Document:

<PAGE>

                                                                     EXHIBIT 4.1

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

                    TRIAD AUTOMOBILE RECEIVABLES TRUST 200_-_

                      Class A-__ _____% Asset Backed Notes
                      Class A-__ _____% Asset Backed Notes
                      Class A-__ _____% Asset Backed Notes
                      Class A-__ _____% Asset Backed Notes
                      Class B-__ _____% Asset Backed Notes

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

                                    INDENTURE

                           Dated as of ________, 200_

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

                               [INDENTURE TRUSTEE]
                                Indenture Trustee

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

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                Page
                                                                                                                ----
<S>                                                                                                             <C>
ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE.........................................................     2

        SECTION 1.1      Definitions.........................................................................     2
        SECTION 1.2      Incorporation by Reference of Trust Indenture Act...................................    10
        SECTION 1.3      Rules of Construction...............................................................    11

ARTICLE II THE NOTES.........................................................................................    11

        SECTION 2.1      Form................................................................................    11
        SECTION 2.2      Execution, Authentication and Delivery..............................................    12
        SECTION 2.3      Temporary Notes.....................................................................    12
        SECTION 2.4      Registration; Registration of Transfer and Exchange.................................    13
        SECTION 2.5      Mutilated, Destroyed, Lost or Stolen Notes..........................................    15
        SECTION 2.6      Persons Deemed Owner................................................................    16
        SECTION 2.7      Payment of Principal and Interest; Defaulted Interest...............................    16
        SECTION 2.8      Cancellation........................................................................    17
        SECTION 2.9      Release of Collateral...............................................................    17
        SECTION 2.10     Book-Entry Notes....................................................................    17
        SECTION 2.11     Notices to Clearing Agency..........................................................    18
        SECTION 2.12     Definitive Notes....................................................................    18

ARTICLE III COVENANTS, REPRESENTATIONS AND WARRANTIES........................................................    19

        SECTION 3.1      Payment of Principal and Interest...................................................    19
        SECTION 3.2      Maintenance of Office or Agency.....................................................    19
        SECTION 3.3      Money for Payments to be Held in Trust..............................................    19
        SECTION 3.4      Existence...........................................................................    21
        SECTION 3.5      Protection of Trust Estate..........................................................    21
        SECTION 3.6      Opinions as to Trust Estate.........................................................    22
        SECTION 3.7      Performance of Obligations; Servicing of Receivables................................    22
        SECTION 3.8      Negative Covenants..................................................................    23
        SECTION 3.9      Annual Statement as to Compliance...................................................    24
        SECTION 3.10     Issuer May Consolidate, Etc. Only on Certain Terms..................................    24
        SECTION 3.11     Successor or Transferee.............................................................    26
        SECTION 3.12     No Other Business...................................................................    27
        SECTION 3.13     No Borrowing........................................................................    27
        SECTION 3.14     Servicer's Obligations..............................................................    27
        SECTION 3.15     Guarantees, Loans, Advances and Other Liabilities...................................    27
        SECTION 3.16     Capital Expenditures................................................................    27
        SECTION 3.17     Compliance with Laws................................................................    27
        SECTION 3.18     Restricted Payments.................................................................    27
        SECTION 3.19     Notice of Events of Default.........................................................    28
        SECTION 3.20     Further Instruments and Acts........................................................    28
        SECTION 3.21     Amendments of Sale and Servicing Agreement and Trust Agreement......................    28
        SECTION 3.22     Income Tax Characterization.........................................................    28
        SECTION 3.23     Representations and Warranties......................................................    28

ARTICLE IV SATISFACTION AND DISCHARGE........................................................................    29

        SECTION 4.1      Satisfaction and Discharge of Indenture.............................................    29
        SECTION 4.2      Application of Trust Money..........................................................    30
        SECTION 4.3      Repayment of Moneys Held by Note Paying Agent.......................................    31
</TABLE>

                                        i
<PAGE>

<TABLE>
<S>                                                                                                              <C>
ARTICLE V REMEDIES...........................................................................................    31

        SECTION 5.1      Events of Default...................................................................    31
        SECTION 5.2      Rights Upon Event of Default........................................................    32
        SECTION 5.3      Collection of Indebtedness and Suits for Enforcement by Indenture Trustee...........    33
        SECTION 5.4      Remedies............................................................................    36
        SECTION 5.5      Optional Preservation of the Receivables............................................    37
        SECTION 5.6      Priorities..........................................................................    37
        SECTION 5.7      Limitation of Suits.................................................................    38
        SECTION 5.8      Unconditional Rights of Noteholders To Receive Principal and Interest...............    39
        SECTION 5.9      Restoration of Rights and Remedies..................................................    39
        SECTION 5.10     Rights and Remedies Cumulative......................................................    39
        SECTION 5.11     Delay or Omission Not a Waiver......................................................    39
        SECTION 5.12     Control by Noteholders..............................................................    40
        SECTION 5.13     Waiver of Past Defaults.............................................................    40
        SECTION 5.14     Undertaking for Costs...............................................................    40
        SECTION 5.15     Waiver of Stay or Extension Laws....................................................    41
        SECTION 5.16     Action on Notes.....................................................................    41
        SECTION 5.17     Performance and Enforcement of Certain Obligations..................................    41

ARTICLE VI THE INDENTURE TRUSTEE.............................................................................    42

        SECTION 6.1      Duties of Indenture Trustee.........................................................    42
        SECTION 6.2      Rights of Indenture Trustee.........................................................    43
        SECTION 6.3      Individual Rights of Indenture Trustee..............................................    45
        SECTION 6.4      Indenture Trustee's Disclaimer......................................................    45
        SECTION 6.5      Notice of Defaults..................................................................    45
        SECTION 6.6      Reports by Indenture Trustee to Holders.............................................    45
        SECTION 6.7      Compensation and Indemnity..........................................................    45
        SECTION 6.8      Replacement of Indenture Trustee....................................................    46
        SECTION 6.9      Successor Indenture Trustee by Merger...............................................    48
        SECTION 6.10     Appointment of Co-Indenture Trustee or Separate Indenture Trustee...................    48
        SECTION 6.11     Eligibility: Disqualification.......................................................    49
        SECTION 6.12     Preferential Collection of Claims Against Issuer....................................    50
        SECTION 6.13     Representations and Warranties of the Indenture Trustee.............................    50
        SECTION 6.14     Waiver of Setoffs...................................................................    50
        SECTION 6.15     Control by the Controlling Party....................................................    50

ARTICLE VII NOTEHOLDERS' LISTS AND REPORTS...................................................................    51

        SECTION 7.1      Issuer To Furnish To Indenture Trustee Names and Addresses of Noteholders...........    51
        SECTION 7.2      Preservation of Information; Communications to Noteholders..........................    51
        SECTION 7.3      Reports by Issuer...................................................................    51
        SECTION 7.4      Reports by Indenture Trustee........................................................    52

ARTICLE VIII ACCOUNTS, DISBURSEMENTS AND RELEASES............................................................    52

        SECTION 8.1      Collection of Money.................................................................    52
        SECTION 8.2      Release of Trust Estate.............................................................    52
        SECTION 8.3      Opinion of Counsel..................................................................    53

ARTICLE IX SUPPLEMENTAL INDENTURES...........................................................................    53

        SECTION 9.1      Supplemental Indentures Without Consent of Noteholders..............................    53
        SECTION 9.2      Supplemental Indentures with Consent of Noteholders.................................    54
        SECTION 9.3      Execution of Supplemental Indentures................................................    56
        SECTION 9.4      Effect of Supplemental Indenture....................................................    56
        SECTION 9.5      Conformity With Trust Indenture Act.................................................    56
        SECTION 9.6      Reference in Notes to Supplemental Indentures.......................................    56
</TABLE>

                                       ii
<PAGE>

<TABLE>
<S>                                                                                                              <C>
ARTICLE X REDEMPTION OF NOTES................................................................................    57

        SECTION 10.1     Redemption..........................................................................    57
        SECTION 10.2     Form of Redemption Notice...........................................................    57
        SECTION 10.3     Notes Payable on Redemption Date....................................................    58

ARTICLE XI MISCELLANEOUS.....................................................................................    58

        SECTION 11.1     Compliance Certificates and Opinions, etc...........................................    58
        SECTION 11.2     Form of Documents Delivered to Indenture Trustee....................................    59
        SECTION 11.3     Acts of Noteholders.................................................................    60
        SECTION 11.4     Notices, etc., to Indenture Trustee, Issuer and Rating Agencies.....................    61
        SECTION 11.5     Notices to Noteholders; Waiver......................................................    62
        SECTION 11.6     [Reserved]..........................................................................    63
        SECTION 11.7     Conflict with Trust Indenture Act...................................................    63
        SECTION 11.8     Effect of Headings and Table of Contents............................................    63
        SECTION 11.9     Successors and Assigns..............................................................    63
        SECTION 11.10    Separability........................................................................    63
        SECTION 11.11    Benefits of Indenture...............................................................    63
        SECTION 11.12    Legal Holidays......................................................................    64
        SECTION 11.13    Governing Law.......................................................................    64
        SECTION 11.14    Counterparts........................................................................    64
        SECTION 11.15    Recording of Indenture..............................................................    64
        SECTION 11.16    Trust Obligation....................................................................    64
        SECTION 11.17    Limitation of Liability of Owner Trustee............................................    65
        SECTION 11.18    No Petition.........................................................................    65
        SECTION 11.19    Inspection..........................................................................    65
        SECTION 11.20    Nonpublic Personal Information......................................................    65
</TABLE>

EXHIBITS

    EXHIBIT A-1  Form of Class A-__ Note
    EXHIBIT A-2  Form of Class A-__ Note
    EXHIBIT A-3  Form of Class A-__ Note
    EXHIBIT A-4  Form of Class A-__ Note
    EXHIBIT B    Form of Class B Note
    EXHIBIT C    Form of Certificate as to Initial Purchase
    EXHIBIT D    Form of Qualified Institutional Buyer Transferee's Certificate

                                       iii
<PAGE>

                              CROSS-REFERENCE TABLE

            Cross-reference sheet showing the location in the Indenture of the
provisions inserted pursuant to Sections 310 through 318(a) inclusive of the
Trust Indenture Act of 1939.(1)

<TABLE>
<CAPTION>
              Trust Indenture Act of 1939                                           Indenture Section
              ---------------------------                                           -----------------
<S>                                                                                 <C>
Section 310
         (a)(1)................................................................           6.11
         (a)(2)................................................................           6.11
         (a)(3)................................................................        6.10, 6.11
         (a)(4)................................................................      Not Applicable
         (a)(5)................................................................           6.11
         (b)...................................................................           6.11
         (c)...................................................................      Not Applicable
Section 311
         (a)...................................................................           6.12
         (b)...................................................................           6.12
         (c)...................................................................      Not Applicable
Section 312
         (a)...................................................................        7.1, 7.2(a)
         (b)...................................................................          7.2(b)
         (c)...................................................................          7.2(c)
Section 313
         (a)...................................................................            7.4
         (b)...................................................................            7.4
         (c)...................................................................            7.4
         (d)...................................................................            7.4
Section 314
         (a)(1)................................................................          7.3(a)
         (a)(2)................................................................          7.3(a)
         (a)(3)................................................................          7.3(a)
         (a)(4)................................................................            3.9
         (b)(1)................................................................          3.6(a)
         (b)(2)................................................................          3.6(b)
         (c)(1)................................................................      4.1, 8.2, 11.1
         (c)(2)................................................................      4.1, 8.2, 11.1
         (c)(3)................................................................            8.2
         (d)(1)................................................................          11.1(b)
         (d)(2)................................................................          11.1(b)
         (d)(3)................................................................          11.1(b)
         (e)...................................................................          11.1(a)
</TABLE>

----------

(1) This Cross-Reference Table is not part of the Indenture.

                                       iv
<PAGE>

<TABLE>
<S>                                                                                 <C>
Section 315
         (a)...................................................................     6.1(b), 6.1(c)(i)
         (b)...................................................................         6.5, 11.5
         (c)...................................................................          6.1(a)
         (d)(1)................................................................      6.1(b), 6.1(c)
         (d)(2)................................................................        6.1(c)(ii)
         (d)(3)................................................................        6.1(c)(iii)
         (e)...................................................................           5.14
Section 316
         (a)...................................................................        5.12, 5.13
         (b)...................................................................            5.8
         (c)...................................................................            2.6
Section 317
         (a)(1)................................................................          5.3(a)
         (a)(2)................................................................          5.3(e)
         (b)...................................................................            3.3
Section 318
         (a)...................................................................           11.7
</TABLE>

                                        v
<PAGE>

            INDENTURE dated as of ________, 200_, between TRIAD AUTOMOBILE
RECEIVABLES TRUST 200_-_, a Delaware statutory trust (the "Issuer"), and
[INDENTURE TRUSTEE], a ______________________, as Indenture Trustee (the
"Indenture Trustee").

            Each party agrees as follows for the benefit of the other party and
for the benefit of the Holders of the Issuer's Class A-__ _____% Asset Backed
Notes (the "Class A- Notes"), the Class A-__ _____% Asset Backed Notes (the
"Class A- Notes"), the Class A-__ _____% Asset Backed Notes (the "Class A-
Notes), the Class A-__ _____% Asset Backed Notes (the "Class A- Notes" and
collectively with the Class A-__ Notes, the Class A-__ Notes and the Class A-__
Notes, the "Class A Notes"), and the Class B _____% Asset Backed Notes (the
"Class B Notes" and collectively with the Class A Notes, the "Notes").

            As security for the payment and performance by the Issuer of its
obligations under this Indenture and the Notes, the Issuer has agreed to assign
the Collateral (as defined below) as collateral to the Indenture Trustee on
behalf of the Noteholders [and the Insurer].

            [[Insurer] (the "Insurer") has issued and delivered a financial
guaranty insurance policy, dated the Closing Date (with endorsements, the "Note
Policy"), pursuant to which the Insurer guarantees Policy Claim Amounts, as
defined in the Note Policy.]

            [As an inducement to the Insurer to issue and deliver the Note
Policy, the Issuer and the Insurer have executed and delivered the Insurance and
Indemnity Agreement, dated as of ________, 200_ (as amended from time to time,
the "Insurance Agreement"), among the Insurer, the Issuer, the Indenture
Trustee, Triad Financial Corporation and Triad Financial Special Purpose LLC.]

            [As an additional inducement to the Insurer to issue the Note
Policy, and as security for the performance by the Issuer of the Insurer Issuer
Secured Obligations and as security for the performance by the Issuer of the
Indenture Trustee Issuer Secured Obligations, the Issuer has agreed to assign
the Collateral (as defined below) as collateral to the Indenture Trustee for the
benefit of the Issuer Secured Parties, as their respective interests may
appear.]

                                        1
<PAGE>

                                 GRANTING CLAUSE

            The Issuer hereby Grants to the Indenture Trustee at the Closing
Date, for the benefit of the Issuer Secured Parties, all of the Issuer's right,
title and interest in and to (a) the Receivables; (b) an assignment of the
security interests in the Financed Vehicles granted by Obligors pursuant to the
Receivables and any other interest of the Issuer in the Financed Vehicles; (c)
with respect to the Receivables, the right to cause the related Dealer or
Third-Party Lender to repurchase such Receivables, as a result of a breach of
representation or warranty in the related Dealer Agreement or the related Auto
Loan Purchase and Sale Agreement, respectively; (d) all rights under any Service
Contracts on the related Financed Vehicles; (e) any proceeds with respect to the
Receivables from claims on any physical damage, credit life or disability
insurance policies covering Financed Vehicles or Obligors; (f) the Trust
Accounts and all funds on deposit from time to time in the Trust Accounts, and
in all investments and proceeds thereof and all rights of the Issuer therein
(including all income thereon); (g) the Issuer's rights and benefits, but none
of its obligations or burdens, under the Purchase Agreement, including the
delivery requirements, representations and warranties and the cure and
repurchase obligations of Triad under the Purchase Agreement; (h) all items
contained in the Receivable Files and any and all other documents that Triad
keeps on file in accordance with its customary procedures relating to the
Receivables, the Obligors or the Financed Vehicles; (i) the Issuer's rights and
benefits, but none of its obligations or burdens, under the Sale and Servicing
Agreement (including all rights of the Depositor under the Purchase Agreement);
and (j) all present and future claims, demands, causes and choses of action in
respect of any or all of the foregoing and all payments on or under and all
proceeds of every kind and nature whatsoever in respect of any or all of the
foregoing, including all proceeds of the conversion, voluntary or involuntary,
into cash or other liquid property, all cash proceeds, accounts, accounts
receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts,
insurance proceeds, condemnation awards, rights to payment of any and every kind
and other forms of obligations and receivables, instruments and other property
which at any time constitute all or part of or are included in the proceeds of
any of the foregoing (collectively, the "Collateral").

            The foregoing Grant is made in trust to the Indenture Trustee on
behalf of the Noteholders [and for the benefit of the Insurer]. The Indenture
Trustee hereby acknowledges such Grant, accepts the trusts under this Indenture
in accordance with the provisions of this Indenture and agrees to perform its
duties required in this Indenture to the end that the interests of such parties,
recognizing the priorities of their respective interests, may be adequately and
effectively protected.

                                   ARTICLE I

                   Definitions and Incorporation by Reference

            SECTION 1.1 Definitions. Except as otherwise specified herein, the
following terms have the respective meanings set forth below for all purposes of
this Indenture.

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

                                        2
<PAGE>

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

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

            "Basic Documents" means this Indenture, the Certificate of Trust,
the Trust Agreement, the Sale and Servicing Agreement, [the Insurance
Agreement,] the Purchase Agreement and other documents and certificates
delivered in connection therewith.

            "Benefit Plan Entity" has the meaning specified in Section 2.4.

            "Book-Entry Notes" means a beneficial interest in the Notes,
ownership and transfers of which will be made through book entries by a Clearing
Agency as described in Section 2.10. The Class A Notes will initially be
Book-Entry Notes.

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

            "Certificate" means a trust certificate evidencing the beneficial
interest of a Certificateholder in the Trust.

            "Certificateholder" means the Person in whose name a Certificate is
registered on the Certificate Register.

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

            "Class A Notes" means, collectively, the Class A-__ Notes, the Class
A-__ Notes, the Class A-__ Notes and the Class A-__ Notes.

            "Class A- Interest Rate" means _____% per annum [(computed on the
basis of a [360]-day year and the actual number of days in the related Interest
Period)].

                                        3
<PAGE>

            "Class A- Notes" means the Class A-__ _____% Asset Backed Notes,
substantially in the form of Exhibit A-1.

            "Class A- Interest Rate" means _____% per annum [(computed on the
basis of a [360]-day year of twelve 30-day months)].

            "Class A- Notes" means the Class A-__ _____% Asset Backed Notes,
substantially in the form of Exhibit A-2.

            "Class A- Interest Rate" means _____% per annum [(computed on the
basis of a [360]-day year of twelve 30-day months)].

            "Class A- Notes" means the Class A-__ _____% Asset Backed Notes,
substantially in the form of Exhibit A-3.

            "Class A- Interest Rate" means _____% per annum [(computed on the
basis of a [360]-day year of twelve 30-day months)].

            "Class A- Notes" means the Class A-__ _____% Asset Backed Notes,
substantially in the form of Exhibit A-4.

            "Class B_ Interest Rate" means _____% per annum [(computed on the
basis of a [360]-day year and the actual number of days in the related Interest
Period)].

            "Class B__ Notes" means the Class B _____% Asset Backed Notes,
substantially in the form of Exhibit B.

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

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

            "Closing Date" means ________, 200_.

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

            "Collateral" has the meaning specified in the Granting Clause of
this Indenture.

            "Controlling Party" means [the Insurer, provided that if (i) an
Insurer Default has occurred and is continuing or (ii) all amounts payable to
the Class A Noteholders under this Indenture and the Insurer under the Insurance
Agreement have been paid in full, then the Controlling Party] means the
Indenture Trustee acting at the direction of the Majority Noteholders.

                                        4
<PAGE>

            "Corporate Trust Office" means the principal office of the Indenture
Trustee at which at any particular time its corporate trust business will be
administered which office at the date of the execution of this Agreement is
located at ___________, _______________ (facsimile number ____________),
Attention: _____________-Triad 200_-_, or at such other address as the Indenture
Trustee may designate from time to time by notice to the Noteholders, [the
Insurer,] the Servicer and the Issuer, or the principal corporate trust office
of any successor Indenture Trustee (the address of which the successor Indenture
Trustee will notify the Noteholders, [the Insurer,] the Servicer and the
Issuer).

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

            "Definitive Notes" has the meaning specified in Section 2.10. The
Class B Notes will initially be Definitive Notes.

            "Distribution Date" means, with respect to each Collection Period,
the 12th day of the following Collection Period, or, if such day is not a
Business Day, the immediately following Business Day, commencing ________, 200_.

            "ERISA" has the meaning specified in Section 2.4.

            "Event of Default" has the meaning specified in Section 5.1.

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

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

            "Grant" means mortgage, pledge, bargain, warrant, alienate, remise,
release, convey, assign, transfer, create, 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 will include all rights, powers and options (but none of the
obligations) of the Granting party thereunder, including the immediate and
continuing right to claim for, collect, receive and give receipt for principal
and interest payments in respect of the Collateral and all other moneys payable
thereunder, to give and receive notices and other communications, to make
waivers or other agreements, to exercise all rights and options, to bring
proceedings in the name of the 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 the Person in whose name a Note is
registered on the Note Register.

            "Indebtedness" means, with respect to any Person at any time, (a)
indebtedness or liability of such Person for borrowed money whether or not
evidenced by bonds, debentures, notes or other instruments, or for the deferred
purchase price of property or services (including

                                        5
<PAGE>

trade obligations); (b) obligations of such Person as lessee under leases which
should have been or should be, in accordance with generally accepted accounting
principles, recorded as capital leases; (c) current liabilities of such Person
in respect of unfunded vested benefits under plans covered by Title IV of ERISA;
(d) obligations issued for or liabilities incurred on the account of such
Person; (e) obligations or liabilities of such Person arising under acceptance
facilities; (f) obligations of such Person under any guarantees, endorsements
(other than for collection or deposit in the ordinary course of business) and
other contingent obligations to purchase, to provide funds for payment, to
supply funds to invest in any Person or otherwise to assure a creditor against
loss; (g) obligations secured by any lien on property or assets of such Person,
whether or not the obligations have been assumed by such Person; or (h)
obligations of such Person under any interest rate or currency exchange
agreement.

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

            "Indenture Trustee" means [Indenture Trustee], a
________________________, not in its individual capacity but as Indenture
Trustee under this Indenture, or any successor Indenture Trustee under this
Indenture.

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

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

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

            ["Insurer Default" means the occurrence and continuance of any of
the following events:

      (a)   the Insurer failing to make a payment required under the Note Policy
            in accordance with its terms;

      (b)   the Insurer (i) filing a petition or commencing any case or
            proceeding under any provision or chapter of the United States
            Bankruptcy Code or any other similar federal or state law relating
            to insolvency, bankruptcy, rehabilitation, liquidation

                                        6
<PAGE>

            or reorganization, (ii) making a general assignment for the benefit
            of its creditors, or (iii) having an order for relief entered
            against it under the United States Bankruptcy Code or any other
            similar federal or state law relating to insolvency, bankruptcy,
            rehabilitation, liquidation or reorganization which is final and
            nonappealable; or

      (c)   a court of competent jurisdiction, the Wisconsin Department of
            Insurance or other competent regulatory authority has entered a
            final and nonappealable order, judgment or decree (i) appointing a
            custodian, trustee, agent or receiver for the Insurer or for all or
            any material portion of its property or (ii) authorizing the taking
            of possession of all or any material portion of the property of the
            Insurer by a custodian, trustee, agent or receiver.]

            ["Insurer Issuer Secured Obligations" means all amounts and
obligations which the Issuer may at any time owe to or on behalf of the Insurer
under this Indenture, the Insurance Agreement or any other Basic Document.]

            "Interest Rate" means, with respect to the (i) Class A-__ Notes, the
Class A-__ Interest Rate, (ii) Class A-__ Notes, the Class A-__ Interest Rate,
(iii) Class A-__ Notes, the Class A-__ Interest Rate, (iv) Class A-__ Notes, the
Class A-__ Interest Rate and (v) Class B Notes, the Class B Interest Rate.

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

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

            "Issuer Secured Obligations" means [the Insurer Issuer Secured
Obligations and] the Indenture Trustee Issuer Secured Obligations.

            "Issuer Secured Parties" means [each of] the Indenture Trustee in
respect of the Indenture Trustee Issuer Secured Obligations [and the Insurer in
respect of the Insurer Issuer Secured Obligations.]

            "Majority Noteholders" means (i) if only the Class A Notes are
Outstanding, the holders of a majority of the Class A Notes, measured by
Outstanding Amount; (ii) if only the Class B Notes are Outstanding, the holders
of a majority of the Class B Notes, measured by Outstanding Amount; or (iii) if
both Class A Notes and Class B Notes are Outstanding, the holders of a majority
of the Class A Notes and Class B Notes, together, measured by Outstanding
Amount.

            "Note" means a Class A-__ Note, a Class A-__ Note, a Class A-__
Note, a Class A-__ Note or a Class B Note.

            "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

                                        7
<PAGE>

books of a Person maintaining an account with such Clearing Agency (directly as
a Clearing Agency Participant or as an indirect participant, in each case in
accordance with the rules of such Clearing Agency).

            "Note Paying Agent" 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 payments to and
distributions from the Collection Account and the Note Distribution Account,
including payment of principal of or interest on the Notes on behalf of the
Issuer.

            ["Note Policy" means the insurance policy issued by the Insurer with
respect to the Class A Notes, including any endorsements thereto.]

            "Note Register" and "Note Registrar" have the respective meanings
specified in Section 2.4.

            "Officer's Certificate" means a certificate signed by any Authorized
Officer of the Issuer, under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 11.1 and TIA Section 314
(unless signed by the Owner Trustee on behalf of the Issuer), and delivered to
the Indenture Trustee. Unless otherwise specified, any reference in this
Indenture to an Officer's Certificate will be to an Officer's Certificate of any
Authorized Officer of the Issuer.

            "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 Issuer and who is satisfactory to the Indenture Trustee
[and, if addressed to the Insurer, satisfactory to the Insurer,] and which will
comply with any applicable requirements of Section 11.1, and will 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:

            (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 Note Paying Agent in trust for the Noteholders (provided, however,
      that if such Notes are to be redeemed, notice of such redemption has been
      duly given pursuant to this Indenture or provision therefor, satisfactory
      to the Indenture Trustee); 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 Class A Notes which have been paid with proceeds of the
Note Policy will continue to remain Outstanding for purposes of this Indenture
until the Insurer has been paid

                                        8
<PAGE>

as subrogee hereunder or reimbursed pursuant to the Insurance Agreement as
evidenced by a written notice from the Insurer delivered to the Indenture
Trustee, and the Insurer will be deemed to be the Holder thereof to the extent
of any payments thereon made by the Insurer;] provided, further, that in
determining whether the Holders of the requisite Outstanding Amount of the Notes
have given any request, demand, authorization, direction, notice, consent or
waiver hereunder or under any Basic Document, Notes owned by the Issuer, any
other obligor upon the Notes, the Depositor, the Servicer or any Affiliate of
any of the foregoing Persons will be disregarded and deemed not to be
Outstanding, except that, in determining whether the Indenture Trustee will be
protected in relying upon any such request, demand, authorization, direction,
notice, consent or waiver, only Notes that a Responsible Officer of the
Indenture Trustee either actually knows to be so owned or has received written
notice thereof will 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, any other obligor upon the
Notes, the Depositor or any Affiliate of any of the foregoing Persons.

            "Outstanding Amount" means the aggregate principal amount of all
Notes, or class of Notes, as applicable, Outstanding at the date of
determination.

            "Person" means any individual, corporation, estate, partnership,
joint venture, association, joint stock company, trust (including any
beneficiary thereof), unincorporated organization or government or any agency or
political subdivision thereof.

            "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 2.5 in lieu of a mutilated, lost,
destroyed or stolen Note will 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.

            "Rating Agency Condition" means, with respect to any action, that
each Rating Agency has been given ten (10) days (or such shorter period as will
be acceptable to each Rating Agency) prior notice thereof and that each of the
Rating Agencies has notified the Depositor, the Servicer, [the Insurer,] the
Indenture Trustee, the Owner Trustee and the Issuer in writing that such action
will not result in a reduction or withdrawal of the then current rating of the
Notes.

            "Record Date" means, with respect to a Distribution Date, Redemption
Date or other date of determination, the close of business on the Business Day
immediately preceding such Distribution Date, Redemption Date or other date of
determination.

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

                                        9
<PAGE>

            "Redemption Price" means in the case of a redemption of the Notes
pursuant to Section 10.1(a), an amount equal to the then outstanding principal
amount of each class of Notes being redeemed plus accrued and unpaid interest
thereon to but excluding the Redemption Date.

            "Responsible Officer" means, with respect to the Indenture Trustee,
any officer within the Corporate Trust Office of the Indenture Trustee,
including any Vice President, Assistant Vice President, Assistant Treasurer,
Assistant Secretary, Trust Officer or any other officer of the Indenture Trustee
customarily performing functions similar to those performed by any of the above
designated officers and in each case, having direct responsibility for the
administration of this agreement, and also, with respect to a particular matter,
any other officer to whom such matter is referred because of such officer's
knowledge of and familiarity with the particular subject.

            "Sale and Servicing Agreement" means the Sale and Servicing
Agreement dated as of ________, 200_, among the Issuer, the Depositor, the
Custodian, the Servicer, the Indenture Trustee and the Backup Servicer, as the
same may be amended or supplemented from time to time.

            ["Scheduled Payments" has the meaning specified in the Note Policy.]

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

            "Termination Date" means [the latest of (i) the expiration of the
Note Policy and the return of the Note Policy to the Insurer for cancellation,
(ii) the date on which the Insurer has received payment and performance of all
Insurer Issuer Secured Obligations and (iii)] the date on which the Indenture
Trustee has received payment and performance of all Indenture Trustee Issuer
Secured Obligations.

            "Trust Estate" means all money, instruments, rights and other
property that are subject or intended to be subject to the lien and security
interest of this Indenture for the benefit of the Noteholders (including all
property and interests Granted to the Indenture Trustee), including all proceeds
thereof.

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

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

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

            SECTION 1.2 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:

                                       10
<PAGE>

            "Commission" means the Securities and Exchange Commission.

            "indenture securities" means the Notes.

            "indenture security holder" means a Noteholder.

            "indenture to be qualified" means this Indenture.

            "trustee" or "institutional trustee" means the Indenture Trustee.

            "obligor" on the indenture securities means the Issuer.

            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 1.3 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 U.S. generally accepted accounting
            principles as in effect on the date of this Agreement;

                  (iii) "or" is not exclusive;

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

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

                                   ARTICLE II

                                    The Notes

            SECTION 2.1 Form. The Class A-__ Notes, the Class A-__ Notes, the
Class A-__ Notes, the Class A-__ Notes and the Class B Notes, in each case
together with the Indenture Trustee's certificate of authentication, will be in
substantially the form set forth in Exhibits A-1, A-2, A-3, A-4 and B,
respectively, 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.

                                       11
<PAGE>

            The Definitive Notes will 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.

            Each Note will be dated the date of its authentication. The terms of
the Notes set forth in Exhibits A-1, A-2, A-3, A-4 and B are part of the terms
of this Indenture.

            SECTION 2.2 Execution, Authentication and Delivery. The Notes will
be executed on behalf of the Issuer by any of its Authorized Officers. 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 will 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 will, upon receipt of the [Note Policy and]
Issuer Order, authenticate and deliver Class A-__ Notes for original issue in an
aggregate principal amount of $_________, Class A-__ Notes for original issue in
an aggregate principal amount of $_________, Class A-__ Notes for original issue
in an aggregate principal amount of $_________, Class A-__ Notes for original
issue in an aggregate principal amount of $_________ and Class B Notes for
original issue in an aggregate principal amount of $_________. The Class A-__
Notes, Class A-__ Notes, Class A-__ Notes, Class A-__ Notes and Class B Notes
outstanding at any time may not exceed such amounts except as provided in
Section 2.5.

            The Notes will be issuable as registered Notes in the minimum
denomination of $1,000 and in integral multiples thereof (except for one Note of
each class which may be issued in a denomination other than an integral multiple
of $1,000).

            No Note will 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 herein
executed by the Indenture Trustee by the manual signature of one of its
authorized signatories, and such certificate upon any Note will be conclusive
evidence, and the only evidence, that such Note has been duly authenticated and
delivered hereunder.

            SECTION 2.3 Temporary Notes. Pending the preparation of Definitive
Notes, the Issuer may execute, and upon receipt of an Issuer Order the Indenture
Trustee will authenticate and deliver, temporary Notes which 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 will 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 3.2, without charge to the

                                       12
<PAGE>

Noteholder. Upon surrender for cancellation of any one or more temporary Notes,
the Issuer will execute and the Indenture Trustee will authenticate and deliver
in exchange therefor a like principal amount of Definitive Notes of authorized
denominations. Until so exchanged, the temporary Notes will in all respects be
entitled to the same benefits under this Indenture as Definitive Notes.

            SECTION 2.4 Registration; Registration of Transfer and Exchange. The
Issuer will cause to be kept a register (the "Note Register") in which, subject
to such reasonable regulations as it may prescribe, the Issuer will provide for
the registration of Notes and the registration of transfers of Notes. The
Indenture Trustee will 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 will 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
will have the right to inspect the Note Register at all reasonable times and to
obtain copies thereof, and the Indenture Trustee will have the right to
conclusively rely upon a certificate executed on behalf of the Note Registrar by
an Executive Officer thereof as to the names and addresses of the Noteholders of
the Notes and the principal amounts and number of such Notes.

            Subject to Sections 2.10 and 2.12, upon surrender for registration
of transfer of any Note at the office or agency of the Issuer to be maintained
as provided in Section 3.2, if the requirements of Section 8-401(a)(1) of the
UCC are met the Issuer will execute and upon its request the Indenture Trustee
will authenticate and the Noteholder will obtain from the Indenture Trustee, in
the name of the designated transferee or transferees, one or more new Notes, in
any authorized denominations, of the same class and a like aggregate principal
amount.

            At the option of the Noteholder, Notes may be exchanged for other
Notes in any authorized denominations, of the same class and 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, subject to Sections
2.10 and 2.12, if the requirements of Section 8-401(a)(1) of the UCC are met the
Issuer will execute and upon its request the Indenture Trustee will authenticate
and the Noteholder will 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 will 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.

            No transfer of a Class B Note will be made unless such transfer (i)
is made pursuant to an effective registration statement under the Securities Act
and any applicable state securities laws or (ii) is exempt from the registration
requirements under the Securities Act and such state securities laws. Each
prospective purchaser of the Class B Notes in the initial sale by the Issuer on
the Closing Date will deliver a completed and duly executed transferee's
certificate

                                       13
<PAGE>

(in the form of Exhibit C) to the Indenture Trustee. Thereafter, each
prospective purchaser of a Class B Note will deliver a completed and duly
executed transferee's certificate (in the form of Exhibit D for "qualified
institutional buyers"), to the Indenture Trustee and to the transferor for
inspection prior to effecting any requested transfer. The Issuer and the
Indenture Trustee may rely conclusively upon the information contained in any
such transferee's certificate in the absence of knowledge to the contrary. In
connection with any transfer of a Class B Note (other than (i) the initial
purchase of any Class B Note by the initial purchasers who deliver a
transferee's certificate in the form of Exhibit C and (ii) the purchase of any
Class B Note by a purchaser who delivers a transferee's certificate in the form
of Exhibit D), the Indenture Trustee will require an Opinion of Counsel to the
effect that such transfer may be effected without registration under the
Securities Act, which Opinion of Counsel, if so required, will be addressed to
the Issuer and the Indenture Trustee and will be secured at the expense of the
Holder. The Indenture Trustee may rely upon the representation of any transferee
made to the Indenture Trustee, and upon such Opinion of Counsel, and will be
fully protected in so doing. Any Note Owners of the Class B Notes will be deemed
to have agreed to these restrictions on transfer.

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

            Every Note presented or surrendered for registration of transfer or
exchange will be (i) duly endorsed by, or be accompanied by a written instrument
of transfer in the form attached to Exhibits A-1, A-2, A-3, A-4 and B duly
executed by, the Holder thereof or such Holder's attorney duly authorized in
writing, with such signature guaranteed by an "eligible guarantor institution"
meeting the requirements of the Note Registrar which requirements include
membership or participation in Securities Transfer Agents Medallion Program
("STAMP") or such other "signature guarantee program" as may be determined by
the Note Registrar in addition to, or in substitution for, STAMP, all in
accordance with the Exchange Act, and (ii) accompanied by such other documents
as the Indenture Trustee may require.

            Notwithstanding the foregoing, in the case of any sale or other
transfer of a Definitive Note, the transferor of such Definitive Note will be
required to represent and warrant in writing that the prospective transferee
either (a) is not (i) an employee benefit plan (as defined in section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended ("ERISA")),
which is subject to the provisions of Title I of ERISA, (ii) a plan (as defined
in section 4975(e)(1) of the Code), which is subject to Section 4975 of the
Code, or (iii) an entity whose underlying assets are deemed to be assets of a
plan described in (i) or (ii) above by reason of such plan's investment in the
entity (including, without limitation, an insurance company general account)
(any such entity described in clauses (i) through (iii), a "Benefit Plan
Entity") or (b) is a Benefit Plan Entity, which is purchasing a Class A Note and
the acquisition and holding of such Definitive Note by such prospective
transferee will be eligible for, and satisfy all

                                       14
<PAGE>

requirements of, a Department of Labor prohibited transaction class exemption.
Each transferee of a Book-Entry Note will be deemed to have made one of the
foregoing representations.

            No service charge will be made to a Noteholder for any registration
of transfer or exchange of Notes, but the Note Registrar 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 2.3 or 9.6 not involving any transfer.

            The preceding provisions of this Sections 2.4 notwithstanding, the
Issuer will not be required to make and the Note Registrar will 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 2.5 Mutilated, Destroyed, Lost or Stolen Notes. If (i) any
mutilated Note is surrendered to the Indenture Trustee, or the Indenture Trustee
receives evidence to its satisfaction of the destruction, loss or theft of any
Note, and (ii) there is delivered to the Indenture Trustee [and the Insurer
(unless an Insurer Default has occurred and is continuing)] such security or
indemnity as may be required by it to hold the Issuer, the Indenture Trustee
[and the Insurer] harmless, then, in the absence of notice to the Issuer, the
Note Registrar or the Indenture Trustee that such Note has been acquired by a
bona fide purchaser, and provided that the requirements of Section 8-405 of the
UCC are met, the Issuer will execute and upon its request the Indenture Trustee
will authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Note, a replacement Note; provided, however, that if
any such destroyed, lost or stolen Note, but not a mutilated Note, has become or
within seven days will be due and payable, or has been called for redemption,
instead of issuing a replacement Note, the Issuer may direct the Indenture
Trustee, in writing, to 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 bona fide purchaser of the
original Note in lieu of which such replacement Note was issued presents for
payment such original Note, the Issuer, the Indenture Trustee [and the Insurer]
will 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 bona fide purchaser, and will be entitled to recover upon the
security or indemnity provided therefor to the extent of any loss, damage, cost
or expense incurred by the Issuer or the Indenture Trustee in connection
therewith.

            Upon the issuance of any replacement Note under this Section 2.5,
the Issuer 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) connected therewith.

            Every replacement Note issued pursuant to this Section 2.5 in
replacement of any mutilated, destroyed, lost or stolen Note will constitute an
original additional contractual obligation of the Issuer, whether or not the
mutilated, destroyed, lost or stolen Note will be at any

                                       15
<PAGE>

time enforceable by anyone, and will 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 2.5 are exclusive and will 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 2.6 Persons Deemed Owner. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Indenture Trustee, any
agent of the Issuer or the Indenture Trustee[, and the Insurer] may treat the
Person in whose name any Note is registered (as of the Record Date) 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 agent of the Issuer or the Indenture Trustee will be affected by notice
to the contrary.

            SECTION 2.7 Payment of Principal and Interest; Defaulted Interest.

            (a) The Notes will accrue interest as provided in the forms of the
Class A-__ Note, the Class A-__ Note, the Class A-__ Note, the Class A-__ Note
and the Class B Note set forth in Exhibits A-1, A-2, A-3, A-4 and B,
respectively, and such interest will be due and payable on each Distribution
Date, as specified therein. 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 will be paid to the Person in whose name
such Note (or one or more Predecessor Notes) is registered on the Record Date,
by wire transfer or 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 2.12, 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 or on the applicable Final Scheduled
Distribution Date (and except for the Redemption Price for any Note called for
redemption pursuant to Section 10.1(a)) which will be payable as provided below.
The funds represented by any such checks returned undelivered will be held in
accordance with Section 3.3.

            (b) The principal of each Note will be payable in installments on
each Distribution Date, as applicable, as provided in the forms of the Class
A-__ Note, the Class A-__ Note, the Class A-__ Note, the Class A-__ Note and the
Class B Note set forth in Exhibits A-1, A-2, A-3, A-4 and B, respectively.
Notwithstanding the foregoing, the entire unpaid principal amount of the Notes
will be due and payable, if not previously paid, on the date on which an Event
of Default has occurred and is continuing, and the Notes have been declared
immediately due and payable in the manner provided in Section 5.2. All principal
payments on each class of Notes will be made pro rata to the Noteholders of such
class entitled thereto. Upon written notice from the Issuer, the Indenture
Trustee will 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 will be mailed or transmitted by facsimile prior
to such final Distribution Date and

                                       16
<PAGE>

will specify that such final installment will be payable only upon presentation
and surrender of such Note and will specify the place where such Note may be
presented and surrendered for payment of such installment. Notices in connection
with redemptions of Notes will be mailed to Noteholders as provided in Section
10.2.

            (c) [Promptly following the date on which all principal of and
interest on the Notes has been paid in full and the Notes have been surrendered
to the Indenture Trustee, the Indenture Trustee will, if the Insurer has paid
any amount in respect of the Notes under the Note Policy or otherwise which has
not been reimbursed to it, deliver such surrendered Notes to the Insurer.]

            SECTION 2.8 Cancellation. All Notes surrendered for payment,
registration of transfer, exchange or redemption will, if surrendered to any
Person other than the Indenture Trustee, be delivered to the Indenture Trustee
and will 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 will be promptly canceled by the
Indenture Trustee. No Notes will be authenticated in lieu of or in exchange for
any Notes canceled as 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 will timely 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 2.9 Release of Collateral. The Indenture Trustee will, on or
after the Termination Date, release any remaining portion of the Trust Estate
from the lien created by this Indenture and deposit in the Collection Account
any funds then on deposit in any other Trust Account. The Indenture Trustee will
release property from the lien created by this Indenture pursuant to this
Section 2.9 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 11.1.

            SECTION 2.10 Book-Entry Notes. The Class A Notes, upon original
issuance, will be issued in the form of typewritten Notes representing the
Book-Entry Notes, to be delivered to the Indenture Trustee on behalf of The
Depository Trust Company, the initial Clearing Agency, by, or on behalf of, the
Issuer. Such Notes will 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 2.12. The Class B Notes will, upon original
issuance, be issued in the form of Definitive Notes to be delivered to the order
of the Depositor. With respect to the Book-Entry Notes, unless and until
definitive, fully registered Notes (the "Definitive Notes") have been issued to
Note Owners pursuant to Section 2.12:

            (i) the provisions of this Section 2.10 will be in full force and
      effect;

                                       17
<PAGE>

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

            (iii) to the extent that the provisions of this Section 2.10
      conflict with any other provisions of this Indenture, the provisions of
      this Section will control;

            (iv) the rights of Note Owners will be exercised only through the
      Clearing Agency and will be limited to those established by law and
      agreements between such Note Owners and the Clearing Agency and/or the
      Clearing Agency Participants. Unless and until Definitive Notes are issued
      pursuant to Section 2.12, the initial 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;

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

            (vi) Note Owners may receive copies of any reports sent to
      Noteholders pursuant to this Indenture, upon written request, together
      with a certification that they are Note Owners and payment of reproduction
      and postage expenses associated with the distribution of such reports,
      from the Indenture Trustee at the Corporate Trust Office.

            SECTION 2.11 Notices to Clearing Agency. With respect to the
Book-Entry Notes, whenever a notice or other communication to the Noteholders is
required under this Indenture, unless and until Definitive Notes have been
issued to Note Owners pursuant to Section 2.12, the Indenture Trustee will give
all such notices and communications specified herein to be given to the
Noteholders to the Clearing Agency, and has no obligation to the Note Owners.

            SECTION 2.12 Definitive Notes. If (i) the Servicer advises the
Indenture Trustee in writing that the Clearing Agency is no longer willing or
able to properly discharge its responsibilities with respect to the Book-Entry
Notes, and the Servicer is unable to locate a qualified successor, (ii) the
Servicer at its option advises the Indenture Trustee in writing that it elects
to terminate the book-entry system through the Clearing Agency or (iii) after
the occurrence of an Event of Default, Note Owners representing beneficial
interests aggregating at least a majority of the Outstanding Amount of the
Book-Entry Notes advise the Indenture Trustee through the Clearing Agency in
writing that the continuation of a book-entry system through the Clearing Agency
is no longer in the best interests of the Owners of the Book-Entry Notes, then
the Clearing Agency will notify all Owners of Book-Entry Notes and the Indenture
Trustee of the occurrence of any such event and of the availability of
Definitive Notes to such

                                       18
<PAGE>

Owners requesting the same. Upon surrender to the Indenture Trustee of the
typewritten Note or Notes representing the Book-Entry Notes by the Clearing
Agency, accompanied by registration instructions, the Issuer will execute and
the Indenture Trustee will authenticate the Definitive Notes in accordance with
the instructions of the Clearing Agency. None of the Issuer, the Note Registrar
or the Indenture Trustee will be liable for any delay in delivery of such
instructions and may conclusively rely on, and will be fully protected in
relying on, such instructions. Upon the issuance of Definitive Notes, the
Indenture Trustee will recognize the Holders of the Definitive Notes as
Noteholders.

                                  ARTICLE III

                    Covenants, Representations and Warranties

            SECTION 3.1 Payment of Principal and Interest. The Issuer will duly
and punctually pay the principal of and interest on the Notes in accordance with
the terms of the Notes and this Indenture. Without limiting the foregoing, 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 (i) for the benefit of the Class A-l Notes, to
Class A-__ Noteholders, (ii) for the benefit of the Class A-__ Notes, to Class
A-__ Noteholders, (iii) for the benefit of the Class A-__ Notes, to Class A-__
Noteholders, (iv) for the benefit of the Class A-__ Notes, to Class A-__
Noteholders and (v) for the benefit of the Class B Notes, to the Class B
Noteholders. Amounts properly withheld under the Code by any Person from a
payment to any Noteholder of interest and/or principal will be considered as
having been paid by the Issuer to such Noteholder for all purposes of this
Indenture.

            SECTION 3.2 Maintenance of Office or Agency. The Issuer will
maintain in _______________, 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 will fail to maintain any such
office or agency or will 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. Issuer hereby
appoints the Indenture Trustee as paying agent for the Certificates.

