Document:

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                                                                   EXHIBIT 4.6

                                    INDENTURE

                                     between

                       ONYX ACCEPTANCE OWNER TRUST 2003-B,
                                   as Issuer,

                                       and

                                 CITIBANK, N.A.
                              as Indenture Trustee

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

                             Dated as of May 1, 2003
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                                TABLE OF CONTENTS

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<S>                                                                                                   <C>
ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE...............................................     1
   Section  1.01        Definitions................................................................     1
   Section  1.02        Incorporation by Reference of Trust Indenture Act..........................     7
   Section  1.03        Rules of Construction......................................................     7
   Section  1.04        Accounting Terms...........................................................     8
ARTICLE II THE NOTES...............................................................................     8
   Section  2.01        Form.......................................................................     8
   Section  2.02        Execution, Authentication and Delivery.....................................     8
   Section  2.03        Temporary Notes............................................................     9
   Section  2.04        Registration; Registration of Transfer and Exchange........................     9
   Section  2.05        Mutilated, Destroyed, Lost or Stolen Notes.................................    10
   Section  2.06        Persons Deemed Owner.......................................................    11
   Section  2.07        Payment of Principal and Interest; Defaulted Interest......................    11
   Section  2.08        Cancellation...............................................................    13
   Section  2.09        Book-Entry Notes...........................................................    13
   Section  2.10        Notices to Clearing Agency.................................................    14
   Section  2.11        Definitive Notes...........................................................    14
   Section  2.12        Release of Collateral......................................................    14
   Section  2.13        Tax Treatment..............................................................    15
   Section  2.14        ERISA......................................................................    15
ARTICLE III COVENANTS..............................................................................    15
   Section  3.01        Payment of Principal and Interest..........................................    15
   Section  3.02        Maintenance of Office or Agency............................................    15
   Section  3.03        Money for Payments to be Held in Trust.....................................    16
   Section  3.04        Existence..................................................................    17
   Section  3.05        Protection of Collateral...................................................    18
   Section  3.06        Opinions as to Collateral..................................................    18
   Section  3.07        Performance of Obligations; Servicing of Contracts.........................    19
   Section  3.08        Negative Covenants.........................................................    20
   Section  3.09        Annual Statement as to Compliance..........................................    21
   Section  3.10        Issuer May Consolidate, etc. Only on Certain Terms.........................    21
   Section  3.11        Successor Transferee.......................................................    24
   Section  3.12        No Other Business..........................................................    24
   Section  3.13        Servicer's Obligations.....................................................    24
   Section  3.14        Restricted Payments........................................................    24
   Section  3.15        Notice of Events of Default................................................    25
   Section  3.16        Further Instruments and Acts...............................................    25
   Section  3.17        Compliance with Laws.......................................................    25
   Section  3.18        Amendments of Sale and Servicing Agreement and Trust Agreement.............    25
   Section  3.19        Representations and Warranties of the Issuer...............................    25
ARTICLE IV SATISFACTION AND DISCHARGE..............................................................    26
   Section  4.01        Satisfaction and Discharge of Indenture....................................    26
   Section  4.02        Application of Trust Money.................................................    28
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   Section  4.03        Repayment of Monies Held by Paying Agent...................................    28
ARTICLE V EVENTS OF DEFAULT; REMEDIES..............................................................    28
   Section  5.01        Events of Default..........................................................    28
   Section  5.02        Rights Upon Event of Default...............................................    29
   Section  5.03        Collection of Indebtedness and Suits for Enforcement by Indenture Trustee..    30
   Section  5.04        Remedies...................................................................    32
   Section  5.05        Optional Preservation of the Collateral....................................    33
   Section  5.06        Priorities.................................................................    33
   Section  5.07        Limitation of Suits........................................................    34
   Section  5.08        Unconditional Rights of Noteholders to Receive Principal and Interest......    35
   Section  5.09        Restoration of Rights and Remedies.........................................    35
   Section  5.10        Rights and Remedies Cumulative.............................................    36
   Section  5.11        Delay or Omission Not a Waiver.............................................    36
   Section  5.12        Control by Noteholders.....................................................    36
   Section  5.13        Waiver of Past Defaults....................................................    36
   Section  5.14        Undertaking for Costs......................................................    37
   Section  5.15        Waiver of Stay or Extension Laws...........................................    37
   Section  5.16        Action on Notes............................................................    37
   Section  5.17        Performance and Enforcement of Certain Obligations.........................    38
ARTICLE VI THE INDENTURE TRUSTEE...................................................................    38
   Section  6.01        Duties of Indenture Trustee................................................    38
   Section  6.02        Rights of Indenture Trustee................................................    41
   Section  6.03        Individual Rights of Indenture Trustee.....................................    42
   Section  6.04        Indenture Trustee's Disclaimer.............................................    42
   Section  6.05        Notice of Defaults.........................................................    42
   Section  6.06        Reports by Indenture Trustee to Holders....................................    43
   Section  6.07        Compensation and Indemnity.................................................    43
   Section  6.08        Replacement of Indenture Trustee...........................................    43
   Section  6.09        Successor Indenture Trustee by Merger......................................    45
   Section  6.10        Appointment of Co-Indenture Trustee or Separate Indenture Trustee..........    45
   Section  6.11        Eligibility; Disqualification..............................................    46
   Section  6.12        Preferential Collection of Claims Against Issuer...........................    47
   Section  6.13        Representations and Warranties of Indenture Trustee........................    47
ARTICLE VII NOTEHOLDERS' LISTS AND REPORTS.........................................................    47
   Section  7.01        Issuer to Furnish Indenture Trustee Names and Addresses of Noteholders.....    47
   Section  7.02        Preservation of Information; Communications to Noteholders.................    47
   Section  7.03        Reports by Issuer..........................................................    48
   Section  7.04        Reports by Indenture Trustee...............................................    48
ARTICLE VIII ACCOUNTS, DISBURSEMENTS AND RELEASES..................................................    49
   Section  8.01        Collection of Money........................................................    49
   Section  8.02        Trust Accounts.............................................................    49
   Section  8.03        [RESERVED].................................................................    50
   Section  8.04        Release of Collateral......................................................    50
   Section  8.05        Opinion of Counsel.........................................................    51
ARTICLE IX SUPPLEMENTAL INDENTURES.................................................................    51

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<S>                                                                                                    <C>
   Section  9.01        Supplemental Indentures Without Consent of Noteholders.....................    51
   Section  9.02        Supplemental Indentures With Consent of Noteholders........................    52
   Section  9.03        Execution of Supplemental Indentures.......................................    53
   Section  9.04        Effect of Supplemental Indenture...........................................    54
   Section  9.05        Conformity With Trust Indenture Act........................................    54
   Section  9.06        Reference in Notes to Supplemental Indentures..............................    54
ARTICLE X REDEMPTION OF NOTES......................................................................    54
   Section  10.01       Redemption.................................................................    54
   Section  10.02       Form of Redemption Notice..................................................    55
   Section  10.03       Notes Payable on Redemption Date...........................................    55
ARTICLE XI MISCELLANEOUS...........................................................................    55
   Section  11.01       Compliance Certificates and Opinions, etc..................................    55
   Section  11.02       Form of Documents Delivered to Indenture Trustee...........................    57
   Section  11.03       Acts of Noteholders........................................................    58
   Section  11.04       Notices, etc., to Indenture Trustee, Issuer, Insurer and Rating Agencies...    58
   Section  11.05       Notices to Noteholders; Waiver.............................................    59
   Section  11.06       Alternate Payment and Notice Provisions....................................    60
   Section  11.07       Conflict With Trust Indenture Act..........................................    60
   Section  11.08       Effect of Headings and Table of Contents...................................    60
   Section  11.09       Successors and Assigns.....................................................    60
   Section  11.10       Severability...............................................................    60
   Section  11.11       Benefits of Indenture......................................................    61
   Section  11.12       Legal Holidays.............................................................    61
   Section  11.13       Governing Law..............................................................    61
   Section  11.14       Counterparts...............................................................    61
   Section  11.15       Recording of Indenture.....................................................    61
   Section  11.16       Trust Obligation...........................................................    61
   Section  11.17       No Petition................................................................    62
   Section  11.18       Inspection.................................................................    62
   Section  11.19       Limitation of Liability of Owner Trustee...................................    62
   Section  11.20       Certain Matters Regarding the Insurer......................................    63

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                                     -iii-
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                                    EXHIBITS

Schedule A        -     Schedule of Contracts
Exhibit A         -     Form of Depository Agreement
Exhibit B         -     Form of Class A-1 Note
Exhibit C         -     Form of Class A-2 Note
Exhibit D         -     Form of Class A-3 Note
Exhibit E         -     Form of Class A-4 Note

                                      -iv-
<PAGE>
      This Indenture, dated as of May 1, 2003, is between Onyx Acceptance Owner
Trust 2003-B, a Delaware statutory trust, as the Issuer, and Citibank, N.A., a
national banking association, as the Indenture Trustee.

      Each party agrees as follows for the benefit of the other parties and for
the equal and ratable benefit of the holders of the Issuer's 1.25% Auto Loan
Backed Notes, Class A-1 (the "CLASS A-1 NOTES"), 1.37% Auto Loan Backed Notes,
Class A-2 (the "CLASS A-2 NOTES"), 1.77% Auto Loan Backed Notes, Class A-3 (the
"CLASS A-3 NOTES"), and 2.45% Auto Loan Backed Notes, Class A-4 (the "CLASS A-4
NOTES" and, together with the Class A-1 Notes, the Class A-2 Notes and the Class
A-3 Notes, the "NOTES"):

                                 GRANTING CLAUSE

      The Issuer hereby Grants to the Indenture Trustee for the benefit of the
Holders of the Notes and the Insurer on the Closing Date, without recourse, all
of the Issuer's right, title and interest in, to and under the Collateral.

      The foregoing Grant is made in trust to secure the payment of principal of
and interest on, and any other amounts owing in respect of, the Notes, equally
and ratably without prejudice, and subject to the priorities and distinctions
set forth in this Indenture, and to secure compliance with the provisions of
this Indenture and the Insurance Agreement, all as provided in this Indenture
and the Insurance Agreement.

         The Indenture Trustee, as Indenture Trustee on behalf of the Holders of
the Notes and the Insurer, acknowledges such Grant, accepts the trusts under
this Indenture in accordance with the provisions of this Indenture and agrees to
perform its duties required in this Indenture to the best of its ability to the
end that the interests of the Holders of the Notes may be adequately and
effectively protected.

                                   ARTICLE I

                   DEFINITIONS AND INCORPORATION BY REFERENCE

      Section 1.01 Definitions.

               (a) Except as otherwise specified herein or as the context may
otherwise require, (i) capitalized terms that are used herein that are not
otherwise defined herein shall have the meanings assigned to them in the Sale
and Servicing Agreement (as defined below) and (ii) the following terms have the
respective meanings set forth below for all purposes of this Indenture.

      "ACT" shall have the meaning specified in Section 11.03(a).

      "ADMINISTRATION AGREEMENT" means the Administration Agreement, dated as of
the date hereof, among the Administrator, the Issuer, the Seller, the Indenture
Trustee and the Trust Agent.
<PAGE>
      "ADMINISTRATOR" means the Servicer, or any successor Administrator under
the Administration Agreement.

      "AUTHORIZED OFFICER" means, with respect to the Issuer, any officer of the
Owner Trustee who is authorized to act for the Owner Trustee or the Trust Agent,
as the case may be, in matters relating to the Issuer and who is identified on
the list of Authorized Officers delivered by the Owner Trustee or the Trust
Agent, as the case may be, to the Indenture Trustee on the Closing Date (as such
list may be modified or supplemented from time to time thereafter) and, so long
as the Administration Agreement is in effect, any Vice President or more senior
officer of the Administrator who is authorized to act for the Administrator in
matters relating to the Issuer and to be acted upon by the Administrator
pursuant to the Administration Agreement and who is identified on a list of
Authorized Officers delivered by the Administrator to the Indenture Trustee on
the Closing Date (as such list may be modified or supplemented from time to time
thereafter).

      "BASIC DOCUMENTS" means the Certificate of Trust, the Trust Agreement, the
Sale and Servicing Agreement, the Administration Agreement, the Depository
Agreement, the Insurance Agreement, the Policy, this Indenture and the Back-up
Servicing Agreement.

      "BENEFIT PLAN" shall have the meaning specified in the Trust Agreement.

      "BOOK-ENTRY NOTES" means a beneficial interest in the Notes, ownership and
transfers of which shall be made through book entries by a Clearing Agency as
described in Section 2.09.

      "CERTIFICATE OF TRUST" means the Certificate of Trust of the Issuer
substantially in the form of Exhibit B to the Trust Agreement.

      "CLASS" means all Notes whose form is identical except for variation in
denomination, principal amount or owner.

      "CLASS A NOTES" means the Class A-1 Notes, the Class A-2 Notes, the Class
A-3 Notes and the Class A-4 Notes.

      "CLASS A-1 NOTES" means the Class A-1 Notes, substantially in the form of
Exhibit B.

      "CLASS A-2 NOTES" means the Class A-2 Notes, substantially in the form of
Exhibit C.

      "CLASS A-3 NOTES" means the Class A-3 Notes, substantially in the form of
Exhibit D.

      "CLASS A-4 NOTES" means the Class A-4 Notes, substantially in the form of
Exhibit E.

      "CODE" means the Internal Revenue Code of 1986, as amended.

      "COLLATERAL" means the Trust Property, together with (i) all amounts on
deposit in the Trust Accounts and all amounts or investment property on deposit
therein or credited thereto from time to time, (ii) all rights of the Issuer
under the Sale and Servicing Agreement and the Administration Agreement and
(iii) all proceeds in any way delivered with respect to the foregoing, all
rights to payments with respect to the foregoing and all rights to enforce the
foregoing.

                                      -2-
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      "CONTROLLING PARTY" means the Insurer, so long as no Insurer Default shall
have occurred and be continuing, and the Indenture Trustee, for so long as an
Insurer Default shall have occurred and be continuing.

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

      "DEFINITIVE NOTES" shall have the meaning specified in Section 2.09.

      "DEPOSITORY AGREEMENT" means the agreement dated May 16, 2003, among the
Issuer, the Indenture Trustee and DTC, as the initial Clearing Agency, relating
to the Notes, substantially in the form attached hereto as Exhibit A.

      "DTC" means The Depository Trust Company and its successors and assigns.

      "EVENT OF DEFAULT" shall have the meaning specified in Section 5.01.

      "EXECUTIVE OFFICER" means, with respect to any corporation or bank, the
Chief Executive Officer, Chief Operating Officer, Chief Financial Officer,
President, Executive Vice President, any Vice President, the Secretary or the
Treasurer of such corporation or bank; and with respect to any partnership, any
general partner thereof.

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

      "HOLDER" or "NOTEHOLDER" means, with respect to a Note, the Person in
whose name such Note is registered in the Note Register.

      "INDEBTEDNESS" means, with respect to any Person at any time, (i)
indebtedness or liability of such Person for borrowed money whether or not
evidenced by bonds, debentures, notes or other instruments, or for the deferred
purchase price of property or services (including trade obligations); (ii)
obligations of such Person as lessee under leases which should have been or
should be, in accordance with generally accepted accounting principles, recorded
as capital leases; (iii) current liabilities of such Person in respect of
unfunded vested benefits under plans covered by Title IV of ERISA; (iv)
obligations issued for or liabilities incurred on the account of such Person;
(v) obligations or liabilities of such Person arising under acceptance
facilities; (vi) obligations of such Person under any guaranties, endorsements
(other than for collection or deposit in the ordinary course of business) and
other contingent obligations to purchase, to provide funds for payment, to
supply funds to invest in any Person or otherwise to assure a creditor against
loss; (vii) obligations of such Person secured by any lien on property or assets
of

                                      -3-
<PAGE>
such Person, whether or not the obligations have been assumed by such Person; or
(viii) obligations of such Person under any interest rate or currency exchange
agreement.

      "INDENTURE" means this Indenture, as amended or supplemented from time to
time.

      "INDEPENDENT" when used with respect to any specified Person, means such a
Person who (i) is in fact independent of the Issuer, the Seller and any of their
respective Affiliates, (ii) is not a director, officer or employee of the
Issuer, the Seller or any of their respective Affiliates, (iii) is not a person
related to any officer or director of the Issuer, the Seller or any of their
respective Affiliates, (iv) is not a holder (directly or indirectly) of more
than 10% of any voting securities of the Issuer, the Seller or any of their
respective Affiliates, and (v) is not connected with the Issuer, the Seller or
any of their respective Affiliates as an officer, employee, promoter,
underwriter, trustee, partner, director or person performing similar functions.

      "INDEPENDENT CERTIFICATE" means a certificate or opinion to be delivered
to the Indenture Trustee under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 11.01, made by an
Independent appraiser or other expert appointed by an Issuer Order and approved
by the Indenture Trustee in the exercise of reasonable care, and such opinion or
certificate shall state that the signer has read the definition of "Independent"
in this Indenture and that the signer is Independent within the meaning thereof.

      "ISSUER ORDER" and "Issuer Request" means a written order or request
signed in the name of the Issuer by an Authorized Officer and delivered to the
Indenture Trustee.

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

      "NOTE REGISTER" and "Note Registrar" have the respective meanings
specified in Section 2.04.

      "OFFICER'S CERTIFICATE" means a certificate signed by an Authorized
Officer of the Issuer, under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 11.01, and delivered to,
the Indenture Trustee.

      "ONYX" means Onyx Acceptance Corporation, and its successors.

      "OPINION OF COUNSEL" means one or more written opinions of counsel who
may, except as otherwise expressly provided in this Indenture, be employees of
or counsel to the Depositor or the Issuer and who shall be satisfactory to the
Indenture Trustee and, if addressed to the Insurer, satisfactory to the Insurer,
and which shall comply with any applicable requirements of Section 11.01, and
shall be in form and substance satisfactory to the Indenture Trustee, and if
addressed to the Insurer, satisfactory to the Insurer.

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

                                      -4-
<PAGE>
      (i) Notes theretofore canceled by the Note Registrar or delivered to the
Note Registrar for cancellation;

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

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

provided, however, that in determining whether the Holders of the requisite
Outstanding Amount have given any request, demand, authorization, direction,
notice, consent or waiver hereunder or under any other Basic Document, Notes
owned by the Issuer, the Seller or any of their respective Affiliates shall be
disregarded and deemed not to be Outstanding, except that, in determining
whether the Indenture Trustee shall be protected in relying upon any such
request, demand, authorization, direction, notice, consent or waiver, only Notes
that the Indenture Trustee knows to be so owned shall be so disregarded. Notes
so owned that have been pledged in good faith may be regarded as Outstanding if
the pledgee establishes to the satisfaction of the Indenture Trustee the
pledgee's right so to act with respect to such Notes and that the pledgee is not
the Issuer, the Seller or any of their respective Affiliates.

      "OUTSTANDING AMOUNT" means the aggregate principal amount of all Notes of
one Class or of all Classes, as the case may be, Outstanding at the date of
determination.

      "PAYING AGENT" means the Indenture Trustee or any other Person that meets
the eligibility standards for the Indenture Trustee specified in Section 6.11
and is authorized by the Issuer to make the distributions from the Note
Distribution Account, including payment of principal of or interest on the Notes
on behalf of the Issuer.

      "PREDECESSOR NOTE" means, with respect to any particular Note, every
previous Note evidencing all or a portion of the same debt as that evidenced by
such particular Note; and, for the purpose of this definition, any Note
authenticated and delivered under Section 2.05 in lieu of a mutilated, lost,
destroyed or stolen Note shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Note.

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

      "PROTECTED PURCHASER" shall have the meaning given such term in the UCC.

         "RATING AGENCY CONDITION" means, with respect to any action, that (i)
Standard & Poor's shall have been given ten Business Days (or such shorter
period as is acceptable to Standard & Poor's) prior notice thereof and that
Standard & Poor's shall have notified the Seller, the Servicer, the Insurer and
the Issuer in writing that such action will not result in a qualification,
reduction or withdrawal of its then-current rating of any Class of Notes, (ii)

                                      -5-
<PAGE>
Moody's shall have been given ten Business Days (or such shorter period as is
acceptable to Moody's) prior notice thereof and copies of all documentation
relating to the event requiring such Rating Agency Condition and (iii) each
Rating Agency shall have confirmed to the Insurer that the shadow risk of the
Insurer with respect to the Notes is investment grade.

      "RATING EVENT" means the qualification, reduction or withdrawal by either
Rating Agency of its then-current rating of any Class of Notes.

      "RECORD DATE" means, with respect to a Distribution Date or Redemption
Date, the close of business on the Business Day immediately preceding such
Distribution Date or Redemption Date, or, in the event that Definitive Notes are
issued, the close of business on the last day of the calendar month immediately
preceding the month in which such Distribution Date or Redemption Date occurs.

      "REDEMPTION DATE" means the Distribution Date specified by the Servicer or
the Issuer pursuant to Section 10.01.

      "REDEMPTION PRICE" means an amount equal to the Outstanding Amount of the
Notes redeemed plus accrued and unpaid interest thereon at the respective
Interest Rates of each Class of Notes being so redeemed to but excluding the
Redemption Date.

      "REGISTERED HOLDER" means the Person in whose name a Note is registered on
the Note Register on the applicable Record Date.

      "SALE AND SERVICING AGREEMENT" means the Sale and Servicing Agreement,
dated as of the date hereof, between the Issuer, the Seller, the Servicer, the
Indenture Trustee and the Trust Agent.

      "STATE" means any one of the 50 states of the United States or the
District of Columbia.

      "SUCCESSOR SERVICER" shall have the meaning specified in Section 3.07(e).

      "TERMINATION DATE" means the latest of (i) the expiration of the Policy
and the return of the Policy to the Insurer for cancellation, (ii) the date on
which the Insurer shall have received payment and performance of all amounts and
obligations which the Issuer may owe to or on behalf of the Insurer under this
Indenture and (iii) the date on which the Indenture Trustee shall have received
payment and performance of all amounts and obligations which the Issuer may owe
to or on behalf of the Indenture Trustee for the benefit of the Noteholders
under this Indenture or the Notes.

      "TRUST AGENT" means Citibank, N.A., as agent of the Owner Trustee under
the Trust Agreement, and any successor Trust Agent thereunder.

      "TRUST AGREEMENT" means the Trust Agreement, dated as of May 1, 2003,
among the Seller, the Owner Trustee and the Trust Agent.

      "TRUST INDENTURE ACT" or "TIA" means the Trust Indenture Act of 1939, as
amended, as in force on the date hereof, unless otherwise specifically provided.

                                      -6-
<PAGE>
      "UNITED STATES" means the United States of America.

      Section 1.02 Incorporation by Reference of Trust Indenture Act. Whenever
this Indenture refers to a provision of the TIA, the provision is incorporated
by reference in and made a part of this Indenture. The following TIA terms used
in this Indenture have the following meanings:

      "COMMISSION" means the Securities and Exchange Commission.

      "INDENTURE SECURITIES" means the Notes.

      "INDENTURE TO BE QUALIFIED" means this Indenture.

      "INDENTURE TRUSTEE" or "INSTITUTIONAL TRUSTEE" means the Indenture
Trustee.

      "OBLIGOR" on the indenture securities means the Issuer and any other
obligor on the indenture securities.

      All other TIA terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by Commission rule have
the meaning assigned to them by such definitions.

               Section 1.03 Rules of Construction. Unless the context otherwise
requires:

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

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

               (iii) "or" is not exclusive;

               (iv) "including" means including without limitation;

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

               (vi) any agreement, instrument or statute defined or referred to
      herein or in any instrument or certificate delivered in connection
      herewith means such agreement, instrument or statute as from time to time
      amended, modified or supplemented and includes (in the case of agreements
      or instruments) references to all attachments thereto and instruments
      incorporated therein; references to a Person are also to its permitted
      successors and assigns; and

               (vii) the words "hereof," "herein" and "hereunder" and words of
      similar import when used in this Indenture shall refer to this Indenture
      as a whole and not to any particular provision of this Indenture; Section,
      subsection and Schedule

                                      -7-
<PAGE>
      references contained in this Indenture are references to Sections,
      subsections and Schedules in or to this Indenture unless otherwise
      specified.

      Section 1.04 Accounting Terms. All accounting terms used but not
specifically defined herein shall be construed in accordance with generally
accepted accounting principles in the United States of America.

                                   ARTICLE II

                                    THE NOTES

      Section 2.01 Form. The Class A-1 Notes, the Class A-2 Notes, the Class A-3
Notes and the Class A-4 Notes, in each case together with the Indenture
Trustee's certificate of authentication, shall be in substantially the forms set
forth as Exhibits B, C, D and E to this Indenture with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may,
consistently herewith, be determined by the officers executing such Notes, as
evidenced by their execution of the Notes. Any portion of the text of any Note
may be set forth on the reverse thereof, with an appropriate reference thereto
on the face of the Note.

      Each Note shall be dated the date of its authentication. The terms of the
Notes set forth in Exhibits B, C, D and E hereto are part of the terms of this
Indenture.

      Section 2.02 Execution, Authentication and Delivery. The Notes shall be
executed on behalf of the Issuer by an Authorized Officer of the Owner Trustee,
as provided in the Trust Agreement. The signature of any such Authorized Officer
on the Notes may be manual or facsimile. Notes bearing the manual or facsimile
signature of individuals who were at any time Authorized Officers of the Issuer
shall bind the Issuer, notwithstanding that such individuals or any of them have
ceased to hold such offices prior to the authentication and delivery of such
Notes or did not hold such offices at the date of such Notes.

      The Indenture Trustee shall, upon receipt of an Issuer Order, authenticate
and deliver for original issue the following aggregate principal amount of
Notes: (i) $74,800,000 of Class A-1 Notes, (ii) $99,000,000 of Class A-2 Notes,
(iii) $122,000,000 of Class A-3 Notes, and (iv) $104,200,000 of Class A-4 Notes.
The aggregate principal amount of Class A-1 Notes, Class A-2 Notes, Class A-3
Notes and Class A-4 Notes outstanding at any time may not exceed such respective
amounts, except as otherwise provided in Section 2.05.

      Each Note shall be dated the date of its authentication. The Notes shall
be issuable as registered notes in the minimum denomination of $1,000 and in
integral multiples of $1,000 in excess thereof, except that one Note of each
Class may be issued in a different denomination.

      No Note shall be entitled to any benefit under this Indenture or be valid
or obligatory for any purpose, unless there appears on such Note a certificate
of authentication substantially in the form provided for in the forms of Notes
attached as exhibits to this Indenture executed by the Indenture Trustee by the
manual signature of one of its authorized signatories, and such

                                      -8-
<PAGE>
certificate upon any Note shall be conclusive evidence, and the only evidence,
that such Note has been duly authenticated and delivered hereunder.

      Section 2.03 Temporary Notes. Pending the preparation of definitive Notes,
the Issuer may execute, and upon receipt of an Issuer Order the Indenture
Trustee shall authenticate and deliver, temporary Notes that are printed,
lithographed, typewritten, mimeographed or otherwise produced, of the tenor of
the definitive Notes in lieu of which they are issued and with such variations
not inconsistent with the terms of this Indenture as the officers executing such
Notes may determine, as evidenced by their execution of such Notes.

      If temporary Notes are issued, the Issuer will cause definitive Notes to
be prepared without unreasonable delay. After the preparation of definitive
Notes, the temporary Notes shall be exchangeable for definitive Notes upon
surrender of the temporary Notes at the office or agency of the Issuer to be
maintained as provided in Section 3.02, without charge to the Holder. Upon
surrender for cancellation of any one or more temporary Notes, the Issuer shall
execute and the Indenture Trustee shall authenticate and deliver in exchange
therefor a like tenor and principal amount of definitive Notes of authorized
denominations. Until so exchanged, the temporary Notes shall in all respects be
entitled to the same benefits under this Indenture as definitive Notes.

      Section 2.04 Registration; Registration of Transfer and Exchange. The
Issuer shall cause to be kept a register (the "NOTE REGISTER") in which, subject
to such reasonable regulations as it may prescribe, the Issuer shall provide for
the registration of Notes and the registration of transfers of Notes. The
Indenture Trustee shall be "NOTE REGISTRAR" for the purpose of registering Notes
and transfers of Notes as herein provided. Upon any resignation of any Note
Registrar, the Issuer shall promptly appoint a successor or, if it elects not to
make such an appointment, assume the duties of Note Registrar.

      If a Person other than the Indenture Trustee is appointed by the Issuer as
Note Registrar, the Issuer will give the Indenture Trustee prompt written notice
of the appointment of such Note Registrar and of the location, and any change in
the location, of the Note Register, and the Indenture Trustee shall have the
right to inspect the Note Register at all reasonable times and to obtain copies
thereof, and the Indenture Trustee shall have the right to rely upon a
certificate executed on behalf of the Note Registrar by an Executive Officer
thereof as to the names and addresses of the Holders of the Notes and the
principal amounts and number of such Notes.

      Upon surrender for registration of transfer of any Note at the office or
agency of the Issuer to be maintained as provided in Section 3.02, the Issuer
shall execute, and the Indenture Trustee shall authenticate and the Noteholder
shall obtain from the Indenture Trustee, in the name of the designated
transferee or transferees, one or more new Notes of the same Class in any
authorized denominations, of a like aggregate principal amount.

      At the option of the Holder, Notes may be exchanged for other Notes of the
same Class in any authorized denominations, of a like aggregate principal
amount, upon surrender of the Notes to be exchanged at such office or agency.
Whenever any Notes are so surrendered for exchange, the Issuer shall execute,
and the Indenture Trustee shall authenticate and the Noteholder shall

                                      -9-
<PAGE>
obtain from the Indenture Trustee, the Notes which the Noteholder making the
exchange is entitled to receive.

      All Notes issued upon any registration of transfer or exchange of Notes
shall be the valid obligations of the Issuer, evidencing the same debt, and
entitled to the same benefits under this Indenture, as the Notes surrendered
upon such registration of transfer or exchange.

