Document:

EXHIBIT 10.92

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                           MBIA INSURANCE CORPORATION,
                                    as Surety

                  FIRST INVESTORS AUTO RECEIVABLES CORPORATION,
                                  as Transferor

                    FIRST INVESTORS FINANCIAL SERVICES, INC.,
                                    as Seller

                     FIRST INVESTORS SERVICING CORPORATION,
                                   as Servicer

                WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION,
               as Collateral Agent, Back-up Servicer and Custodian
                                       and

                             BANK OF AMERICA, N.A.,
                            as Reserve Account Agent

                               AMENDMENT NO. 2 TO
                               INSURANCE AGREEMENT

             First Investors Auto Receivables Corporation Revolving
                    Automobile Receivables Financing Facility

                          Dated as of November 29, 2000

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                     AMENDMENT NO. 2 TO INSURANCE AGREEMENT

      THIS AMENDMENT NO. 2 TO INSURANCE AGREEMENT ("Amendment") amends that
Insurance Agreement dated as of October 1, 1996 (as amended and supplemented,
the "Insurance Agreement") by and among MBIA Insurance Corporation, as Surety,
First Investors Auto Receivables Corporation, as Transferor, First Investors
Financial Services, Inc., as Seller, Chase Bank of Texas (formerly known as
Texas Commerce Bank, National Association), as Collateral Agent, and
NationsBank, N.A., as Reserve Account Agent. This Amendment is dated as of
November 29, 2000 by and among MBIA INSURANCE CORPORATION (the "Surety"), FIRST
INVESTORS AUTO RECEIVABLES CORPORATION, in its capacity as transferor (the
"Transferor"), FIRST INVESTORS FINANCIAL SERVICES, INC., in its capacity as
seller (the "Seller"), WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION
(formerly known as Norwest Bank Minnesota, National Association), in its
capacity as successor Collateral Agent (the "Collateral Agent"), in its capacity
as back-up servicer (the "Back-up Servicer"), and in its capacity as Custodian
(the "Custodian"), FIRST INVESTORS SERVICING CORPORATION (formerly known as Auto
Lenders Acceptance Corporation), in its capacity as successor servicer (the
"Servicer") and BANK OF AMERICA, N.A. (formerly known as NationsBank, N.A.), in
its capacity as Reserve Account Agent (the "Reserve Account Agent").

                                  RECITALS:

      WHEREAS, the Transferor, Enterprise Funding Corporation (the "Company"),
the Reserve Account Agent, Chase Bank of Texas, National Association, as Initial
Collateral Agent, the Surety and the Seller entered into a Security Agreement
(as defined herein) dated as of October 22, 1996 (as amended and supplemented
from time to time, the "Security Agreement"), pursuant to which, among other
things, the Transferor granted a security interest in certain collateral as more
fully described therein to the Collateral Agent thereunder for the benefit of
the Company and the Surety, to secure payments under the Note, the Security
Agreement, the Note Purchase Agreement and this Agreement.

      WHEREAS, the Surety issued its Surety Bond (as defined below) at the
request of the Transferor and the Seller, which guarantees payment of Insured
Amounts (as defined in the Surety Bond), upon such terms and conditions as were
mutually agreed upon by the parties and subject to the terms and conditions of
the Surety Bond.

      WHEREAS, the Transferor and the Seller seek MBIA's consent to, among other
things, an amendment to the Security Agreement.

      WHEREAS, the parties hereto desire to amend the Insurance Agreement to
conform the Insurance Agreement to the other amendments.

      WHEREAS, the Transferor, the Company, the Reserve Account Agent, the
Collateral Agent, the Surety and the Seller are entering into an Amendment No. 3
to Security Agreement

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<PAGE>
dated as of November 29, 2000, pursuant to which the parties thereto are
amending certain provisions to with respect to funding conditions and certain
other matters.

      WHEREAS, Section 6.01 of the Insurance Agreement provides that the
Insurance Agreement may be amended with the consent of each of the parties
thereto.

      NOW, THEREFORE, in consideration of the premises and of the agreements
herein contained, the Servicer, the Back-up Servicer, the Custodian, the Surety,
the Transferor, the Seller, the Successor Collateral Agent and the Reserve
Account Agent agree as follows:

                                   ARTICLE I

                                  DEFINED TERMS

      SECTION 1.01. GENERAL DEFINITIONS. Capitalized terms used in this
Agreement but not otherwise defined herein will have the meanings ascribed to
such terms in the Insurance Agreement.

