Document:

Exhibit 4.2

                                                                EXECUTION COPY

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                     AMENDED AND RESTATED TRUST AGREEMENT

                                    between

                             USAA ACCEPTANCE, LLC

                                 as Depositor

                                      and

                 WACHOVIA TRUST COMPANY, NATIONAL ASSOCIATION

                               as Owner Trustee

                           Dated as of March 2, 2004

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                               Table of Contents
                                                                          Page
                                                                          ----

                                   ARTICLE I

                             DEFINITIONS AND USAGE

                                  ARTICLE II

                           ORGANIZATION OF THE TRUST

SECTION 2.1.    Name.........................................................1
SECTION 2.2.    Offices......................................................1
SECTION 2.3.    Purposes and Powers..........................................1
SECTION 2.4.    Appointment of Owner Trustee.................................2
SECTION 2.5.    Capital Contribution of Owner Trust Estate...................2
SECTION 2.6.    Declaration of Trust.........................................2
SECTION 2.7.    Liability of the Depositor and the Certificateholders........3
SECTION 2.8.    Title to Trust Property......................................3
SECTION 2.9.    Situs of Trust...............................................3
SECTION 2.10.   Representations and Warranties of the Depositor..............3
SECTION 2.11.   Federal Income Tax Matters...................................4

                                  ARTICLE III

                 TRUST CERTIFICATES AND TRANSFER OF INTERESTS

SECTION 3.1.    Initial Beneficial Ownership.................................5
SECTION 3.2.    The Certificates.............................................5
SECTION 3.3.    Authentication of Certificates...............................6
SECTION 3.4.    Registration of Certificates; Transfer and Exchange
                of Certificates..............................................6
SECTION 3.5.    Mutilated, Destroyed, Lost or Stolen Certificates............8
SECTION 3.6.    Persons Deemed Owners of Certificates........................8
SECTION 3.7.    Access to List of Certificateholders' Names and Addresses....8
SECTION 3.8.    Maintenance of Office or Agency..............................9
SECTION 3.9.    Appointment of Certificate Paying Agent......................9
SECTION 3.10.   Certain Rights of Depositor.................................10
SECTION 3.11.   Book-Entry Certificates.....................................10
SECTION 3.12.   Notices to Clearing Agency..................................11
SECTION 3.13.   Definitive Certificates.....................................11
SECTION 3.14.   Authenticating Agents.......................................11

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                                  ARTICLE IV

                           ACTIONS BY OWNER TRUSTEE

SECTION 4.1.    Prior Notice to Certificateholders with Respect to
                Certain Matters.............................................12
SECTION 4.2.    Action by Certificateholders with Respect to
                Certain Matters.............................................13
SECTION 4.3.    Action by Certificateholders with Respect to Bankruptcy.....13
SECTION 4.4.    Restrictions on Certificateholders' Power...................13
SECTION 4.5.    Majority Control............................................13

                                   ARTICLE V

                  APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

SECTION 5.1.    Establishment of Certificate Distribution Account...........13
SECTION 5.2.    Application of Trust Funds..................................14
SECTION 5.3.    Method of Payment...........................................15
SECTION 5.4.    No Segregation of Monies; No Interest.......................15
SECTION 5.5.    Accounting and Reports to Noteholders, Certificateholders,
                Internal Revenue Service and Others.........................15
SECTION 5.6.    Signature on Returns; Tax Matters Partner...................15

                                  ARTICLE VI

                     AUTHORITY AND DUTIES OF OWNER TRUSTEE

SECTION 6.1.    General Authority...........................................16
SECTION 6.2.    General Duties..............................................16
SECTION 6.3.    Action upon Instruction.....................................16
SECTION 6.4.    No Duties Except as Specified in this Agreement
                or in Instructions..........................................17
SECTION 6.5.    No Action Except Under Specified Documents or Instructions..18
SECTION 6.6.    Restrictions................................................18
SECTION 6.7.    Acceptance of Trusts and Duties.............................18
SECTION 6.8.    Furnishing of Documents.....................................19
SECTION 6.9.    Representations and Warranties..............................19
SECTION 6.10.   Reliance; Advice of Counsel.................................20
SECTION 6.11.   Not Acting in Individual Capacity...........................20
SECTION 6.12.   Owner Trustee Not Liable for Certificates or Receivables....20
SECTION 6.13.   Owner Trustee May Own Certificates and Notes................21

                                  ARTICLE VII

                  COMPENSATION AND INDEMNITY OF OWNER TRUSTEE

SECTION 7.1.    Owner Trustee's Fees and Expenses...........................21
SECTION 7.2.    Payments to Owner Trustee...................................21

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                                 ARTICLE VIII

                                  TERMINATION

SECTION 8.1.    Termination of the Trust....................................22
SECTION 8.2.    Prepayment of Certificates..................................23

                                  ARTICLE IX

            SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

SECTION 9.1.    Eligibility Requirements for Owner Trustee..................24
SECTION 9.2.    Resignation or Removal of Owner Trustee.....................24
SECTION 9.3.    Successor Owner Trustee.....................................25
SECTION 9.4.    Merger or Consolidation of Owner Trustee....................25
SECTION 9.5.    Appointment of Co-Trustee or Separate Trustee...............26
SECTION 9.6.    Compliance with Statutory Trust Statute.....................27

                                   ARTICLE X

                                 MISCELLANEOUS

SECTION 10.1.   Supplements and Amendments..................................27
SECTION 10.2.   No Legal Title to Owner Trust Estate in
                Certificateholders..........................................28
SECTION 10.3.   Limitation on Rights of Others..............................28
SECTION 10.4.   Notices.....................................................29
SECTION 10.5.   Severability................................................29
SECTION 10.6.   Separate Counterparts.......................................29
SECTION 10.7.   Successors and Assigns......................................29
SECTION 10.8.   No Petition.................................................29
SECTION 10.9.   No Recourse.................................................29
SECTION 10.10.  Headings....................................................30
SECTION 10.11.  GOVERNING LAW...............................................30

EXHIBIT A       FORM OF CLASS B CERTIFICATE................................A-1
EXHIBIT B       FORM OF CERTIFICATE OF TRUST...............................B-1

APPENDIX A      Definitions and Usage.............................Appendix A-1

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     AMENDED AND RESTATED TRUST AGREEMENT, dated as of March 2, 2004 (as from
time to time amended, supplemented or otherwise modified and in effect, this
"Agreement"), between USAA ACCEPTANCE, LLC, a Delaware limited liability
company, as Depositor, having its principal office at 9830 Colonnade Blvd.,
Suite 600, San Antonio, Texas 78230; and WACHOVIA TRUST COMPANY, NATIONAL
ASSOCIATION, a national banking association (the "Bank"), not in its
individual capacity but solely as trustee under this Agreement (in such
capacity, the "Owner Trustee"), having its principal corporate trust office at
One Rodney Square, 920 King Street, 1st Floor, Wilmington, Delaware 19801 for
the purpose of establishing the USAA Auto Owner Trust 2004-1.

     WHEREAS, the parties hereto intend to amend and restate that certain
Trust Agreement, dated as of February 20, 2004, between the Depositor and the
Owner Trustee, on the terms and conditions hereinafter set forth.

     NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained, the receipt and sufficiency of which are hereby
acknowledged, the Depositor and the Owner Trustee hereby agree as follows:

                                  ARTICLE I

                             DEFINITIONS AND USAGE

     Except as otherwise specified herein or as the context may otherwise
require, capitalized terms used but not otherwise defined herein are defined
in Appendix A hereto, which also contains rules as to usage that shall be
applicable herein.

                                  ARTICLE II

                           ORGANIZATION OF THE TRUST

     SECTION 2.1 Name. The Trust continued hereby shall be known as "USAA Auto
Owner Trust 2004-1", in which name the Owner Trustee may conduct the business
of the Trust, make and execute contracts and other instruments on behalf of
the Trust and sue and be sued on behalf of the Trust.

     SECTION 2.2. Offices. The office of the Trust shall be in care of the
Owner Trustee at the Corporate Trust Office or at such other address in the
State of Delaware as the Owner Trustee may designate by written notice to the
Certificateholders and the Depositor.

     SECTION 2.3. Purposes and Powers. (a) The purpose of the Trust is, and
the Trust shall have the power and authority, to engage in the following
activities:

          (i) to acquire, hold and manage the Trust Property;

          (ii) to issue the Notes pursuant to the Indenture, and the
     Certificates pursuant to this Agreement, and to sell the Notes and the
     Certificates upon the written order of the Depositor;

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          (iii) in exchange for the Notes and the Certificates, to acquire the
     Receivables and funds in the amount of the Reserve Initial Deposit, to
     pay the organizational, start-up and transactional expenses of the Trust,
     and to pay the balance to the Depositor pursuant to the Sale and
     Servicing Agreement;

          (iv) to pay interest on and principal of the Notes and interest and
     distributions on the Certificates;

          (v) to Grant the Owner Trust Estate (other than the Certificate
     Distribution Account and the proceeds thereof) to the Indenture Trustee
     pursuant to the Indenture;

          (vi) to enter into and perform its obligations under the Basic
     Documents to which it is to be a party;

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

          (viii) subject to compliance with the Basic Documents, to engage in
     such other activities as may be required in connection with conservation
     of the Owner Trust Estate and the making of interest and principal
     payments to the Noteholders and interest payments and distributions to
     the Certificateholders.

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

     SECTION 2.4. Appointment of Owner Trustee. Upon the execution of this
Agreement, the Owner Trustee shall continue as trustee of the Trust, to have
all the rights, powers and duties set forth herein.

     SECTION 2.5. Capital Contribution of Owner Trust Estate. As of February
20, 2004, the Depositor sold, assigned and transferred to the Owner Trustee
the sum of $1. The Owner Trustee hereby acknowledges receipt in trust from the
Depositor, as of such date, the foregoing contribution, which shall constitute
the initial Owner Trust Estate and shall be deposited in the Certificate
Distribution Account. The Depositor shall pay the organizational expenses of
the Trust as they may arise or shall, upon the request of the Owner Trustee,
promptly reimburse the Owner Trustee for any such expenses paid by the Owner
Trustee. On the Closing Date, the Depositor shall convey to the Trust the
Trust Property and the Reserve Initial Deposit and the Owner Trustee shall
cause the delivery to or upon the order of the Depositor the Notes and the
Certificates.

     SECTION 2.6. Declaration of Trust. The Owner Trustee hereby declares that
it will hold the Owner Trust Estate in trust upon and subject to the
conditions set forth herein for the use and benefit of the Certificateholders,
subject to the obligations of the Trust under the Basic Documents. It is the
intention of the parties hereto that (i) the Trust constitute a statutory
trust under the Statutory Trust Statute and that this Agreement constitute the
governing instrument of such statutory trust and (ii) for income and franchise
tax purposes, the Trust shall be treated as a

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partnership, with the assets of the partnership being the Receivables and
other assets held by the Trust, the partners of the partnership being the
Certificateholders and the Depositor, and the Notes constituting indebtedness
of the partnership. The parties agree that, unless otherwise required by the
appropriate tax authorities, the Trust will file or cause to be filed annual
or other necessary returns, reports and other forms consistent with the
characterization of the Trust as a partnership for such tax purposes.
Effective as of the date hereof, the Owner Trustee shall have all rights,
powers and duties set forth herein and in the Statutory Trust Statute with
respect to accomplishing the purposes of the Trust. The Owner Trustee has
filed the Certificate of Trust with the Secretary of State.

     SECTION 2.7. Liability of the Depositor and the Certificateholders.
Neither the Depositor (except as otherwise provided herein) nor any
Certificateholder shall have any personal liability for any liability or
obligation of the Trust.

     SECTION 2.8. Title to Trust Property. Legal title to the entirety of the
Owner Trust Estate shall be vested at all times in the Trust as a separate
legal entity, except where applicable law in any jurisdiction requires title
to any part of the Owner Trust Estate to be vested in a trustee or trustees,
in which case title shall be deemed to be vested in the Owner Trustee, a
co-trustee and/or a separate trustee, as the case may be.

     SECTION 2.9. Situs of Trust. The Trust shall be administered by the Owner
Trustee in the State of Delaware. All bank accounts maintained by the Owner
Trustee on behalf of the Trust shall be located in the State of Delaware or
the State of New York. The Trust shall not have any employees in any state
other than the State of Delaware; provided, however, that nothing herein shall
restrict or prohibit the Bank, the Depositor or the Owner Trustee from having
employees within or without the State of Delaware. Payments will be received
by the Trust only in Delaware or New York, and payments will be made by the
Trust only from Delaware or New York. The principal office of the Trust shall
be in care of the Owner Trustee in the State of Delaware.

     SECTION 2.10. Representations and Warranties of the Depositor. The
Depositor hereby represents and warrants to the Owner Trustee that:

     (a) The Depositor is duly formed and validly existing as a limited
liability company in good standing 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 presently conducted.

     (b) The Depositor has the power and authority to execute and deliver this
Agreement and to carry out its terms, and the Depositor has full power and
authority to sell and assign the property to be sold and assigned to, and
deposited with, the Trust, and the Depositor has duly authorized such sale and
assignment and deposit to the Trust by all necessary limited liability company
action; and the execution, delivery and performance of this Agreement has been
duly authorized by the Depositor by all necessary limited liability company
action.

     (c) The Depositor has duly executed and delivered this Agreement, and
this Agreement constitutes a legal, valid and binding obligation of the
Depositor, enforceable against

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the Depositor, in accordance with its terms, except as enforceability may be
limited by bankruptcy, insolvency, reorganization and other similar laws
affecting the enforcement of creditors' rights in general and by general
equitable principles, regardless of whether such enforceability is considered
in a proceeding at law or in equity.

     (d) The consummation of the transactions contemplated by this Agreement
and the fulfillment of the terms hereof do not (i) conflict with, result in
any breach of any of the terms and provisions of, or constitute (with or
without notice or lapse of time or both) a default under, the limited
liability company agreement of the Depositor, or any indenture, agreement or
other instrument to which the Depositor is a party or by which it is bound,
(ii) result in the creation or imposition of any Lien upon any of its
properties pursuant to the terms of any such indenture, agreement or other
instrument (other than pursuant to the Basic Documents) or (iii) violate any
law or, to the best of the Depositor's knowledge, any order, rule or
regulation applicable to the Depositor of any court or of any federal or state
regulatory body, administrative agency or other governmental instrumentality
having jurisdiction over the Depositor or its properties.

     (e) There are no proceedings or investigations pending or, to the
Depositor's best knowledge, threatened before any court, regulatory body,
administrative agency or other governmental instrumentality having
jurisdiction over the Depositor or its properties (i) asserting the invalidity
of this Agreement, the Indenture, any of the other Basic Documents, the Notes
or the Certificates, (ii) seeking to prevent the issuance of the Notes or the
Certificates or the consummation of any of the transactions contemplated by
this Agreement, the Indenture or any of the other Basic Documents, (iii)
seeking any determination or ruling that might materially and adversely affect
the performance by the Depositor of its obligations under, or the validity or
enforceability of, this Agreement or (iv) which might adversely affect the
federal income tax attributes, or Applicable Tax State franchise or income tax
attributes, of the Notes and the Certificates.

     SECTION 2.11. Federal Income Tax Matters. The Certificateholders
acknowledge that it is their intent and that they understand it is the intent
of the Depositor and the Servicer that, for purposes of federal income, state
and local income and franchise tax and any other income taxes, the Trust will
be treated as a partnership and the Certificateholders and the Depositor will
be treated as partners in that partnership. The Depositor hereby agrees and
the Certificateholders by acceptance of a Certificate agree to such treatment
and each agrees to take no action inconsistent with such treatment. For
purposes of federal income, State and local income and franchise tax and any
other income taxes each month:

          (a) gross ordinary income of the Trust for such month as determined
     for federal income tax purposes shall be allocated among the
     Certificateholders as of the Record Date occurring within such month, in
     proportion to their ownership of the Certificate Balance on such date, in
     an amount up to the sum of (i) the Accrued Class B Certificate Interest,
     (ii) the portion of the market discount on the Receivables accrued during
     such month that is allocable to the excess, if any, of the aggregate
     Initial Certificate Balance over the initial aggregate issue price of the
     Certificates, (iii) prepayment premium payable to the Certificateholders
     for such month and (iv) any other amounts of income payable to the
     Certificateholders for such month; and

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          (b) thereafter all remaining net income of the Trust (subject to the
     modifications set forth below) for such month as determined for federal
     income tax purposes (and each item of income, gain, credit, loss or
     deduction entering into the computation thereof) shall be allocated to
     the Depositor, to the extent thereof.

If the gross ordinary income of the Trust for any month is insufficient for
the allocations described in paragraph (a) above, subsequent gross ordinary
income shall first be allocated to make up such shortfall before any
allocation pursuant to paragraph (b) above. Net losses of the Trust, if any,
for any month as determined for federal income tax purposes (and each item of
income, gain, credit, loss or deduction entering into the computation thereof)
shall be allocated to the Depositor to the extent the Depositor is reasonably
expected to bear the economic burden of such net losses, and any remaining net
losses shall be allocated among the Certificateholders as of the Record Date
occurring within such month in proportion to their ownership of the
Certificate Balance on such Record Date. The Trust is authorized to modify the
allocations in this paragraph if necessary or appropriate, in its sole
discretion, for the allocations to fairly reflect the economic income, gain or
loss to the Certificateholders, or as otherwise required by the Code.

                                 ARTICLE III

                 TRUST CERTIFICATES AND TRANSFER OF INTERESTS

     SECTION 3.1. Initial Beneficial Ownership. Upon the formation of the
Trust by the contribution by the Depositor pursuant to Section 2.5 and until
the issuance of the Certificates, the Depositor shall be the sole beneficial
owner of the Trust.

     SECTION 3.2. The Certificates. (a) The Certificates shall be issued as
Book-Entry Certificates, substantially in the form set forth in Exhibit A, in
minimum denominations of $1,000 and in integral multiples of $1,000 in excess
thereof.

     (b) The Certificates shall be executed on behalf of the Trust by the
Owner Trustee by manual or facsimile signature of an authorized officer of the
Owner Trustee. Certificates bearing the manual or facsimile signatures of
individuals who were, at the time when such signatures shall have been
affixed, authorized to sign on behalf of the Owner Trustee, shall be validly
issued and entitled to the benefit of this Agreement, notwithstanding that
such individuals or any of them shall have ceased to be so authorized prior to
the authentication and delivery of such Certificates or did not hold such
offices at the date of authentication and delivery of such Certificates.

     (c) A transferee of a Certificate shall become a Certificateholder, and
shall be entitled to the rights and subject to the obligations of a
Certificateholder hereunder upon such transferee's acceptance of a Certificate
duly registered in such transferee's name pursuant to Section 3.4.

     (d) Plans and persons investing on behalf of or with "plan assets" of
Plans may not acquire the Certificates. An insurance company using the assets
of its general account may purchase the Certificates if:

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          (i) such insurance company is able to represent that, as of the date
     it acquires an interest in the Certificates, less than 25% of the assets
     of such general account constitute "plan assets" for purposes of Title I
     of ERISA and Section 4975 of the Code; and

          (ii) such insurance company agrees that if at any time during any
     calendar quarter while it is holding an interest in the Certificates, 25%
     or more of the assets of such general account constitute "plan assets"
     for purposes of Title I of ERISA and Section 4975 of the Code, and, at
     that time, if no exemption or exception applies to the continued holding
     of the Certificates under ERISA, by the end of the next quarter such
     insurance company will dispose of the Certificates then held in its
     general account by the end of the next calendar quarter.

     SECTION 3.3. Authentication of Certificates. Concurrently with the
initial sale of the Receivables to the Trust pursuant to the Sale and
Servicing Agreement, the Owner Trustee shall cause the Certificates, in an
aggregate principal balance equal to the Initial Certificate Balance, to be
executed on behalf of the Trust, authenticated and delivered to or upon the
written order of the Depositor, without further action by the Depositor, in
authorized denominations. No Certificate shall entitle its Certificateholder
to any benefit under this Agreement, or shall be valid for any purpose, unless
there shall appear on such Certificate a certificate of authentication
substantially in the form set forth in Exhibit A hereto, executed by the Owner
Trustee by manual signature; such authentication shall constitute conclusive
evidence that such Certificate shall have been duly authenticated and
delivered hereunder. All Certificates shall be dated the date of their
authentication.

     SECTION 3.4. Registration of Certificates; Transfer and Exchange of
Certificates. (a) The Certificate Registrar shall keep or cause to be kept, at
the office or agency maintained pursuant to Section 3.8, a Certificate
Register in which, subject to such reasonable regulations as it may prescribe,
the Trust shall provide for the registration of Certificates and of transfers
and exchanges of Certificates as herein provided. The Owner Trustee shall be
the initial Certificate Registrar. No transfer of a Certificate shall be
recognized except upon registration of such transfer in the Certificate
Register.

     (b) With respect to each transfer of a Certificate, the prospective
transferee Certificate Owner shall be deemed to represent the following:

          (i) It is either:

          (A) not, and each account (if any) for which it is
          purchasing the Certificates is not (1) an employee benefit
          plan, as defined in Section 3(3) of ERISA, that is subject
          to Title I of ERISA, (2) a plan described in Section
          4975(e)(1) of the Code that is subject to Section 4975 of
          the Code, (3) a governmental plan, as defined in Section
          3(32) of ERISA, subject to any federal, State or local law
          which is, to a material extent, similar to the provisions of
          Section 406 of ERISA or Section 4975 of the Code, (4) an
          entity whose underlying assets include plan assets by reason
          of a plan's investment in the entity (within the meaning of
          Department of Labor Regulation 29 C.F.R. Section 2510.3-101
          or otherwise under ERISA) or (5)

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          a person investing "plan assets" of any such plan (including
          without limitation, for purposes of this clause (5), an insurance
          company general account, but excluding any entity registered
          under the Investment Company Act of 1940, as amended); or

          (B) an insurance company acting on behalf of a general
          account and (1) on the date of purchase less than 25% of the
          assets of such general account (as reasonably determined by
          it) constitute "plan assets" for purposes of Title I of
          ERISA and Section 4975 of the Code, (2) the purchase and
          holding of such Certificates are eligible for exemptive
          relief under Sections (I) and (III) of Prohibited
          Transaction Class Exemption 95-60, and (3) the purchaser
          agrees that if, after the purchaser's initial acquisition of
          the Certificates, at any time during any calendar quarter
          25% or more of the assets of such general account (as
          reasonably determined by it no less frequently than each
          calendar quarter) constitute "plan assets" for purposes of
          Title I of ERISA or Section 4975 of the Code and no
          exemption or exception from the prohibited transaction rules
          applies to the continued holding of the Certificates under
          Section 401(c) of ERISA and the final regulations thereunder
          or under an exemption or regulation issued by the United
          States Department of Labor under ERISA, it will dispose of
          all Certificates then held in its general account by the end
          of the next following calendar quarter.

          (ii) It is, and each account (if any) for which it is purchasing
     Certificates is, a Person who is (A) a citizen or resident of the United
     States, (B) a corporation or partnership organized in or under the laws
     of the United States, any state thereof or the District of Columbia, (C)
     an estate the income of which is includible gross income for United
     States tax purposes, regardless of its source, (D) a trust with respect
     to which a U.S. court is able to exercise primary supervision over the
     administration of such trust and one or more Persons meeting the
     conditions of clause (A), (B), (C) or (E) of this paragraph (ii) has the
     authority to control all substantial decisions of the trust or (E) a
     Person not described in clauses (A) through (D) above whose ownership of
     Certificates is effectively connected with such Person's conduct of a
     trade or business within the United States (within the meaning of the
     Code) and who provides the Owner Trustee and the Depositor with an IRS
     Form W-8 ECI (and such other certifications, representations, or opinions
     of counsel as may be requested by the Owner Trustee or the Depositor).

          (iii) It understands that any purported transfer of any Certificate
     (or any interest therein) to any Person who does not meet the conditions
     of paragraphs (i) and (ii) above shall be, to the fullest extent
     permitted by law, void ab initio, and the purported transferee in such a
     transfer shall not be recognized by the Trust or any other Person as a
     Certificateholder for any purpose.

     (c) Upon surrender for registration of transfer of any Certificate at the
office or agency maintained pursuant to Section 3.8 and upon compliance with
any provisions of this Agreement relating to such transfer, the Owner Trustee
shall execute, authenticate and deliver, in the name of the designated
transferee or transferees, one or more new Certificates in authorized
denominations and aggregate amount dated the date of authentication by the
Owner Trustee or

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any authenticating agent. At the option of a Certificateholder, Certificates
may be exchanged for other Certificates of authorized denominations and
aggregate amount upon surrender of the Certificates to be exchanged at the
office or agency maintained pursuant to Section 3.8.

     Every Certificate presented or surrendered for registration of transfer
or exchange shall be accompanied by a written instrument of transfer in form
satisfactory to the Owner Trustee and the Certificate Registrar, duly executed
by the related Certificateholder or such Certificateholder's attorney duly
authorized in writing, with such signature guaranteed by a member firm of the
New York Stock Exchange or a commercial bank or trust company. Each
Certificate surrendered for registration of transfer or exchange shall be
cancelled and subsequently disposed of by the Certificate Registrar in
accordance with its customary practice.

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

     The preceding provisions of this Section 3.4 notwithstanding, the Owner
Trustee shall not make and the Certificate Registrar need not register any
transfer or exchange of Certificates for a period of fifteen (15) days
preceding any Payment Date for any payment with respect to the Certificates.

     SECTION 3.5. Mutilated, Destroyed, Lost or Stolen Certificates. If (a)
any mutilated Certificate shall be surrendered to the Certificate Registrar,
or if the Certificate Registrar shall receive evidence to its satisfaction of
the destruction, loss or theft of any Certificate and (b) there shall be
delivered to the Certificate Registrar and the Owner Trustee such security or
indemnity as may be required by them to save each of them harmless, then, in
the absence of notice that such Certificate has been acquired by a protected
purchaser, the Owner Trustee on behalf of the Trust shall execute and the
Owner Trustee shall authenticate and deliver, in exchange for, or in lieu of,
any such mutilated, destroyed, lost or stolen Certificate, a new Certificate,
of like tenor and denomination. In connection with the issuance of any new
Certificate under this Section 3.5, the Owner Trustee or the Certificate
Registrar may require the payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection therewith. Any
duplicate Certificate issued pursuant to this Section 3.5 shall constitute
conclusive evidence of ownership in the Trust, as if originally issued,
whether or not the lost, stolen or destroyed Certificate shall be found at any
time.

     SECTION 3.6. Persons Deemed Owners of Certificates. Prior to due
presentation of a Certificate for registration of transfer, the Owner Trustee,
the Certificate Registrar or any Certificate Paying Agent may treat the Person
in whose name any Certificate is registered in the Certificate Register as the
owner of such Certificate for the purpose of receiving interest or
distributions pursuant to this Agreement and for all other purposes
whatsoever, and none of the Owner Trustee, the Certificate Registrar or any
Certificate Paying Agent shall be bound by any notice to the contrary.

     SECTION 3.7. Access to List of Certificateholders' Names and Addresses.
The Owner Trustee shall furnish or cause to be furnished to the Servicer, the
Certificate Paying Agent

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and the Depositor, or to the Indenture Trustee, within fifteen (15) days after
receipt by the Owner Trustee of a written request therefor from the Servicer,
the Certificate Paying Agent or the Depositor, or the Indenture Trustee, as
the case may be, a list, in such form as the requesting party may reasonably
require, of the names and addresses of the Certificateholders as of the most
recent Record Date. The Certificate Registrar shall also furnish to the Owner
Trustee and the Paying Agent a copy of such list at any time there is a change
therein. If three or more Certificateholders or one or more holders of
Certificates evidencing not less than 25% of the Certificate Balance apply in
writing to the Owner Trustee, and such application states that the applicants
desire to communicate with other Certificateholders with respect to their
rights under this Agreement or under the Certificates and such application is
accompanied by a copy of the communication that such applicants propose to
transmit, then the Owner Trustee shall, within five (5) Business Days after
the receipt of such application, afford such applicants access during normal
business hours to the current list of Certificateholders. Each
Certificateholder, by receiving and holding a Certificate, shall be deemed to
have agreed not to hold any of the Depositor, the Certificate Registrar or the
Owner Trustee accountable by reason of the disclosure of its name and address,
regardless of the source from which such information was derived.

     SECTION 3.8. Maintenance of Office or Agency. The Owner Trustee shall
maintain in the State of Delaware, an office or offices or agency or agencies
where Certificates may be surrendered for registration of transfer or exchange
and where notices and demands to or upon the Owner Trustee in respect of the
Certificates and the Basic Documents may be served. The Owner Trustee
initially designates its Corporate Trust Office as its principal corporate
trust office for such purposes. The Owner Trustee shall give prompt written
notice to the Depositor and to the Certificateholders of any change in the
location of the Certificate Register or any such office or agency.

     SECTION 3.9. Appointment of Certificate Paying Agent. The Certificate
Paying Agent shall make distributions to Certificateholders from the
Certificate Distribution Account pursuant to Section 5.2 and shall report the
amounts of such distributions to the Owner Trustee. Any Certificate Paying
Agent shall have the revocable power to withdraw funds from the Certificate
Distribution Account for the purpose of making the distributions referred to
above. The Owner Trustee may revoke such power and remove the Certificate
Paying Agent if the Owner Trustee determines in its sole discretion that the
Certificate Paying Agent shall have failed to perform its obligations under
this Agreement in any material respect. The Certificate Paying Agent shall
initially be the Owner Trustee. The Certificate Paying Agent shall be
permitted to resign as Certificate Paying Agent upon thirty (30) days' written
notice to the Owner Trustee. In the event that the Owner Trustee shall no
longer be the Certificate Paying Agent, the Owner Trustee shall appoint a
successor to act as Certificate Paying Agent (which shall be a bank or trust
company). The Owner Trustee shall cause such successor Certificate Paying
Agent to execute and deliver to the Owner Trustee an instrument in which such
successor Certificate Paying Agent shall agree with the Owner Trustee that as
Certificate Paying Agent, such successor Certificate Paying Agent will hold
all sums, if any, held by it for payment to the Certificateholders in trust
for the benefit of the Certificateholders entitled thereto until such sums
shall be paid to such Certificateholders. The Certificate Paying Agent shall
return all unclaimed funds to the Owner Trustee and upon removal of a
Certificate Paying Agent such Certificate Paying Agent shall also return all
funds in its possession to the Owner Trustee. The provisions of Sections 6.7,
6.9, 6.10, 7.1 and 7.2 shall apply to the Certificate Paying Agent. The Owner

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<PAGE>

Trustee may appoint a co-paying agent. Any reference in this Agreement to the
Certificate Paying Agent shall include any co-paying agent appointed by the
Owner Trustee unless the context requires otherwise.

     SECTION 3.10. Certain Rights of Depositor. The Depositor shall be
entitled to any amounts not needed on any Payment Date to make payments on the
Notes or the Certificates or to make deposits to the Reserve Account pursuant
to Section 4.6 of the Sale and Servicing Agreement, and to receive amounts
remaining in the Reserve Account following the payment in full of the
aggregate principal amount of the Notes and the Certificate Balance and of all
other amounts owing or to be distributed hereunder or under the Indenture or
the Sale and Servicing Agreement to Noteholders and Certificateholders and the
termination of the Trust. The Depositor may not transfer any such rights
unless (i) the Owner Trustee and the Indenture Trustee shall have received an
Opinion of Counsel that such transfer shall not cause the Trust to be
classified as an association (or publicly traded partnership) taxable as a
corporation, (ii) the transferee agrees in writing to take positions for
federal income tax purposes consistent with the federal income tax positions
previously taken by the Depositor and (iii) the Rating Agency Condition is
satisfied.

     SECTION 3.11. Book-Entry Certificates. The Certificates, upon original
issuance, shall be issued in the form of typewritten Certificate or
Certificates representing the Book-Entry Certificates, to be delivered to The
Depository Trust Company, the initial Clearing Agency, by, or on behalf of,
the Trust. The Book-Entry Certificate or Certificates shall be registered
initially on the Certificate Register in the name of Cede & Co., the nominee
of the initial Clearing Agency, and no Certificate Owner thereof shall receive
a Definitive Certificate (as defined below) representing such Certificate
Owner's beneficial interest in such Certificate, except as provided in Section
3.13. Unless and until definitive, fully registered Certificates (the
"Definitive Certificates") have been issued to Certificate Owners pursuant to
Section 3.13:

          (i) the provisions of this Section 3.11 shall be in full force and
     effect;

          (ii) the Certificate Registrar and the Owner Trustee shall be
     entitled to deal with the Clearing Agency for all purposes of this
     Agreement (including the payment of interest and distributions on the
     Book-Entry Certificates and the giving of instructions or directions
     hereunder) as the sole Certificateholder, and shall have no obligation to
     the Certificate Owners;

          (iii) to the extent that the provisions of this Section 3.11
     conflict with any other provisions of this Agreement, the provisions of
     this Section 3.11 shall control;

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

          (v) the initial Clearing Agency shall make book-entry transfers
     among the Clearing Agency Participants and receive and transmit payments
     of principal of and interest on the Book-Entry Certificates to such
     Clearing Agency Participants; and

                                      10
<PAGE>

          (vi) whenever this Agreement requires or permits actions to be taken
     based upon instructions or directions of holders of Certificates
     evidencing a specified percentage of the Certificate Balance, the
     Clearing Agency shall be deemed to represent such percentage only to the
     extent that it has received instructions to such effect from Certificate
     Owners and/or Clearing Agency Participants owning or representing,
     respectively, such required percentage of the beneficial interest in the
     Certificate Balance and has delivered such instructions to the Owner
     Trustee.

