that it may lawfully do so) that it will not at any time insist upon,
or plead or in any manner whatsoever, claim or take the benefit or advantage of,
any stay or extension law wherever enacted, now or at any time hereafter in
force, that may affect the covenants or the performance of this Indenture; and
the Issuer (to the extent that it may lawfully do so) hereby expressly waives
all benefit or advantage of any such law, and covenants that it will not hinder,

                                       34
<PAGE>

delay or impede the execution of any power herein granted to the Indenture
Trustee, but will suffer and permit the execution of every such power as though
no such law had been enacted.

         SECTION 5.15 Action on Notes. The Indenture Trustee's right to seek and
recover judgment on the Notes or under this Indenture shall not be affected by
the seeking, obtaining or application of any other relief under or with respect
to this Indenture. Neither the lien of this Indenture nor any rights or remedies
of the Indenture Trustee or the Noteholders shall be impaired by the recovery of
any judgment by the Indenture Trustee against the Issuer or by the levy of any
execution under such judgment upon any portion of the Trust Estate or upon any
of the assets of the Issuer. Any money or property collected by the Indenture
Trustee shall be applied in accordance with Section 5.04(a).

         SECTION 5.16 Performance and Enforcement of Certain Obligations.

         (a) Promptly following a request from the Indenture Trustee to do so
and at the Administrator's expense, the Issuer shall take all such lawful action
as the Indenture Trustee may request to compel or secure the performance and
observance by the Seller and the Servicer, as applicable, of each of their
obligations to the Issuer or to each other under or in connection with the Sale
and Servicing Agreement or by the Seller of its remedies under or in connection
with the Purchase Agreement, and to exercise any and all rights, remedies,
powers and privileges lawfully available to the Issuer under or in connection
with the Sale and Servicing Agreement or the Purchase Agreement to the extent
and in the manner directed by the Indenture Trustee, including the transmission
of notices of default on the part of the Seller or the Servicer thereunder and
the institution of legal or administrative actions or proceedings to compel or
secure performance by the Seller or the Servicer of each of their respective
obligations under the Sale and Servicing Agreement or the Purchase Agreement.

         (b) If an Event of Default has occurred and is continuing, the
Indenture Trustee may, and at the direction (which direction shall be in writing
or by telephone, confirmed in writing promptly thereafter) of the Holders of a
majority of the Outstanding Amount of the Notes, voting as a single class
(excluding for such purposes the outstanding principal amount of any Notes held
of record or beneficially owned by NMAC, NARC II or any of their Affiliates,
unless at such time all of the Notes are held of record or beneficially owned by
NARC II, NMAC or any of their Affiliates), shall, exercise all rights, remedies,
powers, privileges and claims of the Issuer against the Seller or the Servicer
under or in connection with the Sale and Servicing Agreement or the Purchase
Agreement, or against the Administrator under the Administration Agreement,
including the right or power to take any action to compel or secure performance
or observance by the Seller, the Servicer or the Administrator, of each of their
obligations to the Issuer thereunder and to give any consent, request, notice,
direction, approval, extension, or waiver thereunder and any right of the Issuer
to take such action shall be suspended.

                                   ARTICLE VI
                              The Indenture Trustee

         SECTION 6.01 Duties of Indenture Trustee. The Indenture Trustee, both
prior to and after the occurrence of a Servicer Default under the Sale and
Servicing Agreement,

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<PAGE>

undertakes to perform such duties and only such duties as are specifically set
forth in this Indenture.

         (a) The Indenture Trustee, upon receipt of all resolutions,
certificates, statements, opinions, reports, documents, orders or other
instruments furnished to the Indenture Trustee that shall be specifically
required to be furnished pursuant to any provision of this Indenture, shall
examine them to determine whether they conform on their face to the requirements
of this Indenture.

         (b) No provision of this Indenture shall be construed to relieve the
Indenture Trustee from liability for its own negligent action, its own negligent
failure to act, its own bad faith or its own willful misfeasance; provided,
however, that:

                  (i)      the duties and obligations of the Indenture Trustee
         shall be determined solely by the express provisions of this Indenture,
         the Indenture Trustee shall not be liable except for the performance of
         such duties and obligations as are specifically set forth in this
         Indenture, no implied covenants or obligations shall be read into this
         Indenture against the Indenture Trustee, the permissive right of the
         Indenture Trustee to do things enumerated in this Indenture shall not
         be construed as a duty and, in the absence of bad faith on the part of
         the Indenture Trustee, the Indenture Trustee may conclusively rely, as
         to the truth of the statements and the correctness of the opinions
         expressed therein, upon any certificates or opinions furnished to the
         Indenture Trustee and conforming on their face to the requirements of
         this Indenture;

                  (ii)     the Indenture Trustee shall not be personally liable
         for an error of judgment made in good faith by a Responsible Officer,
         unless it shall be proved that the Indenture Trustee was negligent in
         performing its duties in accordance with the terms of this Indenture;
         and

                  (iii)    the Indenture Trustee shall not be personally liable
         with respect to any action taken, suffered or omitted to be taken in
         good faith in accordance with the direction of (i) the Holders of at
         least a majority of the Outstanding Amount of the Notes, voting as a
         single class (excluding for such purposes the outstanding principal
         amount of any Notes held of record or beneficially owned by NARC II,
         NMAC or any of their Affiliates, unless at such time all of the Notes
         are held of record or beneficially owned by NARC II, NMAC or any of
         their Affiliates), relating to the time, method and place of conducting
         any proceeding for any remedy available to the Indenture Trustee, or
         exercising any trust or power conferred upon the Indenture Trustee
         under this Indenture.

         (c) The Indenture Trustee shall not be required to expend or risk its
own funds or otherwise incur financial liability in the performance of any of
its duties under this Indenture, or in the exercise of any of its rights or
powers, if there shall be reasonable grounds for believing that the repayment of
such funds or adequate indemnity against such risk or liability is not
reasonably assured to it.

         (d) All information obtained by the Indenture Trustee regarding the
Obligors and the Receivables contained in the Trust, whether upon the exercise
of its rights under this Indenture or

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<PAGE>

otherwise, shall be maintained by the Indenture Trustee in confidence and shall
not be disclosed to any other Person, unless such disclosure is required by any
applicable law or regulation or pursuant to subpoena.

         (e) If (i) pursuant to Section 3.02 of the Sale and Servicing
Agreement, a Responsible Officer of the Indenture Trustee discovers that a
representation or warranty with respect to a Receivable was incorrect as of the
time specified with respect to such representation and warranty and such
incorrectness materially and adversely affects such Receivable, or (ii) pursuant
to Section 4.06 of the Sale and Servicing Agreement, a Responsible Officer of
the Indenture Trustee discovers that a covenant of the Servicer has been
breached with respect to a Receivable that would materially and adversely affect
such Receivable, the Indenture Trustee shall give prompt written notice to the
Servicer and the Owner Trustee of such incorrectness.

         SECTION 6.02 Rights of Indenture Trustee.

         (a) Except as otherwise provided in Section 6.01:

                  (i)      the Indenture Trustee may rely and shall be protected
         in acting or refraining from acting upon any resolution, Officer's
         Certificate, certificate of an authorized signatory, certificate of
         auditors or any other certificate, statement, instrument, opinion,
         report, notice, request, consent, order, appraisal, bond or other paper
         or document believed by it to be genuine and to have been signed or
         presented by the proper party or parties;

                  (ii)     the Indenture Trustee may consult with counsel and
         any Opinion of Counsel shall be full and complete authorization and
         protection in respect of any action taken or suffered or omitted by it
         under this Indenture in good faith and in accordance with such Opinion
         of Counsel;

                  (iii)    the Indenture Trustee shall be under no obligation to
         exercise any of the rights or powers vested in it by this Indenture or
         the Sale and Servicing Agreement, or to institute, conduct or defend
         any litigation under this Indenture, or in relation to this Indenture
         or the Sale and Servicing Agreement, at the request, order or direction
         of any of the Noteholders pursuant to the provisions of this Indenture
         or the Sale and Servicing Agreement, unless such Noteholders shall have
         offered to the Indenture Trustee reasonable security or indemnity
         against the costs, expenses and liabilities that may be incurred
         therein or thereby;

                  (iv)     the Indenture Trustee shall not be personally liable
         for any action taken, suffered or omitted by it in good faith and
         reasonably believed by it to be authorized or within the discretion or
         rights or powers conferred upon it by this Indenture;

                  (v)      the Indenture Trustee shall not be bound to
         recalculate, reverify, or make any investigation into the facts of
         matters stated in any resolution, certificate, statement, instrument,
         opinion, report, notice, request, consent, order, approval, bond or
         other paper or document, unless requested in writing to do so by
         Holders of Notes evidencing not less than 25% of the aggregate
         Outstanding Amount of the Notes; provided, however, that if the payment
         within a reasonable time to the Indenture Trustee of the costs,
         expenses or

                                       37
<PAGE>

         liabilities likely to be incurred by it in the making of such
         investigation is, in the opinion of the Indenture Trustee, not
         reasonably assured to the Indenture Trustee by the security afforded to
         it by the terms of this Indenture, the Indenture Trustee may require
         reasonable indemnity against such cost, expense or liability as a
         condition to so proceeding; the reasonable expense of every such
         examination shall be paid by the Administrator or, if paid by the
         Indenture Trustee, shall be reimbursed by the Administrator upon
         demand; and nothing in this clause shall derogate from the obligation
         of the Servicer to observe any applicable law prohibiting disclosure of
         information regarding the Obligors; and

                  (vi)     the Indenture Trustee may execute any of the trusts
         or powers under this Indenture or perform any duties under this
         Indenture either directly or by or through agents or attorneys or a
         custodian.

         (b) No Noteholder will have any right to institute any proceeding with
respect to this Indenture except upon satisfying the conditions set forth in
Section 5.06.

         SECTION 6.03 Individual Rights of Indenture Trustee. The Indenture
Trustee in its individual or any other capacity may become the Holder,
beneficial owner or pledgee of Notes and may otherwise deal with the Issuer or
its Affiliates with the same rights it would have if it were not Indenture
Trustee. Any Paying Agent, Note Registrar, co-registrar or co-paying agent may
do the same with like rights. However, in so doing the Indenture Trustee must
comply with Sections 6.11 and 6.12.

