Document:

<PAGE>
                                                                    EXHIBIT 4.4

                         NOTE GUARANTY INSURANCE POLICY

                                                          POLICY NUMBER:  42686

INSURED OBLIGATIONS:  $932,000,000

                Triad Automobile Receivables Trust 2003-B
                $193,000,000 Class A-1 1.13% Asset Backed Notes
                $280,000,000 Class A-2 1.66% Asset Backed Notes
                $210,000,000 Class A-3 2.48% Asset Backed Notes
                $249,000,000 Class A-4 3.20% Asset Backed Notes

        MBIA Insurance Corporation (the "Insurer"), in consideration of the
payment of the premium and subject to the terms of this Note Guaranty Insurance
Policy (this "Policy"), hereby unconditionally and irrevocably guarantees to any
Holder that an amount equal to each full and complete Insured Payment will be
received from the Insurer by JPMorgan Chase Bank, or its successors, as
Indenture Trustee for the Holders (the "Indenture Trustee"), on behalf of the
Holders, for distribution by the Indenture Trustee to each Holder of each
Holder's proportionate share of the Insured Payment. The Insurer's obligations
hereunder with respect to a particular Insured Payment shall be discharged to
the extent funds equal to the applicable Insured Payment are received by the
Indenture Trustee, whether or not such funds are properly applied by the
Indenture Trustee. Insured Payments shall be made only at the time set forth in
this Policy, and no accelerated Insured Payments shall be made regardless of any
acceleration of the Insured Obligations, unless such acceleration is at the sole
option of the Insurer.

        Notwithstanding the foregoing paragraph, this Policy does not cover any
shortfalls, if any, attributable to the liability of the Issuer or the Indenture
Trustee for withholding taxes, if any (including interest and penalties in
respect of any such liability).

        The Insurer will pay any Insured Payment that is a Preference Amount on
the Business Day following receipt on a Business Day by the Fiscal Agent (as
described below) of (a) a certified copy of the order requiring the return of a
preference payment, (b) an opinion of counsel satisfactory to the Insurer that
such order is final and not subject to appeal, (c) an assignment in such form as
is reasonably required by the Insurer, irrevocably assigning to the Insurer all
rights and claims of the Holder relating to or arising under the Insured
Obligations against the debtor which made such preference payment or otherwise
with respect to such preference payment and (d) appropriate instruments to
effect the appointment of the Insurer as agent for such Holder in any legal
proceeding related to such preference payment, such instruments being in a form
satisfactory to the Insurer, provided that if such documents are received after
12:00 noon, New York City time, on such Business Day, they will be deemed to be
received on the following Business Day. Such payments shall be disbursed to the
receiver or trustee in bankruptcy named in the final order of the court
exercising jurisdiction on behalf of the Holder and not to any Holder directly
unless such Holder has returned principal or interest paid on the Insured
Obligations to such receiver or trustee in bankruptcy, in which case such
payment shall be disbursed to such Holder.

<PAGE>

        The Insurer will pay any other amount payable hereunder no later than
12:00 noon, New York City time, on the later of the Distribution Date on which
the related Policy Claim Amount is due or the second Business Day following
receipt in New York, New York on a Business Day by U.S. Bank Trust National
Association, as Fiscal Agent for the Insurer, or any successor fiscal agent
appointed by the Insurer (the "Fiscal Agent"), of a Notice (as described below),
provided that if such Notice is received after 12:00 noon, New York City time,
on such Business Day, it will be deemed to be received on the following Business
Day. If any such Notice received by the Fiscal Agent is not in proper form or is
otherwise insufficient for the purpose of making a claim hereunder, it shall be
deemed not to have been received by the Fiscal Agent for purposes of this
paragraph, and the Insurer or the Fiscal Agent, as the case may be, shall
promptly so advise the Indenture Trustee and the Indenture Trustee may submit an
amended Notice.

        Insured Payments due hereunder, unless otherwise stated herein, will be
disbursed by the Fiscal Agent to the Indenture Trustee on behalf of the Holders
by wire transfer of immediately available funds in the amount of the Insured
Payment less, in respect of Insured Payments related to Preference Amounts, any
amount held by the Indenture Trustee for the payment of such Insured Payment and
legally available therefor.

        The Fiscal Agent is the agent of the Insurer only, and the Fiscal Agent
shall in no event be liable to Holders for any acts of the Fiscal Agent or any
failure of the Insurer to deposit, or cause to be deposited, sufficient funds to
make payments due under this Policy.

        Subject to the terms of the Agreement, the Insurer shall be subrogated
to the rights of each Holder to receive payments under the Insured Obligations
to the extent of any payment by the Insurer hereunder.

        As used herein, the following terms shall have the following meanings:

        "Agreement" means the Indenture dated as of October 1, 2003 between
Triad Automobile Receivables Trust 2003-B, as Issuer and JPMorgan Chase Bank, as
Indenture Trustee, and the Sale and Servicing Agreement dated as of October 1,
2003 among Triad Automobile Receivables Trust 2003-B, as Issuer, Triad Financial
Special Purpose LLC, as Depositor, Triad Financial Corporation, as Servicer and
Custodian, and JPMorgan Chase Bank, as Indenture Trustee and Backup Servicer,
without regard to any amendment or supplement thereto, unless such amendment or
supplement has been approved in writing by the Insurer.

        "Business Day" means a day other than a Saturday, a Sunday or other day
on which commercial banks located in the states of Delaware, California, or New
York are authorized or obligated to be closed.

        "Holder" shall mean any registered owner of an Insured Obligation (other
than the Issuer, the Depositor, the Servicer, and any of their respective
Affiliates).

         "Insured Payment" means (a) as of any Distribution Date, any Policy
Claim Amount and (b) any Preference Amount; provided, however, that in no event
shall the aggregate amount payable by the Insurer under this Policy exceed the
Maximum Insured Amount.

                                       2
<PAGE>

        "Maximum Insured Amount" shall mean $932,000,000 in respect of
principal, plus interest thereon calculated at the applicable Interest Rate for
the Insured Obligations.

        "Notice" means the telephonic or telegraphic notice, promptly confirmed
in writing by facsimile substantially in the form of Exhibit A attached hereto,
the original of which is subsequently delivered by registered or certified mail,
from the Indenture Trustee specifying the Insured Payment which shall be due and
owing on the applicable Distribution Date.

        "Policy Claim Amount" means, with respect to each Distribution Date,
the excess, if any, without duplication, of (a) the Scheduled Payments minus (b)
the sum of, without duplication: (w) all amounts of Available Funds for the
related Collection Period, (x) Additional Funds Available, if any, for such
Distribution Date, (y) all other funds on deposit in the Collection Account, the
Lockbox Account, the Spread Account and any other Trust Accounts available for
payment of Scheduled Payments on the Insured Obligations on such Distribution
Date and (z) any other amounts available pursuant to the Basic Documents to pay
the Scheduled Payments on such Distribution Date, in each case to the extent
available in accordance with the priorities set forth in the Agreement.

       "Preference Amount" means any amount previously distributed to a Holder
on the Insured Obligations that is recoverable and sought to be recovered as a
voidable preference by a trustee in bankruptcy pursuant to the United States
Bankruptcy Code (11 U.S.C.), as amended from time to time in accordance with a
final nonappealable order of a court having competent jurisdiction.

       "Scheduled Payments" shall mean, with respect to any Distribution Date,
an amount equal to the sum of (a) the Class A Noteholders' Interest
Distributable Amount and the Class A Noteholders' Parity Deficit Amount for the
related Distribution Date and, without duplication, (b) if the related
Distribution Date is the Final Scheduled Distribution Date for any class of
Insured Obligations, the outstanding principal amount of such Class on such date
after application of all funds available to pay principal amounts on such Class
of Insured Obligations from all sources other than the Policy.

       Capitalized terms used herein and not otherwise defined herein shall
have the respective meanings set forth in the Agreement as of the date of
execution of this Policy, without giving effect to any subsequent amendment to
or modification of the Agreement unless such amendment or modification has been
approved in writing by the Insurer.

       Any notice hereunder or service of process on the Fiscal Agent may be
made at the address listed below for the Fiscal Agent or such other address as
the Insurer shall specify in writing to the Indenture Trustee.

       The notice address of the Fiscal Agent is 15th Floor, 61 Broadway, New
York, New York 10006, Attention: Municipal Registrar and Paying Agency, or such
other address as the Fiscal Agent shall specify to the Indenture Trustee in
writing.

       THIS POLICY IS BEING ISSUED UNDER AND PURSUANT TO, AND SHALL BE
CONSTRUED UNDER, THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE
CONFLICT OF LAWS PRINCIPLES THEREOF.

                                       3
<PAGE>

       The insurance provided by this Policy is not covered by the
Property/Casualty Insurance Security Fund specified in Article 76 of the New
York Insurance Law.

       This Policy is not cancelable for any reason. The premium on this Policy
is not refundable for any reason, including payment, or provision being made for
payment, prior to maturity of the Insured Obligations.

