Document:

EXHIBIT 10.2

                 CATERPILLAR FINANCIAL ASSET TRUST 200[_]-[_]

                      Class A-1 [__]% Asset Backed Notes

                      Class A-2 [__]% Asset Backed Notes

                      Class A-3 [__]% Asset Backed Notes

                      Class A-4 [__]% Asset Backed Notes

                       Class B [__]% Asset Backed Notes

                           ADMINISTRATION AGREEMENT

                              Dated as of [Date]

                        ____________________________

                  CATERPILLAR FINANCIAL SERVICES CORPORATION

                                Administrator

                                      TABLE OF CONTENTS

1.    DUTIES OF ADMINISTRATOR................................................2

2.    RECORDS................................................................7

3.    COMPENSATION...........................................................7

4.    ADDITIONAL INFORMATION TO BE FURNISHED TO ISSUING ENTITY...............7

5.    INDEPENDENCE OF ADMINISTRATOR..........................................7

6.    NO JOINT VENTURE.......................................................8

7.    OTHER ACTIVITIES OF ADMINISTRATOR......................................8

8.    TERM OF AGREEMENT; RESIGNATION AND REMOVAL OF ADMINISTRATOR............8

9.    ACTION UPON TERMINATION, RESIGNATION OR REMOVAL........................9

10.   NOTICES................................................................9

11.   AMENDMENTS............................................................10

12.   SUCCESSORS AND ASSIGNS................................................10

13.   GOVERNING LAW.........................................................11

14.   HEADINGS..............................................................11

15.   COUNTERPARTS..........................................................11

16.   SEVERABILITY..........................................................11

17.   NOT APPLICABLE TO CATERPILLAR FINANCIAL SERVICES CORPORATION IN
      OTHER CAPACITIES......................................................11

18.   LIMITATION OF LIABILITY OF OWNER TRUSTEE AND INDENTURE TRUSTEE........11

19.   THIRD-PARTY BENEFICIARY...............................................11

20.   SUCCESSOR SERVICER AND ADMINISTRATOR..................................11

21.   NONPETITION COVENANTS.................................................12

EXHIBIT A - Form of Power of Attorney

      ADMINISTRATION  AGREEMENT,  dated as of [Date] (as amended,  modified or
supplemented  from  time  to  time,  this   "Agreement"),   among  CATERPILLAR
FINANCIAL  ASSET TRUST  200[_]-[_],  a Delaware  statutory trust (the "Issuing
Entity"),  CATERPILLAR FINANCIAL SERVICES CORPORATION,  a Delaware corporation
("CFSC"),  as  administrator  (the  "Administrator"),   CATERPILLAR  FINANCIAL
FUNDING  CORPORATION,  a Nevada  corporation,  as depositor (the "Depositor"),
and [Name of Indenture Trustee],  a national banking  association,  not in its
individual capacity but solely as trustee (the "Indenture Trustee").

                            W I T N E S S E T H :

      WHEREAS the Issuing  Entity is issuing the Class A-1 [__]% Asset  Backed
Notes (the  "Class A-1  Notes"),  the Class A-2 [__]% Asset  Backed Notes (the
"Class A-2 Notes"),  the Class A-3 [__]% Asset  Backed  Notes (the  "Class A-3
Notes"),  the Class A-4 [__]% Asset Backed Notes (the  "Class A-4  Notes") and
the Class B [__]% Asset Backed Notes (the "Class B Notes";  together  with the
Class A-1  Notes,  Class A-2  Notes,  the  Class A-3  Notes  and the Class A-4
Notes,  the  "Notes")  pursuant  to the  Indenture,  dated  as of  [Date]  (as
amended,  modified  or  supplemented  from  time to  time,  the  "Indenture"),
between the Issuing Entity and the Indenture Trustee.

      WHEREAS  the Issuing  Entity has  entered  into  certain  agreements  in
connection with the issuance of the Notes and of certain beneficial  ownership
interests  of  the  Issuing   Entity,   including  (i) a  Sale  and  Servicing
Agreement,  dated as of [Date] (as amended, modified or supplemented from time
to time, the "Sale and Servicing  Agreement")  (capitalized  terms used herein
and not defined  herein  shall have the  meanings  assigned  such terms in the
Sale and Servicing  Agreement,  or if not defined  therein,  in the Indenture)
among the  Issuing  Entity,  CFSC,  as  servicer,  and the  Depositor,  (ii) a
Depository  Agreement  dated [Date] (the  "Depository  Agreement"),  among the
Issuing Entity, the Indenture Trustee and The Depository Trust Company,  (iii)
the  Indenture  and (iv) the  Custodial  Agreement,  dated as of  [Date]  (the
"Custodial  Agreement"),  among CFSC, the Depositor,  the Issuing Entity,  the
Indenture  Trustee and [Name of Custodian],  as custodian  (the  "Custodian").
The Sale and Servicing  Agreement,  the  Depository  Agreement,  the Custodial
Agreement and the Indenture are  hereinafter  referred to  collectively as the
"Related Agreements";

      WHEREAS pursuant to the Related  Agreements,  the Issuing Entity and the
Owner Trustee are required to perform  certain  duties in connection  with (a)
the  Notes  and the  collateral  therefor  granted  to the  Indenture  Trustee
pursuant to the Indenture (the "Collateral") and (b) the beneficial  ownership
interests in the Issuing Entity (the holders of such interests  being referred
to herein as the "Owners");

      WHEREAS  the  Issuing  Entity and the Owner  Trustee  desire to have the
Administrator  perform  certain  of the duties of the  Issuing  Entity and the
Owner  Trustee  referred  to in the  preceding  clause,  and to  provide  such
additional  services  consistent  with  the  terms of this  Agreement  and the
Related  Agreements as the Issuing  Entity and the Owner Trustee may from time
to time request;

      WHEREAS the  Administrator  has the  capacity  to provide  the  services
required  hereby  and is  willing to perform  such  services  for the  Issuing
Entity and the Owner Trustee on the terms set forth herein;

      NOW,  THEREFORE,  in  consideration  of the mutual  covenants  contained
herein,  and other good and valuable  consideration,  the receipt and adequacy
of which are hereby acknowledged, the parties agree as follows:

1.    Duties of Administrator.

(a)   Duties with  Respect to the Related  Agreements.  (i) The  Administrator
agrees to perform all the duties of the Issuing  Entity and the Owner  Trustee
under the Depository Agreement.  In addition,  the Administrator shall consult
with the Owner  Trustee  regarding  the duties of the  Issuing  Entity and the
Owner Trustee under the Related  Agreements.  The Administrator  shall monitor
the  performance of the Issuing Entity and shall advise the Owner Trustee when
action  is  necessary  to  comply  with  the  Issuing  Entity's  or the  Owner
Trustee's  duties  under  the  Related  Agreements.  The  Administrator  shall
prepare  for  execution  by the Issuing  Entity or the Owner  Trustee or shall
cause the  preparation  by other  appropriate  persons of all such  documents,
reports,  filings,  instruments,  certificates and opinions as it shall be the
duty of the Issuing  Entity or the Owner  Trustee to prepare,  file or deliver
pursuant  to any Related  Agreement.  In  furtherance  of the  foregoing,  the
Administrator  shall take all  appropriate  action  that it is the duty of the
Issuing  Entity  or the  Owner  Trustee  to  take  pursuant  to the  Indenture
including,  without  limitation,  such of the  foregoing as are required  with
respect  to the  following  matters  under the  Indenture  (references  are to
sections of the Indenture):

(A)   the  preparation  of or  obtaining  of  the  documents  and  instruments
      required for  authentication  of the Notes,  if any, and delivery of the
      same to the Indenture Trustee (Section 2.02);

(B)   the  duty  to  cause  the  Note  Register  to be kept  and to  give  the
      Indenture  Trustee notice of any appointment of a new Note Registrar and
      the  location,  or change in  location,  of the Note  Register  (Section
      2.04);

(C)   the notification of Noteholders of the final principal  payment on their
      Notes (Section 2.07(b));

(D)   the fixing or causing to be fixed of any  specified  record date and the
      notification of the Indenture  Trustee and  Noteholders  with respect to
      special payment dates, if any (Section 2.07(c));

(E)   the preparation,  obtaining or filing of the  instruments,  opinions and
      certificates and other documents  required for the release of collateral
      (Section 2.09);

(F)   the duty to cause newly appointed  Paying Agents,  if any, to deliver to
      the  Indenture  Trustee  the  instrument   specified  in  the  Indenture
      regarding funds held in trust (Section 3.03);

                                        2

(G)   the direction to Paying Agents,  if any, to pay to the Indenture Trustee
      all sums held in trust by such Paying Agents (Section 3.03);

(H)   the obtaining and preservation of the Issuing Entity's  qualification to
      do  business  in each  jurisdiction  in which such  qualification  is or
      shall be necessary to protect the  validity  and  enforceability  of the
      Indenture,  the Notes,  the  Collateral  and each other  instrument  and
      agreement included in the Trust Estate (Section 3.04);

(I)   the preparation of all supplements,  amendments,  financing  statements,
      continuation  statements,  if any,  instruments of further assurance and
      other  instruments,  in accordance  with Section 3.05 of the  Indenture,
      necessary to protect the Trust Estate (Section 3.05);

(J)   the  obtaining  of the  Opinion of Counsel on the  Closing  Date and the
      annual delivery of Opinions of Counsel,  in accordance with Section 3.06
      of the  Indenture,  as to the Trust Estate,  and the annual  delivery of
      the Officer's  Certificate and certain other  statements,  in accordance
      with Section 3.09 of the Indenture,  as to compliance with the Indenture
      (Sections 3.06 and 3.09);

(K)   the identification to the Indenture Trustee in an Officer's  Certificate
      of a Person with whom the Issuing  Entity has  contracted to perform its
      duties under the Indenture (Section 3.07(b));

(L)   the  notification of the Indenture  Trustee and the Rating Agencies of a
      Servicer  Default  pursuant to the Sale and Servicing  Agreement and, if
      such  Servicer  Default  arises  from the  failure  of the  Servicer  to
      perform any of its duties under the Sale and  Servicing  Agreement,  the
      taking  of  all  reasonable  steps  available  to  remedy  such  failure
      (Section 3.07(d));

(M)   the preparation and obtaining of documents and instruments  required for
      the  release  of the  Issuing  Entity  from  its  obligation  under  the
      Indenture (Section 3.11(b));

(N)   the delivery of notice to the Indenture  Trustee and the Rating Agencies
      of each Event of Default and each  default by the  Servicer or Depositor
      under the Sale and Servicing Agreement (Section 3.19);

(O)   the   monitoring  of  the  Issuing   Entity's   obligations  as  to  the
      satisfaction  and discharge of the Indenture and the  preparation  of an
      Officer's  Certificate  and the  obtaining of the Opinion of Counsel and
      the Independent Certificate relating thereto (Section 4.01);

(P)   the compliance with any written  directive of the Indenture Trustee with
      respect  to the sale of the Trust  Estate in a  commercially  reasonable
      manner if an Event of Default  shall  have  occurred  and be  continuing
      (Section 5.04);

                                        3

(Q)   the  preparation and delivery of notice to Noteholders of the removal of
      the  Indenture  Trustee and the  appointment  of a  successor  Indenture
      Trustee (Section 6.08);

(R)   the  preparation  of any written  instruments  required to confirm  more
      fully the  authority  of any  co-trustee  or  separate  trustee  and any
      written  instruments  necessary in connection  with the  resignation  or
      removal of any co-trustee or separate trustee (Sections 6.08 and 6.10);

(S)   the furnishing of the Indenture  Trustee with the names and addresses of
      Noteholders  during any  period  when the  Indenture  Trustee is not the
      Note Registrar (Section 7.01);

(T)   the preparation  and, after execution by the Issuing Entity,  the filing
      with the  Commission,  any  applicable  state agencies and the Indenture
      Trustee of documents  required to be filed on a periodic basis with, and
      summaries   thereof  as  may  be  required  by  rules  and   regulations
      prescribed by, the Commission and any applicable  state agencies and the
      transmission  of  such  summaries,  as  necessary,  to  the  Noteholders
      (Section 7.03);

