Document:

<PAGE>

                                                                   Exhibit 10.29

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                              AMENDED AND RESTATED
                         SECURITY AND FUNDING AGREEMENT

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

                    AMERICREDIT MANHATTAN TRUST, as Borrower,

                            THE CHASE MANHATTAN BANK,
                        as Administrative Agent on behalf
                             of the Secured Parties
                         and as Securities Intermediary

                                       and
                                       ---

                 THE SEVERAL SECURED PARTIES AND FUNDING AGENTS
                         PARTY HERETO FROM TIME TO TIME

                           Dated as of March 30, 2001

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<PAGE>

                               TABLE OF CONTENTS

                                    ARTICLE I

                                   DEFINITIONS

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

                                   ARTICLE II

                                 THE COLLATERAL

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

                                   ARTICLE III

                            THE ADMINISTRATIVE AGENT

Section 3.1       Appointment and Powers .....................................6

Section 3.2       Performance of Duties ......................................6

Section 3.3       Limitation on Liability ....................................6

Section 3.4       Indemnification ............................................7

Section 3.5       Compensation and Reimbursement .............................7

Section 3.6       Waiver of Setoffs ..........................................7

Section 3.7       Control by the Required Lending Groups .....................8

Section 3.8       Successor Administrative Agent .............................8

Section 3.9       Notices to Funding Agents ..................................9

                                   ARTICLE IV

                    REPRESENTATIONS, WARRANTIES AND COVENANTS
                                 OF THE BORROWER

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

                                       i
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<TABLE>
<CAPTION>

                                    ARTICLE V

                REQUIRED LENDING GROUPS; INTERCREDITOR PROVISIONS
<C>                <S>                                                                 <C>
Section 5.1       Authority of Required Lending Groups ................................18
Section 5.2       Rights of Secured Parties ...........................................18
Section 5.3       Degree of Care ......................................................18

                                   ARTICLE VI

                          TERMINATION EVENTS; REMEDIES

Section 6.1       Termination Events; Remedies ........................................20
Section 6.2       Restoration of Rights and Remedies ..................................23
Section 6.3       No Remedy Exclusive .................................................23

                                   ARTICLE VII

                                FUNDINGS; THE VFN

Section 7.1       Loans to Borrower; Funding Procedures; the VFN ......................24
Section 7.2       Sharing of Payments, Etc ............................................36
Section 7.3       Right of Setoff .....................................................37
Section 7.4       Interest ............................................................37
Section 7.5       Payments Generally ..................................................38
Section 7.6       Broken Funding ......................................................38
Section 7.7       Conversion and Continuation of Outstanding Advances Made by the
                  APA Banks ...........................................................39
Section 7.8       Illegality ..........................................................40
Section 7.9       Inability to Determine Eurodollar Rate ..............................41
Section 7.10      Fees ................................................................41
                  ARTICLE VIII
                  INDEMNIFICATION
Section 8.1       Indemnity ...........................................................42
Section 8.2       Indemnity for Reserves and Expenses .................................43
Section 8.3       Indemnity for Taxes .................................................46
Section 8.4       Other Costs, Expenses and Related Matters ...........................47
</TABLE>
<PAGE>

                                   ARTICLE IX

                                  MISCELLANEOUS
<TABLE>
<CAPTION>
<C>                <S>                                                      <C>
Section 9.1       Further Assurances .........................................49
Section 9.2       Waiver .....................................................49
Section 9.3       Amendments; Waivers ........................................49
Section 9.4       Severability ...............................................50
Section 9.5       Nonpetition Covenant .......................................50
Section 9.6       Notices ....................................................51
Section 9.7       Term of this Agreement .....................................51
Section 9.8       Assignments; Third-Party Rights ............................51
Section 9.9       Consent of Required Lending Groups .........................51
Section 9.10      Limitation of Liability ....................................52
Section 9.11      Counterparts ...............................................52
Section 9.12      Headings ...................................................52
Section 9.13      No Recourse Against Certain Parties ........................52
Section 9.14      Respective Rights of the Borrower and the Secured Parties in
                  the Collateral .............................................53
Section 9.15      Consents ...................................................53
Section 9.16      Trial by Jury Waived .......................................54
Section 9.17      Liabilities and Rights of Funding Agents ...................54
Section 9.18      CP Lenders Generally .......................................55
Section 9.19      Governing Law ..............................................56
Section 9.20      No Recourse ................................................57
</TABLE>

                                      iii
<PAGE>

                              AMENDED AND RESTATED
                         SECURITY AND FUNDING AGREEMENT

     AMENDED AND RESTATED SECURITY AND FUNDING AGREEMENT, dated as of March 30,
2001 (this "Agreement"), by and among AMERICREDIT MANHATTAN TRUST, a Delaware
            ---------
business trust (the "Borrower"), THE CHASE MANHATTAN BANK, a New York banking
                     --------
corporation, as administrative agent on behalf of the Secured Parties and as
securities intermediary hereunder (together with its successors and assigns in
such capacities, the "Administrative Agent" and the "Securities Intermediary",
                      --------------------           -----------------------
respectively) and THE SEVERAL SECURED PARTIES AND FUNDING AGENTS PARTY HERETO
FROM TIME TO TIME.

                                  WITNESSETH:

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

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

     WHEREAS, the parties hereto have entered into that certain Security and
Funding Agreement, dated as of September 14, 2000 (the "Original Agreement");
                                                        ------------------

     WHEREAS, the parties hereto desire to amend and restate the Original
Agreement on the terms and conditions set forth herein; and

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

<PAGE>

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

                                    ARTICLE I

                                   DEFINITIONS

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

                                   ARTICLE II

                                 THE COLLATERAL

     Section 2.1 Grant of Security Interest by the Borrower.
                 ------------------------------------------
     (a) The Borrower hereby grants to the Administrative Agent, on behalf of
and for the benefit of the Secured Parties to secure the payment and performance
of the respective Secured Obligations, a security interest in all of the
Borrower's right, title and interest, whether now owned or hereafter acquired
and wherever located, in, to and under all accounts, contract rights, general
intangibles, chattel paper, instruments, documents, money, cash, deposit
accounts, certificates of deposit, goods, letters of credit, advices of credit
securities investment property, financial assets, security entitlements or
instruments consisting of, arising from or relating to any of the following
property: (i) the Receivables; (ii) the Other Conveyed Property related thereto;
(iii) the Asset Backed Securities (including in the case of Asset Backed
Securities in certificated form, each certificate evidencing the Asset Backed
Securities); (iv) the rights and benefits of the Borrower under (x) the Sale and
Servicing Agreement, (y) each Receivables Sale Agreement and ABS Sale Agreement
entered into between the relevant Seller and the Borrower pursuant to the Sale
and Servicing Agreement, including, but not limited to, the right to cause the
relevant Seller to repurchase Receivables or Asset Backed Securities, as the
case may be, from the Borrower under certain circumstances, and (z) the ABS
Documents relating to the Asset Backed Securities; (v) all amounts required to
be deposited, or delivered to the Administrative Agent for deposit, from time to
time to the Collection Account; (vi) the Pledged Accounts and all funds on
deposit from time to time in

                                       2
<PAGE>

Pledged Accounts and all property credited thereto, and in all investments and
proceeds thereof (including all income thereon); (vii) all funds on deposit from
time to time in the Lockbox Account and all property credited thereto and all
rights and benefits of the Borrower under the Lockbox Agreement; (viii) all
amounts owing to the Borrower and all other rights of the Borrower under any
Hedge Contract; and (ix) all present and future claims, demands, causes and
choses in action in respect of any or all of the foregoing and all payments on
or under and all proceeds of every kind and nature whatsoever in respect of any
and all of the foregoing, including all proceeds of the conversion, voluntary or
involuntary, into cash or other liquid property, all cash proceeds, accounts,
accounts receivables, notes, drafts, acceptances, chattel paper, checks, deposit
accounts, insurance proceeds, condemnation awards, rights to payment of any and
every kind and other forms of obligations and receivables, investment property,
financial assets, security entitlements or instruments and other property which
at any time constitute all or part of or are included in the proceeds of any of
the foregoing (collectively, the "Collateral").
                                  ----------

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

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

     (c) In order to effect the provisions and purposes of this Agreement,
including for the purpose of perfecting the security interests granted
hereunder, the Borrower represents and warrants that it has, on or prior to or
on the date of this Agreement, executed and filed or caused to be filed
appropriate UCC-1 financing statements in Delaware and has taken all other
action necessary to ensure that the Administrative Agent, as agent for the
Secured Parties, has a first priority perfected security interest in all of the
Collateral that can be perfected by the filing of a financing statement.
Furthermore, on and as of each Receivables Sale Date, the Borrower hereby
represents and warrants that the Borrower and the relevant Seller have taken all
other steps necessary under all applicable law in order to cause to exist in
favor of the Administrative Agent, on behalf of the Secured Parties, a valid,
subsisting and enforceable first priority perfected security interest in the
Borrower's first priority perfected security interest in each Asset Backed
Security and in the Financed Vehicle securing each Receivable pledged hereunder
on such date (and the proceeds of such Financed Vehicle) (provided, however,
                                                          --------  -------
that, prior to (X) the occurrence of a Servicer Termination Event, a Potential
Servicer Termination Event, a Termination Event or a Potential Termination Event
and the request by the Admin-

                                       3
<PAGE>

istrative Agent or, (Y) at any time, the request by the Required Lending Groups,
for the recordation of the Borrower's and/or the Administrative Agent's lien on
such Financed Vehicle's certificate of title, no such recordation shall be
required), and such security interest is and shall be prior to all other liens
upon and security interests in such Financed Vehicle that now exist or may
hereafter arise or be created.

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

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

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

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

                                       4
<PAGE>

and/or cause or permit the Servicer to take such actions, as are necessary and
appropriate to release the lien of this Agreement and release and deliver to the
Borrower the Collateral.

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

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

                                       5
<PAGE>

                                   ARTICLE III

                            THE ADMINISTRATIVE AGENT

     Section 3.1 Appointment and Powers. The Secured Parties hereby appoint The
                 ----------------------
Chase Manhattan Bank as the Administrative Agent, and The Chase Manhattan Bank
has accepted such appointment and has agreed to act as Administrative Agent with
respect to the Collateral for the Secured Parties and to perform the other
duties of the Administrative Agent in accordance with the provisions of this
Agreement and the other Basic Agreements.

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

     Section 3.3 Limitation on Liability. Neither the Administrative Agent nor
                 -----------------------
any of its directors, officers or employees, shall be liable for any action
taken or omitted to be taken by it or them hereunder, or in connection herewith,
except that the Administrative Agent shall be liable for its gross negligence,
bad faith or willful misconduct; nor shall the Administrative Agent be
responsible for the validity, effectiveness, value, sufficiency or
enforceability against any Seller, the Servicer or the Borrower of this
Agreement or any of the Collateral (or any part thereof). Notwithstanding any
term or provision of this Agreement, the Administrative Agent shall incur no
liability to any Seller, the Servicer, the Borrower, the Funding Agents or the
Secured Parties for any action taken or omitted by the Administrative Agent in
connection with the Collateral, except for the gross negligence, bad faith or
willful misconduct on the part of the Administrative Agent, and shall incur no
liability to any Seller, the Servicer, the Borrower, the Funding Agents or the
Secured Parties except for gross negligence, bad faith or willful misconduct in
carrying out its duties. Subject to Section 3.4, the Administrative Agent shall
be protected and shall incur no liability to any such party in relying upon the
genuineness of any notice, demand, certificate, signature, instrument or other
document reasonably believed by the Administrative Agent to be genuine and to
have been duly executed by the appropriate signatory, and (absent actual
knowledge to the contrary) the Administrative Agent shall not be required to
make any independent investigation with respect thereto. The Administrative
Agent shall at all times be free

                                       6
<PAGE>

independently to establish to its reasonable satisfaction, but shall have no
duty to independently verify, the existence or nonexistence of facts that are a
condition to the exercise or enforcement of any right or remedy hereunder or
under any of the other Basic Agreements. The Administrative Agent may consult
with counsel, and shall not be liable for any action taken or omitted to be
taken by it hereunder in good faith and in accordance with the advice of such
counsel The Administrative Agent shall not be under any obligation to exercise
any of the remedial rights or powers vested in it by this Agreement or to follow
any direction from the Required Lending Groups or any Secured Party, unless it
shall have received reasonable security or indemnity satisfactory to the
Administrative Agent against the costs, expenses and liabilities which might be
incurred by it.

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

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

     Section 3.6 Waiver of Setoffs. The Administrative Agent hereby expressly
                 -----------------
waives any and all rights of setoff that the Administrative Agent may otherwise
at any time have under applicable law with respect to any Pledged Account

                                       7
<PAGE>

and agrees that amounts in the Pledged Accounts shall at all times be held and
applied solely in accordance with the provisions hereof and of the other Basic
Agreements.

     Section 3.7 Control by the Required Lending Groups. To the extent the
                 --------------------------------------
Administrative Agent is entitled to consent to or withhold its consent to any
waiver or amendment of this Agreement or the other Basic Agreements in
accordance with the terms hereof or thereof or otherwise take or omit to take
action upon the occurrence of a Servicer Termination Event, a Potential Servicer
Termination Event, Termination Event or Potential Termination Event, the
Administrative Agent shall (a) give prompt notice to the Funding Agents of any
such waiver, amendment, Servicer Termination Event, Potential Servicer
Termination Event, Termination Event or Potential Termination Event of which it
is aware and (b) take such action with respect to such waiver, amendment,
Servicer Termination Event, Potential Servicer Termination Event, Termination
Event or Potential Termination Event as shall be directed by the Funding Agents
of all Lending Groups (unless the direction of the Required Lending Groups is
expressly required with respect to a particular provision).

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

                                       8
<PAGE>

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

     Section 3.9 Notices to Funding Agents. The Administrative Agent shall
                 -------------------------
promptly (and in any case no later than five (5) Business Days from receipt)
forward to the Funding Agents copies of any report, certificate or other
document delivered by the Borrower, the Servicer or any Seller to the
Administrative Agent under the Basic Agreements.

                                   ARTICLE IV

                    REPRESENTATIONS, WARRANTIES AND COVENANTS
                                 OF THE BORROWER

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

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

     (b) Due Qualification: Power and Authority: No Violation. The Borrower is
         ----------------------------------------------------
duly qualified to do business as a foreign entity in good standing, and has
obtained all necessary licenses and approvals, in all jurisdictions in which the
ownership or lease of its property or the conduct of its business requires such
qualification. The Borrower has the power and authority to execute and deliver
this Agreement and the other Basic Agreements to which it is a party and to
carry out its terms and their terms, respectively; the Borrower has full power
and authority to grant to the Administrative Agent, for the benefit of the
Secured Parties, a perfected first priority security interest in the Collateral
and has duly authorized such grant by

                                       9
<PAGE>

all necessary trust action; and the execution, delivery and performance of this
Agreement and the other Basic Agreements to which it is a party have been duly
authorized by the Borrower by all necessary corporate action. The Trustee is
duly authorized to execute for and on behalf of the Borrower this Agreement and
the other Basic Agreements to which the Borrower is a party. The execution,
delivery and performance by the Borrower of this Agreement and the other Basic
Agreements to which it is a party require no action by or in respect of, or
filing with, any governmental body, agency or official, and do not contravene,
or constitute a default under, any provision of applicable law or regulation or
of the Trust Agreement or of any agreement, judgment, injunction, order, decree
or other instrument binding upon the Borrower or result in the creation or
imposition of any Lien on assets of the Borrower (other than the Lien of this
Agreement), or require the consent or approval of, or the filing of any notice
or other documentation with, any governmental authority or other Person. The
Borrower has not entered into any other Agreements other than the Basic
Agreements and agreements necessary for the transactions contemplated thereby.

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

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

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

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

                                       10
<PAGE>

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

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

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

     (j) Solvency. The Borrower is not insolvent and will not be rendered
         --------
insolvent immediately following the consummation on the Effective Date and on
any Funding Date of the transactions contemplated by this Agreement and the
other Basic Agreements, including (but not limited to) the pledge by the
Borrower to the Administrative Agent of the Collateral in accordance with this
Agreement.

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

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

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

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

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

                                       11
<PAGE>

     (p) No Material Adverse Change. Since June 30, 2000, and in the case of the
         --------------------------
Borrower, as of the date of its formation, there has been no material adverse
change in the business, assets, operations, prospects or conditions (financial
or otherwise) of the Sellers, or the Servicer, either individually or taken as a
whole.

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

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

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

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

     (a) Preservation of Collateral. Subject to the rights, powers and
         --------------------------
authorities granted to the Administrative Agent and the Secured Parties in this
Agreement, the Borrower shall take such action as is necessary and proper with
respect to the Collateral in order to preserve and maintain such Collateral and
to cause (subject to the rights of the Secured Parties) the Administrative Agent
to perform its obligations with respect to such Collateral as provided herein.
The Borrower will do, execute, acknowledge and deliver, or cause to be done,
executed, acknowledged and delivered, such instruments of transfer or take such
other steps or actions as may be necessary, or required by the Required Lending
Groups, to perfect the security interests granted hereunder in the Collateral,
to ensure that such security interests rank prior to all other Liens and to
preserve the priority of such security interests and the validity and
enforceability thereof. Upon any delivery or substitution of Collateral, the
Borrower shall be obligated to execute such documents and perform such actions
as are necessary to create in the Administrative Agent for the

                                       12
<PAGE>

benefit of the Secured Parties a valid first Lien on, and valid and perfected
first priority security interest in, the Collateral so delivered and to deliver
such Collateral to the Administrative Agent, free and clear of any other Lien,
together with satisfactory assurances thereof, and to pay any reasonable costs
incurred by any of the Secured Parties or the Administrative Agent (including
its agents) or otherwise in connection with such delivery. The Borrower will not
take any action to cause the Collateral or any portion thereof to be an
instrument (as such term is defined in the Relevant UCC).

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

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

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

                                       13
<PAGE>

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

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

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

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

        (ii) incur any indebtedness, assume or guaranty any indebtedness of any
    other entity, other than any indebtedness to either Seller thereof incurred
    in connection with the acquisition of Receivables and Other Conveyed
    Property, which indebtedness shall be subordinated as set forth in the
    Receivables Sale Agreement, or engage in any transactions with any
    Affiliates, except as contemplated

                                       14
<PAGE>

under this Agreement and the other Basic Agreements (provided that this clause
                                                     --------
shall not be deemed to prohibit the sale of Receivables, on arm's-length terms,
to an Affiliate of the Borrower in connection with an Optional Prepayment
pursuant to this Agreement; provided further that no such sales shall be
                            -------- -------
permitted to be made to AFS unless such sale is in connection with a public
asset-backed transaction);

        (iii) institute proceedings to be adjudicated bankrupt or insolvent, or
consent to the institution of bankruptcy or insolvency proceedings against it,
or file a petition seeking or consent to reorganization or relief under any
acplicable 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 a substantial part of its property, or make
any assignment for the benefit of creditors, or admit in writing its inability
to pay its debts generally as they become due, or take any action in furtherance
of any such action;

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

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

                                       15
<PAGE>

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

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

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

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

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

                                       16
<PAGE>

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

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

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

                                       17
<PAGE>

                                    ARTICLE V

                REQUIRED LENDING GROUPS; INTERCREDITOR PROVISIONS

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

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

     Section 5.3 Degree of Care. Notwithstanding any term or provision of this
                 --------------
Agreement, no Secured Party (including any Secured Party that is a member of the
Required Lending Groups) shall incur any liability to AmeriCredit Corp., the
Sellers, the Servicer or the Borrower for any action taken or omitted by any
Secured Party (including any Secured Party that is a member of the Required
Lending Groups) in connection with the Collateral and, further, shall incur no
liability to any other Secured Party (including any Secured Party that is part
of the Required Lending Groups); provided, however, that the foregoing shall not
                                 -----------------
be deemed to relieve any Secured Party of liability for its own gross
negligence, bad faith or willful misconduct. Each Secured Party (including any
Secured Party that is a member of the Required Lending Groups) shall be
protected and shall incur no liability to any such party in relying upon the
accuracy, acting in reliance upon the contents and assuming the genuineness of
any notice, demand, certificate, signature, instrument or other document
believed by such Secured Party to be genuine and to have been duly executed by
the appropriate signatory, and (absent manifest error or actual knowledge to the
contrary), no such Secured Party shall be required to make

                                       18
<PAGE>

any independent investigation with respect thereto. Each Secured Party shall, at
all times, be free independently to establish to its reasonable satisfaction the
existence or nonexistence, as the case may be, of any fact the existence or
nonexistence of which shall be a condition to the exercise or enforcement of any
right or remedy under this Agreement or any of the other Basic Agreements.

                                       19
<PAGE>

                                   ARTICLE VI

                          TERMINATION EVENTS; REMEDIES

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

                                       20
<PAGE>

any or all Collateral at one or more public or private sales, for cash or credit
or future delivery, on such terms and in such manner as the Required Lending
Groups may determine; (iv) require the Borrower to assemble the Collateral and
make it available to the Administrative Agent at a place to be designated by the
Administrative Agent; (v) enter onto any property where any Collateral is
located and take possession thereof with or without judicial process; and (vi)
enforce any rights of the Borrower under any Receivable or other agreement to
the extent the Required Lending Groups deems appropriate.

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

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

     (c) The Administrative Agent on behalf of the Secured Parties shall be
entitled to obtain from the Borrower all records and documentation in the
possession of the Borrower pertaining to any Collateral. Upon consummation of
any sale pursuant to this Section 6.1, the Required Lending Groups, or the
Administrative Agent acting on behalf of and at the direction of the Required
Lending Groups, shall have the right to assign, transfer, indorse and deliver to
the purchaser or purchasers thereof, free and clear of any Lien, the Collateral,
or any portion thereof or any interest therein, so sold. Each purchaser at any
such sale shall hold the property purchased by it absolutely free and clear from
any claim or right on the part of the Secured Parties or the Borrower, and the
Borrower hereby irrevocably waives all

                                       21
<PAGE>

rights of redemption, stay, marshalling of assets or appraisal that it now has
or may at any time in the future have under applicable law or statute now
existing or hereafter enacted.

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

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

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

                                       22
<PAGE>

notation of the Borrower's and/or the Administrative Agent's respective
security interests recorded on such Financed Vehicle's certificate of title.

     Section 6.2 Restoration of Rights and Remedies. If the Administrative Agent
                 ----------------------------------
has instituted any proceeding to enforce any right or remedy under this
Agreement, and such proceeding has been discontinued or abandoned for any
reason, or has been determined adversely to the Administrative Agent, then and
in every such case the Borrower, the Administrative Agent and each of the
Secured Parties shall, subject to any determination in such proceeding, be
restored severally and respectively to their former positions hereunder, and
thereafter all rights and remedies of the Secured Parties shall continue as
though no such proceeding had been instituted.

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

                                       23
<PAGE>

                                   ARTICLE VII

                                FUNDINGS; THE VFN

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

     (a) Funding Generally. Upon the terms and subject to the conditions set
         -----------------
forth herein, prior to the Commitment Expiry Date, and provided that (i) in the
                                                       --------
case of HLS no Potential Wind-Down Event or Wind-Down Event shall have occurred
and be continuing and (ii) in the case of APA Banks, no Termination Event or
Potential Termination Event shall have occurred and be continuing, each of the
CP Lenders may, in its sole discretion, and the APA Banks shall (subject to the
terms and conditions specified herein), collectively make an advance under the
terms and conditions hereof (any such advance, a "Funding" and the first such
                                                  -------
advance, the "Initial Funding") to the Borrower from time to time on or after
              ---------------
the Effective Date. Each Funding by a Lending Group shall be made on a pro rata
basis based on such Lending Group's Facility Limit as a percentage of the
aggregate Facility Limit of all Lending Groups (except for any same day Funding
which shall only be made by PARCO as set forth below); each Funding by an APA
Bank in a Lending Group shall be made on a pro rata basis based on such APA
                                           --- ----
Bank's Commitment as a percentage of the aggregate Commitment of all APA Banks
in such Lending Group. Amounts advanced by the Lending Groups on any day in
connection with a Funding may include CP Fundings, Eurodollar Fundings and ABR
Fundings or any combination thereof.