                                   ARTICLE II

                      AMENDMENTS TO OPERATIVE PROVISIONS

      SECTION 2.01. AMENDMENT TO SECTION 2.03. Section 2.03(e) of the Agreement
is hereby deleted and replaced as follows:

            "(e) INTEREST RATE CAP. The Transferor will not enter into any
      Interest Rate Cap until the Cap Counterparty has been approved in form and
      substance and in writing by the Surety; provided, however, that MBIA's
      prior written consent to the Cap Counterparty shall not be required if (A)
      the Cap Counterparty is any of the following: (i) NationsBanc Capital
      Markets; (ii) Bank of America; (iii) Wells Fargo Bank; or (iv) First Union
      Capital Markets, Inc.; and (B) such Cap Counterparty referenced in (A) has
      not been downgraded by either of S&P or Moody's below its Required Rating.
      The Transferor shall not agree to any changes to any Interest Rate Cap
      unless the Surety shall have previously given its consent. The Transferor
      shall take or refrain from taking any action, and exercise or refrain from
      exercising any rights of the Transferor under any Interest Rate Cap, in
      the manner directed by the Surety."

                                  ARTICLE III

                                  MISCELLANEOUS

      SECTION 3.01. COUNTERPARTS. This Amendment may be executed in counterparts
by the parties hereto, and each such counterpart shall be considered an original
and all such counterparts shall constitute one and the same instrument.

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      SECTION 3.02. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD
TO CONFLICTS OF LAW PRINCIPLES THEREOF.

      SECTION 3.03. LIMITED SCOPE. This Amendment is specific to the
circumstances described above and does not imply any future amendment or waiver
of rights allocated to the Surety under the Insurance Agreement.

      SECTION 3.04. RATIFICATION. Except as expressly affected by the provisions
hereof, the Insurance Agreement as amended shall remain in full force and effect
in accordance with its terms and is hereby ratified and confirmed by the parties
hereto. On and after the date hereof, each reference in the Insurance Agreement
to "this Agreement", "hereunder", "herein" or words of like import shall mean
and be a reference to the Insurance Agreement as amended by this Amendment and
any reference to "the parties hereto", "no party hereto" or words of like import
shall be deemed to include all of the parties to this Amendment.

      SECTION 3.05. NOTICE TO RATING AGENCIES. Promptly after the execution of
this Amendment, the Seller shall mail an executed copy of this Amendment to the
Rating Agencies. By execution of this Amendment, the parties acknowledge receipt
of notice of this Amendment.

        [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS]

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      IN WITNESS WHEREOF, the parties hereto have executed this Agreement, all
as of the day and year first above mentioned.

                                    MBIA INSURANCE CORPORATION

                                    By:_______________________________________
                                    Title:____________________________________

                                    FIRST INVESTORS AUTO RECEIVABLES
                                    CORPORATION, as Transferor

                                    By:_______________________________________
                                    Title:____________________________________

                                    FIRST INVESTORS FINANCIAL SERVICES,
                                    INC., as Seller

                                    By:_______________________________________
                                    Title:____________________________________

                                    WELLS FARGO BANK MINNESOTA,
                                    NATIONAL ASSOCIATION, as Collateral
                                    Agent, Back-up Servicer and Custodian

                                    By:_______________________________________
                                    Title:____________________________________

                                    BANK OF AMERICA,  N.A., as Reserve Account
                                    Agent

                                    By:_______________________________________
                                    Title:____________________________________

                                    FIRST INVESTORS SERVICING
                                    CORPORATION, as Servicer

                                    By:_______________________________________
                                    Title:____________________________________

          [EXECUTION PAGE OF AMENDMENT NO. 2 TO INSURANCE AGREEMENT]EXHIBIT 10.93

               AMENDMENT NUMBER 3 TO SECURITY AGREEMENT

            AMENDMENT NUMBER 3 TO SECURITY AGREEMENT (this "AMENDMENT"), dated
as of November 29, 2000 among FIRST INVESTORS AUTO RECEIVABLES CORPORATION, a
Delaware corporation, as debtor (in such capacity, the "DEBTOR"), FIRST
INVESTORS FINANCIAL SERVICES, INC., a Texas corporation, as seller (the
"SELLER"), ENTERPRISE FUNDING CORPORATION, a Delaware corporation (the
"COMPANY"), MBIA INSURANCE CORPORATION, a New York stock insurance company (the
"SURETY BOND PROVIDER"), BANK OF AMERICA, N.A., a national banking association,
individually and as Reserve Account Agent (together with its successors and
assigns in such capacity, the "Reserve Account Agent"), and WELLS FARGO BANK
MINNESOTA, NATIONAL ASSOCIATION, a national banking association ("WELLS FARGO"),
as collateral agent (together with its successors and assigns in such capacity,
the "COLLATERAL AGENT"), as Back-up Servicer and as Custodian, amending that
certain Security Agreement dated as of October 22, 1996, as amended prior to the
date hereof (the "SECURITY AGREEMENT").

            WHEREAS, the Debtor has requested amendments to certain of the
provisions under the Security Agreement;

            WHEREAS, the parties hereto have agreed to make certain amendments
to the Security Agreement.

            NOW, THEREFORE, the parties hereby agree as follows:

            SECTION 1. DEFINED TERMS. As used in this Amendment, capitalized
terms shall have the same meanings assigned thereto in the Security
Agreement.

            SECTION 2. ADDITIONAL DEFINED TERMS. The following terms are
hereby added to Section 1.1 of the Security Agreement in appropriate
alphabetical order:

            "FISC" shall mean First Investors Servicing Corporation.

