Document:

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                                                                EXHIBIT 4(f)(51)

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                 CREDIT ACCEPTANCE AUTO DEALER LOAN TRUST 2003-1
                     $100,000,000 Class A Asset Backed Notes

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

                                    INDENTURE

                            Dated as of June 27, 2003

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

                               JPMORGAN CHASE BANK
                 as the Trust Collateral Agent/Indenture Trustee

                 CREDIT ACCEPTANCE AUTO DEALER LOAN TRUST 2003-1
                                  as the Issuer

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                                TABLE OF CONTENTS

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<S>                                                                                                                  <C>
ARTICLE I             Definitions and Incorporation by Reference.................................................      2
   SECTION 1.1.            Definitions...........................................................................      2
   SECTION 1.2.            Rules of Construction.................................................................      9

ARTICLE II            The Notes..................................................................................     10
   SECTION 2.1.            Form..................................................................................     10
   SECTION 2.2.            Execution, Authentication and Delivery................................................     10
   SECTION 2.3.            Registration of Transfer and Exchange of Class A Notes................................     11
   SECTION 2.4.            Mutilated, Destroyed, Lost, or Stolen Notes...........................................     14
   SECTION 2.5.            Persons Deemed Owners.................................................................     15
   SECTION 2.6.            Access to List of Noteholders' Names and Addresses....................................     15
   SECTION 2.7.            Maintenance of Office or Agency.......................................................     15
   SECTION 2.8.            Payment of Principal and Interest; Defaulted Interest.................................     15
   SECTION 2.9.            Release of Collateral.................................................................     16

ARTICLE III           Covenants, Representations and Warranties..................................................     16
   SECTION 3.1.            Payment of Principal and Interest.....................................................     16
   SECTION 3.2.            Maintenance of Office or Agency.......................................................     17
   SECTION 3.3.            Money for Payments to be Held in Trust................................................     17
   SECTION 3.4.            Existence.............................................................................     18
   SECTION 3.5.            Protection of Trust Property..........................................................     19
   SECTION 3.6.            Opinions as to Trust Property.........................................................     19
   SECTION 3.7.            Performance of Obligations; Servicing of Contracts....................................     20
   SECTION 3.8.            Negative Covenants....................................................................     21
   SECTION 3.9.            Annual Statement as to Compliance.....................................................     21
   SECTION 3.10.           Issuer May Consolidate, Etc...........................................................     22
   SECTION 3.11.           Successor or Transferee...............................................................     23
   SECTION 3.12.           No Other Business.....................................................................     24
   SECTION 3.13.           No Borrowing..........................................................................     24
   SECTION 3.14.           Guarantees, Loans, Advances and Other Liabilities.....................................     24
   SECTION 3.15.           Capital Expenditures..................................................................     24
   SECTION 3.16.           Compliance with Laws..................................................................     24
   SECTION 3.17.           Restricted Payments...................................................................     24
   SECTION 3.18.           Notice of Indenture Events of Default.................................................     25
   SECTION 3.19.           Further Instruments and Acts..........................................................     25
   SECTION 3.20.           Amendments of Sale and Servicing Agreement and
                           Trust Agreement.......................................................................     25
   SECTION 3.21.           Income Tax Characterization...........................................................     25
   SECTION 3.22.           Perfection Representations, Warranties and Covenants..................................     25

ARTICLE IV            Satisfaction and Discharge.................................................................     26
   SECTION 4.1.            Satisfaction and Discharge of Indenture...............................................     26
   SECTION 4.2.            Application of Trust Money............................................................     27
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<TABLE>
<S>                                                                                                                   <C>
   SECTION 4.3.            Repayment of Moneys Held by Paying Agent..............................................     27

ARTICLE V             Remedies...................................................................................     27
   SECTION 5.1.            Indenture Events of Default...........................................................     27
   SECTION 5.2.            Rights Upon Indenture Event of Default................................................     29
   SECTION 5.3.            Collection of Indebtedness and Suits for Enforcement by
                           Indenture Trustee.....................................................................     30
   SECTION 5.4.            Remedies..............................................................................     33
   SECTION 5.5.            Optional Preservation of the Trust Property...........................................     34
   SECTION 5.6.            Reserved..............................................................................     34
   SECTION 5.7.            Limitation of Suits...................................................................     34
   SECTION 5.8.            Unconditional Rights of Noteholders To Receive
                           Principal and Interest................................................................     35
   SECTION 5.9.            Restoration of Rights and Remedies....................................................     35
   SECTION 5.10.           Rights and Remedies Cumulative........................................................     36
   SECTION 5.11.           Delay or Omission Not a Waiver........................................................     36
   SECTION 5.12.           Control by Class A Insurer............................................................     36
   SECTION 5.13.           Undertaking for Costs.................................................................     36
   SECTION 5.14.           Waiver of Stay or Extension Laws......................................................     37
   SECTION 5.15.           Action on Class A Notes...............................................................     37
   SECTION 5.16.           Performance and Enforcement of Certain Obligations....................................     37
   SECTION 5.17.           Subrogation...........................................................................     37
   SECTION 5.18.           Preference Claims.....................................................................     38

ARTICLE VI            The Indenture Trustee......................................................................     39
   SECTION 6.1.            Duties of Indenture Trustee...........................................................     39
   SECTION 6.2.            Rights of Indenture Trustee...........................................................     41
   SECTION 6.3.            Individual Rights of Indenture Trustee................................................     42
   SECTION 6.4.            Indenture Trustee's Disclaimer........................................................     43
   SECTION 6.5.            Notice of Indenture Events of Default.................................................     43
   SECTION 6.6.            Reports by Indenture Trustee to Holders...............................................     43
   SECTION 6.7.            Compensation..........................................................................     43
   SECTION 6.8.            Replacement of Indenture Trustee......................................................     44
   SECTION 6.9.            Successor Indenture Trustee by Merger.................................................     45
   SECTION 6.10.           [Reserved]............................................................................     46
   SECTION 6.11.           Appointment of Co-Indenture Trustee or Separate Indenture Trustee.....................     46
   SECTION 6.12.           Eligibility...........................................................................     47
   SECTION 6.13.           Trust Collateral Agent to Follow Indenture Trustee's Directions.......................     48
   SECTION 6.14.           Representations and Warranties of the Indenture Trustee...............................     48
   SECTION 6.15.           Waiver of Setoffs.....................................................................     48
   SECTION 6.16.           Control by the Class A Insurer........................................................     49
   SECTION 6.17.           Disqualification of the Indenture Trustee.............................................     49
   SECTION 6.18.           Authorization and Direction...........................................................     49
   SECTION 6.19.           Action under the Intercreditor Agreement..............................................     49

ARTICLE VII           Noteholders' Lists and Reports.............................................................     49
   SECTION 7.1.            Issuer To Furnish To Indenture Trustee Names and Addresses of Noteholders.............     49
</TABLE>

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<TABLE>
<S>                                                                                                                   <C>
   SECTION 7.2.            Preservation of Information; Communications to Noteholders............................     50

ARTICLE VIII          Accounts, Disbursements and Releases.......................................................     50
   SECTION 8.1.            Collection of Money...................................................................     50
   SECTION 8.2.            Release of Trust Property.............................................................     50
   SECTION 8.3.            Opinion of Counsel....................................................................     50

ARTICLE IX            Supplemental Indentures....................................................................     51
   SECTION 9.1.            Supplemental Indentures Without Consent of Noteholders................................     51
   SECTION 9.2.            Supplemental Indentures with Consent of Noteholders...................................     52
   SECTION 9.3.            Execution of Supplemental Indentures..................................................     53
   SECTION 9.4.            Effect of Supplemental Indenture......................................................     54
   SECTION 9.5.            Reference in Class A Notes to Supplemental Indentures.................................     54

ARTICLE X             Redemption of Notes........................................................................     54
   SECTION 10.1.           Redemption............................................................................     54
   SECTION 10.2.           Form of Redemption Notice.............................................................     55
   SECTION 10.3.           Class A Notes Payable on Redemption Date..............................................     55

ARTICLE XI            Miscellaneous..............................................................................     56
   SECTION 11.1.           Compliance Certificates and Opinions, etc.............................................     56
   SECTION 11.2.           Form of Documents Delivered to Indenture Trustee......................................     57
   SECTION 11.3.           Acts of Noteholders...................................................................     58
   SECTION 11.4.           Notices, etc..........................................................................     58
   SECTION 11.5.           Notices to Noteholders; Waiver........................................................     59
   SECTION 11.6.           Alternate Payment and Notice Provisions...............................................     60
   SECTION 11.7.           Effect of Headings and Table of Contents..............................................     60
   SECTION 11.8.           Successors and Assigns................................................................     60
   SECTION 11.9.           Separability..........................................................................     60
   SECTION 11.10.          Benefits of Indenture.................................................................     60
   SECTION 11.11.          Legal Holidays........................................................................     61
   SECTION 11.12.          GOVERNING LAW.........................................................................     61
   SECTION 11.13.          Counterparts..........................................................................     61
   SECTION 11.14.          Recording of Indenture................................................................     61
   SECTION 11.15.          Trust Obligation......................................................................     61
   SECTION 11.16.          No Petition...........................................................................     62
   SECTION 11.17.          Inspection............................................................................     62
   SECTION 11.18.          Maximum Interest Payable..............................................................     62
   SECTION 11.19.          No Legal Title in Holders.............................................................     63
   SECTION 11.20.          Third Party Beneficiary...............................................................     63
   SECTION 11.21.          Class A Insurer Control Rights........................................................     63
</TABLE>

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EXHIBIT
    Exhibit A  Form of Class A Note

SCHEDULE
    Schedule A  Perfection Representations, Warranties and Covenants

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                  INDENTURE dated as of June 27, 2003, between CREDIT ACCEPTANCE
AUTO DEALER LOAN TRUST 2003-1, a Delaware statutory trust (the "Issuer"), and
JPMORGAN CHASE BANK, a New York banking corporation, as trust collateral agent
(the "Trust Collateral Agent") and as indenture trustee (the "Indenture
Trustee").

                  Each party agrees as follows for the benefit of the other
party and for the equal and ratable benefit of the Holders of the Issuer's
$100,000,000 Class A 2.77% Asset Backed Notes (the "Class A Notes"), and the
Class A Insurer:

                                 GRANTING CLAUSE

                  The Issuer hereby grants to the Indenture Trustee for the
benefit of itself and the Class A Insurer and the Class A Noteholders, as their
respective interests may appear, a first-priority perfected security interest in
all property of the Issuer, including all of the Issuer's right, title and
interest in and to the following collateral (the "Collateral") now owned or
hereafter acquired, which Collateral shall be held by the Trust Collateral Agent
on behalf of the Indenture Trustee, subject to the lien of this Indenture:

                  (i)      all right, title, and interest of the Issuer in and
to the Dealer Loans listed on Schedule A to the Sale and Servicing Agreement,
and listed on any addendum to Schedule A delivered by the Seller during the
Revolving Period; and proceeds thereof;

                  (ii)     certain rights under the Dealer Agreements listed on
Schedule A to the Sale and Servicing Agreement, and listed on any addendum to
Schedule A delivered by the Seller during the Revolving Period, including Credit
Acceptance's right to service the Dealer Loans and Contracts and receive the
related collection fee and receive reimbursement of certain recovery and
repossession expenses, in accordance with the terms of the Dealer Agreements
(other than the Excluded Dealer Agreement Rights);

                  (iii)    Collections (other than Dealer Collections) after the
applicable Cut-off Date;

                  (iv)     a security interest in each Contract listed on
Schedule A to the Sale and Servicing Agreement, and listed on any addendum to
Schedule A delivered by the Seller during the Revolving Period;

                  (v)      all records and documents relating to the Dealer
Loans and the Contracts;

                  (vi)     all security interests purporting to secure payment
of the Dealer Loans;

                  (vii)    all security interests purporting to secure payment
of the Contracts (including a security interest in each Financed Vehicle);

                  (viii)   all guarantees, insurance (including insurance
insuring the priority or perfection of any Contract) or other agreements or
arrangements securing the Contracts;

                  (ix)     all rights under the Contribution Agreement;

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                  (x)      the Collection Account, the Reserve Account, the
Principal Collection Account and the Note Distribution Account, amounts on
deposit in those accounts and Eligible Investments of amounts in deposit in
those accounts;

                  (xi)     the Issuer's rights under the Sale and Servicing
Agreement; and

                  (xii)    all proceeds of the foregoing.

                  Such grant shall include all rights, powers and options (but
none of the obligations) of the Issuer, including the immediate and continuing
right to claim for, collect, receive and give receipt for principal and interest
payments in respect of the Collateral and all other moneys payable thereunder,
to give and receive notices and other communications, to make waivers or other
agreements, to exercise all rights and options, to bring proceedings in the name
of the Issuer or otherwise and generally to do and receive anything that the
Issuer is or may be entitled to do or receive thereunder or with respect
thereto.

                  The Indenture Trustee hereby acknowledges such grant, accepts
the trusts under this Indenture in accordance with the provisions of this
Indenture and agrees to perform its duties required in this Indenture to the
best of its ability to the end that the interests of the parties and the Holders
of the Notes and the Class A Insurer, recognizing the priorities of their
respective interests, may be adequately and effectively protected.

                  The Indenture Trustee, solely in its capacity as the named
secured party or assignee of secured party on financing statements naming the
Credit Acceptance, the Seller or the Issuer as debtor or seller, acknowledges
that in that capacity it is acting as a representative, within the meaning of
Section 9-502(a)(2) of the UCC, for itself, the Trust Collateral Agent, the
Class A Noteholders, Class A Insurer, Issuer and the Seller, to the extent and
as their interests as secured parties with security interests in the collateral
indicated on such financing statements may be.

                  It is the intention of the Issuer and the Indenture Trustee
that this grant constitutes a grant or assignment of a valid, first priority
security interest in the Issuer's rights in the Collateral, free and clear of
all Liens (other than the security interest granted herein) to the Indenture
Trustee. This Agreement shall be deemed to create a security interest and deemed
to be a security agreement with respect to the Collateral within the meaning of
Article 1, Article 8 and Article 9 of the Uniform Commercial Code as in effect
in the States of New York and Michigan and under the law of all jurisdictions
governing the creation and perfection of security interests in the Collateral.

                                   ARTICLE I
                   Definitions and Incorporation by Reference

                  SECTION 1.1 Definitions.

                  (a)      Except as otherwise specified herein, the following
terms have the respective meanings set forth below for all purposes of this
Indenture.

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                  (b)      Capitalized terms used herein and not otherwise
defined herein shall have the meanings assigned to them in the Sale and
Servicing Agreement or the Trust Agreement.

                  "Act" has the meaning specified in Section 11.3(a).

                  "Affiliate" means, with respect to any specified Person, any
other Person controlling or controlled by or under common control with such
specified Person. For the purposes of this definition, "control" when used with
respect to any specified Person means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership
of voting securities, by contract or otherwise; and the terms "controlling" and
"controlled" have meanings correlative to the foregoing. A Person shall not be
deemed to be an Affiliate of any person solely because such other Person has the
contractual right or obligation to manage such Person unless such other Person
controls such Person through equity ownership or otherwise.

                  "Authorized Officer" means, with respect to the Issuer, any
officer or agent acting pursuant to a power of attorney of the Owner Trustee or,
with respect to the Servicer, any officer or agent of the Servicer, and who is
identified on the list of Authorized Officers delivered by each of the Owner
Trustee and the Servicer to the Indenture Trustee, the Backup Servicer and the
Class A Insurer on the Closing Date (as such list may be modified or
supplemented from time to time thereafter).

                  "Backup Servicer" means Systems and Services Technologies,
Inc. (the "Backup Servicer" or "SST").

                  "Backup Servicing Agreement" means the Backup Servicing
Agreement, dated as of June 27, 2003, among the Backup Servicer, the Servicer,
the Class A Insurer, the Trust, the Seller and the Trust Collateral Agent, as
amended, modified or supplemented from time to time, in accordance with its
terms.

                  "Basic Documents" has the meaning set forth in the Sale and
Servicing Agreement.

                  "Business Day" means any day other than a Saturday, a Sunday
or a day on which banking institutions or trust companies located in Detroit,
Michigan or New York, New York are authorized or obligated by law, executive
order, or governmental decree to be closed.

                  "Certificate of Trust" means the certificate of trust of the
Issuer substantially in the form of Exhibit B to the Trust Agreement.

                  "Class A Insurer" means Radian Asset Assurance Inc., or its
successor in interest.

                  "Class A Note Insurance Policy" means the note guaranty
insurance policy issued by the Class A Insurer to the Indenture Trustee for the
benefit of the Class A Noteholders with respect to the Class A Notes, including
any endorsements thereto.

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                  "Class A Termination Date" means the date on which all amounts
owing to the Class A Noteholders and, as certified in writing by the Class A
Insurer to the Owner Trustee, all amounts owing to the Class A Insurer under the
Basic Documents are paid in full.

                  "Class A Notes" means the 2.77% Class A Asset Backed Notes of
the Issuer, substantially in the form of Exhibit A hereto.

                  "Class A Note Rate" means 2.77% per annum (computed on the
basis of a 360-day year of twelve 30-day months and assuming the Distribution
Date is on the 15th of each month).

                  "Clearing Agency" means the Depository Trust Company or its
successor, which shall be an organization registered as a "clearing agency"
pursuant to Section 17A of the Securities Exchange Act of 1934, as amended.

                  "Clearing Agency Participant" means the Depository Trust
Company, and its successors, each of which shall be a broker, dealer, bank or
other financial institution or other Person for whom from time to time a
Clearing Agency effects book-entry transfers and pledges of securities deposited
with the Clearing Agency.

                  "Closing Date" means June 27, 2003.

                  "Code" means the Internal Revenue Code of 1986, as amended
from time to time, and treasury regulations promulgated thereunder.

                  "Collateral" has the meaning set forth in Granting Clause.

                  "Control Party" means: (i) prior to the Class A Termination
Date, so long as no Class A Insurer Default has occurred and is continuing, the
Class A Insurer; and (ii) otherwise, the Majority Noteholders.

                  "Corporate Trust Office" means the principal corporate trust
office of the Indenture Trustee, which at time of execution of this Indenture is
located at 4 New York Plaza, 6th Floor, New York, NY 10004, Attention:
Institutional Trust Services/Structured Finance or at such other address as the
Indenture Trustee may designate from time to time by notice to the Class A
Noteholders, the Servicer, the Class A Insurer and the Issuer, or the principal
corporate trust office of any successor Indenture Trustee (the address of which
the successor Indenture Trustee will notify the Class A Noteholders, the Class A
Insurer and the Issuer).

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

                  "Excluded Dealer Agreement Rights" means, with respect to any
Dealer Agreement listed on Schedule A to the Sale and Servicing Agreement, or
listed on any addendum thereto, the rights of Credit Acceptance thereunder
related to loans made to the related Dealer which are not Dealer Loans owned by
the Issuer, including rights of set-off and rights of indemnification, related
to such loans.

                                     - 4 -

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

                  "Indebtedness" means, with respect to any Person at any time,
(a) indebtedness or liability of such Person for borrowed money whether or not
evidenced by bonds, debentures, notes or other instruments, or for the deferred
purchase price of property or services (including trade obligations); (b)
obligations of such Person as lessee under leases which should have been or
should be, in accordance with generally accepted accounting principles, recorded
as capital leases; (c) current liabilities of such Person in respect of unfunded
vested benefits under plans covered by Title IV of ERISA; (d) obligations issued
for or liabilities incurred on the account of such Person; (e) obligations or
liabilities of such Person arising under acceptance facilities; (f) obligations
of such Person under any guarantees, endorsements (other than for collection or
deposit in the ordinary course of business) and other contingent obligations to
purchase, to provide funds for payment, to supply funds to invest in any Person
or otherwise to assure a creditor against loss; (g) obligations of such Person
secured by any lien on property or assets of such Person, whether or not the
obligations have been assumed by such Person; provided that the amount of such
indebtedness if not so assumed shall in no event be deemed to be greater than
the fair market value from time to time (as reasonably determined in good faith
by the Issuer) of the property subject to such lien; or (h) obligations of such
Person under any interest rate or currency exchange agreement.

                  "Indenture" means this Indenture as amended and supplemented
from time to time.

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

                  "Indenture Event of Default" has the meaning given such term
in Section 5.1 herein.

                  "Indenture Trustee" means JPMorgan Chase Bank, a New York
banking corporation, not in its individual capacity but as trustee under this
Indenture, or any successor trustee under this Indenture.

                  "Independent" means, when used with respect to any specified
Person, that the Person (a) is in fact independent of the Issuer, the
Originator, any other obligor upon the Class A Notes, the Seller and any
Affiliate of any of the foregoing Persons, (b) does not have any direct
financial interest or any material indirect financial interest in the Issuer,
the Originator, any such other obligor, the Seller or any Affiliate of any of
the foregoing Persons and (c) is not connected with the Issuer, the Originator,
any such other obligor, the Seller or any Affiliate of any of the foregoing
Persons as an officer, employee, promoter, underwriter, trustee, partner,
director or Person performing similar functions.

                  "Independent Certificate" means a certificate or opinion to be
delivered to the Indenture Trustee and the Class A Insurer under the
circumstances described in, and otherwise

                                     - 5 -

<PAGE>

complying with, the applicable requirements of Section 11.1, prepared by an
Independent appraiser or other expert appointed by an Issuer Order and approved
by the Indenture Trustee, and prior to the Class A Termination Date, the Class A
Insurer, in the exercise of reasonable care, which opinion or certificate shall
state that the signer has read the definition of "Independent" in this Indenture
and that the signer is Independent within the meaning thereof.

                  "Issuer" means the party named as such in this Indenture until
a successor replaces it and, thereafter, means the successor and, for purposes
of any provision contained herein, each other obligor on the Class A Notes.

                  "Issuer Order" and "Issuer Request" means a written order or
request signed in the name of the Issuer by any one of its Authorized Officers
and delivered to the Indenture Trustee a copy of which shall be delivered to the
Class A Insurer.

                  "Issuer Secured Obligations" means all amounts and obligations
which the Issuer may at any time owe to or on behalf of the Class A Insurer and
the Indenture Trustee for the benefit of the Indenture Trustee and the Class A
Noteholders under this Indenture, the Class A Notes or the other Basic
Documents.

                  "Majority Noteholders" means the Holders of a majority by
principal amount of the outstanding Class A Notes.

                  "Moody's" means Moody's Investors Service, Inc. and its
successors and assigns.

                  "Note" means a Class A Note.

                  "Note Owner" means, with respect to any Note registered in the
name of the Clearing Agency or its nominee, the Person who is the beneficial
owner of such Class A Note, as reflected on the books of the Clearing Agency
(directly as a Clearing Agency Participant or as an indirect participant, in
each case in accordance with the rules of such Clearing Agency).

                  "Note Register" and "Note Registrar" mean the register
maintained and the registrar appointed pursuant to Section 2.3 hereof.

                  "Noteholder", "Holder" or "Class A Noteholder" means the
Person in whose name a Class A Note shall be registered in the Note Register,
except that, solely for the purposes of giving any consent, waiver, request, or
demand pursuant to the Basic Documents, the interest evidenced by any Class A
Note registered in the name of the Seller, the Servicer, or any person
controlling, controlled by, or under common control with the Seller or the
Servicer, shall not be taken into account in determining whether the requisite
percentage necessary to effect any such consent, waiver, request, or demand
shall have been obtained.

                  "Officer's Certificate" means a certificate signed by any
Authorized Officer of the Owner Trustee, under the circumstances described in,
and otherwise complying with, the applicable requirements of Section 11.1
hereof.

                  "Opinion of Counsel" means one or more written opinions of
counsel who may, except as otherwise expressly provided in this Indenture, or as
otherwise required by the

                                     - 6 -

<PAGE>

Indenture Trustee or the Class A Insurer, be employees of or counsel to the
Issuer and who shall be reasonably satisfactory to the Indenture Trustee and the
Class A Insurer, and which shall comply with any applicable requirements of
Section 11.1 hereof, and shall be in form and substance reasonably satisfactory
to the Indenture Trustee and the Class A Insurer.

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

                           (i)      Class A Notes theretofore canceled by the
         Note Registrar or delivered to the Note Registrar for cancellation;

                           (ii)     Class A Notes or portions thereof the
         payment for which money in the necessary amount has been theretofore
         deposited with the Indenture Trustee or any Paying Agent in trust for
         the Holders of such Notes (provided, however, that if such Class A
         Notes are to be redeemed, notice of such redemption has been duly given
         pursuant to this Indenture); and

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

provided, however, that (x) in determining whether the Holders of the requisite
Outstanding Amount of the Class A Notes have given any request, demand,
authorization, direction, notice, consent or waiver hereunder or under any Basic
Document, Class A Notes owned by the Issuer, the Servicer, any other obligor
upon the Class A Notes, the Seller or any Affiliate of any of the foregoing
Persons shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Indenture Trustee shall be fully protected in relying
upon any such request, demand, authorization, direction, notice, consent or
waiver, only Class A Notes that a Responsible Officer of the Indenture Trustee
either actually knows to be so owned or has received written notice thereof
shall be so disregarded; provided, further, however, that Class A Notes which
have been paid with proceeds of the Class A Note Insurance Policy shall continue
to remain outstanding until the Class A Insurer has been paid as subrogee
hereunder or reimbursed pursuant to the Insurance Agreement delivered to the
Indenture Trustee, and the Class A Insurer shall be deemed to be the Holder
thereof to the extent of any payments thereon made by the Class A Insurer. Class
A Notes so owned that have been pledged in good faith may be regarded as
Outstanding if the pledgee establishes to the satisfaction of the Indenture
Trustee the pledgees right so to act with respect to such Notes and that the
pledgee is not the Issuer, any other obligor upon the Class A Notes, the Seller
or any Affiliate of any of the foregoing Persons and (y) to the extent that the
Indenture Trustee is a Class A Noteholder, Class A Notes owned by the Indenture
Trustee shall be disregarded for purposes of Section 6.8(b) hereof.

                  "Outstanding Amount" means the aggregate principal amount of
all Class A Notes Outstanding at the date of determination.

                  "Paying Agent" means the Indenture Trustee or any other Person
that meets the eligibility standards for the Indenture Trustee specified in
Section 6.12 and is authorized by the

                                     - 7 -

<PAGE>

Issuer to make the payments to and distributions from the Collection Account,
the Note Distribution Account, the Reserve Account, the Principal Distribution
Account and the Certificate Distribution Account including payment of principal
of or interest on the Class A Notes on behalf of the Issuer.

                  "Predecessor Note" means, with respect to any particular Class
A Note, every previous Class A Note evidencing all or a portion of the same debt
as that evidenced by such particular Class A Note; and, for the purpose of this
definition, any Class A Note authenticated and delivered under Section 2.4 in
lieu of a mutilated, lost, destroyed or stolen Class A Note shall be deemed to
evidence the same debt as the mutilated, lost, destroyed or stolen Class A Note.

                  "Private Placement Memorandum" means the confidential private
placement memorandum, relating to the Class A Notes, dated June 17, 2003.

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

                  "Rating Agency" means S&P or any other nationally recognized
statistical rating agency requested by the Seller or an Affiliate thereof, and
acceptable to the Class A Insurer, to rate the Class A Notes.

                  "Rating Agency Condition" means, with respect to any action,
that the Rating Agency shall have been given 10 days (or such shorter period as
shall be acceptable to the Rating Agency) prior notice thereof and that such
Rating Agency shall have notified the Seller, the Servicer, the Indenture
Trustee, the Owner Trustee, the Class A Insurer and the Issuer that such action
will not result in a reduction or withdrawal of the then current rating of the
Class A Notes, without regard to the Class A Note Insurance Policy.

                  "Record Date" means, with respect to a Distribution Date, (i)
if the Class A Notes are held in book-entry form, the day immediately preceding
such Distribution Date; or (ii) if the Class A Notes are held in definitive
form, the last day of the calendar month preceding such Distribution Date.

                  "Redemption Date" means, in the case of a redemption of the
Class A Notes pursuant to Section 10.1(a) hereof, the Distribution Date
specified by the Servicer or the Issuer pursuant to Section 10.1(a) hereof.

                  "Redemption Price" means in the case of a redemption of the
Class A Notes pursuant to Section 10.1(a) hereof an amount equal to the unpaid
principal amount of the outstanding Class A Notes being redeemed plus accrued
and unpaid interest thereon to but excluding the Redemption Date plus all
amounts due to the Class A Insurer, the Indenture Trustee, the Backup Servicer
and the Owner Trustee under the Basic Documents.

                  "Related Security" means the property described in clauses
(ii) through (xii) of the Granting Clause.

                                     - 8 -

<PAGE>

                  "Required Long-Term Debt Rating" shall be a rating on
long-term unsecured debt obligations of "Aa3" by Moody's and "AA-" by S&P (or
other equivalent rating by a nationally recognized rating agency), and any
requirement that long-term unsecured debt obligations have the "Required
Long-Term Debt Rating" shall mean that such long-term unsecured debt obligations
have the foregoing required rating.

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

                  "Rule 144A" means Rule 144A of the Securities Act.

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

                  "Sale and Servicing Agreement" means the Sale and Servicing
Agreement dated as of June 27, 2003, among the Issuer, the Seller, the Servicer,
the Trust Collateral Agent/Indenture Trustee and the Backup Servicer, as the
same may be amended or supplemented from time to time in accordance with its
terms.

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

                  "Servicer Default" has the meaning given such term in Section
8.01 of the Sale and Servicing Agreement.

                  "State" means any state or commonwealth of the United States
of America or the District of Columbia.

                  "Subsidiary" means, with respect to any Person, any
corporation or other Person (a) of which securities or other ownership interests
having ordinary voting power to elect a majority of the board of directors or
other Persons performing similar functions are at the time directly or
indirectly owned by such Person or (b) that is directly or indirectly controlled
by such Person within the meaning of control under Section 15 of the Securities
Act.

                  "Termination Date" means the later of: (i) the expiration of
the Class A Note Policy in accordance with its terms and the return thereof to
the Class A Insurer for cancellation and (ii) the date on which the Indenture
Trustee and the Class A Insurer shall have received payment and performance of
all Issuer Secured Obligations.

                  "Trust Collateral Agent" means, initially, JPMorgan Chase
Bank, in its capacity as collateral agent on behalf of the Indenture Trustee for
the benefit of the Class A Noteholders and the Class A Insurer, including its
successors-in-interest, until and unless a successor Person

                                     - 9 -

<PAGE>

shall have become the Trust Collateral Agent pursuant to the Sale and Servicing
Agreement, and thereafter "Trust Collateral Agent" shall mean such successor
Person.

                  "Trust Property" has the meaning set forth in the Trust
Agreement.

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

                  SECTION  1.2. Rules of Construction.

                  Unless the context otherwise requires:

                           (i)      a term has the meaning assigned to it;

                           (ii)     an accounting term not otherwise defined has
         the meaning assigned to it in accordance with generally accepted
         accounting principles as in effect from time to time;

                           (iii)    "or" is not exclusive;

                           (iv)     "including" means including without
         limitation; and

                           (v)      words in the singular include the plural and
         words in the plural include the singular.

                                   ARTICLE II

                                    The Notes

                  SECTION 2.1. Form.

The Class A Notes together with the Indenture Trustee's certificate of
authentication, shall be in definitive registered form in substantially the form
set forth in Exhibit A hereto, with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this
Indenture and may have such letters, numbers or other marks of identification
and such legends or endorsements placed thereon as may, consistently herewith,
be determined by the officers executing such Class A Notes, as evidenced by
their execution of the Class A Notes. Any portion of the text of any Class A
Note may be set forth on the reverse thereof, with an appropriate reference
thereto on the face of the Class A Note.

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

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

                                     - 10 -

<PAGE>

                  SECTION 2.2. Execution, Authentication and Delivery.

The Class A Notes shall be executed on behalf of the Issuer by any of the
Authorized Officers of the Owner Trustee. The signature of any such Authorized
Officer on the Class A Notes may be manual or facsimile.

                  Class A Notes bearing the manual or facsimile signature of
individuals who were at any time Authorized Officers of the Issuer shall bind
the Issuer, notwithstanding that such individuals or any of them have ceased to
hold such offices prior to the authentication and delivery of such Class A Notes
or did not hold such offices at the date of such Class A Notes.

                  The Indenture Trustee shall upon receipt of the Issuer Order
authenticate and deliver the Class A Notes for original issue in an aggregate
principal amount of $100,000,000. The aggregate outstanding principal balance of
the Class A Notes at any time may not exceed such amount.

                  Each Class A Note shall be dated the date of its
authentication. The Class A Notes shall be issuable as registered Class A Notes
in the minimum denomination of $100,000 and integral multiples of $1,000
thereafter.

                  It is intended that the Class A Notes be registered so as to
participate in a book-entry system with the Clearing Agency as set forth herein.
The Class A Notes shall be initially issued in the form of a single
fully-registered note with a denomination equal to the original principal
balance of the Class A Notes. Upon initial issuance, the ownership of such Notes
shall be registered in the Note Register in the name of Cede & Co., or any
successor thereto, as nominee for the Clearing Agency.

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

                  SECTION 2.3. Registration of Transfer and Exchange of Class A
Notes.

                  (a)      The Note Registrar shall keep or cause to be kept, at
the office or agency maintained pursuant to Section 2.7, a Note Register in
which, subject to such reasonable regulations as it may prescribe, the Indenture
Trustee shall provide for the registration of Notes and of transfers and
exchanges of Class A Notes as herein provided. The Indenture Trustee shall be
the initial Note Registrar. In the event that, subsequent to the Closing Date,
the Indenture Trustee notifies the Seller and the Class A Insurer that it is
unable to act as Note Registrar, the Seller shall appoint another bank or trust
company, having an office or agency located in the Borough of Manhattan, The
City of New York, agreeing to act in accordance with the provisions of this
Indenture applicable to it, and otherwise acceptable to the Indenture Trustee,
and, prior to the Class A Termination Date, the Class A Insurer, to act as
successor Note Registrar under this Indenture. If at any time the Indenture
Trustee is not the Note Registrar, the Note Registrar shall make available to
the Indenture Trustee ten (10) days prior to each Distribution Date and at such

                                     - 11 -

<PAGE>

other times as the Indenture Trustee may reasonably request the names and
addresses of the Holders as they appear in the Note Register.

                  No sale, pledge or other transfer of a Class A Note shall be
made unless such sale, pledge or other transfer is (A) pursuant to an effective
registration statement under the Securities Act, (B) for so long as the Class A
Notes are eligible for resale pursuant to Rule 144A to a Person the transferor
reasonably believes after due inquiry is a "qualified institutional buyer" as
defined in Rule 144A that purchases for its own account or for the account of a
qualified institutional buyer to whom notice is given that the transfer is being
made in reliance on Rule 144A, or (C) pursuant to another available exemption
from the registration requirements of the Securities Act, the Investment Company
Act of 1940, as amended and any applicable state securities and blue sky laws or
is made in accordance with said Act and state laws. The Indenture Trustee may
require an opinion of counsel to be delivered to it in connection with any
transfer of the Class A Notes pursuant to clauses (A) or (C) above.

                  Under no circumstances may an institutional "accredited
investor" within Regulation D of the Securities Act take delivery in the form of
a beneficial interest in a book-entry Class A Note if such purchaser is not a
"qualified institutional buyer" as defined under Rule 144A under the Securities
Act.

                  If definitive Class A Notes are issued, the Class A Notes may
not be transferred, directly or indirectly, to any Person unless (A) the
transferee of the Class A Note certifies in a certificate to the Issuer and the
Indenture Trustee that such Person is a "qualified institutional buyer" as
defined in Rule 144A or (B) the transferee of the Class A Note delivers to the
Indenture Trustee and the Issuer an opinion of counsel that such transfer is
permitted pursuant to clause (A) or (C) above.

                  All opinions of counsel required in connection with any
transfer shall be by counsel reasonably acceptable to the Indenture Trustee.

                  The transferee of each Class A Note shall be deemed to
represent and warrant that, with respect to the source of funds to be used by
such transferee to acquire this Class A Note (the "Source") either (a) such
Source is not an "employee benefit plan" (within the meaning of Section 3(3) of
ERISA), a "plan" (within the meaning of Section 4975(e)(1) of the Code) or a
plan that is subject to any substantially similar provision of any federal,
state or local law, or a person using assets of any such plan, or (b) the
acquisition and holding of the Class A Notes by such Source will not constitute
or result in a nonexempt prohibited transaction under Section 406 of ERISA,
Section 4975 of the Code or any substantially similar provision of any federal,
state or local law.

                  Neither the Issuer nor the Indenture Trustee is obligated to
register the Class A Notes under the Securities Act or any other securities law.
Any transfer in violation of the provisions of this Section 2.3 shall be void ab
initio.