            SECTION 3.3 Money for Payments to be Held in Trust. On or before
each Distribution Date and Redemption Date, the Issuer will deposit or cause to
be deposited in the Note Distribution Account from the Collection Account (and
cause all other transfers to and from the accounts provided for herein to be
made) an aggregate sum sufficient to pay the amounts then becoming due under the
Notes, such sum to be held in trust for the benefit of the Persons entitled
thereto and (unless the Note Paying Agent is the Indenture Trustee) will
promptly notify the Indenture Trustee of its action or failure so to act.

            The Issuer will cause each Note Paying Agent other than the
Indenture Trustee to execute and deliver to the Indenture Trustee [and the
Insurer] an instrument in which such Note

                                       19
<PAGE>

Paying Agent will agree with the Indenture Trustee (and if the Indenture Trustee
acts as Note Paying Agent, it hereby so agrees), subject to the provisions of
this Section, that such Note 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 will 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) of which it has actual knowledge 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 a Note 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 Note 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 Note Paying Agent to pay to the Indenture Trustee all sums held
in trust by such Note 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 Note
Paying Agent; and upon such a payment by any Note Paying Agent to the Indenture
Trustee, such Note Paying Agent will be released from all further liability with
respect to such money.

            Subject to applicable laws with respect to the escheat of funds, any
money held by the Indenture Trustee or any Note 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 will be discharged from
such trust and be paid to the Issuer on Issuer Request [with the consent of the
Insurer (unless an Insurer Default has occurred and is continuing)] and will be
deposited by the Indenture Trustee in the Collection Account; and the Holder of
such Note will thereafter, as an unsecured general creditor, look only to the
Issuer for payment thereof (but only to the extent of the amounts so paid to the
Issuer), and all liability of the Indenture Trustee or such Note Paying Agent
with respect to such trust money will thereupon cease; [provided, however, that
if such money or any portion thereof had been previously deposited by the
Insurer or the Indenture Trustee for the payment of principal or interest on the
Notes, to the extent any amounts are owing to the Insurer, such amounts will be
paid promptly to the Insurer upon the

                                       20
<PAGE>

Indenture Trustee's receipt of a written request by the Insurer to such effect;
and] provided, further, that the Indenture Trustee or such Note Paying Agent,
before being required to make any such repayment, will at the expense of the
Issuer cause to be published once, in a newspaper published in the English
language, customarily published on each Business Day and of general circulation
in New York, New York, notice that such money remains unclaimed and that, after
a date specified therein, which will not be less than 30 days from the date of
such publication, any unclaimed balance of such money then remaining will be
repaid to the Issuer. The Indenture Trustee will 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 moneys due and payable but not
claimed is determinable from the records of the Indenture Trustee or of any Note
Paying Agent, at the last address of record for each such Holder).

            SECTION 3.4 Existence. Except as otherwise permitted by the
provisions of Section 3.10, the Issuer will keep in full effect its existence,
rights and franchises as a statutory trust under the laws of the State of
Delaware (unless it becomes, or any successor Issuer hereunder is or becomes,
organized under the laws of any other state or of the United States of America,
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 will be necessary to protect the validity and enforceability
of this Indenture, the Notes, the Collateral and each other instrument or
agreement included in the Trust Estate.

            SECTION 3.5 Protection of Trust Estate. The Issuer intends the
security interest Granted pursuant to this Indenture in favor of the Issuer
Secured Parties to be prior to all other liens in respect of the Trust Estate,
and the Issuer will take all actions necessary to obtain and maintain, in favor
of the Indenture Trustee, for the benefit of the Issuer Secured Parties, a first
lien on and a first priority, perfected security interest in the Trust Estate,
which security interest will be enforceable against third-party creditors. The
Issuer will from time to time prepare (or will cause to be prepared), execute
and deliver all such supplements and amendments hereto and all such financing
statements, continuation statements, instruments of further assurance and other
instruments, and will take such other action necessary or advisable to:

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

            (ii) maintain or preserve the lien and security interest (and the
      priority thereof) in favor of the Indenture Trustee for the benefit of the
      Issuer Secured Parties 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 Trust Estate and the rights of
      the Indenture Trustee in such Trust Estate against the claims of all
      Persons and parties;

                                       21
<PAGE>

            (vi) pay all taxes or assessments levied or assessed upon the Trust
      Estate when due; and

            (vii) maintain or preserve all of the Issuer's right, title and
      interest in its rights and benefits, but none of its obligations or
      burdens, under the Purchase Agreement and the Sale and Servicing
      Agreement, including the Issuer's rights under the Purchase Agreement and
      the Sale and Servicing Agreement, to enforce the delivery requirements,
      representations and warranties and the cure and repurchase obligations of
      Triad under the Purchase Agreement and the Sale and Servicing Agreement.

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

            SECTION 3.6 Opinions as to Trust Estate.

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

            (b) Within 120 days after the beginning of each calendar year,
beginning with the first calendar year beginning more than six months after the
Closing Date, the Issuer will furnish to the Indenture Trustee [and the Insurer]
an Opinion of Counsel either stating that, in the opinion of such counsel, such
action has been taken with respect to the recording, filing, re-recording and
refiling of this Indenture, any indentures supplemental hereto and any other
requisite documents and with respect to the execution and filing of any
financing statements and continuation statements as are necessary to maintain
the lien and security interest created by this Indenture and reciting the
details of such action or stating that in the opinion of such counsel no such
action is necessary to maintain such lien and security interest. Such Opinion of
Counsel will also describe the recording, filing, re-recording and refiling of
this Indenture, any indentures supplemental hereto and any other requisite
documents and the execution and filing of any financing statements and
continuation statements that will, in the opinion of such counsel, be required
to maintain the lien and security interest of this Indenture until April 30 in
the following calendar year.

            SECTION 3.7 Performance of Obligations; Servicing of Receivables.

            (a) The Issuer will not take any action and will use its best
efforts not to permit any action to be taken by others that would release any
Person from any of such Person's material covenants or obligations under any
instrument or agreement included in the Trust Estate or that would result in the
amendment, hypothecation, subordination, termination or discharge of,

                                       22
<PAGE>

or impair the validity or effectiveness of, any such instrument or agreement,
except as ordered by any bankruptcy or other court or as expressly provided in
the Basic Documents or such other instrument or agreement.

            (b) The Issuer may contract with other Persons [acceptable to the
Insurer (so long as no Insurer Default has occurred and is continuing)] to
assist it in performing its duties under this Indenture, and any performance of
such duties by a Person identified to the Indenture Trustee [and the Insurer] in
an Officer's Certificate of the Issuer will be deemed to be action taken by the
Issuer; provided that the Issuer will remain liable for performing these duties
hereunder. Initially, the Issuer has contracted with the Servicer 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 the Basic Documents and in the
instruments and agreements included in the Trust Estate, including, preparing
(or causing to prepared) and 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 will not waive, amend, modify, supplement or
terminate any Basic Document or any provision thereof without the consent of the
Indenture Trustee[, the Insurer] or the Majority Noteholders.

            (d) If a responsible officer of the Issuer has actual knowledge of
the occurrence of a Servicer Termination Event under the Sale and Servicing
Agreement, the Issuer will promptly notify the Indenture Trustee[, the Insurer]
and the Rating Agencies thereof in accordance with Section 11.4, and will
specify in such notice the action, if any, the Issuer is taking in respect of
such default. If a Servicer Termination Event arises from the failure of the
Servicer to perform any of its duties or obligations under the Sale and
Servicing Agreement with respect to the Receivables, the Issuer will take all
reasonable steps available to it to remedy such failure.

            (e) The Issuer agrees that it will not waive timely performance or
observance by the Servicer or the Depositor of their respective duties under the
Basic Documents [(x) without the prior consent of the Insurer (unless an Insurer
Default has occurred and is continuing) or (y)] if the effect thereof would
adversely affect the Holders of the Notes.

            SECTION 3.8 Negative Covenants. So long as any Notes are
Outstanding, the Issuer will 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 Trust Estate, unless
      directed to do so by the Controlling Party;

            (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 assert any claim against
      any present or former Noteholder

                                       23
<PAGE>

      by reason of the payment of the taxes levied or assessed upon any part of
      the Trust Estate; or

            (iii) (A) permit the validity or effectiveness of this Indenture to
      be impaired, or permit the lien in favor of the Indenture Trustee created
      by this Indenture to be amended, hypothecated, subordinated, terminated or
      discharged, or permit any Person to be released from any covenants or
      obligations with respect to the Notes under this Indenture except as may
      be expressly permitted hereby, (B) permit any lien, charge, excise, claim,
      security interest, mortgage or other encumbrance (other than the lien of
      this Indenture) to be created on or extend to or otherwise arise upon or
      burden the Trust Estate or any part thereof or any interest therein or the
      proceeds thereof (other than tax liens, mechanics' liens and other liens
      that arise by operation of law, in each case on a Financed Vehicle and
      arising solely as a result of an action or omission of the related
      Obligor), (C) permit the lien of this Indenture not to constitute a valid
      first priority (other than with respect to any such tax, mechanics' or
      other lien) security interest in the Trust Estate, or (D) amend, modify or
      fail to comply with the provisions of the Basic Documents without the
      prior written consent of the Controlling Party.

            SECTION 3.9 Annual Statement as to Compliance. The Issuer will
deliver to the Indenture Trustee [and the Insurer], within 120 days after the
end of each fiscal year of the Issuer (commencing with the fiscal year ended
December 31, 200_), and otherwise in compliance with the requirements of TIA
Section 314(a)(4) an Officer's Certificate stating, as to the Authorized Officer
signing such Officer's Certificate, that

            (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 the Basic Documents 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 will 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 will be a Person organized and existing under
      the laws of the United States of America or any state and will expressly
      assume, by an indenture supplemental hereto, executed and delivered to the
      Indenture Trustee, in form satisfactory to the Indenture Trustee [and the
      Insurer (so long as no Insurer Default has occurred and is 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 on the part of the Issuer to be performed or observed, all as
      provided herein;

                                       24
<PAGE>

            (ii) immediately after giving effect to such transaction, no Default
      or Event of Default has occurred and is continuing;

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

            (iv) the Issuer has received an Opinion of Counsel (and has
      delivered copies thereof to the Indenture Trustee [and the Insurer (so
      long as no Insurer Default has occurred and is continuing)]) to the effect
      that such transaction will not have any material adverse tax consequence
      to the Issuer, [the Insurer,] any Noteholder or the Certificateholder;

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

            (vi) the Issuer has delivered to the Indenture Trustee an Officer's
      Certificate and an Opinion of Counsel 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 complied with (including any filing required by the
      Exchange Act); and

            (vii) [so long as no Insurer Default has occurred and is continuing,
      the Issuer will have given the Insurer written notice of such
      consolidation or merger at least 20 Business Days prior to the
      consummation of such action and will 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 will not convey or transfer all or substantially all
of its properties or assets, including those included in the Trust Estate, to
any Person, unless

            (i) the Person that acquires by conveyance or transfer the
      properties and assets of the Issuer the conveyance or transfer of which is
      hereby restricted will (A) be a United States citizen or a Person
      organized and existing under the laws of the United States of America or
      any state, (B) expressly assume, by an indenture supplemental hereto,
      executed and delivered to the Indenture Trustee, in form satisfactory to
      the Indenture Trustee[, and the Insurer (so long as no Insurer Default has
      occurred and is 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 each of the Basic Documents on the part
      of the Issuer to be performed or observed, all as provided herein, (C)
      expressly agree by means of such supplemental indenture that all right,
      title and interest so conveyed or transferred will 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)

                                       25
<PAGE>

      expressly agree by means of such supplemental indenture that such Person
      (or if a group of persons, then one specified Person) will prepare (or
      cause to be prepared) and 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 transaction, no Default
      or Event of Default has occurred and is continuing;

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

            (iv) the Issuer has received an Opinion of Counsel (and will have
      delivered copies thereof to the Indenture Trustee [and the Insurer (so
      long as no Insurer Default has occurred and is continuing)]) to the effect
      that such transaction will not have any material adverse tax consequence
      to the Issuer, [the Insurer,] any Noteholder or the Certificateholder;

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

            (vi) the Issuer will have delivered to the Indenture Trustee [and
      the Insurer] an Officer's Certificate and an Opinion of Counsel each
      stating that such conveyance or transfer 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 filing required by the Exchange Act); and

            (vii) [so long as no Insurer Default has occurred and is continuing,
      the Issuer will have given the Insurer written notice of such conveyance
      or transfer at least 20 Business Days prior to the consummation of such
      action and will have received the prior written approval of the Insurer of
      such conveyance or transfer and the transferee 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.]

            (c) The Issuer will not change its jurisdiction of organization
without notifying the Indenture Trustee [and the Insurer] and taking any actions
necessary to maintain a first priority perfected security interest in the
Collateral under this Indenture.

            SECTION 3.11 Successor or Transferee.

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

            (b) Upon a conveyance or transfer of all the assets and properties
of the Issuer pursuant to Section 3.10 (b), Triad Automobile Receivables Trust
200_-_ will be released from every covenant and agreement of this Indenture to
be observed or performed on the part of the

                                       26
<PAGE>

Issuer with respect to the Notes immediately upon the delivery of written notice
to the Indenture Trustee stating that Triad Automobile Receivables Trust 200_-_
is to be so released.

            SECTION 3.12 No Other Business. The Issuer will not engage in any
business other than financing, purchasing, owning, selling and managing the
Receivables in the manner contemplated by the Basic Documents and activities
incidental thereto.

            SECTION 3.13 No Borrowing. The Issuer will not issue, incur, assume,
guarantee or otherwise become liable, directly or indirectly, for any
Indebtedness except for (i) the Notes, (ii) [obligations owing from time to time
to the Insurer under the Insurance Agreement and] (iii) any other Indebtedness
permitted by or arising under the Basic Documents. The proceeds of the Notes
will be used exclusively to fund the Issuer's purchase of the Receivables and
the other assets specified in the Sale and Servicing Agreement[, to fund the
Spread Account] and to pay the Issuer's organizational, transactional and
start-up expenses.

            SECTION 3.14 Servicer's Obligations. The Issuer will use its best
efforts to cause the Servicer to comply with Sections 4.9, 4.10, 4.11 and 5.10
of the Sale and Servicing Agreement.

            SECTION 3.15 Guarantees, Loans, Advances and Other Liabilities.
Except as contemplated by the Sale and Servicing Agreement or this Indenture,
the Issuer will not make any loan or advance or credit to, or guarantee
(directly or indirectly or by an instrument having the effect of assuring
another's payment or performance on any obligation or capability of so doing or
otherwise), endorse or otherwise become contingently liable, directly or
indirectly, in connection with the obligations, stocks or dividends of, or own,
purchase, repurchase or acquire (or agree contingently to do so) any stock,
obligations, assets or securities of, or any other interest in, or make any
capital contribution to, any other Person.

            SECTION 3.16 Capital Expenditures. The Issuer will not make any
expenditure (by long-term or operating lease or otherwise) for capital assets
(either realty or personalty).

            SECTION 3.17 Compliance with Laws. The Issuer will 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
Basic Document.

            SECTION 3.18 Restricted Payments. The Issuer will not, directly or
indirectly, (i) pay any dividend or make any distribution (by reduction of
capital or otherwise), whether in cash, property, securities or a combination
thereof, to the Owner Trustee or any owner of a beneficial interest in the
Issuer or otherwise with respect to any ownership or equity interest or security
in or of the Issuer or to the Servicer, (ii) redeem, purchase, retire or
otherwise acquire for value any such ownership or equity interest or security or
(iii) set aside or otherwise segregate any amounts for any such purpose;
provided, however, that the Issuer may make, or cause to be made, distributions
to the Servicer, the Owner Trustee, the Backup Servicer, [the Insurer,] the
Indenture Trustee and the Certificateholders as permitted by, and to the extent
funds are available for such purpose under, the Sale and Servicing Agreement or
Trust Agreement.

                                       27
<PAGE>

The Issuer will not, directly or indirectly, make payments to or distributions
from the Collection Account except in accordance with the Basic Documents.

            SECTION 3.19 Notice of Events of Default. Upon a responsible officer
of the Issuer having actual knowledge thereof, the Issuer agrees to give the
Indenture Trustee[, the Insurer] and the Rating Agencies prompt written notice
of each Default or Event of Default hereunder and each default on the part of
the Servicer or the Depositor of its obligations under the Sale and Servicing
Agreement.

            SECTION 3.20 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 3.21 Amendments of Sale and Servicing Agreement and Trust
Agreement. The Issuer will not agree to any amendment to Section 12.1 of the
Sale and Servicing Agreement or Section 10.1 of the Trust Agreement to eliminate
the requirements thereunder that the Indenture Trustee or the Holders of the
Notes consent to amendments thereto as provided therein.

            SECTION 3.22 Income Tax Characterization. For purposes of federal
income, state and local income and franchise and any other income taxes, the
Issuer will treat the Notes as indebtedness and each Noteholder (or beneficial
Note Owner) will be deemed, by virtue of acquisition of its interest in such
Note, to have agreed, to treat the Notes as indebtedness for all applicable tax
reporting purposes.

            SECTION 3.23 Representations and Warranties. The Issuer represents
and warrants that:

            (a) Security Interest. This Indenture creates a valid and continuing
security interest (as defined in the applicable UCC) in the Receivables in favor
of the Indenture Trustee, which security interest is prior to all other Liens,
and is enforceable as such as against creditors of and purchasers from the
Seller. The Issuer owns and has good and marketable title to the Receivables
free and clear of any Lien (other than the Lien in favor of the Indenture
Trustee), claim or encumbrance of any Person. The Issuer is not aware of any
judgments or tax liens filed against the Issuer.

            (b) All Filings Made. The Issuer has taken all steps necessary to
perfect the Indenture Trustee's security interest in the property securing the
Receivables, provided that, if not done as of the Closing Date, the Issuer will
cause, within ten days of the Closing Date, the filing of all appropriate
financing statements in the proper filing office in the appropriate
jurisdictions under applicable law in order to perfect the security interest in
the Receivables granted to the Indenture Trustee hereunder. All financing
statements filed or to be filed by the Issuer in favor of the Indenture Trustee
in connection herewith that describes the Collateral contain a statement to the
following effect:

                                       28
<PAGE>

            (A purchase or taking of a security interest in any collateral
            described in this financing statement except as permitted by the
            Indenture will violate the rights of the Indenture Trustee).

            (c) No Impairment. The Issuer has not done anything to convey any
right to any Person that would result in such Person having a right to payments
due under the Receivables or otherwise to impair the rights of [the Insurer,]
the Indenture Trustee and the Noteholders in any Receivable or the proceeds
thereof. Other than the security interest granted to the Indenture Trustee
pursuant to this Indenture, the Issuer has not pledged, assigned, sold, granted
a security interest in, or otherwise conveyed any of the Receivables. 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
Receivables other than any financing statement relating to the security interest
granted to the Indenture Trustee hereunder or that has been terminated. The
Issuer is not aware of any judgment or tax lien filings against it.

            (d) The Receivables. The Receivables constitute "chattel paper"
within the meaning of the applicable UCC. Triad Financial Corporation, as the
Custodian under the Sale and Servicing Agreement, has in its possession all
original copies of the receivable files that constitute or evidence the
Receivables. The receivable files that constitute or evidence the Receivables do
not have any marks or notations indicating that they have been pledged, assigned
or conveyed by the Issuer to any person.

            (e) Good Title. Immediately prior to the pledge of the Receivables
to the Indenture Trustee pursuant to this Indenture, the Issuer was the sole
owner thereof and had good and indefeasible title thereto, free of any Lien and,
upon execution and delivery of the Basic Documents, the Trust shall have good
and indefeasible title to and will be the sole owner of such Receivables, free
of any Lien. No dealer or third-party lender has a participation in, or other
right to receive, proceeds of any Receivable. The Issuer has not taken any
action to convey any right to any Person that would result in such Person having
a right to payments received under the related Insurance Policies, Auto Loan
Purchase and Sale Agreements, Dealer Assignments or Third-Party Lender
Assignments or to payments due under such Receivables.

                                   ARTICLE IV

                           Satisfaction and Discharge

            SECTION 4.1 Satisfaction and Discharge of Indenture. This Indenture
will 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 3.3, 3.4, 3.5, 3.8,
3.10, 3.12, 3.13, 3.20, 3.21 and 3.22, (v) the rights, obligations and
immunities of the Indenture Trustee hereunder (including the rights of the
Indenture Trustee under Section 6.7 and the obligations of the Indenture Trustee
under Section 4.2) and (vi) the rights of Noteholders as beneficiaries hereof
with respect to the property so deposited with the Indenture Trustee payable to
all or any of them, and the Indenture Trustee, on demand of and at the expense
of the Issuer, will execute proper instruments acknowledging satisfaction and
discharge of this Indenture with respect to the Notes, when

                                       29
<PAGE>

                  (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 2.5 and (ii) Notes
            for whose payment money has theretofore been deposited in trust or
            segregated and held in trust by the Indenture Trustee and thereafter
            repaid to the Issuer or discharged from such trust, as provided in
            Section 3.3) have been delivered to the Indenture Trustee for
            cancellation [and the Note 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 their respective Final
            Scheduled Distribution Dates within one year, or

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

            and the Issuer, in the case of (i), (ii) or (iii) 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 of America (which will mature prior
            to the date such amounts are payable), in trust for such purpose, in
            an amount sufficient to pay and discharge the entire indebtedness on
            such Notes not theretofore delivered to the Indenture Trustee for
            cancellation when due to their respective Final Scheduled
            Distribution Dates or Redemption Date (if Notes have been called for
            redemption pursuant to Section 10.1(a)), as the case may be;

                  (B) the Issuer has paid or caused to be paid [all Insurer
            Issuer Secured Obligations and] all Indenture Trustee Issuer Secured
            Obligations; 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 [or the Insurer (so long
            as no Insurer Default has occurred and is continuing)] an
            Independent Certificate from a firm of certified public accountants,
            each meeting the applicable requirements of Section 11.1(a) and each
            stating that all conditions precedent herein provided for relating
            to the satisfaction and discharge of this Indenture have been
            complied with.

            SECTION 4.2 Application of Trust Money. All moneys deposited with
the Indenture Trustee pursuant to Section 4.1 will be held in trust and applied
by it, in accordance with the provisions of the Notes and the Basic Documents,
to the payment, either directly or through any Note Paying Agent, as the
Indenture Trustee may determine, to the

                                       30
<PAGE>

Holders of the particular Notes for the payment or redemption of which such
moneys have been deposited with the Indenture Trustee, of all sums due and to
become due thereon for principal and interest; but such moneys need not be
segregated from other funds except to the extent required herein or in the Sale
and Servicing Agreement or required by law.

            SECTION 4.3 Repayment of Moneys Held by Note Paying Agent. In
connection with the satisfaction and discharge of this Indenture with respect to
the Notes, all moneys then held by any Note Paying Agent other than the
Indenture Trustee under the provisions of this Indenture with respect to such
Notes will, upon demand of the Issuer, be paid to the Indenture Trustee to be
held and applied according to Section 3.3 and thereupon such Note Paying Agent
will be released from all further liability with respect to such moneys.

                                   ARTICLE V

                                    Remedies

            SECTION 5.1 Events of Default. "Event of Default" means any one of
the following events (whatever the reason for such Event of Default and whether
it is voluntary or involuntary or effected by operation of law or pursuant to
any judgment, decree or order of any court or any order, rule or regulation of
any administrative or governmental body):

            (i) default by the Issuer in the payment of any interest on any Note
      when the same becomes due and payable, and such default continues for a
      period of five days; or

            (ii) default by the Issuer in the payment of the principal of any
      Note on its Final Scheduled Distribution Date; or

            (iii) [if the Insurer is the Controlling Party, a Trigger Event (as
      defined under the Insurance Agreement) has occurred and is continuing; or]

            (iv) [a draw has been made on the Note Policy; or]

            (v) 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 Trust Estate 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 Trust Estate, or ordering the winding-up or
      liquidation of the Issuer's affairs, and such decree or order remains
      unstayed and in effect for a period of 60 consecutive days; or

            (vi) 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 Trust
      Estate, or the making by the Issuer of any general assignment for the
      benefit of creditors, or the failure by the Issuer generally to

                                       31
<PAGE>

      pay its debts as such debts become due, or the taking of action by the
      Issuer in furtherance of any of the foregoing; or

            (vii) the Issuer becoming taxable as an association or a publicly
      traded partnership taxable as a corporation for federal or state income
      tax purposes; or

            (viii) on any Distribution Date, after taking into account the
      application of the sum of Available Funds for the related calendar month
      plus any available amounts from the Spread Account for the related
      Distribution Date, any amounts listed in clauses (i) through (v) of
      Section 5.7(a) of the Sale and Servicing Agreement have not been paid in
      full; or

            (ix) default in the observance or performance in any material
      respect 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), or any representation or warranty of the Issuer made in this
      Indenture, in any Basic Document or in any certificate or any other
      writing delivered pursuant hereto or in connection herewith proving to
      have been incorrect in any material respect as of the time when the same
      has been made, and such default will continue or not be cured, or the
      circumstance or condition in respect of which such representation or
      warranty was incorrect will not have been eliminated or otherwise cured,
      for a period of 30 days (or for such longer period, not in excess of 90
      days, as may be reasonably necessary to remedy such default) after there
      has been given, by registered or certified mail, to the Issuer by the
      Indenture Trustee or to the Issuer and the Indenture Trustee by the
      Holders of at least 25% of the Outstanding Amount of the Notes, a written
      notice specifying such default or incorrect representation or warranty and
      requiring it to be remedied and stating that such notice is a "Notice of
      Default" hereunder.

            The Issuer will deliver to the Indenture Trustee [and the Insurer],
within five days after knowledge of the occurrence thereof, written notice in
the form of an Officer's Certificate of any event which with the giving of
notice and 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 5.2 Rights Upon Event of Default.

            (a) In the event of any acceleration of any Notes by operation of
this Section 5.2, [the Indenture Trustee will continue to be entitled to make
claims under the Note Policy pursuant to the Sale and Servicing Agreement for
Scheduled Payments on the Notes.] Payments under the Note Policy following
acceleration of any Notes] will be applied by the Indenture Trustee:

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

            SECOND: first, to the Class A-__ Noteholders for amounts due and
      unpaid for principal, then to Holders of the other Classes of Class A
      Notes for amounts due and

                                       32
<PAGE>

      unpaid on such Class A Notes for principal, ratably, without preference or
      priority of any kind, according to the amounts due and payable on such
      Class A Notes for principal.

            (b) [In the event any Notes are accelerated due to an Event of
Default, the Insurer has the right (in addition to its obligation to pay
Scheduled Payments on the Notes in accordance with the Note Policy), but not the
obligation, to make payments under the Note Policy or otherwise of interest and
principal due on such Notes, in whole or in part, on any date or dates following
such acceleration as the Insurer, in its sole discretion, will elect.]

            (c) If an Event of Default occurs and is continuing (other than
Events of Default specified in Section 5.1(v) and (vi)), the Indenture Trustee
[may, with consent of the Insurer (if the Insurer is the Controlling Party),
and] will, at the direction of the Controlling Party, declare by written notice
to the Issuer that the Notes become, whereupon they will become, immediately due
and payable at par, together with accrued interest thereon. If an Event of
Default specified in Section 5.1(v) or (vi) occurs, the Notes will automatically
become due and payable at par, together with interest thereon, without any
declaration or other act on the part of its Indenture Trustee, any Noteholder or
the Controlling Party.

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

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

                        (A) all payments of principal of and interest on all
                  Notes and all other amounts that would then be due hereunder
                  or upon such Notes if the Event of Default giving rise to such
                  acceleration had not occurred; and

                        (B) all sums paid or advanced by the Indenture Trustee
                  hereunder and the reasonable compensation, expenses,
                  disbursements and advances of the Indenture Trustee and its
                  agents and counsel; and

            (ii) all Events of Default, other than the nonpayment of the
      principal of the Notes that has become due solely by such acceleration,
      have been cured or waived as provided in Section 5.13.

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

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

            (a) The Issuer covenants that, notwithstanding any rights of any
other party herein to exercise any of its remedies as provided herein, if (i)
default is made in the payment of any interest on any Note when the same becomes
due and payable, and such default continues

                                       33
<PAGE>

for a period of five days, or (ii) default is made in the payment of the
principal of or any installment of the principal of any Note when the same
becomes due and payable, the Issuer will 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 will be legally enforceable,
upon overdue installments of interest, at the applicable Interest Rate and in
addition thereto such further amount as will be sufficient to cover the costs
and expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Indenture Trustee and its agents and counsel.

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

            (c) If an Event of Default occurs and is continuing, the Indenture
Trustee may with the consent of the Controlling Party and will, at the direction
of the Controlling Party, proceed to protect and enforce its rights and the
rights of the Noteholders by such appropriate Proceedings as the Indenture
Trustee or the Controlling Party will 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.

            (d) [Reserved].

            (e) In case there will be pending, relative to the Issuer or any
other obligor upon the Notes or any Person having or claiming an ownership
interest in the Trust Estate, 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 has 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 will then be due and payable as therein expressed or by
declaration or otherwise and irrespective of whether the Indenture Trustee has
made any demand pursuant to the provisions of this Section, will be entitled and
empowered, by intervention in such proceedings or otherwise to, and [may with
the Insurer's consent (so long as the Insurer is the Controlling Party), and]
will, at the direction of the Controlling Party:

                                       34
<PAGE>

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

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

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

            (iv) 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 Noteholders 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
will consent to the making of payments directly, to such Noteholders, to pay to
the Indenture Trustee such amounts as will be sufficient to cover reasonable
compensation to the Indenture Trustee, each predecessor Indenture Trustee and
their respective agents, attorneys and counsel, and all other expenses and
liabilities incurred, and all advances made, by the Indenture Trustee and each
predecessor Indenture Trustee except as a result of negligence or bad faith.

            (f) Nothing herein contained will 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.

            (g) 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 will be brought in its own name as Indenture
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 trustee and their respective agents and attorneys,
will be for the ratable benefit of the Holders of the Notes.

                                       35
<PAGE>

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

            SECTION 5.4 Remedies.

            (a) If an Event of Default has occurred and is continuing and the
Notes have been declared due and payable and such declaration and its
consequences have not been rescinded, the Indenture Trustee [may, with the
consent of the Insurer (so long as the Insurer is the Controlling Party) and]
will, at the direction of the Controlling Party, do one or more of the following
(subject to Section 5.5):

            (i) institute Proceedings in its own name and as 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 moneys adjudged due;

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

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

            (iv) sell the Trust Estate or any portion thereof or rights or
      interest therein, at one or more public or private sales called and
      conducted in any manner permitted by law; provided, however, that

                  (A) [if the Insurer is the Controlling Party, the Insurer may
            not direct the sale or other liquidation of the Trust Estate unless
            the proceeds of such sale or liquidation distributable to the
            Noteholders are sufficient to discharge in full all amounts then due
            and unpaid upon such Notes for principal and interest (except that,
            if the proceeds are not sufficient to discharge all amounts due the
            Class B Noteholders, and all of the Class B Noteholders have
            consented to such sale, then the Insurer may direct the sale or
            liquidation of the Trust Estate; or ]

                  (B) if the Indenture Trustee is the Controlling Party, the
            Indenture Trustee may not sell or otherwise liquidate the Trust
            Estate following an Event of Default unless either

                              (x) Noteholders representing not less than 100% of
                        the Outstanding Amount of the Notes consent thereto, or

                              (y) the proceeds of such sale or liquidation
                        distributable to the Noteholders are sufficient to
                        discharge in full all amounts then due and unpaid upon
                        such Notes for principal and interest, or

                                       36
<PAGE>

                              (z) the Indenture Trustee determines that the
                        Trust Estate will not continue to provide sufficient
                        funds for the payment of principal of and interest on
                        the Notes as they would have become due if the Notes had
                        not been declared due and payable, and the Indenture
                        Trustee provides prior written notice to the Rating
                        Agencies and obtains the consent of Holders of 66-2/3%
                        of the Outstanding Amount of the Notes.

            In determining such sufficiency or insufficiency with respect to
clause (y) and (z), the Indenture Trustee may, but need not, obtain and
conclusively rely upon an opinion of an Independent investment banking or
accounting firm of national reputation as to the feasibility of such proposed
action and as to the sufficiency of the Trust Estate for such purpose.

            SECTION 5.5 Optional Preservation of the Receivables. If the
Indenture Trustee is the Controlling Party and if the Notes have been declared
to be due and payable under Section 5.2 following an Event of Default and such
declaration and its consequences have not been rescinded and annulled, the
Indenture Trustee may but need not maintain possession of the Trust Estate. It
is the desire of the parties hereto and the Noteholders that there be at all
times sufficient funds for the payment of principal of and interest on the
Notes, and the Indenture Trustee will take such desire into account when
determining whether or not to maintain possession of the Trust Estate. In
determining whether to maintain possession of the Trust Estate, the Indenture
Trustee may, but need not, obtain and conclusively rely upon an opinion of an
Independent investment banking or accounting firm of national reputation as to
the feasibility of such proposed action and as to the sufficiency of the Trust
Estate for such purpose.

            SECTION 5.6 Priorities.

            (a) Following (1) the acceleration of the Notes pursuant to Section
5.2 or (2) the receipt of Insolvency Proceeds pursuant to Section 10.1(b) of the
Sale and Servicing Agreement, the Indenture Trustee will apply the following
amounts from (i) Available Funds on deposit in the Collection Account, including
any money or property collected pursuant to Section 5.4 of this Indenture and
any such Insolvency Proceeds, after the payment of all amounts owing to the
Indenture Trustee pursuant to Section 6.7 of this Indenture, and (ii) amounts on
deposit in the Spread Account on the related Distribution Date in the following
order of priority:

            FIRST: amounts due and owing and required to be distributed to the
      Servicer (provided there is no Servicer Termination Event), the Owner
      Trustee, the Indenture Trustee, and Backup Servicer, respectively,
      pursuant to priorities (i) and (ii) of Section 5.7(a) of the Sale and
      Servicing Agreement and not previously distributed, in the order of such
      priorities as set forth therein and without limitation, preference or
      priority of any kind within such priorities;

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

                                       37
<PAGE>

            THIRD: to Class B Noteholders for amounts due and unpaid on the
      Class B Notes for interest;

            FOURTH: to the Class A-__ Noteholders, for amounts due and unpaid on
      the Class A-__ Notes for principal, then, to the Holders of the other
      classes of Class A Notes, for amounts due and unpaid on such Class A Notes
      for principal, ratably, without preference or priority of any kind,
      according to the amounts due and payable on such Class A Notes for
      principal;

            FIFTH: [amounts due and owing and required to be distributed to the
      Insurer pursuant to priority (vi), (vii), and (x) of Section 5.7(a) of the
      Sale and Servicing Agreement and not previously distributed; and]

            SIXTH: to Class B Noteholders for amounts due and unpaid on the
      Class B Notes for principal; and

            SEVENTH: any remainder to the Holders of the Certificates.

            (b) The Indenture Trustee may fix a record date and payment date for
any payment to Noteholders pursuant to this Section 5.6. At least 15 days before
such record date the Issuer will 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 5.7 Limitation of Suits. No Holder of any Note has 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 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
      indemnity reasonably satisfactory to it 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;

            (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; and

            (vi) [the Insurer is not the Controlling Party;]

                                       38
<PAGE>

it being understood and intended that no one or more Noteholders has 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 Noteholders 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 receives conflicting or
inconsistent requests and indemnity from two or more groups of Noteholders, each
representing less than a majority of the Outstanding Amount of the Notes, the
Indenture Trustee will act at the direction of the group of Noteholders with the
greater Outstanding Amount of Notes, provided, however, that in the event the
Indenture Trustee receives conflicting or inconsistent requests and indemnity
from two or more groups of Noteholders representing an equal Outstanding Amount
of Notes, the Indenture Trustee in its sole discretion may determine what
action, if any, will be taken, notwithstanding any other provisions of this
Indenture.

            SECTION 5.8 Unconditional Rights of Noteholders To Receive Principal
and Interest. Notwithstanding any other provisions in this Indenture, the Holder
of any Note has the right, which is absolute and unconditional, to receive
payment of the principal of and interest, if any, 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, on or after the Redemption Date) and to institute suit
for the enforcement of any such payment, and such right will not be impaired
without the consent of such Holder.

            SECTION 5.9 Restoration of Rights and Remedies. If the Controlling
Party 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 or to such Noteholder, then and in every such case the Issuer, the
Indenture Trustee and the Noteholders will, 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 will 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 Controlling Party or to the Noteholders
is intended to be exclusive of any other right or remedy, and every right and
remedy will, 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, will not prevent the concurrent assertion or employment
of any other appropriate right or remedy.

            SECTION 5.11 Delay or Omission Not a Waiver. No delay or omission of
the Indenture Trustee, the Controlling Party or any Holder of any Note to
exercise any right or remedy accruing upon any Default or Event of Default will
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 V or by law to the Indenture Trustee or to the Noteholders may be
exercised from time to time, and as often as may be deemed expedient, by the
Indenture Trustee or by the Noteholders, as the case may be.

                                       39
<PAGE>

            SECTION 5.12 Control by Noteholders. If the Indenture Trustee is the
Controlling Party, the Majority Noteholders will 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 will 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
      Trust Estate is subject to the express terms of Section 5.4;

            (iii) if the conditions set forth in Section 5.5 have been satisfied
      and the Indenture Trustee elects to retain the Trust Estate pursuant to
      such Section, then any direction to the Indenture Trustee by Noteholders
      representing less than 100% of the Outstanding Amount of the Notes to sell
      or liquidate the Trust Estate will be of no force and effect; and

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

provided, however, that, subject to Article VI, the Indenture Trustee need not
take any action that it determines might involve it in liability, financial or
otherwise, without receiving indemnity satisfactory to it, or might materially
adversely affect the rights of any Noteholders not consenting to such action.

            SECTION 5.13 Waiver of Past Defaults. The [Insurer may, or if an
Insurer Default has occurred and is continuing, the] Majority Noteholders may,
prior to the declaration of the acceleration of the maturity of the Notes as
provided in Section 5.4, waive any past Default or Event of Default and its
consequences except a Default (a) in payment of principal of or interest on any
of the Notes or (b) in respect of a covenant or provision hereof which cannot be
modified or amended without the consent of the Holder of each Note. In the case
of any such waiver, the Issuer, the Indenture Trustee and the Holders of the
Notes will be restored to their former positions and rights hereunder,
respectively; but no such waiver will extend to any subsequent or other Default
or impair any right consequent thereto.

            Upon any such waiver, such Default will cease to exist and be deemed
to have been cured and not to have occurred, and any Event of Default arising
therefrom will be deemed to have been cured and not to have occurred, for every
purpose of this Indenture; but no such waiver will 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 will be
deemed to have agreed, that any court may in its discretion require, in any suit
for the enforcement of any right or remedy under this Indenture, or in any suit
against the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess

                                       40
<PAGE>

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 will not apply to (a) any suit instituted by the Indenture Trustee or
the Controlling Party, (b) 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 (c) 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 advantage of any such law, and covenants that it
will not hinder, delay or impede the execution of any power herein granted to
the Indenture Trustee, but will suffer and permit the execution of every such
power as though no such law had been enacted.

            SECTION 5.16 Action on Notes. The Indenture Trustee's right to seek
and recover judgment on the Notes or under this Indenture will 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 will be impaired by the
recovery of any judgment by the Indenture Trustee against the Issuer or by the
levy of any execution under such judgment upon any portion of the Trust Estate
or upon any of the assets of the Issuer.

            SECTION 5.17 Performance and Enforcement of Certain Obligations.

            (a) Promptly following a request from the Indenture Trustee to do so
and at the Servicer's expense, the Issuer agrees to take all such lawful action
as the Indenture Trustee may request to compel or secure the performance and
observance by the Servicer of its 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 institution of legal or administrative actions or
Proceedings to compel or secure performance by the Servicer of its obligations
under the Sale and Servicing Agreement.

            (b) If the Indenture Trustee is a Controlling Party and if an Event
of Default has occurred and is continuing, the Indenture Trustee may, and, at
the written direction of the Majority Noteholders will, subject to Article VI,
exercise all rights, remedies, powers, privileges and claims of the Issuer
against 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 Servicer of its 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 will be suspended.

                                       41
<PAGE>

                                   ARTICLE VI

                              The Indenture Trustee

            SECTION 6.1 Duties of Indenture Trustee.

            (a) If an Event of Default has occurred and is continuing, the
Indenture Trustee will exercise, subject to the provisions of Article V, the
rights and powers vested in it by the Basic Documents to which it is a Party and
use the same degree of care and skill in its exercise as a prudent person would
exercise or use under the circumstances in the conduct of such person's own
affairs.

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

            (i) the Indenture Trustee undertakes to perform such duties and only
      such duties as are specifically set forth in this Indenture and no implied
      covenants or obligations will 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 will
      examine the certificates and opinions to determine whether or not they
      conform on their face to the requirements of this Indenture.

            (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 6.1 (b);

            (ii) the Indenture Trustee will 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 will 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) The Indenture Trustee will not be liable for interest on any
money received by it except as the Indenture Trustee may agree in writing with
the Issuer.

            (e) 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.

            (f) No provision of this Indenture will 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 has reasonable grounds to believe

                                       42
<PAGE>

that repayment of such funds or indemnity reasonably satisfactory to it against
such risk or liability is not assured to it.

            (g) Every provision of this Indenture relating to the conduct or
affecting the liability of or affording protection to the Indenture Trustee will
be subject to the provisions of this Section 6.1 and to the provisions of the
TIA.

            (h) [The Indenture Trustee will, upon two Business Days' prior
notice to the Indenture Trustee, permit any representative of the Insurer at the
expense of the Trust, during the Indenture Trustee's normal business hours, to
examine all books of account, records, reports and other papers of the Indenture
Trustee relating to the Notes, to make copies and extracts therefrom and to
discuss the Indenture Trustee's affairs and actions, as such affairs and actions
relate to the Indenture Trustee's duties with respect to the Notes, with the
Indenture Trustee's officers and employees responsible for carrying out the
Indenture Trustee's duties with respect to the Notes.]

            (i) The Indenture Trustee will, and hereby agrees that it will,
perform all of the obligations and duties required of it under the Sale and
Servicing Agreement.

            (j) [The Indenture Trustee will, and hereby agrees that it will,
hold the Note Policy in trust, and will hold any proceeds of any claim on the
Note Policy in trust solely for the use and benefit of the Noteholders.]

            (k) Without limiting the generality of this Section 6.1, the
Indenture Trustee will have no duty (i) to see to any recording, filing or
depositing of this Indenture or any agreement referred to herein or any
financing statement evidencing a security interest in the Financed Vehicles, or
to see to the maintenance of any such recording or filing or depositing or to
any recording, refiling or redepositing of any thereof, (ii) to see to any
insurance of the Financed Vehicles or Obligors or to effect or maintain any such
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 Trust Estate, (iv) to
confirm or verify the contents of any reports or certificates delivered to the
Indenture Trustee pursuant to this Indenture or the Sale and Servicing Agreement
believed by the Indenture Trustee to be genuine and to have been signed or
presented by the proper party or parties, or (v) to inspect the Financed
Vehicles at any time or ascertain or inquire as to the performance of observance
of any of the Issuer's, the Depositor's or the Servicer's representations,
warranties or covenants or the Servicer's duties and obligations as Servicer and
as custodian of the Receivable Files under the Sale and Servicing Agreement.

            (l) In no event will [Indenture Trustee], in any of its capacities
hereunder, be deemed to have assumed any duties of the Owner Trustee under the
Delaware Statutory Trust Statute, common law, or the Trust Agreement.

            SECTION 6.2 Rights of Indenture Trustee.

            (a) The Indenture Trustee may conclusively rely on any report,
certificate, opinion, statement or other 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.

                                       43
<PAGE>

            (b) Before the Indenture Trustee acts or refrains from acting, it
may require an Officer's Certificate or an Opinion of Counsel. The Indenture
Trustee will 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.

            (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 will
not be responsible for any misconduct or negligence on the part of, or for the
supervision of, Triad Financial Corporation, or any other such agent, attorney,
custodian or nominee appointed with due care by it hereunder.

            (d) The Indenture Trustee will 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 will 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 will be under no obligation to institute,
conduct or defend any litigation under this Indenture or in relation to this
Indenture, at the request, order or direction of any of the Noteholders or the
Controlling Party, pursuant to the provisions of this Indenture, unless such
Noteholders or the Controlling Party has offered to the Indenture Trustee
reasonable security or indemnity against the costs, expenses and liabilities
that may be incurred therein or thereby; provided, however, that the Indenture
Trustee will, upon the occurrence of an Event of Default (that has not been
cured), exercise the rights and powers vested in it by this Indenture, subject
to Article V, with reasonable care and skill.

            (g) The Indenture Trustee will not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, consent, order,
approval, bond or other paper or document, unless requested in writing to do so
[by the Insurer (so long as no Insurer Default has occurred and is continuing)
or (if an Insurer Default has occurred and is continuing)] by the Noteholders
evidencing not less than 25% of the Outstanding Amount thereof; provided,
however, that if the payment within a reasonable time to the Indenture Trustee
of the costs, expenses or liabilities likely to be incurred by it in the making
of such investigation is, in the opinion of the Indenture Trustee, not
reasonably assured to the Indenture Trustee by the security afforded to it by
the terms of this Indenture or the Sale and Servicing Agreement, the Indenture
Trustee may require reasonable indemnity against such cost, expense or liability
as a condition to so proceeding; the reasonable expense of every such
examination will be paid by the Person making such request, or, if paid by the
Indenture Trustee, will be reimbursed by the Person making such request upon
demand.

            (h) The Indenture Trustee will not be liable for any losses on
investments except for losses resulting from the failure of the Indenture
Trustee to make an investment in

                                       44
<PAGE>

accordance with instructions given in accordance hereunder. If the Indenture
Trustee acts as the Note Paying Agent or Note Registrar, the rights and
protections afforded to the Indenture Trustee will be afforded to the Note
Paying Agent and Note Registrar.

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

            (j) Anything in this Agreement to the contrary notwithstanding, in
no event will 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 and regardless of the form of action.

            SECTION 6.3 Individual Rights of Indenture Trustee. The Indenture
Trustee in its individual or any other capacity may become the owner or pledgee
of Notes and may otherwise deal with the Issuer or its Affiliates with the same
rights it would have if it were not Indenture Trustee. Any Note Paying Agent,
Note Registrar, co-registrar or co-Note Paying Agent may do the same with like
rights. However, the Indenture Trustee must comply with Sections 6.11 and 6.12.

            SECTION 6.4 Indenture Trustee's Disclaimer. The Indenture Trustee
will not be responsible for and makes no representation as to the validity or
adequacy of this Indenture, the Trust Estate or the Notes, it will not be
accountable for the Issuer's use of the proceeds from the Notes, and it will not
be responsible for any statement of the Issuer in the 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 6.5 Notice of Defaults. If an Event of Default occurs and is
continuing and if it is either known by, or written notice of the existence
thereof has been delivered to, a Responsible Officer of the Indenture Trustee,
the Indenture Trustee will mail to each Noteholder [and the Insurer (unless an
Insurer Default has occurred and is continuing)] notice of the Default within 90
days after such knowledge or notice occurs. Except in the case of a Default in
payment of principal of or interest on any Note (including payments pursuant to
the mandatory redemption provisions of such Note), the Indenture Trustee may
withhold the notice if and so long as it in good faith determines that
withholding the notice is in the interests of Noteholders.

