Document:

<PAGE>

                                                                   Exhibit 10.33

                                                                  EXECUTION COPY

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                          SALE AND SERVICING AGREEMENT

                                     among

                            AMERICREDIT ONE TRUST,
                                   Borrower,

                      AMERICREDIT FINANCIAL SERVICES, INC.,
                              Seller and Servicer,

                        AMERICREDIT FUNDING CORP. VI,
                                    Seller,

                      BANK ONE, NA (MAIN OFFICE COLUMBUS),
                     Backup Servicer and Collateral Agent,

                                       and

                      BANK ONE, NA (MAIN OFFICE CHICAGO),
                              Administrative Agent

                            Dated as of May 31, 2001

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<PAGE>

                               TABLE OF CONTENTS
                               -----------------

                                                                            Page
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<TABLE>
<CAPTION>
   ARTICLE I

   <C>              <S>               <C>                                                                            <C>
   Definitions
                    Section 1.1       Definitions ................................................................... 2
                    Section 1.2       Other Definitional Provisions ................................................. 2

   ARTICLE II

   Sale of Receivables and Asset Backed Securities
                    Section 2.1       Sale of Receivables ........................................................... 2
                    Section 2.1A      Sale of Asset Backed Securities ............................................... 3
                    Section 2.2       The Conveyed Assets; Nature of Transaction .................................... 3
                    Section 2.3       Further Encumbrance of Conveyed Assets; Additional Covenants
                                      of the Sellers................................................................. 4

   ARTICLE III

                    Conditions Precedent

                    Section 3.1       Conditions Precedent to the Effectiveness of this Agreement ................... 6
                    Section 3.2       Conditions Precedent to Each Receivables Sale ................................. 6
                    Section 3.3       Conditions Precedent to Each Asset Backed Securities Sale ..................... 9

   ARTICLE IV

   The Receivables
                    Section 4.1       Representations and Warranties of Sellers...................................... 11
                    Section 4.2       Repurchase Upon Breach......................................................... 11
                    Section 4.3       Custody of Receivable Files.................................................... 12
                    Section 4.4       Duties of Custodian With Respect to Receivable Files........................... 14
                    Section 4.5       Instructions; Authority to Act................................................. 16

   ARTICLE IV-A

   The Asset Backed Securities
                    Section 4A.1      Representations and Warranties of the Primary Seller........................... 16
                    Section 4A.2      Repurchase Upon Breach or Downgrade............................................ 16
</TABLE>

                                       i
<PAGE>

<TABLE>
<CAPTION>
<C>                 <S>              <C>                                                                             <C>
ARTICLE V

           Administration and Servicing of Receivables
                    Section 5.1      Appointment; Standard of Care; Duties of the Servicer............................ 17
                    Section 5.2      Collection of Receivable Payments; Modifications of Receivables;
                                     Lockbox Agreements............................................................... 18
                    Section 5.3      Realization Upon Receivables..................................................... 21
                    Section 5.4      Insurance........................................................................ 22
                    Section 5.5      Maintenance of Security Interests in Financed Vehicles........................... 22
                    Section 5.6      Covenants, Representations, and Warranties of Servicer........................... 25
                    Section 5.7      Purchase of Receivables Upon Breach of Covenant.................................. 27
                    Section 5.8      Total Servicing Fee; Payment of Certain Expenses by Servicer..................... 27
                    Section 5.9      Certain Servicer's Certificates.................................................. 27
                    Section 5.10     Annual Statement as to Compliance, Notice of Servicer
                                     Termination Event................................................................ 28
                    Section 5.12     Access to Certain Documentation and Information Regarding the
                                     Receivables...................................................................... 29
                    Section 5.13     Monthly Tape..................................................................... 29
                    Section 5.14     Retention and Termination of Servicer............................................ 30
                    Section 5.15     Fidelity Bond and Errors and Omissions Policy.................................... 30

ARTICLE VI

                    Collection Account; ABS Account; Distributions; Statements to Secured Parties
                    Section 6.1      Establishment of Collection Account and ABS Account.............................  30
                    Section 6.2      Receivables Reserve Account; ABS Reserve Account................................  33
                    Section 6.3      Certain Reimbursements to the Servicer..........................................  34
                    Section 6.4      Application of Collections......................................................  34
                    Section 6.5      Servicer Advances...............................................................  35
                    Section 6.6      Application of Funds from the Receivables Reserve Account and the ABS
                                     Reserve Account; Special Withdrawals from the Collection Account................  35
                    Section 6.7      Additional Deposits.............................................................  35
                    Section 6.8      Distributions...................................................................  36

ARTICLE VII

   The Sellers
                    Section 7.1      Representations and Warranties of Seller......................................... 39
                    Section 7.2      Existence........................................................................ 41
                    Section 7.3      Liability of Sellers; Indemnities................................................ 42
                    Section 7.4      Merger or Consolidation of, or Assumption of the Obligations of,
                                     Sellers.......................................................................... 42
                    Section 7.5      Limitation on Liability of Sellers and Others.................................... 43
</TABLE>

                                      ii
<PAGE>

<TABLE>
<CAPTION>
<C>     <S>                                                                                                              <C>
ARTICLE VIII

   The Servicer

        Section 8.1 Representations and Warranties of AFS, in its capacity as Servicer.................................. 43
        Section 8.2 Liability of Servicer; Indemnities.................................................................. 45
        Section 8.3 Merger or Consolidation of, or Assumption of the obligations of
the Servicer or Backup Servicer......................................................................................... 46
        Section 8.4 Limitation on Liability of the Servicer and the Backup Servicer..................................... 47
        Section 8.5 Delegation of Duties................................................................................ 47
        Section 8.6 Servicer and Backup Servicer Not to Resign.......................................................... 48

ARTICLE IX

   Default
        Section 9.1 Servicer Termination Event.......................................................................... 48
        Section 9.2 Consequences of a Servicer Termination Event........................................................ 49
        Section 9.3 Appointment of Successor............................................................................ 50
        Section 9.4 Notification to Secured Parties..................................................................... 51
        Section 9.5 Waiver of Past Defaults............................................................................. 51

   ARTICLE X

   Administrative Duties of the Servicer

        Section 10.1 Administrative Duties.............................................................................. 51
        Section 10.2 Records............................................................................................ 52
        Section 10.3 Additional Information to be Furnished to the Borrower............................................. 52

   ARTICLE XI

   Miscellaneous Provisions

        Section 11.1 Amendment.......................................................................................... 52
        Section 11.2 Protection of Title................................................................................ 53
        Section 11.3 Notices............................................................................................ 54
        Section 11.4 Assignment......................................................................................... 55
        Section 11.5 Limitations on Rights of Others.................................................................... 55
        Section 11.6 Severability....................................................................................... 55
        Section 11.7 Separate Counterparts.............................................................................. 55
        Section 11.8 Headings........................................................................................... 55
        Section 11.9 Assignment to Administrative Agent................................................................. 55
</TABLE>

                                      iii
<PAGE>

<TABLE>
<CAPTION>
<C>                <S>                                                                                                <C>
     Section 11.10 Bank One Roles; Limitation of Liability........................................................... 55
     Section 11.11 Non-petition Covenants............................................................................ 56
     Section 11.12 Independence of the Servicer...................................................................... 57
     Section 11.13 No Joint Venture.................................................................................. 57
     Section 11.14 Consents to Jurisdiction.......................................................................... 57
     Section 11.15 Trial by Jury Waived.............................................................................. 57
     Section 11.16 Governing Law..................................................................................... 58
     Section 11.17 No Recourse....................................................................................... 58

ANNEXES

     Annex A                 - Defined Terms

SCHEDULES

     Schedule A              - Intentionally Omitted
     Schedule B              - Schedule of Representations Relating to Receivables
     Schedule C              - Schedule of Representations Relating to Asset Backed Securities
     Schedule 3.1            - Conditions to Effectiveness of Agreement

EXHIBITS

     Exhibit A-1             - Form of Receivables Sale Agreement
     Exhibit A-2             - Form of ABS Sale Agreement
     Exhibit B-1             - Form of Servicer's Determination Date Certificate
     Exhibit B-2             - Form of Servicer's VFN Prepayment Date Certificate
     Exhibit C-1             - Form of Receivables Sale Notice
     Exhibit C-2             - Form of ABS Sale Notice
     Exhibit D-1             - Form of Servicer's Receivables Sale Date Certificate
     Exhibit D-2             - Form of Servicer's ABS Sale Date Certificate
     Exhibit E               - Form of Servicer's Acknowledgment
     Exhibit F               - Form of Semi-Annual Data Integrity Review
     Exhibit G               - Form of Schedule of ABS Information
</TABLE>

                                      iv
<PAGE>

     SALE AND SERVICING AGREEMENT, dated as of May 31, 2001 (this "Agreement"),
                                                                   ---------
among AmeriCredit One Trust, a Delaware business trust (the "Borrower"),
                                                             --------
AMERICREDIT FINANCIAL SERVICES, INC., a Delaware corporation ("AFS"), as a
                                                               ---
seller and as servicer (in such capacities, the "Primary Seller" and the
                                                 --------------
"Servicer", respectively), AmeriCredit Funding Corp. VI, a Delaware corporation,
 --------
as a seller ("AFC-VI" or the "Secondary Seller," and, together with the Primary
              ------          ----------------
Seller, the "Sellers," and each, a "Seller"), BANK ONE, NA (MAIN OFFICE
             -------                ------
COLUMBUS), a national banking association, as backup servicer (in such capacity,
the "Backup Servicer") and as collateral agent (in such capacity, the
     ---------------
"Collateral Agent"), and BANK ONE, NA (MAIN OFFICE CHICAGO), as administrative
 ----------------
agent (in such capacity, the "Administrative Agent").
                              --------------------

     WHEREAS, AFS is engaged in the business of originating and acquiring motor
vehicle retail installment sale contracts from motor vehicle dealers and third
party lenders and of servicing such contracts and the related receivables; and

     WHEREAS, AFS may, at its option, from time to time sell certain contracts
and the related receivables held by AFS to AFC-VI; and

     WHEREAS, the Borrower desires to enter into an agreement with the Sellers,
pursuant to which the Borrower may, at its option, from time to time purchase
from the Sellers such contracts and related receivables held by the Sellers and
certain asset-backed securities held by the Primary Seller; and

     WHEREAS, the Borrower desires to retain AFS as servicer of such purchased
contracts and receivables; and

     WHEREAS, AFS is willing to sell such contracts and such securities and is
willing to service all such contracts and receivables and to hold the Receivable
Files on behalf of the Administrative Agent;

     WHEREAS, the Borrower desires to obtain financing for its purchase of the
contracts and receivables and the securities;

     WHEREAS, (i) any Seller and the Borrower will from time to time, pursuant
to this Agreement, enter into a Receivables Sale Agreement, whereby the Sellers
will sell, transfer and assign to the Borrower on the applicable Receivables
Sale Date all of their rights, title and interests in and to additional
Receivables and (ii) the Primary Seller and the Borrower will from time to time,
pursuant to this Agreement, enter into ABS Sale Agreements, whereby the Primary
Seller will sell, transfer and assign to the Borrower on the applicable ABS Sale
Date all of its rights, title and interest in and to additional Asset Backed
Securities; and

     WHEREAS, the Borrower, the Administrative Agent, the Securities
Intermediary and several Secured Parties have entered into a Security and
Funding Agreement, dated as of May 31, 2001 (as supplemented or otherwise
modified and in effect from time to time being referred to hereinafter as the
"Security and Funding Agreement"), pursuant to which, among other things, the
 ------------------------------
Secured Parties party thereto from time to time will provide funding to the

<PAGE>

Borrower and the Borrower will pledge to the Administrative Agent for the
benefit of the Secured Parties all of its right, title and interest in the
Collateral, including, but not limited to, the Receivables, the Other Conveyed
Property and the Asset Backed Securities;

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

                                    ARTICLE I

                                   Definitions
                                   -----------
     Section 1.1 Definitions.
                 -----------

     As used herein, "Agreement" shall mean this Sale and Servicing Agreement,
as it may from time to time be amended, supplemented or otherwise modified in
accordance with the terms hereof. Unless the context otherwise requires, other
capitalized terms used herein and not otherwise defined shall have the meanings
assigned to such terms in Annex A hereto, which Annex A is incorporated by
reference herein.

     Section 1.2 Other Definitional Provisions.
                 -----------------------------

     (a) All terms defined in Annex A shall have such defined meanings when used
in any instrument governed hereby and in any certificate or other document made
or delivered pursuant hereto unless otherwise defined therein.

     (b) The principles of construction set forth in Annex A shall apply to this
Agreement.

                                   ARTICLE II

                 Sale of Receivables and Asset Backed Securities
                 -----------------------------------------------

     Section 2.1 Sale of Receivables. Subject to the satisfaction of the
                 -------------------
conditions precedent set forth in Article III hereof, in consideration of the
Borrower's delivery to or upon the order of the relevant Seller of the
Receivables Purchase Price therefor, the relevant Seller, on each Receivables
Sale Date, in each case pursuant to a Receivables Sale Agreement, shall sell,
transfer, assign, pledge, set over and otherwise convey to the Borrower, without
recourse (subject to the obligations set forth herein), all right, title and
interest of the relevant Seller in, to and under:

     (a) the Receivables sold on each such date, as listed in Schedule A to the
relevant Receivables Sale Agreement, and all moneys received thereon after the
Relevant Cutoff Date;

                                       2
<PAGE>

     (b) all security interests in the Financed Vehicles granted by Obligors
pursuant to the Receivables sold and any other interest of the relevant Seller
in such Financed Vehicles;

     (c) all proceeds and all rights to receive proceeds with respect to the
Receivables sold from claims on any physical damage, credit life or disability
insurance policies covering Financed Vehicles or Obligors and any proceeds from
the liquidation of such Receivables;

     (d) all rights of the relevant Seller against Dealers pursuant to Dealer
Agreements and/or Dealer Assignments;

     (e) all rights of the relevant Seller against Third-Party Lenders pursuant
to Third-Party Loan Purchase Agreements and/or Third-Party Lender Assignments.

     (f) all rights under any Service Contracts on the related Financed
Vehicles;

     (g) the related Receivables Files; and

     (h) all proceeds of any and all of the foregoing.

     Section 2.1A Sale of Asset Backed Securities. Subject to the satisfaction
                  -------------------------------
of the conditions precedent set forth in Article III hereof, in consideration of
the Borrower's delivery to or upon the order of the Primary Seller of the ABS
Purchase Price therefor, the Primary Seller, on each ABS Sale Date, in each case
pursuant to an ABS Sale Agreement, shall sell, transfer, assign, pledge, set
over and otherwise convey to the Borrower, without recourse, all right, title
and interest of the Primary Seller in, to and under the Asset Backed Securities
sold on each such date, as listed in Schedule A to the relevant ABS Sale
Agreement, and all distributions thereon and the security granted, and the
rights and benefits of the holder thereof, under the related ABS Documents.

     Section 2.2 The Conveyed Assets; Nature of Transaction.
                 ------------------------------------------

     (a) Any and all of the property described in the foregoing Section 2.1 is
                                                                -----------
referred to as the "Conveyed Property." Any and all of the property described in
the foregoing Section 2.1A is referred to as the "Conveyed Securities." The
              ------------
Conveyed Property and the Conveyed Securities are collectively referred to as
the "Conveyed Assets."

     (b) It is the intention of each of the Sellers that each sale and
assignment contemplated by this Agreement shall constitute a sale of the
Receivables, the Asset Backed Securities and other property from the Sellers to
the Borrower and the beneficial interest in and title to the Receivables, the
Asset Backed Securities and the Other Conveyed Property shall not be part of any
Seller's estate in the event of the filing of a bankruptcy petition by or
against such Seller under any bankruptcy law. In the event that, notwithstanding
the intent of each of the Sellers, the sale and assignment contemplated hereby
is held not to be a sale, this Agreement and each Receivables Sale Agreement and
each ABS Sale Agreement shall constitute a security

                                       3
<PAGE>

agreement, and each of the Sellers hereby grants to the Borrower a security
interest in all of the Conveyed Assets, whether now owned or hereafter acquired
and wherever located, to secure the prompt and complete payment of a loan deemed
to have been made in an amount equal to the purchase price of the Conveyed
Assets of such Seller, together with the other obligations of such Seller under
the Basic Documents to which such Seller is a party. At the request of the
Borrower or the Administrative Agent, the Sellers, at their expense, will take
all action necessary or advisable to perfect and protect such security interest,
free and clear of all Liens (other than the Lien of the Administrative Agent).

     Section 2.3 Further Encumbrance of Conveyed Assets; Additional Covenants of
                 ---------------------------------------------------------------
the Sellers.
-----------

     (a) Immediately upon the conveyance to the Borrower by a Seller of any item
of the Conveyed Assets, all right, title and interest of such Seller in and to
such item of Conveyed Assets shall terminate, and all such right, title and
interest shall vest in the Borrower.

     (b) Immediately upon the vesting of the Conveyed Assets in the Borrower,
the Borrower shall have the sole right to transfer, sell, pledge or otherwise
encumber, such Conveyed Assets. The Borrower shall grant a security interest in
the Conveyed Assets to secure the repayment of the Secured Obligations pursuant
to the Security and Funding Agreement.

     (c) Without limiting the foregoing, each of the Sellers covenants as
follows with respect to itself and the relevant property:

          (i) Liens in Force. The Financed Vehicle securing each Receivable
              --------------
shall not be released by such Seller in whole or in part from the security
interest granted under the Receivable, except upon payment in full of the
Receivable or as otherwise contemplated herein and such Seller shall not take or
permit any action inconsistent with the foregoing;

          (ii) No Impairment. Neither Seller shall do anything to impair the
               -------------
rights of the Borrower or the Secured Parties in the Receivables, the Dealer
Agreements, the Dealer Assignments, the Third-Party Loan Purchase Agreements,
the Third-Party Lender Assignments, the Insurance Policies or any other property
or interest comprising the Other Conveyed Property or the Asset Backed
Securities;

          (iii) No Amendment. Neither Seller shall take or permit any action to
                ------------
extend or otherwise amend the terms of any Receivable or Asset Backed Security
or amend or waive, or give any consent or vote under any related Contract or ABS
Documents, except in accordance with Section 5.2 hereof; and
                                     -----------

          (iv) Restrictions on Liens. Neither Seller shall: (i) create or incur
               ---------------------
or agree to create or incur, or consent to cause (upon the happening of a
contingency or otherwise) the creation, incurrence or existence of any Lien or
restriction on transferability of any Conveyed Assets, except for the Lien in
favor of the Administrative Agent for the benefit of the Secured Parties, and
the restrictions on transferability imposed by this Agreement or (ii) sign or
file under the Uniform Commercial Code of any jurisdiction any financing
statement or sign any security

                                       4
<PAGE>

agreement authorizing any secured party thereunder to file such financing
statement, with respect to any Conveyed Assets, except in each case any such
instrument solely securing the rights and preserving the Lien of the
Administrative Agent, for the benefit of the Secured Parties. Neither Seller
will take any action to cause any Receivable to be evidenced by an instrument
(as such term is defined in the Relevant UCC).

     (d) The Sellers will furnish or cause to be furnished to the Administrative
Agent (and the Administrative Agent promptly after receipt thereof shall forward
to each of the Secured Parties):

          (i) within 90 days after the end of each fiscal year of AmeriCredit,
the audited consolidated balance sheet and related statements of operations,
shareholders' equity and cash flows of AmeriCredit as of the end of and for such
year, setting forth in each case in comparative form the figures for the
previous fiscal year, all reported on by PricewaterhouseCoopers, LLC or other
independent public accountants of recognized national standing (without a "going
concern" or like qualification or exception and without any qualification or
exception as to the scope of such audit) to the effect that such consolidated
financial statements present fairly in all material respects the financial
condition and results of operations of AmeriCredit and its consolidated
subsidiaries on a consolidated basis in accordance with GAAP;

          (ii) within 45 days after the end of each of the first three fiscal
quarters of each fiscal year of AmeriCredit, the consolidated balance sheet and
related statements of operations of AmeriCredit as of the end of and for such
fiscal quarter and the then elapsed portion of the fiscal year, and statements
of cash flows for AmeriCredit for the then elapsed portion of the fiscal year,
setting forth in each case in comparative form the figures for the corresponding
period or periods of (or, in the case of the balance sheet, as of the end of)
the previous fiscal year, all certified by one of the financial officers of
AmeriCredit as presenting fairly in all material respects the financial
condition and results of its operations and its consolidated subsidiaries on a
consolidated basis in accordance with GAAP consistently applied, subject to
normal year-end audit adjustments and the absence of footnotes;

          (iii) promptly after the same become publicly available, copies of all
periodic and other reports (excluding the monthly 8-K filed for the
securitization vehicles for the securitizations of AmeriCredit and/or its
subsidiaries), proxy statements and other materials filed by AmeriCredit or any
subsidiary with the Securities and Exchange Commission, or any governmental
authority succeeding to any or all of the functions of said Commission, or with
any national securities exchange, or distributed by AmeriCredit to its
shareholders generally, as the case may be; and

          (iv) promptly following any request therefor, such other information
regarding the operations, business affairs and financial condition of
AmeriCredit or any subsidiary, or compliance with the terms of this Agreement,
as the Administrative Agent may reasonably request.

                                       5
<PAGE>

     (e) Registration of Asset Backed Securities. The Primary Seller when
         ---------------------------------------
conveying Asset Backed Securities to the Borrower shall cause such conveyed
Asset Backed Securities to be credited to the ABS Account and, if in physical
form, indorsed to the Securities Intermediary or indorsed in blank and delivered
to the Securities Intermediary. The Primary Seller shall notify the Borrower,
the Administrative Agent and the Secured Parties of any downgrade of any such
Asset Backed Securities or if any such securities are placed on credit watch.

     (f) Monthly Reports Regarding Asset Backed Securities. The Primary Seller
         -------------------------------------------------
shall cause any servicer certificate regarding the Asset Backed Securities and
all monthly reports regarding payments on Asset Backed Securities to be
delivered to the Administrative Agent within two (2) Business Days after the
issuance thereof.

                                  ARTICLE III

                             Conditions Precedent
                             --------------------

     Section 3.1 Conditions Precedent to the Effectiveness of this Agreement.
                 -----------------------------------------------------------
The effectiveness of this Agreement is subject to the following conditions
precedent (provided, however, that payment by the Borrower of the amounts
           --------  -------
referred to in clause (ii) below may be made out of the proceeds of the Initial
Funding):

          (i) the Borrower and the Administrative Agent shall have received, and
found satisfactory in form and substance, each of the Basic Agreements (other
than the Hedge Contracts, the Receivables Sale Agreements and the ABS Sale
Agreements which will be delivered in connection with the sale of Receivables or
Asset Backed Securities, as applicable), and each of the other documents,
certificates and opinions set forth in Schedule 3.1; and

          (ii) to the extent necessary, an amount in immediately available funds
shall have been received by the Administrative Agent from the Borrower for
deposit to the Receivables Reserve Account to cause the total amount then on
deposit therein to be equal to the Receivables Reserve Account Minimum and for
deposit to the ABS Reserve Account to cause the total amount then on deposit
therein to be equal to the ABS Reserve Account Minimum.

     Section 3.2 Conditions Precedent to Each Receivables Sale.
                 ---------------------------------------------

     The initial sale and each subsequent sale of Receivables shall be subject
to the further conditions precedent that:

          (i) the relevant Seller shall have provided the Borrower and the
Administrative Agent with a Receivables Sale Notice not later than one (1)
Business Day prior to the relevant Receivables Sale Date and shall have provided
any information reasonably requested by the Borrower and/or the Administrative
Agent with respect to the Receivables to be sold to the Borrower on such
Receivables Sale Date;

                                       6
<PAGE>

          (ii) the relevant Seller shall have caused the Servicer to provide the
     Borrower and the Administrative Agent with a Servicer's Receivables Sale
     Date Certificate not later than 12:30 P.M. (New York time) one (1) Business
     Day prior to the Receivables Sale Date, which Certificate shall set forth
     the Receivables Pool Balance as of the Reference Date, the Principal
     Balance of the Receivables to be sold, and such additional information as
     the Borrower and/or the Administrative Agent shall specify;

          (iii) the relevant Seller and the Borrower shall have executed and
     delivered to the Administrative Agent a duly executed Receivables Sale
     Agreement which shall include a Schedule A listing the Receivables to be
     sold on such Receivables Sale Date;

          (iv) the relevant Seller shall, to the extent required by Section 5.2,
                                                                    -----------
     have deposited in the Collection Account all collections received after the
     Relevant Cutoff Date with respect to the Receivables to be sold on such
     Receivables Sale Date;

          (v) as of each Receivables Sale Date, (A) the relevant Seller shall
     not be insolvent or become insolvent as a result of the sale of Receivables
     on such Receivables Sale Date, (B) such Seller shall not intend to incur or
     believe that it shall incur debts that would be beyond its ability to pay
     as such debts mature, (C) such sale shall not have been made with actual
     intent to hinder, delay or defraud any Person and (D) the assets of the
     relevant Seller shall not constitute unreasonably small capital to carry
     out its business as conducted;

          (vi) the Termination Date shall not have occurred;

          (vii) after giving effect to the sale of Receivables proposed to be
     made on any Receivables Sale Date, no Receivables Pool Limitations shall
     have been exceeded;

          (viii) each of the representations and warranties made by the relevant
     Seller pursuant to Section 4.1 with respect to each of the Receivables to
                        -----------
     be sold on such Receivables Sale Date shall be true and correct as of such
     Receivables Sale Date, and such Seller shall have performed all obligations
     to be performed by it hereunder on or prior to such Receivables Sale Date;

          (ix) the relevant Seller shall, at its own expense, no later than the
     Business Day following the Receivables Sale Date, indicate in its computer
     files that the Receivables identified in the Receivables Sale Agreement
     have been sold to the Borrower pursuant to this Agreement;

          (x) the relevant Seller shall have taken any action (including, but
     not limited to, the filing of appropriate UCC financing statements)
     required to maintain the ownership interest of the Borrower in the
     Receivables;

          (xi) no selection procedures adverse to the interests of the Borrower
     and/or the Secured Parties shall have been utilized in selecting the
     Receivables to be sold on such Receivables Sale Date;

                                       7
<PAGE>

          (xii) without limiting any of the foregoing, no event shall have
     occurred and remain continuing, nor would result from such sale of
     Receivables, that constitutes a Termination Event or a Potential
     Termination Event;

          (xiii) on each Receivables Sale Date, the Borrower shall have
     transferred to the Administrative Agent for deposit to the Receivables
     Reserve Account, the amount of the Receivables Reserve Shortfall Amount, if
     any, required to be made in connection with such sale (provided that such
                                                            --------
     payment may be made by the Borrower out of the proceeds of the Funding made
     on such date);

          (xiv) the relevant Seller shall have received a cash payment in the
     amount of the entire Receivables Purchase Price of the Receivables sold on
     such Receivables Sale Date, except to the extent that such Seller, at its
     option, elects to make a capital contribution to the Borrower;

          (xv) to the extent that, after giving effect to the sale of
     Receivables made on such date there would be one or more states of the
     United States in which Financed Vehicles securing more than 10% of the
     Receivables Pool Balance were titled and as to which states an Opinion of
     Counsel had not been given on the Effective Date or on a prior Receivables
     Sale Date as to the perfection, priority and enforceability of the
     Administrative Agent's security interest, on behalf of the Secured Parties,
     in the relevant Financed Vehicle, for each such state, the relevant Seller
     shall have caused to be delivered to the Borrower and the Administrative
     Agent such an Opinion of Counsel satisfactory in form and substance to the
     Borrower and the Administrative Agent to be given by in-house counsel to
     the relevant Seller with respect to such jurisdiction;

          (xvi) without limiting the foregoing, the Administrative Agent shall
     have received and found satisfactory in form and substance the Hedge
     Contracts to be effective as of the related Receivables Sale Date and each
     of which shall, among other things, (A) be, along with any other Hedge
     Contracts, in an aggregate notional amount equal to the portion of the
     Aggregate Net Investment relating to Receivables (including any Aggregate
     Net Investment to be made in connection with such sale of Receivables); (B)
     shall have a strike rate based on a floating rate index so as not to create
     an Excess Spread Deficiency and, in the case of any cap, for which the
     entire consideration is payable by the Borrower thereunder on the related
     Receivables Sale Date; (C) have an amortization schedule and margin above
     LIBOR, if any (the resulting periodic scheduled payments thereunder,
     "Scheduled Hedge Payments") in form and substance satisfactory to the
      ------------------------
     Administrative Agent and the Rating Agencies and shall be documented via
     ISDA documentation in form and substance satisfactory to the Administrative
     Agent and the Rating Agencies; and (D) provide for any payments by the
     Hedge Counterparty thereunder to be payable on the last Business Day of
     each calendar month directly into the Collection Account;

          (xvii) the Borrower shall have delivered to the Administrative Agent
     an Officer's Certificate confirming the satisfaction of each condition
     precedent specified in this Section 3.2;
                                 -----------

                                       8
<PAGE>

          (xviii) the Servicer, acting as Custodian pursuant to Section 4.3
                                                                -----------
     hereof or any successor Custodian acting in such capacity pursuant to
     Section 4.3, shall have received the Receivable File for each Receivable
     -----------
     sold on such Receivable Sale Date;

          (xix) the relevant Seller and the Borrower shall have taken all steps
     necessary under all applicable law in order to cause a valid, subsisting
     and enforceable first priority perfected security interest to exist in
     favor of the Borrower in the Financed Vehicle securing each Receivable
     being sold (and the proceeds of such Financed Vehicle) (provided, however,
                                                             --------  -------
     that, prior to (X) the occurrence of a Servicer Termination Event, a
     Potential Servicer Termination Event, a Termination Event or a Potential
     Termination Event and the request by the Administrative Agent or, (Y) at
     any time, the request by the Required APA Banks, for the recordation of the
     Borrower's lien on such Financed Vehicle's certificate of title, no such
     recordation shall be required) and such security interest is and shall be
     prior to all other liens upon and security interests in such Financed
     Vehicle (and the proceeds thereof) that now exist or may hereafter arise or
     be created (except, as to priority, for any tax liens or mechanic's liens
     that may arise after the applicable date of sale of such Receivable
     hereunder); and

          (xx) the relevant Seller and the Borrower shall have taken all steps
     necessary under all applicable law in order to cause to exist in favor of
     the Administrative Agent, on behalf of the Secured Parties, a valid,
     subsisting and enforceable first priority perfected security interest in
     the Borrower's first priority perfected security interest in the Financed
     Vehicle securing each Receivable being sold (and the proceeds of such
     Financed Vehicle) (provided, however, that, prior to (X) the occurrence of
                        --------  -------
     a Servicer Termination Event, a Potential Servicer Termination Event, a
     Termination Event or a Potential Termination Event and the request by the
     Administrative Agent or, (Y) at any time, the request by the Required APA
     Banks, for the recordation of the Borrower's and/or the Administrative
     Agent's lien on such Financed Vehicle's certificate of title, no such
     recordation shall be required), and such security interest is and shall be
     prior to all other liens upon and security interests in such Financed
     Vehicle that now exist or may hereafter arise or be created; and

          (xxi) with respect to the initial sale of Receivables hereunder, the
     Administrative Agent shall have received, and found satisfactory in form, a
     rating letter from Moody's assigning the VFN a rating of at least A2 and a
     rating letter from S&P assigning a rating of at least A.

          Section 3.3 Conditions Precedent to Each Asset Backed Securities Sale.
                      ---------------------------------------------------------

          (a) The initial sale of Asset Backed Securities shall be subject to
     the condition precedent to the delivery by the Borrower of an Opinion of
     Counsel to the Administrative Agent in form and substance satisfactory to
     the Administrative Agent regarding Article 8 matters under the UCC with
     respect to the ABS Account and the Asset Backed Securities.

          (b) The initial sale and each subsequent sale of Asset Backed
     Securities shall be subject to the further conditions precedent that:

                                       9
<PAGE>

               (i) the Primary Seller shall have provided the Borrower and the
Administrative Agent with an ABS Sale Notice not later than one (1) Business Day
prior to such ABS Sale Date and shall have provided any information reasonably
requested by the Borrower and/or the Administrative Agent with respect to the
Asset Backed Securities to be sold to the Borrower on such ABS Sale Date;

               (ii) the Primary Seller shall have caused the Servicer to provide
the Borrower and the Administrative Agent with a Servicer's ABS Sale Date
Certificate and an ABS Schedule of Information in the form of Exhibit G not
later than 12:30 P.M. (New York time) one (1) Business Day prior to the ABS Sale
Date;

               (iii) the Primary Seller and the Borrower shall have executed and
delivered to the Administrative Agent a duly executed ABS Sale Agreement which
shall include a Schedule A listing the Asset Backed Securities to be sold on
such ABS Sale Date;

               (iv) the Termination Date shall not have occurred;

               (v) each of the representations and warranties made by the
Primary Seller pursuant to Section 4A.1 with respect to each of the Asset Backed
                           ------------
Securities to be sold on such ABS Sale Date shall be true and correct as of such
ABS Sale Date, and the Primary Seller shall have performed all of its
obligations to be performed by it hereunder on or prior to such ABS Sale Date;

               (vi) the Primary Seller shall have caused the Asset Backed
Securities to be credited to the ABS Account and, if such Asset Backed
Securities are in physical form indorsed to the Securities Intermediary or
indorsed in blank and delivered to the Securities Intermediary;

               (vii) without limiting any of the foregoing, no event shall have
occurred and remain continuing, nor would result from such sale of such Asset
Backed Securities, that constitutes a Termination Event or a Potential
Termination Event;

               (viii) on each ABS Sale Date, the Borrower shall have transferred
to the Administrative Agent for deposit in the ABS Reserve Account, the amount
of the ABS Reserve Account Shortfall, if any, required to be made in connection
with such sale (provided that such payment may be made by the Borrower out of
                --------
the proceeds of the Funding made on such date);

               (ix) the Primary Seller shall have received a cash payment in the
amount of the entire ABS Purchase Price of the Asset Backed Securities sold on
such ABS Sale Date, except to the extent that the Primary Seller makes a capital
contribution into the Borrower;

               (x) without limiting the foregoing, the Administrative Agent
shall have received and found satisfactory in form and substance the Hedge
Contracts to be effective as of the related ABS Sale Date and each of which
shall be acceptable to the Administrative Agent, each of the Secured Parties and
the Rating Agencies;

                                       10
<PAGE>

               (xi) the Account Control Agreement shall have been executed;

               (xii) with respect to each Asset Backed Security that is a
variable pay term note (a "VPTN") or a variable pay revolving note (a "VPRN"),
                           ----                                        ----
(A) there shall be no more than 10% of the original principal amount of any
other Asset Backed Security purchased hereunder that is also a VPTN within the
same issue and is then outstanding or there shall have been no unreimbursed
amounts outstanding under a VPRN and (B) the Servicer shall have paid in full
any outstanding amounts due under any such VPTN or VPRN;

               (xiii) with respect to the initial sale of Asset Backed
Securities hereunder, the Administrative Agent shall have received (if not
already provided pursuant to Section 3.2(xxii) hereunder), and found
satisfactory in form, a rating letter from Moody's assigning the VFN a rating of
at least A2 and a rating letter from S&P assigning a rating of at least A;

               (xiv) the Administrative Agent shall have received, and found
satisfactory in form and substance, any rating letter issued with respect to
such Asset Backed Security; and

               (xv) the Borrower shall have delivered to the Administrative
Agent an Officer's Certificate confirming the satisfaction of each condition
precedent specified in this Section 3.3.
                            ------------

                                   ARTICLE IV

                                The Receivables
                                ---------------

     Section 4.1 Representations and Warranties of Sellers. Each of the Sellers
                 -----------------------------------------
makes the representations and warranties, set forth on the Schedule of
Representations attached hereto as Schedule B, as to the Receivables on which
the Borrower is relying in acquiring the Receivables and upon which the Secured
Parties are relying in making any Advance pursuant to the Security and Funding
Agreement. Such representations and warranties speak as of the execution and
delivery of this Agreement and as of each Receivables Sale Date with respect to
the Receivables sold on such date, but shall survive the sale, transfer and
assignment of the Receivables to the Borrower and the pledge thereof to the
Administrative Agent pursuant to the Security and Funding Agreement.

     Section 4.2 Repurchase Upon Breach. Each Seller, the Servicer or the
                 ----------------------
Borrower, as the case may be, shall inform the other parties to this Agreement
promptly, in writing, (i) upon the discovery of any breach of any Seller's
representations and warranties made pursuant to Section 4.1, and (ii) of any
                                                -----------
Receivable for which the related Lien Certificate has not been received within
150 days following the Receivables Sale Date with respect thereto (for purposes
of this Section 4.2, each of the foregoing referred to as a "breach"). As of the
        -----------
last day of the month in which either Seller, the Servicer or the Borrower, as
the case may be, discovers the breach, or in which the relevant Seller receives
notice of such breach, unless such breach is cured

                                       11
<PAGE>

by such date, the Seller which sold such asset to the Borrower shall repurchase
any Receivable sold by it that is adversely affected and/or in which the
interests of the Borrower or the Secured Parties are adversely affected by any
such breach. In consideration of and simultaneously with the repurchase of the
Receivable, the relevant Seller shall remit, or cause the Servicer to remit, to
the Collection Account the Repurchase Obligation Amount in the manner specified
in Section 6.7 and the Borrower shall execute such assignments and other
   -----------
documents reasonably requested by such Person in order to effect such
repurchase. The sole remedy of the Borrower, the Administrative Agent, or the
Secured Parties with respect to a breach of representations and warranties
pursuant to Section 4.1 and the agreement contained in this Section shall be the
            -----------
repurchase of Receivables and the applicable Seller indemnity pursuant to this
Section, subject to the conditions contained herein. Neither the Administrative
Agent nor the Borrower nor any Secured Party shall have a duty to conduct any
affirmative investigation as to the occurrence of any conditions requiring the
repurchase of any Receivable pursuant to this Section.

     In addition to the foregoing and notwithstanding whether the related
Receivable shall have been purchased by the relevant Seller, the Sellers jointly
and severally shall indemnify the Borrower, the Backup Servicer, the
Administrative Agent and the Secured Parties against all costs, expenses,
losses, damages, claims and liabilities, including reasonable fees and expenses
of counsel, which may be asserted against or incurred by any of them as a result
of third party claims arising out of the events or facts giving rise to such
breach.

     Section 4.3 Custody of Receivable Files. (a) Subject to the terms and
                 ---------------------------
conditions hereof, in connection with the sale, transfer and assignment of the
Receivables and the Other Conveyed Property to the Borrower pursuant to this
Agreement, the Administrative Agent (acting at the direction of the Required APA
Banks) hereby revocably appoints AFS, and AFS hereby accepts such appointment,
as custodian and bailee on behalf of the Administrative Agent (for the benefit
of the Secured Parties) (in such capacity, the "Custodian") to maintain
                                                ---------
exclusive custody of the Receivable Files relating to the Receivables from time
to time pledged to the Administrative Agent (for the benefit of the Secured
Parties); provided, however, that none of the Administrative Agent or any other
          --------  -------
Secured Party shall be responsible for the acts or omissions of AFS in such
capacity. In performing its duties hereunder, the Custodian agrees to act with
that degree of care, skill and attention that a commercial bank acting in the
capacity of a custodian would exercise with respect to files relating to
comparable automotive or other receivables that it services or holds for itself
or others, and, in any event, to exercise at least that degree of care, skill
and attention that it exercises with respect to its own assets. The Custodian
hereby and as of each Receivables Sale Date with respect to the Receivables sold
on such date, acknowledges receipt of the Receivable File for each Receivable
listed in the Schedule of Receivables, subject to any exceptions noted on the
Servicer's Acknowledgment. As evidence of its acknowledgment of such receipt of
such Receivables, the Custodian shall execute and deliver on each Receivables
Sale Date with respect to the Receivables sold on such date, the Servicer's
Acknowledgment in the form attached hereto as Exhibit E.

     The Custodian shall act as the agent of the Administrative Agent as
custodian of the following documents or instruments in its possession which
shall be delivered to the Custodian as agent of the Administrative Agent on or
before each Receivables Sale Date (with respect to each Receivable):

                                       12
<PAGE>

          (i) the fully executed original of the Receivable (together with any
agreements modifying the Receivable, including without limitation any extension
agreements);

          (ii) the original credit application (or, if no such credit
application has been completed, other evidence of application being made or
credit evaluation being conducted), or a copy thereof, of each Obligor, fully
executed by each such Obligor on the Custodian's customary form, or on a form
approved by the Custodian, for such application;

          (iii) (1) for any Contract secured by a Financed Vehicle registered in
any state with the prior consent of the Administrative Agent (acting in its
reasonable discretion) for which the Paperless Title System is used to evidence
title to and any lien in such Financed Vehicle, a computer printout or similar
documentary evidence that there is an electronic record in the Paperless Title
System indicating that such Financed Vehicle is owned by the Obligor and subject
to the interest of the relevant Seller as first lienholder or secured party
(when such electronic record becomes available through the Paperless Title
System), provided that a computer printout sheet listing multiple Financed
         --------
Vehicles registered through the Paperless Title System shall be deemed included
in a Receivable File for a Contract if such printout has been made available to
the Administrative Agent, or (2) for any Contract secured by a Financed Vehicle
registered in a state for which the Paperless Title System is not available to
evidence title to and any lien in the Financed Vehicle, or for any Contract
secured by a Financed Vehicle registered in any state where the Paperless Title
System was not used, the original certificate of title (when received) and
otherwise such documents, if any, that the Custodian keeps on file in accordance
with its customary procedures indicating that the Financed Vehicle is owned by
the Obligor and subject to the interest of the relevant Seller as first
lienholder or secured party, or, if such original certificate of title has not
yet been received, a copy of the application therefor, showing the relevant
Seller as secured party;

          (iv) a true and complete copy of the duly executed Dealer Assignment
or Third-Party Lender Assignment; and

          (v) a true and complete copy of the duly executed Insurance Policy.