(U)   the opening of one or more accounts in the Issuing  Entity's  name,  the
      preparation of Issuer  Orders,  Officer's  Certificates  and Opinions of
      Counsel and all other actions  necessary  with respect to investment and
      reinvestment of funds in the Trust Accounts (Sections 8.02 and 8.03);

(V)   the  preparation of an Issuer Request and Officer's  Certificate and the
      obtaining  of an Opinion of Counsel  and  Independent  Certificates,  if
      necessary,  for the  release  of the  Trust  Estate  as  defined  in the
      Indenture (Sections 8.04 and 8.05);

(W)   the  preparation  of Issuer  Orders and the  obtaining  of  Opinions  of
      Counsel with respect to the  execution of  supplemental  indentures  and
      the  mailing  to  the  Noteholders  of  notices  with  respect  to  such
      supplemental indentures (Sections 9.01, 9.02 and 9.03);

(X)   the  execution of new Notes  conforming  to any  supplemental  indenture
      (Section 9.06);

(Y)   the   notification   of   Noteholders   of   redemption   of  the  Notes
      (Section 10.02);

(Z)   the preparation of all Officer's  Certificates,  Opinions of Counsel and
      Independent  Certificates  with  respect to any  requests by the Issuing
      Entity to the  Indenture  Trustee to take any action under the Indenture
      (Section 11.01(a));

(AA)  the  preparation  and  delivery  of  Officer's   Certificates   and  the
      obtaining of Independent Certificates,  if necessary, for the release of
      property from the lien of the Indenture (Section 11.01(b));

                                        4

(BB)  the  notification  of the  Rating  Agencies,  upon  the  failure  of the
      Indenture  Trustee  to  give  such  notification,   of  the  information
      required pursuant to Section 11.04 of the Indenture (Section 11.04);

(CC)  the preparation  and delivery to Noteholders  and the Indenture  Trustee
      of  any  agreements  with  respect  to  alternate   payment  and  notice
      provisions (Section 11.06);

(DD)  the recording of the Indenture, if applicable (Section 11.15); and

(EE)  causing the Servicer to comply with Sections 4.09,  4.10,  4.11 and 5.06
      of the Sale and Servicing Agreement.

(ii)  The Administrator will:

(A)   pay the Indenture Trustee from time to time reasonable  compensation for
      all  services  rendered by the  Indenture  Trustee  under the  Indenture
      (which  compensation  shall not be  limited by any  provision  of law in
      regard to the compensation of a trustee of an express trust);

(B)   except as otherwise  expressly provided in the Indenture,  reimburse the
      Indenture  Trustee  upon  its  request  for  all  reasonable   expenses,
      disbursements  and advances incurred or made by the Indenture Trustee in
      accordance   with  any  provision  of  the  Indenture   (including   the
      reasonable  compensation,  expenses and  disbursements of its agents and
      either in-house  counsel or outside counsel,  but not both),  except any
      such  expense,  disbursement  or advance as may be  attributable  to its
      negligence or bad faith;

(C)   indemnify  the  Indenture  Trustee and its agents for,  and to hold them
      harmless  against,  any losses,  liability or expense  incurred  without
      negligence  or bad faith on their part,  arising out of or in connection
      with the acceptance or administration  of the transactions  contemplated
      by the  Indenture,  including  the  reasonable  costs  and  expenses  of
      defending  themselves  against any claim or liability in connection with
      the exercise or  performance  of any of their powers or duties under the
      Indenture; and

(D)   indemnify  the  Owner  Trustee  and its  agents  for,  and to hold  them
      harmless  against,  any losses,  liability or expense  incurred  without
      negligence  or bad faith on their part,  arising out of or in connection
      with the acceptance or administration  of the transactions  contemplated
      by the Trust  Agreement,  including the reasonable costs and expenses of
      defending  themselves  against any claim or liability in connection with
      the exercise or  performance  of any of their powers or duties under the
      Trust Agreement.

(b)   Additional  Duties.  (i)  In addition to the duties of the Administrator
set forth above, the  Administrator  shall perform such calculations and shall
prepare  for  execution  by the Issuing  Entity or the Owner  Trustee or shall
cause the  preparation  by other  appropriate  persons of all such  documents,
reports,  filings,  instruments,  certificates and opinions as it shall be the
duty of the Issuing  Entity or the Owner  Trustee to prepare,  file or deliver
pursuant to the Related  Agreements,  and at the request of the Owner  Trustee
shall take all  appropriate  action that it is the duty of the Issuing  Entity
or the Owner  Trustee to take pursuant to the Related  Agreements.  Subject to

                                        5

Section 5 of this  Agreement,  and in  accordance  with the  directions of the
Owner Trustee,  the Administrator  shall administer,  perform or supervise the
performance  of such  other  activities  in  connection  with  the  Collateral
(including the Related  Agreements) as are not covered by any of the foregoing
provisions  and as are  expressly  requested  by the  Owner  Trustee  and  are
reasonably within the capability of the Administrator.

(ii)  Notwithstanding  anything in this Agreement or the Related Agreements to
the contrary,  the Administrator  shall be responsible for promptly  notifying
the Owner  Trustee  in the event  that any  withholding  tax is imposed on the
Issuing  Entity's  payments  (or  allocations  of  income)  to the  "Owner" as
contemplated in Section 5.02(c) of the Trust Agreement.  Any such notice shall
specify  the amount of any  withholding  tax  required  to be  withheld by the
Owner Trustee pursuant to such provision.

(iii) Notwithstanding  anything in this Agreement or the Related Agreements to
the contrary,  the  Administrator  shall be responsible for performance of the
duties of the Owner  Trustee set forth in Section 5.05 of the Trust  Agreement
with  respect  to,  among  other  things,   accounting   and  reports  to  the
Certificateholder.

(iv)  The  Administrator  may satisfy its obligations  with respect to clauses
(ii) and (iii)  above by  retaining,  at the expense of the  Administrator,  a
firm of independent public accountants (the  "Accountants")  acceptable to the
Owner  Trustee  which  shall  perform  the  obligations  of the  Administrator
thereunder.  In connection  with paragraph (ii) above,  the  Accountants  will
provide  prior to [Date] a letter in form and  substance  satisfactory  to the
Owner  Trustee as to whether  any tax  withholding  is then  required  and, if
required,  the  procedures to be followed with respect  thereto to comply with
the  requirements  of the Code.  The  Accountants  shall be required to update
the  letter  in  each  instance  that  any  additional   tax   withholding  is
subsequently  required or any  previously  required tax  withholding  shall no
longer be required.

(v)   The  Administrator   shall  perform  the  duties  of  the  Administrator
specified in Section 10.02 of the Trust Agreement  required to be performed in
connection  with the  resignation  or  removal of the Owner  Trustee,  and any
other duties  expressly  required to be performed by the  Administrator  under
the Trust Agreement.

(vi)  In carrying  out the  foregoing  duties or any of its other  obligations
under this Agreement,  the  Administrator  may enter into transactions with or
otherwise deal with any of its Affiliates;  provided,  however, that the terms
of  any  such  transactions  or  dealings  shall  be in  accordance  with  any
directions   received   from  the   Issuing   Entity  and  shall  be,  in  the
Administrator's  opinion,  no less  favorable to the Issuing Entity than would
be available from unaffiliated parties.

(vii) It is the intention of the parties hereto that the Administrator  shall,
and the  Administrator  hereby  agrees to,  execute  on behalf of the  Issuing
Entity  or  the  Owner   Trustee  all  such   documents,   reports,   filings,
instruments,  certificates and opinions as it shall be the duty of the Issuing
Entity or the Owner Trustee to prepare,  file or deliver pursuant to the Basic
Documents.  In  furtherance  thereof,  the Owner Trustee  shall,  on behalf of
itself and of the Issuing  Entity,  execute and deliver to the  Administrator,
and to each successor  Administrator  appointed  pursuant to the terms hereof,
one or more powers of attorney  substantially in the form of Exhibit A hereto,

                                        6

appointing the  Administrator  the  attorney-in-fact  of the Owner Trustee and
the  Issuing  Entity  for the  purpose  of  executing  on  behalf of the Owner
Trustee  and  the  Issuing  Entity  all  such  documents,   reports,  filings,
instruments, certificates and opinions.

(c)   Non-Ministerial  Matters.  (i)  With  respect  to  matters  that  in the
reasonable   judgment   of  the   Administrator   are   non-ministerial,   the
Administrator  shall  not take any  action  unless  within a  reasonable  time
before the taking of such action,  the  Administrator  shall have notified the
Owner  Trustee of the  proposed  action and the Owner  Trustee  shall not have
withheld consent or provided an alternative direction.  For the purpose of the
preceding   sentence,   "non-ministerial   matters"  shall  include,   without
limitation:

(A)   the amendment of or any supplement to the Indenture;

(B)   the  initiation  of any claim or lawsuit by the  Issuing  Entity and the
      compromise  of any  action,  claim or lawsuit  brought by or against the
      Issuing  Entity  (other than in  connection  with the  collection of the
      Receivables);

(C)   the amendment, change or modification of the Related Agreements;

(D)   the appointment of successor Note  Registrars,  successor  Paying Agents
      and  successor  Indenture  Trustees  pursuant  to the  Indenture  or the
      appointment of successor  Administrators or successor Servicers,  or the
      consent  to the  assignment  by the  Note  Registrar,  Paying  Agent  or
      Indenture Trustee of its obligations under the Indenture; and

(E)   the removal of the Indenture Trustee.

(ii)  Notwithstanding   anything  to  the  contrary  in  this  Agreement,  the
Administrator  shall not be obligated to, and shall not, (x) make any payments
to the Noteholders or the Certificateholder under the Related Agreements,  (y)
sell the Trust Estate  pursuant to Section  5.04 of the  Indenture or (z) take
any other  action that the Issuing  Entity  directs the  Administrator  not to
take on its behalf.

2.    Records.  The Administrator shall maintain  appropriate books of account
and records relating to services performed  hereunder,  which books of account
and records shall be accessible  for  inspection  by the Issuing  Entity,  the
Owner  Trustee,  the  Indenture  Trustee and the  Depositor at any time during
normal business hours.

3.    Compensation.    As   compensation    for   the   performance   of   the
Administrator's  obligations under this Agreement,  the Administrator shall be
entitled to  $[_________]  per month which shall be payable in accordance with
Section 5.04 of the Sale and Servicing  Agreement.  The  Depositor  shall also
reimburse the  Administrator  for any of its liabilities and expenses  related
to its  performance  hereunder  or  under  any  Related  Agreement  (including
without  limitation  those  expenses  set forth in  Section  1(a)(ii)  of this
Agreement).

                                        7

4.    Additional   Information  To  Be  Furnished  to  Issuing   Entity.   The
Administrator  shall  furnish  to the  Issuing  Entity  from time to time such
additional  information  regarding the  Collateral as the Issuing Entity shall
reasonably request.

5.    Independence of Administrator.  For all purposes of this Agreement,  the
Administrator  shall be an independent  contractor and shall not be subject to
the  supervision  of the Issuing  Entity or the Owner  Trustee with respect to
the  manner  in which  it  accomplishes  the  performance  of its  obligations
hereunder.   Unless   expressly   authorized  by  the  Issuing   Entity,   the
Administrator  shall have no  authority  to act for or  represent  the Issuing
Entity or the Owner  Trustee in any way and shall not  otherwise  be deemed an
agent of the Issuing Entity or the Owner Trustee.

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

7.    Other  Activities  of  Administrator.  Nothing  herein shall prevent the
Administrator  or its affiliates from engaging in other  businesses or, in its
sole discretion,  from acting in a similar  capacity as an  administrator  for
any other  person or entity  even  though  such person or entity may engage in
business  activities similar to those of the Issuing Entity, the Owner Trustee
or the Indenture Trustee.

8.    Term of Agreement;  Resignation and Removal of Administrator.  (a)  This
Agreement  shall  continue  in force  until  the  dissolution  of the  Issuing
Entity, upon which event this Agreement shall automatically terminate.

(b)   Subject  to  Section  8(e) and (f),  the  Administrator  may  resign its
duties  hereunder by providing the Issuing  Entity with at least 60 days prior
written notice.