            SECTION 6.6 Reports by Indenture Trustee to Holders. The Indenture
Trustee will deliver to each Noteholder such information as may be reasonably
required to enable such Holder to prepare its federal and State income tax
returns.

            SECTION 6.7 Compensation and Indemnity.

            (a) Pursuant to Section 5.7(a) of the Sale and Servicing Agreement,
the Issuer will, or will cause the Servicer to, pay to the Indenture Trustee and
the Backup Servicer from

                                       45
<PAGE>

time to time compensation for its services as per a separate fee schedule. The
Indenture Trustee's compensation will not be limited by any law on compensation
of a trustee of an express trust. The Issuer will, or will cause the Servicer
to, reimburse the Indenture Trustee and the Backup Servicer 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 will include the
reasonable compensation and expenses, disbursements and advances of the
Indenture Trustee's and the Backup Servicer's agents, counsel, accountants and
experts. The Issuer will, or will cause the Servicer to, indemnify the Indenture
Trustee and the Backup Servicer and their respective officers, directors,
employees and agents against any and all loss, liability or expense (including
attorneys' fees and expenses) incurred by each of them in connection with the
acceptance or the administration of this Trust and the performance of its duties
hereunder. The Indenture Trustee or the Backup Servicer will notify the Issuer
and the Servicer promptly of any claim for which it may seek indemnity. Failure
by the Indenture Trustee or the Backup Servicer to so notify the Issuer and the
Servicer will not relieve the Issuer of its obligations hereunder or the
Servicer of its obligations under Section 8.2 and Article XI of the Sale and
Servicing Agreement. The Issuer will, or will cause the Servicer to, defend the
claim, and if failure to provide separate counsel will result in a conflict of
interest, the Indenture Trustee or the Backup Servicer may have separate counsel
and the Issuer will cause the Servicer to pay the fees and expenses of such
counsel. Neither the Issuer nor the Servicer need reimburse any expense or
indemnify against any loss, liability or expense incurred by the Indenture
Trustee or the Backup Servicer through the Indenture Trustee's or the Backup
Servicer's own willful misconduct, negligence or bad faith.

            (b) The Issuer's payment obligations to the Indenture Trustee and
the Backup Servicer pursuant to this Section 6.7 will survive the discharge of
this Indenture or the respective earlier resignation or removal of the Indenture
Trustee or the Backup Servicer. When the Indenture Trustee or the Backup
Servicer incurs expenses after the occurrence of a Default specified in Section
5.1(v) or (vi) with respect to the Issuer, the expenses are intended to
constitute expenses of administration under Title 11 of the United States Code
or any other applicable federal or State bankruptcy, insolvency or similar law.
Notwithstanding anything else set forth in the Basic Documents, the Indenture
Trustee agrees that the obligations of the Issuer (but not the Servicer) to the
Indenture Trustee under the Basic Documents will be recourse to the Trust Estate
only and specifically will not be recourse to the assets of the
Certificateholder or any Noteholder. In addition, the Indenture Trustee agrees
that its recourse to the Issuer, the Trust Estate, the Depositor and amounts
held in the Spread Account will be limited to the right to receive the
distributions referred to in Section 5.7(a) of the Sale and Servicing Agreement
and Section 5.6 hereof.

            SECTION 6.8 Replacement of Indenture Trustee. The Indenture Trustee
may resign at any time by so notifying the Issuer [and the Insurer]. The Issuer
may, with the consent of the Controlling Party, and will at the request of the
Controlling Party, remove the Indenture Trustee, 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

                                       46
<PAGE>

      bankruptcy laws, as now or hereafter constituted, or any other applicable
      federal or State bankruptcy, insolvency or other similar law, has entered
      a decree or order granting relief or appointing a receiver, liquidator,
      assignee, custodian, trustee, conservator, sequestrator (or similar
      official) for the Indenture Trustee or for any substantial part of the
      Indenture Trustee's property, or ordering the winding-up or liquidation of
      the Indenture Trustee's affairs;

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

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

            (v) 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 will promptly appoint a successor Indenture Trustee [acceptable to the
Insurer (so long as no Insurer Default has occurred and is continuing). If the
Issuer fails to appoint such a successor Indenture Trustee, the Insurer may
appoint a successor Indenture Trustee.]

            A successor Indenture Trustee will deliver a written acceptance of
its appointment to the retiring Indenture Trustee, [the Insurer (provided that
no Insurer Default has occurred and is continuing)] and to the Issuer. Thereupon
the resignation or removal of the retiring Indenture Trustee will become
effective, subject to satisfaction of the Rating Agency Condition and the
successor Indenture Trustee will have all the rights, powers and duties of the
retiring Indenture Trustee under this Indenture. The successor Indenture Trustee
will mail a notice of its succession to Noteholders. The retiring Indenture
Trustee, at the expense of the Trust, will 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 60 days
after the retiring Indenture Trustee resigns or is removed (notwithstanding that
such resignation or removal is not effective), the retiring Indenture Trustee,
the Issuer or the Holders of a majority in 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 [with the Insurer's consent (unless an Insurer Default exists)] may
petition any court of competent

                                       47
<PAGE>

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 any of the provisions of this
Section will not become effective until acceptance of appointment by the
successor Indenture Trustee pursuant to this Section 6.8 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 Issuer's and the Servicer's obligations under Section 6.7 will
continue for the benefit of the retiring Indenture Trustee.

            SECTION 6.9 Successor Indenture Trustee by Merger. If the Indenture
Trustee consolidates with, merges or converts into, or transfers all or
substantially all its corporate trust business or assets to, another corporation
or banking association, the resulting, surviving or transferee corporation
without any further act will be the successor Indenture Trustee; provided, that
the surviving corporation must satisfy the eligibility criteria set forth in
Section 6.11. The Indenture Trustee will provide the Rating Agencies prior
written notice of any such transaction.

            In case at the time such successor or successors by merger,
conversion or consolidation to the Indenture Trustee will succeed to the trusts
created by this Indenture any of the Notes will 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 will 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 will
have the full force which it is anywhere in the Notes or in this Indenture
provided that the certificate of the Indenture Trustee will have.

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

            (a) Notwithstanding any other provisions of this Indenture, at any
time, for the purpose of meeting any legal requirement of any jurisdiction in
which any part of the Trust Estate may at the time be located, the Indenture
Trustee [with the consent of the Insurer (so long as no Insurer Default has
occurred and is continuing)] will have the power and may execute and deliver all
instruments to appoint one or more Persons to act as a co-trustee or
co-trustees, or separate trustee or separate trustees, of all or any part of the
Trust Estate, and to vest in such Person or Persons, in such capacity and for
the benefit of the Noteholders, such title to the Trust Estate, 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 will be
required to meet the terms of eligibility as a successor trustee under Section
6.11 and no notice to Noteholders of the appointment of any co-trustee or
separate trustee will be required under Section 6.8 hereof.

                                       48
<PAGE>

            (b) Every separate trustee and co-trustee will, 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 will 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 will 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) will 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 will be personally liable by reason of any
      act or omission of any other trustee hereunder, including acts or
      omissions of predecessor or successor trustees; and

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

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

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

            (e) Any and all amounts relating to the fees and expenses of the
co-Indenture Trustee or separate Indenture Trustee will be borne by the Trust
Estate.

            SECTION 6.11 Eligibility: Disqualification. The Indenture Trustee
will at all times satisfy the requirements of TIA Section 310(a). The Indenture
Trustee will have a combined capital and surplus of at least $___________ as set
forth in its most recent published annual report of condition and it will have a
long term debt rating of BBB-, or an equivalent rating, or

                                       49
<PAGE>

better by the Rating Agencies. [The Indenture Trustee will provide copies of
such reports to the Insurer upon request.] The Indenture Trustee will comply
with TIA Section 310(b); provided, however, that there will 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.

            SECTION 6.12 Preferential Collection of Claims Against Issuer. The
Indenture Trustee will 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 will be subject to TIA Section 311(a) to the extent indicated.

            SECTION 6.13 Representations and Warranties of the Indenture
Trustee. The Indenture Trustee represents and warrants to the Issuer and to each
Issuer Secured Party as follows:

            (a) Due Organization. The Indenture Trustee is a _______________ and
is duly authorized and licensed under applicable law to conduct its business as
presently conducted.

            (b) Corporate Power. The Indenture Trustee has all requisite right,
power and authority to execute and deliver this Indenture and to perform all of
its duties as Indenture Trustee hereunder.

            (c) Due Authorization. The execution and delivery by the Indenture
Trustee of the Basic Documents to which it is a party, and the performance by
the Indenture Trustee of its duties hereunder and thereunder, have been duly
authorized by all necessary corporate proceedings and no further approvals or
filings, including any governmental approvals, are required for the valid
execution and delivery by the Indenture Trustee, or the performance by the
Indenture Trustee, of the Basic Documents.

            (d) Valid and Binding Indenture. The Indenture Trustee has duly
executed and delivered this Indenture and each other Basic Document to which it
is a party, and each of this Indenture and each such other Basic Document
constitutes the legal, valid and binding obligation of the Indenture Trustee,
enforceable against the Indenture Trustee in accordance with its terms, except
as (i) such enforceability may be limited by bankruptcy, insolvency,
reorganization and similar laws relating to or affecting the enforcement of
creditors' rights generally and (ii) the availability of equitable remedies may
be limited by equitable principles of general applicability.

            SECTION 6.14 Waiver of Setoffs. The Indenture Trustee hereby
expressly waives any and all rights of setoff that the Indenture Trustee may
otherwise at any time have under applicable law with respect to any Trust
Account and agrees that amounts in the Trust Accounts will at all times be held
and applied solely in accordance with the provisions hereof.

            SECTION 6.15 Control by the Controlling Party. The Indenture Trustee
will comply with notices and instructions given by the Issuer only if
accompanied by the written consent of the Controlling Party, except that if any
Event of Default has occurred and is continuing, the Indenture Trustee will act
upon and comply with notices and instructions given by the Controlling Party
alone in the place and stead of the Issuer.

                                       50
<PAGE>

                                  ARTICLE VII

                         Noteholders' Lists and Reports

            SECTION 7.1 Issuer To Furnish To Indenture Trustee Names and
Addresses of Noteholders. The Issuer will furnish or cause to be furnished to
the Indenture Trustee (a) not more than five days after each Record Date, a
list, in such form as the Indenture Trustee may reasonably require, of the names
and addresses of the Holders as of such Record Date, (b) at such other times as
the Indenture Trustee may request in writing, within 30 days after receipt by
the Issuer of any such request, a list of similar form and content as of a date
not more than 10 days prior to the time such list is furnished; provided,
however, that so long as the Indenture Trustee is the Note Registrar, no such
list will be required to be furnished. [The Indenture Trustee or, if the
Indenture Trustee is not the Note Registrar, the Issuer will furnish to the
Insurer in writing at such times as the Insurer may request a copy of the list.]

            SECTION 7.2 Preservation of Information; Communications to
Noteholders.

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

            (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 will
have the protection of TIA Section 312(c).

            SECTION 7.3 Reports by Issuer.

            (a) The Issuer will:

            (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 Section 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

                                       51
<PAGE>

            (iii) supply to the Indenture Trustee (and the Indenture Trustee
      will 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
      7.3(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 will end on December 31 of each year.

            SECTION 7.4 Reports by Indenture Trustee. If required by TIA Section
313(a), within 60 days after each May 31, beginning with May 31, 200_, the
Indenture Trustee will mail to 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 will comply with TIA Section 313(b).

            A copy of each report at the time of its mailing to Noteholders will
be filed by the Indenture Trustee with the Commission and each stock exchange,
if any, on which the Notes are listed. The Issuer will notify the Indenture
Trustee if and when the Notes are listed on any stock exchange.

                                  ARTICLE VIII

                      Accounts, Disbursements and Releases

            SECTION 8.1 Collection of Money. Except as otherwise expressly
provided herein, the Indenture Trustee may demand payment or delivery of, and
will 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 and the Sale and
Servicing Agreement. The Indenture Trustee will apply all such money received by
it as provided in this Indenture and the Sale and Servicing Agreement. Except as
otherwise expressly provided in this Indenture or in the Sale and Servicing
Agreement, if any default occurs in the making of any payment or performance
under any agreement or instrument that is part of the Trust Estate, 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 will 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 V.

            SECTION 8.2 Release of Trust Estate.

            (a) Subject to the payment of its fees and expenses and other
amounts pursuant to Section 6.7, the Indenture Trustee [may (with the Insurer's
consent, so long as the Insurer is the Controlling Party), and] will at the
Controlling Party's direction, execute instruments to release property from the
lien of this Indenture, in a manner and under circumstances that are not
inconsistent with the provisions of this Indenture. No party relying upon an
instrument executed by the Indenture Trustee as provided in this Article VIII
will be bound to ascertain the Indenture Trustee's authority, inquire into the
satisfaction of any conditions precedent or see to the application of any
moneys.

                                       52
<PAGE>

            (b) The Indenture Trustee will, at such time as there are no Notes
outstanding, all sums due the Indenture Trustee pursuant to Section 6.7 [and all
sums due the Insurer under the Insurance Agreement have been paid], release any
remaining portion of the Trust Estate 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 will
release property from the lien of this Indenture pursuant to this Section 8.2(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 11.1.

            SECTION 8.3 Opinion of Counsel. The Indenture Trustee will receive
at least seven days' notice when requested by the Issuer to take any action
pursuant to Section 8.2(a), accompanied by copies of any instruments involved,
and the Indenture Trustee may also require, as a condition to such action, an
Opinion of Counsel in form and substance satisfactory to 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 will not be required to express an opinion as to the fair
value of the Trust Estate. Counsel rendering any such opinion may rely, without
independent investigation, on the accuracy and validity of any certificate or
other instrument delivered to the Indenture Trustee in connection with any such
action.

                                   ARTICLE IX

                             Supplemental Indentures

            SECTION 9.1 Supplemental Indentures Without Consent of
Noteholders.(a) Without the consent of the Holders of any Notes but [with the
consent of the Insurer (unless an Insurer Default has occurred and is
continuing) and] with prior notice to the Rating Agencies by the Issuer, as
evidenced to the Indenture Trustee, the Issuer and the Indenture Trustee, when
authorized by an Issuer Order, at any time and from time to time, may enter into
one or more indentures supplemental hereto (which will conform to the provisions
of the Trust Indenture Act 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 of this Indenture, or to subject to the lien of
      this Indenture additional property;

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

                                       53
<PAGE>

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

            (v) to cure any ambiguity, to correct or supplement any provision
      herein or in any supplemental indenture which may be inconsistent with any
      other provision herein or in any supplemental indenture or to make any
      other provisions with respect to matters or questions arising under this
      Indenture or in any supplemental indenture;

            (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 will be necessary to
      facilitate the administration of the trusts hereunder by more than one
      trustee, pursuant to the requirements of Article VI; or

            (vii) to modify, eliminate or add to the provisions of this
      Indenture to such extent as will 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 be expressly required by the TIA.

            (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 (unless an Insurer Default has occurred and
is continuing) and] with prior notice to the Rating Agencies by the Issuer,
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 [or the Insurer].

            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.

            SECTION 9.2 Supplemental Indentures with Consent of Noteholders. The
Issuer and the Indenture Trustee, when authorized by an Issuer Order, also may,
with prior notice to the Rating Agencies, [with the consent of the Insurer
(unless an Insurer Default has occurred and is continuing) and] with the consent
of the Majority Noteholders, 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, if an Insurer Default has occurred and is continuing, such
supplemental indenture will not materially and adversely affect the interests of
the Insurer;] provided further, [that subject to the express rights of the
Insurer under the Basic Documents,] no such supplemental indenture will, without
the consent of the Holder of each Outstanding Note affected thereby:

            (i) 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

                                       54
<PAGE>

      Redemption Price with respect thereto, change the provision of this
      Indenture relating to the application of collections on, or the proceeds
      of the sale of, the Trust Estate to payment of principal of or interest on
      the Notes, or change any place of payment where, or the coin or currency
      in which, any Note or the interest thereon is payable;

            (ii) 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 V, 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);

            (iii) 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;

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

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

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

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

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

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

            It will not be necessary for any Act of Noteholders under this
Section 9.2 to approve the particular form of any proposed supplemental
indenture, but it will be sufficient if such Act will approve the substance
thereof.

                                       55
<PAGE>

            Promptly after the execution by the Issuer and the Indenture Trustee
of any supplemental indenture pursuant to this Section 9.2, the Indenture
Trustee will 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, will not, however, in any way impair
or affect the validity of any such supplemental indenture.

            SECTION 9.3 Execution of Supplemental Indentures. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this Article IX or the amendments or modifications thereby of the
trusts created by this Indenture, the Indenture Trustee will be entitled to
receive, and will 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 will not be
obligated to, enter into any such supplemental indenture that affects the
Indenture Trustee's own rights, duties, liabilities or immunities under this
Indenture or otherwise.

            SECTION 9.4 Effect of Supplemental Indenture. Upon the execution of
any supplemental indenture pursuant to the provisions hereof, this Indenture
will 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 Indenture Trustee, the Issuer and the Holders of the Notes will 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 will be and be deemed to be part of the terms and
conditions of this Indenture for any and all purposes.

            SECTION 9.5 Conformity With Trust Indenture Act. Every amendment of
this Indenture and every supplemental indenture executed pursuant to this
Article IX will conform to the requirements of the Trust Indenture Act as then
in effect so long as this Indenture will then be qualified under the Trust
Indenture Act.

            SECTION 9.6 Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article IX may, and if required by the Indenture Trustee will,
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 will 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.

                                       56
<PAGE>

                                   ARTICLE X

                               Redemption of Notes

            SECTION 10.1 Redemption.

            (a) The Notes are subject to redemption in whole, but not in part,
at the direction of the Servicer pursuant to Section 10.1(a) of the Sale and
Servicing Agreement, on any Distribution Date on which the Servicer exercises
its option to purchase the Owner Trust Estate, other than the Trust Accounts
[(with the consent of the Insurer if such purchase would result in a claim on
the Note Policy or would result in any amount owing to the Insurer under the
Insurance Agreement remaining unpaid),] which Distribution Date shall be after
the last day of any Collection Period as of which the Pool Balance will be less
than or equal to 10% of the Original Pool Balance, for a purchase price equal to
the Redemption Price. The Servicer or the Issuer will furnish [the Insurer and]
the Rating Agencies notice of such redemption. If the Notes are to be redeemed
pursuant to this Section 10.1(a), the Servicer or the Issuer will furnish notice
of such election to the Indenture Trustee not later than 30 days prior to the
Redemption Date and the Issuer will deposit with the Indenture Trustee in the
Collection Account the Redemption Price of the Notes to be redeemed at least two
Business Days prior to the Redemption Date whereupon all such Notes will be due
and payable on the Redemption Date upon the furnishing of a notice complying
with Section 10.2 to each Holder of Notes.

            (b) In the event that the assets of the Trust are distributed
pursuant to Section 8.1 of the Trust Agreement, all amounts on deposit in the
Note Distribution Account will be paid to the Noteholders up to the Outstanding
Amount of the Notes and all accrued and unpaid interest thereon. If amounts are
to be paid to Noteholders pursuant to this Section 10.1(b), the Servicer or the
Issuer will, to the extent practicable, furnish notice of such event to the
Indenture Trustee not later than 45 days prior to the Redemption Date whereupon
all such amounts will be payable on the Redemption Date.

            SECTION 10.2 Form of Redemption Notice.

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

            All notices of redemption will state:

            (i) the Redemption Date;

            (ii) the Redemption Price;

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

            (iv) that interest on the Notes will cease to accrue on the
      Redemption Date.

                                       57
<PAGE>

            Notice of redemption of the Notes will 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 will not impair or
affect the validity of the redemption of any other Note.

            SECTION 10.3 Notes Payable on Redemption Date. The Notes to be
redeemed will, following notice of redemption as required by Section 10.2 (in
the case of redemption pursuant to Section 10.1(a)), on the Redemption Date
become due and payable at the Redemption Price and (unless the Issuer will
default in the payment of the Redemption Price) no interest will 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 11.1 Compliance Certificates and Opinions, etc. Upon any
application or request by the Issuer to the Indenture Trustee to take any action
under any provision of this Indenture, the Issuer will furnish to the Indenture
Trustee [and to the Insurer] (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) if requested by the Indenture
Trustee 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, except that, 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.

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

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

            (ii) a 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 Collateral or other property or
securities with the Indenture Trustee that is to be made the basis for the
release of any property or securities subject to the lien of this Indenture,
other than in connection with a release of any

                                       58
<PAGE>

Purchased Receivable or Liquidated Receivable, the Issuer will, in addition to
any obligation imposed in Section 11.1(a) or elsewhere in this Indenture,
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 deposit) to the Issuer of the Collateral
or other 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 will also deliver to the Indenture Trustee [and the
      Insurer] an Independent Certificate as to the same matters, if the fair
      value to the Issuer of the securities to be so deposited and of all other
      such securities made the basis of any such withdrawal or release since the
      commencement of the then-current fiscal year of the Issuer, as set forth
      in the certificates delivered pursuant to clause (i) above and this clause
      (ii), is 10% or more of the Outstanding Amount of the Notes, but such a
      certificate need not be furnished with respect to any securities so
      deposited, if the fair value thereof to the Issuer as set forth in the
      related Officer's Certificate is less than $25,000 or less than 1% of the
      Outstanding Amount of the Notes.

            (iii) Other than with respect to the release of any Purchased
      Receivables or Liquidated Receivables, whenever any property or securities
      are to be released from the lien of this Indenture, the Issuer will 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
      under 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 signer thereof as to the matters described in clause
      (iii) above, the Issuer will 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 other than
      Purchased Receivables and Liquidated Receivables, or securities released
      from the lien of this Indenture since the commencement of the then current
      calendar year, as set forth in the certificates required by clause (iii)
      above and this clause (iv), equals 10% or more of the Outstanding Amount
      of the Notes, but such certificate need not be furnished in the case of
      any release of property or securities if the fair value thereof as set
      forth in the related Officer's Certificate is less than $25,000 or less
      than 1% of the then Outstanding Amount of the Notes.

            (v) Notwithstanding Section 2.9 or any other provision of this
      Section 11.1(b), the Issuer may (A) collect, liquidate, sell or otherwise
      dispose of Receivables as and to the extent permitted or required by the
      Basic Documents and (B) make cash payments out of the Trust Accounts as
      and to the extent permitted or required by the Basic Documents.

            SECTION 11.2 Form of Documents Delivered to Indenture Trustee. In
any case where several matters are required to be certified by, or covered by an
opinion of, any

                                       59
<PAGE>

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

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

            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
will 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 will 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 will 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 11.3 Acts of Noteholders.

            (a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
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 will 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 will be sufficient for
any purpose of this Indenture and (subject to Section 6.1) conclusive in favor
of the Indenture Trustee and the Issuer, if made in the manner provided in this
Section 11.3.

                                       60
<PAGE>

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

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

            (d) Any request, demand, authorization, direction, notice, consent,
waiver or other action by the Holder of any Notes will 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 11.4 Notices, etc., to Indenture Trustee, Issuer and Rating
Agencies. All demands, notices and communications hereunder will be in writing
and will be deemed to have been duly given to the addressee if mailed, by
first-class registered mail, postage prepaid service, confirmed facsimile
transmission, or a nationally recognized express courier, as follows:

            If to the Indenture Trustee: [Indenture Trustee]
                                         ____________________________
                                         ____________________________
                                         Attention: __________________________

            If to the Issuer:            Triad Automobile Receivables Trust
                                         200_-_ in care of [Owner Trustee]
                                         ____________________________
                                         ____________________________
                                         ____________________________

            with a copy to:              Triad Financial Corporation
                                         7711 Center Avenue, Suite 100
                                         Huntington Beach, CA 92647
                                         Attention: Chief Financial Officer
                                         with a separate copy mailed to the
                                         attention of: General Counsel

The Issuer will promptly transmit any notice received by it from the Noteholders
to the Indenture Trustee.

            [If to the Insurer:          [Insurer]
                                         ____________________________
                                         ____________________________]

[In each case in which notice or other communication to the Insurer refers to an
Event of Default, a claim on the Note Policy or with respect to which failure on
the part of the Insurer to respond will be deemed to constitute consent or
acceptance, then a copy of such notice or other

                                       61
<PAGE>

communication should also be sent to the attention of the General Counsel
"URGENT MATERIAL ENCLOSED."]

         If to Moody's:             Moody's Investors Service, Inc.
                                    99 Church Street, 4th Floor
                                    New York, New York 10007
                                    Attention: ABS Monitoring Department

         If to Standard & Poor's:   Standard & Poor's
                                    A Division of The McGraw-Hill Companies,Inc.
                                    55 Water Street, 40th Floor
                                    New York, New York 10041
                                    Attention of Asset Backed Surveillance
                                    Department

         [If to Fitch Ratings:      Fitch Ratings
                                    One State Street Plaza
                                    New York, New York  10004
                                    Attention:  ABS Group]

or, as to each of the foregoing, at such other address as will be designated by
written notice to the other parties. Any such demand, notice or communication
hereunder will be deemed to have been received on the date delivered to or
received at the premises of the addressee as evidenced by the date noted on the
return receipt.

            SECTION 11.5 Notices to Noteholders; Waiver. Where this Indenture
provides for notice to Noteholders of any event, such notice will 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 will affect the sufficiency of such notice with
respect to other Noteholders, and any notice that is mailed in the manner here
in provided will 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 will be the equivalent of such
notice. Waivers of notice by Noteholders will be filed with the Indenture
Trustee but such filing will 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 will 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 will be satisfactory to the Indenture Trustee will be deemed to be a
sufficient giving of such notice.

                                       62
<PAGE>

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

            SECTION 11.6 [Reserved].

            SECTION 11.7 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 will 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 11.8 Effect of Headings and Table of Contents. The Article
and Section headings herein and the Table of Contents are for convenience only
and will not affect the construction hereof.

            SECTION 11.9 Successors and Assigns. All covenants and agreements in
this Indenture and the Notes by the Issuer will bind its successors and assigns,
whether so expressed or not. All agreements of the Indenture Trustee in this
Indenture will bind its successors.

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

            SECTION 11.11 Benefits of Indenture. [The Insurer and its successors
and assigns will be a third-party beneficiary to the provisions of this
Indenture, and will be entitled to rely upon and directly to enforce such
provisions of this Indenture so long as no Insurer Default has occurred and is
continuing.] Nothing in this Indenture or in the Notes, express or implied, will
give to any Person, other than the parties hereto and their successors
hereunder, [the Insurer, and] the Noteholders, and any other party secured
hereunder, and any other Person with an ownership interest in any part of the
Trust Estate, 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 (in which case the Indenture Trustee may exercise such right or
power hereunder), but not its duties and obligations under the Note Policy, upon
delivery of a written notice to the Indenture Trustee.]

            [In exercising any of its voting rights, rights to direct or consent
or any other rights as the Insurer under this Indenture or any other Basic
Document, subject to the terms and conditions of this Indenture, the Insurer
will not have any obligation or duty to any Person to consider or take into
account the interests of any Person and will not be liable to any Person for any
action taken by it or at its discretion or any failure by it to act or to direct
that any action be taken, without regard to whether such inaction or action
benefits or adversely affects any Noteholder, the Issuer or any other Person.]

                                       63
<PAGE>

            [Without limiting the generality of this Section 11.11, the Insurer,
so long as it is the Controlling Party, will be entitled to instruct the
Indenture Trustee, by delivery of a written direction in the form of a Removal
Direction (as defined in the Intercreditor Agreement, dated as of April 29,
2005, among Triad Financial Corporation, [Indenture Trustee], as Agent, and the
other parties thereto), to remove the Servicer in accordance with such direction
if the Insurer has terminated the Servicer pursuant to the terms of the Sale and
Servicing Agreement, and the Indenture Trustee will, upon receipt of such
Removal Direction from the Insurer, act in accordance with the instructions of
the Insurer and in accordance with the procedures as set forth in Section 1.3 of
the Intercreditor Agreement.]

            SECTION 11.12 Legal Holidays. In any case where the date on which
any payment is due will 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 an which nominally due, and no interest will
accrue for the period from and after any such nominal date.

            SECTION 11.13 Governing Law. THIS INDENTURE WILL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER WILL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

            SECTION 11.14 Counterparts. This Indenture may be executed in any
number of counterparts, each of which so executed will be deemed to be an
original, but all such counterparts will together constitute but one and the
same instrument.

            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. No recourse may be taken, directly
or indirectly, with respect to the obligations of the Issuer, the Depositor, the
Servicer, the Owner Trustee, the Backup Servicer or the Indenture Trustee on the
Notes or under this Indenture, any other Basic Document or any certificate or
other writing delivered in connection herewith or therewith, against (i) the
Depositor, the Servicer, the Indenture Trustee, the Backup Servicer or the Owner
Trustee (including in its individual capacity), (ii) any owner of a beneficial
interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer,
director, employee or agent of the Depositor, the Servicer, the Indenture
Trustee, the Backup Servicer or the Owner Trustee (including in its individual
capacity), any holder of a beneficial interest in the Issuer, the Depositor, the
Servicer, the Owner Trustee, the Backup Servicer or the Indenture Trustee or of
any successor or assign of the Depositor, the Servicer, the Indenture Trustee,
the Backup Servicer or the Owner Trustee in its individual capacity, except as
any such Person may have expressly agreed (it being understood that the
Indenture Trustee, the Backup Servicer and the

                                       64
<PAGE>

Owner Trustee have no such obligations in their individual capacity) and except
that any such partner, owner or beneficiary will 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 will be subject to, and
entitled to the benefits of, the terms and provisions of Article VI, VII and
VIII of the Trust Agreement.

            SECTION 11.17 Limitation of Liability of Owner Trustee.

            Notwithstanding anything contained herein to the contrary, this
Agreement has been executed by [Owner Trustee] not in its individual capacity
but solely in its capacity as Owner Trustee of the Issuer and in no event will
[Owner Trustee] in its individual capacity or, except as expressly provided in
the Trust Agreement, as Owner Trustee have any liability for the
representations, warranties, covenants, agreements or other obligations of the
Issuer hereunder or in any of the certificates, notices or agreements delivered
pursuant hereto, as to all of which recourse will be had solely to the assets of
the Issuer. For all purposes of this Agreement, in the performance of its duties
or obligations hereunder or in the performance of any duties or obligations of
the Issuer hereunder, the Owner Trustee will be subject to, and entitled to the
benefits of, the terms and provisions of Articles V, VI and VII of the Trust
Agreement.

            SECTION 11.18 No Petition. The Indenture Trustee, by entering into
this Indenture, and each Noteholder, by accepting a Note, hereby covenant and
agree that they will not at any time institute against the Depositor or the
Issuer, or join in any institution against the Depositor 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, any of the
Basic Documents.

            SECTION 11.19 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.

            SECTION 11.20 Nonpublic Personal Information

            In the course of carrying out their duties under this Indenture, the
Indenture Trustee and the Issuer shall develop or receive certain information
regarding the "consumers" and "customers" of the Servicer, including but not
limited to "nonpublic personal information," (as those terms are defined in
Title V of the Gramm-Leach-Bliley Act and the privacy regulations adopted
thereunder). Notwithstanding any other provision of this Indenture, with respect
to nonpublic personal information about the customers and consumers of the
Servicer, each of the Indenture Trustee and the Issuer agrees as follows: (i)
except as may be reasonably necessary in the ordinary course of business to
carry out the activities to be performed by the Indenture Trustee or the Issuer
under this Indenture or as may be required by law or legal

                                       65
<PAGE>

process, it will not disclose any such nonpublic personal information to any
third party; (ii) it will not use any such nonpublic personal information other
than to carry out the purposes for which it was disclosed to the Indenture
Trustee or the Issuer, as applicable, unless such other use is expressly
permitted by a written agreement executed by the Servicer or required by law or
legal process; (iii) it shall restrict disclosure of the information solely to
those of its employees with a need to know and will advise employees who receive
the information of the obligation of confidentiality hereunder; and (iv) it will
take all reasonable measures, including without limitation such measures as it
takes to safeguard its own confidential information, to ensure the security and
confidentiality of all such nonpublic personal information, to protect against
anticipated threats or hazards to the security or integrity of such nonpublic
personal information and to protect against unauthorized access to or use of
such nonpublic personal information. The Servicer shall have access (during
normal business hours, upon reasonable prior notice) to review such books and
records of the Indenture Trustee and the Issuer as may be necessary to assess
compliance with the requirements of this Section 11.20. All costs and expenses
of such a review shall be borne solely by the Servicer, unless the results of
such review indicate a breach of this Section 11.20 by the Indenture Trustee or
the Issuer. The Indenture Trustee or the Issuer, as applicable, shall promptly
notify the Servicer if it receives any complaint or notice concerning a
violation of privacy rights or becomes aware of a breach of customer data
security. Upon termination of this Indenture, the Indenture Trustee and the
Issuer shall return or destroy all nonpublic personal information, without
retaining any copies of such documents and records

                                       66
<PAGE>

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

                                  TRIAD AUTOMOBILE RECEIVABLES TRUST 200_-_,

                                  By: [OWNER TRUSTEE], not in its individual
                                      capacity but solely as Owner Trustee of
                                      the Trust

                                  By: _________________________________________
                                      Name:
                                      Title:

                                  [INDENTURE TRUSTEE],
                                  not in its individual capacity but solely as
                                  Indenture Trustee

                                  By: _________________________________________
                                      Name:
                                      Title:

                                  [Indenture]
<PAGE>

                                                                     EXHIBIT A-1

REGISTERED                                                       $______________

No. RB-A-_

                       SEE REVERSE FOR CERTAIN DEFINITIONS

                                                        CUSIP NO. ______________

            Unless this Note is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Issuer or its
agent for registration of transfer, exchange or payment, and any Note issued is
registered in the name of Cede & Co. or in such other name as is requested by an
authorized representative of DTC (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest
herein.

            NO TRANSFER OF THIS NOTE WILL BE PERMITTED TO BE MADE TO ANY PERSON
UNLESS [THE INDENTURE TRUSTEE HAS RECEIVED A CERTIFICATE FROM SUCH TRANSFEROR TO
THE EFFECT THAT] [FOR DEFINITIVE NOTES] EITHER (I) THE TRANSFEREE IS NOT AND IS
NOT ACTING ON BEHALF OF OR INVESTING THE ASSETS OF (A) 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, (B) A "PLAN" (AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED (THE "CODE")) THAT IS SUBJECT TO SECTION 4975 OF THE
CODE OR (C) AN ENTITY WHOSE UNDERLYING ASSETS ARE DEEMED TO BE ASSETS OF A PLAN
DESCRIBED IN (A) OR (B) ABOVE BY REASON OF SUCH PLAN'S INVESTMENT IN THE ENTITY
(INCLUDING, WITHOUT LIMITATION, AN INSURANCE COMPANY GENERAL ACCOUNT) OR (II)
THE TRANSFEREE'S ACQUISITION AND CONTINUED HOLDING OF THIS NOTE WILL BE ELIGIBLE
FOR, AND SATISFY ALL REQUIREMENTS OF, A DEPARTMENT OF LABOR PROHIBITED
TRANSACTION CLASS EXEMPTION. [EACH TRANSFEREE OF A BENEFICIAL INTEREST IN THIS
NOTE WILL BE DEEMED TO HAVE MADE ONE OF THE FOREGOING REPRESENTATIONS.] [FOR
GLOBAL NOTES]

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

                                     A-1-1
<PAGE>

                    TRIAD AUTOMOBILE RECEIVABLES TRUST 200_-_

                       CLASS A-__ _____% ASSET BACKED NOTE

            Triad Automobile Receivables Trust 200_-_, a statutory trust
organized and existing under the laws of the State of Delaware (herein referred
to as the "Issuer"), for value received, hereby promises to pay to CEDE & CO.,
or registered assigns, the principal sum of _____________________ DOLLARS
payable on each Distribution Date in an amount equal to the result obtained by
multiplying (i) a fraction, the numerator of which is the initial principal
amount hereof and the denominator of which is the aggregate initial principal
amount of such Class A-__ Notes, by (ii) the aggregate amount, if any, payable
from the Note Distribution Account in respect of principal on the Class A-__
Notes pursuant to the Indenture; provided, however, that the entire unpaid
principal amount of this Note will be due and payable on ________, 200_ (the
"Final Scheduled Distribution Date"). The Issuer will pay interest on this Note
at the rate per annum shown above on each Distribution Date until the principal
of this Note is paid or made available for payment. Interest on this Note will
accrue for each Distribution Date from the most recent Distribution Date on
which interest has been paid to but excluding such Distribution Date or, if no
interest has yet been paid, from ________, 200_. Interest will be computed [on
the basis of a [360]-day year and the actual number of days in the related
Interest Period]. Such principal of and interest on this Note will be paid in
the manner specified on the reverse hereof.

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

            [The Class A Notes are entitled to the benefits of a financial
guaranty insurance policy (the "Note Policy") issued by [Insurer] (the
"Insurer"), pursuant to which the Insurer has unconditionally guaranteed
payments of Scheduled Payments with respect to each Distribution Date, all as
more fully set forth in the Note Policy, the Indenture and the Sale and
Servicing Agreement.]

            Reference is made to the further provisions of this Note set forth
on the reverse hereof, which will have the same effect as though fully set forth
on the face of this Note.

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

                                     A-1-2
<PAGE>

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

                               TRIAD AUTOMOBILE RECEIVABLES TRUST
                               200_-_

                               By: [OWNER TRUSTEE], not in its individual
                                   capacity but solely as Owner Trustee of the
                                   Trust

                               By: ___________________________________________
                                   Name:
                                   Title:

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Date: ______ ___, 200_         [INDENTURE TRUSTEE], not in its individual
                               capacity but solely as Indenture Trustee

                               By: ___________________________________________
                                   Authorized Officer

                                     A-1-3
<PAGE>

                                [REVERSE OF NOTE]

            This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class A-__ _____% Asset Backed Notes (herein called the "Class
A- Notes"), all issued under an Indenture dated as of ________, 200_ (such
indenture, as supplemented or amended, is herein called the "Indenture"),
between the Issuer and [Indenture Trustee], as Indenture Trustee (the "Indenture
Trustee," which term includes any successor Indenture Trustee under the
Indenture) to which the Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights and
obligations thereunder of the Issuer, the Indenture Trustee and the Holders of
the Notes. The Notes are subject to all terms of the Indenture. All terms used
in this Note that are defined in the Indenture, as supplemented or amended, will
have the meanings assigned to them in or pursuant to the Indenture, as so
supplemented or amended.

            The Class A-__ Notes, the Class A-__ Notes, the Class A-__ Notes,
the Class A-__ Notes and the Class B Notes (together, the "Notes") are and will
be secured by the collateral pledged as security therefor as provided in the
Indenture.

            Principal of the Class A-__ Notes will be payable on each
Distribution Date in an amount described on the face hereof. "Distribution Date"
means the 12th day of each month, or, if any such date is not a Business Day,
the next succeeding Business Day, commencing ________, 200_. The term
"Distribution Date," will be deemed to include the Final Scheduled Distribution
Date.

            As described above, the entire unpaid principal amount of this Note
will be due and payable on the earlier of the Final Scheduled Distribution Date
and the Redemption Date, if any, pursuant to the Indenture. As described above,
a portion of the unpaid principal balance of this Note will be due and payable
on each Distribution Date. Notwithstanding the foregoing, the entire unpaid
principal amount of the Notes will be due and payable on the date on which an
Event of Default has occurred and is continuing and the Indenture Trustee has
declared the Notes to be immediately due and payable or the Notes have
automatically become due and payable, in each case, in the manner provided in
the Indenture. All principal payments on the Class A-__ Notes will be made pro
rata to the Class A-__ Noteholders entitled thereto.

            Payments of interest and principal on this Note on each Distribution
Date will be made by check mailed to the Person whose name appears as the Holder
of this Note (or one or more Predecessor Notes) on the Note Register as of the
close of business on each Record Date or by wire transfer in immediately
available funds pursuant to the terms of the Indenture. Any reduction in the
principal amount of this Note (or any one or more Predecessor Notes) effected by
any payments made on any Distribution Date will be binding upon all future
Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. If
funds are expected to be available, as provided in the Indenture, for payment in
full of the then remaining unpaid principal amount of this Note on a
Distribution Date, then the Indenture Trustee, in the name of and on behalf of
the Issuer, will notify the Person who was the Holder hereof as of the Record
Date preceding such Distribution Date by notice mailed prior to such
Distribution Date and the amount then due and payable will be payable only upon
presentation and surrender of this Note at the Indenture Trustee's principal

                                     A-1-4
<PAGE>

Corporate Trust Office or at the office of the Indenture Trustee's agent
appointed for such purposes located in New York, New York.

            The Issuer will pay interest on overdue installments of interest at
the Class A-__ Interest Rate to the extent lawful.

            As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered on the Note Register
upon surrender of this Note for registration of transfer at the office or agency
designated by the Issuer pursuant to the Indenture, (i) duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee duly executed by, the Holder hereof or his attorney duly
authorized in writing, with such signature guaranteed by an "eligible guarantor
institution" meeting the requirements of the Note Registrar which requirements
include membership or participation in Securities Transfer Agents Medallion
Program ("STAMP") or such other "signature guarantee program" as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Exchange Act, and (ii) accompanied by such other
documents as the Indenture Trustee may require, and thereupon one or more new
Notes of authorized denominations and in the same aggregate principal amount
will be issued to the designated transferee or transferees. No service charge
will be charged for any registration of transfer or exchange of this Note, but
the transferor may be required to pay a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such registration
of transfer or exchange.

            Each Noteholder or Note Owner, by acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note covenants and agrees (i)
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 the Indenture or any certificate or other writing delivered in
connection therewith, against (a) the Depositor, the Servicer, the Indenture
Trustee or the Owner Trustee in its individual capacity, (b) any owner of a
beneficial interest in the Issuer or (c) any partner, owner, beneficiary, agent,
officer, director or employee of the Depositor, the Servicer, the Indenture
Trustee or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Depositor, the Servicer, the Owner
Trustee or the Indenture Trustee or of any successor or assign of the Depositor,
the Servicer, the Indenture Trustee or the Owner Trustee in its individual
capacity, except as any such Person may have expressly agreed (it being
understood that the Indenture Trustee and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner,
owner or beneficiary will 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, and (ii) to treat
the Notes as indebtedness for purposes of federal income, state and local income
and franchise and any other income taxes.

            Prior to the due presentment for registration of transfer of this
Note, the Issuer, the Indenture Trustee [and the Insurer] and any agent of the
Issuer, the Indenture Trustee [or the Insurer] may treat the Person in whose
name this Note (as of the day of determination or as of such other date as may
be specified in the Indenture) is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Issuer, the
Indenture Trustee, [the Insurer] nor any such agent will be affected by notice
to the contrary.

                                     A-1-5
<PAGE>

            The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer with the consent [of the Insurer and] of the Majority
Noteholders. The Indenture also contains provisions permitting the Noteholders
representing specified percentages of the Outstanding Amount of the Notes, on
behalf of the Holders of all the Notes, to waive compliance by the Issuer with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one of more Predecessor Notes) will be conclusive and binding
upon such Holder and upon all future Holders of this Note and of any Note issued
upon the registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Note. The
Indenture also permits the Indenture Trustee to amend or waive certain terms and
conditions set forth in the Indenture without the consent of Holders of the
Notes issued thereunder.

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

            The Issuer is permitted by the Indenture, under certain
circumstances, to merge or consolidate, subject to the rights of the Indenture
Trustee and the Noteholders under the Indenture.

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

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

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

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

                            [statement of insurance]

                                     A-1-6
<PAGE>

                                   ASSIGNMENT

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

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

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

Dated _________________________________(1)  _________________________________
                                            Signature Guaranteed:

_______________________________________     _________________________________

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

      (1) NOTE: The signature to this assignment must correspond with the name
of the registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatsoever.

                                     A-1-7
<PAGE>

                                                                     EXHIBIT A-2

REGISTERED                                                       $______________

No. RB-A-__-1

                       SEE REVERSE FOR CERTAIN DEFINITIONS

                                                        CUSIP NO. ______________

            Unless this Note is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Issuer or its
agent for registration of transfer, exchange or payment, and any Note issued is
registered in the name of Cede & Co. or in such other name as is requested by an
authorized representative of DTC (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest
herein.

            NO TRANSFER OF THIS NOTE WILL BE PERMITTED TO BE MADE TO ANY PERSON
UNLESS [THE INDENTURE TRUSTEE HAS RECEIVED A CERTIFICATE FROM SUCH TRANSFEROR TO
THE EFFECT THAT] [FOR DEFINITIVE NOTES] EITHER (I) THE TRANSFEREE IS NOT AND IS
NOT ACTING ON BEHALF OF OR INVESTING THE ASSETS OF (A) 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, (B) A "PLAN" (AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED (THE "CODE")) THAT IS SUBJECT TO SECTION 4975 OF THE
CODE OR (C) AN ENTITY WHOSE UNDERLYING ASSETS ARE DEEMED TO BE ASSETS OF A PLAN
DESCRIBED IN (A) OR (B) ABOVE BY REASON OF SUCH PLAN'S INVESTMENT IN THE ENTITY
(INCLUDING, WITHOUT LIMITATION, AN INSURANCE COMPANY GENERAL ACCOUNT) OR (II)
THE TRANSFEREE'S ACQUISITION AND CONTINUED HOLDING OF THIS NOTE WILL BE ELIGIBLE
FOR, AND SATISFY ALL REQUIREMENTS OF, A DEPARTMENT OF LABOR PROHIBITED
TRANSACTION CLASS EXEMPTION. [EACH TRANSFEREE OF A BENEFICIAL INTEREST IN THIS
NOTE WILL BE DEEMED TO HAVE MADE ONE OF THE FOREGOING REPRESENTATIONS.] [FOR
GLOBAL NOTES]

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

                                     A-2-1
<PAGE>

                    TRIAD AUTOMOBILE RECEIVABLES TRUST 200_-_

                       CLASS A-__ _____% ASSET BACKED NOTE

            Triad Automobile Receivables Trust 200_-_, a statutory trust
organized and existing under the laws of the State of Delaware (herein referred
to as the "Issuer"), for value received, hereby promises to pay to CEDE & CO.,
or registered assigns, the principal sum of ______________________ DOLLARS
payable on each Distribution Date in an amount equal to the result obtained by
multiplying (i) a fraction, the numerator of which is the initial principal
amount hereof and the denominator of which is the aggregate initial principal
amount of such Class A-__ Notes, by (ii) the aggregate amount, if any, payable
from the Note Distribution Account in respect of principal on the Class A-__
Notes pursuant to the Indenture; provided, however, that the entire unpaid
principal amount of this Note will be due and payable on ________, 200_ (the
"Final Scheduled Distribution Date"). The Issuer will pay interest on this Note
at the rate per annum shown above on each Distribution Date until the principal
of this Note is paid or made available for payment. Interest on this Note will
accrue for each Distribution Date from and including the twelfth day of the
prior calendar month (or in the case of the first Distribution Date, from and
including the Closing Date) to, but excluding, the twelfth day of the calendar
month in which such Distribution Date occurs. Interest will be computed [on the
basis of a [360]-day year consisting of twelve 30-day months]. Such principal of
and interest on this Note will be paid in the manner specified on the reverse
hereof.