      Every Note presented or surrendered for registration of transfer or
exchange shall be duly endorsed by, or be accompanied by a written instrument of
transfer in form satisfactory to the Indenture Trustee duly executed by, the
Holder thereof or such Holder's attorney duly authorized in writing, with such
signature guaranteed by a commercial bank or trust company located, or having a
correspondent located, in the city of New York or the city in which the
Corporate Trust Office is located, or by a member firm of a national securities
exchange, and such other documents as the Indenture Trustee may require.

      No service charge shall be made to a Holder for any registration of
transfer or exchange of Notes, but the Issuer or the Indenture Trustee may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or
exchange of Notes, other than exchanges pursuant to Section 2.03 or 9.06 not
involving any transfer.

      The preceding provisions of this Section notwithstanding, the Issuer shall
not be required to make and the Note Registrar need not register transfers or
exchanges of Notes selected for redemption or of any Note for a period of 15
days preceding the due date for any payment with respect to the Note.

      Section 2.05 Mutilated, Destroyed, Lost or Stolen Notes. If (i) the
Indenture Trustee receives evidence to its satisfaction of the destruction, loss
or theft of any Note and the Indenture Trustee and the Insurer (unless an
Insurer Default shall have occurred and be continuing) receive such security or
indemnity as may be required by them to hold the Issuer, the Indenture Trustee
and the Insurer harmless, or (ii) any mutilated Note is surrendered to the
Indenture Trustee, then, in the absence of notice to the Issuer, the Note
Registrar or the Indenture Trustee that such Note has been acquired by a
Protected Purchaser, and if the requirements of Section 8-406 of the UCC are met
and subject to Section 8-405 of the UCC, the Issuer shall execute and upon its
request the Indenture Trustee shall authenticate and deliver, in exchange for or
in lieu of any such mutilated, destroyed, lost or stolen Note, a replacement
Note of the same Class; provided, however, that if any such destroyed, lost or
stolen Note, but not a mutilated Note, shall have become or within seven days
shall be due and payable, or shall have been called for redemption, instead of
issuing a replacement Note, the Issuer may pay such destroyed, lost or stolen
Note when so due or payable or upon the Redemption Date without surrender
thereof. If, after the delivery of such replacement Note or payment of a
destroyed, lost or stolen Note pursuant to the proviso to the preceding
sentence, a Protected Purchaser of the original Note in lieu of which such
replacement Note was issued presents for payment such original Note, the Issuer,
the Insurer and the Indenture Trustee shall be entitled to recover such
replacement Note (or such payment) from the Person to whom it was delivered or
any Person taking such replacement Note from such Person to whom such
replacement Note was delivered or any assignee of such Person, except a
Protected Purchaser, and shall be entitled to recover upon the

                                      -10-
<PAGE>
security or indemnity provided therefor to the extent of any loss, damage, cost
or expense incurred by the Issuer, the Insurer or the Indenture Trustee in
connection therewith.

      Upon the issuance of any replacement Note under this Section, the Issuer
or the Indenture Trustee may require the payment by the Holder of such Note of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in relation thereto and any other reasonable expenses (including the fees and
expenses of the Indenture Trustee or the Note Registrar) connected therewith.

      Every replacement Note issued pursuant to this Section in replacement of
any mutilated, destroyed, lost or stolen Note shall constitute an original
additional contractual obligation of the Issuer, whether or not the mutilated,
destroyed, lost or stolen Note shall be at any time enforceable by anyone, and
shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.

      The provisions of this Section are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Notes.

               Section 2.06 Persons Deemed Owner. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Indenture Trustee, the
Insurer and any of their respective agents may treat the Person in whose name
any Note is registered (as of the day of determination) as the owner of such
Note for the purpose of receiving payments of principal of and interest, if any,
on such Note and for all other purposes whatsoever, whether or not such Note be
overdue, and none of the Issuer, the Insurer, the Indenture Trustee nor any of
their respective agents shall be affected by notice to the contrary.

               Section 2.07 Payment of Principal and Interest; Defaulted
Interest.

               (a) Each Class of Notes shall accrue interest during each
Interest Accrual Period at the related Interest Rate, and such interest shall be
payable on each Distribution Date as specified in such Notes, subject to Section
3.01 and the priority of payments set forth in Section 8.02(c). Interest accrued
on any Note but not paid on any Distribution Date will be due on the immediately
succeeding Distribution Date, together with, to the extent permitted by
applicable law, interest on such shortfall at the related Interest Rate.
Interest on the Notes shall be calculated on the basis of a 360-day year of
twelve 30-day months, except for the Class A-1 Notes, which shall be calculated
on the basis of a 360-day year and the actual number of days in the related
Interest Accrual Period. Any installment of interest or principal, if any,
payable on any Note which is punctually paid or duly provided for by the Issuer
on the applicable Distribution Date shall be paid to the Person in whose name
such Note (or one or more Predecessor Notes) is registered on the Record Date,
by check mailed first-class, postage prepaid to such Person's address as it
appears on the Note Register on such Record Date, except that, unless Definitive
Notes have been issued pursuant to Section 2.11, with respect to Notes
registered on the Record Date in the name of the nominee of the Clearing Agency
(initially, such nominee to be Cede & Co.), payment will be made by wire
transfer in immediately available funds to the account designated by such
nominee and except for the final installment of principal payable with respect
to such Note on a Distribution Date, a Redemption Date or on the related

                                      -11-
<PAGE>
Final Scheduled Distribution Date, as the case may be (and except for the
Redemption Price for any Note called for redemption pursuant to Section 10.01),
which shall be payable as provided below. The funds represented by any such
checks returned undelivered shall be held in accordance with Section 3.03.

      (b) The principal of each Note shall be payable on each Distribution Date
to the extent provided in the form of the related Note set forth as an Exhibit
hereto. Notwithstanding the foregoing, the entire unpaid principal amount of the
Notes of a Class of Notes shall be due and payable, if not previously paid, on
the earlier of:

               (i) the Note Final Scheduled Distribution Date of such Class;

               (ii) the Redemption Date;

               (iii) if an Event of Default shall have occurred and be
      continuing, so long as an Insurer Default shall not have occurred and be
      continuing, the date on which the Insurer shall have declared the Notes to
      be immediately due and payable in the manner provided in Section 5.02; or

               (iv) if an Event of Default shall have occurred and be continuing
      and if an Insurer Default has occurred and is continuing, the date on
      which Holders representing not less than 66-2/3% of the Outstanding Amount
      of the Notes, acting together as a single Class, have declared the Notes
      to be immediately due and payable in the manner provided in Section 5.02.

All principal payments on each Class of Notes shall be made pro rata to the
Noteholders of such Class entitled thereto. The Indenture Trustee shall notify
the Person in whose name a Note is registered at the close of business on the
Record Date preceding the Distribution Date on which the Issuer expects that the
final installment of principal, of and interest on, such Note will be paid. Such
notice shall be mailed within five Business Days of such Distribution Date (or,
in the case of Notes registered in the name of Cede & Co., as nominee of DTC,
such notice shall be provided within one Business Day of such Distribution Date)
or receipt of notice of termination of the Trust pursuant to Section 9.01(c) of
the Trust Agreement and shall specify that such final installment will be
payable only upon presentation and surrender of such Note and shall specify the
place where such Note may be presented and surrendered for payment of such
installment. Notices in connection with redemptions of Notes shall be mailed to
Noteholders as provided in Section 10.02. In addition, the Administrator shall
notify the Insurer and the Rating Agencies upon the final payment of interest
and principal of each Class of Notes, and upon the termination of the Trust, in
each case pursuant to the Administration Agreement.

      Section 2.08 Cancellation. All Notes surrendered for payment, registration
of transfer, exchange or redemption shall, if surrendered to any Person other
than the Indenture Trustee, be delivered to the Indenture Trustee and shall be
promptly canceled by the Indenture Trustee. The Issuer may at any time deliver
to the Indenture Trustee for cancellation any Notes previously authenticated and
delivered hereunder which the Issuer may have acquired in any manner whatsoever,
and all Notes so delivered shall be promptly canceled by the Indenture Trustee.
No Notes shall be authenticated in lieu of or in exchange for any Notes canceled
as

                                      -12-
<PAGE>
provided in this Section, except as expressly permitted by this Indenture. All
canceled Notes may be held or disposed of by the Indenture Trustee in accordance
with its standard retention or disposal policy as in effect at the time unless
the Issuer shall direct by an Issuer Order that they be destroyed or returned to
it; provided that such Issuer Order is timely and the Notes have not been
previously disposed of by the Indenture Trustee.

      Section 2.09 Book-Entry Notes. The Notes, upon original issuance, will be
issued in the form of a typewritten Note or Notes representing the Book-Entry
Notes, to be delivered to DTC, the initial Depository, by, or on behalf of, the
Issuer. Such Notes shall initially be registered on the Note Register in the
name of Cede & Co., the nominee of the initial Clearing Agency, and no Note
Owner will receive a Definitive Note representing such Note Owner's interest in
such Note, except as provided in Section 2.11. Unless and until definitive,
fully registered Notes (the "DEFINITIVE NOTES") have been issued to Note Owners
pursuant to Section 2.11:

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

               (ii) the Note Registrar and the Indenture Trustee shall be
      entitled to deal with the Clearing Agency for all purposes of this
      Indenture (including the payment of principal of and interest on the Notes
      and the giving of instructions or directions hereunder) as the sole Holder
      of the Notes, and shall have no obligation to the Note Owners;

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

               (iv) the rights of Note Owners shall be exercised only through
      the Clearing Agency and shall be limited to those established by law and
      agreements between such Note Owners and the Clearing Agency and/or the
      Clearing Agency participants. Pursuant to the Depository Agreement, unless
      and until Definitive Notes are issued pursuant to Section 2.11, the
      Clearing Agency will make book-entry transfers among the Clearing Agency
      participants and receive and transmit payments of principal of and
      interest on the Notes to such Clearing Agency participants; and

               (v) whenever this Indenture requires or permits actions to be
      taken based upon instructions or directions of Holders of Notes evidencing
      a specified percentage of the Outstanding Amount, the Clearing Agency
      shall be deemed to represent such percentage only to the extent that it
      has received instructions to such effect from Note Owners and/or Clearing
      Agency participants owning or representing, respectively, such required
      percentage of the beneficial interest in the Notes and has delivered such
      instructions to the Indenture Trustee.

      Section 2.10 Notices to Clearing Agency. Whenever a notice or other
communication to the Noteholders is required under this Indenture, unless and
until Definitive Notes shall have been issued to Note Owners pursuant to Section
2.11, the Indenture Trustee

                                      -13-
<PAGE>
shall give all such notices and communications specified herein to be given to
Holders of the Notes to the Clearing Agency, and shall have no obligation to the
Note Owners.

      Section 2.11 Definitive Notes. If (i) the Administrator advises the
Indenture Trustee in writing that the Clearing Agency is no longer willing or
able to properly discharge its responsibilities as described in the Depository
Agreement, and the Administrator or the Indenture Trustee is unable to locate a
qualified successor, or (ii) after the occurrence of an Event of Default or a
Servicer Default, Note Owners representing in the aggregate more than 50% of the
Outstanding Amount of all Classes of Notes advise the Indenture Trustee through
the Clearing Agency participants in writing that the continuation of a
book-entry system through the Clearing Agency is no longer in the best interests
of the related Note Owners, then the Indenture Trustee shall notify all Note
Owners, through the Clearing Agency, of the availability of Definitive Notes to
Note Owners requesting the same. Upon surrender to the Indenture Trustee of the
Note or Notes evidencing the Book Entry Notes by the Clearing Agency,
accompanied by registration instructions from the Clearing Agency, the Issuer
shall execute and the Indenture Trustee shall authenticate the Definitive Notes
and deliver such Definitive Notes in accordance with the instructions of the
Clearing Agency. None of the Issuer, the Note Registrar or the Indenture Trustee
shall be liable for any delay in delivery of such instructions and may
conclusively rely on, and shall be protected in relying on, such instructions.
Upon the issuance of Definitive Notes of a Class, the Indenture Trustee shall
recognize the Holders of the Definitive Notes as Noteholders hereunder.

      The Indenture Trustee shall not be liable if the Indenture Trustee or the
Administrator is unable to locate a qualified successor Clearing Agency. The
Definitive Notes shall be typewritten, printed, lithographed or engraved or
produced by any combination of these methods (with or without steel engraved
borders), all as determined by the officers executing such Notes, as evidenced
by their execution of such Notes.

      Section 2.12 Release of Collateral. Subject to Section 11.01 and the terms
of the Basic Documents, the Indenture Trustee shall release Collateral from the
lien of this Indenture only upon receipt of an Issuer Request accompanied by an
Officer's Certificate, an Opinion of Counsel and Independent Certificates in
accordance with Sections 314(c) and 314(d)(l) of the TIA or an Opinion of
Counsel in lieu of such Independent Certificates to the effect that the TIA does
not require any such Independent Certificates.

      Section 2.13 Tax Treatment. The Issuer has entered into this Indenture,
and the Notes will be issued, with the intention that, for federal, state and
local income, single business and franchise tax purposes, the Notes will qualify
as indebtedness of the Issuer secured by the Collateral. The Issuer, by entering
into this Indenture, and each Noteholder, by its acceptance of its Note (and
each Note Owner by its acceptance of an interest in the applicable Book-Entry
Note), agree to treat the Notes for federal, state and local income, single
business and franchise tax purposes as indebtedness of the Issuer.
Notwithstanding such treatment, the Issuer will withhold from amounts payable to
non-U.S. Note Holders pursuant to Section 3.03(a)(v).

      Section 2.14 ERISA. Each purchaser or transferee of a Note that is a
Benefit Plan shall be deemed to have represented that the relevant conditions
for exemptive relief under Prohibited Transaction Class Exemption ("PTCE")
84-14, PTCE 90-1, PTCE 91-38, PTCE 95-

                                      -14-
<PAGE>
60 or PTCE 96-23 or other applicable exemption providing substantially similar
relief have been satisfied or has provided a written representation to the
Issuer satisfactory to the Issuer in lieu thereof.

                                  ARTICLE III

                                    COVENANTS

      Section 3.01 Payment of Principal and Interest. The Issuer will duly and
punctually pay the principal of and interest, if any, on the Notes in accordance
with the terms of the Notes and this Indenture. Without limiting the foregoing,
subject to Section 8.02(c), the Issuer will cause to be distributed all amounts
on deposit in the Note Distribution Account on a Distribution Date deposited
therein pursuant to the Sale and Servicing Agreement for the benefit of (i) the
Class A-1 Notes, to the Class A-1 Noteholders, (ii) the Class A-2 Notes, to the
Class A-2 Noteholders, (iii) the Class A-3 Notes, to the Class A-3 Noteholders,
and (iv) the Class A-4 Notes, to the Class A-4 Noteholders. Amounts properly
withheld under the Code by any Person from a payment to any Noteholder of
interest and/or principal shall be considered as having been paid by the Issuer
to such Noteholder for all purposes of this Indenture.

      Section 3.02 Maintenance of Office or Agency. The Issuer will or will
cause the Administrator or the Indenture Trustee to maintain in The City of New
York, an office or agency where Notes may be surrendered for registration of
transfer or exchange, and where notices and demands to or upon the Issuer in
respect of the Notes and this Indenture may be served. The Issuer hereby
initially appoints the Indenture Trustee to serve as its agent for the foregoing
purposes. The Issuer will give prompt written notice to the Indenture Trustee of
the location, and of any change in the location, of any such office or agency.
If at any time the Issuer shall fail to maintain any such office or agency or
shall fail to furnish the Indenture Trustee with the address thereof, such
surrenders, notices and demands may be made or served at the Corporate Trust
Office, and the Issuer hereby appoints the Indenture Trustee as its agent to
receive all such surrenders, notices and demands.

      Section 3.03 Money for Payments to be Held in Trust. As provided in
Section 8.02, all payments of amounts due and payable with respect to any Notes
that are to be made from amounts withdrawn from the Note Distribution Account
after required transfers thereto from the other Trust Accounts shall be made on
behalf of the Issuer by the Paying Agent (including the Indenture Trustee when
serving as a Paying Agent), and no amounts so withdrawn from the Note
Distribution Account for payments of Notes shall be paid over to the Issuer
except as provided in this Section.

      The Notes shall be non-recourse obligations of the Issuer and shall be
limited in right of payment to amounts available from the Collateral and the
Policy as provided in this Indenture and the Issuer shall not otherwise be
liable for payments on the Notes. No Person shall be personally liable for any
amounts payable under the Notes. If any other provision of this Indenture
conflicts or is deemed to conflict with the provisions of this paragraph, the
provisions of this paragraph shall control.

                                      -15-
<PAGE>
      On the Business Day immediately preceding each Distribution Date, the
Servicer shall cause funds to be withdrawn from the Collection Account and
deposited into the Payment Account pursuant to Section 4.02(e) of the Sale and
Servicing Agreement, and on each Distribution Date, the Indenture Trustee shall
make the deposits to the Note Distribution Account required by Section 4.03(a)
of the Sale and Servicing Agreement.

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

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

               (ii) give the Indenture Trustee notice of any default by the
      Issuer (or any other obligor upon the Notes) in the making of any payment
      required to be made with respect to the Notes;

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

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

               (v) comply with all requirements of the Code with respect to the
      withholding from any payments made by it on any Notes of any applicable
      withholding taxes imposed thereon and with respect to any applicable
      reporting requirements in connection therewith.

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

      Subject to applicable laws with respect to escheat of funds, any money
held by the Indenture Trustee or any Paying Agent in trust for the payment of
any amount due with respect to any Note and remaining unclaimed for two years
after such amount has become due and payable shall be discharged from such trust
and be paid to the Issuer upon receipt of an Issuer Request; and the Holder of
such Note shall thereafter, as an unsecured general creditor, look only to the
Issuer for payment thereof, and all liability of the Indenture Trustee or such
Paying Agent with respect to such trust money shall thereupon cease; provided,
however, that the Indenture

                                      -16-
<PAGE>
Trustee or such Paying Agent, before being required to make any such repayment,
shall at the expense and direction of the Issuer cause to be published once, in
a newspaper published in the English language, customarily published on each
Business Day and of general circulation in The City of New York, notice that
such money remains unclaimed and that, after a date specified therein, which
shall not be less than 30 days from the date of such publication, any unclaimed
balance of such money then remaining will be repaid to or for the account of the
Issuer. The Indenture Trustee may also adopt and employ, at the expense of the
Issuer, any other reasonable means of notification of such repayment (including,
but not limited to, mailing notice of such repayment to Holders whose Notes have
been called but have not been surrendered for redemption or whose right to or
interest in monies due and payable but not claimed is determinable from the
records of the Indenture Trustee or of any Paying Agent, at the last address of
record for each such Holder).

      Section 3.04 Existence. The Issuer will keep in full effect its existence,
rights and franchises as a statutory trust under the laws of the State of
Delaware (unless it becomes, or any successor Issuer hereunder is or becomes,
organized under the laws of any other state or of the United States, in which
case the Issuer will keep in full effect its existence, rights and franchises
under the laws of such other jurisdiction) and will obtain and preserve its
qualification to do business in each jurisdiction in which such qualification is
or shall be necessary to protect the validity and enforceability of this
Indenture, the Notes, and the Collateral.

      Section 3.05 Protection of Collateral. The Issuer intends the security
interest Granted pursuant to this Indenture in favor of the Indenture Trustee on
behalf of the Noteholders to be prior to all other liens in respect of the
Collateral, and the Issuer shall take all actions necessary to obtain and
maintain, for the benefit of the Indenture Trustee on behalf of the Noteholders,
a first lien on and a first priority, perfected security interest in the
Collateral. The Issuer will from time to time execute or authorize, as
applicable, and deliver all such supplements and amendments hereto and all such
financing statements, continuation statements, instruments of further assurance
and other instruments, all as prepared by the Servicer and delivered to the
Issuer, and will take such other action necessary or advisable to:

               (i) Grant more effectively all or any portion of the Collateral;

               (ii) maintain or preserve the lien and security interest (and the
      priority thereof) created by this Indenture or carry out more effectively
      the purposes hereof;

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

               (iv) enforce any of the Collateral;

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

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

                                      -17-
<PAGE>
The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact to execute all financing statements, continuation statements or
other instruments required to be executed pursuant to this Section and the
Indenture Trustee shall execute all financing statements, continuation
statements or other instruments required to be executed pursuant to this section
upon written notice and instructions from the Issuer.

      Section 3.06 Opinions as to Contracts

      (a) Promptly after the execution and delivery of this Indenture, the
Issuer shall furnish to the Indenture Trustee and the Insurer an Opinion of
Counsel to the effect that, in the opinion of such counsel, either (i) all
financing statements and continuation statements have been authorized and filed
that are necessary to perfect the Indenture Trustee's first priority perfected
security interest in the Collateral (subject to the rights of the Insurer under
the Insurance Agreement) for the benefit of the Noteholders, and reciting the
details of such filings or referring to prior Opinions of Counsel in which such
details are given, or (ii) no such action shall be necessary to perfect such
security interest.

      (b) Within 90 days after the beginning of each calendar year beginning
with the first calendar year beginning more than three months after the Closing
Date, the Issuer shall furnish to the Indenture Trustee and the Insurer an
Opinion of Counsel, dated as of a date during such 90-day period, to the effect
that, in the opinion of such counsel, either (i) all financing statements and
continuation statements have been executed and filed that are necessary to
continue the Indenture Trustee's first priority perfected security interest in
the Collateral (subject to the rights of the Insurer under the Insurance
Agreement) for the benefit of the Noteholders, and reciting the details of such
filings or referring to prior Opinions of Counsel in which such details are
given, or (ii) no such action shall be necessary to perfect such security
interest.

      Section 3.07 Performance of Obligations; Servicing of Contracts

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

      (b) The Issuer may contract with or otherwise obtain the assistance of
other Persons (including, without limitation, the Administrator under the
Administration Agreement) to assist it in performing its duties and obligations
under this Indenture, and any performance of such duties by a Person identified
to the Indenture Trustee and the Insurer in an Officer's Certificate shall be
deemed to be action taken by the Issuer. The Indenture Trustee shall not be
responsible for the action or inaction of the Servicer or the Administrator.
Initially, the Issuer has contracted with the Servicer and the Administrator to
assist the Issuer in performing its duties under this Indenture.

      (c) The Issuer will punctually perform and observe all of its obligations
and agreements contained in this Indenture, the other Basic Documents and in the
instruments and

                                      -18-
<PAGE>
agreements included in the Collateral, including but not limited to filing or
causing to be filed all UCC financing statements and continuation statements
required to be filed by the terms of this Indenture and the Sale and Servicing
Agreement in accordance with and within the time periods provided for herein and
therein. Except as otherwise expressly provided therein, the Issuer shall not
waive, amend, modify, supplement or terminate any Basic Document or any
provision thereof without the consent of the Indenture Trustee, the Insurer
(unless an Insurer Default shall have occurred and be continuing) and the
Holders of at least a majority of the Outstanding Amount of the Notes.

      (d) If the Issuer shall have actual knowledge of the occurrence of a
Servicer Default, the Issuer shall promptly notify the Indenture Trustee, the
Insurer and each Rating Agency thereof, and shall specify in such notice the
action, if any, the Issuer is taking with respect of such default. If a Servicer
Default shall arise from the failure of the Servicer to perform any of its
duties or obligations under the Sale and Servicing Agreement with respect to the
Contracts, the Issuer shall take all reasonable steps available to it to remedy
such failure.

      (e) Upon the termination of the Servicer or resignation of the Servicer,
the Back-up Servicer, if any, shall become the successor servicer under the Sale
and Servicing Agreement ("SUCCESSOR SERVICER"). If (x) upon the termination or
resignation of the Servicer, a Back-up Servicer has not been appointed, (y) the
Back-up Servicer on the date of its appointment as Successor Servicer or at any
time following such appointment fails or is legally unable to perform the duties
of the Servicer or has previously resigned or otherwise been terminated as
Back-up Servicer, or (y) any other Person designated Successor Servicer in
accordance with the Sale and Servicing Agreement, fails or is legally unable to
perform the duties of the Servicer following its appointment as Successor
Servicer, then the Insurer may appoint or, if the Insurer is not entitled to
appoint a Successor Servicer by operation of Section 9.08 of the Sale and
Servicing Agreement, the Indenture Trustee may appoint, or petition a court of
competent jurisdiction to appoint, any established financial institution, having
a net worth of not less than $50,000,000 and whose regular business shall
include the servicing of automotive retail installment sales contracts, as the
Successor Servicer. Until such time as the Person so appointed becomes obligated
to begin acting as Servicer, the then current Servicer will continue to perform
all servicing functions under the Sale and Servicing Agreement as Servicer or,
if the then current Servicer was terminated or is legally unable to continue
acting in such capacity, the Indenture Trustee shall act as Successor Servicer.
If the Indenture Trustee shall become Successor Servicer as provided herein, it
shall do so in such capacity and not in its capacity as Indenture Trustee and,
accordingly, the provisions of Article Six shall be inapplicable to the
Indenture Trustee in its duties as the Successor Servicer and the servicing of
the Contracts. In case the Indenture Trustee shall become Successor Servicer
under the Sale and Servicing Agreement, the Indenture Trustee shall be entitled
to appoint as Successor Servicer one of its Affiliates, provided that it shall
not be liable for the actions and omissions of any such Affiliate in such
capacity as Successor Servicer appointed with due care.

      Notwithstanding the foregoing, if the Servicer is terminated pursuant to
Section 7.01 of the Sale and Servicing Agreement or resigns pursuant to Section
6.04 of the Sale and Servicing Agreement, the Insurer may appoint a Successor
Servicer other than the Back-up Servicer, unless the Insurer is not entitled to
appoint a Successor Servicer by operation of Section 9.08 of the Sale and
Servicing Agreement.

                                      -19-
<PAGE>
      (f) Upon any termination of the Servicer's rights and powers pursuant to
the Sale and Servicing Agreement, the Issuer shall promptly notify the Indenture
Trustee and the Insurer. As soon as a Successor Servicer is appointed, the
Issuer shall notify the Indenture Trustee and the Insurer of such appointment,
specifying in such notice the name and address of such Successor Servicer.

      (g) The Issuer agrees that it will not waive timely performance or
observance by the Servicer or the Seller of their respective duties under the
Basic Documents: (i) without the prior consent of the Insurer (unless an Insurer
Default shall have occurred and be continuing) or (ii) if the effect thereof
would adversely affect the Holders of the Notes.

      Section 3.08 Negative Covenants. Until the Termination Date, the Issuer
shall not:

               (i) except as expressly permitted by the Basic Documents, sell,
      transfer, exchange or otherwise dispose of any of the properties or assets
      of the Issuer, including those included in the Collateral, unless directed
      to do so by the Indenture Trustee with the prior written consent of the
      Insurer;

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

               (iii) (A) permit the validity or effectiveness of this Indenture
      to be impaired, or permit the lien created by this Indenture to be
      amended, hypothecated, subordinated, terminated or discharged, or permit
      any Person to be released from any covenants or obligations with respect
      to the Notes under this Indenture except as may be expressly permitted
      hereby, (B) permit any lien, charge, excise, claim, security interest,
      mortgage or other encumbrance (other than the lien of this Indenture) to
      be created on or extend to or otherwise arise upon or burden the
      Collateral or any part thereof or any interest therein or the proceeds
      thereof (other than tax liens, mechanics' liens and other liens that arise
      by operation of law, in each case on a Financed Vehicle and arising solely
      as a result of an action or omission of the related Obligor), (C) permit
      the lien created by this Indenture not to constitute a valid first
      priority (other than with respect to any such tax, mechanics' or other
      lien) security interest in the Collateral; or

               (iv) to the fullest extent permitted by applicable law, dissolve
      or liquidate in whole or in part.

      Section 3.09 Annual Statement as to Compliance. The Issuer will deliver to
the Indenture Trustee and the Insurer, on or before 120 days after the end of
each fiscal year of the Issuer (commencing with the fiscal year ended December
31, 2003), an Officer's Certificate stating, as to the Authorized Officer
signing such Officer's Certificate, that:

                                      -20-
<PAGE>
               (i) a review of the activities of the Issuer during such year and
      of performance under this Indenture has been made under such Authorized
      Officer's supervision; and

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

      Section 3.10 Issuer May Consolidate, etc. Only on Certain Terms.

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

               (i) the Person (if other than the Issuer) formed by or surviving
      such consolidation or merger shall be a Person organized and existing
      under the laws of the United States or any State and shall expressly
      assume, by an indenture supplemental hereto, executed and delivered to the
      Indenture Trustee and the Insurer, in form and substance satisfactory to
      the Indenture Trustee and the Insurer (so long as no Insurer Default shall
      have occurred and be continuing), the due and punctual payment of the
      principal of and interest on all Notes and the performance or observance
      of every agreement and covenant of this Indenture and each other Basic
      Document on the part of the Issuer to be performed or observed, all as
      provided herein;

               (ii) immediately after giving effect to such consolidation or
      merger, no Default or Event of Default shall have occurred and be
      continuing;

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

               (iv) the Issuer shall have received an Opinion of Counsel which
      shall be delivered to and shall be satisfactory to the Indenture Trustee
      and the Insurer to the effect that such consolidation or merger will not
      have any material adverse tax consequence to the Trust, the Insurer or any
      Noteholder;

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

               (vi) the Issuer shall have delivered to the Indenture Trustee and
      the Insurer an Officer's Certificate and an Opinion of Counsel (which
      shall describe the actions taken as required by clause (v) above or that
      no such actions will be taken) each stating that such consolidation or
      merger and such supplemental indenture comply with this Article III and
      that all conditions precedent herein provided for relating to such
      transaction have been compiled with (including any filings required by the
      Exchange Act); and

                                      -21-
<PAGE>
               (vii) so long as no Insurer Default shall have occurred and be
      continuing, the Issuer shall have given the Insurer written notice of such
      consolidation or merger at least 20 Business Days prior to the
      consummation of such action and shall have received the prior written
      approval of the Insurer of such consolidation or merger and the Issuer or
      the Person (if other than the Issuer) formed by or surviving such
      consolidation or merger has a net worth, immediately after such
      consolidation or merger, that is (A) greater than zero and (B) not less
      than the net worth of the Issuer immediately prior to giving effect to
      such consolidation or merger.