     (b) The Administrative Agent may act as the Custodian, in which case the
Administrative Agent shall be deemed to have assumed the obligations of AFS in
such capacity as Custodian specified herein.

         So long as AFS is acting as Custodian hereunder, AFS shall not resign
from such obligations and duties as Custodian imposed on it by this Agreement,
except upon a determination that by reason of a change in legal requirements,
the performance of such duties and obligations under this Agreement would cause
it to be in violation of such legal requirements in a manner which would have a
material adverse effect on it and the Administrative Agent does not elect to
waive the obligations of AFS with respect to the performance of the duties which
render it legally unable to act or to delegate those duties to another Person.
Any such determination permitting the resignation of AFS in such capacity shall
be evidenced by an Opinion of Counsel to such effect delivered and acceptable to
the Administrative Agent.

                                       13
<PAGE>

Immediately after receipt of notice of termination of AFS as Custodian
hereunder, AFS shall deliver the Receivable Files to the Administrative Agent on
behalf of the Secured Parties, at such place or places as the Administrative
Agent may designate, and the Administrative Agent, or its agent, as the case may
be, shall act as Custodian for such Receivable Files on behalf of the Secured
Parties until such time as a successor Custodian has been appointed by the
Administrative Agent. (For the avoidance of doubt, during any such period, the
Administrative Agent shall be acting in its capacity as Administrative Agent,
including the standard of care and liability in such capacity, and not as a
successor "Custodian" hereunder.) If, within seventy-two (72) hours after the
termination of AFS as Custodian hereunder, AFS has not delivered the Receivable
Files in accordance with the preceding sentence, the Administrative Agent may
enter the premises of AFS and remove the Receivable Files from such premises.

     (c) In the event that AFS no longer serves as Custodian with respect to the
Receivable Files, upon payment in full of any Receivable, the Servicer will
notify such other party acting as Custodian pursuant to a certificate of an
officer of the Servicer (which certificate shall include a statement to the
effect that all amounts received in connection with such payments which are
required to be deposited in the Collection Account pursuant to Section 5.1 have
                                                               -----------
been so deposited) and shall request delivery of the Receivable and Receivable
File to the Servicer; provided, however, that so long as AFS acts in the
                      --------  -------
capacities of Servicer and of Custodian, such notice by the Servicer may be made
in such other form and manner as are consistent with the Servicer's customary
operating procedures. From time to time as appropriate for servicing and
enforcing any Receivable, the party acting as Custodian shall, upon written
request of an officer of the Servicer and delivery to such party of a receipt
signed by such officer, cause the original Receivable and the related Receivable
File to be released to the Servicer. The Servicer's receipt of a Receivable
and/or Receivable File shall obligate the Servicer to return the original
Receivable and the related Receivable File to the Custodian when its need by the
Servicer has ceased unless the Receivable is repurchased as described in Section
                                                                         -------
4.2 or 5.7. The Servicer, while in possession of the Receivable Files, shall
---    ---
hold such Receivable Files as custodian and bailee for the Administrative Agent
for the benefit of the Secured Parties.

     (d) The Custodian agrees to maintain the Receivable Files at its principal
office or at such other office as shall from time to time be identified to the
Administrative Agent, and the Custodian will hold the Receivable Files in such
office on behalf of the Administrative Agent, clearly identified on its records
as being separate from any other instruments and files, including other
instruments and files held by the Custodian, and in compliance with Section
                                                                    -------
4.4(b) hereof.
------
     Section 4.4 Duties of Custodian With Respect to Receivable Files.
                 ----------------------------------------------------

     (a) Safekeeping. The Custodian shall hold the Receivable Files on behalf of
         -----------
the Administrative Agent, for the benefit of the Secured Parties, clearly
identified as being separate from all other files or records maintained by the
Custodian, whether at the same or any other location, and shall maintain such
accurate and complete accounts, records and computer systems pertaining to each
Receivable File as are required to comply with the terms and conditions of this
Agreement. Each Receivable shall be stamped on both of the first page and the
signature page (if different) as is deemed necessary or desirable by the Secured
Parties. Each

                                       14
<PAGE>

Receivable shall be identified on the books and records of the Custodian in a
manner that (i) is consistent with the practices of a commercial bank acting in
the capacity of custodian with respect to similar receivables, (ii) indicates
that the Receivables are held by the Custodian on behalf of the Administrative
Agent and (iii) is otherwise necessary, as reasonably determined by the
Custodian, to comply with the terms of this Agreement. The Custodian shall
conduct, or cause to be conducted, periodic physical inspections 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
Administrative Agent and the Custodian to verify the accuracy of the Custodian's
inventory and record keeping. Such inspections shall be conducted at such times,
in such manner and by such persons including, without limitation, independent
accountants, as the Administrative Agent may request and the cost of such
inspections shall be borne by the Custodian. The Custodian shall promptly report
to the Administrative Agent any failure on the Custodian's part to hold the
Receivable Files and maintain its accounts, records and computer systems as
herein provided and the Custodian shall promptly take appropriate action to
remedy any such failure. Notwithstanding the above, if reasonably requested by
the Administrative Agent, the Custodian shall promptly make copies or other
electronic file records (e.g. diskettes, CD's, etc.) (the "Copies") of the
                                                           ------
Receivable Files related to any or all of the Receivables and shall deliver such
Copies to the Administrative Agent, and the Administrative Agent shall hold such
Copies on behalf of the Secured Parties. Subject to Section 4.4(b) hereof, the
                                                    --------------
Custodian shall at all times maintain the original of the fully executed
original retail installment sales contract or installment loan contract and of
the Lien Certificate or application therefore, if no such Lien Certificate has
yet been issued, relating to each Receivable in a fire proof vault.

     (b) Access to Records. The Custodian shall, subject only to the Custodian's
         -----------------
security requirements applicable to its own employees having access to similar
records held by the Custodian, which requirements shall be consistent with the
practices of a commercial bank acting in the capacity of custodian with respect
to similar files or records, and at such times as may be reasonably imposed by
the Custodian, permit only the Secured Parties and the Administrative Agent or
their duly authorized representatives, attorneys or auditors to inspect the
Receivable Files and the related accounts, records, and computer systems
maintained by the Custodian pursuant hereto at such times as the Secured Parties
or the Administrative Agent may reasonably request.

     (c) Release of Documents. In the event that AFS no longer serves as
         --------------------
Custodian with respect to the Receivable Files, such party shall release any
Receivable in the Receivable Files to the Custodian either upon (1) payment in
full of any Receivable or (2) as required from time to time as appropriate for
servicing and enforcing any Receivable, subject to satisfaction of the
conditions set forth in Section 4.3(b) of this Agreement.
                        --------------

     (d) Administration; Reports. The Custodian shall, in general, attend to all
         -----------------------
ministerial matters in connection with maintaining custody of the Receivable
Files on behalf of the Administrative Agent. In addition, the Custodian
generally shall assist the Administrative Agent in the preparation of any
routine reports to Secured Parties or to regulatory bodies, to the extent
necessitated by the Custodian's custody of the Receivable Files.

                                       15
<PAGE>

     (e) Review of Lien Certificates. On or before each Determination Date, the
         ---------------------------
Custodian shall deliver to the Administrative Agent a listing of each Receivable
with respect to which a Lien Certificate, showing AFS as secured party, was not
included in the related Receivable File as of the sixtieth (60th) day following
the date of origination of such Receivable.

     Section 4.5 Instructions; Authority to Act. The Custodian shall be deemed
                 ------------------------------
to have received proper instructions with respect to the Receivable Files upon
its receipt of written instructions signed by a Responsible Officer of the
Administrative Agent. Such instructions may be general or specific in terms.

                                  ARTICLE IV-A

                           The Asset Backed Securities
                           ---------------------------

     Section 4A.1 Representations and Warranties of the Primary Seller. The
                  ----------------------------------------------------
Primary Seller makes the representations and warranties, set forth on the
Schedule of Representations attached hereto as Schedule C, as to the Asset
Backed Securities on which the Borrower is relying in acquiring the Asset Backed
Securities and upon which the Secured Parties are relying in making any Advance
pursuant to the Security and Funding Agreement. Such representations and
warranties speak as of the execution and delivery of this Agreement and as of
each ABS Sale Date with respect to the Asset Backed Securities sold on such
date, but shall survive the sale, transfer and assignment of the Asset Backed
Securities to the Borrower and the pledge thereof to the Administrative Agent
pursuant to the Security and Funding Agreement.

     Section 4A.2 Repurchase Upon Breach or Downgrade. The Primary Seller, the
                  -----------------------------------
Servicer or the Borrower, as the case may be, shall inform the other parties to
this Agreement promptly, in writing, upon (a) the discovery of any breach of the
Primary Seller's representations and warranties made pursuant to Section 4A.1
                                                                 ------------
(for purposes of this Section 4A.2, the foregoing is referred to as a "breach")
                      ------------
and (b) the withdrawal, suspension or downgrade of the rating of any Asset
Backed Security pledged to the Secured Parties pursuant to the Security and
Funding Agreement. No later than (x) in the case of any such breach, the second
Business Day after which the Primary Seller, the Servicer or the Borrower, as
the case may be, discovers the breach, or in which the Primary Seller receives
notice of such breach, unless such breach is cured by such date, or (y) in the
case of any such withdrawal, suspension or downgrade, the fifth Business Day
after such withdrawal, suspension or downgrade, the Primary Seller shall
repurchase any Asset Backed Security sold by it that is (1) adversely affected
and/or in which the interests of the Borrower or the Secured Parties are
adversely affected by any such breach or (2) the subject of such withdrawal,
suspension or downgrade, as the case may be. In consideration of and
simultaneously with the repurchase of the Asset Backed Securities, the Primary
Seller shall remit, or cause the Servicer to remit, to the Collection Account
the ABS Repurchase Obligation Amount in the manner specified in Section 6.7 and
                                                                -----------
the Borrower shall execute such assignments and other documents reasonably
requested by such Person in order to effect such repurchase. The sole remedy of
the Borrower, the Administrative Agent, or the Secured Parties with respect to a
breach of representations and warranties pursuant to Section 4A.1 and the
                                                     ------------
agreement contained in this Section or the withdrawal, suspension or downgrade
of the rating of any Asset

                                       16
<PAGE>

Backed Security pledged to the Secured Parties shall be the repurchase of
relevant Asset Backed Securities and the Primary Sellers' indemnity pursuant to
this Section, subject to the conditions contained herein. Neither the
Administrative Agent nor the Borrower shall have a duty to conduct any
affirmative investigation as to the occurrence of any conditions requiring the
repurchase of any Asset Backed Security pursuant to this Section.

     In addition to the foregoing and notwithstanding whether the related Asset
Backed Security shall have been purchased by the Primary Seller, the Primary
Seller shall indemnify the Borrower, the Backup Servicer, the Administrative
Agent and the Secured Parties against all costs, expenses, losses, damages,
claims and liabilities, including reasonable fees and expenses of counsel, which
may be asserted against or incurred by any of them as a result of third party
claims arising out of the events or facts giving rise to such breach or such
withdrawal, suspension or downgrade.

                                    ARTICLE V

                  Administration and Servicing of Receivables
                  -------------------------------------------

       Section 5.1 Appointment; Standard of Care; Duties of the Servicer.
                   -----------------------------------------------------

     (a) The Servicer is hereby authorized to act as agent for the Borrower and
in such capacity shall manage, service, administer and make collections on the
Receivables and perform the other actions required by the Servicer under this
Agreement. So long as AFS is the Servicer, the Servicer agrees that its
servicing of the Receivables shall be carried out in accordance with the Credit
and Servicing Procedures and, with respect to any matters not expressly covered
by such Credit and Servicing Procedures or, in the event the Servicer is not
AFS, in accordance with customary and usual procedures of institutions that are
primarily engaged in the business of servicing motor vehicle retail installment
sales contracts or installment loan contracts; provided that in any event the
                                               --------
Servicer shall exercise at least the degree of skill and attention that the
Servicer exercises from time to time with respect to all comparable motor
vehicle receivables that it services for itself or others (the foregoing
standard of care being referred to as the "Servicing Standard").
                                           ------------------

     (b) The Servicer's duties shall include, without limitation: collection and
posting of all payments; responding to inquiries of Obligors on the Receivables;
investigating delinquencies; sending payment coupons to Obligors; reporting any
required tax information to Obligors; monitoring the Collateral; complying with
the terms of the Lockbox Agreement; accounting for collections and furnishing
monthly statements to the Borrower and the Administrative Agent with respect to
collections and distributions, as well as the Servicer statements required in
connection with each sale of Receivables; monitoring the status of Insurance
Policies with respect to the Financed Vehicles and performing the other duties
specified herein. The Servicer shall also administer and enforce all rights and
responsibilities of the holder of the Receivables provided for in the Dealer
Agreements (and shall maintain possession of the Dealer Agreements, to the
extent it is necessary to do so), the Dealer Assignments and the Insurance
Policies, to the extent that such Dealer Agreements, Dealer

                                       17
<PAGE>

Assignments and Insurance Policies relate to the Receivables, the Financed
Vehicles or the Obligors. To the extent consistent with the standards, policies
and procedures otherwise required hereby, the Servicer shall follow its
customary standards, policies, and procedures and shall have full power and
authority, acting alone, to do any and all things in connection with such
managing, servicing, administration and collection that it may deem necessary or
desirable. Without limiting the generality of the foregoing, the Servicer is
hereby authorized and empowered by the Borrower to execute and deliver, on
behalf of the Borrower, any and all instruments of satisfaction or cancellation,
or of partial or full release or discharge, and all other comparable
instruments, with respect to the Receivables and with respect to the Financed
Vehicles; provided, however, that notwithstanding the foregoing, the Servicer
          --------  -------
shall not, except pursuant to an order from a court of competent jurisdiction,
release an Obligor from payment of any unpaid amount under any Receivable or
waive the right to collect the unpaid balance of any Receivable from the
Obligor. The Servicer is hereby authorized to commence, in its own name or in
the name of the Borrower, a legal proceeding to enforce a Receivable pursuant to
Section 5.3 or to commence or participate in any other legal proceeding
-----------
(including, without limitation, a bankruptcy proceeding) relating to or
involving a Receivable, an Obligor or a Financed Vehicle. If the Servicer
commences or participates in such a legal proceeding in its own name, the
Borrower shall thereupon be deemed to have automatically assigned such
Receivable to the Servicer solely for purposes of commencing or participating in
any such proceeding as a party or claimant, and the Servicer is authorized and
empowered by the Borrower to execute and deliver in the Servicer's name any
notices, demands, claims, complaints, responses, affidavits or other documents
or instruments in connection with any such proceeding. The Administrative Agent
shall furnish the Servicer with any powers of attorney and other documents which
the Servicer may reasonably request and which the Servicer deems necessary or
appropriate and take any other steps which the Servicer may deem necessary or
appropriate to enable the Servicer to carry out its servicing and administrative
duties under this Agreement.

     (c) The provisions of this subsection (c) are applicable only so long as
AFS is the Servicer. On each Determination Date, together with the Servicer's
Determination Date Certificate to be delivered on such date, which Servicer's
Determination Date Certificate shall include a statement that no modification
has been made to the Credit and Servicing Procedures that could be reasonably
expected to have a material adverse effect on the Borrower and/or the Secured
Parties, the Servicer shall deliver to the Administrative Agent a description of
any modification made to the Credit and Servicing Procedures since the last
Determination Date. The Servicer further agrees that it shall not make any
changes to the Credit and Servicing Procedures that could reasonably be expected
to have a material adverse effect on the Borrower and/or the Secured Parties
unless it has given the Administrative Agent (for transmittal to the APA Banks
and the Rating Agencies) at least 20 days' prior written notice of such proposed
modification and the Required APA Banks have not objected in writing prior to
the expiration of such 20 day period.

     Section 5.2 Collection of Receivable Payments; Modifications of
                 ---------------------------------------------------
Receivables; Lockbox Agreements.
-------------------------------

     (a) Consistent with the Servicing Standard, the Servicer shall make
reasonable efforts to collect all payments called for under the terms and
provisions of the Receivables as and

                                       18
<PAGE>

when the same shall become due, and shall follow such collection procedures as
it follows with respect to all comparable automobile receivables that it
services for itself or others and otherwise act with respect to the Receivables,
the Dealer Agreements, the Dealer Assignments, the Third-Party Loan Purchase
Agreements, the Third-Party Lender Assignments, the Insurance Policies and the
Other Conveyed Property in such manner as will, in the reasonable judgment of
the Servicer, maximize the amount to be received by the Borrower with respect
thereto. The Servicer is authorized in its discretion to waive any prepayment
charge, late payment charge or any other similar fees that may be collected in
the ordinary course of servicing any Receivable.

     (b) The Servicer may at any time agree to a modification or amendment of a
Receivable in order to (i) change the Obligor's regular due date to a date
within the Collection Period in which such due date occurs or (ii) reamortize
the Scheduled Payments on the Receivable following a partial prepayment of
principal.

     (c) The Servicer may grant payment extensions on, or other modifications or
amendments to, a Receivable (in addition to those modifications permitted by
Section 5.2(b)) in accordance with the Credit and Servicing Procedures and the
---------------
Servicing Standard if the Servicer believes in good faith that such extension,
modification or amendment is necessary to avoid a default on such Receivable,
will maximize the amount to be received by the Borrower with respect to such
Receivable, and is otherwise in the best interests of the Borrower; provided,
                                                                    --------
however, that:
-------

          (i) The aggregate period of all extensions on a Receivable shall not
     exceed six months;

          (ii) In no event may a Receivable be extended such that the final
     payment scheduled to be made thereunder would be more than 78 months beyond
     the date of origination; and

          (iii) the Servicer shall not amend or modify a Receivable (except as
     provided in Section 5.2(b) and this Section 5.2(c)) without the consent of
                 --------------          ---------------
     the Administrative Agent (acting at the direction of the Required APA
     Banks).

     (d) The Servicer shall use its best efforts to notify or direct Obligors to
make all payments on the Receivables, whether by check or by direct debit of the
Obligor's bank account, to be made directly to the Lockbox Bank. The Servicer
shall use its best efforts to notify or direct any Lockbox Bank to deposit all
payments on the Receivables in the Lockbox Account no later than the Business
Day after receipt, and to cause all amounts credited to the Lockbox Account on
account of such payments to be transferred to the Collection Account no later
than the second Business Day after receipt of such payments. The Lockbox Account
shall be a demand deposit account held by the Lockbox Bank, or at the request of
the Administrative Agent, acting at the direction of the Required APA Banks, an
Eligible Deposit Account.

     On the first day on which a payment coupon is delivered to an Obligor
following the Relevant Cutoff Date, but not to exceed thirty-one (31) days
following such Relevant Cutoff Date, the Servicer shall have notified each
Obligor that makes its payments on the Receivables

                                       19
<PAGE>

by check to make such payments thereafter directly to the Lockbox Bank (except
in the case of Obligors that have already been making such payments to the
Lockbox Bank), and shall have provided each such Obligor with remittance
invoices in order to enable such Obligors to make such payments directly to the
Lockbox Bank for deposit into the Lockbox Account, and the Servicer will
continue, not less often than every three months, to so notify those Obligors
who have failed to make payments to the Lockbox Bank. If and to the extent
requested by the Administrative Agent, acting at the direction of the Required
APA Banks, the Servicer shall request each Obligor that makes payment on the
Receivables by direct debit of such Obligor's bank account, to execute a new
authorization for automatic payment which in the judgment of the Administrative
Agent, acting at the direction of the Required APA Banks, is sufficient to
authorize direct debit by the Lockbox Bank on behalf of the Borrower. If at any
time, the Lockbox Bank is unable to directly debit an Obligor's bank account
that makes payment on the Receivables by direct debit and if such inability is
not cured within 15 days or cannot be cured by execution by the Obligor of a new
authorization for automatic payment, the Servicer shall notify such Obligor that
it cannot make payment by direct debit and must thereafter make payment by
check.

     Notwithstanding any Lockbox Agreement, or any of the provisions of this
Agreement relating to the Lockbox Agreement, the Servicer shall remain obligated
and liable to the Borrower, the Administrative Agent and Secured Parties for
servicing and administering the Receivables and the other Conveyed Property in
accordance with the provisions of this Agreement without diminution of such
obligation or liability by virtue thereof, provided, however, that the foregoing
                                           --------  -------
shall not apply to any Backup Servicer for so long as a Lockbox Bank is
performing its obligations pursuant to the terms of a Lockbox Agreement.

     In the event of a termination of the Servicer, the successor Servicer shall
assume all of the rights and obligations of the outgoing Servicer under the
Lockbox Agreement subject to the terms hereof. In such event, the successor
Servicer shall be deemed to have assumed all of the outgoing Servicer's interest
therein and to have replaced the outgoing Servicer as a party to each such
Lockbox Agreement to the same extent as if such Lockbox Agreement had been
assigned to the successor Servicer, except that the outgoing Servicer shall not
thereby be relieved of any liability or obligations on the part of the outgoing
Servicer to the Lockbox Bank under such Lockbox Agreement. The outgoing Servicer
shall, upon request of the Administrative Agent (acting at the direction of the
Required APA Banks), but at the expense of the outgoing Servicer, deliver to the
successor Servicer all documents and records relating to each such Lockbox
Agreement and an accounting of amounts collected and held by the Lockbox Bank
and otherwise use its best efforts to effect the orderly and efficient transfer
of any Lockbox Agreement to the successor Servicer. In the event that the
Administrative Agent elects to change the identity of the Lockbox Bank, the
outgoing Servicer, at its expense, shall cause the Lockbox Bank to deliver, at
the direction of the Administrative Agent to the Administrative Agent or a
successor Lockbox Bank, all documents and records relating to the Receivables
and all amounts held (or thereafter received) by the Lockbox Bank (together with
an accounting of such amounts) and shall otherwise use its best efforts to
effect the orderly and efficient transfer of the lockbox arrangements and the
Servicer shall notify the Obligors to make payments to the Lockbox established
by the successor.

                                       20
<PAGE>

     (e) The Servicer shall remit all payments by or on behalf of the Obligors
received directly by the Servicer (including any such payments forwarded to the
Servicer for special handling pursuant to the Lockbox Agreement) into the
Collection Account as soon as practicable, but in no event later than the
Business Day after receipt thereof (and in the case of a check, one Business Day
after such check has cleared, but in no event later than the third Business Day
after receipt thereof).

     Section 5.3 Realization Upon Receivables.
                 ----------------------------

     (a) Consistent with the Servicing Standard, the Servicer shall use its best
efforts to repossess (or otherwise comparably convert the ownership of) and
liquidate any Financed Vehicle securing a Receivable with respect to which the
Servicer has determined that payments thereunder are not likely to be resumed,
as soon as is practicable after default on such Receivable but in no event later
than the date on which all or any portion of a Scheduled Payment has become 91
days delinquent; provided, however, that the Servicer may elect not to repossess
                 --------  -------
a Financed Vehicle within such time period if in its good faith judgment it
determines that the proceeds ultimately recoverable with respect to such
Receivable would be increased by forbearance. The Servicer is authorized to
follow such customary practices and procedures as it shall deem necessary or
advisable, consistent with the Servicing Standard, which practices and
procedures may include reasonable efforts to realize upon any recourse to
Dealers, the sale of the related Financed Vehicle at public or private sale, the
submission of claims under an Insurance Policy and other actions by the Servicer
in order to realize upon such a Receivable. The foregoing is 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 any repair or
towards the repossession of such Financed Vehicle unless it shall determine in
its discretion that such repair and/or repossession shall increase the proceeds
of liquidation of the related Receivable by an amount greater than the amount of
such expenses. All amounts received upon liquidation of a Financed Vehicle shall
be remitted directly by the Servicer to the Collection Account as soon as
practicable, but in no event later than the Business Day after receipt thereof.
The Servicer shall be entitled to recover all reasonable expenses incurred by it
in the course of repossessing and liquidating a Financed Vehicle into cash
proceeds (including, without limitation, any personal property taxes assessed on
such Financed Vehicles). Such expenses, at the option of the Servicer: (i) shall
be reimbursable as Servicer Advances on the Distribution Date next following the
liquidation of the Financed Vehicle (or, if consistent with the Servicing
Standard the Servicer shall have made a determination that the Financed Vehicle
cannot be repossessed and/or liquidated, on the Distribution Date next following
the delivery to the Borrower and the Administrative Agent of an Officer's
Certificate of the Servicer to such effect); or (ii) shall be retained by the
Servicer as deductions from the cash proceeds of such Financed Vehicle, any
deficiency obtained from the Obligor or any amounts received from the related
Dealer, which proceeds and other such cash receipts shall not be required to be
deposited as required by Section 5.2(e) and the foregoing provisions of this
                         --------------
Section 5.3(a) to the extent of such Servicer disbursements. Notwithstanding
--------------
anything to the contrary in the foregoing, the Servicer shall not pay any such
reimbursable expense with respect to a Financed Vehicle to the extent that it
does not reasonably expect, after reasonable inquiry, to be reimbursed for such
expenses from the collections on the Receivable relating to such Financed
Vehicle.

                                       21
<PAGE>

     (b) If the Servicer elects to commence a legal proceeding to enforce a
Dealer Agreement or Dealer Assignment, the act of commencement shall be deemed
to be an automatic assignment from the Borrower to the Servicer of the rights
under such Dealer Agreement and Dealer Assignment for purposes of collection
only. If, however, in any enforcement suit or legal proceeding it is held that
the Servicer may not enforce a Dealer Agreement or Dealer Assignment on the
grounds that it is not a real party in interest or a Person entitled to enforce
the Dealer Agreement or Dealer Assignment, the Administrative Agent, at the
Borrower's expense, or the relevant Seller, at the Borrower's expense, shall
take such steps as the Servicer deems necessary to enforce the Dealer Agreement
or Dealer Assignment, including bringing suit in its name or the name of the
relevant Seller or of the Borrower and/or the Administrative Agent for the
benefit of the Secured Parties. All amounts recovered shall be remitted directly
by the Servicer as provided in Section 5.2(e).
                               --------------

     Section 5.4 Insurance.
                 ---------

     (a) The Servicer shall require, in accordance with the Servicing Standard,
that each Financed Vehicle be insured by the related Obligor under the Insurance
Policies referred to in Paragraph "n" of the Schedule of Representations and
Warranties and shall monitor the status of such physical loss and damage
insurance coverage thereafter, in accordance with the Servicing Standard. Each
Receivable requires the Obligor to maintain such physical loss and damage
insurance, naming the relevant Seller and its successors and assigns as
additional insureds, and permits the holder of such Receivable to obtain
physical loss and damage insurance at the expense of the Obligor if the Obligor
fails to maintain such insurance. If the Servicer shall determine that an
Obligor has failed to obtain or maintain a physical loss and damage Insurance
Policy covering the related Financed Vehicle which satisfies the conditions set
forth in such Paragraph "n" (including, without limitation, during the
repossession of such Financed Vehicle), the Servicer, to the extent required by
its Servicing Standard, shall enforce the rights of the holder of the Receivable
under the Receivable to require the Obligor to obtain such physical loss and
damage insurance. At its sole option, the Servicer may maintain a vendor's
single interest or other collateral protection insurance policy with respect to
all Financed Vehicles ("Collateral Insurance") which policy shall by its terms
                        --------------------
insure against physical loss and damage in the event any Obligor fails to
maintain physical loss and damage insurance with respect to the related Financed
Vehicle. Any such policy of Collateral Insurance shall be indorsed with clauses
providing for loss payable to the Borrower. Costs incurred by the Servicer in
maintaining such Collateral Insurance shall be paid by the Borrower.

     (b) The Servicer may sue to enforce or collect upon the Insurance Policies,
in its own name, if possible, or as agent of the Borrower and/or the Secured
Parties. If the Servicer elects to commence a legal proceeding to enforce an
Insurance Policy, the act of commencement shall be deemed to be an automatic
assignment of the rights of the Borrower under such Insurance Policy to the
Servicer for purposes of collection only. If, however, in any enforcement suit
or legal proceeding it is held that the Servicer may not enforce an Insurance
Policy on the grounds that it is not a real party in interest or a holder
entitled to enforce the Insurance Policy, the Borrower and/or the Administrative
Agent, at the Borrower's expense, or the relevant Seller, at the Borrower's
expense, shall take such steps as the Servicer deems necessary to enforce such

                                       22
<PAGE>

Insurance Policy, including bringing suit in its name or the name of the
Borrower and/or the Administrative Agent for the benefit of the Secured Parties.

     Section 5.5 Maintenance of Security Interests in Financed Vehicles.
                 ------------------------------------------------------

     (a) Consistent with the Servicing Standard, the Servicer shall take such
steps on behalf of the Borrower as are necessary to maintain perfection of the
security interest created by each Receivable in the related Financed Vehicle,
including but not limited to obtaining the execution by the Obligors and the
recording, registering, filing, re-recording, re-filing, and reregistering of
all security agreements, financing statements and continuation statements as are
necessary to maintain the security interest granted by the Obligors under the
respective Receivables. The Administrative Agent hereby authorizes the Servicer,
and the Servicer agrees, to take any and all steps necessary to re-perfect such
security interest on behalf of the Borrower as necessary because of the
relocation of a Financed Vehicle or for any other reason.

     (b) The Servicer shall take all steps necessary under all applicable law in
order to cause a valid, subsisting and enforceable first priority perfected
security interest to exist at all times in favor of the Borrower in the Financed
Vehicle securing each Receivable (and the proceeds of such Financed Vehicle)
(provided, however, that, prior to (X) the occurrence of a Servicer Termination
 --------  -------
Event, a Potential Servicer Termination Event, a Termination Event or a
Potential Termination Event and the request by the Administrative Agent or, (Y)
at any time, the request by the Required APA Banks, for the recordation of the
Borrower's lien on such Financed Vehicle's certificate of title, no such
recordation shall be required) and to cause such security interest to be prior
to all other liens upon and security interests in such Financed Vehicle (and the
proceeds thereof) that now exist or may hereafter arise or be created (except,
as to priority, for any tax liens or mechanic's liens that may arise after the
applicable date of sale of such Receivable hereunder);

     (c) The Servicer and the Borrower shall take all steps necessary under all
applicable law in order to cause to exist at all times in favor of the
Administrative Agent, on behalf of the Secured Parties, a valid, subsisting and
enforceable first priority perfected security interest in the Borrower's first
priority perfected security interest in the Financed Vehicle securing each
Receivable being sold (and the proceeds of such Financed Vehicle) (provided,
                                                                   --------
however, that, prior to (X) the occurrence of a Servicer Termination Event, a
-------
Potential Servicer Termination Event, a Termination Event or a Potential
Termination Event and the request by the Administrative Agent or, (Y) at any
time, the request by the Required APA Banks, for the recordation of the
Borrower's and/or the Administrative Agent's lien on such Financed Vehicle's
certificate of title, no such recordation shall be required) and to cause such
security interest to be prior to all other liens upon and security interests in
such Financed Vehicle that now exist or may hereafter arise or be created.

     (d) At any time (X) after the occurrence of a Servicer Termination Event, a
Potential Servicer Termination Event, a Termination Event or a Potential
Termination Event and upon the request of the Administrative Agent or, (Y) upon
the request by the Required APA Banks, the Servicer shall at its own expense
promptly take all such additional steps, if any, as are necessary to create and
maintain perfection of the security interest in the Financed Vehicle

                                       23
<PAGE>

related to each Receivable (and the proceeds of such Financed Vehicle) on behalf
of the Borrower and to create and maintain perfection of the security interest
in the Borrower's security interest in the Financed Vehicle related to each
Receivable (and the proceeds of such Financed Vehicle) on behalf of the
Administrative Agent, on behalf of the Secured Parties, including, if required
by applicable law, having a notation of the Borrower's and/or the Administrative
Agent's respective security interest recorded on such Financed Vehicle's
certificate of title.

     (e) (i) In the event that the assignment of a Receivable by the relevant
Seller to the Borrower hereunder and/or the pledge of such Receivable by the
Borrower to the Administrative Agent, on behalf of the Secured Parties, under
the Security and Funding Agreement are insufficient, without a notation on the
related Financed Vehicle's certificate of title, or without fulfilling any
additional administrative requirements under the laws of the state in which such
Financed Vehicle is located, to perfect a security interest in the related
Financed Vehicle (and the proceeds thereof) in favor of the Borrower or to
perfect a security interest in the Borrower's security interest in the related
Financed Vehicle (and the proceeds thereof) in favor of the Administrative
Agent, on behalf of the Secured Parties, the parties hereto (including, without
limitation, the relevant Seller) hereby agree that such Seller's designation as
the secured party on the certificate of title with respect to such Financed
Vehicle is in the relevant Seller's capacity as agent of the Borrower and the
Administrative Agent, on behalf of the Secured Parties, as their interests may
appear and the relevant Seller further agrees to hold such certificate of title
or other evidence of such designation in the case of a Paperless Title System as
the agent and custodian of the Borrower and the Administrative Agent, on behalf
of the Secured Parties, as their interests may appear. In furtherance of the
foregoing, the Borrower and the Administrative Agent hereby appoint each of the
Sellers as their nominee lienholder with respect to the applicable Financed
Vehicles securing the Receivables and each of the Sellers hereby agrees to serve
in such capacity as described herein. As stated lienholder on the certificates
of title to all of such Financed Vehicles, each of the Sellers agrees to take
any and all actions as the Borrower (with the consent of the Administrative
Agent) or the Administrative Agent may request in writing including, without
limitation, all actions for which the relevant Seller's consent, waiver,
release, vote or signature (or other action of similar nature) is necessary or
advisable in the judgment of the Borrower or the Administrative Agent in order
to maintain, preserve and protect the Borrower's security interest in such
Financed Vehicles and the Administrative Agent's security interest, on behalf of
the Secured Parties, in the Borrower's security interest in such Financed
Vehicles (provided, however, that, prior to (X) the occurrence of a Servicer
          --------  -------
Termination Event, a Potential Servicer Termination Event, a Termination Event
or a Potential Termination Event and the request by the Administrative Agent or,
(Y) at any time, the request by the Required APA Banks, for the recordation of
the Borrower's and/or the Administrative Agent's lien on such Financed Vehicle's
certificate of title, no such recordation shall be required) and if the relevant
Seller fails to take any or all such actions, the Administrative Agent or any
designee of the Administrative Agent, may take such actions at the sole expense
of such Seller, and each of the Sellers hereby grants to the Administrative
Agent and any such designee an irrevocable power of attorney and license to take
any and all such actions in such Seller's name and on behalf of such Seller. The
obligations of the Primary Seller under this Section are in addition to and in
no way limit the obligations of the Primary Seller in its capacity as Servicer
hereunder.

                                       24
<PAGE>

          (ii) Notwithstanding the fact that the Primary Seller will remain
noted as first lienholder on the applicable certificates of title to the
Financed Vehicles securing the Receivables on and after the date hereof, the
Sellers, the Borrower and the Administrative Agent each hereby agrees that, on
and after the date hereof:

               (1) subject to the terms of the Security and Funding Agreement,
the Borrower is entitled to all incidents, benefits and risks of a holder of a
first priority perfected security interest in and lien on such Financed
Vehicles;

               (2) the Administrative Agent, on behalf of the Secured Parties,
is entitled to all incidents, benefits and risks of a holder of a first priority
perfected security interest in and lien on the Borrower's first priority
perfected security interest in and lien on such Financed Vehicles and has the
right to exercise or cause the exercise of all remedies with respect to such
Financed Vehicles provided to it under the terms hereof and of the Security and
Funding Agreement;

               (3) the Sellers have no direct (or indirect, other than in
connection with the Seller's ownership interest in the Borrower) security
interest or other interest in such Financed Vehicles after giving effect to the
assignment hereunder by the Sellers to the Borrower of the Receivables secured
by such Financed Vehicles;

               (4) the Secondary Seller and the Primary Seller, except in its
capacity as Servicer hereunder, will take no action with respect to the Financed
Vehicles securing Receivables assigned to the Borrower hereunder and pledged to
the Administrative Agent under the Security and Funding Agreement unless such
action is consented to by the Administrative Agent; and

               (5) neither Seller shall represent to any lender, financing
source or other Person, that it has, or in any other manner hold itself out as
having, a security interest or any other rights or interests in the Financed
Vehicles, except for any rights it may have as nominee lienholder hereunder or
as Servicer hereunder.

          (f) Upon the occurrence of a Servicer Termination Event, the
Administrative Agent may instruct the Servicer to take or cause to be taken such
action as may be necessary to perfect or re-perfect the security interests in
the Financed Vehicles securing the Receivables in the name of the Borrower by
amending the title documents of such Financed Vehicles or by such other
reasonable means as may, in the opinion of counsel to the Required APA Banks, be
necessary or prudent. The Servicer hereby agrees to pay all expenses related to
such perfection or re-perfection and to take all action necessary therefor. In
addition, the Required APA Banks may instruct the Administrative Agent and the
Servicer to take or cause to be taken such action as may be necessary to perfect
or re-perfect the security interest in the Financed Vehicles underlying the
Receivables in the name of the Borrower, including by amending the title
documents of such Financed Vehicles or by such other reasonable means as may, in
the opinion of counsel to the Required APA Banks, be necessary or prudent. The
Servicer hereby appoints the Administrative Agent as its attorney-in-fact to
take any and all steps required to be performed by AFS pursuant to this Section
                                                                        -------
5.5(b) including, but not limited to, execution of certificates of
------
                                       25
<PAGE>

     title or any other documents in the name and stead of the Servicer, and the
     Administrative Agent hereby accepts such appointment.

          Section 5.6 Covenants, Representations, and Warranties of Servicer. By
                      ------------------------------------------------------
     its execution and delivery of this Agreement, the Servicer makes the
     following representations, warranties and covenants on which the Borrower
     is deemed to have relied in acquiring the Receivables and upon which the
     Secured Parties shall be deemed to have relied in making any Advance
     pursuant to the Security and Funding Agreement, as the case may be.

          The Servicer covenants as follows:

               (i) Liens in Force. The Financed Vehicle securing each Receivable
                   --------------
     shall not be released by the Servicer in whole or in part from the security
     interest granted under the Receivable, except upon payment in full of the
     Receivable or as otherwise contemplated herein.

               (ii) No Impairment. The Servicer shall do nothing to impair the
                    -------------
     rights of the Borrower or the Secured Parties in the Receivables, the
     Dealer Agreements, the Dealer Assignments, the Insurance Policies or the
     Other Conveyed Property.

               (iii) No Amendments. The Servicer shall not extend or otherwise
                     -------------
     amend the terms of any Receivable, except in accordance with Section 5.2.
                                                                  -----------

               (iv) Restrictions on Liens. The Servicer shall not: (i) create or
                    ---------------------
     incur or agree to create or incur, or consent to cause (upon the happening
     of a contingency or otherwise) the creation, incurrence or existence of any
     Lien or restriction on transferability of the Receivables or of any Other
     Conveyed Property except for the Lien in favor of the Administrative Agent
     for the benefit of the Secured Parties, and the restrictions on
     transferability imposed by this Agreement or (ii) sign or file under the
     Uniform Commercial Code of any jurisdiction any financing statement or sign
     any security agreement authorizing any secured party thereunder to file
     such financing statement, with respect to the Receivables or to any Other
     Conveyed Property, except in each case any such instrument solely securing
     the rights and preserving the Lien of the Administrative Agent, for the
     benefit of the Secured Parties. The Servicer will take no action to cause
     any Receivable to be evidenced by an instrument (as such term is defined in
     the Relevant UCC).

               (v) Adverse Interests. As of the date of each Servicer's
                   -----------------
     Acknowledgment: (i) it holds no adverse interest, by way of security or
     otherwise, in any Receivable; and (ii) the execution of this Agreement and
     the creation of the servicing and custodial relationship hereunder does not
     create any interest, by way of security or otherwise, of the Servicer in or
     to any Receivable, other than the Servicer's rights as servicer and
     Custodian hereunder.

               (vi) Insurance. The Servicer shall, at its own expense, maintain
                    ---------
     at all times during the existence of this Agreement and keep in full force
     and effect, a Fidelity Bond and Errors and Omissions Policy of a type and
     in such amount as is customary for custodians

                                       26
<PAGE>

engaged in the business of acting as custodian of automobile receivables and
shall maintain any other similar insurance policies that are customarily
maintained by custodians engaged in the business of acting as custodian of
automobile receivables. A certificate of the respective insurer as to each such
policy or a blanket policy for such coverage shall be furnished to the
Administrative Agent containing the insurer's statement or indorsement that such
insurance shall not terminate prior to receipt by such party, by certified mail,
of 10 days advance notice thereof.

     Section 5.7 Purchase of Receivables Upon Breach of Covenant. Upon discovery
                 -----------------------------------------------
by any of the Sellers, the Servicer, the Borrower, the Administrative Agent or
the Secured Parties of a breach of any of the covenants set forth in Sections
                                                                     --------
5.5 or 5.6, the party discovering such breach shall give prompt written notice
---    ---
to the others; provided, however, that the failure to give any such notice shall
               --------  -------
not affect any obligation of the Servicer under this Section 5.7. As of the last
                                                     -----------
day of the month following its discovery or receipt of notice of any breach of
any covenant set forth in Sections 5.5 or 5.6 which adversely affects any
                          ------------    ---
Receivable(s) (or the related Financed Vehicle) and/or the interests of the
Borrower and/or the Secured Parties therein (including any Defaulted or
Delinquent Receivable), the Servicer shall, unless such breach shall have been
cured in all material respects, purchase from the Borrower the Receivable
affected by such breach and, on the related Determination Date, the Servicer
shall pay the related Repurchase Obligation Amount by remitting such amount to
the Collection Account. It is understood and agreed that the obligation of the
Servicer to purchase any Receivable (including any Delinquent or Defaulted
Receivable) with respect to which such a breach has occurred and is continuing
shall, if such obligation is fulfilled, constitute the sole remedy against the
Servicer for such breach available to the Borrower, the Secured Parties or the
Administrative Agent; provided, however, that the Servicer shall indemnify the
                      --------  -------
Borrower, the Backup Servicer, the Administrative Agent and the Secured Parties
against all costs, expenses, losses, damages, claims and liabilities, including
reasonable fees and expenses of counsel, which may be asserted against or
incurred by any of them as a result of third party claims arising out of the
events or facts giving rise to such breach.