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

            [The Class A Notes are entitled to the benefits of a financial
guaranty insurance policy (the "Note Policy") issued by [Insurer] (the
"Insurer"), pursuant to which the Insurer has unconditionally guaranteed
payments of the Scheduled Payments with respect to each Distribution Date, all
as more fully set forth in the Note Policy, the Indenture and the Sale and
Servicing Agreement.]

            Reference is made to the further provisions of this Note set forth
on the reverse hereof, which will have the same effect as though fully set forth
on the face of this Note.

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

                                     A-2-2
<PAGE>

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

                                TRIAD AUTOMOBILE RECEIVABLES TRUST 200_-_

                                By: [OWNER TRUSTEE], not in its individual
                                    capacity but solely as Owner Trustee of the
                                    Trust

                                By: ___________________________________________
                                    Name:
                                    Title:

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Date: ______ ___, 200_          [INDENTURE TRUSTEE], not in its individual
                                capacity but solely as Indenture Trustee

                                By: ___________________________________________
                                    Authorized Officer

                                     A-2-3
<PAGE>

                                [REVERSE OF NOTE]

            This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class A-__ _____% Asset Backed Notes (herein called the "Class
A- Notes"), all issued under an Indenture dated as of ________, 200_ (such
indenture, as supplemented or amended, is herein called the "Indenture"),
between the Issuer and [Indenture Trustee], as Indenture Trustee (the "Indenture
Trustee," which term includes any successor Indenture Trustee under the
Indenture) to which the Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights and
obligations thereunder of the Issuer, the Indenture Trustee and the Holders of
the Notes. The Notes are subject to all terms of the Indenture. All terms used
in this Note that are defined in the Indenture, as supplemented or amended, will
have the meanings assigned to them in or pursuant to the Indenture, as so
supplemented or amended.

            The Class A-__ Notes, the Class A-__ Notes, the Class A-__ Notes,
the Class A-__ Notes and the Class B Notes (together, the "Notes") are and will
be secured by the collateral pledged as security therefor as provided in the
Indenture.

            Principal of the Class A-__ Notes will be payable on each
Distribution Date in an amount described on the face hereof. "Distribution Date"
means the 12th day of each month, or, if any such date is not a Business Day,
the next succeeding Business Day, commencing ________, 200_. The term
"Distribution Date," will be deemed to include the Final Scheduled Distribution
Date.

            As described above, the entire unpaid principal amount of this Note
will be due and payable on the earlier of the Final Scheduled Distribution Date
and the Redemption Date, if any, pursuant to the Indenture. As described above,
a portion of the unpaid principal balance of this Note will be due and payable
on each Distribution Date. Notwithstanding the foregoing, the entire unpaid
principal amount of the Notes will be due and payable on the date on which an
Event of Default has occurred and is continuing and the Indenture Trustee has
declared the Notes to be immediately due and payable or the Notes have
automatically become due and payable, in each case, in the manner provided in
the Indenture. All principal payments on the Class A-__ Notes will be made pro
rata to the Class A-__ Noteholders entitled thereto.

            Payments of interest and principal on this Note on each Distribution
Date will be made by check mailed to the Person whose name appears as the Holder
of this Note (or one or more Predecessor Notes) on the Note Register as of the
close of business on each Record Date or by wire transfer in immediately
available funds pursuant to the terms of the Indenture. Any reduction in the
principal amount of this Note (or any one or more Predecessor Notes) effected by
any payments made on any Distribution Date will be binding upon all future
Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. If
funds are expected to be available, as provided in the Indenture, for payment in
full of the then remaining unpaid principal amount of this Note on a
Distribution Date, then the Indenture Trustee, in the name of and on behalf of
the Issuer, will notify the Person who was the Holder hereof as of the Record
Date preceding such Distribution Date by notice mailed prior to such
Distribution Date and the amount then due and payable will be payable only upon
presentation and surrender of this Note at the Indenture Trustee's principal

                                     A-2-4
<PAGE>

Corporate Trust Office or at the office of the Indenture Trustee's agent
appointed for such purposes located in New York, New York.

            The Issuer will pay interest on overdue installments of interest at
the Class A-__ Interest Rate to the extent lawful.

            As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered on the Note Register
upon surrender of this Note for registration of transfer at the office or agency
designated by the Issuer pursuant to the Indenture, (i) duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee duly executed by, the Holder hereof or his attorney duly
authorized in writing, with such signature guaranteed by an "eligible guarantor
institution" meeting the requirements of the Note Registrar which requirements
include membership or participation in Securities Transfer Agents Medallion
Program ("STAMP") or such other "signature guarantee program" as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Exchange Act, and (ii) accompanied by such other
documents as the Indenture Trustee may require, and thereupon one or more new
Notes of authorized denominations and in the same aggregate principal amount
will be issued to the designated transferee or transferees. No service charge
will be charged for any registration of transfer or exchange of this Note, but
the transferor may be required to pay a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such registration
of transfer or exchange.

            Each Noteholder or Note Owner, by acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note covenants and agrees (i)
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 the Indenture or any certificate or other writing delivered in
connection therewith, against (a) the Depositor, the Servicer, the Indenture
Trustee or the Owner Trustee in its individual capacity, (b) any owner of a
beneficial interest in the Issuer or (c) any partner, owner, beneficiary, agent,
officer, director or employee of the Depositor, the Servicer, the Indenture
Trustee or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Depositor, the Servicer, the Owner
Trustee or the Indenture Trustee or of any successor or assign of the Depositor,
the Servicer, the Indenture Trustee or the Owner Trustee in its individual
capacity, except as any such Person may have expressly agreed (it being
understood that the Indenture Trustee and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner,
owner or beneficiary will 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, and (ii) to treat
the Notes as indebtedness for purposes of federal income, state and local income
and franchise and any other income taxes.

            Prior to the due presentment for registration of transfer of this
Note, the Issuer, the Indenture Trustee [and the Insurer] and any agent of the
Issuer, the Indenture Trustee [or the Insurer] may treat the Person in whose
name this Note (as of the day of determination or as of such other date as may
be specified in the Indenture) is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Issuer, the
Indenture Trustee, [the Insurer] nor any such agent will be affected by notice
to the contrary.

                                     A-2-5
<PAGE>

            The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer with the consent [of the Insurer and] of the Majority
Noteholders. The Indenture also contains provisions permitting the Noteholders
representing specified percentages of the Outstanding Amount of the Notes, on
behalf of the Holders of all the Notes, to waive compliance by the Issuer with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one of more Predecessor Notes) will be conclusive and binding
upon such Holder and upon all future Holders of this Note and of any Note issued
upon the registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Note. The
Indenture also permits the Indenture Trustee to amend or waive certain terms and
conditions set forth in the Indenture without the consent of Holders of the
Notes issued thereunder.

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

            The Issuer is permitted by the Indenture, under certain
circumstances, to merge or consolidate, subject to the rights of the Indenture
Trustee and the Noteholders under the Indenture.

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

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

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

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

                            [statement of insurance]

                                     A-2-6
<PAGE>

                                   ASSIGNMENT

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

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

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

Dated _________________________________(1)   _________________________________
                                             Signature Guaranteed:

_______________________________________      _________________________________

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

      (1) NOTE: The signature to this assignment must correspond with the name
of the registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatsoever.

                                     A-2-7
<PAGE>

                                                                     EXHIBIT A-3

REGISTERED                                                       $______________

No. RB-A-__

                       SEE REVERSE FOR CERTAIN DEFINITIONS

                                                        CUSIP NO. ______________

            Unless this Note is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Issuer or its
agent for registration of transfer, exchange or payment, and any Note issued is
registered in the name of Cede & Co. or in such other name as is requested by an
authorized representative of DTC (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest
herein.

            NO TRANSFER OF THIS NOTE WILL BE PERMITTED TO BE MADE TO ANY PERSON
UNLESS [THE INDENTURE TRUSTEE HAS RECEIVED A CERTIFICATE FROM SUCH TRANSFEROR TO
THE EFFECT THAT] [FOR DEFINITIVE NOTES] EITHER (I) THE TRANSFEREE IS NOT AND IS
NOT ACTING ON BEHALF OF OR INVESTING THE ASSETS OF (A) 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, (B) A "PLAN" (AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED (THE "CODE")) THAT IS SUBJECT TO SECTION 4975 OF THE
CODE OR (C) AN ENTITY WHOSE UNDERLYING ASSETS ARE DEEMED TO BE ASSETS OF A PLAN
DESCRIBED IN (A) OR (B) ABOVE BY REASON OF SUCH PLAN'S INVESTMENT IN THE ENTITY
(INCLUDING, WITHOUT LIMITATION, AN INSURANCE COMPANY GENERAL ACCOUNT) OR (II)
THE TRANSFEREE'S ACQUISITION AND CONTINUED HOLDING OF THIS NOTE WILL BE ELIGIBLE
FOR, AND SATISFY ALL REQUIREMENTS OF, A DEPARTMENT OF LABOR PROHIBITED
TRANSACTION CLASS EXEMPTION. [EACH TRANSFEREE OF A BENEFICIAL INTEREST IN THIS
NOTE WILL BE DEEMED TO HAVE MADE ONE OF THE FOREGOING REPRESENTATIONS.] [FOR
GLOBAL NOTES]

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

                                     A-3-1
<PAGE>

                    TRIAD AUTOMOBILE RECEIVABLES TRUST 200_-_

                       CLASS A-__ _____% ASSET BACKED NOTE

            Triad Automobile Receivables Trust 200_-_, a Delaware statutory
trust organized and existing under the laws of the State of Delaware (herein
referred to as the "Issuer"), for value received, hereby promises to pay to CEDE
& CO., or registered assigns, the principal sum of ______________________
DOLLARS payable on each Distribution Date in an amount equal to the result
obtained by multiplying (i) a fraction, the numerator of which is the initial
principal amount hereof and the denominator of which is the aggregate initial
principal amount of such Class A-__ Notes, by (ii) the aggregate amount, if any,
payable from the Note Distribution Account in respect of principal on the Class
A-__ Notes pursuant to the Indenture; provided, however, that the entire unpaid
principal amount of this Note will be due and payable on ________, 20__ (the
"Final Scheduled Distribution Date"). The Issuer will pay interest on this Note
at the rate per annum shown above on each Distribution Date until the principal
of this Note is paid or made available for payment. Interest on this Note will
accrue for each Distribution Date from and including the twelfth day of the
prior calendar month (or in the case of the first Distribution Date, from and
including the Closing Date) to, but excluding, the twelfth day of the calendar
month in which such Distribution Date occurs. Interest will be computed on the
basis of a 360-day year consisting of twelve 30-day months. Such principal of
and interest on this Note will be paid in the manner specified on the reverse
hereof.

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

            [The Class A Notes are entitled to the benefits of a financial
guaranty insurance policy (the "Note Policy") issued by [Insurer] (the
"Insurer"), pursuant to which the Insurer has unconditionally guaranteed
payments of Scheduled Payments with respect to each Distribution Date, all as
more fully set forth in the Note Policy, the Indenture and the Sale and
Servicing Agreement.]

            Reference is made to the further provisions of this Note set forth
on the reverse hereof, which will have the same effect as though fully set forth
on the face of this Note.

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

                                     A-3-2
<PAGE>

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

                                 TRIAD AUTOMOBILE RECEIVABLES TRUST
                                 200_-_

                                 By: [OWNER TRUSTEE], not in its individual
                                     capacity but solely as Owner Trustee of the
                                     Trust

                                 By: ___________________________________________

                                     Name:

                                     Title:

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Date: _______ ___, 200_          [INDENTURE TRUSTEE], not in its individual
                                 capacity but solely as Indenture Trustee

                                 By: ___________________________________________

                                     Authorized Officer

<PAGE>

                                [REVERSE OF NOTE]

            This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class A-__ _____% Asset Backed Notes (herein called the "Class
A- Notes"), all issued under an Indenture dated as of ________, 200_ (such
indenture, as supplemented or amended, is herein called the "Indenture"),
between the Issuer and [Indenture Trustee], as Indenture Trustee (the "Indenture
Trustee," which term includes any successor Indenture Trustee under the
Indenture) to which the Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights and
obligations thereunder of the Issuer, the Indenture Trustee and the Holders of
the Notes. The Notes are subject to all terms of the Indenture. All terms used
in this Note that are defined in the Indenture, as supplemented or amended, will
have the meanings assigned to them in or pursuant to the Indenture, as so
supplemented or amended.

            The Class A-__ Notes, the Class A-__ Notes, the Class A-__ Notes,
the Class A-__ Notes and the Class B Notes (together, the "Notes") are and will
be secured by the collateral pledged as security therefor as provided in the
Indenture.

            Principal of the Class A-__ Notes will be payable on each
Distribution Date in an amount described on the face hereof. "Distribution Date"
means the 12th day of each month, or, if any such date is not a Business Day,
the next succeeding Business Day, commencing ________, 200_. The term
"Distribution Date," will be deemed to include the Final Scheduled Distribution
Date.

            As described above, the entire unpaid principal amount of this Note
will be due and payable on the earlier of the Final Scheduled Distribution Date
and the Redemption Date, if any, pursuant to the Indenture. As described above,
a portion of the unpaid principal balance of this Note will be due and payable
on each Distribution Date. Notwithstanding the foregoing, the entire unpaid
principal amount of the Notes will be due and payable on the date on which an
Event of Default has occurred and is continuing and the Indenture Trustee has
declared the Notes to be immediately due and payable or the Notes have
automatically become due and payable, in each case, in the manner provided in
the Indenture. All principal payments on the Class A-__ Notes will be made pro
rata to the Class A-__ Noteholders entitled thereto.

            Payments of interest and principal on this Note on each Distribution
Date will be made by check mailed to the Person whose name appears as the Holder
of this Note (or one or more Predecessor Notes) on the Note Register as of the
close of business on each Record Date or by wire transfer in immediately
available funds pursuant to the terms of the Indenture. Any reduction in the
principal amount of this Note (or any one or more Predecessor Notes) effected by
any payments made on any Distribution Date will be binding upon all future
Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. If
funds are expected to be available, as provided in the Indenture, for payment in
full of the then remaining unpaid principal amount of this Note on a
Distribution Date, then the Indenture Trustee, in the name of and on behalf of
the Issuer, will notify the Person who was the Holder hereof as of the Record
Date preceding such Distribution Date by notice mailed prior to such
Distribution Date and the amount then due and payable will be payable only upon
presentation and surrender of this Note at the Indenture Trustee's principal

<PAGE>

Corporate Trust Office or at the office of the Indenture Trustee's agent
appointed for such purposes located in New York, New York.

            The Issuer will pay interest on overdue installments of interest at
the Class A-__ Interest Rate to the extent lawful.

            As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note will be registered on the Note Register
upon surrender of this Note for registration of transfer at the office or agency
designated by the Issuer pursuant to the Indenture, (i) duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee duly executed by, the Holder hereof or his attorney duly
authorized in writing, with such signature guaranteed by an "eligible guarantor
institution" meeting the requirements of the Note Registrar which requirements
include membership or participation in Securities Transfer Agents Medallion
Program ("STAMP") or such other "signature guarantee program" as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Exchange Act, and (ii) accompanied by such other
documents as the Indenture Trustee may require, and thereupon one or more new
Notes of authorized denominations and in the same aggregate principal amount
will be issued to the designated transferee or transferees. No service charge
will be charged for any registration of transfer or exchange of this Note, but
the transferor may be required to pay a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such registration
of transfer or exchange.

            Each Noteholder or Note Owner, by acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note covenants and agrees (i)
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 the Indenture or any certificate or other writing delivered in
connection therewith, against (a) the Depositor, the Servicer, the Indenture
Trustee or the Owner Trustee in its individual capacity, (b) any owner of a
beneficial interest in the Issuer or (c) any partner, owner, beneficiary, agent,
officer, director or employee of the Depositor, the Servicer, the Indenture
Trustee or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Depositor, the Servicer, the Owner
Trustee or the Indenture Trustee or of any successor or assign of the Depositor,
the Servicer, the Indenture Trustee or the Owner Trustee in its individual
capacity, except as any such Person may have expressly agreed (it being
understood that the Indenture Trustee and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner,
owner or beneficiary will 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, and (ii) to treat
the Notes as indebtedness for purposes of federal income, state and local income
and franchise and any other income taxes.

            Prior to the due presentment for registration of transfer of this
Note, the Issuer, the Indenture Trustee [and the Insurer] and any agent of the
Issuer, the Indenture Trustee [or the Insurer] may treat the Person in whose
name this Note (as of the day of determination or as of such other date as may
be specified in the Indenture) is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Issuer, the
Indenture Trustee, [the Insurer] nor any such agent will be affected by notice
to the contrary.

                                     A-3-5
<PAGE>

            The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer with the consent [of the Insurer and] of the Majority
Noteholders. The Indenture also contains provisions permitting the Noteholders
representing specified percentages of the Outstanding Amount of the Notes, on
behalf of the Holders of all the Notes, to waive compliance by the Issuer with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one of more Predecessor Notes) will be conclusive and binding
upon such Holder and upon all future Holders of this Note and of any Note issued
upon the registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Note. The
Indenture also permits the Indenture Trustee to amend or waive certain terms and
conditions set forth in the Indenture without the consent of Holders of the
Notes issued thereunder.

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

            The Issuer is permitted by the Indenture, under certain
circumstances, to merge or consolidate, subject to the rights of the Indenture
Trustee and the Noteholders under the Indenture.

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

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

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

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

                            [statement of insurance]

                                     A-3-6
<PAGE>

                                   ASSIGNMENT

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

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

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

Dated ________________________________(1)       _______________________________

                                                Signature Guaranteed:

______________________________________          _______________________________

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

      (1) NOTE: The signature to this assignment must correspond with the name
of the registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatsoever.

                                     A-3-7
<PAGE>

                                                                     EXHIBIT A-4

REGISTERED                                                       $______________

No. RB-A-__

                       SEE REVERSE FOR CERTAIN DEFINITIONS

                                                        CUSIP NO. ______________

            Unless this Note is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Issuer or its
agent for registration of transfer, exchange or payment, and any Note issued is
registered in the name of Cede & Co. or in such other name as is requested by an
authorized representative of DTC (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest
herein.

            NO TRANSFER OF THIS NOTE WILL BE PERMITTED TO BE MADE TO ANY PERSON
UNLESS [THE INDENTURE TRUSTEE HAS RECEIVED A CERTIFICATE FROM SUCH TRANSFEROR TO
THE EFFECT THAT] [FOR DEFINITIVE NOTES] EITHER (I) THE TRANSFEREE IS NOT AND IS
NOT ACTING ON BEHALF OF OR INVESTING THE ASSETS OF (A) 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, (B) A "PLAN" (AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED (THE "CODE")) THAT IS SUBJECT TO SECTION 4975 OF THE
CODE OR (C) AN ENTITY WHOSE UNDERLYING ASSETS ARE DEEMED TO BE ASSETS OF A PLAN
DESCRIBED IN (A) OR (B) ABOVE BY REASON OF SUCH PLAN'S INVESTMENT IN THE ENTITY
(INCLUDING, WITHOUT LIMITATION, AN INSURANCE COMPANY GENERAL ACCOUNT) OR (II)
THE TRANSFEREE'S ACQUISITION AND CONTINUED HOLDING OF THIS NOTE WILL BE ELIGIBLE
FOR, AND SATISFY ALL REQUIREMENTS OF, A DEPARTMENT OF LABOR PROHIBITED
TRANSACTION CLASS EXEMPTION. [EACH TRANSFEREE OF A BENEFICIAL INTEREST IN THIS
NOTE WILL BE DEEMED TO HAVE MADE ONE OF THE FOREGOING REPRESENTATIONS.] [FOR
GLOBAL NOTES]

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

                                     A-4-1
<PAGE>

                    TRIAD AUTOMOBILE RECEIVABLES TRUST 200_-_

                       CLASS A-__ _____% ASSET BACKED NOTE

            Triad Automobile Receivables Trust 200_-_, a Delaware statutory
trust organized and existing under the laws of the State of Delaware (herein
referred to as the "Issuer"), for value received, hereby promises to pay to CEDE
& CO., or registered assigns, the principal sum of _______________________
DOLLARS payable on each Distribution Date in an amount equal to the result
obtained by multiplying (i) a fraction, the numerator of which is the initial
principal amount hereof and the denominator of which is the aggregate initial
principal amount of such Class A-__ Notes, by (ii) the aggregate amount, if any,
payable from the Note Distribution Account in respect of principal on the Class
A-__ Notes pursuant to the Indenture; provided, however, that the entire unpaid
principal amount of this Note will be due and payable on ________, 20__ (the
"Final Scheduled Distribution Date"). The Issuer will pay interest on this Note
at the rate per annum shown above on each Distribution Date until the principal
of this Note is paid or made available for payment. Interest on this Note will
accrue for each Distribution Date from and including the twelfth day of the
prior calendar month (or in the case of the first Distribution Date, from and
including the Closing Date) to, but excluding, the twelfth day of the calendar
month in which such Distribution Date occurs. Interest will be computed [on the
basis of a [360]-day year consisting of twelve 30-day months]. Such principal of
and interest on this Note will be paid in the manner specified on the reverse
hereof.

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

            [The Class A Notes are entitled to the benefits of a financial
guaranty insurance policy (the "Note Policy") issued by [Insurer] (the
"Insurer"), pursuant to which the Insurer has unconditionally guaranteed
payments of Scheduled Payments with respect to each Distribution Date, all as
more fully set forth in the Note Policy, the Indenture and the Sale and
Servicing Agreement.]

            Reference is made to the further provisions of this Note set forth
on the reverse hereof, which will have the same effect as though fully set forth
on the face of this Note.

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

                                     A-4-2
<PAGE>

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

                                TRIAD AUTOMOBILE RECEIVABLES TRUST
                                200_-_

                                By: [OWNER TRUSTEE], not in its individual
                                    capacity but solely as Owner Trustee of the
                                    Trust

                                By: ___________________________________________
                                    Name:
                                    Title:

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Date: ______ ___, 200_          [INDENTURE TRUSTEE], not in its individual
                                capacity but solely as Indenture Trustee

                                By: ___________________________________________
                                    Authorized Officer

<PAGE>

                                [REVERSE OF NOTE]

            This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class A-__ _____% Asset Backed Notes (herein called the "Class
A- Notes"), all issued under an Indenture dated as of ________, 200_ (such
indenture, as supplemented or amended, is herein called the "Indenture"),
between the Issuer and [Indenture Trustee], as Indenture Trustee (the "Indenture
Trustee," which term includes any successor Indenture Trustee under the
Indenture) to which the Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights and
obligations thereunder of the Issuer, the Indenture Trustee and the Holders of
the Notes. The Notes are subject to all terms of the Indenture. All terms used
in this Note that are defined in the Indenture, as supplemented or amended, will
have the meanings assigned to them in or pursuant to the Indenture, as so
supplemented or amended.

            The Class A-__ Notes, the Class A-__ Notes, the Class A-__ Notes,
the Class A-__ Notes and the Class B Notes (together, the "Notes") are and will
be secured by the collateral pledged as security therefor as provided in the
Indenture.

            Principal of the Class A-__ Notes will be payable on each
Distribution Date in an amount described on the face hereof. "Distribution Date"
means the 12th day of each month, or, if any such date is not a Business Day,
the next succeeding Business Day, commencing ________, 200_. The term
"Distribution Date," will be deemed to include the Final Scheduled Distribution
Date.

            As described above, the entire unpaid principal amount of this Note
will be due and payable on the earlier of the Final Scheduled Distribution Date
and the Redemption Date, if any, pursuant to the Indenture. As described above,
a portion of the unpaid principal balance of this Note will be due and payable
on each Distribution Date. Notwithstanding the foregoing, the entire unpaid
principal amount of the Notes will be due and payable on the date on which an
Event of Default has occurred and is continuing and the Indenture Trustee has
declared the Notes to be immediately due and payable or the Notes have
automatically become due and payable, in each case, in the manner provided in
the Indenture. All principal payments on the Class A-__ Notes will be made pro
rata to the Class A-__ Noteholders entitled thereto.

            Payments of interest and principal on this Note on each Distribution
Date will be made by check mailed to the Person whose name appears as the Holder
of this Note (or one or more Predecessor Notes) on the Note Register as of the
close of business on each Record Date or by wire transfer in immediately
available funds pursuant to the terms of the Indenture. Any reduction in the
principal amount of this Note (or any one or more Predecessor Notes) effected by
any payments made on any Distribution Date will be binding upon all future
Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. If
funds are expected to be available, as provided in the Indenture, for payment in
full of the then remaining unpaid principal amount of this Note on a
Distribution Date, then the Indenture Trustee, in the name of and on behalf of
the Issuer, will notify the Person who was the Holder hereof as of the Record
Date preceding such Distribution Date by notice mailed prior to such
Distribution Date and the amount then due and payable will be payable only upon
presentation and surrender of this Note at the Indenture Trustee's principal

<PAGE>

Corporate Trust Office or at the office of the Indenture Trustee's agent
appointed for such purposes located in New York, New York.

            The Issuer will pay interest on overdue installments of interest at
the Class A-__ Interest Rate to the extent lawful.

            As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered on the Note Register
upon surrender of this Note for registration of transfer at the office or agency
designated by the Issuer pursuant to the Indenture, (i) duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee duly executed by, the Holder hereof or his attorney duly
authorized in writing, with such signature guaranteed by an "eligible guarantor
institution" meeting the requirements of the Note Registrar which requirements
include membership or participation in Securities Transfer Agents Medallion
Program ("STAMP") or such other "signature guarantee program" as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Exchange Act, and (ii) accompanied by such other
documents as the Indenture Trustee may require, and thereupon one or more new
Notes of authorized denominations and in the same aggregate principal amount
will be issued to the designated transferee or transferees. No service charge
will be charged for any registration of transfer or exchange of this Note, but
the transferor may be required to pay a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such registration
of transfer or exchange.

            Each Noteholder or Note Owner, by acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note covenants and agrees (i)
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 the Indenture or any certificate or other writing delivered in
connection therewith, against (a) the Depositor, the Servicer, the Indenture
Trustee or the Owner Trustee in its individual capacity, (b) any owner of a
beneficial interest in the Issuer or (c) any partner, owner, beneficiary, agent,
officer, director or employee of the Depositor, the Servicer, the Indenture
Trustee or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Depositor, the Servicer, the Owner
Trustee or the Indenture Trustee or of any successor or assign of the Depositor,
the Servicer, the Indenture Trustee or the Owner Trustee in its individual
capacity, except as any such Person may have expressly agreed (it being
understood that the Indenture Trustee and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner,
owner or beneficiary will 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, and (ii) to treat
the Notes as indebtedness for purposes of federal income, state and local income
and franchise and any other income taxes.

            Prior to the due presentment for registration of transfer of this
Note, the Issuer, the Indenture Trustee [and the Insurer] and any agent of the
Issuer, the Indenture Trustee [or the Insurer] may treat the Person in whose
name this Note (as of the day of determination or as of such other date as may
be specified in the Indenture) is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Issuer, the
Indenture Trustee, [the Insurer] nor any such agent will be affected by notice
to the contrary.

                                     A-4-5
<PAGE>

            The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer with the consent [of the Insurer and] of the Majority
Noteholders. The Indenture also contains provisions permitting the Noteholders
representing specified percentages of the Outstanding Amount of the Notes, on
behalf of the Holders of all the Notes, to waive compliance by the Issuer with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one of more Predecessor Notes) will be conclusive and binding
upon such Holder and upon all future Holders of this Note and of any Note issued
upon the registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Note. The
Indenture also permits the Indenture Trustee to amend or waive certain terms and
conditions set forth in the Indenture without the consent of Holders of the
Notes issued thereunder.

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

            The Issuer is permitted by the Indenture, under certain
circumstances, to merge or consolidate, subject to the rights of the Indenture
Trustee and the Noteholders under the Indenture.

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

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

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

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

                            [statement of insurance]

                                     A-4-6
<PAGE>

                                   ASSIGNMENT

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

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

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

Dated ________________________________(1)    _________________________________
                                             Signature Guaranteed:

______________________________________       _________________________________

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

      (1) NOTE: The signature to this assignment must correspond with the name
of the registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatsoever.

                                     A-4-7
<PAGE>

                                                                       EXHIBIT B

REGISTERED                                                       $______________

No. RB-B

                       SEE REVERSE FOR CERTAIN DEFINITIONS

            THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE APPLICABLE
SECURITIES LAWS OF ANY STATE. ACCORDINGLY, TRANSFER OF THIS NOTE IS SUBJECT TO
CERTAIN RESTRICTIONS SET FORTH IN SECTION 2.4 OF THE INDENTURE. BY ITS
ACCEPTANCE OF THIS NOTE THE HOLDER OF THIS NOTE HAS REPRESENTED TO THE ISSUER
AND THE INDENTURE TRUSTEE THAT IT IS A "QUALIFIED INSTITUTIONAL BUYER" AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT AND IS ACQUIRING THIS NOTE FOR ITS
OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR
OTHERS (WHICH OTHERS ALSO ARE QUALIFIED INSTITUTIONAL BUYERS).

            NO SALE, PLEDGE OR OTHER TRANSFER OF THIS NOTE MAY BE MADE BY ANY
PERSON UNLESS (I) SUCH SALE, PLEDGE OR OTHER TRANSFER IS MADE PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND ANY APPLICABLE
STATE SECURITIES LAWS OR IS EXEMPT FROM THE REGISTRATION REQUIREMENTS UNDER THE
SECURITIES ACT AND SUCH STATE SECURITIES LAWS, (II) SO LONG AS THIS NOTE IS
ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, SUCH SALE,
PLEDGE OR OTHER TRANSFER IS MADE TO A PERSON WHO THE TRANSFEROR REASONABLY
BELIEVES AFTER DUE INQUIRY IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN
RULE 144A), ACTING FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS
A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QUALIFIED INSTITUTIONAL
BUYERS) TO WHOM NOTICE IS GIVEN THAT THE SALE, PLEDGE OR TRANSFER IS BEING MADE
IN RELIANCE ON RULE 144A, OR (III) SUCH SALE, PLEDGE OR OTHER TRANSFER IS
OTHERWISE MADE IN A TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, IN WHICH CASE (A) THE INDENTURE TRUSTEE WILL REQUIRE THAT BOTH
THE PROSPECTIVE TRANSFEROR AND THE PROSPECTIVE TRANSFEREE CERTIFY TO THE
INDENTURE TRUSTEE AND THE ISSUER IN WRITING THE FACTS SURROUNDING SUCH TRANSFER,
WHICH CERTIFICATION WILL BE IN FORM AND SUBSTANCE SATISFACTORY TO THE INDENTURE
TRUSTEE AND THE ISSUER, AND (B) THE INDENTURE TRUSTEE MAY REQUIRE A WRITTEN
OPINION OF COUNSEL (WHICH WILL NOT BE AT THE EXPENSE OF THE ISSUER OR THE
INDENTURE TRUSTEE) SATISFACTORY TO THE ISSUER AND THE INDENTURE TRUSTEE TO THE
EFFECT THAT SUCH TRANSFER WILL NOT VIOLATE THE SECURITIES ACT. NO SALE, PLEDGE
OR OTHER TRANSFER MAY BE MADE TO ANY ONE PERSON FOR NOTES WITH A FACE AMOUNT OF
LESS THAN $100,000 AND, IN THE CASE OF ANY PERSON ACTING ON

                                      B-1
<PAGE>

BEHALF OF ONE OR MORE THIRD PARTIES (OTHER THAN A BANK (AS DEFINED IN SECTION
3(A)(2) OF THE SECURITIES ACT) ACTING IN ITS FIDUCIARY CAPACITY), FOR NOTES WITH
A FACE AMOUNT OF LESS THAN $100,000, FOR EACH SUCH THIRD PARTY.

            NO TRANSFER OF THIS NOTE WILL BE PERMITTED TO BE MADE TO ANY PERSON
UNLESS THE INDENTURE TRUSTEE HAS RECEIVED A CERTIFICATE FROM SUCH TRANSFEROR TO
THE EFFECT THAT THE TRANSFEREE IS NOT AND IS NOT ACTING ON BEHALF OF OR
INVESTING THE ASSETS OF (A) 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, (B) A "PLAN"
(AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED (THE "CODE")) THAT IS SUBJECT TO SECTION 4975 OF THE CODE OR (C) AN
ENTITY WHOSE UNDERLYING ASSETS INCLUDE ASSETS OF A PLAN DESCRIBED IN (A) OR (B)
ABOVE BY REASON OF SUCH PLAN'S INVESTMENT IN THE ENTITY (INCLUDING, WITHOUT
LIMITATION, AN INSURANCE COMPANY GENERAL ACCOUNT). EACH TRANSFEREE OF A
BENEFICIAL INTEREST IN THIS NOTE WILL BE DEEMED TO HAVE MADE THE FOREGOING
REPRESENTATION.

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

            THE CLASS B NOTES ARE SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS
A NOTES, AS SET FORTH MORE FULLY IN THE INDENTURE AND THE SALE AND SERVICING
AGREEMENT.

                    TRIAD AUTOMOBILE RECEIVABLES TRUST 200_-_

                       CLASS B ________% ASSET BACKED NOTE

            Triad Automobile Receivables Trust 200_-_, a Delaware statutory
trust organized and existing under the laws of the State of Delaware (herein
referred to as the "Issuer"), for value received, hereby promises to pay to
[__________], or registered assigns, the principal sum of ___________________
DOLLARS payable on each Distribution Date in an amount equal to the result
obtained by multiplying (i) a fraction the numerator of which is the initial
principal amount hereof and the denominator of which is the aggregate initial
principal amount of such Class B Notes by (ii) the aggregate amount, if any,
payable from the Note Distribution Account in respect of principal on the Class
B Notes pursuant to the Indenture; provided, however, that the entire unpaid
principal amount of this Note will be due and payable on _____________, 20__
(the "Final Scheduled Distribution Date"). The Issuer will pay interest on this
Note at the rate per annum shown above on each Distribution Date until the
principal of this Note is paid or made available for payment. Interest on this
Note will accrue for each Distribution Date from and including the twelfth day
of the prior calendar month (or in the case of the first Distribution Date, from
and including the Closing Date) to, but excluding, the twelfth day of the
calendar month in

                                      B-2
<PAGE>

which such Distribution Date occurs. Interest will be computed [on the basis of
a [360]-day year consisting of twelve 30-day months]. Such principal of and
interest on this Note will be paid in the manner specified on the reverse
hereof.

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

            Reference is made to the further provisions of this Note set forth
on the reverse hereof, which will have the same effect as though fully set forth
on the face of this Note.

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

                                      B-3
<PAGE>

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

                                 TRIAD AUTOMOBILE RECEIVABLES TRUST
                                 200_-_

                                 By: [OWNER TRUSTEE], not in its individual
                                     capacity but solely as Owner Trustee of the
                                     Trust

                                 By: ___________________________________________
                                     Name:
                                     Title:

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Date: _______ __, 200_           [INDENTURE TRUSTEE], not in its individual
                                 capacity but solely as Indenture Trustee

                                 By: ___________________________________________
                                     Authorized Officer

                                      B-4
<PAGE>

                                [REVERSE OF NOTE]

            This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class B _____% Asset Backed Notes (herein called the "Class B
Notes"), all issued under an Indenture dated as of _________, 2005 (such
indenture, as supplemented or amended, is herein called the "Indenture"),
between the Issuer and [Indenture Trustee], as Indenture Trustee (the "Indenture
Trustee," which term includes any successor Indenture Trustee under the
Indenture) to which the Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights and
obligations thereunder of the Issuer, the Indenture Trustee and the Holders of
the Notes. The Notes are subject to all terms of the Indenture. All terms used
in this Note that are defined in the Indenture, as supplemented or amended, will
have the meanings assigned to them in or pursuant to the Indenture, as so
supplemented or amended.

            The Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the
Class A-4 Notes and the Class B Notes (together, the "Notes") are and will be
secured by the collateral pledged as security therefor as provided in the
Indenture.

            Principal of the Class B Notes will be payable on each Distribution
Date in an amount described on the face hereof. "Distribution Date" means the
12th day of each month, or, if any such date is not a Business Day, the next
succeeding Business Day, commencing _________, 200_. The term "Distribution
Date," will be deemed to include the Final Scheduled Distribution Date.

            As described above, the entire unpaid principal amount of this Note
will be due and payable on the earlier of the Final Scheduled Distribution Date
and the Redemption Date, if any, pursuant to the Indenture. As described above,
a portion of the unpaid principal balance of this Note will be due and payable
on each Distribution Date. Notwithstanding the foregoing, the entire unpaid
principal amount of the Notes will be due and payable on the date on which an
Event of Default has occurred and is continuing and the Indenture Trustee has
declared the Notes to be immediately due and payable or the Notes have
automatically become due and payable, in each case, in the manner provided in
the Indenture All principal payments on the Class B Notes will be made pro rata
to the Class B Noteholders entitled thereto.

            Payments of interest and principal on this Note on each Distribution
Date will be made by check mailed to the Person whose name appears as the Holder
of this Note (or one or more Predecessor Notes) on the Note Register as of the
close of business on each Record Date or by wire transfer in immediately
available funds pursuant to the terms of the Indenture. Any reduction in the
principal amount of this Note (or any one or more Predecessor Notes) effected by
any payments made on any Distribution Date will be binding upon all future
Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. If
funds are expected to be available, as provided in the Indenture, for payment in
full of the then remaining unpaid principal amount of this Note on a
Distribution Date, then the Indenture Trustee, in the name of and on behalf of
the Issuer, will notify the Person who was the Holder hereof as of the Record
Date preceding such Distribution Date by notice mailed prior to such
Distribution Date and the amount then due and payable will be payable only upon
presentation and surrender of this Note at the Indenture Trustee's principal

                                      B-5
<PAGE>

Corporate Trust Office or at the office of the Indenture Trustee's agent
appointed for such purposes located in New York, New York.

            The Issuer will pay interest on overdue installments of interest at
the Class B Interest Rate to the extent lawful.

            As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered on the Note Register
upon surrender of this Note for registration of transfer at the office or agency
designated by the Issuer pursuant to the Indenture, (i) duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee duly executed by, the Holder hereof or his attorney duly
authorized in writing, with such signature guaranteed by an "eligible guarantor
institution" meeting the requirements of the Note Registrar which requirements
include membership or participation in Securities Transfer Agents Medallion
Program ("STAMP") or such other "signature guarantee program" as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Exchange Act, and (ii) accompanied by such other
documents as the Indenture Trustee may require, and thereupon one or more new
Notes of authorized denominations and in the same aggregate principal amount
will be issued to the designated transferee or transferees. No service charge
will be charged for any registration of transfer or exchange of this Note, but
the transferor may be required to pay a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such registration
of transfer or exchange.

            Each Noteholder or Note Owner, by acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note covenants and agrees (i)
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 the Indenture or any certificate or other writing delivered in
connection therewith, against (a) the Depositor, the Servicer, the Indenture
Trustee or the Owner Trustee in its individual capacity, (b) any owner of a
beneficial interest in the Issuer or (c) any partner, owner, beneficiary, agent,
officer, director or employee of the Depositor, the Servicer, the Indenture
Trustee or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Depositor, the Servicer, the Owner
Trustee or the Indenture Trustee or of any successor or assign of the Depositor,
the Servicer, the Indenture Trustee or the Owner Trustee in its individual
capacity, except as any such Person may have expressly agreed (it being
understood that the Indenture Trustee and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner,
owner or beneficiary will 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, and (ii) to treat
the Notes as indebtedness for purposes of federal income, state and local income
and franchise and any other income taxes.

            Prior to the due presentment for registration of transfer of this
Note, the Issuer, the Indenture Trustee and the Insurer and any agent of the
Issuer, the Indenture Trustee or the Insurer may treat the Person in whose name
this Note (as of the day of determination or as of such other date as may be
specified in the Indenture) is registered as the owner hereof for all purposes,
whether or not this Note be overdue, and neither the Issuer, the Indenture
Trustee, the Insurer nor any such agent will be affected by notice to the
contrary.

                                      B-6
<PAGE>

            The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer with the consent of the Insurer and of the Majority
Noteholders. The Indenture also contains provisions permitting the Noteholders
representing specified percentages of the Outstanding Amount of the Notes, on
behalf of the Holders of all the Notes, to waive compliance by the Issuer with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one of more Predecessor Notes) will be conclusive and binding
upon such Holder and upon all future Holders of this Note and of any Note issued
upon the registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Note. The
Indenture also permits the Indenture Trustee to amend or waive certain terms and
conditions set forth in the Indenture without the consent of Holders of the
Notes issued thereunder.

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

            The Issuer is permitted by the Indenture, under certain
circumstances, to merge or consolidate, subject to the rights of the Indenture
Trustee and the Noteholders under the Indenture.

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

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

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

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

                                      B-7
<PAGE>

                                   ASSIGNMENT

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

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

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

Dated _________________________________(1)     ________________________________
                                               Signature Guaranteed:

_______________________________________        ________________________________

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

      (1) NOTE: The signature to this assignment must correspond with the name
of the registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatsoever.

                                      B-8
<PAGE>

                                                                       EXHIBIT C

                  [FORM OF CERTIFICATE AS TO INITIAL PURCHASE]

                                     [date]

Triad Automobile Receivables Trust 200_-_
c/o [Owner Trustee]

____________________________
____________________________
____________________________
Attention: _________________________

[Indenture Trustee]
____________________________
____________________________
Attention: _________________________
           Triad Auto Trust 200_-_

            Re:   Triad Automobile Receivables Trust 200_-_
                  Asset Backed Notes, Class B

            Dear Sirs:

            In connection with the proposed purchase by the buyer listed below
(the "Buyer") of the above-referenced Notes (the "Notes") issued pursuant to the
Indenture dated as of ________, 200_ (the "Indenture") between Triad Automobile
Receivables Trust 200_-_, as Issuer (the "Issuer"), and [Indenture Trustee], as
Indenture Trustee (the "Indenture Trustee"), relating to the Triad Automobile
Receivables Trust 200_-_ Asset Backed Notes, the Buyer advises you as follows:

                        (i)   it (a) has such knowledge and experience in
                              financial and business matters that it is capable
                              of evaluating the merits and risks of its
                              investment in the Notes and is able to bear the
                              economic risks of such investment; (b) is a
                              "qualified institutional buyer" as that term is
                              defined in Rule 144A under the Securities Act of
                              1933, as amended, and is acquiring beneficial
                              ownership of the Notes for its own account or for
                              the account of another "qualified institutional
                              buyer"; and (c) understands that the Issuer and
                              the Indenture Trustee are relying on such
                              representations in connection with the issuance of
                              the Notes;

                        (ii)  it has reviewed the Prospectus (including the
                              section captioned "Risk Factors" therein) and such
                              other materials and information with respect to
                              the Notes, the Issuer and Triad Financial
                              Corporation (the "Originator") as it deems
                              necessary

                                      C-1
<PAGE>

      and has been afforded the opportunity to make inquiry of the Issuer and
      the Originator and to receive answers, and has received all information
      requested;

(iii) it understands that the Notes have not been registered or qualified under
      the 1933 Act or the securities laws of any state;

(iv)  it has not distributed the Prospectus Supplement or any other materials
      relating to the Notes to anyone other than its counsel or other advisor,
      and no one other than such counsel or advisor has used its copies of such
      documents; and

(v)   it is not, and is not acting on behalf of or investing the assets of, (x)
      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, (y) a plan (as defined in
      Section 4975(e)(1) of the Internal Revenue Code of 1986, as amended (the
      "Code") that is subject to Section 4975 of the Code or (z) an entity whose
      underlying assets include assets of a plan described in (x) or (y) above
      by reason of such plan's investment in the entity (including, without
      limitation, an insurance company general account).

      Very truly yours,

      [BUYER]

      By: ____________________________________

      Name:

      Title:

                                      C-2
<PAGE>

                                                                       EXHIBIT D

       [FORM OF "QUALIFIED INSTITUTIONAL BUYER" TRANSFEREE'S CERTIFICATE]

                                     [date]

Triad Automobile Receivables Trust 200_-_
c/o [Owner Trustee]
____________________________
____________________________
____________________________
Attention: _________________________

[Indenture Trustee]
____________________________
____________________________
Attention: _________________________
           Triad Auto Trust 200_-_

            Re:   Triad Automobile Receivables Trust 200_-_
                  Asset Backed Notes, Class B

Dear Sirs:

            In connection with the proposed purchase by the buyer listed below
(the "Buyer") of the above-referenced Notes (the "Notes") issued pursuant to the
Indenture dated as of ________, 200_ (the "Indenture") between Triad Automobile
Receivables Trust 200_-_ (the "Issuer") and [Indenture Trustee], as Indenture
Trustee (the "Indenture Trustee"), relating to Triad Automobile Receivables
Trust 200_-_ Asset Backed Notes, the Buyer advises you that the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933, as amended (the "1933 Act") and is acquiring beneficial
ownership of the Notes for its own account or for the account of another
"qualified institutional buyer". In addition to the foregoing, you may rely on
the information provided in Annex 1 or 2, as applicable, attached hereto and
incorporated herein.

            The Buyer understands that the Notes have not been registered under
the 1933 Act or the securities laws of any state. The Buyer acknowledges that it
has independently conducted such investigation and evaluation of the merits and
the risks involved in an investment in the Notes and has received such
information (whether from the Issuer, Triad Financial Special Purpose LLC, the
transferor from which it proposes to purchase Notes, or from any other source)
as the Buyer has deemed necessary and advisable in order to make its investment
decision. The Buyer has had any questions arising from such investigation and
evaluation answered by the Issuer to the satisfaction of the Buyer. The Buyer is
a sophisticated institutional investor, having such knowledge and experience in
financial and business matters generally, and with respect to asset-backed notes
and investments in "non-prime" and "sub-prime" automobile loans specifically,
that it is capable of independently evaluating the merits and risks of
investment in the Notes. In the normal course of its business, the Buyer invests
in or purchases notes similar to the Notes. The Buyer is aware that it may be
required to bear the economic risk of an investment

                                      D-1
<PAGE>

in the Notes for an indefinite period of time, and it is able to bear such risk
for an indefinite period.