     To request Fundings hereunder, the Borrower shall notify the Administrative
Agent of such request by telephone (a) in the case of a Eurodollar Funding, not
later than 11:00 A.M. (New York time) three (3) Business Days before the date of
the proposed Funding, (b) in the case of an ABR Funding, not later than 12:30
P.M. (New York Time) on the proposed date of such Funding and (c) in the case of
a CP Funding, (x) not later than 11:00 A.M. (New York time) on the date of the
proposed Funding if same day Funding is requested of PARCO (such request to
include a list of Receivables to be pledged for such same day Funding) or
otherwise (y) not later than 12:30 P.M. (New York time) one (1) Business Day
before the date of the proposed Funding. Each day on which a Funding is made
hereunder shall be a Business Day. Each such telephonic request for a Funding
shall be irrevocable and shall be confirmed promptly by hand delivery or
telecopy to the Administrative Agent of a written funding request (each, a
"Funding Request") in a form approved by the Administrative Agent and signed by
 ---------------
the Borrower. Each such telephonic and

                                       24
<PAGE>

written Funding Request shall specify the following information in compliance
with Section 7.1(b):

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

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

          (iii) whether such Funding is to be a CP Funding, an ABR Funding or a
     Eurodollar Funding (provided that with respect to HLS and Eiffel prior to
     the occurrence of a Wind-Down Event applicable to such CP Lender (or upon
     the termination of such Wind-Down Event, if applicable), all Fundings on
     behalf of HLS and Eiffel, as applicable, shall be CP Fundings);

          (iv) in the case of a CP Funding or a Eurodollar Funding, the CP
     Funding Period or Eurodollar Funding Period to be applicable thereto, which
     shall be a period contemplated by the definition of the term "CP Funding
     Period" and "Eurodollar Funding Period", respectively; provided however,
                                                            ----------------
     that the funding period for same day Funding shall be no more than five
     Business Days; and

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

If no election as to the type of Funding is specified, then the requested
Funding shall be at the discretion of each Funding Agent (with the consent of
the related CP Lender if the related Funding Agent so selects a CP Funding).
Promptly following receipt of a Funding Request in accordance with this Section
7.1(a), each Funding Agent shall promptly advise each Secured Party in its
Lending Group of the details thereof and of the amount of such Secured Party's
loan to be made as part of the requested Funding (if any). Notwithstanding
anything to the contrary in this Section 7.1(a), the Borrower shall be permitted
to request up to two (2) Fundings per calendar week, and up to nine (9) Fundings
per calendar month.

                                       25
<PAGE>

     (b) Conditions to Funding. No Secured Party shall have any obligation to
         ---------------------
advance any funds to the Borrower in connection with any Funding unless, on the
date of such Funding, (i) after giving effect to such Funding, the Aggregate Net
Investment plus the Interest Component of all Commercial Paper issued by the CP
           ----
Lenders to fund the Aggregate Net Investment (it being understood that, for
purposes of determining whether the Interest Component of Commercial Paper may
be paid from the proceeds of Commercial Paper issued on the maturity date of
such Commercial Paper, the amount of such capitalized Interest Component shall
constitute a "Funding") would not exceed the Maximum Facility Limit and, in the
case of a Funding for the acquisition of Asset Backed Securities, after giving
effect to such Funding, the aggregate Net Investment as it relates to Asset
Backed Securities would not exceed the ABS Funding Sub-Limit and in the case of
a same day Funding, after giving effect to such Funding, the sum of all
outstanding same day Fundings, would not exceed the Swing Line Funding Limit
(such same day Funding only to be provided by PARCO); (ii) with respect to each
Lending Group, after giving effect to such Funding, the related Net Investment
of such Lending Group plus the Interest Component of all Commercial Paper issued
                      ----
by the CP Lenders in such Lending Group to fund such Net Investment (it being
understood that, for purposes of determining whether the Interest Component of
Commercial Paper may be paid from the proceeds of Commercial Paper issued on the
maturity date of such Commercial Paper, the amount of such capitalized Interest
Component shall constitute a "Funding") would not exceed the related Facility
Limit and, in the case of a Funding for the acquisition of Asset Backed
Securities after giving effect to such Funding, the related Net Investment as it
relates to Asset Backed Securities would not exceed the ABS Funding Sub-Limit
and, in the case of a same day Funding, after giving effect to such Funding, the
sum of all outstanding same day Fundings would not exceed the Swing Line Funding
Limit (such same day Funding only to be provided by PARCO); (iii) each APA
Bank's pro rata share of such Funding, would not exceed the amount of its unused
       --- ----
Commitment (it being understood that, for purposes of determining whether the
Interest Component on Commercial Paper may be paid from the proceeds of
Commercial Paper issued on the maturity date of such Commercial Paper, the
amount of such capitalized Interest Component shall constitute a "Funding");
(iv) the Borrower has provided a Funding Request to the Administrative Agent and
each Funding Agent, which Funding Request shall include the calculations
necessary to satisfy the requirement set forth in clauses (i), (ii) and (iii)
above and shall also include a certification by an authorized officer of the
Trustee on behalf of the Borrower that, to the best of such officer's knowledge,
no event has occurred since the most recent Funding that would have a material
and adverse effect on the Receivables, AmeriCredit Corp., the Sellers, the
Servicer or the Borrower; (v) the Borrower shall have deposited in the
Collection Account, or shall have given

                                       26
<PAGE>

irrevocable instructions to the Administrative Agent to withhold from the
proceeds of such Funding and to deposit in the Collection Account, as the case
may be, in each case for allocation to the Collection Account Reserve, an amount
equal to the Collection Account Reserve Shortfall Amount, if any; (vi) the VFN
is rated at least "A2" by Moody's and the VFN is rated at least "A" by S&P;
(vii) one or more binding and enforceable Hedge Contracts in an aggregate
notional amount equal to the Aggregate Net Investment (including any Aggregate
Net Investment to be made in connection with such Funding) are in full force and
effect in accordance with the terms of the Sale and Servicing Agreement; (viii)
each representation and warranty of the Borrower herein shall be true and
correct with respect to the Borrower and each Receivable as of the date of such
Funding; (ix) a Potential Wind-Down Event or a Wind-Down Event (each only in the
case of a Funding to be made by HLS), or a Potential Termination Event or a
Termination Event, shall not have occurred and be continuing; (x) if the Funding
is to be made by a CP Lender through the issuance of Commercial Paper, such CP
Lender has advised the Administrative Agent that, in its sole discretion, it has
elected to make such Funding; (xi) in connection with the initial Funding
following the Effective Date, the conditions precedent set forth in Section
7.1(g) hereof and Section 3.2 of the Sale and Servicing Agreement shall be
satisfied; and (xii) after giving effect to such Funding, no Pool Limitation
would be exceeded. Any Funding made the same day such Funding is requested shall
be made solely by PARCO, at PARCO's sole discretion, in an amount not to exceed
the Swing Line Funding Limit.

     Notwithstanding anything to the contrary set forth in this Agreement, no
APA Bank shall have any obligation to advance funds to the Borrower on any
Funding Date if, on such day, any Termination Event or Potential Termination
Event shall have occurred and be continuing. The Administrative Agent shall
notify each Funding Agent of the receipt and content of any Funding Request by
no later than 2:30 P.M. on the date on which such Funding Request was received
by the Administrative Agent and, in connection therewith, shall advise such
Funding Agent of the portion of such Funding which its related Lending Group is
required to make available to the Borrower; if such notification is provided to
the Funding Agents after 2:30 P.M. on such date, then the Funding Request shall
be deemed to be received on the following Business Day. Each Funding Agent shall
promptly advise the APA Banks in its related Lending Group (by telecopy or by
telephone call promptly confirmed in writing by telecopy) of the receipt and
content of any Funding Request.

     The APA Banks' several obligations to provide the Borrower with funds
pursuant to this Article VII shall terminate on the Commitment Expiry Date.
Notwithstanding anything contained in this Section 7.1 or elsewhere in this
Agree-

                                       27
<PAGE>

ment to the contrary, no APA Bank shall be obligated to provide the Borrower
with aggregate funds in connection with a Funding Request in an amount that
would exceed such APA Bank's unused Commitment then in effect, and the failure
of any APA Bank to make its pro rata share of the Funding available to the
                            --------
Borrower (subject to the terms and conditions set forth herein) shall not
relieve any other APA Bank of its obligations hereunder. The obligations of the
Lending Groups hereunder to provide Fundings shall be several and not joint.

           (c) Advance Percentage. With respect to any Funding Date, the advance
               ------------------
percentage with respect to Receivables and Asset Backed Securities (the "Advance
                                                                         -------
Percentage") to determine the Advance Amount shall be 100% with respect to Asset
----------
Backed Securities, subject to the reserve requirement to be established at or
prior to the initial funding under the ABS Funding Sublimit, as acceptable to
each Lending Group and the Primary Seller, and shall be 89% with respect to
Receivables, subject in the case of Receivables to downward adjustment on such
Funding Date as described below:

                   (1) if a "Trigger Event" (such term meaning, for purposes of
     this Section 7.1(c), (i) a "Trigger Event" as defined in any public asset-
     backed transaction, which transaction has been outstanding for twenty-four
     months or less from the date hereof or (ii) if applicable, any comparable
     "spread capture event" in any automobile receivables transaction conducted
     by any Securitization Trust, which transaction has been outstanding for
     twenty-four months or less from the date hereof, whether or not defined in
     such transaction as a "Trigger Event" and whether or not such transaction
     is a public transaction) occurs which continues unremedied for two (2)
     monthly reporting periods and is waived by the party or parties entitled to
     exercise such waiver under the related transaction documentation, then the
     Advance Percentage in effect at the opening of business on such Funding
     Date shall be reduced by 2%; provided that if the Trigger Event relates to
                                  --------
     a delinquency test failure and occurs after the Pool Factor (as defined in
     the related transaction documentation) is below 25%, the Advance Percentage
     shall not be so reduced; provided further that if the Advance Percentage
                              -------- -------
     has been reduced as a result of the application of this clause (1), the
     Advance Percentage shall remain at such reduced percentage until such time
     as the related Trigger Event has been cured for a period of three (3)
     consecutive months;

                                       28
<PAGE>

                   (2) if a Trigger Event occurs, and is not waived by the
     Person or Persons entitled to exercise such waiver under the related
     transaction documentation, within the twenty-four month period referred to
     in (1) above for any particular asset-backed transaction (whether or not
     such transaction is a public transaction) (and such Trigger Event shall be
     deemed unwaived if there is no Person or Persons entitled to so waive),
     then the Advance Percentage in effect at the opening of business on such
     Funding Date shall be reduced by 6% (without duplication of any reduction
     pursuant to clause (1) above); and

                   (3) if there is an Excess Spread Deficiency (calculated as of
     the close of business one (1) Business Day prior to such Funding Date),
     then the Advance Percentage shall be reduced by the product of (i) the
     amount of such Excess Spread Deficiency (stated as a percentage) multiplied
                                                                      ----------
     by (ii) 2.0; provided that if the Advance Percentage has been reduced as a
     --           --------
     result of the application of this clause (3), the Advance Percentage shall
     remain at such reduced percentage until such time as the Excess Spread
     Deficiency has been cured.

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

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

           (f) The VFN.
               -------

                   (i) The Borrower's obligation to pay the principal of, and
     interest on, all amounts advanced by the Secured Parties pursuant to any
     Funding shall be evidenced by a single note of the Borrower (as amended,
     supplemented or otherwise modified and in effect from time to time, the
     "VFN") which shall (1) be dated the date hereof; (2) be in the stated
      ---
     principal amount equal to the Maximum Facility Limit (as reflected from
     time to time on the grid attached thereto); (3) bear

                                       29
<PAGE>

     interest as provided therein; (4) be payable to the order of the
     Administrative Agent for the account of the Secured Parties (in proportion
     to the pro rata shares of the Lending Groups based upon their respective
     aggregate Net Investments) and mature on the Distribution Date occurring in
     the calendar month seventy-eight (78) months following the Commitment
     Expiry Date (unless otherwise accelerated pursuant to the terms of the
     Basic Agreements); provided however that the principal amount of any same
                        -------- -------
     day Funding shall be due not later than the fifth Business Day immediately
     following such same day Funding date; (5) be entitled to the benefits of
     this Agreement and the other Basic Agreements; and (6) be substantially in
     the form of Exhibit A to this Agreement, with blanks appropriately
     completed in conformity herewith. In consultation with the Funding Agents,
     the Administrative Agent shall, and is hereby authorized to, make a
     notation on the schedule attached to the VFN of the date and the amount of
     each Funding and the date and amount of the payment of principal thereon,
     and prior to any transfer of the VFN, the Administrative Agent, on behalf
     of the Secured Parties, shall indorse the outstanding principal amount of
     the VFN on the schedule attached thereto. The entries made by the
     Administrative Agent pursuant to the preceding sentence shall be prima
                                                                      -----
     facie evidence of the existence and amounts of the obligations recorded
     -----
     therein; provided, however, that failure to make such notation shall not
              --------  -------
     adversely affect the rights of the Secured Parties with respect to the
     payment obligations of the Borrower hereunder and under the VFN.

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

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

          2. Unless such Optional Prepayment is to be effected on a Distribution
     Date (in which case the relevant calculations with respect to such Optional
     Prepayment shall be reflected on the applicable Servicer's Determination
     Date Certificate), the Borrower shall cause the Servicer to deliver to the
     Administrative Agent, the Backup

                                       30
<PAGE>

     Servicer and the Rating Agencies a Servicer's VFN Prepayment Date
     Certificate substantially in the form of Exhibit B-2 to the Sale and
     Servicing Agreement, together with evidence to the Administrative Agent,
     the Funding Agents, the Backup Servicer and the Rating Agencies (which
     evidence may consist solely of the Servicer's VFN Prepayment Date
     Certificate) that the Borrower shall have sufficient funds on the
     contemplated VFN Prepayment Date to effect the Optional Prepayment in
     accordance with this Agreement. Any such Servicer's VFN Prepayment Date
     Certificate and related evidence shall be delivered to the Administrative
     Agent no later than 1:00 P.M. (New York time), in draft form at least two
     (2) Business Days prior to the contemplated VFN Prepayment Date and in
     final form at least one Business Day prior to the contemplated VFN
     Prepayment Date. In effecting an Optional Prepayment, the Borrower may (i)
     use the proceeds of sales of the Receivables and/or Asset Backed Securities
     (which sales must be made in arm's-length transactions to Persons other
     than AFS unless such sale is in connection with a public asset-backed
     transaction), and (ii) give effect to Collections on deposit in the
     Collection Account at such time to the extent consistent with the
     requirements of paragraph 4 below (as evidenced by the Servicer's VFN
     Prepayment Date Certificate).

          3. In connection with any such Optional Prepayment that does not
     constitute a prepayment in full of the outstanding VFN Balance, then,
     following receipt by each Funding Agent of the amounts referred to in
     paragraph 5 below (and confirmation by each such Funding Agent to the
     Administrative Agent), there shall be released from the Lien of this
     Agreement (subject to the requirements of paragraph 4 below): (i) a portion
     of the Receivables constituting a part of the Pool Balance selected by the
     Borrower in accordance with the eligibility criteria established for the
     related asset-backed transaction and additionally selected in accordance
     with the earliest origination date of all Receivables; provided, however,
     that the Borrower shall not have used any adverse selection procedures with
     respect to the Receivables; and (ii) such other Receivables or Asset Backed
     Securities not then constituting part of the Pool Balance, excluding,
     however, any Receivable or Asset Backed Securities subject to a Repurchase
     Obligation ("Other Designated Receivables" or "Other Designated Asset
                  ----------------------------      ----------------------
     Backed Securities," as applicable) as the Borrower intends to sell or
     -----------------
     distribute in accordance with the terms hereof and as are designated

                                       31
<PAGE>

     by the Borrower and specified in the Servicer's VFN Prepayment Date
     Certificate (such Receivables and/or Asset Backed Securities and such Other
     Designated Receivables or Other Designated Asset Backed Securities,
     together, in each case, with the related Other Conveyed Property, being
     collectively referred to as the "Prepayment Related Collateral").
                                      -----------------------------

          4. After giving effect to the Optional Prepayment and the release of
     Prepayment Related Collateral from the Lien of this Agreement on any VFN
     Prepayment Date, (x) the remaining VFN Balance minus Adjusted Collections,
                                                    -----
     plus the amount of accrued and unpaid interest or discount, as applicable,
     ----
     on all outstanding Fundings, together with all accrued and unpaid fees and
     other costs and expenses due and owing to the Lending Groups, shall be less
     than or equal to the amount resulting when the effective Advance Percentage
     is multiplied by the remaining Pool Balance, (y) none of the Pool
     Limitations shall be exceeded and (z) a Termination Event or Potential
     Termination Event shall not have resulted;

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

          5. On the related VFN Prepayment Date, the Administrative Agent shall
     have received, for the benefit of the Secured Parties, in immediately
     available funds, an amount equal to the sum of (i) the portion of the VFN
     Balance to be prepaid plus (ii) an amount equal to all unpaid Carrying
                           ----
     Costs (including Carrying Costs not yet accrued) to the extent reasonably
     determined by the Funding Agents (and notified to the Administrative Agent)
     to be attributable to that portion of the Aggregate Net Investment to be
     prepaid plus (iii) an aggregate amount equal to the sum of all other
             ----
     amounts due and owing to the Administrative Agent, the Funding Agents and
     the Secured Parties under this Agreement and the other Basic Agreements, to
     the extent accrued to such date and to accrue thereafter, as reasonably
     determined by the Funding Agents (and notified to the Administrative

                                       32
<PAGE>

          Agent) to be attributable to that portion of the Aggregate Net
     Investment to be prepaid.

          6. In connection with the Optional Prepayment of any Funding made to
     the Borrower with the proceeds of Commercial Paper, the Borrower shall, on
     the related Interest Payment Date, pay to the related CP Lenders all
     interest or discount, as applicable, accrued and unpaid and to accrue
     through the maturity date(s) related to such Commercial Paper.

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

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

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

                 (i) The Administrative Agent shall have received such opinions
     of counsel to the Sellers, the Servicer and the Borrower, in form and
     substance acceptable to the Administrative Agent and each

                                       33
<PAGE>

     Funding Agent, addressing such matters as each Funding Agent and the
     Administrative Agent, on behalf of the Secured Parties, shall request.

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

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

          (iv)  Each party to a Basic Agreement shall have performed and
     complied with all agreements and conditions contained in such Basic
     Agreement and all other documents delivered in connection herewith or
     therewith which are required to be performed or complied with by such
     party.

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

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

                  (1) copy of the Trust Agreement, certified by the Secretary or
          an Assistant Secretary of the Trustee as of the date hereof, duly
          authorizing the execution, delivery and performance by the Borrower of
          the documents executed by or on behalf of the Borrower in connection
          with the transactions

                                       34
<PAGE>

          contemplated by this Agreement and the other Basic Agreements to which
          it is a party; and attesting to the names and true signatures of the
          person or persons executing and delivering each such document;

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

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

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

             (viii) The Sellers and the Borrower shall have filed any financing
     statements or amendments thereto, wherever necessary or advisable in the
     judgment of the Administrative Agent and the Funding Agents, in order to
     perfect the transfer and assignment of the

                                       35
<PAGE>

     Receivables to the Borrower and the grant of the security interest therein
     to the Administrative Agent and shall have delivered file-stamped copies of
     such financing statements or other evidence of the filing thereof to the
     Administrative Agent.

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

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

              (xi) If applicable, each Funding Agent shall have received written
     confirmation from each of the Rating Agencies that the then-current ratings
     assigned by each of them to the Commercial Paper issued by its related CP
     Lender will not be reduced or withdrawn as a result of the execution and
     delivery of this Agreement by such CP Lender.

          (h) Maturity of Commercial Paper. HLS shall not issue any Commercial
              ----------------------------
Paper related to the VFN with a maturity in excess of ninety (90) days in
connection with any financing or refinancing of an increase in the VFN.

          Section 7.2 Sharing of Payments, Etc. If any Secured Party (for
                      ------------------------
purposes of this Section 7.2 only, being a "Recipient") shall obtain any payment
                                            ---------
(whether voluntary, involuntary, through the exercise of any right of setoff, or
otherwise) on account of any interest in the VFN owned by it (other than
payments made in connection with any same day Funding) in excess of its ratable
share (based on the proportion of its Net Investment to the aggregate Net
Investment of all Lender Groups) of payments on account of any interest in the
VFN obtained by such Secured Parties entitled thereto, such Recipient shall
forthwith purchase from such Secured Parties entitled to a share of such amount
participations in the percentage interests owned by such Persons as shall be
necessary to cause such Recipient to share the excess payment ratably with each
such other Person entitled thereto; provided, however, that if all or any
                                    --------  -------
portion of such excess payment is thereafter recovered

                                      36
<PAGE>

from such Recipient, such purchase from each such other Person shall be
rescinded and each such other Person shall repay to the Recipient the purchase
price paid by such Recipient for such participation to the extent of such
recovery, together with an amount equal to such other Person's ratable share
(according to the proportion of (a) the amount of such other Person's required
payment to (b) the total amount so recovered from the Recipient) of any interest
or other amount paid or payable by the Recipient in respect of the total amount
so recovered. Payments received by a Recipient in connection with any same day
Funding shall be treated by PARCO APA Banks in the same manner set forth in this
                                                   ----
Section.

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

     Section 7.4 Interest. (a) Any Funding (or portion thereof) funded by a CP
                 --------
Lender through the issuance of Commercial Paper shall bear interest calculated
at such CP Lender's applicable CP Rate.

     (b) At the option of the Borrower (and in the case of HLS, following a
Wind-Down Event for HLS), any Funding (or portion thereof) made by a CP Lender
other than through the issuance of Commercial Paper or by an APA Bank in such
Lending Group to the Borrower pursuant to Section 7.1 hereof shall bear interest
at either (i) if available from such APA Bank to the Borrower on the related
Funding Date, the related Eurodollar Rate for such APA Bank or (ii) in all other
cases, the related Alternate Base Rate for such APA Bank; provided that any
                                                          --------
Funding (or portion thereof) made by Eiffel other than through the issuance of
Commercial Paper or by an Eiffel Liquidity Bank shall bear interest at the
Eiffel Eurodollar Rate.

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

                                       37
<PAGE>

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

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

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

     Section 7.5 Payments Generally. All payments by the Borrower hereunder
                 ------------------
shall be at the times, and in the manner, specified in Section 6.8 of the Sale
and Servicing Agreement. Notwithstanding any provision of this Agreement or the
other Basic Agreements to the contrary, all amounts due and owing to the
Administrative Agent, the Funding Agents and the Secured Parties by the Borrower
hereunder and under the other Basic Agreements (if not due on an earlier date in
accordance with the terms hereof or the other Basic Agreements) will be due and
payable on the Distribution Date occurring in the month seventy-eight (78)
months following the Commitment Expiry Date.