                  (b)      If an election is made to hold Class A Notes in
book-entry form, the Class A Notes shall be registered in the name of a nominee
designated by the Clearing Agency (and

                                     - 12 -

<PAGE>

may be aggregated as to denominations with other Class A Notes held by the
Clearing Agency). With respect to Class A Notes held in book-entry form:

                  (i)      the Note Registrar, the Class A Insurer, the Trust
         Collateral Agent and the Indenture Trustee will be entitled to deal
         with the Clearing Agency for all purposes of this Indenture (including
         the payment of principal of and interest on the Class A Notes and the
         giving of instructions or directions hereunder) as the sole holder of
         the Class A Notes, and shall have no obligation to the Note Owners;

                  (ii)     the rights of Note Owners will be exercised only
         through the Clearing Agency and will be limited to those established by
         law and agreements between such Note Owners and the Clearing Agency
         and/or the Clearing Agency Participants pursuant to the Depository
         Agreement;

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

                  (iv)     without the consent of the Seller and the Indenture
         Trustee, no such Class A Note may be transferred by the Clearing Agency
         except to a successor Clearing Agency that agrees to hold such Note for
         the account of the Note Owners or except upon the election of the Note
         Owner thereof or a subsequent transferee to hold such Class A Note in
         physical form.

               None of the Indenture Trustee, the Note Registrar or the Class A
Insurer shall have any responsibility to monitor or restrict the transfer of
beneficial ownership in any Note an interest in which is transferable through
the facilities of the Clearing Agency.

               If (i)(A) the Issuer advises the Indenture Trustee in writing
that the Clearing Agency is no longer willing or able to properly discharge its
responsibilities with respect to the Class A Notes as described in the
Depository Agreement and (B) the Issuer is unable to locate a qualified
successor, (ii) the Issuer at its option advises the Indenture Trustee in
writing that it elects to terminate the book-entry system through the Clearing
Agency, or (iii) Note Owners representing beneficial interests in Class A Notes
aggregating not less than a majority of the Class A Note Balance advise the
Indenture Trustee and the Clearing Agency through the Clearing Agency
Participants in writing that the continuation of a book-entry system through the
Clearing Agency with respect to such class is no longer in the best interests of
the related Note Owners, then the Indenture Trustee shall notify all such Note
Owners, through the Clearing Agency, and the Class A Insurer of the occurrence
of any such event and of the availability of definitive Class A Notes to such
Note Owners requesting the same. Upon surrender to the Indenture Trustee of the
related Class A Notes by the Clearing Agency accompanied by registration
instructions from the Clearing Agency, the Indenture Trustee shall issue
definitive

                                     - 13 -

<PAGE>

Class A Notes and deliver such definitive Notes in accordance with the
'instructions of the Clearing Agency. None of the Issuer, the Note Registrar,
the Class A Insurer, or the Indenture Trustee shall be liable for any delay in
delivery of such instructions and may conclusively rely on, and shall be
protected in relying on, such instructions. Upon the issuance of definitive
Class A Notes, the Indenture Trustee shall recognize the Holders of the
definitive Class A Notes as Noteholders hereunder. The Indenture Trustee shall
not be liable if the Seller is unable to locate a qualified successor Clearing
Agency.

                  (c)      In order to preserve the exemption for resales and
transfers provided by Rule 144A, the Issuer shall provide to any Holder of a
Class A Note and any prospective purchaser designated by such Holder, upon
request of such Holder or such prospective purchaser, such information required
by Rule 144A as will enable the resale of such Class A Note to be made pursuant
to Rule 144A. The Servicer and the Indenture Trustee shall cooperate with the
Issuer in providing the Issuer such information regarding the Class A Notes, the
Collateral and other matters regarding the Trust as the Issuer shall reasonably
request to meet its obligations under the preceding sentence.

                  (d)      Upon surrender for registration of transfer of any
Class A Note at the Corporate Trust Office, the Indenture Trustee shall, subject
to Section 2.3(a), authenticate, and deliver, in the name of the designated
transferee or transferees, one or more new Class A Notes in authorized
denominations of a like aggregate amount dated the date of authentication by the
Indenture Trustee. At the option of a Holder, Class A Notes may be exchanged for
other Class A Notes of authorized denominations of a like aggregate amount upon
surrender of the Class A Notes to be exchanged at the Corporate Trust Office.

                  (e)      Every Class A Note presented or surrendered for
registration of transfer or exchange shall be accompanied by a written
instrument of transfer in form satisfactory to the Indenture Trustee and the
Note Registrar duly executed by the Holder or his attorney duly authorized in
writing. Each Class A Note surrendered for registration of transfer or exchange
shall be cancelled and subsequently disposed of by the Indenture Trustee in
accordance with its customary practice.

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

                  (g)      Subject to Article IX hereof, the Class A Notes and
this Indenture may be amended or supplemented from time to time, prior to the
Class A Termination Date, with the consent of the Class A Insurer, but without
the consent of any of the Class A Noteholders, to modify restrictions on and
procedures for resale and other transfers of the Class A Notes to reflect any
change in applicable law or regulations (or the interpretation thereof) or
practices relating to the resale or transfer of restricted securities generally.

                                     - 14 -

<PAGE>

                  SECTION 2.4. Mutilated, Destroyed, Lost, or Stolen Notes.

If (a) any mutilated Class A Note shall be surrendered to the Note Registrar, or
if the Note Registrar shall receive evidence to its satisfaction of the
destruction, loss, or theft of any Class A Note and (b) there shall be delivered
to the Note Registrar, the Class A Insurer, the Issuer and the Indenture Trustee
such security or indemnity (an unsecured indemnity agreement of a Class A
Noteholder with a net worth at least equal to $200,000,000 containing terms
reasonably satisfactory to the Indenture Trustee and the Class A Insurer being
sufficient for such security or indemnity requirement), as may be required by
them to save each of them and the Issuer harmless, then in the absence of notice
that such Note shall have been acquired by a bona fide purchaser, the Owner
Trustee on behalf of the Issuer shall execute and the Indenture Trustee shall
authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost, or stolen Class A Note, a new Class A Note of like tenor and
denomination. In connection with the issuance of any new Class A Note under this
Section, the Indenture Trustee and the Note Registrar may require the payment of
a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection therewith. The Indenture Trustee may charge such Holder
for its expenses (including without limitation the fees and expenses of its
counsel) in replacing a Class A Note. Any duplicate Class A Note issued pursuant
to this Section shall constitute conclusive evidence of ownership of such Class
A Note, as if originally issued, whether or not the lost, stolen, or destroyed
Class A Note shall be found at any time.

                  SECTION 2.5. Persons Deemed Owners.

The Issuer, the Indenture Trustee, the Trust Collateral Agent, the Note
Registrar and any agent of the Issuer, the Indenture Trustee or the Note
Registrar may treat the Person in whose name any Class A Note shall be
registered as the owner of such Class A Note for the purpose of receiving
distributions pursuant to Section 5.08 of the Sale and Servicing Agreement and
Section 5.2 hereof and for all other purposes whatsoever, and neither the
Issuer, the Indenture Trustee, the Trust Collateral Agent, the Class A Insurer
nor the Note Registrar nor any such agent shall be bound by any notice to the
contrary.

                  SECTION 2.6. Access to List of Noteholders' Names and
Addresses.

The Indenture Trustee shall furnish or cause to be furnished to the Servicer or
the Class A Insurer, within 15 days after receipt by the Indenture Trustee of a
request therefor from the Servicer or the Class A Insurer in writing, a list, in
such form as the Servicer or the Class A Insurer may reasonably require, of the
names and addresses of the Class A Noteholders as of the most recent Record
Date. If three or more Class A Noteholders, or one or more Holders of Notes
aggregating not less than 10% of the Class A Note Balance, apply in writing to
the Indenture Trustee, and such application states that the applicants desire to
communicate with other Noteholders with respect to their rights under this
Indenture or under the Class A Notes and such application shall be accompanied
by a copy of the communication that such applicants propose to transmit, then
the Indenture Trustee shall, within five Business Days after the receipt of such
application, make available to such Class A Noteholders access during normal
business hours to the current list of Class A Noteholders. Each Holder, by
receiving and holding a Class A Note, shall be deemed to have agreed to hold
neither the Servicer, the Class A Insurer nor the Indenture

                                     - 15 -

<PAGE>

Trustee accountable by reason of the disclosure of its name and address,
regardless of the source from which such information was derived.

                  SECTION 2.7. Maintenance of Office or Agency.

The Indenture Trustee shall maintain in New York, New York, an office or offices
or agency or agencies where Class A Notes may be surrendered for registration of
transfer or exchange and an office in New York, New York, where notices and
demands to or upon the Indenture Trustee in respect of the Class A Notes and
this Indenture may be served. The Indenture Trustee initially designates the
Corporate Trust Office as specified in this Indenture as its office for such
purposes. The Indenture Trustee shall give prompt written notice to the
Servicer, the Class A Insurer and to Class A Noteholders of any change in the
location of the Note Register or any such office or agency.

                  SECTION 2.8. Payment of Principal and Interest; Defaulted
Interest.

                  (a)      The Class A Notes shall accrue interest as provided
in the form of the Class A Note set forth in Exhibit A hereto and such interest
shall be due and payable on each Distribution Date as specified therein. Any
installment of interest or principal, if any, payable on any Class A Note which
is punctually paid or duly provided for by the Issuer on the applicable
Distribution Date or on the Stated Final Maturity shall be paid as set forth in
Section 5.09(a) of the Sale and Servicing Agreement.

                  (b)      The principal of each Class A Note shall be payable
in installments on each Distribution Date as provided in the form of the Class A
Note set forth in Exhibit A hereto. Notwithstanding the foregoing, the entire
unpaid principal amount of the Class A Notes, and all accrued interest thereon,
shall become due and payable, if not previously paid, upon the acceleration
thereof after the occurrence of an Indenture Event of Default in the manner
provided in Section 5.2. All principal payments on the Class A Notes shall be
made as provided in Section 5.2 and in Section 5.09(a) of the Sale and Servicing
Agreement, as applicable. Upon written notice from the Issuer, the Indenture
Trustee shall notify the Person in whose name a Class A Note is registered at
the close of business on the Record Date preceding the Distribution Date on
which the Issuer expects that the final installment of principal of and interest
on such Class A Note will be paid. Such notice shall be mailed or transmitted by
facsimile prior to such final Distribution Date and shall specify that such
final installment will be payable only upon presentation and surrender of such
Class A Note and shall specify the place where such Class A Note may be
presented and surrendered for payment of such installment. Notices in connection
with redemptions of Class A Notes shall be mailed to Noteholders as provided in
Section 10.2.

                  (c)      If the Issuer defaults in a payment of interest on
the Class A Notes, such defaulted interest shall itself bear interest (to the
extent lawful) at the Class A Note Rate. Such defaulted interest (and such
interest thereon) shall be paid on subsequent Distribution Dates pursuant to
Section 5.09 of the Sale and Servicing Agreement, or as otherwise set forth
below.

                  SECTION 2.9. Release of Collateral.

The Indenture Trustee shall, on or after the Termination Date, release and shall
cause the Trust Collateral Agent to release any remaining portion of the Trust
Property from the lien created by

                                     - 16 -

<PAGE>

this Indenture and shall cause the Trust Collateral Agent to deposit in the
Collection Account any funds then on deposit in any other Trust Account. The
Indenture Trustee shall release property from the lien created by this Indenture
pursuant to this Section only upon receipt by the Indenture Trustee and the
Class A Insurer of an Issuer Request accompanied by an Officer's Certificate and
an Opinion of Counsel meeting the applicable requirements of Section 11.1.

                                  ARTICLE III

                    Covenants, Representations and Warranties

                  SECTION 3.1. Payment of Principal and Interest.

The Issuer will duly and punctually pay the principal of and interest on the
Class A Notes in accordance with the terms of the Class A Notes and this
Indenture. Without limiting the foregoing and in accordance with the terms set
forth in Section 5.09(a) of the Sale and Servicing Agreement, the Issuer will
cause to be distributed to the Class A Noteholders all amounts on deposit in the
Note Distribution Account on each Distribution Date deposited therein pursuant
to the Sale and Servicing Agreement for the benefit of the Class A Notes, to the
Class A Noteholders. Amounts properly withheld under the Code by any Person from
a payment to any Class A Noteholder of interest and/or principal shall be
considered as having been paid by the Issuer to such Class A Noteholder for all
purposes of this Indenture.

                  SECTION 3.2. Maintenance of Office or Agency.

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

                  SECTION 3.3. Money for Payments to be Held in Trust.

On or before each Distribution Date and Redemption Date, the Issuer shall
deposit or cause to be deposited in the Note Distribution Account from the
Collection Account, a sum sufficient to pay the amounts then becoming due under
the Class A Notes, such sum to be held in trust for the benefit of the Persons
entitled thereto and (unless the Paying Agent is the Indenture Trustee) shall
promptly notify the Indenture Trustee of its action or failure so to act.

                  The Issuer will cause each Paying Agent other than the
Indenture Trustee to execute and deliver to the Indenture Trustee and the Class
A Insurer an instrument in which such Paying Agent shall agree with the
Indenture Trustee (and if the Indenture Trustee acts as Paying Agent, it hereby
so agrees), subject to the provisions of this Section, that such Paying Agent
will:

                                     - 17 -

<PAGE>

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

                  (ii)     give the Indenture Trustee and the Class A Insurer
         written notice of any default by the Issuer of which a Responsible
         Officer has actual knowledge (or any other obligor upon the Class A
         Notes) in the making of any payment required to be made with respect to
         the Class A Notes;

                  (iii)    at any time during the continuance of any such
         default, upon the written request of the Indenture Trustee, or, prior
         to the Class A Termination Date, the Class A Insurer, forthwith pay to
         the Indenture Trustee all sums so held in trust by such Paying Agent;

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

                  (v)      comply with all requirements of the Code with respect
         to the withholding from any payments made by it on any Class A Notes of
         any applicable withholding taxes imposed thereon and with respect to
         any applicable reporting requirements in connection therewith in each
         case, as instructed by the Issuer.

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

               Subject to applicable laws with respect to the escheat of funds,
any money held by the Indenture Trustee or any Paying Agent in trust for the
payment of any amount due with respect to any Class A Note and remaining
unclaimed for two years after such amount has become due and payable shall be
discharged from such trust and be paid to the Issuer on Issuer Request, with the
written consent of the Class A Insurer if the Class A Termination Date has not
occurred; and the Holder of such Class A Note shall thereafter, as an unsecured
general creditor, look only to the Issuer for payment thereof (but only to the
extent of the amounts so paid to the Issuer), and all liability of the Indenture
Trustee or such Paying Agent with respect to such trust money shall thereupon
cease; provided, however, that the Indenture Trustee or such Paying Agent,
before being required to make any such repayment, shall at the expense of the
Issuer cause to be published once, in a newspaper published in the English
language, customarily published on each Business Day and of general circulation
in The City of New York, notice that such money remains unclaimed and that,
after a date specified therein, which shall not be less than 30 days from the
date of such publication, any unclaimed balance of such money then remaining
will be repaid to the Issuer. The Indenture Trustee shall also adopt and employ,
at the

                                     - 18 -

<PAGE>

expense of the Issuer, any other reasonable means of notification of such
repayment (including, but not limited to, mailing notice of such repayment to
Holders whose Class A Notes have been called but have not been surrendered for
redemption or whose right to or interest in moneys due and payable but not
claimed is determinable from the records of the Indenture Trustee or of any
Paying Agent, at the last address of record for each such Holder).

                  SECTION 3.4. Existence.

Except as otherwise permitted by the provisions of Section 3.10, the Issuer will
keep in full effect its existence, rights and franchises as a statutory trust
under the laws of the State of Delaware and will obtain and preserve its
qualification to do business in each jurisdiction in which such qualification is
or shall be necessary to protect the validity and enforceability of this
Indenture, the Class A Notes, the Collateral and each other instrument or
agreement included in the Trust Property.

                  SECTION 3.5. Protection of Trust Property.

The Issuer intends the security interest granted pursuant to this Indenture in
favor of the Indenture Trustee, the Class A Noteholders and the Class A Insurer
to be prior to all other liens in respect of the Trust Property, and the Issuer
shall take all actions necessary to obtain and maintain, in favor of the
Indenture Trustee, for the benefit of the Class A Noteholders and the Class A
Insurer, a first lien on and a first priority, perfected security interest in
the Trust Property. The Issuer will from time to time prepare (or shall cause to
be prepared), execute, file and deliver all such supplements and amendments
hereto and all such financing statements, continuation statements, instruments
of further assurance and other instruments, and will take such other action
necessary or advisable to:

                  (i)      grant more effectively all or any portion of the
         Trust Property;

                  (ii)     maintain or preserve the lien and security interest
         (and the priority thereof) in favor of the Indenture Trustee for the
         benefit of the Class A Noteholders and the Class A Insurer created by
         this Indenture or carry out more effectively the purposes hereof;

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

                  (iv)     enforce any of the Trust Property;

                  (v)      preserve and defend title to the Trust Property and
         the rights of the Indenture Trustee in such Trust Property against the
         claims of all persons and parties; and

                  (vi)     pay all taxes or assessments levied or assessed upon
         the Trust Property when due.

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

                                     - 19 -

<PAGE>

                  SECTION 3.6. Opinions as to Trust Property.

                  (a)      On the Closing Date, the Issuer shall furnish to the
Indenture Trustee and the Class A Insurer an Opinion of Counsel either stating
that, in the opinion of such counsel, such action has been taken with respect to
this Indenture and other requisite documents and with respect to the execution
and filing of any financing statements and continuation statements, as are
necessary to perfect and make effective the first priority lien and security
interest in favor of the Indenture Trustee, created by this Indenture and
reciting the details of such action, or stating that, in the opinion of such
counsel, no such action is necessary to make such lien and security interest
effective.

                  (b)      Within 90 days after the beginning of each calendar
year, beginning with the first calendar year beginning more than three months
after the Closing Date, the Issuer shall furnish to the Indenture Trustee and
the Class A Insurer an Opinion of Counsel either stating that, in the opinion of
such counsel, such action has been taken with respect to the recording, filing,
re-recording and refiling of this Indenture, any indentures supplemental hereto
and any other requisite documents and with respect to the filing of any
financing statements and continuation statements as are necessary to maintain
the lien and security interest created by this Indenture and reciting the
details of such action or stating that in the opinion of such counsel no such
action is necessary to maintain such lien and security interest. Such Opinion of
Counsel shall also describe the recording, filing, re-recording and refiling of
this Indenture, any indentures supplemental hereto and any other requisite
documents and the execution and filing of any financing statements and
continuation statements that will, in the opinion of such counsel, be required
to maintain the lien and security interest of this Indenture until the 90th day
to occur in the following calendar year.

                  SECTION 3.7. Performance of Obligations; Servicing of
Contracts.

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

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

                  (c)      The Issuer will punctually perform and observe all of
its obligations and agreements contained in this Indenture, the Basic Documents
and in the instruments and agreements included in the Trust Property, including,
but not limited to, preparing (or causing to be prepared) and filing (or causing
to be filed) all UCC financing statements and continuation

                                     - 20 -

<PAGE>

statements required to be filed by the terms of this Indenture and the Sale and
Servicing Agreement in accordance with and within the time periods provided for
herein and therein.

                  (d)      The Issuer shall promptly notify the Indenture
Trustee, the Class A Insurer and the Rating Agency of the occurrence of a
Servicer Default in accordance with Section 11.4 hereof, and shall specify in
such notice the action, if any, the Issuer is taking in respect of such default.
If a Servicer Default shall arise from the failure of the Servicer to perform
any of its duties or obligations under the Sale and Servicing Agreement with
respect to the Dealer Loans or Contracts, the Issuer shall take all reasonable
steps available to it to remedy such failure.

                  (e)      The Issuer agrees that it will not waive timely
performance or observance by the Servicer or the Seller of their respective
duties under the Basic Documents, (x) prior to the Class A Termination Date
without the prior written consent of the Class A Insurer, or (y) if the effect
thereof would adversely affect the Holders of the Class A Notes.

                  SECTION 3.8. Negative Covenants.

So long as any Class A Notes are Outstanding, the Issuer shall not:

                           (i)      except as expressly permitted by this
         Indenture or the Basic Documents, sell, transfer, exchange or otherwise
         dispose of any of the properties or assets of the Issuer, including
         those included in the Trust Property, unless directed to do so by the
         Class A Insurer;

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

                           (iii)    (A) permit the validity or effectiveness of
         this Indenture to be impaired, or permit the lien in favor of the
         Indenture Trustee created by this Indenture to be amended,
         hypothecated, subordinated, terminated or discharged, or permit any
         Person to be released from any covenants or obligations with respect to
         the Class A Notes under this Indenture except as may be expressly
         permitted hereby, (B) permit any lien, charge, excise, claim, security
         interest, mortgage or other encumbrance (other than the lien of this
         Indenture) to be created on or extend to or otherwise arise upon or
         burden the Trust Property or any part thereof or any interest therein
         or the proceeds thereof (other than tax liens, mechanics' liens and
         other liens that arise by operation of law, in each case on a Financed
         Vehicle and arising solely as a result of an action or omission of the
         related Obligor), (C) permit the lien of this Indenture not to
         constitute a valid perfected first priority security interest in the
         Trust Property, (D) change its name, identity, state of organization or
         structure as a statutory trust in any manner that would, could or might
         make any financing statement or continuation statement filed with
         respect to it seriously misleading within the meaning of Section 9-507
         of the UCC or (E) waive, amend, modify, supplement or terminate any
         Basic Document or any provision thereof, or fail to

                                     - 21 -

<PAGE>

         comply with the provisions of the Basic Documents, in each case, prior
         to the Class A Termination Date, without the prior written consent of
         the Class A Insurer.

                  SECTION 3.9. Annual Statement as to Compliance.

The Issuer will deliver to the Indenture Trustee, the Rating Agency, the Class A
Insurer and the Noteholders on or before March 31st of each year beginning in
the year 2004, an Officer's Certificate dated as of the previous December 31st
stating, as to the Authorized Officer signing such Officer's Certificate, that

                           (i)      a review of the activities of the Issuer
         during the preceding 12-month period (or, for the initial certificate,
         for such shorter period as may have elapsed from the initial issuance
         of the Class A Notes to such December 31st) and of performance under
         this Indenture has been made under such Authorized Officer's
         supervision; and

                           (ii)     to the best of such Authorized Officer's
         knowledge, based on such review, the Issuer has complied with all
         conditions and covenants under this Indenture throughout such year, or,
         if there has been a default in the compliance of any such condition or
         covenant, specifying each such default known to such Authorized Officer
         and the nature and status thereof.

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

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

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

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

                           (iii)    the Rating Agency Condition shall have been
         satisfied with respect to such transaction;

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

                                     - 22 -

<PAGE>
                           (v)      any action as is necessary to maintain the
         Lien and security interest created by this Indenture shall have been
         taken;

                           (vi)     prior to the Class A Termination Date, the
         Issuer shall have given the Class A Insurer written notice of such
         proposed consolidation or merger at least 30 Business Days prior to its
         proposed consummation, and the Class A Insurer has given its prior
         written consent of such consolidation or merger; and

                           (vii)    the Issuer shall have delivered to the
         Indenture Trustee and the Class A Insurer an Officer's Certificate and
         an Opinion of Counsel each stating that such consolidation or merger
         and such supplemental indenture comply with this Section 3.10(a) and
         that all conditions precedent herein provided for relating to such
         transaction have been complied with.

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

                           (i)      the Person that acquires by conveyance or
         transfer the properties and assets of the Issuer the conveyance or
         transfer of which is hereby restricted shall (A) be a United States
         citizen or a Person organized and existing under the laws of the United
         States of America or any State, (B) expressly assume, by an indenture
         supplemental hereto, executed and delivered to the Indenture Trustee,
         in form satisfactory to the Indenture Trustee, and prior to the Class A
         Termination Date the Class A Insurer, the due and punctual payment of
         the principal of and interest on all Class A Notes and the performance
         or observance of every agreement and covenant of this Indenture and
         each of the Basic Documents on the part of the Issuer to be performed
         or observed, all as provided herein, (C) expressly agree by means of
         such supplemental indenture that all right, title and interest so
         conveyed or transferred shall be subject and subordinate to the rights
         of Holders of the securities and (D) unless otherwise provided in such
         supplemental indenture, expressly agree to indemnify, defend and hold
         harmless the Issuer against and from any loss, liability or expense
         arising under or related to this Indenture and the Class A Notes;

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

                           (iii)    the Rating Agency Condition shall have been
         satisfied with respect to such transaction;

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

                           (v)      any action as is necessary to maintain the
         Lien and security interest created by this Indenture shall have been
         taken;

                                     - 23 -

<PAGE>

                           (vi)     prior to the Class A Termination Date, the
         Issuer shall have given the Class A Insurer written notice of such
         proposed action at least 30 Business Days prior to its proposed
         consummation, and the Class A Insurer shall have given its prior
         written consent to such action; and

                           (vii)    the Issuer shall have delivered to the
         Indenture Trustee and the Class A Insurer an Officer's Certificate and
         an Opinion of Counsel each stating that such conveyance or transfer and
         such supplemental indenture comply with this Section 3.10(b) and that
         all conditions precedent herein provided for relating to such
         transaction have been complied with.

                  SECTION 3.11. Successor or Transferee.

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

                  (b)      Upon a conveyance or transfer of all the assets and
properties of the Issuer pursuant to Section 3.10 (b), Credit Acceptance Auto
Dealer Loan Trust 2003-1 will be released from every covenant and agreement of
this Indenture to be observed or performed on the part of the Issuer with
respect to the Class A Notes immediately upon the delivery of written notice
from the Issuer to the Indenture Trustee and the Class A Insurer stating that
Credit Acceptance Auto Dealer Loan Trust 2003-1 is to be so released.

                  SECTION 3.12. No Other Business.

The Issuer shall not engage in any business other than financing, purchasing,
owning, selling and managing the Contracts in the manner contemplated by this
Indenture and the Basic Documents and activities incidental thereto and any
other activities permitted under the Trust Agreement.

                  SECTION 3.13. No Borrowing.

The Issuer shall not issue, incur, assume, guarantee or otherwise become liable,
directly or indirectly, for any Indebtedness except for: (i) the Class A Notes;
(ii) obligations owing from time to time to the Class A Insurer; and (iii) any
other Indebtedness permitted by or arising under the Basic Documents. The
proceeds of the Class A Notes shall be used exclusively to fund the Issuer's
purchase of the Dealer Loans and the other assets specified in the Sale and
Servicing Agreement, to fund the Reserve Account and to pay the Issuer's
organizational, transactional and start-up expenses.

                  SECTION 3.14. Guarantees, Loans, Advances and Other
Liabilities.

Except as contemplated by the Sale and Servicing Agreement or this Indenture,
the Issuer shall not make any loan or advance or credit to, or guarantee
(directly or indirectly or by an instrument having the effect of assuring
another's payment or performance on any obligation or capability of so doing or
otherwise), endorse or otherwise become contingently liable, directly or
indirectly, in connection with the obligations, stocks or dividends of, or own,
purchase, repurchase or

                                     - 24 -

<PAGE>

acquire (or agree contingently to do so) any stock, obligations, assets or
securities of, or any other interest in, or make any capital contribution to,
any other Person.

                  SECTION 3.15. Capital Expenditures.

The Issuer shall not make any expenditure (by long-term or operating lease or
otherwise) for capital assets (either realty or personalty) except as
contemplated by the Basic Documents.

                  SECTION 3.16. Compliance with Laws.

The Issuer shall comply with the requirements of all applicable laws, the
non-compliance with which would, individually or in the aggregate, materially
and adversely affect the ability of the Issuer to perform its obligations under
the Class A Notes, this Indenture or any Basic Document.

                  SECTION 3.17. Restricted Payments.

The Issuer shall not, directly or indirectly, (i) pay any dividend or make any
distribution (by reduction of capital or otherwise), whether in cash, property,
securities or a combination thereof, to the Owner Trustee or any owner of a
beneficial interest in the Issuer or otherwise with respect to any ownership or
equity interest or security in or of the Issuer or to the Servicer, (ii) redeem,
purchase, retire or otherwise acquire for value any such ownership or equity
interest or security or (iii) set aside or otherwise segregate any amounts for
any such purpose; provided, however, that the Issuer may make, or cause to be
made, distributions to the Servicer, the Owner Trustee, the Indenture Trustee,
the Trust Collateral Agent, the Class A Insurer and the Certificateholders as
permitted by, and to the extent funds are available for such purpose under, the
Sale and Servicing Agreement and the Trust Agreement. The Issuer will not,
directly or indirectly, make payments to or distributions from the Collection
Account except in accordance with this Indenture and the Basic Documents.

                  SECTION 3.18. Notice of Indenture Events of Default.

Upon a Responsible Officer of the Owner Trustee having actual knowledge or
receipt of written notice thereof, the Issuer agrees to give the Indenture
Trustee, the Trust Collateral Agent, the Class A Insurer and the Rating Agency
prompt written notice of each Indenture Event of Default hereunder and each
default on the part of the Servicer or the Seller of its obligations under the
Sale and Servicing Agreement.

                  SECTION 3.19. Further Instruments and Acts.

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

                  SECTION 3.20. Amendments of Sale and Servicing Agreement and
Trust Agreement.

The Issuer shall not agree to any amendment to Section 11.01 of the Sale and
Servicing Agreement or Section 11.1 of the Trust Agreement to eliminate the
requirements thereunder that

                                     - 25 -

<PAGE>

the Indenture Trustee or the Holders of the Class A Notes consent to amendments
thereto as provided therein.

                  SECTION 3.21. Income Tax Characterization.

For purposes of federal income, state and local income and franchise and any
other income taxes, the Issuer will, and each Class A Noteholder by such Class A
Noteholder's acceptance thereof agrees to, treat the Class A Notes as
indebtedness and hereby instructs the Issuer to treat the Class A Notes as
indebtedness for federal, state and other tax reporting purposes.

                  SECTION 3.22. Perfection Representations, Warranties and
Covenants.

The perfection representations, warranties and covenants made by the Issuer and
set forth on Schedule A hereto shall be a part of this Indenture for all
purposes.

                                   ARTICLE IV

                           Satisfaction and Discharge

                  SECTION 4.1. Satisfaction and Discharge of Indenture.

This Indenture shall cease to be of further effect with respect to the Class A
Notes except as to (i) rights of registration of transfer and exchange, (ii)
substitution of mutilated, destroyed, lost or stolen Class A Notes, (iii) rights
of Class A Noteholders to receive payments of principal thereof and interest
thereon, (iv) Sections 3.3, 3.4, 3.5, 3.7, 3.8, 3.10, 3.12, 3.13, 3.14, 3.15,
3.16, 3.17, 3.19, 3.20 and 3.21, (v) the rights, obligations and immunities of
the Indenture Trustee hereunder (including the rights of the Indenture Trustee
under Section 6.7 and the obligations of the Indenture Trustee under Section
4.2) and (vi) the rights of Class A Noteholders and the Class A Insurer as
beneficiaries hereof with respect to the property so deposited with the
Indenture Trustee, or the Trust Collateral Agent, payable to all or any of them,
and the Indenture Trustee, on written demand of and at the expense of the
Issuer, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture with respect to the Class A Notes, when

                           (A)      either

                                    (1)      all Class A Notes theretofore
                           authenticated and delivered (other than (i) Class A
                           Notes that have been destroyed, lost or stolen and
                           that have been replaced or paid as provided in
                           Section 2.4 and (ii) Class A Notes for whose payment
                           money has theretofore been deposited in trust or
                           segregated and held in trust by the Issuer and
                           thereafter repaid to the Issuer or discharged from
                           such trust, as provided in Section 3.3) have been
                           delivered to the Indenture Trustee for cancellation;
                           or

                                    (2)      all Class A Notes not theretofore
                           delivered to the Indenture Trustee for cancellation

                                             (i)      have become due and
                                    payable,

                                     - 26 -

<PAGE>

                                            (ii)     will become due and payable
                                    at the Stated Final Maturity within one
                                    year, or

                                            (iii)    are to be called for
                                    redemption within one year under
                                    arrangements satisfactory to the Indenture
                                    Trustee for the giving of notice of
                                    redemption by the Indenture Trustee in the
                                    name, and at the expense, of the Issuer,

and the Issuer, in the case of (i), (ii) or (iii) of this clause (2), has
irrevocably deposited or caused to be irrevocably deposited with the Trust
Collateral Agent cash or direct obligations of or obligations guaranteed by the
United States of America (which will mature prior to the date such amounts are
payable), in trust for such purpose, in an amount sufficient to pay and
discharge the entire indebtedness on such Class A Notes not theretofore
delivered to the Indenture Trustee for cancellation when due to the Stated Final
Maturity or Redemption Date (if Class A Notes shall have been called for
redemption pursuant to Section 10.1(a)), as the case may be;

                           (B)      the Issuer has paid or caused to be paid all
                  Issuer Secured Obligations;

                           (C)      the Issuer has delivered to the Indenture
                  Trustee and the Class A Insurer an Officer's Certificate, an
                  Opinion of Counsel and if required by the Indenture Trustee or
                  the Class A Insurer an Independent Certificate from a firm of
                  certified public accountants, each meeting the applicable
                  requirements of Section 11.1(a) and each stating that all
                  conditions precedent herein provided for relating to the
                  satisfaction and discharge of this Indenture have been
                  complied with; and

                           (D)      upon the satisfaction and discharge of the
                  Indenture pursuant to this Section 4.1, the Indenture Trustee
                  shall deliver to the Owner Trustee and the Class A Insurer a
                  certificate of a Responsible Officer stating that the Class A
                  Noteholders and the Indenture Trustee have been paid all
                  amounts owed to them.

                  SECTION 4.2. Application of Trust Money.

All moneys deposited with the Indenture Trustee pursuant to Section 4.1 hereof
shall be held in trust and applied by it, in accordance with the provisions of
the Class A Notes and this Indenture, to the payment, either directly or through
any Paying Agent, as the Indenture Trustee may determine, to the Holders of the
particular Class A Notes for the payment or redemption of which such moneys have
been deposited with the Indenture Trustee, of all sums due and to become due
thereon for principal and interest; but such moneys need not be segregated from
other funds except to the extent required herein or in the Sale and Servicing
Agreement or required by law.

                  SECTION 4.3. Repayment of Moneys Held by Paying Agent.

In connection with the satisfaction and discharge of this Indenture with respect
to the Notes, all moneys then held by any Paying Agent other than the Indenture
Trustee under the provisions of this Indenture with respect to such Class A
Notes shall, upon demand of the Issuer, be paid to the

                                     - 27 -

<PAGE>

Indenture Trustee to be held and applied according to Section 3.3 and thereupon
such Paying Agent shall be released from all further liability with respect to
such moneys.

                                   ARTICLE V

                                    Remedies

                  SECTION 5.1. Indenture Events of Default.

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

                           (i)      default by the Issuer in the payment of any
         interest on the Class A Notes when the same becomes due and payable,
         and such default shall continue for a period of five (5) days (it being
         understood that any payment by the Class A Insurer under the Class A
         Note Insurance Policy shall not constitute payment by the Issuer); or

                           (ii)     default by the Issuer in the payment of the
         principal of or any installment of the principal of the Class A Notes
         when the same becomes due and payable (it being understood that any
         payment by the Class A Insurer under the Class A Note Insurance Policy
         shall not constitute payment by the Issuer); or

                           (iii)    default in the observance or performance of
         any covenant or agreement of the Issuer made under this Indenture
         (other than a covenant or agreement, a default in the observance or
         performance of which is specifically dealt with elsewhere in this
         Section 5.1), or any representation or warranty of the Issuer made in
         this Indenture or in any certificate or other writing delivered
         pursuant to this Indenture or in connection with this Indenture proving
         to have been incorrect in any material respect as of the time when the
         same shall have been made, and such default shall continue or not be
         cured, or the circumstance or condition in respect of which such
         misrepresentation or warranty was incorrect shall not have been
         eliminated or otherwise cured, for a period of 30 days (or a longer
         period, not in excess of 60 days as may be reasonably necessary to
         remedy such default, if the default is capable of remedy within 60 days
         or less, and the Servicer, on behalf of the Issuer, delivers an
         officer's certificate to the Indenture Trustee to the effect that the
         Issuer has commenced, or will promptly commence and diligently pursue,
         all reasonable efforts to remedy the default) after there shall have
         been given to the Issuer by the Class A Insurer, or if a Class A
         Insurer Default has occurred and is continuing, the Indenture Trustee
         at the direction of Class A Noteholders representing at least 25% of
         the outstanding Class A Note Balance, a written notice specifying such
         default or incorrect representation or warranty and requiring it to be
         remedied and stating that such notice is a "Notice of Default" pursuant
         to this Indenture; or

                           (iv)     the filing of a decree or order for relief
         by a court having jurisdiction in the premises in respect of the
         Seller, the Issuer or any substantial part of

                                     - 28 -

<PAGE>

         the Trust Property in an involuntary case under any applicable Federal
         or state bankruptcy, insolvency or other similar law now or hereafter
         in effect, or appointing a receiver, liquidator, assignee, custodian,
         trustee, sequestrator or similar official of the Seller or the Issuer,
         as applicable, or for any substantial part of the Trust Property, or
         ordering the winding-up or liquidation of the Seller's affairs or the
         Issuer's affairs, as applicable, and such decree or order shall remain
         unstayed and in effect for a period of 60 consecutive days; or

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

                           (vi)     a draw is made on the Class A Note Insurance
         Policy; or

                           (vii)    Collections for any three (3) consecutive
         Collection Periods are less than 65.0% of Forecasted Collections for
         such Collection Periods; or

                           (viii)   the Seller sells or otherwise transfers
         ownership of the Certificate except as permitted by the Basic
         Documents; or

                           (ix)     the Seller, fails to observe or perform in
         any material respect any of its separateness or limited purpose
         covenants in the Basic Documents to which it is a party (after notice
         and after giving effect to any applicable grace periods set forth
         therein) or its organizational documents.