            "MONTHLY EXTENSION RATE" shall mean the number of extensions granted
during any Collection Period divided by the aggregate number of retail
installment sales contracts owned or serviced by the Seller at the beginning of
the Collection Period.
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            SECTION 3. AMENDMENT TO DEFINED TERMS.

            (a) The definition of "ALAC" is hereby deleted.

            (b) The definition of "Addition Closing Date" is hereby deleted and
replaced with the following:

            "Addition Closing Date" shall mean the closing date on which
Additional Receivables are funded pursuant to the terms and conditions set forth
in Section 2.2 hereof."

            (c) Subclause (iii) of the definition of "Defaulted Receivable" is
hereby amended to read as follows (solely for convenience, changed text is
italicized):

            "(iii) any payment or part thereof is over 120 days contractually
            delinquent (or if the related obligor is insolvent or has sought
            protection under the United States Bankruptcy Code and such
            receivable is more than 180 days delinquent). A Receivable may only
            be determined to be a Reinstated Receivable once."

            (d) The definition of "Delinquent Receivable" is hereby amended to
read as follows (solely for convenience, changed text is italicized):

            "DELINQUENT RECEIVABLE" shall mean each Receivable (i) as to which
MORE THAN TEN DOLLARS OF any payment remains unpaid for more than 30 days from
the original due date for such payment and (ii) is not a Defaulted Receivable."

            (e) Subsection (q) of the definition of "Eligible Receivable" is
hereby amended to read as follows (solely for convenience, changed text is
italicized):

            "(q) which has AN ORIGINAL MATURITY OF 66 months or LESS; (PROVIDED,
            HOWEVER, THAT NO MORE THAN 10% OF THE PRINCIPAL BALANCE OF ANY
            RECEIVABLES PLEDGED MAY HAVE AN ORIGINAL MATURITY OF 60 TO 66
            MONTHS)"

            (f) Subsection (ac) of the definition of "Eligible Receivable" is
hereby amended to delete the word "and" following the subsection.

            (g) Subsection (ad) of the definition of "Eligible Receivable" is
hereby amended to delete the period following the subsection and by replacing it
with a semi-colon followed by the word "and".

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            (h) The definition of "Eligible Receivable" is hereby amended to
add the following subsection (ae):

            "(ae) which when combined with all the Receivables will not cause
the aggregate Principal Balance of those Receivables that meet the criteria of
Tier 4 or Tier 5 as set forth in the Credit Guidelines for such designation, to
exceed 15% of the aggregate Principal Balance of all Receivables."

            (i) The definition of "Facility Limit" is hereby deleted and
replaced with the following:

            "FACILITY LIMIT" shall mean $150,000,000."

            (j) The definition of "Noteholder's Percentage" is hereby amended to
read as follows (solely for convenience, changed text is italicized):

            "NOTEHOLDER'S PERCENTAGE" shall mean 94%."

            (k) The definition of "Re-Liening Trigger" is hereby deleted and
replaced with the following:

            "RE-LIENING TRIGGER" shall mean the occurrence and continuance of
            any Servicer Event of Default or Termination Event."

            (l) The definition of "Servicer" is hereby amended to read as
follows (solely for convenience, changed text is italicized):

            "SERVICER" shall mean FISC as servicer under the Servicing Agreement
            or any successor Servicer acceptable to the Surety Bond Provider."

            (m) The definition of "Supplemental Conveyance" is hereby
deleted.

            (n) The definition of "Termination Date" is hereby amended by
deleting subsection (i) thereof and replacing it with the following:

            "(i) November 28, 2001 unless such date shall be extended by the
            parties hereto pursuant to a written document,"

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            SECTION 4. AMENDMENT TO SECTION 2.1. The following sentences are
hereby added to the end of the final paragraph of Section 2.1 of the Security
Agreement:

            "The Debtor shall, on or before November 29, 2000, deliver or cause
to be delivered to the Collateral Agent and the Secured Parties an opinion of
counsel of Buck, Keenan & Owens, L.L.P., addressing perfection of the first
priority security interest of the Collateral Agent in the Collateral now
existing and hereafter created under this Agreement. In addition, the Collateral
Agent or the Secured Parties shall have the right to request the Debtor to
deliver or caused to be delivered to such parties a new perfection opinion with
respect to the Collateral in the event of a change in the law addressed pursuant
to such opinion."

            SECTION 5. AMENDMENT TO SECTION 2.2.

            (a) Subsection (a) of Section 2.2 of the Security Agreement is
hereby amended by deleting the following clause from the first sentence thereof:

            "but no more than once in any consecutive three month period (unless
more frequent additions are approved by the Collateral Agent acting upon written
instructions of each of the Secured Parties)".