     Section 7.6 Broken Funding. In the event of (a) the payment of any
                 --------------
principal of any Eurodollar Funding other than on the last day of a Eurodollar
Funding Period applicable thereto (including as a result of a Termination Event,
Potential Termination Event or Optional Prepayment), (b) the conversion of any

                                       38
<PAGE>

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

     Section 7.7 Conversion and Continuation of Outstanding Advances Made by the
                 ---------------------------------------------------------------
APA Banks. Prior to the occurrence of a Termination Event or a Potential
---------
Termination Event, (a) each ABR Funding hereunder may, at the option of the
Borrower, be converted to a Eurodollar Funding, (b) each Eurodollar Funding
hereunder may, at the option of the Borrower, be continued as a Eurodollar
Funding or converted to an ABR Funding. If a Termination Event or Potential
Termination Event has occurred and is continuing, then, for so long as any such
Termination Event or Potential Termination Event is continuing, (i) no
outstanding Funding may be converted to, or continued as, a Eurodollar Funding,
(ii) unless repaid, each Eurodollar Funding shall be converted to an ABR Funding
on the next succeeding Interest Payment Date related thereto. For any such
conversion or continuation, the Borrower shall give the applicable Funding Agent
irrevocable notice (each, a "Conversion/Continuation Notice") of such request
                             ------------------------------
not later than 12:30 P.M. (New York time) (i) in the case of a conversion of an
ABR Funding into a Eurodollar Funding, or a continuation of a Eurodollar Funding
as a Eurodollar Funding, three (3) Business Days before the date of such
conversion or continuation, as applicable, and (ii) following the occurrence and
continuation of a Termination Event or a Potential Termination Event, in the
case of a conversion of a Eurodollar Funding into an ABR Funding or a
continuation of an ABR Funding as an ABR Funding, on the

                                       39
<PAGE>

Business Day of such conversion (with a copy to the Administrative Agent). If a
Conversion/Continuation Notice has not been timely delivered with respect to any
ABR Funding or Eurodollar Funding, such Funding shall be automatically continued
as, or converted to, an ABR Funding. Each Conversion/Continuation Notice shall
specify (a) the requested date (which shall be a Business Day) of such
conversion or continuation, (b) the aggregate amount and rate option applicable
to the Funding which is to be converted or continued and (c) the amount and rate
option(s) of Funding(s) into which such Funding is to be converted or continued.
Each CP Funding and in the case of HLS, prior to the occurrence of a Wind-Down
Event with respect to HLS (or upon the termination of such Wind-Down Event, if
applicable), shall be continued, subject to the terms and conditions hereof, for
another CP Funding Period of a duration to be agreed upon between the Borrower
and such CP Lender (or, if the Borrower does not specify the duration, for a
duration specified by such CP Lender).

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

     If any such conversion of a portion of a Eurodollar Funding occurs on a day
which is not the last day of the related Eurodollar Funding Period, the Borrower
shall pay to such APA Bank such amounts, if any, as may be required to
compensate such APA Bank pursuant to Section 7.6 hereof. If circumstances
subsequently change so that it is no longer unlawful for an affected APA Bank to
acquire or to maintain a portion of a Eurodollar Funding as contemplated
hereunder, such APA Bank will, as soon as reasonably practicable after such APA
Bank knows of such change in circumstances, notify the Borrower, and the related
Funding Agent

                                       40
<PAGE>

(with a copy to the Administrative Agent), and upon receipt of such notice, the
obligations of such APA Bank to acquire or maintain its acquisition of portions
of Eurodollar Fundings or to convert its portion of an ABR Funding into portions
of Eurodollar Fundings shall be reinstated.

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

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

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

                     (ii) the applicable Funding Agent shall have received
     notice from one or more of the APA Banks in its Lending Group that the
     Eurodollar Rate determined or to be determined for such Eurodollar Funding
     Period will not adequately and fairly reflect the cost to such APA Banks
     (as conclusively certified by such APA Banks) of purchasing or maintaining
     their affected portions of Eurodollar Fundings during such Eurodollar
     Funding Period;

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

                                       41
<PAGE>

     Section 7.10 Fees. The Borrower hereby agrees to pay to each Funding Agent,
                  ----
for the account of the Secured Parties in its Lending Group (and, if applicable,
itself), the fees specified in the Fee Letter. Such payments shall be made to
the Funding Agents on the dates and in the manner specified in the Fee Letters.

                                  ARTICLE VIII

                                 INDEMNIFICATION

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

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

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

     (c) the failure to vest and maintain vested in the Administrative Agent on
behalf of the Secured Parties a first priority perfected security interest in
the

                                       42
<PAGE>

Collateral (including, without limitation, all Financed Vehicles securing
Receivables), free and clear of any Lien (other than the Lien of this
Agreement);

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

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

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

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

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

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

                                       43
<PAGE>

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

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

          (2) imposes upon any Indemnified Party any other expense (including,
     without limitation, reasonable attorneys' fees and expenses, and expenses
     of litigation or preparation therefor in contesting any of the foregoing)
     with respect to this Agreement, the other Basic Agreements, any Asset
     Purchase Agreement, any liquidity agreement between a CP Lender and one or
     more financial institutions relating to this Agreement, the Collateral or
     payments of amounts due hereunder or thereunder or its obligation to
     advance funds under any agreement or otherwise in respect of this
     Agreement, the other Basic Agreements, any Asset Purchase Agreement, any
     liquidity agreement between a CP Lender and one or more financial
     institutions relating to this Agreement, or the Collateral;

and the result of any of the foregoing is to increase the cost to such
Indemnified Party with respect to this Agreement, the other Basic Agreements,
any Asset Purchase Agreement, any liquidity agreement between a CP Lender and
one or more financial

                                       44
<PAGE>

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

     (b) If any Indemnified Party shall have determined that after the date
hereof, the adoption of any applicable Law or bank regulatory guideline
regarding capital adequacy, or any change therein, or any change in the
interpretation thereof by any Official Body, or any directive regarding capital
adequacy (in the case of any bank regulatory guideline, whether or not having
the force of law) of any such Official Body, has or would have the effect of
reducing the rate of return on capital of such Indemnified Party (or its parent)
as a consequence of such Indemnified Party's obligations hereunder or under any
of the Basic Agreements, any Asset Purchase Agreement, any liquidity agreement
between a CP Lender and one or more financial institutions relating to this
Agreement, or with respect hereto or thereto to a level below that which such
Indemnified Party (or its parent) could have achieved but for such adoption,
change, request or directive (taking into consideration its policies with
respect to capital adequacy) by an amount reasonably deemed by such Indemnified
Party to be material, then from time to time, within ten (10) days after demand
by a Funding Agent, the Borrower shall pay to such Funding Agent, for the
benefit of such Indemnified Party, such additional amount or amounts as will
compensate such Indemnified Party (or its parent) for such reduction; provided
                                                                      --------
that no such amount shall be payable with respect to any period commencing two
hundred seventy (270) days prior to the date such Funding Agent first notifies
the Borrower of its intention to demand compensation under this Section 8.2(b);
provided further that if such change in Law, rule or regulation giving rise to
-------- -------
such increased costs or reductions is retroactive, then such 270-day period
shall be extended to include the period of retroactive effect thereof.

     (c) The Administrative Agent, the Securities Intermediary and each Funding
Agent will promptly notify the Borrower of any event of which it has knowledge,
occurring after the date hereof, which will entitle an Indemnified Party to

                                       45
<PAGE>

compensation pursuant to this Article VIII. A notice by the Administrative Agent
or a Funding Agent claiming compensation for the benefit of an Indemnified Party
under this Article VIII and setting forth the additional amount or amounts to be
paid to it hereunder shall be conclusive in the absence of manifest error. In
determining such amount, the Administrative Agent, the Securities Intermediary
or such Funding Agent may use any reasonable averaging and attributing methods.

     Section 8.3  Indemnity for Taxes. (a) All payments made by the Borrower
                  -------------------
under this Agreement and any other Basic Agreement shall be made free and clear
of, and without deduction or withholding for or on account of, any present or
future income, stamp or other taxes, levies, imposts, duties, charges, fees,
deductions or withholdings, now or hereafter imposed, levied, collected,
withheld or assessed by any Official Body, excluding (i) taxes imposed on the
                                           ---------
net income of the Administrative Agent, the Securities Intermediary, any Funding
Agent or any other Indemnified Party, however denominated, and (ii) franchise
taxes imposed on any of them in lieu of income taxes, in each case imposed: (1)
by the United States or any political subdivision or taxing authority thereof or
therein; (2) by any jurisdiction under the laws of which the Administrative
Agent, the Securities Intermediary, any Funding Agent or such Indemnified Party
or lending office is organized or in which its lending office is located,
managed or controlled or in which its principal office is located or any
political subdivision or taxing authority thereof or therein; or (3) by reason
of any connection between the jurisdiction imposing such tax and the
Administrative Agent, the Securities Intermediary, any such Funding Agent, such
Indemnified Party or such lending office other than a connection arising solely
from this Agreement or any other Basic Agreement or any transaction hereunder or
thereunder (all such non-excluded taxes, levies, imposts, duties, charges, fees,
deductions or withholdings, collectively or individually, "Taxes"). If any such
                                                           -----
Taxes are required to be withheld from any amounts payable to the Administrative
Agent, the Securities Intermediary, any Funding Agent or any Indemnified Party
hereunder, the amounts so payable to the Administrative Agent, the Securities
Intermediary, any such Funding Agent or such Indemnified Party shall be
increased to the extent necessary to yield to such Person (after payment of all
Taxes) all amounts payable hereunder at the rates or in the amounts specified in
this Agreement and the other Basic Agreements. The Borrower shall indemnify the
Administrative Agent, the Securities Intermediary, any Funding Agent or any such
Indemnified Party for the full amount of any such Taxes on the Distribution Date
immediately succeeding the date of written demand therefor by such Person.

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

                                       46
<PAGE>

          (i)   deliver to the Borrower and to the related Funding Agent (A) two
     duly completed copies of IRS Form 1001 or Form 4224, or successor
     applicable form, as the case may be, and (B) if applicable, an IRS Form W-8
     or W-9, or successor applicable form, as the case may be;

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

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

unless, in any such case, an event (including, without limitation, any change in
treaty, law or regulation) has occurred prior to the date on which any such
delivery would otherwise be required which renders all such forms inapplicable
or which would prevent such Indemnified Party from duly completing and
delivering any such form with respect to it, and such Indemnified Party so
advises the Borrower and the related Funding Agent. Each such Indemnified Party
so organized shall certify (i) in the case of an IRS Form 1001 or IRS Form 4224,
that it is entitled to receive payments under the this Agreement and the other
Basic Agreements without deduction or withholding of any United States federal
income taxes and (ii) in the case of an IRS Form W-8 or IRS Form W-9, that it is
entitled to an exemption from United States backup withholding tax. Each Person
that becomes a party to this Agreement as an APA Bank, shall, prior to the
effectiveness of such assignment, participation or addition, as applicable, be
required to provide all of the forms and statements required pursuant to this
Section 8.3.

     Section 8.4  Other Costs, Expenses and Related Matters. The Borrower
                  -----------------------------------------
agrees, upon receipt of a written invoice, to pay or cause to be paid, and to
save the Secured Parties, the Administrative Agent, and the Securities
Intermediary harmless against liability for the payment of, all reasonable out-
of-pocket expenses (including, without limitation, all reasonable attorneys',
accountants' and other third parties' fees and expenses, and any filing fees and
expenses incurred by officers or employees of the Secured Parties, the
Administrative Agent, or the Securities Intermediary) incurred by or on behalf
of any Secured Party, the Administrative

                                       47
<PAGE>

Agent or the Securities Intermediary (i) in connection with the negotiation,
execution, delivery and preparation of this Agreement and the other Basic
Agreements and any documents or instruments delivered pursuant hereto or thereto
and the transactions contemplated hereby and thereby and (ii) from time to time
(a) relating to any amendments, waivers or consents under this Agreement and the
other Basic Agreements, (b) arising in connection with the Administrative
Agent's, the Securities Intermediary, the Secured Parties' or their respective
agents' enforcement or preservation of rights (including, without limitation,
the perfection and protection of the Administrative Agent's first priority
security interest in the Collateral), or (c) arising in connection with any
audit, dispute, disagreement, litigation or preparation for litigation involving
this Agreement.

                                       48
<PAGE>

                                   ARTICLE IX

                                  MISCELLANEOUS

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

     Section 9.2  Waiver. Any waiver by any party of any provision of this
                  ------
Agreement or any right, remedy or option hereunder shall only prevent and estop
such party from thereafter enforcing such provision, right, remedy or option if
such waiver is given in writing and only as to the specific instance and for the
specific purpose for which such waiver was given. The failure or refusal of any
party hereto to insist in any one or more instances, or in a course of dealing,
upon the strict performance of any of the terms or provisions of this Agreement
by any party hereto or the partial exercise of any right, remedy or option
hereunder shall not be construed as a waiver or relinquishment of any such term
or provision, but the same shall continue in full force and effect.

     Section 9.3  Amendments; Waivers. (a) Subject to the next succeeding
                  -------------------
provisos and Section 9.3(b), no amendment, waiver, supplement, modification or
discharge of any provision of this Agreement shall be effective unless the
Rating Agency Condition shall have been satisfied and such waiver or
modification shall be in writing and signed by the Borrower, the Administrative
Agent, and the Funding Agents in respect of the Required Lending Groups, and
then such amendment, waiver, supplement, modification or discharge shall be
effective only in the specific instance and for the specific purpose for which
given; provided that no such action that (i) increases or decreases the Facility
       --------
Limit of any Lending Group hereunder, (ii) reduces amounts payable hereunder to
the Administrative Agent, any Secured Party or any Funding Agent, (iii) modifies
in any way the payment of interest and/or discount, fees, indemnities and other
amounts to any Secured Party hereunder (or to the Administrative Agent or to any
Funding Agent on its behalf), including any defined terms necessary to calculate
any such amounts, (iv) extends the Commitment Expiry Date or maturity of any
amount due hereunder or, except in the case of HLS, affects the ability of any
CP Lender to assign its interests to its related APA Banks under its Asset
Purchase Agreement, (v) amends, modifies or waives any definition used herein
which relates to or refers to a specific Secured Party, (vi) increases the
Commitment of any APA Bank, or (vii) modifies the

                                       49
<PAGE>

provisions of Section 7.1 or this Section 9.3 or the definition of "Required
Lending Group" or any other provision hereof specifying the number or percentage
of APA Banks required to waive, amend or modify any rights hereunder or make any
determination or grant any consent hereunder; shall in any case be effective
without the prior written consent of such Person(s) affected thereby; provided
                                                                      --------
further that no such action that affects the rights, duties or obligations of
-------
the Administrative Agent or of any Funding Agent shall be effective without the
prior written consent of the Person(s) affected thereby. In the case of any
waiver, each of the parties hereto shall be restored to its former position and
rights hereunder, and any Termination Event or Servicer Termination Event waived
shall be deemed to be cured and not continuing; but no such waiver shall extend
to any subsequent or other Termination Event or Servicer Termination Event, or
impair any right consequent thereon.

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

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

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

                                       50
<PAGE>

remedy for breach of this covenant and that this covenant may be specifically
enforced.

     Section 9.6  Notices. All notices, demands, certificates, requests and
                  -------
communications hereunder ("notices") shall be in writing and shall be effective
(a) upon receipt when sent through the U.S. mails, registered or certified mail,
return receipt requested, postage prepaid, with such receipt to be effective the
date of delivery indicated on the return receipt, or (b) one Business Day after
delivery to an overnight courier, or (c) on the date personally delivered to an
Authorized Officer of the party to which sent, or (d) on the date transmitted by
legible telecopier transmission with a confirmation of receipt, in all cases
addressed to the recipient at its address set forth in Annex A to the Sale and
Servicing Agreement. A copy of each notice given hereunder to any party hereto
shall also be given to (without duplication) the Borrower, the Funding Agents
and the Administrative Agent. Each party hereto may, by notice given in
accordance herewith to each of the other parties hereto, designate any further
or different address to which subsequent notices shall be sent.

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

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

     Section 9.9  Consent of Required Lending Groups. In the event that the
                  ----------------------------------
consent of the Required Lending Groups is required under the terms hereof or
under the terms of any Basic Agreement, it is understood and agreed that, except
as otherwise provided expressly herein, the determination whether to grant or
withhold

                                       51
<PAGE>

such consent shall be made solely by each Secured Party in its sole and absolute
discretion.

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

     Section 9.11  Counterparts. This Agreement may be executed in two or more
                   ------------
counterparts by the parties hereto, and each such counterpart shall be
considered an original and all such counterparts shall constitute one and the
same instrument.

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

     Section 9.13  No Recourse Against Certain Parties. No recourse under or
                   -----------------------------------
with respect to any obligation, covenant or agreement (including, without
limitation, any obligation or agreement to pay fees or any other amount) of the
Borrower contained in this Agreement or any other agreement, instrument or
document entered into by it pursuant hereto or in connection herewith shall be
had against any incorporator, Affiliate, stockholder, officer, employee,
director or agent of the Borrower solely by virtue of its acting in such
capacity, by the enforcement of any assessment, by any legal or equitable
proceeding, by virtue of any statute or otherwise; it being expressly agreed and
understood that the agreements of the Borrower contained in this Agreement and
all of the other agreements, instruments and documents entered into by it
pursuant thereto or in connection herewith are, in each case, solely the
corporate obligations of the Borrower, and that no personal liability whatsoever
shall attach to or be incurred by any incorporator, stockholder, Affiliate,
officer, employee, director or agent of the Borrower, or any of them, under or
by reason of any of the obligations, covenants or agreements of the Borrower
contained in this Agreement or in any other such instrument, document or
agreement,

                                       52
<PAGE>

or which are implied therefrom, and that any and all personal liability of every
such incorporator, stockholder, affiliate, officer, employee, director or agent
of the Borrower for breaches by the Borrower of any such obligations, covenants
or agreements, which liability may arise either at common law or at equity, by
statute or constitution, or otherwise, is hereby expressly waived as a condition
of and in consideration for the execution of this Agreement; provided that the
                                                             --------
foregoing shall not relieve any such Person from any liability it might
otherwise have as a result of its fraudulent actions or omissions.

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

     Section 9.15  Consents. (a) Each of the parties hereto consents to
                   --------
Amendment No. 1, dated as of March 30, 2001, to the Sale and Servicing Agreement
for purposes of Section 11.1 of the Sale and Servicing Agreement.

     (b) Each of the parties hereto irrevocably submits to the jurisdiction of
the United States District Court for the Southern District of New York, any
court in the State of New York located in the city and county of New York, and
any appellate court from any thereof, in any action, suit or proceeding brought
against it and related to or in connection with this Agreement, the other Basic
Agreements or the transactions contemplated hereunder or thereunder or for
recognition or enforcement of any judgment and each of the parties hereto
irrevocably and unconditionally agrees that all claims in respect of any such
suit or action or proceeding may be heard or determined in such New York State
court or, to the extent permitted by law, in such federal court. Each of the
parties hereto agrees that a final judgment in any such action, suit or
proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law. To the extent
permitted by applicable law, each of the parties hereby waives and agrees not to
assert by way of motion, as a defense or otherwise in any such suit, action or
proceeding, any claim that it is not personally subject to the jurisdiction of
such courts, that the suit, action or proceeding is brought in an inconvenient
forum, that the venue of the suit, action or proceeding is improper or that this
Agreement or any of the other Basic Agreements or the subject matter hereof or
thereof may not be litigated in or by such courts. The Borrower hereby
irrevocably appoints and designates The Prentice-Hall Corporation System, 500
Central Avenue, Albany, New York 12206-2290, as its true and lawful attorney and
duly authorized agent for acceptance of

                                       53
<PAGE>

service of legal process. The Borrower agrees that service of such process upon
such Person shall constitute personal service of such process upon it. Nothing
contained in this Agreement shall limit or affect the rights of any party hereto
to serve process in any other manner permitted by law or to start legal
proceedings relating to any of the Basic Agreements against the Borrower or its
property in the courts of any jurisdiction.

     Section 9.16  Trial by Jury Waived. Each of the parties hereto waives, to
                   --------------------
the fullest extent permitted by law, any right it may have to a trial by jury in
respect of any litigation arising directly or indirectly out of, under or in
connection with this Agreement, any of the other Basic Agreements or any of the
transactions contemplated hereunder or thereunder. Each of the parties hereto
(a) certifies that no representative, agent or attorney of any other party has
represented, expressly or otherwise, that such other party would not, in the
event of litigation, seek to enforce the foregoing waiver and (b) acknowledges
that it has been induced to enter into this Agreement and the other Basic
Agreements to which it is a party, by among other things, this waiver.

     Section 9.17  Liabilities and Rights of Funding Agents. (a) Notwithstanding
                   ----------------------------------------
any provision of this Agreement or any other Basic Agreement: (i) no Funding
Agent shall have any obligations under this Agreement or any other Basic
Agreement other than those specifically set forth herein and therein, and no
implied obligations of any Funding Agent shall be read into this Agreement or
any other Basic Agreement; and (ii) in no event shall any Funding Agent be
liable under or in connection with this Agreement or any other Basic Agreement
for indirect, special, or consequential losses or damages of any kind, including
lost profits, even if advised of the possibility thereof and regardless of the
form of action by which such losses or damages may be claimed. Neither shall any
Funding Agent nor any of their respective directors, officers, agents or
employees be liable for any action taken or omitted to be taken in good faith by
it or them under or in connection with this Agreement or any other Basic
Agreement, except for its or their own gross negligence or willful misconduct.
Without limiting the foregoing, each Funding Agent (a) may consult with legal
counsel, independent public accountants and other experts selected by it and
shall not be liable for any action taken or omitted to be taken in good faith by
it in accordance with the advice of such counsel, accountants or experts, (b)
shall not be responsible to the Secured Parties, the Sellers, the Servicer or
the Borrower for any statements, warranties or representations made in or in
connection with this Agreement or the other Basic Agreements (except for its
own), (c) shall not be responsible to the Secured Parties, the Sellers, the
Servicer or the Borrower for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of

                                       54
<PAGE>

this Agreement or the other Basic Agreements (except with respect to itself),
(d) shall incur no liability under or in respect of any of the Commercial Paper
or other obligations of the CP Lenders under this Agreement or the other Basic
Agreements and (e) shall incur no liability under or in respect of this
Agreement or the other Basic Agreements by acting upon any notice (including
notice by telephone), consent, certificate or other instrument or writing (which
may be by facsimile) believed by it to be genuine and signed or sent by the
proper party or parties. Notwithstanding anything else herein or in the other
Basic Agreements, it is agreed that where a Funding Agent may be required under
this Agreement or the other Basic Agreements to give notice of any event or
condition or to take any action as a result of the occurrence of any event or
the existence of any condition, such Funding Agent agrees to give such notice or
take such action only to the extent that it has actual knowledge of the
occurrence of such event or the existence of such condition, and shall incur no
liability for any failure to give such notice or take such action in the absence
of such knowledge.

     (b) Each of the Funding Agents hereby represents and warrants to the
Sellers and the Servicer that it is duly authorized to act on behalf of any CP
Lender and APA Bank in its related Lending Group.

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

     (d) All actions taken by the Secured Parties in a Lending Group hereunder
and under the Basic Agreements shall be taken by the related Funding Agent on
behalf of such Secured Party.

     Section 9.18  CP Lenders Generally. (a) Each of the parties hereto hereby
                   --------------------
agrees that it will not institute against, or join with any other Person in

                                       55
<PAGE>

instituting against, a CP Lender any bankruptcy, insolvency, reorganization or
similar proceeding so long as any Commercial Paper or other notes issued by such
Purchaser shall be outstanding or there shall not have elapsed one year plus one
day since the last day on which any such CP Lender's Commercial Paper or other
notes shall have been outstanding.

     (b) Notwithstanding anything to the contrary contained herein, the
obligations of a CP Lender under this Agreement are solely the corporate
obligations of such CP Lender and (i) in the case of obligations of a CP Lender
other than Commercial Paper, shall be payable at such time as funds are actually
received by, or are available to, such CP Lender, in excess of funds necessary
to pay in full all of its outstanding Commercial Paper and, to the extent funds
are not available to pay such obligations, the claims relating thereto shall not
constitute a claim against such CP Lender, but shall continue to accrue. Each
party hereto agrees that the payment of any claim (as defined in Section 101 of
Title 11, United States Code (Bankruptcy)) of any such party against a CP
Lender, shall be subordinated to the payment in full of all of such Lender's
outstanding Commercial Paper.

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

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

                                       56
<PAGE>

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

     Section 9.20  No Recourse. It is expressly understood and agreed by the
                   -----------
parties hereto that (a) this Agreement is executed and delivered by Bankers
Trust (Delaware), not individually or personally but solely as trustee of the
Borrower, in the exercise of the powers and authority conferred and vested in
it, (b) each of the representations, undertakings and agreements herein made on
the part of the Borrower is made and intended not as personal representations,
undertakings and agreements by Bankers Trust (Delaware) but is made and intended
for the purpose of binding only the Borrower, (c) nothing herein contained shall
be construed as creating any liability on Bankers Trust (Delaware), individually
or personally, to perform any covenant either expressed or implied contained
herein, all such liability, if any, being expressly waived by the parties hereto
and by any Person claiming by, through or under the parties hereto and (d) under
no circumstances shall Bankers Trust (Delaware) be personally liable for the
payment of any indebtedness or expenses of the Borrower or be liable for the
breach or failure of any obligation, representation, warranty or covenant made
or undertaken by the Borrower under this Agreement or any other related
documents.