(c)   Subject  to  Section  8(e) and (f),  the  Issuing  Entity may remove the
Administrator  without cause by providing the  Administrator  with at least 60
days prior written notice.

(d)   Subject  to  Section  8(e) and (f),  at the sole  option of the  Issuing
Entity,  the Administrator  may be removed  immediately upon written notice of
termination  from  the  Issuing  Entity  to  the  Administrator  if any of the
following events shall occur:

(i)   the Administrator  shall default in the performance of any of its duties
under this Agreement  and,  after notice of such default,  shall not cure such
default  within ten days (or,  if such  default  cannot be cured in such time,
shall not give within 10 days such  assurance  of cure as shall be  reasonably
satisfactory to the Issuing Entity);

(ii)  a court  having  jurisdiction  in the  premises  shall enter a decree or
order for relief,  and such decree or order shall not have been vacated within
60 days, in respect of the  Administrator  in any  involuntary  case under any
applicable  bankruptcy,  insolvency  or other  similar law now or hereafter in

                                        8

effect or  appoint  a  receiver,  liquidator,  assignee,  custodian,  trustee,
sequestrator  or similar  official for the  Administrator  or any  substantial
part of its property or order the winding-up or liquidation of its affairs; or

(iii) the  Administrator  shall commence a voluntary case under any applicable
bankruptcy,  insolvency or other similar law now or hereafter in effect, shall
consent to the entry of an order for relief in an  involuntary  case under any
such law,  or shall  consent to the  appointment  of a  receiver,  liquidator,
assignee,  trustee,  custodian,  sequestrator  or  similar  official  for  the
Administrator  or any substantial  part of its property,  shall consent to the
taking of  possession  by any such  official  of any  substantial  part of its
property,  shall make any general  assignment  for the benefit of creditors or
shall fail generally to pay its debts as they become due.

      The  Administrator  agrees that if any of the events specified in clause
(ii) or (iii) of this  Section  shall  occur,  it shall  give  written  notice
thereof to the Issuing  Entity and the  Indenture  Trustee  within  seven days
after the happening of such event.

(e)   No resignation or removal of the Administrator  pursuant to this Section
shall be  effective  until  (i) a  successor  Administrator  shall  have  been
appointed by the Issuing  Entity and (ii) such successor  Administrator  shall
have agreed in writing to be bound by the terms of this  Agreement in the same
manner as the Administrator is bound hereunder.

(f)   The appointment of any successor  Administrator  shall be effective only
after  satisfaction  of  the  Rating  Agency  Condition  with  respect  to the
proposed appointment.

9.    Action  upon  Termination,  Resignation  or Removal.  Promptly  upon the
effective date of  termination  of this Agreement  pursuant to Section 8(a) or
the  resignation or removal of the  Administrator  pursuant to Section 8(b) or
(c),  respectively,  the  Administrator  shall be entitled to be paid all fees
and  reimbursable  expenses  accruing  to it to the date of such  termination,
resignation  or  removal.   The   Administrator   shall  forthwith  upon  such
termination  pursuant  to  Section  8(a)  deliver  to the  Issuing  Entity all
property and  documents of or relating to the  Collateral  then in the custody
of the  Administrator.  In the  event of the  resignation  or  removal  of the
Administrator   pursuant   to   Section   8(b)  or  (c),   respectively,   the
Administrator  shall cooperate with the Issuing Entity and take all reasonable
steps requested to assist the Issuing Entity in making an orderly  transfer of
the duties of the Administrator.

10.   Notices.  Any  notice,  report or other  communication  given  hereunder
shall be in writing and addressed as follows:

(a)   if to the Issuing Entity or the Owner Trustee, to

                  CATERPILLAR FINANCIAL ASSET TRUST 200[_]-[_]
                  [Name of Owner Trustee]
                  [Address]
                  Attention:  [____]

                                        9

(b)   if to the Administrator, to

                  Caterpillar Financial Services Corporation
                  2120 West End Avenue
                  Nashville, TN  37203-0001

(c)   if to the Indenture Trustee, to

                  [Name of Indenture Trustee]
                  [Address]

(d)   if to the Depositor, to

                  Caterpillar Financial Funding Corporation
                  4040 S. Eastern Avenue
                  Suite 344
                  Las Vegas, Nevada  89119

or to such  other  address  as any  party  shall  have  provided  to the other
parties in writing.  Any notice  required to be in writing  hereunder shall be
deemed given if such notice is mailed by certified mail,  postage prepaid,  or
hand-delivered  to the  address of such party as provided  above,  except that
notices to the Indenture Trustee are effective only upon receipt.

11.   Amendments.  This  Agreement may be amended,  with prior written  notice
to the  Rating  Agencies,  from  time  to  time by a  written  amendment  duly
executed  and  delivered  by the Issuing  Entity,  the  Administrator  and the
Indenture Trustee, with the written consent of the Owner Trustee,  without the
consent  of the  Noteholders  and the  Certificateholder,  for the  purpose of
adding any provisions to or changing in any manner or  eliminating  any of the
provisions  of this  Agreement or of modifying in any manner the rights of the
Noteholders or the Certificateholder;  provided,  however, that such amendment
will not, in the  Opinion of  Counsel,  materially  and  adversely  affect the
interest  of any  Noteholder  or the  Certificateholder  or  the  federal  tax
characterization  of the  Notes.  This  Agreement  may also be  amended,  with
prior  written  notice to the Rating  Agencies,  by the  Issuing  Entity,  the
Administrator  and the Indenture Trustee with the written consent of the Owner
Trustee and the  holders of Notes  evidencing  a majority  in the  Outstanding
Amount of the  Notes and the  holder of the  Certificate  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
Noteholders  or  the  Certificateholder;   provided,  however,  that  no  such
amendment  may (i)  increase  or  reduce  in any  manner  the  amount  of,  or
accelerate or delay the timing of,  collections  of payments on Receivables or
distributions  that are required to be made for the benefit of the Noteholders
or the  Certificateholder  or (ii)  reduce  the  aforesaid  percentage  of the
holders  of Notes and the  holder of the  Certificate  which are  required  to
consent to any such  amendment,  without the consent of the holders of all the
outstanding  Notes and the  Certificate.  Notwithstanding  the foregoing,  the
Administrator  may not amend this  Agreement  without  the  permission  of the
Depositor, which permission shall not be unreasonably withheld.

12.   Successors  and  Assigns.  This  Agreement  may not be  assigned  by the
Administrator  unless such assignment is previously consented to in writing by

                                        10

the Issuing  Entity and the Owner Trustee and subject to the  satisfaction  of
the Rating  Agency  Condition  in respect  thereof.  An  assignment  with such
consent  and  satisfaction,  if  accepted  by the  assignee,  shall  bind  the
assignee   hereunder  in  the  same  manner  as  the  Administrator  is  bound
hereunder.  Notwithstanding  the foregoing,  this Agreement may be assigned by
the  Administrator  without  the  consent of the  Issuing  Entity or the Owner
Trustee  to a  corporation  or  other  organization  that is a  successor  (by
merger,  consolidation or purchase of assets) to the  Administrator,  provided
that such successor  organization executes and delivers to the Issuing Entity,
the Owner  Trustee  and the  Indenture  Trustee  an  agreement  in which  such
corporation or other  organization  agrees to be bound  hereunder by the terms
of  said  assignment  in  the  same  manner  as  the  Administrator  is  bound
hereunder.   Subject  to  the  foregoing,   this  Agreement   shall  bind  any
successors or assigns of the parties hereto.

13.   GOVERNING  LAW. THIS  AGREEMENT  SHALL BE CONSTRUED IN  ACCORDANCE  WITH
THE LAWS OF THE STATE OF NEW YORK,  WITHOUT  REFERENCE  TO ITS CONFLICT OF LAW
PROVISIONS  (OTHER  THAN  SECTIONS  5-1401 AND 5-1402 OF THE NEW YORK  GENERAL
OBLIGATIONS  LAW) AND THE  OBLIGATIONS,  RIGHTS AND  REMEDIES  OF THE  PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

14.   Headings.   The  section   headings   hereof  have  been   inserted  for
convenience  of  reference  only and shall  not be  construed  to  affect  the
meaning, construction or effect of this Agreement.

15.   Counterparts.  This Agreement may be executed in  counterparts,  each of
which  when so  executed  shall  together  constitute  but  one  and the  same
agreement.

16.   Severability.  Any  provision of this  Agreement  that is  prohibited or
unenforceable in any  jurisdiction  shall 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.

17.   Not Applicable to Caterpillar  Financial Services  Corporation in Other
Capacities.   Nothing  in  this   Agreement   shall   affect  any   obligation
Caterpillar Financial Services Corporation may have in any other capacity.

18.   Limitation of Liability of Owner Trustee and Indenture Trustee.

(a)   Notwithstanding   anything  contained  herein  to  the  contrary,   this
instrument  has been signed by [Name of Owner  Trustee] not in its  individual
capacity  but solely in its  capacity as Owner  Trustee of the Issuing  Entity
and in no event shall [Name of Owner  Trustee] in its  individual  capacity or
any  beneficial  owner  of the  Issuing  Entity  have  any  liability  for the
representations,  warranties,  covenants,  agreements or other  obligations of
the Issuing Entity hereunder,  as to all of which recourse shall be had solely
to the assets of the Issuing Entity.  For all purposes of this  Agreement,  in
the performance of any duties or obligations of the Issuing Entity  hereunder,
the Owner  Trustee  shall be subject to, and  entitled to the benefits of, the
terms and provisions of Articles VI, VII and VIII of the Trust Agreement.

                                        11

(b)   Notwithstanding   anything  contained  herein  to  the  contrary,   this
Agreement  has  been  signed  by  [Name  of  Indenture  Trustee]  not  in  its
individual  capacity  but solely as  Indenture  Trustee  and in no event shall
[Name of  Indenture  Trustee]  have  any  liability  for the  representations,
warranties,  covenants,  agreements or other obligations of the Issuing Entity
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 Issuing Entity.

19.   Third-Party   Beneficiary.   The   Owner   Trustee   is  a   third-party
beneficiary  to this  Agreement  and is  entitled  to the rights and  benefits
hereunder and may enforce the provisions hereof as if it were a party hereto.

20.   Successor   Servicer  and   Administrator.   The   Administrator   shall
undertake,  as promptly as possible  after the giving of notice of termination
to the Servicer of the Servicer's  rights and powers  pursuant to Section 8.02
of the Sale and  Servicing  Agreement,  to enforce the  provisions of Section
8.02 with respect to the appointment of a successor  Servicer.  Such successor
Servicer shall,  upon compliance with the last sentence of the first paragraph
of Section  8.02 of the Sale and  Servicing  Agreement,  become the  successor
Administrator  hereunder;  provided,  however,  that if the Indenture  Trustee
shall become such successor Administrator,  the Indenture Trustee shall not be
required to perform any  obligations  or duties or conduct any  activities  as
successor  Administrator  that would be  prohibited  by law and not within the
banking  and  trust  powers  of the  Indenture  Trustee.  In such  event,  the
Indenture   Trustee  shall  appoint  a   sub-administrator   to  perform  such
obligations and duties.

21.   Nonpetition Covenants.

(a)   Notwithstanding any prior termination of this Agreement,  the Depositor,
the  Administrator,  the Owner  Trustee and the  Indenture  Trustee shall not,
prior to the date which is one year and one day after the  termination of this
Agreement  with  respect  to  the  Issuing  Entity,  acquiesce,   petition  or
otherwise  invoke or cause the  Issuing  Entity to invoke  the  process of any
court or  government  authority  for the purpose of commencing or sustaining a
case  against  the  Issuing  Entity  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 Issuing
Entity or any substantial part of its property,  or ordering the winding up or
liquidation of the affairs of the Issuing Entity.

(b)   Notwithstanding  any prior  termination of this  Agreement,  the Issuing
Entity, the  Administrator,  the Owner Trustee and the Indenture Trustee shall
not, prior to the date which is one year and one day after the  termination of
this  Agreement  with  respect  to  the  Depositor,   acquiesce,  petition  or
otherwise  invoke or cause the Depositor to invoke the process of any court or
government  authority  for the  purpose of  commencing  or  sustaining  a case
against the  Depositor  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  Depositor or any
substantial  part of its property,  or ordering the winding up or  liquidation
of the affairs of the Depositor.