            (b) Subsection (a) subclause (ii) of Section 2.2 of the Security
Agreement is hereby amended to read as follows (solely for convenience, changed
text is italicized):

            "(ii) the Debtor shall have entered into an Interest Rate Cap, AN
EXECUTED COPY OF WHICH SHALL BE DELIVERED TO THE SURETY BOND PROVIDER PROMPTLY
FOLLOWING EXECUTION THEREOF,".

            (c) Subsection (b) of Section 2.2 of the Security Agreement is
hereby deleted and replaced with the following:

            "(b) Any addition of Receivables as part of the Collateral made
under subsection (a) shall satisfy the following conditions:

                  (i) On or before the tenth Business Day (the "Notice Date")
      prior to the Addition Date, the Debtor shall give the Administrative
      Agent, the Surety Bond Provider and the Collateral Agent written notice
      that such Additional Receivables will be included as Collateral as of the
      Addition Date and specifying the estimated Principal Balance of such
      Additional Receivables as of the Addition Cut-Off Date;

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                  (ii) On or prior to the Addition Closing Date, (x) the
      Servicer shall have caused its computer tapes and computer records to be
      marked clearly and unambiguously to show that the Seller has sold the
      Additional Receivables to the Debtor and (y) the Debtor shall have clearly
      and unambiguously marked (or caused to be marked) its general ledger and
      any computer tapes or other records to show that an undivided interest in
      the Additional Receivables has been pledged to the Collateral Agent;

                  (iii) (x) None of a Termination Event, a Potential Termination
      Event or the Termination Date shall have occurred and be continuing or
      would result from such increase, and (y) no Amortization Period is
      occurring or would result from such increase;

                  (iv) After giving effect to such increase, the sum of the Net
      Investment and the Interest Component of Related Commercial Paper shall
      not exceed the Facility Limit;

                  (v) The Surety Bond Provider, Bank of America and the
      Collateral Agent shall have received an executed certification by an
      authorized officer of the Servicer substantially in the form of Exhibit N,
      showing, among other things, the calculations necessary to support the
      calculation required pursuant to clause (iv) above and the items set forth
      in Section 2.2(a)(iii), (iv) and (vi) above;

                  (vi) (x) Each representation and warranty of the Debtor
      herein, in the Note Purchase Agreement and in any other Transaction
      Document shall be true and correct with respect to the Debtor, (y) each
      Receivable included in the Borrowing Base is an Eligible Receivable as of
      the date of such Funding and (z) no selection procedures adverse to the
      interests of the Secured Parties shall have been utilized in selecting the
      Additional Receivables;

                  (vii) The Debtor shall have deposited in the Reserve Account,
      or shall have given irrevocable instructions to the Company to withhold
      from the proceeds of such Funding and to deposit in the Reserve Account,
      an amount equal to the amount necessary to cause the amount on deposit in
      the Reserve Account to at least equal to Required Reserve Account Balance
      (calculated as if such increase shall have occurred);

                  (viii) The Surety Bond shall be in full force and effect;

                  (ix) The Debtor shall have delivered on or prior to the
      related Addition Cut-Off Date to the Collateral Agent the sole original,
      executed Contracts evidencing the Receivables;

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                  (x) The Debtor shall have delivered or caused to be delivered
      to the Collateral Agent on or prior to the related Addition Cut-Off Date
      the documents described in Section 2.13 of the Servicing Agreement;

                  (xi) On or prior to the Addition Closing Date, the Debtor
      shall have directed the Servicer, on behalf of the Debtor, to deliver to
      the Collateral Agent and Secured Parties (x) a computer file or microfiche
      list containing a true and complete list of all Additional Receivables
      identified by account number and by Principal Balance of such Additional
      Receivables as of the Addition Cut-Off Date, or (y) a true and complete
      list of all Receivables, including the Additional Receivables, identified
      by account number and by Principal Balance as of the Addition Cut-Off
      Date, which computer file or microfiche list shall be as of the Date of
      such Addition incorporated into and made part of this Agreement;

                  (xii) On or prior to the Addition Closing Date, the Debtor
      shall have delivered or caused to be delivered to the Collateral Agent an
      Interest Rate Cap relating to such Additional Receivables (with a copy to
      the Secured Parties);

                  (xiii) The Debtor shall have delivered to the Collateral
      Agent, Bank of America and the Surety Bond Provider (x) either (A) a
      certificate in the form attached hereto as Exhibit L to the effect that
      the UCC filing described in Section 2.1 with respect to the Additional
      Receivables have been made or (B) evidence of such UCC filings, and (y) an
      executed certification by an authorized officer of the Debtor
      substantially in the form of Exhibit O;

                  (xiv) The conditions to Funding as set forth in Section 2.1(c)
      of the Note Purchase Agreement shall have been satisfied."

            SECTION 6. AMENDMENTS TO SECTION 2.3.