       No defenses, set-offs and counterclaims of any kind available to the
Insurer so as to deny payment of any amount due in respect of this Policy will
be valid and the Insurer hereby waives and agrees not to assert any and all such
defenses, set-offs and counterclaims so as to deny payment of any amount due in
respect of this Policy, including without limitation, any such rights acquired
by subrogation, assignment or otherwise.

                                       4
<PAGE>

       IN WITNESS WHEREOF, the Insurer has caused this Policy to be executed
and attested this 29th day of October 2003.

                                               MBIA INSURANCE CORPORATION

                                               By
                                                  -----------------------------
                                                   President

                                               Attest:

                                               By
                                                  -----------------------------
                                                   Assistant Secretary

                                       5
<PAGE>

                                    EXHIBIT A

                           TO NOTE GUARANTY INSURANCE
                              POLICY NUMBER: 42686

                           NOTICE UNDER NOTE GUARANTY
                         INSURANCE POLICY NUMBER: 42686

U.S. Bank Trust National Association, as Fiscal Agent
    for MBIA Insurance Corporation
15th Floor
61 Broadway
New York, NY  10006
Attention:  Municipal Registrar and
    Paying Agency

MBIA Insurance Corporation
113 King Street
Armonk, NY  10504

The undersigned, a duly authorized officer of [NAME OF INDENTURE TRUSTEE], as
Indenture Trustee (the "Indenture Trustee"), hereby certifies to U.S. Bank Trust
National Association (the "Fiscal Agent") and MBIA Insurance Corporation (the
"Insurer"), with reference to Note Guaranty Insurance Policy Number: 42686 (the
"Policy") issued by the Insurer in respect of the $932,000,000 Triad Automobile
Receivables Trust 2003-B $193,000,000 Class A-1 1.13% Asset Backed Notes,
$280,000,000 Class A-2 1.66% Asset Backed Notes, $210,000,000 Class A-3 2.48%
Asset Backed Notes, and $249,000,000 Class A-4 3.20% Asset Backed Notes (the
"Insured Obligations"), that:

                (a) the Indenture Trustee is the Indenture Trustee under the
        Indenture dated as of October 1, 2003 among Triad Automobile Receivables
        Trust 2003-B, as Issuer and JPMorgan Chase Bank, as Indenture Trustee;

                (b) the Policy Claim Amount for the Distribution Date occurring
        on [      ] (the "Applicable Distribution Date") is $[      ] (the
        "Policy Claim Amount");

                (c) the amount of previously distributed payments on the Insured
        Obligations that is recoverable and sought to be recovered as a voidable
        preference by a trustee in bankruptcy pursuant to the Bankruptcy Code in
        accordance with a final nonappealable order of a court having competent
        jurisdiction is $[       ] (the "Preference Amount");

                (d) the total Insured Payment due is $[       ], which amount
        equals the sum of the Policy Claim Amount and the Preference Amount;

<PAGE>

                (e) the Indenture Trustee is making a claim under and pursuant
        to the terms of the Policy for the dollar amount of the Insured Payment
        set forth in (b) above to be applied to the payment of the Policy Claim
        Amount for the Applicable Distribution Date in accordance with the
        Agreement and for the dollar amount of the Insured Payment set forth in
        (c) above to be applied to the payment of any Preference Amount; and

                (f) the Indenture Trustee directs that payment of the Insured
        Payment be made to the following account by bank wire transfer of
        federal or other immediately available funds in accordance with the
        terms of the Policy: [INDENTURE TRUSTEE'S ACCOUNT NUMBER].

        Any capitalized term used in this Notice and not otherwise defined
herein shall have the meaning assigned thereto in the Policy.

        Any Person Who Knowingly And With Intent To Defraud Any Insurance
Company Or Other Person Files An Application For Insurance Or Statement Of Claim
Containing Any Materially False Information, Or Conceals For The Purpose Of
Misleading, Information Concerning Any Fact Material Thereto, Commits A
Fraudulent Insurance Act, Which Is A Crime, And Shall Also Be Subject To A Civil
Penalty Not To Exceed Five Thousand Dollars And The Stated Value Of The Claim
For Each Such Violation.

        IN WITNESS WHEREOF, the Indenture Trustee has executed and delivered
this Notice under the Policy as of the [   ] day of [       ], [    ].

                                                   [NAME OF INDENTURE TRUSTEE],
                                                   as Indenture Trustee

                                                   By
                                                     --------------------------
                                                   Title
                                                        -----------------------

                                      A-2<PAGE>
                                                                    EXHIBIT 10.1

                                                                  EXECUTION COPY

                               PURCHASE AGREEMENT

                                     BETWEEN

                           TRIAD FINANCIAL CORPORATION
                                   ORIGINATOR

                                       AND

                       TRIAD FINANCIAL SPECIAL PURPOSE LLC
                                    DEPOSITOR

                           DATED AS OF OCTOBER 1, 2003

<PAGE>

                               TABLE OF CONTENTS

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

     SECTION 1.1           General.............................................................................    1
     SECTION 1.2           Specific Terms......................................................................    1
     SECTION 1.3           Usage of Terms......................................................................    2
     SECTION 1.4           [Reserved]..........................................................................    2
     SECTION 1.5           No Recourse.........................................................................    2
     SECTION 1.6           Action by or Consent of Noteholders and Certificateholder...........................    3
     SECTION 1.7           Material Adverse Effect.............................................................    3

ARTICLE II.                CONVEYANCE OF THE RECEIVABLES  AND THE OTHER CONVEYED PROPERTY......................    3

     SECTION 2.1           Conveyance of the Receivables and the Other Conveyed Property.......................    3

ARTICLE III.               REPRESENTATIONS AND WARRANTIES......................................................    4

     SECTION 3.1           Representations and Warranties of Originator........................................    4
     SECTION 3.2           Representations and Warranties of Depositor.........................................    5

ARTICLE IV.                COVENANTS OF SELLER.................................................................    7

     SECTION 4.1           Protection of Title of Depositor....................................................    7
     SECTION 4.2           Reserved............................................................................    8
     SECTION 4.3           Other Liens or Interests............................................................    8
     SECTION 4.4           Costs and Expenses..................................................................    9
     SECTION 4.5           Indemnification by Originator.......................................................    9
     SECTION 4.6           Indemnification by the Depositor....................................................    9

ARTICLE V.                 REPURCHASES.........................................................................   10

     SECTION 5.1           Repurchase of Receivables Upon Breach of Warranty...................................   10
     SECTION 5.2           Reassignment of Purchased Receivables...............................................   10
     SECTION 5.3           Waivers.............................................................................   11

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

     SECTION 6.1           Liability of Originator and Depositor...............................................   11
     SECTION 6.2           Merger or Consolidation of Originator or Depositor..................................   11
     SECTION 6.3           Limitation on Liability of Originator, and Depositor and Others.....................   12
     SECTION 6.4           Originator May Own Notes or the Certificate.........................................   12
     SECTION 6.5           Amendment...........................................................................   12
     SECTION 6.6           Notices.............................................................................   13
</TABLE>

                                       i

<PAGE>

<TABLE>
<S>                                                                                                            <C>
SECTION 6.7           Merger and Integration.............................................................      14
SECTION 6.8           Severability of Provisions.........................................................      14
SECTION 6.9           Intention of the Parties...........................................................      14
SECTION 6.10          Governing Law......................................................................      15
SECTION 6.11          Counterparts.......................................................................      15
SECTION 6.12          Conveyance of the  Receivables  and the Other  Conveyed  Property to the Issuer....      15
SECTION 6.13          Nonpetition Covenant...............................................................      15
</TABLE>

SCHEDULES

Schedule A -- Schedule of Receivables

Schedule B -- Representations and Warranties from Originator as to the
              Receivables

                                       ii
<PAGE>

                               PURCHASE AGREEMENT

                  THIS PURCHASE AGREEMENT, dated as of October 1, 2003, is
between Triad Financial Corporation, a California corporation, as Originator
("Originator"), and Triad Financial Special Purpose LLC, a Delaware limited
liability company, as Depositor ("Depositor").

                  Depositor has agreed to purchase from the Originator, and the
Originator, pursuant to this Agreement, is selling to Depositor the Receivables
and Other Conveyed Property.

                  In consideration of the premises and the mutual agreements
hereinafter contained, and for other good and valuable consideration, the
receipt of which is acknowledged, the Originator and the Depositor, intending to
be legally bound, hereby agree as follows:

                                   ARTICLE I.

                                  DEFINITIONS

                  SECTION 1.1 General. Capitalized terms used herein without
definition will have the respective meanings assigned to such terms in the Sale
and Servicing Agreement dated as of October 1, 2003, by and among the Depositor,
Triad Financial Corporation, in its individual capacity, as Custodian and as
Servicer, Triad Automobile Receivables Trust 2003-B, as Issuer, and JPMorgan
Chase Bank, as Backup Servicer and Indenture Trustee.

                  SECTION 1.2 Specific Terms. Whenever used in this Agreement,
the following words and phrases, unless the context otherwise requires, will
have the following meanings:

                  "Agreement" means this Purchase Agreement and all amendments
hereof and supplements hereto.