                  SECTION 5.2. Rights Upon Indenture Event of Default.

                  (a)      If an Indenture Event of Default described in clause
(iv) or (v) of Section 5.1 shall have occurred, the entire unpaid principal
balance of the Class A Notes, all interest accrued and unpaid thereon and all
other amounts payable under this Indenture and the Basic Documents shall
automatically become immediately due and payable. If any other Indenture Event
of Default shall have occurred, the Indenture Trustee, if so requested in
writing by: (x) the Class A Insurer, or (y) if a Class A Insurer Default has
occurred and is continuing the Majority Noteholders, shall declare the entire
principal balance of the Class A Notes, all interest accrued and unpaid thereon
and all other amounts payable under this Indenture and the other Basic Documents
to be immediately due and payable.

                  (b)      If an Indenture Event of Default occurs and the Class
A Notes have been accelerated, the Indenture Trustee may exercise any of the
remedies specified in Section 5.4(a). Payments in accordance with Section 5.2(a)
hereof following acceleration of the Class A Notes shall be applied by the
Indenture Trustee:

                                     - 29 -

<PAGE>

                  FIRST: (x) pro rata, to the Servicer or the Backup Servicer,
         the Servicing Fee and any indemnification amounts owed to the Backup
         Servicer, and to the Trust Collateral Agent, the Indenture Trustee and
         the Owner Trustee, their related accrued and unpaid fees,
         indemnification amounts and expenses and (y) to any successor Servicer,
         any unpaid Transition Expenses which may be due to it pursuant to the
         terms of the Sale and Servicing Agreement;

                  SECOND:  to the Class A Insurer, the Premium due pursuant to
         the Insurance Agreement;

                  THIRD: to Class A Noteholders for amounts due and unpaid on
         the Class A Notes for interest, ratably, without preference or priority
         of any kind, according to the amounts due and payable on the Class A
         Notes for interest;

                  FOURTH: to Class A Noteholders for amounts due and unpaid on
         the Class A Notes for principal, ratably, without preference or
         priority of any kind, according to the amounts due and payable on the
         Class A Notes for principal until the Class A Note Balance has been
         reduced to zero; and

                  FIFTH:  to the Class A Insurer, the Class A Insurer
         Reimbursement Obligations.

                  (c)      At any time after declaration of acceleration of
maturity has been made in accordance with Section 5.2(a) hereof and before a
judgment or decree for payment of the money due has been obtained by the
Indenture Trustee as hereinafter in this Article V provided, the Control Party
by written notice to the Issuer and the Indenture Trustee, may rescind and annul
such declaration and its consequences if:

                           (i)      the Issuer has paid or deposited with the
         Indenture Trustee a sum sufficient to pay:

                           (A)      all payments of principal of and interest on
                  all Class A Notes and all other amounts that would then be due
                  hereunder or upon such Class A Notes if the Indenture Event of
                  Default giving rise to such acceleration had not occurred,
                  which funds shall be deposited into the Note Distribution
                  Account;

                           (B)      all sums paid or advanced by the Indenture
                  Trustee hereunder and the reasonable compensation, expenses,
                  disbursements and advances of the Indenture Trustee and its
                  agents and counsel, which funds shall be deposited into the
                  Collection Account; and

                           (C)      all sums paid or advanced by or due to the
                  Class A Insurer and its Premium, which funds shall be paid to
                  the Class A Insurer; and

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

                                     - 30 -

<PAGE>

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

                  (d)      In the event the Class A Notes have been accelerated
in accordance with Section 5.2(a) hereof, the Class A Insurer shall have the
right, but not the obligation, to make payments under the Class A Note Policy,
or otherwise, of principal and interest due on the Class A Notes, in whole or in
part, on any date or dates following such acceleration, as the Class A Insurer,
in its sole discretion, may elect.

                  SECTION 5.3. Collection of Indebtedness and Suits for
Enforcement by Indenture Trustee.

                  (a)      The Issuer hereby irrevocably and unconditionally
appoints the Indenture Trustee as the true and lawful attorney-in-fact of the
Issuer, with full power of substitution, to execute, acknowledge and deliver any
notice, document, certificate, paper, pleading or instrument and to do in the
name of the Indenture Trustee as well as in the name, place and stead of the
Issuer such acts, things and deeds for or on behalf of and in the name of the
Issuer under this Indenture (including specifically under Section 5.4) and under
the Basic Documents which the Issuer could or might do or which may be
necessary, desirable or convenient in the Indenture Trustee's sole discretion to
effect the purposes contemplated hereunder and under the Basic Documents and,
without limitation, following the occurrence of an Indenture Event of Default,
acting at the instruction or with the consent of the Control Party, in
accordance with the terms of Article V hereof, exercise full right, power and
authority to take, or defer from taking, any and all acts with respect to the
administration, maintenance or disposition of the Trust Property.

                  (b)      Notwithstanding anything to the contrary contained in
this Indenture (including, without limitation, Sections 5.4(a), 5.12, 5.13 and
5.16), the Indenture Trustee, prior to the Class A Termination Date, may with
the prior written consent of the Class A Insurer or shall, at the direction of
the Class A Insurer, and thereafter may at its discretion, proceed to protect
and enforce its rights and the rights of the Class A Noteholders and the Class A
Insurer by such appropriate proceedings as the Indenture Trustee or the Class A
Insurer shall deem most effective to protect and enforce any such rights,
whether for specific performance of any covenant or agreement in this Indenture
or in aid of the exercise of any power granted herein, or to enforce any other
proper remedy or legal or equitable right vested in the Indenture Trustee by
this Indenture or by law.

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

                                     - 31 -

<PAGE>

be entitled and empowered, at the expense of the Seller by intervention in such
proceedings or otherwise:

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

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

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

                           (iv)     to file such proofs of claim and other
         papers or documents as may be necessary or advisable in order to have
         the claims of the Indenture Trustee, the Class A Insurer or the Holders
         of Class A Notes allowed in any judicial proceedings relative to the
         Issuer, its creditors and its property;

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

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

                  (e)      All rights of action and of asserting claims under
this Indenture or under any of the Class A Notes, may be enforced by the
Indenture Trustee without the possession of any of the Class A Notes or the
production thereof in any trial or other proceedings relative thereto, and any
such action or proceedings instituted by the Indenture Trustee shall be brought

                                     - 32 -

<PAGE>

in its own name as trustee of an express trust, and any recovery of judgment,
subject to the payment of the expenses, disbursements and compensation of the
Indenture Trustee, each predecessor Indenture Trustee and their respective
agents and attorneys, shall be for the ratable benefit of the Holders of the
Class A Notes and the Class A Insurer.

                  (f)      In any proceedings brought by the Indenture Trustee
(and also any proceedings involving the interpretation of any provision of this
Indenture), the Indenture Trustee shall be held to represent all the Holders of
the Class A Notes, and it shall not be necessary to make any Class A Noteholder
a party to any such proceedings.

                  SECTION 5.4. Remedies.

                  (a)      If an Indenture Event of Default shall have occurred
and be continuing, the Control Party, or the Indenture Trustee at the written
direction of the Control Party, may do any one or more of the following:

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

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

                           (iii)    exercise any remedies of a secured party
         under the UCC and take any other appropriate action to protect and
         enforce the rights and remedies of the Indenture Trustee, the Holders
         of the Class A Notes and the Class A Insurer; and

                           (iv)     direct the Indenture Trustee to sell the
         Trust Property or any portion thereof or rights or interest therein, at
         one or more public or private sales called and conducted in any manner
         permitted by law; provided, however, that the Control Party may not
         direct the Indenture Trustee to sell or otherwise liquidate the Trust
         Property following an Indenture Event of Default unless:

                           (A)      if the Class A Insurer is the Control Party,
                  the Class A Insurer may not direct the Indenture Trustee to
                  sell or otherwise liquidate the Trust Property following an
                  Indenture Event of Default unless the proceeds of such sale or
                  liquidation distributable to the Class A Noteholders are
                  sufficient to discharge in full all amounts then due and
                  unpaid upon the Class A Notes for principal and interest due
                  thereon;

                           (B)      if the Majority Holders are the Control
                  Party, the Indenture Trustee, if so directed by the Majority
                  Holders, may not sell or otherwise liquidate the Trust
                  Property following an Indenture Event of Default unless:

                                    (I)      such Indenture Event of Default is
                           of the type described in Section 5.1(iv) or (v),

                                     - 33 -

<PAGE>

                                    (II)     such Indenture Event of Default is
                           of the type described in any other clause of Section
                           5.1 and the Class A Noteholders consent thereto in
                           writing, or

                                    (III)    either (i) the proceeds of such
                           sale or liquidation would be in an amount sufficient
                           to discharge in full all amounts then due and unpaid
                           upon such Class A Notes for principal and interest or
                           (ii) the Indenture Trustee determines that the Trust
                           Property will not continue to provide sufficient
                           funds for the payment of principal of and interest on
                           the Class A Notes as they would have become due if
                           they had not been declared due and payable (it being
                           understood that for purposes of making such a
                           determination, the Indenture Trustee may conclusively
                           rely on an independent auditor);

provided, however, that, subject to Section 6.1, the Indenture Trustee shall
have the right to decline to follow any such direction if it, being advised by
counsel, determines that the action so directed may not lawfully be taken, or if
it, in good faith shall, by a Responsible Officer, determine that the
proceedings so directed would be illegal or subject it to personal liability.

                  (b)      If the Indenture Trustee sells all or a portion of
the Trust Property, following an Indenture Event of Default, the Trust
Collateral Agent shall give Credit Acceptance at least ten (10) days' prior
notice of such sale, and Credit Acceptance may, but is not required to, make a
bid for the portion, or all, of the Trust Property being sold by the Indenture
Trustee.

                  SECTION 5.5. Optional Preservation of the Trust Property.

If the Class A Notes have been declared to be due and payable under Section 5.2
following an Indenture Event of Default and such declaration and its
consequences have not been rescinded and annulled, the Indenture Trustee may,
with the prior written consent of the Control Party, but need not unless
directed in writing by the Control Party, maintain possession of the Trust
Property which is in its possession and elect to direct the Trust Collateral
Agent to maintain possession of the Trust Property which is in the possession of
the Trust Collateral Agent. It is the desire of the parties hereto and the Class
A Noteholders that there be at all times sufficient funds for the payment of
principal of and interest on the Class A Notes, and the Control Party shall take
such desire into account when determining whether or not to direct the Indenture
Trustee or the Trust Collateral Agent, as applicable, to maintain possession of
the Trust Property. In determining whether to direct the Indenture Trustee or
the Trust Collateral Agent, as applicable, to obtain possession of the Trust
Property, the Control Party may, but need not maintain and conclusively rely
upon an opinion of an Independent investment banking or accounting firm of
national reputation as to the feasibility of such proposed action and as to the
sufficiency of the Trust Property for such purpose.

                  SECTION 5.6. [Reserved].

                  SECTION 5.7. Limitation of Suits.

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<PAGE>

Subject to Section 5.8 and Section 6.8, no Holder of any Class A Note shall have
any right to institute any proceeding, judicial or otherwise, with respect to
this Indenture, or for the appointment of a receiver or trustee, or for any
other remedy hereunder, unless:

                           (i)      such Holder has previously given written
         notice to the Indenture Trustee of a continuing Indenture Event of
         Default;

                           (ii)     (A) the Indenture Event of Default arises
         from the Seller's or the Servicer's failure to remit payments under the
         Sale and Servicing Agreement when due or (B) the Majority Noteholders
         shall have made written request to the Indenture Trustee to institute
         such proceeding in respect of such Indenture Event of Default in its
         own name as Indenture Trustee hereunder;

                           (iii)    such Holder or Holders have offered to the
         Indenture Trustee indemnity reasonably satisfactory to it against the
         costs, expenses and liabilities to be incurred in complying with such
         request;

                           (iv)     the Indenture Trustee for 30 days after its
         receipt of such notice, request and offer of indemnity has failed to
         institute such proceedings;

                           (v)      no direction inconsistent with such written
         request has been given to the Indenture Trustee during such 30-day
         period; and

                           (vi)     the Class A Insurer has given its prior
         written consent.

it being understood and intended that no one or more Holders of Class A Notes
shall have any right in any manner whatever by virtue of, or by availing of, any
provision of this Indenture to affect, disturb or prejudice the rights of any
other Holders of Notes or to obtain or to seek to obtain priority or preference
over any other Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal, ratable and common benefit of all
Class A Noteholders.

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

                  SECTION 5.8. Unconditional Rights of Noteholders To Receive
Principal and Interest.

Notwithstanding any other provisions in this Indenture, the Holder of any Class
A Note shall have the right, which is absolute and unconditional, to receive
payment of the principal of and interest, if any, on such Class A Note on or
after the respective due dates thereof expressed in such Class A Note or in this
Indenture (or, in the case of redemption, on or after the Redemption Date) and
to institute suit for the enforcement of any such payment, and such right shall
not be impaired without the consent of such Holder.

                                     - 35 -

<PAGE>

                  SECTION 5.9. Restoration of Rights and Remedies.

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

                  SECTION 5.10. Rights and Remedies Cumulative.

Except as provided in Section 5.7, no right or remedy herein conferred upon or
reserved to the Indenture Trustee, the Class A Insurer or the Class A
Noteholders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

                  SECTION 5.11. Delay or Omission Not a Waiver.

No delay or omission of the Indenture Trustee, the Class A Insurer or any Holder
of any Class A Note to exercise any right or remedy accruing upon any Indenture
Default or Indenture Event of Default shall impair any such right or remedy or
constitute a waiver of any such Indenture Default or Indenture Event of Default
or an acquiescence therein. Every right and remedy given by this Article V or by
law to the Indenture Trustee, the Class A Insurer or to the Class A Noteholders
may be exercised from time to time, and as often as may be deemed expedient, by
the Indenture Trustee, the Class A Insurer or by the Class A Noteholders, as the
case may be.

                  SECTION 5.12. Control by Class A Insurer.

Prior to the Termination Date, and so long as no Class A Insurer Default has
occurred and is continuing, the Class A Insurer shall have the right to direct
the time, method and place of conducting any proceeding for any remedy available
to the Indenture Trustee with respect to the Class A Notes or exercising any
trust or power conferred on the Indenture Trustee;

provided, however, that, the Indenture Trustee may take any other action deemed
proper by the Indenture Trustee that is not inconsistent with such direction;
and subject to Section 6.1, the Indenture Trustee shall have the right to
decline to follow any direction of the Class A Insurer if the Indenture Trustee
being advised by counsel determines that the action so directed may not lawfully
be taken, or if the Indenture Trustee in good faith shall, by a Responsible
Officer, determine that the proceedings so directed would be illegal or subject
it to personal liability or be unduly prejudicial to the rights of Class A
Noteholders not parties to such direction.

                  SECTION 5.13. Undertaking for Costs.

                                     - 36 -

<PAGE>

All parties to this Indenture agree, and each Holder of any Class A Note by such
Holder's acceptance thereof shall be deemed to have agreed, that any court may
in its discretion require, in any suit for the enforcement of any right or
remedy under this Indenture, or in any suit against the Indenture Trustee for
any action taken, suffered or omitted by it as Indenture Trustee, the filing by
any party litigant in such suit of an undertaking to pay the costs of such suit,
and that such court may in its discretion assess reasonable costs, including
reasonable attorneys' fees, against any party litigant in such suit, having due
regard to the merits and good faith of the claims or defenses made by such party
litigant.

                  SECTION 5.14. Waiver of Stay or Extension Laws.

The Issuer covenants (to the extent that it may lawfully do so) that it will not
at any time insist upon, or plead or in any manner whatsoever, claim or take the
benefit or advantage of, any stay or extension law wherever enacted, now or at
any time hereafter in force, that may affect the covenants or the performance of
this Indenture; and the Issuer (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and covenants that it
will not hinder, delay or impede the execution of any power herein granted to
the Indenture Trustee, but will suffer and permit the execution of every such
power as though no such law had been enacted.

                  SECTION 5.15. Action on Class A Notes.

The Indenture Trustee's right to seek and recover judgment on the Notes or under
this Indenture shall not be affected by the seeking, obtaining or application of
any other relief under or with respect to this Indenture. Neither the lien of
this Indenture nor any rights or remedies of the Indenture Trustee or the Class
A Noteholders shall be impaired by the recovery of any judgment by the Indenture
Trustee against the Issuer or by the levy of any execution under such judgment
upon any portion of the Trust Property or upon any of the assets of the Issuer.

                  SECTION 5.16. Performance and Enforcement of Certain
Obligations.

                  (a)      Promptly following a request from the Indenture
Trustee or, prior to the Class A Termination Date, the Class A Insurer, to do so
and at the Issuer's expense, the Issuer agrees to take all such lawful action as
the Indenture Trustee or the Class A Insurer, as the case may be, may request to
compel or secure the performance and observance by the Seller and the Servicer,
as applicable, of each of their obligations to the Issuer under or in connection
with the Sale and Servicing Agreement in accordance with the terms thereof, and
to exercise any and all rights, remedies, powers and privileges lawfully
available to the Issuer under or in connection with the Sale and Servicing
Agreement to the extent and in the manner directed by the Indenture Trustee, or
prior to the Class A Termination Date, the Class A Insurer, including the
transmission of notices of default on the part of the Seller or the Servicer
thereunder and the institution of legal or administrative actions or proceedings
to compel or secure performance by the Seller or the Servicer of each of their
obligations under the Sale and Servicing Agreement.

                  (b)      If an Indenture Event of Default has occurred, the
Indenture Trustee may, with the prior written consent of the Class A Insurer or
at the written direction of the Class A Insurer, shall, exercise all rights,
remedies, powers, privileges and claims of the Issuer against

                                     - 37 -

<PAGE>

the Seller or the Servicer under or in connection with the Sale and Servicing
Agreement, including the right or power to take any action to compel or secure
performance or observance by the Seller or the Servicer of each of their
obligations to the Issuer thereunder and to give any consent, request, notice,
direction, approval, extension or waiver under the Sale and Servicing Agreement,
and any right of the Issuer to take such action shall be suspended.

                  SECTION 5.17. Subrogation. Any and all proceeds of claims paid
by the Class A Insurer under the Class A Note Policy and disbursed by the
Indenture Trustee or the Trust Collateral Agent shall not be considered payment
by the Issuer with respect to the Class A Notes, and shall not discharge the
obligations of the Issuer with respect thereto. The Class A Insurer shall, to
the extent it makes any payment with respect to the Class A Notes, become
subrogated to the rights of the recipients of such payments to the extent of
such payments. Subject to and conditioned upon any payment with respect to the
Class A Notes by or on behalf of the Class A Insurer, each Class A Noteholder
shall be deemed, without further action, to have directed the Indenture Trustee
or the Trust Collateral Agent to assign to the Class A Insurer all rights to the
payment of interest or principal with respect to the Class A Notes which are
then due for payment to the extent of all payments made by the Class A Insurer
and the Class A Insurer may exercise any option, vote, right, power or the like
with respect to the Class A Notes to the extent that it has made payment
pursuant to the Class A Note Policy. To evidence such subrogation, the Note
Registrar shall note the Class A Insurer's rights as subrogee upon the Class A
Note Register upon receipt from the Class A Insurer of proof of payment by the
Class A Insurer of any Class A Interest Distributable Amount or Class A
Principal Distributable Amount.

                  SECTION 5.18. Preference Claims. (a) In the event that the
Indenture Trustee has received a certified copy of a final, non-appealable order
of the appropriate court that any Insured Payment paid on a Class A Note has
been avoided in whole or in part as a preference payment under applicable
bankruptcy law, the Indenture Trustee shall so notify the Class A Insurer, shall
comply with the provisions of the Class A Note Policy to obtain payment by the
Class A Insurer of such avoided payment, and shall, at the time it provides
notice to the Class A Insurer, comply with the provisions of the Class A Note
Policy to obtain payment by the Class A Insurer, notify Holders of the Class A
Notes by mail that, in the event that any Class A Noteholder's payment is so
recoverable, such Class A Noteholder will be entitled to payment pursuant to the
terms of the Class A Note Policy. The Indenture Trustee shall furnish to the
Class A Insurer at its written request, the requested records it holds in its
possession evidencing the payments of principal of and interest on the Class A
Notes, if any, which have been made by the Indenture Trustee and subsequently
recovered from any Class A Noteholders, and the dates on which such payments
were made. Pursuant to the terms of the Class A Note Policy, the Class A Insurer
will make such payment on behalf of the Class A Noteholder to the receiver,
conservator, debtor-in-possession or trustee in bankruptcy named in the Order
(as defined in the Class A Note Policy) and not to the Indenture Trustee or any
Class A Noteholder directly (unless a Class A Noteholder has previously paid
such payment to the receiver, conservator, debtor-in-possession or trustee in
bankruptcy, in which case the Class A Insurer will make such payment to the
Indenture Trustee for payment, in accordance with the instructions to be
provided by the Class A Insurer, to such Class A Noteholder upon proof of such
payment reasonably satisfactory to the Class A Insurer).

                                     - 38 -

<PAGE>

                  (b)      Each Notice for Payment (as defined in the Class A
Note Policy) shall provide that the Indenture Trustee, on its behalf and on
behalf of the Class A Noteholders, thereby appoints the Class A Insurer as agent
and attorney-in-fact for the Indenture Trustee and each Class A Noteholder in
any legal proceeding with respect to the Class A Notes. The Indenture Trustee
shall promptly notify the Class A Insurer of any proceeding or the institution
of any action (of which a Responsible Officer of the Indenture Trustee has
actual knowledge) seeking the avoidance as a preferential transfer under
applicable bankruptcy, insolvency, receivership, rehabilitation or similar law
(a "Preference Claim") of any payment made with respect to the Class A Notes.
Each Class A Noteholder, by its purchase of a Class A Note, and the Indenture
Trustee hereby agree that so long as a Class A Insurer Default shall not have
occurred and be continuing, the Class A Insurer may at any time during the
continuation of any proceeding relating to a Preference Claim direct all matters
relating to such Preference Claim including, without limitation, (i) the
direction of any appeal of any order relating to any Preference Claim and (ii)
the posting of any surety, supersedeas or performance bond pending any such
appeal at the expense of the Class A Insurer, but subject to reimbursement as
provided in the Insurance Agreement. In addition, and without limitation of the
foregoing, as set forth in Section 5.17, the Class A Insurer shall be subrogated
to, and each Class A Noteholder and the Indenture Trustee hereby delegate and
assign, to the fullest extent permitted by law, the rights of the Indenture
Trustee and each Class A Noteholder in the conduct of any proceeding with
respect to a Preference Claim, including, without limitation, all rights of any
party to an adversary Proceeding action with respect to any court order issued
in connection with any such Preference Claim.

                                   ARTICLE VI

                              The Indenture Trustee

                  SECTION 6.1. Duties of Indenture Trustee.

                  (a)      If an Indenture Event of Default has occurred and is
continuing, the Indenture Trustee shall follow such instructions and directions
as it may receive pursuant to Section 5.2 hereof and use the same degree of care
and skill in its exercise as a prudent person would exercise or use under the
circumstances in the conduct of such person's own affairs.

                  (b)      Except during the continuance of an Indenture Event
of Default:

                           (i)      the Indenture Trustee undertakes to perform
         such duties and only such duties as are specifically set forth in this
         Indenture and the Basic Documents and no implied covenants or
         obligations shall be read into this Indenture or the Basic Documents
         against the Indenture Trustee; and

                           (ii)     in the absence of bad faith, the Indenture
         Trustee may conclusively rely, as to the truth of the statements and
         the correctness of the opinions expressed therein, upon certificates or
         opinions furnished to the Indenture Trustee and conforming to the
         requirements of this Indenture and the Basic Documents; however, the
         Indenture Trustee shall examine the certificates and opinions to
         determine whether or not they conform on their face to the requirements
         of this Indenture and the Basic Documents.

                                     - 39 -

<PAGE>

                  (c)      The Indenture Trustee may not be relieved from
liability for its own negligent action, its own negligent failure to act or its
own bad faith or willful misconduct, except that:

                           (i)      this paragraph does not limit the effect of
         paragraph (b) of this Section;

                           (ii)     the Indenture Trustee shall not be liable
         for any error of judgment made in good faith by a Responsible Officer
         of the Indenture Trustee unless it is proved that the Indenture Trustee
         was negligent in ascertaining the pertinent facts; and

                           (iii)    the Indenture Trustee shall not be liable
         with respect to any action it takes or omits to take in good faith in
         accordance with a direction received by it pursuant to Section 5.12.

                  (d)      Money held in trust by the Indenture Trustee need not
be segregated from other funds except to the extent required by law or the terms
of this Indenture.

                  (e)      No provision of this Indenture shall require the
Indenture Trustee to expend or risk its own funds or otherwise incur liability
(financial or otherwise) in the performance of any of its duties hereunder or in
the exercise of any of its rights or powers, if it shall have reasonable grounds
to believe that repayment of such funds or indemnity satisfactory to it against
such risk or liability is not reasonably assured to it.

                  (f)      Every provision of this Indenture relating to the
conduct or affecting the liability of or affording protection to the Indenture
Trustee shall be subject to the provisions of this Section.

                  (g)      Without limiting the generality of this Section, the
Indenture Trustee shall have no duty (A) to see to any recording, filing or
depositing of this Indenture or any agreement referred to herein or any
financing statement or continuation statement evidencing a security interest in
the Financed Vehicles, or to see to the maintenance of any such recording or
filing or depositing or to any rerecording, refiling or redepositing of any
thereof, (B) to see to any insurance on the Financed Vehicles or Obligors or to
effect or maintain any such insurance, (C) to see to the payment or discharge of
any tax, assessment or other governmental charge or any Lien or encumbrance of
any kind owing with respect to, assessed or levied against any part of the
Trust, (D) to confirm or verify the contents of any reports or certificates
delivered to the Indenture Trustee pursuant to this Indenture or the Sale and
Servicing Agreement believed by the Indenture Trustee to be genuine and to have
been signed or presented by the proper party or parties, or (E) to inspect the
Financed Vehicles at any time or ascertain or inquire as to the performance or
observance of any of the Issuer's, the Seller's or the Servicer's
representations, warranties or covenants or the Servicer's duties and
obligations as Servicer and as custodian of the original Certificates of Title
of the Financed Vehicles under the Sale and Servicing Agreement.

                  (h)      In no event shall JPMorgan Chase Bank, in any of its
capacities hereunder, be deemed to have assumed any duties of the Owner Trustee
under the Delaware Statutory Trust Act, common law, or the Trust Agreement.

                                     - 40 -

<PAGE>

                  (i)      The Indenture Trustee shall, upon reasonable prior
written notice to the Indenture Trustee by the Class A Insurer, permit any
representative of the Class A Insurer, during the Indenture Trustee's normal
business hours, at its offices, to examine all books of account, records,
reports and other papers of the Indenture Trustee relating to the Class A Notes
or the Collateral, to make copies and extracts therefrom and to discuss the
Indenture Trustee's affairs and actions, as such affairs and actions relate to
the Indenture Trustee's duties with respect to the Class A Notes or the
Collateral, with the Indenture Trustee's officers and employees responsible for
carrying out the Indenture Trustee's duties with respect to the Collateral or
the Class A Notes. Any expenses incurred in connection with such examination
shall be payable by the Issuer to the Class A Insurer or the Indenture Trustee,
as applicable, in accordance with Section 5.08(a) of the Sale and Servicing
Agreement.

                  (j)      The Indenture Trustee shall, and agrees that it will
hold any proceeds of any claim under the Class A Note Policy in trust, solely
for the use and benefit of the Class A Noteholders.

                  SECTION 6.2. Rights of Indenture Trustee.

                  Except as otherwise provided in Section 6.1:

                  (a)      Before the Indenture Trustee acts or refrains from
acting, it may require an Officer's Certificate and/or an Opinion of Counsel.
The Indenture Trustee shall not be liable for any action it takes or omits to
take in good faith in reliance on an Officer's Certificate or Opinion of
Counsel.

                  (b)      The Indenture Trustee may execute any of the trusts
or powers hereunder or perform any duties hereunder either directly or by or
through agents or attorneys or a custodian or nominee and shall not be
responsible for the misconduct or negligence of any agent, attorney, custodian
or nominee appointed with due care.

                  (c)      The Indenture Trustee shall not be liable for any
action it takes or omits to take in good faith which it believes to be
authorized or within its rights or powers; provided, however, that the Indenture
Trustee's conduct does not constitute willful misconduct, negligence or bad
faith.

                  (d)      The Indenture Trustee shall not be deemed to have
knowledge of an Indenture Event of Default unless a Responsible Officer of the
Indenture Trustee has actual knowledge or has received written notice of such
Indenture Event of Default.

                  (e)      The Indenture Trustee may consult with counsel, and
the written advice or opinion of counsel with respect to legal matters relating
to this Indenture and the Class A Notes shall be full and complete authorization
and protection from liability in respect to any action taken, omitted or
suffered by it hereunder in good faith and in accordance with the written advice
or opinion of such counsel.

                  (f)      The Indenture Trustee shall be under no obligation to
exercise any of the rights and powers vested in it by this Indenture or the
other Basic Documents, or to institute, conduct or defend any litigation under
this Indenture or in relation to this Indenture, at the

                                     - 41 -

<PAGE>

request, order or direction of any of the Holders of Class A Notes, pursuant to
the provisions of this Indenture, unless it shall have been offered security or
indemnity reasonably satisfactory to it against the costs, expenses and
liabilities that may be incurred therein or thereby; provided, however, that the
Indenture Trustee shall, upon the occurrence of an Indenture Event of Default
(that has not been cured), exercise the rights and powers vested in it by this
Indenture with the same degree of care and skill in its exercise as a prudent
person would exercise or use under the circumstances in the conduct of such
person's own affairs.

                  (g)      Except during the continuance of an Indenture Event
of Default, the Indenture Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, order, approval, bond or
other paper or document, unless requested in writing to do so by the Majority
Noteholders or the Class A Insurer; provided, however, that if the payment
within a reasonable time to the Indenture Trustee of the costs, expenses or
liabilities likely to be incurred by it in the making of such investigation is,
in the opinion of the Indenture Trustee, not reasonably assured to the Indenture
Trustee by the security afforded to it by the terms of this Indenture, the
Indenture Trustee may require indemnity reasonably satisfactory to the Indenture
Trustee against such cost, expense or liability as a condition to so proceeding;
the reasonable expense of every such examination shall be paid by the requesting
Holders or the instructing party, as the case may be, or, if paid by the
Indenture Trustee, shall be reimbursed by the requesting Holders or the
instructing party, as the case may be, upon demand.

                  (h)      In no event shall the Indenture Trustee be liable for
any indirect, consequential, punitive or special damages, regardless of the form
of action and whether or not any such damages were foreseeable or contemplated.

                  (i)      Delivery of any reports, information and documents to
the Indenture Trustee provided for herein is for informational purposes only
(unless otherwise expressly stated herein) and the Indenture Trustee's receipt
of such shall not constitute constructive knowledge of any information contained
therein or determinable from information contained therein, including the
Issuer's compliance with any of its representations, warranties or covenants
hereunder (as to which the Indenture Trustee is entitled to rely exclusively on
Officers' Certificates).

                  (j)      The Indenture Trustee may conclusively rely and shall
be fully protected in acting or refraining from acting upon any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent,
order, approval or other paper or document believed by it to be genuine and to
have been signed or presented by the proper party or parties.

                  (k)      In the event the Indenture Trustee is also acting in
the capacity of Paying Agent, transfer agent or Note Registrar, it shall be
afforded all of the rights, protections, immunities and indemnities afforded to
the Indenture Trustee hereunder in each of its capacities hereunder.

                  (l)      In no event shall the Indenture Trustee be liable for
any act or omission on the part of the Issuer, the Seller or the Servicer or any
other Person. The Indenture Trustee shall not be responsible for monitoring or
supervising the Issuer, the Seller or the Servicer.

                                     - 42 -
<PAGE>

                  SECTION 6.3. Individual Rights of Indenture Trustee.

The Indenture Trustee in its individual or any other capacity may become the
owner or pledgee of Class A Notes and may otherwise deal with the Issuer or its
Affiliates with the same rights it would have if it were not Indenture Trustee.
Any Paying Agent, Note Registrar, co-registrar or co-paying agent may do the
same with like rights. However, the Indenture Trustee must comply with Section
6.15.

                  SECTION 6.4. Indenture Trustee's Disclaimer.

The Indenture Trustee shall not be responsible for and makes no representation
as to the validity, sufficiency or adequacy of this Indenture, the Trust
Property or the Class A Notes, shall not be accountable for the Issuer's use of
the proceeds from the Class A Notes, and shall not be responsible for any
statement of the Issuer in the Indenture or in any document issued in connection
with the sale of the Class A Notes or in the Class A Notes other than, the
Indenture Trustee's certificate of authentication.

                  SECTION 6.5. Notice of Indenture Events of Default.

If an Indenture Event of Default occurs and is continuing and if written notice
of the existence thereof has been delivered to a Responsible Officer of the
Indenture Trustee or a Responsible Officer of the Indenture Trustee has actual
knowledge thereof, the Indenture Trustee shall mail to the Class A Insurer, the
Rating Agency and each Class A Noteholder notice of the Indenture Event of
Default within five (5) Business Days after such knowledge or notice occurs.

                  SECTION 6.6. Reports by Indenture Trustee to Holders.

The Indenture Trustee shall on behalf of the Issuer deliver to each Class A
Noteholder such information as may be reasonably required to enable such Holder
to prepare its federal and state income tax returns. Such obligation shall be
satisfied if the Indenture Trustee provides such Class A Noteholder a form 1099.

                  SECTION 6.7. Compensation.

                  (a)      The Issuer shall pay to the Indenture Trustee from
time to time compensation for its services as agreed in writing and in
accordance with Section 5.08(a) of the Sale and Servicing Agreement. The
Indenture Trustee's compensation shall not be limited by any law on compensation
of a trustee of an express trust. The Issuer shall reimburse the Indenture
Trustee for all reasonable out-of-pocket expenses incurred or made by it,
including costs of collection, in addition to the compensation for its services,
except any such expense as may be attributable to its willful misconduct,
negligence or bad faith. Such expenses shall include securities transaction
charges relating to the investment of funds (net of investment earnings) on
behalf of the Indenture Trustee or the Trust Collateral Agent on deposit in the
Trust Accounts (except for the Certificate Distribution Account) and the
reasonable compensation and reasonable expenses, disbursements and advances of
the Indenture Trustee's counsel and of all persons not regularly in its employ;
provided, however, that the securities transaction charges referred to above
shall, in the case of certain Eligible Investments selected by the Servicer, be
waived for a particular investment in the event that any amounts are received by
the Trust

                                     - 43 -

<PAGE>

Collateral Agent from a financial institution in connection with the purchase of
such Eligible Investments. The Issuer agrees to indemnify the Indenture Trustee
and Trust Collateral Agent as set forth in Section 6.05 of the Sale and
Servicing Agreement. The Indenture Trustee agrees that its recourse to the
Issuer, the Seller and the Trust Property shall be limited to the right to
receive distributions in accordance with Section 5.08(a) of the Sale and
Servicing Agreement and Article V hereof and shall not be recourse to the assets
of any Class A Noteholder.

                  (b)      The Issuer's payment obligations to the Indenture
Trustee pursuant to this Section shall survive the discharge of this Indenture
and the earlier resignation or removal of the Indenture Trustee. When the
Indenture Trustee incurs expenses after the occurrence of an Indenture Event of
Default specified in Section 5.1(iv) or (v) with respect to the Issuer, the
expenses are intended to constitute expenses of administration under Title 11 of
the United States Code or any other applicable federal or state bankruptcy,
insolvency or similar law. Notwithstanding anything else set forth in this
Indenture or the Basic Documents, the Indenture Trustee agrees that the
obligations of the Issuer to the Indenture Trustee hereunder and under the Basic
Documents shall not be recourse to the assets of any Class A Noteholder.

                  SECTION 6.8. Replacement of Indenture Trustee.

                  (a)      The Indenture Trustee may resign at any time by so
notifying the Issuer and the Class A Insurer in writing at least sixty days
prior and upon the appointment and assumption of its obligations by a successor
Indenture Trustee which shall be acceptable to the Class A Insurer if such
succession occurs prior to the Class A Termination Date.

                  (b)      The Issuer, prior to the Class A Termination Date
with the prior written consent of the Class A Insurer, may remove the Indenture
Trustee by written notice if:

                           (i)      the Indenture Trustee fails to comply with
         Section 6.17 hereof;

                           (ii)     a court having jurisdiction in the premises
         in respect of the Indenture Trustee in an involuntary case or
         proceeding under federal or state banking or bankruptcy laws, as now or
         hereafter constituted, or any other applicable federal or state
         bankruptcy, insolvency or other similar law, shall have entered a
         decree or order granting relief or appointing a receiver, liquidator,
         assignee, custodian, trustee, conservator, sequestrator (or similar
         official) for the Indenture Trustee or for any substantial part of the
         Indenture Trustee's property, or ordering the winding-up or liquidation
         of the Indenture Trustee's affairs;

                           (iii)    an involuntary case under the federal
         bankruptcy laws, as now or hereafter in effect, or another present or
         future federal or state bankruptcy, insolvency or similar law is
         commenced with respect to the Indenture Trustee and such case is not
         dismissed within 60 days;

                           (iv)     the Indenture Trustee commences a voluntary
         case under any federal or state banking or bankruptcy laws, as now or
         hereafter constituted, or any other applicable federal or state
         bankruptcy, insolvency or other similar law, or consents to the
         appointment of or taking possession by a receiver, liquidator,
         assignee, custodian, trustee, conservator, sequestrator (or other
         similar official) for the Indenture Trustee or for any

                                     - 44 -

<PAGE>

         substantial part of the Indenture Trustee's property, or makes any
         assignment for the benefit of creditors or fails generally to pay its
         debts as such debts become due or takes any corporate action in
         furtherance of any of the foregoing;

                           (v)      failure to comply with any material covenant
         hereunder; or

                           (vi)     the Indenture Trustee otherwise becomes
         legally incapable of acting.