      (b) The Issuer shall not convey or transfer all or substantially all of
its properties or assets, including those included in the Collateral, to any
Person (except as expressly permitted by the Basic Documents), unless:

               (i) the Person that acquires by conveyance or transfer the
      properties and assets of the Issuer shall (A) be a United States citizen
      or a Person organized and existing under the laws of the United States or
      any State, (B) expressly assume, by an indenture supplemental hereto,
      executed and delivered to the Indenture Trustee and the Insurer, in form
      and substance satisfactory to the Indenture Trustee and the Insurer (so
      long as no Insurer Default shall have occurred and be continuing), the due
      and punctual payment of the principal of and interest on all Notes and the
      performance or observance of every agreement and covenant of this
      Indenture and each other Basic Document on the part of the Issuer to be
      performed or observed, all as provided herein, (C) expressly agree by
      means of such supplemental indenture that all right, title and interest so
      conveyed or transferred shall be subject and subordinate to the rights of
      Holders of the Notes, (D) unless otherwise provided in such supplemental
      indenture, expressly agree to indemnify, defend and hold harmless the
      Issuer against and from any loss, liability or expense arising under or
      related to this Indenture and the Notes and (E) expressly agree by means
      of such supplemental indenture that such Person (or if a group of Persons,
      then one specified Person) shall make all filings with the Commission (and
      any other appropriate Person) required by the Exchange Act in connection
      with the Notes;

               (ii) immediately after giving effect to such conveyance or
      transference, no Default or Event of Default shall have occurred and be
      continuing;

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

               (iv) the Issuer shall have received an Opinion of Counsel which
      shall be delivered to and shall be satisfactory to the Indenture Trustee
      and the Insurer (so long as no Insurer Default shall have occurred and be
      continuing) to the effect that such conveyance or transference will not
      have any material adverse tax consequence to the Trust, the Insurer or any
      Noteholder;

                                      -22-
<PAGE>
               (v) any action as is necessary to maintain the lien and security
      interest created by this Indenture shall have been taken;

               (vi) the Issuer shall have delivered to the Indenture Trustee and
      the Insurer an Officer's Certificate and an Opinion of Counsel (which
      shall describe the actions taken as required by clause (v) above or that
      no such actions will be taken) each stating that such conveyance or
      transference and such supplemental indenture comply with this Article III
      and that all conditions precedent herein provided for relating to such
      transaction have been complied with (including any filings required by the
      Exchange Act); and

               (vii) so long as no Insurer Default shall have occurred and be
      continuing, the Issuer shall have given the Insurer written notice of such
      conveyance or transfer of properties or assets at least 20 Business Days
      prior to the consummation of such action and shall have received the prior
      written approval of the Insurer of such conveyance or transfer and the
      Person acquiring by conveyance or transference the properties or assets of
      the Issuer has a net worth, immediately after such conveyance or transfer,
      that is (A) greater than zero and (B) not less than the net worth of the
      Issuer immediately prior to giving effect to such conveyance or transfer.

      Section 3.11 Successor Transferee

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

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

      Section 3.12 No Other Business. The Issuer shall not engage in (i) any
business other than financing, purchasing, owning, selling and managing the
Contracts in the manner contemplated by this Indenture and the other Basic
Documents and activities incidental thereto or (ii) any business or activities
other than those contemplated by Section 2.03 of the Trust Agreement. After the
termination of the Funding Period, the Issuer shall not fund the purchase of any
additional motor vehicle contracts.

      Section 3.13 Servicer's Obligations. The Issuer shall cause the Servicer
to comply with the Servicer's obligations under the Sale and Servicing
Agreement.

      Section 3.14 Restricted Payments. Except as expressly permitted by the
Basic Documents, the Issuer shall not, directly or indirectly, (i) pay any
dividend or make any distribution (by reduction of capital or otherwise),
whether in cash, property, securities or a combination thereof, to the Owner
Trustee or any owner of a beneficial interest in the Issuer or

                                      -23-
<PAGE>
otherwise with respect to any ownership or equity interest or security in or of
the Issuer or to the Servicer, (ii) redeem, purchase, retire or otherwise
acquire for value any such ownership or equity interest or security or (iii) set
aside or otherwise segregate any amounts for any such purpose; provided,
however, that the Issuer may make, or cause to be made, (A) distributions to the
Servicer, the Back-up Servicer, the Indenture Trustee, the Owner Trustee, the
Insurer, the Noteholders and the Holders of Residual Interest Instruments as
contemplated by, and to the extent funds are available for such purpose under,
the Sale and Servicing Agreement or the Trust Agreement and (B) payments to the
Indenture Trustee and the Owner Trustee pursuant to Section 1(a)(ii) of the
Administration Agreement. The Issuer will not, directly or indirectly, make
payments to or distributions from the Collection Account, the Note Distribution
Account, the Capitalized Interest Account, the Prefunding Account, the Spread
Account or the Payahead Account, except in accordance with this Indenture and
the other Basic Documents.

      Section 3.15 Notice of Events of Default. The Issuer agrees to give the
Indenture Trustee, the Trust Agent, the Insurer and each Rating Agency prompt
written notice of each Event of Default hereunder and each default on the part
of the Servicer or the Seller of their respective obligations under the Sale and
Servicing Agreement.

      Section 3.16 Further Instruments and Acts. Upon request of the Indenture
Trustee or the Insurer, the Issuer will execute and deliver such further
instruments and do such further acts as may be reasonably necessary or proper to
carry out more effectively the purpose of this Indenture.

      Section 3.17 Compliance with Laws. The Issuer shall comply with the
requirements of all applicable laws, the non-compliance with which would,
individually or in the aggregate, materially and adversely affect the ability of
the Issuer to perform its obligations under the Notes, this Indenture or any
other Basic Document.

      Section 3.18 Amendments of Sale and Servicing Agreement and Trust
Agreement. The Issuer shall not agree to any amendment to Section 9.01 of the
Sale and Servicing Agreement or Section 11.01 of the Trust Agreement to
eliminate the requirements thereunder that the Holders of the Notes consent to
amendments thereto as provided therein.

      Section 3.19 Representations and Warranties of the Issuer. The Issuer
hereby makes the following representations and warranties on which the Indenture
Trustee and the Noteholders may rely; provided such representations and
warranties speak as of the execution and delivery of this Indenture, but shall
survive the Grant of the Collateral to the Indenture Trustee pursuant to this
Indenture:

      (a) This Indenture creates a valid and continuing security interest (as
defined in the applicable UCC) in the Collateral in favor of the Indenture
Trustee, which security interest is prior to all other liens, and is enforceable
as such against creditors of and purchasers from the Issuer.

      (b) Onyx has certified to the Issuer that it has taken all steps necessary
to perfect the Issuer's security interest against the Obligors in the property
securing the Contracts.

                                      -24-
<PAGE>
      (c) The Contracts constitute "tangible chattel paper" within the meaning
of the applicable UCC.

      (d) The Issuer owns and has good and marketable title to the Collateral
free and clear of any lien, claim or encumbrance of any Person.

      (e) The Issuer has caused or will have caused, within ten days, the filing
of all appropriate financing statements in the proper filing office in the
appropriate jurisdictions under applicable law in order to perfect the security
interest Granted in the Collateral to the Indenture Trustee hereunder.

      (f) Other than the security interest Granted to the Indenture Trustee
pursuant to the Granting Clause of this Indenture, the Issuer has not Granted a
security interest in, or otherwise conveyed any of the Collateral. The Issuer
has not authorized the filing of and is not aware of any financing statements
against the Issuer that include a description of collateral covering the
Collateral other than any financing statement (i) relating to the security
interest Granted to the Indenture Trustee hereunder or (ii) that has been, or
will be within five days of the Closing Date, terminated. THE ISSUER IS NOT
AWARE OF ANY JUDGMENTS OR TAX FILINGS AGAINST THE ISSUER.

      (g) The Issuer has authorized Onyx, in its capacity as Custodian under the
Sale and Servicing Agreement, to maintain possession of all original copies of
the Contracts that constitute or evidence the Collateral and Onyx has certified
to the Issuer that the Contracts that constitute or evidence the Collateral do
not have any marks or notations indicating that they have been pledged, assigned
or otherwise conveyed to any Person other than the Indenture Trustee. All
financing statements filed or to be filed against the Issuer in favor of the
Indenture Trustee in connection herewith describing the Collateral contain a
statement to the following effect: "A purchase of or security interest in any
collateral described in this financing statement will violate the rights of the
Indenture Trustee."

      THE INDENTURE TRUSTEE HEREBY ACKNOWLEDGES AND AGREES THAT IT SHALL NOT
WAIVE ANY OF THE FOREGOING REPRESENTATIONS OR WARRANTIES.

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

      Section 4.01 Satisfaction and Discharge of Indenture. This Indenture shall
cease to be of further effect with respect to the Notes except as to (i) rights
of registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments
of principal thereof and interest thereon, (iv) Sections 3.03, 3.04, 3.05, 3.07,
3.08, 3.10, 3.11, 3.12, 3.17 and 3.18, (v) the rights, obligations and
immunities of the Indenture Trustee hereunder (including the rights of the
Indenture Trustee under Section 6.07 and the obligations of the Indenture
Trustee under Section 4.02), (vi) the rights of Noteholders as beneficiaries
hereof with respect to the property so deposited with the Indenture Trustee
payable to all or any of them and (vii) the obligation of the Indenture Trustee
to make claims under the Policy, which shall survive the Class A-4 Final
Scheduled Distribution Date

                                      -25-
<PAGE>
and extend through any preference period applicable with respect to the Notes or
any payments made in respect of the Notes, and the Indenture Trustee, on demand
of and at the expense of the Issuer, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture with respect to the
Notes, when

      (A) either

               (1) all Notes theretofore authenticated and delivered (other than
(i) Notes that have been destroyed, lost or stolen and that have been replaced
or paid as provided in Section 2.05 and (ii) Notes for whose payment money has
theretofore been deposited in trust or segregated and held in trust by the
Issuer and thereafter repaid to the Issuer or discharged from such trust, as
provided in Section 3.03) have been delivered to the Indenture Trustee for
cancellation and the Policy has expired and been returned to the Insurer for
cancellation; or

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

                        (i)   have become due and payable,

                        (ii)  will become due and payable at the Class A-4 Final
                              Scheduled Distribution Date within one year, or

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

and the Issuer, in the case of clauses (i), (ii) or (iii) above, has irrevocably
deposited or caused to be irrevocably deposited with the Indenture Trustee cash
or direct obligations of or obligations guaranteed by the United States (which
will mature prior to the date such amounts are payable), in trust in an Eligible
Account for such purpose, in an amount sufficient to pay and discharge the
entire indebtedness on such Notes not theretofore delivered to the Indenture
Trustee for cancellation when due to the Class A-4 Final Scheduled Distribution
Date or Redemption Date (if Notes shall have been called for redemption pursuant
to Section 10.01), as the case may be;

      (B) the Issuer has paid or performed or caused to be paid or performed all
amounts and obligations which the Issuer may owe to or on behalf of (1) the
Indenture Trustee for the benefit of the Noteholders under this Indenture or the
Notes and (2) the Insurer under this Indenture and the Basic Documents; and

      (C) the Issuer has delivered to the Indenture Trustee and the Insurer an
Officer's Certificate, an Opinion of Counsel and (if required by the TIA, the
Indenture Trustee) an Independent Certificate from a firm of certified public
accountants, each meeting the applicable requirements of Section 11.01(a) and,
subject to Section 11.02, each stating that all conditions precedent herein
provided for relating to the satisfaction and discharge of this Indenture have
been complied with and the Rating Agency Condition has been satisfied.

                                      -26-
<PAGE>
      Section 4.02 Application of Trust Money. All monies deposited with the
Indenture Trustee pursuant to Section 4.01 shall be held in trust and applied by
it, in accordance with the provisions of the Notes and this Indenture, to the
payment, either directly or through any Paying Agent, as the Indenture Trustee
may determine, to the Holders of the particular Notes for the payment or
redemption of which such monies have been deposited with the Indenture Trustee,
of all sums due and to become due thereon for principal and interest; but such
monies need not be segregated from other funds except to the extent required
herein or in the Sale and Servicing Agreement or required by law.

      Section 4.03 Repayment of Monies Held by Paying Agent. In connection with
the satisfaction and discharge of this Indenture with respect to the Notes, all
monies then held by any Paying Agent other than the Indenture Trustee under the
provisions of this Indenture with respect to such Notes shall, upon demand of
the Issuer, be paid to the Indenture Trustee to be held and applied according to
Section 3.03 and thereupon such Paying Agent shall be released from all further
liability with respect to such monies.

                                   ARTICLE V

                           EVENTS OF DEFAULT; REMEDIES

      Section 5.01 Events of Default. "EVENT OF DEFAULT," wherever used herein,
means any one of the following events (whatever the reason for such Event of
Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

      (a) the delivery to the Insurer of a claim for payment under the Policy;

      (b) default in the payment of any interest on any Note when the same
becomes due and payable, and such default shall continue for a period of five
days;

      (c) default in the payment of any principal due and payable on a Class of
Notes on the Note Final Scheduled Distribution Date for such Class of Notes;

      (d) (i) default in the observance or performance of any covenant or
agreement of the Issuer made in this Indenture (other than a covenant or
agreement, a default in the observance or performance of which is elsewhere in
this Section specifically dealt with), and such default shall continue or not be
cured for a period of 90 days after notice thereof shall have been given, by
registered or certified mail, to the Issuer by the Indenture Trustee or the
Insurer or to the Issuer and the Indenture Trustee by the Holders of at least
25% of the Outstanding Amount of the Notes, acting together as a single Class or
(ii) any representation or warranty made by the Issuer in this Indenture or in
any certificate delivered pursuant hereto or in connection herewith having been
incorrect in a material respect as of the time made, and such breach not having
been cured within 30 days after notice thereof is given to the Issuer by the
Indenture Trustee or the Insurer, or to the Issuer and the Indenture Trustee by
the Holders of at least 25% of the Outstanding Amount of the Notes acting
together as a single Class;

                                      -27-
<PAGE>
      (e) the filing of a decree or order for relief by a court having
jurisdiction in the premises in respect of the Issuer or any substantial part of
the Collateral in an involuntary case under any applicable federal or state
bankruptcy, insolvency or other similar law now or hereafter in effect, or
appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or
similar official of the Issuer or for any substantial part of the Collateral, or
ordering the winding-up or liquidation of the Issuer's affairs, and such decree
or order shall remain unstayed and in effect for a period of 60 consecutive
days; or

      (f) the commencement by the Issuer of a voluntary case under any
applicable federal or state bankruptcy, insolvency or other similar law now or
hereafter in effect, or the consent by the Issuer to the entry of an order for
relief in an involuntary case under any such law, or the consent by the Issuer
to the appointment or taking possession by a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official of the Issuer or for any
substantial part of the Collateral, or the making by the Issuer of any general
assignment for the benefit of creditors, or the failure by the Issuer generally
to pay its debts as such debts become due, or the taking of action by the Issuer
in furtherance of any of the foregoing; provided, however that so long as no
Insurer Default shall have occurred and be continuing, neither the Indenture
Trustee nor the Noteholders may declare an Indenture Event of Default under the
Indenture. So long as an Insurer Default shall not have occurred and be
continuing, an Indenture Event of Default shall occur only upon delivery by the
Insurer to the Indenture Trustee of notice of the occurrence of an Indenture
Event of Default. The failure to pay principal on a Class of Notes shall not
result in the occurrence of an Indenture Event of Default until the Note Final
Scheduled Distribution Date for such Class of Notes.

      The Issuer shall deliver to the Indenture Trustee and the Insurer, within
five days after obtaining knowledge of the occurrence thereof, written notice in
the form of an Officer's Certificate of any event which with the giving of
notice or the lapse of time would become an Event of Default, its status and
what action the Issuer is taking or proposes to take with respect thereto.

      Section 5.02 Rights Upon Event of Default.

      (a) So long as no Insurer Default has occurred and is continuing, if an
Event of Default shall have occurred and be continuing, then the Insurer shall
have the right, but not the obligation, upon prior written notice to each Rating
Agency, to declare by written notice to the Issuer and the Indenture Trustee
that the Notes become immediately due and payable, and upon any such declaration
the unpaid principal amount of the Notes, together with accrued and unpaid
interest thereon, shall become immediately due and payable. The Indenture
Trustee will have no discretion with respect to the acceleration of the Notes
under the foregoing circumstances. In the event of any such acceleration of the
Notes, the Indenture Trustee shall continue to make claims under the Policy with
respect to the Notes.

      (b) If an Insurer Default shall have occurred and be continuing and an
Event of Default shall have occurred and be continuing, the Indenture Trustee
shall, if so requested in writing by Holders representing at least 66-2/3% of
the aggregate Outstanding Amount of the Notes, acting together as a single
Class, upon prior written notice to each Rating Agency, declare that all the
Notes become immediately due and payable, and upon any such declaration the

                                      -28-
<PAGE>
unpaid principal amount of the Notes, together with accrued and unpaid interest
thereon, shall become immediately due and payable.

      (c) Following any Event of Default, the Insurer may elect to pay all or
any portion of the outstanding amount of the Notes, plus accrued interest
thereon to the date of payment.

      Section 5.03 Collection of Indebtedness and Suits for Enforcement by
Indenture Trustee.

      (a) The Issuer covenants that, if the Notes are accelerated following the
occurrence of an Event of Default, the Issuer will, upon demand of the Indenture
Trustee, pay to the Indenture Trustee, for the benefit of the Holders of the
Notes, the whole amount then due and payable on such Notes for principal and
interest, with interest upon the overdue principal, and, to the extent payment
at such rate of interest shall be legally enforceable, upon overdue installments
of interest, at the applicable Interest Rate and in addition thereto such
further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses and disbursements of
the Indenture Trustee and its agents and counsel.

      (b) If an Event of Default shall have occurred and be continuing, the
Indenture Trustee shall (i) if no Insurer Default shall have occurred and be
continuing, at the direction of the Insurer, or (ii) if an Insurer Default shall
have occurred and be continuing, at the direction of Holders representing at
least 66-2/3% of the Outstanding Amount of the Notes, acting together as a
single Class, as more particularly provided in Section 5.04, proceed to protect
and enforce the rights of the Noteholders, by such appropriate Proceedings as
the Indenture Trustee shall deem most effective to protect and enforce any such
rights, whether for the specific enforcement of any covenant or agreement in
this Indenture or in aid of the exercise of any power granted herein, or to
enforce any other proper remedy or legal or equitable right vested in the
Indenture Trustee by this Indenture or by law.

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

               (i) to file and prove a claim or claims for the whole amount of
      principal and interest owing and unpaid in respect of the Notes and to
      file such other papers or documents as may be necessary or advisable in
      order to have the claims of the Indenture Trustee (including any claim for
      reasonable compensation

                                      -29-
<PAGE>
      to the Indenture Trustee and each predecessor Indenture Trustee, and their
      respective agents, attorneys and counsel, and for reimbursement of all
      expenses and liabilities incurred by the Indenture Trustee and each
      predecessor Indenture Trustee, except as a result of negligence or bad
      faith) and of the Noteholders allowed in such Proceedings;

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

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

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

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

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

      (e) All rights of action and of asserting claims under this Indenture, or
under any of the Notes, may be enforced by the Indenture Trustee without the
possession of any of the Notes or the production thereof in any trial or other
Proceedings relative thereto, and any such action or Proceedings instituted by
the Indenture Trustee shall be brought in its own name as trustee of an express
trust, and any recovery of judgment, subject to the payment of the expenses,
disbursements and compensation of the Indenture Trustee, each predecessor
Indenture Trustee and their respective agents and attorneys, shall be for the
ratable benefit of the Holders of the Notes.

      (f) In any Proceedings brought by the Indenture Trustee (including any
Proceedings involving the interpretation of any provision of this Indenture),
the Indenture

                                      -30-
<PAGE>
Trustee shall be held to represent all the Noteholders, and it shall not be
necessary to make any Noteholder a party to any such Proceedings.

      Section 5.04 Remedies.

      (a) If (i) an Event of Default shall have occurred and be continuing, the
Indenture Trustee shall (subject to Section 5.04(b) below and Section 5.05), if
no Insurer Default shall have occurred and be continuing, at the direction of
the Insurer, or (ii) if an Event of Default shall have occurred and be
continuing, the Indenture Trustee shall (subject to Section 5.04(b) below and
Section 5.05), if an Insurer Default shall have occurred and be continuing, at
the direction of Holders representing at least 66-2/3% of the Outstanding Amount
of the Notes, acting together as a single Class, take one or more of the
following actions as so directed:

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

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

               (iii) exercise any remedies of a secured party under the UCC and
      any other remedy available to the Indenture Trustee and take any other
      appropriate action to protect and enforce the rights and remedies of the
      Indenture Trustee on behalf of the Noteholders under this Indenture or the
      Notes;

               (iv) sell or cause the Servicer to otherwise liquidate the
      Collateral or any portion thereof or rights or interests therein, at one
      or more public or private sales called and conducted in any manner
      permitted by law and deliver the proceeds of such sale or liquidation to
      the Indenture Trustee for distribution in accordance with the terms of
      this Indenture; and

               (v) maintain possession of the Collateral.

      (b) Notwithstanding the foregoing,

               (i) in the event that the Indenture Trustee is acting at the
      direction of the Insurer, so long as an Insurer Default shall not have
      occurred and be continuing, if an Event of Default shall have occurred and
      be continuing, the Insurer shall not have the right to cause the Indenture
      Trustee or the Servicer to, and neither the Indenture Trustee nor the
      Servicer shall, liquidate the Collateral in whole or in part if the
      proceeds of such sale or liquidation would not be sufficient to pay all
      outstanding principal of and accrued interest on the Notes; and

               (ii) in the event that the Indenture Trustee is acting at the
      direction of Holders representing at least 66-2/3% of the Outstanding
      Amount of the Notes, acting together as a single Class, the Noteholders
      shall not have the right to direct

                                      -31-
<PAGE>
      the Indenture Trustee or the Servicer to, and neither the Indenture
      Trustee nor the Servicer shall, liquidate the Collateral in whole or in
      part unless (A) an Indenture Event of Default as specified in Section
      5.01(b), (c), (e) or (f) shall have occurred and be continuing and in any
      case the Insurer shall have failed to make a payment required under the
      Policy in accordance with its terms or (B) (1) an Indenture Event of
      Default as specified in Section 5.01(a) or (d) shall have occurred and be
      continuing, (2) the Insurer shall not have failed to make a payment
      required under the Policy in accordance with its terms and (3) the
      proceeds of such sale or liquidation would be sufficient to pay all
      outstanding principal of and accrued interest on the Notes and all amounts
      owing to the Insurer pursuant to the terms of the Insurance Agreement and
      any unreimbursed Insurer Defense Costs. In the event of a liquidation of
      the Collateral pursuant to clause (B), the Policy will not be available to
      cover losses to Noteholders resulting from such liquidation, and the
      Policy shall be terminated and the Insurer shall have no further
      obligation thereunder.

      (c) In determining the sufficiency or insufficiency of the proceeds of a
sale or liquidation of the Collateral to pay all amounts required pursuant to
Section 5.04(b)(i) or (ii) above, the Indenture Trustee may, but need not, at
the sole expense of the Issuer obtain and rely upon an opinion of an Independent
investment banking or accounting firm of national reputation as to the
feasibility of such proposed action and as to the sufficiency of the Collateral
for such purpose.

      (d) In the event that the Indenture Trustee is directed to sell or to
cause the Servicer to otherwise liquidate the Collateral or any portion thereof
or rights or interests therein pursuant to Section 5.04(a)(iv) above, the
Indenture Trustee shall, prior to any such public or private sales, notify all
Residual Interestholders of the proposed sale. The Indenture Trustee shall
provide the Residual Interestholders the right to match the highest liquidation
price offered at any such sale.

      Section 5.05 Optional Preservation of the Collateral. If the Notes have
been declared to be due and payable under Section 5.02 following an Event of
Default and such declaration and its consequences have not been rescinded and
annulled, the Indenture Trustee shall, absent direction to the contrary from the
Insurer or the Noteholders pursuant to Section 5.04, maintain possession of the
Collateral.

      Section 5.06 Priorities(a) If the Notes have been declared to be due and
payable under Section 5.02 following an Indenture Event of Default and such
declaration and its consequences have not been rescinded and annulled, any money
collected by the Indenture Trustee with respect to the Collateral or the Notes
pursuant to this Article or otherwise and any money that may then be held or
thereafter received by the Indenture Trustee with respect to the Collateral or
the Notes (excluding any payments made under the Policy), shall be applied in
the following order and priority:

               first, to the Servicer and, if applicable, the Back-up Servicer,
      to pay any unpaid Servicing Fee;

                                      -32-
<PAGE>
               second, to pay any accrued and unpaid fees and expenses of the
      Owner Trustee, the Indenture Trustee and the Trust Agent without
      preference or priority of any kind;

               third, to the holders of Class A Notes, to pay accrued interest
      on each Class of Class A Notes on a pro rata basis based on the interest
      accrued (including, to the extent permitted by applicable law, interest
      accrued on any interest accrued but not timely paid) on each Class of
      Class A Notes at the related Interest Rate for such Class;

               fourth, to the holders of Class A Notes, to pay principal on each
      Class of Class A Notes on a pro rata basis based on the Outstanding Amount
      of each Class of Class A Notes, until the Outstanding Amount of each such
      Class of Notes is reduced to zero;

               fifth, to the Insurer, to pay amounts owing to the Insurer under
      the Insurance Agreement (including the Premium) and any unreimbursed
      Insurer Defense Costs; and

               sixth, any excess amounts remaining after making the
      distributions described in clauses first through fifth to the Spread
      Account, to be applied in accordance with the Insurance Agreement.

      (b) The Indenture Trustee may fix a record date and payment date for any
payment to Noteholders pursuant to this Section. At least 15 days before such
record date, the Issuer shall mail to each Noteholder and the Indenture Trustee
a notice that states the record date, the payment date and the amount to be
paid.

      Section 5.07 Limitation of Suits. No Holder of any Note shall have any
right to institute any Proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless:

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

               (ii) the Holders of not less than 25% of the Outstanding Amount
      of the Notes, acting together as a single Class, have made written request
      to the Indenture Trustee to institute such Proceeding in respect of such
      Event of Default in its own name as Indenture Trustee hereunder;

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

               (iv) the Indenture Trustee for 60 days after its receipt of such
      notice, request and offer of indemnity has failed to institute such
      Proceedings;

                                      -33-
<PAGE>
               (v) no direction inconsistent with such written request has been
      given to the Indenture Trustee during such 60-day period by the Holders of
      a majority of the Outstanding Amount of the Notes, acting together as a
      single Class; and

               (vi) an Insurer Default shall have occurred and be continuing.

It is understood and intended that no one or more Holders of Notes shall have
any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture to affect, disturb or prejudice the rights of any other
Holders of Notes or to obtain or to seek to obtain priority or preference over
any other Holders or to enforce any right under this Indenture, except in the
manner herein provided.

      In the event the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Holders of Notes,
each representing less than a majority of the Outstanding Amount of the Notes,
the Indenture Trustee shall act at the request of the Holders of the Notes with
the greater Outstanding Amount of Notes; provided, however that if such groups
of Holders of Notes have the same Outstanding Amount of Notes, the Indenture
Trustee in its sole discretion may determine what action, if any, shall be
taken, notwithstanding any other provisions of this Indenture and any such
action shall be binding on all parties.

      Section 5.08 Unconditional Rights of Noteholders to Receive Principal and
Interest. Notwithstanding any other provisions in this Indenture, the Holder of
any Note shall have the right, which is absolute and unconditional, to receive
payment of the principal of and interest on such Note on or after the respective
due dates thereof expressed in such Note or in this Indenture (or, in the case
of redemption of the Notes, on or after the Redemption Date) and to institute
suit for the enforcement of any such payment, and such right shall not be
impaired without the consent of such Holder, but in all cases subject to the
priorities of Section 8.02(c) or Section 5.06(a), as applicable.

      Section 5.09 Restoration of Rights and Remedies. If the Indenture Trustee,
the Insurer or any Noteholder has instituted any Proceeding to enforce any right
or remedy under this Indenture and such Proceeding has been discontinued or
abandoned for any reason or has been determined adversely to the Indenture
Trustee, the Insurer or to such Noteholder, then and in every such case the
Issuer, the Indenture Trustee, the Insurer and the Noteholders shall, subject to
any determination in such Proceeding, be restored severally and respectively to
their former positions hereunder, and thereafter all rights and remedies of the
Indenture Trustee and the Noteholders shall continue as though no such
Proceeding had been instituted.

      Section 5.10 Rights and Remedies Cumulative. No right or remedy herein
conferred upon or reserved to the Indenture Trustee, the Insurer or to the
Noteholders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

                                      -34-
<PAGE>
      Section 5.11 Delay or Omission Not a Waiver. No delay or omission of the
Indenture Trustee, the Insurer or any Holder of any Note to exercise any right
or remedy accruing upon any Default or Event of Default shall impair any such
right or remedy or constitute a waiver of any such Default or Event of Default
or an acquiescence therein. Every right and remedy given by this Article Five or
by law to the Indenture Trustee, the Insurer or to the Noteholders may be
exercised from time to time, and as often as may be deemed expedient, by the
Indenture Trustee, the Insurer or by the Noteholders, as the case may be.

      Section 5.12 Control by Noteholders. The Holders of a majority of the
Outstanding Amount of the Notes shall have the right to direct the time, method
and place of conducting any Proceeding for any remedy available to the Indenture
Trustee with respect to the Notes or exercising any trust or power conferred on
the Indenture Trustee; provided that:

               (i) such direction shall not be in conflict with any rule of law
      or with this Indenture;

               (ii) any direction to the Indenture Trustee to sell or liquidate
      the Collateral shall be subject to the terms of Section 5.04; and

               (iii) the Indenture Trustee may take any other action deemed
      proper by the Indenture Trustee that is not inconsistent with such
      direction.

Notwithstanding the rights of Noteholders set forth in this Section, subject to
Section 6.01, the Indenture Trustee need not take any action that it determines,
in its sole discretion, might involve it in liability or might materially
adversely affect the rights of any Noteholders not consenting to such action.