         SECTION 6.04 Indenture Trustee's Disclaimer. The Indenture Trustee
makes no representations as to the validity or sufficiency of this Indenture or
of the Notes (other than the execution by the Indenture Trustee on behalf of the
Trust of, and the certificate of authentication on, the Notes), or of the
Certificates. The Indenture Trustee shall have no obligation to perform any of
the duties of the Servicer or the Administrator unless explicitly set forth in
this Indenture. The Indenture Trustee shall at no time have any responsibility
or liability for or with respect to the legality, validity and enforceability of
the Notes or any Receivable, any ownership interest in any Financed Vehicle, or
the maintenance of any such ownership interest, or for or with respect to the
efficacy of the Trust or its ability to generate the payments to be distributed
to Noteholders under this Indenture, including without limitation the validity
of the assignment of the Receivables to the Trust or of any intervening
assignment; the existence, condition, location and ownership of any Receivable
or Financed Vehicle; the existence and enforceability of any physical damage or
credit life or credit disability insurance; the existence and contents of any
retail installment sales contract or any computer or other record thereof; the
completeness of any retail installment sales contract; the performance or
enforcement of any retail installment sales contract; the compliance by the
Issuer with any covenant or the breach by the Issuer, Seller or Servicer of any
warranty or representation made under this Indenture or in any Basic Document or
other related document and the accuracy of any such warranty or representation
prior to the Indenture Trustee's receipt of notice or other discovery of any
noncompliance therewith or any breach thereof; the acts or omissions of the
Issuer, Seller or the Servicer; or any action by the Indenture Trustee taken at
the instruction of the Servicer, provided, however, that the foregoing shall not
relieve the Indenture Trustee of its obligation to perform its duties under this
Indenture. Except with respect to a claim based on the failure of the Indenture
Trustee to perform its duties under this Indenture or based on the Indenture
Trustee's willful misconduct, bad faith or

                                       38
<PAGE>

negligence, no recourse shall be had for any claim based on any provision of
this Indenture, the Notes or Certificates or assignment thereof against the
institution serving as the Indenture Trustee in its individual capacity. The
Indenture Trustee shall not have any personal obligation, liability or duty
whatsoever to any Noteholder or any other Person with respect to any such claim,
and any such claim shall be asserted solely against the Trust or any indemnitor
who shall furnish indemnity as provided in this Indenture. The Indenture Trustee
shall not be accountable for the use or application by the Issuer of any of the
Notes or of the proceeds of such Notes, or for the use or application of any
funds paid to the Servicer in respect of the Notes.

         SECTION 6.05 Notice of Defaults. If a Responsible Officer of the
Indenture Trustee knows that a Default has occurred and is continuing, the
Indenture Trustee shall mail to each Noteholder notice of such Default within 10
days of the occurrence thereof. Except in the case of a Default in payment of
principal of or interest on any Note, the Indenture Trustee may withhold such
notice if and so long as a committee of its Responsible Officers in good faith
determines that withholding the notice is in the interests of Noteholders.

         SECTION 6.06 Reports by Indenture Trustee to Holders. The Indenture
Trustee shall deliver or cause to be delivered annually to each Noteholder of
record such information as may be required to enable such holder to prepare its
federal and state income tax returns. The Indenture Trustee shall also deliver
or cause to be delivered annually to each Noteholder of record a report relating
to its eligibility and qualification to continue as Indenture Trustee under this
Indenture, any amounts advanced by it under this Indenture, the amount, interest
rate and maturity date of certain indebtedness owed by the Trust to such
Indenture Trustee, in its individual capacity, the property and funds physically
held by such Indenture Trustee in its capacity as such, and any action taken by
it that materially affects the Notes and that has not been previously reported.

         SECTION 6.07 Compensation and Indemnity. The Issuer shall cause the
Servicer to pay to the Indenture Trustee from time to time reasonable
compensation for its services. The Indenture Trustee's compensation shall not be
limited by any law on compensation of a trustee of an express trust. The Issuer
shall cause the Servicer to reimburse the Indenture Trustee for all reasonable
out-of-pocket expenses incurred or made by it, including costs of collection and
the costs of implementing any Swap Agreement as contemplated by Section 9.02, in
addition to the compensation for its services. Such expenses shall include the
reasonable compensation and expenses, disbursements and advances of the
Indenture Trustee's agents, counsel, accountants and experts. The Administrator
shall indemnify or shall cause the Servicer to indemnify the Indenture Trustee
against any and all loss, liability or expense (including reasonable attorneys'
fees) incurred by it in connection with the administration of this trust and the
performance of its duties hereunder. The Indenture Trustee shall notify the
Administrator and the Servicer promptly of any claim for which it may seek
indemnity. Failure by the Indenture Trustee to so notify the Administrator and
the Servicer shall not relieve the Administrator or the Servicer of its
obligations hereunder. The Administrator shall defend or shall cause the
Servicer to defend any such claim, and the Indenture Trustee may have separate
counsel and the Administrator shall pay or shall cause the Servicer to pay the
fees and expenses of such counsel. Neither the Administrator nor the Servicer
need reimburse any expense or indemnify against any loss, liability or expense
incurred by the Indenture Trustee through the Indenture Trustee's own willful
misconduct, negligence or bad faith.

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<PAGE>

         The Administrator's payment obligations to the Indenture Trustee
pursuant to this Section shall survive the discharge of this Indenture. When the
Indenture Trustee incurs expenses after the occurrence of a Default specified in
Section 5.01(f) or (g) with respect to the Issuer, the expenses are intended to
constitute expenses of administration under Title 11 of the United States Code
or any other applicable federal or state bankruptcy, insolvency or similar law.

         SECTION 6.08 Replacement of Indenture Trustee. The Indenture Trustee
may resign at any time by providing written notice of its resignation to the
Issuer. The Administrator may remove the Indenture Trustee if:

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

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

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

         (d) the Indenture Trustee otherwise becomes legally or practically
incapable of fulfilling its duties hereunder.

         If the Indenture Trustee resigns or is removed or if a vacancy exists
in the office of Indenture Trustee for any reason (the Indenture Trustee in such
event being referred to herein as the retiring Indenture Trustee), the Servicer
shall promptly appoint a successor Indenture Trustee. No resignation or removal
of the Indenture Trustee and no appointment of a successor Indenture Trustee
shall become effective until the acceptance of appointment by the successor
Indenture Trustee pursuant to this Section 6.08.

         A successor Indenture Trustee shall deliver a written acceptance of its
appointment to the retiring Indenture Trustee, to the Servicer and to the
Administrator. Thereupon the resignation or removal of the retiring Indenture
Trustee shall become effective, and the successor Indenture Trustee shall have
all the rights, powers and duties of the Indenture Trustee under this Indenture.
The successor Indenture Trustee shall mail a notice of its succession to
Noteholders. The retiring Indenture Trustee shall promptly transfer all property
held by it as Indenture Trustee to the successor Indenture Trustee.

         If a successor Indenture Trustee does not take office within 30 days
after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture Trustee, the Administrator or the Holders of a majority in Outstanding
Amount of the Notes may petition any court of competent jurisdiction for the
appointment of a successor Indenture Trustee.

         If the Indenture Trustee fails to comply with Section 6.11, any
Noteholder may at any time thereafter petition any court of competent
jurisdiction for the removal of the Indenture Trustee and the appointment of a
successor Indenture Trustee.

         Notwithstanding the replacement of the Indenture Trustee pursuant to
this Section, the Issuer's and the Administrator's obligations under Section
6.07 shall continue for the benefit of the retiring Indenture Trustee.

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<PAGE>

         SECTION 6.09 Successor Indenture Trustee by Merger. If the Indenture
Trustee consolidates with, merges or converts into, or transfers all or
substantially all its corporate trust business or assets to, another Person, the
resulting, surviving or transferee corporation without any further act shall be
the successor Indenture Trustee if such surviving Person or transferee
corporation or banking shall be otherwise qualified and eligible under Section
6.11. The Indenture Trustee shall provide the Issuer, the Servicer and the
Rating Agencies reasonable prior written notice of any such transaction.

         In case at the time such successor or successors by merger, conversion
or consolidation to the Indenture Trustee shall succeed to the trusts created by
this Indenture any of the Notes shall have been authenticated but not delivered,
any such successor to the Indenture Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Notes so
authenticated; and in case at that time any of the Notes shall not have been
authenticated, any successor to the Indenture Trustee may authenticate such
Notes either in the name of any predecessor hereunder or in the name of the
successor to the Indenture Trustee; and in all such cases such certificates
shall have the full force which it is anywhere in the Notes or in this Indenture
provided that the certificate of the Indenture Trustee shall have.

         SECTION 6.10 Appointment of Co-Indenture Trustee or Separate Indenture
Trustee.

         (a) Notwithstanding any other provisions of this Indenture, at any
time, for the purpose of meeting any legal requirement of any jurisdiction in
which any part of the Trust Estate may at the time be located or for the purpose
of implementing any Swap Agreement as contemplated by Section 9.02, the
Indenture Trustee shall have the power and may execute and deliver all
instruments to appoint one or more Persons to act as a co-trustee or
co-trustees, or separate trustee or separate trustees, of all or any part of the
Trust, and to vest in such Person or Persons, in such capacity and for the
benefit of the Noteholders, such title to the Trust Estate, or any part hereof,
and, subject to the other provisions of this Section, such powers, duties,
obligations, rights and trusts as the Indenture Trustee may consider necessary
or desirable. No co-trustee or separate trustee hereunder shall be required to
meet the terms of eligibility as a trustee under Section 6.11 and no notice to
Noteholders of the appointment of any co-trustee or separate trustee shall be
required under Section 6.08 hereof.

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

                  (i)      all rights, powers, duties and obligations conferred
         or imposed upon such separate trustee or co-trustee shall be conferred
         or imposed upon and exercised or performed by the Indenture Trustee and
         such separate trustee or co-trustee jointly (it being understood that
         such separate trustee or co-trustee is not authorized to act separately
         without the Indenture Trustee joining in and/or directing 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 Indenture Trustee
         shall be incompetent or unqualified to perform such act or acts, in
         which event such rights, powers, duties and obligations (including the
         holding of title to the Trust Estate or any portion thereof in any such
         jurisdiction) shall be

                                       41
<PAGE>

         exercised and performed singly by such separate trustee or co-trustee,
         but solely at the direction of the Indenture Trustee;

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

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

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

         (d) Any separate trustee or co-trustee may at any time constitute the
Indenture Trustee, 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 Indenture Trustee, to the extent permitted by law, without the
appointment of a new or successor trustee.

         SECTION 6.11 Eligibility; Disqualification. The Indenture Trustee shall
at all times satisfy the requirements of TIA Section 310(a). The Indenture
Trustee shall have a combined capital and surplus of at least $50,000,000 as set
forth in its most recent published annual report of condition and it or its
parent shall have a long-term debt rating of "Baa3" or better by Moody's or
shall otherwise be acceptable to Moody's. The Indenture Trustee shall comply
with TIA Section 310(b), including the optional provision permitted by the
second sentence of TIA Section 310(b)(9); provided, however, that there shall be
excluded from the operation of TIA Section 310(b)(1) any indenture or indentures
under which other securities of the Issuer are outstanding if the requirements
for such exclusion set forth in TIA Section 310(b)(1) are met.

         SECTION 6.12 Preferential Collection of Claims Against Issuer. The
Indenture Trustee shall comply with TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). An Indenture Trustee who has resigned
or been removed shall be subject to TIA Section 311(a) to the extent indicated.