                           [Signature Page Follows]

                                        12

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

                                 CATERPILLAR FINANCIAL ASSET
                                    TRUST 200[_]-[_]

                                 By:  [Name of Owner Trustee], not in its
                                      individual capacity but solely as Owner
                                      Trustee

                                 By:___________________________________________
                                      Name:
                                      Title:

                                 [NAME OF INDENTURE TRUSTEE],
                                      not in its individual capacity
                                      but solely as Indenture Trustee

                                 By:___________________________________________
                                      Name:
                                      Title:

                                 CATERPILLAR FINANCIAL SERVICES CORPORATION,
                                    as Administrator

                                 By:___________________________________________
                                      Name:
                                      Title:

                                 CATERPILLAR FINANCIAL FUNDING CORPORATION,
                                    as Depositor

                                 By:___________________________________________
                                      Name:
                                      Title:

                                                                     EXHIBIT A
                                                   [Form of Power of Attorney]

                              POWER OF ATTORNEY

STATE OF ____________         )
                              )
COUNTY OF __________          )

      KNOW  ALL  MEN  BY  THESE  PRESENTS,  that   ______________________,   a
____________________________,  not in its  individual  capacity  but solely as
owner trustee  ("Owner  Trustee") for the  CATERPILLAR  FINANCIAL  ASSET TRUST
200[_]-[_]    ("Trust"),    does   hereby   make,   constitute   and   appoint
____________________________,   as  Administrator   under  the  Administration
Agreement   (as   defined   below),   and  its   agents  and   attorneys,   as
Attorneys-in-Fact  to  execute on behalf of the Owner  Trustee or the  Issuing
Entity all such documents,  reports,  filings,  instruments,  certificates and
opinions as it shall be the duty of the Owner  Trustee or the  Issuing  Entity
to prepare,  file or deliver pursuant to the Related Agreements (as defined in
the Administration  Agreement),  including,  without limitation, to appear for
and represent the Owner Trustee and the Issuing Entity in connection  with the
preparation,  filing  and  audit of  federal,  state  and  local  tax  returns
pertaining to the Issuing  Entity,  and with full power to perform any and all
acts  associated  with such  returns and audits that the Owner  Trustee  could
perform,  including  without  limitation,  the right to distribute and receive
confidential  information,  defend and assert positions in response to audits,
initiate  and defend  litigation,  and to execute  waivers of  restriction  on
assessments  of  deficiencies,  consents to the  extension of any statutory or
regulatory  time  limit,  and  settlements.  For the  purpose of this Power of
Attorney,  the  term  "Administration   Agreement"  means  the  Administration
Agreement,  dated  as  of  [Date],  among  the  Trust,  Caterpillar  Financial
Services   Corporation,   as  Administrator,   Caterpillar  Financial  Funding
Corporation,  as  depositor,  and [Name of  Indenture  Trustee],  as Indenture
Trustee, as amended, modified or supplemented from time to time.

      All powers of attorney for this purpose  heretofore filed or executed by
the Owner Trustee are hereby revoked.

      EXECUTED this [___] day of [__], 20[__].

                                 [Name of Owner Trustee], not in its
                                      individual capacity but solely as Owner
                                      Trustee,

                                 By:___________________________________________
                                      Name:
                                      Title:Exhibit 10.3

                             CUSTODIAL AGREEMENT

                                    among

                  CATERPILLAR FINANCIAL SERVICES CORPORATION

                           Originator and Servicer

                  CATERPILLAR FINANCIAL FUNDING CORPORATION

                                  Depositor

                 CATERPILLAR FINANCIAL ASSET TRUST 200[_]-[_]

                                    Issuer

                                     and

                                    [NAME]

                       Indenture Trustee and Custodian

                              Dated as of [Date]

                                      TABLE OF CONTENTS

                                                                            Page

ARTICLE I      DEFINITIONS.....................................................2

        Section 1.1.  Definitions..............................................2

        Section 1.2.  Interpretation of the Agreement..........................2

ARTICLE II     CUSTODIAL ARRANGEMENT.......................................... 2

        Section 2.1.  Appointment as Custodian.................................3

        Section 2.2.  Maintenance of Office....................................3

ARTICLE III    CUSTODIAL ARRANGEMENT...........................................3

        Section 3.1.  Transfer of Receivables; Delivery of Documents...........3

        Section 3.2.  Certification............................................4

        Section 3.3.  Release of Receivable Files..............................4

        Section 3.4.  Purchase; Payment In Full................................5

        Section 3.5.  Other Duties of Custodian................................5

        Section 3.6.  Access to Records........................................5

        Section 3.7.  Instructions; Authority to Act...........................6

ARTICLE IV     OWNERSHIP AND TRANSFER OF RECEIVABLES...........................6

        Section 4.1.  Transfer of Receivables..................................6

        Section 4.2.  Substitution and Purchase of Receivables.................6

        Section 4.3.  No Service Charge for Transfer of Receivables............7

        Section 4.4.  Defeasance...............................................7

ARTICLE V      CUSTODIAN.......................................................7

        Section 5.1.  Representations, Warranties and Covenants of Custodian...7

        Section 5.2.  Charges and Expenses.....................................8

        Section 5.3.  No Adverse Interests.....................................9

        Section 5.4.  Inspections..............................................9

        Section 5.5.  Insurance................................................9

        Section 5.6.  Limitation of Liability..................................9

        Section 5.7.  Indemnification.........................................10

        Section 5.8.  Further Rights of Custodian.............................10

                                        i

ARTICLE VI     MISCELLANEOUS PROVISIONS.......................................11

        Section 6.1.  Amendment...............................................11

        Section 6.2.  Governing Law...........................................11

        Section 6.3.  Notices.................................................11

        Section 6.4.  Severability of Provisions..............................11

        Section 6.5.  No Partnership..........................................11

        Section 6.6.  Termination of Agreement................................12

        Section 6.7.  Counterparts............................................12

        Section 6.8.  Assignment..............................................12

        Section 6.9.  Headings................................................12

        Section 6.10. Advice of Counsel.......................................12

        Section 6.11. No Petition.............................................12

        Section 6.12. Resignation of Custodian................................12

        Section 6.13. Limitation of Liability of Indenture Trustee and
                      Owner Trustee...........................................13

ARTICLE VII    REGULATION AB COMPLIANCE.......................................13

        Section 7.1.  Additional Representations and Warranties of
                      the Custodian...........................................13

        Section 7.2.  Additional Representations and Warranties of
                      the Custodian...........................................14

        Section 7.3.  Report on Assesment of Compliance and Attestation.......14

        Section 7.4.  Indemnification; Remedies...............................15

EXHIBIT A      CUSTODIAN CERTIFICATION.......................................A-1

EXHIBIT B      REQUEST FOR RELEASE OF DOCUMENTS..............................B-1

EXHIBIT C      TRANSFER CERTIFICATE..........................................C-1

                                        ii

                         FORM OF CUSTODIAL AGREEMENT

            THIS  CUSTODIAL  AGREEMENT  is  made  as of  [Date]  (as  amended,
modified or supplemented  from time to time, this  "Agreement"),  by and among
CATERPILLAR  FINANCIAL  SERVICES  CORPORATION,  as originator  and as servicer
(the  "Originator" and the "Servicer",  respectively),  CATERPILLAR  FINANCIAL
FUNDING  CORPORATION,  as depositor (the "Depositor"),  CATERPILLAR  FINANCIAL
ASSET TRUST  200[_]-[__]  (the  "Issuing  Entity"),  [NAME],  as trustee  (the
"Indenture Trustee"), and [NAME], as custodian (the "Custodian").

                                   RECITALS

            WHEREAS,  before the Closing Date the  Originator  is the owner of
the Receivables;

            WHEREAS,  pursuant to the Purchase Agreement,  the Originator will
sell the Receivables to the Depositor;

            WHEREAS,  pursuant  to  the  Sale  and  Servicing  Agreement,  the
Depositor  will  sell  the  Receivables  acquired  pursuant  to  the  Purchase
Agreement to the Issuing Entity;

            WHEREAS,  pursuant to the Indenture, the Issuing Entity will Grant
to the Indenture Trustee,  as trustee all of the Issuing Entity's right, title
and  interest  in, to and under the  Receivables  and the other  assets of the
Issuing Entity;

            WHEREAS,  during such time as the Originator,  the Depositor,  the
Issuing  Entity  or the  Indenture  Trustee  owns  or has an  interest  in the
Receivables,  such  Person  or  Persons  shall be  referred  to  herein as the
"Receivables  Holder," and the Custodian  shall hold all  Receivables  for the
benefit  of  the  Originator,  the  Depositor,  the  Issuing  Entity  and  the
Indenture Trustee during such time as such Person is a Receivables Holder;

            WHEREAS,  in connection  with the  foregoing,  the parties  hereto
desire  to  provide  for  the  custody  and  management  of  the   Receivables
transferred  pursuant  to the  Purchase  Agreement,  the  Sale  and  Servicing
Agreement and the Indenture (each, a "Transfer");

            WHEREAS,  the  Custodian is a financial  institution  regulated by
the Comptroller of the Currency of the United States;

            WHEREAS,  the  Originator,  the Depositor,  the Issuing Entity and
the Indenture  Trustee,  during such time as each such Person is a Receivables
Holder,  desire to have the Custodian  (i) hold the  Receivables  as custodian
for each such party,  (ii) take possession of the Contracts and the Receivable
Files  related  to  the  Receivables,   along  with  certain  other  documents
specified  in this  Agreement,  as the  custodian  for,  and bailee  of,  such
Receivables  Holder  in  accordance  with the  terms  and  conditions  of this
Agreement,  and (iii) retain  possession of the Contracts and Receivable Files
and  such  other  documents  as  custodian  for and  bailee  of the  Indenture
Trustee;  and the  Custodian  is willing  and able to  perform  the duties and
obligations of a custodian and bailee as set forth herein; and

            WHEREAS,  the  Servicer  will act as servicer  of the  Receivables
pursuant to the Sale and Servicing Agreement.

            NOW,  THEREFORE,  in  consideration of the premises and the mutual
agreements   hereinafter  set  forth,  the  Originator,   the  Servicer,   the
Depositor,  the Issuing Entity, the Indenture Trustee and the Custodian hereby
agree as follows:

                                  ARTICLE I

                                 DEFINITIONS

Section 1.1.      Definitions.   Certain   capitalized   terms  used  in  this
Agreement and not otherwise defined herein shall have the respective  meanings
assigned  them in the Sale and  Servicing  Agreement,  dated as of [Date]  (as
amended,  modified or supplemented  from time to time, the "Sale and Servicing
Agreement"),  among the Issuing  Entity,  the Depositor and the Servicer or in
the Indenture,  dated as of [Date] (as amended,  modified or supplemented from
time to time, the  "Indenture"),  between the Issuing Entity and the Indenture
Trustee. All references in this Agreement to Articles,  Sections,  Subsections
and  Exhibits  are to the same  contained  in or  attached  to this  Agreement
unless  otherwise  specified.  All terms defined in this Agreement  shall have
the defined  meanings when used in any  certificate,  notice or other document
made or delivered  pursuant hereto unless otherwise  defined therein.  As used
in this  Agreement and in any  certificate or other document made or delivered
pursuant hereto or thereto,  accounting terms not defined in this Agreement or
in any such  certificate  or  other  document,  and  accounting  terms  partly
defined in this Agreement or in any such  certificate or other document to the
extent not defined,  shall have the  respective  meanings  given to them under
generally accepted accounting  principles.  To the extent that the definitions
of  accounting  terms in this  Agreement or in any such  certificate  or other
document  are  inconsistent  with the  meanings of such terms under  generally
accepted accounting  principles,  the definitions  contained in this Agreement
or in any  such  certificate  or  other  document  shall  control.  The  words
"hereof,"  "herein,"  "hereunder,"  and words of similar  import  when used in
this  Agreement  shall  refer  to this  Agreement  as a  whole  and not to any
particular  provision  of this  Agreement;  the term  "including"  shall  mean
"including  without  limitation";  and the  term  "or" is not  exclusive.  The
definitions  contained in this  Agreement  are  applicable  to the singular as
well as the plural forms of such terms and to the  masculine as well as to the
feminine and neuter genders of such terms.