                                       Very truly yours,

                                       [BUYER]

                                       By: ____________________________________
                                       Name:
                                       Title:

                                       Taxpayer ID: ___________________________

                                       Name in which
                                       Note is
                                       to be Registered: ______________________

                                       Address for Notices ____________________

                                          __________________

                                          __________________

                                       Payment Instructions ___________________

                                      D-2
<PAGE>

                                                            ANNEX 1 TO EXHIBIT D

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

             [For Buyers Other Than Registered Investment Companies]

            The undersigned hereby certifies as follows to the parties listed in
the "Qualified Institutional Buyer" Transferee's Certificate to which this
certification relates with respect to the Rule 144A Securities described
therein:

            1. As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
Buyer.

            2. In connection with purchases by the Buyer, the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933 ("Rule 144A") because (i) the Buyer owned and/or invested
on a discretionary basis $_____________(1) in securities (except for the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year (such amount being calculated in accordance with Rule 144A) and (ii)
the Buyer satisfies the criteria in the category marked below.

      ____  Corporation, etc. The Buyer is a corporation (other than a bank,
            savings and loan association or similar institution), Massachusetts
            or similar business trust, partnership, or charitable organization
            described in Section 501(c)(3) of the Internal Revenue Code of 1986,
            as amended.

      ____  Bank. The Buyer (a) is a national bank or banking institution
            organized under the laws of any State, territory or the District of
            Columbia, the business of which is substantially confined to banking
            and is supervised by the State or territorial banking commission or
            similar official or is a foreign bank or equivalent institution, and
            (b) has an audited net worth of at least $25,000,000 as demonstrated
            in its latest annual financial statements, a copy of which is
            attached hereto.

      ____  Savings and Loan. The Buyer (a) is a savings and loan association,
            building and loan association, cooperative bank, homestead
            association or similar institution, which is supervised and examined
            by a State or Federal authority having supervision over any such
            institutions or is a foreign savings and loan association or
            equivalent institution and (b) has an audited net worth of at least
            $25,000,000

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

            (1)   Buyer must own and/or invest on a discretionary basis at least
$100,000,000 in securities unless Buyer is a dealer, and, in that case, Buyer
must own and/or invest on a discretionary basis at least $10,000,000 in
securities.

                                      D-3
<PAGE>

            as demonstrated in its latest annual financial statements, a copy of
            which is attached hereto.

      ____  Broker-dealer. The Buyer is a dealer registered pursuant to Section
            15 of the Securities Exchange Act of 1934.

      ____  Insurance Company. The Buyer is an insurance company whose primary
            and predominant business activity is the writing of insurance or the
            reinsuring of risks underwritten by insurance companies and which is
            subject to supervision by the insurance commissioner or a similar
            official or agency of a State, territory or the District of
            Columbia.

      ____  State or Local Plan. The Buyer is a plan established and maintained
            by a State, its political subdivisions, or any agency or
            instrumentality of the State or its political subdivisions, for the
            benefit of its employees.

      ____  ERISA Plan. The Buyer is an employee benefit plan within the meaning
            of Title I of the Employee Retirement Income Security Act of 1974.

      ____  Investment Advisor. The Buyer is an investment advisor registered
            under the Investment Advisers Act of 1940.

      ____  Small Business Investment Company. Buyer is a small business
            investment company licensed by the U.S. Small Business
            Administration under Section 301(c) or (d) of the Small Business
            Investment Act of 1958.

      ____  Business Development Company. Buyer is a business development
            company as defined in Section 202(a)(22) of the Investment Advisors
            Act of 1940.

      ____  Trust Fund. The Buyer is a trust fund whose Indenture Trustee is a
            bank or trust company and whose participants are exclusively State
            or Local Plans or ERISA Plans as defined above, and no participant
            of the Buyer is an individual retirement account or an H.R. 10
            (Keogh) plan.

            3.    The Buyer is not, and is not acting on behalf of or investing
the assets of, (a) 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, (b) a "plan" (as defined in
Section 4975(e)(1) of the Internal Revenue Code of 1986, as amended (the "Code")
that is subject to Section 4975 of the Code or (c) an entity whose underlying
assets include assets of a plan described in (a) or (b) above by reason of such
plan's investment in the entity (including, without limitation, an insurance
company general account).

            4.    The term "securities" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer, (ii) securities that
are part of an unsold allotment to or subscription by the Buyer, if the Buyer is
a dealer, (iii) bank deposit notes and certificates of deposit, (iv) loan
participations, (v) repurchase agreements, (vi) securities owned but subject to
a repurchase agreement and (vii) currency, interest rate and commodity swaps.

                                      D-4
<PAGE>

            5.    For purposes of determining the aggregate amount of securities
owned and/or invested on a discretionary basis by the Buyer, the Buyer used the
cost of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph, except (i) where the Buyer reports its
securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
the securities may be valued at market. Further, in determining such aggregate
amount, the Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934.

            6.    The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the securities
are relying and will continue to rely on the statements made herein because one
or more sales to the Buyer may be in reliance on Rule 144A.

            7.    Until the date of purchase of the Rule 144A Securities, the
Buyer will notify each of the parties to which this certification is made of any
changes in the information and conclusions herein. Until such notice is given,
the Buyer's purchase of Rule 144A Securities will constitute a reaffirmation of
this certification as of the date of such purchase. In addition, if the Buyer is
a Bank or Savings and Loan as provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

                                        _____________________________________
                                        Print Name of Buyer

                                        By: _________________________________
                                        Name:
                                        Title:

                                        Date: _______________________________

                                      D-5
<PAGE>

                                                            ANNEX 2 TO EXHIBIT D

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

              [For Buyers that are Registered Investment Companies]

            The undersigned hereby certifies as follows to the parties listed in
the "Qualified Institutional Buyer" Transferee's Certificate to which this
certification relates with respect to the Rule 144A Securities described
therein:

            1. As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933 ("Rule 144A"), because Buyer is part of a Family of
Investment Companies (as defined below), is such an officer of the Buyer.

            2. In connection with purchases by Buyer, the Buyer is a "qualified
institutional buyer" as defined in SEC Rule 144A because (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, and (ii)
as marked below, the Buyer alone, or the Buyer's Family of Investment Companies,
owned at least $100,000,000 in securities (other than the excluded securities
referred to below) as of the end of the Buyer's most recent fiscal year. For
purposes of determining the amount of securities owned by the Buyer or the
Buyer's Family of Investment Companies, the cost of such securities was used,
except (i) where the Buyer or the Buyer's Family of Investment Companies reports
its securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
the securities may be valued at market.

      ____  The Buyer owned $________________ in securities (other than the
            excluded securities referred to below) as of the end of the Buyer's
            most recent fiscal year (such amount being calculated in accordance
            with Rule 144A).

      ____  The Buyer is part of a Family of Investment Companies which owned in
            the aggregate $__________ in securities (other than the excluded
            securities referred to below) as of the end of the Buyer's most
            recent fiscal year (such amount being calculated in accordance with
            Rule 144A).

            3. The Buyer is not, and is not acting on behalf of or investing the
assets of, (a) 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, (b) a plan (as defined in Section
4975(e)(1) of the Internal Revenue Code of 1986, as amended (the "Code") that is
subject to Section 4975 of the Code or (c) an entity whose underlying assets
include assets of a plan described in (a) or (b) above by reason of such plan's
investment in the entity (including, without limitation, an insurance company
general account).

            4. The term "Family of Investment Companies" as used herein means
two or more registered investment companies (or series thereof) that have the
same investment adviser

                                      D-6
<PAGE>

or investment advisers that are affiliated (by virtue of being majority owned
subsidiaries of the same parent or because one investment adviser is a majority
owned subsidiary of the other).

            5. The term "securities" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer or are part of the
Buyer's Family of Investment Companies, (ii) bank deposit notes and certificates
of deposit, (iii) loan participations, (iv) repurchase agreements, (v)
securities owned but subject to a repurchase agreement and (vi) currency,
interest rate and commodity swaps.

            6. The Buyer is familiar with Rule 144A and understands that the
parties listed in the "Qualified Institutional Buyer" Transferee's Certificate
to which this certification relates are relying and will continue to rely on the
statements made herein because one or more sales to the Buyer will be in
reliance on Rule 144A. In addition, the Buyer will only purchase for the Buyer's
own account.

            7. Until the date of purchase of the Rule 144A Securities, the
undersigned will notify each of the parties to which this certification is made
of any changes in the information and conclusions herein. Until such notice is
given, the Buyer's purchase of Rule 144A Securities will constitute a
reaffirmation of this certification by the undersigned as of the date of such
purchase.

                                       ______________________________________
                                       Print Name of Buyer or Adviser

                                       By: __________________________________
                                       Name:
                                       Title:

                                       IF AN ADVISER:

                                       ______________________________________
                                       Print Name of Buyer

                                       Date: ________________________________

                                      D-7<PAGE>

                                                                     EXHIBIT 4.2

                               SALE AND SERVICING

                                    AGREEMENT

                                      among

                   TRIAD AUTOMOBILE RECEIVABLES TRUST 200_-_,

                                     Issuer,

                      TRIAD FINANCIAL SPECIAL PURPOSE LLC,

                                   Depositor,

                          TRIAD FINANCIAL CORPORATION,

                             Servicer and Custodian

                                       and

                              [INDENTURE TRUSTEE],

                      Backup Servicer and Indenture Trustee

                           Dated as of ________, 200_

<PAGE>

                                TABLE OF CONTENTS

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

     SECTION 1.1.     Definitions.........................................................................      1
     SECTION 1.2.     Other Definitional Provisions.......................................................     16

ARTICLE II Conveyance of Receivables......................................................................     17

     SECTION 2.1.     Conveyance of Receivables...........................................................     17
     SECTION 2.2.     [Reserved]..........................................................................     18
     SECTION 2.3.     Further Encumbrance of Trust Property...............................................     18

ARTICLE III The Receivables...............................................................................     19

     SECTION 3.1.     Representations and Warranties......................................................     19
     SECTION 3.2.     Repurchase upon Breach of Representations and Warranties............................     19
     SECTION 3.3.     Custody of Receivables Files........................................................     20

ARTICLE IV Administration and Servicing of Receivables....................................................     22

     SECTION 4.1.     Duties of the Servicer..............................................................     22
     SECTION 4.2.     Collection of Receivable Payments; Modifications of Receivables; Blocked
                      Account Agreement...................................................................     23
     SECTION 4.3.     Realization upon Receivables........................................................     25
     SECTION 4.4.     Insurance...........................................................................     26
     SECTION 4.5.     Maintenance of Security Interests in Vehicles.......................................     27
     SECTION 4.6.     Covenants, Representations, and Warranties of Servicer..............................     28
     SECTION 4.7.     Purchase of Receivables Upon Breach of Covenant.....................................     30
     SECTION 4.8.     Total Servicing Fee; Payment of Certain Expenses by Servicer........................     30
     SECTION 4.9.     Servicer's Certificate..............................................................     30
     SECTION 4.10.    Annual Statement as to Compliance, Notice of Servicer Termination Event.............     31
     SECTION 4.11.    Annual Independent Accountants' Report..............................................     31
     SECTION 4.12.    Access to Certain Documentation and Information Regarding Receivables...............     32
     SECTION 4.13.    Reserved............................................................................     32
     SECTION 4.14.    Fidelity Bond and Errors and Omissions Policy.......................................     32

ARTICLE V Trust Accounts; Distributions; Statements to Noteholders........................................     32

     SECTION 5.1.     Establishment of Trust Accounts.....................................................     32
     SECTION 5.2.     [Reserved]..........................................................................     34
     SECTION 5.3.     Certain Reimbursements to the Servicer..............................................     34
     SECTION 5.4.     Application of Collections..........................................................     35
     SECTION 5.5.     Spread Account......................................................................     35
     SECTION 5.6.     Additional Deposits.................................................................     35
     SECTION 5.7.     Distributions.......................................................................     36
     SECTION 5.8.     Note Distribution Account...........................................................     37
</TABLE>

                                       i
<PAGE>
<TABLE>
<S>                                                                                                            <C>
     SECTION 5.9.     Reserved............................................................................     39
     SECTION 5.10.    Statements to Noteholders...........................................................     39
    [SECTION 5.11.    Optional Deposits by the Insurer....................................................     40]

[ARTICLE VI The Note Policy................................................................................    40]

    [SECTION 6.1.     Claims Under Note Policy............................................................     40]
    [SECTION 6.2.     Preference Claims Under Note Policy.................................................     42]
    [SECTION 6.3.     Surrender of Note Policy............................................................     43]

ARTICLE VII The Depositor.................................................................................     43

     SECTION 7.1.     Representations of Depositor........................................................     43
     SECTION 7.2.     Organizational Existence............................................................     45
     SECTION 7.3.     Liability of Depositor..............................................................     45
     SECTION 7.4.     Merger or Consolidation of, or Assumption of the Obligations of, Depositor..........     45
     SECTION 7.5.     Limitation on Liability of Depositor and Others.....................................     45
     SECTION 7.6.     Ownership of the Certificates or Notes..............................................     45

ARTICLE VIII The Servicer.................................................................................     45

     SECTION 8.1.     Representations of Servicer.........................................................     45
     SECTION 8.2.     Liability of Servicer; Indemnities..................................................     47
     SECTION 8.3.     Merger or Consolidation of, or Assumption of the Obligations of the Servicer
                      or Backup Servicer..................................................................     47
     SECTION 8.4.     Limitation on Liability of Servicer, Backup Servicer and Others.....................     48
     SECTION 8.5.     Delegation of Duties................................................................     49
     SECTION 8.6.     Servicer and Backup Servicer Not to Resign..........................................     49

ARTICLE IX Default........................................................................................     50

     SECTION 9.1.     Servicer Termination Event..........................................................     50
     SECTION 9.2.     Consequences of a Servicer Termination Event........................................     51
     SECTION 9.3.     Appointment of Successor............................................................     52
     SECTION 9.4.     Notification to Noteholders.........................................................     53
     SECTION 9.5.     Waiver of Past Defaults.............................................................     53

ARTICLE X Termination.....................................................................................     53

     SECTION 10.1.    Optional Purchase of All Receivables................................................     53

ARTICLE XI Administrative Duties of the Servicer..........................................................     54

     SECTION 11.1.    Administrative Duties...............................................................     54
     SECTION 11.2.    Records.............................................................................     56
     SECTION 11.3.    Additional Information to be Furnished to the Issuer................................     56

ARTICLE XII Miscellaneous Provisions......................................................................     56

     SECTION 12.1.    Amendment...........................................................................     56
     SECTION 12.2.    Protection of Title to Trust........................................................     57
     SECTION 12.3.    Notices.............................................................................     58
     SECTION 12.4.    Assignment..........................................................................     60
</TABLE>

                                       ii
<PAGE>

<TABLE>
<S>                                                                                                            <C>
     SECTION 12.5.    Limitations on Rights of Others.....................................................     60
     SECTION 12.6.    Severability........................................................................     60
     SECTION 12.7.    Separate Counterparts...............................................................     60
     SECTION 12.8.    Headings............................................................................     60
     SECTION 12.9.    Governing Law.......................................................................     60
     SECTION 12.10.   Assignment to Indenture Trustee.....................................................     60
     SECTION 12.11.   Nonpetition Covenants...............................................................     61
     SECTION 12.12.   Limitation of Liability of Owner Trustee and Indenture Trustee......................     61
     SECTION 12.13.   Independence of the Servicer........................................................     61
     SECTION 12.14.   No Joint Venture....................................................................     62
     SECTION 12.15.   Nonpublic Personal Information......................................................     62
</TABLE>

     SCHEDULES

     Schedule A       Schedule of Receivables
     Schedule B       Representations and Warranties
     Schedule C       Servicing Policies and Procedures
     Schedule D       Custodian Third Party Vendors

     EXHIBITS

     Exhibit A        Form of Servicer's Certificate
    [Exhibit B        Form of Note Guaranty Insurance Policy]

                                      iii

<PAGE>

            SALE AND SERVICING AGREEMENT dated as of _______, 200_, among TRIAD
AUTOMOBILE RECEIVABLES TRUST 200_-_, a Delaware statutory trust (the "Issuer"),
TRIAD FINANCIAL SPECIAL PURPOSE LLC, a Delaware limited liability company (the
"Depositor"), and TRIAD FINANCIAL CORPORATION, a California corporation
("Triad", in its capacity as Servicer, the "Servicer", and in its capacity as
Custodian, the "Custodian"), and [INDENTURE TRUSTEE], in its capacity as Backup
Servicer and Indenture Trustee (in such capacities, the "Backup Servicer" and
the "Indenture Trustee", respectively).

            The Issuer desires to purchase the Receivables and Other Conveyed
Property;

            The Depositor has purchased the Receivables and Other Conveyed
Property from Triad and is willing to sell the Receivables and Other Conveyed
Property to the Issuer;

            The Servicer is willing to service the Receivables;

            The Custodian is willing to take custody of the Receivable Files.

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

                                   ARTICLE I

                                  Definitions

      SECTION 1.1. Definitions. Whenever used in this Agreement, the following
words and phrases will have the following meanings:

            "Accounting Date" means, with respect to any Collection Period the
last day of such Collection Period.

            "Additional Funds Available" means, with respect to any Distribution
Date, [the sum of: (1)] the Spread Account Draw Amount, if any, received by the
Indenture Trustee with respect to the Distribution Date[; plus (2) the Insurer
Optional Deposit, if any, received by the Indenture Trustee with respect to the
Distribution Date.]

            "Administrative Receivable" means, so long as Triad is the Servicer,
with respect to any Collection Period, a Receivable which the Servicer is
required to purchase pursuant to Section 4.7 on the Determination Date with
respect to such Collection Period.

            "Affiliate" means, with respect to any specified Person, any other
Person controlling or controlled by or under common control with such specified
Person. For the purposes of this definition, "control" when used with respect to
any Person means the power to direct the management and policies of such Person,
directly or indirectly, whether through the ownership of voting securities, by
contract or otherwise; and the terms "controlling" and "controlled" have
meanings correlative to the foregoing.

            "Aggregate Principal Balance" means, with respect to any date of
determination, the sum of the Principal Balances for all Receivables (other than
(i) any Receivable that became a Liquidated Receivable prior to the end of the
preceding Collection Period and (ii) any Receivable

<PAGE>

that became a Purchased Receivable prior to the end of the preceding Collection
Period) as of the date of determination.

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

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

            "Attestation Protocol" means, the procedures, standards, guidance,
explanatory materials and exhibits with respect to the conduct of an attestation
program that are set forth in the preface, introduction and exhibits to The
Uniform Single Attestation Program for Mortgage Bankers effective for fiscal
years ended on or after December 15, 1995 or in any successor program, to the
extent such procedures, standards, guidance, explanatory materials and exhibits
are applicable to the servicing obligations set forth herein.

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

            "Auto Loan Purchase and Sale Agreement" means any agreement between
a Third-Party Lender and Triad relating to the acquisition of Receivables from a
Third Party Lender by Triad.

            "Available Funds" means, for any Collection Period, the sum of (1)
the Collected Funds for the Collection Period; plus (2) all Purchase Amounts
deposited in the Collection Account with respect to the Collection Period, plus
income on investments held in the Collection Account, including earnings
transferred to the Collection Account pursuant to Section 5.1(b) hereof; plus
(3) the proceeds of any liquidation of the assets of the Issuer, other than Net
Liquidation Proceeds.

            "Backup Servicer" means [Indenture Trustee].

            "Base Servicing Fee" means, with respect to any Collection Period,
the fee payable to the Servicer for services rendered during such Collection
Period, which will be equal to one-twelfth of the Servicing Fee Rate multiplied
by the Pool Balance as of the opening of business on the first day of such
Collection Period.

            "Basic Documents" means this Agreement, the Certificate of Trust,
the Trust Agreement, the Purchase Agreement, [the Insurance Agreement,] the
Indenture, and the other documents and certificates delivered in connection
therewith.

            "Blocked Account Agreement" means the Blocked Account Agreement with
Notice, dated as of April 29, 2005, by and among Triad, the Processing Bank,
Mellon Financial Services Corporation #1, Triad Automobile Receivables Warehouse
Trust and the Indenture Trustee, as such agreement may be amended or
supplemented from time to time, unless the Indenture Trustee will cease to be a
party thereunder, or such agreement will be terminated in accordance with its
terms, in which event "Blocked Account Agreement" will mean such other
agreement, in form and substance acceptable to the Controlling Party, among the
Servicer, the Indenture Trustee and the Bank.

                                        2
<PAGE>

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

            "Certificate" means the trust certificate evidencing the beneficial
interest of the Certificateholder in the Trust.

            "Certificateholders" means the Persons in whose name the
Certificates are registered.

            "Class" means the [Class A-1 Notes], the [Class A-2 Notes], the
[Class A-3 Notes], the [Class A-4 Notes] or the Class B Notes, as the context
requires.

            "Class A Notes" means, collectively, the [Class A-1 Notes], the
[Class A-2 Notes], the [Class A-3 Notes] and the [Class A-4 Notes].

            "Class A Noteholders" means holders of the Class A Notes.

            "Class A Noteholders' Accelerated Principal Amount" means, for any
Distribution Date, the lesser of: (1) the sum of (a) the excess, if any, of the
amount of Available Funds on the Distribution Date over the amounts payable on
the Distribution Date under clauses (i) through (xiii) of Section 5.7(a); plus,
(b) the amounts, if any, on deposit in the Spread Account in excess of the
Spread Account Requirement for the Distribution Date; and (2) the excess, if
any, on the Distribution Date of (a) the Pro Forma Class A Note Balance for the
Distribution Date; over (b) the Required Pro Forma Class A Note Balance for the
Distribution Date.

            "Class A Noteholders' Interest Distributable Amount" means, for any
Distribution Date, the sum of the Class A Noteholders' Monthly Interest
Distributable Amount for each Class of Class A Notes for such Distribution Date
and the Class A Noteholders' Interest Carryover Amount, if any, for each Class
of Class A Notes, calculated as of such Distribution Date.

            "Class A Noteholders' Interest Carryover Amount" means, for any
Class of Class A Notes and any Determination Date, all or any portion of the
Class A Noteholders' Interest Distributable Amount for the Class for the
immediately preceding Distribution Date still unpaid as of the Determination
Date, plus, to the extent permitted by law, interest on the unpaid amount at the
interest rate paid on the Class of Notes from the preceding Distribution Date to
but excluding the related Distribution Date.

            "Class A Noteholders' Monthly Interest Distributable Amount" means,
for any Distribution Date and any Class of Class A Notes, the interest accrued
at the applicable Interest Rates during the applicable Interest Period on the
principal amount of the Notes of each Class of the Class A Notes outstanding as
of the end of the prior Distribution Date or, in the case of the first
Distribution Date, as of the Closing Date.

            "Class A Noteholders' Monthly Principal Distributable Amount" means,
with respect to any Distribution Date, the amount, which will not be les than
zero, equal to the excess, if any, of (x) the sum of (i) the principal portion
of all Collected Funds received during the immediately preceding Collection
Period (other than with respect to Liquidated Receivables), including any full
and partial principal prepayments during such Collection Period, (ii) the
Principal Balance of all Receivables that became Liquidated Receivables during
the related Collection Period (other than

                                        3
<PAGE>

Purchased Receivables), (iii) the principal portion of any Purchase Amounts
received with respect to all Receivables that became Purchased Receivables
during the related Collection Period, [(iv) in the sole discretion of the
Insurer, the Principal Balance of all the Receivables that were required to be
purchased pursuant to Sections 3.2 and 4.7, during such Collection Period but
were not purchased,] (v) the aggregate amount of Cram Down Losses that occurred
during the related Collection Period, and (vi) if the Notes have been
accelerated pursuant to Section 5.2 of the Indenture, the amount of money or
property collected in respect of principal collections pursuant to Section 5.4
of the Indenture following such acceleration by the Indenture Trustee or
Controlling Party to the extent not used to pay interest to the Class A Notes
pursuant to Section 5.6 of the Indenture over (y) the sum of the Step-Down
Amount, if any, for such Distribution Date and amounts distributed under Section
5.7(a)(iv) and (vii), if any, for such Distribution Date.

            "Class A Noteholders' Parity Deficit Amount" means, for any
Distribution Date, the excess, if any, of (1) the aggregate remaining principal
amount of the Class A Notes outstanding on the Distribution Date after giving
effect to all reductions in such aggregate principal amount [from sources other
than the Note Policy] over (2) the Pool Balance at the end of the prior
Collection Period.

            "Class A Noteholders' Principal Carryover Amount" means, as of any
Determination Date, all or any portion of the Class A Noteholders' Principal
Distributable Amount from the immediately preceding Distribution Date that
remains unpaid.

            "Class A Noteholders' Principal Distributable Amount" means, for any
Distribution Date, the sum of the Class A Noteholders' Monthly Principal
Distributable Amount for the Distribution Date and the Class A Noteholders'
Principal Carryover Amount, if any, as of the Distribution Date.

            ["Class A-1 Notes" has the meaning assigned to such term in the
Indenture.]

            ["Class A-2 Notes" has the meaning assigned to such term in the
Indenture.]

            ["Class A-3 Notes" has the meaning assigned to such term in the
Indenture.]

            ["Class A-4 Notes" has the meaning assigned to such term in the
Indenture.]

            "Class B Notes" has the meaning assigned to such term in the
Indenture.

            "Class B Noteholders' Interest Distributable Amount" means, for any
Distribution Date, the sum of the Class B Noteholders' Monthly Interest
Distributable Amount for such Distribution Date and the Class B Noteholders'
Interest Carryover Amount, if any, calculated as of such Distribution Date.

            "Class B Noteholders' Interest Carryover Amount" means, for any
Determination Date, all or any portion of the Class B Noteholders' Interest
Distributable Amount for the immediately preceding Distribution Date still
unpaid as of the Determination Date, plus, to the extent permitted by law,
interest on the unpaid amount at the interest rate paid on the Class B Notes
from the preceding Distribution Date to but excluding the related Distribution
Date.

            "Class B Noteholders' Monthly Interest Distributable Amount" means,
for any Distribution Date, the interest accrued during the applicable interest
period on the principal amount

                                        4
<PAGE>

of the Class B Notes outstanding as of the end of the prior Distribution Date
or, in the case of the first Distribution Date, as of the Closing Date.

            "Closing Date" means _______, 200_.

            "Collateral Insurance" has the meaning set forth in Section 4.4(a).

            "Collected Funds" means, with respect to any Collection Period, the
amount of funds in the Collection Account representing collections on the
Receivables (other than Purchased Receivables) during such Collection Period,
including all Net Liquidation Proceeds collected during such Collection Period
(but excluding any Purchase Amounts).

            "Collection Account" means the account designated as such,
established and maintained pursuant to Section 5.1.

            "Collection Period" means, with respect to the first Distribution
Date, the period beginning on the close of business on __________, 200_ and
ending on the close of business on _________, 200_. With respect to each
subsequent Distribution Date, "Collection Period" means the period beginning on
the open of business on the first day of the immediately preceding calendar
month and ending on the close of business on the last day of the immediately
preceding calendar month. Any amount stated "as of the close of business of the
last day of a Collection Period" will give effect to the following calculations
as determined as of the end of the day on such last day: (i) all applications of
collections and (ii) all distributions.

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

            "Computer Tape" means the computer tapes or other electronic media
furnished by Triad to the Issuer and its assigns describing certain
characteristics of the Receivables as of the Cutoff Date.

            "Contract" means a motor vehicle retail installment sale contract,
installment loan contract or note and security agreement.

            "Controlling Party" means [the Insurer, provided that if (i) an
Insurer Default has occurred and is continuing or (ii) all amounts payable to
the Class A Noteholders under the Indenture and the Insurer under the Insurance
Agreement have been paid in full, then the Controlling Party means] the
Indenture Trustee acting at the direction of the Majority Noteholders.

            "Copies" has the meaning set forth in Section 3.3(c).

            "Corporate Trust Office" means (i) with respect to the Owner
Trustee, the principal corporate trust office of the Owner Trustee, which at the
time of execution of this agreement is _________________________, and (ii) with
respect to the Indenture Trustee and the Backup Servicer, the principal office
at which at any particular time its corporate trust business is administered,
which at the time of execution of this agreement is __________________________.

            "Cram Down Loss" means, for any Receivable (other than a Purchased
Receivable or a Liquidated Receivable), if a court of appropriate jurisdiction
in an insolvency proceeding issued an order reducing the amount owed on the
Receivable or otherwise modifying or restructuring the

                                       5
<PAGE>

scheduled payments to be made on the Receivable, an amount equal to the
excess of the Receivable's Principal Balance immediately prior to the order over
the Receivable's Principal Balance as reduced.

            "Cumulative Net Loss Ratio" means with respect to any Determination
Date, the ratio, expressed as a percentage, computed by dividing (i) Cumulative
Net Losses as of such Determination Date by (ii) the Original Pool Balance.

            "Cumulative Net Losses" means with respect to any Determination
Date, the aggregate principal balance of all Net Liquidation Losses for each
Collection Period from the Closing Date to and including the last day of the
related Collection Period.

            "Custodian" means Triad as custodian hereunder acting as agent for
the Indenture Trustee, or any other Person named from time to time as custodian
hereunder, which Person must be reasonably acceptable to the Controlling Party
[(the Custodian as of the Closing Date is acceptable to the Insurer as of the
Closing Date)].

            "Cutoff Date" means __________, 200_.

            "Dealer" means a dealer who sold a Financed Vehicle and who
originated and assigned the respective Receivable to Triad under a Dealer
Agreement or pursuant to a Dealer Assignment.

            "Dealer Agreement" means any agreement between a Dealer and Triad
relating to the acquisition of Receivables from the Dealer by Triad.

            "Dealer Assignment" means, with respect to a Receivable, the
executed assignment executed by the Dealer conveying such Receivable to Triad.

            "Delinquency Rate" means, with respect to any Determination Date, a
fraction, expressed as a percentage, (a) the numerator of which is equal to the
Aggregate Principal Balance of all Receivables, other than Liquidated
Receivables, for which 10% or more of a Scheduled Receivables Payment was 60 or
more days delinquent as of the last day of the related Collection Period and (b)
the denominator of which is equal to the Aggregate Principal Balance as of the
last day of the related Collection Period.

            "Depositor" means Triad Financial Special Purpose LLC, a Delaware
limited liability company.

            "Determination Date" means, with respect to any Collection Period,
the 3rd Business Day preceding the Distribution Date in the next Collection
Period.

            "Distribution Date" means, with respect to each Collection Period,
the __ day of the following Collection Period, or, if such day is not a Business
Day, the immediately following Business Day, commencing ________, 200_.

            "Electronic Ledger" means the electronic master record of the motor
vehicle retail installment sale contracts, installment loan contracts and note
and security agreements of the Servicer.

                                        6
<PAGE>

            "Eligible Deposit Account" means a segregated trust account with the
corporate trust department of a depository institution [acceptable to the
Insurer] organized under the laws of the United States of America or any one of
the states thereof or the District of Columbia (or any domestic branch of a
foreign bank), having corporate trust powers and acting as trustee for funds
deposited in such account, so long as any of the securities of such depository
institution and its corporate parent have a credit rating from each Rating
Agency in one of its generic rating categories which signifies investment grade
and a rating of at least A-1 by Standard &Poor's and/or P-1 by Moody's.

            "Eligible Investments" mean book-entry securities, negotiable
instruments or securities, in each case denominated in United States dollars,
represented by instruments in bearer or registered form which evidence:

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

      (b) demand deposits, time deposits or certificates of deposit of any
depository institution or trust company incorporated under the laws of the
United States of America or any state thereof or the District of Columbia (or
any domestic branch of a foreign bank) and subject to supervision and
examination by federal or state banking or depository institution authorities
(including depository receipts issued by any such institution or trust company
as custodian with respect to any obligation referred to in clause (a) above or
portion of such obligation for the benefit of the holders of such depository
receipts); provided, however, that at the time of the investment or contractual
commitment to invest therein (which will be deemed to be made again each time
funds are reinvested following each Distribution Date), the commercial paper or
other short-term senior unsecured debt obligations (other than such obligations
the rating of which is based on the credit of a Person other than such
depository institution or trust company) of such depository institution or trust
company will have a credit rating from Standard & Poor's of A-1+ and from
Moody's of P-1;

      (c) commercial paper and demand notes investing solely in commercial paper
having, at the time of the investment or contractual commitment to invest
therein, a rating from Standard & Poor's of A-1+ and from Moody's of P-1;

      (d) investments in money market funds (including funds for which the
Indenture Trustee or the Owner Trustee in each of their individual capacities or
any of their respective Affiliates is investment manager, controlling party or
advisor) having a rating from Standard & Poor's of AAA and from Moody's of Aaa;

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

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

      (g) any other investment which would satisfy the Rating Agency Condition
and is consistent with the ratings of the Securities [and which, so long as no
Insurer Default has occurred

                                       7
<PAGE>

and is continuing, has been approved by the Insurer,] or any other investment
that by its terms converts to cash within a finite period, if the Rating Agency
Condition is satisfied with respect thereto; and

      (h) cash.

            Any of the foregoing Eligible Investments may be purchased by or
through the Owner Trustee or the Indenture Trustee or any of their respective
Affiliates. None of the Eligible Investments may have an "r"subscript as part of
its S&P rating. Each of the Eligible Investments must have a predetermined fixed
dollar amount that is due at maturity.

            "Eligible Servicer" means, Triad Financial Corporation, as Servicer,
[Indenture Trustee], as Backup Servicer, or another Person which at the time of
its appointment as Servicer or Backup Servicer, (i) is servicing a portfolio of
motor vehicle retail installment sale contracts and/or motor vehicle installment
loan contracts, (ii) is legally qualified and has the capacity to service the
Receivables, (iii) has demonstrated the ability professionally and competently
to service a portfolio of motor vehicle retail installment sale contracts and/or
motor vehicle installment loan contracts similar to the Receivables with
reasonable skill and care, (iv) is qualified and entitled to use, pursuant to a
license or other written agreement, and agrees to maintain the confidentiality
of, the software which the Servicer uses in connection with performing its
duties and responsibilities under this Agreement or otherwise has available
software which is adequate to perform its duties and responsibilities under this
Agreement, [and (v) so long as no Insurer Default has occurred and is
continuing, is reasonably acceptable to the Insurer].

            "FDIC" means the Federal Deposit Insurance Corporation.

            "Final Scheduled Distribution Date" means with respect to (i) the
[Class A-1 Notes], the _____ 20__ Distribution Date, (ii) the [Class A-2 Notes],
the ______ 20__ Distribution Date, (iii) the [Class A-3 Notes], the ____ 20__
Distribution Date, (iv) the [Class A-4 Notes], the ______ 20__ Distribution Date
and (v) the Class B Notes, the ________ 20__ Distribution Date.

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

           ["Fitch" means Fitch Ratings, or its successor.]

            "Indenture" means the Indenture dated as of ______, 200_, between
the Issuer and [Indenture Trustee], as Indenture Trustee, as the same may be
amended and supplemented from time to time.

            "Indenture Trustee" means [Indenture Trustee], its successors in
interest and any successor trustee hereunder and under the Indenture.

            "Indenture Trustee Fee" means, with respect to any Collection
Period, the fee payable to the Indenture Trustee for services rendered during
such Collection Period, which will be equal to $___.

            "Independent Accountants" has the meaning set forth in Section 4.11.

                                        8
<PAGE>

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

            "Insolvency Proceeds" has the meaning set forth in Section 10.1(b).

           ["Insurance Agreement" means the Insurance and Indemnity Agreement,
dated as of ______, 200_, among the Insurer, the Trust, the Depositor, Triad and
the Indenture Trustee.]

           ["Insurance Agreement Event of Default" means an "Event of Default"
as defined in the Insurance Agreement.]

           ["Insurance Policy" means, with respect to a Receivable, any
insurance policy (including the insurance policies described in Section 4.4)
benefiting the holder of the Receivable providing loss or physical damage,
credit life, credit disability, theft, mechanical breakdown or similar coverage
with respect to the Financed Vehicle or the Obligor.]

           ["Insured Payment" has the meaning set forth in the Note Policy.]

           ["Insurer" means [Insurer], a _______________ or any successor
thereto, as issuer of the Note Policy.]

           ["Insurer Default" means the occurrence and continuance of any of the
following events:

      (a) the Insurer failing to make a payment required under the Note Policy
in accordance with its terms;

      (b) the Insurer (i) filing a petition or commencing any case or proceeding
under any provision or chapter of the United States Bankruptcy Code or any other
similar federal or state law relating to insolvency, bankruptcy, rehabilitation,
liquidation or reorganization, (ii) making a general assignment for the benefit
of its creditors, or (iii) having an order for relief entered against it under
the United States Bankruptcy Code or any other similar federal or state law
relating to insolvency, bankruptcy, rehabilitation, liquidation or
reorganization which is final and nonappealable; or

      (c) a court of competent jurisdiction, the ____________ or other competent
regulatory authority has entered a final and nonappealable order, judgment or
decree (i) appointing a custodian,

                                        9
<PAGE>

trustee, agent or receiver for the Insurer or for all or any material portion of
its property or (ii) authorizing the taking of possession of all or any material
portion of the property of the Insurer by a custodian, trustee, agent or
receiver.]

           ["Insurer Optional Deposit" means, for any Distribution Date, an
amount other than an Insured Payment delivered by the Insurer, at its sole
option, for deposit into the Collection Account for any of the following
purposes: to provide funds to pay the fees or expenses of any of the Issuer's
service providers for the Distribution Date; or to include those amounts as part
of Additional Funds Available for the Distribution Date to the extent that
without them a draw would be required to be made on the Note Policy.]

            "Interest Period" means, with respect to any Distribution Date, (i)
with respect to the [Class A-1 Notes], the period from and including the
preceding Distribution Date (or in the case of the first Distribution Date, from
and including the Closing Date) to, but excluding, such Distribution Date and
(ii) with respect to the [Class A-2 Notes], the [Class A-3 Notes], the [Class
A-4 Notes] and the Class B Notes, the period from and including the ____ day of
the prior calendar month (or in the case of the first Distribution Date, from
and including the Closing Date) to, but excluding, the 12th day of the calendar
month in which such Distribution Date occurs.

            "Interest Rate" means, with respect to (i) the [Class A-1 Notes],
___% per annum, (ii) the [Class A-2 Notes], ___% per annum, (iii) the [Class A-3
Notes], ___% per annum, (v) the [Class A-4 Notes], ___% per annum and (vi) the
Class B Notes, ___% per annum (in the case of the [Class A-1 Notes], computed on
the basis of a 360 day year and the actual number of days in the related
Interest Period and in the case of the [Class A-2 Notes], [Class A-3 Notes],
[Class A-4 Notes] and Class B Notes computed on the basis of a 360-day year
consisting of twelve 30-day months).

            "Investment Earnings" means, with respect to any date of
determination and Trust Account, the investment earnings on amounts on deposit
in such Trust Account on such date.

            "Issuer" means Triad Automobile Receivables Trust 200_-_, a Delaware
statutory trust.

            "Lien" means a security interest, lien, charge, pledge, equity, or
encumbrance of any kind, other than tax liens, mechanics' liens and any liens
that attach to the respective Receivable by operation of law as a result of any
act or omission by the related Obligor.

            "Lien Certificate" means, with respect to a Financed Vehicle, an
original certificate of title, certificate of lien or other notification issued
by the Registrar of Titles of the applicable state to a secured party which
indicates that the lien of the secured party on the Financed Vehicle is recorded
on the original certificate of title. In any jurisdiction in which the original
certificate of title is required to be given to the Obligor, the term "Lien
Certificate" will mean only a certificate or notification issued to a secured
party.

            "Liquidated Receivable" means, with respect to any Collection
Period, any Receivable with respect to which any of the following has occurred:
(i) 10% or more of any Scheduled Receivable Payment is 120 days or more past
due, except Receivables with respect to which the related Financed Vehicle has
been repossessed within such 120 days; (ii) the earlier of (A) 90 days have
elapsed since the Servicer repossessed the Financed Vehicle and (B) the sale of
the

                                       10
<PAGE>

related Financed Vehicle; or (iii) the Servicer has determined in good faith
that it has received all amounts it expects recover.

            "Lockbox Account" means an account maintained by the Processing
Bank pursuant to Section 4.2(d).

            "Majority Noteholders" has the meaning set forth in the Indenture.

            "Minimum Servicing Standards" means servicing standards identified
as "Minimum Servicing Standards" in The Uniform Single Attestation Program for
Mortgage Bankers effective for fiscal years ended on or after December 15, 1995
or in any successor program, to the extent such standards are applicable to the
servicing obligations set forth herein.

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

            "Monthly Records" means all records and data maintained by the
Servicer with respect to the Receivables, including the following with respect
to each Receivable: the account number; the originating Dealer; Obligor name;
Obligor address; Obligor home phone number; Obligor business phone number, if
any; original Principal Balance; original term; Annual Percentage Rate; current
Principal Balance; current remaining term; origination date; first payment date;
final scheduled payment date; next payment due date; new/used classification;
collateral description; days currently delinquent; number of contract extensions
(months) to date; amount of Scheduled Receivables Payment; and past due late
charges.

            "Moody's" means Moody's Investors Service, Inc., or its successor.

            "Net Liquidation Losses" means, with respect to any Determination
Date, the amount, if any, by which (a) the sum of (i) the Principal Balance of
all Receivables which became Liquidated Receivables during the related
Collection Period, and (ii) the aggregate of all Cram Down Losses that occurred
during such Collection Period, exceeds (b) the Net Liquidation Proceeds received
during the related Collection Period in respect of all Liquidated Receivables.

            "Net Liquidation Proceeds" means, with respect to a Liquidated
Receivable, (1) proceeds from the disposition of the underlying Financed
Vehicle; plus (2) any related insurance proceeds; plus (3) other monies received
from the Obligor that are allocable to principal and interest due under the
Receivable; minus (4) the Servicer's reasonable out-of-pocket costs, including
repossession and resale expenses not already deducted from the proceeds, and any
amounts required to be remitted to the Obligor by law.

            "Net Loss Rate" means, with respect to a Collection Period, the
fraction, expressed as a percentage, the numerator of which is equal to the
aggregate of the Net Liquidation Losses for such Collection Period and the
denominator of which is the Aggregate Principal Balance as of the first day of
such Collection Period.

            "Note Distribution Account" means the account designated as such,
established and maintained pursuant to Section 5.1.

                                       11
<PAGE>

           ["Note Policy" means the financial guaranty insurance policy issued
by the Insurer to the Indenture Trustee for the benefit of the Class A
Noteholders.]

            "Note Pool Factor" means, for each Class of Notes as of the close of
business on any date of determination, a seven-digit decimal figure equal to the
outstanding principal amount of such Class of Notes divided by the original
principal amount of such Class of Notes.

            "Note Preference Claim" has the meaning set forth in Section 6.2(b).

            "Noteholders" means the holders of the Class A Notes and Class B
Notes.

            "Notes" means the Class A Notes and the Class B Notes.

            "Obligor" on a Receivable means the purchaser or co-purchaser(s) of
a Financed Vehicle and any other Person who owes payments under the Receivable.

            "Officer's Certificate" means a certificate signed by the chairman
of the board, the president, any executive vice president or any vice president,
any treasurer, assistant treasurer, secretary or assistant secretary of the
Servicer, as appropriate.

            "Opinion of Counsel" means a written opinion of counsel [reasonably
acceptable to the Insurer, which opinion is] satisfactory in form and substance
to the Indenture Trustee [and, if such opinion or a copy thereof is required by
the provisions of this Agreement to be delivered to the Insurer, to the
Insurer.]

            "Original Pool Balance" means, as of any date of determination,
$___________ (which is the Pool Balance as of the Cutoff Date).

            "Originator" means Triad.

            "Other Conveyed Property" means all property conveyed by the
Depositor to the Trust pursuant to Section 2.1(b) through (h).

            "Owner Trust Estate" has the meaning assigned to such term in the
Trust Agreement.

            "Owner Trustee" means Wilmington Trust Company, not in its
individual capacity but solely as Owner Trustee under the Trust Agreement, its
successors in interest or any successor Owner Trustee under the Trust Agreement.

            "Owner Trustee Fee" means with respect to any Collection Period, the
fee payable to the Owner Trustee for services rendered during such Collection
Period, which will be equal to $___.

            "Person" means any individual, corporation, estate, partnership,
joint venture, association, joint stock company, trust (including any
beneficiary thereof), unincorporated organization or government or any agency or
political subdivision thereof.

           ["Policy Claim Amount" has the meaning set forth in the Note Policy.]

            "Pool Balance" means, as of any date of determination, the Aggregate
Principal Balance at the end of the preceding Collection Period.

                                       12
<PAGE>

            ["Preference Amount" has the meaning set forth in the Note Policy.]

            ["Premium" means the premium payable to the Insurer, as specified in
the Insurance Agreement.]

            "Principal Balance" means, for any Receivable as of any date of
determination, (i) the Amount Financed; minus (ii) the sum of (a) that portion
of all amounts received on or prior to that date and allocable to principal
according to the Receivable's terms, and (b) any Cram Down Losses for the
Receivable accounted for as of that date.

            "Processing Bank" means, initially, Mellon Bank, N.A. and its
successors in interest, and thereafter a depository institution named by the
Servicer [and approved by the Insurer (so long as no Insurer Default has
occurred and is continuing)] which provides a lockbox as part of its normal and
customary services at which the Lockbox Account is established and maintained as
of such date; provided, however, that upon the occurrence of a Servicer
Termination Event, the Controlling Party may, in its sole discretion, cause the
Lockbox Account to be established at another bank.

            "Pro Forma Class A Note Balance" means, for any Distribution Date,
the aggregate remaining principal amount of the Class A Notes outstanding on the
Distribution Date, after giving effect to distributions to be made on such
Distribution Date under clauses (i) through (xiii) of Section 5.7(a).

            "Purchase Agreement" means the Purchase Agreement between the
Depositor and Triad, dated as of ________, 200_, as such Purchase Agreement may
be amended from time to time.

            "Purchase Amount" means, with respect to a Receivable, the sum of
(i) the Principal Balance as of the date of purchase and (ii) an amount of
interest accrued thereon at the related Annual Percentage Rate from the end of
the prior Collection Period through the last day of the month of purchase.

            "Purchased Receivable" means, with respect to any Collection Period,
a Receivable purchased as of the close of business on the last day of the
Collection Period by Triad or the Servicer so long as [Indenture Trustee] is not
acting as Servicer, as the result of a breach of a covenant or as an exercise of
its optional redemption right.

            "Rating Agency" means Moody's, Standard & Poor's [and Fitch]. If no
such organization or successor maintains a rating on the Securities, "Rating
Agency" will mean a nationally recognized statistical rating organization or
other comparable Person designated by the Issuer and [reasonably acceptable to
the Insurer (so long as no Insurer Default has occurred and is continuing)],
notice of which designation will be given by the Issuer to the Indenture
Trustee, the Owner Trustee and the Servicer.

            "Rating Agency Condition" means, with respect to any action, that
each Rating Agency has been given 10 days (or such shorter period as will be
acceptable to each Rating Agency) prior notice thereof and that each of the
Rating Agencies has notified the Depositor, the Servicer, [the Insurer,] the
Indenture Trustee, the Owner Trustee and the Issuer in writing that such action
will not result in a reduction or withdrawal of the then current rating of the
Notes.

                                       13
<PAGE>

            "Receivable" means any Contract listed on Schedule A (which Schedule
may be in the form of microfiche or a disk).

            "Receivable Files" means the documents specified in Section 3.3.

            "Record Date" has the meaning set forth in the Indenture.