         SECTION 6.13 Acknowledgement by Indenture Trustee of its Obligations
Under the Sale and Servicing Agreement. The Indenture Trustee hereby agrees and
consents to the provisions of the Sale and Servicing Agreement applicable to it
(including, without limitation, Sections 5.06, 5.07, 5.09 thereof) and agrees to
be bound by such provisions.

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<PAGE>

                                   ARTICLE VII
                         Noteholders' Lists and Reports

         SECTION 7.01 Note Registrar To Furnish Names and Addresses of
Noteholders. The Note Registrar shall furnish or cause to be furnished to the
Indenture Trustee, the Owner Trustee, the Servicer or the Administrator, within
15 days after receipt by the Note Registrar of a written request therefrom, a
list of the names and addresses of the Noteholders of any Class as of the most
recent Record Date. If three or more Noteholders, or one or more Holders
evidencing not less than 25% of the Outstanding Amount of the Notes (hereinafter
referred to as "Applicants"), apply in writing to the Indenture Trustee, and
such application states that the Applicants desire to communicate with other
Noteholders with respect to their rights under this Indenture or under the Notes
and such application is accompanied by a copy of the communication that such
Applicants propose to transmit, then the Indenture Trustee shall, within five
Business Days after the receipt of such application, afford such Applicants
access, during normal business hours, to the current list of Noteholders. Such
Indenture Trustee may elect not to afford the requesting Noteholders access to
the list of Noteholders if it agrees to mail the desired communication by proxy,
on behalf of and at the expense of the requesting Noteholders, to all
Noteholders. Every Noteholder, by receiving and holding a Note, agrees with the
Indenture Trustee and the Issuer that none of the Indenture Trustee, the Owner
Trustee, the Issuer, the Servicer or the Administrator shall be held accountable
by reason of the disclosure of any such information as to the names and
addresses of the Noteholders under this Indenture, regardless of the source from
which such information was derived.

         If the Indenture Trustee shall cease to be the Note Registrar, then
thereafter the Administrator will furnish or cause to be furnished to the
Indenture Trustee not more than five days after the most recent Record Date or
at such other times as the Indenture Trustee reasonably may request in writing,
a list, in such form as the Indenture Trustee reasonably may require, of the
names and addresses of the Holders of Notes as of such Record Date.

         SECTION 7.02 Preservation of Information; Communications to
Noteholders.

         (a) The Indenture Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of the Holders of Notes
contained in the most recent list furnished to the Indenture Trustee as provided
in Section 7.01 and the names and addresses of Holders of Notes received by the
Indenture Trustee in its capacity as Note Registrar. The Indenture Trustee may
destroy any list furnished to it as provided in such Section 7.01 upon receipt
of a new list so furnished.

         (b) Noteholders may communicate pursuant to TIA Section 312(b) with
other Noteholders with respect to their rights under this Indenture or under the
Notes.

         (c) The Issuer, the Indenture Trustee and the Note Registrar shall have
the protection of TIA Section 3.12(c).

         SECTION 7.03 Reports by Issuer.

         (a) The Issuer shall:

                                       43
<PAGE>

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

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

                  (iii)    supply to the Indenture Trustee (and the Indenture
         Trustee shall transmit by mail to all Noteholders described in TIA
         Section 313(c)) such summaries of any information, documents and
         reports required to be filed by the Issuer pursuant to clauses (i) and
         (ii) of this Section 7.03(a) and by rules and regulations prescribed
         from time to time by the Commission.

         (b) Unless the Issuer otherwise determines, the fiscal year of the
Issuer shall end on March 31 of each year, unless the fiscal year of the
Servicer ends on some other date, in which case, the fiscal year of the Issuer
shall be the same as the fiscal year of the Servicer.

         SECTION 7.04 Reports by Indenture Trustee. If required by TIA Section
313(a), within 60 days after the end of each Fiscal Year of the Issuer,
beginning with March 31, 2004, the Indenture Trustee shall mail to each
Noteholder as required by TIA Section 313(c) a brief report dated as of such
date that complies with TIA Section 313(a). The Indenture Trustee also shall
comply with TIA Section 313(b).

         A copy of each report at the time of its mailing to Noteholders shall
be filed by the Indenture Trustee with the Commission and each stock exchange,
if any, on which the Notes are listed. The Issuer shall notify the Indenture
Trustee if and when the Notes are listed on any stock exchange.

         SECTION 7.05 Indenture Trustee Website. The Indenture Trustee may make
available to the Noteholders, via the Indenture Trustee's website, all reports
or notices required to be provided by the Indenture Trustee under the terms of
this Indenture and, with the consent or at the direction of the Servicer, such
other information regarding the Notes as the Indenture Trustee may have in its
possession, but only with the use of a password provided by the Indenture
Trustee. Any information that is disseminated in accordance with the provisions
of this Section 7.05 shall not be required to be disseminated in any other form
or manner. Except for documents prepared by the Indenture Trustee and subject to
its obligations under this Indenture, the Indenture Trustee will make no
representation or warranties as to the accuracy or completeness of such
documents and will assume no responsibility therefor.

                  The Indenture Trustee's internet website shall be initially
located at www.Ctslink.com or at such other address as shall be specified by the
Indenture Trustee from

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<PAGE>

time to time in writing to the parties hereto. In connection with providing
access to the Trustee's internet website, the Indenture Trustee may require
registration and the acceptance of a disclaimer.

                                  ARTICLE VIII
                      Accounts, Disbursements and Releases

         SECTION 8.01 Collection of Money. Except as otherwise expressly
provided herein, the Indenture Trustee may demand payment or delivery of, and
shall receive and collect, directly and without intervention or assistance of
any fiscal agent or other intermediary, all money and other property payable to
or receivable by the Indenture Trustee pursuant to this Indenture. The Indenture
Trustee shall apply all such money received by it as provided in this Indenture.
Except as otherwise expressly provided in this Indenture, if any default occurs
in the making of any payment or performance under any agreement or instrument
that is part of the Trust Estate, the Indenture Trustee may take such action as
may be appropriate to enforce such payment or performance, including the
institution and prosecution of appropriate Proceedings. Any such action shall be
without prejudice to any right to claim a Default or Event of Default under this
Indenture and any right to proceed thereafter as provided in Article V.

         SECTION 8.02 Accounts.

         (a) On or prior to the Closing Date, (i) the Issuer shall cause the
Servicer to establish and maintain, in the name of the Indenture Trustee, for
the benefit of the Noteholders and, to the extent set forth herein, the
Certificateholders, the Collection Account as provided in Section 5.01 of the
Sale and Servicing Agreement and (ii) the Issuer will establish and maintain
with the Securities Intermediary and pledge to the Indenture Trustee for the
benefit of the Noteholders the Yield Supplement Account in the name of the
Indenture Trustee pursuant to the Yield Supplement Agreement as provided in
Section 5.08 of the Sale and Servicing Agreement and the Securities Account
Control Agreement.

         (b) On or prior to the Closing Date, the Issuer will cause the Seller
to, pursuant to the Securities Account Control Agreement, establish and maintain
with the Securities Intermediary in the name of the Indenture Trustee, for the
benefit of the Noteholders, the Reserve Account as provided in Section 5.07 of
the Sale and Servicing Agreement.

         (c) The Indenture Trustee shall transfer all amounts remaining on
deposit in the Collection Account on the Distribution Date on which the Notes of
all Classes have been paid in full (or substantially all of the Trust Estate is
otherwise released from the lien of this Indenture) to the Trust Collection
Account and shall take all necessary or appropriate actions to transfer all of
its right, title and interest in the Collection Account, all funds or
investments held therein and all proceeds thereof, whether or not on behalf of
the Securityholders, to the Owner Trustee for the benefit of the
Certificateholders, subject to the limitations set forth herein with respect to
amounts held for payment to Noteholders that do not promptly deliver a Note for
payment on such Distribution Date.

         (d) The Indenture Trustee shall transfer all amounts remaining on
deposit in the Yield Supplement Account on the Distribution Date on which the
Notes of all Classes have been paid

                                       45
<PAGE>

in full (or substantially all of the Trust Estate is otherwise released from the
lien of this Indenture) to the Owner Trustee for the benefit of the
Certificateholders and shall take all necessary or appropriate actions to
transfer all of its right, title and interest in the Yield Supplement Account,
all funds or investments held therein and all proceeds thereof, whether or not
on behalf of the Securityholders, to the Owner Trustee for the benefit of the
Certificateholders, which amounts the Owner Trustee shall deposit into the Trust
Collection Account, subject to the limitations set forth herein with respect to
amounts held for payment to Noteholders that do not promptly deliver a Note for
payment on such Distribution Date.

         SECTION 8.03 General Provisions Regarding Accounts.

         (a) So long as no Default or Event of Default shall have occurred and
be continuing, all or a portion of the funds in the Collection Account shall be
invested in Eligible Investments and reinvested by the Indenture Trustee at the
written direction of the Servicer, subject to the provisions of Section 5.01 of
the Sale and Servicing Agreement. All income or other gain from investments of
moneys deposited in the Collection Account shall be deposited by the Indenture
Trustee in the Collection Account and paid to the Servicer as servicing
compensation on any Business Day on or after which such amount is deposited in
the Collection Account, and any loss resulting from such investments shall be
charged to such account. The Servicer will not direct the Indenture Trustee, and
the Issuer shall cause the Servicer not, to make any investment of any funds or
to sell any investment held in the Collection Account unless the security
interest Granted and perfected in such account will continue to be perfected in
such investment or the proceeds of such sale, in either case without any further
action by any Person, and, in connection with any direction to the Indenture
Trustee to make any such investment or sale, if requested by the Indenture
Trustee, the Servicer shall deliver to the Indenture Trustee an Opinion of
Counsel, acceptable to the Indenture Trustee, to such effect.

         (b) So long as no Default or Event of Default shall have occurred and
be continuing, all or a portion of the funds in the Reserve Account and the
Yield Supplement Account shall be invested in Eligible Investments and
reinvested by the Indenture Trustee at the written direction of the Servicer,
subject to the provisions of Section 5.07 and Section 5.08, respectively, of the
Sale and Servicing Agreement and the provisions of the Securities Account
Control Agreement. All income or other gain from investments of moneys deposited
in the Reserve Account shall be paid by the Indenture Trustee to the Seller on
any Business Day on or after which such amount is deposited in the Reserve
Account. All income or other gain from investments of moneys deposited in the
Yield Supplement Account shall be deposited into the Collection Account on each
Distribution Date. Subject to the right of the Indenture Trustee to make
withdrawals therefrom, as directed by the Servicer, for the purposes and in the
amounts set forth in Section 5.06 of the Sale and Servicing Agreement, the
Reserve Account and all funds held therein shall be the property of the Seller
and not the property of the Trust, the Owner Trustee or the Indenture Trustee.
The Seller will grant to the Indenture Trustee, for the benefit of the
Noteholders, a security interest in all funds (including Eligible Investments)
in the Reserve Account (including the Reserve Account Initial Deposit) and the
proceeds thereof, and the Issuer will grant to the Indenture Trustee, for the
benefit of the Noteholders, a security interest in all funds (including Eligible
Investments) in the Yield Supplement Account and the proceeds thereof, and the
Indenture Trustee shall have all of the rights of a secured party under the UCC
with respect thereto; provided that all income from the investment of funds in
the Reserve

                                       46
<PAGE>

Account, and the right to receive such income are retained by the Seller and are
not transferred, assigned or otherwise conveyed hereunder; and provided,
further, that amounts on deposit in the Yield Supplement Account in excess of
the Required Yield Supplement Amount will be deposited into the Collection
Account for distribution in accordance with the terms of Section 5.06(c) of the
Sale and Servicing Agreement. The Servicer will not direct the Indenture Trustee
to make any investment of any funds or to sell any investment held in the
Reserve Account or the Yield Supplement Account unless the security interest
granted and perfected in such account will continue to be perfected in such
investment or the proceeds of such sale, in either case without any further
action by any Person, and, in connection with any direction to the Indenture
Trustee to make any such investment or sale, if requested by the Indenture
Trustee, the Servicer shall deliver to the Indenture Trustee an Opinion of
Counsel, acceptable to the Indenture Trustee, to such effect.