            (a) Section 2.3 of the Security Agreement is hereby amended by
deleting the second paragraph thereof and replacing it with the following:

            "In addition, no later than December 29, 2000 and at any other time
            at which a state concentration level exceeds 10% of the aggregate
            Principal Balance of Receivables, the Seller shall be required to
            deliver a legal opinion satisfactory to the Surety Bond Provider and
            to S&P as to the status of the security interest of the Collateral
            Agent, on behalf of the Secured Parties, in the related Financed
            Vehicles or cause the certificate of title or other evidence of
            ownership of the related

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            Financed Vehicle to be revised to name the Collateral Agent on
            behalf of the Secured Parties as lienholder."

            (b) The third paragraph of Section 2.3 of the Security Agreement is
hereby deleted in its entirety.

            SECTION 7. AMENDMENT TO SECTION 2.5. Section 2.5 of the Security
Agreement is hereby amended by deleting subsection (ii) thereof and replacing it
with "(ii) the Debtor shall have entered into an Interest Rate Cap;".

            SECTION 8. AMENDMENT TO SECTION 3.2. Subsection (n) of Section 3.2
of the Security Agreement is hereby deleted and replaced with the following:

            "(n) The Debtor shall have at all times in effect an interest rate
            cap agreement or agreements with respect to the Receivables with a
            financial institution or institutions ("Cap Counterparties") and
            consisting of the following requirements (each interest rate cap
            agreement meeting the following requirements, an "Interest Rate Cap"
            and collectively, the "Interest Rate Caps"): (i) any such Cap
            Counterparty (with the exception of Bank of America, N.A. and First
            Union Capital Markets, Inc., provided that none of such entities has
            been downgraded by S&P or Moody's below its Required Rating (as
            defined in the Insurance Agreement)) shall be approved by the Surety
            Bond Provider, Moody's & S&P, (ii) each Interest Rate Cap shall be
            documented in substantially in the form set forth hereto as Exhibit
            M; (iii) the strike rate of any Interest Rate Cap shall not be more
            than 7.5%; (iv) all amounts payable by the Cap Counterparty
            thereunder shall be required to be paid by such counterparty
            directly to the Collection Account; (v) the notional amount
            thereunder shall amortize according to the scheduled amortization of
            the Receivables funded on such Addition Closing Date assuming zero
            prepayments and zero defaults with respect to such Receivables; (vi)
            the Interest Rate Cap shall cover at least 100% of the Net
            Investment and must be in effect for at least as long as the latest
            maturing Receivable securing the Net Investment; and (vii) the
            effective date shall be no later than the Addition Closing Date."

            SECTION 9. AMENDMENT TO SECTION 6.1(D).

            (a) Subclause (i) of Section 6.1(d) of the Security Agreement is
hereby amended to read as follows (solely for convenience, changed text is
italicized):

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            "(i) the Net Investment exceeds the sum of (x) 93.0% of the
            Borrowing Base and (y) the amount on deposit in the Reserve Account
            for 30 consecutive days;".

            (b) Subclause (ii) of Section 6.1(m) of the Security Agreement is
hereby amended by adding "or any of its affiliates" following "the Seller" in
such subclause;

            (c) Subsection (o) of Section 6.1 of the Security Agreement is
hereby amended by replacing "45 months" with "60 months";

            (d) Subsection (v) of Section 6.1 of the Security Agreement is
hereby amended to delete the word "and" following the subsection.

            (e) Subsection (w) of Section 6.1 of the Security Agreement is
hereby amended to delete the period following the subsection and by replacing it
with a semi-colon.

            (f) Subsection (z) of Section 6.1 of the Security Agreement is
hereby amended to delete the period following the subsection.

            (g) Section 6.1 of the Security Agreement is hereby amended to add
the following Subsections (aa) and (ab):

            "(aa) the Monthly Extension Rate for the Seller's total managed
            portfolio averaged over any three consecutive Collection Periods
            shall exceed 2.25%; and"

            "(ab) a Servicer Event of Default shall have occurred and be
            continuing."

            SECTION 10. AMENDMENT TO SECTION 6.3.

            (a) Subsection (a) of Section 6.3 of the Security Agreement is
hereby amended to read as follows (solely for convenience, changed text is
italicized):

            "(a) at any time the Net Investment exceeds the sum of (i) 93.0% of
            the Borrowing Base and (ii) the amount on deposit in the Reserve
            Account and such condition continues uncured;".

            SECTION 11. AMENDMENT TO SECTION 7.8. Section 7.8(a) of the Security
Agreement is hereby amended to read as follows (solely for convenience, new text
is italicized):