                  "Closing Date" means October 29, 2003.

                  "Issuer" means Triad Automobile Receivables Trust 2003-B.

                  "Other Conveyed Property" means all property described in
Section 2.1(b), (c), (d), (e), (f) and (h) of the Sale and Servicing Agreement
conveyed by the Originator to the Depositor pursuant to this Agreement other
than the Receivables, including all monies paid on or after the Cut-Off Date.

                  "Owner Trustee" means Wilmington Trust Company, as Owner
Trustee appointed and acting pursuant to the Trust Agreement.

                  "Receivables" means the Receivables listed on the Schedule of
Receivables attached hereto.

                  "Related Documents" means the Notes, the Certificate, the Sale
and Servicing Agreement, the Indenture, the Trust Agreement, the Policy, the
Insurance Agreement, and the

<PAGE>

Underwriting Agreement. The Related Documents to be executed by any party are
referred to herein as "such party's Related Documents," "its Related Documents"
or by a similar expression.

                  "Repurchase Event" means the occurrence of a breach of any of
the Originator's representations and warranties hereunder including the
representations and warranties set forth in Schedule B or any other event which
requires the repurchase of a Receivable by the Originator under the Sale and
Servicing Agreement.

                  "Sale and Servicing Agreement" means the Sale and Servicing
Agreement referred to in Section 1.1.

                  "Schedule of Representations" means the Schedule of
Representations and Warranties attached hereto as Schedule B.

                  "Schedule of Receivables" means the schedule of Receivables
sold and transferred pursuant to this Agreement which is attached hereto as
Schedule A.

                  "Taxes" means any sales, gross receipts, personal property,
tangible or intangible personal property, privilege or license taxes (but not
including any (x) federal, state or other taxes, arising out of the ownership of
the Notes or the Certificate, (y) transfer taxes arising in connection with the
transfer of the Notes or the Certificate or (z) federal, state or other taxes
arising out of any fees paid to the indemnified parties pursuant to the Basic
Documents).

                  "Trustee" means JPMorgan Chase Bank, as trustee and any
successor trustee appointed and acting pursuant to the Indenture.

                  SECTION 1.3 Usage of Terms. With respect to all terms used in
this Agreement, the singular includes the plural and the plural the singular;
words importing any gender include the other gender; references to "writing"
include printing, typing, lithography, and other means of reproducing words in a
visible form; references to agreements and other contractual instruments include
all subsequent amendments thereto or changes therein entered into in accordance
with their respective terms and not prohibited by this Agreement or the Sale and
Servicing Agreement; references to Persons include their permitted successors
and assigns; and the terms "include" or "including" mean "include without
limitation" or "including without limitation." The words "herein," "hereof" and
"hereunder" and other words of similar import refer to this Agreement as a whole
and not to any particular Article, Section or other subdivision, and Article,
Section, Schedule and Exhibit references, unless otherwise specified, refer to
Articles and Sections of and Schedules and Exhibits to this Agreement.

                  SECTION 1.4 [Reserved].

                  SECTION 1.5 No Recourse. Without limiting the obligations of
the Originator or the Depositor hereunder, no recourse may be taken, directly or
indirectly, under this Agreement or any certificate or other writing delivered
in connection herewith or therewith, against any stockholder, officer or
director, as such, of the Originator or the Depositor, or of any predecessor or
successor of the Originator or the Depositor.

                                       2

<PAGE>

                  SECTION 1.6 Action by or Consent of Noteholders and
Certificateholder. Whenever any provision of this Agreement refers to action to
be taken, or consented to, by Noteholders or the Certificateholder, such
provision will be deemed to refer to the Certificateholder or Noteholder, as the
case may be, of record as of the Record Date immediately preceding the date on
which such action is to be taken, or consent given, by Noteholders or the
Certificateholder. Solely for the purposes of any action to be taken, or
consented to, by Noteholders, any Note registered in the name of the Depositor,
the Originator or any Affiliate thereof will be deemed not to be outstanding;
provided, however, that, solely for the purpose of determining whether the Owner
Trustee or the Indenture Trustee is entitled to rely upon any such action or
consent, only Notes or Certificates that the Owner Trustee or the Indenture
Trustee, respectively, knows to be so owned will be so disregarded.

                  SECTION 1.7 Material Adverse Effect. Whenever a determination
is to be made under this Agreement as to whether a given event, action, course
of conduct or set of facts or circumstances could or would have a material
adverse effect on the Noteholders or the Insurer (or any similar or analogous
determination), such determination will be made without taking into account the
funds available from claims under the Policy.

                                  ARTICLE II.

                          CONVEYANCE OF THE RECEIVABLES
                         AND THE OTHER CONVEYED PROPERTY

                  SECTION 2.1 Conveyance of the Receivables and the Other
Conveyed Property.

                  (a)      Subject to the terms and conditions of this
         Agreement, Originator hereby sells, transfers, assigns and otherwise
         conveys to Depositor without recourse (but without limitation of its
         obligations in this Agreement), and Depositor hereby purchases, all
         right, title and interest of Originator in and to the Receivables and
         the Other Conveyed Property, including collections paid on or after the
         Cutoff Date. It is the intention of Originator and Depositor that the
         sale and assignment contemplated by this Agreement constitutes a sale
         and contribution of the Receivables and the Other Conveyed Property
         from Originator to Depositor, conveying good title thereto free and
         clear of any liens, and the beneficial interest in and title to the
         Receivables and the Other Conveyed Property will not be part of
         Originator's estate in the event of the filing of a bankruptcy petition
         by or against Originator under any bankruptcy or similar law.

                  (b)      Simultaneously with the sale of the Receivables and
         the Other Conveyed Property to Depositor, Depositor has paid or caused
         to be paid to or upon the order of Originator an amount equal to net
         proceeds of the Class A Notes (less the initial deposit to the Spread
         Account) by wire transfer of immediately available funds and the
         remainder shall constitute a contribution to the capital by the
         Originator to the Depositor (a wholly-owned subsidiary of Originator).

                                       3

<PAGE>

                                  ARTICLE III.

                         REPRESENTATIONS AND WARRANTIES

                  SECTION 3.1 Representations and Warranties of Originator.
Originator makes the following representations and warranties as of the date
hereof, on which Depositor relies in purchasing the Receivables and the Other
Conveyed Property, on which the Issuer will rely in purchasing the Receivables
and the Other Conveyed Property and on which the Insurer will rely in issuing
the Policy. Such representations are made as of the execution and delivery of
this Agreement, but will survive the sale, transfer and assignment of the
Receivables and the Other Conveyed Property hereunder, and the sale, transfer
and assignment thereof by Depositor to the Issuer. Originator and Depositor
agree that Depositor will assign to Issuer all Depositor's rights under this
Agreement and that the Indenture Trustee will thereafter be entitled to enforce
this Agreement against Originator in the Indenture Trustee's own name on behalf
of the Noteholders.

                  (a)      Schedule of Representations. The representations and
         warranties set forth on the Schedule of Representations with respect to
         the Receivables as of the date hereof, are true and correct.

                  (b)      Organization and Good Standing. Originator has been
         duly organized and is validly existing as a corporation in good
         standing under the laws of the State of California, with power and
         authority to own its properties and to conduct its business as such
         properties are currently owned and such business is currently
         conducted, and had at all relevant times, and now has, power, authority
         and legal right to acquire, own, transfer and sell the Receivables and
         the Other Conveyed Property to be transferred to Depositor.

                  (c)      Due Qualification. Originator is duly qualified to do
         business as a foreign corporation in good standing, and has obtained
         all necessary licenses and approvals in all jurisdictions in which the
         ownership or lease of its property or the conduct of its business with
         respect to the Receivables requires such qualification.

                  (d)      Power and Authority. Originator has the power and
         authority to execute and deliver this Agreement and its Related
         Documents and to carry out its terms and their terms, respectively;
         Originator has full power and authority to sell and assign the
         Receivables and the Other Conveyed Property to be sold and assigned to
         Depositor hereunder and has duly authorized such sale and assignment to
         Depositor by all necessary corporate action; and the execution,
         delivery and performance of this Agreement and Originator's Related
         Documents have been duly authorized by Originator by all necessary
         corporate action.

                  (e)      Valid Sale; Binding Obligations. This Agreement and
         Originator's Related Documents have been duly executed and delivered,
         will effect a valid sale, transfer and assignment of the Receivables
         and the Other Conveyed Property to the Depositor, enforceable against
         Originator and creditors of and purchasers from Originator; and this
         Agreement and Originator's Related Documents constitute legal, valid
         and binding obligations of Originator enforceable in accordance with
         their

                                       4

<PAGE>

         respective terms, except as enforceability may be limited by
         bankruptcy, insolvency, reorganization or other similar laws affecting
         the enforcement of creditors' rights generally and by equitable
         limitations on the availability of specific remedies, regardless of
         whether such enforceability is considered in a proceeding in equity or
         at law.