     Section 5.8 Total Servicing Fee; Payment of Certain Expenses by Servicer.
                 ------------------------------------------------------------
On each Distribution Date, the Servicer shall be entitled to receive out of the
Collection Account the Base Servicing Fee and any Supplemental Servicing Fee for
the related Collection Period pursuant to Section 6.8 (the "Servicing Fee"). The
                                          -----------       -------------
Servicer shall be required to pay all expenses incurred by it in connection with
its activities under this Agreement (including taxes imposed on the Servicer and
expenses incurred in connection with distributions and reports made by the
Servicer to the Secured Parties). The Servicer shall be liable for the fees and
expenses of the Backup Servicer, the Lockbox Bank and the Independent
Accountants; provided, however, that any successor to AFS as Servicer (including
             --------  -------
the Backup Servicer) shall not be liable for such fees and expenses which shall,
in such event, be the responsibility of the Borrower.

     Section 5.9 Certain Servicer's Certificates.
                 -------------------------------

     (a) No later than 1:00 P.M. (New York time) two Business Days prior to a
Distribution Date, the Servicer shall deliver to the Administrative Agent, the
Backup Servicer and each Rating Agency a Servicer's Determination Date
Certificate executed by a Responsible Officer of the Servicer in substantially
the form of Exhibit B-1 hereto and including such credit

                                       27
<PAGE>

and other information as the Administrative Agent may reasonably request with
respect to the Managed Assets, including newly originated Managed Assets.

     (b) In addition, in connection with any Optional Prepayment pursuant to the
Security and Funding Agreement, unless such Optional Prepayment is to be
effected on a Distribution Date (in which case the relevant calculations with
respect to such Optional Prepayment shall be reflected in the applicable
Servicer's Determination Date Certificate), the Servicer shall deliver to
Administrative Agent, the Backup Servicer and each Rating Agency a Servicer's
VFN Prepayment Date Certificate in substantially the form of Exhibit B-2 hereto.
Such Servicer's VFN Prepayment Date Certificate shall be delivered to the
Administrative Agent in draft form by 1:00 p.m. two Business Days, and in final
form by 1:00 p.m. one Business Day, prior to the contemplated VFN Prepayment
Date.

     Section 5.10 Annual Statement as to Compliance, Notice of Servicer
                  -----------------------------------------------------
Termination Event.
-----------------

     (a) The Servicer shall deliver to the Administrative Agent, the Backup
Servicer and each Rating Agency, on or before April 30 of each year, an
Officer's Certificate, dated as of December 31 of the preceding year, stating
that (i) a review of the activities of the Servicer during the preceding
12-month period (or such other period as shall have elapsed from the Effective
Date to the date of the first such certificate) and of its performance under
this Agreement has been made under such officer's supervision, and (ii) to such
officer's knowledge, based on such review, the Servicer has fulfilled all its
obligations under this Agreement throughout such 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.

     (b) The Servicer shall deliver to the Administrative Agent, the Backup
Servicer and each Rating Agency, promptly after having obtained knowledge
thereof, but in no event later than two (2) Business Days thereafter, written
notice in an Officer's Certificate of any event which with the giving of notice
or lapse of time, or both, would become a Servicer Termination Event under
Section 9.1.
-----------

     Section 5.11 Annual Independent Accountants' Report; Quarterly Reviews.
                  ---------------------------------------------------------

     (a) The Servicer shall cause a firm of nationally recognized independent
certified public accountants who shall be selected by the Servicer and
acceptable to the Administrative Agent (the "Independent Accountants"), who may
                                             -----------------------
also render other services to the Servicer or to either Seller, to deliver to
the Administrative Agent, the Backup Servicer and each Rating Agency, on or
before October 31 (or 120 days after the end of the Servicer's fiscal year, if
other than June 30) of each year, beginning on October 31, 2001, with respect to
the twelve months ended the immediately preceding June 30 (or other applicable
date) (or such other period as shall have elapsed from the Effective Date to the
date of such certificate), a statement (the "Accountants' Report") addressed to
                                             -------------------
the Board of Directors of the Servicer and to the Administrative Agent and the
Backup Servicer, to the effect that such firm has audited the books and records
of AmeriCredit, in which the Servicer is included as a consolidated subsidiary,
and issued its report thereon in connection with the audit report on the
consolidated financial

                                       28
<PAGE>

statements of AmeriCredit (such consolidated financial statements delivered
pursuant to Section 2.3(d) hereof) and that (1) such audit was made in
            --------------
accordance with generally accepted auditing standards, and accordingly included
such tests of the accounting records and such other auditing procedures as such
firm considered necessary in the circumstances; and (2) the firm is independent
of the Sellers and the Servicer within the meaning of the Code of Professional
Ethics of the American Institute of Certified Public Accountants.

     (b) Each of the Custodian and the Servicer will furnish to the
Administrative Agent from time to time such information with respect to it and
the Receivables as the Administrative Agent may reasonably request. Each of the
Custodian and the Servicer will, from time to time during regular business hours
as requested by the Administrative Agent upon reasonable notice and at the sole
cost of the Servicer, permit the Administrative Agent, or its agents or
representatives, (i) to examine and make copies of and abstracts from all
records in the possession or under the control of such person relating to the
Receivables, the Other Conveyed Property related thereto and the Asset Backed
Securities, including, without limitation, the related Contracts and ABS
Documents, and (ii) to visit the offices and properties of such Person for the
purpose of examining such materials described in clause (i) above, and to
discuss matters relating to such Person's financial condition or the
Receivables, the Other Conveyed Property and the Asset Backed Securities or any
Person's performance under any of the Basic Agreements or any Person's
performance under the Contracts and, in each case, with any of the officers or
employees of such Person having knowledge of such matters; provided, however,
that unless a Potential Termination Event, a Termination Event, a Potential
Servicer Termination Event or a Servicer Termination Event has occurred and is
continuing, such visits shall be conducted no more than twice per calendar year
and the aggregate costs and expenses for which the Servicer shall be liable
pursuant to this Section 5.11(b) shall be limited to $30,000 per calendar year.
                 ---------------

     (c) The Independent Accountants shall undertake a semi-annual data
integrity review substantially in the form of Exhibit F hereto, as such Exhibit
F may from time to time be amended by agreement of the Borrower and the
Administrative Agent, with the consent of the Required Lending Groups; the
report of Independent Accountants on the results of such data integrity review
shall be completed and delivered to the Administrative Agent, the Borrower, and
the Servicer within 20 days following the completion of the review. If
Receivables constituting Collateral are less than 5% of the aggregate principal
amount of assets constituting any asset backed transaction each such data
integrity review shall include an examination of (i) 30 Receivable Files with
respect to Receivables which are included in the Collateral, if as of the last
day of any such calendar quarter the daily average Aggregate Net Investment for
such quarter attributable to Receivables is 50% or less of the daily average
Maximum Facility Limit for such quarter and (ii) 75 Receivable Files with
respect to Receivables which are included in the Collateral, if as of the last
day of any such calendar quarter the daily average Aggregate Net Investment for
such quarter attributable to Receivables is more than 50% of the daily average
Maximum Facility Limit for such quarter. If Receivables constituting Collateral
are equal to or greater than 5% of the aggregate principal amount of assets
constituting any asset backed transaction each such data integrity review shall
include the examination of at least "X" Receivables Files with respect to
Receivables which are included in the Collateral, where "X" is the number equal
to the product of (i) the number of receivables included in such data integrity
review and (ii) a fraction the numerator of which is the number of

                                       29
<PAGE>

Receivables included in the Collateral and the denominator of which is the total
number of receivables (including Receivables) included in the pool of
receivables subject to any such asset backed transaction.

     Section 5.12 Access to Certain Documentation and Information Regarding the
                  -------------------------------------------------------------
Receivables. The Servicer shall provide to representatives of the Borrower, the
-----------
Administrative Agent and the Backup Servicer reasonable access to the Receivable
Files and all other documentation regarding the Receivables. In each case, such
access shall be afforded without charge but only upon reasonable request and
during normal business hours. Nothing in this Section shall derogate from 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 as provided in this Section as a result of such obligation shall
not constitute a breach of this Section.

     Section 5.13 Monthly Tape. On or before the Determination Date, but in no
                  ------------
event later than the eighth (8th) calendar day, of each month, the Servicer will
deliver to the Backup Servicer a computer tape or a diskette (or any other
electronic transmission acceptable to the Administrative Agent and the Backup
Servicer) in a format acceptable to the Backup Servicer containing the
information with respect to the Receivables as of the preceding Accounting Date
necessary for preparation of the Servicer's Determination Date Certificate
relating to the immediately succeeding Determination Date and necessary to
determine the application of collections as provided in Section 6.4. The Backup
                                                        -----------
Servicer shall use such tape or diskette (or other electronic transmission
acceptable to the Backup Servicer) to verify the Servicer's Determination Date
Certificate delivered by the Servicer, and the Backup Servicer shall certify to
the Administrative Agent that it has verified the Servicer's Determination Date
Certificate in accordance with this Section 5.13 and shall notify the Servicer
                                    ------------
and the Administrative Agent of any discrepancies, in each case, on or before
the second Business Day following the Determination Date. In the event that the
Backup Servicer reports any discrepancies, the Servicer and the Backup Servicer
shall attempt to reconcile such discrepancies prior to the related Distribution
Date, but in the absence of a reconciliation, the Servicer's Determination Date
Certificate shall control for the purpose of calculations and distributions with
respect to the related Distribution Date. In the event that the Backup Servicer
and the Servicer are unable to reconcile discrepancies with respect to a
Servicer's Determination Date Certificate by the related Distribution Date, the
Servicer shall cause the Independent Accountants, at the Servicer's expense, to
audit the Servicer's Determination Date Certificate and, prior to the next
succeeding Determination Date, reconcile the discrepancies. The effect, if any,
of such reconciliation shall be reflected in the Servicer's Determination Date
Certificate for such next succeeding Determination Date. In addition, upon the
occurrence of a Servicer Termination Event the Servicer shall, if so requested
by the Administrative Agent, deliver to the Backup Servicer its Collection
Records and its Monthly Records within 5 Business Days after demand therefor and
a computer tape, or other electronic transmission acceptable to the Backup
Servicer, containing as of the close of business on the date of demand all of
the data maintained by the Servicer in computer format in connection with
servicing the Receivables. Other than the duties specifically set forth in this
Agreement, the Backup Servicer shall have no obligations hereunder, including,
without limitation, to supervise, verify, monitor or administer the performance
of the Servicer. The Backup Servicer shall have no liability for any actions
taken or omitted by the Servicer.

                                       30
<PAGE>

     Section 5.14 Retention and Termination of Servicer. The Servicer hereby
                  -------------------------------------
covenants and agrees to act as such under this Agreement during the term of the
Facility, as such term may be extended pursuant to the Security and Funding
Agreement, unless the Servicer is terminated pursuant to Article IX hereof, or
is permitted to resign pursuant to Section 8.6 hereof.
                                   -----------

     Section 5.15 Fidelity Bond and Errors and Omissions Policy. The Servicer
                  ---------------------------------------------
has obtained, and shall continue to maintain in full force and effect, a
Fidelity Bond and Errors and Omissions Policy of a type and in such amount as is
customary for servicers engaged in the business of servicing automobile
receivables.

                                   ARTICLE VI

  Collection Account; ABS Account; Distributions; Statements to Secured Parties
  -----------------------------------------------------------------------------

          Section 6.1 Establishment of Collection Account and ABS Account.
                      ---------------------------------------------------

          (a) The Administrative Agent, on behalf of the Secured Parties, shall
     establish, at the Securities Intermediary, and maintain in its own name an
     account that is an Eligible Account (the "Collection Account") bearing a
                                               ------------------
     designation clearly indicating that the funds deposited therein are held
     for the benefit of the Administrative Agent on behalf of the Secured
     Parties. The Administrative Agent, on behalf of the Secured Parties, shall
     also establish, at the Securities Intermediary, and maintain in its own
     name an account that is an Eligible Account (the "ABS Account") bearing a
                                                       -----------
     designation clearly indicating that any certificates representing the Asset
     Backed Securities deposited therein are held for the benefit of the
     Administrative Agent on behalf of the Secured Parties. The Collection
     Account and the ABS Account shall initially be established with Bank One
     Columbus in its capacity as a Securities Intermediary.

          (b) Funds on deposit in the Collection Account and/or any other
     account established pursuant to Section 6.1(f)(i) (each such account, a
                                     -----------------
     "Pledged Account"), in excess of $25,000 shall be invested by the
      ---------------
     Administrative Agent in Eligible Investments selected by the Administrative
     Agent in its discretion among Eligible Investments specified in standing
     written instructions of the Borrower, or, in the absence of such
     instructions, solely in the discretion of the Administrative Agent. All
     such Eligible Investments shall be held by Administrative Agent for the
     benefit of the Secured Parties, and funds on deposit in any Pledged Account
     shall be invested in Eligible Investments having maturities that are
     determined by the Administrative Agent to be consistent with the cashflow
     requirements of the CP Lender (as notified to the Borrower by the
     Administrative Agent), including availability of funds for the payment of
     maturing Commercial Paper, and that in any event will mature no later than
     the close of business on the Business Day immediately preceding the
     following Distribution Date. Funds deposited in a Pledged Account on the
     day immediately preceding a Distribution Date are required to be invested
     overnight. All Eligible Investments made in accordance with this subsection
     will be held to maturity, except to the extent otherwise required in
     connection with an acceleration of indebtedness pursuant to the terms of
     the Security and Funding Agreement.

                                       31
<PAGE>

          (c) All investment earnings of moneys deposited in the Pledged
     Accounts shall be deposited (or caused to be deposited) by the
     Administrative Agent in the Collection Account, and any loss resulting from
     such investments shall be charged to such account. The Borrower will not
     direct the Administrative Agent to make any investment of any funds held in
     any of the Pledged Accounts unless the security interest granted and
     perfected in such account will continue to be perfected in such investment,
     in either case without any further action by any Person, and, in connection
     with any direction to the Administrative Agent to make any such investment,
     if requested by the Administrative Agent, the Borrower shall deliver to the
     Administrative Agent an Opinion of Counsel, acceptable to the
     Administrative Agent, to such effect. Any such direction shall be subject
     to the requirements of Section (f)(ii)(3) below.
                            ------------------

          (d) Neither the Administrative Agent nor any Securities Intermediary
     shall in any way be held liable by reason of any insufficiency in any of
     the Pledged Accounts resulting from any loss on any Eligible Investment
     included therein except for losses attributable to the Administrative
     Agent's or the Securities Intermediary's gross negligence or willful
     misconduct (provided that the foregoing shall not be deemed to relieve the
                 --------
     Administrative Agent or the Securities Intermediary of any liability in its
     individual capacity as an issuer of any Eligible Investment for failure to
     make payments thereon in accordance with the terms thereof).

          (e) It is expressly acknowledged and agreed that the Administrative
     Agent is authorized hereby to direct the purchase of investments
     constituting Eligible Investments (i) from any Affiliate of the
     Administrative Agent, including securities that are underwritten, placed or
     dealt in by any such Affiliate and/or from management investment companies
     of which the Administrative Agent (in its individual capacity) or any
     Affiliate is an investment advisor, administrator, shareholder, servicing
     agent and/or custodian, or (ii) that involve the Administrative Agent (in
     its individual capacity) or an Affiliate of the Administrative Agent as a
     participant or counterparty. It is further acknowledged and agreed that the
     Administrative Agent (in its individual capacity) and/or such Affiliates
     may receive advisory fees, referral fees and other compensation in
     connection with such services that are distinct from the fees, charges and
     expenses of the Administrative Agent under or in connection with any of the
     Basic Agreements.

          (f) (i) The Administrative Agent on behalf of the Secured Parties,
     shall possess all right, title and interest in and to all funds on deposit
     from time to time in the Pledged Accounts and in and to all proceeds
     thereof and all such funds, investments, proceeds and income shall be part
     of the Conveyed Assets. Except as otherwise provided herein, the Pledged
     Accounts shall be under the sole dominion and control and the "control"
     (within the meaning of the New York UCC) of the Administrative Agent for
     the benefit of the Secured Parties; provided however that the
     Administrative Agent and the Borrower hereby agree that pursuant to that
     certain Securities Account Control Agreement dated as of May 31, 2001
     between the Administrative Agent and the Borrower, the Administrative Agent
     will not issue any "entitlement order" (as such term is used in such
     agreement) unless a Termination Event has occurred hereunder. If, at any
     time, any of the Pledged Accounts ceases to be an Eligible Account, the
     Administrative Agent (or the Servicer on its behalf) shall within five
     Business Days (or such longer period as to which each Rating Agency and the
     Administrative Agent may consent) establish a new Pledged Account as an
     Eligible Account and shall transfer any cash

                                       32
<PAGE>

     and/or any investments to such new Pledged Account. In connection with the
     foregoing, the Servicer agrees that, in the event that any of the Pledged
     Accounts are not accounts with the Administrative Agent, the Servicer shall
     notify the Administrative Agent in writing immediately upon any of such
     Pledged Accounts ceasing to be an Eligible Account.

               (ii) With respect to the Conveyed Assets, the Administrative
          Agent agrees and Borrower agrees to cause that:

                    (1) any Conveyed Asset that is held in deposit accounts
               (within the meaning of the New York UCC) shall be held solely in
               Eligible Deposit Accounts; and, except as otherwise provided
               herein, each such Eligible Deposit Account shall be subject to
               the exclusive custody and control of the Administrative Agent,
               and the Administrative Agent shall have sole signature authority
               with respect thereto;

                    (2) with respect to all other Conveyed Property, Conveyed
               Securities or Collateral not listed in subparagraph (1) above,
               any Conveyed Property, Conveyed Securities or Collateral invested
               in Eligible Investments shall be delivered to the Administrative
               Agent by (x) causing such Eligible Investments to be either (A)
               physically delivered to the financial institution then
               maintaining a Pledged Account (such institution being referred to
               as a "Pledged Accounts Securities Intermediary") together with
               any necessary indorsements, (B) causing such Eligible Investments
               to be credited to a securities account in the name of the Pledged
               Accounts Securities Intermediary or (C) taking such other actions
               as the Securities Intermediary may request to make the Securities
               Intermediary the owner thereof and (y) causing the Pledged
               Account Securities Intermediary to create a Security Entitlement
               (or a United States Securities Entitlement, when applicable) in
               such Pledged Account with respect to such Eligible Investment by
               indicating by book-entry that such Eligible Investment has been
               credited to such Pledged Account;

                    (3) the Administrative Agent shall only invest in Eligible
               Investments which the applicable Pledged Account Securities
               Intermediary agrees to credit to the applicable Pledged Account
               and agrees to treat as a "financial asset" within the meaning of
               the Relevant UCC;

                    (4) any Conveyed Property, Conveyed Security or Collateral
               may be delivered: (i) upon the instruction of the Administrative
               Agent, by any additional or alternative procedures as may
               hereafter become appropriate, in the sole judgment of the
               Administrative Agent, under applicable law or regulations or the
               interpretation thereof to obtain and maintain a first priority
               perfected security interest in any such Conveyed Property,
               Conveyed Security or Collateral in favor of the Administrative
               Agent on behalf of the Secured Parties, or (ii) upon the request
               of the Borrower or the Servicer and the consent of the
               Administrative Agent, by any additional or alternative procedures
               that will, in the written opinion of counsel, create and maintain
               a first priority perfected security interest in any such Conveyed
               Property, Conveyed Security or Collateral in favor of the
               Administrative Agent on behalf of the Secured Parties.

                                       33
<PAGE>

               (g) The Servicer shall have the power, revocable by the
          Administrative Agent, to instruct the Administrative Agent to make
          withdrawals and payments from the Collection Accounts for the purpose
          of permitting each of the Servicer and the Administrative Agent to
          carry out its respective duties hereunder.

               (h) Notwithstanding anything else contained herein, the
          Administrative Agent agrees that, with respect to each Pledged
          Account, it will cause each Securities Intermediary establishing such
          Pledged Account to enter into an agreement pursuant to which the
          Administrative Agent, for the benefit of the Secured Parties, shall
          have "control" (within the meaning of Section 8-106 of the New York
          UCC) of such Pledged Account and all securities, investment property,
          financial assets, investments and other property credited thereto from
          time to time; provided that each such agreement entered into between
                        --------
          the Administrative Agent and any Securities Intermediary shall, in the
          opinion of special counsel to the Secured Parties, be effective to
          perfect by "control" (within the meaning of Section 8-106 of the New
          York UCC) the security interest of the Administrative Agent for the
          benefit of the Secured Parties in such Pledged Account and property
          credited thereto.

               Section 6.2 Receivables Reserve Account; ABS Reserve Account.
                           ------------------------------------------------

               (a) At all times during the term of the Facility, the Borrower
          shall maintain on deposit in the Receivables Reserve Account the
          Receivables Reserve Account Minimum and on deposit in the ABS Reserve
          Account the ABS Reserve Account Minimum. In the event that either the
          Receivables Reserve Account or the ABS Reserve Account shall fall
          below the Receivables Reserve Account Minimum or the ABS Reserve
          Account Minimum, respectively, then, as promptly as possible and in no
          event later than five Business Days following such event (or, if
          sooner, the next contemplated Funding Date pursuant to the Security
          and Funding Agreement), the Borrower shall pay to the Administrative
          Agent, for deposit in the Receivables Reserve Account or the ABS
          Reserve Account, as appropriate, the Receivables Reserve Account
          Shortfall or the ABS Reserve Account Shortfall, as applicable (it
          being understood that the deposit of any required Receivables Reserve
          Account Shortfall or ABS Reserve Account Shortfall by the Borrower
          shall be a condition precedent to the occurrence of any Funding on
          such contemplated Funding Date).

               (b) Prior to the occurrence of a Termination Event, on any
          Distribution Date, after application of Available Funds as set forth
          in clauses (i) through (xvi) of Section 6.8(a) hereof, funds on
                                          --------------
          deposit in the Receivables Reserve Account that are in excess of the
          higher of (i) the Receivables Reserve Account Minimum and (ii) 6.00%
          of that portion of the VFN Balance attributable to Receivables, shall
          be available for distribution to the Borrower in accordance with
          Section 6.8(a) hereof. Further, in connection with an Optional
          --------------
          Prepayment of the VFN, and after payment of (i) all obligations to the
          CP Lender required in connection with such prepayment and (ii) all
          other costs and expenses related to such prepayment (and provided that
                                                                   --------
          no Termination Event is then in existence and that the Commitment
          Expiry Date has not occurred), then, funds on deposit in the
          Receivables Reserve Account that are in excess of the Receivables
          Reserve Account Minimum may be released to the Borrower in an amount
          determined as follows: the product of (A) the Receivables Reserve
          Account and (B) a fraction, the numerator of which is the Principal
          Balance of Receivables released in connection with the

                                       34
<PAGE>

prepayment that had been included in the Receivables Pool Balance, and the
denominator of which is the Receivables Pool Balance before giving effect to the
prepayment; provided that the Receivables Reserve Account shall be maintained in
            --------
an amount at least equal to the Receivables Reserve Account Minimum after such
distribution. So long as no Termination Event has occurred and is continuing,
funds in the ABS Reserve Account in excess of the ABS Reserve Account Minimum
may be released to the Borrower on each Distribution Date.

     Following the occurrence of a Termination Event, all amounts on deposit in
the Receivables Reserve Account and the ABS Reserve Account shall be applied to
reduce the VFN Balance.

     Section 6.3  Certain Reimbursements to the Servicer. The Servicer will be
                  --------------------------------------
entitled to be reimbursed from amounts on deposit in the Collection Account with
respect to a Collection Period for amounts previously deposited in the
Collection Account but later determined by the Servicer to have resulted from
mistaken deposits or postings or checks returned for insufficient funds. The
amount to be reimbursed hereunder shall be paid to the Servicer on the related
Distribution Date pursuant to Section 6.8 upon certification by the Servicer of
                              -----------
such amounts and the provision of such information to the Administrative Agent
as may be necessary in the opinion of the Administrative Agent to verify the
accuracy of such certification. In the event that the Administrative Agent has
not received evidence satisfactory to it of the Servicer's entitlement to
reimbursement pursuant to this Section, the Administrative Agent shall give
notice to such effect.

     Section 6.4  Application of Collections. All collections for the Collection
                  --------------------------
Period shall be applied by the Servicer as follows:

     With respect to each Receivable (other than a Repurchased Receivable),
payments by or on behalf of the Obligor, (other than Supplemental Servicing Fees
with respect to such Receivable, to the extent collected) shall be applied to
interest and principal in accordance with the Simple Interest Method.

     All amounts collected that are payable to the Servicer as Supplemental
Servicing Fees hereunder shall be deposited in the Collection Account and paid
to the Servicer in accordance with Section 5.8.
                                   -----------

     Section 6.5  Servicer Advances. In the event that, on any date, there are
                  -----------------
not sufficient Available Funds to pay the sum of the amounts described in
Section 6.8(a), clauses (i), (iii)(B), (v) and (vi), due and payable on such
-------------
date, the Servicer shall advance an amount equal to such amounts due and payable
on such date (each, a "Servicer Advance"), provided that the Servicer shall not
                                           --------
make such an advance to the extent that it does not reasonably expect, after
reasonable inquiry, to be reimbursed for such advance from the collections on
the Receivables and the Asset Backed Securities.

     Section 6.6  Application of Funds from the Receivables Reserve Account and
                  -------------------------------------------------------------
the ABS Reserve Account; Special Withdrawals from the Collection Account.
------------------------------------------------------------------------

                                       35
<PAGE>

     (a) In the event that the Servicer's Determination Date Certificate with
respect to any Determination Date shall state that the amount of the Available
Funds with respect to such Determination Date is less than the sum of the
amounts payable on the related Distribution Date pursuant to clauses (i) through
(xv) of Section 6.8(a) (such amount, an "Available Funds Deficiency"), then, on
        --------------                   --------------------------
the Business Day preceding the related Distribution Date, the Administrative
Agent shall withdraw funds in an amount equal to the Available Funds Deficiency
for the payment of such amounts, (i) for so long as no Termination Event has
occurred and is continuing, (A) to the extent that the Aggregate ABS Yield
Shortfall is greater than zero, from the ABS Reserve Account, but only to the
extent of such Aggregate ABS Yield Shortfall, and (B) in all other cases, from
the Receivables Reserve Account, and (ii) for so long as a Termination Event has
occurred and is continuing, (A) first, from the Receivables Reserve Account and
(B) second, from the ABS Reserve Account.

     (b) Notwithstanding anything in this Agreement or any other Basic Agreement
to the contrary, to the extent that the CP Lender notifies the Administrative
Agent with respect to any date other than a Distribution Date that the CP Lender
has insufficient funds on hand to pay any portion of the CP Costs payable on
such date, then the Administrative Agent may immediately withdraw the necessary
amount from the Collection Account, and, if necessary, from the either the
Receivables Reserve Account or the ABS Reserve Account, and make available such
amounts for distribution to the CP Lender on such date. The Administrative Agent
shall give notice to the Borrower and the Servicer by telephone as promptly as
practicable and in any event no later than the Business Day following such
withdrawal, such notice to be promptly confirmed in writing.

     Section 6.7  Additional Deposits. The Servicer or the relevant Seller, as
                  -------------------
applicable, shall deposit or cause to be deposited in the Collection Account, on
the Determination Date following the date on which such obligations are due, the
aggregate Repurchase Obligation Amount or the aggregate ABS Repurchase
Obligation Amount, as applicable, with respect to Repurchased Receivables or
Repurchased Asset Backed Securities, as applicable.

     Section 6.8  Distributions.
                  -------------

     (a) No later than 1:00 P.M. (New York time) on each Distribution Date, the
Administrative Agent shall cause to be made the following transfers and
distributions from the Collection Account in accordance with the following
priorities (such transfers and distributions to be based solely on the
information contained in the Servicer's Determination Date Certificate delivered
on the related Determination Date, subject however (A) in the case of clause
                                   ---------------
(xi) below to the effect of any intervening Funding, in which case the relevant
information shall be as updated in the relevant Servicer's Receivables Sale Date
Certificate or the relevant Servicer's ABS Sale Date Certificate, as the case
may be, and (B) to the occurrence of an intervening Termination Event):

          (i)   to the Hedge Counterparty, any Scheduled Hedge Payments owing to
     such Hedge Counterparty under the terms of the related Hedge Contract;

                                       36
<PAGE>

          (ii)  to the Servicer, to repay any outstanding Servicer Advances;

          (iii) on a pari passu, basis (A) to each of the Lockbox Banks, the
     Trustee, the Backup Servicer, the Collateral Agent and the Independent
     Accountants, its respective accrued and unpaid fees and reasonable
     out-of-pocket expenses (in each case, only to the extent such fees and
     expenses have not been previously paid when due by the Servicer), provided
     that, so long as the Servicer is also the Custodian, such fees shall not
     exceed (x) $100,000 in the aggregate in any calendar year to the Trustee
     and (y) $200,000 in the aggregate in any calendar year to the Lockbox
     Banks, the Backup Servicer and the Independent Accountants and (B) any
     amounts owing to the Lockbox Bank as reimbursement for checks that have
     been credited to the Lockbox Account and are not collectible in accordance
     with the procedures specified in the Lockbox Agreement;

          (iv)  to the Servicer, the Base Servicing Fee and any Supplemental
     Servicing Fees for the related Collection Period (as well as any amounts
     specified in Section 6.3, to the extent the Servicer has not reimbursed
                  -----------
     itself in respect of such amounts pursuant to Section 6.3 and to the extent
                                                   -----------
     not retained by the Servicer), but less the total of any fees and expenses
                                        ----
     to be paid to the Lockbox Bank(s), the Servicer, the Independent
     Accountants or the Backup Servicer pursuant to clauses (iii)(A) or (v) to
     the extent that such amounts have not been previously paid by the Servicer;

          (v)   to the Backup Servicer (or any successor Servicer) to pay
     servicing fees (in the case of the Backup Servicer, only to the extent such
     fees have not been previously paid when due by the Servicer);

          (vi)  to the Administrative Agent for the benefit of the Secured
     Parties, the following amounts in the following priority:

               (1) CP Costs (without including Spread, as referenced in the
          definition of "CP Costs") and Accrued Interest with respect to such
          Collection Period;

               (2) any past due CP Costs (without including Spread, as
          referenced in the definition of "CP Costs") and any past due interest
          due and owing to the APA Banks under the Security and Funding
          Agreement (in each case, together with interest at the default rate
          specified therein) with respect to prior Collection Periods not to
          exceed the Capped Amount; and

               (3) in accordance with the terms of the Fee Letter, the Program
          Fee and the Commitment Fee accrued from the first day through the last
          day of such Collection Period, whether or not such amounts are payable
          during such Collection Period, together with any and all other amounts
          then due under in accordance with the terms of the Fee Letter;

          (vii) to the Administrative Agent for the benefit of the Secured
     Parties, the Targeted Monthly Principal Payment;

                                       37
<PAGE>

          (viii) following any replacement of the Servicer, to the Backup
     Servicer to pay the reasonable costs of transition, including any required
     re-liening of the Financed Vehicles, to the extent such costs have not been
     paid by the terminated Servicer;

          (ix)   the costs of the Secured Parties with respect to the operation
     of the Yield Protection Provision, on a pari passu basis;
                                             ---- -----

          (x)    after the occurrence of the first to occur of the Commitment
     Expiry Date or a Termination Event, the remainder to the Administrative
     Agent for the benefit of the Secured Parties to reduce the VFN Balance;

          (xi)   prior to the occurrence of the Commitment Expiry Date or a
     Termination Event, the balance, if any, to the Receivables Reserve Account,
     until the Receivables Reserve Account is equal to the greater of (i) 6.00%
     of that portion of the VFN Balance attributable to the Receivables and (ii)
     the greater of $500,000 and 1.00% of the Receivables Pool Balance;

          (xii)  prior to the occurrence of the Commitment Expiry Date or a
     Termination Event, the balance, if any, to the ABS Reserve Account until
     the balance in the ABS Reserve Account equals the ABS Reserve Account
     Minimum;

          (xiii) to the Administrative Agent for the benefit of the Secured
     Parties any indemnity amounts owing by the Borrower to the Secured Parties
     pursuant hereto (other than those described in clause (ix) above) or
     pursuant to Section 3.4 of the Security and Funding Agreement;

          (xiv)  to the Hedge Counterparty any amounts other than Scheduled
     Hedge Payments owing under any Hedge Contract;

          (xv)   without duplication, to the Administrative Agent for payment of
     any other costs, expenses and other amounts due and owing to the Secured
     Parties and the Administrative Agent pursuant to this Agreement and the
     other Basic Agreements that are accrued and unpaid during such Collection
     Period, together with any unpaid costs and expenses due and owing to the
     Secured Parties and the Administrative Agent from prior Collection Periods;
     and

          (xvi)  any remaining funds will then be paid to the Borrower;
     provided, however, that following the occurrence of a Termination Event no
     --------  -------
     such distribution shall be made to the Borrower until after payment of any
     and all other amounts owed by the Borrower to the Secured Parties under or
     in connection with any Basic Agreement, including, without limitation, any
     costs and expenses incurred in connection with such Termination Event.

     If funds in the Collection Account are insufficient to pay in full any of
the amounts due and owing to the Secured Parties in clauses (i) through (xv) of
this Section 6.8(a), the Administrative Agent shall distribute amounts then on
     --------------
deposit in the Receivables Reserve Account and the ABS Reserve Account in
accordance with Section 6.6(a).
                --------------

                                       38
<PAGE>

     (b) In the event that the Collection Account is maintained with an
institution other than the Administrative Agent, the Servicer shall instruct and
cause such institution to make all deposits and distributions pursuant to
Section 6.8(a) on the related Distribution Date.
--------------

     (c) In the event that any withholding tax is imposed on any payment by the
Borrower (or allocations of income) to a Secured Party, the Borrower shall be
obligated to indemnify such Secured Party (or Parties) for such taxes pursuant
to the Security and Funding Agreement. Without limiting the obligations of the
Borrower under the Security and Funding Agreement, or the rights of the Secured
Parties in the event of the Borrower's failure to make full and timely payment
of any amounts owing pursuant to Article IV thereof, the Administrative Agent is
hereby authorized and directed to retain from amounts otherwise distributable to
the Secured Parties sufficient funds for the payment of any tax that is legally
owed by the Borrower. The amount of any withholding tax imposed with respect to
a Secured Party shall be treated as cash distributed to such Secured Party at
the time it is withheld by the Borrower or the Administrative Agent and remitted
to the appropriate taxing authority. If there is a possibility that withholding
tax is payable with respect to a distribution (such as a distribution to a non-
US Secured Party), the Administrative Agent may in its sole discretion withhold
such amounts in accordance with this clause (c). In the event that a Secured
Party wishes to apply for a refund of any such withholding tax, the
Administrative Agent shall reasonably cooperate with such Secured Party in
making such claim so long as such Secured Party agrees to reimburse the
Administrative Agent for any out-of-pocket expenses incurred.

     (d) Distributions required to be made to Secured Parties on any
Distribution Date shall be made in immediately available funds, to the account
of the Administrative Agent for distribution to such Secured Party at a bank or
other entity having appropriate facilities therefor.

     (e) Subject to Section 6.1 and this section, monies received by the
                    -----------
Administrative Agent hereunder need not be segregated in any manner except to
the extent required by law and may be deposited under such general conditions as
may be prescribed by law, and the Administrative Agent shall not be liable for
any interest thereon.

                                  ARTICLE VII

                                  The Sellers
                                  -----------

     Section 7.1  Representations and Warranties of Sellers. Each of the Sellers
                  -----------------------------------------
makes the following representations as to itself and the relevant property
conveyed by it on which the Borrower is deemed to have relied in acquiring the
Receivables and the Asset Backed Securities and on which the Secured Parties
have relied in advancing funds to the Borrower under the Security and Funding
Agreement. The representations speak as of the execution and delivery of this
Agreement and as of each Receivables Sale Date and each ABS Sale Date, as
applicable, with respect to the Receivables or the Asset Backed Securities, as
applicable, sold on such date, and shall survive the sale of the Receivables or
the Asset Backed Securities, as

                                       39
<PAGE>

     applicable, to the Borrower and the pledge thereof to the Administrative
     Agent on behalf of the Secured Parties.

          (a) Organization and Good Standing. The Sellers have been duly
              ------------------------------
     organized and are validly existing as corporations in good standing under
     the laws of the State of Delaware. Each Seller has the power and authority
     to own its properties and to conduct its business as such properties are
     currently owned and such business is currently conducted, and had at all
     relevant times, and now has, power, authority and legal right to acquire,
     own and sell the Receivables, and in the case of the Primary Seller, the
     Asset Backed Securities and the Other Conveyed Property sold to the
     Borrower.

          (b) Due Qualification. The Primary 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 where the failure to
     do so would materially and adversely affect the Primary Seller's ability to
     sell the Receivables, the Asset Backed Securities, as applicable, and the
     Other Conveyed Property to the Borrower pursuant to this Agreement, or the
     validity or enforceability of the Receivables, the Asset Backed Securities,
     as applicable, and the Other Conveyed Property or to perform the Seller's
     obligations hereunder and under the other Basic Agreements.

          (c) Power and Authority. Each Seller has the power and authority to
              -------------------
     execute and deliver this Agreement and the other Basic Agreements to which
     it is a party and to carry out its terms and their terms, respectively;
     each Seller has full power and authority to sell and assign the
     Receivables, the Asset Backed Securities, as applicable, and the Other
     Conveyed Property to be sold and assigned to and deposited with the
     Borrower by it and has duly authorized such sale and assignment to the
     Borrower by all necessary corporate action; and the execution, delivery and
     performance of this Agreement and the other Basic Agreements to which such
     Seller is a party have been duly authorized by such Seller by all necessary
     corporate action.

          (d) Valid Sale, Binding Obligations. This Agreement effects a valid
              -------------------------------
     sale, transfer and assignment of the Receivables, the Asset Backed
     Securities, as applicable, and the Other Conveyed Property, enforceable
     against the relevant Seller and creditors of and purchasers from such
     Seller; and this Agreement and the other Basic Agreements to which each
     Seller is a party, when duly executed and delivered, shall constitute
     legal, valid and binding obligations of such Seller enforceable in
     accordance with their respective terms, except as enforceability may be
     limited by bankruptcy, insolvency, reorganization or other similar laws
     affecting the enforcement of creditors' rights generally and by equitable
     limitations on the availability of specific remedies, regardless of whether
     such enforceability is considered in a proceeding in equity or at law.

          (e) ERISA. Each Seller is in compliance in all material respects with
              -----
     ERISA and there is no lien of the Pension Benefit Guaranty Corporation on
     any of the Receivables, the Asset Backed Securities, as applicable, or
     Other Conveyed Property.

          (f) Not an Investment Company. Neither Seller is an "investment
              -------------------------
     company" within the meaning of the Investment Company Act of 1940, as
     amended, or is exempt from all provisions of such Act.

                                       40
<PAGE>

          (g) No Violation. The consummation of the transactions contemplated by
              ------------
     this Agreement and the other Basic Agreements to which a Seller is a party
     and the fulfillment of the terms of this Agreement and the other Basic
     Agreements to which a Seller is a party shall not conflict with, result in
     any breach of any of the terms and provisions of or constitute (with or
     without notice, lapse of time or both) a default under the organizational
     documents or by-laws of such Seller, or any indenture, agreement, mortgage,
     deed of trust or other instrument to which such Seller is a party or by
     which it is bound, or result in the creation or imposition of any Lien upon
     any of its properties pursuant to the terms of any such indenture,
     agreement, mortgage, deed of trust or other instrument, other than this
     Agreement, or violate any law, order, rule or regulation applicable to such
     Seller of any court or of any federal or state regulatory body,
     administrative agency or other governmental instrumentality having
     jurisdiction over such Seller or any of its properties.

          (h) No Proceedings. There are no proceedings or investigations pending
              --------------
     or, to the relevant Seller's knowledge, threatened, against such Seller,
     before any court, regulatory body, administrative agency or other tribunal
     or governmental instrumentality having jurisdiction over such Seller or its
     properties (A) asserting the invalidity of this Agreement or any of the
     other Basic Agreements, (B) seeking to prevent the consummation of any of
     the transactions contemplated by this Agreement or any of the other Basic
     Agreements, (C) seeking any determination or ruling that might materially
     and adversely affect the Receivables, the Asset Backed Securities, as
     applicable, or the performance by such Seller of its obligations under, or
     the validity or enforceability of, this Agreement or any of the other Basic
     Agreements, (D) seeking to adversely affect the federal income tax or other
     federal, state or local tax attributes of the transactions contemplated by
     the Basic Agreements, or (E) involving any Receivable.

          (i) Chief Executive Office. The chief executive office of the Primary
              ----------------------
     Seller is at 801 Cherry Street, Suite 3900, Fort Worth, Texas 76102. The
     chief executive office of the Secondary Seller is at its Corporate Trust
     Office.

          (j) No Consents. Neither Seller is required to obtain the consent of
              -----------
     any other party or any consent, license, approval or authorization, or
     registration or declaration with, any governmental authority, bureau or
     agency in connection with the execution, delivery, performance, validity or
     enforceability of this Agreement which has not already been obtained.

          Section 7.2 Existence. (a) During the term of this Agreement, the
                      ---------
     Sellers will keep in full force and effect its existence, rights and
     franchises as a corporation under the laws of the jurisdiction of its
     incorporation 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 Agreement, any
     Receivables Sale Agreements, any ABS Sale Agreement (in the case of the
     Primary Seller), the other Basic Agreements and each other instrument or
     agreement necessary or appropriate to the proper administration of this
     Agreement and the transactions contemplated hereby.