      Section 5.13 Waiver of Past Defaults. Prior to the declaration of the
acceleration of the maturity of the Notes as provided in Section 5.02, the
Insurer or the Holders of Notes representing not less than a majority of the
Outstanding Amount of the Notes, acting together as a single Class, with the
consent of the Insurer may waive any past Default or Event of Default and its
consequences except a Default (a) in the payment of or interest on any of the
Notes, (b) in respect of a covenant or provision hereof that cannot be modified
or amended without the consent of the Holder of each Note, as applicable, or (c)
in respect of the breach of a representation or warranty made by the Issuer in
Section 3.19 hereof. In the case of any such waiver, the Issuer, the Indenture
Trustee, the Insurer and the Holders of the Notes shall be restored to their
former positions and rights hereunder, respectively; but no such waiver shall
extend to any subsequent or other Default or impair any right consequent
thereto.

   Upon any such waiver, such Default shall cease to exist and be deemed to
have been cured and not to have occurred, and any Event of Default arising
therefrom shall be deemed to have been cured and not to have occurred, for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or
other Default or Event of Default or impair any right consequent thereto.

      Section 5.14 Undertaking for Costs. All parties to this Indenture agree,
and each Holder of any Note by such Holder's acceptance thereof shall be deemed
to have agreed, that any court may in its discretion require, in any suit for
the enforcement of any right or

                                      -35-
<PAGE>
remedy under this Indenture, or in any suit against the Indenture Trustee for
any action taken, suffered or omitted by it as Indenture Trustee, the filing by
any party litigant in such suit of an undertaking to pay the costs of such suit
and that such court may in its discretion assess reasonable costs, including
reasonable attorneys' fees, against any party litigant in such suit, having due
regard to the merits and good faith of the claims or defenses made by such party
litigant; but the provisions of this Section shall not apply to (i) any suit
instituted by the Indenture Trustee, (ii) any suit instituted by any Noteholder,
or group of Noteholders, in each case holding in the aggregate more than 10% of
the Outstanding Amount of the Notes or (iii) any suit instituted by any
Noteholder for the enforcement of the payment of principal of or interest on any
Note on or after the respective due dates expressed in such Note and in this
Indenture (or, in the case of redemption, on or after the Redemption Date).

      Section 5.15 Waiver of Stay or Extension Laws. The Issuer covenants (to
the extent that it may lawfully do so) that it will not at any time insist upon,
or plead or, in any manner whatsoever, claim or take the benefit or advantage
of, any stay or extension law wherever enacted, now or at any time hereafter in
force, that may affect the covenants or the performance of this Indenture; and
the Issuer (to the extent that it may lawfully do so) hereby expressly waives
all benefit or advantages of any such law, and covenants that it will not
hinder, delay or impede the execution of any power herein granted to the
Indenture Trustee, but will suffer and permit the execution of every such power
as though no such law had been enacted.

      Section 5.16 Action on Notes. The Indenture Trustee's right to seek and
recover judgment on the Notes or under this Indenture shall not be affected by
the seeking, obtaining or application of any other relief under or with respect
to this Indenture. Neither the lien of this Indenture nor any rights or remedies
of the Indenture Trustee or the Noteholders shall be impaired by the recovery of
any judgment by the Indenture Trustee against the Issuer or by the levy of any
execution under such judgment upon any portion of the Collateral or upon any of
the assets of the Issuer. Any money or property collected by the Indenture
Trustee shall be applied in accordance with Section 5.06.

      Section 5.17 Performance and Enforcement of Certain Obligations.

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

      (b) If the Indenture Trustee is the Controlling Party and if an Event of
Default has occurred and is continuing, the Indenture Trustee may, and at the
direction (which direction shall be given in writing and may include a
facsimile) of the Holders of 66-2/3% of the

                                      -36-
<PAGE>
Outstanding Amount of the Notes shall, exercise all rights, remedies, powers,
privileges and claims of the Issuer against the Seller or the Servicer under or
in connection with the Sale and Servicing Agreement, including the right or
power to take any action to compel or secure performance or observance by the
Seller or the Servicer of each of their obligations to the Issuer thereunder and
to give any consent, request, notice, direction, approval, extension or waiver
under the Sale and Servicing Agreement, and any right of the Issuer to take such
action shall be suspended.

                                   ARTICLE VI

                              THE INDENTURE TRUSTEE

Section  6.01     Duties of Indenture Trustee.

      (a) If an Event of Default has occurred and is continuing, of which a
Responsible Officer of the Indenture Trustee shall have actual knowledge, the
Indenture Trustee shall exercise the rights and powers vested in it by this
Indenture and with the same degree of care and skill in their exercise as a
prudent person would exercise or use under the circumstances in the conduct of
such person's own affairs; provided, however, that if the Indenture Trustee
shall assume the duties of the Servicer pursuant to Section 3.07(e), the
Indenture Trustee in performing such duties shall use the degree of care and
skill customarily exercised by a prudent institutional servicer with respect to
automobile retail installment sales contracts that it services for itself or
others.

      (b) Except during the continuance of an Event of Default of which a
Responsible Officer of the Indenture Trustee shall have actual knowledge or
written notice:

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

               (ii) in the absence of bad faith on its part, the Indenture
      Trustee may conclusively rely, as to the truth of the statements and the
      correctness of the opinions expressed therein, upon certificates or
      opinions furnished to the Indenture Trustee and conforming to the
      requirements of this Indenture; however, the Indenture Trustee shall
      examine the certificates and opinions to determine whether or not they
      conform to the requirements of this Indenture and the other Basic
      Documents to which the Indenture Trustee is a party; provided, however,
      that the Indenture Trustee shall not be responsible for the accuracy or
      content of any of the aforementioned documents and the Indenture Trustee
      shall have no obligation to verify, re-compute or recalculate any
      numerical information provided to it pursuant to the Basic Documents.

                                      -37-
<PAGE>
      (c) The Indenture Trustee may not be relieved from liability for its own
negligent action, its own negligent failure to act or its own willful
misconduct, except that:

               (i) this paragraph does not limit the effect of Section 6.01(b);

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

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

      (d) Every provision of this Indenture that in any way relates to the
Indenture Trustee is subject to paragraphs (a), (b) and (c) of this Section.

      (e) The Indenture Trustee shall not be liable for interest on any money
received by it.

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

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

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

      (i) The Indenture Trustee shall, and hereby agrees that it will (i)
perform all of the obligations and duties required of it under the Sale and
Servicing Agreement and (ii) hold the Policy in trust, and will hold any
proceeds of any claim on the Policy in trust solely for application as provided
in the Sale and Servicing Agreement.

      (j) Except as otherwise required or permitted by the TIA, nothing
contained herein shall be deemed to authorize the Indenture Trustee to engage in
any business operations or any activities other than those set forth in this
Indenture. Specifically, the Indenture Trustee shall have no authority to engage
in any business operations, acquire any assets other than those specifically
included in the Collateral under this Indenture or otherwise vary the assets
held by the Trust. Similarly, the Indenture Trustee shall have no discretionary
duties other than performing those ministerial acts set forth above necessary to
accomplish the purpose of this Trust as set forth in this Indenture.

                                      -38-
<PAGE>
      (k) The Indenture Trustee shall not be liable in its individual capacity
with respect to any action taken, suffered or omitted to be taken by it in good
faith in accordance with this Indenture or at the direction of a majority of the
Outstanding Amount of Notes, acting together as a single Class, relating to the
time, method and place of conducting any Proceeding for any remedy available to
the Indenture Trustee, or exercising or omitting to exercise any trust or power
conferred upon the Indenture Trustee, under this Indenture.

      (l) The Indenture Trustee shall not be required to take notice or be
deemed to have notice or knowledge of any Default or Event of Default unless a
Responsible Officer of the Indenture Trustee shall have received written notice
thereof. In the absence of receipt of such notice, the Indenture Trustee may
conclusively assume that there is no Default or Event of Default.

      (m) Subject to the other provisions of this Indenture, the Indenture
Trustee shall have no duty (i) to see to any recording, filing, or depositing of
this Agreement or any agreement referred to herein or any financing statement or
continuation statement evidencing a security interest, or to see to the
maintenance of any such recording or filing or depositing or to any rerecording,
refiling or redepositing of any thereof, (ii) to see to any insurance, (iii) to
see to the payment or discharge of any tax, assessment, or other governmental
charge or any lien or encumbrance of any kind owing with respect to, assessed or
levied against, any part of the Collateral, or (iv) to confirm or verify the
contents of any reports or certificates delivered to the Indenture Trustee
pursuant to this Indenture believed by the Indenture Trustee to be genuine and
to have been signed or presented by the proper party or parties.

      (n) Anything in this Agreement to the contrary notwithstanding, in no
event shall the Indenture Trustee be liable for special, indirect or
consequential loss or damage of any kind whatsoever (including but not limited
to lost profits), even if the Indenture Trustee has been advised of the
likelihood of such loss or damage regardless of the form of action.

      Section 6.02 Rights of Indenture Trustee

      (a) Except as otherwise provided in the second succeeding sentence, the
Indenture Trustee may conclusively rely and shall be protected in acting upon or
refraining from acting upon any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, note, direction, demand,
election or other paper or document believed by it to be genuine and to have
been signed or presented by the proper person. The Indenture Trustee need not
investigate any fact or matter stated in the document. Notwithstanding the
foregoing, the Indenture Trustee, subject to Section 6.01(b)(ii) upon receipt of
all resolutions, certificates, statements, opinions, reports, documents, orders
or other instruments furnished to the Indenture Trustee that shall be
specifically required to be furnished pursuant to any provision of this
Indenture, shall examine them to determine whether they comply as to form to the
requirements of this Indenture.

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

                                      -39-
<PAGE>
      (c) The Indenture Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through
agents or attorneys or a custodian or nominee and the Indenture Trustee shall
not be responsible for any misconduct or negligence on the part of any such
agent, attorney, custodian or nominee appointed by the Indenture Trustee with
due care.

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

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

      (f) The Indenture Trustee shall be under no obligation to exercise any of
the trusts or powers vested in it by this Indenture or to institute, conduct or
defend any litigation hereunder or in relation hereto at the request, order or
direction of any of the Noteholders, pursuant to the provisions of this
Indenture, unless such Noteholders shall have offered to the Indenture Trustee
reasonable security or indemnity against the costs, expenses and liabilities
which may be incurred therein or thereby; nothing contained herein shall,
however, relieve the Indenture Trustee of the obligation, during the continuance
of an Event of Default of which a Responsible Officer of the Indenture Trustee
shall have actual knowledge, to exercise such of the rights and powers vested in
it by this Indenture, and to use the same degree of care and skill in their
exercise, as a prudent person would exercise or use under the circumstances in
the conduct of such person's own affairs.

      (g) The Indenture Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, order, approval, bond or
other paper or document, unless requested in writing to do so by a majority of
Noteholders; provided, however, that if the payment within a reasonable time to
the Indenture Trustee of the costs, expenses or liabilities likely to be
incurred by it in the making of such investigation is, in the opinion of the
Indenture Trustee, not reasonably assured to the Indenture Trustee by the
security afforded to it by the terms of this Agreement, the Indenture Trustee
may require reasonable indemnity against such cost, expense or liability as a
condition to taking any such action.

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

      Section 6.03 Individual Rights of Indenture Trustee. The Indenture Trustee
in its individual or any other capacity may become the owner or pledgee of Notes
and may otherwise deal with the Issuer or its Affiliates with the same rights it
would have if it were not

                                      -40-
<PAGE>
Indenture Trustee. Any Paying Agent, Note Registrar, co-registrar or co-paying
agent may do the same with like rights. However, the Indenture Trustee is
required to comply with Sections 6.11 and 6.12.

      Section 6.04 Indenture Trustee's Disclaimer. The Indenture Trustee shall
not be responsible for and makes no representation as to the validity or
adequacy of this Indenture, the Collateral or the Notes, it shall not be
accountable for the Issuer's use of the proceeds from the Notes, and it shall
not be responsible for any statement of the Issuer in this Indenture or in any
document issued in connection with the sale of the Notes or in the Notes other
than the Indenture Trustee's certificate of authentication.

      Section 6.05 Notice of Defaults. If a Default occurs and is continuing and
a Responsible Officer of the Indenture Trustee has actual knowledge or has
received written notice thereof, the Indenture Trustee shall mail to each
Noteholder and the Insurer notice of the Default within 90 days after it occurs.
Except in the case of a Default in payment of principal of or interest on any
Note (including payments pursuant to the redemption of Notes), the Indenture
Trustee may withhold the notice if and so long as a committee of its Responsible
Officers in good faith determines that withholding the notice is in the
interests of Noteholders.

      Section 6.06 Reports by Indenture Trustee to Holders. The Indenture
Trustee shall deliver to each Noteholder such information as may be required to
enable such Holder to prepare its federal and state income tax returns.

      Section 6.07 Compensation and Indemnity. The Issuer shall cause the
Administrator to pay to the Indenture Trustee from time to time reasonable
compensation for its services. The Indenture Trustee's compensation shall not be
limited by any law on compensation of a trustee of an express trust. The Issuer
shall cause the Servicer to reimburse the Indenture Trustee for all reasonable
out-of-pocket expenses incurred or made by it, including costs of collection, in
addition to the compensation for its services. Such expenses shall include the
reasonable compensation and expenses and disbursements and advances of the
Indenture Trustee's agents, counsel, accountants and experts. The Issuer shall,
or shall cause the Administrator to, indemnify the Indenture Trustee against any
and all loss, liability or expense (including attorneys' fees) incurred by it in
connection with the administration of this trust and the performance of its
duties hereunder. The Indenture Trustee shall notify the Issuer and the
Administrator promptly of any claim for which it may seek indemnity. Failure by
the Indenture Trustee to so notify the Issuer and the Administrator shall not
relieve the Issuer or the Administrator of its obligations hereunder. The Issuer
shall, or shall cause the Administrator to, defend any such claim, and the
Indenture Trustee may have separate counsel and the Issuer shall, or shall cause
the Administrator to, pay the fees and expenses of such counsel. Neither the
Issuer nor the Administrator need reimburse any expense or indemnify against any
loss, liability or expense incurred by the Indenture Trustee through the
Indenture Trustee's own willful misconduct, negligence or bad faith.

      The Issuer's obligations to the Indenture Trustee pursuant to this Section
shall survive the resignation or removal of the Indenture Trustee and the
discharge of this Indenture. When the Indenture Trustee incurs expenses after
the occurrence of a Default specified in Section 5.01(e) or (f) with respect to
the Issuer, the expenses are intended to constitute expenses of

                                      -41-
<PAGE>
administration under Title 11 of the United States Code or any other applicable
federal or state bankruptcy, insolvency or similar law.

      Section 6.08 Replacement of Indenture Trustee. The Indenture Trustee may
resign at any time by so notifying the Issuer, the Servicer and the Insurer. The
Issuer, may, with the consent of the Insurer, and, at the request of the Insurer
shall, remove the Indenture Trustee, unless an Insurer Default shall have
occurred and be continuing, if:

               (i) the Indenture Trustee fails to comply with Section 6.11;

               (ii) a court having jurisdiction in the premises in respect of
      the Indenture Trustee in an involuntary case or proceeding under federal
      or state banking or bankruptcy laws, as now or hereafter constituted, or
      any other applicable federal or state bankruptcy, insolvency or other
      similar law, shall have entered a decree or order granting relief or
      appointing a receiver, liquidator, assignee, custodian, trustee,
      conservator, sequestrator (or similar official) for the Indenture Trustee
      or for any substantial part of the Indenture Trustee's property, or
      ordering the winding-up or liquidation of the Indenture Trustee's affairs,
      provided any such decree or order shall have continued unstayed and in
      effect for a period of 30 consecutive days;

               (iii) the Indenture Trustee commences a voluntary case under any
      federal or state banking or bankruptcy laws, as now or hereafter
      constituted, or any other applicable federal or state bankruptcy,
      insolvency or other similar law, or consents to the appointment of or
      taking possession by a receiver, liquidator, assignee, custodian, trustee,
      conservator, sequestrator or other similar official for the Indenture
      Trustee or for any substantial part of the Indenture Trustee's property,
      or makes any assignment for the benefit of creditors or fails generally to
      pay its debts as such debts become due or takes any corporate action in
      furtherance of any of the foregoing; or

               (iv) the Indenture Trustee otherwise becomes incapable of acting.

      If the Indenture Trustee resigns or is removed or if a vacancy exists in
the office of Indenture Trustee for any reason (the Indenture Trustee in such
event being referred to herein as the retiring Indenture Trustee), the Issuer
shall promptly appoint a successor Indenture Trustee acceptable to the Insurer.

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

      If a successor Indenture Trustee does not take office within 30 days after
the retiring Indenture Trustee resigns or is removed, the retiring Indenture
Trustee, the Issuer or the Holders

                                      -42-
<PAGE>
of a majority of the Outstanding Amount of the Notes may petition any court of
competent jurisdiction for the appointment of a successor Indenture Trustee.

      If the Indenture Trustee fails to comply with Section 6.11, any Noteholder
may petition any court of competent jurisdiction for the removal of the
Indenture Trustee and the appointment of a successor Indenture Trustee.

      Any resignation or removal of the Indenture Trustee and appointment of a
successor Indenture Trustee pursuant to the provisions of this Section shall not
become effective until acceptance of appointment by the successor Indenture
Trustee pursuant to this Section and payment of all fees and expenses owed to
the outgoing Indenture Trustee. Notwithstanding the replacement of the Indenture
Trustee pursuant to this Section, the retiring Indenture Trustee shall be
entitled to payment or reimbursement of such amounts as such Person is entitled
pursuant to Section 6.07.

      Section 6.09 Successor Indenture Trustee by Merger. If the Indenture
Trustee consolidates with, merges or converts into, or transfers all or
substantially all its corporate trust business or assets to, another corporation
or banking association, the resulting, surviving or transferee corporation
without any further act shall be the successor Indenture Trustee; provided, that
such corporation or banking association shall be otherwise qualified and
eligible under Section 6.11. The Indenture Trustee shall (unless the Indenture
Trustee is Citibank, N.A.) provide the Insurer and each Rating Agency prompt
notice of any such transaction.

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

      Section 6.10 Appointment of Co-Indenture Trustee or Separate Indenture
Trustee.

      (a) Notwithstanding any other provision of this Indenture, at any time,
for the purpose of meeting any legal requirement of any jurisdiction in which
any part of the Collateral may at the time be located, the Indenture Trustee
shall have the power and may execute and deliver all instruments to appoint one
or more Persons to act as a co-trustee or co-trustees, jointly with the
Indenture Trustee, or separate trustee or separate trustees, of all or any part
of the Trust, and to vest in such Person or Persons, in such capacity and for
the benefit of the Noteholders, such title to the Collateral, or any part
hereof, and, subject to the other provisions of this Section, such powers,
duties, obligations, rights and trusts as the Indenture Trustee may consider
necessary or desirable. No co-trustee or separate trustee hereunder shall be
required to meet the terms of eligibility as a successor Indenture Trustee under
Section 6.11 and no notice to

                                      -43-
<PAGE>
Noteholders of the appointment of any co-trustee or separate trustee shall be
required under Section 6.08.

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

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

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

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

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

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

      Section 6.11 Eligibility; Disqualification.

      (a) The Indenture Trustee shall have a combined capital and surplus of at
least $50,000,000 as set forth in its most recent published annual report of
condition. The Indenture

                                      -44-
<PAGE>
Trustee shall provide copies of such reports to the Insurer upon request. The
Indenture Trustee shall comply with TIA Section 310(b); provided, however, that
there shall be excluded from the operation of TIA Section 310(b)(1) any
indenture or indentures under which other securities of the Issuer are
outstanding if the requirements for such exclusion set forth in TIA Section
310(b)(1) are met.

      (b) If the long term debt rating of the Indenture Trustee shall not be at
least Baa3 from Moody's and BBB- from Standard & Poor's, the Rating Agencies
shall be given notice of such lower long-term debt rating.

      Section 6.12 Preferential Collection of Claims Against Issuer. The
Indenture Trustee shall comply with TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). An Indenture Trustee who has resigned
or been removed shall be subject to Section 311(a) to the extent indicated.

      Section 6.13 Representations and Warranties of Indenture Trustee. The
Indenture Trustee hereby makes the following representations and warranties on
which the Issuer and Noteholders shall rely:

      (a) the Indenture Trustee is a corporation duly organized, validly
existing and in good standing under the laws of its place of incorporation; and

      (b) the Indenture Trustee has full power, authority and legal right to
execute, deliver, and perform this Indenture and shall have taken all necessary
action to authorize the execution, delivery and performance by it of this
Indenture.

                                  ARTICLE VII

                         NOTEHOLDERS' LISTS AND REPORTS

      Section 7.01 Issuer to Furnish Indenture Trustee Names and Addresses of
Noteholders. The Issuer will furnish or cause to be furnished to the Indenture
Trustee (i) not more than five days after the earlier of (a) each Record Date
and (b) three months after the last Record Date, a list, in such form as the
Indenture Trustee may reasonably require, of the names and addresses of the
Holders of Notes as of such Record Date and (ii) at such other times as the
Indenture Trustee may request in writing, within 10 days after receipt by the
Issuer of any such request, a list of similar form and content as of a date not
more than ten days prior to the time such list is furnished; provided, however,
that so long as the Indenture Trustee is the Note Registrar, no such list shall
be required to be furnished. The Indenture Trustee or, if the Indenture Trustee
is not the Note Registrar, the Issuer shall furnish to the Insurer in writing at
such times as the Insurer may reasonably request a copy of the list.

      Section 7.02 Preservation of Information; Communications to Noteholders.

      (a) The Indenture Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of the Holders of Notes
contained in the most recent list furnished to the Indenture Trustee as provided
in Section 7.01 and the names and addresses of Holders of Notes received by the
Indenture Trustee in its capacity as Note Registrar. The

                                      -45-
<PAGE>
Indenture Trustee may destroy any list furnished to it as provided in such
Section 7.01 upon receipt of a new list so furnished.

      (b) Noteholders may communicate pursuant to TIA Section 312(b) with other
Noteholders with respect to their rights under this Indenture or under the
Notes.

      (c) The Issuer, the Indenture Trustee and the Note Registrar shall have
the protection of TIA Section 312(c).

      Section 7.03 Reports by Issuer.

      (a) The Issuer shall:

               (i) file with the Indenture Trustee, within 15 days after the
      Issuer is required to file the same with the Commission, copies of the
      annual reports and of the information, documents and other reports (or
      copies of such portions of any of the foregoing as the Commission may from
      time to time by rules and regulations prescribe) which the Issuer may be
      required to file with the Commission pursuant to Sections 13 or 15(d) of
      the Exchange Act;

               (ii) file with the Indenture Trustee and the Commission in
      accordance with rules and regulations prescribed from time to time by the
      Commission such additional information, documents and reports with respect
      to compliance by the Issuer with the conditions and covenants of this
      Indenture as may be required from time to time by such rules and
      regulations; and

               (iii) supply to the Indenture Trustee (and the Indenture Trustee
      shall transmit by mail to all Noteholders described in TIA Section 313(c))
      such summaries of any information, documents and reports required to be
      filed by the Issuer pursuant to clauses (i) and (ii) of this Section
      7.03(a) as may be required by rules and regulations prescribed from time
      to time by the Commission.

      (b) Unless the Issuer otherwise determines, the fiscal year of the Issuer
shall end on December 31 of each year.

      Section 7.04 Reports by Indenture Trustee. To the extent that any of the
events described in TIA Section 313(a) shall have occurred, the Indenture
Trustee shall, within 60 days after each December 15 beginning with December 15,
2003, mail to the Issuer, the Insurer and each Noteholder as required by TIA
Section 313(c) a brief report dated as of such date that complies with TIA
Section 313(a). The Indenture Trustee also shall comply with TIA Section 313(b).

                                  ARTICLE VIII

                      ACCOUNTS, DISBURSEMENTS AND RELEASES

      Section 8.01 Collection of Money

                                      -46-
<PAGE>
      (a) General. Except as otherwise expressly provided herein, the Indenture
Trustee may demand payment or delivery of, and shall receive and collect,
directly and without intervention or assistance of any fiscal agent or other
intermediary, all money and other property payable to or receivable by the
Indenture Trustee pursuant to this Indenture. The Indenture Trustee shall apply
all such money received by it as provided in this Indenture. Except as otherwise
expressly provided in this Indenture, if any default occurs in the making of any
payment or performance under any agreement or instrument that is part of the
Collateral, the Indenture Trustee may take such action as may be appropriate to
enforce such payment or performance, including the institution and prosecution
of appropriate Proceedings. Any such action shall be without prejudice to any
right to claim a Default or Event of Default under this Indenture and any right
to proceed thereafter as provided in Article Five.

      (b) Claims Under Policy. The Notes will be insured by the Policy pursuant
to the terms set forth therein, notwithstanding any provisions to the contrary
contained in this Indenture or the Sale and Servicing Agreement. All amounts
received under the Policy shall be used solely for the payment to the Servicer
and, if applicable, the Back-up Servicer, the Servicing Fee, to the Indenture
Trustee, the Owner Trustee and the Trust Agent their fees due (which amounts do
not include expenses) and to Noteholders of principal and interest on the Notes.

      Section 8.02 Trust Accounts

      (a) On or prior to the Closing Date, the Issuer shall cause the Servicer
to establish in the name of the Indenture Trustee, for the benefit of the
Noteholders and the Insurer, the Trust Accounts as provided in Section 4.01 of
the Sale and Servicing Agreement.

      (b) On the Business Day immediately preceding each Distribution Date,
based solely on the Distribution Date Statement, the Servicer shall cause funds
to be withdrawn from the Collection Account equal to the amount of Net
Collections available with respect to such Distribution Date and deposited into
the Payment Account, as provided in Section 4.02(e) of the Sale and Servicing
Agreement. On each Distribution Date, based solely on the Distribution Date
Statement, the Indenture Trustee will apply the Net Collections available with
respect to the related Collection Period, together with amounts, if any,
withdrawn from the Spread Account, the Prefunding Account and the Capitalized
Interest Account or representing payment of the Policy Claim Amount, to make the
deposits to the Note Distribution Account required pursuant to Section 4.03(a)
of the Sale and Servicing Agreement.

      (c) On each Distribution Date, based solely on the Distribution Date
Statement, the Indenture Trustee shall distribute all available amounts on
deposit in the Note Distribution Account in respect of such Distribution Date to
Noteholders in the following order of priority:

               (i) to the Holders of Class A Notes, the Note Interest
      Distributable Amount with respect to the Class A Notes for such
      Distribution Date, pro rata;

               (ii) if such Distribution Date is the Note Final Scheduled
      Distribution Date with respect to a Class of Notes, to the Holders of such
      Class of Notes, the

                                      -47-
<PAGE>
      Note Principal Distributable Amount to the extent of the remaining
      Outstanding Amount of such Class of Notes;

               (iii) to the Holders of the Class A-1 Notes, the remaining Note
      Principal Distributable Amount (after giving effect to the payment, if
      any, described in clause (ii) above), until the Outstanding Amount of the
      Class A-1 Notes is reduced to zero;

               (iv) to the Holders of the Class A-2 Notes, the remaining Note
      Principal Distributable Amount (after giving effect to the payments, if
      any, described in clauses (ii) and (iii) above), until the Outstanding
      Amount of the Class A-2 Notes is reduced to zero;

               (v) to the Holders of the Class A-3 Notes, the remaining Note
      Principal Distributable Amount (after giving effect to the payments, if
      any, described in clauses (ii) through (iv) above), until the Outstanding
      Amount of the Class A-3 Notes is reduced to zero; and

               (vi) to the Holders of the Class A-4 Notes, the remaining Note
      Principal Distributable Amount (after giving effect to the payments, if
      any, described in clauses (ii) through (v) above), until the Outstanding
      Amount of the Class A-4 Notes is reduced to zero.

      (d) The Indenture Trustee shall make claims under the Policy pursuant to
Section 4.02(c) of the Sale and Servicing Agreement and in accordance with the
Policy. In making any such claim, the Indenture Trustee shall comply with all
the terms and conditions of the Policy. Upon receipt of the Policy Claim Amount,
the Indenture Trustee shall distribute such Policy Claim Amount to the Servicer,
the Indenture Trustee, the Owner Trustee, the Trust Agent and, if applicable,
the Back-up Servicer, pursuant to the Sale and Servicing Agreement or as part of
the Note Distributable Amount under this Indenture.

      Section 8.03 [RESERVED].

      Section 8.04 Release of Collateral

      (a) Subject to the payment of its fees and expenses pursuant to Section
6.07, the Indenture Trustee may, and when required by the provisions of this
Indenture shall, execute instruments to release property from the lien of this
Indenture, or convey the Indenture Trustee's interest in the same, in a manner
and under circumstances that are not inconsistent with the provisions of this
Indenture. No party relying upon an instrument executed by the Indenture Trustee
as provided in this Article shall be bound to ascertain the Indenture Trustee's
authority, inquire into the satisfaction of any conditions precedent or see to
the application of any monies.

      (b) The Indenture Trustee shall, at such time as there are no Notes
Outstanding and all sums due the Indenture Trustee pursuant to Section 6.07 have
been paid, release any remaining portion of the Collateral that secured the
Notes from the lien of this Indenture and release to the Issuer or any other
Person entitled thereto any funds then on deposit in the Trust Accounts. The
Indenture Trustee shall release property from the lien of this

                                      -48-
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Indenture pursuant to this Section 8.04(b) only upon receipt of an Issuer
Request accompanied by an Officer's Certificate, an Opinion of Counsel and (if
required by the TIA) Independent Certificates in accordance with TIA Sections
314(c) and 314(d)(1) meeting the applicable requirements of Section 11.01.

      Section 8.05 Opinion of Counsel. The Indenture Trustee shall receive at
least seven days' notice when requested by the Issuer to take any action
pursuant to Section 8.04(a), accompanied by copies of any instruments involved,
and the Indenture Trustee shall also require, as a condition to such action, an
Opinion of Counsel, in form and substance satisfactory to the Indenture Trustee
(and not at the expense of the Indenture Trustee), stating the legal effect of
any such action, outlining the steps required to complete the same, and
concluding that all conditions precedent to the taking of such action have been
complied with and such action will not materially and adversely impair the
security for the Notes or the rights of the Noteholders in contravention of the
provisions of this Indenture; provided, however, that such Opinion of Counsel
shall not be required to express an opinion as to the fair value of the
Collateral. Counsel rendering any such opinion may rely, without independent
investigation, on the accuracy and validity of any certificate or other
instrument delivered to the Indenture Trustee in connection with any such
action.