     SECTION 3.12. Notices to Clearing Agency. Whenever a notice or other
communication to the holders of Certificates is required under this Agreement,
unless and until Definitive Certificates shall have been issued to the
Certificate Owners pursuant to Section 3.13, the Owner Trustee shall give all
such notices and communications specified herein to be given to holders of
Certificates to the Clearing Agency, and shall have no obligation to such
Certificate Owners.

     SECTION 3.13. Definitive Certificates. With respect to any Book-Entry
Certificates, if (i) the Administrator advises the Owner Trustee in writing
that the Clearing Agency is no longer willing or able to properly discharge
its responsibilities with respect to such Book-Entry Certificates and the
Administrator is unable to locate a qualified successor, (ii) the
Administrator, at its option, advises the Owner Trustee in writing that it
elects to terminate the book-entry system through the Clearing Agency or (iii)
after the occurrence of an Event of Default or an Event of Servicing
Termination, Certificate Owners with respect to Book-Entry Certificates
evidencing beneficial interests aggregating not less than a majority of the
Certificate Balance advise the Owner Trustee and the Clearing Agency in
writing that the continuation of a book-entry system through the Clearing
Agency is no longer in the best interests of the Certificate Owners, then the
Clearing Agency shall notify all Certificate Owners and the Owner Trustee of
the occurrence of such event and of the availability of Definitive
Certificates to the Certificate Owners. Upon surrender to the Owner Trustee of
the typewritten Certificate or Certificates representing the Book-Entry
Certificates by the Clearing Agency, accompanied by registration instructions,
the Owner Trustee shall execute, authenticate and deliver the Definitive
Certificates in accordance with the written instructions of the Clearing
Agency. None of the Trust, the Certificate Registrar or the Owner Trustee
shall be liable for any delay in delivery of such instructions and may
conclusively rely on, and shall be protected in relying on, such instructions.
Upon the issuance of Definitive Certificates to Certificate Owners, the Owner
Trustee shall recognize the holders of such Definitive Certificates as
Certificateholders.

     SECTION 3.14. Authenticating Agents. (a) The Owner Trustee may appoint
one or more Persons (each, an "Authenticating Agent") with power to act on its
behalf and subject to its direction in the authentication of Certificates in
connection with issuance, transfers and exchanges under Sections 3.3, 3.4 and
3.5, as fully to all intents and purposes as though each such Authenticating
Agent had been expressly authorized by those Sections to authenticate such
Certificates. For all purposes of this Agreement, the authentication of
Certificates by an Authenticating Agent pursuant to this Section 3.14 shall be
deemed to be the authentication of Certificates "by the Owner Trustee."

     (b) Any corporation into which any Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger,

                                      11
<PAGE>

consolidation or conversion to which any Authenticating Agent shall be a
party, or any corporation succeeding to all or substantially all of the
corporate trust business of any Authenticating Agent, shall be the successor
of such Authenticating Agent hereunder, without the execution or filing of any
further act on the part of the parties hereto or such Authenticating Agent or
such successor corporation.

     (c) Any Authenticating Agent may at any time resign by giving written
notice of resignation to the Owner Trustee and the Depositor. The Owner
Trustee may at any time terminate the agency of any Authenticating Agent by
giving written notice of termination to such Authenticating Agent, the
Servicer and the Depositor. Upon receiving such notice of resignation or upon
such a termination, the Owner Trustee may appoint a successor Authenticating
Agent and shall give written notice of any such appointment to the Depositor
and the Servicer.

     (d) The Servicer, pursuant to the Sale and Servicing Agreement, agrees to
pay to each Authenticating Agent from time to time reasonable compensation for
its services. The provisions of Section 6.4 shall be applicable to any
Authenticating Agent.

                                  ARTICLE IV

                           ACTIONS BY OWNER TRUSTEE

     SECTION 4.1. Prior Notice to Certificateholders with Respect to Certain
Matters. It is the intention of the Depositor and the Certificateholders that
the powers and duties of the Owner Trustee are ministerial only and that any
non-ministerial action (including the taking of any legal action) may only be
taken by the Owner Trustee in accordance with this Section 4.1. With respect
to the following matters, the Owner Trustee shall not take action unless, (i)
at least thirty (30) days before the taking of such action, the Owner Trustee
shall have notified the Certificateholders of record as of the preceding
Record Date and the Rating Agencies in writing of the proposed action and (ii)
Certificateholders holding not less than a majority of the Certificate Balance
shall not have notified the Owner Trustee in writing prior to the 30th day
after such notice is given that such Certificateholders have withheld consent
or provided alternative direction:

     (a) the initiation of any material claim or lawsuit by the Trust (except
claims or lawsuits brought by the Servicer in connection with the collection
of the Receivables) and the settlement of any material action, claim or
lawsuit brought by or against the Trust (except with respect to the
aforementioned claims or lawsuits for collection by the Servicer of the
Receivables);

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

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

     (d) the amendment of the Indenture by a supplemental indenture in
circumstances where the consent of any Noteholder is not required and such
amendment would materially adversely affect the interests of the
Certificateholders; or

                                      12
<PAGE>

     (e) the amendment, change or modification of the Sale and Servicing
Agreement or the Administration Agreement, except to cure any ambiguity or to
amend or supplement any provision in a manner or to add any provision that
would not materially adversely affect the interests of the Certificateholders.

     SECTION 4.2. Action by Certificateholders with Respect to Certain
Matters. The Owner Trustee may not, except upon the occurrence of an Event of
Servicing Termination subsequent to the payment in full of the Notes and in
accordance with the written direction of Certificateholders holding not less
than a majority of the Certificate Balance, (a) remove the Servicer under the
Sale and Servicing Agreement pursuant to Article VII thereof, (b) appoint a
successor Servicer pursuant to Article VII of the Sale and Servicing
Agreement, (c) remove the Administrator under the Administration Agreement
pursuant to Section 9 thereof or (d) appoint a successor Administrator
pursuant to Section 9 of the Administration Agreement.

     SECTION 4.3. Action by Certificateholders with Respect to Bankruptcy. The
Owner Trustee shall not have the power to commence a voluntary proceeding in
bankruptcy relating to the Trust unless the Notes have been paid in full and
each Certificateholder (other than the Depositor) approves of such
commencement in advance and delivers to the Owner Trustee a certificate
certifying that such Certificateholder reasonably believes that the Trust is
insolvent.

     SECTION 4.4. Restrictions on Certificateholders' Power. The
Certificateholders shall not direct the Owner Trustee to take or to refrain
from taking any action if such action or inaction would be contrary to any
obligation of the Trust or the Owner Trustee under this Agreement or any of
the other Basic Documents or would be contrary to Section 2.3, nor shall the
Owner Trustee be obligated to follow any such direction, if given.

     SECTION 4.5. Majority Control. Except as expressly provided herein, any
action that may be taken by the Certificateholders under this Agreement may be
taken by the Certificateholders holding not less than a majority of the
Certificate Balance. Except as expressly provided herein, any written notice
of the Certificateholders delivered pursuant to this Agreement shall be
effective if signed by holders of Certificates evidencing not less than a
majority of the Certificate Balance at the time of the delivery of such
notice.

                                  ARTICLE V

                  APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

     SECTION 5.1. Establishment of Certificate Distribution Account. Pursuant
to Section 4.1(c) of the Sale and Servicing Agreement, there has been
established and there shall be maintained an Eligible Deposit Account, in the
name of the Trust, initially at the corporate trust department of the Bank,
which shall be designated as the "Certificate Distribution Account." Except as
expressly provided in Section 3.9, the Certificate Distribution Account shall
be under the sole dominion and control of the Owner Trustee. All monies
deposited from time to time in the Certificate Distribution Account pursuant
to the Sale and Servicing Agreement shall be applied as provided in the Basic
Documents. In the event that the Certificate Distribution Account is no longer
to be maintained at the corporate trust department of the Bank, the Servicer
shall, with the Owner Trustee's assistance as necessary, cause an Eligible
Account to be

                                      13
<PAGE>

established as the Certificate Distribution Account within ten (10) Business
Days (or such longer period not to exceed thirty (30) days as to which each
Rating Agency may consent). The Certificate Distribution Account shall be
established and maintained pursuant to an account agreement which specifies
New York law as the governing law.

     SECTION 5.2. Application of Trust Funds. (a) On each Payment Date, the
Owner Trustee shall, based on the information contained in the Servicer's
Certificate delivered on the relevant Determination Date pursuant to Section
3.9 of the Sale and Servicing Agreement withdraw the amounts deposited into
the Certificate Distribution Account pursuant to Sections 4.6(c) (if
applicable) and 4.6(d) of the Sale and Servicing Agreement or, if applicable,
Section 5.4(b) of the Indenture on or prior to such Payment Date and make or
cause to be made distributions and payments in the following order of
priority:

          (i) first, to the Certificateholders, an amount equal to the Accrued
     Class B Certificate Interest, provided that if there are not sufficient
     funds available to pay the entire amount of the Accrued Class B
     Certificate Interest, the amounts available shall be applied to the
     payment of such interest on the Certificates on a pro rata basis; and

          (ii) second, to the Certificateholders in reduction of the
     Certificate Balance, until the Certificate Balance has been reduced to
     zero; provided that if there are not sufficient funds available to reduce
     the Certificate Balance to zero, the amounts available shall be applied
     among Certificateholders to the reduction of the Certificate Balance on a
     pro rata basis.

     (b) On each Payment Date, the Owner Trustee shall, or shall cause the
Certificate Paying Agent to, send to each Certificateholder as of the related
Record Date the statement provided to the Owner Trustee by the Servicer
pursuant to Section 4.9 of the Sale and Servicing Agreement with respect to
such Payment Date.

     (c) In the event that any withholding tax is imposed on the Trust's
payment (or allocations of income) to a Certificateholder, such tax shall
reduce the amount otherwise distributable to such Certificateholder in
accordance with this Section 5.2. The Owner Trustee and each Certificate
Paying Agent is hereby authorized and directed to retain from amounts
otherwise distributable to the Certificateholders sufficient funds for the
payment of any such withholding tax that is legally owed by the Trust (but
such authorization shall not prevent the Owner Trustee or any Certificate
Paying Agent from contesting any such tax in appropriate proceedings, and
withholding payment of such tax, if permitted by law, pending the outcome of
such proceedings). The amount of any withholding tax imposed with respect to a
Certificateholder shall be treated as cash distributed to such
Certificateholder at the time it is withheld by the Trust and remitted to the
appropriate taxing authority. If there is a possibility that withholding tax
is payable with respect to a distribution (such as a distribution to a
non-U.S. Certificateholder), the Owner Trustee or any Certificate Paying Agent
may, in its sole discretion, withhold such amounts in accordance with this
paragraph (c). In the event that a Certificateholder wishes to apply for a
refund of any such withholding tax, the Owner Trustee shall reasonably
cooperate with such Certificateholder in making such claim so long as such
Certificateholder agrees to reimburse the Owner Trustee for any out-of-pocket
expenses incurred.

                                      14
<PAGE>

     SECTION 5.3. Method of Payment. Subject to Section 8.1(c), distributions
required to be made to Certificateholders on any Payment Date shall be made to
each Certificateholder of record on the preceding Record Date either by wire
transfer, in immediately available funds, to the account of such
Certificateholder at a bank or other entity having appropriate facilities
therefor, if (i) such Certificateholder shall have provided to the Certificate
Registrar appropriate written instructions at least five (5) Business Days
prior to such Payment Date and such Certificateholder's Certificates in the
aggregate evidence a denomination of not less than $1,000,000, or (ii) such
Certificateholder is the Depositor or, if not, by check mailed to such
Certificateholder at the address of such Certificateholder appearing in the
Certificate Register. Notwithstanding the foregoing, the final distribution in
respect of any Certificate (whether on the applicable Final Scheduled Payment
Date or otherwise) will be payable only upon presentation and surrender of
such Certificate at the office or agency maintained for that purpose by the
Owner Trustee pursuant to Section 3.8.

     SECTION 5.4. No Segregation of Monies; No Interest. Subject to Sections
5.1 and 5.2, monies received by the Owner Trustee hereunder need not be
segregated in any manner except to the extent required by law, the Indenture
or the Sale and Servicing Agreement, and may be deposited under such general
conditions as may be prescribed by law, and the Owner Trustee shall not be
liable for any interest thereon.

     SECTION 5.5. Accounting and Reports to Noteholders, Certificateholders,
Internal Revenue Service and Others. The Trust shall, based on information
provided by or on behalf of the Depositor, (a) maintain (or cause to be
maintained) the books of the Trust on a calendar year basis on the accrual
method of accounting, (b) deliver (or cause to be delivered) to each
Certificateholder, as may be required by the Code, such information as may be
required (including Schedule K-1) to enable each Certificateholder to prepare
its federal and State income tax returns, (c) file (or cause to be filed) such
tax returns relating to the Trust (including a partnership information return,
IRS Form 1065), and make such elections, as may from time to time be required
or appropriate under any applicable State or federal statute or rule or
regulation thereunder so as to maintain the Trust's characterization as a
partnership for federal income tax purposes, (d) cause such tax returns to be
signed in the manner required by law and (e) collect (or cause to be
collected) any withholding tax as described in and in accordance with Section
5.2(c) with respect to income or distributions to Certificateholders. The
Trust shall elect under Section 1278 of the Code to include in income
currently any market discount that accrues with respect to the Receivables.
The Trust shall not make the election provided under Section 754 of the Code.

     SECTION 5.6. Signature on Returns; Tax Matters Partner. (a) The Servicer
shall prepare (or cause to be prepared) and the Depositor shall sign, on
behalf of the Trust, the tax returns of the Trust, if any, unless applicable
law requires a Certificateholder to sign such documents.

     (b) The Depositor shall be designated the "tax matters partner" of the
Trust pursuant to Section 6231(a)(7)(A) of the Code.

                                      15
<PAGE>

                                  ARTICLE VI

                     AUTHORITY AND DUTIES OF OWNER TRUSTEE

     SECTION 6.1. General Authority. The Owner Trustee is authorized and
directed to execute and deliver on behalf of the Trust the Basic Documents to
which the Trust is to be a party and each certificate or other document
attached as an exhibit to or contemplated by the Basic Documents to which the
Trust is to be a party and any amendment or other agreement, in each case, in
such form as the Depositor shall approve, as evidenced conclusively by the
Owner Trustee's execution thereof and the Depositor's execution of this
Agreement, and to direct the Indenture Trustee to authenticate and deliver (i)
Class A-1 Notes in the aggregate principal amount of $505,000,000, (ii) Class
A-2 Notes in the aggregate principal amount of $461,000,000, (iii) Class A-3
Notes in the aggregate principal amount of $596,000,000 and (iv) Class A-4
Notes in the aggregate principal amount of $295,250,000. In addition to the
foregoing, the Owner Trustee is authorized to take all actions required of the
Trust pursuant to the Basic Documents. The Owner Trustee is further authorized
from time to time to take such action on behalf of the Trust as is permitted
by the Basic Documents and which the Servicer or the Administrator directs
with respect to the Basic Documents, except to the extent that this Agreement
expressly requires the consent of Certificateholders for such action.

     SECTION 6.2. General Duties. Subject to Section 4.1 hereof, it shall be
the duty of the Owner Trustee to discharge (or cause to be discharged) all of
its responsibilities pursuant to the terms of this Agreement and the other
Basic Documents to which the Trust is a party and to administer the Trust in
the interest of the Certificateholders, subject to the Lien of the Indenture
and in accordance with the provisions of this Agreement and the other Basic
Documents. Notwithstanding anything else to the contrary in this Agreement,
the Owner Trustee shall be deemed to have discharged its duties and
responsibilities hereunder and under the Basic Documents to the extent the
Administrator is required in the Administration Agreement to perform any act
or to discharge such duty of the Owner Trustee or the Trust hereunder or under
any other Basic Document, and the Owner Trustee shall not be held liable for
the default or failure of the Administrator to carry out its obligations under
the Administration Agreement. Except as expressly provided in the Basic
Documents, the Owner Trustee shall have no obligation to administer, service
or collect the Receivables or to maintain, monitor or otherwise supervise the
administration, servicing or collection of the Receivables.

     SECTION 6.3. Action upon Instruction. (a) Subject to Article IV, and in
accordance with the terms of the Basic Documents, the Certificateholders may,
by written instruction, direct the Owner Trustee in the management of the
Trust.

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

     (c) Whenever the Owner Trustee is unable to decide between alternative
courses of action permitted or required by the terms of this Agreement or any
other Basic Document, the

                                      16
<PAGE>

Owner Trustee shall promptly give notice (in such form as shall be appropriate
under the circumstances) to the Certificateholders requesting instruction as
to the course of action to be adopted, and to the extent the Owner Trustee
acts in good faith in accordance with any written instruction of the
Certificateholders received, the Owner Trustee shall not be liable on account
of such action to any Person. If the Owner Trustee shall not have received
appropriate instruction within ten (10) days of such notice (or within such
shorter period of time as reasonably may be specified in such notice or may be
necessary under the circumstances) it may, but shall be under no duty to, take
or refrain from taking such action, not inconsistent with this Agreement or
the other Basic Documents, as it shall deem to be in the best interests of the
Certificateholders, and shall have no liability to any Person for such action
or inaction.

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

     SECTION 6.4. No Duties Except as Specified in this Agreement or in
Instructions. The Owner Trustee shall not have any duty or obligation to
manage, make any payment with respect to, register, record, sell, dispose of,
or otherwise deal with the Owner Trust Estate, or to otherwise take or refrain
from taking any action under, or in connection with, any document contemplated
hereby to which the Owner Trustee or the Trust is a party, except as expressly
provided by the terms of this Agreement or in any document or written
instruction received by the Owner Trustee pursuant to Section 6.3; and no
implied duties or obligations shall be read into this Agreement or any other
Basic Document against the Owner Trustee. The Owner Trustee shall have no
responsibility for filing any financing or continuation statement in any
public office at any time or to otherwise perfect or maintain the perfection
of any security interest or Lien granted to it hereunder or to prepare or file
any Commission filing for the Trust or to record this Agreement or any other
Basic Document. Notwithstanding any Person's right to instruct the Owner
Trustee, neither the Owner Trustee nor any agent, employee, director or
officer of the Owner Trustee shall have any obligation to execute any
certificates or other documents required pursuant to the Sarbanes-Oxley Act of
2002 or the rules and regulations promulgated thereunder, and the refusal to
comply with any such instructions shall not constitute a default or breech
under any Basic Document. The Owner Trustee nevertheless agrees that it will,
at its own cost and expense, promptly take all action as may be necessary to
discharge any Lien (other than the Lien of the Indenture) on any part of the
Owner Trust Estate that results from actions by, or claims

                                      17
<PAGE>

against, the Owner Trustee that are not related to the ownership or the
administration of the Owner Trust Estate.

     SECTION 6.5. No Action Except Under Specified Documents or Instructions.
The Owner Trustee shall not manage, control, use, sell, dispose of or
otherwise deal with any part of the Owner Trust Estate except (i) in
accordance with the powers granted to and the authority conferred upon the
Owner Trustee pursuant to this Agreement, (ii) in accordance with the other
Basic Documents to which the Trust or the Owner Trust is a party and (iii) in
accordance with any document or instruction delivered to the Owner Trustee
pursuant to Section 6.3. Neither the Depositor nor the Certificateholders
shall direct the Trustee to take any action that would violate the provisions
of this Section 6.5.

     SECTION 6.6. Restrictions. The Owner Trustee shall not take any action
(a) that is inconsistent with the purposes of the Trust set forth in Section
2.3 or (b) that, to the actual knowledge of the Owner Trustee, would (i)
affect the treatment of the Notes as indebtedness for federal income or
Applicable Tax State income or franchise tax purposes, (ii) be deemed to cause
a taxable exchange of the Notes for federal income or Applicable Tax State
income or franchise tax purposes or (iii) cause the Trust or any portion
thereof to be taxable as an association (or publicly traded partnership)
taxable as a corporation for federal income or Applicable Tax State income or
franchise tax purposes. The Certificateholders shall not direct the Owner
Trustee to take action that would violate the provisions of this Section 6.6.

     SECTION 6.7. Acceptance of Trusts and Duties. The Owner Trustee accepts
the trusts hereby created and agrees to perform its duties hereunder with
respect to such trusts but only upon the terms of this Agreement. The Owner
Trustee also agrees to disburse all monies actually received by it
constituting part of the Owner Trust Estate upon the terms of this Agreement
and the other Basic Documents to which the Owner Trustee is a party. The Owner
Trustee shall not be answerable or accountable hereunder or under any other
Basic Document under any circumstances, except (i) for its own willful
misconduct, bad faith or negligence or (ii) in the case of the inaccuracy of
any representation or warranty contained in Section 6.9 expressly made by the
Owner Trustee. In particular, but not by way of limitation (and subject to the
exceptions set forth in the preceding sentence):

          (a) the Owner Trustee shall not be liable for any error of judgment
     made by a responsible officer of the Owner Trustee;

          (b) the Owner Trustee shall not be liable with respect to any action
     taken or omitted to be taken by it in good faith in accordance with the
     instructions of any Certificateholder, the Indenture Trustee, the
     Depositor, the Administrator or the Servicer;

          (c) no provision of this Agreement or any other Basic Document shall
     require the Owner Trustee to expend or risk funds or otherwise incur any
     financial liability in the performance of any of its rights or powers
     hereunder or under any other Basic Document if the Owner Trustee shall
     have reasonable grounds for believing that repayment of such funds or
     adequate indemnity against such risk or liability is not reasonably
     assured or provided to it;

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<PAGE>

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

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

          (f) the Owner Trustee shall not be liable for the default or
     misconduct of the Servicer, the Administrator, the Depositor or the
     Indenture Trustee under any of the Basic Documents or otherwise and the
     Owner Trustee shall have no obligation or liability to perform the
     obligations of the Trust under this Agreement or the other Basic
     Documents that are required to be performed by the Administrator under
     the Administration Agreement, the Indenture Trustee under the Indenture
     or the Depositor or the Servicer under the Sale and Servicing Agreement;
     and

          (g) the Owner Trustee shall be under no obligation to exercise any
     of the rights or powers vested in it by this Agreement, or to institute,
     conduct or defend any litigation under this Agreement or otherwise or in
     relation to this Agreement or any other Basic Document, at the request,
     order or direction of any of the Certificateholders, unless such
     Certificateholders have offered to the Owner Trustee reasonable security
     or indemnity against the costs, expenses and liabilities that may be
     incurred by the Owner Trustee therein or thereby.

     The right of the Owner Trustee to perform any discretionary act
enumerated in this Agreement or in any other Basic Document shall not be
construed as a duty, and the Owner Trustee shall not be answerable for other
than its willful misconduct, bad faith or negligence in the performance of any
such act.

     SECTION 6.8. Furnishing of Documents. The Owner Trustee shall furnish to
the Certificateholders, promptly upon receipt of a written request therefor,
duplicates or copies of all reports, notices, requests, demands, certificates,
financial statements and any other instruments furnished to the Owner Trustee
under the Basic Documents.

     SECTION 6.9. Representations and Warranties. (a) The Owner Trustee hereby
represents and warrants to the Depositor, for the benefit of the
Certificateholders, that:

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

                                      19
<PAGE>

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

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

     SECTION 6.10. Reliance; Advice of Counsel. (a) The Owner Trustee may rely
upon, shall be protected in relying upon, and shall incur no liability to
anyone in acting upon, any signature, instrument, notice, resolution, request,
consent, order, certificate, report, opinion, bond, or other document or paper
believed by it to be genuine and believed by it to be signed by the proper
party or parties. The Owner Trustee may accept a certified copy of a
resolution of the board of directors or other governing body of any party as
conclusive evidence that such resolution has been duly adopted by such body
and that the same is in full force and effect. As to any fact or matter the
method of determination of which is not specifically prescribed herein, the
Owner Trustee may for all purposes hereof rely on a certificate, signed by the
president or any vice president or by the treasurer or other authorized
officers of the relevant party, as to such fact or matter and such certificate
shall constitute full protection to the Owner Trustee for any action taken or
omitted to be taken by it in good faith in reliance thereon.

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

     SECTION 6.11. Not Acting in Individual Capacity. Except as provided in
this Article VI, in accepting the trusts hereby created, Wachovia Trust
Company, National Association acts solely as Owner Trustee hereunder and not
in its individual capacity, and all Persons having any claim against the Owner
Trustee by reason of the transactions contemplated by this Agreement or any
other Basic Document shall look only to the Owner Trust Estate for payment or
satisfaction thereof.

     SECTION 6.12. Owner Trustee Not Liable for Certificates or Receivables.
The recitals contained herein and in the Certificates (other than the
signature and countersignature of the Owner Trustee on the Certificates) shall
be taken as the statements of the Depositor, and the

                                      20
<PAGE>

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

     SECTION 6.13. Owner Trustee May Own Certificates and Notes. Wachovia
Trust Company, National Association, in its individual or any other capacity,
may become the owner or pledgee of Certificates or Notes and may deal with the
Depositor, the Servicer, the Administrator and the Indenture Trustee in
banking transactions with the same rights as they would have if it was not the
Owner Trustee.

                                 ARTICLE VII

                  COMPENSATION AND INDEMNITY OF OWNER TRUSTEE

     SECTION 7.1. Owner Trustee's Fees and Expenses. The Servicer, pursuant to
the Sale and Servicing Agreement, shall pay to the Owner Trustee as
compensation for its services hereunder such fees as have been separately
agreed upon prior to the date hereof between the Servicer and the Owner
Trustee, and the Servicer pursuant to the Sale and Servicing Agreement shall
reimburse the Owner Trustee for its other reasonable expenses hereunder,
including the reasonable compensation, expenses and disbursements of such
agents, representatives, experts and counsel as the Owner Trustee may employ
in connection with the exercise and performance of its rights and its duties
hereunder. The Servicer shall indemnify the Owner Trustee pursuant to the Sale
and Servicing Agreement.

     SECTION 7.2. Payments to Owner Trustee. Any amounts paid to the Owner
Trustee pursuant to this Article VII shall be deemed not to be a part of the
Owner Trust Estate immediately after such payment.

                                 ARTICLE VIII

                                  TERMINATION

                                      21
<PAGE>

     SECTION 8.1. Termination of the Trust. (a) The Trust shall dissolve and
wind up, (i) upon the maturity or other liquidation of the last remaining
Receivable and the disposition of any amounts received upon such maturity or
liquidation, (ii) upon the payment to the Noteholders and the
Certificateholders of all amounts required to be paid to them pursuant to the
terms of the Indenture, the Sale and Servicing Agreement, Article V and
Section 8.2, or (iii) upon the entry of an order for the dissolution of the
Trust from a court of competent jurisdiction. Any Insolvency Event,
liquidation, dissolution, death or incapacity with respect to any
Certificateholder or Certificate Owner shall not (x) operate to terminate this
Agreement or dissolve and/or terminate the Trust, nor (y) entitle such
Certificateholder's legal representatives or heirs to claim an accounting or
to take any action or proceeding in any court for a partition or winding up of
all or any part of the Trust or Owner Trust Estate nor (z) otherwise affect
the rights, obligations and liabilities of the parties hereto. Upon
dissolution of the Trust, the Owner Trustee shall wind up the business and
affairs of the Trust as required by Section 3808 of the Statutory Trust
Statute.

     (b) Except as provided in Section 8.1(a), neither the Depositor nor any
Certificateholder shall be entitled to revoke or terminate the Trust.

     (c) Notice of any dissolution of the Trust, specifying the Payment Date
upon which the Certificateholders shall surrender their Certificates to the
Certificate Paying Agent for payment of the final distribution and
cancellation, shall be given by the Owner Trustee by letter to
Certificateholders mailed within five (5) Business Days of receipt of notice
of such dissolution from the Servicer, stating (i) the Payment Date upon or
with respect to which final payment of the Certificates shall be made upon
presentation and surrender of the Certificates at the office of the
Certificate Paying Agent therein designated, (ii) the amount of any such final
payment (after reservation of sums sufficient to pay all claims and
obligations, if any, known to the Owner Trustee and payable by the Trust) and
(iii) that the Record Date otherwise applicable to such Payment Date is not
applicable, payments being made only upon presentation and surrender of the
Certificates at the office of the Certificate Paying Agent therein specified.
The Owner Trustee shall give such notice to the Certificate Registrar (if
other than the Owner Trustee) and the Certificate Paying Agent at the time
such notice is given to Certificateholders. Upon presentation and surrender of
the Certificates, the Certificate Paying Agent shall cause to be distributed
to Certificateholders amounts distributable on such Payment Date pursuant to
Section 5.2. Upon the satisfaction and discharge of the Indenture, and receipt
of a certificate from the Indenture Trustee stating that all Noteholders have
been paid in full and that the Indenture Trustee is aware of no claims
remaining against the Trust in respect of the Indenture and the Notes, the
Owner Trustee, in the absence of actual knowledge of any other claim against
the Trust, shall be deemed to have made reasonable provision to pay all claims
and obligations (including conditional, contingent or unmatured obligations)
for purposes of Section 3808(e) of the Statutory Trust Statute.

     In the event that all of the Certificateholders shall not surrender their
Certificates for cancellation within six (6) months after the date specified
in the above mentioned written notice, the Owner Trustee shall give a second
written notice to the remaining Certificateholders to surrender their
Certificates for cancellation and receive the final distribution with respect
thereto. If within one year after the second notice all the Certificates shall
not have been surrendered for cancellation, the Owner Trustee may take
appropriate steps, or may appoint an agent to take appropriate steps, to
contact the remaining Certificateholders concerning surrender of their

                                      22
<PAGE>

Certificates and the cost thereof shall be paid out of the funds and other
assets that shall remain subject to this Agreement. Subject to applicable
escheat laws, any funds remaining in the Trust after exhaustion of such
remedies shall be distributed by the Owner Trustee to the Depositor.

     (d) Upon final distribution of any funds remaining in the Trust, the
Owner Trustee shall cause the Certificate of Trust to be cancelled by filing a
certificate of cancellation with the Secretary of State in accordance with the
provisions of Section 3810(d) of the Statutory Trust Statute whereupon the
Trust and this Agreement shall terminate.

     SECTION 8.2. Prepayment of Certificates. (a) The Certificates shall be
prepaid in whole, but not in part, at the direction of the Servicer pursuant
to Section 8.1 of the Sale and Servicing Agreement, on any Payment Date on
which the Servicer exercises its option to purchase the assets of the Trust
pursuant to said Section 8.1, and the amount paid by the Servicer shall be
treated as collections of Receivables and applied to pay the unpaid principal
amount of the Notes and the Certificate Balance plus accrued and unpaid
interest (including any overdue interest, to the extent lawful) thereon. The
Servicer shall furnish the Rating Agencies and the Owner Trustee notice of
such prepayment. If the Certificates are to be prepaid pursuant to this
Section 8.2(a), the Servicer shall furnish notice of such election to the
Owner Trustee not later than forty (40) days prior to the Prepayment Date and
the Trust shall deposit by 10:00 A.M. (New York City time) on the Prepayment
Date in the Certificate Distribution Account the Prepayment Price of the
Certificates to be redeemed, whereupon all such Certificates shall be due and
payable on the Prepayment Date.

     (b) Notice of prepayment under Section 8.2(a) shall be given by the Owner
Trustee by first-class mail, postage prepaid, or by facsimile mailed or
transmitted immediately following receipt of notice from the Trust or Servicer
pursuant to Section 8.2(a), but not later than thirty (30) days prior to the
applicable Prepayment Date, to each Certificateholder as of the close of
business on the Record Date preceding the applicable Prepayment Date, at such
Certificateholder's address or facsimile number appearing in the Certificate
Register.

     All notices of prepayment shall state:

     (i) the Prepayment Date;

     (ii) the Prepayment Price; and

     (iii) the place where such Certificates are to be surrendered for payment
of the Prepayment Price (which shall be the office or agency of the Owner
Trustee to be maintained as provided in Section 3.8).

     Notice of prepayment of the Certificates shall be given by the Owner
Trustee in the name and at the expense of the Trust. Failure to give notice of
prepayment, or any defect therein, to any Certificateholder shall not impair
or affect the validity of the prepayment of any other Certificate.

     (c) Following notice of prepayment as required by Section 8.2(b), the
Certificates shall on the Prepayment Date be paid by the Trust at the
Prepayment Price and (unless the Trust shall default in the payment of the
Prepayment Price) no interest shall accrue on the Prepayment

                                      23
<PAGE>

Price for any period after the date to which accrued interest is calculated
for purposes of calculating the Prepayment Price.

                                  ARTICLE IX

            SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

     SECTION 9.1. Eligibility Requirements for Owner Trustee. (a) The Owner
Trustee shall at all times (i) be authorized to exercise corporate trust
powers; (ii) have a combined capital and surplus of at least $50,000,000 and
shall be subject to supervision or examination by federal or state
authorities; and (iii) shall have (or shall have a parent that has) a
long-term debt rating of investment grade by each of the Rating Agencies or be
otherwise acceptable to the Rating Agencies. If such corporation shall publish
reports of condition at least annually, pursuant to law or to the requirements
of the aforesaid supervising or examining authority, then for the purpose of
this Section 9.1, the combined capital and surplus of such corporation shall
be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. In case at any time the Owner Trustee
shall cease to be eligible in accordance with the provisions of this Section
9.1, the Owner Trustee shall resign immediately in the manner and with the
effect specified in Section 9.2.