                                       57
<PAGE>

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

                                        AMERICREDIT MANHATTAN TRUST, as
                                         Borrower

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

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

                                        THE CHASE MANHATTAN BANK,
                                         as Administrative Agent on behalf of
                                         the Secured Parties

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

                                        THE CHASE MANHATTAN BANK,
                                         as PARCO Funding Agent

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

                                        PARK AVENUE RECEIVABLES
                                         CORPORATION,
                                         as a Secured Party

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

                                        ING BARING (U.S.) CAPITAL
                                        MARKETS, LLC,
                                         as HLS Funding Agent

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

                                        HOLLAND LIMITED
                                        SECURITIZATION, INC.,
                                         as a Secured Party

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

<PAGE>

                                        EIFFEL FUNDING, LLC,
                                         as a Secured Party

                                        By: Global Securitization Services, LLC,
                                            its Manager

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

                                        CDC FINANCIAL PRODUCTS INC.,
                                         as Eiffel Funding Agent

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

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

                                                                       EXHIBIT A

                                     FORM OF
                              VARIABLE FUNDING NOTE

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

March 30, 2001

     Reference is hereby made to that certain Amended and Restated Security and
Funding Agreement, dated as of March 30, 2001 (as amended, supplemented or
otherwise modified and in effect from time to time, the "Security and Funding
                                                         --------------------
Agreement") by and among AmeriCredit Manhattan Trust, a Delaware business trust,
---------
as borrower (the "Borrower"), The Chase Manhattan Bank, a New York banking
                  --------
corporation, as administrative agent (in such capacity, the "Administrative
                                                             --------------
Agent") and as securities intermediary, and the several funding agents, lenders
-----
and financial institutions party thereto from time to time (collectively, the
"Secured Parties") Capitalized terms used herein and not otherwise defined
 ---------------
herein shall have the meanings assigned to such terms in, or incorporated by
reference into, the Security and Funding Agreement.

     FOR VALUE RECEIVED, the Borrower hereby promises to pay to the order of the
Administrative Agent, for the account of and for the benefit of the Secured
Parties at the principal office of the Administrative Agent at 450 West 33rd
Street, 15th Floor, New York, New York 10001, Attention: Structured Finance
Services, a principal sum equal to SIX HUNDRED TWENTY FIVE MILLION

                                       A-1
<PAGE>

DOLLARS ($625,000,000), in lawful money of the United States of America and in
immediately available funds.

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

     Carrying Costs in respect of the outstanding principal amount of this Note
shall accrue at the rate or rates from time to time in effect pursuant to the
Security and Funding Agreement and payable to the Administrative Agent for the
benefit of the Secured Parties of such Carrying Costs on the dates and in the
manner provided for in the Sale and Servicing Agreement and the Security and
Funding Agreement; provided that, in all events, Carrying Costs constituting
                   --------
Accrued Discount shall be payable by the Borrower on any day on which
outstanding Commercial Paper issued by a CP Lender to fund its Net Investment
matures. Carrying Costs due and payable hereunder shall be payable in accordance
with the priorities set forth in Section 6.8 of the Sale and Servicing
Agreement.

     Principal in an amount equal to the Targeted Monthly Principal Payment, if
any, will be due and payable on each Distribution Date in accordance with the
priorities set forth in Section 6.8 of the Sale and Servicing Agreement. Unless
otherwise due and payable on an earlier date in accordance with the terms of the
Basic Agreements, the entire outstanding principal amount of this Note and
accrued interest thereon will be due and payable on the Distribution Date
occurring in the calendar month seventy-eight (78) months following the
Commitment Expiry Date; provided however that the principal amount of any same
                        -------- -------
day Funding shall be due no later than the fifth Business Day immediately
following such same day Funding date.

     Following the occurrence of a Termination Event, the Administrative Agent
may, with the consent of the Required Lending Groups, or shall, at the direction
of the Required Lending Groups, declare all amounts due hereunder to be
immediately due and payable and exercise all remedies available to it pursuant
to the

                                       A-2
<PAGE>

Basic Agreements and applicable law; provided that, upon the occurrence of an
                                     --------
Insolvency Event with respect to the Borrower, all such amounts immediately
shall become due and owing automatically without the need for presentment,
demand, protest or other notice of any kind, all of which are hereby waived by
the Borrower.

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

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

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

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

                                       A-3
<PAGE>

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

                                        AMERICREDIT MANHATTAN TRUST

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

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

                                       A-4<PAGE>

                                                                   Exhibit 10.30

                               AMENDMENT NO. 2 TO
                          SALE AND SERVICING AGREEMENT

     AMENDMENT NO. 2 (this "Amendment"), dated as of April 27, 2001, to the SALE
                            ---------
AND SERVICING AGREEMENT, dated as of September 14, 2000, by and among
AMERICREDIT MANHATTAN TRUST, a Delaware business trust (the "Borrower"),
                                                             --------
AMERICREDIT FINANCIAL SERVICES, INC., a Delaware corporation ("AFS"), as a
                                                               ---
seller and as servicer (in such capacities, the "Primary Seller" and the
                                                 --------------
"Servicer", respectively), AMERICREDIT FUNDING CORP. V, a Delaware corporation,
 --------
as a seller (the "Secondary Seller," and, together with the Primary Seller, the
                  ----------------
"Sellers," and each, a "Seller"), and THE CHASE MANHATTAN BANK, a New York
 --------               ------
banking corporation ("Chase"), as backup servicer and as administrative agent
                      -----
(in such capacities, the "Backup Servicer" and the "Administrative Agent,"
                          ---------------           ---------------------
respectively).

                                   WITNESSETH:
                                   -----------

     WHEREAS, the Borrower, the Sellers, the Servicer, the Backup Servicer and
the Administrative Agent have entered into a Sale and Servicing Agreement, dated
as of September 14, 2000, as amended by Amendment No. 1 thereto dated as of
March 30, 2001 (the "Agreement");
                     ---------

     WHEREAS, the parties hereto wish to amend the Agreement as hereinafter
provided.

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

     SECTION 1. Defined Terms. Unless otherwise defined herein, the terms used
                -------------
herein shall have the meanings assigned to such terms in, or incorporated by
reference into, the Agreement. For all purposes of this Amendment, "Effective
                                                                    ---------
Date" shall mean April 27, 2001.
----
<PAGE>

     SECTION 2. Amendments to Agreement. The Agreement is hereby amended,
                -----------------------
effective on the Effective Date, as follows:

     (a) Annex A to the Agreement shall be deleted in its entirety and shall be
replaced with Annex A attached hereto, which Annex A shall be incorporated
herein.

     (b) Section 6.8(d) of the Agreement shall be amended by deleting the term
"Article IV" in the sixth line thereof and by replacing it with "Articles VII
and VIII".

     SECTION 3. Execution in Counterparts. This Amendment may be executed in any
                -------------------------
number of counterparts and by different parties hereto on separate counterparts,
each of which counterparts, when so executed and delivered, shall be deemed to
be an original and all of which counterparts, taken together, shall constitute
but one and the same Amendment.

     SECTION 4. Consents; Binding Effect. The execution and delivery by the
                ------------------------
parties hereto of this Amendment shall constitute the written consent of each of
them to this Amendment. This Amendment shall be binding upon, and inure to the
benefit of, the parties hereto and their respective successors and assigns.

     SECTION 5. Governing Law. This Amendment shall be governed by, and
                -------------
construed in accordance with, the laws of the State of New York.

     SECTION 6. Severability of Provisions. Any provision of this Amendment
                --------------------------
which 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 or
affecting the validity or enforceability of such provision in any other
jurisdiction.

     SECTION 7. Captions. The captions in this Amendment are for convenience of
                --------
reference only and shall not define or limit any of the terms or provisions
hereof.

     SECTION 8. Agreement to Remain in Full Force and Effect. Except as amended
                --------------------------------------------
hereby, the Agreement shall remain in full force and effect and is hereby
ratified, adopted and confirmed in all respects. This Amendment shall be deemed
to be an amendment to the Agreement. All references in the Agreement to "this
Agreement", "hereunder", "hereof", "herein", or words of like import, and all
references to

                                        2
<PAGE>

the Agreement in any other agreement or document shall hereafter be deemed to
refer to the Agreement as amended hereby.

                                       3
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 2 to
the Sale and Servicing Agreement to be executed as of the date and year first
above written.

                                        AMERICREDIT MANHATTAN TRUST,
                                         as Borrower

                                        By: Bankers Trust (Delaware), solely as
                                        Trustee of the AmeriCredit Manhattan
                                        Trust

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

                                        AMERICREDIT FUNDING CORP. V, as Seller

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

                                        AMERICREDIT FINANCIAL SERVICES, INC.,
                                         as Servicer and Primary Seller

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

                                        THE CHASE MANHATTAN BANK, not in its
                                         individual capacity, but solely as
                                         Backup Servicer

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

                                        4
<PAGE>

                                        THE CHASE MANHATTAN BANK, as
                                         Administrative Agent on behalf of the
                                         Secured Parties

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

                                       5
<PAGE>

                                                                         Annex A
                                                                         -------

                             SCHEDULE OF DEFINITIONS
          ------------------------------------------

                                 (See attached)

                                       6
<PAGE>

                                     ANNEX A
                                     -------

     This Annex A is referred to and incorporated in the Sale and Servicing
Agreement, dated as of September 14, 2000, as amended by Amendment No. 1
thereto, dated as of March 30, 2001, and Amendment No. 2 thereto, dated as of
April 27, 2001, by and among AMERICREDIT MANHATTAN TRUST, a Delaware business
trust (the "Borrower"), AMERICREDIT FINANCIAL SERVICES, INC., a Delaware
            --------
corporation ("AFS"), as seller and as servicer (in such capacities, the "Primary
              ---                                                        -------
Seller" and "Servicer", respectively), AmeriCredit Funding Corp. V, a Delaware
------       --------
corporation, as seller (in such capacity, the "Secondary Seller" and, together
                                               ----------------
with the Primary Seller, the "Sellers"), and THE CHASE MANHATTAN BANK, a New
                              -------
York banking corporation ("Chase"), as backup servicer and as administrative
                           -----
agent (in such capacities, the "Backup Servicer" and the "Administrative Agent",
                                ---------------           --------------------
respectively).

                                I. DEFINED TERMS

     Terms defined herein are used with such assigned meanings in the Sale and
Servicing Agreement and in the Security and Funding Agreement and each of the
other Basic Agreements (all such terms as defined below). The following words
and phrases, unless the context otherwise requires, have the following meanings:

     "ABR Funding" means a Funding as to which interest with respect thereto
      -----------
accrues at the Alternate Base Rate.

     "ABS Account" means the account designated as such, established and
      -----------
maintained pursuant to Section 6.1 of the Sale and Servicing Agreement.

     "ABS Documents" means with respect to any Asset Backed Security, the
      -------------
agreements constituting the material documentation relating to the issuance of,
and setting forth the terms and conditions of and the rights of the holders of,
such Asset Backed Security including any related pooling and servicing
agreement, supplement, indenture and certificate or note purchase agreements, as
amended.
<PAGE>

     "ABS Funding Sub Limit" means an amount to be determined by the Funding
      ---------------------
Agents and all the Lending Groups and the Borrower.

     "ABS Purchase Price" means, on any ABS Sale Date, the purchase price for
      ------------------
the Asset Backed Securities sold on such date, which purchase price shall be the
price that would be obtained in an arms-length transaction between a seller
under no compulsion to sell and a buyer under no compulsion to buy, as set forth
in the ABS Sale Notice and the related ABS Sale Agreement.

     "ABS Repurchase Obligation" means, as the context may require, the
      -------------------------
obligation of the relevant Seller pursuant to Section 4A.2 of the Sale and
Servicing Agreement to repurchase an Asset Backed Security.

     "ABS Repurchase Obligation Amount" means, with respect to any Asset Backed
      --------------------------------
Security subject to an ABS Repurchase Obligation, the Principal Balance on such
Asset Backed Security, together with accrued and unpaid interest thereon and any
other amounts due, after giving effect to the receipt of any moneys collected
(from whatever source), if any.

     "ABS Sale Agreement" means an agreement among the Borrower, the Primary
      ------------------
Seller and the Servicer, with respect to the Asset Backed Securities to be sold
to the Borrower on an ABS Sale Date, substantially in the form of Exhibit A-2 to
the Sale and Servicing Agreement, as the same may be amended, supplemented or
otherwise modified and in effect from time to time.

     "ABS Sale Date" means any date occurring not more frequently than twice a
      -------------
week during the Facility Term on which Asset Backed Securities are to be sold to
the Borrower pursuant to the Sale and Servicing Agreement, and an ABS Sale
Agreement is executed and delivered to the Borrower.

     "ABS Sale Notice" means, with respect to any sale of Asset Backed
      ---------------
Securities to the Borrower on any ABS Sale Date, a notice substantially in the
form of Exhibit C-2 to the Sale and Servicing Agreement, stating the Primary
Seller's intention to sell Asset Backed Securities to the Borrower and
designating the related ABS Sale Date and the principal amount of Asset Backed
Securities to be sold on such ABS Sale Date.

     "Account Control Agreement" means an account control agreement, dated as of
      -------------------------
September 14, 2000, by and among the Borrower, the Administrative

                                       2
<PAGE>

Agent and the Securities Intermediary, as the same may be amended, supplemented
or otherwise modified and in effect from time to time.

     "Accountants' Report" means the report of a firm of nationally recognized
      -------------------
independent accountants described in Section 5.11 of the Sale and Servicing
Agreement.

     "Accounting Date" means, with respect to a Distribution Date, the last day
      ---------------
of the Collection Period immediately preceding such Distribution Date.

     "Accrued Discount" means, for any Collection Period, the aggregate Discount
      ----------------
of all Commercial Paper issued by the CP Lenders to fund the Aggregate Net
Investment outstanding at any time during such Collection Period which has
accrued from the first day through the last day of such Collection Period,
whether or not such Commercial Paper is issued or matures during such Collection
Period. For purposes of the immediately preceding sentence, the portion of the
aggregate Discount of related Commercial Paper accrued during a Collection
Period in which such Commercial Paper has a stated maturity date on a day other
than the last day of such Collection Period shall be based on the actual number
of days elapsed during which such related Commercial Paper was outstanding.

     "Accrued Interest" means, for any Collection Period, the aggregate amount
      ----------------
of interest due and owing to the APA Banks pursuant to Section 7.4 of the
Security and Funding Agreement with respect to all Fundings outstanding at any
time during such Collection Period, which amount has accrued from the first day
through the last day of such Collection Period, whether or not such Fundings
have been repaid (in whole or in part) during such Collection Period. For
purposes of the immediately preceding sentence, the portion of the aggregate
amount of interest accrued during a Collection Period in which any such Fundings
are paid in full on a day other than the last day of such Collection Period
shall be based on the actual number of days elapsed during which all such
Fundings were outstanding.

     "Adjusted Collections" has the meaning set forth in Section 7.1(f)(ii)(4)
      --------------------
of the Security and Funding Agreement.

     "Administrative Agent" means The Chase Manhattan Bank, a New York banking
      --------------------
corporation, and its permitted successors and assigns.

     "Advance" means, in the aggregate, each loan made by the Secured Parties to
      -------
the Borrower pursuant to the Security and Funding Agreement.

                                        3
<PAGE>

     "Advance Amount" means, in determining the amount of the Advance to be made
      --------------
to the Borrower on any Funding Date, an amount equal to the sum of: (i)
[X(PB+NPB)] (as such equation relates to Receivables) - AVB (as such calculation
applies to Receivables) plus (ii) [X(PB+NPB)] (as such equation relates to Asset
Backed Securities) - AVB (as such calculation applies to Asset Backed
Securities)

     X =       The Advance Percentage.

     PB =      The Pool Balance as it relates to Receivables or Asset Backed
               Securities, as applicable, as of the close of business on the
               Business Day immediately preceding the date of the Servicer's
               Receivables Sale Date Certificate or the Servicer's ABS Sale Date
               Certificate.

     NPB =     The Principal Balance of the Receivables and/or the Asset Backed
               Securities, as the case may be, to be purchased by the Borrower
               on such date.

     AVB =     The VFN Balance as of the close of business on the Business Day
               immediately preceding the date of the Servicer's Receivables Sale
               Date Certificate or the Servicer's ABS Sale Date Certificate, as
               appropriate, increased by the amount of any accrued and unpaid
               interest or discount, as applicable, on all outstanding Fundings,
               together with all accrued and unpaid fees and other costs and
               expenses due and owing to the Lending Groups, and reduced by the
               following amount: the product of (i) the aggregate amount of the
               Collections in the Collection Account as of the close of business
               on the Business Day immediately preceding the date of the
               Servicer's Receivables Sale Date Certificate or the Servicer's
               ABS Sale Date Certificate, as appropriate; and (ii) the
               applicable Advance Percentage.

     "Advance Percentage" has the meaning set forth in Section 7.1(c) of the
      ------------------
Security and Funding Agreement.

     "Adverse Claim" means any claim of ownership or any Lien, title retention,
      -------------
trust or other charge or encumbrance, or other type of preferential

                                       4
<PAGE>

arrangement having the effect or purpose of creating a Lien, other than the
security interest created under the Security and Funding Agreement.

     "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
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.

     "AFS" means AmeriCredit Financial Services, Inc., a Delaware corporation,
      ---
and its successors and assigns.

     "Aggregate Commitment" means, at any time, the sum of the Commitments of
      --------------------
all APA Banks of all Lending Groups then in effect.

     "Aggregate Net Investment" means, at any time, the sum of all Net
      ------------------------
Investments of all Lending Groups.

     "Alternate Base Rate" means the PARCO Alternate Base Rate, the HLS
      -------------------
Alternate Base Rate or the Eiffel Alternate Base Rate.

     "Amount Financed" means, with respect to a Receivable, the aggregate amount
      ---------------
advanced under such Receivable toward the purchase price or refinancing of the
Financed Vehicle and any related costs, including amounts advanced in respect of
accessories, insurance premiums, service and warranty contracts, other items
customarily financed as part of retail automobile installment sale contracts or
promissory notes, and related costs.

     "Annual Percentage Rate" or "APR" of a Receivable means the annual
      ----------------------
percentage rate of finance charges or service charges, as stated in the related
Contract.

     "APA Bank" means (i) any Person (other than HLS and Eiffel) executing an
      --------
Asset Purchase Agreement as an "APA Bank" thereunder, (ii) with respect to HLS
and Eiffel, each of HLS and Eiffel, (iii) with respect to Victory, each "Victory
Liquidity Bank" and (iv) in respect of such provisions contained in the Sale and
Servicing Agreement and Security and Funding Agreement as shall be designated by
HLS and Eiffel, such HLS Liquidity Banks and Eiffel Liquidity Banks

                                       5
<PAGE>

as shall be designated by HLS and Eiffel, respectively, and in any such case,
its permitted successors and assigns in such capacity.

     "Applicable Rate" means, with respect to any date for which such rate is
      ---------------
being determined, the weighted average of the rates of interest applicable to
the VFN Balance on such date pursuant to the Security and Funding Agreement.

     "Asset Backed Securities" means notes issued in connection with a term
      -----------------------
asset backed securitization transaction, which notes (i) are secured by assets
originated or purchased by AFS, (ii) provide for monthly payments of interest,
(iii) whose all in yield (after giving effect to any discount or reserve) shall
be at least equal to the Eurodollar Rate, and (iv)(a) have a rating of "A-1+" by
S&P and "P-1" by Moody's at the time of acquisition by the Borrower and are
eligible for purchase by money market funds pursuant to Rule 2a-7 under the
Investment Company Act or 1940, as amended, or (b) are variable percentage term
notes which (x) have an expected maturity of one year or less and a final
maturity of no more than three years from their date of issuance, (y) have
timely payments of interest and ultimate payments of principal on or prior to
the date such principal is required to be fully paid, fully insured by a
monoline insurer acceptable to the Funding Agents, (z) are rated no lower than
"AAA" by S&P and "Aaa" by Moody's at the time such Asset Backed Security is sold
to the Borrower.

     "Asset Purchase Agreement" means the PARCO Asset Purchase Agreement, the
      ------------------------
HLS Liquidity Loan Agreement, the Eiffel Liquidity Asset Purchase Agreement or
the Victory Liquidity Facility.

     "Authorized Officer" means, (i) with respect to a Funding Agent or any APA
      ------------------
Bank, any Vice President or Trust Officer thereof, (ii) with respect to a CP
Lender, the Servicer or the Sellers, the President, any Vice Chairman, the Chief
Financial Officer, any Vice President or the Treasurer thereof and (iii) with
respect to the Borrower, any Vice President or Trust Officer of the Trustee.

     "Available Funds" means, with respect to any Determination Date, the sum
      ---------------
of: (i) the Collected Funds for such Determination Date, (ii) all Repurchase
Obligation Amounts and all ABS Repurchase Obligation Amounts deposited in the
Collection Account with respect to the related Collection Period; (iii)
Investment Earnings with respect to the Pledged Accounts during the related
Collection Period; and (iv) payments by Hedge Counterparties during the related
Collection Period (for the avoidance of doubt, "Available Funds" does not
include funds allocated to the Collection Account Reserve).

                                        6
<PAGE>

     "Available Funds Deficiency" has the meaning assigned in Section 6.6 of the
      --------------------------
Sale and Servicing Agreement.

     "Backup Servicer" means The Chase Manhattan Bank, a New York banking
      ---------------
corporation, not in its individual capacity but solely in such capacity as
Backup Servicer, and its successors and assigns.

     "Base Servicing Fee" means, with respect to any Collection Period, the fee
      ------------------
payable to the Servicer for services rendered during such Collection Period,
which shall be equal to one-twelfth of the Servicing Fee Rate multiplied by the
average daily Pool Balance during such Collection Period.

     "Basic Agreements" means the Sale and Servicing Agreement, the Security and
      ----------------
Funding Agreement, each Lockbox Agreement, the VFN, each Hedge Contract, the
Account Control Agreement, each Receivables Sale Agreement, each ABS Sale
Agreement, the Fee Letter and each Asset Purchase Agreement (and fee letter
related to such Asset Purchase Agreement).

     "Borrower" means AmeriCredit Manhattan Trust, a Delaware business trust,
      --------
and its successors and permitted assigns.

     "Business Day" means any day excluding Saturday, Sunday and any day on
      ------------
which banks in The City of New York or Fort Worth, Texas (or, if different, such
other jurisdictions in which any successor Servicer, the Back-up Servicer or any
Lockbox Bank is located) are authorized or required by law to close, and, when
used with respect to the determination of any Eurodollar Rate or any notice with
respect thereto, any such day which is also a day for trading by and between
banks in United States dollar deposits in the London interbank market.

     "Calendar Quarter" means the three-month period ending on the last day of
      ----------------
March, June, September or December.

     "Capped Amount" means, with respect to Accrued Discount and Accrued
      -------------
Interest on any Distribution Date and relating to any Collection Period, the
product of (i) the sum of (A) the strike price applicable to the Hedge Contracts
during such Collection Period plus (B) if positive, the difference between the
                              ----
reference rate specified in such Hedge Contracts as of the first day of such
Collection Period and the strike price plus (C) 1.25% multiplied by (ii) the
                                       ----           -------------
average daily amount of the Aggregate Net Investment during such Collection
Period.