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            (a) The Collateral Agent, effective upon the Servicing Transfer, is
hereby irrevocably appointed as agent of the Secured Parties to hold and
maintain physical possession of the Custodian Files in accordance with this
Agreement and the Servicing Agreement and the Collateral Agent hereby accepts
such appointment. The Custodian Files are to be delivered to the Collateral
Agent by or on behalf of the Debtor within two (2) Business Days preceding the
Servicing Transfer or date of a Subsequent Funding, as the case may be, with
respect to each Receivable on the date of the Servicing Transfer or the date of
a Subsequent Funding, PROVIDED, HOWEVER, THAT IF APPLICATION HAS BEEN MADE FOR
THE ISSUANCE OF THE ORIGINAL CERTIFICATE OF TITLE OR OTHER EVIDENCE OF LIEN AND
SUCH ORIGINAL CERTIFICATE OF TITLE OR OTHER EVIDENCE OF LIEN HAS NOT YET BEEN
ISSUED AT THE TIME THE CUSTODIAN FILES ARE DELIVERED TO THE COLLATERAL AGENT,
THERE SHALL BE DELIVERED AS PART OF THE CUSTODIAN FILES COPIES OF ALL
CORRESPONDENCE WITH THE APPROPRIATE STATE TITLE REGISTRATION AGENCY, AND ALL
ENCLOSURES THERETO FOR THE ISSUANCE OF THE ORIGINAL CERTIFICATE OF TITLE OR
OTHER EVIDENCE OF LIEN FOR THE RELATED FINANCED VEHICLE, AND THE ORIGINAL
CERTIFICATE OF TITLE OR OTHER EVIDENCE OF LIEN SHALL BE DELIVERED TO THE
COLLATERAL AGENT PROMPTLY UPON RECEIPT THEREOF BY THE SELLER BUT IN NO EVENT
LATER THAN 120 DAYS FOLLOWING THE DATE OF THE SERVICING TRANSFER OR THE DATE OF
THE APPLICABLE SUBSEQUENT FUNDING, AND PROVIDED, FURTHER, THAT THE FAILURE TO SO
DELIVER THE ORIGINAL CERTIFICATE OF TITLE OR OTHER DOCUMENT EVIDENCING THE
SELLER'S STATUS AS LIENHOLDER SHALL BE CONSIDERED A BREACH OF THE REPRESENTATION
AND WARRANTY SET FORTH IN SECTION 3.1(Q) HEREOF AS OF SUCH 120 TH DAY AND THE
DEBTOR SHALL MAKE THE PAYMENTS IN RESPECT OF THE RELATED RECEIVABLE AS REQUIRED
BY THE LAST PARAGRAPH OF SECTION 3.1.

            SECTION 12. EXHIBITS L, M, N AND O. The Security Agreement is
hereby amended to add Exhibit L, Exhibit M, Exhibit N and Exhibit O, which such
exhibits are attached hereto. The table of exhibits for the Security Agreement
is hereby amended to add these exhibits and their descriptions as follows:

      "Exhibit L      Form of Certificate as to UCC Filing
       Exhibit M      Form of Interest Rate Cap Agreement
       Exhibit N      Form of Servicers' Officer's Certificate as to Additional
                      Receivables
       Exhibit O      Form of Debtor's Officer's Certificate as to Additional
                      Receivables".

            SECTION 13. EXHIBIT F. Exhibit F to the Security Agreement, and the
description thereof in the table of exhibits, is hereby deleted and replaced
with "[Reserved]."

            SECTION 14. REFERENCES. All references in the Security Agreement to
"ALAC" are hereby amended to refer to "FISC", all references to "Norwest" are
hereby amended to refer to Wells Fargo, all references to "Norwest Bank
Minnesota, National Association" are hereby amended to refer to "Wells Fargo
Bank Minnesota, National Association", all references to

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NationsBank, N.A. are hereby amended to refer to Bank of America, N.A., and
all references to NationsBank are hereby amended to refer to Bank of America.

            SECTION 15. CONDITION PRECEDENT. Notwithstanding anything herein to
the contrary, this amendment shall not become effective until such time as all
Collateral existing as of the date hereof under the Security Agreement is
subject to an Interest Rate Cap with a strike rate of no more than 7.5%.

            SECTION 16. LIMITED SCOPE. This amendment is specific to the
circumstances described above and does not imply any future amendment or waiver
of rights allocated to the Company, the Debtor, the Seller, the Collateral
Agent, the Reserve Account Agent, or the Surety Bond Provider under the Security
Agreement.

            SECTION 17. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

            SECTION 18. SEVERABILITY; COUNTERPARTS. This Amendment may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which when taken together shall constitute one and the same
instrument. Any provisions of this Amendment which are 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 19. RATIFICATION. Except as expressly affected by the
provisions hereof, the Security Agreement as amended shall remain in full force
and effect in accordance with its terms and is hereby ratified and confirmed by
the parties hereto. On and after the date hereof, each reference in the Security
Agreement to "this Agreement", "hereunder", "herein" or words of like import
shall mean and be a reference to the Security Agreement as amended by this
Amendment.

                                       10
<PAGE>
            IN WITNESS WHEREOF, the parties hereto have executed and delivered
this Amendment Number 3 as of the date first written above.