     (b) The Owner Trustee shall at all times be a corporation satisfying the
provisions of Section 3807(a) of the Statutory Trust Statute.

     SECTION 9.2. Resignation or Removal of Owner Trustee. (a) The Owner
Trustee may at any time resign and be discharged from the trusts hereby
created by giving written notice thereof to the Administrator. Upon receiving
such notice of resignation, the Administrator shall promptly appoint a
successor Owner Trustee by written instrument, in duplicate, one copy of which
instrument shall be delivered to the resigning Owner Trustee and one copy to
the applicable successor Owner Trustee. If no successor Owner Trustee shall
have been so appointed and have accepted appointment within thirty (30) days
after the giving of such notice of resignation, the resigning Owner Trustee
may petition any court of competent jurisdiction for the appointment of a
successor Owner Trustee; provided, however, that such right to appoint or to
petition for the appointment of any such successor shall in no event relieve
the resigning Owner Trustee from any obligations otherwise imposed on it under
the Basic Documents until such successor has in fact assumed such appointment.

     (b) If at any time the Owner Trustee shall cease to be eligible in
accordance with the provisions of Section 9.1 or resigns pursuant to Section
9.2 of this Agreement and the ineligible or non-resigning Owner Trustee shall
fail to resign after written request therefor by the Administrator, or if at
any time the Owner Trustee shall be legally unable to act, or if at any time
an Insolvency Event with respect to the Owner Trustee shall have occurred and
be continuing, then the Administrator may remove the Owner Trustee. If the
Administrator shall remove the Owner Trustee under the authority of the
immediately preceding sentence, the Administrator shall promptly appoint a
successor Owner Trustee, by written instrument, in duplicate, one copy of
which instrument shall be delivered to the outgoing Owner Trustee so removed
and one copy to the successor Owner Trustee, and shall pay all fees owed to
the outgoing Owner Trustee.

                                      24
<PAGE>

     (c) Any resignation or removal of an Owner Trustee and appointment of a
successor Owner Trustee pursuant to any of the provisions of this Section 9.2
shall not become effective until acceptance of appointment by the successor
Owner Trustee pursuant to Section 9.3, payment of all fees and expenses owed
to the outgoing Owner Trustee and the filing of a certificate of amendment to
the Certificate of Trust if required by the Statutory Trust Statute. The
Administrator shall provide notice of such resignation or removal of the Owner
Trustee to the Certificateholders, the Indenture Trustee, the Noteholders and
each of the Rating Agencies.

     SECTION 9.3. Successor Owner Trustee. (a) Any successor Owner Trustee
appointed pursuant to Section 9.2 shall execute, acknowledge and deliver to
the Administrator and to its predecessor Owner Trustee an instrument accepting
such appointment under this Agreement. Upon the resignation or removal of the
predecessor Owner Trustee becoming effective pursuant to Section 9.2, such
successor Owner Trustee, without any further act, deed or conveyance, shall
become fully vested with all the rights, powers, duties, and obligations of
its predecessor under this Agreement, with like effect as if originally named
as Owner Trustee. The predecessor Owner Trustee shall, upon payment of its
fees and expenses, deliver to the successor Owner Trustee all documents and
statements and monies held by it under this Agreement, and the Administrator
and the predecessor Owner Trustee shall execute and deliver such instruments
and do such other things as may reasonably be required for fully and certainly
vesting and confirming in the successor Owner Trustee all such rights, powers,
duties, and obligations.

     (b) No successor Owner Trustee shall accept appointment as provided in
this Section 9.3 unless, at the time of such acceptance, such successor Owner
Trustee shall be eligible pursuant to Section 9.1.

     (c) Upon acceptance of appointment by a successor Owner Trustee pursuant
to this Section 9.3, the Administrator shall mail notice of the successor of
such Owner Trustee to all Certificateholders, the Servicer, the Indenture
Trustee, the Noteholders and the Rating Agencies. If the Administrator shall
fail to mail such notice within ten (10) days after acceptance of such
appointment by the successor Owner Trustee, the successor Owner Trustee shall
cause such notice to be mailed at the expense of the Administrator.

     (d) Any successor Owner Trustee appointed hereunder shall file the
amendments to the Certificate of Trust with the Secretary of State identifying
the name and principal place of business of such successor Owner Trustee in
the State of Delaware.

     SECTION 9.4. Merger or Consolidation of Owner Trustee. Any corporation
into which the Owner Trustee may be merged or converted or with which it may
be consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Owner Trustee shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Owner Trustee, shall, without the execution or filing of any instrument or any
further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding, be the successor of the Owner Trustee hereunder;
provided that such corporation shall be eligible pursuant to Section 9.1; and
provided further, that (i) the Owner Trustee shall mail notice of such merger
or consolidation to the Rating Agencies not less than fifteen (15) days prior
to the effective date thereof and (ii) the Owner Trustee shall file an
amendment to the Certificate of Trust as required by Section 9.3.

                                      25
<PAGE>

     SECTION 9.5. Appointment of Co-Trustee or Separate Trustee. (a)
Notwithstanding any other provisions of this Agreement, at any time, for the
purpose of meeting any legal requirements of any jurisdiction in which any
part of the Owner Trust Estate or any Financed Vehicle may at the time be
located, the Administrator and the Owner Trustee acting jointly shall have the
power and shall execute and deliver all instruments to appoint one or more
Persons approved by the Owner Trustee to act as co-trustee, jointly with the
Owner Trustee, or as separate trustee or separate trustees, of all or any part
of the Trust, and to vest in such Person, in such capacity, such title to the
Owner Trust Estate, or any part thereof, and, subject to the other provisions
of this Section 9.5, such powers, duties, obligations, rights and trusts as
the Administrator and the Owner Trustee may consider necessary or desirable.
If the Administrator shall not have joined in such appointment within fifteen
(15) days after the receipt by it of a request so to do, the Owner Trustee
alone shall have the power to make such appointment. No co-trustee or separate
trustee under this Agreement shall be required to meet the terms of
eligibility as a successor trustee pursuant to Section 9.1 and no notice of
the appointment of any co-trustee or separate trustee shall be required
pursuant to Section 9.3.

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

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

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

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

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

                                      26
<PAGE>

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

     SECTION 9.6. Compliance with Statutory Trust Statute. Notwithstanding
anything herein to the contrary, the Trust shall at all times have at least
one trustee which meets the requirements of Section 3807(a) of the Statutory
Trust Statute.

                                  ARTICLE X

                                 MISCELLANEOUS

     SECTION 10.1. Supplements and Amendments. (a) This Agreement may be
amended by the Depositor and the Owner Trustee, with prior written notice to
the Rating Agencies and the Indenture Trustee, without the consent of any of
the Noteholders or the Certificateholders, to cure any ambiguity, to correct
or supplement any provisions in this Agreement inconsistent with any other
provision of this Agreement or for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions in this Agreement;
provided, however, that such action shall not, as evidenced by an Opinion of
Counsel satisfactory to the Owner Trustee and the Indenture Trustee, adversely
affect in any material respect the interests of any Noteholder or
Certificateholder; and provided further that an Opinion of Counsel shall be
furnished to the Indenture Trustee and the Owner Trustee to the effect that
such amendment (A) will not materially adversely affect the federal or any
Applicable Tax State income or franchise taxation of any outstanding Note or
Certificate, or any Noteholder or Certificateholder and (B) will not cause the
Trust to be taxable as a corporation for federal or any Applicable Tax State
income or franchise tax purposes.

     (b) This Agreement may also be amended from time to time by the Depositor
and the Owner Trustee, with prior written notice to the Rating Agencies and
the Indenture Trustee, with the consent of (i) the holders of Notes evidencing
not less than a majority of the principal amount of the Notes Outstanding and
(ii) the holders of Certificates evidencing not less than a majority of the
Certificate Balance, for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of this Agreement or of
modifying in any manner the rights of the Noteholders or the
Certificateholders; provided, however, that no such amendment shall (i)
increase or reduce in any manner the amount of, or accelerate or delay the
timing of, or change the allocation or priority of, collections of payments on
Receivables or distributions that are required to be made for the benefit of
the Noteholders or the Certificateholders, or (ii) reduce the aforesaid
percentage of the principal amount of the Notes Outstanding and the
Certificate Balance required to consent to any such amendment, without the
consent of all the Noteholders and Certificateholders affected thereby; and
provided further, that an Opinion of Counsel shall be furnished to the
Indenture Trustee and the Owner Trustee to the effect that such amendment (A)
will not materially adversely affect the federal or any Applicable Tax State
income or franchise taxation of any outstanding Note or Certificate, or any
Noteholder or Certificateholder and (B)

                                      27
<PAGE>

will not cause the Trust to be taxable as a corporation for federal or any
Applicable Tax State income or franchise tax purposes.

     (c) Promptly after the execution of any such amendment, the Owner Trustee
shall furnish written notification of the substance of such amendment or
consent to each Certificateholder, the Indenture Trustee and each of the
Rating Agencies.

     (d) It shall not be necessary for the consent of Certificateholders, the
Noteholders or the Indenture Trustee pursuant to this Section 10.1 to approve
the particular form of any proposed amendment or consent, but it shall be
sufficient if such consent shall approve the substance thereof. The manner of
obtaining such consents (and any other consents of Certificateholders provided
for in this Agreement or in any other Basic Document) and of evidencing the
authorization of the execution thereof by Certificateholders shall be subject
to such reasonable requirements as the Owner Trustee may prescribe.

     (e) Promptly after the execution of any amendment to the Certificate of
Trust, the Owner Trustee shall cause the filing of such amendment with the
Secretary of State.

     (f) Prior to the execution of any amendment to this Agreement or the
Certificate of Trust, the Owner Trustee shall be entitled to receive and rely
upon an Opinion of Counsel stating that the execution of such amendment is
authorized or permitted by this Agreement. The Owner Trustee may, but shall
not be obligated to, enter into any such amendment which affects the Owner
Trustee's own rights, duties or immunities under this Agreement or otherwise.

     (g) In connection with the execution of any amendment to this Agreement
or any amendment to any other agreement to which the Trust is a party, the
Owner Trustee shall be entitled to receive and conclusively rely upon an
Opinion of Counsel to the effect that such amendment is authorized or
permitted by the Basic Documents and that all conditions precedent in the
Basic Documents for the execution and delivery thereof by the Trust or the
Owner Trustee, as the case may be, have been satisfied.

     SECTION 10.2. No Legal Title to Owner Trust Estate in Certificateholders.
Neither the Depositor nor the Certificateholders shall have legal title to any
part of the Owner Trust Estate. The Certificateholders shall be entitled to
receive distributions with respect to their beneficial interests therein only
in accordance with Articles V and VIII. No transfer, by operation of law or
otherwise, of any right, title, or interest of the Certificateholders to and
in their beneficial interest in the Owner Trust Estate shall operate to
terminate this Agreement or the trusts hereunder or entitle any transferee to
an accounting or to the transfer to it of legal title to any part of the Owner
Trust Estate.

     SECTION 10.3. Limitation on Rights of Others. The provisions of this
Agreement are solely for the benefit of the Owner Trustee, the Depositor, the
Administrator, the Certificateholders, the Servicer and, to the extent
expressly provided herein, the Indenture Trustee and the Noteholders, and
nothing in this Agreement, whether express or implied, shall be construed to
give to any other Person any legal or equitable right, remedy or claim in the
Owner Trust Estate or under or in respect of this Agreement or any covenants,
conditions or provisions contained herein.

                                      28
<PAGE>

     SECTION 10.4. Notices. (a) Unless otherwise expressly specified or
permitted by the terms hereof, all notices shall be in writing and shall be
deemed given upon receipt by the intended recipient or three (3) Business Days
after mailing if mailed by certified mail, postage prepaid (except that notice
to the Owner Trustee shall be deemed given only upon actual receipt by the
Owner Trustee), if to the Owner Trustee, addressed to the respective Corporate
Trust Office; if to the Depositor, addressed to USAA Acceptance, LLC at the
address of its principal executive office first above written; or, as to each
party, at such other address as shall be designated by such party in a written
notice to each other party.

     (b) Any notice required or permitted to be given to a Certificateholder
shall be given by first-class mail, postage prepaid, at the address of such
Certificateholder as shown in the Certificate Register. Any notice so mailed
within the time prescribed in this Agreement shall be conclusively presumed to
have been duly given, whether or not such Certificateholder receives such
notice.

     SECTION 10.5. Severability. Any provision of this Agreement or the
Certificates that is prohibited or unenforceable in any jurisdiction shall, as
to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof or
thereof, and any such prohibition or unenforceability in any jurisdiction
shall not invalidate or render unenforceable such provision in any other
jurisdiction.

     SECTION 10.6. Separate Counterparts. This Agreement may be executed by
the parties hereto in separate counterparts, each of which when so executed
and delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument.

     SECTION 10.7. Successors and Assigns. All covenants and agreements
contained herein shall be binding upon, and inure to the benefit of, the
Depositor, the Owner Trustee and its successors and each Certificateholder and
its successors and permitted assigns, all as herein provided. Any request,
notice, direction, consent, waiver or other instrument or action by a
Certificateholder shall bind the successors and assigns of such
Certificateholder.

     SECTION 10.8. No Petition. The Owner Trustee (not in its individual
capacity but solely as Owner Trustee), and the Depositor solely in relation to
the Trust, by entering into this Agreement, and each Certificateholder, by
accepting a Certificate, hereby covenants and agrees that it will not, until
after the Notes have been paid in full, institute against the Depositor or the
Trust, or join in any institution against the Depositor or the Trust of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings, or other proceedings under any United States federal or State
bankruptcy or similar law in connection with any obligations relating to the
Certificates, the Notes, this Agreement or any of the other Basic Documents.

     SECTION 10.9. No Recourse. Each Certificateholder, by accepting a
Certificate, acknowledges that such Certificateholder's Certificates represent
beneficial interests in the Trust only and do not represent interests in or
obligations of the Depositor, the Servicer, the Administrator, the Owner
Trustee, the Indenture Trustee or any Affiliate thereof, and no recourse may
be had against such parties or their assets, except as may be expressly set
forth or contemplated in this Agreement, the Certificates or the other Basic
Documents.

                                      29
<PAGE>

     SECTION 10.10. Headings. The headings of the various Articles and
Sections herein are for convenience of reference only and shall not define or
limit any of the terms or provisions hereof.

     SECTION 10.11. GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE AND THE OBLIGATIONS, RIGHTS
AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
SUCH LAWS.

                                      30
<PAGE>

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

                                    USAA ACCEPTANCE, LLC,
                                    as Depositor

                                    By:  /s/ Edwin T. McQuiston
                                        -------------------------------------
                                        Name:  Edwin T. McQuiston
                                        Title: Vice President

                                     WACHOVIA TRUST COMPANY, NATIONAL
                                     ASSOCIATION,
                                     as Owner Trustee

                                   By:  /s/ Rita M. Ritrovato
                                        -------------------------------------
                                        Name:  Rita M. Ritrovato
                                        Title: Trust Officer

                                      31
<PAGE>

                                   EXHIBIT A

                          FORM OF CLASS B CERTIFICATE

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

         THE PRINCIPAL OF THIS CERTIFICATE IS PAYABLE IN INSTALLMENTS AS SET
FORTH IN THE TRUST AGREEMENT REFERRED TO BELOW. ACCORDINGLY, THE OUTSTANDING
PRINCIPAL BALANCE OF THIS CERTIFICATE AT ANY TIME MAY BE LESS THAN THE AMOUNT
SHOWN ON THE FACE HEREOF.

NUMBER   $
B-__                                                    CUSIP NO. 903278 BF 5

                         USAA AUTO OWNER TRUST 2004-1

                    CLASS B 3.21% ASSET BACKED CERTIFICATE

evidencing a beneficial interest in the Trust, as defined below. The property
of the Trust includes a pool of motor vehicle retail installment loans,
secured by security interests in the motor vehicles financed thereby, conveyed
by USAA Acceptance, LLC to the Trust. The property of the Trust has been
pledged to the Indenture Trustee pursuant to the Indenture to secure the
payment of the Notes issued thereunder.

(This Certificate is not a deposit, does not represent an interest in or
obligation of USAA Federal Savings Bank or any of its Affiliates and is not
insured by the Federal Deposit Insurance Corporation or any other entity.)

         THIS CERTIFIES THAT ___________ is the registered owner of
____________ ______________ dollars certificate principal balance of Class B
3.21% Asset Backed Certificates of USAA Auto Owner Trust 2004-1 (the "Trust")
formed by USAA Acceptance, LLC, a Delaware limited liability company (the
"Depositor").

         The Trust is governed pursuant to an Amended and Restated Trust
Agreement, dated as of March 2, 2004 (as from time to time amended,
supplemented or otherwise modified and in

                                     A-1

<PAGE>

effect, the "Trust Agreement"), between the Depositor and Wachovia Trust
Company, National Association, a national banking association, not in its
individual capacity but solely as owner trustee (the "Owner Trustee"), a
summary of certain of the pertinent provisions of which is set forth below. To
the extent not otherwise defined herein, the capitalized terms used herein
have the meanings assigned to them in the Trust Agreement.

         This Certificate is one of the duly authorized Certificates
designated as "Class B 3.21% Asset Backed Certificates" (herein called the
"Class B Certificates" or "Certificates") which are issued under and are
subject to the terms, provisions and conditions of the Trust Agreement, to
which Trust Agreement the holder of this Certificate by virtue of the
acceptance hereof assents and by which such Certificateholder is bound. Also
issued under the Indenture, dated as of March 2, 2004 (as from time to time
amended, supplemented or otherwise modified and in effect, the "Indenture"),
between the Trust and JPMorgan Chase Bank, as indenture trustee (in such
capacity, the "Indenture Trustee"), are the Notes designated as "Class A-1
1.08% Asset Backed Notes", "Class A-2 1.43% Asset Backed Notes", "Class A-3
2.06% Asset Backed Notes" and "Class A-4 2.67% Asset Backed Notes"
(collectively, the "Notes"). The property of the Trust includes (i) a pool of
motor vehicle retail installment loans for new and used automobiles and light
trucks and certain rights and obligations thereunder (the "Receivables"); (ii)
monies received thereunder on or after the Cut-off Date; (iii) security
interests in the Financed Vehicles granted by Obligors pursuant to the
Receivables and any other interest of the Trust in the Financed Vehicles; (iv)
rights to proceeds with respect to the Receivables from claims on theft,
physical damage, credit life, credit disability or other insurance policies
covering Financed Vehicles or Obligors; (v) all of the Seller's rights to the
Receivable Files; (vi) such amounts as from time to time may be held in one or
more accounts maintained pursuant to the Sale and Servicing Agreement, dated
as of February 1, 2004 (as from time to time amended, supplemented or
otherwise modified and in effect, the "Sale and Servicing Agreement"), by and
among the Trust, the Depositor, and USAA Federal Savings Bank, as seller (in
such capacity, the "Seller") and as servicer (in such capacity, the
"Servicer"); (vii) payments and proceeds with respect to the Receivables held
by the Servicer; (viii) all property (including the right to receive
Liquidation Proceeds) securing a Receivable (other than a Receivable
repurchased by the Servicer or purchased by the Seller); (ix) rebates of
premiums and other amounts relating to insurance policies and other items
financed under the Receivables in effect as of the Cut-off Date; and (x) all
present and future claims, demands, causes of action 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 or all of the
foregoing, including all proceeds of the conversion thereof, voluntary or
involuntary, into cash or other liquid property, all cash proceeds, accounts,
accounts receivable, 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,
instruments and other property which at any time constitute all or part of or
are included in the proceeds of any of the foregoing. THE RIGHTS OF THE TRUST
IN THE FOREGOING PROPERTY OF THE TRUST HAVE BEEN PLEDGED TO THE INDENTURE
TRUSTEE TO SECURE THE PAYMENT OF THE NOTES.

         Under the Trust Agreement, there will be distributed on the 15th day
of each month, or if such 15th day is not a Business Day, the next Business
Day (each, a "Payment Date"), commencing April 15, 2004, to the Person in
whose name this Certificate is registered at the

                                     A-2
<PAGE>

close of business on the last day of the preceding month (the "Record Date")
such Certificateholder's percentage interest in the amount to be distributed
to Class B Certificateholders on such Payment Date pursuant to the Trust
Agreement. Following the occurrence and during the continuation of certain
events of default under the Indenture which result in an acceleration of the
Notes, no distributions or interest will be made on the Certificates until all
principal and interest on the Notes has been paid in full.

         THE HOLDER OF THIS CERTIFICATE ACKNOWLEDGES AND AGREES THAT ITS
RIGHTS TO RECEIVE DISTRIBUTIONS AND INTEREST IN RESPECT OF THIS CERTIFICATE
ARE SUBORDINATED TO THE RIGHTS OF THE NOTEHOLDERS AS DESCRIBED IN THE SALE AND
SERVICING AGREEMENT, THE INDENTURE AND THE TRUST AGREEMENT.

         It is the intent of the Depositor, the Servicer and the
Certificateholders that, for purposes of federal income, state and local
franchise and income tax and any other income taxes, the Trust will be treated
as a partnership and the Certificateholders (including the Depositor) will be
treated as partners in that partnership. The Depositor and the other
Certificateholders by acceptance of a Certificate agree to treat, and to take
no action inconsistent with the treatment of, the Certificates for such tax
purposes as partnership interests in the Trust.

         Each Certificateholder, by its acceptance of a Certificate, covenants
and agrees that such Certificateholder will not, until after the Notes have
been paid in full, institute against the Trust, or join in any institution
against the Trust of, any bankruptcy, reorganization, arrangement, insolvency
or liquidation proceedings, or other proceedings under any United States
federal or state bankruptcy or similar law in connection with any obligations
relating to the Notes, the Certificates, the Trust Agreement or any of the
other Basic Documents.

         Distributions on this Certificate will be made as provided in the
Trust Agreement by the Owner Trustee or the Certificate Paying Agent by wire
transfer or check mailed to the Certificateholder of record in the Certificate
Register without the presentation or surrender of this Certificate or the
making of any notation hereon. Except as otherwise provided in the Trust
Agreement and notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Owner Trustee of the pendency
of such distribution and only upon presentation and surrender of this
Certificate at the office or agency maintained for the purpose by the Owner
Trustee in New York, New York.

         Reference is hereby made to the further provisions of this
Certificate set forth on the reverse hereof, which further provisions shall
for all purposes have the same effect as if set forth at this place.

         Unless the certificate of authentication hereon shall have been
executed by the Owner Trustee by an authorized officer of the Owner Trustee,
by manual signature, this Certificate shall not entitle the Certificateholder
hereof to any benefit under the Trust Agreement or be valid for any purpose.

                                     A-3
<PAGE>

         This Certificate shall be construed in accordance with the laws of
the State of Delaware and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws.

                                     A-4

<PAGE>

         IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Trust and not
in its individual capacity, has caused this Certificate to be duly executed.

                                  USAA AUTO OWNER TRUST 2004-1

Dated:  March 2, 2004             By:   Wachovia Trust Company, National
                                        Association
                                        not in its individual capacity
                                        but solely as Owner Trustee

                                   By:
                                       -------------------------------------
                                                 Authorized Officer

                 OWNER TRUSTEE'S CERTIFICATE OF AUTHENTICATION

         This is one of the Certificates referred to in the within-mentioned
Trust Agreement.

Dated:  March 2, 2004

                                  Wachovia Trust Company, National Association

                                  not in its individual capacity
                                  but solely as Owner Trustee

                                  By:
                                     ----------------------------------------
                                                Authorized Officer

                                     A-5

<PAGE>

                           [REVERSE OF CERTIFICATE]

         The Certificates do not represent an obligation of, or an interest
in, the Depositor, the Seller, the Servicer, the Administrator, the Owner
Trustee or any Affiliates of any of them other than the Trust and no recourse
may be had against such parties or their assets, except as may be expressly
set forth or contemplated herein, in the Trust Agreement or in the other Basic
Documents. In addition, this Certificate is not guaranteed by any governmental
agency or instrumentality or by any other entity and is limited in right of
payment to certain collections with respect to the Receivables (and certain
other amounts), all as more specifically set forth herein and in the Sale and
Servicing Agreement.

         The Trust Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor and the rights of the Certificateholders under
the Trust Agreement at any time by the Depositor and the Owner Trustee with
the consent of the Noteholders and the Certificateholders evidencing not less
than a majority of the principal amount of the Notes Outstanding and the
Certificate Balance, respectively. Any such consent by the holder of this
Certificate shall be conclusive and binding on such Certificateholder and on
all future holders of this Certificate and of any Certificate issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof
whether or not notation of such consent is made upon this Certificate. The
Trust Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of any of the Certificateholders.

         As provided in the Trust Agreement and subject to certain limitations
therein set forth, the Transfer of the Certificates are registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies maintained by the Owner Trustee in its
capacity as Certificate Registrar, or by any successor Certificate Registrar,
in Wilmington, Delaware, accompanied by a written instrument of transfer in
form satisfactory to the Owner Trustee and the Certificate Registrar duly
executed by the holder hereof or such holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of authorized
denominations evidencing the same aggregate interest in the Trust will be
issued to the designated transferee.

         The Certificates are issuable as registered Certificates without
coupons in denominations of at least $1,000 and in integral multiples of
$1,000 in excess thereof. Certificates are exchangeable for new Certificates
and authorized denominations evidencing the same aggregate denomination, as
requested by the Certificateholder surrendering the same. No service charge
will be made for any such registration of transfer or exchange, but the Owner
Trustee or the Certificate Registrar may require payment of a sum sufficient
to cover any tax or governmental charge payable in connection therewith.

         The Owner Trustee, the Certificate Registrar and any agent of the
Owner Trustee or the Certificate Registrar may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none
of the Owner Trustee, the Certificate Registrar or any such agent shall be
affected by any notice to the contrary.

                                     A-6
<PAGE>

         The Certificates may be acquired only by an entity that is either:
(a) not, and each account (if any) for which it is purchasing the Certificates
is not (i) an employee benefit plan (as defined in Section 3(3) of the
Employee Retirement Income Security Act of 1974, as amended ("ERISA")) that is
subject to Title I of ERISA, (ii) a plan described in Section 4975(e)(1) of
the Internal Revenue Code of 1986, as amended (the "Code"), that is subject to
Section 4975 of the Code, (iii) a governmental plan, as defined in Section
3(32) of ERISA, subject to any federal, State or local law which is, to a
material extent, similar to the provisions of Section 406 of ERISA or Section
4975 of the Code, (iv) an entity whose underlying assets include plan assets
by reason of a plan's investment in the entity (within the meaning of
Department of Labor Regulation 29 C.F.R. ss. 2510.3-101 or otherwise under
ERISA) or (v) a person investing "plan assets" of any such plan (including
without limitation, for purposes of this clause (v), an insurance company
general account, but excluding any entity registered under the Investment
Company Act of 1940, as amended); or (b) an insurance company acting on behalf
of a general account and (i) on the date of purchase less than 25% of the
assets of such general account (as reasonably determined by it) constitute
"plan assets" for purposes of Title I of ERISA and Section 4975 of the Code,
(ii) the purchase and holding of such Certificates are eligible for exemptive
relief under Sections (I) and (III) of Prohibited Transaction Class Exemption
95-60, and (iii) the purchaser agrees that if, after the purchaser's initial
acquisition of the Certificates, at any time during any calendar quarter 25%
or more of the assets of such general account (as reasonably determined by it
no less frequently than each calendar quarter) constitute "plan assets" for
purposes of Title I of ERISA or Section 4975 of the Code and no exemption or
exception from the prohibited transaction rules applies to the continued
holding of the Certificates under Section 401(c) of ERISA and the final
regulations thereunder or under an exemption or regulation issued by the
United States Department of Labor under ERISA, it will dispose of all
Certificates then held in its general account by the end of the next following
calendar quarter.

         In addition, the Certificates may not be acquired by or on behalf of
a Person other than (A) a citizen or resident of the United States, (B) a
corporation or partnership organized in or under the laws of the United
States, any state thereof or the District of Columbia, (C) an estate the
income of which is includible in gross income for United States tax purposes,
regardless of its source, (D) a trust with respect to which a U.S. court is
able to exercise primary supervision over the administration of such trust and
one or more Persons meeting the conditions of this paragraph has the authority
to control all substantial decisions of the trust or (E) a Person not
described in clauses (A) through (D) above whose ownership of the Certificates
is effectively connected with such Person's conduct of a trade or business
within the United States (within the meaning of the Code) and who provides the
Owner Trustee and the Depositor with an IRS Form W-8 ECI (and such other
certifications, representations, or opinions of counsel as may be requested by
the Owner Trustee or the Depositor).

         The Trust shall dissolve (i) upon the maturity or other liquidation
of the last remaining Receivable and the disposition of any amounts received
upon such maturity or liquidation, (ii) upon the payment to the Noteholders
and the Certificateholders of all amounts required to be paid to them pursuant
to the Indenture, the Trust Agreement and the Sale and Servicing Agreement, or
(iii) the entry of an order for the dissolution of the Trust by a court of
competent jurisdiction, and upon such dissolution any remaining assets of the
Trust shall be distributed to the Depositor. The Servicer of the Receivables
may at its option purchase the assets of the Trust

                                     A-7
<PAGE>

at a price specified in the Sale and Servicing Agreement, and such purchase of
the Receivables and other property of the Trust will effect an early
retirement of the Notes and the Certificates; however, such right of purchase
is exercisable only as of the last day of any Collection Period as of which
the Pool Balance is less than or equal to 10% of the Initial Pool Balance.

                                     A-8

<PAGE>

                                  ASSIGNMENT

     FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers
unto
     -------------------------------------
PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE

-------------------------------------------------------------------------------
(Please print or type name and address, including postal zip code, of assignee)

-------------------------------------------------------------------------------
the within Certificate, and all rights thereunder, hereby irrevocably
constituting and appointing Attorney to transfer said Certificate on the
______________ books of the Certificate Registrar, with full power of
substitution in the premises.

Dated:___________

                                                             */
                                       -----------------------
                                       Signature Guaranteed:

                                                             */
                                       -----------------------

*/NOTICE: The signature to this assignment must correspond with the name as it
appears upon the face of the within Certificate in every particular, without
alteration, enlargement or any change whatever. Such signature must be
guaranteed by a member firm of the New York Stock Exchange or a commercial
bank or trust company.

                                     A-9

<PAGE>

                                   EXHIBIT B

                         FORM OF CERTIFICATE OF TRUST

                            CERTIFICATE OF TRUST OF
                         USAA AUTO OWNER TRUST 2004-1

         This Certificate of Trust of USAA Auto Owner Trust 2004-1 (the
"Trust"), is being duly executed and filed by Wachovia Trust Company, National
Association, a national banking association, as owner trustee (the "Owner
Trustee"), to form a statutory trust under the Delaware Statutory Trust Act
(12 Delaware Code, ss. 3801 et seq.) (the "Act").

         1. Name. The name of the statutory trust formed hereby is USAA Auto
Owner Trust 2004-1.

         2. Owner Trustee. The name and business address of the Owner Trustee
is Wachovia Trust Company, National Association, One Rodney Square, 920 King
Street, 1st Floor, Wilmington, DE 19801.

         3. Effective Date. This Certificate of Trust shall be effective upon
filing.

         IN WITNESS WHEREOF, the undersigned, being the sole trustee of the
Trust, has executed this Certificate of Trust in accordance with Section
3811(a)(1) of the Act.