         (c) Subject to Section 6.01(c), the Indenture Trustee shall not in any
way be held liable by reason of any insufficiency in the Collection Account, the
Reserve Account or the Yield Supplement Account resulting from any loss on any
Eligible Investment included therein at the direction of the Servicer, except
for losses attributable to the Indenture Trustee's failure to make payments on
such Eligible Investments issued by the Indenture Trustee, in its commercial
capacity as principal obligor and not as trustee, in accordance with the terms
thereof.

         (d) If (i) the Servicer shall have failed to give investment directions
for any funds on deposit in the Collection Account, the Reserve Account or the
Yield Supplement Account, to the Indenture Trustee by 5:00 p.m. Eastern Time (or
such other time as may be agreed by the Servicer and Indenture Trustee) on any
Business Day or (ii) a Default or Event of Default shall have occurred and be
continuing with respect to the Notes but the Notes shall not have been declared
due and payable pursuant to Section 5.02 or (iii) if such Notes shall have been
declared due and payable following an Event of Default, amounts collected or
receivable from the Trust Estate are being applied in accordance with Section
5.05 as if there had not been such a declaration, then the Indenture Trustee
shall, to the fullest extent practicable, invest and reinvest funds in the
Accounts in one or more Eligible Investments specified in clauses (i), (iv) or
(vi) of the definition of Eligible Investments provided in the Sale and
Servicing Agreement. If the Indenture Trustee invests and reinvests funds in the
Reserve Account or the Yield Supplement Account pursuant to clause (ii) or
clause (iii) above, the Indenture Trustee shall issue a prohibition notice to
the securities intermediary as provided in the Securities Account Control
Agreement. If the Default or Event of Default that caused the Indenture Trustee
to assume control over the investment of funds in the Reserve Account and Yield
Supplement Account has been waived and the acceleration, if any, of the Notes
has been rescinded, the Indenture Trustee shall issue a rescission of
prohibition notice to the securities intermediary as provided in the Securities
Account Control Agreement.

         SECTION 8.04 Release of Trust Estate.

         (a) Subject to the payment of its fees and expenses pursuant to Section
6.07, the Indenture Trustee may, and when required by the provisions of this
Indenture shall, execute instruments to release property from the lien of this
Indenture, or convey the Indenture Trustee's interest in the same, in a manner
and under circumstances that are not inconsistent with the provisions of this
Indenture. No party relying upon an instrument executed by the Indenture

                                       47
<PAGE>

Trustee as provided in this Article VIII shall be bound to ascertain the
Indenture Trustee's authority, inquire into the satisfaction of any conditions
precedent or see to the application of any moneys.

         (b) The Indenture Trustee shall, at such time as there are no Notes
outstanding and all sums due the Indenture Trustee pursuant to Section 6.07 have
been paid, release any remaining portion of the Trust Estate that secured the
Notes from the lien of this Indenture and release to or to the order of the
Issuer, or, in the case of the Reserve Account or the Yield Supplement Account,
to the Seller, any funds entitled thereto then on deposit in the Collection
Account, the Reserve Account and the Yield Supplement Account, as the case may
be. The Indenture Trustee shall release property from the lien of this Indenture
pursuant to this Section 8.04(b) only upon receipt of an Issuer Request
accompanied by an Officer's Certificate and (if required by the TIA) Independent
Certificates in accordance with TIA Sections 314(c) and 314(d)(1) meeting the
applicable requirements of Section 11.01.

         SECTION 8.05 Release of Receivables Upon Purchase by the Seller or the
Servicer. (a) Upon repurchase of any Receivable by the Seller pursuant to
Section 3.02 of the Sale and Servicing Agreement or any purchase of any
Receivable by the Servicer pursuant to Section 4.06 or Section 9.01 of the Sale
and Servicing Agreement, the Indenture Trustee, on behalf of the Noteholders,
shall, without further action, be deemed to release from the Lien of this
Indenture such repurchased Receivable, all monies due or to become due with
respect thereto and all proceeds thereof and the other property with respect to
such Receivable, and all security and any documents relating thereto, and the
Seller or the Servicer, as applicable, shall thereupon own each such Receivable,
and all such related security and documents, free of any further obligation to
the Issuer, the Indenture Trustee or the Noteholders with respect thereto.

         (b) The Indenture Trustee shall execute such documents and instruments
and take such other actions as shall be reasonably requested by the Seller or
the Servicer, as the case may be, to effect the release of such Receivable
pursuant hereto and the assignment of such Receivable by the Issuer pursuant to
Section 9.02 of the Sale and Servicing Agreement.

         SECTION 8.06 Opinion of Counsel. The Indenture Trustee shall receive at
least seven days notice when requested by the Issuer to take any action pursuant
to Section 8.04(a), accompanied by copies of any instruments involved, and the
Indenture Trustee may also require (and shall require, to extent required by the
TIA), except in connection with any action contemplated by Section 8.04(b), as a
condition to such action, an Opinion of Counsel, in form and substance
satisfactory to the Indenture Trustee, stating the legal effect of any such
action, outlining the steps required to complete the same, and concluding that
all conditions precedent to the taking of such action have been complied with
and such action will not materially and adversely impair the security for the
Notes or the rights of the Noteholders in contravention of the provisions of
this Indenture; provided, however, that such Opinion of Counsel shall not be
required to express an opinion as to the fair value of the Trust Estate. Counsel
rendering any such opinion may rely, without independent investigation, on the
accuracy and validity of any certificate or other instrument delivered to the
Indenture Trustee in connection with any such action.

                                       48
<PAGE>

                                   ARTICLE IX
                             Supplemental Indentures

         SECTION 9.01 Supplemental Indentures Without Consent of Noteholders.

         (a) Without the consent of the Holders of any Notes but with prior
notice to the Rating Agencies, the Issuer and the Indenture Trustee, when
authorized by an Issuer Order, at any time and from time to time, may enter into
one or more indentures supplemental hereto (which shall conform to the
provisions of the TIA as in force at the date of the execution thereof), in form
satisfactory to the Indenture Trustee, for any of the following purposes:

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

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

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

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

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

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

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

         The Indenture Trustee is hereby authorized to join in the execution of
any such supplemental indenture and to make any further appropriate agreements
and stipulations that may be therein contained.

         (b) The Issuer and the Indenture Trustee, when authorized by an Issuer
Order, may, also without the consent of any of the Holders of the Notes, enter
into an indenture or indentures

                                       49
<PAGE>

supplemental hereto for the purpose of adding any provisions to, or changing in
any manner or eliminating any of the provisions of, this Indenture or of
modifying in any manner the rights of the Holders of the Notes under this
Indenture; provided, however, that such action shall not materially and
adversely affect the interests of any Noteholder.

         SECTION 9.02 Supplemental Indentures with Consent of Noteholders. The
Issuer and the Indenture Trustee, when authorized by an Issuer Order, also may,
with prior notice to the Rating Agencies and with the consent of the Holders of
a majority of the Outstanding Amount of the Notes, voting as a single class
(excluding for such purpose the outstanding principal amount of any Notes held
of record or beneficially owned by NARC II, NMAC or any of their Affiliates,
unless at such time all of the Notes are held of record or beneficially owned by
NARC II, NMAC or any of their Affiliates), by Action of such Holders delivered
to the Issuer and the Indenture Trustee, enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to, or changing in
any manner or eliminating any of the provisions of, this Indenture or of
modifying in any manner the rights of the Holders of the Notes under this
Indenture; provided, however, that no such supplemental indenture shall, without
the consent of the Holder of each Outstanding Note affected thereby:

         (a) change the due date of any installment of principal of or interest
on any Note, or reduce the principal amount thereof, the Interest Rate thereon
or redemption price therefor, or change any place of payment where, or the coin
or currency in which, any Note or the interest thereon is payable;

         (b) impair the right to institute suit for the enforcement of the
provisions of this Indenture requiring the application of funds available
therefor, as provided in Article V, to the payment of any such amount due on the
Notes on or after the respective due dates thereof;

         (c) reduce the percentage of the Outstanding Amount of the Notes, the
consent of the Holders of which is required for any such supplemental indenture,
or the consent of the Holders of which is required for any waiver of compliance
with certain provisions of this Indenture or certain defaults hereunder and
their consequences provided for in this Indenture;

         (d) modify or alter the provisions of the proviso to the definition of
the term "Outstanding";

         (e) reduce the percentage of the Outstanding Amount of the Notes
required to direct the Indenture Trustee to sell or liquidate the Trust Estate
if the proceeds of that sale would be insufficient to pay the principal amount
of and accrued but unpaid interest on the Notes pursuant to Section 5.04(c)(iv);

         (f) reduce any percentage required to amend the sections of the
Indenture that specify the applicable percentage of Outstanding Amount of the
Notes necessary to amend the Indenture; or

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

                                       50
<PAGE>

         The Indenture Trustee may in its discretion determine whether or not
any Notes would be adversely affected by any supplemental indenture and any such
determination shall be conclusive upon the Holders of all Notes, whether
theretofore or thereafter authenticated and delivered hereunder. The Indenture
Trustee shall not be liable for any such determination made in good faith.

         It shall not be necessary for any Action of Noteholders under this
Section to approve the particular form of any proposed supplemental indenture,
but it shall be sufficient if such Action shall approve the substance thereof.

         Promptly after the execution by the Issuer and the Indenture Trustee of
any supplemental indenture pursuant to this Section, the Indenture Trustee shall
mail to the Holders of the Notes to which such amendment or supplemental
indenture relates a notice setting forth in general terms the substance of such
supplemental indenture. Any failure of the Indenture Trustee to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture.