                  (c)      The Class A Insurer may remove the Indenture Trustee
for any reason by 30 days' prior written notice.

                  (d)      If the Indenture Trustee resigns or is removed or if
a vacancy exists in the office of Indenture Trustee for any reason (the
Indenture Trustee in such event being referred to herein as the retiring
Indenture Trustee), prior to the Class A Termination Date the Class A Insurer
may appoint a successor Indenture Trustee and if it fails to, the Issuer shall
promptly appoint a successor Indenture Trustee acceptable to the Class A
Insurer. After the Class A Termination Date, the Issuer may appoint a successor
Indenture Trustee without the consent of the Class A Insurer.

                  A successor Indenture Trustee shall deliver a written
acceptance of its appointment to the retiring Indenture Trustee and to the
Issuer. Thereupon the resignation or removal of the retiring Indenture Trustee
shall become effective, and the successor Indenture Trustee shall have all the
rights, powers and duties of the retiring Indenture Trustee under this Indenture
subject to satisfaction of the Rating Agency Condition. The successor Indenture
Trustee shall mail a notice of its succession to Class A Noteholders, the Class
A Insurer and the Rating Agency. The retiring Indenture Trustee shall promptly
transfer all property held by it as Indenture Trustee to the successor Indenture
Trustee.

                  If a successor Indenture Trustee that is, prior to the Class A
Termination Date, acceptable to the Class A Insurer does not take office within
60 days after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture Trustee or the Control Party may petition any court of competent
jurisdiction for the appointment of a successor Indenture Trustee that meets the
eligibility requirements set forth in Section 6.12 hereof.

                  If the Indenture Trustee fails to comply with Section 6.15,
any Noteholder, prior to the Class A Termination Date with the prior written
consent of the Class A Insurer, may petition any court of competent jurisdiction
for the removal of the Indenture Trustee and the appointment of a successor
Indenture Trustee acceptable to the Class A Insurer.

                  Any resignation or removal of the Indenture Trustee and
appointment of a successor Indenture Trustee pursuant to any of the provisions
of this Section shall not become effective until acceptance of appointment by
the successor Indenture Trustee acceptable to the Class A Insurer pursuant to
this Section 6.8 and payment of all fees and expenses owed to the outgoing
Indenture Trustee by the Servicer and the Issuer.

                                     - 45 -

<PAGE>

Notwithstanding the replacement of the Indenture Trustee pursuant to this
Section, the Issuer's and the Servicer's obligations under Section 6.7 shall
continue for the benefit of the retiring Indenture Trustee.

                  SECTION 6.9. Successor Indenture Trustee by Merger.

If the Indenture Trustee consolidates with, merges or converts into, or
transfers all or substantially all its corporate trust business or assets to,
another corporation or banking association, the resulting, surviving or
transferee corporation, provided it meets the eligibility requirements of
Section 6.12, without any further act shall be the successor Indenture Trustee.
The Indenture Trustee shall provide the Rating Agency and the Class A Insurer
written notice of any such transaction.

                  In case at the time such successor or successors by merger,
conversion or consolidation to the Indenture Trustee shall succeed to the trusts
created by this Indenture any of the Notes shall have been authenticated but not
delivered, any such successor to the Indenture Trustee may adopt the certificate
of authentication of any predecessor trustee, and deliver such Notes so
authenticated; and in case at that time any of the Notes shall not have been
authenticated, any successor to the Indenture Trustee may authenticate such
Notes either in the name of any predecessor hereunder or in the name of the
successor to the Indenture Trustee; and in all such cases such certificates
shall have the full force which it is anywhere in the Notes or in this Indenture
provided that the certificate of the Indenture Trustee shall have.

                  SECTION 6.10. The Issuer and the Indenture Trustee do hereby
appoint JPMorgan Chase Bank to act as the initial collateral agent on behalf of
the Indenture Trustee and JPMorgan Chase Bank hereby accepts such appointment.

                  SECTION 6.11. Appointment of Co-Indenture Trustee or Separate
Indenture Trustee.

                  (a)      Notwithstanding any other provisions of this
Indenture, at any time, for the purpose of meeting any legal requirement of any
jurisdiction in which any part of the Trust may at the time be located, the
Issuer and the Indenture Trustee acting jointly and at the expense of the
Issuer, prior to the Class A Termination Date with the consent of the Class A
Insurer, shall have the power and may execute and deliver all instruments to
appoint one or more Persons to act as a co-trustee or co-trustees, or separate
trustee or separate trustees, of all or any part of the Trust, and to vest in
such Person or Persons, in such capacity and for the benefit of the Class A
Noteholders and the Class A Insurer, such title to the Trust, or any part
thereof, and, subject to the other provisions of this Section, such powers,
duties, obligations, rights and trusts as the Issuer and the Indenture Trustee
may consider necessary or desirable. No co-trustee or separate trustee hereunder
shall be required to meet the terms of eligibility as a successor trustee under
Section 6.12 and no notice to Noteholders of the appointment of any co-trustee
or separate trustee shall be required under Section 6.8 hereof.

                  (b)      Every separate trustee and co-trustee shall, to the
extent permitted by law, be appointed and act subject to the following
provisions and conditions:

                                     - 46 -

<PAGE>

                           (i)      all rights, powers, duties and obligations
         conferred or imposed upon the Indenture Trustee shall be conferred or
         imposed upon and exercised or performed by the Indenture Trustee and
         such separate trustee or co-trustee jointly (it being understood that
         such separate trustee or co-trustee is not authorized to act separately
         without the Indenture Trustee joining in such act), except to the
         extent that under any law of any jurisdiction in which any particular
         act or acts are to be performed the Indenture Trustee shall be
         incompetent or unqualified to perform such act or acts, in which event
         such rights, powers, duties and obligations (including the holding of
         title to the Trust or any portion thereof in any such jurisdiction)
         shall be exercised and performed singly by such separate trustee or
         co-trustee, but solely at the direction of the Indenture Trustee;

                           (ii)     no trustee hereunder shall be personally
         liable by reason of any act or omission of any other trustee hereunder,
         including acts or omissions of predecessor or successor trustees; and

                           (iii)    the Indenture Trustee may at any time accept
         the resignation of or remove any separate trustee or co-trustee.

                  (c)      Any notice, request or other writing given to the
Indenture Trustee shall be deemed to have been given to each of the then
separate trustees and co-trustees, as effectively as if given to each of them.
Every instrument appointing any separate trustee or co-trustee shall refer to
this Agreement and the conditions of this Article VI. Each separate trustee and
co-trustee, upon its acceptance of the trusts conferred, shall be vested with
the estates or property specified in its instrument of appointment, either
jointly with the Indenture Trustee or separately, as may be provided therein,
subject to all the provisions of this Indenture, specifically including every
provision of this Indenture relating to the conduct of, affecting the liability
of, or affording protection to, the Indenture Trustee. Every such instrument
shall be filed with the Indenture Trustee.

                  (d)      Any separate trustee or co-trustee may at any time
constitute the Indenture Trustee, its agent or attorney-in-fact with full power
and authority, to the extent not prohibited by law, to do any lawful act under
or in respect of this Agreement on its behalf and in its name. If any separate
trustee or co-trustee shall die, dissolve, become insolvent, become incapable of
acting, resign or be removed, all of its estates, properties, rights, remedies
and trusts shall vest in and be exercised by the Indenture Trustee, to the
extent permitted by law, without the appointment of a new or successor trustee.

                  SECTION 6.12. Eligibility.

The Indenture Trustee under this Indenture shall at all times be a corporation
or banking association acceptable to the Class A Insurer having an office in the
same state as the location of the Corporate Trust Office as specified in this
Indenture; organized and doing business under the laws of such state or the
United States of America; authorized under such laws to exercise corporate trust
powers; having a combined capital and surplus of at least $100,000,000; having
long-term unsecured debt obligations which have at least the Required Long-Term
Debt Rating and subject to supervision or examination by federal or state
authorities. If such corporation

                                     - 47 -

<PAGE>

shall publish reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the
purpose of this Section, the combined capital and surplus of such corporation
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. In case at any time the Indenture
Trustee shall cease to be eligible in accordance with the provisions of this
Section, the Indenture Trustee shall resign immediately.

                  SECTION 6.13. Trust Collateral Agent to Follow Indenture
Trustee's Directions.

The Indenture Trustee hereby authorizes the Trust Collateral Agent to take such
action on its behalf, and to exercise such rights, remedies, powers and
privileges hereunder, as the Indenture Trustee may direct and as are
specifically authorized to be exercised by the Trust Collateral Agent by the
terms hereof, together with such actions, rights, remedies, powers and
privileges as are reasonably incidental thereto.

                  SECTION 6.14. Representations and Warranties of the Indenture
Trustee.

The Indenture Trustee represents and warrants to the Issuer as follows:

                           (i)      The Indenture Trustee is a banking
         corporation, duly organized and validly existing under the laws of New
         York and is authorized and licensed to conduct and engage in a banking
         and trust business under such laws.

                           (ii)     The Indenture Trustee has full corporate
         power, authority, and legal right to execute, deliver, and perform this
         Indenture, and has taken all necessary action to authorize the
         execution, delivery, and performance by it of this Indenture and the
         other Basic Documents to which it is a party.

                           (iii)    Each of this Indenture, and the other Basic
         Documents to which it is a party, has been duly executed and delivered
         by the Indenture Trustee.

                           (iv)     Each of this Indenture, and the other Basic
         Documents to which it is a party, is a legal, valid and binding
         obligation of the Indenture Trustee enforceable in accordance with its
         terms, subject to the effects of bankruptcy, insolvency,
         reorganization, or other similar laws affecting the enforcement of
         creditors' rights generally and to general principles of equity.

                           (v)      The execution, delivery and performance of
         this Indenture, and each other Basic Document to which it is a party,
         by the Indenture Trustee will not constitute a violation, to the best
         of the Indenture Trustee's knowledge, with respect to any order or
         decree of any court or any order, regulation or demand of any federal,
         State, municipal or governmental agency binding on the Indenture
         Trustee, which violation might have consequences that would materially
         and adversely affect the performance of its duties under this
         Indenture.

                           (vi)     The execution, delivery and performance of
         this Indenture, and each other Basic Document to which it is a party,
         by the Indenture Trustee do not require

                                     - 48 -

<PAGE>

         any approval or consent of any Person, do not conflict with the
         articles of incorporation or bylaws of the Indenture Trustee.

                  SECTION 6.15. Waiver of Setoffs. Each of the Indenture Trustee
and the Trust Collateral Agent hereby expressly waives any and all rights of
setoff that the Indenture Trustee or the Trust Collateral Agent may otherwise at
any time have under applicable law with respect to any Trust Account and agrees
that amounts in the Trust Accounts shall at all times be held and applied solely
in accordance with the provisions hereof and the Sale and Servicing Agreement or
under Article V hereunder.

                  SECTION 6.16. Control by the Class A Insurer. Subject to the
terms of Section 11.21 hereof and the definition of "Control Party," and unless
otherwise specifically set forth herein, the Indenture Trustee and the Trust
Collateral Agent shall comply with notices and instructions given by the Issuer
prior to the Class A Termination Date only if accompanied by the prior written
consent of the Class A Insurer, except that if any Indenture Event of Default
shall have occurred and be continuing, the Indenture Trustee and the Trust
Collateral Agent shall act upon and comply with notices and instructions given
by the Class A Insurer alone in the place and stead of the Issuer.

                  SECTION 6.17. Disqualification of the Indenture Trustee.

If the Indenture Trustee has or shall acquire a conflicting interest within the
meaning of the Trust Indenture Act of 1939, as amended, the Indenture Trustee
shall either eliminate such interest or resign to the extent in the manner
provided by and subject to the provisions of this Indenture.

                  SECTION 6.18. Authorization and Direction.

The Issuer hereby authorizes and directs the Indenture Trustee to execute the
Basic Documents to which it is a party.

                  SECTION 6.19. Action under the Intercreditor Agreement.

Before taking or omitting to take any action under the Intercreditor Agreement,
the Indenture Trustee may request and shall be entitled to receive direction
from the Control Party with respect to any action required to be taken by it
thereunder. The Indenture Trustee shall not be required to take any action or
omit to take any action in the absence of such consent.

                                  ARTICLE VII

                         Noteholders' Lists and Reports

                  SECTION 7.1. Issuer To Furnish To Indenture Trustee Names and
Addresses of Noteholders.

The Issuer will furnish or cause to be furnished to the Indenture Trustee (a)
not more than five days after each Record Date, a list, in such form as the
Indenture Trustee may reasonably require, of the names and addresses of the
Holders as of such Record Date, (b) at such other times as the Indenture Trustee
may request in writing, within 30 days after receipt by the Issuer

                                     - 49 -

<PAGE>

of any such request, a list of similar form and content as of a date not more
than 10 days prior to the time such list is furnished; provided, however, that
so long as the Indenture Trustee is the Note Registrar, no such list shall be
required to be furnished.

                  SECTION 7.2. Preservation of Information; Communications to
Noteholders.

The Indenture Trustee shall preserve, in as current a form as is reasonably
practicable, the names and addresses of the Holders contained in the most recent
list furnished to the Indenture Trustee as provided in Section 7.1 and the names
and addresses of Holders received by the Indenture Trustee in its capacity as
Note Registrar. The Indenture Trustee may destroy any list furnished to it as
provided in such Section 7.1 upon receipt of a new list so furnished.

                                  ARTICLE VIII

                      Accounts, Disbursements and Releases

                  SECTION 8.1. Collection of Money.

Except as otherwise expressly provided herein, the Indenture Trustee may demand
payment or delivery of, and shall receive and collect, directly and without
intervention or assistance of any fiscal agent or other intermediary, all money
and other property payable to or receivable by the Trust Collateral Agent
pursuant to the Sale and Servicing Agreement. The Indenture Trustee shall apply
all such money received by it, or cause the Trust Collateral Agent to apply all
money received by it as provided in this Indenture and the Sale and Servicing
Agreement. Except as otherwise expressly provided in this Indenture or in the
Sale and Servicing Agreement, if any default occurs in the making of any payment
or performance under any agreement or instrument that is part of the Trust
Property, the Indenture Trustee may at the expense of the Issuer take such
action as may be appropriate to enforce such payment or performance, including
the institution and prosecution of appropriate proceedings. Any such action
shall be without prejudice to any right to claim an Indenture Default or
Indenture Event of Default under this Indenture and any right to proceed
thereafter as provided in Article V.

                  SECTION 8.2. Release of Trust Property.

Subject to the payment of its fees and expenses pursuant to Section 6.7, the
Indenture Trustee may after the Termination Date, and when required by the
provisions of this Indenture shall, and shall cause the Trust Collateral Agent
to execute instruments to release property from the lien of this Indenture, in a
manner and under circumstances that are not inconsistent with the provisions of
this Indenture. No party relying upon an instrument executed by the Indenture
Trustee as provided in this Article VIII shall be bound to ascertain the
Indenture Trustee's authority, inquire into the satisfaction of any conditions
precedent or see to the application of any moneys.

                  SECTION 8.3. Opinion of Counsel.

The Indenture Trustee and the Class A Insurer shall receive at least seven days'
written notice when requested by the Issuer to take any action pursuant to
Section 8.2, accompanied by copies of any instruments involved, and the
Indenture Trustee and the Class A Insurer shall also require

                                     - 50 -

<PAGE>

as a condition to such action, an Opinion of Counsel in form and substance
satisfactory to the Indenture Trustee, and prior to the Class A Termination
Date, to the Class A Insurer, stating the legal effect of any such action,
outlining the steps required to complete the same, and concluding that all
conditions precedent to the taking of such action have been complied with and
such action will not materially and adversely impair the security for the Class
A Notes or the rights of the Class A Noteholders or the Class A Insurer in
contravention of the provisions of this Indenture; provided, however, that such
Opinion of Counsel shall not be required to express an opinion as to the fair
value of the Trust Property. Counsel rendering any such opinion may rely,
without independent investigation, on the accuracy and validity of any
certificate or other instrument delivered to the Indenture Trustee in connection
with any such action.

                                   ARTICLE IX

                             Supplemental Indentures

                  SECTION 9.1. Supplemental Indentures Without Consent of
Noteholders.

                  (a)      Without the consent of the Holders of any Class A
Notes but, prior to the Class A Termination Date, with the prior written consent
of the Class A Insurer, and with prior notice to the Rating Agency by the
Issuer, as evidenced to the Indenture Trustee, the Issuer and the Indenture
Trustee, when authorized by an Issuer Order, at any time and from time to time,
may enter into one or more indentures supplemental hereto, in form satisfactory
to the Indenture Trustee, and prior to the Class A Termination Date, the Class A
Insurer, for any of the following purposes; provided, however, if any party to
this Indenture is unable to sign any amendment due to its dissolution, winding
up or comparable circumstances, then the consent of the Noteholders and
Certificate holders representing at least 51% of the total current outstanding
Class A Note Balance and at least 51% of the current total Certificate Interest,
respectively and the consent of the Class A Insurer shall be sufficient to amend
this Agreement without such party's signature:

                           (i)      to correct or amplify the description of any
         property at any time subject to the lien of this Indenture, or better
         to assure, convey and confirm unto the Indenture Trustee any property
         subject or required to be subjected to the lien of this Indenture, or
         to subject to the lien of this Indenture additional property;

                           (ii)     to evidence the succession, in compliance
         with the applicable provisions hereof, of another person to the Issuer,
         and the assumption by any such successor of the covenants of the Issuer
         herein and in the Class A Notes contained;

                           (iii)    to add to the covenants of the Issuer, for
         the benefit of the Holders of the Class A Notes and the Class A
         Insurer, or to surrender any right or power herein conferred upon the
         Issuer;

                           (iv)     to convey, transfer, assign, mortgage or
         pledge any property to or with the Trust Collateral Agent;

                           (v)      to cure any ambiguity, to correct or
         supplement any provision herein or in any supplemental indenture which
         may be inconsistent with any other provision herein or in any
         supplemental indenture or to add any other provisions with

                                     - 51 -

<PAGE>

         respect to matters or questions arising under this Indenture or in any
         supplemental indenture; provided that such action shall not adversely
         affect the interests of the Holders of the Class A Notes; or

                           (vi)     to evidence and provide for the acceptance
         of the appointment hereunder by a successor Indenture Trustee with
         respect to the Notes and to add to or change any of the provisions of
         this Indenture as shall be necessary to facilitate the administration
         of the trusts hereunder by more than one Indenture Trustee, pursuant to
         the requirements of Article VI.

                  The Indenture Trustee is hereby authorized to join in the
execution of any such supplemental indenture and to make any further appropriate
agreements and stipulations that may be therein contained provided that such
action shall not adversely affect the interests of the Holders of the Notes.

                  (b)      The Issuer and the Indenture Trustee, when authorized
by an Issuer Order, may, also without the consent of any of the Holders of the
Class A Notes but, prior to the Class A Termination Date with the prior written
consent of the Class A Insurer, and with prior notice to the Rating Agency by
the Issuer, as evidenced to the Indenture Trustee, enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to, or
changing in any manner or eliminating any of the provisions of, this Indenture
or of modifying in any manner the rights of the Holders of the Class A Notes
under this Indenture; provided, however, that such action shall not, as
evidenced by an Opinion of Counsel, adversely affect in any material respect the
interests of any Noteholder.

                  SECTION 9.2. Supplemental Indentures with Consent of
Noteholders.

The Issuer and the Indenture Trustee, when authorized by an Issuer Order, also
may, with prior notice to the Rating Agency and with the consent of the Class A
Insurer, or if a Class A Insurer Default has occurred and is continuing, with
the consent of the Majority Noteholders, enter into an indenture or indentures
supplemental hereto for the purpose of modifying in any manner the rights of the
Holders of the Class A Notes under this Indenture; provided, however, if any
party to this Indenture is unable to sign any amendment due to its dissolution,
winding up or comparable circumstances, then the consent of the Class A
Noteholders and representing at least 51% of the total current outstanding Class
A Note Balance or the consent of the Class A Insurer shall be sufficient to
amend this Agreement without such party's signature; provided further, however,
that, no such supplemental indenture shall, without the consent of the Holder of
each Outstanding Note affected thereby:

                           (i)      change the time of payment of any
         installment of principal of or interest on any Class A Note, or reduce
         the principal amount thereof, the interest rate thereon or the
         Redemption Price with respect thereto, change the provision of this
         Indenture relating to the application of collections on, or the
         proceeds of the sale of, the Trust Property to payment of principal of
         or interest on the Class A Notes;

                           (ii)     impair the right to institute suit for the
         enforcement of the provisions of this Indenture requiring the
         application of funds available therefor, as

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<PAGE>

         provided in Article V, to the payment of any such amount due on the
         Class A Notes on or after the respective due dates thereof (or, in the
         case of redemption, on or after the Redemption Date);

                           (iii)    reduce the percentage of the Outstanding
         Amount of the Class A Notes, the consent of the Holders of which is
         required for any such supplemental indenture, or the consent of the
         Holders of which is required for any waiver of compliance with certain
         provisions of this Indenture or certain defaults hereunder and their
         consequences provided for in this Indenture;

                           (iv)     modify or alter the provisions of the
         proviso to the definition of the term "Outstanding Amount";

                           (v)      reduce the percentage of the Outstanding
         Amount of the Class A Notes required to direct the Indenture Trustee to
         direct the Issuer to sell or liquidate the Trust Property pursuant to
         Section 5.4;

                           (vi)     modify any provision of this Section except
         to increase any percentage specified herein or to provide that certain
         additional provisions of this Indenture or the Basic Documents cannot
         be modified or waived without the consent of the Holder of each
         Outstanding Note affected thereby;

                           (vii)    modify any of the provisions of this
         Indenture in such manner as to affect the calculation of the amount of
         any payment of interest or principal due on any Note on any
         Distribution Date (including the calculation of any of the individual
         components of such calculation) or to affect the rights of the Holders
         of Class A Notes to the benefit of any provisions for the mandatory
         redemption of the Class A Notes contained herein; or

                           (viii)   permit the creation of any Lien ranking
         prior to or on a parity with the Lien of this Indenture with respect to
         any part of the Trust Property or, except as otherwise permitted or
         contemplated herein or in any of the Basic Documents, terminate the
         Lien of this Indenture on any property at any time subject hereto or
         deprive the Holder of any Note of the security provided by the Lien of
         this Indenture.

                  The Issuer may determine whether or not any Class A Notes
would be affected by any supplemental indenture and any such determination shall
be conclusive upon the Holders of all Class A Notes, whether theretofore or
thereafter authenticated and delivered hereunder. The Indenture Trustee shall
not be liable for any such determination made in good faith.

                  Promptly after the execution by the Issuer and the Indenture
Trustee of any supplemental indenture pursuant to this Section, the Indenture
Trustee shall mail to the Class A Insurer and the Holders of the Class A Notes
to which such amendment or supplemental indenture relates a notice setting forth
in general terms the substance of such supplemental indenture. Any failure of
the Indenture Trustee to mail such notice, or any defect therein, shall not,
however, in any way impair or affect the validity of any such supplemental
indenture.

                  SECTION 9.3. Execution of Supplemental Indentures.

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<PAGE>

In executing, or permitting the additional trusts created by, any supplemental
indenture permitted by this Article IX or the modifications thereby of the
trusts created by this Indenture, the Class A Insurer and the Indenture Trustee
shall be entitled to receive, and subject to Sections 6.1 and 6.2, shall be
fully protected in relying upon, an Opinion of Counsel stating that the
execution of such supplemental indenture is authorized or permitted by this
Indenture. The Indenture Trustee may, but shall not be obligated to, enter into
any such supplemental indenture that affects the Indenture Trustee's own rights,
duties, liabilities or immunities under this Indenture or otherwise.

                  SECTION 9.4. Effect of Supplemental Indenture.

Upon the execution of any supplemental indenture pursuant to the provisions
hereof, this Indenture shall be and be deemed to be modified and amended in
accordance therewith with respect to the Class A Notes affected thereby, and the
respective rights, limitations of rights, obligations, duties, liabilities and
immunities under this Indenture of the Indenture Trustee, the Issuer and the
Holders of the Class A Notes shall thereafter be determined, exercised and
enforced hereunder subject in all respects to such modifications and amendments,
and all the terms and conditions of any such supplemental indenture shall be and
be deemed to be part of the terms and conditions of this Indenture for any and
all purposes.

                  SECTION 9.5. Reference in Class A Notes to Supplemental
Indentures.

Class A Notes authenticated and delivered after the execution of any
supplemental indenture pursuant to this Article IX may, and if required by the
Indenture Trustee shall, bear a notation in form approved by the Indenture
Trustee as to any matter provided for in such supplemental indenture. If the
Issuer or the Indenture Trustee shall so determine, new Class A Notes so
modified as to conform, in the opinion of the Indenture Trustee and the Issuer,
to any such supplemental indenture may be prepared and executed by the Issuer
and authenticated and delivered by the Indenture Trustee in exchange for
Outstanding Notes.

                                   ARTICLE X

                               Redemption of Notes

                  SECTION 10.1. Redemption.

                  (a)      The Class A Notes are subject to redemption in whole,
but not in part, at the direction of the Seller or the Servicer pursuant to
Section 10.01(a) of the Sale and Servicing Agreement, on any Distribution Date
on which the Servicer or the Seller exercises its option to redeem the Trust
Property pursuant to Section 10.01(a) of the Sale and Servicing Agreement for a
redemption price equal to the Redemption Price; provided, however, that the
Indenture Trustee on behalf of the Issuer has received funds sufficient to pay
the Redemption Price. The Issuer shall furnish the Class A Insurer and the
Rating Agency notice of such redemption. If the Class A Notes are to be redeemed
pursuant to this Section, the Issuer shall furnish notice of such election to
the Class A Insurer, the Trust Collateral Agent and the Indenture Trustee not
later than 45 days prior to the Redemption Date and promptly upon giving such
notice, the Issuer shall deposit or cause to be deposited with the Indenture
Trustee in the Note Distribution Account the

                                     - 54 -

<PAGE>

Redemption Price of the Class A Notes to be redeemed whereupon all such Class A
Notes shall be due and payable on the Redemption Date, together with other
amounts due and owing at such time under the Basic Documents, upon the
furnishing of a notice complying with Section 10.2 to each Holder of Notes and
the Class A Insurer.

                  (b)      [Reserved]

                  (c)      If amounts are to be paid to Class A Noteholders
pursuant to Section 10.01(a), the Issuer shall, to the extent practicable,
furnish notice of such event to the Indenture Trustee and the Class A Insurer
not later than 45 days prior to the Redemption Date whereupon all such amounts
shall be payable on the Redemption Date.

                  SECTION 10.2. Form of Redemption Notice.

Notice of redemption under Section 10.1(a) shall be given by the Indenture
Trustee by facsimile or by first-class mail, postage prepaid, transmitted or
mailed prior to the applicable Redemption Date to each Holder of the Class A
Notes, as of the close of business on the Record Date preceding the applicable
Redemption Date, at such Holder's address appearing in the Note Register.

                  All notices of redemption shall state:

                           (i)      the Redemption Date;

                           (ii)     the Redemption Price;

                           (iii)    that the Record Date otherwise applicable to
         such Redemption Date is not applicable and that payments shall be made
         only upon presentation and surrender of such Class A Notes and the
         place where such Class A Notes are to be surrendered for payment of the
         Redemption Price (which shall be the office or agency of the Issuer to
         be maintained as provided in Section 2.7); and

                           (iv)     that interest on the Class A Notes shall
         cease to accrue on the Redemption Date.

                  Notice of redemption of the Class A Notes shall be given by
the Indenture Trustee in the name and at the expense of the Issuer. Failure to
give notice of redemption, or any defect therein, to any Holder of any Class A
Note shall not impair or affect the validity of the redemption of any other
Note.

                  SECTION 10.3. Class A Notes Payable on Redemption Date.

The Class A Notes to be redeemed shall, following notice of redemption as
required by Section 10.2 (in the case of redemption pursuant to Section
10.1(a)), on the Redemption Date become due and payable at the Redemption Price
and (unless the Issuer shall default in the payment of the Redemption Price) no
interest shall accrue on the Redemption Price for any period after the date to
which accrued interest is calculated for purposes of calculating the Redemption
Price.

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<PAGE>

                                   ARTICLE XI

                                  Miscellaneous

                  SECTION 11.1. Compliance Certificates and Opinions, etc.

                  (a)      Upon any application or request by the Issuer or the
Class A Insurer to the Indenture Trustee or the Trust Collateral Agent to take
any action under any provision of this Indenture, the Issuer shall furnish to
the Indenture Trustee, or the Trust Collateral Agent, as the case may be, and to
the Class A Insurer, if such request is made by the Issuer, an Officer's
Certificate stating that all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with.

                  Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

                           (i)      a statement that each signatory of such
         certificate or opinion has read or has caused to be read such covenant
         or condition and the definitions herein relating thereto;

                           (ii)     a statement that, in the opinion of each
         such signatory, such signatory has made such examination or
         investigation as is necessary to enable such signatory to express an
         informed opinion as to whether or not such covenant or condition has
         been complied with; and

                           (iii)    a statement as to whether, in the opinion of
         each such signatory, such condition or covenant has been complied with.

                  (b)      Prior to the deposit of any Collateral or other
property or securities with the Trust Collateral Agent that is to be made the
basis for the release of any property or securities subject to the lien of this
Indenture, the Issuer shall, in addition to any obligation imposed in Section
11.1(a) or elsewhere in this Indenture, furnish to the Indenture Trustee, the
Class A Insurer and the Trust Collateral Agent an Officer's Certificate
certifying or stating the opinion of each person signing such certificate (which
may be based upon a certification of the Seller or the Servicer) as to the fair
value (within 90 days of such deposit) to the Issuer of the Collateral or other
property or securities to be so deposited.

                  (c)      Whenever the Issuer is required to furnish to the
Indenture Trustee, the Class A Insurer and the Trust Collateral Agent an
Officer's Certificate certifying or stating the opinion of any signer thereof as
to the matters described in clause (b) above, the Issuer shall also deliver to
the Indenture Trustee, the Class A Insurer and the Trust Collateral Agent an
Independent Certificate as to the same matters, if the fair value to the Issuer
of the securities to be so deposited and of all other such securities made the
basis of any such withdrawal or release since the commencement of the
then-current fiscal year of the Issuer, as set forth in the certificates
delivered pursuant to clause (b) above and this clause (c), is 10% or more of
the Outstanding Amount of the Class A Notes, but such a certificate need not be
furnished with respect to any securities so deposited, if the fair value thereof
to the Issuer as set forth in the related Officer's Certificate is less than
$25,000.

                                     - 56 -

<PAGE>

                  (d)      Other than with respect to the release of any
Purchased Loans, whenever any property or securities are to be released from the
Lien of this Indenture, the Issuer shall also furnish to the Trust Collateral
Agent and the Class A Insurer an Officer's Certificate certifying or stating the
opinion of each person signing such certificate as to the fair value (within 90
days of such release) of the property or securities proposed to be released and
stating that in the opinion of such person the proposed release will not impair
the security under this Indenture in contravention of the provisions hereof.

                  (e)      Whenever the Issuer is required to furnish to the
Indenture Trustee and the Class A Insurer an Officer's Certificate certifying or
stating the opinion of any signer thereof as to the matters described in clause
(d) above, the Issuer shall also furnish to the Trust Collateral Agent and the
Class A Insurer an Independent Certificate as to the same matters if the fair
value of the property or securities and of all other property other than
Purchased Loans, or securities released from the Lien of this Indenture since
the commencement of the then current calendar year, as set forth in the
certificates required by clause (d) above and this clause (e), equals 10% or
more of the Outstanding Amount of the Notes, but such certificate need not be
furnished in the case of any release of property or securities if the fair value
thereof as set forth in the related Officer's Certificate is less than $25,000.

                  (f)      Notwithstanding Section 2.9 or any other provision of
this Section, the Issuer may, without delivering any Officer's Certificates or
Independent Certificates (A) collect, liquidate, sell or otherwise dispose of
Contracts as and to the extent required by the Basic Documents and (B) instruct
the Trust Collateral Agent to make cash payments out of the Trust Accounts as
and to the extent permitted or required by the Basic Documents.

                  SECTION 11.2. Form of Documents Delivered to Indenture
Trustee.

In any case where several matters are required to be certified by, or covered by
an opinion of, any specified Person, it is not necessary that all such matters
be certified by, or covered by the opinion of, only one such Person, or that
they be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other
such Persons as to other matters, and any such Person may certify or give an
opinion as to such matters in one or several documents.

                  Any certificate or opinion of an Authorized Officer of the
Issuer may be based, insofar as it relates to legal matters, upon a certificate
or opinion of, or representations by, counsel, unless such officer knows, or in
the exercise of reasonable care should know, that the certificate or opinion or
representations with respect to the matters upon which his or her certificate or
opinion is based are erroneous. Any such certificate of an Authorized Officer or
Opinion of Counsel may be based, insofar as it relates to factual matters, upon
a certificate or opinion of, or representations by, an officer or officers of
the Servicer, the Seller or the Issuer, stating that the information with
respect to such factual matters is in the possession of the Servicer, the Seller
or the Issuer, unless such counsel knows, or in the exercise of reasonable care
should know, that the certificate or opinion or representations with respect to
such matters are erroneous.

                                     - 57 -

<PAGE>

                  Where any Person is required to make, give or execute two or
more applications, requests, consents, certificates, statements, opinions or
other instruments under this Indenture, they may, but need not, be consolidated
and form one instrument.

                  Whenever in this Indenture, in connection with any application
or certificate or report to the Indenture Trustee, it is provided that the
Issuer shall deliver any document as a condition of the granting of such
application, or as evidence of the Issuer's compliance with any term hereof, it
is intended that the truth and accuracy, at the time of the granting of such
application or at the effective date of such certificate or report (as the case
may be), of the facts and opinions stated in such document shall in such case be
conditions precedent to the right of the Issuer to have such application granted
or to the sufficiency of such certificate or report. The foregoing shall not,
however, be construed to affect the Indenture Trustee's right to conclusively
rely upon the truth and accuracy of any statement or opinion contained in any
such document as provided in Article VI.

                  SECTION 11.3. Acts of Noteholders.

                  (a)      Any request, demand, authorization, direction,
notice, consent, waiver or other action provided by this Indenture to be given
or taken by Class A Noteholders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Class A Noteholders in
person or by agents duly appointed in writing; and except as herein otherwise
expressly provided such action shall become effective when such instrument or
instruments are delivered to the Indenture Trustee, and, where it is hereby
expressly required, to the Issuer. Such instrument or instruments (and the
action embodied therein and evidenced thereby) are herein sometimes referred to
as the "Act" of the Class A Noteholders signing such instrument or instruments.
Proof of execution of any such instrument or of a writing appointing any such
agent shall be sufficient for any purpose of this Indenture and (subject to
Section 6.1) conclusive in favor of the Indenture Trustee and the Issuer, if
made in the manner provided in this Section.

                  (b)      The fact and date of the execution by any person of
any such instrument or writing may be proved in any customary manner of the
Indenture Trustee.

                  (c)      The ownership of Class A Notes shall be proved by the
Note Register.

                  (d)      Any request, demand, authorization, direction,
notice, consent, waiver or other action by the Holder of any Class A Notes shall
bind the Holder of every Class A Note issued upon the registration thereof or in
exchange therefor or in lieu thereof, in respect of anything done, omitted or
suffered to be done by the Indenture Trustee or the Issuer in reliance thereon,
whether or not notation of such action is made upon such Class A Note.

                  SECTION 11.4. Notices, etc. to Indenture Trustee, Class A
Insurer, Issuer and Rating Agency.

Any request, demand, authorization, direction, notice, consent, waiver or Act of
Class A Noteholders or other documents provided or permitted by this Indenture
to be made upon, given or furnished to or filed with:

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<PAGE>

                  (a)      The Indenture Trustee by any Class A Noteholder, the
Class A Insurer or by the Issuer shall be sufficient for every purpose hereunder
if personally delivered, delivered by overnight courier, mailed certified mail,
return receipt requested or by telecopy to: JPMorgan Chase Bank, 4 New York
Plaza, 6th Floor, New York, NY 10004, Attention: Institutional Trust
Services/Structured Finance, Telephone: (212) 623-5600, Telecopy: (212) 623-5932
and shall be deemed to have been duly given upon receipt to the Indenture
Trustee at its principal Corporate Trust Office, or

                  (b)      The Issuer by the Indenture Trustee, the Class A
Insurer or by any Class A Noteholder shall be sufficient for every purpose
hereunder if personally delivered, delivered by overnight courier, mailed
certified mail, return receipt requested or by telecopy to: Credit Acceptance
Corporation, Silver Triangle Building, 25505 West Twelve Mile Road, Suite 3000,
Southfield, Michigan 48034-8339, Attention: James D. Murray, Jr., Telephone:
(248) 353-2400 (ext. 884), Telecopy: (248) 827-8542. The Issuer shall promptly
transmit any notice received by it from the Class A Noteholders to the Indenture
Trustee and the Class A Insurer.