                               Wachovia Trust Company, National Association,
                                 not in its individual capacity but solely as
                                 Owner Trustee

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

                                     B-1
<PAGE>

                                  APPENDIX A

                             Definitions and Usage

         (attached to the Sale and Servicing Agreement as Appendix A)

                                 Appendix A-1EXHIBIT 10.1

                                                                 EXECUTION COPY

===============================================================================

                          SALE AND SERVICING AGREEMENT

                                     among

                         USAA AUTO OWNER TRUST 2004-1,
                                   as Issuer,

                             USAA ACCEPTANCE, LLC,
                                 as Depositor,

                                      and

                           USAA FEDERAL SAVINGS BANK,
                             as Seller and Servicer

                          Dated as of February 1, 2004

===============================================================================

<PAGE>

<TABLE>
<CAPTION>

                                                  Table of Contents
                                                                                                               Page
                                                                                                               ----

<S>                   <C>                                                                                        <C>
ARTICLE I             DEFINITIONS AND USAGE.......................................................................1

ARTICLE II            TRUST PROPERTY..............................................................................1

   SECTION 2.1        Conveyance of Trust Property; Intent of the Parties.........................................1
   SECTION 2.2        Representations and Warranties of the Depositor regarding the Receivables...................2
   SECTION 2.3        Repurchase upon Breach......................................................................5
   SECTION 2.4        Custody of Receivable Files.................................................................5
   SECTION 2.5        Duties of Servicer as Custodian.............................................................6
   SECTION 2.6        Instructions; Authority to Act..............................................................7
   SECTION 2.7        Custodian's Indemnification.................................................................7
   SECTION 2.8        Effective Period and Termination............................................................7

ARTICLE III           ADMINISTRATION AND SERVICING OF RECEIVABLES AND TRUST PROPERTY..............................7

   SECTION 3.1        Duties of Servicer..........................................................................7
   SECTION 3.2        Collection of Receivable Payments...........................................................8
   SECTION 3.3        Realization Upon Receivables................................................................9
   SECTION 3.4        Allocations of Collections..................................................................9
   SECTION 3.5        Maintenance of Security Interests in Financed Vehicles......................................9
   SECTION 3.6        Covenants of Servicer......................................................................10
   SECTION 3.7        Purchase of Receivables Upon Breach........................................................10
   SECTION 3.8        Servicer Fees..............................................................................11
   SECTION 3.9        Servicer's Certificate.....................................................................11
   SECTION 3.10       Annual Statement as to Compliance; Notice of Event of Servicing Termination................11
   SECTION 3.11       Annual Independent Certified Public Accountant's Report....................................12
   SECTION 3.12       Access to Certain Documentation and Information Regarding Receivables......................12
   SECTION 3.13       Servicer Expenses..........................................................................12
   SECTION 3.14       Insurance..................................................................................13

ARTICLE IV            DISTRIBUTIONS; RESERVE ACCOUNT; STATEMENTS TO NOTEHOLDERS AND CERTIFICATEHOLDERS...........13

   SECTION 4.1        Accounts...................................................................................13
   SECTION 4.2        Collections................................................................................14
   SECTION 4.3        Application of Collections.................................................................15
   SECTION 4.4        Advances...................................................................................15

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

<S>                   <C>                                                                                        <C>
   SECTION 4.5        Additional Deposits........................................................................16
   SECTION 4.6        Distributions..............................................................................16
   SECTION 4.7        Reserve Account............................................................................19
   SECTION 4.8        Net Deposits...............................................................................21
   SECTION 4.9        Statements to Noteholders and Certificateholders...........................................21

ARTICLE V             THE DEPOSITOR..............................................................................23

   SECTION 5.1        Representations, Warranties and Covenants of Depositor.....................................23
   SECTION 5.2        Liability of Depositor; Indemnities........................................................24
   SECTION 5.3        Merger or Consolidation of, or Assumption of the Obligations of Depositor..................25
   SECTION 5.4        Limitation on Liability of Depositor and Others............................................25
   SECTION 5.5        Depositor May Own Notes or Certificates....................................................25

ARTICLE VI            THE SERVICER...............................................................................25

   SECTION 6.1        Representations of Servicer................................................................25
   SECTION 6.2        Indemnities of Servicer....................................................................27
   SECTION 6.3        Merger or Consolidation of, or Assumption of the Obligations of Servicer...................28
   SECTION 6.4        Limitation on Liability of Servicer and Others.............................................28
   SECTION 6.5        Delegation of Duties.......................................................................29
   SECTION 6.6        Servicer Not to Resign as Servicer.........................................................29
   SECTION 6.7        Servicer May Own Notes or Certificates.....................................................29

ARTICLE VII           SERVICING TERMINATION......................................................................30

   SECTION 7.1        Events of Servicing Termination............................................................30
   SECTION 7.2        Appointment of Successor Servicer..........................................................31
   SECTION 7.3        Repayment of Advances......................................................................32
   SECTION 7.4        Notification to Noteholders and Certificateholders.........................................32
   SECTION 7.5        Waiver of Past Events of Servicing Termination.............................................32

ARTICLE VIII          TERMINATION................................................................................33

   SECTION 8.1        Optional Purchase of All Receivables.......................................................33
   SECTION 8.2        Succession Upon Satisfaction and Discharge of Indenture....................................33

ARTICLE IX            MISCELLANEOUS PROVISIONS...................................................................33

   SECTION 9.1        Amendment..................................................................................33
   SECTION 9.2        Protection of Title to Trust Property......................................................35
   SECTION 9.3        GOVERNING LAW..............................................................................37
   SECTION 9.4        Notices....................................................................................37

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

<S>                   <C>                                                                                        <C>
   SECTION 9.5        Severability of Provisions.................................................................37
   SECTION 9.6        Assignment.................................................................................37
   SECTION 9.7        Further Assurances.........................................................................38
   SECTION 9.8        No Waiver; Cumulative Remedies.............................................................38
   SECTION 9.9        Third-Party Beneficiaries..................................................................38
   SECTION 9.10       Actions by Noteholders or Certificateholders...............................................38
   SECTION 9.11       Limitation of Liability of Owner Trustee and Indenture Trustee.............................38
   SECTION 9.12       Savings Clause.............................................................................39

Schedule A            Schedule of Receivables...................................................................A-1
Schedule B            Location of Receivable Files .............................................................B-1
Appendix A            Definitions and Usage............................................................Appendix A-1

</TABLE>

<PAGE>

     SALE AND SERVICING AGREEMENT, dated as of February 1, 2004 (as from time
to time amended, supplemented or otherwise modified and in effect, this
"Agreement"), among USAA AUTO OWNER TRUST 2004-1 (the "Issuer"), a Delaware
statutory trust, USAA ACCEPTANCE, LLC, a Delaware limited liability company
(the "Depositor") and USAA FEDERAL SAVINGS BANK, a federally chartered savings
association, as seller of the Receivables to the Depositor (in such capacity,
the "Seller") and servicer (in such capacity, the "Servicer").

     WHEREAS, the Issuer desires to purchase a portfolio of receivables and
related property consisting of motor vehicle installment loan contracts
originated by the Seller in the ordinary course of its business;

     WHEREAS, the Seller is concurrently selling such portfolio of receivables
and related property to the Depositor pursuant to the Receivables Purchase
Agreement, and the Depositor is willing to sell such portfolio of receivables
and related property to the Issuer; and

     WHEREAS, the Servicer is willing to service such receivables on behalf of
the Issuer.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
herein contained, and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto, intending to
be legally bound, agree as follows:

                                   ARTICLE I

                             DEFINITIONS AND USAGE

     Except as otherwise specified herein or as the context may otherwise
require, capitalized terms used but not otherwise defined herein are defined in
Appendix A hereto, which also contains rules as to usage that shall be
applicable herein.

                                  ARTICLE II

                                 TRUST PROPERTY

     SECTION 2.1 Conveyance of Trust Property; Intent of the Parties. In
consideration of the Issuer's delivery to, or upon the order of, the Depositor
of the Notes and the Certificates, the Depositor does hereby irrevocably sell,
transfer, assign and otherwise convey to the Issuer (i) without recourse
(subject to the obligations herein) all right, title and interest of the
Depositor, whether now owned or hereafter acquired, in and to the Trust
Property and (ii) funds in the amount of the Reserve Initial Deposit. The sale,
transfer, assignment and conveyance made hereunder shall not constitute and is
not intended to result in an assumption by the Issuer of any obligation of the
Depositor to the Obligors or any other Person in connection with the
Receivables and the other Trust Property or any agreement, document or
instrument related thereto. The Depositor and the Issuer intend that the sale,
transfer, assignment and conveyance of the Trust Property pursuant to this
Section 2.1 shall be a sale, and not a secured borrowing, for accounting
purposes.

<PAGE>

     SECTION 2.2 Representations and Warranties of the Depositor regarding the
Receivables. The Depositor makes the following representations and warranties
with respect to the Receivables, on which the Issuer relies in purchasing the
Receivables and pledging the same to the Indenture Trustee. Such
representations and warranties speak as of the execution and delivery of this
Agreement and as of the Transfer Date, but shall survive the sale, transfer and
assignment of the Receivables by the Depositor to the Issuer and the pledge of
the Receivables by the Issuer to the Indenture Trustee pursuant to the
Indenture.

       (i)    Schedule of Receivables. The information set forth in Schedule A
              to this Agreement with respect to each Receivable is true and
              correct in all material respects, and no selection procedures
              adverse to the Securityholders have been used in selecting the
              Receivables from all receivables owned by the Seller which meet
              the selection criteria specified herein.

       (ii)   No Sale or Transfer. No Receivable has been sold, transferred,
              assigned or pledged by the Depositor to any Person other than the
              Issuer.

       (iii)  Good Title. Immediately prior to the transfer and assignment of
              the Receivables to the Issuer herein contemplated, the Depositor
              had good and marketable title to each Receivable free and clear
              of all Liens and rights of others; and, immediately upon the
              transfer thereof, the Issuer, has either (i) good and marketable
              title to each Receivable, free and clear of all of all Liens and
              rights of others, and the transfer has been perfected under
              applicable law or (ii) a first priority perfected security
              interest in each Receivable.

       (iv)   Receivable Files. The Receivable Files shall be kept at one or
              more of the locations specified in Schedule B hereto.

       (v)    Characteristics of Receivables. Each Receivable (a) has been
              originated for the retail financing of a Financed Vehicle by an
              Obligor located in one of the States of the United States or the
              District of Columbia; (b) contains customary and enforceable
              provisions such that the rights and remedies of the holder
              thereof are adequate for realization against the collateral of
              the benefits of the security; and (c) provides for fully
              amortizing level scheduled monthly payments (provided that the
              payment in the last month in the life of the Receivable may be
              different from the level scheduled payment) and for accrual of
              interest at a fixed rate according to the simple interest method.

       (vi)   Compliance with Law. Each Receivable and each sale of the related
              Financed Vehicle complied at the time it was originated or made,
              and complies on and after the Cut-off Date, in all material
              respects with all requirements of applicable federal, state, and
              local laws, and regulations thereunder, including usury laws, the
              Federal Truth-in-Lending Act, the Equal Credit Opportunity Act,
              the Fair Credit Reporting Act, the Federal Trade Commission Act,
              the Magnuson-Moss Warranty Act, Federal Reserve Board Regulations
              B and Z, state adaptations of the National Consumer Act and of
              the Uniform Consumer Credit Code, and any

                                       2
<PAGE>

              other consumer credit, equal opportunity, and disclosure laws
              applicable to such Receivable and sale.

       (vii)  Binding Obligation. Each Receivable constitutes the legal, valid,
              and binding payment obligation in writing of the Obligor,
              enforceable by the holder thereof in all material respects in
              accordance with its terms, subject, as to enforcement, to
              applicable bankruptcy, insolvency, reorganization, liquidation
              and other similar laws and equitable principles relating to or
              affecting the enforcement of creditors' rights.

       (viii) No Government Obligor. No Receivable is due from the United
              States of America or any state or from any agency, department,
              instrumentality or political subdivision of the United States of
              America or any state or local municipality and no Receivable is
              due from a business except to the extent that such receivable has
              a personal guaranty.

       (ix)   Security Interest in Financed Vehicle. Immediately prior to the
              sale and assignment thereof to the Issuer as herein contemplated,
              each Receivable was secured by a validly perfected first priority
              security interest in the Financed Vehicle in favor of the Seller
              as secured party or all necessary and appropriate action with
              respect to such Receivable had been taken to perfect a first
              priority security interest in the related Financed Vehicle in
              favor of the Seller as secured party, which security interest is
              assignable and has been so assigned by the Seller to the
              Depositor and by the Depositor to the Issuer.

       (x)    Receivables in Force. No Receivable has been satisfied,
              subordinated, or rescinded, nor has any Financed Vehicle been
              released from the Lien granted by the related Receivable in whole
              or in part.

       (xi)   No Waiver. No provision of a Receivable has been waived in such a
              manner that such Receivable fails either to meet all of the
              representations and warranties made by the Depositor herein with
              respect thereto pursuant to this Section 2.2.

       (xii)  No Amendments. No Receivable has been amended except pursuant to
              instruments included in the Receivable Files and no such
              amendment has caused such Receivable either to fail to meet all
              of the representations and warranties made by the Depositor
              herein with respect thereto pursuant to this Section 2.2.

       (xiii) No Defenses. As of the Cut-off Date, there are no rights of
              rescission, setoff, counterclaim, or defense, and the Depositor
              has no knowledge of the same being asserted or threatened, with
              respect to any Receivable.

       (xiv)  No Liens. As of the Cut-off Date, the Depositor has no knowledge
              of any Liens, claims that have been filed, including Liens for
              work, labor, materials or unpaid taxes relating to a Financed
              Vehicle, that would be Liens prior to, or equal or coordinate
              with, the Lien granted by the Receivable.

                                       3
<PAGE>

       (xv)   No Default. Except for payment defaults continuing for a period
              of not more than thirty (30) days as of the Cut-off Date, the
              Depositor has no knowledge that a default, breach, violation, or
              event permitting acceleration under the terms of any Receivable
              exists; the Depositor has no knowledge that a continuing
              condition that with notice or lapse of time would constitute a
              default, breach, violation, or event permitting acceleration
              under the terms of any Receivable exists; and the Depositor has
              not waived any of the foregoing.

       (xvi)  Insurance. Each Receivable requires that the Obligor thereunder
              obtain comprehensive and collision insurance covering the
              Financed Vehicle.

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

       (xviii) All Filings Made. No filings (other than UCC filings which have
               been made) or other actions are necessary in any jurisdiction to
               give the Issuer a first priority perfected security interest in
               the Receivables and to give the Indenture Trustee a first
               priority perfected security interest in the Receivables.

       (xix)  One Original. With respect to any Receivable for which an
              original executed copy exists, there is no more than one original
              executed copy of such Receivable which, immediately prior to the
              delivery thereof to the Servicer, as custodian for the Indenture
              Trustee, was in the possession of the Seller.

       (xx)   Security. Each Receivable is secured by a new or used automobile
              or light-duty truck.

       (xxi)  Maturity of Receivables. Each Receivable has a remaining
              maturity, as of the Cut-off Date, of not less than 6 months nor
              greater than 72 months and an original maturity of at least 10
              months and not more than 72 months. No Receivable has a scheduled
              maturity later than March 6, 2010.

       (xxii) Annual Percentage Rate. Each Receivable is a fully-amortizing
              simple interest contract which bears interest at a fixed rate per
              annum and which provides for level scheduled monthly payments
              (except for the last payment, which may be minimally different
              from the level payments) over its respective remaining term, is
              not secured by any interest in real estate, and has not been
              identified on the computer files of the Seller as relating to
              Obligors who have requested a reduction in the periodic finance
              charges, as of the Cut-off Date, by application of the
              Servicemembers Civil Relief Act.

       (xxiii) No Repossessions. Each Receivable is secured by a Financed
               Vehicle that, as of the Cut-off Date, has not been repossessed
               without reinstatement of such Receivable.

                                       4
<PAGE>

       (xxiv) Obligor Not Subject to Bankruptcy Proceedings. Each Receivable
              has been entered into by an Obligor who has not been identified
              on the computer files of the Seller as being a debtor in any
              bankruptcy proceeding as of the Cut-off Date.

       (xxv)  No Overdue Payments. No Receivable has any payment that is more
              than thirty (30) days past due as of the Cut-off Date.

       (xxvi) Tangible Chattel Paper. The Receivables constitute "tangible
              chattel paper" within the meaning of UCC Section 9-102.

       (xxvii) Remaining Principal Balance. Each Receivable had a remaining
               principal balance, as of the Cut-off Date, of at least $800.

     SECTION 2.3 Repurchase upon Breach. Each of the Depositor, the Servicer,
the Issuer and the Owner Trustee shall inform the other parties to this
Agreement promptly, in writing, upon the discovery by it of any breach of the
Depositor's representations and warranties pursuant to Section 2.2. Unless the
breach shall have been cured by the last day of the second Collection Period
following written notice to the Indenture Trustee of such breach, the Indenture
Trustee shall enforce the obligation of the Depositor under this Section 2.3 to
repurchase any Receivable, the Issuer's interest in which is materially and
adversely affected by the breach as of such last day (or, at the Depositor's
option, the last day of the first Collection Period following the discovery).
In consideration of the purchase of the Receivable, the Depositor shall remit
the Purchase Amount (less any Liquidation Proceeds deposited, or to be
deposited, in the Collection Account with respect to such Receivable pursuant
to Section 3.3), in the manner specified in Section 4.5. The sole remedy of the
Issuer, the Owner Trustee, the Indenture Trustee, the Noteholders or the
Certificateholders with respect to a breach of the Depositor's representations
and warranties pursuant to Section 2.2 shall be to require the Depositor to
repurchase such Receivables pursuant to this Section 2.3. The obligation of the
Depositor to repurchase under this Section 2.3 shall not be solely dependent
upon the actual knowledge of the Depositor of any breached representation or
warranty. Neither the Owner Trustee nor the Indenture Trustee shall have any
duty to conduct an affirmative investigation as to the occurrence of any
condition requiring the repurchase of any Receivable pursuant to this Section
2.3 or the eligibility of any Receivable for purposes of this Agreement.
Notwithstanding anything herein to the contrary, the Depositor shall only be
obligated to pay such Purchase Amount and repurchase the related Receivable to
the extent it receives the Purchase Amount from the Seller pursuant to Section
7.02 of the Receivables Purchase Agreement.

     SECTION 2.4 Custody of Receivable Files. To assure uniform quality in
servicing the Receivables and to reduce administrative costs, the Issuer, upon
the execution and delivery of this Agreement, hereby revocably appoints the
Servicer, and the Servicer hereby accepts such appointment, to act as the agent
of the Issuer and the Indenture Trustee as custodian of the following documents
or instruments, which are hereby constructively delivered to the Indenture
Trustee, as pledgee of the Issuer pursuant to the Indenture, with respect to
each Receivable:

          (i) The original executed Receivable or, if no such original exists,
     a copy thereof.

                                       5
<PAGE>

          (ii) The original credit application fully executed by the Obligor or
     a photocopy thereof or a record thereof on a computer file, diskette or on
     microfiche.

          (iii) The notice of recorded Lien or such documents that the Servicer
     or the Depositor shall keep on file, in accordance with its customary
     procedures, evidencing the first priority perfected security interest of
     the Seller in the Financed Vehicle.

          (iv) Any and all other documents (including any computer file,
     diskette or microfiche) that the Servicer or the Seller shall keep on
     file, in accordance with its customary procedures, relating to a
     Receivable, an Obligor (to the extent relating to a Receivable), or a
     Financed Vehicle.

     The Servicer acknowledges that it holds the documents and instruments
relating to the Receivables for the benefit of the Issuer and the Indenture
Trustee. The Issuer and the Indenture Trustee shall have no responsibility to
monitor the Servicer's performance as custodian and shall have no liability in
connection with the Servicer's performance of such duties hereunder.

SECTION 2.5 Duties of Servicer as Custodian.

     (a) Safekeeping. The Servicer shall hold the Receivable Files for the
benefit of the Issuer and the Indenture Trustee and shall maintain such
accurate and complete accounts, records and computer systems pertaining to each
Receivable File as shall enable the Servicer and the Issuer to comply with the
terms and conditions of this Agreement, and the Indenture Trustee to comply
with the terms and conditions of the Indenture. In performing its duties as
custodian, the Servicer shall act with reasonable care, using that degree of
skill and attention that the Servicer exercises with respect to the receivable
files relating to all comparable automotive receivables that the Servicer
services for itself or others. The Servicer shall conduct, or cause to be
conducted, periodic audits of the Receivable Files held by it under this
Agreement and of the related accounts, records and computer systems, in such a
manner as shall enable the Issuer or the Indenture Trustee to identify all
Receivables Files and such related accounts, records and computer systems and
verify the accuracy of the Servicer's record keeping. The Servicer shall
promptly report to the Issuer and the Indenture Trustee any failure on its part
to hold the Receivable Files and maintain its accounts, records, and computer
systems as herein provided and shall promptly take appropriate action to remedy
any such failure. Nothing herein shall be deemed to require an initial review
or any periodic review by the Issuer, the Owner Trustee or the Indenture
Trustee of the Receivable Files.

     (b) Maintenance of and Access to Records. The Servicer shall maintain each
Receivable File at its offices specified in Schedule B-1 to this Agreement, or
at such other office as shall be specified to the Issuer and the Indenture
Trustee by 30 days' prior written notice. The Servicer shall make available to
the Issuer and the Indenture Trustee or their duly authorized representatives,
attorneys, or auditors, the Receivable Files and the related accounts, records
and computer systems maintained by the Servicer during normal business hours as
the Issuer or the Indenture Trustee shall reasonably request, which does not
unreasonably interfere with the Servicer's normal operations.

                                       6
<PAGE>

     (c) Release of Documents. Upon written instructions from the Indenture
Trustee, the Servicer shall release or cause to be released any document in the
Receivable Files to the Indenture Trustee, the Indenture Trustee's agent or the
Indenture Trustee's designee, as the case may be, at such place or places as
the Indenture Trustee may reasonably designate, as soon as is reasonably
practicable, to the extent it does not unreasonably interfere with the
Servicer's normal operations. The Servicer shall not be responsible for any
loss occasioned by the failure of the Indenture Trustee or its agent or
designee to return any document or any delay in doing so.

     SECTION 2.6 Instructions; Authority to Act. All instructions from the
Indenture Trustee shall be in writing and signed by an Authorized Officer of
the Indenture Trustee, and the Servicer shall be deemed to have received proper
instructions with respect to the Receivable Files upon its receipt of such
written instructions.

     SECTION 2.7 Custodian's Indemnification. The Servicer, as custodian, shall
indemnify the Issuer, the Owner Trustee and the Indenture Trustee for any and
all liabilities, obligations, losses, compensatory damages, payments, costs, or
expenses of any kind whatsoever that may be imposed on, incurred, or asserted
against the Issuer, the Owner Trustee or the Indenture Trustee as the result of
any improper act or omission in any way relating to the maintenance and custody
by the Servicer as custodian of the Receivable Files; provided, however, that
the Servicer shall not be liable (i) to the Issuer for any portion of any such
amount resulting from the willful misfeasance, bad faith, or negligence of the
Indenture Trustee, the Owner Trustee or the Issuer, (ii) to the Owner Trustee
for any portion of any such amount resulting from the willful misfeasance, bad
faith, or negligence of the Indenture Trustee, the Owner Trustee or the Issuer
and (iii) to the Indenture Trustee for any portion of any such amount resulting
from the willful misfeasance, bad faith, or negligence of the Indenture
Trustee, the Owner Trustee or the Issuer.

     SECTION 2.8 Effective Period and Termination. The Servicer's appointment
as custodian shall become effective as of the Cut-off Date and shall continue
in full force and effect until terminated pursuant to this Section 2.8. If the
Bank shall resign as Servicer in accordance with the provisions of this
Agreement or if all of the rights and obligations of the Servicer shall have
been terminated under Section 7.1, the appointment of the Servicer as custodian
hereunder may be terminated by the Indenture Trustee, or by the holders of
Notes evidencing not less than a majority of the principal amount of the Notes
Outstanding (or if no Notes are Outstanding, by holders of Certificates
evidencing not less than a majority of the Certificate Balance), in the same
manner as the Indenture Trustee or such Securityholders may terminate the
rights and obligations of the Servicer under Section 7.1. As soon as
practicable after any termination of such appointment, the Servicer shall
deliver to the Indenture Trustee or the Indenture Trustee's agent the
Receivable Files and the related accounts and records maintained by the
Servicer at such place or places as the Indenture Trustee may reasonably
designate.

                                  ARTICLE III

         ADMINISTRATION AND SERVICING OF RECEIVABLES AND TRUST PROPERTY

     SECTION 3.1 Duties of Servicer. The Servicer shall manage, service,
administer and make collections on the Receivables with reasonable care, using
that degree of skill and attention

                                       7
<PAGE>

that the Servicer exercises with respect to all comparable new or used
automobile and light-duty truck receivables that it services for itself. The
Servicer's duties shall include collection and posting of all payments,
responding to inquiries of Obligors on such Receivables, investigating
delinquencies, sending payment coupons to Obligors, reporting tax information
to Obligors, accounting for collections, furnishing monthly and annual
statements to the Owner Trustee and the Indenture Trustee with respect to
distributions, making Advances pursuant to Section 4.4, preparing (or causing
to be prepared) the tax returns of the Trust in accordance with Section 5.6 of
the Trust Agreement and, if requested to do so, providing the certifications
required, pursuant to Section 5.1(b) hereof. The Servicer shall follow its
customary standards, policies and procedures in performing its duties as
Servicer. Without limiting the generality of the foregoing, the Servicer is
hereby authorized and empowered to execute and deliver, on behalf of itself,
the Issuer, the Owner Trustee, the Indenture Trustee, the Noteholders, the
Certificateholders, or any of them, any and all instruments of satisfaction or
cancellation, or partial or full release or discharge, and all other comparable
instruments, with respect to such Receivables or to the Financed Vehicles
securing such Receivables. If the Servicer shall commence a legal proceeding to
enforce a Receivable, the Issuer (in the case of a Receivable other than a
Purchased Receivable) shall thereupon be deemed to have automatically assigned,
solely for the purpose of collection, such Receivable to the Servicer. If in
any enforcement suit or legal proceeding it shall be held that the Servicer may
not enforce a Receivable on the ground that it shall not be a real party in
interest or a holder entitled to enforce the Receivable, the Issuer shall, at
the Servicer's expense and direction, take steps to enforce the Receivable,
including bringing suit in its name or the names of the Indenture Trustee, the
Noteholders, the Certificateholders, or any of them. The Issuer shall furnish
the Servicer with any powers of attorney and other documents reasonably
necessary or appropriate to enable the Servicer to carry out its servicing and
administrative duties hereunder.

     SECTION 3.2 Collection of Receivable Payments. The Servicer shall make
reasonable efforts to collect all payments called for under the terms and
provisions of the Receivables as and when the same shall become due and shall
follow such collection procedures as it follows with respect to all comparable
new or used automobile and light-duty truck receivables that it services for
itself. The Servicer shall not change the amount of or reschedule the due date
of any scheduled payment of a Receivable to a date more than 30 days from the
original due date of such scheduled payment, change the annual percentage rate
of or extend any Receivable or change any material term of a Receivable, except
as provided by the terms of the Receivable or of this Agreement or as required
by law or court order; provided, however, that the Servicer may extend any
Receivable that is in default or with respect to which default is reasonably
foreseeable and that would be acceptable to the Servicer with respect to
comparable new or used automobile and light-duty truck receivables that it
services for itself if (a) the amount on deposit in the Reserve Account is
greater than zero at the time of the extension, (b) the total credit-related
extensions granted on the Receivable will not exceed four months in the
aggregate, (c) the total number of credit-related extensions granted on the
Receivable will not exceed two, and (d) the maturity of such Receivable will
not be extended beyond March 6, 2010. If, as a result of inadvertently
rescheduling or extending payments, such rescheduling or extension breaches any
of the terms of the proviso to the preceding sentence, then the Servicer shall
be obligated to purchase such Receivable pursuant to Section 3.7. For the
purpose of such purchases pursuant to Section 3.7, notice shall be deemed to
have been received by the Servicer

                                       8
<PAGE>

at such time as shall make purchase mandatory as of the last day of the
Collection Period during which the discovery of such breach occurred.

     Notwithstanding anything to the contrary herein, the Servicer may
implement programs that grant payment extensions in respect of receivables that
are not delinquent. Any such program shall be implemented with the approval of
the senior officer's credit committee of the Servicer in accordance with the
Servicer's general lending and policy guidelines. Any such payment extension
may extend the maturity of the applicable receivable beyond its original term
to maturity. Notwithstanding anything to the contrary herein, the Servicer may
also reduce the interest rate on Receivables affected by the application of the
Servicemembers Civil Relief Act to a rate that is lower than the maximum rate
prescribed by the Servicemembers Civil Relief Act and may readjust the payment
schedule for any Receivable that is affected by the application of the
Servicemembers Civil Relief Act until the maturity of the receivable.

     SECTION 3.3 Realization Upon Receivables. On behalf of the Issuer, the
Servicer shall use reasonable efforts, consistent with its customary standards,
policies and procedures, to repossess or otherwise convert the ownership of the
Financed Vehicle securing any Receivable as to which the Servicer shall have
determined to be a Defaulted Receivable or otherwise (and shall specify any
such Defaulted Receivable to the Indenture Trustee no later than the
Determination Date following the Collection Period in which the Servicer shall
have made such determination). The Servicer shall follow such customary
standards, policies and procedures as it shall deem necessary or advisable in
its servicing of comparable receivables, which may include selling the Financed
Vehicle at public or private sale. The Servicer shall be entitled to recover
from proceeds all reasonable expenses incurred by it in the course of
converting the Financed Vehicle into cash proceeds. The Liquidation Proceeds
(net of such expenses) realized in connection with any such action with respect
to a Receivable shall be deposited by the Servicer in the Collection Account in
the manner specified in Section 4.2 and shall be applied to reduce (or to
satisfy, as the case may be) the Purchase Amount of the Receivable, if such
Receivable is to be repurchased by the Depositor pursuant to Section 2.3, or is
to be purchased by the Servicer pursuant to Section 3.7. The foregoing shall be
subject to the provision that, in any case in which the Financed Vehicle shall
have suffered damage, the Servicer shall not be required to expend funds in
connection with the repair or the repossession of such Financed Vehicle unless
it shall determine in its discretion that such repair and/or repossession will
increase the Liquidation Proceeds by an amount greater than the amount of such
expenses.

     SECTION 3.4 Allocations of Collections. If an Obligor is obligated under
one or more Receivables and also under one or more other assets owned by the
Bank or assigned by the Bank to third parties, then any payment on any such
asset received from or on behalf of such Obligor shall, if identified as being
made with respect to a particular item or asset, be applied to such item, and
otherwise shall be allocated by the Bank in accordance with its customary
standards, policies and procedures.

     SECTION 3.5 Maintenance of Security Interests in Financed Vehicles. The
Servicer shall, in accordance with its customary procedures, take such steps as
are necessary to maintain perfection of the security interest created by each
Receivable in the related Financed Vehicle. The Issuer hereby authorizes the
Servicer to take such steps as are necessary to re-perfect such

                                       9
<PAGE>

security interest on behalf of the Issuer and the Indenture Trustee in the
event of the relocation of a Financed Vehicle or for any other reason, in
either case, when the Servicer has knowledge of the need for such
re-perfection. In the event that the assignment of a Receivable to the Issuer
is insufficient, without a notation on the related Financed Vehicle's
certificate of title, or without fulfilling any additional administrative
requirements under the laws of the state in which the Financed Vehicle is
located, to transfer to the Issuer a perfected security interest in the related
Financed Vehicle, the Servicer hereby agrees that the Servicer's listing as the
secured party on the certificate of title is deemed to be in its capacity as
agent of the Issuer and the Indenture Trustee and further agrees to hold such
certificate of title as the agent and custodian of the Issuer and the Indenture
Trustee; provided that the Servicer shall not, nor shall the Issuer or the
Indenture Trustee have the right to require that the Servicer, make any such
notation on the related Financed Vehicles' certificate of title or fulfill any
such additional administrative requirement of the laws of the state in which a
Financed Vehicle is located.

     SECTION 3.6 Covenants of Servicer. The Servicer shall not (i) release the
Financed Vehicle securing each such Receivable from the security interest
granted by such Receivable in whole or in part except in the event of payment
in full by or on behalf of the Obligor thereunder, (ii) impair the rights of
the Trust or the Indenture Trustee in the Receivables, or (iii) increase the
number of payments under a Receivable, increase the Amount Financed under a
Receivable or extend or forgive payments on a Receivable, except as provided in
Section 3.2. In the event that at the end of the scheduled term of any
Receivable, the outstanding principal amount thereof is such that the final
payment to be made by the related Obligor is larger than the regularly
scheduled payment of principal and interest made by such Obligor, the Servicer
may permit such Obligor to pay such remaining principal amount in more than one
payment of principal and interest; provided that the last such payment shall be
due on or prior to the Collection Period immediately preceding the Class B
Final Scheduled Payment Date.

     SECTION 3.7 Purchase of Receivables Upon Breach. (a) The Servicer, the
Depositor or the Owner Trustee, as the case may be, promptly shall inform the
other parties to this Agreement, in writing, upon the discovery of any breach
pursuant to Section 3.2, 3.5 or 3.6. Unless the breach shall have been cured by
the last day of the second Collection Period following such discovery (or, at
the Servicer's election, the last day of the first following Collection
Period), the Servicer shall purchase any Receivable materially and adversely
affected by such breach as determined by the Indenture Trustee (which shall
include any Receivable as to which a breach of Section 3.6 has occurred) at the
Purchase Amount (less any Liquidation Proceeds deposited, or to be deposited,
in the Collection Account with respect to such Receivable pursuant to Section
3.3). In consideration of the purchase of such Receivable, the Servicer shall
remit the Purchase Amount in the manner specified in Section 4.5. For purposes
of this Section 3.7, the Purchase Amount shall consist in part of a release by
the Servicer of all rights of reimbursement with respect to Outstanding
Advances on the Receivable. The sole remedy of the Issuer, the Owner Trustee,
the Indenture Trustee, the Noteholders or the Certificateholders with respect
to a breach pursuant to Section 3.2, 3.5 or 3.6 shall be to require the
Servicer to purchase Receivables pursuant to this Section 3.7.

     (b) With respect to all Receivables purchased pursuant to this Section
3.7, the Issuer shall assign to the Servicer or the Depositor, as applicable,
without recourse, representation or

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warranty, all of the Issuer's right, title and interest in and to such
Receivables and all security and documents relating thereto.

     SECTION 3.8 Servicer Fees. The Servicer shall be entitled to any interest
earned on the amounts deposited in the Collection Account during each
Collection Period plus all late fees, prepayment charges and other
administrative fees and expenses or similar charges, if any, allowed by
applicable law and the terms of the Receivables during each Collection Period
(the "Supplemental Servicing Fee"). The Servicer also shall be entitled to the
Servicing Fee, as provided herein.

     SECTION 3.9 Servicer's Certificate. On or prior to the Determination Date
for each Payment Date, the Servicer shall deliver to the Depositor, the Owner
Trustee, each Note Paying Agent and Certificate Paying Agent, the Indenture
Trustee and the Seller, with a copy to the Rating Agencies, a Servicer's
Certificate containing all information (including all specific dollar amounts)
necessary to make the transfers and distributions pursuant to Sections 4.3,
4.4, 4.5, 4.6 and 4.7 and Section 8.2 of the Indenture for the Collection
Period preceding the date of such Servicer's Certificate, together with the
written statements to be furnished by the Owner Trustee to Certificateholders
pursuant to Section 4.9 and by the Indenture Trustee to the Noteholders
pursuant to Section 4.9 hereof and Section 6.6 of the Indenture. Receivables
purchased or to be purchased by the Servicer or the Depositor shall be
identified by the Servicer by the Seller's account number with respect to such
Receivable (as specified in the Schedule of Receivables).