         Pursuant to the Trust Agreement and the Sale and Servicing Agreement,
the Issuer may, from time to time, at its option, enter into a currency Swap
Agreement with a Swap Counterparty to swap amounts payable to Certificateholders
from U.S. dollars to Japanese yen; provided, that (1) at the time the Issuer
enters into the Swap Agreement, the rating agencies have confirmed the
then-existing ratings of the Notes, and (2) any payments to the Swap
Counterparty (including termination payments) are payable only from amounts that
are otherwise payable to the Certificateholders. Any payments received by the
Issuer from the Swap Counterparty under such a Swap Agreement shall not be
deposited in the Collection Account and shall be paid by the Indenture Trustee
directly to or to the order of the Certificateholders on the related
Distribution Date. In connection with executing any such Swap Agreement, the
Issuer, Indenture Trustee, Owner Trustee, Seller and Servicer will enter into a
supplement to this Indenture, subject to this Section 9.02 and subject to the
approval of the Owner Trustee and the Certificateholders, that will specify the
creation of any necessary accounts and modifications of any provisions necessary
or appropriate to effectuate the intention of such Swap Agreement.

         SECTION 9.03 Execution of Supplemental Indentures. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this Article IX or the modification thereby of the trusts created
by this Indenture, the Indenture Trustee shall be entitled to receive upon
request therefor, and subject to Sections 6.01 and 6.02, shall be fully
protected in relying upon, an Opinion of Counsel from external counsel stating
that the execution of such supplemental indenture is authorized or permitted by
this Indenture. The Indenture Trustee may, but shall not be obligated to, enter
into any such supplemental indenture that affects the Indenture Trustee's own
rights, duties, liabilities or immunities under this Indenture or otherwise.

         SECTION 9.04 Effect of Supplemental Indenture. Upon the execution of
any supplemental indenture pursuant to the provisions hereof, this Indenture
shall be and shall be deemed to be modified and amended in accordance therewith
with respect to the Notes affected thereby, and the respective rights,
limitations of rights, obligations, duties, liabilities and immunities under
this Indenture of the Indenture Trustee, the Issuer and the Holders of the Notes

                                       51
<PAGE>

shall thereafter be determined, exercised and enforced hereunder subject in all
respects to such modifications and amendments, and all the terms and conditions
of any such supplemental indenture shall be and be deemed to be part of the
terms and conditions of this Indenture for any and all purposes.

         SECTION 9.05 Conformity with Trust Indenture Act. Every amendment of
this Indenture and every supplemental indenture executed pursuant to this
Article IX shall conform to the requirements of the Trust Indenture Act as then
in effect so long as this Indenture shall then be qualified under the Trust
Indenture Act.

         SECTION 9.06 Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article IX may, and if required by the Indenture Trustee shall,
bear a notation in form approved by the Indenture Trustee as to any matter
provided for in such supplemental indenture. If the Issuer or the Indenture
Trustee shall so determine, new Notes so modified as to conform, in the opinion
of the Indenture Trustee and the Issuer, to any such supplemental indenture may
be prepared and executed by the Issuer and authenticated and delivered by the
Indenture Trustee in exchange for Outstanding Notes.

                                    ARTICLE X
                                     Release

         SECTION 10.01 Optional Purchase of All Receivables. If the Servicer or
any successor to the Servicer shall notify the Owner Trustee and the Indenture
Trustee of its intention to exercise the option granted to it in Section 9.01 of
the Sale and Servicing Agreement to repurchase the outstanding Receivables
primarily comprising the Owner Trust Estate, then the Owner Trustee and the
Indenture Trustee shall give written notice thereof to each Securityholder and
the Rating Agencies as soon as practicable after their receipt of notice from
the Servicer. Upon deposit by the Servicer or any successor to the Servicer of
the amount necessary to effect such purchase of the corpus of the Owner Trust
Estate, the Indenture Trustee shall make the final distributions to the
Noteholders and Certificateholders as set forth in Section 5.06 of the Sale and
Servicing Agreement and shall promptly transfer all of its right, title and
interest in and to any amounts or investments remaining on deposit in the
Collection Account to the Owner Trustee, and in the Reserve Account and the
Yield Supplement Account to the Seller (in any event excluding any portion
thereof necessary to make distributions to Noteholders described in Section
3.03), and release from the lien of this Indenture all of the remaining
Collateral. The Indenture Trustee shall execute, deliver and file all
agreements, certificates, instruments or other documents necessary or reasonably
requested by the Issuer in order to effect such release and the transfer to the
Issuer of the Collateral.

                                   ARTICLE XI
                                  Miscellaneous

         SECTION 11.01 Compliance Certificates and Opinions, etc.

         (a) Upon any application or request by the Issuer to the Indenture
Trustee to take any action under any provision of this Indenture, the Issuer
shall, upon written request therefor from

                                       52
<PAGE>

the Indenture Trustee, furnish to the Indenture Trustee (i) an Officer's
Certificate stating that all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with, (ii) an
Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent, if any, have been complied with, and (iii) (if required by
the TIA) an Independent Certificate from a firm of certified public accountants
meeting the applicable requirements of this Section, except that, in the case of
any such application or request as to which the furnishing of such documents is
specifically required by any provision of this Indenture, no such written
request from the Indenture Trustee need be furnished (and only such expressly
required documents need be delivered in connection therewith).

         (b) Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

                  (i)      a statement that each signatory of such certificate
         or opinion has read or has caused to be read such covenant or condition
         and the definitions herein relating thereto;

                  (ii)     a brief statement as to the nature and scope of the
         examination or investigation upon which the statements or opinions
         contained in such certificate or opinion are based;

                  (iii)    a statement that, in the opinion of each such
         signatory, such signatory has made such examination or investigation as
         is necessary to enable such signatory to express an informed opinion as
         to whether or not such covenant or condition has been complied with;
         and

                  (iv)     a statement as to whether, in the opinion of each
         such signatory, such condition or covenant has been complied with.

         (c) (i) Prior to the deposit of any Collateral or other property or
securities with the Indenture Trustee that is to be made the basis for the
release of any property or securities subject to the lien of this Indenture, the
Issuer shall, in addition to any obligation imposed in Section 11.01(a) or
elsewhere in this Indenture, furnish to the Indenture Trustee (if so requested
by the Indenture Trustee or required by the TIA) an Officer's Certificate
certifying or stating the opinion of each person signing such certificate as to
the fair value (within 90 days of such deposit) to the Issuer of the Collateral
or other property or securities to be so deposited.

                  (ii)     Whenever the Issuer would be required to furnish to
         the Indenture Trustee an Officer's Certificate certifying or stating
         the opinion of any signatory thereof as to the matters described in
         clause (c)(i) above if such an Officer's Certificate had been requested
         by the Indenture Trustee or required by the TIA, regardless of whether
         such an Officer's Certificate was so requested or required, the Issuer
         shall deliver to the Indenture Trustee an Independent Certificate as to
         the same matters, if the fair value to the Issuer of the securities to
         be so deposited and of all other such securities made the basis of any
         such withdrawal or release since the commencement of the then-current
         calendar year of the Issuer, as set forth in the certificates delivered
         pursuant to clause (c)(i) above and this clause (c)(ii), is 10% or more
         of the Outstanding Amount of the Notes, but such a

                                       53
<PAGE>

         certificate need not be furnished with respect to any securities so
         deposited, if the fair value thereof to the Issuer as set forth in the
         related Officer's Certificate is less than $25,000 or less than one
         percent of the Outstanding Amount of the Notes.

                  (iii)    Whenever any property or securities are to be
         released from the lien of this Indenture, the Issuer shall also furnish
         to the Indenture Trustee an Officer's Certificate certifying or stating
         the opinion of each person signing such certificate as to the fair
         value (within 90 days of such release) of the property or securities
         proposed to be released and stating that in the opinion of such person
         the proposed release will not impair the security under this Indenture
         in contravention of the provisions hereof.

                  (iv)     Notwithstanding Section 2.09 or any other provision
         of this Section, the Issuer may, without compliance with the
         requirements of the other provisions of this Section, (A) collect,
         liquidate, sell or otherwise dispose of Receivables and Financed
         Vehicles as and to the extent permitted or required by the Basic
         Documents and (B) make cash payments out of the Accounts as and to the
         extent permitted or required by the Basic Documents so long as the
         Issuer shall deliver to the Indenture Trustee every six months,
         commencing April 15, 2004, an Officer's Certificate of the Issuer
         stating that all such dispositions of Collateral that occurred during
         the preceding six calendar months were in the ordinary course of the
         Issuer's business and that the proceeds thereof were applied in
         accordance with the Basic Documents.

         SECTION 11.02 Form of Documents Delivered to Indenture Trustee. In any
case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may certify
or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion
as to such matters in one or several documents.

         Any certificate or opinion of an Authorized Officer of the Issuer may
be based, insofar as it relates to legal matters, upon a certificate or opinion
of, or representations by, counsel, unless such officer knows, or in the
exercise of reasonable care should know, that the certificate or opinion or
representations with respect to the matters upon which such officer's
certificate or opinion is based are erroneous. Any such certificate of an
Authorized Officer or Opinion of Counsel may be based, insofar as it relates to
factual matters, upon a certificate or opinion of, or representations by, an
officer or officers of the Servicer, the Seller, the Issuer or the
Administrator, stating that the information with respect to such factual matters
is in the possession of the Servicer, the Seller, the Issuer or the
Administrator, unless such counsel knows, or in the exercise of reasonable care
should know, that the certificate or opinion or representations with respect to
such matters are erroneous.

         Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.

                                       54
<PAGE>

         Whenever in this Indenture, in connection with any application or
certificate or report to the Indenture Trustee, it is provided that the Issuer
shall deliver any document as a condition of the granting of such application,
or as evidence of the Issuer's compliance with any term hereof, it is intended
that the truth and accuracy, at the time of the granting of such application or
at the effective date of such certificate or report (as the case may be), of the
facts and opinions stated in such document shall in such case be conditions
precedent to the right of the Issuer to have such application granted or to the
sufficiency of such certificate or report. The foregoing shall not, however, be
construed to affect the Indenture Trustee's right to rely upon the truth and
accuracy of any statement or opinion contained in any such document as provided
in Article VI.

         SECTION 11.03 Acts of Noteholders.

         (a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Noteholders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Noteholders in person or by agents
duly appointed in writing; and except as herein otherwise expressly provided
such action shall become effective when such instrument or instruments are
delivered to the Indenture Trustee, and, where it is hereby expressly required,
to the Issuer. Such instrument or instruments (and the action embodied therein
and evidenced thereby) are herein sometimes referred to as the "Action" of the
Noteholders signing such instrument or instruments. Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Indenture and (subject to Section 6.01) conclusive in
favor of the Indenture Trustee and the Issuer, if made in the manner provided in
this Section.

         (b) The fact and date of the execution by any person of any such
instrument or writing may be proved in any manner that the Indenture Trustee
deems sufficient.

         (c) The ownership of Notes shall be proved by the Note Register.

         (d) Any request, demand, authorization, direction, notice, consent,
waiver or other action by the Holder of any Notes shall bind the Holder of every
Note issued upon the registration thereof or in exchange therefor or in lieu
thereof, in respect of anything done, omitted or suffered to be done by the
Indenture Trustee or the Issuer in reliance thereon, whether or not notation of
such action is made upon such Note.