                  (f)      No Violation. The consummation of the transactions
         contemplated by this Agreement and the Related Documents, and the
         fulfillment of the terms of this Agreement and the Related Documents,
         will not conflict with, result in any breach of any of the terms and
         provisions of, or constitute (with or without notice, lapse of time or
         both) a default under, the articles of incorporation or bylaws of
         Originator, or any indenture, agreement, mortgage, deed of trust or
         other instrument to which Originator is a party or by which it is
         bound, or result in the creation or imposition of any Lien upon any of
         its properties pursuant to the terms of any such indenture, agreement,
         mortgage, deed of trust or other instrument, other than this Agreement,
         the Sale and Servicing Agreement and the Indenture, or violate any law,
         order, rule or regulation applicable to Originator of any court or of
         any federal or state regulatory body, administrative agency or other
         governmental instrumentality having jurisdiction over Originator or any
         of its properties.

                  (g)      No Proceedings. There are no proceedings or
         investigations pending or, to Originator's knowledge, threatened
         against Originator, before any court, regulatory body, administrative
         agency or other tribunal or governmental instrumentality having
         jurisdiction over Originator or its properties (i) asserting the
         invalidity of this Agreement or any of the Related Documents, (ii)
         seeking to prevent the issuance of the Notes or the consummation of any
         of the transactions contemplated by this Agreement or any of the
         Related Documents, (iii) seeking any determination or ruling that might
         materially and adversely affect the performance by Originator of its
         obligations under, or the validity or enforceability of, this Agreement
         or any of the Related Documents or (iv) seeking to affect adversely the
         federal income tax or other federal, state or local tax
         characterization of, or seeking to impose any excise, franchise,
         transfer or similar tax upon, the transfer and acquisition of the
         Receivables and the Other Conveyed Property hereunder or under the Sale
         and Servicing Agreement.

                  (h)      True Sale. The Receivables are being transferred with
         the intention of removing them from Originator's estate pursuant to
         Section 541 of the Bankruptcy Code, as the same may be amended from
         time to time.

                  SECTION 3.2 Representations and Warranties of Depositor.
Depositor makes the following representations and warranties as of the date
hereof, on which Originator relies in transferring the Receivables and the Other
Conveyed Property to the Depositor, on which the Issuer will rely in purchasing
the Receivables and on which the Insurer will rely in issuing the Policy. Such
representations are made as of the execution and delivery of this Agreement, but
will survive the sale, transfer and assignment of the Receivables and the Other
Conveyed Property hereunder, and the sale, transfer and assignment thereof to
the Issuer under the Sale and Servicing Agreement.

                  (a)      Organization and Good Standing. Depositor has been
         duly organized and is validly existing as a limited liability company
         in good standing under the laws of the

                                       5

<PAGE>

         State of Delaware, with power and authority to own its properties and
         to conduct its business as such properties are currently owned and such
         business is currently conducted, and had at all relevant times, and now
         has, power, authority and legal right to acquire, own and sell the
         Receivables and the Other Conveyed Property to be transferred to the
         Issuer.

                  (b)      Due Qualification. Depositor is duly qualified to do
         business as a foreign limited liability company in good standing, and
         has obtained all necessary licenses and approvals in all jurisdictions
         in which the ownership or lease of its property or the conduct of its
         business requires such qualification.

                  (c)      Power and Authority. Depositor has the power and
         authority to execute and deliver this Agreement and its Related
         Documents and to carry out its terms and their terms, respectively; and
         the execution, delivery and performance of this Agreement and
         Depositor's Related Documents have been duly authorized by Depositor by
         all necessary action.

                  (d)      Valid Sale; Binding Obligations. This Agreement and
         Depositor's Related Documents have been duly executed and delivered,
         and this Agreement and Depositor's Related Documents constitute legal,
         valid and binding obligations of Depositor enforceable in accordance
         with their respective terms, except as enforceability may be limited by
         bankruptcy, insolvency, reorganization or other similar laws affecting
         the enforcement of creditors' rights generally and by equitable
         limitations on the availability of specific remedies, regardless of
         whether such enforceability is considered in a proceeding in equity or
         at law.

                  (e)      No Violation. The consummation of the transactions
         contemplated by this Agreement and the Related Documents, and the
         fulfillment of the terms of this Agreement and the Related Documents,
         will not conflict with, result in any breach of any of the terms and
         provisions of, or constitute (with or without notice, lapse of time or
         both) a default under, the limited liability company agreement of
         Depositor, or any indenture, agreement, mortgage, deed of trust or
         other instrument to which Depositor is a party or by which it is bound,
         or result in the creation or imposition of any Lien upon any of its
         properties pursuant to the terms of any such indenture, agreement,
         mortgage, deed of trust or other instrument, other than this Agreement,
         the Sale and Servicing Agreement and the Indenture, or violate any law,
         order, rule or regulation applicable to Depositor of any court or of
         any federal or state regulatory body, administrative agency or other
         governmental instrumentality having jurisdiction over Depositor or any
         of its properties.

                  (f)      No Proceedings. There are no proceedings or
         investigations pending or, to Depositor's knowledge, threatened against
         Depositor, before any court, regulatory body, administrative agency or
         other tribunal or governmental instrumentality having jurisdiction over
         Depositor or its properties (i) asserting the invalidity of this
         Agreement or any of the Related Documents, (ii) seeking to prevent the
         issuance of the Notes or the consummation of any of the transactions
         contemplated by this Agreement or any of the Related Documents, (iii)
         seeking any determination or ruling that might materially and adversely
         affect the performance by Depositor of its obligations under, or the
         validity or

                                       6

<PAGE>

         enforceability of, this Agreement or any of the Related Documents or
         (iv) seeking to affect adversely the federal income tax or other
         federal, state or local tax characterization of, or seeking to impose
         any excise, franchise, transfer or similar tax upon, the transfer and
         acquisition of the Receivables and the Other Conveyed Property
         hereunder or under the Sale and Servicing Agreement.

                  In the event of any breach of a representation and warranty
made by Depositor hereunder, Originator covenants and agrees that it will not
take any action to pursue any remedy that it may have hereunder, in law, in
equity or otherwise, until a year and a day have passed since the date on which
all notes, certificates, pass-through certificates or other similar securities
issued by Depositor, or a trust or similar vehicle formed by Depositor, have
been paid in full. Originator and Depositor agree that damages will not be an
adequate remedy for such breach and that this covenant may be specifically
enforced by Issuer or by the Indenture Trustee on behalf of the Noteholders and
Owner Trustee on behalf of the Certificateholder.

                                  ARTICLE IV.

                               COVENANTS OF SELLER

                  SECTION 4.1 Protection of Title of Depositor.

                  (a)      At or prior to the Closing Date, Originator will have
         filed or caused to be filed UCC-1 financing statements, (i) naming
         Originator as seller or debtor and naming Depositor as purchaser or
         secured party, (ii) naming Depositor as seller or debtor and the Issuer
         as purchaser or secured party, and (iii) naming Issuer as debtor and
         Indenture Trustee as secured party and describing the Receivables and
         the Other Conveyed Property being transferred as collateral, in such
         locations as are required in order to perfect the transfers and pledges
         thereof under the Related Documents. From time to time thereafter,
         Originator will execute and file such financing statements and cause to
         be executed and filed such continuation statements, all in such manner
         and in such places as may be required by law fully to preserve,
         maintain and protect the interest of Depositor under this Agreement, of
         the Issuer under the Sale and Servicing Agreement and of the Indenture
         Trustee under the Indenture in the Receivables and the Other Conveyed
         Property and in the proceeds thereof. Originator will deliver (or cause
         to be delivered) to Depositor, the Indenture Trustee and the Insurer
         file-stamped copies of, or filing receipts for, any document filed as
         provided above, as soon as available following such filing. In the
         event that Originator fails to perform its obligations under this
         subsection, Depositor, Issuer or the Indenture Trustee may do so, at
         the expense of such Originator. In furtherance of the foregoing, the
         Originator hereby authorizes the Depositor, the Issuer or the Indenture
         Trustee to file a record or records (as defined in the applicable UCC),
         including financing statements, in all jurisdictions and with all
         filing offices as each may determine, in its sole discretion, are
         necessary or advisable to perfect the security interest granted to the
         Depositor pursuant to Section 6.9. Such financing statements may
         describe the collateral in the same manner as described herein or may
         contain an indication or description of collateral that describes such
         property in any other manner as such party may determine, in its sole
         discretion, is necessary, advisable or prudent to ensure the perfection
         of the security interest in the collateral granted to the Depositor
         herein.

                                       7

<PAGE>

                  (b)      Originator will not change its name, identity, state
         of incorporation or corporate structure in any manner that would, could
         or might make any financing statement or continuation statement filed
         by Originator (or by Depositor, Issuer or the Indenture Trustee on
         behalf of Originator) in accordance with Section 4.1(a) seriously
         misleading within the meaning of Section 9-506 of the applicable UCC,
         unless they will have given Depositor, Issuer, Insurer and the
         Indenture Trustee at least 60 days' prior written notice thereof, and
         will promptly file appropriate amendments to all previously filed
         financing statements and continuation statements.