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

      Section 9.01 Supplemental Indentures Without Consent of Noteholders

      (a) Without the consent of the Holders of any Notes but with the consent
of the Insurer and upon the satisfaction of the Rating Agency Condition, the
Issuer and the Indenture Trustee, when authorized by an Issuer Order, and the
other parties hereto at any time and from time to time, may enter into one or
more indentures supplemental hereto (which shall conform to the provisions of
the TIA as in force at the date of the execution thereof), in form satisfactory
to the Indenture Trustee, for any of the following purposes:

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

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

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

               (iv) to convey, transfer, assign, mortgage or pledge any property
      to or with the Indenture Trustee;

                                      -49-
<PAGE>
               (v) to cure any ambiguity, to correct or supplement any provision
      herein or in any supplemental indenture which may be inconsistent with any
      other provision herein or in any supplemental indenture or the Basic
      Documents or to make any other provisions with respect to matters or
      questions arising under this Indenture or in any supplemental indenture;
      provided that such action shall not adversely affect the interests of the
      Holders of the Notes;

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

               (vii) to modify, eliminate or add to the provisions of this
      Indenture to such extent as shall be necessary to effect the qualification
      of this Indenture under the TIA or under any similar federal statute
      hereafter enacted and to add to this Indenture such other provisions as
      may he expressly required by the TIA.

      The Indenture Trustee is hereby authorized to join in the execution of any
such supplemental indenture and to make any further appropriate agreements and
stipulations that may be therein contained.

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

      Section 9.02 Supplemental Indentures With Consent of Noteholders. The
Issuer and the Indenture Trustee, when authorized by an Issuer Order, also may,
upon satisfaction of the Rating Agency Condition, with the consent of the
Insurer and with the consent of the Holders of not less than 51% of the
Outstanding Amount of the Notes, by Act of such Holders delivered to the Issuer
and the Indenture Trustee, enter into an indenture or indentures supplemental
hereto for the purpose of adding any provisions to, or changing in any manner or
eliminating any of the provisions of, this Indenture or of modifying in any
manner the rights of the Holders of the Notes under this Indenture; provided,
however, that, subject to the express rights of the Insurer under the Basic
Documents, no such supplemental indenture shall, without the consent of the
Holder of each Outstanding Note affected thereby:

      (a) change the date of payment of any installment of principal of or
interest on any Note, or reduce the principal amount thereof, the interest rate
thereon or the Redemption Price with respect thereto, or change any place of
payment where, or the coin or currency in which, any Note or the interest
thereon is payable;

                                      -50-
<PAGE>
      (b) impair the right to institute suit for the enforcement of the
provisions of this Indenture requiring the application of funds available
therefor, as provided in Article Five, to the payment of any such amount due on
the Notes on or after the respective due dates thereof (or, in the case of
redemption, on or after the Redemption Date);

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

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

      (e) reduce the percentage of the Outstanding Amount of the Notes, the
consent of the Holders of which is required to direct the Indenture Trustee to
sell or liquidate the Collateral pursuant to Section 5.04;

      (f) decrease the percentage of the Outstanding Amount of the Notes
required to amend this Indenture or the other Basic Documents;

      (g) permit the creation of any lien ranking prior to or on a parity with
the lien created by this Indenture with respect to any part of the Collateral
or, except as otherwise permitted or contemplated herein, terminate the lien
created by this Indenture on any property at any time subject hereto or deprive
the Holder of any Note of the security provided by the lien created by this
Indenture.

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

      It shall not be necessary for any act of Noteholders under this Section to
approve the particular form of any proposed supplemental indenture, but it shall
be sufficient if such act shall approve the substance thereof.

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

      Section 9.03 Execution of Supplemental Indentures. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by
this Indenture, the Indenture Trustee shall be entitled to receive, and subject
to Sections 6.01 and 6.02 shall be fully protected in relying upon, an Opinion
of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Indenture Trustee may, but shall
not be obligated to, enter into

                                      -51-
<PAGE>
any such supplemental indenture that affects the Indenture Trustee's own rights,
duties, liabilities or immunities under this Indenture or otherwise.

      Section 9.04 Effect of Supplemental Indenture. Upon the execution of any
supplemental indenture pursuant to the provisions hereof, this Indenture shall
be and be deemed to be modified and amended in accordance therewith with respect
to the Notes affected thereby, and the respective rights, limitations of rights,
obligations, duties, liabilities and immunities under this Indenture of the
parties hereto and the Holders of the Notes shall thereafter be determined,
exercised and enforced hereunder subject in all respects to such modifications
and amendments, and all the terms and conditions of any such supplemental
indenture shall be and be deemed to be part of the terms and conditions of this
Indenture for any and all purposes.

      Section 9.05 Conformity With Trust Indenture Act. Every amendment of this
Indenture and every supplemental indenture executed pursuant to this Article
shall conform to the requirements of the Trust Indenture Act as then in effect
so long as this Indenture shall then be qualified under the Trust Indenture Act.

      Section 9.06 Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article may, and if required by the Indenture Trustee shall,
bear a notation in form approved by the Indenture Trustee as to any matter
provided for in such supplemental indenture. If the Issuer or the Indenture
Trustee shall so determine, new notes so modified as to conform, in the opinion
of the Indenture Trustee and the Issuer, to any such supplemental indenture may
be prepared and executed by the Issuer and authenticated and delivered by the
Indenture Trustee in exchange for Outstanding Notes.

                                   ARTICLE X

                               REDEMPTION OF NOTES

      Section 10.01 Redemption. In the event that the Servicer pursuant to
Section 8.01(a) of the Sale and Servicing Agreement purchases the corpus of the
Trust, the Notes are subject to redemption in whole, but not in part, on the
Distribution Date on which such repurchase occurs, for a purchase price equal to
the Redemption Price; provided, however, that the Issuer has available funds
sufficient to pay the Redemption Price. The Seller, the Servicer or the Issuer
shall furnish the Insurer and each Rating Agency notice of such redemption. If
the Notes are to be redeemed pursuant to this Section 10.01, the Servicer or the
Issuer shall furnish notice of such election to the Indenture Trustee not later
than 10 days prior to the Redemption Date and the Issuer shall deposit with the
Indenture Trustee in the Note Distribution Account the Redemption Price of the
Notes to be redeemed whereupon the Collateral shall be released from the lien of
this Indenture and all such Notes shall be due and payable on the Redemption
Date upon the furnishing of a notice complying with Section 10.02 to each Holder
of the Notes.

      Section 10.02 Form of Redemption Notice. Notice of redemption under
Section 10.01 shall be given by the Indenture Trustee by first-class mail,
postage prepaid, mailed not less than five days prior to the applicable
Redemption Date to each Holder of Notes, as of the close of business on the
Record Date preceding the applicable Redemption Date, at such Holder's

                                      -52-
<PAGE>
address appearing in the Note Register. In addition, the Administrator shall
notify the Insurer and Rating Agencies upon the redemption of any Class of
Notes, pursuant to Section 1(a)(i)(AA) of the Administration Agreement.

      All notices of redemption shall state:

               (i) the Redemption Date;

               (ii) the Redemption Price; and

               (iii) the place where such Notes are to be surrendered for
          payment of the Redemption Price (which shall be the office or agency
          of the Issuer to be maintained as provided in Section 3.02).

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

          Section 10.03 Notes Payable on Redemption Date. The Notes or portions
thereof to be redeemed shall, following notice of redemption (if any) as
required by Section 10.02, on the Redemption Date become due and payable at the
Redemption Price and (unless the Issuer shall default in the payment of the
Redemption Price) no interest shall accrue on the Redemption Price for any
period after the date to which accrued interest is calculated for purposes of
calculating the Redemption Price.

                                   ARTICLE XI

                                  MISCELLANEOUS

          Section 11.01 Compliance Certificates and Opinions, etc.

          (a) Upon any application or request by the Issuer to the Indenture
Trustee to take any action under any provision of this Indenture, the Issuer
shall furnish to the Indenture Trustee (i) an Officer's Certificate stating that
all conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with, (ii) an Opinion of Counsel stating that
in the opinion of such counsel all such conditions precedent, if any, have been
complied with and (iii) (if required by the TIA) an Independent Certificate from
a firm of certified public accountants meeting the applicable requirements of
this Section. Notwithstanding the foregoing, in the case of any such application
or request as to which the furnishing of such documents is specifically required
by any provision of this Indenture, no additional certificate or opinion need be
furnished.

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

                                      -53-
<PAGE>
               (i) a statement that each signatory of such certificate or
      opinion has read or has caused to be read such covenant or condition and
      the definitions herein relating thereto;

               (ii) a brief statement as to the nature and scope of the
      examination or investigation upon which the statements or opinions
      contained in such certificate or opinion are based;

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

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

      (b) (i) Prior to the deposit of any property or securities with the
Indenture Trustee that is to be made the basis for the release of any Collateral
subject to the lien created by this Indenture, the Issuer shall, in addition to
any obligation imposed in Section 11.01(a) or elsewhere in this Indenture,
furnish to the Indenture Trustee and the Insurer an Officer's Certificate
certifying or stating the opinion of the signer thereof as to the fair value
(within 90 days of such deposit) to the Issuer of the property or securities to
be so deposited.

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

               (iii) Whenever any property or securities are to be released from
      the lien created by this Indenture, the Issuer shall also furnish to the
      Indenture Trustee and the Insurer an Officer's Certificate certifying or
      stating the opinion of each person signing such certificate as to the fair
      value (within 90 days of such release) of the property or securities
      proposed to be released and stating that in the opinion of such person the
      proposed release will not impair the security created by this Indenture in
      contravention of the provisions hereof.

               (iv) Whenever the Issuer is required to furnish to the Indenture
      Trustee and the Insurer an Officer's Certificate certifying or stating the
      opinion of any

                                      -54-
<PAGE>
      signer thereof as to the matters described in clause (iii) above, the
      Issuer shall also furnish to the Indenture Trustee and the Insurer an
      Independent Certificate as to the same matters if the fair value of the
      property or securities and of all other property or securities released
      from the lien created by this Indenture since the commencement of the then
      current fiscal year, as set forth in the Officer's Certificate required by
      clause (iii) above and this clause (iv), equals 10% or more of the
      Outstanding Amount of the Notes, but such Officer's Certificate need not
      be furnished in the case of any release of property or securities if the
      fair value thereof as set forth in the related Officer's Certificate is
      less than $25,000 or less than one percent of the then Outstanding Amount
      of the Notes.

         Section 11.02 Form of Documents Delivered to Indenture Trustee. In any
case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may certify
or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion
as to such matters in one or several documents.

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

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

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

         Section 11.03 Acts of Noteholders.

                                      -55-
<PAGE>
      (a) Any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Indenture to be given or taken by Noteholders
may be embodied in and evidenced by one or more instruments of substantially
similar tenor signed by such Noteholders in person or by agents duly appointed
in writing; and except as herein otherwise expressly provided, such action shall
become effective when such instrument or instruments are delivered to the
Indenture Trustee, and, where it is hereby expressly required, to the Issuer.
Such instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the Noteholders
signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for any
purpose of this Indenture and (subject to Section 6.01) conclusive in favor of
the Indenture Trustee and the Issuer, if made in the manner provided in this
Section.

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

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

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

      Section 11.04 Notices, etc., to Indenture Trustee, Issuer, Insurer and
Rating Agencies.

      (a) Any request, demand, authorization, direction, notice, consent, waiver
or Act of Noteholders or other documents provided or permitted by this Indenture
shall be in writing and if such request, demand, authorization, direction,
notice, consent, waiver or Act of Noteholders is to be made upon, given or
furnished to or filed with:

               (i) the Indenture Trustee by any Noteholder or by the Issuer
      shall be sufficient for every purpose hereunder if in writing, personally
      delivered, sent by facsimile transmission and confirmed or mailed by
      overnight service, to or with the Indenture Trustee at its Corporate Trust
      Office;

               (ii) the Issuer by the Indenture Trustee or by any Noteholder
      shall be sufficient for every purpose hereunder if in writing, personally
      delivered, sent by facsimile transmission and confirmed or mailed by
      overnight service, to the Issuer addressed to: Onyx Acceptance Owner Trust
      2003-B, in care of The Bank of New York (Delaware), as Owner Trustee, 502
      White Clay Center, P.O. Box 6973, Newark, Delaware 19714, Attention:
      Corporate Trust Department, or at any other address furnished in writing
      to the Indenture Trustee by the Issuer; or

               (iii) the Insurer by the Issuer or the Indenture Trustee shall be
      sufficient for any purpose hereunder if in writing, personally delivered,
      sent by facsimile transmission and confirmed or mailed by overnight
      service, to the Insurer

                                      -56-
<PAGE>
      addressed to: MBIA Insurance Corporation, 113 King Street, Armonk, New
      York 10504, Attention: Insured Portfolio Management, Structured Finance.

      (b) Notices required to be given to the Rating Agencies by the Issuer, the
Indenture Trustee or the Owner Trustee shall be in writing, personally
delivered, sent by facsimile transmission and confirmed or mailed by overnight
service, to (i) in the case of Moody's, at the following address: Moody's
Investors Service, Inc., ABS Monitoring Department, 99 Church Street, New York,
New York 10007 and (ii) in the case of Standard & Poor's, at the following
address: Standard & Poor's Ratings Services, 55 Water Street (41st Floor), New
York, New York 10041, Attention: Asset Backed Surveillance Department; or as to
each of the foregoing, at such other address as shall be designated by written
notice to the other parties.

          Section 11.05 Notices to Noteholders; Waiver. Where this Indenture
provides for notice to Noteholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class, postage prepaid to each Noteholder affected by such
event, at his address as it appears on the Note Register, not later than the
latest date, and not earlier than the earliest date, prescribed for the giving
of such notice. In any case where notice to Noteholders is given by mail,
neither the failure to mail such notice nor any defect in any notice so mailed
to any particular Noteholder shall affect the sufficiency of such notice with
respect to other Noteholders, and any notice that is mailed in the manner herein
provided shall conclusively be presumed to have been duly given.

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

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

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

          Section 11.06 Alternate Payment and Notice Provisions. Notwithstanding
any provision of this Indenture or any of the Notes to the contrary, the Issuer
may enter into any agreement with any Holder of a Note providing for a method of
payment, or notice by the Indenture Trustee or any Paying Agent to such Holder,
that is different from the methods provided for in this Indenture for such
payments or notices. The Issuer will furnish to the Indenture Trustee a copy of
each such agreement and the Indenture Trustee will cause payments to be made and
notices to be given in accordance with such agreements.

                                      -57-
<PAGE>
      Section 11.07 Conflict With Trust Indenture Act. If any provision hereof
limits, qualifies or conflicts with another provision hereof that is required to
be included in this indenture by any of the provisions of the Trust Indenture
Act, such required provision shall control.

      The provisions of TIA Sections 310 through 317 that impose duties on any
Person (including the provisions automatically deemed included herein unless
expressly excluded by this Indenture) are a part of and govern this Indenture,
whether or not physically contained herein.

      Section 11.08 Effect of Headings and Table of Contents. The Article and
Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

      Section 11.09 Successors and Assigns. All covenants and agreements in this
Indenture and the Notes by the Issuer shall bind its successors and assigns,
whether so expressed or not. All agreements of the Indenture Trustee in this
Indenture shall bind its successors, co-trustees and agents.

      Section 11.10 Severability. In case any provision in this Indenture or in
the Notes shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

      Section 11.11 Benefits of Indenture. The Insurer and its successors and
assigns shall be a third-party beneficiary to the provisions of this Indenture,
and shall be entitled to rely upon and directly to enforce such provisions of
this Indenture so long as no Insurer Default shall have occurred and be
continuing. Nothing in this Indenture or in the Notes, express or implied, shall
give to any Person, other than the parties hereto and their successors
hereunder, and the Noteholders, and any other party secured hereunder, and any
other Person with an ownership interest in any part of the Collateral, any
benefit or any legal or equitable right, remedy or claim under this Indenture.
The Insurer may disclaim any of its rights and powers under this Indenture, but
not its duties and obligations under the Policy, upon delivery of a written
notice to the Indenture Trustee.

      Section 11.12 Legal Holidays. In any case where the date on which any
payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Notes or this Indenture) payment need not be made on such date,
but may be made on the next succeeding Business Day with the same force and
effect as if made on the date on which nominally due, and no interest shall
accrue for the period from and after any such nominal date.

      Section 11.13 Governing Law. THIS INDENTURE SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS,
AND REMEDIES OF THE PARTIES UNDER THIS INDENTURE SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

      Section 11.14 Counterparts. This Indenture may be executed in several
counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.

                                      -58-
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      Section 11.15 Recording of Indenture. If this Indenture is subject to
recording in any appropriate public recording offices, such recording is to be
effected by the Issuer and at its expense accompanied by an Opinion of Counsel
(which may be counsel to the Indenture Trustee or any other counsel reasonably
acceptable to the Indenture Trustee and the Insurer) to the effect that such
recording is necessary either for the protection of the Noteholders or any other
Person secured hereunder or for the enforcement of any right or remedy granted
to the Indenture Trustee under this Indenture.

      Section 11.16 Trust Obligation. The parties hereto, by entering into this
Indenture, and each Noteholder, by accepting a Note (and each Note Owner, by its
acceptance of an interest in the applicable Book-Entry Note), hereby covenant
and agree that no recourse may be taken, directly or indirectly, with respect to
the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the
Notes or under this Indenture or any certificate or other writing delivered in
connection herewith or therewith, against (i) the Indenture Trustee, the Owner
Trustee or the Trust Agent, in its individual capacity, or the Seller or the
Administrator, (ii) any owner of a beneficial interest in the Issuer or (iii)
any partner, owner, beneficiary, agent, officer, director, employee or agent of
the Indenture Trustee, the Owner Trustee or the Trust Agent, in its individual
capacity, or the Seller or the Administrator, any holder of a beneficial
interest in the Issuer, the Owner Trustee, the Indenture Trustee or the Trust
Agent or of any successor or assign of such Persons, except as any such Person
may have expressly agreed (it being understood that the Indenture Trustee, the
Owner Trustee and the Trust Agent have no such obligations in their individual
capacity) and except that any such partner, owner or beneficiary shall be fully
liable, to the extent provided by applicable law, for any unpaid consideration
for stock, unpaid capital contribution or failure to pay any installment or call
owing to such entity. For all purposes of this Indenture, in the performance of
any duties or obligations of the Issuer hereunder, the Owner Trustee shall be
subject to, and entitled to the benefits of, the terms and provisions of
Articles VI, VII and VIII of the Trust Agreement.

      Section 11.17 No Petition. The parties hereto, by entering into this
Indenture, and each Noteholder, by accepting a Note or a beneficial interest in
a Note, hereby covenant and agree that they will not at any time institute
against the Seller or the Issuer, or join in any institution against the Seller
or the Issuer of, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other proceedings under any United States federal or
state bankruptcy or similar law in connection with any obligations relating to
the Notes, this Indenture or any of the other Basic Documents.

      Section 11.18 Inspection. The Issuer agrees that, on reasonable prior
notice, it will permit any representative of the Indenture Trustee or of the
Insurer, during the Issuer's normal business hours, to examine all the books of
account, records, reports and other papers of the Issuer, to make copies and
extracts therefrom, to cause such books to be audited by independent certified
public accountants, and to discuss the Issuer's affairs, finances and accounts
with the Issuer's officers, employees and independent certified public
accountants, all at such reasonable times and as often as may be reasonably
requested. The Indenture Trustee and the Insurer shall and shall cause their
respective representatives to hold in confidence all such information except to
the extent disclosure may be required by law (and all reasonable applications
for confidential treatment are unavailing) and except to the extent that the
Indenture

                                      -59-
<PAGE>
Trustee or the Insurer may reasonably determine that such disclosure is
consistent with its obligations hereunder.

      Section 11.19 Limitation of Liability of Owner Trustee. Notwithstanding
anything contained herein to the contrary, this instrument has been
countersigned by The Bank of New York (Delaware) not in its individual capacity
but solely in its capacity as Owner Trustee of the Issuer and in no event shall
The Bank of New York (Delaware) in its individual capacity or any beneficial
owner of the Issuer have any liability for the representations, warranties,
covenants, agreements or other obligations of the Issuer hereunder, as to all of
which recourse shall be had solely to the assets of the Issuer. For all purposes
of this Agreement, in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
of, the terms and provisions of Articles VI, VII and VIII of the Trust
Agreement. Notwithstanding anything herein to the contrary, Section 2.07 of the
Trust Agreement shall remain in full force and effect.

      Section 11.20 Certain Matters Regarding the Insurer. So long as an Insurer
Default shall not have occurred and be continuing, the Insurer shall have the
right to exercise all rights, including voting rights, which the Noteholders or
Residual Interestholders are entitled to exercise pursuant to this Indenture,
without any consent of such Noteholders or Residual Interestholders; provided,
however, that without the consent of each Noteholder or Residual Interestholder
affected thereby, the Insurer shall not exercise such rights to amend this
Indenture in any manner that would (i) reduce the amount of, or delay the timing
of, collections of payments on the Contracts or distributions which are required
to be made on any Note or Residual Interest Instrument, (ii) adversely affect in
any material respect the interests of the Holders of any Notes or Residual
Interest Instruments, or (iii) alter the rights of any such Holder to consent to
such amendment.

      Notwithstanding any provision in this Indenture to the contrary, in the
event an Insurer Default shall have occurred and be continuing, the Insurer
shall not have the right to take any action under this Agreement or to control
or direct the actions of the Trust, the Seller, the Indenture Trustee, the Owner
Trustee or the Trust Agent pursuant to the terms of this Indenture, nor shall
the consent of the Insurer be required with respect to any action (or waiver of
a right to take action) to be taken by the Trust, the Seller, the Indenture
Trustee, the Owner Trustee, the Trust Agent or the Holders of the Notes or the
Residual Interest Instruments pursuant to the terms of this Indenture; provided,
that the consent of the Insurer shall be required at all times with respect to
any amendment of this Indenture.

                                      -60-
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed and delivered as of the day and year first above written.

                           ONYX ACCEPTANCE OWNER TRUST 2003-B

                           By:      THE BANK OF NEW YORK
                                     (DELAWARE),
                                    not in its individual capacity but solely on
                                    behalf of the Issuer as Owner Trustee under
                                    the Trust Agreement

                           By:__________________________________________________
                           Name:________________________________________________
                           Title:_______________________________________________

                           CITIBANK, N.A.,
                           not in its individual capacity but solely
                           as Indenture Trustee

                           By:__________________________________________________
                           Name:________________________________________________
                           Title:_______________________________________________
<PAGE>
                                   SCHEDULE A

                              SCHEDULE OF CONTRACTS

Schedules of Contracts on file at the offices of the Seller, the Servicer, the
Owner Trustee and the Insurer.
<PAGE>
                                    EXHIBIT A

                          FORM OF DEPOSITORY AGREEMENT

                                [See Tab No. 14]
<PAGE>
                                    EXHIBIT B

                             FORM OF CLASS A-1 NOTE

                              [Begins on Next Page]
<PAGE>
                                    EXHIBIT C

                             FORM OF CLASS A-2 NOTE

                              [Begins on Next Page]
<PAGE>
                                    EXHIBIT D

                             FORM OF CLASS A-3 NOTE

                              [Begins on Next Page]
<PAGE>
                                    EXHIBIT E

                             FORM OF CLASS A-4 NOTE

                              [Begins on Next Page]<PAGE>
                                                                 EXHIBIT 4.7

                                 TRUST AGREEMENT

                                      among

                     ONYX ACCEPTANCE FINANCIAL CORPORATION,
                                  as Depositor

                        THE BANK OF NEW YORK (DELAWARE),
                                as Owner Trustee

                                       and

                                 CITIBANK, N.A.,
                                 as Trust Agent

                             Dated as of May 1, 2003

                       ONYX ACCEPTANCE OWNER TRUST 2003-B
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                                             Page
                                                                                                             ----

<S>                                                                                                           <C>
ARTICLE I DEFINITIONS....................................................................................     1
   Section 1.01         Capitalized Terms................................................................     1
   Section 1.02         Other Definitional Provisions....................................................     4
   Section 1.03         Usage of Terms...................................................................     4
   Section 1.04         Section References...............................................................     5
   Section 1.05         Accounting Terms.................................................................     5

ARTICLE II ORGANIZATION..................................................................................     5
   Section 2.01         Name.............................................................................     5
   Section 2.02         Office...........................................................................     5
   Section 2.03         Purposes and Powers..............................................................     5
   Section 2.04         Appointment of Owner Trustee.....................................................     6
   Section 2.05         Initial Capital Contribution of Owner Trust Estate...............................     6
   Section 2.06         Declaration of Trust.............................................................     6
   Section 2.07         Title to Trust Estate............................................................     6
   Section 2.08         Situs of Trust...................................................................     7
   Section 2.09         Representations and Warranties of the Depositor..................................     7
   Section 2.10         Federal Income Tax Allocations...................................................     8
   Section 2.11         Separateness Covenants...........................................................     8

ARTICLE III RESIDUAL INTEREST INSTRUMENTS AND TRANSFER OF INTERESTS......................................     9
   Section 3.01         Initial Ownership................................................................     9
   Section 3.02         The Residual Interest Instruments and the Notes..................................     9
   Section 3.03         Execution, Authentication and Delivery of Residual Interest Instruments
                        and Notes........................................................................     9
   Section 3.04         Registration of Transfer and Exchange of Residual Interest Instruments...........    10
   Section 3.05         Mutilated, Destroyed, Lost or Stolen Residual Interest Instruments...............    11
   Section 3.06         Persons Deemed Owners............................................................    11
   Section 3.07         Access to List of Owners' Names and Addresses....................................    11
   Section 3.08         Maintenance of Office or Agency..................................................    12
   Section 3.09         Temporary Residual Interest Instruments..........................................    12
   Section 3.10         Appointment of Paying Agent......................................................    12
   Section 3.11         Restrictions on Transfer of Residual Interest Instruments........................    13

ARTICLE IV ACTIONS BY OWNER TRUSTEE......................................................................    14
   Section 4.01         Prior Notice to Owners with Respect to Certain Matters...........................    14
   Section 4.02         Action by Owners with Respect to Certain Matters.................................    15
   Section 4.03         Action by Owners with Respect to Bankruptcy......................................    15
   Section 4.04         Restrictions on Owners' Power....................................................    15
   Section 4.05         Majority Control.................................................................    15
   Section 4.06         Certain Litigation Matters.......................................................    15
</TABLE>

                                      -i-
<PAGE>
<TABLE>

<S>                                                                                                          <C>
ARTICLE V APPLICATION OF TRUST FUNDS; CERTAIN DUTIES.....................................................    16
   Section 5.01         Establishment of the Residual Distribution Account...............................    16
   Section 5.02         Application of Trust Funds.......................................................    16
   Section 5.03         Method of Payment................................................................    17
   Section 5.04         No Segregation of Monies; No Interest............................................    17
   Section 5.05         Accounting and Reports to the Owners, the Internal Revenue Service and Others....    17
   Section 5.06         Signature on Returns; Tax Matters Partner........................................    17

ARTICLE VI AUTHORITY AND DUTIES OF OWNER TRUSTEE AND TRUST AGENT.........................................    18
   Section 6.01         General Authority................................................................    18
   Section 6.02         General Duties...................................................................    18
   Section 6.03         Action Upon Instruction..........................................................    18
   Section 6.04         No Duties Except as Specified in this Agreement or in Instructions...............    19
   Section 6.05         No Action Except Under Specified Documents or Instructions.......................    20
   Section 6.06         Restrictions.....................................................................    20

ARTICLE VII CONCERNING THE OWNER TRUSTEE AND THE TRUST AGENT.............................................    20
   Section 7.01         Acceptance of Trusts and Duties..................................................    20
   Section 7.02         Furnishing of Documents..........................................................    23
   Section 7.03         Representations and Warranties...................................................    23
   Section 7.04         Reliance; Advice of Counsel......................................................    24
   Section 7.05         Not Acting in Individual Capacity................................................    24
   Section 7.06         Owner Trustee and Trust Agent Not Liable for Residual Interest
                        Instruments, Notes or Contracts..................................................    24
   Section 7.07         Owner Trustee and Trust Agent May Own Residual Interest Instruments
                        and Notes........................................................................    25

ARTICLE VIII COMPENSATION AND INDEMNIFICATION OF OWNER TRUSTEE AND TRUST AGENT...........................    25
   Section 8.01         Owner Trustee's and Trust Agent's Fees and Expenses..............................    25
   Section 8.02         Indemnification..................................................................    25
   Section 8.03         Payments to the Owner Trustee or Trust Agent.....................................    26

ARTICLE IX TERMINATION OF TRUST AGREEMENT................................................................    26
   Section 9.01         Termination of Trust Agreement...................................................    26

ARTICLE X SUCCESSOR OWNER TRUSTEES, ADDITIONAL OWNER TRUSTEE AND TRUST AGENT.............................    27
   Section 10.01        Eligibility Requirements for Owner Trustee.......................................    27
   Section 10.02        Resignation or Removal of Owner Trustee..........................................    27
   Section 10.03        Successor Owner Trustee..........................................................    28
   Section 10.04        Merger or Consolidation of Owner Trustee.........................................    28
   Section 10.05        Appointment of Co-Trustee or Separate Trustee....................................    29
   Section 10.06        Appointment of Trust Agent.......................................................    29

ARTICLE XI MISCELLANEOUS.................................................................................    30
</TABLE>

                                      -ii-
<PAGE>
<TABLE>

<S>                                                                                                          <C>
   Section 11.01        Supplements and Amendments.......................................................    30
   Section 11.02        [RESERVED].......................................................................    32
   Section 11.03        Limitations on Rights of Others..................................................    32
   Section 11.04        Notices..........................................................................    32
   Section 11.05        Severability of Provisions.......................................................    32
   Section 11.06        Counterparts.....................................................................    32
   Section 11.07        Successors and Assigns...........................................................    32
   Section 11.08        No Petition......................................................................    33
   Section 11.09        No Recourse......................................................................    33
   Section 11.10        Residual Interest Instruments Nonassessable and Fully Paid.......................    33
   Section 11.11        Headings.........................................................................    33
   Section 11.12        Governing Law....................................................................    33
   Section 11.13        Depositor Payment Obligation.....................................................    33
   Section 11.14        Certain Matters Regarding the Insurer............................................    34
   Section 11.15        Fiduciary Duties.................................................................    34

</TABLE>

                                     -iii-
<PAGE>
                                    EXHIBITS

Exhibit A         -       Form of Certificate of Trust
Exhibit B         -       Form of Residual Interest Instrument

                                      -iv-
<PAGE>
      This TRUST AGREEMENT, dated as of May 1, 2003, is among ONYX ACCEPTANCE
FINANCIAL CORPORATION, a Delaware corporation (the "DEPOSITOR"), THE BANK OF NEW
YORK (DELAWARE), a Delaware banking corporation, as owner trustee (the "OWNER
TRUSTEE"), and Citibank, N.A., a national banking association, as agent of the
Owner Trustee for the limited purposes set forth herein (the "TRUST AGENT").

