Document:

AMENDMENT NUMBER 4 TO
                               SECURITY AGREEMENT

         AMENDMENT NUMBER 4 TO SECURITY AGREEMENT (this  "Amendment"),  dated as
of March 8, 2001 by and among UNION ACCEPTANCE FUNDING  CORPORATION,  an Indiana
corporation,  as Seller (in such capacity, the "Seller"),  UAFC-1 CORPORATION, a
Delaware  corporation,  as  debtor  (in  such  capacity,  the  "Debtor"),  UNION
ACCEPTANCE CORPORATION, an Indiana corporation ("UAC"),  individually and in its
capacity  as  collection  agent  (in such  capacity,  the  "Collection  Agent"),
ENTERPRISE FUNDING CORPORATION,  a Delaware corporation (the "Company") and BANK
OF  AMERICA,   N.A.,  a  national  banking   association  ("Bank  of  America"),
individually  and as collateral agent for the Company and the Bank Investors (in
such capacity,  the "Collateral Agent") amending that certain Security Agreement
dated as of May 25, 2000 (the "Security Agreement").

         WHEREAS,  the Seller,  the  Debtor,  UAC,  the  Collection  Agent,  the
Company,  Bank of America and the  Collateral  Agent are parties to the Security
Agreement  dated  as of May 25,  2000 (as same my be  amended,  supplemented  or
otherwise modified from time to time, the "Security Agreement");

         WHEREAS,  the parties  have agreed to amend the  Security  Agreement as
hereinafter provided;

         NOW THEREFORE the parties hereto agree as follows:

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

         AMENDMENT.  The definition of  "Noteholder's  Percentage"  set forth in
Section  1.1  of the  Security  Agreement  shall  be  amended,  solely  for  the
Determination  Date  occurring on March 8, 2001,  by deleting it in its entirety
and restating it as follows:

         "The Noteholder's Percentage shall mean 98.25%."

         FULL FORCE AND EFFECT.  Except as  specifically  set forth herein,  the
Security  Agreement  is and shall be, in full force and effect and are hereby in
all respects ratified and confirmed.

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

         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.

         EFFECTIVENESS.  This  amendment  shall become  effective as of the date
first  written above when (i)  counterparts  of this  Amendment  shall have been
executed by each of the Seller,  Debtor, UAC, the Collection Agent, the Company,
Bank of America and the  Collateral  Agent and (ii) the  Collateral  Agent shall
have received a fully executed copy of this Amendment.

              [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Amendment Number 4 as of the date first written above.

                                          ENTERPRISE FUNDING CORPORATION,
                                            as Company

                                          By: /s/ Tony Wong
                                              ----------------------------------
                                              Name:  Tony Wong
                                              Title: Vice President

                                          UAFC-1 CORPORATION,
                                            as Debtor

                                          By: /s/ Leeanne W. Graziani
                                              ----------------------------------
                                              Name:  Leeanne W. Graziani
                                              Title: President

                                          UNION ACCEPTANCE FUNDING
                                           CORPORATION, as Seller

                                          By: /s/ Rick A. Brown
                                              ----------------------------------
                                              Name:  Rick A. Brown
                                              Title: Vice President

<PAGE>

                                          UNION ACCEPTANCE CORPORATION,
                                            individually and as Collection Agent

                                          By: /s/ Melanie S. Otto
                                              ----------------------------------
                                              Name:  Melanie S. Otto
                                              Title: Vice President

                                          BANK OF AMERICA, N.A.,
                                            individually and as Collateral Agent
                                           and Bank Investor

                                          By: /s/ Christopher Young
                                              ----------------------------------
                                              Name:  Christopher Young
                                              Title:Exhibit 4.11

                     FORM OF SUBSCRIPTION RIGHTS CERTIFICATE

                          UNION ACCEPTANCE CORPORATION
               SUBSCRIPTION RIGHTS CERTIFICATE FOR RIGHTS OFFERING
                FOR HOLDERS OF RECORD ON _________________, 2001

---------------------------------
CERTIFICATE NUMBER

---------------------------------               -------------------------------
RIGHTS                                          RECORD DATE SHARES OF
                                                CLASS A COMMON STOCK

---------------------------------               -------------------------------
SHARES ELIGIBLE TO SUBSCRIBE                    RECORD DATE SHARES OF
                                                CLASS B COMMON STOCK

This Certifies that:

                        ---------------------------------
                                 Name of Holder

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

                        ---------------------------------
                                     Address

is the registered  holder of the number  (indicated above) of Rights to purchase
shares of Class A Common Stock, no par value, of Union  Acceptance  Corporation,
an  Indiana  corporation  (the  "Company"),  upon the terms and  subject  to the
conditions and limitations set forth herein.