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

            "Required Pro Forma Class A Note Balance" means, with respect to any
Distribution Date, a dollar amount equal to the product of (x) __% and (y) the
Pool Balance as of the end of the prior Collection Period.

            "Schedule of Receivables" means the schedule of all motor vehicle
retail installment sale contracts, installment loan contracts and note and
security agreements originally held as part of the Trust which is attached as
Schedule A.

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

            "Scheduled Receivables Payment" means, with respect to any
Collection Period for any Receivable, the amount set forth in the Receivable as
required to be paid by the Obligor in the Collection Period. If, after the
Closing Date, the Obligor's obligation under a Receivable with respect to a
Collection Period is modified so as to differ from the amount specified in the
Receivable as a result of (i) the order of a court in an insolvency proceeding
involving the Obligor, (ii) pursuant to the Servicemembers Civil Relief Act or
(iii) modifications or extensions of the Receivable permitted by Section 4.2(b),
the Scheduled Receivables Payment with respect to such Collection Period will
refer to the Obligor's payment obligation with respect to the Collection Period
as so modified.

            "Securities" means, collectively, the Class A Notes, the Class B
Notes and the Certificates.

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

            "Servicer" means Triad as the servicer of the Receivables, and each
successor Servicer pursuant to Section 9.3.

            "Servicer Termination Event" means an event specified in Section
9.1.

            "Servicer's Certificate" means an Officer's Certificate delivered
pursuant to Section 4.9, substantially in the form of Exhibit A.

            "Servicing Fee" has the meaning specified in Section 4.8.

            "Servicing Fee Rate" means ___% per annum.

                                       14
<PAGE>

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

            "Spread Account" means the account designated as such, established
and maintained pursuant to Section 5.5.

            "Spread Account Draw Amount" means, for any Determination Date, the
amount, after taking into account the application on the Distribution Date of
Available Funds for the related Collection Period, equal to any shortfall in the
payment of amounts described in clauses (i) through (vii) of Section 5.7(a).

            "Spread Account Initial Deposit" means $________.

            "Spread Account Requirement" means, with respect to the Closing
Date, the Spread Account Initial Deposit and with respect to any Distribution
Date thereafter, an amount equal to the greater of (x) ___% of the Aggregate
Principal Balance at the end of the prior Collection Period and (y) ___% of the
Original Pool Balance or, if a Spread Cap Event [(as such term is defined in the
Insurance Agreement)] has occurred and is continuing, the greater of (a) ___% of
the Aggregate Principal Balance at the end of the prior Collection Period and
(b) ___% of the Original Pool Balance.

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

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

            "Step-Down Amount" means, with respect to any Distribution Date, the
excess, if any, of (x) the Required Pro Forma Class A Note Balance over (y) the
Pro Forma Class A Note Balance on such Distribution Date, calculated for this
definition only without deduction for any Step-Down Amount (i.e., assuming that
the entire amount described in clause (x) of the definition of "Class A
Noteholders' Monthly Principal Distributable Amount" is distributed as principal
on the Class A Notes).

            "Supplemental Servicing Fee" means, with respect to any Collection
Period, all administrative fees, expenses and charges paid by or on behalf of
Obligors, including late fees, prepayment fees, extension fees and liquidation
fees collected on the Receivables during the Collection Period and any expenses
incurred by the Servicer in connection with repossession and liquidation of the
Financed Vehicle.

            "Third-Party Lender" means an entity that originated a loan to a
consumer or was the original assignee of a motor vehicle retail installment sale
contract from a dealer for the purchase of a motor vehicle and sold the loan or
motor vehicle retail installment sale contract to Triad pursuant to an Auto Loan
Purchase and Sale Agreement.

                                       15
<PAGE>

            "Third-Party Lender Assignment" means, with respect to a Receivable,
the assignment executed by a Third-Party Lender conveying the Receivable to
Triad.

            "Triad" means Triad Financial Corporation, a California corporation,
and its successors and assigns.

            "Trust" means the Issuer.

            "Trust Account Property" means the Trust Accounts, all amounts and
investments held from time to time in any Trust Account (whether in the form of
deposit accounts, physical property, book-entry securities, uncertificated
securities or otherwise), and all proceeds of the foregoing.

            "Trust Accounts" has the meaning assigned thereto in Section 5.1.

            "Trust Agreement" means the Trust Agreement dated as of _______,
200_ among Triad, as the Administrator, the Depositor and the Owner Trustee, as
amended and restated as of ______, 200_ as the same may be amended and
supplemented from time to time.

            "Trust Officer" means, (i) in the case of the Indenture Trustee, the
chairman or vice-chairman of the board of directors, any managing director, the
chairman or vice-chairman of the executive committee of the board of directors,
the president, any vice president, assistant vice president, the secretary, any
assistant secretary, the treasurer, any assistant treasurer, the cashier, any
assistant cashier, any trust officer or assistant trust officer, the controller
and any assistant controller or any other officer of the Indenture Trustee
customarily performing functions similar to those performed by any of the above
designated officers and also means, with respect to a particular corporate trust
matter, any other officer to whom such matter is referred because of such
officer's knowledge of and familiarity with the particular subject, and (ii) in
the case of the Owner Trustee, any officer in the corporate trust office of the
Owner Trustee or any agent of the Owner Trustee under a power of attorney with
direct responsibility for the administration of any of the Basic Documents on
behalf of the Owner Trustee.

            "Trust Property" means all right, title and interest of the Trust in
and to the property and rights assigned to the Trust pursuant to Section 2.1
hereof, all funds on deposit from time to time in the Trust Accounts (including
all Eligible Investments therein and all proceeds therefrom) and all other
property of the Trust from time to time, including any rights of the Owner
Trustee and the Trust under this Agreement.

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

      SECTION 1.2. Other Definitional Provisions.

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

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

                                       16
<PAGE>

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

      (d) The words "hereof," "herein," "hereunder" and words of similar import
when used in this Agreement will refer to this Agreement as a whole and not to
any particular provision of this Agreement; Section, Schedule and Exhibit
references contained in this Agreement are references to Sections, Schedules and
Exhibits in or to this Agreement unless otherwise specified; and the term
"including" means "including without limitation."

      (e) The definitions contained in this Agreement are applicable to the
singular as well as the plural forms of such terms and to the masculine as well
as to the feminine and neuter genders of such terms.

      (f) 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.

                                   ARTICLE II

                            Conveyance of Receivables

      SECTION 2.1. Conveyance of Receivables. In consideration of the Issuer's
delivery to or upon the order of the Depositor on the Closing Date of the Notes
and the Certificates and the other amounts to be distributed from time to time
to the order of the Depositor in accordance with the terms of this Agreement,
the Depositor does hereby sell, transfer, assign, set over and otherwise convey
to the Issuer, without recourse, all right, title and interest of the Depositor
in and to:

      (a) the Receivables and all moneys received thereon after the Cutoff Date;

      (b) an assignment of the security interests in the Financed Vehicles
granted by Obligors pursuant to the Receivables and any other interest of the
Originator or the Depositor in such Financed Vehicles;

      (c) any proceeds and the right to receive proceeds with respect to the
Receivables from claims on any physical damage, credit life or disability
insurance policies covering Financed Vehicles or Obligors and any proceeds from
the liquidation of the Receivables;

                                       17
<PAGE>

      (d) the right to cause the related Dealer or Third-Party Lender to
repurchase Receivables pursuant to a Dealer Agreement or an Auto Loan Purchase
and Sale Agreement, respectively, as a result of a breach of representation or
warranty in the related Dealer Agreement or Auto Loan Purchase and Sale
Agreement, respectively;

      (e) all rights, if any, to refunds for the costs of Service Contracts on
the related Financed Vehicles;

      (f) the related Receivable Files;

      (g) all of the Depositor's right, title and interest in its rights and
benefits, but none of its obligations or burdens, under the Purchase Agreement,
including the Depositor's rights under the Purchase Agreement, to enforce the
delivery requirements, representations and warranties and the cure and
repurchase obligations of Triad under the Purchase Agreement; and

      (h) the proceeds of any and all of the foregoing.

            It is the intention of the Depositor that the transfer and
assignment contemplated by this Agreement constitutes a sale of the Receivables
and Other Conveyed Property from the Depositor to the Issuer and the beneficial
interest in and title to the Receivables and the Other Conveyed Property will
not be part of the Depositor's estate in the event of the filing of a bankruptcy
petition by or against the Depositor under any bankruptcy law. In the event
that, notwithstanding the intent of the Depositor, the transfer and assignment
contemplated hereby is held by a court of competent jurisdiction not to be a
sale, this Agreement will constitute a grant of a security interest in the
property referred to in this Section to the Issuer for the benefit of the
Indenture Trustee, the Noteholders [and the Insurer].

      SECTION 2.2. [Reserved].

      SECTION 2.3. Further Encumbrance of Trust Property.

      (a) Immediately upon the conveyance to the Trust by the Depositor of the
Trust Property, all right, title and interest of the Depositor in and to such
item of Trust Property will terminate, and all such right, title and interest
will vest in the Trust, in accordance with the Trust Agreement and the Statutory
Trust Statute.

      (b) Immediately upon the vesting of the Trust Property in the Trust, the
Trust will have the sole right to pledge or otherwise encumber such Trust
Property. Pursuant to the Indenture, the Trust will grant a security interest in
the Trust Property to the Indenture Trustee securing the repayment of the Notes
[and the Issuer's obligations to the Insurer]. The Certificates will represent
the beneficial ownership interest in the Trust Property, and the
Certificateholders will be entitled to receive distributions with respect
thereto as set forth herein.

      (c) Following the payment in full of the Notes and the release and
discharge of the Indenture, all covenants of the Issuer under Article III of the
Indenture will, until payment in full of the Certificates, remain as covenants
of the Issuer for the benefit of the Certificateholders, enforceable by the
Certificateholders to the same extent as such covenants were enforceable by the
Noteholders prior to the discharge of the Indenture. Any rights of the Indenture
Trustee under Article III of the Indenture, following the discharge of the
Indenture, will vest in Certificateholders.

                                       18
<PAGE>

      (d) The Indenture Trustee will, at such time as there are no Notes
outstanding and all sums due to the Indenture Trustee, [the Insurer] and the
Backup Servicer pursuant to the Indenture and this Agreement have been paid,
release any remaining portion of the Trust Property to the Certificateholder.

                                  ARTICLE III

                                 The Receivables

      SECTION 3.1. Representations and Warranties. The Depositor hereby conveys
its rights, title and interest in and to the representations and warranties made
by the Originator in respect of the Receivables pursuant to the Purchase
Agreement and this Agreement.

      SECTION 3.2. Repurchase upon Breach of Representations and Warranties.

      (a) The Depositor, the Servicer, [the Insurer,] the Indenture Trustee or
the Trust, as the case may be, will inform the other parties to this Agreement
and Triad promptly, by notice in writing, upon the discovery of any breach of
the representations and warranties referenced in Section 3.1 and in Schedule B
hereto. As of the last day of the second (or, if Triad so elects, the first)
month following the discovery by Triad or receipt by Triad of notice of such
breach, unless such breach is cured by such date, Triad will repurchase any
Receivable in which the interests of the Noteholders [or the Insurer] are
materially and adversely affected by any such breach as of such date. The
"second month" will mean the month following the month in which discovery occurs
or notice is given, and the "first month" will mean the month in which discovery
occurs or notice is given.

      In consideration of and simultaneously with the repurchase of the
Receivable, Triad will remit to the Collection Account the Purchase Amount in
the manner specified in Section 5.6 and the Issuer and the Indenture Trustee
will execute such assignments and other documents reasonably requested by such
person in order to effect such repurchase. The Issuer and the Indenture Trustee
will take such steps in assigning such Receivable to Triad as are described in
Section 5.2 of the Purchase Agreement.

      The sole remedy of the Issuer, the Owner Trustee, the Indenture Trustee or
the Noteholders with respect to a breach of representations and warranties
pursuant to Section 3.1 and the agreement contained in this Section will be the
repurchase of Receivables pursuant to this Section, subject to the conditions
contained herein or to enforce the obligation of Triad to repurchase such
Receivables pursuant to the Purchase Agreement. Neither the Owner Trustee nor
the Indenture Trustee will have a duty to conduct any affirmative investigation
as to the occurrence of any conditions requiring the repurchase of any
Receivable pursuant to this Section.

            In addition to the foregoing and notwithstanding whether the related
Receivable has been purchased by Triad, Triad will indemnify the Trust, the
Indenture Trustee, the Backup Servicer, and the officers, directors, agents and
employees thereof, [the Insurer] and the Noteholders against all costs,
expenses, losses, damages, claims and liabilities, including reasonable fees and
expenses of counsel, which may be asserted against or incurred by any of them as
a result of third party claims arising out of the events or facts giving rise to
such breach.

                                       19
<PAGE>

      (b) Pursuant to Section 2.1, the Depositor conveyed to the Trust all of
the Depositor's right, title and interest in its rights and benefits, but none
of its obligations or burdens, under the Purchase Agreement including the
Depositor's rights under the Purchase Agreement to enforce the delivery
requirements, representations and warranties, indemnities and the cure or
repurchase obligations of Triad thereunder. The Depositor hereby represents and
warrants to the Trust that such assignment is valid and enforceable against the
Depositor.

      SECTION 3.3. Custody of Receivables Files.

      (a) In connection with the sale, transfer and assignment of the
Receivables and the Other Conveyed Property to the Trust pursuant to this
Agreement, the Indenture Trustee hereby revocably appoints the Custodian, and
the Custodian hereby accepts such appointment, to act as the agent of the
Indenture Trustee as custodian of the following documents or instruments in its
possession or in the possession of third party vendors on behalf of the
Custodian which will be delivered to the Custodian as agent of the Indenture
Trustee on or before the Closing Date (with respect to each Receivable):

            (i) the fully executed original of the contract related to such
      Receivable (together with any agreements modifying the Receivable,
      including any extension agreements);

            (ii) the original certificate of title (when received) indicating
      that the Financed Vehicle is owned by the Obligor and subject to the
      interest of Triad as first lienholder or secured party (including any Lien
      Certificate received by Triad) or that it has been assigned to Triad as
      first lienholder or secured party, or, if such original certificate of
      title has not yet been received, a copy of the application therefor,
      showing Triad as secured party and otherwise such related documents, if
      any, that Triad keeps on file in accordance with its customary procedures;
      and

            (iii) in connection with Receivable Files pertaining to retail
      installment sale contracts, the original credit application, or a copy
      thereof (collectively, the "Receivable Files").

      (b) Upon payment in full of any Receivable, the Servicer will notify the
Custodian pursuant to a certificate of an officer of the Servicer (which
certificate will include a statement to the effect that all amounts received in
connection with such payments which are required to be deposited in the
Collection Account pursuant to Section 4.1 have been so deposited) and will
request delivery of the Receivable File to the Servicer. From time to time as
appropriate for servicing and enforcing any Receivable, the Custodian will, upon
written request of an officer of the Servicer and delivery to the Custodian of a
receipt signed by such officer, cause the related Receivable File to be released
to the Servicer. The Servicer's receipt of a Receivable File will obligate the
Servicer to return the Receivable File to the Custodian when its need by the
Servicer has ceased unless the Receivable is repurchased as described in Section
3.2 or 4.7.

      (c) The Custodian, or its third-party vendor, will hold the Receivable
Files on behalf of the Indenture Trustee and will maintain such accurate and
complete accounts, records and computer systems pertaining to each Receivable
File as will enable the Indenture Trustee to comply with the terms and
conditions of this Agreement. For so long as Triad is the Custodian, the
Custodian will maintain the Receivable Files at (i) its office located at 7711
Center Avenue, Suite 100, Huntington Beach, California 92647, (ii) with a
third-party service provider identified on Schedule D hereto, as it may be
modified from time to time by the Custodian [with the consent of the Insurer,
which will not

                                       20
<PAGE>
be unreasonably withheld, or (iii) subject to the prior written consent of the
Insurer, so long as no Insurer Default has occurred and is continuing, at such
other office as will from time to time be identified to the Indenture Trustee
and [the Insurer]. Each Receivable will be identified on the books and records
of the Custodian in a manner that (i) indicates that the Receivables are held by
the Custodian on behalf of the Indenture Trustee and (ii) is otherwise
necessary, as reasonably determined by the Custodian. So long as [Indenture
Trustee] is not the Custodian, the Custodian will conduct, or cause to be
conducted, periodic physical inspections of the Receivable Files held by it, and
of the related accounts, records and computer systems, in such a manner as will
enable the Indenture Trustee[, the Insurer] and the Custodian to verify the
accuracy of the Custodian's inventory and recordkeeping. Such inspections will
be conducted at such times, in such manner and by such persons including
independent accountants, as [the Insurer or] the Indenture Trustee may
reasonably request and the cost of such inspections will be borne directly by
the Custodian, so long as [Indenture Trustee] is not the Custodian, and not by
the Indenture Trustee, but such inspections are not to take place more than once
per year. The Custodian will promptly report to [the Insurer and] the Indenture
Trustee any failure on its part to hold the Receivable Files and maintain its
accounts, records and computer systems as herein provided and promptly take
appropriate action to remedy any such failure. Upon request, the Custodian will,
at the expense of the party making such request, make copies or other electronic
file records (e.g., diskettes, CDs, etc.) (the "Copies") of the Receivable Files
and will deliver such Copies to the Indenture Trustee and the Indenture Trustee
will hold such Copies on behalf of the Issuer Secured Parties.

      (d) The Custodian will, subject only to the Custodian's security
requirements applicable to its own employees having access to similar records
held by the Custodian, which requirements will be consistent with the practices
of an institution that maintains custody of Receivable Files for its own
account, and at such times as may be reasonably imposed by the Custodian, permit
only [the Insurer and] the Indenture Trustee or their duly authorized
representatives, attorneys or auditors to inspect the Receivable Files and the
related accounts, records, and computer systems maintained by the Custodian
pursuant hereto at such times as [the Insurer or] the Indenture Trustee may
reasonably request during normal business hours.

      (e) The Custodian will be deemed to have received proper instructions with
respect to the Receivable Files upon its receipt of written instructions signed
by a Responsible Officer of the Indenture Trustee. Such instructions may be
general or specific in terms. [The Indenture Trustee will provide a copy of any
such instructions to the Insurer.]

      (f) The Custodian will indemnify the Issuer, the Owner Trustee, the Backup
Servicer, [the Insurer,] the Noteholders and the Indenture Trustee for any and
all liabilities, obligations, losses, damage, payments, costs or expenses of any
kind whatsoever (including the fees and expenses of counsel) that may be imposed
on, incurred or asserted against such Persons and their respective officers,
directors, employees, agents, attorneys and successors and assigns as the result
of any act or omission in any way relating to the maintenance and custody by the
Custodian or any third-party vendor of the Receivable Files; provided, however,
that the Custodian will not be liable for any portion of any such liabilities,
obligations, losses, damages, payments, costs or expenses due to the willful
misfeasance, bad faith or gross negligence of the Issuer, the Owner Trustee, the
Backup Servicer[, the Insurer] or the Indenture Trustee or the officers,
directors, employees and agents thereof. In no event will the Custodian be
liable to any third party for acts or omissions of the Custodian other than as
specifically set forth in this Section.

                                       21
<PAGE>

                                   ARTICLE IV

                   Administration and Servicing of Receivables

      SECTION 4.1. Duties of the Servicer

      (a) The Servicer is hereby authorized to act as agent for the Trust and in
such capacity will manage, service, administer and make collections on the
Receivables (other than Purchased Receivables after the date of purchase thereof
by Triad or the Servicer), and perform the other actions required by the
Servicer under this Agreement. The Servicer agrees that its servicing of the
Receivables will be carried out in accordance with customary and usual
procedures of institutions which service motor vehicle retail installment sales
contracts and, to the extent more exacting, the degree of skill and attention
that the Servicer exercises from time to time with respect to all comparable
motor vehicle receivables that it services for itself or others. In performing
such duties, so long as Triad is the Servicer, it will substantially comply with
the policies and procedures described on Schedule C, as such policies and
procedures may be updated from time to time. The Servicer's duties will include
collection and posting of all payments, responding to inquiries of Obligors on
the Receivables, investigating delinquencies, sending payment coupons or
statements to Obligors, reporting any required tax information to Obligors,
monitoring the collateral, complying with the terms of the Blocked Account
Agreement, accounting for collections and furnishing monthly and annual
statements to the Indenture Trustee [and the Insurer] with respect to
distributions, and performing the other duties specified herein.

      (b) The Servicer will also administer and enforce all rights and
responsibilities of the holder of the Receivables provided for in the Dealer
Agreements and Auto Loan Purchase and Sale Agreements (and will maintain
possession of the Dealer Agreements and Auto Loan Purchase and Sale Agreements,
to the extent it is necessary to do so), the Dealer Assignments, the Third-Party
Lender Assignments and the Insurance Policies, to the extent that such Dealer
Agreements, Auto Loan Purchase and Sale Agreements, Dealer Assignments,
Third-Party Lender Assignments and Insurance Policies relate to the Receivables,
the Financed Vehicles or the Obligors. To the extent consistent with the
standards, policies and procedures otherwise required hereby, the Servicer will
follow its customary standards, policies, and procedures and will have full
power and authority, acting alone, to do any and all things in connection with
such managing, servicing, administration and collection that it may deem
necessary or desirable. Without limiting the generality of the foregoing, the
Servicer is hereby authorized and empowered by the Trust to execute and deliver,
on behalf of the Trust, any and all instruments of satisfaction or cancellation,
or of partial or full release or discharge, and all other comparable
instruments, with respect to the Receivables and with respect to the Financed
Vehicles; provided, however, that notwithstanding the foregoing, the Servicer
will not, except pursuant to an order from a court of competent jurisdiction,
release an Obligor from payment of any unpaid amount under any Receivable or
waive the right to collect the unpaid balance of any Receivable from the Obligor
except in accordance with the Servicer's customary practices.

      (c) The Servicer is hereby authorized to commence, in its own name or in
the name of the Trust, a legal proceeding to enforce a Receivable pursuant to
Section 4.3 or to commence or participate in any other legal proceeding
(including a bankruptcy proceeding) relating to or involving a Receivable, an
Obligor or a Financed Vehicle. If the Servicer commences or participates in such
a legal proceeding in its own name, the Trust will thereupon be deemed to have
automatically assigned such Receivable to the Servicer solely for purposes of
commencing or participating in any such proceeding as a party or claimant, and
the Servicer is authorized and empowered by the Trust to execute and deliver in
the Servicer's name any notices, demands, claims, complaints, responses,
affidavits or other documents or instruments in connection with any such
proceeding. The Indenture

                                       22
<PAGE>

Trustee and the Owner Trustee will furnish the Servicer with any limited powers
of attorney and other documents which the Servicer may reasonably request and
which the Servicer deems necessary or appropriate and take any other steps which
the Servicer may deem necessary or appropriate to enable the Servicer to carry
out its servicing and administrative duties under this Agreement.

      SECTION 4.2. Collection of Receivable Payments; Modifications of
Receivables; Blocked Account Agreement.

      (a) Consistent with the standards, policies and procedures required by
this Agreement, the Servicer will make reasonable efforts to collect all
payments called for under the terms and provisions of the Receivables as and
when the same will become due, and will follow such collection procedures as it
follows with respect to all comparable motor vehicle receivables that it
services for itself or others and otherwise act with respect to the Receivables,
the Dealer Agreements, the Dealer Assignments, the Auto Loan Purchase and Sale
Agreements, the Third-Party Lender Assignments, the Insurance Policies and the
Other Conveyed Property in such manner as will, in the reasonable judgment of
the Servicer, maximize the amount to be received by the Trust with respect
thereto. The Servicer is authorized in its discretion to waive any prepayment
charge, late payment charge or any other similar fees that may be collected in
the ordinary course of servicing any Receivable.

      (b) The Servicer may at any time agree to a modification or amendment of a
Receivable (i) in order to change the Obligor's regular due date in accordance
with its servicing policies and procedures, (ii) in order to re-amortize the
Scheduled Receivables Payments on the Receivable following a partial prepayment
of principal or (iii) as may be required by law, in accordance with its
customary procedures if the Servicer believes in good faith that such extension,
modification or amendment is necessary to avoid a default on such Receivable,
will maximize the amount to be received by the Trust with respect to such
Receivable, and is otherwise in the best interests of the Trust; provided,
however, that in no event may a Receivable be extended beyond the Collection
Period immediately preceding the last Final Scheduled Distribution Date.

      (c) The Servicer may grant payment extensions on, or other modifications
or amendments to, a Receivable (in addition to those modifications permitted by
Section 4.2(b)) in accordance with its customary procedures if the Servicer
believes in good faith that such extension, modification or amendment is
necessary to avoid a default on such Receivable, will maximize the amount to be
received by the Trust with respect to such Receivable, and is otherwise in the
best interests of the Trust; provided, however, that:

            (i) The aggregate period of all extensions on a Receivable does not
      exceed eight months;

            (ii) In no event may a Receivable be extended beyond the Collection
      Period immediately preceding the latest Final Scheduled Distribution Date;

            (iii) The average Monthly Extension Rate for any three consecutive
      Collection Periods does not exceed 4%;

            (iv) The Servicer may not amend or modify a Receivable (except as
      provided in Section 4.2(b) and this Section 4.2(c) or as otherwise
      required by law) without the consent of [the Insurer, so long as no
      Insurer Default has occurred and is continuing, or] the Majority
      Noteholders [(if an Insurer Default has occurred and is continuing]; and

                                       23
<PAGE>

            (v) In no event may a Receivable be extended more than once within a
      twelve month period.

            With respect to Section 4.2(c)(iii), in the event the average of the
Monthly Extension Rates calculated with respect to three consecutive Collection
Periods exceeds 4% (which information will be set forth in the related
Servicer's Certificate), the Servicer will, so long as the Servicer is not
[Indenture Trustee], acting as Backup Servicer, on the third such Accounting
Date, purchase from the Trust the Receivables with respect to which payment had
been extended (starting with the Receivables most recently so extended) in an
aggregate Principal Balance equal to the product of (i) the excess of such
average of Monthly Extension Rates over 4% and (ii) the Aggregate Principal
Balance, and pay the related Purchase Amount on the related Determination Date;
provided, however, that in the event the Backup Servicer will be acting as
Servicer hereunder, the foregoing sentence will apply only in respect of
Receivables as to which payments had been extended by such Backup Servicer.

      (d) The Servicer will use its best efforts to notify or direct Obligors to
make all payments on the Receivables, whether by check or by direct debit of the
Obligor's bank account, to be made directly to one or more Processing Banks
pursuant to a Blocked Account Agreement. The Servicer will use its best efforts
to notify or direct any Processing Bank to deposit all payments on the
Receivables in the Lockbox Account no later than the Business Day after receipt,
and to cause all amounts credited to the Lockbox Account on account of such
payments to be transferred to the Collection Account no later than the second
Business Day after receipt of available funds with respect to such payments. The
Lockbox Account will be a demand deposit account held by the Processing Bank.

            On the Closing Date, the Servicer will deposit or cause to be
deposited in immediately available funds into the Collection Account all amounts
collected with respect to the Receivables from the Cutoff Date to the fourth
(4th) Business Day preceding the Closing Date. As soon as possible thereafter
and in accordance with the provisions of this Agreement, all amounts collected
with respect to the Receivables from such date to the Closing Date will be
deposited into the Collection Account.

            Notwithstanding any Blocked Account Agreement, or any of the
provisions of this Agreement relating to the Blocked Account Agreement, the
Servicer will remain obligated and liable to the Trust, the Indenture Trustee
and Noteholders for servicing and administering the Receivables and the Other
Conveyed Property in accordance with the provisions of this Agreement without
diminution of such obligation or liability by virtue thereof; provided, however,
that the foregoing will not apply to any Backup Servicer for so long as a
Processing Bank is performing its obligations pursuant to the terms of a Blocked
Account Agreement.

            If the Servicer is terminated, the successor Servicer will assume
all of the rights and obligations of the outgoing Servicer under the Blocked
Account Agreement subject to the terms hereof. In such event, the successor
Servicer will be deemed to have assumed all of the outgoing Servicer's interest
therein and to have replaced the outgoing Servicer as a party to each such
Blocked Account Agreement to the same extent as if such Blocked Account
Agreement had been assigned to the successor Servicer, except that the outgoing
Servicer will not thereby be relieved of any liability or obligations on the
part of the outgoing Servicer to the Processing Bank under such Blocked Account
Agreement. The outgoing Servicer will, upon request of the Indenture Trustee,
but at the expense of the outgoing Servicer, deliver to the successor Servicer
all documents and records relating

                                       24
<PAGE>

to each such Blocked Account Agreement and an accounting of amounts collected
and held by the Processing Bank and otherwise use its best efforts to effect the
orderly and efficient transfer of any Blocked Account Agreement to the successor
Servicer. In the event that the [Insurer (so long as no Insurer Default has
occurred and is continuing) or] the Majority Noteholders [(if an Insurer Default
has occurred and is continuing)] elects to change the identity of the Processing
Bank, the outgoing Servicer, at its expense, will cause the Processing Bank to
deliver, at the direction of the [Insurer (so long as no Insurer Default has
occurred and is continuing) or] the Majority Noteholders [(if an Insurer Default
has occurred and is continuing)] to the Indenture Trustee or a successor
Processing Bank, all documents and records relating to the Receivables and all
amounts held (or thereafter received) by the Processing Bank (together with an
accounting of such amounts) and will otherwise use its best efforts to effect
the orderly and efficient transfer of the lockbox arrangements and the Servicer
will notify the Obligors to make payments to the Lockbox established by the
successor.

      (e) The Servicer will remit all payments by or on behalf of the Obligors
received in the form of checks with payment coupons directly by the Servicer to
the Processing Bank for deposit into the Collection Account, in either case, and
as soon as practicable, but in no event later than the second Business Day after
receipt thereof. Other payments received by each of the Servicer, Triad and the
Depositor will be deposited into a local servicing account for processing
immediately upon receipt, and then transferred in immediately available funds to
the Lockbox Account for deposit to the Collection Account no later than the
second (2nd) Business Day after receipt of available amounts.

      SECTION 4.3. Realization upon Receivables.

      (a) Consistent with the standards, policies and procedures required by
this Agreement, the Servicer will use commercially reasonable efforts to
repossess (or otherwise comparably convert the ownership of) and liquidate any
Financed Vehicle securing a Receivable with respect to which the Servicer has
determined that payments thereunder are not likely to be resumed, as soon as is
practicable after default on such Receivable but in no event later than the date
on which 10% or more of a Scheduled Receivables Payment has become 91 days
delinquent; provided, however, that the Servicer may elect not to repossess a
Financed Vehicle within such time period if in its good faith judgment it
determines that the proceeds ultimately recoverable with respect to such
Receivable would be increased by forbearance. The Servicer is authorized to
follow such customary practices and procedures as it will deem necessary or
advisable, consistent with the standard of care required by Section 4.1, which
practices and procedures may include reasonable efforts to realize upon any
recourse to Dealers and Third-Party Lenders, the sale of the related Financed
Vehicle at public or private sale, the submission of claims under an Insurance
Policy and other actions by the Servicer in order to realize upon such a
Receivable. The Servicer will have the discretion to retain or sell to a
third-party any of the Liquidated Receivables. The foregoing is subject to the
provision that, in any case in which the Financed Vehicle will have suffered
damage, the Servicer will not expend funds in connection with any repair or
towards the repossession of such Financed Vehicle unless it will determine in
its discretion that such repair and/or repossession will increase the proceeds
of liquidation of the related Receivable by an amount greater than the amount of
such expenses. All amounts received upon liquidation of a Financed Vehicle will
be remitted by the Servicer to the Collection Account as soon as practicable,
but in no event later than the second Business Day after receipt of available
funds thereof. The Servicer will be entitled to recover all reasonable expenses
incurred by it in the course of repossessing and liquidating a Financed Vehicle
into cash proceeds, as provided in Section 5.7(a) or out of the cash proceeds of
such Financed Vehicle, any deficiency obtained from the Obligor or any amounts
received from the related Dealer or Third-Party Lender, which amounts in
reimbursement may be retained by the Servicer (and will not be required to be

                                       25
<PAGE>

deposited as provided in Section 4.2(e)) to the extent of such expenses. The
Servicer will pay on behalf of the Trust any personal property taxes assessed on
repossessed Financed Vehicles. The Servicer will be entitled to reimbursement of
any such tax from Net Liquidation Proceeds with respect to such Receivable.

      (b) If the Servicer elects to commence a legal proceeding to enforce a
Dealer Agreement, Auto Loan Purchase and Sale Agreement, Dealer Assignment or
Third-Party Lender Assignment, the act of commencement will be deemed to be an
automatic assignment from the Trust to the Servicer of the rights under such
Dealer Agreement, Auto Loan Purchase and Sale Agreement, Dealer Assignment or
Third-Party Lender Assignment for purposes of collection only. If, however, in
any enforcement suit or legal proceeding it is held that the Servicer may not
enforce a Dealer Agreement, Auto Loan Purchase and Sale Agreement, Dealer
Assignment or Third-Party Lender Assignment on the grounds that it is not a real
party in interest or a Person entitled to enforce the Dealer Agreement, Auto
Loan Purchase and Sale Agreement, Dealer Assignment or Third-Party Lender
Assignment, the Owner Trustee and/or the Indenture Trustee, at the Servicer's
expense, will take such steps as the Servicer deems reasonably necessary to
enforce the Dealer Agreement, Auto Loan Purchase and Sale Agreement, Dealer
Assignment or Third-Party Lender Assignment, including bringing suit in its name
or the name of the Trust and the Owner Trustee and/or the Indenture Trustee for
the benefit of the Issuer Secured Parties. All amounts recovered will be
remitted directly by the Servicer as provided in Section 4.2(e).

      SECTION 4.4. Insurance.

      (a) The Servicer will require, in accordance with its customary servicing
policies and procedures, that each Financed Vehicle be insured by the related
Obligor under the Insurance Policies referred to in Paragraph 24 of the Schedule
of Representations and Warranties. Each Receivable requires the Obligor to
maintain such physical loss and damage insurance, naming Triad and its
successors and assigns as additional insureds, and permits the holder of such
Receivable to obtain physical loss and damage insurance at the expense of the
Obligor if the Obligor fails to maintain such insurance. If the Servicer
determines that an Obligor has failed to obtain or maintain a physical loss and
damage Insurance Policy covering the related Financed Vehicle as described in
Paragraph 24 (including during the repossession of such Financed Vehicle) the
Servicer may enforce the rights of the holder of the Receivable under the
Receivable to require the Obligor to obtain such physical loss and damage
insurance in accordance with its customary servicing policies and procedures.
The Servicer may, at its sole option, maintain a vendor's single interest or
other collateral protection insurance policy with respect to all Financed
Vehicles ("Collateral Insurance") which policy by its terms insures against
physical loss and damage in the event any Obligor fails to maintain physical
loss and damage insurance with respect to the related Financed Vehicle. The
parties acknowledge that the Servicer does not now have, nor does it intend to
obtain, Collateral Insurance. All policies of Collateral Insurance will be
endorsed with clauses providing for loss payable to the Servicer. Costs incurred
by the Servicer in maintaining such Collateral Insurance will be paid by the
Servicer.

      (b) The Servicer may, at its sole option, if an Obligor fails to obtain or
maintain a physical loss and damage Insurance Policy, obtain insurance with
respect to the related Financed Vehicle and advance on behalf of such Obligor,
as required under the terms of the insurance policy, the premiums for such
"force-placed" insurance. The parties hereto acknowledge that the Servicer does
not now have, nor does it intend to obtain, force-placed insurance. All policies
of force-placed insurance will be endorsed with clauses providing for loss
payable to the Servicer. Any cost incurred

                                       26
<PAGE>

by the Servicer in maintaining such force-placed insurance will only be
recoverable out of premiums paid by the Obligors or Net Liquidation Proceeds
with respect to the Receivable, as provided in Section 4.4(c).

            In connection with any force-placed insurance obtained hereunder,
the Servicer may, in the manner and to the extent permitted by applicable law,
require the Obligors to repay the entire premium to the Servicer. In no event
will the Servicer include the amount of the premium in the Amount Financed under
the Receivable. "Insurance add-on amounts," which are the premiums charged to
Obligors in the event that the Servicer obtains force-placed insurance, with
respect to any Receivable will be treated as a separate obligation of the
Obligor and will not be added to the Principal Balance of such Receivable, and
amounts allocable thereto will not be available for distribution on the Notes
and the Certificates. The Servicer will retain and separately administer the
right to receive payments from Obligors with respect to insurance add-on amounts
or rebates of force-placed insurance premiums. If an Obligor makes a payment
with respect to a Receivable having force-placed insurance, but the Servicer is
unable to determine whether the payment is allocable to the Receivable or to the
insurance add-on amount, the payment will be applied first to any unpaid
Scheduled Receivables Payments and then to the insurance add-on amount. Net
Liquidation Proceeds on any Receivable will be used first to pay the Principal
Balance and accrued interest on such Receivable and then to pay the related
insurance add-on amount. If an Obligor under a Receivable with respect to which
the Servicer has placed force-placed insurance fails to make scheduled payments
of such insurance add-on amount as due, and the Servicer has determined that
eventual payment of the insurance add-on amount is unlikely, the Servicer may,
but will not be required to, purchase such Receivable from the Trust for the
Purchase Amount on any subsequent Determination Date. Any such Receivable, and
any Receivable with respect to which the Servicer has placed force-placed
insurance which has been paid in full (excluding any insurance add-on amounts)
will be assigned to the Servicer.

      (c) The Servicer may sue to enforce or collect upon the Insurance
Policies, in its own name, if possible, or as agent of the Trust. If the
Servicer elects to commence a legal proceeding to enforce an Insurance Policy,
the act of commencement will be deemed to be an automatic assignment of the
rights of the Trust under such Insurance Policy to the Servicer for purposes of
collection only. If, however, in any enforcement suit or legal proceeding it is
held that the Servicer may not enforce an Insurance Policy on the grounds that
it is not a real party in interest or a holder entitled to enforce the Insurance
Policy, the Owner Trustee and/or the Indenture Trustee, at the Servicer's
expense, will take such steps as the Servicer deems necessary to enforce such
Insurance Policy, including bringing suit in its name or the name of the Trust
and the Owner Trustee and/or the Indenture Trustee for the benefit of the
Noteholders.

      (d) The Servicer will cause itself and may cause the Indenture Trustee to
be named as named insured under all policies of Collateral Insurance.

      SECTION 4.5. Maintenance of Security Interests in Vehicles.

      (a) Consistent with the policies and procedures required by this
Agreement, the Servicer will take such steps on behalf of the Trust as are
necessary to maintain perfection of the security interest created by each
Receivable in the related Financed Vehicle, including obtaining the execution by
the Obligors and the recording, registering, filing, re-recording, re-filing,
and re-registering of all security agreements, financing statements and
continuation statements as are necessary to maintain the security interest
granted by the Obligors under the respective Receivables.

                                       27
<PAGE>

The Indenture Trustee hereby authorizes the Servicer, and the Servicer agrees,
to take any and all steps necessary to re-perfect such security interest on
behalf of the Trust as necessary because of the relocation of a Financed Vehicle
or for any other reason. In the event that the assignment of a Receivable to the
Trust is insufficient, without a notation on the related Financed Vehicle's
certificate of title, or without fulfilling any additional administrative
requirements under the laws of the state in which the Financed Vehicle is
located, to perfect a security interest in the related Financed Vehicle in favor
of the Trust, the Servicer agrees that Triad's designation as the secured party
on the certificate of title is in its capacity as Servicer as agent of the
Trust.

      (b) Upon the occurrence of [an Insurance Agreement Event of Default, the
Insurer may (so long as no Insurer Default has occurred and is continuing)
instruct the Indenture Trustee and the Servicer to take or cause to be taken,
or, if an Insurer Default has occurred and is continuing, upon the occurrence
of] a Servicer Termination Event, the Indenture Trustee and the Servicer will
take or cause to be taken such action as may, in the opinion of counsel to the
Controlling Party, be necessary to perfect or re-perfect the security interests
in the Financed Vehicles securing the Receivables in the name of the Trust by
amending the title documents of such Financed Vehicles or by such other
reasonable means as may, in the opinion of counsel to the Controlling Party, be
necessary or prudent.

            Triad hereby agrees to pay all expenses related to such perfection
or reperfection and to take all action necessary therefor. In addition, [prior
to the occurrence of an Insurance Agreement Event of Default,] the Controlling
Party may instruct the Servicer to take or cause to be taken such action as may,
in the opinion of counsel to the Controlling Party, be necessary to perfect or
re-perfect the security interest in the Financed Vehicles underlying the
Receivables in the name of the Trust, including by amending the title documents
of such Financed Vehicles or by such other reasonable means as may, in the
opinion of counsel to the Controlling Party, be necessary or prudent; provided,
however, that if the Controlling Party requests that the title documents be
amended [prior to the occurrence of an Insurance Agreement Event of Default],
the out-of-pocket expenses of the Servicer or the Indenture Trustee in
connection with such action will be reimbursed to the Servicer or the Indenture
Trustee, as applicable, by the Controlling Party. Triad hereby appoints the
Indenture Trustee as its attorney-in-fact to execute certificates of title or
any other documents, prepared by the Servicer, in the name and stead of Triad
(it being understood that and agreed that the Indenture Trustee has no
obligation to take such steps with respect to any perfection or reperfection,
except as pursuant to the Basic Documents to which it is a party and for which
Triad has paid all expenses) and the Indenture Trustee hereby accepts such
appointment.

      (c) Upon the occurrence of a Servicer Termination Event, at the option of
the Controlling Party, Triad shall be terminated as Custodian and all original
receivable contracts and related title documents must be transferred to a
successor custodian acceptable to the Controlling Party.

      SECTION 4.6. Covenants, Representations, and Warranties of Servicer. By
its execution and delivery of this Agreement, the Servicer makes the following
representations, warranties and covenants on which the Issuer relies in
accepting the Receivables, on which the Indenture Trustee relies in
authenticating the Notes [and on which the Insurer relies in issuing the Note
Policy].

      (a) The Servicer covenants as follows:

            (i) Liens in Force. The Financed Vehicle securing each Receivable
      will not be released in whole or in part from the security interest
      granted by the Receivable, except upon payment in full of the Receivable
      or as otherwise contemplated herein;

                                       28
<PAGE>

            (ii) No Impairment. The Servicer will do nothing to impair the
      rights of the Trust or the Noteholders in the Receivables, the Dealer
      Agreements, the Auto Loan Purchase and Sale Agreements, the Dealer
      Assignments, the Third-Party Lender Assignments, the Insurance Policies or
      the Other Conveyed Property except as otherwise expressly provided herein;

            (iii) No Amendments. The Servicer will not extend or otherwise amend
      the terms of any Receivable, except in accordance with Section 4.2; and

            (iv) Restrictions on Liens. The Servicer will not (i) create, incur
      or suffer to exist, or agree to create, incur or suffer to exist, or
      consent to cause or permit in the future (upon the happening of a
      contingency or otherwise) the creation, incurrence or existence of any
      Lien or restriction on transferability of the Receivables except for the
      Lien in favor of the Indenture Trustee for the benefit of the Noteholders
      [and Insurer], and the restrictions on transferability imposed by this
      Agreement or (ii) sign or file under the UCC of any jurisdiction any
      financing statement which names Triad or the Servicer as a debtor, or sign
      any security agreement authorizing any secured party thereunder to file
      such financing statement, with respect to the Receivables, except in each
      case any such instrument solely securing the rights and preserving the
      Lien of the Indenture Trustee, for the benefit of the Noteholders [and the
      Insurer].

      (b) The Servicer represents, warrants and covenants as of the Closing Date
as to itself that the representations and warranties set forth on the Schedule
of Representations attached hereto as Schedule B are true and correct, provided
that such representations and warranties contained therein and herein will not
apply to any entity other than Triad.

                                       29
<PAGE>
      SECTION 4.7. Purchase of Receivables Upon Breach of Covenant. Upon
discovery by any of the Servicer, [the Insurer,] the Trust or a Responsible
Officer of the Indenture Trustee of a breach of any of the representations,
warranties and covenants set forth in Sections 4.5(a) or 4.6, the party
discovering such breach will give prompt written notice to the others; provided,
however, that the failure to give any such notice will not affect any obligation
of Triad as Servicer under this Section 4.7. As of the second Accounting Date
following its discovery or receipt of notice of any breach of any
representation, warranty or covenant set forth in Sections 4.5(a) or 4.6 which
materially and adversely affects the interests of the Noteholders [or the
Insurer] in any Receivable (including any Liquidated Receivable) (or, at Triad's
election, the first Accounting Date so following) or the related Financed
Vehicle, Triad will, unless such breach has been cured in all material respects,
purchase from the Trust the Receivable affected by such breach and, on the
related Determination Date, Triad will pay the related Purchase Amount. It is
understood and agreed that the obligation of Triad to purchase any Receivable
(including any Liquidated Receivable) with respect to which such a breach has
occurred and is continuing will, if such obligation is fulfilled, constitute the
sole remedy against Triad for such breach available to [the Insurer,] the
Noteholders, the Owner Trustee or the Indenture Trustee; provided, however, that
Triad will indemnify the Trust, the Backup Servicer, [the Insurer,] the Owner
Trustee, the Indenture Trustee and the Noteholders from and against all costs,
expenses, losses, damages, claims and liabilities, including reasonable fees and
expenses of counsel, which may be asserted against or incurred by any of them as
a result of third party claims arising out of the events or facts giving rise to
such breach. The indemnification provided pursuant to this section will survive
the removal or resignation of the Indenture Trustee and or the Backup Servicer.
In no event shall [Indenture Trustee], in its capacity as the Backup Servicer or
successor Servicer, be obligated to repurchase any Receivable pursuant to this
Section 4.7.

      SECTION 4.8. Total Servicing Fee; Payment of Certain Expenses by Servicer.
On each Distribution Date, the Servicer will be entitled to receive out of the
Collection Account the Base Servicing Fee and any Supplemental Servicing Fee for
the related Collection Period (together, the "Servicing Fee") pursuant to
Section 5.7. The Servicer will be required to pay all expenses incurred by it in
connection with its activities under this Agreement (including taxes imposed on
the Servicer, expenses incurred in connection with distributions and reports
made by the Servicer to Noteholders [or the Insurer] and, to the extent not
provided for pursuant to Section 5.7, all other fees and out-of-pocket expenses
of the Owner Trustee, the Backup Servicer, and the Indenture Trustee, except
taxes levied or assessed against the Trust, the Owner Trustee, the Backup
Servicer or the Indenture Trustee, and claims against the Trust, the Owner
Trustee, the Backup Servicer or the Indenture Trustee in respect of
indemnification, which taxes and claims in respect of indemnification against
the Trust are expressly stated to be for the account of Triad). The Servicer
will, to the extent not provided for pursuant to Section 5.7, be liable for the
fees and out-of-pocket expenses of the Owner Trustee, the Backup Servicer, the
Indenture Trustee, the Custodian, the Processing Bank (and any fees under the
Blocked Account Agreement) and the Independent Accountants except taxes levied
or assessed against such parties. Notwithstanding the foregoing, if the Servicer
is not Triad, a successor to Triad as Servicer including the Backup Servicer
permitted by Section 9.3 will not be liable for taxes levied or assessed against
the Trust or claims against the Trust in respect of indemnification, or the fees
and expenses referred to above.