                                   ARTICLE I

                                   DEFINITIONS

      Section 1.01 Capitalized Terms. Except as otherwise provided in this
Agreement, whenever used in this Agreement the following words and phrases,
unless the context otherwise requires, shall have the following meanings:

      "ADMINISTRATION AGREEMENT" means the administration agreement, dated as of
May 1, 2003, among the Trust, the Depositor, the Indenture Trustee, the Trust
Agent and Onyx, as administrator.

      "ADMINISTRATOR" means the Person acting as "Administrator" under the
Administration Agreement.

      "AGREEMENT" means this Trust Agreement, as the same may be amended and
supplemented from time to time.

      "BENEFIT PLAN" means (i) an employee benefit plan (as such term is defined
in Section 3(3) of ERISA) that is subject to the provisions of Title I of ERISA,
(ii) a plan described in Section 4975(e)(1) of the Code or (iii) any entity
whose underlying assets include plan assets by reason of a plan's investment in
the entity.

      "CERTIFICATE OF TRUST" means the Certificate of Trust filed for the Trust
pursuant to Section 3810(a) of the Statutory Trust Statute, substantially in the
form of Exhibit A hereto.

      "CERTIFICATE REGISTER" and "Certificate Registrar" mean the register
maintained and the registrar (or any successor thereto) appointed pursuant to
Section 3.04.

      "CLOSING DATE" means May 16, 2003.

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

      "COMMISSION" means the United States Securities and Exchange Commission.

      "DEPOSITOR" means Onyx Acceptance Financial Corporation in its capacity as
depositor hereunder, and its successors.
<PAGE>
      "DOMESTIC" when applied to a corporation or partnership, means created or
organized in the United States or under the law of the United States or of any
state of the United States unless, in the case of a partnership, the Secretary
of Treasury provides otherwise by regulations.

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

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

      "FOREIGN ESTATE" means an estate the income of which, from sources outside
the United States which are not effectively connected with the conduct of a
trade or business within the United States, is not includible in gross income
for United States federal income tax purposes.

      "GRANT" shall have the meaning assigned to such term in Section 2.03.

      "INDENTURE" means the indenture dated as of May 1, 2003, between the
Trust, as Issuer, and Citibank, N.A., as Indenture Trustee.

      "INSURER" means MBIA Insurance Corporation, and its successors.

      "NOTE DISTRIBUTION ACCOUNT" shall have the meaning assigned to such term
in the Sale and Servicing Agreement.

      "NOTES" means the Class A-1 Notes, the Class A-2 Notes, the Class A-3
Notes and the Class A-4 Notes, in each case issued pursuant to the Indenture.

      "ONYX" means Onyx Acceptance Corporation, and its successors.

      "OWNER" means each Person in whose name a Residual Interest Instrument is
registered in the Certificate Register.

      "OWNER TRUSTEE" means The Bank of New York (Delaware), a Delaware banking
corporation, not in its individual capacity but solely as owner trustee under
this Agreement, and any successor Owner Trustee hereunder.

      "OWNER TRUSTEE CORPORATE Trust Office" means the office of the Owner
Trustee at which its corporate trust business shall be administered, which
initially shall be 502 White Clay Center, P.O. Box 6973, Newark, Delaware 19714,
Attention: Corporate Trust Department, or such other office at such other
address as the Owner Trustee may designate from time to time by notice to the
Owners, the Servicer, the Depositor and the Insurer.

      "PAYING AGENT" means the Trust Agent or any successor in interest thereto
or any other paying agent or co-paying agent appointed pursuant to Section 3.10
and authorized by the Issuer to make payments to and distributions from the
Residual Distribution Account.

      "PERCENTAGE INTEREST" means with respect to each Residual Interest
Instrument, the percentage portion of the Residual Interest evidenced thereby as
stated on the face of such Residual Interest Instrument.

                                      -2-
<PAGE>
      "PERSON" means a legal person, including any individual, corporation,
estate, partnership, joint venture, association, joint stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.

      "PROTECTED PURCHASER" shall have the meaning given such term in the UCC.

      "RECORD DATE" means, with respect to any Distribution Date, the day
immediately preceding such Distribution Date.

      "RESIDUAL DISTRIBUTION ACCOUNT" means the account established and
maintained as such pursuant to Section 5.01.

      "RESIDUAL INTEREST" means the residual interest in the Trust, which
represents the right to receive amounts to be distributed or paid to holders of
the "Residual Interests" (as defined in the Sale and Servicing Agreement),
pursuant to the terms of the Sale and Servicing Agreement.

      "RESIDUAL INTEREST INSTRUMENT" means an instrument substantially in the
form attached as Exhibit B hereto and evidencing the Residual Interest.

      "RESPONSIBLE OFFICER" means, with respect to the Owner Trustee, any
officer within the Owner Trustee Corporate Trust Office, and with respect to the
Trust Agent, any officer within the Trust Agent Office, including any Vice
President, assistant secretary or other officer or assistant officer of the
Owner Trustee or the Trust Agent, as the case may be, customarily performing
functions similar to those performed by the people who at such time shall be
officers and has direct responsibility for the administration of this Agreement.

      "SALE AND SERVICING AGREEMENT" means the sale and servicing agreement,
dated as of May 1, 2003, among the Trust, as Issuer, the Depositor, as Seller,
Onyx, as Servicer and Custodian, the Indenture Trustee and the Trust Agent as
the same may be amended or supplemented from time to time.

      "SECRETARY OF STATE" means the Secretary of State of the State of
Delaware.

      "SELLER" means Onyx Acceptance Financial Corporation, in its capacity as
seller under the Sale and Servicing Agreement, and its successors.

      "STATUTORY TRUST STATUTE" means Chapter 38 of Title 12 of the Delaware
Code, 12 Del. C. Section 3801, et seq., as the same may be amended from time to
time.

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

      "TRUST" means the statutory trust established by this Agreement.

                                      -3-
<PAGE>
      "TRUST AGENT" means Citibank, N.A., a national banking association, not in
its individual capacity but solely as agent of the Owner Trustee under this
Agreement, and any successor Trust Agent hereunder.

      "TRUST AGENT OFFICE" means the office of the Trust Agent at 111 Wall
Street, 14th Floor, Zone 3, New York, New York 10005, Attention: Institutional
Trust Services - Onyx Acceptance Owner Trust 2003-B or such other office at such
other address as the Trust Agent may designate from time to time by notice to
the Owners, the Servicer, the Depositor and the Insurer.

      "TRUST ESTATE" means all right, title and interest of the Trust in and to
the Collateral.

      "UCC" means the Uniform Commercial Code as in effect in the State of New
York.

      "UNDERWRITERS" means Merrill Lynch, Pierce, Fenner & Smith Incorporated
and Credit Suisse First Boston LLC.

      "UNITED STATES PERSON" means

               (A) a citizen or resident of the United States,

               (B) a Domestic partnership or Domestic limited liability company,

               (C) a Domestic corporation,

               (D) any estate (other than a Foreign Estate), and

               (E) any trust if --

                        (i)   a court within the United States is able to
                              exercise primary supervision over the
                              administration of the trust, and

                        (ii)  one or more United States persons have the
                              authority to control all substantial decisions of
                              the trust.

      Section 1.02 Other Definitional Provisions. Capitalized terms used that
are not otherwise defined herein shall have the meanings ascribed thereto in the
Sale and Servicing Agreement or, if not defined therein, in the Indenture.

      Section 1.03 Usage of Terms. With respect to all terms in this Agreement,
the singular includes the plural and the plural the singular; words importing
any gender include the other genders; 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
amendments, modifications and supplements thereto or any changes therein entered
into in accordance with their respective terms and not prohibited by this
Agreement; references to Persons include their permitted successors and assigns;
and the term "including" means "including without limitation".

                                      -4-
<PAGE>
      Section 1.04 Section References. All section references, unless otherwise
indicated, shall be to Sections in this Agreement.

      Section 1.05 Accounting Terms. All accounting terms used but not
specifically defined herein shall be construed in accordance with generally
accepted accounting principles in the United States.

                                   ARTICLE II

                                  ORGANIZATION

      Section 2.01 Name. The Trust created hereby shall be known as Onyx
Acceptance Owner Trust 2003-B, in which name the Owner Trustee may conduct the
activities of the Trust, make and execute contracts and other instruments on
behalf of the Trust and sue and be sued, and in which name the Owner Trustee may
perform its duties hereunder.

      Section 2.02 Office. The office of the Trust shall be in care of the Owner
Trustee at the Owner Trustee Corporate Trust Office or at such other address in
Delaware as the Owner Trustee may designate by written notice to the Owners, the
Depositor, the Servicer and the Insurer.

      Section 2.03 Purposes and Powers. The sole purpose of the Trust is to hold
or conserve the Trust Estate and collect and disburse the periodic income
therefrom for the use and benefit of the Owners, and in furtherance of such
purpose to engage in the following ministerial activities:

               (i) to issue the Notes pursuant to the Indenture, to sell the
      Notes, and to issue Residual Interest Instruments pursuant to this
      Agreement;

               (ii) with the proceeds of the sale of the Notes, to purchase the
      Contracts, and to pay the organizational, start-up and transactional
      expenses of the Trust and to pay the balance to the Depositor pursuant to
      the Sale and Servicing Agreement;

               (iii) to assign, grant, transfer, pledge, mortgage and convey
      ("Grant") the Trust Estate pursuant to the Indenture and to hold, manage
      and distribute to the Owners pursuant to this Agreement any portion of the
      Trust Estate released from the Lien of, and remitted to the Trust pursuant
      to, the Indenture;

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

               (v) subject to compliance with the Basic Documents, to engage in
      such other activities as may be required in connection with conservation
      of the Trust Estate and the making of distributions to the Owners and the
      Noteholders; and

               (vi) to engage in those activities, including entering into
      agreements, that are necessary to accomplish the foregoing or are
      incidental thereto or connected therewith.

                                      -5-
<PAGE>
The Trust is hereby authorized to engage in the foregoing activities. Other than
pursuant to this Agreement, or in connection with or incidental to the
provisions or purposes of this Agreement, the Trust shall not (i) issue debt or
otherwise borrow money, (ii) merge or consolidate with any other entity,
reorganize, liquidate or transfer all or substantially all of its assets to any
other entity or (iii) otherwise engage in any activity or exercise any power not
provided for in this Agreement or the Basic Documents. However, all action taken
by the Owner Trustee on behalf of the Trust prior to the Closing Date in
connection with the filing of an Application for Licensure Sales Finance Company
in Pennsylvania is hereby ratified.

      Section 2.04 Appointment of Owner Trustee. The Depositor hereby appoints
the Owner Trustee as trustee of the Trust effective as of the date hereof, to
have all the rights, powers and duties set forth herein and in the Statutory
Trust Statute, and the Owner Trustee hereby accepts such appointment. The Owner
Trustee is hereby authorized and directed to file the Certificate of Trust with
the Secretary of State.

      Section 2.05 Initial Capital Contribution of Owner Trust Estate. The
Depositor hereby sells, assigns, transfers, conveys and sets over to the Owner
Trustee, as of the date hereof, the sum of $1.00. The Owner Trustee hereby
acknowledges receipt in trust from the Depositor, as of the date hereof, of the
foregoing contribution, which shall constitute the initial Trust Estate. The
Depositor shall pay organizational expenses of the Trust as they may arise or
shall, upon the request of the Owner Trustee or the Trust Agent, as applicable,
promptly reimburse the Owner Trustee and the Trust Agent, respectively, for any
such expenses paid by the Owner Trustee or the Trust Agent, as applicable.

      Section 2.06 Declaration of Trust. The Owner Trustee hereby declares that
it will hold the Trust Estate in trust upon and subject to the conditions set
forth herein for the sole purpose of conserving the Trust Estate and collecting
and disbursing the periodic income therefrom for the use and benefit of the
Owners, subject to the obligations of the Trust under the Basic Documents. It is
the intention of the parties hereto that the Trust constitute a statutory trust
under the Statutory Trust Statute and that this Agreement constitute the
governing instrument of such statutory trust. It is the intention of the parties
hereto that, solely for income and franchise tax purposes, on and after the
Closing Date (i) so long as there is a sole Residual Interestholder, the Trust
shall be disregarded as an entity separate from the sole Residual
Interestholder, and (ii) if there is more than one Residual Interestholder, the
Trust shall be treated as a partnership, with the assets of the partnership
being the Contracts and other assets held by the Trust, and with the partners of
the partnership being the Owners of the Residual Interest Instruments, and the
Notes being debt of the partnership. The Trust shall not elect to be treated as
an association under Treasury Regulation Section 301.7701-3(a) for federal
income tax purposes. The parties agree that, unless otherwise required by
appropriate tax authorities, the Trust will file or cause to be filed annual or
other necessary returns, reports and other forms consistent with the
characterization of the Trust as provided in the second preceding sentence.
Effective as of the date hereof, the Owner Trustee shall have all rights, powers
and duties set forth herein and in the Statutory Trust Statute for the sole
purpose and to the extent necessary to accomplish the purposes of the Trust as
set forth in Section 2.03.

      Section 2.07 Title to Trust Estate. Subject to the Indenture, legal title
to all the Trust Estate shall be vested at all times in the Trust as a separate
legal entity except where applicable

                                      -6-
<PAGE>
law in any jurisdiction requires title to any part of the Trust Estate to be
vested in a trustee or trustees, in which case title shall be deemed to be
vested in the Owner Trustee and/or a separate trustee, as the case may be.

      The Owners shall not have legal title to any part of the Trust Estate. The
Owners shall be entitled to receive distributions with respect to their
undivided ownership interest therein only in accordance with Articles V and IX
of this Agreement. No transfer, by operation of law or otherwise, of any right,
title or interest of the Owners to and in their ownership interest in the Trust
Estate shall operate to terminate this Agreement or the trusts hereunder or
entitle any transferee to an accounting or to the transfer to it of legal title
to any part of the Trust Estate.

      Section 2.08 Situs of Trust. The Trust will be located and administered in
the State of Delaware or the State of New York. All bank accounts maintained on
behalf of the Trust shall be located in the State of California, the State of
Delaware or the State of New York. The Trust shall not have any employees in any
state other than Delaware; provided, however, that nothing herein shall restrict
or prohibit the Owner Trustee from having employees within or without the State
of Delaware. Payments will be received by the Trust only in California, Delaware
or New York and payments will be made by the Trust only from California,
Delaware or New York. The only office of the Trust will be at the Owner Trustee
Corporate Trust Office.

      Section 2.09 Representations and Warranties of the Depositor.

      (a) The Depositor hereby represents and warrants to the Owner Trustee and
the Insurer that:

               (i) The Depositor is duly organized and validly existing as a
      corporation organized and existing and in good standing under the laws of
      the State of Delaware, with power and authority to own its properties and
      to conduct its business and had at all relevant times, and has, power,
      authority and legal right to acquire and own the Contracts.

               (ii) The Depositor 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 property
      or the conduct of its business requires such qualifications.

               (iii) The Depositor has the power and authority to execute and
      deliver this Agreement and to carry out its terms; the Depositor has full
      power and authority to sell and assign the property to be sold and
      assigned to and deposited with the Owner Trustee on behalf of the Trust as
      part of the Trust Estate and has duly authorized such sale and assignment
      and deposit with the Owner Trustee on behalf of the Trust by all necessary
      corporate action. The execution, delivery and performance of this
      Agreement have been duly authorized by the Depositor by all necessary
      corporate action. The Depositor has duly executed and delivered this
      Agreement, and this Agreement constitutes the legal, valid and binding
      obligation of the Depositor enforceable against the Depositor in
      accordance with its terms.

               (iv) The consummation of the transactions contemplated by this
      Agreement and the fulfillment of the terms hereof do not conflict with,
      result in the breach of any of

                                      -7-
<PAGE>
      the terms and provisions of, nor constitute (with or without notice or
      lapse of time) a default under, the certificate of incorporation or bylaws
      of the Depositor, or any indenture, agreement or other instrument to which
      the Depositor is a party or by which it is bound; nor result in the
      creation or imposition of any Lien upon any of the properties of the
      Depositor pursuant to the terms of any such indenture, agreement or other
      instrument (other than pursuant to the Basic Documents); nor violate any
      law or any order, rule or regulation applicable to the Depositor of any
      court or of any federal or state regulatory body, administrative agency or
      other governmental instrumentality having jurisdiction over the Depositor
      or its properties.

            (v) There are no proceedings or investigations pending, or to the
      Depositor's best knowledge threatened, before any court, regulatory body,
      administrative agency or other governmental instrumentality having
      jurisdiction over the Depositor or its properties: (A) asserting the
      invalidity of this Agreement, any of the other Basic Documents or the
      Residual Interest Instruments, (B) seeking to prevent the issuance of the
      Residual Interest Instruments or the consummation of any of the
      transactions contemplated by this Agreement or any of the other Basic
      Documents, (C) seeking any determination or ruling that might materially
      and adversely affect the performance by the Depositor of its obligations
      under, or the validity or enforceability of, this Agreement, any of the
      other Basic Documents or the Residual Interest Instruments or (D)
      involving the Depositor and which might materially and adversely affect
      the federal income tax or other federal, state or local tax attributes of
      the Residual Interest Instruments.

            Section 2.10 Federal Income Tax Allocations.

      (a) Net income of the Trust for any month, as determined for federal
income tax purposes (and each item of income, gain, loss and deduction entering
into the computation thereof), shall be allocated among the Owners in proportion
to the Percentage Interest of the Residual Interest of each Owner.

      (b) Net losses of the Trust, if any, for any calendar month as determined
for federal income tax purposes (and each item of income, gain, loss and
deduction entering into the computation thereof) shall be allocated to the
Owners. Any indebtedness allocated pursuant to Treasury Regulation
Section1.752-3(a)(3) shall be allocated to the Residual Interest. The Depositor
is authorized to modify the allocations in this paragraph if necessary or
appropriate, in its sole discretion, for the allocations to fairly reflect the
income, gain, loss and deduction to the Depositor or to the Owners, or as
otherwise required by the Code.

      Section 2.11 Separateness Covenants. So long as the Notes are outstanding,
the Trust shall and the Administrator, on behalf of the Owner Trustee, shall
cause the Trust to (i) maintain books and records and bank accounts separate
from those of any other Person; (ii) maintain its assets in such a manner that
it is not costly or difficult to segregate, identify, or ascertain such assets;
(iii) observe all trust procedures required by this Trust Agreement and under
Delaware Law; (iv) hold itself out to creditors and the public as a legal entity
separate and distinct from any other Person; (v) prepare separate tax returns
and financial statements, or if part of a consolidated group, then the Trust
will be shown as a separate member of such group; (vi) allocate and charge
fairly and reasonably any overhead shared with Affiliates; (vii) transact all

                                      -8-
<PAGE>
business with Affiliates on an arm's-length basis and pursuant to enforceable
agreements; (viii) conduct business in its own name, and use separate
stationery, invoices, and checks separate from that of the Depositor or any
Affiliate; (ix) not commingle its assets or funds with those of any other
Person; and (x) not assume, guarantee, or pay the debts or obligations of any
other Person.

                                  ARTICLE III

             RESIDUAL INTEREST INSTRUMENTS AND TRANSFER OF INTERESTS

      Section 3.01 Initial Ownership. Upon the formation of the Trust by the
contribution by the Depositor pursuant to Section 2.05 and until the issuance of
the Residual Interest Instruments, the Depositor shall be the sole beneficiary
of the Trust.

      Section 3.02 The Residual Interest Instruments and the Notes.

      (a) The Residual Interest Instruments shall not be issued with a principal
amount. The Residual Interest Instruments shall be executed by the Owner Trustee
on behalf of the Trust by manual or facsimile signature of an authorized officer
of the Owner Trustee, and authenticated by the Trust Agent by the manual or
facsimile signature of an authorized officer of the Trust Agent and shall be
deemed to have been validly issued when so executed and authenticated. Residual
Interest Instruments bearing the manual or facsimile signatures of individuals
who were, at the time when such signatures were affixed, authorized to sign on
behalf of the Owner Trustee or the Trust Agent shall be validly issued by the
Trust, notwithstanding that such individuals or any of them have ceased to be so
authorized prior to the execution, authentication and delivery of such Residual
Interest Instruments or did not hold such offices at the date of such Residual
Interest Instruments. All Residual Interest Instruments shall be dated the date
of their authentication.

      (b) The Notes shall be executed by the Owner Trustee on behalf of the
Trust by manual or facsimile signature of an authorized officer of the Owner
Trustee, and shall be authenticated as provided in the Indenture. Notes bearing
the manual or facsimile signature of an individual who was, at the time when
such signature was affixed, authorized to sign on behalf of the Owner Trustee
shall be deemed to have been validly executed by the Trust, notwithstanding that
such individual has ceased to be so authorized prior to the execution and
delivery of such Notes or did not hold such office at the date of such Notes.

      Section 3.03 Execution, Authentication and Delivery of Residual Interest
Instruments and Notes

      (a) The Owner Trustee shall cause to be executed, authenticated and
delivered upon the order of the Depositor, in exchange for the Contracts and the
other assets of the Trust, simultaneously with the sale, assignment and transfer
to the Trust of the Contracts, and such other assets, (a) the Residual Interest
Instruments representing 100% of the Percentage Interests of the Residual
Interest, evidencing the entire ownership of the Trust, and (b) Notes executed
by the Trust in aggregate principal amount of, in the case of the (i) Class A-1
Notes, $74,800,000, (ii) Class A-2 Notes, $99,000,000, (iii) Class A-3 Notes,
$122,000,000, and (iv) Class A-4

                                      -9-
<PAGE>
Notes, $104,200,000. The Owner Trustee is hereby authorized to direct, on behalf
of the Trust, the Indenture Trustee to authenticate and deliver the Notes upon
the order of the Depositor. No Residual Interest Instrument shall entitle its
Owner to any benefit under this Agreement, or be valid for any purpose, unless
there appears on such Residual Interest Instrument a certificate of
authentication substantially in the form set forth in the form of Residual
Interest Instrument attached hereto as Exhibit B, executed by the Trust Agent or
another authenticating agent of the Owner Trustee, by manual or facsimile
signature, and such certificate upon any Residual Interest Instrument shall be
conclusive evidence, and the only evidence, that such Residual Interest
Instrument has been duly authenticated and delivered hereunder. Upon issuance,
authorization and delivery pursuant to the terms hereof, the Residual Interest
Instruments will be entitled to the benefits of this Agreement.

      Section 3.04 Registration of Transfer and Exchange of Residual Interest
Instruments

      (a) The Certificate Registrar shall keep or cause to be kept, a
Certificate Register, subject to such reasonable regulations as it may
prescribe. The Certificate Register shall provide for the registration of
Residual Interest Instruments and transfers and exchanges of Residual Interest
Instruments as provided herein. The Trust Agent, as agent for the Trust, is
hereby initially appointed Certificate Registrar for the purpose of registering
Residual Interest Instruments and transfers and exchanges of Residual Interest
Instruments as herein provided. In the event that, subsequent to the Closing
Date, the Trust Agent notifies the Administrator that the Trust Agent is unable
to act as Certificate Registrar, the Administrator shall appoint another bank or
trust company, having an office or agency located in The City of New York,
agreeing to act in accordance with the provisions of this Agreement applicable
to it, and otherwise acceptable to the Depositor, to act as successor
Certificate Registrar hereunder.

      (b) Upon surrender for registration of transfer of any Residual Interest
Instrument at the office of the Certificate Registrar, the Owner Trustee shall
execute, authenticate and deliver (or shall cause the Trust Agent, as its
authenticating agent, to authenticate and deliver), in the name of the
designated transferee or transferees, one or more new Residual Interest
Instruments in authorized denominations of a like Percentage Interest.

      (c) At the option of an Owner of a Residual Interest Instrument, Residual
Interest Instruments may be exchanged for other Residual Interest Instruments in
authorized denominations of a like Percentage Interest, upon surrender of the
Residual Interest Instruments to be exchanged at the office of the Certificate
Registrar. Whenever any Residual Interest Instruments are so surrendered for
exchange, the Owner Trustee on behalf of the Trust shall execute, authenticate
and deliver (or shall cause the Trust Agent, as its authenticating agent, to
authenticate and deliver) the Residual Interest Instruments that the Owner
making the exchange is entitled to receive. Every Residual Interest Instrument
presented or surrendered for registration of transfer or exchange shall be
accompanied by a written instrument of transfer in form satisfactory to the
Trust Agent and the Certificate Registrar duly executed by the Owner thereof or
his attorney duly authorized in writing.

      (d) No service charge shall be made for any registration of transfer or
exchange of Residual Interest Instruments, but the Owner Trustee or, on its
behalf, the Trust Agent, may

                                      -10-
<PAGE>
require payment of a sum sufficient to cover any tax or governmental charge that
may be imposed in connection with any transfer or exchange of Residual Interest
Instruments.

      (e) All Residual Interest Instruments surrendered for registration of
transfer or exchange, if surrendered to any agent of the Owner Trustee under
this Agreement, shall be delivered to the Trust Agent and promptly canceled by
it, or, if surrendered to the Trust Agent, shall be promptly canceled by it, and
no Residual Interest Instruments shall be issued in lieu thereof except as
expressly permitted by any of the provisions of this Agreement. The Trust Agent
shall dispose of canceled Residual Interest Instruments in accordance with the
normal industry practice.

      Section 3.05 Mutilated, Destroyed, Lost or Stolen Residual Interest
Instruments. If (a) the Certificate Registrar receives evidence to its
satisfaction of the destruction, loss or theft of any Residual Interest
Instrument and the Certificate Registrar and the Trust Agent receive such
security or indemnity as may be required by them to hold the Certificate
Registrar and the Trust Agent harmless, or (b) any mutilated Residual Interest
Instrument is surrendered to the Certificate Registrar, then, in the absence of
notice to the Certificate Registrar or the Trust Agent that such Residual
Interest Instrument has been acquired by a Protected Purchaser and the
requirements of Section 8-406 of the UCC are met, and subject to Section 8-405
of the UCC, the Owner Trustee on behalf of the Trust shall execute and the Trust
Agent, as its authenticating agent, shall authenticate and deliver, in exchange
for or in lieu of any such mutilated, destroyed, lost or stolen Residual
Interest Instrument, a new Residual Interest Instrument of like tenor and
Percentage Interest. In connection with the issuance of any new Residual
Interest Instrument under this Section, the Owner Trustee or, on its behalf, the
Trust Agent, may require the payment by the Owner of a sum sufficient to cover
any tax or other governmental charge that may be imposed in relation thereto.
Any duplicate Residual Interest Instrument issued pursuant to this Section shall
constitute complete and indefeasible evidence of ownership in the Trust, as if
originally issued, whether or not the lost, stolen or destroyed Residual
Interest Instrument shall be found at any time.

      Section 3.06 Persons Deemed Owners. Prior to due presentation of a
Residual Interest Instrument for registration of transfer, the Owner Trustee,
the Trust Agent, the Certificate Registrar, any Paying Agent and any of their
respective agents may treat the Person in whose name any Residual Interest
Instrument is registered as the owner of such Residual Interest Instrument for
the purpose of receiving distributions pursuant to Section 5.02 and for all
other purposes whatsoever, and none of the Owner Trustee, the Trust Agent, the
Certificate Registrar, any Paying Agent or any of their respective agents shall
be affected by any notice to the contrary.

      Section 3.07 Access to List of Owners' Names and Addresses. The Trust
Agent shall furnish or cause to be furnished to the Servicer, the Insurer and
the Depositor, within 15 days after receipt by the Trust Agent of a written
request therefor from the Servicer, the Insurer or the Depositor, a list, in
such form as the Servicer, the Insurer or the Depositor may reasonably require,
of the names and addresses of the Owners as of the most recent Record Date. Each
Owner, by receiving and holding a Residual Interest Instrument, agrees with the
Servicer, the Depositor, the Owner Trustee and the Trust Agent that none of the
Servicer, the Depositor, the Owner Trustee or the Trust Agent shall be held
accountable by reason of the disclosure of any

                                      -11-
<PAGE>
such information as to its name and address hereunder, regardless of the source
from which such information was derived.

      Section 3.08 Maintenance of Office or Agency. The Trust Agent shall
maintain in the City of New York an office or offices or agency or agencies
where Residual Interest Instruments may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Trust Agent in
respect of the Residual Interest Instruments and the Basic Documents may be
served. The Trust Agent hereby designates the office of Citibank, N.A. at the
address provided under the definition of the term "TRUST AGENT OFFICE" as its
office for such purposes. The Trust Agent shall give prompt written notice to
the Owner Trustee, the Depositor, the Servicer and to the Owners of any change
in the location of the Certificate Register or any such office or agency.