                                       41
<PAGE>

     (b) During the term of this Agreement, each Seller shall observe the
applicable legal requirements for the recognition of such Seller as a legal
entity separate and apart from its Affiliates, including as follows:

          (i)   each Seller shall maintain corporate records and books of
account separate from those of its Affiliates;

          (ii)  except as otherwise provided in this Agreement, each Seller
shall not commingle its assets and funds with those of its Affiliates;

          (iii) each Seller shall hold such appropriate meetings of its Board of
Directors as are necessary to authorize all such Seller's corporate actions
required by law to be authorized by the Board of Directors, shall keep minutes
of such meetings and of meetings of its stockholders) and observe all other
customary corporate formalities (and if such Seller or any successor Seller is
not a corporation shall observe similar procedures in accordance with its
governing documents and applicable law);

          (iv)  each Seller shall at all times hold itself out to the public
under such Seller's own name as a legal entity separate and distinct from its
Affiliates; and

          (v)   all transactions and dealings between a Seller and its
Affiliates will be conducted on an arm's length basis.

     (c) During the term of this Agreement, no Seller shall take any action that
would cause the Borrower to violate any of its covenants under the Basic
Agreements or that otherwise would be likely to have a material adverse effect
on the Borrower and/or the Secured Parties.

     Section 7.3  Liability of Sellers; Indemnities. The Sellers shall be liable
                  ---------------------------------
in accordance herewith only to the extent of the obligations specifically
undertaken by the Sellers under this Agreement.

     (a) The Sellers jointly and severally shall indemnify, defend and hold
harmless the Borrower, the Administrative Agent, the Secured Parties, the Backup
Servicer and the Servicer (if other than the Primary Seller) from and against
any taxes that may at any time be asserted against any such Person with respect
to, and as of the date of, each sale of Receivables or the Asset Backed
Securities, in the case of the Primary Seller only, to the Borrower including
any sales, gross receipts, general corporation, tangible or intangible personal
property, privilege or license taxes (but not including any taxes asserted with
respect to ownership of the Receivables or the Asset Backed Securities, in the
case of the Primary Seller only, or federal or other income taxes, including
franchise taxes measured by net income) and all costs and expenses in defending
against the same.

     (b) The Sellers jointly and severally shall indemnify, defend and hold
harmless the Borrower, the Administrative Agent, the Secured Parties, the Backup
Servicer and the Servicer (if other than the Primary Seller) from and against
any loss, liability or expense

                                       42
<PAGE>

incurred by reason of any Seller's willful malfeasance, 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.

     Indemnification under this Section shall survive the resignation or removal
of the Administrative Agent and the termination of this Agreement and shall
include all reasonable fees and expenses of counsel and other expenses of
litigation. If the Sellers shall have made any indemnity payments pursuant to
this Section and the Person to or on behalf of whom such payments are made
thereafter shall collect any of such amounts from others, such Person shall
promptly repay such amounts to the Sellers, without interest.

     Section 7.4  Merger or Consolidation of, or Assumption of the Obligations
                  ------------------------------------------------------------
of, Sellers. Any Person (a) into which any Seller may be merged or consolidated,
-----------
(b) which may result from any merger or consolidation to which a Seller shall be
a party or (c) which may succeed to the properties and assets of any Seller
substantially as a whole, which Person in any of the foregoing cases executes an
agreement of assumption to perform every obligation of such Seller under this
Agreement, shall be the successor to such Seller hereunder without the execution
or filing of any document or any further act by any of the parties to this
Agreement; provided, however, that (i) such Seller shall have received the
           --------  -------
written consent of the Borrower and the Required APA Banks prior to entering
into any such transaction, (ii) immediately after giving effect to such
transaction, no representation or warranty made pursuant to Section 4.1 shall
                                                            -----------
have been breached and (if AFS is the Servicer) no Servicer Termination Event,
and no event which, after notice or lapse of time, or both, would become a
Servicer Termination Event shall have happened and be continuing, (iii) such
Seller shall have delivered to the Administrative Agent and the Rating Agencies
an Officers' Certificate and an Opinion of Counsel each stating that such
consolidation, merger or succession and such agreement of assumption comply with
this Section and that all conditions precedent, if any, provided for in this
Agreement relating to such transaction have been complied with, (iv) the Rating
Agency Condition shall have been satisfied with respect to such transaction and
(v) such Seller shall have delivered to the Administrative Agent an Opinion of
Counsel stating that, in the opinion of such counsel, either (A) all financing
statements and continuation statements and amendments thereto relating to the
sale of the Receivables from the Sellers to the Borrower have been executed and
filed that are necessary fully to preserve and protect the interest of the
Borrower in the Receivables and reciting the details of such filings or (B) no
such action shall be necessary to preserve and protect such interest. For the
avoidance of doubt, it is understood that the execution of the foregoing
agreement of assumption and compliance with clauses (i) through (v) above shall
be conditions to the consummation of the transactions referred to in clauses
(a), (b) or (c) above.

     Section 7.5  Limitation on Liability of Sellers and Others. The Sellers and
                  ---------------------------------------------
any director or officer or employee or agent of the Sellers 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 any Basic Agreement. Neither Seller shall 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 involve it in
any expense or liability.

                                       43
<PAGE>

                                  ARTICLE VIII

                                  The Servicer
                                  ------------

     Section 8.1  Representations and Warranties of AFS, in its capacity as
                  ---------------------------------------------------------
Servicer. AFS makes the following representations and warranties on which the
--------
Borrower is deemed to have relied in acquiring the Receivables and on which the
Secured Parties have relied in advancing funds to the Borrower under the
Security and Funding Agreement. The representations speak as of the execution
and delivery of this Agreement and as of each Receivables Sale Date with respect
to the Receivables sold on such date, and shall survive the sale of the
Receivables to the Borrower and the pledge thereof to the Administrative Agent
on behalf of the Secured Parties.

          (i)   Organization and Good Standing. AFS has been duly organized and
                ------------------------------
is validly existing and in good standing under the laws of its jurisdiction of
organization, with power, authority and legal right to own its properties and to
conduct its business as such properties are currently owned and such business is
currently conducted, and had at all relevant times, and now has, power,
authority and legal right to enter into and perform its obligations under this
Agreement;

          (ii)  Due Qualification. AFS 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 (including the servicing of the Receivables as
required by this Agreement) requires or shall require such qualification;

          (iii) Power and Authority. AFS has the full power and authority to
                -------------------
hold each Receivable on behalf of the Administrative Agent and has the power and
authority to execute and deliver this Agreement and the other Basic Agreements
to which it is a party and to carry out its terms and their terms, respectively,
and the execution, delivery and performance of this Agreement and the other
Basic Agreements to which it is a party have been duly authorized by the
Servicer by all necessary corporate action;

          (iv) Binding Obligation. This Agreement and the other Basic Agreements
               ------------------
to which AFS is a party shall constitute legal, valid and binding obligations of
AFS enforceable in accordance with their respective terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization, or
other similar laws affecting the enforcement of creditors' rights generally and
by equitable limitations on the availability of specific remedies, regardless of
whether such enforceability is considered in a proceeding in equity or at law;

          (v)  ERISA. AFS is in compliance in all material respects with ERISA
               ------
and there is no lien of the Pension Benefit Guaranty Corporation on any of the
Receivables or Other Conveyed Property;

                                       44
<PAGE>

          (vi)   Not an Investment Company. AFS is not an "investment company"
                 -------------------------
     within the meaning of the Investment Company Act of 1940, as amended, or is
     exempt from all provisions of such Act;

          (vii)  No Violation. The consummation of the transactions contemplated
                 ------------
     by this Agreement and the other Basic Agreements to which AFS is a party,
     the delivery of Receivables to AFS as Servicer and the fulfillment of the
     terms of this Agreement and the other Basic Agreements to which AFS is a
     party, shall not conflict with, result in any breach of any of the terms
     and provisions of, or constitute (with or without notice or lapse of time)
     a default under, the articles of incorporation or bylaws of AFS, or any
     indenture, agreement, mortgage, deed of trust or other instrument to which
     AFS is a party or by which it is bound, or result in the creation or
     imposition of any Lien upon any of its properties pursuant to the terms of
     any such indenture, agreement, mortgage, deed of trust or other instrument,
     other than this Agreement, or violate any law, order, rule or regulation
     applicable to AFS of any court or of any federal or state regulatory body,
     administrative agency or other governmental instrumentality having
     jurisdiction over AFS or any of its properties;

          (viii) No Proceedings. There are no proceedings or investigations
                 --------------
     pending or, to the knowledge of AFS threatened, against AFS, before any
     court, regulatory body, administrative agency or other tribunal or
     governmental instrumentality having jurisdiction over AFS or its properties
     (A) asserting the invalidity of this Agreement or any of the other Basic
     Agreements, (B) seeking to prevent the consummation of any of the
     transactions contemplated by this Agreement or any of the other Basic
     Agreements, (C) seeking any determination or ruling that might materially
     and adversely affect the performance by AFS of its obligations under, or
     the validity or enforceability of, this Agreement or any of the Basic
     Agreements or (D) seeking to adversely affect the federal income tax or
     other federal, state or local tax attributes of the transactions
     contemplated by the Basic Agreements;

          (ix)   No Consents. AFS is not required to obtain the consent of any
                 -----------
     other party or any consent, license, approval or authorization, or
     registration or declaration with, any governmental authority, bureau or
     agency in connection with the execution, delivery, performance, validity or
     enforceability of this Agreement which has not already been obtained;

          (x)    Maintenance of Interest in Receivables. Upon written request of
                 --------------------------------------
     the Administrative Agent, AFS shall take such steps as requested by the
     Administrative Agent to protect or maintain any interest in any Receivable;
     and

          (xi)   Third Party Claims. AFS has not been notified by any party that
                 ------------------
     any third party claims an interest in the Receivables or is requesting AFS
     to act as a bailee with respect to the Receivables, except such interests
     as are created under the Basic Agreements.

          Section 8.2  Liability of Servicer; Indemnities.
                       ----------------------------------

          (a) The Servicer (in its capacity as such) shall be liable hereunder
     only to the extent of the obligations in this Agreement specifically
     undertaken by the Servicer and the representations made by the Servicer.

                                       45
<PAGE>

          (b) The Servicer agrees to indemnify and hold harmless the Borrower,
     the Administrative Agent, the Secured Parties, the Backup Servicer, their
     respective officers, directors, agents and employees for any and all
     claims, liabilities, obligations, losses, damages, payments, costs or
     expenses of any kind whatsoever (including the fees and expenses of
     counsel) that may be imposed on, incurred or asserted against any of such
     parties as the result of any act or omission in any way relating to

               (i)   the use, ownership or operation by the Servicer or any
          Affiliate thereof of any Financed Vehicle or

               (ii)  the maintenance and custody by the Servicer of the
          Receivable Files; provided, however, that the Servicer shall not be
                            --------  -------
          liable for any portion of any such liabilities, obligations, losses,
          damages, payments or costs or expenses as are due to the willful
          misfeasance, bad faith or gross negligence of the Secured Parties or
          the Administrative Agent.

          (c) The Servicer shall indemnify, defend and hold harmless the
     Borrower, the Administrative Agent, the Secured Parties, the Backup
     Servicer, their respective officers, directors, agents and employees from
     and against any and all costs, expenses, losses, claims, damages, and
     liabilities to the extent that such cost, expense, loss, claim, damage, or
     liability arose out of, or was imposed upon the Borrower, the
     Administrative Agent, the Backup Servicer or the Secured Parties by reason
     of the breach of this Agreement by the Servicer, the negligence,
     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.

          (d) Indemnification under this Article shall include, without
     limitation, reasonable fees and expenses of counsel and expenses of
     litigation. If the Servicer has made any indemnity payments pursuant to
     this Article and the recipient thereafter collects any of such amounts from
     others, the recipient shall promptly repay such amounts collected to the
     Servicer, without interest. The indemnification obligations of the Servicer
     set forth in this Section 8.2 shall survive the termination of this
                       -----------
     Agreement and, with respect to any Servicer, shall survive the termination
     of such Servicer with respect to any act or omission that occurs prior to
     such Servicer's termination.

          Section 8.3  Merger or Consolidation of, or Assumption of the
                       ------------------------------------------------
     obligations of the Servicer or Backup Servicer.
     ----------------------------------------------

          (a) For so long as AFS is a Seller and the Servicer, in the event of
     any conflict between this Section 8.3 and Section 7.4, this Section 8.3
                               -----------     -----------       -----------
     shall control. Any Person (A) into which the Servicer may be merged or
     consolidated, (B) which may result from any merger or consolidation to
     which the Servicer shall be a party or (C) which may succeed to the
     properties and assets of the Servicer substantially as a whole, which
     Person in any of the foregoing cases executes an agreement of assumption to
     perform every obligation of the Servicer under this Agreement, shall be the
     successor to the Servicer hereunder without the execution or filing of any
     document or any further act by any of the parties to this Agreement;
     provided, however, that the Servicer shall not merge or consolidate with
     --------  -------
     any other person, convey, transfer or lease

                                       46
<PAGE>

     substantially all its assets as an entirety to another Person, or permit
     any other Person to become the successor to the Servicer's business except
     as expressly provided in this Section 8.3.
                                   -----------

          (b) The Servicer shall be permitted to merge or consolidate with any
     other person, convey, transfer or lease substantially all its assets as an
     entirety to another Person, or permit another Person to become the
     successor to the Servicer's business; provided (i) that such Person is a
                                           --------
     direct or indirect wholly-owned subsidiary of AmeriCredit; and (ii) that,
     after giving effect to such merger, consolidation, conveyance, transfer,
     lease or succession, the successor or surviving entity shall be capable of
     fulfilling the duties of the Servicer contained in this Agreement in the
     reasonable judgment of the Administrative Agent.

          (c) Except as described in clause (b) above, the Servicer shall not
     merge or consolidate with any other person, convey, transfer or lease
     substantially all its assets as an entirety to another Person, or permit
     any other Person to become the successor to the Servicer's business unless:
     (i) the Servicer shall have received the written consent of the
     Administrative Agent (acting at the direction of the Required APA Banks)
     and the Borrower prior to entering into any such transaction, (ii)
     immediately after giving effect to such transaction, no representation or
     warranty made pursuant to Section 5.6 shall have been breached and no
                               -----------
     Servicer Termination Event, and no event which, after notice or lapse of
     time, or both, would become a Servicer Termination Event shall have
     happened and be continuing, (iii) the Servicer shall have delivered to the
     Administrative Agent and the Rating Agencies an Officer's Certificate and
     an Opinion of Counsel each stating that such consolidation, merger or
     succession and such agreement of assumption comply with this Section and
     that all conditions precedent, if any, provided for in this Agreement
     relating to such transaction have been complied with, (iv) the Rating
     Agency Condition shall have been satisfied with respect to such transaction
     and (v) the Servicer shall have delivered to the Administrative Agent an
     Opinion of Counsel stating that, in the opinion of such counsel, either (A)
     all financing statements and continuation statements and amendments thereto
     that are otherwise required hereunder to be filed by the Servicer have been
     executed and filed that are necessary fully to preserve and protect the
     interest of the Borrower and the Administrative Agent, respectively, in the
     Receivables and reciting the details of such filings or (B) no such action
     shall be necessary to preserve and protect such interest. Notwithstanding
     anything herein to the contrary, the execution of the foregoing agreement
     of assumption and compliance with clauses (i), (ii), (iii), (iv) and (v)
     above shall be conditions to the consummation of the transactions referred
     to in clauses (a) or (c) above.

          (d) Any corporation (i) into which the Backup Servicer may be merged
     or consolidated, (ii) resulting from any merger or consolidation to which
     the Backup Servicer shall be a party, (iii) which acquires by conveyance,
     transfer or lease substantially all of the assets of the Backup Servicer,
     or (iv) succeeding to the business of the Backup Servicer, in any of the
     foregoing cases shall execute an agreement of assumption to perform every
     obligation of the Backup Servicer under this Agreement and, whether or not
     such assumption agreement is executed, shall be the successor to the Backup
     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,
     anything in this Agreement to the contrary notwithstanding; provided,
                                                                 --------
     however, that nothing contained herein shall be deemed to release the
     -------
     Backup Servicer from any obligation.

                                       47
<PAGE>

     Section 8.4  Limitation on Liability of the Servicer and the Backup
                  ------------------------------------------------------
Servicer. (a) Neither the Servicer, the Backup Servicer nor any of the directors
--------
or officers or employees or agents of the Servicer or Backup Servicer shall be
under any liability to the Borrower or the Secured Parties, except as provided
in this Agreement, for any action taken or for refraining from the taking of any
action pursuant to this Agreement; provided, however, that this provision shall
                                   --------  -------
not protect the Servicer, the Backup Servicer or any such person against any
liability that would otherwise be imposed by reason of a breach of this
Agreement or willful misfeasance, bad faith or negligence in the performance of
duties; provided further that this provision shall not affect any liability to
        -------- -------
indemnify the Administrative Agent, the Secured Parties and the Borrower for
costs, taxes, expenses, claims, liabilities, losses or damages paid by the
Administrative Agent, the Secured Parties and the Borrower. The Servicer, the
Backup Servicer and any director, officer, employee or agent of the Servicer or
Backup Servicer may rely in good faith on the written 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) Notwithstanding anything herein to the contrary, the Backup
     Servicer shall not be liable for any obligation of the Servicer contained
     in this Agreement, and the Administrative Agent, the Borrower, the Sellers,
     and the Secured Parties shall look only to the Servicer to perform such
     obligations.

     Section 8.5  Delegation of Duties. The Servicer may delegate duties under
                  --------------------
this Agreement to an Affiliate of the Servicer with the prior written consent of
the Borrower, the Administrative Agent (acting at the direction of the Required
APA Banks) and the Backup Servicer. The Servicer also may at any time perform
through sub-contractors the specific duties of (i) repossession of Financed
Vehicles, (ii) tracking Financed Vehicles' insurance and (iii) pursuing the
collection of deficiency balances on certain Delinquent and Defaulted
Receivables, in each case, without the consent of the Administrative Agent or
the Borrower and may perform other specific duties through such sub-contractors
in accordance with Servicer's customary servicing policies and procedures, with
the prior consent of the Administrative Agent and the Borrower; provided,
                                                                --------
however, that no such delegation or sub-contracting duties by the Servicer shall
-------
relieve the Servicer of its responsibility with respect to such duties. Neither
AFS or any party acting as Servicer hereunder shall appoint any subservicer
hereunder without the prior written consent of the Administrative Agent (acting
at the direction of the Required APA Banks), the Borrower, and the Backup
Servicer.

     Section 8.6  Servicer and Backup Servicer Not to Resign. Subject to the
                  ------------------------------------------
provisions of Section 8.3, neither the Servicer nor the Backup Servicer shall
              -----------
resign from the obligations and duties imposed on it by this Agreement as
Servicer or Backup Servicer except upon a determination that by reason of a
change in legal requirements the performance of its duties under this Agreement
would cause it to be in violation of such legal requirements in a manner which
would have a material adverse effect on the Servicer or the Backup Servicer, as
the case may be, and the Required APA Banks and the Borrower do not elect to
waive the obligations of the Servicer or the Backup Servicer, as the case may
be, to perform the duties which render it legally unable to act or to delegate
those duties to another Person. Any such determination permitting the
resignation of the Servicer or Backup Servicer shall be evidenced by an Opinion
of Counsel to such effect delivered and acceptable to the Administrative Agent

                                       48
<PAGE>

and the Borrower. No resignation of the Servicer shall become effective until
the Backup Servicer or an entity acceptable to the Administrative Agent (at the
direction of the Required APA Banks) and the Borrower shall have assumed the
responsibilities and obligations of the Servicer. No resignation of the Backup
Servicer shall become effective until an entity acceptable to the Administrative
Agent (at the direction of the Required APA Banks) and the Borrower shall have
assumed the responsibilities and obligations of the Backup Servicer; provided,
                                                                     --------
however, that in the event a successor Backup Servicer is not appointed within
-------
60 days after the Backup Servicer has given notice of its resignation and has
provided the Opinion of Counsel required by this Section 8.6, the Backup
                                                 -----------
Servicer may petition a court for its removal.

                                   ARTICLE IX

                                     Default
                                     -------

     Section 9.1  Servicer Termination Event. For purposes of this Agreement,
                  --------------------------
each of the following shall constitute a "Servicer Termination Event":

     (a) Any failure by the Servicer to deliver to the Administrative Agent for
distribution to the Secured Parties any proceeds or payment required to be so
delivered under the terms of this Agreement that continues unremedied for a
period of two Business Days (one Business Day with respect to payment of
Repurchase Obligation Amounts or ABS Repurchase Obligation Amounts) after
written notice is received by the Servicer from the Administrative Agent or
after discovery of such failure by a Responsible Officer of the Servicer;

     (b) Failure by the Servicer (i) to deliver to the Administrative Agent the
Servicer's Determination Date Certificate in draft form three Business Days, and
in final form two Business Days, prior to the Distribution Date, which failure
continues unremedied as of the close of business on the first to occur of the
next Business Day after written notice is received by the Servicer from the
Administrative Agent or the second Business Day prior to the Distribution Date,
or (ii) to observe its covenants and agreements set forth in Section 8.3(a),
                                                             --------------
(b) or (c);
---    ---

     (c) Failure on the part of the Servicer duly to observe or perform any
other covenants or agreements of the Servicer set forth in this Agreement or any
other Basic Agreement, which failure continues unremedied for a period of 30
days after knowledge thereof by the Servicer or after the date on which written
notice of such failure shall have been given to the Servicer by the
Administrative Agent (acting at the direction of the Required APA Banks) or the
Borrower;

     (d) Any representation, warranty or statement of the Servicer made in this
Agreement or any other Basic Agreement or in any certificate, report or other
writing delivered pursuant hereto or thereto shall prove to be incorrect in any
material respect as of the time when the same shall have been made, and, within
30 days after knowledge thereof by the Servicer or after written notice thereof
shall have been given to the Servicer by the Administrative Agent or the
Borrower, the circumstances or condition in respect of which such
representation, warranty or statement was incorrect shall not have been
eliminated or otherwise cured;

                                       49
<PAGE>

     (e) The occurrence of an Insolvency Event with respect to the Servicer; or

     (f) Without duplication of any of the foregoing, a Termination Event shall
have occurred and be continuing.

     Section 9.2  Consequences of a Servicer Termination Event. If a Servicer
                  --------------------------------------------
Termination Event shall occur and be continuing, the Administrative Agent or the
Required APA Banks or the Borrower (so long as no other Termination Event shall
have then occurred and remain continuing), by notice given in writing to the
Servicer (and to the Administrative Agent if given by the Required APA Banks),
may terminate all of the rights and obligations of the Servicer under this
Agreement. On or after the receipt by the Servicer of such written notice, all
authority, power, obligations and responsibilities of the Servicer under this
Agreement automatically shall pass to, be vested in and become obligations and
responsibilities of the Backup Servicer (or such other successor Servicer
appointed by the Administrative Agent at the direction of the Required APA
Banks, or by the Borrower with the consent of the Required APA Banks); provided,
                                                                       --------
however, that the successor Servicer shall have no liability with respect to any
-------
obligation which was required to be performed by the terminated Servicer prior
to the date that the successor Servicer becomes the Servicer or any claim of a
third party based on any alleged action or inaction of the terminated Servicer.
The successor Servicer is authorized and empowered by this Agreement to execute
and deliver, on behalf of the terminated 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 sale and indorsement of the
Receivables and the Other Conveyed Property and related documents to show the
Borrower as lienholder or secured party on the related Lien Certificates, or
otherwise. The terminated Servicer agrees to cooperate with the successor
Servicer in effecting the termination of the responsibilities and rights of the
terminated 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 terminated Servicer for deposit, or have
been deposited by the terminated Servicer, in the Collection Account or
thereafter received with respect to the Receivables and the delivery to the
successor Servicer of all Receivable Files, Monthly Records and Collection
Records and a computer tape in readable form as of the most recent Business Day
containing all information necessary to enable the successor Servicer or a
successor Servicer to service the Receivables and the Other Conveyed Property.
If requested by the Administrative Agent or by the Borrower with the consent of
the Administrative Agent (acting at the direction of the Required APA Banks),
the successor Servicer shall terminate the Lockbox Agreement and direct the
Obligors to make all payments under the Receivables directly to the successor
Servicer (in which event the successor Servicer shall process such payments in
accordance with Section 4.2(e)), or to a lockbox established by the successor
                --------------
Servicer at the direction of the Administrative Agent or by the Borrower with
the consent of the Administrative Agent, at the successor Servicer's expense.
The terminated Servicer shall grant the Administrative Agent, the Borrower, the
successor Servicer and the Required APA Banks reasonable access to the
terminated Servicer's premises and to its equipment, systems and personnel, at
the terminated Servicer's expense.

     Section 9.3  Appointment of Successor. (a) On and after the time the
                  ------------------------
Servicer receives a notice of termination pursuant to Section 9.2, or upon the
                                                      -----------
resignation of the Servicer

                                       50
<PAGE>

pursuant to Section 8.6, the Backup Servicer (unless the Administrative Agent,
            -----------
at the direction of the Required APA Banks or the Borrower with the consent of
the Required APA Banks, shall have exercised its option pursuant to Section 9.3
                                                                    -----------
(b) to appoint an alternate successor Servicer) shall be the successor in all
---
respects to the Servicer in its capacity as servicer under this Agreement and
the transactions set forth or provided for in this Agreement, and shall be
subject to all the rights, responsibilities, restrictions, duties, liabilities
and termination provisions relating thereto placed on the Servicer by the terms
and provisions of this Agreement except as otherwise stated herein. The
Administrative Agent and such successor shall take such action, consistent with
this Agreement, as shall be necessary to effect any such succession. If a
successor Servicer is acting as Servicer hereunder, it shall be subject to
termination under Section 9.2 upon the occurrence of any Servicer Termination
                  -----------
Event applicable to it as Servicer.

     (b) The Administrative Agent, at the direction of the Required APA Banks,
may exercise at any time its right to appoint as successor to the Servicer a
Person other than the Person serving as Backup Servicer at the time, and shall
have no liability to AFS, the Sellers, the Person then serving as Backup
Servicer, any Secured Party or any other Person if it does so. Notwithstanding
the above, if the Backup Servicer shall be legally unable or unwilling to act as
Servicer, the Backup Servicer, the Administrative Agent, acting at the direction
of the Required APA Banks, or the Borrower with the consent of the Required APA
Banks may petition a court of competent jurisdiction to appoint any Eligible
Servicer as the successor to the Servicer. Pending appointment pursuant to the
preceding sentence, the Backup Servicer shall act as successor Servicer unless
it is legally unable to do so, in which event the outgoing Servicer shall
continue to act as Servicer until a successor has been appointed and accepted
such appointment. Subject to Section 8.6, no provision of this Agreement shall
                             -----------
be construed as relieving the Backup Servicer of its obligation to succeed as
successor Servicer upon the termination of the Servicer pursuant to Section 9.2
                                                                    -----------
or the resignation of the Servicer pursuant to Section 8.6. If upon the
                                               -----------
termination of the Servicer pursuant to Section 9.2 or the resignation of the
                                        -----------
Servicer pursuant to Section 8.6, the Administrative Agent, acting at the
                     -----------
direction of the Required APA Banks, or the Borrower with the consent of the
Required APA Banks appoints a successor Servicer other than the Backup Servicer,
the Backup Servicer shall not be relieved of its duties as Backup Servicer
hereunder.

     (c) Any successor Servicer shall be entitled to such compensation (whether
payable out of the Collection Account or otherwise, including, without
limitation, any Supplemental Servicing Fee) as the Servicer would have been
entitled to under this Agreement if the Servicer had not resigned or been
terminated hereunder. If any successor Servicer is appointed as a result of the
Backup Servicer's refusal (in breach of the terms of this Agreement) to act as
Servicer although it is legally able to do so, the Administrative Agent, the
Borrower, and such successor Servicer may agree on reasonable additional
compensation to be paid to such successor Servicer by the Backup Servicer, which
additional compensation shall be paid by such breaching Backup Servicer in its
individual capacity and solely out of its own funds. If any successor Servicer
is appointed for any reason other than the Backup Servicer's refusal to act as
Servicer although legally able to do so, the Administrative Agent, the Borrower
(so long as no Termination Event other than a Servicer Termination Event shall
have then occurred and remain continuing), and such successor Servicer may agree
on additional compensation to be paid to such successor Servicer, subject to
satisfaction of the Rating Agency Condition, which additional

                                       51
<PAGE>

compensation shall be payable as provided in the Section 6.8 hereof. In
                                                 -----------
addition, any successor Servicer shall be entitled to reasonable transition
expenses incurred in acting as successor Servicer.

     Section 9.4 Notification to Secured Parties. Upon any termination of, or
                 -------------------------------
appointment of a successor to, the Servicer, the Administrative Agent shall give
prompt written notice thereof to each Secured Party, to the Borrower, and to the
Rating Agencies.

     Section 9.5 Waiver of Past Defaults. The Required APA Banks, or the
                 -----------------------
Borrower with the consent of the Required APA Banks may waive any default by the
Servicer in the performance of its obligations hereunder and its consequences.
Upon any such waiver of a past default, such default shall cease to exist, and
any Servicer Termination Event arising therefrom shall be deemed to have been
remedied for every purpose of this Agreement; provided, however, that no such
                                              --------  -------
waiver shall extend to any subsequent or other default or impair any right
consequent thereto.

                                    ARTICLE X

                      Administrative Duties of the Servicer
                      -------------------------------------

     Section 10.1 Administrative Duties.
                  ---------------------

     (a) Duties with Respect to the Borrower.
         -----------------------------------

          (i) Notwithstanding anything in this Agreement or any of the Basic
     Agreements to the contrary, the Servicer shall be responsible for promptly
     notifying, in writing, the Borrower and the Administrative Agent in the
     event that any withholding tax is imposed on the Borrower's payments (or
     allocations of income) to any Secured Party. Any such notice shall be in
     writing and specify the amount of any withholding tax required to be
     withheld by the Administrative Agent pursuant to such provision.

          (ii) The Servicer shall perform the duties of the Servicer specified
     herein and any other duties expressly required to be performed by the
     Servicer under any other Basic Agreement.

          (iii) Notwithstanding anything to the contrary in this Agreement,
     except as expressly provided herein or in the other Basic Agreements, the
     Servicer, in its capacity hereunder, shall not be obligated to, and shall
     not, (1) take any action that the Borrower directs the Servicer not to take
     on its behalf or (2) in connection with its duties hereunder assume any
     indemnification obligation of any other Person.

     Section 10.2 Records. The Servicer shall maintain appropriate books of
                  -------
account and records relating to services performed under this Agreement, which
books of account and records shall be accessible for inspection by the Borrower
at any time during normal business hours.

                                       52
<PAGE>

     Section 10.3 Additional Information to be Furnished to the Borrower. The
                  ------------------------------------------------------
Servicer shall furnish to the Borrower from time to time such additional
information regarding the Collateral as the Borrower shall reasonably request.

                                   ARTICLE XI

                            Miscellaneous Provisions
                            ------------------------

     Section 11.1 Amendment. This Agreement may be amended from time to time by
                  ---------
the parties hereto, with the consent of the Administrative Agent (such consent
not to be unreasonably withheld), but without the consent of any of the Secured
Parties, to cure any ambiguity, to correct or supplement any provisions in this
Agreement, to comply with any changes in the Uniform Commercial Code, or to
amend any other provisions with respect to matters or questions arising under
this Agreement which shall not be inconsistent with the provisions of this
Agreement or the other Basic Agreements or the transactions contemplated hereby
or thereby; provided, however, that such action shall not, as evidenced by an
            --------  -------
Opinion of Counsel delivered to the Administrative Agent, adversely affect in
any material respect the interests of any Secured Party.

     This Agreement may also be amended from time to time by the parties hereto,
with the consent of the Administrative Agent (as directed by the Required APA
Banks) for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Agreement or of modifying in any
manner the rights of the Secured Parties; provided, however, that no such
                                          --------  -------
amendment shall (a) increase or reduce in any manner the amount of, or
accelerate or delay the timing of, collections of payments on Receivables or
distributions that shall be required to be made for the benefit of the Secured
Parties, (b) reduce the aforesaid percentage of the outstanding principal amount
of the VFN, the Holders of which are required to consent to any such amendment,
(c) amend this Section, or (d) increase the funding amount of the VFN, without
the consent of all the Secured Parties.

     Promptly after the execution of any such amendment or consent, the
Administrative Agent shall furnish written notification of the substance of such
amendment or consent to each Secured Party and the Rating Agencies.

     It shall not be necessary for the consent of Secured Parties pursuant to
this Section to approve the particular form of any proposed amendment or
consent, but it shall be sufficient if such consent shall approve the substance
thereof. The manner of obtaining such consents (and any other consents of
Secured Parties provided for in this Agreement) and of evidencing the
authorization of any action by Secured Parties shall be subject to such
reasonable requirements as the Administrative Agent may prescribe.

     Prior to the execution of any amendment to this Agreement, the
Administrative Agent 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, if applicable, the Opinion

                                       53
<PAGE>

of Counsel referred to in the first paragraph of this Section 11.1 has been
                                                      ------------
delivered. The Administrative Agent, the Borrower, and the Backup Servicer may,
but shall not be obligated to, enter into any such amendment which affects the
Borrower's, the Administrative Agent's or the Backup Servicer's, as applicable,
own rights, duties or immunities under this Agreement or otherwise.

     Section 11.2 Protection of Title. (a) The relevant 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
Borrower in the Conveyed Property and in the proceeds thereof. The relevant
Seller shall deliver (or cause to be delivered) to the Borrower and the
Administrative Agent file-stamped copies of, or filing receipts for, any
document filed as provided above, as soon as available following such filing.

     (b) Without limiting any other provision of this Agreement, neither of the
Sellers nor the Servicer shall change 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 (s)9-402 (7) of the Relevant UCC, unless it
shall have given the Administrative Agent and the Borrower at least 15 days'
prior written notice thereof and shall have promptly filed appropriate
amendments to all previously filed financing statements or continuation
statements. Promptly upon such filing, the relevant Seller or the Servicer, as
the case may be, shall deliver an Opinion of Counsel in form and substance
reasonably satisfactory to the Administrative Agent, stating either (A) all
financing statements and continuation statements have been executed and filed
that are otherwise required hereunder to be filed by the relevant Seller or the
Servicer, as applicable, that are necessary fully to preserve and protect the
interest of the Borrower 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.

     (c) Each Seller and the Servicer shall have an obligation to give the
Administrative Agent and the Borrower at least 60 days' prior written notice of
any relocation of its principal executive office if, as a result of such
relocation, the applicable provisions of the Relevant 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. 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 Borrower,
the Servicer's master

                                       54
<PAGE>

computer records (including any backup archives) that refer to a Receivable
shall indicate clearly that the Borrower owns such Receivable and that such
Receivable has been pledged by the Borrower to the Administrative Agent for the
benefit of the Secured Parties. Indication of the Borrower's ownership of a
Receivable shall be deleted from or modified on the Servicer's computer systems
when, and only when, the related Receivable shall have been paid in full or
repurchased.

     (f) If at any time either 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, such
Seller or the Servicer, as applicable, shall give to such prospective purchaser,
lender or other transferee computer tapes, records or printouts (including any
restored from backup archives) that, if they shall refer in any manner
whatsoever to any Receivable, shall indicate clearly that such Receivable has
been sold and is owned by the Borrower and has been pledged by the Borrower to
the Administrative Agent for the benefit of the Secured Parties.

     (g) Upon request, the Servicer shall furnish to the Administrative Agent,
within five Business Days, a list of all Receivables (by contract number and
name of Obligor) then held as part of the Conveyed Property, together with a
reconciliation of such list to the Schedule of Receivables and to each of the
Servicer's Determination Date Certificates furnished before such request.

     Section 11.3 Notices. All demands, notices and communications upon or to
                  -------
the Sellers, the Servicer, the Borrower, the Administrative Agent, the
Collateral Agent, the Backup Servicer, the Secured Parties or the Rating
Agencies under this Agreement shall be in writing, personally delivered, or
mailed by overnight courier, express mail or certified mail, return receipt
requested, and shall be deemed to have been duly given upon receipt by such
Person at its address specified in Annex A hereto.

     Section 11.4 Assignment. This Agreement shall inure to the benefit of and
                  ----------
be binding upon the parties hereto and their respective successors and permitted
assigns. Notwithstanding anything to the contrary contained herein, except as
provided in Sections 7.4 and 8.3 and as provided in the provisions of this
            ------------     ---
Agreement concerning the resignation of the Servicer, this Agreement may not be
assigned by either Seller or the Servicer without the prior written consent of
the Administrative Agent (acting at the direction of the Required APA Banks),
the Borrower, and the Backup Servicer.

     Section 11.5 Limitations on Rights of Others. The provisions of this
                  -------------------------------
Agreement are solely for the benefit of the parties hereto and their respective
successors and permitted assigns. Except as expressly stated otherwise herein,
any right of the Administrative Agent to direct, appoint, consent to, approve
of, or take any action under this Agreement, shall be a right exercised by the
Administrative Agent in its sole and absolute discretion. The Administrative
Agent may disclaim any of its rights and powers under this Agreement. 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 Property or
under or in respect of this Agreement or any covenants, conditions or provisions
contained herein.

                                       55
<PAGE>

     Section 11.6 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 11.7 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 11.8 Headings. The headings of the various Articles and Sections
                  --------
herein are for convenience of reference only and shall not define or limit any
of the terms or provisions hereof.

     Section 11.9 Assignment to Administrative Agent. Each of the Sellers hereby
                  ----------------------------------
acknowledges and consents to any mortgage, pledge, assignment and grant of a
security interest by the Borrower to the Administrative Agent for the benefit of
the Secured Parties of or in all right, title and interest of the Borrower in,
to and under the Receivables and Other Conveyed Property, and/or the assignment
of any or all of the Borrower's rights and obligations hereunder to the
Administrative Agent. All rights of the Borrower hereunder may be exercised by
the Administrative Agent for the benefit of the Secured Parties or their
assignees to the extent of their respective rights pursuant to such assignments.
Any assignee (including, but not limited to, any Secured Party) is hereby
intended by the parties hereto to be a third-party beneficiary of this
Agreement.

     Section 11.10 Bank One Roles; Limitation of Liability. The parties
                   ---------------------------------------
expressly acknowledge and consent to Bank One Chicago acting in the capacities
of Administrative Agent, and APA Bank, and Bank One Columbus acting in the
capacities of Backup Servicer, Collateral Agent and Securities Intermediary.
Each of Bank One Chicago and Bank One Columbus may, in any such or other
capacities, discharge its separate functions fully, without hindrance or regard
to conflict of interest principles, duty of loyalty principles or other breach
of fiduciary duties to the extent that any such conflict or breach arises from
the performance by Bank One Chicago or Bank One Columbus of express duties set
forth in this Agreement or in any other Basic Agreement in any of such
capacities, all of which defenses, claims or assertions are hereby expressly
waived by the other parties hereto and the Secured Parties except in the case of
gross negligence and willful misconduct by Bank One Chicago or Bank One
Columbus, respectively. Without limiting any other provision hereof, the parties
further expressly acknowledge and agree that in no event shall Bank One Chicago
or Bank One Columbus be liable under or in connection with this Agreement or any
other Basic Agreement for indirect, special or consequential losses or damages
of any kind, including lost profits, even if advised of the possibility thereof
and regardless of the form of action by which such losses or damages may be
claimed.

     Section 11.11 Non-petition Covenants. (a) Notwithstanding any prior
                   ----------------------
termination of this Agreement, the Servicer, the Sellers, the Administrative
Agent and each Secured Party shall not, prior to the date which is one year and
one day after the later of (i)

                                       56
<PAGE>

termination of this Agreement with respect to the Borrower and (ii) the payment
in full of all obligation due and owing by the Borrower to the Administrative
Agent and the Secured Parties under the Basic Agreements, acquiesce, petition or
otherwise invoke or cause the Borrower to invoke the process of any court or
government authority for the purpose of commencing or sustaining a case by or
against the Borrower 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 Borrower or any substantial part
of its property, or ordering the winding up or liquidation of the affairs of the
Borrower.

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

     (c) Notwithstanding anything contained herein to the contrary, this
Agreement has been executed and delivered by Bank One Chicago, not in its
individual capacity but solely in its capacity as Administrative Agent, and by
Bank One Columbus, not in its individual capacity but solely in its capacities
as Backup Servicer and Collateral Agent, and in no event shall Bank One Chicago
or Bank One Columbus have any liability for the representations, warranties,
covenants, agreements or other obligations of the Borrower hereunder or in any
of the certificates, notices or agreements delivered pursuant hereto, as to all
of which recourse shall be had solely to the assets of the Borrower.

     Section 11.12 Independence of the Servicer. For all purposes of this
                   ----------------------------
Agreement, the Servicer shall be an independent contractor and shall not be
subject to the supervision of the Borrower, the Administrative Agent or the
Backup Servicer with respect to the manner in which it accomplishes the
performance of its obligations hereunder. Unless expressly authorized by this
Agreement, the Servicer shall have no authority to act for or represent the
Borrower in any way and shall not otherwise be deemed an agent of the Borrower.

     Section 11.13 No Joint Venture. Nothing contained in this Agreement (i)
                   ----------------
shall constitute the Servicer or the Borrower as members of any partnership,
joint venture, association, syndicate, unincorporated business or other separate
entity, (ii) shall be construed to impose any liability as such on any of them
or (iii) shall be deemed to confer on any of them and express, implied or
apparent authority to incur any obligation or liability on behalf of the others.