                  (c)      Notices required to be given to the Class A Insurer
by the Issuer, the Indenture Trustee or the Owner Trustee shall be in writing,
personally delivered, delivered by overnight courier, mailed certified mail,
return receipt requested to the following address: Radian Asset Assurance Inc.,
335 Madison Avenue, New York, New York 10017, Attention: Chief Risk Officer and
Chief Legal Officer; "Urgent Material Enclosed".

                  (d)      Notices required to be given to the Rating Agency by
the Issuer, the Indenture Trustee or the Owner Trustee shall be in writing,
personally delivered, delivered by overnight courier, or mailed certified mail,
return receipt requested to the following address: to Standard & Poor's Rating
Services, 55 Water Street, New York, New York 10041;

or, in each case, to such other address as shall be designated by written notice
from the applicable notice party to the other parties.

                  SECTION 11.5. Notices to Noteholders; Waiver.

Where this Indenture provides for notice to Class A Noteholders of any event,
such notice shall be sufficiently given (unless otherwise herein expressly
provided) if in writing and mailed, first-class, postage prepaid to each Class A
Noteholder affected by such event, at his address as it appears on the Note
Register, not later than the latest date, and not earlier than the earliest
date, prescribed for the giving of such notice. In any case where notice to
Class A Noteholders is given by mail, neither the failure to mail such notice
nor any defect in any notice so mailed to any particular Class A Noteholder
shall affect the sufficiency of such notice with respect to other Noteholders,
and any notice that is mailed in the manner herein provided shall conclusively
be presumed to have been duly given.

                  Where this Indenture provides for notice in any manner, such
notice may be waived in writing by any Person entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of
such notice. Waivers of notice by Noteholders shall be filed with the Indenture
Trustee but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such a waiver.

                                     - 59 -

<PAGE>

                  In case, by reason of the suspension of regular mail service
as a result of a strike, work stoppage or similar activity, it shall be
impractical to mail notice of any event to Noteholders when such notice is
required to be given pursuant to any provision of this Indenture, then any
manner of giving such notice as shall be satisfactory to the Indenture Trustee
shall be deemed to be a sufficient giving of such notice.

                  Where this Indenture provides for notice to the Rating Agency,
failure to give such notice shall not affect any other rights or obligations
created hereunder, and shall not under any circumstance constitute an Indenture
Default or Indenture Event of Default.

                  SECTION 11.6. Alternate Payment and Notice Provisions.

Notwithstanding any provision of this Indenture or any of the Class A Notes to
the contrary, the Issuer may enter into any agreement with any Holder of a Class
A Note providing for a method of payment, or notice by the Indenture Trustee or
any Paying Agent to such Holder, that is different from the methods provided for
in this Indenture for such payments or notices, provided that such methods are
reasonable and consented to by the Indenture Trustee (which consent shall not be
unreasonably withheld). The Issuer will furnish to the Indenture Trustee and the
Class A Insurer a copy of each such agreement and the Indenture Trustee will
cause payments to be made and notices to be given in accordance with such
agreements.

                  SECTION 11.7. Effect of Headings and Table of Contents.

The Article and Section headings herein and the Table of Contents are for
convenience only and shall not affect the construction hereof.

                  SECTION 11.8. Successors and Assigns.

All covenants and agreements in this Indenture and the Class A Notes by the
Issuer shall bind its successors and assigns, whether so expressed or not. All
agreements of the Indenture Trustee in this Indenture shall bind its successors.

                  SECTION 11.9. Separability.

In case any provision in this Indenture or in the Class A Notes shall be
invalid, illegal or unenforceable, the validity, legality, and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

                  SECTION 11.10. Benefits of Indenture.

Nothing in this Indenture or in the Class A Notes, express or implied, shall
give to any Person, other than the parties hereto and their successors
hereunder, and the Class A Noteholders, and any other party secured hereunder,
and any other person with an Ownership interest in any part of the Trust
Property, any benefit or any legal or equitable right, remedy or claim under
this Indenture.

                                     - 60 -

<PAGE>

                  SECTION 11.11. Legal Holidays.

In any case where the date on which any payment is due shall not be a Business
Day, then (notwithstanding any other provision of the Class A Notes or this
Indenture) payment need not be made on such date, but may be made on the next
succeeding Business Day with the same force and effect as if made on the date an
which nominally due, and no interest shall accrue for the period from and after
any such nominal date.

                  SECTION 11.12. GOVERNING LAW.

THIS INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK, INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW BUT OTHERWISE
WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS
AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
SUCH LAWS.

                  SECTION 11.13. Counterparts.

This Indenture may be executed in any number of counterparts, each of which so
executed shall be deemed to be an original, but all such counterparts shall
together constitute but one and the same instrument.

                  SECTION 11.14. Recording of Indenture.

If this Indenture is subject to recording in any appropriate public recording
offices, such recording is to be effected by the Issuer and at its expense
accompanied by an Opinion of Counsel (which may be counsel to the Indenture
Trustee or any other counsel reasonably acceptable to the Indenture Trustee) to
the effect that such recording is necessary either for the protection of the
Class A Noteholders or any other person secured hereunder or for the enforcement
of any right or remedy granted to the Indenture Trustee under this Indenture.

                  SECTION 11.15. Trust Obligation.

No recourse may be taken, directly or indirectly, with respect to the
obligations of the Issuer, the Seller, the Owner Trustee, the Trust Collateral
Agent or the Indenture Trustee on the Class A Notes or under this Indenture or
any certificate or other writing delivered in connection herewith or therewith,
against: (i) the Seller, the Indenture Trustee or the Trust Collateral Agent or
the Owner Trustee in its individual capacity, (ii) any owner of a beneficial
interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer,
director, employee or agent of the Issuer, the Seller, the Servicer, the
Indenture Trustee or the Trust Collateral Agent or the Owner Trustee in its
individual capacity, any holder of a beneficial interest in the Issuer or of any
successor or assign of the Seller, the Servicer, the Indenture Trustee or the
Trust Collateral Agent or the Owner Trustee in its individual capacity, except
as any such Person may have expressly agreed (it being understood that the
Indenture Trustee or the Trust Collateral Agent and the Owner Trustee have no
such obligations in their individual capacity) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or
failure to pay any installment or

                                     - 61 -

<PAGE>

call owing to such entity. For all purposes of this Indenture, in the
performance of any duties or obligations of the Issuer hereunder, the Owner
Trustee shall be subject to, and entitled to the benefits of, the terms and
provisions of Article VI, VII and VIII of the Trust Agreement.

                  SECTION 11.16. No Petition.

The Indenture Trustee, by entering into this Indenture, and each Class A
Noteholder, by accepting a Class A Note, hereby covenant and agree that they
will not at any time institute against the Seller or the Issuer, or join in any
institution against the Seller or the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other proceedings under
any United States federal or state bankruptcy or similar law.

                  SECTION 11.17. Inspection.

The Issuer agrees that, on reasonable prior notice, it will permit any
representative of the Indenture Trustee or the Class A Insurer, during the
Issuer's normal business hours, to examine all the books of account, records,
reports, and other papers of the Issuer, to make copies and extracts therefrom,
to cause such books to be audited by independent certified public accountants,
and to discuss the Issuer's affairs, finances and accounts with the Issuer's
officers, employees, and independent certified public accountants, all at such
reasonable times and as often as may be reasonably requested. The Indenture
Trustee shall and shall cause its representatives to hold in confidence all such
information except to the extent disclosure may be required by law or in
connection with litigation, and except to the extent that the Indenture Trustee
may reasonably determine that such disclosure is consistent with its obligations
hereunder and under the Basic Documents.

                  SECTION 11.18. Maximum Interest Payable.

The Issuer, the Indenture Trustee and the Holders of the Class A Notes
specifically intend and agree to limit contractually the amount of interest
payable under this Indenture, the Class A Notes and all other instruments and
agreements related hereto and thereto to the maximum amount of interest lawfully
permitted to be charged under applicable law. Therefore, none of the terms of
this Indenture, the Class A Notes or any instrument pertaining to or relating to
or executed in connection with this Indenture or the Class A Notes shall ever be
construed to create a contract to pay interest (or amounts deemed to be interest
under applicable law) at a rate in excess of the maximum rate permitted to be
charged under applicable law, and neither the Issuer nor any other party liable
or to become liable hereunder, under the Class A Notes or under any other
instruments and agreements related hereto and thereto shall ever be liable for
interest in excess of the amount determined at such maximum rate, and the
provisions of this Section shall control over all other provisions of this
Indenture, the Class A Notes or any other instrument pertaining to or relating
to the transactions herein or therein contemplated. If any amount of interest
taken or received by the Indenture Trustee or any Holder of a Class A Note shall
be in excess of said maximum amount of interest which, under applicable law,
could lawfully have been collected by the Indenture Trustee or such Holder
incident to such transactions, then such excess shall be deemed to have been the
result of a mathematical error by all parties hereto and shall be automatically
applied to the reduction of the principal amount owing under the Class A Notes
or if such excessive interest exceeds the unpaid principal balance of the Class
A Notes,

                                     - 62 -

<PAGE>

such excess shall be refunded promptly by the Person receiving such amount to
the party paying such amount. All amounts paid or agreed to be paid in
connection with such transactions which would under applicable law be deemed
"interest" shall, to the extent permitted by such applicable law, be amortized,
prorated, allocated and spread throughout the stated term of the Indenture.
"Applicable law" as used in this paragraph means that law in effect from time to
time which permits the charging and collection of the highest permissible
lawful, nonusurious rate of interest on the transactions herein contemplated
including laws of each State which may be held to be applicable and of the
United States of America, and "maximum rate" as used in this paragraph means,
with respect to each of the Class A Notes, the maximum lawful, nonusurious rates
of interest (if any) which under applicable law may be charged to the Issuer
from time to time with respect to such Class A Notes.

                  SECTION 11.19. No Legal Title in Holders.

No Holder of a Class A Note shall have legal title to any part of the Trust
Property. No transfer, by operation of law or otherwise, of any Note or other
right, title and interest of any Holder of a Class A Note in and to the Trust
Property or hereunder shall operate to terminate this Indenture or the trusts
hereunder or entitle any successor or transferee of such Holder to an accounting
or to the transfer to it of legal title to any part of the Trust Property.

                  SECTION 11.20. Third Party Beneficiary.

The parties hereto acknowledge and agree that the Class A Insurer and the Class
A Noteholders are express third party beneficiaries of this Indenture.

                  SECTION 11.21. Class A Insurer Control Rights. Notwithstanding
anything herein or in any other Basic Document to the contrary, during the
continuance of a Class A Insurer Default, any voting, consent or control rights
granted to the Class A Insurer hereunder or under any other Basic Document shall
be suspended and shall instead be made by the Majority Noteholders; provided,
however, that upon the cure of such Class A Insurer Default, such voting,
consent and control rights shall be reinstated.

                      [THIS SPACE LEFT INTENTIONALLY BLANK]

                                     - 63 -

<PAGE>

                  IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have
caused this Indenture to be duly executed by their respective officers, hereunto
duly authorized, all as of the day and year first above written.

                           CREDIT ACCEPTANCE AUTO DEALER LOAN
                           TRUST 2003-1

                           By: Wachovia Bank of Delaware, National Association,
                               not in its individual capacity but solely as
                               Owner Trustee,

                           By: /S/ Sterling C. Correia
                               ------------------------------------------------
                               Name: Sterling C. Correia
                               Title: Vice President

                           JPMORGAN CHASE BANK, not in its individual capacity
                           but solely as Indenture Trustee,

                           By: /S/ Esther D. Antoine
                               ------------------------------------------------
                               Name: Esther D. Antoine
                               Title: Trust Officer

                           [Indenture Signature Page]

                                     - 64 -

<PAGE>

                                                                       EXHIBIT A

                              FORM OF CLASS A NOTE

                   SEE ATTACHED PAGES FOR CERTAIN DEFINITIONS

                  UNLESS THIS CLASS A NOTE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"),
TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY CLASS A NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

                  THIS CLASS A NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE
APPLICABLE SECURITIES LAWS OF ANY STATE. ACCORDINGLY, TRANSFER OF THIS CLASS A
NOTE IS SUBJECT TO CERTAIN RESTRICTIONS SET FORTH IN THE INDENTURE. BY ITS
ACCEPTANCE OF THIS CLASS A NOTE THE HOLDER OF THIS CLASS A NOTE IS DEEMED TO
REPRESENT TO THE SELLER AND THE INDENTURE TRUSTEE THAT IT IS A "QUALIFIED
INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT AND IS
ACQUIRING THIS NOTE FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR
AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QUALIFIED
INSTITUTIONAL BUYERS).

                  NO SALE, PLEDGE OR OTHER TRANSFER OF A CLASS A NOTE SHALL BE
MADE UNLESS SUCH SALE, PLEDGE OR OTHER TRANSFER IS (A) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (B) FOR SO LONG AS THE CLASS A
NOTES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT TO
A PERSON THE TRANSFEROR REASONABLY BELIEVES AFTER DUE INQUIRY IS A "QUALIFIED
INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT
OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (C) PURSUANT TO
ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT, THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED, AND IN EACH OF THE
FOREGOING CASES, IS MADE IN ACCORDANCE WITH SAID ACT AND THE APPLICABLE STATE
SECURITIES AND BLUE SKY LAWS. THE INDENTURE TRUSTEE MAY REQUIRE AN OPINION OF
COUNSEL TO BE DELIVERED TO IT IN CONNECTION WITH ANY TRANSFER OF THE NOTES
PURSUANT TO CLAUSES (A) OR (C) ABOVE. ALL OPINIONS OF COUNSEL

                                      A-1

<PAGE>

REQUIRED IN CONNECTION WITH ANY TRANSFER SHALL BE BY COUNSEL REASONABLY
ACCEPTABLE TO THE INDENTURE TRUSTEE.

                  EACH TRANSFEREE OF THIS CLASS A NOTE IS DEEMED TO REPRESENT
AND WARRANT THAT, WITH RESPECT TO THE SOURCE OF FUNDS TO BE USED BY SUCH
TRANSFEREE TO ACQUIRE THIS CLASS A NOTE (THE "SOURCE") EITHER (A) SUCH SOURCE IS
NOT AN "EMPLOYEE BENEFIT PLAN" (WITHIN THE MEANING OF SECTION 3(3) OF ERISA), A
"PLAN" (WITHIN THE MEANING OF SECTION 4975(E)(1) OF THE CODE) OR A PLAN THAT IS
SUBJECT TO ANY SUBSTANTIALLY SIMILAR PROVISION OF ANY FEDERAL, STATE OR LOCAL
LAW, OR A PERSON USING ASSETS OF ANY SUCH PLAN, OR (B) THE ACQUISITION AND
HOLDING OF THIS CLASS A NOTE BY SUCH SOURCE WILL NOT CONSTITUTE OR RESULT IN A
NONEXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA, SECTION 4975 OF THE
CODE OR ANY SUBSTANTIALLY SIMILAR PROVISION OF ANY FEDERAL, STATE OR LOCAL LAW.

                                      A-2

<PAGE>

REGISTERED

                                                                 CUSIP 22530MAA2

No. A-1

                  THE PRINCIPAL OF THIS CLASS A NOTE IS PAYABLE IN INSTALLMENTS
AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS CLASS
A NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

                 CREDIT ACCEPTANCE AUTO DEALER LOAN TRUST 2003-1

                        2.77% CLASS A ASSET BACKED NOTES

                  Credit Acceptance Auto Dealer Loan Trust 2003-1, a statutory
trust organized and existing under the laws of the State of Delaware (herein
referred to as the "Issuer"), for value received, hereby promises to pay to CEDE
& CO., or registered assigns, the principal sum of ONE HUNDRED MILLION DOLLARS
($100,000,000) payable on each Distribution Date in an amount equal to the
aggregate amount, if any, payable from the Note Distribution Account in respect
of principal on the Class A Notes pursuant to Section 3.1 of the Indenture and
Section 5.09 of the Sale and Servicing Agreement until the Class A Note Balance
is reduced to zero; provided, however, that the entire unpaid principal amount
of this Class A Note shall be due and payable on June 16, 2008 (the "Stated
Final Maturity"). The Issuer will pay interest on this Class A Note at the rate
per annum shown above (the "Class A Note Rate"), which shall be due and payable
on each Distribution Date until the principal of this Class A Note is paid, on
the principal amount of this Class A Note outstanding on the last day of the
immediately preceding Collection Period. Interest on this Class A Note will
accrue for each Distribution Date from the preceding Distribution Date to (or,
in the case of the initial Distribution Date, from the Closing Date) but
excluding the current Distribution Date. Interest will be computed on the basis
of a 360-day year and twelve thirty day months.

                  This Class A Note is one of a duly authorized issue of notes
of the Issuer, designated as its 2.77% Class A Asset Backed Notes (the "Class A
Notes"), issued under an Indenture dated as of June 27, 2003 (such indenture, as
supplemented or amended, is herein called the "Indenture"), between the Issuer
and JPMorgan Chase Bank, as indenture trustee (the "Indenture Trustee", which
term includes any successor Indenture Trustee under the Indenture), to which
Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights and obligations thereunder of the Issuer, the
Indenture Trustee and the Holders of the Class A Notes. The Class A Notes are
subject to all terms of the Indenture and the Sale and Servicing Agreement. All
terms used in this Class A Note that are defined in the Indenture, as
supplemented or amended, shall have the meanings assigned to them in or pursuant
to the Indenture, as so supplemented or amended.

                  The Class A Notes are and will be equally and ratably secured
by the collateral pledged as security therefor as provided in the Indenture.

                                      A-3

<PAGE>

                  On each Distribution Date, Holders of the Class A Notes will
be entitled to the Class A Interest Distributable Amount and its Class A
Principal Distributable Amount in accordance with the terms of the Indenture.
"Distribution Date" means the fifteenth day of each month, or, if any such date
is not a Business Day, the next succeeding Business Day, commencing July 15,
2003.

                  The Class A Notes are entitled to the benefits of the Class A
Note Insurance Policy issued by Radian Asset Assurance Inc. (the "Class A
Insurer"). The Class A Insurer is obligated to pay in accordance with the terms
of the Class A Note Insurance Policy as described in the "Statement of
Insurance" attached hereto.

                  As described above, the entire unpaid principal amount of this
Class A Note shall be due and payable on the earlier of the Stated Final
Maturity and the Redemption Date, if any, pursuant to Section 10.1(a) of the
Indenture. Notwithstanding the foregoing, the entire unpaid principal amount of
the Class A Notes shall be due and payable if an Indenture Event of Default
shall have occurred and be continuing, and the Class A Notes have been
accelerated subject to the terms of the Indenture.

                  All principal payments on the Class A Notes shall be made pro
rata to the Class A Noteholders entitled thereto.

                  Upon written notice from the Issuer, the Indenture Trustee
shall notify the Person in whose name a Class A Note is registered at the close
of business on the Record Date preceding the Distribution Date on which the
Issuer expects that the final installment of principal of and interest on such
Class A Note will be paid. Such notice shall be mailed or transmitted by
facsimile prior to such final Distribution Date and shall specify that such
final installment will be payable only upon presentation and surrender of such
Class A Note and shall specify the place where such Class A Note may be
presented and surrendered for payment of such installment. Notices in connection
with purchases of Class A Notes shall be mailed to Class A Noteholders as
provided in the Indenture.

                  Distributions required to be made to Class A Noteholders on
any Distribution Date shall be made to each Class A Noteholder of record on the
preceding Record Date either by wire transfer, in immediately available funds,
to the account of such Holder at a bank or other entity having appropriate
facilities therefor, if (i) such Class A Noteholder shall have provided to the
Note Registrar appropriate written instructions at least ten (10) Business Days
prior to such Distribution Date and such Holder's Notes in the aggregate
evidence a denomination of not less than $100,000 and integral multiples of
$1,000 or (ii) such Class A Noteholder is the Seller, or an Affiliate thereof,
or, if not, by check mailed to such Class A Noteholder at the address of such
holder appearing in the Note Register.

                  The Issuer shall pay interest on overdue installments of
interest on the Class A Notes at the Class A Note Rate to the extent lawful.

                  As provided in the Indenture, the Class A Notes may be
redeemed pursuant to Section 10.1(a) of the Indenture, in whole, but not in
part, at the option of the Servicer or the

                                      A-4

<PAGE>

Seller, on any Distribution Date on or after the date on which the Class A Note
Balance is less than or equal to 15% of the initial Class A Note Balance.

                  As provided in the Indenture and subject to certain
limitations set forth therein, the transfer of this Class A Note may be
registered on the Note Register upon surrender of this Class A Note for
registration of transfer at the office or agency designated by the Issuer
pursuant to the Indenture, (i) accompanied by a written instrument of transfer
in form satisfactory to the Indenture Trustee and the Note Registrar duly
executed by, the Holder hereof or his attorney duly authorized in writing, and
(ii) accompanied by such other documents as the Indenture Trustee may require,
and thereupon one or more new Class A Notes of authorized denominations and in
the same aggregate principal amount will be issued to the designated transferee
or transferees. No service charge will be charged for any registration of
transfer or exchange of this Class A Note, but the Indenture Trustee may require
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection with any such transfer or exchange of the Class A
Notes.

                  Each Noteholder, by acceptance of a Class A Note covenants and
agrees that no recourse may be taken, directly or indirectly, with respect to
the obligations of the Issuer, the Seller, the Servicer, the Owner Trustee, the
Indenture Trustee or the Trust Collateral Agent under the Indenture or any
certificate or other writing delivered in connection herewith or therewith,
against (i) the Seller, the Servicer, the Indenture Trustee or the Trust
Collateral Agent or the Owner Trustee, (ii) any owner of a beneficial interest
in the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director
or employee of the Issuer, the Seller, the Servicer, the Indenture Trustee or
the Trust Collateral Agent or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Seller, the Servicer, the
Owner Trustee or the Indenture Trustee or the Trust Collateral Agent or of any
successor or assign of the Seller, the Servicer, the Indenture Trustee, the
Owner Trustee in its individual capacity, or the Trust Collateral Agent except
as any such Person may have expressly agreed (it being understood that the
Indenture Trustee or the Trust Collateral Agent and the Owner Trustee have no
such obligations in their individual capacity) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or
failure to pay any installment or call owing to such entity.

                  Each Class A Noteholder, by acceptance of a Class A Note,
covenants and agrees that by accepting the benefits of the Indenture that such
Class A Noteholder will not at any time institute against the Seller or the
Issuer or join in any institution against the Seller or the Issuer 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 Class A Notes,
the Indenture or the Basic Documents. In addition, each Class A Noteholder, by
acceptance of a Class A Note, agrees to treat the Class A Notes as indebtedness
of the Issuer.

                  Prior to the due presentment for registration of transfer of
this Class A Note, the Issuer, the Indenture Trustee, the Class A Insurer and
the Note Registrar and any agent of the Issuer, the Indenture Trustee, the Class
A Insurer and the Note Registrar may treat the Person in whose name this Class A
Note (as of the day of determination or as of such other date as may be
specified in the Indenture) is registered as the owner hereof for all purposes,
whether or not this

                                      A-5

<PAGE>

Class A Note be overdue, and neither the Issuer, the Indenture Trustee, the Note
Registrar, the Class A Insurer nor any such agent shall be bound by notice to
the contrary.

                  The term "Issuer" as used in this Class A Note includes any
successor to the Issuer under the Indenture.

                  The Issuer is permitted by the Indenture, under certain
circumstances, to merge or consolidate, subject to the rights of the Indenture
Trustee, the Class A Insurer and the Holders of Class A Notes under the
Indenture.

                  The Class A Notes are issuable only in registered form in
denominations as provided in the Indenture, subject to certain limitations
therein set forth.

                  This Class A Note and the Indenture shall be construed in
accordance with the laws of the State of New York, without reference to its
conflict of law provisions, and the obligations, rights and remedies of the
parties hereunder and thereunder shall be determined in accordance with such
laws.

                  No reference herein to the Indenture and no provision of this
Class A Note or of the Indenture shall alter or impair the obligation of the
Issuer, which is absolute and unconditional, to pay the principal of and
interest on this Class A Note at the times, place, and rate, and in the coin or
currency herein prescribed.

                  Anything herein to the contrary notwithstanding, except as
expressly provided in the Indenture or the Basic Documents, neither Wachovia
Bank of Delaware, National Association in its individual capacity, any owner of
a beneficial interest in the Issuer, nor any of their respective partners,
beneficiaries, agents, officers, directors, employees or successors or assigns
shall be personally liable for, nor shall recourse be had to any of them for,
the payment of principal of or interest on, or performance of, or omission to
perform, any of the covenants, obligations or indemnifications contained in this
Class A Note or the Indenture, it being expressly understood that said
covenants, obligations and indemnifications have been made by the Owner Trustee
for the sole purposes of binding the interests of the Owner Trustee in the
assets of the Issuer. The Holder of this Class A Note by the acceptance hereof
agrees that except as expressly provided in the Indenture or the Basic
Documents, in the case of an Indenture Event of Default, the Holder shall have
no claim against any of the foregoing for any deficiency, loss or claim
therefrom; provided, however, that nothing contained herein shall be taken to
prevent recourse to, and enforcement against, the assets of the Issuer for any
and all liabilities, obligations and undertakings contained in the Indenture or
in this Class A Note.

                  The principal of and interest on this Class A Note are payable
in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts. All payments
made by the Issuer with respect to this Class A Note shall be applied first to
interest due and payable on this Class A Note as provided above and then to the
unpaid principal of this Class A Note.

                  Unless the certificate of authentication hereon has been
executed by the Indenture Trustee whose name appears below by manual signature,
this Class A Note shall not be entitled to any benefit under the Indenture
referred to on the reverse hereof, or be valid or obligatory for any purpose.

                                      A-6

<PAGE>

                  IN WITNESS WHEREOF, the Issuer has caused this instrument to
be signed, manually or in facsimile, by its Authorized Officer as of the date
set forth below.

                                           CREDIT ACCEPTANCE AUTO DEALER LOAN
                                           TRUST 2003-1

                                           By: WACHOVIA BANK OF DELAWARE,
                                               NATIONAL ASSOCIATION, not in its
                                               individual capacity but solely as
                                               Owner Trustee under the Trust
                                               Agreement

                                               By: /s/ Sterling C. Correia
                                                   -----------------------
                                                   Name: Sterling C. Correia
                                                   Title: Vice President

                                      A-7

<PAGE>

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

                  This is one of the Class A Notes designated above and referred
to in the within-mentioned Indenture.

Date:                                 JPMORGAN CHASE BANK, not in its individual
                                      capacity but solely as Indenture Trustee,

                                      by: ___________________________________
                                      Authorized Signatory

                                      A-8

<PAGE>

                                   ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

                  FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto ________________________________________________________________
                                (name and address of assignee)

the within Class A Note and all rights thereunder, and hereby irrevocably
constitutes and appoints, attorney, to transfer said Class A Note on the books
kept for registration thereof, with full power of substitution in the premises.

                                      A-9

<PAGE>

                             STATEMENT OF INSURANCE

                                      A-10

<PAGE>

                                                                      SCHEDULE A
                                                                    to Indenture

              PERFECTION REPRESENTATIONS, WARRANTIES AND COVENANTS

         In addition to the representations, warranties and covenants contained
in the Indenture, the Issuer hereby represents, warrants, and covenants to the
Trust, the Trust Collateral Agent and the Indenture Trustee as follows on the
Closing Date and on each Distribution Date on which the Trust purchases Dealer
Loans, in each case only with respect to the Collateral pledged to the Indenture
Trustee on the Closing Date or the relevant Distribution Date:

                                     GENERAL

1.       The Indenture creates a valid and continuing security interest (as
defined in UCC Section 9-102) in the Collateral in favor of the Indenture
Trustee, which security interest is prior to all other Liens, and is enforceable
as such as against creditors of and purchasers from and assignees of the Trust.

2.       Each Contract constitutes "tangible chattel paper" or a "payment
intangible", within the meaning of UCC Section 9-102. Each Dealer Loan
constitutes a "payment intangible" or a "general intangible" within the meaning
of UCC Section 9-102.

3.       Each Dealer Agreement constitutes either a "general intangible" or
"tangible chattel paper" within the meaning of UCC Section 9-102.

4.       The Trust has taken or will take all steps necessary actions with
respect to the Dealer Loans to perfect its security interest in the Dealer Loans
and in the property securing the Dealer Loans.

                                    CREATION

1.       The Trust owns and has good and marketable title to the Collateral,
free and clear of any Lien, claim or encumbrance of any Person, excepting only
liens for taxes, assessments or similar governmental charges or levies incurred
in the ordinary course of business that are not yet due and payable or as to
which any applicable grace period shall not have expired, or that are being
contested in good faith by proper proceedings and for which adequate reserves
have been established, but only so long as foreclosure with respect to such a
lien is not imminent and the use and value of the property to which the Lien
attaches is not impaired during the pendency of such proceeding.

                                   PERFECTION

1.       The Trust has caused the filing of all appropriate financing statements
in the proper filing office in the appropriate jurisdictions under applicable
law in order to perfect the security interest in the Collateral granted to the
Indenture Trustee under the Indenture.

                                      A-1

<PAGE>

2.       With respect to Collateral that constitutes tangible chattel paper,
such tangible chattel paper is in the possession of the Servicer, in its
capacity as custodian for the Trust and the Trust Collateral Agent, and the
Trust Collateral Agent has received a written acknowledgment from the Servicer,
in its capacity as custodian, that it is holding such tangible chattel paper
solely on its behalf and for the benefit of the Trust Collateral Agent, the
Seller, the Trust and the relevant Dealer(s). All financing statements filed or
to be filed against the Trust in favor of the Indenture Trustee in connection
with this Indenture describing the Trust Property contain a statement to the
following effect: "A purchase of or security interest in any collateral
described in this financing statement will violate the rights of the Secured
Party."

                                    PRIORITY

1.       Other than the security interest granted to the Indenture Trustee
pursuant to this Indenture, the Trust has not pledged, assigned, sold, granted a
security interest in, or otherwise conveyed any of the Trust Property. None of
the Originator, the Servicer nor the Seller has authorized the filing of, or is
aware of any financing statements against either the Seller, the Originator or
the Trust that includes a description of the Collateral and proceeds related
thereto other than any financing statement: (i) relating to the sale of the
Originator Property by the Originator to the Seller under the Contribution
Agreement; (ii) relating to the security interest granted to the Trust under the
Sale and Servicing Agreement; (iii) relating to the security interest granted to
the Indenture Trustee under the Indenture; or (iv) that has been terminated or
amended to reflect a release of the Collateral.

2.       Neither the Seller, the Originator nor the Trust is aware of any
judgment, ERISA or tax lien filings against either the Seller, the Originator or
the Trust.

3.       None of the tangible chattel paper that constitutes or evidences the
Contracts or the Dealer Agreements has any marks or notations indicating that it
has been pledged, assigned or otherwise conveyed to any Person other than the
Originator, the Servicer, the Seller, the Trust, a collection agent or the
Indenture Trustee.

                     SURVIVAL OF PERFECTION REPRESENTATIONS

1.       Notwithstanding any other provision of the Agreement, the Contribution
Agreement, the Indenture or any other Basic Document, the Perfection
Representations, Warranties and Covenants contained in this Schedule shall be
continuing, and remain in full force and effect (notwithstanding any replacement
of the Servicer or termination of Servicer's rights to act as such) until such
time as all obligations under the Sale and Servicing Agreement, Contribution
Agreement and the Indenture have been finally and fully paid and performed.

                                    NO WAIVER

1.       The parties hereto: (i) shall not, without obtaining a confirmation of
the then-current rating of the Class A Notes (without giving effect to the Class
A Note Insurance Policy), waive any of the Perfection Representations,
Warranties or Covenants; (ii) shall provide the Rating Agency with prompt
written notice of any breach of the Perfection Representations, Warranties or
Covenants, and shall not, without obtaining a confirmation of the then-current
rating of the Class A Notes (without giving effect to the Class A Note Insurance
Policy) as determined after any adjustment or withdrawal of the ratings
following notice of such breach) waive a breach of any of the Perfection
Representations, Warranties or Covenants.

                                      A-2<PAGE>
                                                                EXHIBIT 4(f)(52)

                      AMENDED AND RESTATED TRUST AGREEMENT

                                     between

                      CREDIT ACCEPTANCE FUNDING LLC 2003-1
                                     Seller

                                       and

                 WACHOVIA BANK OF DELAWARE, NATIONAL ASSOCIATION
                                  Owner Trustee

                            Dated as of June 27, 2003

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                                Page
                                                                                                                                ----
<S>                                                                                                                             <C>
ARTICLE I           Definitions...............................................................................................    1

    SECTION 1.1.          Capitalized Terms...................................................................................    1
    SECTION 1.2.          Other Definitional Provisions.......................................................................    3

ARTICLE II          Organization..............................................................................................    4

    SECTION 2.1.          Declaration of Trust; Name..........................................................................    4
    SECTION 2.2.          Office..............................................................................................    4
    SECTION 2.3.          Purposes and Powers.................................................................................    4
    SECTION 2.4.          Appointment of Owner Trustee........................................................................    5
    SECTION 2.5.          Capital Contribution of Trust Estate................................................................    5
    SECTION 2.6.          Status of Trust Under Statutory Trust Act; Certain Income Tax Matters...............................    5
    SECTION 2.7.          Liability of Seller.................................................................................    6
    SECTION 2.8.          Appointment of Trust Collateral Agent; Title to Trust Property......................................    6
    SECTION 2.9.          Situs of Trust......................................................................................    7
    SECTION 2.10.         Representations and Warranties of the Seller........................................................    7
    SECTION 2.11.         Federal Income Tax Treatment of the Trust...........................................................    8
    SECTION 2.12.         Covenants of the Seller.............................................................................    9
    SECTION 2.13.         Covenants of the Certificateholders.................................................................   12

ARTICLE III         Certificates and Transfer of Interests....................................................................   13

    SECTION 3.1.          Initial Ownership...................................................................................   13
    SECTION 3.2.          The Certificates....................................................................................   13
    SECTION 3.3.          Authentication of Certificates......................................................................   13
    SECTION 3.4.          Registration of Transfer and Exchange of Certificates...............................................   13
    SECTION 3.5.          Mutilated, Destroyed, Lost or Stolen Certificates...................................................   15
    SECTION 3.6.          Persons Deemed Certificateholders...................................................................   15
    SECTION 3.7.          Access to List of Certificateholders' Names and Addresses...........................................   15
    SECTION 3.8.          Distributions.......................................................................................   16
    SECTION 3.9.          ERISA Restrictions..................................................................................   16

ARTICLE IV          Voting Rights and Other Actions...........................................................................   16

    SECTION 4.1.          Prior Notice to Holders with Respect to Certain Matters.............................................   16
    SECTION 4.2.          Action by Certificateholders with Respect to Certain Matters........................................   19
    SECTION 4.3.          Action by Certificateholders with Respect to Bankruptcy.............................................   19
    SECTION 4.4.          Restrictions on Certificateholders' Power...........................................................   19
    SECTION 4.5.          Majority Control....................................................................................   20
    SECTION 4.6.          Rights of the Class A Insurer.......................................................................   20

ARTICLE V           Certain Duties............................................................................................   21

    SECTION 5.1.          Accounting and Records to the Certificateholders, the Internal Revenue Service and Others...........   21
    SECTION 5.2.          Signature on Returns; Tax Matters Partner...........................................................   21
</TABLE>

                                       i

<PAGE>

<TABLE>
<S>                                                                                                                              <C>
ARTICLE VI          Authority and Duties of Owner Trustee......................................................................  21

    SECTION 6.1.          General Authority....................................................................................  21
    SECTION 6.2.          General Duties.......................................................................................  22
    SECTION 6.3.          Action upon Instruction..............................................................................  22
    SECTION 6.4.          No Duties Except as Specified in this Agreement or in Instructions...................................  23
    SECTION 6.5.          No Action Except under Specified Documents or Instructions...........................................  23
    SECTION 6.6.          Restrictions.........................................................................................  24

ARTICLE VII         Concerning the Owner Trustee...............................................................................  24

    SECTION 7.1.          Acceptance of Trusts and Duties......................................................................  24
    SECTION 7.2.          Furnishing of Documents..............................................................................  25
    SECTION 7.3.          Representations and Warranties.......................................................................  25
    SECTION 7.4.          Reliance; Advice of Counsel..........................................................................  26
    SECTION 7.5.          Not Acting in Individual Capacity....................................................................  27
    SECTION 7.6.          Owner Trustee Not Liable for Certificates or Contracts...............................................  27
    SECTION 7.7.          Owner Trustee May Own Certificates and Notes.........................................................  27
    SECTION 7.8.          Payments from Trust Property.........................................................................  27
    SECTION 7.9.          Doing Business in Other Jurisdictions................................................................  28

ARTICLE VIII        Compensation of Owner Trustee..............................................................................  28

    SECTION 8.1.          Owner Trustee's Fees and Expenses....................................................................  28
    SECTION 8.2.          Indemnification......................................................................................  28
    SECTION 8.3.          Payments to the Owner Trustee........................................................................  29
    SECTION 8.4.          Non-Recourse Obligations.............................................................................  29

ARTICLE IX          Termination of Trust Agreement.............................................................................  29

    SECTION 9.1.          Termination of Trust Agreement.......................................................................  29

ARTICLE X           Successor Owner Trustees and Additional Owner Trustees.....................................................  31

    SECTION 10.1.         Eligibility Requirements for Owner Trustee...........................................................  31
    SECTION 10.2.         Resignation or Removal of Owner Trustee..............................................................  31
    SECTION 10.3.         Successor Owner Trustee..............................................................................  32
    SECTION 10.4.         Merger or Consolidation of Owner Trustee.............................................................  33
    SECTION 10.5.         Appointment of Co-Trustee or Separate Trustee........................................................  33

ARTICLE XI          Miscellaneous..............................................................................................  34

    SECTION 11.1.         Supplements and Amendments...........................................................................  34
    SECTION 11.2.         Limitations on Rights of Others......................................................................  35
    SECTION 11.3.         Notices..............................................................................................  35
    SECTION 11.4.         Severability.........................................................................................  36
    SECTION 11.5.         Separate Counterparts................................................................................  36
    SECTION 11.6.         Assignments; Class A Insurer.........................................................................  36
    SECTION 11.7.         No Petition..........................................................................................  36
    SECTION 11.8.         No Recourse..........................................................................................  37
    SECTION 11.9.         Headings.............................................................................................  37
    SECTION 11.10.        GOVERNING LAW........................................................................................  37
    SECTION 11.11.        Servicer.............................................................................................  37
</TABLE>

                                       ii

<PAGE>

<TABLE>
    <S>                                                                                                                          <C>
    SECTION 11.12.        Class A Insurer Control Rights.......................................................................  37
</TABLE>

EXHIBITS

EXHIBIT A   FORM OF CERTIFICATE

EXHIBIT B   FORM OF CERTIFICATE OF TRUST

                                      iii

<PAGE>

         This AMENDED AND RESTATED TRUST AGREEMENT dated as of June 27, 2003
between CREDIT ACCEPTANCE FUNDING LLC 2003-1, a Delaware limited liability
company (the "Seller"), and WACHOVIA BANK OF DELAWARE, NATIONAL ASSOCIATION, a
national banking association, as Owner Trustee (solely in such capacity and not
in its individual capacity, the "Owner Trustee").