Section 1.2.      Interpretation   of  the  Agreement.   In  interpreting  any
mistake or ambiguity  contained  herein,  the parties  hereto agree to resolve
any such mistakes or ambiguities in favor of the Indenture Trustee.

                                 ARTICLE II

                            CUSTODIAL ARRANGEMENT

Section 2.1.      Appointment   as   Custodian.   Subject  to  the  terms  and
conditions  hereof,  the  Depositor,  the  Issuing  Entity  and the  Indenture
Trustee,  as their  interests may appear,  hereby appoint [Name of Custodian],

                                        2

and [Name of  Custodian]  hereby  accepts  such  appointment,  as Custodian to
maintain  custody of the  Receivables,  the Contracts and the Receivable Files
during such time as each such Person is a Receivables Holder.

Section 2.2.      Maintenance  of Office.  The  Custodian  agrees to  maintain
each  Receivable  File  identified in  Section 3.03  of the Sale and Servicing
Agreement and Section 2.04 of the Purchase  Agreement at its office located at
[address of  Custodian],  or at such of its other offices in [__] as Custodian
shall designate from time to time after giving the Originator,  the Depositor,
the Issuing  Entity,  each of the Rating  Agencies and the  Indenture  Trustee
prior  written  notice,  which office shall be  maintained  separate  from the
offices of the Originator,  the Depositor and the Servicer and shall be at all
times under the exclusive  dominion of the Custodian.  None of the Custodian's
employees  shall be employees of the Originator,  the Depositor,  the Servicer
or any of the Servicer's Affiliates.

                                 ARTICLE III

                            CUSTODIAL ARRANGEMENT

Section 3.1.      Transfer of  Receivables;  Delivery of Documents.  Within 30
days of the  Closing  Date,  the  Originator  shall  deliver,  or  cause to be
delivered,  to the  Custodian,  the Receivable  Files,  including the Original
Contract evidencing each Receivable.

            On the date on which the Originator  delivers the Receivable Files
to the Custodian (the "Delivery  Date"),  the Originator  shall deliver to the
Custodian  a  transfer  certificate  in  form  of  Exhibit  C  (a  "Transfer
Certificate"),   acknowledging  the  Transfer  of  the  Receivables  from  the
Originator  to the  Depositor  pursuant to the  Purchase  Agreement.  Upon its
receipt of such Transfer  Certificate,  the Custodian shall  acknowledge  such
Transfer  Certificate  (as provided  thereon)  and deliver to the  Depositor a
Custodian  Certification  (as  defined  in  Section  3.2) (the  "Depositor's
Custodian  Certification")  certifying that it is holding the Receivable Files
delivered to it by the Originator on behalf of the Depositor.

            Upon  receipt  of the  Depositor's  Custodian  Certification,  the
Depositor shall deliver to the Custodian a Transfer Certificate  acknowledging
the  Transfer of the  Receivables  from the  Depositor  to the Issuing  Entity
pursuant  to the Sale  and  Servicing  Agreement.  Upon  its  receipt  of such
Transfer   Certificate,   the  Custodian  shall   acknowledge   such  Transfer
Certificate as provided  thereon and deliver to the Issuing Entity a Custodian
Certification  (the "Issuing  Entity's  Custodian  Certification")  certifying
that it is holding the Receivable  Files  delivered to it by the Originator on
behalf of the Issuing Entity.

            Upon receipt of the Issuing Entity's Custodian Certification,  the
Issuing  Entity  shall  deliver  to  the  Custodian  a  Transfer   Certificate
acknowledging  the Transfer of the Receivables  from the Issuing Entity to the
Indenture  Trustee  pursuant  to the  Indenture.  Upon  its  receipt  of  such
Transfer   Certificate,   the  Custodian  shall   acknowledge   such  Transfer
Certificate  as  provided  thereon  and  deliver  to the  Indenture  Trustee a
Custodian Certification (the "Trustee's Custodian  Certification")  certifying
that it is holding the Receivable  Files  delivered to it by the Originator on
behalf of the Indenture Trustee.

                                        3

            Custodian hereby  acknowledges  receipt of the Purchase Agreement,
the  Sale  and  Servicing  Agreement  and  the  Indenture.  Custodian  further
acknowledges  that, on the Delivery Date and pursuant to this  Agreement,  the
Purchase  Agreement,  the  Sale and  Servicing  Agreement  and the  Indenture,
Custodian  will be given  possession of the  Receivable  Files relating to the
Receivables   constituting  a  portion  of  the  Collateral,   each  of  which
Receivables  will  be  described  specifically  on  Schedule  A to each of the
Purchase Agreement and the Sale and Servicing Agreement,  a copy of which will
be delivered to Custodian  simultaneously  with the delivery of the Receivable
Files relating  thereto.  On and after the Delivery Date and the completion of
the Transfers  described  above, and so long as this Agreement shall remain in
effect,  Custodian shall hold the Receivable  Files now and  thereafter,  from
time to time,  in its sole custody and control as custodian  for and bailee of
the Indenture Trustee, as trustee,  unless and until released from the lien of
the  Indenture  and  otherwise  in  accordance  with the  Sale  and  Servicing
Agreement,  in which  event,  Custodian  shall  hold the  Receivables  and the
Receivable  Files as  trustee  and bailee  for the  benefit of the  applicable
Receivables Holder.

Section 3.2.      Certification.  Custodian  shall hold all  documents in each
Receivable  File  on  behalf  of  the  Indenture   Trustee  pursuant  to  this
Agreement.  Upon  consummation  of a Transfer in accordance with terms hereof,
Custodian shall, with respect to the Receivables  transferred to a Receivables
Holder in  connection  with a  Transfer,  number,  execute  and deliver to the
applicable  Receivables  Holder  (with  a copy  to the  Servicer)  one or more
certifications  (each,  a "Custodian  Certification")  in the form attached as
Exhibit A.  Upon  issuance of a Custodian  Certification  with  respect to any
Transfer,  the Custodian  Certification relating to such Receivable previously
delivered  shall  be  deemed  and  marked   cancelled  with  respect  to  such
Receivable.

Section 3.3.      Release  of  Receivable  Files.  From  time to  time  and as
provided in the Sale and Servicing Agreement,  Custodian is hereby authorized,
upon written request of Servicer (with the approval of the Indenture  Trustee,
which  approval  shall not be  unreasonably  withheld)  in the form annexed as
Exhibit B,  to release to the  Servicer  the  Receivable  File  related to any
Receivable  or the  specific  documents  identified  in  such  request  to the
Servicer.  All  documents so released to the  Servicer  shall be held by it in
trust for the benefit of the  Indenture  Trustee.  Servicer  shall  return the
Receivable  File,  or  such  other  documents  which  have  been  released  to
Servicer,  to Custodian  when  Servicer's  need therefor in connection  with a
foreclosure,  modification,  termination  or  repossession  no longer  exists,
unless the  Receivable  shall be  satisfied  in full or  liquidated,  in which
case,  upon  receipt  of a  certification  to such  effect  from  Servicer  to
Custodian in the form annexed as Exhibit B,  the related Receivable File shall
be released by Custodian to Servicer,  and Custodian shall  thereupon  reflect
any such  liquidation on the related  Receivable.  Pursuant to Section 4.07 of
the Sale and Servicing  Agreement,  (i) the Servicer shall return a Receivable
File  released to it within  five  Business  Days of such  release and (ii) if
such Receivable  File has not been returned to the Custodian  within such five
Business Day period, the Servicer shall repurchase the related Receivable.

            Notwithstanding  anything herein or in any other Basic Document to
the contrary,  (i) the  Servicer shall return any Receivable  File released to
it in  connection  with a  modification  or extension  of a Receivable  to the
Custodian on the same day such file is released and (ii) the  Custodian  shall
not  release  a  Receivable   File  to  the  Servicer  in  connection  with  a
modification  or  extension of a  Receivable  if,  after giving  effect to the

                                        4

release  of such  Receivable  File,  the  aggregate  Principal  Balance of all
Receivables having released  Receivable Files in connection with modifications
and extensions exceeds $[_________].

Section 3.4.      Purchase;   Payment  In  Full.  Upon  the  purchase  of  any
Receivable  pursuant to  Section 3.02,  3.05 or 4.07 of the Sale and Servicing
Agreement or  Section 6.02 of the Purchase  Agreement,  or upon the payment in
full of any  Receivable,  which shall be evidenced by  Custodian's  receipt of
the request for release in the form  annexed  hereto as  Exhibit B,  Custodian
shall  promptly  release  the  related  Receivable  File to  Servicer  and the
security  interest in such  Receivable and related  Receivable File granted by
the Issuing Entity to the Indenture  Trustee  pursuant to the Indenture  shall
terminate  without any further action by the Custodian,  the  Originator,  the
Depositor or the Indenture Trustee.

Section 3.5.      Other  Duties of  Custodian.  The  Custodian  shall have and
perform the other following powers and duties:

(a)         Safekeeping.  To segregate the  Receivables  and Receivable  Files
      from all other  receivables,  leases and installment  sale contracts and
      similar records in its possession,  to identify the Receivable  Files as
      being  held and to hold the  Receivable  Files  for and on behalf of the
      Receivables  Holders  (which,  on and after the Delivery Date,  shall be
      the Indenture Trustee),  to maintain accurate records pertaining to each
      Contract and Receivable in the Receivable  Files,  to provide  monthly a
      list  of all  Receivable  Files  held  by it,  together  with a  current
      exception  report,  and to provide such  information  as is necessary to
      enable the  Servicer to deliver the reports and  notifications  required
      by  Section 4.09  of the Sale and Servicing  Agreement.  Custodian  will
      promptly  report to the  Indenture  Trustee  any  failure on its part to
      hold  the  Receivable   Files  as  herein  provided  and  promptly  take
      appropriate action to remedy any such failure.

(b)         Administration;   Reports.   In   general,   to   attend   to  all
      non-discretionary  details in connection with maintaining custody of the
      Receivable  Files  on  behalf  of  the  Receivables  Holders  as  may be
      expressly  provided  herein or as may be  required  or  customary  for a
      custodian or bailee.  In addition,  Custodian shall assist the Indenture
      Trustee  and  the  Servicer  (at  Servicer's   cost)  generally  in  the
      preparation of reports to holders or to regulatory  bodies to the extent
      necessitated by Custodian's custody of the Receivable Files.

Section 3.6.      Access to  Records.  Custodian  shall  permit the  Indenture
Trustee and its duly authorized  agents,  attorneys or auditors to inspect the
Receivable  Files  and the  books  and  records  maintained  by the  Custodian
pursuant  hereto  at such  reasonable  times as they may  reasonably  request,
subject only to compliance with the terms of the Sale and Servicing Agreement.

Section 3.7.      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  Indenture   Trustee  and  may  conclusively   rely  on  such
instructions.  In  addition,  the  Custodian  may  conclusively  rely upon any
release  request  delivered  to it in the  form  attached  as  Exhibit B  duly

                                        5

executed by an  authorized  officer of the Servicer as set forth on Annex 1 to
Exhibit B and, if required by the terms thereof, by the Indenture Trustee.

                                   ARTICLE IV

                    OWNERSHIP AND TRANSFER OF RECEIVABLES

Section 4.1.      Transfer of  Receivables.  The  delivery of  Receivables  in
connection with any Transfer shall occur in the following manner:

(i)   Upon  receipt  of a  Transfer  Certificate,  Custodian  shall  deliver a
            Custodian   Certification   certifying  that  it  is  holding  the
            Receivable  Files  delivered  to it on  behalf  of the  transferee
            referred to in such Transfer Certificate;

(ii)  Custodian  shall  within 15 days of its  receipt of the  delivery of the
            Receivable Files:

(a)   determine  whether  each  Receivable  File  listed  on the  Schedule  of
                  Receivables  has been  delivered to  Custodian,  and whether
                  Custodian  is  able to  deliver  a  Custodian  Certification
                  certifying that it is in possession of each Receivable File;

(b)   promptly  advise  the  applicable   Receivables  Holder,  the  Indenture
                  Trustee,  the  Originator,  the Servicer,  the Depositor and
                  each of the Rating  Agencies by  telephone  or by  facsimile
                  transmission  if it  determines  that  any  Receivable  File
                  referred  to in clause  (a) above has not been so  delivered
                  and take no further action under this  Section 4.1  until it
                  determines  that such Receivable File has been so delivered;
                  and

(c)   upon  determining  that  such  Receivable  File has  been so  delivered,
                  Custodian shall issue and deliver to applicable  Receivables
                  Holder a Custodian  Certification  certifying  that it is in
                  possession of each Receivable File.