     The Company is conducting a rights offering (the "Rights  Offering")  which
entitles the holders of shares of the Company's  Class A Common  Stock,  without
par value (the "Class A Common  Stock"),  and Class B Common Stock,  without par
value  (the  "Class  B  Common   Stock"),   as  of  the  close  of  business  on
_________________________,  2001 (the "Record Date") to receive one right (each,
a "Right")  for each share of Class A Common Stock and Class B Common Stock held
of record on the Record Date.  Holders of Rights are  entitled to subscribe  for
and  purchase  one share of Class A Common Stock for each Right held (the "Basic
Subscription  Right") at a subscription  price of  $___________  per share.  Set
forth  above is the number of shares of Class A Common  Stock and Class B Common
Stock held by the holder hereof as of the Record Date,  and the number of shares
to which such holder is entitled to subscribe pursuant to the Basic Subscription
Right.

     The holder hereof may be entitled to purchase  additional shares of Class A
Common Stock in the offering if the holder's Basic Subscription Rights are fully
exercised and if so indicated in the holder's subscription documents, subject to
the following limitations ("Oversubscription Right"):

     (a)  Additional  shares  will only be  available  for  subscription  to the
          extent that the Maximum  Offering  exceeds the total  number of shares
          issued  in  respect  of  Basic  Subscription  Rights  and the  minimum
          purchase  rights  granted to standby  purchasers in the offering.  The
          "Maximum  Offering"  is  16,000,000  shares  of Class A Common  Stock,
          unless  the  Company's  Board of  Directors,  in its sole  discretion,
          increases the maximum number of shares to up to  17,600,000,  in which
          event the Maximum  Offering is the number of shares so  stipulated  by
          the board of directors; and

<PAGE>

     (b)  To the extent  that  additional  shares are  available  to allocate to
          Oversubscription  Rights  but are not  sufficient  to  honor  all duly
          exercised  Oversubscription  Rights,  the  available  shares  will  be
          prorated and allocated to holders exercising  Oversubscription  Rights
          on the basis of the number of Basic  Subscription  Rights exercised by
          the holders exercising Oversubscription Rights.

If the  foregoing  proration  results in the holder  being  allocated  a greater
number of shares  than such  holder  subscribed  for,  then the  holder  will be
allocated only the number of shares for which the holder subscribed.

     For a more complete  description  of the terms and conditions of the Rights
Offering,  please refer to the Prospectus dated  ___________________,  2001 (the
"Prospectus"),  which  is  incorporated  herein  by  reference.  Copies  of  the
Prospectus  are available  upon request from D.F.  King & Co.,  Inc.  (toll free
(800) 859-8509.

     This Subscription  Rights Certificate (or a Notice of Guaranteed  Delivery)
must be received  by  Computershare  Trust  Company of New York,  together  with
payment in full of the subscription  price by 5:00 p.m.,  Eastern Standard Time,
on ______________,  2001 (unless extended in the sole discretion of the Company)
(as it may be extended,  the "Expiration  Date"). Any Rights not exercised prior
to the  Expiration  Date will be null and void. Any  subscription  for shares of
Class A Common Stock in the Rights Offering made hereby is irrevocable.

     The Rights  represented  by this  Subscription  Rights  Certificate  may be
exercised by duly  completing  Form 1. The Rights may only be transferred to the
holder's  (or if the  holder is a  broker,  dealer or  nominee,  the  beneficial
owner's)  Affiliate  or  Related  Party  (as  such  terms  are  defined  in  the
Prospectus) by duly  completing  Form 2. Each of these forms is set forth on the
reverse  hereof.  Rights  holders  are  advised  to review  the  Prospectus  and
instructions,  copies of which are available from D.F. King & Co., Inc.,  before
exercising or transferring their Rights.

     THIS  SUBSCRIPTION  RIGHTS  CERTIFICATE  IS NOT  TRANSFERABLE  EXCEPT  TO A
TRANSFEREE  WHO IS AN AFFILIATE OR RELATED PARTY OF THE HOLDER OR, IF THE HOLDER
IS A DEALER,  BROKER,  TRUST COMPANY OR OTHER  NOMINEE,  AN AFFILIATE OR RELATED
PARTY OF THE BONA FIDE BENEFICIAL OWNER.