     SECTION 3.10 Annual Statement as to Compliance; Notice of Event of
Servicing Termination. (a) The Servicer shall deliver to the Owner Trustee, the
Indenture Trustee and each Rating Agency on or before March 31 of each year
beginning March 31, 2005, an Officer's Certificate, with respect to the
preceding 12-month period (or such shorter period in the case of the first such
certificate), stating that (i) a review of the activities of the Servicer
during the preceding 12-month period (or such shorter period in the case of the
first such certificate) and of its performance under this Agreement has been
made under such officer's supervision and (ii) to the best of such officer's
knowledge, based on such review, the Servicer has fulfilled all its obligations
under this Agreement throughout such period, or, if there has been a default in
the fulfillment of any such obligation, specifying each such default known to
such officer and the nature and status thereof. A copy of such Officer's
Certificate and the report referred to in Section 3.11 may be obtained by any
Certificateholder by a request in writing to the Owner Trustee, or by any
Noteholder or Person certifying that it is a Note Owner by a request in writing
to the Indenture Trustee, in either case addressed to the applicable Corporate
Trust Office. Upon the telephone request of the Owner Trustee, the Indenture
Trustee shall promptly furnish the Owner Trustee a list of Noteholders as of
the date specified by the Owner Trustee.

     (b) The Servicer shall deliver to the Owner Trustee, the Indenture Trustee
and each Rating Agency promptly after having obtained knowledge thereof, but in
no event later than five (5) Business Days thereafter, written notice in an
Officer's Certificate of any event which with the giving of notice or lapse of
time, or both, would become an Event of Servicing Termination under Section
7.1. The Seller shall deliver to the Owner Trustee, the Indenture Trustee and
each Rating Agency promptly after having obtained knowledge thereof, but in no
event later than five (5) Business Days thereafter, written notice in an
Officer's Certificate of any

                                      11
<PAGE>

event which with the giving of notice or lapse of time, or both, would become
an Event of Servicing Termination under clause (a)(ii) of Section 7.1.

     SECTION 3.11 Annual Independent Certified Public Accountant's Report. The
Servicer shall cause a firm of independent certified public accountants, who
may also render other services to the Servicer, the Seller or the Depositor, to
deliver to the Owner Trustee and the Indenture Trustee on or before March 31 of
each year beginning March 31, 2005 with respect to the prior calendar year (or
such shorter period in the case of the first such report) a report addressed to
the board of directors of the Servicer and to the Owner Trustee and the
Indenture Trustee, to the effect that such firm has examined the automobile and
light-duty truck receivable servicing functions of the Servicer for such
period, including the Servicer's procedures and records relating to servicing
of the Receivables under this Agreement and that, on the basis of such
examination, such firm is of the opinion that such servicing has been conducted
during such period in compliance with this Agreement except for (a) such
exceptions as such firm believes to be immaterial and (b) such other exceptions
as shall be set forth in such firm's report. In addition, such report shall
state that such firm has compared the mathematical calculations of each amount
set forth in the Servicer's Certificates forwarded by the Servicer pursuant to
Section 3.9 during the period covered by such report (which shall be the
preceding calendar year or such shorter period in the case of the first such
report) with the Servicer's computer reports which were the source of such
amounts and that on the basis of such comparison, such firm is of the opinion
that such amounts are in agreement, except for such exceptions as such firm
believes to be immaterial and such other exceptions as shall be set forth in
such statement. In addition, such report shall set forth the procedures
performed in conjunction with the examination and shall contain a statement of
such firm as to the accuracy of the amounts set forth in the Servicer's
Certificates delivered pursuant to Section 3.9 in such period.

     The report will also indicate that the firm is independent of the Servicer
within the meaning of the Code of Professional Ethics of the American Institute
of Certified Public Accountants.

     SECTION 3.12 Access to Certain Documentation and Information Regarding
Receivables. The Servicer shall provide to the Certificateholders, the
Indenture Trustee and the Noteholders access to the Receivable Files in such
cases where the Certificateholders, the Indenture Trustee or the Noteholders
shall be required by applicable statutes or regulations to review such
documentation. Access shall be afforded without charge, but only upon
reasonable request and during the normal business hours at the respective
offices of the Servicer. Nothing in this Section 3.12 shall affect the
obligation of the Servicer to observe any applicable law prohibiting disclosure
of information regarding the Obligors, and the failure of the Servicer to
provide access to information as a result of such obligation shall not
constitute a breach of this Section 3.12.

     SECTION 3.13 Servicer Expenses. The Servicer shall be required to pay all
expenses incurred by it in connection with its activities hereunder, including
fees, expenses (including counsel fees and expenses) and disbursements of the
Owner Trustee and the Indenture Trustee, independent accountants, taxes imposed
on the Servicer and expenses incurred in connection with distributions and
reports to Noteholders and Certificateholders.

                                      12
<PAGE>

     SECTION 3.14 Insurance. The Servicer, in accordance with its customary
servicing procedures and underwriting standards, shall require that each
Obligor shall have obtained and shall maintain comprehensive and collision
insurance covering the related Financed Vehicle as of the execution of the
Receivable. The Servicer shall enforce its rights under the Receivables to
require the Obligors to maintain comprehensive and collision insurance, in
accordance with the Servicer's customary practices and procedures with respect
to comparable new or used automobile and light-duty truck receivables that it
services for itself or others.

                                  ARTICLE IV

         DISTRIBUTIONS; RESERVE ACCOUNT; STATEMENTS TO NOTEHOLDERS AND
                              CERTIFICATEHOLDERS

     SECTION 4.1 Accounts. (a) The Servicer shall, prior to the Closing Date,
cause to be established and maintained an Eligible Deposit Account in the name
"JPMorgan Chase Bank, as Indenture Trustee, as secured party from USAA Auto
Owner Trust 2004-1", initially at the corporate trust department of the
Indenture Trustee, which shall be designated as the "Collection Account". The
Collection Account shall be under the sole dominion and control of the
Indenture Trustee; provided, that the Servicer may make deposits to and direct
the Indenture Trustee in writing to make withdrawals from the Collection
Account in accordance with the terms of the Basic Documents. The Collection
Account will be established and maintained pursuant to an account agreement
which specifies New York law as the governing law. In addition, the Collection
Account shall be established and maintained at an institution which agrees in
writing that for so long as the Notes are outstanding it will comply with
entitlement orders (as defined in Article 8 of the UCC) originated by the
Indenture Trustee without further consent of the Issuer. All monies deposited
from time to time in the Collection Account shall be held by the Indenture
Trustee as secured party for the benefit of the Noteholders and, after payment
in full of the Notes, as agent of the Issuer and as part of the Trust Property.
All deposits to and withdrawals from the Collection Account shall be made only
upon the terms and conditions of the Basic Documents.

     If the Servicer is required to remit collections pursuant to the first
sentence of Section 4.2, all amounts held in the Collection Account shall, to
the extent permitted by applicable law, rules and regulations, be invested, as
directed in writing by the Servicer, by the bank or trust company then
maintaining the Collection Account in specified Permitted Investments that
mature not later than the Business Day immediately prior to the Payment Date
for the Collection Period to which such amounts relate and such Permitted
Investments shall be held to maturity. All interest and other income (net of
losses and investment expenses) on funds on deposit in the Collection Account
shall be withdrawn from the Collection Account at the written direction of the
Servicer and shall be paid to the Servicer. The Indenture Trustee shall not be
liable for investment losses in Permitted Investments made in accordance with
directions from the Servicer. In the event that the Collection Account is no
longer to be maintained at the corporate trust department of the Indenture
Trustee, the Servicer shall, with the Indenture Trustee's or Issuer's
assistance as necessary, cause an Eligible Deposit Account to be established as
the Collection Account within ten (10) Business Days (or such longer period not
to exceed

                                      13
<PAGE>

thirty (30) calendar days as to which each Rating Agency may consent) and give
written notice of the location and account number of such account to the
Indenture Trustee.

     (b) The Servicer shall, prior to the Closing Date, establish and maintain
an administrative subaccount within the Collection Account at the bank or trust
company then maintaining the Collection Account, which subaccount shall be
designated as the "Principal Distribution Account". The Principal Distribution
Account is established and maintained solely for administrative purposes.

     (c) The Servicer shall, prior to the Closing Date, cause an Eligible
Deposit Account to be established and maintained, in the name "USAA Auto Owner
Trust 2004-1 Certificate Distribution Account", initially at the corporate
trust department of the Owner Trustee, which shall be designated as the
"Certificate Distribution Account". The Certificate Distribution Account shall
be under the sole dominion and control of the Owner Trustee. All monies
deposited from time to time in the Certificate Distribution Account pursuant to
this Agreement and the Indenture shall be held by the Owner Trustee as part of
the Trust Property and shall be applied as provided in the Basic Documents. In
the event that the Certificate Distribution Account is no longer to be
maintained at the corporate trust department of the Owner Trustee, the Servicer
shall cause an Eligible Deposit Account to be established as the Certificate
Distribution Account within ten (10) Business Days (or such longer period not
to exceed thirty (30) calendar days as to which each Rating Agency may consent)
and give written notice of the location and account number of such account to
the Owner Trustee. The Certificate Distribution Account will be established and
maintained pursuant to an account agreement which specifies New York law as the
governing law.

     SECTION 4.2 Collections. The Servicer shall remit to the Collection
Account within two (2) Business Days of the receipt thereof (i) all payments by
or on behalf of the Obligors (but excluding Purchased Receivables) and (ii) all
Liquidation Proceeds, both as collected during the Collection Period; provided
that the Bank, so long as it is acting as the Servicer and no Event of
Servicing Termination has occurred and is continuing, may make remittances of
collections on a less frequent basis than that specified in the immediately
preceding sentence. It is understood that such less frequent remittances may be
made only on the specific terms and conditions set forth below in this Section
4.2 and only for so long as such terms and conditions are fulfilled.
Accordingly, notwithstanding the provisions of the first sentence of this
Section 4.2, the Servicer shall remit collections received during a Collection
Period to the Collection Account in immediately available funds on the Business
Day preceding the related Payment Date but only for so long as the Monthly
Remittance Condition is satisfied. The Owner Trustee or the Indenture Trustee
shall not be deemed to have knowledge of any event or circumstance in the
definition of Monthly Remittance Condition that would require remittance by the
Servicer to the Collection Account within two (2) Business Days of receipt as
aforesaid unless the Owner Trustee or the Indenture Trustee has received
written notice of such event or circumstance from the Seller or the Servicer in
an Officer's Certificate or from the holders of Notes evidencing not less than
25% of the principal amount of the Notes Outstanding or from the
Certificateholders of Certificates evidencing not less than 25% of the
Certificate Balance or a Trustee Officer in the Corporate Trust Office with
knowledge hereof or familiarity herewith has actual knowledge of

                                      14
<PAGE>

such event or circumstance. For purposes of this Article IV the phrase
"payments by or on behalf of Obligors" shall mean payments made by Persons
other than the Servicer or by other means.

     SECTION 4.3 Application of Collections. For the purposes of this
Agreement, as of the close of business on the last day of each Collection
Period, all collections for the Collection Period with respect to each
Receivable (other than a Purchased Receivable) shall be applied by the Servicer
first to the amount of interest accrued on such Receivable to the date of
receipt, then to reduce the scheduled principal amount outstanding on the
Receivable to the extent of the remaining scheduled payment and then to any
outstanding fees under the terms of the Receivable. Amounts paid by the
Depositor, the Seller or the Servicer in respect of Purchased Receivables shall
be allocated first to any interest accrued on the related Receivable and then
to the Principal Balance of the related Receivable.

     SECTION 4.4 Advances. (a) As of each Determination Date, the Servicer
shall make a payment with respect to each Receivable (other than a Defaulted
Receivable) equal to the excess, if any, of (x) the product of the Principal
Balance of such Receivable as of the first day of the related Collection Period
and one-twelfth of the Annual Percentage Rate (as adjusted downward, as the
case may be, in accordance with the Servicemembers Civil Relief Act or pursuant
to Section 3.2) on such Receivable (calculated on the basis of a 360-day year
of twelve 30-day months), over (y) the interest actually received by the
Servicer with respect to such Receivable from the Obligor or from payment of
the Purchase Amount during or with respect to such Collection Period. The
Servicer shall deposit all such Advances into the Collection Account in
immediately available funds no later than, 11:00 a.m. New York City time, on
the Determination Date. Notwithstanding the foregoing, the Servicer may elect
not to make any Advance with respect to a Receivable to the extent that the
Servicer, in its sole discretion, shall determine that such Advance is not
recoverable from subsequent payments on such Receivable or from withdrawals
from the Reserve Account. To the extent that the amount set forth in clause (y)
above with respect to a Receivable is greater than the amount set forth in
clause (x) above with respect thereto, such excess amount shall be distributed
to the Servicer pursuant to Section 4.6(b). In addition, in the event that a
Receivable becomes a Defaulted Receivable, Outstanding Advances in respect of
that Receivable shall be reimbursed to the extent of interest Collections with
respect to such Receivable and, if such amounts are insufficient, from amounts
on deposit in the Reserve Account, and if such amounts are not sufficient, from
amounts on deposit in the Collection Account. The Servicer shall not make any
advance with respect to principal of Receivables.

     (b) The Servicer shall deposit in the Collection Account the aggregate
Advances on the Receivables pursuant to Section 4.4(a). To the extent that the
Servicer fails to make an Advance pursuant to Section 4.4(a) on the date
required, the Servicer shall so notify the Issuer and the Indenture Trustee in
writing specifying the amount of the Advance and the Receivable to which such
Advance related, and the Indenture Trustee shall withdraw such amount (or, if
determinable by the Servicer, such portion of such amount as does not represent
advances for delinquent interest) from the Reserve Account and deposit such
amount in the Collection Account.

                                      15
<PAGE>

     SECTION 4.5 Additional Deposits. (a) The Depositor and the Servicer shall
deposit in the Collection Account the aggregate Purchase Amounts with respect
to Purchased Receivables pursuant to Sections 2.3 and 3.7, respectively, and
the Servicer shall deposit therein all Purchase Amounts to be paid under
Section 8.1. All such deposits with respect to a Collection Period shall be
made, in immediately available funds, on the Business Day preceding the Payment
Date related to such Collection Period.

         (b) The Indenture Trustee, in accordance with the written instructions
of the Servicer, shall, on the Payment Date relating to each Collection Period,
make withdrawals from the Reserve Account (i) first, in an amount equal to the
Reserve Account Excess Amount and (ii) second, in an amount equal to the amount
(if positive) calculated by the Servicer pursuant to the second sentence of
Section 4.6(b).

     SECTION 4.6 Distributions. (a) On each Payment Date, the Indenture Trustee
shall cause the transfer and distribution of the amounts set forth in the
Servicer's Certificate for such Payment Date from the Collection Account to the
Servicer, in immediately available funds, for repayment of Outstanding Advances
pursuant to Section 4.4(a).

     (b) The Servicer shall on or before each Determination Date calculate the
Available Collections, the Reserve Account Excess Amount, the Available Funds,
the Servicing Fee and all unpaid Servicing Fees from prior Collection Periods,
if any, the Accrued Class A Note Interest, the Accrued Class B Certificate
Interest, the Priority Note Principal Payment, if any, and the Regular
Principal Distribution Amount. In addition, the Servicer shall calculate on or
before each Determination Date the difference, if any, between the Total
Required Payment and the Available Funds and, pursuant to Section 4.5(b), the
Indenture Trustee shall withdraw funds from the Reserve Account in an amount
equal to the lesser of such difference (if positive) or the balance of such
Reserve Account.

     (c) On each Payment Date, the Servicer shall instruct the Indenture
Trustee (based on the information contained in the Servicer's Certificate
delivered on or before the related Determination Date pursuant to Section 3.9),
to make the following withdrawals from the Collection Account and make
deposits, distributions and payments, to the extent of Available Funds for such
Payment Date (plus funds, if any, deposited in the Collection Account from the
Reserve Account pursuant to Section 4.5(b)), in the following order of
priority:

          (i) first, to the Servicer, the Servicing Fee and all unpaid
     Servicing Fees from prior Collection Periods;

          (ii) second, to the Noteholders, the Accrued Class A Note Interest
     for such Payment Date; provided that if there are not sufficient funds
     available to pay the entire amount of the Accrued Class A Note Interest,
     the amounts available shall be applied to the payment of such interest on
     the Class A Notes on a pro rata basis;

          (iii) third, to the Noteholders, the Priority Note Principal Payment,
     if any, for such Payment Date to be distributed in the same priority as
     described under Section 4.6(d) of this Agreement;

                                      16
<PAGE>

          (iv) fourth, to the Certificate Distribution Account, the Accrued
     Class B Certificate Interest for such Payment Date;

          (v) fifth, to the Principal Distribution Account, the Regular
     Principal Distribution Amount (less any amounts distributed under clause
     (iii) above) for such Payment Date;

          (vi) sixth, if such Payment Date is a Final Scheduled Payment Date
     for any Class, to the Principal Distribution Account, the amount necessary
     to reduce the remaining principal amount of such Class to zero after
     giving effect to the amount, if any, to be applied on such Payment Date to
     such Class from funds deposited pursuant to clause (v) above;

          (vii) seventh, to the Reserve Account, the amount, if any, required
     to reinstate the amount in the Reserve Account up to the Specified Reserve
     Balance for such Payment Date;

          (viii) eighth, to the Indenture Trustee and the Owner Trustee, all
     amounts due for fees, expenses and indemnification pursuant to Section 6.7
     of the Indenture and Section 7.1 of the Trust Agreement, respectively, and
     not previously paid; and

          (ix) ninth, to the Depositor, any remaining Available Funds for such
     Payment Date.

          Notwithstanding the foregoing in this Section 4.6(c),

               (A) if the Class A Notes have been accelerated after an Event of
          Default specified in Section 5.1(iii) of the Indenture, then the
          Available Funds shall instead be applied in the following order of
          priority:

                    (1)  to the Indenture Trustee and the Owner Trustee, all
                         amounts due for fees, expenses and indemnification
                         under Section 6.7 of the Indenture, Section 7.1 of the
                         Trust Agreement and Section 6.2 of this Agreement,
                         respectively, and not previously paid;

                    (2)  to the Servicer, the Servicing Fee and all unpaid
                         Servicing Fees from prior Collection Periods;

                    (3)  to the Noteholders, the Accrued Class A Note Interest
                         for such Payment Date; provided that if there are not
                         sufficient funds available to pay the entire amount of
                         the Accrued Class A Note Interest, the amounts
                         available shall be applied to the payment of such
                         interest on the Class A Notes on a pro rata basis;

                    (4)  to the Noteholders, the Priority Note Principal
                         Payment, if any, for such Payment Date to be
                         distributed in the same manner as described under
                         Section 4.6(d) of this Agreement;

                                      17
<PAGE>

                    (5)  to the Certificate Distribution Account, the Accrued
                         Class B Certificate Interest for such Payment Date;

                    (6)  first, to the holders of the Class A-1 Notes in
                         reduction of principal until the principal amount of
                         the Class A-1 Notes has been paid in full and then to
                         the holders of the Class A-2 Notes, the Class A-3
                         Notes and the Class A-4 Notes on a pro rata basis in
                         reduction of principal until the principal amount of
                         such Class A Notes has been paid in full;

                    (7)  to the Certificate Distribution Account, the
                         Certificate Balance of the Class B Certificates; and

                    (8)  to the Depositor, any remaining Available Funds for
                         such Payment Date; and

               (B) if the Class A Notes have been accelerated after an Event of
          Default specified in Section 5.1(i), (ii), (iv) or (v) of the
          Indenture, then the Available Funds shall instead be applied in the
          following order of priority:

                    (1)  to the Indenture Trustee and the Owner Trustee, all
                         amounts due for fees, expenses and indemnification
                         under Section 6.7 of the Indenture, Section 7.1 of the
                         Trust Agreement and Section 6.2 of this Agreement,
                         respectively, and not previously paid;

                    (2)  to the Servicer, the Servicing Fee and all unpaid
                         Servicing Fees from prior Collection Periods;

                    (3)  to the Noteholders, the Accrued Class A Note Interest
                         for such Payment Date; provided that if there are not
                         sufficient funds available to pay the entire amount of
                         the Accrued Class A Note Interest, the amounts
                         available shall be applied to the payment of such
                         interest on the Class A Notes on a pro rata basis;

                    (4)  first, to the holders of the Class A-1 Notes in
                         reduction of principal until the principal amount of
                         the Class A-1 Notes has been paid in full and then to
                         the holders of the Class A-2 Notes, the Class A-3
                         Notes and the Class A-4 Notes on a pro rata basis in
                         reduction of principal until the principal amount of
                         such Class A Notes has been paid in full;

                    (5)  to the Certificate Distribution Account, the sum of
                         (x) the Accrued Class B Certificate Interest for such
                         Payment Date and (y) the Certificate Balance of the
                         Class B Certificates; and

                    (6)  to the Depositor, any remaining Available Funds for
                         such Payment Date.

                                      18
<PAGE>

     (d) If the Notes have not been accelerated because of an Event of Default,
then on each Payment Date the Servicer shall instruct the Indenture Trustee
(based on the information contained in the Servicer's Certificate delivered on
or before the related Determination Date pursuant to Section 3.9), to withdraw
the funds deposited in the Principal Distribution Account on such Payment Date
and make distributions and payments in the following order of priority:

          (i)  first, to the holders of the Class A-1 Notes on a pro rata basis
               in reduction of principal until the principal amount of the
               Class A-1 Notes has been paid in full;

          (ii) second, to the holders of the Class A-2 Notes on a pro rata
               basis in reduction of principal until the principal amount of
               the Class A-2 Notes has been paid in full;

          (iii) third, to the holders of the Class A-3 Notes on a pro rata
               basis in reduction of principal until the principal amount of
               the Class A-3 Notes has been paid in full;

          (iv) fourth, to the holders of the Class A-4 Notes on a pro rata
               basis in reduction of principal until the principal amount of
               the Class A-4 Notes has been paid in full; and

          (v)  fifth, to the Certificate Distribution Account in reduction of
               the Certificate Balance of the Class B Certificates until the
               Certificate Balance of the Class B Certificates has been reduced
               to zero.

Any funds remaining on deposit in the Principal Distribution Account shall be
paid to the Indenture Trustee and the Owner Trustee to the extent, if any, of
amounts due to them hereunder that are unpaid and then to the Depositor.

          If the Notes have been accelerated because of an Event of Default,
then on each Payment Date the Servicer shall instruct the Indenture Trustee
(based on the information contained in the Servicer's Certificate delivered on
or before the related Determination Date pursuant to Section 3.9), to withdraw
the funds deposited in the Principal Distribution Account on such Payment Date
and pay them to the holders of the Class A-1 Notes until the principal amount
of the Class A-1 Notes has been paid in full and then to the holders of the
Class A-2 Notes, Class A-3 Notes and Class A-4 Notes on a pro rata basis in
reduction of principal until the principal amount of the Notes has been paid in
full.

     SECTION 4.7 Reserve Account. (a) (i) The Servicer shall, prior to the
Closing Date, cause to be established and maintained an Eligible Deposit
Account in the name "JPMorgan Chase Bank, as Indenture Trustee, as secured
party from USAA Auto Owner Trust 2004-1", initially at the corporate trust
department of the Indenture Trustee, which shall be designated as the "Reserve
Account" (the Reserve Account, together with the Collection Account (including
the Principal Distribution Account), the "Trust Accounts"). The Reserve Account
shall be under the sole dominion and control of the Indenture Trustee;
provided, that the Servicer may make deposits to the Reserve Account in
accordance with the Basic Documents. The Reserve Account

                                      19
<PAGE>

will be established and maintained pursuant to an account agreement which
specifies New York law as the governing law. In addition, the Reserve Account
shall be established and maintained at an institution which agrees in writing
that for so long as the Notes are Outstanding it will comply with entitlement
orders (as defined in Article 8 of the UCC) originated by the Indenture Trustee
without further consent of the Issuer. On the Closing Date, the Depositor shall
deposit the Reserve Initial Deposit into the Reserve Account. The Reserve
Account and all amounts, securities, investments, financial assets and other
property deposited in or credited to the Reserve Account (such amounts, the
"Reserve Account Property") shall be held by the Indenture Trustee as secured
party for the benefit of the Noteholders and, after payment in full of the
Notes, as agent of the Owner Trustee and as part of the Trust Property, and all
deposits to and withdrawals from there from shall be made only upon the terms
and conditions of the Basic Documents.

     The Reserve Account Property shall, to the extent permitted by applicable
law, rules and regulations, be invested, as directed in writing by the
Depositor, by the bank or trust company then maintaining the Reserve Account in
Permitted Investments that mature not later than the next Payment Date or such
later date that satisfies the Rating Agency Condition, and such Permitted
Investments shall be held to maturity. If JPMorgan Chase Bank is the Indenture
Trustee, in the absence of written direction, all funds shall be invested in
the JPMorgan Funds. All interest and other income (net of losses and investment
expenses) on funds on deposit in the Reserve Account shall be deposited
therein. The Indenture Trustee shall not be liable for investment losses in
Permitted Investments made in accordance with directions from the Depositor. In
the event the Reserve Account is no longer to be maintained at the corporate
trust department of the Indenture Trustee, the Servicer shall, with the
Indenture Trustee's or Owner Trustee's assistance as necessary, cause an
Eligible Deposit Account to be established as the Reserve Account within ten
(10) Business Days (or such longer period not to exceed thirty (30) calendar
days as to which each Rating Agency may consent) and give written notice of the
location and account number of such account to the Indenture Trustee.

               (ii) With respect to Reserve Account Property:

                    (A) any Reserve Account Property that is a "financial
               asset" as defined in Section 8-102(a)(9) of the UCC shall be
               physically delivered to, or credited to an account in the name
               of, the institution maintaining the Reserve Account in
               accordance with such institution's customary procedures such
               that such institution establishes a "securities entitlement" in
               favor of the Indenture Trustee with respect thereto; and

                    (B) any Reserve Account Property that is held in deposit
               accounts shall be held solely in the name of the Indenture
               Trustee at one or more depository institutions having the
               Required Rating and each such deposit account shall be subject
               to the exclusive custody and control of the Indenture Trustee
               and the Indenture Trustee shall have sole signature authority
               with respect thereto.

               (iii) Except for any deposit accounts specified in clause
          (ii)(B) above, the Reserve Account shall only be invested in
          securities or in other assets which the institution

                                      20
<PAGE>

          maintaining the Reserve Account agrees to treat as "financial assets"
          as defined in Section 8-102(a)(9) of the UCC.

     (b) If the Servicer pursuant to Section 4.4 determines on or before any
Determination Date that it is required to make an Advance and does not do so
from its own funds, the Servicer shall promptly instruct the Indenture Trustee
in writing to draw funds, in an amount specified by the Servicer, from the
Reserve Account and deposit them in the Collection Account to cover any
shortfall. Such payment shall be deemed to have been made by the Servicer
pursuant to Section 4.4 for purposes of making distributions pursuant to this
Agreement, but shall not otherwise satisfy the Servicer's obligation to deliver
the amount of the Advances to the Indenture Trustee, and the Servicer shall
within two (2) Business Days replace any funds in the Reserve Account so used.

     (c) Following the payment in full of the aggregate principal amount of the
Notes and the Certificate Balance and of all other amounts owing or to be
distributed hereunder or under the Indenture or the Trust Agreement to
Noteholders and Certificateholders, the Indenture Trustee and the Owner Trustee
and the termination of the Trust, any remaining Reserve Account Property shall
be distributed to the Depositor.

     (d) The Depositor shall be permitted to sell, transfer, convey or assign
in any manner its rights in the Reserve Account under Section 4.7(c), together
with its rights to receive amounts under Section 4.6(c) of this Agreement and
Sections 5.4(b)(v), 8.2(c) and 8.2(d) of the Indenture in accordance with the
priority of payments, provided that each of the following:

          (i) the Rating Agency Condition is satisfied with respect to such
     action;

          (ii) such action shall not, as evidenced by an Opinion of Counsel,
     cause the Issuer to be characterized as an association (or a publicly
     traded partnership) taxable as a corporation for federal income tax
     purposes; and

          (iii) the transferee or assignee agrees in writing to take positions
     for federal income tax purposes consistent with the federal income tax
     positions taken previously by the Depositor.

     SECTION 4.8 Net Deposits. For so long as (i) the Bank shall be the
Servicer and (ii) the Servicer shall be entitled pursuant to Section 4.2 to
remit collections on a monthly basis rather than within two (2) Business Days
of receipt, the Bank may make the remittances pursuant to Sections 4.2 and 4.5
above, net of amounts to be distributed to the Bank pursuant to Section 4.6(c).
Nonetheless, the Servicer shall account for all of the above described
remittances and distributions except for the Supplemental Servicing Fee in the
Servicer's Certificate as if the amounts were deposited and/or transferred
separately.

     SECTION 4.9 Statements to Noteholders and Certificateholders. On the
Business Day prior to each Payment Date, the Servicer shall provide to the
Indenture Trustee (with copies to the Rating Agencies and each Note Paying
Agent) for the Indenture Trustee to make available to each Noteholder of record
as of the most recent Record Date and to the Owner Trustee (with copies to the
Rating Agencies and to each Certificate Paying Agent) for the Owner Trustee to

                                      21
<PAGE>

forward to each Certificateholder of record as of the most recent Record Date a
statement based on information in the Servicer's Certificate furnished pursuant
to Section 3.9, setting forth for the Collection Period relating to such
Payment Date the following information as to the Notes and the Certificates to
the extent applicable:

          (i) the amount of such distribution allocable to principal allocable
     to the Notes and to the Certificates;

          (ii) the amount of such distribution allocable to interest allocable
     to the Notes and the Certificates;

          (iii) the amount of such distribution allocable to draws from the
     Reserve Account, if any;

          (iv) the Pool Balance as of the close of business on the last day of
     the preceding Collection Period;

          (v) the Specified Reserve Balance as of such Payment Date;

          (vi) the amount of the Servicing Fee paid to the Servicer with
     respect to the related Collection Period and the amount of any unpaid
     Servicing Fees and the change in such amount from that of the prior
     Payment Date;

          (vii) the amounts of the Class A Noteholders' Interest Carryover
     Shortfall and the Class B Certificateholders' Interest Carryover
     Shortfall, if any, on such Payment Date and the change in such amounts
     from the preceding Payment Date;

          (viii) the aggregate outstanding principal amount of each Class of
     Notes, the Note Pool Factor for each Class of Notes, the Certificate
     Balance and the Certificate Pool Factor as of such Payment Date;

          (ix) the amount of any previously due and unpaid payment of principal
     of the Notes or of the Certificate Balance, as applicable, and the change
     in such amount from that of the prior Payment Date;

          (x) the Note Pool Factor and the Certificate Pool Factor for such
     Payment Date;

          (xi) the balance of the Reserve Account on such Payment Date, after
     giving effect to distributions made on such Payment Date and the change in
     such balance from the preceding Payment Date;

          (xii) the amount of the aggregate Realized Losses, if any, with
     respect to the related Collection Period;

          (xiii) the aggregate Purchase Amount of Receivables repurchased by
     the Depositor or the Seller or purchased by the Servicer, if any, with
     respect to the related Collection Period;

                                      22
<PAGE>

          (xiv) the amount of Advances, if any, on such Payment Date;

          (xv) the aggregate Collections for the related Collection Period; and

          (xvi) the aggregate Principal Balance of the Receivables that became
     designated as Defaulted Receivables during the related Collection Period.

     In addition, such statements may be posted by the Indenture Trustee on its
website at www.jpmorgan.com/sfr.

     Each amount set forth on the Payment Date statement pursuant to clauses
(i), (ii), (vi), (vii) and (ix) above shall be expressed as a dollar amount per
$1,000 of original principal amount of a Note or original Certificate Balance
of a Certificate, as applicable.

                                   ARTICLE V

                                 THE DEPOSITOR

     SECTION 5.1 Representations, Warranties and Covenants of Depositor.

     (a) The Depositor makes the following representations and warranties on
which the Issuer is deemed to have relied in acquiring the Trust Property. The
representations and warranties speak as of the execution and delivery of this
Agreement and shall survive the conveyance of the Trust Property, by the
Depositor to the Issuer and the pledge thereof by the Issuer to the Indenture
Trustee pursuant to the Indenture:

     (i) Organization and Good Standing. The Depositor is a limited liability
company duly formed, validly existing and in good standing under the laws of
the State of Delaware, with all requisite power and authority to own its
properties and to conduct its business as such properties are currently owned
and such business is presently conducted, and had at all relevant times, and
has, power, authority, and legal right to acquire and own the Receivables.

     (ii) Power and Authority. The Depositor has all requisite power and
authority to execute and deliver this Agreement and the other Basic Documents
to which it is a party and to carry out their terms; the Depositor has full
power and authority to sell and assign the property to be sold, and assigned to
and deposited with the Issuer, and the Depositor shall have duly authorized
such sale and assignment to the Issuer by all necessary limited liability
company action; and the execution, delivery, and performance of this Agreement
and the other Basic Documents to which the Depositor is a party have been duly
authorized, executed and delivered by the Depositor by all necessary limited
liability company action.