Section 4.2.      Substitution  and Purchase of  Receivables.  The purchase of
Receivables   pursuant  to   Section 6.02   of  the  Purchase   Agreement  and
Section 3.02,  Section 3.05(b)  or  Section 4.07  of the  Sale  and  Servicing
Agreement shall occur in the following manner:

(i)   On or before  the date of such  purchase,  the  Servicer  shall send the
            Indenture  Trustee  notice,  with a copy to Custodian,  indicating
            the Receivables to be purchased and the aggregate  purchase prices
            to be paid on such date.

(ii)  Upon receiving  written  confirmation  in the form annexed as Exhibit B,
            from the Depositor and the Issuing  Entity that they have received
            the  applicable  Purchase  Amount,  Custodian  shall return to the
            applicable  party (as identified to the Custodian by the Indenture
            Trustee) Receivable Files related to the Receivables  purchased on
            such date.

                                        6

Section 4.3.      No Service  Charge for Transfer of  Receivables.  No service
charge  shall be made for any  transfer  of  Receivables,  but  Custodian  may
require  payment  from the  relevant  transferor  (other  than  the  Indenture
Trustee) of a sum sufficient to cover any tax or governmental  charge that may
be imposed in connection with any transfer of Receivables.

Section 4.4.      Defeasance.   When  a   Receivable   is   purchased  by  the
Servicer,  the  Depositor  or the  Originator  pursuant  to the  terms  of the
Purchase  Agreement  and the  Sale and  Servicing  Agreement,  the  applicable
Receivables  Holder's  interest in such  Receivable  and all  Collateral  with
respect to such  Receivable  shall  terminate,  such  Receivable  and  related
Collateral   shall  be  conveyed  to  the  Servicer,   the  Depositor  or  the
Originator,  as applicable,  and the Receivables  Holder's  rights,  title and
interest  therein shall cease,  and the  Indenture  Trustee shall execute such
instruments  acknowledging  termination  and  discharge  of  such  pledge  and
security interest as are required by applicable law.

                                  ARTICLE V

                                  CUSTODIAN

Section 5.1.      Representations,  Warranties  and  Covenants  of  Custodian.
Custodian  hereby   represents  and  warrants  to,  and  covenants  with,  the
Originator,  the Depositor, the Servicer, the Issuing Entity and the Indenture
Trustee, that as of the date of each Custodian Certification:

(i)   Custodian  is duly  organized,  validly  existing  and in good  standing
            under the laws of the United States;

(ii)  Custodian has the full power and authority to hold each  Receivable,  to
            hold  title to the  Receivables  as  custodian  on  behalf  of the
            Receivables Holders,  and to execute,  deliver and perform, and to
            enter into and consummate all  transactions  contemplated  by this
            Agreement,  has  duly  authorized  the  execution,   delivery  and
            performance  of this  Agreement,  has duly  executed and delivered
            this Agreement,  and this Agreement constitutes a legal, valid and
            binding  obligation  of  Custodian,   enforceable  against  it  in
            accordance  with its terms,  except as  enforcement  of such terms
            may  be  limited  by   bankruptcy,   insolvency  or  similar  laws
            affecting the  enforcement of creditors'  rights  generally and by
            the availability of equitable remedies;

(iii) Neither the  execution and delivery of this  Agreement,  the delivery of
            Receivables   to   Custodian,   the  issuance  of  the   Custodian
            Certifications,  the consummation of the transactions contemplated
            hereby or thereby,  nor the  fulfillment of or compliance with the
            terms and  conditions  of this  Agreement  will  conflict  with or
            result in a breach of any of the terms,  conditions  or provisions
            of  Custodian's  charter or bylaws or any  agreement or instrument
            to which  Custodian  is now a party or by  which it is  bound,  or
            constitute  a default  or result in an  acceleration  under any of
            the  foregoing,  or  result  in the  violation  of any law,  rule,
            regulation,  order,  judgment or decree to which  Custodian or its
            property is subject;

                                        7

(iv)  Custodian  does not  believe,  nor does it have any  reason  or cause to
            believe,  that it cannot perform each and every covenant contained
            in this Agreement;

(v)   To  Custodian's  knowledge  after due  inquiry,  there is no  litigation
            pending  or   threatened,   which  if   determined   adversely  to
            Custodian,  would  adversely  affect the  execution,  delivery  or
            enforceability  of  this  Agreement,  or  any  of  the  duties  or
            obligations  of  Custodian  hereunder,   or  which  would  have  a
            material adverse effect on the financial condition of Custodian;

(vi)  No  consent,   approval,   authorization   or  order  of  any  court  or
            governmental  agency  or  body  is  required  for  the  execution,
            delivery  and   performance  by  Custodian  of  or  compliance  by
            Custodian  with  this  Agreement  or  the   consummation   of  the
            transactions contemplated hereby;

(vii) Upon written  request of the  Indenture  Trustee,  Custodian  shall take
            such steps as  requested  by the  Indenture  Trustee to protect or
            maintain any interest in any Receivable; and

(viii)      The  Custodian  has not been  notified by any party other than the
            Originator,  the  Depositor,  the Issuing Entity and the Indenture
            Trustee  that any such  third  party  claims  an  interest  in the
            Receivables  or  the  Receivable  Files  nor  is  any  such  party
            requesting  the  Custodian  to act as a bailee with respect to the
            Receivables or the Receivable Files.

            Custodian  makes  no  representations  or  warranties  as  to  the
validity, legality, sufficiency,  enforceability,  perfection,  genuineness or
prior  recorded  status of any of the documents  contained in each  Receivable
File or the collectability,  insurability, effectiveness or suitability of any
Receivable.

Section 5.2.      Charges and  Expenses.  The  Depositor  will pay all fees of
Custodian  in  connection  with the  performance  of its duties  hereunder  in
accordance  with  written  agreements  to be  entered  into  from time to time
between the  parties  hereto and  Custodian,  including  fees and  expenses of
counsel  incurred by Custodian  in the  performance  of its duties  hereunder;
provided,  however, that (i) Custodian shall in no event acquire any lien upon
any Receivable  deposited  under this  Agreement or the Purchase  Agreement or
the Sale and Servicing Agreement,  or any claim against any Receivables Holder
by  reason of the  failure  of the  Depositor  to pay any of such  charges  or
expenses  and  (ii) in  the  event  the  Depositor  fails  to pay the fees and
expenses  of  Custodian  as set forth in such  written  agreements,  Custodian
shall have no  obligation  to take actions or incur costs in  connection  with
this  Agreement  unless  the  Depositor  or another  Person has made  adequate
provision for payment of Custodian's  fees and expenses.  The Depositor  shall
indemnify  the  Custodian  against  payment of any  documentary  stamp  taxes,
intangible taxes and other similar taxes,  penalties and interest  incurred in
connection with the Receivables and the transactions contemplated hereby.

Section 5.3.      No Adverse  Interests.  Custodian  covenants and warrants to
the  Originator,  the  Depositor,  the  Servicer,  the Issuing  Entity and the

                                        8

Indenture  Trustee,  that  as of the  date of  each  Custodian  Certification:
(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
custodial  relationship  hereunder  does not  create any  interest,  by way of
security  or  otherwise,  of  Custodian  in or to any  Receivable,  other than
Custodian's rights as custodian hereunder.

Section 5.4.      Inspections.   Upon  reasonable   prior  written  notice  to
Custodian,  the Servicer,  the Depositor,  the Indenture Trustee,  the Issuing
Entity and such Person's agents,  accountants,  attorneys and auditors will be
permitted  during  normal  business  hours to examine  Custodian's  documents,
records and other  papers in  possession  of or under the control of Custodian
relating to the Receivables.

Section 5.5.      Insurance.  Custodian  shall,  at its own expense,  maintain
at all times  during the  existence of this  Agreement  and keep in full force
and effect,  (1) fidelity  insurance,  (2) theft of documents  insurance,  and
(3) forgery insurance subject to deductibles,  all as is customary for amounts
and with  insurance  companies  reasonably  acceptable to the Servicer and the
Indenture  Trustee.  A certificate of the  respective  insurer as to each such
policy  or a  blanket  policy  for such  coverage  shall be  furnished  to the
Servicer or the  Indenture  Trustee,  upon request,  containing  the insurer's
statement or  endorsement  that such  insurance  shall not terminate  prior to
receipt by such party, by registered mail, of 10 days advance notice thereof.

Section 5.6.      Limitation of Liability.  Custodian  assumes no  obligation,
and shall be subject to no  liability,  under this  Agreement,  except for its
negligence or willful  misconduct in the  performance of the  obligations  and
duties as are  specifically  set forth herein.  Custodian  shall not be liable
for any action or non-action  by it in reliance on advice of counsel  believed
by it in good faith to be competent to give such  advice.  Custodian  may rely
and shall be  protected  in acting upon any written  notice,  order,  request,
direction  or other  document  believed  by it to be genuine  and to have been
signed or  presented  by the proper  party or parties.  Except with respect to
the  willful  misconduct  of the  Custodian,  neither  the  Custodian  nor its
directors,  officers  and  agents  shall be held  liable for any  indirect  or
consequential  damages  resulting from any action taken or omitted to be taken
by it or them under or in connection with this  Agreement,  even if advised of
the  possibility  of such  damages.  The  provisions of this Section 5.6 shall
survive the termination of this Agreement.

Section 5.7.      Indemnification.  Servicer  agrees  to  indemnify  Custodian
against,  and to hold it  harmless  from,  any  liabilities,  and any  related
out-of-pocket expenses,  which it may incur in connection with this Agreement,
the Sale and  Servicing  Agreement,  the Purchase  Agreement or the  Custodian
Certifications,  other  than  any  liabilities  and  expenses  arising  out of
Custodian's  negligence  or  willful  misconduct.   The  Custodian  agrees  to
indemnify,  defend  and  hold  harmless  the  Indenture  Trustee  against  any
liability to  Noteholders or  Certificateholder  arising out of the negligence
or willful  misconduct of the Custodian (a) in the preparation or execution of
any Custodian  Certification  or (b) resulting in the loss of Receivable Files
in  the   custody   of   the   Custodian.   This   indemnity   shall   include
indemnification  as to reasonable  attorneys'  fees and costs,  whether or not
suit be brought,  and including  such fees and costs on appeal.  The Indenture
Trustee  shall give prompt  written  notice to the  Custodian of any claim for
which  indemnity  is or may be sought and shall  afford to the  Custodian  the
opportunity to defend such claim.

                                        9

Section 5.8.      Further Rights of Custodian.

(a)         If the  Custodian  is at any  time  uncertain  of its  obligations
      hereunder,  the  Custodian,  upon prior written  notice to the Indenture
      Trustee,  the Issuing  Entity,  the  Originator,  the  Depositor and the
      Servicer,  may  refrain  from  taking  any action  with  respect to such
      matter until such  uncertainty is removed.  If  conflicting  demands are
      made  on the  Custodian  with  respect  to  any  matter,  the  Indenture
      Trustee's  demand shall  control,  except during the period prior to the
      issuance  of  the   Trustee's   Custodian   Certification   pursuant  to
      Section 3.1  hereof,  when the applicable  Receivables  Holder's  demand
      shall  control  and the  Custodian  shall have the right to rely on such
      controlling  demand.  The  Custodian  shall  have the  right in any such
      case  to  interplead  any  or  all of  the  documents  contained  in the
      Receivable  Files  in  a  court  of  competent  jurisdiction  and,  upon
      delivery  thereof,  shall have no further  obligations  thereunder  with
      respect to such documents.