         SECTION 11.04 Notices to Indenture Trustee, Issuer and Rating Agencies.
Any request, demand, authorization, direction, notice, consent, waiver or Action
of Noteholders or other documents provided or permitted by this Indenture shall
be in writing and if such request, demand, authorization, direction, notice,
consent, waiver or Action of Noteholders is to be made upon, given or furnished
to or filed with:

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

         (b) the Issuer by the Indenture Trustee or by any Noteholder, it shall
be sufficient for every purpose hereunder if in writing and mailed first-class,
postage prepaid to the Issuer addressed to: Nissan Auto Receivables 2003-C Owner
Trust, c/o Wilmington Trust Company,

                                       55
<PAGE>

Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890,
Attention: Nissan Auto Receivables 2003-C Owner Trust, with a copy to Nissan
Motor Acceptance Corporation, 990 West 190th Street, Torrance, California 90502,
Attention: Secretary, or at any other address previously furnished in writing to
the Indenture Trustee by the Issuer or the Administrator. The Issuer shall
promptly transmit any notice received by it from the Noteholders to the
Indenture Trustee.

         Notices required to be given to the Rating Agencies by the Issuer, the
Indenture Trustee or the Owner Trustee shall be in writing, personally delivered
or mailed by certified mail, return receipt requested, to (i) in the case of
Moody's, at the following address: Moody's Investors Service, ABS Monitoring
Department, 99 Church Street, New York, New York 10007, and (ii) in the case of
Standard & Poor's, at the following address: Standard & Poor's, a division of
The McGraw-Hill Companies, Inc., 55 Water Street, New York, New York 10041-0003,
Attention: Asset Backed Surveillance Department, or as to each of the foregoing,
at such other address as shall be designated by written notice to the other
parties.

         SECTION 11.05 Notices to Noteholders; Waiver. Where this Indenture
provides for notice to Noteholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class, postage prepaid to each Noteholder affected by such
event, at his address as it appears on the Note Register, not later than the
latest date, and not earlier than the earliest date, prescribed for the giving
of such notice. In any case where notice to Noteholders is given by mail,
neither the failure to mail such notice nor any defect in any notice so mailed
to any particular Noteholder shall affect the sufficiency of such notice with
respect to other Noteholders, and any notice that is mailed in the manner herein
provided shall conclusively be presumed to have been duly given.

         Where this Indenture provides for notice in any manner, such notice may
be waived in writing by any Person entitled to receive such notice, either
before or after the event, and such waiver shall be the equivalent of such
notice. Waivers of notice by Noteholders shall be filed with the Indenture
Trustee but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such a waiver.

         In case, by reason of the suspension of regular mail service as a
result of a strike, work stoppage or similar activity, it shall be impractical
to mail notice of any event to Noteholders when such notice is required to be
given pursuant to any provision of this Indenture, then any manner of giving
such notice as shall be satisfactory to the Indenture Trustee shall be deemed to
be a sufficient giving of such notice.

         Where this Indenture provides for notice to the Rating Agencies,
failure to give such notice shall not affect any other rights or obligations
created hereunder, and shall not under any circumstance constitute a Default or
Event of Default.

         SECTION 11.06 Alternate Payment and Notice Provisions. Notwithstanding
any provision of this Indenture or any of the Notes to the contrary, the Issuer
may enter into any agreement with any Holder of a Note providing for a method of
payment, or notice by the Indenture Trustee or any Paying Agent to such Holder,
that is different from the methods provided for in this Indenture for such
payments or notices. The Issuer will furnish to the

                                       56
<PAGE>

Indenture Trustee a copy of each such agreement and the Indenture Trustee will
cause payments to be made and notices to be given in accordance with such
agreements.

         SECTION 11.07 Conflict with Trust Indenture Act. If any provision
hereof limits, qualifies or conflicts with another provision hereof that is
required to be included in this Indenture by any of the provisions of the Trust
Indenture Act, such required provision shall control.

         The provisions of TIA Sections 310 through 317 that impose duties on
any person (including the provisions automatically deemed included herein unless
expressly excluded by this Indenture) are a part of and govern this Indenture,
whether or not physically contained herein.

         SECTION 11.08 Effect of Headings and Table of Contents. The Article and
Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

         SECTION 11.09 Successors and Assigns. All covenants and agreements in
this Indenture and the Notes by the Issuer shall bind its successors and
assigns, whether so expressed or not. All agreements of the Indenture Trustee in
this Indenture shall bind its successors, co-trustees and agents.

         SECTION 11.10 Severability. If any one or more of the covenants,
agreements, provisions or terms of this Indenture shall be for any reason
whatsoever held invalid or unenforceable in any jurisdiction, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Indenture and shall
in no way affect the validity or enforceability of the other provisions of this
Indenture or of the Notes or the Certificates or the rights of the Holders
thereof.

         SECTION 11.11 Benefits of Indenture. Nothing in this Indenture or in
the Notes, express or implied, shall give to any Person, other than the parties
hereto and their successors hereunder, and the Noteholders, and any other party
secured hereunder, and any other Person with an ownership interest in any part
of the Trust Estate, any benefit or any legal or equitable right, remedy or
claim under this Indenture.

         SECTION 11.12 Governing Law. This Indenture shall be governed by and
construed in accordance with the laws of the State of New York, without
reference to its conflict of law provisions (other than Section 5-1401 of the
General Obligations Law of the State of New York), and the obligations, rights
and remedies of the parties hereunder shall be determined in accordance with
such laws.

         SECTION 11.13 Counterparts. This Indenture may be executed
simultaneously in any number of counterparts, each of which shall be deemed to
be an original, and all of which shall constitute but one and the same
instrument.

         SECTION 11.14 Recording of Indenture. If this Indenture is subject to
recording in any appropriate public recording offices, such recording is to be
effected by the Issuer and at its expense accompanied by an Opinion of Counsel
(which may be counsel to the Indenture Trustee

                                       57
<PAGE>

or any other counsel reasonably acceptable to the Indenture Trustee) to the
effect that such recording is necessary either for the protection of the
Noteholders or any other Person secured hereunder or for the enforcement of any
right or remedy granted to the Indenture Trustee under this Indenture.

         SECTION 11.15 Trust Obligation. No recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or
the Indenture Trustee on the Notes or Certificates or under this Indenture or
any certificate or other writing delivered in connection herewith or therewith,
against (i) the Indenture Trustee or the Owner Trustee in its individual
capacity, (ii) the Seller, any Certificateholder or other owner of a beneficial
interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer,
director, employee or agent of the Indenture Trustee or the Owner Trustee in its
individual capacity, any Certificateholder or other owner of a beneficial
interest in the Issuer, the Owner Trustee or the Indenture Trustee or of any
successor or assign of the Indenture Trustee or the Owner Trustee in its
individual capacity, except as any such Person may have expressly agreed (it
being understood that the Indenture Trustee and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or
failure to pay any installment or call owing to such entity. For all purposes of
this Indenture, in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
of, the terms and provisions of Article VI, VII and VIII of the Trust Agreement.

         SECTION 11.16 No Petition. The Indenture Trustee, by entering into this
Indenture, and each Noteholder, by accepting a Note, hereby covenant and agree
that they will not at any time file, join in any filing of, or cooperate or
encourage others to file against the Seller or the Issuer any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States federal or state bankruptcy or similar law,
in connection with any obligations relating to the Notes, the Certificates or
any of the Basic Documents.

         SECTION 11.17 Inspection. The Issuer agrees that, on reasonable prior
notice, it will permit any representative of the Indenture Trustee, during the
Issuer's normal business hours, to examine all the books of account, records,
reports and other papers of the Issuer, to make copies and extracts therefrom,
to cause (at the expense of the requesting party) such books to be audited by
Independent certified public accountants, and to discuss the Issuer's affairs,
finances and accounts with the Issuer's officers, employees, and Independent
certified public accountants, all at such reasonable times and as often as may
be reasonably requested. The Indenture Trustee shall and shall cause its
representatives to hold in confidence all such information except to the extent
disclosure may be required by law (and all reasonable applications for
confidential treatment are unavailing) and except to the extent that the
Indenture Trustee may reasonably determine that such disclosure is consistent
with its obligations hereunder.

                                       58
<PAGE>

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

                               NISSAN AUTO RECEIVABLES 2003-C OWNER TRUST

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

                                       By:      /s/ Anita E. Dallago
                                           ------------------------------
                                           Name: Anita E. Dallago
                                           Title: Senior Financial Services
                                                  Officer

                               WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION,
                               not in its individual capacity but solely as
                               Indenture Trustee

                                       By:    /s/ Marianna C. Stershic
                                           ------------------------------
                                           Name: Marianna C. Stershic
                                           Title: Vice President

                                       S-1
<PAGE>

                                    EXHIBIT A

  (Form of Class A-1 Note, Class A-2 Note, Class A-3 Note, Class A-4 Note, and
                                   Class A-5)

         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 PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH
HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME
MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

         THIS NOTE IS NOT AN OBLIGATION OF, AND WILL NOT BE INSURED OR
GUARANTEED BY, ANY GOVERNMENTAL AGENCY OR NISSAN AUTO RECEIVABLES CORPORATION
II, NISSAN MOTOR ACCEPTANCE CORPORATION, NISSAN NORTH AMERICA, INC., NISSAN
MOTOR CO., LTD., ANY TRUSTEE OR ANY OF THEIR AFFILIATES. THE PRINCIPAL AND
INTEREST ON THIS NOTE IS PAYABLE SOLELY FROM PAYMENTS ON THE RECEIVABLES AND
AMOUNTS ON DEPOSIT IN THE RESERVE ACCOUNT AND THE YIELD SUPPLEMENT ACCOUNT.

                                       A-1
<PAGE>

         No_____                                                     $__________

                   NISSAN AUTO RECEIVABLES 2003-C OWNER TRUST

             CLASS [A-1][A-2][A-3][A-4][A-5] ___% ASSET BACKED NOTES

         Nissan Auto Receivables 2003-C Owner Trust, a statutory trust organized
and existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to ____________________,
or registered assigns, the principal sum of _______________ DOLLARS
($__________) payable on each Distribution Date in an aggregate amount, if any,
payable from the Collection Account in respect of the principal on the Class
[A-1][A-2][A-3][A-4][A-5] Notes pursuant to Section 3.01 of the Indenture dated
as of November 13, 2003 (the "Indenture"), between the Issuer and Wells Fargo
Bank Minnesota, National Association, as Indenture Trustee (the "Indenture
Trustee") and Sections 5.06(c), (d) and (e) of the Sale and Servicing Agreement
dated as of November 13, 2003 among the Issuer, NARC II, as Seller, and NMAC, as
Servicer (which amounts shall be limited to the portion of Available Amounts
specified in such sections); provided, however, that the entire unpaid principal
amount of this Note shall be due and payable on the Distribution Date occurring
in ____________________ (the "Class [A-1][A-2][A-3][A-4][A-5] Final Scheduled
Distribution Date"). Capitalized terms used but not defined herein have the
meanings ascribed thereto in the Indenture and the Sale and Servicing Agreement,
as the case may be.