                                        7
<PAGE>

     "Carrying Costs" means, for any Collection Period with respect to a Lending
      --------------
Group, the sum of (i) the aggregate dollar amount of such CP Lender's
obligations for such Collection Period determined on an accrual basis in
accordance with GAAP consistently applied (a) to pay Accrued Discount with
respect to such Collection Period, (b) without duplication, to pay all dealer
fees due and owing with respect to Commercial Paper issued by such CP Lender to
fund its Net Investment during such Collection Period, (c) to pay any past due
Discount (together with interest thereon at the Late Payment Rate) with respect
to prior Collection Periods, and (d) to pay the costs of such CP Lender with
respect to the operation of the Yield Protection Provision, (ii) the sum of the
aggregate dollar amount of the related APA Banks' interest due and owing for
such Collection Period determined on an accrual basis in accordance with GAAP
consistently applied in respect of (a) Accrued Interest with respect to such
Collection Period, (b) any past due interest due and owing to such APA Banks
specified in Section 7.4 of the Security and Funding Agreement (together with
interest thereon at the Late Payment Rate) with respect to prior Collection
Periods and (c) to pay the costs of the related APA Banks with respect to the
operation of the Yield Protection Provision, (iii) the fees specified in the
related Lending Group's Fee Letter that accrued from the first day through the
last day of such Collection Period, whether or not such amounts are payable
during such Collection Period and (iv) other costs and expenses due and owing to
the related CP Lender, the related Funding Agent and the related APA Banks
pursuant to the Security and Funding Agreement and the other Basic Agreements
that are accrued and unpaid during such Collection Period, together with any
unpaid costs and expenses due and owing to the related CP Lender, the related
Funding Agent and the related APA Banks from prior Collection Periods.

     "Certificated Security" has the meaning specified in Section 8-102 of the
      ---------------------
New York UCC.

     "Change of Control" means a change resulting when any Unrelated Person or
      -----------------
any Unrelated Persons, acting together, that would constitute a Group together
with any Affiliates or Related Persons thereof (in each case also constituting
Unrelated Persons) shall at any time either (i) Beneficially Own more than 30%
of the aggregate voting power of all classes of voting stock of AmeriCredit
Corp. or (ii) succeed in having sufficient of its or their nominees elected to
the Board of Directors of AmeriCredit Corp. such that such nominees, when added
to any existing director remaining on the Board of Directors of AmeriCredit
Corp. after such election who is an Affiliate or Related Person of such Person
or Group, shall constitute a majority of the Board of Directors of AmeriCredit
Corp. As used herein, (a) "Beneficially Own" shall mean "beneficially own" as
                           ----------------
defined in Rule 13d-3 of the Exchange Act, or any

                                        8
<PAGE>

successor provision thereto; provided, however, that, for purposes of this
                             --------  -------
definition, a Person shall not be deemed to Beneficially Own securities tendered
pursuant to a tender or exchange offer made by or on behalf of such Person or
any of such Person's Affiliates until such tendered securities are accepted for
purchase or exchange; (b) "Group" shall mean a "group" for purposes of Section
                           -----
13(d) of the Exchange Act; (c) "Unrelated Person" shall mean at any time any
                                ----------------
Person other than AmeriCredit Corp. or any of its Subsidiaries and other than
any trust for any employee benefit plan of AmeriCredit Corp. or any of its
Subsidiaries; and (d) "Related Person" of any Person shall mean any other Person
                       --------------
owning (1) 5% or more of the outstanding common stock of such Person or (2) 5%
or more of the voting stock of such Person.

     "Collateral" has the meaning assigned to such term in Section 2.1(a) of the
      ----------
Security and Funding Agreement.

     "Collateral Insurance" has the meaning set forth in Section 5.4(a) of the
      --------------------
Sale and Servicing Agreement.

     "Collected Funds" means, with respect to any Determination Date, the amount
      ---------------
of funds in the Collection Account representing collections on the Receivables
and Asset Backed Securities during the related Collection Period, including all
Net Liquidation Proceeds collected during the related Collection Period (but
excluding any Repurchase Obligation Amounts and ABS Repurchase Obligation
Amounts).

     "Collection Account" means the account designated as such, established and
      ------------------
maintained pursuant to Section 6.1 of the Sale and Servicing Agreement.

     "Collection Account Reserve" means the amount from time to time allocated
      --------------------------
to the Collection Account Reserve on the books and records of the Administrative
Agent, determined as follows: (i) the Collection Account Reserve Minimum; plus
                                                                          ----
(ii) each allocation to the Collection Account Reserve pursuant to Section
6.8(a)(x) of the Sale and Servicing Agreement; plus (iii) each amount deposited
                                               ----
in the Collection Account as Collection Account Reserve Shortfall Amounts; minus
                                                                           -----
(iv) each release of funds from the Collection Account Reserve pursuant to
Section 6.2(b) of the Sale and Servicing Agreement; and minus (v) each
                                                        -----
application of funds from the Collection Account Reserve pursuant to Section 6.6
of the Sale and Servicing Agreement.

                                        9
<PAGE>

     "Collection Account Reserve Minimum" means the greater of (i) $500,000 or
      ----------------------------------
(y) 1% of the Pool Balance.

     "Collection Account Reserve Shortfall Amount" has the meaning assigned in
      -------------------------------------------
Section 6.2(a) of the Sale and Servicing Agreement.

     "Collection Period" means, with respect to each Distribution Date, the
      -----------------
preceding calendar month. Any amount stated "as of the close of business of the
last day of a Collection Period" shall give effect to (i) all applications of
collections, and (ii) all distributions as determined as of the end of the day
on such last day.

     "Collection Records" means all manually prepared or computer generated
      ------------------
records relating to collection efforts or payment histories with respect to the
Receivables.

     "Collections" means collections on the Receivables and the Asset Backed
      -----------
Securities in respect of principal and interest (excluding funds allocated to
the Collection Account Reserve), the Investment Earnings and payments by Hedge
Counterparties.

     "Commercial Paper" means the short-term promissory notes of a CP Lender
      ----------------
issued by such CP Lender in the commercial paper market.

     "Commitment" means, with respect to any APA Bank, the amount set forth as
      ----------
such APA Bank's Commitment in the related Asset Purchase Agreement, as such
amount may be adjusted pursuant to the provisions thereof.

     "Commitment Expiry Date" means the earliest to occur of (i) the date on
      ----------------------
which all amounts due and owing to the Secured Parties pursuant to the Security
and Funding Agreement and the other Basic Agreements have been indefeasibly paid
in full, (ii) with respect to Fundings made by the APA Banks pursuant to Section
7.1 of the Security and Funding Agreement, the occurrence of a Termination Event
and termination of the Commitments pursuant to Section 6.1(a) of the Security
and Funding Agreement, (iii) in the case of HLS, Victory or Eiffel, the
inability of HLS, Victory or Eiffel, as applicable, to receive advances from the
HLS Liquidity Banks, the Victory Liquidity Banks or the Eiffel Liquidity Banks,
as applicable, and (iv) September 11, 2001 (as may be extended for an additional
364 days from time to time in writing at the option of each of the Secured
Parties, the Administrative Agent and the Funding Agents).

                                       10
<PAGE>

     "Computer Tape" means the computer tapes or other electronic media
      -------------
furnished by the relevant Seller to the Borrower and its assigns describing
certain characteristics of the Receivables sold to the Borrower pursuant to the
Sale and Servicing Agreement, in each case as of the Relevant Cutoff Date.

     "Contract" means a motor vehicle retail installment sale contract or
      --------
installment loan contract executed by an Obligor in respect of a Financed
Vehicle, as the same may be amended, supplemented or otherwise modified and in
effect from time to time.

     "Conversion/Continuation Notice" has the meaning specified in Section 7.7
      ------------------------------
of the Security and Funding Agreement.

     "Conveyed Assets" has the meaning set forth in Section 2.2 of the Sale and
      ---------------
Servicing Agreement.

     "Conveyed Property" has the meaning set forth in Section 2.2 of the Sale
      -----------------
and Servicing Agreement.

     "Conveyed Securities" has the meaning set forth in Section 2.2 of the Sale
      -------------------
and Servicing Agreement.

     "Corporate Trust Office" means the office of the Trustee, as provided in
      ----------------------
the Trust Agreement.

     "CP Funding" means a Funding made by a CP Lender and funded through the
      ----------
issuance of Commercial Paper.

     "CP Funding Period" means (i) with respect to a CP Funding related to
      -----------------
PARCO, a calendar month and (ii) with respect to a CP Funding related to HLS or
Eiffel, a period of days not to exceed ninety (90) days commencing on a Business
Day selected by such CP Lender (provided that if any such CP Funding Period
                                --------
would end on a day which is not a Business Day, such CP Funding Period shall end
on the next succeeding Business Day).

     "CP Lender" means PARCO, HLS, Victory or Eiffel.
      ---------
     "CP Rate" means, with respect to any issuance of Commercial Paper by a CP
      -------
Lender to fund, in whole or in part, its Net Investment (and, at the election of
the CP Lender, other investments or loans by the CP Lender), the rate equivalent
to

                                       11
<PAGE>

the rate (or if more than one rate, the weighted average of the rates) at which
Commercial Paper (in the case of HLS and Eiffel having a term equal to the CP
Funding Period) may be sold by any placement agent or commercial paper dealer
selected by such CP Lender, including any dealer fees and commissions; provided,
                                                                       --------
however, that if the rate (or rates) as agreed between any such agent or dealer
-------
and such CP Lender is a discount rate, then the rate (or if more than one rate,
the weighted average of the rates) resulting from such CP Lender's converting
such discount rate (or rates) to an interest-bearing equivalent rate per annum.

     "Cram Down Loss" means, with respect to a Receivable, if a court of
      --------------
appropriate jurisdiction in an insolvency proceeding shall have issued an order
reducing the amount owed on a Receivable or otherwise modifying or restructuring
the scheduled payments to be made on a Receivable, an amount equal to (i) the
excess of the principal balance of such Receivable immediately prior to such
order over the principal balance of such Receivable as so reduced and/or (ii) if
such court shall have issued an order reducing the effective rate of interest on
such Receivable, the excess of the principal balance of such Receivable
immediately prior to such order over the net present value (using as the
discount rate the higher of the APR on such Receivable or the rate of interest,
if any, specified by the court in such order) of the scheduled payments as so
modified or restructured. A "Cram Down Loss" shall be deemed to have occurred on
the date of issuance of such order.

     "Credit and Servicing Procedures" means AFS's written credit, servicing and
      -------------------------------
collection policies and procedures delivered to the Administrative Agent and the
Funding Agents prior to the Effective Date, as such Procedures may be modified
or supplemented from time to time in accordance with the terms of the Sale and
Servicing Agreement.

     "Credit Score" means the credit score for each Obligor, determined in
      ------------
accordance with the Credit and Servicing Procedures.

     "Dealer" means a dealer that sold a Financed Vehicle and that originated
      ------
and sold the related Receivable to the Primary Seller under a Dealer Agreement
or pursuant to a Dealer Assignment.

     "Dealer Agreement" means any agreement between a Dealer and the Primary
      ----------------
Seller relating to the acquisition of Receivables from a Dealer by the Primary
Seller, as the same may be amended, supplemented or otherwise modified and in
effect.

                                       12
<PAGE>

     "Dealer Assignment" means, with respect to a Receivable, the executed
      -----------------
assignment executed by a Dealer conveying such Receivable to the Primary Seller,
as the same may be amended, supplemented or otherwise modified and in effect.

     "Defaulted Receivable" means, on each Receivables Sale Date (in each case,
      --------------------
determined as of the close of the Business Day preceding delivery of the
Servicer's Receivables Sale Date Certificate) and any Reference Date, a
Receivable as to which: (i) in accordance with the Credit and Servicing
Procedures, the Servicer has determined that eventual payment in full is
unlikely, or (ii) the related Financed Vehicle has been repossessed, or (iii) 5%
or more of any payment is over 120 days delinquent; provided, however, that for
                                                    --------  -------
the purpose of calculating the Delinquency Ratio, Defaulted Receivable shall
mean a Receivable as to which 5% or more of any payment is over 90 days
delinquent or which has been charged off.

     "Delinquency Ratio" means for any Reference Date, the ratio, (i) the
      -----------------
numerator of which shall be the sum of all Defaulted Receivables, Delinquent
Receivables and Repurchased Receivables (without duplication) and (ii) the
denominator of which shall be the Principal Balance of all Receivables
determined as a rolling average for the four months immediately preceding such
Reference Date.

     "Delinquent Receivable" means, on each Receivables Sale Date (in each case,
      ---------------------
determined as of the close of the Business Day preceding delivery of the
Servicer's Receivables Sale Date Certificate) and any Reference Date, a
Receivable with respect to which 5% or more of any Scheduled Payment is over 30
days past due and which is not a Defaulted Receivable; provided, however, that
                                                       --------  -------
for the purpose of calculating the Delinquency Ratio, Delinquent Receivable
shall mean a Receivable as to which 5% or more of any Scheduled Payment is over
60 days past due and which is not a Defaulted Receivable (as defined in the
proviso of the definition thereof).

     "Deliver" or "Delivery" means, when used with respect to the Pledged
      -------      --------
Account Property:

          (a) with respect to such of the Pledged Account Property as
     constitutes an "instrument" within the meaning of Article 9 of the New York
     UCC, either (1) delivery of such instrument to the Administrative Agent
     indorsed to the Administrative Agent or indorsed in blank by an effective
     indorsement or (2) delivery of such instrument to a Securities Intermediary
     indorsed to the Securities Intermediary or indorsed in blank by an
     effective

                                       13
<PAGE>

     indorsement and causing the Securities Intermediary to create a Securities
     Entitlement with respect thereto in one of the Pledged Accounts;

          (b) with respect to such of the Pledged Account Property as
     constitutes a "certificated security in bearer form" within the meaning of
     Article 8 of the New York UCC, (i) the Administrative Agent acquires
     possession of the security certificate, (ii) another person, other than a
     securities intermediary, either acquires possession of the security
     certificate on behalf of the Administrative Agent or, having previously
     acquired possession of the certificate, acknowledges that it holds for the
     Administrative Agent, or (iii) a securities intermediary acting on behalf
     of the Administrative Agent acquires possession of the security
     certificate, and the Securities Intermediary creates a Securities
     Entitlement in respect thereof in one of the Pledged Accounts;

          (c) with respect to such of the Pledged Account Property as
     constitutes a "certificated security in registered form" within the meaning
     of Article 8 of the New York UCC, both (A) (i) the Administrative Agent
     acquires possession of the security certificate indorsed to the
     Administrative Agent or indorsed in blank by an effective indorsement, (ii)
     another person, other than a securities intermediary, either acquires
     possession of the security certificate on behalf of the Administrative
     Agent or, having previously acquired possession of the certificate,
     acknowledges that it holds for the Administrative Agent, or (iii) a
     securities intermediary acting on behalf of the Administrative Agent
     acquires possession of the security certificate, only if the certificate is
     in registered form and has been specially indorsed to the Securities
     Intermediary or indorsed in blank by an effective indorsement;

          (d) with respect to such of the Pledged Account Property as
     constitutes an "uncertificated security" within the meaning of Article 8 of
     the New York UCC, (i) the issuer registers the Administrative Agent as the
     registered owner, upon original issue or registration of transfer or (ii)
     another person, other than a securities intermediary, either becomes the
     registered owner of the uncertificated security on behalf of the
     Administrative Agent or, having previously become the registered owner,
     acknowledges that it holds for the Administrative Agent or (iii) the
     Securities Intermediary becomes the registered owner and creates a
     Securities Entitlement with respect thereto in a Pledged Account.

                                       14
<PAGE>

     "Determination Date" means, with respect to any Collection Period, the
      ------------------
earlier of (i) the 2nd Business Day preceding the related Distribution Date, and
(ii) the 8th day of the calendar month following such Collection Period, or if
such 8th day is not a Business Day, the next succeeding Business Day.

     "Discount" means, with respect to any Commercial Paper, the interest or
      --------
discount component thereof.

     "Distribution Date" means, with respect to each Collection Period, the
      -----------------
tenth day of the following calendar month, or if such day is not a Business Day,
the immediately following Business Day, commencing on October 10, 2000.

     "Effective Date" has the meaning specified in Section 7.1(g) of the
      --------------
Security and Funding Agreement.

     "Eiffel" means Eiffel Funding, LLC, a Delaware limited liability company.
      ------

     "Eiffel Alternate Base Rate" means, for any day, a rate per annum equal to
      --------------------------
the greater of (a) the Eiffel Prime Rate in effect on such day and (b) the
Federal Funds Effective Rate in effect on such day plus 0.50%. Any change in the
Eiffel Alternate Base Rate due to a change in the Eiffel Prime Rate or the
Federal Funds Effective Rate shall be effective from and including the effective
date of such change in the Eiffel Prime Rate or the Federal Funds Effective
Rate, respectively.

     "Eiffel Eurodollar Rate" means, with respect to any Tranche for which the
      ----------------------
applicable rate is to be determined by reference to LIBOR, a rate which is 1.25%
in excess of a rate per annum equal to the sum (rounded upwards, if necessary,
to the next higher 1/100 of 1%) of (A) the rate obtained by dividing (i) Eiffel
LIBOR by (ii) a percentage equal to 100% minus the highest reserve percentage
used for determining the maximum reserve requirement as specified in Regulation
D of the Board of Governors of the Federal Reserve System (including, without
limitation, any marginal, emergency, supplemental, special or other reserves)
that is applicable to any of the Eiffel Liquidity Banks during the related
Eurodollar Funding Period in respect of eurocurrency or eurodollar funding,
lending or liabilities (or, if more than one percentage shall be so applicable,
the daily average of such percentage for those days in the related Eurodollar
Funding Period during which any such percentage shall be applicable) plus (B)
the weighted average of the then daily net annual assessment rate (rounded
upwards, if necessary, to the nearest 1/100 of 1%) as estimated by the Eiffel
Funding Agent for determining the current annual assessment payable by each

                                       15
<PAGE>

of the Eiffel Liquidity Banks to the Federal Deposit Insurance Corporation in
respect of eurocurrency or eurodollar funding, lending or liabilities.

     "Eiffel Facility Limit" means $100,000,000.
      ---------------------

     "Eiffel Funding Agent" means CDC Financial Products Inc., as funding agent
      --------------------
for the benefit of Eiffel, and its permitted successors and assigns in such
capacity.

     "Eiffel LIBOR" means, with respect to any Tranche funded by the Eiffel
      ------------
Liquidity Banks and not based on the Eiffel Alternate Base Rate, for a specific
Eurodollar Funding Period, the rate for deposits in United States dollars for a
term equal to such Eurodollar Funding Period (commencing on the first day of
such Eurodollar Funding Period) which appears on Telerate Page 3750 as of 11:00
A.M. (London time) on the second Business Day prior to the commencement of such
Eurodollar Funding Period. If such rate does not appear on Telerate Page 3750,
the rate for such period shall be determined on the basis of the rates at which
deposits in United States dollars are offered by four (4) major banks in the
London interbank market, selected by the Eiffel Funding Agent, at approximately
11:00 A.M. (London time) on such date to prime banks in the London interbank
market for a period equal to such Eurodollar Funding Period (commencing on the
first day of the Eurodollar Funding Period). The Eiffel Funding Agent shall
request the principal London office of each such bank to provide a quotation of
its rate. If at least two (2) such quotations are provided, the rate for such
Eurodollar Funding Period shall be the arithmetic mean of the quotations. If
fewer than two quotations are provided as requested, the rate for such
Eurodollar Funding Period shall be the arithmetic mean of the rates quoted by
four (4) major banks in The City of New York, selected by the Eiffel Funding
Agent, at approximately 11:00 A.M. (New York time) on the first day of such
Eurodollar Funding Period for loans in United States dollars to leading European
banks for a period equal to such Eurodollar Funding Period (commencing on the
first day of such Eurodollar Funding Period). If at least two (2) such
quotations are provided, the rate for such Eurodollar Funding Period shall be
the arithmetic mean of the quotations. If fewer than two (2) quotations are
provided as requested, the rate for such Eurodollar Funding Period shall be the
LIBOR rate for the immediately preceding Eurodollar Funding Period.

     "Eiffel Liquidity Asset Purchase Agreement" means that certain Liquidity
      -----------------------------------------
Asset Purchase Agreement, dated as of March 30, 2001, by and among Eiffel, the
Eiffel Funding Agent and the financial institutions party thereto from time

                                       16
<PAGE>

to time, as the same may be amended, supplemented or otherwise modified and in
effect from time to time.

     "Eiffel Liquidity Banks" means those banks party to the liquidity agreement
      ----------------------
entered into between such banks and Eiffel with respect to this Agreement.

     "Eiffel Prime Rate" means the rate set forth in H.15(519) opposite the
      -----------------
caption "Bank Prime Loan" for such day. The Prime Rate is also available on
Telerate, currently at page 125. If any discrepancy arises between Telerate and
the printed version of H.15(519), the printed version of H.15(519) will take
precedence.

     If the Prime Rate is not published in H.15(519), then the Prime Rate will
be determined by calculating the arithmetic mean of the rates of interest
publicly announced by each bank named on Telerate under the heading "Prime Rate
Top 30 U.S. Banks," currently at page 38, as such bank's U.S. dollar prime rate
or base lending rate as in effect on such day at 3:30 p.m. (New York City time).
If fewer than four such rates appear on Telerate for such Reset date, then the
Prime Rate shall be the arithmetic mean of the rate of interest publicly
announced by three major banks in New York City, selected by the Eiffel Funding
Agent, as their U.S. dollar prime rate or base lending rate as in effect for
such day.

     "Eiffel Wind-Down Event" means that Eiffel, in its sole and absolute
      ----------------------
discretion, has elected not to make Advances to the Borrower with the proceeds
of Commercial Paper.

     "Electronic Ledger" means the electronic master record of the retail
      -----------------
installment sales contracts or installment loans of the Servicer, as amended,
supplemented or otherwise modified from time to time.

     "Eligible Account" means a segregated trust account with the corporate
      ----------------
trust department of a depository institution described in clause (b) of the
definition of Eligible Institution

     "Eligible Deposit Account" means either (X) a segregated account with a
      ------------------------
depository institution described in clause (a) of the definition of Eligible
Institution, or (Y) a segregated trust account with the corporate trust
department of a depository institution described in clause (b) of the definition
of Eligible Institution.

                                       17
<PAGE>

     "Eligible Institution" means either (a) a depository institution the
      --------------------
short-term obligations of which are rated at least "A-1" by S&P, "P-1" by
Moody's and "F1" by Fitch (if rated by Fitch), and which, if not the
Administrative Agent in its individual capacity, is such an institution
acceptable to the Required Lending Groups, or (b) a depository institution
organized under the laws of the United States of America or any state thereof or
the District of Columbia (or any domestic branch of a foreign bank), having
corporate trust powers and acting as trustee for funds deposited in such
account, so long as any of the securities of such depository institution have a
long-term credit rating from each Rating Agency in one of its generic rating
categories which signifies investment grade, and which, if not the
Administrative Agent in its individual capacity, is such an institution
acceptable to the Required Lending Groups.

     "Eligible Investments" means, at any time, any one or more of the following
      --------------------
obligations, securities or instruments (excluding any security with the "r"
symbol attached to its rating): (i) obligations issued by, or the principal of
and interest on which is backed by the full faith and credit of, the United
States of America; (ii) commercial paper rated at least "A-1" by S&P, "P-1" by
Moody's and "F1" by Fitch (if rated by Fitch); (iii) certificates of deposit,
other time deposits or bankers' acceptances issued by or established with an
Eligible Institution (described in clause (a) of the definition of "Eligible
Institution"); and (iv) the shares of money market mutual funds registered under
the Investment Company Act of 1940, as amended, that have a rating at the time
of the investment from each of the Rating Agencies in the highest credit rating
category.

     "Eligible Security" means, on any day of determination, an Asset Backed
      -----------------
Security (a) which is not in default with respect to any scheduled payment and
is not in a "rapid", "early" or similar amortization period triggered by a
"payout", "amortization" or similar event or an "event of default", (b) with
respect to which the information set forth in the related Schedule to the ABS
Sale Agreement was true and correct in all material respects on the relevant ABS
Sale Date, (c) which has been duly issued, is fully paid for and non-assessable
and with respect to which no provision has been waived (except to the extent
permitted by the Basic Agreements), (d) which has not been sold, transferred,
assigned or pledged by the Primary Seller to any Person other than under the
Sale and Servicing Agreement and the relevant ABS Sale Agreement, (e) which is
not subject to any Adverse Claim or any right of rescission, setoff,
counterclaim or defense and no such claim or right has been asserted or, to the
knowledge of the Primary Seller, threatened with respect thereto, (f) which is
not "margin stock" within the meaning of Regulation U of the Board of Governors
of the Federal Reserve System, (g) which is freely transferable by the

                                       18
<PAGE>

registered holder thereof and (h) which, as of such day of determination, has
not been outstanding more than 30 days from its original date of issuance.