                                 FIRST INVESTORS AUTO RECEIVABLES
                                   CORPORATION, as Debtor

                                 By:___________________________________
                                     Name:
                                     Title:

                                 FIRST INVESTORS FINANCIAL
                                   SERVICES, INC. as Seller

                                 By:___________________________________
                                     Name:
                                     Title:
<PAGE>
                                 MBIA INSURANCE CORPORATION
                                 as Surety Bond Provider

                                 By:___________________________________
                                     Name:
                                     Title:

                                       12
<PAGE>
                                 WELLS FARGO BANK MINNESOTA,
                                   NATIONAL ASSOCIATION
                                   as Collateral Agent

                                 By:___________________________________
                                     Name:
                                     Title:

                                       13
<PAGE>
                                 BANK OF AMERICA, N.A.
                                  individually and as Reserve Account Agent

                                 By:___________________________________
                                     Name:
                                     Title:

                                       14
<PAGE>
                                 ENTERPRISE FUNDING CORPORATION,
                                  as Company

                                 By:___________________________________
                                     Name:
                                     Title:

                                       15
<PAGE>
                     EXHIBIT L TO SECURITY AGREEMENT

                                 CERTIFICATE OF
                  FIRST INVESTORS AUTO RECEIVABLES CORPORATION

TO THE PARTIES ON
THE ATTACHED SCHEDULE I

                  Re: First Investors Auto Receivables Corporation
                  Automobile Receivables Financing Facility/Supplemental
                  Conveyance No. [ ]

      Ladies and Gentlemen:

      Reference is made to Section 2.2 (b)(xiii)(x) of the Security Agreement
dated as of October 22, 1996, (as amended and supplemented, the "Agreement").
Capitalized terms used herein and not otherwise defined shall have the meaning
assigned to them in the Agreement. With respect to Supplemental Conveyance No. [
] ("Supplemental Conveyance") pursuant to the Agreement, the undersigned hereby
certifies that the UCC filings required pursuant to Section 2.1 of the Agreement
have been made as of the Addition Closing Date relating to such Supplemental
Conveyance.

Dated this [ ] day of [       ], [    ].

                                    FIRST INVESTORS AUTO RECEIVABLES CORPORATION

                                    By ______________________________
                                    Authorized Officer

                                       1
<PAGE>
                                   SCHEDULE I

Bank of America, N.A.
100 North Tryon Street
Charlotte, North Carolina 28255
Attention: Global Asset Securitization

MBIA Insurance Corporation
113 King Street
Armonk, NY 10504

Moody's Investors Service
99 Church Street
New York, NY 10007

Standard & Poor's Ratings Services,
a division of The McGraw-Hill Companies,
Inc. 55 Water Street
New York, NY 10041

Wells Fargo Bank Minnesota, National Association
Wells Fargo Center
Sixth & Marquette
Minneapolis, MN 55479

                                       2
<PAGE>
                         EXHIBIT N TO SECURITY AGREEMENT

                                 CERTIFICATE OF
                     FIRST INVESTORS SERVICING CORPORATION

TO THE PARTIES ON THE
ATTACHED SCHEDULE I

                  Re: First Investors Auto Receivables Corporation
                  Automobile Receivables Financing Facility/Supplemental
                  Conveyance No. [ ]

      Ladies and Gentlemen:

      Reference is made to Section 2.2 (b)(v) of the Security Agreement dated as
of October 22, 1996, (as amended and supplemented, the "Agreement"). Capitalized
terms used herein and not otherwise defined shall have the meaning assigned to
them in the Agreement. All references herein to Additional Receivables shall
mean those Additional Receivables being funded pursuant to Supplemental
Conveyance No. [ ]. With respect to Supplemental Conveyance No. [ ]
("Supplemental Conveyance") pursuant to the Agreement, the undersigned, on
behalf of First Investors Servicing Corporation, hereby certifies:

      1. After giving effect to the Additional Receivables, the sum of the Net
Investment and the Interest Component of Related Commercial Paper does not
exceed the Facility Limit, as evidenced by the following calculation:

                  [Calculation]

      2. After giving effect to the Additional Receivables, the Net Investment
is not greater than the Noteholder's Percentage of the Borrowing Base, as
evidenced by the following calculation:

                  [Calculation]

      3. After giving effect to the Additional Receivables, the amount on
deposit in the Reserve Account is at least equal the Required Reserve Account
Balance, as evidenced by the following calculation:

                  [Calculation]

                                       1
<PAGE>
      4. The weighted average original term to maturity of the Additional
Receivables are at least one month greater than the weighted average remaining
term to maturity of the Additional Receivables, as evidenced by the following
calculation:

                  [Calculation]

      5. First Investors Servicing Corporation has caused its computer tapes and
computer records to be marked clearly and unambiguously to show that the Seller
has sold the Additional Receivables to the Debtor.

      6. First Investors Servicing Corporation has delivered to the Collateral
Agent and Secured Parties (x) a computer file or microfiche list containing a
true and complete list of all Additional Receivables identified by account
number and by Principal Balance of such Additional Receivables as of the
Addition Cut-Off Date, or (y) a true and complete list of all Receivables,
including the Additional Receivables, identified by account number and by
Principal Balance as of the Addition Cut-Off Date.

Dated this [  ] day of [      ], [    ].