      SECTION 4.9. Servicer's Certificate. No later than 11:00 a.m. New York
City time on each Determination Date, the Servicer will deliver (facsimile
delivery being acceptable; and in the case of the Servicer's Certificate to be
delivered to the Indenture Trustee, the Depositor and the Backup Servicer, an
e-mail in a computer file, the format of which will be agreed upon between the
Servicer and such parties) to the Indenture Trustee, the Owner Trustee, the
Backup Servicer[, the

                                       30
<PAGE>

Insurer] and each Rating Agency a Servicer's Certificate containing among the
other things set forth in Exhibit A, (i) all information necessary to enable the
Indenture Trustee to give any notice required by Section 6.1 and to make the
distributions required by Section 5.7, (ii) a listing of all Purchased
Receivables and Administrative Receivables purchased as of the related
Accounting Date, (iii) all information necessary to enable the Indenture Trustee
to send the statements to Noteholders [and the Insurer] required by Section
5.10, (iv) the Delinquency Rate, Net Loss Rate and Cumulative Net Loss Ratio for
such Determination Date, and (v) whether to the knowledge of the Servicer an
Insurance Agreement Event of Default, a Spread Cap Event [(as defined in the
Insurance Agreement) or a Trigger Event (as defined in the Insurance Agreement)]
has occurred. Receivables purchased by the Servicer or by Triad on the related
Accounting Date and each Receivable that became a Liquidated Receivable or that
was paid in full during the related Collection Period will be identified by
account number (as set forth in the Schedule of Receivables).

      SECTION 4.10. Annual Statement as to Compliance, Notice of Servicer
Termination Event.

      (a) The Servicer will deliver to the Indenture Trustee, the Owner Trustee,
the Backup Servicer[, the Insurer] and each Rating Agency, on or before April 30
(or 120 days after the end of the Servicer's fiscal year, if other than December
31) of each year, beginning on April 30, ____, an Officer's Certificate, dated
as of December 31 (or other applicable date) of such year, stating that (i) a
review of the activities of the Servicer during the preceding 12-month period
(or such other period as has elapsed from the Closing Date to the date of the
first such certificate) and of its performance under this Agreement has been
made under such officer's supervision, and (ii) to such officer's knowledge,
based on such review, the Servicer has fulfilled all its obligations under this
Agreement throughout such period, or, if there has been a default in the
fulfillment of any such obligation, specifying each such default known to such
officer and the nature and status thereof.

      (b) The Servicer will deliver to the Indenture Trustee, the Owner Trustee,
the Backup Servicer[, the Insurer,] and each Rating Agency, promptly after
having obtained knowledge thereof, but in no event later than two (2) Business
Days thereafter, written notice in an Officer's Certificate of any event which
with the giving of notice or lapse of time, or both, would become a Servicer
Termination Event under Section 9.1.

      SECTION 4.11. Annual Independent Accountants' Report.

            The Servicer will cause a firm of independent certified public
accountants (the "Independent Accountants"), who may also render other services
to the Servicer or to its Affiliates, to deliver to the Indenture Trustee, the
Owner Trustee, the Backup Servicer[, the Insurer] and each Rating Agency, on or
before April 30 (or 120 days after the end of the Servicer's fiscal year, if
other than December 31) of each year, beginning on April 30, ____ with respect
to the twelve months ended the immediately preceding December 31 (or other
applicable date) (or such other period as has elapsed from the Closing Date to
the date of such certificate), a report (the "Accountant's Report") addressed to
the board of directors of the Servicer to the effect that such firm has examined
the Servicer's assertion that the Servicer has complied with its Minimum
Servicing Standards and that such examination (1) was conducted in accordance
with the Attestation Protocol, (2) included examining, on a test basis, evidence
regarding Servicer's Compliance with its Minimum Servicing Standards. The
Accountant's Report shall include an opinion that the Servicer's assertion with
respect to compliance with its Minimum Servicing Standards is fairly stated in
all material respects or shall report the exceptions that do not permit such
opinion. The Accountant's Report required by this Section 4.11

                                       31
<PAGE>

may be replaced at the election of the Servicer by any similar report or
certification using standards other than the Minimum Servicing Standards or the
Attestation Protocol that are now or in the future in use by servicers of retail
installment sale contracts or direct purchase money loans or that otherwise
comply with any rule, regulation, "no action" letter or similar guidance
promulgated by the Securities and Exchange Commission. Except to the extent
otherwise required by applicable law, the Servicer is not required to deliver
the report hereunder if Triad is reported solely as a consolidated subsidiary
and there are no separate audits of the books and records of Triad; provided,
however, the Servicer is required to notify the Indenture Trustee in writing
that there are no separate audits of the books and records of Triad and that
therefore the Servicer will not be delivering the report. Notwithstanding this
Section 4.11, if the Backup Servicer is then acting as the successor Servicer,
it shall only be required to provide a copy of its annual SAS 70 report and its
audited financial statements.

      SECTION 4.12. Access to Certain Documentation and Information Regarding
Receivables. The Servicer will upon reasonable prior notice provide to
representatives of the Indenture Trustee, the Owner Trustee, the Backup Servicer
[and the Insurer] reasonable access to the documentation regarding the
Receivables. In each case, such access will be afforded without charge but only
upon reasonable request and during normal business hours. Any expense incident
to the exercise by the Indenture Trustee, Owner Trustee, Backup Servicer [or the
Insurer] will be borne by the Servicer to the extent such visits and
examinations are not more frequent than once in any twelve-month period, or a
Servicer Termination Event has occurred and is continuing. Nothing in this
Section will affect the obligation of the Servicer to observe any applicable law
prohibiting disclosure of information regarding the Obligors, and the failure of
the Servicer to provide access as provided in this Section 4.12 as a result of
such obligation will not constitute a breach of this Section 4.12.

      SECTION 4.13. Reserved.

      SECTION 4.14. Fidelity Bond and Errors and Omissions Policy. The Servicer
will not be required to maintain an errors and omissions policy. The Servicer
will maintain a fidelity bond of a type and in an amount customary for servicers
engaged in the business of servicing motor vehicle receivables.

                                   ARTICLE V

                         Trust Accounts; Distributions;
                            Statements to Noteholders

      SECTION 5.1. Establishment of Trust Accounts.

      (a) (i) The Indenture Trustee, on behalf of the Noteholders [and the
Insurer], will establish and maintain in its own name one or more Eligible
Deposit Accounts (collectively, the "Collection Account"), bearing a designation
clearly indicating that the funds deposited therein are held for the benefit of
the Indenture Trustee on behalf of the Noteholders [and the Insurer]. The
Collection Account will initially be established with the Indenture Trustee.

            (ii) The Indenture Trustee, on behalf of the Noteholders, will
establish and maintain in its own name an Eligible Deposit Account (the "Note
Distribution Account"), bearing a designation clearly indicating that the funds
deposited therein are held for the benefit of the Indenture

                                       32
<PAGE>

Trustee on behalf of the Noteholders [and the Insurer]. The Note Distribution
Account will initially be established with the Indenture Trustee.

            (iii) The Indenture Trustee, on behalf of the Noteholders, will
establish and maintain in its own name an Eligible Deposit Account (the "Spread
Account"), bearing a designation clearly indicating that the funds deposited
therein are held in trust for the benefit of the Indenture Trustee on behalf of
the Noteholders [and the Insurer]. The Spread Account will initially be
established with the Indenture Trustee.

            (iv) Funds on deposit in the Collection Account, the Note
Distribution Account (but only to the extent of deposits therein for more than
one Business Day), and the Spread Account (collectively, the "Trust Accounts")
will be invested by the Indenture Trustee (or any custodian with respect to
funds on deposit in any such account) in Eligible Investments selected in
writing by the Servicer (pursuant to standing instructions or otherwise). All
such Eligible Investments will be held by or on behalf of the Indenture Trustee
for the benefit of the Noteholders [and the Insurer], as applicable. Funds on
deposit in any Trust Account will be invested in Eligible Investments that will
mature so that such funds will be available at the close of business on the
Business Day immediately preceding the following Distribution Date. However, if
each of the Rating Agencies confirms that it would not affect the ratings
assigned to the Notes [and the Insurer consents], funds on deposit in the Spread
Account may be invested in Eligible Investments that will mature so that funds
will be available on the following Distribution Date. All Eligible Investments
will be held to maturity.

      (b) All investment earnings of moneys deposited in the Trust Accounts will
be deposited (or caused to be deposited) by the Indenture Trustee in the
Collection Account, and any loss resulting from such investments will be charged
to the applicable Trust Account. The Servicer will not direct the Indenture
Trustee to make any investment of any funds held in any of the Trust Accounts
unless the security interest granted and perfected in such account will continue
to be perfected in such investment, in either case without any further action by
any Person.

      (c) The Indenture Trustee will not in any way be held liable by reason of
any insufficiency in any of the Trust Accounts resulting from any loss on any
Eligible Investment included therein except for losses attributable to the
Indenture Trustee's negligence or bad faith or its failure to make payments on
such Eligible Investments issued by the Indenture Trustee, in its commercial
capacity as principal obligor and not as trustee, in accordance with their
terms.

      (d) If (i) the Servicer fails to give investment directions in writing for
any funds on deposit in the Trust Accounts to the Indenture Trustee by 1:00 p.m.
New York City Time (or such other time as may be agreed by the Issuer and
Indenture Trustee) on any Business Day; or (ii) a Default or Event of Default
has occurred and is continuing with respect to the Notes but the Notes have not
been declared due and payable, or, if such Notes will have been declared due and
payable following an Event of Default, amounts collected or receivable from the
Trust Property are being applied as if there had not been such a declaration;
then the Indenture Trustee will, to the fullest extent practicable, invest and
reinvest funds in the Trust Accounts in the investment described in clause (d)
of the definition of Eligible Investments.

      (e) (i) The Indenture Trustee will possess all right, title and interest
in all funds on deposit from time to time in the Trust Accounts and in all
proceeds thereof and all such funds, investments, proceeds and income will be
part of the Owner Trust Estate. Except as otherwise provided herein, the Trust
Accounts will be under the sole dominion and control of the Indenture

                                       33
<PAGE>
Trustee for the benefit of the Noteholders [and the Insurer]. If, at any time,
any of the Trust Accounts ceases to be an Eligible Deposit Account, the
Indenture Trustee (or the Servicer on its behalf) will within ten Business Days
(or such longer period as to which each Rating Agency [and the Insurer] may
consent) establish a new Trust Account as an Eligible Deposit Account and will
transfer any cash and/or any investments to such new Trust Account. In
connection with the foregoing, the Servicer agrees that, in the event that any
of the Trust Accounts are not accounts with the Indenture Trustee, the Servicer
will notify the Indenture Trustee in writing promptly upon any of such Trust
Accounts ceasing to be an Eligible Deposit Account.

      (ii) With respect to the Trust Account Property, the Indenture Trustee
agrees that:

                  (A) any Trust Account Property that is held in deposit
            accounts will be held solely in the Eligible Deposit Accounts; and,
            except as otherwise provided herein, each such Eligible Deposit
            Account will be subject to the exclusive custody and control of the
            Indenture Trustee, and the Indenture Trustee will have sole
            signature authority with respect thereto;

                  (B) any Trust Account Property that constitutes "securities
            entitlements" will be delivered to the Indenture Trustee in
            accordance with the UCC and will be held, pending maturity or
            disposition, solely by the Indenture Trustee or a securities
            intermediary (as such term is defined in Section 8-102(14) of the
            UCC) acting solely for the Indenture Trustee; and

                  (C) the "securities intermediary's jurisdiction," for purposes
            of Section 8-110 of the UCC, shall be the State of New York.

      (f) The Servicer will have the power, revocable [by the Insurer or, with
the consent of the Insurer,] by the Indenture Trustee, to instruct the Indenture
Trustee to make withdrawals and payments from the Trust Accounts for the purpose
of permitting the Servicer and the Indenture Trustee to carry out its respective
duties hereunder.

      SECTION 5.2. [Reserved].

      SECTION 5.3. Certain Reimbursements to the Servicer. The Servicer will be
entitled to be reimbursed from amounts on deposit in the Collection Account with
respect to a Collection Period for amounts previously deposited in the
Collection Account but later determined by the Servicer to have resulted from
mistaken deposits or postings or checks returned for insufficient funds. To the
extent that such amounts are owed to the Processing Bank, the Servicer will
cause such amounts to be returned to the Processing Bank. The amount to be
reimbursed hereunder will be paid to the Servicer on the related Distribution
Date pursuant to Section 5.7(a)(i) upon certification by the Servicer of such
amounts and the provision of such information to the Indenture Trustee [and the
Insurer as may be necessary in the opinion of the Insurer to verify the accuracy
of such certification]; provided, however, that the Servicer must provide such
clarification within 12 months of such mistaken deposit, posting, or returned
check. [In the event that the Insurer has not received evidence satisfactory to
it of the Servicer's entitlement to reimbursement pursuant to this Section 5.3,
the Insurer will (unless an Insurer Default has occurred and is continuing) give
the Indenture Trustee notice in writing to such effect, following receipt of
which the Indenture Trustee will not make a distribution to the Servicer in
respect of such amount pursuant to Section 5.7, or if the Servicer prior thereto
has been reimbursed pursuant to Section 5.7, the Indenture Trustee will withhold
such

                                       34
<PAGE>

amounts from amounts otherwise distributable to the Servicer on the next
succeeding Distribution Date.] The Servicer will additionally be entitled to
receive from amounts on deposit in the Collection Account with respect to a
Collection Period any amounts paid by Obligors that were collected in the
Lockbox Account but that do not relate to (i) principal and interest payments
due on the Receivables and (ii) any Supplemental Servicing Fees.

      SECTION 5.4. Application of Collections. All collections for the
Collection Period will be applied by the Servicer as follows:

            With respect to each Receivable (other than a Purchased Receivable),
payments by or on behalf of the Obligor (other than Supplemental Servicing Fees
with respect to such Receivable, to the extent collected) will be applied to
interest and principal in accordance with the Simple Interest Method.

            All amounts collected that are payable to the Servicer as
Supplemental Servicing Fees hereunder will be deposited in the Collection
Account and paid to the Servicer in accordance with Section 5.7(a).

      SECTION 5.5. Spread Account.

      (a) On or prior to the Closing Date, the Depositor will deposit an amount
equal to the Spread Account Initial Deposit into the Spread Account from the
proceeds of the Notes. On each Distribution Date, to the extent of funds
available therefor pursuant to the priority of payments, amounts will be
deposited into the Spread Account in accordance with Section 5.7(a)(xii) until
the amount on deposit therein is equal to the Spread Account Requirement.

      (b) In the event that the Servicer's Certificate with respect to any
Determination Date states that there is a Spread Account Draw Amount, then on
the related Distribution Date, the Indenture Trustee will withdraw such Spread
Account Draw Amount from the Spread Account to the extent of funds on deposit
therein and deposit such amount into the Collection Account for distribution in
accordance with Section 5.7(a).

      (c) After considering all required distributions made on a Distribution
Date, amounts on deposit in the Spread Account on that Distribution Date that
are in excess of the Spread Account Requirement for that Distribution Date will
be applied by the Indenture Trustee in accordance with Section 5.7(a)(x), then
5.7(a)(xiii) through (xv).

      SECTION 5.6. Additional Deposits.

      (a) The Servicer and Triad, as applicable, will deposit or cause to be
deposited in the Collection Account on the Determination Date on which such
obligations are due the aggregate Purchase Amount with respect to Purchased
Receivables.

      (b) The proceeds of any sale of the assets of the Trust described in
Section 10.1 will be deposited in the Collection Account on the date of such
sale.

      (c) If the Indenture Trustee receives any Additional Funds Available of
the type described in clause (2) of the definition thereof it will deposit them
into the Collection Account and on each Distribution Date it will transfer any
such funds to the Note Distribution Account.

                                       35
<PAGE>

      SECTION 5.7. Distributions.

      (a) On each Distribution Date, unless payments are required to be made in
accordance with Article V of the Indenture, the Indenture Trustee will (based
solely on the information contained in the Servicer's Certificate delivered with
respect to the related Determination Date) distribute the following amounts from
Available Funds on deposit in the Collection Account unless otherwise specified,
to the extent of the sources of funds stated to be available therefor, and in
the following order of priority:

            (i) to the Servicer, the Servicing Fee for the related Collection
      Period, and, to the extent the Servicer has not reimbursed itself or to
      the extent not retained by the Servicer, other amounts relating to
      mistaken deposits, postings or checks returned for insufficient funds, and
      to the extent available, any amounts paid by the Obligors during the
      preceding Collection Period that were collected in the Collection Account
      but that do not relate to principal payments or interest payments such as
      late fees, prepayment charges and other administrative charges;

            (ii) to the Owner Trustee, the Indenture Trustee and the Backup
      Servicer, the Owner Trustee Fee, the Indenture Trustee Fee, and any
      accrued and unpaid servicer transition expenses of any incoming servicer
      then due to the Indenture Trustee, the Backup Servicer or any other
      successor servicer, up to a maximum amount of $200,000 in the aggregate;

            (iii) to the Note Distribution Account, the Class A Noteholders'
      Interest Distributable Amount;

            (iv) to the Note Distribution Account, to make a payment of
      principal on the Class A Notes to the extent necessary to reduce the Class
      A Note principal balance to the Pool Balance;

            (v) to the Note Distribution Account, to make a payment of the
      remaining principal balance of any of the Class A Notes on their Final
      Scheduled Distribution Date;

           [(vi) to the Insurer, any unpaid amounts owed to the Insurer under
      the Insurance Agreement with respect to unpaid Premiums and unreimbursed
      Insured Payments;]

            (vii) to the Note Distribution Account, to make a payment of
      principal on the Class A Notes to the extent necessary to reduce the
      combined Class A and Class B Note principal balance to the Pool Balance;

            (viii) to the Note Distribution Account, the Class B Noteholders'
      Interest Distributable Amount;

            (ix) to the Note Distribution Account, to make a payment of the
      remaining principal balance of any of the Class B Notes on their Final
      Scheduled Distribution Date;

           [(x) to the Insurer, so long as no Insurer Default has occurred and
      is continuing, any other unpaid amounts owed to the Insurer under the
      Insurance Agreement;]

            (xi) to the Note Distribution Account, to make a payment of the
      Class A Noteholders' Principal Distributable Amount;

                                       36
<PAGE>

            (xii) to the Spread Account, any amount required to increase the
      amount in the Spread Account to the Spread Account Requirement;

           [(xiii) to the Insurer, if an Insurer Default has occurred or is
      continuing, the amounts described under clause (x) above;]

            (xiv) to the Note Distribution Account, to make a payment of the
      Class A Noteholders' Accelerated Principal Amount[, provided that if an
      Insurance Agreement Event of Default has occurred and is continuing, all
      remaining Available Funds shall be applied to pay principal on the Class A
      Notes until they have been paid in full, in either case, for payment to
      the Class A Noteholders]; and

            (xv) to the Note Distribution Account, to make a payment of
      principal to the holders of the Class B Notes, or, if the Class B Notes
      are no longer outstanding, to make a payment of all remaining amounts to
      the Certificateholder.

      (b) On each Distribution Date, the Indenture Trustee will (based solely on
the information contained in the Servicer's Certificate delivered with respect
to the related Determination Date[, unless the Insurer has notified the
Indenture Trustee in writing of any errors or deficiencies with respect
thereto]) distribute from the Collection Account the Additional Funds Available,
if any, [plus the Policy Claim Amount, if any, in each case] then on deposit in
the Collection Account, and deposit in the Note Distribution Account any excess
of the Scheduled Payments (as defined in the Note Policy) due on such
Distribution Date over the amount of all Available Funds previously deposited in
the Note Distribution Account with respect to the related Distribution Date,
which amount will be applied solely to the payment of amounts then due and
unpaid on the Class A Notes in accordance with the priorities set forth in
Section 5.8(a).

      (c) In the event that the Collection Account is maintained with an
institution other than the Indenture Trustee, the Servicer will instruct and
cause such institution to make all deposits and distributions pursuant to
Sections 5.7(a) and 5.7(b) on the related Distribution Date.

      SECTION 5.8. Note Distribution Account.

      (a) On each Distribution Date (based solely on the information contained
in the Servicer's Certificate) the Indenture Trustee will distribute all amounts
on deposit in the Note Distribution Account to Noteholders in respect of the
Notes to the extent of amounts due and unpaid on the Notes for principal and
interest in the following amounts:

            - From amounts transferred pursuant to Section 5.7(a)(iii), accrued
      and unpaid interest on the Class A Notes; provided that if such amount is
      insufficient to pay the entire amount of accrued and unpaid interest then
      due on each Class of Class A Notes, the amount in the Note Distribution
      Account will be applied to the payment of such interest on each Class of
      Class A Notes pro rata on the basis of the amount of accrued and unpaid
      interest due on each Class of Class A Notes.

            - From amounts transferred pursuant to Section 5.7(a)(viii), accrued
      and unpaid interest on the Class B Notes.

                                       37
<PAGE>

            - From amounts transferred pursuant to Section 5.7(a)(iv), (v),
      (vii), (xi) and (xiv), in the following order of priority:

                  (1) to the holders of the [Class A-1 Notes], the total amount
            paid out on each Distribution Date until the outstanding principal
            balance of the [Class A-1 Notes] has been reduced to zero;

                  (2) to the holders of the [Class A-2 Notes], the total amount
            paid out on each Distribution Date until the outstanding principal
            balance of the [Class A-2 Notes] has been reduced to zero;

                  (3) to the holders of the [Class A-3 Notes], the total amount
            paid out on each Distribution Date until the outstanding principal
            balance of the [Class A-3 Notes] has been reduced to zero; and

                  (4) to the holders of the [Class A-4 Notes], the total amount
            paid out on each Distribution Date until the outstanding principal
            balance of the [Class A-4 Notes] is reduced to zero.

            - From amounts transferred pursuant to section 5.7(a)(ix) and (xv),
      to the holders of the Class B Notes, until the outstanding principal
      balance of the Class B Notes is reduced to zero.

provided, that after the acceleration of the Notes following the occurrence of
an Event of Default under the Indenture, payments of principal on the Notes will
be made, instead of as provided above after payment of all amounts owing to the
Indenture Trustee pursuant to Section 6.7 of the Indenture, first to the [Class
A-1 Notes] until the [Class A-1 Notes] have been paid in full, second to the
other Classes of Class A Notes pro rata until they are paid in full, and third,
to the Class B Notes.

      (b) On each Distribution Date, the Indenture Trustee will post on its
website at _______________, which posting will be accessible to each Noteholder
[and to the Insurer], the statement provided to the Indenture Trustee by the
Servicer pursuant to Section 5.10 hereof on such Distribution Date.

      (c) In the event that any withholding tax is imposed on the Trust's
payment (or allocations of income) to a Noteholder, such tax will reduce the
amount otherwise distributable to the Noteholder in accordance with this Section
5.8. The Indenture Trustee is hereby authorized and directed to retain from
amounts otherwise distributable to the Noteholders sufficient funds for the
payment of any withholding tax attributable to the Trust (but such authorization
will not prevent the Indenture Trustee from contesting any such tax in
appropriate proceedings, and withholding payment of such tax, if permitted by
law, pending the outcome of such proceedings). The amount of any withholding tax
imposed with respect to a Noteholder will be treated as cash distributed to such
Noteholder at the time it is withheld by the Trust and remitted to the
appropriate taxing authority. If there is a possibility that withholding tax is
payable with respect to a distribution (such as a distribution to a non-U.S.
Noteholder), the Indenture Trustee may in its sole discretion withhold such
amounts in accordance with this Section 5.8(c). In the event that a Noteholder
wishes to apply for a refund of any such withholding tax, the Indenture Trustee
will reasonably cooperate with such Noteholder in making such claim so long as
such Noteholder agrees to reimburse the Indenture Trustee for any out-of-pocket
expenses (including legal fees and expenses) incurred.

                                       38
<PAGE>

      (d) Distributions required to be made to Noteholders on any Distribution
Date will be made to each Noteholder of record on the related Record Date either
by wire transfer, or by check mailed to such Noteholder, as provided in Section
2.7 of the Indenture.

      (e) Subject to Section 5.1 and this Section 5.8, monies received by the
Indenture Trustee 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 Indenture Trustee will not be liable for any
interest thereon.

      SECTION 5.9. Reserved.

      SECTION 5.10. Statements to Noteholders.

      (a) On each Distribution Date, the Indenture Trustee will make available
to each Noteholder [and to the Insurer] and the Rating Agencies a statement
setting forth at least the following information (which will be included in the
Servicer's Certificate delivered to the Indenture Trustee) to the extent
applicable:

            (i) the amount of such distribution allocable to principal of each
      Class of Notes;

            (ii) the amount of such distribution allocable to interest on or
      with respect to each Class of Notes;

            (iii) the amount of such distribution payable out of amounts
      withdrawn from the Spread Account [or pursuant to a claim on the Note
      Policy];

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

            (v) the aggregate outstanding principal amount of each Class of the
      Notes and the Note Pool Factor for each such Class after giving effect to
      payments allocated to principal reported under Section 5.10(a)(i);

            (vi) the amount of the Servicing Fee paid to the Servicer with
      respect to the related Collection Period and/or due but unpaid with
      respect to such Collection Period or prior Collection Periods, as the case
      may be;

            (vii) the Class A Noteholders' Interest Carryover Amount, the Class
      B Noteholders' Interest Carryover Amount and the Class A Noteholders'
      Principal Carryover Amount;

            (viii) the Delinquency Rate with respect to such Distribution Date;

            (ix) the Net Loss Rate and Cumulative Net Loss Ratio with respect to
      such Distribution Date; and

            (x) the aggregate Purchase Amounts for Receivables, if any, that
      were repurchased by Triad or the Servicer on or prior to the related
      Determination Date.

                                       39
<PAGE>

Each amount set forth pursuant to Section 5.10(a)(i), (ii), (iii), (vi) and
(vii) will be expressed as a dollar amount per $1,000 of the initial principal
balance of the Notes (or Class thereof).

      (b) The Indenture Trustee will make the statements referred to in Section
5.10(a) (and, at its option, any additional files containing the same
information in an alternative format) available each month via the Indenture
Trustee's internet website, which is presently located at www.______________.
Persons that are entitled to receive such statements but are unable to use the
above website are entitled to have a paper copy mailed to them via first class
mail by calling the Indenture Trustee at _______________. The Indenture Trustee
will have the right to change the way the statements referred to in Section
5.10(a) are distributed in order to make such distribution more convenient
and/or more accessible to the parties entitled to receive such statements. The
Indenture Trustee will provide notification of any such change to all parties
entitled to receive such statements in the manner described in Section 12.3,
Section 11.4 of the Indenture or Section 11.5 of the Indenture, as appropriate.

      [SECTION 5.11. Optional Deposits by the Insurer. The Insurer will at any
time, and from time to time, with respect to a Distribution Date, have the
option (but will not be required, except in accordance with the terms of the
Note Policy) to deliver an Insurer Optional Deposit to the Indenture Trustee for
deposit into the Collection Account.]

                                   [ARTICLE VI

                                 The Note Policy]

      [SECTION 6.1. Claims Under Note Policy.

      (a) In the event that the Servicer's Certificate with respect to any
Determination Date states that there is a Policy Claim Amount, the Indenture
Trustee will furnish to the Insurer no later than 12:00 noon New York City time
on the Business Day after the related Determination Date a completed Notice (as
attached as a form to the Note Policy) specifying the amount of the Policy Claim
Amount, provided, that if such Notice is received after 12:00 noon, New York
City time, on such Business Day, it will be deemed to be received before 12:00
noon, New York City time, on the following Business Day. If any such Notice is
not in proper form or is otherwise insufficient for the purpose of making a
claim under the Note Policy, it will be deemed not to have been received for
purposes of making such claim, and the Insurer will promptly so advise the
Indenture Trustee in writing and the Indenture Trustee may submit an amended or
corrected Notice. If such an amended or corrected Notice is in proper form and
is otherwise sufficient for the purpose of making a claim under the Note Policy,
it will be deemed to have been timely received on the Business Day of such
resubmission; provided, that if such notice is received after 12:00 noon, New
York City time, it shall be deemed to be received before 12:00 noon, New York
City time, on the following Business Day.

      (b) Any notice delivered by the Indenture Trustee to the Insurer pursuant
to Section 6.1(a) will specify the Policy Claim Amount claimed under the Note
Policy and will constitute a "Notice" under the Note Policy. In accordance with
the provisions of the Note Policy, the Insurer is required to pay to the
Indenture Trustee the Policy Claim Amount properly claimed thereunder by 12:00
noon, New York City time, on the later of (i) the Distribution Date on which the
related Policy Claim Amount is due for payment under the Indenture or (ii) the
second Business Day following actual receipt in New York, New York on a Business
Day by the Insurer of a Notice, appropriately

                                       40
<PAGE>

completed and executed by the Indenture Trustee; provided, that if such Notice
is received after 12:00 noon, New York City time, on such Business Day, it will
be deemed to be received before 12:00 noon, New York City time, on the following
Business Day. The Indenture Trustee will deposit amounts paid by the Insurer
pursuant to a claim submitted under this Section 6.1 into the Note Distribution
Account for payment to Holders (as defined in the Note Policy) on the related
Distribution Date (or, if funds are received from the Insurer after the related
Distribution Date, for payment to Holders promptly after such receipt). Any
payment made by the Insurer under the Note Policy will be applied solely to the
payment of the Class A Notes, and for no other purpose. Amounts payable in
respect of any Policy Claim Amounts due under the Note Policy, unless otherwise
stated therein, will be distributed by the Insurer to, or at the direction of,
the Indenture Trustee, by wire transfer of immediately available funds. The
Insurer's payment obligations under the Note Policy with respect to particular
Policy Claim Amounts will be discharged to the extent funds equal to the
applicable Policy Claim Amounts are paid by the Insurer to, or at the direction
of, the Indenture Trustee in accordance with the Indenture Trustee's request,
whether or not such funds are properly applied by the Indenture Trustee. Payment
of Policy Claim Amounts will be made only at the time set forth in the Note
Policy, and no accelerated Insured Payments (as defined in the Note Policy) will
be made except to the extent that the Insurer has specified an earlier date for
payment at its sole option. The Note Policy does not insure against loss of any
prepayment or other acceleration payment which at any time may become due in
respect of any Insured Obligation (as defined in the Note Policy), other than at
the sole option of the Insurer, nor against any risk other than Nonpayment (as
defined in the Note Policy), including failure of the Indenture Trustee to remit
any Policy Claim Amounts or Scheduled Payments due to Holders. Notwithstanding
anything to the contrary set forth in the Note Policy, in no event will the
aggregate amount paid by the Insurer thereunder exceed the Maximum Insured
Amount (as defined in the Note Policy).

      (c) The Indenture Trustee will (i) receive as attorney-in-fact of each
Holder any Policy Claim Amount from the Insurer and (ii) deposit the same in the
Note Distribution Account for distribution to Noteholders. Any and all Policy
Claim Amounts disbursed by the Indenture Trustee from claims made under the Note
Policy will not be considered payment by the Trust with respect to such Class A
Notes, and will not discharge the obligations of the Trust with respect thereto.
The Insurer will, upon any payment pursuant to the Note Policy, in furtherance
and not in limitation of its equitable right of subrogation and its rights under
the Insurance Agreement, to the extent it makes any payment with respect to the
Class A Notes, become subrogated to the rights of any Holders to receive any and
all amounts due in respect of the Insured Obligations as to which such payment
was made. The Insurer will be a co-beneficiary of the Indenture Trustee's lien
under the Indenture. Subject to and conditioned upon any payment with respect to
the Class A Notes by or on behalf of the Insurer, the Indenture Trustee will
assign to the Insurer all rights to the payment of interest or principal with
respect to the Notes which are then due for payment to the extent of all
payments made by the Insurer, and the Insurer may exercise any option, vote,
right, power or the like with respect to the Notes to the extent that it has
made payment pursuant to the Note Policy. To evidence such subrogation, the Note
Registrar will note the Insurer's rights as subrogee upon the register of
Holders. The foregoing subrogation will in all cases be subject to the rights of
the Holders to receive all Scheduled Payments (as defined in the Note Policy) in
respect of the Class A Notes.

      (d) The Indenture Trustee will keep a complete and accurate record of all
funds deposited into the Note Distribution Account with respect to the Note
Policy and the allocation of such funds to payment of interest on and principal
paid in respect of any Class A Note. The Insurer will have the right to inspect
such records at reasonable times upon one Business Day's prior notice to the
Indenture Trustee.

                                       41
<PAGE>

      (e) Only the Indenture Trustee on behalf of the Holders will be entitled
to make a claim for Policy Claim Amounts and Preference Amounts under the Note
Policy. Notwithstanding any other provision of this Agreement or any Basic
Document, the Noteholders are not entitled to institute proceedings directly
against the Insurer.]

      [SECTION 6.2. Preference Claims Under Note Policy.

      (a) In the event that the Indenture Trustee has received a certified copy
of a final, nonappealable order of an appropriate court or other body exercising
jurisdiction that any interest on or principal of the Class A Notes which has
become due for payment under the Indenture or this Agreement, the nonpayment of
which would have been covered by the Note Policy, and which was made to a Holder
by or on behalf of the Issuer has been deemed a preferential transfer and
recoverable, or theretofore recovered, from such Holder pursuant to Title 11 of
the United States Code in accordance with an Order (such amount, a "Preference
Amount"), the Indenture Trustee will so notify the Insurer, will comply with the
provisions of the Note Policy to obtain payment by the Insurer of such avoided
payment, and will, at the time it provides notice to the Insurer, notify Holders
by mail that, in the event that any Holder's payment is so recoverable, such
Holder will be entitled to payment pursuant to the terms of the Note Policy. The
Insurer will pay any Preference Amount when due to be paid pursuant to an Order
(as defined below), but in any event no earlier than the fifth Business Day
following actual receipt by the Insurer of (i) a certified copy of a final,
nonappealable order of a court or other body exercising jurisdiction to the
effect that a Holder is required to return such Preference Amount paid during
the term of the Note Policy because the payments of such amounts were avoided as
a preferential transfer or otherwise rescinded or required to be restored by the
Indenture Trustee or such Holder (the "Order"), (ii) an opinion of counsel
satisfactory to the Insurer stating that the Order has been entered and is final
and not subject to any stay, (iii) an assignment, in form and substance
satisfactory to the Insurer, duly executed and delivered by such Holder and the
Indenture Trustee, irrevocably assigning to the Insurer all rights and claims of
the Indenture Trustee and such Holder relating to or arising under the Indenture
or otherwise with respect to such Preference Amount, (iv) appropriate
instruments in form satisfactory to the Insurer to effect the appointment of the
Insurer as agent for such Holder in any legal proceeding related to such
Preference Amount, and (v) a Notice appropriately completed and executed by the
Indenture Trustee in the form attached as Exhibit B to the Note Policy;
provided, that (I) if such documents are received by the Insurer after 12:00
noon, New York City time, on such Business Day, they will be deemed to be
received before 12:00 noon, New York City time, on the following Business Day
and (II) the Insurer will not be obligated to pay any Preference Amount in
respect of principal (other than the Class A Noteholders' Parity Deficit Amount)
prior to the Final Scheduled Distribution Date for the relevant class of Class A
Notes. Such payment will be disbursed to the receiver, conservator,
debtor-in-possession or trustee in bankruptcy named in the Order, and not to the
Indenture Trustee or the Holder directly, unless the Indenture Trustee or the
relevant Holder has made a payment of the Preference Amount to the court or such
receiver, conservator, debtor-in-possession or trustee in bankruptcy named in
the Order, in which case the Insurer will pay the Indenture Trustee, or as
directed by the Indenture Trustee, to the extent of the payment of the
Preference Amount, subject to the delivery of (a) the items referred to in
clauses (i), (ii), (iii), (iv) and (v) above to the Insurer and (b) evidence
satisfactory to the Insurer that payment has been made to such court or
receiver, conservator, debtor-in-possession or trustee in bankruptcy named in
the Order; provided, further, that any Preference Amount that constitutes
interest will be limited to the amount of interest on the outstanding principal
amount of the Class A Notes (calculated at the Interest Rate for the relevant
class of Class A Notes) accrued as of the last day of the applicable interest
accrual period with respect to the Class A Notes and will not, in any event,
include any interest on the Class A Notes

                                       42
<PAGE>

accrued after such date or any interest on such interest amount; provided,
further, that in no event will the Insurer be obligated to make any payment (i)
in respect to any Preference Amount to the extent that such payment, when added
to all prior payments of Policy Claim Amounts, would exceed the Maximum Insured
Amount (as defined in the Note Policy) or (ii) prior to the time the Insurer
would have been required to pay a Policy Claim Amount pursuant to Section 3 of
the Policy.

      (b) The Indenture Trustee will promptly notify the Insurer of any
proceeding or the institution of any action (of which a Responsible Officer of
the Indenture Trustee has actual knowledge) seeking the avoidance as a
preferential transfer under applicable bankruptcy, insolvency, receivership,
rehabilitation or similar law (a "Note Preference Claim") of any payment made to
a Holder that has been deemed a preferential transfer and recoverable, or
theretofore recovered, from such Holder pursuant to Title 11 of United States
Code in accordance with an Order. Each Holder, by its purchase of Class A Notes,
and the Indenture Trustee hereby agree that so long as no Insurer Default has
occurred and is continuing, the Insurer may at any time during the continuation
of any proceeding relating to a Note Preference Claim direct all matters
relating to such Note Preference Claim, including (i) the direction of any
appeal of any order relating to any Note Preference Claim and (ii) the posting
of any surety, supersedeas or performance bond pending any such appeal at the
expense of the Insurer, but subject to reimbursement as provided in the
Insurance Agreement. In addition, and without limitation of the foregoing, as
set forth in Section 6.1(c), the Insurer will be subrogated to, and each Holder
and the Indenture Trustee hereby delegate and assign, to the fullest extent
permitted by law, the rights of the trustee and each Holder in the conduct of
any proceeding with respect to a Note Preference Claim, including all rights of
any party to an adversary proceeding action with respect to any court order
issued in connection with any such Note Preference Claim.]

      [SECTION 6.3. Surrender of Note Policy. Indenture Trustee will surrender
the Note Policy to the Insurer for cancellation upon the expiration of such
policy in accordance with the terms thereof.]

                                  ARTICLE VII

                                 The Depositor

      SECTION 7.1. Representations of Depositor. The Depositor makes the
following representations [on which the Insurer will be deemed to have relied in
executing and delivering the Note Policy and] on which the Issuer is deemed to
have relied in acquiring the Receivables and on which the Indenture Trustee and
Backup Servicer may rely. The representations are true and correct as of the
execution and delivery of this Agreement and as of the Closing Date, in the case
of Receivables, and will survive the sale of the Receivables to the Issuer and
the pledge thereof to the Indenture Trustee pursuant to the Indenture.

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

                                       43
<PAGE>

      (b) Due Qualification. The Depositor is duly qualified to do business as a
foreign limited liability company in good standing and has obtained all
necessary licenses and approvals in all jurisdictions where the failure to do so
would materially and adversely affect the Depositor's ability to transfer the
Receivables and the Other Conveyed Property to the Trust pursuant to this
Agreement, or the validity or enforceability of the Receivables and the Other
Conveyed Property or to perform the Depositor's obligations under the Basic
Documents to which it is a party.

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

      (d) Valid Sale, Binding Obligations. This Agreement effects a valid sale,
transfer and assignment of the Receivables and the Other Conveyed Property,
enforceable against the Depositor and creditors of and purchasers from the
Depositor; and the Basic Documents to which it is a party, when duly executed
and delivered, will constitute legal, valid and binding obligations of the
Depositor enforceable in accordance with their respective terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization or other
similar laws affecting the enforcement of creditors' rights generally and by
equitable limitations on the availability of specific remedies, regardless of
whether such enforceability is considered in a proceeding in equity or at law.

      (e) No Violation. The consummation of the transactions contemplated by the
Basic Documents and the fulfillment of the terms of the Basic Documents to which
the Depositor is a party will not conflict with, result in any breach of any of
the terms and provisions of or constitute (with or without notice, lapse of time
or both) a default under the limited liability company agreement or operating
agreement of the Depositor, or any material indenture, agreement, mortgage, deed
of trust or other instrument to which the Depositor is a party or by which it is
bound, or result in the creation or imposition of any Lien upon any of its
properties pursuant to the terms of any such indenture, agreement, mortgage,
deed of trust or other instrument, other than the Basic Documents, or violate
any law, 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 any of
its properties.

      (f) No Proceedings. There are no proceedings or investigations pending or,
to the Depositor's best knowledge, threatened against the Depositor, before any
court, regulatory body, administrative agency or other tribunal or governmental
instrumentality having jurisdiction over the Depositor or its properties (A)
asserting the invalidity of any of the Basic Documents, (B) seeking to prevent
the issuance of the Securities or the consummation of any of the transactions
contemplated by this Agreement or any of the Basic Documents, or (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, any of the Basic Documents.

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

                                       44
<PAGE>

      SECTION 7.2. Organizational Existence. During the term of this Agreement,
the Depositor will keep in full force and effect its existence, rights and
franchises as a limited liability company under the laws of Delaware and will
obtain and preserve its qualification to do business in each jurisdiction in
which such qualification is or will be necessary to protect the validity and
enforceability of the Basic Documents and each other instrument or agreement
necessary or appropriate to the proper administration of this Agreement and the
transactions contemplated hereby.

      SECTION 7.3. Liability of Depositor. The Depositor will be liable in
accordance herewith only to the extent of the obligations specifically
undertaken by the Depositor under this Agreement.

      SECTION 7.4. Merger or Consolidation of, or Assumption of the Obligations
of, Depositor. Any Person (a) into which the Depositor may be merged or
consolidated, (b) which may result from any merger or consolidation to which the
Depositor will be a party or (c) which may succeed to the properties and assets
of the Depositor substantially as a whole, which Person in any of the foregoing
cases executes an agreement of assumption to perform every obligation of the
Depositor under this Agreement, will be the successor to the Depositor hereunder
without the execution or filing of any document or any further act by any of the
parties to this Agreement; provided, however, that the Depositor will have
delivered to the Owner Trustee, the Backup Servicer, the Indenture Trustee [and
the Insurer] an Opinion of Counsel stating that, in the opinion of such counsel,
either (A) all financing statements and continuation statements and amendments
thereto have been executed and filed that are necessary fully to preserve and
protect the interest of the Issuer and the Indenture Trustee, respectively, in
the Receivables and reciting the details of such filings or (B) no such action
will be necessary to preserve and protect such interest.

      SECTION 7.5. Limitation on Liability of Depositor and Others. The
Depositor and any director or officer or employee or agent of the Depositor may
rely in good faith on the advice of counsel or on any document of any kind,
prima facie properly executed and submitted by any Person respecting any matters
arising under any Basic Document. The Depositor will not be under any obligation
to appear in, prosecute or defend any legal action that will not be incidental
to its obligations under this Agreement, and that in its opinion may involve it
in any expense or liability.

      SECTION 7.6. Ownership of the Certificates or Notes. The Depositor may in
its individual or any other capacity become the owner or pledgee of Certificates
or Notes with the same rights as it would have if it were not the Depositor,
except as expressly provided herein or in any Basic Document. Notes or
Certificates so owned by the Depositor will have an equal and proportionate
benefit under the provisions of the Basic Documents, without preference,
priority, or distinction as among all of the Notes or Certificates.

                                  ARTICLE VIII

                                  The Servicer

      SECTION 8.1. Representations of Servicer. The Servicer makes the following
representations [on which the Insurer is deemed to have relied in executing and
delivering the Note Policy and] on which the Issuer is deemed to have relied in
acquiring the Receivables and on which the Indenture Trustee and the Backup
Servicer may rely. The representations are true and correct as of the execution
and delivery of this Agreement and as of the Closing Date, in the case of the

                                       45
<PAGE>

Receivables, and will survive the sale of the Receivables to the Issuer and the
pledge thereof to the Indenture Trustee pursuant to the Indenture.

            (i) Representations and Warranties. The representations and
      warranties set forth on the Schedule of Representations attached hereto as
      Schedule B are true and correct;

            (ii) Organization and Good Standing. The Servicer has been duly
      organized and is validly existing and in good standing under the laws of
      California, with corporate power, authority and legal right to own its
      properties and to conduct its business as such properties are currently
      owned and such business is currently conducted, and had at all relevant
      times, and now has, power, authority and legal right to enter into and
      perform its obligations under the Basic Documents to which it is a party;

            (iii) Due Qualification. The Servicer 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 of servicing
      the Receivables as required by this Agreement requires or will require
      such qualification;

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

            (v) Binding Obligation. The Basic Documents to which the Servicer is
      a party constitute legal, valid and binding obligations of the Servicer
      enforceable in accordance with their respective terms, except as
      enforceability may be limited by bankruptcy, insolvency, reorganization,
      or other similar laws affecting the enforcement of creditors' rights
      generally and by equitable limitations on the availability of specific
      remedies, regardless of whether such enforceability is considered in a
      proceeding in equity or at law;

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

            (vii) No Proceedings. There are no proceedings or investigations
      pending or, to the Servicer's best knowledge, threatened against the
      Servicer, before any court, regulatory body, administrative agency or
      other tribunal or governmental instrumentality having jurisdiction over
      the Servicer or its properties (A) asserting the invalidity of any of the
      Basic Documents, (B) seeking to prevent the issuance of the Securities or
      the consummation of any

                                       46
<PAGE>

      of the transactions contemplated by any of the Basic Documents, or (C)
      seeking any determination or ruling that might materially and adversely
      affect the performance by the Servicer of its obligations under, or the
      validity or enforceability of, any of the Basic Documents or (D) seeking
      to adversely affect the federal income tax or other federal, state or
      local tax attributes of the Securities;

            (viii) No Consents. The Servicer is not required to obtain the
      consent of any other party or any consent, license, approval or
      authorization, or registration or declaration with, any governmental
      authority, bureau or agency in connection with the execution, delivery,
      performance, validity or enforceability of this Agreement which has not
      already been obtained.

      SECTION 8.2. Liability of Servicer; Indemnities.

      (a) The Servicer (in its capacity as such) will be liable hereunder only
to the extent of the obligations in this Agreement specifically undertaken by
the Servicer and the representations made by the Servicer.

      (b) The Servicer will defend, indemnify and hold harmless the Trust, the
Depositor, the Indenture Trustee, the Owner Trustee, the Backup Servicer, [the
Insurer,] their respective officers, directors, agents and employees, and the
Noteholders from and against any and all costs, expenses, losses, damages,
claims and liabilities, including reasonable fees and expenses of counsel and
expenses of litigation (i) arising out of or resulting from the use, ownership
or operation by the Servicer or any Affiliate thereof of any Financed Vehicle or
(ii) to the extent that such cost, expense, loss, claim, damage, or liability
arose out of, or was imposed upon the Trust, the Indenture Trustee, the
Depositor, the Owner Trustee, the Backup Servicer, [the Insurer] or the
Noteholders by reason of the breach of this Agreement by the Servicer, the
negligence (other than errors in judgment), misfeasance, or bad faith of the
Servicer in the performance of its duties under this Agreement or by reason of
reckless disregard of its obligations and duties under this Agreement.