     "Eligible Servicer" means, for purposes of Section 9.3(b) of the Sale and
      -----------------
Servicing Agreement, a financial institution or other entity that at the time of
its appointment as Servicer (i) is servicing a substantial portfolio of motor
vehicle retail installment sales contracts or motor vehicle installment loans in
the ordinary course of its business; (ii) is legally qualified and has the
capacity to service the Receivables; (iii) has demonstrated the ability
professionally and competently to service a portfolio of motor vehicle
installment loans similar to the Receivables; and (iv) has available software
that is adequate to perform its duties and responsibilities under the Sale and
Servicing Agreement.

     "Entitlement Order" has the meaning specified in Section 8-102(a)(8) of the
      -----------------
New York UCC.

     "ERISA" means the Employee Retirement Income Security Act of 1974, as
      -----
amended.

     "Eurocurrency Liabilities" has the meaning assigned to that term in
      ------------------------
Regulation D of the Board of Governors of the Federal Reserve System, as in
effect from time to time.

     "Eurodollar Funding" means a Funding as to which the interest with respect
      ------------------
thereto is calculated at the Eurodollar Rate.

     "Eurodollar Funding Period" means, with respect to a Eurodollar Funding,
      -------------------------
prior to the Termination Date, a period of up to one month requested by the
Borrower commencing on a Business Day requested by the Borrower and agreed to by
the applicable Funding Agent; provided, however, that each such Eurodollar
                              --------  -------
Funding Period shall expire on a Distribution Date.

     "Eurodollar Rate" means either the PARCO Eurodollar Rate, the HLS
      ---------------
Eurodollar Rate, the Victory Eurodollar Rate or the Eiffel Eurodollar Rate.

     "Excess Spread" means, with respect to the Pool Balance as it relates to
      -------------
Receivables, the Weighted Average Coupon thereof minus the sum of (i) Weighted
                                                 -----
Average Hedge Strike Price, (ii) 2.00% (representing the fees of the Servicer
and other transaction fees and expenses) and (iii) the Funded Spread. Excess
Spread shall be calculated as of the close of business on the Accounting Date

                                       19
<PAGE>

for purposes of the Servicer's Determination Date Certificate and as of the
close of the previous Business Day for any Servicer's Receivables Sale Date
Certificate. For purposes of the calculation of Excess Spread to be reflected in
any Servicer's Receivables Sale Date Certificate, "Receivables constituting the
Pool Balance" shall be deemed to include the Receivables to be sold on the
related Receivables Sale Date.

     "Excess Spread Deficiency" means, with respect to the Receivables
      ------------------------
constituting the Pool Balance, on any date of determination, the difference
between the Minimum Excess Spread and the actual Excess Spread, if less than the
Minimum Excess Spread. Excess Spread shall be calculated as of the close of
business on the Accounting Date for purposes of the Servicer's Determination
Date Certificate and as of the close of the previous Business Day for any
Servicer's Receivables Sale Date Certificate. For purposes of the calculation of
Excess Spread Deficiency to be reflected in any Servicer's Receivables Sale Date
Certificate, "Receivables constituting the Pool Balance" shall be deemed to
include the Receivables to be sold on the related Receivables Sale Date.

     "Excluded Taxes" means, with respect to the Administrative Agent, the
      --------------
Securities Intermediary, any Funding Agent or any Indemnified Party ("Tax
Indemnitee"), taxes which are both (A) imposed by the jurisdiction in which such
Tax Indemnitee is organized, a taxing authority thereof or therein or by any
other taxing authority of a United States jurisdiction as a result of such Tax
Indemnitee doing business or maintaining an office in such jurisdiction (other
than any such Taxes that would not have been imposed but for (1) having entered
into, executed, delivered, performed, not performed or enforced or failed to
enforce the Basic Agreements or any documents relating thereto or (2) any of the
transactions contemplated therein) and also (B) imposed on, based on or measured
by net income of such Tax Indemnitee. Excluded Taxes shall in no event include
(i) any documentary or similar taxes, (ii) amounts necessary for any
indemnification obligation hereunder to be made on an after-tax basis, or (iii)
any Taxes attributable to the overall transaction not constituting indebtedness
of the Borrower for United States federal income tax purposes.

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

     "Facility" means the warehouse funding facility extended by the Secured
      --------
Parties to the Borrower pursuant to the Security and Funding Agreement.

                                       20
<PAGE>

     "Facility Limit" means either the PARCO Facility Limit, the HLS Facility
      --------------
Limit, the Victory Facility Limit or the Eiffel Facility Limit.

     "Facility Term" means the period beginning on and including the Effective
      -------------
Date and ending on the Commitment Expiry Date.

     "Farm Credit Entitlement" means a "Security Entitlement" as defined in 12
      -----------------------
C.F.R.ss.615.5450.

     "FDIC" means the Federal Deposit Insurance Corporation.
      ----

     "Federal Funds Effective Rate" means, for any day with respect to a Lending
      ----------------------------
Group, the weighted average (rounded upwards, if necessary, to the next 1/100 of
1%) of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers, as published on the
next succeeding Business Day by the Federal Reserve Bank of New York, or, if
such rate is not so published for any day that is a Business Day, the average
(rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for
such day for such transactions received by the related Funding Agent from three
(3) Federal funds brokers of recognized standing selected by it.

     "Fee Letter" means that certain fee letter, dated on or about September 14,
      ----------
2000, between the Borrower and the Administrative Agent, with respect to
commitment fees payable to the related APA Banks, and facility fees and
utilization fees payable to the related CP Lenders, as the same may from time to
time be amended, supplemented or otherwise modified and in effect.

     "FHL Bank Entitlement" means a "Security Entitlement" as defined in 12
      --------------------
C.F.R.ss.912.1.

     "Financed Vehicle" means an automobile or light-duty truck van or minivan,
      ----------------
together with all accessions thereto, securing an Obligor's indebtedness under
the respective Receivable.

     "Financial Asset" has the meaning specified in Section 8-102(a)(14) of the
      ---------------
New York UCC.

     "Fitch" means Fitch, Inc. and any successor thereto or assign thereof.
      -----

     "Funded Spread" means 1.25%.
      -------------

                                       21
<PAGE>

     "Funding" has the meaning specified in Section 7.1(a) of the Security and
      --------
Funding Agreement.

     "Funding Agent" means either the PARCO Funding Agent, the HLS Funding
      -------------
Agent, the Victory Funding Agent or the Eiffel Funding Agent.

     "Funding Corporation Entitlement" means a "Security Entitlement" as defined
      -------------------------------
in 12 C.F.R.ss.1511.1.

     "Funding Date" means any day on which funds are advanced by the Secured
      ------------
Parties to the Borrower under the Security and Funding Agreement.

     "Funding Request" has the meaning specified in Section 7.1(a) of the
      ---------------
Security and Funding Agreement.

     "GAAP" means generally accepted accounting principles in the United States
      ----
of America.

     "Governmental Authority" means the United States of America, any state or
      ----------------------
other political subdivision thereof and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government.

     "Hedge Contract" means each interest rate protection contract entered into
      --------------
by the Borrower with a Hedge Counterparty in accordance with the terms of the
Sale and Servicing Agreement, as the same may be amended, supplemented or
otherwise modified and in effect from time to time.

     "Hedge Counterparty" means each counterparty to an interest rate protection
      ------------------
contract entered into by the Borrower, which counterparty shall have a long-term
debt rating of at least "A" from S&P and Fitch (if rated by Fitch) and at least
"A2" from Moody's, and shall not include AFS or any Affiliate thereof.

     "HLS" means Holland Limited Securitization, Inc., a Delaware corporation.
      ---

     "HLS Alternate Base Rate" means, for any day, a rate per annum equal to the
      -----------------------
greater of (a) the HLS Prime Rate in effect on such day and (b) the Federal
Funds Effective Rate in effect on such day plus 0.50%. Any change in the HLS
                                           ----
Alternate Base Rate due to a change in the HLS Prime Rate or the Federal

                                       22
<PAGE>

Funds Effective Rate shall be effective from and including the effective date of
such change in the HLS Prime Rate or the Federal Funds Effective Rate,
respectively.

     "HLS Eurodollar Rate" means, with respect to any Tranche for which the
      -------------------
applicable rate is to be determined by reference to LIBOR, a rate which is 1.25%
in excess of a rate per annum equal to the sum (rounded upwards, if necessary,
to the next higher 1/100 of 1%) of (A) the rate obtained by dividing (i) HLS
LIBOR by (ii) a percentage equal to 100% minus the highest reserve percentage
                                         -----
used for determining the maximum reserve requirement as specified in Regulation
D of the Board of Governors of the Federal Reserve System (including, without
limitation, any marginal, emergency, supplemental, special or other reserves)
that is applicable to any of the HLS Liquidity Banks during the related
Eurodollar Funding Period in respect of eurocurrency or eurodollar funding,
lending or liabilities (or, if more than one percentage shall be so applicable,
the daily average of such percentage for those days in the related Eurodollar
Funding Period during which any such percentage shall be applicable) plus (B)
                                                                     ----
the weighted average of the then daily net annual assessment rate (rounded
upwards, if necessary, to the nearest 1/100 of 1%) as estimated by the HLS
Funding Agent for determining the current annual assessment payable by each of
the HLS Liquidity Banks to the Federal Deposit Insurance Corporation in respect
of eurocurrency or eurodollar funding, lending or liabilities.

     "HLS Facility Limit" means $150,000,000.
      ------------------

     "HLS Liquidity Loan Agreement" means that certain Liquidity Loan Agreement,
      ----------------------------
dated as of September 21, 1999, by and among HLS, the HLS Funding Agent and the
financial institutions party thereto from time to time, as the same may be
amended, supplemented or otherwise modified and in effect from time to time.

     "HLS Funding Agent" means ING Baring (U.S.) Capital Markets, LLC, as
      -----------------
funding agent for the benefit of HLS, and its permitted successors and assigns
in such capacity.

     "HLS LIBOR" means, with respect to any Tranche funded by the HLS Liquidity
      ---------
Banks and not based on the HLS Alternate Base Rate, for a specific Eurodollar
Funding Period, the rate for deposits in United States dollars for a term equal
to such Eurodollar Funding Period (commencing on the first day of such
Eurodollar Funding Period) which appears on Telerate Page 3750 as of 11:00 A.M.
(London time) on the second Business Day prior to the commencement of such
Eurodollar Funding Period. If such rate does not appear on Telerate Page 3750,
the rate for such period shall be determined on the basis of the rates at which
deposits in

                                       23
<PAGE>

United States dollars are offered by four (4) major banks in the London
interbank market, selected by the HLS Funding Agent, at approximately 11:00 A.M.
(London time) on such date to prime banks in the London interbank market for a
period equal to such Eurodollar Funding Period (commencing on the first day of
the Eurodollar Funding Period). The HLS Funding Agent shall request the
principal London office of each such bank to provide a quotation of its rate. If
at least two (2) such quotations are provided, the rate for such Eurodollar
Funding Period shall be the arithmetic mean of the quotations. If fewer than two
quotations are provided as requested, the rate for such Eurodollar Funding
Period shall be the arithmetic mean of the rates quoted by four (4) major banks
in The City of New York, selected by the HLS Funding Agent, at approximately
11:00 A.M. (New York time) on the first day of such Eurodollar Funding Period
for loans in United States dollars to leading European banks for a period equal
to such Eurodollar Funding Period (commencing on the first day of such
Eurodollar Funding Period). If at least two (2) such quotations are provided,
the rate for such Eurodollar Funding Period shall be the arithmetic mean of the
quotations. If fewer than two (2) quotations are provided as requested, the rate
for such Eurodollar Funding Period shall be the LIBOR rate for the immediately
preceding Eurodollar Funding Period.

     "HLS Liquidity Banks" means those banks party to the liquidity agreement
      -------------------
entered into between such banks and HLS with respect to this Agreement.

     "HLS Prime Rate" means a fluctuating rate of interest per annum equal to
      --------------
the arithmetic average of the rates of interest publicly announced by The Chase
Manhattan Bank, Citibank, N.A., and Morgan Guaranty Trust Company of New York
(or their respective successors) as their respective prime commercial lending
rates (or, as to any such bank that does not announce such a rate, such bank's
"base" or other rate determined by HLS to be the equivalent rate announced by
such bank), except that, if any such bank shall, for any period, cease to
announce publicly its prime commercial lending (or equivalent) rate, HLS shall,
during such period, determine the "HLS Prime Rate" based upon the prime
                                   --------------
commercial lending (or equivalent) rates announced publicly by the other such
banks. The HLS Prime Rate is not intended to be the lowest rate of interest
charged by HLS in connection with extensions of credit to debtors. The HLS Prime
Rate shall change as and when such banks' prime commercial lending (or
equivalent) rates change; provided that each change in the HLS Prime Rate shall
                          --------
be effective from and including the date such change is publicly announced as
being effective.

                                       24
<PAGE>

     "HLS Wind-Down Event" means that HLS, in its sole and absolute discretion,
      -------------------
has elected not to make Advances to the Borrower with the proceeds of Commercial
Paper.

     "HUD Entitlement" means a "Security Entitlement" as defined in 24
      ---------------
C.F.R.ss.81.2.

     "Indemnified Amounts" has the meaning specified in Section 8.1 of the
      -------------------
Security and Funding Agreement.

     "Indemnified Parties" has the meaning specified in Section 8.1 of the
      -------------------
Security and Funding Agreement.

     "Independent Accountants" has the meaning specified in Section 5.11 of the
      -----------------------
Sale and Servicing Agreement.

     "Initial Funding" has the meaning specified in Section 7.1(a) of the
      ---------------
Security and Funding Agreement.

     "Insolvency Event" means, with respect to a specified Person (other than a
      ----------------
CP Lender), (a) the filing of a petition against such Person or the entry of a
decree or order for relief by a court having jurisdiction in the premises in
respect of such Person or any substantial part of its 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 for such Person
or for any substantial part of its property, or ordering the winding-up or
liquidation or such Person's affairs, and such petition, decree or order shall
remain unstayed and in effect for a period of 60 consecutive days; or (b) the
commencement by such Person 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 such Person to the entry of an order for relief in an involuntary
case under any such law, or the consent by such Person to the appointment of or
taking possession by, a receiver, liquidator, assignee, custodian, trustee,
sequestrator, or similar official for such Person or for any substantial part of
its property, or the making by such Person of any general assignment for the
benefit of creditors, or the failure by such Person generally to pay its debts
as such debts become due, or the taking of action by such Person in furtherance
of any of the foregoing.

                                      25
<PAGE>

     "Insurance Policy" means, with respect to a Receivable, any insurance
      ----------------
policy (including the insurance policies described in Section 5.4 of the Sale
and Servicing Agreement) benefitting the holder of the Receivable providing loss
or physical damage, credit life, credit disability, theft, mechanical breakdown
or similar coverage with respect to the Financed Vehicle or the Obligor, as the
same may be amended, supplemented or otherwise modified and in effect from time
to time.

     "Interest Component" means, with respect to any Commercial Paper issued by
      ------------------
a CP Lender to fund its Net Investment, the aggregate amount of interest or
discount, as applicable, due with respect to such Commercial Paper on the
maturity date thereof.

     "Interest Payment Date" means (a) with respect to any CP Funding made by a
      ---------------------
CP Lender, the last day of the related CP Funding Period, (b) with respect to
any ABR Funding, the next succeeding Distribution Date and (c) with respect to
any Eurodollar Funding, the last day of the related Eurodollar Funding Period.

     "Investment Earnings" means, on any date of determination, the investment
      -------------------
earnings on amounts on deposit in the Pledged Accounts on such date.

     "Late Payment Rate" means, with respect to each Lending Group, a rate per
      -----------------
annum equal to the Alternate Base Rate plus 2%.

     "Law" means, at any time, any law (including common law), constitution,
      ---
statute, treaty, regulation, rule, ordinance, order, injunction, writ, decree or
award of any Official Body.

     "Lending Group" means any of the groups consisting of (i) PARCO and the
      -------------
PARCO APA Banks, (ii) HLS, (iii) Eiffel and (iv) Victory and the Victory
Liquidity Banks.

     "Lien" means a security interest, lien, charge, pledge, equity, or
      ----
encumbrance of any kind.

     "Lien Certificate" means, with respect to a Financed Vehicle, an original
      ----------------
certificate of title, certificate of lien or other notification issued by the
Registrar of Titles of the applicable state to a secured party which indicates
that the lien of the secured party on the Financed Vehicle is recorded on the
original certificate of title, or, for any Contract secured by a Financed
Vehicle registered in any state for which the Paperless Title System is used to
evidence title to and any lien in

                                      26
<PAGE>

the Financed Vehicle, a computer printout or similar documentary evidence that
there is an electronic record in the Paperless Title System indicating that the
Financed Vehicle is owned by the Obligor and subject to the interest of the
Primary Seller as first lienholder or secured party (when such electronic record
becomes available through the Paperless Title System). In any jurisdiction in
which the original certificate of title is required to be given to the Obligor,
the term "Lien Certificate" means only a certificate or notification issued to a
secured party.

     "Lockbox Account" means an account maintained on behalf of the
      ---------------
Administrative Agent by the Lockbox Bank pursuant to Section 5.2(d) of the Sale
and Servicing Agreement, and any successor account.

     "Lockbox Agreement" means the Remittance Processing Agreement, dated the
      -----------------
date hereof, by and among the Borrower, the Servicer, the Lockbox Bank, and the
Administrative Agent, as such agreement may be amended or supplemented from time
to time, or any successor agreement, in form and substance satisfactory to the
Administrative Agent.

     "Lockbox Bank" means a depository institution named by the Servicer and
      ------------
acceptable to the Administrative Agent and the Funding Agents, which initially
is BankOne, N.A., or any of its affiliates; provided, however, that any such
depository institution shall have executed a Lockbox Agreement.

     "Managed Assets" means all motor vehicle retail installment sale contracts
      --------------
acquired by AFS or any affiliate and serviced by the Servicer or any Affiliate.

     "Maximum Facility Limit" means the sum of all Facility Limits of all
      ----------------------
Lending Groups, which amount shall equal $525,000,000 on the Effective Date.

     "Minimum Excess Spread" means 8.50%.
      ---------------------

     "Monthly Extension Rate" means, with respect to any Accounting Date, the
      ----------------------
fraction, expressed as a percentage, the numerator of which is the aggregate
Principal Balance of Managed Assets whose payments are extended during the
related Collection Period and the denominator of which is the aggregate
Principal Balance of Managed Assets as of the immediately preceding Accounting
Date.

     "Monthly Records" means all records and data maintained by the Servicer
      ---------------
with respect to the Receivables, including, but not limited to, the following

                                      27
<PAGE>

with respect to each Receivable: the account number; the originating Dealer;
Obligor name; Obligor address or Third Party Lender, if any; Obligor home phone
number; Obligor business phone number; original Principal Balance; original
term; Annual Percentage Rate; current Principal Balance; current remaining term;
origination date; first payment date; final scheduled payment date; next payment
due date; date of most recent payment; new/used classification; collateral
description; days currently delinquent; number of contract extensions (months)
to date; amount of Scheduled Payment; current Insurance Policy expiration date;
and past due late charges.

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

     "Net Investment" means, on any day with respect to a Lending Group, the sum
      --------------
of all amounts delivered by such Lending Group to the Borrower pursuant to
Section 7.1 of the Security and Funding Agreement, as such amount may be
increased, in the case of Advances funded with the proceeds of Commercial Paper,
by the accrued amount of the Interest Component of such CP Lender's Commercial
Paper that is repaid on the maturity date thereof from the proceeds of
Commercial Paper newly issued by it, and as such amount may be reduced by all
payments received from, or on behalf of, the Borrower and applied by such
Lending Group to reduce such Net Investment (including, but not limited to,
amounts received by a Lending Group in connection with an Optional Prepayment
pursuant to Section 7.1(f) of the Security and Funding Agreement).

     "Net Liquidation Proceeds" means, with respect to a Defaulted Receivable,
      ------------------------
all amounts realized with respect to such Receivable net of (i) reasonable
expenses incurred by the Servicer in connection with the collection of such
Receivable and the repossession and disposition of the Financed Vehicle and (ii)
amounts that are required to be refunded to the Obligor on such Receivable;
provided, however, that the Net Liquidation Proceeds with respect to any
--------  -------
Receivable shall in no event be less than zero.

     "Net Losses" means, with respect to any period, the aggregate Principal
      ----------
Balance of Managed Assets charged off (without regard to the application of any
dealer discount) during such period, less the aggregate amount of recoveries on
Managed Assets during such period.

     "New York UCC" means, at any time, the Uniform Commercial Code as in effect
      ------------
in the State of New York.

                                      28
<PAGE>

     "Notice Addresses" means, with respect to each Person specified below, its
      ----------------
address as specified below (as such address may be modified as specified in the
relevant Basic Agreement):

(i)      If to the Servicer or the Primary Seller:

         AmeriCredit Financial Services, Inc.
         801 Cherry Street, Suite 3900
         Fort Worth, Texas  76102
         Attention:  Treasurer
         Telephone No.:      (817) 302-7022
         Telecopier No.:      (817) 302-7942

(ii)     If to the Secondary Seller:

         AmeriCredit Funding Corp.V
         801 Cherry Street, Suite 3900
         Fort Worth, Texas  76102
         Attention:  Treasurer
         Telephone No.:      (817) 302-7022
         Telecopier No.:      (817) 302-7942

(iii)    If to the Borrower:

         AmeriCredit Manhattan Trust
         c/o Bankers Trust (Delaware)
         E.A. Delle Donne Corporate Center Montgomery Building
         10011 Centre Road, Suite 200
         Wilmington, DE 19805-1266
         Attention:  Corporate Trust Office
         Telephone No.:      (302) 636-3305
         Telecopier No.:      (302) 636-3222

                                      29
<PAGE>

(iv)     If to the Administrative Agent:

         The Chase Manhattan Bank,
           as Administrative Agent
         450 West 33rd Street, 15th Floor
         New York, New York 10001
         Attention:  Structured Finance Services
         Telephone No.:      (212) 946-7861
         Telecopier No.:      (212) 946-7776

(v)      If to the Back Up Servicer:

         The Chase Manhattan Bank
         Capital Markets Fiduciary Services
         450 West 33rd Street, 14th Floor
         New York, NY 10001-2697
         Attention:  AmeriCredit Manhattan Trust
         Telephone No.:  212-946-7148
         Telecopier No.:  212-946-8302

                                      30
<PAGE>

(vi)     If to the HLS Funding Agent:

         ING Baring (U.S.) Capital Markets, LLC
         55 East 52nd Street
         New York, New York 10055
         Attention:  Structured  Finance
         Facsimile No: (212) 409-1251
         Telephone No: (212) 409-1933

(vii)    If to HLS:

         Holland Limited Securitization, Inc.
         c/o ING Baring (U.S.) Capital Markets, LLC
         55 East 52nd Street
         New York, New York 10055
         Attention: Structured Finance
         Facsimile No.: (212) 409-1251
         Telephone No.: (212) 409-1933

(viii)   If to the PARCO Funding Agent or the PARCO APA Banks:

         c/o The Chase Manhattan Bank,
           as PARCO Funding Agent
         450 West 33rd Street, 15th Floor
         New York, New York 10001
         Attention: Structured Finance Services
         Telephone No.:  (212) 946-7861
         Telecopier No.: (212) 946-7776

                                      31
<PAGE>

(ix)     If to Fitch:

         Fitch Inc.
         One State Street Plaza
         New York, NY 10004
         Attention:  Asset Backed Surveillance
         Telephone:   (212) 908-0500
         Telecopier:  (212) 480-4438

(x)      If to Moody's:

         Moody's Investors Service, Inc.
         99 Church Street, 9th Floor
         New York, New York 10007
         Attention:  ABS Monitoring Department
         Telephone No.:    (212) 553-1402
         Telecopier No.:   (212) 553-3856

(x)      If to S&P:

         Standard & Poor's Ratings Services
         55 Water Street
         New York, New York 10041

(xi)     If to PARCO:

         Park Avenue Receivables Corporation
         c/o Global Securitization Services, LLC
         25 West 43rd Street, Suite 704
         New York, New York 10036
         Attention:  President
         Telephone No.:    (212) 302-5151
         Telecopier No.:   (212) 302-8767

         with a copy to the PARCO Funding Agent

(xii)    If to Eiffel:

         Eiffel Funding LLC
         c/o Global Securitization Services, LLC

                                      32
<PAGE>

         400 West Main Street
         Suite 338
         Babylon, NY 11702

         with a copy to:

         CDC Financial Products Inc.
         9 West 57 Street, 36th Floor
         New York, NY 10019

(xiii)   If to the Eiffel Funding Agent:

         CDC Financial Products Inc.
         9 West 57 Street, 36th Floor
         New York, NY 10019

(xiv)    If to Victory:

         Victory Receivables Corporation
         c/o The Bank of Tokyo-Mitsubishi, Ltd.
         New York Branch,
         1251 Avenue of the Americas
         New York, New York 10020
         Attn: Securitization Group
         Tel 212 782-6957
         Fax 212 782-6448

(xv)     If to the Victory Funding Agent

         The Bank of Tokyo-Mitsubishi, Ltd.
         New York Branch,
         1251 Avenue of the Americas
         New York, New York 10020
         Attn: Securitization Group
         Tel 212 782-6957
         Fax 212 782-6448

     "Obligor" on (i) a Receivable means the obligor or co-obligors of the
      -------
Financed Vehicle, and any other Person who owes payments under the Receivable or
under a Contract and (ii) an Asset Backed Security means the issuer or co-issuer
of

                                      33
<PAGE>

the Asset Backed Security, and any other Person who owes payments under the
Asset Backed Security or related ABS Documents.