         The Issuer will pay interest on this Note at the rate per annum shown
above on each Distribution Date until the principal of this Note is paid or made
available for payment, on the principal amount of this Note outstanding on the
preceding Distribution Date (after giving effect to all payments of principal
made on the preceding Distribution Date), subject to certain limitations
contained in Section 3.01 of the Indenture. Interest on this Note will accrue
for each Distribution Date, [during the period from (and including) the
Distribution Date during the calendar month 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)][during the period from (and
including) the 15th day of the preceding calendar month to (but excluding) the
15th day of the month in which such Distribution Date occurs]. Interest will be
computed on the basis specified in the Indenture for each Interest Period. Such
principal of and interest on this Note shall be paid in the manner specified on
the reverse hereof.

         The principal of and interest on this Note is payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the Issuer
with respect to this Note shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

                                       A-2
<PAGE>

         Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

         Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

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

Date: __________________

                                        NISSAN AUTO RECEIVABLES 2003-C
                                        OWNER TRUST

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

                                        By: ____________________________________
                                              Authorized Signatory

                                       A-3
<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

Date: _____________________

                                  WELLS FARGO BANK MINNESOTA,
                                  NATIONAL ASSOCIATION, not in its individual
                                  capacity but solely as Indenture Trustee

                                  By: ___________________________
                                         Authorized Signatory

                                      A-4

<PAGE>

         This Note is one of a duly authorized issue of Notes of the Issuer,
designated as [____]% Asset Backed Notes, Class [A-1][A-2][A-3][A-4][A-5]
(herein called the "Class [A-1][A-2][A-3][A-4][A-5] Notes"), all issued under
the Indenture, to which Indentures and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights and
obligations thereunder of the Issuer, the Indenture Trustee and the Holders of
the Notes. The Class [A-1][A-2][A-3][A-4][A-5] Notes are subject to all terms of
the Indenture.

         The Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the
Class A-4 Notes and the Class A-5 Notes (collectively, the "Notes") are and will
be equally and ratably secured by the collateral pledged as security therefor as
provided in the Indenture.

         Principal of the Class [A-1][A-2][A-3][A-4][A-5] Notes will be payable
on each Distribution Date in an amount described in the Indenture. "Distribution
Date" means the fifteenth day of each month, or, if any such date is not a
Business Day, the next succeeding Business Day, commencing December 15, 2003.

         Notwithstanding the foregoing, the entire unpaid principal amount of
the Notes shall be due and payable on the date on which an Event of Default
shall have occurred and be continuing and the Indenture Trustee or the Holders
of a majority of the Outstanding Amount of the Notes, voting as a single class
(excluding for such purpose the outstanding principal amount of any Notes held
of record or beneficially owned by NARC II, NMAC or any of their Affiliates,
unless at such time all of the Notes are held of record or beneficially owned by
NARC II, NMAC or any of their Affiliates), have declared the Notes to be
immediately due and payable in the manner provided in Section 5.02 of the
Indenture or following the exercise by the Servicer of its option to purchase
the Receivables pursuant to Section 9.01 of the Sale and Servicing Agreement and
Section 10.01 of the Indenture. In case of an unrescinded acceleration upon an
Event of Default, all payments of interest and principal in that order of
payment, will be made (1) first to the holders of the Class A-1 Notes, until the
outstanding principal balance of the Class A-1 Notes has been paid in full, and
(2) then to the holders of the Class A-2 Notes, the Class A-3 Notes, the Class
A-4 Notes, and the Class A-5 Notes on a pro rata basis (x) with respect to
interest, based on the respective aggregate amounts of interest due to these
classes of notes and (y) with respect to principal, based on the respective
outstanding principal balances of those classes of notes, until the outstanding
principal balances of those classes of notes have been paid in full. In case of
the optional purchase of the Receivables, all interest and principal payments on
the Class [A-1][A-2][A-3][A-4][A-5] Notes shall be made pro rata to the Class
[A-1][A-2][A-3][A-4][A-5] Noteholders entitled thereto.

         Payments of interest on this Note due and payable on each Distribution
Date, together with the installment of principal, if any, to the extent not in
full payment of this Note, shall be paid to the Person in whose name of such
Note (or one or more Predecessor Notes) is registered on the Record Date by wire
transfer in immediately available funds to the account designated by such
nominee, except for the final installment of principal payable with respect to
such Note on a Distribution Date or on the applicable Final Scheduled
Distribution Date, which shall be payable as provided below. Any reduction in
the principal amount of this Note (or any one or more Predecessor Notes)
effected by any payments made on any Distribution Date shall be binding upon all
future Holders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not noted
hereon. If funds are

                                      A-5

<PAGE>

expected to be available, as provided in the Indenture, for payment in full of
the then remaining unpaid principal amount of this Note on a Distribution Date,
then the Indenture Trustee, in the name of and on behalf of the Issuer, will
notify the Person who was the Registered Holder hereof as of the Record Date
preceding such Distribution Date by notice mailed or transmitted by facsimile
prior to such Distribution Date, and the amount then due and payable shall be
payable only upon presentation and surrender of this Note at the Indenture
Trustee's principal Corporate Trust Office or at the office of the Indenture
Trustee's agent appointed for such purposes located in The City of New York.

         The Issuer shall pay interest on overdue installments of interest at
the Class [A-1][A-2][A-3][A-4][A-5] Rate to the extent lawful.

         As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered on the Note Register
upon surrender of this Note for registration of transfer at the office or agency
designated by the Issuer pursuant to the Indenture, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee as set forth in Section 2.04 of the Indenture, and thereupon
one or more new Notes of authorized denominations and in the same aggregate
principal amount will be issued to the designated transferee or transferees. No
service charge will be charged for any registration of transfer or exchange of
this Note, but the transferor may be required to pay a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection with any
such registration of transfer or exchange.

         Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note, covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
the Indenture or any certificate or other writing delivered in connection
therewith, against (i) the Indenture Trustee or the Owner Trustee in its
individual capacity, (ii) the Seller or any owner of a beneficial interest in
the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director or
employee of the Indenture Trustee or the Owner Trustee in its individual
capacity, any holder of a beneficial interest in the Issuer, the Owner Trustee
or the Indenture Trustee or of any successor or assign of the Indenture Trustee
or the Owner Trustee in its individual capacity, except as any such Person may
have expressly agreed (it being understood that the Indenture Trustee and the
Owner Trustee have no such obligations in their individual capacity) and except
that any such partner, owner or beneficiary shall be fully liable, to the extent
provided by applicable law, for any unpaid consideration for stock, unpaid
capital contribution or failure to pay any installment or call owing to such
entity.

         The Holder of this Note by its acceptance hereof agrees that, except as
expressly provided in the Basic Documents, in the case of an Event of Default
under the Indenture, the Holder shall have no claim against any of the foregoing
for any deficiency, loss or claim therefrom; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and enforcement against,
the assets of the Issuer for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Note.

         Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note, covenants and agrees by
accepting the benefits of the

                                      A-6

<PAGE>

Indenture that such Noteholder or Note Owner will not at any time file, join in
the filing of, or cooperate with or encourage others to file against the Seller
or the Issuer, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings under any United States federal or state bankruptcy or
similar law in connection with any obligations relating to the Notes, the
Indenture or the Basic Documents.

         The Issuer has entered into the Indenture and this Note is issued with
the intention that, for federal, state and local income, single business and
franchise tax purposes, the Notes will qualify as indebtedness of the Issuer
secured by the Trust Estate. Each Noteholder, by acceptance of a Note (and each
Note Owner by acceptance of a beneficial interest in a Note), agrees to treat
the Notes for federal, state and local income, single business and franchise tax
purposes as indebtedness of the Issuer.

         Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Note (as of the day of
determination or as of such other date as may be specified in the Indenture) is
registered as the owner hereof for all purposes, whether or not this Note be
overdue, and none of the Issuer, the Indenture Trustee or any such agent shall
be affected by notice to the contrary.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer and the Indenture Trustee, when authorized by an Issuer
Order, with prior notice to the Rating Agencies and with the consent of the
Holders of a majority of the Outstanding Amount of the Notes, voting as a single
class (excluding for such purpose the outstanding principal amount of any Notes
held of record or beneficially owned by NARC II, NMAC or any of their
Affiliates, unless at such time all of the Notes are held of record or
beneficially owned by NARC II, NMAC or any of their Affiliates). Section 5.12 of
the Indenture also contains provisions permitting the Holders of a majority of
the Outstanding Amount of the Notes, voting as a single class (excluding for
such purpose the outstanding principal amount of any Notes held of record or
beneficially owned by NARC II, NMAC or any of their Affiliates, unless at such
time all of the Notes are held of record or beneficially owned by NARC II, NMAC
or any of their Affiliates), on behalf of the Holders of all the Notes, to waive
compliance by the Issuer with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this Note (or any one or more Predecessor Notes) shall
be conclusive and binding upon such Holder and upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof whether or not notation of such consent or
waiver is made upon this Note. The Indenture also permits the Indenture Trustee
to amend or waive certain terms and conditions set forth in the Indenture
without the consent of Holders of the Notes issued thereunder.

         The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

                                      A-7

<PAGE>

         The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Indenture Trustee and the
Holders of Notes under the Indenture.

         The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

         This Note and the Indenture shall be construed in accordance with the
laws of the State of New York, without reference to its conflict of law
provisions (other than Section 5-1401 of the General Obligations Law of the
State of New York), and the obligations, rights and remedies of the parties
hereunder and thereunder shall be determined in accordance with such laws.

         No reference herein to the Indenture and no provision of this Note or
of the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place and rate, and in the coin or currency herein prescribed.