                              PRELIMINARY STATEMENT

         The Owner Trustee has executed and caused to be filed with the Delaware
Secretary of State the Certificate of Trust relating to the Trust, on June 9,
2003. The Owner Trustee and the Seller heretofore entered into an Interim Trust
Agreement dated June 9, 2003 relating to the Trust and desire to enter into this
Amended and Restated Trust Agreement in order to amend and restate such Interim
Trust Agreement.

                                   ARTICLE I

                                   Definitions

     SECTION 1.1.     Capitalized Terms.

         For all purposes of this Agreement, the following terms shall have the
meanings set forth below:

         "Agreement" shall mean this Amended and Restated Trust Agreement, as
the same may be amended and supplemented from time to time.

         "Basic Documents" has the meaning set forth in the Sale and Servicing
Agreement.

         "Backup Servicer" shall mean Systems & Services Technologies, Inc.

         "Benefit Plan" shall have the meaning assigned to such term in Section
3.9.

         "Certificate" means a Trust Certificate.

         "Certificate Distribution Account" shall mean the account designated as
such as established and maintained pursuant to the Sale and Servicing Agreement.

         "Certificate of Trust" shall mean the certificate of trust for the
Trust filed on June 9, 2003, as amended and /or restated from time to time, a
copy of which is attached hereto as Exhibit B.

         "Certificate Register" and "Certificate Registrar" shall mean the
register mentioned and the registrar appointed pursuant to Section 3.4.

         "Class A Insurer" shall mean Radian Asset Assurance Inc., or its
successor in interest.

<PAGE>

         "Class A Termination Date" shall mean the date on which all amounts
owing to the Class A Noteholders and, as certified in writing by the Class A
Insurer to the Owner Trustee, all amounts owing to the Class A Insurer under the
Basic Documents shall be paid in full.

         "Code" shall mean the Internal Revenue Code of 1986, as amended from
time to time, and Treasury Regulations promulgated thereunder.

         "Corporate Trust Office" shall mean, with respect to the Owner Trustee,
the principal corporate trust office of the Owner Trustee located at One Rodney
Square, 920 No. King Street, 1st Floor, Wilmington, Delaware 19801 or at such
other address as the Owner Trustee may designate by notice to the
Certificateholders, the Class A Insurer and the Seller, or the principal
corporate trust office of any successor Owner Trustee (the address of which the
successor owner trustee will notify the Certificateholders, the Class A Insurer,
and the Seller).

         "Credit Acceptance" means Credit Acceptance Corporation, a Michigan
corporation.

         "ERISA" shall have the meaning assigned to such term in Section 3.9.

         "Expenses" shall have the meaning assigned to such term in Section 8.2.

         "Holder" or "Certificateholder" shall mean the Person in whose name a
Certificate is registered on the Certificate Register.

         "Indemnified Parties" shall have the meaning assigned to such term in
Section 8.2.

         "Indenture" shall mean the Indenture dated as of June 27, 2003, between
Credit Acceptance Auto Dealer Loan Trust 2003-1 (the "Issuer") and JPMorgan
Chase Bank, as the Indenture Trustee, as the same may be amended and
supplemented from time to time in accordance with the provisions thereof.

         "Majority Certificateholders" shall have the meaning specified in
Section 4.5 hereof.

         "Owner Trustee" shall mean Wachovia Bank of Delaware, National
Association, a national banking association, not in its individual capacity but
solely as owner trustee under this Agreement, and any successor Owner Trustee
hereunder.

         "Percentage Interest" means, with respect to any Certificates, the
undivided percentage ownership of the Certificates evidenced by such
Certificate, as set forth in such Certificate.

         "Record Date" means, with respect to a Distribution Date, the last day
of the calendar month preceding such Distribution Date; provided that the Record
Date with respect to the First Distribution Date shall be the Closing Date.

                                       2

<PAGE>

         "Sale and Servicing Agreement" shall mean the Sale and Servicing
Agreement among the Trust, the Seller, the Servicer, the Trust Collateral Agent
and Backup Servicer, dated as of June 27, 2003, as the same may be amended and
supplemented from time to time.

         "Secretary of State" shall mean the Secretary of State of the State of
Delaware.

         "Securityholders" shall mean the Certificateholders and the Class A
Noteholders.

         "Seller" shall mean Credit Acceptance Funding LLC 2003-1 in its
capacity as Seller hereunder.

         "Statutory Trust Act" shall mean Chapter 38 of Title 12 of the Delaware
Code, 12 Del. Code Section 3801 et seq. as the same may be amended from time to
time.

         "Treasury Regulations" shall mean regulations, including proposed or
temporary regulations, promulgated under the Code. References herein to specific
provisions of proposed or temporary regulations shall include analogous
provisions of final Treasury Regulations or other successor Treasury
Regulations.

         "Trust" shall mean the trust established by this Agreement.

         "Trust Certificate" means a Certificate evidencing the beneficial
interest of a Certificateholder in the Trust, substantially in the form of
Exhibit A attached hereto.

         "Trust Collateral Agent" shall mean, initially, JPMorgan Chase Bank, in
its capacity as trust collateral agent, including its successors-in-interest,
until and unless a successor Person shall have become the Trust Collateral Agent
pursuant to the Sale and Servicing Agreement, and thereafter "Trust Collateral
Agent" shall mean such successor Person.

         "Trust Property" shall mean all right, title and interest of the Trust
in and to the property and rights assigned to the Trust pursuant to Section 2.01
of the Sale and Servicing Agreement, all of which such property and rights have
been and will be, collaterally assigned to the Indenture Trustee pursuant to the
Granting Clause of the Indenture, all funds on deposit from time to time in the
Trust Accounts and all other property of the Trust from time to time, including
any rights of the Owner Trustee and the Trust pursuant to the Sale and Servicing
Agreement, all of which such property and rights have been and will be, so
collaterally assigned to the Indenture Trustee.

     SECTION 1.2.     Other Definitional Provisions.

                  (a)      Capitalized terms used herein and not otherwise
defined have the meanings assigned to them in the Sale and Servicing Agreement
or, if not defined therein, in the Indenture.

                  (b)      All terms defined in this Agreement shall have the
defined meanings when used in any certificate or other document made or
delivered pursuant hereto unless otherwise defined therein.

                                       3

<PAGE>

                  (c)      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 as in effect on the
date of this Agreement or any such certificate or other document, as applicable.
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.

                  (d)      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; Section and Exhibit
references contained in this Agreement are references to Sections and Exhibits
in or to this Agreement unless otherwise specified; and the term "including"
shall mean "including without limitation."

                  (e)      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.

                                   ARTICLE II

                                  Organization

     SECTION 2.1.     Declaration of Trust; Name.

         There is hereby formed a trust to be known as "Credit Acceptance Auto
Dealer Loan Trust 2003-1", in which name the Owner Trustee may conduct the
business of the Trust, make and execute contracts and other instruments on
behalf of the Trust, and sue and be sued.

     SECTION 2.2.     Office.

         The office of the Trust shall be in care of the Owner Trustee at the
Corporate Trust Office or at such other address as the Owner Trustee may
designate by written notice to the Certificateholders, the Class A Insurer and
the Seller.

     SECTION 2.3.     Purposes and Powers.

                  (a)      The purpose of the Trust is, and the Trust shall have
the power and authority, to engage in the following activities:

                           (i)      to issue the Class A Notes pursuant to the
         Indenture and the Certificates pursuant to this Agreement, and to sell
         the Class A Notes and the Certificates;

                           (ii)     with the proceeds of the sale of the Class A
         Notes and the Certificates, to fund the Reserve Account and to pay the
         organizational, start-up and

                                       4

<PAGE>

         transactional expenses of the Trust and to pay the balance to the
         Seller pursuant to the Sale and Servicing Agreement;

                           (iii)    to assign, grant, transfer, pledge, mortgage
         and convey the Trust Property to the Trust Collateral Agent pursuant to
         the Sale and Servicing Agreement for the benefit of the
         Securityholders, the Class A Insurer and the Seller pursuant to the
         terms of the Sale and Servicing Agreement;

                           (iv)     to enter into, execute and perform its
         obligations under the Basic Documents to which it is a party;

                           (v)      to engage in those activities, including
         entering into agreements, that are necessary, suitable or convenient to
         accomplish the foregoing or are incidental thereto or connected
         therewith;

                           (vi)     subject to compliance with the Basic
         Documents, to engage in such other activities as may be required in
         connection with conservation of the Trust Property and the making of
         distributions to the Certificateholders, the Class A Insurer and the
         Class A Noteholders; and

                           (vii)    at any time to enter into derivatives
         transactions.

         The Trust is hereby authorized to engage in the foregoing activities.
The Trust shall not engage in any activity other than in connection with the
foregoing or other than as required or authorized by the terms of this Agreement
or the Basic Documents.

     SECTION 2.4.     Appointment of Owner Trustee.

         Pursuant to the Interim Trust Agreement, the Seller appointed the Owner
Trustee as trustee of the Trust effective as of the date of the Interim Trust
Agreement, to have all the rights, powers and duties set forth therein. The
Owner Trustee by its execution hereof accepts and confirms such appointment and
shall have all of the rights, powers and duties set forth herein and therein.

     SECTION 2.5.     Capital Contribution of Trust Estate.

         Pursuant to the Interim Trust Agreement, the Seller sold, assigned,
transferred, conveyed and set over to the Owner the sum of $1.00. The Owner
Trustee hereby acknowledges receipt in trust from the Seller, as of the date of
the Interim Trust Agreement, of the foregoing contribution, which shall
constitute the initial Trust Property and shall be deposited with the Trust
Collateral Agent for deposit in the Certificate Distribution Account.

     SECTION 2.6.     Status of Trust Under Statutory Trust Act; Certain Income
Tax Matters.

         The Owner Trustee hereby declares that it will hold the Trust Property
in trust upon and subject to the conditions set forth herein for the use and
benefit of the Securityholders, the Class A Insurer and the Seller, subject to
the obligations of the Trust under Basic Documents.

                                       5

<PAGE>

It is the intention of the parties hereto that the Trust constitute a statutory
trust under the Statutory Trust Act and that this Agreement constitute the
governing instrument of such statutory trust. Should the Certificates be held by
more than one Holder, it is the intention of the parties hereto that, solely for
income and franchise tax purposes, the Trust shall be treated as a partnership
with the owners of the Certificates being partners in such partnership for
federal income tax purposes. The parties agree that, unless otherwise required
by appropriate tax authorities, the Trust and the owners of the Certificates,
provided that there is more than one owner of such Certificates, will file or
cause to be filed annual or other necessary returns, reports and other forms
consistent with the characterization of the Trust as a partnership for such tax
purposes. Effective as of the date hereof, the Owner Trustee shall have all
rights, powers and duties set forth herein and to the extent not inconsistent
herewith, in the Statutory Trust Act with respect to accomplishing the purposes
of the Trust. The Owner Trustee shall file the Certificate of Trust with the
Secretary of State.

     SECTION 2.7.     Liability of Seller.

         The Seller shall pay organizational expenses of the Trust as they may
arise or shall, upon the request of the Owner Trustee and upon receipt of
documentation or invoices therefor, promptly reimburse the Owner Trustee for any
such expenses paid by the Owner Trustee.

     SECTION 2.8.     Appointment of Trust Collateral Agent; Title to Trust
Property.

                  (a)      [Reserved]

                  (b)      The specific rights, duties and obligations of the
Trust Collateral Agent shall be as set forth in the Sale and Servicing
Agreement. Upon the issuance of the Class A Notes and the Certificates, the
Seller shall have only such rights with respect to the Trust Collateral Agent as
shall be specified in the Sale and Servicing Agreement.

                  (c)      Subject to the lien of the Indenture, legal title to
all the Trust Property shall be vested at all times in the Trust as a separate
legal entity except where applicable law in any jurisdiction requires title to
any part of the Trust Property to be vested in a trustee or trustees, a
co-trustee and/or a separate trustee, in which case title shall be deemed to be
vested in the Owner Trustee or a separate trustee, as the case may be. The
Holders shall not have legal title to any part of the Trust Property. The
Holders shall be entitled to receive distributions with respect to their
beneficial ownership interest therein only in accordance with Article V of the
Sale and Servicing Agreement and Article IX hereof. No transfer, by operation of
law or otherwise, of any right, title or interest by any Certificateholder of
its ownership interest in the Trust Property shall operate to terminate this
Agreement or the trusts hereunder or entitle any transferee to an accounting or
to the transfer to it of legal title to any part of the Trust Property.

                  (d)      Pursuant to Section 3803 of the Statutory Trust Act,
the Holders shall be entitled to the same limitation of personal liability
extended to stockholders of private corporations organized under the General
Corporation Law of the State of Delaware.

                                       6

<PAGE>

     SECTION 2.9.     Situs of Trust.

         The Trust will be located and administered in the State of Delaware.
The Trust shall not have any employees; provided, however, that nothing herein
shall restrict or prohibit the Owner Trustee, the Servicer, the Backup Servicer,
or any agent of the Trust from having employees within or without the State of
Delaware. The only office of the Trust will be at the Corporate Trust Office in
Delaware.

     SECTION 2.10.    Representations and Warranties of the Seller.

         The Seller makes the following representations and warranties on which
the Owner Trustee relies in accepting the Trust Property in trust and issuing
the Certificates and on which the Class A Insurer relies in issuing the Class A
Note Insurance Policy.

                  (a)      Organization and Good Standing. The Seller is duly
organized and validly existing as a Delaware limited liability company with
power and authority to own its properties and to conduct its business as such
properties are currently owned and such business is presently conducted and is
proposed to be conducted pursuant to this Agreement and the Basic Documents.

                  (b)      Due Qualification. The Seller is duly qualified to do
business as a limited liability company in good standing, and has obtained all
necessary licenses and approvals, in all jurisdictions in which the ownership or
lease of its property, the conduct of its business and the performance of its
obligations under this Agreement and the Basic Documents requires such
qualification.

                  (c)      Power and Authority. The Seller has the power and
authority to execute and deliver this Agreement and the other Basic Documents to
which it is a party and to carry out their respective terms; the Seller has full
power and authority to sell and assign the property to be sold and assigned to
and deposited with the Trust and the Seller has duly authorized such sale and
assignment and deposit to the Trust by all necessary action; and the execution,
delivery and performance of this Agreement and the other Basic Documents to
which it is a party have been duly authorized by the Seller by all necessary
action.

                  (d)      Enforceability. The Seller has duly executed and
delivered this Agreement and the other Basic Documents to which it is a party
and this Agreement and the other Basic Documents to which it is a party
constitute legal, valid and binding obligations of the Seller, enforceable
against Seller in accordance with their terms, and subject to applicable
bankruptcy, insolvency, moratorium, fraudulent conveyance, reorganization and
similar laws now or hereafter in effect relating to creditors' rights generally
or the rights of creditors of banks the deposit accounts of which are insured by
the Federal Deposit Insurance Corporation and subject to general principles of
equity (whether applied in a proceeding at law or in equity).

                  (e)      No Consent Required. No consent, license, approval or
authorization or registration or declaration with, any Person or with any
governmental authority, bureau or agency is required in connection with the
execution, delivery or performance of this Agreement and the Basic Documents,
except for such as have been obtained, effected or made.

                                       7

<PAGE>

                  (f)      No Violation. The consummation of the transactions
contemplated by this Agreement and the other Basic Documents to which it is a
party and the fulfillment of the terms hereof and thereof do not conflict with,
result in any breach of any of the terms and provisions of, or constitute (with
or without notice or lapse of time) a default under, the certificate of
formation or the limited liability company agreement of the Seller, or any
material indenture, agreement or other instrument to which the Seller is a party
or by which it is bound; nor result in the creation or imposition of any Lien
upon any of its properties pursuant to the terms of any such indenture,
agreement or other instrument (other than pursuant to the Basic Documents); nor
violate any law or any order, rule or regulation applicable to the Seller of any
court or of any federal or state regulatory body, administrative agency or other
governmental instrumentality having jurisdiction over the Seller or its
properties.

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

     SECTION 2.11.    Federal Income Tax Treatment of the Trust.

                  (a)      For so long as the Trust has a single owner for
federal income tax purposes, it will, pursuant to Treasury Regulations
promulgated under Section 7701 of the Code, be disregarded as an entity distinct
from the Certificateholder for all federal income tax purposes. Accordingly, for
federal income tax purposes, the Certificateholder will be treated as (i) owning
all assets owned by the Trust, (ii) having incurred all liabilities incurred by
the Trust, and (iii) all transactions between the Trust and the
Certificateholder will be disregarded.

                  (b)      Neither the Owner Trustee nor any Certificateholder
will, under any circumstances, and at any time, make an election on IRS Form
8832 or otherwise, to classify the Trust as an association taxable as a
corporation for federal, state or any other applicable tax purpose.

                  (c)      In the event that the Trust has two or more equity
owners for federal income tax purposes, the Trust will be treated as a
partnership. At any such time that the Trust has two or more equity owners, this
Agreement may need to be amended, in accordance with Section 11.1 herein, and
appropriate provisions may need to be added so as to provide for treatment of
the Trust as a partnership.

                                       8

<PAGE>

     SECTION 2.12.    Covenants of the Seller.

         The Seller agrees and covenants for the benefit of each Holder, the
Class A Insurer and the Owner Trustee, during the term of this Agreement, and to
the fullest extent permitted by applicable law, that:

                  (a)      it shall not create, incur or suffer to exist any
indebtedness or engage in any business, except, in each case, as permitted by
its certificate of formation and limited liability company agreement and the
Basic Documents;

                  (b)      it shall not, for any reason, institute proceedings
for the Trust to be adjudicated bankrupt or insolvent, or consent to or join in
the institution of bankruptcy or insolvency proceedings against the Trust, or
file a petition seeking or consenting to reorganization or relief under any
applicable federal or state law relating to the bankruptcy of the Trust, or
consent to the appointment of a receiver, liquidator, assignee, trustee,
sequestrator (or other similar official) of the Trust or a substantial part of
the property of the Trust or cause or permit the Trust to make any assignment
for the benefit of creditors, or admit in writing the inability of the Trust to
pay its debts generally as they become due, or declare or effect a moratorium on
the debt of the Trust or take any action in furtherance of any such action;

                  (c)      it shall obtain from each counterparty to each Basic
Document to which it or the Trust is a party and each other agreement entered
into on or after the date hereof to which it or the Trust is a party, an
agreement by each such counterparty that prior to the occurrence of the event
specified in Section 9.1(e) such counterparty shall not institute against, or
join any other Person in instituting against, it or the Trust, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings or other
similar proceedings under the laws of the United States or any state of the
United States;

                  (d)      it shall not, for any reason, withdraw or attempt to
withdraw from this Agreement or any other Basic Document to which it is a party,
dissolve, institute proceedings for it to be adjudicated a bankrupt or
insolvent, or consent to the institution of bankruptcy or insolvency proceedings
against it, or file a petition seeking or consenting to reorganization or relief
under any applicable federal or state law relating to bankruptcy, or consent to
the appointment of a receiver, liquidator, assignee, trustee, sequestrator (or
other similar official) of it or a substantial part of its property, or make any
assignment for the benefit of creditors, or admit in writing its inability to
pay its debts generally as they become due, or declare or effect a moratorium on
its debt or take any action in furtherance of any such action;

                  (e)      the Seller is a limited purpose limited liability
company whose activities are restricted in its certificate of formation and
limited liability company agreement to activities related to purchasing or
otherwise acquiring Dealer Loans and related collateral, and related assets and
rights and conducting any related or incidental business or activities it deems
necessary or appropriate to carry out its primary purpose, including entering
into agreements such as the Basic Documents;

                  (f)      the Seller has not engaged, and does not presently
engage, in any activity other than those activities expressly permitted
hereunder and under the other Basic

                                       9

<PAGE>

Documents, nor has the Seller entered into any agreement other than this Trust
Agreement, the other Basic Documents to which it is a party, and with the prior
written consent of the Class A Noteholders, any other agreement necessary to
carry out more effectively the provisions and purposes hereof or thereof;

                  (g)      (A) the Seller maintains its own deposit account or
accounts, separate from those of any of its Affiliates, with commercial banking
institutions, (B) the funds of the Seller are not and have not been diverted to
any other Person or for other than the corporate use of the Seller, and (C)
except as may be expressly permitted by this Trust Agreement, the funds of the
Seller are not and have not been commingled with those of any of its Affiliates;

                  (h)      to the extent that the Seller contracts or does
business with vendors or service providers where the goods and services provided
are partially for the benefit of any other Person, the costs incurred in so
doing are fairly allocated to or among the Seller and such entities for whose
benefit the goods and services are provided, and each of the Seller and each
such entity bears its fair share of such costs; and, all material transactions
between the Seller and any of its Affiliates shall be only on an arms-length
basis;

                  (i)      the Seller maintains a principal executive and
administrative office through which its business is conducted and a telephone
number and stationery through which all business correspondence and
communication are conducted, in each case separate from those of the Originator
and its Affiliates, or, if it shares office space with the Originator or any of
its Affiliates, it shall allocate fairly and reasonably any overhead and expense
for such shared office space;

                  (j)      the Seller conducts its affairs strictly in
accordance with its certificate of formation and limited liability company
agreement and observes all necessary, appropriate and customary limited
liability company formalities, including (A) holding all regular and special
meetings appropriate to authorize all limited liability company action (which,
in the case of regular meetings, are held at least annually), (B) keeping
separate and accurate minutes of such meetings, (C) passing all resolutions or
consents necessary to authorize actions taken or to be taken, and (D)
maintaining accurate and separate books, records and accounts, including
intercompany transaction accounts;

                  (k)      all decisions with respect to its business and daily
operations are independently made by the Seller (although the officer making any
particular decision may also be an employee, officer or director of an Affiliate
of the Seller) and are not dictated by any Affiliate of the Seller (it being
understood that the Servicer, which is an Affiliate of the Seller, will
undertake and perform all of the operations, functions and obligations of it set
forth herein and it may appoint sub-servicers, which may be Affiliates of the
Seller, to perform certain of such operations, functions and obligations);

                  (l)      the Seller acts solely in its own limited liability
company name and through its own authorized officers and agents, which can also
be officers and agents of an Affiliate;

                                       10

<PAGE>

                  (m)      no Affiliate of the Seller advances funds to the
Seller, other than as is otherwise provided herein or in the other Basic
Documents, and no Affiliate of the Seller otherwise supplies funds to, or
guaranties debts of, the Seller; provided, however, that an Affiliate of the
Seller may provide funds to the Seller in connection with the capitalization of
the Seller;

                  (n)      other than organizational expenses and as expressly
provided herein or in its certificate of formation and limited liability company
agreement, the Seller pays all expenses, indebtedness and other obligations
incurred by it;

                  (o)      the Seller does not guarantee, and is not otherwise
liable, with respect to any obligation of any of its Affiliates;

                  (p)      any financial reports required of the Seller comply
with GAAP and are issued separately from, but may be consolidated with, any
reports prepared for any of its Affiliates;

                  (q)      at all times the Seller is adequately capitalized to
engage in the transactions contemplated in its certificate of formation;

                  (r)      the financial statements and books and records of the
Seller reflect the separate corporate existence of the Seller;

                  (s)      the Seller does not act as agent for any Affiliates
of itself, but instead presents itself to the public as a limited liability
company separate from each such entity and independently engaged in the business
of purchasing and financing Contracts;

                  (t)      the Seller shall at all times have at least two
independent directors (each an "Independent Director). An Independent Directors
shall be any person who (a) is not and has not been (i) a stockholder, officer,
director (except in its capacity as Independent Directors of the Seller),
partner, member or employee of the Seller's ultimate parent or any Subsidiaries
or Affiliates thereof or of a significant customer, creditor, supplier or
independent contractor of the Seller, its ultimate parent or any Subsidiaries or
Affiliates thereof, and is not himself such a significant customer, creditor,
supplier or independent contractor, or (ii) a member of the immediate family of
any person described above, and (b) does not directly or indirectly own any
class of voting securities of the Seller or any of its Subsidiaries or
Affiliates. As used in this covenant of the Seller, the terms "Affiliate" and
"Subsidiary" shall have the meanings ascribed thereto in the limited liability
company agreement of the Seller as of the date of this Agreement;

                  (u)      the certificate of formation or limited liability
company agreement of the Seller require the affirmative vote of the independent
directors before a voluntary petition under Section 301 of the Bankruptcy Code
may be filed by the Seller, and the Seller to maintain correct and complete
books and records of account and minutes of the meetings and other proceedings
of its board of directors; and

                                       11

<PAGE>

                  (v)      the Seller acknowledges that the parties hereto are
entering into this Trust Agreement and the other Basic Documents in reliance
upon the Seller being, on the Closing Date and at all times during the term of
this Trust Agreement, a limited purpose entity.

     SECTION 2.13.    Covenants of the Certificateholders.

         Each Certificateholder by becoming a beneficial owner of the
Certificate agrees:

                  (a)      to be bound by the terms and conditions of the
Certificates of which such Certificateholder is the beneficial owner and of this
Agreement, including any supplements or amendments hereto and to perform the
obligations of a Certificateholder as set forth therein or herein, in all
respects as if it were a signatory hereto. This undertaking is made for the
benefit of the Trust, the Owner Trustee, the Class A Insurer and all other
Certificateholders present and future;

                  (b)      to the appointment of the Seller as such
Certificateholder's agent and attorney-in-fact to sign any federal income tax
information return filed on behalf of the Trust and, if requested by the Trust,
to sign such federal income tax information return in its capacity as holder of
an interest in the Trust;

                  (c)      that all transactions and agreements between the
Trust on the one hand, and any of the Owner Trustee, the Indenture Trustee, the
Trust Collateral Agent, the Seller and any Certificateholder on the other hand,
shall reflect the separate legal existence of each entity and will be formally
documented in writing;

                  (d)      not to take any position in such Certificateholder's
tax returns inconsistent with those taken in any tax returns filed by the Trust;

                  (e)      if such Certificateholder is other than an individual
or other entity holding its Certificate through a broker who reports securities
sales on Form 1099-B, to notify the Owner Trustee in writing of any transfer by
it of a Certificate in a taxable sale or exchange, within 30 days of the date of
the transfer; and

                  (f)      until one year and one day after the completion of
the events specified in Section 9.1(e), not, for any reason, to institute
proceedings for the Trust or the Seller to be adjudicated a bankrupt or
insolvent, or consent to the institution of bankruptcy or insolvency proceedings
against the Trust or the Seller, or file a petition seeking or consenting to
reorganization or relief under any applicable federal or state law relating to
bankruptcy, or consent to the appointment of a receiver, liquidator, assignee,
trustee, sequestrator (or other similar official) of the Trust or the Seller or
a substantial part of its property, or cause or permit the Trust or the Seller
to make any assignment for the benefit of its creditors or to admit in writing
its inability to pay its debts generally as they become due, or declare or
effect a moratorium on its debt or take any action in furtherance of any such
action.

                                       12

<PAGE>

                                  ARTICLE III

                     Certificates and Transfer of Interests

     SECTION 3.1.     Initial Ownership.

         Effective upon the formation of the Trust by the contribution by the
Seller pursuant to Section 2.5, the Seller shall be deemed to have acquired and
to have become the owner of a 100% interest in the Trust and at all times prior
to the issuance of any Certificates pursuant to Section 3.3 shall be the sole
beneficial owner and beneficiary of the Trust.

     SECTION 3.2.     The Certificates.

         The Certificates shall be executed on behalf of the Trust by manual or
facsimile signature of an authorized officer of the Owner Trustee. Certificates
bearing the manual or facsimile signatures of individuals who were, at the time
when such signatures shall have been affixed, authorized to sign on behalf of
the Trust, shall be validly issued and entitled to the benefit of this
Agreement, notwithstanding that such individuals or any of them shall have
ceased to be so authorized prior to the authentication and delivery of such
Certificates or did not hold such offices at the date of authentication and
delivery of such Certificates. A transferee of a Certificate shall become a
Certificateholder, and shall be entitled to the rights and subject to the
obligations of a Certificateholder hereunder, upon due registration of such
Certificate in such transferee's name pursuant to Section 3.4 hereof provided,
that the number of Certificateholders at no time may exceed 95. Notwithstanding
the provisions of Section 3.4 hereof, if the Seller is the Holder of a
Certificate, it shall not pledge, sell, transfer, assign or convey such
Certificate without the consent of the Class A Insurer, until the earlier of:
(i) the Class A Termination Date; and (ii) the date on which Credit Acceptance
is no longer Servicer under the Sale and Servicing Agreement.

     SECTION 3.3.     Authentication of Certificates.

         Concurrently with the initial sale of the Contracts and other Trust
Property to the Trust pursuant to Section 2.01 of the Sale and Servicing
Agreement, the Owner Trustee shall cause one or more Certificates having the
respective Percentage Interests (in the aggregate not to exceed 100%) specified
in writing by the Seller to be authenticated, issued and delivered to or upon
the written order of the Seller, signed by its president or any vice president,
any assistant treasurer or any assistant secretary without further action by the
Seller. No Certificate shall entitle its holder to any benefit under this
Agreement, or shall be valid for any purpose, unless there shall appear on such
Certificate a certificate of authentication substantially in the form set forth
in Exhibit A, executed by the Owner Trustee, by manual signature; such
authentication shall constitute conclusive evidence that such Certificate shall
have been duly authenticated and delivered hereunder. All Certificates shall be
dated the date of their authentication.

     SECTION 3.4.     Registration of Transfer and Exchange of Certificates.

         The Certificate Registrar shall keep or cause to be kept, at the
Corporate Trust Office, a Certificate Register in which, subject to such
reasonable regulations as it may prescribe, the Owner Trustee shall provide for
the registration of Certificates and of transfers and

                                       13

<PAGE>

exchanges of Certificates as herein provided. Wachovia Bank of Delaware,
National Association, shall be the initial Certificate Registrar.

         The Certificate Registrar shall provide the Indenture Trustee, the
Trust Collateral Agent and the Class A Insurer with a list of the names and
addresses of the Certificateholders on the Closing Date, to the extent such
information has been provided to the Certificate Registrar and in the form
provided to the Certificate Registrar on such date. Upon any transfers of
Certificates, the Certificate Registrar shall notify the Indenture Trustee, the
Trust Collateral Agent and the Class A Insurer of the name and address of the
transferee in writing, by facsimile, on the day of such transfer.

         Upon surrender for registration of transfer of any Certificate at the
Corporate Trust Office, the Owner Trustee shall execute, authenticate and
deliver, in the name of the designated transferee or transferees, one or more
new Certificates in authorized denominations of a like class and aggregate face
amount dated the date of authentication by the Owner Trustee or any
authenticating agent. At the option of a Holder, Certificates may be exchanged
for other Certificates of the same class in authorized denominations of a like
aggregate amount upon surrender of the Certificates to be exchanged at the
Corporate Trust Office.

         Every Certificate presented or surrendered for registration of transfer
or exchange shall be accompanied by a written instrument of transfer in form
satisfactory to the Owner Trustee and the Certificate Registrar duly executed by
the Certificateholder or his attorney duly authorized in writing, with such
signature guaranteed by an "eligible guarantor institution" meeting the
requirements of the Certificate Registrar, which requirements include membership
or participation in the Securities Transfer Agent's Medallion Program ("STAMP")
or such other "signature guarantee program" as may be determined by the
Certificate Registrar in addition to, or in substitution for, STAMP. Each
Certificate surrendered for registration of transfer or exchange shall be
canceled and subsequently disposed of by the Owner Trustee in accordance with
its customary practice.

         No service charge shall be made for any registration of transfer or
exchange of Certificates, but the Owner Trustee or the Certificate Registrar may
require payment of a sum sufficient to cover any tax or governmental charge that
may be imposed in connection with any transfer or exchange of Certificates.

         The Certificates have not been registered under the Securities Act or
any state securities law. Subject to the provisions of Section 3.1 hereof, the
Certificate Registrar shall not register the transfer of any Certificate or
unless such resale or transfer is: (i) pursuant to an effective registration
statement under the Securities Act; (ii) to the Seller; or (iii) unless it shall
have received a representation letter or such other representations and an
Opinion of Counsel satisfactory to the Seller or the Owner Trustee and, prior to
the Class A Termination Date, the Class A Insurer, to the effect that such
resale or transfer is made (A) in a transaction exempt from the registration
requirements of the Securities Act and applicable state securities laws, or (B)
to a person who the transferor of the Certificate reasonably believes is a
"qualified institutional buyer" (within the meaning of Rule 144A under the
Securities Act) that is aware that such resale or other transfer is being made
in reliance upon Rule 144A. Until the earlier of (i) such time as the
Certificates shall be registered pursuant to a registration statement filed
under

                                       14

<PAGE>

the Securities Act and (ii) the date three years from the later of the date of
the original authentication and delivery of the Certificates and the date any
Certificate was acquired from the Seller or any affiliate of the Seller, the
Certificates shall bear a legend substantially to the effect set forth in the
preceding two sentences. Neither the Seller, the Servicer, the Trust nor the
Owner Trustee is obligated to register the Certificates under the Securities Act
or to take any other action not otherwise required under this Agreement to
permit the transfer of Certificates without registration.

     SECTION 3.5.     Mutilated, Destroyed, Lost or Stolen Certificates.

         If (a) any mutilated Certificate shall be surrendered to the
Certificate Registrar, or if the Certificate Registrar shall receive evidence to
its satisfaction of the destruction, loss or theft of any Certificate, and (b)
there shall be delivered to the Certificate Registrar, the Class A Insurer and
the Owner Trustee, such security or indemnity as may be required by them to save
each of them harmless, then in the absence of notice that such Certificate shall
have been acquired by a bona fide purchaser, the Owner Trustee on behalf of the
Trust shall execute and the Owner Trustee, in exchange for or in lieu of any
such mutilated, destroyed, lost or stolen Certificate, a new Certificate of like
class, tenor and denomination. In connection with the issuance of any new
Certificate under this Section, the Owner Trustee or the Certificate Registrar
may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection therewith. Any duplicate
Certificate issued pursuant to this Section shall constitute conclusive evidence
of an ownership interest in the Trust, as if originally issued, whether or not
the lost, stolen or destroyed Certificate shall be found at any time.

     SECTION 3.6.     Persons Deemed Certificateholders.

         Every Person by virtue of becoming a Certificateholder in accordance
with this Agreement shall be deemed to be bound by the terms of this Agreement.
Prior to due presentation of a Certificate for registration of transfer, the
Owner Trustee, the Certificate Registrar, the Trust Collateral Agent, the Class
A Insurer and any agent of the Owner Trustee, the Trust Collateral Agent, the
Class A Insurer and the Certificate Registrar, may treat the Person in whose
name any Certificate shall be registered in the Certificate Register as the
owner of such Certificate for the purpose of receiving distributions pursuant to
the Sale and Servicing Agreement and for all other purposes whatsoever, and none
of the Owner Trustee, the Trust Collateral Agent, the Class A Insurer or the
Certificate Registrar nor any agent of the Owner Trustee, the Class A Insurer or
the Certificate Registrar shall be bound by any notice to the contrary.