                  (c)      Originator shall at all times maintain each office
         from which it services Receivables and its principal executive office
         within the United States of America.

                  (d)      Prior to the Closing Date, Originator has maintained
         accounts and records as to each Receivable accurately and in sufficient
         detail to permit (i) the reader thereof to know at any time as of or
         prior to the Closing Date, 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 Principal Balance as of the
         Closing Date. Originator will maintain its computer systems so that,
         from and after the time of transfer under this Agreement of the
         Receivables to Depositor and the conveyance of the Receivables by
         Depositor to the Issuer, Originator's master computer records
         (including archives) that will refer to a Receivable indicate clearly
         that such Receivable has been transferred to the Depositor and has been
         conveyed by Depositor to Issuer. Indication of the Issuer's ownership
         of a Receivable will be deleted from or modified on Originator's
         computer systems when, and only when, the Receivable will become a
         Purchased Receivable or will have been paid in full.

                  (e)      If at any time Originator proposes to sell, grant a
         security interest in, or otherwise transfer any interest in any motor
         vehicle receivables to any prospective purchaser, lender or other
         transferee, Originator will give to such prospective purchaser, lender
         or other transferee computer tapes, records or print-outs (including
         any restored from archives) that, if they refer in any manner
         whatsoever to any Receivable (other than a Purchased Receivable), will
         indicate clearly that such Receivable has been sold by the Originator
         and is owned by the Issuer.

                  SECTION 4.2 Reserved.

                  SECTION 4.3 Other Liens or Interests. Except for the
conveyances hereunder and under the other Basic Documents, Originator will not
sell, pledge, assign or transfer to any other Person or grant, create, incur,
assume or suffer to exist any Lien on the Receivables or the Other Conveyed
Property or any interest herein and Depositor will not sell, pledge, assign or
transfer to any other Person, or grant, create, incur, assume or suffer to exist
any Lien on the Receivables or the Other Conveyed Property or any interest
therein, and Originator will defend the right, title, and interest of Depositor
and the Issuer in and to the Receivables and the Other Conveyed Property against
all claims of third parties claiming through or under Originator and Depositor
will defend the right, title, and interest of the Issuer in and to the
Receivables and the Other Conveyed Property against all claims of third parties
claiming through or under Depositor.

                                       8

<PAGE>

                  SECTION 4.4 Costs and Expenses. Each of Originator and
Depositor will pay all reasonable costs and disbursements in connection with the
performance of its obligations hereunder and under its Related Documents.

                  SECTION 4.5 Indemnification by Originator. (a) Originator will
defend, indemnify and hold harmless Depositor, the Issuer, the Indenture
Trustee, the Backup Servicer, the Owner Trustee, the Noteholders and the Insurer
from and against any and all costs, expenses, losses, damages, claims, and
liabilities, arising out of or resulting from: (i) any breach of any of
Originator's representations and warranties contained herein, (ii) the use,
ownership or operation by Originator or any affiliate thereof of a Financed
Vehicle, (iii) any action taken, or failed to be taken, by it in respect of the
Receivables other than in accordance with this Agreement or the Sale and
Servicing Agreement or (iv) the negligence (except for errors in judgment),
willful misfeasance, or bad faith of Originator in the performance of its duties
under this Agreement or by reason of reckless disregard of Originator's
obligations and duties under this Agreement.

                  (b)      Originator will defend, indemnify and hold harmless
the Issuer, the Indenture Trustee, the Backup Servicer, the Owner Trustee, the
Noteholders and the Insurer from and against any and all costs, expenses,
losses, damages, claims, and liabilities, arising out of or resulting from any
Taxes which may at any time be asserted against such Persons with respect to (i)
the conveyance or ownership of the Receivables or the Other Conveyed Property
hereunder, (ii) the conveyance or ownership of the Receivables under the Sale
and Servicing Agreement and (iii) the issuance and original sale of the Notes
and the issuance of the Certificate, and costs and expenses in defending against
the same, arising by reason of the acts to be performed by Originator under this
Agreement or imposed against such Persons.

                  Indemnification under this Section 4.5 will include reasonable
fees and expenses of counsel and expenses of litigation and will survive payment
of the Notes and the Certificate and termination of this Agreement. The
indemnity obligations hereunder will be in addition to any obligation that
Originator may otherwise have.

                  SECTION 4.6 Indemnification by the Depositor. (a) The
Depositor will defend, indemnify and hold harmless the Originator, the Issuer,
the Indenture Trustee, the Backup Servicer, the Owner Trustee, the Noteholders
and the Insurer from and against any and all costs, expenses, losses, damages,
claims, and liabilities, arising out of or resulting from: (i) any breach of any
of the Depositor's representations and warranties contained herein, (ii) the
use, ownership or operation by the Depositor or any affiliate thereof of a
Financed Vehicle, (iii) any action taken, or failed to be taken, by it in
respect of the Receivables other than in accordance with this Agreement or the
Sale and Servicing Agreement or (iv) the negligence (except for errors in
judgment), willful misfeasance, or bad faith of the Depositor in the performance
of its duties under this Agreement or by reason of reckless disregard of the
Depositor's obligations and duties under this Agreement.

                  (b)      Depositor will defend, indemnify and hold harmless
the Issuer, the Indenture Trustee, the Backup Servicer, the Owner Trustee, the
Noteholders and the Insurer from and against any and all costs, expenses,
losses, damages, claims, and liabilities, arising out of or resulting from any
Taxes which may at any time be asserted against such Persons with respect to the
transactions contemplated by this Agreement, including (i) the conveyance or
ownership of

                                       9

<PAGE>

the Receivables or the Other Conveyed Property hereunder, (ii) the conveyance or
ownership of the Receivables under the Sale and Servicing Agreement and (iii)
the issuance and original sale of the Notes and the issuance of the Certificate,
and costs and expenses in defending against the same, arising by reason of the
acts to be performed by Depositor under this Agreement or imposed against such
Persons.

                  Indemnification under this Section 4.6 will include reasonable
fees and expenses of counsel and expenses of litigation and will survive payment
of the Notes and the Certificate and termination of this Agreement. The
indemnity obligations hereunder will be in addition to any obligation that the
Depositor may otherwise have.

                                   ARTICLE V.

                                  REPURCHASES

                  SECTION 5.1 Repurchase of Receivables Upon Breach of Warranty.
Upon the occurrence of a Repurchase Event, Originator will, unless the breach
which is the subject of such Repurchase Event will have been cured in all
material respects, repurchase the Receivable relating thereto from the Issuer
and, simultaneously with the repurchase of the Receivable, Originator will
deposit the Purchase Amount in full, without deduction or offset, to the
Collection Account, pursuant to Section 3.2 of the Sale and Servicing Agreement.
It is understood and agreed that, except as set forth in Section 6.1, the
obligation of Originator to repurchase any Receivable, as to which a breach
occurred and is continuing, will, if such obligation is fulfilled, constitute
the sole remedy against Originator for such breach available to Depositor, the
Issuer, the Insurer, the Backup Servicer, the Noteholders, the
Certificateholder, the Indenture Trustee on behalf of the Noteholders or the
Owner Trustee on behalf of the Certificateholder. This Section 5.1 is intended
to grant the Issuer and the Indenture Trustee a direct right against Originator
to demand performance hereunder, and in connection therewith, Originator waives
any requirement of prior demand against Depositor with respect to such
repurchase obligation. Any such repurchase will take place in the manner
specified in Section 3.2 of the Sale and Servicing Agreement. Notwithstanding
any other provision of this Agreement or the Sale and Servicing Agreement to the
contrary, the obligation of Originator under this Section 5.1 will not terminate
upon a termination of Originator as Servicer under the Sale and Servicing
Agreement and will be performed in accordance with the terms hereof
notwithstanding the failure of the Servicer or Depositor to perform any of their
respective obligations with respect to such Receivable under the Sale and
Servicing Agreement.

                  In addition to the foregoing and notwithstanding whether the
related Receivable will have been purchased by Originator, Originator will
indemnify the Depositor, the Issuer, the Indenture Trustee, the Backup Servicer,
the Owner Trustee, the Insurer, the Noteholders and the Certificateholder from
and against all costs, expenses, losses, damages, claims and liabilities,
including reasonable fees and expenses of counsel, which may be asserted against
or incurred by any of them as a result of third party claims arising out of the
events or facts giving rise to such Repurchase Events.

                  SECTION 5.2 Reassignment of Purchased Receivables. Upon
deposit in the Collection Account of the Purchase Amount of any Receivable
repurchased by Originator under

                                       10

<PAGE>

Section 5.1, the Issuer will take such steps as may be reasonably requested by
Originator in order to assign to Originator all of the Issuer's right, title and
interest in and to such Receivable and all security and documents and all Other
Conveyed Property conveyed to the Issuer directly relating thereto, without
recourse, representation or warranty, except as to the absence of Liens created
by or arising as a result of actions of the Issuer. Such assignment will be a
sale and assignment outright, and not for security. If, following the
reassignment of a Purchased Receivable, in any enforcement suit or legal
proceeding, it is held that Originator may not enforce any such Receivable on
the ground that it will not be a real party in interest or a holder entitled to
enforce the Receivable, the Issuer will, at the expense of Originator, take such
steps as Originator deems reasonably necessary to enforce the Receivable,
including bringing suit in the Issuer's name.