<PAGE>

SUBSCRIPTION PRICE: $__________ PER SHARE

     The registered  owner whose name is inscribed  hereon,  or its assigns,  is
entitled to subscribe for shares of Class A Common Stock of the Company upon the
terms and subject to the  conditions  set forth herein and in the Prospectus and
the instructions relating to the use hereof.

     The Rights may be combined or divided and to the limited  extent  permitted
hereby,  transferred,  only  on the  books  of  the  Company  maintained  by the
Subscription Agent at the office of Computershare  Trust Company of New York. If
the  number of  transferred  Rights  would  otherwise  allow the  purchase  of a
fractional  share,  the number of shares which may be purchased  must be rounded
down to the nearest  whole share (or any lesser number of whole shares) that may
be purchased with that number of Rights.

     Rights  holders should be aware that if they choose to exercise or transfer
only  part of their  Rights,  they may not  receive  a new  Subscription  Rights
Certificate  in  sufficient  time to exercise  the  remaining  Rights  evidenced
thereby.

                Computershare Trust
                Company of New York,
                As Subscription Agent

                By:____________________
                   Name:
                   Title:

             FORM 1 (on reverse of Subscription Rights Certificate)

EXERCISE AND SUBSCRIPTION:  The undersigned hereby irrevocably  exercises one or
more Rights to subscribe for shares of Class A Common Stock as indicated  below,
on the terms and subject to the conditions specified in the Prospectus,  receipt
of which is hereby acknowledged.

     (a) Number of shares  subscribed  for  pursuant  to the Basic  Subscription
Right ____ X $_____ = $_____  payment.  (One Right needed to  subscribe  for one
share.)

     (b) Number of shares subscribed for pursuant to the Oversubscription  Right
____ X $_____ = $_____ payment.

     (c) Total  Subscription  (sum of  payment  amounts  on lines (a) and (b)) =
$________ payment.*

METHOD OF PAYMENT (CHECK AND COMPLETE APPROPRIATE BOX(ES)):

     [ ] Check, bank draft, or U.S. postal money order payable to "Computershare
Trust Company of New York, as Subscription Agent" or

     [ ] Wire transfer directed to Harris Trust and Savings Bank,  Chicago,  IL,
ABA No. 071000288,for the account of Computershare Trust Company of New York, as
Subscription  Agent for Union  Acceptance  Corporation,  for  further  credit to
Account No. 227-938-8 (telephone number (212) 701-7624).

     (d) If the Rights being exercised  pursuant to the Basic Subscription Right
do not  constitute  all of the Rights  represented  by the  Subscription  Rights
Certificates (check only one):

     [ ]  Deliver  to the  undersigned  a new  Subscription  Rights  Certificate
evidencing the remaining Rights to which the undersigned is entitled.

     [ ] Deliver a new  Subscription  Rights  Certificate in accordance with the
Form 2 instructions  of the  undersigned  (which include any required  signature
guarantees).

     [ ] Do not deliver any new Subscription Rights Certificates to me.

     (e) [ ] Check here if Rights are being exercised  pursuant to the Notice of
Guaranteed Delivery delivered to the Subscription Agent prior to the date hereof
and complete the following:

         Name(s) of Registered Holder(s) ____________________________________
         Window Ticket Number (if any) ______________________________________
         Date of Execution of Notice of Guaranteed Delivery _________________
         Name of Institution Which Guaranteed Delivery ______________________

* If the aggregate Subscription Price enclosed or transmitted is insufficient to
purchase  the total  number of shares  included  in lines (a) and (b), or if the
number of shares  being  subscribed  for is not  specified,  the  Rights  holder
exercising  this  Subscription  Rights  Certificate  shall  be  deemed  to  have
subscribed  for the maximum  amount of shares that could be subscribed  for upon
payment of such amount. If the number of shares to be subscribed for pursuant to
the  Oversubscription  Right  is  not  specified  and  the  amount  enclosed  or
transmitted   exceeds  in  aggregate  the  Subscription  Price  for  all  shares
represented by this Subscription Rights Certificate (the "Subscription Excess"),
the Rights holder  exercising  this  Subscription  Rights  Certificate  shall be
deemed to have exercised the Oversubscription  Right to purchase,  to the extent
available,  that number of shares of Class A Common  Stock equal to the quotient
obtained by dividing the Subscription Excess by the Subscription Price,  subject
to proration as  described in the  Prospectus.  To the extent any portion of the
aggregate Subscription Price enclosed or transmitted remains after the foregoing
procedures,  such funds shall be mailed to the  subscriber  without  interest or
deduction as soon as practicable.