     SECTION 3.7.     Access to List of Certificateholders' Names and Addresses.

         The Owner Trustee shall cause to be furnished to the Trust Collateral
Agent, the Servicer or the Seller and, prior to the Class A Termination Date,
the Class A Insurer, within 15 days after receipt by the Owner Trustee of a
request therefor from such Person in writing, a list, of the names and addresses
of the Certificateholders as of the most recent Record Date. If three or more
Holders of Certificates or one or more Holders of Certificates evidencing not
less than 25% of the Certificate Interest apply in writing to the Owner Trustee,
and such application states that the applicants desire to communicate with other
Certificateholders with respect to their

                                       15

<PAGE>

rights under this Agreement or under the Certificates and such application is
accompanied by a copy of the communication that such applicants propose to
transmit, then the Owner Trustee shall, within five Business Days after the
receipt of such application, afford such applicants access during normal
business hours to the current list of Certificateholders. Each Holder, by
receiving and holding a Certificate, shall be deemed to have agreed not to hold
any of the Seller, the Servicer, the Class A Insurer, the Trust Collateral Agent
or the Owner Trustee or any agent thereof accountable by reason of the
disclosure of its name and address, regardless of the source from which such
information was derived.

     SECTION 3.8.     Distributions.

         Distributions on the Certificates shall be made in accordance with
Section 5.08(a) and Section 5.10 of the Sale and Servicing Agreement.

     SECTION 3.9.     ERISA Restrictions.

         The Certificates may not be acquired by or transferred to (i) an
employee benefit plan (as defined in Section 3(3) of the Employee Retirement
Income Security Act of 1974, as amended ("ERISA")) that is subject to the
provisions of Title I of ERISA, (ii) a plan described in Section 4975(e)(1) of
the Internal Revenue Code of 1986, as amended, or (iii) any entity whose
underlying assets include plan assets by reason of a plan's investment in the
entity (each, a "Benefit Plan"). In connection with any acquisition or transfer
of a Certificate, the Holder thereof shall be required to represent and warrant
that it is not a Benefit Plan.

                                   ARTICLE IV

                         Voting Rights and Other Actions

     SECTION 4.1.     Prior Notice to Holders with Respect to Certain Matters.

                  (a)      The Owner Trustee shall not take any of the actions
set forth below unless (i) the Owner Trustee shall have notified the
Certificateholders and, prior to the Class A Termination Date, the Class A
Insurer, in writing of the proposed action at least 30 days before the taking of
such action, and (ii) the Class A Insurer prior to the Class A Termination Date,
and thereafter, the Majority Certificateholders, have approved such action in
writing, which approval has been received by the Owner Trustee by the 30th day
after such notice has been given:

                           (i)      the election by the Trust to file an
         amendment to the Certificate of Trust (unless such amendment is
         required to be filed under the Statutory Trust Act);

                           (ii)     the amendment of the Indenture by a
         supplemental indenture in circumstances where the consent of any Class
         A Noteholder is required;

                           (iii)    the amendment of the Indenture by a
         supplemental indenture in circumstances where the consent of any Class
         A Noteholder is not required and such amendment materially adversely
         affects the interest of the Certificateholders;

                                       16

<PAGE>

                           (iv)     except pursuant to Section 11.01 of the Sale
         and Servicing Agreement, the amendment, change or modification of the
         Sale and Servicing Agreement.

                           (v)      except as provided in Article IX hereof,
         dissolve, terminate or liquidate the Trust in whole or in part;

                           (vi)     do any act which would make it impossible to
         carry on the ordinary business of the Trust;

                           (vii)    confess a judgment against the Trust;

                           (viii)   possess Trust assets, or assign the
         Trust's right to property, for other than a Trust purpose;

                           (ix)     cause the Trust to lend any funds
         to any entity;

                           (x)      change the Trust's purpose and
         powers from those set forth in this Agreement;

                           (xi)     cause the Trust to incur, assume or
         guaranty any indebtedness except as set forth in this Agreement;

                           (xii)    the initiation of any material
         claim or litigation by the Trust (except for claims or lawsuits brought
         in connection with the collection of Contracts or Dealer Loans;) or

                           (xiii)   the appointment, pursuant to the
         Indenture of a successor Indenture Trustee or the consent to the
         assignment by the Indenture Trustee, Certificate Registrar or Owner
         Trustee of any of its obligations under the Indenture or any other
         Basic Document.

                  (b)      In addition, the Trust shall not commingle its assets
with those of any other entity. The Trust shall maintain its financial and
accounting books and records separate from those of any other entity. Except as
expressly set forth herein or in any other Basic Document, the Trust shall pay
its indebtedness and expenses from its own funds and shall not pay the
indebtedness or operating expenses of any other entity. The Trust shall maintain
appropriate minutes or other records of all appropriate actions and shall
maintain its office separate from the offices of the Seller and its affiliates

                  (c)      The Trust and each Certificateholder shall comply
with the following covenants:

                           (i)      Neither the Owner Trustee nor any
         Certificateholder shall cause the funds and other assets of the Trust
         to be commingled with those of any other individual, corporation,
         estate partnership, joint venture, association, joint stock company,
         trust, unincorporated organization, government or agency or political
         subdivision thereof or any other entity.

                                       17

<PAGE>

                           (ii)     Neither the Owner Trustee nor any
         Certificateholder shall cause the Trust to be, become or hold itself
         out as being liable for the debts of any other party, and neither the
         Trust nor any Certificateholder shall act as agents for each other. The
         Trust shall not guarantee the indebtedness of or make loans to any
         other party or any Certificateholder. No Certificateholder may
         guarantee the indebtedness of or make loans to the Trust or hold itself
         out as being liable for the debts of the Trust.

                           (iii)    Neither the Owner Trustee nor any
         Certificateholder shall cause the Trust (A) to act other than solely in
         its Trust name and through its duly authorized officers or agents in
         the conduct of its business, (B) to prepare all Trust correspondence
         otherwise than in the Trust name, (C) to conduct its business other
         than so as not to mislead others as to the identity of the entity with
         which they are conducting business; and no Certificateholder will be
         involved in the day-to-day management of the Trust.

                           (iv)     The Owner Trustee shall maintain on behalf
         of the Trust all statutory trust records and books of account of the
         Trust and neither the Owner Trustee nor any Certificateholder shall
         cause the Trust to commingle its statutory trust records and books of
         account with the corporate records and books of account maintained by
         any Certificateholder or the Owner Trustee on behalf of the Trust shall
         reflect the separate existence of the Trust. The books of the Trust may
         be kept (subject to any provision contained in any applicable statutes)
         inside or outside the State of Delaware at such place or places as may
         be designated from time to time by the Owner Trustee with notice to the
         Class A Insurer.

                           (v)      The Trust shall take such formalities as may
         be necessary to authorize all of its actions as may be required by law.

                           (vi)     The Owner Trustee shall cause the Trust to
         (1) conduct its business in an office separate from that of each
         Certificateholder, (2) maintain stationery, if any, separate from that
         of each Certificateholder, (3) except as expressly set forth herein, to
         pay its indebtedness, operating expenses, and liabilities from its own
         funds, and not to pay the indebtedness, operating expenses and
         liabilities of any other entity, (4) observe all statutory formalities
         under the Statutory Trust Act, and (5) keep in full effect its
         existence, rights and franchises as a statutory trust under the laws of
         the State of Delaware until dissolved in accordance with the Basic
         Documents.

                  (d)      For accounting purposes, the Trust shall be treated
as an entity separate and distinct from any Certificateholder. The pricing and
other material terms of all transactions and agreements to which the Trust is a
party shall be intrinsically fair to all parties thereto. This Agreement is and
shall be the only agreement among the parties thereto with respect to the
creation, operation and termination of the Trust.

                  (e)      The Owner Trustee shall not have the power, except
upon the direction of the Class A Insurer and the Certificateholders, and to the
extent otherwise consistent with the Basic Documents, to (i) remove or replace
the Servicer, the Backup Servicer or the Indenture Trustee, (ii) institute
proceedings to have the Trust declared or adjudicated a

                                       18

<PAGE>

bankruptcy or insolvent, (iii) consent to the institution of bankruptcy or
insolvency proceedings against the Trust, (iv) file a petition or consent to a
petition seeking reorganization or relief on behalf of the Trust under any
applicable federal or state law relating to bankruptcy, (v) consent to the
appointment of a receiver, liquidator, assignee, trustee, sequestrator (or any
similar official) of the Trust or a substantial portion of the property of the
Trust, (vi) make any assignment for the benefit of the Trust's creditors, (vii)
cause the Trust to admit in writing its inability to pay its debts generally as
they become due, (viii) take any action, or cause the Trust to take any action,
in furtherance of any of the foregoing (any of the above, a "Bankruptcy
Action"). So long as the Indenture and Sale and Servicing Agreement remain in
effect, no Certificateholder shall have the power to take, and shall not take,
any Bankruptcy Action with respect to the Trust or direct the Owner Trustee to
take any Bankruptcy Action with respect to the Trust.

                  (f)      The Owner Trustee shall notify the Seller, the
Servicer, the Class A Insurer and the Certificateholders in writing of any
appointment of a successor Note Registrar, Trust Collateral Agent or Certificate
Registrar within five Business Days of its receipt thereof.

     SECTION 4.2.     Action by Certificateholders with Respect to Certain
Matters.

         The Owner Trustee shall not have the power, except upon the written
direction of the Certificateholders with the prior written consent of the Class
A Insurer or, prior to the Class A Termination Date, the Class A Insurer in
accordance with the Basic Documents, to (a) remove the Servicer under the Sale
and Servicing Agreement or (b) except as expressly provided in the Basic
Documents, sell the Dealer Loans after the termination of the Indenture. The
Owner Trustee shall take the actions referred to in the preceding sentence only
upon written instructions signed by the Certificateholders or the Class A
Insurer, as applicable, and written consent of the Class A Insurer and the
furnishing of indemnification satisfactory to the Owner Trustee by the
Certificateholders.

     SECTION 4.3.     Action by Certificateholders with Respect to Bankruptcy.

         The Owner Trustee shall not have the power to, and shall not, commence
or join in any proceeding or other actions contemplated by Section 2.12(c)
relating to the Trust without the unanimous prior approval of all
Certificateholders and, prior to the Class A Termination Date, the Class A
Insurer, and the delivery to the Owner Trustee by each such Certificateholder of
a certificate certifying that such person reasonably believes that the Trust is
insolvent and, prior to the Class A Termination Date, written consent of the
Class A Insurer.

     SECTION 4.4.     Restrictions on Certificateholders' Power.

                  (a)      The Certificateholders shall not direct the Owner
Trustee to take or refrain from taking any action if such action or inaction
would be contrary to any obligation of the Trust or the Owner Trustee under this
Agreement or any of the Basic Documents or would be contrary to Section 2.3 nor
shall the Owner Trustee follow any such direction, if given.

                  (b)      No Certificateholder shall have any right by virtue
or by availing itself of any provisions of this Agreement to institute any suit,
action, or proceeding in equity or at law upon or under or with respect to this
Agreement or any Basic Document, unless the Certificateholders are the
Instructing Party pursuant to Section 6.3 and unless a Certificateholder

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<PAGE>

previously shall have given to the Owner Trustee a written notice of default and
of the continuance thereof, as provided in this Agreement, and also unless
Certificateholders evidencing not less than 25% of the Certificate Interest
shall have made written request upon the Owner Trustee to institute such action,
suit or proceeding in its own name as Owner Trustee under this Agreement and
shall have offered to the Owner Trustee such reasonable indemnity as it may
require against the costs, expenses and liabilities to be incurred therein or
thereby, and the Owner Trustee, for 30 days after its receipt of such notice,
request, and offer of indemnity, shall have neglected or refused to institute
any such action, suit, or proceeding, and during such 30-day period no request
or waiver inconsistent with such written request has been given to the Owner
Trustee pursuant to and in compliance with this Section or Section 6.3; it being
understood and intended, and being expressly covenanted by each
Certificateholder with every other Certificateholder and the Owner Trustee, that
no one or more Holders of Certificates shall have any right in any manner
whatever by virtue or by availing itself or themselves of any provisions of this
Agreement to affect, disturb, or prejudice the rights of the Holders of any
other of the Certificates, or to obtain or seek to obtain priority over or
preference to any other such Holder, or to enforce any right under this
Agreement, except in the manner provided in this Agreement and for the equal,
ratable, and common benefit of all Certificateholders. For the protection and
enforcement of the provisions of this Section, each and every Certificateholder
and the Owner Trustee shall be entitled to such relief as can be given either at
law or in equity.

     SECTION 4.5.     Majority Control.

         No Certificateholder shall have any right to vote or in any manner
otherwise control the operation and management of the Trust except as expressly
provided in this Agreement. Except as expressly provided herein, any action that
may be taken by the Certificateholders under this Agreement shall be taken by
the Holders of Certificates evidencing not less than 51% of the Certificate
Interest (the "Majority Certificateholders"). Except as expressly provided
herein, any written notice of the Certificateholders delivered pursuant to this
Agreement shall be effective if signed by the Majority Certificateholders at the
time of the delivery of such notice.

     SECTION 4.6.     Rights of the Class A Insurer.

         Notwithstanding anything to the contrary in the Basic Documents,
without the prior written consent of the Class A Insurer, prior to the Class A
Termination Date, neither the Owner Trustee nor any Certificateholder shall (i)
remove the Servicer, (ii) initiate any claim, suit or proceeding by the Trust or
compromise any claim, suit or proceeding brought by or against the Trust, other
than with respect to the enforcement of any Dealer Loan or Contract or any
rights of the Trust thereunder, (iii) authorize the merger or consolidation of
the Trust with or into any other statutory trust or other entity or convey or
transfer all or substantially all of the Trust Property to any other entity,
(iv) amend the Certificate of Trust or (v) amend this Agreement.

                                       20

<PAGE>

                                   ARTICLE V

                                 Certain Duties

     SECTION 5.1.     Accounting and Records to the Certificateholders, the
Internal Revenue Service and Others.

         Subject to the Code and Section 4.01 of the Sale and Servicing
Agreement, the Owner Trustee shall (a) maintain (or cause to be maintained) the
books of the Trust on a calendar year basis on the accrual method of accounting,
(b) deliver (or cause to be delivered) to each Certificateholder, as may be
required by the Code and applicable Treasury Regulations, such information as
may be required (including Schedule K-1) to enable each Certificateholder to
prepare its federal and state income tax returns, and (c) file or cause to be
filed such tax returns relating to the Trust, and make such elections as may
from time to time be required or appropriate under any applicable state or
federal statute or rule or regulation thereunder. The Owner Trustee shall make
all elections pursuant to this Section as directed in writing by the Seller. The
Owner Trustee shall sign all tax information returns filed pursuant to this
Section and any other returns as may be required by law, and in doing so shall
rely entirely upon, and shall have no liability for information provided by, or
calculations provided by, the Seller. The Owner Trustee shall elect under
Section 1278 of the Code to include in income currently any market discount that
accrues with respect to the Dealer Loans. The Owner Trustee shall not make the
election provided under Section 754 of the Code.

     SECTION 5.2.     Signature on Returns; Tax Matters Partner.

                  (a)      Notwithstanding the provisions of Section 5.1, the
Owner Trustee shall sign on behalf of the Trust the tax returns of the Trust, if
any, unless applicable law requires a Certificateholder to sign such documents,
in which case such documents shall be signed by the Seller as "tax matters
partner".

                  (b)      The Certificateholders hereby elect the Seller as the
"tax matters partner" of the Trust pursuant to Section 6231 of the Code and the
Treasury Regulations promulgated thereunder.

                                   ARTICLE VI

                      Authority and Duties of Owner Trustee

     SECTION 6.1.     General Authority.

         The Owner Trustee is authorized and directed to execute and deliver on
behalf of the Trust the Basic Documents to which the Trust is named as a party
and each certificate or other document attached as an exhibit to or contemplated
by the Basic Documents to which the Trust is named as a party and any amendment
thereto, in each case, in such form as the Seller shall approve as evidenced
conclusively by the Owner Trustee's execution thereof, and on behalf of the
Trust, to direct the Indenture Trustee to authenticate and deliver the Class A
Notes in the aggregate principal amount of $100,000,000. In addition to the
foregoing, the Owner Trustee is authorized, but shall not be obligated, to take
all actions required of the Trust pursuant to the

                                       21

<PAGE>

Basic Documents. The Owner Trustee is further authorized from time to time to
take such action as the Instructing Party (as defined below) shall direct in
writing with respect to the Basic Documents so long as such activities are
consistent with the terms of the Basic Documents. The Instructing Party hereby
agrees not to instruct the Owner Trustee to take any action which is
inconsistent with or in violation of the terms of the Basic Documents.

     SECTION 6.2.     General Duties.

         It shall be the duty of the Owner Trustee to: (a) discharge (or cause
to be discharged) all of its responsibilities pursuant to the terms of this
Agreement and to administer the Trust in the interest of the Holders and the
Class A Insurer, subject to the Basic Documents and in accordance with the
provisions of this Agreement. Notwithstanding the foregoing, the Owner Trustee
shall be deemed to have discharged its duties and responsibilities hereunder and
under the Basic Documents (i) to the extent the Servicer has agreed in the Sale
and Servicing Agreement to perform any act or to discharge any duty of the Owner
Trustee or the Trust hereunder or under any Basic Document, and the Owner
Trustee shall not be liable for the default or failure of the Servicer to carry
out its obligations under the Sale and Servicing Agreement and (ii) to the
extent that Owner Trustee has contracted with a third party acceptable to the
Class A Insurer to discharge such duties and responsibilities. The Servicer, the
Backup Servicer, the Trust Collateral Agent and the Seller shall all be deemed
acceptable to the Class A Insurer; and (b) to obtain and preserve the Trust's
qualification to do business in each jurisdiction in which, based upon the
advice of the Seller or the Servicer, such qualification is or shall be
necessary to protect the validity and enforceability of the Basic Documents and
related instruments and agreements, the Class A Notes and the Trust Property.

     SECTION 6.3.     Action upon Instruction.

                  (a)      Subject to Article IV, the Certificateholders holding
not less than 51% of the Certificate Interest, with, prior to the Class A
Termination Date, the consent of the Class A Insurer (the "Instructing Party")
shall have the exclusive right to direct the actions of the Owner Trustee in the
management of the Trust, so long as such instructions are not inconsistent with
the express terms set forth herein or in any Basic Document or with instructions
of the Class A Noteholders acting pursuant to the Basic Documents. The
Instructing Party shall not instruct the Owner Trustee in a manner inconsistent
with this Agreement or the Basic Documents.

                  (b)      The Owner Trustee shall not be required to take any
action hereunder or under any Basic Document if the Owner Trustee shall have
reasonably determined, or shall have been advised by counsel, that such action
is likely to result in liability on the part of the Owner Trustee or is contrary
to the terms hereof or of any Basic Document or is otherwise contrary to law.

                  (c)      Whenever the Owner Trustee is unable to decide
between alternative courses of action permitted or required by the terms of this
Agreement or any Basic Document, the Owner Trustee shall promptly give notice
(in such form as shall be appropriate under the circumstances) to the
Instructing Party requesting instruction as to the course of action to be
adopted, and to the extent the Owner Trustee acts in good faith in accordance
with any written instruction of the Instructing Party received, the Owner
Trustee shall not be liable on

                                       22

<PAGE>

account of such action to any Person. If the Owner Trustee shall not have
received appropriate instruction within ten (10) days of such notice (or within
such shorter period of time as reasonably may be specified in such notice or may
be necessary under the circumstances) it may, but shall be under no duty to,
take or refrain from taking such action, not inconsistent with this Agreement or
the Basic Documents, as it shall deem to be in the best interests of the
Certificateholders and the Class A Insurer, and shall have no liability to any
Person for such action or inaction absent gross negligence or willful
misconduct.

                  (d)      In the event that the Owner Trustee is unsure as to
the application of any provision of this Agreement or any Basic Document or any
such provision is ambiguous as to its application, or is, or appears to be, in
conflict with any other applicable provision, or in the event that this
Agreement permits any determination by the Owner Trustee or is silent or is
incomplete as to the course of action that the Owner Trustee is required to take
with respect to a particular set of facts, the Owner Trustee may give notice (in
such form as shall be appropriate under the circumstances) to the Instructing
Party and, to the extent that the Owner Trustee acts or refrains from acting in
good faith in accordance with any such instruction received, the Owner Trustee
shall not be liable, on account of such action or inaction, to any Person. If
the Owner Trustee shall not have received appropriate instruction within ten
(10) days of such notice (or within such shorter period of time as reasonably
may be specified in such notice or may be necessary under the circumstances) it
may, but shall be under no duty to, take or refrain from taking such action, not
inconsistent with this Agreement or the Basic Documents, as it shall deem to be
in the best interests of the Certificateholders and the Class A Insurer, and
shall have no liability to any Person for such action or inaction, absent gross
negligence or willful misconduct.

     SECTION 6.4.     No Duties Except as Specified in this Agreement or in
Instructions.

         The Owner Trustee shall not have any duty or obligation to manage, make
any payment with respect to, register, record, sell, dispose of, or otherwise
deal with the Trust Property, or to otherwise take or refrain from taking any
action under, or in connection with, any document contemplated hereby to which
the Owner Trustee is a party, except as expressly provided by the terms of this
Agreement or in any document or written instruction received by the Owner
Trustee pursuant to Section 6.3; and no implied duties or obligations shall be
read into this Agreement or any Basic Document against the Owner Trustee. The
Owner Trustee shall have no responsibility for filing any financing or
continuation statement in any public office at any time or to otherwise perfect
or maintain the perfection of any security interest or lien granted to it
hereunder or to prepare or file any filing for the Trust with the Securities and
Exchange Commission or to record this Agreement or any Basic Document. The Owner
Trustee nevertheless agrees that it will, at its own cost and expense, promptly
take all action as may be necessary to discharge any Liens on any part of the
Trust Property that result from actions by, or claims against, the Owner Trustee
(solely in its individual capacity) and that are not related to the ownership or
the administration of the Trust Property.

     SECTION 6.5.     No Action Except under Specified Documents or
Instructions.

         The Owner Trustee shall not manage, control, use, sell, dispose of or
otherwise deal with any part of the Trust Property except (i) in accordance with
the powers granted to and

                                       23

<PAGE>

the authority conferred upon the Owner Trustee pursuant to this Agreement, (ii)
in accordance with the Basic Documents and (iii) in accordance with any document
or instruction delivered to the Owner Trustee pursuant to Section 6.3.

     SECTION 6.6.     Restrictions.

         The Owner Trustee shall not take any action (a) that is inconsistent
with the purposes of the Trust set forth in Section 2.3 or (b) that, to the
actual knowledge of the Owner Trustee, would result in the Trust's becoming
taxable as a corporation for federal income tax purposes. The Certificateholders
shall not direct the Owner Trustee to take action that would violate the
provisions of this Section.

                                  ARTICLE VII

                          Concerning the Owner Trustee

     SECTION 7.1.     Acceptance of Trusts and Duties.

         The Owner Trustee accepts the trusts hereby created and agrees to
perform its duties hereunder with respect to such trusts but only upon the terms
of this Agreement and the Basic Documents. The Owner Trustee also agrees to
disburse all moneys actually received by it constituting part of the Trust
Property upon the terms of the Basic Documents and this Agreement. The Owner
Trustee shall not be answerable or accountable in its individual capacity
hereunder or under any Basic Document under any circumstances, except (i) for
its own willful misconduct, bad faith or gross negligence, (ii) in the case of
the inaccuracy of any representation or warranty contained in Section 7.3
expressly made by the Owner Trustee, (iii) for liabilities arising from the
failure of the Owner Trustee to perform obligations expressly undertaken by it
in the last sentence of Section 6.4 hereof, (iv) for any investments issued by
the Owner Trustee or any branch or affiliate thereof in its commercial capacity
or (v) for taxes, fees or other charges on, based on or measured by, any fees,
commissions or compensation received by the Owner Trustee, and every provision
of this Trust Agreement relating to the conduct or affecting the liability of or
affording protection to the Owner Trustee shall be subject to this Section. In
particular, but not by way of limitation (and subject to the exceptions set
forth in the preceding sentence):

                  (a)      the Owner Trustee shall not be liable for any error
of judgment made by a Responsible Officer of the Owner Trustee or for any
information contained in the Private Placement Memorandum;

                  (b)      the Owner Trustee shall not be liable with respect to
any action taken or omitted to be taken by it in good faith in accordance with
the instructions of the Instructing Party, the Servicer, the Backup Servicer or
any Certificateholder in accordance with the terms of this Agreement and the
Basic Documents;

                  (c)      no provision of this Agreement or any Basic Document
shall require the Owner Trustee to expend or risk funds or otherwise incur any
liability (financial or otherwise) in the performance of any of its rights or
powers hereunder or under any Basic Document if the Owner Trustee shall have
reasonable grounds for believing that repayment of

                                       24

<PAGE>

such funds or adequate indemnity against such risk or liability is not
reasonably assured or provided to it;

                  (d)      under no circumstances shall the Owner Trustee be
liable for indebtedness of the Trust evidenced by or arising under any of the
Basic Documents, including the principal of and interest on the Class A Notes;

                  (e)      the Owner Trustee shall not be responsible for or in
respect of the validity or sufficiency of this Agreement or for the due
execution hereof by the Seller or for the form, character, genuineness,
sufficiency, value or validity of any of the Trust Property or for or in respect
of the validity or sufficiency of the Basic Documents, other than the
certificate of authentication on the Certificates, and the Owner Trustee shall
in no event assume or incur any liability, duty or obligation to the Indenture
Trustee, the Trust Collateral Agent, the Class A Insurer, any Class A Noteholder
or to any Certificateholder, other than as expressly provided for herein and in
the Basic Documents;

                  (f)      the Owner Trustee shall not be liable for the default
or misconduct of the Seller, the Indenture Trustee, the Trust Collateral Agent,
the Class A Insurer, the Servicer or the Backup Servicer under any of the Basic
Documents or otherwise and the Owner Trustee shall have no obligation or
liability to perform the obligations under this Agreement or the Basic Documents
that are required to be performed by the Seller under this Agreement, by the
Indenture Trustee under the Indenture or the Trust Collateral Agent or the
Servicer or the Backup Servicer under the Sale and Servicing Agreement; and

                  (g)      the Owner Trustee shall be under no obligation to
exercise any of the rights or powers vested in it by this Agreement, or to
institute, conduct or defend any litigation under this Agreement or otherwise or
in relation to this Agreement or any Basic Document, at the request, order or
direction of the Instructing Party or any of the Certificateholders, unless such
Instructing Party or Certificateholders have offered to the Owner Trustee
security or indemnity reasonably satisfactory to it against the costs, expenses
and liabilities that may be incurred by the Owner Trustee therein or thereby.
The right of the Owner Trustee to perform any discretionary act enumerated in
this Agreement or in any Basic Document shall not be construed as a duty, and
the Owner Trustee shall not be answerable for other than its gross negligence,
bad faith or willful misconduct in the performance of any such act.

     SECTION 7.2.     Furnishing of Documents.

         The Owner Trustee shall furnish to the Certificateholders, the Class A
Insurer and the Rating Agencies promptly upon receipt of a written request
therefor, duplicates or copies of all reports, notices, requests, demands,
certificates, financial statements and any other instruments furnished to the
Owner Trustee under the Basic Documents.

     SECTION 7.3.     Representations and Warranties.

         The Owner Trustee hereby represents and warrants to the Seller, the
Class A Insurer (which has relied on such representations and warranties in
issuing the Class A Note Policy) and the Securityholders, that:

                                       25

<PAGE>

                  (a)      It is a national banking association, duly organized
and validly existing in good standing under the laws of the United States of
America. It has all requisite corporate power and authority to execute, deliver
and perform its obligations under this Agreement.

                  (b)      It has taken all corporate action necessary to
authorize the execution and delivery by it of this Agreement, and this Agreement
will be executed and delivered by one of its officers who is duly authorized to
execute and deliver this Agreement on its behalf.

                  (c)      Neither the execution nor the delivery by it of this
Agreement, nor the consummation by it of the transactions contemplated hereby
nor compliance by it with any of the terms or provisions hereof will contravene
any federal or Delaware state law, governmental rule or regulation governing the
banking or trust powers of the Owner Trustee or any judgment or order binding on
it, or constitute any default under its charter documents or by-laws or any
indenture, mortgage, contract, agreement or instrument to which it is a party or
by which any of its properties may be bound.

     SECTION 7.4.     Reliance; Advice of Counsel.

                  (a)      In the absence of bad faith, willful misconduct or
gross negligence, the Owner Trustee shall incur no liability to anyone in acting
upon any signature, instrument, notice, resolution, request, consent, order,
certificate, report, opinion, bond or other document or paper reasonably
believed by it to be genuine and to be signed by the proper party or parties;
however, the Owner Trustee shall examine the same to determine whether or not
they conform on their face to the Trust Agreement. The Owner Trustee may accept
a certified copy of a resolution of the board of directors of the Seller or
other governing body of any corporate party or other entity as conclusive
evidence that such resolution has been duly adopted by such body and that the
same is in full force and effect. As to any fact or matter the method of the
determination of which is not specifically prescribed herein, the Owner Trustee
may for all purposes hereof rely on a certificate, signed by the president or
any vice president or by the treasurer, secretary or other authorized officers
of the relevant party, as to such fact or matter, and such certificate shall
constitute full protection to the Owner Trustee for any action taken or omitted
to be taken by it in good faith in reliance thereon.

                  (b)      In the exercise or administration of the trusts
hereunder and in the performance of its duties and obligations under this
Agreement or the Basic Documents, the Owner Trustee (i) may act directly or
through its agents or attorneys pursuant to agreements entered into with any of
them, and the Owner Trustee shall not be liable for the conduct or misconduct of
such agents or attorneys if such agents or attorneys shall have been selected by
the Owner Trustee with reasonable care and are acceptable to the Class A Insurer
(provided that any person to whom duties and obligations of the Owner Trustee
are delegated pursuant to and in accordance with the Basic Documents shall be
deemed to be acceptable to the Class A Insurer), and (ii) may consult with
counsel, accountants and other skilled persons acceptable to the Class A Insurer
that are selected with reasonable care and employed by it. The Owner Trustee
shall not be liable for anything done, suffered or omitted in good faith by it
in accordance with the

                                       26

<PAGE>

opinion or advice of any such counsel, accountants or other such persons and
according to such opinion not contrary to this Agreement or any Basic Document.

     SECTION 7.5.     Not Acting in Individual Capacity.

         Except as provided in this Article VII, in accepting the trusts hereby
created, Wachovia Bank of Delaware, National Association acts solely as Owner
Trustee hereunder and not in its individual capacity and all Persons having any
claim against the Owner Trustee by reason of the transactions contemplated by
this Agreement or any Basic Document shall look only to the Trust Property for
payment or satisfaction thereof.

     SECTION 7.6.     Owner Trustee Not Liable for Certificates or Contracts.

         The recitals contained herein and in the Certificates (other than the
signature and countersignature of the Owner Trustee on the Certificates) shall
be taken as the statements of the Seller and the Owner Trustee assumes no
responsibility for the correctness thereof. The Owner Trustee makes no
representations as to the validity or sufficiency of this Agreement, of any
Basic Document or of the Certificates (other than the signature and
countersignature of the Owner Trustee on the Certificates) or the Class A Notes,
or of any Dealer Loan, Contract or related documents. The Owner Trustee shall at
no time have any responsibility or liability for or with respect to the
legality, validity and enforceability of any Dealer Loan or Contract, or the
perfection and priority of any security interest created by any Dealer Loan or
Contract in any Financed Vehicle or the maintenance of any such perfection and
priority, or for or with respect to the sufficiency of the Trust Property or its
ability to generate the payments to be distributed to Certificateholders under
this Agreement or the Class A Noteholders under the Indenture, including,
without limitation: the existence, condition and ownership of any Financed
Vehicle; the existence and enforceability of any insurance thereon; the
existence and contents of any Dealer Loan or Contract on any computer or other
record thereof; the validity of the assignment of any Dealer Loan or Contract to
the Trust or of any intervening assignment; the completeness of any Dealer Loan
or Contract; the performance or enforcement of any Dealer Loan or Contract; the
compliance by the Seller, the Servicer or any other Person with any warranty or
representation made under any Basic Document or in any related document or the
accuracy of any such warranty or representation or any action of the Trust
Collateral Agent or the Servicer, the Backup Servicer or any sub-servicer taken
in the name of the Owner Trustee.

     SECTION 7.7.     Owner Trustee May Own Certificates and Notes.

         The Owner Trustee in its individual or any other capacity may become
the owner or pledgee of Certificates or Class A Notes and may deal with the
Seller, the Trust Collateral Agent and the Servicer in banking transactions with
the same rights as it would have if it were not Owner Trustee.

     SECTION 7.8.     Payments from Trust Property.

         All payments to be made by the Owner Trustee on behalf of the Trust
under this Agreement or any of the Basic Documents to which the Trust or the
Owner Trustee is a party shall be made only from the corpus, income and proceeds
of the Trust Property and only to the extent that the Owner Trustee shall have
received corpus, income or proceeds from the Trust

                                       27

<PAGE>

Property to make such payments in accordance with the terms hereof. Wachovia
Bank of Delaware, National Association, or any successor thereto, in its
individual capacity, shall not be liable for any amounts payable under this
Agreement or any of the Basic Documents to which the Trust or the Owner Trustee
is a party.

     SECTION 7.9.     Doing Business in Other Jurisdictions.

         Notwithstanding anything contained herein to the contrary, neither
Wachovia Bank of Delaware, National Association nor any successor thereto, nor
the Owner Trustee shall be required to take any action in any jurisdiction other
than in the State of Delaware if the taking of such action will, even after the
appointment of a co-trustee or separate trustee in accordance with Section 10.5
hereof, (i) require the consent or approval or authorization or order of or the
giving of notice to, or the registration with or the taking of any other action
in respect of, any state or other governmental authority or agency of any
jurisdiction other than the State of Delaware; (ii) result in any fee, tax or
other governmental charge under the laws of the State of Delaware becoming
payable by Wachovia Bank of Delaware, National Association (or any successor
thereto); or (iii) subject Wachovia Bank of Delaware, National Association (or
any successor thereto) to personal jurisdiction in any jurisdiction other than
the State of Delaware for causes of action arising from acts unrelated to the
consummation of the transactions by Wachovia Bank of Delaware, National
Association (or any successor thereto) or the Owner Trustee, as the case may be,
contemplated hereby.

                                  ARTICLE VIII

                          Compensation of Owner Trustee

     SECTION 8.1.     Owner Trustee's Fees and Expenses.

         The Owner Trustee shall receive as compensation for its services
hereunder such fees as have been separately agreed upon before the date hereof
between Credit Acceptance and the Owner Trustee, and the Owner Trustee shall be
entitled to be reimbursed therefor by the Issuer as set forth in Section 5.08(a)
of the Sale and Servicing Agreement.

     SECTION 8.2.     Indemnification.

         Credit Acceptance shall be liable as primary obligor for, and shall
indemnify Wachovia Bank of Delaware, National Association, individually and as
Owner Trustee and its officers, directors, successors, assigns, agents and
servants (collectively, the "Indemnified Parties") from and against, any and all
liabilities, obligations, losses, damages, taxes, claims, actions and suits, and
any and all reasonable costs, expenses and disbursements (including reasonable
legal fees and expenses) of any kind and nature whatsoever (collectively,
"Expenses") which may at any time be imposed on, incurred by, or asserted
against any Indemnified Party in any way relating to or arising out of this
Agreement, the Basic Documents, the Trust Property, the administration of the
Trust Property or the action or inaction of the Owner Trustee hereunder, within
thirty (30) days of a demand by the Owner Trustee, upon receipt by the Owner
Trustee of an invoice or other demand for payment, except only that Credit
Acceptance shall not be liable for or required to indemnify the Owner Trustee
from and against:

                                       28

<PAGE>

(i) Expenses arising or resulting from the gross negligence, willful misconduct
or bad faith of the Owner Trustee or (ii) any Expenses which would constitute
recourse for uncollectible Dealer Loans. Credit Acceptance shall advance to each
Indemnified Party expenses incurred in defending any claim, demand, action, suit
or proceeding, provided that such Indemnified Party shall be obligated to repay
such amount if a court of competent jurisdiction determines that such
Indemnified Party was not entitled to indemnification hereunder. The indemnities
contained in this Section and the rights of the Owner Trustee under Section 8.1
shall be joint and several with the indemnification obligations of the Trust
pursuant to Section 6.05 of the Sale and Servicing Agreement and shall survive
the resignation or termination of the Owner Trustee or the termination of this
Agreement In any event of any claim, action or proceeding for which indemnity
will be sought pursuant to this Section, the Owner Trustee's choice of legal
counsel shall be subject to the approval of Credit Acceptance which approval
shall not be unreasonably withheld.

     SECTION 8.3.     Payments to the Owner Trustee.

         Any amounts paid to the Owner Trustee pursuant to this Article VIII
shall be deemed not to be a part of the Trust Property immediately after such
payment.

     SECTION 8.4     Non-Recourse Obligations.