                  SECTION 5.3 Waivers. No failure or delay on the part of
Depositor, or the Issuer as assignee of Depositor, in exercising any power,
right or remedy under this Agreement will operate as a waiver thereof, nor will
any single or partial exercise of any such power, right or remedy preclude any
other or future exercise thereof or the exercise of any other power, right or
remedy.

                                   ARTICLE VI.
                                  MISCELLANEOUS

                  SECTION 6.1 Liability of Originator and Depositor. Each of
Originator and Depositor will be liable in accordance herewith only to the
extent of the obligations in this Agreement specifically undertaken by each of
Originator, and Depositor, respectively and the representations and warranties
of each of Originator and Depositor, respectively.

                  SECTION 6.2 Merger or Consolidation of Originator or
Depositor. Any corporation, limited liability company or other entity (i) into
which Originator or Depositor may be merged or consolidated, (ii) resulting from
any merger or consolidation to which Originator or Depositor is a party or (iii)
succeeding to the business of Originator or Depositor, in the case of Depositor,
which corporation, limited liability company or other entity has a certificate
of incorporation or limited liability company agreement containing provisions
relating to limitations on business and other matters substantively identical to
those contained in Depositor's limited liability company agreement, provided
that in any of the foregoing cases such corporation or other entity will execute
an agreement of assumption to perform every obligation of Originator or
Depositor, as the case may be, under this Agreement and, whether or not such
assumption agreement is executed, will be the successor to Originator or
Depositor, as the case may be, hereunder (without relieving Originator or
Depositor of their responsibilities hereunder, if it survives such merger or
consolidation) without the execution or filing of any document or any further
action by any of the parties to this Agreement. Notwithstanding the foregoing,
so long as no Insurer Default has occurred and is continuing, Depositor will not
merge or consolidate with any other Person or permit any other Person to become
the successor to Depositor's business without the prior written consent of the
Insurer. Originator or Depositor will promptly inform the other parties, the
Issuer, the Indenture Trustee, the Owner Trustee and, so long as no Insurer
Default has occurred and is continuing, the Insurer, of such merger,
consolidation or purchase and assumption. Notwithstanding the foregoing, as a
condition to the consummation of the transactions referred to in clauses (i),
(ii) and (iii) above, (x) immediately after giving effect to such transaction,
no representation or warranty made pursuant to Sections 3.1 (other then

                                       11

<PAGE>

subsection (e) thereof in connection with a change in control as provided in the
Insurance Agreement) and 3.2 will have been breached (for purposes hereof, such
representations and warranties will be true and correct as of the date of the
consummation of such transaction) and with respect to a transaction involving
the Depositor, no event that, after notice or lapse of time, or both, would
become an event of default under the Insurance Agreement, has occurred and is
continuing, (y) with respect to a transaction involving the Depositor, Depositor
will have delivered written notice of such consolidation, merger or purchase and
assumption to the Rating Agencies prior to the consummation of such transaction
and will have delivered to the Issuer, the Insurer and the Indenture Trustee an
Officer's Certificate and an Opinion of Counsel each stating that such
consolidation, merger or succession and such agreement of assumption comply with
this Section 6.2 and that all conditions precedent, if any, provided for in this
Agreement relating to such transaction have been complied with, and (z)
Originator or Depositor, as applicable, will have delivered to the Issuer and
the Indenture Trustee an Opinion of Counsel, stating, in the opinion of such
counsel, either (A) all financing statements and continuation statements and
amendments thereto have been executed and filed that are necessary to preserve
and protect the interest of the Issuer and the Indenture Trustee in the
Receivables and reciting the details of the filings or (B) no such action will
be necessary to preserve and protect such interest.

                  SECTION 6.3 Limitation on Liability of Originator, and
Depositor and Others. Originator, Depositor and any director, officer, employee
or agent thereof may rely in good faith on the advice of counsel or on any
document of any kind prima facie properly executed and submitted by any Person
respecting any matters arising under this Agreement. Neither Originator nor
Depositor will be under any obligation to appear in, prosecute or defend any
legal action that is not incidental to its obligations under this Agreement or
its Related Documents and that in its opinion may involve it in any expense or
liability.

                  SECTION 6.4 Originator May Own Notes or the Certificate.
Subject to the provisions of the Basic Documents, Originator and any Affiliate
of Originator may in their individual or any other capacity become the owner or
pledgee of Notes or the Certificate with the same rights as they would have if
they were not Originator or an Affiliate thereof.

                  SECTION 6.5 Amendment.

                  (a)      This Agreement may be amended by Originator and
         Depositor with the prior written consent of the Insurer (so long as no
         Insurer Default has occurred and is continuing) but without the consent
         of the Indenture Trustee, the Owner Trustee, the Certificateholder or
         any of the Noteholders (i) to cure any ambiguity or (ii) to correct any
         provisions in this Agreement; provided, however, that such action will
         not, as evidenced by an Opinion of Counsel delivered to the Issuer, the
         Owner Trustee and the Indenture Trustee, adversely affect in any
         material respect the interests of any Certificateholder or Noteholder.

                  (b)      This Agreement may also be amended from time to time
         by Originator, and Depositor, with the prior written consent of the
         Insurer (so long as no Insurer Default has occurred and is continuing)
         and with the consent of the Indenture Trustee and, if required, the
         Certificateholder and the holders of Notes evidencing not less than a
         majority of the outstanding principal amount of the Notes, for the
         purpose of adding any

                                       12

<PAGE>

         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 Certificateholder or Noteholders; provided, however, the
         Originator provides the Indenture Trustee with an Opinion of Counsel,
         (which may be provided by the Originator's internal counsel) that no
         such amendment will increase or reduce in any manner the amount of, or
         accelerate or delay the timing of, collections of payments on
         Receivables or distributions that will be required to be made on any
         Note or Certificate.

                  (c)      Prior to the execution of any such amendment or
         consent, Originator will have furnished written notification of the
         substance of such amendment or consent to each Rating Agency.

                  (d)      It will not be necessary for the consent of
         Certificateholder or Noteholders pursuant to this Section 6.5 to
         approve the particular form of any proposed amendment or consent, but
         it will be sufficient if such consent will approve the substance
         thereof. The manner of obtaining such consents and of evidencing the
         authorization of the execution thereof by Certificateholder or
         Noteholders will be subject to such reasonable requirements as the
         Indenture Trustee may prescribe, including the establishment of record
         dates. The consent of a Holder of a Certificate or a Note given
         pursuant to this Section or pursuant to any other provision of this
         Agreement will be conclusive and binding on such Holder and on all
         future Holders of such Certificate or Note and of any Certificate or
         Note issued upon the transfer thereof or in exchange thereof or in lieu
         thereof whether or not notation of such consent is made upon the
         Certificate or Note.

                  SECTION 6.6 Notices.

                  All demands, notices and communications hereunder will be in
writing and will be deemed to have been duly given to the addressee if mailed,
by first-class registered mail, postage prepaid service, confirmed facsimile
transmission, or a nationally recognized express courier, as follows:

                  If to the Originator:

                           Triad Financial Corporation
                           7711 Center Avenue
                           Suite 100
                           Huntington Beach, California 92647
                           Attention: Chief Financial Officer

                  With a separate copy to:

                           Attention: Vice President, Legal

                                       13

<PAGE>

                  If to the Depositor:

                           Triad Financial Special Purpose LLC
                           7711 Center Avenue
                           Suite 390
                           Huntington Beach, California 92647
                           Attention: Chief Financial Officer

or such other address as will be designated by a party in a written notice
delivered to the other party or to the Issuer, Owner Trustee or the Indenture
Trustee, as applicable. Any such demand, notice or communication hereunder will
be deemed to have been received on the date delivered to or received at the
premises of the addressee as evidenced by the date noted on the return receipt.

                  SECTION 6.7 Merger and Integration. Except as specifically
stated otherwise herein, this Agreement and Related Documents set forth the
entire understanding of the parties relating to the subject matter hereof, and
all prior understandings, written or oral, are superseded by this Agreement and
the Related Documents. This Agreement may not be modified, amended, waived or
supplemented except as provided herein.

                  SECTION 6.8 Severability of Provisions. If any one or more of
the covenants, provisions or terms of this Agreement will be for any reason
whatsoever held invalid, then such covenants, provisions or terms will be deemed
severable from the remaining covenants, provisions or terms of this Agreement
and will in no way affect the validity or enforceability of the other provisions
of this Agreement.

                  SECTION 6.9 Intention of the Parties.