(b)         The  obligations  of the Custodian  shall be determined  solely by
      the express provisions of this Agreement.  No representation,  warranty,
      covenant or obligation  of the  Custodian  shall be implied with respect
      to  this  Agreement  or  the  Custodian's  service  hereunder.   Without
      limiting  the   generality  of  the  foregoing   statement,   except  as
      specifically   required   herein,   the  Custodian  shall  be  under  no
      obligation  to  inspect,  review  or  examine  the  Receivable  Files to
      determine that the contents thereof are complete,  genuine,  enforceable
      or  appropriate  for the  represented  purpose  or that  they  have been
      actually  recorded or filed in  required  offices or that they are other
      than what they purport to be on their face.

(c)         No  provision of this  Agreement  shall  require the  Custodian to
      spend or risk its own funds or otherwise  incur  financial  liability in
      performance  of its duties  under this  Agreement  unless,  pursuant  to
      Section 5.2   hereof,   adequate   provision   has  been  made  for  the
      reimbursement of the Custodian's expenses hereunder.

                                  ARTICLE VI

                           MISCELLANEOUS PROVISIONS

Section 6.1.      Amendment.  This  Agreement may be amended from time to time
by Custodian, the Originator,  the Depositor, the Servicer, the Issuing Entity
and the  Indenture  Trustee by written  agreement  signed by such  parties and
upon satisfaction of the Rating Agency Condition.

Section 6.2.      Governing  Law.  THIS  AGREEMENT  SHALL BE  GOVERNED  BY AND
CONSTRUED  IN  ACCORDANCE  WITH THE LAWS OF THE  STATE  OF NEW  YORK,  WITHOUT
REFERENCE TO ITS  CONFLICT OF LAW  PROVISIONS  (OTHER THAN SECTION  5-1401 AND
5-1402 OF THE GENERAL  OBLIGATIONS  OF LAW), AND THE  OBLIGATIONS,  RIGHTS AND
REMEDIES OF THE PARTIES  HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
LAWS.

                                        10

Section 6.3.      Notices.  All demands,  notices and communication  hereunder
shall be in writing and shall be deemed to have been duly given if  personally
delivered at or mailed by overnight mail,  certified mail or registered  mail,
postage  prepaid,  to  (i) in  the case of the  Servicer  and the  Originator,
Caterpillar Financial Services Corporation,  2120 West End Avenue,  Nashville,
Tennessee  37203-0001,   (ii) in  the  case  of  the  Depositor,   Caterpillar
Financial Funding  Corporation,  4040 S. Eastern Avenue, Suite 344, Las Vegas,
Nevada  89119,  (iii) in  the case of the Issuing  Entity,  c/o [Name of Owner
Trustee],  as Owner Trustee, c/o [Address],  with a copy to the Administrator,
Caterpillar Financial Services Corporation,  2120 West End Avenue,  Nashville,
Tennessee  37203-0001,  (iv) in the case of the  Indenture  Trustee,  [Name of
Indenture  Trustee],  [Address],  (v) in the case of the  Custodian,  [Name of
Custodian],  [Address],  and (vi) in the case of the Rating Agencies, at their
respective  addresses set forth in the Sale and Servicing  Agreement,  and, in
each such case, at such other  addresses as may hereafter be furnished to each
party hereto in writing.

Section 6.4.      Severability  of  Provisions.  If  any  one or  more  of the
covenants, agreements,  provisions or terms of this Agreement shall be for any
reason whatsoever held invalid,  then such covenants,  agreements,  provisions
or terms shall be deemed severable from the remaining  covenants,  agreements,
provisions or terms of this  Agreement and shall in no way affect the validity
or enforceability of the other covenants,  agreements,  provisions or terms of
this Agreement.

Section 6.5.      No  Partnership.  Nothing herein  contained  shall be deemed
or construed to create a  co-partnership  or joint venture  between  Custodian
and the other parties hereto.

Section 6.6.      Termination   of   Agreement.   This   Agreement   shall  be
terminated  upon  termination  of the Sale and  Servicing  Agreement or at the
option of  Indenture  Trustee  on 30 days  written  notice to  Custodian,  the
Servicer, the Depositor,  the Issuing Entity and the Originator.  Concurrently
with, or as soon as practicable  after,  the  termination  of this  Agreement,
Custodian  shall  redeliver the Receivable  Files to the Indenture  Trustee at
such place as the Indenture  Trustee may  reasonably  designate and until such
redelivery,  Custodian  shall hold such  Receivable  Files in its sole custody
and  control  as  custodian  for  and  bailee  of the  Indenture  Trustee.  In
connection  with  the  administration  of this  Agreement,  Custodian  and the
Indenture  Trustee may agree from time to time upon the  interpretation of the
provisions of this Agreement,  as such  interpretation may in their opinion be
consistent  with the general  tenor and purposes of this  Agreement,  any such
interpretation to be signed and annexed hereto.

Section 6.7.      Counterparts.     This    Agreement    may    be    executed
simultaneously  in any  number  of  counterparts,  each of which  counterparts
shall be deemed to be an original,  and such counterparts shall constitute but
one and the same instrument.

Section 6.8.      Assignment.  No party hereto shall sell,  pledge,  assign or
otherwise  transfer this  Agreement  without the prior written  consent of the
other parties hereto and satisfaction of the Rating Agency Condition.

Section 6.9.      Headings.  Section headings are for reference  purposes only
and shall not be construed as a part of this Agreement.

                                        11

Section 6.10.     Advice of Counsel.  Custodian  shall be entitled to rely and
act upon  advice of counsel  with  respect  to its  performance  hereunder  as
Custodian  and shall be  without  liability  for any action  reasonably  taken
pursuant to such  advice,  provided  that such action is not in  violation  of
application   federal  or  state  law.   This   paragraph   shall  not  negate
Custodian's obligations under Section 5.7.

Section 6.11.     No Petition.  Custodian,  by entering  into this  Agreement,
hereby  covenants and agrees that it will not at any time (whether or not this
Agreement has been terminated)  institute against the Depositor or the Issuing
Entity,  or join in any  institution  against  the  Depositor  or the  Issuing
Entity  of,  any  bankruptcy,   reorganization,   arrangement,  insolvency  or
liquidation proceedings,  or other proceedings under any United States federal
or  state  bankruptcy  or  similar  law in  connection  with  any  obligations
relating to the  Certificate,  the Notes,  this  Agreement or any of the other
Basic Documents.

Section 6.12.     Resignation of Custodian.

(a)         The   Custodian   may  at  any  time  resign  and   terminate  its
      obligations  under this  Agreement  upon at least 90 days' prior written
      notice to the Servicer and the Indenture  Trustee.  The Custodian may be
      removed at any time at the  written  request of the  Indenture  Trustee.
      In the event of such  resignation  or  removal,  the  Indenture  Trustee
      shall appoint a successor  custodian  acceptable to the Servicer,  which
      appointment must satisfy the Rating Agency  Condition.  If the Indenture
      Trustee  fails to  appoint a  successor  custodian  within 30 days,  the
      Servicer  shall  appoint a  successor  custodian.  In no event shall the
      resignation  of the Custodian be effective  until a successor  custodian
      is  duly  appointed   hereunder.   One  original   counterpart  of  such
      instrument  of  appointment  shall be delivered to each of the Servicer,
      the  Custodian and the successor  custodian.  The Servicer  shall notify
      the  Rating  Agencies  of  any  such  resignation  or  removal  and  the
      appointment of a successor custodian.

(b)         In the event of any  resignation,  the  Custodian  shall  promptly
      transfer to the successor  custodian (or to the Indenture  Trustee if no
      successor   custodian  has  been   appointed)  all  of  the  Receivables
      (including the Receivable  Files) in its possession under this Agreement
      and take such other action as may be requested by the Indenture  Trustee
      to  effect  the  transfer  of the  Custodian's  Receivable  Files to the
      successor custodian,  which shall provide a written receipt for all such
      transferred  documents and instruments.  On completion of such transfer,
      the  Custodian  shall be relieved of all  further  responsibilities  and
      obligations hereunder.

Section 6.13.     Limitation  of  Liability  of  Indenture  Trustee and Owner
Trustee.

(a)         Notwithstanding  anything contained herein to the contrary,  in no
      event shall [NAME] in its  individual  capacity  have any  liability for
      the  representations,   warranties,   covenants,   agreements  or  other
      obligations  of the  Issuer  hereunder  or in  any of the  certificates,
      notices or  agreements  delivered  pursuant  hereto,  as to all of which
      recourse shall be had solely to the assets of the Issuer.

                                        12

(b)         Notwithstanding  anything  contained herein to the contrary,  this
      instrument  has been  countersigned  by  [Name],  not in its  individual
      capacity but solely as Owner Trustee,  and in no event shall [Name] have
      any   liability   for  the   representations,   warranties,   covenants,
      agreements  or other  obligations  of the Issuer  hereunder or in any of
      the certificates,  notices or agreements  delivered  pursuant hereto, as
      to all of  which  recourse  shall be had  solely  to the  assets  of the
      Issuer.  For all purposes of this  Agreement,  in the performance of any
      duties or obligations of the Issuer  hereunder,  the Owner Trustee shall
      be  subject  to,  and  entitled  to  the  benefits  of,  the  terms  and
      provisions of Article VI, VII and VIII of the Trust Agreement.

                                 ARTICLE VII

                           REGULATION AB COMPLIANCE

Section 7.1.      Additional  Representations  and Warranties of the Custodian.

(a)     The Custodian hereby  represents and warrants that the information set
      forth under the caption "The Receivables Pool – Custodial  Arrangements"
      (the  "Custodian   Disclosure")  in  the  Prospectus   Supplement  dated
      [__________]   relating  to  the  Notes  does  not  contain  any  untrue
      statement of a material  fact or omit to state a material  fact required
      to be  stated  therein  or  necessary  in order  to make the  statements
      therein,  in the light of the circumstances  under which they were made,
      not misleading.

(b)     The Custodian  shall be deemed to represent and warrant as of the date
      hereof  and  on  each  date  on  which  information  is  provided  under
      Section 7.2  that,  except as disclosed in writing to the Servicer prior
      to such date:  (i) there are no aspects of its financial  condition that
      could have a material  adverse  effect on the  performance  by it of its
      Custodian  obligations under this Agreement;  (ii) there are no legal or
      governmental  proceedings pending (or known to be contemplated)  against
      it that would be material  to holders of the Notes;  and (iii) there are
      no  affiliations,   relationships   or  transactions   relating  to  the
      Custodian with respect to the  Originator,  Servicer,  Depositor,  Owner
      Trustee,  Indenture Trustee or other material transaction party (as such
      terms  are  used  in  Regulation  AB)  relating  to  the  securitization
      transaction contemplated by the Agreement.

(c)     If so  requested  by  the  Servicer  or  the  Depositor  on  any  date
      following the Closing Date,  the Custodian  shall,  within five Business
      Days  following  such  request,  confirm in writing the  accuracy of the
      representations  and  warranties  set  forth  in  paragraph  (b) of this
      Section or, if any such  representation  and warranty is not accurate as
      of  the  date  of  such  confirmation,   provide   reasonably   adequate
      disclosure of the pertinent facts, in writing, to the requesting party.

                                        13

Section 7.2.      Additional  Representations  and Warranties of the Custodian.
For so long as  the  Notes are  outstanding,  for the  purpose  of  satisfying
the Depositor's  reporting  obligation  under the Exchange Act with respect to
any class of Notes,  the Custodian shall (a) notify the Servicer in writing of
any material  litigation or  governmental  proceedings  pending or known to be
contemplated against the Custodian that would be material to Noteholders,  and
(b) provide to the Servicer a written  description of such proceedings.  As of
the date the  Servicer  files  each  Report  on Form  10-D or Form  10-K  with
respect to the  Notes,  the  Custodian  will be deemed to  represent  that any
information  previously  provided under this Article VII is materially correct
and does not have any material  omissions unless the Custodian has provided an
update to such information.