     (iii) Binding Obligations. This Agreement, when duly executed and
delivered by the other parties hereto, constitutes a legal, valid, and binding
obligation of the Depositor enforceable against the Depositor in accordance
with its terms, except as the enforceability hereof may be limited by
bankruptcy, insolvency, reorganization, or other similar laws affecting
creditors' rights in general and by general principles of equity, regardless of
whether such enforceability is considered in a proceeding in equity or at law.

                                      23
<PAGE>

     (iv) No Violation. The consummation of the transactions contemplated by
this Agreement and the other Basic Documents to which the Depositor is a party
and the fulfillment of the terms hereof and thereof do not (i) conflict with,
result in any breach of any of the terms and provisions of, or constitute (with
or without notice or lapse of time) a default under, the limited liability
company agreement of the Depositor, or conflict with or breach any of the
material terms or provisions of, or constitute (with or without notice or lapse
of time) a default under, any indenture, agreement, or other instrument to
which the Depositor is a party or by which it is bound, (ii) result in the
creation or imposition of any lien upon any of its properties pursuant to the
terms of any such indenture, agreement, or other instrument, or (iii) violate
any law or, to the best of the Depositor's knowledge, any order, rule, or
regulation applicable to the Depositor of any court or of any federal or state
regulatory body, administrative agency, or other governmental instrumentality
having jurisdiction over the Depositor or its properties.

     (v) No Proceedings. There are no proceedings or investigations pending,
or, to the best of the Depositor's knowledge, threatened, before any court,
regulatory body, administrative agency, or other governmental instrumentality
having jurisdiction over the Depositor or its properties (i) asserting the
invalidity of this Agreement, any of the other Basic Documents or the
Securities, (ii) seeking to prevent the issuance of the Securities or the
consummation of any of the transactions contemplated by this Agreement or the
other Basic Documents, (iii) seeking any determination or ruling that might
materially and adversely affect the performance by the Depositor of its
obligations under, or the validity or enforceability of, this Agreement, any of
the other Basic Documents or the Securities or (iv) relating to the Depositor
and which might adversely affect the federal income tax attributes of the
Securities.

     (b) The Depositor covenants that it shall provide, or cause the Servicer
to provide, in a timely manner the certifications required by Section 302 of
the Sarbanes-Oxley Act of 2002.

     SECTION 5.2 Liability of Depositor; Indemnities. The Depositor shall be
liable in accordance herewith only to the extent of the obligations
specifically undertaken by the Depositor under this Agreement, and hereby
agrees to the following:

     (a) The Depositor shall indemnify, defend, and hold harmless the Issuer,
the Owner Trustee and the Indenture Trustee from and against any taxes that may
at any time be asserted against any such Person with respect to, and as of the
date of, the conveyance of the Receivables to the Issuer or the issuance and
original sale of the Notes and the Certificates, including any sales, gross
receipts, general corporation, tangible personal property, privilege, or
license taxes (but, in the case of the Issuer, not including any taxes asserted
with respect to ownership of the Receivables or federal or state income taxes
arising out of the transactions contemplated by this Agreement and the other
Basic Documents) and costs and expenses in defending against the same.

     (b) The Depositor shall indemnify, defend, and hold harmless the Issuer,
the Owner Trustee, the Indenture Trustee, the Noteholders and the
Certificateholders from and against any loss, liability or expense incurred by
reason of (i) the Depositor's willful misfeasance, bad faith, or negligence in
the performance of its duties under this Agreement, or by reason of reckless
disregard of its obligations and duties under this Agreement and (ii) the
Depositor's violation of

                                      24
<PAGE>

federal or State securities laws in connection with the registration or the
sale of the Notes or the Certificates.

     (c) Indemnification under this Section 5.2 shall survive the resignation
or removal of the Owner Trustee or the Indenture Trustee and the termination of
this Agreement and shall include, without limitation, reasonable fees and
expenses of counsel and expenses of litigation. If the Depositor shall have
made any indemnity payments pursuant to this Section 5.2 and the Person to or
on behalf of whom such payments are made thereafter shall collect any of such
amounts from others, such Person shall promptly repay such amounts to the
Depositor, without interest.

     SECTION 5.3 Merger or Consolidation of, or Assumption of the Obligations
of Depositor. Any Person (i) into which the Depositor may be merged or
consolidated, (ii) resulting from any merger, conversion, or consolidation to
which the Depositor shall be a party, or (iii) succeeding to the business of
the Depositor, which Person in any of the foregoing cases executes an agreement
of assumption to perform every obligation of the Depositor under this
Agreement, will be the successor to the Depositor under this Agreement without
the execution or filing of any document or any further act on the part of any
of the parties to this Agreement. The Depositor shall provide notice of any
merger, conversion, consolidation, or succession pursuant to this Section 5.3
to the Rating Agencies.

     SECTION 5.4 Limitation on Liability of Depositor and Others. The Depositor
and any officer or employee or agent of the Depositor may rely in good faith on
the advice of counsel or on any document of any kind, prima facie properly
executed and submitted by any Person respecting any matters arising hereunder.
The Depositor shall not be under any obligation to appear in, prosecute, or
defend any legal action that shall not be incidental to its obligations under
this Agreement, and that in its opinion may involve it in any expense or
liability.

     SECTION 5.5 Depositor May Own Notes or Certificates. The Depositor, and
any Affiliate of the Depositor, may in its individual or any other capacity
become the owner or pledgee of Notes or Certificates with the same rights as it
would have if it were not the Depositor or an Affiliate thereof, except as
otherwise expressly provided herein or in the other Basic Documents. Except as
set forth herein or in the other Basic Documents, Notes and Certificates so
owned by or pledged to the Depositor or any such Affiliate shall have an equal
and proportionate benefit under the provisions of this Agreement and the other
Basic Documents, without preference, priority, or distinction as among all of
the Notes and Certificates.

                                  ARTICLE VI

                                  THE SERVICER

     SECTION 6.1 Representations of Servicer. The Servicer makes the following
representations on which the Issuer is deemed to have relied in acquiring the
Trust Property. The representations speak as of the execution and delivery of
this Agreement and shall survive the conveyance of the Trust Property to the
Issuer and the pledge thereof by the Issuer pursuant to the Indenture:

                                      25
<PAGE>

     (a) Organization and Good Standing. The Servicer has been duly organized
and is validly existing as a federally chartered savings association or
corporation and is in good standing under the laws of the United States of
America or its state of incorporation, with power and authority to own its
properties and to conduct its business as such properties are currently owned
and such business is presently conducted, and had at all relevant times, and
has, power, authority, and legal right to acquire, own, sell, and service the
Receivables and to hold the Receivable Files as custodian on behalf of the
Indenture Trustee.

     (b) Power and Authority. The Servicer has the power and authority to
execute and deliver this Agreement and the other Basic Documents to which it is
a party and to carry out their terms; and the execution, delivery, and
performance of this Agreement and the other Basic Documents to which it is a
party shall have duly authorized, executed and delivered by the Servicer by all
necessary corporate action.

     (c) Binding Obligations. This Agreement constitutes a legal, valid, and
binding obligation of the Servicer enforceable in accordance with their terms
subject, as to enforcement, to applicable bankruptcy, insolvency,
reorganization, liquidation or other similar laws and equitable principles
relating to or affecting the enforcement of creditors' rights in general and by
general principles of equity regardless of whether such enforceability is
considered in a proceeding in equity or law.

     (d) No Violation. The consummation of the transactions contemplated by
this Agreement and the other Basic Documents to which the Servicer is a party
and the fulfillment of the terms hereof do not conflict with, result in any
breach of any of the terms and provisions of, nor constitute (i) (with or
without notice or lapse of time) a default under, the articles of association
or bylaws of the Servicer, or conflict with or breach any of the material terms
or provisions of, or constitute (with or without notice or lapse of time) a
default under, any indenture, agreement, or other instrument to which the
Servicer is a party or by which it shall be bound, (ii) result in the creation
or imposition of any lien upon any of its properties pursuant to the terms of
any such indenture, agreement, or other instrument or (iii) violate any law or,
to the best of the Servicer's knowledge, any order, rule, or regulation
applicable to the Servicer of any court or of any federal or state regulatory
body, administrative agency, or other governmental instrumentality having
jurisdiction over the Servicer or its properties.

     (e) No Proceedings. There are no proceedings or investigations pending, or
to the best of the Servicer's knowledge, threatened, before any court,
regulatory body, administrative agency, or other governmental instrumentality
having jurisdiction over the Servicer or its properties (i) asserting the
invalidity of this Agreement, any of the other Basic Documents or the
Securities, (ii) seeking to prevent the issuance of the Securities or the
consummation of any of the transactions contemplated by this Agreement and the
other Basic Documents, (iii) seeking any determination or ruling that might
materially and adversely affect the performance by the Servicer of its
obligations under, or the validity or enforceability of, this Agreement, any of
the other Basic Documents or the Securities, or (iv) relating to the Servicer
and which might adversely affect the federal income tax attributes of the
Securities.

                                      26
<PAGE>

     (f) Fidelity Bond. The Servicer maintains a fidelity bond in such form and
amount as is customary for banks acting as custodian of funds and documents in
respect of retail automotive installment sales contracts.

     SECTION 6.2 Indemnities of Servicer. The Servicer shall be liable in
accordance herewith only to the extent of the obligations specifically
undertaken by the Servicer under this Agreement, and hereby agrees to the
following:

     (a) The Servicer shall defend, indemnify and hold harmless the Issuer, the
Owner Trustee, the Indenture Trustee, the Noteholders, the Certificateholders
and the Depositor from and against any and all costs, expenses, losses,
damages, claims and liabilities, arising out of or resulting from the use,
ownership or operation by the Servicer or any Affiliate thereof of a Financed
Vehicle.

     (b) The Servicer shall indemnify, defend and hold harmless the Issuer, the
Owner Trustee, the Depositor and the Indenture Trustee from and against any
taxes that may at any time be asserted against any such Person with respect to
the transactions contemplated herein or in the other Basic Documents, if any,
including, without limitation, any sales, gross receipts, general corporation,
tangible personal property, privilege, or license taxes (but, in the case of
the Issuer, not including any taxes asserted with respect to, and as of the
date of, the conveyance of the Receivables to the Issuer or the issuance and
original sale of the Notes and the Certificates, or asserted with respect to
ownership of the Receivables, or federal or state income taxes arising out of
the transactions contemplated by this Agreement and the other Basic Documents)
and costs and expenses in defending against the same.

     (c) The Servicer shall indemnify, defend and hold harmless the Issuer, the
Owner Trustee, the Indenture Trustee, the Noteholders, the Certificateholders
and the Depositor from and against any and all costs, expenses, losses, claims,
damages, and liabilities to the extent that such cost, expense, loss, claim,
damage, or liability arose out of, or was imposed upon any such Person through,
the negligence, willful misfeasance, or bad faith of the Servicer in the
performance of its duties under this Agreement or any other Basic Document to
which it is a party, or by reason of reckless disregard of its obligations and
duties under this Agreement or any other Basic Document to which it is a party.

     (d) The Servicer shall indemnify, defend, and hold harmless the Owner
Trustee and the Indenture Trustee, as applicable, from and against all costs,
expenses, losses, claims, damages, and liabilities arising out of or incurred
in connection with the acceptance or performance of the trusts and duties
contained herein and in the other Basic Documents, if any, except to the extent
that such cost, expense, loss, claim, damage, or liability: (i) shall be due to
the willful misfeasance, bad faith, or negligence (except for errors in
judgment) of the Owner Trustee or the Indenture Trustee, as applicable; (ii) in
the case of the Owner Trustee, shall arise from the Owner Trustee's breach of
any of its representations or warranties set forth in Section 6.9 of the Trust
Agreement or, in the case of the Indenture Trustee, from the Indenture
Trustee's breach of any of its representations or warranties set forth in the
Indenture; or (iii) in the case of the Indenture Trustee, shall arise out of or
be incurred in connection with the performance by the Indenture Trustee of the
duties of a Successor Servicer hereunder.

                                      27
<PAGE>

     (e) Indemnification under this Section 6.2 by the Bank (or any successor
thereto pursuant to Section 7.2) as Servicer, with respect to the period such
Person was the Servicer, shall survive the termination of such Person as
Servicer or a resignation by such Person as Servicer as well as the termination
of this Agreement or the resignation or removal of the Owner Trustee or the
Indenture Trustee and shall include reasonable fees and expenses of counsel and
expenses of litigation. If the Servicer shall have made any indemnity payments
pursuant to this Section 6.2 and the Person to or on behalf of whom such
payments are made thereafter shall collect any of such amounts from others,
such Person shall promptly repay such amounts to the Servicer, without
interest.

     SECTION 6.3 Merger or Consolidation of, or Assumption of the Obligations
of Servicer. Any Person (i) into which the Servicer may be merged or
consolidated, (ii) resulting from any merger, conversion, or consolidation to
which the Servicer shall be a party, (iii) succeeding to the business of the
Servicer or (iv) 50% or more of the equity of which is owned, directly or
indirectly, by the United Services Automobile Association, which Person in any
of the foregoing cases executes an agreement of assumption to perform every
obligation of the Servicer under this Agreement, will be the successor to the
Servicer under this Agreement without the execution or filing of any paper or
any further act on the part of any of the parties to this Agreement. The
Servicer shall provide notice of any merger, conversion, consolidation or
succession pursuant to this Section 6.3 to the Rating Agencies and the
Indenture Trustee.

     SECTION 6.4 Limitation on Liability of Servicer and Others. (a) Neither
the Servicer nor any of the directors or officers or employees or agents of the
Servicer shall be under any liability to the Issuer, the Noteholders or the
Certificateholders, except as provided under this Agreement, for any action
taken or for refraining from the taking of any action pursuant to this
Agreement or for errors in judgment; provided, however, that this provision
shall not protect the Servicer or any such Person against any liability that
would otherwise be imposed by reason of willful misfeasance or bad faith in the
performance of duties or by reason of reckless disregard of obligations and
duties under this Agreement, or by reason of negligence in the performance of
its duties under this Agreement. The Servicer and any director, officer or
employee or agent of the Servicer may rely in good faith on any Opinion of
Counsel or on any Officer's Certificate of the Depositor or certificate of
auditors believed to be genuine and to have been signed by the proper party in
respect of any matters arising under this Agreement.

     (b) Except as provided in this Agreement, the Servicer shall not be under
any obligation to appear in, prosecute, or defend any legal action that shall
not be incidental to its duties to service the Receivables in accordance with
this Agreement, and that in its opinion may involve it in any expense or
liability; provided, however, that the Servicer may undertake any reasonable
action that it may deem necessary or desirable in respect of this Agreement and
the rights and duties of the parties to this Agreement and the interests of the
Noteholders and Certificateholders under this Agreement. In such event, the
legal expenses and costs of such action and any liability resulting therefrom
shall be expenses, costs and liabilities of the Issuer, and the Servicer shall
be entitled to be reimbursed therefor. Any amounts due the Servicer pursuant to
this subsection shall be payable on a Payment Date from the Available
Collections on deposit in the Collection Account only after all payments
required to be made on such date to the Noteholders, the Certificateholders and
the Servicer have been made, and deposits of any

                                      28
<PAGE>

amount required to be deposited into the Reserve Account pursuant to Section
4.6(c)(vi) to maintain the amount on deposit therein (exclusive of investment
income and earnings on amounts on deposit therein) at the Specified Reserve
Balance on such date have been made.

     (c) The Servicer and any director or officer or employee or agent of the
Servicer shall be indemnified by the Trust and held harmless against any loss,
liability, or expense including reasonable attorneys' fees and expenses
incurred in connection with any legal action relating to the performance of the
Servicer's duties under this Agreement, other than (i) any loss or liability
otherwise reimbursable pursuant to this Agreement; (ii) any loss, liability, or
expense incurred solely by reason of the Servicer's willful misfeasance,
negligence, or bad faith in the performance of its duties hereunder or by
reason of reckless disregard of its obligations and duties under this
Agreement; and (iii) any loss, liability, or expense for which the Issuer is to
be indemnified by the Servicer under this Agreement. Any amounts due the
Servicer pursuant to this subsection shall be payable on a Payment Date from
the Available Collections on deposit in the Collection Account only after all
payments required to be made on such date to the Noteholders, the
Certificateholders and the Servicer have been made, and deposits of any amount
required to be deposited into the Reserve Account pursuant to Section
4.6(c)(vi) to maintain the amount on deposit therein (exclusive of investment
income and earnings on amounts on deposit therein) at the Specified Reserve
Balance on such date have been made.

     SECTION 6.5 Delegation of Duties. The Servicer may at any time perform
specific duties as servicer under this Agreement through sub-contractors;
provided that no such delegation or subcontracting shall relieve the Servicer
of its responsibilities with respect to such duties as to which the Servicer
shall remain primarily responsible and the Servicer shall be solely responsible
for the fees of any such sub-contractors.

     SECTION 6.6 Servicer Not to Resign as Servicer. Subject to the provisions
of Section 6.3, the Servicer shall not resign from its obligations and duties
under this Agreement except upon determination that the performance of its
duties under this Agreement shall no longer be permissible under applicable
law. Notice of any such determination permitting the resignation of the
Servicer shall be communicated to the Owner Trustee and the Indenture Trustee
at the earliest practicable time (and, if such communication is not in writing,
shall be confirmed in writing at the earliest practicable time) and any such
determination shall be evidenced by an Opinion of Counsel to such effect
delivered to the Owner Trustee and the Indenture Trustee concurrently with or
promptly after such notice. No such resignation shall become effective until
the Indenture Trustee or a Successor Servicer shall have (i) taken the actions
required by Section 7.1(b) and (ii) assumed the responsibilities and
obligations of the Servicer in accordance with Section 7.2.

     SECTION 6.7 Servicer May Own Notes or Certificates. The Servicer, and any
Affiliate of the Servicer, may, in its individual or any other capacity, become
the owner or pledgee of Notes or Certificates with the same rights as it would
have if it were not the Servicer or an Affiliate thereof, except as otherwise
expressly provided herein or in the other Basic Documents. Except as set forth
herein or in the other Basic Documents, Notes and Certificates so owned by or
pledged to the Servicer or such Affiliate shall have an equal and proportionate
benefit under

                                      29
<PAGE>

the provisions of this Agreement, without preference, priority or distinction
as among all of the Notes and Certificates.

                                  ARTICLE VII

                             SERVICING TERMINATION

     SECTION 7.1 Events of Servicing Termination. (a) If any one of the
following events ("Events of Servicing Termination") occur and be continuing:

          (i) Any failure by the Servicer (or, so long as the Seller is the
     Servicer, the Seller) to deliver to the Owner Trustee or the Indenture
     Trustee any proceeds or payment required to be so delivered under the
     terms of the Notes and the Certificates and this Agreement that shall
     continue unremedied for a period of five (5) Business Days after written
     notice of such failure is received by the Servicer or the Seller, as the
     case may be, from the Owner Trustee or the Indenture Trustee or after
     discovery of such failure by an officer of the Servicer or the Seller, as
     the case may be; or

          (ii) Failure on the part of the Servicer (or, so long as the Seller
     is the Servicer, the Seller) duly to observe or to perform in any material
     respect any other covenants or agreements, as the case may be, set forth
     in the Notes, the Certificates or in this Agreement, which failure shall
     (A) materially and adversely affect the rights of Noteholders or
     Certificateholders and (B) continue unremedied for a period of ninety (90)
     days after the date on which written notice of such failure, requiring the
     same to be remedied, shall have been given (1) to the Servicer or the
     Seller, as the case may be, by the Owner Trustee or the Indenture Trustee,
     or (2) to the Owner Trustee, the Indenture Trustee, the Seller and the
     Servicer by the Noteholders of Notes evidencing not less than 25% of the
     principal amount of the Notes or, if no Notes are outstanding, by
     Certificateholders of Certificates evidencing not less than 25% of the
     Certificate Balance; or

          (iii) So long as the Bank or another depository institution is not
     the Servicer, the entry of a decree or order by a court or agency or
     supervisory authority having jurisdiction in the premises for the
     appointment of a conservator, receiver, or liquidator for the Servicer in
     any insolvency, readjustment of debt, marshalling of assets and
     liabilities, or similar proceedings, or for the winding up or liquidation
     of its respective affairs, and the continuance of any such decree or order
     unstayed and in effect for a period of sixty (60) consecutive days; or

          (iv) So long as the Bank or another depository institution is not the
     Servicer, the consent by the Servicer to the appointment of a conservator
     or receiver or liquidator in any insolvency, readjustment of debt,
     marshalling of assets and liabilities, or similar proceedings of or
     relating to the Servicer of or relating to substantially all of its
     property; or the Servicer shall admit in writing its inability to pay its
     debts generally as they become due, file a petition to take advantage of
     any applicable insolvency or reorganization statute, make an assignment
     for the benefit of its creditors, or voluntary suspend payment of its
     obligations or become insolvent;

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<PAGE>

then the Indenture Trustee shall promptly notify each Rating Agency, and in
each and every case, so long as an Event of Servicing Termination shall not
have been remedied, either the Indenture Trustee or the holders of Notes
evidencing not less than a majority of the principal amount of the Notes
Outstanding (or, if no Notes are Outstanding, Certificates evidencing not less
than a majority of the Certificate Balance), by notice then given in writing to
the Servicer (and to the Indenture Trustee and the Owner Trustee if given by
the Noteholders and to the Owner Trustee if given by the Certificateholders)
(with a copy to the Rating Agencies) may terminate all of the rights and
obligations of the Servicer under this Agreement. On or after the receipt by
the Servicer of such written notice, all authority and power of the Servicer
under this Agreement, whether with respect to the Notes, the Certificates or
the Trust Property or otherwise, shall pass to and be vested in the Indenture
Trustee or such Successor Servicer as may be appointed under Section 7.2; and,
without limitation, the Indenture Trustee and the Owner Trustee are hereby
authorized and empowered to execute and deliver, on behalf of the predecessor
Servicer, as attorney-in-fact or otherwise, any and all documents and other
instruments, and to do or accomplish all other acts or things necessary or
appropriate to effect the purposes of such notice of termination, whether to
complete the transfer and endorsement of the Receivables and related documents,
or otherwise.

     (b) Upon termination of the Servicer under Section 7.1(a), the predecessor
Servicer shall cooperate with the Indenture Trustee, the Owner Trustee and such
Successor Servicer in effecting the termination of the responsibilities and
rights of the predecessor Servicer under this Agreement, including the transfer
to the Indenture Trustee or such Successor Servicer for administration of all
cash amounts that shall at the time be held by the predecessor Servicer for
deposit, or shall thereafter be received with respect to a Receivable and the
delivery of the Receivable Files and the related accounts and records
maintained by the Servicer. All reasonable costs and expenses (including
attorneys' fees) incurred in connection with transferring the Receivable Files
to the Successor Servicer and amending this Agreement to reflect such
succession as Servicer pursuant to this Section 7.1 shall be paid by the
predecessor Servicer upon presentation of reasonable documentation of such
costs and expenses.

     SECTION 7.2 Appointment of Successor Servicer. (a) Upon the Servicer's
receipt of notice of termination pursuant to Section 7.1 or the Servicer's
resignation in accordance with the terms of this Agreement, the predecessor
Servicer shall continue to perform its functions as Servicer under this
Agreement, in the case of termination, only until the date specified in such
termination notice or, if no such date is specified in a notice of termination,
until receipt of such notice and, in the case of resignation, until the later
of (x) the date 90 days from the delivery to the Indenture Trustee and the
Owner Trustee of written notice of such resignation (or written confirmation of
such notice) in accordance with the terms of this Agreement and (y) the date
upon which the predecessor Servicer shall become unable to act as Servicer, as
specified in the notice of resignation and accompanying Opinion of Counsel. In
the event of the Servicer's resignation or termination hereunder, the Issuer
shall appoint a Successor Servicer, and the Successor Servicer shall accept its
appointment by a written assumption in form acceptable to the Owner Trustee and
the Indenture Trustee (with a copy to each Rating Agency). In the event that a
Successor Servicer has not been appointed at the time when the predecessor
Servicer has ceased to act as Servicer in accordance with this Section 7.2, the
Indenture Trustee without further action shall automatically be appointed the
Successor Servicer and the Indenture Trustee

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<PAGE>

shall be entitled to the Servicing Fee. The Indenture Trustee may resign as the
Servicer by giving written notice of such resignation to the Issuer and in such
event shall be released from such duties and obligations, such release not to
be effective until the date a Successor Servicer enters into a written
assumption as provided in this Section. Upon delivery of any such notice to the
Issuer, the Issuer shall obtain a new servicer as the Successor Servicer in
accordance with this Section. Notwithstanding the above, if the Indenture
Trustee shall be legally unable so to act or if, within 30 days after the
delivery of its notice of resignation, the Issuer shall not have obtained a
Successor Servicer, the Indenture Trustee shall appoint, or petition a court of
competent jurisdiction to appoint, any established institution, having a net
worth of not less than $100,000,000 and whose regular business shall include
the servicing of automotive receivables, as the successor to the Servicer under
this Agreement; provided that the Rating Agency Condition shall be satisfied in
connection with such appointment.

     (b) Upon appointment, the Successor Servicer shall be the successor in all
respects to the predecessor Servicer and shall be subject to all the
responsibilities, duties, and liabilities arising thereafter relating thereto
placed on the predecessor Servicer, by the terms and provisions of this
Agreement.

     (c) In connection with such appointment, subject to Section 3.7(e) of the
Indenture, the Indenture Trustee may make such arrangements for the
compensation of such Successor Servicer out of payments on Receivables as it
and such Successor Servicer shall agree; provided, however, that no such
compensation shall be in excess of that permitted the predecessor Servicer
under this Agreement. The Indenture Trustee and such Successor Servicer shall
take such action, consistent with this Agreement, as shall be necessary to
effectuate any such succession.

     SECTION 7.3 Repayment of Advances. If the identity of the Servicer shall
change, the predecessor Servicer shall be entitled to receive to the extent of
available funds reimbursement for Outstanding Advances pursuant to Section 4.3
and 4.4, in the manner specified in Section 4.6, with respect to all Advances
made by the predecessor Servicer.

     SECTION 7.4 Notification to Noteholders and Certificateholders. Upon any
termination of, or appointment of a successor to, the Servicer pursuant to this
Article VII, the Indenture Trustee shall give prompt written notice thereof to
Noteholders, and the Owner Trustee shall give prompt written notice thereof to
Certificateholders at their respective addresses of record and to each Rating
Agency.

     SECTION 7.5 Waiver of Past Events of Servicing Termination. The holders of
Notes evidencing not less than a majority of the principal amount of the Notes
(or, if no Notes are Outstanding, holders of Certificates evidencing not less
than a majority of the Certificate Balance) may, on behalf of all Noteholders
and Certificateholders, waive any Event of Servicing Termination hereunder and
its consequences, except an event resulting from the failure to make any
required deposits to or payments from any of the Trust Accounts or the
Certificate Distribution Account in accordance with this Agreement, which shall
require the unanimous vote of all Holders of Outstanding Securities. Upon any
such waiver of a past Event of Servicing Termination, such Event of Servicing
Termination shall cease to exist, and shall be deemed to have been remedied for
every purpose of this Agreement. No such waiver shall extend to any

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<PAGE>

subsequent or other event or impair any right consequent thereon. The Issuer
shall provide written notice of any such waiver to the Rating Agencies.

                                 ARTICLE VIII

                                  TERMINATION

     SECTION 8.1 Optional Purchase of All Receivables. As of the last day of
any Collection Period as of which the Pool Factor shall be equal to or less
than the Optional Purchase Percentage, the Servicer shall have the option to
purchase the Trust Property from the Trust. To exercise such option, the
Servicer shall deposit pursuant to Section 4.5 in the Collection Account an
amount equal to the lesser of (i) the aggregate Purchase Amount for the
Receivables and (ii) the fair market value of the Receivables, and shall
succeed to all interests in and to the Trust. Notwithstanding the foregoing,
the Servicer shall not be permitted to exercise such option unless the amount
to be deposited in the Collection Account pursuant to the preceding sentence is
greater than or equal to the sum of the outstanding principal amount of the
Notes and the Certificate Balance and all accrued but unpaid interest
(including any over due interest) thereon. The amount deposited in the
Collection Account pursuant to this Section 8.1 shall be used on the next
Payment Date to make payments in full to Noteholders and Certificateholders in
the manner set forth in Article IV. The purchase of the Trust Property pursuant
to this Section shall not be permitted unless either (i) the Servicer's
long-term unsecured debt is rated at the time of such purchase at least Baa3 by
Moody's or (ii) the Servicer provides to the Indenture Trustee and the Owner
Trustee an Opinion of Counsel in form reasonably satisfactory to the Indenture
Trustee and the Owner Trustee and in form and substance satisfactory to Moody's
to the effect that such purchase will not constitute a fraudulent transfer of
assets of the Servicer under applicable state and federal law; provided that
this sentence may be deleted or modified with the consent of Moody's and
without the consent of any Securityholder, the Indenture Trustee or the Owner
Trustee.

     SECTION 8.2 Succession Upon Satisfaction and Discharge of Indenture.
Following the satisfaction and discharge of the Indenture and the payment in
full of the principal of and interest on the Notes, to the extent permitted by
applicable law and until the payment of all amounts owing or to be distributed
hereunder to the Certificateholders, the Indenture Trustee will continue to
carry out its obligations hereunder as agent for the Owner Trustee, including
without limitation making distributions from the Collection Account in
accordance with Section 4.6 and making withdrawals from the Reserve Account in
accordance with Section 4.5(b) and Section 4.7.

                                  ARTICLE IX

                            MISCELLANEOUS PROVISIONS

     SECTION 9.1 Amendment. (a) This Agreement may be amended by the Depositor,
the Servicer and the Issuer, with the consent of the Indenture Trustee and the
Owner Trustee to the extent that their respective rights or obligations may be
affected thereby (which consent may not be unreasonably withheld), but without
the consent of any of the Noteholders or the

                                      33
<PAGE>

Certificateholders, to cure any ambiguity, to correct or supplement any
provisions in this Agreement, or to add any provisions to or change or
eliminate any provisions or to modify the rights of the Noteholders or
Certificateholders; provided, however, that (i) such action shall not, as
evidenced by either an Opinion of Counsel or an Officer's Certificate delivered
to the Owner Trustee and the Indenture Trustee, materially and adversely affect
the interests of any Noteholder or Certificateholder and (ii) the Rating Agency
Condition shall be satisfied.

     (b) This Agreement may also be amended from time to time by the Depositor,
the Servicer and the Issuer, with the consent of the Indenture Trustee and the
Owner Trustee to the extent that their respective rights or obligations may be
affected thereby (which consent may not be unreasonably withheld) and with the
consent of (i) the Noteholders of Notes evidencing not less than a majority of
the principal amount of each Class of Notes and (ii) the Certificateholders of
Certificates evidencing not less than a majority of the Certificate Balance
(which consent of any holder of a Note or holder of a Certificate given
pursuant to this Section 9.1 or pursuant to any other provision of this
Agreement shall be conclusive and binding on such Note or Certificate, as the
case may be, and on all future holders of such Note or holders of such
Certificate, as the case may be, and of any Note or Certificate, as applicable,
issued upon the transfer thereof or in exchange thereof or in lieu thereof
whether or not notation of such consent is made upon such Note or the
Certificate), for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Agreement, or of modifying
in any manner the rights of the Noteholders or the Certificateholders;
provided, however, that no such amendment shall (A) increase or reduce in any
manner the amount of, or accelerate or delay the timing of, or change the
allocation or priority of, collections of payments on Receivables or
distributions that shall be required to be made on any Note or Certificate or
change any Note Interest Rate or any Certificate Rate or the amount required to
be on deposit in the Reserve Account, without the consent of all Noteholders or
Certificateholders or (B) reduce the aforesaid percentage required to consent
to any such amendment, without the consent of the holders of all Notes and
holders of all Certificates. Notwithstanding the foregoing, the Depositor may
decrease the Specified Reserve Balance upon satisfaction of the Rating Agency
Condition without the consent of any other party hereto or any Noteholder or
Certificateholder.

     (c) Prior to the execution of any such amendment the Servicer will provide
written notification of the substance of such amendment to each Rating Agency.

     (d) Promptly after the execution of any such amendment, the Servicer shall
furnish written notification of the substance of such amendment to each
Certificateholder, the Indenture Trustee and each Rating Agency and the
Indenture Trustee will provide notification of the substance of such amendment
to each Noteholder. It shall not be necessary for the consent of Noteholders or
the Certificateholders pursuant to this Section 9.1 to approve the particular
form of any proposed amendment or consent, but it shall be sufficient if such
consent shall approve the substance thereof. The manner of obtaining such
consents (and any other consents of Noteholders and Certificateholders provided
for in this Agreement) and of evidencing the authorization of the execution
thereof by Noteholders and Certificateholders shall be subject to such
reasonable requirements as the Owner Trustee and the Indenture Trustee may
prescribe, including the establishment of record dates pursuant to the Note
Depository Agreement.

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<PAGE>

     (e) Prior to the execution of any amendment to this Agreement, the Owner
Trustee and the Indenture Trustee shall be entitled to receive and rely upon an
Opinion of Counsel stating that the execution of such amendment is authorized
or permitted by this Agreement and the Opinion of Counsel referred to in
Section 9.2(i)(1). The Owner Trustee or the Indenture Trustee may, but shall
not be obligated to, enter into any such amendment which affects such Owner
Trustee's or Indenture Trustee's own rights, duties or immunities under this
Agreement or otherwise.