                  (a)      The execution and delivery of this Agreement will
         constitute an acknowledgment by Originator and Depositor that they
         intend that the assignments and transfers herein contemplated
         constitute sales and assignments outright, and not for security, of the
         Receivables and the Other Conveyed Property, conveying good title
         thereto free and clear of any Liens, from Originator to Depositor and
         that the Receivables and the Other Conveyed Property will not be a part
         of Originator's estate in the event of the bankruptcy, reorganization,
         arrangement, insolvency or liquidation proceeding, or other proceeding
         under any federal or state bankruptcy or similar law, or the occurrence
         of another similar event, of, or with respect to, Originator. If such
         conveyance is determined to be made as security for a loan made by
         Depositor, the Issuer, the Noteholders or the Certificateholder to the
         Originator the parties intend that Originator will have granted to
         Depositor a security interest in all of Originator's right, title and
         interest, respectively, in and to:

                           (1)      the Receivables and all moneys received
         thereon after the Cutoff Date,

                           (2)      the Other Conveyed Property conveyed to
         Depositor by Originator pursuant to this Agreement including (a) an
         assignment of the security interests in the

                                       14

<PAGE>

         Financed Vehicles granted by Obligors pursuant to the Receivables, and
         any other interest of the Depositor in such Financed Vehicles, (b) any
         proceeds and the right to receive any proceeds with respect to the
         Receivables from claims on any physical damage, credit life or
         disability insurance policies covering Financed Vehicles or Obligors
         and any proceeds from the liquidation of the Receivables, (c) the right
         to cause the related Dealer or a Third-Party Lender to repurchase
         Receivables pursuant to a Dealer Agreement or an Auto Loan Purchase and
         Sale Agreement, respectively, as a result of the breach of
         representation or warranty in the related Dealer Agreement or Auto Loan
         Purchase and Sale Agreement, respectively, (d) all rights, if any, to
         refunds for the costs of any Service Contracts on the related Financed
         Vehicles, (e) the related Receivables Files and (f) the proceeds of any
         and all of the foregoing, and

                           (3)      all proceeds and investments with respect to
         items (1) and (2) above.

                  (b)      This Agreement will constitute a security agreement
         under applicable law.

                  SECTION 6.10 Governing Law. This Agreement will be construed
in accordance with the laws of the State of New York without regard to the
principles of conflicts of laws thereof and the obligations, rights and remedies
of the parties under this Agreement will be determined in accordance with such
laws.

                  SECTION 6.11 Counterparts. For the purpose of facilitating the
execution of this Agreement and for other purposes, this Agreement may be
executed simultaneously in any number of counterparts, each of which
counterparts will be deemed to be an original, and all of which counterparts
will constitute but one and the same instrument.

                  SECTION 6.12 Conveyance of the Receivables and the Other
Conveyed Property to the Issuer. Originator acknowledges that Depositor intends,
pursuant to the Sale and Servicing Agreement, to convey the Receivables and the
Other Conveyed Property, together with its rights under this Agreement, to the
Issuer on the date hereof. Originator acknowledges and consents to such
conveyance and pledge and waives any further notice thereof and covenants and
agrees that the representations and warranties of Originator contained in this
Agreement and the rights of Depositor hereunder are intended to benefit the
Insurer, the Issuer, the Owner Trustee, the Indenture Trustee, the Noteholders
and the Certificateholder. In furtherance of the foregoing, Originator covenants
and agrees to perform its duties and obligations hereunder, in accordance with
the terms hereof for the benefit of the Insurer, the Issuer, the Owner Trustee,
the Indenture Trustee, the Noteholders and the Certificateholder and that,
notwithstanding anything to the contrary in this Agreement, Originator will be
directly liable to the Issuer, the Owner Trustee, the Indenture Trustee, the
Noteholders and the Certificateholder (notwithstanding any failure by the
Servicer or the Backup Servicer to perform its respective duties and obligations
hereunder or under the Related Documents) and that the Indenture Trustee may
enforce the duties and obligations of Originator under this Agreement against
Originator for the benefit of the Insurer, the Owner Trustee, the Indenture
Trustee, the Noteholders and the Certificateholder.

                  SECTION 6.13 Nonpetition Covenant. Originator will not
petition or otherwise invoke the process of any court or government authority
for the purpose of

                                       15

<PAGE>

commencing or sustaining a case against the Depositor or the Issuer under any
federal or state bankruptcy, insolvency or similar law or appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar official
of the Depositor or the Issuer or any substantial part of their respective
property, or ordering the winding up or liquidation of the affairs of the
Depositor or the Issuer.

                                       16

<PAGE>

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

                              TRIAD FINANCIAL CORPORATION,
                                   as Originator

                              By /s/ MIKE L. WILHELMS
                                 ---------------------------------------------
                                 Name:  Mike L. Wilhelms
                                 Title: Chief Financial Officer

                              TRIAD FINANCIAL SPECIAL PURPOSE LLC,
                                   as Depositor

                              By  /s/ MIKE L. WILHELMS
                                 ---------------------------------------------
                                 Name:  Mike L. Wilhelms
                                 Title: Chief Financial Officer

Accepted:

JPMORGAN CHASE BANK,
as Indenture Trustee

By /s/ MICHAEL A. SMITH
   ---------------------------------
Name: Michael A. Smith
Title: Vice President

                     [Signature page to Purchase Agreement]

<PAGE>

                                                                      SCHEDULE A

                             SCHEDULE OF RECEIVABLES

                      [On File with Dewey Ballantine LLP]

<PAGE>

                                                                      SCHEDULE B

                         REPRESENTATIONS AND WARRANTIES
                                OF THE ORIGINATOR

         1.       Characteristics of Receivables. Each Receivable (A) was
originated (i) by Triad, (ii) by a Dealer and purchased by Triad from such
Dealer under an existing Dealer Agreement or pursuant to a Dealer Assignment
with Triad and was validly assigned by such Dealer to Triad pursuant to a Dealer
Assignment, or (iii) by a Third-Party Lender and purchased by Triad from such
Third-Party Lender under an existing Auto Loan Purchase and Sale Agreement or
pursuant to a Third-Party Lender Assignment with Triad and was validly assigned
by such Third-Party Lender to Triad pursuant to a Third-Party Lender Assignment,
(B) was originated by Triad, such Dealer or such Third-Party Lender for the
retail sale of a Financed Vehicle in the ordinary course of Triad's, the
Dealer's or the Third-Party Lender's business, in each case, in accordance with
Triad's credit policies and was fully and properly executed by the parties
thereto, and Triad, each Dealer and each Third-Party Lender had all necessary
licenses and permits to originate Receivables in the state where Triad, each
such Dealer or each such Third-Party Lender was located, (C) contains customary
and enforceable provisions such that the rights and remedies of the holder
thereof are adequate for realization against the collateral security, (D) is a
Receivable which provides for level monthly payments (provided that the period
in the first Collection Period and the payment in the final Collection Period of
the Receivable may be minimally different from the normal period and level
payment) that, if made when due, will fully amortize the Amount Financed over
the original term and (E) has not been amended or collections with respect to
which waived, other than as evidenced in the Receivable File relating thereto.

         2.       Fraud or Misrepresentation. Each Receivable was originated (i)
by Triad, (ii) by a Dealer and was sold by the Dealer to Triad, or (iii) by a
Third-Party Lender and was sold by the Third-Party Lender to Triad, and was
transferred by Triad to the Depositor and by the Depositor to the Issuer without
any fraud or misrepresentation on the part of Triad, the Depositor, such Dealer
or Third-Party Lender in any case.

         3.       Compliance with Law. All requirements of applicable federal,
state and local laws, and regulations thereunder (including, without limitation,
usury laws, the Federal Truth-in-Lending Act, the Equal Credit Opportunity Act,
the Fair Credit Billing Act, the Fair Credit Reporting Act, the Fair Debt
Collection Practices Act, the Federal Trade Commission Act, the Moss-Magnuson
Warranty Act, the Federal Reserve Board's Regulations "B" and "Z" (including
amendments to the Federal Reserve's Official Staff Commentary to Regulation Z,
effective October 1, 1998, concerning negative equity loans), the Soldiers' and
Sailors' Civil Relief Act of 1940, each applicable state Motor Vehicle Retail
Installment Sales Act, and state adaptations of the National Consumer Act and of
the Uniform Consumer Credit Code and other consumer credit laws and equal credit
opportunity and disclosure laws) in respect of the Receivables and the Financed
Vehicles, have been complied with in all material respects, and each Receivable
and the sale of the Financed Vehicle evidenced by each Receivable complied at
the time it was originated or made and now complies in all material respects
with all applicable legal requirements.

<PAGE>

         4.       Origination. Each Receivable was originated in the United
States and the related Obligor is a resident of the United States.

         5.       Binding Obligation. Each Receivable represents the genuine,
legal, valid and binding payment obligation of the Obligor thereon, enforceable
by the holder thereof in accordance with its terms, except (A) as enforceability
may be limited by bankruptcy, insolvency, reorganization or similar laws
affecting the enforcement of creditors' rights generally and by equitable
limitations on the availability of specific remedies, regardless of whether such
enforceability is considered in a proceeding in equity or at law and (B) as such
Receivable may be modified by the application after the applicable Cutoff Date
of the Soldiers' and Sailors' Civil Relief Act of 1940, as amended; and all
parties to each Receivable had full legal capacity to execute and deliver such
Receivable and all other documents related thereto and to grant the security
interest purported to be granted thereby.