                                      A-8

<PAGE>

                                   ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee:
__________________

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

________________________________________________________________________________
                         (name and address of assignee)

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

Dated: _________________________________*/

Signature Guaranteed:

________________________________________*/

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

                                      A-9

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                           PAGE
                                                                                           ----
<S>                                                                                        <C>
                                           ARTICLE I
                          DEFINITIONS AND INCORPORATION BY REFERENCE

SECTION 1.01     Definitions.............................................................    2
SECTION 1.02     Usage of Terms..........................................................    8
SECTION 1.03     Incorporation by Reference of Trust Indenture Act.......................    8

                                          ARTICLE II
                                          THE NOTES

SECTION 2.01     Form....................................................................    8
SECTION 2.02     Execution, Authentication and Delivery..................................    9
SECTION 2.03     Temporary Notes.........................................................    9
SECTION 2.04     Registration; Registration of Transfer and Exchange.....................   10
SECTION 2.05     Mutilated, Destroyed, Lost or Stolen Notes..............................   11
SECTION 2.06     Persons Deemed Owners...................................................   11
SECTION 2.07     Payments of Principal and Interest......................................   11
SECTION 2.08     Cancellation............................................................   12
SECTION 2.09     Release of Collateral...................................................   12
SECTION 2.10     Book-Entry Notes........................................................   13
SECTION 2.11     Notices to Clearing Agency..............................................   13
SECTION 2.12     Definitive Notes........................................................   13
SECTION 2.13     Tax Treatment...........................................................   14

                                         ARTICLE III
                          COVENANTS, REPRESENTATIONS AND WARRANTIES

SECTION 3.01     Payment of Principal and Interest.......................................   14
SECTION 3.02     Maintenance of Office or Agency.........................................   15
SECTION 3.03     Money for Payments To Be Held in Trust..................................   15
SECTION 3.04     Existence...............................................................   17
SECTION 3.05     Protection of Trust Estate..............................................   17
SECTION 3.06     Opinions as to Trust Estate.............................................   17
SECTION 3.07     Performance of Obligations; Servicing of Receivables....................   18
SECTION 3.08     Negative Covenants......................................................   20
SECTION 3.09     Annual Statement as to Compliance.......................................   20
SECTION 3.10     Issuer May Consolidate, etc., Only on Certain Terms.....................   21
SECTION 3.11     Successor or Transferee.................................................   22
SECTION 3.12     No Other Business.......................................................   23
SECTION 3.13     No Borrowing............................................................   23
SECTION 3.14     Servicer's Notice Obligations...........................................   23
SECTION 3.15     Guarantees, Loans, Advances and Other Liabilities.......................   23
SECTION 3.16     Capital Expenditures....................................................   23
SECTION 3.17     Removal of Administrator................................................   23
SECTION 3.18     Restricted Payments.....................................................   23
</TABLE>

                                      -i-

<PAGE>

                               TABLE OF CONTENTS
                                  (CONTINUED)

<TABLE>
<CAPTION>
                                                                                           PAGE
                                                                                           ----
<S>                                                                                        <C>
SECTION 3.19     Notice of Events of Default.............................................   24
SECTION 3.20     Further Instruments and Actions.........................................   24
SECTION 3.21     Representations and Warranties..........................................   24

                                          ARTICLE IV
                                  SATISFACTION AND DISCHARGE

SECTION 4.01     Satisfaction and Discharge of Indenture.................................   25
SECTION 4.02     Application of Trust Money..............................................   26
SECTION 4.03     Repayment of Moneys Held by Paying Agent................................   26

                                          ARTICLE V
                                           REMEDIES

SECTION 5.01     Events of Default.......................................................   26
SECTION 5.02     Acceleration of Maturity; Rescission and Annulment......................   27
SECTION 5.03     Collection of Indebtedness and Suits for Enforcement by Indenture
                 Trustee.................................................................   28
SECTION 5.04     Remedies; Priorities....................................................   30
SECTION 5.05     Optional Preservation of the Receivables................................   31
SECTION 5.06     Limitation of Suits.....................................................   32
SECTION 5.07     Unconditional Rights of Noteholders To Receive Principal and
                 Interest................................................................   32
SECTION 5.08     Restoration of Rights and Remedies......................................   33
SECTION 5.09     Rights and Remedies Cumulative..........................................   33
SECTION 5.10     Delay or Omission Not a Waiver..........................................   33
SECTION 5.11     Control by Noteholders..................................................   33
SECTION 5.12     Waiver of Past Defaults.................................................   34
SECTION 5.13     Undertaking for Costs...................................................   34
SECTION 5.14     Waiver of Stay or Extension Laws........................................   34
SECTION 5.15     Action on Notes.........................................................   35
SECTION 5.16     Performance and Enforcement of Certain Obligations......................   35

                                          ARTICLE VI
                                    THE INDENTURE TRUSTEE

SECTION 6.01     Duties of Indenture Trustee.............................................   35
SECTION 6.02     Rights of Indenture Trustee.............................................   37
SECTION 6.03     Individual Rights of Indenture Trustee..................................   38
SECTION 6.04     Indenture Trustee's Disclaimer..........................................   38
SECTION 6.05     Notice of Defaults......................................................   39
SECTION 6.06     Reports by Indenture Trustee to Holders.................................   39
SECTION 6.07     Compensation and Indemnity..............................................   39
SECTION 6.08     Replacement of Indenture Trustee........................................   40
</TABLE>

                                      -ii-

<PAGE>

                               TABLE OF CONTENTS
                                  (CONTINUED)

<TABLE>
<CAPTION>
                                                                                           PAGE
                                                                                           ----
<S>                                                                                        <C>
SECTION 6.09     Successor Indenture Trustee by Merger...................................   41
SECTION 6.10     Appointment of Co-Indenture Trustee or Separate Indenture
                 Trustee.................................................................   41
SECTION 6.11     Eligibility; Disqualification...........................................   42
SECTION 6.12     Preferential Collection of Claims Against Issuer........................   42
SECTION 6.13     Acknowledgement by Indenture Trustee of its Obligations Under
                 the Sale and Servicing Agreement........................................   42

                                         ARTICLE VII
                                NOTEHOLDERS' LISTS AND REPORTS

SECTION 7.01     Note Registrar To Furnish Names and Addresses of Noteholders............   43
SECTION 7.02     Preservation of Information; Communications to Noteholders..............   43
SECTION 7.03     Reports by Issuer.......................................................   43
SECTION 7.04     Reports by Indenture Trustee............................................   44
SECTION 7.05     Indenture Trustee Website...............................................   44

                                         ARTICLE VIII
                             ACCOUNTS, DISBURSEMENTS AND RELEASES

SECTION 8.01     Collection of Money.....................................................   45
SECTION 8.02     Accounts................................................................   45
SECTION 8.03     General Provisions Regarding Accounts...................................   46
SECTION 8.04     Release of Trust Estate.................................................   47
SECTION 8.05     Release of Receivables Upon Purchase by the Seller or the
                 Servicer................................................................   48
SECTION 8.06     Opinion of Counsel......................................................   48

                                          ARTICLE IX
                                   SUPPLEMENTAL INDENTURES

SECTION 9.01     Supplemental Indentures Without Consent of Noteholders..................   49
SECTION 9.02     Supplemental Indentures with Consent of Noteholders.....................   50
SECTION 9.03     Execution of Supplemental Indentures....................................   51
SECTION 9.04     Effect of Supplemental Indenture........................................   51
SECTION 9.05     Conformity with Trust Indenture Act.....................................   52
SECTION 9.06     Reference in Notes to Supplemental Indentures...........................   52

                                          ARTICLE X
                                           RELEASE

SECTION 10.01    Optional Purchase of All Receivables....................................   52
</TABLE>

                                     -iii-

<PAGE>
                               TABLE OF CONTENTS
                                  (CONTINUED)

<TABLE>
<CAPTION>
                                                                                           PAGE
                                                                                           ----
<S>                                                                                        <C>
                                          ARTICLE XI
                                        MISCELLANEOUS

SECTION 11.01    Compliance Certificates and Opinions, etc...............................   52
SECTION 11.02    Form of Documents Delivered to Indenture Trustee........................   54
SECTION 11.03    Acts of Noteholders.....................................................   55
SECTION 11.04    Notices to Indenture Trustee, Issuer and Rating Agencies................   55
SECTION 11.05    Notices to Noteholders; Waiver..........................................   56
SECTION 11.06    Alternate Payment and Notice Provisions.................................   56
SECTION 11.07    Conflict with Trust Indenture Act.......................................   57
SECTION 11.08    Effect of Headings and Table of Contents................................   57
SECTION 11.09    Successors and Assigns..................................................   57
SECTION 11.10    Severability............................................................   57
SECTION 11.11    Benefits of Indenture...................................................   57
SECTION 11.12    Governing Law...........................................................   57
SECTION 11.13    Counterparts............................................................   57
SECTION 11.14    Recording of Indenture..................................................   57
SECTION 11.15    Trust Obligation........................................................   58
SECTION 11.16    No Petition.............................................................   58
SECTION 11.17    Inspection..............................................................   58

EXHIBIT A        FORM OF CLASS A-1 NOTE, CLASS A-2 NOTE, CLASS A-3 NOTE,
                 CLASS A-4 NOTE AND CLASS A-5 NOTE
</TABLE>

                                      -iv-

<PAGE>
<TABLE>
<CAPTION>
  TIA                                                            Indenture
Section                                                           Section
-------                                                         ----------
<S>                                                             <C>
</TABLE>

                             CROSS-REFERENCE TABLE
                         (not a part of this Indenture)

<TABLE>
<CAPTION>
  TIA                                                            Indenture
Section                                                           Section
-------                                                         ----------
<S>                                                             <C>
(Section)310(a)(1) ......................................         6.11
      (a)(2) ............................................         6.11
      (a)(3) ............................................         6.10(b)(i)
      (a)(4) ............................................         N.A.
      (a)(5) ............................................         6.11
      (b) ...............................................         5.04
                                                                  6.08
                                                                  6.11
                                                                 11.04
      (c) ...............................................         N.A.
(Section)311(a) .........................................         6.12
      (b) ...............................................         6.12
      (c) ...............................................         N.A.
(Section)312(a) .........................................         7.01
      (b) ...............................................         7.01
                                                                  7.02(b)
      (c) ...............................................         7.02(c)
(Section)313(a) .........................................         7.04
      (b)(1) ............................................         N.A.
      (b)(2) ............................................         7.04
      (c) ...............................................         7.04
                                                                 11.04
      (d) ...............................................         7.04
(Section)314(a) .........................................         7.03
                                                                  3.09
                                                                 11.04
                                                                  7.04
      (b) ...............................................         3.06
                                                                 11.14
                                                                  7.04
      (c)(1) ............................................        11.01
                                                                  6.02
                                                                  8.05(b)
                                                                  6.02
                                                                 11.01
      (c)(2) ............................................        11.01
                                                                  3.06
                                                                  3.10
                                                                  6.02
                                                                  8.05(b)
</TABLE>

                                       v

<PAGE>

<TABLE>
<CAPTION>
  TIA                                                           Indenture
Section                                                          Section
-------                                                         ---------
<S>                                                             <C>
                                                                  8.06
      (c)(3) ............................................        11.01
      (d) ...............................................        11.01(c)
      (e) ...............................................        11.01
      (f) ...............................................         N.A.
(Section)315(a) .........................................         6.01
      (b) ...............................................         6.05
      (c) ...............................................         N.A.
      (d) ...............................................         6.01(c)
      (e) ...............................................         5.13
(Section)316(a)(1)(A) ...................................         5.11
                                                                  6.01(c)
      (a)(1)(B) .........................................         5.12
      (a)(2) ............................................         N.A.
      (b) ...............................................         5.07
                                                                  9.02
                                                                  5.13(c)
      (c) ...............................................         N.A.
(Section)317(a)(1) ......................................         5.04
      (a)(2) ............................................         5.03(c)
                                                                  5.03(d)
                                                                  5.04
      (b) ...............................................         3.03
(Section)318(a) .........................................        11.07
</TABLE>

---------
N.A. means not applicable.

                                       vi

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00058-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00058-of-00352.parquet"}]]