     SECTION 9.2 Protection of Title to Trust Property. (a) The Depositor and
the Seller shall file such financing statements and cause to be filed such
continuation statements, all in such manner and in such places as may be
required by law fully to preserve, maintain, and protect the interest of the
Issuer and the Indenture Trustee for the benefit of the Noteholders in the
Receivables and in the proceeds thereof. The Depositor or the Seller, as
applicable, shall deliver (or cause to be delivered) to the Owner Trustee and
the Indenture Trustee file-stamped copies of, or filing receipts for, any
document filed as provided above, as soon as available following such filing.

     (b) None of the Depositor, the Seller or the Servicer shall change its
name, identity, or corporate structure in any manner that would, could, or
might make any financing statement or continuation statement filed by the
Seller or the Depositor in accordance with paragraph (a) above seriously
misleading within the meaning of ss. 9-506 of the UCC, unless it shall have
given the Owner Trustee and the Indenture Trustee at least 10 days' prior
written notice thereof, with a copy to the Rating Agencies, and shall have
promptly filed appropriate amendments to all previously filed financing
statements or continuation statements.

     (c) The Depositor, the Seller and the Servicer shall give the Owner
Trustee and the Indenture Trustee at least ten (10) days' prior written notice
of any relocation of its principal executive office or change in the
jurisdiction under whose laws it is formed if, as a result of such relocation
or change, the applicable provisions of the UCC would require the filing of any
amendment of any previously filed financing or continuation statement or of any
new financing statement and shall promptly file any such amendment or new
financing statement. The Servicer shall at all times maintain each office from
which it shall service Receivables, and its principal executive office, within
the United States of America.

     (d) The Servicer shall maintain accounts and records as to each Receivable
accurately and in sufficient detail to permit (i) the reader thereof to know at
any time the status of such Receivable, including payments and recoveries made
and payments owing (and the nature of each) and (ii) reconciliation between
payments or recoveries on (or with respect to) each Receivable and the amounts
from time to time deposited in the Collection Account and the Reserve Account
in respect of such Receivable.

     (e) The Servicer shall maintain its computer systems so that, from and
after the time of conveyance under this Agreement of the Receivables to the
Issuer, the Servicer's master computer records (including any back-up archives)
that refer to a Receivable shall indicate clearly, by numerical code or
otherwise, that such Receivable is owned by the Issuer and has been pledged to
the Indenture Trustee pursuant to the Indenture. Indication of the Issuer's and

                                      35
<PAGE>

the Indenture Trustee's interest in a Receivable shall not be deleted from or
modified on the Servicer's computer systems until, and only until, the
Receivable shall have been paid in full or repurchased.

     (f) If at any time the Seller or the Servicer shall propose to sell, grant
a security interest in, or otherwise transfer any interest in automotive
receivables to any prospective purchaser, lender, or other transferee, the
Servicer shall give to such prospective purchaser, lender, or other transferee
computer tapes, records, or print-outs (including any restored from back-up
archives) that, if they shall refer in any manner whatsoever to any Receivable,
shall indicate clearly that such Receivable has been conveyed to and is owned
by the Issuer and has been pledged to the Indenture Trustee.

     (g) The Servicer, upon receipt of reasonable prior notice, shall permit
the Owner Trustee, the Indenture Trustee and their respective agents at any
time during normal business hours to inspect, audit, and make copies of and to
obtain abstracts from the Servicer's records regarding any Receivable.

     (h) Upon request, the Servicer shall furnish to the Owner Trustee and the
Indenture Trustee, within five (5) Business Days, a list of all Receivables (by
contract number and name of Obligor) then owned by the Issuer, together with a
reconciliation of such list to the Schedule of Receivables and to each of the
Servicer's Certificates furnished before such request indicating removal of
Receivables from the Trust.

          (i) The Servicer shall deliver to the Owner Trustee and the Indenture
     Trustee:

               (1) promptly after the execution and delivery of this Agreement
          and of each amendment thereto, an Opinion of Counsel either (A)
          stating that, in the opinion of such Counsel and subject to customary
          qualifications and assumptions, all financing statements and
          continuation statements have been filed that are necessary fully to
          preserve and protect the interest of the Issuer and the Indenture
          Trustee in the Receivables, and reciting the details of such filings
          or referring to prior Opinions of Counsel in which such details are
          given, or (B) stating that, in the opinion of such Counsel, no such
          action shall be necessary to preserve and protect such interest; and

               (2) within 120 days after the beginning of each calendar year
          beginning with the first calendar year beginning more than three
          months after the Cut-off Date, an Opinion of Counsel, dated as of a
          date during such 120-day period, either (A) stating that, in the
          opinion of such counsel and subject to customary qualifications and
          assumptions, all financing statements and continuation statements
          have been filed that are necessary fully to preserve and protect the
          interest of the Issuer and the Indenture Trustee in the Receivables,
          and reciting the details of such filings or referring to prior
          Opinions of Counsel in which such details are given, or (B) stating
          that, in the opinion of such Counsel, no such action shall be
          necessary to preserve and protect such interest.

     Each Opinion of Counsel referred to in clause (i)(1) or (i)(2) above shall
specify any action necessary (as of the date of such opinion) to be taken in
the following year to preserve and protect such interest.

                                      36
<PAGE>

          (j) For the purpose of facilitating the execution of this Agreement
     and for other purposes, this Agreement may be executed in any number of
     counterparts, each of which counterparts shall be deemed to be an
     original, and all of which counterparts shall constitute but one and the
     same instrument.

     SECTION 9.3 GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO ITS CONFLICTS OF
LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND
THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     SECTION 9.4 Notices. All demands, notices, and communications under this
Agreement shall be in writing, personally delivered, sent by telecopier, over
night courier or mailed by certified mail, return receipt requested, and shall
be deemed to have been duly given upon receipt (a) in the case of the Seller or
the Servicer, at 10750 McDermott Freeway, San Antonio, Texas 78288, Attention:
Mike Broker, Vice President, or at such other address as shall be designated by
the Seller or the Servicer in a written notice to the Owner Trustee and the
Indenture Trustee, (b) in the case of the Depositor, at 9830 Colonnade Blvd.,
Suite 600, San Antonio, Texas 78230, Attention: Vice President, Legal Counsel,
(c) in the case of the Owner Trustee, at the Corporate Trust Office of the
Owner Trustee, Attention: Rita M. Ritrovato, (d) in the case of the Indenture
Trustee, at the Corporate Trust Office of the Indenture Trustee, (e) in the
case of Moody's Investors Service, Inc., at the following address: Moody's
Investors Service, Inc., ABS Monitoring Department, 99 Church Street, New York,
New York 10007, and (f) in the case of Standard & Poor's Ratings Services, a
division of The McGraw-Hill Companies, Inc., at the following address: Standard
& Poor's Rating Services, a division of The McGraw-Hill Companies, Inc., 55
Water Street, 40th Floor, New York, New York 10041, Attention: Asset Backed
Surveillance Department. Any notice required or permitted to be mailed to a
Noteholder or Certificateholder shall be given by first class mail, postage
prepaid, at the address of such Person as shown in the Note Register or the
Certificate Register, as applicable. Any notice so mailed within the time
prescribed in this Agreement shall be conclusively presumed to have been duly
given, whether or not the Noteholder or Certificateholder shall receive such
notice.

     SECTION 9.5 Severability of Provisions. If any one or more of the
covenants, agreements, provisions, or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions, or
terms shall be deemed severable from the remaining covenants, agreements,
provisions, or terms of this Agreement and shall in no way affect the validity
or enforceability of the other provisions of this Agreement or of the Notes,
the Certificates or the rights of the holders thereof.

     SECTION 9.6 Assignment. Notwithstanding anything to the contrary contained
herein, except as provided in Sections 6.3 and 7.2 and as provided in the
provisions of this Agreement concerning the resignation of the Servicer, this
Agreement may not be assigned by the Depositor or the Servicer unless (i)(A)
the Rating Agency Condition is satisfied and (B) the Indenture Trustee and the
Owner Trustee have consented thereto, which consent shall not be unreasonably
withheld or (ii) the Owner Trustee, the Indenture Trustee, the Noteholders of
Notes evidencing

                                      37
<PAGE>

not less than 66 2/3% of the principal amount of the Notes Outstanding and the
Certificateholders of Certificates evidencing not less than 66 2/3% of the
Certificate Balance consent thereto. Any transfer or assignment with respect to
the Servicer of all its rights, obligations and duties will not become
effective until a successor Servicer has assumed the Servicer's rights, duties
and obligations under this Agreement. In the event of a transfer or assignment
pursuant to clause (ii) above, the Rating Agencies shall be provided with
notice of such transfer or assignment.

     SECTION 9.7 Further Assurances. The Depositor and the Servicer agree to do
and perform, from time to time, any and all acts and to execute any and all
further instruments required or reasonably requested by the Owner Trustee or
the Indenture Trustee more fully to effect the purposes of this Agreement.

     SECTION 9.8 No Waiver; Cumulative Remedies. No failure to exercise and no
delay in exercising, on the part of the Owner Trustee, the Indenture Trustee,
the Noteholders or the Certificateholders, any right, remedy, power or
privilege hereunder, shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, remedy, power or privilege hereunder preclude
any other or further exercise thereof or the exercise of any other right,
remedy, power or privilege. The rights, remedies, powers and privileges therein
provided are cumulative and not exhaustive of any rights, remedies, powers and
privileges provided by law.

     SECTION 9.9 Third-Party Beneficiaries. This Agreement will inure to the
benefit of and be binding upon the parties hereto, the Indenture Trustee and
the Owner Trustee and their respective successors and permitted assigns and
each of the Indenture Trustee and the Owner Trustee may enforce the provisions
hereof as if they were parties thereto. Except as otherwise provided in this
Article IX, no other Person will have any right or obligation hereunder. The
parties hereto hereby acknowledge and consent to the pledge of this Agreement
by the Issuer to the Indenture Trustee for the benefit of the Noteholders
pursuant to the Indenture.

     SECTION 9.10 Actions by Noteholders or Certificateholders. (a) Wherever in
this Agreement a provision is made that an action may be taken or a notice,
demand, or instruction given by Noteholders or Certificateholders, such action,
notice, or instruction may be taken or given by any Noteholder or
Certificateholder, as applicable, unless such provision requires a specific
percentage of Noteholders or Certificateholders.

     (b) Any request, demand, authorization, direction, notice, consent,
waiver, or other act by a Noteholder or Certificateholder shall bind such
Noteholder or Certificateholder and every subsequent holder of such Note or
Certificate issued upon the registration of transfer thereof or in exchange
therefor or in lieu thereof in respect of anything done or omitted to be done
by the Owner Trustee, the Indenture Trustee or the Servicer in reliance
thereon, whether or not notation of such action is made upon such Note or
Certificate.

     SECTION 9.11 Limitation of Liability of Owner Trustee and Indenture
Trustee. (a) Notwithstanding anything contained herein to the contrary, this
Agreement has been countersigned by Wachovia Trust Company, National
Association not in its individual capacity but solely in its capacity as Owner
Trustee of the Issuer and in no event shall Wachovia Trust Company, National
Association, in its individual capacity or, except as expressly provided in the

                                      38
<PAGE>

Trust Agreement, as Owner Trustee of the Issuer have any liability for the
representations, warranties, covenants, agreements or other obligations of the
Issuer hereunder or in any of the certificates, notices or agreements delivered
pursuant hereto, as to all of which recourse shall be had solely to the assets
of the Issuer. For all purposes of this Agreement, in the performance of its
duties or obligations hereunder or in the performance of any duties or
obligations of the Issuer hereunder, the Owner Trustee shall be subject to, and
entitled to the benefits of, the terms and provisions of Articles VI and VII of
the Trust Agreement.

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

     SECTION 9.12 Savings Clause. It is the intention of the Depositor and the
Issuer that the transfer of the Trust Property contemplated herein constitute
an absolute transfer of the Trust Property, conveying good title to the Trust
Property from the Depositor to the Issuer. However, in the event that such
transfer is deemed to be a pledge or other transfer for security, the Depositor
hereby grants to the Issuer a first priority security interest in all of the
Depositor's right, title and interest in, to and under the Trust Property, and
all proceeds thereof, to secure a loan in an amount equal to all amounts
payable under the Notes and the Certificates, and in such event, this Agreement
shall constitute a security agreement under applicable law.

                                      39
<PAGE>

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

                           USAA AUTO OWNER TRUST 2004-1,
                           as Issuer

                           By:  Wachovia Trust Company, National Association,
                                not in its individual capacity but solely as
                                Owner Trustee

                                    By: /s/ Rita M. Ritrovato
                                        --------------------------
                                    Name:  Rita M. Ritrovato
                                    Title: Trust Officer

                           USAA FEDERAL SAVINGS BANK,
                           as Seller and Servicer

                           By: /s/ Rosemary M. Elizalde
                               --------------------------
                           Name:  Rosemary M. Elizalde
                           Title: Senior Vice President

                           USAA ACCEPTANCE, LLC,
                           as Depositor

                           By: /s/ Edwin T. McQuiston
                               --------------------------
                           Name:  Edwin T. McQuiston
                           Title: Vice President

<PAGE>

Accepted and agreed:

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

By: /s/ Joseph Constantino
    --------------------------
    Name:  Joseph Constantino
    Title: Assistant Vice President

WACHOVIA TRUST COMPANY, NATIONAL ASSOCIATION,
     not in its individual capacity
     but solely as Owner Trustee

By: /s/ Rita M. Ritrovato
    --------------------------
    Name:  Rita M. Ritrovato
    Title: Trust Officer

<PAGE>

                                   SCHEDULE A

                            SCHEDULE OF RECEIVABLES

                      [On File with the Indenture Trustee]

                                      A-1

<PAGE>

                                   SCHEDULE B

                          Location of Receivable Files

c/o USAA Federal Savings Bank
10750 McDermott Freeway
San Antonio, TX 78288

                                      B-1
<PAGE>

                                  Appendix A

                             DEFINITIONS AND USAGE

         The following rules of construction and usage shall be applicable to
any agreement or instrument that is governed by this Appendix:

         (a) All terms defined in this Appendix shall have the defined
meanings when used in any agreement or instrument governed hereby and in any
certificate or other document made or delivered pursuant thereto unless
otherwise defined therein.

         (b) As used herein, in any agreement or instrument governed hereby
and in any certificate or other document made or delivered pursuant thereto,
accounting terms not defined in this Appendix or in any such agreement,
instrument, certificate or other document, and accounting terms partly defined
in this Appendix or in any such agreement, instrument, certificate or other
document, to the extent not defined, shall have the respective meanings given
to them under generally accepted accounting principles as in effect on the
date of such agreement or instrument. To the extent that the definitions of
accounting terms in this Appendix or in any such agreement, instrument,
certificate or other document are inconsistent with the meanings of such terms
under generally accepted accounting principles, the definitions contained in
this Appendix or in any such instrument, certificate or other document shall
control.

         The words "hereof," "herein," "hereunder" and words of similar import
when used in an agreement or instrument refer to such agreement or instrument
as a whole and not to any particular provision or subdivision thereof;
references in an agreement or instrument to "Article," "Section" or another
subdivision or to an attachment are, unless the context otherwise requires, to
an article, section or subdivision of or an attachment to such agreement or
instrument; and the term "including" and its variations means "including
without limitation."

         The definitions contained in this Appendix are equally applicable to
both the singular and plural forms of such terms and to the masculine as well
as to the feminine and neuter genders of such terms.

         Any agreement, instrument or statute defined or referred to below or
in any agreement or instrument that is governed by this Appendix means such
agreement or instrument or statute as from time to time amended, modified or
supplemented, including (in the case of agreements or instruments) by waiver
or consent and (in the case of statutes) by succession of comparable successor
statutes and includes (in the case of agreements or instruments) references to
all attachments thereto and instruments incorporated therein. References to a
Person are also to its permitted successors and assigns.

                                  Definitions

         "Accrued Class A Note Interest" shall mean, with respect to any
Payment Date, the sum of the Class A Noteholders' Monthly Accrued Interest for
such Payment Date and the Class A Noteholders' Interest Carryover Shortfall
for such Payment Date.

                                 Appendix A-1
<PAGE>

         "Accrued Class B Certificate Interest" shall mean, with respect to
any Payment Date, the sum of the Class B Certificateholders' Monthly Accrued
Interest for such Payment Date and the Class B Certificateholders' Interest
Carryover Shortfall for such Payment Date.

         "Act" shall have the meaning specified in Section 11.3(a) of the
Indenture.

         "Administration Agreement" shall mean the Administration Agreement,
dated as of March 2, 2004, by and among the Administrator, the Issuer and the
Indenture Trustee.

         "Administrator" shall mean the Bank, in its capacity as administrator
under the Administration Agreement, or any successor Administrator thereunder.

         "Advance" shall mean the amount of interest, as of a Determination
Date, which the Servicer is required to advance on the Receivables pursuant to
Section 4.4(a) of the Sale and Servicing Agreement.

         "Affiliate" shall mean, 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 shall mean 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" shall have meanings correlative to the foregoing.

         "Amount Financed" shall mean, with respect to a Receivable, the
amount advanced under the Receivable toward the purchase price of the Financed
Vehicle and any related costs.

         "Annual Percentage Rate" or "APR" of a Receivable shall mean the
annual rate of finance charges stated in the Receivable.

         "Applicable Tax State" shall mean, as of any date of determination,
each State as to which any of the following is then applicable: (a) a State in
which the Owner Trustee maintains its Corporate Trust Office and (b) the State
of Texas.

         "Authenticating Agent" shall have the meaning specified in Section
2.14 of the Indenture or 3.14 of the Trust Agreement, as applicable.

         "Authorized Officer" shall mean, (i) with respect to the Issuer, any
officer within the Corporate Trust Office of the Owner Trustee, including any
vice president, assistant vice president, secretary, assistant secretary or
any other officer of the Owner Trustee customarily performing functions
similar to those performed by any of the above designated officers and, for so
long as the Administration Agreement is in full force and effect, any officer
of the Administrator who is authorized to act for the Administrator in matters
relating to the Issuer and to be acted upon by the Administrator pursuant to
the Administration Agreement; and (ii) with respect to the Indenture Trustee
or the Owner Trustee, any officer within the Corporate Trust Office of the
Indenture Trustee or the Owner Trustee, as the case may be, including any vice
president, assistant vice president, secretary, assistant secretary or any
other officer of the Indenture Trustee or the Owner Trustee, as the case may
be, customarily performing functions similar to those performed by any of the
above designated officers and also, with respect to a

                                 Appendix A-2
<PAGE>

particular matter, any other officer to whom such matter is referred
because of such officer's knowledge of and familiarity with the particular
subject, in each case having direct responsibility for the administration of
the Indenture or the Trust Agreement, as applicable, and shall also mean, with
respect to the Owner Trustee, any officer of the Administrator.

         "Available Collections" shall mean, for any Payment Date, the sum of
the following amounts with respect to the Collection Period preceding such
Payment Date: (i) all payments collected with respect to Receivables; (ii) all
Liquidation Proceeds attributable to Receivables which were designated as
Defaulted Receivables in prior Collection Periods in accordance with the
Servicer's customary servicing procedures; (iii) all Advances made by the
Servicer of interest due on the Receivables; (iv) the Purchase Amount received
with respect to each Receivable that became a Purchased Receivable during such
Collection Period; and (v) partial prepayments of any refunded item included
in the principal balance of a Receivable, such as extended warranty protection
plan costs, or physical damage, credit life, disability insurance premiums, or
any partial prepayment which causes a reduction in the Obligor's periodic
payment to an amount below the Scheduled Payment as of the Cut-off Date;
provided however, that in calculating the Available Collections the following
will be excluded: (i) amounts received on any Receivable to the extent that
the Servicer has previously made an unreimbursed Advance on such Receivable
and the amount received exceeds the accrued and unpaid interest on such
Receivable; (ii) amounts received on any of the Receivables to the extent that
the Servicer has previously made an unreimbursed Advance on a Receivable which
is not recoverable from collections on the particular Receivable; (iii) all
payments and proceeds (including Liquidation Proceeds) of any Receivables the
Purchase Amount of which has been included in Available Funds in a prior
Collection Period; (iv) Liquidation Proceeds with respect to a Receivable
attributable to accrued and unpaid interest thereon (but not including
interest for the then current Collection Period) but only to the extent of any
unreimbursed Advances; and (v) amounts constituting the Supplemental Servicing
Fee.

         "Available Funds" shall mean, for any Payment Date, the sum of the
Available Collections for such Payment Date and the Reserve Account Excess
Amount for such Payment Date.

         "Average Delinquency Ratio" shall mean, for any Payment Date, the
average of the Delinquency Ratios for the preceding three Collection Periods.

         "Average Delinquency Trigger Percentage" shall mean 1.25%.

         "Average Net Loss Ratio" shall mean, for any Payment Date, the
average of the Net Loss Ratios for the preceding three Collection Periods.

         "Average Net Loss Trigger Percentage" shall mean 1.25%.

         "Bank" shall mean USAA Federal Savings Bank, a federally chartered
savings association.

         "Bankruptcy Code" shall mean the United States Bankruptcy Code, 11
U.S.C. 101 et seq., as amended.

                                 Appendix A-3
<PAGE>

         "Basic Documents" shall mean the Certificate of Trust, the Trust
Agreement, the Sale and Servicing Agreement, the Receivables Purchase
Agreement, the Indenture, the Administration Agreement, the Underwriting
Agreement, the Note Depository Agreement and the other documents and
certificates delivered in connection therewith.

         "Book-Entry Certificate" shall mean, a beneficial interest in any of
the Class B Certificates issued in book-entry form as described in Section 3.2
of the Trust Agreement.

         "Book-Entry Note" shall mean a beneficial interest in any of the
Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the Class A-4
Notes, in each case issued in book-entry form.

         "Business Day" shall mean any day other than a Saturday, a Sunday or
a day on which banking institutions or trust companies in the State of New
York, the State of Delaware or the State of Texas are authorized by law,
regulation or executive order to be closed.

         "Certificate Balance" shall mean, as the context so requires, (i)
with respect to all the Class B Certificates, an amount equal to, initially,
the Initial Certificate Balance of the Class B Certificates and, thereafter,
an amount equal to the Initial Certificate Balance of the Class B
Certificates, reduced by all amounts distributed to Class B Certificateholders
and allocable to principal or (ii) with respect to any Class B Certificate, an
amount equal to, initially, the initial denomination of such Class B
Certificate and, thereafter, an amount equal to such initial denomination,
reduced by all amounts distributed in respect of such Class B Certificate and
allocable to principal; provided, that, unless all of the Certificates are
owned by the Depositor or an Affiliate of the Depositor, in determining
whether the holders of Class B Certificates evidencing the requisite portion
or percentage of the Certificate Balance have given any request, demand,
authorization, direction, notice, consent, or waiver hereunder or under any
Basic Document, Class B Certificates owned by the Issuer, any other obligor
upon the Class B Certificates, the Depositor, the Seller, the Servicer or any
Affiliate of any of the foregoing Persons shall be disregarded and deemed to
be excluded from the Certificate Balance except that, in determining whether
the Indenture Trustee and Owner Trustee shall be protected in relying on any
such request, demand, authorization, direction, notice, consent, or waiver,
only Class B Certificates that a Trustee Officer of the Indenture Trustee, if
applicable, and an Authorized Officer of the Owner Trustee with direct
responsibility for the administration of the Trust Agreement, if applicable,
knows to be so owned shall be so disregarded. Class B Certificates so owned
that have been pledged in good faith may be regarded as included in the
Certificate Balance if the pledgee establishes to the satisfaction of the
Indenture Trustee or the Owner Trustee, as applicable, the pledgee's right so
to act with respect to such Class B Certificates and that the pledgee is not
the Issuer, any other obligor upon the Certificates, the Depositor, the
Seller, the Servicer or any Affiliate of any of the foregoing Persons.

         "Certificate Distribution Account" shall mean the account established
and maintained as such pursuant to Section 4.1(c) of the Sale and Servicing
Agreement.

         "Certificate of Trust" shall mean the Certificate of Trust in the
form of Exhibit B to the Trust Agreement filed for the Trust pursuant to
Section 3810(a) of the Statutory Trust Statute.

                                 Appendix A-4
<PAGE>

         "Certificate Owner" shall mean, with respect to any Book-Entry
Certificate, the Person who is the beneficial owner of the Book-Entry
Certificate, as reflected on the books of the Clearing Agency or on the books
of a Person maintaining an account with such Clearing Agency (directly as a
Clearing Agency Participant or as an indirect participant, in each case in
accordance with the rules of such Clearing Agency).

         "Certificate Paying Agent" shall mean any paying agent or co-paying
agent appointed pursuant to Section 3.10 of the Trust Agreement and shall
initially be the Owner Trustee.

         "Certificate Pool Factor" shall mean, as of the close of business on
the last day of a Collection Period, a seven-digit decimal figure calculated
by the Servicer and equal to the Certificate Balance of the Class B
Certificates (after giving effect to any reductions therein to be made on the
immediately following Payment Date) divided by the Initial Certificate Balance
of the Class B Certificates. Each Certificate Pool Factor will be 1.0000000 as
of the Closing Date; thereafter, each Certificate Pool Factor will decline to
reflect reductions in the Certificate Balance of the Class B Certificates.

         "Certificate Register" and "Certificate Registrar" shall have the
respective meanings specified in Section 3.5 of the Trust Agreement.

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

         "Certificates" shall mean the Class B Certificates.

         "Class" shall mean (i) a class of Notes, which may be the Class A-1
Notes, the Class A-2 Notes, the Class A-3 Notes or the Class A-4 Notes or (ii)
the Class B Certificates.

         "Class A Notes" shall mean, collectively, the Class A-1 Notes, the
Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes.

         "Class A Noteholders' Interest Carryover Shortfall" shall mean, for
any Payment Date, the excess of the Accrued Class A Note Interest for the
preceding Payment Date over the amount in respect of interest that is actually
paid to Noteholders of Class A Notes on such preceding Payment Date, plus
interest on the amount of interest due but not paid to Noteholders of Class A
Notes on the preceding Payment Date, to the extent permitted by law, at the
respective Note Interest Rates borne by such Class A Notes for the related
Interest Period.

         "Class A Noteholders' Monthly Accrued Interest" shall mean, with
respect to any Payment Date, the aggregate interest accrued for the related
Interest Period on the Class A-1 Notes, the Class A-2 Notes, the Class A-3
Notes and the Class A-4 Notes at the respective Note Interest Rate for such
Class in accordance with its terms on the outstanding principal amount of the
Notes of each such Class on the immediately preceding Payment Date or the
Closing Date, as the case may be, after giving effect to all payments of
principal to the holders of the Notes of such Class on or prior to such
preceding Payment Date.

         "Class A-1 Final Scheduled Payment Date" shall mean the March 2005
Payment Date.

                                 Appendix A-5
<PAGE>

         "Class A-1 Noteholder" shall mean the Person in whose name a Class
A-1 Note is registered on the Note Register.

         "Class A-1 Notes" shall mean the $505,000,000 aggregate initial
principal amount Class A-1 1.08% Asset Backed Notes issued by the Trust
pursuant to the Indenture, substantially in the form of Exhibit A-1 to the
Indenture.

         "Class A-1 Rate" shall mean 1.08% per annum. Interest with respect to
the Class A-1 Notes shall be computed on the basis of actual days elapsed in
the applicable Interest Period divided by 360 for all purposes of the Basic
Documents.

         "Class A-2 Final Scheduled Payment Date" shall mean the September
2006 Payment Date.

         "Class A-2 Noteholder" shall mean the Person in whose name a Class
A-2 Note is registered on the Note Register.

         "Class A-2 Notes" shall mean the $461,000,000 aggregate initial
principal amount Class A-2 1.43% Asset Backed Notes issued by the Trust
pursuant to the Indenture, substantially in the form of Exhibit A-2 to the
Indenture.

         "Class A-2 Rate" shall mean 1.43% per annum. Interest with respect to
the Class A-2 Notes shall be computed on the basis of a 360-day year
consisting of twelve 30-day months for all purposes of the Basic Documents.

         "Class A-3 Final Scheduled Payment Date" shall mean the April 2008
Payment Date.

         "Class A-3 Noteholder" shall mean the Person in whose name a Class
A-3 Note is registered on the Note Register.

         "Class A-3 Notes" shall mean the $596,000,000 aggregate initial
principal amount Class A-3 2.06% Asset Backed Notes issued by the Trust
pursuant to the Indenture, substantially in the form of Exhibit A-3 to the
Indenture.

         "Class A-3 Rate" shall mean 2.06% per annum. Interest with respect to
the Class A-3 Notes shall be computed on the basis of a 360-day year
consisting of twelve 30-day months for all purposes of the Basic Documents.

         "Class A-4 Final Scheduled Payment Date" shall mean the October 2010
Payment Date.

         "Class A-4 Noteholder" shall mean the Person in whose name a Class
A-4 Note is registered on the Note Register.

         "Class A-4 Notes" shall mean the $295,250,000 aggregate initial
principal amount Class A-4 2.67% Asset Backed Notes issued by the Trust
pursuant to the Indenture, substantially in the form of Exhibit A-4 to the
Indenture.

                                 Appendix A-6
<PAGE>

         "Class A-4 Rate" shall mean 2.67% per annum. Interest with respect to
the Class A-4 Notes shall be computed on the basis of a 360-day year
consisting of twelve 30-day months for all purposes of the Basic Documents.

         "Class B Certificateholder" shall mean the Person in whose name a
Class B Certificate is registered in the Certificate Register.

         "Class B Certificateholders' Interest Carryover Shortfall" shall
mean, with respect to any Payment Date, the excess of the Accrued Class B
Certificate Interest for the preceding Payment Date over the amount in respect
of interest that is actually paid to Class B Certificateholders on such
preceding Payment Date, plus thirty (30) days of interest on such excess, to
the extent permitted by law, at the Class B Rate.

         "Class B Certificateholders' Monthly Accrued Interest" shall mean,
with respect to any Payment Date, thirty (30) days of interest (or, in the
case of the first Payment Date, interest accrued from and including the
Closing Date to but excluding such Payment Date) at the Class B Rate on the
Certificate Balance on the immediately preceding Payment Date or the Closing
Date, as the case may be, after giving effect to all distributions allocable
to the reduction of the Certificate Balance made on or prior to such preceding
Payment Date.

         "Class B Certificates" shall mean the $42,750,150 aggregate initial
principal balance Class B 3.21% Asset Backed Certificates evidencing the
beneficial interest of a Class B Certificateholder in the property of the
Trust, substantially in the form of Exhibit A to the Trust Agreement;
provided, however, that the Owner Trust Estate has been pledged to the
Indenture Trustee to secure payment of the Notes and that the rights of the
Class B Certificateholders to receive distributions on the Class B
Certificates are subordinated to the rights of the Noteholders as described in
the Sale and Servicing Agreement, the Indenture and the Trust Agreement.

         "Class B Final Scheduled Payment Date" shall mean the October 2010
Payment Date.

         "Class B Rate" shall mean 3.21% per annum. Interest with respect to
the Class B Certificates shall be computed on the basis of a 360-day year
consisting of twelve 30-day months for all purposes of the Basic Documents.

         "Clearing Agency" shall mean an organization registered as a
"clearing agency" pursuant to Section 17A of the Exchange Act.

         "Clearing Agency Participant" shall mean a broker, dealer, bank,
other financial institution or other Person for whom from time to time a
Clearing Agency effects book-entry transfers and pledges of securities
deposited with the Clearing Agency.

         "Closing Date" shall mean March 2, 2004.

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

         "Collateral" shall have the meaning specified in the Granting Clause
of the Indenture.

                                 Appendix A-7
<PAGE>

         "Collection Account" shall mean the account or accounts established
and maintained as such pursuant to Section 4.1(a) of the Sale and Servicing
Agreement.

         "Collection Period" shall mean, with respect to the first Payment
Date, the period from and including the Cut-off Date to and including March
31, 2004 and, with respect to each subsequent Payment Date, the calendar month
preceding the calendar month in which the Payment Date occurs.

         "Collections" shall mean all amounts collected by the Servicer (from
whatever source) on or with respect to the Receivables.

         "Commission" shall mean the Securities and Exchange Commission.

         "Computer Tape" shall mean the computer tape generated by the Seller
which provides information relating to the Receivables and which was used by
the Seller in selecting the Receivables conveyed to the Trust hereunder.

         "Corporate Trust Office" shall mean, (i) with respect to the Owner
Trustee, the principal corporate trust office of the Owner Trustee located at
One Rodney Square, 920 King Street, 1st Floor, Wilmington, Delaware 19801 or
at such other address as the Owner Trustee may designate from time to time by
notice to the Certificateholders and the Depositor, or the principal corporate
trust office of any successor Owner Trustee (the address of which the
successor Owner Trustee will notify the Certificateholders and the Depositor);
and (ii) with respect to the Indenture Trustee, the principal corporate trust
office of the Indenture Trustee located at 4 New York Plaza, 6th Floor, New
York, New York 10004, Attention: Institutional Trust Services/Global
Debt--USAA 2004-1 or at such other address as the Indenture Trustee may
designate from time to time by notice to the Noteholders and the Issuer, or
the principal corporate trust office of any successor Indenture Trustee (the
address of which the successor Indenture Trustee will notify the Noteholders
and the Issuer).

         "Cut-off Date" shall mean February 1, 2004.

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

         "Defaulted Receivable" shall mean a Receivable (i) that the Servicer
determines is unlikely to be paid in full or (ii) with respect to which at
least 5% of a Scheduled Payment is 120 or more days delinquent as of the end
of a calendar month.