         6.       No Government Obligor. No Obligor is the United States of
America or any State or any agency, department, subdivision or instrumentality
thereof.

         7.       Obligor Bankruptcy. At the related Cutoff Date no Obligor had
been identified on the records of Triad as being the subject of a current
bankruptcy proceeding.

         8.       Schedule of Receivables. The information set forth in the
Schedule of Receivables has been produced from the Electronic Ledger and was
true and correct in all material respects as of the close of business on the
related Cutoff Date.

         9.       Marking Records. By the Closing Date, the Originator will have
caused the portions of the Electronic Ledger relating to the Receivables to be
clearly and unambiguously marked to show that the Receivables have been sold to
the Depositor by the Originator and sold by the Depositor to the Issuer in
accordance with the terms of the Sale and Servicing Agreement.

         10.      Computer Tape. The Computer Tape made available by the
Originator to the Trust on the Closing Date, was complete and accurate as of the
related Cutoff Date and includes a description of the same Receivables that are
described in the Schedule of Receivables.

         11.      Adverse Selection. No selection procedures adverse to the
Noteholders or the Insurer were utilized in selecting the Receivables from those
receivables owned by the Originator which met the selection criteria contained
in the Sale and Servicing Agreement.

         12.      Chattel Paper. The Receivables constitute chattel paper within
the meaning of the UCC as in effect in the States of California, New York and
Delaware.

         13.      One Original. There is only one original executed copy of each
Receivable.

         14.      Receivable Files Complete. There exists a Receivable File
pertaining to each Receivable and such Receivable File contains (a) a fully
executed original of the Receivable, (b) in the case of retail installment sale
contracts, the original executed credit application, or a paper or electronic
copy thereof and (c) the original Lien Certificate or application therefor. Each
of such documents which is required to be signed by the Obligor has been signed
by the Obligor in the appropriate spaces. All blanks on any form have been
properly filled in and each form has

                                    SECH B-2

<PAGE>

otherwise been correctly prepared. The complete Receivable File for each
Receivable currently is in the possession of the Custodian or in the possession
of a third-party vendor.

         15.      Receivables in Force. No Receivable has been satisfied,
subordinated or rescinded, and the Financed Vehicle securing each such
Receivable has not been released from the lien of the related Receivable in
whole or in part. No terms of any Receivable have been waived, altered or
modified in any respect since its origination, except by instruments or
documents identified in the Receivable File. No Receivable has been modified as
a result of application of the Soldiers' and Sailors' Civil Relief Act of 1940,
as amended. All funds payable to or on behalf of the Obligors with respect to
the Receivables have been fully disbursed.

         16.      Lawful Assignment; No Consent Required. No Receivable was
originated in, or is subject to the laws of, any jurisdiction the laws of which
would make unlawful, void or voidable the sale, transfer and assignment of such
Receivable and the Other Conveyed Property under this Agreement. For the
validity of the sale, transfer and assignment of the Receivables and Other
Conveyed Property to Triad, the Depositor, and the Trust, no consent by any
Dealer, Third-Party Lender or Obligor is required under any agreement or
applicable law.

         17.      Good Title. No Receivable has been sold, transferred, assigned
or pledged by the Dealer or Third-Party Lender, Triad or the Depositor, as the
case may be, to any Person other than Triad, the Depositor and the Issuer, as
the case may be. Immediately prior to the conveyance of the Receivables to the
Depositor pursuant to this Agreement, as applicable, the Originator was the sole
owner thereof and had good title thereto, free of any Lien and, upon execution
and delivery of this Agreement by the Originator, the Depositor will have good
title to and will be the sole owner of such Receivables, free of any Lien. No
Dealer or Third-Party Lender has an unpaid participation in, or other right to
receive, proceeds of any Receivable. The Originator has not taken any action to
convey any right to any Person that would result in such Person having a right
to payments received under the related Insurance Policies or the related Dealer
Agreements, Auto Loan Purchase and Sale Agreements, Dealer Assignments or
Third-Party Lender Assignments or to payments due under such Receivables.

         18.      Security Interest in Financed Vehicle. Each Receivable created
or will create a valid, binding and enforceable first priority security interest
in favor of the Originator in the Financed Vehicle. The Lien Certificate and
original certificate of title for each Financed Vehicle show, or if a new or
replacement Lien Certificate is being applied for with respect to such Financed
Vehicle the Lien Certificate will be received within 180 days of the Closing
Date, as applicable, and will show the Originator as the original secured party
under each Receivable as the holder of a first priority security interest in
such Financed Vehicle. With respect to each Receivable for which the Lien
Certificate has not yet been returned from the Registrar of Titles, the
Originator has applied for or received written evidence from the related Dealer
or Third-Party Lender that such Lien Certificate showing the Originator as first
lienholder has been applied for and the Originator's security interest has been
validly assigned by the Originator to the Depositor pursuant to this Agreement
and by the Depositor to the Trust pursuant to the Sale and Servicing Agreement.
Immediately after the sale, transfer and assignment thereof by the Originator to
the Depositor and by the Depositor to the Trust, each Receivable will be secured
by an enforceable and perfected first priority security interest in the Financed
Vehicle in favor of the Indenture Trustee as secured party, which security
interest is prior to all other Liens upon and security

                                    SCF B-3

<PAGE>

interests in such Financed Vehicle which now exist or may hereafter arise or be
created (except, as to priority, for any lien for taxes, labor or materials
affecting a Financed Vehicle). As of the related Cutoff Date there were no Liens
or claims for taxes, work, labor or materials affecting a Financed Vehicle which
are or may be Liens prior or equal to the Liens of the related Receivable.

         19.      All Filings Made. All filings (including, without limitation,
UCC filings) required to be made by any Person, and actions required to be taken
or performed by any Person in any jurisdiction to give the Trust a first
priority perfected lien on, or ownership interest in, the Receivables and the
proceeds thereof and the Other Conveyed Property have been made, taken or
performed.

         20.      No Impairment. The Originator has not done anything to convey
any right to any Person that would result in such Person having a right to
payments due under the Receivable or otherwise to impair the rights of the
Trust, the Insurer, the Indenture Trustee and the Noteholders in any Receivable
or the proceeds thereof.

         21.      Receivable Not Assumable. No Receivable is assumable by
another Person in a manner which would release the Obligor thereof from such
Obligor's obligations to Triad with respect to such Receivable.

         22.      No Defenses. No Receivable is subject to any right of
rescission, setoff, counterclaim or defense and no such right has been asserted
or threatened with respect to any Receivable.

         23.      No Default. There has been no default, breach, violation or
event permitting acceleration under the terms of any Receivable (other than
payment delinquencies of not more than 30 days and other defaults that will not
have a material adverse effect on the ability of the Obligor to make, nor the
enforceability of Obligor's obligation to make, Scheduled Receivables Payments
and will not have a material adverse effect on the validity or priority of
Originator's lien on the Financed Vehicle), and no condition exists or event has
occurred and is continuing that with notice, the lapse of time or both would
constitute a default, breach, violation or event permitting acceleration under
the terms of any Receivable, and there has been no waiver of any of the
foregoing. As of the related Cutoff Date no Financed Vehicle had been
repossessed by or at the direction of the Originator.

                                     SCF B-4

<PAGE>

         24.      Insurance. At the time of an origination of a Receivable by
Triad or a purchase of a Receivable by Triad from a Dealer or Third-Party
Lender, each Financed Vehicle was covered by a comprehensive and collision
insurance policy (i) subject to maximum deductibles of $500 for collision
coverage and $500 for comprehensive coverage, (ii) naming Triad as loss payee
and (iii) insuring against loss and damage due to fire, theft, transportation,
collision and other risks generally covered by comprehensive and collision
coverage. Each Receivable requires the Obligor to maintain physical loss and
damage insurance, naming Triad and its successors and assigns as additional
insured parties, and each Receivable permits the holder thereof to obtain
physical loss and damage insurance at the expense of the Obligor if the Obligor
fails to do so. No Financed Vehicle is insured under a policy of force-placed
insurance on the related Cutoff Date.

         25.      Past Due. At the related Cutoff Date no Scheduled Receivable
Payment was more than 30 days past due.

         26.      Remaining Principal Balance. At the related Cutoff Date the
Principal Balance of each Receivable set forth in the Schedule of Receivables is
true and accurate in all material respects.

         27.      Certain Characteristics of Receivables. (A) Each Receivable
had a remaining maturity, as of the Cutoff Date, of not more than 72 months; (B)
each Receivable had an original maturity of not more than 72 months; (C) not
more than 56.6% of Receivables (calculated by Aggregate Principal Balance) will
have an original term to maturity of 72 months; (D) each Receivable had a
remaining Principal Balance as of the Cutoff Date of at least $5,000 and not
more than $50,000; and (E) each Receivable has an Annual Percentage Rate of at
least 8.50% and not more than 30%.

                                    SCF B-5

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