                                    FIRST INVESTORS SERVICING CORPORATION

                                    By__________________________
                                    Authorized Officer

                                       2
<PAGE>
                                   SCHEDULE I

Bank of America, N.A.
100 North Tryon Street
Charlotte, North Carolina 28255
Attention: Global Asset Securitization

MBIA Insurance Corporation
113 King Street
Armonk, NY 10504

Wells Fargo Bank Minnesota, National Association
Wells Fargo Center
Sixth & Marquette
Minneapolis, MN 55479

                                       3
<PAGE>
                         EXHIBIT O TO SECURITY AGREEMENT

                                 CERTIFICATE OF
                  FIRST INVESTORS AUTO RECEIVABLES CORPORATION

TO THE PARTIES ON THE
ATTACHED SCHEDULE I

                  Re: First Investors Auto Receivables Corporation
                  Automobile Receivables Financing Facility/Supplemental
                  Conveyance No. [ ]

      Ladies and Gentlemen:

      Reference is made to Section 2.2 (b)(xiii)(y) of the Security Agreement
dated as of October 22, 1996, (as amended and supplemented, the "Agreement").
Capitalized terms used herein and not otherwise defined shall have the meaning
assigned to them in the Agreement. All references herein to Additional
Receivables shall mean those Additional Receivables being funded pursuant to
Supplemental Conveyance No. [ ]. With respect to Supplemental Conveyance No. [ ]
("Supplemental Conveyance") pursuant to the Agreement, the undersigned, on
behalf of First Investors Auto Receivables Corporation, hereby certifies:

      1. First Investors Auto Receivables Corporation has clearly and
unambiguouslymarked (or caused to be marked) its general ledger and any computer
tapes or other records to show that an undivided interest in the Additional
Receivables has been pledged to the Collateral Agent;

      2. None of a Termination Event, a Potential Termination Event or the
Termination Date has occurred or is continuing or would result from the funding
of the Additional Receivables on the Addition Closing Date, and no Amortization
Period is occurring or would result from the funding of the Additional
Receivables on the Addition Closing Date.

      3. (x) The representations and warranties of the Debtor in the Security
Agreement, in the Note Purchase Agreement and in any other Transaction Document
are true and correct with respect to the Debtor, (y) each Receivable included in
the Borrowing Base is an Eligible Receivable as of the date of such Funding and
(z) no selection procedures adverse to the interests of the Secured Parties have
been utilized in selecting the Additional Receivables.

      4. First Investors Auto Receivables Corporation has deposited in the
Reserve Account, or has given irrevocable instructions to the Company to
withhold from the proceeds of the current Funding and to deposit in the Reserve
Account, an amount equal to the amount necessary to cause

                                       1
<PAGE>
the amount on deposit in the Reserve Account to at least equal to Required
Reserve Account Balance.

      5. The Surety Bond is in full force and effect.

      6. First Investors Auto Receivables Corporation has delivered on or prior
to the related Addition Cut-Off Date to the Collateral Agent the sole original,
executed Contracts evidencing the Receivables.

      7. First Investors Auto Receivables Corporation has delivered or caused to
be delivered to the Collateral Agent on or prior to the related Addition Cut-Off
Date the documents described in Section 2.13 of the Servicing Agreement.

      8. First Investors Auto Receivables Corporation has delivered or caused to
be delivered to the Collateral Agent an Interest Rate Cap relating to the
Additional Receivables (with a copy to the Secured Parties).

      9. The conditions to Funding as set forth in Section 2.1(c) of the Note
Purchase Agreement have been satisfied.

      10. First Investors Auto Receivables Corporation hereby grants grants to
the Collateral Agent, for the benefit of the Secured Parties, a security
interest in and continuing Lien on all of its right, title and interest in, to
and under (i) all Additional Receivables, which such Additional Receivables are
listed on Schedule I attached hereto, all monies due or to become due with
respect to the Additional Receivables, whether such amounts are considered
accounts, general intangibles or other property, and all monies, instruments,
securities or investments of any type or description on deposit in or credited
to the Collection Account at any time; (ii) the security interests in the
Financed Vehicles granted by Obligors pursuant to the related Additional
Receivables and any accessions thereto; (iii) any proceeds from claims on any
physical damage, credit life, credit disability, VSI Insurance or other
insurance policies covering Financed Vehicles or Obligors and any other
Liquidation Proceeds; (iv) any Interest Rate Cap, including the right to payment
under any such Interest Rate Cap or other hedging arrangement; and (v) the
proceeds of any and all of the foregoing.

Dated this [  ] day of [      ], [    ].

                                    FIRST INVESTORS AUTO RECEIVABLES CORPORATION

                                    By__________________________
                                    Authorized Officer

                                       2
<PAGE>
                                   SCHEDULE I

Bank of America, N.A.
100 North Tryon Street
Charlotte, North Carolina 28255
Attention: Global Asset Securitization

MBIA Insurance Corporation
113 King Street
Armonk, NY 10504

Wells Fargo Bank Minnesota, National Association
Wells Fargo Center
Sixth & Marquette
Minneapolis, MN 55479

                                        3

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