     Section 11.14 Consents to Jurisdiction. Each of the parties hereto
                   ------------------------
irrevocably submits to the jurisdiction of the United States District Court for
the Southern District of New York, any court in the State of New York located in
New York, NY, and any appellate court from any thereof, in any action, suit or
proceeding brought against it and related to or in connection with this
Agreement, the other Basic Agreements or the transactions contemplated hereunder
or thereunder or for recognition or enforcement of any judgment and each of the

                                       57
<PAGE>

parties hereto irrevocably and unconditionally agrees that all claims in respect
of any such suit or action or proceeding may be heard or determined in such New
York State court or, to the extent permitted by law, in such federal court. Each
of the parties hereto agrees that a final judgment in any such action, suit or
proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law. To the extent
permitted by applicable law, each of the parties hereby waives and agrees not to
assert by way of motion, as a defense or otherwise in any such suit, action or
proceeding, any claim that it is not personally subject to the jurisdiction of
such courts, that the suit, action or proceeding is brought in an inconvenient
forum, that the venue of the suit, action or proceeding is improper or that this
Agreement or any of the other Basic Agreements or the subject matter hereof or
thereof may not be litigated in or by such courts. The Borrower hereby
irrevocably appoints and designates The Prentice-Hall Corporation System, 500
Central Avenue, Albany, New York 12206-2290 as its true and lawful attorney and
duly authorized agent for acceptance of service of legal process. The Borrower
agrees that service of such process upon such Person shall constitute personal
service of such process upon it. Nothing contained in this Agreement shall limit
or affect the rights of any party hereto to serve process in any other manner
permitted by law or to start legal proceedings relating to any of the Basic
Agreements against the Sellers, the Servicer, the Borrower or their respective
property in the courts of any jurisdiction.

     Section 11.15 Trial by Jury Waived. Each of the parties hereto waives, to
                   --------------------
the fullest extent permitted by law, any right it may have to a trial by jury in
respect of any litigation arising directly or indirectly out of, under or in
connection with this Agreement, any of the other Basic Agreements or any of the
transactions contemplated hereunder or thereunder. Each of the parties hereto
(a) certifies that no representative, agent or attorney of any other party has
represented, expressly or otherwise, that such other party would not, in the
event of litigation, seek to enforce the foregoing waiver and (b) acknowledges
that it has been induced to enter into this Agreement and the other Basic
Agreements to which it is a party, by among other things, this waiver.

     Section 11.16 Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN
                   -------------
ACCORDANCE WITH THE LAWS 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 11.17 No Recourse. It is expressly understood and agreed by the
                   -----------
parties hereto that (a) this Agreement is executed and delivered by Bankers
Trust (Delaware), not individually or personally but solely as trustee of the
Borrower, in the exercise of the powers and authority conferred and vested in
it, (b) each of the representations, undertakings and agreements herein made on
the part of the Borrower is made and intended not as personal representations,
undertakings and agreements by Bankers Trust (Delaware) but is made and intended
for the purpose of binding only the Borrower, (c) nothing herein contained shall
be construed as creating any liability on Bankers Trust (Delaware), individually
or personally, to perform any covenant either expressed or implied contained
herein, all such liability, if any, being expressly waived by the parties hereto
and by any Person claiming by, through or under the parties hereto and (d) under
no circumstances shall Bankers Trust (Delaware) be personally liable for the
payment of any indebtedness or expenses of the Borrower or be liable for the
breach or failure of any

                                       58
<PAGE>

obligation, representation, warranty or covenant made or undertaken by the
Borrower under this Agreement or any other related documents.

     Section 11.18 Confidentiality.
                   ---------------

          (a) The Servicer and each Seller shall maintain and shall cause each
of its employees and officers to maintain the confidentiality of this Agreement
and the other confidential or proprietary information with respect to the
Administrative Agent, the Securities Intermediary and each of the other Secured
Parties and their respective businesses obtained by it or them in connection
with the structuring, negotiating and execution of the transactions contemplated
herein, except that any Seller and its officers and employees may disclose such
information to such Seller's external accountants and attorneys and as required
by any applicable law (including the Securities Act of 1933 and the Securities
Exchange Act of 1934) or order of any judicial or administrative proceeding.

          (b) Anything herein to the contrary notwithstanding, the Servicer and
each Seller each hereby consents to the disclosure of any nonpublic information
with respect to it (i) to the Administrative Agent, the Securities Intermediary
or any of the other Secured Parties by each other, (ii) by the Administrative
Agent, the Securities Intermediary or any of the other Secured Parties to any
prospective or actual assignee or participant of any of them and (iii) by the
Administrative Agent to any rating agency, Commercial Paper dealer or provider
of a surety, guaranty or credit or liquidity enhancement to the CP Lender or any
entity organized for the purpose of purchasing, or making loans secured by,
financial assets for which Bank One Chicago acts as the administrative agent and
to any officers, directors, employees, outside accountants and attorneys of any
of the foregoing. In addition, the Administrative Agent, the Securities
Intermediary and the other Secured Parties may disclose any such nonpublic
information pursuant to any law, rule, regulation, direction, request or order
of any judicial, administrative or regulatory authority or proceedings (whether
or not having the force or effect of law).

          (c) Borrower shall maintain and shall cause each of its employees and
officers to maintain the confidentiality of this Agreement and the other
confidential or proprietary information with respect to the Servicer, each
Seller and the Obligors and their respective businesses obtained by it in
connection with the due diligence evaluations, structuring, negotiating and
execution of the Basic Documents, and the consummation of the transactions
contemplated herein and any other activities of Borrower arising from or related
to the transactions contemplated herein provided, however, that each of Borrower
                                        --------  -------
and its employees and officers shall be permitted to disclose such confidential
or proprietary information: (i) to the Administrative Agent, the Securities
Intermediary and any of the other Secured Parties, (ii) to any prospective or
actual assignee or participant of the Administrative Agent, the Securities
Intermediary or any of the other Secured Parties who execute a confidentiality
agreement for the benefit of the Servicer, the Seller and the Borrower on terms
comparable to those required of Borrower hereunder with respect to such
disclosed information, (iii) to any rating agency, provider of a surety,
guaranty or credit or liquidity enhancement to the CP Lender, (iv) to any
officers, directors, employees, outside accountants and attorneys of any of the
foregoing, and (v) to the extent required pursuant to any applicable law, rule,
regulation, direction, request or order of any judicial, administrative or
regulatory authority or proceedings with competent jurisdiction

                                       59
<PAGE>

     (whether or not having the force or effect of law) so long as such required
     disclosure is made under seal to the extent permitted by applicable law or
     by rule of court or other applicable body.

                                       60
<PAGE>

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

                              AMERICREDIT ONE TRUST,
                              Borrower

                              By: Bankers Trust (Delaware), solely in its
                                   capacity as Trustee of AmeriCredit One Trust

                              By
                                -------------------------------------------
                                Name:
                                Title:

                              AMERICREDIT FUNDING CORP. VI,    Seller

                              By
                                -------------------------------------------
                                Name:
                                Title:

                              AMERICREDIT FINANCIAL SERVICES, INC.,
                              Servicer and Primary Seller

                              By
                                -------------------------------------------
                                Name:  Preston A. Miller
                                Title:  Executive Vice President
                                          and Treasurer

                              By
                                -------------------------------------------
                                Name:  Preston A. Miller
                                Title:  Executive Vice President
                                               and Treasurer

                                       61
<PAGE>

                              BANK ONE, NA (MAIN OFFICE COLUMBUS),
                              not in its individual capacity but solely as
                              Backup Servicer and Collateral Agent

                              By
                                -------------------------------------------
                                Name:  John J. Rothrock
                                Title:  Authorized Signer

                              BANK ONE, NA (MAIN OFFICE CHICAGO), as
                              Administrative Agent on behalf of the Secured
                              Parties

                              By
                                -------------------------------------------
                                Name:  Fouad S. Onbargi
                                Title:  Authorized Signatory

                                       62
<PAGE>

                                   SCHEDULE A

                      THIS SCHEDULE INTENTIONALLY OMITTED

                                       63
<PAGE>

                                   SCHEDULE B

                 REPRESENTATIONS AND WARRANTIES OF THE SELLERS
                             RELATING TO RECEIVABLES

     (a) General Characteristics.
         -----------------------

          Each Receivable:

          (i) has been originated in the United States by the Primary Seller
          directly or by a Dealer or Third-Party Lender for the retail sale or
          refinancing of a Financed Vehicle in the ordinary course of its
          business and the Primary Seller or Dealer or Third-Party Lender (as
          the case may be) has all necessary licenses and permits to originate
          Receivables in the state where either such Dealer or Third-Party
          Lender or the related consumer is located, has been fully and properly
          executed by the parties thereto, and, if originated by a Dealer or
          Third-Party Lender, has been purchased from such Dealer or Third-Party
          Lender by the Primary Seller under an existing Dealer Agreement or
          Third Party Loan Purchase Agreements, as the case may be, or validly
          assigned by such Dealer or Third-Party Lender to the Primary Seller
          or, with respect to any Receivable sold to the Borrower by the Seller,
          was purchased by the Seller (and, if originated by the Primary Seller,
          is an eligible Receivable under any term securitization documents of
          the Primary Seller at the time of purchase by the Borrower);

          (ii) has created a valid, subsisting and enforceable first priority
          perfected security interest in favor of the Primary Seller in the
          related Financed Vehicle (which security interest has been validly
          assigned to the Borrower (or the Secondary Seller and by the Secondary
          Seller to the Borrower in cases of sales by the Primary Seller to the
          Secondary Seller) and has been validly assigned by the Borrower to the
          Administrative Agent on behalf of the Secured Parties), except as
          enforceability may be limited by bankruptcy, insolvency,
          reorganization or similar laws affecting the enforcement of creditors'
          rights generally;

          (iii) contains customary and enforceable provisions (except as
          enforceability may be limited by bankruptcy, insolvency,
          reorganization or similar laws affecting the enforcement of creditors'
          rights generally) such that the rights and remedies of the holder
          thereof shall be 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 the original contractual term and yield interest at the
          annual percentage rate;

          (v) provides for, in the event that the related Contract is prepaid, a
          prepayment that fully pays the principal balance and includes accrued
          but unpaid interest through the date of prepayment in an amount at
          least equal to the annual percentage rate; and

                                       64
<PAGE>

          (vi) has not been amended, or rewritten or collections with respect
          thereto deferred or waived except in accordance with the Credit and
          Servicing Procedures.

          (b) Compliance with Law. Each Receivable and the sale or refinancing
              -------------------
          of the related Financed Vehicle complied at the time it was originated
          or made, and at the date such Receivable is sold by the Seller to the
          Borrower, complies, in all material respects, with all requirements of
          applicable Federal, state and local laws and regulations thereunder,
          including, without limitation, usury laws, the Federal
          Truth-in-Lending Act, the Equal Credit Opportunity Act, the Federal
          Trade Commission Act, the Fair Credit Billing Act, the Fair Credit
          Reporting Act, the Fair Debt Collection Practices Act, the Magnuson-
          Moss Warranty Act, the Federal Reserve Board's Regulations B and Z,
          the Federal Trade Commission Credit Practices Rule, state unfair and
          deceptive trade practice laws, and state adaptations of the National
          Consumer Act and of the Uniform Consumer Credit Code, and any other
          applicable consumer credit, equal credit opportunity and disclosure
          laws.

          (c) No Fraud. Each Receivable was originated by (i) a Dealer or
              --------
          Third-Party Lender and was sold by the Dealer or Third-Party Lender to
          the Seller without any fraud or misrepresentation by the dealer or
          (ii) the Seller in connection with a refinancing or direct loan.

          (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 (except
          as enforceability may be limited by bankruptcy, insolvency,
          reorganization or similar laws affecting the enforcement of creditors'
          rights generally) and all parties to each Receivable had full legal
          capacity to execute and deliver such Receivable and all other
          documents related thereto and to grant the security interest purported
          to be granted thereby.

          (e) No Government Obligor. No Receivable is due from the United States
              ---------------------
          of America or any state or local government or from any agency,
          department or instrumentality of the United States of America, any
          state or local government.

          (f) No Obligor Bankruptcy. At the Relevant Cutoff Date no Obligor had
              ---------------------
          been identified on the records of the Seller as being the subject of a
          current bankruptcy proceeding.

          (g) Schedule of Receivables. The information set forth in the
              ----------------------
          Schedule of Receivables has been produced from the Seller's electronic
          ledger and was true and correct in all material respects on the
          Relevant Cutoff Date, and is a complete and accurate description, on
          the relevant Receivables Sale Date, of the Receivables sold to the
          Borrower on such date; and on or prior to the relevant Receivables
          Sale Date, the Seller has appropriately marked its computer records to
          indicate the sale to the Borrower of the Receivables sold on such
          date.

                                      B-2
<PAGE>

          (h) Certain Characteristics of Receivables.
              --------------------------------------

          Each Receivable:

          (i)   has a remaining maturity, as of the Relevant Cutoff Date, of not
                more than 72 months;

          (ii)  each Receivable has an original maturity of not more than 72
                months;

          (iii) each Receivable has a remaining Principal Balance as of the
                Relevant Cutoff Date of not more than $60,000;

          (iv)  no Receivable is more than 30 days past due as of the Relevant
                Cutoff Date; and

          (v)   no funds have been advanced by the Seller, any Dealer, or anyone
                acting on behalf of any of them in order to cause any Receivable
                to qualify under clause (iv) above.

          (i) Receivables in Force. No Receivable has been satisfied,
              --------------------
          subordinated or rescinded, nor shall any Financed Vehicle have been
          released from the security interests granted by the related Contract
          in whole or in part.

          (j) No Waiver. No provision of any Receivable has been waived, except
              ---------
          in accordance with the Credit and Servicing Procedures.

          (k) No Defenses. Except for the security interests in favor of the
              -----------
          Sellers, the Borrower and the Collateral Agent, the Receivables are
          free and clear of all security interests, liens, charges, and
          encumbrances and to the best knowledge of the relevant Seller no right
          of rescission, setoff, counterclaim or defense has been asserted or
          threatened with respect to any Receivable.

          (l) No Liens. No liens or claims have been filed for work, labor or
              --------
          materials relating to a Financed Vehicle that are liens prior to or
          equal or coordinate with, the security interest in the Financed
          Vehicle granted by the Receivable.

          (m) No Default. No default, breach, violation or event permitting
              ----------
          acceleration under the terms of any Receivable has occurred, and
          neither the Seller nor the Servicer has waived any of the foregoing,
          except in accordance with the Credit and Servicing Procedures.

          (n) Insurance. The Obligor under each Receivable has obtained physical
              ---------
          damage and theft insurance covering the Financed Vehicle, and is
          required under the terms of the Receivable to maintain such insurance.

          (o) Title. (i) Immediately prior to the sale of the subject
              -----
          Receivables, the Seller had, and has conveyed to the Borrower, good
          and marketable title to each Receivable free and clear of all liens,
          encumbrances, security interests and rights of others, and (ii) the
          sale

                                      B-3
<PAGE>

          and assignment of the Receivables to the Borrower has been perfected
          under the Relevant UCC.

          (p) Receivable Files Complete. There exists a Receivable File
              -------------------------
          pertaining to each Receivable and such Receivable File contains (1)
          where applicable, a fully executed original of the Contract, (2) the
          original executed credit application (or, if no such credit
          application has been completed, other evidence of application being
          made or credit evaluation being conducted), or a copy thereof,
          together with all applicable amendments and addenda and (3) the
          original Lien Certificate or application therefor or, for any Contract
          secured by a Financed Vehicle registered in any state for which the
          Paperless Title System is used to evidence title to and any lien in
          the Financed Vehicle, a computer printout or similar documentary
          evidence that there is an electronic record in the Paperless Title
          System indicating that the Financed Vehicle is owned by the Obligor
          and subject to the interest of the Seller as first lienholder or
          secured party (when such electronic record becomes available through
          the Paperless Title System). Each of such documents which is required
          to be signed by the Obligor has been signed by the Obligor in the
          appropriate spaces. All blanks on any form have been properly filled
          in and each form has otherwise been correctly prepared. The complete
          Receivable File for each Receivable currently is in the possession of
          the Servicer, as Custodian.

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

          (r) All Filings Made. All filings (including, without limitation, UCC
              ----------------
          filings) necessary in any jurisdiction to give the Borrower a first
          priority perfected security interest in the Receivables have been
          made.

          (s) One Original. There is in existence one, and only one, original
              ------------
          executed copy of each Receivable.

          (t) Lockbox. The Obligor of each Receivable is required to make
              -------
          payments to a lockbox that is subject to a Lockbox Agreement.

          (u) UCC Characterization. The contract evidencing such Receivable
              --------------------
          constitutes "chattel paper" under the Relevant UCC.

          (v) No Adverse Selection. No selection procedures adverse to the
              --------------------
          Secured Parties or the Borrower were used in selecting the Receivables
          from the receivables owned by the Seller and/or otherwise constituting
          Managed Assets, that met the selection criteria contained in the Sale
          and Servicing Agreement and set forth above in this Schedule B.

          (w) Eligible Receivable. At the time a Receivable was sold to the
              -------------------
          Borrower, such Receivable was "eligible" as such term is defined in
          any asset-backed transaction of AFS.

                                      B-4
<PAGE>

                                   SCHEDULE C

              REPRESENTATIONS AND WARRANTIES OF THE PRIMARY SELLER
                       RELATING TO ASSET BACKED SECURITIES

(a)  General Characteristics.
     -----------------------

Each Asset Backed Security:

(i) is an Eligible Security; and

(ii) contains customary and enforceable provisions (except as enforceability may
be limited by bankruptcy, insolvency, reorganization or similar laws affecting
the enforcement of creditors' rights generally) such that the rights and
remedies of the holder thereof shall be adequate for realization against the
collateral of the benefits of the security.

(b) Binding Obligation. Each Asset Backed Security represents the genuine,
    ------------------
legal, valid and binding payment obligation in writing of the issuer,
enforceable by the holder thereof in accordance with its terms (except as
enforceability may be limited by bankruptcy, insolvency, reorganization or
similar laws affecting the enforcement of creditors' rights generally).

(c) No Obligor Bankruptcy. On the relevant ABS Sale Date, the issuer thereof was
    ---------------------
not the subject of a current bankruptcy proceeding.

(d) One Original. In the case of an Asset Backed Security in certificated form,
    ------------
there is only one, original executed copy of such Asset Backed Security.
<PAGE>

                                                                 Schedule 3.1 to
                                                    Sale and Servicing Agreement
                                                    ----------------------------

                              CONDITIONS PRECEDENT

          In addition to the receipt of documents and satisfaction of other
     conditions set forth in Section 3.1 of the Sale and Servicing Agreement,
     the following shall have been delivered, and shall be satisfactory in form
     and substance, to the Administrative Agent and the Borrower:

     1.   Certified copy of the Credit and Servicing Procedures.

     2.   A Certified Certificate of Trust

     3.   A Borrower Good Standing Certificate.

     4.   Each of the Sellers' and Servicer's Certificate, including as
          attachments thereto:

          a.   Resolutions of the Board of Directors duly authorizing the
               execution, delivery and performance by the Primary Seller, the
               Secondary Seller or the Servicer, as appropriate, of each of the
               Basic Agreements to which it is a party and any other documents
               executed by or on behalf of the Primary Seller, the Secondary
               Seller or the Servicer, as appropriate, in connection with the
               transactions contemplated thereby;

          b.   Certified Certificate of Incorporation; and

          c.   By-laws.

     5.   An Incumbency Certificate of the Primary Seller and the Secondary
          Seller setting forth the names, titles and signatures of their
          respective officers who are authorized to execute documents, give
          instructions and otherwise take actions on their behalf in connection
          with the contemplated transactions, in its roles as a Seller or the
          Servicer, as appropriate.

     6.   A Good Standing Certificate of each of the Sellers and the Servicer.

     7.   An Opinion of special counsel to each of the Sellers as to true sale
          and nonconsolidation matters.

     8.   An Opinion of special counsel to each of the Sellers with respect to
          the validity and enforceability of certain transaction documents.

     9.   Opinion of local counsel to the Borrower, as to the formation of and
          other corporate matters relating to the Borrower, as to the
          enforceability of certain
<PAGE>

          transaction documents and as to the enforceability, perfection and
          priority of the security interests in the Collateral.

     10.  The Opinion of Chris A. Choate, General Counsel to AmeriCredit, AFS,
          and AmeriCredit Funding Corp. VI, with respect to corporate matters
          for each of the Sellers, the Servicer and the Borrower.

     11.  Acknowledgment copy of the financing statements naming the Primary
          Seller and the Secondary Seller, as debtors, the Borrower, as secured
          party, and the Administrative Agent, as assignee, filed with the
          Office of the Secretary of State of the State of Texas and the Office
          of the Secretary of State of the State of Delaware, in the case of the
          Primary Seller, and in the Office of the Secretary of State in the
          State of Delaware in the case of the Secondary Seller.

     12.  Acknowledgment copy of the financing statement naming the Borrower, as
          debtor, and the Administrative Agent, as secured party, filed with the
          Secretary of State of the State of Delaware.

                                     3.1-2
<PAGE>

                                                                  Exhibit A-1 to
                                                    Sale and Servicing Agreement
                                                    ----------------------------

                           RECEIVABLES SALE AGREEMENT

     Receivables Sale Agreement (this "Agreement"), dated _________, 2001, among
AMERICREDIT FUNDING CORP. VI, a Delaware corporation ("AFC"), AMERICREDIT
                                                       ---
FINANCIAL SERVICES, INC., a Delaware corporation ("AFS" and together with AFC,
                                                   ---
the "Sellers") and AMERICREDIT ONE TRUST, a Delaware business trust (the
     -------
"Purchaser").
 ---------
                                  WITNESSETH:

     WHEREAS, pursuant to the Sale Agreement (the form of which is attached
hereto as Addendum A), AFS wishes to sell/and or contribute Receivables to AFC;

     WHEREAS, the Sellers wish to sell/and or contribute Receivables to the
Purchaser; and

     WHEREAS, the Purchaser is willing to purchase or acquire as a contribution
such Receivables subject to the terms and conditions hereof.

     NOW, THEREFORE, the Purchaser and the Sellers hereby agree as follows:

     1. Defined Terms. Capitalized terms used herein shall have the meanings
        -------------
ascribed to them in Annex A to the Sale and Servicing Agreement, dated as of May
31, 2001 (the "Sale and Servicing Agreement"), unless otherwise defined herein.
               ----------------------------
     "Relevant Cutoff Date" shall mean, with respect to the Receivables sold
      --------------------
and/or contributed hereby, _____________ __, 200_.

     "Receivables Sale Date" shall mean, with respect to the Receivables
      ---------------------
assigned hereby, the date hereof.

     2. Schedule of Receivables. Annexed hereto are Schedule A-1 and Schedule
        -----------------------
A-2 from AFS and AFC, respectively, listing the Receivables sold and/or
contributed by it pursuant to this Agreement on the Receivables Sale Date. The
term "Receivables" as used in this Agreement means and includes each and every
chattel paper and other form of receivable relating to the sale or financing
provided for new or used automobile and light-duty trucks, vans or minivans
transferred by Sellers to Purchaser pursuant to this Agreement and identified on
the Schedule A-1 and Schedule A-2 provided by AFS and AFC, respectively,
attached hereto, together with all payment obligations hereunder and all
proceeds thereof. It is intended that Sellers will transfer to Purchaser
hereafter from time to time additional Receivables, whether now existing or
hereafter arising and wherever located.
<PAGE>

     3. Sale and/or Contribution of Receivables. (a) Each Seller, does hereby
        ---------------------------------------
sell and/or contribute, transfer, assign, set over and otherwise convey to the
Purchaser (the "Assignment"), without recourse (except as expressly provided in
                ----------
the Sale and Servicing Agreement), all right, title and interest of such Seller
in and to:

          (i)    the Receivables listed in Schedule A-1 (in the case of AFS) and
     Schedule A-2 (in the case of AFC) and all moneys received thereon, on and
     after the Relevant Cutoff Date;

          (ii)   all security interests in the Financed Vehicles granted by
     Obligors pursuant to the Receivables and any other interest of the Seller
     in such Financed Vehicles;

          (iii)  all proceeds and all rights to receive proceeds with respect to
     the Receivables from claims on any physical damage, credit life or
     disability insurance policies covering Financed Vehicles or Obligors;

          (iv)   all rights of the Seller against Dealers pursuant to Dealer
     Agreements and/or Dealer Assignments;

          (v)    all rights of the relevant Seller against Third-Party Lenders
     pursuant to Third-Party Loan Purchase Agreements and/or Third-Party Lender
     Assignments.

          (vi)   all rights under any Service Contracts on the related Financed
     Vehicles;

          (vii)  the related Receivable files; and

          (viii) all proceeds of any and all of the foregoing.

          (b) The Assignment is in consideration of the Purchaser's delivery to
     or upon the order of Sellers as set forth below:

              (i)$___________ to AFS;  and

              (ii)$___________ to AFC.

          4. Representations and Warranties of the Sellers.
             ---------------------------------------------

          (a) Representations and Warranties of AFS. AFS hereby represents and
              -------------------------------------
     warrant to the Purchaser as of the Receivables Sale Date that:

               (i) Sale and Servicing Agreement. The representations and
                   ----------------------------
          warranties set forth herein and in the Sale and Servicing Agreement
          are true and correct and with respect to any representation which
          relates to the property sold and/or contributed pursuant to Section 3
                                                                      ---------
          hereof.

                                      A-2
<PAGE>

         (ii)  Principal Balance.  As of the Relevant Cutoff Date, the
               -----------------
          aggregate Outstanding Principal Balance of the Receivables listed on
          the Schedule of Receivables provided by AFS (annexed hereto as
          Schedule A-1) and sold to the Purchaser pursuant to this Agreement is
          $__________________.

          (b) Representations and Warranties of AFC. AFC hereby represents and
              -------------------------------------
     warrant to the Purchaser as of the Receivables Sale Date that:

               (i)  Sale and Servicing Agreement. The representations and
                    ----------------------------
          warranties set forth herein and in the Sale and Servicing Agreement
          are true and correct and with respect to any representation which
          relates to the property sold and/or contributed pursuant to Section 3
                                                                      ---------
          hereof.

               (ii) Principal Balance. As of the Relevant Cutoff Date, the
                    -----------------
          aggregate Outstanding Principal Balance of the Receivables listed on
          the Schedule of Receivables provided by AFC (annexed hereto as
          Schedule A-2) and sold to the Purchaser pursuant to this Agreement is
          $__________________.

          5. Conditions Precedent. The obligation of the Purchaser to acquire
             --------------------
the Receivables hereunder is subject to the satisfaction, on or prior to the
Receivables Sale Date, of the following conditions precedent:

          (a) Representations and Warranties. Each of the representations and
              ------------------------------
     warranties made by the Sellers in Section 4 of this Agreement and in
                                       ---------
     Sections 4.1 and 7.1 of the Sale and Servicing Agreement shall be true and
     correct with respect to the property sold and/or contributed pursuant to
     Section 3 hereof as of the Receivables Sale Date.
     ---------

          (b) Sale and Servicing Agreement Conditions. Each of the conditions
              ---------------------------------------
     set forth in Section 3.2 of the Sale and Servicing Agreement shall have
     been satisfied with respect to the property sold pursuant to Section 3
                                                                  ---------
     hereof.

          (c) Additional Information. The Sellers shall have delivered to the
              ----------------------
     Purchaser such information as was reasonably requested by the Purchaser to
     satisfy itself as to the satisfaction of the conditions set forth in this
     Section 5.
     ---------

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

          7. Counterparts. This Agreement may be executed in two or more
             ------------
counterparts (and by different parties in separate counterparts), each of which
shall be an original but all of which together shall constitute one and the same
instrument.

                                      A-3
<PAGE>

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

                                      A-4
<PAGE>

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

                          AMERICREDIT ONE TRUST,
                              as Purchaser

                          By:   AMERICREDIT FINANCIAL SERVICES, INC., attorney-
                                in-fact

                          By
                            ----------------------------------------------------
                              Name:
                              Title:

                          AMERICREDIT FINANCIAL SERVICES, INC.,
                              as Seller

                          By
                            ----------------------------------------------------
                              Name:
                              Title:

                          AMERICREDIT FUNDING CORP. VI,
                              as Seller

                          By
                            ----------------------------------------------------
                              Name:
                              Title:

Acknowledged:
BANK ONE, NA (MAIN OFFICE COLUMBUS),
     solely in its capacity as Collateral Agent

By
   -------------------------
     Name:
     Title:

                                      A-5
<PAGE>

                                                                  Exhibit A-2 to
                                                    Sale and Servicing Agreement
                                                    ----------------------------

                         ASSET BACKED SECURITIES SALE AGREEMENT

SALE No. [____] of Receivables made this ___ day of ____________, ______,
between AMERICREDIT FINANCIAL SERVICES, INC. (the "Seller"), and AMERICREDIT ONE
TRUST, a Delaware business trust (the "Purchaser"), pursuant to the Sale and
Servicing Agreement, dated as of May 31, 2001 (the "Sale and Servicing
Agreement"), among the Purchaser, AmeriCredit Financial Services, Inc., as
Servicer and Primary Seller, AmeriCredit Funding Corp. VI, as a Seller, and Bank
One, NA (Main Office Columbus), as Backup Servicer, and Bank One, NA (Main
Office Chicago), as Administrative Agent.

                                  WITNESSETH:

     WHEREAS pursuant to the Sale and Servicing Agreement, the Primary Seller
wishes to sell Asset Backed Securities to the Purchaser; and

     WHEREAS, the Purchaser is willing to purchase such Asset Backed Securities
subject to the terms and conditions hereof.

     NOW, THEREFORE, the Purchaser and the Primary Seller hereby agree as
follows:

     1. Defined Terms. Capitalized terms used herein shall have the meanings
        -------------
ascribed to them in Annex A to the Sale and Servicing Agreement, unless
otherwise defined herein.

     "ABS Sale Date" shall mean, with respect to the Asset Backed Securities
      -------------
sold hereby, the date hereof.

     2. Schedule of Asset Backed Securities. Annexed hereto is a Schedule A
        -----------------------------------
listing the Asset Backed Securities sold pursuant to this ABS Sale Agreement on
this ABS Sale Date.

     3. Sale of Asset Backed Securities. In consideration of the Purchaser's
        -------------------------------
delivery to or upon the order of the Primary Seller of $________, the Primary
Seller does hereby sell, transfer, assign, set over and otherwise convey to the
Purchaser, without recourse (except as expressly provided in the Sale and
Servicing Agreement), all right, title and interest of the Primary Seller in, to
and under the Asset Backed Securities sold on the date hereof as listed in
Schedule A annexed hereto, and all distributions thereon and the security
granted to, and the rights and benefits of the holder thereof under the related
ABS Documents.

     4. Representations and Warranties of the Primary Sellers. The Primary
        -----------------------------------------------------
Seller hereby represents and warrants to the Purchaser as of this ABS Sale Date
that:

          (a) Sale and Servicing Agreement. The representations and warranties
              ----------------------------
     set forth in Sections 4A.1 and 7.1 of the Sale and Servicing Agreement are
     true and correct with respect to the property sold pursuant to Section 3
                                                                    ---------
     hereof.

                                      A-6
<PAGE>

          (b) Principal Balance. As of the date hereof, the aggregate Principal
              -----------------
Balance of the Asset Backed Securities listed on Schedule A annexed hereto and
sold to the Purchaser pursuant to this ABS Sale Agreement is $_______________.

     5. Conditions Precedent. The obligation of the Purchaser to acquire the
        --------------------
Asset Backed Securities hereunder is subject to the satisfaction, on or prior to
the ABS Sale Date, of the following conditions precedent:

          (a) Representations and Warranties. Each of the representations and
              ------------------------------
warranties made by the Primary Seller in Section 4 of this ABS Sale Agreement
and in Sections 4A.1 and 7.1 of the Sale and Servicing Agreement shall be true
and correct with respect to the property sold pursuant to Section 3 hereof as of
                                                          ---------
this ABS Sale Date.

          (b) Sale and Servicing Agreement Conditions. Each of the conditions
              ---------------------------------------
set forth in Section 3.3 of the Sale and Servicing Agreement shall have been
satisfied with respect to the property sold pursuant to Section 3 hereof.
                                                        ---------

          (c) Additional Information. The Primary Seller shall have delivered to
              ----------------------
the Purchaser such information as was reasonably requested by the Purchaser to
satisfy itself as to the satisfaction of the conditions set forth in this
Section 5.
---------

     6. Ratification of Agreement. As supplemented by this ABS Sale Agreement,
        -------------------------
the Sale and Servicing Agreement, including without limitation Section 2.2(b)
thereof, is in all respects ratified and confirmed and the Sale and Servicing
Agreement as so supplemented by this ABS Sale Agreement shall be read, taken and
construed as one and the same instrument.

     7. Counterparts. This ABS Sale Agreement may be executed in two or more
        ------------
counterparts (and by different parties in separate counterparts), each of which
shall be an original but all of which together shall constitute one and the same
instrument.

     8. GOVERNING LAW. THIS ABS SALE AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE
        -------------
WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW
PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER
SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

                                      A-7
<PAGE>

     IN WITNESS WHEREOF, the Purchaser and the Primary Seller have caused this
ABS Sale Agreement to be duly executed and delivered by their respective duly
authorized officers as of the day and the year first above written.

                                     AMERICREDIT ONE TRUST

                                     By:  AmeriCredit Financial Services, Inc.
                                              Attorney-in-fact

                                     By:__________________________________
                                           Name:
                                           Title:

                                     AMERICREDIT FINANCIAL SERVICES, INC.,
                                     Primary Seller

                                     By:__________________________________
                                            Name:
                                            Title:

Acknowledged:

BANK ONE, NA (MAIN OFFICE COLUMBUS),
as Collateral Agent

by______________________________
      Name:
      Title:
<PAGE>

                                                                  Exhibit B-1 to
                                                    Sale and Servicing Agreement
                                                    ----------------------------

               FORM OF SERVICER'S DETERMINATION DATE CERTIFICATE
               -------------------------------------------------
<PAGE>

                                                                  Exhibit B-2 to
                                                    Sale and Servicing Agreement
                                                    ----------------------------

               FORM OF SERVICER'S VFN PREPAYMENT DATE CERTIFICATE
               --------------------------------------------------
<PAGE>

                                                                  Exhibit C-1 to
                                                    Sale and Servicing Agreement
                                                    ----------------------------

                        FORM OF RECEIVABLES SALE NOTICE
                        -------------------------------
<PAGE>

                                                                  Exhibit C-2 to
                                                    Sale and Servicing Agreement
                                                    ----------------------------

                            FORM OF ABS SALE NOTICE
                            -----------------------
<PAGE>

                                                                  Exhibit D-1 to
                                                    Sale and Servicing Agreement
                                                    ----------------------------

              FORM OF SERVICER'S RECEIVABLES SALE DATE CERTIFICATE
              ----------------------------------------------------
<PAGE>

                                                                  Exhibit D-2 to
                                                    Sale and Servicing Agreement
                                                    ----------------------------

                  FORM OF SERVICER'S ABS SALE DATE CERTIFICATE
                  --------------------------------------------
<PAGE>

                                                                       EXHIBIT E

                           SERVICER'S ACKNOWLEDGMENT

     AmeriCredit Financial Services, Inc. (the "Servicer"), acting as Servicer
                                                --------
under Sale and Servicing Agreement (the "Sale and Servicing Agreement"), dated
                                         ----------------------------
as of May 31, 2001, among AmeriCredit One Trust, AmeriCredit Financial Services,
Inc., as a Seller and Servicer, AmeriCredit Funding Corp. VI, as a Seller, and
Bank One, NA (Main Office Columbus), as Backup Servicer, and Bank One (Main
Office Chicago), as Administrative Agent, pursuant to which, among other things,
the Servicer holds on behalf of the Secured Parties certain "Receivable Files,"
as described in such Sale and Servicing Agreement, hereby acknowledges receipt
of the Receivable File for each Receivable listed in the Schedule of Receivables
attached as Exhibit A to the Receivables Sale Agreement, dated May 31, 2001,
between AmeriCredit Financial Services, Inc. or AmeriCredit Funding Corp. VI,
applicable, and AmeriCredit One Trust, except as noted in the Exception List
attached as Schedule I hereto.

     IN WITNESS WHEREOF, AmeriCredit Financial Services, Inc. has caused this
acknowledgment to be executed by its duly authorized officer as of this ___ day
of ______ .

                                    AMERICREDIT FINANCIAL SERVICES, INC.
                                     as Servicer

                                        By:
                                           ---------------------------
                                            Name:
                                            Title:
<PAGE>

                                                                    Exhibit F to
                                                    Sale and Servicing Agreement
                                                    ----------------------------

                   FORM OF SEMI-ANNUAL DATA INTEGRITY REVIEW
                   -----------------------------------------

                                 [Form to Come]
<PAGE>

                                                                    Exhibit G to
                                                    Sale and Servicing Agreement
                                                    ----------------------------

                           FORM OF ABS SCHEDULE OF INFORMATION
                           -----------------------------------

(a)               Receivables Pool Balance as of Reference Date

(b)               Principal Balance of Asset Backed Security

(c)               CUSIP number

(d)               Date last principal payment is due on Asset Backed Security

(e)               Interest Rate paid on Asset Backed Security

                                      D-5<PAGE>

                                                                   Exhibit 10.34

                                                                  EXECUTION COPY

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

                         SECURITY AND FUNDING AGREEMENT

                                  by and among
                                  ------------

                      AMERICREDIT ONE TRUST, as Borrower,

                       BANK ONE, NA (MAIN OFFICE CHICAGO),
                       as Administrative Agent on behalf
                            of the Secured Parties,

                      BANK ONE, NA (MAIN OFFICE COLUMBUS),
                as Collateral Agent and Securities Intermediary

                                       and
                                       ---

                           THE SEVERAL SECURED PARTIES
                         PARTY HERETO FROM TIME TO TIME

                            Dated as of May 31, 2001

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

                              TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                             Page
                                                                                             ----

ARTICLE I
                     <S>                                                                     <C>
                     DEFINITIONS

                     Section 1.1 Defined Terms .............................................  2
                                 -------------

ARTICLE II

                     THE COLLATERAL

                     Section 2.1 Grant of Security Interest by the Borrower ................  2
                                 ------------------------------------------
                     Section 2.2 No Transfer of Duties .....................................  4
                                 ---------------------
                     Section 2.3 Termination and Release of Rights .........................  4
                                 --------------------------------

ARTICLE III

                     THE ADMINISTRATIVE AGENT AND THE COLLATERAL AGENT

                     Section 3.1 Appointment and Powers ....................................  5
                                 ----------------------
                     Section 3.2 Performance of Duties .....................................  6
                                 ---------------------
                     Section 3.3 Limitation on Liability ...................................  6
                                 -----------------------
                     Section 3.4 Indemnification ...........................................  7
                                 ---------------
                     Section 3.5 Compensation and Reimbursement ............................  7
                                 ------------------------------
                     Section 3.6 Waiver of Setoffs .........................................  7
                                 -----------------
                     Section 3.7 Control by the Required APA Banks .........................  7
                                 ---------------------------------
                     Section 3.8 Successor Administrative Agent ............................  8
                                 ------------------------------

ARTICLE IV

                     REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE BORROWER

                     Section 4.1 Representations and Warranties of the Borrower ............  9
                                 ----------------------------------------------
                     Section 4.2 Covenants of the Borrower ................................. 12
                                 -------------------------

ARTICLE V

                     REQUIRED APA BANKS; INTERCREDITOR PROVISIONS

                     Section 5.1 Authority of Required APA Banks ........................... 17
                                 -------------------------------
                     Section 5.2 Rights of Secured Parties ................................. 18
                                 -------------------------
                     Section 5.3 Degree of Care ............................................ 18
                                 --------------
</TABLE>

                                                                 i
<PAGE>

<TABLE>
<CAPTION>

ARTICLE VI
                     <S>                                                                      <C>

                     TERMINATION EVENTS; REMEDIES

                     Section 6.1  Termination Events; Remedies ..............................  19
                                  ----------------------------
                     Section 6.2  Restoration of Rights and Remedies ........................  22
                                  ----------------------------------
                     Section 6.3  No Remedy Exclusive .......................................  22
                                  -------------------

ARTICLE VII

                     FUNDINGS; THE VFN

                     Section 7.1  Loans to Borrower; Funding Procedures; the VFN ............  22
                                  ----------------------------------------------
                     Section 7.2  Sharing of Payments, Etc ..................................  34
                                  ------------------------
                     Section 7.3  Right of Setoff ...........................................  34
                                  ---------------
                     Section 7.4  Interest ..................................................  35
                                  --------
                     Section 7.5  Payments Generally ........................................  36
                                  ------------------
                     Section 7.6  Broken Funding ............................................  36
                                  --------------
                     Section 7.7  Conversion and Continuation of Outstanding Advances .......  37
                                  ---------------------------------------------------
                     Section 7.8  Illegality ................................................  37
                                  ----------
                     Section 7.9  Inability to Determine Eurodollar Rate ....................  38
                                  --------------------------------------
                     Section 7.10 Fees ......................................................  39
                                  ----

ARTICLE VIII

                     INDEMNIFICATION

                     Section 8.1  Indemnity .................................................  39
                                  ---------
                     Section 8.2  Indemnity for Reserves and Expenses .......................  41
                                  -----------------------------------
                     Section 8.3  Indemnity for Taxes .......................................  43
                                  -------------------
                     Section 8.4  Other Costs, Expenses and Related Matters .................  45
                                  -----------------------------------------

ARTICLE IX

                     MISCELLANEOUS

                     Section 9.1  Further Assurances ........................................  46
                                  ------------------
                     Section 9.2  Waiver ....................................................  46
                                  ------
                     Section 9.3  Amendments; Waivers .......................................  46
                                  -------------------
                     Section 9.4  Severability ..............................................  47
                                  ------------
                     Section 9.5  Nonpetition Covenant ......................................  47
                                  --------------------
                     Section 9.6  Notices ...................................................  48
                                  -------
                     Section 9.7  Term of this Agreement ....................................  48
                                  ----------------------
                     Section 9.8  Assignments; Third-Party Rights ...........................  48
                                  -------------------------------
                     Section 9.9  Consent of Required APA Banks .............................  48
                                  -----------------------------
                     Section 9.10 Limitation of Liability ...................................  49
                                  -----------------------
                     Section 9.11 Counterparts ..............................................  49
                                  ------------
                     Section 9.12 Headings ..................................................  49
                                  --------
</TABLE>

                                      ii
<PAGE>

<TABLE>

                                                                                              Page
                                                                                              ----
                     <S>                                                                     <C>
                     Section 9.13 No Recourse Against Certain Parties .......................  49
                                  -----------------------------------
                     Section 9.14 Respective Rights of the Borrower and the Secured Parties
                                  ---------------------------------------------------------
                     in the Collateral ......................................................  50
                     -----------------
                     Section 9.15 Consents to Jurisdiction ..................................  50
                                  ------------------------
                     Section 9.16 Trial by Jury Waived ......................................  51
                                  --------------------
                     Section 9.17 Liabilities and Rights of Administrative Agent ............  51
                                  ----------------------------------------------
                     Section 9.18 CP Lender Generally .......................................  52
                                  -------------------
                     Section 9.19 Governing Law .............................................  54
                                  -------------
                     Section 9.21 Confidentiality ...........................................  54
                                  ---------------
                     Section 9.20 No Recourse ...............................................  53
                                  -----------
                     Section 9.21 Confidentiality ...........................................  54
                                  ---------------
</TABLE>

                                      iii
<PAGE>

                         SECURITY AND FUNDING AGREEMENT

     SECURITY AND FUNDING AGREEMENT, dated as of May 31, 2001 (this
"Agreement"), by and among AMERICREDIT ONE TRUST, a Delaware business trust (the
 ---------
"Borrower"), BANK ONE, NA (MAIN OFFICE CHICAGO), a national banking association
 --------
("Bank One Chicago"), as administrative agent on behalf of the Secured Parties
  ----------------
(together with its successors and assigns in such capacity, "Administrative
                                                             --------------
Agent"), BANK ONE, NA (COLUMBUS) ("Bank One Columbus"), as collateral agent
-----
hereunder (together with its successors and assigns in such capacity, the
"Collateral Agent"), and as securities intermediary hereunder (together with its
 ----------------
successors and assigns in such capacity, the "Securities Intermediary") and THE
                                              -----------------------
SEVERAL SECURED PARTIES PARTY HERETO FROM TIME TO TIME.