     "Officer's Certificate" means a certificate signed by an Authorized Officer
      ---------------------
of the relevant Seller or the Servicer, as appropriate.

     "Official Body" means any government or political subdivision or any
      -------------
agency, authority, bureau, central bank, commission, department or
instrumentality of either, or any court, tribunal, grand jury or arbitrator, in
each case whether foreign or domestic.

     "Opinion of Counsel" means a written opinion of counsel satisfactory as to
      ------------------
form, substance and issuing counsel, to the Borrower, the Administrative Agent,
the Funding Agents and, when applicable, the Required Lending Groups.

     "Optional Prepayment" has the meaning specified in Section 7.1(f) of the
      -------------------
Security and Funding Agreement.

     "Other Conveyed Property" means all property sold by the relevant Seller to
      -----------------------
the Borrower described in Section 2.1 (b) through (h) of the Sale and Servicing
Agreement.

     "Other Designated Asset Backed Securities" has the meaning specified in
      ----------------------------------------
Section 7.1(f)(ii) of the Security and Funding Agreement.

     "Other Designated Receivables" has the meaning specified in Section
      ----------------------------
7.1(f)(ii) of the Security and Funding Agreement.

     "Other Transferor" means any Person other than the Borrower that has
      ----------------
entered into a receivables purchase agreement, loan agreement, transfer and
administration agreement or other similar agreement with a CP Lender.

     "Paperless Title System" means any electronic lien and title system used in
      ----------------------
any jurisdictions with the prior written consent of the Administrative Agent
(acting in its reasonable discretion).

     "PARCO" means Park Avenue Receivables Corporation, a Delaware corporation.
      -----

                                      34
<PAGE>

     "PARCO Alternate Base Rate" means, for any day, a rate per annum equal to
      -------------------------
the greater of (a) the PARCO Prime Rate in effect on such day and (b) the
Federal Funds Effective Rate in effect on such day plus 0.50% of 1%. Any change
                                                   ----
in the PARCO Alternate Base Rate due to a change in the PARCO Prime Rate or the
Federal Funds Effective Rate shall be effective from and including the effective
date of such change in the PARCO Prime Rate or the Federal Funds Effective Rate,
respectively.

     "PARCO APA Bank" means any Person executing the PARCO Asset Purchase
      --------------
Agreement as an "APA Bank" thereunder, and its permitted successors and assigns
in such capacity.

     "PARCO Asset Purchase Agreement" means that certain Asset Purchase
      ------------------------------
Agreement, dated as of September 14, 2000, by and among PARCO, the PARCO Funding
Agent and the several financial institutions party thereto from time to time, as
the same may be amended, supplemented or otherwise modified and in effect from
time to time.

     "PARCO Eurodollar Rate" means, with respect to any Tranche for which the
      ---------------------
applicable rate is to be determined by reference to PARCO LIBOR, a rate which is
1.25% in excess of a rate per annum equal to the sum (rounded upwards, if
necessary, to the next higher 1/100 of 1%) of (A) the rate obtained by dividing
(i) the applicable PARCO LIBOR by (ii) a percentage equal to 100% minus the
                                                                  -----
reserve percentage used for determining the maximum reserve requirement as
specified in Regulation D of the Board of Governors of the Federal Reserve
System (including, without limitation, any marginal, emergency, supplemental,
special or other reserves) that is applicable to the PARCO Funding Agent during
the related Eurodollar Funding Period in respect of eurocurrency or eurodollar
funding, lending or liabilities (or, if more than one percentage shall be so
applicable, the daily average of such percentage for those days in the related
Eurodollar Funding Period during which any such percentage shall be applicable)
plus (B) the then daily net annual assessment rate (rounded upwards, if
----
necessary, to the nearest 1/100 of 1%) as estimated by the PARCO Funding Agent
for determining the current annual assessment payable by the PARCO Funding Agent
to the Federal Deposit Insurance Corporation in respect of eurocurrency or
eurodollar funding, lending or liabilities.

     "PARCO Facility Limit" means $375,000,000.
      --------------------

                                      35
<PAGE>

     "PARCO Funding Agent" means The Chase Manhattan Bank, a New York banking
      -------------------
corporation, as funding agent for the benefit of PARCO and the PARCO APA Banks,
and its permitted successors and assigns in such capacity.

     "PARCO LIBOR" means, with respect to any Tranche funded by the PARCO APA
      -----------
Banks and not based on the PARCO Alternate Base Rate, for a specific Eurodollar
Funding Period, the rate for deposits in United States dollars for a term equal
to such Eurodollar Funding Period (commencing on the first day of such
Eurodollar Funding Period) which appears on Telerate Page 3750 as of 11:00 A.M.
(London time) on the second Business Day prior to the commencement of such
Eurodollar Funding Period. If such rate does not appear on Telerate Page 3750,
the rate for such period shall be determined on the basis of the rates at which
deposits in United States dollars are offered by four (4) major banks in the
London interbank market, selected by the PARCO Funding Agent, at approximately
11:00 A.M. (London time) on such date to prime banks in the London interbank
market for a period equal to such Eurodollar Funding Period (commencing on the
first day of the Eurodollar Funding Period). The PARCO Funding Agent shall
request the principal London office of each such bank to provide a quotation of
its rate. If at least two (2) such quotations are provided, the rate for such
Eurodollar Funding Period shall be the arithmetic mean of the quotations. If
fewer than two quotations are provided as requested, the rate for such
Eurodollar Funding Period shall be the arithmetic mean of the rates quoted by
four (4) major banks in The City of New York, selected by the PARCO Funding
Agent, at approximately 11:00 A.M. (New York time) on the first day of such
Eurodollar Funding Period for loans in United States dollars to leading European
banks for a period equal to such Eurodollar Funding Period (commencing on the
first day of such Eurodollar Funding Period). If at least two (2) such
quotations are provided, the rate for such Eurodollar Funding Period shall be
the arithmetic mean of the quotations. If fewer than two (2) quotations are
provided as requested, the rate for such Eurodollar Funding Period shall be the
LIBOR rate for the immediately preceding Eurodollar Funding Period.

     "PARCO Prime Rate" means the rate of interest per annum publicly announced
      ----------------
from time to time by The Chase Manhattan Bank as its prime rate in effect at its
principal office in The City of New York (which rate may not be the lowest rate
offered by The Chase Manhattan Bank at such time); provided that each change in
                                                   --------
the PARCO Prime Rate shall be effective from and including the date such change
is publicly announced as being effective.

     "Person" means any individual, corporation, estate, partnership, limited
      ------
liability company, joint venture, association, joint stock company, trust

                                      36
<PAGE>

(including any beneficiary thereof), unincorporated organization or government
or any agency or political subdivision thereof.

     "Pledged Account Property" means any and all securities, security
      ------------------------
entitlements, financial assets, investment property, instruments and cash or
other property held in the Pledged Accounts at any time.

     "Pledged Accounts" has the meaning specified in Section 6.1(b) of the Sale
      ----------------
and Servicing Agreement.

     "Pool Balance" means, as of any date of determination, the sum of the
      ------------
Principal Balances of all Receivables and Asset Backed Securities then pledged
to the Secured Parties, excluding (i) any Asset Backed Security where any
payment of interest or principal has not been made when due, (ii) any Receivable
that is a Delinquent Receivable or a Defaulted Receivable as of the relevant
Reference Date, (iii) any Repurchased Receivable (or Receivable subject to the
Repurchase Obligation as of the relevant Reference Date) and any Repurchased
Asset Backed Security (or Asset Backed Security subject to the ABS Repurchase
Obligation as of the relevant Reference Date), and (iv) any Receivable that has
been outstanding 210 days or more from the date of origination or acquisition of
such Receivable by the Primary Seller and further reduced by deducting the
amount determined as follows: the product of (A) the three-month average of the
Pool Monthly Extension Rates minus 4% (if a positive number) and (B) the sum of
the Principal Balances for all Receivables after giving effect to the exclusion
described in the foregoing clauses (ii) and (iii).

     "Pool Limitations" means the following dealer concentration, geographic
      ----------------
concentration and minimum average Credit Score criteria and other specified
limits, as of any date of determination:

     (i)  The Principal Balance of Receivables representing Contracts purchased
          from any one Dealer (including any Affiliates of such Dealer other
          than companies primarily engaged in the business of owning multiple
          dealerships deemed dealer consolidators) shall not exceed 3% of the
          Pool Balance;

     (ii) The Principal Balance of Receivables originated in the State of
          California shall not at any time exceed 25% of the Pool Balance; the
          Principal Balance of Receivables originated in

                                      37
<PAGE>

           any other state of the United States shall not at any time exceed 15%
           of the Pool Balance;

     (iii) The weighted average Credit Score of the Receivables constituting the
           Pool Balance shall not be below 220;

     (iv)  The Principal Balance of Receivables representing Contracts having an
           original maturity of more than 60 months shall not exceed 15% of the
           Pool Balance; and

     (v)   The Principal Balance of Receivables representing Contracts having a
           remaining balance of more than $40,000 shall not exceed 5% of the
           Pool Balance.

     "Pool Monthly Extension Rates" means, with respect to any Collection
      ----------------------------
Period, a fraction, expressed as a percentage, the numerator of which is the
Principal Balance, as of the Accounting Date for such Collection Period, of
those Receivables included in the Pool Balance as to which payments are extended
during such Collection Period, and the denominator of which is the total Pool
Balance as of the Accounting Date for the previous Collection Period.

     "Portfolio Performance Trigger" means the occurrence of any of the
      -----------------------------
following (which shall be reflected in a Servicer's Determination Date
Certificate):

     1. the aggregate Principal Balance of Managed Assets with respect to which
     5% or more of any scheduled payment is more than 60 days past due
     (including Managed Assets secured by a repossessed motor vehicle) exceeds
     7.5% of the total Principal Balance of Managed Assets;

     2. the aggregate Net Losses during the prior 6 calendar month period
     exceeds 8% of the average of the month-end Principal Balance of Managed
     Assets for each month during the prior 7 calendar month period;

     3. the average Monthly Extension Rate of the Managed Assets for any three
     consecutive calendar months exceeds 5.0%.

                                      38
<PAGE>

     "Potential Servicer Termination Event" means an event that with the lapse
      ------------------------------------
of time or the giving of notice, or both, would constitute a Servicer
Termination Event.

     "Potential Termination Event" means an event that with the lapse of time or
      ---------------------------
the giving of notice, or both, would constitute a Termination Event.

     "Potential Wind-Down Event" means, with respect to HLS, Victory or Eiffel,
      -------------------------
an event that with the lapse of time or the giving of notice, would constitute a
Wind-Down Event.

     "Prepayment Related Collateral" has the meaning set forth in Section
      -----------------------------
7.1(f)(ii) of the Security and Funding Agreement.

     "Primary Seller" means AmeriCredit Financial Services, Inc., and its
      --------------
successors and assigns.

     "Prime Rate" means the PARCO Prime Rate, the HLS Prime Rate, the Victory
      ----------
Prime Rate or the Eiffel Prime Rate.

     "Principal Balance" means, with respect to any Receivable or any Asset
      -----------------
Backed Security, as of any date, the sum of (x) in the case of a Receivable, the
Amount Financed, and, in the case of an Asset Backed Security, the principal
amount thereof in accordance with its terms, at the time of acquisition by the
Borrower, minus (i) that portion of all amounts received on or prior to such
date and allocable to principal in accordance with the terms of the Receivable
or the Asset Backed Security, as applicable, and (ii) in the case of a
Receivable, any Cram Down Loss in respect of such Receivable, plus (y) the
accrued and unpaid interest on such Receivable or Asset Backed Security, as the
case may be.

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

     "Rating Agency" means, at any time, Moody's, S&P and Fitch or such other
      -------------
nationally recognized statistical rating organization from which a rating for
the Commercial Paper was requested by a CP Lender and is then in effect.

     "Rating Agency Condition" means, with respect to any action, that each
      -----------------------
Rating Agency shall have been given 10 days' (or such shorter period as shall be
acceptable to each Rating Agency) prior notice thereof and that each of the
Rating

                                      39
<PAGE>

Agencies shall have notified the Sellers, the Servicer, the Borrower, the
Administrative Agent and the Funding Agents in writing that such action will not
result in a reduction or withdrawal of the then current rating of each CP
Lender's Commercial Paper.

     "Rating Confirmation" means, for any CP Lender with respect to any subject
      -------------------
amendment, modification, waiver or other action to be taken pursuant to the
terms of this Agreement, a confirmation by each of the Rating Agencies that such
proposed amendment, modification, waiver or action shall not result in a
downgrade or withdrawal of each Rating Agency's then current rating of such CP
Lender's Commercial Paper or any other debt securities, rated at the request of
such CP Lender, by each such Rating Agency.

     "Receivable" means, with respect to any Contract listed on the Schedule of
      ----------
Receivables, such Contract, all proceeds thereof and payment obligations
thereunder.

     "Receivable Files" means the documents specified in Section 4.3 of the Sale
      ----------------
and Servicing Agreement.

     "Receivables Purchase Price" means, on any Receivables Sale Date, the
      --------------------------
purchase price for the Receivables sold on such date, which purchase price shall
be the price that would be obtained in an arms-length transaction between a
seller under no compulsion to sell and a buyer under no compulsion to buy, as
set forth in the Receivables Sale Notice and the related Receivables Sale
Agreement.

     "Receivables Sale Agreement" means an agreement among the Borrower and the
      --------------------------
Sellers with respect to the Receivables sold to the Borrower on each Receivables
Sale Date, substantially in the form of Exhibit A-1 to the Sale and Servicing
Agreement.

     "Receivables Sale Date" means any date occurring not more frequently than
      ---------------------
twice a week during the Facility Term on which Receivables are to be sold to the
Borrower pursuant to the Sale and Servicing Agreement, and a Receivables Sale
Agreement is executed and delivered to the Borrower.

                                      40
<PAGE>

     "Receivables Sale Notice" means, with respect to any sale of Receivables to
      -----------------------
the Borrower on any Receivables Sale Date, a notice substantially in the form of
Exhibit C-1 to the Sale and Servicing Agreement, stating the Sellers' intention
to sell Receivables to the Borrower and designating the related Receivables Sale
Date and the approximate principal amount of Receivables to be sold on such
Receivables Sale Date.

     "Recipient" has the meaning specified in Section 7.2 of the Security and
      ---------
Funding Agreement.

     "Reference Date" means, for purposes of any determination to be made with
      --------------
respect to the Receivables or Asset Backed Securities, as applicable, on any
date, the close of business on the preceding Business Day.

     "Registrar of Titles" means, with respect to any state, the governmental
      -------------------
agency or body responsible for the registration of, and the issuance of
certificates of title relating to, motor vehicles and liens thereon.

     "Regulation D" means Regulation D of the Board of Governors of the Federal
      ------------
Reserve System, as the same may be amended, supplemented or otherwise modified
and in effect from time to time.

     "Relevant Cutoff Date" means, for purposes of any determination to be made
      --------------------
with respect to the Receivables being sold on any Receivables Sale Date, the
close of business on the Business Day next preceding delivery of the Receivables
Sale Notice.

     "Relevant UCC" means, at any time, the Uniform Commercial Code as in effect
      ------------
in the applicable jurisdiction(s).

     "Repurchase Obligation" means, as the context may require, the obligation
      ---------------------
of the relevant Seller pursuant to Section 4.2 of the Sale and Servicing
Agreement, or the obligation of the Servicer pursuant to Section 5.7 of the Sale
and Servicing Agreement, to repurchase or to purchase, as the case may be, a
Receivable.

     "Repurchase Obligation Amount" means, with respect to any Receivable
      ----------------------------
subject to a Repurchase Obligation, the Principal Balance on such Receivable,
together with accrued and unpaid interest thereon, after giving effect to the
receipt of any moneys collected (from whatever source), if any.

                                      41
<PAGE>

     "Repurchased Asset Backed Security" means an Asset Backed Security
      ---------------------------------
repurchased by the Primary Seller pursuant to Section 4A.2 of the Sale and
Servicing Agreement; in each case, such transaction to be deemed effective as of
the close of business on the last day of the Collection Period in which such
repurchase is required to be made, and the funds representing the repurchase
price to be deposited by the Primary Seller in the Collection Account on the
last day of such Collection Period.

     "Repurchased Receivable" means a Receivable purchased by the Servicer
      ----------------------
pursuant to Section 5.7 of the Sale and Servicing Agreement or repurchased by
the relevant Seller pursuant to Section 4.2 of the Sale and Servicing Agreement;
in each case, such transaction to be deemed effective as of the close of
business on the last day of the Collection Period in which such purchase or
repurchase is required to be made, and the funds representing the purchase or
repurchase price to be deposited by the relevant Seller or the Servicer, as the
case may be, in the Collection Account on the Determination Date corresponding
to such Collection Period.

     "Required Lending Groups" means, in the aggregate at any time, Lending
      -----------------------
Groups whose Facility Limits equal or exceed 66 2/3% of the Maximum Facility
Limit; provided that the determination of action or inaction on the part of a
       --------
Lending Group in connection with any amendment, waiver, consent or modification
shall be determined in accordance with its related Asset Purchase Agreement.

     "Requirements of Law" for any Person means the certificate of incorporation
      -------------------
or articles of association and by-laws or other organizational or governing
documents of such Person, and any law, treaty, rule or regulation, or
determination of an arbitrator or Governmental Authority, in each case
applicable to or binding upon such Person or to which such Person is subject,
whether Federal, state or local (including, without limitation, usury laws, the
Federal Truth in Lending Act and Regulation Z and Regulation B of the Board of
Governors of the Federal Reserve System).

     "Responsible Officer" of a Person means any officer, employee or agent of
      -------------------
such Person.

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

     "Sale and Servicing Agreement" means the Sale and Servicing Agreement,
      ----------------------------
dated as of September 14, 2000 (together with the Schedules and Exhibits

                                      42
<PAGE>

thereto, and together with Annex A, the schedule of defined terms, thereto), by
and among the Borrower, the Sellers, the Servicer, the Administrative Agent and
the Backup Servicer, as the same may be amended, supplemented or otherwise
modified and in effect from time to time.

     "Sallie Mae Entitlement" means a "Security Entitlement" as defined in 31
      ----------------------
C.F.R. (S)354.1.

     "Schedule of Receivables" means, collectively, the schedules of retail
      -----------------------
installment sales contracts and promissory notes sold by the Sellers to the
Borrower attached as Schedule A-1 and A-2 to each Receivables Sale Agreement.

     "Schedule of Representations" means the Schedule of Representations and
      ---------------------------
Warranties attached to the Sale and Servicing Agreement as Schedule B, as
amended, supplemented or otherwise modified from time to time.

     "Scheduled Payment" means, with respect to any Collection Period for any
      -----------------
Receivable, the amount set forth in such Receivable as required to be paid by
the Obligor in such Collection Period. If after the respective Receivables Sale
Date, the Obligor's obligation under a Receivable with respect to a Collection
Period has been modified so as to differ from the amount specified in such
Receivable as a result of (i) the order of a court in an insolvency proceeding
involving the Obligor, (ii) pursuant to the Soldiers' and Sailors' Civil Relief
Act of 1940 or (iii) modifications or extensions of the Receivable permitted by
Sections 5.2(b) or 5.2(c) of the Sale and Servicing Agreement, the Scheduled
Payment with respect to such Collection Period refers to the Obligor's payment
obligation with respect to such Collection Period as so modified.

     "Secondary Seller" means AmeriCredit Funding Corp. V, a Delaware
      ----------------
corporation and its successors and assigns.

     "Secured Obligations" means all amounts and obligations that the Borrower
      -------------------
may at any time owe or be required to perform, to or for the benefit of the
Secured Parties, whether existing on the date of the Security and Funding
Agreement or thereafter arising, under or in connection with any Basic Agreement
or otherwise in connection with the transactions contemplated by the Basic
Agreements.

     "Secured Parties" means, collectively, the CP Lenders, the Funding Agents,
      ---------------
the APA Banks, the HLS Liquidity Banks, the Victory Liquidity Banks and the
Eiffel Liquidity Banks.

                                      43
<PAGE>

     "Securitization Trust" means any Person (whether or not a subsidiary of
      --------------------
AFS) established exclusively for the purpose of issuing securities in connection
with any securitization of receivables arising from consumer installment sales
contracts or loans by AFS or certain of its subsidiaries, the obligations of
which are without recourse to AFS or such subsidiaries.

     "Securities Intermediary" has the meaning specified in Section 8-102(a)(14)
      -----------------------
of the New York UCC, and shall be initially, The Chase Manhattan Bank, a New
York banking corporation.

     "Security and Funding Agreement" means the Security and Funding Agreement,
      ------------------------------
dated as of September 14, 2000, by and among the Borrower, the Administrative
Agent, the Securities Intermediary and the several Secured Parties party thereto
from time to time, as may be from time to time amended, supplemented, or
otherwise modified and in effect.

     "Security Entitlement" has the meaning specified in Section 8-102(a)(17) of
      --------------------
the New York UCC.

     "Sellers" means the Primary Seller and the Secondary Seller, collectively.
      -------

     "Service Contract" means, with respect to a Financed Vehicle, the
      ----------------
agreement, if any, financed under the related Receivable that provides for the
repair of such Financed Vehicle.

     "Servicer" means AmeriCredit Financial Services, Inc., as the servicer
      --------
under the Sale and Servicing Agreement, and each successor Servicer pursuant to
Section 8.3 of the Sale and Servicing Agreement.

     "Servicer Advance" has the meaning set forth in Section 6.5 of the Sale and
      ----------------
Servicing Agreement.

     "Servicer Termination Event" means an event specified in Section 9.1 of the
      --------------------------
Sale and Servicing Agreement.

     "Servicer's Determination Date Certificate" means an Officer's Certificate
      -----------------------------------------
of the Servicer delivered pursuant to Section 5.9(a) of the Sale and Servicing
Agreement on each Determination Date, substantially in the form of Exhibit B-1
thereto, as such form may from time to time be revised by the Servicer

                                      44
<PAGE>

with the approval of the Administrative Agent and the Funding Agents to conform
to amendments of the Basic Agreements or otherwise to clarify the required
reporting.