      (c) Indemnification under this Section 8.2 will include, without
limitation, reasonable fees and expenses of counsel and expenses of litigation.
If the Servicer has made any indemnity payments pursuant to this Section 8.2 and
the recipient thereafter collects any of such amounts from others, the recipient
will promptly repay such amounts collected to the Servicer, without interest.

      (d) The Servicer will pay, reimburse and indemnify the Indenture Trustee
and the Backup Servicer in accordance with Section 6.7 of the Indenture.

      SECTION 8.3. Merger or Consolidation of, or Assumption of the Obligations
of the Servicer or Backup Servicer.

      (a) The Servicer will not merge or consolidate with any other person,
convey, transfer or lease substantially all its assets as an entirety to another
Person, or permit any other Person to become the successor to the Servicer's
business unless, after the merger, consolidation, conveyance, transfer, lease or
succession, the successor or surviving entity will be capable of fulfilling the
duties of the Servicer contained in this Agreement and, [subject to Section 4.6
of the Insurance Agreement,] will be acceptable to the Controlling Party, and,
[if an Insurer Default has occurred or is continuing,] will be an Eligible
Servicer. Any corporation (i) into which the Servicer may be merged or
consolidated, (ii) resulting from any merger or consolidation to which the
Servicer will be a party,

                                       47
<PAGE>
(iii) which acquires by conveyance, transfer, or lease substantially all of the
assets of the Servicer, or (iv) succeeding to the business of the Servicer, in
any of the foregoing cases will execute an agreement of assumption to perform
every obligation of the Servicer under this Agreement and, whether or not such
assumption agreement is executed, will be the successor to the Servicer under
this Agreement without the execution or filing of any paper or any further act
on the part of any of the parties to this Agreement, anything in this Agreement
to the contrary notwithstanding; provided, however, that nothing contained
herein will be deemed to release the Servicer from any obligation. The Servicer
will provide notice of any merger, consolidation or succession pursuant to this
Section 8.3 to the Owner Trustee, the Depositor, the Indenture Trustee, the
Noteholders[, the Insurer] and each Rating Agency. Notwithstanding the
foregoing, the Servicer will not merge or consolidate with any other Person or
permit any other Person to become a successor to the Servicer's business, unless
(x) immediately after giving effect to such transaction, no representation or
warranty made pursuant to Section 4.6 will have been breached (for purposes
hereof, such representations and warranties will be true and correct as of the
date of the consummation of such transaction) and no Servicer Termination Event
has occurred and is continuing [other than in connection with a change in
control as provided in the Insurance Agreement], (y) the Servicer will have
delivered to the Owner Trustee, the Indenture Trustee, Backup Servicer, the
Rating Agencies [and the Insurer] an Officer's Certificate and an Opinion of
Counsel each stating that such consolidation, merger or succession and such
agreement of assumption comply with this Section 8.3 and that all conditions
precedent, if any, provided for in this Agreement relating to such transaction
have been complied with, and (z) the Servicer will have delivered to the Owner
Trustee, the Indenture Trustee, the Rating Agencies [and the Insurer] an Opinion
of Counsel, stating in the opinion of such counsel, either (A) all financing
statements and continuation statements and amendments thereto have been executed
and filed that are necessary to preserve and protect the interest of the Trust
in the Receivables and the Other Conveyed Property and reciting the details of
the filings or (B) no such action will be necessary to preserve and protect such
interest.

      (b) Any corporation (i) into which the Backup Servicer may be merged or
consolidated, (ii) resulting from any merger or consolidation to which the
Backup Servicer will be a party, (iii) which acquires by conveyance, transfer or
lease substantially all of the assets of the Backup Servicer, or (iv) succeeding
to the business of the Backup Servicer, in any of the foregoing cases will
execute an agreement of assumption to perform every obligation of the Backup
Servicer under this Agreement and, whether or not such assumption agreement is
executed, will be the successor to the Backup Servicer under this Agreement
without the execution or filing of any paper or any further act on the part of
any of the parties to this Agreement, anything in this Agreement to the contrary
notwithstanding; provided, however, that nothing contained herein will be deemed
to release the Backup Servicer from any obligation.

      SECTION 8.4. Limitation on Liability of Servicer, Backup Servicer and
Others.

      (a) Neither the Servicer, the Backup Servicer nor any of the directors or
officers or employees or agents of the Servicer or Backup Servicer will be
liable to the Trust or the Noteholders, except as provided in this Agreement,
for any action taken or for refraining from the taking of any action pursuant to
this Agreement; provided, however, that this provision will not protect the
Servicer, the Backup Servicer or any such person against any liability that
would otherwise be imposed by reason of a breach of this Agreement or willful
misfeasance, bad faith or negligence (excluding errors in judgment) in the
performance of duties; provided further that this provision will not affect any
liability of Triad to indemnify the Indenture Trustee and the Owner

                                       48
<PAGE>

Trustee for costs, taxes, expenses, claims, liabilities, losses or damages paid
by the Indenture Trustee and the Owner Trustee, in their individual capacities
pursuant to the Purchase Agreement. The Servicer, the Backup Servicer and any
director, officer, employee or agent of the Servicer or Backup Servicer may rely
in good faith on the written advice of counsel or on any document of any kind
prima facie properly executed and submitted by any Person respecting any matters
arising under this Agreement.

      (b) The Backup Servicer will not be liable for any obligation of the
Servicer contained in this Agreement or for any errors of the Servicer contained
in any computer file, certificate or other data or document delivered to the
Backup Servicer hereunder or on which the Backup Servicer must rely in order to
perform its obligations hereunder, and the Owner Trustee, the Indenture Trustee,
the Backup Servicer, the Depositor [and the Insurer] and the Noteholders will
look only to the Servicer to perform such obligations. The Backup Servicer, the
Indenture Trustee, the Owner Trustee and the Custodian will have no
responsibility and will not be in default hereunder or incur any liability for
any failure, error, malfunction or any delay in carrying out any of their
respective duties under this Agreement if such failure or delay results from the
Backup Servicer acting in accordance with information prepared or supplied by a
Person other than the Backup Servicer (or contractual agents of the Backup
Servicer) or the failure of any such other Person to prepare or provide such
information. The Backup Servicer will have no responsibility, will not be in
default and will incur no liability for (i) any act or failure to act of any
third party (other than its contractual agents), including the Servicer or the
Controlling Party, (ii) any inaccuracy or omission in a notice or communication
received by the Backup Servicer from any third party (other than its contractual
agents), (iii) the invalidity or unenforceability of any Receivable under
applicable law, (iv) the breach or inaccuracy of any representation or warranty
made with respect to any Receivable, or (v) the acts or omissions of any
successor Backup Servicer. The provisions of this Section 8.4(b) will not limit
the Backup Servicer's obligations pursuant to Section 4.14.

      (c) The parties expressly acknowledge and consent to [Indenture Trustee]
acting in the possible dual capacity of Backup Servicer or successor Servicer
and in the capacity as Indenture Trustee. [Indenture Trustee] may, in such dual
or other capacity, discharge its separate functions fully, without hindrance or
regard to conflict of interest principles, duty of loyalty principles or other
breach of fiduciary duties to the extent that any such conflict or breach arises
from the performance by [Indenture Trustee] of express duties set forth in the
this Agreement in any of such capacities, all of which defenses, claims or
assertions are hereby expressly waived by the other parties hereto and the
Noteholders except in the case of gross negligence and willful misconduct by
[Indenture Trustee].

      SECTION 8.5. Delegation of Duties. The Servicer may delegate duties under
this Agreement to an Affiliate of Triad [with the prior written consent of the
Insurer (unless an Insurer Default has occurred and is continuing)]. The
Servicer also may at any time perform through sub-contractors the specific
duties of (i) repossession of Financed Vehicles, (ii) tracking Financed
Vehicles' Lien Certificates and (iii) pursuing the collection of deficiency
balances or other amounts due on certain Liquidated Receivables, [in each case,
without the consent of the Insurer] and may perform other specific collection
and repossession duties through such sub-contractors in accordance with
Servicer's customary servicing policies and procedures; provided, however, that
no such delegation or sub-contracting of duties by the Servicer will relieve the
Servicer of its responsibility with respect to such duties. [So long as no
Insurer Default has occurred and is continuing neither Triad nor any party
acting as Servicer hereunder will appoint any subservicer hereunder without the
prior written consent of the Insurer.]

      SECTION 8.6. Servicer and Backup Servicer Not to Resign. Subject to
Section 8.3, neither the Servicer nor the Backup Servicer may resign from the
obligations and duties imposed on

                                       49
<PAGE>
 it by this Agreement as Servicer or Backup Servicer except upon a determination
that by reason of a change in legal requirements the performance of its duties
under this Agreement would cause it to be in violation of such legal
requirements in a manner which would have a material adverse effect on the
Servicer or the Backup Servicer, as the case may be, and the [Insurer (so long
as an Insurer Default has not occurred) or] the Majority Noteholders [(if an
Insurer Default has occurred and is continuing)] does not elect to waive the
obligations of the Servicer or the Backup Servicer, as the case may be, to
perform the duties which render it legally unable to act or to delegate those
duties to another Person. Any such determination permitting the resignation of
the Servicer or Backup Servicer will be evidenced by an Opinion of Counsel to
such effect delivered and acceptable to the Indenture Trustee, the Owner Trustee
[and the Insurer (unless an Insurer Default has occurred and is continuing)]. No
resignation of the Servicer will become effective until[, so long as no Insurer
Default has occurred and is continuing, the Backup Servicer or an entity
acceptable to the Insurer has assumed the responsibilities and obligations of
the Servicer or, if an Insurer Default has occurred and is continuing,] the
Backup Servicer or a successor Servicer that is an Eligible Servicer has assumed
the responsibilities and obligations of the Servicer. No resignation of the
Backup Servicer will become effective until[, so long as no Insurer Default has
occurred and is continuing, an entity acceptable to the Insurer has assumed the
responsibilities and obligations of the Backup Servicer or, if an Insurer
Default has occurred and is continuing,] a Person that is an Eligible Servicer
has assumed the responsibilities and obligations of the Backup Servicer;
provided, however, that (i) in the event a successor Backup Servicer is not
appointed within 60 days after the Backup Servicer has given notice of its
resignation and has provided the Opinion of Counsel required by this Section
8.6, the Backup Servicer may petition a court for its removal, [(ii) the Backup
Servicer may resign with the written consent of the Insurer and] (iii)
notwithstanding anything to the contrary, if [Indenture Trustee] resigns or is
removed as the Indenture Trustee under the Indenture it will no longer be the
Backup Servicer.

                                   ARTICLE IX

                                     Default

      SECTION 9.1. Servicer Termination Event. For purposes of this Agreement,
each of the following will constitute a "Servicer Termination Event":

      (a) Any failure by the Servicer to deliver to the Indenture Trustee for
distribution to Noteholders any proceeds or payment required to be so delivered
under this Agreement that continues unremedied for a period of two Business Days
(one Business Day with respect to payment of Purchase Amounts) after written
notice is received by the Servicer from the Indenture Trustee [or (unless an
Insurer Default has occurred and is continuing) the Insurer] or after discovery
of such failure by a Responsible Officer of the Servicer;

      (b) Failure by the Servicer to deliver the Servicer's Certificate by the
Determination Date;

      (c) Failure on the part of the Servicer duly to observe or perform any
other covenants or agreements of the Servicer set forth in this Agreement or, if
the Servicer is Triad, failure of Triad duly to perform any other covenants or
agreements of Triad set forth in the Purchase Agreement which failure (i)
materially and adversely affects the rights of Noteholders [(determined without
regard to the availability of funds under the Note Policy), or of the Insurer
(unless an Insurer Default

                                       50
<PAGE>

has occurred and is continuing),] and (ii) continues unremedied for a period of
30 days after the date on which written notice of such failure, requiring the
same to be remedied, has been given to the Servicer by the Indenture Trustee,
the Issuer [or the Insurer (or, if an Insurer Default has occurred and is
continuing,] by any Noteholder);

      (d) An Insolvency Event has occurred with respect to the Servicer;

      (e) Any representation, warranty or statement of the Servicer made in this
Agreement or any certificate, report or other writing delivered pursuant hereto
will prove to be incorrect in any material respect as of the time when the same
will have been made, and the incorrectness of such representation, warranty or
statement has a material adverse effect on the Trust[, the Insurer] or the
Noteholders' interests and, within 30 days after knowledge thereof by the
Servicer or after written notice thereof will have been given to the Servicer by
the Indenture Trustee or [the Insurer (or, if an Insurer Default has occurred
and is continuing,] a Noteholder, the circumstances or conditions in respect of
which such representation, warranty or statement was incorrect will not have
been eliminated or otherwise cured;

     [(f) So long as no Insurer Default has occurred and is continuing, an
Insurance Agreement Event of Default occurs;]

     [(g) A claim is made under the Note Policy; or]

     [(h) The occurrence of a Trigger Event under the Insurance Agreement].

      SECTION 9.2. Consequences of a Servicer Termination Event. If a Servicer
Termination Event has occurred and is continuing, [the Insurer may (or, if an
Insurer Default has occurred and is continuing,] the Indenture Trustee (to the
extent it has knowledge thereof) may, and will at the direction of the Majority
Noteholders), by notice given in writing to the Servicer [(and to the Indenture
Trustee if given by the Insurer)] terminate all of the rights and obligations of
the Servicer under this Agreement[; provided that if no Insurer Default has
occurred and is continuing, neither the Indenture Trustee nor the Majority
Noteholders may deliver such notice, and termination will be in the Insurer's
sole and absolute discretion]. On or after the receipt by the Servicer of such
written notice all authority, power, obligations and responsibilities of the
Servicer under this Agreement, whether with respect to the Notes, the
Certificates or the Other Conveyed Property or otherwise, automatically will
pass to, be vested in and become obligations and responsibilities of the Backup
Servicer (or such other successor Servicer appointed by the Controlling Party);
provided, however, that the successor Servicer will have no liability with
respect to any obligation which was required to be performed by the terminated
Servicer prior to the date that the successor Servicer becomes the Servicer or
any claim of a third party based on any alleged action or inaction of the
terminated Servicer. The successor Servicer is authorized and empowered by this
Agreement to execute and deliver, on behalf of the terminated Servicer, as
attorney-in-fact or otherwise, any and all documents and other instruments and
to do or accomplish all other acts or things necessary or appropriate to effect
the purposes of such notice of termination, whether to complete the transfer and
endorsement of the Receivables and the Other Conveyed Property and related
documents to show the Trust as lienholder or secured party on the related Lien
Certificates, or otherwise. The terminated Servicer agrees to cooperate with the
Controlling Party and the successor Servicer in effecting the termination of the
responsibilities and rights of the terminated Servicer under this Agreement,
including the transfer to the successor Servicer for administration by it of all
cash amounts that will at the time be held by the terminated Servicer for
deposit, or have been deposited by the terminated Servicer, in the

                                       51
<PAGE>

Collection Account or thereafter received with respect to the Receivables and
the delivery to the successor Servicer of all Receivable Files, Monthly Records
and Collection Records and a computer tape in readable form as of the most
recent Business Day containing all information necessary to enable the successor
Servicer to service the Receivables and the Other Conveyed Property. If
requested by the Controlling Party, the successor Servicer will terminate the
Blocked Account Agreement and direct the Obligors to make all payments under the
Receivables directly to the successor Servicer (in which event the successor
Servicer will process such payments in accordance with Section 4.2(e)), or to a
lockbox established by the successor Servicer at the direction of the
Controlling Party, at the successor Servicer's expense. The terminated Servicer
will grant the Indenture Trustee, the successor Servicer and the Controlling
Party reasonable access to the terminated Servicer's premises at the terminated
Servicer's expense.

      SECTION 9.3. Appointment of Successor.

      (a) On and after the time the Servicer receives a notice of termination
pursuant to Section 9.2, or upon the resignation of the Servicer pursuant to
Section 8.6, the Backup Servicer (unless the Controlling Party will have
exercised its option pursuant to Section 9.3(b) to appoint an alternate
successor Servicer) will be the successor in all respects to the Servicer in its
capacity as servicer under this Agreement and the transactions set forth or
provided for in this Agreement, and will be subject to all the rights,
responsibilities, restrictions, duties, liabilities and termination provisions
relating thereto placed on the Servicer by the terms and provisions of this
Agreement except as otherwise stated herein. The Indenture Trustee and such
successor will take such action, consistent with this Agreement, as will be
necessary to effectuate any such succession. If a successor Servicer is acting
as Servicer hereunder, it will be subject to termination under Section 9.2 upon
the occurrence of any Servicer Termination Event applicable to it as Servicer.

      (b) The Controlling Party may exercise at any time its right to appoint as
Backup Servicer or as successor to the Servicer a Person other than the Person
serving as Backup Servicer at the time, and [(without limiting its obligations
under the Note Policy)] will have no liability to the Indenture Trustee, Triad,
the Depositor, the Person then serving as Backup Servicer, any Noteholders or
any other Person if it does so. Notwithstanding the above, if the Backup
Servicer will be legally unable or unwilling to act as Servicer[, and an Insurer
Default has occurred and is continuing,] the Backup Servicer, the Indenture
Trustee or the Majority Noteholders may petition a court of competent
jurisdiction to appoint any Eligible Servicer as the successor to the Servicer.
Pending appointment pursuant to the preceding sentence, the Backup Servicer,
subject to Section 8.6(iii), will act as successor Servicer unless it is legally
unable to do so, in which event the outgoing Servicer will continue to act as
Servicer until a successor has been appointed and accepted such appointment.
Subject to Section 8.6, no provision of this Agreement will be construed as
relieving the Backup Servicer of its obligation to succeed as successor Servicer
upon the termination of the Servicer pursuant to Section 9.2 or the resignation
of the Servicer pursuant to Section 8.6. If upon the termination of the Servicer
pursuant to Section 9.2 or the resignation of the Servicer pursuant to Section
8.6, the Controlling Party appoints a successor Servicer other than the Backup
Servicer, the Backup Servicer will not be relieved of its duties as Backup
Servicer hereunder.

      (c) Any successor Servicer will be entitled to such compensation (whether
payable out of the Collection Account or otherwise) as the Servicer would have
been entitled to under this Agreement if the Servicer had not resigned or been
terminated hereunder. [The Insurer, if the Class A Notes are outstanding and no
Insurer Default has occurred and is continuing, and] such successor Servicer may
agree on additional compensation to be paid to such successor Servicer, which

                                       52
<PAGE>

additional compensation will be payable as provided herein and will in no event
exceed $150,000 in the aggregate and which will be deemed to be part of the
"Servicing Fee" described in Section 4.8. The Backup Servicer will not be liable
for any Servicing Fee, additional compensation or other amounts to be paid to
such successor Servicer in connection with its assumption and performance of the
servicing duties described herein.

      SECTION 9.4. Notification to Noteholders. Upon any termination of, or
appointment of a successor to, the Servicer, the Indenture Trustee will give
prompt written notice thereof to each Noteholder and to the Rating Agencies.

      SECTION 9.5. Waiver of Past Defaults. [So long as no Insurer Default has
occurred and is continuing, the Insurer (or, if an Insurer Default has occurred
and is continuing,] the Majority Noteholders) may, on behalf of all Noteholders,
waive any default by the Servicer in the performance of its obligations
hereunder and its consequences. Upon any such waiver of a past default, such
default will cease to exist, and any Servicer Termination Event arising
therefrom will be deemed to have been remedied for every purpose of this
Agreement. No such waiver will extend to any subsequent or other default or
impair any right consequent thereto.

                                   ARTICLE X

                                  Termination

      SECTION 10.1. Optional Purchase of All Receivables.

      (a) On any Distribution Date after the last day of any Collection Period
as of which the Pool Balance will be less than or equal to 10% of the Original
Pool Balance, the Servicer will have the option to purchase the Owner Trust
Estate, other than the Trust Accounts [(with the consent of the Insurer if such
purchase would result in a claim on the Note Policy or would result in any
amount owing to the Insurer under the Insurance Agreement remaining unpaid)];
provided, however, that the amount to be paid for such purchase (as set forth in
the following sentence) will be sufficient to pay the full amount of principal,
premium, if any, and interest due and payable on the Notes on such Distribution
Date. To exercise such option, the Servicer will deposit at least two Business
Days prior to such Distribution Date pursuant to Section 5.6 in the Collection
Account an amount equal to the aggregate Purchase Amount for the Receivables
(other than Receivables that became Liquidated Receivables on or before the last
day of the Collection Period preceding such Distribution Date), plus the
appraised value of any other property held by the Trust (other than the Trust
Accounts), such value to be determined by an appraiser mutually agreed upon by
the Servicer[, the Insurer] and the Indenture Trustee, and will succeed to all
interests in and to the Trust.

      (b) Upon any sale of the assets of the Trust pursuant to Section 8.1 of
the Trust Agreement, the Servicer will instruct the Indenture Trustee to deposit
the proceeds from such sale after all payments and reserves therefrom (including
the expenses of such sale) have been made (the "Insolvency Proceeds") in the
Collection Account.

      (c) Notice of any termination of the Trust will be given by the Servicer
to the Owner Trustee, the Indenture Trustee, the Backup Servicer[, the Insurer]
and the Rating Agencies as soon as practicable after the Servicer has received
notice thereof.

                                       53
<PAGE>

      (d) Following the satisfaction and discharge of the Indenture and the
payment in full of the principal of and interest on the Notes, the
Certificateholders will succeed to the rights of the Noteholders hereunder and
the Trust will succeed to the rights of, and assume the obligations of, the
Indenture Trustee pursuant to this Agreement.

                                   ARTICLE XI

                      Administrative Duties of the Servicer

      SECTION 11.1. Administrative Duties.

      (a) Duties with Respect to the Basic Documents. The Servicer will perform
all its duties and the duties of the Issuer under the Basic Documents. In
addition, the Servicer will consult with the Owner Trustee as the Servicer deems
appropriate regarding the duties of the Issuer under the Basic Documents. The
Servicer will monitor the performance of the Issuer and will advise the Owner
Trustee when action is necessary to comply with the Issuer's duties under the
Basic Documents. The Servicer will prepare for execution by the Issuer or will
cause the preparation by other appropriate Persons of all such documents,
reports, filings, instruments, certificates and opinions as it will be the duty
of the Issuer to prepare, file or deliver pursuant to the Basic Documents. In
furtherance of the foregoing, the Servicer will take all necessary action that
is the duty of the Issuer to take pursuant to the Indenture, including pursuant
to Sections 2.7, 3.5, 3.6, 3.7, 3.9, 3.10, 3.17, 4.1, 5.4, 7.3, 8.3, 9.2, 9.3,
11.1 and 11.15 of the Indenture.

      (b) Duties with Respect to the Issuer.

            (i) In addition to the duties of the Servicer set forth in the Basic
      Documents, the Servicer will perform such calculations and will prepare
      for execution by the Issuer or the Owner Trustee or will cause the
      preparation by other appropriate Persons of all such documents, reports,
      filings, instruments, certificates and opinions as it will be the duty of
      the Issuer or the Owner Trustee to prepare, file or deliver pursuant to
      any of the Basic Documents or under state and federal tax and securities
      laws, and at the request of the Owner Trustee will take all appropriate
      action that it is the duty of the Issuer to take pursuant to any of the
      Basic Documents. In accordance with the directions of the Issuer or the
      Owner Trustee, the Servicer will administer, perform or supervise the
      performance of such other activities in connection with the Collateral
      (including the Basic Documents) as are not covered by any of the foregoing
      provisions and as are expressly requested by the Issuer or the Owner
      Trustee and are reasonably within the capability of the Servicer.

            (ii) Notwithstanding anything in any of the Basic Documents to the
      contrary, the Servicer will be responsible for promptly notifying the
      Owner Trustee and the Indenture Trustee in the event that any withholding
      tax is imposed on the Issuer's payments (or allocations of income) to an
      Owner (as defined in the Trust Agreement) as contemplated in this
      Agreement. Any such notice will be in writing and specify the amount of
      any withholding tax required to be withheld by the Owner Trustee or the
      Indenture Trustee pursuant to such provision.

            (iii) Notwithstanding anything in the Basic Documents to the
      contrary, the Servicer will be responsible for performance of any duties
      of the Issuer set forth in any

                                       54
<PAGE>

      amended Trust Agreement (as contemplated by Section 2.12 of the Trust
      Agreement) with respect to, among other things, accounting and reports to
      Certificateholders (as defined in the Trust Agreement); provided, however,
      that once prepared by the Servicer the Owner Trustee will retain
      responsibility for the distribution of the Schedule K-1s upon request of
      the Certificateholder in order to enable the Certificateholder to prepare
      its federal and state income tax returns.

            (iv) The Servicer will perform the duties of the Servicer specified
      in Section 9.2 of the Trust Agreement required to be performed in
      connection with the resignation or removal of the Owner Trustee, and any
      other duties expressly required to be performed by the Servicer under any
      of the Basic Documents.

            (v) In carrying out the foregoing duties or any of its other
      obligations under this Agreement, the Servicer may enter into transactions
      with or otherwise deal with any of its Affiliates; provided, however, that
      the terms of any such transactions or dealings will be in accordance with
      any directions received from the Issuer and will be, in the Servicer's
      opinion, no less favorable to the Issuer in any material respect.

      (c) Tax Matters. The Servicer will prepare and file, on behalf of the
Trust, all tax returns, tax elections, financial statements and such annual or
other reports attributable to the activities engaged in by the Issuer as are
necessary for preparation of tax reports, including forms 1099. All tax returns
will be signed by the Servicer unless applicable law requires a
Certificateholder to sign such documents.

      (d) Non-Ministerial Matters. With respect to matters that in the
reasonable judgment of the Servicer are non-ministerial, the Servicer will not
take any action pursuant to this Article XI unless within a reasonable time
before the taking of such action, the Servicer will have notified the Owner
Trustee and the Indenture Trustee of the proposed action and the Owner Trustee
and, with respect to items (A), (B), (C) and (D) below, the Indenture Trustee
[and, so long as no Insurer Default has occurred and is continuing, the Insurer]
will not have withheld consent or provided an alternative direction. For the
purpose of the preceding sentence, "non-ministerial matters" include:

                  (A) the amendment of or any supplement to the Indenture;

                  (B) the initiation of any claim or lawsuit by the Issuer and
            the compromise of any action, claim or lawsuit brought by or against
            the Issuer (other than in connection with the collection of the
            Receivables);

                  (C) the amendment, change or modification of any of the Basic
            Documents;

                  (D) the appointment of successor Note Registrars, successor
            Paying Agents and successor Indenture Trustees pursuant to the
            Indenture or the appointment of Successor Servicers or the consent
            to the assignment by the Note Registrar, Paying Agent or Indenture
            Trustee of its obligations under the Indenture; and

                  (E) the removal of the Indenture Trustee.

                                       55
<PAGE>

      (e) Exceptions. Except as expressly set forth herein, the Servicer, in its
capacity hereunder, will not be obligated to, and will not, (1) make any
payments to the Noteholders or Certificateholders under the Basic Documents, (2)
sell the Trust Estate pursuant to Section 5.5 of the Indenture, (3) take any
other action that the Issuer directs the Servicer not to take on its behalf or
(4) in connection with its duties hereunder assume any indemnification
obligation of any other Person.

      (f) The Backup Servicer or any successor Servicer will not be responsible
for any obligations or duties of the Servicer under this Section 11.1.

      SECTION 11.2. Records. The Servicer will maintain appropriate books of
account and records relating to services performed under this Agreement, which
books of account and records will be accessible for inspection by the Issuer at
any time during normal business hours upon reasonable prior notice.

      SECTION 11.3. Additional Information to be Furnished to the Issuer. The
Servicer will furnish to the Issuer [and, so long as no Insurer Default has
occurred and is continuing, the Insurer], from time to time such additional
information regarding the Collateral as the Issuer [and, so long as no Insurer
Default has occurred and is continuing, the Insurer,] will reasonably request.

                                  ARTICLE XII

                            Miscellaneous Provisions

      SECTION 12.1. Amendment.

      (a) This Agreement may be amended from time to time by the parties hereto,
with the consent of the Indenture Trustee (which consent may not be unreasonably
withheld) [with the prior written consent of the Insurer (which consent will not
be unreasonably withheld; provided that no Insurer Default has occurred and is
continuing)] but without the consent of any of the Noteholders, to cure any
ambiguity, to correct or supplement any provisions in this Agreement, to comply
with any changes in the Code, or to make any other provisions with respect to
matters or questions arising under this Agreement which will not be inconsistent
with the provisions of this Agreement [or the Insurance Agreement]; provided,
however, that such action will not, as evidenced by an Opinion of Counsel
delivered to Owner Trustee and the Indenture Trustee, adversely affect in any
material respect the interests of any Noteholder[; provided further that if an
Insurer Default has occurred and is continuing, such action will not materially
adversely affect the interests of the Insurer].

      (b) This Agreement may also be amended from time to time by the parties
hereto, with [the consent of the Insurer,] the consent of the Indenture Trustee,
and the consent of the Holders of Notes evidencing not less than a majority
of the outstanding principal amount of the Notes 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;
provided, however, that no such amendment will (a) increase or reduce in any
manner the amount of, or accelerate or delay the timing of, collections of
payments on Receivables or distributions that will be required to be made for
the benefit of the Noteholders or (b) reduce the aforesaid percentage of the
outstanding principal amount of the Notes, the Holders of which are required to
consent to any such amendment, without the consent of the Holders of all the
outstanding Notes of each class affected thereby;

                                       56
<PAGE>

[provided, further, that if an Insurer Default has occurred and is continuing,
such action will not materially adversely affect the interest of the Insurer.]

      (c) The party requesting such amendment will furnish written notification
of the substance of such amendment or consent to the Rating Agencies before the
execution thereof and the Indenture Trustee will furnish written notification of
the substance of such amendment or consent to each Noteholder promptly after the
execution thereof.

      (d) It will not be necessary for the consent of Noteholders pursuant to
this Section 12.1 to approve the particular form of any proposed amendment or
consent, but it will be sufficient if such consent will approve the substance
thereof. The manner of obtaining such consents (and any other consents of
Noteholders provided for in this Agreement) and of evidencing the authorization
of any action by Noteholders will be subject to such reasonable requirements as
the Indenture Trustee or the Owner Trustee, as applicable, may prescribe.

      (e) Prior to the execution of any amendment to this Agreement, the Owner
Trustee, the Indenture Trustee[, the Insurer] and Backup Servicer will be
entitled to receive and conclusively rely upon an Opinion of Counsel stating
that the execution of such amendment is authorized or permitted by this
Agreement and the Opinion of Counsel referred to in Section 12.2(h)(1) has been
delivered. The Owner Trustee, the Backup Servicer and the Indenture Trustee may,
but will not be obligated to, enter into any such amendment which affects the
Issuer's, the Owner Trustee's, the Backup Servicer's or the Indenture Trustee's,
as applicable, own rights, duties or immunities under this Agreement or
otherwise.

      SECTION 12.2. Protection of Title to Trust.

      (a) Triad will cause to be executed and filed such financing statements
and continuation statements, all in such manner and in such places as may be
required by law fully to preserve, maintain and protect the interest of the
Issuer and the interests of the Indenture Trustee in the Receivables and in the
proceeds thereof. Triad will deliver (or cause to be delivered) [to the
Insurer,] the Owner Trustee and the Indenture Trustee file-stamped copies of, or
filing receipts for, any document filed as provided above, as soon as available
following such filing.

      (b) Neither the Depositor nor the Servicer will change its name, identity,
corporate structure or jurisdiction of formation or take any action that would,
could or might make any financing statement or continuation statement filed in
accordance with Section 12.2(a) ineffective to continue the first priority
perfected security interest in that portion of the trust estate in which a
security interest may be perfected by filing under the applicable Uniform
Commercial Code. If any refiling is required, the Depositor or Servicer, as the
case may be, will promptly give notice and file new financing statements or
amendments thereto or continuation statements thereof. Promptly upon such
filing, the Depositor or the Servicer, as the case may be, will deliver an
Opinion of Counsel [in form and substance reasonably satisfactory to the
Insurer,] stating either (A) all financing statements and continuation
statements have been executed and filed that are necessary fully to preserve and
protect the interest of the Trust and the Indenture Trustee in the Receivables,
and reciting the details of such filings or referring to prior Opinions of
Counsel in which such details are given, or (B) no such action will be necessary
to preserve and protect such interest.

      (c) The Servicer will at all times maintain each office from which it will
service Receivables, and its principal executive office, within the United
States of America.

                                       57
<PAGE>

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

      (e) The Servicer will maintain its computer systems so that, from and
after the time of sale under this Agreement of the Receivables to the Issuer,
the Servicer's master computer records (including any backup archives) that
refer to a Receivable will indicate clearly the interest of the Trust in such
Receivable and that such Receivable is owned by the Trust. Indication of the
Trust's interest in a Receivable will be deleted from or modified on the
Servicer's computer systems when, and only when, the related Receivable will
have been paid in full or repurchased.

      (f) If at any time the Servicer proposes to sell, grant a security
interest in or otherwise transfer any interest in motor vehicle receivables to
any prospective purchaser, lender or other transferee, the Servicer will give to
such prospective purchaser, lender or other transferee computer tapes, records
or printouts (including any restored from backup archives) that, if they refer
in any manner whatsoever to any Receivable, indicate clearly that such
Receivable has been sold and is owned by the Trust unless such Receivable has
been paid in full or repurchased.

      (g) Upon request, the Servicer will furnish to [the Insurer,] the Owner
Trustee or to the Indenture Trustee, within five Business Days, a list of all
Receivables (by contract number and name of Obligor) then held as part of the
Trust, together with a reconciliation of such list to the Schedule of
Receivables and to each of the Servicer's Certificates furnished before such
request indicating removal of Receivables from the Trust.

      (h) The Servicer will deliver to [the Insurer,] the Owner Trustee and the
Indenture Trustee promptly after the execution and delivery of the Agreement
and, if required pursuant to Section 12.1, of each amendment, an Opinion of
Counsel stating that, in the opinion of such counsel, [in form and substance
reasonably satisfactory to the Insurer,] either (A) all financing statements and
continuation statements have been executed and filed that are necessary fully to
preserve and protect the interest of the Trust and the Indenture Trustee in the
Receivables, and reciting the details of such filings or referring to prior
Opinions of Counsel in which such details are given, or (B) no such action will
be necessary to preserve and protect such interest. Each Opinion of Counsel
referred to in this paragraph (h) will specify any action necessary (as of the
date of such opinion) to be taken in the following year to preserve and protect
such interest.

      SECTION 12.3. Notices. All demands, notices and communications hereunder
will be in writing and will be deemed to have been duly given to the addressee
if mailed, by first-class registered mail, postage prepaid service, confirmed
facsimile transmission, or a nationally recognized express courier, as follows:

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

                                       58
<PAGE>

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

            If to the Issuer or
            Owner Trustee:                  [_________________]
                                            [_________________]
                                            [_________________]
                                            [_________________]

            If to the Indenture Trustee:    [_________________
                                            [_________________]
                                            [_________________]
                                            [_________________]

            [If to the Insurer:             [_________________]
                                            [_________________]
                                            [_________________]
                                            [_________________]

In each case in which notice or other communication to the Insurer refers to a
Servicer Termination Event, a claim on the Note Policy, or with respect to which
failure on the part of the Insurer to respond will be deemed to constitute
consent or acceptance, then a copy of such notice or other communication should
also be sent to the attention of General Counsel and will be marked to indicate
"URGENT MATERIAL ENCLOSED."]

            If to Moody's:                  Moody's Investors Service, Inc.
                                            ABS Monitoring Department
                                            99 Church Street
                                            New York, New York 10007

            If to Standard & Poor's:        Standard & Poor's Ratings Group
                                            55 Water Street
                                            New York, New York 10041
                                            Attention: Asset Backed Surveillance
                                            Department

            [If to Fitch:                   Fitch Ratings
                                            One State Street Plaza
                                            New York, New York 10004.]

Any such demand, notice or communication hereunder will be deemed to have been
received on the date delivered to or received at the premises of the addressee
as evidenced by the date noted on the return receipt.

            Subject to Section 5.10(b) hereof, any notice required or permitted
to be mailed to a Noteholder will be given by first class mail, postage prepaid,
at the address of such Holder as shown in the Note Register. Any notice so
mailed within the time prescribed in the Agreement will be conclusively presumed
to have been duly given, whether or not the Noteholder receives such notice.

                                       59
<PAGE>

      SECTION 12.4. Assignment. This Agreement will inure to the benefit of and
be binding upon the parties hereto and their respective successors and permitted
assigns. Notwithstanding anything to the contrary contained herein, except as
provided in Sections 7.4 and 8.3 and as provided in the provisions of this
Agreement concerning the resignation of the Servicer, this Agreement may not be
assigned by the Depositor or the Servicer without the prior written consent of
the Trust, the Backup Servicer, the Indenture Trustee and [the Insurer (or if an
Insurer Default has occurred and is continuing] the Noteholders evidencing not
less than 66-2/3% of the principal amount of the outstanding Notes).

      SECTION 12.5. Limitations on Rights of Others. The provisions of this
Agreement are solely for the benefit of the parties hereto, the Indenture
Trustee, the Owner Trustee and the Noteholders, as third-party beneficiaries.
[The Insurer and its successors and assigns will be a third-party beneficiary to
the provisions of this Agreement, and will be entitled to rely upon and directly
enforce such provisions of this Agreement so long as no Insurer Default has
occurred and is continuing. Except as expressly stated otherwise herein, any
right of the Insurer to direct, appoint, consent to, approve of, or take any
action under this Agreement, will be a right exercised by the Insurer in its
sole and absolute discretion. The Insurer may disclaim any of its rights and
powers under this Agreement (but not its duties and obligations under the Note
Policy) upon delivery of a written notice to the Owner Trustee.] Except as
provided in this Agreement, no other Person will have any legal or equitable
right, remedy or claim in the Owner Trust Estate or under or in respect of this
Agreement or any covenants, conditions or provisions contained herein.

      SECTION 12.6. Severability. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction will, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction will not invalidate or render unenforceable
such provision in any other jurisdiction.

      SECTION 12.7. Separate Counterparts. This Agreement may be executed by the
parties hereto in separate counterparts, each of which when so executed and
delivered will be an original, but all such counterparts will together
constitute but one and the same instrument.

      SECTION 12.8. Headings. The headings of the various Articles and Sections
herein are for convenience of reference only and will not define or limit any of
the terms or provisions hereof.

      SECTION 12.9. Governing Law. THIS AGREEMENT WILL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER WILL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

      SECTION 12.10. Assignment to Indenture Trustee. The Depositor hereby
acknowledges and consents to any mortgage, pledge, assignment and grant of a
security interest by the Issuer to the Indenture Trustee pursuant to the
Indenture for the benefit of the Noteholders of all right, title and interest of
the Issuer in, to and under the Receivables and/or the assignment of any or all
of the Issuer's rights and obligations hereunder to the Indenture Trustee.

                                       60
<PAGE>

      SECTION 12.11. Nonpetition Covenants.

      (a) Notwithstanding any termination of this Agreement, the Servicer, the
Backup Servicer, the Indenture Trustee and the Depositor will not, prior to the
date that is one year and one day after the termination of this Agreement,
acquiesce, petition or otherwise invoke or cause the Issuer to invoke the
process of any court or government authority for the purpose of commencing or
sustaining a case against the Issuer under any federal or state bankruptcy,
insolvency or similar law or appointing a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of the Issuer or any
substantial part of its property, or ordering the winding up or liquidation of
the affairs of the Issuer.

      (b) Notwithstanding any termination of this Agreement, the Issuer, the
Servicer, the Backup Servicer and the Indenture Trustee will not, prior to the
date that is one year and one day after the termination of this Agreement with
respect to the Depositor, acquiesce to, petition or otherwise invoke or cause
the Depositor to invoke the process of any court or government authority for the
purpose of commencing or sustaining a case against the Depositor under any
federal or state bankruptcy, insolvency or similar law, appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator, or other similar
official of the Depositor or any substantial part of its property, or ordering
the winding up or liquidation of the affairs of the Depositor.

      SECTION 12.12. Limitation of Liability of Owner Trustee and Indenture
Trustee.

      (a) Notwithstanding anything contained herein to the contrary, this
Agreement has been executed by [Owner Trustee] not in its individual capacity
but solely in its capacity as Owner Trustee of the Issuer and in no event will
[Owner Trustee] in its individual capacity or, except as expressly provided in
the Trust Agreement, as Owner Trustee have any liability for the
representations, warranties, covenants, agreements or other obligations of the
Issuer hereunder or in any of the certificates, notices or agreements delivered
pursuant hereto, as to all of which recourse will be had solely to the assets of
the Issuer. For all purposes of this Agreement, in the performance of its duties
or obligations hereunder or in the performance of any duties or obligations of
the Issuer hereunder, the Owner Trustee will be subject to, and entitled to the
benefits of, the terms and provisions of Articles V, VI and VII of the Trust
Agreement.

      (b) Notwithstanding anything contained herein to the contrary, this
Agreement has been executed and delivered by [Indenture Trustee], not in its
individual capacity but solely as Indenture Trustee and Backup Servicer and in
no event will [Indenture Trustee] have any liability for the representations,
warranties, covenants, agreements or other obligations of the Issuer hereunder
or in any of the certificates, notices or agreements delivered pursuant hereto,
as to all of which recourse will be had solely to the assets of the Issuer.

      (c) In no event will [Indenture Trustee], in any of its capacities
hereunder, be deemed to have assumed any duties of the Owner Trustee under the
Delaware Statutory Trust Statute, common law, or the Trust Agreement.

      SECTION 12.13. Independence of the Servicer. For all purposes of this
Agreement, the Servicer will be an independent contractor and will not be
subject to the supervision of the Issuer, the Indenture Trustee and Backup
Servicer or the Owner Trustee with respect to the manner in which it

                                       61
<PAGE>

accomplishes the performance of its obligations hereunder. Unless expressly
authorized by this Agreement, the Servicer will have no authority to act for or
represent the Issuer or the Owner Trustee in any way and will not otherwise be
deemed an agent of the Issuer or the Owner Trustee.

      SECTION 12.14. No Joint Venture. Nothing contained in this Agreement (i)
will constitute the Servicer and either of the Issuer or the Owner Trustee as
members of any partnership, joint venture, association, syndicate,
unincorporated business or other separate entity, (ii) will be construed to
impose any liability as such on any of them or (iii) will be deemed to confer on
any of them any express, implied or apparent authority to incur any obligation
or liability on behalf of the others.

      SECTION 12.15. Nonpublic Personal Information. In the course of carrying
out their duties under this Agreement, the Indenture Trustee, the Backup
Servicer, the Issuer and the Depositor shall develop or receive certain
information regarding the "consumers" and "customers" of the Servicer, including
but not limited to "nonpublic personal information," (as those terms are defined
in Title V of the Gramm-Leach-Bliley Act and the privacy regulations adopted
thereunder). Notwithstanding any other provision of the Agreement, with respect
to nonpublic personal information about the customers and consumers of the
Servicer, each of the Indenture Trustee, the Backup Servicer, the Issuer and the
Depositor agrees as follows: (i) except as may be reasonably necessary in the
ordinary course of business to carry out the activities to be performed by the
Indenture Trustee, the Backup Servicer, the Issuer or the Depositor under this
Agreement or as may be required by law or legal process, it will not disclose
any such nonpublic personal information to any third party; (ii) it will not use
any such nonpublic personal information other than to carry out the purposes for
which it was disclosed to the Indenture Trustee, the Backup Servicer, the Issuer
or the Depositor, as applicable, unless such other use is expressly permitted by
a written agreement executed by the Servicer or required by law or legal
process; (iii) it shall restrict disclosure of the information solely to those
of its employees with a need to know and will advise employees who receive the
information of the obligation of confidentiality hereunder; and (iv) it will
take all reasonable measures, including without limitation such measures as it
takes to safeguard its own confidential information, to ensure the security and
confidentiality of all such nonpublic personal information, to protect against
anticipated threats or hazards to the security or integrity of such nonpublic
personal information and to protect against unauthorized access to or use of
such nonpublic personal information. The Servicer shall have access (during
normal business hours, upon reasonable prior notice) to review such books and
records of the Indenture Trustee, the Backup Servicer, Issuer and the Depositor
as may be necessary to assess compliance with the requirements of this Section
12.15. All costs and expenses of such a review shall be borne solely by the
Servicer, unless the results of such review indicate a breach of this Section
12.15 by the Indenture Trustee, the Backup Servicer, the Issuer or the
Depositor. The Indenture Trustee, the Backup Servicer, the Issuer or the
Depositor, as applicable, shall promptly notify the Servicer if it receives any
complaint or notice concerning a violation of privacy rights or becomes aware of
a breach of customer data security. Upon termination of this Agreement, the
Indenture Trustee, the Backup Servicer, the Issuer and the Depositor shall
return or destroy all nonpublic personal information, without retaining any
copies of such documents and records.

                           [Signature page to follow]

                                       62
<PAGE>

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

                                      TRIAD AUTOMOBILE RECEIVABLES TRUST 200_-_

                                      By: [OWNER TRUSTEE], not in its
                                      individual capacity but solely as Owner
                                      Trustee of the Trust

                                      By: _________________________________
                                          Name:
                                          Title:

                                      TRIAD FINANCIAL SPECIAL PURPOSE LLC, as
                                      Depositor

                                      By: _________________________________
                                          Name:
                                          Title:

                                      TRIAD FINANCIAL CORPORATION, as Servicer
                                      and Custodian

                                      By: _________________________________
                                          Name:
                                          Title:

          [Signature Page to Sale and Servicing Agreement (p. 1 of 2)]

<PAGE>

                                      [INDENTURE TRUSTEE],
                                      not in its individual capacity but solely
                                      as Backup Servicer

                                      By: _________________________________
                                          Name:
                                          Title:

Acknowledged and accepted by

[INDENTURE TRUSTEE],
not in its individual capacity but solely as Indenture Trustee

By: _______________________________
    Name:
    Title:

          [Signature page to Sale and Servicing Agreement (p. 2 of 2)]

<PAGE>

                                                                      SCHEDULE A

                             SCHEDULE OF RECEIVABLES

                   [See Schedule A to the Purchase Agreement]

                                     SCH-A-1

<PAGE>

                                                                      SCHEDULE B

                         REPRESENTATIONS AND WARRANTIES

                   [See Schedule B to the Purchase Agreement]

                                     SCH-B-1

<PAGE>

                                                                      SCHEDULE C

                        SERVICING POLICIES AND PROCEDURES
                Note: Applicable Time Periods Will Vary by State

                                     SCH-C-1

<PAGE>

                                                                      SCHEDULE D

                          CUSTODIAN THIRD PARTY VENDORS

                                     SCH-D-1

<PAGE>

                                                                       EXHIBIT A

                             SERVICER'S CERTIFICATE

                                       B-1

<PAGE>

                                                                       EXHIBIT B

                     FORM OF NOTE GUARANTY INSURANCE POLICY

                                       C-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]