                              W I T N E S S E T H :
                              - - - - - - - - - -

     WHEREAS, pursuant to the Sale and Servicing Agreement, dated as of the date
hereof (the "Sale and Servicing Agreement"), among the Sellers, the Servicer,
             ----------------------------
the Backup Servicer, the Borrower, the Collateral Agent and the Administrative
Agent, the Sellers intend to sell to the Borrower from time to time all of their
rights, title and interests in and to certain receivables, securities and the
other property specified therein; and

     WHEREAS, the Borrower desires to obtain financing for the purchase of such
receivables and securities; and

     WHEREAS, it is a condition, among others, to the Borrower's obtaining
advances hereunder that the Borrower grant to the Administrative Agent on behalf
of the Secured Parties a first priority security interest in all of the
Borrower's right, title and interest in and to the Receivables, the Asset Backed
Securities and the other property specified herein;

     NOW THEREFORE, for good and valuable consideration, the adequacy, receipt
and sufficiency of which are hereby acknowledged, the parties hereto hereby
agree as follows:
<PAGE>

                                   ARTICLE I

                                  DEFINITIONS

     Section 1.1 Defined Terms. Capitalized terms defined in Annex A to the Sale
                 -------------
and Servicing Agreement, unless otherwise defined herein, shall have such
defined meanings when used herein.

                                   ARTICLE II

                                 THE COLLATERAL

     Section 2.1 Grant of Security Interest by the Borrower.
                 ------------------------------------------

     (a) The Borrower hereby grants to the Administrative Agent, on behalf of
and for the benefit of the Secured Parties to secure the payment and performance
of the respective Secured Obligations, a security interest in all of the
Borrower's right, title and interest, whether now owned or hereafter acquired
and wherever located, in, to and under all accounts, contract rights, general
intangibles, chattel paper, instruments, documents, money, cash, deposit
accounts, certificates of deposit, goods, letters of credit, advices of credit,
securities, investment property, financial assets, security entitlements or
instruments consisting of, arising from or relating to any of the following
property: (i) the Receivables; (ii) the Other Conveyed Property related thereto;
(iii) the Asset Backed Securities (including, in the case of Asset Backed
Securities in certificated form, each certificate evidencing the Asset Backed
Securities); (iv) the rights and benefits of the Borrower under (x) the Sale and
Servicing Agreement, (y) each Receivables Sale Agreement and ABS Sale Agreement
entered into between the relevant Seller and the Borrower pursuant to the Sale
and Servicing Agreement, including, but not limited to, the right to cause the
relevant Seller to repurchase Receivables or Asset Backed Securities, as the
case may be, from the Borrower under certain circumstances, and (z) the ABS
Documents relating to the Asset Backed Securities; (v) all amounts required to
be deposited, or delivered to the Administrative Agent for deposit, from time to
time to the Collection Account; (vi) the Pledged Accounts and all funds on
deposit from time to time in Pledged Accounts and all property credited thereto,
and in all investments and proceeds thereof (including all income thereon);
(vii) all funds on deposit from time to time in the Lockbox Account and all
property credited thereto and all rights and benefits of the Borrower under the
Lockbox Agreement; (viii) all amounts owing to

                                       2
<PAGE>

the Borrower and all other rights of the Borrower under any Hedge Contract; and
(ix) all present and future claims, demands, causes and choses in action in
respect of any or all of the foregoing and all payments on or under and all
proceeds of every kind and nature whatsoever in respect of any and all of the
foregoing, including all proceeds of the conversion, voluntary or involuntary,
into cash or other liquid property, all cash proceeds, accounts, accounts
receivables, notes, drafts, acceptances, chattel paper, checks, deposit
accounts, insurance proceeds, condemnation awards, rights to payment of any and
every kind and other forms of obligations and receivables, investment property,
financial assets, security entitlements or instruments and other property which
at any time constitute all or part of or are included in the proceeds of any of
the foregoing (collectively, the "Collateral").

     The Administrative Agent, for the benefit of the Secured Parties,
acknowledges such grant of a security interest.

     (b) The Borrower hereby assigns to the Administrative Agent for the benefit
of the Secured Parties all of its rights under the Sale and Servicing Agreement
(but not its obligations).

     (c) In order to effect the provisions and purposes of this Agreement,
including for the purpose of perfecting the security interests granted
hereunder, the Borrower represents and warrants that it has, on or prior to the
date of this Agreement, executed and filed or caused to be filed appropriate
UCC-1 financing statements in Delaware and has taken all other action necessary
to ensure that the Administrative Agent, as agent for the Secured Parties, has a
first priority perfected security interest in all of the Collateral that can be
perfected by the filing of a financing statement. Furthermore, on and as of each
Receivables Sale Date or ABS Sale Date, as applicable, the Borrower hereby
represents and warrants that the Borrower and the relevant Seller have taken all
other steps necessary under all applicable law in order to cause to exist in
favor of the Administrative Agent, on behalf of the Secured Parties, a valid,
subsisting and enforceable first priority perfected security interest in the
Borrower's first priority perfected security interest in each Asset Backed
Security and in the Financed Vehicle securing each Receivable pledged hereunder
on such date (and the proceeds of such Financed Vehicle) (provided, however,
that, prior to (X) the occurrence of a Servicer Termination Event, a Potential
Servicer Termination Event, a Termination Event or a Potential Termination Event
and the request by the Administrative Agent or, (Y) at any time, the request by
the Required APA Banks, for the recordation of the Borrower's and/or the
Administrative Agent's lien on such Financed Vehicle's certificate of title, no

                                       3
<PAGE>

such recordation shall be required), and such security interest is and shall be
prior to all other liens upon and security interests in such Financed Vehicle
that now exist or may hereafter arise or be created.

     Section 2.2 No Transfer of Duties. The security interests granted hereby
                 ---------------------
are granted as security only and shall not (i) transfer or in any way affect or
modify, or relieve the Borrower from, any obligation to perform or satisfy any
term, covenant, condition or agreement to be performed or satisfied by the
Borrower under or in connection with this Agreement or any other Basic Agreement
to which it is a party or (ii) impose any obligation on any of the Secured
Parties or the Administrative Agent to perform or observe any such term,
covenant, condition or agreement or impose any liability on any of the Secured
Parties for any act or omission on its part relative thereto or for any breach
of any representation or warranty on its part contained therein or made in
connection therewith except, in each case, to the extent specifically provided
herein and in the other Basic Agreements.

     Section 2.3 Termination and Release of Rights.
                 ---------------------------------

     (a) On each VFN Prepayment Date, the Administrative Agent shall, at the
expense of the Borrower: execute such instruments of release with respect to the
Prepayment Related Collateral, in recordable form if necessary, in favor of the
Borrower as the Borrower may reasonably request; deliver any Prepayment Related
Collateral in its possession to the Borrower; and otherwise take such actions,
and/or cause or permit the Servicer to take such actions, at the Borrower's
expense, as are necessary and appropriate to release the lien of this Agreement
and release and deliver to the Borrower the Prepayment Related Collateral.

     (b) On the Termination Date, except as otherwise provided herein, the
rights, remedies, powers, duties, authority and obligations conferred upon each
Secured Party pursuant to this Agreement shall terminate and be of no further
force and effect and all rights, remedies, powers, duties, authority and
obligations of each Secured Party with respect to the Collateral shall be
automatically released. On the Termination Date, each Secured Party agrees, at
the expense of the Borrower, to execute such instruments of release, in
recordable form if necessary, in favor of the Borrower as the Borrower may
reasonably request, to deliver any Collateral in its possession to the Borrower,
and otherwise to take such actions, and/or cause or permit the Servicer to take
such actions, as are necessary and appropriate to release the lien of this
Agreement and release and deliver to the Borrower the Collateral.

                                       4
<PAGE>

     (c) To the extent, if any, otherwise required of the Borrower by the terms
of any Basic Agreement and permitted by the terms hereof and thereof, the
Administrative Agent may, and otherwise upon the prior written instructions of a
respective Authorized Officer of each APA Bank that is a member of the Required
APA Banks, the Administrative Agent shall, at the expense of the Borrower, take
(in each case) such steps as may be necessary, or as the Borrower, in a manner
consistent with the Basic Agreements, may reasonably request, to release the
interests of the Secured Parties in any items of the Collateral, including but
not limited to redelivering and reassigning to the Borrower any releases
necessary to permit the Borrower to transfer its interest in such items of the
Collateral in accordance with the terms of the Basic Agreements.

     (d) No more than four times per month, the Administrative Agent shall, at
the Borrower's request and at the expense of the Borrower: (i) execute such
instruments of release with respect to Receivables that are not part of the
Receivables Pool Balance, in recordable form if necessary in favor of the
Borrower as the Borrower may request; deliver any related Collateral in its
possession to the Borrower; and otherwise take such actions, and/or cause the
Servicer to take such action, at the Borrower's expense, as are necessary or
appropriate to release the lien of this Agreement and release and deliver to the
Borrower the related Collateral; and (ii) take such actions, and/or cause the
Servicer to take such action, at the Borrower's expense, as are necessary or
appropriate to release the lien of this Agreement on any Asset-Backed Securities
in which the Secured Parties have no interest hereunder.

                                   ARTICLE III

                THE ADMINISTRATIVE AGENT AND THE COLLATERAL AGENT

     Section 3.1 Appointment and Powers.
                 ----------------------

     (a) The Secured Parties hereby appoint Bank One Chicago as the
Administrative Agent, and Bank One Chicago has accepted such appointment and has
agreed to act as Administrative Agent for the Secured Parties and to perform the
other duties of the Administrative Agent in accordance with the provisions of
this Agreement and the other Basic Agreements.

     (b) The parties hereto hereby acknowledge the appointment of Bank One
Columbus as Collateral Agent and as Securities Intermediary pursuant to the
terms of the Collateral Agent Agreement.

                                       5
<PAGE>

     Section 3.2 Performance of Duties. The Administrative Agent shall have no
                 ---------------------
duties or responsibilities except those expressly set forth in this Agreement
and the other Basic Agreements to which the Administrative Agent is a party or
as directed by the Required APA Banks in accordance with this Agreement. The
Administrative Agent shall not be required to take any discretionary actions
hereunder except at the written direction and with the indemnification of the
Required APA Banks.

     Section 3.3 Limitation on Liability. Neither the Administrative Agent nor
                 -----------------------
its directors, officers or employees shall be liable for any action taken or
omitted to be taken by it or them hereunder, or in connection herewith, except
that the Administrative Agent shall be liable for its gross negligence, bad
faith or willful misconduct; nor shall the Administrative Agent be responsible
for the validity, effectiveness, value, sufficiency or enforceability against
any Seller, the Servicer or the Borrower of this Agreement or any of the
Collateral (or any part thereof). Notwithstanding any term or provision of this
Agreement, the Administrative Agent shall incur no liability to any Seller, the
Servicer, the Borrower or the Secured Parties for any action taken or omitted by
the Administrative Agent in connection with the Collateral, except for the gross
negligence, bad faith or willful misconduct on the part of the Administrative
Agent, and shall incur no liability to any Seller, the Servicer, the Borrower or
the Secured Parties except for gross negligence, bad faith or willful misconduct
in carrying out its duties. Subject to Section 3.4, the Administrative Agent
                                       -----------
shall be protected and shall incur no liability to any such party in relying
upon the genuineness of any notice, demand, certificate, signature, instrument
or other document reasonably believed by the Administrative Agent to be genuine
and to have been duly executed by the appropriate signatory, and (absent actual
knowledge to the contrary) the Administrative Agent shall not be required to
make any independent investigation with respect thereto. The Administrative
Agent shall at all times be free independently to establish to its reasonable
satisfaction, but shall have no duty to independently verify, the existence or
nonexistence of facts that are a condition to the exercise or enforcement of any
right or remedy hereunder or under any of the other Basic Agreements. The
Administrative Agent may consult with counsel, and shall not be liable for any
action taken or omitted to be taken by it hereunder in good faith and in
accordance with the advice of such counsel. The Administrative Agent shall be
under no obligation to exercise any of the remedial rights or powers vested in
it by this Agreement or to follow any direction from the Required APA Banks or
any Secured Party, unless it shall have received reasonable

                                       6
<PAGE>

security or indemnity satisfactory to the Administrative Agent against the
costs, expenses and liabilities which might be incurred by it.

     Section 3.4 Indemnification. The Borrower shall indemnify the
                 ---------------
Administrative Agent, its directors, officers, employees and agents for, and
hold the Administrative Agent, its directors, officers, employees and agents
harmless against, any loss, liability or expense (including the costs and
expenses of defending against any claim of liability and reasonable attorneys
fees and expenses) arising out of or connection with the Administrative Agent's
acting as Administrative Agent hereunder, except such loss, liability or expense
as shall result from the gross negligence, bad faith or willful misconduct of
the Administrative Agent or its officers or agents. The obligation of the
Borrower under this Section 3.4 shall survive the termination of this Agreement
                    -----------
and the resignation or removal of the Administrative Agent.

     Section 3.5 Compensation and Reimbursement. The Borrower agrees for the
                 ------------------------------
benefit of the Secured Parties and as part of the Secured Obligations (a) to pay
to the Administrative Agent, from time to time, reasonable compensation for all
services rendered by it hereunder as set forth in the Fee Letter (which compen-
sation shall not be limited by any provision of law in regard to the
compensation of a collateral trustee); and (b) to reimburse the Administrative
Agent upon its request for all reasonable expenses, disbursements and advances
incurred or made by the Administrative Agent in accordance with any provision
of, or carrying out its duties and obligations under, this Agreement (including
the reasonable compensation and fees and the expenses and disbursements of its
agents, any independent certified public accountants and independent counsel),
except any expense, disbursement or advances as may be attributable to gross
negligence, bad faith or willful misconduct on the part of the Administrative
Agent.

     Section 3.6 Waiver of Setoffs. The Administrative Agent hereby expressly
                 -----------------
waives any and all rights of setoff that the Administrative Agent may otherwise
at any time have under applicable law with respect to any Pledged Account and
agrees that amounts in the Pledged Accounts shall at all times be held and
applied solely in accordance with the provisions hereof and of the other Basic
Agreements.

     Section 3.7 Control by the Required APA Banks. To the extent the
                 ---------------------------------
Administrative Agent is entitled to consent to or withhold its consent to any
waiver or amendment of this Agreement or the other Basic Agreements in
accordance with the terms hereof or thereof or otherwise take or omit to take
action upon

                                       7
<PAGE>

the occurrence of a Servicer Termination Event, a Potential Servicer Termination
Event, Termination Event or Potential Termination Event, the Administrative
Agent shall (a) give prompt notice to the Secured Parties of any such waiver,
amendment, Servicer Termination Event, Potential Servicer Termination Event,
Termination Event or Potential Termination Event of which it is aware and (b)
take such action with respect to such waiver, amendment, Servicer Termination
Event, Potential Servicer Termination Event, Termination Event or Potential
Termination Event as shall be directed by all of the Secured Parties (unless the
direction of the Required APA Banks is expressly required with respect to a
particular provision)

     Section 3.8 Successor Administrative Agent. The Administrative Agent may,
                 ------------------------------
upon 15 days' notice to the Sellers, and the Administrative Agent will, at the
direction of the Required APA Banks, resign as Administrative Agent; provided,
                                                                     --------
in either case, that such resignation shall not become effective until a
successor Administrative Agent has been appointed hereunder in accordance with
the next sentence. If the Administrative Agent shall resign as Administrative
Agent under this Agreement, then the Secured Parties shall appoint from among
the APA Banks a successor agent, whereupon such successor agent shall succeed to
the rights, powers and duties of the Administrative Agent, and the term
"Administrative Agent" shall mean such successor agent, effective upon its
acceptance of such appointment and its delivery of a duly executed counterpart
of this Agreement and an acknowledgment of such appointment to the APA Banks,
and the former Administrative Agent's rights, powers and duties as
Administrative Agent shall be terminated, without any other or further act or
deed on the part of such former Administrative Agent or any of the parties to
this Agreement. After the retiring Administrative Agent's resignation hereunder
as Administrative Agent, the provisions of this Article III shall inure to its
                                                -----------
benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent under this Agreement.

     The resigning Administrative Agent shall be entitled to compensation
accrued up to the date of resignation. The resigning Administrative Agent shall
be liable (under the terms hereof) for its actions or inaction prior to the
effective date of resignation.

                                   ARTICLE IV

                    REPRESENTATIONS, WARRANTIES AND COVENANTS
                                 OF THE BORROWER

                                       8
<PAGE>

          Section 4.1 Representations and Warranties of the Borrower. The
                      ----------------------------------------------
Borrower represents and warrants to the Administrative Agent and the Secured
Parties as of the date hereof, the Effective Date and each Funding Date that:

          (a) Organization and Good Standing. The Borrower has been duly
              ------------------------------
organized and is validly existing as a business trust under the laws of the
State of Delaware, with power and authority to own its properties and to conduct
its business as such properties are currently owned and such business is
currently conducted. The Borrower had at all relevant times and now has, power,
authority and legal right to acquire and own the Conveyed Property, Conveyed
Securities and the Other Conveyed Property, and to grant to the Administrative
Agent a security interest in the Collateral and to enter into and perform its
obligations under this Agreement.

          (b) Due Qualification; Power and Authority; No Violation. The Borrower
              ----------------------------------------------------
is duly qualified to do business as a foreign entity in good standing, and has
obtained all necessary licenses and approvals, in all jurisdictions in which the
ownership or lease of its property or the conduct of its business requires such
qualification. The Borrower has the power and authority to execute and deliver
this Agreement and the other Basic Agreements to which it is a party and to
carry out its terms and their terms, respectively; the Borrower has full power
and authority to grant to the Administrative Agent, for the benefit of the
Secured Parties, a perfected first priority security interest in the Collateral
and has duly authorized such grant by all necessary trust action; and the
execution, delivery and performance of this Agreement and the other Basic
Agreements to which it is a party have been duly authorized by the Borrower by
all necessary corporate action. The Trustee is duly authorized to execute for
and on behalf of the Borrower this Agreement and the other Basic Agreements to
which the Borrower is a party. The execution, delivery and performance by the
Borrower of this Agreement and the other Basic Agreements to which it is a party
require no action by or in respect of, or filing with, any governmental body,
agency or official, and do not contravene, or constitute a default under, any
provision of applicable law or regulation or of the Trust Agreement or of any
agreement, judgment, injunction, order, decree or other instrument binding upon
the Borrower or result in the creation or imposition of any Lien on assets of
the Borrower (other than the Lien of this Agreement), or require the consent or
approval of, or the filing of any notice or other documentation with, any
governmental authority or other Person. The Borrower has not entered into any
other Agreements other than the Basic Agreements and agreements necessary for
the transactions contemplated thereby.

                                       9
<PAGE>

          (c) Binding Effect. Each of this Agreement and the other Basic
              --------------
Agreements to which it is a party constitutes the legal, valid and binding
obligation of the Borrower, enforceable against the Borrower in accordance with
its terms, subject to applicable bankruptcy, insolvency, moratorium or other
similar laws affecting the rights of creditors.

          (d) Accuracy of Information. All information heretofore furnished by
              -----------------------
the Borrower to the Secured Parties for purposes of, or in connection with, this
Agreement or any transaction contemplated hereby is, and all such information
hereafter furnished by the Borrower to the Secured Parties will be, true and
accurate in every material respect, on the date such information is stated or
certified.

          (e) Tax Status. All tax returns (Federal, state and local) required to
              ----------
be filed with respect to the Borrower have been filed, and there has been paid
or adequate provision made for the payment of all taxes, assessments and other
governmental charges in respect of the Borrower.

          (f) Action, Suits. There are no actions, suits or proceedings pending
              -------------
or threatened against or affecting the Borrower or its properties, in or before
any court, arbitrator or other body, which may have a material adverse effect on
the Borrower's ability to perform its obligations hereunder or under the other
Basic Agreements.

          (g) Use of Proceeds. The proceeds of any Funding will be used by the
              ---------------
Borrower to acquire the Receivables, the Asset Backed Securities and Other
Conveyed Property related to the Receivables and Asset-Backed Securities from
the Sellers pursuant to the Sale and Servicing Agreement.

          (h) Place of Business. The chief place of business and chief executive
              -----------------
office of the Borrower are located at the Corporate Trust Office.

          (i) Merger and Consolidation. The Borrower has not changed its name,
              ------------------------
merged with or into or been consolidated with any other entity or been the
subject of any proceeding under Title 11, United States Code (Bankruptcy).

          (j) Solvency. The Borrower is not insolvent and will not be rendered
              --------
insolvent immediately following the consummation on the Effective Date and on
any Funding Date of the transactions contemplated by this Agreement and the
other

                                      10
<PAGE>

     Basic Agreements, including (but not limited to) the pledge by the Borrower
     to the Administrative Agent of the Collateral in accordance with this
     Agreement.

          (k) No Termination Event. After giving effect to each Funding, no
              --------------------
     Potential Termination Event or Termination Event exists.

          (l) Compliance. The Borrower has complied in all material respects
              ----------
     with all Requirements of Law in respect of the conduct of its business and
     ownership of its property.

          (m) Not an Investment Company. The Borrower is not an "investment
              -------------------------
     company" within the meaning of the Investment Company Act of 1940, as
     amended, or is exempt from all provisions of such Act.

          (n) ERISA. The Borrower is in compliance in all material respects with
              -----
     ERISA, and no lien in favor of the Pension Benefit Guaranty Corporation on
     any of the Receivables or Other Conveyed Property shall exist.

          (o) Ownership of the Borrower. One hundred percent (100%) of the
              -------------------------
     outstanding beneficial interest in the Borrower is and will be directly
     owned (both beneficially and of record) by two holders and such holders
     shall not include any Person other than the Primary Seller and the
     Secondary Seller. All certificates evidencing such beneficial interests are
     and will be validly issued, and there are no options, warrants or other
     rights to acquire such certificates of the Borrower.

          (p) No Material Adverse Change. Since March 31, 2001, and in the case
              --------------------------
     of the Borrower, as of the date of its formation, there has been no
     material adverse change in the business, assets, operations, prospects or
     conditions (financial or otherwise) of the Borrower, the Sellers, or the
     Servicer, either individually or taken as a whole.

          (q) Characteristics of Receivables and Asset Backed Securities. Each
              ----------------------------------------------------------
     of the statements listed on Schedules B and C of the Sale and Servicing
     Agreement is true and correct.

          Any document, instrument, certificate or notice delivered to any
     Secured Party by, or on behalf of, the Borrower or its Affiliates hereunder
     or under the other Basic Agreements shall be deemed a representation and
     warranty of the contents thereof by the Borrower.

                                       11
<PAGE>

          The representations and warranties set forth in this Section 4.1 shall
                                                               -----------
     survive the pledge and assignment of the Collateral to the Administrative
     Agent for the benefit of the Secured Parties. Upon discovery by the
     Borrower or any Secured Party of a breach of any of the foregoing
     representations and warranties, the party discovering such breach shall
     give prompt written notice to the others.

          Section 4.2 Covenants of the Borrower. The Borrower hereby covenants
                      -------------------------
     with the Secured Parties that, for so long as this Agreement shall be in
     effect:

          (a) Preservation of Collateral. Subject to the rights, powers and
              --------------------------
     authorities granted to the Administrative Agent and the Secured Parties in
     this Agreement, the Borrower shall take such action as is necessary and
     proper with respect to the Collateral in order to preserve and maintain
     such Collateral and to cause (subject to the rights of the Secured Parties)
     the Administrative Agent to perform its obligations with respect to such
     Collateral as provided herein. The Borrower will do, execute, acknowledge
     and deliver, or cause to be done, executed, acknowledged and delivered,
     such instruments of transfer or take such other steps or actions as may be
     necessary, or required by the Required APA Banks, to perfect the security
     interests granted hereunder in the Collateral, to ensure that such security
     interests rank prior to all other Liens and to preserve the priority of
     such security interests and the validity and enforceability thereof. Upon
     any delivery or substitution of Collateral, the Borrower shall be obligated
     to execute such documents and perform such actions as are necessary to
     create in the Administrative Agent for the benefit of the Secured Parties a
     valid first Lien on, and valid and perfected first priority security
     interest in, the Collateral so delivered and to deliver such Collateral to
     the Administrative Agent, free and clear of any other Lien, together with
     satisfactory assurances thereof, and to pay any reasonable costs incurred
     by any of the Secured Parties (including their respective agents) or
     otherwise in connection with such delivery. The Borrower will not take any
     action to cause the Collateral or any portion thereof to be an instrument
     (as such term is defined in the Relevant UCC).

          (b) Notices. In the event that the Borrower acquires knowledge of the
              -------
     occurrence and continuance of any Termination Event or Potential
     Termination Event under any of the Basic Agreements, the Borrower shall
     immediately give notice thereof to the Administrative Agent. The
     Administrative Agent shall immediately forward such notices to the Secured
     Parties.

                                       12
<PAGE>

          (c) Waiver of Stay or Extension Laws; Marshaling of Assets. To the
              ------------------------------------------------------
     fullest extent permitted by applicable law, the Borrower will not at any
     time insist upon, plead, or in any manner whatsoever claim or take the
     benefit or advantage of, any appraisement, valuation, stay, extension or
     redemption law wherever enacted, now or at any time hereafter in force, in
     order to prevent or hinder the enforcement of this Agreement or any
     absolute sale of the Collateral or any part thereof, or the possession
     thereof by any purchaser at any sale under Article VI of this Agreement;
                                                ----------
     and the Borrower, to the fullest extent permitted by applicable law, for
     itself and all who may claim under it, hereby waives the benefit of all
     such laws, and covenants that it will not hinder, delay or impede the
     execution of any power herein granted to the Administrative Agent, but will
     suffer and permit the execution of every such power as though no such law
     had been enacted.

          (d) Noninterference, Etc. The Borrower shall not (i) except to the
              --------------------
     extent expressly permitted or contemplated by Section 5.2 of the Sale and
                                                   -----------
     Servicing Agreement, waive or alter, or permit to be waived or altered any
     of its rights under the Collateral (or any agreement or instrument relating
     thereto) without the prior written consent of the Administrative Agent
     (acting at the direction of the Required APA Banks); or (ii) fail to pay
     any tax, assessment, charge or fee levied or assessed against the
     Collateral, or to defend any action, if such failure to pay or defend may
     adversely affect the priority or enforceability of the Borrower's right,
     title or interest in and to the Collateral or the Administrative Agent's
     lien on, and security interest in, the Collateral for the benefit of the
     Secured Parties; or (iii) take any action, or fail to take any action, if
     such action or failure to take action will interfere with the enforcement
     of any rights under the Basic Agreements.

          (e) Change in Name, Structure, etc. The Borrower shall not change its
              ------------------------------
     name, identity or corporate structure unless it shall have given the
     Administrative Agent at least 30 days' prior written notice thereof, shall
     have effected any necessary or appropriate filings of financing statements
     or amendments thereto, and shall have delivered to the Administrative Agent
     an Opinion of Counsel either (a) stating that, in the opinion of such
     counsel, such action has been taken with respect to the execution and
     filing of any amendments to previously recorded financing statements and
     continuation statements and other actions as are necessary to perfect,
     maintain and protect the lien and security interest of the Administrative
     Agent (and the priority thereof), on behalf of the Secured Parties, with
     respect to such Collateral and reciting the details of such action, or (b)
     stating that, in the opinion of such counsel, no such action is necessary
     to maintain such perfected lien and security interest.

                                       13
<PAGE>

          (f) Relocation of the Borrower. The Borrower shall not change its
              --------------------------
     chief executive office unless it gives the Administrative Agent at least 30
     days' prior written notice thereof. If the Borrower relocates its chief
     executive office or principal place of business from the Corporate Trust
     Office, the Borrower shall effect whatever appropriate recordations and
     filings are necessary and shall provide an Opinion of Counsel to the
     Administrative Agent, on behalf of the Required APA Banks, to the effect
     that, upon the recording of any necessary assignments or amendments to
     previously-recorded assignments and filing of any necessary amendments to
     the previously filed financing or continuation statements or upon the
     filing of one or more specified new financing statements, and the taking of
     such other actions as may be specified in such opinion, the security
     interests in the Collateral shall remain, after such relocation, valid and
     perfected.

          (g) Limitations on Activities. The Borrower shall not, without the
              -------------------------
     prior written consent of the Administrative Agent (acting at the direction
     of the Secured Parties):

               (i)   engage in any business or activity other than those set
          forth in Section 2.3 of the Trust Agreement;
                   -----------

               (ii)  incur any indebtedness, assume or guaranty any indebtedness
          of any other entity, other than any indebtedness to either Seller
          thereof incurred in connection with the acquisition of Receivables,
          Asset Backed Securities and Other Conveyed Property, which
          indebtedness shall be subordinated as set forth in the related
          Receivables Sale Agreement or ABS Sale Agreement, as applicable, or
          engage in any transactions with any Affiliates, except as contemplated
          under this Agreement and the other Basic Agreements (provided that
                                                               --------
          this clause shall not be deemed to prohibit the sale of Receivables or
          Asset Backed Securities on arm's-length terms, to an Affiliate of the
          Borrower in connection with an Optional Prepayment pursuant to this
          Agreement; provided further that no such sales shall be permitted to
                     -------- -------
          be made to AFS unless such sale is in connection with a public
          asset-backed transaction);

               (iii) 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

                                       14
<PAGE>

          bankruptcy, or consent to the appointment of a receiver, liquidator,
          assignee, trustee, sequestrator (or other similar official) of the
          trust or a substantial part of its property, or make any assignment
          for the benefit of creditors, or admit in writing its inability to pay
          its debts generally as they become due, or take any action in
          furtherance of any such action;

               (iv)  fail to (A) to the extent the Borrower's office is located
          in the offices of either Seller or any Affiliate of either Seller, pay
          fair market rent for its executive office space located in the offices
          of either Seller or any Affiliate of either Seller, (B) maintain the
          Borrower's books, financial statements, accounting records and other
          corporate documents and records separate from those of the Sellers or
          any other entity, (C) not commingle the Borrower's assets with those
          of the Sellers or any other entity, (D) act solely in its name and
          through its own authorized officers and agents, (E) make investments
          directly or by brokers engaged and paid by the Borrower or its agents
          (provided that if any such agent is an Affiliate of the Borrower, it
           --------
          shall be compensated at a fair market rate for its services), (F)
          separately manage the Borrower's liabilities from those of the Sellers
          or any Affiliates of the Sellers and pay its own liabilities,
          including all administrative expenses, from its own separate assets,
          and (G) pay from the Borrower's own assets all obligations and
          indebtedness of any kind incurred by the Borrower;

               (v)   amend, alter, change or repeal the Trust Agreement as in
          effect on the date hereof;

               (vi)  make any distribution to its equity holders, if: (A) any
          Termination Event or Potential Termination Event has then occurred and
          remains continuing or would result from such payment or other
          distribution; or (B), after giving effect thereto, the Borrower's net
          worth, determined in accordance with GAAP (but exclusive of funds on
          deposit in the Receivables Reserve Account and the ABS Reserve
          Account, and exclusive of the value of the Hedge Contract(s)), would
          be less than the greater of (x) five percent (5%) of the VFN Balance
          and (y) five percent (5%) of the largest VFN Balance that had at any
          time during the Facility Term been outstanding; or (C) such
          distribution is Receivables and such distribution is not in con-

                                       15
<PAGE>

          nection with a public-asset backed transaction; or (D) such
          distribution is of Receivables that are included in the Receivables
          Pool Balance or Asset Backed Securities in which the Secured Parties
          have a security interest hereunder; and

               (vii) merge with or into or be consolidated with any other
          entity.

          (h) Financial Reporting. The Borrower will maintain for itself a
              -------------------
     system of accounting established and administered in accordance with GAAP,
     and will furnish to the Administrative Agent for the benefit of the Secured
     Parties:

               (i)   Quarterly Reporting. Within forty-five (45) days after the
                     -------------------
          close of the first three quarterly periods of each of the Borrower's
          fiscal years, for AmeriCredit, consolidated unaudited balance sheets
          (which shall include those of the Borrower and the Servicer) as at the
          close of such period and consolidated related statements of operations
          and cash flows for the period from the beginning of such fiscal year
          to the end of such quarter, all certified by an Authorized Officer of
          AmeriCredit.

               (ii)  Annual Reporting. Within ninety (90) days after the close
                     ----------------
          of the final quarterly period of each of the Borrower's fiscal years,
          for AmeriCredit, consolidated audited balance sheets reported on by
          the Independent Accountants (which shall include those of the Borrower
          and the Servicer) as at the close of each such fiscal year and
          consolidated related statements of operations and cash flows reported
          on by the Independent Accountants for the period from the beginning of
          such fiscal year to the end of such fiscal year, all certified by an
          Authorized Officer of AmeriCredit.

               (iii) Compliance Certificate. Together with the financial
                     ----------------------
          statements required hereunder, a compliance certificate signed by an
          Authorized Officer of the Trustee stating that (x) the attached
          financial statements have been prepared in accordance with GAAP and
          accurately reflect the financial condition of the Borrower and (y) to
          the best of such Person's knowledge, no Termination Event, Potential
          Termination Event, Servicer Termination Event or Potential Servicer
          Termination Event exists, or if any Termination Event,

                                       16
<PAGE>

          Potential Termination Event, Potential Servicer Termination Event or
          Servicer Termination Event exists, stating the nature and status
          thereof.

          (i) Separateness. The Borrower shall take all reasonable steps
              ------------
     (including, without limitation, all steps that the Administrative Agent may
     from time to time reasonably request) to maintain the Borrower's identity
     as a separate legal entity from AFS or any of its Affiliates and to make it
     manifest to third parties that the Borrower is an entity with assets and
     liabilities distinct from those of AFS and each other Affiliate thereof.
     Without limiting the generality of the foregoing, the Borrower shall (1)
     maintain appropriate books and records, (2) cause its financial statements
     to be prepared in accordance with GAAP in a manner that indicates the
     separate existence of the Borrower and its assets and liabilities, (3) pay
     all its liabilities when due, (4) not assume the liabilities of either
     Seller or any Affiliate of either Seller, (5) not guarantee the liabilities
     of either Seller or any Affiliate of either Seller and (6) comply with (and
     cause the Sellers and the Servicer to comply with) all assumptions upon
     which counsel to the Borrower is relying in rendering its true sale and
     nonconsolidation opinions with respect to the Borrower and the Sellers.

          (j) Access to Records. The Borrower shall (but in any event, prior to
              -----------------
     a Termination Event, Potential Termination Event, Servicer Termination
     Event or Potential Servicer Termination Event on no more than four
     occasions per year), permit only the Secured Parties and their respective
     duly authorized representatives, attorneys or auditors to inspect the books
     and records maintained by the Borrower pursuant hereto at such times as any
     such Secured Party may reasonably request.

                                    ARTICLE V

                  REQUIRED APA BANKS; INTERCREDITOR PROVISIONS

          Section 5.1 Authority of Required APA Banks. The Borrower hereby
                      -------------------------------
     irrevocably appoints the Administrative Agent for the benefit of the
     Secured Parties its true and lawful attorney, with full power of
     substitution, in the name of the Borrower, the Secured Parties or
     otherwise, but at the expense of the Borrower, to the extent permitted by
     law to exercise in its sole and absolute discretion, at any time and from
     time to time while any Termination Event has occurred and is continuing,
     any or all of the rights and powers with respect to all or any of the
     Collateral as are specified or referred to in Article VI hereof.
                                                   ----------

                                       17
<PAGE>

          Section 5.2 Rights of Secured Parties. Each Secured Party that from
                      -------------------------
     time to time is not a part of the Required APA Banks expressly agrees that
     it shall not assert any right that it may otherwise have, as a Secured
     Party with respect to the Collateral, to direct the maintenance, sale or
     other disposition of the Collateral or any portion thereof, notwithstanding
     the occurrence and continuation of any Termination Event or any non-
     performance by the Borrower of any obligation owed to such Secured Party
     hereunder or under any other Basic Agreement, and each party hereto agrees
     that the Required APA Banks (or the Administrative Agent, as directed by
     the Required APA Banks) shall be the only Persons entitled to assert and
     exercise such rights.

          Section 5.3 Degree of Care. Notwithstanding any term or provision of
                      --------------
     this Agreement, no Secured Party (including any Secured Party that is a
     member of the Required APA Banks) shall incur any liability to AmeriCredit,
     the Sellers, the Servicer or the Borrower for any action taken or omitted
     by the Administrative Agent or any Secured Party (including any Secured
     Party that is a member of the Required APA Banks) in connection with the
     Collateral and, further, shall incur no liability to the Administrative
     Agent or any other Secured Party (including any Secured Party that is a
     member of the Required APA Banks); provided, however, that the foregoing
                                        -----------------
     shall not be deemed to relieve any Secured Party of liability for its own
     gross negligence, bad faith or willful misconduct. Each Secured Party
     (including any Secured Party that is a member of the Required APA Banks)
     shall be protected and shall incur no liability to any such party in
     relying upon the accuracy, acting in reliance upon the contents and
     assuming the genuineness of any notice, demand, certificate, signature,
     instrument or other document believed by such Secured Party to be genuine
     and to have been duly executed by the appropriate signatory, and (absent
     manifest error or actual knowledge to the contrary), no such Secured Party
     shall be required to make any independent investigation with respect
     thereto. Each Secured Party shall, at all times, be free independently to
     establish to its reasonable satisfaction the existence or nonexistence, as
     the case may be, of any fact the existence or nonexistence of which shall
     be a condition to the exercise or enforcement of any right or remedy under
     this Agreement or any of the other Basic Agreements.

                                   ARTICLE VI

                          TERMINATION EVENTS; REMEDIES

                                       18
<PAGE>

          Section 6.1 Termination Events; Remedies. (a) If a Termination Event
                      ----------------------------
     has occurred and is continuing, then, and in any such event, (A) if such
     Termination Event is one, only with respect to the Borrower, specified in
     clause (v) of the definition of Termination Event, the commitments of the
     APA Banks to the Borrower shall automatically terminate and the VFN Balance
     (together with accrued and unpaid interest thereon and all fees and other
     obligations of the Borrower accrued under and in connection with the Basic
     Agreements) shall automatically become due and payable, without
     presentment, demand, protest or other notice of any kind, all of which are
     hereby waived by the Borrower, and (B) in the case of any other Termination
     Event, the Administrative Agent shall, at the direction of the Required APA
     Banks, by notice to the Borrower, take either or both of the following
     actions, at the same or different times: (i) declare the commitments of the
     APA Banks to the Borrower to be terminated, and thereupon the obligations
     of the APA Banks to make Fundings to the Borrower shall terminate
     immediately, and (ii) declare the VFN Balance (together with accrued and
     unpaid interest thereon and all fees and other obligations of the Borrower
     accrued under and in connection with the Basic Agreements) to be due and
     payable, and thereupon such amounts shall be immediately due and payable,
     without presentment, demand, protest or other notice of any kind, all of
     which are hereby waived by the Borrower. In any of such events, the
     Administrative Agent shall, at the direction of the Required APA Banks,
     take whatever action at law or in equity as may appear necessary or
     desirable in the judgment of the Required APA Banks to collect and satisfy
     all Secured Obligations (including, but not limited to, foreclosure upon
     the Collateral and sale or securitization of the Collateral and all other
     rights available to secured parties under applicable law) or to enforce
     performance and observance of any obligation, agreement or covenant under
     any of the Basic Agreements. In addition to all other rights and remedies
     granted to the Administrative Agent for the benefit of the Secured Parties
     by this Agreement, the other Basic Agreements, the Relevant UCC and other
     applicable law, rules, or regulations, the Administrative Agent may with
     the consent of the Required APA Banks, and shall upon the request of the
     Required APA Banks, upon the occurrence and during the continuance of any
     such Termination Event, exercise any one or more of the following rights
     and remedies: (i) foreclose upon or otherwise enforce the security
     interests in any or all Collateral in any manner permitted by applicable
     law, rules, or regulations or in this Agreement; (ii) notify any or all
     Obligors to make payments with respect to Receivables directly to the
     Administrative Agent for the benefit of the Secured Parties; (iii) sell or
     otherwise dispose of any or all Collateral at one or more public or private
     sales, for cash or credit or future delivery, on such terms and in such
     manner as the Required APA Banks may determine; (iv) require the Borrower
     to assemble the Collateral and make

                                       19
<PAGE>

     it available to the Administrative Agent at a place to be designated by the
     Administrative Agent; (v) enter onto any property where any Collateral is
     located and take possession thereof with or without judicial process; and
     (vi) enforce any rights of the Borrower under any Receivable or other
     agreement to the extent the Required APA Banks deem appropriate.