         "Definitive Certificates" shall have the meaning specified in Section
3.12 of the Trust Agreement.

         "Definitive Notes" shall have the meaning specified in Section 2.11
of the Indenture.

         "Delinquency Ratio" shall mean, for any Collection Period, the ratio,
expressed as a percentage, of (a) the Principal Balance of all outstanding
Receivables (other than Purchased Receivables and Defaulted Receivables) that
are 60 or more days delinquent as of the end of such Collection Period,
determined in accordance with the Servicer's customary practices, plus

                                 Appendix A-8
<PAGE>

Receivables as to which the related Financial Vehicle has been repossessed but
not sold, to (b) the Pool Balance as of the last day of such Collection
Period.

         "Depositor" shall mean USAA Acceptance, LLC, a Delaware limited
liability company.

         "Determination Date" shall mean, with respect to any Collection
Period, the second Business Day immediately preceding the Payment Date
following such Collection Period.

         "Eligible Deposit Account" shall mean either (i) a segregated account
with an Eligible Institution or (ii) a segregated trust account with the
corporate trust department of a depository institution organized under the
laws of the U.S. or any one of the states 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 credit rating from each
Rating Agency in one of its generic rating categories which signifies
investment grade.

         "Eligible Institution" shall mean either (i) the corporate trust
department of the Indenture Trustee or the Owner Trustee, as applicable; or
(ii) a depository institution organized under the laws of the U.S. or any one
of the states thereof or the District of Columbia (or any domestic branch of a
foreign bank), (1) which has either (A) a long-term unsecured debt rating of
at least "AA-" by Standard & Poor's and "Baa3" by Moody's or (B) a short-term
unsecured debt rating or certificate of deposit rating of "A-1+" by Standard &
Poor' and "Prime-1" by Moody's and (2) whose deposits are insured by the FDIC.

         "ERISA" shall mean the Employee Retirement Income Security Act of
1974, as amended.

         "Event of Default" shall have the meaning specified in Section 5.1 of
the Indenture.

         "Event of Servicing Termination" shall mean an event specified in
Section 7.1 of the Sale and Servicing Agreement.

         "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

         "Executive Officer" shall mean, with respect to any corporation or
depository institution, the Chief Executive Officer, Chief Operating Officer,
Chief Financial Officer, President, Executive Vice President, any Vice
President, the Secretary or the Treasurer of such corporation and, with
respect to any partnership, any general partner thereof.

         "Expenses" shall have the meaning assigned to such term in Section
7.2 of the Trust Agreement.

         "FDIC" shall mean the Federal Deposit Insurance Corporation.

         "Final Scheduled Payment Date" shall mean, with respect to (i) the
Class A-1 Notes, the Class A-1 Final Scheduled Payment Date, (ii) the Class
A-2 Notes, the Class A-2 Final Scheduled Payment Date, (iii) the Class A-3
Notes, the Class A-3 Final Scheduled Payment

                                 Appendix A-9
<PAGE>

Date, (iv) the Class A-4 Notes, the Class A-4 Final Scheduled Payment
Date, and (v) the Class B Certificates, the Class B Final Scheduled Payment
Date.

         "Financed Vehicle" shall mean a new or used automobile or light-duty
truck, together with all accessions thereto, securing an Obligor's
indebtedness under the respective Receivable.

         "Grant" shall mean to mortgage, pledge, bargain, sell, warrant,
alienate, remise, release, convey, assign, transfer, create, and to grant a
lien upon and a security interest in and right of set-off against, and to
deposit, set over and confirm pursuant to the Indenture. A Grant of the
Collateral or of any other agreement or instrument shall include all rights,
powers and options (but none of the obligations) of the granting party
thereunder, including the immediate and continuing right to claim for,
collect, receive and give receipt for principal and interest payments in
respect of the Collateral and all other monies payable thereunder, to give and
receive notices and other communications, to make waivers or other agreements,
to exercise all rights and options, to bring Proceedings in the name of the
granting party or otherwise, and generally to do and receive anything that the
granting party is or may be entitled to do or receive thereunder or with
respect thereto.

         "Indemnified Parties" shall have the meaning assigned to such term in
Section 7.2 of the Trust Agreement.

         "Indenture" shall mean the Indenture, dated as of March 2, 2004, by
and between the Trust and the Indenture Trustee.

         "Indenture Trust Estate" shall mean all money, instruments, rights
and other property that are subject or intended to be subject to the lien and
security interest of Indenture for the benefit of the Noteholders (including,
without limitation, all property and interests Granted to the Indenture
Trustee), including all proceeds thereof.

         "Indenture Trustee" shall mean JPMorgan Chase Bank, a New York
banking corporation, not in its individual capacity but solely as Indenture
Trustee under the Indenture, or any successor Indenture Trustee under the
Indenture.

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

         "Independent Certificate" shall mean a certificate or opinion to be
delivered to the Indenture Trustee under the circumstances described in, and
otherwise complying with, the applicable requirements of Section 11.1 of the
Indenture, made by an Independent appraiser, firm of certified public
accountants or other expert appointed by an Issuer Order and approved by the
Indenture Trustee in the exercise of reasonable care, and such opinion or
certificate shall state that the signer has read the definition of
"Independent" in the Indenture and that the signer is Independent within the
meaning thereof.

                                 Appendix A-10
<PAGE>

         "Initial Certificate Balance" shall mean $42,750,150.

         "Initial Pool Balance" shall mean $1,900,000,150.08.

         "Insolvency Event" shall mean, with respect to any Person, (i) the
making of a general assignment for the benefit of creditors, (ii) the filing
of a voluntary petition in bankruptcy, (iii) being adjudged a bankrupt or
insolvent, or having had entered against such Person an order for relief in
any bankruptcy or insolvency proceeding, (iv) the filing by such Person of a
petition or answer seeking reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief under any statute,
law or regulation, (v) the filing by such Person of an answer or other
pleading admitting or failing to contest the material allegations of a
petition filed against such Person in any proceeding specified in (vii) below,
(vi) seeking, consent to or acquiescing in the appointment of a trustee,
receiver or liquidator of such Person or of all or any substantial part of the
assets of such Person or (vii) the failure to obtain dismissal within 60 days
of the commencement of any proceeding against such Person seeking
reorganization, arrangement, composition, readjustment, liquidation,
dissolution or similar relief under any statute, law or regulation, or the
entry of any order appointing a trustee, liquidator or receiver of such Person
or of such Person's assets or any substantial portion thereof.

         "Interest Period" shall mean, with respect to any Payment Date (i)
with respect to the Class A-1 Notes, from and including the Closing Date (in
the case of the first Payment Date) or from and including the most recent
Payment Date on which interest has been paid to but excluding the following
Payment Date and (ii) with respect to each Class of Notes (other than the
Class A-1 Notes) and the Certificates, from and including the Closing Date (in
the case of the first Payment Date) or from and including the 15th day of the
calendar month preceding each Payment Date to but excluding the 15th day of
the calendar month of such Payment Date.

         "IRS" shall mean the Internal Revenue Service.

         "Issuer" shall mean the Trust unless a successor replaces it and,
thereafter, shall mean the successor.

         "Issuer Order" and "Issuer Request" shall mean a written order or
request signed in the name of the Issuer by any one of its Authorized Officers
and delivered to the Indenture Trustee.

         "Lien" shall mean a security interest, lien, charge, pledge, equity,
or encumbrance of any kind other than, in respect of a Receivable, tax liens,
mechanics' liens, and any liens which attach to the respective Receivable by
operation of law.

         "Liquidation Proceeds" shall mean with respect to any Receivable (a)
insurance proceeds received by the Servicer and (b) monies collected by the
Servicer on a Defaulted Receivable from whatever source, including but not
limited to proceeds of Financed Vehicles after repossession, net of any
payments required by law to be remitted to the Obligor.

         "Monthly Remittance Condition" shall mean either (a) the Servicer
obtains a short-term certificate of deposit rating of the Servicer from
Standard & Poor's and Moody's of "A-1+" and "Prime-1," respectively, or (b)
the Servicer provides the Indenture Trustee with a letter from each Rating
Agency to the effect that the current ratings assigned to the Securities by
such

                                 Appendix A-11
<PAGE>

Rating Agency will not be adversely affected by the remittance of Collections
on a monthly, rather than a daily, basis.

         "Moody's" shall mean Moody's Investors Service, Inc.

         "Net Loss Ratio" shall mean, for any Collection Period, the ratio,
expressed as an annualized percentage, of (a) Realized Losses minus Recoveries
for such Collection Period, to (b) the average of the Pool Balances on the
first day of such Collection Period and the last day of such Collection
Period.

         "Note Depository Agreement" shall mean collectively (i) the Letter of
Representations, dated as of March 2, 2004 by and among the Issuer, JPMorgan
Chase Bank, as agent and The Depository Trust Company regarding the Notes and
(ii) the Letter of Representations, dated as of March 2, 2004 by and among the
Issuer, JPMorgan Chase Bank, as agent and The Depository Trust Company
regarding the Certificates.

         "Note Interest Rate" shall mean the Class A-1 Rate, the Class A-2
Rate, the Class A-3 Rate or the Class A-4 Rate, as applicable.

         "Note Owner" shall mean, with respect to any Book-Entry Note, the
Person who is the beneficial owner of such Book-Entry Note, as reflected on
the books of the Clearing Agency or on the books of a Person maintaining an
account with such Clearing Agency (directly as a Clearing Agency Participant
or as an indirect participant, in each case in accordance with the rules of
such Clearing Agency).

         "Note Paying Agent" shall mean the Indenture Trustee or any other
Person that meets the eligibility standards for the Indenture Trustee
specified in Section 6.11 of the Indenture and is authorized by the Issuer to
make payments to and distributions from the Collection Account (including the
Principal Distribution Account), including payment of principal of or interest
on the Notes on behalf of the Issuer.

         "Note Pool Factor" shall mean, with respect to each Class of Notes as
of the close of business on the last day of a Collection Period, a seven-digit
decimal figure calculated by the Servicer and equal to the outstanding
principal balance of such Class of Notes (after giving effect to any
reductions thereof to be made on the immediately following Payment Date)
divided by the original outstanding principal balance of such Class of Notes.
The Note Pool Factor will be 1.0000000 as of the Closing Date; thereafter, the
Note Pool Factor will decline to reflect reductions in the outstanding
principal amount of such Class of Notes.

         "Note Register" and "Note Registrar" shall have the respective
meanings specified in Section 2.5 of the Indenture.

         "Noteholder" or "holder of a Note" shall mean the Person in whose
name a Note is registered on the Note Register.

         "Notes" shall mean the Class A-1 Notes, the Class A-2 Notes, the
Class A-3 Notes and the Class A-4 Notes, collectively.

                                 Appendix A-12
<PAGE>

         "Obligor" on a Receivable shall mean the purchaser or co-purchasers
of the Financed Vehicle or any other Person who owes payments under the
Receivable.

         "Officer's Certificate" shall mean (i) with respect to the Trust, a
certificate signed by any Authorized Officer of the Trust and (ii) with
respect to the Depositor, the Seller or the Servicer, a certificate signed by
the chairman of the board, the president, any executive or senior vice
president, any vice president, the treasurer or the controller of the
Depositor or the Servicer, as applicable.

         "Opinion of Counsel" shall mean a written opinion of counsel which
counsel shall be acceptable to the Indenture Trustee, the Owner Trustee or the
Rating Agencies, as applicable.

         "Optional Purchase Percentage" shall mean 10%.

         "Outstanding" shall mean with respect to the Securities, as of the
date of determination, all Securities theretofore authenticated and delivered
under the Indenture or the Trust Agreement, as applicable, except:

                           (a) Securities theretofore (i) cancelled by the
                  Note Registrar or the Certificate Registrar, as applicable,
                  or (ii) delivered to the Note Registrar or the Certificate
                  Registrar, as applicable, for cancellation;

                           (b) Securities or portions thereof the payment for
                  which money in the necessary amount has been theretofore
                  deposited with (i)in the case of the Notes, the Indenture
                  Trustee or any Note Paying Agent in trust for the
                  Noteholders of such Notes (provided, however, that if such
                  Notes are to be prepaid, notice of such prepayment has been
                  duly given pursuant to the Indenture or provision for such
                  notice has been made, satisfactory to the Indenture Trustee)
                  or (ii) in the case of the Certificates, the Owner Trustee
                  or any Certificate Paying Agent in trust for the
                  Certificateholders of such Certificates (provided, however,
                  that if such Certificates are to be prepaid, notice of such
                  prepayment has been duly given pursuant to the Trust
                  Agreement or provision for such notice has been made,
                  satisfactory to the Owner Trustee); and

                           (c) Securities in exchange for or in lieu of which
                  other Securities have been authenticated and delivered
                  pursuant to the Indenture or the Trust Agreement, as
                  applicable, unless proof satisfactory to the Indenture
                  Trustee or the Owner Trustee, as applicable, is presented
                  that any such Securities are held by a protected purchaser;

provided, that in determining whether the holders of Notes or Certificates
evidencing the requisite principal amount of the Notes Outstanding or
Certificates Outstanding have given any request, demand, authorization,
direction, notice, consent, or waiver under any Basic Document, Securities
owned by the Issuer, any other obligor upon the Securities, the Depositor, the
Seller, the Servicer or any Affiliate of any of the foregoing Persons shall be
disregarded and deemed not to be Outstanding, except that, in determining
whether the Indenture Trustee or Owner Trustee, as applicable, shall be
protected in relying on any such request, demand, authorization, direction,
notice, consent, or waiver, only (i) Notes that a Responsible Officer of the
Indenture Trustee

                                 Appendix A-13
<PAGE>

knows to be so owned and (ii) Certificates that a Responsible Officer
of the Owner Trustee knows to be so owned, shall be so disregarded; provided,
however, if the Issuer, any other obligor upon the Securities, the Depositor,
the Seller, the Servicer or any Affiliate of any of the foregoing Persons owns
an entire Class of Securities, such Securities shall be deemed to be
Outstanding. Notes owned by the Issuer, any other obligor upon the Notes, the
Depositor, the Seller, the Servicer or any Affiliate of any of the foregoing
Persons that have been pledged in good faith may be regarded as Outstanding if
the pledgee establishes to the satisfaction of the Indenture Trustee the
pledgee's right so to act with respect to such Notes and that the pledgee is
not the Issuer, any other obligor upon the Notes, the Depositor, the Seller,
the Servicer or any Affiliate of any of the foregoing Persons. Certificates
owned by the Issuer, any other obligor upon the Certificates, the Seller, the
Servicer or any Affiliate of any of the foregoing Persons that have been
pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Owner Trustee the pledgee's right so to
act with respect to such Certificates and that the pledgee is not the Issuer,
any other obligor upon the Certificates, the Depositor, the Seller, the
Servicer or any Affiliate of any of the foregoing Persons.

         "Outstanding Advances" on the Receivables shall mean the sum, as of
the close of business on the last day of a Collection Period, of all Advances
as reduced as provided in Section 4.4(a) of the Sale and Servicing Agreement.

         "Owner Trustee" shall mean Wachovia Trust Company, National
Association, a national banking association, not in its individual capacity
but solely as Owner Trustee under the Trust Agreement, or any successor Owner
Trustee under the Trust Agreement.

         "Owner Trust Estate" shall mean all right, title and interest of the
Trust in, to and under the property and rights assigned to the Trust pursuant
to Article II of the Sale and Servicing Agreement.

         "Payment Date" shall mean the fifteenth (15th) day of each calendar
month or, if such day is not a Business Day, the next succeeding Business Day.

         "Permitted Investments" shall mean, on any date of determination,
book-entry securities, negotiable instruments or securities represented by
instruments in bearer or registered form with maturities not exceeding the
Business Day preceding the next Payment Date which evidence:

                           (a) direct non-callable obligations of, and
                  obligations fully guaranteed as to timely payment by, the
                  United States of America;

                           (b) demand deposits, time deposits or certificates
                  of deposit of any depository institution or trust company
                  incorporated under the laws of the United States of America
                  or any state thereof (or any domestic branch of a foreign
                  bank) and subject to supervision and examination by federal
                  or State banking or depository institution authorities;
                  provided, however, that at the time of the investment or
                  contractual commitment to invest therein, the commercial
                  paper or other short-term unsecured debt obligations (other
                  than such obligations the rating of which is based on the
                  credit of a Person other than such depository institution

                                 Appendix A-14
<PAGE>

                  or trust company) thereof shall have a credit rating from
                  each of the Rating Agencies in the highest investment
                  category granted thereby;

                           (c) commercial paper having, at the time of the
                  investment or contractual commitment to invest therein, a
                  rating from each of the Rating Agencies in the highest
                  investment category granted thereby;

                           (d) investments in money market funds having a
                  rating from each of the Rating Agencies in the highest
                  investment category granted thereby (including funds for
                  which the Indenture Trustee or the Owner Trustee or any of
                  their respective Affiliates is investment manager or
                  advisor);

                           (e) bankers' acceptances issued by any depository
                  institution or trust company referred to in clause (b)
                  above;

                           (f) repurchase obligations with respect to any
                  security that is a direct non-callable obligation of, or
                  fully guaranteed by, the United States of America or any
                  agency or instrumentality thereof the obligations of which
                  are backed by the full faith and credit of the United States
                  of America, in either case entered into with a depository
                  institution or trust company (acting as principal) described
                  in clause (b); and

                           (g) any other investment with respect to which the
                  Issuer or the Servicer has received written notification
                  from the Rating Agencies that the acquisition of such
                  investment as a Permitted Investment will not result in a
                  withdrawal or downgrading of the ratings on the Notes or the
                  Certificates.

         "Person" shall mean any individual, corporation, estate, partnership,
joint venture, association, joint stock company, trust, unincorporated
organization, or government or any agency or political subdivision thereof.

         "Plan" means an employee benefit plan (as defined in section 3(3) of
ERISA) that is subject to Title I of ERISA, a plan (as defined in section
4975(e)(1) of the Code) and any entity whose underlying assets include plan
assets by reason of a plan's investment in the entity or otherwise.

         "Pool Balance" shall mean on any date of determination, the aggregate
outstanding Principal Balance of the Receivables (exclusive of Purchased
Receivables and Defaulted Receivables) as of such date of determination.

         "Pool Factor" as of the last day of a Collection Period shall mean a
seven-digit decimal figure equal to the Pool Balance at that time divided by
the Initial Pool Balance.

         "Predecessor Note" shall mean, with respect to any particular Note,
every previous Note evidencing all or a portion of the same debt as that
evidenced by such particular Note and, for purposes of this definition, any
Note authenticated and delivered under Section 2.6 of the Indenture in lieu of
a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the
same debt as the mutilated, lost, destroyed or stolen Note.

                                 Appendix A-15
<PAGE>

         "Prepayment Date" shall mean (i) with respect to a prepayment of the
Certificates pursuant to Section 8.2(a) of the Trust Agreement or a
distribution to Certificateholders pursuant to Section 8.1(c) of the Trust
Agreement, the Payment Date specified by the Owner Trustee pursuant to said
Section 8.2(a) or 8.1(c), as applicable, and (ii) with respect to a prepayment
of the Notes pursuant to Section 10.1(a) of the Indenture, the Payment Date
specified by the Servicer pursuant to Section 10.1(a) or (b) of the Indenture,
as applicable.

         "Prepayment Price" shall mean (i) in the case of the Certificates, an
amount equal to the Certificate Balance plus accrued and unpaid interest
thereon at the applicable Class B Rate plus interest on any overdue interest
at the applicable Class B Rate (to the extent lawful) to but excluding the
Prepayment Date and (ii) in the case of a Class of Notes to be prepaid, an
amount equal to the unpaid principal amount of such Class of Notes plus
accrued and unpaid interest thereon at the applicable Note Interest Rate plus
interest on any overdue interest at the applicable Note Interest Rate (to the
extent lawful) to but excluding the Prepayment Date.

         "Priority Note Principal Payment" shall mean, for each Payment Date,
a payment of principal equal to the excess, if any, of the aggregate principal
amount of the Class A Notes (before giving effect to any payments on that
Payment Date) over the Pool Balance at the end of the related Collection
Period.

         "Principal Balance" of a Receivable, as of any date of determination,
shall mean the Amount Financed minus that portion of all payments actually
received on or prior to such date allocable to principal.

         "Principal Distribution Account" shall mean the administrative
sub-account of the Collection Account established and maintained as such
pursuant to Section 4.1(b) of the Sale and Servicing Agreement.

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

         "Prospectus" shall have the meaning specified in the Underwriting
Agreement.

         "Prospectus Supplement" shall have the meaning specified in the
Underwriting Agreement.

         "Purchase Amount" with respect to a Purchased Receivable shall mean
the sum, as of the last day of the related Collection Period, of the Principal
Balance thereof plus the accrued interest thereon at the weighted average of
the Note Interest Rates and the Class B Rate through the end of the related
Collection Period.

         "Purchased Receivable" shall mean a Receivable purchased as of the
close of business on the last day of the respective Collection Period by the
Servicer pursuant to Section 3.7 of the Sale and Servicing Agreement, by the
Seller pursuant to Section 2.4 of the Sale and Servicing Agreement or by the
Servicer pursuant to Section 8.1 of the Sale and Servicing Agreement.

         "Rating Agency" shall mean each of the nationally recognized
statistical rating organizations designated by the Depositor to provide a
rating on the Notes or the Certificates

                                 Appendix A-16
<PAGE>

which is then rating such Notes or Certificates. If no such organization or
successor is any longer in existence, "Rating Agency" shall be a nationally
recognized statistical rating organization or other comparable Person
designated by the Depositor, notice of which designation shall be given
to the Indenture Trustee, the Owner Trustee and the Servicer.

         "Rating Agency Condition" shall mean, with respect to any action,
that each of the Rating Agencies shall have notified the Servicer, the
Depositor, the Owner Trustee and the Indenture Trustee in writing that such
action will not result in a reduction or withdrawal of the then current
ratings of the Notes or the Certificates.

         "Realized Losses" shall mean, for any Collection Period and for each
Receivable that became a Defaulted Receivable during such Collection Period,
the excess, for each such Receivable, of (i) the Principal Balance of such
Receivable over (ii) Liquidation Proceeds received with respect to such
Receivable during such Collection Period, to the extent allocable to
principal.

         "Receivable" shall mean a motor vehicle installment loan contract
listed on Schedule A to the Receivables Purchase Agreement and all proceeds
thereof and payments thereunder, which Receivable shall not have been released
by the Indenture Trustee and the Owner Trustee from the Trust.

         "Receivable Files" shall mean the documents specified in Section 2.4
of the Sale and Servicing Agreement.

         "Receivables Purchase Agreement" shall mean the Receivables Purchase
Agreement, dated as of February 1, 2004, by and between the Bank, as seller,
and the Depositor, as purchaser.

         "Record Date" shall mean, with respect to any Payment Date or
Prepayment Date and any Book-Entry Security, the close of business on the day
prior to such Payment Date or Prepayment Date or, with respect to any
Definitive Note or Definitive Certificate, the last day of the month preceding
the month in which such Payment Date or Prepayment Date occurs.

         "Recoveries" shall mean, with respect to any Collection Period, all
amounts received by the Servicer with respect to any Defaulted Receivable
during any Collection Period following the Collection Period in which such
Receivable became a Defaulted Receivable, net of any fees, costs and expenses
incurred by the Servicer in connection with the collection of such Receivable
and any payments required by law to be remitted to the Obligor.

         "Registered Noteholder" shall mean the Person in whose name a Note is
registered on the Note Register on the applicable Record Date.

         "Registration Statement" shall mean Registration Statement No.
333-112241 filed by the Depositor with the Securities and Exchange Commission
in the form in which it became effective on February 9, 2004.

         "Regular Principal Distribution Amount" shall mean, with respect to
any Payment Date, an amount equal to the sum of (i) the Collections on the
Receivables received during the related

                                 Appendix A-17
<PAGE>

Collection Period and allocable to principal and (ii) the aggregate
Principal Balance (net of Liquidation Proceeds received during the related
Collection Period applied to principal) of all Receivables that became
designated as Defaulted Receivables in such Collection Period; provided,
however, that the Regular Principal Distribution Amount shall not exceed the
sum of the aggregate outstanding principal amount of all of the Notes and the
Certificate Balance on such Payment Date.

         "Related Agreements" shall have the meaning specified in the recitals
to the Administration Agreement.

         "Representatives" shall mean Banc of America Securities LLC and
Citigroup Global Markets Inc., as representatives of the several Underwriters.

         "Repurchase Event" shall have the meaning specified in Section 7.02
of the Receivables Purchase Agreement.

         "Required Rating" shall mean a rating on (i) short-term unsecured
debt obligations of "Prime-1" by Moody's and (ii) short-term unsecured debt
obligations of "A-1+" by Standard & Poor's; and any requirement that
short-term unsecured debt obligations have the "Required Rating" shall mean
that such short-term unsecured debt obligations have the foregoing required
ratings from each of such Rating Agencies.

         "Reserve Account" shall mean the account established and maintained
as such pursuant to Section 4.7(a) of the Sale and Servicing Agreement.

         "Reserve Account Property" shall have the meaning specified in
Section 4.7(a) of the Sale and Servicing Agreement.

         "Reserve Account Excess Amount" shall mean, with respect to any
Payment Date, an amount equal to the excess, if any, of (i) the amount of cash
or other immediately available funds in the Reserve Account on such Payment
Date (prior to giving effect to any withdrawals therefrom relating to such
Payment Date) over (ii) the Specified Reserve Balance with respect to such
Payment Date.

         "Reserve Initial Deposit" shall mean, $9,500,000.75.

         "Sale and Servicing Agreement" shall mean the Sale and Servicing
Agreement, dated as of February 1, 2004, by and between the Trust, as issuer,
the Depositor, and the Bank, as seller and servicer.

         "Schedule of Receivables" shall mean the list of Receivables attached
as Schedule A to the Receivables Purchase Agreement, the Sale and Servicing
Agreement and the Indenture (which Schedules may be in the form of microfiche,
disk or other means acceptable to the Indenture Trustee).

         "Scheduled Payment" shall mean, for any Collection Period for any
Receivable, the amount indicated in such Receivable as required to be paid by
the Obligor in such Collection

                                 Appendix A-18
<PAGE>

Period (without giving effect to deferments of payments pursuant to Section
3.2 of the Sale and Servicing Agreement or any rescheduling in any insolvency
or similar proceedings).

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

         "Securities" shall mean the Notes and the Certificates, collectively.

         "Securities Act" shall mean the Securities Act of 1933, as amended.

         "Securityholders" shall mean the Noteholders and the
Certificateholders, collectively.

         "Seller" shall mean the Bank as the seller of the Receivables under
the Receivables Purchase Agreement and each successor to the Bank.

         "Servicer" shall mean the Bank as the servicer of the Receivables
under the Sale and Servicing Agreement, and each successor to the Bank (in the
same capacity) pursuant to Section 6.3 of the Sale and Servicing Agreement.

         "Servicer's Certificate" shall mean a certificate completed and
executed by the Servicer by the chairman of the board, the president, any
executive vice president, any vice president, the treasurer, any assistant
treasurer, the controller, or any assistant controller of the Servicer
pursuant to Section 3.9 of the Sale and Servicing Agreement.

         "Servicing Fee" shall mean, with respect to a 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 Pool Balance as of the first day of the Collection Period;
provided that the Servicing Fee for the first Collection Period shall equal
one-sixth of the Servicing Fee Rate multiplied by the Initial Pool Balance.

         "Servicing Fee Rate" shall mean 1.00% per annum.

         "Simple Interest Method" shall mean the method of allocating a fixed
level payment to principal and interest, pursuant to which the portion of such
payment that is allocated to interest is equal to the amount accrued from the
date of the preceding payment to the date of the current payment.

         "Specified Reserve Balance" shall mean for a Payment Date the lesser
of (a) $9,500,000.75 (0.50% of the principal balance of the Receivables as of
the Cut-off Date) and (b) the sum of the aggregate principal balance of the
Outstanding Notes and the principal balance of the Certificates as of the
current Payment Date. However, the Specified Reserve Balance will be
calculated using a percentage of 0.75% in (a) above for any Payment Date for
which the Average Net Loss Ratio exceeds 1.25% or the Average Delinquency
Ratio exceeds 1.25% (the "specified trigger level"). Also, that higher
percentage will remain in effect until each of the Average Net Loss Ratio and
the Average Delinquency Ratio is equal to or less than 1.25% for at least six
consecutive Payment Dates. In no event will the Specified Reserve Balance for
any Payment Date exceed the aggregate Outstanding principal balance of the
Receivables at the end of the related Collection Period. The Specified Reserve
Balance may be reduced to a lesser amount as determined by the Depositor, if
each of Moody's and Standard & Poor's shall have

                                 Appendix A-19
<PAGE>

confirmed in writing to the Indenture Trustee that such action will
not result in a withdrawal or reduction in any of its ratings of the
Securities.

         "Standard & Poor's" shall mean Standard & Poor's Ratings Services, a
division of The McGraw-Hill Companies, Inc.

         "State" shall mean any state or commonwealth of the United States of
America, or the District of Columbia.

         "Statutory Trust Statute" shall mean Chapter 38 of Title 12 of the
Delaware Code, 12 Delaware Code ss. 3801 et seq., as amended.

         "Successor Servicer" shall mean an institution appointed as successor
Servicer pursuant to Section 7.2 of the Sale and Servicing Agreement.

         "Supplemental Servicing Fee" shall mean the fee payable to the
Servicer for certain services rendered during the respective Collection
Period, determined pursuant to and defined in Section 3.8 of the Sale and
Servicing Agreement.

         "Total Required Payment" shall mean, with respect to any Payment
Date, the sum of the Servicing Fee and all unpaid Servicing Fees from prior
Collection Periods, the Accrued Class A Note Interest, the Accrued Class B
Certificate Interest and the Regular Principal Distribution Amount; provided,
however, that on any Final Scheduled Payment Date the amount required to be
paid pursuant to Section 4.6(c)(vi) of the Sale and Servicing Agreement shall
be included in the Total Required Payment; provided, further, that following
the occurrence and during the continuation of an Event of Default, on any
Payment Date until the Payment Date on which the outstanding principal amount
of all the Securities has been paid in full, the Total Required Payment shall
mean the sum of the fees, expenses and indemnification of the Indenture
Trustee and the Owner Trustee, the Servicing Fee and all unpaid Servicing Fees
from prior Collection Periods, the Accrued Class A Note Interest, the Accrued
Class B Certificate Interest and the amount necessary to reduce the
outstanding principal amount of all the Securities to zero.

         "Transfer Date" shall mean the Closing Date.

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

         "Trust" shall mean USAA Auto Owner Trust 2004-1, a Delaware statutory
trust governed by the Trust Agreement.

         "Trust Accounts" shall have the meaning specified in Section 4.7(a)
of the Sale and Servicing Agreement.

         "Trust Agreement" shall mean the Amended and Restated Trust Agreement
of the Trust dated as of March 2, 2004, by and between the Depositor and the
Owner Trustee, as amended and/or restated from time to time.

                                 Appendix A-20
<PAGE>

         "Trust Indenture Act" or "TIA" shall mean the Trust Indenture Act of
1939, as amended, unless otherwise specifically provided.

         "Trust Property" shall mean, collectively, (i) the Receivables; (ii)
monies received thereunder on or after the Cut-off Date; (iii) the security
interests in the Financed Vehicles granted by Obligors pursuant to the
Receivables and any other interest of the Issuer in the Financed Vehicles;
(iv) rights to receive proceeds with respect to the Receivables from claims on
any theft, physical damage, credit life, credit disability, or other insurance
policies covering Financed Vehicles or Obligors; (v) all of the Seller's
rights to the Receivable Files; (vi) the Trust Accounts and all amounts,
securities, investments, investment property and other property deposited in
or credited to any of the foregoing, all security entitlements relating to the
foregoing and all proceeds thereof; (vii) payments and proceeds with respect
to the Receivables held by the Servicer; (viii) all property (including the
right to receive Liquidation Proceeds) securing a Receivable (other than a
Receivable repurchased by the Servicer or purchased by the Seller); (ix)
rebates of premiums and other amounts relating to insurance policies and other
items financed under the Receivables in effect as of the Cut-off Date; and (x)
all present and future claims, demands, causes of action 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 or all of the
foregoing, including all proceeds of the conversion thereof, voluntary or
involuntary, into cash or other liquid property, all cash proceeds, accounts,
accounts receivable, 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,
instruments and other property which at any time constitute all or part of or
are included in the proceeds of any of the foregoing.

         "Trustee Officer" shall mean, with respect to the Indenture Trustee,
any officer within the Corporate Trust Office of the Indenture Trustee and
also, with respect to a particular matter, any other officer to whom such
matter is referred because of such officer's knowledge of and familiarity with
the particular subject, in each case having direct responsibility for the
administration of the Indenture and the other Basic Documents on behalf of the
Indenture Trustee and, with respect to the Owner Trustee, any officer within
the Corporate Trust Office of the Owner Trustee with direct responsibility for
the administration of the Trust Agreement and the other Basic Documents on
behalf of the Owner Trustee.

         "UCC" shall mean the Uniform Commercial Code as in effect in any
relevant jurisdiction.

         "Underwriters" shall mean the underwriters named in Schedule I to the
Underwriting Agreement.

         "Underwriting Agreement" shall mean the Underwriting Agreement, dated
February 23, 2004 among the Seller, the Depositor and the Representatives.

         "Underwritten Securities" shall mean the Notes.

                                Appendix A-21

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