      Section 3.09 Temporary Residual Interest Instruments. Pending the
preparation of definitive Residual Interest Instruments, the Owner Trustee, on
behalf of the Trust, may execute, authenticate and deliver, temporary Residual
Interest Instruments that are printed, lithographed, typewritten, mimeographed
or otherwise produced, in any authorized denomination, substantially of the
tenor of the definitive Residual Interest Instruments in lieu of which they are
issued. If temporary Residual Interest Instruments are issued, the Depositor
will cause definitive Residual Interest Instruments to be prepared without
unreasonable delay. After the preparation of definitive Residual Interest
Instruments, the temporary Residual Interest Instruments shall be exchangeable
for definitive Residual Interest Instruments upon surrender of the temporary
Residual Interest Instruments at the office or agency to be maintained as
provided in Section 3.08, without charge to the Owner. Upon surrender for
cancellation of any one or more temporary Residual Interest Instruments, the
Owner Trustee shall execute, authenticate and deliver (or shall cause the Trust
Agent, as its authenticating agent, to authenticate and deliver) in exchange
therefor a like Percentage Interest of definitive Residual Interest Instruments
in authorized denominations. Until so exchanged, the temporary Residual Interest
Instruments shall in all respects be entitled to the same benefits hereunder as
definitive Residual Interest Instruments.

      Section 3.10 Appointment of Paying Agent. The Owner Trustee, on behalf of
the Trust, hereby appoints the Trust Agent as Paying Agent under this Agreement.
The Paying Agent shall make distributions to Owners from the Residual
Distribution Account pursuant to Section 5.02 hereof and shall report the
amounts of such distributions to the Owner Trustee. The Paying Agent shall have
the revocable power to withdraw funds from the Residual Distribution Account for
the purpose of making the distributions referred to above. The Owner Trustee on
behalf of the Trust may revoke such power and remove the Paying Agent if the
Owner Trustee is directed in writing to do so by the Administrator. Each Paying
Agent shall be permitted to resign as Paying Agent upon 30 days' written notice
to the Trust. In the event that the Trust Agent shall no longer be the Paying
Agent, the Administrator shall appoint a successor to act as Paying Agent (which
shall be a bank or trust company acceptable to the Insurer). The Administrator
shall cause such successor Paying Agent or any additional Paying Agent appointed
by the Administrator to execute and deliver to the Trust an instrument in which
such successor Paying Agent or additional Paying Agent shall agree with the
Trust that, as Paying Agent, such successor Paying Agent or additional Paying
Agent will hold all sums, if any, held by it for payment to the Owners in trust
for the benefit of the Owners entitled thereto until such sums

                                      -12-
<PAGE>
shall be paid to the Owners. The Paying Agent shall return all unclaimed funds
to the Trust and upon removal of a Paying Agent such Paying Agent shall also
return all funds in its possession to the Trust. The provisions of Sections
7.01, 7.03, 7.04, 8.01 and 8.02 shall apply to the Trust Agent also in its role
as Paying Agent, for so long as the Trust Agent shall act as Paying Agent and,
to the extent applicable, to any other paying agent appointed hereunder. Any
reference in this Agreement to the Paying Agent shall include any co-paying
agent unless the context requires otherwise. Notwithstanding anything herein to
the contrary, the Trust Agent and the Paying Agent shall be the same entity as
the Indenture Trustee under the Indenture and the Sale and Servicing Agreement,
unless an Insurer Default has occurred and is continuing.

      Section 3.11 Restrictions on Transfer of Residual Interest Instruments.

      (a) Each prospective purchaser and any subsequent transferee of a Residual
Interest Instrument (each, a "PROSPECTIVE OWNER"), other than the Depositor, by
virtue of its acceptance thereof, shall be deemed to have represented and
warranted to the Owner Trustee, the Trust Agent and the Certificate Registrar
and any of their respective successors that:

               (i) Such Person is (A) a "QUALIFIED INSTITUTIONAL BUYER" as
      defined in Rule 144A under the Securities Act of 1933, as amended (the
      "SECURITIES ACT"), is aware that the seller of the Residual Interest
      Instrument may be relying on the exemption from the registration
      requirements of the Securities Act provided by Rule 144A and is acquiring
      such Residual Interest Instrument for its own account or for the account
      of one or more qualified institutional buyers for whom it is authorized to
      act, or (B) a Person involved in the organization or operation of the
      Trust or an affiliate of such Person within the meaning of Rule 3a-7 of
      the Investment Company Act of 1940, as amended (including, but not limited
      to, the Depositor and Onyx Acceptance Corporation).

               (ii) Such Person understands that the Residual Interest
      Instruments have not been and will not be registered under the Securities
      Act and may be offered, sold, pledged or otherwise transferred only to a
      person whom the seller reasonably believes is (A) a qualified
      institutional buyer (as such term is defined in Rule 144A under the
      Securities Act) or (B) a Person involved in the organization or operation
      of the Trust or an affiliate of such Person, in a transaction meeting the
      requirements of Rule 144A under the Securities Act and in accordance with
      any applicable securities laws of any state of the United States.

               (iii) Such Person understands that the Residual Interest
      Instrument shall bear a legend on the face thereof substantially in the
      form set forth in the form of Residual Interest Instrument attached hereto
      as Exhibit B.

               (iv) Such Person shall comply with the provisions of Section
      3.11(b), as applicable, relating to the ERISA restrictions with respect to
      the acceptance or acquisition of such Residual Interest Instrument.

               (v) Such Person is and shall remain a United States Person and
      will not transfer the Residual Interest Instrument to a Person who is not
      a United States Person,

                                      -13-
<PAGE>
      other than pursuant to a repurchase agreement (which is treated as a loan
      for income tax purposes) or solely to evidence a security interest.

      (b) The Residual Interest Instruments may not be acquired by or for the
account of (i) an employee benefit plan (as defined in Section 3(3) of the
Employee Retirement Income Security Act of 1974, as amended ("ERISA")) that is
subject to the provisions of Title I of ERISA, (ii) a plan described in Section
4975(e)(1) of the Internal Revenue Code of 1986, as amended, or (iii) any
entity, including an insurance company separate account or general account,
whose underlying assets include plan assets by reason of a plan's investment in
the entity (each, a "BENEFIT PLAN"). By accepting and holding a Residual
Interest Instrument, the Owner shall be deemed to have represented and warranted
that it is not a Benefit Plan.

                                   ARTICLE IV

                            ACTIONS BY OWNER TRUSTEE

      Section 4.01 Prior Notice to Owners with Respect to Certain Matters.
Subject to the provisions and limitations of Section 4.04 and Section 4.06, with
respect to the following matters, neither the Owner Trustee nor the Trust Agent
shall take any action unless at least 30 days before the taking of such action,
the Owner Trustee or the Trust Agent, as applicable, shall have notified the
Owners in writing of the proposed action and the Owners shall not have notified
the Owner Trustee or the Trust Agent, as applicable, in writing prior to the
30th day after such notice is given that such Owners have withheld consent or
provided alternative direction:

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

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

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

      (d) the amendment, change or modification of the Administration Agreement,
except to cure any ambiguity or to amend or supplement any provision in a manner
or add any provision that would not materially adversely affect the interests of
the Owners; or

      (e) the appointment pursuant to the Indenture of a successor Note
Registrar, paying agent for the Notes or Indenture Trustee or pursuant to this
Agreement of a successor Certificate Registrar or the Paying Agent, or the
consent to the assignment by the Note Registrar, paying agent for the Notes,
Indenture Trustee, Certificate Registrar or Paying Agent of its obligations
under the Indenture or this Agreement, as applicable.

                                      -14-
<PAGE>
      Section 4.02 Action by Owners with Respect to Certain Matters. Subject to
the provisions and limitations of Section 4.04 and Section 4.06, neither the
Owner Trustee nor the Trust Agent shall have the power, except upon the
direction of the Owners and with the prior written consent of the Insurer (so
long as no Insurer Default shall have occurred and be continuing), to (a) remove
the Administrator pursuant to Section 8 of the Administration Agreement, (b)
appoint a successor Administrator pursuant to Section 8 of the Administration
Agreement, (c) remove the Servicer pursuant to Section 7.01 of the Sale and
Servicing Agreement, (d) except as expressly provided in the Basic Documents,
sell the Contracts after the termination of the Indenture, (e) initiate any
claim, suit or proceeding by the Trust or compromise any claim, suit or
proceeding brought by or against the Trust, (f) authorize the merger or
consolidation of the Trust with or into any other statutory trust or entity
(other than in accordance with Section 3.10 of the Indenture) or (g) amend the
Certificate of Trust (unless such amendment is required to be filed under the
Statutory Trust Statute). The Owner Trustee and the Trust Agent may only take
the actions referred to in the preceding sentence upon written instructions
signed by the Owners and, to the extent required by the preceding sentence, with
the prior written consent of the Insurer.

      Section 4.03 Action by Owners with Respect to Bankruptcy. Neither the
Owner Trustee nor the Trust Agent shall have the power to commence a voluntary
proceeding in bankruptcy relating to the Trust without the prior written consent
of the Insurer and the unanimous prior approval of all Owners and the delivery
to the Owner Trustee or the Trust Agent, as applicable, by each such Owner of a
certificate certifying that such Owner reasonably believes that the Trust is
insolvent.

      Section 4.04 Restrictions on Owners' Power. The Owners shall not direct
the Owner Trustee or the Trust Agent to take or to refrain from taking any
action if such action or inaction would be contrary to any obligation of the
Trust, or of the Owner Trustee or the Trust Agent, as applicable, under this
Agreement or any of the other Basic Documents or would be contrary to the
purpose of this Trust as set forth in Section 2.03, nor shall the Owner Trustee
or the Trust Agent be obligated to follow any such direction, if given.

      Section 4.05 Majority Control. Except as expressly provided herein, any
action that may be taken by the Owners under this Agreement may be taken by
Owners evidencing more than 50% of the Percentage Interest in the Residual
Interest. Except as expressly provided herein, any written notice of the Owners
delivered pursuant to this Agreement shall be effective if signed by Owners
evidencing more than 50% of the Percentage Interest in the Residual Interest at
the time of the delivery of such notice.

      Section 4.06 Certain Litigation Matters.

      (a) The Trust Agent, the Indenture Trustee or the Owner Trustee shall
provide prompt written notice to the Insurer of any action, proceeding or
investigation of which a Responsible Officer of the Trust Agent, the Indenture
Trustee or the Owner Trustee, as applicable, has actual knowledge that could
adversely affect the Trust or the Trust Estate or the rights or obligations of
the Insurer under the Basic Documents or any other document delivered with
respect thereto.

                                      -15-
<PAGE>
      (b) The Trust Agent, the Indenture Trustee and Owner Trustee shall, upon
written notice from the Insurer, allow the Insurer to institute, assume or
control the defense of any action, proceeding or investigation that could
adversely affect the Trust or the Trust Estate or the rights or obligations of
the Insurer under any of the Basic Documents or any other document delivered
with respect thereto.

      (c) None of the Trust Agent, the Indenture Trustee or the Owner Trustee
shall, without the Insurer's prior written consent or unless directed by the
Insurer, undertake or join any litigation or agree to any settlement of any
action, proceeding or investigation that could adversely affect the Trust or the
rights or obligations of the Insurer under any of the Basic Documents or any
other document delivered with respect thereto.

                                   ARTICLE V

                   APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

      Section 5.01 Establishment of the Residual Distribution Account. The Trust
Agent shall, for the benefit of the Owners, establish and maintain an account
denominated "Residual Distribution Account OT 2003-B, Citibank, N.A., Trust
Agent," which account shall be an Eligible Account (the "Residual Distribution
Account"). Funds shall be deposited in the Residual Distribution Account as
provided in Section 4.04(b) of the Sale and Servicing Agreement.

      All of the right, title and interest of the Trust Agent in all funds on
deposit from time to time in the Residual Distribution Account and in all
proceeds thereof shall be held for the benefit of the Owners and such other
persons entitled to distributions therefrom. Except as otherwise expressly
provided herein, the Residual Distribution Account shall be under the sole
dominion and control of the Trust Agent, as agent of the Owner Trustee, for the
benefit of the Owners. The funds on deposit in the Residual Distribution Account
shall remain uninvested.

                        Section 5.02 Application of Trust Funds.

      (a) On each Distribution Date, the Trust Agent, on behalf of the Owner
Trustee, shall direct the Paying Agent to distribute all amounts on deposit in
the Residual Distribution Account first, to the Administrator in payment of any
compensation due under the Administration Agreement and then, the balance, to
the Owners, pro rata.

      (b) On each Distribution Date, the Trust Agent, on behalf of the Owner
Trustee, shall cause the Paying Agent to send to each Owner the statement or
statements provided to the Owner Trustee or the Trust Agent by the Servicer
pursuant to Section 4.05 of the Sale and Servicing Agreement with respect to
such Distribution Date.

      (c) In the event that any withholding tax is imposed on the Trust's
payment (or allocations of income) to an Owner, such tax shall reduce the amount
otherwise distributable to the Owner in accordance with this Section. The Trust
Agent is hereby authorized and directed to retain from amounts otherwise
distributable to the Owners sufficient funds for the payment of any tax that is
legally owed by the Trust (but such authorization shall not prevent the Owner

                                      -16-
<PAGE>
Trustee or the Trust Agent from contesting any such tax in appropriate
proceedings, and withholding payment of such tax, if permitted by law, pending
the outcome of such proceedings). The amount of any withholding tax imposed with
respect to an Owner shall be treated as cash distributed to such Owner at the
time it is withheld by the Trust and remitted to the appropriate taxing
authority. If the Trust Agent receives written notice there is a possibility
that withholding tax is payable with respect to a distribution, the Trust Agent
shall withhold such amounts in accordance with this paragraph (c).

      Section 5.03 Method of Payment. Subject to Section 9.01(c) respecting the
final payment upon retirement of each Residual Interest Instrument,
distributions required to be made to each Owner of record on the related Record
Date shall be made by check mailed to such Owner at the address of such Owner
appearing in the Certificate Register (or if requested by the Owner, by wire
transfer of immediately available funds or pursuant to other arrangements), the
amount to be distributed to such Owner pursuant to such Owner's Residual
Interest Instruments.

      Section 5.04 No Segregation of Monies; No Interest. Subject to Sections
5.01 and 5.02, monies received by the Trust Agent hereunder need not be
segregated in any manner except to the extent required by law and may be
deposited under such general conditions as may be prescribed by law, and the
Trust Agent shall not be liable for any interest thereon.

      Section 5.05 Accounting and Reports to the Owners, the Internal Revenue
Service and Others. The Trust Agent shall (a) maintain (or cause to be
maintained) the books of the Trust on a calendar year basis and the accrual
method of accounting, (b) deliver to each Owner, as may be required by the Code
and applicable Treasury Regulations, such information as may be required
(including Schedule K-1, if applicable) to enable each Owner to prepare its
federal and state income tax returns, (c) file such tax returns relating to the
Trust (including a partnership information return, IRS Form 1065, if applicable)
and make such elections as from time to time may be required or appropriate
under any applicable state or federal statute or any rule or regulation
thereunder so as to maintain the Trust's characterization as a partnership, if
applicable, for federal income tax purposes, (d) cause such tax returns to be
signed in the manner required by law and (e) collect or cause to be collected
any withholding tax as described in and in accordance with Section 5.02(c) with
respect to income or distributions to Owners. Unless otherwise required by
applicable law, the Trust Agent shall elect under Section 1278 of the Code to
include in current income any market discount that accrues with respect to the
Contracts. The Trust Agent shall not make the election provided under Section
754 of the Code.

      Section 5.06 Signature on Returns; Tax Matters Partner

      (a) The Owner Trustee shall sign on behalf of the Trust the tax returns,
if any, of the Trust, unless applicable law requires an Owner to sign such
documents, in which case such documents shall be signed by the Depositor, as
long as the Depositor holds a Residual Interest Instrument, and otherwise the
holder of the largest Percentage Interest in the Residual Interest Instruments
shall sign such documents.

      (b) If a "tax matters partner" is required pursuant to Section
6231(a)(7)(A) of the Code, the Depositor shall be designated the "tax matters
partner" of the Trust pursuant to Section 6231(a)(7)(A) of the Code and
applicable Treasury Regulations, as long as the Depositor holds a

                                      -17-
<PAGE>
Residual Interest Instrument, and otherwise the Owner of the largest Percentage
Interest in the Residual Interest Instruments shall be the "tax matters
partner".

                                   ARTICLE VI

              AUTHORITY AND DUTIES OF OWNER TRUSTEE AND TRUST AGENT

      Section 6.01 General Authority. Subject to the provisions and limitations
of Sections 2.03 and 2.06, the Owner Trustee is authorized and directed to
execute and deliver on behalf of the Trust the Basic Documents to which the
Trust is to be a party and each certificate or other document attached as an
exhibit to or contemplated by the Basic Documents to which the Trust is to be a
party and any amendment or other agreement, as evidenced conclusively by the
Owner Trustee's execution thereof. In addition to the foregoing, the Owner
Trustee is authorized, but shall not be obligated, to take all actions required
of the Trust pursuant to the Basic Documents. The Owner Trustee is further
authorized from time to time to take such action as the Administrator or the
Owners recommend with respect to the Basic Documents.

      Section 6.02 General Duties. Subject to the provisions and limitations of
Sections 2.03 and 2.06:

      (a) it shall be the duty of the Owner Trustee to discharge (or cause to be
discharged through the Administrator or such agents as shall be appointed with
the consent of the Insurer) all of its responsibilities pursuant to the terms of
this Agreement and the other Basic Documents to which the Trust is a party and
to administer the Trust in the interest of the Owners, subject to the Basic
Documents and in accordance with the provisions of this Agreement.
Notwithstanding the foregoing, the Owner Trustee shall be deemed to have
discharged its duties and responsibilities hereunder and under the other Basic
Documents to the extent the Administrator or the Trust Agent has agreed in the
Administration Agreement or this Agreement, respectively, to perform any act or
to discharge any duty of the Owner Trustee or the Trust hereunder or under any
Basic Document, and the Owner Trustee shall not be held liable for the default
or failure of the Administrator or the Trust Agent to carry out its obligations
under the Administration Agreement or this Agreement, respectively; and

      (b) it shall be the duty of the Trust Agent to discharge all of its
responsibilities pursuant to the terms of this Agreement and the other Basic
Documents to which the Trust and the Trust Agent are a party and to administer
the Trust in the interest of the Owners, subject to the Basic Documents and in
accordance with the provisions of this Agreement.

      Section 6.03 Action Upon Instruction.

      (a) Subject to Article IV and Section 7.01(g) of this Agreement, in
accordance with the terms of the Basic Documents, the Owners may by written
instruction direct the Owner Trustee or the Trust Agent in the management of the
Trust. Such direction may be exercised at any time by written instruction of the
Owners pursuant to Article IV.

      (b) Neither the Owner Trustee nor the Trust Agent shall be required to
take any action hereunder or under any other Basic Document if the Owner Trustee
or the Trust Agent, as

                                      -18-
<PAGE>
applicable, shall have reasonably determined, or shall have been advised by
counsel, that such action is likely to result in liability on the part of the
Owner Trustee or the Trust Agent, as applicable, or is contrary to the terms
hereof or of any other Basic Document or is otherwise contrary to law.

      (c) Whenever the Owner Trustee or the Trust Agent is unable to decide
between alternative courses of action permitted or required by the terms of this
Agreement or under any other Basic Document, the Owner Trustee or the Trust
Agent, as applicable, shall promptly give notice (in such form as shall be
appropriate under the circumstances) to the Owners and the Insurer requesting
instruction as to the course of action to be adopted, and to the extent the
Owner Trustee or the Trust Agent, as applicable, acts in good faith in
accordance with any written instruction from the Owners received, the Owner
Trustee or the Trust Agent, as applicable, shall not be liable on account of
such action to any Person. If the Owner Trustee or the Trust Agent shall not
have received appropriate instruction within ten days of such notice (or within
such shorter period of time as reasonably may be specified in such notice or may
be necessary under the circumstances) it may, but shall be under no duty to,
take or refrain from taking such action not inconsistent with this Agreement and
the other Basic Documents, as it shall deem to be in the best interests of the
Owners, and shall have no liability to any Person for such action or inaction.

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

      Section 6.04 No Duties Except as Specified in this Agreement or in
Instructions. Neither the Owner Trustee nor the Trust Agent shall have any duty
or obligation to manage, make any payment with respect to, register, record,
sell, dispose of or otherwise deal with the Trust Estate, or to otherwise take
or refrain from taking any action under, or in connection with, any document
contemplated hereby to which the Owner Trustee or the Trust Agent, as
applicable, is a party, except as expressly provided by the terms of this
Agreement or in any document or written instruction received by the Owner
Trustee or the Trust Agent, as applicable, pursuant to Section 6.01 or 6.03; and
no implied duties or obligations shall be read into this Agreement or any other
Basic Document against the Owner Trustee or the Trust Agent. Neither the Owner
Trustee nor the Trust Agent shall have any responsibility for filing any
financing or

                                      -19-
<PAGE>
continuation statement in any public office at any time or to otherwise perfect
or maintain the perfection of any security interest or lien granted to it
hereunder or to prepare or file with the Commission any filing for the Trust or
to record this Agreement or any other Basic Document. Each of the Owner Trustee
and the Trust Agent nevertheless agrees that it will, at its own cost and
expense, promptly take all action as may be necessary to discharge any liens on
any part of the Trust Estate that result from actions by, or claims against, the
Owner Trustee or the Trust Agent, as applicable, that are not related to the
ownership or the administration of the Trust Estate or the Grant of any portion
thereof to the Indenture Trustee pursuant to the Indenture.

      Section 6.05 No Action Except Under Specified Documents or Instructions.
Neither the Owner Trustee nor the Trust Agent shall manage, control, use, sell,
dispose of or otherwise deal with any part of the Trust Estate except in
accordance with (i) the powers granted to and the authority conferred upon the
Owner Trustee or the Trust Agent, as applicable, pursuant to this Agreement,
(ii) the other Basic Documents and (iii) any document or instruction delivered
to the Owner Trustee or the Trust Agent, as applicable, pursuant to Section
6.03.

      Section 6.06 Restrictions. Neither the Owner Trustee nor the Trust Agent
shall take any action (i) that is inconsistent with the purposes of the Trust
set forth in Section 2.03 or (ii) that, to the actual knowledge of a Responsible
Officer of the Owner Trustee or the Trust Agent, as applicable, would result in
the Trust's becoming taxable as a corporation for federal or state income tax
purposes. The Owners shall not direct the Owner Trustee or the Trust Agent to
take action that would violate the provisions of this Section.

                                  ARTICLE VII

                CONCERNING THE OWNER TRUSTEE AND THE TRUST AGENT

      Section 7.01 Acceptance of Trusts and Duties. The Owner Trustee accepts
the trusts hereby created and agrees to perform its duties hereunder with
respect to such trusts but only upon the terms of this Agreement and the other
Basic Documents. The Trust Agent agrees to perform its duties hereunder upon the
terms of this Agreement and the other Basic Documents. Neither the Owner Trustee
nor the Trust Agent shall be liable except for the performance of such duties
and obligations as are specifically set forth in this Agreement, no implied
covenants or obligations shall be read into this Agreement against the Owner
Trustee or the Trust Agent and, in the absence of bad faith on the part of the
Owner Trustee or the Trust Agent, as applicable, the Owner Trustee and the Trust
Agent may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon any certificates or opinions
furnished to the Owner Trustee or the Trust Agent and conforming to the
requirements of this Agreement. Each of the Owner Trustee and the Trust Agent
agrees to disburse all monies actually received by it constituting part of the
Trust Estate upon the terms of this Agreement and the other Basic Documents.
Neither the Owner Trustee nor the Trust Agent shall be answerable or accountable
hereunder or under any other Basic Document under any circumstances, except (i)
for its own willful misconduct or negligence or (ii) in the case of the
inaccuracy of any representation or warranty contained in Section 7.03 expressly
made by the Owner Trustee or the Trust Agent, as the case may be. In particular,
but not by way of limitation (and subject to the exceptions set forth in the
preceding sentence):

                                      -20-
<PAGE>
      (a) neither the Owner Trustee nor the Trust Agent shall be liable for any
error of judgment made by a Responsible Officer of the Owner Trustee or the
Trust Agent, respectively;

      (b) neither the Owner Trustee nor the Trust Agent shall be liable with
respect to any action taken or omitted to be taken by it in good faith in
accordance with this Agreement, the Basic Documents or the written direction of
the Administrator or any Owner;

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

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

      (e) neither the Owner Trustee nor the Trust Agent shall be responsible for
or in respect of the validity or sufficiency of this Agreement or for the due
execution hereof by the Depositor or for the form, character, genuineness,
sufficiency, value or validity of any of the Trust Estate, or for or in respect
of the validity or sufficiency of the Basic Documents, other than the
certificate of authentication on the Residual Interest Instruments, and neither
the Owner Trustee nor the Trust Agent shall assume or incur any liability, duty
or obligation to any Noteholder or to any Owner, other than as expressly
provided for herein or expressly agreed to in the other Basic Documents;

      (f) neither the Owner Trustee nor the Trust Agent shall be liable for the
default or misconduct of the Administrator, the Depositor, the Insurer, the
Indenture Trustee or the Servicer under any of the Basic Documents or otherwise
and neither the Owner Trustee nor the Trust Agent shall have any obligation or
liability to perform the obligations of the Trust under this Agreement or the
other Basic Documents that are required to be performed by the Administrator
under the Administration Agreement, the Indenture Trustee under the Indenture or
the Servicer or the Depositor under the Sale and Servicing Agreement;

      (g) neither the Owner Trustee nor the Trust Agent shall be under any
obligation to exercise any of the rights or powers vested in it by this
Agreement, or to institute, conduct or defend any litigation under this
Agreement or otherwise or in relation to this Agreement or any other Basic
Document, at the request, order or direction of the Owners, unless such Owners
have offered to the Owner Trustee or the Trust Agent, as applicable, security or
indemnity satisfactory to it against the costs, expenses and liabilities that
may be incurred by the Owner Trustee or the Trust Agent, as applicable, therein
or thereby; the right of the Owner Trustee and the Trust Agent to perform any
discretionary act enumerated in this Agreement or in any other Basic Document
shall not be construed as a duty, and neither the Owner Trustee nor the Trust
Agent shall be answerable for other than its negligence or willful misconduct in
the performance of any such act;

                                      -21-
<PAGE>
      (h) anything in this Agreement to the contrary notwithstanding, in no
event shall the Owner Trustee or Trust Agent be liable for special, indirect or
consequential loss or damage of any kind whatsoever (including but not limited
to lost profit), even if the Owner Trustee or Trust Agent has been advised of
the likelihood of such loss or damage and regardless of the form of action;

      (i) neither the Owner Trustee nor the Trust Agent shall be required to
take notice or be deemed to have notice or knowledge of any default, any Event
of Default or Servicer Default under any of the Basic Documents unless a
Responsible Officer of the Owner Trustee or the Trust Agent, respectively, shall
have received written notice thereof. In the absence of receipt of such notice,
the Owner Trustee and Trust Agent may conclusively assume that there is no
default, Event of Default or Servicer Default;

      (j) [RESERVED].

      (k) each of the Owner Trustee and the Trust Agent may rely and shall be
protected in acting or refraining from acting upon any resolution, opinion of
counsel, certificate of auditors or any other certificate, statement,
instrument, opinion, report, notice, request, consent, order, appraisal, bond or
other paper or document believed by it to be genuine and to have been signed or
presented by the proper party or parties;

      (l) each of the Owner Trustee and the Trust Agent may consult with counsel
and any advice or opinion of counsel shall be full and complete authorization
and protection in respect of any action taken or suffered or omitted by it
hereunder in good faith and in accordance with such advice or opinion of
counsel;

      (m) neither the Owner Trustee nor the Trust Agent shall be bound to make
any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent,
order, approval, bond or other paper or document, unless requested in writing to
do so by the Administrator or Owners; provided, however, that if the payment
within a reasonable time to the Owner Trustee or Trust Agent, as applicable, of
the costs, expenses or liabilities likely to be incurred by it in the making of
such investigation is, in the opinion of the Owner Trustee or Trust Agent, as
applicable, not reasonably assured to it by the security afforded to them by the
terms of this Agreement, the Owner Trustee or Trust Agent, as applicable, may
require reasonable indemnity against such cost, expense or liability as a
condition to taking any such action;

      (n) neither the Owner Trustee nor the Trust Agent shall be required to
give any bond or surety in respect of the execution of the Trust created hereby
or the powers granted hereunder; and

      (o) each of the Owner Trustee and Trust Agent may execute any of their
respective trusts or powers hereunder or perform any of their respective duties
hereunder either directly or by or through agents, attorneys or custodians, and
neither the Owner Trustee nor the Trust Agent shall be responsible for any
misconduct or negligence on the part of any such agent, attorney or custodian
appointed by the Owner Trustee or Trust Agent, as applicable, with due care.

                                      -22-
<PAGE>
      Section 7.02 Furnishing of Documents. The Owner Trustee shall furnish to
the Trust Agent duplicates or copies of all reports, notices, requests, demands,
certificates, financial statements and any other instruments furnished to the
Owner Trustee under the Basic Documents. The Trust Agent shall furnish to the
Owners promptly upon receipt of a written request therefor, duplicates or copies
of all reports, notices, requests, demands, certificates, financial statements
and any other instruments furnished to the Trust Agent under the Basic Documents
or furnished to the Trust Agent as provided in the preceding sentence.

      Section 7.03 Representations and Warranties.

      (a) The Owner Trustee hereby represents and warrants to the Depositor and
the Owners:

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

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

               (iii) Neither the execution nor the delivery by it of this
      Agreement, nor the consummation by it of the transactions contemplated
      hereby nor compliance by it with any of the terms or provisions hereof
      will contravene any federal or Delaware law, governmental rule or
      regulation governing the banking or trust powers of the Owner Trustee or
      any judgment or order binding on it, or constitute any default under its
      charter documents or bylaws or, to its actual knowledge, any indenture,
      mortgage, contract, agreement or instrument to which it is a party or by
      which any of its properties may be bound or result in the creation or
      imposition of any lien, charge or encumbrance on the Trust Estate
      resulting from actions by or claims against the Owner Trustee individually
      which are unrelated to this Agreement or the other Basic Documents.