          In furtherance of the Administrative Agent's rights hereunder, the
     Borrower hereby grants to the Administrative Agent for the benefit of the
     Secured Parties an irrevocable, non-exclusive license (exercisable without
     royalty or other payment by the Administrative Agent) to use, license or
     sublicense any patent, trademark, tradename, copyright or other
     intellectual property in which the Borrower now or hereafter has any right,
     title or interest, together with the right of access to all media in which
     any of the foregoing may be recorded or stored. Notwithstanding the
     foregoing, the Administrative Agent shall not be entitled to take any
     action and the Required APA Banks shall not be entitled to give any
     direction with respect to the Collateral, except to the extent provided
     herein and in the Sale and Servicing Agreement or the other Basic
     Agreements.

          (b) In the event of any sale, collection, conversion or other
     disposition into cash of the Collateral, or any part thereof, after
     deducting any actual costs and expenses incurred in connection with any
     such disposition, the Administrative Agent shall deposit the proceeds
     thereof into the Collection Account for distribution on the next succeeding
     Distribution Date in accordance with the priorities set forth in
     Section 6.8 of the Sale and Servicing Agreement. The Borrower hereby agrees
     -----------
     that ten (10) days' notice of any intended sale or disposition of any
     Collateral is reasonable.

          (c) The Administrative Agent on behalf of the Secured Parties shall be
     entitled to obtain from the Borrower all records and documentation in the
     possession of the Borrower pertaining to any Collateral. Upon consummation
     of any sale pursuant to this Section 6.1, the Required APA Banks or the
                                  -----------
     Administrative Agent acting on behalf of and at the direction of the
     Required APA Banks, shall have the right to assign, transfer, indorse and
     deliver to the purchaser or purchasers thereof, free and clear of any Lien,
     the Collateral, or any portion thereof or any interest therein, so sold.
     Each purchaser at any such sale shall hold the property purchased by it
     absolutely free and clear from any claim or right on the part of the
     Secured Parties or the Borrower; and the Borrower hereby irrevocably waives
     all rights of redemption, stay, marshaling of assets or appraisal that it
     now has or may at any time in the future have under applicable law or
     statute now existing or hereafter enacted.

                                       20
<PAGE>

           (d) In addition to the remedies granted in this Agreement and the
     other Basic Agreements, if a Termination Event has occurred and is
     continuing, the Administrative Agent shall, at the direction of the
     Required APA Banks, take whatever action at law or in equity as may appear
     necessary or desirable in the judgment of the Required APA Banks to collect
     the amounts then due and thereafter to become due under this Agreement and
     any of the other Basic Agreements (including but not limited to, all rights
     available to secured parties under applicable law) or to enforce
     performance and observance of any obligation, agreement or covenant under
     any of the Basic Agreements, including the exercise of the following powers
     with respect to the Collateral: (i) to demand, sue for, collect, receive
     and give acquittance for any and all monies due or to become due upon or by
     virtue thereof, (ii) to settle, compromise, compound, prosecute or defend
     any action or proceeding with respect thereto, (iii) to sell, securitize,
     transfer, assign or otherwise deal with the same or the proceeds thereof as
     fully and effectively as if the Administrative Agent were the absolute
     owner thereof, and (iv) to extend the time of payment of any or all thereof
     and to make any allowance or other adjustment with respect thereto. All
     proceeds of any portion of the Collateral liquidated pursuant to this
     Section 6.1 shall be applied as set forth in subsection (b) above.
     -----------

          (e) The Administrative Agent and the Required APA Banks, as the case
     may be, may exercise the powers and rights granted by this Section 6.1,
                                                                -----------
     without notice or demand to the Borrower except as provided in (a) above.

          (f) In addition to other remedies granted in this Agreement and the
     other Basic Agreements, if a Termination Event has occurred and is
     continuing, the Borrower, at the direction of the Administrative Agent
     (acting at the direction of the Required APA Banks) or the Required APA
     Banks, shall at its own expense (or shall cause the Servicer at its own
     expense pursuant to Section 5.5 of the Sale and Servicing Agreement)
     promptly take all additional steps, if any, as are necessary to create and
     maintain perfection of the security interest in the Financed Vehicle
     related to each Receivable (and the proceeds of such Financed Vehicle) on
     behalf of the Borrower and to create and maintain perfection of the
     security interest in the Borrower's security interest in the Financed
     Vehicle related to each Receivable (and the proceeds of such Financed
     Vehicle) on behalf of the Administrative Agent, for the benefit of the
     Secured Parties, including, if required by applicable law, having a
     notation of the Borrower's and/or the Administrative Agent's respective
     security interests recorded on such Financed Vehicle's certificate of
     title.

                                       21
<PAGE>

          Section 6.2 Restoration of Rights and Remedies. If the Administrative
                      ----------------------------------
     Agent has instituted any proceeding to enforce any right or remedy under
     this Agreement, and such proceeding has been discontinued or abandoned for
     any reason, or has been determined adversely to the Administrative Agent,
     then and in every such case the Borrower, the Secured Parties 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 Secured Parties shall continue as though no such
     proceeding had been instituted.

           Section 6.3 No Remedy Exclusive. No right or remedy herein conferred
                       -------------------
     upon or reserved to the Administrative Agent, the Required APA Banks or any
     of the other Secured Parties is intended to be exclusive of any other right
     or remedy, and every right or 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, in equity or otherwise and
     each and every right, power and remedy whether specifically herein given or
     otherwise existing may be exercised by the Required APA Banks, and the
     exercise of or the beginning of the exercise of any right or power or
     remedy shall not be construed to be a waiver of the right to exercise at
     the same time or thereafter any other right, power or remedy.

                                   ARTICLE VII

                                FUNDINGS; THE VFN

          Section 7.1 Loans to Borrower; Funding Procedures; the VFN.
                      ----------------------------------------------

          (a) Funding Generally. Upon the terms and subject to the conditions
              -----------------
     set forth herein, prior to the Commitment Expiry Date, and provided that no
                                                                --------
     Termination Event or Potential Termination Event shall have occurred and be
     continuing, the CP Lender may, in its sole discretion, and, in the event
     that the CP Lender declines to make any advance, the APA Banks shall
     (subject to the terms and conditions specified herein), collectively make
     an advance, under the terms and conditions hereof (any such advance, a
     "Funding" and the first such advance, the "Initial Funding") to the
      -------                                   ---------------
     Borrower from time to time on or after the Effective Date. Each Funding by
     an APA Bank shall be made on a pro rata basis based on such APA Bank's
     Commitment as a percentage of the Aggregate Commitment.

                                       22
<PAGE>

          To request Fundings hereunder, the Borrower shall notify the
     Administrative Agent of such request by telephone (a) in the case of a
     Eurodollar Funding, not later than 11:00 A.M. (New York time) three (3)
     Business Days before the date of the proposed Funding, (b) in the case of
     an ABR Funding, not later than 12:30 P.M. (New York time) on the proposed
     date of such Funding and (c) in the case of a CP Funding, (i) with respect
     to any Funding of $50,000,000 or less, not later than 6:00 P.M. (New York
     time) one (1) Business Day prior to the proposed date of such Funding and
     (ii) for all other amounts, not later than 12:30 P.M. (New York time) one
     (1) Business Day before the date of the proposed Funding. Each day on which
     a Funding is made hereunder shall be a Business Day. Each such telephonic
     request for a Funding shall be irrevocable and shall be confirmed promptly
     by hand delivery or telecopy to the Administrative Agent of a written
     funding request (each, a "Funding Request") in a form approved by the
                               ---------------
     Administrative Agent and signed by the Borrower. Each such telephonic and
     written Funding Request shall specify the following information in
     compliance with Section 7.1(b):
                     --------------

               (i)   the requested Advance Amount (calculated in accordance with
          the definition thereof, and which shall be at least $1,000,000 or
          integral multiples of $100,000 in excess thereof);

               (ii)  the date of such Funding, which shall be a Business Day;

               (iii) whether such Funding is to be a CP Funding, an ABR Funding
          or a Eurodollar Funding;

               (iv)  in the case of a Eurodollar Funding, the Eurodollar Funding
          Period to be applicable thereto, which shall be a period contemplated
          by the definition of the term "Eurodollar Funding Period"; and

               (v) the location and number of the Borrower's account to which
          funds are to be disbursed, which shall comply with the requirements of
          Section 7.1(f).
          --------------

     If no election as to the type of Funding is specified, then the requested
     Funding shall be at the discretion of the Administrative Agent (with the
     consent of the CP Lender). Promptly following receipt of a Funding Request
     in accordance with this Section 7.1(a), the Administrative Agent shall
                             --------------
     promptly advise each Secured Party of the

                                       23
<PAGE>

details thereof and of the amount of such Secured Party's loan to be made as
part of the requested Funding (if any). Notwithstanding anything to the contrary
in this Section 7.1(a), the Borrower shall be permitted to request up to two (2)
        --------------
Fundings per calendar week, and up to nine (9) Fundings per calendar month.

     (b) Conditions to Funding. No Secured Party shall have any obligation to
         ---------------------
advance any funds to the Borrower in connection with any Funding unless, on the
date of such Funding, (i) after giving effect to such Funding, the Aggregate Net
Investment would not exceed the Maximum Facility Limit; (ii) with respect to
each Secured Party, after giving effect to such Funding, the related Net
Investment of such Secured Party would not exceed the related Commitment; (iii)
each APA Bank's pro rata share of such Funding, would not exceed the amount of
                --- ----
its unused Commitment; (iv) the Borrower has provided a Funding Request to the
Administrative Agent, which Funding Request shall include the calculations
necessary to satisfy the requirement set forth in clauses (i), (ii) and (iii)
above and shall also include a certification by an authorized officer of the
Trustee on behalf of the Borrower that, to the best of such officer's knowledge,
no event has occurred since the most recent Funding that would have a material
and adverse effect on the Receivables, AmeriCredit, the Sellers, the Servicer or
the Borrower; (v) the Borrower shall have deposited in the ABS Reserve Account,
or shall have given irrevocable instructions to the Administrative Agent to
withhold from the proceeds of such Funding and to deposit in the ABS Reserve
Account, an amount equal to the ABS Reserve Account Shortfall, if any; (vi) the
Borrower shall have deposited in the Receivables Reserve Account, or shall have
given irrevocable instructions to the Administrative Agent to withhold from the
proceeds of such Funding and to deposit in the Receivables Reserve Account, an
amount equal to the Receivables Reserve Account Shortfall, if any; (vii) the VFN
is rated at least "A2" by Moody's and the VFN is rated at least "A" by S&P;
(viii) one or more binding and enforceable Hedge Contracts in an aggregate
notional amount equal to the Aggregate Net Investment (including any Aggregate
Net Investment to be made in connection with such Funding) are in full force and
effect in accordance with the terms of the Sale and Servicing Agreement; (ix)
each representation and warranty of the Borrower herein shall be true and
correct with respect to the Borrower and each Receivable as of the date of such
Funding; (x) a Potential Termination Event or a Termination Event, shall not
have occurred and be continuing; (xi) if the Funding is to be made by the CP
Lender through the issuance of Commercial Paper, the CP Lender has advised the
Administrative Agent that, in its sole discretion, it has elected to make such
Funding; (xii) in connection with the initial Funding following the Effective
Date, the conditions precedent set forth in Section 7.1(h) hereof and Section
                                            --------------
3.2 of the Sale and Servicing Agreement

                                       24
<PAGE>

shall be satisfied and (xiii) after giving effect to such Funding, no Pool
Limitation would be exceeded.

     Notwithstanding anything to the contrary set forth in this Agreement, no
APA Bank shall have any obligation to advance funds to the Borrower on any
Funding Date if, on such day, any Termination Event or Potential Termination
Event shall have occurred and be continuing. The Administrative Agent shall
notify each Secured Party of the receipt and content of any Funding Request by
no later than 2:30 P.M. (New York time) on the date on which such Funding
Request was received by the Administrative Agent; if such notification is
provided to the Secured Parties after 2:30 P.M. (New York time) on such date,
then the Funding Request shall be deemed to be received on the following
Business Day.

     The APA Banks' several obligations to provide the Borrower with funds
pursuant to this Article VII shall terminate on the Commitment Expiry Date.
                 -----------
Notwithstanding anything contained in this Section 7.1 or elsewhere in this
                                           -----------
Agreement to the contrary, no APA Bank shall be obligated to provide the
Borrower with aggregate funds in connection with a Funding Request in an amount
that would exceed such APA Bank's unused Commitment then in effect, and the
failure of any APA Bank to make its pro rata share of the Funding available to
                                    --- ----
the Borrower (subject to the terms and conditions set forth herein) shall not
relieve any other APA Bank of its obligations hereunder. The obligations of the
APA Banks hereunder to provide Fundings shall be several and not joint.

     (c) Receivables Advance Percentage. With respect to any Funding Date, the
         ------------------------------
advance percentage with respect to Receivables (the "Receivables Advance
                                                     -------------------
Percentage") shall be 89%, subject in the case of Receivables to downward
----------
adjustment on such Funding Date as described below:

          (1) if a "Trigger Event" (such term meaning, for purposes of this
     Section 7.1(c), a "Trigger Event" as defined in (i) any public asset-backed
     --------------
     transaction, which transaction has been outstanding for twenty-four months
     or less from the date hereof or (ii) if applicable, any comparable "spread
     capture event" in any automobile receivables transaction conducted by any
     Securitization Vehicle the "pool factor" of which is equal to or greater
     than 25%, whether or not defined in such transaction as a "Trigger Event"
     and whether or not such transaction is a public transaction) occurs which
     continues unremedied for two (2) monthly reporting periods and is waived by

                                       25
<PAGE>

     the party or parties entitled to exercise such waiver under the related
     transaction documentation, then the Receivables Advance Percentage in
     effect at the opening of business on such Funding Date shall be reduced by
     2%; provided that if the Receivables Advance Percentage has been reduced as
     a result of the application of this clause (1), the Receivables Advance
     Percentage shall remain at such reduced percentage until such time as the
     related Trigger Event has been cured for a period of three (3) consecutive
     months;

          (2) if a Trigger Event occurs, and is not waived by the Person or
     Persons entitled to exercise such waiver within the twenty-four month
     period referred to in (1) above for any particular asset-backed transaction
     (whether or not such transaction is a public transaction) (and such Trigger
     Event shall be deemed unwaived if there is no Person or Persons entitled to
     so waive), then the Receivables Advance Percentage in effect at the opening
     of business on such Funding Date shall be reduced by 6% (without
     duplication of any reduction pursuant to clause (1) above); provided that
                                                                 --------
     if the Receivables Advance Percentage has been reduced as a result of the
     application of this clause (2), the Receivables Advance Percentage shall
     remain at such reduced percentage until such time as the related Trigger
     Event has been cured for a period of three (3) consecutive months and

          (3) if there is an Excess Spread Deficiency (calculated as of the
     close of business two (2) Business Days prior to such Funding Date), then
     the Receivables Advance Percentage shall be reduced by the product of (i)
     the amount of such Excess Spread Deficiency (stated as a percentage)
     multiplied by (ii) 2.0; provided that if the Receivables Advance Percentage
     -------------           --------
     has been reduced as a result of the application of this clause (3), the
     Receivables Advance Percentage shall remain at such reduced percentage
     until such time as the Excess Spread Deficiency has been cured.

     (d) ABS Advance Percentage. With respect to any Funding Date, the advance
         ----------------------
percentage with respect to Asset-Backed Securities (the "ABS Advance
                                                         -----------
Percentage") shall be (i) 99% with respect to Asset-Backed Securities that are
----------
VPTNs (or fundings under VPRNs), and (ii) with respect to Asset-Backed
Securities consisting of money market tranches, 100%.

                                       26
<PAGE>

     (e) Funding Request Irrevocable. The notice of any proposed Funding shall
         ---------------------------
be irrevocable and binding on the Borrower, and the Borrower shall indemnify the
Secured Parties against any loss or expense incurred by the Secured Parties as
provided in Section 7.6 hereof.
            -----------

     (f) Disbursement of Funds. No later than 3:00 P.M. (New York City time) on
         ---------------------
the date on which a Funding is to be made, each Secured Party will make
available to the Borrower, in immediately available funds, the amount of the
Funding required to be made by it on such day by remitting the required amount
thereof to an account of the Borrower as designated in the related Funding
Request.

     (g) The VFN.
         -------

          (i) The Borrower's obligation to pay the principal of, and interest
     on, all amounts advanced by the Secured Parties pursuant to any Funding
     shall be evidenced by a single note of the Borrower (as amended,
     supplemented or otherwise modified and in effect from time to time, the
     "VFN") which shall (1) be dated the date hereof; (2) be in the stated
      ---
     principal amount equal to the Maximum Facility Limit (as reflected from
     time to time on the grid attached thereto); (3) bear interest as provided
     therein; (4) be payable to the order of the Administrative Agent for the
     account of the Secured Parties (in proportion to the pro rata shares of the
     Secured Parties based upon their respective Net Investments) and mature on
     the Distribution Date occurring in the calendar month seventy-eight (78)
     months following the Commitment Expiry Date (unless otherwise accelerated
     pursuant to the terms of the Basic Agreements); (5) be entitled to the
     benefits of this Agreement and the other Basic Agreements; and (6) be
     substantially in the form of Exhibit A to this Agreement, with blanks
     appropriately completed in conformity herewith. The Administrative Agent
     shall, and is hereby authorized to, make a notation on the schedule
     attached to the VFN of the date and the amount of each Funding and the date
     and amount of the payment of principal thereon, and prior to any transfer
     of the VFN, the Administrative Agent, on behalf of the Secured Parties,
     shall indorse the outstanding principal amount of the VFN on the schedule
     attached thereto. The entries made by the Administrative Agent pursuant to
     the preceding sentence shall be prima facie evidence of the existence and
                                     ----- -----
     amounts of the

                                       27
<PAGE>

     obligations recorded therein; provided, however, that failure to make such
                                   --------  -------
     notation shall not adversely affect the rights of the Secured Parties with
     respect to the payment obligations of the Borrower hereunder and under the
     VFN.

               (ii) The Borrower shall have the option to prepay all or a
     portion of the VFN Balance on any Business Day selected by the Borrower
     (each, an "Optional Prepayment"), subject to the following terms and
                -------------------
     conditions:

          1. The Borrower shall have given the Administrative Agent at least two
     (2) Business Days' prior written notice of its intent to effect an Optional
     Prepayment;

          2. Unless such Optional Prepayment is to be effected on a Distribution
     Date (in which case the relevant calculations with respect to such Optional
     Prepayment shall be reflected on the applicable Servicer's Determination
     Date Certificate), the Borrower shall cause the Servicer to deliver to the
     Administrative Agent, the Backup Servicer and the Rating Agencies a
     Servicer's VFN Prepayment Date Certificate substantially in the form of
     Exhibit B-2 to the Sale and Servicing Agreement, together with evidence to
     the Administrative Agent, the Backup Servicer and the Rating Agencies
     (which evidence may consist solely of the Servicer's VFN Prepayment Date
     Certificate) that the Borrower shall have sufficient funds on the
     contemplated VFN Prepayment Date to effect the Optional Prepayment in
     accordance with this Agreement. Any such Servicer's VFN Prepayment Date
     Certificate and related evidence shall be delivered to the Administrative
     Agent no later than 1:00 P.M. (New York time), in draft form at least two
     (2) Business Days prior to the contemplated VFN Prepayment Date and in
     final form at least one Business Day prior to the contemplated VFN
     Prepayment Date. In effecting an Optional Prepayment, the Borrower may (i)
     use the proceeds of sales of the Receivables and/or Asset Backed Securities
     (which sales must be made in arm's-length transactions to Persons other
     than AFS unless such sale is in connection with a public asset-backed
     transaction), and (ii) give effect to Collections on deposit in the
     Collection Account at such time to the extent consistent with the
     requirements of paragraph

                                       28
<PAGE>

     4 below (as evidenced by the Servicer's VFN Prepayment Date Certificate).

          3. In connection with any such Optional Prepayment that does not
     constitute a prepayment in full of the outstanding VFN Balance, then,
     following receipt by the Administrative Agent of the amounts referred to in
     paragraph 5 below, there shall be released from the Lien of this Agreement
     (subject to the requirements of paragraph 4 below): (i) a portion of the
     Receivables constituting a part of the Receivables Pool Balance selected by
     the Borrower in accordance with the eligibility criteria established for
     the related asset-backed transaction and additionally selected in
     accordance with the earliest origination date of all Receivables consistent
     with criteria determined by the Servicer and reasonably satisfactory to the
     Administrative Agent; provided, however, that the Borrower shall not have
                           --------  -------
     used any adverse selection procedures with respect to the Receivables; and
     (ii) such other Receivables not then constituting part of the Receivables
     Pool Balance or Asset Backed Securities in which the Secured Parties then
     have no interest, excluding, however, any Receivable or Asset Backed
     Securities subject to a Repurchase Obligation ("Other Designated
                                                     ----------------
     Receivables" or "Other Designated Asset Backed Securities," as applicable)
     -----------      ----------------------------------------
     as the Borrower intends to sell or distribute in accordance with the terms
     hereof and as are designated by the Borrower and specified in the
     Servicer's VFN Prepayment Date Certificate (such Receivables and/or Asset
     Backed Securities and such Other Designated Receivables or Other Designated
     Asset Backed Securities, together, in each case, with the related Other
     Conveyed Property, being collectively referred to as the "Prepayment
                                                               ----------
     Related Collateral").
     ------------------

          4. After giving effect to the Optional Prepayment and the release of
     Prepayment Related Collateral from the Lien of this Agreement on any VFN
     Prepayment Date, (x) the remaining VFN Balance minus Adjusted Collections,
                                                    -----
     plus the amount of accrued and unpaid interest or discount, as applicable,
     ----
     on all outstanding Fundings, together with all accrued and unpaid fees and
     other costs and expenses due and owing to the Secured Parties, shall be
     less than or equal to the amount resulting when the effective Receivables
     Advance Percentage is multiplied by the remaining Receivables Pool Balance,
     (y) none of the Receivables Pool Limitations shall be ex-

                                       29
<PAGE>

     ceeded and (z) a Termination Event or Potential Termination Event shall not
     have resulted;

          For purposes of the foregoing, "Adjusted Collections" means the
                                          --------------------
     product of (i) the effective Receivables Advance Percentage, and (ii) the
     amount of Collections on deposit in the Collection Account as of the close
     of business on the Business Day preceding the date of the Servicer's VFN
     Prepayment Date Certificate (which Collections shall be available for
     distribution in accordance with Article VI of the Sale and Servicing
     Agreement).

          5. On the related VFN Prepayment Date, the Administrative Agent shall
     have received, for the benefit of the Secured Parties, in immediately
     available funds, an amount equal to the sum of (i) the portion of the VFN
     Balance to be prepaid plus (ii) an amount equal to all unpaid CP Costs
                           ----
     (including CP Costs not yet accrued) to the extent reasonably determined by
     the Administrative Agent to be attributable to that portion of the
     Aggregate Net Investment to be prepaid plus (iii) an aggregate amount equal
                                            ----
     to the sum of all other amounts due and owing to the Administrative Agent
     and the Secured Parties under this Agreement and the other Basic Agreements
     (including, without limitation, pursuant to Section 7.6 hereof), to the
                                                 -----------
     extent accrued to such date and to accrue thereafter, as reasonably
     determined by the Administrative Agent to be attributable to that portion
     of the Aggregate Net Investment to be prepaid.

          6. In connection with the Optional Prepayment of any Funding made to
     the Borrower with the proceeds of Commercial Paper, the Borrower shall, on
     the related Interest Payment Date, pay to the CP Lender all CP Costs in
     connection therewith.

          The Borrower hereby agrees to pay the reasonable legal fees and
     expenses of the Administrative Agent and the Secured Parties in connection
     with any Optional Prepayment (including, but not limited to, expenses
     incurred in connection with the release of the Lien of the Administrative
     Agent over the Receivables, related Other Conveyed Property in connection
     with such Optional Prepayment) not to exceed $25,000 annually.

                                       30
<PAGE>

          (iii) Although the VFN shall be dated the date hereof, CP Costs in
     respect thereof shall be payable in the manner specified therein and in the
     other Basic Agreements only for the periods during which amounts are
     outstanding thereunder. In addition, although the stated principal amount
     of the VFN shall be equal to the Maximum Facility Limit, the VFN shall be
     enforceable with respect to the Borrower's obligation to pay the principal
     thereof only to the extent of the unpaid principal amount outstanding
     thereunder at the time such enforcement shall be sought. Principal on the
     VFN shall be payable by the Borrower in the manner and on the dates
     specified in the VFN and in the other Basic Agreements.

          (h) Conditions Precedent. The obligations of the Secured Parties under
              --------------------
     this Agreement on any Funding Date are subject to the accuracy of the
     representations and warranties on the part of the Borrower made herein and
     in the other Basic Agreements as of such Funding Date. This Agreement shall
     become effective on the first day on which all of the following conditions
     precedent have been satisfied (the "Effective Date"):
                                         --------------

               (i) The Administrative Agent shall have received such opinions of
          counsel to the Sellers, the Servicer and the Borrower, in form and
          substance acceptable to the Administrative Agent, addressing such
          matters as the Administrative Agent, on behalf of the Secured Parties,
          shall request.

               (ii) The Administrative Agent shall have received a certificate
          of the Borrower, dated the date hereof, stating that (1) its
          representations and warranties made herein and in the other Basic
          Agreements are true and correct as of the date hereof, and (2) the
          Borrower has complied with all agreements and satisfied all conditions
          to be satisfied on its part pursuant to this Agreement and the other
          Basic Agreements on or prior to the date hereof.

               (iii) All conditions precedent to the authentication and delivery
          of the VFN under this Agreement shall have been satisfied.

               (iv) Each party to a Basic Agreement shall have performed and
          complied with all agreements and conditions contained in such Basic
          Agreement and all other documents delivered in con-

                                       31
<PAGE>

          nection herewith or therewith which are required to be performed or
          complied with by such party.

               (v) This Agreement, the other Basic Agreements (other than the
          Hedge Contracts, the Receivables Sale Agreements and the ABS Sale
          Agreements which will be delivered in connection with the sale of
          Receivables or Asset Backed Securities, as applicable), the Fee
          Letter, and all agreements, certificates, instruments and other
          documents required to be delivered in connection herewith and
          therewith shall have been duly authorized, executed and delivered by
          the respective parties thereto, shall be in full force and effect and
          shall be in form and substance satisfactory to the Administrative
          Agent and the Secured Parties.

               (vi) The Administrative Agent shall have received the following,
          in each case in form and substance satisfactory to it:

                    (1) copy of the Trust Agreement, certified by the Secretary
               or an Assistant Secretary of the Trustee as of the date hereof,
               duly authorizing the execution, delivery and performance by the
               Borrower of the documents executed by on behalf of the Borrower
               in connection with the transactions contemplated by this
               Agreement and the other Basic Agreements to which it is a party;
               and attesting to the names and true signatures of the person or
               persons executing and delivering each such document;

                    (2) a copy of the resolutions of the Board of Directors of
               each Seller (or if either Seller is not a corporation, then
               comparable documents) and the Servicer, certified by the
               Secretary or an Assistant Secretary of such Sellers and the
               Servicer as of the date hereof, duly authorizing the execution,
               delivery and performance by the Sellers and the Servicer of each
               of the Basic Agreements to which each of them is a party and any
               other documents executed by or on behalf of the Sellers and the
               Servicer in connection with the transactions contemplated
               thereby; and an incumbency certificate of each Seller and the
               Servicer as to the person or persons executing and delivering
               each such document; and

                                       32
<PAGE>

                    (3) such other documents and evidence with respect to the
               Borrower, the Sellers, the Servicer and the Back-Up Servicer as
               the Administrative Agent may reasonably request in order to
               establish the trust or corporate existence and good standing of
               each thereof, the proper taking of all appropriate corporate or
               other proceedings in connection with the transactions
               contemplated by this Agreement and the other Basic Agreements and
               the compliance with the conditions set forth herein and therein.

               (vii) No fact or condition shall exist under applicable law or
          applicable regulations thereunder or interpretations thereof by any
          regulatory authority which, in the reasonable opinion of the
          Administrative Agent, would make it unlawful to issue the VFN or for
          the Borrower or any of the other parties thereto to perform their
          respective obligations under this Agreement and the other Basic
          Agreements.

               (viii) The Sellers and the Borrower shall have filed any
          financing statements or amendments thereto, wherever necessary or
          advisable in the judgment of the Administrative Agent, in order to
          perfect the transfer and assignment of the Receivables to the Borrower
          and the grant of the security interest therein to the Administrative
          Agent and shall have delivered file-stamped copies of such financing
          statements or other evidence of the filing thereof to the
          Administrative Agent.

               (ix) All taxes and fees due in connection with the filing of the
          financing statements referred to in clause (viii) of this Section
                                                                    -------
          7.1(h) shall have been paid in full or duly provided for.
          ------

               (x) No action or proceeding shall have been instituted nor shall
          any governmental action be threatened before any court or governmental
          agency nor shall any order, judgment or decree have been issued or
          proposed to be issued by any court or governmental agency to set
          aside, restrain, enjoin or prevent the performance of this Agreement
          or any of the other Basic Agreements or the transactions contemplated
          hereby or thereby.

                                       33
<PAGE>

     Section 7.2 Sharing of Payments, Etc. If any Secured Party (for purposes of
                 ------------------------
this Section 7.2 only, being a "Recipient") shall obtain any payment (whether
     -----------                ---------
voluntary, involuntary, through the exercise of any right of setoff, or
otherwise) on account of any interest in the VFN owned by it in excess of its
ratable share (based on the proportion of its Net Investment to the Aggregate
Net Investment) of payments on account of any interest in the VFN obtained by
such Secured Parties entitled thereto, such Recipient shall forthwith purchase
from such Secured Parties entitled to a share of such amount participations in
the percentage interests owned by such Persons as shall be necessary to cause
such Recipient to share the excess payment ratably with each such other Person
entitled thereto; provided, however, that if all or any portion of such excess
                  --------  -------
payment is thereafter recovered from such Recipient, such purchase from each
such other Person shall be rescinded and each such other Person shall repay to
the Recipient the purchase price paid by such Recipient for such participation
to the extent of such recovery, together with an amount equal to such other
Person's ratable share (according to the proportion of (a) the amount of such
other Person's required payment to (b) the total amount so recovered from the
Recipient) of any interest or other amount paid or payable by the Recipient in
respect of the total amount so recovered.

     Section 7.3 Right of Setoff. Without in any way limiting the provisions of
                 ---------------
Section 7.2, each of the Secured Parties is hereby authorized (in addition to
-----------
any other rights it may have) at any time after the occurrence of a Termination
Event or during the continuance of a Potential Termination Event to setoff,
appropriate and apply (without presentment, demand, protest or other notice
which are hereby expressly waived) any deposits and any other indebtedness held
or owing by such Secured Party to, or for the account of, the Borrower against
the amount owing by the Borrower hereunder to such Person (even if contingent or
unmatured).

     Section 7.4 Interest. (a) Borrower shall pay CP Costs with respect to any
                 --------
Funding (or portion thereof) funded by the CP Lender through the issuance of
Commercial Paper for each day that such Funding is outstanding. CP Costs will
accrue each day on a pro rata basis, based upon the percentage share the amount
of such Funding represents in relation to all assets held by the CP Lender and
funded with Pooled Commercial Paper.

          (b) At the option of the Borrower, any Funding (or portion thereof)
     made by the CP Lender other than through the issuance of Commercial Paper
     or by an APA Bank to the Borrower pursuant to Section 7.1 hereof shall bear
                                                   -----------
     interest at

                                       34
<PAGE>

     either (i) if available from such APA Bank to the Borrower on the related
     Funding Date, the related Eurodollar Rate for such APA Bank or (ii) in all
     other cases the Alternate Base Rate.

          (c) If any principal of, or interest on, any portion of any Funding or
     any fee or other amount payable by the Borrower hereunder is not paid when
     due, whether at stated maturity, upon acceleration or otherwise, such
     overdue amount shall bear interest, after as well as before judgment, at a
     rate per annum equal to the applicable Alternate Base Rate plus 2% (the
                                                                ----
     "Default Rate").
      ------------

          (d) Accrued Interest on each Funding shall be payable in arrears on
     each Interest Payment Date for such Funding and upon the Commitment Expiry
     Date and, if applicable, upon each Interest Payment Date following the
     Commitment Expiry Date; provided that (i) interest accrued pursuant to
                             --------
     paragraph (c) of this Section 7.4 shall be payable on demand, (ii) in the
                           -----------
     event of any repayment of any Funding or prepayment of any Funding (other
     than with respect to a CP Funding), accrued interest on the principal
     amount repaid or prepaid shall be payable on the date of such repayment or
     prepayment and (iii) in the event of any conversion of any ABR Funding or
     Eurodollar Funding pursuant to Section 7.7, accrued interest on such ABR
                                    -----------
     Funding or Eurodollar Funding shall be payable on the Distribution Date
     occurring immediately after such conversion.

          (e) All interest on Fundings hereunder shall be computed on the basis
     of a year of 360 days, except that interest computed when an Alternate Base
     Rate is based on the Prime Rate shall be computed on the basis of a year of
     365 days (or 366 days in a leap year), and in each case shall be payable
     for the actual number of days elapsed (including the first day but
     excluding the last day). The applicable CP Costs, Alternate Base Rate or
     Eurodollar Rate shall be determined by the Administrative Agent, and such
     determination shall be conclusive absent manifest error.

          (f) If a Termination Event (other than a Termination Event described
     in clause (p) of the definition thereof) has occurred and is continuing,
     then interest thereafter accruing on all Fundings then existing or
     thereafter made shall accrue at the Alternate Base Rate plus 2.00%.

          Section 7.5 Payments Generally. All payments by the Borrower hereunder
                      ------------------
shall be at the times, and in the manner, specified in Section 6.8 of the Sale
                                                       -----------
and Servicing Agreement. Notwithstanding any provision of this Agreement or the
other Basic Agreements to the contrary, all amounts due and owing to the

                                       35
<PAGE>

Administrative Agent and the other Secured Parties by the Borrower hereunder and
under the other Basic Agreements (if not due on an earlier date in accordance
with the terms hereof or the other Basic Agreements) will be due and payable on
the Distribution Date occurring in the month seventy-eight (78) months following
the Commitment Expiry Date.

     Section 7.6 Broken Funding. In the event of (i) the payment of any
                 --------------
principal of any Eurodollar Funding other than on the last day of a Eurodollar
Funding Period applicable thereto (including as a result of a Termination Event,
Potential Termination Event or Optional Prepayment), (ii) the conversion of any
Eurodollar Funding other than on the applicable Interest Payment Date or (iii)
any failure to borrow, convert, continue or prepay any Eurodollar Funding on the
date specified in any notice delivered pursuant hereto, then, in any such event,
the Borrower shall compensate the APA Banks, for the loss, cost and expense
attributable to such event. Such loss, cost or expense to any APA Bank shall be
deemed to include an amount determined by such APA Bank to be the excess, if
any, of (1) the amount of interest which would have accrued on the principal
amount of such Eurodollar Funding had such event not occurred, at the Eurodollar
Rate that would have been applicable to such Eurodollar Funding, for the period
from the date of such event to the Interest Payment Date therefor (or, in the
case of a failure to borrow, convert or continue, for the period that would have
been the related Eurodollar Funding Period), over (2) the amount of interest
which would accrue on such principal amount for such period at the interest rate
which such APA Bank would bid were it to bid, at the commencement of such
period, for dollar deposits of a comparable amount and period from other banks
in the interbank eurodollar market. A certificate of any APA Bank setting forth
any amount or amounts that such APA Bank is entitled to receive pursuant to this
Section 7.6 shall be delivered to the Borrower and shall be conclusive absent
-----------
manifest error. The Borrower shall pay each such APA Bank the amount shown as
due on any such certificate on the next succeeding Distribution Date after
receipt thereof.

     Section 7.7 Conversion and Continuation of Outstanding Advances Made by the
                 ---------------------------------------------------------------
APA Banks. Prior to the occurrence of a Termination Event or a Potential
---------
Termination Event, (a) each ABR Funding hereunder may, at the option of the
Borrower, be converted to a Eurodollar Funding, (b) each Eurodollar Funding
hereunder may, at the option of the Borrower, be continued as a Eurodollar
Funding or converted to an ABR Funding. If a Termination Event or Potential
Termination Event has occurred and is continuing, then, for so long as any such
Termination Event or Potential Termination Event is continuing, (i) no
outstanding Funding may

                                       36
<PAGE>

be converted to, or continued as, a Eurodollar Funding, (ii) unless repaid, each
Eurodollar Funding shall be converted to an ABR Funding on the next succeeding
Interest Payment Date related thereto. For any such conversion or continuation,
the Borrower shall give the Administrative Agent irrevocable notice (each, a
"Conversion/Continuation Notice") of such request not later than 12:30 P.M. (New
 ------------------------------
York time) (i) in the case of a conversion of an ABR Funding into a Eurodollar
Funding or a continuation of a Eurodollar Funding as a Eurodollar Funding three
(3) Business Days before the date of such conversion or continuation, as
applicable, and (ii) following the occurrence and continuation of a Termination
Event or a Potential Termination Event, in the case of a conversion of a
Eurodollar Funding into an ABR Funding or a continuation of an ABR Funding as an
ABR Funding, on the Business Day of such conversion (with a copy to the
Administrative Agent). If a Conversion/Continuation Notice has not been timely
delivered with respect to any Eurodollar Funding or ABR Funding, such Funding
shall be automatically continued as, or converted to, an ABR Funding. Each
Conversion/Continuation Notice shall specify (a) the requested date (which shall
be a Business Day) of such conversion or continuation, (b) the aggregate amount
and rate option applicable to the Funding which is to be converted or continued
and (c) the amount and rate option(s) of Funding(s) into which such Funding is
to be converted or continued.

     Section 7.8 Illegality. (a) Notwithstanding any other provision herein, if,
                 ----------
after the Effective Date, the adoption of any Law or bank regulatory guideline
or any amendment or change in the interpretation of any existing or future Law
or bank regulatory guideline by any Official Body charged with the
administration, interpretation or application thereof, or the compliance with
any directive of any Official Body (in the case of any bank regulatory
guideline, whether or not having the force of Law), shall make it unlawful for
any APA Bank to acquire or maintain a Eurodollar Funding as contemplated by this
Agreement, (i) such APA Bank shall promptly, after becoming aware thereof,
notify the Administrative Agent and the Borrower thereof, (ii) the commitment of
such APA Bank hereunder to make a portion of a Eurodollar Funding, continue any
portion of a Eurodollar Funding as such and convert an ABR Funding to a
Eurodollar Funding shall forthwith be cancelled, and such cancellation shall
remain in effect so long as the circumstance described above exists, and (iii)
such APA Bank's portion of any Eurodollar Funding then outstanding shall be
converted automatically to an ABR Funding on the last day of the related
Eurodollar Funding Period, or within such earlier period as required by law.

                                       37
<PAGE>

     If any such conversion of a portion of a Eurodollar Funding occurs on a day
which is not the last day of the related Eurodollar Funding Period, the Borrower
shall pay to such APA Bank such amounts, if any, as may be required to
compensate such APA Bank pursuant to Section 7.6 hereof. If circumstances
                                     -----------
subsequently change so that it is no longer unlawful for an affected APA Bank to
acquire or to maintain a portion of a Eurodollar Funding as contemplated
hereunder, such APA Bank will, as soon as reasonably practicable after such APA
Bank knows of such change in circumstances, notify the Borrower, and the
Administrative Agent (with a copy to the Administrative Agent), and upon receipt
of such notice, the obligations of such APA Bank to acquire or maintain its
acquisition of portions of Eurodollar Fundings or to convert its portion of an
ABR Funding into portions of Eurodollar Fundings shall be reinstated.

     (b) Each APA Bank agrees that, upon the occurrence of any event giving rise
to the operation of Section 7.8(a) with respect to such APA Bank, it will, if
                    --------------
requested by the Borrower and to the extent permitted by law or by the relevant
Official Body, endeavor in good faith to change the office at which it books its
portions of Eurodollar Fundings hereunder if such change would make it lawful
for such APA Bank to continue to acquire or to maintain its acquisition of
portions of Eurodollar Fundings hereunder; provided that such change may be made
                                           --------
in such manner that such APA Bank, in its sole determination, suffers no
unreimbursed cost or expense or any other disadvantage whatsoever.

     Section 7.9 Inability to Determine Eurodollar Rate. If, prior to the first
                 --------------------------------------
day of any Eurodollar Period:

          (i) the Administrative Agent shall have determined (which
     determination in the absence of manifest error shall be conclusive and
     binding upon the Borrower) that, by reason of circumstances affecting the
     relevant market, adequate and reasonable means do not exist for
     ascertaining the Eurodollar Rate for such Eurodollar Funding Period; or

          (ii) the Administrative Agent shall have received notice from one or
     more of the APA Banks that the Eurodollar Rate determined or to be
     determined for such Eurodollar Funding Period will not adequately and
     fairly reflect the cost to such APA Banks (as conclusively certified by
     such APA Banks) of purchasing or main-

                                       38
<PAGE>

     taining their affected portions of Eurodollar Fundings during such
     Eurodollar Funding Period;

then, in either such event, the Administrative Agent shall give telecopy or
telephonic notice thereof (confirmed in writing) to the Borrower and the other
APA Banks as soon as practicable thereafter. Until such notice has been
withdrawn by the Administrative Agent, no further Eurodollar Fundings shall be
made with respect to such APA Bank. The Administrative Agent agrees to withdraw
any such notice as soon as reasonably practicable after it is notified of a
change in circumstances which makes such notice inapplicable.