Holder's Signature __________________  Telephone No.  (___)________________

             FORM 2 (on reverse of Subscription Rights Certificate)

TO TRANSFER SOME OR ALL OF YOUR RIGHTS TO AN AFFILIATE OR RELATED PARTY
The Rights are not  transferable  except to an Affiliate or Related Party of the
beneficial  owner.  An  "Affiliate"  means a  person,  company,  trust  or other
business   entity   that   directly,   or   indirectly,   through  one  or  more
intermediaries,  controls the beneficial  owner, is controlled by the beneficial
owner,  or with whom the beneficial  owner is under common  control.  A "Related
Party" means (1) any member of the beneficial  owner's immediate  family,  which
includes the beneficial owner's spouse,  children,  siblings and parents, (2) an
entity owned or  controlled by the  beneficial  owner and/or one or more Related
Parties of the beneficial  owner, (3) a trust settled by the beneficial owner or
a member of the beneficial  owner's  immediate  family or the  beneficiaries  of
which  include  the  beneficial  owner or a  member  of the  beneficial  owner's
immediate  family, or (4) if the beneficial owner is a trust, the settlor or any
beneficiary of such trust.

(a)  TO BE COMPLETED BY HOLDERS OTHER THAN BROKERS,  DEALERS AND OTHER NOMINEES.
     The undersigned  holder hereby  certifies to the Company and  Computershare
     Trust  Company  of New York  that  the  transferee  identified  below is an
     Affiliate or Related  Party of the holder.  The  undersigned  holder hereby
     instructs  Computershare  Trust  Company  of  New  York  to  issue  to  the
     transferee  indicated below a new  Subscription  Rights  Certificate in the
     amount indicated below and to the address indicated below. If no address is
     provided  below,  then the  Subscription  Rights  Certificate  representing
     transferred Rights will be returned to the address of the holder.

         Name of Transferee: __________________________________________________
         Address of Transferee:  ______________________________________________
                                 ______________________________________________

         Number of Rights to be Transferred: __________________________________

         --------------------------------------
         Holder's Signature

<PAGE>

(Please sign exactly as your name appears  above.  Joint owners should each sign
personally.  Where  applicable,   please  indicate  your  official  position  or
representative capacity.)

<PAGE>

YOU  MUST  HAVE  YOUR  SIGNATURE  GUARANTEED  IF YOU  WISH TO HAVE  YOUR  RIGHTS
TRANSFERRED.

         Signature Guaranteed By:  ______________________________________

(b)  TO BE COMPLETED BY BROKERS,  DEALERS AND OTHER  NOMINEES.  The  undersigned
     broker, dealer or nominee hereby certifies to the Company and Computershare
     Trust  Company of New York that the  beneficial  owner of the Rights hereby
     transferred  has  duly  certified  to  the  undersigned,  the  Company  and
     Computershare  Trust  Company  of New York that the  transferee  identified
     below is an  Affiliate  or Related  Party of the  beneficial  owner and has
     instructed the undersigned  broker,  dealer or nominee and Computershare of
     New York to  issue to the  transferee  indicated  below a new  Subscription
     Rights  Certificate  evidencing  Rights in the amount  indicated  below. On
     behalf of such beneficial owner, the undersigned broker,  dealer or nominee
     hereby  instructs  Computershare  Trust Company of New York to issue to the
     transferee  indicated below a new  Subscription  Rights  Certificate in the
     amount indicated below and to the address indicated below. If no address is
     provided  below,  then the  Subscription  Rights  Certificate  representing
     transferred Rights will be returned to the address of the broker, dealer or
     nominee of the beneficial owner.

         Name of Transferee: __________________________________________________

         Address of Transferee:  ______________________________________________
                                _______________________________________________

         Number of Rights to be Transferred: __________________________________

         --------------------------------------
         Holder's Signature

<PAGE>

(Please sign exactly as your name appears  above.  Joint owners should each sign
personally.  Where  applicable,   please  indicate  your  official  position  or
representative capacity.)

     YOU MUST HAVE YOUR  SIGNATURE  GUARANTEED  IF YOU WISH TO HAVE YOUR  RIGHTS
TRANSFERRED.

         Signature Guaranteed By:  ______________________________________

             FORM 3 (on reverse of Subscription Rights Certificate)

DELIVERY  INSTRUCTIONS:  Address for mailing of stock or new Subscription Rights
Certificate or any cash payment in accordance with the Prospectus,  if different
from the address shown on the face of this Subscription Rights Certificate.

         Name: __________________________________________________

         Address:  ______________________________________________
                   ______________________________________________

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