     "Servicer's Receivables Sale Date Certificate" means an Officer's
      --------------------------------------------
Certificate of the Servicer delivered pursuant to Section 3.2 of the Sale and
Servicing Agreement, substantially in the form of Exhibit D-1 thereto, as such
form may from time to time be revised by the Servicer with the approval of the
Administrative Agent and the Funding Agents to conform to amendments of the
Basic Agreements or otherwise to clarify the required reporting.

     "Servicer's ABS Sale Date Certificate" means an Officer's Certificate of
      ------------------------------------
the Servicer delivered pursuant to Section 3.3 of the Sale and Servicing
Agreement, substantially in the form of Exhibit D-2 thereto, as such form may
from time to time be revised by the Servicer with the approval of the
Administrative Agent and the Funding Agents to conform to amendments of the
Basic Agreements or otherwise to clarify the required reporting.

     "Servicer's VFN Prepayment Date Certificate" means an Officer's Certificate
      ------------------------------------------
of the Servicer to be delivered by the Servicer to the Borrower in accordance
with Section 5.9(b) of the Sale and Servicing Agreement, substantially in the
form of Schedule B-2 thereto, as such form may from time to time be revised by
the Servicer with the approval of the Administrative Agent and the Funding
Agents to conform to amendments of the Basic Agreements or otherwise to clarify
the required reporting.

     "Servicing Fee" has the meaning specified in Section 5.8 of the Sale and
      -------------
Servicing Agreement.

     "Servicing Fee Rate" means 1.75% per annum.
      ------------------

     "Servicing Standard" has the meaning specified in Section 5.1(a) of the
      ------------------
Sale and Servicing Agreement.

     "Simple Interest Method" means the method of allocating a fixed level
      ----------------------
payment on an obligation between principal and interest, pursuant to which the
portion of such payment that is allocated to interest is equal to the product of
the fixed rate of interest on such obligation multiplied by the period of time
(expressed as a fraction of a year, based on the actual number of days in the
calendar month and 365 days in the calendar year) elapsed since the preceding
payment under the obligation was made.

                                      45
<PAGE>

     "Simple Interest Requisite Amount" means a Receivable under which the
      --------------------------------
portion of the payment allocable to interest and the portion allocable to
principal is determined in accordance with the Simple Interest Method.

     "Supplemental Servicing Fee" means, with respect to any Collection Period,
      --------------------------
all administrative fees, expenses and charges paid by or on behalf of Obligors,
including late fees, prepayment fees and liquidation fees collected on the
Receivables during such Collection Period.

     "Swing Line Funding Limit" means $75,000,000.
      ------------------------

     "Taxes" has the meaning specified in Section 8.3 of the Security and
      -----
Funding Agreement.

     "Tangible Net Worth" means, as of any date with respect to AmeriCredit
      ------------------
Corp., the total shareholders' equity that would appear on a consolidated
balance sheet of AmeriCredit Corp. prepared as of such date in accordance with
GAAP less intangible assets that would appear on a consolidated balance sheet of
     ----
AmeriCredit Corp. prepared as of such date in accordance with GAAP.

     "Targeted Monthly Principal Payment" means, with respect to any
      ----------------------------------
Distribution Date, the amount required to reduce the VFN Balance, as set forth
in the related Servicer's Determination Date Certificate, to an amount equal to
the sum of (A) the product of (i) the portion of the Pool Balance relating to
Receivables as set forth in the related Servicer's Determination Date
Certificate, and (ii) the Advance Percentage with respect to Receivables as set
forth in the later of the related Servicer's Determination Date Certificate or
the most recently delivered Servicer's Receivables Sale Date Certificate, plus
                                                                          ----
(B) the product of (i) the portion of the Pool Balance relating to Asset Backed
Securities as set forth in the related Servicer's Determination Date
Certificate, and (ii) the Advance Percentage with respect to Asset Backed
Securities as set forth in the later of the related Servicer's Determination
Date Certificate or the most recently delivered Servicer's ABS Sale Date
Certificate.

     "Tennessee Valley Entitlement" means a "Security Entitlement" as defined in
      ----------------------------
18 C.F.R. (S)1314.2.

     "Termination Date" means the date that is the latest of (i) the Commitment
      ----------------
Expiry Date, (ii) the date on which the Secured Parties shall have received
payment and performance in full of all Secured Obligations, and no amounts

                                      46
<PAGE>

remain due and owing by the Borrower, the Sellers or the Servicer to the
Administrative Agent, the Funding Agents and the Secured Parties under any Basic
Agreement, and (iii) the latest date on which any payment referred to in clause
(ii) above could be avoided as a preference under the United States Bankruptcy
Code or any other similar federal or state law relating to insolvency,
bankruptcy, rehabilitation, liquidation or reorganization, as specified in an
Opinion of Counsel delivered to the Administrative Agent and the Funding Agents.

     "Termination Event" means the occurrence of any one or more of the
      -----------------
following:

     (a) Any failure by the Borrower under the Sale and Servicing Agreement, the
Security and Funding Agreement, any other Basic Agreement or other permitted
contract or indebtedness, if any, to make any payment or deposit to be made by
it thereunder when due; or, any failure by the Borrower duly to observe the
provisions of the Trust Agreement; or, any failure by the Borrower duly to
observe or perform any covenant or agreement set forth in Section 4.2(g) of the
Security and Funding Agreement;

     (b) Any failure by the Borrower under the Sale and Servicing Agreement, the
Security and Funding Agreement, any other Basic Agreement or document or
certificate delivered pursuant thereto or in connection therewith, or other
permitted contract or indebtedness, if any, duly to observe or perform any
covenant or agreement set forth therein (other than those described or
enumerated in clause (a) above or in any of the following clauses of the
definition of "Termination Event") and the continuation of such failure
unremedied for a period of 30 days after knowledge thereof by the Borrower, or
after the date on which written notice of such failure shall have been given to
the Borrower by the Administrative Agent (acting at the direction of the
Required Lending Groups);

     (c) Any representation, warranty, certification or statement made by the
Borrower in the Sale and Servicing Agreement, the Security and Funding Agreement
or in any other Basic Agreement or in any document or certificate delivered
pursuant thereto or in connection therewith shall prove to have been incorrect
in any material respect when made or deemed made;

     (d) Any failure by either Seller under the Sale and Servicing Agreement or
any other Basic Agreement to make any payment or deposit thereunder when due and
the continuation of such failure unremedied for a period of two

                                      47
<PAGE>

Business Days (or one Business Day with respect to payment of Repurchase
Obligation Amounts or ABS Repurchase Obligation Amounts);

     (e) Either Seller shall (A) default in the performance of any covenant set
forth in Section 2.3(c) or in Sections 7.2(a) or (b) or Section 7.4 of the Sale
and Servicing Agreement, or (B) either Seller shall fail duly to observe or
perform any other covenant or agreement set forth in the Sale and Servicing
Agreement or in any other Basic Agreement (other than those described or
enumerated in any other provision of the definition of Termination Event for
which a different grace period or no grace period applies, including in the
immediately preceding clause (A)), and such failure continues unremedied for a
period of 30 days after knowledge thereof by such Seller or after the date on
which written notice of such failure shall have been given to such Seller by the
Administrative Agent (acting at the direction of the Required Lending Groups) or
the Borrower;

     (f) The amount allocated to the Collection Account Reserve shall fall below
the Collection Account Reserve Minimum and such deficiency shall remain uncured
on the first to occur of (x) the fifth Business Day following the date on which
such deficiency occurs, and (y) the next occurring Receivables Sale Date;

     (g) The occurrence of a Portfolio Performance Trigger;

     (h) The occurrence of any Event of Default (as therein defined) under any
public asset-backed transaction of AmeriCredit Corp. or any of its direct or
indirect subsidiaries;

     (i) The Tangible Net Worth of AmeriCredit Corp. shall be less than
$600,000,000 plus 70% of all positive net income for each fiscal quarter having
been completed since June 30, 2000 as of any date and such failure shall
continue for a period of 20 days;

     (j) AmeriCredit Corp., either Seller or the Servicer, with respect to any
outstanding credit agreement (other than in connection with the Facility) that
represents a commitment or outstanding indebtedness in excess of $5,000,000,
individually or in the aggregate, shall default in any payment of principal or
interest or shall default in any other respect the effect of which is to cause
or permit the holders of indebtedness pursuant to any such agreement to cause
the acceleration of such indebtedness (in each case, after giving effect to all
applicable cure periods in any such credit agreement);

                                      48
<PAGE>

     (k) The filing of any Proceedings against AmeriCredit Corp., either Seller,
the Servicer or the Borrower (or any affiliate or subsidiary) that: (a) are not
dismissed within 90 days; and (b) either (A) as to which there is a reasonable
possibility of an adverse determination and that, if adversely determined could
reasonably be expected, individually or in the aggregate, to have a material
adverse effect on the business, operations or financial condition of AmeriCredit
Corp, either Seller, the Servicer or the Borrower, or (B) involves any of the
Basic Agreements and the transaction contemplated thereby, or (C) involves any
material portion of the Receivables, or (D) in which a request has been made for
certification of a class action (or equivalent relief), unless, in any such
case, the Administrative Agent and the Funding Agents representing the Required
Lending Groups receive an Opinion of Counsel (which may be in-house counsel to
AmeriCredit Corp. or any of its subsidiaries), satisfactory to them in their
sole discretion, as to the status and expected outcome of such Proceedings;

     (l) Any final rulings or judgments against, or settlements by (x)
AmeriCredit Corp., either Seller, or the Servicer (and/or any affiliate or
subsidiary, other than the Borrower) for damages in excess of $2,000,000 in the
aggregate, or (y) the Borrower for damages in excess of $50,000 in the
aggregate, excluding, in either case, any such ruling or judgment that is
otherwise covered by insurance, or that, in the case of a judgment, is
discharged or stayed within 60 days;

     (m) The Administrative Agent, for any reason, fails to have a valid and
perfected first priority security interest in the Collateral;

     (n) On any Distribution Date, after giving effect to the distribution of
Available Funds, the VFN Balance (increased by the amount of any unpaid fees,
costs and expenses due and owing to the Lending Groups) as set forth in the
related Servicer's Determination Date Certificate exceeds the sum of (A) the
product of (i) the Advance Percentage with respect to Receivables then in effect
and (ii) the portion of the Pool Balance relating to Receivables as set forth in
the related Servicer's Determination Date Certificate, plus (B) the product of
                                                       ----
(i) the Advance Percentage with respect to Asset Backed Securities then in
effect and (ii) the portion of the Pool Balance relating to Asset Backed
Securities as set forth in the related Servicer's Determination Date
Certificate, and such condition remains in effect as of the next succeeding
Accounting Date;

     (o) Any Basic Agreement ceases to be in full force and effect, or any party
thereto contests the validity or enforceability thereof;

                                      49
<PAGE>

     (p) Any Hedge Counterparty fails to make any payment when due under a Hedge
Contract or the long-term debt rating of any Hedge Counterparty is below "A" by
S&P and Fitch (if rated by Fitch) or "A2" by Moody's, unless a new Hedge
Counterparty acceptable to the Administrative Agent and the Funding Agents is in
place or collateral acceptable to the Administrative Agent and the Funding
Agents has been posted within 10 Business Days;

     (q) AmeriCredit Corp. shall be a party to any transaction of merger or
consolidation in which it is not the surviving entity or shall sell all or
substantially all of its assets to another Person unless it has given prior
written notice thereof to the Administrative Agent and the Funding Agents and
the following conditions are met: (a) such surviving entity or such Person, as
the case may be, assumes the obligations of AmeriCredit Corp.; (b) the Required
Lending Groups consent in writing; and (c) the Rating Agency Condition is
satisfied;

     (r) A Change of Control shall occur with respect to AmeriCredit Corp.;

     (s) Less than 100% of the beneficial ownership interest in the Borrower is
owned by AmeriCredit Corp. or any of its Affiliates;

     (t) Without limiting any of the foregoing, the occurrence of a Servicer
Termination Event;

     (u) The Borrower shall become required to register under the Investment
Company Act of 1940, as amended, as an "investment company" (as defined in such
Act), and shall not be exempt from compliance with such Act;

     (v) The occurrence of an Insolvency Event with respect to any of
AmeriCredit Corp., either Seller or the Borrower;

     (w) The withdrawal, suspension or downgrade below "A3" of the rating on the
VFN by Moody's or below "A-" of the rating on the VFN by S&P;

     (x) the long-term senior unsecured debt rating of AmeriCredit Corp. shall
fall below "B1" by Moody's or "B-" by S&P;

     (y) The Delinquency Ratio exceeds 2.5%; or

                                      50
<PAGE>

     (z) The principal amount of any same day Funding is not repaid or
refinanced in full by the close of business on the fifth Business Day
immediately succeeding such same day Funding date.

     (aa) The withdrawal, suspension or downgrade of the rating of any Asset
Backed Security (x) referred to in clause (iv)(a) of the definition of Asset
Backed Security to "A-1" or below by S&P or to "P-2" or below by Moody's or (y)
referred to in clause (iv)(b) of the definition of Asset Backed Security to
"Aa2" or below by Moody's or to "AA" or below by S&P.

     "Third-Party Lender" means a lender other than the Sellers that has
      ------------------
originated a Receivable in connection with the sale of a Finance Vehicle and has
sold such Receivable to the Primary Seller under a Third-Party Loan Purchase
Agreement or pursuant to a Third-Party Lender Assignment and (i) who has been
approved by the Primary Seller in accordance with comparable procedures as
Dealers are approved, (ii) who will be monitored by the Primary Seller in
accordance with comparable procedures as Dealers are monitored, (iii) whose
motor vehicle installment sale contracts or installment loan contracts are
underwritten in accordance with the Seller's underwriting standards, (iv) whose
motor vehicle installment sales contracts or installment loan contracts are
serviced in accordance with the Servicer's Servicing Standards, and (v) as to
which the relevant Seller can represent and warrant that the representations and
warranties as set forth on Schedule B to the Sale and Servicing Agreement are
true and correct.

     "Third-Party Lender Assignment" means, with respect to a Receivable, the
      -----------------------------
executed assignment executed by a Third-Party Lender conveying such Receivable
to the Primary Seller, as the same may by amended, supplemented or otherwise
modified and in effect.

     "Third-Party Loan Purchase Agreement" means any agreement between a
      -----------------------------------
Third-Party Lender and the Primary Seller relating to the acquisition of
Receivables from a Third-Party Lender by the Primary Seller, as the same may be
amended, supplemented or otherwise modified and in effect.

     "Tranche" means any tranche of Commercial Paper issued by a CP Lender.
      -------

     "Treasury Entitlement" means a "Security Entitlement" as defined in 31
      --------------------
C.F.R. (S)357.2.

                                      51
<PAGE>

     "Trigger Event" has the meaning specified in Section 7.1(c) of the Security
      -------------
and Funding Agreement.

     "Trust Agreement" means the Amended and Restated Trust Agreement, dated as
      ---------------
of September 14, 2000, by and among the Trustee, AmeriCredit Financial Services,
Inc., as a co-depositor, and AmeriCredit Funding Corp. V, as a co-depositor.

     "Trustee" means Bankers Trust (Delaware), solely in its capacity as trustee
      -------
for the Borrower.

     "United States Securities Entitlement" means a Treasury Entitlement, a HUD
      ------------------------------------
Entitlement, an FHL Bank Entitlement, a Funding Corporation Entitlement, a Farm
Credit Entitlement, a Sallie Mae Entitlement or a Tennessee Valley Entitlement.

     "Unused Fee" has the meaning specified in the Fee Letter.
      ----------

     "Utilization Fee" has the meaning specified in the Fee Letter.
      ---------------

     "VFN" has the meaning specified in Section 7.1(f) of the Security and
      ---
Funding Agreement.

     "VFN Balance" means the principal amount from time to time outstanding on
      -----------
the VFN, which shall be increased by (i) the amount of each Advance made
pursuant to the Security and Funding Agreement, and (ii) the amount of each
payment of the Interest Component on Commercial Paper that is made from the
proceeds of the issuance of Commercial Paper, and which shall be decreased only
by the application of principal payments.

     "VFN Prepayment Date" means any day on which an Optional Prepayment is
      -------------------
designated by the Borrower pursuant to Section 7.1(f)(ii) of the Security and
Funding Agreement is elected.

     "VFN Repayment Date" has the meaning assigned to such term in the Security
      ------------------
and Funding Agreement.

     "Victory" means Victory Receivables Corporation, a Delaware corporation.
      -------

                                      52
<PAGE>

     "Victory Alternate Base Rate" means, for any day, a rate per annum equal to
      ---------------------------
the greater of (a) the Victory Prime Rate in effect on such day and (b) the
Federal Funds Effective Rate in effect on such day plus 0.50%. Any change in the
                                                   ----
Victory Alternate Base Rate due to a change in the Victory Prime Rate or the
Federal Funds Effective Rate shall be effective from and including the effective
date of such change in the Victory Prime Rate or the Federal Funds Effective
Rate, respectively.

     "Victory APA Bank" means any Person executing the Victory Asset Purchase
      ----------------
Agreement as a "Purchaser" thereunder or executing the Victory Liquidity
Agreement as a "Bank" thereunder, and its permitted successors and assigns in
such capacity.

     "Victory Asset Purchase Agreement" means that certain Asset Purchase
      --------------------------------
Agreement, dated as of April 27, 2001, by and among Victory, Bankers Trust
Company (as program agent and as collateral agent for Victory) and the several
financial institutions party thereto from time to time, as the same may be
amended, supplemented or otherwise modified and in effect from time to time.

     "Victory Eurodollar Rate" means, with respect to any Tranche for which the
      -----------------------
applicable rate is to be determined by reference to Victory LIBOR, a rate which
is 1.25% in excess of a rate per annum equal to the sum (rounded upwards, if
necessary, to the next higher 1/100 of 1%) of (A) the rate obtained by dividing
(i) the applicable Victory LIBOR by (ii) a percentage equal to 100% minus the
                                                                    -----
reserve percentage used for determining the maximum reserve requirement as
specified in Regulation D of the Board of Governors of the Federal Reserve
System (including, without limitation, any marginal, emergency, supplemental,
special or other reserves) that is applicable to the Victory Funding Agent
during the related Eurodollar Funding Period in respect of eurocurrency or
eurodollar funding, lending or liabilities (or, if more than one percentage
shall be so applicable, the daily average of such percentage for those days in
the related Eurodollar Funding Period during which any such percentage shall be
applicable) plus (B) the then daily net annual assessment rate (rounded upwards,
            ----
if necessary, to the nearest 1/100 of 1%) as estimated by the Victory Funding
Agent for determining the current annual assessment payable by the Victory
Funding Agent to the Federal Deposit Insurance Corporation in respect of
eurocurrency or eurodollar funding, lending or liabilities.

     "Victory Facility Limit" means $50,000,000.
      ----------------------

                                      53
<PAGE>

     "Victory Funding Agent" means The Bank of Tokyo-Mitsubishi, Ltd., New York
      ---------------------
Branch, as funding agent for the benefit of Victory and the Victory APA Banks,
and its permitted successors and assigns in such capacity.

     "Victory LIBOR" means, with respect to any Tranche funded by the Victory
      -------------
APA Banks and not based on the Victory Alternate Base Rate, for a specific
Eurodollar Funding Period, the rate for deposits in United States dollars for a
term equal to such Eurodollar Funding Period (commencing on the first day of
such Eurodollar Funding Period) which appears on Telerate Page 3750 as of 11:00
A.M. (London time) on the second Business Day prior to the commencement of such
Eurodollar Funding Period. If such rate does not appear on Telerate Page 3750,
the rate for such period shall be determined on the basis of the rates at which
deposits in United States dollars are offered by four (4) major banks in the
London interbank market, selected by the Victory Funding Agent, at approximately
11:00 A.M. (London time) on such date to prime banks in the London interbank
market for a period equal to such Eurodollar Funding Period (commencing on the
first day of the Eurodollar Funding Period). The Victory Funding Agent shall
request the principal London office of each such bank to provide a quotation of
its rate. If at least two (2) such quotations are provided, the rate for such
Eurodollar Funding Period shall be the arithmetic mean of the quotations. If
fewer than two quotations are provided as requested, the rate for such
Eurodollar Funding Period shall be the arithmetic mean of the rates quoted by
four (4) major banks in The City of New York, selected by the Victory Funding
Agent, at approximately 11:00 A.M. (New York time) on the first day of such
Eurodollar Funding Period for loans in United States dollars to leading European
banks for a period equal to such Eurodollar Funding Period (commencing on the
first day of such Eurodollar Funding Period). If at least two (2) such
quotations are provided, the rate for such Eurodollar Funding Period shall be
the arithmetic mean of the quotations. If fewer than two (2) quotations are
provided as requested, the rate for such Eurodollar Funding Period shall be the
LIBOR rate for the immediately preceding Eurodollar Funding Period.

     "Victory Liquidity Agreement" means that certain Liquidity Agreement, dated
      ---------------------------
as of April 27, 2001, by and among Victory, Bankers Trust Company (as program
agent and as collateral agent for Victory), the Victory Funding Agent and the
several financial institutions party thereto from time to time, as the same may
be amended, supplemented or otherwise modified and in effect from time to time.

     "Victory Liquidity Banks" means The Bank of Tokyo-Mitsubishi, Ltd., and
      -----------------------
each other Person providing credit, liquidity, cash collateral or asset

                                      54
<PAGE>

purchase support in respect of the commercial paper notes issued by Victory to
fund its interest in the VFN.

     "Victory Liquidity Facility" means, collectively, the Victory Asset
      --------------------------
Purchase Agreement and the Victory Liquidity Agreement.

     "Victory Prime Rate" means the rate of interest per annum publicly
      ------------------
announced from time to time by Bank of Tokyo-Mitsubishi Trust Company as its
prime rate; provided that each change in the Victory Prime Rate shall be
            --------
effective from and including the date such change is publicly announced as being
effective.

     "Victory Wind-Down Event" means that Victory, in its sole and absolute
      -----------------------
discretion, has elected not to make Advances to the Borrower with the proceeds
of Commercial Paper.

     "Weighted Average Coupon" means, as of any date of determination, the
      -----------------------
weighted average APR of the Receivables constituting the Pool Balance, or, if
the determination is being made with respect to Receivables proposed to be sold,
the weighted average APR of such Receivables, in each case, weighted based on
the aggregate outstanding Principal Balance of the relevant Receivables as of
the Reference Date or the Relevant Cutoff Date, as the case may be.

     "Weighted Average Hedge Strike Price" means with respect to the Hedge
      -----------------------------------
Contracts, as of any date of determination a percentage equivalent of a fraction
the numerator of which is the sum for each such Hedge Agreement of the notional
amount thereof times the strike rate thereof and the denominator of which is the
aggregate notional amount of all such Hedge Agreements.

     "Wind-Down Event" means an HLS Wind-Down Event, a Victory Wind-Down Event
      ---------------
or an Eiffel Wind-Down Event.

     "Yield Protection Provision" means Section 8.2 of the Security and Funding
      --------------------------
Agreement.

                                II. CONSTRUCTION

With respect to all terms defined in this Annex A and used in any Basic
Agreement:

                                      55
<PAGE>

     (a) the singular includes the plural and the plural the singular; words
importing any gender include the other gender; references to "writing" include
printing, typing, lithography, and other means of reproducing words in a visible
form; references to agreements thereto or changes therein entered into in
accordance with their respective terms and not prohibited by this Agreement;
references to Persons include their permitted successors and assigns; and the
terms "include" or "including" mean "include without limitation" or "including
without limitation";

     (b) the words "hereof," "herein," "hereunder" and words of similar import
refer to the respective Basic Agreement as a whole and not to any particular
provision thereof; Section, Schedule and Exhibit references contained in any
Basic Agreement are references to Sections, Schedules and Exhibits in or to such
Agreement unless otherwise specified;

     (c) the definitions contained in this Annex A 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.

     As used in this Annex A, in any Basic Agreement or in any instrument,
certificate or other document made or delivered pursuant hereto or thereto,
accounting terms not otherwise expressly defined have the respective meanings
given to them under GAAP as in effect on the date of the agreement, instrument
or certificate in which such term is used.

                                      56

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