     Section 7.10 Fees. The Borrower hereby agrees to pay to the Administrative
                  ----
Agent, for the account of the Administrative Agent and the other Secured
Parties, the fees specified in the Fee Letter. Such payments shall be made to
the Administrative Agent on the dates and in the manner specified in the Fee
Letter.

                                  ARTICLE VIII

                                 INDEMNIFICATION

     Section 8.1 Indemnity. Without limiting any other rights which the Secured
                 ---------
Parties may have hereunder or under applicable law, the Borrower agrees to
indemnify the Secured Parties, the Administrative Agent and the Securities
Intermediary and any of their permitted assigns and their respective agents,
officers, directors and employees (collectively, "Indemnified Parties") from and
                                                  -------------------
against any and all damages, losses, claims, liabilities, costs and expenses,
including reasonable attorneys' fees (which such attorneys may be employees of
the Secured Parties, the Administrative Agent and the Securities Intermediary)
and disbursements (all of the foregoing being collectively referred to as
"Indemnified Amounts") awarded against or incurred by any of them arising out of
 -------------------
or as a result of this Agreement and the other Basic Agreements, excluding,
however, (i) Indemnified Amounts to the extent resulting from gross negligence
or willful misconduct on the part of an Indemnified Party or (ii) recourse
(except as otherwise specifically provided in this Agreement and the other Basic
Agreements) for uncollectible Receivables, Asset Backed Securities and Other
Conveyed Property. Such Indemnified Amounts shall be paid in accordance with the
terms of the other Basic Agreements. Without limiting the generality of the
foregoing, the Borrower shall indemnify each Indemnified Party for Indemnified
Amounts relating to or resulting from:

                                       39
<PAGE>

     (a) reliance on any representation or warranty made by the Borrower (or any
officers of the Borrower) under or in connection with this Agreement or any of
the other Basic Agreements, any Funding Request or any other information or
report delivered by the Borrower pursuant hereto or thereto, which shall have
been false or incorrect in any material respect when made or deemed made;

     (b) the failure by the Borrower to comply with any applicable law, rule or
regulation with respect to the Collateral, or the nonconformity of the
Collateral with any such applicable law, rule or regulation;

     (c) the failure to vest and maintain vested in the Administrative Agent on
behalf of the Secured Parties a first priority perfected security interest in
the Collateral (including, without limitation, all Financed Vehicles securing
Receivables), free and clear of any Lien (other than the Lien of this
Agreement);

     (d) the failure to file, or any delay in filing, financing statements,
continuation statements, or other similar instruments or documents under the
Relevant UCC or other applicable laws with respect to all or any part of the
Collateral or the failure to note the lien of the Borrower and/or the
Administrative Agent, on behalf of the Secured Parties, on the certificate of
title to any Financed Vehicle securing a Receivable, which failure has an
adverse effect on the validity, perfected status or priority of the security
interest granted to the Administrative Agent on behalf of the Secured Parties
under this Agreement;

     (e) any valid dispute, claim, offset or defense (other than discharge in
bankruptcy of the related Obligor) of the Obligor to the payment of any
Receivable (including, without limitation, a defense based on such Receivable
not being legal, valid and binding obligation of such Obligor enforceable
against it in accordance with its terms), or any other claim resulting from the
sale of a Financed Vehicle or services related to such Receivable or the
furnishing or failure to furnish such Financed Vehicle or services;

     (f) any failure of the Borrower to perform its duties, covenants or
obligations in accordance with the provisions of this Agreement;

     (g) any product liability claim or personal injury or property damage suit
or other similar or related claim or action of whatever sort arising out of or
in connection with the related Financed Vehicle or related merchandise or
services which are the subject of any Receivable; or

                                       40
<PAGE>

     (h) the co-mingling of Collections with any other funds;

     provided, however, that if the CP Lender enters into agreements for the
     --------  -------
purchase of interests in receivables from one or more Other Transferors, the CP
Lender shall allocate such Indemnified Amounts which are in connection with its
activities to the Borrower and each Other Transferor; and provided further that
                                                          -------- -------
if such Indemnified Amounts are attributable to the Borrower and not
attributable to any Other Transferor, the Borrower shall be solely liable for
such Indemnified Amounts or, if such Indemnified Amounts are attributable to
Other Transferors and not attributable to the Borrower, such Other Transferors
shall be solely liable for such Indemnified Amounts.

     Section 8.2 Indemnity for Reserves and Expenses. (a) If after the date
                 -----------------------------------
hereof, the adoption of any Law or bank regulatory guideline or any amendment or
change in the interpretation of any existing or future Law or bank regulatory
guideline by any Official Body charged with the administration, interpretation
or application thereof, or the compliance with any directive of any Official
Body (in the case of any bank regulatory guideline, whether or not having the
force of Law):

          (1) shall impose, modify or deem applicable any reserve, special
     deposit or similar requirement (including, without limitation, any such
     requirement imposed by the Board of Governors of the Federal Reserve
     System) against assets of, deposits with or for the account of, or credit
     extended by, any Indemnified Party or shall impose on any Indemnified Party
     or on the United States market for certificates of deposit or the London
     interbank market any other condition affecting this Agreement, the other
     Basic Agreements, any Asset Purchase Agreement, any liquidity agreement
     between the CP Lender and one or more financial institutions relating to
     this Agreement, the Collateral or payments of amounts due hereunder or
     thereunder or its obligation to advance funds under any agreement or
     otherwise in respect of this Agreement, the other Basic Agreements, any
     Asset Purchase Agreement, any liquidity agreement between the CP Lender and
     one or more financial institutions relating to this Agreement, or the
     Collateral; or

          (2) imposes upon any Indemnified Party any other expense (including,
     without limitation, reasonable attorneys'

                                       41
<PAGE>

     fees and expenses, and expenses of litigation or preparation therefor in
     contesting any of the foregoing) with respect to this Agreement, the other
     Basic Agreements, any Asset Purchase Agreement, any liquidity agreement
     between the CP Lender and one or more financial institutions relating to
     this Agreement, the Collateral or payments of amounts due hereunder or
     thereunder or its obligation to advance funds under any agreement or
     otherwise in respect of this Agreement, the other Basic Agreements, any
     Asset Purchase Agreement, any liquidity agreement between the CP Lender and
     one or more financial institutions relating to this Agreement, or the
     Collateral;

and the result of any of the foregoing is to increase the cost to such
Indemnified Party with respect to this Agreement, the other Basic Agreements,
any Asset Purchase Agreement, any liquidity agreement between the CP Lender and
one or more financial institutions relating to this Agreement, the Collateral
and the obligations hereunder and thereunder, by an amount reasonably deemed by
such Indemnified Party to be material, then, on the next succeeding Distribution
Date after demand by the Administrative Agent, the Borrower shall pay to the
Administrative Agent, for the benefit of such Indemnified Party, such additional
amount or amounts as will compensate such Indemnified Party for such increased
cost; provided that no such amount shall be payable with respect to any period
      --------
commencing more than two hundred seventy (270) days prior to the date the
Administrative Agent first notifies the Borrower of its intention to demand
compensation therefor under this Section 8.2(a); provided further that if such
                                 --------------  -------- -------
change in Law, rule or regulation giving rise to such increased costs or
reductions is retroactive, then such 270-day period shall be extended to include
the period of retroactive effect thereof.

     (b) If any Indemnified Party shall have determined that after the date
hereof, the adoption of any applicable Law or bank regulatory guideline
regarding capital adequacy, or any change therein, or any change in the
interpretation thereof by any Official Body, or any directive regarding capital
adequacy (in the case of any bank regulatory guideline, whether or not having
the force of law) of any such Official Body, has or would have the effect of
reducing the rate of return on capital of such Indemnified Party (or its parent)
as a consequence of such Indemnified Party's obligations hereunder or under any
of the Basic Agreements, any Asset Purchase Agreement, any liquidity agreement
between the CP Lender and one or more financial institutions relating to this
Agreement, or with respect hereto or thereto to a level below that which such
Indemnified Party (or its parent) could have achieved but for such adoption,
change, request or directive (taking into consider-

                                       42
<PAGE>

ation its policies with respect to capital adequacy) by an amount reasonably
deemed by such Indemnified Party to be material, then from time to time, within
ten (10) days after demand by the Administrative Agent, the Borrower shall pay
to the Administrative Agent, for the benefit of such Indemnified Party, such
additional amount or amounts as will compensate such Indemnified Party (or its
parent) for such reduction; provided that no such amount shall be payable with
                            --------
respect to any period commencing two hundred seventy (270) days prior to the
date the Administrative Agent first notifies the Borrower of its intention to
demand compensation under this Section 8.2(b); provided further that if such
                               --------------  -------- -------
change in Law, rule or regulation giving rise to such increased costs or
reductions is retroactive, then such 270-day period shall be extended to include
the period of retroactive effect thereof.

     (c) The Administrative Agent and the Securities Intermediary will promptly
notify the Borrower of any event of which it has knowledge, occurring after the
date hereof, which will entitle an Indemnified Party to compensation pursuant to
this Article VIII. A notice by the Administrative Agent claiming compensation
     ------------
for the benefit of an Indemnified Party under this Article VIII and setting
                                                   ------------
forth the additional amount or amounts to be paid to it hereunder shall be
conclusive in the absence of manifest error. In determining such amount, the
Administrative Agent or the Securities Intermediary may use any reasonable
averaging and attributing methods.

     Section 8.3 Indemnity for Taxes. (a) All payments made by the Borrower
                 -------------------
under this Agreement and any other Basic Agreement shall be made free and clear
of, and without deduction or withholding for or on account of, any present or
future income, stamp or other taxes, levies, imposts, duties, charges, fees,
deductions or withholdings, now or hereafter imposed, levied, collected,
withheld or assessed by any Official Body, excluding (i) taxes imposed on the
                                           ---------
net income of the Administrative Agent, the Securities Intermediary or any other
Indemnified Party, however denominated, and (ii) franchise taxes imposed on any
of them in lieu of income taxes, in each case imposed: (1) by the United States
or any political subdivision or taxing authority thereof or therein; (2) by any
jurisdiction under the laws of which the Administrative Agent, the Securities
Intermediary or such Indemnified Party or lending office is organized or in
which its lending office is located, managed or controlled or in which its
principal office is located or any political subdivision or taxing authority
thereof or therein; or (3) by reason of any connection between the jurisdiction
imposing such tax and the Administrative Agent, the Securities Intermediary,
such Indemnified Party or such lending office other than a connection arising
solely from this Agreement or any other Basic Agreement or any transaction

                                       43
<PAGE>

hereunder or thereunder (all such non-excluded taxes, levies, imposts, duties,
charges, fees, deductions or withholdings, collectively or individually,
"Taxes"). If any such Taxes are required to be withheld from any amounts payable
 -----
to the Administrative Agent, the Securities Intermediary or any Indemnified
Party hereunder, the amounts so payable to the Administrative Agent, the
Securities Intermediary or such Indemnified Party shall be increased to the
extent necessary to yield to such Person (after payment of all Taxes) all
amounts payable hereunder at the rates or in the amounts specified in this
Agreement and the other Basic Agreements. The Borrower shall indemnify the
Administrative Agent, the Securities Intermediary or any such Indemnified Party
for the full amount of any such Taxes on the Distribution Date immediately
succeeding the date of written demand therefor by such Person.

     (b) Each Indemnified Party that is not incorporated under the laws of the
United States of America or a state thereof or the District of Columbia shall:

          (i) deliver to the Borrower and to the Administrative Agent (A) two
     duly completed copies of IRS Form W-8BEN or Form W-8ECI, or successor
     applicable form, as the case may be, and (B) if applicable, an IRS Form W-8
     or W-9, or successor applicable form, as the case may be;

          (ii) deliver to the Borrower and to the Administrative Agent two (2)
     further copies of any such form or certification on or before the date that
     any such form or certification expires or becomes obsolete and after the
     occurrence of any event requiring a change in the most recent form
     previously delivered by it to the Borrower; and

          (iii) obtain such extensions of time for filing and complete such
     forms or certifications as may reasonably be requested by the Borrower or
     the Administrative Agent;

unless, in any such case, an event (including, without limitation, any change in
treaty, law or regulation) has occurred prior to the date on which any such
delivery would otherwise be required which renders all such forms inapplicable
or which would prevent such Indemnified Party from duly completing and
delivering any such form with respect to it, and such Indemnified Party so
advises the Borrower and the Administrative Agent. Each such Indemnified Party
so organized shall certify (i) in the case of an IRS Form W-8BEN or IRS Form
W-8ECI, that it is entitled to receive payments under the this Agreement and the
other Basic Agreements without deduc-

                                       44
<PAGE>

tion or withholding of any United States federal income taxes and (ii) in the
case of an IRS Form W-8 or IRS Form W-9, that it is entitled to an exemption
from United States backup withholding tax. Each Person that becomes a party to
this Agreement as an APA Bank, shall, prior to the effectiveness of such
assignment, participation or addition, as applicable, be required to provide all
of the forms and statements required pursuant to this Section 8.3.
                                                      -----------

     Section 8.4 Other Costs, Expenses and Related Matters. The Borrower agrees,
                 -----------------------------------------
upon receipt of a written invoice, to pay or cause to be paid, and to save the
Secured Parties, the Administrative Agent, and the Securities Intermediary
harmless against liability for the payment of, all reasonable out-of-pocket
expenses (including, without limitation, all reasonable attorneys', accountants'
and other third parties' fees and expenses, and any filing fees and expenses
incurred by officers or employees of the Secured Parties, the Administrative
Agent, or the Securities Intermediary) incurred by or on behalf of any Secured
Party, the Administrative Agent or the Securities Intermediary (i) in connection
with the negotiation, execution, delivery and preparation of this Agreement and
the other Basic Agreements and any documents or instruments delivered pursuant
hereto or thereto and the transactions contemplated hereby and thereby and (ii)
from time to time (a) relating to any amendments, waivers or consents under this
Agreement and the other Basic Agreements, (b) arising in connection with the
Administrative Agent's, the Securities Intermediary, the Secured Parties' or
their respective agents' enforcement or preservation of rights (including,
without limitation, the perfection and protection of the Administrative Agent's
first priority security interest in the Collateral), or (c) arising in
connection with any audit, dispute, disagreement, litigation or preparation for
litigation involving this Agreement.

                                   ARTICLE IX

                                  MISCELLANEOUS

     Section 9.1 Further Assurances. Each party hereto shall take such action
                 ------------------
and deliver such instruments to any other party hereto, in addition to the
actions and instruments specifically provided for herein, as may be reasonably
requested or required to effectuate the purpose or provisions of this Agreement
or to confirm or perfect any transaction described or contemplated herein.

     Section 9.2 Waiver. Any waiver by any party of any provision of this
                 ------
Agreement or any right, remedy or option hereunder shall only prevent and estop

                                       45
<PAGE>

such party from thereafter enforcing such provision, right, remedy or option if
such waiver is given in writing and only as to the specific instance and for the
specific purpose for which such waiver was given. The failure or refusal of any
party hereto to insist in any one or more instances, or in a course of dealing,
upon the strict performance of any of the terms or provisions of this Agreement
by any party hereto or the partial exercise of any right, remedy or option
hereunder shall not be construed as a waiver or relinquishment of any such term
or provision, but the same shall continue in full force and effect.

     Section 9.3 Amendments; Waivers. (a) Subject to the next succeeding
                 -------------------
provisos and Section 9.3(b), no amendment, waiver, supplement, modification or
             --------------
discharge of any provision of this Agreement shall be effective unless the
Rating Agency Condition shall have been satisfied and such waiver or
modification shall be in writing and signed by the Borrower and the
Administrative Agent, for itself and on behalf of the Required APA Banks, and
then such amendment, waiver, supplement, modification or discharge shall be
effective only in the specific instance and for the specific purpose for which
given; provided that no such action that (i) increases or decreases the
       --------
Commitment of any APA Bank hereunder, (ii) reduces amounts payable hereunder to
the Administrative Agent or any other Secured Party, (iii) modifies in any way
the payment of interest and/or discount, fees, indemnities and other amounts to
any Secured Party hereunder (or to the Administrative Agent on its behalf),
including any defined terms necessary to calculate any such amounts, (iv)
extends the Commitment Expiry Date or maturity of any amount due hereunder or
affects the ability of the CP Lender to assign its interests to the APA Banks
under the Asset Purchase Agreement, (v) amends, modifies or waives any
definition used herein which relates to or refers to a specific Secured Party,
(vi) increases the Commitment of any APA Bank, or (vii) modifies the provisions
of Section 7.1 or this Section 9.3 or the definition of "Required APA Banks" or
   -----------         -----------
any other provision hereof specifying the number or percentage of APA Banks
required to waive, amend or modify any rights hereunder or make any
determination or grant any consent hereunder; shall in any case be effective
without the prior written consent of such Person(s) affected thereby; provided
                                                                      --------
further that no such action that affects the rights, duties or obligations of
-------
the Administrative Agent shall be effective without the prior written consent of
the Person(s) affected thereby. In the case of any waiver, each of the parties
hereto shall be restored to its former position and rights hereunder, and any
Termination Event or Servicer Termination Event waived shall be deemed to be
cured and not continuing; but no such waiver shall extend to any subsequent or
other Termination Event or Servicer Termination Event, or impair any right
consequent thereon.

                                       46
<PAGE>

     (b) It is the intent of the parties hereto that the Borrower have the right
to amend this Agreement solely to add an additional lender or additional
lenders, subject to the approval of the Administrative Agent, which shall not be
unreasonably withheld or delayed.

     Section 9.4 Severability. In the event that any provision of this Agreement
                 ------------
or the application thereof to any party hereto or to any circumstance or in any
jurisdiction governing this Agreement shall, to any extent, be invalid or
unenforceable under any applicable statute, regulation or rule of law, then such
provision shall be deemed inoperative to the extent that it is invalid or
unenforceable and the remainder of this Agreement, and the application of any
such invalid or unenforceable provision to the parties, jurisdictions or
circumstances other than to whom or to which it is held invalid or
unenforceable, shall not be affected thereby nor shall the same affect the
validity or enforceability of any other provision of this Agreement. The parties
hereto further agree that the holding by any court of competent jurisdiction
that any remedy pursued by the Administrative Agent or any of the other Secured
Parties hereunder is unavailable or unenforceable shall not affect in any way
the ability of the Administrative Agent or any of the other Secured Parties to
pursue any other remedy available to it or them (subject, however, to any
provisions of this Agreement that expressly limit the exercise of such
remedies).

     Section 9.5 Nonpetition Covenant. Notwithstanding any prior termination of
                 --------------------
this Agreement, each of the parties hereto agrees that it shall not, prior to
one year and one day after the Termination Date, institute against, or join with
any other Person in instituting against, the Borrower any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceeding or other
similar proceeding under the laws of any jurisdiction. The parties agree that
damages will be an inadequate remedy for breach of this covenant and that this
covenant may be specifically enforced.

     Section 9.6 Notices. All notices, demands, certificates, requests and
                 -------
communications hereunder ("notices") shall be in writing and shall be effective
(a) upon receipt when sent through the U.S. mails, registered or certified mail,
return receipt requested, postage prepaid, with such receipt to be effective the
date of delivery indicated on the return receipt, or (b) one Business Day after
delivery to an overnight courier, or (c) on the date personally delivered to an
Authorized Officer of the party to which sent, or (d) on the date transmitted by
legible telecopier transmission with a confirmation of receipt, in all cases
addressed to the recipient at its

                                       47
<PAGE>

address set forth in Annex A to the Sale and Servicing Agreement. A copy of each
notice given hereunder to any party hereto shall also be given to (without
duplication) the Borrower and the Administrative Agent. Each party hereto may,
by notice given in accordance herewith to each of the other parties hereto,
designate any further or different address to which subsequent notices shall be
sent.

     Section 9.7 Term of this Agreement. This Agreement shall continue in effect
                 ----------------------
until the Termination Date. On such Termination Date, this Agreement shall
terminate, all obligations of the parties hereunder shall cease and terminate
and the Collateral, if any, held hereunder and not to be used or applied in
discharge of any obligations of the Borrower in respect of the Secured
Obligations or otherwise under this Agreement or any of the other Basic
Agreements, shall be released to and in favor of the Borrower; provided that the
                                                               --------
provisions of Sections 3.4, 3.5, 7.6, 9.5, and 9.13 and Article VIII shall
              -------- ---  ---  ---  ---      ----     ------------
survive any termination of this Agreement and the release of any Collateral upon
such termination.

     Section 9.8 Assignments; Third-Party Rights. This Agreement shall be a
                 -------------------------------
continuing obligation of the parties hereto and shall (i) be binding upon the
parties and their respective successors and assigns, and (ii) inure to the
benefit of and be enforceable by each Secured Party and the Administrative Agent
for the benefit of the Secured Parties, and by their respective successors,
transferees and assigns. The Borrower may not assign this Agreement, or delegate
any of its duties hereunder, without the prior written consent of all of the
Secured Parties.

     Section 9.9 Consent of Required APA Banks. In the event that the consent of
                 -----------------------------
the Required APA Banks is required under the terms hereof or under the terms of
any Basic Agreement, it is understood and agreed that, except as otherwise
provided expressly herein, the determination whether to grant or withhold such
consent shall be made solely by each Secured Party in its sole and absolute
discretion.

     Section 9.10 Limitation of Liability. The Administrative Agent shall not
                  -----------------------
have any obligations under this Agreement or any other Basic Agreement other
than those specifically set forth herein or therein, and no implied obligations
of the Administrative Agent shall be read into this Agreement or any other Basic
Agreement. Without limiting any other provision hereof, the parties further
expressly acknowledge and agree that in no event shall Bank One Chicago be
liable under or in connection with this Agreement for indirect, special or
consequential losses or damages of any kind, including lost profits, even if
advised of the possibil-

                                       48
<PAGE>

ity thereof and regardless of the form of action by which such losses or damages
may be claimed.

     Section 9.11 Counterparts. This Agreement may be executed in two or more
                  ------------
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.

     Section 9.12 Headings. The headings of Sections and paragraphs and the
                  --------
Table of Contents contained in this Agreement are provided for convenience only.
They form no part of this Agreement and shall not affect its construction or
interpretation.

     Section 9.13 No Recourse Against Certain Parties. No recourse under or with
                  -----------------------------------
respect to any obligation, covenant or agreement (including, without limitation,
any obligation or agreement to pay fees or any other amount) of the Borrower
contained in this Agreement or any other agreement, instrument or document
entered into by it pursuant hereto or in connection herewith shall be had
against any incorporator, Affiliate, stockholder, officer, employee, director or
agent of the Borrower solely by virtue of its acting in such capacity, by the
enforcement of any assessment, by any legal or equitable proceeding, by virtue
of any statute or otherwise; it being expressly agreed and understood that the
agreements of the Borrower contained in this Agreement and all of the other
agreements, instruments and documents entered into by it pursuant thereto or in
connection herewith are, in each case, solely the corporate obligations of the
Borrower, and that no personal liability whatsoever shall attach to or be
incurred by any incorporator, stockholder, Affiliate, officer, employee,
director or agent of the Borrower, or any of them, under or by reason of any of
the obligations, covenants or agreements of the Borrower contained in this
Agreement or in any other such instrument, document or agreement, or which are
implied therefrom, and that any and all personal liability of every such
incorporator, stockholder, affiliate, officer, employee, director or agent of
the Borrower for breaches by the Borrower of any such obligations, covenants or
agreements, which liability may arise either at common law or at equity, by
statute or constitution, or otherwise, is hereby expressly waived as a condition
of and in consideration for the execution of this Agreement; provided that the
                                                             --------
foregoing shall not relieve any such Person from any liability it might
otherwise have as a result of its fraudulent actions or omissions.

                                       49
<PAGE>

     Section 9.14 Respective Rights of the Borrower and the Secured Parties in
                  ------------------------------------------------------------
the Collateral. The Borrower hereby acknowledges and agrees that its interest in
--------------
the Collateral is subject and subordinate in all respects to its pledge of the
Collateral to the Secured Parties under this Agreement and that the
Administrative Agent holds the Collateral for the Secured Parties hereunder.

     Section 9.15 Consents to Jurisdiction. Each of the parties hereto
                  ------------------------
irrevocably submits to the jurisdiction of the United States District Court for
the Southern District of New York, any court in the State of New York located in
the city and county of New York, and any appellate court from any thereof, in
any action, suit or proceeding brought against it and related to or in
connection with this Agreement, the other Basic Agreements or the transactions
contemplated hereunder or thereunder or for recognition or enforcement of any
judgment and each of the parties hereto irrevocably and unconditionally agrees
that all claims in respect of any such suit or action or proceeding may be heard
or determined in such New York State court or, to the extent permitted by law,
in such federal court. Each of the parties hereto agrees that a final judgment
in any such action, suit or proceeding shall be conclusive and may be enforced
in other jurisdictions by suit on the judgment or in any other manner provided
by law. To the extent permitted by applicable law, each of the parties hereby
waives and agrees not to assert by way of motion, as a defense or otherwise in
any such suit, action or proceeding, any claim that it is not personally subject
to the jurisdiction of such courts, that the suit, action or proceeding is
brought in an inconvenient forum, that the venue of the suit, action or
proceeding is improper or that this Agreement or any of the other Basic
Agreements or the subject matter hereof or thereof may not be litigated in or by
such courts. The Borrower hereby irrevocably appoints and designates The
Prentice-Hall Corporation System, 500 Central Avenue, Albany, New York
12206-2290, as its true and lawful attorney and duly authorized agent for
acceptance of service of legal process. The Borrower agrees that service of such
process upon such Person shall constitute personal service of such process upon
it. Nothing contained in this Agreement shall limit or affect the rights of any
party hereto to serve process in any other manner permitted by law or to start
legal proceedings relating to any of the Basic Agreements against the Borrower
or its property in the courts of any jurisdiction.

     Section 9.16 Trial by Jury Waived. Each of the parties hereto waives, to
                  --------------------
the fullest extent permitted by law, any right it may have to a trial by jury in
respect of any litigation arising directly or indirectly out of, under or in
connection with this Agreement, any of the other Basic Agreements or any of the
transactions contemplated hereunder or thereunder. Each of the parties hereto
(a) certifies that no

                                       50
<PAGE>

representative, agent or attorney of any other party has represented, expressly
or otherwise, that such other party would not, in the event of litigation, seek
to enforce the foregoing waiver and (b) acknowledges that it has been induced to
enter into this Agreement and the other Basic Agreements to which it is a party,
by among other things, this waiver.

     Section 9.17 Liabilities and Rights of Administrative Agent. (a)
                  ----------------------------------------------
Notwithstanding any provision of this Agreement or any other Basic Agreement:
(i) the Administrative Agent shall have no obligations under this Agreement or
any other Basic Agreement other than those specifically set forth herein and
therein, and no implied obligations of the Administrative Agent shall be read
into this Agreement or any other Basic Agreement; and (ii) in no event shall the
Administrative Agent be liable under or in connection with this Agreement or any
other Basic Agreement for indirect, special, or consequential losses or damages
of any kind, including lost profits, even if advised of the possibility thereof
and regardless of the form of action by which such losses or damages may be
claimed. Neither shall the Administrative Agent nor any of its directors,
officers, agents or employees be liable for any action taken or omitted to be
taken in good faith by it or them under or in connection with this Agreement or
any other Basic Agreement, except for its or their own gross negligence or
willful misconduct. Without limiting the foregoing, the Administrative Agent (a)
may consult with legal counsel, independent public accountants and other experts
selected by it and shall not be liable for any action taken or omitted to be
taken in good faith by it in accordance with the advice of such counsel,
accountants or experts, (b) shall not be responsible to the Secured Parties, the
Sellers, the Servicer or the Borrower for any statements, warranties or
representations made in or in connection with this Agreement or the other Basic
Agreements (except for its own), (c) shall not be responsible to the Secured
Parties, the Sellers, the Servicer or the Borrower for the due execution,
legality, validity, enforceability, genuineness, sufficiency or value of this
Agreement or the other Basic Agreements (except with respect to itself), (d)
shall incur no liability under or in respect of any of the Commercial Paper or
other obligations of the CP Lender under this Agreement or the other Basic
Agreements and (e) shall incur no liability under or in respect of this
Agreement or the other Basic Agreements by acting upon any notice (including
notice by telephone), consent, certificate or other instrument or writing (which
may be by facsimile) believed by it to be genuine and signed or sent by the
proper party or parties. Notwithstanding anything else herein or in the other
Basic Agreements, it is agreed that where the Administrative Agent may be
required under this Agreement or the other Basic Agreements to give notice of
any event or condition or to take any action as a result of the occurrence of
any event or the existence of any condition, the

                                       51
<PAGE>

Administrative Agent agrees to give such notice or take such action only to the
extent that it has actual knowledge of the occurrence of such event or the
existence of such condition, and shall incur no liability for any failure to
give such notice or take such action in the absence of such knowledge.

     (b) The Administrative Agent hereby represents and warrants to the Sellers
and the Servicer that it is duly authorized to act on behalf of the CP Lender
and the APA Banks.

     (c) The Administrative Agent hereby confirms that the APA Banks have
executed and delivered the Asset Purchase Agreement and, by such execution and
delivery, have assumed all of the rights and obligations of the APA Banks
hereunder and under the other Basic Agreements. Upon effectiveness of this
Agreement and, with respect to each APA Bank, upon effectiveness of the Asset
Purchase Agreement, each APA Bank shall have all of the rights and benefits of
an "APA Bank" hereunder and under the other Basic Agreements, and each APA Bank
shall assume, and be bound by and liable for, all of the duties and obligations
of an "APA Bank" hereunder and thereunder to the extent specified herein and
therein, in each case as if such rights, benefits, duties, and obligations were
set forth in their entirety in the Asset Purchase Agreement.

     (d) All actions taken by any Secured Party hereunder or under any Basic
Agreement shall be taken by the Administrative Agent on behalf of such Secured
Party.

     Section 9.18 CP Lender Generally. (a) Each of the parties hereto hereby
                  -------------------
agrees that it will not institute against, or join with any other Person in
instituting against, the CP Lender any bankruptcy, insolvency, reorganization or
similar proceeding so long as any Commercial Paper or other notes issued by such
Purchaser shall be outstanding or there shall not have elapsed one year plus one
day since the last day on which any the CP Lender's Commercial Paper or other
notes shall have been outstanding.

     (b) Notwithstanding anything to the contrary contained herein, the
obligations of the CP Lender under this Agreement are solely the corporate
obligations of the CP Lender and (i) in the case of obligations of the CP Lender
other than Commercial Paper, shall be payable at such time as funds are actually
received by, or are available to, the CP Lender, in excess of funds necessary to
pay in full all of its outstanding Commercial Paper and, to the extent funds are
not available to pay such

                                       52
<PAGE>

obligations, the claims relating thereto shall not constitute a claim against
the CP Lender, but shall continue to accrue. Each party hereto agrees that the
payment of any claim (as defined in Section 101 of Title 11, United States Code
(Bankruptcy)) of any such party against the CP Lender, shall be subordinated to
the payment in full of all of such Lender's outstanding Commercial Paper.

     No recourse under any obligation, covenant or agreement of the CP Lender
contained in this Agreement shall be had against any incorporator, stockholder,
officer, director, member, manager, employee or agent of the CP Lender or any of
its Affiliates (solely by virtue of such capacity) by the enforcement of any
assessment or by any legal or equitable proceeding, by virtue of any statute or
otherwise; it being expressly agreed and understood that this Agreement is
solely a corporate obligation of the CP Lender, and that no personal liability
whatever shall attach to or be incurred by any incorporator, stockholder,
officer, director, member, manager, employee or agent of the CP Lender or any of
its Affiliates (solely by virtue of such capacity) or any of them under or by
reason of any of the obligations, covenants or agreements of the CP Lender
contained in this Agreement, or implied therefrom, and that any and all personal
liability for breaches by the CP Lender of any of such obligations, covenants or
agreements, either at common law or at equity, or by statute, rule or
regulation, of every such incorporator, stockholder, officer, director, member,
manager, employee or agent is hereby expressly waived as a condition of and in
consideration for the execution of this Agreement; provided that the foregoing
                                                   --------
shall not relieve any such Person from any liability it might otherwise have as
a result of their willful misconduct or of fraudulent actions taken or
fraudulent omissions made by them.

     (c) Each of the parties hereto hereby waives any right to setoff which it
may have or to it may be entitled against the CP Lender or its assets.

     Section 9.19 Governing Law. This Agreement shall be governed by and
                  -------------
construed, and the obligations, rights and remedies of the parties hereunder
shall be determined, in accordance with the laws of the State of New York.

     Section 9.20 No Recourse. It is expressly understood and agreed by the
                  -----------
parties hereto that (a) this Agreement is executed and delivered by Bankers
Trust (Delaware), not individually or personally but solely as trustee of the
Borrower, in the exercise of the powers and authority conferred and vested in
it, (b) each of the representations, undertakings and

                                       53
<PAGE>

agreements herein made on the part of the Borrower is made and intended not as
personal representations, undertakings and agreements by Bankers Trust
(Delaware) but is made and intended for the purpose of binding only the
Borrower, (c) nothing herein contained shall be construed as creating any
liability on Bankers Trust (Delaware), individually or personally, to perform
any covenant either expressed or implied contained herein, all such liability,
if any, being expressly waived by the parties hereto and by any Person claiming
by, through or under the parties hereto and (d) under no circumstances shall
Bankers Trust (Delaware) be personally liable for the payment of any
indebtedness or expenses of the Borrower or be liable for the breach or failure
of any obligation, representation, warranty or covenant made or undertaken by
the Borrower under this Agreement or any other related documents.

     Section 9.21 Confidentiality. The Borrower shall maintain and shall cause
                  ---------------
each of its employees and officers to maintain the confidentiality of this
Agreement and the other confidential or proprietary information with respect to
the Administrative Agent, the Securities Intermediary and each other Secured
Party and their respective businesses obtained by it or them in connection with
the structuring, negotiating and execution of the transactions contemplated
herein, except that the Borrower and its officers and employees may disclose
such information to the Borrower's external accountants and attorneys and as
required by any applicable law (including the Securities Act of 1933 and the
Securities Exchange Act of 1934) or order of any judicial or administrative
proceeding.

     (a) Anything herein to the contrary notwithstanding, the Borrower hereby
consents to the disclosure of any nonpublic information with respect to it (i)
to the Administrative Agent, the Securities Intermediary or any other Secured
Party by each other, (ii) by the Administrative Agent, the Securities
Intermediary or any other Secured Party to any prospective or actual assignee or
participant of any of them and (iii) by the Administrative Agent to any rating
agency, Commercial Paper dealer or provider of a surety, guaranty or credit or
liquidity enhancement to the CP Lender or any entity organized for the purpose
of purchasing, or making loans secured by, financial assets for which Bank One
Chicago acts as the administrative agent and to any officers, directors,
employees, outside accountants and attorneys of any of the foregoing. In
addition, the Administrative Agent, the Securities Intermediary and any other
Secured Party may disclose any such nonpublic information pursuant to any law,
rule, regulation, direction, request or order of any judicial, administrative or
regulatory authority or proceedings (whether or not having the force or effect
of law).

                                       54
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date set forth on the first page hereof.

                                    AMERICREDIT ONE TRUST, as Borrower

                                    By: Bankers Trust (Delaware), solely
                                        in its capacity as Trustee

                                    By:____________________________
                                       Name:
                                       Title:

                                    BANK ONE, NA (MAIN OFFICE
                                     CHICAGO), as Administrative Agent on
                                     behalf of the Secured Parties

                                    By:____________________________
                                       Name: Fouad S. Onbargi
                                       Title: Authorized Signatory

                                    FALCON ASSET SECURITIZATION
                                     CORPORATION, as a Secured Party

                                    By:____________________________
                                       Name: Fouad S. Onbargi
                                       Title: Authorized Signatory

                                    BANK ONE, NA (MAIN OFFICE
                                     COLUMBUS), as Collateral Agent and
                                     as Securities Intermediary

                                    By:____________________________
                                       Name: John J. Rothrock
                                       Title: Authorized Signer

<PAGE>

                                                                       EXHIBIT A

                                     FORM OF
                              VARIABLE FUNDING NOTE

         THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
         AMENDED (THE "ACT"). ANY RESALE OF TRANSFER OF THIS NOTE WITHOUT
         REGISTRATION THEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION
         EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND (A) TO AN
         INSTITUTIONAL "ACCREDITED INVESTOR" WITHIN THE MEANING OF RULE
         501(a)(1), (2), (3) OR (7) OF REGULATION D OF THE SECURITIES ACT OF
         1933, AS AMENDED (THE "SECURITIES ACT") OR (B) TO A PERSON WHO THE
         TRANSFEROR REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER
         WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT THAT IS AWARE
         THAT THE RESALE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE
         144A.

May 31, 2001

               Reference is hereby made to that certain Security and Funding
Agreement, dated as of May 31, 2001 (as amended, supplemented or otherwise
modified and in effect from time to time, the "Security and Funding Agreement")
                                               ------------------------------
by and among AmeriCredit One Trust, a Delaware business trust, as borrower (the
"Borrower"), Bank One, NA (Main Office Chicago), a national banking association,
 --------
as administrative agent (in such capacity, the "Administrative Agent"), Bank
                                                --------------------
One, NA (Main Office Columbus), a national banking association, as securities
intermediary (in such capacity, the "Securities Intermediary"), and the lenders
                                     -----------------------
and financial institutions party thereto from time to time (collectively, the
"Secured Parties"). Capitalized terms used herein and not otherwise defined
 ---------------
herein shall have the meanings assigned to such terms in, or incorporated by
reference into, the Security and Funding Agreement.

     FOR VALUE RECEIVED, the Borrower hereby promises to pay to the order of the
Administrative Agent, for the account of and for the benefit of the

                                      A-1
<PAGE>

Secured Parties at the principal office of the Administrative Agent at 1Bank One
Plaza, Chicago, IL 60670, Attention: Asset-Backed Finance, a principal sum equal
to _____________ MILLION DOLLARS ($____________), in lawful money of the United
States of America and in immediately available funds.

     The date and amount of each Funding extended by the Secured Parties to the
Borrower under the Security and Funding Agreement, and each payment of principal
thereof, shall be recorded by the Administrative Agent, for the account of the
applicable Secured Parties, on its books and, prior to any transfer of this Note
(or, at the discretion of the Secured Parties, at any other time), indorsed by
the Administrative Agent, on behalf of the Secured Parties, on the schedule
attached hereto or on any continuation thereof. Although the stated principal
amount of this Note is as stated above, this Note shall be enforceable only with
respect to the Borrower's obligation to pay the principal hereof to the extent
of the unpaid principal amount of the Fundings outstanding under the Security
and Funding Agreement at the time such enforcement shall be sought.

     CP Costs in respect of the outstanding principal amount of this Note shall
accrue pursuant to the Security and Funding Agreement and shall be payable to
the Administrative Agent for the benefit of the Secured Parties on the dates and
in the manner provided for in the Sale and Servicing Agreement and the Security
and Funding Agreement. CP Costs due and payable hereunder shall be payable in
accordance with the priorities set forth in Section 6.8 of the Sale and
Servicing Agreement.

     Principal in an amount equal to the Targeted Monthly Principal Payment, if
any, will be due and payable on each Distribution Date in accordance with the
priorities set forth in Section 6.8 of the Sale and Servicing Agreement. Unless
otherwise due and payable on an earlier date in accordance with the terms of the
Basic Agreements, the entire outstanding principal amount of this Note and
accrued interest thereon will be due and payable on the Distribution Date
occurring in the calendar month seventy-eight (78) months following the
Commitment Expiry Date.

     Following the occurrence of a Termination Event, the Administrative Agent
may, with the consent of the Required APA Banks, or shall, at the direction of
the Required APA Banks, declare all amounts due hereunder to be immediately due
and payable and exercise all remedies available to it pursuant to the Basic
Agreements and applicable law; provided that, upon the occurrence of an
                               --------
Insolvency Event with respect to the Borrower, all such amounts immediately
shall become due and

                                      A-2
<PAGE>

owing automatically without the need for presentment, demand, protest or other
notice of any kind, all of which are hereby waived by the Borrower.

     The Borrower's obligation to make payments hereunder shall be a limited
recourse obligation of the Borrower, payable solely from the Collateral, and no
recourse shall be had hereunder to the Borrower for payment hereunder except to
the extent of the Collateral. This Note does not purport to summarize the
Security and Funding Agreement or the other Basic Agreements, and reference is
hereby made to such agreements for information with respect to the interests,
rights, benefits, obligations, proceeds and duties evidenced hereby.

     The Borrower shall pay all costs of collection of any amount due hereunder
when incurred including, without limitation, reasonable attorney's fees and
expenses, and including all costs and expenses actually incurred in connection
with the pursuit by the Administrative Agent, on behalf of and at the direction
of the Secured Parties, of any of their rights or remedies referred to herein or
in the Security and Funding Agreement, or the protection of, or realization
upon, Collateral, and all such costs shall be payable in accordance with the
terms of the Security and Funding Agreement.

     The Borrower hereby waives presentment, notice of dishonor, protest and
other notice or formality with respect to this Note.

     This Note shall be governed by, and construed in accordance with, the laws
of the State of New York.

                                      A-3
<PAGE>

     IN WITNESS WHEREOF, the undersigned has executed and delivered this
Variable Funding Note as of the date and year first above written.

                              AMERICREDIT ONE TRUST

                              By: Bankers Trust (Delaware), solely in
                                   its capacity as Trustee

                              By: _______________________
                                  Name:
                                  Title:

                                      A-4

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