         Notwithstanding anything in this Agreement or any Basic Document, the
Owner Trustee agrees that all obligations of the Trust individually or as Owner
Trustee for the Trust shall be recourse to the Trust Property only, shall be
paid in accordance with the priorities set forth in Section 5.08 of the Sale and
Servicing Agreement and specifically shall not be recourse to the assets of any
Holder. Wachovia Bank of Delaware, National Association agrees not to seek
recourse against any Holder with respect to any obligations of the Trust owed to
it.

                                   ARTICLE IX

                         Termination of Trust Agreement

     SECTION 9.1.     Termination of Trust Agreement.

                  (a)      This Agreement shall terminate and the Trust shall
dissolve upon the latest of (i) the maturity, payment in full or other
liquidation of the last Dealer Loan (including the purchase by the Servicer or
the Seller at its option of the corpus of the Trust as described in Section
10.01 of the Sale and Servicing Agreement) and the subsequent distribution of
amounts in respect of such Dealer Loans as provided in the Basic Documents and
the satisfaction and discharge of the Indenture and the termination of the Sale
and Servicing Agreement or (ii) the payment to Certificateholders of all amounts
required to be paid to them pursuant to this Agreement and the payment to each
of the Class A Noteholders and the Class A Insurer of all amounts payable to it
under the Basic Documents; provided, however, that the rights to indemnification
under Section 8.2 and the rights of the Owner Trustee under Section 8.1, and the
terms of Section 11.7 hereof shall survive the termination of the Trust and that
the winding up of the Trust shall be conducted in accordance with Section
3808(e) of the Statutory Trust Act, and the Owner Trustee shall be entitled to
rely without investigation upon the

                                       29

<PAGE>

certificates of: (i) the Indenture Trustee pursuant to Section 4.1 of the
Indenture; (ii) the Servicer pursuant to Section 7.06 of the Sale and Servicing
Agreement; and (iii) the Class A Insurer pursuant to Section 4.03 of the
Insurance Agreement as to the absence of liabilities. The Seller shall promptly
notify the Owner Trustee and the Class A Insurer in writing of any prospective
termination pursuant to this Section 9.1. The bankruptcy, liquidation,
dissolution, death or incapacity of any Certificateholder shall not (x) operate
to terminate this Agreement or the Trust, nor (y) entitle such
Certificateholder's legal representatives or heirs to claim an accounting or to
take any action or proceeding in any court for a partition or winding up of all
or any part of the Trust or Trust Property nor (z) otherwise affect the rights,
obligations and liabilities of the parties hereto.

                  (b)      Except as provided in clause (a), neither the Seller
nor any Certificateholder shall be entitled to revoke or terminate the Trust.

                  (c)      Notice of any termination of the Trust, specifying
the Distribution Date upon which the Certificateholders shall surrender their
Certificates to the Trust Collateral Agent, as paying agent who shall then
surrender such Certificates to the Owner Trustee for cancellation, shall be
given by the Owner Trustee by letter to Certificateholders mailed within five
Business Days of receipt of notice of such termination from the Seller or
Servicer, as the case may be, given pursuant to Section 10.01(b) of the Sale and
Servicing Agreement, stating (i) the Distribution Date upon or with respect to
which final distributions on the Certificates shall be made upon presentation
and surrender of the Certificates at the office of the Trust Collateral Agent
therein designated, (ii) the amount of any such final distribution, and (iii)
that the Record Date otherwise applicable to such Distribution Date is not
applicable, payments being made only upon presentation and surrender of the
Certificates at the office of the Owner Trustee therein specified. The Owner
Trustee shall give such notice to the Certificate Registrar (if other than the
Owner Trustee), the Class A Insurer and the Trust Collateral Agent at the time
such notice is given to Certificateholders. Upon presentation and surrender of
the Certificates to the Owner Trustee, the Trust Collateral Agent shall cause to
be distributed to Certificateholders amounts distributable on such Distribution
Date pursuant to Section 5.08 of the Sale and Servicing Agreement.

         In the event that all of the Certificateholders shall not surrender
their Certificates for cancellation within six months after the date specified
in the above-mentioned written notice, the Owner Trustee shall give a second
written notice to the remaining Certificateholders to surrender their
Certificates for cancellation and receive the final distribution with respect
thereto. If within one year after the second notice all the Certificates shall
not have been surrendered for cancellation, the Owner Trustee may take
appropriate steps, or may appoint an agent to take appropriate steps, to contact
the remaining Certificateholders concerning surrender of their Certificates, and
the cost thereof shall be paid out of the funds and other assets that shall
remain subject to this Agreement. Any funds remaining in the Trust after two
years shall be distributed, subject to applicable escheat laws, by the Owner
Trustee or the Trust Collateral Agent upon the written direction of the Seller
to the Seller and Holders shall look solely to the Seller for payment.

                  (d)      Any funds remaining in the Trust after funds for
final distribution have been distributed or set aside for distribution and
reasonable provision has been made for

                                       30

<PAGE>

known claims and obligations of the Trust shall be distributed by the Owner
Trustee to the Seller.

                  (e)      Upon dissolution and the winding up of the Trust
pursuant to Section 9.1(a), the Owner Trustee shall cause the Certificate of
Trust to be canceled by filing a certificate of cancellation with the Secretary
of State in accordance with the provisions of Section 3810 of the Statutory
Trust Act.

                                   ARTICLE X

             Successor Owner Trustees and Additional Owner Trustees

     SECTION 10.1.    Eligibility Requirements for Owner Trustee.

         The Owner Trustee shall at all times be a corporation or other
institution: (i) satisfying the provisions of Section 3807(a) of the Statutory
Trust Act; (ii) authorized to exercise corporate trust powers; (iii) having a
combined capital and surplus of at least $50,000,000 and subject to supervision
or examination by federal or state authorities; provided however, the net worth
of the parent organization of such corporation shall be included in the
determination of the combined capital and surplus of such corporation; and (iv)
prior to the Class A Termination Date, acceptable to the Class A Insurer in its
sole discretion. If such corporation or other institution shall publish reports
of condition at least annually, pursuant to law or to the requirements of the
aforesaid supervising or examining authority, then for the purpose of this
Section, the combined capital and surplus of such corporation or other
institution shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. In case at any time the
Owner Trustee shall cease to be eligible in accordance with the provisions of
this Section, the Owner Trustee shall resign immediately in the manner and with
the effect specified in Section 10.2.

     SECTION 10.2.    Resignation or Removal of Owner Trustee.

         The Owner Trustee may at any time resign and be discharged from the
trusts hereby created by giving written notice thereof to the Seller, the Class
A Insurer and the Servicer. Upon receiving such notice of resignation, the
Seller shall promptly appoint a successor Owner Trustee acceptable to the Class
A Insurer and satisfying the qualifications of Section 10.1 hereof by written
instrument, in duplicate, one copy of which instrument shall be delivered to the
resigning Owner Trustee and one copy to the successor Owner Trustee; provided
that the Seller shall have received written confirmation from the Rating Agency
that the proposed appointment will not result in an increased capital charge to
the Class A Insurer by the Rating Agency. If no successor Owner Trustee shall
have been so appointed and have accepted appointment within 30 days after the
giving of such notice of resignation, the resigning Owner Trustee or, prior to
the Class A Termination Date, the Class A Insurer may petition any court of
competent jurisdiction for the appointment of a successor Owner Trustee
acceptable to the Class A Insurer and satisfying the qualifications of Section
10.1 hereof.

         If at any time, the Owner Trustee shall cease to be eligible in
accordance with the provisions of Section 10.1 and shall fail to resign after
written request therefor by the Seller with

                                       31

<PAGE>

the prior written consent of the Class A Insurer or if at any time the Owner
Trustee shall be legally unable to act, or shall be adjudged bankrupt or
insolvent, or a receiver of the Owner Trustee or of its property shall be
appointed, or any public officer shall take charge or control of the Owner
Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then, prior to the Class A Termination Date, the
Class A Insurer or the Seller with, prior to the Class A Termination Date, the
consent of the Class A Insurer may remove the Owner Trustee. If the Seller or
the Class A Insurer shall remove the Owner Trustee under the authority of the
immediately preceding sentence, the Seller shall, or the Class A Insurer may,
promptly appoint a successor Owner Trustee acceptable to the Class A Insurer,
and satisfying the qualifications set forth in Section 10.1 hereto by written
instrument, in duplicate, one copy of which instrument shall be delivered to the
outgoing Owner Trustee so removed, one copy to the Class A Insurer, one copy to
the successor Owner Trustee and payment of all fees owed to the outgoing Owner
Trustee; provided, that the Seller shall have received written confirmation from
the Rating Agency that the proposed appointment will not result in an increased
capital charge to the Class A Insurer by the Rating Agency.

         Any resignation or removal of the Owner Trustee and appointment of a
successor Owner Trustee pursuant to any of the provisions of this Section shall
not become effective until acceptance of appointment by the successor Owner
Trustee pursuant to Section 10.3 and payment of all fees and expenses owed to
the outgoing Owner Trustee. The Seller shall provide notice of such resignation
or removal of the Owner Trustee to the Rating Agency and the Trust Collateral
Agent.

     SECTION 10.3.    Successor Owner Trustee.

         Any successor Owner Trustee appointed pursuant to Section 10.2 shall
execute, acknowledge and deliver to the Seller, the Class A Insurer, the
Servicer and to its predecessor Owner Trustee an instrument accepting such
appointment under this Agreement, and thereupon the resignation or removal of
the predecessor Owner Trustee shall become effective and such successor Owner
Trustee, without any further act, deed or conveyance, shall become fully vested
with all the rights, powers, duties and obligations of its predecessor under
this Agreement, with like effect as if originally named as Owner Trustee. The
predecessor Owner Trustee shall upon payment of its fees and expenses deliver to
the successor Owner Trustee all documents and statements and monies held by it
under this Agreement; and the Seller and the predecessor Owner Trustee shall
execute and deliver such instruments and do such other things as may reasonably
be required for fully and certainly vesting and confirming in the successor
Owner Trustee all such rights, powers, duties and obligations.

         No successor Owner Trustee shall accept appointment as provided in this
Section unless at the time of such acceptance such successor Owner Trustee shall
be eligible pursuant to Section 10.1.

         Upon acceptance of appointment by a successor Owner Trustee pursuant to
this Section, the Servicer shall mail notice of the successor of such Owner
Trustee to all Certificateholders, the Indenture Trustee, the Class A Insurer,
the Class A Noteholders and the Rating Agency. If the Servicer shall fail to
mail such notice within 10 days after acceptance of

                                       32

<PAGE>

appointment by the successor Owner Trustee, the successor Owner Trustee shall
cause such notice to be mailed at the expense of the Servicer.

         Any successor Owner Trustee appointed pursuant to this Section 10.3
shall promptly file an amendment to the Certificate of Trust with the Secretary
of State of Delaware, identifying the name and address of such successor Owner
Trustee in the State of Delaware.

     SECTION 10.4.    Merger or Consolidation of Owner Trustee.

         Any corporation into which the Owner Trustee may be merged or converted
or with which it may be consolidated, or any corporation resulting from any
merger, conversion or consolidation to which the Owner Trustee shall be a party,
or any corporation succeeding to all or substantially all of the corporate trust
business of the Owner Trustee, shall be the successor of the Owner Trustee
hereunder, provided such corporation shall be eligible pursuant to Section 10.1,
without the execution or filing of any instrument or any further act on the part
of any of the parties hereto, anything herein to the contrary notwithstanding;
provided further that the Owner Trustee shall mail notice of such merger or
consolidation to the Class A Insurer and the Rating Agency.

     SECTION 10.5.    Appointment of Co-Trustee or Separate Trustee.

         Notwithstanding any other provisions of this Agreement, at any time,
for the purpose of meeting any legal requirements of any jurisdiction in which
any part of the Trust Property or any Financed Vehicle may at the time be
located, the Servicer and the Owner Trustee acting jointly shall have the power
and shall execute and deliver all instruments to appoint one or more Persons
approved by the Owner Trustee and the Class A Insurer to act as co-trustee,
jointly with the Owner Trustee, or separate trustee or separate trustees, of all
or any part of the Trust Property, and to vest in such Person, in such capacity,
such title to the Trust, or any part thereof, and, subject to the other
provisions of this Section, such powers, duties, obligations, rights and trusts
as the Servicer and the Owner Trustee may consider necessary or desirable. If
the Servicer shall not have joined in such appointment within 15 days after the
receipt by it of a request so to do, the Owner Trustee shall, with the consent
of the Class A Insurer, have the power to make such appointment. No co-trustee
or separate trustee under this Agreement shall be required to meet the terms of
eligibility as a successor trustee pursuant to Section 10.1 and no notice of the
appointment of any co-trustee or separate trustee shall be required pursuant to
Section 10.3.

         Each separate trustee and co-trustee shall, to the extent permitted by
law, be appointed and act subject to the following provisions and conditions:

                           (i)      all rights, powers, duties and obligations
     conferred or imposed upon the Owner Trustee shall be conferred upon and
     exercised or performed by the Owner Trustee and such separate trustee or
     co-trustee jointly (it being understood that such separate trustee or
     co-trustee is not authorized to act separately without the Owner Trustee
     joining in such act), except to the extent that under any law of any
     jurisdiction in which any particular act or acts are to be performed, the
     Owner Trustee shall be incompetent or unqualified to perform such act or
     acts, in which event such rights, powers, duties and obligations (including
     the holding of title to the Trust or any portion

                                       33

<PAGE>

     thereof in any such jurisdiction) shall be exercised and performed singly
     by such separate trustee or co-trustee, but solely at the direction of the
     Owner Trustee;

                           (ii)     no trustee under this Agreement shall be
     personally liable by reason of any act or omission of any other trustee
     under this Agreement; and

                           (iii)    the Seller and the Owner Trustee acting
     jointly may at any time accept the resignation of or remove any separate
     trustee or co-trustee.

         Any notice, request or other writing given to the Owner Trustee shall
be deemed to have been given to each of the then separate trustees and
co-trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Agreement and
the conditions of this Article. Each separate trustee and co-trustee, upon its
acceptance of the trusts conferred, shall be vested with the estates or property
specified in its instrument of appointment, either jointly with the Owner
Trustee or separately, as may be provided therein, subject to all the provisions
of this Agreement, specifically including every provision of this Agreement
relating to the conduct of, affecting the liability of, or affording protection
to, the Owner Trustee. Each such instrument shall be filed with the Owner
Trustee and a copy thereof given to the Servicer and a copy to the Class A
Insurer.

         Any separate trustee or co-trustee may at any time appoint the Owner
Trustee, its agent or attorney-in-fact with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name. If any separate trustee or co-trustee
shall die, become incapable of acting, resign or be removed, all of its estates,
properties, rights, remedies and trusts shall vest in and be exercised by the
Owner Trustee, to the extent permitted by law, without the appointment of a new
or successor trustee.

                                   ARTICLE XI

                                  Miscellaneous

     SECTION 11.1.    Supplements and Amendments.

                  (a)      This Agreement may be amended by the Seller and the
Owner Trustee, with (x) prior to the Class A Termination Date, the prior written
consent of the Class A Insurer and (y) prior written notice to the Rating
Agency, without the consent of any of the Class A Noteholders or the
Certificateholders, (i) to cure any ambiguity or defect, (ii) to correct,
supplement or modify any provisions in this Agreement or (iii) to add any other
provisions with respect to matters or questions arising under this Agreement
that shall not be inconsistent with the provisions of this Agreement; provided,
however, that such action shall not, as evidenced by an Opinion of Counsel which
may be based upon a certificate of the Seller, adversely affect in any material
respect the interests of any Class A Noteholder.

                  (b)      This Agreement may also be amended from time to time
by the Seller and the Owner Trustee, with (x) prior written notice to the Rating
Agency and (y) prior to the Class A Termination Date, the written consent of the
Class A Insurer and thereafter, the consent of the Majority Certificateholders
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Agreement other than under

                                       34

<PAGE>

(a) above; provided, however, that, subject to the express rights of the Class A
Insurer under the Basic Documents no such amendment shall (a) increase or reduce
in any manner the amount of, or accelerate or delay the timing of, collections
of payments on Dealer Loans or distributions that shall be required to be made
for the benefit of the Class A Noteholders or (b) reduce the percentage of the
Outstanding Amount of the Class A Notes required to consent to any such
amendment, without the consent of the Holders of all the outstanding Class A
Notes.

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

         It shall not be necessary for the consent of the Class A Noteholders or
the Indenture Trustee pursuant to this Section to approve the particular form of
any proposed amendment or consent, but it shall be sufficient if such consent
shall approve the substance thereof. The manner of obtaining such consents shall
be subject to such reasonable requirements as the Owner Trustee may prescribe.
Promptly after the execution of any amendment to the Certificate of Trust, the
Owner Trustee shall cause the filing of such amendment with the Secretary of
State.

         Prior to the execution of any amendment to this Agreement or the
Certificate of Trust, the Owner Trustee, the Indenture Trustee and the Class A
Insurer shall be entitled to receive and rely upon an Opinion of Counsel stating
that the execution of such amendment is authorized or permitted by this
Agreement, that all conditions precedent to the execution and delivery of such
amendment have been satisfied and that any such amendment would not result in
the Trust becoming taxable as a corporation for federal income tax purposes. The
Owner Trustee may, but shall not be obligated to, enter into any such amendment
which affects the Owner Trustee's own rights, duties or immunities under this
Agreement or otherwise.

     SECTION 11.2.    Limitations on Rights of Others.

         Except for Section 2.7, the provisions of this Agreement are solely for
the benefit of the Owner Trustee, the Seller, the Certificateholders, the
Servicer, the Class A Insurer, the Backup Servicer and, to the extent expressly
provided herein, the Indenture Trustee, the Trust Collateral Agent and the Class
A Noteholders, and nothing in this Agreement, whether express or implied, shall
be construed to give to any other Person any legal or equitable right, remedy or
claim in the Trust Property or under or in respect of this Agreement or any
covenants, conditions or provisions contained herein.

     SECTION 11.3.    Notices.

                  (a)      Unless otherwise expressly specified or permitted by
the terms hereof, all notices shall be in writing and shall be deemed given upon
receipt personally delivered, delivered by overnight courier or mailed first
class mail or certified mail, in each case return receipt requested, and shall
be deemed to have been duly given upon receipt, if to the Owner Trustee,
addressed to the Corporate Trust Office; if to the Seller, addressed to Credit
Acceptance Funding LLC 2003-1: Credit Acceptance Funding LLC 2003-1, Jr., Silver
Triangle Building, 25505 West Twelve Mile Road, Southfield, Michigan,
48034-8339; Attention: James

                                       35

<PAGE>

D. Murray; phone number: (248) 353-2400 (ext. 884); fax number: (248) 827-8542 ;
if to the Class A Insurer, addressed to Radian Asset Assurance Inc., 335 Madison
Avenue, New York, New York 10017-4605, Attention: Chief Risk Officer, Chief
Legal Officer, "Urgent Material Enclosed", or, as to each party, at such other
address as shall be designated by such party in a written notice to each other
party; if to the Indenture Trustee, the Trust Collateral Agent, the Servicer,
the Backup Servicer or the Rating Agency, addressed to each respective entity as
set forth in the notice provisions of the Basic Documents.

                  (b)      Any notice required or permitted to be given to a
Certificateholder shall be given by first-class mail, postage prepaid, at the
address of such Holder as shown in the Certificate Register. Any notice so
mailed within the time prescribed in this Agreement shall be conclusively
presumed to have been duly given, whether or not the Certificateholder receives
such notice.

     SECTION 11.4.    Severability.

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

     SECTION 11.5.    Separate Counterparts.

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

     SECTION 11.6.    Assignments; Class A Insurer.

         This Agreement shall inure to the benefit of and be binding upon the
parties hereto, the Class A Insurer (to the extent set forth herein) and their
respective successors and permitted assigns. Without limiting the generality of
the foregoing, all covenants and agreements in this Agreement which confer
rights upon the Class A Insurer shall be for the benefit of and run directly to
the Class A Insurer, and the Class A Insurer shall be entitled to rely on and
enforce such covenants, subject, however, to the limitations on such rights
provided in this Agreement and the Basic Documents. The Class A Insurer may
disclaim any of its respective rights and powers under this Agreement (but not
its duties and obligations under the Class A Note Insurance Policy), upon
delivery of a written notice to the Owner Trustee.

     SECTION 11.7.    No Petition.

         The Owner Trustee (in its individual capacity and as Owner Trustee), by
entering into this Agreement, each Certificateholder, by accepting a
Certificate, and the Indenture Trustee and each Class A Noteholder by accepting
the benefits of this Agreement, hereby covenants and agrees that they will not
at any time institute against the Seller or the Trust, or join in any
institution against the Seller or the Trust of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other proceedings under
any federal or state bankruptcy

                                       36

<PAGE>

or similar law in connection with any obligations relating to the Certificates,
the Class A Notes, this Agreement or any of the Basic Documents.

     SECTION 11.8.    No Recourse.

         Each Certificateholder, by accepting a Certificate acknowledges that
such Certificateholder's Certificates represent beneficial interests in the
Trust only and do not represent interests in or obligations of the Seller, the
Servicer, the Backup Servicer, the Owner Trustee, the Indenture Trustee, the
Class A Insurer or the Trust Collateral Agent or any Affiliate thereof and no
recourse may be had against such parties or their assets, except as may be
expressly set forth or contemplated in this Agreement, the Certificates or the
Basic Documents.

     SECTION 11.9.    Headings.

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

     SECTION 11.10.   GOVERNING LAW.

         THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

     SECTION 11.11.   Servicer.

         The Servicer is authorized to prepare, or cause to be prepared, execute
and deliver on behalf of the Trust all such documents, reports, filings,
instruments, certificates and opinions as it shall be the duty of the Trust or
Owner Trustee to prepare, file or deliver pursuant to the Basic Documents. Upon
written request, the Owner Trustee shall execute and deliver to the Servicer a
limited power of attorney appointing the Servicer the Trust's agent and
attorney-in-fact to prepare, or cause to be prepared, execute and deliver all
such documents, reports, filings, instruments, certificates and opinions.

     SECTION 11.12.   Class A Insurer Control Rights.

         So long as any Class A Note is outstanding, the Class A Insurer shall
have the power to exercise the voting rights granted to the Class A Noteholders,
except as set forth in Section 11.1 hereof; provided, however, during the
continuance of a Class A Insurer Default, all voting, consent or control rights
of the Class A Insurer shall be suspended. Upon the cure of a Class A Insurer
Default, such voting, consent and control rights shall be reinstated.

                                       37

<PAGE>

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

                                 WACHOVIA BANK OF DELAWARE,
                                 NATIONAL ASSOCIATION, not in its
                                 individual capacity but solely as Owner Trustee

                                 By: /S/ Sterling C. Correia
                                     ------------------------------------------
                                     Name: Sterling C. Correia
                                     Title: Vice President

                                 CREDIT ACCEPTANCE FUNDING LLC
                                 2003-1, as
                                   Seller

                                 By: /S/ Douglas W. Busk
                                     ------------------------------------------
                                     Name: Douglas W. Busk
                                     Title: VP Finance & Treasurer

                        [Trust Agreement Signature Page]

<PAGE>

                                                                       EXHIBIT A

                               FORM OF CERTIFICATE

                   SEE ATTACHED PAGES FOR CERTAIN DEFINITIONS

         THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENTS TO THE CLASS A
NOTES AS DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.

         THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES OR "BLUE SKY"
LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS
CERTIFICATE MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) SO LONG AS
THIS NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT
("RULE 144A"), TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A, PURCHASING FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS
GIVEN THAT RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE
144A, (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR (3) IN RELIANCE ON ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND SUBJECT TO THE RECEIPT BY THE OWNER TRUSTEE OF A
CERTIFICATION OF THE TRANSFEREE AND AN OPINION OF COUNSEL (SATISFACTORY TO THE
INDENTURE TRUSTEE, THE CLASS A INSURER AND THE ISSUER) TO THE EFFECT THAT SUCH
TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE
WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.

         NO RESALE OR OTHER TRANSFER OF THIS CERTIFICATE MAY BE MADE UNLESS THE
CERTIFICATE REGISTRAR SHALL HAVE RECEIVED A REPRESENTATION LETTER IN
SUBSTANTIALLY THE FORM REQUIRED BY THE AGREEMENT REFERRED TO BELOW FROM THE
TRANSFEREE OF THIS CERTIFICATE OR SUCH OTHER REPRESENTATIONS (OR AN OPINION OF
COUNSEL) AS MAY BE APPROVED BY THE SELLER AND THE CLASS A INSURER, TO THE EFFECT
THAT SUCH A TRANSFER MAY BE MADE PURSUANT TO AN EXEMPTION FROM THE SECURITIES
ACT, INCLUDING RULE 144A THEREUNDER, AND APPLICABLE STATE SECURITIES LAWS AND
SUCH TRANSFEREE WILL NOT ACQUIRE THIS CERTIFICATE WITH THE ASSETS OF ANY
"EMPLOYEE BENEFIT PLAN" AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA") (WHICH IS SUBJECT TO TITLE I
OF ERISA) OR ANY "PLAN" AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED (THE "CODE").

<PAGE>

NUMBER                                                  Percentage Interest 100%
R-1

                       SEE REVERSE FOR CERTAIN DEFINITIONS

         AMOUNTS IN RESPECT OF THIS CERTIFICATE ARE DISTRIBUTABLE AS SET FORTH
IN THE TRUST AGREEMENT.

                            ASSET BACKED CERTIFICATE

evidencing a beneficial ownership interest in the property of the Trust, as
defined below, the property of which includes a pool of dealer loans secured by
retail installment sales contracts secured by new or used automobiles, vans or
light duty trucks and sold to the Trust by Credit Acceptance Funding LLC 2003-1.

(THIS CERTIFICATE DOES NOT REPRESENT AN INTEREST IN OR OBLIGATION OF CREDIT
ACCEPTANCE FUNDING LLC 2003-1 OR ANY OF ITS AFFILIATES, EXCEPT TO THE EXTENT
DESCRIBED BELOW.)

         THIS CERTIFIES THAT [_________] is the registered owner of the
Percentage Interest set forth above of the beneficial ownership interest in
certain distributions of Credit Acceptance Auto Dealer Loan Trust 2003-1 (the
"Trust") formed by Credit Acceptance Funding LLC 2003-1, a Delaware special
purpose limited liability company (the "Seller"). The Certificates do not accrue
interest.

                  OWNER TRUSTEE'S CERTIFICATE OF AUTHENTICATION

<PAGE>

         This is one of the Certificates referred to in the within-mentioned
Trust Agreement.

                                 WACHOVIA BANK OF DELAWARE,
                                 NATIONAL ASSOCIATION,
                                 not in its individual capacity but solely as
                                 Owner Trustee

                                 by: __________________________________________
                                     Authenticating Agent

<PAGE>

         The Trust was created pursuant to a Certificate of Trust and an Interim
Trust Agreement dated as of June 9, 2003 (the "Trust Agreement"), between the
Seller and Wachovia Bank of Delaware, National Association, as owner trustee, in
its capacity as trustee, and not in its individual capacity (the "Owner
Trustee"), a summary of certain of the pertinent provisions of which is set
forth below. To the extent not otherwise defined herein, the capitalized terms
used herein have the meanings assigned to them in the Trust Agreement.

         This Certificate is one of the duly authorized Certificates designated
as "Asset Backed Certificates" (herein called the "Certificates"). In addition
to the Certificates, there were also issued, under the Indenture dated as of
June 27, 2003, between the Trust and JPMorgan Chase Bank, as Indenture Trustee,
one class of Notes designated as "2.77% Class A Asset Backed Notes" (the "Class
A Notes" or the "Notes"). This Certificate is issued under and is subject to the
terms, provisions and conditions of the Trust Agreement, to which Trust
Agreement the holder of this Certificate by virtue of the acceptance hereof
assents and by which such holder is bound. The property of the Trust includes a
pool of dealer loans secured by retail installment sale contracts (which are
secured by new and used automobiles, vans or light trucks) (the "Dealer Loans"),
all monies due thereunder after the applicable Cutoff Date, security interests
in the vehicles financed thereby, certain bank accounts and the proceeds
thereof, proceeds from claims on certain insurance policies and certain other
rights under the Trust Agreement and the Sale and Servicing Agreement, all
right, to and interest of the Seller in and to the Contribution Agreement dated
as of June 27, 2003 between the Originator and the Seller and all proceeds of
the foregoing.

         Under the Sale and Servicing Agreement, there will be distributed on
the 15th day of each month or, if such 15th day is not a Business Day, the next
Business Day (the "Distribution Date"), commencing on July 15, 2003, to the
Person in whose name this Certificate is registered at the close of business on
the last day of the month preceding such Distribution Date (the "Record Date")
such Certificateholder's fractional undivided interest in the amount to be
distributed, if any, to Certificateholders on such Distribution Date.

         The holder of this Certificate acknowledges and agrees that its rights
to receive distributions in respect of this Certificate are subordinated to the
rights of the Class A Noteholders as described in the Sale and Servicing
Agreement, the Indenture and the Trust Agreement, as applicable.

         It is the intent of the Seller, the Servicer, and the
Certificateholders that, for purposes of federal income taxes, the Trust will be
treated as a partnership and the Certificateholders will be treated as partners
in that partnership. The Seller and the other Certificateholders by acceptance
of a Certificate, agree to treat, and to take no action inconsistent with the
treatment of, the Certificates for such tax purposes as partnership interests in
the Trust. Each Certificateholder, by its acceptance of a Certificate, covenants
and agrees that such Certificateholder will not at any time institute against
the Trust or the Seller, or join in any institution against the Trust or the
Seller 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 Certificates, the Class A Notes, the Trust Agreement or any of the Basic
Documents.

<PAGE>

         Distributions on this Certificate will be made as provided in the Sale
and Servicing Agreement by the Trust Collateral Agent by wire transfer or check
mailed to the Certificateholder of record in the Certificate Register without
the presentation or surrender of this Certificate or the making of any notation
hereon. Except as otherwise provided in the Trust Agreement and the Sale and
Servicing Agreement and, notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Owner Trustee of the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the Corporate Trust Office.

         Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         Unless the certificate of authentication hereon shall have been
executed by an authorized officer of the Owner Trustee, by manual signature,
this Certificate shall not entitle the holder hereof to any benefit under the
Trust Agreement or the Sale and Servicing Agreement or be valid for any purpose.

         THIS CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

<PAGE>

         IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Trust and not
in its individual capacity, has caused this Certificate to be duly executed.

                                 CREDIT ACCEPTANCE AUTO DEALER LOAN
                                 TRUST 2003-1

                                 By: WACHOVIA BANK OF DELAWARE,
                                     NATIONAL ASSOCIATION, not in its
                                     individual capacity but solely as Owner
                                     Trustee

                                 By: ___________________________________________

<PAGE>

                            (Reverse of Certificate)

         The Certificates do not represent an obligation of, or an interest in,
the Seller, the Servicer, the Backup Servicer, the Owner Trustee or any
Affiliates of any of them and no recourse may be had against such parties or
their assets, except as may be expressly set forth or contemplated herein or in
the Trust Agreement, the Indenture or the Basic Documents. In addition, this
Certificate is not guaranteed by any governmental agency or instrumentality and
is limited in right of payment to certain collections with respect to the Dealer
Loans, all as more specifically set forth herein and in the Sale and Servicing
Agreement. A copy of each of the Sale and Servicing Agreement and the Trust
Agreement may be examined during normal business hours at the principal office
of the Seller, and at such other places, if any, designated by the Seller, by
any Certificateholder upon written request.

         The Trust Agreement permits, with certain exceptions therein provided,
the amendment thereof and the modification of the rights and obligations of the
Seller and the rights of the Certificateholders under the Trust Agreement at any
time by the Seller and the Owner Trustee with, prior to the Class A Termination
Date, the prior written consent of Radian Asset Assurance Inc. (the "Class A
Insurer"), and, in certain circumstances, the consent of the holders of the
Class A Notes evidencing not less than 51% of the then-outstanding Class A Note
Balance. Any such consent shall be conclusive and binding on such holder and on
all future holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange hereof or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Trust Agreement also permits
the amendment thereof, in certain limited circumstances, without the consent of
the holders of any of the Certificates.

         As provided in the Trust Agreement and subject to certain limitations
therein set forth and set forth on the front of this Certificate, the transfer
of this Certificate is registerable in the Certificate Register upon surrender
of this Certificate for registration of transfer at the offices or agencies of
the Certificate Registrar maintained by the Owner Trustee in the Borough of
Manhattan, The City of New York, accompanied by a written instrument of transfer
in form satisfactory to the Owner Trustee and the Certificate Registrar duly
executed by the Holder hereof or such holder's attorney duly authorized in
writing, and thereupon one or more new Certificates in authorized denominations
evidencing the same aggregate interest in the Trust will be issued to the
designated transferee; provided, however, that prior to the Class A Termination
Date, this Certificate is non-transferable without the prior written consent of
the Class A Insurer. The initial Certificate Registrar appointed under the Trust
Agreement is Wachovia Bank of Delaware, National Association.

         The Certificates are issuable only as registered Certificates. As
provided in the Trust Agreement and subject to certain limitations therein set
forth, Certificates are exchangeable for new Certificates in authorized
denominations evidencing the same aggregate denomination, as requested by the
holder surrendering the same. No service charge will be made for any such
registration of transfer or exchange, but the Owner Trustee or the Certificate
Registrar may require payment of a sum sufficient to cover any tax or
governmental charge payable in connection therewith.

<PAGE>

         The Owner Trustee, the Class A Insurer, the Certificate Registrar and
any agent of the Owner Trustee or the Certificate Registrar or the Class A
Insurer may treat the person in whose name this Certificate is registered as the
owner hereof for all purposes, and none of the Owner Trustee, the Certificate
Registrar, the Class A Insurer nor any such agent shall be affected by any
notice to the contrary.

         The obligations and responsibilities created by the Trust Agreement and
the Trust created thereby shall terminate upon the payment to Certificateholders
of all amounts required to be paid to them pursuant to the Trust Agreement and
the Sale and Servicing Agreement, upon the payment to the Class A Insurer of all
amounts required to be paid to the Class A Insurer under the Basic Documents,
and the disposition of all property held as part of the Trust. The Servicer or
the Seller, as the case may be may at its option purchase the corpus of the
Trust at a price specified in the Sale and Servicing Agreement, and such
purchase of the Dealer Loans and other property of the Trust will effect early
retirement of the Certificates; however, such right of purchase is exercisable,
subject to certain restrictions, only as of the last day of any Collection
Period as of which the Class A Note Balance is 15% or less of the initial Class
A Note Balance, including any such purchase on such Purchase Date.

         The Certificates may not be acquired by (a) an employee benefit plan
(as defined in Section 3(3) of ERISA) that is subject to the provisions of Title
I of ERISA, (b) a plan described in Section 4975(e) (1) of the Code or (c) any
entity whose underlying assets include plan assets by reason of a plan's
investment in the entity (each, a "Benefit Plan"). In connection with any
acquisition or transfer of a Certificate, the Holder thereof shall be required
to represent and warrant that it is not a Benefit Plan.

         The recitals contained herein shall be taken as the statements of the
Seller or the Servicer, as the case may be, and the Owner Trustee assumes no
responsibility for the correctness thereof. The Owner Trustee makes no
representations as to the validity or sufficiency of this Certificate or of any
Contracts or related document.

         Unless the certificate of authentication hereon shall have been
executed by an authorized officer of the Owner Trustee, by manual or facsimile
signature, this Certificate shall not entitle the holder hereof to any benefit
under the Trust Agreement or the Sale and Servicing Agreement or be valid for
any purpose.

<PAGE>

                                   ASSIGNMENT

         FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers
unto

PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE

________________________________________________________________________________
(Please print or type name and address, including postal zip code, of assignee)

________________________________________________________________________________
the within Certificate, and all rights thereunder, hereby irrevocably
constituting and appointing

__________________________________ Attorney to transfer said Certificate on the
books of the Certificate Registrar, with full power of substitution in the
premises.
Dated:

                                                 ______________________________*

----------
         * NOTICE: The signature to this assignment must correspond with the
name of the registered owner as it appears on the face of the within Certificate
in every particular, without alteration, enlargement or any change whatsoever.

<PAGE>

                                                                       EXHIBIT B

                                     FORM OF
                             CERTIFICATE OF TRUST OF
                 CREDIT ACCEPTANCE AUTO DEALER LOAN TRUST 2003-1

         This Certificate of Trust of Credit Acceptance Auto Dealer Loan Trust
2003-1 (the "Trust"), dated as of June 9, 2003, is being duly executed and filed
by Wachovia Bank of Delaware, National Association, a national banking
association, as trustee (the "Owner Trustee"), to form a statutory trust under
the Delaware Statutory Trust Act (12 Del. Code, Section 3801 et seq.).

         1.       Name. The name of the statutory trust formed hereby is Credit
Acceptance Auto Dealer Loan Trust 2003-1.

         2.       Delaware Trustee. The name and business address of the Owner
Trustee is:

                  Wachovia Bank of Delaware, National Association
                  One Rodney Square
                  920 King Street, 1st Floor
                  Wilmington, Delaware  19801

         IN WITNESS WHEREOF, the undersigned, being the sole trustee of the
Trust, has executed this Certificate of Trust as of the date first above
written.

                                 WACHOVIA BANK OF DELAWARE,
                                 NATIONAL ASSOCIATION,
                                 not in its individual capacity but solely as
                                 owner trustee of the Trust.

                                 By: __________________________________________
                                     Name:
                                     Title:

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