      (b) The Trust Agent hereby represents and warrants to the Depositor and
the Owners:

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

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

               (iii) Neither the execution nor the delivery by it of this
      Agreement, nor the consummation by it of the transactions contemplated
      hereby nor compliance by it with any of the terms or provisions hereof
      will contravene any federal law, governmental rule or regulation governing
      the banking or trust powers of the Trust Agent or any judgment

                                      -23-
<PAGE>
      or order binding on it, or constitute any default under its charter
      documents or bylaws or any indenture, mortgage, contract, agreement or
      instrument to which it is a party or by which any of its properties may be
      bound or result in the creation or imposition of any lien, charge or
      encumbrance on the Trust Estate resulting from actions by or claims
      against the Trust Agent individually which are unrelated to this Agreement
      or the other Basic Documents.

      Section 7.04 Reliance; Advice of Counsel. Neither the Owner Trustee nor
the Trust Agent shall incur liability to anyone in acting upon any signature,
instrument, notice, resolution, request, consent, order, certificate, report,
opinion, bond or other document or paper believed by it to be genuine and
believed by it to be signed by the proper party or parties. The Owner Trustee
and the Trust Agent may accept a certified copy of a resolution of the board of
directors or other governing body of any corporate party as conclusive evidence
that such resolution has been duly adopted by such body and that the same is in
full force and effect. As to any fact or matter the method of determination of
which is not specifically prescribed herein, the Owner Trustee and the Trust
Agent may for all purposes hereof rely on a certificate, signed by the president
or any vice president or by the treasurer or other authorized officers of the
relevant party, as to such fact or matter and such certificate shall constitute
full protection to the Owner Trustee or the Trust Agent, as applicable, for any
action taken or omitted to be taken by it in good faith in reliance thereon.

      (b) In the exercise or administration of the trusts hereunder and in the
performance of its duties and obligations under this Agreement or the other
Basic Documents, the Owner Trustee and the Trust Agent each (i) may act directly
or through its agents or attorneys pursuant to agreements entered into with any
of them, and neither the Owner Trustee nor the Trust Agent shall be liable for
the conduct or misconduct of such agents or attorneys if such agents or
attorneys shall have been selected by the Owner Trustee or the Trust Agent with
reasonable care, and (ii) may consult with counsel, accountants and other
skilled persons to be selected with reasonable care and employed by it at the
sole expense of the Depositor. Neither the Owner Trustee nor the Trust Agent
shall be liable for anything done, suffered or omitted in good faith by it in
accordance with the written opinion or advice of any such counsel, accountants
or other such persons and not contrary to this Agreement or any other Basic
Document.

      Section 7.05 Not Acting in Individual Capacity. Except as otherwise
provided in this Article VII, in accepting the trusts hereby created, The Bank
of New York (Delaware) acts solely as Owner Trustee hereunder and not in its
individual capacity, and Citibank, N.A. acts solely as Trust Agent hereunder and
not in its individual capacity, and all Persons having any claim against the
Owner Trustee or the Trust Agent by reason of the transactions contemplated by
this Agreement or any other Basic Document shall look only to the Trust Estate
for payment or satisfaction thereof.

      Section 7.06 Owner Trustee and Trust Agent Not Liable for Residual
Interest Instruments, Notes or Contracts. The recitals contained herein and in
the Residual Interest Instruments (other than the respective signatures of the
Owner Trustee and the Trust Agent, and, in the case of the Trust Agent, the
certificate of authentication on the Residual Interest Instruments) shall be
taken as the statements of the Depositor, and neither the Owner Trustee nor the
Trust Agent assumes responsibility for the correctness thereof. Neither the
Owner Trustee

                                      -24-
<PAGE>
nor the Trust Agent makes any representations as to the validity or sufficiency
of this Agreement, any other Basic Document or the Residual Interest Instruments
(other than (i) the respective signatures of the Owner Trustee and the Trust
Agent; (ii) in the case of the Owner Trustee, the recitals contained in Section
7.03(a); and (iii) in the case of the Trust Agent, the recitals contained in
Section 7.03(b) and the certificate of authentication on the Residual Interest
Instruments) or the Notes, or of any Contract or related documents. The Owner
Trustee and the Trust Agent shall at no time have any responsibility or
liability for or with respect to the legality, validity and enforceability of
any Contract, or the perfection and priority of any security interest created by
any Contract in any Financed Vehicle or the maintenance of any such perfection
and priority, or for or with respect to the sufficiency of the Trust Estate or
its ability to generate the payments to be distributed to Owners under this
Agreement or the Noteholders under the Indenture, including, without limitation,
the existence, condition and ownership of any Financed Vehicle; the existence
and enforceability of any insurance thereon; the existence and contents of any
Contract on any computer or other record thereof; the validity of the assignment
of any Contract to the Trust or of any intervening assignment; the completeness
of any Contract; the performance or enforcement of any Contract; the compliance
by the Depositor, the Insurer or the Servicer with any warranty or
representation made under any Basic Document or in any related document or the
accuracy of any such warranty or representation; or any action of the
Administrator, the Indenture Trustee or the Servicer or any subservicer taken in
the name of the Owner Trustee or the Trust Agent.

      Section 7.07 Owner Trustee and Trust Agent May Own Residual Interest
Instruments and Notes. The Owner Trustee and the Trust Agent, each in its
individual or any other capacity, may become the owner or pledgee of Residual
Interest Instruments or Notes and may deal with the Depositor, the Insurer, the
Administrator, the Indenture Trustee and the Servicer in banking transactions
with the same rights as it would have if it were not Owner Trustee or Trust
Agent, as the case may be.

                                  ARTICLE VIII

                    COMPENSATION AND INDEMNIFICATION OF OWNER
                             TRUSTEE AND TRUST AGENT

      Section 8.01 Owner Trustee's and Trust Agent's Fees and Expenses. The
Owner Trustee and the Trust Agent shall receive as compensation for their
respective services hereunder such fees as have been separately agreed upon
before the date hereof between the Depositor and the Owner Trustee and the Trust
Agent, respectively, and the Owner Trustee and the Trust Agent shall be entitled
to be reimbursed by the Administrator for other reasonable expenses hereunder,
including the reasonable compensation, expenses and disbursements of such
agents, representatives, experts and counsel as the Owner Trustee or the Trust
Agent may employ in connection with the exercise and performance of its rights
and its duties hereunder.

      Section 8.02 Indemnification. The Owner Trustee and the Trust Agent shall
be entitled to indemnification as provided in the Administration Agreement and
the Sale and Servicing Agreement.

                                      -25-
<PAGE>
      Section 8.03 Payments to the Owner Trustee or Trust Agent. Any amounts
paid to the Owner Trustee or the Trust Agent pursuant to this Article shall be
deemed not to be a part of the Trust Estate immediately after such payment.

                                   ARTICLE IX

                         TERMINATION OF TRUST AGREEMENT

      Section 9.01 Termination of Trust Agreement.

      (a) This Agreement (other than Article VIII) and the Trust shall terminate
and be of no further force or effect upon the earlier of (i) final distribution
of all monies or other property or proceeds of the Trust Estate in accordance
with the terms of the Indenture, the Sale and Servicing Agreement and Article
Five and (ii) the expiration of 21 years from the death of the last survivor of
the descendants of Joseph P. Kennedy, the late Ambassador of the United States
to the Court of St. James's, living on the date hereof. The bankruptcy,
liquidation, dissolution, death or incapacity of any Owner shall not (i) operate
to terminate this Agreement or the Trust, (ii) entitle such Owner's legal
representatives or heirs to claim an accounting or to take any action or
proceeding in any court for a partition or winding up of all or any part of the
Trust or Trust Estate or (iii) otherwise affect the rights, obligations and
liabilities of the parties hereto.

      (b) Except as provided in Section 9.01(a), neither the Depositor, the
Insurer nor any Owner shall be entitled to revoke or dissolve the Trust.

      (c) Notice of any dissolution of the Trust, specifying the Distribution
Date upon which Owners shall surrender their Residual Interest Instruments to
the Paying Agent for payment of the final distribution and cancellation, shall
be given by the Trust Agent by letter to Owners mailed within five Business Days
of receipt of notice of such termination from the Servicer given pursuant to
Section 8.01(b) of the Sale and Servicing Agreement, stating (i) the
Distribution Date upon or with respect to which final distribution in respect of
the Residual Interest Instruments shall be made upon presentation and surrender
of the Residual Interest Instruments at the office of the Paying Agent in the
City of New York therein designated, (ii) the amount of any such final payment
and (iii) that the Record Date otherwise applicable to such Distribution Date is
not applicable, payments being made only upon presentation and surrender of the
Residual Interest Instruments at the office of the Paying Agent therein
specified. The Trust Agent shall give such notice to the Certificate Registrar
(if other than the Trust Agent) and the Paying Agent (if other than the Trust
Agent) at the time such notice is given to Owners. After satisfaction of any
liabilities of the Trust in accordance with the Statutory Trust Statute, and
upon presentation and surrender of the Residual Interest Instruments, the Paying
Agent shall cause to be distributed to Owners, on a pro rata basis, any amounts
remaining in the Residual Distribution Account and the Trust upon the
termination of this Agreement. In addition, the Trust Agent shall notify the
Rating Agencies upon the final distribution in respect of the Residual Interest
Instruments.

      (d) In the event that all of the Owners shall not surrender their Residual
Interest Instruments for cancellation within six months after the date specified
in the above-mentioned

                                      -26-
<PAGE>
written notice, the Trust Agent shall give a second written notice to the
remaining Owners to surrender their Residual Interest Instruments for
cancellation and receive the final distribution with respect thereto. If within
one year after the second notice all the Owners shall not have been surrendered
for cancellation, the Trust Agent may take appropriate steps, or may appoint an
agent to take appropriate steps, to contact the remaining Owners concerning
surrender of their Residual Interest Instruments, and the cost thereof shall be
paid out of the funds and other assets that shall remain subject to this
Agreement.

      (e) Upon the winding up of the Trust and its termination, the Owner
Trustee shall cause the Certificate of Trust to be canceled by filing a
certificate of cancellation with the Secretary of State in accordance with the
provisions of Section 3810 of the Statutory Trust Statute. Upon the filing of
such certificate, the Trust and this Agreement (other than Article VIII) shall
terminate and be of no further force or effect.

                                    ARTICLE X

                   SUCCESSOR OWNER TRUSTEES, ADDITIONAL OWNER
                             TRUSTEE AND TRUST AGENT

      Section 10.01 Eligibility Requirements for Owner Trustee. The Owner
Trustee shall at all times be a Domestic corporation satisfying the provisions
of Section 3807(a) of the Statutory Trust Statute; authorized to exercise
corporate trust powers; having a combined capital and surplus of at least
$50,000,000 and subject to supervision or examination by federal or state
authorities; and having (or having a parent that has) a rating of at least Baa3
by Moody's and A-1 by Standard & Poor's. If such corporation shall publish
reports of condition at least annually pursuant to law or to the requirements of
the aforesaid supervising or examining authority, then for the purpose of this
Section, the combined capital and surplus of such corporation shall be deemed to
be its combined capital and surplus as set forth in its most recent report of
condition so published. In case at any time the Owner Trustee shall cease to be
eligible in accordance with the provisions of this Section, the Owner Trustee
shall resign immediately in the manner and with the effect specified in Section
10.02.

      Section 10.02 Resignation or Removal of Owner Trustee. The Owner Trustee
may at any time resign and be discharged from the trusts hereby created by
giving written notice thereof to the Administrator and the Insurer. Upon
receiving such notice of resignation, the Administrator shall promptly appoint a
successor Owner Trustee , which shall be approved by the Insurer, by written
instrument, in duplicate, one copy of which instrument shall be delivered to the
resigning Owner Trustee and one copy to the successor Owner Trustee; provided
that the Depositor and the Insurer shall have received written confirmation from
each Rating Agency that the proposed appointment will not result in an increased
capital charge to the Insurer by either Rating Agency. If no successor Owner
Trustee shall have been so appointed and have accepted appointment within 30
days after the giving of such notice of resignation, the resigning Owner Trustee
or the Insurer may petition any court of competent jurisdiction for the
appointment of a successor Owner Trustee.

                                      -27-
<PAGE>
      If at any time the Owner Trustee shall cease to be eligible in accordance
with the provisions of Section 10.01 and shall fail to resign after written
request therefor by the Administrator or the Insurer, or if at any time the
Owner Trustee shall be legally unable to act, or shall be adjudged bankrupt or
insolvent, or a receiver of the Owner Trustee or of its property shall be
appointed, or any public officer shall take charge or control of the Owner
Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, or if at any time the Owner Trustee shall have
breached any representation or warranty contained in Section 7.03(a)(iii)
(without regard to any knowledge qualification), then the Administrator or the
Insurer may remove the Owner Trustee. If the Owner Trustee shall be removed
under the authority of the immediately preceding sentence, the Administrator
shall promptly appoint a successor Owner Trustee acceptable to the Insurer by
written instrument, in duplicate, one copy of which instrument shall be
delivered to the outgoing Owner Trustee so removed and one copy to the successor
Owner Trustee, and shall pay all fees owed to the outgoing Owner Trustee.

      Any resignation or removal of the Owner Trustee and appointment of a
successor Owner Trustee pursuant to any of the provisions of this Section shall
not become effective until acceptance of appointment by the successor Owner
Trustee pursuant to Section 10.03 and payment of all fees and expenses owed to
the outgoing Owner Trustee. The Administrator shall provide notice of such
resignation or removal of the Owner Trustee to each Rating Agency.

      Section 10.03 Successor Owner Trustee. Any successor Owner Trustee
appointed pursuant to Section 10.02 shall execute, acknowledge and deliver to
the Administrator, the Insurer and to its predecessor Owner Trustee an
instrument accepting such appointment under this Agreement, and thereupon the
resignation or removal of the predecessor Owner Trustee shall become effective,
and such successor Owner Trustee, without any further act, deed or conveyance,
shall become fully vested with all the rights, powers, duties and obligations of
its predecessor under this Agreement, with like effect as if originally named as
Owner Trustee. The predecessor Owner Trustee shall upon payment of its fees and
expenses deliver to the successor Owner Trustee all documents and statements and
monies held by it under this Agreement; and the Administrator and the
predecessor Owner Trustee shall execute and deliver such instruments and do such
other things as may reasonably be required for fully and certainly vesting and
confirming in the successor Owner Trustee all such rights, powers, duties and
obligations.

      No successor Owner Trustee shall accept appointment as provided in this
Section unless at the time of such acceptance such successor Owner Trustee shall
be eligible pursuant to Section 10.01.

      Upon acceptance of appointment by a successor Owner Trustee pursuant to
this Section, the Administrator shall mail notice thereof to all Owners, the
Insurer, the Depositor, the Servicer, the Indenture Trustee, the Noteholders and
each Rating Agency. If the Administrator shall fail to mail such notice within
ten days after acceptance of such appointment by the successor Owner Trustee,
the successor Owner Trustee shall cause such notice to be mailed at the expense
of the Administrator.

      Section 10.04 Merger or Consolidation of Owner Trustee. Any corporation
into which the Owner Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Owner Trustee

                                      -28-
<PAGE>
shall be a party, or any corporation succeeding to all or substantially all of
the corporate trust business of the Owner Trustee, shall be the successor of the
Owner Trustee hereunder, without the execution or filing of any instrument or
any further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding; provided, that such corporation shall be eligible
pursuant to Section 10.01 and, provided, further, that the Owner Trustee shall
mail notice of such merger or consolidation to each Rating Agency.

      Section 10.05 Appointment of Co-Trustee or Separate Trustee.
Notwithstanding any other provisions of this Agreement, at any time, for the
purpose of meeting any legal requirements of any jurisdiction in which any part
of the Trust Estate or any Financed Vehicle may at the time be located, the
Administrator and the Owner Trustee acting jointly shall have the power and
shall execute and deliver all instruments to appoint one or more Persons
approved by the Administrator, the Insurer and Owner Trustee to act as
co-trustee, jointly with the Owner Trustee, or as separate trustee or separate
trustees, of all or any part of the Trust Estate, and to vest in such Person, in
such capacity, such title to the Trust or any part thereof and, subject to the
other provisions of this Section, such powers, duties, obligations, rights and
trusts as the Administrator and the Owner Trustee may consider necessary or
desirable. If the Administrator shall not have joined in such appointment within
15 days after the receipt by it of a request to do so, the Owner Trustee and the
Insurer shall have the power to make such appointment. No co-trustee or separate
trustee under this Agreement shall be required to meet the terms of eligibility
as a successor Owner Trustee, provided that such co-trustee or successor trustee
must be acceptable to the Rating Agencies and no notice of the appointment of
any co-trustee or separate trustee shall be required pursuant to Section 10.03.

      Section 10.06 Appointment of Trust Agent. Each separate trustee and
co-trustee shall, to the extent permitted by law, be appointed and act subject
to the following provisions and conditions:

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

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

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

      Any notice, request or other writing given to the Owner Trustee shall be
deemed to have been given to each of the then separate trustees and co-trustees,
as effectively as if given to each of them. Every instrument appointing any
separate trustee or co-trustee shall refer to this

                                      -29-
<PAGE>
Agreement and the conditions of this Article. Each separate trustee and
co-trustee, upon its acceptance of the trusts conferred, shall be vested with
the estates or property specified in its instrument of appointment, either
jointly with the Owner Trustee or separately, as may be provided therein,
subject to all the provisions of this Agreement, specifically including every
provision of this Agreement relating to the conduct of, affecting the liability
of or affording protection to, the Owner Trustee. Each such instrument shall be
filed with the Owner Trustee and a copy thereof given to the Administrator and
the Insurer.

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

      The Owner Trustee on behalf of the Trust hereby appoints Citibank, N.A. as
Trust Agent for the purpose of establishing and maintaining the Residual
Distribution Account and making the distributions therefrom to persons entitled
thereto pursuant to Section 5.02 of this Agreement and for purposes of
performing the other duties specified to be performed by the Trust Agent under
this Agreement and the other Basic Documents. The Owner Trustee and the Trust
Agent each agree that upon the occurrence and continuation of an Insurer
Default, the Trust Agent shall resign and the Owner Trustee shall assume all
rights, duties and obligations of the Trust Agent under the Sale and Servicing
Agreement and this Agreement, including without limitation, the obligations of
the Trust Agent pursuant to Sections 3.02, 3.03, 3.04, 3.05, 3.07, 3.08, 3.09,
3.10, 5.01 and 5.02 hereof. The Trust Agent, in its capacity as Trust Agent,
shall not have any rights, duties or obligations except as expressly provided in
this Agreement and the Sale and Servicing Agreement.

      The Trust Agent may at any time resign and be discharged from the trusts
hereby created by giving 30 days' written notice thereof to the Owner Trustee
and the Administrator. Upon receiving such notice of resignation, the Owner
Trustee shall promptly appoint a successor Trust Agent by written instrument, in
duplicate, one copy of which instrument shall be delivered to the resigning
Trust Agent and one copy to the successor Trust Agent.

                                   ARTICLE XI

                                  MISCELLANEOUS

      Section 11.01 Supplements and Amendments

      (a) This Agreement may be amended by the Depositor, the Owner Trustee and
the Trust Agent, with the prior written consent of the Insurer, but without the
consent of any of the Noteholders or the Owners, provided the Rating Agency
Condition is satisfied, to cure any ambiguity, to correct or supplement any
provisions herein which may be inconsistent with any of the provisions herein or
make any other provisions with respect to matters or questions arising

                                      -30-
<PAGE>
hereunder that shall not be inconsistent with the provisions of this Agreement;
provided, however, that (i) any such action shall not materially and adversely
affect the interests of any Noteholder or Owner; (ii) any such action shall be
deemed not to materially and adversely affect the interest of any Noteholder if
the Rating Agency Condition is satisfied; and (iii) any such action shall be
deemed not to materially and adversely affect the interest of any Owner if the
Person requesting such amendment obtains an opinion of counsel to such effect,
or Owners representing 100% of the Percentage Interests consent to such
amendment.

      (b) Subject to Section 11.14, this Agreement may also be amended from time
to time with the prior written consent of the Insurer by the Depositor, the
Owner Trustee and the Trust Agent, with the consent of Noteholders representing
not less than 51% of the Outstanding Amount acting together as a single class
(which consent of any Holder of a Note given pursuant to this Section or
pursuant to any other provision of this Agreement shall be conclusive and
binding on such Holder and on all future Holders of such Note issued upon the
transfer thereof or in exchange thereof or in lieu thereof whether or not
notation of such consent is made thereon) and, if such amendment materially and
adversely affects the interests of the Owners, with the consent of Owners
evidencing not less than 51% of the Percentage Interests, provided, in each
case, the Rating Agency Condition is satisfied, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Agreement, or of modifying in any manner the rights of the Noteholders or
the Owners; provided, however, that no such amendment may (i) increase or reduce
in any manner the amount of, or accelerate or delay the timing of, collections
of payments on Contracts or distributions that shall be required to be made for
the benefit of the Noteholders or Owners or (ii) reduce the aforesaid percentage
of the Outstanding Amount of the Notes or Percentage Interest of the Owners
required to consent to any such amendment, without the consent of the Owners of
all outstanding Notes and Residual Interest Instruments.

      (c) Prior to the execution of any such amendment or consent, the Owner
Trustee shall furnish written notification of the substance of such amendment or
consent, together with a copy thereof, to the Indenture Trustee, the Insurer,
the Administrator and each Rating Agency.

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

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

      (f) In connection with the execution of any amendment to this Agreement or
any other Basic Document to which the Trust is a party and for which amendment
the Owner Trustee's consent is sought, each of the Owner Trustee and the Trust
Agent shall be entitled to receive and conclusively rely upon an Opinion of
Counsel to the effect that such amendment is

                                      -31-
<PAGE>
authorized or permitted by the Basic Documents and that all conditions precedent
in the Basic Documents for the execution and delivery thereof by the Trust, the
Owner Trustee or the Trust Agent, as the case may be, have been satisfied. The
Owner Trustee and the Trust Agent may, but shall not be obligated to, enter into
any such amendment that affects the Owner Trustee's or the Trust Agent's own
rights, duties or immunities under this Agreement or otherwise.

      Section 11.02 [RESERVED]

      Section 11.03 Limitations on Rights of Others. Except for Section 2.07,
the provisions of this Agreement are solely for the benefit of the Owner
Trustee, the Trust Agent, the Depositor, the Insurer, the Owners, the
Administrator and, to the extent expressly provided herein, the Indenture
Trustee and the Noteholders, and nothing in this Agreement (other than Section
2.07), whether express or implied, shall be construed to give to any other
Person any legal or equitable right, remedy or claim in the Trust Estate or
under or in respect of this Agreement or any covenants, conditions or provisions
contained herein.

      Section 11.04 Notices. All demands, notices and communications under this
Agreement shall be in writing personally delivered or mailed by certified mail,
return receipt requested, and shall be deemed to have been duly given upon
receipt in the case of (a) the Owner Trustee, at the Owner Trustee Corporate
Trust Office; (b) the Depositor, at Onyx Acceptance Financial Corporation, 27051
Towne Centre Drive, Suite 200, Foothill Ranch, California 92610; (c) the
Insurer, at MBIA Insurance Corporation, 113 King Street, Armonk, New York 10504;
(d) the Trust Agent, at Citibank, N.A., Attention: Institutional Trust Services
- Onyx Acceptance Owner Trust 2003-B, 111 Wall Street, 14th Floor, Zone 3, New
York, New York 10005; (e) the Servicer or the Administrator, at Onyx Acceptance
Corporation, 27051 Towne Centre Drive, Suite 100, Foothill Ranch, California
92610 or (f) as to each party, at such other address as shall be designated by
such party in a written notice to each other party. Any notice required or
permitted to be mailed to an Owner shall be given by first-class mail, postage
prepaid, at the address of such Owner as shown in the Certificate Register. Any
notice so mailed within the time prescribed in this Agreement shall be
conclusively presumed to have been duly given, whether or not the Owner receives
such notice.

      Section 11.05 Severability of Provisions. If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions or
terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement or of the Residual
Interest Instruments or the rights of the Owners thereof.

      Section 11.06 Counterparts. This Agreement may be executed in several
counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.

      Section 11.07 Successors and Assigns. All covenants and agreements
contained herein shall be binding upon, and inure to the benefit of, each of the
Depositor, the Insurer, the Owner Trustee, the Trust Agent and their respective
successors and permitted assigns and each Owner and its successors and permitted
assigns, all as herein provided. Any request, notice, direction,

                                      -32-
<PAGE>
consent, waiver or other instrument or action by an Owner shall bind the
successors and assigns of such Owner.

      Section 11.08 No Petition.

      (a) The Depositor will not at any time institute against the Trust any
bankruptcy proceedings under any United States federal or state bankruptcy or
similar law in connection with any obligations relating to the Residual Interest
Instruments, the Notes, this Agreement or any of the other Basic Documents.

      (b) Each of the Owner Trustee and the Trust Agent, by entering into this
Agreement, each Owner, by accepting a Residual Interest Instrument, and the
Indenture Trustee and each Noteholder, by accepting the benefits of this
Agreement, hereby covenant and agree that they will not at any time institute
against the Seller, the Depositor or the Trust, or join in any institution
against the Seller, the Depositor or the Trust of, any bankruptcy proceedings
under any United States federal or state bankruptcy or similar law in connection
with any obligations relating to the Residual Interest Instruments, the Notes,
this Agreement or any of the other Basic Documents.

      Section 11.09 No Recourse. Each Owner, by accepting a Residual Interest
Instrument, acknowledges that such Owner's Residual Interest Instruments
represent a beneficial interest in the Trust only and does not represent an
interest in or obligation of the Depositor, the Servicer, the Seller, the
Administrator, the Owner Trustee, the Trust Agent, the Indenture Trustee or any
of their respective Affiliates and no recourse may be had against such parties
or their assets, except as may be expressly set forth or contemplated in this
Agreement, the Residual Interest Instruments or the other Basic Documents.

      Section 11.10 Residual Interest Instruments Nonassessable and Fully Paid.
Owners shall not be personally liable for obligations of the Trust. Except as
expressly provided herein, the interests represented by the Residual Interest
Instruments shall be nonassessable for any losses or expenses of the Trust or
for any reason whatsoever, and, upon authentication thereof pursuant to Section
3.03, the Residual Interest Instruments shall be deemed fully paid.

      Section 11.11 Headings. The headings of the various Articles and Sections
herein are for convenience of reference only and shall not define or limit any
of the terms or provisions hereof.

      Section 11.12 Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

      Section 11.13 Depositor Payment Obligation. To the extent not timely paid
by the Trust pursuant to Section 5.02(a), the Servicer shall be responsible for
payment of the Administrator's compensation pursuant to Section 3 of the
Administration Agreement and shall reimburse the Administrator for all expenses
and liabilities of the Administrator incurred thereunder.

                                      -33-
<PAGE>
      Section 11.14 Certain Matters Regarding the Insurer. So long as an Insurer
Default shall not have occurred and be continuing, the Insurer shall have the
right to exercise all rights, including voting rights, which the Noteholders or
Owners are entitled to exercise pursuant to this Agreement, without any consent
of such Noteholders or Owners; provided, however, that without the consent of
each Noteholder or Owner affected thereby, the Insurer shall not exercise such
rights to amend this Agreement in any manner that would (i) reduce the amount
of, or delay the timing of, collections of payments on the Contracts or
distributions which are required to be made on any Note or Residual Interest
Instrument, (ii) adversely affect in any material respect the interests of the
Owners of any Notes or Residual Interest Instruments, or (iii) alter the rights
of any such Owner to consent to such amendment.

      Notwithstanding any provision in this Agreement (except Section 4.06) to
the contrary, in the event an Insurer Default shall have occurred and be
continuing, the Insurer shall not have the right to take any action under this
Agreement or to control or direct the actions of the Trust, the Depositor, the
Owner Trustee or the Trust Agent pursuant to the terms of this Agreement, nor
shall the consent of the Insurer be required with respect to any action (or
waiver of a right to take action) to be taken by the Trust, the Depositor, the
Owner Trustee, the Trust Agent or the Owners of the Notes or the Residual
Interest Instruments; provided, that the consent of the Insurer shall be
required at all times with respect to any amendment of this Agreement; and
provided further, that notwithstanding the foregoing, each of the provisions in
Section 4.06(a) of this Agreement shall continue to be effective notwithstanding
that an Insurer Default may have occurred and be continuing.

      Section 11.15 Fiduciary Duties. The duties and responsibilities of the
Owner Trustee and the Trust Agent shall be limited to those expressly provided
for in this Agreement. The parties hereto agree that except for the purpose of
the foregoing sentence, neither the Owner Trustee nor the Trust Agent shall have
management responsibilities or owe any fiduciary duties to the Insurer.

                                      -34-
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective officers hereunto duly authorized, as of the
day and year first above written.

                             ONYX ACCEPTANCE FINANCIAL CORPORATION, as Depositor

                             By:________________________________________________
                                   Name:________________________________________
                                   Title:_______________________________________

                             THE BANK OF NEW YORK (DELAWARE), as Owner Trustee

                             By:________________________________________________
                                   Name:________________________________________
                                   Title:_______________________________________

                             CITIBANK, N.A., not in its individual capacity, but
                             solely as Trust Agent

                             By:________________________________________________
                                   Name:________________________________________
                                   Title:_______________________________________
<PAGE>
                                                                       EXHIBIT A

                                     FORM OF
                             CERTIFICATE OF TRUST OF
                       ONYX ACCEPTANCE OWNER TRUST 2003-B

      This Certificate of Trust of Onyx Acceptance Owner Trust 2003-B (the
"Trust") is being duly executed and filed by the undersigned, as trustees, to
form a statutory trust under the Delaware Statutory Trust Act (12 Del. Code,
Section 3801 et seq. (the "Act")).

      1.Name. The name of the statutory trust formed hereby is Onyx Acceptance
Owner Trust 2003-B.

      2.Delaware Trustee. The name and business address of the trustee of the
Trust in the State of Delaware is The Bank of New York (Delaware), 502 White
Clay Center, P.O. Box 6973, Newark, Delaware 19714, Attention: Corporate Trust
Department.

      3.Effective Date. This Certificate of Trust shall be effective May____,
2003.

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

                                 THE BANK OF NEW YORK (DELAWARE), not
                                 in its individual capacity but solely as Owner
                                 Trustee

                                 By:____________________________________________
                                       Name:____________________________________
                                      Title:____________________________________
<PAGE>
                                                                       EXHIBIT B

                      FORM OF RESIDUAL INTEREST INSTRUMENT

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