Section 7.3.      Report on Assesment of Compliance and Attestation

            On or before March 15 of each calendar year, the Custodian shall:

(a)     deliver to the  Servicer a report  (in form and  substance  reasonably
      satisfactory to the Servicer)  regarding the  Custodian's  assessment of
      compliance   with  the   applicable   servicing   criteria   during  the
      immediately  preceding calendar year, as required under Rules 13a-18 and
      15d-18 of the Exchange Act and Item 1122 of  Regulation  AB. Such report
      shall be addressed to the Servicer and signed by an  authorized  officer
      of the Custodian; and

(b)     deliver to the  Servicer a report of a  registered  public  accounting
      firm reasonably  acceptable to the Servicer that attests to, and reports
      on, the  assessment  of  compliance  made by the Custodian and delivered
      pursuant  to the  preceding  paragraph.  Such  attestation  shall  be in
      accordance  with Rules  1-02(a)(3)  and 2-02(g) of Regulation  S-X under
      the Securities Act and the Exchange Act.

Section 7.4.      Indemnification;  Remedies.  The Custodian  shall  indemnify
the  Originator,  the  Servicer,  the  Depositor,  and each  affiliate of such
parties and each Person who controls  any of such parties  (within the meaning
of Section 15 of the  Securities  Act and Section 20 of the Exchange Act), and
the respective  present and former directors,  officers,  employees and agents
of each of the  foregoing,  and  shall  hold  each of them  harmless  from and
against any losses, damages,  penalties,  fines,  forfeitures,  legal fees and
expenses and related costs, judgments,  and any other costs, fees and expenses
that any of them may sustain arising out of or based upon:

(a)    (i) any untrue  statement of a material fact contained or alleged to be
      contained  in the  Custodian  Disclosure  and any  information,  report,
      certification,  accountants'  attestation  or  other  material  provided
      under this Article VII by or on behalf of the  Custodian  (collectively,
      the "Custodian  Information"),  or (ii) the omission or alleged omission
      to state in the  Custodian  Information  a material  fact required to be
      stated in the  Custodian  Information  or necessary in order to make the
      statements  therein,  in the light of the circumstances under which they
      were made, not misleading; or

(b)     any  failure by the  Custodian  to deliver  any  information,  report,
      certification,  accountants'  attestation  or other material when and as
      required under this Article VII.

                                        14

                           [Signature Pages Follow]

                                        15

            IN WITNESS WHEREOF,  the parties hereto have caused their names to
be signed hereto by their respective  officers thereunto duly authorized,  all
as of the day and year first above written.

                                       ORIGINATOR

                                       CATERPILLAR FINANCIAL SERVICES
                                       CORPORATION

                                       By:_____________________________________
                                            Name:
                                            Title:

                                       SERVICER

                                       CATERPILLAR FINANCIAL SERVICES
                                       CORPORATION, as Servicer

                                       By:_____________________________________
                                            Name:
                                            Title:

                                       DEPOSITOR

                                       CATERPILLAR FINANCIAL FUNDING
                                       CORPORATION, as Depositor

                                       By:_____________________________________
                                            Name:
                                            Title:

                                      ISSUING ENTITY

                                       CATERPILLAR FINANCIAL ASSET TRUST
                                       200[_]-[_]

                                       By:  [NAME], not in its individual
                                            capacity but solely as Owner
                                            Trustee under the Trust Agreement

                                       By:_____________________________________
                                            Name:  __________
                                            Title: __________

                                       [NAME]

                                       [NAME], as Indenture Trustee

                                       By:_____________________________________
                                            Name:  __________
                                            Title: __________

                                       CUSTODIAN

                                       [NAME], as Custodian

                                       By:_____________________________________
                                            Name:  __________
                                            Title: __________

                                   EXHIBIT A

                           CUSTODIAN CERTIFICATION

                                                        Certification No._____

                                    [DATE]

To:   [DEPOSITOR]
      [ISSUING ENTITY]
      [INDENTURE TRUSTEE]

            Re:   Custodial  Agreement,  dated as of [Date]  (the  "Custodial
                  Agreement"),  by and among  Caterpillar  Financial  Services
                  Corporation  (the   "Originator"),   Caterpillar   Financial
                  Services   Corporation,   as  Servicer   (the   "Servicer"),
                  Caterpillar     Financial    Funding     Corporation    (the
                  "Depositor"),  Caterpillar  Financial Asset Trust 200[_]-[_]
                  (the "Issuing  Entity"),  [NAME],  as Indenture Trustee (the
                  "Indenture   Trustee")   and  [NAME],   as  Custodian   (the
                  "Custodian")

Gentlemen:

            [In   accordance   with  the  provisions  of  Section 4.1  of  the
above-referenced  Custodial Agreement, the Custodian hereby certifies (i) that
it has received the Receivable  Files delivered to it by the  Originator,  and
(ii) that as to each  Receivable,  Custodian  holds  such  Receivable  and the
other  documents  in the  related  Receivable  File in its  name as  custodian
solely  on behalf  of and for the  benefit  of [the  Depositor]  [the  Issuing
Entity] [the  Indenture  Trustee],  without  written notice (a) of any adverse
claims,  liens or  encumbrances,  (b) that any  Receivable  was overdue or has
been  dishonored,  (c) of  evidence  on the  face of any  Receivable  or other
document in the Receivable File of any security  interest  therein,  or (d) of
any  defense  against  or claim to the  Receivable  by any other  party.]  [In
accordance  with  the  provisions  of  Section 4.1  of  the   above-referenced
Custodial  Agreement,  the Custodian hereby certifies that it has received all
of  the  Receivable   Files   identified  on  the  Receivable   Schedule  (the
"Receivable  Schedule")  attached hereto dated as of [Date].  The undersigned,
as Custodian,  confirms that the  Receivable  number in each  Receivable  File
conforms  to  the  respective  Receivable  number  listed  on  the  Receivable
Schedule.]  Capitalized  terms used herein without  definition  shall have the
meanings ascribed to them in the Custodial Agreement.

            Custodian  makes  no  representations  or  warranties  as  to  the
validity,  legality,   sufficiency,   enforceability,   genuineness  or  prior
recorded  status of any of the documents  contained in each Receivable File or
the  collectability,   insurability,   effectiveness  or  suitability  of  any
Receivable.

                                        A-1

            [Upon  repurchase  of the  Receivables  to  which  this  Custodian
Certification  relates and payment of the  applicable  repurchase  price,  the
Receivables  to which this Custodian  Certification  relates shall be returned
and released by  Custodian to the Person  paying such  repurchase  price,  and
this  Custodian  Certification  shall  be  and be  deemed  to be  canceled  by
Custodian and of no force and effect.]

                                       ________________________________________,
                                       as Custodian

                                       By_______________________________________
                                            Name:
                                            Title:

                                        A-2

                                   EXHIBIT B

                       REQUEST FOR RELEASE OF DOCUMENTS

                                    [DATE]

To:   [Custodian]

            Re:   Custodial  Agreement,  dated  as of  [Date],  by  and  among
                  Caterpillar     Financial    Services    Corporation    (the
                  "Originator"),  Caterpillar  Financial Services Corporation,
                  as Servicer (the "Servicer"),  Caterpillar Financial Funding
                  Corporation (the "Depositor"),  Caterpillar  Financial Asset
                  Trust  200[_]-[_]  (the  "Issuing   Entity"),   [NAME],   as
                  Indenture  Trustee (the "Indenture  Trustee") and [NAME], as
                  Custodian ("Custodian")

            In connection with the  administration  of the Receivables held by
you as Custodian under the above-referenced Custodial Agreement,  [_________],
on behalf of [________],  requests the release,  and acknowledges  receipt, of
the following for the Receivable described below, for the reason indicated:

A.    Documents Released

      _____ 1a.   Installment Sale Contract or Lease  b.    Principal  Balance
                  ____________________

      _____ 2.    Other documents:____________________________
                  ____________________________________________
                  ____________________________________________
                  ____________________________________________

B.    Obligor's Name, Address & Zip Code:

C.    Receivable Number:

D.    Reason for Requesting Documents (check one)

      _____ 1.    Receivable Paid in Full.

      _____ 2.    Receivable  Repurchased  Pursuant to the Purchase  Agreement
                  or the Sale and Servicing Agreement.

      _____ 3.    Receivable Liquidated.

      _____ 4.    Receivable in Foreclosure or Repossession Proceedings.

      _____ 5.    Receivable to be modified or extended.

                        If box 1, 2 or 3 above is checked,  and if all or part
            of Receivable  File was previously  released to us, please release
            to us our  previous  receipt  on  file  with  you,  as well as any
            additional  documents  in your  possession  relating  to the above

                                        B-1

            specified  Receivable.  If box 1, 2 or 3 is  checked,  evidence of
            receipt of payment by the Indenture  Trustee is required  prior to
            release.

                        If box 4 or 5 above is  checked,  upon our  return  of
            all  of  the  above   documents  to  you  as   Custodian,   please
            acknowledge  your receipt by signing in the space indicated below,
            and returning this form.

                        If box 5 above is  checked,  after  giving  effect  to
            such release,  the aggregate  Principal Balance of all Receivables
            released in connection  with  modifications  and extensions  shall
            not  exceed  $[__________].   In  addition,  upon  return  of  the
            Receivable  File,  we are  deemed to certify  that the  Receivable
            File as returned  contains the related  Receivable  as so modified
            and extended.

                        If box 1, 2 or 3 above is  checked,  this  request  is
            only valid if also  executed by the  Depositor  and the  Indenture
            Trustee.

            Documents  released  hereby in connection  with a modification  or
extension  must be  returned  to the  Custodian  on the same  Business  Day of
release.

                                       CATERPILLAR FINANCIAL SERVICES
                                       CORPORATION, as Servicer

                                       By_______________________________________
                                            Name:
                                            Title:
                                            Date:

                                       [_______________________________________]

                                       By_______________________________________
                                            Name:
                                            Title:
                                            Date:
Documents returned to Custodian:

________________________________
as Custodian

By______________________________
     Name:
     Title:
     Date:

                                        B-2

                                   ANNEX 1

                       Authorized Officers of Servicer

                                        B-3

                                   EXHIBIT C

                             TRANSFER CERTIFICATE

[NAME],
as Custodian under the
Custodial Agreement (defined below
[Address]                                                               [DATE]
            Re:   Custodial  Agreement,  dated as of  [Date]  (the  "Custodial
                  Agreement"),  by and among  Caterpillar  Financial  Services
                  Corporation  (the   "Originator"),   Caterpillar   Financial
                  Services   Corporation,   as  Servicer   (the   "Servicer"),
                  Caterpillar     Financial    Funding     Corporation    (the
                  "Depositor"),  Caterpillar  Financial Asset Trust 200[_]-[_]
                  (the "Issuing  Entity"),  [NAME],  as Indenture Trustee (the
                  "Indenture Trustee") and [NAME], as Custodian ("Custodian")

To whom it may concern:

            Pursuant  to  Sections 3.1   and   4.1  of  the   above-referenced
Custodial  Agreement  (capitalized terms used herein but not otherwise defined
shall  have  the  same  meanings  assigned  to  such  terms  in the  Custodial
Agreement),  we hereby advise you of the Transfer by the  undersigned  to [the
Depositor][the  Issuing  Entity][the  Indenture  Trustee]  of the  Receivables
identified  on  the   Receivable   Schedule[s]   attached   [hereto]  [to  the
[Depositor's    Custodian    Certification]    [Issuing   Entity's   Custodian
Certification]  with respect to the undersigned which we are delivering to you
for  cancellation].  You are  instructed  to hold  such  Receivables  for [the
Depositor]  [the  Issuing  Entity] [the  Indenture  Trustee] and to deliver to
[the  Depositor][the  Issuing  Entity][the  Indenture Trustee] a [Depositor's]
[Issuing Entity's] [Trustee's] Custodian Certification  acknowledging that you
hold such Receivables.

                                       Very truly yours,

                                       By_______________________________________
                                            Name:
                                            Title:

The  Custodian  hereby  acknowledges  receipt of
the  foregoing  instructions  and agrees to hold
such  Receivables  solely  for  [the  Depositor]
[the  Issuing  Entity] [the  Indenture  Trustee]
pursuant to the Custodial Agreement.

[NAME]

By:_________________________________
     Name:
     Title:

                                        C-1

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